The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7881

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 7, 2013
                               ___________

Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
  Committee on Housing

AN ACT to amend the administrative code of the city of New York and  the
  emergency  housing  rent control law, in relation to the establishment
  of rent adjustments; and repealing certain provisions of the  adminis-
  trative code of the city of New York relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision a of section 26-405 of the administrative code
of the city of New York is amended by adding a new paragraph 10 to  read
as follows:
  (10)  (A) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS SUBDIVISION,
EFFECTIVE JANUARY FIRST, TWO THOUSAND FOURTEEN, MAXIMUM RENTS FOR  HOUS-
ING  ACCOMMODATIONS  SUBJECT  TO  THIS CHAPTER SHALL NO LONGER BE ESTAB-
LISHED PURSUANT TO THE OPENING  PARAGRAPH  OF  PARAGRAPH  FOUR  OF  THIS
SUBDIVISION.
  (B)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS PARAGRAPH, THE RENT GUIDE-
LINES BOARD ESTABLISHED PURSUANT TO SECTION 26-510 OF THIS  TITLE  SHALL
ESTABLISH  ANNUAL  RATES  OF  RENT  ADJUSTMENT  FOR THE CLASS OF HOUSING
ACCOMMODATIONS SUBJECT TO THIS CHAPTER, IN THE MANNER PROVIDED  BY  SUCH
SECTION.  THE  FACT  THAT  THE  HOUSING ACCOMMODATION IS SUBJECT TO THIS
CHAPTER MAY NOT BE CONSIDERED AS A FACTOR IN  DETERMINING  THE  RATE  OF
RENT  ADJUSTMENT.  NOT  LATER THAN OCTOBER FIRST, TWO THOUSAND THIRTEEN,
AND NOT LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER,  THE  RENT  GUIDE-
LINES  BOARD  SHALL FILE WITH THE CITY CLERK AND THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL ITS FINDINGS ESTABLISHED IN CONSIDERATION  OF  THE
ECONOMIC  FACTORS  LISTED  IN  SUBDIVISION  B  OF SECTION 26-510 OF THIS
TITLE, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXIMUM
RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE  OR  MORE  CLASSES  OF
ACCOMMODATIONS  SUBJECT TO THIS CHAPTER AUTHORIZED FOR THE ADJUSTMENT OF
THE MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE TWELVE MONTH PERI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09961-04-3

A. 7881                             2

OD COMMENCING JANUARY FIRST, TWO THOUSAND THIRTEEN AND FOR EACH SUCCEED-
ING TWELVE MONTH PERIOD.
  (C)  EFFECTIVE  JANUARY  FIRST,  TWO  THOUSAND  FOURTEEN,  THE MAXIMUM
COLLECTABLE RENT IN EFFECT AS OF  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
THIRTEEN  PLUS  AN  AVERAGE  OF THE PREVIOUS FIVE YEARS OF ONE-YEAR RENT
INCREASES ON STABILIZED APARTMENTS AS ESTABLISHED BY THE RENT GUIDELINES
BOARD, PROVIDED THAT A LANDLORD SHALL NOT COLLECT ANY RENT  INCREASE  OR
ADJUSTMENT  OTHERWISE  COLLECTIBLE  UNDER SUBPARAGRAPH (B) OF THIS PARA-
GRAPH UNLESS AND UNTIL THE FIRST RENT PAYMENT DATE  AFTER  THE  LANDLORD
CERTIFIES TO THE CITY RENT AGENCY THAT ALL RENT IMPAIRING VIOLATIONS, AS
DEFINED BY SECTION THREE HUNDRED TWO-A OF THE MULTIPLE DWELLING LAW, AND
AT  LEAST EIGHTY PER CENTUM OF ALL OTHER VIOLATIONS OF THE HOUSING MAIN-
TENANCE CODE OR OTHER STATE OR LOCAL LAWS THAT  IMPOSE  REQUIREMENTS  ON
PROPERTY  AND WHICH WERE RECORDED OR ISSUED AGAINST THE PROPERTY ON JULY
FIRST, TWO THOUSAND TWELVE, OR JULY FIRST  OF  THE  YEAR  PRECEDING  THE
ADJUSTMENT,  WHICHEVER  IS LATER, HAVE BEEN CLEARED, CORRECTED OR ABATED
AND THE LANDLORD HAS RECEIVED AN ORDER OF ELIGIBILITY FROM THE CITY RENT
AGENCY THAT THE VIOLATION CLEARING REQUIREMENTS  SET  FORTH  ABOVE  HAVE
BEEN  MET  AND  FURTHER  AUTHORIZING  THE  LANDLORD  TO COLLECT ANY RENT
INCREASE OR ADJUSTMENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (B)  OF  THIS
PARAGRAPH, AND THE LANDLORD HAS SERVED SUCH ORDER UPON THE TENANT RESID-
ING  IN  THE  HOUSING ACCOMMODATION AND THAT THE LANDLORD HAS MAINTAINED
ALL ESSENTIAL AND REQUIRED SERVICES PURSUANT TO SECTION  2102.3  OF  THE
NEW  YORK  CITY RENT AND EVICTION REGULATIONS. THE RENT GUIDELINES BOARD
SHALL ANNUALLY ISSUE INFORMATIONAL MATERIAL SETTING  FORTH  THE  MAXIMUM
RATES.   ANY HOUSING ACCOMMODATION FOR WHICH A RENT INCREASE PURSUANT TO
PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION HAS  TAKEN  EFFECT  ON  OR
AFTER  JULY  FIRST,  TWO  THOUSAND  THIRTEEN  SHALL NOT BE SUBJECT TO AN
INITIAL RENT ADJUSTMENT PURSUANT  TO  THIS  SUBPARAGRAPH  UNTIL  JANUARY
FIRST, TWO THOUSAND FIFTEEN.
  (D)  MAXIMUM  RATES  OF  RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
WITHIN THE RENT GUIDELINES BOARD'S JURISDICTION.  ONCE  ESTABLISHED,  NO
SUCH  RATE SHALL BE ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT,
REOPENER OR OTHER MODIFICATION.
  (E) NOTHING CONTAINED IN  THIS  PARAGRAPH  SHALL  ALTER,  RESTRICT  OR
IMPAIR  AN  OWNER'S  RIGHT  TO  ESTABLISH THE INITIAL REGULATED RENT FOR
ACCOMMODATIONS SUBJECT TO THIS CHAPTER WHICH BECOME VACANT.
  S 2. Paragraph 5 of subdivision a of section 26-405 of the administra-
tive code of the city of New York is amended to read as follows:
  (5) Where a maximum rent established pursuant to this  chapter  on  or
after  January  first,  nineteen hundred seventy-two, is higher than the
previously existing maximum rent, the landlord may not collect more than
[seven and one-half percentum increase] AN AVERAGE OF THE PREVIOUS  FIVE
YEARS OF ONE-YEAR RENT INCREASES ON STABILIZED APARTMENTS AS ESTABLISHED
BY  THE RENT GUIDELINES BOARD from a tenant in occupancy on such date in
any one year period, provided however, that where the period  for  which
the  rent  is  established  exceeds  one  year,  regardless  of  how the
collection thereof is averaged over such period, the rent  the  landlord
shall be entitled to receive during the first twelve months shall not be
increased  by  more than [seven and one-half percentum over the previous
rent and additional annual rents shall not  exceed  seven  and  one-half
percentum  of  the rent paid during the previous year] AN AVERAGE OF THE
PREVIOUS FIVE YEARS OF ONE-YEAR RENT INCREASES ON STABILIZED  APARTMENTS
AS ESTABLISHED BY THE RENT GUIDELINES BOARD.  Notwithstanding any of the
foregoing  limitations  in  this  paragraph  five, maximum rent shall be

A. 7881                             3

increased if ordered by the agency pursuant to subparagraphs  (d),  (e),
(f),  (g),  (h),  (i)[,  (k),  (l),] OR (m) [or (n)] of paragraph one of
subdivision g of  this  section.  [Commencing  January  first,  nineteen
hundred  eighty,  rent adjustments pursuant to subparagraph (n) of para-
graph one of subdivision g of this section shall be  excluded  from  the
maximum  rent  when  computing the seven and one-half percentum increase
authorized by this paragraph five.] Where  a  housing  accommodation  is
vacant on January first, nineteen hundred seventy-two, or becomes vacant
thereafter  by  voluntary  surrender  of  possession by the tenants, the
maximum rent established BY THE RENT GUIDELINES BOARD for such  accommo-
dations may be collected.
  S 3. Subparagraphs (k), (l) and (n) of paragraph 1 of subdivision g of
section  26-405  of  the administrative code of the city of New York are
REPEALED.
  S 4. Section 4 of chapter 274 of the laws of  1946,  constituting  the
emergency  housing rent control law, is amended by adding a new subdivi-
sion 9 to read as follows:
  9. NOTWITHSTANDING ANY CONTRARY  PROVISIONS  OF  THIS  LAW,  EFFECTIVE
JANUARY  FIRST,  TWO  THOUSAND FOURTEEN, EXCEPT AS OTHERWISE PROVIDED IN
THIS SUBDIVISION, THE RENT FOR HOUSING ACCOMMODATIONS  SUBJECT  TO  THIS
CHAPTER  LOCATED  IN  THE  COUNTIES  OF WESTCHESTER, ROCKLAND AND NASSAU
SHALL BE ADJUSTED AS FOLLOWS:
  (A) THE COUNTY RENT BOARDS ESTABLISHED PURSUANT TO SECTION  4  OF  THE
EMERGENCY  TENANT  PROTECTION ACT OF NINETEEN SEVENTY-FOUR, SHALL ESTAB-
LISH ANNUAL RENT ADJUSTMENTS FOR THE  CLASS  OF  HOUSING  ACCOMMODATIONS
SUBJECT TO THIS CHAPTER LOCATED IN THE COUNTIES OF WESTCHESTER, ROCKLAND
AND  NASSAU,  IN  THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT THE
HOUSING ACCOMMODATION IS SUBJECT TO THIS LAW MAY NOT BE CONSIDERED AS  A
FACTOR  IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN OCTO-
BER FIRST, TWO THOUSAND THIRTEEN, AND NOT LATER THAN OCTOBER FIRST ANNU-
ALLY THEREAFTER, THE COUNTY RENT BOARDS SHALL FILE WITH  THE  COMMISSION
THEIR  FINDINGS  ESTABLISHED  IN  CONSIDERATION  OF THE ECONOMIC FACTORS
LISTED IN SUBDIVISION B OF SECTION 4 OF THE EMERGENCY TENANT  PROTECTION
ACT  OF  NINETEEN SEVENTY-FOUR, AND SHALL ACCOMPANY SUCH FINDINGS WITH A
STATEMENT OF THE MAXIMUM RATE OR RATES OF RENT ADJUSTMENT, IF  ANY,  FOR
ONE  OR  MORE  CLASSES OF ACCOMMODATIONS SUBJECT TO THIS LAW WITHIN SUCH
COUNTIES AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT OF THE  HOUS-
ING  ACCOMMODATION FOR THE TWELVE MONTH PERIOD COMMENCING JANUARY FIRST,
TWO THOUSAND FOURTEEN, AND FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
  (B) EFFECTIVE JANUARY FIRST, TWO THOUSAND FOURTEEN, THE  MAXIMUM  RENT
COLLECTIBLE  FROM  THE  TENANT  SHALL BE AN AVERAGE OF THE PREVIOUS FIVE
YEARS OF ONE-YEAR RENT INCREASES ON  STABILIZED  APARTMENTS,  AS  ESTAB-
LISHED BY THE RENT GUIDELINES BOARD.  HOWEVER, NO SUCH INCREASE PURSUANT
TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE AUTHORIZED UNTIL THE EXPI-
RATION  OF  TWELVE MONTHS FROM THE EFFECTIVE DATE OF ANY RENT ADJUSTMENT
AUTHORIZED PURSUANT TO  REGULATIONS  ADOPTED  FOR  RENT  ADJUSTMENTS  TO
COMPENSATE FOR UNAVOIDABLE INCREASED COSTS OF OPERATIONS AS PROVIDED FOR
UNDER THIS LAW.
  (C)  MAXIMUM  RATES  OF  RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION  SUBJECT  TO  THIS  LAW
WITHIN  A  BOARD'S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER  OR  OTHER
MODIFICATION.
  (D)  NOTHING  CONTAINED  IN  THIS  PARAGRAPH  SHALL ALTER, RESTRICT OR
IMPAIR AN OWNER'S RIGHT TO ESTABLISH  THE  INITIAL  REGULATED  RENT  FOR
ACCOMMODATIONS SUBJECT TO THIS LAW WHICH BECOME VACANT.

A. 7881                             4

  S  5. This act shall take effect immediately; provided that the amend-
ments to section 26-405 of the city rent and rehabilitation law made  by
sections  one  and two of this act shall remain in full force and effect
only as long as  the  public  emergency  requiring  the  regulation  and
control  of  residential  rents  and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing  rent  control
act;  and  provided  that  the  amendments to section 4 of the emergency
housing rent control law made by section four of this act  shall  expire
on the same date as such law expires and shall not affect the expiration
of  such law as provided in subdivision 2 of section 1 of chapter 274 of
the laws of 1946.