senate Bill S1024

2013-2014 Legislative Session

Limits the amount of rent increase after the vacancy of a housing accommodation

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to housing, construction and community development
Jan 09, 2013 referred to housing, construction and community development

Co-Sponsors

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S1024 - Bill Details

Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Amd §26-511, NYC Ad Cd; amd §10, Emerg Ten Prot Act of 1974
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2341
2009-2010: S6084

S1024 - Bill Texts

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Limits the amount of rent increase after the vacancy of a housing accommodation.

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BILL NUMBER:S1024

TITLE OF BILL: An act to amend the administrative code of the city of
New York and the emergency tenant protection act of nineteen
seventy-four, in relation to limiting rent increase after vacancy of a
housing accommodation

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to expand tenant protections by reducing
the percentage by which rent may be increased upon vacancy.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would decrease from twenty percent to ten percent the amount
a landlord could increase rent upon vacancy and also prohibit a
landlord from taking more than one increase in anyone calendar year.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
This bill would amend paragraph 5-a of subdivision c of section 26-511
of the administrative code of the city of New York, and subdivision
(a-1) of section 10 of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy
four.

JUSTIFICATION:
There continues to be an ongoing housing emergency in many areas of
New York State, and especially in New York city. According to the Rent
Guidelines Board report "Housing NYC: Rents, Markets and Trends 2000",
while New York city experienced a net gain of total units from
1996-1999, the number of rental units declined. In fact, the report
states that vacant available rentals fell by almost 17,000 units, or
20.7%, over the last three years, lowering the vacancy rate from 4.01%
in 1996 to 3.19% in 1999. Limiting the amount by which rent may be
increased upon vacancy will help keep units in the rent regulation
system and thus preserve these units in the affordable housing stock.

PRIOR LEGISLATIVE HISTORY:
A.4213 - 2005-06 Session
A.10846 - 2003-04 Session
A.2894 - 2007-08 Session
2009/10 - Senate & Assembly Referred to Housing
2011/12 - S2341

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.

EFFECTIVE DATE:
Immediately, with provisions.

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

                                  1024

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens. SERRANO, AVELLA, PERALTA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Housing,
  Construction and Community Development

AN ACT to amend the administrative code of the city of New York and  the
  emergency  tenant protection act of nineteen seventy-four, in relation
  to limiting rent increase after vacancy of a housing accommodation

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

  Section  1.  Paragraph  5-a  of subdivision c of section 26-511 of the
administrative code of the city of New York, as amended by section 7  of
part B of chapter 97 of the laws of 2011, is amended to read as follows:
  (5-a)  provides  that,  notwithstanding any provision of this chapter,
the legal regulated rent for any vacancy lease entered  into  after  the
effective  date  of  this  paragraph shall be as hereinafter provided in
this paragraph. The previous  legal  regulated  rent  for  such  housing
accommodation  shall  be  increased by the following: (i) if the vacancy
lease is for a term of two years, [twenty] TEN percent of  the  previous
legal  regulated rent; or (ii) if the vacancy lease is for a term of one
year the increase shall be [twenty] TEN percent of  the  previous  legal
regulated  rent  less  an amount equal to the difference between (a) the
two year renewal lease guideline promulgated by the guidelines board  of
the  city  of  New York applied to the previous legal regulated rent and
(b) the one year renewal lease guideline promulgated by  the  guidelines
board  of  the  city of New York applied to the previous legal regulated
rent. In addition, if the legal regulated rent was  not  increased  with
respect  to  such housing accommodation by a permanent vacancy allowance
within eight years prior to a vacancy lease executed  on  or  after  the
effective  date  of  this  paragraph,  the  legal  regulated rent may be
further increased by an amount  equal  to  the  product  resulting  from
multiplying  such  previous  legal  regulated  rent by six-tenths of one

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00531-01-3

S. 1024                             2

percent and further multiplying the amount of  rent  increase  resulting
therefrom by the greater of (A) the number of years since the imposition
of  the  last  permanent  vacancy  allowance, or (B) if the rent was not
increased  by  a  permanent vacancy allowance since the housing accommo-
dation became subject to this chapter, the number  of  years  that  such
housing accommodation has been subject to this chapter. Provided that if
the  previous  legal  regulated rent was less than three hundred dollars
the total increase shall be as calculated above plus one hundred dollars
per month. Provided, further, that if the previous legal regulated  rent
was at least three hundred dollars and no more than five hundred dollars
in  no event shall the total increase pursuant to this paragraph be less
than one hundred dollars per month. Such increase shall be  in  lieu  of
any allowance authorized for the one or two year renewal component ther-
eof, but shall be in addition to any other increases authorized pursuant
to  this  chapter  including  an  adjustment  based upon a major capital
improvement, or a substantial modification or increase of dwelling space
or services, or installation of new equipment  or  improvements  or  new
furniture  or  furnishings  provided  in or to the housing accommodation
pursuant to this section. The increase authorized in this paragraph  may
not  be  implemented  more  than one time in any calendar year, notwith-
standing the number of vacancy leases entered into in such year.
  S 2. Subdivision (a-1) of section 10 of section 4 of  chapter  576  of
the  laws  of  1974, constituting the emergency tenant protection act of
nineteen seventy-four, as amended by section 8 of part B of  chapter  97
of the laws of 2011, is amended to read as follows:
  (a-1)  provides  that,  notwithstanding any provision of this act, the
legal regulated rent for any vacancy lease entered into after the effec-
tive date of this subdivision shall be as hereinafter set  forth.    The
previous  legal  regulated  rent for such housing accommodation shall be
increased by the following: (i) if the vacancy lease is for  a  term  of
two years, [twenty] TEN percent of the previous legal regulated rent; or
(ii)  if  the vacancy lease is for a term of one year the increase shall
be [twenty] TEN percent of the previous legal  regulated  rent  less  an
amount  equal  to  the difference between (a) the two year renewal lease
guideline promulgated by the guidelines board of the county in which the
housing accommodation is located applied to the previous legal regulated
rent and (b) the one year renewal lease  guideline  promulgated  by  the
guidelines  board  of  the  county in which the housing accommodation is
located applied to the previous legal regulated rent.  In  addition,  if
the  legal regulated rent was not increased with respect to such housing
accommodation by a permanent vacancy allowance within eight years  prior
to  a  vacancy  lease  executed  on  or after the effective date of this
subdivision, the legal regulated rent may be  further  increased  by  an
amount  equal  to  the  product resulting from multiplying such previous
legal regulated rent by six-tenths of one percent and further  multiply-
ing  the  amount  of rent increase resulting therefrom by the greater of
(A) the number of years since  the  imposition  of  the  last  permanent
vacancy  allowance,  or (B) if the rent was not increased by a permanent
vacancy allowance since the housing accommodation became subject to this
act, the number of  years  that  such  housing  accommodation  has  been
subject  to this act. Provided that if the previous legal regulated rent
was less than three hundred dollars  the  total  increase  shall  be  as
calculated  above plus one hundred dollars per month. Provided, further,
that if the previous legal regulated rent was  at  least  three  hundred
dollars  and  no  more  than  five hundred dollars in no event shall the
total increase pursuant to this subdivision be  less  than  one  hundred

S. 1024                             3

dollars  per  month.  Such  increase  shall  be in lieu of any allowance
authorized for the one or two year renewal component thereof, but  shall
be  in  addition  to any other increases authorized pursuant to this act
including  an  adjustment  based  upon a major capital improvement, or a
substantial modification or increase of dwelling space or  services,  or
installation  of  new  equipment  or  improvements  or  new furniture or
furnishings provided in or to  the  housing  accommodation  pursuant  to
section  six  of this act.   The increase authorized in this subdivision
may not be implemented more than one time in any calendar year, notwith-
standing the number of vacancy leases entered into in such year.
  S 3. This act shall take effect immediately; provided that the  amend-
ments  to  section  26-511  of  the  rent  stabilization law of nineteen
hundred sixty-nine made by section one of this act shall expire  on  the
same  date  as  such  law expires and shall not affect the expiration of
such law as provided under section 26-520 of  such  law;  and  provided,
further,  that  the  amendments  to  section  4  of the emergency tenant
protection act of nineteen seventy-four made by section two of this  act
shall  expire  on the same date as such act expires and shall not affect
the expiration of such act as provided in section 17 of chapter  576  of
the laws of 1974.

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