senate Bill S1493

2013-2014 Legislative Session

Requires the cost of major capital improvements to be recovered through a monthly surcharge on rents

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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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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

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S1493 - Bill Details

See Assembly Version of this Bill:
A5373
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Amd §§26-405 & 26-511, NYC Ad Cd; amd §6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S523A, A2459A
2009-2010: S745A, A1928

S1493 - Bill Texts

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Establishes a methodology for determining major capital improvements (MCI) rent surcharges; provides that such MCI shall be calculated as a rent surcharge and shall not become part of the base legal regulated rent by which rent increases are calculated, and requires the amount thereof to be separately designated and billed as such; codifies current practices regarding the annual 6% cap on MCI increases and the methodology for determining MCI surcharges based on the number of rooms; requires that rent surcharges authorized for major capital improvements shall cease when the cost of the improvement has been recovered.

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BILL NUMBER:S1493

TITLE OF BILL:
An act
to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen
seventy-four and the emergency housing
rent control law, in relation to
extending the length of time over which major capital
improvement expenses may be recovered

PURPOSE OR GENERAL IDEA OF THE BILL:
Expenses for major capital improvements in rental housing are
currently recovered over seven years in calculating the permissible
monthly rent increase. This bill codifies the MCI as a surcharge to
the legal regulated rent which is separately designated and billed as
such and mandates that the authorized surcharge for MCI's ceases
after the cost of the improvement is recouped.

SUMMARY OF SPECIFIC PROVISIONS:
Establishes a methodology fox determining MCI rent surcharges based on
seven years. MCI's are calculated as a rent surcharge and do not
become part of the base legal regulated rent by which rent increases
are calculated, and are separately designated and billed as such. The
legislation also codifies current practices regarding the annual 64
cap on MCI increases and the methodology for determining MCI
surcharges based on number of rooms. Furthermore, the bill would
require that the rent surcharges authorized for major capital
improvements cease when the cost of the improvement has been recovered.

JUSTIFICATION:
Since the actual cost of the improvement is recovered after seven
years of increased rent collection, this ruling means that tenants
are forced to continue to pay for improvements long after costs have
been fully recovered, and even after they have outlived their useful
life. In addition, most MCI's, such as window replacement or heating
system improvements, create energy savings that further increase the
profitability of MCI's. This bill seeks to balance the conflicting
concerns of maintaining affordable housing and insuring adequate
incentives for investment in MCI's in order to preserve and improve
our housing stock. Since the court permits MCI's to be collected in
perpetuity, landlords are allowed to recoup an amount well beyond
their actual costs and are ensured a reasonable return on their
investment.

LEGISLATIVE HISTORY:
2009-2010: S.745-A/A.1928
2011-2012: S.523-A/A.24.59-A

FISCAL IMPACT: None.

EFFECTIVE DATE:
Immediately, with provisions.


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

                                  1493

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. KRUEGER, AVELLA, HASSELL-THOMPSON, HOYLMAN, MONTGOM-
  ERY,  PERALTA,  PERKINS,  SERRANO,  STAVISKY,  STEWART-COUSINS -- 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, the
  emergency tenant protection act of nineteen seventy-four and the emer-
  gency housing rent control law, in relation to extending the length of
  time over which major capital improvement expenses may be recovered

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

  Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990,  is amended to read as follows:
  (g) (I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT AUTHORIZED PURSU-
ANT  TO  ITEM  (II)  OF THIS SUBPARAGRAPH SHALL CEASE WHEN THE OWNER HAS
RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT;
  (II) There has been since July  first,  nineteen  hundred  seventy,  a
major  capital  improvement [required for the operation, preservation or
maintenance of the structure. An adjustment under this subparagraph  (g)
shall  be  in  an amount sufficient to amortize the cost of the improve-
ments pursuant to this  subparagraph  (g)  over  a  seven-year  period];
PROVIDED  THAT  THE COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED
DEPRECIABLE UNDER THE INTERNAL REVENUE CODE AND  SUCH  IMPROVEMENTS  ARE
REQUIRED  FOR  THE  OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUC-
TURE. THE INCREASE PERMITTED  FOR  SUCH  CAPITAL  IMPROVEMENT  SHALL  BE
COLLECTED  AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPA-
RATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY  ANY
OTHER  ADJUSTMENT  TO  THE MAXIMUM RENT. THE SURCHARGE ALLOCABLE TO EACH
APARTMENT SHALL BE AN AMOUNT  EQUAL  TO  THE  COST  OF  THE  IMPROVEMENT
DIVIDED BY  EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00868-01-3

S. 1493                             2

AND  THEN  MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED
THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT IN ANY ONE  YEAR  MAY  NOT
EXCEED  AN  AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY
THE  OWNER  FOR  SUCH  APARTMENT  AS  SET FORTH IN THE SCHEDULE OF GROSS
RENTS.  ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED  FORWARD  AND
COLLECTED  IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDI-
TIONAL SIX PERCENT IN ANY ONE YEAR  PERIOD  UNTIL  THE  TOTAL  SURCHARGE
EQUALS  THE  AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT
LIMITATION DID NOT APPLY; or
  S 2. Subparagraph (k) of paragraph  1  of  subdivision  g  of  section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990,  is amended to read as follows:
  (k)  The  landlord has incurred, since January first, nineteen hundred
seventy, in connection with and in addition to a concurrent major  capi-
tal  improvement  pursuant  to subparagraph (g) of this paragraph, other
expenditures to improve, restore or preserve the quality of  the  struc-
ture.  An  adjustment  under  this subparagraph shall be granted only if
such improvements represent an expenditure equal to  at  least  ten  per
centum of the total operating and maintenance expenses for the preceding
year.  An adjustment under this subparagraph shall be in addition to any
adjustment granted for the  concurrent  major  capital  improvement  and
shall  be  [in an amount sufficient to amortize the cost of the improve-
ments pursuant to this subparagraph over a seven-year    period]  IMPLE-
MENTED IN THE SAME MANNER AS SUCH MAJOR CAPITAL IMPROVEMENT AS A FURTHER
SURCHARGE TO THE MAXIMUM RENT.
  S 3. Paragraph 6 of subdivision c of section 26-511 of the administra-
tive code of the city of New York, as amended by chapter 116 of the laws
of 1997,  is amended to read as follows:
  (6)  provides  criteria whereby the commissioner may act upon applica-
tions by owners for increases in  excess  of  the  level  of  fair  rent
increase  established under this law provided, however, that such crite-
ria shall provide [(a)] as to hardship applications, for a finding  that
the level of fair rent increase is not sufficient to enable the owner to
maintain  approximately  the same average annual net income (which shall
be computed without regard to debt service, financing costs  or  manage-
ment  fees)  for the three year period ending on or within six months of
the date of an application pursuant to such criteria  as  compared  with
annual  net income, which prevailed on the average over the period nine-
teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
first three years of operation if the building was completed since nine-
teen  hundred  sixty-eight  or  for the first three fiscal years after a
transfer of title to a new owner provided the new owner can establish to
the satisfaction of the commissioner that he or she  acquired  title  to
the  building as a result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite records for the  fiscal
years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in  title  and
further  provided that the new owner can provide financial data covering
a minimum of six years under his or  her  continuous  and  uninterrupted
operation  of  the building to meet the three year to three year compar-
ative test periods herein provided[; and (b) as to  completed  building-
wide  major  capital  improvements, for a finding that such improvements
are deemed depreciable under the Internal Revenue Code and that the cost
is to be amortized over a seven-year period, based  upon  cash  purchase
price  exclusive  of  interest  or  service  charges].   Notwithstanding
anything to the contrary contained herein, no hardship increase  granted

S. 1493                             3

pursuant  to this paragraph shall, when added to the annual gross rents,
as determined by the commissioner, exceed the sum  of,  (i)  the  annual
operating  expenses, (ii) an allowance for management services as deter-
mined  by  the  commissioner,  (iii) actual annual mortgage debt service
(interest and amortization) on its indebtedness to  a  lending  institu-
tion,  an  insurance company, a retirement fund or welfare fund which is
operated under the supervision of the banking or insurance laws  of  the
state  of  New  York  or  the United States, and (iv) eight and one-half
percent of that portion of the fair market value of the  property  which
exceeds  the  unpaid  principal  amount  of  the  mortgage  indebtedness
referred to in subparagraph (iii) of this paragraph. Fair  market  value
for  the  purposes of this paragraph shall be six times the annual gross
rent. The collection of any increase in  the  stabilized  rent  for  any
apartment pursuant to this paragraph shall not exceed six percent in any
year from the effective date of the order granting the increase over the
rent  set  forth  in the schedule of gross rents, with collectability of
any dollar excess above said sum to be spread forward in similar  incre-
ments  and  added to the stabilized rent as established or set in future
years;
  S 4. Subdivision c of section 26-511 of the administrative code of the
city of New York is amended by adding two new paragraphs 6-b and 6-c  to
read as follows:
  (6-B) PROVIDES CRITERIA WHEREBY THE COMMISSIONER MAY ACT UPON APPLICA-
TION  BY  OWNERS  FOR  INCREASES  IN  EXCESS  OF  THE LEVEL OF FAIR RENT
INCREASE ESTABLISHED UNDER THIS LAW PROVIDED, HOWEVER, THAT SUCH  CRITE-
RIA  SHALL  PROVIDE AS TO COMPLETED BUILDING-WIDE MAJOR CAPITAL IMPROVE-
MENTS, FOR A FINDING THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS  ARE  REQUIRED  FOR  THE
OPERATION,  PRESERVATION  OR  MAINTENANCE OF THE STRUCTURE. THE INCREASE
PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS  A  MONTHLY
SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
AND  BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL ADJUSTMENT
OF THE LEVEL OF FAIR RENT PROVIDED FOR UNDER SUBDIVISION  B  OF  SECTION
26-510  OF THIS LAW.  THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE
AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT DIVIDED  BY  EIGHTY-FOUR,
DIVIDED  BY  THE NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY
THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLO-
CABLE TO ANY APARTMENT, IN ANY ONE YEAR MAY NOT EXCEED AN  AMOUNT  EQUAL
TO  SIX  PERCENT  OF  THE  MONTHLY  RENT COLLECTED BY THE OWNER FOR SUCH
APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS RENTS.  ANY EXCESS ABOVE
SAID SIX PERCENT SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE  YEARS
AS  A  FURTHER  SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY
ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE EQUALS  THE  AMOUNT  IT  WOULD
HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY.
  (6-C)  COLLECTION  OF  SURCHARGES  IN EXCESS OF THE LEVEL OF FAIR RENT
AUTHORIZED PURSUANT TO PARAGRAPH SIX-B OF THIS SUBDIVISION  SHALL  CEASE
WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT.
  S 5. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
576  of  the  laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as amended by chapter 749 of the  laws  of
1990, is amended to read as follows:
  (3)  (I)  COLLECTION  OF SURCHARGES IN ADDITION TO THE LEGAL REGULATED
RENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (II) OF  THIS  PARAGRAPH  SHALL
CEASE  WHEN  THE  OWNER  HAS  RECOVERED  THE  COST  OF THE MAJOR CAPITAL
IMPROVEMENT;

S. 1493                             4

  (II) there has been since January first, nineteen hundred seventy-four
a major capital improvement [required for the operation, preservation or
maintenance of the structure.  An adjustment under this paragraph  shall
be  in  an  amount  sufficient  to amortize the cost of the improvements
pursuant  to this paragraph over a seven-year period]; PROVIDED THAT THE
COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED  DEPRECIABLE  UNDER
THE  INTERNAL  REVENUE  CODE  AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE.   THE  INCREASE
PERMITTED  FOR  SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY
SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
AND BILLED AS SUCH AND SHALL  NOT  BE  COMPOUNDED  BY  ANY  ANNUAL  RENT
ADJUSTMENT  AUTHORIZED  BY THE RENT GUIDELINES BOARD UNDER THIS ACT. THE
SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT  EQUAL  TO  THE
COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF
ROOMS  IN  THE  BUILDING,  AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN
SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLOCABLE TO  ANY  APARTMENT
IN  ANY  ONE  YEAR  MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE
MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET  FORTH  IN
THE SCHEDULE OF GROSS RENTS.  ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE
CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT
TO  EXCEED  AN  ADDITIONAL  SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE
TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN  IF  THE  AFOREMEN-
TIONED SIX PERCENT LIMITATION DID NOT APPLY, or
  S 6. The second undesignated paragraph of paragraph (a) of subdivision
4  of  section  4  of  chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as amended by section 25 of  part  B
of chapter 97 of the laws of 2011, is amended to read as follows:
  No application for adjustment of maximum rent based upon a sales price
valuation  shall  be filed by the landlord under this subparagraph prior
to six months from the date of such sale of the property.  In  addition,
no  adjustment  ordered  by  the  commission based upon such sales price
valuation shall be effective prior to one year from  the  date  of  such
sale.  Where,  however,  the assessed valuation of the land exceeds four
times the assessed valuation of the buildings  thereon,  the  commission
may determine a valuation of the property equal to five times the equal-
ized  assessed  valuation  of  the  buildings,  for the purposes of this
subparagraph. The commission may make a determination that the valuation
of the property is an amount  different  from  such  equalized  assessed
valuation  where  there  is  a  request for a reduction in such assessed
valuation currently pending; or where there has been a reduction in  the
assessed valuation for the year next preceding the effective date of the
current  assessed  valuation  in effect at the time of the filing of the
application. Net annual return shall be the amount by which  the  earned
income  exceeds  the operating expenses of the property, excluding mort-
gage interest and amortization, and excluding  allowances  for  obsoles-
cence  and  reserves, but including an allowance for depreciation of two
per centum of the value of the buildings exclusive of the land,  or  the
amount  shown  for  depreciation of the buildings in the latest required
federal income tax return, whichever is lower; provided,  however,  that
(1)  no  allowance  for  depreciation of the buildings shall be included
where the buildings have been fully depreciated for federal  income  tax
purposes  or  on the books of the owner; or (2) the landlord who owns no
more than four rental units within the state has not been fully  compen-
sated  by  increases  in  rental income sufficient to offset unavoidable
increases in property taxes, fuel, utilities, insurance and repairs  and
maintenance, excluding mortgage interest and amortization, and excluding

S. 1493                             5

allowances  for  depreciation,  obsolescence  and  reserves,  which have
occurred since the federal date determining the maximum rent or the date
the property was acquired by the present owner, whichever is  later;  or
(3) the landlord operates a hotel or rooming house or owns a cooperative
apartment  and  has  not  been  fully compensated by increases in rental
income from the controlled housing accommodations sufficient  to  offset
unavoidable increases in property taxes and other costs as are allocable
to  such controlled housing accommodations, including costs of operation
of such hotel or rooming house,  but  excluding  mortgage  interest  and
amortization,  and  excluding  allowances for depreciation, obsolescence
and reserves, which have occurred since the federal date determining the
maximum rent or the date the landlord commenced  the  operation  of  the
property, whichever is later; or (4) the landlord and tenant voluntarily
enter into a valid written lease in good faith with respect to any hous-
ing  accommodation,  which lease provides for an increase in the maximum
rent not in excess of fifteen per centum and for a term of not less than
two years, except that where such lease  provides  for  an  increase  in
excess  of  fifteen  per  centum,  the  increase  shall be automatically
reduced to fifteen per centum; or (5) the landlord and tenant by  mutual
voluntary  written agreement agree to a substantial increase or decrease
in dwelling space or a change in the services, furniture, furnishings or
equipment provided in the housing accommodations; provided that an owner
shall be entitled to a rent increase where there has been a  substantial
modification  or  increase  of  dwelling  space  or  an  increase in the
services, or installation of new equipment or improvements or new furni-
ture or furnishings provided in or to a tenant's housing  accommodation.
The  permanent  increase  in  the  maximum rent for the affected housing
accommodation shall be one-fortieth, in the  case  of  a  building  with
thirty-five  or  fewer  housing  accommodations, or one-sixtieth, in the
case of a building with more  than  thirty-five  housing  accommodations
where  such  permanent increase takes effect on or after September twen-
ty-fourth, two thousand eleven, of the total cost incurred by the  land-
lord  in  providing  such  modification  or  increase in dwelling space,
services, furniture, furnishings or equipment,  including  the  cost  of
installation,  but  excluding  finance  charges provided further that an
owner who is entitled to a rent increase pursuant to this  clause  shall
not  be  entitled to a further rent increase based upon the installation
of similar equipment, or new furniture or furnishings within the  useful
life  of  such new equipment, or new furniture or furnishings. The owner
shall give written notice to  the  commission  of  any  such  adjustment
pursuant to this clause; or (6) there has been, since March first, nine-
teen  hundred  fifty,  an  increase  in  the rental value of the housing
accommodations as a result of a substantial rehabilitation of the build-
ing or housing accommodation therein which materially adds to the  value
of  the  property  or  appreciably prolongs its life, excluding ordinary
repairs,  maintenance  and  replacements;  or  (7)  (I)  COLLECTION   OF
SURCHARGES  TO THE MAXIMUM RENT AUTHORIZED PURSUANT TO ITEM (II) OF THIS
CLAUSE SHALL CEASE WHEN THE OWNER HAS RECOVERED THE COST  OF  THE  MAJOR
CAPITAL  IMPROVEMENT;  (II)  there  has been since March first, nineteen
hundred fifty, a major capital improvement [required for the  operation,
preservation or maintenance of the structure]; PROVIDED THAT THE COMMIS-
SIONER  FINDS  THAT  SUCH  IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER THE
INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE  OPERA-
TION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE PERMIT-
TED  FOR  SUCH  CAPITAL  IMPROVEMENT  SHALL  BE  COLLECTED  AS A MONTHLY
SURCHARGE TO THE MAXIMUM RENT. IT SHALL  BE  SEPARATELY  DESIGNATED  AND

S. 1493                             6

BILLED  AS  SUCH  AND SHALL NOT BE COMPOUNDED BY ANY OTHER ADJUSTMENT TO
THE MAXIMUM RENT. THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE  AN
AMOUNT  EQUAL  TO  THE  COST OF THE IMPROVEMENT DIVIDED BY  EIGHTY-FOUR,
DIVIDED  BY  THE NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY
THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLO-
CABLE TO ANY APARTMENT IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO
SIX PERCENT OF THE MONTHLY RENT COLLECTED BY THE OWNER FOR  SUCH  APART-
MENT AS SET FORTH IN THE SCHEDULE OF GROSS RENTS.  ANY EXCESS ABOVE SAID
SIX  PERCENT SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A
FURTHER SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX  PERCENT  IN  ANY  ONE
YEAR  PERIOD  UNTIL  THE TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE
BEEN IF THE AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY; or  (8)
there  has been since March first, nineteen hundred fifty, in structures
containing more than four  housing  accommodations,  other  improvements
made  with  the  express consent of the tenants in occupancy of at least
seventy-five per centum of the housing accommodations, provided,  howev-
er, that no adjustment granted hereunder shall exceed fifteen per centum
unless  the  tenants  have agreed to a higher percentage of increase, as
herein provided; or (9) there has  been,  since  March  first,  nineteen
hundred fifty, a subletting without written consent from the landlord or
an  increase in the number of adult occupants who are not members of the
immediate family of the tenant, and the landlord has  not  been  compen-
sated  therefor  by  adjustment of the maximum rent by lease or order of
the commission or pursuant to the federal act; or (10) the  presence  of
unique  or  peculiar circumstances materially affecting the maximum rent
has resulted in a maximum rent which is  substantially  lower  than  the
rents  generally  prevailing  in the same area for substantially similar
housing accommodations.
  S 7. 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  so  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 further that the amendments to section 26-511  of  the
rent  stabilization  law of nineteen hundred sixty-nine made by sections
three and 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
under section 26-520 of such law, as from  time  to  time  amended;  and
provided further that the amendment to section 6 of the emergency tenant
protection act of nineteen seventy-four made by section five 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,  as from time to time amended; and further provided
that the amendment to section 4 of the emergency  housing  rent  control
law  made  by  section  six 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.

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