senate Bill S1806

2013-2014 Legislative Session

Prohibits a county rent guidelines board from establishing rent adjustments for class A dwelling units based on certain considerations

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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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S1806 - Bill Details

See Assembly Version of this Bill:
A991
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Emergency Tenant Protection Act of 1974
Laws Affected:
Amd §4, Emerg Ten Prot Act of 1974; amd §26-510, NYC Ad Cd
Versions Introduced in 2011-2012 Legislative Session:
A7234A, S5603A

S1806 - Bill Texts

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Prohibits a county rent guidelines board from establishing rent adjustments for class A dwelling units based on the current rental cost of a unit or on the amount of time that has elapsed since another rent increase authorized was authorized.

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BILL NUMBER:S1806

TITLE OF BILL:
An act
to amend the emergency tenant protection act of nineteen seventy-four
and the administrative code of the city of New York, in relation to
prohibiting a county rent guidelines board from establishing rent
adjustments for class A dwelling units based on
certain considerations

PURPOSE OR GENERAL IDEA OF BILL:
To prohibit a county rent guidelines board from establishing rent
adjustments for class A dwelling units based on the current rental
cost of a unit or on the amount of time that has elapsed since
another rent increase authorized was authorized.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the opening paragraph of subdivision b 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 403 of
the laws of 1983.

Section 2 amends subdivision b of section 26-510 of the administrative
code of the city of New York.

Section 3 establishes the effective date.

JUSTIFICATION:
In 2008, New York city's Rent Guidelines Board unilaterally decided
that landlords of rent-subsidized apartments where the tenant was
paying less than $1000 monthly rent and had lived in the apartment
for more than six years were allowed to levy a surcharge on those
tenants' rents. Suit was brought by the Legal Aid society and in
January 2010, the Supreme Court of New York County declared that the
Rent Guidelines Board did not have authority to impose supplemental
rent increases on long-term tenants of apartments renting for less
than $1000 per month if not authorized by the legislature. In June
2010, the Appellate division followed suit, and upheld this ruling,
Shortly thereafter, on appeal by the Rent Guidelines Board, the New
York State Court of Appeals reversed both lower courts, and in Casado
v. Markus, decided that the Rent Guidelines Hoard had the authority
to grant supplemental increases in the absence of legislative
authorization. This bill will correct the Court of Appeal's decision
in Casado, which infringes upon the role of the legislature as the
sole authority to create new classes of housing accommodations and/or
create rent adjustments. It will also prohibit these supplemental
increases, which affect lower-income tenants
in what essentially amounts to a "poor tax."

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments


to section 4 of chapter 576 of the laws of 1974, constituting the
emergency tenant protection act of nineteen seventy four, made by
section one of this act, shall not affect the expiration of such
section and shall be deemed to expire therewith; and provided further
that the amendments to subdivision b of section 26-510 of the
administrative code of the city of New York made by section two of
this act, shall not affect the expiration of such subdivision and
shall be deemed to expire therewith.

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

                                  1806

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. ESPAILLAT, SQUADRON -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Housing,
  Construction and Community Development

AN ACT to amend the emergency tenant protection act of  nineteen  seven-
  ty-four  and  the  administrative  code  of  the  city of New York, in
  relation to prohibiting a county rent guidelines board from establish-
  ing rent adjustments for class  A  dwelling  units  based  on  certain
  considerations

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

  Section 1. The opening paragraph of subdivision  b  of  section  4  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
403 of the laws of 1983, is amended to read as follows:
  A county rent guidelines board shall establish annually guidelines for
rent adjustments which, at its sole discretion may be varied and differ-
ent for and within the several zones and jurisdictions of the board, and
in determining whether rents for housing accommodations as to  which  an
emergency  has  been  declared  pursuant  to this act shall be adjusted,
shall consider among other things (1)  the  economic  condition  of  the
residential  real  estate  industry  in the affected area including such
factors as the prevailing and projected (i) real estate taxes and  sewer
and  water  rates,  (ii)  gross  operating  maintenance costs (including
insurance rates, governmental fees, cost of fuel and labor costs), (iii)
costs and availability of financing (including effective rates of inter-
est), (iv) over-all supply of housing accommodations and over-all vacan-
cy rates, (2) relevant data from  the  current  and  projected  cost  of
living indices for the affected area, (3) such other data as may be made
available to it. As soon as practicable after its creation and thereaft-
er not later than July first of each year, a rent guidelines board shall

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05027-01-3

S. 1806                             2

file  with the state division of housing and community renewal its find-
ings for the preceding calendar year, 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 accommodation subject to this act,
authorized for leases or other rental agreements commencing  during  the
next succeeding twelve months. The standards for rent adjustments may be
applicable  for  the  entire  county  or may be varied according to such
zones or jurisdictions within such county as the board  finds  necessary
to  achieve  the purposes of this subdivision.  A COUNTY RENT GUIDELINES
BOARD SHALL NOT ESTABLISH ANNUAL GUIDELINES FOR RENT  ADJUSTMENTS  BASED
ON  THE  CURRENT RENTAL COST OF A UNIT OR ON THE AMOUNT OF TIME THAT HAS
ELAPSED SINCE ANOTHER RENT INCREASE  WAS  AUTHORIZED  PURSUANT  TO  THIS
CHAPTER.
  S  2.    Subdivision b of section 26-510 of the administrative code of
the city of New York is amended to read as follows:
  b. The rent guidelines board shall establish annually  guidelines  for
rent  adjustments, and in determining whether rents for housing accommo-
dations subject to the  emergency  tenant  protection  act  of  nineteen
seventy-four  or  this law shall be adjusted shall consider, among other
things (1) the economic condition of the residential real estate  indus-
try  in  the  affected area including such factors as the prevailing and
projected (i) real estate taxes and sewer and water  rates,  (ii)  gross
operating  maintenance  costs  (including  insurance rates, governmental
fees, cost of fuel and labor costs), (iii)  costs  and  availability  of
financing  (including effective rates of interest), (iv) over-all supply
of housing accommodations and over-all vacancy rates, (2) relevant  data
from  the  current and projected cost of living indices for the affected
area, (3) such other data as may be made available to it. Not later than
July first of each year, the rent guidelines board shall file  with  the
city  clerk  its  findings  for  the  preceding calendar year, 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, authorized for leases or other rental agreements
commencing on the next succeeding October first  or  within  the  twelve
months thereafter. Such findings and statement shall be published in the
City  Record.    THE  RENT  GUIDELINES  BOARD SHALL NOT ESTABLISH ANNUAL
GUIDELINES FOR RENT ADJUSTMENTS BASED ON THE CURRENT RENTAL  COST  OF  A
UNIT  OR  ON  THE  AMOUNT  OF  TIME  THAT HAS ELAPSED SINCE ANOTHER RENT
INCREASE WAS AUTHORIZED PURSUANT TO THIS TITLE.
  S 3. This act shall take effect immediately; provided that the  amend-
ments  to  section  4  of  section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act  of  nineteen  seventy-
four,  made  by section one of this act, shall not affect the expiration
of such section and shall be deemed to expire  therewith;  and  provided
further  that  the  amendments to subdivision b of section 26-510 of the
administrative code of the city of New York made by section two of  this
act,  shall  not  affect the expiration of such subdivision and shall be
deemed to expire therewith.

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