senate Bill S3171

2013-2014 Legislative Session

Reduces the amount of maximum rent increase collectible in one year

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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 31, 2013 referred to housing, construction and community development

S3171 - Bill Details

Current Committee:
Law Section:
New York City Administrative Code
Laws Affected:
Amd ยง26-405, NYC Ad Cd
Versions Introduced in Previous Legislative Sessions:
2011-2012: S903
2009-2010: S6138

S3171 - Bill Texts

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Reduces the amount of maximum rent increase collectible in one year.

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BILL NUMBER:S3171

TITLE OF BILL: An act to amend the administrative code of the city of
New York, in relation to reducing the amount of maximum rent increase
collectible in one year

PURPOSE OR GENERAL IDEA OF BILL: This bill reduces the maximum annual
rent increase for rent controlled apartments in New York City from 7%
percent to 3 percent.

SUMMARY OF SPECIFIC PROVISIONS: Paragraph 5 of subdivision a of Section
26-405 of the New York City Rent Control Law is amended to limit auto-
matic annual rent increases for rent controlled apartments to three
percent.

JUSTIFICATION: The New York City Rent Control Law was amended in 1971
to create the Maximum Base Rent system of automatic annual rent
increases. Maximum Base Rents (MBRs) are established every two years by
the agency administering rent controls. The MBRs establish ceilings for
rent increases. Within the MBR ceilings, rents are increased every year
by 7% percent over the previous maximum collectible rent. Other addi-
tional rent increases are permitted for such things as major capital
improvements or the installation of additional equipment in an apart-
ment. The MBR system was created during a period of unusually high
national inflation. The annualized inflation rate in the United States
during the period 1970-1980 was 7.81%. In contrast, the annualized
inflation rate during the years 2000-2008 was 2.83%. This legislation is
necessary to bring the automatic annual rent increases for rent
controlled apartments back into a reasonable, relationship with current
rates of inflation. Annual 7% percent rent increases far exceed the rent
increases authorized in New York City during recent years for the paral-
lel rent stabilization program. In addition, rent controlled apartments
are generally occupied by elderly residents living on fixed incomes. The
outdated MBR system's automatic 7 1/2 percent annual rent increases are
a major hardship for. such tenants and are no longer justified by
current costs for the maintenance and operation of their housing.

LEGISLATIVE HISTORY: 2009-2010: S.6138

EFFECTIVE DATE: Immediately, with provisions.

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

                                  3171

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by  Sen. KRUEGER -- 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, in
  relation to reducing the amount of maximum rent  increase  collectible
  in one year

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

  Section 1. Paragraph 5 of subdivision  a  of  section  26-405  of  the
administrative  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] THREE PERCENT increase 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] THREE PERCENT over the previous rent  and  additional  annual
rents  shall  not exceed [seven and one-half percentum] THREE PERCENT of
the rent paid during the previous year. Notwithstanding any of the fore-
going  limitations  in  this  paragraph  five,  maximum  rent  shall  be
increased  if  ordered by the agency pursuant to subparagraphs (d), (e),
(f), (g), (h), (i), (k), (l), (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 paragraph one of subdi-
vision  g  of  this section shall be excluded from the maximum rent when
computing the [seven and  one-half  percentum]  THREE  PERCENT  increase
authorized  by  this  paragraph  five.  Where a housing accommodation is

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00871-01-3

S. 3171                             2

vacant on January first, nineteen hundred seventy-two, or becomes vacant
thereafter by voluntary surrender of  possession  by  the  tenants,  the
maximum rent established for such accommodations may be collected.
  S  2. This act shall take effect immediately; provided that the amend-
ments to section 26-405 of the city rent and rehabilitation law made  by
section  one  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.

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