senate Bill S7673

2013-2014 Legislative Session

Prohibits the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement

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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
May 27, 2014 referred to housing, construction and community development

S7673 - Bill Details

See Assembly Version of this Bill:
A9776
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Emergency Tenant Protection Act of 1974
Laws Affected:
Amd §6, Emerg Ten Prot Act of 1974; amd §26-512, NYC Ad Cd

S7673 - Bill Texts

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Prohibits the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement.

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BILL NUMBER:S7673

TITLE OF BILL:
An act
to amend chapter 576 of the laws of 1974 constituting the
emergency tenant protection act of nineteen seventy-four
and the administrative code of the city
of New York, in relation to
prohibiting the collection of rent arrearages accruing prior to the date
of approval of an application for an adjustment in the legal regulated
rent based upon a major capital improvement

PURPOSE:

This bill prohibits the temporary retroactive rent increase
or surcharge prior to the approval of the MCI application for rent
stabilized apartments. Under current law, landlords are entitled to
collect a retroactive surcharge, which is the amount owed between the
effective date and the collectable date of the DHCR order granting
the MCI. If the application is approved, in addition to the increase
becoming a part of the tenants' base rent, the landlord is entitled
to collect the increase retroactively, between the "effective date"
and "collectable date," in the form of a temporary surcharge. The
rent increase (the surcharge and the base rent increase) cannot be
collected from the tenants until the application is approved, so the
surcharge is collected temporarily in addition to the increased base
rent after the collectable date. This bill would bringing rent
stabilized apartments in line with rent controlled apartments,
eliminating the retroactive temporary surcharge and allowing
landlords to begin collecting the increased base rent upon the
collectable date or the date the application is approved.

SUMMARY OF PROVISIONS:

Section 1 amends Section 6 of section 4 of chapter 576 of the laws of
1974 and the administrative code of the city of New York by adding a
new subdivision prohibiting any adjustment in the legal regulated
rent based upon a major capital improvement until the date of
approval of the application.

Section 3 establishes the effective date.

JUSTIFICATION:

Under current law, in addition to the cost of a MCI
becoming part of the tenants' base rent, the landlord is entitled to
collect a temporary retroactive surcharge, which is the amount owed
between the effective date and the collectable date of the DHCR order
granting the MCI. This bill will eliminate the undue burden created
by the combined effect of the permanence of the increase and the
retroactive temporary surcharge by eliminating the temporary
surcharge. This will create consistency between rent stabilized and
rent controlled apartments, eliminating the retroactive temporary
surcharge and allowing landlords to begin collecting the increased
base rent upon the collectable date or the date the application is
approved.


LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  7673

                            I N  S E N A T E

                              May 27, 2014
                               ___________

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

AN ACT to amend chapter 576 of the laws of 1974 constituting  the  emer-
  gency  tenant protection act of nineteen seventy-four and the adminis-
  trative code of the city of New York, in relation to  prohibiting  the
  collection  of  rent arrearages accruing prior to the date of approval
  of an application for an adjustment in the legal regulated rent  based
  upon a major capital improvement

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

  Section 1. Section 6 of section 4 of chapter 576 of the laws  of  1974
constituting  the  emergency  tenant protection act of nineteen seventy-
four is amended by adding a new subdivision h to read as follows:
  H. NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION  TO  THE
CONTRARY,  ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A MAJOR
CAPITAL IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION
THEREFOR.  NO  INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO
THE DATE OF APPROVAL OF THE APPLICATION.
  S 2. Section 26-512 of the administrative code of the city of New York
is amended by adding a new subdivision g to read as follows:
  G. NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION  TO  THE
CONTRARY,  ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A MAJOR
CAPITAL IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION
THEREFOR.  NO  INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO
THE DATE OF APPROVAL OF THE APPLICATION.
  S 3. This act shall take effect immediately; provided that:
  a. the amendments to section 4 of the emergency tenant protection  act
of nineteen seventy-four made by section one 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;
and
  b. the amendments to section 26-512 of chapter 4 of title  26  of  the
administrative  code of the city of New York made by section two 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13277-03-4

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