S T A T E O F N E W Y O R K
________________________________________________________________________
799
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sen. SQUADRON -- 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
emergency housing rent control law, in relation to adjustment of maxi-
mum allowable rent
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section 15 of part B of chapter 97 of the laws of 2011, is amended to
read as follows:
(e) 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. An adjustment under this subparagraph shall
be equal to [one-fortieth, in the case of a building with thirty-five or
fewer housing accommodations, or] one-sixtieth[, in the case of a build-
ing with more than thirty-five housing accommodations where such adjust-
ment takes effect on or after September twenty-fourth, two thousand
eleven,] of the total cost incurred by the landlord 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 enti-
tled to a rent increase pursuant to this subparagraph shall not be enti-
tled 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00251-02-3
S. 799 2
give written notice to the city rent agency of any such adjustment
pursuant to this subparagraph; or
S 2. Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 16 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
(13) provides that an owner is 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 improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing accommodation, on written tenant consent to the rent increase. In
the case of a vacant housing accommodation, tenant consent shall not be
required.
(A) The permanent increase in the legal regulated 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-six-
tieth[, in the case of a building with more than thirty-five housing
accommodations where such permanent increase takes effect on or after
September twenty-fourth, two thousand eleven,] of the total cost
incurred by the landlord in providing such modification or increase in
dwelling space, services, furniture, furnishings or equipment, including
the cost of installation, but excluding finance charges.
(B) Provided further that an owner who is entitled to a rent increase
pursuant to this paragraph shall not be entitled to a further rent
increase based upon the installation of similar equipment, or new furni-
ture or furnishings within the useful life of such new equipment, or new
furniture or furnishings.
(C) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS PARAGRAPH UNTIL THE
LANDLORD HAS PROVIDED THE TENANT WITH A RIDER PURSUANT TO SUBDIVISION D
OF THIS SECTION, INCLUDING AN EXPLANATION OF HOW THE RENT IN THE VACANCY
LEASE HAS BEEN COMPUTED, AND THE SPECIFIC AMOUNTS OF ALL EXPENDITURES
SUPPORTING A RENT INCREASE UNDER THIS PARAGRAPH.
(D) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS PARAGRAPH WHERE THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL HAS DETERMINED THAT THE OWNER
IS NOT MAINTAINING ALL BUILDING-WIDE REQUIRED SERVICES OR ALL REQUIRED
SERVICES WITH RESPECT TO THE AFFECTED HOUSING ACCOMMODATION, OR WHERE
THERE ARE CURRENT HAZARDOUS VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE
OR FEDERAL LAW WHICH RELATE TO THE MAINTENANCE OF SUCH SERVICES.
(E) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE PURSUANT TO THIS PARAGRAPH THAT EXCEEDS TEN PERCENT OF THE
RENT CHARGED TO THE PREVIOUS TENANT, THE OWNER WILL FILE WITH THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL AN EXPLANATION OF HOW THE VACANCY
RENT WAS COMPUTED, AND ALL DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION
OF SUCH INCREASE, INCLUDING BUT NOT LIMITED TO, CANCELLED CHECKS,
INVOICES AND SIGNED CONTRACTS CONTEMPORANEOUSLY WITH THE IMPROVEMENTS
ALLEGED, AND CONTRACTOR'S AFFIDAVITS INDICATING THAT THE INSTALLATION
WAS COMPLETED AND PAID IN FULL. UPON RECEIPT OF ALL DOCUMENTS SUBMITTED
BY THE OWNER, AND AFTER GIVING THE TENANT NAMED IN SUCH VACANCY LEASE AN
OPPORTUNITY TO RESPOND, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
SHALL ISSUE AN ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN WHOLE OR
IN PART. BASED UPON SUCH DETERMINATION, THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL SHALL ORDER A REFUND TO THE TENANT EQUAL TO THE AMOUNT
COLLECTED IN EXCESS OF THE LEGAL REGULATED RENT APPROVED BY THE DIVISION
OF HOUSING AND COMMUNITY RENEWAL.
(F) IF THE OWNER FAILS TO ESTABLISH BY A PREPONDERANCE OF THE EVIDENCE
THAT THE OVERCHARGE WAS NOT WILLFUL, THE DIVISION OF HOUSING AND COMMU-
S. 799 3
NITY RENEWAL SHALL ORDER THE OWNER TO PAY TO THE TENANT AN ADDITIONAL
AMOUNT EQUAL TO THREE TIMES THE EXCESS CHARGED.
(G) THE NEXT ANNUAL REGISTRATION STATEMENT FILED FOR ANY HOUSING
ACCOMMODATION SUBJECT TO AN INCREASE UNDER THIS PARAGRAPH, WHETHER OR
NOT SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (E) OF THIS PARAGRAPH
SHALL CONTAIN A DETAILED BREAKDOWN OF THE COSTS OF ALL IMPROVEMENTS
UNDERLYING SUCH INCREASE.
S 3. Paragraph 2 of subdivision d of section 26-511 of the administra-
tive code of the city of New York is renumbered paragraph 3 and a new
paragraph 2 is added to read as follows:
(2) FOR VACANCY LEASES, SUCH RIDER SHALL ALSO INCLUDE A NOTICE OF THE
PRIOR LEGAL RENT, IF ANY, THAT WAS IN EFFECT IMMEDIATELY PRIOR TO THE
VACANCY, AN EXPLANATION OF HOW THE RENTAL AMOUNT HAS BEEN COMPUTED,
INCLUDING A DETAILED BREAKDOWN OF THE NATURE AND COST OF ANY IMPROVE-
MENTS UNDERLYING AN INCREASE UNDER PARAGRAPH THIRTEEN OF SUBDIVISION C
OF THIS SECTION, AND A STATEMENT THAT ANY INCREASE ABOVE THE PREVIOUS
RENT IS IN ACCORDANCE WITH ADJUSTMENTS PERMITTED BY LAW.
S 4. Paragraph 1 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 section 18 of part B of
chapter 97 of the laws of 2011, is amended to read as follows:
(1) 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 furniture or furnishings, provided in or to a
tenant's housing accommodation, on written tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. (A) The permanent increase in the legal regulated
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 twenty-fourth, two thousand eleven,] of the total cost
incurred by the landlord 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] (B) AN owner who is entitled to a rent increase pursu-
ant to this paragraph 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 furni-
ture or furnishings. (C) THE OWNER SHALL GIVE WRITTEN NOTICE TO THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE TENANT NAMED IN A
VACANCY LEASE ON FORMS PRESCRIBED BY THE DIVISION OF ANY SUCH ADJUSTMENT
PURSUANT TO THIS PARAGRAPH AND THE FAILURE TO PROVIDE SUCH WRITTEN
NOTICE AS PROVIDED HEREIN SHALL PRECLUDE THE COLLECTION OF ANY SUCH
ADJUSTMENT. SUCH NOTICE MUST INCLUDE A DETAILED BREAKDOWN OF THE NATURE
AND COST OF ANY IMPROVEMENTS UNDERLYING AN INCREASE IN RENT UNDER THIS
PARAGRAPH AND A STATEMENT THAT ANY INCREASE ABOVE THE PREVIOUS RENT IS
IN ACCORDANCE WITH ADJUSTMENTS PERMITTED BY LAW. (D) NO INCREASE SHALL
BE COLLECTIBLE UNDER THIS PARAGRAPH WHERE THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL HAS DETERMINED THAT THE OWNER IS NOT MAINTAINING ALL
BUILDING-WIDE REQUIRED SERVICES OR ALL REQUIRED SERVICES WITH RESPECT TO
THE AFFECTED HOUSING ACCOMMODATION, OR WHERE THERE ARE CURRENT HAZARDOUS
VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE OR FEDERAL LAW WHICH RELATE
TO THE MAINTENANCE OF SUCH SERVICES. (E) WITHIN THIRTY DAYS OF THE
SIGNING OF A VACANCY LEASE INCLUDING A RENT INCREASE PURSUANT TO THIS
PARAGRAPH THAT EXCEEDS TEN PERCENT OF THE RENT CHARGED TO THE PREVIOUS
S. 799 4
TENANT, THE OWNER WILL FILE WITH THE DIVISION AN EXPLANATION OF HOW THE
VACANCY RENT WAS COMPUTED, AND ALL DOCUMENTS NECESSARY TO SUPPORT THE
COLLECTION OF SUCH INCREASE, INCLUDING BUT NOT LIMITED TO, CANCELLED
CHECKS, INVOICES AND SIGNED CONTRACTS CONTEMPORANEOUSLY WITH THE
IMPROVEMENTS ALLEGED, AND CONTRACTOR'S AFFIDAVITS INDICATING THAT THE
INSTALLATION WAS COMPLETED AND PAID IN FULL. UPON RECEIPT OF ALL DOCU-
MENTS SUBMITTED BY THE OWNER AND AFTER GIVING THE TENANT NAMED IN THE
VACANCY LEASE AN OPPORTUNITY TO RESPOND, THE DIVISION SHALL ISSUE AN
ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART. BASED
UPON SUCH DETERMINATION, THE DIVISION SHALL ORDER A REFUND TO THE TENANT
EQUAL TO THE AMOUNT COLLECTED IN EXCESS OF THE LEGAL REGULATED RENT
APPROVED BY THE DIVISION. (F) IF THE OWNER FAILS TO ESTABLISH BY A
PREPONDERANCE OF THE EVIDENCE THAT THE OVERCHARGE WAS NOT WILLFUL, THE
DIVISION SHALL ORDER THE OWNER TO PAY TO THE TENANT AN ADDITIONAL AMOUNT
EQUAL TO THREE TIMES THE EXCESS CHARGED. (G) THE NEXT ANNUAL REGISTRA-
TION STATEMENT FILED FOR ANY HOUSING ACCOMMODATION SUBJECT TO AN
INCREASE UNDER THIS PARAGRAPH, WHETHER OR NOT SUBJECT TO THE PROVISIONS
OF SUBPARAGRAPH (E) OF THIS PARAGRAPH SHALL CONTAIN A DETAILED BREAKDOWN
OF THE COSTS OF ALL IMPROVEMENTS UNDERLYING SUCH INCREASE.
S 5. Clause 5 of the second undesignated paragraph of paragraph (a) of
subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti-
tuting 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:
(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 installa-
tion of new equipment or improvements or new furniture 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 build-
ing with more than thirty-five housing accommodations where such perma-
nent increase takes effect on or after September twenty-fourth, two
thousand eleven,] of the total cost incurred by the landlord in provid-
ing such modification or increase in dwelling space, services, furni-
ture, 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
S 6. Section 26-504.2 of the administrative code of the city of New
York is amended by adding a new subdivision c to read as follows:
C. NOTWITHSTANDING ANYTHING IN SUBDIVISION A OF THIS SECTION OR
SUBPARAGRAPH (K) OF PARAGRAPH TWO OF SUBDIVISION E OF SECTION 26-403 OF
THIS TITLE TO THE CONTRARY, THE FAILURE OF THE OWNER TO COMPLY WITH THE
REQUIREMENTS OF SUBDIVISION B OF THIS SECTION SHALL RESULT IN THE HOUS-
ING ACCOMMODATION REMAINING SUBJECT TO THE PROVISIONS OF THIS LAW OR THE
CITY RENT AND REHABILITATION LAW AT THE LAST REGULATED RENT UNTIL THE
OWNER COMPLIES WITH THE REQUIREMENTS OF SUBDIVISION B OF THIS SECTION.
S. 799 5
S 7. The opening paragraph of paragraph 13 of subdivision a of section
5 of section 4 of chapter 576 of the laws of 1974, constituting the
emergency tenant protection act of nineteen seventy-four is designated
subparagraph (i) and two new subparagraphs (ii) and (iii) are added to
read as follows:
(II) THE OWNER OF ANY HOUSING ACCOMMODATION THAT IS NOT SUBJECT TO
THIS ACT PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
GRAPH OR PARAGRAPH (N) OF SUBDIVISION TWO OF SECTION TWO OF THE EMERGEN-
CY HOUSING RENT CONTROL LAW SHALL GIVE WRITTEN NOTICE CERTIFIED BY SUCH
OWNER TO THE FIRST TENANT OF THAT HOUSING ACCOMMODATION AFTER SUCH HOUS-
ING ACCOMMODATION BECOMES EXEMPT FROM THE PROVISIONS OF THIS ACT OR THE
EMERGENCY HOUSING RENT CONTROL LAW. SUCH NOTICE SHALL CONTAIN THE LAST
REGULATED RENT, THE REASON THAT SUCH HOUSING ACCOMMODATION IS NOT
SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT CONTROL LAW, A CALCU-
LATION OF HOW EITHER THE RENTAL AMOUNT CHARGED WHEN THERE IS NO LEASE OR
THE RENTAL AMOUNT PROVIDED FOR IN THE LEASE HAS BEEN DERIVED SO AS TO
REACH TWO THOUSAND DOLLARS OR MORE PER MONTH, A STATEMENT THAT THE LAST
LEGAL REGULATED RENT OR THE MAXIMUM RENT MAY BE VERIFIED BY THE TENANT
BY CONTACTING THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, OR
ANY SUCCESSOR THERETO, AND THE ADDRESS AND TELEPHONE NUMBER OF SUCH
AGENCY, OR ANY SUCCESSOR THERETO. SUCH NOTICE SHALL BE SENT BY CERTIFIED
MAIL WITHIN THIRTY DAYS AFTER THE TENANCY COMMENCES OR AFTER THE SIGNING
OF THE LEASE BY BOTH PARTIES, WHICHEVER OCCURS FIRST OR SHALL BE DELIV-
ERED TO THE TENANT AT THE SIGNING OF THE LEASE. IN ADDITION, THE OWNER
SHALL SEND AND CERTIFY TO THE TENANT A COPY OF THE REGISTRATION STATE-
MENT FOR SUCH HOUSING ACCOMMODATION FILED WITH THE STATE DIVISION OF
HOUSING AND COMMUNITY RENEWAL INDICATING THAT SUCH HOUSING ACCOMMODATION
BECAME EXEMPT FROM THE PROVISIONS OF THIS ACT OR THE EMERGENCY HOUSING
RENT CONTROL LAW, WHICH FORM SHALL INCLUDE THE LAST REGULATED RENT, AND
SHALL BE SENT TO THE TENANT WITHIN THIRTY DAYS AFTER THE TENANCY
COMMENCES OR THE FILING OF SUCH REGISTRATION, WHICHEVER OCCURS LATER.
(III) NOTWITHSTANDING ANYTHING IN SUBPARAGRAPH (I) OF THIS PARAGRAPH
OR PARAGRAPH (N) OF SUBDIVISION TWO OF SECTION TWO OF THE EMERGENCY
HOUSING RENT CONTROL LAW TO THE CONTRARY, THE FAILURE OF THE OWNER TO
COMPLY WITH THE REQUIREMENTS OF SUBPARAGRAPH (II) OF THIS PARAGRAPH
SHALL RESULT IN THE HOUSING ACCOMMODATION REMAINING SUBJECT TO THE
PROVISIONS OF THIS ACT OR THE EMERGENCY HOUSING RENT CONTROL LAW AT THE
LAST REGULATED RENT UNTIL THE OWNER COMPLIES WITH THE REQUIREMENTS OF
SUBPARAGRAPH (II) OF THIS PARAGRAPH.
S 8. This act shall take effect on the ninetieth day after it shall
have become a law; provided that:
(a) sections six and seven of this act shall take effect on the thir-
tieth day after this act shall have become a law;
(b) the amendments to section 26-405 of the city rent and rehabili-
tation 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;
(c) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections two, three and 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 under section 26-520 of such law;
(d) the amendments to the emergency tenant protection act of nineteen
seventy-four made by sections four and seven of this act shall expire on
S. 799 6
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;
(e) the amendments to section 4 of the emergency housing rent control
law made by section five 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; and
(f) effective immediately, the division of housing and community
renewal is authorized to and shall promulgate all rules, regulations and
standards necessary to implement the provisions of this act.