senate Bill S833

2013-2014 Legislative Session

Relates to assessed valuation of property for purposes of adjustment of maximum 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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Actions

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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

S833 - Bill Details

Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Amd ยง26-405, NYC Ad Cd
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1289
2009-2010: S6255

S833 - Bill Texts

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Relates to assessed valuation of property for purposes of adjustment of maximum rents.

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BILL NUMBER:S833

TITLE OF BILL:
An act
to amend the administrative code of the city of New York, in relation to
assessed valuation of property for purposes of adjustment of maximum
rents

PURPOSE:
Clarifies the provision of the rent control law under which owners are
entitled to "hardship" rent increases.

SUMMARY OF PROVISIONS:
Section One amends clause 1 of subparagraph (a) of paragraph 1 of
subdivision g of section 26-405 of the administrative code of the city
of New York to state valuation shall be current equalized assessed
valuation established by the city based upon the appropriate tax
class ratio which is established pursuant to article twelve of the
real property tax law.

Section Two provides that the provisions outlined in section One of
the legislation shall be deemed to have been in full force and effect
on or after September 30, 1997, and shall apply to any proceeding
pending on the effective date of this act, or determined thereafter.

Section Three is the effective date.

EXISTING LAW:
New Bill.

JUSTIFICATION:
The proposed corrective amendment clarifies the provision of the rent
control law under which owners are entitled to "hardship" rent
increases.. The amendment clarifies that the measure of an owner I s
return on investment (or "capital value") under the hardship formula
is consistent with the measure of the owner's return on investment
under the biennial MBR formula" The amendment is required to insure
that there is an accurate rather than inflated measure of capital
value.

The New York city council in 1997 enacted Local Law 73, which was
effective September 30, 1997, to provide that "Capital value shall be
equalized assessed valuation based upon the appropriate tax class
ratio which is established pursuant to article twelve of the real
property tax law." section 26-405 (a) (3) of the City Rent and
Rehabilitation Act. Local Law 73 was upheld by the New York State
Court of Appeals in city of New York v, DHCR, 97 NY2d 216 (2001).

In upholding Local Law 73, the Court of Appeals found that Article-12
represents a "more accurate" measure of capital value than Article
12-a because Article-12 takes into consideration the specific type of
property while Article 12-a is based upon consideration of all
property in the City of New York without regard to the type of
property. Utilization of Article 12-a to measure capital value
results in a gross overvaluation of property, an inflated return on
investment and the finding of "hardship" where an owner is already


obtaining a fair rate of return. The amendment is necessary to insure
that hardship applications do not lead to the unnecessary
displacement of long-term rent controlled tenants, many of whom are
elderly and/or disabled, on the basis of an overvaluation of an owner's
property. This corrective amendment is deemed in full force and
effect on or after September 30, 1997 so as to make the hardship
provisions consistent with the Local Law 73.

LEGISLATIVE HISTORY:
2009: S.6255 (Duane), Died in Rules
2010: S.6255 (Duane), Died in Housing

FISCAL IMPLICATIONS:
Minimal.

LOCAL FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
This act shall take effect immediately: provided that the amendment to
sections 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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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   833

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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 the administrative code of the  city  of  New  York,  in
  relation  to assessed valuation of property for purposes of adjustment
  of maximum rents

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

  Section  1.  The  opening paragraph of clause 1 of subparagraph (a) of
paragraph 1 of subdivision g of section  26-405  of  the  administrative
code of the city of New York is amended to read as follows:
  Such  valuation  shall  be  the  current  EQUALIZED assessed valuation
established by the city BASED UPON THE APPROPRIATE TAX CLASS RATIO WHICH
IS ESTABLISHED PURSUANT TO ARTICLE TWELVE OF THE REAL PROPERTY TAX  LAW,
which  is  in effect at the time of the filing of the application for an
adjustment under this subparagraph [(a)]; provided that:
  S 2. The provisions of section one of this act shall be deemed to have
been in full force and effect on and after September 30, 1997, and shall
apply to any proceeding pending on the effective date  of  this  act  or
determined thereafter.
  S  3. 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.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04088-01-3

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