S T A T E O F N E W Y O R K
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7881
2013-2014 Regular Sessions
I N A S S E M B L Y
June 7, 2013
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Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Housing
AN ACT to amend the administrative code of the city of New York and the
emergency housing rent control law, in relation to the establishment
of rent adjustments; and repealing certain provisions of the adminis-
trative code of the city of New York relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision a of section 26-405 of the administrative code
of the city of New York is amended by adding a new paragraph 10 to read
as follows:
(10) (A) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS SUBDIVISION,
EFFECTIVE JANUARY FIRST, TWO THOUSAND FOURTEEN, MAXIMUM RENTS FOR HOUS-
ING ACCOMMODATIONS SUBJECT TO THIS CHAPTER SHALL NO LONGER BE ESTAB-
LISHED PURSUANT TO THE OPENING PARAGRAPH OF PARAGRAPH FOUR OF THIS
SUBDIVISION.
(B) EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH, THE RENT GUIDE-
LINES BOARD ESTABLISHED PURSUANT TO SECTION 26-510 OF THIS TITLE SHALL
ESTABLISH ANNUAL RATES OF RENT ADJUSTMENT FOR THE CLASS OF HOUSING
ACCOMMODATIONS SUBJECT TO THIS CHAPTER, IN THE MANNER PROVIDED BY SUCH
SECTION. THE FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT TO THIS
CHAPTER MAY NOT BE CONSIDERED AS A FACTOR IN DETERMINING THE RATE OF
RENT ADJUSTMENT. NOT LATER THAN OCTOBER FIRST, TWO THOUSAND THIRTEEN,
AND NOT LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER, THE RENT GUIDE-
LINES BOARD SHALL FILE WITH THE CITY CLERK AND THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL ITS FINDINGS ESTABLISHED IN CONSIDERATION OF THE
ECONOMIC FACTORS LISTED IN SUBDIVISION B OF SECTION 26-510 OF THIS
TITLE, 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 CHAPTER AUTHORIZED FOR THE ADJUSTMENT OF
THE MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE TWELVE MONTH PERI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09961-04-3
A. 7881 2
OD COMMENCING JANUARY FIRST, TWO THOUSAND THIRTEEN AND FOR EACH SUCCEED-
ING TWELVE MONTH PERIOD.
(C) EFFECTIVE JANUARY FIRST, TWO THOUSAND FOURTEEN, THE MAXIMUM
COLLECTABLE RENT IN EFFECT AS OF DECEMBER THIRTY-FIRST, TWO THOUSAND
THIRTEEN PLUS AN AVERAGE OF THE PREVIOUS FIVE YEARS OF ONE-YEAR RENT
INCREASES ON STABILIZED APARTMENTS AS ESTABLISHED BY THE RENT GUIDELINES
BOARD, PROVIDED THAT A LANDLORD SHALL NOT COLLECT ANY RENT INCREASE OR
ADJUSTMENT OTHERWISE COLLECTIBLE UNDER SUBPARAGRAPH (B) OF THIS PARA-
GRAPH UNLESS AND UNTIL THE FIRST RENT PAYMENT DATE AFTER THE LANDLORD
CERTIFIES TO THE CITY RENT AGENCY THAT ALL RENT IMPAIRING VIOLATIONS, AS
DEFINED BY SECTION THREE HUNDRED TWO-A OF THE MULTIPLE DWELLING LAW, AND
AT LEAST EIGHTY PER CENTUM OF ALL OTHER VIOLATIONS OF THE HOUSING MAIN-
TENANCE CODE OR OTHER STATE OR LOCAL LAWS THAT IMPOSE REQUIREMENTS ON
PROPERTY AND WHICH WERE RECORDED OR ISSUED AGAINST THE PROPERTY ON JULY
FIRST, TWO THOUSAND TWELVE, OR JULY FIRST OF THE YEAR PRECEDING THE
ADJUSTMENT, WHICHEVER IS LATER, HAVE BEEN CLEARED, CORRECTED OR ABATED
AND THE LANDLORD HAS RECEIVED AN ORDER OF ELIGIBILITY FROM THE CITY RENT
AGENCY THAT THE VIOLATION CLEARING REQUIREMENTS SET FORTH ABOVE HAVE
BEEN MET AND FURTHER AUTHORIZING THE LANDLORD TO COLLECT ANY RENT
INCREASE OR ADJUSTMENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (B) OF THIS
PARAGRAPH, AND THE LANDLORD HAS SERVED SUCH ORDER UPON THE TENANT RESID-
ING IN THE HOUSING ACCOMMODATION AND THAT THE LANDLORD HAS MAINTAINED
ALL ESSENTIAL AND REQUIRED SERVICES PURSUANT TO SECTION 2102.3 OF THE
NEW YORK CITY RENT AND EVICTION REGULATIONS. THE RENT GUIDELINES BOARD
SHALL ANNUALLY ISSUE INFORMATIONAL MATERIAL SETTING FORTH THE MAXIMUM
RATES. ANY HOUSING ACCOMMODATION FOR WHICH A RENT INCREASE PURSUANT TO
PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION HAS TAKEN EFFECT ON OR
AFTER JULY FIRST, TWO THOUSAND THIRTEEN SHALL NOT BE SUBJECT TO AN
INITIAL RENT ADJUSTMENT PURSUANT TO THIS SUBPARAGRAPH UNTIL JANUARY
FIRST, TWO THOUSAND FIFTEEN.
(D) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
WITHIN THE RENT GUIDELINES BOARD'S JURISDICTION. ONCE ESTABLISHED, NO
SUCH RATE SHALL BE ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT,
REOPENER OR OTHER MODIFICATION.
(E) NOTHING CONTAINED IN THIS PARAGRAPH SHALL ALTER, RESTRICT OR
IMPAIR AN OWNER'S RIGHT TO ESTABLISH THE INITIAL REGULATED RENT FOR
ACCOMMODATIONS SUBJECT TO THIS CHAPTER WHICH BECOME VACANT.
S 2. Paragraph 5 of subdivision a of section 26-405 of the administra-
tive 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 increase] AN AVERAGE OF THE PREVIOUS FIVE
YEARS OF ONE-YEAR RENT INCREASES ON STABILIZED APARTMENTS AS ESTABLISHED
BY THE RENT GUIDELINES BOARD 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 over the previous
rent and additional annual rents shall not exceed seven and one-half
percentum of the rent paid during the previous year] AN AVERAGE OF THE
PREVIOUS FIVE YEARS OF ONE-YEAR RENT INCREASES ON STABILIZED APARTMENTS
AS ESTABLISHED BY THE RENT GUIDELINES BOARD. Notwithstanding any of the
foregoing limitations in this paragraph five, maximum rent shall be
A. 7881 3
increased if ordered by the agency pursuant to subparagraphs (d), (e),
(f), (g), (h), (i)[, (k), (l),] OR (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 para-
graph one of subdivision g of this section shall be excluded from the
maximum rent when computing the seven and one-half percentum increase
authorized by this paragraph five.] Where a housing accommodation is
vacant on January first, nineteen hundred seventy-two, or becomes vacant
thereafter by voluntary surrender of possession by the tenants, the
maximum rent established BY THE RENT GUIDELINES BOARD for such accommo-
dations may be collected.
S 3. Subparagraphs (k), (l) and (n) of paragraph 1 of subdivision g of
section 26-405 of the administrative code of the city of New York are
REPEALED.
S 4. Section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, is amended by adding a new subdivi-
sion 9 to read as follows:
9. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS LAW, EFFECTIVE
JANUARY FIRST, TWO THOUSAND FOURTEEN, EXCEPT AS OTHERWISE PROVIDED IN
THIS SUBDIVISION, THE RENT FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS
CHAPTER LOCATED IN THE COUNTIES OF WESTCHESTER, ROCKLAND AND NASSAU
SHALL BE ADJUSTED AS FOLLOWS:
(A) THE COUNTY RENT BOARDS ESTABLISHED PURSUANT TO SECTION 4 OF THE
EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, SHALL ESTAB-
LISH ANNUAL RENT ADJUSTMENTS FOR THE CLASS OF HOUSING ACCOMMODATIONS
SUBJECT TO THIS CHAPTER LOCATED IN THE COUNTIES OF WESTCHESTER, ROCKLAND
AND NASSAU, IN THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT THE
HOUSING ACCOMMODATION IS SUBJECT TO THIS LAW MAY NOT BE CONSIDERED AS A
FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN OCTO-
BER FIRST, TWO THOUSAND THIRTEEN, AND NOT LATER THAN OCTOBER FIRST ANNU-
ALLY THEREAFTER, THE COUNTY RENT BOARDS SHALL FILE WITH THE COMMISSION
THEIR FINDINGS ESTABLISHED IN CONSIDERATION OF THE ECONOMIC FACTORS
LISTED IN SUBDIVISION B OF SECTION 4 OF THE EMERGENCY TENANT PROTECTION
ACT OF NINETEEN SEVENTY-FOUR, 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 WITHIN SUCH
COUNTIES AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUS-
ING ACCOMMODATION FOR THE TWELVE MONTH PERIOD COMMENCING JANUARY FIRST,
TWO THOUSAND FOURTEEN, AND FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
(B) EFFECTIVE JANUARY FIRST, TWO THOUSAND FOURTEEN, THE MAXIMUM RENT
COLLECTIBLE FROM THE TENANT SHALL BE AN AVERAGE OF THE PREVIOUS FIVE
YEARS OF ONE-YEAR RENT INCREASES ON STABILIZED APARTMENTS, AS ESTAB-
LISHED BY THE RENT GUIDELINES BOARD. HOWEVER, NO SUCH INCREASE PURSUANT
TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE AUTHORIZED UNTIL THE EXPI-
RATION OF TWELVE MONTHS FROM THE EFFECTIVE DATE OF ANY RENT ADJUSTMENT
AUTHORIZED PURSUANT TO REGULATIONS ADOPTED FOR RENT ADJUSTMENTS TO
COMPENSATE FOR UNAVOIDABLE INCREASED COSTS OF OPERATIONS AS PROVIDED FOR
UNDER THIS LAW.
(C) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS LAW
WITHIN A BOARD'S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
MODIFICATION.
(D) NOTHING CONTAINED IN THIS PARAGRAPH SHALL ALTER, RESTRICT OR
IMPAIR AN OWNER'S RIGHT TO ESTABLISH THE INITIAL REGULATED RENT FOR
ACCOMMODATIONS SUBJECT TO THIS LAW WHICH BECOME VACANT.
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S 5. This act shall take effect immediately; provided that the amend-
ments to section 26-405 of the city rent and rehabilitation law made by
sections one and two 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; and provided that the amendments to section 4 of the emergency
housing rent control law made by section four 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.