S T A T E O F N E W Y O R K
________________________________________________________________________
1970--A
2015-2016 Regular Sessions
I N A S S E M B L Y
January 13, 2015
___________
Introduced by M. of A. MAYER, WRIGHT, ABINANTI, COLTON, GOTTFRIED, HOOP-
ER, JAFFEE, KAVANAGH, O'DONNELL, PRETLOW, RIVERA, ROZIC, SOLAGES,
ARROYO, MOSLEY, PICHARDO -- Multi-Sponsored by -- M. of A. BUCHWALD,
HEVESI, MARKEY, SIMON -- read once and referred to the Committee on
Housing -- recommitted to the Committee on Housing in accordance with
Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend chapter 576 of the laws of 1974 constituting the emer-
gency tenant protection act of nineteen seventy-four, the administra-
tive code of the city of New York and the emergency housing rent
control law, in relation to prohibiting the collection of rent arrear-
ages 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00298-09-6
A. 1970--A 2
S 3. The second undesignated paragraph of paragraph (a) of subdivi-
sion 4 of section 4 of chapter 274 of the laws of 1946, constituting 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:
No application for adjustment of maximum rent based upon a sales price
valuation shall be filed by the landlord under this subparagraph prior
to six months from the date of such sale of the property. In addition,
no adjustment ordered by the commission based upon such sales price
valuation shall be effective prior to one year from the date of such
sale. Where, however, the assessed valuation of the land exceeds four
times the assessed valuation of the buildings thereon, the commission
may determine a valuation of the property equal to five times the equal-
ized assessed valuation of the buildings, for the purposes of this
subparagraph. The commission may make a determination that the valu-
ation of the property is an amount different from such equalized
assessed valuation where there is a request for a reduction in such
assessed valuation currently pending; or where there has been a
reduction in the assessed valuation for the year next preceding the
effective date of the current assessed valuation in effect at the time
of the filing of the application. Net annual return shall be the amount
by which the earned income exceeds the operating expenses of the proper-
ty, excluding mortgage interest and amortization, and excluding allow-
ances for obsolescence and reserves, but including an allowance for
depreciation of two per centum of the value of the buildings exclusive
of the land, or the amount shown for depreciation of the buildings in
the latest required federal income tax return, whichever is lower;
provided, however, that (1) no allowance for depreciation of the build-
ings shall be included where the buildings have been fully depreciated
for federal income tax purposes or on the books of the owner; or (2) the
landlord who owns no more than four rental units within the state has
not been fully compensated by increases in rental income sufficient to
offset unavoidable increases in property taxes, fuel, utilities, insur-
ance and repairs and maintenance, excluding mortgage interest and amor-
tization, and excluding allowances for depreciation, obsolescence and
reserves, which have occurred since the federal date determining the
maximum rent or the date the property was acquired by the present owner,
whichever is later; or (3) the landlord operates a hotel or rooming
house or owns a cooperative apartment and has not been fully compensated
by increases in rental income from the controlled housing accommodations
sufficient to offset unavoidable increases in property taxes and other
costs as are allocable to such controlled housing accommodations,
including costs of operation of such hotel or rooming house, but exclud-
ing mortgage interest and amortization, and excluding allowances for
depreciation, obsolescence and reserves, which have occurred since the
federal date determining the maximum rent or the date the landlord
commenced the operation of the property, whichever is later; or (4) the
landlord and tenant voluntarily enter into a valid written lease in good
faith with respect to any housing accommodation, which lease provides
for an increase in the maximum rent not in excess of fifteen per centum
and for a term of not less than two years, except that where such lease
provides for an increase in excess of fifteen per centum, the increase
shall be automatically reduced to fifteen per centum; or (5) the land-
lord 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
A. 1970--A 3
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 improvements or new furniture or furnishings provided in or
to a tenant's housing accommodation. The permanent increase in the maxi-
mum rent for the affected housing accommodation shall be one-fortieth,
in the case of a building with thirty-five or fewer housing accommo-
dations, or one-sixtieth, in the case of a building with more than thir-
ty-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 equip-
ment, including the cost of installation, but excluding finance charges
provided further that an owner who is entitled to a rent increase pursu-
ant 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 furni-
ture or furnishings. The owner shall give written notice to the commis-
sion of any such adjustment pursuant to this clause; or (6) there has
been, since March first, nineteen hundred fifty, an increase in the
rental value of the housing accommodations as a result of a substantial
rehabilitation of the building or housing accommodation therein which
materially adds to the value of the property or appreciably prolongs its
life, excluding ordinary repairs, maintenance and replacements; or (7)
there has been since March first, nineteen hundred fifty, a major capi-
tal improvement required for the operation, preservation or maintenance
of the structure; or (8) there has been since March first, nineteen
hundred fifty, in structures containing more than four housing accommo-
dations, other improvements made with the express consent of the tenants
in occupancy of at least seventy-five per centum of the housing accom-
modations, provided, however, that no adjustment granted hereunder shall
exceed fifteen per centum unless the tenants have agreed to a higher
percentage of increase, as herein provided; or (9) there has been,
since March first, nineteen hundred fifty, a subletting without written
consent from the landlord or an increase in the number of adult occu-
pants who are not members of the immediate family of the tenant, and the
landlord has not been compensated therefor by adjustment of the maximum
rent by lease or order of the commission or pursuant to the federal act;
or (10) the presence of unique or peculiar circumstances materially
affecting the maximum rent has resulted in a maximum rent which is
substantially lower than the rents generally prevailing in the same area
for substantially similar housing accommodations; OR (11) NOTWITHSTAND-
ING 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 THERE-
FOR. NO INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO THE
DATE OF APPROVAL OF THE APPLICATION.
S 4. Paragraph 1 of subdivision g of section 26-405 of the administra-
tive code of the city of New York is amended by adding a new subpara-
graph (p) to read as follows:
(P) 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 5. This act shall take effect immediately; provided that:
A. 1970--A 4
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;
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;
c. the amendments to section 4 of the emergency housing rent control
law made by section three 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
d. the amendments to section 26-405 of the city rent and rehabili-
tation law made by section four 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.