LBD10644-10-5
A. 7526 2
for certain rental housing accommodations; 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 approval of major capital improvement rent increases and
in relation to extending the length of time over which major capital
improvement expenses may be recovered; to amend the administrative
code of the city of New York, in relation to waivers of rent adjust-
ments; to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen seventy-four and the emer-
gency housing rent control law, in relation to adjustment of maximum
allowable rent; to amend the administrative code of the city of New
York and the emergency tenant protection act of nineteen seventy-four,
in relation to hardship applications; to amend the emergency tenant
protection act of nineteen seventy-four, in relation to the declara-
tion of housing emergencies for rental housing accommodations located
in buildings owned by certain limited-profit housing companies; to
amend the administrative code of the city of New York, in relation to
the filing of an overcharge complaint; to amend the penal law, in
relation to harassment of a rent regulated tenant; to amend the civil
practice law and rules, in relation to residential rent overcharges;
to amend the administrative code of the city of New York and the emer-
gency housing rent control law, in relation to the establishment of
rent adjustments; to amend the real property law, in relation to the
duty of a landlord to provide written receipts and notification of
non-payment of rent; to amend the multiple dwelling law, in relation
to coverage of interim multiple dwellings and owner obligations; to
amend the civil practice law and rules, in relation to prerequisites
and certificate of merit in an eviction proceeding and to repeal
subdivision (h) of section 27 of chapter 4 of the laws of 2013 amend-
ing the real property tax law relating to exemption from taxation to
alterations and improvements to multiple dwellings to eliminate fire
and health hazards, relating thereto; and to repeal paragraph (n) of
subdivision 2 of section 2 of chapter 274 of the laws of 1946, consti-
tuting the emergency housing rent control law, paragraph 13 of subdi-
vision a of section 5 of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act, subparagraph (k) of
paragraph 2 of subdivision e of section 26-403 and subparagraphs (l)
and (n) of paragraph 1 of subdivision g of section 26-405 of the
administrative code of the city of New York and section 26-504.2 of
the administrative code of the city of New York related thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "rent act of 2015".
S 1-a. Section 17 of chapter 576 of the laws of 1974 amending the
emergency housing rent control law relating to the control of and
stabilization of rent in certain cases, as amended by section 1-a of
part B of chapter 97 of the laws of 2011, is amended to read as follows:
S 17. Effective date. This act shall take effect immediately and
shall remain in full force and effect until and including the fifteenth
day of June [2015] 2019; except that sections two and three shall take
effect with respect to any city having a population of one million or
more and section one shall take effect with respect to any other city,
A. 7526 3
or any town or village whenever the local legislative body of a city,
town or village determines the existence of a public emergency pursuant
to section three of the emergency tenant protection act of nineteen
seventy-four, as enacted by section four of this act, and provided that
the housing accommodations subject on the effective date of this act to
stabilization pursuant to the New York city rent stabilization law of
nineteen hundred sixty-nine shall remain subject to such law upon the
expiration of this act.
S 2. Subdivision 2 of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, as amended by
section 2 of part B of chapter 97 of the laws of 2011, is amended to
read as follows:
2. The provisions of this act, and all regulations, orders and
requirements thereunder shall remain in full force and effect until and
including June 15, [2015] 2019.
S 3. Section 2 of chapter 329 of the laws of 1963 amending the emer-
gency housing rent control law relating to recontrol of rents in Albany,
as amended by section 3 of part B of chapter 97 of the laws of 2011, is
amended to read as follows:
S 2. This act shall take effect immediately and the provisions of
subdivision 6 of section 12 of the emergency housing rent control law,
as added by this act, shall remain in full force and effect until and
including June 15, [2015] 2019.
S 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
al business law and the administrative code of the city of New York
relating to conversion of residential property to cooperative or condo-
minium ownership in the city of New York, as amended by section 4 of
part B of chapter 97 of the laws of 2011, is amended to read as follows:
S 10. This act shall take effect immediately; provided, that the
provisions of sections one, two and nine of this act shall remain in
full force and effect only until and including June 15, [2015] 2019;
provided further that the provisions of section three of this act shall
remain in full force and effect only so 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 emer-
gency housing rent control act; provided further that the provisions of
sections four, five, six and seven of this act shall expire in accord-
ance with the provisions of section 26-520 of the administrative code of
the city of New York as such section of the administrative code is, from
time to time, amended; provided further that the provisions of section
26-511 of the administrative code of the city of New York, as amended by
this act, which the New York City Department of Housing Preservation and
Development must find are contained in the code of the real estate
industry stabilization association of such city in order to approve it,
shall be deemed contained therein as of the effective date of this act;
and provided further that any plan accepted for filing by the department
of law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eeee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 5. Section 4 of chapter 402 of the laws of 1983 amending the general
business law relating to conversion of rental residential property to
cooperative or condominium ownership in certain municipalities in the
counties of Nassau, Westchester and Rockland, as amended by section 5 of
part B of chapter 97 of the laws of 2011, is amended to read as follows:
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S 4. This act shall take effect immediately; provided, that the
provisions of sections one and three of this act shall remain in full
force and effect only until and including June 15, [2015] 2019; and
provided further that any plan accepted for filing by the department of
law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 6. Subdivision 6 of section 46 of chapter 116 of the laws of 1997
constituting the rent regulation reform act of 1997, as amended by
section 6 of part B of chapter 97 of the laws of 2011, is amended to
read as follows:
6. sections twenty-eight, twenty-eight-a, twenty-eight-b and twenty-
eight-c of this act shall expire and be deemed repealed after June 15,
[2015] 2019;
S 7. Subdivision (a-2) of section 10 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 13 of part B of chapter 97
of the laws of 2011, is amended to read as follows:
(a-2) Provides that where the amount of rent charged to and paid by
the tenant is less than the legal regulated rent for the housing accom-
modation, the amount of rent for such housing accommodation which may be
charged [upon renewal or] upon vacancy thereof may, at the option of the
owner, be based upon such previously established legal regulated rent,
as adjusted by [the most recent] ALL applicable guidelines increases and
other increases authorized by law; PROVIDED, HOWEVER, THAT SUCH VACANCY
SHALL NOT BE CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT OF THE
OWNER, TO MAINTAIN THE HOUSING ACCOMMODATION IN COMPLIANCE WITH THE
WARRANTY OF HABITABILITY SET FORTH IN SUBDIVISION ONE OF SECTION TWO
HUNDRED THIRTY-FIVE-B OF THE REAL PROPERTY LAW. Where, subsequent to
vacancy, such legal regulated rent, as adjusted by the most recent
applicable guidelines increases and any other increases authorized by
law is two thousand dollars or more per month or, for any housing accom-
modation which is or becomes vacant on or after the effective date of
the rent act of 2011, is two thousand five hundred dollars or more per
month, such housing accommodation shall be excluded from the provisions
of this act pursuant to paragraph thirteen of subdivision a of section
five of this act.
S 8. Paragraph 14 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 14 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
(14) provides that where the amount of rent charged to and paid by the
tenant is less than the legal regulated rent for the housing accommo-
dation, the amount of rent for such housing accommodation which may be
charged [upon renewal or] upon vacancy thereof may, at the option of the
owner, be based upon such previously established legal regulated rent,
as adjusted by the most recent applicable guidelines increases and any
other increases authorized by law; PROVIDED, HOWEVER, THAT SUCH VACANCY
SHALL NOT BE CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT OF THE
OWNER, TO MAINTAIN THE HOUSING ACCOMMODATION IN COMPLIANCE WITH THE
WARRANTY OF HABITABILITY SET FORTH IN SUBDIVISION ONE OF SECTION TWO
HUNDRED THIRTY-FIVE-B OF THE REAL PROPERTY LAW. Where, subsequent to
vacancy, such legal regulated rent, as adjusted by [the most recent] ALL
applicable guidelines increases and any other increases authorized by
law is two thousand dollars or more per month or, for any housing accom-
modation which is or becomes vacant on or after the effective date of
A. 7526 5
the rent act of 2011, is two thousand five hundred dollars or more per
month, such housing accommodation shall be excluded from the provisions
of this law pursuant to section 26-504.2 of this chapter.
S 9. Paragraphs 1 and 2 of subdivision c of section 26-516 of the
administrative code of the city of New York, as amended by section 1 of
chapter 480 of the laws of 2009, are amended to read as follows:
(1) to have violated an order of the division the commissioner may
impose by administrative order after hearing, a civil penalty [in the
amount of one thousand dollars for the first such offense and two] AT
MINIMUM IN THE AMOUNT OF ONE THOUSAND BUT NOT TO EXCEED TWO THOUSAND
DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT A MINIMUM IN THE AMOUNT OF
TWO THOUSAND BUT NOT TO EXCEED FOUR thousand dollars for each subsequent
offense; or
(2) to have harassed a tenant to obtain vacancy of his or her housing
accommodation, the commissioner may impose by administrative order after
hearing, a civil penalty for any such violation. Such penalty shall be
[in the amount of two thousand dollars for a first such offense and up
to ten] AT MINIMUM IN THE AMOUNT OF TWO THOUSAND BUT NOT TO EXCEED FIVE
THOUSAND DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT MINIMUM IN THE
AMOUNT OF TEN THOUSAND BUT NOT TO EXCEED FIFTEEN thousand dollars for
each subsequent offense or for a violation consisting of conduct
directed at the tenants of more than one housing accommodation.
S 10. Paragraph 2 of subdivision c of section 26-516 of the adminis-
trative code of the city of New York, as amended by section 2 of chapter
480 of the laws of 2009, is amended to read as follows:
(2) to have harassed a tenant to obtain vacancy of his or her housing
accommodation, the commissioner may impose by administrative order after
hearing, a civil penalty for any such violation. Such penalty shall be
[in the amount of two thousand dollars for a first such offense and up
to ten] AT MINIMUM IN THE AMOUNT OF TWO THOUSAND BUT NOT TO EXCEED FIVE
THOUSAND DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT A MINIMUM IN THE
AMOUNT OF TEN THOUSAND BUT NOT TO EXCEED FIFTEEN thousand dollars for
each subsequent offense or for a violation consisting of conduct
directed at the tenants of more than one housing accommodation.
S 11. Subparagraph (a) of paragraph 2 of subdivision b of section
26-413 of the administrative code of the city of New York, as amended by
section 3 of chapter 480 of the laws of 2009, is amended to read as
follows:
(a) Impose by administrative order after hearing, a civil penalty for
any violation of said section and bring an action to recover same in any
court of competent jurisdiction. Such penalty in the case of a violation
of subdivision d of such section shall be [in the amount of two thousand
dollars for the first offense and ten] AT MINIMUM IN THE AMOUNT OF TWO
THOUSAND BUT NOT TO EXCEED FIVE THOUSAND DOLLARS FOR THE FIRST SUCH
OFFENSE, AND AT MINIMUM IN THE AMOUNT OF TEN THOUSAND BUT NOT TO EXCEED
FIFTEEN thousand dollars for each subsequent offense or for a violation
consisting of conduct directed at the tenants of more than one housing
accommodation; and in the case of any other violation of such section
[in the amount of one thousand dollars for the first such offense and
two] AT MINIMUM IN THE AMOUNT OF ONE THOUSAND BUT NOT TO EXCEED TWO
THOUSAND DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT MINIMUM IN THE
AMOUNT OF TWO THOUSAND BUT NOT TO EXCEED FOUR thousand dollars for each
subsequent offense. Such order by the city rent agency shall be deemed a
final determination for the purposes of judicial review as provided in
section 26-411 of this chapter. Such action shall be brought on behalf
of the city and any amount recovered shall be paid into the city treas-
A. 7526 6
ury. Such right of action may be released, compromised or adjusted by
the city rent agency at any time subsequent to the issuance of such
administrative order.
S 12. Subparagraph (a) of paragraph 2 of subdivision b of section
26-413 of the administrative code of the city of New York, as amended by
section 4 of chapter 480 of the laws of 2009, is amended to read as
follows:
(a) Impose by administrative order after hearing, a civil penalty for
any violation of said section and bring an action to recover same in any
court of competent jurisdiction. Such penalty in the case of a violation
of subdivision d of such section shall be [in the amount of two thousand
dollars for a first such offense and ten] AT MINIMUM IN THE AMOUNT OF
TWO THOUSAND BUT NOT TO EXCEED FIVE THOUSAND DOLLARS FOR THE FIRST SUCH
OFFENSE, AND AT MINIMUM IN THE AMOUNT OF TEN THOUSAND BUT NOT TO EXCEED
FIFTEEN thousand dollars for each subsequent offense or for a violation
consisting of conduct directed at the tenants of more than one housing
accommodation; and in the case of any other violation of such section
[in the amount of one thousand dollars for the first such offense and
two] AT MINIMUM IN THE AMOUNT OF ONE THOUSAND BUT NOT TO EXCEED TWO
THOUSAND DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT MINIMUM IN THE
AMOUNT OF TWO THOUSAND BUT NOT TO EXCEED FOUR thousand dollars for each
subsequent offense. Such order by the city rent agency shall be deemed a
final determination for the purposes of judicial review as provided in
section 26-411 of this chapter. Such action shall be brought on behalf
of the city and any amount recovered shall be paid into the city treas-
ury. Such right of action may be released, compromised or adjusted by
the city rent agency at any time subsequent to the issuance of such
administrative order.
S 13. Clauses (i) and (ii) of paragraph 3 of subdivision a of section
12 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 5 of chapter 480 of the laws of 2009, are amended to read as
follows:
(i) to have violated an order of the division the commissioner may
impose by administrative order after hearing, a civil penalty [in the
amount of one thousand dollars for the first such offense and two] AT
MINIMUM IN THE AMOUNT OF ONE THOUSAND BUT NOT TO EXCEED TWO THOUSAND
DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT MINIMUM IN THE AMOUNT OF TWO
THOUSAND BUT NOT TO EXCEED FOUR thousand dollars for each subsequent
offense; or
(ii) to have harassed a tenant to obtain vacancy of his housing accom-
modation, the commissioner may impose by administrative order after
hearing, a civil penalty for any such violation. Such penalty shall be
[in the amount of two thousand dollars for the first such offense and
ten] AT MINIMUM IN THE AMOUNT OF TWO THOUSAND BUT NOT TO EXCEED FIVE
THOUSAND DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT MINIMUM IN THE
AMOUNT OF TEN THOUSAND BUT NOT TO EXCEED FIFTEEN thousand dollars for
each subsequent offense or for a violation consisting of conduct
directed at the tenants of more than one housing accommodation.
S 14. Clause (ii) of paragraph 3 of subdivision a of section 12 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 6
of chapter 480 of the laws of 2009, is amended to read as follows:
(ii) to have harassed a tenant to obtain vacancy of his housing accom-
modation, the commissioner may impose by administrative order after
hearing, a civil penalty for any such violation. Such penalty shall be
A. 7526 7
[in the amount of two thousand dollars for the first such offense and
ten] AT MINIMUM IN THE AMOUNT OF TWO THOUSAND BUT NOT TO EXCEED FIVE
THOUSAND DOLLARS FOR THE FIRST SUCH OFFENSE, AND AT MINIMUM IN THE
AMOUNT OF TEN THOUSAND BUT NOT TO EXCEED FIFTEEN thousand dollars for
each subsequent offense or for a violation consisting of conduct
directed at the tenants of more than one housing accommodation.
S 15. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of
the laws of 1946, constituting the emergency housing rent control law,
is REPEALED.
S 16. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, is REPEALED.
S 17. Subparagraph (k) of paragraph 2 of subdivision e of section
26-403 of the administrative code of the city of New York is REPEALED.
S 18. Section 26-504.2 of the administrative code of the city of New
York is REPEALED.
S 19. Any housing accommodations that prior to the effective date of
this act were excluded from coverage from the emergency tenant
protection act of nineteen seventy-four, the emergency housing rent
control law or the administrative code of the city of New York pursuant
to the provisions of law repealed by sections two, three, four and five
of this act, and where such housing accommodations were located outside
the city of New York and were rented to a tenant between January 1, 2013
and the effective date of this act for less than $3,500.00 per month
regardless of any subsequent payment of a higher monthly rent, or were
located within the city of New York and were rented to a tenant between
January 1, 2013 and the effective date of this act for less than
$5,000.00 per month, regardless of any subsequent payment of a higher
monthly rent, shall be subject to the provisions of such act, law or
administrative code, respectively. Notwithstanding the provisions of any
lease or rental agreement, the legal regulated rent or maximum collect-
ible rent of any housing accommodation excluded from regulation prior to
the effective date of this act by reason of the provisions repealed by
sections two, three, four and five of this act and made subject to regu-
lation shall be the actual rent paid by a tenant on December 31, 2014
or, if no rent was paid for such accommodation on December 31, 2014, the
most recent actual rent paid by a tenant for such accommodation prior to
December 31, 2014, subject to further adjustment in accordance with
applicable provisions of law.
S 20. Paragraph 14 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 14 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
(14) provides that where the amount of rent charged to and paid by the
tenant is less than the legal regulated rent for the housing accommo-
dation, the amount of rent for such housing accommodation which may be
charged upon renewal or upon vacancy thereof may, at the option of the
owner, be based upon such previously established legal regulated rent,
as adjusted by the most recent applicable guidelines increases and any
other increases authorized by law. [Where, subsequent to vacancy, such
legal regulated rent, as adjusted by the most recent applicable guide-
lines increases and any other increases authorized by law is two thou-
sand dollars or more per month or, for any housing accommodation which
is or becomes vacant on or after the effective date of the rent act of
2011, is two thousand five hundred dollars or more per month, such hous-
ing accommodation shall be excluded from the provisions of this law
pursuant to section 26-504.2 of this chapter.]
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S 21. Subdivision (a-2) of section 10 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 13 of part B of chapter 97
of the laws of 2011, is amended to read as follows:
(a-2) Provides that where the amount of rent charged to and paid by
the tenant is less than the legal regulated rent for the housing accom-
modation, the amount of rent for such housing accommodation which may be
charged upon renewal or upon vacancy thereof may, at the option of the
owner, be based upon such previously established legal regulated rent,
as adjusted by the most recent applicable guidelines increases and other
increases authorized by law. [Where, subsequent to vacancy, such legal
regulated rent, as adjusted by the most recent applicable guidelines
increases and any other increases authorized by law is two thousand
dollars or more per month or, for any housing accommodation which is or
becomes vacant on or after the effective date of the rent act of 2011,
is two thousand five hundred dollars or more per month, such housing
accommodation shall be excluded from the provisions of this act pursuant
to paragraph thirteen of subdivision a of section five of this act.]
S 22. Paragraphs 2 and 3 of subdivision (a) of section 5-a of section
4 of chapter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as added by section 30 of part
B of chapter 97 of the laws of 2011, are amended to read as follows:
2. Deregulation income threshold means total annual income equal to
one hundred seventy-five thousand dollars in each of the two preceding
calendar years for proceedings commenced before July first, two thousand
eleven. For proceedings commenced on or after July first, two thousand
eleven, the deregulation income threshold means the total annual income
equal to two hundred thousand dollars in each of the two preceding
calendar years. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO
THOUSAND FIFTEEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL
ANNUAL INCOME EQUAL TO TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS IN EACH
OF THE TWO PRECEDING CALENDAR YEARS.
3. Deregulation rent threshold means two thousand dollars for
proceedings commenced before July first, two thousand eleven. For
proceedings commenced on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars.
FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN,
THE DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND FIVE HUNDRED
DOLLARS.
S 23. Paragraphs 2 and 3 of subdivision (a) of section 2-a of chapter
274 of the laws of 1946, constituting the emergency housing rent control
law, as added by section 32 of part B of chapter 97 of the laws of 2011,
are amended to read as follows:
2. Deregulation income threshold means total annual income equal to
one hundred seventy-five thousand dollars in each of the two preceding
calendar years for proceedings commenced before July first, two thousand
eleven. For proceedings commenced on or after July first, two thousand
eleven, the deregulation income threshold means the total annual income
equal to two hundred thousand dollars in each of the two preceding
calendar years. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO
THOUSAND FIFTEEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL
ANNUAL INCOME EQUAL TO TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS IN EACH
OF THE TWO PRECEDING CALENDAR YEARS.
3. Deregulation rent threshold means two thousand dollars for
proceedings commenced prior to July first, two thousand eleven. For
proceedings commenced on or after July first, two thousand eleven, the
A. 7526 9
deregulation rent threshold means two thousand five hundred dollars.
FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN,
THE DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND FIVE HUNDRED
DOLLARS.
S 24. Paragraphs 2 and 3 of subdivision (a) of section 26-403.1 of the
administrative code of the city of New York, as added by section 34 of
part B of chapter 97 of the laws of 2011, are amended to read as
follows:
2. Deregulation income threshold means total annual income equal to
one hundred seventy-five thousand dollars in each of the two preceding
calendar years for proceedings commenced prior to July first, two thou-
sand eleven. For proceedings commenced on or after July first, two thou-
sand eleven, the deregulation income threshold means the total annual
income equal to two hundred thousand dollars in each of the two preced-
ing calendar years. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST,
TWO THOUSAND FIFTEEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL
ANNUAL INCOME EQUAL TO TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS IN EACH
OF THE TWO PRECEDING CALENDAR YEARS.
3. Deregulation rent threshold means two thousand dollars for
proceedings commenced before July first, two thousand eleven. For
proceedings commenced on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars.
FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN,
THE DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND FIVE HUNDRED
DOLLARS.
S 25. Paragraphs 2 and 3 of subdivision (a) of section 26-504.3 of the
administrative code of the city of New York, as added by section 36 of
part B of chapter 97 of the laws of 2011, are amended to read as
follows:
2. Deregulation income threshold means total annual income equal to
one hundred seventy-five thousand dollars in each of the two preceding
calendar years for proceedings commenced before July first, two thousand
eleven. For proceedings commenced on or after July first, two thousand
eleven, the deregulation income threshold means the total annual income
equal to two hundred thousand dollars in each of the two preceding
calendar years. FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO
THOUSAND FIFTEEN, THE DEREGULATION INCOME THRESHOLD MEANS THE TOTAL
ANNUAL INCOME EQUAL TO TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS IN EACH
OF THE TWO PRECEDING CALENDAR YEARS.
3. Deregulation rent threshold means two thousand dollars for
proceedings commenced before July first, two thousand eleven. For
proceedings commenced on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars.
FOR PROCEEDINGS COMMENCED ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN,
THE DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND FIVE HUNDRED
DOLLARS.
S 26. Paragraph 1 of subdivision b of section 26-408 of the adminis-
trative code of the city of New York is amended to read as follows:
(1) The landlord seeks in good faith to recover possession of a hous-
ing accommodation because of immediate and compelling necessity for his
or her own personal use and occupancy AS HIS OR HER PRIMARY RESIDENCE or
for the use and occupancy of his or her immediate family AS THEIR PRIMA-
RY RESIDENCE provided, however, that this subdivision shall PERMIT
RECOVERY OF ONLY ONE HOUSING ACCOMMODATION AND SHALL not apply where a
member of the household lawfully occupying the housing accommodation is
sixty-two years of age or older, has been a tenant in a housing accommo-
A. 7526 10
dation in that building for [twenty] FIFTEEN years or more, or has an
impairment which results from anatomical, physiological or psychological
conditions, other than addiction to alcohol, gambling, or any controlled
substance, which are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in any substantial gainful
employment; or
S 27. Subparagraph (b) of paragraph 9 of subdivision c of section
26-511 of the administrative code of the city of New York is amended to
read as follows:
(b) where he or she seeks to recover possession of one [or more]
dwelling [units] UNIT BECAUSE OF IMMEDIATE AND COMPELLING NECESSITY for
his or her own personal use and occupancy as his or her primary resi-
dence [in the city of New York and/or] OR for the use and occupancy of a
member of his or her immediate family as his or her primary residence
[in the city of New York], provided however, that this subparagraph
shall PERMIT RECOVERY OF ONLY ONE DWELLING UNIT AND SHALL not apply
where a tenant or the spouse of a tenant lawfully occupying the dwelling
unit is sixty-two years of age or older, HAS BEEN A TENANT IN A DWELLING
UNIT IN THAT BUILDING FOR FIFTEEN YEARS OR MORE, or has an impairment
which results from anatomical, physiological or psychological condi-
tions, other than addiction to alcohol, gambling, or any controlled
substance, which are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in any substantial gainful
employment, unless such owner offers to provide and if requested,
provides an equivalent or superior housing accommodation at the same or
lower stabilized rent in a closely proximate area. The provisions of
this subparagraph shall only permit one of the individual owners of any
building to recover possession of one [or more] dwelling [units] UNIT
for his or her own personal use and/or for that of his or her immediate
family. [Any] A dwelling unit recovered by an owner pursuant to this
subparagraph shall not for a period of three years be rented, leased,
subleased or assigned to any person other than a person for whose bene-
fit recovery of the dwelling unit is permitted pursuant to this subpara-
graph or to the tenant in occupancy at the time of recovery under the
same terms as the original lease. This subparagraph shall not be deemed
to establish or eliminate any claim that the former tenant of the dwell-
ing unit may otherwise have against the owner. Any such rental, lease,
sublease or assignment during such period to any other person may be
subject to a penalty of a forfeiture of the right to any increases in
residential rents in such building for a period of three years; or
S 28. Subdivision a of section 10 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four, as amended by chapter 234 of the laws of 1984, is
amended to read as follows:
a. For cities having a population of less than one million and towns
and villages, the state division of housing and community renewal shall
be empowered to implement this act by appropriate regulations. Such
regulations may encompass such speculative or manipulative practices or
renting or leasing practices as the state division of housing and commu-
nity renewal determines constitute or are likely to cause circumvention
of this act. Such regulations shall prohibit practices which are likely
to prevent any person from asserting any right or remedy granted by this
act, including but not limited to retaliatory termination of periodic
tenancies and shall require owners to grant a new one or two year vacan-
A. 7526 11
cy or renewal lease at the option of the tenant, except where a mortgage
or mortgage commitment existing as of the local effective date of this
act provides that the owner shall not grant a one-year lease; and shall
prescribe standards with respect to the terms and conditions of new and
renewal leases, additional rent and such related matters as security
deposits, advance rental payments, the use of escalator clauses in leas-
es and provision for increase in rentals for garages and other ancillary
facilities, so as to insure that the level of rent adjustments author-
ized under this law will not be subverted and made ineffective. Any
provision of the regulations permitting an owner to refuse to renew a
lease on grounds that the owner seeks to recover possession of [the] A
housing accommodation for his OR HER own use and occupancy or for the
use and occupancy of his OR HER immediate family shall PERMIT RECOVERY
OF ONLY ONE HOUSING ACCOMMODATION, SHALL require that an owner demon-
strate immediate and compelling need AND THAT THE HOUSING ACCOMMODATION
WILL BE THE PROPOSED OCCUPANTS' PRIMARY RESIDENCE and shall not apply
where a member of the housing accommodation is sixty-two years of age or
older, has been a tenant in a housing accommodation in that building for
[twenty] FIFTEEN years or more, or has an impairment which results from
anatomical, physiological or psychological conditions, other than
addiction to alcohol, gambling, or any controlled substance, which are
demonstrable by medically acceptable clinical and laboratory diagnostic
techniques, and which are expected to be permanent and which prevent the
tenant from engaging in any substantial gainful employment.
S 29. Paragraph (a) of subdivision 2 of section 5 of chapter 274 of
the laws of 1946, constituting the emergency housing rent control law,
as amended by chapter 234 of the laws of 1984, is amended to read as
follows:
(a) the landlord seeks in good faith to recover possession of A hous-
ing [accommodations] ACCOMMODATION because of immediate and compelling
necessity for his OR HER own personal use and occupancy AS HIS OR HER
PRIMARY RESIDENCE or for the use and occupancy of his OR HER immediate
family AS THEIR PRIMARY RESIDENCE; provided, however, this subdivision
shall PERMIT RECOVERY OF ONLY ONE HOUSING ACCOMMODATION AND SHALL not
apply where a member of the household lawfully occupying the housing
accommodation is sixty-two years of age or older, has been a tenant in a
housing accommodation in that building for [twenty] FIFTEEN years or
more, or has an impairment which results from anatomical, physiological
or psychological conditions, other than addiction to alcohol, gambling,
or any controlled substance, which are demonstrable by medically accept-
able clinical and laboratory diagnostic techniques, and which are
expected to be permanent and which prevent the tenant from engaging in
any substantial gainful employment; or
S 30. Paragraph 5-a of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 7 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
(5-a) provides that, notwithstanding any provision of this chapter,
the legal regulated rent for any vacancy lease entered into after the
effective date of this paragraph shall be as hereinafter provided in
this paragraph. The previous legal regulated rent for such housing
accommodation shall be increased by the following: (i) if the vacancy
lease is for a term of two years, [twenty] SEVEN AND ONE-HALF percent of
the previous legal regulated rent; or (ii) if the vacancy lease is for a
term of one year the increase shall be [twenty] SEVEN AND ONE-HALF
percent of the previous legal regulated rent less an amount equal to the
difference between (a) the two year renewal lease guideline promulgated
A. 7526 12
by the guidelines board of the city of New York applied to the previous
legal regulated rent and (b) the one year renewal lease guideline
promulgated by the guidelines board of the city of New York applied to
the previous legal regulated rent. In addition, if the legal regulated
rent was not increased with respect to such housing accommodation by a
permanent vacancy allowance within eight years prior to a vacancy lease
executed on or after the effective date of this paragraph, the legal
regulated rent may be further increased by an amount equal to the prod-
uct resulting from multiplying such previous legal regulated rent by
six-tenths of one percent and further multiplying the amount of rent
increase resulting therefrom by the greater of (A) the number of years
since the imposition of the last permanent vacancy allowance, or (B) if
the rent was not increased by a permanent vacancy allowance since the
housing accommodation became subject to this chapter, the number of
years that such housing accommodation has been subject to this chapter.
Provided that if the previous legal regulated rent was less than three
hundred dollars the total increase shall be as calculated above plus one
hundred dollars per month. Provided, further, that if the previous legal
regulated rent was at least three hundred dollars and no more than five
hundred dollars in no event shall the total increase pursuant to this
paragraph be less than one hundred dollars per month. Such increase
shall be in lieu of any allowance authorized for the one or two year
renewal component thereof, but shall be in addition to any other
increases authorized pursuant to this chapter including an adjustment
based upon a major capital improvement, or a substantial modification or
increase of dwelling space or services, or installation of new equipment
or improvements or new furniture or furnishings provided in or to the
housing accommodation pursuant to this section. The increase authorized
in this paragraph may not be implemented more than one time in any
calendar year, notwithstanding the number of vacancy leases entered into
in such year.
S 31. Subdivision (a-1) of section 10 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 8 of part B of chapter 97
of the laws of 2011, is amended to read as follows:
(a-1) provides that, notwithstanding any provision of this act, the
legal regulated rent for any vacancy lease entered into after the effec-
tive date of this subdivision shall be as hereinafter set forth. The
previous legal regulated rent for such housing accommodation shall be
increased by the following: (i) if the vacancy lease is for a term of
two years, [twenty] SEVEN AND ONE-HALF percent of the previous legal
regulated rent; or (ii) if the vacancy lease is for a term of one year
the increase shall be [twenty] SEVEN AND ONE-HALF percent of the previ-
ous legal regulated rent less an amount equal to the difference between
(a) the two year renewal lease guideline promulgated by the guidelines
board of the county in which the housing accommodation is located
applied to the previous legal regulated rent and (b) the one year
renewal lease guideline promulgated by the guidelines board of the coun-
ty in which the housing accommodation is located applied to the previous
legal regulated rent. In addition, if the legal regulated rent was not
increased with respect to such housing accommodation by a permanent
vacancy allowance within eight years prior to a vacancy lease executed
on or after the effective date of this subdivision, the legal regulated
rent may be further increased by an amount equal to the product result-
ing from multiplying such previous legal regulated rent by six-tenths of
one percent and further multiplying the amount of rent increase result-
A. 7526 13
ing therefrom by the greater of (A) the number of years since the impo-
sition of the last permanent vacancy allowance, or (B) if the rent was
not increased by a permanent vacancy allowance since the housing accom-
modation became subject to this act, the number of years that such hous-
ing accommodation has been subject to this act. Provided that if the
previous legal regulated rent was less than three hundred dollars the
total increase shall be as calculated above plus one hundred dollars per
month. Provided, further, that if the previous legal regulated rent was
at least three hundred dollars and no more than five hundred dollars in
no event shall the total increase pursuant to this subdivision be less
than one hundred dollars per month. Such increase shall be in lieu of
any allowance authorized for the one or two year renewal component ther-
eof, but shall be in addition to any other increases authorized pursuant
to this act including an adjustment based upon a major capital improve-
ment, or a substantial modification or increase of dwelling space or
services, or installation of new equipment or improvements or new furni-
ture or furnishings provided in or to the housing accommodation pursuant
to section six of this act. The increase authorized in this subdivision
may not be implemented more than one time in any calendar year, notwith-
standing the number of vacancy leases entered into in such year.
S 32. Subdivision a of section 26-504 of the administrative code of
the city of New York, subparagraph (f) of paragraph 1 as amended by
chapter 422 of the laws of 2010, is amended to read as follows:
a. Class A multiple dwellings not owned as a cooperative or as a
condominium, except as provided in section three hundred fifty-two-eeee
of the general business law, containing six or more dwelling units
which: (1) were completed after February first, nineteen hundred
forty-seven, except dwelling units (a) owned or leased by, or financed
by loans from, a public agency or public benefit corporation, (b)
subject to rent regulation under the private housing finance law or any
other state law, (c) aided by government insurance under any provision
of the national housing act, to the extent this chapter or any regu-
lation or order issued thereunder is inconsistent therewith, or (d)
located in a building for which a certificate of occupancy is obtained
after March tenth, nineteen hundred sixty-nine[;], or (e) any class A
multiple dwelling which on June first, nineteen hundred sixty-eight was
and still is commonly regarded as a hotel, transient hotel or residen-
tial hotel, and which customarily provides hotel service such as maid
service, furnishing and laundering of linen, telephone and bell boy
service, secretarial or desk service and use and upkeep of furniture and
fixtures, or (f) not occupied by the tenant, not including subtenants or
occupants, as his or her primary residence, as determined by a court of
competent jurisdiction, provided, however that no action or proceeding
shall be commenced seeking to recover possession on the ground that a
housing accommodation is not occupied by the tenant as his or her prima-
ry residence unless the owner or lessor shall have given thirty days
notice to the tenant of his or her intention to commence such action or
proceeding on such grounds. For the purposes of determining primary
residency, a tenant who is a victim of domestic violence, as defined in
section four hundred fifty-nine-a of the social services law, who has
left the unit because of such violence, and who asserts an intent to
return to the housing accommodation shall be deemed to be occupying the
unit as his or her primary residence. For the purposes of this subpara-
graph where a housing accommodation is rented to a not-for-profit hospi-
tal for residential use, affiliated subtenants authorized to use such
accommodations by such hospital shall be deemed to be tenants, or (g)
A. 7526 14
became vacant on or after June thirtieth, nineteen hundred seventy-one,
or become vacant, provided however, that this exemption shall not apply
or become effective with respect to housing accommodations which the
commissioner determines or finds became vacant because the landlord or
any person acting on his or her behalf, with intent to cause the tenant
to vacate, engaged in any course of conduct (including but not limited
to, interruption or discontinuance of essential services) which inter-
fered with or disturbed or was intended to interfere with or disturb the
comfort, repose, peace or quiet of the tenant in his or her use or occu-
pancy of the housing accommodations and provided further that any hous-
ing accommodations exempted by this paragraph shall be subject to this
law to the extent provided in subdivision b of this section; or (2) were
decontrolled by the city rent agency pursuant to section 26-414 of this
title; or (3) are exempt from control by virtue of [item] CLAUSE one,
two, six or seven of subparagraph (i) of paragraph two of subdivision e
of section 26-403 of this title; OR (4) WERE COVERED BY A PROJECT BASED
ASSISTANCE CONTRACT PURSUANT TO SECTION EIGHT OF THE UNITED STATES HOUS-
ING ACT OF 1937 WHICH CONTRACT IS NO LONGER IN EFFECT, NOTWITHSTANDING
THE PROVISIONS OF SUBPARAGRAPH (D) OR (G) OF PARAGRAPH ONE OF THIS
SUBDIVISION OR PARAGRAPH FIVE OF SUBDIVISION A OF SECTION FIVE OF THE
EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR BUT SUBJECT TO
ANY OTHER APPLICABLE EXCEPTIONS IN PARAGRAPH ONE OF THIS SUBDIVISION OR
SUBDIVISION (A) OF SECTION FIVE OF THE EMERGENCY TENANT PROTECTION ACT
OF NINETEEN SEVENTY-FOUR, PROVIDED HOWEVER, THAT ANY DWELLING UNIT WHICH
BECOMES SUBJECT TO THIS LAW PURSUANT TO THIS PARAGRAPH SHALL NOT BE
SUBJECT TO THE PROVISIONS OF SUBDIVISION A OF SECTION 26-513 OF THIS
CHAPTER; and
S 33. Section 5 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 c to read as follows:
C. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH FIVE OF SUBDIVISION A
OF THIS SECTION BUT SUBJECT TO ANY OTHER APPLICABLE EXCEPTIONS IN SUCH
SUBDIVISION, NOTHING SHALL PREVENT THE DECLARATION OF AN EMERGENCY
PURSUANT TO SECTION THREE OF THIS ACT FOR RENTAL HOUSING ACCOMMODATIONS
LOCATED IN A BUILDING WHICH WAS COVERED BY A PROJECT BASED ASSISTANCE
CONTRACT PURSUANT TO SECTION EIGHT OF THE UNITED STATES HOUSING ACT OF
1937 WHICH CONTRACT IS NO LONGER IN EFFECT PROVIDED HOWEVER, THAT ANY
HOUSING ACCOMMODATION WHICH BECOMES SUBJECT TO THIS ACT PURSUANT TO THIS
SUBDIVISION SHALL NOT BE SUBJECT TO THE PROVISIONS OF SUBDIVISION A OF
SECTION NINE OF THIS ACT.
S 34. Subparagraph (g) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990, is amended to read as follows:
(g) (I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT AUTHORIZED PURSU-
ANT TO ITEM (II) OF THIS SUBPARAGRAPH SHALL CEASE WHEN THE OWNER HAS
RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT;
(II) There has been since July first, nineteen hundred seventy, a
major capital improvement [required for the operation, preservation or
maintenance of the structure. An adjustment under this subparagraph (g)
shall be in an amount sufficient to amortize the cost of the improve-
ments pursuant to this subparagraph (g) over a seven-year period];
PROVIDED THAT THE COMMISSIONER FIRST FINDS THAT SUCH IMPROVEMENTS ARE
DEEMED DEPRECIABLE UNDER THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS
ARE REQUIRED FOR THE OPERATION OR PRESERVATION OF THE STRUCTURE. NO
APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT INCREASE MAY BE
APPROVED IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE TIME
A. 7526 15
OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
REGULATIONS OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OR ANY
AGENCY ADMINISTERING AND ENFORCING A BUILDING CODE IN THE JURISDICTION
IN WHICH THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
ALLEVIATION OF THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE
PROVISIONS OF THIS SECTION. EXCEPT IN THE CASE OF EMERGENCY OR GOOD
CAUSE, THE OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS
BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL A STATEMENT CONTAINING INFORMATION OUTLINING THE
SCOPE OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDA-
VIT SETTING FORTH THE FOLLOWING INFORMATION: (A) EVERY OWNER OF RECORD
AND OWNER OF A SUBSTANTIAL INTEREST IN THE PROPERTY OR ENTITY OWNING THE
PROPERTY OR SPONSORING THE IMPROVEMENT; AND (B) A STATEMENT THAT NONE OF
SUCH PERSONS HAD, WITHIN THE FIVE YEARS PRIOR TO THE IMPROVEMENT, BEEN
FOUND TO HAVE HARASSED OR UNLAWFULLY EVICTED TENANTS BY JUDGMENT OR
DETERMINATION OF A COURT OR AGENCY UNDER THE PENAL LAW, ANY STATE OR
LOCAL LAW REGULATING RENTS OR ANY STATE OR LOCAL LAW RELATING TO HARASS-
MENT OF TENANTS OR UNLAWFUL EVICTION. UPON RECEIPT OF THE SCOPE OF WORK
AND AFFIDAVIT PROVIDED FOR HEREIN, THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL SHALL PROVIDE THE TENANTS IN OCCUPANCY IN SUCH BUILDINGS WITH
SUCH INFORMATION. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL,
IN ADDITION, IMPLEMENT PROCEDURES INCLUDING, BUT NOT LIMITED TO, ELICIT-
ING TENANT COMMENTS TO DETERMINE WHETHER MAJOR CAPITAL IMPROVEMENT REHA-
BILITATION WORK HAS BEEN SATISFACTORILY COMPLETED. NO MAJOR CAPITAL
IMPROVEMENT RENT INCREASE SHALL BECOME EFFECTIVE UNTIL ANY DEFECTIVE OR
DEFICIENT REHABILITATION WORK HAS BEEN CURED. THE INCREASE PERMITTED FOR
SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO
THE MAXIMUM RENT. IT SHALL BE SEPARATELY DESIGNATED AND BILLED AS SUCH
AND SHALL NOT BE COMPOUNDED BY ANY OTHER ADJUSTMENT TO THE MAXIMUM RENT.
THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO
THE COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE
NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF
ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY
APARTMENT IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT
OF THE MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET
FORTH IN THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT
SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER
SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD
UNTIL THE TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE
AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY. NOTWITHSTANDING ANY
LAW TO THE CONTRARY, WHEN CALCULATING A SURCHARGE, THE COST OF THE
IMPROVEMENT SHALL BE REDUCED BY ANY MONEYS PROVIDED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY; or
S 35. Subparagraph (k) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990, is amended to read as follows:
(k) The landlord has incurred, since January first, nineteen hundred
seventy, in connection with and in addition to a concurrent major capi-
tal improvement pursuant to subparagraph (g) of this paragraph, other
expenditures to improve, restore or preserve the quality of the struc-
ture. An adjustment under this subparagraph shall be granted only if
such improvements represent an expenditure equal to at least ten per
centum of the total operating and maintenance expenses for the preceding
year. An adjustment under this subparagraph shall be in addition to any
adjustment granted for the concurrent major capital improvement and
A. 7526 16
shall be [in an amount sufficient to amortize the cost of the improve-
ments pursuant to this subparagraph over a seven-year period] IMPLE-
MENTED IN THE SAME MANNER AS SUCH MAJOR CAPITAL IMPROVEMENT AS A FURTHER
SURCHARGE TO THE MAXIMUM RENT.
S 36. Paragraph 6 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by chapter 116 of the
laws of 1997, is amended to read as follows:
(6) provides criteria whereby the commissioner may act upon applica-
tions by owners for increases in excess of the level of fair rent
increase established under this law provided, however, that such crite-
ria shall provide [(a) as] IN REGARD to hardship applications, for a
finding that the level of fair rent increase is not sufficient to enable
the owner to maintain approximately the same average annual net income
(which shall be computed without regard to debt service, financing costs
or management fees) for the three year period ending on or within six
months of the date of an application pursuant to such criteria as
compared with annual net income, which prevailed on the average over the
period nineteen hundred sixty-eight through nineteen hundred seventy, or
for the first three years of operation if the building was completed
since nineteen hundred sixty-eight or for the first three fiscal years
after a transfer of title to a new owner provided the new owner can
establish to the satisfaction of the commissioner that he or she
acquired title to the building as a result of a bona fide sale of the
entire building and that the new owner is unable to obtain requisite
records for the fiscal years nineteen hundred sixty-eight through nine-
teen hundred seventy despite diligent efforts to obtain same from prede-
cessors in title and further provided that the new owner can provide
financial data covering a minimum of six years under his or her contin-
uous and uninterrupted operation of the building to meet the three year
to three year comparative test periods herein provided[; and (b) as to
completed building-wide major capital improvements, for a finding that
such improvements are deemed depreciable under the Internal Revenue Code
and that the cost is to be amortized over a seven-year period, based
upon cash purchase price exclusive of interest or service charges].
Notwithstanding anything to the contrary contained herein, no hardship
increase granted pursuant to this paragraph shall, when added to the
annual gross rents, as determined by the commissioner, exceed the sum
of, (i) the annual operating expenses, (ii) an allowance for management
services as determined by the commissioner, (iii) actual annual mortgage
debt service (interest and amortization) on its indebtedness to a lend-
ing institution, an insurance company, a retirement fund or welfare fund
which is operated under the supervision of the banking or insurance laws
of the state of New York or the United States, and (iv) eight and one-
half percent of that portion of the fair market value of the property
which exceeds the unpaid principal amount of the mortgage indebtedness
referred to in subparagraph (iii) of this paragraph. Fair market value
for the purposes of this paragraph shall be six times the annual gross
rent. The collection of any increase in the stabilized rent for any
apartment pursuant to this paragraph shall not exceed six percent in any
year from the effective date of the order granting the increase over the
rent set forth in the schedule of gross rents, with collectability of
any dollar excess above said sum to be spread forward in similar incre-
ments and added to the stabilized rent as established or set in future
years;
A. 7526 17
S 37. Subdivision c of section 26-511 of the administrative code of
the city of New York is amended by adding four new paragraphs 6-b, 6-c,
6-d and 6-e to read as follows:
(6-B) PROVIDES CRITERIA WHEREBY THE COMMISSIONER MAY ACT UPON APPLICA-
TION BY OWNERS FOR INCREASES IN EXCESS OF THE LEVEL OF FAIR RENT
INCREASE ESTABLISHED UNDER THIS LAW PROVIDED, HOWEVER, THAT SUCH CRITE-
RIA SHALL PROVIDE THAT:
(I) AS TO COMPLETED BUILDING-WIDE MAJOR CAPITAL IMPROVEMENTS, FIRST,
THAT A FINDING THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER THE
INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE OPERA-
TION OR PRESERVATION OF THE STRUCTURE;
(II) NO APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT INCREASE MAY
BE APPROVED IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE
TIME OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
REGULATIONS OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OR ANY
AGENCY ADMINISTERING AND ENFORCING A BUILDING CODE IN THE JURISDICTION
IN WHICH THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
ALLEVIATION OF THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE
PROVISIONS OF THIS SECTION. EXCEPT IN THE CASE OF EMERGENCY OR GOOD
CAUSE, THE OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS
BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL A STATEMENT CONTAINING INFORMATION OUTLINING THE
SCOPE OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDA-
VIT SETTING FORTH THE FOLLOWING INFORMATION:
(A) EVERY OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST IN THE
PROPERTY OR ENTITY OWNING THE PROPERTY OR SPONSORING THE IMPROVEMENT;
AND
(B) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE YEARS
PRIOR TO THE IMPROVEMENT, BEEN FOUND TO HAVE HARASSED OR UNLAWFULLY
EVICTED TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY UNDER
THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR
LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.
UPON RECEIPT OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED FOR HEREIN,
THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE TENANTS
IN OCCUPANCY IN SUCH BUILDINGS WITH SUCH INFORMATION. THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL SHALL, IN ADDITION, IMPLEMENT PROCEDURES
INCLUDING, BUT NOT LIMITED TO, ELICITING TENANT COMMENTS TO DETERMINE
WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
TORILY COMPLETED. NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE SHALL
BECOME EFFECTIVE UNTIL ANY DEFECTIVE OR DEFICIENT REHABILITATION WORK
HAS BEEN CURED.
(6-C) THE INCREASE PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE
COLLECTED AS A MONTHLY SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL
BE SEPARATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED
BY ANY ANNUAL ADJUSTMENT OF THE LEVEL OF FAIR RENT PROVIDED FOR UNDER
SUBDIVISION B OF SECTION 26-510 OF THIS LAW. THE SURCHARGE ALLOCABLE TO
EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT
DIVIDED BY EIGHTY-FOUR DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING,
AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED
THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT, IN ANY ONE YEAR MAY NOT
EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY
THE OWNER FOR SUCH APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS
RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED FORWARD AND
COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDI-
TIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE
A. 7526 18
EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT
LIMITATION DID NOT APPLY.
(6-D) COLLECTION OF SURCHARGES IN EXCESS OF THE LEVEL OF FAIR RENT
AUTHORIZED PURSUANT TO PARAGRAPH SIX-B AND SIX-C OF THIS SUBDIVISION
SHALL CEASE WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL
IMPROVEMENT.
(6-E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, WHEN CALCULATING A
SURCHARGE, THE COST OF THE IMPROVEMENT SHALL BE REDUCED BY ANY MONEYS
PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
TY.
S 38. Paragraph 3 of subdivision d of section 6 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by chapter 749 of
the laws of 1990, is amended to read as follows:
(3) (I) COLLECTION OF SURCHARGES IN ADDITION TO THE LEGAL REGULATED
RENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH SHALL
CEASE WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL
IMPROVEMENT;
(II) there has been since January first, nineteen hundred seventy-four
a major capital improvement [required for the operation, preservation or
maintenance of the structure. An adjustment under this paragraph shall
be in an amount sufficient to amortize the cost of the improvements
pursuant to this paragraph over a seven-year period]; PROVIDED THAT THE
COMMISSIONER FIRST FINDS THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE
UNDER THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR
THE OPERATION OR PRESERVATION OF THE STRUCTURE. NO APPLICATION FOR A
MAJOR CAPITAL IMPROVEMENT RENT INCREASE MAY BE APPROVED IF THERE EXIST
ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE TIME OF THE CONSIDERATION OF
SUCH APPLICATION, AS DETERMINED PURSUANT TO REGULATIONS OF THE DIVISION
OF HOUSING AND COMMUNITY RENEWAL OR ANY AGENCY ADMINISTERING AND ENFORC-
ING A BUILDING CODE IN THE JURISDICTION IN WHICH THE PROPERTY IS
LOCATED, UNLESS IT IS DETERMINED BY THE DIVISION OF HOUSING AND COMMUNI-
TY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE ALLEVIATION OF THE
VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE PROVISIONS OF THIS
SECTION. EXCEPT IN THE CASE OF EMERGENCY OR GOOD CAUSE, THE OWNER OF THE
PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS BEFORE THE COMMENCEMENT
OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL A
STATEMENT CONTAINING INFORMATION OUTLINING THE SCOPE OF WORK, EXPECTED
DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDAVIT SETTING FORTH THE
FOLLOWING INFORMATION: (A) EVERY OWNER OF RECORD AND OWNER OF A SUBSTAN-
TIAL INTEREST IN THE PROPERTY OR ENTITY OWNING THE PROPERTY OR SPONSOR-
ING THE IMPROVEMENT; AND (B) A STATEMENT THAT NONE OF SUCH PERSONS HAD,
WITHIN THE FIVE YEARS PRIOR TO THE IMPROVEMENT, BEEN FOUND TO HAVE
HARASSED OR UNLAWFULLY EVICTED TENANTS BY JUDGMENT OR DETERMINATION OF A
COURT OR AGENCY UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING
RENTS OR ANY STATE OR LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR
UNLAWFUL EVICTION. UPON RECEIPT OF THE SCOPE OF WORK AND AFFIDAVIT
PROVIDED FOR HEREIN, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL
PROVIDE THE TENANTS IN OCCUPANCY IN SUCH BUILDINGS WITH SUCH INFORMA-
TION. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL, IN ADDITION,
IMPLEMENT PROCEDURES INCLUDING, BUT NOT LIMITED TO, ELICITING TENANT
COMMENTS TO DETERMINE WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION
WORK HAS BEEN SATISFACTORILY COMPLETED. NO MAJOR CAPITAL IMPROVEMENT
RENT INCREASE SHALL BECOME EFFECTIVE UNTIL ANY DEFECTIVE OR DEFICIENT
REHABILITATION WORK HAS BEEN CURED. THE INCREASE PERMITTED FOR SUCH
CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO THE
A. 7526 19
LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED AND BILLED AS
SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL RENT ADJUSTMENT AUTHOR-
IZED BY THE RENT GUIDELINES BOARD UNDER THIS ACT. THE SURCHARGE ALLOCA-
BLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF THE
IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN
THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APART-
MENT; PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT IN ANY ONE
YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT
COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET FORTH IN THE SCHEDULE
OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED
FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO
EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE TOTAL
SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX
PERCENT LIMITATION DID NOT APPLY. NOTWITHSTANDING ANY LAW TO THE CONTRA-
RY, WHEN CALCULATING A SURCHARGE, THE COST OF THE IMPROVEMENT SHALL BE
REDUCED BY ANY MONEYS PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY, or
S 39. 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 valuation
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 property, excluding mort-
gage interest and amortization, and excluding allowances for obsoles-
cence 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 buildings 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 compen-
sated by increases in rental income sufficient to offset unavoidable
increases in property taxes, fuel, utilities, insurance and repairs and
maintenance, excluding 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 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
A. 7526 20
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 excluding 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 hous-
ing 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 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 installation of new equipment or improvements or new furni-
ture or furnishings provided in or to a tenant's housing accommodation.
AN ADJUSTMENT AUTHORIZED PURSUANT TO THIS CLAUSE SHALL BE COLLECTED AS A
MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPARATELY DESIGNATED
AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY OTHER ADJUSTMENT
TO THE MAXIMUM RENT. 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, in the
case of a building with more than thirty-five housing accommodations
where such permanent increase takes effect on or after September twen-
ty-fourth, two thousand eleven,] ONE EIGHTY-FOURTH 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 AND COSMETIC
IMPROVEMENTS 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 furni-
ture 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 (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)
(I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT AUTHORIZED PURSUANT TO
ITEM (II) OF THIS CLAUSE SHALL CEASE WHEN THE OWNER HAS RECOVERED THE
COST OF THE MAJOR CAPITAL IMPROVEMENT; (II) there has been since March
first, nineteen hundred fifty, a major capital improvement [required for
the operation, preservation or maintenance of the structure]; PROVIDED
THAT THE COMMISSIONER FIRST FINDS THAT SUCH IMPROVEMENTS ARE DEEMED
DEPRECIABLE UNDER THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE
REQUIRED FOR THE OPERATION OR PRESERVATION OF THE STRUCTURE. NO APPLI-
CATION FOR A MAJOR CAPITAL IMPROVEMENT RENT INCREASE MAY BE APPROVED IF
THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE TIME OF THE
CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO REGULATIONS
OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OR ANY AGENCY ADMINIS-
TERING AND ENFORCING A BUILDING CODE IN THE JURISDICTION IN WHICH THE
A. 7526 21
PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE ALLEVIATION OF
THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE PROVISIONS OF
THIS SECTION. EXCEPT IN THE CASE OF EMERGENCY OR GOOD CAUSE, THE OWNER
OF THE PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS BEFORE THE
COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL A STATEMENT CONTAINING INFORMATION OUTLINING THE SCOPE OF
WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDAVIT SETTING
FORTH THE FOLLOWING INFORMATION: (A) EVERY OWNER OF RECORD AND OWNER OF
A SUBSTANTIAL INTEREST IN THE PROPERTY OR ENTITY OWNING THE PROPERTY OR
SPONSORING THE IMPROVEMENT; AND (B) A STATEMENT THAT NONE OF SUCH
PERSONS HAD, WITHIN THE FIVE YEARS PRIOR TO THE IMPROVEMENT, BEEN FOUND
TO HAVE HARASSED OR UNLAWFULLY EVICTED TENANTS BY JUDGMENT OR DETERMI-
NATION OF A COURT OR AGENCY UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW
REGULATING RENTS OR ANY STATE OR LOCAL LAW RELATING TO HARASSMENT OF
TENANTS OR UNLAWFUL EVICTION. UPON RECEIPT OF THE SCOPE OF WORK AND
AFFIDAVIT PROVIDED FOR HEREIN, THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL SHALL PROVIDE THE TENANTS IN OCCUPANCY IN SUCH BUILDINGS WITH
SUCH INFORMATION. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL,
IN ADDITION, IMPLEMENT PROCEDURES INCLUDING, BUT NOT LIMITED TO, ELICIT-
ING TENANT COMMENTS TO DETERMINE WHETHER MAJOR CAPITAL IMPROVEMENT REHA-
BILITATION WORK HAS BEEN SATISFACTORILY COMPLETED. NO MAJOR CAPITAL
IMPROVEMENT RENT INCREASE SHALL BECOME EFFECTIVE UNTIL ANY DEFECTIVE OR
DEFICIENT REHABILITATION WORK HAS BEEN CURED. THE INCREASE PERMITTED FOR
SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO
THE MAXIMUM RENT. IT SHALL BE SEPARATELY DESIGNATED AND BILLED AS SUCH
AND SHALL NOT BE COMPOUNDED BY ANY OTHER ADJUSTMENT TO THE MAXIMUM RENT.
THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO
THE COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE
NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF
ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY
APARTMENT IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT
OF THE MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET
FORTH IN THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT
SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER
SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD
UNTIL THE TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE
AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY. NOTWITHSTANDING ANY
LAW TO THE CONTRARY, WHEN CALCULATING A SURCHARGE, THE COST OF THE
IMPROVEMENT SHALL BE REDUCED BY ANY MONEYS PROVIDED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY; or (8) there has been
since March first, nineteen hundred fifty, in structures containing more
than four housing accommodations, other improvements made with the
express consent of the tenants in occupancy of at least seventy-five per
centum of the housing accommodations, provided, however, that no adjust-
ment 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 occupants who are not members of the
immediate family of the tenant, and the landlord has not been compen-
sated 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
A. 7526 22
rents generally prevailing in the same area for substantially similar
housing accommodations.
S 40. Subdivision dd of section 11-243 of the administrative code of
the city of New York, as added by local law number 41 of the city of New
York for the year 1988, is amended to read as follows:
dd. [Partial waiver] WAIVER of rent adjustments attributable to major
capital improvements. (1) The provisions of this subdivision apply to
and are additional requirements for claiming or receiving any tax abate-
ment under this section, except as provided in paragraphs three and four
of this subdivision.
(2) The owner of the property shall file with the department of hous-
ing preservation and development, on the date any application for bene-
fits is made, a declaration stating that in consideration of any tax
abatement benefits which may be received pursuant to such application
for alterations or improvements constituting a major capital improve-
ment, such owner agrees to waive the collection of a [portion of the
total annual amount of any] rent adjustment attributable to such major
capital improvement which may be granted by the New York state division
of housing and community renewal pursuant to the rent stabilization code
equal to [one-half of] the total annual amount of the tax abatement
benefits which the property receives pursuant to such application with
respect to such alterations or improvements. Such waiver shall commence
on the date of the first collection of such rent adjustment, provided
that, in the event that such tax abatement benefits were received prior
to such first collection, the amount waived shall be increased to
account for such tax abatement benefits so received. Following the
expiration of a tax abatement for alterations or improvements constitut-
ing a major capital improvement for which a rent adjustment has been
granted by such division, the owner may collect the full amount of annu-
al rent permitted pursuant to such rent adjustment. A copy of such
declaration shall be filed simultaneously with the New York state divi-
sion of housing and community renewal. Such declaration shall be binding
upon such owner, and his or her successors and assigns.
(3) The provisions of this subdivision shall not apply to substantial
rehabilitation of buildings vacant when alterations or improvements are
commenced or to buildings rehabilitated with the substantial assistance
of city, state or federal subsidies.
(4) The provisions of this subdivision shall apply only to alterations
and improvements commenced after its effective date.
S 41. 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 AUTHORIZED PURSUANT TO THIS
SUBPARAGRAPH SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM
RENT. IT SHALL BE SEPARATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT
BE COMPOUNDED BY ANY OTHER ADJUSTMENT TO THE MAXIMUM RENT. 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-six-
tieth, in the case of a building with more than thirty-five housing
accommodations where such adjustment takes effect on or after September
twenty-fourth, two thousand eleven,] ONE EIGHTY-FOURTH of the total cost
incurred by the landlord in providing such modification or increase in
A. 7526 23
dwelling space, services, furniture, furnishings or equipment, including
the cost of installation, but excluding finance charges AND COSMETIC
IMPROVEMENTS, provided further that an owner who is entitled to a rent
increase pursuant to this subparagraph 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 city rent agency of any such adjustment pursuant to this
subparagraph; or
S 42. Subdivision g of section 26-405 of the administrative code of
the city of New York is amended by adding a new paragraph 8 to read as
follows:
(8) (A) WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
PARAGRAPH, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE A
SCHEDULE OF REASONABLE COSTS FOR UPGRADES AND IMPROVEMENTS THAT MAY BE
CLAIMED AS A BASIS FOR AN ADJUSTMENT OF RENT PURSUANT TO SUBPARAGRAPH
(E) OF PARAGRAPH ONE OF THIS SUBDIVISION. THE SCHEDULE OF REASONABLE
COSTS SHALL EXCLUDE COSMETIC IMPROVEMENTS. THE SCHEDULE OF REASONABLE
COSTS SHALL BE BASED ON THE AVERAGE COSTS FOR SIMILAR UPGRADES OR
IMPROVEMENTS MADE TO COMPARABLE PROPERTIES LOCATED IN EACH COUNTY,
SUBJECT TO THE PROVISIONS OF THIS CHAPTER, AND SHALL BE UPDATED AT LEAST
ONCE EVERY TWO YEARS. NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER
SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS SUBDIVISION BASED UPON COSTS
THAT EXCEED THE REASONABLE COSTS SET FORTH IN THE SCHEDULE, UNLESS
APPROVED BY THE DIVISION PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH.
(B) WITHIN THIRTY DAYS OF THE SIGNING OF A MUTUAL VOLUNTARY WRITTEN
AGREEMENT INCLUDING A RENT INCREASE PURSUANT TO SUBPARAGRAPH (E) OF
PARAGRAPH ONE OF THIS SUBDIVISION THAT INCLUDES IMPROVEMENTS THAT EXCEED
THE SCHEDULE OF REASONABLE COSTS PURSUANT TO SUBPARAGRAPH (A) OF THIS
PARAGRAPH, THE LANDLORD WILL FILE WITH THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL AN EXPLANATION OF HOW THE RENT WAS COMPUTED, AND ALL
DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUD-
ING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS
CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY
INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE WITH ADJUSTMENTS
PERMITTED BY LAW. UPON RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE LAND-
LORD, AND AFTER GIVING THE TENANT AN OPPORTUNITY TO RESPOND, THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN ORDER APPROVING OR
DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART.
(C) WITHIN THIRTY DAYS OF THE SIGNING OF A MUTUAL VOLUNTARY WRITTEN
AGREEMENT INCLUDING A RENT INCREASE THAT EXCEEDS TEN PERCENT OF THE
MAXIMUM COLLECTIBLE RENT, THE LANDLORD WILL FILE WITH THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL AN EXPLANATION OF HOW THE 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 A
STATEMENT THAT ANY INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE
WITH ADJUSTMENTS PERMITTED BY LAW. UPON RECEIPT OF ALL DOCUMENTS
SUBMITTED BY THE OWNER, AND AFTER GIVING THE TENANT 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 RENT APPROVED BY THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL.
A. 7526 24
(D) NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER SUBPARAGRAPH (E) OF
PARAGRAPH ONE OF THIS SUBDIVISION UNTIL:
(1) THE LANDLORD HAS PROVIDED THE TENANT WITH A WRITTEN NOTICE,
INCLUDING AN EXPLANATION OF HOW THE RENT IN THE MUTUAL VOLUNTARY WRITTEN
AGREEMENT HAS BEEN COMPUTED, AND THE SPECIFIC AMOUNTS OF ALL EXPENDI-
TURES SUPPORTING A RENT INCREASE UNDER SUBPARAGRAPH (E) OF PARAGRAPH ONE
OF THIS SUBDIVISION; AND
(2) THE LANDLORD HAS FILED WITH THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL AN EXPLANATION OF HOW THE 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 ENTERED INTO
CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED, AND A STATEMENT THAT
ANY INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE WITH ADJUSTMENTS
PERMITTED BY LAW.
(E) NO INCREASE SHALL BE COLLECTIBLE UNDER SUBPARAGRAPH (E) OF PARA-
GRAPH ONE OF THIS SUBDIVISION WHERE THE DIVISION OF HOUSING AND COMMUNI-
TY RENEWAL HAS DETERMINED THAT THE OWNER IS NOT MAINTAINING ALL BUILD-
ING-WIDE REQUIRED SERVICES OR ALL REQUIRED SERVICES WITH RESPECT TO THE
AFFECTED HOUSING ACCOMMODATION, OR WHERE THERE ARE CURRENT OR OUTSTAND-
ING HAZARDOUS VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE OR FEDERAL LAW
WHICH RELATE TO THE MAINTENANCE OF SUCH SERVICES.
S 43. 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) AN ADJUSTMENT AUTHORIZED PURSUANT TO THIS SUBPARAGRAPH SHALL BE
COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPA-
RATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY
OTHER ADJUSTMENT TO THE MAXIMUM RENT. 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 hous-
ing 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,]
ONE EIGHTY-FOURTH 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 AND COSMETIC IMPROVEMENTS.
(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.
S 44. Subdivision c of section 26-511 of the administrative code of
the city of New York is amended by adding a new paragraph 15 to read as
follows:
(15) (A) WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
PARAGRAPH, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE A
SCHEDULE OF REASONABLE COSTS FOR UPGRADES AND IMPROVEMENTS THAT MAY BE
CLAIMED AS A BASIS FOR AN ADJUSTMENT OF RENT PURSUANT TO PARAGRAPH THIR-
A. 7526 25
TEEN OF THIS SUBDIVISION. THE SCHEDULE OF REASONABLE COSTS SHALL
EXCLUDE COSMETIC IMPROVEMENTS. THE SCHEDULE OF REASONABLE COSTS SHALL
BE BASED ON THE AVERAGE COSTS FOR SIMILAR UPGRADES OR IMPROVEMENTS MADE
TO COMPARABLE PROPERTIES LOCATED IN EACH COUNTY, SUBJECT TO THE
PROVISIONS OF THIS CHAPTER, AND SHALL BE UPDATED AT LEAST ONCE EVERY TWO
YEARS. NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER PARAGRAPH THIRTEEN
OF THIS SUBDIVISION BASED UPON COSTS THAT EXCEED THE REASONABLE COSTS
SET FORTH IN THE SCHEDULE, UNLESS APPROVED BY THE DIVISION PURSUANT TO
SUBPARAGRAPH (B) OF THIS PARAGRAPH.
(B) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE PURSUANT TO PARAGRAPH THIRTEEN OF THIS SUBDIVISION THAT
INCLUDES IMPROVEMENTS THAT EXCEED THE SCHEDULE OF REASONABLE COSTS
PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE LANDLORD WILL FILE
WITH THE DIVISION 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 A STATEMENT THAT ANY INCREASE ABOVE THE PREVI-
OUS RENT IS IN ACCORDANCE WITH ADJUSTMENTS PERMITTED BY LAW. UPON
RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE LANDLORD, AND AFTER GIVING THE
TENANT NAMED IN THE VACANCY LEASE AN OPPORTUNITY TO RESPOND, THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN ORDER APPROVING OR
DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART.
(C) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE THAT EXCEEDS TEN PERCENT OF THE RENT CHARGED TO THE PREVI-
OUS TENANT, THE LANDLORD WILL FILE WITH THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL AN EXPLANATION OF HOW THE RENT WAS COMPUTED, AND ALL
DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUD-
ING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS
CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY
INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE WITH ADJUSTMENTS
PERMITTED BY LAW. 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 RENT APPROVED BY THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL.
(D) NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER PARAGRAPH THIRTEEN
OF THIS SUBDIVISION UNTIL:
(I) THE LANDLORD HAS PROVIDED THE TENANT WITH A WRITTEN NOTICE,
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 PARAGRAPH THIRTEEN OF THIS SUBDIVISION; AND
(II) THE LANDLORD HAS FILED WITH THE DIVISION 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, INCLUD-
ING, BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS
ENTERED INTO CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED, AND A
STATEMENT THAT ANY INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE
WITH ADJUSTMENTS PERMITTED BY LAW.
(E) NO INCREASE SHALL BE COLLECTIBLE UNDER PARAGRAPH THIRTEEN OF THIS
SUBDIVISION 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
A. 7526 26
ACCOMMODATION, OR WHERE THERE ARE CURRENT OR OUTSTANDING HAZARDOUS
VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE OR FEDERAL LAW WHICH RELATE
TO THE MAINTENANCE OF SUCH SERVICES.
S 45. Paragraph 1 of subdivision d of section 6 of section 4 of chap-
ter 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) AN ADJUSTMENT AUTHORIZED PURSUANT TO THIS SUBPARAGRAPH SHALL BE
COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPA-
RATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY
OTHER ADJUSTMENT TO THE MAXIMUM RENT. 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 hous-
ing 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,]
ONE EIGHTY-FOURTH 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 AND COSMETIC IMPROVEMENTS.
(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) 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 PARA-
GRAPH 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. THE OWNER SHALL FILE WITH THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL ALL DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF
SUCH INCREASE, INCLUDING, BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES
AND SIGNED CONTRACTS ENTERED INTO CONTEMPORANEOUSLY WITH THE IMPROVE-
MENTS ALLEGED.
S 46. Subdivision d of section 6 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four, is amended by adding a new paragraph 6 to read as
follows:
(6) (A) WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
PARAGRAPH, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE A
SCHEDULE OF REASONABLE COSTS FOR UPGRADES AND IMPROVEMENTS THAT MAY BE
CLAIMED AS A BASIS FOR AN ADJUSTMENT OF RENT PURSUANT TO PARAGRAPH ONE
OF THIS SUBDIVISION. THE SCHEDULE OF REASONABLE COSTS SHALL EXCLUDE
COSMETIC IMPROVEMENTS. THE SCHEDULE OF REASONABLE COSTS SHALL BE BASED
ON THE AVERAGE COSTS FOR SIMILAR UPGRADES OR IMPROVEMENTS MADE TO COMPA-
RABLE PROPERTIES LOCATED IN EACH COUNTY, SUBJECT TO THE PROVISIONS OF
A. 7526 27
THIS ACT, AND SHALL BE UPDATED AT LEAST ONCE EVERY TWO YEARS. NO
INCREASE IN RENT SHALL BE COLLECTIBLE UNDER PARAGRAPH ONE OF THIS SUBDI-
VISION BASED UPON COSTS THAT EXCEED THE REASONABLE COSTS SET FORTH IN
THE SCHEDULE, UNLESS APPROVED BY THE DIVISION PURSUANT TO SUBPARAGRAPH
(B) OF THIS PARAGRAPH.
(B) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION THAT
INCLUDES IMPROVEMENTS THAT EXCEED THE SCHEDULE OF REASONABLE COSTS
PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE LANDLORD WILL FILE
WITH THE DIVISION 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 A STATEMENT THAT ANY INCREASE ABOVE THE PREVI-
OUS RENT IS IN ACCORDANCE WITH ADJUSTMENTS PERMITTED BY LAW. UPON
RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE LANDLORD, AND AFTER GIVING THE
TENANT NAMED IN THE VACANCY LEASE AN OPPORTUNITY TO RESPOND, THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN ORDER APPROVING OR
DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART.
(C) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE THAT EXCEEDS TEN PERCENT OF THE RENT CHARGED TO THE PREVI-
OUS TENANT, THE LANDLORD WILL FILE WITH THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL AN EXPLANATION OF HOW THE RENT WAS COMPUTED, AND ALL
DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUD-
ING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS
CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY
INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE WITH ADJUSTMENTS
PERMITTED BY LAW. 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 RENT APPROVED BY THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL.
(D) NO INCREASE SHALL BE COLLECTIBLE UNDER PARAGRAPH ONE OF THIS
SUBDIVISION 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 OR OUTSTANDING HAZARDOUS
VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE OR FEDERAL LAW WHICH RELATE
TO THE MAINTENANCE OF SUCH SERVICES.
S 47. Paragraph 6-a of subdivision c of section 26-511 of the adminis-
trative code of the city of New York is amended to read as follows:
(6-a) provides criteria whereby as an alternative to the hardship
application provided under paragraph six of this subdivision owners of
buildings acquired by the same owner or a related entity owned by the
same principals [three] SIX years prior to the date of application may
apply to the division for increases in excess of the level of applicable
guideline increases established under this law based on a finding by the
commissioner that such guideline increases are not sufficient to enable
the owner to maintain an annual gross rent income for such building
which exceeds the annual operating expenses of such building by a sum
equal to at least five percent of such gross rent. For the purposes of
this paragraph, operating expenses shall consist of the actual, reason-
able, costs of fuel, labor, utilities, taxes, other than income or
A. 7526 28
corporate franchise taxes, fees, permits, necessary contracted services
and non-capital repairs, insurance, parts and supplies, management fees
and other administrative costs and mortgage interest. For the purposes
of this paragraph, mortgage interest shall be deemed to mean interest on
a bona fide mortgage including an allocable portion of charges related
thereto. Criteria to be considered in determining a bona fide mortgage
other than an institutional mortgage shall include; condition of the
property, location of the property, the existing mortgage market at the
time the mortgage is placed, the term of the mortgage, the amortization
rate, the principal amount of the mortgage, security and other terms and
conditions of the mortgage. The commissioner shall set a rental value
for any unit occupied by the owner or a person related to the owner or
unoccupied at the owner's choice for more than one month at the last
regulated rent plus the minimum number of guidelines increases or, if no
such regulated rent existed or is known, the commissioner shall impute a
rent consistent with other rents in the building. The amount of hardship
increase shall be such as may be required to maintain the annual gross
rent income as provided by this paragraph. The division shall not grant
a hardship application under this paragraph or paragraph six of this
subdivision for a period of three years subsequent to granting a hard-
ship application under the provisions of this paragraph. The collection
of any increase in the rent for any housing accommodation pursuant to
this paragraph shall not exceed six percent in any year from the effec-
tive date of the order granting the increase over the rent set forth in
the schedule of gross rents, with collectability of any dollar excess
above said sum to be spread forward in similar increments and added to
the rent as established or set in future years. No application shall be
approved unless the owner's equity in such building exceeds five percent
of: (i) the arms length purchase price of the property; (ii) the cost of
any capital improvements for which the owner has not collected a
surcharge; (iii) any repayment of principal of any mortgage or loan used
to finance the purchase of the property or any capital improvements for
which the owner has not collected a surcharge and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner. For
the purposes of this paragraph, owner's equity shall mean the sum of (i)
the purchase price of the property less the principal of any mortgage or
loan used to finance the purchase of the property, (ii) the cost of any
capital improvement for which the owner has not collected a surcharge
less the principal of any mortgage or loan used to finance said improve-
ment, (iii) any repayment of the principal of any mortgage or loan used
to finance the purchase of the property or any capital improvement for
which the owner has not collected a surcharge, and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner.
S 48. Paragraph 5 of subdivision d of section 6 of section 4 of chap-
ter 576 of the laws of 1974 enacting the emergency tenant protection act
of nineteen seventy-four, as amended by chapter 102 of the laws of 1984,
is amended to read as follows:
(5) as an alternative to the hardship application provided under para-
graph four of this subdivision, owners of buildings acquired by the same
owner or a related entity owned by the same principals [three] SIX years
prior to the date of application may apply to the division for increases
in excess of the level of applicable guideline increases established
under this law based on a finding by the commissioner that such guide-
line increases are not sufficient to enable the owner to maintain an
A. 7526 29
annual gross rent income for such building which exceeds the annual
operating expenses of such building by a sum equal to at least five
percent of such gross rent. For the purposes of this paragraph, operat-
ing expenses shall consist of the actual, reasonable, costs of fuel,
labor, utilities, taxes, other than income or corporate franchise taxes,
fees, permits, necessary contracted services and non-capital repairs,
insurance, parts and supplies, management fees and other administrative
costs and mortgage interest. For the purposes of this paragraph, mort-
gage interest shall be deemed to mean interest on a bona fide mortgage
including an allocable portion of charges related thereto. Criteria to
be considered in determining a bona fide mortgage other than an institu-
tional mortgage shall include; condition of the property, location of
the property, the existing mortgage market at the time the mortgage is
placed, the term of the mortgage, the amortization rate, the principal
amount of the mortgage, security and other terms and conditions of the
mortgage. The commissioner shall set a rental value for any unit occu-
pied by the owner or a person related to the owner or unoccupied at the
owner's choice for more than one month at the last regulated rent plus
the minimum number of guidelines increases or, if no such regulated rent
existed or is known, the commissioner shall impute a rent consistent
with other rents in the building. The amount of hardship increase shall
be such as may be required to maintain the annual gross rent income as
provided by this paragraph. The division shall not grant a hardship
application under this paragraph or paragraph four of this subdivision
for a period of three years subsequent to granting a hardship applica-
tion under the provisions of this paragraph. The collection of any
increase in the rent for any housing accommodation pursuant to this
paragraph shall not exceed six percent in any year from the effective
date of the order granting the increase over the rent set forth in the
schedule of gross rents, with collectability of any dollar excess above
said sum to be spread forward in similar increments and added to the
rent as established or set in future years. No application shall be
approved unless the owner's equity in such building exceeds five percent
of: (i) the arms length purchase price of the property; (ii) the cost of
any capital improvements for which the owner has not collected a
surcharge; (iii) any repayment of principal of any mortgage or loan used
to finance the purchase of the property or any capital improvements for
which the owner has not collected a surcharge; and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner. For
the purposes of this paragraph, owner's equity shall mean the sum of (i)
the purchase price of the property less the principal of any mortgage or
loan used to finance the purchase of the property, (ii) the cost of any
capital improvement for which the owner has not collected a surcharge
less the principal of any mortgage or loan used to finance said improve-
ment, (iii) any repayment of the principal of any mortgage or loan used
to finance the purchase of the property or any capital improvement for
which the owner has not collected a surcharge, and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner.
S 49. Section 5 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 d to read as follows:
D. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH THREE OR FIVE OF SUBDI-
VISION A OF THIS SECTION BUT SUBJECT TO ANY OTHER APPLICABLE EXCEPTIONS
IN SUCH SUBDIVISION, RENTAL HOUSING ACCOMMODATIONS LOCATED IN BUILDINGS
A. 7526 30
WHICH WERE OWNED BY A COMPANY ESTABLISHED UNDER ARTICLE 2 OF THE PRIVATE
HOUSING FINANCE LAW, OTHER THAN A MUTUAL COMPANY, THAT VOLUNTARILY
DISSOLVED PURSUANT TO SECTION 35 OF SUCH LAW SHALL BE FULLY SUBJECT TO
THE PROVISIONS OF THIS ACT. THE PROVISION OF SUBDIVISION A OF SECTION
NINE OF THIS ACT SHALL NOT APPLY TO ANY HOUSING ACCOMMODATION WHICH
BECAME SUBJECT TO THIS ACT PURSUANT TO THIS SUBDIVISION.
S 50. Paragraph 2 of subdivision a of section 26-516 of the adminis-
trative code of the city of New York is amended by adding two new
subparagraphs (iii) and (iv) to read as follows:
(III) FAILURE OF AN OWNER TO COMPLY WITH AN ORDER ISSUED UNDER THE
PROVISIONS OF THIS TITLE SHALL CONSTITUTE A CONTINUING VIOLATION TO BE
INCLUDED IN THE RENTAL HISTORY OF THE HOUSING ACCOMMODATION IRRESPECTIVE
OF WHETHER SUCH VIOLATION OCCURRED OUTSIDE OF THE FOUR YEAR PERIOD
PRECEDING THE FILING OF SUCH COMPLAINT AND PROVIDED FURTHER, THAT FAIL-
URE TO COMPLY WITH AN ORDER ISSUED UNDER THIS ARTICLE SHALL BE IMPUTED
TO ANY SUCCESSOR IN INTEREST OF THE HOUSING ACCOMMODATION, PROVIDED SUCH
PERSON OR PERSONS HAS ACTUAL NOTICE OF SUCH VIOLATION. (IV) ANY
COMPLAINT BASED ON FRAUD SHALL BE REVIEWED BY THE STATE DIVISION OF
HOUSING AND COMMUNITY RENEWAL IRRESPECTIVE OF WHETHER SUCH FRAUD
OCCURRED OUTSIDE OF THE FOUR YEAR PERIOD PRECEDING THE FILING OF SUCH
COMPLAINT.
S 51. Subdivision a of section 12 of section 4 of chapter 576 of the
laws of 1974 constituting the emergency tenant protection act of nine-
teen seventy-four is amended by adding two new paragraphs 9 and 10, to
read as follows:
(9) FAILURE OF AN OWNER TO COMPLY WITH AN ORDER ISSUED UNDER THE
PROVISIONS OF THIS TITLE SHALL CONSTITUTE A CONTINUING VIOLATION TO BE
INCLUDED IN THE RENTAL HISTORY OF THE HOUSING ACCOMMODATION IRRESPECTIVE
OF WHETHER SUCH VIOLATION OCCURRED OUTSIDE OF THE FOUR YEAR PERIOD
PRECEDING THE FILING OF SUCH COMPLAINT AND PROVIDED FURTHER, THAT FAIL-
URE TO COMPLY WITH AN ORDER ISSUED UNDER THIS ARTICLE SHALL BE IMPUTED
TO ANY SUCCESSOR IN INTEREST OF THE HOUSING ACCOMMODATION, PROVIDED SUCH
PERSON OR PERSONS HAS ACTUAL NOTICE OF SUCH VIOLATION.
(10) ANY COMPLAINT BASED ON FRAUD SHALL BE REVIEWED BY THE STATE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL IRRESPECTIVE OF WHETHER SUCH FRAUD
OCCURRED OUTSIDE OF THE FOUR YEAR PERIOD PRECEDING THE FILING OF SUCH
COMPLAINT.
S 52. Subdivision a of section 26-516 of the administrative code of
the city of New York is amended by adding a new clause (iii) to read as
follows:
(III) NOTWITHSTANDING THE PROVISIONS OF CLAUSE (I) OF THIS PARAGRAPH,
FOR ANY YEAR IN WHICH AN OWNER OR A LANDLORD WHO IS REQUIRED TO FILE AN
ANNUAL RENT REGISTRATION STATEMENT, HAS FAILED TO TIMELY FILE SUCH ANNU-
AL RENT REGISTRATION STATEMENT, THE DIVISION OR A COURT OF COMPETENT
JURISDICTION SHALL CONSIDER SUCH YEAR OR YEARS WHEN DETERMINING THE
CURRENT LEGAL REGULATED RENT.
S 53. 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. UPON THE OFFERING OF A LEASE TO A PROSPECTIVE TENANT, AN OWNER OR A
LANDLORD SHALL BE REQUIRED TO PROVIDE SUCH TENANT WITH THE DOCUMENTA-
TION, THE SCOPE OF WHICH SHALL BE DETERMINED BY THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL, USED BY SUCH OWNER OR LANDLORD TO SUPPORT ANY
ALLOWABLE INCREASES IN THE LEGAL REGULATED RENT DURING THE PREVIOUS FOUR
YEARS.
S 54. Paragraph 1 of subdivision a of section 12 of section 4 of chap-
ter 576 of the laws of 1974 constituting the emergency tenant protection
A. 7526 31
act of nineteen seventy-four is amended by adding a new clause (iii) to
read as follows:
(III) NOTWITHSTANDING THE PROVISIONS OF CLAUSE (I) OF THIS PARAGRAPH,
FOR ANY YEAR IN WHICH AN OWNER OR A LANDLORD WHO IS REQUIRED TO FILE AN
ANNUAL RENT REGISTRATION STATEMENT, HAS FAILED TO TIMELY FILE SUCH ANNU-
AL RENT REGISTRATION STATEMENT, THE DIVISION OR A COURT OF COMPETENT
JURISDICTION SHALL CONSIDER SUCH YEAR OR YEARS WHEN DETERMINING THE
CURRENT LEGAL REGULATED RENT.
S 55. 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. UPON THE OFFERING OF A LEASE TO A PROSPECTIVE TENANT, AN OWNER OR A
LANDLORD SHALL BE REQUIRED TO PROVIDE SUCH TENANT WITH THE DOCUMENTA-
TION, THE SCOPE OF WHICH SHALL BE DETERMINED BY THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL, USED BY SUCH OWNER OR LANDLORD TO SUPPORT ANY
ALLOWABLE INCREASES IN THE LEGAL REGULATED RENT DURING THE PREVIOUS FOUR
YEARS.
S 56. Section 213-a of the civil practice law and rules, as amended by
chapter 116 of the laws of 1997, is amended to read as follows:
S 213-a. Actions to be commenced within four years; residential rent
overcharge. An action on a residential rent overcharge shall be
commenced within four years of the first overcharge alleged and no
determination of an overcharge and no award or calculation of an award
of the amount of any overcharge may be based upon an overcharge having
occurred more than four years before the action is commenced. This
section shall preclude examination of the rental history of the housing
accommodation prior to the four-year period immediately preceding the
commencement of the action; PROVIDED HOWEVER, FOR ANY YEAR IN WHICH AN
OWNER OR A LANDLORD WHO IS REQUIRED TO FILE AN ANNUAL RENT REGISTRATION
STATEMENT, HAS FAILED TO TIMELY FILE SUCH ANNUAL RENT REGISTRATION
STATEMENT, A COURT OF COMPETENT JURISDICTION SHALL CONSIDER SUCH YEAR OR
YEARS WHEN DETERMINING THE CURRENT LEGAL REGULATED RENT.
S 57. Section 241.05 of the penal law, as added by chapter 116 of the
laws of 1997, is amended to read as follows:
S 241.05 Harassment of a rent regulated tenant IN THE FIRST DEGREE.
An owner is guilty of harassment of a rent regulated tenant IN THE
FIRST DEGREE when with intent to cause a rent regulated tenant to vacate
a housing accommodation, such owner:
1. With intent to cause physical injury to such tenant, causes such
injury to such tenant or to a third person; or
2. Recklessly causes physical injury to such tenant or to a third
person.
Harassment of a rent regulated tenant IN THE FIRST DEGREE is a class E
felony.
S 58. The penal law is amended by adding a new section 241.03 to read
as follows:
S 241.03 HARASSMENT OF A RENT REGULATED TENANT IN THE SECOND DEGREE.
AN OWNER IS GUILTY OF HARASSMENT OF A RENT REGULATED TENANT IN THE
SECOND DEGREE WHEN, WITH THE INTENT TO CAUSE A RENT REGULATED TENANT TO
VACATE A HOUSING ACCOMMODATION, SUCH OWNER INTENTIONALLY IMPAIRS THE
HABITABILITY OF A HOUSING ACCOMMODATION, OR CREATES OR MAINTAINS A
CONDITION, WHICH ENDANGERS THE SAFETY OR HEALTH OF THE DWELLING'S
TENANT.
HARASSMENT OF A RENT REGULATED TENANT IN THE SECOND DEGREE IS A CLASS
A MISDEMEANOR.
A. 7526 32
S 59. Paragraph 5 of subdivision a of section 26-405 of the adminis-
trative 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 AN
INCREASE FROM A TENANT IN OCCUPANCY IN ANY ONE YEAR PERIOD OF more than
THE LESSER OF EITHER seven and one-half percentum [increase from a
tenant in occupancy on such date in any one year period, provided howev-
er, that where] OR AN AVERAGE OF THE PREVIOUS FIVE YEARS OF ONE-YEAR
RENT INCREASES ON RENT STABILIZED APARTMENTS AS ESTABLISHED BY THE RENT
GUIDELINES BOARD, PURSUANT TO SUBDIVISION B OF SECTION 26-510 OF THIS
TITLE. IF 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 THE LESSER OF EITHER
seven and one-half percentum OR AN AVERAGE OF THE PREVIOUS FIVE YEARS OF
ONE-YEAR RENT INCREASES ON RENT STABILIZED APARTMENTS AS ESTABLISHED BY
THE RENT GUIDELINES BOARD, PURSUANT TO SUBDIVISION B OF SECTION 26-510
OF THIS TITLE, over the previous rent [and]. ANY additional annual rents
shall not exceed THE LESSER OF EITHER seven and one-half percentum OR AN
AVERAGE OF THE PREVIOUS FIVE YEARS OF ONE-YEAR RENT INCREASES ON RENT
STABILIZED APARTMENTS AS ESTABLISHED BY THE RENT GUIDELINES BOARD,
PURSUANT TO SUBDIVISION B OF SECTION 26-510 OF THIS TITLE, of the rent
paid during the previous year. Notwithstanding any of the foregoing
limitations in this paragraph five, maximum rent shall be 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 paragraph 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, nine-
teen hundred seventy-two, or becomes vacant thereafter by voluntary
surrender of possession by the tenants, the maximum rent established for
such accommodations may be collected.
S 60. Subparagraphs (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 61. 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. NO ANNUAL RENT INCREASE AUTHORIZED PURSUANT TO THIS ACT SHALL
EXCEED THE AVERAGE OF THE PREVIOUS FIVE ANNUAL RENTAL INCREASES AUTHOR-
IZED BY A RENT GUIDELINES BOARD FOR A RENT STABILIZED UNIT PURSUANT TO
SECTION 4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN
SEVENTY-FOUR.
S 62. Section 235-e of the real property law, as amended by chapter
848 of the laws of 1986, is amended to read as follows:
S 235-e. Duty [of landlord] to provide A written receipt. (a) Upon the
receipt of THE PAYMENT OF rent for residential premises in the form of
cash, or any instrument other than the personal check of the [tenant]
LESSEE, it shall be the duty of the [landlord] LESSOR, OR ANY AGENT OF
THE LESSOR AUTHORIZED TO RECEIVE RENT, to provide the [payor] LESSEE
with a written receipt containing the following:
1. The date;
2. The amount;
A. 7526 33
3. The identity of the premises and period for which paid; and
4. The signature and title of the person receiving the rent.
(b) [Where a tenant] A LESSEE MAY REQUEST, in writing, [requests] that
a [landlord] LESSOR provide a receipt for rent paid by personal check[,
it shall be the duty of]. IF SUCH REQUEST IS MADE, the [landlord to]
LESSOR, OR ANY AGENT OF THE LESSOR AUTHORIZED TO RECEIVE RENT, SHALL
provide the [payor] LESSEE with the receipt described in subdivision (a)
of this section [for each such request made in writing]. SUCH REQUEST
SHALL, UNLESS OTHERWISE SPECIFIED BY THE LESSEE, REMAIN IN EFFECT FOR
THE DURATION OF SUCH LESSEE'S TENANCY.
(C) IF A PAYMENT OF RENT IS PERSONALLY TRANSMITTED TO A LESSOR, OR AN
AGENT OF A LESSOR AUTHORIZED TO RECEIVE RENT, THE RECEIPT FOR SUCH
PAYMENT SHALL BE ISSUED IMMEDIATELY TO A LESSEE. IF A PAYMENT OF RENT IS
TRANSMITTED INDIRECTLY TO A LESSOR, OR AN AGENT OF A LESSOR AUTHORIZED
TO RECEIVE RENT, A LESSEE SHALL BE PROVIDED WITH A RECEIPT WITHIN TEN
BUSINESS DAYS OF SUCH LESSOR OR AGENT'S RECEIPT OF A RENT PAYMENT.
(D) IF A LESSOR, OR AN AGENT OF A LESSOR AUTHORIZED TO RECEIVE RENT,
FAILS TO RECEIVE PAYMENT FOR RENT WITHIN TEN BUSINESS DAYS OF THE DATE
SPECIFIED IN A LEASE AGREEMENT, SUCH LESSOR OR AGENT SHALL SEND, BY
CERTIFIED MAIL, WITHIN TWO BUSINESS DAYS THEREAFTER, A LESSEE A WRITTEN
NOTICE STATING THE FAILURE TO RECEIVE SUCH RENT PAYMENT. THE FAILURE OF
A LESSOR, OR ANY AGENT OF THE LESSOR AUTHORIZED TO RECEIVE RENT, TO
PROVIDE A LESSEE WITH A WRITTEN NOTICE OF THE NON-PAYMENT OF RENT MAY BE
USED AS AN AFFIRMATIVE DEFENSE BY SUCH LESSEE IN AN EVICTION PROCEEDING
BASED ON THE NON-PAYMENT OF RENT.
S 63. Section 282-a of the multiple dwelling law, as amended by chap-
ter 159 of the laws of 2011, is amended to read as follows:
S 282-a. [Limitation on applications] APPLICATIONS for coverage of
interim multiple dwellings and residential units. [1. All applications
for registration as an interim multiple dwelling or for coverage of
residential units under this article shall be filed with the loft board
within six months after the date the loft board shall have adopted all
rules or regulations necessary in order to implement the provisions of
chapter one hundred forty-seven of the laws of two thousand ten. The
loft board may subsequently amend such rules and regulations but such
amendments shall not recommence the time period in which applications
may be filed. Notwithstanding any other provision of this article,
after such date no further applications for registration or coverage as
an interim multiple dwelling or for coverage under this article shall be
accepted for owners or occupants of buildings that would otherwise qual-
ify as interim multiple dwellings or for coverage pursuant to this arti-
cle.
2.] Where any occupant has filed an application for coverage pursuant
to this article and has received a docket number from the loft board, it
shall be unlawful for an owner to cause or intend to cause such occupant
to vacate, surrender or waive any rights in relation to such occupancy,
due to repeated interruptions or discontinuances of essential services,
or an interruption or discontinuance of an essential service for an
extended duration or of such significance as to substantially impair
habitability of such unit, at any time before the loft board has made a
final determination, including appeals, to approve or deny such applica-
tion. This [subdivision] SECTION shall not grant any rights of continued
occupancy other than those otherwise granted by law. Any agreement that
waives or limits the benefits of this [subdivision] SECTION shall be
deemed void as against public policy. In addition to any other remedies
provided in this article for failure to be in compliance, in article
A. 7526 34
eight of this chapter, or in the regulations promulgated by the loft
board, an occupant who has filed an application with the loft board for
coverage under this article may[, no later than thirty-six months after
the loft board shall have adopted rules and regulations as set forth in
subdivision one of this section,] commence an action or proceeding in a
court of competent jurisdiction, which notwithstanding any other
provision of law shall include the housing part of the New York city
civil court, to enforce the provisions of this [subdivision] SECTION.
S 64. Paragraph (vi) of subdivision 1 of section 284 of the multiple
dwelling law, as amended by chapter 4 of the laws of 2013, is amended to
read as follows:
(vi) Notwithstanding the provisions of paragraphs (i) through (v) of
this subdivision the owner of an interim multiple dwelling made subject
to this article by subdivision five of section two hundred eighty-one of
this article (A) shall file an alteration application [within nine
months from the effective date of the chapter of the laws of two thou-
sand ten which amended this subparagraph] ON OR BEFORE MARCH
TWENTY-FIRST, TWO THOUSAND ELEVEN, or, for units that became subject to
this article pursuant to the chapter of the laws of two thousand thir-
teen which amended this paragraph, [within nine months of the promulga-
tion of all necessary rules and regulations pursuant to section two
hundred eighty-two-a of this article]ON OR BEFORE JUNE ELEVENTH, TWO
THOUSAND FOURTEEN, OR, FOR UNITS IN AN INTERIM MULTIPLE DWELLING THAT
WERE LISTED ON AN APPLICATION FOR COVERAGE OR REGISTRATION FILED WITH
THE LOFT BOARD PURSUANT TO THIS ARTICLE OR IN A COURT PLEADING AFTER
MARCH ELEVENTH, TWO THOUSAND FOURTEEN, WITHIN NINE MONTHS OF EITHER THE
DATE OF THE INITIAL APPLICATION FOR COVERAGE OR THE DATE OF THE LOFT
BOARD'S ISSUANCE OF AN INTERIM MULTIPLE DWELLING NUMBER OR THE DATE OF
THE SERVICE OF THE PLEADING, WHICHEVER IS EARLIER, and (B) shall take
all reasonable and necessary action to obtain an approved alteration
permit [within twelve months from such effective date] ON OR BEFORE JUNE
TWENTY-FIRST, TWO THOUSAND ELEVEN, or, for units that became subject to
this article pursuant to the chapter of the laws of two thousand thir-
teen which amended this paragraph, [within twelve months of the promul-
gation of all necessary rules and regulations pursuant to section two
hundred eighty-two-a of this article] ON OR BEFORE SEPTEMBER ELEVENTH,
TWO THOUSAND FOURTEEN, OR, FOR UNITS IN AN INTERIM MULTIPLE DWELLING
THAT WERE LISTED ON AN APPLICATION FOR COVERAGE OR REGISTRATION FILED
WITH THE LOFT BOARD PURSUANT TO THIS ARTICLE OR IN A COURT PLEADING
AFTER MARCH ELEVENTH, TWO THOUSAND FOURTEEN, WITHIN TWELVE MONTHS OF
EITHER THE DATE OF THE INITIAL APPLICATION FOR COVERAGE OR THE DATE OF
THE LOFT BOARD'S ISSUANCE OF AN INTERIM MULTIPLE DWELLING NUMBER OR THE
DATE OF THE SERVICE OF THE PLEADING, WHICHEVER IS EARLIER, and (C) shall
achieve compliance with the standards of safety and fire protection set
forth in article seven-B of this chapter for the residential portions of
the building within eighteen months from obtaining such alteration
permit, and (D) shall take all reasonable and necessary action to obtain
a certificate of occupancy as a class A multiple dwelling for the resi-
dential portions of the building or structure [within thirty months from
such effective date] ON OR BEFORE DECEMBER TWENTY-FIRST, TWO THOUSAND
TWELVE, or for units that became subject to this article pursuant to the
chapter of the laws of two thousand thirteen which amended this para-
graph [within thirty months of the promulgation of all necessary rules
and regulations pursuant to section two hundred eighty-two-a of this
article] ON OR BEFORE MARCH ELEVENTH, TWO THOUSAND SIXTEEN, OR, FOR
UNITS IN AN INTERIM MULTIPLE DWELLING THAT WERE LISTED ON AN APPLICATION
A. 7526 35
FOR COVERAGE OR REGISTRATION FILED WITH THE LOFT BOARD PURSUANT TO THIS
ARTICLE OR IN A COURT PLEADING AFTER MARCH ELEVENTH, TWO THOUSAND FOUR-
TEEN, WITHIN THIRTY MONTHS OF EITHER THE DATE OF THE INITIAL APPLICATION
FOR COVERAGE OR THE DATE OF THE LOFT BOARD'S ISSUANCE OF AN INTERIM
MULTIPLE DWELLING NUMBER OR THE DATE OF THE SERVICE OF THE PLEADING,
WHICHEVER IS EARLIER. The loft board may, upon good cause shown, and
upon proof of compliance with the standards of safety and fire
protection set forth in article seven-B of this chapter, twice extend
the time of compliance with the requirement to obtain a residential
certificate of occupancy for periods not to exceed twelve months each.
S 65. Subdivision (h) of section 27 of chapter 4 of the laws of 2013
amending the real property tax law relating to exemption from taxation
to alterations and improvements to multiple dwellings to eliminate fire
and health hazards is REPEALED.
S 66. The civil practice law and rules is amended by adding a new
section 3012-c to read as follows:
S 3012-C. PREREQUISITES; CERTIFICATE OF MERIT IN AN EVICTION PROCEED-
ING OR AN ACTION TO DEREGULATE A RENT-REGULATED UNIT. (A) IN ANY
EVICTION PROCEEDING PREMISED UPON ANY GROUND ESTABLISHED BY ARTICLE
SEVEN OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW; OR, IN ANY
ACTION TO DEREGULATE A UNIT THAT IS REGULATED PURSUANT TO THE EMERGENCY
HOUSING RENT CONTROL LAW OF NINETEEN HUNDRED FORTY-SIX, THE LOCAL EMER-
GENCY HOUSING RENT CONTROL ACT OF NINETEEN HUNDRED SIXTY-TWO, THE EMER-
GENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, OR THE ADMINISTRA-
TIVE CODE OF THE CITY OF NEW YORK, THE COMPLAINT SHALL BE ACCOMPANIED BY
A CERTIFICATE OF MERIT. SUCH CERTIFICATE SHALL BE SIGNED BY AN ATTORNEY
FOR THE PLAINTIFF, OR, WHERE THE PLAINTIFF IS NOT REPRESENTED BY COUN-
SEL, BY THE PLAINTIFF, AND SHALL CERTIFY THAT SUCH ATTORNEY OR PLAINTIFF
HAS:
1. REVIEWED THE FACTS UNDERLYING THE PROCEEDING OR ACTION BROUGHT;
2. CONSULTED WITH THE PLAINTIFF, OR A REPRESENTATIVE OF THE PLAINTIFF,
CONCERNING THE PROCEEDING OR ACTION BROUGHT;
3. REVIEWED DOCUMENTS PERTINENT TO THE PROCEEDING OR ACTION BROUGHT,
INCLUDING, WHERE APPLICABLE, THE ANNUAL RENT REGISTRATION STATEMENT;
4. REVIEWED PLAINTIFF'S, OR A REPRESENTATIVE OF THE PLAINTIFF'S,
ATTEMPTS TO, BASED UPON AN IMPLIED OR EXPRESSED COVENANT OF FAIR DEALING
IN GOOD FAITH WITH THE TENANT, CORRESPOND, NEGOTIATE, OR RESOLVE LEASE
OR TENANCY ISSUES, AND/OR ACCEPT PAYMENT UNDER THE TERMS OF A LEASE; AND
5. DETERMINED THAT, TO THE BEST OF SUCH ATTORNEY'S OR PLAINTIFF'S
KNOWLEDGE, BASED UPON REASONABLE INQUIRIES MADE IN DUE DILIGENCE, THERE
IS A REASONABLE BASIS FOR THE COMMENCEMENT OF THE ACTION, AND THAT THE
PLAINTIFF IS ENTITLED TO BRING THE PROCEEDING OR ACTION.
(B) A COPY OF THE WRITTEN LEASE BETWEEN THE PLAINTIFF AND DEFENDANT;
IF AN ORAL LEASE, DOCUMENTATION ESTABLISHING DEFENDANT'S TENANCY; WHERE
APPLICABLE, THE ANNUAL RENT REGISTRATION STATEMENT; AND/OR ANY OTHER
DOCUMENTATION SUPPORTING THE ACTION SHALL BE ATTACHED TO THE CERTIFICATE
OF MERIT.
(C) IF A PLAINTIFF WILLFULLY FAILS TO PROVIDE A COPY OF THE WRITTEN
LEASE BETWEEN THE PLAINTIFF AND DEFENDANT; IF AN ORAL LEASE, DOCUMENTA-
TION ESTABLISHING DEFENDANT'S TENANCY; WHERE APPLICABLE, THE ANNUAL RENT
REGISTRATION STATEMENT; AND/OR ANY OTHER DOCUMENTATION SUPPORTING THE
ACTION, AS REQUIRED BY SUBDIVISION (B) OF THIS SECTION, AND THE COURT
FINDS, UPON THE MOTION OF ANY PARTY OR ON ITS OWN MOTION ON NOTICE TO
THE PARTIES, THAT SUCH PAPERS AND/OR DOCUMENTS WERE NOT PROVIDED, THE
COURT SHALL DISMISS THE COMPLAINT OR MAKE SUCH FINAL OR CONDITIONAL
A. 7526 36
ORDER WITH REGARD TO SUCH FAILURE, AS IS JUST. ANY SUCH DISMISSAL SHALL
BE WITHOUT PREJUDICE AND SHALL NOT BE ON THE MERITS.
S 67. This act shall take effect immediately; provided, however, that:
(a) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections eight, nine, ten, twenty, twen-
ty-five, twenty-seven, thirty, thirty-two, thirty-six, thirty-seven,
forty-three, forty-four, forty-seven, fifty, fifty-two, and fifty-three
of this act shall expire on the same date as such chapter expires and
shall not affect the expiration of such chapter as provided under
section 26-520 of such law;
(b) the amendments to the emergency tenant protection act of nineteen
seventy-four made by sections seven, thirteen, fourteen, twenty-one,
twenty-two, twenty-eight, thirty-one, thirty-three, thirty-eight,
forty-five, forty-six, forty-eight, forty-nine, fifty-one, fifty-four,
and fifty-five 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;
(c) the amendments to the emergency housing rent control law made by
sections twenty-three, twenty-nine, thirty-nine and sixty-one 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;
(d) the amendments to chapter 3 of title 26 of the administrative code
of the city of New York made by sections eleven, twelve, twenty-four,
twenty-six, thirty-four, thirty-five, forty-one, forty-two and fifty-
nine 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;
(e) the amendments to paragraph 2 of subdivision c of section 26-516
of the administrative code of the city of New York made by section nine
of this act shall be subject to the expiration and reversion of such
subdivision pursuant to section 46 of chapter 116 of the laws of 1997,
as amended, when upon such date the provisions of section ten of this
act shall take effect;
(f) the amendment to subparagraph (a) of paragraph 2 of subdivision b
of section 26-413 of the administrative code of the city of New York
made by section eleven of this act shall be subject to the expiration
and reversion of such subdivision pursuant to section 46 of chapter 116
of the laws of 1997, as amended, when upon such date the provisions of
section twelve of this act shall take effect;
(g) the amendment to clause (ii) of paragraph 3 of subdivision a of
section 12 of the emergency tenant protection act of nineteen seventy-
four, made by section thirteen of this act shall be subject to the expi-
ration and reversion of such subdivision pursuant to section 46 of chap-
ter 116 of the laws of 1997, as amended, when upon such date the
provisions of section fourteen of this act shall take effect;
(h) the provisions of sections fifty-seven and fifty-eight of this act
shall not affect the expiration and repeal of article 241 of the penal
law pursuant to subdivision 6 of section 46 of chapter 116 of the laws
of 1997, as amended, and shall expire and be deemed repealed therewith;
(i) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York, made by section thirty-two of this act and the
emergency tenant protection act of nineteen seventy-four made by section
thirty-three of this act and affecting class A multiple dwellings
covered by a project-based assistance contract pursuant to section eight
A. 7526 37
of the United States housing act of 1937, shall apply only to such class
A multiple dwellings whose contract is no longer in effect after the
date upon which this act shall take effect;
(j) the amendment to section 5 of the emergency tenant protection act
of nineteen seventy-four made by section forty-nine of this act and
affecting rental housing accommodations located in buildings which were
owned by a company established under article 2 of the private housing
finance law, other than a mutual company, that voluntarily dissolve
pursuant to section 35 of such law, shall apply only to such rental
housing accommodations after the date upon which this act shall take
effect;
(k) notwithstanding section 13 of part A of chapter 97 of the laws of
2011, the effectiveness of such part shall not be contingent upon the
continuance of subdivision 3 of section 1 of the local emergency rent
control act, sections 26-501, 26-502 and 26-520 of the administrative
code of the city of New York, section 17 of chapter 576 of the laws of
1974 and subdivision 2 of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, and section 10 of
chapter 555 of the laws of 1982, amending the general business law and
the administrative code of the city of New York relating to conversions
of residential property to cooperative or condominium ownership in the
city of New York as such laws are continued by chapter 93 of the laws of
2011; and
(l) the provisions of sections sixty-three, sixty-four and sixty-five
of this act shall be deemed to have been in full force and effect on and
after March 11, 2014.