Senate Bill S3364B

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3364

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 5, 2015
                               ___________

Introduced by Sens. ESPAILLAT, ADDABBO, AVELLA, BRESLIN, DIAZ, GIANARIS,
  HASSELL-THOMPSON,   HOYLMAN,  KRUEGER,  MONTGOMERY,  PARKER,  PERALTA,
  PERKINS, SAMPSON, SAVINO, SERRANO, SQUADRON, STAVISKY, STEWART-COUSINS
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Housing, Construction and Community Development

AN ACT to amend the administrative code of the city  of  New  York,  the
  emergency tenant protection act of nineteen seventy-four and the emer-
  gency  housing  rent  control  law, in relation to recovery of certain
  housing accommodations by a landlord (Part A); to amend  the  adminis-
  trative  code  of  the  city  of  New  York  and  the emergency tenant
  protection act of nineteen seventy-four, in relation to limiting  rent
  increase  after  vacancy of a housing accommodation (Part B); to amend
  the administrative code of the city of  New  York  and  the  emergency
  tenant  protection  act   of nineteen seventy-four, in relation to the
  declaration of emergencies for certain rental  housing  accommodations
  (Part  C);  to  amend the local emergency housing rent control act, in
  relation to rent regulation laws (Part D); to amend 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, the
  emergency housing rent control law, chapter 329 of the  laws  of  1963
  amending  the emergency housing rent control law relating to recontrol
  of rents in Albany, chapter 555 of  the  laws  of  1982  amending  the
  general  business  law  and the administrative code of the city of New
  York relating to conversion of residential property to cooperative  or
  condominium ownership in the city of New York, 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  and  the  rent regulation reform act of 1997, in relation to
  extending the effectiveness thereof (Part E); to amend the administra-
  tive code of the city of New York, the emergency tenant protection act
  of nineteen seventy-four, and the emergency housing rent control  law,
  in  relation  to  adjustment  of  maximum  allowable rent (Part F); to
  repeal paragraph 13 of subdivision a of section  5  of  section  4  of

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

                                                           LBD08859-01-5

S. 3364                             2

  chapter  576  of  the  laws  of 1974 constituting the emergency tenant
  protection act of nineteen seventy-four, paragraph (n) of  subdivision
  2  of  section  2 of chapter 274 of the laws of 1946, constituting the
  emergency  housing rent control law, and section 26-504.2 and subpara-
  graph (k) of paragraph 2 of subdivision e of  section  26-403  of  the
  administrative  code  of  the  city  of  New York, relating to vacancy
  decontrol (Part G); to amend the emergency tenant  protection  act  of
  nineteen  seventy-four  and the administrative code of the city of New
  York, in relation to the regulation of rents (Part H);  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 (Part I); 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 extending
  the length of time over which major capital improvement  expenses  may
  be recovered (Part J); to amend the emergency tenant protection act of
  nineteen seventy-four, in relation to the declaration of housing emer-
  gencies  for  rental housing accommodations located in buildings owned
  by certain limited-profit housing companies (Part K); and to amend the
  emergency tenant protection act of nineteen seventy-four, the emergen-
  cy housing rent control law and the administrative code of the city of
  New York, in relation to deregulation thresholds (Part L)

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

  Section  1.  This  act enacts into law major components of legislation
related to rent regulations in the state of New York. Each component  is
wholly  contained  within  a  Part  identified as Parts A through L. The
effective date for each particular provision contained within such  Part
is  set  forth  in  the  last section of such Part. Any provision in any
section contained within a Part, including the  effective  date  of  the
Part,  which  makes  reference  to a section "of this act", when used in
connection with that particular component, shall be deemed to  mean  and
refer  to  the  corresponding  section of the Part in which it is found.
Section three of this act sets forth the general effective date of  this
act.

                                 PART A

  Section  1.  Paragraph  1  of  subdivision  b of section 26-408 of the
administrative 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-
dation in that building for twenty 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

S. 3364                             3

laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in  any  substantial  gainful
employment; or
  S  2.  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 TWENTY 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 3. 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-
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

S. 3364                             4

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 years or more, or has an impairment which  results  from  anatom-
ical, 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 4. 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 years or more, or  has
an impairment which results from anatomical, physiological or psycholog-
ical  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 substan-
tial gainful employment; or
  S 5. This act shall take effect immediately and  shall  apply  to  any
tenant in possession at or after the time it takes effect, regardless of
whether  the  landlord's  application  for  an order, refusal to renew a
lease or refusal to extend or renew a tenancy took place before this act
shall have taken effect, provided that:
  a. the amendments to section 26-408 of the  city  rent  and  rehabili-
tation  law  made  by section one of this act shall remain in full force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing  rent  control
act;
  b.  the amendments to section 26-511 of the rent stabilization  law of
nineteen hundred sixty-nine made by section two of this act shall expire
on the same date as such law expires and shall not affect the expiration
of such law as provided under section 26-520 of such law;
  c. the amendments to subdivision a of section 10 of section 4  of  the
emergency tenant protection act of nineteen seventy-four made by section

S. 3364                             5

three  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; and
  d.  the  amendments  to paragraph (a) of subdivision 2 of section 5 of
the emergency housing rent control law made by section four of this  act
shall  expire  on the same date as such law expires and shall not affect
the expiration of such law as provided in subdivision 2 of section 1  of
chapter 274 of the laws of 1946.

                                 PART B

  Section  1.  Paragraph  5-a  of subdivision c of section 26-511 of the
administrative 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] TEN 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] TEN percent of  the  previous  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  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  product  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  accommo-
dation  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 ther-
eof, 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,  notwith-
standing the number of vacancy leases entered into in such year.
  S  2.  Subdivision  (a-1) of section 10 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant  protection  act  of

S. 3364                             6

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] TEN 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] TEN percent of the previous 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  county 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 resulting from multiplying such previous
legal regulated rent by six-tenths of one percent and further  multiply-
ing  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
act, the number of  years  that  such  housing  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 thereof, but  shall
be  in  addition  to any other increases authorized pursuant to this act
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
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 3. This act shall take effect immediately; provided that
  a.  the  amendments to section 26-511 of the rent stabilization law of
nineteen hundred sixty-nine made by section 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 under section 26-520 of such law; and
  b. the amendments to section 4 of the emergency tenant protection  act
of nineteen seventy-four made by section two 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.

                                 PART C

S. 3364                             7

  Section  1. 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)
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 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 HOUSING  ACT  OF
1937  WHICH  CONTRACT  IS  NO  LONGER  IN  EFFECT,  NOTWITHSTANDING  THE
PROVISIONS OF SUBPARAGRAPH (D) OR (G) OF PARAGRAPH ONE OF THIS  SUBDIVI-
SION  OR PARAGRAPH FIVE OF SUBDIVISION A OF SECTION FIVE OF SECTION FOUR

S. 3364                             8

OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR PROVIDED
HOWEVER, THAT ANY DWELLING UNIT WHICH BECOMES SUBJECT TO THIS LAW PURSU-
ANT TO THIS PARAGRAPH SHALL NOT BE SUBJECT TO THE PROVISIONS OF SUBDIVI-
SION A OF SECTION 26-513 OF THIS CHAPTER; and
  S 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti-
tuting  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 SECTION FOUR 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 SECTION FOUR OF THIS ACT.
  S  3.  This  act  shall take effect immediately and shall apply to all
buildings which are covered  by  a  project  based  assistance  contract
pursuant to section eight of the United States housing act of 1937 which
contract  ceased to be effective on or after such date; provided, howev-
er, that
  a. the amendment to subdivision a of section 26-504 of the administra-
tive code of the city of New York made by section one of this act  shall
not  affect the expiration of such section pursuant to section 26-520 of
such code and shall expire therewith; and
  b. the amendment to section 5 of the emergency tenant  protection  act
of  nineteen  seventy-four  made  by  section  two of this act shall not
affect the expiration of such act as provided in section 17  of  chapter
576 of the laws of 1974, as amended, and shall expire therewith.

                                 PART D

  Section  1.  Subdivision  5  of section 1 of chapter 21 of the laws of
1962, constituting the local emergency  housing  rent  control  act,  as
amended  by  chapter 82 of the laws of 2003 and the closing paragraph as
amended by chapter 422 of the laws  of  2010,  is  amended  to  read  as
follows:
  5.  Authority  for local rent control legislation.  Each city having a
population of one million or more, acting through its local  legislative
body,  may  adopt  and  amend local laws or ordinances in respect of the
establishment or designation of a city  housing  rent  agency.  When  it
deems such action to be desirable or necessitated by local conditions in
order  to  carry  out the purposes of this section, such city, except as
hereinafter provided, acting through its local legislative body and  not
otherwise,  may  adopt  and amend local laws or ordinances in respect of
the regulation and control  of  residential  rents,  including  but  not
limited  to  provision  for  the establishment and adjustment of maximum
rents, the classification of housing accommodations, the  regulation  of
evictions,  and  the  enforcement  of such local laws or ordinances. The
validity of any such local laws or ordinances, and the  rules  or  regu-
lations  promulgated  in  accordance therewith, shall not be affected by
and need not be consistent with the state emergency housing rent control
law or with rules and regulations of the state division of  housing  and
community renewal.

S. 3364                             9

  Notwithstanding  any  local  law  or ordinance, housing accommodations
which became vacant on or after July first, nineteen hundred seventy-one
or which hereafter become vacant shall be subject to the  provisions  of
the  emergency tenant protection act of nineteen seventy-four, provided,
however,  that  this  provision shall not apply or become effective with
respect to housing accommodations which, by local law or ordinance,  are
made  directly  subject to regulation and control by a city housing rent
agency and such agency determines or finds  that  the  housing  accommo-
dations  became  vacant because the landlord or any person acting on his
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  interfered  with  or  disturbed  or  was
intended  to  interfere  with  or  disturb the comfort, repose, peace or
quiet of the tenant in his use or  occupancy  of  the  housing  accommo-
dations.  The  removal  of any housing accommodation from regulation and
control of rents pursuant to the vacancy exemption provided for in  this
paragraph shall not constitute or operate as a ground for the subjection
to more stringent regulation and control of any housing accommodation in
such  property  or  in  any  other  property owned by the same landlord,
notwithstanding any prior agreement to the contrary by the landlord. The
vacancy exemption provided for in this paragraph shall  not  arise  with
respect  to  any  rented plot or parcel of land otherwise subject to the
provisions of this act, by reason of a transfer of title and  possession
occurring  on  or  after  July  first, nineteen hundred seventy-one of a
dwelling located on such plot or parcel and owned by  the  tenant  where
such  transfer  of  title  and  possession  is  made  to a member of the
tenant's immediate family provided that the member of the tenant's imme-
diate family occupies the dwelling with the tenant prior to the transfer
of title and possession for a continuous period of two years.
  The term "immediate family" shall include a husband, wife, son, daugh-
ter, stepson, stepdaughter, father, mother, father-in-law or  mother-in-
law.
  [Notwithstanding  the foregoing, no local law or ordinance shall here-
after provide for the regulation and control of  residential  rents  and
eviction in respect of any housing accommodations which are (1) present-
ly exempt from such regulation and control or (2) hereafter decontrolled
either by operation of law or by a city housing rent agency, by order or
otherwise. No housing accommodations presently subject to regulation and
control  pursuant  to  local laws or ordinances adopted or amended under
authority of this subdivision shall hereafter be by local law  or  ordi-
nance  or  by rule or regulation which has not been theretofore approved
by the state commissioner of housing and community renewal subjected  to
more  stringent or restrictive provisions of regulation and control than
those presently in effect.
  Notwithstanding any other provision of law, on and after the effective
date of this paragraph, a city having a population  of  one  million  or
more  shall not, either through its local legislative body or otherwise,
adopt or amend local laws or ordinances with respect to  the  regulation
and control of residential rents and eviction, including but not limited
to  provision for the establishment and adjustment of rents, the classi-
fication of housing accommodations, the regulation of evictions, and the
enforcement of such local laws or ordinances, or otherwise adopt laws or
ordinances pursuant to the provisions of this act, the emergency  tenant
protection  act  of  nineteen  seventy-four,  the New York city rent and
rehabilitation law or the New York city rent stabilization  law,  except
to  the extent that such city for the purpose of reviewing the continued

S. 3364                            10

need for the existing regulation and control of residential rents or  to
remove  a  classification  of housing accommodation from such regulation
and control adopts or amends local laws or ordinances pursuant to subdi-
vision  three of section one of this act, section three of the emergency
tenant protection act of nineteen seventy-four, section  26-415  of  the
New  York  city  rent  and  rehabilitation  law, and sections 26-502 and
26-520 of the New York city rent stabilization law of  nineteen  hundred
sixty-nine.]
  Notwithstanding  any  provision of this act to the contrary, any local
law adopted pursuant to this act shall provide that notwithstanding  any
provision  of such local law in the case where all tenants occupying the
housing accommodation on the  effective  date  of  this  paragraph  have
vacated  the  housing accommodation and a family member of such vacating
tenant or tenants is entitled to and continues  to  occupy  the  housing
accommodation  subject  to the protections of such act, if such accommo-
dation continues to be subject to such  act  after  such  family  member
vacates,  on the occurrence of such vacancy the maximum collectable rent
shall be increased by a sum equal to the allowance then  in  effect  for
vacancy leases for housing accommodations covered by the rent stabiliza-
tion law of nineteen hundred sixty-nine, including the amount allowed by
paragraph  (5-a)  of  subdivision  c of section 26-511 of such law. This
increase shall be in addition to any other  increases  provided  for  in
this  act  and  shall be applicable in like manner to each second subse-
quent succession.
  Notwithstanding the foregoing, no local law or ordinance shall subject
to such regulation and control any housing accommodation  which  is  not
occupied  by  the  tenant in possession as his or her primary residence;
provided, however, that such housing accommodation not occupied  by  the
tenant  in  possession as his or her primary residence shall continue to
be subject to regulation and control as provided for herein  unless  the
city  housing  rent  agency  issues an order decontrolling such accommo-
dation, which the agency shall do upon application by the landlord when-
ever it is established by any facts  and  circumstances  which,  in  the
judgment  of  the  agency, may have a bearing upon the question of resi-
dence, that the tenant maintains his or her primary  residence  at  some
place  other  than  at such housing accommodation.   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.
  S 2. This act shall take effect immediately; provided, however, that
  a.   the amendments to subdivision 5 of section 1 of chapter 21 of the
laws of 1962 made by section one 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 emergency housing rent control
act; and
  b. the amendment to the second undesignated paragraph of subdivision 5
of section 1 of chapter 21 of the laws of 1962 made by  section  one  of
this  act shall not affect the expiration of such paragraph and shall be
deemed to expire therewith.

                                 PART E

S. 3364                            11

  Section 1. 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] 2022; 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,
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] 2022.
  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] 2022.
  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]  2022;
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

S. 3364                            12

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:
  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] 2022; 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] 2022;
  S 7. This act shall take effect immediately.

                                 PART F

  Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section  15  of  part B of chapter 97 of the laws of 2011, is amended to
read as follows:
  (e) The landlord and tenant  by  mutual  voluntary  written  agreement
agree  to  a  substantial  increase  or  decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided  in
the  housing accommodations. An adjustment under this subparagraph shall
be equal to [one-fortieth, in the case of a building with thirty-five or
fewer housing accommodations, or one-sixtieth, in the case of a building
with more than thirty-five housing accommodations where such  adjustment
takes  effect on or after September twenty-fourth, two thousand eleven,]
ONE-SIXTIETH of the total cost incurred by  the  landlord  in  providing
such  modification  or  increase in dwelling space, services, furniture,
furnishings or  equipment,  including  the  cost  of  installation,  but
excluding  finance  charges, provided further that an owner who is enti-
tled to a rent increase pursuant to this subparagraph shall not be enti-
tled to a further rent increase based upon the installation  of  similar
equipment,  or  new  furniture  or furnishings within the useful life of
such new equipment, or new furniture or  furnishings.  The  owner  shall
give  written  notice  to  the  city  rent agency of any such adjustment
pursuant to this subparagraph; or
  S 2. Paragraph 13 of subdivision c of section 26-511 of  the  adminis-
trative code of the city of New York, as amended by section 16 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
  (13) provides that an owner is entitled to a rent increase where there
has  been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment  or  improve-
ments or new furniture or furnishings provided in or to a tenant's hous-

S. 3364                            13

ing  accommodation,  on  written tenant consent to the rent increase. In
the case of a vacant housing accommodation, tenant consent shall not  be
required.
  (A)  The  permanent  increase  in  the  legal  regulated  rent for the
affected housing accommodation shall be [one-fortieth, in the case of  a
building with thirty-five or fewer housing accommodations, or one-sixti-
eth, in the case of a building with more than thirty-five housing accom-
modations where such permanent increase takes effect on or after Septem-
ber  twenty-fourth, two thousand eleven,] ONE-SIXTIETH of the total cost
incurred by the landlord in providing such modification or  increase  in
dwelling space, services, furniture, furnishings or equipment, including
the  cost  of  installation,  but  excluding  finance charges. [Provided
further that an]
  (B) AN owner who is entitled to a rent increase pursuant to this para-
graph shall not be entitled to a further rent increase  based  upon  the
installation of similar equipment, or new furniture or furnishings with-
in  the  useful  life  of  such  new  equipment,  or  new  furniture  or
furnishings.
  (C) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS  PARAGRAPH  UNTIL  THE
LANDLORD  HAS PROVIDED THE TENANT WITH A RIDER PURSUANT TO SUBDIVISION D
OF THIS SECTION, INCLUDING AN EXPLANATION OF HOW THE RENT IN THE VACANCY
LEASE HAS BEEN COMPUTED, AND THE SPECIFIC AMOUNTS  OF  ALL  EXPENDITURES
SUPPORTING A RENT INCREASE UNDER THIS PARAGRAPH.
  (D)  NO  INCREASE SHALL BE COLLECTIBLE UNDER THIS  PARAGRAPH WHERE THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL HAS DETERMINED THAT THE  OWNER
IS  NOT  MAINTAINING ALL BUILDING-WIDE REQUIRED SERVICES OR ALL REQUIRED
SERVICES WITH RESPECT TO THE AFFECTED HOUSING  ACCOMMODATION,  OR  WHERE
THERE  ARE  CURRENT HAZARDOUS VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE
OR FEDERAL LAW WHICH RELATE TO THE MAINTENANCE OF SUCH SERVICES.
  (E) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE  INCLUDING  A
RENT INCREASE PURSUANT TO THIS PARAGRAPH THAT EXCEEDS TEN PERCENT OF THE
RENT  CHARGED TO THE PREVIOUS TENANT, THE OWNER WILL FILE WITH THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL AN EXPLANATION OF HOW THE  VACANCY
RENT WAS COMPUTED, AND ALL DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION
OF  SUCH  INCREASE,  INCLUDING  BUT  NOT  LIMITED  TO, CANCELLED CHECKS,
INVOICES AND SIGNED CONTRACTS CONTEMPORANEOUSLY  WITH  THE  IMPROVEMENTS
ALLEGED,  AND  CONTRACTOR'S  AFFIDAVITS INDICATING THAT THE INSTALLATION
WAS COMPLETED AND PAID IN FULL. UPON RECEIPT OF ALL DOCUMENTS  SUBMITTED
BY THE OWNER, AND AFTER GIVING THE TENANT NAMED IN SUCH VACANCY LEASE AN
OPPORTUNITY  TO  RESPOND,  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
SHALL ISSUE AN ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN WHOLE OR
IN PART. BASED UPON SUCH DETERMINATION,  THE  DIVISION  OF  HOUSING  AND
COMMUNITY RENEWAL SHALL ORDER A REFUND TO THE TENANT EQUAL TO THE AMOUNT
COLLECTED IN EXCESS OF THE LEGAL REGULATED RENT APPROVED BY THE DIVISION
OF HOUSING AND COMMUNITY RENEWAL.
  (F) IF THE OWNER FAILS TO ESTABLISH BY A PREPONDERANCE OF THE EVIDENCE
THAT THE OVERCHARGE WAS NOT WILLFUL, THE DIVISION OF  HOUSING AND COMMU-
NITY  RENEWAL  SHALL  ORDER THE OWNER TO PAY TO THE TENANT AN ADDITIONAL
AMOUNT EQUAL TO THREE TIMES THE EXCESS CHARGED.
  (G) THE NEXT ANNUAL  REGISTRATION  STATEMENT  FILED  FOR  ANY  HOUSING
ACCOMMODATION  SUBJECT  TO  AN INCREASE UNDER THIS PARAGRAPH, WHETHER OR
NOT SUBJECT TO THE PROVISIONS OF  SUBPARAGRAPH  (E)  OF  THIS  PARAGRAPH
SHALL  CONTAIN  A  DETAILED  BREAKDOWN  OF THE COSTS OF ALL IMPROVEMENTS
UNDERLYING SUCH INCREASE.

S. 3364                            14

  S 3. Paragraph 2 of subdivision d of section 26-511 of the administra-
tive code of the city of New York is renumbered paragraph 3  and  a  new
paragraph 2 is added to read as follows:
  (2)  FOR VACANCY LEASES, SUCH RIDER SHALL ALSO INCLUDE A NOTICE OF THE
PRIOR LEGAL RENT, IF ANY, THAT WAS IN EFFECT IMMEDIATELY  PRIOR  TO  THE
VACANCY,  AN  EXPLANATION  OF  HOW  THE RENTAL AMOUNT HAS BEEN COMPUTED,
INCLUDING A DETAILED BREAKDOWN OF THE NATURE AND COST  OF  ANY  IMPROVE-
MENTS  UNDERLYING  AN INCREASE UNDER PARAGRAPH THIRTEEN OF SUBDIVISION C
OF THIS SECTION, AND A STATEMENT THAT ANY INCREASE  ABOVE  THE  PREVIOUS
RENT IS IN ACCORDANCE WITH ADJUSTMENTS PERMITTED BY LAW.
  S 4. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
576  of  the  laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as amended by section  18  of  part  B  of
chapter 97 of the laws of 2011, is amended to read as follows:
  (1)  there has been a substantial modification or increase of dwelling
space or an increase in the services, or installation of  new  equipment
or  improvements  or  new  furniture or furnishings, provided in or to a
tenant's housing accommodation, on written tenant consent  to  the  rent
increase.  In the case of a vacant housing accommodation, tenant consent
shall not be required.
  (A) The permanent  increase  in  the  legal  regulated  rent  for  the
affected  housing accommodation shall be [one-fortieth] ONE-SIXTIETH, in
the case of a building with thirty-five or fewer housing accommodations,
or one-sixtieth, in the case of a building with  more  than  thirty-five
housing  accommodations where such permanent increase takes effect on or
after September twenty-fourth, two thousand eleven, of  the  total  cost
incurred  by  the landlord in providing such modification or increase in
dwelling space, services, furniture, furnishings or equipment, including
the cost of  installation,  but  excluding  finance  charges.  [Provided
further that an]
  (B) AN owner who is entitled to a rent increase pursuant to this para-
graph  shall  not  be entitled to a further rent increase based upon the
installation of similar equipment, or new furniture or furnishings with-
in  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.
  (D) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS  PARAGRAPH  WHERE  THE
DIVISION  OF HOUSING AND COMMUNITY RENEWAL HAS DETERMINED THAT THE OWNER
IS NOT MAINTAINING ALL BUILDING-WIDE REQUIRED SERVICES OR  ALL  REQUIRED
SERVICES  WITH  RESPECT  TO THE AFFECTED HOUSING ACCOMMODATION, OR WHERE
THERE ARE CURRENT HAZARDOUS VIOLATIONS OF ANY MUNICIPAL,  COUNTY,  STATE
OR FEDERAL LAW WHICH RELATE TO THE MAINTENANCE OF SUCH SERVICES.
  (E)  WITHIN  THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE PURSUANT TO THIS PARAGRAPH THAT EXCEEDS TEN PERCENT OF THE
RENT CHARGED TO THE PREVIOUS TENANT, THE OWNER WILL FILE WITH THE  DIVI-
SION  AN EXPLANATION OF HOW THE VACANCY RENT WAS COMPUTED, AND ALL DOCU-
MENTS NECESSARY TO SUPPORT THE COLLECTION OF  SUCH  INCREASE,  INCLUDING
BUT  NOT  LIMITED  TO,  CANCELLED  CHECKS, INVOICES AND SIGNED CONTRACTS

S. 3364                            15

CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED, AND CONTRACTOR'S  AFFI-
DAVITS  INDICATING THAT THE INSTALLATION WAS COMPLETED AND PAID IN FULL.
UPON RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE OWNER  AND  AFTER  GIVING
THE  TENANT  NAMED  IN  THE VACANCY LEASE AN OPPORTUNITY TO RESPOND, THE
DIVISION SHALL ISSUE AN ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN
WHOLE OR IN PART. BASED UPON  SUCH  DETERMINATION,  THE  DIVISION  SHALL
ORDER  A REFUND TO THE TENANT EQUAL TO THE AMOUNT COLLECTED IN EXCESS OF
THE LEGAL REGULATED RENT APPROVED BY THE DIVISION.
  (F) IF THE OWNER FAILS TO ESTABLISH BY A PREPONDERANCE OF THE EVIDENCE
THAT THE OVERCHARGE WAS NOT WILLFUL, THE DIVISION SHALL ORDER THE  OWNER
TO  PAY  TO  THE  TENANT  AN  ADDITIONAL AMOUNT EQUAL TO THREE TIMES THE
EXCESS CHARGED.
  (G) THE NEXT ANNUAL  REGISTRATION  STATEMENT  FILED  FOR  ANY  HOUSING
ACCOMMODATION  SUBJECT  TO  AN INCREASE UNDER THIS PARAGRAPH, WHETHER OR
NOT SUBJECT TO THE PROVISIONS OF  SUBPARAGRAPH  (E)  OF  THIS  PARAGRAPH
SHALL  CONTAIN  A  DETAILED  BREAKDOWN  OF THE COSTS OF ALL IMPROVEMENTS
UNDERLYING SUCH INCREASE.
  S 5. Clause 5 of the second undesignated paragraph of paragraph (a) of
subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
tuting  the emergency housing rent control law, as amended by section 25
of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
follows:
  (5)  the  landlord  and  tenant  by mutual voluntary written agreement
agree to a substantial increase or  decrease  in  dwelling  space  or  a
change  in the services, furniture, furnishings or equipment provided in
the housing accommodations; provided that an owner shall be entitled  to
a  rent  increase  where  there  has  been a substantial modification or
increase of dwelling space or an increase in the services, or  installa-
tion  of  new  equipment or improvements or new furniture or furnishings
provided in or  to  a  tenant's  housing  accommodation.  The  permanent
increase  in  the  maximum  rent  for the affected housing accommodation
shall be [one-fortieth] ONE-SIXTIETH, in the case  of  a  building  with
thirty-five  or  fewer  housing  accommodations, or one-sixtieth, in the
case of a building with more  than  thirty-five  housing  accommodations
where  such  permanent increase takes effect on or after September twen-
ty-fourth, two thousand eleven, of the total cost incurred by the  land-
lord  in  providing  such  modification  or  increase in dwelling space,
services, furniture, furnishings or equipment,  including  the  cost  of
installation,  but  excluding  finance  charges provided further that an
owner who is entitled to a rent increase pursuant to this  clause  shall
not  be  entitled to a further rent increase based upon the installation
of similar equipment, or new furniture or furnishings within the  useful
life  of  such new equipment, or new furniture or furnishings. The owner
shall give written notice to  the  commission  of  any  such  adjustment
pursuant to this clause; or
  S  6.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided that:
  a. the amendments to section 26-405 of the  city  rent  and  rehabili-
tation  law  made  by section one of this act shall remain in full force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing  rent  control
act;
  b.  the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections two and three of this act shall

S. 3364                            16

expire on the same date as such law expires and  shall  not  affect  the
expiration of such law as provided under section 26-520 of such law;
  c.  the  amendments to the emergency tenant protection act of nineteen
seventy-four made by section four 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;
  d.  the  amendments to section 4 of the emergency housing rent control
law made by section five of this act shall expire on the  same  date  as
such  law  expires  and  shall  not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
1946; and
  e.  effective  immediately,  the  division  of  housing  and community
renewal is authorized to and shall promulgate all rules, regulations and
standards necessary to implement the provisions of this act.

                                 PART G

  Section 1. Legislative findings  and  declaration  of  emergency.  The
legislature  hereby finds and declares that the serious public emergency
which led to the enactment of the existing laws  regulating  residential
rents  and  evictions  continues  to  exist; that such laws would better
serve the public interest if certain changes were made thereto,  includ-
ing  the  continued  regulation  of  certain housing accommodations that
become vacant and the reinstatement of  regulation  of  certain  housing
accommodations that have been deregulated upon vacancy.
  The  legislature  further  recognizes  that  severe  disruption of the
rental housing market has occurred and threatens to be exacerbated as  a
result  of  the present state of the law in relation to the deregulation
of housing accommodations upon  vacancy.  The  situation  has  permitted
speculative and profiteering practices and has brought about the loss of
vital and irreplaceable affordable housing for working persons and fami-
lies.
  The legislature therefore declares that in order to prevent uncertain-
ty,  potential  hardship  and  dislocation  of tenants living in housing
accommodations subject to  government  regulations  as  to  rentals  and
continued occupancy as well as those not subject to such regulation, the
provisions of this act are necessary to protect the public health, safe-
ty  and  general  welfare.  The necessity in the public interest for the
provisions hereinafter enacted is hereby declared as a matter of  legis-
lative determination.
  S 2. 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 3. 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 4. 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  5.  Section  26-504.2 of the administrative code of the city of New
York is REPEALED.
  S 6. Any housing accommodations that on or after January 1, 2007  were
excluded from coverage from the emergency tenant protection act of nine-
teen  seventy-four, the emergency housing rent control law or the admin-
istrative code of the city of New York pursuant to the provisions of law
repealed by sections two, three, four and five  of  this  act  shall  be
subject  to  the  provisions  of  such  act, law or administrative code,

S. 3364                            17

respectively.  Notwithstanding the provisions of  any  lease  or  rental
agreement,  the  legal regulated rent or maximum collectible rent of any
housing accommodation excluded from regulation on or  after  January  1,
2007  by  reason of the provisions repealed by sections two, three, four
and five of this act shall  be  the  legal  regulated  rent  or  maximum
collectible  rent applicable to such accommodation on December 31, 2006,
subject to further adjustment in accordance with  applicable  provisions
of law.
  S  7.  Any  housing  accommodations that prior to January 1, 2007 were
excluded from coverage from the emergency tenant protection act of nine-
teen seventy-four, the emergency housing rent control law or the  admin-
istrative 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 on or after January 1, 2007 for less than
$3,500 per month or were located within the city of New  York  and  were
rented  to  a tenant on or after January 1, 2007 for less than $5,000.00
per month, shall be subject to the provisions of such act, law or admin-
istrative 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
January 1, 2007 by reason of the provisions repealed  by  sections  two,
three, four and five of this act and made subject to regulation shall be
the  actual rent applicable to such accommodations on January 1, 2007 or
the first rent applicable to such accommodation after January  1,  2007,
subject  to  further adjustment in accordance with applicable provisions
of law.
  S 8.  This act shall take effect immediately.

                                 PART H

  Section 1. 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. 3364                            18

  S  2.  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
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 law pursuant to section 26-504.2 of this chapter.]
  S  3.  This act shall take effect immediately; provided, however, that
the amendments to section 10 of the emergency tenant protection  act  of
nineteen  seventy-four  made  by section one of this act shall expire on
the same date as such act expires and shall not affect the expiration of
such act as provided in section 17 of chapter 576 of the laws  of  1974;
and provided, further, that the amendments to section 26-511 of the rent
stabilization  law of nineteen hundred sixty-nine made by section two of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided under  section  26-520  of
such law.

                                 PART I

  Section  1.  Paragraph  6-a  of subdivision c of section 26-511 of the
administrative 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
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

S. 3364                            19

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 2. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
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
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

S. 3364                            20

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 3. This act shall take effect immediately; provided that
  a. the amendments to section 26-511 of chapter 4 of title  26  of  the
administrative  code of the city of New York made by section 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 under section 26-520 of
such law; and
  b. the amendments to section 6 of the emergency tenant protection  act
of nineteen seventy-four made by section two 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.

                                 PART J

S. 3364                            21

  Section 1. 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 FINDS THAT SUCH IMPROVEMENTS ARE DEEMED
DEPRECIABLE UNDER THE INTERNAL REVENUE CODE AND  SUCH  IMPROVEMENTS  ARE
REQUIRED  FOR  THE  OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUC-
TURE. THE INCREASE PERMITTED  FOR  SUCH  CAPITAL  IMPROVEMENT  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 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
EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED  SIX  PERCENT
LIMITATION DID NOT APPLY; or
  S  2.  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
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 3. Paragraph 6 of subdivision c of section 26-511 of the administra-
tive 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 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 manage-
ment fees) for the three year period ending on or within six  months  of

S. 3364                            22

the  date  of  an application pursuant to such criteria as compared with
annual net income, which prevailed on the average over the period  nine-
teen  hundred  sixty-eight  through nineteen hundred seventy, or for the
first three years of operation if the building was completed since nine-
teen  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  nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in  title  and
further  provided that the new owner can provide financial data covering
a minimum of six years under his or  her  continuous  and  uninterrupted
operation  of  the building to meet the three year to three year compar-
ative 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 deter-
mined by the commissioner, (iii) actual  annual  mortgage  debt  service
(interest  and  amortization)  on its indebtedness to a lending institu-
tion, 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;
  S 4. Subdivision c of section 26-511 of the administrative code of the
city  of New York is amended by adding two new paragraphs 6-b and 6-c 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 AS TO COMPLETED BUILDING-WIDE MAJOR  CAPITAL  IMPROVE-
MENTS, FOR A FINDING THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
THE  INTERNAL  REVENUE  CODE  AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
OPERATION, PRESERVATION OR MAINTENANCE OF THE  STRUCTURE.  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

S. 3364                            23

THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLO-
CABLE  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.
  (6-C) COLLECTION OF SURCHARGES IN EXCESS OF THE  LEVEL  OF  FAIR  RENT
AUTHORIZED  PURSUANT  TO PARAGRAPH SIX-B OF THIS SUBDIVISION SHALL CEASE
WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT.
  S 5. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the  emergency  tenant  protection
act  of  nineteen seventy-four, as amended by 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 FINDS THAT SUCH IMPROVEMENTS ARE DEEMED  DEPRECIABLE  UNDER
THE  INTERNAL  REVENUE  CODE  AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE.   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  RENT
ADJUSTMENT  AUTHORIZED  BY THE RENT GUIDELINES BOARD UNDER THIS ACT. 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  AFOREMEN-
TIONED SIX PERCENT LIMITATION DID NOT APPLY, or
  S 6. The second undesignated paragraph of paragraph (a) of subdivision
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

S. 3364                            24

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
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.
The  permanent  increase  in  the  maximum rent for the affected housing
accommodation shall be one-fortieth, in the  case  of  a  building  with
thirty-five  or  fewer  housing  accommodations, or one-sixtieth, in the
case of a building with more  than  thirty-five  housing  accommodations
where  such  permanent increase takes effect on or after September twen-
ty-fourth, two thousand eleven, of the total cost incurred by the  land-
lord  in  providing  such  modification  or  increase in dwelling space,
services, furniture, furnishings or equipment,  including  the  cost  of
installation,  but  excluding  finance  charges provided further that an
owner who is entitled to a rent increase pursuant to this  clause  shall
not  be  entitled to a further rent increase based upon the installation

S. 3364                            25

of similar equipment, or new furniture or furnishings within the  useful
life  of  such new equipment, or new furniture or furnishings. The owner
shall give written notice to  the  commission  of  any  such  adjustment
pursuant to this clause; or (6) there has been, since March first, nine-
teen  hundred  fifty,  an  increase  in  the rental value of the housing
accommodations as a result of a substantial rehabilitation of the build-
ing 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 COMMIS-
SIONER  FINDS  THAT  SUCH  IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER THE
INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE  OPERA-
TION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE PERMIT-
TED  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 ALLO-
CABLE 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 APART-
MENT 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; 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, howev-
er, that no adjustment granted hereunder shall exceed fifteen per centum
unless the tenants have agreed to a higher percentage  of  increase,  as
herein  provided;  or  (9)  there  has been, since March first, nineteen
hundred fifty, a subletting without written consent from the landlord or
an increase in the number of adult 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
rents generally prevailing in the same area  for  substantially  similar
housing accommodations.
  S 7. This act shall take effect immediately; provided that
  a.  the  amendments  to  section 26-405 of the city rent and rehabili-
tation law made by sections one and two 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  emergency  housing
rent control act;
  b.  the  amendments to section 26-511 of the rent stabilization law of
nineteen hundred sixty-nine made by sections three and four of this  act

S. 3364                            26

shall  expire  on the same date as such law expires and shall not affect
the expiration of such law as provided under section 26-520 of such law,
as from time to time amended;
  c.  the  amendment to section 6 of the emergency tenant protection act
of nineteen seventy-four made by section 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, as from time to time amended; and
  d. the amendment to section 4 of the emergency  housing  rent  control
law  made  by  section  six of this act shall expire on the same date as
such law expires and shall not affect the  expiration  of  such  law  as
provided  in  subdivision  2  of section 1 of chapter 274 of the laws of
1946.

                                 PART K

  Section 1. 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, NOTHING SHALL PREVENT THE DECLARATION OF AN EMER-
GENCY PURSUANT TO SECTION THREE OF THIS ACT FOR RENTAL HOUSING  ACCOMMO-
DATIONS  LOCATED  IN BUILDINGS WHICH WERE OWNED BY A COMPANY ESTABLISHED
UNDER ARTICLE 2 OF THE PRIVATE HOUSING FINANCE LAW, OTHER THAN A  MUTUAL
COMPANY,  BY REASON OF A VOLUNTARY DISSOLUTION PURSUANT TO SECTION 35 OF
SUCH LAW. 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 2. This act shall take effect immediately and shall apply to housing
companies that dissolve before, on or after such date; provided,  howev-
er,  that the amendments to the emergency tenant protection act of nine-
teen seventy-four made by this act shall not affect  the  expiration  of
such  act  as provided in section 17 of chapter 576 of the laws of 1974,
as amended and shall be deemed to expire therewith.

                                 PART L

  Section 1. Paragraph 12 of subdivision a of section 5 of section 4  of
chapter  576  of  the  laws  of  1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended  by  section  29  of
part B of chapter 97 of the laws of 2011, is amended to read as follows:
  (12) upon issuance of an order by the division, housing accommodations
which  are:  (1)  occupied  by persons who have a total annual income as
defined in and subject to the  limitations  and  process  set  forth  in
section five-a of this act [in excess of], THAT EXCEEDS the deregulation
income  threshold,  as defined in section five-a of this act, in each of
the two preceding calendar years; and (2) have a  legal  regulated  rent
that  equals  or  exceeds the deregulation rent threshold, as defined in
section five-a of this act. Provided however, that this exclusion  shall
not  apply  to  housing accommodations which became or become subject to
this act (a) by virtue of receiving tax  benefits  pursuant  to  section
four  hundred twenty-one-a or four hundred eighty-nine of the real prop-
erty tax law, except as otherwise provided in subparagraph (i) of  para-
graph (f) of subdivision two of section four hundred twenty-one-a of the

S. 3364                            27

real property tax law, or (b) by virtue of article seven-C of the multi-
ple dwelling law.
  S  2.  Paragraph (a) of section 5-a 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 section 30 of part B of chapter 97 of
the laws of 2011, is amended to read as follows:
  (a) 1. For purposes of this section,  annual  income  shall  mean  the
federal  adjusted  gross income as reported on the New York state income
tax return. Total annual income means the sum of the annual  incomes  of
all  persons  whose  names  are  recited as the tenant or co-tenant on a
lease who occupy the housing accommodation and all  other  persons  that
occupy  the  housing  accommodation  as their primary residence on other
than a temporary basis, excluding bona fide employees of such  occupants
residing  therein  in connection with such employment and excluding bona
fide subtenants in occupancy pursuant to the provisions of  section  two
hundred twenty-six-b of the real property law. In the case where a hous-
ing  accommodation is sublet, the annual income of the tenant or co-ten-
ant recited on the lease who will  reoccupy  the  housing  accommodation
upon the expiration of the sublease shall be considered.
  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.
  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.]
  DEREGULATION  INCOME  THRESHOLD  MEANS THREE HUNDRED THOUSAND DOLLARS.
FOR PROCEEDINGS COMMENCED  ON  OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR  BY  THE  CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS, NEW YORK-NORTHERN NEW  JERSEY-LONG  ISLAND,  NY-NJ-CT-PA,  AS
ESTABLISHED THE PRECEDING AUGUST.
  3.  DEREGULATION  RENT  THRESHOLD  MEANS  THREE  THOUSAND DOLLARS. FOR
PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO  THOUSAND  SIXTEEN,
THE  DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE FIRST
DAY OF OCTOBER EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY  THE
CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, NEW
YORK-NORTHERN  NEW  JERSEY-LONG  ISLAND, NY-NJ-CT-PA, AS ESTABLISHED THE
PRECEDING AUGUST.
  S 3. Paragraph (m) of subdivision 2 of section 2 of chapter 274 of the
laws of 1946, constituting the emergency housing rent  control  law,  as
amended  by  section  31 of part B of chapter 97 of the laws of 2011, is
amended to read as follows:
  (m) upon the issuance of an order of  deregulation  by  the  division,
housing  accommodations  which:  (1)  are occupied by persons who have a
total annual income, as defined in and subject to  the  limitations  and
process set forth in section two-a of this law[, in excess of the dereg-
ulation income threshold as defined in section two-a of this law in each
of  the two preceding calendar years;] and (2) have a maximum rent [that
equals or exceeds the deregulation rent threshold as defined in  section
two-a of this law].

S. 3364                            28

  S  4.  Subdivision  (a)  of  section 2-a of chapter 274 of the laws of
1946, constituting the emergency housing rent control law, as amended by
section 32 of part B of chapter 97 of the laws of 2011,  is  amended  to
read as follows:
  (a)  1.  For  purposes  of  this section, annual income shall mean the
federal adjusted gross income as reported on the New York  state  income
tax  return.  Total annual income means the sum of the annual incomes of
all persons who occupy the housing accommodation as their primary  resi-
dence  on other than a temporary basis, excluding bona fide employees of
such occupants residing therein in connection with such  employment  and
excluding  bona  fide subtenants in occupancy pursuant to the provisions
of section two hundred twenty-six-b of the real  property  law.  In  the
case  where  a housing accommodation is sublet, the annual income of the
sublessor shall be considered.
  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.
  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
deregulation rent threshold means two thousand five hundred dollars.]
  DEREGULATION INCOME THRESHOLD MEANS THREE  HUNDRED  THOUSAND  DOLLARS.
FOR  PROCEEDINGS  COMMENCED  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND
SIXTEEN, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX  FOR  ALL  URBAN
CONSUMERS,  NEW  YORK-NORTHERN  NEW  JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
  3. DEREGULATION RENT THRESHOLD MEANS  THREE  THOUSAND  DOLLARS.    FOR
PROCEEDINGS  COMMENCED  ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,
THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE  FIRST
DAY  OF  OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY
THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS,
NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND,  NY-NJ-CT-PA,  AS  ESTABLISHED
THE PRECEDING AUGUST.
  S 5. Subdivision (a) of section 26-403.1 of the administrative code of
the  city  of New York, as amended by section 34 of part B of chapter 97
of the laws of 2011, is amended to read as follows:
  (a) 1. For purposes of this section,  annual  income  shall  mean  the
federal  adjusted  gross income as reported on the New York state income
tax return. Total annual income means the sum of the annual  incomes  of
all  persons who occupy the housing accommodation as their primary resi-
dence other than on a temporary basis, excluding bona fide employees  of
such  occupants  residing therein in connection with such employment and
excluding bona fide subtenants in occupancy pursuant to  the  provisions
of  section  two  hundred  twenty-six-b of the real property law. In the
case where a housing accommodation is sublet, the annual income  of  the
sublessor shall be considered.
  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-

S. 3364                            29

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.
  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.]
  DEREGULATION INCOME THRESHOLD MEANS THREE  HUNDRED  THOUSAND  DOLLARS.
FOR  PROCEEDINGS  COMMENCED  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND
SIXTEEN, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX  FOR  ALL  URBAN
CONSUMERS,  NEW  YORK-NORTHERN  NEW  JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
  3. DEREGULATION RENT THRESHOLD MEANS  THREE  THOUSAND  DOLLARS.    FOR
PROCEEDINGS  COMMENCED  ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,
THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE  FIRST
DAY  OF  OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY
THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS,
NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND,  NY-NJ-CT-PA,  AS  ESTABLISHED
THE PRECEDING AUGUST.
  S  6. 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.
  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.]
  DEREGULATION INCOME THRESHOLD MEANS THREE  HUNDRED  THOUSAND  DOLLARS.
FOR  PROCEEDINGS  COMMENCED  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND
SIXTEEN, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX  FOR  ALL  URBAN
CONSUMERS,  NEW  YORK-NORTHERN  NEW  JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
  3. DEREGULATION RENT THRESHOLD MEANS  THREE  THOUSAND  DOLLARS.    FOR
PROCEEDINGS  COMMENCED  ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,
THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE  FIRST
DAY  OF  OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY
THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS,
NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND,  NY-NJ-CT-PA,  AS  ESTABLISHED
THE PRECEDING AUGUST.
  S 7. This act shall take effect immediately, provided, however, that:
  a.  the  amendments  to paragraph 12 of subdivision a of section 5 and
section 5-a of section 4 of the emergency tenant protection act of nine-
teen seventy-four made by sections one and two of this act,  respective-
ly,  shall  expire  on  the  same date as such act expires and shall not

S. 3364                            30

affect the expiration of such act as provided in section 17  of  chapter
576 of the laws of 1974;
  b.  the  amendments to paragraph (m) of subdivision 2 of section 2 and
section 2-a of the emergency housing rent control law made  by  sections
three  and four of this act, respectively, 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;
  c. the amendments to section 26-403.1 of the city rent  and  rehabili-
tation  law  made by section five of this act shall remain in full force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing  rent  control
act; and
  d.  the amendments to section 26-504.3 of chapter 4 of title 26 of the
administrative code of the city of New York made by section six of  this
act  shall  expire  on  the  same date as such law expires and shall not
affect the expiration of such law as provided under  section  26-520  of
such law.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment  shall have been rendered.  It is  hereby declared to be the intent
of the legislature that this act would have been enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective dates of Parts A through L of this act shall be
as specifically set forth in the last section of such Parts.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3364--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 5, 2015
                               ___________

Introduced by Sens. ESPAILLAT, ADDABBO, AVELLA, BRESLIN, DIAZ, GIANARIS,
  HASSELL-THOMPSON,   HOYLMAN,  KRUEGER,  MONTGOMERY,  PARKER,  PERALTA,
  PERKINS,  RIVERA,  SAMPSON,  SAVINO,  SERRANO,   SQUADRON,   STAVISKY,
  STEWART-COUSINS -- read twice and ordered printed, and when printed to
  be  committed  to the Committee on Housing, Construction and Community
  Development -- committee discharged, bill amended,  ordered  reprinted
  as amended and recommitted to said committee

AN  ACT  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  recovery  of  certain
  housing  accommodations  by a landlord (Part A); to amend the adminis-
  trative code of  the  city  of  New  York  and  the  emergency  tenant
  protection  act of nineteen seventy-four, in relation to limiting rent
  increase after vacancy of a housing accommodation; and  to  amend  the
  administrative  code  of  the  city  of New York, the emergency tenant
  protection act of nineteen seventy-four and the emergency housing rent
  control law, in relation to adjustment of maximum allowable rent (Part
  B); to amend the emergency tenant protection act of nineteen  seventy-
  four, in relation to limited-profit housing companies and other build-
  ings  or  structures  which  received  project-based rental assistance
  (Part C); to amend the local emergency housing rent  control  act,  in
  relation to rent regulation laws (Part D); to amend 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,  the
  emergency  housing  rent  control law, chapter 329 of the laws of 1963
  amending the emergency housing rent control law relating to  recontrol
  of  rents  in  Albany,  chapter  555  of the laws of 1982 amending the
  general business law and the administrative code of the  city  of  New
  York  relating to conversion of residential property to cooperative or
  condominium ownership in the city of New York, 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 and the rent regulation reform act of 1997,  in  relation  to

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

                                                           LBD08859-03-5

S. 3364--A                          2

  extending  the  effectiveness  thereof  (Part  E); to amend the public
  housing law, in relation to the  definition  of  "family  member";  to
  amend the administrative code of the city of New York and the emergen-
  cy  tenant protection act of nineteen seventy-four, in relation to the
  definition of a tenant (Part F); to amend the administrative  code  of
  the  city of New York and the emergency tenant protection act of nine-
  teen seventy-four, in relation to making conforming technical changes;
  and to repeal paragraph 13 of subdivision a of section 5 of section  4
  of  chapter  576 of the laws of 1974 constituting the emergency tenant
  protection act of nineteen seventy-four, paragraph (n) of  subdivision
  2  of  section  2 of chapter 274 of the laws of 1946, constituting the
  emergency housing rent control law, and section 26-504.2 and  subpara-
  graph  (k)  of  paragraph  2 of subdivision e of section 26-403 of the
  administrative code of the city  of  New  York,  relating  to  vacancy
  decontrol  (Part  G);  to amend the emergency tenant protection act of
  nineteen seventy-four and the administrative code of the city  of  New
  York,  in  relation  to the regulation of rents (Part H); 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 (Part I); 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  extending
  the  length  of time over which major capital improvement expenses may
  be recovered and in relation to approval of major capital  improvement
  rent  increases (Part J); to amend the administrative code of the city
  of New York and the emergency housing rent control law, in relation to
  the  establishment  of  rent  adjustments;   and   repealing   certain
  provisions of the administrative code of the city of New York relating
  thereto  (Part K); and to amend the administrative code of the city of
  New York, in relation to surcharges for the  installation  or  use  of
  certain  appliances  in housing accommodations subject to rent control
  (Part L)

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

  Section  1.  This  act enacts into law major components of legislation
related to rent regulations in the state of New York. Each component  is
wholly  contained  within  a  Part  identified as Parts A through L. The
effective date for each particular provision contained within such  Part
is  set  forth  in  the  last section of such Part. Any provision in any
section contained within a Part, including the  effective  date  of  the
Part,  which  makes  reference  to a section "of this act", when used in
connection with that particular component, shall be deemed to  mean  and
refer  to  the  corresponding  section of the Part in which it is found.
Section four of this act sets forth the general effective date  of  this
act.
  S  2.  This  act  shall  be  known  and  may  be  cited as the "Tenant
Protection Act of 2015".

                                 PART A

  Section 1. Paragraph 1 of subdivision  b  of  section  26-408  of  the
administrative  code  of  the  city  of  New  York is amended to read as
follows:

S. 3364--A                          3

  (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-
dation in that building for twenty 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; or
  S  2.  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 TWENTY 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 3. 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

S. 3364--A                          4

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-
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  years  or  more, or has an impairment which results from anatom-
ical, 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 4. 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 years or more, or has
an impairment which results from anatomical, physiological or psycholog-
ical 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  substan-
tial gainful employment; or
  S  5.  This  act  shall take effect immediately and shall apply to any
tenant in possession at or after the time it takes effect, regardless of
whether the landlord's application for an  order,  refusal  to  renew  a
lease or refusal to extend or renew a tenancy took place before this act
shall have taken effect, provided that:

S. 3364--A                          5

  a.  the  amendments  to  section 26-408 of the city rent and rehabili-
tation law made by section one of this act shall remain  in  full  force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision  3  of section 1 of the local emergency housing rent control
act;
  b. the amendments to section 26-511 of the rent stabilization  law  of
nineteen hundred sixty-nine made by section two of this act shall expire
on the same date as such law expires and shall not affect the expiration
of such law as provided under section 26-520 of such law;
  c.  the  amendments to subdivision a of section 10 of section 4 of the
emergency tenant protection act of nineteen seventy-four made by section
three 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; and
  d.  the  amendments  to paragraph (a) of subdivision 2 of section 5 of
the emergency housing rent control law made by section four of this  act
shall  expire  on the same date as such law expires and shall not affect
the expiration of such law as provided in subdivision 2 of section 1  of
chapter 274 of the laws of 1946.

                                 PART B

  Section  1.  Paragraph  5-a  of subdivision c of section 26-511 of the
administrative 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 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 percent of  the  previous  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  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  addi-
tion,  if] 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 product resulting from multiplying such previ-
ous legal regulated rent by six-tenths of one percent and further multi-
plying 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

S. 3364--A                          6

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 chap-
ter 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 imple-
mented more than one time in  any  calendar  year,  notwithstanding  the
number  of  vacancy  leases  entered  into  in such year, AND MAY NOT BE
IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW TENANT AN ITEMIZED
COST ACCOUNTING OF ALL IMPROVEMENTS CLAIMED AS PART OF SUCH INCREASE AND
COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE AGREEMENT.
  S 2. 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 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 percent of the previous 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  guide-
lines  board of the county in which the housing accommodation is located
applied to the previous legal regulated rent. In addition,  if]  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 resulting from multiplying such previous
legal regulated rent by six-tenths of one percent and further  multiply-
ing  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
act, the number of  years  that  such  housing  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 thereof, but shall
be] in addition to any other increases authorized pursuant to  this  act
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
section six of this act. The increase authorized in this subdivision may

S. 3364--A                          7

not  be  implemented  more  than one time in any calendar year, notwith-
standing the number of vacancy leases entered into in such year, AND MAY
NOT BE IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW  TENANT  AN
ITEMIZED  COST  ACCOUNTING  OF  ALL IMPROVEMENTS CLAIMED AS PART OF SUCH
INCREASE AND COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE  AGREE-
MENT.
  S  3.  Subparagraph  (e)  of  paragraph  1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section 15 of part B of chapter 97 of the laws of 2011,  is  amended  to
read as follows:
  (e)  The  landlord  and  tenant  by mutual voluntary written agreement
agree to a substantial increase or  decrease  in  dwelling  space  or  a
change  in the services, furniture, furnishings or equipment provided in
the housing accommodations. An adjustment under this subparagraph  shall
be  equal to one-fortieth, in the case of a building with thirty-five or
fewer housing accommodations, or  [one-sixtieth]  ONE-EIGHTY-FOURTH,  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, 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, WITH AN ADJUSTMENT, IN BOTH CASES,  BEING
NO  MORE  THAN TWENTY PERCENT OF THE CURRENT RENT, provided further that
an owner who is entitled to a rent increase pursuant  to  this  subpara-
graph  shall  not  be entitled to a further rent increase based upon the
installation of similar equipment, or new furniture or furnishings with-
in  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  4.  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. The permanent increase in the legal  regulated  rent  for  the
affected  housing  accommodation shall be one-fortieth, in the case of a
building with thirty-five or fewer housing accommodations, or  [one-six-
tieth] ONE-EIGHTY-FOURTH, in the case of a building with more than thir-
ty-five  housing  accommodations  where  such  permanent  increase takes
effect on or after September twenty-fourth, two thousand eleven, of  the
total  cost  incurred  by the landlord in providing such modification or
increase in dwelling space, services, furniture, furnishings  or  equip-
ment, including the cost of installation, but excluding finance charges,
PROVIDED, HOWEVER, THAT IN BOTH CASES, THE PERMANENT INCREASE IS NO MORE
THAN  TWENTY  PERCENT  OF  THE  CURRENT  LEGAL  REGULATED RENT. 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  furniture  or
furnishings  within the useful life of such new equipment, or new furni-
ture or furnishings.
  S 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the  emergency  tenant  protection

S. 3364--A                          8

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. The permanent increase  in  the  legal  regulated
rent  for  the  affected housing accommodation shall be one-fortieth, in
the case of a building with thirty-five or fewer housing accommodations,
or [one-sixtieth] ONE-EIGHTY-FOURTH, in the case of a building with more
than thirty-five housing accommodations where  such  permanent  increase
takes  effect  on or after September twenty-fourth, two thousand eleven,
of the total cost incurred by the landlord in providing  such  modifica-
tion  or increase in dwelling space, services, furniture, furnishings or
equipment, including the cost of  installation,  but  excluding  finance
charges,  PROVIDED,  HOWEVER, THAT IN BOTH CASES, THE PERMANENT INCREASE
IS NO MORE THAN TWENTY PERCENT OF  THE  CURRENT  LEGAL  REGULATED  RENT.
Provided further that an owner who is entitled to a rent increase pursu-
ant  to  this paragraph shall not be entitled to a further rent increase
based upon the installation of similar equipment, or  new  furniture  or
furnishings  within the useful life of such new equipment, or new furni-
ture or furnishings.
  S 6. Clause 5 of the second undesignated paragraph of paragraph (a) of
subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
tuting  the emergency housing rent control law, as amended by section 25
of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
follows:
  (5)  the  landlord  and  tenant  by mutual voluntary written agreement
agree to a substantial increase or  decrease  in  dwelling  space  or  a
change  in the services, furniture, furnishings or equipment provided in
the housing accommodations; provided that an owner shall be entitled  to
a  rent  increase  where  there  has  been a substantial modification or
increase of dwelling space or an increase in the services, or  installa-
tion  of  new  equipment or improvements or new furniture or furnishings
provided in or  to  a  tenant's  housing  accommodation.  The  permanent
increase  in  the  maximum  rent  for the affected housing accommodation
shall be one-fortieth, in the case of a  building  with  thirty-five  or
fewer  housing  accommodations,  or [one-sixtieth] ONE-EIGHTY-FOURTH, 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, of the total cost incurred by the land-
lord in providing such  modification  or  increase  in  dwelling  space,
services,  furniture,  furnishings  or  equipment, including the cost of
installation, but excluding finance charges, PROVIDED, HOWEVER, THAT  IN
BOTH CASES, THE PERMANENT INCREASE IS NO MORE THAN TWENTY PERCENT OF THE
CURRENT  RENT,  AND  provided further that an owner who is entitled to a
rent increase pursuant to this clause shall not be entitled to a further
rent increase based upon the installation of similar equipment,  or  new
furniture  or  furnishings within the useful life of such new equipment,
or new furniture or furnishings. The owner shall give written notice  to
the commission of any such adjustment pursuant to this clause; or
  S 7. This act shall take effect immediately; provided that:
  a.  the  amendments  to section 26-511 of chapter 4 of title 26 of the
administrative code of the city of New York made  by  sections  one  and
four  of  this act shall expire on the same date as such law expires and

S. 3364--A                          9

shall not affect the expiration of such law as  provided  under  section
26-520 of such law;
  b.  the  amendments  to  sections  10  and  6  of the emergency tenant
protection act of nineteen seventy-four made by sections two and 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  section 26-405 of the city rent and rehabili-
tation law made by section three of this act shall remain in full  force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision  3  of section 1 of the local emergency housing rent control
act; and
  d. the amendments to section 4 of the emergency housing  rent  control
law  made  by  section  six of this act shall expire on the same date as
such law expires and shall not affect the  expiration  of  such  law  as
provided  in  subdivision  2  of section 1 of chapter 274 of the laws of
1946.

                                 PART C

  Section 1.   Legislative findings and declaration  of  emergency.  The
legislature  hereby finds and declares that the serious public emergency
which led to the enactment of the existing laws  regulating  residential
rents  and  evictions  continues  to  exist; that such laws would better
serve the public interest if certain changes were made thereto,  includ-
ing  extending  to  certain  cities, towns and villages the authority to
provide for the regulation of rents and evictions with regard to housing
accommodations that cease or have ceased to  be  regulated  pursuant  to
article 2 of the private housing finance law, known as the Mitchell-Lama
law,  or  pursuant to project-based section eight contracts entered into
with the federal government.
  The legislature further  recognizes  that  severe  disruption  of  the
rental  housing market has occurred and threatens to be exacerbated as a
result of the abrupt termination of rent and  eviction  regulation  when
buildings  completed  or  substantially  renovated as family units on or
after January first, nineteen hundred seventy-four  exit  the  Mitchell-
Lama  program  or  when  buildings  cease to be subject to project-based
section eight contracts. The situation  had  permitted  speculative  and
profiteering practices and has brought about the loss of vital and irre-
placeable affordable housing for working persons and families.
  The legislature therefore declares that in order to prevent uncertain-
ty,  potential  hardship  and  dislocation  of tenants living in housing
accommodations subject to  government  regulations  as  to  rentals  and
continued  occupancy  as  well as those not subject to such regulations,
the provisions of this act are necessary to protect the  public  health,
safety and general welfare. The necessity in the public interest for the
provisions  hereinafter enacted is hereby declared as a matter of legis-
lative determination.
  S 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti-
tuting the emergency tenant protection act of nineteen  seventy-four  is
amended by adding a new subdivision c to read as follows:
  C.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NOTHING SHALL
PREVENT THE DECLARATION OF AN EMERGENCY PURSUANT  TO  SECTION  THREE  OF
THIS  ACT  FOR  RENTAL  HOUSING  ACCOMMODATIONS  LOCATED IN BUILDINGS OR
STRUCTURES WHICH WERE OWNED BY A COMPANY ESTABLISHED UNDER  ARTICLE  TWO

S. 3364--A                         10

OF  THE  PRIVATE HOUSING FINANCE LAW, OTHER THAN A MUTUAL COMPANY, WHICH
ARE NO LONGER OWNED BY SUCH COMPANY BY REASON OF A VOLUNTARY DISSOLUTION
PURSUANT TO SECTION THIRTY-FIVE OF SUCH LAW OR FOR RENTAL HOUSING ACCOM-
MODATIONS LOCATED IN BUILDINGS OR STRUCTURES DEFINED AS COVERED PROJECTS
PURSUANT TO SECTION 8 OF THE UNITED STATES HOUSING ACT OF NINETEEN THIR-
TY-SEVEN,  AS  AMENDED,  OR  ANY  SUCCESSOR STATUTE, AND ANY REGULATIONS
PROMULGATED THEREUNDER IN WHICH RENTAL HOUSING  ACCOMMODATIONS  RECEIVED
PROJECT-BASED  RENTAL  ASSISTANCE  FROM  THE UNITED STATES DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT PURSUANT TO CONTRACTS WITH THE  OWNERS  OF
SUCH  BUILDINGS  OR  STRUCTURES  WHICH EXPIRED OR WERE TERMINATED.   THE
INITIAL LEGAL REGULATED  RENT  FOR  HOUSING  ACCOMMODATIONS  LOCATED  IN
BUILDINGS  OR  STRUCTURES  THAT  WERE OWNED BY HOUSING COMPANIES OR THAT
WERE COVERED PROJECTS PREVIOUSLY REGULATED  UNDER  THE  PRIVATE  HOUSING
FINANCE  LAW OR UNDER FEDERAL LAW, SHALL BE THE RENT CHARGED TO AND PAID
BY THE TENANT IN OCCUPANCY ONE HUNDRED EIGHTY DAYS PRIOR TO  THE  EFFEC-
TIVE  DATE  OF A CHAPTER OF THE LAWS OF TWO THOUSAND FIFTEEN WHICH ADDED
THIS SUBDIVISION OR, FOR ACCOMMODATIONS VACANT ON SUCH  DATE,  THE  MOST
RECENT  RENT CHARGED TO AND PAID BY A TENANT PRIOR TO SUCH DATE, INCLUD-
ING ANY INCOME-RELATED SURCHARGES, AS ADJUSTED BY ALL APPLICABLE  GUIDE-
LINES INCREASES AND OTHER INCREASES AUTHORIZED BY LAW. THE PROVISIONS OF
SUBDIVISION A OF SECTION NINE OF THIS ACT OR OF SUBDIVISION A OF SECTION
26-513  OF  THE  ADMINISTRATIVE  CODE  OF THE CITY OF NEW YORK SHALL NOT
APPLY TO ANY HOUSING ACCOMMODATION WHICH  BECAME  SUBJECT  TO  THIS  ACT
PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION.
  S  3.  Notwithstanding any provision of law to the contrary, in a city
having a population of one million or  more,  the  New  York  city  rent
stabilization law of nineteen hundred sixty-nine may be amended by local
law  or  ordinance  to provide for the regulation of rents and evictions
and the enforcement of such rent stabilization law with regard to  hous-
ing accommodations made subject to such law by a declaration of emergen-
cy made pursuant to this act.
  S 4. This act shall take effect immediately and shall apply to housing
accommodations  located  in  buildings  or  structures  owned by housing
companies that dissolved on, before or after such date  and  to  housing
accommodations in buildings or structures that were covered projects and
had  contracts for rental assistance that expired or were terminated on,
before or after such date; provided that the amendments to section 5  of
the  emergency  tenant  protection  act of nineteen seventy-four made by
section two 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.

                                 PART D

  Section 1. Subdivision 5 of section 1 of chapter 21  of  the  laws  of
1962,  constituting  the  local  emergency  housing rent control act, as
amended by chapter 82 of the laws of 2003 and the closing  paragraph  as
amended  by  chapter  422  of  the  laws  of 2010, is amended to read as
follows:
  5. Authority for local rent control legislation.  Each city  having  a
population  of one million or more, acting through its local legislative
body, may adopt and amend local laws or ordinances  in  respect  of  the
establishment  or  designation  of  a  city housing rent agency. When it
deems such action to be desirable or necessitated by local conditions in
order to carry out the purposes of this section, such  city,  except  as
hereinafter  provided, acting through its local legislative body and not

S. 3364--A                         11

otherwise, may adopt and amend local laws or ordinances  in  respect  of
the  regulation  and  control  of  residential  rents, including but not
limited to provision for the establishment  and  adjustment  of  maximum
rents,  the  classification of housing accommodations, the regulation of
evictions, and the enforcement of such local  laws  or  ordinances.  The
validity  of  any  such local laws or ordinances, and the rules or regu-
lations promulgated in accordance therewith, shall not  be  affected  by
and need not be consistent with the state emergency housing rent control
law  or  with rules and regulations of the state division of housing and
community renewal.
  Notwithstanding any local law  or  ordinance,  housing  accommodations
which became vacant on or after July first, nineteen hundred seventy-one
or  which  hereafter become vacant shall be subject to the provisions of
the emergency tenant protection act of nineteen seventy-four,  provided,
however,  that  this  provision shall not apply or become effective with
respect to housing accommodations which, by local law or ordinance,  are
made  directly  subject to regulation and control by a city housing rent
agency and such agency determines or finds  that  the  housing  accommo-
dations  became  vacant because the landlord or any person acting on his
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  interfered  with  or  disturbed  or  was
intended  to  interfere  with  or  disturb the comfort, repose, peace or
quiet of the tenant in his use or  occupancy  of  the  housing  accommo-
dations.  The  removal  of any housing accommodation from regulation and
control of rents pursuant to the vacancy exemption provided for in  this
paragraph shall not constitute or operate as a ground for the subjection
to more stringent regulation and control of any housing accommodation in
such  property  or  in  any  other  property owned by the same landlord,
notwithstanding any prior agreement to the contrary by the landlord. The
vacancy exemption provided for in this paragraph shall  not  arise  with
respect  to  any  rented plot or parcel of land otherwise subject to the
provisions of this act, by reason of a transfer of title and  possession
occurring  on  or  after  July  first, nineteen hundred seventy-one of a
dwelling located on such plot or parcel and owned by  the  tenant  where
such  transfer  of  title  and  possession  is  made  to a member of the
tenant's immediate family provided that the member of the tenant's imme-
diate family occupies the dwelling with the tenant prior to the transfer
of title and possession for a continuous period of two years.
  The term "immediate family" shall include a husband, wife, son, daugh-
ter, stepson, stepdaughter, father, mother, father-in-law or  mother-in-
law.
  [Notwithstanding  the foregoing, no local law or ordinance shall here-
after provide for the regulation and control of  residential  rents  and
eviction in respect of any housing accommodations which are (1) present-
ly exempt from such regulation and control or (2) hereafter decontrolled
either by operation of law or by a city housing rent agency, by order or
otherwise. No housing accommodations presently subject to regulation and
control  pursuant  to  local laws or ordinances adopted or amended under
authority of this subdivision shall hereafter be by local law  or  ordi-
nance  or  by rule or regulation which has not been theretofore approved
by the state commissioner of housing and community renewal subjected  to
more  stringent or restrictive provisions of regulation and control than
those presently in effect.
  Notwithstanding any other provision of law, on and after the effective
date of this paragraph, a city having a population  of  one  million  or

S. 3364--A                         12

more  shall not, either through its local legislative body or otherwise,
adopt or amend local laws or ordinances with respect to  the  regulation
and control of residential rents and eviction, including but not limited
to  provision for the establishment and adjustment of rents, the classi-
fication of housing accommodations, the regulation of evictions, and the
enforcement of such local laws or ordinances, or otherwise adopt laws or
ordinances pursuant to the provisions of this act, the emergency  tenant
protection  act  of  nineteen  seventy-four,  the New York city rent and
rehabilitation law or the New York city rent stabilization  law,  except
to  the extent that such city for the purpose of reviewing the continued
need for the existing regulation and control of residential rents or  to
remove  a  classification  of housing accommodation from such regulation
and control adopts or amends local laws or ordinances pursuant to subdi-
vision three of section one of this act, section three of the  emergency
tenant  protection  act  of nineteen seventy-four, section 26-415 of the
New York city rent and  rehabilitation  law,  and  sections  26-502  and
26-520  of  the New York city rent stabilization law of nineteen hundred
sixty-nine.]
  Notwithstanding any provision of this act to the contrary,  any  local
law  adopted pursuant to this act shall provide that notwithstanding any
provision of such local law in the case where all tenants occupying  the
housing  accommodation  on  the  effective  date  of this paragraph have
vacated the housing accommodation and a family member of  such  vacating
tenant  or  tenants  is  entitled to and continues to occupy the housing
accommodation subject to the protections of such act, if  such  accommo-
dation  continues  to  be  subject  to such act after such family member
vacates, on the occurrence of such vacancy the maximum collectable  rent
shall  be  increased  by a sum equal to the allowance then in effect for
vacancy leases for housing accommodations covered by the rent stabiliza-
tion law of nineteen hundred sixty-nine, including the amount allowed by
paragraph (5-a) of subdivision c of section 26-511  of  such  law.  This
increase  shall  be  in  addition to any other increases provided for in
this act and shall be applicable in like manner to  each  second  subse-
quent succession.
  Notwithstanding the foregoing, no local law or ordinance shall subject
to  such  regulation  and control any housing accommodation which is not
occupied by the tenant in possession as his or  her  primary  residence;
provided,  however,  that such housing accommodation not occupied by the
tenant in possession as his or her primary residence shall  continue  to
be  subject  to regulation and control as provided for herein unless the
city housing rent agency issues an  order  decontrolling  such  accommo-
dation, which the agency shall do upon application by the landlord when-
ever  it  is  established  by  any facts and circumstances which, in the
judgment of the agency, may have a bearing upon the  question  of  resi-
dence,  that  the  tenant maintains his or her primary residence at some
place other than at such housing accommodation.   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.
  S 2. This act shall take effect immediately; provided, however, that:
  a.  the amendments to subdivision 5 of section 1 of chapter 21 of  the
laws  of 1962 made by section one 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

S. 3364--A                         13

subdivision 3 of section 1 of the local emergency housing  rent  control
act; and
  b. the amendment to the second undesignated paragraph of subdivision 5
of  section  1  of chapter 21 of the laws of 1962 made by section one of
this act shall not affect the expiration of such paragraph and shall  be
deemed to expire therewith.

                                 PART E

  Section  1. 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] 2017; 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,
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] 2017.
  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] 2017.
  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] 2017;
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

S. 3364--A                         14

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:
  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] 2017; 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] 2017;
  S 7. This act shall take effect immediately.

                                 PART F

  Section  1. Paragraph (c) of subdivision 4 of section 14 of the public
housing law, as added by chapter 116 of the laws of 1997, is amended  to
read as follows:
  (c)  that  for  the  purposes of such regulations: (i) "family member"
shall be defined as a husband, wife, son, daughter, stepson, stepdaught-
er, father, mother,  stepfather,  stepmother,  brother,  sister,  UNCLE,
AUNT,  NEPHEW, NIECE, grandfather, grandmother, grandson, granddaughter,
daughter-in-law,  son-in-law,  mother-in-law  or  father-in-law  of  the
tenant;  or  any  other  person  residing with the tenant in the housing
accommodation as a primary residence who can prove emotional and  finan-
cial commitment, and interdependence between such person and the tenant.
Although  no single factor shall be solely determinative, evidence which
is to be considered in determining whether such emotional and  financial
commitment and interdependence existed, may include, without limitation,
such  factors  as listed below.   In no event would evidence of a sexual
relationship between such persons be required or considered.
  (A) longevity of the relationship;
  (B) sharing of or relying upon each other for payment of household  or
family expenses, or other common necessities of life;

S. 3364--A                         15

  (C)  intermingling  of  finances  as evidenced by, among other things,
joint ownership of bank accounts, personal  and  real  property,  credit
cards,  loan  obligations,  sharing  a  household budget for purposes of
receiving government benefits, or such other factors as  may  be  deter-
mined by regulation;
  (D)  engaging  in  family-type  activities by jointly attending family
functions, holidays and celebrations,  social  and  recreational  activ-
ities, or such other factors as may be determined by regulation;
  (E) formalizing of legal obligations, intentions, and responsibilities
to  each  other  by  such  means as executing wills naming each other as
executor or beneficiary, conferring upon each other a power of  attorney
or  authority to make health care decisions each for the other, entering
into a personal relationship contract,  making  a  domestic  partnership
declaration, or serving as a representative payee for purposes of public
benefits, or such other factors as may be determined by regulation;
  (F)  holding themselves out as family members to other family members,
friends, members of the community or religious institutions, or  society
in general, through their words or actions;
  (G)  regularly  performing  family  functions, such as caring for each
other or each other's extended family  members,  or  relying  upon  each
other for daily family services;
  (H)  engaging  in  any  other pattern of behavior, agreement, or other
action which evidences the intention of creating a long-term, emotional-
ly-committed relationship.
  (ii) a "senior citizen" is defined as a person who is sixty-two  years
of age or older;
  (iii) a "disabled person" is defined as a person who 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 substantially limit one or more of such  person's  major  life
activities.
  S 2. Subdivision m of section 26-403 of the administrative code of the
city of New York is amended to read as follows:
  m.  "Tenant."  A tenant, subtenant, lessee, sublessee, or other person
entitled to the possession or to the use or  occupancy  of  any  housing
accommodation.  THE  TERM  TENANT  SHALL  BE  DEEMED  TO INCLUDE A CHILD
(REGARDLESS OF AGE) WHO HAS RESIDED WITH HIS OR HER PARENT FOR TWO YEARS
OR MORE IN A HOUSING ACCOMMODATION SUBJECT TO  THE  PROVISIONS  OF  THIS
CHAPTER AND OF WHICH SUCH PARENT IS A TENANT.
  S  3.  The  administrative  code of the city of New York is amended by
adding a new section 26-504.4 to read as follows:
  S 26-504.4 TENANT; DEFINITION. FOR THE PURPOSES OF THIS  CHAPTER,  THE
TERM  TENANT  SHALL BE DEEMED TO INCLUDE A CHILD (REGARDLESS OF AGE) WHO
HAS RESIDED WITH HIS OR HER PARENT FOR TWO YEARS OR MORE  IN  A  HOUSING
ACCOMMODATION  SUBJECT  TO  THE  PROVISIONS OF THIS CHAPTER AND OF WHICH
SUCH PARENT IS A TENANT.
  S 4. Section 14 of section 4 of chapter  576  of  the  laws  of  1974,
constituting  the  emergency  tenant protection act of nineteen seventy-
four, is renumbered section 15 and a new section 14 is added to read  as
follows:
  S  14.    TENANT;  DEFINITION.  FOR THE PURPOSES OF THIS ACT, THE TERM
TENANT SHALL BE DEEMED TO INCLUDE A CHILD (REGARDLESS OF  AGE)  WHO  HAS
RESIDED WITH HIS OR HER PARENT FOR TWO YEARS OR MORE IN A HOUSING ACCOM-

S. 3364--A                         16

MODATION  SUBJECT TO THE PROVISIONS OF THIS ACT AND OF WHICH SUCH PARENT
IS A TENANT.
  S  5. This act shall take effect immediately, provided that the amend-
ment to section 26-403 of the city rent and rehabilitation law  made  by
section  two  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  emergency  housing  rent  control  act  and
provided  further that section 26-504.4 of the rent stabilization law of
nineteen hundred sixty-nine, as added by  section  three  of  this  act,
shall  expire  on the same date as such law expires and shall not affect
the expiration of such law as provided under section 26-520 of such law,
as amended, and provided further that section 15 of the emergency tenant
protection act of nineteen seventy-four, as added  by  section  four  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, as amended.

                                 PART G

  Section 1. Legislative findings  and  declaration  of  emergency.  The
legislature  hereby finds and declares that the serious public emergency
which led to the enactment of the existing laws  regulating  residential
rents  and  evictions  continues  to  exist; that such laws would better
serve the public interest if certain changes were made thereto,  includ-
ing  the  continued  regulation  of  certain housing accommodations that
become vacant and the reinstatement of  regulation  of  certain  housing
accommodations that have been deregulated upon vacancy.
  The  legislature  further  recognizes  that  severe  disruption of the
rental housing market has occurred and threatens to be exacerbated as  a
result  of  the present state of the law in relation to the deregulation
of housing accommodations upon  vacancy.  The  situation  has  permitted
speculative and profiteering practices and has brought about the loss of
vital and irreplaceable affordable housing for working persons and fami-
lies.
  The legislature therefore declares that in order to prevent uncertain-
ty,  potential  hardship  and  dislocation  of tenants living in housing
accommodations subject to  government  regulations  as  to  rentals  and
continued occupancy as well as those not subject to such regulation, the
provisions of this act are necessary to protect the public health, safe-
ty  and  general  welfare.  The necessity in the public interest for the
provisions hereinafter enacted is hereby declared as a matter of  legis-
lative determination.
  S 2. 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 3. 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 4. 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  5.  Section  26-504.2 of the administrative code of the city of New
York is REPEALED.
  S 6. 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

S. 3364--A                         17

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
collectible  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 regulation 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  7.  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.]
  S  8.  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 9. This act shall take effect immediately; provided, however, that:

S. 3364--A                         18

  (a) the amendments to section 26-511 of chapter 4 of title 26  of  the
administrative  code  of  the  city of New York made by section seven of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided under  section  26-520  of
such law; and
  (b)  the amendments to subdivision (a-2) of section 10 of section 4 of
the emergency tenant protection act of  nineteen  seventy-four  made  by
section  eight  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.

                                 PART H

  Section 1. 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 2. 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
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

S. 3364--A                         19

month, such housing accommodation shall be excluded from the  provisions
of this law pursuant to section 26-504.2 of this chapter.]
  S  3.  This act shall take effect immediately; provided, however, that
the amendments to section 10 of the emergency tenant protection  act  of
nineteen  seventy-four  made  by section one of this act shall expire on
the same date as such act expires and shall not affect the expiration of
such act as provided in section 17 of chapter 576 of the laws  of  1974;
and provided, further, that the amendments to section 26-511 of the rent
stabilization  law of nineteen hundred sixty-nine made by section two of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided under  section  26-520  of
such law.

                                 PART I

  Section  1.  Paragraph  6-a  of subdivision c of section 26-511 of the
administrative 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
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

S. 3364--A                         20

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 2. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
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
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

S. 3364--A                         21

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 3. This act shall take effect immediately; provided that:
  a.  the  amendments  to section 26-511 of chapter 4 of title 26 of the
administrative code of the city of New York made by section 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 under  section  26-520  of
such law; and
  b.  the amendments to section 6 of the emergency tenant protection act
of nineteen seventy-four made by section two 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.

                                 PART J

  Section 1. 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 FINDS THAT SUCH IMPROVEMENTS  ARE  DEEMED
DEPRECIABLE  UNDER  THE  INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE
REQUIRED FOR THE OPERATION, PRESERVATION OR MAINTENANCE  OF  THE  STRUC-
TURE.  THE  INCREASE  PERMITTED  FOR  SUCH  CAPITAL IMPROVEMENT 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 SURCHARGE  ALLOCABLE  TO  EACH
APARTMENT  SHALL  BE  AN  AMOUNT  EQUAL  TO  THE COST OF THE IMPROVEMENT

S. 3364--A                         22

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
EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED  SIX  PERCENT
LIMITATION DID NOT APPLY; or
  S 2. Paragraph 1 of subdivision g of section 26-405 of the administra-
tive  code  of  the city of New York is amended by adding a new subpara-
graph (p) to read as follows:
  (P) NOTWITHSTANDING SUBPARAGRAPH (G) OR (K) OF THIS  PARAGRAPH,  THERE
SHALL  BE  NO  ADJUSTMENT  FOR  ANY MAJOR CAPITAL IMPROVEMENT OR FOR ANY
OTHER EXPENDITURES TO IMPROVE, RESTORE OR  PRESERVE  THE  QUALITY  OF  A
STRUCTURE IF SUCH MAJOR CAPITAL IMPROVEMENT OR SUCH OTHER EXPENDITURE IS
FUNDED  IN  ANY  PART  FROM MONEYS PROVIDED BY THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY.
  S 3. 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
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  4.    Section  26-405 of the administrative code of the city of New
York is amended by adding a new subdivision n to read as follows:
  N. (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL BE APPROVED  BY
THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL UNLESS THE WORK PERFORMED
IS AN ENHANCEMENT OR UPGRADE TO A HOUSING ACCOMMODATION OR SERVICE THER-
EIN; OR IS AN ADDITION  TO  SUCH  HOUSING  ACCOMMODATION  AND  OTHERWISE
ELIGIBLE  ACCORDING  TO  THE PREREQUISITES FOR MAJOR CAPITAL IMPROVEMENT
RENT INCREASES.   ANY REPAIR OR  REPLACEMENT  INTENDED  TO  MAINTAIN  AN
EXISTING  SERVICE  SHALL NOT BE ELIGIBLE FOR A MAJOR CAPITAL IMPROVEMENT
RENT INCREASE.
  (2) 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

S. 3364--A                         23

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.
  S 5. Paragraph 6 of subdivision c of section 26-511 of the administra-
tive 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 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 manage-
ment 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  nine-
teen  hundred  sixty-eight  through nineteen hundred seventy, or for the
first three years of operation if the building was completed since nine-
teen 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  nineteen  hundred  seventy
despite  diligent  efforts to obtain same from predecessors in title and
further provided that the new owner can provide financial data  covering
a  minimum  of  six  years under his or her continuous and uninterrupted
operation of the building to meet the three year to three  year  compar-
ative  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  deter-
mined  by  the  commissioner,  (iii) actual annual mortgage debt service
(interest and amortization) on its indebtedness to  a  lending  institu-

S. 3364--A                         24

tion,  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;
  S 6. Subdivision c of section 26-511 of the administrative code of the
city of New York is amended by adding three new paragraphs 6-b, 6-c, and
6-d 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 CRITERIA
SHALL PROVIDE THAT:
  (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL BE APPROVED BY THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL UNLESS THE WORK  PERFORMED  IS
AN ENHANCEMENT OR UPGRADE TO A HOUSING ACCOMMODATION OR SERVICE THEREIN;
OR  IS  AN ADDITION TO SUCH HOUSING ACCOMMODATION AND OTHERWISE ELIGIBLE
ACCORDING TO  THE  PREREQUISITES  FOR  MAJOR  CAPITAL  IMPROVEMENT  RENT
INCREASES.    ANY REPAIR OR REPLACEMENT INTENDED TO MAINTAIN AN EXISTING
SERVICE SHALL NOT BE ELIGIBLE  FOR  A  MAJOR  CAPITAL  IMPROVEMENT  RENT
INCREASE.
  (2)  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

S. 3364--A                         25

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
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 OF THIS SUBDIVISION  SHALL  CEASE
WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT.
  S 7. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
576  of  the  laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as amended by 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  FINDS  THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS  ARE  REQUIRED  FOR  THE
OPERATION,  PRESERVATION  OR MAINTENANCE OF THE STRUCTURE.  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 RENT
ADJUSTMENT AUTHORIZED BY THE RENT GUIDELINES BOARD UNDER THIS  ACT.  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 AFOREMEN-
TIONED SIX PERCENT LIMITATION DID NOT APPLY, or

S. 3364--A                         26

  S 8. 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 d-1 to read as follows:
  D-1.  (1)  NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL BE APPROVED
BY THE DIVISION  OF  HOUSING  AND  COMMUNITY  RENEWAL  UNLESS  THE  WORK
PERFORMED  IS  AN  ENHANCEMENT  OR UPGRADE TO A HOUSING ACCOMMODATION OR
SERVICE THEREIN; OR IS AN ADDITION TO  SUCH  HOUSING  ACCOMMODATION  AND
OTHERWISE  ELIGIBLE  ACCORDING  TO  THE  PREREQUISITES FOR MAJOR CAPITAL
IMPROVEMENT RENT INCREASES.  ANY REPAIR OR REPLACEMENT INTENDED TO MAIN-
TAIN AN EXISTING SERVICE SHALL NOT  BE  ELIGIBLE  FOR  A  MAJOR  CAPITAL
IMPROVEMENT RENT INCREASE.
  (2)  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.
  S 9. 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) NOTWITHSTANDING PARAGRAPH THREE OF THIS SUBDIVISION THERE SHALL BE
NO  ADJUSTMENT FOR ANY MAJOR CAPITAL IMPROVEMENT FUNDED IN ANY PART FROM
MONEYS PROVIDED BY THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT
AUTHORITY.
  S  10.  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

S. 3364--A                         27

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
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.
The  permanent  increase  in  the  maximum rent for the affected housing
accommodation shall be one-fortieth, in the  case  of  a  building  with
thirty-five  or  fewer  housing  accommodations, or one-sixtieth, in the

S. 3364--A                         28

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, of the total cost incurred by the  land-
lord  in  providing  such  modification  or  increase in dwelling space,
services, furniture, furnishings or equipment,  including  the  cost  of
installation,  but  excluding  finance  charges provided further that an
owner who is entitled to a rent increase pursuant to this  clause  shall
not  be  entitled to a further rent increase based upon the installation
of similar equipment, or new furniture or furnishings within the  useful
life  of  such new equipment, or new furniture or furnishings. The owner
shall give written notice to  the  commission  of  any  such  adjustment
pursuant to this clause; or (6) there has been, since March first, nine-
teen  hundred  fifty,  an  increase  in  the rental value of the housing
accommodations as a result of a substantial rehabilitation of the build-
ing 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 COMMIS-
SIONER  FINDS  THAT  SUCH  IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER THE
INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE  OPERA-
TION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE PERMIT-
TED  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 ALLO-
CABLE 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 APART-
MENT 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; 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, howev-
er, that no adjustment granted hereunder shall exceed fifteen per centum
unless the tenants have agreed to a higher percentage  of  increase,  as
herein  provided;  or  (9)  there  has been, since March first, nineteen
hundred fifty, a subletting without written consent from the landlord or
an increase in the number of adult 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
rents generally prevailing in the same area  for  substantially  similar
housing accommodations.
  S 11. This act shall take effect immediately; provided that:

S. 3364--A                         29

  a.  the  amendments  to  section 26-405 of the city rent and rehabili-
tation law made by sections one, two, three and four 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;
  b. the amendments to section 26-511 of the rent stabilization  law  of
nineteen  hundred  sixty-nine  made by sections five and six of this act
shall expire on the same date as such law expires and shall  not  affect
the expiration of such law as provided under section 26-520 of such law,
as from time to time amended;
  c.  the  amendment to section 6 of the emergency tenant protection act
of nineteen seventy-four made by sections seven, eight and nine 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, as from time to time amended; and
  d.  the  amendment  to section 4 of the emergency housing rent control
law made by section ten 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.

                                 PART K

  Section  1.  Paragraph  5  of  subdivision  a of section 26-405 of the
administrative 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

S. 3364--A                         30

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  2.  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  3.  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 4. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a  law; provided that the amendments to section
26-405 of the city rent and rehabilitation law made by  section  one  of
this  act  shall  remain  in  full  force and effect only as long as the
public emergency requiring the regulation  and  control  of  residential
rents and evictions continues, as provided in subdivision 3 of section 1
of  the  local emergency housing rent control act; and provided that the
amendments to section 4 of the emergency housing rent control  law  made
by  section  three of this act shall expire on the same date as such law
expires and shall not affect the expiration of such law as  provided  in
subdivision 2 of section 1 of chapter 274 of the laws of 1946.

                                 PART L

  Section  1. The administrative code of the city of New York is amended
by adding a new section 26-416 to read as follows:
  S 26-416 SURCHARGES FOR TENANT-INSTALLED APPLIANCES. THE IMPOSITION OF
ANY SURCHARGE FOR THE INSTALLATION OR USE OF A  TENANT-INSTALLED  APPLI-
ANCE IS PROHIBITED WHERE THE TENANT PAYS FOR ELECTRIC UTILITY SERVICE.
  S  2.  This  act  shall take effect immediately; provided that section
26-416 of the city rent and rehabilitation law as added by  section  one
of  this  act  shall remain in full force and effect only as long as the
public emergency requiring the regulation  and  control  of  residential
rents and evictions continues, as provided in subdivision 3 of section 1
of the local emergency housing rent control act.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment  shall have been rendered.  It is  hereby declared to be the intent
of the legislature that this act would have been enacted  even  if  such
invalid provisions had not been included herein.
  S  4.  This  act shall take effect immediately provided, however, that
the applicable effective dates of Parts A through L of this act shall be
as specifically set forth in the last section of such Parts.