Senate Bill S3704

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

                                  3704

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 17, 2015
                               ___________

Introduced  by  Sens.  ESPAILLAT,  HOYLMAN,  KRUEGER  --  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  the  establishment  of
  rent  adjustments;  and  to  repeal  paragraph 5-a of subdivision c of
  section 25-511 of the administrative code of the city of New York  and
  subdivision (a-1) of section 10 of the emergency tenant protection act
  of nineteen seventy-four, relating to vacancy leases

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "rent board reform act of 2015".
  S  2.  Legislative  findings  and  declaration. The legislature hereby
finds and declares that the public emergency which led to the  enactment
of  the  laws  regulating  residential  rents and evictions continues to
exist, that such emergency continues to necessitate the intervention  of
state and local governments in order to prevent speculative, unwarranted
and  abnormal  increases  in rents and unjust and arbitrary evictions so
long as such emergency exists, without further periodic authorization by
the legislature; that because of the shortage of decent, safe and avail-
able housing, market forces do not operate properly, and it is necessary
therefore to prevent the exaction of unjust or  unreasonable  rents  and
rental  agreements, and to forestall eviction and other disruptive prac-
tices tending to produce threats to the public health, safety and gener-
al welfare; that the general welfare depends in part on the  maintenance
and  preservation  of the existing stock of privately owned rental hous-
ing, and to assure such maintenance and preservation, responsible owners
should be encouraged to own, invest in and maintain such housing without
exacting unwarranted rent  increases  or  rental  agreements;  that  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08847-01-5
              

S. 3704                             2

existing  laws  regulating  residential rents and evictions would better
promote equity and serve the public interest if certain amendments  were
made  thereto, including the restructuring of the system of promulgating
general  rent adjustments, repeal of the statutory vacancy bonus and the
substitution of statutory tenancies for the current renewal lease system
for rent stabilized housing accommodations.
  The legislature therefore declares that 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 legislative determination.
  S 3. Paragraph 1 of subdivision b of section 26-509 of the administra-
tive code of the city of New York is amended and a new paragraph  10  is
added to read as follows:
  (1)  No increase in the legal regulated rent shall be collectible from
a tenant to whom there has been issued a currently valid rent  exemption
order pursuant to this subdivision, except as provided in such order, if
such  increase  is a lawful increase in the monthly legal regulated rent
over the rent legally payable on the eligibility date which is  provided
under  a  two  year  lease, or under such other term as regards dwelling
units subject to the hotel stabilization provisions of this chapter, for
an increase in rent:
  (i) pursuant to an order of the New York city rent [guidelines] board,
or
  (ii) based upon an owner hardship rent increase order  issued  by  the
state division of housing and community renewal.
  (10)  NOTWITHSTANDING ANY PROVISIONS OF PARAGRAPHS ONE AND SIX OF THIS
SUBDIVISION TO THE  CONTRARY,  EFFECTIVE  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN,  A  TWO  YEAR  RENEWAL  LEASE SHALL NOT BE A PREREQUISITE FOR A
TENANT TO BE ELIGIBLE FOR A RENT EXEMPTION UNDER  THIS  SUBDIVISION  WHO
OTHERWISE  QUALIFIES  FOR  SUCH  RENT  EXEMPTION. A RENT EXEMPTION ORDER
SHALL NO LONGER CONTAIN A PROVISION GIVING NOTICE  THAT  A  TENANT  MUST
ENTER INTO A TWO YEAR RENEWAL LEASE FOR CONTINUED ELIGIBILITY FOR A RENT
EXEMPTION UNDER THIS SUBDIVISION.
  S 4. Section 26-510 of the administrative code of the city of New York
is amended to read as follows:
  S  26-510  Rent  [guidelines]  board. a. There shall be a rent [guide-
lines] board to consist of nine members, appointed by the mayor UPON THE
ADVICE AND CONSENT OF THE CITY COUNCIL.   [Two] THREE members  shall  be
representative of tenants, [two] THREE shall be representative of owners
of  property,  and  [five] THREE shall be public members [each of whom].
EACH OF THE PUBLIC MEMBERS shall have had at least five years experience
in [either] PUBLIC SERVICE, PHILANTHROPY, SOCIAL SERVICES,  URBAN  PLAN-
NING,  ARCHITECTURE, SOCIAL SCIENCES, SERVICE WITH NOT-FOR-PROFIT ORGAN-
IZATIONS, finance, economics or housing.  One  public  member  shall  be
designated  by the mayor UPON THE ADVICE AND CONSENT OF THE CITY COUNCIL
to serve as [chairman] CHAIR and shall hold no other public  office.  No
[member, officer or] employee of THE CITY OF NEW YORK OR OF any [munici-
pal  rent regulation] MAYORAL OR NON-MAYORAL agency THEREOF or the state
division of housing and community renewal and  no  person  who  owns  or
manages  real  estate  covered by THE EMERGENCY TENANT PROTECTION ACT OF
NINETEEN SEVENTY-FOUR OR this law or [who is an officer of any owner  or
tenant  organization]  THE  CITY RENT AND REHABILITATION LAW OR WHO OWNS
MORE THAN TWO RENTAL HOUSING ACCOMMODATIONS NOT COVERED BY THE EMERGENCY
TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW  shall  serve
on  [a]  THE  rent  [guidelines]  board.  [One public member, one member
representative of tenants and one member representative of owners  shall

S. 3704                             3

serve for a term ending two years from January first next succeeding the
date  of their appointment; one public member, one member representative
of tenants and one member representative of owners shall serve for terms
ending  three  years  from the January first next succeeding the date of
their appointment and two public members shall serve  for  terms  ending
four  years  from  January  first  next  succeeding  the  dates of their
appointment. The chairman shall serve at the pleasure of the mayor.] ALL
MEMBERS OF THE BOARD SHALL SERVE TWO YEAR TERMS, BEGINNING THE LATER  OF
THE DATE OF APPOINTMENT OR THE EXPIRATION OF THE TERM OF THE MEMBER WHOM
THE  APPOINTEE  IS SUCCEEDING. Thereafter, all members shall continue in
office until their successors have been appointed and  qualified.    The
mayor,  UPON  THE ADVICE AND CONSENT OF THE CITY COUNCIL, shall fill any
vacancy which may occur by reason of death, resignation or otherwise  in
a  manner  consistent with the [original appointment] PROVISIONS OF THIS
SUBDIVISION. A member may be removed by the [mayor] COUNCIL  for  cause,
but  not  without an opportunity to be heard in person or by counsel, in
his or her defense, upon not less than ten days notice. A  SUCCESSOR  TO
SUCH MEMBER SHALL BE APPOINTED IN ACCORDANCE WITH THE PROVISIONS OF THIS
SUBDIVISION  TO  SERVE  THE  BALANCE  OF  THE TERM OF THE MEMBER WHO WAS
REMOVED.
  b. The rent [guidelines] board shall  establish  annually  [guidelines
for]  rent  adjustments,  and  in  determining whether rents for housing
accommodations subject to the emergency tenant protection act  of  nine-
teen  seventy-four  or  this law shall be adjusted shall consider, among
other things (1) THE STATE OF THE RENTAL REAL ESTATE MARKET AND  SUBMAR-
KETS WITHIN THE CITY OF NEW YORK, INCLUDING THE AVAILABILITY OF AFFORDA-
BLE, HABITABLE RENTAL HOUSING ACCOMMODATIONS; (2) the economic condition
of  the  residential real estate industry in the [affected area] CITY OF
NEW YORK including CHANGES IN THE VALUE OF RESIDENTIAL REAL ESTATE,  THE
PROFITABILITY  OF  OWNERSHIP  OF  RENTAL HOUSING AND such factors as the
prevailing and projected (i) INCREASES OR DECREASES IN RENTS  AND  GROSS
RENTAL  INCOME,  INCLUDING  INCOME FROM OTHER THAN RESIDENTIAL RENTS, AS
WELL AS THE IMPUTED RENTAL VALUE FOR APARTMENTS OCCUPIED  BY  OWNERS  OR
MEMBERS OR THEIR FAMILIES OR ASSOCIATES OF OWNERS, FOR BUILDINGS SUBJECT
TO  THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS
LAW, (II) INCREASES OR DECREASES IN OPERATION AND MAINTENANCE  COSTS  OF
BUILDINGS  SUBJECT  TO  THE  EMERGENCY TENANT PROTECTION ACT OF NINETEEN
SEVENTY-FOUR OR THIS LAW  OR  THE  CITY  RENT  AND  REHABILITATION  LAW,
INCLUDING  real  estate  taxes [and], sewer and water rates, [(ii) gross
operating maintenance costs (including] insurance rates,  ADMINISTRATIVE
COSTS, governmental fees, [cost of] fuel, UTILITIES, and labor [costs)],
(iii)  costs and availability of financing (including effective rates of
interest) AND COSTS, AVAILABILITY AND PROFITABILITY OF REFINANCING, (iv)
ECONOMIC BENEFITS, OTHER THAN RENTAL INCOME, DERIVED FROM OWNERSHIP  AND
UPGRADING  OF  RENTAL PROPERTY, (V) RETURNS ON CAPITAL PLACED AT RISK BY
OWNERS, (VI) over-all supply  of  housing  accommodations  and  over-all
vacancy  rates,  [(2)]  (VII)  INCREASES  OR  DECREASES IN NET OPERATING
INCOME OF BUILDINGS SUBJECT TO THE EMERGENCY TENANT  PROTECTION  ACT  OF
NINETEEN  SEVENTY-FOUR  OR  THIS LAW OR THE CITY RENT AND REHABILITATION
LAW, (3) relevant data from the current and  projected  cost  of  living
indices  for  the affected area, [(3)] AND (4) such other data as may be
made available to it. NET OPERATING INCOME SHALL MEAN THE PERCENTAGE  OF
EACH  DOLLAR OF GROSS RENTAL INCOME REMAINING AFTER PAYMENT OF ALL COSTS
OF OPERATION AND MAINTENANCE. DEBT SERVICE  PAYMENTS,  CAPITAL  EXPENDI-
TURES AND DEPRECIATION SHALL NOT BE CONSIDERED TO BE OPERATION AND MAIN-
TENANCE  COSTS,  AND  THE  RENT  BOARD  SHALL  NOT CONSIDER DEBT SERVICE

S. 3704                             4

PAYMENTS, CAPITAL EXPENDITURES OR  DEPRECIATION  IN  DETERMINING  ANNUAL
RENT  ADJUSTMENTS.  THE  RENT  BOARD SHALL NOT CONSIDER A PRICE INDEX OF
OPERATING COSTS. IN CALCULATING LABOR AND ADMINISTRATIVE COSTS, THE RENT
BOARD  SHALL CONSIDER THE FEASIBILITY OF IMPUTING A VALUE TO THE ACTUAL,
VERIFIABLE UNSALARIED LABOR AND ADMINISTRATIVE TASKS PERFORMED BY BUILD-
ING OWNERS OR MEMBERS OF THEIR IMMEDIATE FAMILY WHO RESIDE WITH THEM  IN
A  HOUSING  ACCOMMODATION  IN A BUILDING SUBJECT TO THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY RENT AND
REHABILITATION LAW WITHIN THE CITY OF NEW YORK.  IF THE INCLUSION OF THE
VALUE OF SUCH LABOR AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE  BY  THE
BOARD,  IT  SHALL  BE  INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN.
ALL OWNERS OF HOUSING ACCOMMODATIONS WITHIN THE CITY OF NEW YORK SUBJECT
TO THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR  THIS
LAW OR THE CITY RENT AND REHABILITATION LAW SHALL ANNUALLY SUBMIT INCOME
AND EXPENDITURE REPORTS TO THE RENT BOARD ON A FORM TO BE PROMULGATED BY
THE  BOARD.  OWNERS  WHO  FAIL  TO SUBMIT SUCH REPORTS TO THE RENT BOARD
SHALL BE BARRED FROM APPLYING FOR OR COLLECTING  ANY  RENT  INCREASE  TO
WHICH  THE  OWNER MIGHT OTHERWISE BE ENTITLED UNDER THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY RENT AND
REHABILITATION LAW DURING THE TWELVE-MONTH  PERIOD  BEGINNING  THE  NEXT
JANUARY  FIRST.  THE RENT BOARD SHALL ANNUALLY REQUIRE A SAMPLE OF LAND-
LORDS SUBJECT TO REGULATION UNDER THE EMERGENCY TENANT PROTECTION ACT OF
NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY  RENT  AND  REHABILITATION
LAW TO MAKE AVAILABLE THEIR BOOKS AND RECORDS REGARDING INCOME, EXPENDI-
TURES,  TAX  BENEFITS  AND FINANCING ARRANGEMENTS FOR EXAMINATION BY THE
BOARD AND THE BOARD SHALL UTILIZE THE RESULTS OF THE  ANALYSIS  OF  SUCH
SAMPLE  AS  ONE  OF THE CRITERIA UPON WHICH ITS FINDINGS ARE BASED. SUCH
SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESENTATIVE OF THE TYPES OF
BUILDINGS, EXCLUDING BUILDINGS THAT HAVE BEEN CONVERTED TO  CO-OPERATIVE
OR CONDOMINIUM STATUS, THAT ARE SUBJECT TO REGULATION UNDER THE EMERGEN-
CY  TENANT  PROTECTION  ACT  OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE
CITY RENT AND REHABILITATION LAW.  ANY INFORMATION PROVIDED BY LANDLORDS
PURSUANT TO THIS SUBDIVISION REGARDING AN INDIVIDUAL BUILDING  OR  GROUP
OF  BUILDINGS  SHALL NOT BE AVAILABLE TO THE PUBLIC UNDER THE FREEDOM OF
INFORMATION LAW AND THE RENT BOARD SHALL SAFEGUARD  THE  CONFIDENTIALITY
OF SUCH INFORMATION PROVIDED HOWEVER THAT THE BOARD SHALL MAKE AVAILABLE
TO  THE  PUBLIC CUMULATIVE AND STATISTICAL RESULTS OF THE REPRESENTATIVE
SAMPLE OF BOOKS AND RECORDS REQUIRED HEREIN.    Not  later  than  [July]
OCTOBER  first of each year, the rent [guidelines] board shall file with
the city clerk AND THE STATE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL
its  findings  for the preceding calendar year, and shall accompany such
findings with a statement of the maximum rate or rates of  rent  adjust-
ment,  if any, for one or more classes of HOUSING accommodations subject
to THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR  this
law  OR  THE CITY RENT AND REHABILITATION LAW, authorized for [leases or
other rental agreements]  VACANCY  LEASES  OR  ANNUAL  RENT  ADJUSTMENTS
commencing  on the next succeeding [October] JANUARY first or within the
twelve months thereafter. Such findings and statement shall be published
in the City Record AND THE RENT BOARD SHALL  DISSEMINATE  SUCH  FINDINGS
AND  STATEMENTS  TO  CITYWIDE AND LOCAL NEWSPAPERS, RADIO AND TELEVISION
STATIONS AND OTHER MEDIA.  THE ADDITIONAL ALLOWANCE, IF ANY, FOR  LEASES
ON  VACANT  APARTMENTS  SHALL  NOT EXCEED FIVE PERCENT. ANY SUCH VACANCY
ALLOWANCE SHALL NOT BE IMPLEMENTED FOR A HOUSING ACCOMMODATION MORE THAN
ONE TIME IN ANY CALENDAR YEAR, NOTWITHSTANDING  THE  NUMBER  OF  VACANCY
LEASES  ENTERED  INTO  FOR  SUCH  HOUSING ACCOMMODATION IN SUCH CALENDAR
YEAR.

S. 3704                             5

  c. Such members shall be compensated  on  a  per  diem  basis  of  one
hundred  FIFTY  dollars per day for no more than twenty-five days a year
except that the [chairman] CHAIR shall be compensated at THE RATE OF one
hundred [twenty-five] SEVENTY-FIVE dollars a day for no more than  fifty
days  a year. The [chairman] CHAIR shall be chief administrative officer
of the rent [guidelines] board and among his or her powers and duties he
or she shall have the authority to  employ,  assign  and  supervise  the
employees  of the rent [guidelines] board and SHALL, WITH THE ADVICE AND
CONSENT OF FOUR OR MORE OTHER MEMBERS OF  THE  RENT  BOARD,  enter  into
contracts  for  consultant services. The department of housing preserva-
tion and development shall cooperate with the  rent  [guidelines]  board
and [may] SHALL assign personnel and perform such services in connection
with  the  duties  of  the  rent [guidelines] board as may reasonably be
required by the [chairman] BOARD.
  d. [Any housing accommodation covered by this law owned by a member in
good standing of an association registered with the department of  hous-
ing  preservation  and  development  pursuant  to section 26-511 of this
chapter which becomes vacant for any reason, other  than  harassment  of
the prior tenant, may be offered for rental at any price notwithstanding
any  guideline  level  established  by  the guidelines board for renewal
leases, provided the offering price does  not  exceed  the  rental  then
authorized  by  the  guidelines  board  for such dwelling unit plus five
percent for a new lease not exceeding  two  years  and  a  further  five
percent for a new lease having a minimum term of three years, until July
first,  nineteen  hundred  seventy,  at  which time the guidelines board
shall determine what the rental for a vacancy shall be.
  e.] With respect to hotel dwelling units, covered by this law pursuant
to section 26-506 of this chapter, the council, after receipt of a study
from the rent [guidelines] board, shall establish a guideline  for  rent
increases,  irrespective  of  the  limitations on amount of increase [in
subdivision d hereof], which guideline shall  apply  only  to  permanent
tenants.  A  permanent tenant is an individual or family who at any time
since May thirty-first, nineteen hundred sixty-eight, or hereafter,  has
continuously  resided  in  the same hotel as a principal residence for a
period of at least six months. On January first, nineteen hundred seven-
ty-one and once annually each  succeeding  year  the  rent  [guidelines]
board  shall  cause  a  review  to  be made of the levels of [fair] rent
[increases] ADJUSTMENTS provided under this subdivision and  may  estab-
lish  different  levels of [fair] rent [increases] ADJUSTMENTS for hotel
dwelling units renting within different rental  ranges  based  upon  the
board's  consideration  of  conditions  in the market for hotel accommo-
dations and the economics of hotel real estate. Any hotel dwelling  unit
which  is  voluntarily  vacated by the tenant thereof may be offered for
rental at the [guideline] RENT  level  [for  vacancies]  ADJUSTED  BY  A
VACANCY ALLOWANCE established by the rent [guidelines] board. If a hotel
dwelling unit becomes vacant because the prior tenant was evicted there-
from,  there  shall be no increase in the rental thereof except for such
increases in rental that the prior tenant would have had to pay  had  he
or she continued in occupancy.
  [g.] E. From September twenty-fifth, nineteen hundred sixty-nine until
the  rate of permissible increase is established by the council pursuant
to subdivision [e] D of this section, there shall not be collected  from
any  permanent  hotel  tenant any rent increase in excess of ten percent
over the rent payable for his or her dwelling unit on May  thirty-first,
nineteen  hundred  sixty-eight, except for hardship increases authorized
by the conciliation and appeals board. Any owner who collects or permits

S. 3704                             6

any rent to be collected in excess of  the  amount  authorized  by  this
subdivision  shall  not be eligible to be a member in good standing of a
hotel industry stabilization association.
  [h.] F. The rent [guidelines] board, prior to the annual adjustment of
the  level  of  [fair]  rents  provided  for under subdivision b of this
section for dwelling units and hotel dwelling units covered by this law,
shall hold a public hearing or hearings for the  purpose  of  collecting
information  relating  to all factors set forth in subdivision b of this
section.  Notice of the date, time,  location  and  summary  of  subject
matter for the public hearing or hearings shall be published in the City
Record  daily for a period of not less than eight days and at least once
in one or more newspapers of general circulation  at  least  eight  days
immediately  preceding  each hearing date, at the expense of the city of
New York, and the hearing shall be open for testimony from any  individ-
ual, group, association or representative thereof who wants to testify.
  [i.]  G.  IN  FURTHERANCE OF ITS RESPONSIBILITIES TO ENFORCE THIS LAW,
THE RENT BOARD SHALL BE EMPOWERED TO ADMINISTER OATHS, ISSUE  SUBPOENAS,
CONDUCT INVESTIGATIONS AND MAKE INSPECTIONS.
  H. Maximum rates of rent adjustment shall not be established more than
once annually for any housing accommodation within the board's jurisdic-
tion.  Once  established, no such rate shall[, within the one-year peri-
od,] be adjusted by any surcharge,  supplementary  adjustment  or  other
modification.  NO RENT ADJUSTMENT SHALL BE ESTABLISHED BASED ON THE RENT
LEVEL   OF  HOUSING  ACCOMMODATIONS  SUBJECT  TO  THE  EMERGENCY  TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY RENT AND
REHABILITATION LAW OR THE NUMBER OF HOUSING ACCOMMODATIONS  IN  AFFECTED
BUILDINGS.
  I.  NO  OWNER  OF ANY HOUSING ACCOMMODATION SUBJECT TO THIS LAW OR THE
NEW YORK CITY RENT AND REHABILITATION LAW MAY IMPOSE OR  COLLECT  DURING
CALENDAR  YEAR TWO THOUSAND FIFTEEN AN ANNUAL RENT ADJUSTMENT AS ADOPTED
PURSUANT TO THE PROVISIONS OF SUBDIVISION B OF  THIS  SECTION  IF  THERE
EXIST  OF  RECORD  WITH  REGARD  TO THE PROPERTY CONTAINING SUCH HOUSING
ACCOMMODATION ON JANUARY FIRST OF SUCH YEAR ANY OUTSTANDING RENT IMPAIR-
ING VIOLATIONS, AS DEFINED BY SECTION THREE HUNDRED TWO-A OF THE  MULTI-
PLE  DWELLING  LAW,  OF RECORD AS OF JULY FIRST, TWO THOUSAND FIFTEEN OR
MORE THAN TWENTY PERCENT OF ALL OTHER VIOLATIONS OF RECORD  AS  OF  JULY
FIRST,  TWO  THOUSAND  FIFTEEN;  OR DURING A SUBSEQUENT CALENDAR YEAR IF
THERE EXIST OF RECORD WITH REGARD TO SUCH PROPERTY ON JANUARY  FIRST  OF
SUCH YEAR ANY OUTSTANDING RENT IMPAIRING VIOLATIONS OF RECORD AS OF JULY
FIRST  OF  THE  PRIOR  YEAR  OR  MORE  THAN  TWENTY PERCENT OF ALL OTHER
VIOLATIONS OF RECORD AS OF JULY FIRST OF THE PRIOR YEAR.
  J. NOTWITHSTANDING ANY PROVISIONS OF THIS LAW TO THE CONTRARY:
  (1) EFFECTIVE ON AND AFTER JANUARY FIRST,  TWO  THOUSAND  SIXTEEN  THE
RENT  ADJUSTMENTS ESTABLISHED PURSUANT TO THIS SECTION SHALL BE APPLICA-
BLE TO VACANCY LEASES WHICH COMMENCE DURING THE CALENDAR YEAR  FOLLOWING
THE YEAR IN WHICH THE ADJUSTMENT IS ESTABLISHED AND UPON EXPIRATION SUCH
VACANCY  LEASES  SHALL  BE  FURTHER  ADJUSTED  BY  THE  RENT ADJUSTMENTS
PROVIDED FOR IN SUBDIVISION F OF SECTION 26-511 OF THIS  CHAPTER  EFFEC-
TIVE THE FIRST DAY OF JANUARY FOLLOWING THE YEAR IN WHICH THE ADJUSTMENT
IS ESTABLISHED.
  (2)  NO  LATER THAN OCTOBER FIRST, TWO THOUSAND FIFTEEN THE RENT BOARD
SHALL ESTABLISH TRANSITIONAL RENT ADJUSTMENTS APPLICABLE TO LEASES WHICH
EXPIRE BETWEEN JANUARY FIRST, TWO THOUSAND SIXTEEN AND DECEMBER  THIRTY-
FIRST,  TWO  THOUSAND SIXTEEN. NO LATER THAN OCTOBER FIRST, TWO THOUSAND
SIXTEEN THE BOARD SHALL ESTABLISH TRANSITIONAL RENT ADJUSTMENTS APPLICA-
BLE TO LEASES WHICH EXPIRE BETWEEN JANUARY FIRST, TWO THOUSAND SEVENTEEN

S. 3704                             7

AND DECEMBER THIRTY-FIRST, TWO  THOUSAND  SEVENTEEN.  SUCH  TRANSITIONAL
ADJUSTMENT  SHALL  BE  A PRO-RATA PORTION OF THE ONE OR TWO YEAR RENEWAL
ADJUSTMENTS.
  S  5. Paragraph 5-a of subdivision c of section 26-511 of the adminis-
trative code of the city of New York is REPEALED.
  S 6. Paragraph 12 of subdivision c of section 26-511 of  the  adminis-
trative  code of the city of New York is amended and a new subdivision f
is added to read as follows:
  (12) permits subletting of units  subject  to  this  law  pursuant  to
section  two hundred twenty-six-b of the real property law provided that
(a) the rental charged to the subtenant does not exceed  the  stabilized
rent  plus  a  ten  percent  surcharge payable to the tenant if the unit
sublet was furnished with the tenant's furniture;  (b)  the  tenant  can
establish  that at all times he or she has maintained the unit as his or
her primary residence and intends to occupy it as such at the expiration
of the sublease; (c) an owner may terminate the tenancy of a tenant  who
sublets  or  assigns  contrary  to  the  terms of this paragraph [but no
action or proceeding based on the non-primary residence of a tenant  may
be  commenced  prior  to  the  expiration date of his or her lease]; (d)
where an apartment is sublet the prime tenant shall retain the right  to
a  [renewal  lease]  STATUTORY  TENANCY  and  the rights and status of a
tenant in occupancy as they relate to conversion to condominium or coop-
erative ownership; (e) where a tenant violates the provisions of subpar-
agraph (a) of this paragraph the subtenant shall be entitled to  damages
of three times the overcharge and may also be awarded attorneys fees and
interest from the date of the overcharge at the rate of interest payable
on  a judgment pursuant to section five thousand four of the civil prac-
tice law and rules; AND (f) the tenant may not sublet the unit for  more
than  a total of two years, including the term of the proposed sublease,
out of the four-year  period  preceding  the  termination  date  of  the
proposed  sublease. The provisions of this subparagraph shall only apply
to subleases commencing on and after July first, nineteen hundred eight-
y-three[; (g) for the purposes of this paragraph only, the term  of  the
proposed  sublease may extend beyond the term of the tenant's lease]. In
such event, such sublease shall be subject to the tenant's  right  to  a
[renewal  lease]  STATUTORY TENANCY PURSUANT TO THIS LAW.  The subtenant
shall have no right to a renewal lease. It shall be unreasonable for  an
owner  to  refuse  to consent to a sublease solely because such sublease
extends  beyond  the  tenant's  lease[;  and  (h)  notwithstanding   the
provisions of section two hundred twenty-six-b of the real property law,
a  not-for-profit  hospital  shall  have the right to sublet any housing
accommodation leased by it to its affiliated personnel without requiring
the landlord's consent to any such sublease and without being  bound  by
the  provisions  of  subparagraphs  (b),  (c) and (f) of this paragraph.
Commencing with the effective date  of  this  subparagraph,  whenever  a
not-for-profit  hospital executes a renewal lease for a housing accommo-
dation, the legal regulated rent shall be increased by a  sum  equal  to
fifteen  percent  of the previous lease rental for such housing accommo-
dation, hereinafter referred to as a vacancy surcharge, unless the land-
lord shall have received within the  seven  year  period  prior  to  the
commencement date of such renewal lease any vacancy increases or vacancy
surcharges allocable to the said housing accommodation. In the event the
landlord  shall  have  received  any  such  vacancy increases or vacancy
surcharges during such seven year period, the vacancy surcharge shall be
reduced by the amount received by any such vacancy increase  or  vacancy
surcharges].

S. 3704                             8

  NOTWITHSTANDING  ANY  PROVISIONS  OF  THIS  PARAGRAPH  OR  SECTION TWO
HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW TO THE  CONTRARY  RELATING
TO THE RIGHT TO SUBLEASE OR ASSIGN ANY TENANT OF A HOUSING ACCOMMODATION
COVERED  BY THE PROVISIONS OF THIS LAW SHALL BE ENTITLED TO THE BENEFITS
OF  THIS PARAGRAPH EVEN IF THE TENANT DOES NOT HAVE A WRITTEN LEASE. THE
PROVISIONS OF THIS PARAGRAPH AND SECTION TWO HUNDRED TWENTY-SIX-B OF THE
REAL PROPERTY LAW SHALL BE APPLIED ACCORDINGLY.
  F. NOTWITHSTANDING ANY CONTRARY PROVISIONS  OF  THIS  CHAPTER,  ON  OR
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN:
  (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
THE  OWNER  IS ENTITLED, SHALL BE REMOVED FROM ANY HOUSING ACCOMMODATION
WHICH IS SUBJECT TO REGULATION UNDER THIS CHAPTER BY ACTION TO EVICT  OR
TO  RECOVER  POSSESSION, OR OTHERWISE, NOR SHALL ANY PERSON ATTEMPT SUCH
REMOVAL OR EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT  THAT  THE
TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
HAS  EXPIRED  OR OTHERWISE TERMINATED, AND NOTWITHSTANDING ANY CONTRACT,
LEASE AGREEMENTS, OR OBLIGATION HERETOFORE  OR  HEREAFTER  ENTERED  INTO
WHICH  CONFLICTS  WITH  THE PROVISIONS OF THIS CHAPTER, EXCEPT ON ONE OR
MORE OF THE GROUNDS SET FORTH IN THIS CHAPTER,  OR  THE  CODE  OR  REGU-
LATIONS  PROMULGATED  PURSUANT TO THIS CHAPTER, INCLUDING THE PROVISIONS
OF THIS CHAPTER WHICH PERMIT AN OWNER TO REFUSE TO RENEW A LEASE.
  (2) NO OWNER SHALL, IN THE ABSENCE OF AN EXISTING LEASE,  COMMENCE  AN
ACTION  OR PROCEEDING SEEKING TO REMOVE A TENANT FROM ANY HOUSING ACCOM-
MODATION WHICH IS SUBJECT TO REGULATION UNDER  THIS  LAW  BY  ACTION  TO
EVICT  OR  TO RECOVER POSSESSION, OR OTHERWISE, ON A GROUND SET FORTH IN
THIS LAW PERMITTING AN OWNER TO REFUSE TO  RENEW  A  LEASE,  UNLESS  THE
OWNER  SHALL  HAVE  GIVEN NINETY DAYS NOTICE TO THE TENANT OF HIS OR HER
INTENTION TO COMMENCE AN ACTION OR PROCEEDING ON SUCH GROUND.
  (3) ANY ORDER OF THE STATE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL
AUTHORIZED  BY  PROVISIONS OF THIS LAW PROVIDING THAT A HOUSING ACCOMMO-
DATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW UPON THE EXPI-
RATION OF THE EXISTING LEASE SHALL  PROVIDE  THAT  SUCH  ORDER,  IN  THE
ABSENCE  OF AN EXISTING LEASE, SHALL TAKE EFFECT ONE HUNDRED EIGHTY DAYS
AFTER ITS ISSUANCE.
  (4) PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF  THIS  SUBDIVISION,
OWNERS  SHALL  NO  LONGER  OFFER  OR  ENTER  INTO RENEWAL LEASES FOR ANY
RENEWAL WHICH WOULD COMMENCE ON OR AFTER  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN.    HOWEVER,  OWNERS SHALL BE REQUIRED TO GRANT AND FURNISH TO A
NEW TENANT A VACANCY LEASE, IN ACCORDANCE WITH  SUBDIVISION  E  OF  THIS
SECTION  FOR  A  TERM WHICH SHALL EXPIRE ON DECEMBER THIRTY-FIRST OF THE
YEAR IN WHICH IT COMMENCES.
  (5) WHERE A TENANT ENTERS INTO A VACANCY LEASE AS  PROVIDED  IN  PARA-
GRAPH FOUR OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
LEGAL  REGULATED  RENT, AS ADJUSTED BY ANY APPLICABLE VACANCY ALLOWANCE,
UNLESS A VACANCY ALLOWANCE WAS PREVIOUSLY  COLLECTED  DURING  THE  PRIOR
TWELVE MONTH PERIOD.
  (6)  THE  OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A NOTICE OF
RIGHTS AND DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE  STATE  DIVI-
SION  OF  HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL OF THE
HOUSING ACCOMMODATION TO A NEW TENANT.
  (7) ANY TENANT WHOSE LEASE IN EFFECT  ON  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  FIFTEEN HAS EXPIRED, OR WHOSE VACANCY LEASE ENTERED INTO ON OR
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN HAS EXPIRED AND WHO THEREAFTER
VACATES A HOUSING ACCOMMODATION WITHOUT GIVING THE OWNER AT LEAST THIRTY
DAYS' WRITTEN NOTICE BY REGISTERED OR  CERTIFIED  MAIL  OF  HIS  OR  HER
INTENTION  TO  VACATE  SHALL BE LIABLE TO THE OWNER FOR THE LOSS OF RENT

S. 3704                             9

SUFFERED BY THE OWNER, BUT NOT EXCEEDING ONE MONTH'S RENT, EXCEPT  WHERE
THE  TENANT VACATES PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION. SUCH
NOTICE SHALL BE POSTMARKED ON OR BEFORE THE LAST DAY OF THE RENTAL PERI-
OD IMMEDIATELY PRIOR TO SUCH THIRTY DAY PERIOD.
  (8) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
BER THIRTY-FIRST, TWO THOUSAND FIFTEEN SHALL BE ADJUSTED EFFECTIVE JANU-
ARY  FIRST, TWO THOUSAND SIXTEEN AND ON THE FIRST DAY OF JANUARY OF EACH
YEAR THEREAFTER BY THE RENT ADJUSTMENT ESTABLISHED BY THE RENT BOARD.
  (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
ARY FIRST, TWO THOUSAND SIXTEEN WHICH EXPIRES BETWEEN JANUARY FIRST, TWO
THOUSAND SIXTEEN AND DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN SHALL
BE ADJUSTED EFFECTIVE THE FIRST DAY  FOLLOWING  ITS  EXPIRATION  BY  THE
APPLICABLE TRANSITIONAL ADJUSTMENTS ESTABLISHED BY THE RENT BOARD AND ON
THE  FIRST  DAY  OF  JANUARY EACH YEAR THEREAFTER BY THE RENT ADJUSTMENT
ESTABLISHED BY THE RENT BOARD.
  (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED ON OR AFTER
JANUARY FIRST, TWO THOUSAND SIXTEEN SHALL, IN ADDITION TO ANY ADJUSTMENT
PROVIDED FOR IN PARAGRAPH FIVE OF THIS SUBDIVISION, BE ADJUSTED  ON  THE
FIRST  DAY OF JANUARY EACH YEAR THEREAFTER BY THE RENT ADJUSTMENT ESTAB-
LISHED BY THE RENT BOARD.
  S 7. Subdivision a of section 26-405 of the administrative code of the
city of New York is amended by adding a new  paragraph  10  to  read  as
follows:
  (10)  (A) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS SUBDIVISION,
EFFECTIVE JANUARY FIRST, TWO THOUSAND SIXTEEN, MAXIMUM RENTS FOR HOUSING
ACCOMMODATIONS SUBJECT TO THIS CHAPTER SHALL NO  LONGER  BE  ESTABLISHED
PURSUANT TO PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION, OR LIMITED BY
PARAGRAPH  FIVE  OF THIS SUBDIVISION, OR ADJUSTED BY SUBPARAGRAPH (L) OR
(N) OF PARAGRAPH ONE OF SUBDIVISION G OF THIS SECTION.
  (B) EXCEPT AS OTHERWISE PROVIDED IN THIS  PARAGRAPH,  THE  RENT  BOARD
ESTABLISHED  PURSUANT  TO  SECTION  26-510 OF THIS TITLE SHALL ESTABLISH
ANNUAL RATES OF RENT ADJUSTMENT FOR THE CLASS OF HOUSING  ACCOMMODATIONS
SUBJECT  TO  THIS  CHAPTER,  IN THE MANNER PROVIDED BY SUCH SECTION. THE
FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT TO THIS CHAPTER  MAY  NOT
BE  CONSIDERED  AS  A FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT.
NOT LATER THAN OCTOBER FIRST, TWO THOUSAND FIFTEEN, AND NOT  LATER  THAN
OCTOBER  FIRST  ANNUALLY  THEREAFTER, THE RENT BOARD SHALL FILE WITH THE
CITY CLERK AND THE DIVISION OF HOUSING AND COMMUNITY RENEWAL  ITS  FIND-
INGS  ESTABLISHED  IN  CONSIDERATION  OF  THE ECONOMIC FACTORS LISTED IN
SUBDIVISION B OF SECTION 26-510 OF THIS TITLE, AND SHALL ACCOMPANY  SUCH
FINDINGS  WITH  A STATEMENT OF THE MAXIMUM RATE OR RATES OF RENT ADJUST-
MENT, IF ANY, FOR ONE OR MORE CLASSES OF ACCOMMODATIONS SUBJECT TO  THIS
CHAPTER AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUSING
ACCOMMODATION  FOR THE TWELVE MONTH PERIOD COMMENCING JANUARY FIRST, TWO
THOUSAND SIXTEEN AND FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
  (C) EFFECTIVE JANUARY FIRST, TWO THOUSAND SIXTEEN,  THE  MAXIMUM  RENT
COLLECTIBLE  FROM  THE  TENANT  SHALL BE THE MAXIMUM RENT COLLECTIBLE ON
DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, INCLUDING ANY RENT  ADJUST-
MENTS  THEN COLLECTIBLE PURSUANT TO SUBPARAGRAPH (N) OF PARAGRAPH ONE OF
SUBDIVISION G OF THIS SECTION, AS SUCH RENT MAY BE ADJUSTED PURSUANT  TO
SUBPARAGRAPH  (B)  OF  THIS  PARAGRAPH ANNUALLY, WITHOUT AN ORDER OF THE
CITY RENT AGENCY, OR AS ADJUSTED PURSUANT TO ANY OTHER PROVISION OF THIS
CHAPTER, PROVIDED THAT A LANDLORD SHALL NOT COLLECT ANY RENT INCREASE OR
ADJUSTMENT OTHERWISE COLLECTIBLE UNDER SUBPARAGRAPH (B)  OF  THIS  PARA-
GRAPH  UNLESS  AND  UNTIL THE FIRST RENT PAYMENT DATE AFTER THE LANDLORD
CERTIFIES TO THE CITY RENT AGENCY THAT ALL RENT IMPAIRING VIOLATIONS, AS

S. 3704                            10

DEFINED BY SECTION THREE HUNDRED TWO-A OF THE MULTIPLE DWELLING LAW, AND
AT LEAST EIGHTY PER CENTUM OF ALL OTHER VIOLATIONS OF THE HOUSING  MAIN-
TENANCE  CODE  OR  OTHER STATE OR LOCAL LAWS THAT IMPOSE REQUIREMENTS ON
PROPERTY AND WHICH WERE RECORDED AGAINST THE PROPERTY ON JULY FIRST, TWO
THOUSAND  FIFTEEN,  OR  JULY FIRST OF THE YEAR PRECEDING THE ADJUSTMENT,
WHICHEVER IS LATER, HAVE BEEN CLEARED, CORRECTED OR ABATED AND THE LAND-
LORD HAS RECEIVED A CERTIFICATE OF ELIGIBILITY FROM THE CITY RENT AGENCY
THAT THE VIOLATION CLEARING REQUIREMENTS SET FORTH ABOVE HAVE  BEEN  MET
AND  FURTHER  AUTHORIZING  THE  LANDLORD TO COLLECT ANY RENT INCREASE OR
ADJUSTMENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (B)  OF  THIS  PARAGRAPH,
AND THE LANDLORD HAS SERVED SUCH CERTIFICATE UPON THE TENANT RESIDING IN
THE HOUSING ACCOMMODATION.
  (D)  MAXIMUM  RATES  OF  RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
WITHIN THE BOARD'S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER  OR  OTHER
MODIFICATION.
  (E) NOTHING CONTAINED IN THIS PARAGRAPH OR IN SUBDIVISION F OF SECTION
26-511 OF THIS TITLE SHALL ALTER, RESTRICT OR IMPAIR AN OWNER'S RIGHT TO
ESTABLISH  THE INITIAL REGULATED RENT FOR ACCOMMODATIONS SUBJECT TO THIS
CHAPTER WHICH BECOME VACANT.
  S 8.  Section 4 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 486 of the laws of 1976,  subdivision  a  as
amended  by  chapter  349  of the laws of 1979, the opening paragraph of
subdivision b as amended and subdivision d as added by  chapter  403  of
the  laws  of  1983, and the second and third undesignated paragraphs of
subdivision b as amended by chapter 330 of the laws of 1980, is  amended
to read as follows:
  S  4.  Establishment  of  rent [guidelines] boards; duties. a. In each
county wherein any city having a population of less than one million  or
any  town or village has determined the existence of an emergency pursu-
ant to section three of this act, there shall be created a rent  [guide-
lines]  board  to consist of nine members appointed by the [commissioner
of housing and community renewal upon recommendation of]  COUNTY  EXECU-
TIVE UPON THE ADVICE AND CONSENT OF the county legislature which [recom-
mendation]  APPOINTMENT shall be made within thirty days after the first
local declaration of an emergency  in  such  county;  [two]  THREE  such
members  shall be representative of tenants, [two] THREE shall be repre-
sentative of owners of  property,  and  [five]  THREE  shall  be  public
members  [each  of  whom].  EACH OF THE PUBLIC MEMBERS shall have had at
least five years experience  in  either  PUBLIC  SERVICE,  PHILANTHROPY,
SOCIAL  SERVICES, URBAN PLANNING, ARCHITECTURE, SOCIAL SCIENCES, SERVICE
WITH NOT-FOR-PROFIT ORGANIZATIONS, finance, economics  or  housing.  One
public member shall be designated by the [commissioner] COUNTY EXECUTIVE
UPON  THE  ADVICE  AND  CONSENT  OF  THE  COUNTY LEGISLATURE to serve as
[chairman] CHAIR and shall hold no  other  public  office.  No  [member,
officer  or] employee of THE COUNTY OR OF any [municipal rent regulation
agency] MUNICIPALITY WITHIN THE COUNTY or OF the state division of hous-
ing and community renewal and no person who owns or manages real  estate
covered  by this law or [who is an officer of any owner or tenant organ-
ization] MORE THAN TWO RENTAL HOUSING ACCOMMODATIONS NOT COVERED BY THIS
LAW shall serve on a rent [guidelines] board. [One  public  member,  one
member representative of tenants and one member representative of owners
shall serve for a term ending two years from January first next succeed-
ing  the date of their appointment; one public member, one member repre-

S. 3704                            11

sentative of tenants and one member representative of owners shall serve
for terms ending three years from the January first next succeeding  the
date of their appointment and three public members shall serve for terms
ending  four years from January first next succeeding the dates of their
appointment.] ALL MEMBERS OF A COUNTY RENT BOARD  SHALL  SERVE  TWO-YEAR
TERMS,  BEGINNING THE LATER OF THE DATE OF APPOINTMENT OR THE EXPIRATION
OF THE TERM OF THE MEMBER WHOM THE APPOINTEE IS SUCCEEDING.  Thereafter,
all  members  shall [serve for terms of four years each.  Members shall]
continue in office until their successors have been appointed and quali-
fied. The [commissioner] COUNTY EXECUTIVE UPON THE ADVICE AND CONSENT OF
THE COUNTY LEGISLATURE shall fill any vacancy which may occur by  reason
of  death,  resignation  or  otherwise  in  a manner consistent with the
[original appointment] PROVISIONS OF THIS SUBDIVISION. A member  may  be
removed  by  the  [commissioner]  COUNTY  LEGISLATURE for cause, but not
without an opportunity to be heard in person or by counsel,  in  his  OR
HER  defense,  upon  not  less than ten days notice. A SUCCESSOR TO SUCH
MEMBER SHALL BE APPOINTED IN ACCORDANCE WITH THIS SUBDIVISION  TO  SERVE
THE  BALANCE OF THE TERM OF THE MEMBER WHO WAS REMOVED. Compensation for
the members of the board shall be ON A PER DIEM BASIS at the rate of one
hundred FIFTY dollars per day, for no  more  than  [twenty]  TWENTY-FIVE
days  a  year,  except that the [chairman] CHAIR shall be compensated at
the rate of one hundred [twenty-five] SEVENTY-FIVE dollars a day for  no
more than [thirty] FIFTY days a year. [The board shall be provided staff
assistance  by the division of housing and community renewal.] THE CHAIR
SHALL BE THE CHIEF ADMINISTRATIVE OFFICER OF THE COUNTY RENT BOARD,  AND
AMONG  HIS  OR HER POWERS AND DUTIES, HE OR SHE SHALL HAVE THE AUTHORITY
TO EMPLOY, ASSIGN AND SUPERVISE THE EMPLOYEES OF THE BOARD,  AND  HE  OR
SHE  SHALL,  WITH  THE  ADVICE  AND CONSENT OF FOUR OR MORE OF THE OTHER
MEMBERS OF THE BOARD, ENTER INTO CONTRACTS FOR CONSULTANT SERVICES.  THE
DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL COOPERATE WITH THE RENT
BOARD AND SHALL ASSIGN SUCH  PERSONNEL  AND  PERFORM  SUCH  SERVICES  IN
CONNECTION  WITH  THE  DUTIES  OF  THE  RENT  BOARD AS MAY BE REASONABLY
REQUIRED BY THE BOARD. The compensation of such members SHALL BE PAID BY
THE COUNTY and the costs of staff assistance PROVIDED BY THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL shall be paid by the division  of  housing
and community renewal which shall be reimbursed in the manner prescribed
in  THIS  section [four of this act]. The local legislative body of each
city having a population of less than one  million  and  each  town  and
village  in  which  an  emergency has been determined to exist as herein
provided shall be authorized to designate one person who shall be repre-
sentative of tenants and one  person  who  shall  be  representative  of
owners  of property to serve at its pleasure and without compensation to
advise and assist the county rent [guidelines] board in matters  affect-
ing  the  adjustment  of  rents for housing accommodations in such city,
town or village as the case may be.
  b. A county rent [guidelines] board shall establish  annually  [guide-
lines  for] rent adjustments which, at its sole discretion may be varied
and different for and within the several zones and jurisdictions of  the
[board]  COUNTY,  and  in determining whether rents for housing accommo-
dations as to which an emergency has been declared pursuant to this  act
shall  be  adjusted,  shall consider among other things (1) THE STATE OF
THE RENTAL REAL ESTATE MARKET AND SUBMARKETS WITHIN THOSE AREAS  OF  THE
COUNTY  WITH  HOUSING  ACCOMMODATIONS SUBJECT TO THIS ACT, INCLUDING THE
AVAILABILITY OF AFFORDABLE, HABITABLE RENTAL HOUSING ACCOMMODATIONS; (2)
the economic condition of the residential real estate industry  in  [the
affected area including] THOSE AREAS OF THE COUNTY WITH HOUSING ACCOMMO-

S. 3704                            12

DATIONS  SUBJECT  TO THIS ACT OR THE EMERGENCY HOUSING RENT CONTROL LAW,
INCLUDING CHANGES IN THE VALUE OF RESIDENTIAL REAL ESTATE,  THE  PROFIT-
ABILITY  OF OWNERSHIP OF RENTAL HOUSING AND such factors as the prevail-
ing  and  projected (i) INCREASES OR DECREASES IN RENTS AND GROSS RENTAL
INCOME, INCLUDING INCOME FROM OTHER RESIDENTIAL RENTS, AS  WELL  AS  THE
IMPUTED  RENTAL  VALUE  FOR  APARTMENTS OCCUPIED BY OWNERS OR MEMBERS OF
THEIR FAMILIES OR ASSOCIATES OF OWNERS, FOR BUILDINGS  SUBJECT  TO  THIS
ACT  OR  THE  EMERGENCY HOUSING RENT CONTROL LAW WITHIN THE COUNTY, (II)
INCREASES OR DECREASES IN OPERATION AND MAINTENANCE COSTS  OF  BUILDINGS
SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT CONTROL LAW WITHIN THE
COUNTY  INCLUDING  real estate taxes [and], sewer and water rates, [(ii)
gross operating maintenance costs (including] insurance rates,  ADMINIS-
TRATIVE  COSTS,  governmental  fees, [cost of] fuel, UTILITIES and labor
[costs)], (iii) costs and availability of financing (including effective
rates of interest), AND COSTS, AVAILABILITY AND PROFITABILITY  OF  REFI-
NANCING,  (iv) ECONOMIC BENEFITS, OTHER THAN RENTAL INCOME, DERIVED FROM
OWNERSHIP AND UPGRADING OF  RENTAL  PROPERTY,  (V)  RETURNS  ON  CAPITAL
PLACED AT RISK BY OWNERS, (VI) over-all supply of housing accommodations
and  over-all  vacancy  rates, [(2)] (VII) INCREASES OR DECREASES IN NET
OPERATING INCOME FROM BUILDINGS SUBJECT TO THIS  ACT  OR  THE  EMERGENCY
HOUSING  RENT  CONTROL LAW WITHIN THE COUNTY, (3) relevant data from the
current and projected cost of living  indices  for  the  affected  area,
[(3)]  AND (4) such other data as may be made available to it. NET OPER-
ATING INCOME SHALL MEAN THE PERCENTAGE OF EACH DOLLAR  OF  GROSS  RENTAL
INCOME  REMAINING  AFTER  PAYMENT  OF ALL COSTS OF OPERATION AND MAINTE-
NANCE. DEBT SERVICE  PAYMENTS,  CAPITAL  EXPENDITURES  AND  DEPRECIATION
SHALL  NOT  BE  CONSIDERED  TO BE OPERATION AND MAINTENANCE COSTS, AND A
COUNTY RENT BOARD SHALL NOT  CONSIDER  DEBT  SERVICE  PAYMENTS,  CAPITAL
EXPENDITURES  OR  DEPRECIATION IN DETERMINING ANNUAL RENT ADJUSTMENTS. A
COUNTY RENT BOARD SHALL NOT CONSIDER A PRICE INDEX OF  OPERATING  COSTS.
IN  CALCULATING  LABOR  AND  ADMINISTRATIVE  COSTS, THE RENT BOARD SHALL
CONSIDER THE FEASIBILITY OF IMPUTING A VALUE TO THE  ACTUAL,  VERIFIABLE
UNSALARIED  LABOR  AND ADMINISTRATIVE TASKS PERFORMED BY BUILDING OWNERS
OR MEMBERS OF THEIR IMMEDIATE FAMILY WHO RESIDE WITH THEM IN  A  HOUSING
ACCOMMODATION IN A BUILDING SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING
RENT  CONTROL  LAW  WITHIN THE COUNTY.  IF THE INCLUSION OF THE VALUE OF
SUCH LABOR AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE BY THE BOARD,  IT
SHALL  BE  INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN.  ALL OWNERS
OF HOUSING ACCOMMODATIONS SUBJECT TO THIS ACT OR THE  EMERGENCY  HOUSING
RENT  CONTROL  LAW  WITHIN  THE  COUNTY SHALL ANNUALLY SUBMIT INCOME AND
EXPENDITURE REPORTS TO THE COUNTY RENT BOARD ON A FORM TO BE PROMULGATED
BY THE BOARD. OWNERS WHO FAIL TO SUBMIT SUCH REPORTS TO THE COUNTY  RENT
BOARD  SHALL BE BARRED FROM APPLYING FOR OR COLLECTING ANY RENT INCREASE
TO WHICH THE OWNER MIGHT OTHERWISE BE ENTITLED UNDER  THIS  ACT  OR  THE
EMERGENCY HOUSING RENT CONTROL LAW DURING THE TWELVE MONTH PERIOD BEGIN-
NING  THE  NEXT  JANUARY  FIRST.    THE COUNTY RENT BOARD SHALL ANNUALLY
REQUIRE A SAMPLE OF LANDLORDS SUBJECT TO REGULATION UNDER THIS ACT WITH-
IN THE COUNTY TO  MAKE  AVAILABLE  THEIR  BOOKS  AND  RECORDS  REGARDING
INCOME,  EXPENDITURES, TAX BENEFITS AND FINANCING ARRANGEMENTS FOR EXAM-
INATION BY THE BOARD AND THE BOARD SHALL  UTILIZE  THE  RESULTS  OF  THE
ANALYSIS  OF  SUCH SAMPLE AS ONE OF THE CRITERIA UPON WHICH ITS FINDINGS
ARE BASED. SUCH SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESENTATIVE
OF THE TYPES OF BUILDINGS, EXCLUDING BUILDINGS THAT HAVE BEEN  CONVERTED
TO  CO-OPERATIVE  OR  CONDOMINIUM STATUS, THAT ARE SUBJECT TO REGULATION
UNDER THIS ACT.  ANY INFORMATION PROVIDED BY LANDLORDS PURSUANT TO  THIS
SUBDIVISION REGARDING AN INDIVIDUAL BUILDING OR GROUP OF BUILDINGS SHALL

S. 3704                            13

NOT  BE AVAILABLE TO THE PUBLIC UNDER THE FREEDOM OF INFORMATION LAW AND
THE COUNTY RENT BOARD SHALL SAFEGUARD THE CONFIDENTIALITY OF SUCH INFOR-
MATION PROVIDED HOWEVER, THAT THE BOARD  SHALL  MAKE  AVAILABLE  TO  THE
PUBLIC  CUMULATIVE  AND  STATISTICAL  RESULTS  OF  THE ANNUAL INCOME AND
EXPENDITURE SUBMISSIONS AND THE EXAMINATION OF THE REPRESENTATIVE SAMPLE
OF BOOKS AND RECORDS REQUIRED HEREIN. As soon as practicable  after  its
creation  and  thereafter  not  later  than [July] OCTOBER first of each
year, a COUNTY rent [guidelines] board shall file with the  state  divi-
sion  of  housing  and  community renewal its findings for the preceding
calendar year, and shall accompany such findings with a statement of the
maximum rate or rates of rent adjustment, if any, for one or more class-
es of HOUSING accommodation subject  to  this  act  WITHIN  THE  COUNTY,
authorized  for  VACANCY leases or [other rental agreements] ANNUAL RENT
ADJUSTMENTS commencing [during] ON the next succeeding JANUARY FIRST  OR
WITHIN THE twelve months THEREAFTER.  The standards for rent adjustments
may  be  applicable  for the entire county or may be varied according to
such zones or jurisdictions within such county as the board finds neces-
sary to achieve the purposes of this subdivision.  THE ADDITIONAL ALLOW-
ANCE, IF ANY, FOR LEASES ON VACANT  APARTMENTS  SHALL  NOT  EXCEED  FIVE
PERCENT. ANY SUCH VACANCY ALLOWANCE SHALL NOT BE IMPLEMENTED FOR A HOUS-
ING ACCOMMODATION MORE THAN ONE TIME IN ANY CALENDAR YEAR, NOTWITHSTAND-
ING  THE NUMBER OF VACANCY LEASES ENTERED INTO FOR SUCH HOUSING ACCOMMO-
DATION IN SUCH CALENDAR YEAR.   A COUNTY RENT  BOARD  SHALL  DISSEMINATE
SUCH  FINDINGS  AND  STATEMENT TO COUNTYWIDE AND LOCAL NEWSPAPERS, RADIO
AND TELEVISION STATIONS AND OTHER MEDIA.
  The standards for  rent  adjustments  established  annually  shall  be
effective  for  [leases]  VACANCY  LEASES  OR  ANNUAL  RENT  ADJUSTMENTS
commencing on [October] JANUARY first of each year and during  the  next
succeeding twelve months whether or not the board has filed its findings
and  statement of the maximum rate or rates of rent adjustment by [July]
OCTOBER first of each year. If such [lease]  VACANCY  LEASE  is  entered
into  before such filing by the board, it may provide for the rent to be
adjusted by the rates then in effect, subject to change by the  applica-
ble  rates of rent adjustment when filed, such change to be effective as
of the date of the commencement of the lease. [Said lease  must  provide
that, if the new rates of rent adjustment differ for leases of different
terms,  the tenant has the option of changing the original lease term to
any other term for which a rate of rent adjustment is set by the  board,
with the rental to be adjusted accordingly.]
  Where  a city, town or village shall act to determine the existence of
A public emergency pursuant to section three of this act  subsequent  to
the  establishment  of annual [guidelines for] rent adjustments [of] FOR
the HOUSING accommodations subject to this  act,  the  [rent  guidelines
board  as  soon  as  practicable  thereafter shall file its findings and
rates of rent adjustment for leases or other rental agreements  for  the
housing accommodations in] RENT ADJUSTMENTS THEN IN EFFECT IN THE COUNTY
SHALL APPLY TO such a city, town or village, which rates shall be effec-
tive  for  [leases  or other rental agreements] VACANCY LEASES OR ANNUAL
RENT ADJUSTMENTS commencing on or after the effective date of the deter-
mination.
  c. [In a city having a population of one million  or  more,  the  rent
guidelines board shall be the rent guidelines board established pursuant
to  the  New York city rent stabilization law of nineteen hundred sixty-
nine as amended, and such board shall have the powers  granted  pursuant
to  the  New York city rent stabilization law of nineteen hundred sixty-
nine as amended.] A COUNTY RENT BOARD, PRIOR TO THE ANNUAL ADJUSTMENT OF

S. 3704                            14

THE LEVEL OF RENTS PROVIDED FOR UNDER SUBDIVISION B OF THIS SECTION  FOR
HOUSING ACCOMMODATIONS SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT
CONTROL  LAW, SHALL HOLD A PUBLIC HEARING OR HEARINGS FOR THE PURPOSE OF
COLLECTING  INFORMATION RELATING TO ALL FACTORS SET FORTH IN SUBDIVISION
B OF THIS SECTION. NOTICE OF THE DATE, TIME,  LOCATION  AND  SUMMARY  OF
SUBJECT  MATTER FOR THE PUBLIC HEARING OR HEARINGS SHALL BE PUBLISHED AT
LEAST ONCE IN ONE OR MORE NEWSPAPERS OF  GENERAL  CIRCULATION  AT  LEAST
EIGHT  DAYS  IMMEDIATELY  PRECEDING EACH HEARING DATE, AT THE EXPENSE OF
THE COUNTY, AND THE HEARING OR HEARINGS SHALL BE OPEN FOR TESTIMONY FROM
ANY INDIVIDUAL, GROUP, ASSOCIATION OR REPRESENTATIVE THEREOF  WHO  WANTS
TO TESTIFY.
  d.  NO  OWNER  OF ANY HOUSING ACCOMMODATION SUBJECT TO THIS ACT OR THE
EMERGENCY HOUSING RENT CONTROL LAW MAY IMPOSE OR COLLECT DURING CALENDAR
YEAR TWO THOUSAND FIFTEEN AN ANNUAL RENT ADJUSTMENT AS ADOPTED  PURSUANT
TO  THE  PROVISIONS  OF  SUBDIVISION B OF THIS SECTION IF THERE EXIST OF
RECORD WITH REGARD TO THE PROPERTY CONTAINING SUCH HOUSING ACCOMMODATION
ON JANUARY FIRST OF SUCH YEAR ANY OUTSTANDING  HAZARDOUS  VIOLATIONS  OF
RECORD  AS  OF  JULY  1,  2015  OR MORE THAN TWENTY PERCENT OF ALL OTHER
VIOLATIONS OF RECORD AS OF JULY 1, 2015; OR DURING A SUBSEQUENT CALENDAR
YEAR IF THERE EXIST OF RECORD WITH REGARD TO SUCH  PROPERTY  ON  JANUARY
FIRST  OF SUCH YEAR ANY OUTSTANDING HAZARDOUS VIOLATIONS OF RECORD AS OF
JULY FIRST OF THE PRIOR YEAR OR MORE THAN TWENTY PERCENT  OF  ALL  OTHER
VIOLATIONS  OF  RECORD AS OF JULY FIRST OF THE PRIOR YEAR, AS DETERMINED
PURSUANT TO REGULATIONS OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
OR ANY AGENCY ADMINISTERING AND ENFORCING A  BUILDING  CODE  OR  HOUSING
MAINTENANCE CODE IN THE JURISDICTION IN WHICH THE PROPERTY IS LOCATED.
  E.  IN FURTHERANCE OF ITS RESPONSIBILITY TO ENFORCE THIS ACT, A COUNTY
RENT  BOARD  SHALL  BE  EMPOWERED  TO ADMINISTER OATHS, ISSUE SUBPOENAS,
CONDUCT INVESTIGATIONS AND MAKE INSPECTIONS.
  F. Maximum rates of rent adjustment shall not be established more than
once annually for any housing accommodation within a COUNTY RENT board's
jurisdiction. Once established, no such rate shall[, within the one-year
period,] be adjusted by any surcharge, supplementary adjustment or other
modification.  NO RENT ADJUSTMENT SHALL BE ESTABLISHED BASED ON THE RENT
LEVEL OF HOUSING ACCOMMODATIONS SUBJECT TO THIS  ACT  OR  THE  EMERGENCY
HOUSING  RENT  CONTROL  LAW  OR  THE NUMBER OF HOUSING ACCOMMODATIONS IN
AFFECTED BUILDINGS.
  G. A COUNTY RENT BOARD IS HEREBY EMPOWERED TO SEEK AND RECEIVE FUNDING
FROM ANY GOVERNMENT SOURCE  FOR  ITS  OPERATIONS.  NOTWITHSTANDING  THIS
PROVISION,  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL CONTINUE
TO PROVIDE STAFF ASSISTANCE TO THE COUNTY RENT BOARDS PURSUANT TO SUBDI-
VISION A OF THIS SECTION.
  H. IN A CITY HAVING A POPULATION OF ONE  MILLION  OR  MORE,  THE  RENT
BOARD  SHALL BE THE RENT BOARD ESTABLISHED PURSUANT TO THE NEW YORK CITY
RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE  AS  AMENDED,  AND
SUCH  BOARD  SHALL HAVE THE POWERS GRANTED PURSUANT TO THE NEW YORK CITY
RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE AS AMENDED.
  S 9. 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, is REPEALED.
  S 10. Section 10 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 ANY CONTRARY PROVISIONS OF THIS ACT,  ON  OR  AFTER
JANUARY 1, 2016:

S. 3704                            15

  (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
THE  OWNER  IS ENTITLED, SHALL BE REMOVED FROM ANY HOUSING ACCOMMODATION
WHICH IS SUBJECT TO REGULATION UNDER THIS ACT BY ACTION TO EVICT  OR  TO
RECOVER  POSSESSION,  OR  OTHERWISE,  NOR  SHALL ANY PERSON ATTEMPT SUCH
REMOVAL  OR  EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT THAT THE
TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
HAS EXPIRED OR OTHERWISE TERMINATED, AND NOTWITHSTANDING  ANY  CONTRACT,
LEASE AGREEMENT OR OBLIGATION HERETOFORE OR HEREAFTER ENTERED INTO WHICH
CONFLICTS  WITH THE PROVISIONS OF THIS ACT, EXCEPT ON ONE OR MORE OF THE
GROUNDS SET FORTH IN THIS ACT WHICH PERMITS AN OWNER TO REFUSE TO  RENEW
A LEASE.
  (2)  NO  OWNER SHALL, IN THE ABSENCE OF AN EXISTING LEASE, COMMENCE AN
ACTION OR PROCEEDING SEEKING TO REMOVE A TENANT FROM ANY HOUSING  ACCOM-
MODATION  WHICH  IS  SUBJECT  TO  REGULATION UNDER THIS LAW BY ACTION TO
EVICT OR TO RECOVER POSSESSION, OR OTHERWISE, ON A GROUND SET  FORTH  IN
THIS  LAW  PERMITTING  AN  OWNER  TO REFUSE TO RENEW A LEASE, UNLESS THE
OWNER SHALL HAVE GIVEN NINETY DAYS NOTICE TO THE TENANT OF  HIS  OR  HER
INTENTION TO COMMENCE AN ACTION OR PROCEEDING ON SUCH GROUND.
  (3)  ANY  ORDER OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL
AUTHORIZED BY PROVISIONS OF THIS LAW PROVIDING THAT A  HOUSING  ACCOMMO-
DATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW UPON THE EXPI-
RATION  OF  THE  EXISTING  LEASE  SHALL  PROVIDE THAT SUCH ORDER, IN THE
ABSENCE OF AN EXISTING LEASE, SHALL TAKE EFFECT ONE HUNDRED EIGHTY  DAYS
AFTER ITS ISSUANCE.
  (4)  PURSUANT  TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION,
OWNERS SHALL NO LONGER OFFER  OR  ENTER  INTO  RENEWAL  LEASES  FOR  ANY
RENEWAL  WHICH  COMMENCED  ON  OR  AFTER JANUARY 1, 2016; HOWEVER OWNERS
SHALL BE REQUIRED TO GRANT AND FURNISH TO A NEW TENANT A VACANCY  LEASE,
IN  ACCORDANCE  WITH  THE  PROVISIONS  OF  SUBDIVISIONS  A AND C OF THIS
SECTION, FOR A TERM WHICH SHALL EXPIRE ON THE THIRTY-FIRST DAY OF DECEM-
BER OF THE YEAR IN WHICH IT COMMENCED.
  (5) WHERE A TENANT ENTERS INTO A VACANCY LEASE AS  PROVIDED  IN  PARA-
GRAPH FOUR OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
LEGAL  REGULATED  RENT, AS ADJUSTED BY ANY APPLICABLE VACANCY ALLOWANCE,
UNLESS A VACANCY ALLOWANCE WAS PREVIOUSLY  COLLECTED  DURING  THE  PRIOR
TWELVE MONTH PERIOD.
  (6)  THE  OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A NOTICE OF
RIGHTS AND DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE  STATE  DIVI-
SION  OF  HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL OF THE
HOUSING ACCOMMODATION TO A NEW TENANT.
  (7) ANY TENANT WHOSE LEASE IN EFFECT ON DECEMBER 31, 2016 HAS EXPIRED,
OR WHOSE VACANCY LEASE ENTERED INTO ON OR  AFTER  JANUARY  1,  2016  HAS
EXPIRED,  AND  WHO  THEREAFTER  VACATES  A HOUSING ACCOMMODATION WITHOUT
GIVING THE OWNER AT LEAST THIRTY DAYS' WRITTEN NOTICE BY  REGISTERED  OR
CERTIFIED MAIL OF HIS OR HER INTENTION TO VACATE, SHALL BE LIABLE TO THE
OWNER  FOR THE LOSS OF RENT SUFFERED BY THE OWNER, BUT NOT EXCEEDING ONE
MONTH'S RENT, WHERE THE TENANT VACATES PURSUANT  TO  THE  PROVISIONS  OF
THIS  SECTION. SUCH NOTICE SHALL BE POSTMARKED ON OR BEFORE THE LAST DAY
OF THE RENTAL PERIOD IMMEDIATELY PRIOR TO THE THIRTY DAY PERIOD.
  (8) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
BER 31, 2015 SHALL BE ADJUSTED EFFECTIVE JANUARY  1,  2016  AND  ON  THE
FIRST  DAY  OF  JANUARY  OF  EACH YEAR THEREAFTER BY THE RENT ADJUSTMENT
ESTABLISHED BY THE RENT BOARD.
  (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
ARY 1, 2016 WHICH EXPIRES BETWEEN JANUARY 1, 2016 AND DECEMBER 31,  2017
SHALL  BE  ADJUSTED  EFFECTIVE THE FIRST DAY FOLLOWING ITS EXPIRATION BY

S. 3704                            16

THE APPLICABLE TRANSITIONAL ADJUSTMENTS ESTABLISHED BY  THE  RENT  BOARD
AND  ON  THE  FIRST  DAY  OF JANUARY OF EACH YEAR THEREAFTER BY THE RENT
ADJUSTMENT ESTABLISHED BY THE RENT BOARD.
  (C)  THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED INTO ON OR
AFTER JANUARY 1, 2016 SHALL, IN ADDITION TO ANY ADJUSTMENT PROVIDED  FOR
IN  PARAGRAPH  FIVE OF THIS SUBDIVISION, BE ADJUSTED ON THE FIRST DAY OF
JANUARY OF EACH YEAR THEREAFTER BY THE RENT  ADJUSTMENT  ESTABLISHED  BY
THE RENT BOARD.
  S  11.  Section  10-a 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 940 of the laws of 1984, is amended to read
as follows:
  S 10-a. Right to sublease. Units subject to this  law  may  be  sublet
pursuant to section [two hundred twenty-six-b] 226-B of the real proper-
ty  law  provided  that (a) the rental charged to the subtenant does not
exceed the legal regulated rent plus a ten percent surcharge payable  to
the tenant if the unit sublet was furnished with the tenant's furniture;
(b)  the  tenant  can  establish that at all times he has maintained the
unit as his primary residence and intends to occupy it as  such  at  the
expiration  of the sublease; (c) an owner may terminate the tenancy of a
tenant who sublets or assigns contrary to the terms of this section [but
no action or proceeding based on the non-primary residence of  a  tenant
may  be  commenced prior to the expiration date of his lease]; (d) where
an apartment is sublet the prime tenant shall  retain  the  right  to  a
[renewal  lease] STATUTORY TENANCY and the rights and status of a tenant
in occupancy as they relate to conversion to condominium or  cooperative
ownership; (e) where a tenant violates the provisions of subdivision (a)
of  this  section  the  subtenant  shall be entitled to damages of three
times the overcharge and may also be awarded attorneys fees and interest
from the date of the overcharge at the rate of  interest  payable  on  a
judgment  pursuant  to  section five thousand four of the civil practice
law and rules; AND (f) the tenant may not sublet the unit for more  than
a  total  of two years, including the term of the proposed sublease, out
of the four-year period preceding the termination date of  the  proposed
sublease.  The  provisions of this subdivision [(f)] shall only apply to
subleases commencing on and after July first, nineteen  hundred  eighty-
three[;  (g)  for  the  purposes  of  this section only, the term of the
proposed sublease may extend beyond the term of the tenant's lease].  In
such  event,  such  sublease shall be subject to the tenant's right to a
[renewal lease] STATUTORY TENANCY PURSUANT TO THIS ACT.   The  subtenant
shall  have no right to a renewal lease. It shall be unreasonable for an
owner to refuse to consent to a sublease solely  because  such  sublease
extends   beyond  the  tenant's  lease[;  and  (h)  notwithstanding  the
provisions of section two hundred twenty-six-b of the real property law,
a not-for-profit hospital shall have the right  to  sublet  any  housing
accommodation leased by it to its affiliated personnel without requiring
the  landlord's  consent to any such sublease and without being bound by
the provisions of  subdivisions  (b),  (c)  and  (f)  of  this  section.
Commencing  with the effective date of this subdivision, whenever a not-
for-profit hospital executes a renewal  lease  for  a  housing  accommo-
dation,  the  legal  regulated rent shall be increased by a sum equal to
fifteen percent of the previous lease rental for such  housing  accommo-
dation, hereinafter referred to as a vacancy surcharge, unless the land-
lord  shall  have  received  within  the  seven year period prior to the
commencement date of such renewal lease any vacancy increases or vacancy
surcharges allocable to the said housing accommodation. In the event the

S. 3704                            17

landlord shall have received  any  such  vacancy  increases  or  vacancy
surcharges during such seven year period, the vacancy surcharge shall be
reduced  by  the amount received by any such vacancy increase or vacancy
surcharges].
  NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION OR SECTION 226-B OF THE
REAL PROPERTY LAW TO THE CONTRARY, ANY TENANT OF A HOUSING ACCOMMODATION
COVERED  BY THE PROVISIONS OF THIS ACT SHALL BE ENTITLED TO THE BENEFITS
OF SECTION 226-B OF THE REAL PROPERTY  LAW  RELATING  TO  THE  RIGHT  TO
SUBLEASE OR ASSIGN EVEN IF THE TENANT DOES NOT HAVE A WRITTEN LEASE. THE
PROVISIONS  OF  THIS  SECTION AND SECTION 226-B OF THE REAL PROPERTY LAW
SHALL BE APPLIED ACCORDINGLY.
  S 12. Section 4 of chapter 274 of the laws of 1946,  constituting  the
emergency  housing rent control law, is amended by adding a new subdivi-
sion 9 to read as follows:
  9. NOTWITHSTANDING ANY CONTRARY  PROVISIONS  OF  THIS  LAW,  EFFECTIVE
JANUARY  1,  2016, EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, THE
RENT FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER LOCATED  IN  THE
COUNTIES OF WESTCHESTER AND NASSAU SHALL BE ADJUSTED AS FOLLOWS:
  (A)  THE  COUNTY  RENT BOARDS ESTABLISHED PURSUANT TO SECTION 4 OF THE
EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR,  SHALL  ESTAB-
LISH  ANNUAL  RENT  ADJUSTMENTS  FOR THE CLASS OF HOUSING ACCOMMODATIONS
SUBJECT TO THIS CHAPTER LOCATED  IN  THE  COUNTIES  OF  WESTCHESTER  AND
NASSAU,  IN THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT THE HOUS-
ING ACCOMMODATION IS SUBJECT TO THIS LAW MAY  NOT  BE  CONSIDERED  AS  A
FACTOR  IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN OCTO-
BER 1, 2015, AND NOT LATER THAN OCTOBER FIRST ANNUALLY  THEREAFTER,  THE
COUNTY  RENT BOARDS SHALL FILE WITH THE COMMISSION THEIR FINDINGS ESTAB-
LISHED IN CONSIDERATION OF THE ECONOMIC FACTORS LISTED IN SUBDIVISION  B
OF  SECTION  4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVEN-
TY-FOUR, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXI-
MUM RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE OR MORE CLASSES OF
ACCOMMODATIONS SUBJECT TO THIS LAW WITHIN SUCH COUNTIES  AUTHORIZED  FOR
THE  ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE
TWELVE MONTH PERIOD COMMENCING JANUARY 1, 2016, AND FOR EACH  SUCCEEDING
TWELVE MONTH PERIOD.
  (B)  EFFECTIVE  JANUARY 1, 2016, THE MAXIMUM RENT COLLECTIBLE FROM THE
TENANT SHALL BE THE MAXIMUM RENT COLLECTIBLE ON DECEMBER  31,  2015,  AS
SUCH  RENT MAY BE ADJUSTED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION
ANNUALLY, WITHOUT AN ORDER OF THE COMMISSION, OR AS ADJUSTED PURSUANT TO
ANY OTHER PROVISION OF THIS LAW. HOWEVER, NO SUCH INCREASE  PURSUANT  TO
PARAGRAPH  (A) OF THIS SUBDIVISION SHALL BE AUTHORIZED UNTIL THE EXPIRA-
TION OF TWELVE MONTHS FROM THE EFFECTIVE DATE  OF  ANY  RENT  ADJUSTMENT
AUTHORIZED  PURSUANT  TO  REGULATIONS  ADOPTED  FOR  RENT ADJUSTMENTS TO
COMPENSATE FOR UNAVOIDABLE INCREASED COSTS OF OPERATIONS AS PROVIDED FOR
UNDER THIS LAW.
  (C) MAXIMUM RATES OF RENT ADJUSTMENT SHALL  NOT  BE  ESTABLISHED  MORE
THAN  ONCE  ANNUALLY  FOR  ANY HOUSING ACCOMMODATION SUBJECT TO THIS LAW
WITHIN A BOARD'S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE  SHALL  BE
ADJUSTED  BY  ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
MODIFICATION.
  (D) NOTHING CONTAINED IN THIS  SUBDIVISION  OR  IN  SUBDIVISION  D  OF
SECTION   10   OF  THE  EMERGENCY  TENANT  PROTECTION  ACT  OF  NINETEEN
SEVENTY-FOUR SHALL ALTER, RESTRICT OR IMPAIR AN OWNER'S RIGHT TO  ESTAB-
LISH  THE  INITIAL REGULATED RENT FOR ACCOMMODATIONS SUBJECT TO THIS LAW
WHICH BECOME VACANT.

S. 3704                            18

  S 13. Any reference in chapter 576 of the laws of  1974,  constituting
the emergency tenant protection act of nineteen seventy-four, the admin-
istrative  code of the city of New York, section 421-c of the real prop-
erty tax law or section 286 of the multiple dwelling law to "rent guide-
lines  board"  shall be deemed to refer to the rent board as provided in
this act. Any reference in chapter 576 of the laws of 1974, constituting
the emergency tenant protection act of nineteen seventy-four, or in  the
administrative  code  of the city of New York to "rent guidelines" shall
be deemed to refer to rent adjustments as provided in  this  act.    Any
reference in chapter 576 of the laws of 1974, constituting the emergency
tenant  protection act of nineteen seventy-four, the administrative code
of the city of New York, the real property tax law or the public housing
law to "renewal lease" shall be deemed to refer to the statutory tenancy
as provided in this act.
  S 14. If any provision of this act or the application  thereof  shall,
for any reason, be adjudged by any court of competent jurisdiction to be
invalid  or  unconstitutional, such judgment shall not affect, impair or
invalidate the remainder of this act, but shall be confined in its oper-
ation to the provision directly involved in the controversy in which the
judgment shall have been rendered; provided, however, that in the  event
the  entire  system  of  rent  control or stabilization shall be finally
adjudged invalid or unconstitutional by a court of  competent  jurisdic-
tion  because  of  the  operation  of  any  provision  of this act, such
provision shall  be  null,  void  and  without  effect,  and  all  other
provisions  of  this  act which can be given effect without such invalid
provision, as well as provisions  of  any  other  law  relating  to  the
control or stabilization of rent, as in effect prior to the enactment of
this  act  and  as otherwise amended by this act, shall continue in full
force and effect for the period of effectiveness set  forth  in  section
26-520  of the rent stabilization law of nineteen hundred sixty-nine and
in section 17 of chapter 576 of the laws of 1974, constituting the emer-
gency tenant protection act of nineteen seventy-four, as amended.
  S 15. This act shall take effect immediately, provided that:
  (a) the amendments to sections 26-509, 26-510 and 26-511 of  the  rent
stabilization law of nineteen hundred sixty-nine made by sections three,
four  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;
  (b)  the amendments to sections 4, 10 and 10-a of the emergency tenant
protection act of nineteen seventy-four made by sections eight, ten  and
eleven 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;
  (c)  the  rent  boards  as reconstituted pursuant to sections four and
eight of this act shall be appointed and  confirmed  within  sixty  days
after  the  effective date of this act and the methodological and proce-
dural changes made by sections four and eight of this act  shall  become
operational  on  October  1,  2015;  and  provided further that the rent
adjustments, if any, adopted in 2013 pursuant to the rent  stabilization
law  of  nineteen  hundred sixty-nine or the emergency tenant protection
act of nineteen seventy-four shall be effective for annual rent  adjust-
ments  commencing  on  January 1, 2016 and during the next twelve months
through December 31, 2016; and provided further that  the  rent  adjust-
ments, if any, adopted in subsequent years pursuant to the rent stabili-
zation  law  of  nineteen  hundred  sixty-nine  or  the emergency tenant
protection act of nineteen seventy-four shall be  effective  for  annual

S. 3704                            19

rent adjustments commencing on January first of each subsequent year and
during  the  next  succeeding  twelve months thereafter through December
thirty-first of each such year;
  (d)  the  amendments  to section 26-405 of the city rent and rehabili-
tation law made by section seven 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
  (e) the amendments to section 4 of the emergency housing rent  control
law  made by section twelve 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.