Senate Bill S498

                                 BILL NUMBER:  S498

 TITLE OF BILL :  An act in relation to requiring the division of
housing and community renewal to calculate the period of rent
reduction due to diminution of services from the date of actual
diminution of the services

 SUMMARY OF PROVISIONS :

Section One of the legislation states that notwithstanding any law,
rule, or regulation to the contrary, any rent reduction attributable
to diminution of services shall be calculated by the division of
housing and community renewal to be effective upon the date that the
diminution of service commenced, regardless of when that diminution of
services was reported to the division or the date upon which the
diminution of services was addressed by the division. Such rent
reduction shall be applicable to the entire period in which it is
found the services were not maintained in full.

 EXISTING LAW : New law.

 JUSTIFICATION :  This bill directs the Division of Housing and
Community Renewal (DHCR) that any rent reduction for diminution of
services should be effective for the entire period for which it is
found that the services have not been maintained.

              

Current DHCR policy with respect to rent reductions for regulated
tenants who have experienced a diminution of services in their
apartment or building is incompatible with the Rent Stabilization Code
(RSC), and runs the risk of denying tenants compensation to which they
are otherwise entitled.

The DHCR's "Fact Sheet 14: Rent Reductions for Decreased Services"
says that rent regulated tenants who experience a decrease in service
in an individual apartment or building-wide must first contact the
owner about the complaint in writing. If that does not resolve the
problem, the tenant may file a complaint with the DHCR. If the
evidence indicates that the owner failed to maintain required
services, the DHCR can issue a written order that directs the owner to
restore services and reduces the rent for the apartment.

It is DHCR's practice, and Fact Sheet 14 states, that "The effective
date for rent stabilized tenants is retroactive back to the first day
of the month following DHCR's service of the complaint on the owner.
For rent controlled tenants, the effective date is the first day of
the month after the order is issued." However, if tenants are denied
their contractually obligated services, their remedy should not be
limited to the period after DHCR has had time to serve notice on the
owner.

In fact, Section 2523.4(a)(1) of the RSC provides that "the DHCR shall
so reduce the rent for the period for which it is found that the owner
has failed to maintain required services," This bill would bring DHCR
practice into compliance with the RSC.

 LEGISLATIVE HISTORY :  S.4884-A of 2013-2014 (Hoylman): Died in
Cities

 FISCAL IMPLICATIONS : To be determined

 LOCAL FISCAL IMPLICATIONS :  To be determined

 EFFECTIVE DATE :  This act shall take effect immediately and shall
apply to all pending and future proceedings.