S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1349
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2017
                                ___________
 
 Introduced by M. of A. ROSENTHAL, GOTTFRIED, KAVANAGH, MOSLEY, PICHARDO,
   BICHOTTE, JOYNER, WALKER -- read once and referred to the Committee on
   Housing
 
 AN  ACT  to amend the emergency tenant protection act of nineteen seven-
   ty-four, in relation to limited-profit  housing  companies  and  other
   buildings or structures which received project-based rental assistance
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              
             
                          
                                                                            LBD04948-01-7
 A. 1349                             2
 
 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.
   § 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
 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 SEVENTEEN 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.
   §  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.
   § 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.