S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5202
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Housing
 
 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); Intentionally omitted (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 emergency 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  nineteen  seventy-four,  in  relation  to  making
   conforming  technical  changes; and to repeal paragraph 13 of subdivi-
   sion 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 subparagraph (k) of paragraph 2 of subdivi-
   sion 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00022-02-7

 A. 5202                             2
 
   the  emergency  tenant  protection  act  of  nineteen seventy-four, in
   relation to hardship applications (Part I); 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 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 admin-
   istrative 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.
   §  2.  This  act  shall  be  known  and  may  be  cited as the "Tenant
 Protection Act of 2017".
 
                                  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
 laboratory diagnostic techniques, and which are expected to be permanent
 and  which  prevent  the tenant from engaging in any substantial gainful
 employment; or
   § 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:

 A. 5202                             3
 
   (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
   §  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
 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

 A. 5202                             4
 
 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.
   § 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
   § 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
 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

 A. 5202                             5
 
 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  16-a
 of  part  A  of  chapter  20  of the laws of 2015, 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. However,
 where the amount charged and paid by the prior tenant pursuant to  para-
 graph  fourteen  of  this subdivision, was less than the legal regulated
 rent, such increase to the legal regulated rent shall not  exceed:  five
 percent  of  the previous legal regulated rent if the last vacancy lease
 commenced less than two years ago; ten percent  of  the  previous  legal
 regulated rent if the last vacancy lease commenced less than three years
 ago;  fifteen  percent  of the previous legal regulated rent if the last
 vacancy lease commenced less than four years ago; twenty percent of  the
 previous  legal  regulated rent if the last vacancy lease commenced four
 or more years ago. 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 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 accommodation became subject to  this  chapter,  the  number  of
 years  that such housing accommodation has been subject to this chapter.
 Provided that if the previous legal regulated rent was less  than  three
 hundred dollars the total increase shall be as calculated above plus one
 hundred dollars per month. Provided, further, that if the previous legal
 regulated  rent was at least three hundred dollars and no more than five
 hundred dollars in no event shall the total increase  pursuant  to  this
 paragraph  be  less  than  one  hundred dollars per month. Such increase
 shall be [in lieu of any allowance authorized for the one  or  two  year
 renewal  component  thereof,  but  shall  be]  in  addition to any other
 increases authorized pursuant to this chapter  including  an  adjustment
 based upon a major capital improvement, or a substantial modification or
 increase of dwelling space or services, or installation of new equipment
 or  improvements  or  new furniture or furnishings provided in or to the
 housing accommodation pursuant to this section. The increase  authorized

 A. 5202                             6
 
 in  this  paragraph  may  not  be  implemented more than one time in any
 calendar year, notwithstanding the number of vacancy leases entered into
 in such year, 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.
   §  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 16-b of part A of chapter
 20 of the laws of 2015, 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. However, where the amount
 charged and paid by the prior tenant pursuant to paragraph  fourteen  of
 this  subdivision, was less than the legal regulated rent, such increase
 to the legal regulated rent shall not exceed: five percent of the previ-
 ous legal regulated rent if the last vacancy lease commenced  less  than
 two  years  ago; ten percent of the previous legal regulated rent if the
 last vacancy commenced less than three years ago; fifteen percent of the
 previous legal regulated rent if the last vacancy lease  commenced  less
 than four years ago; twenty percent of the previous legal regulated rent
 if the last vacancy lease commenced four or more years ago. 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 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
 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

 A. 5202                             7
 
 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, 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.
   § 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
   § 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.

 A. 5202                             8
 
   § 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
 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.
   § 6. Subparagraph 5 of 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:
   (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
   § 7. This act shall take effect immediately; provided that:

 A. 5202                             9

   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
 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.
   § 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:

 A. 5202                            10
 
   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.
 
                                  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

 A. 5202                            11
 
 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.
   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

 A. 5202                            12

 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
 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.
   § 2. This act shall take effect immediately; provided, however, that:

 A. 5202                            13
 
   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 and reversion of such paragraph
 and shall be deemed to expire therewith.
 
                                  PART E
 
   Intentionally omitted
 
                                  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;
   (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;

 A. 5202                            14
 
   (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.
   § 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.
   §  3.  The  administrative  code of the city of New York is amended by
 adding a new section 26-504.4 to read as follows:
   § 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.
   § 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:
   §  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-
 MODATION  SUBJECT TO THE PROVISIONS OF THIS ACT AND OF WHICH SUCH PARENT
 IS A TENANT.
   § 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

 A. 5202                            15
 
   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.
   § 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.
   §  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.
   §  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.
   § 5. Section 26-504.2 of the administrative code of the  city  of  New
 York is REPEALED.
   §  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
 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, 2015
 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, 2015 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,  2016  or,  if  no rent was paid for such accommodation on
 December 31, 2016, the most recent actual rent paid by a tenant for such
 accommodation prior to December 31, 2016, subject to further  adjustment
 in accordance with applicable provisions of law.

 A. 5202                            16
 
   §  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 12 of part A
 of chapter 20 of the laws of 2015, 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. [Such housing accommodation shall  be
 excluded  from  the provisions of this code pursuant to section 26-504.2
 of this chapter when, subsequent to vacancy: (i)  such  legal  regulated
 rent prior to vacancy is two thousand five hundred dollars per month, or
 more,  for any housing accommodation that is or becomes vacant after the
 effective date of the rent act of 2011 but prior to the  effective  date
 of  the  rent act of 2015 or (ii) such legal regulated rent is two thou-
 sand seven hundred dollars per month or more, provided, however that  on
 January  1,  2016,  and annually thereafter, the maximum legal regulated
 rent for this deregulation threshold  shall  be  adjusted  by  the  same
 percentage as the most recent one year renewal adjustment as adjusted by
 the  relevant  rent guidelines board, for any housing accommodation that
 is or becomes vacant on or after the rent act of 2015.]
   § 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 11 of part A of chapter  20
 of the laws of 2015, 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.  [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 when subsequent to vacancy:
 (i)  such  legal regulated rent is two thousand five hundred dollars per
 month, or more, for any  housing  accommodation  that  is,  or  becomes,
 vacant after the effective date of the rent act of 2011 but prior to the
 effective date of the rent act of 2015 or (ii) such legal regulated rent
 is  two thousand seven hundred dollars per month or more for any housing
 accommodation that is or becomes vacant on or  after  the  rent  act  of
 2015;  starting on January 1, 2016, and annually thereafter, the maximum
 legal regulated rent for this  deregulation  threshold,  shall  also  be
 increased  by  the  same  percent  as  the  most recent one year renewal
 adjustment, adopted by the applicable rent guidelines board pursuant  to
 the rent stabilization law.]
   § 9. This act shall take effect immediately; provided, however, 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  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

 A. 5202                            17
 
 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 11 of part A of chapter 20
 of the laws of 2015, 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. [Such  housing  accommo-
 dation  shall  be  excluded  from the provisions of this act pursuant to
 paragraph thirteen of subdivision a of section five  of  this  act  when
 subsequent  to  vacancy:   (i) such legal regulated rent is two thousand
 five hundred dollars per month, or more, for any  housing  accommodation
 that  is, or becomes, vacant after the effective date of the rent act of
 2011 but prior to the effective date of the rent act  of  2015  or  (ii)
 such  legal  regulated  rent  is  two thousand seven hundred dollars per
 month or more for any housing accommodation that is or becomes vacant on
 or after the rent act of 2015; starting on January 1, 2016, and annually
 thereafter, the maximum  legal  regulated  rent  for  this  deregulation
 threshold,  shall  also  be  increased  by  the same percent as the most
 recent one year renewal  adjustment,  adopted  by  the  applicable  rent
 guidelines board pursuant to the rent stabilization law.]
   §  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 12 of part A
 of chapter 20 of the laws of 2015, 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. [Such  housing  accommo-
 dation  shall  be  excluded from the provisions of this code pursuant to
 section 26-504.2 of this chapter when, subsequent to vacancy:  (i)  such
 legal  regulated  rent  prior  to  vacancy  is two thousand five hundred
 dollars per month, or more, for any housing  accommodation  that  is  or
 becomes  vacant  after  the  effective  date of the rent act of 2011 but
 prior to the effective date of the rent act of 2015 or (ii)  such  legal
 regulated  rent is two thousand seven hundred dollars per month or more,
 provided, however that on January 1, 2016, and annually thereafter,  the
 maximum  legal  regulated  rent for this deregulation threshold shall be

 A. 5202                            18

 adjusted by the same percentage as the  most  recent  one  year  renewal
 adjustment  as  adjusted  by the relevant rent guidelines board, for any
 housing accommodation that is or becomes vacant on or after the rent act
 of 2015.]
   §  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

 A. 5202                            19
 
 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.
   § 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

 A. 5202                            20
 
 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.
   § 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
 section 31 of part A of chapter 20 of the laws of 2015,   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)
 for any order of the commissioner issued after the effective date of the
 rent  act  of 2015 shall be in an amount sufficient to amortize the cost
 of the improvements pursuant to this subparagraph (g) over an eight-year
 period for buildings with thirty-five or fewer  units  or  a  nine  year
 period  for  buildings  with more than thiry-five units,]; PROVIDED THAT
 THE COMMISSIONER FINDS THAT SUCH  IMPROVEMENTS  ARE  DEEMED  DEPRECIABLE
 UNDER  THE  INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR

 A. 5202                            21
 
 THE  OPERATION,  PRESERVATION  OR  MAINTENANCE  OF  THE  STRUCTURE.  THE
 INCREASE  PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A
 MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPARATELY DESIGNATED
 AND  BILLED  AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY OTHER ADJUSTMENT
 TO THE MAXIMUM RENT. THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL  BE
 AN  AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT DIVIDED BY  EIGHTY-FOUR,
 DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING, AND THEN  MULTIPLIED  BY
 THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE 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
   § 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.
   § 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.
   §  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-

 A. 5202                            22
 
 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.
   § 5. Paragraph 6 of subdivision c of section 26-511 of the administra-
 tive code of the city of New York, as amended by section 29 of part A of
 chapter 20 of the laws of 2015,  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 an eight-year period for a building  with  thir-
 ty-five  or  fewer  housing  accommodations, or a nine-year period for a
 building with more than  thirty-five  housing  accommodations,  for  any

 A. 5202                            23

 determination  issued  by  the division of housing and community renewal
 after the effective date of the  rent  act  of  2015,  based  upon  cash
 purchase price exclusive of interest or service charges].  Notwithstand-
 ing  anything  to  the  contrary  contained herein, no hardship increase
 granted pursuant to this paragraph shall, when added to the annual gross
 rents, as determined by the commissioner, exceed the  sum  of,  (i)  the
 annual  operating expenses, (ii) an allowance for management services as
 determined by  the  commissioner,  (iii)  actual  annual  mortgage  debt
 service  (interest  and  amortization)  on its indebtedness to a lending
 institution, an insurance company, a retirement  fund  or  welfare  fund
 which is operated under the supervision of the banking or insurance laws
 of  the  state of New York or the United States, and (iv) eight and one-
 half percent of that portion of the fair market value  of  the  property
 which  exceeds  the unpaid principal amount of the mortgage indebtedness
 referred to in subparagraph (iii) of this paragraph. Fair  market  value
 for  the  purposes of this paragraph shall be six times the annual gross
 rent. The collection of any increase in  the  stabilized  rent  for  any
 apartment pursuant to this paragraph shall not exceed six percent in any
 year from the effective date of the order granting the increase over the
 rent  set  forth  in the schedule of gross rents, with collectability of
 any dollar excess above said sum to be spread forward in similar  incre-
 ments  and  added to the stabilized rent as established or set in future
 years;
   § 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

 A. 5202                            24
 
   (B) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE  FIVE  YEARS
 PRIOR  TO  THE  IMPROVEMENT,  BEEN  FOUND TO HAVE HARASSED OR UNLAWFULLY
 EVICTED TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY  UNDER
 THE  PENAL  LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR
 LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.
   UPON  RECEIPT  OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED FOR HEREIN,
 THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE  TENANTS
 IN  OCCUPANCY  IN SUCH BUILDINGS WITH SUCH INFORMATION.  THE DIVISION OF
 HOUSING AND COMMUNITY RENEWAL SHALL, IN ADDITION,  IMPLEMENT  PROCEDURES
 INCLUDING,  BUT  NOT  LIMITED TO, ELICITING TENANT COMMENTS TO DETERMINE
 WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
 TORILY COMPLETED. NO  MAJOR  CAPITAL  IMPROVEMENT  RENT  INCREASE  SHALL
 BECOME  EFFECTIVE  UNTIL  ANY DEFECTIVE OR DEFICIENT REHABILITATION WORK
 HAS BEEN CURED.
   (6-C) THE INCREASE PERMITTED FOR SUCH  CAPITAL  IMPROVEMENT  SHALL  BE
 COLLECTED  AS  A MONTHLY SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL
 BE SEPARATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE  COMPOUNDED
 BY  ANY  ANNUAL  ADJUSTMENT OF THE LEVEL OF FAIR RENT PROVIDED FOR UNDER
 SUBDIVISION B OF SECTION 26-510 OF THIS LAW.  THE SURCHARGE ALLOCABLE TO
 EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF  THE  IMPROVEMENT
 DIVIDED  BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING,
 AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH  APARTMENT;  PROVIDED
 THAT  THE  SURCHARGE ALLOCABLE TO ANY APARTMENT, IN ANY ONE YEAR MAY NOT
 EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT  COLLECTED  BY
 THE  OWNER  FOR  SUCH  APARTMENT  AS  SET FORTH IN THE SCHEDULE OF GROSS
 RENTS.  ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED  FORWARD  AND
 COLLECTED  IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDI-
 TIONAL SIX PERCENT IN ANY ONE YEAR  PERIOD  UNTIL  THE  TOTAL  SURCHARGE
 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.
   § 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 section 30 of part A of
 chapter 20 of the laws of 2015, 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 an eight-year period for a building with
 thirty-five or fewer housing accommodations, or a nine-year period for a
 building  with  more  than  thirty-five  housing accommodations, for any
 determination issued by the division of housing  and  community  renewal
 after the effective date of the rent act of 2015, or]; 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

 A. 5202                            25
 
 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
   §  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.
   § 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-

 A. 5202                            26
 
 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.
   §  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, subparagraph 7 as amended by section
 32 of part A of chapter 20 of the laws of 2015, is amended  to  read  as
 follows:
   No application for adjustment of maximum rent based upon a sales price
 valuation  shall  be filed by the landlord under this subparagraph prior
 to six months from the date of such sale of the property.  In  addition,
 no  adjustment  ordered  by  the  commission based upon such sales price
 valuation shall be effective prior to one year from  the  date  of  such
 sale.  Where,  however,  the assessed valuation of the land exceeds four
 times the assessed valuation of the buildings  thereon,  the  commission
 may determine a valuation of the property equal to five times the equal-
 ized  assessed  valuation  of  the  buildings,  for the purposes of this
 subparagraph. The commission may make a determination that the valuation
 of the property is an amount  different  from  such  equalized  assessed
 valuation  where  there  is  a  request for a reduction in such assessed
 valuation currently pending; or where there has been a reduction in  the
 assessed valuation for the year next preceding the effective date of the
 current  assessed  valuation  in effect at the time of the filing of the
 application. Net annual return shall be the amount by which  the  earned
 income  exceeds  the operating expenses of the property, excluding mort-
 gage interest and amortization, and excluding  allowances  for  obsoles-
 cence  and  reserves, but including an allowance for depreciation of two
 per centum of the value of the buildings exclusive of the land,  or  the
 amount  shown  for  depreciation of the buildings in the latest required
 federal income tax return, whichever is lower; provided,  however,  that
 (1)  no  allowance  for  depreciation of the buildings shall be included
 where the buildings have been fully depreciated for federal  income  tax
 purposes  or  on the books of the owner; or (2) the landlord who owns no
 more than four rental units within the state has not been fully  compen-
 sated  by  increases  in  rental income sufficient to offset unavoidable
 increases in property taxes, fuel, utilities, insurance and repairs  and
 maintenance, excluding mortgage interest and amortization, and excluding
 allowances  for  depreciation,  obsolescence  and  reserves,  which have
 occurred since the federal date determining the maximum rent or the date
 the property was acquired by the present owner, whichever is  later;  or
 (3) the landlord operates a hotel or rooming house or owns a cooperative
 apartment  and  has  not  been  fully compensated by increases in rental
 income from the controlled housing accommodations sufficient  to  offset
 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

 A. 5202                            27
 
 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
 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; which for any order of the
 commissioner issued after the effective date of the rent act of 2015 the
 cost of such improvement shall be amortized over  an  eight-year  period
 for  buildings with thirty-five or fewer units or a nine year period for
 buildings with more  than  thiry-five  units,  or];  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  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

 A. 5202                            28
 
 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.
   § 11. 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, 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,

 A. 5202                            29
 
 the  rent  the  landlord  shall  be entitled to receive during the first
 twelve months shall not be increased by more than THE LESSER  OF  EITHER
 seven and one-half percentum OR AN AVERAGE OF THE PREVIOUS FIVE YEARS OF
 ONE-YEAR  RENT INCREASES ON RENT STABILIZED APARTMENTS AS ESTABLISHED BY
 THE RENT GUIDELINES BOARD, PURSUANT TO SUBDIVISION B OF  SECTION  26-510
 OF THIS TITLE, over the previous rent [and]. ANY additional annual rents
 shall not exceed THE LESSER OF EITHER seven and one-half percentum OR AN
 AVERAGE  OF  THE  PREVIOUS FIVE YEARS OF ONE-YEAR RENT INCREASES ON RENT
 STABILIZED APARTMENTS AS  ESTABLISHED  BY  THE  RENT  GUIDELINES  BOARD,
 PURSUANT  TO  SUBDIVISION B OF SECTION 26-510 OF THIS TITLE, of the rent
 paid during the previous year.  Notwithstanding  any  of  the  foregoing
 limitations  in  this paragraph five, maximum rent shall be increased if
 ordered by the agency pursuant to subparagraphs (d), (e), (f), (g), (h),
 (i), (k), [(l),] OR (m) [or (n)] of paragraph one of  subdivision  g  of
 this  section.  [Commencing January first, nineteen hundred eighty, rent
 adjustments pursuant to subparagraph (n) of paragraph one of subdivision
 g of this section shall be excluded from the maximum rent when computing
 the seven and one-half percentum increase authorized by  this  paragraph
 five.]  Where  a housing accommodation is vacant on January first, nine-
 teen hundred seventy-two, or  becomes  vacant  thereafter  by  voluntary
 surrender of possession by the tenants, the maximum rent established for
 such accommodations may be collected.
   §  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.
   §  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.
   § 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:
   § 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.
   §  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

 A. 5202                            30
 
 rents and evictions continues, as provided in subdivision 3 of section 1
 of the local emergency housing rent control act.
   § 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.
   §  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.