S T A T E   O F   N E W   Y O R K
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                                   5394
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2017
                                ___________
 
 Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
   Committee on Housing
 
 AN ACT to amend the real property law, in relation to notice  to  market
   rate tenants of lease expiration (Part A); to amend the administrative
   code  of the city of New York, in relation to eliminating fuel pass-a-
   long charges for occupants of rent controlled  housing  accommodations
   (Part B); to amend the administrative code of the city of New York, in
   relation  to  reducing the amount of maximum rent increase collectible
   in one year (Part C); and to amend the administrative code of the city
   of New York and the emergency tenant protection act of nineteen seven-
   ty-four, in relation to making conforming technical  changes;  and  to
   repeal  paragraph  13  of  subdivision  a of section 5 of section 4 of
   chapter 576 of the laws of  1974  constituting  the  emergency  tenant
   protection  act of nineteen seventy-four, paragraph (n) of subdivision
   2 of section 2 of chapter 274 of the laws of  1946,  constituting  the
   emergency  housing rent control law, and section 26-504.2 and subpara-
   graph (k) of paragraph 2 of subdivision e of  section  26-403  of  the
   administrative  code  of  the  city  of  New York, relating to vacancy
   decontrol (Part D)
 
   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
 which are necessary to implement the state fiscal plan for the 2017-2018
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified  as Parts A through D. 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, includ-
 ing the effective date of the Part, which makes a 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09463-01-7
              

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 Part in which it is found. Section three of  this  act  sets  forth  the
 general effective date of this act.
 
                                  PART A
 
   Section 1. Section 232-a of the real property law, as amended by chap-
 ter 312 of the laws of 1962, is amended to read as follows:
   §  232-a. Notice to terminate monthly tenancy or tenancy from month to
 month, AND NOTICE TO TERMINATE NON-REGULATED  TENANCY  OR  OFFER  A  NEW
 LEASE, in the city of New York.
   1.  No  monthly tenant, or tenant from month to month, shall hereafter
 be removed from any lands or buildings in the city of New  York  on  the
 grounds  of holding over his term unless at least thirty days before the
 expiration of the term the landlord or his agent serve upon the  tenant,
 in  the same manner in which a notice of petition in summary proceedings
 is now allowed to be served by law, a notice in writing  to  the  effect
 that  the  landlord  elects to terminate the tenancy and that unless the
 tenant removes from such premises on the day on which his  term  expires
 the  landlord  will  commence  summary  proceedings under the statute to
 remove such tenant therefrom.
   2. EVERY LANDLORD IN THE CITY OF NEW YORK  SHALL  GIVE  THE  FOLLOWING
 NOTICE,  IN  WRITING AND BY MAIL OR PERSONAL DELIVERY, TO EVERY RESIDEN-
 TIAL TENANT WHOSE LEASE IS NOT SUBJECT TO  REGULATION  PURSUANT  TO  THE
 LOCAL   EMERGENCY   HOUSING  RENT  CONTROL  LAW,  THE  EMERGENCY  TENANT
 PROTECTION ACT OF NINETEEN SEVENTY-FOUR, THE RENT STABILIZATION  LAW  OF
 NINETEEN HUNDRED SIXTY-NINE OR THE CITY RENT AND REHABILITATION LAW. THE
 LANDLORD  SHALL  NOTIFY THE TENANT NAMED IN THE EXPIRING LEASE, NOT MORE
 THAN ONE HUNDRED FIFTY DAYS AND NOT LESS THAN NINETY DAYS PRIOR  TO  THE
 END  OF THE TENANT'S LEASE TERM, OF THE EXPIRATION OF THE LEASE TERM AND
 WHETHER THE LANDLORD WILL OFFER A NEW LEASE AND IF SO UPON WHAT TERMS OR
 WHETHER THE LANDLORD WILL TERMINATE THE LEASE. IF THE LANDLORD OFFERS  A
 NEW  LEASE,  THE  LANDLORD SHALL GIVE SUCH TENANT A PERIOD OF SIXTY DAYS
 FROM THE DATE OF SERVICE OF SUCH NOTICE TO ACCEPT THE OFFER AND SIGN THE
 NEW LEASE. IF A LANDLORD FAILS TO  GIVE  THE  NOTICE  REQUIRED  BY  THIS
 SUBDIVISION,  THE  TENANT WILL BE ENTITLED TO REMAIN IN OCCUPANCY FOR UP
 TO NINETY DAYS, AT THE TENANT'S OPTION, AFTER EXPIRATION  OF  THE  LEASE
 TERM.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
 
                                  PART B
 
   Section 1.  The administrative code of the city of New York is amended
 by adding a new section 26-407.1 to read as follows:
   § 26-407.1 FUEL PASS-ALONG TO TENANTS UNDER RENT  CONTROL  PROHIBITED.
 NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE, REGULATION, CHARTER OR
 ADMINISTRATIVE CODE, TENANTS OF HOUSING ACCOMMODATIONS WHICH ARE SUBJECT
 TO  RENT  CONTROL  UNDER  THIS  CHAPTER  SHALL  NOT BE SUBJECT TO A FUEL
 ADJUSTMENT OR PASS-ALONG INCREASE IN RENT AND ANY SUCH INCREASE TO  SUCH
 TENANT SHALL BE NULL AND VOID.
   §  2.    This  act  shall  take  effect on the first of September next
 succeeding the date on which it shall have become a law;  provided  that
 the addition of section 26-407.1 to 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

 A. 5394                             3
 
 subdivision 3 of section 1 of the local emergency housing  rent  control
 act.
 
                                  PART C

   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 more than
 [seven  and  one-half percentum] THREE PERCENT increase from a tenant in
 occupancy on such date in any one year period,  provided  however,  that
 where  the  period  for  which the rent is established exceeds one year,
 regardless of how the collection thereof is averaged over  such  period,
 the  rent  the  landlord  shall  be entitled to receive during the first
 twelve months shall not be increased by more than  [seven  and  one-half
 percentum]  THREE  PERCENT  over the previous rent and additional annual
 rents shall not exceed [seven and one-half percentum] THREE  PERCENT  of
 the rent paid during the previous year. Notwithstanding any of the fore-
 going  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), (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 subdi-
 vision g of this section shall be excluded from the  maximum  rent  when
 computing  the  [seven  and  one-half  percentum] THREE PERCENT increase
 authorized by this paragraph five.  Where  a  housing  accommodation  is
 vacant on January first, nineteen 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. This act shall take effect immediately; provided that the  amend-
 ments  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.
 
                                  PART D
 
   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.

 A. 5394                             4
 
   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, 2013
 and the effective date of this act for less  than  $5,000.00  per  month
 regardless  of  any subsequent payment of a higher monthly rent, or were
 located within the city of New York and were rented to a tenant  between
 January  1,  2013  and  the  effective  date  of  this act for less than
 $9,000.00 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.
   § 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

 A. 5394                             5

 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
 expires and shall not affect the expiration of such act as  provided  in
 section 17 of chapter 576 of the laws of 1974.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Parts A through D of this act shall be
 as specifically set forth in the last section of such Parts.