NY State Senate Bill 2017-S3193

Senate Bill S3193

2017-2018 Legislative Session

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to housing, construction and community development
Jan 20, 2017	referred to housing, construction and community development

co-Sponsors

2017-S3193 (ACTIVE) - Details

See Assembly Version of this Bill:: A5901
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2009-2010: S3854, A2558
2011-2012: S906, A3596
2013-2014: S3176, A3904
2015-2016: S2856, A3602
2019-2020: S1920, A725
2021-2022: S490, A8278
2023-2024: S129, A3977

2017-S3193 (ACTIVE) - Summary

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association; defines demolish.

2017-S3193 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3193

 TITLE OF BILL :  An act to amend the administrative code of the city
of New York, in relation to renewal of a lease under the stabilization
code

 PURPOSE OR GENERAL IDEA OF BILL :

The, purpose of this bill is to clarify the original intent of the
Rent Stabilization Law and to prohibit landlords from circumventing
the demolition provision included in the Rent Stabilization Law.
Landlords are attempting to circumvent rent stabilization by applying
for a demolition permit in order to move tenants out; when their real
purpose is to do a gut rehab so they can lease the apartments for
higher rents.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 of this bill constitutes a provision where the owner has
established to the satisfaction of the division of housing and
community renewal after a hearing that he or she intends in good faith
to demolish the building and has obtained a permit thereof from the
department of buildings.

Section 2 provides for an immediate effective date with
qualifications.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :

This bill would amend Subparagraph (a) of paragraph 9 of subdivision c
of section 26-511 of the administrative code of the city of New York,
constituting a provision of the rent stabilization law of nineteen
hundred sixty-nine.

 JUSTIFICATION :

It is in the State's economic and social interest that an adequate
supply of affordable housing be available. But as development
pressures continue to drive the competitive real estate market in New
York City and surrounding counties, there has been an increasing loss
of affordable housing units. Eager to increase profits on rent
stabilized housing units in particular, building owners have utilized
a variety of means to turn these units into more profitable luxury
housing or commercial units. The result has been that each year,
thousands of rent-stabilized units are permanently removed from the
housing stock. This trend continues as owners seek new ways to
manipulate the letter and spirit of the law in order to more
expeditiously eliminate the rent stabilized units in a building. This
bill addresses one method by which owners axe increasingly attempting
to get rid of rent-stabilized housing. While the Legislature intended
that the demolition provision of the Rent Stabilization law allow room
for owners to demolish old, dilapidated and dangerous housing in order
to replace it with new, safe housing, some owners are attempting to
redefine demolition as simple renovations where entire floors are left
intact, outer walls are untouched, or major structural elements remain
in place. Such uses of the term "demolition" are inconsistent with
both its common meaning and the meaning that was intended by the
Legislature. This bill will clarify the definition of "demolition",
making it consistent with its common and intended definitions.
Accordingly, it will be clear that owners shall not be permitted to
eliminate rent-stabilized housing units by manipulating the demolition
provision in this manner.

 FISCAL IMPLICATIONS :

To be determined.
 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to any action
or proceeding pending in any court and to any application, complaint,
or proceeding pending before an administrative agency on such
effective date, as well as to any action or proceeding commenced
thereafter; provided, however that the amendments to subparagraph (a)
of paragraph 9 of subdivision c of section 26-511 of the rent
stabilization law of nineteen hundred sixty-nine made by section one
of this act shall expire of such law as provided under section 26-520
of the administrative code of the city of New York.

2017-S3193 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3193
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sens. KRUEGER, AVELLA, MONTGOMERY, PERKINS -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Housing, Construction and Community Development
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation to renewal of a lease under the stabilization code

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (a) 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)  (1)  where [he or she] THE OWNER HAS ESTABLISHED TO THE SATISFAC-
 TION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, AFTER  A  HEARING
 AT  WHICH  ALL PARTIES MAY PRESENT EVIDENCE THAT THE SUBJECT BUILDING IS
 IN A SUBSTANDARD OR SERIOUSLY DETERIORATED CONDITION, AND THAT THE OWNER
 intends in good faith to demolish  the  building  and  [has  obtained  a
 permit therefor from the department of buildings] SUBMITS PROOF PRIOR TO
 FILING  THE  APPLICATION  WITH  THE  DIVISION  OF  HOUSING AND COMMUNITY
 RENEWAL THAT PLANS AND IF  POSSIBLE,  THE  NECESSARY  PERMITS,  FOR  THE
 UNDERTAKING  HAVE  BEEN  APPROVED BY AND OBTAINED FROM THE DEPARTMENT OF
 BUILDINGS.  SUCH APPLICATION SHALL BE FILED AT LEAST NINETY  DAYS  PRIOR
 TO  THE  EXPIRATION  OF THE LEASE TERM; FOR THE PURPOSE OF THIS SUBPARA-
 GRAPH, "DEMOLISH" MEANS THE COMPLETE  RAZING  OF  THE  ENTIRE  BUILDING,
 INCLUDING  ALL EXTERIOR WALLS, IN ORDER TO CONSTRUCT A NEW BUILDING WITH
 THE SAME OR GREATER NUMBER OF RENTAL HOUSING UNITS;
   (2) THE  ORDER  GRANTING  THE  OWNER'S  DEMOLITION  APPLICATION  SHALL
 PROVIDE  THAT  THE OWNER MUST, AT THE TENANT'S OPTION, EITHER: (I) RELO-
 CATE THE TENANT TO AN EQUIVALENT OR  SUPERIOR  RENT  STABILIZED  HOUSING
 ACCOMMODATION  IN  A  CLOSELY  PROXIMATE  AREA,  OR IF A NEW RESIDENTIAL
 BUILDING IS BEING CONSTRUCTED ON THE SITE PROVIDE THE TENANT WITH  SUIT-
 ABLE  INTERIM HOUSING AT NO ADDITIONAL COST UNTIL A UNIT IS AVAILABLE IN
 THE NEW BUILDING; PROVIDE THAT THE AMOUNT OF RENT CHARGED FOR  THE  UNIT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08764-01-7

 S. 3193                             2
 
 SHALL  BE  AT  THE  SAME  OR LOWER LEGAL REGULATED RENT; AND PROVIDE THE
 TENANT, IN ADDITION TO REASONABLE MOVING EXPENSES,  PAYMENT  OF  A  FIVE
 THOUSAND  DOLLAR  STIPEND,  PROVIDED THE TENANT VACATES ON OR BEFORE THE
 VACATE  DATE  REQUIRED BY THE FINAL ORDER; OR (II) PROVIDE RELOCATION OF
 THE TENANT TO A SUITABLE HOUSING ACCOMMODATION AT A RENT  IN  EXCESS  OF
 THAT FOR THE SUBJECT HOUSING ACCOMMODATION; PROVIDE THE TENANT, IN ADDI-
 TION TO REASONABLE MOVING EXPENSES, A STIPEND EQUAL TO THE DIFFERENCE OF
 THE RENT CHARGED AT THE HOUSING ACCOMMODATION BEING VACATED AND THE RENT
 CHARGED FOR THE HOUSING ACCOMMODATION TO WHICH THE TENANT IS RELOCATING,
 MULTIPLIED  BY  SEVENTY-TWO  MONTHS,  PROVIDED  THE TENANT VACATES ON OR
 BEFORE THE VACATE DATE REQUIRED BY THE FINAL ORDER;  OR  (III)  PAY  THE
 TENANT  A  STIPEND  WHICH  SHALL  BE THE DIFFERENCE BETWEEN THE TENANT'S
 CURRENT RENT AND AN AMOUNT TO BE CALCULATED USING THE DEMOLITION STIPEND
 CHART, CREATED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL,  MULTI-
 PLIED BY SEVENTY-TWO MONTHS; or
   §  2.  This  act  shall take effect immediately and shall apply to any
 tenant in possession on or after such effective date and to  any  action
 or proceeding pending in any court and to any application, complaint, or
 proceeding  pending  before  an  administrative agency on such effective
 date, as well as to  any  action  or  proceeding  commenced  thereafter;
 provided, however that the amendments to subparagraph (a) of paragraph 9
 of  subdivision  c  of  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.

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Senate Bill S3193

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Sponsored By

Liz Krueger