The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6527

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              May 31, 2017
                               ___________

Introduced  by  Sen. KRUEGER -- 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 emergency tenant protection act of nineteen seven-
  ty-four and the administrative code  of  the  city  of  New  York,  in
  relation to the regulation of rents

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  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 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; AND FURTHER PROVIDED
THAT SUCH INCREASE TO THE PREVIOUSLY ESTABLISHED  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 REGU-
LATED RENT IF THE LAST VACANCY LEASE COMMENCED LESS THAN FOUR YEARS AGO;
AND TWENTY PERCENT OF THE PREVIOUS LEGAL  REGULATED  RENT  IF  THE  LAST
VACANCY  LEASE  COMMENCED  FOUR OR MORE YEARS AGO. 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06860-03-7

S. 6527                             2

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;  AND  FURTHER  PROVIDED
THAT  SUCH  INCREASE  TO THE PREVIOUSLY ESTABLISHED 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  REGU-
LATED RENT IF THE LAST VACANCY LEASE COMMENCED LESS THAN FOUR YEARS AGO;
AND  TWENTY  PERCENT  OF  THE  PREVIOUS LEGAL REGULATED RENT IF THE LAST
VACANCY LEASE COMMENCED FOUR OR MORE YEARS AGO.  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
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.