Senate Bill S9137

                                
 
BILL NUMBER: S9137

SPONSOR: AVELLA
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to requiring landlords to notify tenants when applying for a major capi-
tal improvement tax abatement

 
PURPOSE:

The purpose of this bill is to require landlords to notify tenants when
applying for a major capital improvement tax abatement.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill amends Section 467-I of the real property law by
adding new subdivision 2-a, which states that any owner of an eligible
building that applies for such tax abatement shall notify the tenants of
the building of the owner's application within seven days of submitting
said application.

Section 2 of this bill states that this act shall take effect immediate-
              

ly after it shall have become a law.

 
JUSTIFICATION:

When owners make improvements or installations to a building subject to
the rent stabilization or rent control laws, they can apply to the Divi-
sion of Housing and Community Renewal for approval to raise the rents of
the tenants based on the actual, verified cost of improvement or instal-
lation. This is generally referred to as a Major Capital Improvement
(MCI) appeal.

While the MCI program can be a useful way to ensure that tenants in rent
stabilized or rent controlled units have good living conditions, too
often MCI appeals are manipulated to pay for ordinary repairs for a
building rather than substantial improvements.

As such, it is imperative to require landowners to give tenants notice
of the filing of an MCI application. This notice will allow tenants to
see the details of the planned improvements and give them the necessary
time to potentially appeal or oppose these improvements.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately after it shall have become a law.