S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6118
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 28, 2019
                                ___________
 
 Introduced by M. of A. FITZPATRICK, TAGUE -- Multi-Sponsored by -- M. of
   A. MANKTELOW -- read once and referred to the Committee on Housing
 
 AN  ACT to amend the administrative code of the city of New York and the
   emergency tenant protection act of nineteen seventy-four, in  relation
   to providing an alternative hardship allowance

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The opening paragraph of subparagraph (a) of paragraph 1 of
 subdivision g of section 26-405 of the administrative code of  the  city
 of New York is amended to read as follows:
   The  rental  income from a property yields a net annual return of less
 than [six] EIGHT AND ONE-HALF per centum of the valuation of the proper-
 ty.
   § 2. Subdivision c of section 26-511 of the administrative code of the
 city of New York is amended by adding a new paragraph  6-b  to  read  as
 follows:
   (6-B)  PROVIDES  CRITERIA  WHEREBY  AS  AN ALTERNATIVE TO THE HARDSHIP
 APPLICATION PROVIDED UNDER PARAGRAPH SIX  OR  PARAGRAPH  SIX-A  OF  THIS
 SUBDIVISION  OWNERS OF BUILDINGS ACQUIRED BY THE SAME OWNER OR A RELATED
 ENTITY OWNED BY THE SAME PRINCIPALS THREE YEARS PRIOR  TO  THE  DATE  OF
 APPLICATION  MAY  APPLY  TO  THE STATE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL FOR INCREASES IN EXCESS OF THE  LEVEL  OF  APPLICABLE  GUIDELINE
 INCREASES  ESTABLISHED  UNDER THIS LAW BASED ON A FINDING BY THE COMMIS-
 SIONER OF HOUSING AND COMMUNITY RENEWAL THAT  SUCH  GUIDELINE  INCREASES
 ARE  NOT  SUFFICIENT TO ENABLE THE OWNER TO MAINTAIN A NET ANNUAL RETURN
 OF EIGHT AND ONE-HALF PER CENTUM OF THE VALUATION OF THE PROPERTY.  SUCH
 VALUATION SHALL BE THE CURRENT ASSESSED VALUATION, WHICH IS IN EFFECT AT
 THE TIME OF THE FILING OF THE APPLICATION FOR AN ADJUSTMENT  UNDER  THIS
 PARAGRAPH  PROPERLY  ADJUSTED  BY  APPLYING THERETO THE RATIO WHICH SUCH
 ASSESSED VALUATION BEARS TO THE FULL  VALUATION  AS  DETERMINED  BY  THE
 COMMISSIONER  OF  TAXATION AND FINANCE.   NET ANNUAL RETURN SHALL BE THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06172-01-9

 A. 6118                             2
 
 AMOUNT BY WHICH THE EARNED INCOME EXCEEDS THE OPERATING EXPENSES OF  THE
 PROPERTY,  EXCLUDING  MORTGAGE  INTEREST AND AMORTIZATION, AND EXCLUDING
 ALLOWANCES FOR OBSOLESCENCE 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 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.
   § 3. Subdivision d of section 6 of section 4 of  chapter  576  of  the
 laws  of 1974, constituting the emergency tenant protection act of nine-
 teen seventy-four, is amended by adding a new paragraph  6  to  read  as
 follows:
   (6) AS AN ALTERNATIVE TO THE HARDSHIP APPLICATION PROVIDED UNDER PARA-
 GRAPH  FOUR  OR FIVE OF THIS SUBDIVISION OWNERS OF BUILDINGS ACQUIRED BY
 THE SAME OWNER OR A RELATED ENTITY OWNED BY THE  SAME  PRINCIPALS  THREE
 YEARS  PRIOR  TO THE DATE OF APPLICATION MAY APPLY TO THE STATE DIVISION
 OF HOUSING AND COMMUNITY RENEWAL FOR INCREASES IN EXCESS OF THE LEVEL OF
 APPLICABLE GUIDELINE INCREASES ESTABLISHED UNDER THIS  ACT  BASED  ON  A
 FINDING  BY  THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL THAT SUCH
 GUIDELINE INCREASES ARE NOT SUFFICIENT TO ENABLE THE OWNER TO MAINTAIN A
 NET ANNUAL RETURN OF EIGHT AND ONE-HALF PER CENTUM OF THE  VALUATION  OF
 THE  PROPERTY.    SUCH VALUATION SHALL BE THE CURRENT ASSESSED VALUATION
 ESTABLISHED BY A CITY, TOWN OR VILLAGE, WHICH IS IN EFFECT AT  THE  TIME
 OF  THE FILING OF THE APPLICATION FOR AN ADJUSTMENT UNDER THIS PARAGRAPH
 PROPERLY ADJUSTED BY APPLYING THERETO  THE  RATIO  WHICH  SUCH  ASSESSED
 VALUATION  BEARS TO THE FULL VALUATION AS DETERMINED BY THE COMMISSIONER
 OF TAXATION AND FINANCE. NET ANNUAL RETURN SHALL BE THE AMOUNT BY  WHICH
 THE  EARNED  INCOME  EXCEEDS  THE  OPERATING  EXPENSES  OF THE PROPERTY,
 EXCLUDING MORTGAGE INTEREST AND AMORTIZATION, AND  EXCLUDING  ALLOWANCES
 FOR  OBSOLESCENCE  AND RESERVES, BUT INCLUDING AN ALLOWANCE FOR DEPRECI-
 ATION 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 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.
   § 4. This act shall take effect immediately, provided that the  amend-
 ment  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 further that the  amendment  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 the administrative code of the city of New York; and provided further
 that  the  amendment to section 6 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, as amended.