Senate Bill S3693

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3693
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2019
                                ___________
 
 Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  eliminating rent increases based on major capital improvements;
   to amend chapter 274 of the laws of 1946, constituting  the  emergency
   housing rent control law, the emergency tenant protection act of nine-
   teen seventy-four and the administrative code of the city of New York,
   in  relation  to  eliminating  rent increases to pay for major capital
   improvements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   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. The  legislature  further  finds
 that a majority of households currently occupying housing accommodations
 subject  to  rent  laws  are  rent-burdened; that permanent increases in
 rents are no longer necessary to incentivize rental property  owners  to
 make,  or  to compensate landlords for, necessary major capital improve-
 ments; that publicly funded  tax  incentives  and  other  subsidies  are
 available  to  rental  property owners to support major capital improve-
 ments; that value from major  capital  improvements  accrues  to  rental
 property owners through increased property values and sale prices; that,
 due  to  market  conditions  in  localities subject to rent laws, rental
 property owners are already able to realize a reasonable return on their
 investments in major capital  improvements  through  increased  property
 values and sale prices alone; and that provisions for hardship increases
 under  existing rent laws already ensure that rental property owners are
 able to operate rent regulated housing without incurring  undue  losses.
 The  legislature further declares and finds that a substantial number of
 the rent increases previously granted  for  major  capital  improvements
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02240-03-9

 S. 3693                             2
 
 were  tainted  by  inflated costs, particularly in the last seven years;
 that the  provision  of  permanent  rent  increases  for  major  capital
 improvements  in existing rent laws has resulted in exactions of unjust,
 unreasonable  and oppressive rents, as well as profiteering, speculation
 and other disruptive practices tending to produce tenant dislocation and
 threats to the public health, safety  and  general  welfare;  that  such
 results  were  contrary  to  the intent and purpose of the existing rent
 laws; that it is therefore necessary to amend the rent  laws  to  remove
 any  provision  of  a  permanent  rent increase based upon major capital
 improvements; and that it  is  additionally  necessary  to  repeal  rent
 increases  based  upon  major capital improvements that became effective
 within the previous seven years.
   § 2. (a) The division of housing and  community  renewal,  the  "divi-
 sion",  shall  administer  the  elimination of rent increases based upon
 major capital improvements pursuant to this act. The division  shall  no
 longer  grant  rent increases on the basis of major capital improvements
 at buildings subject to rent regulation or rent  stabilization  pursuant
 to  the  emergency rent control law, the emergency tenant protection act
 and/or the administrative code of the city  of  New  York.  All  pending
 applications  for  rent  increases based upon major capital improvements
 shall be denied, and the division shall issue orders disposing of  pend-
 ing applications as necessary.
   (b) Any rent increase based upon major capital improvements previously
 ordered by the division, pursuant to the emergency rent control law, the
 emergency  tenant  protection  act and/or the administrative code of the
 city of New York, with an effective date within the seven years prior to
 the effective date of this act shall be repealed  effective  immediately
 unless  the  division  finds a basis for limiting the repeal pursuant to
 subdivision (d) of this  section.  For  all  affected  housing  accommo-
 dations,  the division shall determine what the present legal rent would
 be for each such accommodation if the division had not ordered any  rent
 increases  based upon major capital improvements during the repeal peri-
 od, and this amount shall be the proposed new legal rent.
   (c) Within 180 days of the effective date of this act, the division of
 housing and community renewal shall determine  the  proposed  new  legal
 rents  for  all  affected housing accommodations pursuant to subdivision
 (b) of this section and shall also provide written notification  to  all
 current  owners  and tenants of affected accommodations as to the amount
 of the proposed new legal rents, the basis for the department's determi-
 nation, and the time for each affected party to submit additional infor-
 mation that the division shall consider before  issuing  a  final  order
 determining  the  new legal rents, which shall not be less than 45 days.
 Unless an owner of an affected building has submitted a timely  applica-
 tion  to  the  division  for a limitation pursuant to subdivision (d) of
 this section, the division shall issue a final order determining the new
 legal rents for affected housing accommodations within 365 days  of  the
 effective date of this act.
   (d)  (1)  Within  90  days of receiving written notice of proposed new
 legal rents from the  division  pursuant  to  subdivision  (c)  of  this
 section,  a  building owner may apply to the commissioner of housing and
 community renewal for an order limiting the amount of the repeal of rent
 increases under this act based upon a finding  by  the  commissioner  of
 housing  and community renewal that the proposed new legal rents are not
 sufficient to enable the owner to maintain an annual gross  rent  income
 for  such  building  which exceeds the annual operating expenses of such
 building by a sum equal to at least five percent of such gross rent.  In

 S. 3693                             3
 
 buildings  for  which  the commissioner of housing and community renewal
 finds that the proposed new legal rents are not sufficient to enable the
 owner to maintain an annual gross rent income for  such  building  which
 exceeds the annual operating expenses of such building by a sum equal to
 at  least  five  percent  of  such gross rent, the repeal amount of rent
 increases based upon major capital improvements shall be limited  to  an
 amount  such  that  the annual operating expenses of the building do not
 exceed ninety-five percent of the new proposed annual gross rent  income
 for such building.
   (2)  For  the  purposes  of this subdivision, operating expenses shall
 consist of the actual, reasonable,  costs  of  fuel,  labor,  utilities,
 taxes,  other  than  income or corporate franchise taxes, fees, permits,
 necessary contracted services and noncapital repairs,  insurance,  parts
 and  supplies,  management fees and other administrative costs and mort-
 gage interest. For the purposes of this subdivision,  mortgage  interest
 shall  be  deemed  to mean interest on a bona fide mortgage including an
 allocable portion of charges related thereto. Criteria to be  considered
 in determining a bona fide mortgage other than an institutional mortgage
 shall  include: condition of the property, location of the property, the
 existing mortgage market at the time the mortgage is placed, the term of
 the mortgage, the amortization rate, the principal amount of  the  mort-
 gage,  security  and other terms and conditions of the mortgage. For the
 purposes of this subdivision, gross annual rent income  for  a  building
 shall  include  a  rental  value  set by the commissioner of housing and
 community renewal for any unit occupied by the owner or a person related
 to the owner or unoccupied at the owner's choice for more than one month
 at the last  regulated  rent  plus  the  minimum  number  of  guidelines
 increases or, if no such regulated rent existed or is known, the commis-
 sioner  shall  impute  a  rent  consistent with other proposed new legal
 rents in the building.
   (e) The division shall require that owners refund any  increase  in  a
 tenant's security deposit amount collected in excess of a new legal rent
 established  under this act within thirty days of the department's issu-
 ance of an order determining  new  legal  rents.  Such  excess  security
 deposit  amount  may  be  refunded  in the form of a rent credit applied
 toward the affected tenant's next monthly  rent  payment,  and  affected
 tenants  are  entitled to self-deduct the refund amount from future rent
 payments.
   (f) The new legal rent shall be the legal rent beginning on  the  date
 rent  is  required  to  be  paid next succeeding the issuance of a final
 order determining new legal rents under this act.
   (g) Any lease agreement executed after the issuance of a  final  order
 determining  new  legal rents under this act shall be deemed to incorpo-
 rate the rent amounts and effective dates set forth in such order.
   (h) Any tenant residing  in  an  affected  housing  accommodation  may
 assert  their  entitlement to the repeal of prior rent under subdivision
 (b) of this section, as a defense or counterclaim in any legal  proceed-
 ing predicated upon a landlord's claim of default in the payment of rent
 pursuant  to an agreement. Any court with jurisdiction over a landlord's
 claim as to a tenant's default in the payment of rent shall also adjudi-
 cate and have primary jurisdiction over  the  tenant's  assertion  of  a
 defense  or  counterclaim under this provision if the department has not
 yet issued an order determining the new legal rent. A court  order  made
 under this subdivision shall not in any way be deemed to impair a build-
 ing  owner's  right  or time to apply for a limitation under subdivision
 (d) of this section.

 S. 3693                             4
 
   (i) All final orders issued by the department pursuant to subdivisions
 (b), (c), and (d) of this section shall be subject to appeal pursuant to
 existing procedures for administrative review before the division.
   §  3. Paragraph 2 of subdivision 3-a of section 4, subparagraphs 7, 8,
 9 and 10 of the second undesignated paragraph of paragraph (a) of subdi-
 vision 4 of section 4, and subdivision 9 of section 5 of chapter 274  of
 the  laws  of 1946, constituting the emergency housing rent control law,
 paragraph 2 of subdivision 3-a of section 4 as amended by chapter 337 of
 the laws of 1961, subparagraphs 8, 9 and 10 of the  second  undesignated
 paragraph  of  paragraph (a) of subdivision 4 of section 4 as amended by
 section 25 of part B of chapter 97 of the laws of 2011,  subparagraph  7
 of  the  second undesignated paragraph of paragraph (a) of subdivision 4
 of section 4 as amended by section 32 of part A of  chapter  20  of  the
 laws  of 2015, and subdivision 9 of section 5 as added by chapter 116 of
 the laws of 1997, are amended to read as follows:
   (2) the amount of  increases  in  maximum  rent  authorized  by  order
 because of increases in dwelling space, services, furniture, furnishings
 or equipment[, or major capital improvements].
   (7) [there has been since March first, nineteen hundred fifty, a major
 capital  improvement required for the operation, preservation or mainte-
 nance of the structure; which for any order of the  commissioner  issued
 after  the  effective  date  of  the  rent  act of 2015 the cost of such
 improvement shall be amortized over an eight-year period  for  buildings
 with thirty-five or fewer units or a nine year period for buildings with
 more  than  thiry-five  units, or (8)] there has been since March first,
 nineteen hundred fifty, in structures containing more than four  housing
 accommodations,  other improvements made with the express consent of the
 tenants in occupancy of at least seventy-five per centum of the  housing
 accommodations,  provided, however, that no adjustment granted hereunder
 shall exceed fifteen per centum unless the  tenants  have  agreed  to  a
 higher  percentage  of  increase, as herein provided; or [(9)] (8) there
 has been, since March first, nineteen hundred fifty, a subletting  with-
 out  written  consent  from the landlord or an increase in the number of
 adult occupants who are not members  of  the  immediate  family  of  the
 tenant, and the landlord has not been compensated therefor by adjustment
 of  the  maximum rent by lease or order of the commission or pursuant to
 the federal act; or [(10)]  (9)  the  presence  of  unique  or  peculiar
 circumstances  materially  affecting  the maximum rent has resulted in a
 maximum rent which is  substantially  lower  than  the  rents  generally
 prevailing  in  the same area for substantially similar housing accommo-
 dations.
   9. Notwithstanding any provision of this law to the  contrary  in  the
 case where all tenants occupying the housing accommodation on the effec-
 tive date of this subdivision have vacated the housing accommodation and
 a  family  member  of such vacating tenant or tenants is entitled to and
 continues to occupy the housing accommodation subject to the protections
 of this law, if such accommodation continues to be subject to  this  law
 after  such family member vacates, on the occurrence of such vacancy the
 maximum collectable rent shall be increased by a sum equal to the allow-
 ance then in  effect  for  vacancy  leases  for  housing  accommodations
 covered  by  the  rent stabilization law of nineteen hundred sixty-nine,
 including the amount allowed by paragraph five-a  of  subdivision  c  of
 section  26-511  of  such law. This increase shall be in addition to any
 other increases provided in this law including an adjustment based  upon
 [a  major capital improvement, or] a substantial increase or decrease in
 dwelling space or a change in the services,  furniture,  furnishings  or

 S. 3693                             5
 
 equipment  provided  in  the  housing accommodation, pursuant to section
 four of this law and shall be applicable in like manner to  each  second
 subsequent succession.
   §  4.  Paragraphs  3,  4,  and 5 of subdivision d and subdivision g of
 section 6 of section 4 of chapter 576 of the laws of 1974,  constituting
 the  emergency tenant protection act of nineteen seventy-four, paragraph
 3 of subdivision d as amended by section 30 of part A of chapter  20  of
 the laws of 2015, paragraph 4 of subdivision d as amended by chapter 403
 of  the laws of 1983, paragraph 5 of subdivision d as amended by chapter
 102 of the laws of 1984, and subdivision g as added by  chapter  116  of
 the laws of 1997, are amended to read as follows:
   (3) [there has been since January first, nineteen hundred seventy-four
 a  major capital improvement required for the operation, preservation or
 maintenance of the structure. An adjustment under this  paragraph  shall
 be  in  an  amount  sufficient  to amortize the cost of the improvements
 pursuant to this paragraph over an eight-year period for a building with
 thirty-five or fewer housing accommodations, or a nine-year period for a
 building with more than  thirty-five  housing  accommodations,  for  any
 determination  issued  by  the division of housing and community renewal
 after the effective date of the rent act of 2015, or
   (4)] an owner by application to the  state  division  of  housing  and
 community  renewal  for  increases  in  the  rents in excess of the rent
 adjustment authorized by the rent guidelines board under this act estab-
 lishes a hardship, and the state division finds that the  rate  of  rent
 adjustment  is  not  sufficient to enable the owner to maintain approxi-
 mately the same ratio between operating expenses,  including  taxes  and
 labor  costs but excluding debt service, financing costs, and management
 fees, and gross rents which prevailed on the average over the  immediate
 preceding  five  year  period, or for the entire life of the building if
 less than five years, or
   [(5)] (4) as an alternative to the hardship application provided under
 paragraph [four] THREE 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  division  for
 increases  in  excess  of  the  level  of applicable guideline increases
 established under this law based on a finding by the  commissioner  that
 such guideline increases are not sufficient to enable the owner to main-
 tain  an  annual  gross  rent income for such building which exceeds the
 annual operating expenses of such building by a sum equal  to  at  least
 five  percent  of  such  gross rent. For the purposes of this paragraph,
 operating expenses shall consist of the  actual,  reasonable,  costs  of
 fuel,  labor, utilities, taxes, other than income or corporate franchise
 taxes, fees, permits,  necessary  contracted  services  and  non-capital
 repairs, insurance, parts and supplies, management fees and other admin-
 istrative  costs  and  mortgage interest. For the purposes of this para-
 graph, mortgage interest shall be deemed to mean interest on a bona fide
 mortgage including an allocable  portion  of  charges  related  thereto.
 Criteria to be considered in determining a bona fide mortgage other than
 an  institutional  mortgage  shall  include;  condition of the property,
 location of the property, the existing mortgage market at the  time  the
 mortgage is placed, the term of the mortgage, the amortization rate, the
 principal  amount  of  the mortgage, security and other terms and condi-
 tions of the mortgage. The commissioner shall set a rental value for any
 unit occupied by the owner or a person related to the owner  or  unoccu-
 pied at the owner's choice for more than one month at the last regulated
 rent  plus  the  minimum  number  of guidelines increases or, if no such

 S. 3693                             6
 
 regulated rent existed or is known, the commissioner shall impute a rent
 consistent with other rents in the  building.  The  amount  of  hardship
 increase  shall  be such as may be required to maintain the annual gross
 rent  income as provided by this paragraph. The division shall not grant
 a hardship application under this paragraph or paragraph [four] THREE of
 this subdivision for a period of three years subsequent  to  granting  a
 hardship  application  under  the  provisions  of  this  paragraph.  The
 collection of any increase in the rent  for  any  housing  accommodation
 pursuant to this paragraph shall not exceed six percent in any year from
 the  effective date of the order granting the increase over the rent set
 forth in the schedule of gross rents, with collectability of any  dollar
 excess  above  said  sum  to be spread forward in similar increments and
 added to the rent as established or set in future years. No  application
 shall  be  approved  unless  the owner's equity in such building exceeds
 five percent of: (i) the arms length purchase  price  of  the  property;
 (ii)  the  cost  of any capital improvements for which the owner has not
 collected a surcharge; (iii) any repayment of principal of any  mortgage
 or  loan  used  to  finance  the purchase of the property or any capital
 improvements for which the owner has not collected a surcharge; and (iv)
 any increase in the equalized  assessed  value  of  the  property  which
 occurred  subsequent  to  the  first  valuation  of  the  property after
 purchase by the owner. For the purposes of this paragraph, owner's equi-
 ty shall mean the sum of (i) the purchase price of the property less the
 principal of any mortgage or loan used to finance the  purchase  of  the
 property,  (ii)  the cost of any capital improvement for which the owner
 has not collected a surcharge less the principal of any mortgage or loan
 used to finance said improvement, (iii) any repayment of  the  principal
 of  any mortgage or loan used to finance the purchase of the property or
 any capital  improvement  for  which  the  owner  has  not  collected  a
 surcharge,  and (iv) any increase in the equalized assessed value of the
 property which occurred subsequent to the first valuation of the proper-
 ty after purchase by the owner.
   g. Notwithstanding any provision of this act to the  contrary  in  the
 case where all tenants named in a lease have permanently vacated a hous-
 ing accommodation and a family member of such tenant or tenants is enti-
 tled  to  and  executes a renewal lease for the housing accommodation if
 such accommodation continues to be subject to this act after such family
 member vacates, on the occurrence of such vacancy  the  legal  regulated
 rent  shall  be increased by a sum equal to the allowance then in effect
 for vacancy leases, including the amount allowed by subdivision (a-1) of
 section ten of this act. Such increase shall be in addition to any other
 increases provided for in this act including an adjustment based upon [a
 major capital improvement, or] a substantial modification or increase of
 dwelling space or services, or installation of new equipment or improve-
 ments or new furniture or furnishings provided  in  or  to  the  housing
 accommodation, pursuant to section six of this act and shall be applica-
 ble in like manner to each second subsequent succession.
   §  5.  Subdivision  (a-1) 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 16-b of part A of chapter
 20 of the laws of 2015, is amended to read as follows:
   (a-1) provides that, notwithstanding any provision of  this  act,  the
 legal regulated rent for any vacancy lease entered into after the effec-
 tive  date  of  this subdivision shall be as hereinafter set forth.  The
 previous legal regulated rent for such housing  accommodation  shall  be
 increased  by  the  following: (i) if the vacancy lease is for a term of

 S. 3693                             7
 
 two years, twenty percent of the previous legal regulated rent; or  (ii)
 if  the  vacancy  lease  is for a term of one year the increase shall be
 twenty percent of the previous legal regulated rent less an amount equal
 to  the  difference  between  (a)  the  two year renewal lease guideline
 promulgated by the guidelines board of the county in which  the  housing
 accommodation  is  located  applied to the previous legal regulated rent
 and (b) the one year renewal lease guideline promulgated by  the  guide-
 lines  board of the county in which the housing accommodation is located
 applied to the previous legal regulated rent. However, where the  amount
 charged  and  paid by the prior tenant pursuant to paragraph fourteen of
 [this] subdivision C OF SECTION 26-511 OF THE ADMINISTRATION CODE OF THE
 CITY OF NEW YORK, was less than the legal regulated rent, such  increase
 to  the  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 commenced less than three years ago; fifteen percent of
 the previous legal regulated rent if the last  vacancy  lease  commenced
 less than four years ago; twenty percent of the previous legal regulated
 rent  if  the  last  vacancy  lease commenced four or more years ago. In
 addition, if the legal regulated rent was not increased with respect  to
 such housing accommodation by a permanent vacancy allowance within eight
 years  prior  to a vacancy lease executed on or after the effective date
 of this subdivision, the legal regulated rent may be  further  increased
 by an amount equal to the product resulting from multiplying such previ-
 ous legal regulated rent by six-tenths of one percent and further multi-
 plying the amount of rent increase resulting therefrom by the greater of
 (A)  the  number  of  years  since  the imposition of the last permanent
 vacancy allowance, or (B) if the rent was not increased by  a  permanent
 vacancy allowance since the housing accommodation became subject to this
 act,  the  number  of  years  that  such  housing accommodation has been
 subject to this act. Provided that if the previous legal regulated  rent
 was  less  than  three  hundred  dollars  the total increase shall be as
 calculated above plus one hundred dollars per month. Provided,  further,
 that  if  the  previous  legal regulated rent was at least three hundred
 dollars and no more than five hundred dollars  in  no  event  shall  the
 total  increase  pursuant  to  this subdivision be less than one hundred
 dollars per month. Such increase shall  be  in  lieu  of  any  allowance
 authorized  for the one or two year renewal component thereof, but shall
 be in addition to any other increases authorized pursuant  to  this  act
 including  an  adjustment based upon [a major capital improvement, or] a
 substantial modification or increase of dwelling space or  services,  or
 installation  of  new  equipment  or  improvements  or  new furniture or
 furnishings provided in or to  the  housing  accommodation  pursuant  to
 section  six  of this act.   The increase authorized in this subdivision
 may not be implemented more than one time in any calendar year, notwith-
 standing the number of vacancy leases entered into in such year.
   § 6. Section 26-403.2 of the administrative code of the  city  of  New
 York, as added by chapter 116 of the laws of 1997, is amended to read as
 follows:
   §  26-403.2  Increase in maximum collectable rent. Notwithstanding any
 provision of this law to the contrary in  the  case  where  all  tenants
 occupying  the  housing  accommodation  on  the  effective  date of this
 section have vacated the housing accommodation and a  family  member  of
 such  vacating  tenant or tenants is entitled to and continues to occupy
 the housing accommodation subject to the protections  of  this  law,  if
 such accommodation continues to be subject to this law after such family

 S. 3693                             8
 
 member  vacates, on the occurrence of such vacancy the maximum collecta-
 ble rent shall be increased by a sum equal  to  the  allowance  then  in
 effect for vacancy leases for housing accommodations covered by the rent
 stabilization  law  of nineteen hundred sixty-nine, including the amount
 allowed by paragraph five-a of subdivision c of section 26-511  of  such
 law.  This increase shall be in addition to any other increases provided
 for in this law including an adjustment  based  upon  [a  major  capital
 improvement, or] a substantial increase or decrease in dwelling space or
 a  change  in the services, furniture, furnishings or equipment provided
 in the housing accommodation, pursuant to section 26-405 of this law and
 shall be applicable in like manner to each second subsequent succession.
   § 7. Subparagraphs (g), (h), (i), (j), (k), (l), (m), (n) and  (o)  of
 paragraph  1  of  subdivision  g of section 26-405 of the administrative
 code of the city of New York, subparagraph (g) as amended by section  31
 of part A of chapter 20 of the laws of 2015, subparagraph (k) as amended
 by  chapter 749 of the laws of 1990, and clause 7 of subparagraph (n) as
 amended by local law number 76 of the city of  New  York  for  the  year
 2005, are amended to read as follows:
   (g)  [There  has  been  since  July first, nineteen hundred seventy, a
 major capital improvement required for the  operation,  preservation  or
 maintenance  of the structure. An adjustment under this subparagraph (g)
 for any order of the commissioner issued after the effective date of the
 rent act of 2015 shall be in an amount sufficient to amortize  the  cost
 of the improvements pursuant to this subparagraph (g) over an eight-year
 period  for  buildings  with  thirty-five  or fewer units or a nine year
 period for buildings with more than thirty-five units, or
   (h) There have been since March first, nineteen hundred fifty-nine, in
 structures containing  more  than  four  housing  accommodations,  other
 improvements  made  with the express consent of the tenants in occupancy
 of at least seventy-five  per  centum  of  the  housing  accommodations;
 provided,  however,  that  whenever  the city rent agency has determined
 that the improvements proposed were part of a plan designed for  overall
 improvement  of the structure or increases in services, it may authorize
 increases in maximum rents for all housing accommodations affected  upon
 the  express  consent  of the tenants in occupancy of at least fifty-one
 per centum of the housing accommodations, and provided further  that  no
 adjustment  granted hereunder shall exceed fifteen per centum unless the
 tenants have agreed to  a  higher  percentage  of  increase,  as  herein
 provided; or
   (i)] There has been, since March first, nineteen hundred fifty-nine, a
 subletting  without  written consent from the landlord or an increase in
 the number of adult occupants who are not members of the immediate fami-
 ly of the tenant, and the landlord has not been compensated therefor  by
 adjustment of the maximum rent by lease or order of the city rent agency
 or pursuant to the state rent act or the federal act; or
   [(j)]  (H) The presence of unique or peculiar circumstances materially
 affecting the maximum rent has resulted  in  a  maximum  rent  which  is
 substantially lower than the rents generally prevailing in the same area
 for substantially similar housing accommodations.
   [(k)  The landlord has incurred, since January first, nineteen hundred
 seventy, in connection with and in addition to a concurrent major  capi-
 tal  improvement  pursuant  to subparagraph (g) of this paragraph, other
 expenditures to improve, restore or preserve the quality of  the  struc-
 ture.  An  adjustment  under  this subparagraph shall be granted only if
 such improvements represent an expenditure equal to  at  least  ten  per
 centum of the total operating and maintenance expenses for the preceding

 S. 3693                             9

 year.  An adjustment under this subparagraph shall be in addition to any
 adjustment granted for the  concurrent  major  capital  improvement  and
 shall  be  in  an amount sufficient to amortize the cost of the improve-
 ments pursuant to this subparagraph over a seven-year period.
   (l)]  (I)  (1)  The  actual labor expenses currently incurred or to be
 incurred (pursuant to a collective agreement or other obligation actual-
 ly entered into by  the  landlord)  exceed  the  provision  for  payroll
 expenses  in  the  current  applicable operating and maintenance expense
 allowance under subdivision a of this section. No  application  pursuant
 to this subparagraph may be granted within one year from the granting of
 an  adjustment  in  maximum rent pursuant to this subparagraph [(l)], or
 pursuant to subparagraph (a) of this paragraph. Any  rent  increase  the
 applicant  would  be  entitled  to,  or  such portion thereof, shall not
 exceed a total increase of seven and one-half per centum  per  annum  of
 the  maximum rent as provided in paragraph five of subdivision a of this
 section.
   (2) Any adjustment in the  maximum  rents  pursuant  hereto  shall  be
 subject to:
   (i) The adjustment in maximum rent for any twelve-month period for any
 housing  accommodation shall not exceed four percent of the maximum rent
 in effect on December thirty-first, nineteen hundred seventy-three.
   (ii) Where the increase in  labor  costs  compensable  herein  is  the
 result of an industry-wide collective bargaining agreement or a specific
 agreement in anticipation of, or subsequent to, an industry-wide collec-
 tive  bargaining  agreement,  the  adjustment  shall  be  in such amount
 (subject to the above limitation) that the increased rental income  from
 January  first,  nineteen hundred seventy-four to December thirty-first,
 nineteen hundred seventy-six shall reflect the increased labor costs for
 the period from April thirtieth, nineteen hundred seventy-three to April
 thirtieth, nineteen hundred seventy-six.
   (3) For the purpose of this subparagraph [(l)] the increase  in  labor
 costs  shall  be  the  amount  by  which the labor costs (a) actually in
 effect and paid, or (b) actually in effect and paid or payable and fixed
 and determined pursuant to agreement on the date of the  filing  of  the
 application  and projected over the period ending April thirtieth, nine-
 teen hundred seventy-six, exceed the labor costs for the twelve calendar
 months immediately preceding the last day of the month in which the wage
 agreement became effective.
   (4) Notwithstanding any other provision of this chapter,  the  adjust-
 ment  pursuant  to this subparagraph shall be collectible upon the land-
 lord's filing of a report with the city  rent  agency,  subject  to  the
 provisions of subparagraph (e) of paragraph two of subdivision a of this
 section.
   (5)  No increase in the maximum rent for any housing accommodation may
 be granted under this subparagraph [(l)] if on the date when the  appli-
 cation  is sought to be filed, less than the full term of such agreement
 has elapsed since the date of the filing of the last  prior  application
 for  an  increase  with respect to such property under this subparagraph
 [(l)], which application resulted in the granting of an increase. Where,
 however, the landlord establishes the existence of  unique  or  peculiar
 circumstances affecting an increase in labor costs for the property, the
 agency may accept such application where it determines that such accept-
 ance is not inconsistent with the purposes of this local law.
   (6)  The  increase  authorized  herein  shall be apportioned equitably
 among all the housing accommodations in  the  property  whether  or  not
 subject to control under this chapter.

 S. 3693                            10

   [(m)]  (J)  Where the rehabilitation or improvement of sub-standard or
 deteriorated housing accommodations has been financed  under  a  govern-
 mental program providing assistance through loans, loan insurance or tax
 abatement  or  has  been undertaken under another rehabilitation program
 not so financed but approved by the commissioner.
   [(n)](K)(1) The city rent agency shall hereafter promulgate in January
 of each year;
   (i)  findings  regarding the price increase or decrease, respectively,
 for all types of heating fuel, including numbers two, four and six  home
 heating oils, utility supplied steam, gas, electricity and coal, togeth-
 er  with the sales and excise taxes thereon, on December thirty-first as
 compared to the January first in any year; and
   (ii) standards for consumption of heating fuel, which shall be no more
 than two hundred twenty-five gallons per year per room commencing  Janu-
 ary first, nineteen hundred eighty-one, for buildings using heating oils
 for  heat with comparable unit limitations to be established by the city
 rent agency for utility supplied steam, gas, electricity, coal  and  any
 other types of heating systems, provided that such consumption standards
 for heating fuels shall be reduced by five gallons per room per year for
 heating  oils  and  a  comparable amount for other heating fuels for the
 next succeeding year and ten gallons per room per year for heating  oils
 and a comparable amount for other heating fuels for two succeeding years
 thereafter.
   Such findings and consumption standards shall be published in the City
 Record.
   (2) To obtain a rental adjustment pursuant to this subparagraph [(n)],
 the  landlord shall file a report with the agency on forms prescribed by
 the agency and shall:
   (i) certify the amount of heating fuel consumed in the  calendar  year
 immediately prior to the filing of the report;
   (ii) state the type of fuel used and the number of rooms in the build-
 ing;
   (iii)  certify that (a) all essential services required to be provided
 have been and will continue to be maintained and (b) there has  been  no
 rent  reduction order issued pursuant to this chapter based on the land-
 lord's failure to provide heat or hot  water  during  the  prior  twelve
 months;
   (iv)  certify  on  information  and belief, in order to qualify for an
 additional rent increase pursuant to this subparagraph [(n)],  that  for
 an  individual  housing  accommodation,  if the maximum rent collectible
 pursuant to paragraph five of subdivision a of this section plus  actual
 rent adjustments pursuant to this subparagraph [(n)] and such additional
 rent  increase,  is  equal  to  or  exceeds the maximum rent established
 pursuant to paragraphs three and four of subdivision a of  this  section
 plus  the  amount  calculated  pursuant to subitem (i) of item three and
 subitem (i) of item four of this subparagraph [(n)], each  to  be  allo-
 cated  to  such  housing  accommodation pursuant to subitem (ii) of item
 four of this subparagraph [(n)], that the landlord will not  be  earning
 an  amount  in  excess of the statutory return specified in subparagraph
 (a) of THIS paragraph [one of  subdivision  g  of  this  section]  after
 collection  of a rent increase pursuant to this subparagraph [(n)], with
 respect to a building or buildings serviced by a single heating plant;
   (v) report any funds received with respect  to  the  housing  accommo-
 dations  from  any governmental grant program compensating such landlord
 for fuel price increases during the period for which  an  adjustment  is
 obtained pursuant to this subparagraph [(n)];

 S. 3693                            11
 
   (vi) provide such other information as the agency may require.
   (3)  Rent adjustments for controlled housing accommodations for annual
 heating fuel cost increases  or  decreases  experienced  after  December
 thirty-first,  nineteen  hundred  seventy-nine,  shall  be determined as
 follows:
   (i) the increase or decrease in heating fuel prices found by the agen-
 cy for that year shall be multiplied by the actual consumption,  not  to
 exceed  that year's consumption standard established pursuant to subitem
 (ii) of item one of this subparagraph; and
   (ii) seventy-five percentum of such amount shall  be  allocated  among
 all rental space in the building, including commercial, professional and
 similar  facilities,  provided,  for  the  purposes of this subparagraph
 [(n)], that living rooms, kitchens over fifty-nine square feet  in  area
 and  bedrooms  shall  be considered rooms and that bathrooms, foyers and
 kitchenettes shall not be considered rooms.
   (4) Rent adjustments for controlled housing accommodations for heating
 fuel cost increases or decreases experienced from April ninth,  nineteen
 hundred seventy-nine, through and including December thirty-first, nine-
 teen hundred seventy-nine, shall be determined as follows:
   (i) the increase or decrease in heating fuel prices found by the agen-
 cy  for that period shall be multiplied by seventy-five percentum of the
 actual heating fuel consumption during the period  from  January  first,
 nineteen  hundred  seventy-nine,  through and including December thirty-
 first, nineteen hundred seventy-nine, which consumption shall not exceed
 seventy-five percentum of that year's consumption  standard  established
 by the agency; and
   (ii)  such  amount  shall  be  allocated among all rental space in the
 building, including commercial,  professional  and  similar  facilities,
 provided,  for  the  purposes  of  this  subparagraph [(n)], that living
 rooms, kitchens over fifty-nine square feet in area and  bedrooms  shall
 be  considered  rooms  and that bathrooms, foyers and kitchenettes shall
 not be considered rooms.
   The city rent agency shall promulgate findings for heating fuel  price
 increases or decreases and standards for consumption for the periods set
 forth in this item four thirty days after this local law is enacted. The
 standard for consumption shall be no more than seventy-five percentum of
 two hundred thirty gallons per room for buildings using heating oils for
 heat with comparable unit limitations to be established by the city rent
 agency  for utility supplied steam, gas, electricity, coal and any other
 types of heating systems.
   (5) A landlord who files a report pursuant to  this  subparagraph  and
 who  falsely certifies shall not be eligible to collect any rent adjust-
 ment pursuant to this subparagraph for two years  following  a  determi-
 nation  of  a  false  certification  and,  in  addition, any adjustments
 obtained pursuant to this subparagraph for up to two years prior to such
 determination shall not be collectible for that same  two  year  period.
 Such  landlord shall also be subject to any additional penalties imposed
 by law.
   (6) A landlord annually may file a report pursuant  to  this  subpara-
 graph  [(n)]  after  promulgation  by  the  agency  of  the findings and
 consumption standards set forth in item one of THIS subparagraph  [(n)].
 A rent adjustment pursuant to such report shall be prospectively collec-
 tible  upon  the  landlord's  serving  and  filing the report, provided,
 however, that if a landlord files such report within sixty days  of  the
 promulgation  of  such  findings  and  consumption  standards, such rent

 S. 3693                            12
 
 adjustment shall be retroactive to and shall  be  effective  as  of  the
 January first of the year in which the report is filed.
   (7)  A  landlord demanding or collecting a rent adjustment pursuant to
 this subparagraph [(n)] shall at  the  time  of  either  the  demand  or
 collection  issue to the tenant either a rent bill or receipt separately
 setting forth the amount of the adjustment pursuant to this subparagraph
 [(n)]  and  the  amount  of  the  maximum  rent  otherwise  demanded  or
 collected.    If  the tenant has been issued a valid senior citizen rent
 exemption order or a valid disability rent exemption  order,  the  owner
 shall  also separately state the amount payable by the senior citizen or
 person with a disability after the exemption.
   (8) In the event that a rent reduction order is  issued  by  the  city
 rent  agency  based  upon  the landlord's failure to provide heat or hot
 water to housing accommodations for which the landlord is  collecting  a
 rent adjustment pursuant to this subparagraph [(n)], the rent adjustment
 shall  not  be collected during the time such rent reduction order is in
 effect and for twelve months following the date of  the  restoration  of
 the  rent  reduction. In addition, the landlord shall not be eligible to
 collect any subsequent rent adjustment  pursuant  to  this  subparagraph
 [(n)]  until  twelve months following the date of the restoration of the
 rent reduction.
   (9) In the event that the city rent agency promulgates a finding of  a
 price  decrease,  if  any  landlord  who  has obtained a rent adjustment
 pursuant to this subparagraph [(n)] does not file a report  for  a  rent
 adjustment  pursuant to this subparagraph [(n)] within sixty days of the
 promulgation of such findings, then all rent adjustments obtained pursu-
 ant to this subparagraph [(n)] shall not be collectible for a period  of
 twelve months.
   (10)  Any rent adjustment obtained pursuant to this subparagraph [(n)]
 shall not be included in the maximum rent established pursuant to  para-
 graph four or five of subdivision [(a)] A of this section.
   (11)  The  city  rent  agency  shall have the power to promulgate such
 regulations as it may consider necessary or convenient to implement  and
 administer  the  provisions  of this subparagraph [(n)]. The regulations
 shall also require that any rent adjustment  granted  pursuant  to  this
 subparagraph  [(n)]  be  reduced  by an amount equal to any governmental
 grant received by the landlord compensating the landlord  for  any  fuel
 price  increases, but not required by the city, the agency or any grant-
 ing government entity  to  be  expended  for  fuel  related  repairs  or
 improvements.
   [(o)]  (L)  (1) There has been an increase in heating and heating fuel
 expenditures in a property resulting from a city-wide  rise  in  heating
 fuel  costs such that the verifiable expenditures for heating or heating
 fuel in a property for nineteen hundred seventy-four exceeds the verifi-
 able expenditures for such  heating  or  heating  fuel  during  nineteen
 hundred seventy-three.
   (2) To obtain a rental adjustment pursuant to this subparagraph [(o)],
 the  landlord  must  certify that he or she is presently maintaining all
 essential services required to be furnished with respect to the  housing
 accommodations  covered  by  such certification, and that he or she will
 continue to so maintain such essential services for the  period  of  any
 such adjustment.
   (3) To obtain a rental adjustment pursuant to this subparagraph [(o)],
 the  landlord must certify on information and belief that he or she will
 not be earning an amount in excess of the statutory return specified  in
 subparagraph  (a)  of  THIS  paragraph  [one  of  subdivision  g of this

 S. 3693                            13

 section] after collection of such rental adjustment, with respect to the
 building or buildings serviced by a single heating plant; and where  the
 building,  or  buildings  serviced  by  a single heating plant, contains
 forty-nine  or  fewer  housing accommodations, the landlord must certify
 that the amount expended directly for heating or heating fuel  in  nine-
 teen hundred seventy-four equalled or exceeded ten per cent of the total
 rental  income  which  was  derived  from  the  property during nineteen
 hundred seventy-four; and, where the building, or buildings serviced  by
 a  single  heating  plant, contains fifty or more housing accommodations
 the landlord must certify that the amount expended directly for  heating
 or  heating  fuel  in nineteen hundred seventy-four equalled or exceeded
 seven and one-half percentum  of  the  total  rental  income  which  was
 derived from the property during nineteen hundred seventy-four.
   (4)  The  total  rental  adjustments for a property to be allocated or
 deemed allocated pursuant to this subparagraph [(o)]  shall  not  exceed
 one-half  of the gross amount by which the total verifiable expenditures
 for heating or heating fuel for nineteen  hundred  seventy-four  exceeds
 the  total  verifiable expenditures for such heating or heating fuel for
 nineteen hundred seventy-three.
   (5) Such total rental adjustments shall be allocated or  deemed  allo-
 cated  pursuant to this subparagraph [(o)] to all housing accommodations
 subject to this chapter, to all other housing accommodations, and to all
 commercial, professional and similar facilities in  or  associated  with
 the  property  in  a  manner to be determined by the agency. In no event
 shall any adjustment in maximum rent pursuant to this subparagraph [(o)]
 for any housing accommodations subject to this chapter exceed a  monthly
 increase of two dollars per room, as defined by item eight below. In any
 apartment  containing  five or more rooms, any increase shall not exceed
 the total of nine dollars.
   (6) Any adjustment pursuant to this subparagraph [(o)] shall be effec-
 tive for all or part of the period July first, nineteen  hundred  seven-
 ty-five  through  June  thirtieth,  nineteen  hundred  seventy-six.  Any
 adjustment pursuant to this subparagraph shall automatically  expire  no
 later than June thirtieth, nineteen hundred seventy-six.
   (7)  The  rental  increases provided for herein shall be effective and
 collectible upon the landlord's filing a report with the agency on forms
 prescribed by the agency and upon giving such notice to the  tenants  as
 the  agency  shall  prescribe,  subject to adjustments upon order of the
 agency.
   (8) In determining the  amount  of  an  adjustment  allocation  of  an
 adjustment  pursuant  to  this  subparagraph  [(o)],  only living rooms,
 kitchens over fifty-nine square feet in area, dining rooms and  bedrooms
 shall be considered rooms; bathrooms, foyers, and kitchenettes shall not
 be considered rooms.
   § 8. Subdivision a of section 26-407 of the administrative code of the
 city of New York is amended to read as follows:
   a.  Notwithstanding  any  provisions  of  this chapter, any labor cost
 pass-along rent increase requested of, or received from, any  tenant  on
 or  after  July  first,  nineteen  hundred  seventy-two, pursuant to the
 provisions of subparagraph [(1)] (I) of paragraph one of  subdivision  g
 of  section  26-405  of  this  title,  shall not exceed the maximum rent
 adjustment as provided under this chapter after the  effective  date  of
 this section.
   §  9.  Paragraphs  5-a and 6 of subdivision c of section 26-511 of the
 administrative code of the city of New York, paragraph 5-a as amended by
 section 16-a of part A of chapter 20 of the laws of 2015 and paragraph 6

 S. 3693                            14
 
 as amended by section 29 of part A of chapter 20 of the  laws  of  2015,
 are amended to read as follows:
   (5-a)  provides  that,  notwithstanding any provision of this chapter,
 the legal regulated rent for any vacancy lease entered  into  after  the
 effective  date  of  this  paragraph shall be as hereinafter provided in
 this paragraph. The previous  legal  regulated  rent  for  such  housing
 accommodation  shall  be  increased by the following: (i) if the vacancy
 lease is for a term of two years, twenty percent of the  previous  legal
 regulated  rent;  or (ii) if the vacancy lease is for a term of one year
 the increase shall be twenty percent of  the  previous  legal  regulated
 rent  less  an  amount  equal to the difference between (a) the two year
 renewal lease guideline promulgated by the guidelines board of the  city
 of New York applied to the previous legal regulated rent and (b) the one
 year  renewal lease guideline promulgated by the guidelines board of the
 city of New York applied to the previous legal regulated rent.  However,
 where  the amount charged and paid by the prior tenant pursuant to para-
 graph fourteen of this subdivision, was less than  the  legal  regulated
 rent,  such  increase to the 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 regulated rent  if  the  last
 vacancy  lease commenced less than four years ago; twenty percent of the
 previous legal regulated rent if the last vacancy lease  commenced  four
 or  more  years  ago.  In  addition, if the legal regulated rent was not
 increased with respect to such  housing  accommodation  by  a  permanent
 vacancy  allowance  within eight years prior to a vacancy lease executed
 on or after the effective date of this paragraph,  the  legal  regulated
 rent  may be further increased by an amount equal to the product result-
 ing from multiplying such previous legal regulated rent by six-tenths of
 one percent and further multiplying the amount of rent increase  result-
 ing  therefrom by the greater of (A) the number of years since the impo-
 sition of the last permanent vacancy allowance, or (B) if the  rent  was
 not  increased by a permanent vacancy allowance since the housing accom-
 modation became subject to this chapter, the number of years  that  such
 housing accommodation has been subject to this chapter. Provided that if
 the  previous  legal  regulated rent was less than three hundred dollars
 the total increase shall be as calculated above plus one hundred dollars
 per month. Provided, further, that if the previous legal regulated  rent
 was at least three hundred dollars and no more than five hundred dollars
 in  no event shall the total increase pursuant to this paragraph be less
 than one hundred dollars per month. Such increase shall be  in  lieu  of
 any allowance authorized for the one or two year renewal component ther-
 eof, but shall be in addition to any other increases authorized pursuant
 to  this  chapter  including  an  adjustment based upon [a major capital
 improvement, or] a substantial  modification  or  increase  of  dwelling
 space  or  services, or installation of new equipment or improvements or
 new furniture or furnishings provided in or to the housing accommodation
 pursuant to this section. The increase authorized in this paragraph  may
 not  be  implemented  more  than one time in any calendar year, notwith-
 standing the number of vacancy leases entered into in such year.
   (6) provides criteria whereby the commissioner may act  upon  applica-
 tions  by  owners  for  increases  in  excess  of the level of fair rent
 increase established under this law provided, however, that such  crite-
 ria shall provide [(a)], as to hardship applications, for a finding that
 the level of fair rent increase is not sufficient to enable the owner to

 S. 3693                            15
 
 maintain  approximately  the same average annual net income (which shall
 be computed without regard to debt service, financing costs  or  manage-
 ment  fees)  for the three year period ending on or within six months of
 the  date  of  an application pursuant to such criteria as compared with
 annual net income, which prevailed on the average over the period  nine-
 teen  hundred  sixty-eight  through nineteen hundred seventy, or for the
 first three years of operation if the building was completed since nine-
 teen hundred sixty-eight or for the first three  fiscal  years  after  a
 transfer of title to a new owner provided the new owner can establish to
 the  satisfaction  of  the commissioner that he or she acquired title to
 the building as a result of a bona fide sale of the entire building  and
 that  the new owner is unable to obtain requisite records for the fiscal
 years nineteen hundred  sixty-eight  through  nineteen  hundred  seventy
 despite  diligent  efforts to obtain same from predecessors in title and
 further provided that the new owner can provide financial data  covering
 a  minimum  of  six  years under his or her continuous and uninterrupted
 operation of the building to meet the three year to three  year  compar-
 ative  test  periods herein provided[; and (b) as to completed building-
 wide major capital improvements, for a finding  that  such  improvements
 are deemed depreciable under the Internal Revenue Code and that the cost
 is  to  be amortized over an eight-year period for a building with thir-
 ty-five or fewer housing accommodations, or a  nine-year  period  for  a
 building  with  more  than  thirty-five  housing accommodations, for any
 determination issued by the division of housing  and  community  renewal
 after  the  effective  date  of  the  rent  act of 2015, based upon cash
 purchase price exclusive of interest or service charges].  Notwithstand-
 ing anything to the contrary  contained  herein,  no  hardship  increase
 granted pursuant to this paragraph shall, when added to the annual gross
 rents,  as  determined  by  the commissioner, exceed the sum of, (i) the
 annual operating expenses, (ii) an allowance for management services  as
 determined  by  the  commissioner,  (iii)  actual  annual  mortgage debt
 service (interest and amortization) on its  indebtedness  to  a  lending
 institution,  an  insurance  company,  a retirement fund or welfare fund
 which is operated under the supervision of the banking or insurance laws
 of the state of New York or the United States, and (iv) eight  and  one-
 half  percent  of  that portion of the fair market value of the property
 which exceeds the unpaid principal amount of the  mortgage  indebtedness
 referred  to  in subparagraph (iii) of this paragraph. Fair market value
 for the purposes of this paragraph shall be six times the  annual  gross
 rent.  The  collection  of  any  increase in the stabilized rent for any
 apartment pursuant to this paragraph shall not exceed six percent in any
 year from the effective date of the order granting the increase over the
 rent set forth in the schedule of gross rents,  with  collectability  of
 any  dollar excess above said sum to be spread forward in similar incre-
 ments and added to the stabilized rent as established or set  in  future
 years;
   §  10.  Subdivision  f of section 26-512 of the administrative code of
 the city of New York, as added by chapter 116 of the laws  of  1997,  is
 amended to read as follows:
   f.  Notwithstanding  any  provision of this law to the contrary in the
 case where all tenants named in a lease have permanently vacated a hous-
 ing accommodation and a family member of such tenant or tenants is enti-
 tled to and executes a renewal lease for the  housing  accommodation  if
 such accommodation continues to be subject to this law after such family
 member  vacates,  on  the occurrence of such vacancy the legal regulated
 rent shall be increased by a sum equal to the allowance then  in  effect

 S. 3693                            16
 
 for vacancy leases, including the amount allowed by paragraph [(five-a)]
 FIVE-A  of  subdivision  c  of section 26-511 of this law. Such increase
 shall be in addition to any other increases provided  for  in  this  law
 including  an  adjustment based upon [a major capital improvement, or] a
 substantial modification or increase of dwelling space or  services,  or
 installation  of  new  equipment  or  improvements  or  new furniture or
 furnishings provided in or to  the  housing  accommodation  pursuant  to
 section  26-511  of  this  law and shall be applicable in like manner to
 each second subsequent succession.
   § 11. If any clause, sentence, paragraph, subdivision, 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 judgment 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. It is further declared to be  the  intent  of  the
 legislature  that  this act would have been enacted even if subdivisions
 (b), (c), (d), (e), (f), (g), (h), and (i) of section two  of  this  act
 had not been included herein.
   § 12. This act shall take effect immediately; provided:
   (a)  that  the amendments to sections 4 and 5 of the emergency housing
 rent control law made by section three of this act shall expire  on  the
 same  date  as  such  law expires and shall not affect the expiration of
 such law as provided in subdivision 2 of section 1 of chapter 274 of the
 laws of 1946;
   (b) that the amendments to sections 6 and 10 of section 4 of the emer-
 gency tenant protection act of nineteen seventy-four  made  by  sections
 four  and  five  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;
   (c)  that 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 nine  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;
   (d) that the amendments to section 26-512 of chapter 4 of title 26  of
 the  administrative  code of the city of New York made by section ten 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
   (e) that the amendments to sections 26-403.2, 26-405 and 26-407 of the
 city  rent and rehabilitation law made by sections six, seven, and eight
 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.
   (f) Effective immediately, the addition, amendment  and/or  repeal  of
 any  rule  or regulation necessary for the implementation of this act on
 its effective date are authorized and directed to be made and  completed
 on or before such effective date.