S T A T E   O F   N E W   Y O R K
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                                   5128
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 10, 2019
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 waivers of rent adjustments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision dd of section 11-243 of the administrative code
 of  the city of New York, as added by local law number 41 of the city of
 New York for the year 1988, is amended to read as follows:
   dd. [Partial waiver] WAIVER of rent adjustments attributable to  major
 capital  improvements.  (1)  The provisions of this subdivision apply to
 and are additional requirements for claiming or receiving any tax abate-
 ment under this section, except as provided in paragraphs three and four
 of this subdivision.
   (2) The owner of the property shall file with the department of  hous-
 ing  preservation and development, on the date any application for bene-
 fits is made, a declaration stating that in  consideration  of  any  tax
 abatement  benefits  which  may be received pursuant to such application
 for alterations or improvements constituting a  major  capital  improve-
 ment,  such  owner  agrees  to waive the collection of a [portion of the
 total annual amount of any] rent adjustment attributable to  such  major
 capital  improvement which may be granted by the New York state division
 of housing and community renewal pursuant to the rent stabilization code
 equal to [one-half of] the total annual  amount  of  the  tax  abatement
 benefits  which  the property receives pursuant to such application with
 respect to such alterations or improvements. Such waiver shall  commence
 on  the  date  of the first collection of such rent adjustment, provided
 that, in the event that such tax abatement benefits were received  prior
 to  such  first  collection,  the  amount  waived  shall be increased to
 account for such tax abatement benefits  so  received.    Following  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09275-01-9

 S. 5128                             2
 
 expiration of a tax abatement for alterations or improvements constitut-
 ing  a  major  capital  improvement for which a rent adjustment has been
 granted by such division, the owner may collect the full amount of annu-
 al  rent  permitted  pursuant  to  such  rent adjustment. A copy of such
 declaration shall be filed simultaneously with the New York state  divi-
 sion of housing and community renewal. Such declaration shall be binding
 upon such owner, and his or her successors and assigns.
   (3)  The provisions of this subdivision shall not apply to substantial
 rehabilitation of buildings vacant when alterations or improvements  are
 commenced  or to buildings rehabilitated with the substantial assistance
 of city, state or federal subsidies.
   (4) The provisions of this subdivision shall apply only to alterations
 and improvements commenced after its effective date.
   § 2. This act shall take effect immediately.