NY State Senate Bill 2019-S6089

Archive: Last Bill Status - Stricken

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 09, 2020	recommit, enacting clause stricken
Jan 08, 2020	referred to housing, construction and community development
May 16, 2019	referred to housing, construction and community development

2019-S6089 (ACTIVE) - Details

Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §10, Emerg Ten Prot Act of 1974; amd §26-511, NYC Ad Cd

2019-S6089 (ACTIVE) - Summary

Relates to the regulation of the amount of rent charged.

2019-S6089 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6089

SPONSOR: RIVERA
 
TITLE OF BILL:

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 amount of rent charged

 
PURPOSE:

The purpose of this bill is to prohibit landlords from taking away pref-
erential rent from a rent regulated tenant.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends 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 to establish that any preferential rent
given to a tenant that is lower than the legal rent shall be the new
legal maximum rent for the unit, while also ensuring that this does not

apply to any building that has any regulatory agreement with its local
government that receives federal project based rental assistance such as
affordable housing projects.

Section 2 amends paragraph 14 of subdivision c of section 26-511 of the
administrative code of the city of New York to establish that any pref-
erential rent given to a tenant that is lower than the legal rent shall
be the new legal maximum rent for the unit, while also ensuring that
this does not apply to any building that has any regulatory agreement
with its local government that receives federal project based rental
assistance such as affordable housing projects.

Section 3 establishes the effective date.

 
JUSTIFICATION:

Landlords currently have the ability to charge a lower rent than that of
the legal regulated rent, which is also known as preferential rent. They
also have the right to remove that preferential rent at the renewal of
any lease. The reason landlords use a preferential rent is because many
people who are trying to rent cannot reasonably afford the current legal
rent in many neighborhoods across New York City (NYC). According to a
report by the Independent Budget Office in NYC, there was about a 6%
increase from 2010 to 29% in 2017, of all rent stabilized units receiv-
ing a preferential rent (May 2019). This is alarming, particularly know-
ing that many landlords have taken advantage by obscuring the legal rent
and then driving out tenants with an unexpected rent hike. Usually these
rent hikes are above 10% of the rent they currently pay, which in turn
allows landlords to get a 20% vacancy bonus on the legal rent, moving
them closer to deregulating the units.

There are many tools landlords have been able to use to increase rents,
displace tenants and gentrify neighborhoods. In order to address the
root issue that the legislature caused with a 2002 amendment, this bill
will reinstate the protections that tenants once had by ensuring that
any preferential rent given will be the new legal rent and increase,
according to the Rent Guidelines Board.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S6089 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6089
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by  Sen.  RIVERA -- 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 amount of rent charged
 
   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] WHERE the amount of rent charged to and
 paid by the tenant is less than the legal regulated rent for the housing
 accommodation, the amount of rent for such housing accommodation  [which
 may]  THAT  SHALL be charged [upon renewal or upon vacancy thereof, may,
 at the option of] BY the owner[,] SHALL be based  upon  such  previously
 established  [legal  regulated]  LOWER  rent  CHARGED TO AND PAID BY THE
 TENANT, as adjusted by the most recent applicable  guidelines  increases
 and  other  increases  authorized  by  law;  PROVIDED, HOWEVER, THAT FOR
 BUILDINGS THAT ARE SUBJECT TO THIS STATUTE BY  VIRTUE  OF  A  REGULATORY
 AGREEMENT  WITH  A  LOCAL  GOVERNMENT AGENCY AND WHICH BUILDINGS RECEIVE
 FEDERAL PROJECT BASED  RENTAL  ASSISTANCE  ADMINISTERED  BY  THE  UNITED
 STATES  DEPARTMENT  OF HOUSING AND URBAN DEVELOPMENT OR A STATE OR LOCAL
 SECTION EIGHT ADMINISTERING AGENCY, WHERE THE RENT SET BY  THE  FEDERAL,
 STATE OR LOCAL GOVERNMENTAL AGENCY IS LESS THAN THE LEGAL REGULATED RENT
 FOR  THE  HOUSING  ACCOMMODATION,  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  ESTAB-
 LISHED  LEGAL  REGULATED RENT, AS ADJUSTED BY THE MOST RECENT APPLICABLE
 GUIDELINES INCREASES AND OTHER INCREASES AUTHORIZED BY LAW; AND  FURTHER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11863-01-9

 S. 6089                             2

 PROVIDED  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. Such
 housing accommodation 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 five hundred dollars per month, or more, for any housing accom-
 modation  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  accom-
 modation,  the amount of rent for such housing accommodation [which may]
 THAT SHALL be charged [upon renewal or upon vacancy thereof, may, at the
 option of] BY the owner[,] SHALL be based upon  such  previously  estab-
 lished  [legal  regulated] LOWER rent CHARGED TO AND PAID BY THE TENANT,
 as adjusted by the most recent applicable guidelines increases  and  any
 other increases authorized by law; PROVIDED, HOWEVER, THAT FOR BUILDINGS
 THAT  ARE  SUBJECT  TO  THIS STATUTE BY VIRTUE OF A REGULATORY AGREEMENT
 WITH A LOCAL GOVERNMENT  AGENCY  AND  WHICH  BUILDINGS  RECEIVE  FEDERAL
 PROJECT  BASED  RENTAL  ASSISTANCE  ADMINISTERED  BY  THE  UNITED STATES
 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR A STATE OR LOCAL  SECTION
 EIGHT  ADMINISTERING AGENCY, WHERE THE RENT SET BY THE FEDERAL, STATE OR
 LOCAL GOVERNMENTAL AGENCY IS LESS THAN THE LEGAL REGULATED RENT FOR  THE
 HOUSING ACCOMMODATION, 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, BY BASED UPON  SUCH  PREVIOUSLY  ESTABLISHED  LEGAL
 REGULATED  RENT,  AS  ADJUSTED  BY THE MOST RECENT APPLICABLE GUIDELINES
 INCREASES AND OTHER INCREASES AUTHORIZED BY LAW;  AND  FURTHER  PROVIDED
 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. Such housing
 accommodation shall be excluded from the provisions of this code  pursu-
 ant 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.

 S. 6089                             3
 
   § 3. This act shall take effect immediately; provided,  however,  that
 the amendments to the emergency tenant protection act of nineteen seven-
 ty-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 the amendments to section 26-511 of the administrative  code  of
 the city of New York 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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S6089

Sponsored By

Archive: Last Bill Status - Stricken

2019-S6089 (ACTIVE) - Details

2019-S6089 (ACTIVE) - Summary

2019-S6089 (ACTIVE) - Sponsor Memo

2019-S6089 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6089

Share this bill

Sponsored By

Gustavo Rivera

Archive: Last Bill Status - Stricken

2019-S6089 (ACTIVE) - Details

2019-S6089 (ACTIVE) - Summary

2019-S6089 (ACTIVE) - Sponsor Memo

2019-S6089 (ACTIVE) - Bill Text download pdf

Comments