NY State Senate Bill 2019-S2845

Senate Bill S2845

2019-2020 Legislative Session

Prohibits an owner from adjusting the amount of preferential rent upon the renewal of a lease

download bill text pdf

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 09, 2020	recommit, enacting clause stricken
Jan 08, 2020	referred to housing, construction and community development
Feb 07, 2019	print number 2845a
Feb 07, 2019	amend and recommit to housing, construction and community development
Jan 29, 2019	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

co-Sponsors

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2019-S2845 - 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
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2251
2011-2012: S448
2013-2014: S1775
2015-2016: S2828
2017-2018: S3712, S6527

2019-S2845 - Summary

Prohibits an owner from adjusting the amount of preferential rent, rent charged and paid by the tenant which is less than the legal regulated rent for the housing accommodation, upon the renewal of a lease; only allows the owner to make such adjustments upon a vacancy which is not the result of the failure of the owner to maintain a habitable residence.

2019-S2845 - Sponsor Memo

                                
 
BILL NUMBER: S2845

SPONSOR: KRUEGER
 
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 rents

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to prohibit an owner from revoking a rent
stabilized tenant's preferential rent upon the renewal of a lease.

 
SUMMARY OF PROVISIONS:

This bill would prohibit building owners from revoking rent stabilized
tenants' preferential rents upon lease renewal. A building owner could
only terminate a preferential rent, and collect the maximum legal regu-
lated rent for a unit, upon a tenant's vacancy. In addition, such a
vacancy could not be caused by the failure of an owner, or an agent of

the owner, to maintain the housing accommodation in a habitable condi-
tion. This bill does not apply to buildings where all of the units are
rent stabilized solely because of a regulatory agreement with a local
government agency and are deeply affordable due to project-based Section
8 rental assistance.

 
JUSTIFICATION:

The ability of building owners to terminate preferential rents upon
lease renewal has exacerbated the displacement of rent stabilized
tenants from their homes, created tremendous hardship and instability
for tenants, and worsened New York City's affordable housing crisis.
Prior to a change in state law in 2003, a preferential rent offered to a
rent stabilized tenant was permanent for the duration of a tenancy and
could only be revoked upon vacancy. As a result of amendments to the
rent stabilization laws in 2003, owners have also been able to end pref-
erential rents and impose maximum legal regulated rents anytime a
tenant's lease comes up for renewal. This statutory change has put
hundreds of thousands of tenants at risk of sudden and unexpected
substantial rent increases. All too many of these tenants have been
unable to pay the higher rents and been forced to leave their homes.
Countless tenants have also been discouraged from raising concerns about
conditions in their apartments and/or buildings because of fears this
could lead to the termination of their preferential rents.

The number of rent stabilized tenants in New York City and Westchester,
Nassau, and Rockland Counties with preferential rents has grown exponen-
tially over the last two decades. According to data from the State Divi-
sion of Housing and Community Renewal, there were 62 preferential rents
registered in 2000, 89,610 registered in 2002, and 266,279 registered in
2015. In New York City, 251,374 rent stabilized homes (more than 31% of
all occupied stabilized units) had preferential rents registered with
the State Division of Housing and Community Renewal in 2017. While the
percentage of units with preferential rents varies significantly
throughout the New York City, there are zip codes where more than 80k of
rent stabilized tenants have leases with preferential rents. Since
building owners currently can revoke a preferential rent anytime a lease
is up for renewal, these tenants lack the security of tenure available
to all other rent regulated tenants who pay their rent and comply with
their leases.

Additionally, the existing law does not contain a "clean hands" require-
ment to ensure that building owners conduct themselves responsibly when
terminating preferential rents and charging the maximum legal regulated
rent upon vacancy. If a tenant leaves an apartment that is uninhabitable
due unsanitary conditions, lack of heat, hot water, electricity,
repairs, etc., an owner can significantly increase the rent upon the
vacancy of an apartment. As such, the law encourages bad actors to
deprive tenants of a habitable apartment in order to benefit from the
ability to abandon a preferential rent.

In order to stem the displacement crisis in New York City and preserve
the affordable housing stock available to working families and moder-
ate-income residents, the rent regulation laws must be strengthened.
This proposed amendment of the preferential rent provisions is an impor-
tant step in that direction.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
LEGISLATIVE HISTORY:

2017-2018: S.6527/A.6285
2015-2016: S.2828-B/A.3809-A
2013-2014: S.1775/A.5473
2011-2012: S.448
2009-2010: S.2251/A.465-A
2007-2008: A.10055-A

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2845 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2845
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced  by Sens. KRUEGER, ADDABBO, BAILEY, BENJAMIN, COMRIE, GIANAR-
   IS, HOYLMAN, KAVANAGH, MAYER,  MONTGOMERY,  PARKER,  PERSAUD,  RIVERA,
   SANDERS,  SAVINO,  SEPULVEDA,  SERRANO,  STAVISKY  --  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 rents
 
   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 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 be
 charged  [upon  renewal  or] upon vacancy thereof, may, at the option of
 the owner, be based upon such  previously  established  legal  regulated
 rent, as adjusted by the most recent applicable guidelines increases and
 other  increases authorized by law; PROVIDED, HOWEVER, 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; AND FURTHER PROVIDED
 THAT SUCH INCREASE TO THE PREVIOUSLY ESTABLISHED  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 REGU-
 LATED RENT IF THE LAST VACANCY LEASE COMMENCED LESS THAN FOUR YEARS AGO;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00186-02-9

 S. 2845                             2
 
 AND TWENTY PERCENT OF THE PREVIOUS LEGAL  REGULATED  RENT  IF  THE  LAST
 VACANCY  LEASE  COMMENCED FOUR OR MORE YEARS AGO. 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 U.S.   DEPARTMENT OF  HOUSING  AND
 URBAN  DEVELOPMENT  OR  A STATE OR LOCAL SECTION 8 ADMINISTERING AGENCY,
 WHERE THE RENT SET BY THE FEDERAL, STATE OR LOCAL GOVERNMENT  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 ESTABLISHED LEGAL REGULATED RENT, AS ADJUSTED
 BY THE MOST RECENT APPLICABLE GUIDELINES INCREASES AND  OTHER  INCREASES
 AUTHORIZED BY 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 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  thou-
 sand  seven  hundred  dollars per month or more for any housing accommo-
 dation 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  accommo-
 dation,  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 established legal regulated
 rent, as adjusted by the most recent applicable guidelines increases and
 any other increases authorized by  law;  PROVIDED,  HOWEVER,  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;  AND  FURTHER  PROVIDED
 THAT  SUCH  INCREASE  TO THE PREVIOUSLY ESTABLISHED 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  REGU-
 LATED RENT IF THE LAST VACANCY LEASE COMMENCED LESS THAN FOUR YEARS AGO;
 AND  TWENTY  PERCENT  OF  THE  PREVIOUS LEGAL REGULATED RENT IF THE LAST
 VACANCY LEASE COMMENCED FOUR OR MORE YEARS AGO. 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 U.S.   DEPARTMENT OF  HOUSING  AND
 URBAN  DEVELOPMENT  OR  A STATE OR LOCAL SECTION 8 ADMINISTERING AGENCY,
 WHERE THE RENT SET BY THE FEDERAL, STATE OR LOCAL GOVERNMENT  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

 S. 2845                             3

 BASED UPON SUCH PREVIOUSLY ESTABLISHED LEGAL REGULATED RENT, AS ADJUSTED
 BY THE MOST RECENT APPLICABLE GUIDELINES INCREASES AND  OTHER  INCREASES
 AUTHORIZED BY LAW. Such housing accommodation shall be excluded from the
 provisions  of  this  code  pursuant 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.
   §  3.  This act shall take effect immediately; provided, however, that
 the amendments to section 10 of the emergency tenant protection  act  of
 nineteen  seventy-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, that the amendments 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
 such law.

co-Sponsors

View additional co-sponsors

2019-S2845A (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
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2251
2011-2012: S448
2013-2014: S1775
2015-2016: S2828
2017-2018: S3712, S6527

2019-S2845A (ACTIVE) - Summary

2019-S2845A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2845A

SPONSOR: KRUEGER
 
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 rents

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to prohibit an owner from revoking a rent
stabilized tenant's preferential rent upon the renewal of a lease.

 
SUMMARY OF PROVISIONS:

This bill would prohibit building owners from revoking rent stabilized
tenants' preferential rents upon lease renewal. A building owner could
only terminate a preferential rent, and collect the maximum legal regu-
lated rent for a unit, upon a tenant's vacancy. In addition, such a
vacancy could not be caused by the failure of an owner, or an agent of

the owner, to maintain the housing accommodation in a habitable condi-
tion. This bill does not apply to buildings where all of the units are
rent stabilized solely because of a regulatory agreement with a local
government agency and are deeply affordable due to project-based Section
8 rental assistance.

 
JUSTIFICATION:

The ability of building owners to terminate preferential rents upon
lease renewal has exacerbated the displacement of rent stabilized
tenants from their homes, created tremendous hardship and instability
for tenants, and worsened New York City's affordable housing crisis.
Prior to a change in state law in 2003, a preferential rent offered to a
rent stabilized tenant was permanent for the duration of a tenancy and
could only be revoked upon vacancy. As a result of amendments to the
rent stabilization laws in 2003, owners have also been able to end pref-
erential rents and impose maximum legal regulated rents anytime a
tenant's lease comes up for renewal. This statutory change has put
hundreds of thousands of tenants at risk of sudden and unexpected
substantial rent increases. All too many of these tenants have been
unable to pay the higher rents and been forced to leave their homes.
Countless tenants have also been discouraged from raising concerns about
conditions in their apartments and/or buildings because of fears this
could lead to the termination of their preferential rents.

The number of rent stabilized tenants in New York City and Westchester,
Nassau, and Rockland Counties with preferential rents has grown exponen-
tially over the last two decades. According to data from the State Divi-
sion of Housing and Community Renewal, there were 62 preferential rents
registered in 2000, 89,610 registered in 2002, and 266,279 registered in
2015. In New York City, 251,374 rent stabilized homes (more than 31k of
all occupied stabilized units) had preferential rents registered with
the State Division of Housing and Community Renewal in 2017. While the
percentage of units with preferential rents varies significantly
throughout the New York City, there are zip codes where more than 80% of
rent stabilized tenants have leases with preferential rents. Since
building owners currently can revoke a preferential rent anytime a lease
is up for renewal, these tenants lack the security of tenure available
to all other rent regulated tenants who pay their rent and comply with
their leases.

Additionally, the existing law does not contain a "clean hands" require-
ment to ensure that building owners conduct themselves responsibly when
terminating preferential rents and charging the maximum legal regulated
rent upon vacancy. If a tenant leaves an apartment that is uninhabitable
due unsanitary conditions, lack of heat, hot water, electricity,
repairs, etc., an owner can significantly increase the rent upon the
vacancy of an apartment. As such, the law encourages bad actors to
deprive tenants of a habitable apartment in order to benefit from the
ability to abandon a preferential rent.

In order to stem the displacement crisis in New York City and preserve
the affordable housing stock available to working families and moder-
ate-income residents, the rent regulation laws must be strengthened.
This proposed amendment of the preferential rent provisions is an impor-
tant step in that direction.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
LEGISLATIVE HISTORY:

2017-2018: S.6527/A.6285

2015-2016: S.2828-B/A.3809-A

2013-2014: S.1775/A.5473

2011-2012: S.448

2009-2010: S.2251/A.465-A

2007-2008: A.10055-A

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2845A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2845--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced  by Sens. KRUEGER, ADDABBO, BAILEY, BENJAMIN, COMRIE, GIANAR-
   IS, HOYLMAN, JACKSON, KAVANAGH, MAYER,  MONTGOMERY,  PARKER,  PERSAUD,
   RIVERA,  SANDERS,  SAVINO,  SEPULVEDA, SERRANO, STAVISKY -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on  Housing,  Construction  and  Community  Development  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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 rents
 
   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  be  charged  [upon  renewal  or]  upon vacancy thereof, may, at the
 option of the owner, be based upon  such  previously  established  legal
 regulated  rent,  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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00186-05-9

 S. 2845--A                          2
 
 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
 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 be
 charged [upon renewal or] upon vacancy thereof, may, at  the  option  of
 the  owner,  be  based  upon such previously established legal regulated
 rent, 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, 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
 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
 pursuant to section 26-504.2 of this chapter when, subsequent to  vacan-
 cy:  (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  thereaft-
 er,  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,

 S. 2845--A                          3
 
 for any housing accommodation that is or becomes vacant on or after  the
 rent act of 2015.
   §  3.  This act shall take effect immediately; provided, however, that
 the amendments to section 10 of the emergency tenant protection  act  of
 nineteen  seventy-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,
 as amended; and provided, further, 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 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.

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Senate Bill S2845

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Archive: Last Bill Status - Stricken

Bill Amendments

co-Sponsors

2019-S2845 - Details

2019-S2845 - Summary

2019-S2845 - Sponsor Memo

2019-S2845 - Bill Text download pdf

co-Sponsors

2019-S2845A (ACTIVE) - Details

2019-S2845A (ACTIVE) - Summary

2019-S2845A (ACTIVE) - Sponsor Memo

2019-S2845A (ACTIVE) - Bill Text download pdf

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