S T A T E   O F   N E W   Y O R K
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                                   8432
 
                             I N  S E N A T E
 
                               May 29, 2020
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT to amend chapter 576 of the laws of 1974, constituting the emer-
   gency tenant protection act of nineteen seventy-four and the  adminis-
   trative  code  of the city of New York, in relation to placing limita-
   tions on initial regulated rents
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision b of section 6 of section 4 of chapter 576 of
 the laws of 1974, constituting the emergency tenant  protection  act  of
 nineteen seventy-four, is amended to read as follows:
   b.  The  initial legal regulated rents for housing accommodations in a
 city having a population of less than one million or a town  or  village
 as  to  which  a declaration of emergency has been made pursuant to this
 act shall be:
   (1) For housing accommodations subject to the emergency  housing  rent
 control  law which become vacant on or after the local effective date of
 this act, the rent agreed to by the landlord and the tenant and reserved
 in a lease or provided for in a rental  agreement;  provided  that  such
 initial  legal  regulated  rent  SHALL NOT EXCEED THE AVERAGE RENT FOR A
 COMPARABLE RENT REGULATED HOUSING ACCOMMODATION, AS  DETERMINED  BY  THE
 RENT GUIDELINES BOARD WITH JURISDICTION OVER SUCH HOUSING ACCOMMODATION,
 AND  may  be  adjusted on application of the owner or tenant pursuant to
 subdivision a of section nine of this act; and provided further that  no
 increase  of  such  initial regulated rent pursuant to annual guidelines
 adopted by the rent guidelines board shall become  effective  until  the
 expiration  of  the  first lease or rental agreement taking effect after
 the local effective date, but in no  event  before  one  year  from  the
 commencement of such rental agreement.
   (2)  For  all  other  housing accommodations, the rent reserved in the
 last effective lease or other rental agreement; provided that an initial
 rent based upon the rent reserved in a lease or other  rental  agreement
 which  became  effective  on  or  after  January first, nineteen hundred
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16070-01-0

 S. 8432                             2
 
 seventy-four may be adjusted on application of the  tenant  pursuant  to
 subdivision  b  of  section nine of this act or on application of either
 the owner or tenant pursuant to  subdivision  a  of  such  section;  and
 further provided that if a lease is entered into for such housing accom-
 modations  after the local effective date, but before the effective date
 of the first guidelines applicable to such accommodations, the lease may
 provide for an adjustment of rent pursuant to  such  guidelines,  to  be
 effective  on  the  first day of the month next succeeding the effective
 date of such guidelines.
   § 2. Subdivision b of section 26-512 of the administrative code of the
 city of New York is amended to read as follows:
   b. The initial regulated rent for housing  accommodations  subject  to
 this  law on the local effective date of the emergency tenant protection
 act of nineteen seventy-four or which become subject to this law  there-
 after, pursuant to such act, shall be:
   (1)  For  housing accommodations which were regulated pursuant to this
 law or the city rent and rehabilitation law prior to July  first,  nine-
 teen  hundred seventy-one, and which became vacant on or after such date
 and prior to the local effective date of the emergency tenant protection
 act of nineteen seventy-four, the rent reserved in  the  last  effective
 lease  or other rental agreement; provided that such initial rent may be
 adjusted on application of the  tenant  pursuant  to  subdivision  b  of
 section 26-513 of this chapter.
   (2)  For  housing  accommodations which were regulated pursuant to the
 city rent and rehabilitation law on the  local  effective  date  of  the
 emergency tenant protection act of nineteen seventy-four, and thereafter
 become  vacant,  the  rent  agreed to by the landlord and the tenant and
 reserved in a lease or provided for in a rental agreement; provided that
 such initial rent SHALL NOT EXCEED THE AVERAGE  RENT  FOR  A  COMPARABLE
 RENT REGULATED HOUSING ACCOMMODATION, AS DETERMINED BY THE COMMISSIONER,
 AND may be adjusted on application of the tenant pursuant to subdivision
 b of section 26-513 of this chapter.
   (3)  For  housing  accommodations  other than those described in para-
 graphs one and two of this subdivision, the rent reserved  in  the  last
 effective lease or other rental agreement.
   (4)  For  any plot or parcel of land which had been regulated pursuant
 to the city rent and rehabilitation law prior to  July  first,  nineteen
 hundred seventy-one and which,
   (i) became vacant on or after July first, nineteen hundred seventy-one
 and  prior  to  July  first,  nineteen  hundred  seventy-four,  the rent
 reserved in a lease or other rental agreement in effect on June  thirti-
 eth, nineteen hundred seventy-four plus increases authorized by the rent
 guidelines  board  under  this law for leases or other rental agreements
 commencing thereafter; provided that such initial rent may  be  adjusted
 on application of the tenant pursuant to subdivision b of section 26-513
 of this chapter or,
   (ii)  became  vacant on or after July first, nineteen hundred seventy-
 four, the rent agreed to by the landlord and the tenant and reserved  in
 a  lease or other rental agreement plus increases authorized by the rent
 guidelines board under this law for leases or  other  rental  agreements
 commencing  thereafter; provided that such initial rent SHALL NOT EXCEED
 THE AVERAGE RENT FOR A COMPARABLE RENT REGULATED HOUSING  ACCOMMODATION,
 AS DETERMINED BY THE COMMISSIONER, AND may be adjusted on application of
 the tenant pursuant to subdivision b of section 26-513 of this chapter.
   (iii)  Where  the commissioner has determined that the rent charged is
 in excess of the lawful rents as stated  in  subparagraph  (i)  or  (ii)

 S. 8432                             3
 
 hereof,  plus lawful increases thereafter, he or she shall provide for a
 cash refund or a credit, to be  applied  against  future  rent,  in  the
 amount  of  any rent overcharge collected by an owner and any penalties,
 costs,  attorneys'  fees and interest from the date of the overcharge at
 the rate of interest payable on a  judgment  pursuant  to  section  five
 thousand four of the civil practice law and rules for which the owner is
 assessed.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to section 26-512 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 chapter expires and shall not affect the expiration of such
 chapter as provided under section 26-520 of such chapter.