S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9667
 
                           I N  A S S E M B L Y
 
                              March 28, 2022
                                ___________
 
 Introduced  by  M.  of  A.  GALLAGHER  --  read once and referred to the
   Committee on Housing
 
 AN ACT to amend the emergency tenant protection act of  nineteen  seven-
   ty-four,  the administrative code of the city of New York and the real
   property tax law, in relation to reporting rent concessions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent and findings.  The legislature finds and
 declares  that  the  use of rental concessions in rent stabilized apart-
 ments to charge one rent to tenants while reporting another rent to  the
 division of housing and community renewal undermines the purposes of the
 rent stabilization laws. The rent stabilization laws, as currently writ-
 ten,  should be interpreted to find the use of rental concessions equiv-
 alent to the creation of a preferential rent.  It is the intent  of  the
 legislature  to  clarify  that, for the purposes of the emergency tenant
 protection act of nineteen seventy-four or  any  successor  legislation,
 the  amount  of  rent  charged  to and paid by the tenant or any initial
 adjusted monthly rent charged and paid refers to the net effective rent,
 which sum shall reflect the value of any rental concession. In order  to
 effectuate  the meaning and intent of the rent stabilization laws, rents
 reported to the division should equal the net effective rent paid  by  a
 tenant  based  upon  the  value  of any and all concessions, and in this
 respect the application of the law  will  be  facilitated  by  including
 rental  concessions  and  their value in annual rent registration state-
 ments.
   § 2. Subdivision f of section 12-a of section 4 of chapter 576 of  the
 laws  of 1974, constituting the emergency tenant protection act of 1974,
 as added by chapter 403 of the laws of  1983,  is  amended  to  read  as
 follows:
   f.  An annual statement shall be filed containing the current rent for
 each unit and such other information contained in subdivision a of  this
 section  as  shall  be required by the division. The owner shall provide
 each tenant then in occupancy with a copy of that portion of such annual
 statement as pertains to the tenant's unit.  SUCH ANNUAL STATEMENT SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13564-07-2
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 ALSO CONTAIN INFORMATION RELATING TO ANY AND ALL CONCESSIONS GRANTED FOR
 A UNIT AND, IN ANY CASE WHERE A CONCESSION INCLUDES A DISCOUNT  ON  RENT
 PAID  FOR  A UNIT BY THE TENANT, THE CURRENT RENT FOR EACH UNIT REPORTED
 BY THE OWNER TO THE DIVISION SHALL EQUAL THE NET EFFECTIVE RENT FOR SUCH
 UNIT BASED UPON THE VALUE OF SUCH CONCESSION.
   (1)  FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "CONCESSION" SHALL
 MEAN ANY TEMPORARY ADJUSTMENT TO A LEASE INTENDED TO INDUCE A TENANT  TO
 SIGN  OR  RENEW  SUCH  LEASE,  INCLUDING  WITHOUT  LIMITATION  A REBATE,
 DISCOUNT, WAIVER, LICENSE AGREEMENT, PRORATION, MONEY PAYMENT, OR  PHYS-
 ICAL GOOD OR SERVICE OR ACCESS THERETO.
   (2)  FOR  THE  PURPOSES  OF  THIS SUBDIVISION, THE TERM "NET EFFECTIVE
 RENT" SHALL MEAN THE AVERAGE MONTHLY RENT  CHARGED  TO  AND  PAID  BY  A
 TENANT  OVER  THE DURATION OF A TENANT'S OCCUPANCY OF A UNIT PURSUANT TO
 AN UNEXPIRED LEASE AND ANY RELATED RIDER OR AGREEMENT.
   § 3.  Subdivision f of section 26-517 of the  administrative  code  of
 the city of New York is amended to read as follows:
   f.  An annual statement shall be filed containing the current rent for
 each unit and such other information contained in subdivision a of  this
 section  as  shall  be required by the division. The owner shall provide
 each tenant then in occupancy with a copy of that portion of such annual
 statement as pertains to the tenant's unit.  SUCH ANNUAL STATEMENT SHALL
 ALSO CONTAIN INFORMATION RELATING TO ANY AND ALL CONCESSIONS GRANTED FOR
 A UNIT AND, IN ANY CASE WHERE A CONCESSION INCLUDES A DISCOUNT  ON  RENT
 PAID  FOR  A UNIT BY THE TENANT, THE CURRENT RENT FOR EACH UNIT REPORTED
 BY THE OWNER TO THE DIVISION SHALL EQUAL THE NET EFFECTIVE RENT FOR SUCH
 UNIT BASED UPON THE VALUE OF SUCH CONCESSION.
   (1) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "CONCESSION"  SHALL
 MEAN  ANY TEMPORARY ADJUSTMENT TO A LEASE INTENDED TO INDUCE A TENANT TO
 SIGN OR  RENEW  SUCH  LEASE,  INCLUDING  WITHOUT  LIMITATION  A  REBATE,
 DISCOUNT,  WAIVER, LICENSE AGREEMENT, PRORATION, MONEY PAYMENT, OR PHYS-
 ICAL GOOD OR SERVICE OR ACCESS THERETO.
   (2) FOR THE PURPOSES OF THIS  SUBDIVISION,  THE  TERM  "NET  EFFECTIVE
 RENT"  SHALL  MEAN  THE  AVERAGE  MONTHLY  RENT CHARGED TO AND PAID BY A
 TENANT OVER THE DURATION OF A TENANT'S OCCUPANCY OF A UNIT  PURSUANT  TO
 AN UNEXPIRED LEASE AND ANY RELATED RIDER OR AGREEMENT.
   §  4. Every owner of housing accommodations subject to section 12-a of
 section 4 of the emergency tenant protection act  of  nineteen  seventy-
 four  or  section  26-517  of the administrative code of the city of New
 York shall amend the annual statement filed pursuant to subdivision f of
 such applicable section for the year 2020 and, if  applicable,  for  the
 year  2021  to  include  information required to be reported pursuant to
 section two or three of this act relating to concessions  granted  on  a
 rental  unit on or after March 1, 2020.  Such amended statement shall be
 filed with the filing of the next annual statement or January  1,  2023,
 whichever  is  sooner. If an annual statement was not filed for the year
 2020 or 2021  prior  to  the  effective  date  of  this  act,  then  the
 provisions of sections two and three of this act shall apply to the next
 filing,  and information relating to concessions granted on rental units
 on or after March 1, 2020 shall be included in such annual statement.
   § 5. Paragraph a of subdivision 1 of section 421-a of the real proper-
 ty tax law, as amended by chapter 857 of the laws of 1975 and as  renum-
 bered by chapter 110 of the laws of 1977, is amended to read as follows:
   a.  "Adjusted Monthly Rent." The rent payable per month as provided in
 the first effective lease or occupancy agreement upon initial  occupancy
 of  a  rental  dwelling  unit  of a multiple dwelling after construction
 aided by exemption under this section less the cost of providing parking
 A. 9667                             3
 
 facilities and electricity, gas, cooking fuel and other utilities  other
 than  heat  and  hot water to occupants of such dwelling units[.], WHICH
 SUM SHALL REFLECT THE VALUE OF ANY AND ALL CONCESSIONS AS SUCH  TERM  IS
 DEFINED  BY  SUBDIVISION  F  OF  SECTION TWELVE-A OF SECTION FOUR OF THE
 EMERGENCY TENANT PROTECTION ACT OF 1974 OR ANY SUCCESSOR LEGISLATION.
   § 6. This act shall take effect immediately; provided,  however,  that
 the  amendments to section 26-517 of chapter 4 of title 26 of the admin-
 istrative code of the city of New York 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 under section 26-520 of such law.