NY State Senate Bill 2021-S3365

Senate Bill S3365

2021-2022 Legislative Session

Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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 05, 2022	referred to housing, construction and community development
Jan 29, 2021	referred to housing, construction and community development

co-Sponsors

2021-S3365 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §6, Emerg Ten Prot Act of 1974
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7674
2015-2016: S3588
2017-2018: S4568
2019-2020: S2203
2023-2024: S1235

2021-S3365 (ACTIVE) - Summary

Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent.

2021-S3365 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3365

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the emergency tenant protection act of nineteen seven-
ty-four, in relation to capping the amount of collectible rent increases
due to major capital improvements at six percent of the legal regulated
rent

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill creates consistency between New York City and the ETPA coun-
ties (Westchester, Rockland, and Nassau) by capping MCI costs at six
percent of the legal regulated rent.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends paragraph 3 of subdivision d of section 6 of section 4
of chapter 576 of the laws of 1974, the emergency tenant protection act
of 1974, as amended by section 30 of part A of chapter 20 of the laws of

2015, to ensure the collectible increase in rent to amortize the cost of
the major capital improvement shall not exceed six percent in any year
from the effective date of the order granting the increase over the
legal regulated rent registered pursuant to section twelve-a of this
act. The collectability of any dollar excess above said sum would be
spread forward in similar increments and added to the legal regulated
rent as established or set in future years.

Section 2 establishes the effective date.

 
JUSTIFICATION:

This bill creates consistency between rent stabilized apartments in New
York City and the other ETPA counties, Nassau, Rockland and Westchester.
Currently, Section 9 of NYCRR limits MCI increases in New York City to a
maximum of six percent of the base rent. Because the law is silent, DHCR
has administratively capped the MCI increase outside of New York City at
fifteen percent. This bill corrects this oversight and establishes a
fair and consistent level for all rent stabilized apartments.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: S3538 - Referred to Housing, Construction and Community
2019-20: S2203 - Referred to Housing Construction and Community

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately: however, it expires on the expi-
ration of the ETPA.

2021-S3365 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3365
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sens.  BAILEY, MAYER, RAMOS, SEPULVEDA -- 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, in  relation  to  capping  the  amount  of  collectible  rent
   increases  due  to  major  capital  improvements at six percent of the
   legal regulated rent
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 3 of subdivision d of section 6 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 26 of
 part Q of chapter 39 of the laws of 2019, is amended to read as follows:
   (3) (A) there has been since January first, nineteen hundred  seventy-
 four  a major capital improvement essential for the preservation, energy
 efficiency, functionality, or infrastructure  of  the  entire  building,
 improvement  of  the  structure including heating, windows, plumbing and
 roofing, but shall not be for operation costs  or  unnecessary  cosmetic
 improvements.  An  adjustment under this paragraph shall be in an amount
 sufficient to amortize the cost of the  improvements  pursuant  to  this
 paragraph  over  a twelve-year period for a building with thirty-five or
 fewer housing accommodations, or a twelve  and  one-half  period  for  a
 building  with more than thirty-five housing accommodations and shall be
 removed from the legal regulated rent thirty years  from  the  date  the
 increase  became  effective  inclusive  of  any increases granted by the
 applicable rent guidelines board, for any determination  issued  by  the
 division  of  housing  and community renewal after the effective date of
 [the] chapter THIRTY-NINE of the laws of  two  thousand  nineteen  [that
 amended this paragraph]; PROVIDED THAT THE COLLECTION OF ANY INCREASE IN
 THE  LEGAL REGULATED RENT FOR ANY HOUSING ACCOMMODATION PURSUANT TO THIS
 SUBPARAGRAPH SHALL NOT EXCEED SIX PERCENT IN ANY YEAR FROM THE EFFECTIVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07082-01-1

 S. 3365                             2
 
 DATE OF THE ORDER GRANTING THE INCREASE OVER THE  LEGAL  REGULATED  RENT
 REGISTERED PURSUANT TO SECTION TWELVE-A OF THIS ACT, WITH COLLECTIBILITY
 OF  ANY  DOLLAR  EXCESS  ABOVE  SAID SUM TO BE SPREAD FORWARD IN SIMILAR
 INCREMENTS  AND  ADDED TO THE LEGAL REGULATED RENT AS ESTABLISHED OR SET
 IN FUTURE YEARS. IN NO EVENT SHALL MORE THAN ONE SIX PERCENT INCREASE IN
 THE LEGAL REGULATED RENT PURSUANT TO THIS SUBPARAGRAPH BE  COLLECTED  IN
 THE SAME YEAR.
   (B) Temporary major capital improvement increases shall be collectable
 prospectively  on  the first day of the first month beginning sixty days
 from the date of mailing notice of approval to the tenant.  Such  notice
 shall disclose the total monthly increase in rent and the first month in
 which  the  tenant  would  be required to pay the temporary increase. An
 approval for a temporary major capital improvement  increase  shall  not
 include  retroactive  payments. The collection of any increase shall not
 exceed two percent in any year from the  effective  date  of  the  order
 granting  the  increase over the rent set forth in the schedule of gross
 rents, with collectability of any dollar excess above  said  sum  to  be
 spread  forward  in  similar  increments and added to the rent as estab-
 lished or set in future years. Upon vacancy, the landlord  may  add  any
 remaining balance of the temporary major capital improvement increase to
 the  legal  regulated  rent.  Notwithstanding any other provision of the
 law, the collection of any rent increases for any renewal lease commenc-
 ing on or after June 14, 2019, due to  any  major  capital  improvements
 approved  on  or  after June 16, 2012 and before June 16, 2019 shall not
 exceed two percent in any year for any tenant in occupancy on  the  date
 the major capital improvement was approved, or
   § 2. This act shall take effect immediately.

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Senate Bill S3365

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Sponsored By

Jamaal T. Bailey