NY State Senate Bill 2021-S7235

Senate Bill S7235

2021-2022 Legislative Session

Relates to rental assistance and legal regulated rents in affordable housing projects

download bill text pdf

Archive: Last Bill Status - Passed Senate & Assembly

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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2022	returned to senate passed assembly ordered to third reading rules cal.542 substituted for a8098
Apr 26, 2022	referred to housing delivered to assembly passed senate
Mar 14, 2022	advanced to third reading
Mar 10, 2022	2nd report cal.
Mar 09, 2022	1st report cal.691
Jan 05, 2022	referred to housing, construction and community development
Jun 07, 2021	referred to rules

Votes

- Apr 26, 2022 - Floor Vote
  S7235
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Apr 26, 2022
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
      
      excused (1)
      
      Brouk
  Mar 9, 2022 - Housing, Construction And Community Development Committee Vote
  S7235
  
  9
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: Mar 9, 2022
      
      aye (9)
      
      Boyle
      
      Brisport
      
      Jackson
      
      Kavanagh
      
      Mannion
      
      Myrie
      
      Rivera
      
      Ryan
      
      Salazar
      
      nay (1)
      
      Martucci
      
      aye wr (1)
      
      Helming

co-Sponsors

2021-S7235 (ACTIVE) - Details

See Assembly Version of this Bill:: A8098
Law Section:: Private Housing Finance Law
Laws Affected:: Add §610, Priv Hous Fin L
Versions Introduced in 2021-2022 Legislative Session:: S7235, A8098

2021-S7235 (ACTIVE) - Summary

Relates to rental assistance and legal regulated rents in affordable housing projects.

2021-S7235 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7235

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to rental
assistance and legal regulated rents in affordable housing projects

 
PURPOSE:

This bill is intended to allow public agencies that subsidize affordable
housing projects, such as the NYC Department of Housing Preservation and
Development, to provide rental assistance to cover rents that are higher
than the rents that might otherwise be permitted under rent regulation,
without affecting the legal rent beyond the period during which the
subsidy is available.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends article 13 of the private housing finance
law adding a new section 612 relating to rental assistance and legal

regulated rents.

Subdivision 1 of the new section 612 provides that where housing is
subject to a regulatory agreement requiring affordability with certain
public agencies and a public program provides rental assistance, the
regulatory agreement may allow the owner to collect rent up to the maxi-
mum payment standard or contract rent that the program may provide, even
if that amount exceeds the otherwise applicable legal regulated rent. If
the rental assistance ends upon a vacancy in the housing unit, the maxi-
mum rent shall be the lesser of the previously established legal regu-
lated rent, with any applicable adjustments by the rent guidelines board
or otherwise authorized by law, or any lower rent that is required by
the regulatory agreement.  If the rental assistance ends during a tenan-
cy, the maximum rent shall be the previously established legal regulated
rent with any applicable adjustments, the amount actually charged imme-
diately before the rental assistance began if it was lower than the
legal rent (i.e., if it was a "preferential rent"), with any applicable
adjustments, or any lower rent that is required by the regulatory agree-
ment.

Subdivision 2 of the new section 612 provides that any rent charged
pursuant to subdivision one in excess of the legal regulated rent shall
not be registered as the legal rent pursuant to the rent stabilization
laws, and that the landlord instead shall continue to register the legal
regulated rent and any preferential rent calculated according to appli-
cable guidelines increases applied to the previously established legal
regulated rent or preferential rent, respectively.

Subdivision 3 of the new section 612 provides for landlords to provide
notice to tenants, with initial and renewal leases, that if the tenant
ceases to receive rental assistance, the rent will be the legal regu-
lated rent, the preferential rent, or any lower rent required by the
regulatory agreement. The landlord is also required to disclose any
applicable regulatory agreement and the applicability of this section in
court cases against a tenant.

Subdivision 4 of the new section 612 provides that a landlord who is
required to adjust the rent when rental assistance ends but fails to do
so shall refund the amount of the overcharge and shall be liable for
treble damages.

Subdivision 5 of the new section 612 provides that where a regulatory
agreement allows a landlord to collect a rent that exceeds the otherwise
applicable legal rent, the public agency that executes the regulatory
agreement shall audit the landlord's records at least once every three
years to verify complying with the new section.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

Current law limits the full potential of certain rental assistance
programs to use rent stabilized units in affordable housing projects.
This unfortunately places serious limits on efforts to use rental
assistance to protect tenants, create and preserve affordable housing
with safe conditions, and ensure that buildings have the cash flow need-
ed to operate.

One such example involves supportive housing tenants receiving rental
assistance under New York City's "NYC 15/15" program, a city-funded
project-based rental assistance program for supportive housing.
Supportive housing helps formerly homeless New Yorkers, people with
disabilities, and other people in need by providing critical services to
support the transition to permanent, stable housing.

Under the NYC 15/15 program, rental assistance for units covered by a
NYC 15/15 contract increases by 2% annually, while tenants pay no more
than 30% of their income. It is expected that this income will be avail-
able to participating supportive housing projects and will be used to
pay for necessary operating costs, including the costs of supportive
services. NYC 15/15 units are also rent stabilized, however, and under
current law, the initial contract rent becomes a preferential rent that
may only be increased by Rent Guidelines Board (RGB) adjustments during
the life of a tenancy. RGB adjustments are not keeping pace with the 2%
annual increases anticipated by the NYC 15/15 program's structure,
creating shortfalls in the anticipated funding for these buildings. Over
time, these shortfalls will diminish the program's ability to subsidize
services tenants as well as necessary maintenance and repairs, and may
also put financial strain on already cash-strapped non-profits serving
tenants in need of affordable and supportive housing.

This bill will address the need to maximize the benefits of rental
assistance while the subsidies are available, without diminishing the
long-term affordability of the housing under rent stabilization.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S7235 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7235
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the private housing finance law, in relation  to  rental
   assistance and legal regulated rents in affordable housing projects
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The private housing finance law is amended by adding a  new
 section 610 to read as follows:
   §  610.  RENTAL  ASSISTANCE AND LEGAL REGULATED RENTS. 1. (A) NOTWITH-
 STANDING THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR
 THE RENT STABILIZATION LAW OF NINETEEN  HUNDRED  SIXTY-NINE,  ANY  REGU-
 LATION  PROMULGATED  PURSUANT TO SUCH ACT OR LAW, OR ANY OTHER PROVISION
 OF LAW, WHERE A HOUSING ACCOMMODATION IS SUBJECT TO A REGULATORY  AGREE-
 MENT  WITH A STATE OR MUNICIPAL AGENCY OR PUBLIC BENEFIT CORPORATION, OR
 A POLITICAL SUBDIVISION OF THE STATE, AND WHERE  A  FEDERAL,  STATE,  OR
 LOCAL PROGRAM PROVIDES RENTAL ASSISTANCE FOR SUCH HOUSING ACCOMMODATION,
 SUCH  STATE  OR MUNICIPAL AGENCY OR PUBLIC BENEFIT CORPORATION, OR POLI-
 TICAL SUBDIVISION OF THE STATE, MAY ALLOW IN SUCH  REGULATORY  AGREEMENT
 THE OWNER OF SUCH HOUSING ACCOMMODATION TO CHARGE AND COLLECT A RENT FOR
 SUCH  HOUSING ACCOMMODATION THAT (I) DOES NOT EXCEED THE MAXIMUM PAYMENT
 STANDARD OR CONTRACT RENT THAT THE RENTAL ASSISTANCE PROGRAM MAY PROVIDE
 FOR SUCH HOUSING ACCOMMODATION, BUT (II) DOES EXCEED THE LEGAL REGULATED
 RENT FOR THE HOUSING ACCOMMODATION.
   (B) IF ANY SUCH RENTAL ASSISTANCE ENDS UPON THE VACANCY OF THE HOUSING
 ACCOMMODATION, THE OWNER OF SUCH HOUSING ACCOMMODATION SHALL  THEREAFTER
 CHARGE  AND  COLLECT A RENT FOR SUCH HOUSING ACCOMMODATION THAT DOES NOT
 EXCEED THE LESSER OF (I) THE PREVIOUSLY ESTABLISHED LEGAL REGULATED RENT
 FOR SUCH HOUSING ACCOMMODATION, AS ADJUSTED BY THE MOST RECENT  APPLICA-
 BLE GUIDELINES INCREASES APPROVED BY A RENT GUIDELINES BOARD ESTABLISHED
 PURSUANT TO THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR
 AND ANY OTHER INCREASES AUTHORIZED BY LAW, REGARDLESS OF WHEN THE PREVI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11815-01-1

 S. 7235                             2
 
 OUSLY  ESTABLISHED  LEGAL  REGULATED RENT WAS LAST CHARGED, AND (II) ANY
 LOWER RENT THAT IS REQUIRED BY SUCH REGULATORY AGREEMENT.
   (C)  IF  ANY  SUCH RENTAL ASSISTANCE ENDS DURING A TENANCY, INCLUDING,
 BUT NOT LIMITED TO, UPON THE RENEWAL OF A LEASE, THE OWNER OF SUCH HOUS-
 ING ACCOMMODATION SHALL THEREAFTER CHARGE AND COLLECT A  RENT  FOR  SUCH
 HOUSING  ACCOMMODATION THAT DOES NOT EXCEED THE LESSER OF (I) THE PREVI-
 OUSLY ESTABLISHED LEGAL REGULATED RENT FOR SUCH  HOUSING  ACCOMMODATION,
 AS  ADJUSTED BY THE MOST RECENT APPLICABLE GUIDELINES INCREASES APPROVED
 BY A RENT GUIDELINES BOARD ESTABLISHED PURSUANT TO THE EMERGENCY  TENANT
 PROTECTION  ACT OF NINETEEN SEVENTY-FOUR AND ANY OTHER INCREASES AUTHOR-
 IZED BY LAW, REGARDLESS OF WHEN THE PREVIOUSLY ESTABLISHED  LEGAL  REGU-
 LATED  RENT  WAS  LAST CHARGED, (II) ANY RENT CHARGED TO AND PAID BY THE
 TENANT IMMEDIATELY PRIOR TO THE COMMENCEMENT OF  THE  RENTAL  ASSISTANCE
 THAT  WAS  LESS  THAN THE LEGAL REGULATED RENT FOR SUCH HOUSING ACCOMMO-
 DATION, AS ADJUSTED BY SUCH MOST RECENT APPLICABLE GUIDELINES  INCREASES
 AND ANY OTHER INCREASES AUTHORIZED BY LAW, AND (III) ANY LOWER RENT THAT
 IS REQUIRED BY SUCH REGULATORY AGREEMENT.
   2.  ANY  RENT  CHARGED  PURSUANT TO SUBDIVISION ONE OF THIS SECTION IN
 EXCESS OF THE LEGAL REGULATED RENT FOR A HOUSING ACCOMMODATION SHALL NOT
 BE REGISTERED AS THE LEGAL REGULATED  RENT  PURSUANT  TO  THE  EMERGENCY
 TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THE RENT STABILIZATION
 LAW  OF  NINETEEN HUNDRED SIXTY-NINE. THE OWNER OF SUCH HOUSING ACCOMMO-
 DATION SHALL CONTINUE TO REGISTER THE LEGAL REGULATED RENT AND ANY PREF-
 ERENTIAL RENT CALCULATED ACCORDING TO  APPLICABLE  GUIDELINES  INCREASES
 APPLIED  TO THE PREVIOUSLY ESTABLISHED LEGAL REGULATED RENT OR PREFEREN-
 TIAL RENT, RESPECTIVELY, AND SEPARATELY REGISTER THE ACTUAL RENT CHARGED
 TO THE TENANT PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
   3. WHERE THE OWNER OF A HOUSING ACCOMMODATION CHARGES AND  COLLECTS  A
 RENT  THAT  EXCEEDS  THE  LEGAL REGULATED RENT FOR SUCH HOUSING ACCOMMO-
 DATION PURSUANT TO SUBDIVISION ONE OF THIS  SECTION,  SUCH  OWNER  SHALL
 PROVIDE  EVERY  TENANT  OF  SUCH  HOUSING  ACCOMMODATION  WITH A NOTICE,
 ATTACHED TO THE INITIAL LEASE  AND  ALL  RENEWAL  LEASES,  ADVISING  THE
 TENANT  IN  PLAIN  LANGUAGE  THAT  IF  SUCH TENANT CEASES TO RECEIVE THE
 RENTAL ASSISTANCE DESCRIBED IN SUBDIVISION ONE OF THIS SECTION  FOR  ANY
 REASON, THE RENT FOR SUCH HOUSING ACCOMMODATION SHALL BE THE LEGAL REGU-
 LATED  RENT,  OR  ANY  LOWER RENT AS REQUIRED BY SUBDIVISION ONE OF THIS
 SECTION. THE OWNER SHALL DISCLOSE ANY  APPLICABLE  REGULATORY  AGREEMENT
 AND  THE  APPLICABILITY  OF THIS SECTION IN ANY LEGAL PROCEEDING BROUGHT
 AGAINST A TENANT WHOSE RENT IS GOVERNED BY THIS SECTION.
   4. AN OWNER OF A HOUSING ACCOMMODATION WHO FAILS TO ADJUST A RENT UPON
 THE TERMINATION OF ANY SUCH RENTAL ASSISTANCE AS REQUIRED BY SUBDIVISION
 ONE OF THIS SECTION SHALL REFUND TO THE TENANT THE AMOUNT OF  THE  OVER-
 CHARGE AND BE LIABLE FOR TREBLE DAMAGES. THE TENANT SHALL HAVE THE RIGHT
 TO  RECOVER SUCH OVERCHARGES AND DAMAGES FROM THE DATE OF THEIR ACCRUAL,
 NOTWITHSTANDING ANY STATUTE OF LIMITATIONS SET FORTH  IN  THE  EMERGENCY
 TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THE RENT STABILIZATION
 LAW  OF  NINETEEN HUNDRED SIXTY-NINE. THE TENANT MAY RAISE SUCH AN OVER-
 CHARGE AS A CLAIM OR DEFENSE IN ANY COURT OF  APPROPRIATE  JURISDICTION,
 OR  IN  A  PROCEEDING  AT THE DIVISION OF HOUSING AND COMMUNITY RENEWAL,
 PURSUANT TO THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR
 OR THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE.
   5. WHERE A REGULATORY AGREEMENT ALLOWS AN OWNER OF A HOUSING  ACCOMMO-
 DATION  TO  CHARGE AND COLLECT A RENT FOR THE HOUSING ACCOMMODATION THAT
 EXCEEDS THE LEGAL REGULATED  RENT  FOR  SUCH  HOUSING  ACCOMMODATION  IN
 ACCORDANCE  WITH SUBDIVISION ONE OF THIS SECTION, THE STATE OR MUNICIPAL
 AGENCY OR PUBLIC BENEFIT CORPORATION, OR POLITICAL  SUBDIVISION  OF  THE

 S. 7235                             3
 
 STATE,  THAT  HAS  EXECUTED  THE  REGULATORY  AGREEMENT SHALL AUDIT SUCH
 OWNER'S RECORDS AT LEAST ONCE EVERY THREE  YEARS  TO  VERIFY  THAT  SUCH
 OWNER IS COMPLYING WITH THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.

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Senate Bill S7235

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Sponsored By

Brian Kavanagh