S T A T E O F N E W Y O R K
________________________________________________________________________
2900--B
2023-2024 Regular Sessions
I N A S S E M B L Y
February 1, 2023
___________
Introduced by M. of A. GALLAGHER, L. ROSENTHAL, ZINERMAN, REYES, GONZA-
LEZ-ROJAS, JACKSON, DINOWITZ, EPSTEIN, SIMON, GLICK, KELLES, CARROLL,
SIMONE -- read once and referred to the Committee on Housing -- recom-
mitted to the Committee on Housing in accordance with Assembly Rule 3,
sec. 2 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- recommitted to the
Committee on Housing in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the real property tax law, in relation to directing the
comptroller of the city of New York to conduct annual audits of
compliance with the affordable New York housing program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 421-a of the real property tax law is amended by
adding two new subdivisions 18 and 19 to read as follows:
18. (A) THE COMPTROLLER OF THE CITY OF NEW YORK SHALL CONDUCT AN ANNU-
AL AUDIT OF THE AFFORDABLE NEW YORK HOUSING PROGRAM ESTABLISHED PURSUANT
TO THIS SECTION TO MEASURE COMPLIANCE WITH THE REQUIREMENTS OF THIS
SECTION. THE COMPTROLLER OF THE CITY OF NEW YORK SHALL CREATE A PROGRAM
TO AUDIT AND REVIEW PROPERTIES WHICH RECEIVE BENEFITS PURSUANT TO THE
AFFORDABLE NEW YORK HOUSING PROGRAM TO CONFIRM THAT OWNERS OF SUCH PROP-
ERTIES ARE COMPLYING WITH THE RENT REGISTRATION, AFFORDABILITY, RENT
STABILIZATION AND APPLICATION REQUIREMENTS OF SUCH PROGRAM. THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL, THE DEPARTMENT OF HOUSING PRESER-
VATION AND DEVELOPMENT, THE NEW YORK CITY DEPARTMENT OF FINANCE, AND ANY
OWNER OF A PROPERTY RECEIVING BENEFITS PURSUANT TO THIS SECTION SHALL
PROVIDE ANY AND ALL INFORMATION, DATA, OR DOCUMENTATION TO THE COMP-
TROLLER OF THE CITY OF NEW YORK WHICH IS DEEMED NECESSARY BY THE COMP-
TROLLER OF THE CITY OF NEW YORK IN ORDER TO COMPLETE THE AUDIT PROCESS
REQUIRED BY THIS SECTION OF LAW. THE INITIAL AUDIT SHALL BE COMPLETED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00166-11-4
A. 2900--B 2
ON OR BEFORE DECEMBER THIRTY-FIRST OF TWO THOUSAND TWENTY-FIVE. THE
COMPTROLLER OF THE CITY OF NEW YORK SHALL PUBLISH THE RESULTS OF THE
AUDIT ANNUALLY ON OR BEFORE DECEMBER THIRTY-FIRST AND SHALL MAKE SUCH
RESULTS PUBLICLY AVAILABLE ON THE COMPTROLLER'S WEBSITE. ALL PROPERTIES
WHICH ARE RECEIVING OR HAVE RECEIVED BENEFITS PURSUANT TO THE AFFORDABLE
NEW YORK HOUSING PROGRAM OR PRIOR PROGRAMS ESTABLISHED PURSUANT TO THIS
SECTION SHALL BE ELIGIBLE FOR THE INITIAL AUDIT; PROVIDED, HOWEVER, THAT
ONLY PROPERTIES WHICH RECEIVED BENEFITS DURING THE PRIOR YEAR SHALL BE
ELIGIBLE FOR SUBSEQUENT AUDITS. IN THE EVENT THAT THE AFFORDABLE NEW
YORK HOUSING PROGRAM IS TERMINATED OR OTHERWISE DISCONTINUED, A FINAL
AUDIT OF THE PROGRAM SHALL BE SUBMITTED ONE YEAR AFTER THE LAST PROPERTY
SUBJECT TO RENT REGISTRATION, AFFORDABILITY, RENT STABILIZATION AND
APPLICATION REQUIREMENTS OF THE PROGRAM IS NO LONGER SUBJECT TO SUCH
REQUIREMENTS.
(B) (I) IF AN AUDIT BY THE COMPTROLLER OF THE CITY OF NEW YORK FINDS
ANY UNITS ARE NOT IN COMPLIANCE WITH THE RENT REGISTRATION, AFFORDABILI-
TY, RENT STABILIZATION, AND APPLICATION REQUIREMENTS OF THE AFFORDABLE
NEW YORK HOUSING PROGRAM, THE COMPTROLLER OF THE CITY OF NEW YORK SHALL
PRESENT EVIDENCE OF SUCH NONCOMPLIANCE TO THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL, THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOP-
MENT, AND THE NEW YORK CITY DEPARTMENT OF FINANCE FOR ENFORCEMENT
ACTIONS AS PROVIDED. SUCH NOTIFICATION OF NONCOMPLIANCE SHALL BE MADE
WITHIN FIFTEEN DAYS AFTER THE RESULTS OF THE AUDIT HAVE BEEN PUBLISHED
ON THE COMPTROLLER'S WEBSITE.
(II) THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, THE DEPARTMENT OF
HOUSING PRESERVATION AND DEVELOPMENT, AND THE NEW YORK CITY DEPARTMENT
OF FINANCE SHALL ENFORCE AND REMEDY ANY NONCOMPLIANCE WITH THE RENT
REGISTRATION, AFFORDABILITY, RENT STABILIZATION, AND APPLICATION
REQUIREMENTS AS PROVIDED OR AVAILABLE UNDER ANY OTHER LAW, RULE, OR
REGULATION.
19. DURING AND ON AND AFTER THE EXPIRATION DATE OF THE AFFORDABLE NEW
YORK HOUSING PROGRAM BENEFIT PROVIDED PURSUANT TO THIS SECTION, PROVIDED
SUCH PROJECT IS REQUIRED TO COMPLY WITH ANY AFFORDABILITY REQUIREMENTS,
THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT SHALL IMPOSE,
AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD, A PENALTY FOR ANY VIOLATION
OF THE AFFORDABILITY REQUIREMENTS OF THIS SECTION BY SUCH PROJECT.
(A) THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT SHALL
ESTABLISH A SCHEDULE AND METHOD OF CALCULATION OF SUCH PENALTIES.
(B) A PENALTY UNDER THIS SUBDIVISION SHALL BE IMPOSED ON THE OWNER OF
THE ELIGIBLE SITE CONTAINING SUCH PROJECT AT THE TIME THE VIOLATION
OCCURRED.
(C) A FAILURE TO PAY SUCH FINE MAY RESULT IN A LIEN AND SUCH OTHER
REMEDIES AS MAY BE AVAILABLE PURSUANT TO APPLICABLE LAW AND REGULATION.
(D) THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT SHALL
ENSURE THE MINIMUM NUMBER OF REQUIRED AFFORDABLE UNITS ARE OFFERED IN
COMPLIANCE WITH THE APPROPRIATE AFFORDABILITY REQUIREMENTS AT ALL TIMES
SUCH AFFORDABILITY REQUIREMENTS APPLY. THIS INCLUDES, BUT IS NOT LIMITED
TO, FOR EACH UNIT DESIGNATED AS AN AFFORDABLE UNIT FOUND NOT TO BE IN
COMPLIANCE WITH THE AFFORDABILITY REQUIREMENTS, THE DEPARTMENT OF HOUS-
ING PRESERVATION AND DEVELOPMENT SHALL EITHER BRING SUCH DESIGNATED
AFFORDABLE UNIT INTO COMPLIANCE WITH THE AFFORDABILITY REQUIREMENTS OR
DESIGNATE ANOTHER UNIT OF SIMILAR SIZE AS AN AFFORDABLE UNIT IN SUBSTI-
TUTION OF THE ORIGINAL UNIT.
§ 2. Subparagraph (ii) of paragraph (f) of subdivision 2 of section
421-a of the real property tax law, as amended by chapter 289 of the
laws of 1985, is amended to read as follows:
A. 2900--B 3
(ii) with respect to units which become subject to the provisions of
this section after the effective date of this subparagraph, such tax
benefit period as provided in the opening paragraph of this paragraph or
applicable law or act shall have expired and either each lease and
renewal thereof for such unit for the tenant in residence at the time of
such decontrol has included a notice in at least twelve point type
informing such tenant that the unit shall become subject to such decon-
trol upon the expiration of such tax benefit period as provided in the
opening paragraph of this paragraph or applicable law or act and states
the approximate date on which such tax benefit period as provided in the
opening paragraph of this paragraph is scheduled to expire; or such unit
becomes vacant as provided under subparagraph (i) of this paragraph.
NEITHER A LANDLORD NOR ANY PERSON ACTING ON BEHALF OF THE LANDLORD SHALL
INCLUDE INCORRECT OR MISLEADING INFORMATION IN ANY NOTICE PROVIDED
PURSUANT TO THIS SUBPARAGRAPH. A LANDLORD OR ANY PERSON ACTING ON BEHALF
OF THE LANDLORD WHO WILLFULLY INCLUDES INFORMATION THEY KNOW OR REASON-
ABLY KNOW TO BE MISLEADING OR INCORRECT INFORMATION IN ANY NOTICE
PROVIDED PURSUANT TO THIS SUBPARAGRAPH OR FAILS TO PROVIDE THE STANDARD-
IZED RIDER PURSUANT TO PARAGRAPH (F-1) OF THIS SUBDIVISION IS GUILTY OF
A VIOLATION PUNISHABLE BY A FINE OF ONE THOUSAND DOLLARS.
§ 3. Subdivision 2 of section 421-a of the real property tax law is
amended by adding a new paragraph (f-1) to read as follows:
(F-1) THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL STAND-
ARDIZE THE NOTICE TO BE PROVIDED BY LANDLORDS TO THEIR TENANTS PURSUANT
TO SUBPARAGRAPH (II) OF PARAGRAPH (F) OF THIS SUBDIVISION. SUCH NOTICE
SHALL BE PRINTED IN AT LEAST TWELVE POINT TYPE AND SHALL INCLUDE THE
FOLLOWING LANGUAGE:
"421-A STANDARD RIDER FACT SHEET
ANY HOUSING UNIT THAT RECEIVES TAX BENEFITS UNDER SECTION 421-A OF THE
NEW YORK STATE REAL PROPERTY LAW MAY REMAIN AFFORDABLE FOR A PERIOD OF
TIME DEPENDING ON A VARIETY OF FACTORS, INCLUDING THE LOCATION OF THE
UNIT, THE COMMENCEMENT OF CONSTRUCTION AND THE AFFORDABILITY IN THE
PROJECT. FAILURE TO PROVIDE THE INITIAL STANDARDIZED RIDER MAY RESULT IN
THE UNIT REMAINING RENT STABILIZED FOR THE DURATION OF THE TENANCY.
SPECIFIC DETAILS RELATED TO YOUR UNIT ARE LISTED ON THE NEXT SHEET.
WHILE YOUR UNIT RECEIVES 421-A TAX BENEFITS, IT WILL BE SUBJECT TO RENT
STABILIZATION. NEW YORK STATE'S RENT REGULATION LAWS PROVIDE TENANTS IN
RENT-STABILIZED APARTMENTS WITH A VARIETY OF LEGAL RIGHTS AND
PROTECTIONS. THE OWNER OF YOUR BUILDING MUST PROVIDE YOU WITH A RENT
STABILIZED LEASE WHEN YOU FIRST MOVE IN AND ALSO EACH TIME YOU RENEW
YOUR LEASE FOR YOUR CHOICE OF EITHER A ONE OR TWO YEAR TERM, FOR AS LONG
AS YOUR APARTMENT REMAINS RENT STABILIZED.
YOU ARE ENTITLED TO CONTINUOUS LEASE RENEWALS WHILE YOUR APARTMENT IS
RENT STABILIZED. WHEN YOU RENEW YOUR LEASE, YOUR RENT MAY ONLY BE
INCREASED BY AN AMOUNT DETERMINED BY NEW YORK STATE'S RENT REGULATION
LAWS, WHICH MAY BE FOUND BY VISITING
HTTPS://RENTGUIDELINESBOARD.CITYOFNEWYORK.US/RESOURCES/RENT-
REGULATIONLAWS/, AND PERMITTED BY APPLICABLE TAX BENEFIT LAWS.
RENT INCREASES FOR RENT-STABILIZED TENANTS ARE DETERMINED BY THE NEW
YORK CITY RENT GUIDELINES BOARD, AND MAY ONLY INCREASE BY A SPECIFIED
AMOUNT WITHIN A ONE-YEAR OR TWO-YEAR LEASE TERM. FOR MORE INFORMATION,
PLEASE VISIT HTTPS://RENTGUIDELINESBOARD.CITYOFNEWYORK.US/ OR CALL 311.
RENT-STABILIZED TENANTS ARE ALSO ENTITLED TO PETITION THE NEW YORK STATE
HOMES AND COMMUNITY RENEWAL BY VISITING HTTPS://HCR.NY.GOV/ OR CALLING
(833) 499-0343 OR BY CONTACTING THE APPROPRIATE RENT ADMINISTRATION
BOROUGH OFFICE.
A. 2900--B 4
421-A RIDER - UNIT NUMBER
AS A RENT-REGULATED TENANT, YOUR RIGHTS ARE DETERMINED BY 421-A OF THE
NEW YORK STATE REAL PROPERTY LAW. FOR MORE INFORMATION, YOU MAY CONTACT
NEW YORK STATE HOUSING AND COMMUNITY RENEWAL BY CALLING (833) 499-0343
OR VISITING HTTPS://HCR.NY.GOV/ OR THE NEW YORK CITY DEPARTMENT OF HOUS-
ING PRESERVATION BY CALLING 311 OR VISITING
HTTPS://WWW1.NYC.GOV/SITE/HPD/INDEX.PAGE.
THE FIRST RENT AS OF DATE OF INITIAL LEASE COMMENCEMENT FOR UNIT APART-
MENT NUMBER___ IS AMOUNT ___.
BECAUSE UNIT NUMBER ____RECEIVES A 421-A TAX ABATEMENT, IT WILL BE RENT
REGULATED UNTIL AT LEAST MM/DD/YYYY.
CONSTRUCTION COMMENCED ON YOUR BUILDING, LOCATED AT ADDRESS ____ON
MM/DD/YYYY.
CONSTRUCTION WAS COMPLETED ON MM/DD/YYYY.
ON (MM/DD/YYYY SPECIFIC TO TENANT), YOUR LANDLORD CAN BEGIN TO INCREASE
THE RENT FOR UNIT NUMBER BY 2.2% EACH YEAR.
THE 421-A BENEFITS FOR UNIT NUMBER EXPIRE ON (MM/DD/YYYY). AFTER THE
EXPIRATION OF THE 421-A TAX ABATEMENT, YOUR UNIT WILL ___ (EITHER REMAIN
RENT-STABILIZED FOR THE DURATION OF YOUR TENANCY OR CONTINUE TO BE
PROTECTED DUE TO ADDITIONAL PROGRAMS OUTLINED BELOW).
UNIT NUMBER ALSO RECEIVES (LIST ANY OTHER CITY, STATE, FEDERAL AFFORDA-
BILITY PROGRAM) AND (THE IMPACT THAT HAS ON THE UNIT'S CONTINUING
AFFORDABILITY, THE DATE ON WHICH THOSE BENEFITS EXPIRE AND THE IMPACT OF
THE EXPIRATION OF THOSE BENEFITS ON THE UNIT).
IF YOU BELIEVE THAT ANY OF THE INFORMATION CONTAINED IN THIS RIDER IS
INCORRECT, CONTACT NEW YORK STATE HOMES AND COMMUNITY RENEWAL BY CALLING
(833) 499-0343 OR VISITING HTTPS://HCR.NY.GOV/ OR THE NEW YORK CITY
DEPARTMENT OF HOUSING PRESERVATION BY CALLING 311 OR VISITING
HTTPS://WWW1.NYC.GOV/SITE/HPD/INDEX.PAGE."
§ 4. This act shall take effect immediately.