S T A T E O F N E W Y O R K
________________________________________________________________________
3416
2023-2024 Regular Sessions
I N A S S E M B L Y
February 3, 2023
___________
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. It is the intent of the legislature to clarify
that, for the purposes of the emergency tenant protection act of nine-
teen 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 applica-
tion of the law will be facilitated by including rental concessions and
their value in annual rent registration statements.
§ 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.
LBD00268-02-3
A. 3416 2
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. 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
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 THE EMERGENCY TENANT
PROTECTION ACT OF 1974.
§ 5. 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.