S T A T E   O F   N E W   Y O R K
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                                    422
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Housing
 
 AN ACT to amend the administrative code of the city of New York and  the
   emergency  tenant protection act of nineteen seventy-four, in relation
   to eliminating the price index of  operating  costs  as  a  factor  in
   determining rent increases by the rent guidelines board
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision b of section 26-510 of the administrative  code
 of the city of New York, as amended by section 4 of part C of chapter 36
 of the laws of 2019, is amended to read as follows:
   b.  The  rent  guidelines  board shall establish annual guidelines for
 rent adjustments, and in determining whether rents for housing  accommo-
 dations  subject  to  the  emergency  tenant  protection act of nineteen
 seventy-four or this law shall be adjusted shall consider,  among  other
 things  (1) the economic condition of the residential real estate indus-
 try in the affected area including such factors as  the  prevailing  and
 projected  (i)  [real estate taxes and sewer and water rates, (ii) gross
 operating maintenance costs  (including  insurance  rates,  governmental
 fees,  cost  of  fuel and labor costs), (iii)] costs and availability of
 financing (including effective rates of interest), [(iv)] (II)  over-all
 supply  of  housing accommodations and over-all vacancy rates, (2) rele-
 vant data from the current and projected cost of living indices for  the
 affected  area,  (3) such other data as may be made available to it. Not
 later than July first of each year, the rent guidelines board shall file
 with the city clerk its findings for the preceding  calendar  year,  and
 shall  accompany  such  findings with a statement of the maximum rate or
 rates of rent adjustment, if any, for one or more  classes  of  accommo-
 dations  subject  to  this  law,  authorized  for leases or other rental
 agreements commencing on the next succeeding October first or within the
 twelve months thereafter. Such findings and statement shall be published
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00132-01-3
              

 A. 422                              2
 
 in the City Record. The rent guidelines board shall not establish annual
 guidelines for rent adjustments based on the current rental  cost  of  a
 unit  or  on  the  amount  of  time  that has elapsed since another rent
 increase was authorized pursuant to this title.
   §  2.  Subdivision  b  of section 4 of section 4 of chapter 576 of the
 laws of 1974, constituting the emergency tenant protection act of  nine-
 teen  seventy-four,  as  amended by chapter 486 of the laws of 1976, the
 opening paragraph as amended by section 3 of part Q of chapter 39 of the
 laws of 2019, and  the  second  and  third  undesignated  paragraphs  as
 amended chapter 330 of the laws of 1980, is amended to read as follows:
   b.  A  county  rent guidelines board shall establish annual guidelines
 for rent adjustments which, at its sole discretion  may  be  varied  and
 different  for  and  within  the  several zones and jurisdictions of the
 board, and in determining whether rents for housing accommodations as to
 which an emergency has been declared  pursuant  to  this  act  shall  be
 adjusted,  shall  consider among other things (1) the economic condition
 of the residential real estate industry in the affected  area  including
 such  factors as the prevailing and projected (i) [real estate taxes and
 sewer and water rates, (ii) gross operating maintenance costs (including
 insurance rates, governmental fees,  cost  of  fuel  and  labor  costs),
 (iii)] costs and availability of financing (including effective rates of
 interest),  [(iv)]  (II)  over-all  supply of housing accommodations and
 over-all vacancy rates, (2) relevant data from the current and projected
 cost of living indices for the affected area, (3) such other data as may
 be made available to it. As soon as practicable after its  creation  and
 thereafter  not  later  than  July first of each year, a rent guidelines
 board shall file with  the  state  division  of  housing  and  community
 renewal its findings for the preceding calendar year, and shall accompa-
 ny  such  findings with a statement of the maximum rate or rates of rent
 adjustment, if any, for one or more classes of accommodation subject  to
 this  act,  authorized  for leases or other rental agreements commencing
 during the next succeeding twelve months. The standards for rent adjust-
 ments may be applicable for the entire county or may be varied according
 to such zones or jurisdictions within such county  as  the  board  finds
 necessary to achieve the purposes of this subdivision. A rent guidelines
 board  shall  not establish annual guidelines for rent adjustments based
 on the current rental cost of a unit or on the amount of time  that  has
 elapsed  since  another  rent  increase  was authorized pursuant to this
 chapter.
   The standards for  rent  adjustments  established  annually  shall  be
 effective for leases commencing on October first of each year and during
 the next succeeding twelve months whether or not the board has filed its
 findings  and  statement of the maximum rate or rates of rent adjustment
 by July first of each year. If such lease is entered  into  before  such
 filing  by  the board, it may provide for the rent to be adjusted by the
 rates then in effect, subject to change by the applicable rates of  rent
 adjustment when filed, such change to be effective as of the date of the
 commencement  of  the  lease.  Said  lease must provide that, if the new
 rates of rent adjustment differ  for  leases  of  different  terms,  the
 tenant  has  the option of changing the original lease term to any other
 term for which a rate of rent adjustment is set by the board,  with  the
 rental to be adjusted accordingly.
   Where  a city, town or village shall act to determine the existence of
 public emergency pursuant to section three of this act subsequent to the
 establishment of annual guidelines for rent adjustments of the  accommo-
 dations  subject to this act, the rent guidelines board as soon as prac-
 A. 422                              3
 
 ticable thereafter shall file its findings and rates of rent  adjustment
 for  leases or other rental agreements for the housing accommodations in
 such a city, town or village, which rates shall be effective for  leases
 or  other rental agreements commencing on or after the effective date of
 the determination.
   § 3. This act shall take effect immediately; provided,  however,  that
 the  amendments to section 26-510 of the rent stabilization law of nine-
 teen hundred sixty-nine made by section one 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.