NY State Senate Bill 2023-S1101

Senate Bill S1101

2023-2024 Legislative Session

Prohibits the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement

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Current 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 03, 2024	referred to housing, construction and community development
Jan 10, 2023	referred to housing, construction and community development

co-Sponsors

2023-S1101 (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; amd §4, Emerg Hous Rent Cont L; amd §§26-512 & 26-405, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5945
2019-2020: S2180
2021-2022: S3341

2023-S1101 (ACTIVE) - Summary

Prohibits the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement.

2023-S1101 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1101

SPONSOR: BAILEY
 
TITLE OF BILL:

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 emer-
gency housing rent control law, in relation to prohibiting the
collection of rent arrearages accruing prior to the date of approval of
an application for an adjustment in the legal regulated rent based upon
a major capital improvement

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill prohibits the temporary retroactive rent increase or surcharge
prior to the approval of the MCI application for rent stabilized apart-
ments. Under current law, landlords are entitled to collect a retroac-
tive surcharge, which is the amount owed between the effective date and
the collectable date of the DHCR order granting the MCI. If the applica-
tion is approved, in addition to the increase becoming a part of the
tenants' base rent, the landlord is entitled to collect the increase
retroactively, between the "effective date" and "collectable date," in
the form of a temporary surcharge. The rent increase (the surcharge and

the base rent increase) cannot be collected from the tenants until the
application is approved, so the surcharge is collected temporarily in
addition to the increased base rent after the collectable date. This
bill would bring rent stabilized apartments in line with rent controlled
apartments, eliminating the retroactive temporary surcharge and allowing
landlords to begin collecting the increased base rent upon the collecta-
ble date or the date the application is approved.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 6 of section 4 of chapter 576 of the laws of
1974 by adding a new subdivision prohibiting any adjustment in the legal
regulated rent based upon a major capital improvement until the date of
approval of the application.

Section 2 amends the administrative code of the city ofòNew York by
adding a new subdivision prohibiting any adjustment in the legal regu-
lated rent based upon a major capital improvement until the date of
approval of the application.

Section 3 amends paragraph (a) of subdivision 4 of section 4 of chapter
274 of the laws of 1946 by prohibiting any adjustment in the legal regu-
lated rent based upon a major capital improvement until the date of
approval of the application.

Section 4 amends the administrative code of the city of New York by
adding a new subdivision prohibiting any adjustment in the legal regu-
lated rent based upon a major capital improvement until the date of
approval of the application.

Section 5 establishes the effective date.

 
JUSTIFICATION:

Under current law, in addition to the cost of a MCI becoming part of the
tenants' base rent, the landlord is entitled to collect a temporary
retroactive surcharge, which is the amount owed between the effective
date and the collectable date of the DHCR order granting the MCI. This
bill will eliminate the undue burden created by the combined effect of
the permanence of the increase and the retroactive temporary surcharge
by eliminating the temporary surcharge. This will create consistency
between rent stabilized and rent controlled apartments, eliminating the
retroactive temporary surcharge and allowing landlords to begin collect-
ing the increased base rent upon the collectable date or the date the
application is approved.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: Referred to Housing, Construction, and Community Development

2021-22: Referred to Housing, Construction, and Community Development

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately, except the amendments to section
4 of the emergency tenant protection act shall expire on the date the
act expires, the amendments to section 26-512 of the NYCRR shall expire
on the date the law expires and the amendments to section 4 of the emer-
gency housing rent control law shall expire on the date the law expires.

2023-S1101 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1101
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by Sens. BAILEY, MAYER, SEPULVEDA, SERRANO -- 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, the administrative code of the city of New York and the emer-
   gency housing  rent  control  law,  in  relation  to  prohibiting  the
   collection  of  rent arrearages accruing prior to the date of approval
   of an application for an adjustment in the legal regulated rent  based
   upon a major capital improvement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 6 of section 4 of chapter 576 of the laws  of  1974
 constituting  the  emergency  tenant protection act of nineteen seventy-
 four is amended by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION  TO  THE
 CONTRARY,  ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A MAJOR
 CAPITAL IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION
 THEREFOR.  NO  INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO
 THE DATE OF APPROVAL OF THE APPLICATION.
   § 2. Section 26-512 of the administrative code of the city of New York
 is amended by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION  TO  THE
 CONTRARY,  ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A MAJOR
 CAPITAL IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION
 THEREFOR.  NO  INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO
 THE DATE OF APPROVAL OF THE APPLICATION.
   § 3. Subparagraph 10 of the second undesignated paragraph of paragraph
 (a) of subdivision 4 of section 4 of chapter 274 of the  laws  of  1946,
 constituting  the  emergency  housing  rent  control  law, as amended by
 section 25 of part B of chapter 97 of the laws of 2011, is amended and a
 new subparagraph 11 is added to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03319-01-3

 S. 1101                             2
 
   (10)   the presence of unique  or  peculiar  circumstances  materially
 affecting  the  maximum  rent  has  resulted  in a maximum rent which is
 substantially lower than the rents generally prevailing in the same area
 for substantially similar housing accommodations[.];  OR  (11)  NOTWITH-
 STANDING ANY PROVISION OF LAW OR RULE OR REGULATION TO THE CONTRARY, ANY
 ADJUSTMENT  IN  THE  LEGAL  REGULATED  RENT  BASED  UPON A MAJOR CAPITAL
 IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION  THERE-
 FOR.  NO  INCREASE  MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO THE
 DATE OF APPROVAL OF THE APPLICATION.
   § 4. Paragraph 1 of subdivision g of section 26-405 of the administra-
 tive code of the city of New York is amended by adding  a  new  subpara-
 graph (p) to read as follows:
   (P)  NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION TO THE
 CONTRARY, ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A  MAJOR
 CAPITAL  IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE APPLICATION
 THEREFOR. NO INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME  PRIOR  TO
 THE DATE OF APPROVAL OF THE APPLICATION.
   § 5. This act shall take effect immediately; provided that:
   a.  the  amendments  to section 26-512 of chapter 4 of title 26 of the
 administrative code of the city of New York made by section two 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; and
   b.  the  amendments  to  section 26-405 of the city rent and rehabili-
 tation law made by section four of this act shall remain in  full  force
 and effect only as long as the public emergency requiring the regulation
 and control of residential rents and evictions continues, as provided in
 subdivision  3  of section 1 of the local emergency housing rent control
 act.

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Senate Bill S1101

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Sponsored By

Jamaal T. Bailey