NY State Senate Bill 2023-S6352

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 09, 2024	print number 6352c
Feb 09, 2024	amend and recommit to housing, construction and community development
Feb 05, 2024	print number 6352b
Feb 05, 2024	amend (t) and recommit to housing, construction and community development
Jan 03, 2024	referred to housing, construction and community development
Jun 06, 2023	print number 6352a
Jun 06, 2023	amend and recommit to housing, construction and community development
Apr 17, 2023	referred to housing, construction and community development

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2023-S6352 - Details

See Assembly Version of this Bill:: A6772
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, add §§26-511.2 & 26-513.1, NYC Ad Cd; amd §§6, 10 & 9, Emerg Ten Prot Act of 1974
Versions Introduced in 2025-2026 Legislative Session:: S6904, A7757

2023-S6352 - Summary

Provides that when a housing accommodation has been vacated after continuous tenancy or occupancy of ten years or more prior to vacancy, and the owner can demonstrate restoration of the unit, the new legal regulated rent shall be the rent agreed to by the owner and first tenant after such restoration and reserved in a lease or other rental agreement; makes related provisions.

2023-S6352 - Sponsor Memo

                                 
BILL NUMBER: S6352

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to certain housing accommodations; and to amend chapter 576 of
the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, in relation to certain hardship provisions

 
PURPOSE:

To preserve, and restore to the rental market, rent-stabilized dwelling
units vacated after extended occupancies by setting forth a procedure in
law that will require documentary submissions demonstrating subject
units to be lead-free under applicable local definitions and to have
undergone code-compliant modernization with tenant protection plans in
place. Further, to set forth a process and requirements for setting
legal regulated rents for qualifying units commensurate with legal regu-
lated rents of substantially similar units in the same geographic areas

 
SUMMARY OF PROVISIONS:

Adds a new paragraph 15 to subdivision c of Section 26-511 of the New
York City Administrative Code, and a new paragraph 6 to subdivision d of
Section 6 of the Emergency Tenant Protection Act, both authorizing the
adjustment of the legal regulated rents of housing accommodations having
undergone documented restoration when vacated after continuous tenancies
or occupancies of ten years or more.

Adds a new section 26-511.2 of the New York City Administrative Code,
and a new subdivision (a-1) to Section 10 of the Emergency Tenant
Protection Act, which both set forth the documentation submission
requirements for restored units to qualify for legal regulated rent
adjustment, certain limitations, and the requirements for an audit proc-
ess by the Division of Housing & Community Renewal.

Adds a new section 26-513.1 of the New York City Administrative Code,
and a new subdivision (d-1) to Section 9 of the Emergency Tenant
Protection Act, which both set forth requirements for tenant applica-
tions for adjustment of legal regulated rents established under this act
and criteria for assessment of such applications and legal regulated
rents established under this act.

 
JUSTIFICATION:

With regulated housing options scarce for middle- and low-income fami-
lies, this bill would create a process that would allow for restoration
to the regulated rental market units vacated after long-term tenancies
or occupancies that have been brought into compliance with applicable
local definitions for lead-free housing accommodations and have other-
wise undergone modernization in accordance with applicable code and
construction requirements. This bill further requires that property
owners submit to the Division of Housing and Community Renewal certain
documentation establishing entitlement to adjust the legal regulated
rent of qualifying restored units and to allow for confirmation that any
legal regulated rent established under this act does not exceed the
legal regulated rent of a substantially similar unit in the same
geographic area. This bill will provide incentives to improve rent-regu-
lated housing stock while restoring units to the rental market and
promoting the health, safety, and welfare of current and new tenants

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

TBD.

 
EFFECTIVE DATE:
Immediately.

2023-S6352 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6352
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 17, 2023
                                ___________
 
 Introduced by Sens. COMRIE, FERNANDEZ, SEPULVEDA, MANNION, PARKER, RYAN,
   SCARCELLA-SPANTON, SKOUFIS -- 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 administrative code of the  city  of  New  York,  in
   relation  to  certain housing accommodations; and to amend chapter 576
   of the laws of 1974, constituting the emergency tenant protection  act
   of nineteen seventy-four, in relation to certain hardship provisions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision c of section 26-511 of the administrative  code
 of  the city of New York is amended by adding a new paragraph 15 to read
 as follows:
   (15) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS  CHAP-
 TER  TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT TO THIS CHAP-
 TER HAS BEEN VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN  YEARS
 OR  MORE  PRIOR TO VACANCY, AND THE OWNER HAS SUBMITTED DOCUMENTATION TO
 THE DIVISION DEMONSTRATING RESTORATION OF  THE  UNIT  AS  SET  FORTH  IN
 SECTION  26-511.2 OF THIS CHAPTER, THE NEW LEGAL REGULATED RENT SHALL BE
 THE RENT AGREED TO BY THE OWNER AND FIRST TENANT AFTER SUCH  RESTORATION
 AND  RESERVED  IN  A LEASE OR OTHER RENTAL AGREEMENT; PROVIDED THAT SUCH
 NEW LEGAL REGULATED RENT MAY BE ADJUSTED ON AUDIT BY THE DIVISION  UNDER
 SECTION  26-511.2  OF  THIS CHAPTER, OR ON APPLICATION OF A TENANT UNDER
 SECTION 26-513.1 OF THIS CHAPTER. THE LEGAL  REGULATED  RENT  ADJUSTMENT
 SET  FORTH IN THIS PARAGRAPH SHALL BE KNOWN AS THE LOCAL REGULATED HOUS-
 ING RESTORATION ADJUSTMENT.
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 26-511.2 to read as follows:
   § 26-511.2 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  A. THE
 DIVISION  OF  HOUSING AND COMMUNITY RENEWAL, THE "DIVISION" SHALL ESTAB-
 LISH A NOTIFICATION PROCEDURE AND  DOCUMENTATION  SUBMISSION  GUIDELINES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10320-04-3

 S. 6352                             2
 
 FOR  THE  LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  DOCUMENTATION
 TO QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT  SHALL
 BE LIMITED TO:
   (1)  XRF  TEST RESULTS DEMONSTRATING A LEAD-FREE HOUSING ACCOMMODATION
 UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION  PLANS  OR  SIMILAR  SUBMISSION  IN
 CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT; AND
   (7)  LEGAL  REGULATED RENT AMOUNT OR AMOUNTS FOR SUBSTANTIALLY SIMILAR
 UNIT OR UNITS AS DEFINED BY SECTION 26-513.1 OF THIS CHAPTER.
   B. THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT  SHALL  NOT  BE
 PERMITTED:
   (1)  FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2) FOR UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH  PERIOD  AFTER
 DETERMINATION  BY  THE  DIVISION  THAT THE OWNER HAS ENGAGED IN UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT; OR
   (3) AFTER AN EVICTION, UNLESS THE  EVICTION  WAS  PURSUANT  TO  ORDER,
 JUDGMENT,  OR  OTHER  DECREE BY COURT OR GOVERNMENTAL OR LEGAL AUTHORITY
 FOR REASONS INCLUDING NONPAYMENT OF RENT, EXPIRATION OR  TERMINATION  OF
 THE  LEASE  TERM  OR  LICENSE  OR  OTHER OCCUPANCY RIGHT, VIOLATION OF A
 SUBSTANTIAL OBLIGATION OF THE TENANCY, OR ANY  OTHER  GROUNDS  PERMITTED
 UNDER THIS CHAPTER.
   C.  THE DIVISION SHALL ESTABLISH AN AUDIT PROCESS TO REVIEW A PERCENT-
 AGE, AS ESTABLISHED BY THE  DIVISION,  OF  HOUSING  ACCOMMODATIONS  THAT
 REGISTER  ADJUSTED LEGAL REGULATED RENTS UNDER THE LOCAL REGULATED HOUS-
 ING RESTORATION ADJUSTMENT.   THE DIVISION'S ESTABLISHED  AUDIT  PROCESS
 SHALL BE SUBJECT TO THE FOLLOWING REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET  FORTH  IN  SUBDIVISION  A  OF THIS SECTION HAS BEEN SUBMITTED; (II)
 VISUAL INSPECTION OF THE SUBJECT UNIT; AND (III) REVIEW  OF  THE  UNIT'S
 REGISTERED  RENT  IN COMPARISON TO THE LEGAL REGULATED RENTS OF SUBSTAN-
 TIALLY SIMILAR  HOUSING  ACCOMMODATIONS  IN  THE  SAME  GEOGRAPHIC  AREA
 CONSIDERING THE SAME FACTORS SET FORTH IN SECTION 26-513.1 OF THIS CHAP-
 TER, INCLUDING THE OWNER'S RIGHT TO SUBMIT THE LEGAL REGULATED RENT OF A
 SUBSTANTIALLY SIMILAR UNIT OR UNITS. SUCH AUDIT SHALL BE INITIATED WITH-
 IN ONE YEAR OF THE FILING OF AN ANNUAL APARTMENT REGISTRATION INDICATING
 AN  ADJUSTMENT  TO  THE  LEGAL  REGULATED RENT UNDER THE LOCAL REGULATED
 HOUSING RESTORATION ADJUSTMENT.
   (2) IF AN AUDIT UNDER THIS SUBDIVISION DETERMINES THAT  AN  OWNER  HAS
 FAILED  TO  SUBMIT  DOCUMENTATION  SET  FORTH  IN  SUBDIVISION A OF THIS
 SECTION AND THE OWNER THEN FAILS TO  SUBMIT  ANY  MISSING  DOCUMENTATION
 AFTER  SIXTY  DAYS'  WRITTEN  NOTICE FROM THE DIVISION, THE DIVISION MAY
 THEN SET THE SUBJECT UNIT'S LEGAL REGULATED RENT BASED  UPON  AN  EVALU-
 ATION  OF  DOCUMENTATION  PROVIDED BUT IN NO EVENT SHALL THE LEGAL REGU-
 LATED RENT BE SET AT AN AMOUNT LESS THAN HUD FAIR MARKET VALUE  FOR  THE
 STATISTICAL  METROPOLITAN  AREA  OR  THE  SMALL AREA FAIR MARKET RENT AS
 DETERMINED BY THE LOCAL HOUSING AUTHORITY PROVIDED THAT APPLICABLE HOUS-
 ING QUALITY STANDARDS HAVE BEEN CONFIRMED BY INSPECTION AS SET FORTH  IN
 THIS SECTION.
   (3)  IF  AN  AUDIT  UNDER  THIS  SUBDIVISION DETERMINES THAT THE OWNER
 SUBMITTED DOCUMENTATION SET FORTH IN SUBDIVISION A OF THIS  SECTION  BUT
 THAT  THE  REGISTERED  RENT  EXCEEDS  THE  LEVEL PERMITTED UNDER SECTION
 S. 6352                             3
 
 26-513.1 OF THIS CHAPTER, THE DIVISION MAY SET THE LEGAL REGULATED  RENT
 AT  THE  GREATER OF THE LEGAL REGULATED RENT FOR A SUBSTANTIALLY SIMILAR
 HOUSING ACCOMMODATION IN THE SAME GEOGRAPHIC AREA OR THE HUD FAIR MARKET
 VALUE  FOR  THE  STATISTICAL  METROPOLITAN  AREA  OR THE SMALL AREA FAIR
 MARKET RENT AS DETERMINED BY THE LOCAL HOUSING AUTHORITY.  ANY  REQUIRED
 REFUNDS  SHALL BE MADE IN ACCORDANCE WITH SECTION 26-513.1 OF THIS CHAP-
 TER.
   D. ACCESS TO THE DOCUMENTATION SUBMITTED AS PART OF  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME LAWS
 GOVERNING ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH  THE
 DIVISION.
   §  3.  The  administrative  code of the city of New York is amended by
 adding a new section 26-513.1 to read as follows:
   § 26-513.1 APPLICATION  FOR  ADJUSTMENT  OF  LOCAL  REGULATED  HOUSING
 RESTORATION  ADJUSTMENT.  A.  THE TENANT OF A HOUSING ACCOMMODATION THAT
 WAS VACANT ON, OR BECAME VACANT AFTER,  JUNE  14,  2019,  AND  HAS  BEEN
 SUBJECT  TO THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE
 WITH THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL WITHIN  120  DAYS
 AFTER  NOTICE  HAS  BEEN RECEIVED UNDER SUBDIVISION C OF THIS SECTION AN
 APPLICATION FOR THE ADJUSTMENT OF THE RENT  FOR  SUCH  HOUSING  ACCOMMO-
 DATION. SUCH APPLICATIONS SHALL BE SUBJECT TO THE FOLLOWING:
   (1)  IN  THE  APPLICATION, THE TENANT MUST ALLEGE THAT THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE RENT FOR  SUBSTAN-
 TIALLY SIMILAR UNITS WITHIN THE SAME GEOGRAPHIC AREA.
   (2)  IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER SHALL ONLY CONSIDER LEGAL REGULATED RENTS FOR SUBSTANTIALLY
 SIMILAR HOUSING ACCOMMODATIONS WITHIN A ONE-MILE RADIUS OF  THE  SUBJECT
 UNIT  IN THE SAME BOROUGH OR APPLICABLE MUNICIPAL SUBDIVISION.  SUBSTAN-
 TIALLY SIMILAR HOUSING ACCOMMODATIONS ARE  THOSE  RENT-STABILIZED  UNITS
 WITH  SIMILAR  ROOM  COUNTS  AND  SQUARE FOOTAGE, SIMILAR LEVELS OF CODE
 COMPLIANCE, INCLUDING STATE LAWS, LOCAL LAWS AND CODES FOR HEALTH, SAFE-
 TY, AND ENVIRONMENTAL SUSTAINABILITY, SIMILAR REGULATORY STATUS, SIMILAR
 APARTMENT CONDITIONS AND QUALITY OF FIXTURES AND FINISHES, SIMILAR  UNIT
 AND  BUILDING  AMENITIES,  SIMILAR QUALITY AND CONDITION OF THE BUILDING
 AND COMMON AREAS, AND WITH VACANCY OR  RENEWAL  LEASES  STARTING  WITHIN
 TWELVE  MONTHS  FROM  THE START DATE OF THE COMPLAINING TENANT'S VACANCY
 LEASE.  FOR PURPOSES OF CONSIDERING LEGAL  REGULATED  RENTS  OF  SIMILAR
 HOUSING  ACCOMMODATIONS,  THE  GEOGRAPHIC AREA MAY BE EXPANDED BY INCRE-
 MENTS OF ONE-QUARTER MILE RADII AS MANY TIMES AS  NECESSARY  TO  FIND  A
 SUBSTANTIALLY  SIMILAR HOUSING ACCOMMODATION LOCATED IN THE SAME BOROUGH
 OR APPLICABLE MUNICIPAL SUBDIVISION.  NOTWITHSTANDING THE FOREGOING, ANY
 LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT RENT AMOUNT THAT DOES NOT
 EXCEED THE HUD FAIR MARKET VALUE FOR THE STATISTICAL  METROPOLITAN  AREA
 OR  THE  SMALL  AREA FAIR MARKET RENT AS DETERMINED BY THE LOCAL HOUSING
 AUTHORITY SHALL BE DETERMINED TO BE FAIR.
   (3) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO  AN  APPLICATION
 UNDER  THIS  SECTION  SHALL  BE  GIVEN AN OPPORTUNITY TO SUBMIT PROOF OF
 LEGAL REGULATED RENTS FOR UP  TO  THREE  SUBSTANTIALLY  SIMILAR  HOUSING
 ACCOMMODATIONS,  IN  ADDITION  TO  ANY  ALREADY SUBMITTED AS PART OF THE
 NOTIFICATION PROCEDURE UNDER SECTION 26-511.2 OF THIS CHAPTER.
   (4) WHEN THE  LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT  RENT
 AMOUNT  IS  DETERMINED TO EXCEED THE LEGAL REGULATED RENT FOR A SUBSTAN-
 TIALLY SIMILAR HOUSING ACCOMMODATION AS DEFINED  BY  THIS  SECTION,  THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ORDER THAT THE LEGAL
 REGULATED  RENT  FOR  THE SUBJECT UNIT SHALL BE THE GREATER OF THE LEGAL
 REGULATED RENT FOR A SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION IN  THE
 S. 6352                             4
 
 SAME  GEOGRAPHIC  AREA  OR THE HUD FAIR MARKET VALUE FOR THE STATISTICAL
 METROPOLITAN AREA OR THE SMALL AREA FAIR MARKET RENT  AS  DETERMINED  BY
 THE  LOCAL HOUSING AUTHORITY.  ANY REQUIRED REFUNDS SHALL BE MADE BY THE
 OWNER  IN  CASH  OR AS A CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT TO
 EXCEED OF SIX MONTHS.
   B. NOTWITHSTANDING SUBDIVISION A OF THIS SECTION,  PROVIDED  THAT  THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION A OF SECTION 26-511.2 OF THIS CHAPTER,  THE  DIVISION  SHALL
 ONLY  DETERMINE  WHETHER  THE RENT CHARGED TO THE FIRST TENANT AFTER THE
 LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT IS SUPPORTED BY THE  RENT
 FOR  A SUBSTANTIALLY SIMILAR UNIT.  ANY DOCUMENTATION DEFICIENCIES SHALL
 BE RESOLVED THROUGH THE AUDIT PROCESS SET FORTH IN SECTION  26-511.2  OF
 THIS CHAPTER.
   C.  IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION  ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING  BY  CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE TENANT HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF  HOUS-
 ING  AND  COMMUNITY RENEWAL THAT THE LOCAL REGULATED HOUSING RESTORATION
 ADJUSTMENT WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL  REGU-
 LATED  RENT,  A  DESCRIPTION OF WORK COMPLETED, THE BUILDING ADDRESS AND
 LEGAL REGULATED RENT AMOUNTS FOR AT LEAST ONE AND UP TO  THREE  SUBSTAN-
 TIALLY  SIMILAR  UNITS,  AND  SUCH TENANT'S RIGHT TO FILE AN APPLICATION
 CHALLENGING THE NEW LEGAL REGULATED RENT OF SUCH HOUSING ACCOMMODATION.
   § 4. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
 576 of the laws of 1974, constituting the  emergency  tenant  protection
 act  of  nineteen seventy-four, as amended by chapter 102 of the laws of
 1984, is amended and a new paragraph 6 is added to read as follows:
   (5) as an alternative to the hardship application provided under para-
 graph four of this subdivision, owners of buildings acquired by the same
 owner or a related entity owned by the same principals three years prior
 to the date of application may apply to the division  for  increases  in
 excess  of the level of applicable guideline increases established under
 this law based on a finding by  the  commissioner  that  such  guideline
 increases  are  not sufficient to enable the owner to maintain an annual
 gross rent income for such building which exceeds the  annual  operating
 expenses  of  such  building  by a sum equal to at least five percent of
 such gross rent. For the purposes of this paragraph, operating  expenses
 shall  consist  of  the actual, reasonable, costs of fuel, labor, utili-
 ties, taxes, other than  income  or  corporate  franchise  taxes,  fees,
 permits,  necessary  contracted services and non-capital repairs, insur-
 ance, parts and supplies, management fees and other administrative costs
 and mortgage interest. For the  purposes  of  this  paragraph,  mortgage
 interest  shall  be  deemed  to  mean  interest  on a bona fide mortgage
 including an allocable portion of charges related thereto.  Criteria  to
 be considered in determining a bona fide mortgage other than an institu-
 tional  mortgage  shall  include; condition of the property, location of
 the property, the existing mortgage market at the time the  mortgage  is
 placed,  the  term of the mortgage, the amortization rate, the principal
 amount of the mortgage, security and other terms and conditions  of  the
 mortgage.  The  commissioner shall set a rental value for any unit occu-
 pied by the owner or a person related to the owner or unoccupied at  the
 owner's  choice  for more than one month at the last regulated rent plus
 the minimum number of guidelines increases or, if no such regulated rent
 existed or is known, the commissioner shall  impute  a  rent  consistent
 S. 6352                             5
 
 with  other rents in the building. The amount of hardship increase shall
 be such as may be required to maintain the annual gross rent  income  as
 provided  by  this  paragraph.  The  division shall not grant a hardship
 application  under  this paragraph or paragraph four of this subdivision
 for a period of three years subsequent to granting a  hardship  applica-
 tion  under  the  provisions  of  this  paragraph. The collection of any
 increase in the rent for any  housing  accommodation  pursuant  to  this
 paragraph  shall  not  exceed six percent in any year from the effective
 date of the order granting the increase over the rent set forth  in  the
 schedule  of gross rents, with collectability of any dollar excess above
 said sum to be spread forward in similar increments  and  added  to  the
 rent  as  established  or  set  in future years. No application shall be
 approved unless the owner's equity in such building exceeds five percent
 of: (i) the arms length purchase price of the property; (ii) the cost of
 any capital improvements  for  which  the  owner  has  not  collected  a
 surcharge; (iii) any repayment of principal of any mortgage or loan used
 to  finance the purchase of the property or any capital improvements for
 which the owner has not collected a surcharge; and (iv) any increase  in
 the  equalized  assessed value of the property which occurred subsequent
 to the first valuation of the property after purchase by the owner.  For
 the purposes of this paragraph, owner's equity shall mean the sum of (i)
 the purchase price of the property less the principal of any mortgage or
 loan  used to finance the purchase of the property, (ii) the cost of any
 capital improvement for which the owner has not  collected  a  surcharge
 less the principal of any mortgage or loan used to finance said improve-
 ment,  (iii) any repayment of the principal of any mortgage or loan used
 to finance the purchase of the property or any capital  improvement  for
 which  the owner has not collected a surcharge, and (iv) any increase in
 the equalized assessed value of the property which  occurred  subsequent
 to  the  first valuation of the property after purchase by the owner[.];
 OR
   (6) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER
 TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT  TO  THIS  CHAPTER
 HAS  BEEN  VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN YEARS OR
 MORE PRIOR TO VACANCY, AND THE OWNER HAS SUBMITTED DOCUMENTATION TO  THE
 DIVISION  DEMONSTRATING RESTORATION OF THE UNIT AS SET FORTH IN SUBDIVI-
 SION (A-1) OF SECTION TEN OF THIS CHAPTER, THE NEW LEGAL REGULATED  RENT
 SHALL  BE  THE  RENT  AGREED TO BY THE OWNER AND FIRST TENANT AFTER SUCH
 RESTORATION AND RESERVED IN A LEASE OR OTHER RENTAL AGREEMENT;  PROVIDED
 THAT SUCH NEW LEGAL REGULATED RENT MAY BE ADJUSTED ON AUDIT BY THE DIVI-
 SION  UNDER  SUBDIVISION  (A-1)  OF  SECTION  TEN OF THIS SECTION, OR ON
 APPLICATION OF A TENANT UNDER SUBDIVISION D-1 OF SECTION  NINE  OF  THIS
 CHAPTER. THE LEGAL REGULATED RENT ADJUSTMENT SET FORTH IN THIS PARAGRAPH
 SHALL BE KNOWN AS THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.
   §  5.  Section  10  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 (a-1) to read as follows:
   (A-1)  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH A
 NOTIFICATION PROCEDURE AND DOCUMENTATION SUBMISSION GUIDELINES  FOR  THE
 LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT.  A. DOCUMENTATION TO
 QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT SHALL  BE
 LIMITED TO:
   (1)  XRF  TEST RESULTS DEMONSTRATING A LEAD-FREE HOUSING ACCOMMODATION
 UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION  PLANS  OR  SIMILAR  SUBMISSION  IN
 CONNECTION WITH SUCH RESTORATION;
 S. 6352                             6
 
   (3) ANY REQUIRED CONTRACTOR LICENSES;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT; AND
   (7)  LEGAL  REGULATED RENT AMOUNT OR AMOUNTS FOR SUBSTANTIALLY SIMILAR
 UNIT OR UNITS AS DEFINED BY SECTION 26-513.1 OF THE ADMINISTRATIVE  CODE
 OF THE CITY OF NEW YORK.
   B.  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT SHALL NOT BE
 PERMITTED:
   (1) FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD  AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2)  FOR  UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH PERIOD AFTER
 DETERMINATION BY THE DIVISION THAT THE OWNER  HAS  ENGAGED  IN  UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT; OR
   (3)  AFTER  AN  EVICTION,  UNLESS  THE EVICTION WAS PURSUANT TO ORDER,
 JUDGMENT, OR OTHER DECREE BY COURT OR GOVERNMENTAL  OR  LEGAL  AUTHORITY
 FOR  REASONS  INCLUDING NONPAYMENT OF RENT, EXPIRATION OR TERMINATION OF
 THE LEASE TERM OR LICENSE OR  OTHER  OCCUPANCY  RIGHT,  VIOLATION  OF  A
 SUBSTANTIAL  OBLIGATION  OF  THE TENANCY, OR ANY OTHER GROUNDS PERMITTED
 UNDER THIS CHAPTER.
   C. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL  SHALL  ESTABLISH  AN
 AUDIT PROCESS TO REVIEW A PERCENTAGE, AS ESTABLISHED BY THE DIVISION, OF
 HOUSING  ACCOMMODATIONS  THAT  REGISTER  ADJUSTED  LEGAL REGULATED RENTS
 UNDER THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT.    THE  DIVI-
 SION'S  ESTABLISHED  AUDIT  PROCESS  SHALL  BE  SUBJECT TO THE FOLLOWING
 REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED SUBDIVISION TO: (I)  CONFIRMATION  THAT
 DOCUMENTATION  SET  FORTH  IN  PARAGRAPH  A OF THIS SUBDIVISION HAS BEEN
 SUBMITTED, (II) VISUAL INSPECTION OF THE SUBJECT UNIT, AND (III)  REVIEW
 OF THE UNIT'S REGISTERED RENT IN COMPARISON TO THE LEGAL REGULATED RENTS
 OF  SUBSTANTIALLY  SIMILAR HOUSING ACCOMMODATIONS IN THE SAME GEOGRAPHIC
 AREA CONSIDERING THE SAME  FACTORS  SET  FORTH  IN  SUBDIVISION  D-1  OF
 SECTION  NINE OF THIS CHAPTER, INCLUDING THE OWNER'S RIGHT TO SUBMIT THE
 LEGAL REGULATED RENT OF A SUBSTANTIALLY  SIMILAR  UNIT  OR  UNITS.  SUCH
 AUDIT  SHALL  BE  INITIATED  WITHIN  ONE YEAR OF THE FILING OF AN ANNUAL
 APARTMENT REGISTRATION INDICATING AN ADJUSTMENT TO THE  LEGAL  REGULATED
 RENT UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT;
   (2)  IF  AN  AUDIT UNDER THIS SUBDIVISION DETERMINES THAT AN OWNER HAS
 FAILED TO SUBMIT DOCUMENTATION SET FORTH IN PARAGRAPH A OF THIS SUBDIVI-
 SION AND THE OWNER THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION  AFTER
 SIXTY  DAYS' WRITTEN NOTICE FROM THE DIVISION, THE DIVISION MAY THEN SET
 THE SUBJECT UNIT'S LEGAL REGULATED RENT  BASED  UPON  AN  EVALUATION  OF
 DOCUMENTATION PROVIDED BUT IN NO EVENT SHALL THE LEGAL REGULATED RENT BE
 SET  AT  AN  AMOUNT  LESS THAN HUD FAIR MARKET VALUE FOR THE STATISTICAL
 METROPOLITAN AREA OR THE SMALL AREA FAIR MARKET RENT  AS  DETERMINED  BY
 THE  LOCAL  HOUSING  AUTHORITY  PROVIDED THAT APPLICABLE HOUSING QUALITY
 STANDARDS HAVE BEEN CONFIRMED BY INSPECTION AS SET FORTH ABOVE;
   (3) IF AN AUDIT UNDER  THIS  SUBDIVISION  DETERMINES  THAT  THE  OWNER
 SUBMITTED DOCUMENTATION SET FORTH IN PARAGRAPH A OF THIS SUBDIVISION BUT
 THAT  THE REGISTERED RENT EXCEEDS THE LEGAL REGULATED RENT OF A SUBSTAN-
 TIALLY SIMILAR HOUSING ACCOMMODATION IN THE SAME GEOGRAPHIC  AREA,  THEN
 THE  DIVISION  MAY  SET  THE  LEGAL REGULATED RENT AT THE GREATER OF THE
 LEGAL REGULATED RENT FOR A SUBSTANTIALLY SIMILAR  HOUSING  ACCOMMODATION
 IN THE SAME GEOGRAPHIC AREA OR THE HUD FAIR MARKET VALUE FOR THE STATIS-
 TICAL METROPOLITAN AREA OR THE SMALL AREA FAIR MARKET RENT AS DETERMINED
 S. 6352                             7
 
 BY  THE  LOCAL HOUSING AUTHORITY.  ANY REQUIRED REFUNDS SHALL BE MADE IN
 ACCORDANCE WITH SUBDIVISION D-1 OF SECTION NINE OF THIS CHAPTER; AND
   D.  ACCESS  TO  THE DOCUMENTATION SUBMITTED AS PART OF THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME  LAWS
 GOVERNING  ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH THE
 DIVISION.
   § 6. Section 9 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 d-1 to read as follows:
   D-1. (1) THE TENANT OF A HOUSING ACCOMMODATION THAT WAS VACANT ON,  OR
 BECAME  VACANT  AFTER,  JUNE 14, 2019, AND HAS BEEN SUBJECT TO THE LOCAL
 REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE WITH THE COMMISSIONER
 WITHIN 120 DAYS AFTER NOTICE HAS BEEN RECEIVED UNDER PARAGRAPH THREE  OF
 THIS  SUBDIVISION AN APPLICATION FOR THE ADJUSTMENT OF THE RENT FOR SUCH
 HOUSING ACCOMMODATION.   SUCH  APPLICATIONS  SHALL  BE  SUBJECT  TO  THE
 FOLLOWING:
   (I)  IN  THE  APPLICATION, THE TENANT MUST ALLEGE THAT THE LOCAL REGU-
 LATED HOUSING  RESTORATION  ADJUSTMENT  RENT  EXCEEDS  THE  RENT  FOR  A
 SUBSTANTIALLY SIMILAR UNIT WITHIN THE SAME GEOGRAPHIC AREA;
   (II) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER  OF HOUSING AND COMMUNITY RENEWAL SHALL ONLY CONSIDER LEGAL
 REGULATED RENTS FOR SUBSTANTIALLY  SIMILAR  REGULATED  HOUSING  ACCOMMO-
 DATIONS WITHIN A ONE-MILE RADIUS OF THE SUBJECT UNIT IN THE SAME BOROUGH
 OR  APPLICABLE  MUNICIPAL  SUBDIVISION.    SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATIONS ARE THOSE RENT-STABILIZED UNITS WITH SIMILAR ROOM  COUNTS
 AND  SQUARE  FOOTAGE, SIMILAR LEVELS OF CODE COMPLIANCE, INCLUDING STATE
 LAWS, LOCAL  LAWS  AND  CODES  FOR  HEALTH,  SAFETY,  AND  ENVIRONMENTAL
 SUSTAINABILITY,  SIMILAR REGULATORY STATUS, SIMILAR APARTMENT CONDITIONS
 AND QUALITY OF FIXTURES AND FINISHES, SIMILAR UNIT  AND  BUILDING  AMEN-
 ITIES,  SIMILAR  QUALITY AND CONDITION OF THE BUILDING AND COMMON AREAS,
 AND WITH VACANCY OR RENEWAL LEASES STARTING WITHIN  TWELVE  MONTHS  FROM
 THE  START DATE OF THE COMPLAINING TENANT'S VACANCY LEASE.  FOR PURPOSES
 OF CONSIDERING LEGAL REGULATED RENTS OF SIMILAR HOUSING  ACCOMMODATIONS,
 THE  GEOGRAPHIC  AREA  MAY BE EXPANDED BY INCREMENTS OF ONE-QUARTER MILE
 RADII AS MANY TIMES AS NECESSARY TO FIND A SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATION LOCATED IN THE SAME BOROUGH OR APPLICABLE MUNICIPAL SUBDI-
 VISION.   NOTWITHSTANDING THE FOREGOING,  ANY  LOCAL  REGULATED  HOUSING
 RESTORATION  ADJUSTMENT  RENT  AMOUNT  THAT DOES NOT EXCEED THE HUD FAIR
 MARKET VALUE FOR THE STATISTICAL METROPOLITAN AREA  OR  THE  SMALL  AREA
 FAIR  MARKET  RENT AS DETERMINED BY THE LOCAL HOUSING AUTHORITY SHALL BE
 PRESUMED TO BE FAIR;
   (III) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER THIS SECTION SHALL BE GIVEN AN  OPPORTUNITY  TO  SUBMIT  PROOF  OF
 LEGAL  REGULATED  RENTS  FOR  UP  TO THREE SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATIONS, IN ADDITION TO ANY ALREADY  SUBMITTED  AS  PART  OF  THE
 NOTIFICATION PROCEDURE UNDER PARAGRAPH THREE OF THIS SUBDIVISION; AND
   (IV)  WHEN  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT RENT
 AMOUNT IS DETERMINED TO EXCEED THE LEGAL REGULATED RENT FOR  A  SUBSTAN-
 TIALLY  SIMILAR  HOUSING  ACCOMMODATION  AS DEFINED BY THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ORDER THAT THE LEGAL
 REGULATED RENT FOR THE SUBJECT UNIT SHALL BE THE GREATER  OF  THE  LEGAL
 REGULATED  RENT FOR A SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION IN THE
 SAME GEOGRAPHIC AREA OR THE HUD FAIR MARKET VALUE  FOR  THE  STATISTICAL
 METROPOLITAN  AREA  OR  THE SMALL AREA FAIR MARKET RENT AS DETERMINED BY
 THE LOCAL HOUSING AUTHORITY.  ANY REQUIRED REFUNDS SHALL BE MADE BY  THE
 S. 6352                             8
 
 OWNER  IN  CASH  OR AS A CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT TO
 EXCEED OF SIX MONTHS.
   (2) NOTWITHSTANDING PARAGRAPH A OF THIS SUBDIVISION, PROVIDED THAT THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION (A-1) OF SECTION TEN OF THIS  CHAPTER,  THE  DIVISION  SHALL
 ONLY  DETERMINE  WHETHER  THE RENT CHARGED TO THE FIRST TENANT AFTER THE
 LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT IS SUPPORTED BY A  COMPA-
 RABLE  LEGAL  REGULATED RENT FOR A SUBSTANTIALLY SIMILAR REGULATED UNIT.
 ANY DOCUMENTATION DEFICIENCIES SHALL BE RESOLVED THROUGH THE AUDIT PROC-
 ESS SET FORTH IN SUBDIVISION (A-1) OF SECTION TEN OF THIS CHAPTER.
   (3) IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION  ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING  BY  CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE TENANT HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF  HOUS-
 ING  AND  COMMUNITY RENEWAL THAT THE LOCAL REGULATED HOUSING RESTORATION
 ADJUSTMENT WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL  REGU-
 LATED  RENT,  A  DESCRIPTION OF WORK COMPLETED, THE BUILDING ADDRESS AND
 LEGAL REGULATED RENT AMOUNTS FOR AT LEAST ONE AND UP TO  THREE  SUBSTAN-
 TIALLY SIMILAR UNITS, AND SUCH TENANT'S RIGHT TO FILE AN APPLICATION FOR
 ADJUSTMENT  OF  THE  NEW  LEGAL  REGULATED RENT OF SUCH HOUSING ACCOMMO-
 DATION.
   § 7. This act shall take effect immediately;  and  provided  that  the
 amendments  to  chapter  4 of title 26 of the administrative code of the
 city of New York made by sections one, two and 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.

co-Sponsors

View additional co-sponsors

2023-S6352A - Details

See Assembly Version of this Bill:: A6772
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, add §§26-511.2 & 26-513.1, NYC Ad Cd; amd §§6, 10 & 9, Emerg Ten Prot Act of 1974
Versions Introduced in 2025-2026 Legislative Session:: S6904, A7757

2023-S6352A - Summary

Provides that when a housing accommodation has been vacated after continuous tenancy or occupancy of ten years or more prior to vacancy, and the owner can demonstrate restoration of the unit, the new legal regulated rent shall be the rent agreed to by the owner and first tenant after such restoration and reserved in a lease or other rental agreement; makes related provisions.

2023-S6352A - Sponsor Memo

                                 
BILL NUMBER: S6352A

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to certain housing accommodations; and to amend chapter 576 of
the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, in relation to certain hardship provisions

 
PURPOSE OR GENERAL IDEA OF BILL:

To preserve, and restore to the rental market, rent-stabilized dwelling
units vacated after extended occupancies by setting forth a procedure in
law that will require documentary submissions demonstrating subject
units to be lead-free under applicable local definitions and to have
undergone code-compliant modernization with tenant protection plans in
place. Further, to set forth a process and requirements for setting
legal regulated rents for qualifying units, commensurate with legal
regulated rents of substantially similar units in the same geographic
areas.

SUMMARY OF PROVISIONS:

Adds a new paragraph 15 to subdivision c of Section 26-511 of the New
York City Administrative Code, and a new paragraph 6 to subdivision d of
Section 6 of the Emergency Tenant Protection Act, both authorizing the
adjustment of the legal regulated rents of housing accommodations having
undergone documented restoration when vacated after continuous tenancies
or occupancies of ten years or more.

Adds a new section 26-511.2 of the New York City Administrative Code,
and a new subdivision (a-1) to Section 15 of the Emergency Tenant
Protection Act, which both set forth the documentation submission
requirements for restored units to qualify for legal regulated rent
adjustment, certain limitations such as the correction of all
violations, penalties for tenant harassment, prohibition for buildings
in enforcement programs, and the requirements for an audit process by
the Division of Housing & Community Renewal.

Adds a new section 26-513.1 of.the New York City Administrative Code,
and a new subdivision (d-1) to Section 9 of the Emergency Tenant
Protection Act, which both set forth requirements for tenant applica-
tions for adjustment of legal regulated rents including provisions to
incentivize the housing of voucher applicants established under this act
and criteria for assessment of such applications and legal regulated
rents established under this act.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

Amended to add additional tenant protections including an affidavit or
other evidence of no harassment, requirements for units to be recovered
through legal court process, prohibition of buildings in the NYC Housing
Preservation & Development Alternative Enforcement Program.

Amended to add incentives for property owners to rent apartments to
housing subsidy voucher holders.

 
JUSTIFICATION:
With regulated housing options scarce for middle- and low-income fami-
lies, this bill would create a process that would allow for restoration
to the regulated rental market units vacated after long-term tenancies.
These units must be brought into compliance with applicable local defi-
nitions for lead-free housing accommodations and have otherwise under-
gone modernization in accordance with applicable code and construction.

This bill further requires that property owners submit to the Division
of Housing and Community Renewal certain documentation establishing
entitlement to adjust the legal regulated rent of qualifying restored
units and to allow for confirmation that any legal regulated rent estab-
lished under this act does not exceed the legal regulated rent of a
substantially similar unit in the same geographic area. This bill
includes incentives for property owners to rent renovated apartments to
housing subsidy voucher holders.

This bill provides robust tenant protections to prevent harassment of
current long-term occupants of rent-regulated housing.  This bill will
provide incentives to improve rent-regulated housing stock while restor-
ing units to the rental market and promoting the health, safety, and
welfare of current and new tenants.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately

2023-S6352A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6352--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 17, 2023
                                ___________
 
 Introduced  by  Sens.  COMRIE,  FERNANDEZ,  SEPULVEDA, ADDABBO, MANNION,
   MARTINEZ, PARKER, PERSAUD, SCARCELLA-SPANTON, SKOUFIS, THOMAS --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee  on  Housing,  Construction  and  Community  Development  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  certain housing accommodations; and to amend chapter 576
   of the laws of 1974, constituting the emergency tenant protection  act
   of nineteen seventy-four, in relation to certain hardship provisions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision c of section 26-511 of the administrative  code
 of  the city of New York is amended by adding a new paragraph 15 to read
 as follows:
   (15) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS  CHAP-
 TER  TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT TO THIS CHAP-
 TER HAS BEEN VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN  YEARS
 OR  MORE  PRIOR TO VACANCY, AND THE OWNER HAS SUBMITTED DOCUMENTATION TO
 THE DIVISION DEMONSTRATING RESTORATION OF  THE  UNIT  AS  SET  FORTH  IN
 SECTION  26-511.2 OF THIS CHAPTER, THE NEW LEGAL REGULATED RENT SHALL BE
 THE RENT AGREED TO BY THE OWNER AND FIRST TENANT AFTER SUCH  RESTORATION
 AND  RESERVED  IN  A LEASE OR OTHER RENTAL AGREEMENT; PROVIDED THAT SUCH
 NEW LEGAL REGULATED RENT MAY BE ADJUSTED ON AUDIT BY THE DIVISION  UNDER
 SECTION  26-511.2  OF  THIS CHAPTER, OR ON APPLICATION OF A TENANT UNDER
 SECTION 26-513.1 OF THIS CHAPTER. THE LEGAL  REGULATED  RENT  ADJUSTMENT
 SET  FORTH IN THIS PARAGRAPH SHALL BE KNOWN AS THE LOCAL REGULATED HOUS-
 ING RESTORATION ADJUSTMENT.
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 26-511.2 to read as follows:
   § 26-511.2 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  A. THE
 DIVISION  OF  HOUSING AND COMMUNITY RENEWAL, THE "DIVISION" SHALL ESTAB-
 LISH A NOTIFICATION PROCEDURE AND  DOCUMENTATION  SUBMISSION  GUIDELINES
 FOR  THE  LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  DOCUMENTATION

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10320-09-3
 S. 6352--A                          2
 
 TO QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT  SHALL
 BE LIMITED TO:
   (1)  XRF  TEST RESULTS DEMONSTRATING A LEAD-FREE HOUSING ACCOMMODATION
 UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION  PLANS  OR  SIMILAR  SUBMISSION  IN
 CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7)  EVIDENCE  OF  RENTING TO A HOUSING SUBSIDY VOUCHER HOLDER, OR THE
 LEGAL REGULATED RENT AMOUNT OR AMOUNTS FOR SUBSTANTIALLY SIMILAR UNIT OR
 UNITS AS DEFINED BY SECTION 26-513.1 OF THIS CHAPTER;
   (8) EVIDENCE OF RENTING  TO  A  HOUSING  SUBSIDY  VOUCHER  HOLDER,  OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SECTION, A FORM
 TO  BE  PROMULGATED  BY  THE  DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION ADJUSTMENT WAS VOLUNTARY AND  NOT  THE  RESULT  OF  UNLAWFUL  OWNER
 HARASSMENT.  IN  CONSIDERING THE SUFFICIENCY OF ALTERNATE DOCUMENTATION,
 AND NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION,  VACATUR
 SHALL  BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC  COMMUNICATIONS,  RECORDINGS,  OR OTHER EVIDENCE OF VOLUNTARY
 VACATUR, OR (III) THE OWNER DEMONSTRATES THE PREVIOUS  TENANT  DIED  AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B.  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT SHALL NOT BE
 PERMITTED:
   (1) FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD  AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2)  FOR  UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH PERIOD AFTER
 DETERMINATION BY THE DIVISION THAT THE OWNER  HAS  ENGAGED  IN  UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT; OR
   (3)  FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND DEVEL-
 OPMENT'S ALTERNATE ENFORCEMENT PROGRAM.
   C. THE DIVISION SHALL ESTABLISH AN AUDIT PROCESS TO REVIEW A  PERCENT-
 AGE,  AS  ESTABLISHED  BY  THE  DIVISION, OF HOUSING ACCOMMODATIONS THAT
 REGISTER ADJUSTED LEGAL REGULATED RENTS UNDER THE LOCAL REGULATED  HOUS-
 ING  RESTORATION  ADJUSTMENT.   THE DIVISION'S ESTABLISHED AUDIT PROCESS
 SHALL BE SUBJECT TO THE FOLLOWING REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET FORTH IN SUBDIVISION A OF THIS  SECTION  HAS  BEEN  SUBMITTED;  (II)
 VISUAL  INSPECTION  OF  THE  SUBJECT  UNIT; AND (III) UNLESS RENTED TO A
 HOUSING SUBSIDY VOUCHER HOLDER, REVIEW OF THE UNIT'S REGISTERED RENT  IN
 COMPARISON TO THE LEGAL REGULATED RENTS OF SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATIONS  IN THE SAME GEOGRAPHIC AREA CONSIDERING THE SAME FACTORS
 SET FORTH IN SECTION 26-513.1 OF THIS  CHAPTER,  INCLUDING  THE  OWNER'S
 RIGHT TO SUBMIT THE LEGAL REGULATED RENT OF A SUBSTANTIALLY SIMILAR UNIT
 OR UNITS. SUCH AUDIT SHALL BE INITIATED WITHIN ONE YEAR OF THE FILING OF
 AN  ANNUAL  APARTMENT REGISTRATION INDICATING AN ADJUSTMENT TO THE LEGAL
 REGULATED RENT UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT;
 AND
 S. 6352--A                          3
 
   (2) IF AN AUDIT UNDER THIS SUBDIVISION DETERMINES THAT  AN  OWNER  HAS
 FAILED  TO  SUBMIT  DOCUMENTATION  SET  FORTH  IN  SUBDIVISION A OF THIS
 SECTION AND THE OWNER THEN FAILS TO  SUBMIT  ANY  MISSING  DOCUMENTATION
 AFTER SIXTY DAYS' WRITTEN NOTICE FROM THE DIVISION, OR IF AN AUDIT UNDER
 THIS  SUBDIVISION  DETERMINES  THE  LOCAL HOUSING RESTORATION ADJUSTMENT
 EXCEEDS THE LEGAL RENT FOR ALL SUBSTANTIALLY  SIMILAR  HOUSING  ACCOMMO-
 DATIONS  AS  DEFINED  BY  THIS  SECTION, THE DIVISION SHALL THEN SET THE
 SUBJECT UNIT'S LEGAL REGULATED RENT AT AN  AMOUNT  EQUAL  TO  THE  LEGAL
 REGULATED  RENT  FOR A SUBSTANTIALLY SIMILAR UNIT IN THE SAME GEOGRAPHIC
 AREA, PROVIDED, HOWEVER,  THAT  THE  LEGAL  REGULATED  RENTS  FOR  UNITS
 SUBJECT TO HOUSING SUBSIDY VOUCHERS SHALL BE ESTABLISHED AT THE CONTRACT
 RENT AMOUNT APPROVED BY THE AGENCY ADMINISTERING THE VOUCHER.
   (3)  ANY  REQUIRED  REFUNDS  SHALL  BE MADE IN ACCORDANCE WITH SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS  OR
 THAT  ARE  IN  COMMUNITIES  OF NEED, THE DIVISION SHALL ESTABLISH INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING PROVIDERS WHO RENT TO HOUSING SUBSIDY  VOUCHER  HOLDERS  LOCATED  IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E.  ACCESS  TO  THE DOCUMENTATION SUBMITTED AS PART OF THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME  LAWS
 GOVERNING  ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH THE
 DIVISION.
   § 3. The administrative code of the city of New  York  is  amended  by
 adding a new section 26-513.1 to read as follows:
   §  26-513.1  APPLICATION  FOR  ADJUSTMENT  OF  LOCAL REGULATED HOUSING
 RESTORATION ADJUSTMENT. A. THE TENANT OF A  HOUSING  ACCOMMODATION  THAT
 WAS  VACANT  ON,  OR  BECAME  VACANT  AFTER, JUNE 14, 2019, AND HAS BEEN
 SUBJECT TO THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT, MAY  FILE
 WITH  THE  COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL WITHIN 120 DAYS
 AFTER NOTICE HAS BEEN RECEIVED UNDER SUBDIVISION C OF  THIS  SECTION  AN
 APPLICATION  FOR  THE  ADJUSTMENT  OF THE RENT FOR SUCH HOUSING ACCOMMO-
 DATION. SUCH APPLICATIONS SHALL BE SUBJECT TO THE FOLLOWING:
   (1) IN THE APPLICATION, THE TENANT MUST ALLEGE THAT  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE RENT FOR SUBSTAN-
 TIALLY SIMILAR UNITS WITHIN THE SAME GEOGRAPHIC AREA.
   (2) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION,  THE
 COMMISSIONER SHALL ONLY CONSIDER LEGAL REGULATED RENTS FOR SUBSTANTIALLY
 SIMILAR  HOUSING  ACCOMMODATIONS WITHIN A ONE-MILE RADIUS OF THE SUBJECT
 UNIT IN THE SAME BOROUGH OR APPLICABLE MUNICIPAL SUBDIVISION.   SUBSTAN-
 TIALLY  SIMILAR  HOUSING  ACCOMMODATIONS ARE THOSE RENT-STABILIZED UNITS
 WITH SIMILAR ROOM COUNTS AND SQUARE  FOOTAGE,  SIMILAR  LEVELS  OF  CODE
 COMPLIANCE, INCLUDING STATE LAWS, LOCAL LAWS AND CODES FOR HEALTH, SAFE-
 TY, AND ENVIRONMENTAL SUSTAINABILITY, SIMILAR REGULATORY STATUS, SIMILAR
 APARTMENT  CONDITIONS AND QUALITY OF FIXTURES AND FINISHES, SIMILAR UNIT
 AND BUILDING AMENITIES, SIMILAR QUALITY AND CONDITION  OF  THE  BUILDING
 AND  COMMON  AREAS,  AND  WITH VACANCY OR RENEWAL LEASES STARTING WITHIN
 TWELVE MONTHS FROM THE START DATE OF THE  COMPLAINING  TENANT'S  VACANCY
 LEASE.    FOR  PURPOSES  OF CONSIDERING LEGAL REGULATED RENTS OF SIMILAR
 HOUSING ACCOMMODATIONS, THE GEOGRAPHIC AREA MAY BE  EXPANDED  BY  INCRE-
 MENTS  OF  ONE-QUARTER  MILE  RADII AS MANY TIMES AS NECESSARY TO FIND A
 SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION LOCATED IN THE SAME  BOROUGH
 OR APPLICABLE MUNICIPAL SUBDIVISION.  NOTWITHSTANDING THE FOREGOING, ANY
 LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT RENT AMOUNT FOR UNITS
 SUBJECT TO HOUSING SUBSIDY VOUCHERS THAT DOES NOT  EXCEED  THE  CONTRACT
 S. 6352--A                          4
 
 RENT  AMOUNTS  APPROVED  BY  THE  LOCAL HOUSING AGENCY ADMINISTERING THE
 VOUCHER SHALL BE DETERMINED TO BE FAIR.
   (3)  THE  OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER THIS SECTION SHALL BE GIVEN AN  OPPORTUNITY  TO  SUBMIT  PROOF  OF
 LEGAL  REGULATED  RENTS  FOR  UP  TO THREE SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATIONS, IN ADDITION TO ANY ALREADY  SUBMITTED  AS  PART  OF  THE
 NOTIFICATION PROCEDURE UNDER SECTION 26-511.2 OF THIS CHAPTER.
   (4)  WHEN  THE  LOCAL  REGULATED  HOUSING  RESTORATION ADJUSTMENT RENT
 AMOUNT IS DETERMINED TO EXCEED THE LEGAL REGULATED RENT FOR  A  SUBSTAN-
 TIALLY  SIMILAR  HOUSING  ACCOMMODATION  AS DEFINED BY THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ORDER THAT THE LEGAL
 REGULATED RENT FOR THE SUBJECT UNIT SHALL BE EQUAL TO  THE  LEGAL  REGU-
 LATED RENT FOR A SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION IN THE SAME
 GEOGRAPHIC  AREA;  PROVIDED, HOWEVER, THAT THE LEGAL REGULATED RENTS FOR
 UNITS SUBJECT TO HOUSING SUBSIDY VOUCHERS SHALL BE EQUAL TO THE CONTRACT
 RENT AMOUNT APPROVED BY THE LOCAL  HOUSING  AUTHORITY  THAT  ISSUES  THE
 VOUCHER. ANY REQUIRED REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR AS A
 CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   B.  NOTWITHSTANDING  SUBDIVISION  A OF THIS SECTION, PROVIDED THAT THE
 OWNER HAS SUBMITTED TO THE DIVISION  DOCUMENTATION  IN  ACCORDANCE  WITH
 SUBDIVISION  A  OF  SECTION 26-511.2 OF THIS CHAPTER, THE DIVISION SHALL
 ONLY DETERMINE WHETHER THE TENANCY  IS  SUBJECT  TO  A  HOUSING  SUBSIDY
 VOUCHER  AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT AFTER
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT IS SUPPORTED  BY  THE
 RENT  FOR  A SUBSTANTIALLY SIMILAR UNIT.  ANY DOCUMENTATION DEFICIENCIES
 SHALL BE RESOLVED  THROUGH  THE  AUDIT  PROCESS  SET  FORTH  IN  SECTION
 26-511.2 OF THIS CHAPTER.
   C.  IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION  ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING  BY  CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE TENANT HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF  HOUS-
 ING  AND  COMMUNITY RENEWAL THAT THE LOCAL REGULATED HOUSING RESTORATION
 ADJUSTMENT WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL  REGU-
 LATED  RENT,  A  DESCRIPTION OF WORK COMPLETED, THE BUILDING ADDRESS AND
 LEGAL REGULATED RENT AMOUNTS FOR AT LEAST ONE AND UP TO  THREE  SUBSTAN-
 TIALLY  SIMILAR  UNITS,  AND  SUCH TENANT'S RIGHT TO FILE AN APPLICATION
 CHALLENGING THE NEW LEGAL REGULATED RENT OF SUCH HOUSING ACCOMMODATION.
   § 4. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
 576 of the laws of 1974, constituting the  emergency  tenant  protection
 act  of  nineteen seventy-four, as amended by chapter 102 of the laws of
 1984, is amended and a new paragraph 6 is added to read as follows:
   (5) as an alternative to the hardship application provided under para-
 graph four of this subdivision, owners of buildings acquired by the same
 owner or a related entity owned by the same principals three years prior
 to the date of application may apply to the division  for  increases  in
 excess  of the level of applicable guideline increases established under
 this law based on a finding by  the  commissioner  that  such  guideline
 increases  are  not sufficient to enable the owner to maintain an annual
 gross rent income for such building which exceeds the  annual  operating
 expenses  of  such  building  by a sum equal to at least five percent of
 such gross rent. For the purposes of this paragraph, operating  expenses
 shall  consist  of  the actual, reasonable, costs of fuel, labor, utili-
 ties, taxes, other than  income  or  corporate  franchise  taxes,  fees,
 permits,  necessary  contracted services and non-capital repairs, insur-
 S. 6352--A                          5
 
 ance, parts and supplies, management fees and other administrative costs
 and mortgage interest. For the  purposes  of  this  paragraph,  mortgage
 interest  shall  be  deemed  to  mean  interest  on a bona fide mortgage
 including  an allocable portion of charges related thereto.  Criteria to
 be considered in determining a bona fide mortgage other than an institu-
 tional mortgage shall include; condition of the  property,  location  of
 the  property,  the existing mortgage market at the time the mortgage is
 placed, the term of the mortgage, the amortization rate,  the  principal
 amount  of  the mortgage, security and other terms and conditions of the
 mortgage. The commissioner shall set a rental value for any  unit  occu-
 pied  by the owner or a person related to the owner or unoccupied at the
 owner's choice for more than one month at the last regulated  rent  plus
 the minimum number of guidelines increases or, if no such regulated rent
 existed  or  is  known,  the commissioner shall impute a rent consistent
 with other rents in the building. The amount of hardship increase  shall
 be  such  as may be required to maintain the annual gross rent income as
 provided by this paragraph. The division  shall  not  grant  a  hardship
 application  under  this paragraph or paragraph four of this subdivision
 for a period of three years subsequent to granting a  hardship  applica-
 tion  under  the  provisions  of  this  paragraph. The collection of any
 increase in the rent for any  housing  accommodation  pursuant  to  this
 paragraph  shall  not  exceed six percent in any year from the effective
 date of the order granting the increase over the rent set forth  in  the
 schedule  of gross rents, with collectability of any dollar excess above
 said sum to be spread forward in similar increments  and  added  to  the
 rent  as  established  or  set  in future years. No application shall be
 approved unless the owner's equity in such building exceeds five percent
 of: (i) the arms length purchase price of the property; (ii) the cost of
 any capital improvements  for  which  the  owner  has  not  collected  a
 surcharge; (iii) any repayment of principal of any mortgage or loan used
 to  finance the purchase of the property or any capital improvements for
 which the owner has not collected a surcharge; and (iv) any increase  in
 the  equalized  assessed value of the property which occurred subsequent
 to the first valuation of the property after purchase by the owner.  For
 the purposes of this paragraph, owner's equity shall mean the sum of (i)
 the purchase price of the property less the principal of any mortgage or
 loan  used to finance the purchase of the property, (ii) the cost of any
 capital improvement for which the owner has not  collected  a  surcharge
 less the principal of any mortgage or loan used to finance said improve-
 ment,  (iii) any repayment of the principal of any mortgage or loan used
 to finance the purchase of the property or any capital  improvement  for
 which  the owner has not collected a surcharge, and (iv) any increase in
 the equalized assessed value of the property which  occurred  subsequent
 to  the  first valuation of the property after purchase by the owner[.];
 OR
   (6) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER
 TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT  TO  THIS  CHAPTER
 HAS  BEEN  VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN YEARS OR
 MORE PRIOR TO VACANCY, AND THE OWNER HAS SUBMITTED DOCUMENTATION TO  THE
 DIVISION  DEMONSTRATING RESTORATION OF THE UNIT AS SET FORTH IN SUBDIVI-
 SION (A-1) OF SECTION TEN OF THIS CHAPTER, THE NEW LEGAL REGULATED  RENT
 SHALL  BE  THE  RENT  AGREED TO BY THE OWNER AND FIRST TENANT AFTER SUCH
 RESTORATION AND RESERVED IN A LEASE OR OTHER RENTAL AGREEMENT;  PROVIDED
 THAT SUCH NEW LEGAL REGULATED RENT MAY BE ADJUSTED ON AUDIT BY THE DIVI-
 SION  UNDER  SUBDIVISION  (A-1)  OF  SECTION  TEN OF THIS SECTION, OR ON
 APPLICATION OF A TENANT UNDER SUBDIVISION D-1 OF SECTION  NINE  OF  THIS
 S. 6352--A                          6
 
 CHAPTER. THE LEGAL REGULATED RENT ADJUSTMENT SET FORTH IN THIS PARAGRAPH
 SHALL BE KNOWN AS THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.
   §  5.  Section  10  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 (a-1) to read as follows:
   (A-1)  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH A
 NOTIFICATION PROCEDURE AND DOCUMENTATION SUBMISSION GUIDELINES  FOR  THE
 LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT.  A. DOCUMENTATION TO
 QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT SHALL  BE
 LIMITED TO:
   (1)  XRF  TEST RESULTS DEMONSTRATING A LEAD-FREE HOUSING ACCOMMODATION
 UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION  PLANS  OR  SIMILAR  SUBMISSION  IN
 CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7)  EVIDENCE  OF  RENTING TO A HOUSING SUBSIDY VOUCHER HOLDER, OR THE
 LEGAL REGULATED RENT AMOUNT OR AMOUNTS FOR SUBSTANTIALLY SIMILAR UNIT OR
 UNITS AS DEFINED BY SECTION 26-513.1 OF THE ADMINISTRATIVE CODE  OF  THE
 CITY OF NEW YORK;
   (8)  EVIDENCE  OF  RENTING  TO  A  HOUSING  SUBSIDY VOUCHER HOLDER, OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION,  A
 FORM TO BE PROMULGATED BY THE DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION  ADJUSTMENT  WAS  VOLUNTARY  AND  NOT  THE RESULT OF UNLAWFUL OWNER
 HARASSMENT. IN CONSIDERING THE SUFFICIENCY OF  ALTERNATE  DOCUMENTATION,
 AND  NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION, VACATUR
 SHALL BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT  WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC COMMUNICATIONS, RECORDINGS, OR OTHER  EVIDENCE  OF  VOLUNTARY
 VACATUR,  OR  (III)  THE OWNER DEMONSTRATES THE PREVIOUS TENANT DIED AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B. THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT  SHALL  NOT  BE
 PERMITTED:
   (1)  FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2) FOR UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH  PERIOD  AFTER
 DETERMINATION  BY  THE  DIVISION  THAT THE OWNER HAS ENGAGED IN UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT; OR
   (3) FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND  DEVEL-
 OPMENT'S ALTERNATE ENFORCEMENT PROGRAM.
   C.  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH AN
 AUDIT PROCESS TO REVIEW A PERCENTAGE, AS ESTABLISHED BY THE DIVISION, OF
 HOUSING ACCOMMODATIONS THAT  REGISTER  ADJUSTED  LEGAL  REGULATED  RENTS
 UNDER  THE  LOCAL  REGULATED HOUSING RESTORATION ADJUSTMENT.   THE DIVI-
 SION'S ESTABLISHED AUDIT PROCESS  SHALL  BE  SUBJECT  TO  THE  FOLLOWING
 REQUIREMENTS:
   (1)  ANY  AUDIT SHALL BE LIMITED SUBDIVISION TO: (I) CONFIRMATION THAT
 DOCUMENTATION SET FORTH IN PARAGRAPH A  OF  THIS  SUBDIVISION  HAS  BEEN
 SUBMITTED,  (II) VISUAL INSPECTION OF THE SUBJECT UNIT, AND (III) REVIEW
 S. 6352--A                          7
 
 OF THE UNIT'S REGISTERED RENT IN COMPARISON TO THE LEGAL REGULATED RENTS
 OF SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATIONS IN THE  SAME  GEOGRAPHIC
 AREA  CONSIDERING  THE  SAME  FACTORS  SET  FORTH  IN SUBDIVISION D-1 OF
 SECTION  NINE OF THIS CHAPTER, INCLUDING THE OWNER'S RIGHT TO SUBMIT THE
 LEGAL REGULATED RENT OF A SUBSTANTIALLY  SIMILAR  UNIT  OR  UNITS.  SUCH
 AUDIT  SHALL  BE  INITIATED  WITHIN  ONE YEAR OF THE FILING OF AN ANNUAL
 APARTMENT REGISTRATION INDICATING AN ADJUSTMENT TO THE  LEGAL  REGULATED
 RENT UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT; AND
   (2)  IF  AN  AUDIT UNDER THIS SUBDIVISION DETERMINES THAT AN OWNER HAS
 FAILED TO SUBMIT DOCUMENTATION  SET  FORTH  IN  SUBDIVISION  A  OF  THIS
 SECTION  AND  THE  OWNER  THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION
 AFTER SIXTY DAYS' WRITTEN NOTICE FROM THE DIVISION, OR IF AN AUDIT UNDER
 THIS SUBDIVISION DETERMINES THE  LOCAL  HOUSING  RESTORATION  ADJUSTMENT
 EXCEEDS  THE  LEGAL  RENT FOR ALL SUBSTANTIALLY SIMILAR HOUSING ACCOMMO-
 DATIONS AS DEFINED BY THIS SECTION, THE  DIVISION  SHALL  THEN  SET  THE
 SUBJECT  UNIT'S  LEGAL  REGULATED  RENT  AT AN AMOUNT EQUAL TO THE LEGAL
 REGULATED RENT FOR A SUBSTANTIALLY SIMILAR UNIT IN THE  SAME  GEOGRAPHIC
 AREA,  PROVIDED,  HOWEVER,  THAT  THE  LEGAL  REGULATED  RENTS FOR UNITS
 SUBJECT TO HOUSING SUBSIDY VOUCHERS SHALL BE ESTABLISHED AT THE CONTRACT
 RENT AMOUNT APPROVED BY THE AGENCY ADMINISTERING THE VOUCHER.
   (3) ANY REQUIRED REFUNDS SHALL BE  MADE  IN  ACCORDANCE  WITH  SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT  TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS OR
 THAT ARE IN COMMUNITIES OF NEED, THE  DIVISION  SHALL  ESTABLISH  INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING  PROVIDERS  WHO  RENT  TO HOUSING SUBSIDY VOUCHER HOLDERS LOCATED IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E. ACCESS TO THE DOCUMENTATION SUBMITTED AS PART OF  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME LAWS
 GOVERNING ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH  THE
 DIVISION.
   §  6.  Section  9  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 d-1 to read as follows:
   D-1.  (1) THE TENANT OF A HOUSING ACCOMMODATION THAT WAS VACANT ON, OR
 BECAME VACANT AFTER, JUNE 14, 2019, AND HAS BEEN SUBJECT  TO  THE  LOCAL
 REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE WITH THE COMMISSIONER
 WITHIN  120 DAYS AFTER NOTICE HAS BEEN RECEIVED UNDER PARAGRAPH THREE OF
 THIS SUBDIVISION AN APPLICATION FOR THE ADJUSTMENT OF THE RENT FOR  SUCH
 HOUSING  ACCOMMODATION.    SUCH  APPLICATIONS  SHALL  BE  SUBJECT TO THE
 FOLLOWING:
   (I) IN THE APPLICATION, THE TENANT MUST ALLEGE THAT  THE  LOCAL  REGU-
 LATED  HOUSING  RESTORATION  ADJUSTMENT  RENT  EXCEEDS  THE  RENT  FOR A
 SUBSTANTIALLY SIMILAR UNIT WITHIN THE SAME GEOGRAPHIC AREA;
   (II) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ONLY CONSIDER  LEGAL
 REGULATED  RENTS  FOR  SUBSTANTIALLY  SIMILAR REGULATED HOUSING ACCOMMO-
 DATIONS WITHIN A ONE-MILE RADIUS OF THE SUBJECT UNIT IN THE SAME BOROUGH
 OR APPLICABLE MUNICIPAL  SUBDIVISION.    SUBSTANTIALLY  SIMILAR  HOUSING
 ACCOMMODATIONS  ARE THOSE RENT-STABILIZED UNITS WITH SIMILAR ROOM COUNTS
 AND SQUARE FOOTAGE, SIMILAR LEVELS OF CODE COMPLIANCE,  INCLUDING  STATE
 LAWS,  LOCAL  LAWS  AND  CODES  FOR  HEALTH,  SAFETY,  AND ENVIRONMENTAL
 SUSTAINABILITY, SIMILAR REGULATORY STATUS, SIMILAR APARTMENT  CONDITIONS
 AND  QUALITY  OF  FIXTURES AND FINISHES, SIMILAR UNIT AND BUILDING AMEN-
 ITIES, SIMILAR QUALITY AND CONDITION OF THE BUILDING AND  COMMON  AREAS,
 S. 6352--A                          8
 
 AND  WITH  VACANCY  OR RENEWAL LEASES STARTING WITHIN TWELVE MONTHS FROM
 THE START DATE OF THE COMPLAINING TENANT'S VACANCY LEASE.  FOR  PURPOSES
 OF  CONSIDERING LEGAL REGULATED RENTS OF SIMILAR HOUSING ACCOMMODATIONS,
 THE  GEOGRAPHIC  AREA  MAY BE EXPANDED BY INCREMENTS OF ONE-QUARTER MILE
 RADII AS MANY TIMES AS NECESSARY TO FIND A SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATION LOCATED IN THE SAME BOROUGH OR APPLICABLE MUNICIPAL SUBDI-
 VISION.   NOTWITHSTANDING THE FOREGOING,  ANY  LOCAL  REGULATED  HOUSING
 RESTORATION  ADJUSTMENT RENT AMOUNT FOR UNITS SUBJECT TO HOUSING SUBSIDY
 VOUCHERS THAT DOES NOT EXCEED THE CONTRACT RENT AMOUNTS APPROVED BY  THE
 LOCAL HOUSING AGENCY ADMINISTERING THE VOUCHER SHALL BE DETERMINED TO BE
 FAIR;
   (III) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER  THIS  SECTION  SHALL  BE  GIVEN AN OPPORTUNITY TO SUBMIT PROOF OF
 LEGAL REGULATED RENTS FOR UP  TO  THREE  SUBSTANTIALLY  SIMILAR  HOUSING
 ACCOMMODATIONS,  IN  ADDITION  TO  ANY  ALREADY SUBMITTED AS PART OF THE
 NOTIFICATION PROCEDURE UNDER PARAGRAPH THREE OF THIS SUBDIVISION; AND
   (IV) WHEN THE LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT  RENT
 AMOUNT  IS  DETERMINED TO EXCEED THE LEGAL REGULATED RENT FOR A SUBSTAN-
 TIALLY SIMILAR HOUSING ACCOMMODATION AS DEFINED  BY  THIS  SECTION,  THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ORDER THAT THE LEGAL
 REGULATED  RENT  FOR  THE SUBJECT UNIT SHALL BE EQUAL TO THE LEGAL REGU-
 LATED RENT FOR A SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION IN THE SAME
 GEOGRAPHIC AREA; PROVIDED, HOWEVER, THAT THE LEGAL REGULATED  RENTS  FOR
 UNITS SUBJECT TO HOUSING SUBSIDY VOUCHERS SHALL BE EQUAL TO THE CONTRACT
 RENT  AMOUNTS  APPROVED  BY  THE  LOCAL HOUSING AGENCY ADMINISTERING THE
 VOUCHER.  ANY REQUIRED REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR  AS
 A CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   (2) NOTWITHSTANDING PARAGRAPH A OF THIS SUBDIVISION, PROVIDED THAT THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION (A-1) OF SECTION TEN OF THIS  CHAPTER,  THE  DIVISION  SHALL
 ONLY  DETERMINE  WHETHER  THE  TENANCY  IS  SUBJECT TO A HOUSING SUBSIDY
 VOUCHER AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT  AFTER
 THE  LOCAL  REGULATED  HOUSING  RESTORATION ADJUSTMENT IS SUPPORTED BY A
 COMPARABLE LEGAL REGULATED RENT FOR A  SUBSTANTIALLY  SIMILAR  REGULATED
 UNIT. ANY DOCUMENTATION DEFICIENCIES SHALL BE RESOLVED THROUGH THE AUDIT
 PROCESS SET FORTH IN SUBDIVISION (A-1) OF SECTION TEN OF THIS CHAPTER.
   (3) IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT  WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING BY CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE  TENANT  HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING  ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL THAT THE LOCAL REGULATED  HOUSING  RESTORATION
 ADJUSTMENT  WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL REGU-
 LATED RENT, A DESCRIPTION OF WORK COMPLETED, THE  BUILDING  ADDRESS  AND
 LEGAL  REGULATED  RENT AMOUNTS FOR AT LEAST ONE AND UP TO THREE SUBSTAN-
 TIALLY SIMILAR UNITS, AND SUCH TENANT'S RIGHT TO FILE AN APPLICATION FOR
 ADJUSTMENT OF THE NEW LEGAL REGULATED  RENT  OF  SUCH  HOUSING  ACCOMMO-
 DATION.
   §  7.  This  act  shall take effect immediately; and provided that the
 amendments to chapter 4 of title 26 of the administrative  code  of  the
 city  of  New York made by sections one, two and 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.

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2023-S6352B - Details

See Assembly Version of this Bill:: A6772
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, add §§26-511.2 & 26-513.1, NYC Ad Cd; amd §§6, 10 & 9, Emerg Ten Prot Act of 1974
Versions Introduced in 2025-2026 Legislative Session:: S6904, A7757

2023-S6352B - Summary

Provides that when a housing accommodation has been vacated after continuous tenancy or occupancy of ten years or more prior to vacancy, and the owner can demonstrate restoration of the unit, the new legal regulated rent shall be the rent agreed to by the owner and first tenant after such restoration and reserved in a lease or other rental agreement; makes related provisions.

2023-S6352B - Sponsor Memo

                                 
BILL NUMBER: S6352B

SPONSOR: COMRIE
 
PURPOSE OR GENERAL IDEA OF BILL:

To preserve, and restore to the rental market, rent-stabilized dwelling
units vacated after extended occupancies by setting forth a procedure in
law that will require documentary submissions demonstrating subject
units to be lead-free under applicable local definitions and to have
undergone code-compliant modernization with tenant protection plans in
place. Further, to set forth a process and requirements for setting
legal regulated rents for qualifying units, commensurate with Section 8
Housing Choice Voucher rents in the same geographic areas.

 
SUMMARY OF PROVISIONS:

Adds a new paragraph 15 to subdivision c of Section 26-511 of the New
York City Administrative Code, and a new paragraph 6 to subdivision d of
Section 6 of the Emergency Tenant Protection Act, both authorizing the
adjustment of the legal regulated rents of housing accommodations having
undergone documented restoration when vacated after continuous tenancies
or occupancies of ten years or more.

Adds a new section 26-511.2 of the New York City Administrative Code,
and a new subdivision (a-1) to Section 15 of the Emergency Tenant
Protection Act, which both set forth the documentation submission
requirements for restored units to qualify for legal regulated rent
adjustment, certain limitations such as the correction of all
violations, penalties for tenant harassment, prohibition for buildings
in enforcement programs, and the requirements for an audit process by
the Division of Housing & Community Renewal.

Adds a new section 26-513.1 of the New York City Administrative Code,
and a new subdivision (d-1) to Section 9 of the Emergency Tenant
Protection Act, which both set forth requirements for applications for
adjustment of legal regulated rents including provisions to incentivize
the housing of voucher applicants established under this act and crite-
ria for assessment of such applications and legal regulated rents estab-
lished under this act.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

Amended to add additional tenant protections including an affidavit or
other evidence of no harassment, requirements for units to be recovered
through legal court process, prohibition of buildings in the NYC Housing
Preservation & Development Alternative Enforcement Program, and
protections against unlawful evictions.

Amended to add incentives for property owners to rent apartments to
housing subsidy voucher holders, and to ensure rent levels are not
greater than Section 8 payment standards so that voucher holders can
occupy renovated units.

 
JUSTIFICATION:

Currently, there are thousands of apartments across New York that are
uninhabitable due to the failure of property owners to keep dwellings up
to code. Such upgrades for owners are cost prohibitive and have left
apartments vacated for some time. New York is in a housing crisis. With
unit scarcity and high demand for apartments, we need solutions to bring
those apartments back into a state of good repair and in conformity with
housing regulations.

With regulated housing options scarce for middle- and low-income fami-
lies, this bill would create a process that would allow for restoration
to the regulated rental market units vacated after long-term tenancies.
These units must be brought into compliance with applicable local defi-
nitions for lead-free housing accommodations and have otherwise under-
gone modernization in accordance with applicable code and construction.

This bill further requires that property owners submit to the Division
of Housing and Community Renewal certain documentation establishing
entitlement to adjust the legal regulated rent of qualifying restored
units and to allow for confirmation that any legal regulated rent estab-
lished under this act does not exceed the Section 8 Voucher Payment
Standard adopted by the local agency for the same geographic area. This
bill includes incentives for property owners to rent renovated apart-
ments to housing subsidy voucher holders and ensures rent levels are
within Section 8 voucher rent limits.

This bill provides robust tenant protections to prevent harassment and
unlawful eviction of current long-term occupants of rent-regulated hous-
ing. This bill will provide incentives to improve rent-regulated housing
stock while restoring units to the rental market and promoting the
health, safety, and welfare of current and new tenants.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments to
chapter 4 of title 26 of the administrative code of the city of New York
made by sections one, two and 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.

2023-S6352B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6352--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 17, 2023
                                ___________
 
 Introduced  by  Sens.  COMRIE,  FERNANDEZ,  SEPULVEDA, ADDABBO, MANNION,
   MARTINEZ, PARKER, PERSAUD, SCARCELLA-SPANTON, SKOUFIS, THOMAS --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee  on  Housing,  Construction  and  Community  Development  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- recommitted to the Committee on Hous-
   ing, Construction and Community Development in accordance with  Senate
   Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation to certain housing accommodations; and to amend the emergency
   tenant protection act of nineteen seventy-four, in relation to certain
   hardship provisions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision c of section 26-511 of the administrative  code
 of  the city of New York is amended by adding a new paragraph 16 to read
 as follows:
   (16) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS  CHAP-
 TER  TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT TO THIS CHAP-
 TER HAS BEEN VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN  YEARS
 OR  MORE  PRIOR TO VACANCY, AND THE OWNER HAS SUBMITTED DOCUMENTATION TO
 THE DIVISION DEMONSTRATING RESTORATION OF  THE  UNIT  AS  SET  FORTH  IN
 SECTION  26-511.2 OF THIS CHAPTER, THE NEW LEGAL REGULATED RENT SHALL BE
 THE RENT AGREED TO BY THE OWNER AND FIRST TENANT AFTER SUCH  RESTORATION
 AND  RESERVED  IN  A LEASE OR OTHER RENTAL AGREEMENT; PROVIDED THAT SUCH
 NEW LEGAL REGULATED RENT MAY BE ADJUSTED ON AUDIT BY THE DIVISION  UNDER
 SECTION  26-511.2  OF  THIS CHAPTER, OR ON APPLICATION OF A TENANT UNDER
 SECTION 26-513.1 OF THIS CHAPTER. THE LEGAL  REGULATED  RENT  ADJUSTMENT
 SET  FORTH IN THIS PARAGRAPH SHALL BE KNOWN AS THE LOCAL REGULATED HOUS-
 ING RESTORATION ADJUSTMENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10320-13-4

 S. 6352--B                          2
 
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 26-511.2 to read as follows:
   § 26-511.2 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  A. THE
 DIVISION  OF  HOUSING AND COMMUNITY RENEWAL, THE "DIVISION" SHALL ESTAB-
 LISH A NOTIFICATION PROCEDURE AND  DOCUMENTATION  SUBMISSION  GUIDELINES
 FOR  THE  LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  DOCUMENTATION
 TO QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT  SHALL
 BE LIMITED TO:
   (1)  XRF  TEST RESULTS DEMONSTRATING A LEAD-FREE HOUSING ACCOMMODATION
 UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION  PLANS  OR  SIMILAR  SUBMISSION  IN
 CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7)  EVIDENCE  OF  RENTING TO A HOUSING SUBSIDY VOUCHER HOLDER, OR THE
 LEGAL REGULATED RENT AMOUNT OR AMOUNTS FOR SUBSTANTIALLY SIMILAR UNIT OR
 UNITS AS DEFINED BY SECTION 26-513.1 OF THIS CHAPTER;
   (8) EVIDENCE OF RENTING  TO  A  HOUSING  SUBSIDY  VOUCHER  HOLDER,  OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SECTION, A FORM
 TO  BE  PROMULGATED  BY  THE  DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION ADJUSTMENT WAS VOLUNTARY AND  NOT  THE  RESULT  OF  UNLAWFUL  OWNER
 HARASSMENT.  IN  CONSIDERING THE SUFFICIENCY OF ALTERNATE DOCUMENTATION,
 AND NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION,  VACATUR
 SHALL  BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC  COMMUNICATIONS,  RECORDINGS,  OR OTHER EVIDENCE OF VOLUNTARY
 VACATUR, OR (III) THE OWNER DEMONSTRATES THE PREVIOUS  TENANT  DIED  AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B.  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT SHALL NOT BE
 PERMITTED:
   (1) FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD  AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2)  FOR  UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH PERIOD AFTER
 DETERMINATION BY THE DIVISION THAT THE OWNER  HAS  ENGAGED  IN  UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT; OR
   (3)  FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND DEVEL-
 OPMENT'S ALTERNATE ENFORCEMENT PROGRAM.
   C. THE DIVISION SHALL ESTABLISH AN AUDIT PROCESS TO REVIEW A  PERCENT-
 AGE,  AS  ESTABLISHED  BY  THE  DIVISION, OF HOUSING ACCOMMODATIONS THAT
 REGISTER ADJUSTED LEGAL REGULATED RENTS UNDER THE LOCAL REGULATED  HOUS-
 ING  RESTORATION  ADJUSTMENT.   THE DIVISION'S ESTABLISHED AUDIT PROCESS
 SHALL BE SUBJECT TO THE FOLLOWING REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET FORTH IN SUBDIVISION A OF THIS  SECTION  HAS  BEEN  SUBMITTED;  (II)
 VISUAL  INSPECTION  OF  THE  SUBJECT  UNIT; AND (III) UNLESS RENTED TO A
 HOUSING SUBSIDY VOUCHER HOLDER, REVIEW OF THE UNIT'S REGISTERED RENT  IN
 COMPARISON TO THE LEGAL REGULATED RENTS OF SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATIONS  IN THE SAME GEOGRAPHIC AREA CONSIDERING THE SAME FACTORS
 SET FORTH IN SECTION 26-513.1 OF THIS  CHAPTER,  INCLUDING  THE  OWNER'S
 S. 6352--B                          3
 
 RIGHT TO SUBMIT THE LEGAL REGULATED RENT OF A SUBSTANTIALLY SIMILAR UNIT
 OR UNITS. SUCH AUDIT SHALL BE INITIATED WITHIN ONE YEAR OF THE FILING OF
 AN  ANNUAL  APARTMENT REGISTRATION INDICATING AN ADJUSTMENT TO THE LEGAL
 REGULATED RENT UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT;
 AND
   (2)  IF  AN  AUDIT UNDER THIS SUBDIVISION DETERMINES THAT AN OWNER HAS
 FAILED TO SUBMIT DOCUMENTATION  SET  FORTH  IN  SUBDIVISION  A  OF  THIS
 SECTION  AND  THE  OWNER  THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION
 AFTER SIXTY DAYS' WRITTEN NOTICE FROM THE DIVISION, OR IF AN AUDIT UNDER
 THIS SUBDIVISION DETERMINES THE  LOCAL  HOUSING  RESTORATION  ADJUSTMENT
 EXCEEDS  THE  LEGAL  RENT FOR ALL SUBSTANTIALLY SIMILAR HOUSING ACCOMMO-
 DATIONS AS DEFINED BY THIS SECTION, THE  DIVISION  SHALL  THEN  SET  THE
 SUBJECT  UNIT'S  LEGAL  REGULATED  RENT  AT AN AMOUNT EQUAL TO THE LEGAL
 REGULATED RENT FOR A SUBSTANTIALLY SIMILAR UNIT IN THE  SAME  GEOGRAPHIC
 AREA,  PROVIDED,  HOWEVER,  THAT  THE  LEGAL  REGULATED  RENTS FOR UNITS
 SUBJECT TO HOUSING SUBSIDY VOUCHERS SHALL BE ESTABLISHED AT THE CONTRACT
 RENT AMOUNT APPROVED BY THE AGENCY ADMINISTERING THE VOUCHER.
   (3) ANY REQUIRED REFUNDS SHALL BE  MADE  IN  ACCORDANCE  WITH  SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT  TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS OR
 THAT ARE IN COMMUNITIES OF NEED, THE  DIVISION  SHALL  ESTABLISH  INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING  PROVIDERS  WHO  RENT  TO HOUSING SUBSIDY VOUCHER HOLDERS LOCATED IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E. ACCESS TO THE DOCUMENTATION SUBMITTED AS PART OF  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME LAWS
 GOVERNING ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH  THE
 DIVISION.
   §  3.  The  administrative  code of the city of New York is amended by
 adding a new section 26-513.1 to read as follows:
   § 26-513.1 APPLICATION  FOR  ADJUSTMENT  OF  LOCAL  REGULATED  HOUSING
 RESTORATION  ADJUSTMENT.  A.  THE TENANT OF A HOUSING ACCOMMODATION THAT
 WAS VACANT ON, OR BECAME VACANT AFTER,  JUNE  FOURTEENTH,  TWO  THOUSAND
 NINETEEN,  AND  HAS BEEN SUBJECT TO THE LOCAL REGULATED HOUSING RESTORA-
 TION ADJUSTMENT, MAY FILE WITH THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL WITHIN ONE HUNDRED TWENTY DAYS AFTER NOTICE  HAS  BEEN  RECEIVED
 UNDER SUBDIVISION C OF THIS SECTION AN APPLICATION FOR THE ADJUSTMENT OF
 THE  RENT  FOR  SUCH  HOUSING  ACCOMMODATION. SUCH APPLICATIONS SHALL BE
 SUBJECT TO THE FOLLOWING:
   (1) IN THE APPLICATION, THE TENANT MUST ALLEGE THAT  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE RENT FOR SUBSTAN-
 TIALLY SIMILAR UNITS WITHIN THE SAME GEOGRAPHIC AREA.
   (2) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION,  THE
 COMMISSIONER SHALL ONLY CONSIDER LEGAL REGULATED RENTS FOR SUBSTANTIALLY
 SIMILAR  HOUSING  ACCOMMODATIONS WITHIN A ONE-MILE RADIUS OF THE SUBJECT
 UNIT IN THE SAME BOROUGH OR APPLICABLE MUNICIPAL SUBDIVISION.   SUBSTAN-
 TIALLY  SIMILAR  HOUSING  ACCOMMODATIONS ARE THOSE RENT-STABILIZED UNITS
 WITH SIMILAR ROOM COUNTS AND SQUARE  FOOTAGE,  SIMILAR  LEVELS  OF  CODE
 COMPLIANCE, INCLUDING STATE LAWS, LOCAL LAWS AND CODES FOR HEALTH, SAFE-
 TY, AND ENVIRONMENTAL SUSTAINABILITY, SIMILAR REGULATORY STATUS, SIMILAR
 APARTMENT  CONDITIONS AND QUALITY OF FIXTURES AND FINISHES, SIMILAR UNIT
 AND BUILDING AMENITIES, SIMILAR QUALITY AND CONDITION  OF  THE  BUILDING
 AND  COMMON  AREAS,  AND  WITH VACANCY OR RENEWAL LEASES STARTING WITHIN
 TWELVE MONTHS FROM THE START DATE OF THE  COMPLAINING  TENANT'S  VACANCY
 LEASE.    FOR  PURPOSES  OF CONSIDERING LEGAL REGULATED RENTS OF SIMILAR
 S. 6352--B                          4
 
 HOUSING ACCOMMODATIONS, THE GEOGRAPHIC AREA MAY BE  EXPANDED  BY  INCRE-
 MENTS  OF  ONE-QUARTER  MILE  RADII AS MANY TIMES AS NECESSARY TO FIND A
 SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION LOCATED IN THE SAME  BOROUGH
 OR APPLICABLE MUNICIPAL SUBDIVISION.  NOTWITHSTANDING THE FOREGOING, ANY
 LOCAL  REGULATED HOUSING RESTORATION ADJUSTMENT RENT AMOUNT FOR UNITS IN
 BUILDINGS WITH TENANCIES SUBJECT TO HOUSING SUBSIDY VOUCHERS  THAT  DOES
 NOT EXCEED THE CONTRACT RENT AMOUNTS APPROVED BY THE LOCAL HOUSING AGEN-
 CY ADMINISTERING THE VOUCHER SHALL BE DETERMINED TO BE FAIR.
   (3)  THE  OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER THIS SECTION SHALL BE GIVEN AN  OPPORTUNITY  TO  SUBMIT  PROOF  OF
 LEGAL  REGULATED  RENTS  FOR  UP  TO THREE SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATIONS, IN ADDITION TO ANY ALREADY  SUBMITTED  AS  PART  OF  THE
 NOTIFICATION PROCEDURE UNDER SECTION 26-511.2 OF THIS CHAPTER.
   (4)  WHEN  THE  LOCAL  REGULATED  HOUSING  RESTORATION ADJUSTMENT RENT
 AMOUNT IS DETERMINED TO EXCEED THE LEGAL REGULATED RENT FOR  A  SUBSTAN-
 TIALLY  SIMILAR  HOUSING  ACCOMMODATION  AS DEFINED BY THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ORDER THAT THE LEGAL
 REGULATED RENT FOR THE SUBJECT UNIT SHALL BE EQUAL TO  THE  LEGAL  REGU-
 LATED RENT FOR A SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION IN THE SAME
 GEOGRAPHIC  AREA,  PROVIDED, HOWEVER, THAT THE LEGAL REGULATED RENTS FOR
 UNITS IN BUILDINGS WITH TENANCIES SUBJECT TO  HOUSING  SUBSIDY  VOUCHERS
 SHALL BE EQUAL TO THE CONTRACT RENT AMOUNT APPROVED BY THE LOCAL HOUSING
 AUTHORITY THAT ISSUES THE VOUCHER. ANY REQUIRED REFUNDS SHALL BE MADE BY
 THE  OWNER  IN CASH OR AS A CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT
 TO EXCEED SIX MONTHS.
   B. NOTWITHSTANDING SUBDIVISION A OF THIS SECTION,  PROVIDED  THAT  THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION A OF SECTION 26-511.2 OF THIS CHAPTER,  THE  DIVISION  SHALL
 ONLY  DETERMINE  WHETHER  THE  TENANCY  IS  SUBJECT TO A HOUSING SUBSIDY
 VOUCHER AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT  AFTER
 THE  LOCAL  REGULATED HOUSING RESTORATION ADJUSTMENT IS SUPPORTED BY THE
 RENT FOR A SUBSTANTIALLY SIMILAR UNIT.   ANY DOCUMENTATION  DEFICIENCIES
 SHALL  BE  RESOLVED  THROUGH  THE  AUDIT  PROCESS  SET  FORTH IN SECTION
 26-511.2 OF THIS CHAPTER.
   C. IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE  LEGAL
 RENT  WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING BY CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE  TENANT  HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING  ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL THAT THE LOCAL REGULATED  HOUSING  RESTORATION
 ADJUSTMENT  WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL REGU-
 LATED RENT, A DESCRIPTION OF WORK COMPLETED, THE  BUILDING  ADDRESS  AND
 LEGAL  REGULATED  RENT AMOUNTS FOR AT LEAST ONE AND UP TO THREE SUBSTAN-
 TIALLY SIMILAR UNITS, AND SUCH TENANT'S RIGHT  TO  FILE  AN  APPLICATION
 CHALLENGING THE NEW LEGAL REGULATED RENT OF SUCH HOUSING ACCOMMODATION.
   § 4. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
 576  of  the  laws of 1974, constituting the emergency tenant protection
 act of nineteen seventy-four, as amended by chapter 102 of the  laws  of
 1984, is amended and a new paragraph 6 is added to read as follows:
   (5) as an alternative to the hardship application provided under para-
 graph four of this subdivision, owners of buildings acquired by the same
 owner or a related entity owned by the same principals three years prior
 to  the  date  of application may apply to the division for increases in
 excess of the level of applicable guideline increases established  under
 this  law  based  on  a  finding by the commissioner that such guideline
 S. 6352--B                          5
 
 increases are not sufficient to enable the owner to maintain  an  annual
 gross  rent  income for such building which exceeds the annual operating
 expenses of such building by a sum equal to at  least  five  percent  of
 such  gross rent. For the purposes of this paragraph, operating expenses
 shall consist of the actual, reasonable, costs of  fuel,  labor,  utili-
 ties,  taxes,  other  than  income  or  corporate franchise taxes, fees,
 permits, necessary contracted services and non-capital  repairs,  insur-
 ance, parts and supplies, management fees and other administrative costs
 and  mortgage  interest.  For  the  purposes of this paragraph, mortgage
 interest shall be deemed to  mean  interest  on  a  bona  fide  mortgage
 including  an allocable portion of charges related thereto.  Criteria to
 be considered in determining a bona fide mortgage other than an institu-
 tional mortgage shall include; condition of the  property,  location  of
 the  property,  the existing mortgage market at the time the mortgage is
 placed, the term of the mortgage, the amortization rate,  the  principal
 amount  of  the mortgage, security and other terms and conditions of the
 mortgage. The commissioner shall set a rental value for any  unit  occu-
 pied  by the owner or a person related to the owner or unoccupied at the
 owner's choice for more than one month at the last regulated  rent  plus
 the minimum number of guidelines increases or, if no such regulated rent
 existed  or  is  known,  the commissioner shall impute a rent consistent
 with other rents in the building. The amount of hardship increase  shall
 be  such  as may be required to maintain the annual gross rent income as
 provided by this paragraph. The division  shall  not  grant  a  hardship
 application  under  this paragraph or paragraph four of this subdivision
 for a period of three years subsequent to granting a  hardship  applica-
 tion  under  the  provisions  of  this  paragraph. The collection of any
 increase in the rent for any  housing  accommodation  pursuant  to  this
 paragraph  shall  not  exceed six percent in any year from the effective
 date of the order granting the increase over the rent set forth  in  the
 schedule  of gross rents, with collectability of any dollar excess above
 said sum to be spread forward in similar increments  and  added  to  the
 rent  as  established  or  set  in future years. No application shall be
 approved unless the owner's equity in such building exceeds five percent
 of: (i) the arms length purchase price of the property; (ii) the cost of
 any capital improvements  for  which  the  owner  has  not  collected  a
 surcharge; (iii) any repayment of principal of any mortgage or loan used
 to  finance the purchase of the property or any capital improvements for
 which the owner has not collected a surcharge; and (iv) any increase  in
 the  equalized  assessed value of the property which occurred subsequent
 to the first valuation of the property after purchase by the owner.  For
 the purposes of this paragraph, owner's equity shall mean the sum of (i)
 the purchase price of the property less the principal of any mortgage or
 loan  used to finance the purchase of the property, (ii) the cost of any
 capital improvement for which the owner has not  collected  a  surcharge
 less the principal of any mortgage or loan used to finance said improve-
 ment,  (iii) any repayment of the principal of any mortgage or loan used
 to finance the purchase of the property or any capital  improvement  for
 which  the owner has not collected a surcharge, and (iv) any increase in
 the equalized assessed value of the property which  occurred  subsequent
 to  the  first valuation of the property after purchase by the owner[.];
 OR
   (6) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT  TO
 THE  CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT TO THIS ACT HAS BEEN
 VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN YEARS OR MORE PRIOR
 TO VACANCY, AND THE OWNER HAS SUBMITTED DOCUMENTATION  TO  THE  DIVISION
 S. 6352--B                          6
 
 DEMONSTRATING RESTORATION OF THE UNIT AS SET FORTH IN SUBDIVISION A-1 OF
 SECTION  TEN OF THIS ACT, THE NEW LEGAL REGULATED RENT SHALL BE THE RENT
 AGREED TO BY THE OWNER AND  FIRST  TENANT  AFTER  SUCH  RESTORATION  AND
 RESERVED  IN  A  LEASE OR OTHER RENTAL AGREEMENT; PROVIDED THAT SUCH NEW
 LEGAL REGULATED RENT MAY BE ADJUSTED ON  AUDIT  BY  THE  DIVISION  UNDER
 SUBDIVISION  A-1  OF  SECTION  TEN  OF  THIS ACT, OR ON APPLICATION OF A
 TENANT UNDER SUBDIVISION D-1 OF SECTION NINE  OF  THIS  ACT.  THE  LEGAL
 REGULATED  RENT ADJUSTMENT SET FORTH IN THIS PARAGRAPH SHALL BE KNOWN AS
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.
   § 5. Section 10 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 a-1 to read as follows:
   A-1. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL  ESTABLISH  A
 NOTIFICATION  PROCEDURE  AND DOCUMENTATION SUBMISSION GUIDELINES FOR THE
 LOCAL REGULATED HOUSING  RESTORATION  ADJUSTMENT.  A.  DOCUMENTATION  TO
 QUALIFY  FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT SHALL BE
 LIMITED TO:
   (1) XRF TEST RESULTS DEMONSTRATING A LEAD-FREE  HOUSING  ACCOMMODATION
 UNDER APPLICABLE LOCAL DEFINITIONS;
   (2)  ANY  REQUIRED  TENANT  PROTECTION  PLANS OR SIMILAR SUBMISSION IN
 CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7) EVIDENCE OF RENTING TO A HOUSING SUBSIDY VOUCHER  HOLDER,  OR  THE
 LEGAL REGULATED RENT AMOUNT OR AMOUNTS FOR SUBSTANTIALLY SIMILAR UNIT OR
 UNITS  AS  DEFINED BY SECTION 26-513.1 OF THE ADMINISTRATIVE CODE OF THE
 CITY OF NEW YORK;
   (8) EVIDENCE OF RENTING  TO  A  HOUSING  SUBSIDY  VOUCHER  HOLDER,  OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9)  FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, A
 FORM TO BE PROMULGATED BY THE DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION ADJUSTMENT WAS VOLUNTARY AND  NOT  THE  RESULT  OF  UNLAWFUL  OWNER
 HARASSMENT.  IN  CONSIDERING THE SUFFICIENCY OF ALTERNATE DOCUMENTATION,
 AND NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION,  VACATUR
 SHALL  BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC  COMMUNICATIONS,  RECORDINGS,  OR OTHER EVIDENCE OF VOLUNTARY
 VACATUR, OR (III) THE OWNER DEMONSTRATES THE PREVIOUS  TENANT  DIED  AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B.  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT SHALL NOT BE
 PERMITTED:
   (1) FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD  AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2)  FOR  UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH PERIOD AFTER
 DETERMINATION BY THE DIVISION THAT THE OWNER  HAS  ENGAGED  IN  UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT; OR
   (3)  FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND DEVEL-
 OPMENT'S ALTERNATE ENFORCEMENT PROGRAM.
   C. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL  SHALL  ESTABLISH  AN
 AUDIT PROCESS TO REVIEW A PERCENTAGE, AS ESTABLISHED BY THE DIVISION, OF
 S. 6352--B                          7
 
 HOUSING  ACCOMMODATIONS  THAT  REGISTER  ADJUSTED  LEGAL REGULATED RENTS
 UNDER THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT.    THE  DIVI-
 SION'S  ESTABLISHED  AUDIT  PROCESS  SHALL  BE  SUBJECT TO THE FOLLOWING
 REQUIREMENTS:
   (1)  ANY  AUDIT SHALL BE LIMITED SUBDIVISION TO: (I) CONFIRMATION THAT
 DOCUMENTATION SET FORTH IN PARAGRAPH A  OF  THIS  SUBDIVISION  HAS  BEEN
 SUBMITTED,  (II) VISUAL INSPECTION OF THE SUBJECT UNIT, AND (III) UNLESS
 RENTED TO A HOUSING SUBSIDY VOUCHER HOLDER, REVIEW OF THE UNIT'S  REGIS-
 TERED  RENT  IN COMPARISON TO THE LEGAL REGULATED RENTS OF SUBSTANTIALLY
 SIMILAR HOUSING ACCOMMODATIONS IN THE SAME GEOGRAPHIC  AREA  CONSIDERING
 THE  SAME  FACTORS  SET FORTH IN SUBDIVISION D-1 OF SECTION NINE OF THIS
 ACT, INCLUDING THE OWNER'S RIGHT TO SUBMIT THE LEGAL REGULATED RENT OF A
 SUBSTANTIALLY SIMILAR UNIT OR UNITS. SUCH AUDIT SHALL BE INITIATED WITH-
 IN ONE YEAR OF THE FILING OF AN ANNUAL APARTMENT REGISTRATION INDICATING
 AN ADJUSTMENT TO THE LEGAL REGULATED  RENT  UNDER  THE  LOCAL  REGULATED
 HOUSING RESTORATION ADJUSTMENT; AND
   (2)  IF  AN  AUDIT UNDER THIS SUBDIVISION DETERMINES THAT AN OWNER HAS
 FAILED TO SUBMIT DOCUMENTATION SET FORTH IN PARAGRAPH A OF THIS SUBDIVI-
 SION AND THE OWNER THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION  AFTER
 SIXTY  DAYS' WRITTEN NOTICE FROM THE DIVISION, OR IF AN AUDIT UNDER THIS
 SUBDIVISION DETERMINES THE LOCAL HOUSING RESTORATION ADJUSTMENT  EXCEEDS
 THE  LEGAL  RENT FOR ALL SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATIONS AS
 DEFINED BY THIS SECTION, THE DIVISION SHALL THEN SET THE SUBJECT  UNIT'S
 LEGAL  REGULATED RENT AT AN AMOUNT EQUAL TO THE LEGAL REGULATED RENT FOR
 A SUBSTANTIALLY SIMILAR UNIT IN  THE  SAME  GEOGRAPHIC  AREA,  PROVIDED,
 HOWEVER,  THAT  THE  LEGAL  REGULATED RENTS FOR UNITS SUBJECT TO HOUSING
 SUBSIDY VOUCHERS SHALL  BE  ESTABLISHED  AT  THE  CONTRACT  RENT  AMOUNT
 APPROVED BY THE AGENCY ADMINISTERING THE VOUCHER.
   (3)  ANY  REQUIRED  REFUNDS  SHALL  BE MADE IN ACCORDANCE WITH SECTION
 26-513.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS  OR
 THAT  ARE  IN  COMMUNITIES  OF NEED, THE DIVISION SHALL ESTABLISH INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING PROVIDERS WHO RENT TO HOUSING SUBSIDY  VOUCHER  HOLDERS  LOCATED  IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E.  ACCESS  TO  THE DOCUMENTATION SUBMITTED AS PART OF THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME  LAWS
 GOVERNING  ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH THE
 DIVISION.
   § 6. Section 9 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 d-1 to read as follows:
   D-1. (1) THE TENANT OF A HOUSING ACCOMMODATION THAT WAS VACANT ON,  OR
 BECAME  VACANT  AFTER,  JUNE 14, 2019, AND HAS BEEN SUBJECT TO THE LOCAL
 REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE WITH THE COMMISSIONER
 WITHIN 120 DAYS AFTER NOTICE HAS BEEN RECEIVED UNDER PARAGRAPH 3 OF THIS
 SUBDIVISION AN APPLICATION FOR THE ADJUSTMENT OF THE RENT FOR SUCH HOUS-
 ING ACCOMMODATION.  SUCH APPLICATIONS SHALL BE SUBJECT TO THE FOLLOWING:
   (I) IN THE APPLICATION, THE TENANT MUST ALLEGE THAT  THE  LOCAL  REGU-
 LATED  HOUSING  RESTORATION  ADJUSTMENT  RENT  EXCEEDS  THE  RENT  FOR A
 SUBSTANTIALLY SIMILAR UNIT WITHIN THE SAME GEOGRAPHIC AREA;
   (II) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ONLY CONSIDER  LEGAL
 REGULATED  RENTS  FOR  SUBSTANTIALLY  SIMILAR REGULATED HOUSING ACCOMMO-
 DATIONS WITHIN A ONE-MILE RADIUS OF THE SUBJECT UNIT IN THE SAME BOROUGH
 S. 6352--B                          8
 
 OR APPLICABLE MUNICIPAL  SUBDIVISION.    SUBSTANTIALLY  SIMILAR  HOUSING
 ACCOMMODATIONS  ARE THOSE RENT-STABILIZED UNITS WITH SIMILAR ROOM COUNTS
 AND SQUARE FOOTAGE, SIMILAR LEVELS OF CODE COMPLIANCE,  INCLUDING  STATE
 LAWS,  LOCAL  LAWS  AND  CODES  FOR  HEALTH,  SAFETY,  AND ENVIRONMENTAL
 SUSTAINABILITY, SIMILAR REGULATORY STATUS, SIMILAR APARTMENT  CONDITIONS
 AND  QUALITY  OF  FIXTURES AND FINISHES, SIMILAR UNIT AND BUILDING AMEN-
 ITIES, SIMILAR QUALITY AND CONDITION OF THE BUILDING AND  COMMON  AREAS,
 AND  WITH  VACANCY  OR RENEWAL LEASES STARTING WITHIN TWELVE MONTHS FROM
 THE START DATE OF THE COMPLAINING TENANT'S VACANCY LEASE.  FOR  PURPOSES
 OF  CONSIDERING LEGAL REGULATED RENTS OF SIMILAR HOUSING ACCOMMODATIONS,
 THE GEOGRAPHIC AREA MAY BE EXPANDED BY INCREMENTS  OF  ONE-QUARTER  MILE
 RADII AS MANY TIMES AS NECESSARY TO FIND A SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATION LOCATED IN THE SAME BOROUGH OR APPLICABLE MUNICIPAL SUBDI-
 VISION.    NOTWITHSTANDING  THE  FOREGOING,  ANY LOCAL REGULATED HOUSING
 RESTORATION ADJUSTMENT RENT AMOUNT FOR UNITS IN BUILDINGS WITH TENANCIES
 SUBJECT TO HOUSING SUBSIDY VOUCHERS THAT DOES NOT  EXCEED  THE  CONTRACT
 RENT  AMOUNTS  APPROVED  BY  THE  LOCAL HOUSING AGENCY ADMINISTERING THE
 VOUCHER SHALL BE DETERMINED TO BE FAIR;
   (III) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER THIS SECTION SHALL BE GIVEN AN  OPPORTUNITY  TO  SUBMIT  PROOF  OF
 LEGAL  REGULATED  RENTS  FOR  UP  TO THREE SUBSTANTIALLY SIMILAR HOUSING
 ACCOMMODATIONS, IN ADDITION TO ANY ALREADY  SUBMITTED  AS  PART  OF  THE
 NOTIFICATION PROCEDURE UNDER PARAGRAPH 3 OF THIS SUBDIVISION; AND
   (IV)  WHEN  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT RENT
 AMOUNT IS DETERMINED TO EXCEED THE LEGAL REGULATED RENT FOR  A  SUBSTAN-
 TIALLY SIMILAR HOUSING ACCOMMODATION AS DEFINED BY THIS SUBDIVISION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ORDER THAT THE LEGAL
 REGULATED  RENT  FOR  THE SUBJECT UNIT SHALL BE EQUAL TO THE LEGAL REGU-
 LATED RENT FOR A SUBSTANTIALLY SIMILAR HOUSING ACCOMMODATION IN THE SAME
 GEOGRAPHIC AREA, PROVIDED, HOWEVER, THAT THE LEGAL REGULATED  RENTS  FOR
 UNITS  IN  BUILDINGS  WITH TENANCIES SUBJECT TO HOUSING SUBSIDY VOUCHERS
 SHALL BE EQUAL TO THE CONTRACT RENT AMOUNTS APPROVED BY THE LOCAL  HOUS-
 ING  AGENCY  ADMINISTERING  THE VOUCHER.   ANY REQUIRED REFUNDS SHALL BE
 MADE BY THE OWNER IN CASH OR AS A CREDIT  AGAINST  UNPAID  RENT  OVER  A
 PERIOD NOT TO EXCEED SIX MONTHS.
   (2) NOTWITHSTANDING PARAGRAPH 1 OF THIS SUBDIVISION, PROVIDED THAT THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION A-1 OF SECTION TEN OF THIS  ACT,  THE  DIVISION  SHALL  ONLY
 DETERMINE  WHETHER  THE  TENANCY IS SUBJECT TO A HOUSING SUBSIDY VOUCHER
 AND, IF NOT, WHETHER THE RENT CHARGED TO  THE  FIRST  TENANT  AFTER  THE
 LOCAL  REGULATED HOUSING RESTORATION ADJUSTMENT IS SUPPORTED BY A COMPA-
 RABLE LEGAL REGULATED RENT FOR A SUBSTANTIALLY SIMILAR  REGULATED  UNIT.
 ANY DOCUMENTATION DEFICIENCIES SHALL BE RESOLVED THROUGH THE AUDIT PROC-
 ESS SET FORTH IN SUBDIVISION A-1 OF SECTION TEN OF THIS ACT.
   (3) IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT  WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING BY CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE  TENANT  HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING  ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL THAT THE LOCAL REGULATED  HOUSING  RESTORATION
 ADJUSTMENT  WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL REGU-
 LATED RENT, A DESCRIPTION OF WORK COMPLETED, THE  BUILDING  ADDRESS  AND
 LEGAL  REGULATED  RENT AMOUNTS FOR AT LEAST ONE AND UP TO THREE SUBSTAN-
 TIALLY SIMILAR UNITS, AND SUCH TENANT'S RIGHT TO FILE AN APPLICATION FOR
 S. 6352--B                          9
 
 ADJUSTMENT OF THE NEW LEGAL REGULATED  RENT  OF  SUCH  HOUSING  ACCOMMO-
 DATION.
   §  7. This act shall take effect immediately; provided that the amend-
 ments to chapter 4 of title 26 of the administrative code of the city of
 New York made by sections one, two and 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.

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2023-S6352C (ACTIVE) - Details

See Assembly Version of this Bill:: A6772
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, add §§26-511.2 & 26-513.1, NYC Ad Cd; amd §§6, 10 & 9, Emerg Ten Prot Act of 1974
Versions Introduced in 2025-2026 Legislative Session:: S6904, A7757

2023-S6352C (ACTIVE) - Summary

Provides that when a housing accommodation has been vacated after continuous tenancy or occupancy of ten years or more prior to vacancy, and the owner can demonstrate restoration of the unit, the new legal regulated rent shall be the rent agreed to by the owner and first tenant after such restoration and reserved in a lease or other rental agreement; makes related provisions.

2023-S6352C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6352C

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to certain housing accommodations; and to amend the emergency
tenant protection act of nineteen seventy-four, in relation to certain
hardship provisions

 
PURPOSE OR GENERAL IDEA OF BILL:

To preserve, and restore to the rental market, rent-stabilized dwelling
units vacated after extended occupancies by setting forth a procedure in
law that will require documentary submissions demonstrating subject
units to be lead-free under applicable local definitions and to have
undergone code-compliant modernization with tenant protection plans in
place. Further, to set forth a process and requirements for setting
legal regulated rents for qualifying units, commensurate with Section 8
Housing Choice Voucher rents in the same geographic areas.

 
SUMMARY OF PROVISIONS:

Adds a new paragraph 15 to subdivision c of Section 26-511 of the New
York City Administrative Code, and a new paragraph 6 to subdivision d of
Section 6 of the Emergency Tenant Protection Act, both authorizing the
adjustment of the legal regulated rents of housing accommodations having
undergone documented restoration when vacated after continuous tenancies
or occupancies of ten years or more.

Adds a new section 26-511.2 of the New York City Administrative Code,
and a new subdivision (a-1) to Section 15 of the Emergency Tenant
Protection Act, which both set forth the documentation submission
requirements for restored units to qualify for legal regulated rent
adjustment, certain limitations such as the correction of all
violations, penalties for tenant harassment, prohibition for buildings
in enforcement programs, and the requirements for an audit process by
the Division of Housing & Community Renewal.

Adds a new section 26-513.1 of the New York City Administrative Code,
and a new subdivision (d-1) to Section 9 of the Emergency Tenant
Protection Act, which both set forth requirements for applications for
adjustment of legal regulated rents including provisions to incentivize
the housing of voucher applicants established under this act and crite-
ria for assessment of such applications and legal regulated rents estab-
lished under this act.

 
DIFFERENCE BETWEEN ORIGINAL AND ORIGINAL VERSION (IF APPLICABLE:

Amended to add additional tenant protections including an affidavit or
other evidence of no harassment, requirements for units to be recovered
through legal court process, prohibition of buildings in the NYC Housing
Preservation & Development Alternative Enforcement Program, and
protections against unlawful evictions.

Amended to add incentives for property owners to rent apartments to
housing subsidy voucher holders, and to ensure rent levels are not
greater than Section 8 payment standards so that voucher holders can
occupy renovated units.
 
JUSTIFICATION:

Currently, there are thousands of apartments across New York that are
uninhabitable due to the failure of property owners to keep dwellings up
to code. Such upgrades for owners are cost prohibitive and have left
apartments vacated for some time. New York is in a housing crisis. With
unit scarcity and high demand for apartments, we need solutions to bring
those apartments back into a state of good repair and in conformity with
housing regulations.

With regulated housing options scarce for middle- and low-income fami-
lies, this bill would create a process that would allow for restoration
to the regulated rental market units vacated after long-term tenancies.
These units must be brought into compliance with applicable local defi-
nitions for lead-free housing accommodations and have otherwise under-
gone modernization in accordance with applicable code and construction.

This bill further requires that property owners submit to the Division
of Housing and Community Renewal certain documentation establishing
entitlement to adjust the legal regulated rent of qualifying restored
units and to allow for confirmation that any legal regulated rent estab-
lished under this act does not exceed the Section 8 Voucher Payment
Standard adopted by the local agency for the same geographic area. This
bill includes incentives for property owners to rent renovated apart-
ments to housing subsidy voucher holders and ensures rent levels are
within Section 8 voucher rent limits.

This bill provides robust tenant protections to prevent harassment and
unlawful eviction of current long-term occupants of rent-regulated hous-
ing. This bill will provide incentives to improve rent-regulated housing
stock while restoring units to the rental market and promoting the
health, safety, and welfare of current and new tenants.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments to
chapter 4 of title 26 of the administrative code of the city of New York
made by sections one, two and 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.

2023-S6352C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6352--C
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 17, 2023
                                ___________
 
 Introduced  by  Sens.  COMRIE,  FERNANDEZ,  SEPULVEDA, ADDABBO, MANNION,
   MARTINEZ, PARKER, PERSAUD, SCARCELLA-SPANTON, SKOUFIS, THOMAS --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee  on  Housing,  Construction  and  Community  Development  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- recommitted to the Committee on Hous-
   ing, Construction and Community Development in accordance with  Senate
   Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said  committee  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to certain housing accommodations; and to amend the emergency
   tenant protection act of nineteen seventy-four, in relation to certain
   hardship provisions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision c of section 26-511 of the administrative code
 of the city of New York is amended by adding a new paragraph 16 to  read
 as follows:
   (16)  PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAP-
 TER TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT TO THIS  CHAP-
 TER  HAS BEEN VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN YEARS
 OR MORE PRIOR TO VACANCY, AND THE OWNER CAN DEMONSTRATE  RESTORATION  OF
 THE UNIT AS SET FORTH IN SECTION 26-511.2 OF THIS CHAPTER, THE NEW LEGAL
 REGULATED RENT SHALL BE THE RENT AGREED TO BY THE OWNER AND FIRST TENANT
 AFTER  SUCH  RESTORATION  AND RESERVED IN A LEASE OR OTHER RENTAL AGREE-
 MENT; PROVIDED THAT SUCH NEW LEGAL REGULATED RENT:  (I) SHALL NOT EXCEED
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT  WAS  IN EFFECT AT THE TIME THE LEASE WAS EXECUTED; AND (II) MAY BE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10320-17-4

 S. 6352--C                          2
 
 ADJUSTED ON AUDIT BY THE DIVISION UNDER SECTION 26-511.2 OF  THIS  CHAP-
 TER,  OR  ON  APPLICATION OF A TENANT OR OWNER UNDER SECTION 26-513.1 OF
 THIS CHAPTER. THE LEGAL REGULATED RENT  ADJUSTMENT  SET  FORTH  IN  THIS
 PARAGRAPH  SHALL  BE  KNOWN  AS  THE LOCAL REGULATED HOUSING RESTORATION
 ADJUSTMENT.
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 26-511.2 to read as follows:
   § 26-511.2 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  A. THE
 DIVISION  OF  HOUSING AND COMMUNITY RENEWAL, THE "DIVISION" SHALL ESTAB-
 LISH A NOTIFICATION PROCEDURE AND  DOCUMENTATION  SUBMISSION  GUIDELINES
 FOR  THE  LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  DOCUMENTATION
 TO QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT  SHALL
 BE LIMITED TO:
   (1)  XRF TEST RESULTS OR OTHER DOCUMENTATION DEMONSTRATING A LEAD-FREE
 HOUSING ACCOMMODATION UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION PLANS OR SIMILAR SUBMISSIONS TO THE
 LOCAL BUILDING DEPARTMENT IN CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES OR CERTIFICATIONS;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7) EVIDENCE OF RENTING TO A HOUSING SUBSIDY VOUCHER  HOLDER,  OR  THE
 SECTION  8  VOUCHER  PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED;
   (8)  EVIDENCE  OF  RENTING  TO  A  HOUSING  SUBSIDY VOUCHER HOLDER, OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SECTION, A FORM
 TO BE PROMULGATED BY THE DIVISION AND  SIGNED  BY  THE  PREVIOUS  TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION  ADJUSTMENT  WAS  VOLUNTARY  AND  NOT  THE RESULT OF UNLAWFUL OWNER
 HARASSMENT. IN CONSIDERING THE SUFFICIENCY OF  ALTERNATE  DOCUMENTATION,
 AND  NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION, VACATUR
 SHALL BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT  WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC COMMUNICATIONS, RECORDINGS, OR OTHER  EVIDENCE  OF  VOLUNTARY
 VACATUR,  OR  (III)  THE OWNER DEMONSTRATES THE PREVIOUS TENANT DIED AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B. THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT  SHALL  NOT  BE
 PERMITTED:
   (1)  FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2) FOR UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH  PERIOD  AFTER
 DETERMINATION  BY  THE  DIVISION  THAT THE OWNER HAS ENGAGED IN UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT;
   (3) FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND  DEVEL-
 OPMENT'S ALTERNATIVE ENFORCEMENT PROGRAM; OR
   (4) AFTER AN UNLAWFUL EVICTION.
   C.  THE DIVISION SHALL ESTABLISH AN AUDIT PROCESS TO REVIEW A PERCENT-
 AGE, AS ESTABLISHED BY THE  DIVISION,  OF  HOUSING  ACCOMMODATIONS  THAT
 REGISTER  ADJUSTED LEGAL REGULATED RENTS UNDER THE LOCAL REGULATED HOUS-
 ING RESTORATION ADJUSTMENT.   THE DIVISION'S ESTABLISHED  AUDIT  PROCESS
 SHALL BE SUBJECT TO THE FOLLOWING REQUIREMENTS:
 S. 6352--C                          3
 
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET  FORTH IN SUBDIVISION A OF THIS SECTION HAS BEEN SUBMITTED; AND (II)
 UNLESS RENTED TO A HOUSING SUBSIDY VOUCHER HOLDER, CONFIRMATION THAT THE
 UNIT'S AGREED RENT DOES NOT EXCEED THE SECTION 8 VOUCHER PAYMENT  STAND-
 ARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE
 AND  LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED.  SUCH AUDIT SHALL BE INITIATED WITHIN  ONE  YEAR  OF
 THE  FILING OF AN ANNUAL APARTMENT REGISTRATION INDICATING AN ADJUSTMENT
 TO THE LEGAL REGULATED RENT UNDER THE LOCAL REGULATED  HOUSING  RESTORA-
 TION ADJUSTMENT; AND
   (2)  IF  AN  AUDIT UNDER THIS SUBDIVISION DETERMINES THAT (I) AN OWNER
 HAS FAILED TO SUBMIT DOCUMENTATION SET FORTH IN SUBDIVISION  A  OF  THIS
 SECTION  AND  THE  OWNER  THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION
 AFTER SIXTY DAYS' WRITTEN NOTICE FROM THE DIVISION, OR  (II)  THE  LOCAL
 HOUSING  RESTORATION  ADJUSTMENT  EXCEEDS  THE SECTION 8 VOUCHER PAYMENT
 STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME
 SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME
 THE LEASE WAS EXECUTED, THE DIVISION SHALL SET THE SUBJECT UNIT'S  LEGAL
 REGULATED RENT AT AN AMOUNT EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION
 8  VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR
 A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT AT THE TIME THE LEASE WAS EXECUTED, EXCEPT THAT THE  LEGAL  REGU-
 LATED  RENTS  FOR  UNITS  SUBJECT  TO  HOUSING SUBSIDY VOUCHERS SHALL BE
 ESTABLISHED AT THE CONTRACT RENT AMOUNT APPROVED BY THE AGENCY  ADMINIS-
 TERING THE VOUCHER.
   (3)  ANY  REQUIRED  REFUNDS  SHALL  BE MADE IN ACCORDANCE WITH SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS  OR
 THAT  ARE  IN  COMMUNITIES  OF NEED, THE DIVISION SHALL ESTABLISH INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING PROVIDERS WHO RENT TO HOUSING SUBSIDY  VOUCHER  HOLDERS  LOCATED  IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E.  ACCESS  TO  THE DOCUMENTATION SUBMITTED AS PART OF THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME  LAWS
 GOVERNING  ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH THE
 DIVISION.
   § 3. The administrative code of the city of New  York  is  amended  by
 adding a new section 26-513.1 to read as follows:
   §  26-513.1  APPLICATION  FOR  ADJUSTMENT  OF  LOCAL REGULATED HOUSING
 RESTORATION ADJUSTMENT. A. THE TENANT OF A  HOUSING  ACCOMMODATION  THAT
 WAS  VACANT  ON,  OR  BECAME  VACANT  AFTER, JUNE 14, 2019, AND HAS BEEN
 SUBJECT TO THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT, MAY  FILE
 WITH  THE  COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL WITHIN 120 DAYS
 AFTER NOTICE HAS BEEN RECEIVED UNDER SUBDIVISION C OF  THIS  SECTION  AN
 APPLICATION  FOR  THE  ADJUSTMENT  OF THE RENT FOR SUCH HOUSING ACCOMMO-
 DATION. SUCH APPLICATIONS SHALL BE SUBJECT TO THE FOLLOWING:
   (1) IN THE APPLICATION, THE TENANT MUST ALLEGE THAT  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE SECTION 8 VOUCHER
 PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT  OF
 THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT
 THE TIME THE LEASE WAS EXECUTED.
   (2)  IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER SHALL ONLY CONSIDER WHETHER THE SUBJECT  RENT  EXCEEDS  THE
 SECTION  8  VOUCHER  PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 S. 6352--C                          4
 
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED.
   (3)  THE  OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER THIS SECTION SHALL BE GIVEN AN OPPORTUNITY  TO  SUBMIT  A  WRITTEN
 ANSWER TO ANY APPLICATION.
   (4)  WHEN  THE  LOCAL  REGULATED  HOUSING  RESTORATION ADJUSTMENT RENT
 AMOUNT IS DETERMINED TO EXCEED THE SECTION 8  VOUCHER  PAYMENT  STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED  WITHIN  THE  SAME  ZIP  CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED, THE COMMISSIONER OF HOUSING  AND  COMMUNITY  RENEWAL
 SHALL  ORDER THAT THE LEGAL REGULATED RENT FOR THE SUBJECT UNIT SHALL BE
 EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION 8 VOUCHER PAYMENT  STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED  WITHIN  THE  SAME  ZIP  CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED; EXCEPT THAT THE  LEGAL  REGULATED  RENTS  FOR  UNITS
 SUBJECT  TO HOUSING SUBSIDY VOUCHERS SHALL BE EQUAL TO THE CONTRACT RENT
 AMOUNT APPROVED BY THE LOCAL HOUSING AUTHORITY THAT ISSUES THE  VOUCHER.
 ANY  REQUIRED  REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR AS A CREDIT
 AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   B. NOTWITHSTANDING SUBDIVISION A OF THIS SECTION,  PROVIDED  THAT  THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION A OF SECTION 26-511.2 OF THIS CHAPTER,  THE  DIVISION  SHALL
 ONLY  DETERMINE  WHETHER  THE  TENANCY  IS  SUBJECT TO A HOUSING SUBSIDY
 VOUCHER AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT  AFTER
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT EXCEEDS THE SECTION 8
 VOUCHER  PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A
 UNIT OF THE SAME SIZE LOCATED WITHIN THE  SAME  ZIP  CODE  THAT  WAS  IN
 EFFECT  AT THE TIME THE LEASE WAS EXECUTED.  ANY DOCUMENTATION DEFICIEN-
 CIES SHALL BE RESOLVED THROUGH THE AUDIT PROCESS SET  FORTH  IN  SECTION
 26-511.2 OF THIS CHAPTER.
   C.  IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION  ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING  BY  CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE TENANT HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF  HOUS-
 ING  AND  COMMUNITY RENEWAL THAT THE LOCAL REGULATED HOUSING RESTORATION
 ADJUSTMENT WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL  REGU-
 LATED  RENT,  A  DESCRIPTION OF WORK COMPLETED, THE BUILDING ADDRESS AND
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED, AND SUCH TENANT'S
 RIGHT TO FILE AN APPLICATION CHALLENGING THE NEW LEGAL REGULATED RENT OF
 SUCH HOUSING ACCOMMODATION.
   § 4. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
 576  of  the  laws of 1974, constituting the emergency tenant protection
 act of nineteen seventy-four, as amended by chapter 102 of the  laws  of
 1984, is amended and a new paragraph 6 is added to read as follows:
   (5) as an alternative to the hardship application provided under para-
 graph four of this subdivision, owners of buildings acquired by the same
 owner or a related entity owned by the same principals three years prior
 to  the  date  of application may apply to the division for increases in
 excess of the level of applicable guideline increases established  under
 this  law  based  on  a  finding by the commissioner that such guideline
 increases are not sufficient to enable the owner to maintain  an  annual
 gross  rent  income for such building which exceeds the annual operating
 S. 6352--C                          5
 
 expenses of such building by a sum equal to at  least  five  percent  of
 such  gross rent. For the purposes of this paragraph, operating expenses
 shall consist of the actual, reasonable, costs of  fuel,  labor,  utili-
 ties,  taxes,  other  than  income  or  corporate franchise taxes, fees,
 permits, necessary contracted services and non-capital  repairs,  insur-
 ance, parts and supplies, management fees and other administrative costs
 and  mortgage  interest.  For  the  purposes of this paragraph, mortgage
 interest shall be deemed to  mean  interest  on  a  bona  fide  mortgage
 including  an allocable portion of charges related thereto.  Criteria to
 be considered in determining a bona fide mortgage other than an institu-
 tional mortgage shall include; condition of the  property,  location  of
 the  property,  the existing mortgage market at the time the mortgage is
 placed, the term of the mortgage, the amortization rate,  the  principal
 amount  of  the mortgage, security and other terms and conditions of the
 mortgage. The commissioner shall set a rental value for any  unit  occu-
 pied  by the owner or a person related to the owner or unoccupied at the
 owner's choice for more than one month at the last regulated  rent  plus
 the minimum number of guidelines increases or, if no such regulated rent
 existed  or  is  known,  the commissioner shall impute a rent consistent
 with other rents in the building. The amount of hardship increase  shall
 be  such  as may be required to maintain the annual gross rent income as
 provided by this paragraph. The division  shall  not  grant  a  hardship
 application  under  this paragraph or paragraph four of this subdivision
 for a period of three years subsequent to granting a  hardship  applica-
 tion  under  the  provisions  of  this  paragraph. The collection of any
 increase in the rent for any  housing  accommodation  pursuant  to  this
 paragraph  shall  not  exceed six percent in any year from the effective
 date of the order granting the increase over the rent set forth  in  the
 schedule  of gross rents, with collectability of any dollar excess above
 said sum to be spread forward in similar increments  and  added  to  the
 rent  as  established  or  set  in future years. No application shall be
 approved unless the owner's equity in such building exceeds five percent
 of: (i) the arms length purchase price of the property; (ii) the cost of
 any capital improvements  for  which  the  owner  has  not  collected  a
 surcharge; (iii) any repayment of principal of any mortgage or loan used
 to  finance the purchase of the property or any capital improvements for
 which the owner has not collected a surcharge; and (iv) any increase  in
 the  equalized  assessed value of the property which occurred subsequent
 to the first valuation of the property after purchase by the owner.  For
 the purposes of this paragraph, owner's equity shall mean the sum of (i)
 the purchase price of the property less the principal of any mortgage or
 loan  used to finance the purchase of the property, (ii) the cost of any
 capital improvement for which the owner has not  collected  a  surcharge
 less the principal of any mortgage or loan used to finance said improve-
 ment,  (iii) any repayment of the principal of any mortgage or loan used
 to finance the purchase of the property or any capital  improvement  for
 which  the owner has not collected a surcharge, and (iv) any increase in
 the equalized assessed value of the property which  occurred  subsequent
 to  the  first valuation of the property after purchase by the owner[.];
 OR
   (6) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER
 TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT  TO  THIS  CHAPTER
 HAS  BEEN  VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN YEARS OR
 MORE PRIOR TO VACANCY, AND THE OWNER CAN DEMONSTRATE RESTORATION OF  THE
 UNIT  AS  SET FORTH IN SUBDIVISION (A-1) OF SECTION TEN OF THIS CHAPTER,
 THE NEW LEGAL REGULATED RENT SHALL BE THE RENT AGREED TO  BY  THE  OWNER
 S. 6352--C                          6
 
 AND FIRST TENANT AFTER SUCH RESTORATION AND RESERVED IN A LEASE OR OTHER
 RENTAL  AGREEMENT;  PROVIDED  THAT  SUCH NEW LEGAL REGULATED RENT:   (I)
 SHALL NOT EXCEED THE SECTION 8 VOUCHER PAYMENT  STANDARD  ADOPTED  BY  A
 LOCAL  PUBLIC  HOUSING  AGENCY  FOR  A UNIT OF THE SAME SIZE AND LOCATED
 WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME  THE  LEASE  WAS
 EXECUTED; AND (II) MAY BE ADJUSTED ON AUDIT BY THE DIVISION UNDER SUBDI-
 VISION  (A-1)  OF  SECTION  TEN  OF THIS CHAPTER, OR ON APPLICATION OF A
 TENANT OR OWNER UNDER SUBDIVISION D-1 OF SECTION NINE OF  THIS  CHAPTER.
 THE LEGAL REGULATED RENT ADJUSTMENT SET FORTH IN THIS PARAGRAPH SHALL BE
 KNOWN AS THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.
   §  5.  Section  10  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 (a-1) to read as follows:
   (A-1)  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH A
 NOTIFICATION PROCEDURE AND DOCUMENTATION SUBMISSION GUIDELINES  FOR  THE
 LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT.  A. DOCUMENTATION TO
 QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT SHALL  BE
 LIMITED TO:
   (1)  XRF TEST RESULTS OR OTHER DOCUMENTATION DEMONSTRATING A LEAD-FREE
 HOUSING ACCOMMODATION UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION PLANS OR SIMILAR SUBMISSIONS TO THE
 LOCAL BUILDING DEPARTMENT IN CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES OR CERTIFICATIONS;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7) EVIDENCE OF RENTING TO A HOUSING SUBSIDY VOUCHER  HOLDER,  OR  THE
 SECTION  8  VOUCHER  PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED;
   (8)  EVIDENCE  OF  RENTING  TO  A  HOUSING  SUBSIDY VOUCHER HOLDER, OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION,  A
 FORM TO BE PROMULGATED BY THE DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION  ADJUSTMENT  WAS  VOLUNTARY  AND  NOT  THE RESULT OF UNLAWFUL OWNER
 HARASSMENT. IN CONSIDERING THE SUFFICIENCY OF  ALTERNATE  DOCUMENTATION,
 AND  NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION, VACATUR
 SHALL BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT  WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC COMMUNICATIONS, RECORDINGS, OR OTHER  EVIDENCE  OF  VOLUNTARY
 VACATUR,  OR  (III)  THE OWNER DEMONSTRATES THE PREVIOUS TENANT DIED AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B. THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT  SHALL  NOT  BE
 PERMITTED:
   (1)  FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2) FOR UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH  PERIOD  AFTER
 DETERMINATION  BY  THE  DIVISION  THAT THE OWNER HAS ENGAGED IN UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT;
   (3) FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND  DEVEL-
 OPMENT'S ALTERNATIVE ENFORCEMENT PROGRAM; OR
   (4) AFTER AN UNLAWFUL EVICTION.
 S. 6352--C                          7
 
   C.  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH AN
 AUDIT PROCESS TO REVIEW A PERCENTAGE, AS ESTABLISHED BY THE DIVISION, OF
 HOUSING ACCOMMODATIONS THAT  REGISTER  ADJUSTED  LEGAL  REGULATED  RENTS
 UNDER  THE  LOCAL  REGULATED HOUSING RESTORATION ADJUSTMENT.   THE DIVI-
 SION'S  ESTABLISHED  AUDIT  PROCESS  SHALL  BE  SUBJECT TO THE FOLLOWING
 REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET FORTH IN PARAGRAPH A OF THIS SUBDIVISION  HAS  BEEN  SUBMITTED;  AND
 (II)  UNLESS  RENTED  TO  A HOUSING SUBSIDY VOUCHER HOLDER, CONFIRMATION
 THAT THE UNITS AGREED UPON RENT AS RESERVED IN A  LEASE  AGREEMENT  DOES
 NOT  EXCEED  THE  SECTION  8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL
 PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE
 SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME  THE  LEASE  WAS  EXECUTED.
 SUCH AUDIT SHALL BE INITIATED WITHIN ONE YEAR OF THE FILING OF AN ANNUAL
 APARTMENT  REGISTRATION  INDICATING AN ADJUSTMENT TO THE LEGAL REGULATED
 RENT UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT; AND
   (2) IF AN AUDIT UNDER THIS SUBDIVISION DETERMINES THAT: (I)  AN  OWNER
 HAS  FAILED  TO  SUBMIT DOCUMENTATION SET FORTH IN SUBDIVISION A OF THIS
 SECTION AND THE OWNER THEN FAILS TO  SUBMIT  ANY  MISSING  DOCUMENTATION
 AFTER  SIXTY  DAYS'  WRITTEN NOTICE FROM THE DIVISION; OR (II) THE LOCAL
 HOUSING RESTORATION ADJUSTMENT EXCEEDS THE  SECTION  8  VOUCHER  PAYMENT
 STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME
 SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME
 THE  LEASE WAS EXECUTED, THE DIVISION SHALL SET THE SUBJECT UNIT'S LEGAL
 REGULATED RENT AT AN AMOUNT EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION
 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY  FOR
 A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT  AT  THE TIME THE LEASE WAS EXECUTED, PROVIDED, HOWEVER, THAT THE
 LEGAL REGULATED RENTS FOR UNITS  SUBJECT  TO  HOUSING  SUBSIDY  VOUCHERS
 SHALL  BE ESTABLISHED AT THE CONTRACT RENT AMOUNT APPROVED BY THE AGENCY
 ADMINISTERING THE VOUCHER.
   (3) ANY REQUIRED REFUNDS SHALL BE  MADE  IN  ACCORDANCE  WITH  SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT  TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS OR
 THAT ARE IN COMMUNITIES OF NEED, THE  DIVISION  SHALL  ESTABLISH  INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING  PROVIDERS  WHO  RENT  TO HOUSING SUBSIDY VOUCHER HOLDERS LOCATED IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E. ACCESS TO THE DOCUMENTATION SUBMITTED AS PART OF  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME LAWS
 GOVERNING ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH  THE
 DIVISION.
   §  6.  Section  9  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 d-1 to read as follows:
   D-1.  (1) THE TENANT OF A HOUSING ACCOMMODATION THAT WAS VACANT ON, OR
 BECAME VACANT AFTER, JUNE 14, 2019, AND HAS BEEN SUBJECT  TO  THE  LOCAL
 REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE WITH THE COMMISSIONER
 WITHIN  120 DAYS AFTER NOTICE HAS BEEN RECEIVED UNDER PARAGRAPH THREE OF
 THIS SUBDIVISION AN APPLICATION FOR THE ADJUSTMENT OF THE RENT FOR  SUCH
 HOUSING  ACCOMMODATION.    SUCH  APPLICATIONS  SHALL  BE  SUBJECT TO THE
 FOLLOWING:
   (I) IN THE APPLICATION, THE TENANT MUST ALLEGE THAT  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE SECTION 8 VOUCHER
 PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT  OF
 S. 6352--C                          8
 
 THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT
 THE TIME THE LEASE WAS EXECUTED;
   (II) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ONLY CONSIDER WHETH-
 ER  THE  SUBJECT  RENT  EXCEEDS  THE  SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE WAS EXECUTED;
   (III) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER  THIS  SECTION  SHALL  BE GIVEN AN OPPORTUNITY TO SUBMIT A WRITTEN
 ANSWER TO ANY APPLICATION; AND
   (IV) WHEN THE LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT  RENT
 AMOUNT  IS  DETERMINED  TO EXCEED THE SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE  WAS  EXECUTED,  THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL
 SHALL ORDER THAT THE LEGAL REGULATED RENT FOR THE SUBJECT UNIT SHALL  BE
 EQUAL  TO SEVENTY-FIVE PERCENT OF THE SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE  WAS  EXECUTED;  PROVIDED, HOWEVER, THAT THE LEGAL REGULATED RENTS
 FOR UNITS SUBJECT TO HOUSING SUBSIDY VOUCHERS  SHALL  BE  EQUAL  TO  THE
 CONTRACT RENT AMOUNTS APPROVED BY THE LOCAL HOUSING AGENCY ADMINISTERING
 THE VOUCHER.  ANY REQUIRED REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR
 AS A CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   (2) NOTWITHSTANDING PARAGRAPH A OF THIS SUBDIVISION, PROVIDED THAT THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION (A-1) OF SECTION TEN OF THIS  CHAPTER,  THE  DIVISION  SHALL
 ONLY  DETERMINE  WHETHER  THE  TENANCY  IS  SUBJECT TO A HOUSING SUBSIDY
 VOUCHER AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT  AFTER
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT EXCEEDS THE SECTION 8
 VOUCHER  PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A
 UNIT OF THE SAME SIZE LOCATED WITHIN THE  SAME  ZIP  CODE  THAT  WAS  IN
 EFFECT  AT THE TIME THE LEASE WAS EXECUTED.  ANY DOCUMENTATION DEFICIEN-
 CIES SHALL BE RESOLVED THROUGH THE AUDIT PROCESS SET FORTH  IN  SUBDIVI-
 SION (A-1) OF SECTION TEN OF THIS CHAPTER.
   (3) IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT  WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING BY CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE  TENANT  HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING  ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL THAT THE LOCAL REGULATED  HOUSING  RESTORATION
 ADJUSTMENT  WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL REGU-
 LATED RENT, A DESCRIPTION OF WORK COMPLETED, THE  BUILDING  ADDRESS  AND
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED, AND SUCH TENANT'S
 RIGHT TO FILE AN APPLICATION FOR ADJUSTMENT OF THE NEW  LEGAL  REGULATED
 RENT OF SUCH HOUSING ACCOMMODATION.
   §  7.  This  act  shall take effect immediately; and provided that the
 amendments to chapter 4 of title 26 of the administrative  code  of  the
 city  of  New York made by sections one, two and 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.

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