S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8533
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2025
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Housing
 
 AN ACT to amend the administrative code of the city of New York and  the
   emergency  tenant protection act of nineteen seventy-four, in relation
   to the composition of rent guidelines boards, and the  factors  to  be
   considered  in  establishing  annual  rent  adjustments; and to repeal
   certain provisions of the emergency tenant protection act of  nineteen
   seventy-four relating to rent guidelines boards in counties
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and  may  be  cited  as  the  "rent
 guidelines board reform act".
   §  2.  Subdivisions a, b, c and h of section 26-510 of the administra-
 tive code of the city of New York, subdivision b as amended by section 4
 of part C of chapter 36 of the laws of 2019, are  amended  and  two  new
 subdivisions k and l are added to read as follows:
   a.  There  shall be a rent guidelines board to consist of [nine] SEVEN
 members, [appointed] NOMINATED by the mayor SUBJECT TO CONFIRMATION BY A
 VOTE OF THE CITY COUNCIL, WHICH SHALL CONDUCT  A  PUBLIC  HEARING  ON  A
 NOMINATION WITHIN THIRTY DAYS OF RECEIPT OF A NOMINATION FROM THE MAYOR.
 Two  members  shall be representative of tenants, two shall be represen-
 tative of owners of property, and [five] THREE shall be  public  members
 [each].   EACH of [whom] THE PUBLIC MEMBERS shall have had at least five
 [years] YEARS' experience  in  [either]  PUBLIC  SERVICE,  PHILANTHROPY,
 SOCIAL  SERVICES, URBAN PLANNING, SOCIOLOGY, GEOGRAPHY, LABOR, NONPROFIT
 MANAGEMENT, finance, economics or housing. One public  member  shall  be
 designated  by  the mayor to serve as [chairman] CHAIR and shall hold no
 other public office. No member, officer or  employee  of  any  municipal
 rent  regulation  agency  or the state division of housing and community
 renewal and no person who owns or manages real  estate  covered  by  THE
 EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR this law [or

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03772-04-5
              

 A. 8533                             2

 who  is an officer of any owner or tenant organization] shall serve on a
 rent guidelines board. One public member, one member  representative  of
 tenants  and  one member representative of owners shall serve for a term
 ending  two  years  from January first next succeeding the date of their
 appointment; one public member, one member representative of tenants and
 one member representative of owners shall serve for terms  ending  three
 years  from the January first next succeeding the date of their appoint-
 ment [and two public members shall serve for  terms  ending  four  years
 from  January  first next succeeding the dates of their appointment. The
 chairman shall serve at the pleasure  of  the  mayor].  Thereafter,  all
 members  shall  continue  in  office  until  their  successors have been
 appointed and qualified. The mayor  AND  CITY  COUNCIL  shall  fill  any
 vacancy  which may occur by reason of death, resignation or otherwise in
 a manner consistent with  the  original  appointment.  ALL  APPOINTMENTS
 THEREAFTER  SHALL  BE  CONFIRMED BY A VOTE OF THE CITY COUNCIL. A member
 may be removed by the mayor for cause, but not without an opportunity to
 be heard in person or by counsel, in [his or her]  THEIR  defense,  upon
 not less than ten days notice.
   b.  The  rent guidelines board shall establish annual [guidelines for]
 rent adjustments, IF ANY, and in determining whether rents  for  housing
 accommodations  subject  to the emergency tenant protection act of nine-
 teen seventy-four or this law shall be adjusted  shall  consider,  among
 other  things (1) [the economic condition of the residential real estate
 industry in the affected area including such factors as  the  prevailing
 and  projected  (i)  real  estate  taxes and sewer and water rates, (ii)
 gross operating maintenance costs (including  insurance  rates,  govern-
 mental fees, cost of fuel and labor costs), (iii) costs and availability
 of  financing  (including  effective  rates  of interest), (iv) over-all
 supply of housing accommodations and over-all  vacancy  rates  (2)]  THE
 STATE OF THE RENTAL REAL ESTATE MARKET AND SUBMARKETS WITHIN THE CITY OF
 NEW  YORK,  INCLUDING  THE  AVAILABILITY OF AFFORDABLE, HABITABLE RENTAL
 HOUSING ACCOMMODATIONS, (2) THE ECONOMIC CONDITION  OF  THE  RESIDENTIAL
 REAL ESTATE INDUSTRY, INCLUDING CHANGES IN THE VALUE OF RESIDENTIAL REAL
 ESTATE,  THE  PROFITABILITY  OF  OWNERSHIP  OF  RENTAL  HOUSING AND SUCH
 FACTORS AS THE PREVAILING (I) INCREASES OR DECREASES IN RENTS AND  GROSS
 RENTAL  INCOME,  INCLUDING  INCOME  FROM  OTHER  THAN RESIDENTIAL RENTS,
 INCLUDING IMPUTED RENTAL VALUE FOR  APARTMENTS  OCCUPIED  BY  OWNERS  OR
 MEMBERS OF THEIR FAMILIES OR ASSOCIATES OF OWNERS, FOR BUILDINGS SUBJECT
 TO  THIS LAW OR THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-
 FOUR, (II) INCREASES OR DECREASES IN OPERATION AND MAINTENANCE COSTS  OF
 BUILDINGS  SUBJECT TO THIS LAW OR THE EMERGENCY TENANT PROTECTION ACT OF
 NINETEEN SEVENTY-FOUR INCLUDING  REAL  ESTATE  TAXES,  SEWER  AND  WATER
 RATES,  INSURANCE  RATES, ADMINISTRATIVE COSTS, GOVERNMENTAL FEES, FUEL,
 UTILITIES, AND LABOR, (III) COSTS AND AVAILABILITY OF FINANCING (INCLUD-
 ING EFFECTIVE RATES OF INTEREST) AND COSTS, AVAILABILITY AND PROFITABIL-
 ITY OF REFINANCING, (IV) ECONOMIC BENEFITS, OTHER  THAN  RENTAL  INCOME,
 DERIVED FROM THE OWNERSHIP AND UPGRADING OF RENTAL PROPERTY, (V) RETURNS
 ON  CAPITAL  PLACED  AT  RISK BY OWNERS, (VI) OVER-ALL SUPPLY OF HOUSING
 ACCOMMODATIONS AND OVER-ALL VACANCY RATES, (VII) INCREASES OR  DECREASES
 IN NET OPERATING INCOME OF BUILDINGS SUBJECT TO THIS LAW OR THE EMERGEN-
 CY  TENANT  PROTECTION  ACT  OF NINETEEN SEVENTY-FOUR, (3) relevant data
 from the current and projected cost of living indices for  the  affected
 area,  [(3)]  (4) MEDIAN TENANT INCOMES AND RENT BURDENS FOR TENANTS AND
 OTHER MEASURES OF AFFORDABILITY, (5) such other  data  as  may  be  made
 available to it.  NET OPERATING INCOME SHALL MEAN THE PERCENTAGE OF EACH
 DOLLAR  OF  GROSS  RENTAL INCOME REMAINING AFTER PAYMENT OF ALL COSTS OF
 A. 8533                             3
 
 OPERATION AND MAINTENANCE. DEBT SERVICE PAYMENTS,  CAPITAL  EXPENDITURES
 AND  DEPRECIATION  SHALL  NOT  BE  CONSIDERED  OPERATION AND MAINTENANCE
 COSTS, AND THE RENT GUIDELINES BOARD SHALL  NOT  CONSIDER  DEBT  SERVICE
 PAYMENTS,  CAPITAL  EXPENDITURES  OR  DEPRECIATION IN DETERMINING ANNUAL
 RENT ADJUSTMENTS.  THE BOARD SHALL NOT CONSIDER A PRICE INDEX OF OPERAT-
 ING COSTS WHEN DETERMINING ANNUAL ADJUSTMENTS.  Not  later  than  [July]
 DECEMBER  first  of each year, the rent guidelines board shall file with
 the city clerk its findings for the preceding calendar year,  and  shall
 accompany  such findings with a statement of the [maximum] rate or rates
 of rent adjustment, if any, for one or more classes of HOUSING  accommo-
 dations  subject  to  this law OR THE EMERGENCY TENANT PROTECTION ACT OF
 NINETEEN SEVENTY-FOUR, authorized for VACANCY LEASES OR  RENEWAL  leases
 or  other  rental agreements commencing on the next succeeding [October]
 MARCH first or within the twelve months thereafter.  Such  findings  and
 statement  shall be published in the City Record AND THE RENT GUIDELINES
 BOARD SHALL DISSEMINATE SUCH FINDINGS  AND  STATEMENT  TO  CITYWIDE  AND
 LOCAL  NEWSPAPERS,  RADIO  AND TELEVISION STATIONS AND OTHER MEDIA.  The
 rent guidelines board shall not establish annual [guidelines  for]  rent
 adjustments  based on the current rental cost of a unit or on the amount
 of time that has elapsed since another rent  [increase]  ADJUSTMENT  was
 authorized pursuant to this title.
   c.  [Such]  AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
 THOUSAND TWENTY-FIVE THAT AMENDED THIS SUBDIVISION UNTIL DECEMBER  THIR-
 TY-FIRST,  TWO THOUSAND TWENTY-SIX members shall be compensated on a per
 diem basis of [one] TWO hundred dollars per day for no more  than  twen-
 ty-five  days  a  year except that the [chairman] CHAIR shall be compen-
 sated at [one] TWO hundred [twenty-five] FIFTY dollars a day for no more
 than fifty days a year.  BEGINNING JANUARY FIRST, TWO  THOUSAND  TWENTY-
 SEVEN  AND  ANNUALLY THEREAFTER COMPENSATION SHALL BE UPDATED TO REFLECT
 THE ANNUAL AVERAGE CHANGES OF THE CONSUMER PRICE  INDEX  FOR  ALL  URBAN
 CONSUMERS (CPI-U), AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT
 OF LABOR BUREAU OF LABOR STATISTICS. The [chairman] CHAIR shall be chief
 administrative  officer  of  the rent guidelines board and among [his or
 her] SUCH CHAIR'S powers and duties [he or she] SUCH  CHAIR  shall  have
 the  authority to employ, assign and supervise the employees of the rent
 guidelines board and SHALL, WITH THE ADVICE AND CONSENT OF FOUR OR  MORE
 OTHER  MEMBERS  OF  THE  RENT GUIDELINES BOARD, enter into contracts for
 consultant services. The department of housing preservation and develop-
 ment shall cooperate with the  rent  guidelines  board  and  may  assign
 personnel and perform such services in connection with the duties of the
 rent  guidelines  board  as may reasonably be required by the [chairman]
 RENT GUIDELINES BOARD.
   h. The rent guidelines board prior to the  annual  adjustment  of  the
 level of fair rents provided for under subdivision b of this section for
 dwelling  units and hotel dwelling units covered by this law, shall hold
 a public hearing or hearings for the purpose of  collecting  information
 relating  to  all  factors  set  forth in subdivision b of this section.
 Notice of the date, time, location and summary of subject matter for the
 public hearing or hearings shall be published in the City  Record  daily
 for  a  period  of  not less than eight days and at least once in one or
 more newspapers of general circulation at least eight  days  immediately
 preceding each hearing date, at the expense of the city of New York, and
 the  hearing  shall  be  open  for testimony from any individual, group,
 association or representative thereof who wants  to  testify.  A  PUBLIC
 HEARING  SHALL  BE  HELD  IN  EACH  OF THE FOLLOWING COUNTIES: NEW YORK,
 A. 8533                             4
 
 KINGS, QUEENS, RICHMOND AND BRONX.   ADDITIONALLY, THERE  SHALL  BE  ONE
 HEARING THAT ACCEPTS TESTIMONY VIRTUALLY.
   K.  ALL  OWNERS  OF  HOUSING ACCOMMODATIONS SUBJECT TO THIS LAW OR THE
 EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR SHALL  ANNUALLY
 SUBMIT  INCOME  AND EXPENDITURE REPORTS TO THE NEW YORK CITY RENT GUIDE-
 LINES BOARD ON A FORM TO BE PROMULGATED BY THE BOARD.   THE RENT  GUIDE-
 LINES BOARD IS AUTHORIZED TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT
 OF  FINANCE  TO IMPLEMENT THIS FUNCTION ON BEHALF OF THE RENT GUIDELINES
 BOARD, PURSUANT TO LOCAL LAW NUMBER SIXTY-THREE OF THE CITY OF NEW  YORK
 FOR  THE  YEAR  NINETEEN  HUNDRED  EIGHTY-SIX,  PROVIDED THAT INCOME AND
 EXPENDITURE DATA FOR THE LAST CALENDAR YEAR SHALL  BE  PROVIDED  TO  THE
 RENT GUIDELINES BOARD NO LATER THAN FORTY-FIVE DAYS PRIOR TO ITS PRELIM-
 INARY VOTE.  OWNERS WHO FAIL TO SUBMIT SUCH REPORTS SHALL BE BARRED FROM
 APPLYING  FOR OR COLLECTING ANY RENT ADJUSTMENT TO WHICH THE OWNER MIGHT
 OTHERWISE BE ENTITLED UNDER THE EMERGENCY TENANT PROTECTION ACT OF NINE-
 TEEN SEVENTY-FOUR OR THIS LAW DURING THE TWELVE-MONTH  PERIOD  BEGINNING
 THE  NEXT  MARCH  FIRST, AND THE STATE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL SHALL  FINE  SUCH  OWNERS  ONE  THOUSAND  DOLLARS  FOR  A  FIRST
 VIOLATION, FIVE THOUSAND DOLLARS FOR A SECOND VIOLATION, OR TEN THOUSAND
 DOLLARS FOR A THIRD OR LATER VIOLATION OF THIS REQUIREMENT.
   L. NO LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION
 AND  THEREAFTER  NO LESS OFTEN THAN EVERY TEN YEARS, THE RENT GUIDELINES
 BOARD SHALL REQUIRE A SAMPLE OF LANDLORDS SUBJECT  TO  REGULATION  UNDER
 THIS  LAW  TO  MAKE  AVAILABLE THEIR BOOKS AND RECORDS REGARDING INCOME,
 EXPENDITURES, TAX BENEFITS AND FINANCING ARRANGEMENTS FOR EXAMINATION BY
 THE BOARD AND THE BOARD SHALL UTILIZE THE RESULTS  OF  THE  ANALYSIS  OF
 SUCH  SAMPLE  AS  ONE OF THE CRITERIA UPON WHICH ITS FINDINGS ARE BASED.
 SUCH SAMPLE SHALL BE DESIGNED TO BE  REASONABLY  REPRESENTATIVE  OF  THE
 TYPES  OF  BUILDINGS,  EXCLUDING  BUILDINGS  THAT HAVE BEEN CONVERTED TO
 CO-OPERATIVE OR CONDOMINIUM STATES, THAT ARE SUBJECT TO REGULATION UNDER
 THIS LAW OR THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR
 WITHIN THE MUNICIPALITY. ANY INFORMATION PROVIDED BY OWNERS PURSUANT  TO
 THIS  SUBDIVISION REGARDING AN INDIVIDUAL BUILDING OR GROUP OF BUILDINGS
 SHALL NOT BE AVAILABLE TO THE PUBLIC UNDER THE  FREEDOM  OF  INFORMATION
 LAW AND THE RENT GUIDELINES BOARD SHALL SAFEGUARD THE CONFIDENTIALITY OF
 SUCH  INFORMATION  PROVIDED HOWEVER, THAT THE BOARD SHALL MAKE AVAILABLE
 TO THE PUBLIC CUMULATIVE AND STATISTICAL RESULTS OF  THE  ANNUAL  INCOME
 AND  EXPENDITURE  SUBMISSIONS  AND THE EXAMINATION OF THE REPRESENTATIVE
 SAMPLE OF BOOKS AND RECORDS REQUIRED HEREIN.
   § 3. Subdivision a of section 4 of section 4 of  chapter  576  of  the
 laws  of 1974, constituting the emergency tenant protection act of nine-
 teen seventy-four, as amended by section 5 of part G of  chapter  36  of
 the laws of 2019, is amended to read as follows:
   a.  In  each  county wherein any city having a population of less than
 one million or any town or village has determined the  existence  of  an
 emergency  pursuant to section three of this act, there shall be created
 a rent guidelines board to consist of [nine] SEVEN members appointed  by
 the  [commissioner  of housing and community renewal upon recommendation
 of the] county legislature, except that a rent guidelines board  created
 subsequent  to the effective date of [the] chapter 36 of the laws of two
 thousand nineteen [that amended this section] shall  consist  of  [nine]
 SEVEN  members  appointed  by [the commissioner of housing and community
 renewal upon recommendations of] the local legislative body of each city
 having a population of less than one million or town  or  village  which
 has  determined  the existence of an emergency pursuant to section three
 of this act. Such [recommendation] APPOINTMENTS  shall  be  made  within
 A. 8533                             5
 
 thirty  days  after  the first local declaration of an emergency in such
 county, CITY, TOWN, OR VILLAGE; two such members shall be representative
 of tenants, two shall be  representative  of  owners  of  property,  and
 [five]  THREE shall be public members [each of whom]. EACH OF THE PUBLIC
 MEMBERS shall have had  at  least  five  [years]  YEARS'  experience  in
 [either]  PUBLIC SERVICE, PHILANTHROPY, SOCIAL SERVICES, URBAN PLANNING,
 SOCIOLOGY, GEOGRAPHY, LABOR, NONPROFIT MANAGEMENT, finance, economics or
 housing. One public member shall be  designated  by  the  [commissioner]
 COUNTY  LEGISLATURE  OR  LOCAL  LEGISLATIVE  BODY to serve as [chairman]
 CHAIR and shall hold no other  public  office.  No  member,  officer  or
 employee  of  any municipal rent regulation agency or the state division
 of housing and community renewal and no person who owns or manages  real
 estate  covered by this law or [who is an officer of any owner or tenant
 organization] THE NEW YORK  CITY  RENT  STABILIZATION  LAW  OF  NINETEEN
 HUNDRED  SIXTY-NINE  OR  MORE  THAN TWO RENTAL APARTMENTS NOT COVERED BY
 THIS LAW OR THE NEW YORK CITY RENT STABILIZATION LAW OF NINETEEN HUNDRED
 SIXTY-NINE shall serve on a rent guidelines board.  One  public  member,
 one  member  representative  of tenants and one member representative of
 owners shall serve for a term ending two years from January  first  next
 succeeding  the date of their appointment; one public member, one member
 representative of tenants and one member representative of owners  shall
 serve  for terms ending three years from the January first next succeed-
 ing the date of their appointment [and three public members shall  serve
 for terms ending four years from January first next succeeding the dates
 of  their appointment]. Thereafter, all members shall serve for terms of
 four years each. Members shall continue in  office  until  [their]  SUCH
 MEMBER'S  successors have been appointed and qualified. The [commission-
 er] COUNTY LEGISLATURE OR LOCAL LEGISLATIVE BODY shall fill any  vacancy
 which  may  occur  by  reason  of  death, resignation or otherwise in [a
 manner consistent] ACCORDANCE with the [original appointment] PROVISIONS
 OF THIS SUBDIVISION.  A member OF A COUNTY RENT GUIDELINES BOARD may  be
 removed  by  the  [commissioner]  COUNTY  LEGISLATURE for cause, but not
 without an opportunity to be heard in person or  by  counsel,  in  [his]
 SUCH  MEMBER'S  defense,  upon not less than ten [days] DAYS' notice.  A
 MEMBER OF A MUNICIPAL RENT GUIDELINES BOARD MAY BE REMOVED BY THE  LOCAL
 LEGISLATIVE  BODY  FOR CAUSE, BUT NOT WITHOUT AN OPPORTUNITY TO BE HEARD
 IN PERSON OR BY COUNSEL, IN SUCH MEMBER'S DEFENSE, UPON  NOT  LESS  THAN
 TEN  DAYS' NOTICE. Compensation for the members of the board shall be ON
 A PER DIEM BASIS at the rate of [one] TWO hundred dollars per  day,  for
 no  more than twenty days a year, except that the [chairman] CHAIR shall
 be compensated at the rate of  [one]  TWO  hundred  [twenty-five]  FIFTY
 dollars  a  day for no more than thirty days a year. The [board shall be
 provided staff assistance by the]  division  of  housing  and  community
 renewal  SHALL  COOPERATE  WITH THE COUNTY AND MUNICIPAL RENT GUIDELINES
 BOARDS  AND  SHALL  ASSIGN  PERSONNEL  AND  PERFORM  SUCH  SERVICES   IN
 CONNECTION  WITH THE DUTIES OF THE RENT GUIDELINES BOARDS AS MAY REASON-
 ABLY BE REQUIRED BY THE BOARDS.  [The compensation of such  members  and
 the  costs  of staff assistance shall be paid by the division of housing
 and community renewal which shall be reimbursed in the manner prescribed
 in section four of this act. The local legislative  body  of  each  city
 having  a  population of less than one million and each town and village
 in which an emergency has been determined to exist  as  herein  provided
 shall  be authorized to designate one person who shall be representative
 of tenants and one person who shall be representative of owners of prop-
 erty to serve at its pleasure and without  compensation  to  advise  and
 assist the county rent guidelines board in matters affecting the adjust-
 A. 8533                             6

 ment  of  rents for housing accommodations in such city, town or village
 as the case may be.]
   §  4. Subdivision a-1 of section 4 of section 4 of chapter 576  of the
 laws of 1974, constituting the emergency tenant protection act of  nine-
 teen seventy-four, is REPEALED.
   §  5.  Subdivision  b  of section 4 of section 4 of chapter 576 of the
 laws of 1974, constituting the emergency tenant protection act of  nine-
 teen  seventy-four,  as  amended by chapter 486 of the laws of 1976, the
 opening paragraph as amended by section 3 of part Q of chapter 39 of the
 laws of 2019, and  the  second  and  third  undesignated  paragraphs  as
 amended  by  chapter  330  of the laws of 1980, is amended and three new
 subdivisions f, g and h are added to read as follows:
   b. A county OR MUNICIPAL rent guidelines board shall establish  annual
 [guidelines for] rent adjustments, IF ANY, which, at its sole discretion
 may  be varied and different for and within the several zones and juris-
 dictions of the board, and in  determining  whether  rents  for  housing
 accommodations  as  to  which an emergency has been declared pursuant to
 this act shall be adjusted, shall consider among other things  (1)  [the
 economic  condition  of  the  residential  real  estate  industry in the
 affected area including such factors as the prevailing and projected (i)
 real estate taxes and sewer and water rates, (ii) gross operating  main-
 tenance  costs  (including  insurance  rates, governmental fees, cost of
 fuel and  labor  costs),  (iii)  costs  and  availability  of  financing
 (including effective rates of interest), (iv) over-all supply of housing
 accommodations  and  over-all vacancy rates (2)] THE STATE OF THE RENTAL
 REAL ESTATE MARKET AND SUBMARKETS  WITHIN  THOSE  AREAS,  INCLUDING  THE
 AVAILABILITY OF AFFORDABLE, HABITABLE RENTAL HOUSING ACCOMMODATIONS, (2)
 THE  ECONOMIC CONDITION OF THE RESIDENTIAL REAL ESTATE INDUSTRY, INCLUD-
 ING CHANGES IN THE VALUE OF RESIDENTIAL REAL ESTATE,  THE  PROFITABILITY
 OF  OWNERSHIP  OF  RENTAL HOUSING AND SUCH FACTORS AS THE PREVAILING (I)
 INCREASES OR DECREASES IN  RENTS  AND  GROSS  RENTAL  INCOME,  INCLUDING
 INCOME FROM OTHER THAN RESIDENTIAL RENTS, INCLUDING IMPUTED RENTAL VALUE
 FOR  APARTMENTS OCCUPIED BY OWNERS OR MEMBERS OF THEIR FAMILIES OR ASSO-
 CIATES OF OWNERS, FOR BUILDINGS SUBJECT TO THIS ACT, (II)  INCREASES  OR
 DECREASES  IN  OPERATION  AND  MAINTENANCE COSTS OF BUILDINGS SUBJECT TO
 THIS ACT INCLUDING REAL ESTATE TAXES, SEWER AND WATER  RATES,  INSURANCE
 RATES,  ADMINISTRATIVE  COSTS,  GOVERNMENTAL  FEES, FUEL, UTILITIES, AND
 LABOR, (III) COSTS AND AVAILABILITY OF  FINANCING  (INCLUDING  EFFECTIVE
 RATES  OF  INTEREST)  AND COSTS, AVAILABILITY AND PROFITABILITY OF REFI-
 NANCING, (IV) ECONOMIC BENEFITS, OTHER THAN RENTAL INCOME, DERIVED  FROM
 THE  OWNERSHIP  AND UPGRADING OF RENTAL PROPERTY, (V) RETURNS ON CAPITAL
 PLACED AT RISK BY OWNERS, (VI) OVER-ALL SUPPLY OF HOUSING ACCOMMODATIONS
 AND OVER-ALL VACANCY RATES, (VII) INCREASES OR DECREASES IN NET  OPERAT-
 ING  INCOME OF BUILDINGS SUBJECT TO THIS ACT, (3) relevant data from the
 current and projected cost of living  indices  for  the  affected  area,
 [(3)] (4) MEDIAN INCOMES AND RENT BURDENS FOR TENANTS AND OTHER MEASURES
 OF  AFFORDABILITY,  (5) such other data as may be made available to it.
 NET OPERATING INCOME SHALL MEAN THE PERCENTAGE OF EACH DOLLAR  OF  GROSS
 RENTAL  INCOME  REMAINING  AFTER  PAYMENT  OF ALL COSTS OF OPERATION AND
 MAINTENANCE. DEBT SERVICE PAYMENTS, CAPITAL  EXPENDITURES  AND  DEPRECI-
 ATION  SHALL  NOT BE CONSIDERED OPERATION AND MAINTENANCE COSTS, AND THE
 RENT GUIDELINES BOARD SHALL NOT CONSIDER DEBT SERVICE PAYMENTS,  CAPITAL
 EXPENDITURES  OR  DEPRECIATION  IN  DETERMINING ANNUAL RENT ADJUSTMENTS.
 THE BOARD SHALL NOT CONSIDER A  PRICE  INDEX  OF  OPERATING  COSTS  WHEN
 DETERMINING  ANNUAL  ADJUSTMENTS.  As  soon  as  practicable  after  its
 creation and thereafter not later than [July]  DECEMBER  first  of  each
 A. 8533                             7
 
 year,  a  rent  guidelines  board  shall file with the state division of
 housing and community renewal its findings for  the  preceding  calendar
 year,  and shall accompany such findings with a statement of the maximum
 rate  or  rates  of  rent adjustment, if any, for one or more classes of
 accommodation subject to this act,  authorized  for  VACANCY  LEASES  OR
 RENEWAL  leases  or  other  rental agreements commencing [during] ON the
 next succeeding MARCH FIRST OR WITHIN THE twelve months THEREAFTER.  The
 standards  for  rent adjustments may be applicable for the entire county
 or MUNICIPALITY AND may be varied according to such zones  or  jurisdic-
 tions  within  such  county  as the board finds necessary to achieve the
 purposes of this subdivision.  THE STATE DIVISION OF HOUSING AND  COMMU-
 NITY RENEWAL SHALL DISSEMINATE SUCH FINDINGS AND STATEMENT TO COUNTYWIDE
 AND  LOCAL  NEWSPAPERS, RADIO AND TELEVISION STATIONS AND OTHER MEDIA. A
 rent guidelines board shall not establish annual [guidelines  for]  rent
 adjustments  based on the current rental cost of a unit or on the amount
 of time that has elapsed since another rent  [increase]  ADJUSTMENT  was
 authorized pursuant to this chapter.
   The  standards  for  rent  adjustments  established  annually shall be
 effective for leases commencing on [October] MARCH first  of  each  year
 and  during  the  next succeeding twelve months whether or not the board
 has filed its findings and statement of the maximum  rate  or  rates  of
 rent  adjustment by [July] DECEMBER first of each year. If such lease is
 entered into before such filing by the board, it  may  provide  for  the
 rent  to  be  adjusted by the rates then in effect, subject to change by
 the applicable rates of rent adjustment when filed, such  change  to  be
 effective  as  of  the date of the commencement of the lease. Said lease
 must provide that, if the new rates of rent adjustment differ for leases
 of different terms, the tenant has the option of changing  the  original
 lease  term to any other term for which a rate of rent adjustment is set
 by the board, with the rental to be adjusted accordingly.
   Where a city, town or village shall act to determine the existence  of
 public emergency pursuant to section three of this act subsequent to the
 establishment of annual [guidelines for] rent adjustments of the HOUSING
 accommodations subject to this act, the rent guidelines board as soon as
 practicable thereafter shall file its findings and rates of rent adjust-
 ment,  IF  ANY,  for  VACANCY  LEASES  OR RENEWAL leases or other rental
 agreements for the housing  accommodations  in  such  a  city,  town  or
 village,  which  rates  shall  be  effective  for leases or other rental
 agreements commencing on or after the effective  date  of  the  determi-
 nation.
   F.  IN  ADDITION TO PUBLIC HEARINGS, A COUNTY OR MUNICIPAL RENT GUIDE-
 LINES BOARD SHALL HOLD A HEARING THAT ACCEPTS TESTIMONY VIRTUALLY.
   G. ALL OWNERS OF HOUSING ACCOMMODATIONS  SUBJECT  TO  THIS  ACT  SHALL
 ANNUALLY  SUBMIT INCOME AND EXPENDITURE REPORTS TO THE DIVISION OF HOUS-
 ING AND COMMUNITY RENEWAL ON A FORM TO BE PROMULGATED BY  THE  DIVISION.
 OWNERS WHO FAIL TO SUBMIT SUCH REPORTS SHALL BE BARRED FROM APPLYING FOR
 OR  COLLECTING ANY RENT ADJUSTMENT TO WHICH THE OWNER MIGHT OTHERWISE BE
 ENTITLED UNDER THIS ACT OR THE EMERGENCY TENANT PROTECTION ACT OF  NINE-
 TEEN  SEVENTY-FOUR DURING THE TWELVE-MONTH PERIOD BEGINNING THE FIRST OF
 MARCH NEXT SUCCEEDING THE EFFECTIVE DATE OF THIS  SUBDIVISION,  AND  THE
 DIVISION  SHALL  FINE  SUCH  OWNERS  ONE  THOUSAND  DOLLARS  FOR A FIRST
 VIOLATION, FIVE THOUSAND DOLLARS FOR A SECOND VIOLATION, OR TEN THOUSAND
 DOLLARS FOR A THIRD OR LATER VIOLATION OF THIS REQUIREMENT.
   H. NO LATER THAN ONE YEAR AFTER ITS CREATION AND  THEREAFTER  NO  LESS
 OFTEN  THAN  EVERY  TEN YEARS, THE RENT GUIDELINES BOARD SHALL REQUIRE A
 SAMPLE OF OWNERS SUBJECT TO REGULATION UNDER THIS ACT WITHIN THE  JURIS-
 A. 8533                             8

 DICTION OF A COUNTY OR MUNICIPAL RENT GUIDELINES BOARD TO MAKE AVAILABLE
 THEIR BOOKS AND RECORDS REGARDING INCOME, EXPENDITURES, TAX BENEFITS AND
 FINANCING ARRANGEMENTS FOR EXAMINATION BY THE DIVISION AND THE COUNTY OR
 MUNICIPAL RENT GUIDELINES BOARD SHALL UTILIZE THE RESULTS OF ANALYSIS OF
 SUCH  SAMPLE  AS  ONE OF THE CRITERIA UPON WHICH ITS FINDINGS ARE BASED.
 SUCH SAMPLE SHALL BE DESIGNED TO BE  REASONABLY  REPRESENTATIVE  OF  THE
 TYPES  OF  BUILDINGS,  EXCLUDING  BUILDINGS  THAT HAVE BEEN CONVERTED TO
 CO-OPERATIVE OR CONDOMINIUM STATUS, THAT ARE SUBJECT TO REGULATION UNDER
 THIS ACT WITHIN THE MUNICIPALITY. ANY  INFORMATION  PROVIDED  BY  OWNERS
 PURSUANT  TO  THIS SUBDIVISION REGARDING AN INDIVIDUAL BUILDING OR GROUP
 OF BUILDINGS SHALL NOT BE AVAILABLE TO THE PUBLIC UNDER THE  FREEDOM  OF
 INFORMATION  LAW AND THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL
 SHALL SAFEGUARD THE CONFIDENTIALITY OF SUCH INFORMATION PROVIDED  HOWEV-
 ER,  THAT  THE  BOARD  SHALL MAKE AVAILABLE TO THE PUBLIC CUMULATIVE AND
 STATISTICAL RESULTS OF THE ANNUAL INCOME AND EXPENDITURE SUBMISSIONS AND
 THE EXAMINATION OF  THE  REPRESENTATIVE  SAMPLE  OF  BOOKS  AND  RECORDS
 REQUIRED HEREIN.
   §  6.  Separability.  If  any section, clause or provision in this act
 shall be held by a competent court to be unconstitutional or ineffective
 in whole or in part, to the extent that it is  not  unconstitutional  or
 ineffective,  it  shall  be  valid  and effective, and no other section,
 clause or provision shall on account thereof be deemed invalid or  inef-
 fective.
   §  7.  This act shall take effect immediately; provided, however, that
 the amendments to section 26-510 of the rent stabilization law of  nine-
 teen  hundred sixty-nine made by section two of this act shall expire on
 the same date as such law expires and shall not affect the expiration of
 such law as provided under section 26-520 of such law.