S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8898
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 12, 2025
                                ___________
 
 Introduced  by  M.  of  A.  BURROUGHS  --  read once and referred to the
   Committee on Housing
 
 AN ACT to amend the emergency    tenant  protection  act  of    nineteen
   seventy-four  and  the emergency housing rent control law, in relation
   to audits of individual  apartment   improvements   in rent  regulated
   units

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (c) of section 10-b of section 4 of chapter 576
 of the laws of 1974, constituting the emergency tenant protection act of
 nineteen seventy-four, as added by section 6 of part K of chapter 36  of
 the laws of 2019, is amended to read as follows:
   (c)  THE  DIVISION SHALL ESTABLISH, FOR REGULATED UNITS LOCATED IN ANY
 CITY HAVING A POPULATION OF LESS THAN ONE MILLION, OR A TOWN OR VILLAGE,
 FOR WHICH AN EMERGENCY HAS BEEN DECLARED PURSUANT TO  SECTION  THREE  OF
 THIS ACT, AN ANNUAL INSPECTION AND AUDIT PROCESS WHICH SHALL REVIEW FIVE
 PERCENT  OF  INDIVIDUAL  APARTMENT IMPROVEMENT NOTIFICATIONS PURSUANT TO
 THIS SECTION AND THE RULES AND REGULATIONS OF THE DIVISION. SUCH PROCESS
 SHALL INCLUDE INDIVIDUAL INSPECTIONS AND DOCUMENT REVIEW TO ENSURE  THAT
 OWNERS  COMPLIED WITH ALL OBLIGATIONS AND RESPONSIBILITIES UNDER THE LAW
 FOR INDIVIDUAL APARTMENT IMPROVEMENTS. INSPECTIONS SHALL INCLUDE IN-PER-
 SON CONFIRMATION THAT SUCH IMPROVEMENTS HAVE BEEN COMPLETED IN SUCH  WAY
 AS  DESCRIBED IN THE NOTIFICATION.  IN THE EVENT AN AUDIT FINDS THAT THE
 RECOVERABLE  COSTS CLAIMED  BY   THE LANDLORD CANNOT  BE  SUBSTANTIATED,
 THE RESULTING OVERCHARGE SHALL BE CONSIDERED TO BE WILLFUL.
   (D)  The  division  shall  issue  a notice to the landlord and all the
 tenants sixty days prior to the  end  of  the  temporary  major  capital
 improvement increase and shall include the initial approved increase and
 the  total  amount to be removed from the legal regulated rent inclusive
 of any increases granted by the applicable rent guidelines board.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13107-03-5
 A. 8898                             2
              

 
   § 2. Subdivision 3 of section 8-a of chapter 274 of the laws of  1946,
 constituting the emergency housing rent control law is renumbered subdi-
 vision 5 and two new subdivisions 3 and 4 are added to read as follows:
   3. THE DIVISION SHALL ESTABLISH, FOR HOUSING ACCOMMODATIONS OUTSIDE OF
 THE CITY OF NEW YORK, AN ANNUAL INSPECTION AND AUDIT PROCESS WHICH SHALL
 REVIEW FIVE  PERCENT  OF INDIVIDUAL  APARTMENT IMPROVEMENT NOTIFICATIONS
 PURSUANT  TO  THIS SECTION AND THE RULES AND  REGULATIONS  OF THE  DIVI-
 SION.  SUCH  PROCESS  SHALL INCLUDE INDIVIDUAL INSPECTIONS AND  DOCUMENT
 REVIEW  TO  ENSURE  THAT  OWNERS COMPLIED   WITH   ALL   OBLIGATIONS AND
 RESPONSIBILITIES UNDER THE LAW FOR  INDIVIDUAL  APARTMENT  IMPROVEMENTS.
 INSPECTIONS  SHALL  INCLUDE  IN-PERSON CONFIRMATION  THAT  SUCH IMPROVE-
 MENTS HAVE BEEN COMPLETED IN SUCH WAY AS DESCRIBED IN THE  NOTIFICATION.
 IN  THE  EVENT  AN  AUDIT FINDS THAT THE  RECOVERABLE  COSTS CLAIMED  BY
 THE LANDLORD CANNOT BE SUBSTANTIATED, THE RESULTING OVERCHARGE SHALL  BE
 CONSIDERED TO BE WILLFUL.
   4.  IF  THE OWNER IS FOUND TO HAVE WILLFULLY OVERCHARGED A TENANT AS A
 RESULT OF THE CONCLUSION OF AN AUDIT  PURSUANT  TO  SUBDIVISION  TWO  OR
 THREE  OF  THIS SECTION, THE DIVISION SHALL CONDUCT ADDITIONAL AUDITS OF
 ALL HOUSING ACCOMMODATIONS UNDER THEIR  OWNERSHIP  IN  ADDITION  TO  THE
 PENALTIES PRESCRIBED BY THIS CHAPTER.
   §  3.   Subdivision a of section 12 of section 4 of chapter 576 of the
 laws of 1974, constituting the emergency tenant protection act of  nine-
 teen  seventy-four,  is amended by adding a new paragraph 1-a to read as
 follows:
   (1-A) IF THE OWNER IS FOUND TO HAVE WILLFULLY OVERCHARGED A TENANT  AS
 A RESULT OF THE CONCLUSION OF AN AUDIT CONDUCTED PURSUANT TO SUBDIVISION
 (B)  OR  (C)  OF  SECTION  TEN-B OF THIS ACT, THE DIVISION SHALL CONDUCT
 ADDITIONAL AUDITS OF ALL RENT REGULATED UNITS UNDER THEIR  OWNERSHIP  IN
 ADDITION TO THE PENALTIES PRESCRIBED BY THIS SECTION.
   § 4. This act shall take effect immediately.