S T A T E O F N E W Y O R K
________________________________________________________________________
6904
2025-2026 Regular Sessions
I N S E N A T E
March 26, 2025
___________
Introduced by Sens. COMRIE, FERNANDEZ, SEPULVEDA, ADDABBO, MARTINEZ,
PARKER, PERSAUD, SCARCELLA-SPANTON -- 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 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
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:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05862-01-5
S. 6904 2
§ 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:
(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
S. 6904 3
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
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
S. 6904 4
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
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
S. 6904 5
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
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.
S. 6904 6
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.
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
S. 6904 7
(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 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 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
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;
S. 6904 8
(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.
