S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7571
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 22, 2025
                                ___________
 
 Introduced  by  Sen.  CLEARE -- 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, the
   emergency tenant protection act of nineteen seventy-four and the emer-
   gency housing rent control law, in relation to prohibiting the adjust-
   ment of maximum allowable rent where  any  modification,  increase  or
   improvement is made to accommodate the needs of a disabled tenant
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section
 26-405 of the administrative code of the city of New York, as amended by
 section 5 of part FF of chapter 56 of the laws of 2024,  is  amended  to
 read as follows:
   (e)  The  landlord  and  tenant  by mutual voluntary written agreement
 demonstrating informed  consent  agree  to  a  substantial  increase  or
 decrease  in  dwelling  space  or  a change in furniture, furnishings or
 equipment provided in the housing accommodations.  An  adjustment  under
 this subparagraph shall be equal to one-one hundred sixty-eighth, in the
 case  of  a building with thirty-five or fewer housing accommodations or
 one-one hundred eightieth in the case of a building with more than thir-
 ty-five housing accommodations where such adjustment takes effect on  or
 after  the effective date of [the] chapter THIRTY-SIX of the laws of two
 thousand nineteen [that amended this subparagraph], of the total  actual
 cost  incurred  by the landlord in providing such reasonable and verifi-
 able modification or increase in dwelling space, furniture, furnishings,
 or equipment, including the cost of installation but  excluding  finance
 charges  and any costs that exceed reasonable costs established by rules
 and regulations promulgated by the division  of  housing  and  community
 renewal.  Such rules and regulations shall include: (i) requirements for
 work to be done by licensed contractors and  prohibit  common  ownership
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05669-01-5
              

 S. 7571                             2
 
 between  the  landlord and the contractor or vendor; and (ii) a require-
 ment that the owner resolve within the dwelling  space  all  outstanding
 hazardous  or  immediately  hazardous  violations  of  the  Uniform Fire
 Prevention and Building Code (Uniform Code), New York City Fire Code, or
 New  York  City  Building  and Housing Maintenance Codes, if applicable.
 Provided further that an owner who is entitled to a rent increase pursu-
 ant to this subparagraph  shall  not  be  entitled  to  a  further  rent
 increase based upon the installation of similar equipment, or new furni-
 ture or furnishings within the useful life of such new equipment, or new
 furniture  or  furnishings.  Provided further that the recoverable costs
 incurred by the landlord, pursuant to this subparagraph shall be limited
 to an aggregate cost of thirty thousand dollars in a fifteen year period
 beginning with the first individual apartment improvement  on  or  after
 June  fourteenth,  two  thousand  nineteen. The owner shall give written
 notice to the city rent agency of any such adjustment pursuant  to  this
 subparagraph;  PROVIDED,  HOWEVER, AN OWNER SHALL NOT BE ENTITLED TO ANY
 ADJUSTMENT PURSUANT TO  THIS  SUBPARAGRAPH  WHERE  ANY  MODIFICATION  OR
 INCREASE  IN  DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIP-
 MENT IS MADE TO ACCOMMODATE THE NEEDS OF A DISABLED TENANT. FOR PURPOSES
 OF THIS SUBPARAGRAPH, "DISABLED" MEANS AN INDIVIDUAL (I) WITH A PHYSICAL
 OR MENTAL IMPAIRMENT, INCLUDING, BUT NOT LIMITED TO, THOSE OF NEUROLOGI-
 CAL, EMOTIONAL OR SENSORY ORGANS, WHICH SUBSTANTIALLY LIMITS ONE OR MORE
 OF THE INDIVIDUAL'S MAJOR LIFE ACTIVITIES, AND (II) WHO IS  REGARDED  AS
 HAVING  SUCH  AN IMPAIRMENT AS CERTIFIED BY A LICENSED PHYSICIAN OF THIS
 STATE; or
   § 2. Paragraph 13 of subdivision c of section 26-511 of  the  adminis-
 trative code of the city of New York, as amended by section 3 of part FF
 of chapter 56 of the laws of 2024, is amended to read as follows:
   (13) provides that an owner is entitled to a rent increase where there
 has  been  a  substantial modification or increase of dwelling space, or
 installation of new  equipment  or  improvements  or  new  furniture  or
 furnishings provided in or to a tenant's housing accommodation, on writ-
 ten  informed  tenant  consent  to  the  rent increase. In the case of a
 vacant housing accommodation, tenant  consent  shall  not  be  required.
 Except  as  provided  in subparagraph (B) of this paragraph, increase in
 the legal regulated rent for the affected housing accommodation shall be
 one-one hundred sixty-eighth, in the case of a building with thirty-five
 or fewer housing accommodations or one-one hundred eightieth in the case
 of a building with more than thirty-five  housing  accommodations  where
 such increase takes effect on or after the effective date of [the] chap-
 ter  THIRTY-SIX  of the laws of two thousand nineteen [that amended this
 paragraph], of the total actual cost incurred by the landlord in provid-
 ing such reasonable and verifiable modification or increase in  dwelling
 space,  furniture,  furnishings,  or  equipment,  including  the cost of
 installation but excluding finance charges and  any  costs  that  exceed
 reasonable costs established by rules and regulations promulgated by the
 division  of  housing  and community renewal. Such rules and regulations
 shall include:   (i) requirements  for  work  to  be  done  by  licensed
 contractors  and  prohibit common ownership between the landlord and the
 contractor or vendor; and (ii) a  requirement  that  the  owner  resolve
 within  the  dwelling  space  all  outstanding  hazardous or immediately
 hazardous violations of the Uniform Fire Prevention  and  Building  Code
 (Uniform  Code),  New York City Fire Code, or New York City Building and
 Housing Maintenance Codes, if applicable. Provided further that an owner
 who is entitled to a rent increase pursuant to this paragraph shall  not
 be  entitled  to  a further rent increase based upon the installation of
 S. 7571                             3
 
 similar equipment, or new furniture or  furnishings  within  the  useful
 life  of  such  new equipment, or new furniture or furnishings. Provided
 further that the recoverable costs incurred by the landlord, pursuant to
 this  paragraph,  shall be limited to an aggregate cost of an amount set
 forth in this paragraph beginning with the  first  individual  apartment
 improvement on or after June fourteenth, two thousand nineteen. Provided
 further  that  increases  to  the  legal regulated rent pursuant to this
 paragraph shall be limited to an aggregate cost pursuant to the  follow-
 ing:
   (A)  thirty  thousand  dollars  that may be expended in a fifteen-year
 period beginning with the first individual apartment improvement  on  or
 after June fourteenth, two thousand nineteen, provided further that:
   (1) if there is a tenant in place at the time the individual apartment
 improvement  is  undertaken,  no costs incurred by the landlord shall be
 recoverable pursuant to this subparagraph unless  the  landlord  obtains
 written tenant consent from the tenant in place at the time the individ-
 ual apartment improvement was undertaken;
   (2)  increases  to  the legal regulated rent pursuant to this subpara-
 graph shall be permanent; and
   (3) the thirty thousand dollars may be expended, in the aggregate,  on
 any  number  of separate individual apartment improvements in a fifteen-
 year period, but in no event shall costs above thirty  thousand  dollars
 be recoverable in a fifteen-year period pursuant to this subparagraph.
   (B)  fifty  thousand  dollars  that  may be expended in a fifteen-year
 period beginning with the first individual apartment improvement  on  or
 after  June  fourteenth,  two thousand nineteen, pursuant to regulation,
 operational bulletin or such other guidance as the division  of  housing
 and community renewal may issue, provided further that:
   (1)  costs  shall  only  be recoverable by a landlord pursuant to this
 subparagraph for an individual apartment improvement undertaken during a
 vacancy;
   (2) costs shall only be recoverable by a  landlord  pursuant  to  this
 subparagraph  for  an individual apartment improvement if (i) the apart-
 ment was timely registered as vacant by no later than  the  thirty-first
 of  December  in  each  of two thousand twenty-two, two thousand twenty-
 three, and [two-thousand] TWO  THOUSAND  twenty-four,  provided  that  a
 landlord  may  recover costs on this basis no more than once, or (ii) if
 the apartment is vacant following a period of continuous occupancy of at
 least twenty-five years that occurred immediately prior to the commence-
 ment of such individual apartment improvement;
   (3) costs shall only be recoverable by a  landlord  pursuant  to  this
 subparagraph  if  such  landlord  has  received  prior  certification to
 recover costs pursuant to this subparagraph from the division of housing
 and community renewal based on establishing that the landlord  satisfies
 one of the eligibility criteria delineated in clause two of this subpar-
 agraph,  provided further that such certification shall not be deemed as
 evidence that the work performed or costs  claimed  for  the  individual
 apartment improvement was substantiated or to otherwise act as a defense
 in any subsequent rent overcharge proceeding, determination, or audit;
   (4)  increases  to  the legal regulated rent pursuant to this subpara-
 graph shall be permanent;
   (5) the increase in the legal regulated rent for the affected  housing
 accommodation  shall  be  one-one hundred forty-fourth, in the case of a
 building with thirty-five or fewer  housing  accommodations  or  one-one
 hundred fifty-sixth in the case of a building with more than thirty-five
 housing  accommodations where such increase takes effect on or after the
 S. 7571                             4

 effective date of this chapter, of the total actual cost incurred by the
 landlord up to fifty thousand dollars in providing such  reasonable  and
 verifiable  modification  or  increase  in  dwelling  space,  furniture,
 furnishings,  or  equipment,  including  the  cost  of  installation but
 excluding finance charges and any costs  that  exceed  reasonable  costs
 established  by  rules  and  regulations  promulgated by the division of
 housing and community renewal;
   (6) costs shall only be recoverable by a  landlord  pursuant  to  this
 subparagraph  for  an  individual  apartment improvement if, immediately
 prior to undertaking such individual apartment improvement, the landlord
 submits to the division of housing and community  renewal  any  evidence
 that  the  division of housing and community renewal deems necessary and
 requests pursuant to regulation, operational bulletin or other guidance,
 demonstrating that the improvement was necessitated  by  a  sub-standard
 condition  or  exceeding  its useful life immediately prior to the land-
 lord's work to improve the unit  and  the  landlord's  planned  work  to
 improve  the unit. Such evidence shall include, but shall not be limited
 to, photos of any areas, aspects or appliances  in  the  apartment  that
 will  be  improved,  and any necessary permits required to undertake the
 improvements;
   (7) costs shall only be recoverable by a  landlord  pursuant  to  this
 subparagraph  for  an  individual  apartment improvement if, immediately
 subsequent to undertaking  the  individual  apartment  improvement,  the
 landlord  submits  to  the division of housing and community renewal any
 evidence that the division of housing and community renewal deems neces-
 sary and requests pursuant to regulation, operational bulletin or  other
 guidance,  evidence  of the completed work. Such evidence shall include,
 but shall not be limited to, photographs of the completed work, itemized
 receipts for all parts, materials,  appliances,  and  labor  costs,  and
 proof of payment. Provided further, the division of housing and communi-
 ty renewal shall require the payment of a fee that equals one percent of
 the  amount claimed for the individual apartment improvement at the time
 of such filing;
   (8) for costs recoverable pursuant to item (ii) of clause two of  this
 subparagraph,  the fifty thousand dollars may be expended, in the aggre-
 gate, on any number of separate individual apartment improvements  in  a
 fifteen-year  period,  but  in no event shall costs above fifty thousand
 dollars be recoverable in a fifteen-year period pursuant to this subpar-
 agraph;
   (9) the division of housing and community renewal may perform an audit
 of any individual  apartment  improvement  conducted  pursuant  to  this
 subparagraph  to  determine whether the individual apartment improvement
 was undertaken in the manner described and to the extent claimed by  the
 landlord,  whether  the costs claimed were substantiated by records, and
 whether the rent was properly adjusted. Such audit  may  incorporate  an
 inspection  of  the  accommodation  at  bar. The landlord and the tenant
 living in the accommodation may participate in such audit. In the  event
 the  audit  finds  that  the  recoverable  costs claimed by the landlord
 cannot be substantiated, the resulting overcharge shall be considered to
 be willful. In addition, the division of housing and  community  renewal
 may issue any fines or penalties set forth in regulations;
   (10)  the  division  of  housing  and  community renewal shall perform
 random on-site inspections, as it deems  necessary,  for  any  unit  for
 which  the  owner  seeks to recover costs pursuant to this subparagraph;
 and
 S. 7571                             5
 
   (11) no owner shall be eligible for the rent increase based  on  indi-
 vidual  apartment  improvements pursuant to this subparagraph if, within
 the five-year period prior to filing such individual apartment  improve-
 ment, any unit within any building owned by any owner of the building in
 which  the  unit  for  which  the  owner  seeks  an individual apartment
 improvement is located, including but not limited to partial or  benefi-
 cial  owners,  has  been the subject of an award or determination by the
 division of housing and community renewal or a court of competent juris-
 diction for treble damages due to an overcharge  or  the  owner  of  the
 building  in  which the unit is located has been the subject of an award
 or determination by the division of housing and community renewal  or  a
 court  of competent jurisdiction for harassment of any tenants, provided
 that such owner shall  provide  an  affidavit  confirming  such  owner's
 eligibility  under  this clause to the division of housing and community
 renewal at the same time as, and in addition to, any other materials the
 division of housing and community renewal  shall  require  an  owner  to
 submit pursuant to clause six of this subparagraph, and provided further
 that  such  affidavit  shall  not be deemed to be evidence of compliance
 with this clause or a defense in any subsequent rent overcharge proceed-
 ing, determination, or audit.
   PROVIDED, HOWEVER, AN OWNER SHALL NOT BE ENTITLED TO ANY RENT INCREASE
 PURSUANT TO THIS PARAGRAPH WHERE ANY MODIFICATION, INCREASE OR  IMPROVE-
 MENT IN DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT IS
 MADE TO ACCOMMODATE THE NEEDS OF A DISABLED TENANT. FOR PURPOSES OF THIS
 PARAGRAPH,  "DISABLED" MEANS AN INDIVIDUAL (I) WITH A PHYSICAL OR MENTAL
 IMPAIRMENT, INCLUDING,  BUT  NOT  LIMITED  TO,  THOSE  OF  NEUROLOGICAL,
 EMOTIONAL  OR  SENSORY ORGANS, WHICH SUBSTANTIALLY LIMITS ONE OR MORE OF
 THE INDIVIDUAL'S MAJOR LIFE ACTIVITIES, AND  (II)  WHO  IS  REGARDED  AS
 HAVING  SUCH  AN IMPAIRMENT AS CERTIFIED BY A LICENSED PHYSICIAN OF THIS
 STATE.
   § 3. Paragraph 1 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 section 1 of part FF of
 chapter 56 of the laws of 2024, is amended to read as follows:
   (1) there has been a substantial modification or increase of  dwelling
 space, or installation of new equipment or improvements or new furniture
 or  furnishings,  provided in or to a tenant's housing accommodation, on
 written informed tenant consent to the rent increase. In the case  of  a
 vacant  housing  accommodation,  tenant  consent  shall not be required.
 Except as provided in subparagraph (B) of this paragraph,  the  increase
 in the legal regulated rent for the affected housing accommodation shall
 be  one-one hundred sixty-eighth, in the case of a building with thirty-
 five or fewer housing accommodations or one-one hundred eightieth in the
 case of a building with more  than  thirty-five  housing  accommodations
 where such increase takes effect on or after the effective date of [the]
 chapter  THIRTY-SIX  of  the laws of two thousand nineteen [that amended
 this paragraph], of the total actual cost incurred by the landlord up to
 an amount set forth in this paragraph in providing such  reasonable  and
 verifiable  modification  or  increase  in  dwelling  space,  furniture,
 furnishings, or  equipment,  including  the  cost  of  installation  but
 excluding  finance  charges  and  any costs that exceed reasonable costs
 established by rules and regulations  promulgated  by  the  division  of
 housing and community renewal. Such rules and regulations shall include:
 (i)  requirements  for  work  to  be  done by licensed contractors and a
 prohibition on common ownership between the landlord and the  contractor
 or  vendor;  and  (ii)  a  requirement that the owner resolve within the
 S. 7571                             6
 
 dwelling  space  all  outstanding  hazardous  or  immediately  hazardous
 violations  of  the  Uniform  Fire Prevention and Building Code (Uniform
 Code), New York City Fire Code, or New York City  Building  and  Housing
 Maintenance  Codes, if applicable. Provided further that an owner who is
 entitled to a rent increase pursuant to  this  paragraph  shall  not  be
 entitled to a further rent increase based upon the installation of simi-
 lar equipment, or new furniture or furnishings within the useful life of
 such  new  equipment,  or new furniture or furnishings. Provided further
 that the recoverable costs incurred by the landlord,  pursuant  to  this
 paragraph, shall be limited to an aggregate cost pursuant to the follow-
 ing:
   (A)  thirty  thousand  dollars  that may be expended in a fifteen-year
 period beginning with the first individual apartment improvement  on  or
 after June fourteenth, two thousand nineteen, provided further that:
   (1) if there is a tenant in place at the time the individual apartment
 improvement  is  undertaken,  no costs incurred by the landlord shall be
 recoverable pursuant to this subparagraph unless  the  landlord  obtains
 written tenant consent from the tenant in place at the time the individ-
 ual apartment improvement was undertaken;
   (2)  increases  to  the legal regulated rent pursuant to this subpara-
 graph shall be permanent; and
   (3) the thirty thousand dollars may be expended, in the aggregate,  on
 any  number  of separate individual apartment improvements in a fifteen-
 year period, but in no event shall costs above thirty  thousand  dollars
 be recoverable in a fifteen-year period pursuant to this subparagraph.
   (B)  fifty  thousand  dollars  that  may be expended in a fifteen-year
 period beginning with the first individual apartment improvement  on  or
 after  June  fourteenth,  two thousand nineteen, pursuant to regulation,
 operational bulletin or such other guidance as the division  of  housing
 and community renewal may issue, provided further that:
   (1)  costs  shall  only  be recoverable by a landlord pursuant to this
 subparagraph for an individual apartment improvement undertaken during a
 vacancy;
   (2) costs shall only be recoverable by a  landlord  pursuant  to  this
 subparagraph  for  an individual apartment improvement if (i) the apart-
 ment was timely registered as vacant by no later than  the  thirty-first
 of  December  in  each  of two thousand twenty-two, two thousand twenty-
 three, and two  thousand  twenty-four,  provided  that  a  landlord  may
 recover  costs on this basis no more than once, or (ii) if the apartment
 is vacant following a period of continuous occupancy of at  least  twen-
 ty-five  years  that  occurred  immediately prior to the commencement of
 such individual apartment improvement;
   (3) costs shall only be recoverable by a  landlord  pursuant  to  this
 subparagraph  if  such  landlord  has  received  prior  certification to
 recover costs pursuant to this subparagraph from the division of housing
 and community renewal based on establishing that the landlord  satisfies
 one of the eligibility criteria delineated in clause two of this subpar-
 agraph,  provided further that such certification shall not be deemed as
 evidence that the work performed or costs  claimed  for  the  individual
 apartment improvement was substantiated or to otherwise act as a defense
 in any subsequent rent overcharge proceeding, determination, or audit;
   (4)  increases  to  the legal regulated rent pursuant to this subpara-
 graph shall be permanent;
   (5) the increase in the legal regulated rent for the affected  housing
 accommodation  shall  be  one-one hundred forty-fourth, in the case of a
 building with thirty-five or fewer  housing  accommodations  or  one-one
 S. 7571                             7
 
 hundred fifty-sixth in the case of a building with more than thirty-five
 housing  accommodations where such increase takes effect on or after the
 effective date of the chapter of the laws of  two  thousand  twenty-four
 that  amended  this  paragraph, of the total actual cost incurred by the
 landlord up to fifty thousand dollars in providing such  reasonable  and
 verifiable  modification  or  increase  in  dwelling  space,  furniture,
 furnishings, or  equipment,  including  the  cost  of  installation  but
 excluding  finance  charges  and  any costs that exceed reasonable costs
 established by rules and regulations  promulgated  by  the  division  of
 housing and community renewal;
   (6)  costs  shall  only  be recoverable by a landlord pursuant to this
 subparagraph for an individual  apartment  improvement  if,  immediately
 prior to undertaking such individual apartment improvement, the landlord
 submits  to  the  division of housing and community renewal any evidence
 that the division of housing and community renewal deems  necessary  and
 requests pursuant to regulation, operational bulletin or other guidance,
 demonstrating  that  the  improvement was necessitated by a sub-standard
 condition or exceeding its useful life immediately prior  to  the  land-
 lord's  work  to  improve  the  unit  and the landlord's planned work to
 improve the unit. Such evidence shall include, but shall not be  limited
 to,  photos  of  any  areas, aspects or appliances in the apartment that
 will be improved, and any necessary permits required  to  undertake  the
 improvements;
   (7)  costs  shall  only  be recoverable by a landlord pursuant to this
 subparagraph for an individual  apartment  improvement  if,  immediately
 subsequent  to  undertaking  the  individual  apartment improvement, the
 landlord submits to the division of housing and  community  renewal  any
 evidence that the division of housing and community renewal deems neces-
 sary  and requests pursuant to regulation, operational bulletin or other
 guidance, evidence of the completed work. Such evidence  shall  include,
 but shall not be limited to, photographs of the completed work, itemized
 receipts  for  all  parts,  materials,  appliances, and labor costs, and
 proof of payment. Provided further, the division of housing and communi-
 ty renewal shall require the payment of a fee that equals one percent of
 the amount claimed for the individual apartment improvement at the  time
 of such filing;
   (8)  for costs recoverable pursuant to item (ii) of clause two of this
 subparagraph, the fifty thousand dollars may be expended, in the  aggre-
 gate,  on  any number of separate individual apartment improvements in a
 fifteen-year period, but in no event shall costs  above  fifty  thousand
 dollars be recoverable in a fifteen-year period pursuant to this subpar-
 agraph;
   (9) the division of housing and community renewal may perform an audit
 of  any  individual  apartment  improvement  conducted  pursuant to this
 subparagraph to determine whether the individual  apartment  improvement
 was  undertaken in the manner described and to the extent claimed by the
 landlord, whether the costs claimed were substantiated by  records,  and
 whether  the  rent  was properly adjusted. Such audit may incorporate an
 inspection of the accommodation at bar.  The  landlord  and  the  tenant
 living  in the accommodation may participate in such audit. In the event
 the audit finds that the  recoverable  costs  claimed  by  the  landlord
 cannot be substantiated, the resulting overcharge shall be considered to
 be  willful.  In addition, the division of housing and community renewal
 may issue any fines or penalties set forth in regulations;
   (10) the division of  housing  and  community  renewal  shall  perform
 random  on-site  inspections,  as  it  deems necessary, for any unit for
 S. 7571                             8
 
 which the owner seeks to recover costs pursuant  to  this  subparagraph;
 and
   (11)  no  owner shall be eligible for the rent increase based on indi-
 vidual apartment improvements pursuant to this subparagraph  if,  within
 the  five year period prior to filing such individual apartment improve-
 ment, any unit within any building owned by any owner of the building in
 which the unit  for  which  the  owner  seeks  an  individual  apartment
 improvement  is located, including but not limited to partial or benefi-
 cial owners, has been the subject of an award or  determination  by  the
 division of housing and community renewal or a court of competent juris-
 diction  for  treble  damages  due  to an overcharge or the owner of the
 building in which the unit is located has been the subject of  an  award
 or  determination  by the division of housing and community renewal or a
 court of competent jurisdiction for harassment of any tenants,  provided
 that  such  owner  shall  provide  an  affidavit confirming such owner's
 eligibility under this clause to the division of housing  and  community
 renewal at the same time as, and in addition to, any other materials the
 division  of  housing  and  community  renewal shall require an owner to
 submit pursuant to clause six of this subparagraph, and provided further
 that such affidavit shall not be deemed to  be  evidence  of  compliance
 with this clause or a defense in any subsequent rent overcharge proceed-
 ing, determination, or audit.
   PROVIDED, HOWEVER, AN OWNER SHALL NOT BE ENTITLED TO ANY RENT INCREASE
 PURSUANT TO THIS PARAGRAPH WHERE ANY MODIFICATION, INCREASE  OR IMPROVE-
 MENT IN DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT IS
 MADE TO ACCOMMODATE THE NEEDS OF A DISABLED TENANT. FOR PURPOSES OF THIS
 PARAGRAPH,  "DISABLED" MEANS AN INDIVIDUAL (I) WITH A PHYSICAL OR MENTAL
 IMPAIRMENT, INCLUDING,  BUT  NOT  LIMITED  TO,  THOSE  OF  NEUROLOGICAL,
 EMOTIONAL  OR SENSORY ORGANS, WHICH  SUBSTANTIALLY LIMITS ONE OR MORE OF
 THE INDIVIDUAL'S MAJOR LIFE ACTIVITIES, AND  (II)  WHO  IS  REGARDED  AS
 HAVING  SUCH  AN IMPAIRMENT AS CERTIFIED BY A LICENSED PHYSICIAN OF THIS
 STATE.
   § 4. Subparagraph 5 of the second undesignated paragraph of  paragraph
 (a)  of  subdivision  4 of section 4 of chapter 274 of the laws of 1946,
 constituting the emergency housing  rent  control  law,  as  amended  by
 section  7  of  part FF of chapter 56 of the laws of 2024, is amended to
 read as follows:
   (5) the landlord and  tenant  by  mutual  voluntary  written  informed
 agreement agree to a substantial increase or decrease in dwelling space,
 furniture,  furnishings  or  equipment  provided in the housing accommo-
 dations; provided that an owner shall be entitled  to  a  rent  increase
 where  there has been a substantial modification or increase of dwelling
 space, or installation of new equipment or improvements or new furniture
 or furnishings provided in or to a tenant's housing  accommodation.  The
 increase  in  the  maximum  rent  for the affected housing accommodation
 shall be one-one hundred sixty-eighth, in the case of  a  building  with
 thirty-five  or  fewer housing accommodations, or one-one hundred eight-
 ieth, in the case of a  building  with  more  than  thirty-five  housing
 accommodations  where  such increase takes effect on or after the effec-
 tive date of [the] chapter THIRTY-NINE of the laws of two thousand nine-
 teen [that amended this subparagraph], of the total actual cost incurred
 by the landlord up to thirty thousand dollars in providing such  reason-
 able  and  verifiable modification or increase in dwelling space, furni-
 ture, furnishings, or equipment, including the cost of installation  but
 excluding  finance  charges  and  any costs that exceed reasonable costs
 established by rules and regulations  promulgated  by  the  division  of
 S. 7571                             9

 housing and community renewal. Such rules and regulations shall include:
 (i)  requirements  for  work  to  be  done by licensed contractors and a
 prohibition on common ownership between the landlord and the  contractor
 or  vendor;  and  (ii)  a  requirement that the owner resolve within the
 dwelling  space  all  outstanding  hazardous  or  immediately  hazardous
 violations  of  the  uniform  fire prevention and building code (Uniform
 Code), New York city fire code, or New York city  building  and  housing
 maintenance  codes, if applicable. Provided further that an owner who is
 entitled to a rent increase pursuant to this clause shall not  be  enti-
 tled  to  a further rent increase based upon the installation of similar
 equipment, or new furniture or furnishings within  the  useful  life  of
 such  new  equipment,  or new furniture or furnishings. Provided further
 that the recoverable costs incurred by the landlord,  pursuant  to  this
 subparagraph,  shall  be limited to an aggregate cost of thirty thousand
 dollars in a fifteen year period beginning  with  the  first  individual
 apartment  improvement  on  or after June fourteenth, two thousand nine-
 teen.  The owner shall give written notice to the commission of any such
 adjustment pursuant to this clause; PROVIDED, HOWEVER,  AN  OWNER  SHALL
 NOT  BE  ENTITLED  TO  ANY  ADJUSTMENT PURSUANT TO THIS CLAUSE WHERE ANY
 MODIFICATION, IMPROVEMENT OR INCREASE  IN  DWELLING    SPACE,  SERVICES,
 FURNITURE, FURNISHINGS OR EQUIPMENT IS MADE TO ACCOMMODATE THE NEEDS  OF
 A  DISABLED  TENANT.  FOR  PURPOSES  OF THIS CLAUSE, "DISABLED" MEANS AN
 INDIVIDUAL (I) WITH A PHYSICAL OR MENTAL IMPAIRMENT, INCLUDING, BUT  NOT
 LIMITED    TO, THOSE OF NEUROLOGICAL, EMOTIONAL OR SENSORY ORGANS, WHICH
 SUBSTANTIALLY LIMITS ONE OR MORE OF THE INDIVIDUAL'S MAJOR  LIFE  ACTIV-
 ITIES,  AND  (II) WHO IS REGARDED AS HAVING SUCH AN IMPAIRMENT AS CERTI-
 FIED BY A LICENSED PHYSICIAN OF THIS STATE; or
   § 5. This act shall take effect immediately; provided that:
   (a) the amendments to section 26-405 of the city  rent  and  rehabili-
 tation  law  made  by section one of this act shall remain in full force
 and effect only as long as the public emergency requiring the regulation
 and control of residential rents and evictions continues, as provided in
 subdivision 3 of section 1 of the local emergency housing  rent  control
 act; and
   (b)  the amendments made to section 26-511 of chapter 4 of title 26 of
 the administrative code of the city of New York made by section  two  of
 this act shall expire on the same date as such law expires and shall not
 affect  the  expiration  of such law as provided under section 26-520 of
 such law.