S T A T E O F N E W Y O R K
________________________________________________________________________
8046--A
2025-2026 Regular Sessions
I N S E N A T E
May 15, 2025
___________
Introduced by Sen. BYNOE -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13107-02-5
S. 8046--A 2
the total amount to be removed from the legal regulated rent inclusive
of any increases granted by the applicable rent guidelines board.
§ 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.
