NY State Senate Bill 2025-S8046

Senate Bill S8046

2025-2026 Legislative Session

Relates to audit of individual apartment improvements (IAIs) for rent stabilized apartments outside of the city of New York

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 15, 2025	referred to housing, construction and community development

2025-S8046 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §§10-b & 12, Emerg Ten Prot Act of 1974

2025-S8046 (ACTIVE) - Summary

Requires an annual inspection and audit process which shall review five percent of individual apartment improvement notifications for rent stabilized apartments outside of the city of New York; requires additional audits where violations are found.

2025-S8046 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8046

SPONSOR: BYNOE
 
TITLE OF BILL:

An act to amend the emergency  tenant protection act of  nineteen
seventy-four, in relation to audits of individual  apartment  improve-
ments  in rent regulated units

 
PURPOSE:

Requires the Division of Housing and Community Renewal to establish an
audit of individual apartment improvements for rent stabilized units
outside of New York City.

 
SUMMARY OF PROVISIONS:

  Section  1.  Amends  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 park K
of  chapter 36 of the laws of 2019 to provide that the division of Hous-
ing and Community renewal shall establish an audit process to  review  5

percent  of  individual  apartment improvement notifications. Such audit
process shall include individual  inspections  and  document  review  to
ensure compliance with current law.

  Section  2. Amends subdivision a of section 12 of section 4 of chapter
576 of the laws of 1974, constituting the  emergency  tenant  protection
act of nineteen seventy-four by adding a new paragraph 1-a that provides
that  if an owner is found to have willfully overcharged a tenant in the
audit process for individual apartment improvements  and  major  capital
improvements,  then  that  owner shall be subject to audit for all other
rent stabilized units under their ownership.

  Section 3. Effective Date.

 
JUSTIFICATION:

The Housing Stability and Tenant Protection Act of  2019  mandated  that
the  Division  of Homes and Community Renewal (DHCR) audit 25% of tempo-
rary major capital improvement (MCI) rent increases to prevent  unjusti-
fied  rent hikes in rent-stabilized apartments. This bill builds on that
foundation by extending mandatory auditing to 5% of Individual Apartment
Improvements (IAIs) occurring outside of New York City.

This measure will enhance oversight and accountability in the IAI  proc-
ess, helping to ensure that improvements are legitimate and that tenants
are  not  subject  to unlawful or inflated rent increases.  Importantly,
the bill also establishes that if DHCR discovers a willful overcharge in
the course of an audit, it must initiate audits of all  other  buildings
owned by the same landlord.

Tenants  deserve equal protection from abuse, and targeted random audits
are a practical and effective tool to ensure compliance with the law.

 
LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

To Be Determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S8046 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8046
 
                        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
 
 AN  ACT  to  amend  the  emergency   tenant protection act of   nineteen
   seventy-four, in relation to audits of individual  apartment  improve-
   ments  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 UNITS NOT  SUBJECT  TO  THE  NEW
 YORK  CITY  RENT  STABILIZATION  LAW  OF NINETEEN HUNDRED SIXTY-NINE, 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-PERSON
 CONFIRMATION  THAT  SUCH IMPROVEMENTS HAVE BEEN COMPLETED IN SUCH WAY AS
 DESCRIBED IN THE NOTIFICATION.
   (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.
   §  2.  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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13107-01-5

 S. 8046                             2
 
   (1-A) IF THE OWNER IS FOUND BY  THE  COMMISSIONER  TO  HAVE  WILLFULLY
 OVERCHARGED  IN  ASSOCIATION WITH AN INDIVIDUAL APARTMENT IMPROVEMENT OR
 MAJOR CAPITAL IMPROVEMENT AS A RESULT OF  THE  CONCLUSION  OF  AN  AUDIT
 PURSUANT  TO  SUBDIVISION (C) OF SECTION TEN-B OF THIS ACT, THE DIVISION
 SHALL CONDUCT ADDITIONAL AUDITS OF ALL RENT STABILIZED UNITS UNDER THEIR
 OWNERSHIP IN ADDITION TO THE PENALTIES PRESCRIBED BY THIS SECTION.
   § 3. This act shall take effect immediately.

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