NY State Senate Bill 2025-S8046A

Senate Bill S8046A

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 Assembly 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 11, 2025	referred to housing delivered to assembly passed senate ordered to third reading cal.1851 committee discharged and committed to rules
Jun 05, 2025	print number 8046a
Jun 05, 2025	amend (t) and recommit to housing, construction and community development
May 15, 2025	referred to housing, construction and community development

Votes

- Jun 11, 2025 - Floor Vote
  S8046A
  
  45
  
  Aye
  
  14
  
  Nay
  
  0
  
  Absent
  
  4
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 11, 2025
      
      aye (45)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Baskin
      
      Brisport
      
      Bynoe
      
      Cleare
      
      Comrie
      
      Cooney
      
      Fahy
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Liu
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Oberacker
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Webb
      
      nay (14)
      
      Borrello
      
      Canzoneri-Fitzpatrick
      
      Chan
      
      Griffo
      
      Helming
      
      Lanza
      
      O'Mara
      
      Ortt
      
      Palumbo
      
      Stec
      
      Tedisco
      
      Walczyk
      
      Weber
      
      Weik
      
      excused (4)
      
      Brouk
      
      Murray
      
      Myrie
      
      Sutton
  Jun 11, 2025 - Rules Committee Vote
  S8046A
  
  14
  
  Aye
  
  0
  
  Nay
  
  6
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 11, 2025
      
      aye (14)
      
      Addabbo Jr.
      
      Bailey
      
      Comrie
      
      Fernandez
      
      Gianaris
      
      Harckham
      
      Hoylman-Sigal
      
      Krueger
      
      Liu
      
      Mayer
      
      Ortt
      
      Parker
      
      Sepúlveda
      
      Stewart-Cousins
      
      aye wr (6)
      
      Gallivan
      
      Griffo
      
      Helming
      
      Lanza
      
      O'Mara
      
      Stec
      
      excused (1)
      
      Myrie

Bill Amendments

Original

A (Active)

2025-S8046 - Details

See Assembly Version of this Bill:: A8898
Current Committee:: Assembly Housing
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §§10-b & 12, Emerg Ten Prot Act of 1974; amd §8-a, Emerg Hous Rent Cont L

2025-S8046 - 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 - 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 - 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.

2025-S8046A (ACTIVE) - Details

See Assembly Version of this Bill:: A8898
Current Committee:: Assembly Housing
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §§10-b & 12, Emerg Ten Prot Act of 1974; amd §8-a, Emerg Hous Rent Cont L

2025-S8046A (ACTIVE) - Summary

2025-S8046A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8046A

SPONSOR: BYNOE
 
TITLE OF BILL:

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

 
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 chap-
ter 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-S8046A (ACTIVE) - Bill Text download pdf

                             
                     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.

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