Senate Bill S8046A

                             
                     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.