Senate Bill S869

2025-2026 Legislative Session

Prohibits the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement

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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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to housing, construction and community development

co-Sponsors

2025-S869 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L; amd §§26-512 & 26-405, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5945
2019-2020: S2180
2021-2022: S3341
2023-2024: S1101

2025-S869 (ACTIVE) - Summary

Prohibits the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement.

2025-S869 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S869

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the emergency tenant protection act of nineteen seven-
ty-four, the administrative code of the city of New York and the emer-
gency housing rent control law, in relation to prohibiting the
collection of rent arrearages accruing prior to the date of approval of
an application for an adjustment in the legal regulated rent based upon
a major capital improvement

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill prohibits the temporary retroactive rent increase or surcharge
prior to the approval of the MCI application for rent stabilized apart-
ments. Under current law, landlords are entitled to collect a retroac-
tive surcharge, which is the amount owed between the effective date and
the collectable date of the DHCR order granting the MCI. If the applica-
tion is approved, in addition to the increase becoming a part of the
tenants' base rent, the landlord is entitled to collect the increase
retroactively, between the "effective date" and "collectable date," in
the form of a temporary surcharge. The rent increase (the surcharge and

the base rent increase) cannot be collected from the tenants until the
application is approved, so the surcharge is collected temporarily in
addition to the increased base rent after the collectable date. This
bill would bring rent stabilized apartments in line with rent-controlled
apartments, eliminating the retroactive temporary surcharge and allowing
landlords to begin collecting the increased base rent upon the collecta-
ble date or the date the application is approved.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 6 of section 4 of chapter 576 of the laws of
1974 by adding a new subdivision prohibiting any adjustment in the legal
regulated rent based upon a major capital improvement until the date of
approval of the application.

Section 2 amends the administrative code of the city of New York by
adding a new subdivision prohibiting any adjustment in the legal regu-
lated rent based upon a major capital improvement until the date of
approval of the application.

Section 3 amends paragraph (a) of subdivision 4 of section 4 of chapter
274 of the laws of 1946 by prohibiting any adjustment in the legal regu-
lated rent based upon a major capital improvement until the date of
approval of the application.

Section 4 amends the administrative code of the city of New York by
adding a new subdivision prohibiting any adjustment in the legal regu-
lated rent based upon a major capital improvement until the date of
approval of the application.

Section 5 establishes the effective date.

 
JUSTIFICATION:

Under current law, in addition to the cost of an MCI becoming part of
the tenants' base rent, the landlord is entitled to collect a temporary
retroactive surcharge, which is the amount owed between the effective
date and the collectable date of the DHCR order granting the MCI. This
bill will eliminate the undue burden created by the combined effect of
the permanence of the increase and the retroactive temporary surcharge
by eliminating the temporary surcharge. This will create consistency
between rent stabilized and rent controlled apartments, eliminating the
retroactive temporary surcharge and allowing landlords to begin collect-
ing the increased base rent upon the collectable date or the date the
application is approved.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: Referred to Housing, Construction and Community Development

2021-22: Referred to Housing, Construction and Community Development

2023-24: Referred to Housing, Construction and Community Development

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately, with provisions.

2025-S869 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    869
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by Sens. BAILEY, MAYER, SEPULVEDA, SERRANO -- 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 seven-
   ty-four, the administrative code of the city of New York and the emer-
   gency housing  rent  control  law,  in  relation  to  prohibiting  the
   collection  of  rent arrearages accruing prior to the date of approval
   of an application for an adjustment in the legal regulated rent  based
   upon a major capital improvement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 6 of section 4 of chapter 576 of the laws  of  1974
 constituting  the  emergency  tenant protection act of nineteen seventy-
 four is amended by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION  TO  THE
 CONTRARY,  ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A MAJOR
 CAPITAL IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION
 THEREFOR.  NO  INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO
 THE DATE OF APPROVAL OF THE APPLICATION.
   § 2. Section 26-512 of the administrative code of the city of New York
 is amended by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION  TO  THE
 CONTRARY,  ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A MAJOR
 CAPITAL IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION
 THEREFOR.  NO  INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO
 THE DATE OF APPROVAL OF THE APPLICATION.
   § 3. Subparagraph 10 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02107-01-5

 S. 869                              2
 
 section 25 of part B of chapter 97 of the laws of 2011, is amended and a
 new subparagraph 11 is added to read as follows:
   (10)    the  presence  of  unique or peculiar circumstances materially
 affecting the maximum rent has resulted  in  a  maximum  rent  which  is
 substantially lower than the rents generally prevailing in the same area
 for  substantially  similar  housing accommodations[.]; OR (11) NOTWITH-
 STANDING ANY PROVISION OF LAW OR RULE OR REGULATION TO THE CONTRARY, ANY
 ADJUSTMENT IN THE LEGAL  REGULATED  RENT  BASED  UPON  A  MAJOR  CAPITAL
 IMPROVEMENT  SHALL  BE EFFECTIVE UPON APPROVAL OF THE APPLICATION THERE-
 FOR. NO INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME  PRIOR  TO  THE
 DATE OF APPROVAL OF THE APPLICATION.
   § 4. Paragraph 1 of subdivision g of section 26-405 of the administra-
 tive  code  of  the city of New York is amended by adding a new subpara-
 graph (p) to read as follows:
   (P) NOTWITHSTANDING ANY PROVISION OF LAW OR RULE OR REGULATION TO  THE
 CONTRARY,  ANY ADJUSTMENT IN THE LEGAL REGULATED RENT BASED UPON A MAJOR
 CAPITAL IMPROVEMENT SHALL BE EFFECTIVE UPON APPROVAL OF THE  APPLICATION
 THEREFOR.  NO  INCREASE MAY BE COLLECTED FOR THE PERIOD OF TIME PRIOR TO
 THE DATE OF APPROVAL OF THE APPLICATION.
   § 5. This act shall take effect immediately; provided that:
   a. the amendments to section 26-512 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; and
   b. the amendments to section 26-405 of the  city  rent  and  rehabili-
 tation  law  made by section four 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.

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Senate Bill S869

Sponsored By

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

Actions

co-Sponsors

2025-S869 (ACTIVE) - Details

2025-S869 (ACTIVE) - Summary

2025-S869 (ACTIVE) - Sponsor Memo

2025-S869 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jamaal T. Bailey

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

Actions

co-Sponsors

Shelley B. Mayer

Luis R. Sepúlveda

Jose M. Serrano

2025-S869 (ACTIVE) - Details

2025-S869 (ACTIVE) - Summary

2025-S869 (ACTIVE) - Sponsor Memo

2025-S869 (ACTIVE) - Bill Text download pdf

Comments