Bill Text: NY A01628 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to adjustment of maximum allowable rent.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Engrossed - Dead) 2018-05-15 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [A01628 Detail]
Download: New_York-2017-A01628-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1628 2017-2018 Regular Sessions IN ASSEMBLY January 12, 2017 ___________ Introduced by M. of A. MOSLEY, DAVILA, WALKER, JOYNER, BICHOTTE, ARROYO, O'DONNELL -- read once and referred to the Committee on Housing AN ACT to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four and the emer- gency housing rent control law, in relation to adjustment of maximum allowable rent The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section 2 26-405 of the administrative code of the city of New York, as amended by 3 section 15 of part B of chapter 97 of the laws of 2011, is amended to 4 read as follows: 5 (e) The landlord and tenant by mutual voluntary written agreement 6 agree to a substantial increase or decrease in dwelling space or a 7 change in the services, furniture, furnishings or equipment provided in 8 the housing accommodations. An adjustment under this subparagraph shall 9 be equal to [one-fortieth, in the case of a building with thirty-five or10fewer housing accommodations, or one-sixtieth, in the case of a building11with more than thirty-five housing accommodations where such adjustment12takes effect on or after September twenty-fourth, two thousand eleven,] 13 one eighty-fourth of the total cost incurred by the landlord in provid- 14 ing such modification or increase in dwelling space, services, furni- 15 ture, furnishings or equipment, including the cost of installation, but 16 excluding finance charges and cosmetic improvements, provided further 17 that an owner who is entitled to a rent increase pursuant to this 18 subparagraph shall not be entitled to a further rent increase based upon 19 the installation of similar equipment, or new furniture or furnishings 20 within the useful life of such new equipment, or new furniture or 21 furnishings. The owner shall give written notice to the city rent agency 22 of any such adjustment pursuant to this subparagraph; or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01124-02-7A. 1628 2 1 § 2. Subdivision g of section 26-405 of the administrative code of the 2 city of New York is amended by adding a new paragraph 8 to read as 3 follows: 4 (8) (a) Within one hundred twenty days of the effective date of this 5 paragraph, the division of housing and community renewal shall issue a 6 schedule of reasonable costs for upgrades and improvements that may be 7 claimed as a basis for an adjustment of rent pursuant to subparagraph 8 (e) of paragraph one of this subdivision. The schedule of reasonable 9 costs shall exclude cosmetic improvements. The schedule of reasonable 10 costs shall be based on the average costs for similar upgrades or 11 improvements made to comparable properties located in each county, 12 subject to the provisions of this chapter, and shall be updated at least 13 once every two years. No increase in rent shall be collectible under 14 subparagraph (e) of paragraph one of this subdivision based upon costs 15 that exceed the reasonable costs set forth in the schedule, unless 16 approved by the division pursuant to subparagraph (b) of this paragraph. 17 (b) Within thirty days of the signing of a mutual voluntary written 18 agreement including a rent increase pursuant to subparagraph (e) of 19 paragraph one of this subdivision that includes improvements that exceed 20 the schedule of reasonable costs pursuant to subparagraph (a) of this 21 paragraph, the landlord will file with the division of housing and 22 community renewal an explanation of how the rent was computed, and all 23 documents necessary to support the collection of such increase, includ- 24 ing but not limited to, cancelled checks, invoices and signed contracts 25 contemporaneously with the improvements alleged and a statement that any 26 increase above the previous rent is in accordance with adjustments 27 permitted by law. Upon receipt of all documents submitted by the land- 28 lord, and after giving the tenant an opportunity to respond, the divi- 29 sion of housing and community renewal shall issue an order approving or 30 disapproving such increase in whole or in part. 31 (c) Within thirty days of the signing of a mutual voluntary written 32 agreement including a rent increase that exceeds ten percent of the 33 maximum collectible rent, the landlord will file with the division of 34 housing and community renewal an explanation of how the rent was 35 computed, and all documents necessary to support the collection of such 36 increase, including but not limited to, cancelled checks, invoices and 37 signed contracts contemporaneously with the improvements alleged and a 38 statement that any increase above the previous rent is in accordance 39 with adjustments permitted by law. Upon receipt of all documents 40 submitted by the owner, and after giving the tenant an opportunity to 41 respond, the division of housing and community renewal shall issue an 42 order approving or disapproving such increase in whole or in part. Based 43 upon such determination, the division of housing and community renewal 44 shall order a refund to the tenant equal to the amount collected in 45 excess of the rent approved by the division of housing and community 46 renewal. 47 (d) No increase in rent shall be collectible under subparagraph (e) of 48 paragraph one of this subdivision until: 49 (1) the landlord has provided the tenant with a written notice, 50 including an explanation of how the rent in the mutual voluntary written 51 agreement has been computed, and the specific amounts of all expendi- 52 tures supporting a rent increase under subparagraph (e) of paragraph one 53 of this subdivision; and 54 (2) the landlord has filed with the division of housing and community 55 renewal an explanation of how the rent was computed, and all documents 56 necessary to support the collection of such increase, including, but notA. 1628 3 1 limited to, cancelled checks, invoices and signed contracts entered into 2 contemporaneously with the improvements alleged, and a statement that 3 any increase above the previous rent is in accordance with adjustments 4 permitted by law. 5 (e) No increase shall be collectible under subparagraph (e) of para- 6 graph one of this subdivision where the division of housing and communi- 7 ty renewal has determined that the owner is not maintaining all build- 8 ing-wide required services or all required services with respect to the 9 affected housing accommodation, or where there are current or outstand- 10 ing hazardous violations of any municipal, county, state or federal law 11 which relate to the maintenance of such services. 12 § 3. Paragraph 13 of subdivision c of section 26-511 of the adminis- 13 trative code of the city of New York, as amended by section 16 of part B 14 of chapter 97 of the laws of 2011, is amended to read as follows: 15 (13) provides that an owner is entitled to a rent increase where there 16 has been a substantial modification or increase of dwelling space or an 17 increase in the services, or installation of new equipment or improve- 18 ments or new furniture or furnishings provided in or to a tenant's hous- 19 ing accommodation, on written tenant consent to the rent increase. In 20 the case of a vacant housing accommodation, tenant consent shall not be 21 required. 22 (a) The permanent increase in the legal regulated rent for the 23 affected housing accommodation shall be [one-fortieth, in the case of a24building with thirty-five or fewer housing accommodations, or one-sixti-25eth, in the case of a building with more than thirty-five housing accom-26modations where such permanent increase takes effect on or after Septem-27ber twenty-fourth, two thousand eleven,] one eighty-fourth of the total 28 cost incurred by the landlord in providing such modification or increase 29 in dwelling space, services, furniture, furnishings or equipment, 30 including the cost of installation, but excluding finance charges and 31 cosmetic improvements. 32 (b) Provided further that an owner who is entitled to a rent increase 33 pursuant to this paragraph shall not be entitled to a further rent 34 increase based upon the installation of similar equipment, or new furni- 35 ture or furnishings within the useful life of such new equipment, or new 36 furniture or furnishings. 37 § 4. Subdivision c of section 26-511 of the administrative code of the 38 city of New York is amended by adding a new paragraph 15 to read as 39 follows: 40 (15) (a) Within one hundred twenty days of the effective date of this 41 paragraph, the division of housing and community renewal shall issue a 42 schedule of reasonable costs for upgrades and improvements that may be 43 claimed as a basis for an adjustment of rent pursuant to paragraph thir- 44 teen of this subdivision. The schedule of reasonable costs shall 45 exclude cosmetic improvements. The schedule of reasonable costs shall 46 be based on the average costs for similar upgrades or improvements made 47 to comparable properties located in each county, subject to the 48 provisions of this chapter, and shall be updated at least once every two 49 years. No increase in rent shall be collectible under paragraph thirteen 50 of this subdivision based upon costs that exceed the reasonable costs 51 set forth in the schedule, unless approved by the division pursuant to 52 subparagraph (b) of this paragraph. 53 (b) Within thirty days of the signing of a vacancy lease including a 54 rent increase pursuant to paragraph thirteen of this subdivision that 55 includes improvements that exceed the schedule of reasonable costs 56 pursuant to subparagraph (a) of this paragraph, the landlord will fileA. 1628 4 1 with the division of housing and community renewal an explanation of how 2 the vacancy rent was computed, and all documents necessary to support 3 the collection of such increase, including but not limited to, cancelled 4 checks, invoices and signed contracts contemporaneously with the 5 improvements alleged and a statement that any increase above the previ- 6 ous rent is in accordance with adjustments permitted by law. Upon 7 receipt of all documents submitted by the landlord, and after giving the 8 tenant named in the vacancy lease an opportunity to respond, the divi- 9 sion of housing and community renewal shall issue an order approving or 10 disapproving such increase in whole or in part. 11 (c) Within thirty days of the signing of a vacancy lease including a 12 rent increase that exceeds ten percent of the rent charged to the previ- 13 ous tenant, the landlord will file with the division of housing and 14 community renewal an explanation of how the rent was computed, and all 15 documents necessary to support the collection of such increase, includ- 16 ing but not limited to, cancelled checks, invoices and signed contracts 17 contemporaneously with the improvements alleged and a statement that any 18 increase above the previous rent is in accordance with adjustments 19 permitted by law. Upon receipt of all documents submitted by the owner, 20 and after giving the tenant named in such vacancy lease an opportunity 21 to respond, the division of housing and community renewal shall issue an 22 order approving or disapproving such increase in whole or in part. Based 23 upon such determination, the division of housing and community renewal 24 shall order a refund to the tenant equal to the amount collected in 25 excess of the rent approved by the division of housing and community 26 renewal. 27 (d) No increase in rent shall be collectible under paragraph thirteen 28 of this subdivision until: 29 (i) the landlord has provided the tenant with a written notice, 30 including an explanation of how the rent in the vacancy lease has been 31 computed, and the specific amounts of all expenditures supporting a rent 32 increase under paragraph thirteen of this subdivision; and 33 (ii) the landlord has filed with the division of housing and community 34 renewal an explanation of how the vacancy rent was computed, and all 35 documents necessary to support the collection of such increase, includ- 36 ing, but not limited to, cancelled checks, invoices and signed contracts 37 entered into contemporaneously with the improvements alleged, and a 38 statement that any increase above the previous rent is in accordance 39 with adjustments permitted by law. 40 (e) No increase shall be collectible under paragraph thirteen of this 41 subdivision where the division of housing and community renewal has 42 determined that the owner is not maintaining all building-wide required 43 services or all required services with respect to the affected housing 44 accommodation, or where there are current or outstanding hazardous 45 violations of any municipal, county, state or federal law which relate 46 to the maintenance of such services. 47 § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter 48 576 of the laws of 1974, constituting the emergency tenant protection 49 act of nineteen seventy-four, as amended by section 18 of part B of 50 chapter 97 of the laws of 2011, is amended to read as follows: 51 (1) there has been a substantial modification or increase of dwelling 52 space or an increase in the services, or installation of new equipment 53 or improvements or new furniture or furnishings, provided in or to a 54 tenant's housing accommodation, on written tenant consent to the rent 55 increase. In the case of a vacant housing accommodation, tenant consent 56 shall not be required.A. 1628 5 1 (a) The permanent increase in the legal regulated rent for the 2 affected housing accommodation shall be [one-fortieth, in the case of a3building with thirty-five or fewer housing accommodations, or one-sixti-4eth, in the case of a building with more than thirty-five housing accom-5modations where such permanent increase takes effect on or after Septem-6ber twenty-fourth, two thousand eleven,] one eighty-fourth of the total 7 cost incurred by the landlord in providing such modification or increase 8 in dwelling space, services, furniture, furnishings or equipment, 9 including the cost of installation, but excluding finance charges and 10 cosmetic improvements. 11 (b) Provided further that an owner who is entitled to a rent increase 12 pursuant to this paragraph shall not be entitled to a further rent 13 increase based upon the installation of similar equipment, or new furni- 14 ture or furnishings within the useful life of such new equipment, or new 15 furniture or furnishings. 16 (c) The owner shall give written notice to the division of housing and 17 community renewal and the tenant named in a vacancy lease on forms 18 prescribed by the division of any such adjustment pursuant to this para- 19 graph and the failure to provide such written notice as provided herein 20 shall preclude the collection of any such adjustment. Such notice must 21 include a detailed breakdown of the nature and cost of any improvements 22 underlying an increase in rent under this paragraph and a statement that 23 any increase above the previous rent is in accordance with adjustments 24 permitted by law. The owner shall file with the division of housing and 25 community renewal all documents necessary to support the collection of 26 such increase, including, but not limited to, cancelled checks, invoices 27 and signed contracts entered into contemporaneously with the improve- 28 ments alleged. 29 § 6. Subdivision d of section 6 of section 4 of chapter 576 of the 30 laws of 1974, constituting the emergency tenant protection act of nine- 31 teen seventy-four, is amended by adding a new paragraph 6 to read as 32 follows: 33 (6) (a) Within one hundred twenty days of the effective date of this 34 paragraph, the division of housing and community renewal shall issue a 35 schedule of reasonable costs for upgrades and improvements that may be 36 claimed as a basis for an adjustment of rent pursuant to paragraph one 37 of this subdivision. The schedule of reasonable costs shall exclude 38 cosmetic improvements. The schedule of reasonable costs shall be based 39 on the average costs for similar upgrades or improvements made to compa- 40 rable properties located in each county, subject to the provisions of 41 this act, and shall be updated at least once every two years. No 42 increase in rent shall be collectible under paragraph one of this subdi- 43 vision based upon costs that exceed the reasonable costs set forth in 44 the schedule, unless approved by the division pursuant to subparagraph 45 (b) of this paragraph. 46 (b) Within thirty days of the signing of a vacancy lease including a 47 rent increase pursuant to paragraph one of this subdivision that 48 includes improvements that exceed the schedule of reasonable costs 49 pursuant to subparagraph (a) of this paragraph, the landlord will file 50 with the division of housing and community renewal an explanation of how 51 the vacancy rent was computed, and all documents necessary to support 52 the collection of such increase, including but not limited to, cancelled 53 checks, invoices and signed contracts contemporaneously with the 54 improvements alleged and a statement that any increase above the previ- 55 ous rent is in accordance with adjustments permitted by law. Upon 56 receipt of all documents submitted by the landlord, and after giving theA. 1628 6 1 tenant named in the vacancy lease an opportunity to respond, the divi- 2 sion of housing and community renewal shall issue an order approving or 3 disapproving such increase in whole or in part. 4 (c) Within thirty days of the signing of a vacancy lease including a 5 rent increase that exceeds ten percent of the rent charged to the previ- 6 ous tenant, the landlord will file with the division of housing and 7 community renewal an explanation of how the rent was computed, and all 8 documents necessary to support the collection of such increase, includ- 9 ing but not limited to, cancelled checks, invoices and signed contracts 10 contemporaneously with the improvements alleged and a statement that any 11 increase above the previous rent is in accordance with adjustments 12 permitted by law. Upon receipt of all documents submitted by the owner, 13 and after giving the tenant named in such vacancy lease an opportunity 14 to respond, the division of housing and community renewal shall issue an 15 order approving or disapproving such increase in whole or in part. Based 16 upon such determination, the division of housing and community renewal 17 shall order a refund to the tenant equal to the amount collected in 18 excess of the rent approved by the division of housing and community 19 renewal. 20 (d) No increase shall be collectible under paragraph one of this 21 subdivision where the division of housing and community renewal has 22 determined that the owner is not maintaining all building-wide required 23 services or all required services with respect to the affected housing 24 accommodation, or where there are current or outstanding hazardous 25 violations of any municipal, county, state or federal law which relate 26 to the maintenance of such services. 27 § 7. Clause 5 of the second undesignated paragraph of paragraph (a) of 28 subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti- 29 tuting the emergency housing rent control law, as amended by section 25 30 of part B of chapter 97 of the laws of 2011, is amended to read as 31 follows: 32 (5) the landlord and tenant by mutual voluntary written agreement 33 agree to a substantial increase or decrease in dwelling space or a 34 change in the services, furniture, furnishings or equipment provided in 35 the housing accommodations; provided that an owner shall be entitled to 36 a rent increase where there has been a substantial modification or 37 increase of dwelling space or an increase in the services, or installa- 38 tion of new equipment or improvements or new furniture or furnishings 39 provided in or to a tenant's housing accommodation. The permanent 40 increase in the maximum rent for the affected housing accommodation 41 shall be [one-fortieth, in the case of a building with thirty-five or42fewer housing accommodations, or one-sixtieth, in the case of a building43with more than thirty-five housing accommodations where such permanent44increase takes effect on or after September twenty-fourth, two thousand45eleven,] one eighty-fourth of the total cost incurred by the landlord in 46 providing such modification or increase in dwelling space, services, 47 furniture, furnishings or equipment, including the cost of installation, 48 but excluding finance charges and cosmetic improvements provided further 49 that an owner who is entitled to a rent increase pursuant to this clause 50 shall not be entitled to a further rent increase based upon the instal- 51 lation of similar equipment, or new furniture or furnishings within the 52 useful life of such new equipment, or new furniture or furnishings. The 53 owner shall give written notice to the commission of any such adjustment 54 pursuant to this clause; or 55 § 8. This act shall take effect on the ninetieth day after it shall 56 have become a law; provided that:A. 1628 7 1 (a) the amendments to section 26-405 of the city rent and rehabili- 2 tation law made by sections one and two of this act shall remain in full 3 force and effect only as long as the public emergency requiring the 4 regulation and control of residential rents and evictions continues, as 5 provided in subdivision 3 of section 1 of the local emergency housing 6 rent control act; 7 (b) the amendments to section 26-511 of chapter 4 of title 26 of the 8 administrative code of the city of New York made by sections three and 9 four of this act shall expire on the same date as such law expires and 10 shall not affect the expiration of such law as provided under section 11 26-520 of such law; 12 (c) the amendments to section 6 of the emergency tenant protection act 13 of nineteen seventy-four made by sections five and six of this act shall 14 expire on the same date as such act expires and shall not affect the 15 expiration of such act as provided in section 17 of chapter 576 of the 16 laws of 1974; 17 (d) the amendments to section 4 of the emergency housing rent control 18 law made by section seven of this act shall expire on the same date as 19 such law expires and shall not affect the expiration of such law as 20 provided in subdivision 2 of section 1 of chapter 274 of the laws of 21 1946; and 22 (e) effective immediately, the division of housing and community 23 renewal is authorized to and shall promulgate all rules, regulations and 24 standards necessary to implement the provisions of this act.
