Bill Text: NY A05502 | 2015-2016 | General Assembly | Introduced
Bill Title: Limits the rent increase after vacancy of a housing accommodation by eliminating the twenty percent increase for vacant rent stabilized apartments; requires landlords to include an itemized cost accounting of all improvements claimed as part of such increase and copies of the corresponding receipts with the lease agreement to the new tenant; caps the increase in rent allowable to owners for individual apartment improvements to twenty percent of the current rent.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-01-06 - referred to housing [A05502 Detail]
Download: New_York-2015-A05502-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5502 2015-2016 Regular Sessions I N A S S E M B L Y February 24, 2015 ___________ Introduced by M. of A. ROSENTHAL -- read once and referred to the Committee on Housing AN ACT to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to limiting rent increase after vacancy of a housing accommodation; and 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. Paragraph 5-a of subdivision c of section 26-511 of the 2 administrative code of the city of New York, as amended by section 7 of 3 part B of chapter 97 of the laws of 2011, is amended to read as follows: 4 (5-a) provides that, notwithstanding any provision of this chapter, 5 the legal regulated rent for any vacancy lease entered into after the 6 effective date of this paragraph shall be as hereinafter provided in 7 this paragraph. [The previous legal regulated rent for such housing 8 accommodation shall be increased by the following: (i) if the vacancy 9 lease is for a term of two years, twenty percent of the previous legal 10 regulated rent; or (ii) if the vacancy lease is for a term of one year 11 the increase shall be twenty percent of the previous legal regulated 12 rent less an amount equal to the difference between (a) the two year 13 renewal lease guideline promulgated by the guidelines board of the city 14 of New York applied to the previous legal regulated rent and (b) the one 15 year renewal lease guideline promulgated by the guidelines board of the 16 city of New York applied to the previous legal regulated rent. In addi- 17 tion, if] IF the legal regulated rent was not increased with respect to 18 such housing accommodation by a permanent vacancy allowance within eight 19 years prior to a vacancy lease executed on or after the effective date 20 of this paragraph, the legal regulated rent may be [further] increased EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09027-02-5 A. 5502 2 1 by an amount equal to the product resulting from multiplying such previ- 2 ous legal regulated rent by six-tenths of one percent and further multi- 3 plying the amount of rent increase resulting therefrom by the greater of 4 (A) the number of years since the imposition of the last permanent 5 vacancy allowance, or (B) if the rent was not increased by a permanent 6 vacancy allowance since the housing accommodation became subject to this 7 chapter, the number of years that such housing accommodation has been 8 subject to this chapter. Provided that if the previous legal regulated 9 rent was less than three hundred dollars the total increase shall be as 10 calculated above plus one hundred dollars per month. Provided, further, 11 that if the previous legal regulated rent was at least three hundred 12 dollars and no more than five hundred dollars in no event shall the 13 total increase pursuant to this paragraph be less than one hundred 14 dollars per month. Such increase shall be [in lieu of any allowance 15 authorized for the one or two year renewal component thereof, but shall 16 be] in addition to any other increases authorized pursuant to this chap- 17 ter including an adjustment based upon a major capital improvement, or a 18 substantial modification or increase of dwelling space or services, or 19 installation of new equipment or improvements or new furniture or 20 furnishings provided in or to the housing accommodation pursuant to this 21 section. The increase authorized in this paragraph may not be imple- 22 mented more than one time in any calendar year, notwithstanding the 23 number of vacancy leases entered into in such year, AND MAY NOT BE 24 IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW TENANT AN ITEMIZED 25 COST ACCOUNTING OF ALL IMPROVEMENTS CLAIMED AS PART OF SUCH INCREASE AND 26 COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE AGREEMENT. 27 S 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of 28 the laws of 1974, constituting the emergency tenant protection act of 29 nineteen seventy-four, as amended by section 8 of part B of chapter 97 30 of the laws of 2011, is amended to read as follows: 31 (a-1) provides that, notwithstanding any provision of this act, the 32 legal regulated rent for any vacancy lease entered into after the effec- 33 tive date of this subdivision shall be as hereinafter set forth. [The 34 previous legal regulated rent for such housing accommodation shall be 35 increased by the following: (i) if the vacancy lease is for a term of 36 two years, twenty percent of the previous legal regulated rent; or (ii) 37 if the vacancy lease is for a term of one year the increase shall be 38 twenty percent of the previous legal regulated rent less an amount equal 39 to the difference between (a) the two year renewal lease guideline 40 promulgated by the guidelines board of the county in which the housing 41 accommodation is located applied to the previous legal regulated rent 42 and (b) the one year renewal lease guideline promulgated by the guide- 43 lines board of the county in which the housing accommodation is located 44 applied to the previous legal regulated rent. In addition, if] IF the 45 legal regulated rent was not increased with respect to such housing 46 accommodation by a permanent vacancy allowance within eight years prior 47 to a vacancy lease executed on or after the effective date of this 48 subdivision, the legal regulated rent may be [further] increased by an 49 amount equal to the product resulting from multiplying such previous 50 legal regulated rent by six-tenths of one percent and further multiply- 51 ing the amount of rent increase resulting therefrom by the greater of 52 (A) the number of years since the imposition of the last permanent 53 vacancy allowance, or (B) if the rent was not increased by a permanent 54 vacancy allowance since the housing accommodation became subject to this 55 act, the number of years that such housing accommodation has been 56 subject to this act. Provided that if the previous legal regulated rent A. 5502 3 1 was less than three hundred dollars the total increase shall be as 2 calculated above plus one hundred dollars per month. Provided, further, 3 that if the previous legal regulated rent was at least three hundred 4 dollars and no more than five hundred dollars in no event shall the 5 total increase pursuant to this subdivision be less than one hundred 6 dollars per month. Such increase shall be [in lieu of any allowance 7 authorized for the one or two year renewal component thereof, but shall 8 be] in addition to any other increases authorized pursuant to this act 9 including an adjustment based upon a major capital improvement, or a 10 substantial modification or increase of dwelling space or services, or 11 installation of new equipment or improvements or new furniture or 12 furnishings provided in or to the housing accommodation pursuant to 13 section six of this act. The increase authorized in this subdivision may 14 not be implemented more than one time in any calendar year, notwith- 15 standing the number of vacancy leases entered into in such year, AND MAY 16 NOT BE IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW TENANT AN 17 ITEMIZED COST ACCOUNTING OF ALL IMPROVEMENTS CLAIMED AS PART OF SUCH 18 INCREASE AND COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE AGREE- 19 MENT. 20 S 3. Subparagraph (e) of paragraph 1 of subdivision g of section 21 26-405 of the administrative code of the city of New York, as amended by 22 section 15 of part B of chapter 97 of the laws of 2011, is amended to 23 read as follows: 24 (e) The landlord and tenant by mutual voluntary written agreement 25 agree to a substantial increase or decrease in dwelling space or a 26 change in the services, furniture, furnishings or equipment provided in 27 the housing accommodations. An adjustment under this subparagraph shall 28 be equal to one-fortieth, in the case of a building with thirty-five or 29 fewer housing accommodations, or one-sixtieth, in the case of a building 30 with more than thirty-five housing accommodations where such adjustment 31 takes effect on or after September twenty-fourth, two thousand eleven, 32 of the total cost incurred by the landlord in providing such modifica- 33 tion or increase in dwelling space, services, furniture, furnishings or 34 equipment, including the cost of installation, but excluding finance 35 charges, WITH AN ADJUSTMENT, IN BOTH CASES, BEING NO MORE THAN TWENTY 36 PERCENT OF THE CURRENT RENT, provided further that an owner who is enti- 37 tled to a rent increase pursuant to this subparagraph shall not be enti- 38 tled to a further rent increase based upon the installation of similar 39 equipment, or new furniture or furnishings within the useful life of 40 such new equipment, or new furniture or furnishings. The owner shall 41 give written notice to the city rent agency of any such adjustment 42 pursuant to this subparagraph; or 43 S 4. Paragraph 13 of subdivision c of section 26-511 of the adminis- 44 trative code of the city of New York, as amended by section 16 of part B 45 of chapter 97 of the laws of 2011, is amended to read as follows: 46 (13) provides that an owner is entitled to a rent increase where there 47 has been a substantial modification or increase of dwelling space or an 48 increase in the services, or installation of new equipment or improve- 49 ments or new furniture or furnishings provided in or to a tenant's hous- 50 ing accommodation, on written tenant consent to the rent increase. In 51 the case of a vacant housing accommodation, tenant consent shall not be 52 required. The permanent increase in the legal regulated rent for the 53 affected housing accommodation shall be one-fortieth, in the case of a 54 building with thirty-five or fewer housing accommodations, or one-sixti- 55 eth, in the case of a building with more than thirty-five housing accom- 56 modations where such permanent increase takes effect on or after Septem- A. 5502 4 1 ber twenty-fourth, two thousand eleven, of the total cost incurred by 2 the landlord in providing such modification or increase in dwelling 3 space, services, furniture, furnishings or equipment, including the cost 4 of installation, but excluding finance charges, PROVIDED, HOWEVER, THAT 5 IN BOTH CASES, THE PERMANENT INCREASE IS NO MORE THAN TWENTY PERCENT OF 6 THE CURRENT LEGAL REGULATED RENT. Provided further that an owner who is 7 entitled to a rent increase pursuant to this paragraph shall not be 8 entitled to a further rent increase based upon the installation of simi- 9 lar equipment, or new furniture or furnishings within the useful life of 10 such new equipment, or new furniture or furnishings. 11 S 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter 12 576 of the laws of 1974, constituting the emergency tenant protection 13 act of nineteen seventy-four, as amended by section 18 of part B of 14 chapter 97 of the laws of 2011, is amended to read as follows: 15 (1) there has been a substantial modification or increase of dwelling 16 space or an increase in the services, or installation of new equipment 17 or improvements or new furniture or furnishings, provided in or to a 18 tenant's housing accommodation, on written tenant consent to the rent 19 increase. In the case of a vacant housing accommodation, tenant consent 20 shall not be required. The permanent increase in the legal regulated 21 rent for the affected housing accommodation shall be one-fortieth, in 22 the case of a building with thirty-five or fewer housing accommodations, 23 or one-sixtieth, in the case of a building with more than thirty-five 24 housing accommodations where such permanent increase takes effect on or 25 after September twenty-fourth, two thousand eleven, of the total cost 26 incurred by the landlord in providing such modification or increase in 27 dwelling space, services, furniture, furnishings or equipment, including 28 the cost of installation, but excluding finance charges, PROVIDED, 29 HOWEVER, THAT IN BOTH CASES, THE PERMANENT INCREASE IS NO MORE THAN 30 TWENTY PERCENT OF THE CURRENT LEGAL REGULATED RENT. Provided further 31 that an owner who is entitled to a rent increase pursuant to this para- 32 graph shall not be entitled to a further rent increase based upon the 33 installation of similar equipment, or new furniture or furnishings with- 34 in the useful life of such new equipment, or new furniture or 35 furnishings. 36 S 6. Clause 5 of the second undesignated paragraph of paragraph (a) of 37 subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti- 38 tuting the emergency housing rent control law, as amended by section 25 39 of part B of chapter 97 of the laws of 2011, is amended to read as 40 follows: 41 (5) the landlord and tenant by mutual voluntary written agreement 42 agree to a substantial increase or decrease in dwelling space or a 43 change in the services, furniture, furnishings or equipment provided in 44 the housing accommodations; provided that an owner shall be entitled to 45 a rent increase where there has been a substantial modification or 46 increase of dwelling space or an increase in the services, or installa- 47 tion of new equipment or improvements or new furniture or furnishings 48 provided in or to a tenant's housing accommodation. The permanent 49 increase in the maximum rent for the affected housing accommodation 50 shall be one-fortieth, in the case of a building with thirty-five or 51 fewer housing accommodations, or one-sixtieth, in the case of a building 52 with more than thirty-five housing accommodations where such permanent 53 increase takes effect on or after September twenty-fourth, two thousand 54 eleven, of the total cost incurred by the landlord in providing such 55 modification or increase in dwelling space, services, furniture, 56 furnishings or equipment, including the cost of installation, but A. 5502 5 1 excluding finance charges, PROVIDED, HOWEVER, THAT IN BOTH CASES, THE 2 PERMANENT INCREASE IS NO MORE THAN TWENTY PERCENT OF THE CURRENT RENT, 3 AND provided further that an owner who is entitled to a rent increase 4 pursuant to this clause shall not be entitled to a further rent increase 5 based upon the installation of similar equipment, or new furniture or 6 furnishings within the useful life of such new equipment, or new furni- 7 ture or furnishings. The owner shall give written notice to the commis- 8 sion of any such adjustment pursuant to this clause; or 9 S 7. This act shall take effect immediately; provided that: 10 a. the amendments to section 26-511 of chapter 4 of title 26 of the 11 administrative code of the city of New York made by sections one and 12 four of this act shall expire on the same date as such law expires and 13 shall not affect the expiration of such law as provided under section 14 26-520 of such law; 15 b. the amendments to sections 10 and 6 of the emergency tenant 16 protection act of nineteen seventy-four made by sections two and five of 17 this act shall expire on the same date as such act expires and shall not 18 affect the expiration of such act as provided in section 17 of chapter 19 576 of the laws of 1974; 20 c. the amendments to section 26-405 of the city rent and rehabili- 21 tation law made by section three of this act shall remain in full force 22 and effect only as long as the public emergency requiring the regulation 23 and control of residential rents and evictions continues, as provided in 24 subdivision 3 of section 1 of the local emergency housing rent control 25 act; and 26 d. the amendments to section 4 of the emergency housing rent control 27 law made by section six of this act shall expire on the same date as 28 such law expires and shall not affect the expiration of such law as 29 provided in subdivision 2 of section 1 of chapter 274 of the laws of 30 1946.