Bill Text: NY A06118 | 2019-2020 | General Assembly | Introduced

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Bill Title: Provides for an alternative hardship allowance for landlords in New York city rent controlled apartments which allows a hardship rent increase where a building's annual net income is less than 8.5 percent of the equalized assessed value.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2020-01-08 - referred to housing [A06118 Detail]

Download: New_York-2019-A06118-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6118
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 28, 2019
                                       ___________
        Introduced by M. of A. FITZPATRICK, TAGUE -- Multi-Sponsored by -- M. of
          A. MANKTELOW -- 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 providing an alternative hardship allowance
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The opening paragraph of subparagraph (a) of paragraph 1 of
     2  subdivision g of section 26-405 of the administrative code of  the  city
     3  of New York is amended to read as follows:
     4    The  rental  income from a property yields a net annual return of less
     5  than [six] eight and one-half per centum of the valuation of the proper-
     6  ty.
     7    § 2. Subdivision c of section 26-511 of the administrative code of the
     8  city of New York is amended by adding a new paragraph  6-b  to  read  as
     9  follows:
    10    (6-b)  provides  criteria  whereby  as  an alternative to the hardship
    11  application provided under paragraph six  or  paragraph  six-a  of  this
    12  subdivision  owners of buildings acquired by the same owner or a related
    13  entity owned by the same principals three years prior  to  the  date  of
    14  application  may  apply  to  the state division of housing and community
    15  renewal for increases in excess of the  level  of  applicable  guideline
    16  increases  established  under this law based on a finding by the commis-
    17  sioner of housing and community renewal that  such  guideline  increases
    18  are  not  sufficient to enable the owner to maintain a net annual return
    19  of eight and one-half per centum of the valuation of the property.  Such
    20  valuation shall be the current assessed valuation, which is in effect at
    21  the time of the filing of the application for an adjustment  under  this
    22  paragraph  properly  adjusted  by  applying thereto the ratio which such
    23  assessed valuation bears to the full  valuation  as  determined  by  the
    24  commissioner  of  taxation and finance.   Net annual return shall be the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06172-01-9
        A. 6118                             2
     1  amount by which the earned income exceeds the operating expenses of  the
     2  property,  excluding  mortgage  interest and amortization, and excluding
     3  allowances for obsolescence and reserves, but including an allowance for
     4  depreciation  of  two per centum of the value of the buildings exclusive
     5  of the land, or the amount shown for depreciation of  the  buildings  in
     6  the  latest  required  federal  income  tax  return, whichever is lower;
     7  provided, however, that no allowance for depreciation of  the  buildings
     8  shall  be  included  where the buildings have been fully depreciated for
     9  federal income tax purposes or on the books of the owner.
    10    § 3. Subdivision d of section 6 of section 4 of  chapter  576  of  the
    11  laws  of 1974, constituting the emergency tenant protection act of nine-
    12  teen seventy-four, is amended by adding a new paragraph  6  to  read  as
    13  follows:
    14    (6) as an alternative to the hardship application provided under para-
    15  graph  four  or five of this subdivision owners of buildings acquired by
    16  the same owner or a related entity owned by the  same  principals  three
    17  years  prior  to the date of application may apply to the state division
    18  of housing and community renewal for increases in excess of the level of
    19  applicable guideline increases established under this  act  based  on  a
    20  finding  by  the commissioner of housing and community renewal that such
    21  guideline increases are not sufficient to enable the owner to maintain a
    22  net annual return of eight and one-half per centum of the  valuation  of
    23  the  property.    Such valuation shall be the current assessed valuation
    24  established by a city, town or village, which is in effect at  the  time
    25  of  the filing of the application for an adjustment under this paragraph
    26  properly adjusted by applying thereto  the  ratio  which  such  assessed
    27  valuation  bears to the full valuation as determined by the commissioner
    28  of taxation and finance. Net annual return shall be the amount by  which
    29  the  earned  income  exceeds  the  operating  expenses  of the property,
    30  excluding mortgage interest and amortization, and  excluding  allowances
    31  for  obsolescence  and reserves, but including an allowance for depreci-
    32  ation of two per centum of the value of the buildings exclusive  of  the
    33  land,  or  the  amount  shown  for  depreciation of the buildings in the
    34  latest required federal income tax return, whichever is lower; provided,
    35  however, that no allowance for depreciation of the  buildings  shall  be
    36  included  where  the  buildings  have been fully depreciated for federal
    37  income tax purposes or on the books of the owner.
    38    § 4. This act shall take effect immediately, provided that the  amend-
    39  ment  to section 26-405 of the city rent and rehabilitation law, made by
    40  section one of this act, shall remain in full force and effect  only  as
    41  long  as  the  public  emergency requiring the regulation and control of
    42  residential rents and evictions continues, as provided in subdivision  3
    43  of  section  1  of  the  local  emergency  housing rent control act; and
    44  provided further that the  amendment  to  section  26-511  of  the  rent
    45  stabilization law of nineteen hundred sixty-nine, made by section two of
    46  this  act,  shall  expire on the same date as such law expires and shall
    47  not affect the expiration of such law as provided under  section  26-520
    48  of the administrative code of the city of New York; and provided further
    49  that  the  amendment to section 6 of the emergency tenant protection act
    50  of nineteen seventy-four, made by  section  three  of  this  act,  shall
    51  expire  on  the  same  date as such act expires and shall not affect the
    52  expiration of such act as provided in section 17 of chapter 576  of  the
    53  laws of 1974, as amended.