Bill Text: NY A07370 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to limiting the improvements that are eligible for a major capital improvement rent increase; provides that a major capital improvement rent increase shall not be approved by the division of housing and community renewal for the following improvements: installation of aluminum siding, enlargement or construction of a boiler room, replacement of a catwalk, installation or replacement of a chimney, replacement of fire escapes including landings, replacement of parapets, pointing and waterproofing on exposed sides of a building, resurfacing of exterior walls including brick or masonry work, installation of new solar heating systems, replacement of structural steel beams including footing and foundation, installation of new security monitoring systems, installation of waste compactor serving an entire building, construction of a waste compactor room or installation of new water tanks.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to housing [A07370 Detail]
Download: New_York-2019-A07370-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7370 2019-2020 Regular Sessions IN ASSEMBLY April 26, 2019 ___________ Introduced by M. of A. EPSTEIN -- read once and referred to the Commit- tee 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 limiting the improve- ments that are eligible for a major capital improvement rent increase The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (g) 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 31 of part A of chapter 20 of the laws of 2015, is amended to 4 read as follows: 5 (g) There has been since July first, nineteen hundred seventy, a major 6 capital improvement required for the operation, preservation or mainte- 7 nance of the structure. An adjustment under this subparagraph (g) for 8 any order of the commissioner issued after the effective date of the 9 rent act of 2015 shall be in an amount sufficient to amortize the cost 10 of the improvements pursuant to this subparagraph (g) over an eight-year 11 period for buildings with thirty-five or fewer units or a nine year 12 period for buildings with more than [thiry-five] thirty-five units, 13 provided, however, a major capital improvement rent increase shall not 14 be approved by the division of housing and community renewal for the 15 following improvements: installation of aluminum siding, enlargement or 16 construction of a boiler room, replacement of a catwalk, installation or 17 replacement of a chimney, replacement of fire escapes including land- 18 ings, replacement of parapets, pointing and waterproofing on exposed 19 sides of a building, resurfacing of exterior walls including brick or 20 masonry work, installation of new solar heating systems, replacement of 21 structural steel beams including footing and foundation, installation of 22 new security monitoring systems, installation of waste compactor serving EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10535-01-9A. 7370 2 1 an entire building, construction of a waste compactor room or installa- 2 tion of new water tanks; or 3 § 2. Paragraph 6 of subdivision c of section 26-511 of the administra- 4 tive code of the city of New York, as amended by section 29 of part A of 5 chapter 20 of the laws of 2015, is amended to read as follows: 6 (6) provides criteria whereby the commissioner may act upon applica- 7 tions by owners for increases in excess of the level of fair rent 8 increase established under this law provided, however, that such crite- 9 ria shall provide (a) as to hardship applications, for a finding that 10 the level of fair rent increase is not sufficient to enable the owner to 11 maintain approximately the same average annual net income (which shall 12 be computed without regard to debt service, financing costs or manage- 13 ment fees) for the three year period ending on or within six months of 14 the date of an application pursuant to such criteria as compared with 15 annual net income, which prevailed on the average over the period nine- 16 teen hundred sixty-eight through nineteen hundred seventy, or for the 17 first three years of operation if the building was completed since nine- 18 teen hundred sixty-eight or for the first three fiscal years after a 19 transfer of title to a new owner provided the new owner can establish to 20 the satisfaction of the commissioner that he or she acquired title to 21 the building as a result of a bona fide sale of the entire building and 22 that the new owner is unable to obtain requisite records for the fiscal 23 years nineteen hundred sixty-eight through nineteen hundred seventy 24 despite diligent efforts to obtain same from predecessors in title and 25 further provided that the new owner can provide financial data covering 26 a minimum of six years under his or her continuous and uninterrupted 27 operation of the building to meet the three year to three year compar- 28 ative test periods herein provided; and (b) as to completed building- 29 wide major capital improvements, for a finding that such improvements 30 are deemed depreciable under the Internal Revenue Code and that the cost 31 is to be amortized over an eight-year period for a building with thir- 32 ty-five or fewer housing accommodations, or a nine-year period for a 33 building with more than thirty-five housing accommodations, for any 34 determination issued by the division of housing and community renewal 35 after the effective date of the rent act of 2015, based upon cash 36 purchase price exclusive of interest or service charges. A major capi- 37 tal improvement rent increase shall not be approved by the division of 38 housing and community renewal for the following improvements: installa- 39 tion of aluminum siding, enlargement or construction of a boiler room, 40 replacement of a catwalk, installation or replacement of a chimney, 41 replacement of fire escapes including landings, replacement of parapets, 42 pointing and waterproofing on exposed sides of a building, resurfacing 43 of exterior walls including brick or masonry work, installation of new 44 solar heating systems, replacement of structural steel beams including 45 footing and foundation, installation of new security monitoring systems, 46 installation of waste compactor serving an entire building, construction 47 of a waste compactor room or installation of new water tanks. Notwith- 48 standing anything to the contrary contained herein, no hardship increase 49 granted pursuant to this paragraph shall, when added to the annual gross 50 rents, as determined by the commissioner, exceed the sum of, (i) the 51 annual operating expenses, (ii) an allowance for management services as 52 determined by the commissioner, (iii) actual annual mortgage debt 53 service (interest and amortization) on its indebtedness to a lending 54 institution, an insurance company, a retirement fund or welfare fund 55 which is operated under the supervision of the banking or insurance laws 56 of the state of New York or the United States, and (iv) eight and one-A. 7370 3 1 half percent of that portion of the fair market value of the property 2 which exceeds the unpaid principal amount of the mortgage indebtedness 3 referred to in subparagraph (iii) of this paragraph. Fair market value 4 for the purposes of this paragraph shall be six times the annual gross 5 rent. The collection of any increase in the stabilized rent for any 6 apartment pursuant to this paragraph shall not exceed six percent in any 7 year from the effective date of the order granting the increase over the 8 rent set forth in the schedule of gross rents, with collectability of 9 any dollar excess above said sum to be spread forward in similar incre- 10 ments and added to the stabilized rent as established or set in future 11 years; 12 § 3. Paragraph 3 of subdivision d of section 6 of section 4 of chapter 13 576 of the laws of 1974, constituting the emergency tenant protection 14 act of nineteen seventy-four, as amended by section 30 of part A of 15 chapter 20 of the laws of 2015, is amended to read as follows: 16 (3) there has been since January first, nineteen hundred seventy-four 17 a major capital improvement required for the operation, preservation or 18 maintenance of the structure. An adjustment under this paragraph shall 19 be in an amount sufficient to amortize the cost of the improvements 20 pursuant to this paragraph over an eight-year period for a building with 21 thirty-five or fewer housing accommodations, or a nine-year period for a 22 building with more than thirty-five housing accommodations, for any 23 determination issued by the division of housing and community renewal 24 after the effective date of the rent act of 2015, provided, however, a 25 major capital improvement rent increase shall not be approved by the 26 division of housing and community renewal for the following improve- 27 ments: installation of aluminum siding, enlargement or construction of a 28 boiler room, replacement of a catwalk, installation or replacement of a 29 chimney, replacement of fire escapes including landings, replacement of 30 parapets, pointing and waterproofing on exposed sides of a building, 31 resurfacing of exterior walls including brick or masonry work, installa- 32 tion of new solar heating systems, replacement of structural steel beams 33 including footing and foundation, installation of new security monitor- 34 ing systems, installation of waste compactor serving an entire building, 35 construction of a waste compactor room or installation of new water 36 tanks, or 37 § 4. Subparagraph 7 of the second undesignated paragraph of paragraph 38 (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, 39 constituting the emergency housing rent control law, as amended by 40 section 32 of part A of chapter 20 of the laws of 2015, is amended to 41 read as follows: 42 (7) there has been since March first, nineteen hundred fifty, a major 43 capital improvement required for the operation, preservation or mainte- 44 nance of the structure; which for any order of the commissioner issued 45 after the effective date of the rent act of 2015 the cost of such 46 improvement shall be amortized over an eight-year period for buildings 47 with thirty-five or fewer units or a nine year period for buildings with 48 more than [thiry-five] thirty-five units, provided, however, a major 49 capital improvement rent increase shall not be approved by the division 50 of housing and community renewal for the following improvements: instal- 51 lation of aluminum siding, enlargement or construction of a boiler room, 52 replacement of a catwalk, installation or replacement of a chimney, 53 replacement of fire escapes including landings, replacement of parapets, 54 pointing and waterproofing on exposed sides of a building, resurfacing 55 of exterior walls including brick or masonry work, installation of new 56 solar heating systems, replacement of structural steel beams includingA. 7370 4 1 footing and foundation, installation of new security monitoring systems, 2 installation of waste compactor serving an entire building, construction 3 of a waste compactor room or installation of new water tanks, or 4 § 5. This act shall take effect immediately; provided that: 5 (a) the amendments to section 26-405 of the city rent and rehabili- 6 tation law made by section one of this act shall remain in full force 7 and effect only as long as the public emergency requiring the regulation 8 and control of residential rents and evictions continues, as provided in 9 subdivision 3 of section 1 of the local emergency housing rent control 10 act; 11 (b) the amendments to section 26-511 of the rent stabilization law of 12 nineteen hundred sixty-nine made by section two of this act shall expire 13 on the same date as such law expires and shall not affect the expiration 14 of such law as provided under section 26-520 of such law, as from time 15 to time amended; 16 (c) the amendments to section 6 of the emergency tenant protection act 17 of nineteen seventy-four made by section three of this act shall expire 18 on the same date as such act expires and shall not affect the expiration 19 of such act as provided in section 17 of chapter 576 of the laws of 20 1974, as from time to time amended; and 21 (d) the amendments to section 4 of the emergency housing rent control 22 law made by section four of this act shall expire on the same date as 23 such law expires and shall not affect the expiration of such law as 24 provided in subdivision 2 of section 1 of chapter 274 of the laws of 25 1946.
