Bill Text: NY A08368 | 2019-2020 | General Assembly | Introduced

---

Bill Title: Relates to eliminating the price index of operating costs as a factor in determining rent increases by the rent guidelines board.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to housing [A08368 Detail]

Download: New_York-2019-A08368-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          8368

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      June 15, 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 and  the
          emergency  tenant protection act of nineteen seventy-four, in relation
          to eliminating the price index of  operating  costs  as  a  factor  in
          determining rent increases by the rent guidelines board

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision b of section 26-510 of the administrative  code
     2  of the city of New York is amended to read as follows:
     3    b.  The  rent guidelines board shall establish annually guidelines for
     4  rent adjustments, and in determining whether rents for housing  accommo-
     5  dations  subject  to  the  emergency  tenant  protection act of nineteen
     6  seventy-four or this law shall be adjusted shall consider,  among  other
     7  things  (1) the economic condition of the residential real estate indus-
     8  try in the affected area including such factors as  the  prevailing  and
     9  projected  (i)  [real estate taxes and sewer and water rates, (ii) gross
    10  operating maintenance costs  (including  insurance  rates,  governmental
    11  fees,  cost  of  fuel and labor costs), (iii)] costs and availability of
    12  financing (including effective rates of interest), [(iv)] (ii)  over-all
    13  supply  of  housing accommodations and over-all vacancy rates, (2) rele-
    14  vant data from the current and projected cost of living indices for  the
    15  affected  area,  (3) such other data as may be made available to it. Not
    16  later than July first of each year, the rent guidelines board shall file
    17  with the city clerk its findings for the preceding  calendar  year,  and
    18  shall  accompany  such  findings with a statement of the maximum rate or
    19  rates of rent adjustment, if any, for one or more  classes  of  accommo-
    20  dations  subject  to  this  law,  authorized  for leases or other rental
    21  agreements commencing on the next succeeding October first or within the
    22  twelve months thereafter. Such findings and statement shall be published
    23  in the City Record.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10414-01-9
        A. 8368                             2

     1    § 2. Subdivision b of section 4 of section 4 of  chapter  576  of  the
     2  laws  of 1974, constituting the emergency tenant protection act of nine-
     3  teen seventy-four, as amended by chapter 486 of the laws  of  1976,  the
     4  opening  paragraph as amended by chapter 403 of the laws of 1983 and the
     5  second  and  third  undesignated paragraphs as amended by chapter 330 of
     6  the laws of 1980, is amended to read as follows:
     7    b. A county rent guidelines board shall establish annually  guidelines
     8  for  rent  adjustments  which,  at its sole discretion may be varied and
     9  different for and within the several  zones  and  jurisdictions  of  the
    10  board, and in determining whether rents for housing accommodations as to
    11  which  an  emergency  has  been  declared  pursuant to this act shall be
    12  adjusted, shall consider among other things (1) the  economic  condition
    13  of  the  residential real estate industry in the affected area including
    14  such factors as the prevailing and projected (i) [real estate taxes  and
    15  sewer and water rates, (ii) gross operating maintenance costs (including
    16  insurance  rates,  governmental  fees,  cost  of  fuel and labor costs),
    17  (iii)] costs and availability of financing (including effective rates of
    18  interest), [(iv)] (ii) over-all supply  of  housing  accommodations  and
    19  over-all vacancy rates, (2) relevant data from the current and projected
    20  cost of living indices for the affected area, (3) such other data as may
    21  be  made  available to it. As soon as practicable after its creation and
    22  thereafter not later than July first of each  year,  a  rent  guidelines
    23  board  shall  file  with  the  state  division  of housing and community
    24  renewal its findings for the preceding calendar year, and shall accompa-
    25  ny such findings with a statement of the maximum rate or rates  of  rent
    26  adjustment,  if any, for one or more classes of accommodation subject to
    27  this act, authorized for leases or other  rental  agreements  commencing
    28  during the next succeeding twelve months. The standards for rent adjust-
    29  ments may be applicable for the entire county or may be varied according
    30  to  such  zones  or  jurisdictions within such county as the board finds
    31  necessary to achieve the purposes of this subdivision.
    32    The standards for  rent  adjustments  established  annually  shall  be
    33  effective for leases commencing on October first of each year and during
    34  the next succeeding twelve months whether or not the board has filed its
    35  findings  and  statement of the maximum rate or rates of rent adjustment
    36  by July first of each year. If such lease is entered  into  before  such
    37  filing  by  the board, it may provide for the rent to be adjusted by the
    38  rates then in effect, subject to change by the applicable rates of  rent
    39  adjustment when filed, such change to be effective as of the date of the
    40  commencement  of  the  lease.  Said  lease must provide that, if the new
    41  rates of rent adjustment differ  for  leases  of  different  terms,  the
    42  tenant  has  the option of changing the original lease term to any other
    43  term for which a rate of rent adjustment is set by the board,  with  the
    44  rental to be adjusted accordingly.
    45    Where  a city, town or village shall act to determine the existence of
    46  public emergency pursuant to section three of this act subsequent to the
    47  establishment of annual guidelines for rent adjustments of the  accommo-
    48  dations  subject to this act, the rent guidelines board as soon as prac-
    49  ticable thereafter shall file its findings and rates of rent  adjustment
    50  for  leases or other rental agreements for the housing accommodations in
    51  such a city, town or village, which rates shall be effective for  leases
    52  or  other rental agreements commencing on or after the effective date of
    53  the determination.
    54    § 3. This act shall take effect immediately; provided,  however,  that
    55  the  amendments to section 26-510 of the rent stabilization law of nine-
    56  teen hundred sixty-nine made by section one of this act shall expire  on
        A. 8368                             3

     1  the same date as such law expires and shall not affect the expiration of
     2  such  law  as  provided  under section 26-520 of such law; and provided,
     3  further, that the amendments  to  section  4  of  the  emergency  tenant
     4  protection  act of nineteen seventy-four made by section two of this act
     5  shall expire on the same date as such act expires and shall  not  affect
     6  the  expiration  of such act as provided in section 17 of chapter 576 of
     7  the laws of 1974, as amended.