Bill Text: NY S02855 | 2015-2016 | General Assembly | Introduced


Bill Title: Establishes criteria for approval of rent increases to rent regulated property resulting from major capital improvements to insure that the work performed is an enhancement or upgrade to a housing accommodation or service therein and is not merely repair or replacement to existing services; prohibits approval of a major capital improvement rent increase where any outstanding hazardous violations exist.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S02855 Detail]

Download: New_York-2015-S02855-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2855
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   January 29, 2015
                                      ___________
       Introduced  by Sens. KRUEGER, HOYLMAN, MONTGOMERY, PERALTA -- read twice
         and ordered printed, and when printed to be committed to the Committee
         on Housing, Construction and Community Development
       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 approval of major capital improvement rent increases
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  26-405 of the administrative code of the city of
    2  New York is amended by adding a new subdivision n to read as follows:
    3    N. (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL BE APPROVED  BY
    4  THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL UNLESS THE WORK PERFORMED
    5  IS AN ENHANCEMENT OR UPGRADE TO A HOUSING ACCOMMODATION OR SERVICE THER-
    6  EIN; OR IS AN ADDITION  TO  SUCH  HOUSING  ACCOMMODATION  AND  OTHERWISE
    7  ELIGIBLE  ACCORDING  TO  THE PREREQUISITES FOR MAJOR CAPITAL IMPROVEMENT
    8  RENT INCREASES.   ANY REPAIR OR  REPLACEMENT  INTENDED  TO  MAINTAIN  AN
    9  EXISTING  SERVICE  SHALL NOT BE ELIGIBLE FOR A MAJOR CAPITAL IMPROVEMENT
   10  RENT INCREASE.
   11    (2) NO APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT  INCREASE  MAY
   12  BE  APPROVED  IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE
   13  TIME OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
   14  REGULATIONS OF THE DIVISION OF HOUSING  AND  COMMUNITY  RENEWAL  OR  ANY
   15  AGENCY  ADMINISTERING  AND ENFORCING A BUILDING CODE IN THE JURISDICTION
   16  IN WHICH THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY  THE  DIVI-
   17  SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
   18  ALLEVIATION  OF  THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE
   19  PROVISIONS OF THIS SECTION. EXCEPT IN THE  CASE  OF  EMERGENCY  OR  GOOD
   20  CAUSE,  THE  OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS
   21  BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
   22  AND COMMUNITY RENEWAL A STATEMENT CONTAINING INFORMATION  OUTLINING  THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04340-01-5
       S. 2855                             2
    1  SCOPE  OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDA-
    2  VIT SETTING FORTH THE FOLLOWING INFORMATION:
    3    (A)  EVERY  OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST IN THE
    4  PROPERTY OR ENTITY OWNING THE PROPERTY OR  SPONSORING  THE  IMPROVEMENT;
    5  AND
    6    (B)  A  STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE YEARS
    7  PRIOR TO THE IMPROVEMENT, BEEN FOUND  TO  HAVE  HARASSED  OR  UNLAWFULLY
    8  EVICTED  TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY UNDER
    9  THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY  STATE  OR
   10  LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.
   11    UPON  RECEIPT  OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED FOR HEREIN,
   12  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE  TENANTS
   13  IN  OCCUPANCY  IN SUCH BUILDINGS WITH SUCH INFORMATION.  THE DIVISION OF
   14  HOUSING AND COMMUNITY RENEWAL SHALL, IN ADDITION,  IMPLEMENT  PROCEDURES
   15  INCLUDING,  BUT  NOT  LIMITED TO, ELICITING TENANT COMMENTS TO DETERMINE
   16  WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
   17  TORILY COMPLETED. NO  MAJOR  CAPITAL  IMPROVEMENT  RENT  INCREASE  SHALL
   18  BECOME  EFFECTIVE  UNTIL  ANY DEFECTIVE OR DEFICIENT REHABILITATION WORK
   19  HAS BEEN CURED.
   20    S 2. Subdivision c of section 26-511 of the administrative code of the
   21  city of New York is amended by adding a new paragraph  6-b  to  read  as
   22  follows:
   23    (6-B) PROVIDES CRITERIA WHEREBY THE COMMISSIONER MAY ACT UPON APPLICA-
   24  TION  BY  OWNERS  FOR  INCREASES  IN  EXCESS  OF  THE LEVEL OF FAIR RENT
   25  INCREASE ESTABLISHED UNDER THIS LAW PROVIDED HOWEVER, THAT SUCH CRITERIA
   26  SHALL PROVIDE THAT:
   27    (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL BE APPROVED BY THE
   28  DIVISION OF HOUSING AND COMMUNITY RENEWAL UNLESS THE WORK  PERFORMED  IS
   29  AN ENHANCEMENT OR UPGRADE TO A HOUSING ACCOMMODATION OR SERVICE THEREIN;
   30  OR  IS  AN ADDITION TO SUCH HOUSING ACCOMMODATION AND OTHERWISE ELIGIBLE
   31  ACCORDING TO  THE  PREREQUISITES  FOR  MAJOR  CAPITAL  IMPROVEMENT  RENT
   32  INCREASES.    ANY REPAIR OR REPLACEMENT INTENDED TO MAINTAIN AN EXISTING
   33  SERVICE SHALL NOT BE ELIGIBLE  FOR  A  MAJOR  CAPITAL  IMPROVEMENT  RENT
   34  INCREASE.
   35    (2)  NO  APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT INCREASE MAY
   36  BE APPROVED IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS  AT  THE
   37  TIME OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
   38  REGULATIONS  OF  THE  DIVISION  OF  HOUSING AND COMMUNITY RENEWAL OR ANY
   39  AGENCY ADMINISTERING AND ENFORCING A BUILDING CODE IN  THE  JURISDICTION
   40  IN  WHICH  THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY THE DIVI-
   41  SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
   42  ALLEVIATION OF THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT  WITH  THE
   43  PROVISIONS  OF  THIS  SECTION.  EXCEPT  IN THE CASE OF EMERGENCY OR GOOD
   44  CAUSE, THE OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN  THIRTY  DAYS
   45  BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
   46  AND  COMMUNITY  RENEWAL A STATEMENT CONTAINING INFORMATION OUTLINING THE
   47  SCOPE OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN  AFFIDA-
   48  VIT SETTING FORTH THE FOLLOWING INFORMATION:
   49    (A)  EVERY  OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST IN THE
   50  PROPERTY OR ENTITY OWNING THE PROPERTY OR  SPONSORING  THE  IMPROVEMENT;
   51  AND
   52    (B)  A  STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE YEARS
   53  PRIOR TO THE IMPROVEMENT, BEEN FOUND  TO  HAVE  HARASSED  OR  UNLAWFULLY
   54  EVICTED  TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY UNDER
   55  THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY  STATE  OR
   56  LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.
       S. 2855                             3
    1    UPON  RECEIPT  OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED FOR HEREIN,
    2  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE  TENANTS
    3  IN  OCCUPANCY  IN SUCH BUILDINGS WITH SUCH INFORMATION.  THE DIVISION OF
    4  HOUSING AND COMMUNITY RENEWAL SHALL, IN ADDITION,  IMPLEMENT  PROCEDURES
    5  INCLUDING,  BUT  NOT  LIMITED TO, ELICITING TENANT COMMENTS TO DETERMINE
    6  WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
    7  TORILY COMPLETED. NO  MAJOR  CAPITAL  IMPROVEMENT  RENT  INCREASE  SHALL
    8  BECOME  EFFECTIVE  UNTIL  ANY DEFECTIVE OR DEFICIENT REHABILITATION WORK
    9  HAS BEEN CURED.
   10    S 3. Section 6 of section 4 of  chapter  576  of  the  laws  of  1974,
   11  constituting  the  emergency  tenant protection act of nineteen seventy-
   12  four, is amended by adding a new subdivision d-1 to read as follows:
   13    D-1. (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL  BE  APPROVED
   14  BY  THE  DIVISION  OF  HOUSING  AND  COMMUNITY  RENEWAL  UNLESS THE WORK
   15  PERFORMED IS AN ENHANCEMENT OR UPGRADE TO  A  HOUSING  ACCOMMODATION  OR
   16  SERVICE  THEREIN;  OR  IS  AN ADDITION TO SUCH HOUSING ACCOMMODATION AND
   17  OTHERWISE ELIGIBLE ACCORDING TO  THE  PREREQUISITES  FOR  MAJOR  CAPITAL
   18  IMPROVEMENT RENT INCREASES.  ANY REPAIR OR REPLACEMENT INTENDED TO MAIN-
   19  TAIN  AN  EXISTING  SERVICE  SHALL  NOT  BE ELIGIBLE FOR A MAJOR CAPITAL
   20  IMPROVEMENT RENT INCREASE.
   21    (2) NO APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT  INCREASE  MAY
   22  BE  APPROVED  IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE
   23  TIME OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
   24  REGULATIONS OF THE DIVISION OF HOUSING  AND  COMMUNITY  RENEWAL  OR  ANY
   25  AGENCY  ADMINISTERING  AND ENFORCING A BUILDING CODE IN THE JURISDICTION
   26  IN WHICH THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY  THE  DIVI-
   27  SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
   28  ALLEVIATION  OF  THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE
   29  PROVISIONS OF THIS SECTION. EXCEPT IN THE  CASE  OF  EMERGENCY  OR  GOOD
   30  CAUSE,  THE  OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS
   31  BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
   32  AND COMMUNITY RENEWAL A STATEMENT CONTAINING INFORMATION  OUTLINING  THE
   33  SCOPE  OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDA-
   34  VIT SETTING FORTH THE FOLLOWING INFORMATION:
   35    (A) EVERY OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST  IN  THE
   36  PROPERTY  OR  ENTITY  OWNING THE PROPERTY OR SPONSORING THE IMPROVEMENT;
   37  AND
   38    (B) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE  FIVE  YEARS
   39  PRIOR  TO  THE  IMPROVEMENT,  BEEN  FOUND TO HAVE HARASSED OR UNLAWFULLY
   40  EVICTED TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY  UNDER
   41  THE  PENAL  LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR
   42  LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.
   43    UPON RECEIPT OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED  FOR  HEREIN,
   44  THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE TENANTS
   45  IN OCCUPANCY IN SUCH BUILDINGS WITH SUCH INFORMATION.   THE DIVISION  OF
   46  HOUSING  AND  COMMUNITY RENEWAL SHALL, IN ADDITION, IMPLEMENT PROCEDURES
   47  INCLUDING, BUT NOT LIMITED TO, ELICITING TENANT  COMMENTS  TO  DETERMINE
   48  WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
   49  TORILY  COMPLETED.  NO  MAJOR  CAPITAL  IMPROVEMENT  RENT INCREASE SHALL
   50  BECOME EFFECTIVE UNTIL ANY DEFECTIVE OR  DEFICIENT  REHABILITATION  WORK
   51  HAS BEEN CURED.
   52    S  4.  Subdivision  d  of section 6 of section 4 of chapter 576 of the
   53  laws of 1974 constituting the emergency tenant protection act  of  nine-
   54  teen  seventy-four  is  amended  by  adding a new paragraph 6 to read as
   55  follows:
       S. 2855                             4
    1    (6) NOTWITHSTANDING PARAGRAPH THREE OF THIS SUBDIVISION THERE SHALL BE
    2  NO ADJUSTMENT FOR ANY MAJOR CAPITAL IMPROVEMENT FUNDED IN ANY PART  FROM
    3  MONEYS  PROVIDED  BY  THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
    4  AUTHORITY.
    5    S 5. Paragraph 1 of subdivision g of section 26-405 of the administra-
    6  tive  code  of  the city of New York is amended by adding a new subpara-
    7  graph (p) to read as follows:
    8    (P) NOTWITHSTANDING SUBPARAGRAPH (G) OR (K) OF THIS  PARAGRAPH,  THERE
    9  SHALL  BE  NO  ADJUSTMENT  FOR  ANY MAJOR CAPITAL IMPROVEMENT OR FOR ANY
   10  OTHER EXPENDITURES TO IMPROVE, RESTORE OR  PRESERVE  THE  QUALITY  OF  A
   11  STRUCTURE IF SUCH MAJOR CAPITAL IMPROVEMENT OR SUCH OTHER EXPENDITURE IS
   12  FUNDED  IN  ANY  PART  FROM MONEYS PROVIDED BY THE NEW YORK STATE ENERGY
   13  RESEARCH AND DEVELOPMENT AUTHORITY.
   14    S 6. This act shall take effect immediately, provided that:
   15    (a) the amendments to section 26-405 of the city  rent  and  rehabili-
   16  tation  law  made  by  sections one and five of this act shall remain in
   17  full force and effect only so long as the public emergency requiring the
   18  regulation and control of residential rents and evictions continues,  as
   19  provided  in  subdivision  3 of section 1 of the local emergency housing
   20  rent control act;
   21    (b) the amendment to section 26-511 of the rent stabilization  law  of
   22  nineteen hundred sixty-nine made by section two of this act shall expire
   23  on the same date as such law expires and shall not affect the expiration
   24  of  such  law as provided under section 26-520 of such law, as from time
   25  to time amended; and
   26    (c) the amendments to section 6 of the emergency tenant protection act
   27  of nineteen seventy-four made by sections three and  four  of  this  act
   28  shall  expire  on the same date as such act expires and shall not affect
   29  the expiration of such act as provided in section 17 of chapter  576  of
   30  the laws of 1974, as from time to time amended.
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