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.