Bill Text: NY S07723 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to rentals and selection of tenants in projects owned by limited-profit housing companies; repeals provisions relating to continued occupancy by certain tenants in such projects.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-06-15 - REFERRED TO RULES [S07723 Detail]
Download: New_York-2011-S07723-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 7723 I N S E N A T E June 15, 2012 ___________ Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the private housing finance law, in relation to rentals and selection of tenants in projects owned by limited-profit housing companies; and to repeal subdivision 5 of section 31 of such law relating to continued occupancy by certain tenants in such projects THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subdivision 1 of section 31 of the private housing finance 2 law is amended by adding a new paragraph (a-1) to read as follows: 3 (A-1) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF ANY OTHER GENERAL, 4 SPECIAL OR LOCAL LAW, WITH RESPECT TO MUNICIPALLY-AIDED PROJECTS IN A 5 CITY WITH A POPULATION OF ONE MILLION OR MORE, UNLESS THE COMPANY NOTI- 6 FIES THE SUPERVISING AGENCY IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY 7 RULE OF SUCH AGENCY THAT IT DOES NOT WANT AN INCREASE IN ITS RENTAL RATE 8 OR IS MAKING APPLICATION FOR A PROJECT-SPECIFIC INCREASE IN ITS RENTAL 9 RATE, THE RENTAL RATE FOR THE DWELLINGS IN ANY SUCH PROJECT SHALL BE 10 INCREASED ANNUALLY ON JULY FIRST IN AN AMOUNT EQUAL TO THE ONE YEAR 11 RENEWAL LEASE GUIDELINE PROMULGATED BY THE RENT GUIDELINES BOARD OF THE 12 CITY OF NEW YORK THEN IN EFFECT, AND NO FURTHER PROCEDURES SHALL BE 13 REQUIRED TO EFFECTUATE SUCH RENTAL RATE INCREASES. WITH RESPECT TO SUCH 14 MUNICIPALLY-AIDED PROJECTS, WHERE THE COMPANY HAS NOTIFIED THE SUPERVIS- 15 ING AGENCY IN ACCORDANCE WITH SUCH ESTABLISHED PROCEDURES THAT IT DOES 16 NOT REQUIRE ANY INCREASE IN ITS RENTAL RATE OR IS MAKING APPLICATION FOR 17 A PROJECT-SPECIFIC INCREASE IN ITS RENTAL RATE OR IF THE SUPERVISING 18 AGENCY DETERMINES THAT SUCH PROJECT NEEDS AN INCREASE IN RENTAL RATE 19 OTHER THAN THE ONE YEAR RENEWAL LEASE GUIDELINES PROMULGATED BY THE RENT 20 GUIDELINES BOARD OF THE CITY OF NEW YORK, THE SUPERVISING AGENCY MAY 21 VARY SUCH RENTAL RATE FOR SUCH PROJECT FROM SUCH GUIDELINE ON NO MORE 22 THAN AN ANNUAL BASIS PROVIDED THAT THE ALTERNATIVE RENTAL RATE WILL 23 SECURE, TOGETHER WITH ALL OTHER INCOME OF SUCH COMPANY, SUFFICIENT 24 INCOME FOR IT TO MEET WITHIN REASONABLE LIMITS ALL NECESSARY PAYMENTS, 25 TO BE MADE OR PROJECTED TO BE MADE, OF ALL EXPENSES INCLUDING FIXED 26 CHARGES, SINKING FUNDS, RESERVES AND DIVIDENDS ON OUTSTANDING STOCK AS EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16062-01-2 S. 7723 2 1 AUTHORIZED BY THE SUPERVISING AGENCY, AND NO FURTHER PROCEDURES SHALL BE 2 REQUIRED TO EFFECTUATE SUCH ALTERNATIVE RENTAL RATE. LETTING, SUBLETTING 3 OR ASSIGNMENT OF LEASES OF APARTMENTS AT GREATER RENTALS THAN THOSE 4 ESTABLISHED PURSUANT TO THIS PARAGRAPH SHALL BE UNLAWFUL. NOTWITHSTAND- 5 ING THE FOREGOING, THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO 6 ANY PROJECT (I) THAT IS OWNED BY THE FEDERAL GOVERNMENT; (II) FOR WHICH 7 THE MORTGAGE LOAN OF THE COMPANY IS INSURED OR HELD BY THE FEDERAL 8 GOVERNMENT; OR (III) THAT HAS AN INTEREST REDUCTION CONTRACT PURSUANT TO 9 SECTION TWO HUNDRED THIRTY-SIX OF THE NATIONAL HOUSING ACT (12 U.S.C. S 10 1715Z-1). 11 S 2. Paragraph (e) of subdivision 2 of section 31 of the private hous- 12 ing finance law, as added by chapter 729 of the laws of 1974, is amended 13 to read as follows: 14 (e) Notwithstanding the provisions of this subdivision, PERSONS OR 15 families [with two or more dependents] whose probable aggregate annual 16 income does not exceed one hundred twenty-five percent of the limita- 17 tions as to income as determined pursuant to paragraphs (a) and (b) of 18 this subdivision, shall also be eligible for admission to the dwelling 19 or non-housekeeping accommodations without board of a project on the 20 understanding that any PERSON OR family becoming eligible for admission 21 by reason hereof shall pay, from the time of admission, a rental 22 surcharge as provided for in subdivision three of this section, computed 23 on the basis of the income limitations applicable to such PERSON OR 24 family in the absence of this subdivision. In applying the provisions of 25 subdivision three to a PERSON OR family becoming eligible by reason of 26 this section, the maximum income prescribed by law for admission or 27 occupancy shall for all purposes be computed without reference to this 28 paragraph. 29 S 3. Subdivision 3 of section 31 of the private housing finance law, 30 as amended by chapter 778 of the laws of 1971, is amended to read as 31 follows: 32 3. In the event that the income of a person or family in occupancy 33 should increase and exceed the maximum prescribed by law for admission 34 [or for continued occupancy, based on the latest existing rent, by more 35 than twenty-five per centum], such person or family shall be [subject to 36 removal from the dwelling, non-housekeeping, aged care accommodations or 37 non-housekeeping accommodations for handicapped persons provided, howev- 38 er, that such person or family may be] permitted to remain in occupancy 39 [until such income exceeds the maximum prescribed by law by more than 40 fifty per centum, if the company, with the approval of the commissioner 41 or the supervising agency, shall determine that removal would cause 42 hardship to such person or family. Any person or family in occupancy 43 whose income exceeds the maximum prescribed by law] AND shall pay a 44 rental surcharge in accordance with a schedule of surcharges to be 45 promulgated by the company with the approval of the commissioner or the 46 supervising agency, as the case may be, provided, however, such rental 47 surcharge shall in no event exceed fifty per centum of the existing 48 rent. 49 S 4. Subdivision 3 of section 31 of the private housing finance law, 50 as amended by section 3 of this act, is amended to read as follows: 51 3. In the event that the income of a person or family in occupancy 52 should increase and exceed the maximum prescribed by law for admission, 53 such person or family shall be permitted to remain in occupancy and 54 shall pay a rental surcharge in accordance with a schedule of surcharges 55 to be promulgated by the company with the approval of the commissioner 56 or the supervising agency, as the case may be, provided, however, such S. 7723 3 1 rental surcharge shall in no event exceed fifty per centum of the exist- 2 ing rent. NOTWITHSTANDING THE PRECEDING SENTENCE, ANY SUCH PERSON OR 3 FAMILY IN OCCUPANCY WHOSE INCOME EXCEEDS SUCH MAXIMUM IN A MUNICIPALLY- 4 AIDED PROJECT IN A CITY WITH A POPULATION OF ONE MILLION OR MORE SHALL, 5 WITH THE APPROVAL OF THE SUPERVISING AGENCY, PAY A RENTAL SURCHARGE IN 6 ACCORDANCE WITH A SCHEDULE OF SURCHARGES TO BE PROMULGATED BY THE SUPER- 7 VISING AGENCY, PROVIDED, HOWEVER, THAT SUCH RENTAL SURCHARGE SHALL IN NO 8 EVENT EXCEED TWO HUNDRED PER CENTUM OF THE EXISTING RENT. 9 S 5. Subdivision 4 of section 31 of the private housing finance law, 10 as amended by chapter 743 of the laws of 1981, is amended to read as 11 follows: 12 4. Twenty-five per cent of rental surcharges collected pursuant to 13 this section on account of rentals payable prior to July first, nineteen 14 hundred eighty-one shall be paid by the company to the municipality 15 which has granted tax exemption pursuant to section thirty-three of this 16 article as a credit against the grant of tax exemption, the value of 17 such tax exemption and of such credit to be determined on an individual 18 dwelling, non-housekeeping, aged care accommodation or non-housekeeping 19 accommodations for handicapped persons unit basis. In the event that 20 such tax exemption has not been granted, or in the event that a sum 21 equal to the total of all accrued taxes as to individual dwelling, non- 22 housekeeping, aged care accommodation or non-housekeeping accommodations 23 for handicapped persons units where such tax exemption was granted have 24 been paid to the municipality, the excess if any, of surcharges and all 25 surcharges imposed after June thirtieth, nineteen hundred eighty-one 26 shall be applied to the expenses of operation and management as approved 27 by the commissioner or the supervising agency. NOTWITHSTANDING ANY 28 INCONSISTENT PROVISION OF THIS ARTICLE, WITH RESPECT TO MUNICIPALLY-AID- 29 ED PROJECTS IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, ALL 30 SURCHARGES IMPOSED ON OR AFTER THE EFFECTIVE DATE OF A CHAPTER OF THE 31 LAWS OF TWO THOUSAND TWELVE THAT AMENDED THIS SUBDIVISION SHALL BE 32 PLACED IN THE COMPANY'S CAPITAL REPAIR AND CONTINGENCY RESERVE FUND, AS 33 PROVIDED FOR BY THE RULES OF THE SUPERVISING AGENCY, UNLESS SUCH AGENCY 34 APPROVES THE APPLICATION OF SUCH SURCHARGES TO THE COMPANY'S EXPENSES OF 35 OPERATION AND MANAGEMENT. 36 S 6. Subdivision 5 of section 31 of the private housing finance law is 37 REPEALED. 38 S 7. This act shall take effect immediately; provided, however, that: 39 (i) sections one, four and five of this act shall take effect July 1, 40 2013; and (ii) effective immediately, any rule or regulation necessary 41 for the timely implementation of any provision of this act may be 42 promulgated, any procedures, forms, or instructions necessary for such 43 implementation may be adopted and issued, and any other acts by any 44 governmental agency necessary for such implementation may be taken, on 45 or after such effective date.