S1040-2013 Actions

• Jan 9, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

S1040-2013 Memo

BILL NUMBER:S1040

TITLE OF BILL:
An act
to amend the administrative code of the city of New York, the emergency
tenant protection act of nineteen seventy-four, the emergency housing
rent control law and the local emergency rent control act, in relation
to rent increases after vacancy of a housing accommodation; and to repeal
certain provisions of the administrative code of the city of New York
and the emergency tenant protection act of nineteen seventy-four
relating thereto

PURPOSE OF THE BILL:
To protect tenants by repealing the ability of a
landlord to obtain a twenty percent increase in rent pursuant to the
statutory vacancy
bonus provision of the Emergency Tenant Protection Act.

SUMMARY OF SPECIFIC PROVISIONS:
This legislation amends the
administrative code of the City of New York, the emergency tenant
protection act of nineteen seventy- four, the emergency housing rent
control law and the local emergency rent control act, in relation to
rent increases after vacancy of a housing accommodation and to repeal
certain provisions of the administration code of the city of New York
and the emergency tenant protection act of nineteen seventy-four,
that permits a landlord to increase the legally permissible rent
by twenty percent (20%) upon vacancy of a rent-regulated apartment.

JUSTIFICATION:
As housing costs increase exponentially across New York
City, the displacement of working families and middle class residents
from rent-regulated apartments has reached crisis proportions.
Undoubtedly, the ability of landlords to increase rent by 20% in the
event of a vacancy, getting closer to the decontrol threshold of two
thousand dollars per month, has been playing a factor.

Under current law, there are no limitations imposed on a landlord's
eligibility for a statutory vacancy bonus. Accordingly, a landlord
can benefit from the vacancy bonus multiple times per year, rapidly
transforming an
affordable apartment into one that is market-rate and decontrolled.

Equally problematic, there is no "clean hands" requirement that the
landlord conduct themselves responsibly in order to benefit from the
bonus.
Consequently, if a tenant leaves an apartment that is uninhabitable
due to lack of heat, hot water, electricity, repairs or sanitary
conditions, the landlord remains eligible for the twenty percent
increase in rent upon vacancy. As a result, current law creates
incentives for bad actors to deprive tenants of a habitable apartment
in order to benefit from the statutory
vacancy bonus.

In order to stem the displacement crisis in New York City, and
preserve the affordable housing stock that remains available to


working families and moderate-income residents, the rent regulation
laws are in need of comprehensive reform. The repeal of the statutory
vacancy bonus provision is
an important step in that direction.

PRIOR LEGISLATIVE HISTORY:
2008:    S.8155 Serrano - Referred to Housing, Construction,
         and Community Development
2009-10: Senate & Assembly Referred to Housing
2011-12: S.2699

FISCAL IMPLICATIONS FOR STATE & LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

S1040-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1040

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by Sens. SERRANO, KRUEGER, PERKINS -- 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,  the
    emergency tenant protection act of nineteen seventy-four, the emergen-
    cy  housing rent control law and the local emergency rent control act,
    in relation to rent increases after  vacancy  of  a  housing  accommo-
    dation; and to repeal certain provisions of the administrative code of
    the  city of New York and the emergency tenant protection act of nine-
    teen seventy-four relating thereto

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Paragraph  5-a  of subdivision c of section 26-511 of the
  administrative code of the city of New York is REPEALED.
    S 2. Subdivision (a-1) of section 10 of section 4 of  chapter  576  of
  the  laws  of  1974, constituting the emergency tenant protection act of
  nineteen seventy-four is REPEALED.
    S 3. Subdivision f of section 26-512 of the administrative code of the
  city of New York, as added by chapter  116  of  the  laws  of  1997,  is
  amended to read as follows:

    f.  Notwithstanding  any  provision of this law to the contrary in the
  case where all tenants named in a lease have permanently vacated a hous-
  ing accommodation and a family member of such tenant or tenants is enti-
  tled to and executes a renewal lease for the  housing  accommodation  if
  such accommodation continues to be subject to this law after such family
  member  vacates,  on  the occurrence of such vacancy the legal regulated
  rent shall be increased by a sum equal to the allowance then  in  effect
  for  vacancy leases[, including the amount allowed by paragraph (five-a)
  of subdivision c of section 26-511 of this law]. Such increase shall  be
  in addition to any other increases provided for in this law including an
  adjustment  based  upon  a  major  capital improvement, or a substantial
  modification or increase of dwelling space or services, or  installation
  of  new  equipment  or  improvements  or  new  furniture  or furnishings

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD00557-01-3

 S. 1040                             2

  provided in or to the housing accommodation pursuant to  section  26-511
  of this law and shall be applicable in like manner to each second subse-
  quent succession.
    S  4.  Subdivision  g  of section 6 of section 4 of chapter 576 of the
  laws of 1974, constituting the emergency tenant protection act of  nine-
  teen  seventy-four,  as  added  by  chapter  116 of the laws of 1997, is
  amended to read as follows:

    g. Notwithstanding any provision of this act to the  contrary  in  the
  case where all tenants named in a lease have permanently vacated a hous-
  ing accommodation and a family member of such tenant or tenants is enti-
  tled  to  and  executes a renewal lease for the housing accommodation if
  such accommodation continues to be subject to this act after such family
  member vacates, on the occurrence of such vacancy  the  legal  regulated
  rent  shall  be increased by a sum equal to the allowance then in effect
  for vacancy leases[, including the amount allowed by  subdivision  (a-1)
  of  section ten of this act].  Such increase shall be in addition to any
  other increases provided for in this act including an  adjustment  based
  upon  a  major  capital  improvement,  or  a substantial modification or
  increase of dwelling space or services, or installation of new equipment
  or improvements or new furniture or furnishings provided in  or  to  the
  housing  accommodation,  pursuant  to THIS section [six of this act] and
  shall be applicable in like manner to each second subsequent succession.
    S 5. Subdivision 9 of section 5 of chapter 274 of the  laws  of  1946,
  constituting the emergency housing rent control law, as added by chapter
  116 of the laws of 1997, is amended to read as follows:

    9.  Notwithstanding  any  provision of this law to the contrary in the
  case where all tenants occupying the housing accommodation on the effec-
  tive date of this subdivision have vacated the housing accommodation and
  a family member of such vacating tenant or tenants is  entitled  to  and
  continues to occupy the housing accommodation subject to the protections
  of  this  law, if such accommodation continues to be subject to this law
  after such family member vacates, on the occurrence of such vacancy  the
  maximum collectable rent shall be increased by a sum equal to the allow-
  ance  then  in  effect  for  vacancy  leases  for housing accommodations
  covered by the rent stabilization law of nineteen  hundred  sixty-nine[,
  including  the  amount  allowed  by paragraph five-a of subdivision c of
  section 26-511 of such law]. This increase shall be in addition  to  any
  other  increases provided in this law including an adjustment based upon
  a major capital improvement, or a substantial increase  or  decrease  in
  dwelling  space  or  a change in the services, furniture, furnishings or
  equipment provided in the housing  accommodation,  pursuant  to  section
  four  of  this law and shall be applicable in like manner to each second
  subsequent succession.
    S 6. Section 26-403.2 of the administrative code of the  city  of  New
  York, as added by chapter 116 of the laws of 1997, is amended to read as
  follows:

    S  26-403.2  Increase in maximum collectable rent. Notwithstanding any
  provision of this law to the contrary in  the  case  where  all  tenants
  occupying  the  housing  accommodation  on  the  effective  date of this
  section have vacated the housing accommodation and a  family  member  of
  such  vacating  tenant or tenants is entitled to and continues to occupy
  the housing accommodation subject to the protections  of  this  law,  if
  such accommodation continues to be subject to this law after such family
  member  vacates, on the occurrence of such vacancy the maximum collecta-
  ble rent shall be increased by a sum equal  to  the  allowance  then  in
  effect for vacancy leases for housing accommodations covered by the rent

 S. 1040                             3

  stabilization  law of nineteen hundred sixty-nine[, including the amount
  allowed by paragraph five-a of subdivision c of section 26-511  of  such
  law]. This increase shall be in addition to any other increases provided
  for  in  this  law  including  an  adjustment based upon a major capital
  improvement, or a substantial increase or decrease in dwelling space  or
  a  change  in the services, furniture, furnishings or equipment provided
  in the housing accommodation, pursuant to section 26-405 of this law and
  shall be applicable in like manner to each second subsequent succession.
    S 7. The sixth undesignated paragraph of subdivision 5 of section 1 of
  chapter 21 of the laws of 1962, constituting the  local  emergency  rent
  control act, as amended by chapter 82 of the laws of 2003, is amended to
  read as follows:

    Notwithstanding  any  provision of this act to the contrary, any local
  law adopted pursuant to this act shall provide that notwithstanding  any
  provision  of such local law in the case where all tenants occupying the
  housing accommodation on the  effective  date  of  this  paragraph  have
  vacated  the  housing accommodation and a family member of such vacating
  tenant or tenants is entitled to and continues  to  occupy  the  housing
  accommodation  subject  to the protections of such act, if such accommo-
  dation continues to be subject to such  act  after  such  family  member
  vacates,  on the occurrence of such vacancy the maximum collectable rent
  shall be increased by a sum equal to the allowance then  in  effect  for
  vacancy leases for housing accommodations covered by the rent stabiliza-
  tion  law  of nineteen hundred sixty-nine[, including the amount allowed
  by paragraph (5-a) of subdivision c of section 26-511 of such law]. This
  increase shall be in addition to any other  increases  provided  for  in
  this  act  and  shall be applicable in like manner to each second subse-
  quent succession.
    S 8. This act shall take effect immediately; provided that:

    (a) the amendments to section 26-512 of chapter 4 of title 26  of  the
  administrative  code  of  the  city of New York made by section three of
  this act shall expire on the same date as such law expires and shall not
  affect the expiration of such law as provided under  section  26-520  of
  such law; and
    (b) the amendments to section 6 of the emergency tenant protection act
  of  nineteen  seventy-four made by section four of this act shall expire
  on the same date as such act expires and shall not affect the expiration
  of such act as provided in section 17 of chapter  576  of  the  laws  of
  1974; and
    (c)  the amendments to section 5 of the emergency housing rent control
  law made by section five of this act shall expire on the  same  date  as
  such  law  expires  and  shall  not affect the expiration of such law as
  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
  1946; and
    (d)  the amendments to section 26-403.2 of the city rent and rehabili-
  tation law made by section six of this act shall remain  in  full  force
  and effect only as long as the public emergency requiring the regulation
  and control of residential rents and evictions continues, as provided in
  subdivision  3  of section 1 of the local emergency housing rent control
  act; and
    (e) the amendments to subdivision 5 of section 1 of the local emergen-
  cy housing rent control act, made by section seven of  this  act,  shall
  not  affect  the effectiveness of such subdivision and shall cease to be
  in full force and effect pursuant to subdivision 3 of section 1 of  such
  act.