Bill S1040-2013

Relates to rent increases after vacancy of a housing accommodation; repealer

Repeals provisions permitting rent increases after vacancy of a housing accommodation.

Details

Actions

  • Jan 8, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • Jan 9, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 1040 2013-2014 Regular Sessions IN 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
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
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.

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