S1169-2013 Actions

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

S1169-2013 Memo

BILL NUMBER:S1169

TITLE OF BILL:
An  act  to  amend  the  emergency  tenant  protection act of nineteen
seventy-four, in relation  to  limited-profit  housing  companies  and
other  buildings  or  structures  which  received project-based rental
assistance

PURPOSE OR GENERAL IDEA OF BILL:
This bill  protects  those  tenants  who  live  in  Mitchell-Lama  and
project-based  Section 8 buildings whose owners have bought out of the
Mitchell-Lama program or who no longer have Section 8  contracts  with
the United States Department of Housing and Urban Development (RUD).

SUMMARY OF SPECIFIC PROVISIONS:
This bill authorizes New York City or any city, town or village in the
counties  of  Westchester, Nassau and Rockland to extend the Emergency
Tenant Protection Act (the ETPA) to cover rental buildings which:  (1)
were  owned  by  limited-profit  housing  companies  which voluntarily
dissolved or which dissolve in the future,  or  (2)  were  covered  by
rental  assistance  contracts  between  their  owners and HUD and such
contracts expired or terminated previously or do so in the future. The
bill also prevents owners of such buildings from applying  for  higher
initial  rents  under the ETPA or the New York City Rent Stabilization
Law than were previously charged to their tenants.

Section 1 of this bill sets forth Legislative findings and declaration
of emergency.

Section 2 of the bill amends Section 5 of section 4 of Chapter 576  of
the  laws  of 1974 constituting the emergency tenant protection act of
1974 by adding  a  new  subdivision  c  to  set  rents  for  buildings
completed  after  January  1,  1974  as  the  rents charged on January
1,2007,  as   subsequently   adjusted   by   rent   regulation   laws.
Furthermore,  this  section  clarifies  that the rent setting language
with a base date of January 1, 2007, will supersede any agreement made
between a tenant and landlord whether in a lease or another agreement.

It makes it clear  that  "Unique"  or  "peculiar"  circumstances  rent
increases  authorized  by the New York City rent stabilization law and
the  Emergency  Tenant  Protection   Act   are   not   applicable   to
Mitchell-Lama  or  project  based.  Section  8.  buildings whether the
building were completed before or after January 1, 1974.

Section 2 sets forth an effective date of immediate and provides  that
the  law  applies  to  housing  accommodations located in buildings or
structures-owned by housing companies that dissolved  on,  before,  or
after  such  date  and  to  housing  accommodations  in  buildings  or
structures that were covered projects and  had  contracts  for  rental
assistance  that  expired or were terminated on, before, or after such
date; provided that the amendments  to  section  5  of  the  emergency
tenant  protection act of nineteen seventy-four made by section two 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.


JUSTIFICATION:
Many  limited-profit  housing companies are exercising their option to
buy-out of the Mitchell-Lama program. Likewise, HUD contracts with the
owners of rental buildings for  Section  8  assistance  are  expiring,
being  terminated  or not being renewed Existing middle income tenants
in Mitchell-Lama and Section 8 housing are faced with eviction if they
cannot afford new market rents.  Extending the ETPA to these buildings
will ensure that existing tenants can continue to afford  to  live  in
their  current  apartments.    ETPA coverage will also enable building
owners to more readily be eligible for  rent  increases  under  annual
ETPA guidelines.

LEGISLATIVE HISTORY:
2011/12 - S.1010  - Died - Housing
2009/10 - S.3326D - Died - Housing
2008    - S.5284  - Died - Housing

FISCAL IMPLICATIONS:
Most costs of administration of ETPA and rent stabilization are
covered by per unit fees charged to property owners.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to housing
accommodations located in buildings or structures owned by housing
companies that dissolved on, before or after such date and to housing
accommodations in buildings or structures that were covered projects and
had contracts for rental assistance that expired or were terminated on,
before or after such date; provided that the amendments to section 5 of
the emergency tenant protection act of nineteen seventy-four made by
section two 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.

S1169-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1169
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sens.  STEWART-COUSINS,  ADAMS,  ADDABBO,  AVELLA, DIAZ,
 DILAN, HASSELL-THOMPSON, KRUEGER, PARKER, PERALTA,  PERKINS,  SERRANO,
 SQUADRON, STAVISKY -- read twice and ordered printed, and when printed
 to be committed to the Committee on Housing, Construction and Communi
 ty Development
 AN  ACT  to amend the emergency tenant protection act of nineteen seven
 ty-four, in relation to limited-profit  housing  companies  and  other
 buildings or structures which received project-based rental assistance
 

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

 

Section 1.   Legislative findings and declaration  of  emergency.  The
 legislature  hereby finds and declares that the serious public emergency
 which led to the enactment of the existing laws  regulating  residential
 rents  and  evictions  continues  to  exist; that such laws would better
 serve the public interest if certain changes were made thereto,  includ
 ing  extending  to  certain  cities, towns and villages the authority to
 provide for the regulation of rents and evictions with regard to housing
 accommodations that cease or have ceased to  be  regulated  pursuant  to
 article 2 of the private housing finance law, known as the Mitchell-Lama
 law,  or  pursuant to project-based section eight contracts entered into
 with the federal government.
 The legislature further  recognizes  that  severe  disruption  of  the
 rental  housing market has occurred and threatens to be exacerbated as a
 result of the abrupt termination of rent and  eviction  regulation  when
 buildings  exit  the Mitchell-Lama program or when buildings cease to be
 subject to project-based section  eight  contracts.  The  situation  had
 permitted  speculative  and profiteering practices and has brought about
 the loss of vital  and  irreplaceable  affordable  housing  for  working
 persons and families.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02594-01-3
 
       S. 1169                             2
 The legislature therefore declares that in order to prevent uncertain
 ty,  potential  hardship  and  dislocation  of tenants living in housing
 accommodations subject to  government  regulations  as  to  rentals  and
 continued  occupancy  as  well as those not subject to such regulations,
 the  provisions  of this act are necessary to protect the public health,
 safety and general welfare. The necessity in the public interest for the
 provisions hereinafter enacted is hereby declared as a matter of  legis
 lative determination.
 

S 2.

Section 5 of section 4 of chapter 576 of the laws of 1974 consti
 tuting  the  emergency tenant protection act of nineteen seventy-four is
 amended by adding a new subdivision c to read as follows:

 C. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NOTHING  SHALL
 PREVENT  THE  DECLARATION  OF  AN EMERGENCY PURSUANT TO SECTION THREE OF
 THIS ACT FOR RENTAL  HOUSING  ACCOMMODATIONS  LOCATED  IN  BUILDINGS  OR
 STRUCTURES  COMPLETED  OR  SUBSTANTIALLY RENOVATED AS FAMILY UNITS ON OR
 AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-FOUR: (I)  WHICH  HAVE  OR
 HAD BEEN OWNED, LEASED OR OPERATED BY A COMPANY ESTABLISHED OR OPERATING
 UNDER ARTICLE TWO OF THE PRIVATE HOUSING FINANCE LAW, OTHER THAN A MUTU
 AL  COMPANY,  AND  WHICH ARE NO LONGER OWNED, LEASED OR OPERATED BY SUCH
 COMPANY BY REASON OF A VOLUNTARY DISSOLUTION PURSUANT TO  SECTION  THIR
 TY-FIVE  OF  SUCH  LAW  OR  (II)  WHICH WERE DEFINED AS COVERED PROJECTS
 PURSUANT TO SECTION 8 OF THE UNITED STATES HOUSING ACT OF NINETEEN THIR
 TY-SEVEN, AS AMENDED, OR ANY  SUCCESSOR  STATUTE,  AND  ANY  REGULATIONS
 PROMULGATED  THEREUNDER  IN WHICH RENTAL HOUSING ACCOMMODATIONS RECEIVED
 PROJECT-BASED RENTAL ASSISTANCE FROM THE  UNITED  STATES  DEPARTMENT  OF
 HOUSING  AND  URBAN DEVELOPMENT PURSUANT TO CONTRACTS WITH THE OWNERS OF
 SUCH BUILDINGS OR STRUCTURES WHICH EXPIRED  OR  WERE  TERMINATED.    THE
 INITIAL  LEGAL  REGULATED  RENT  FOR  HOUSING  ACCOMMODATIONS LOCATED IN
 BUILDINGS OR STRUCTURES THAT HAVE OR HAD BEEN OWNED, LEASED OR  OPERATED
 BY  HOUSING COMPANIES OR THAT WERE COVERED PROJECTS PREVIOUSLY REGULATED
 UNDER THE PRIVATE HOUSING FINANCE LAW OR UNDER FEDERAL LAW, SHALL BE THE
 RENT CHARGED TO AND PAID BY THE TENANT IN OCCUPANCY  ON  JANUARY  FIRST,
 TWO  THOUSAND SEVEN OR, FOR ACCOMMODATIONS VACANT ON SUCH DATE, THE MOST
 RECENT RENT CHARGED TO AND PAID BY A TENANT PRIOR TO SUCH DATE,  INCLUD
 ING  ANY INCOME-RELATED SURCHARGES, AS ADJUSTED BY ALL APPLICABLE GUIDE
 LINES INCREASES AND OTHER INCREASES AUTHORIZED BY  LAW,  NOTWITHSTANDING
 ANY  WRITTEN  LEASE  OR  AGREEMENT  BETWEEN  THE TENANT AND THE LANDLORD
 ESTABLISHING OR AGREEING TO ANY INCREASES IN RENT ON  OR  AFTER  JANUARY
 FIRST,  TWO  THOUSAND  SEVEN,  PROVIDED NO LANDLORD SHALL BE REQUIRED TO
 REFUND ANY RENT PAID BY A TENANT IN EXCESS OF SUCH ADJUSTED RENT.
 

S 3. The provisions of subdivision a of section  9  of  the  emergency
 tenant  protection  act  of nineteen seventy-four or of subdivision a of
 section 26-513 of the administrative code of the city of New York  shall
 not apply to any housing accommodation which became subject to the emer
 gency  tenant  protection  act  of nineteen seventy-four pursuant to the
 provisions of subdivision c of section 5 of section 4 of chapter 576  of
 the  laws  of  1974, as added by section two of this act, or to any such
 housing  accommodation  otherwise  subject  to  the   emergency   tenant
 protection  act  of nineteen seventy-four by reason of its location in a
 building completed or substantially renovated as family units  prior  to
 January first, nineteen hundred seventy-four.
 

S 4. This act shall take effect immediately and shall apply to housing
 accommodations  located  in  buildings  or  structures  owned by housing
 companies that dissolved on, before or after such date  and  to  housing
 accommodations in buildings or structures that were covered projects and
 had  contracts for rental assistance that expired or were terminated on,
 
       S. 1169                             3
 before or after such date; provided that the amendments to section 5  of
 the  emergency  tenant  protection  act of nineteen seventy-four made by
 section two 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.

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