S1493-2011 Actions

• Jan 4, 2012: REFERRED TO BANKS
• Jan 7, 2011: REFERRED TO BANKS

S1493-2011 Memo

BILL NUMBER:S1493

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 and the emergency housing
rent control law, in relation to
extending the length of time over which major capital
improvement expenses may be recovered

PURPOSE OR GENERAL IDEA OF THE BILL:
Expenses for major capital improvements in rental housing are
currently recovered over seven years in calculating the permissible
monthly rent increase. This bill codifies the MCI as a surcharge to
the legal regulated rent which is separately designated and billed as
such and mandates that the authorized surcharge for MCI's ceases
after the cost of the improvement is recouped.

SUMMARY OF SPECIFIC PROVISIONS:
Establishes a methodology fox determining MCI rent surcharges based on
seven years. MCI's are calculated as a rent surcharge and do not
become part of the base legal regulated rent by which rent increases
are calculated, and are separately designated and billed as such. The
legislation also codifies current practices regarding the annual 64
cap on MCI increases and the methodology for determining MCI
surcharges based on number of rooms. Furthermore, the bill would
require that the rent surcharges authorized for major capital
improvements cease when the cost of the improvement has been recovered.

JUSTIFICATION:
Since the actual cost of the improvement is recovered after seven
years of increased rent collection, this ruling means that tenants
are forced to continue to pay for improvements long after costs have
been fully recovered, and even after they have outlived their useful
life. In addition, most MCI's, such as window replacement or heating
system improvements, create energy savings that further increase the
profitability of MCI's. This bill seeks to balance the conflicting
concerns of maintaining affordable housing and insuring adequate
incentives for investment in MCI's in order to preserve and improve
our housing stock. Since the court permits MCI's to be collected in
perpetuity, landlords are allowed to recoup an amount well beyond
their actual costs and are ensured a reasonable return on their
investment.

LEGISLATIVE HISTORY:
2009-2010: S.745-A/A.1928
2011-2012: S.523-A/A.24.59-A

FISCAL IMPACT: None.

EFFECTIVE DATE:
Immediately, with provisions.

S1493-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1493
 2011-2012 Regular Sessions
 I N  SENATE
 January 7, 2011
 
 Introduced  by  Sens.  PARKER,  DIAZ,  DUANE, HASSELL-THOMPSON, KRUEGER,
 MONTGOMERY, PERKINS, SAMPSON -- read twice and  ordered  printed,  and
 when printed to be committed to the Committee on Banks
 

AN ACT to amend the banking law, in relation to certain withdrawals from
 accounts to which direct deposits have been authorized
 

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

 

Section 1. The banking law is amended by adding a new section  8-a  to
 read as follows:

 

S  8-A.  DIRECT  DEPOSIT  AGREEMENTS WITH EMPLOYERS. NO DIRECT DEPOSIT
 AGREEMENT WITH AN EMPLOYER SHALL  AUTHORIZE  ANY  WITHDRAWALS  FROM  THE
 ACCOUNT  INTO  WHICH SUCH DIRECT DEPOSITS ARE TO BE MADE BY ANYONE OTHER
 THAN THE ACCOUNT OWNER, UNLESS AT LEAST FIFTEEN DAYS' WRITTEN NOTICE  IS
 GIVEN BY THE DEPOSITORY BANKING ORGANIZATION TO SUCH OWNER.  SUCH NOTICE
 SHALL  BE SENT BY REGULAR MAIL TO THE ACCOUNT OWNER'S LAST KNOWN ADDRESS
 ON RECORD.  THIS SECTION SHALL NOT BE CONSTRUED TO  SUPERSEDE  ANY  SUCH
 WITHDRAWAL  OTHERWISE AUTHORIZED BY LAW OR ORDER OF A COURT OF COMPETENT
 JURISDICTION.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01442-01-1

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