Requires the rent guidelines board to take other sources of income received by landlords from commercial rents and unregulated residential units into account when establishing annual calculations.
TITLE OF BILL: An act to amend the administrative code of the city of New York, in relation to requiring the rent guidelines board to take other sources of income received by landlords from commercial rents and unregulated residential units into account when establishing annual calculations
PURPOSE OR GENERAL IDEA OF BILL: This bill would require the rent guidelines board to consider landlord profits in addition to landlord costs when determining annual guidelines for rent adjustments.
SUMMARY OF SPECIFIC PROVISIONS: This bill amends section 26-510 of the administrative code of the city of New York.
JUSTIFICATION: The New York City Rent Guidelines Board (RGB) is mandated to establish rent adjustments for the nearly one million dwelling units subject to the Rent Stabilization Law in New York City. To determine the adjustment, the RGB holds a series of public meetings to hear testimony from owners and tenants, but under the current law the Board is instructed only to consider factors that contribute to landlord costs, not their overall profit. To determine landlord costs, the RGB depends on statements from property owners such as the Real Property Income and Expense (RPIE) statements, but an audit of RPIE statements collected from rent-stabilized buildings revealed that on average, operation and maintenance costs were exaggerated by 8%.
This bill would put tenants and landlords on equal footing before the law by requiring the RGB to also consider all sources of income, including rents from unregulated residential tenants and commercial units. Middle and low income citizens who depend on rent-stabilized apartments are being priced out of New York City as the RGB raises rents each year based on exaggerated cost reports from landlords. The RGB needs a more balanced picture of what is actually happening in the rental market in order to make fair determinations about rent adjustments.
PRIOR LEGISLATIVE HISTORY: A.7240 of 2007-08 A.5450 of 2009-10
FISCAL IMPLICATIONS: Undetermined.
EFFECTIVE DATE: Immediate upon passage, with provisions.
STATE OF NEW YORK ________________________________________________________________________ 1805 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sens. ESPAILLAT, HASSELL-THOMPSON, 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, in relation to requiring the rent guidelines board to take other sources of income received by landlords from commercial rents and unregulated residential units into account when establishing annual calculations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 3 of subdivision b of section 26-510 of the administrative code of the city of New York is renumbered paragraph 4 and a new paragraph 3 is added to read as follows: (3) ALL OTHER SOURCES OF INCOME FROM BUILDINGS CONTAINING HOUSING ACCOMMODATIONS SUBJECT TO THIS LAW INCLUDING, BUT NOT LIMITED TO, COMMERCIAL RENTS AND RENT FROM UNREGULATED RESIDENTIAL UNITS, AND THE EXTENT TO WHICH SUCH CHANGES OFFSET CHANGES IN COST, S 2. This act shall take effect immediately, provided, however, that the amendments to section 26-510 of chapter 4 of title 26 of the admin- istrative code of the city of New York made by section one 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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02142-01-3