Bill S1806-2013

Prohibits a county rent guidelines board from establishing rent adjustments for class A dwelling units based on certain considerations

Prohibits a county rent guidelines board from establishing rent adjustments for class A dwelling units based on the current rental cost of a unit or on the amount of time that has elapsed since another rent increase authorized was authorized.

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:S1806

TITLE OF BILL: An act to amend the emergency tenant protection act of nineteen seventy-four and the administrative code of the city of New York, in relation to prohibiting a county rent guidelines board from establishing rent adjustments for class A dwelling units based on certain considerations

PURPOSE OR GENERAL IDEA OF BILL: To prohibit a county rent guidelines board from establishing rent adjustments for class A dwelling units based on the current rental cost of a unit or on the amount of time that has elapsed since another rent increase authorized was authorized.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the opening paragraph of subdivision b of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, as amended by chapter 403 of the laws of 1983.

Section 2 amends subdivision b of section 26-510 of the administrative code of the city of New York.

Section 3 establishes the effective date.

JUSTIFICATION: In 2008, New York city's Rent Guidelines Board unilaterally decided that landlords of rent-subsidized apartments where the tenant was paying less than $1000 monthly rent and had lived in the apartment for more than six years were allowed to levy a surcharge on those tenants' rents. Suit was brought by the Legal Aid society and in January 2010, the Supreme Court of New York County declared that the Rent Guidelines Board did not have authority to impose supplemental rent increases on long-term tenants of apartments renting for less than $1000 per month if not authorized by the legislature. In June 2010, the Appellate division followed suit, and upheld this ruling, Shortly thereafter, on appeal by the Rent Guidelines Board, the New York State Court of Appeals reversed both lower courts, and in Casado v. Markus, decided that the Rent Guidelines Hoard had the authority to grant supplemental increases in the absence of legislative authorization. This bill will correct the Court of Appeal's decision in Casado, which infringes upon the role of the legislature as the sole authority to create new classes of housing accommodations and/or create rent adjustments. It will also prohibit these supplemental increases, which affect lower-income tenants in what essentially amounts to a "poor tax."

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately; provided that the amendments

to section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy four, made by section one of this act, shall not affect the expiration of such section and shall be deemed to expire therewith; and provided further that the amendments to subdivision b of section 26-510 of the administrative code of the city of New York made by section two of this act, shall not affect the expiration of such subdivision and shall be deemed to expire therewith.


Text

STATE OF NEW YORK ________________________________________________________________________ 1806 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sens. ESPAILLAT, SQUADRON -- read twice and ordered print- ed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the emergency tenant protection act of nineteen seven- ty-four and the administrative code of the city of New York, in relation to prohibiting a county rent guidelines board from establish- ing rent adjustments for class A dwelling units based on certain considerations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of subdivision b of section 4 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, as amended by chapter 403 of the laws of 1983, is amended to read as follows: A county rent guidelines board shall establish annually guidelines for rent adjustments which, at its sole discretion may be varied and differ- ent for and within the several zones and jurisdictions of the board, and in determining whether rents for housing accommodations as to which an emergency has been declared pursuant to this act shall be adjusted, shall consider among other things (1) the economic condition of the residential real estate industry in the affected area including such factors as the prevailing and projected (i) real estate taxes and sewer and water rates, (ii) gross operating maintenance costs (including insurance rates, governmental fees, cost of fuel and labor costs), (iii) costs and availability of financing (including effective rates of inter- est), (iv) over-all supply of housing accommodations and over-all vacan- cy rates, (2) relevant data from the current and projected cost of living indices for the affected area, (3) such other data as may be made available to it. As soon as practicable after its creation and thereaft- er not later than July first of each year, a rent guidelines board shall
file with the state division of housing and community renewal its find- ings for the preceding calendar year, and shall accompany such findings with a statement of the maximum rate or rates of rent adjustment, if any, for one or more classes of accommodation subject to this act, authorized for leases or other rental agreements commencing during the next succeeding twelve months. The standards for rent adjustments may be applicable for the entire county or may be varied according to such zones or jurisdictions within such county as the board finds necessary to achieve the purposes of this subdivision. A COUNTY RENT GUIDELINES BOARD SHALL NOT ESTABLISH ANNUAL GUIDELINES FOR RENT ADJUSTMENTS BASED ON THE CURRENT RENTAL COST OF A UNIT OR ON THE AMOUNT OF TIME THAT HAS ELAPSED SINCE ANOTHER RENT INCREASE WAS AUTHORIZED PURSUANT TO THIS CHAPTER. S 2. Subdivision b of section 26-510 of the administrative code of the city of New York is amended to read as follows: b. The rent guidelines board shall establish annually guidelines for rent adjustments, and in determining whether rents for housing accommo- dations subject to the emergency tenant protection act of nineteen seventy-four or this law shall be adjusted shall consider, among other things (1) the economic condition of the residential real estate indus- try in the affected area including such factors as the prevailing and projected (i) real estate taxes and sewer and water rates, (ii) gross operating maintenance costs (including insurance rates, governmental fees, cost of fuel and labor costs), (iii) costs and availability of financing (including effective rates of interest), (iv) over-all supply of housing accommodations and over-all vacancy rates, (2) relevant data from the current and projected cost of living indices for the affected area, (3) such other data as may be made available to it. Not later than July first of each year, the rent guidelines board shall file with the city clerk its findings for the preceding calendar year, and shall accompany such findings with a statement of the maximum rate or rates of rent adjustment, if any, for one or more classes of accommodations subject to this law, authorized for leases or other rental agreements commencing on the next succeeding October first or within the twelve months thereafter. Such findings and statement shall be published in the City Record. THE RENT GUIDELINES BOARD SHALL NOT ESTABLISH ANNUAL GUIDELINES FOR RENT ADJUSTMENTS BASED ON THE CURRENT RENTAL COST OF A UNIT OR ON THE AMOUNT OF TIME THAT HAS ELAPSED SINCE ANOTHER RENT INCREASE WAS AUTHORIZED PURSUANT TO THIS TITLE. S 3. This act shall take effect immediately; provided that the amend- ments to section 4 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy- four, made by section one of this act, shall not affect the expiration of such section and shall be deemed to expire therewith; and provided further that the amendments to subdivision b of section 26-510 of the administrative code of the city of New York made by section two of this act, shall not affect the expiration of such subdivision and shall be deemed to expire therewith.

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