NY State Senate Bill 2015-S2855

Senate Bill S2855

2015-2016 Legislative Session

Sets criteria for approval of rent increases resulting from major capital improvements in certain dwellings

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to housing, construction and community development
Jan 29, 2015	referred to housing, construction and community development

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2015-S2855 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-405 & 26-511, NYC Ad Cd; amd §6, Emerg Ten Prot Act of 1974
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5220
2011-2012: S436
2013-2014: S3173
2017-2018: S3713

2015-S2855 (ACTIVE) - Summary

Establishes criteria for approval of rent increases to rent regulated property resulting from major capital improvements to insure that the work performed is an enhancement or upgrade to a housing accommodation or service therein and is not merely repair or replacement to existing services; prohibits approval of a major capital improvement rent increase where any outstanding hazardous violations exist.

2015-S2855 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2855

TITLE OF BILL:

An act to amend the administrative code of the city of New York and
the emergency tenant protection act of nineteen seventy-four, in
relation to approval of major capital improvement rent increases

PURPOSE:

This bill would establish a regulatory framework for the approval of
rent increases to rent regulated property as a result of major capital
improvements and prevent landlords from receiving a financial windfall
from major capital improvements funded by the New York State Energy
and Development Authority (NYSERDA).

SUMMARY OF PROVISIONS:

Sections 1, 2, and 3 - Establish criteria for approval of rent
increases to rent regulated property resulting from major capital
improvements. The criteria will be used to ensure that the work
performed is an enhancement or upgrade to a housing accommodation or
service, and is not merely a repair or replacement of existing
services. It also prohibits approval of major capital improvement rent
increases when any outstanding hazardous violations exist.

Section 4 - Amends subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974 by adding a new paragraph 6 to exclude NYSERDA
funded projects from receiving adjustments for major capital
improvements.

Section 3 - Amends paragraph 1 of subdivision g of section 26-405 of
the administrative code of the city of New York by adding a new
subparagraph m to exclude NYSERDA funded projects.

Section 6 - Effective date.

JUSTIFICATION:

Many landlords currently utilize major capital improvement surcharges
as an unscrupulous means to raise the rent of their units, unfairly
burdening their tenants. Although some MCI surcharges are legitimate,
many landlords apply for, and arc granted, the MCI surcharge for work
that is simply routine maintenance, and not an actual improvement.
This is not the intent of the MCI program. The lack of statutory
guidelines to direct the division of housing and Community Renewal as
to the criteria for approval of MCI surcharges is a major source of
the problem.

In addition to MCI surcharges approved by the Division of Housing and
Community Renewal, the NYSERDA Multi-family Performance Program offers
landlords incentives to invest in energy-efficient building upgrades,
including implementing environmentally friendly-measures to address
specific energy and operational needs of buildings. In many cases
landlords have filed applications with both the Division of Housing
and Community Renewal for MCI rent increases for capital work that is
part of their jurisdiction for receiving NYSERDA funds. This practice


of double-dipping, by taking advantage of two different incentives for
the same work, violates the intent of the incentive provisions and, if
permitted, results in a windfall to landlords. This bill would clarify
that such double-dipping is not permitted.

FISCAL IMPACT ON THE STATE:

None.

EFFECTIVE DATE:

This act shall take effect, immediately, provided that (a) the
amendment to section 26-405 or the city rent and - rehabilitation law
made by section one and five of this act shall remain in full force
and effect only so 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

(b) and provided further that the amendment to section 26-511 of the
rent stabilization law of nineteen hundred sixty-nine made by section
two 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, as from time to time amended and provided further
that(c) the amendment to section 6 of the emergency tenant protection
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, as from time to time amended.

2015-S2855 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2855

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 29, 2015
                               ___________

Introduced  by Sens. KRUEGER, HOYLMAN, MONTGOMERY, PERALTA -- 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 and  the
  emergency  tenant protection act of nineteen seventy-four, in relation
  to approval of major capital improvement rent increases

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

  Section  1.  Section  26-405 of the administrative code of the city of
New York is amended by adding a new subdivision n to read as follows:
  N. (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL BE APPROVED  BY
THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL UNLESS THE WORK PERFORMED
IS AN ENHANCEMENT OR UPGRADE TO A HOUSING ACCOMMODATION OR SERVICE THER-
EIN; OR IS AN ADDITION  TO  SUCH  HOUSING  ACCOMMODATION  AND  OTHERWISE
ELIGIBLE  ACCORDING  TO  THE PREREQUISITES FOR MAJOR CAPITAL IMPROVEMENT
RENT INCREASES.   ANY REPAIR OR  REPLACEMENT  INTENDED  TO  MAINTAIN  AN
EXISTING  SERVICE  SHALL NOT BE ELIGIBLE FOR A MAJOR CAPITAL IMPROVEMENT
RENT INCREASE.
  (2) NO APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT  INCREASE  MAY
BE  APPROVED  IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE
TIME OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
REGULATIONS OF THE DIVISION OF HOUSING  AND  COMMUNITY  RENEWAL  OR  ANY
AGENCY  ADMINISTERING  AND ENFORCING A BUILDING CODE IN THE JURISDICTION
IN WHICH THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY  THE  DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
ALLEVIATION  OF  THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE
PROVISIONS OF THIS SECTION. EXCEPT IN THE  CASE  OF  EMERGENCY  OR  GOOD
CAUSE,  THE  OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS
BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL A STATEMENT CONTAINING INFORMATION  OUTLINING  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04340-01-5

S. 2855                             2

SCOPE  OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDA-
VIT SETTING FORTH THE FOLLOWING INFORMATION:
  (A)  EVERY  OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST IN THE
PROPERTY OR ENTITY OWNING THE PROPERTY OR  SPONSORING  THE  IMPROVEMENT;
AND
  (B)  A  STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE YEARS
PRIOR TO THE IMPROVEMENT, BEEN FOUND  TO  HAVE  HARASSED  OR  UNLAWFULLY
EVICTED  TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY UNDER
THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY  STATE  OR
LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.
  UPON  RECEIPT  OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED FOR HEREIN,
THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE  TENANTS
IN  OCCUPANCY  IN SUCH BUILDINGS WITH SUCH INFORMATION.  THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL SHALL, IN ADDITION,  IMPLEMENT  PROCEDURES
INCLUDING,  BUT  NOT  LIMITED TO, ELICITING TENANT COMMENTS TO DETERMINE
WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
TORILY COMPLETED. NO  MAJOR  CAPITAL  IMPROVEMENT  RENT  INCREASE  SHALL
BECOME  EFFECTIVE  UNTIL  ANY DEFECTIVE OR DEFICIENT REHABILITATION WORK
HAS BEEN CURED.
  S 2. Subdivision c of section 26-511 of the administrative code of the
city of New York is amended by adding a new paragraph  6-b  to  read  as
follows:
  (6-B) PROVIDES CRITERIA WHEREBY THE COMMISSIONER MAY ACT UPON APPLICA-
TION  BY  OWNERS  FOR  INCREASES  IN  EXCESS  OF  THE LEVEL OF FAIR RENT
INCREASE ESTABLISHED UNDER THIS LAW PROVIDED HOWEVER, THAT SUCH CRITERIA
SHALL PROVIDE THAT:
  (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL BE APPROVED BY THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL UNLESS THE WORK  PERFORMED  IS
AN ENHANCEMENT OR UPGRADE TO A HOUSING ACCOMMODATION OR SERVICE THEREIN;
OR  IS  AN ADDITION TO SUCH HOUSING ACCOMMODATION AND OTHERWISE ELIGIBLE
ACCORDING TO  THE  PREREQUISITES  FOR  MAJOR  CAPITAL  IMPROVEMENT  RENT
INCREASES.    ANY REPAIR OR REPLACEMENT INTENDED TO MAINTAIN AN EXISTING
SERVICE SHALL NOT BE ELIGIBLE  FOR  A  MAJOR  CAPITAL  IMPROVEMENT  RENT
INCREASE.
  (2)  NO  APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT INCREASE MAY
BE APPROVED IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS  AT  THE
TIME OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
REGULATIONS  OF  THE  DIVISION  OF  HOUSING AND COMMUNITY RENEWAL OR ANY
AGENCY ADMINISTERING AND ENFORCING A BUILDING CODE IN  THE  JURISDICTION
IN  WHICH  THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
ALLEVIATION OF THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT  WITH  THE
PROVISIONS  OF  THIS  SECTION.  EXCEPT  IN THE CASE OF EMERGENCY OR GOOD
CAUSE, THE OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN  THIRTY  DAYS
BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
AND  COMMUNITY  RENEWAL A STATEMENT CONTAINING INFORMATION OUTLINING THE
SCOPE OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN  AFFIDA-
VIT SETTING FORTH THE FOLLOWING INFORMATION:
  (A)  EVERY  OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST IN THE
PROPERTY OR ENTITY OWNING THE PROPERTY OR  SPONSORING  THE  IMPROVEMENT;
AND
  (B)  A  STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE YEARS
PRIOR TO THE IMPROVEMENT, BEEN FOUND  TO  HAVE  HARASSED  OR  UNLAWFULLY
EVICTED  TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY UNDER
THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY  STATE  OR
LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.

S. 2855                             3

  UPON  RECEIPT  OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED FOR HEREIN,
THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE  TENANTS
IN  OCCUPANCY  IN SUCH BUILDINGS WITH SUCH INFORMATION.  THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL SHALL, IN ADDITION,  IMPLEMENT  PROCEDURES
INCLUDING,  BUT  NOT  LIMITED TO, ELICITING TENANT COMMENTS TO DETERMINE
WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
TORILY COMPLETED. NO  MAJOR  CAPITAL  IMPROVEMENT  RENT  INCREASE  SHALL
BECOME  EFFECTIVE  UNTIL  ANY DEFECTIVE OR DEFICIENT REHABILITATION WORK
HAS BEEN CURED.
  S 3. Section 6 of section 4 of  chapter  576  of  the  laws  of  1974,
constituting  the  emergency  tenant protection act of nineteen seventy-
four, is amended by adding a new subdivision d-1 to read as follows:
  D-1. (1) NO MAJOR CAPITAL IMPROVEMENT RENT INCREASE WILL  BE  APPROVED
BY  THE  DIVISION  OF  HOUSING  AND  COMMUNITY  RENEWAL  UNLESS THE WORK
PERFORMED IS AN ENHANCEMENT OR UPGRADE TO  A  HOUSING  ACCOMMODATION  OR
SERVICE  THEREIN;  OR  IS  AN ADDITION TO SUCH HOUSING ACCOMMODATION AND
OTHERWISE ELIGIBLE ACCORDING TO  THE  PREREQUISITES  FOR  MAJOR  CAPITAL
IMPROVEMENT RENT INCREASES.  ANY REPAIR OR REPLACEMENT INTENDED TO MAIN-
TAIN  AN  EXISTING  SERVICE  SHALL  NOT  BE ELIGIBLE FOR A MAJOR CAPITAL
IMPROVEMENT RENT INCREASE.
  (2) NO APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT  INCREASE  MAY
BE  APPROVED  IF THERE EXIST ANY OUTSTANDING HAZARDOUS VIOLATIONS AT THE
TIME OF THE CONSIDERATION OF SUCH APPLICATION, AS DETERMINED PURSUANT TO
REGULATIONS OF THE DIVISION OF HOUSING  AND  COMMUNITY  RENEWAL  OR  ANY
AGENCY  ADMINISTERING  AND ENFORCING A BUILDING CODE IN THE JURISDICTION
IN WHICH THE PROPERTY IS LOCATED, UNLESS IT IS DETERMINED BY  THE  DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL THAT SUCH WORK IS ESSENTIAL TO THE
ALLEVIATION  OF  THE VIOLATIONS AND SUCH APPROVAL IS CONSISTENT WITH THE
PROVISIONS OF THIS SECTION. EXCEPT IN THE  CASE  OF  EMERGENCY  OR  GOOD
CAUSE,  THE  OWNER OF THE PROPERTY SHALL FILE, NOT LESS THAN THIRTY DAYS
BEFORE THE COMMENCEMENT OF THE IMPROVEMENT, WITH THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL A STATEMENT CONTAINING INFORMATION  OUTLINING  THE
SCOPE  OF WORK, EXPECTED DATE OF COMPLETION FOR SUCH WORK AND AN AFFIDA-
VIT SETTING FORTH THE FOLLOWING INFORMATION:
  (A) EVERY OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST  IN  THE
PROPERTY  OR  ENTITY  OWNING THE PROPERTY OR SPONSORING THE IMPROVEMENT;
AND
  (B) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE  FIVE  YEARS
PRIOR  TO  THE  IMPROVEMENT,  BEEN  FOUND TO HAVE HARASSED OR UNLAWFULLY
EVICTED TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY  UNDER
THE  PENAL  LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR
LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION.
  UPON RECEIPT OF THE SCOPE OF WORK AND AFFIDAVIT PROVIDED  FOR  HEREIN,
THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE THE TENANTS
IN OCCUPANCY IN SUCH BUILDINGS WITH SUCH INFORMATION.   THE DIVISION  OF
HOUSING  AND  COMMUNITY RENEWAL SHALL, IN ADDITION, IMPLEMENT PROCEDURES
INCLUDING, BUT NOT LIMITED TO, ELICITING TENANT  COMMENTS  TO  DETERMINE
WHETHER MAJOR CAPITAL IMPROVEMENT REHABILITATION WORK HAS BEEN SATISFAC-
TORILY  COMPLETED.  NO  MAJOR  CAPITAL  IMPROVEMENT  RENT INCREASE SHALL
BECOME EFFECTIVE UNTIL ANY DEFECTIVE OR  DEFICIENT  REHABILITATION  WORK
HAS BEEN CURED.
  S  4.  Subdivision  d  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  is  amended  by  adding a new paragraph 6 to read as
follows:

S. 2855                             4

  (6) NOTWITHSTANDING PARAGRAPH THREE OF THIS SUBDIVISION THERE SHALL BE
NO ADJUSTMENT FOR ANY MAJOR CAPITAL IMPROVEMENT FUNDED IN ANY PART  FROM
MONEYS  PROVIDED  BY  THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY.
  S 5. Paragraph 1 of subdivision g of section 26-405 of the administra-
tive  code  of  the city of New York is amended by adding a new subpara-
graph (p) to read as follows:
  (P) NOTWITHSTANDING SUBPARAGRAPH (G) OR (K) OF THIS  PARAGRAPH,  THERE
SHALL  BE  NO  ADJUSTMENT  FOR  ANY MAJOR CAPITAL IMPROVEMENT OR FOR ANY
OTHER EXPENDITURES TO IMPROVE, RESTORE OR  PRESERVE  THE  QUALITY  OF  A
STRUCTURE IF SUCH MAJOR CAPITAL IMPROVEMENT OR SUCH OTHER EXPENDITURE IS
FUNDED  IN  ANY  PART  FROM MONEYS PROVIDED BY THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY.
  S 6. This act shall take effect immediately, provided that:
  (a) the amendments to section 26-405 of the city  rent  and  rehabili-
tation  law  made  by  sections one and five of this act shall remain in
full force and effect only so 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;
  (b) the amendment to section 26-511 of the rent stabilization  law  of
nineteen hundred sixty-nine made by section two 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, as from time
to time amended; and
  (c) the amendments to section 6 of the emergency tenant protection act
of nineteen seventy-four made by sections three and  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, as from time to time amended.

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Senate Bill S2855

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

Jesse Hamilton

Brad Hoylman-Sigal

Velmanette Montgomery

Jose Peralta

2015-S2855 (ACTIVE) - Details

2015-S2855 (ACTIVE) - Summary

2015-S2855 (ACTIVE) - Sponsor Memo

2015-S2855 (ACTIVE) - Bill Text download pdf

Comments