Bill S3176-2013

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association; defines demolish.

Details

Actions

  • Jan 8, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • Jan 31, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Memo

BILL NUMBER:S3176

TITLE OF BILL: An act to amend the administrative code of the city of New York, in relation to renewal of a lease under the stabilization code

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to clarify the original intent of the Rent Stabilization Law and to prohibit landlords from circumventing the demolition provision included in the Rent Stabilization Law. Landlords are attempting to circumvent rent stabilization by applying for a demolition permit in order to move tenants out; when their real purpose is to do a gut rehab so they can lease the apartments for higher rents.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of this bill constitutes a provision where the owner has established to the satisfaction of the division of housing and community renewal after a hearing that he or she intends in good faith to demolish the building and has obtained a permit thereof from the department of buildings.

Section 2 provides for an immediate effective date with qualifications.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: This bill would amend Subparagraph (a) of paragraph 9 of subdivision c of section 26-511 of the administrative code of the city of New York, constituting a provision of the rent stabilization law of nineteen hundred sixty-nine.

JUSTIFICATION: It is in the State's economic and social interest that an adequate supply of affordable housing be available. But as development pressures continue to drive the competitive real estate market in New York City and surrounding counties, there has been an increasing loss of affordable housing units. Eager to increase profits on rent stabilized housing units in particular, building owners have utilized a variety of means to turn these units into more profitable luxury housing or commercial units. The result has been that each year, thousands of rent-stabilized units are permanently removed from the housing stock. This trend continues as owners seek new ways to manipulate the letter and spirit of the law in order to more expeditiously eliminate the rent stabilized units in a building. This bill addresses one method by which owners axe increasingly attempting to get rid of rent-stabilized housing. While the Legislature intended that the demolition provision of the Rent Stabilization law allow room for owners to demolish old, dilapidated and dangerous housing in order to replace it with new, safe housing, some owners are attempting to redefine demolition as simple renovations where entire floors are left intact, outer walls are untouched, or major structural elements remain in place. Such uses of the term "demolition" are inconsistent with both its common meaning and the meaning that was intended by the Legislature. This bill will clarify the definition of "demolition", making it consistent with its common and intended definitions. Accordingly, it will be clear that owners shall not be permit ted to eliminate rent-stabilized housing units by manipulating the demolition provision in this manner.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall apply to any action or proceeding pending in any court and to any application, complaint, or proceeding pending before an administrative agency on such effective date, as well as to any action or proceeding commenced thereafter; provided, however that the amendments to subparagraph (a) of paragraph 9 of subdivision c of section 26-511 of the rent stabilization law of nineteen hundred sixty-nine made by section one of this act shall expire of such law as provided under section 26-520 of the administrative code of the city of New York.


Text

STATE OF NEW YORK ________________________________________________________________________ 3176 2013-2014 Regular Sessions IN SENATE January 31, 2013 ___________
Introduced by Sens. KRUEGER, AVELLA -- 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 renewal of a lease under the stabilization code THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (a) of paragraph 9 of subdivision c of section 26-511 of the administrative code of the city of New York is amended to read as follows: (a) (1) where [he or she] THE OWNER HAS ESTABLISHED TO THE SATISFAC- TION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, AFTER A HEARING AT WHICH ALL PARTIES MAY PRESENT EVIDENCE THAT THE SUBJECT BUILDING IS IN A SUBSTANDARD OR SERIOUSLY DETERIORATED CONDITION, AND THAT THE OWNER intends in good faith to demolish the building and [has obtained a permit therefor from the department of buildings] SUBMITS PROOF PRIOR TO FILING THE APPLICATION WITH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL THAT PLANS AND IF POSSIBLE, THE NECESSARY PERMITS, FOR THE UNDERTAKING HAVE BEEN APPROVED BY AND OBTAINED FROM THE DEPARTMENT OF BUILDINGS. SUCH APPLICATION SHALL BE FILED AT LEAST NINETY DAYS PRIOR TO THE EXPIRATION OF THE LEASE TERM; FOR THE PURPOSE OF THIS SUBPARA- GRAPH, "DEMOLISH" MEANS THE COMPLETE RAZING OF THE ENTIRE BUILDING, INCLUDING ALL EXTERIOR WALLS, IN ORDER TO CONSTRUCT A NEW BUILDING WITH THE SAME OR GREATER NUMBER OF RENTAL HOUSING UNITS; (2) THE ORDER GRANTING THE OWNER'S DEMOLITION APPLICATION SHALL PROVIDE THAT THE OWNER MUST, AT THE TENANT'S OPTION, EITHER: (I) RELO- CATE THE TENANT TO AN EQUIVALENT OR SUPERIOR RENT STABILIZED HOUSING ACCOMMODATION IN A CLOSELY PROXIMATE AREA, OR IF A NEW RESIDENTIAL BUILDING IS BEING CONSTRUCTED ON THE SITE PROVIDE THE TENANT WITH SUIT- ABLE INTERIM HOUSING AT NO ADDITIONAL COST UNTIL A UNIT IS AVAILABLE IN THE NEW BUILDING; PROVIDE THAT THE AMOUNT OF RENT CHARGED FOR THE UNIT
SHALL BE AT THE SAME OR LOWER LEGAL REGULATED RENT; AND PROVIDE THE TENANT, IN ADDITION TO REASONABLE MOVING EXPENSES, PAYMENT OF A FIVE THOUSAND DOLLAR STIPEND, PROVIDED THE TENANT VACATES ON OR BEFORE THE VACATE DATE REQUIRED BY THE FINAL ORDER; OR (II) PROVIDE RELOCATION OF THE TENANT TO A SUITABLE HOUSING ACCOMMODATION AT A RENT IN EXCESS OF THAT FOR THE SUBJECT HOUSING ACCOMMODATION; PROVIDE THE TENANT, IN ADDI- TION TO REASONABLE MOVING EXPENSES, A STIPEND EQUAL TO THE DIFFERENCE OF THE RENT CHARGED AT THE HOUSING ACCOMMODATION BEING VACATED AND THE RENT CHARGED FOR THE HOUSING ACCOMMODATION TO WHICH THE TENANT IS RELOCATING, MULTIPLIED BY SEVENTY-TWO MONTHS, PROVIDED THE TENANT VACATES ON OR BEFORE THE VACATE DATE REQUIRED BY THE FINAL ORDER; OR (III) PAY THE TENANT A STIPEND WHICH SHALL BE THE DIFFERENCE BETWEEN THE TENANT'S CURRENT RENT AND AN AMOUNT TO BE CALCULATED USING THE DEMOLITION STIPEND CHART, CREATED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, MULTI- PLIED BY SEVENTY-TWO MONTHS; or S 2. This act shall take effect immediately and shall apply to any tenant in possession on or after such effective date and to any action or proceeding pending in any court and to any application, complaint, or proceeding pending before an administrative agency on such effective date, as well as to any action or proceeding commenced thereafter; provided, however that the amendments to subparagraph (a) of paragraph 9 of subdivision c of section 26-511 of chapter 4 of title 26 of the administrative 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.

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