This bill has been amended

Bill S500-2013

Prevents landlords from receiving a financial windfall from major capital improvements funded by the New York state energy and research development authority

Prevents landlords from receiving a financial windfall from major capital improvements funded by the New York State energy and research development authority.

Details

Actions

  • Jan 9, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Memo

BILL NUMBER:S500

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 landlords from increasing rent for major capital improvements funded through state entities

PURPOSE: This bill prevents landlords from receiving a financial windfall from major capital improvements funded by the New York State Energy and Development Authority (NYSERDA)

SUMMARY OF SPECIFIC PROVISIONS: Section 1 - Amends paragraph 3 of subdivision d of section 6 of section 4 of chapter 576 of the laws of 1974 to exclude NYSERDA funded projects.

Section 2 - Amends subparagraph g of paragraph 1 of subdivision g of section 26-405 of the administrative code of the city of New York to exclude NYSERDA funded projects.

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

Section 4 - Effective date.

JUSTIFICATION: 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 the Division of Housing and Community Renewal for Major Capital Improvement 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.

LEGISLATIVE HISTORY: 2009: S.1794 (Duane), Died in Housing; A 4877 (Kavanaugh), Died in Housing 2010: S.1794 (Duane), Died in Housing; A.4877 (Kavanaugh), Died in Housing

FISCAL IMPACT ON THE STATE: None.

EFFECTIVE DATE: This act shall take effect immediately provided that (a) the amendments to paragraph 3 of subdivision d of section 6 of section 4 of the emergency tenant protection act of nineteen seventy-four made by section one 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; and (b) the amendments to section 26-204 if the city rent and rehabilitation law made by sections two and three of the act shall remain in full force and effect only as 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 500 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. ESPAILLAT -- 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 emergency tenant protection act of nineteen seven- ty-four and the administrative code of the city of New York, in relation to prohibiting landlords from increasing rent for major capi- tal improvements funded through state entities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 3 of subdivision d of section 6 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 749 of the laws of 1990, is amended to read as follows: (3) there has been since January first, nineteen hundred seventy-four a major capital improvement required for the operation, preservation or maintenance of the structure; PROVIDED THAT THE MAJOR CAPITAL IMPROVE- MENT WAS NOT FUNDED IN ANY PART FROM MONEYS PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. An adjustment under this paragraph shall be in an amount sufficient to amortize the cost of the improvements pursuant to this paragraph over a seven-year period, or S 2. Subparagraph (g) of paragraph 1 of subdivision g of section 26-405 of the administrative code of the city of New York, as amended by chapter 749 of the laws of 1990, is amended to read as follows: (g) There has been since July first, nineteen hundred seventy, a major capital improvement required for the operation, preservation or mainte- nance of the structure; PROVIDED THAT THE MAJOR CAPITAL IMPROVEMENT WAS NOT FUNDED IN ANY PART FROM MONEYS PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. An adjustment under this subpara- graph [(g)] shall be in an amount sufficient to amortize the cost of the
improvements pursuant to this subparagraph [(g)] over a seven-year peri- od; or S 3. Subparagraph (k) of paragraph 1 of subdivision g of section 26-405 of the administrative code of the city of New York, as amended by chapter 749 of the laws of 1990, is amended to read as follows: (k) The landlord has incurred, since January first, nineteen hundred seventy, in connection with and in addition to a concurrent major capi- tal improvement pursuant to subparagraph (g) of this paragraph, other expenditures to improve, restore or preserve the quality of the struc- ture; PROVIDED THAT SUCH OTHER EXPENDITURES WERE NOT FUNDED IN ANY PART FROM MONEYS PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP- MENT AUTHORITY. An adjustment under this subparagraph shall be granted only if such improvements represent an expenditure equal to at least ten per centum of the total operating and maintenance expenses for the preceding year. An adjustment under this subparagraph shall be in addi- tion to any adjustment granted for the concurrent major capital improve- ment and shall be in an amount sufficient to amortize the cost of the improvements pursuant to this subparagraph over a seven-year period. S 4. This act shall take effect immediately; provided that: (a) the amendments to paragraph 3 of subdivision d of section 6 of section 4 of the emergency tenant protection act of nineteen seventy- four made by section one 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; and (b) the amendments to section 26-405 of the city rent and rehabili- tation law made by sections two and three of this act shall remain in full force and effect only as 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.

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