Provides that in cities with a population of one million or more, the rent following the dissolution date of Mitchell-Lama developments shall be the last rent authorized for the affected dwelling.
TITLE OF BILL: An act to amend the private housing finance law, in relation to limited profit housing companies in a city with a population of one million or more
PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to protect tenants in Mitchell-Lama developments which become subject to Rent Stabilization or the Emergency Tenant Protection Act by prohibiting an owner from applying for a rent increase based on unique and peculiar circumstances when a project withdraws from this program.
SUMMARY OF SPECIFIC PROVISIONS: This bill would add a new section 35-a to the Private Housing Finance Law. The legislation provides that the initial legal regulated rent after the dissolution date for a limited profit housing development subject to the rent stabilization law of 1969 or the emergency tenant protection act of 1974 shall be the last rent authorized for the affected dwelling unit. The bill further states that the legal regulated rent shall not be subject to adjustment pursuant to Section 26-513 of the New York City administrative code ("unique and peculiar" clause).
JUSTIFICATION: This bill will protect the thousands of Mitchell-Lama tenants who live in rental apartments. Until a recent Court of Appeals ruling in 2004, tenants in the affected buildings were reasonably protected upon dissolution from the Mitchell-Lama program because they would be placed into rent stabilization. The 2004 ruling, however, potentially allows a landlord to petition DHCR to use a provision of the New York City Administrative Code to cause a steep increase in rents. This would cause many Mitchell-Lama residents to have to leave the homes they have lived in for decades. By making the last rent paid prior to dissolution the initial legal regulated rent and prohibiting any use of the unique and peculiar provision, this bill will ensure the continued affordability of these apartments and the opportunity for tenants to remain in their homes.
PRIOR LEGISLATIVE HISTORY: S.1863B of 2009 (Referred to Housing) S.5245 of 2008 (Referred to Housing) S.5245 of 2007 (Referred to Rules) S.7120 of 2006 (Referred to Housing)
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 531 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sens. KLEIN, SERRANO -- 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 private housing finance law, in relation to limited profit housing companies in a city with a population of one million or more THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The private housing finance law is amended by adding a new section 35-a to read as follows: S 35-A. RENT FOLLOWING DISSOLUTION. 1. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "AFFECTED DEVELOPMENT" SHALL MEAN HOUSING ACCOMMODATIONS THAT (I) PRIOR TO THE DISSOLUTION DATE WERE OPERATED AS A RENTAL DEVELOPMENT PURSUANT TO THIS ARTICLE; AND (II) FOLLOWING THE DISSOLUTION DATE ARE SUBJECT TO THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE OR THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR. (B) "AFFECTED DWELLING UNIT" SHALL MEAN A HOUSING UNIT IN AN AFFECTED DEVELOPMENT. (C) "AFFECTED HOUSING COMPANY" SHALL MEAN A LIMITED-PROFIT HOUSING COMPANY WITH AN AFFECTED DEVELOPMENT. (D) "DISSOLUTION DATE" SHALL MEAN, WITH RESPECT TO ANY AFFECTED DEVEL- OPMENT, THE DATE OF DISSOLUTION OR RECONSTITUTION OF THE AFFECTED HOUS- ING COMPANY WITH SUCH AFFECTED DEVELOPMENT PURSUANT TO SECTION THIRTY-FIVE OF THIS ARTICLE. 2. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW: (A) THE INITIAL LEGAL REGULATED RENT FOR ANY AFFECTED DWELLING UNIT ON AND AFTER THE DISSOLUTION DATE SHALL BE THE LAST RENT AUTHORIZED FOR THE AFFECTED DWELLING UNIT BEFORE THE DISSOLUTION DATE, INCLUDING RENTAL SURCHARGES, IF ANY, AND (B) SUCH LEGAL REGULATED RENT SHALL NOTEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01769-01-1 S. 531 2
AT ANY TIME BE SUBJECT TO ADJUSTMENT PURSUANT TO SUBDIVISION A OF SECTION 26-513 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR SUBDIVISION A OF SECTION 9 OF SECTION 4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR. S 2. This act shall take effect immediately.