S531-2011 Actions

• Jan 4, 2012: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
• Jan 5, 2011: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

S531-2011 Memo

BILL NUMBER:S531

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.

S531-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          531
 2011-2012 Regular Sessions
 I N  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  NOT
 EXPLANATION--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.

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