Bill S6472-2011

Authorizes an increase in the rent of a rent regulated housing accommodation when the tenants vacate and family members of such tenants renew the lease

Authorizes an increase in the rent of a rent regulated housing accommodation when the tenants vacate and family members of such tenants renew the lease.

Details

Actions

  • Jun 5, 2012: referred to housing
  • Jun 5, 2012: DELIVERED TO ASSEMBLY
  • Jun 5, 2012: PASSED SENATE
  • May 2, 2012: ADVANCED TO THIRD READING
  • May 1, 2012: 2ND REPORT CAL.
  • Apr 30, 2012: 1ST REPORT CAL.604
  • Feb 13, 2012: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Housing, Construction and Community Development - Apr 30, 2012
Ayes (5): Young, Bonacic, Gallivan, Grisanti, Ritchie
Nays (3): Espaillat, Diaz, Krueger

Memo

BILL NUMBER:S6472

TITLE OF BILL: An act to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law and the local emergency housing rent control act, in relation to rent increases for rent regulated housing accommodations upon succession of the tenants

PURPOSE: This bill would allow property owners of rent regulated properties, in instances where a family member has succeeded to the prior tenant's tenancy, to obtain vacancy increases and other increases which would have been authorized had the succeeding tenant not been a family member. The bill also provides for a one time right of family succession.

SUMMARY OF PROVISIONS: This bill amends the emergency housing rent control law, the emergency tenant protection act of 1974 and the administrative code of the city of New York to authorize property owners to treat instances where family members succeed to the tenancy of a rent regulated apartment upon the permanent departure of the initial tenant as a vacancy for the purposes of rent increases. This bill amends the provisions of the Rent Regulation Reform Act which permits these increases upon the second, as opposed to the initial, succession.

JUSTIFICATION: In every rental situation outside of rent control and rent stabilization, a property owner who enters into a lease with the person named in the lease knows that the lease obligations terminate with the death or departure of the tenant and that no other persons have any rights to continue in occupancy. Family members or others who seek. to remain in occupancy may do subject to the consent of the property owner and are subject to any and all rent increases and other lease terms as may be agreed upon between them.

The rules under rent regulation are different. Persons who qualify as family members of the named tenant are, assuming they meet various legal qualifications, entitled to succeed to a tenancy and are insulated from the vacancy and other lease increases to which any other new tenant would be subject, and to which a property owner would ordinarily be entitled, if such persons were not family members. Under current law, those persons who succeed to the tenancy of the lessee family member are subject only to the same renewal lease increases that the family member would have been charged. In those instances, property owners are deprived of the vacancy and other increases they would otherwise receive if succession did not occur.

This bill does not affect the rights of persons entitled to initially succeed to the apartments that were previously occupied by a family member. It does however provide for a one time only right of succession for family members providing that after the initial renewal lease, no other family members shall be entitled to subsequent succession. This bill does, however, allow property owners to obtain the vacancy and

other lease increases they would have obtained had the family members not succeeded to the apartment.

LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6472 IN SENATE February 13, 2012 ___________
Introduced by Sen. YOUNG -- 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, the emergency tenant protection act of nineteen seventy-four, the emergen- cy housing rent control law and the local emergency housing rent control act, in relation to rent increases for rent regulated housing accommodations upon succession of the tenants THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 26-403.2 of the administrative code of the city of New York, as added by chapter 116 of the laws of 1997, is amended to read as follows: S 26-403.2 Increase in maximum collectable rent. Notwithstanding any provision of this law to the contrary, in the case where all tenants occupying the housing accommodation on the effective date of this section have vacated the housing accommodation and a family member of such vacating tenant or tenants is entitled to and continues to occupy the housing accommodation subject to the protections of this law, [if such accommodation continues to be subject to this law after such family member vacates,] on the occurrence of such vacancy the maximum collecta- ble rent OF SUCH FAMILY MEMBER OF SUCH TENANT OR TENANTS shall be increased by a sum equal to the allowance then in effect for vacancy leases for housing accommodations covered by the rent stabilization law of nineteen hundred sixty-nine, including the amount allowed by para- graph five-a of subdivision c of section 26-511 of such law. This increase shall be in addition to any other increases provided for in this law including an adjustment based upon a major capital improvement, or a substantial increase or decrease in dwelling space or a change in the services, furniture, furnishings or equipment provided in the hous- ing accommodation, pursuant to section 26-405 of this law [and shall be applicable in like manner to each second subsequent succession]. WHERE ALL TENANTS NAMED IN A LEASE HAVE PERMANENTLY VACATED A HOUSING ACCOMMO- DATION AND A FAMILY MEMBER OF SUCH TENANT OR TENANTS HAS EXECUTED A
RENEWAL LEASE FOR THE HOUSING ACCOMMODATION, NO OTHER FAMILY MEMBERS SHALL THEREAFTER BE ENTITLED TO EXECUTE A RENEWAL LEASE FOR SUCH HOUSING ACCOMMODATION. S 2. Subdivision f of section 26-512 of the administrative code of the city of New York, as added by chapter 116 of the laws of 1997, is amended to read as follows: f. Notwithstanding any provision of this law to the contrary, in the case where all tenants named in a lease have permanently vacated a hous- ing accommodation and a family member of such tenant or tenants is enti- tled to and executes a renewal lease for the housing accommodation [if such accommodation continues to be subject to this law after such family member vacates, on the occurrence of such vacancy], the legal regulated rent OF SUCH FAMILY MEMBER FOR SUCH RENEWAL LEASE shall be increased by a sum equal to the allowance then in effect for vacancy leases, includ- ing the amount allowed by paragraph (five-a) of subdivision c of section 26-511 of this law. Such increase shall be in addition to any other increases provided for in this law including an adjustment based upon a major capital improvement, or a substantial modification or increase of dwelling space or services, or installation of new equipment or improve- ments or new furniture or furnishings provided in or to the housing accommodation pursuant to section 26-511 of this law [and shall be applicable in like manner to each second subsequent succession]. WHERE ALL TENANTS NAMED IN A LEASE HAVE PERMANENTLY VACATED A HOUSING ACCOMMO- DATION AND A FAMILY MEMBER OF SUCH TENANT OR TENANTS HAS EXECUTED A RENEWAL LEASE FOR THE HOUSING ACCOMMODATION, NO OTHER FAMILY MEMBERS SHALL THEREAFTER BE ENTITLED TO EXECUTE A RENEWAL LEASE FOR SUCH HOUSING ACCOMMODATION. S 3. Subdivision g 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, as added by chapter 116 of the laws of 1997, is amended to read as follows: g. Notwithstanding any provision of this act to the contrary, in the case where all tenants named in a lease have permanently vacated a hous- ing accommodation and a family member of such tenant or tenants is enti- tled to and executes a renewal lease for the housing accommodation [if such accommodation continues to be subject to this act after such family member vacates, on the occurrence of such vacancy], the legal regulated rent OF SUCH FAMILY MEMBER FOR SUCH RENEWAL LEASE shall be increased by a sum equal to the allowance then in effect for vacancy leases, includ- ing the amount allowed by subdivision (a-1) of section ten of this act. Such increase shall be in addition to any other increases provided for in this act including an adjustment based upon a major capital improve- ment, or a substantial modification or increase of dwelling space or services, or installation of new equipment or improvements or new furni- ture or furnishings provided in or to the housing accommodation, pursu- ant to section six of this act [and shall be applicable in like manner to each second subsequent succession]. WHERE ALL TENANTS NAMED IN A LEASE HAVE PERMANENTLY VACATED A HOUSING ACCOMMODATION AND A FAMILY MEMBER OF SUCH TENANT OR TENANTS HAS EXECUTED A RENEWAL LEASE FOR THE HOUSING ACCOMMODATION, NO OTHER FAMILY MEMBERS SHALL THEREAFTER BE ENTI- TLED TO EXECUTE A RENEWAL LEASE FOR SUCH HOUSING ACCOMMODATION. S 4. Subdivision 9 of section 5 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, as added by chapter 116 of the laws of 1997, is amended to read as follows: 9. Notwithstanding any provision of this law to the contrary, in the case where all tenants occupying the housing accommodation on the effec-
tive date of this subdivision have vacated the housing accommodation and a family member of such vacating tenant or tenants is entitled to and continues to occupy the housing accommodation subject to the protections of this law, [if such accommodation continues to be subject to this law after such family member vacates,] on the occurrence of such vacancy the maximum collectable rent OF SUCH FAMILY MEMBER OF SUCH TENANT OR TENANTS shall be increased by a sum equal to the allowance then in effect for vacancy leases for housing accommodations covered by the rent stabiliza- tion law of nineteen hundred sixty-nine, including the amount allowed by paragraph five-a of subdivision c of section 26-511 of such law. This increase shall be in addition to any other increases provided in this law including an adjustment based upon a major capital improvement, or a substantial increase or decrease in dwelling space or a change in the services, furniture, furnishings or equipment provided in the housing accommodation, pursuant to section four of this law [and shall be appli- cable in like manner to each second subsequent succession]. WHERE ALL TENANTS NAMED IN A LEASE HAVE PERMANENTLY VACATED A HOUSING ACCOMMO- DATION AND A FAMILY MEMBER OF SUCH TENANT OR TENANTS HAS EXECUTED A RENEWAL LEASE FOR THE HOUSING ACCOMMODATION, NO OTHER FAMILY MEMBERS SHALL THEREAFTER BE ENTITLED TO EXECUTE A RENEWAL LEASE FOR SUCH HOUSING ACCOMMODATION. S 5. The sixth undesignated paragraph of subdivision 5 of section 1 of chapter 21 of the laws of 1962, constituting the local emergency rent control act, as amended by chapter 82 of the laws of 2003, is amended to read as follows: Notwithstanding any provision of this act to the contrary, any local law adopted pursuant to this act shall provide that notwithstanding any provision of such local law in the case where all tenants occupying the housing accommodation on the effective date of this paragraph have vacated the housing accommodation and a family member of such vacating tenant or tenants is entitled to and continues to occupy the housing accommodation subject to the protections of such act, [if such accommo- dation continues to be subject to such act after such family member vacates,] on the occurrence of such vacancy the maximum collectable rent OF SUCH FAMILY MEMBER OF SUCH TENANT OR TENANTS shall be increased by a sum equal to the allowance then in effect for vacancy leases for housing accommodations covered by the rent stabilization law of nineteen hundred sixty-nine, including the amount allowed by paragraph (5-a) of subdivi- sion c of section 26-511 of such law. This increase shall be in addition to any other increases provided for in this act [and shall be applicable in like manner to each second subsequent succession]. WHERE ALL TENANTS NAMED IN A LEASE HAVE PERMANENTLY VACATED A HOUSING ACCOMMODATION AND A FAMILY MEMBER OF SUCH TENANT OR TENANTS HAS EXECUTED A RENEWAL LEASE FOR THE HOUSING ACCOMMODATION, NO OTHER FAMILY MEMBERS SHALL THEREAFTER BE ENTITLED TO EXECUTE A RENEWAL LEASE FOR SUCH HOUSING ACCOMMODATION. S 6. This act shall take effect immediately and shall apply to all leases and renewal leases in effect immediately prior to such effective date, including renewal leases executed by a family member of a tenant or tenants named in a lease who have permanently vacated a housing accommodation; provided, that: (a) the amendments to section 26-403.2 of the city rent and rehabili- tation law made by section one 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;
(b) that the amendments to subdivision f of section 26-512 of chapter 4 of title 26 of the administrative code of the city of New York 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; (c) the amendments to subdivision g of section 6 of the emergency tenant protection act of nineteen seventy-four made by section three 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; (d) the amendments to subdivision 9 of section 5 of the emergency housing rent control law made by section four of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided in subdivision 2 of section 1 of chapter 274 of the laws of 1946; and (e) the amendments to subdivision 5 of section one of the local emer- gency housing rent control act, made by section five of this act, shall not affect the effectiveness of such subdivision and shall cease to be in full force and effect pursuant to subdivision 3 of such section.

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