Bill S6515-2011

Requires vacancy lease and renewals of leases for rent regulated housing accommodations to be for a term of 1 year

Requires vacancy leases and renewals of leases for rent regulated housing accommodations to be for a term of one year.

Details

Actions

  • Jun 21, 2012: COMMITTED TO RULES
  • May 2, 2012: ADVANCED TO THIRD READING
  • May 1, 2012: 2ND REPORT CAL.
  • Apr 30, 2012: 1ST REPORT CAL.606
  • Feb 21, 2012: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Meetings

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:S6515

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 providing that vacancy leases and renewals thereof for rent regulated housing accommodations shall be for a term of one year

PURPOSE: To limit renewal leases under rent stabilization to a term of one year.

SUMMARY OF PROVISIONS: This bill amends the emergency tenant protection act of 1974 and the rent stabilization law of 1969 to provide that on and after January 1, 2013, any renewal of stabilized leases will be for a term of one year.

JUSTIFICATION: Each year increases in rent for stabilized apartments are limited by the guidelines issued by rent guidelines boards for leases which are due for renewal on and after October 1st each year. The board's guidelines are intended to reflect the financial data it has relied upon from the prior year to determine the price index of operating costs to establish guidelines for the coming year. Forecasting the proper guidelines for the upcoming year based upon prior data is difficult and forecasting based upon further speculation using outdated economic data is even more difficult and sometimes not reliable. It can be a difficult decision for tenants who must choose whether to select a one year or two year lease renewal based upon uncertain economic data. A tenant may chose to forgo a one year lease and incur a larger increase to provide certainty in rent for a longer period, but they may be sacrificing a lower actual increase than they would face with two successive one year leases. At the same time, maintaining two year leases and their related guidelines is prejudicial to property owners whose costs fluctuate wildly. Owner and tenants need a rent guidelines mechanism which bests reflects actual costs. By contrast, the rent control system has long been bases upon a system of one year increases.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6515 IN SENATE February 21, 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 emergency tenant protection act of nineteen seven- ty-four and the administrative code of the city of New York, in relation to providing that vacancy leases and renewals thereof for rent regulated housing accommodations shall be for a term of one year THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions a and (a-1) of section 10 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, subdivision a as amended by chapter 234 of the laws of 1984 and subdivision (a-1) as amended by section 8 of part B of chapter 97 of the laws of 2011, are amended to read as follows: a. For cities having a population of less than one million and towns and villages, the state division of housing and community renewal shall be empowered to implement this act by appropriate regulations. Such regulations may encompass such speculative or manipulative practices or renting or leasing practices as the state division of housing and commu- nity renewal determines constitute or are likely to cause circumvention of this act. Such regulations shall prohibit practices which are likely to prevent any person from asserting any right or remedy granted by this act, including but not limited to retaliatory termination of periodic tenancies and shall require owners to grant a new one or two year vacan- cy or renewal lease at the option of the tenant; PROVIDED, HOWEVER, THAT FOR VACANCY AND RENEWAL LEASES WHICH TAKE EFFECT ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, SUCH REGULATIONS SHALL REQUIRE OWNERS TO GRANT A NEW ONE YEAR VACANCY OR RENEWAL LEASE, except where a mortgage or mortgage commitment existing as of the local effective date of this act provides that the owner shall not grant a one-year lease; and shall prescribe standards with respect to the terms and conditions of new and renewal leases, additional rent and such related matters as security deposits, advance rental payments, the use of escalator clauses in leas- es and provision for increase in rentals for garages and other ancillary facilities, so as to insure that the level of rent adjustments author- ized under this law will not be subverted and made ineffective. Any
provision of the regulations permitting an owner to refuse to renew a lease on grounds that the owner seeks to recover possession of the hous- ing accommodation for his own use and occupancy or for the use and occu- pancy of his immediate family shall require that an owner demonstrate immediate and compelling need and shall not apply where a member of the housing accommodation is sixty-two years of age or older, has been a tenant in a housing accommodation in that building for twenty years or more, or has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which are demonstrable by medically accept- able clinical and laboratory diagnostic techniques, and which are expected to be permanent and which prevent the tenant from engaging in any substantial gainful employment. [(a-1)] A-1. provides that, notwithstanding any provision of this act, the legal regulated rent for any vacancy lease entered into after the effective date of this subdivision shall be as hereinafter set forth. The previous legal regulated rent for such housing accommodation shall be increased by [the following: (i) if the vacancy lease is for a term of two years,] twenty percent of the previous legal regulated rent[; or (ii) if the vacancy lease is for a term of one year the increase shall be twenty percent of the previous legal regulated rent less an amount equal to the difference between (a) the two year renewal lease guideline promulgated by the guidelines board of the county in which the housing accommodation is located applied to the previous legal regulated rent and (b) the one year renewal lease guideline promulgated by the guide- lines board of the county in which the housing accommodation is located applied to the previous legal regulated rent]. In addition, if the legal regulated rent was not increased with respect to such housing accommo- dation by a permanent vacancy allowance within eight years prior to a vacancy lease executed on or after the effective date of this subdivi- sion, the legal regulated rent may be further increased by an amount equal to the product resulting from multiplying such previous legal regulated rent by six-tenths of one percent and further multiplying the amount of rent increase resulting therefrom by the greater of (A) the number of years since the imposition of the last permanent vacancy allowance, or (B) if the rent was not increased by a permanent vacancy allowance since the housing accommodation became subject to this act, the number of years that such housing accommodation has been subject to this act. Provided that if the previous legal regulated rent was less than three hundred dollars the total increase shall be as calculated above plus one hundred dollars per month. Provided, further, that if the previous legal regulated rent was at least three hundred dollars and no more than five hundred dollars in no event shall the total increase pursuant to this subdivision be less than one hundred dollars per month. Such increase shall be in lieu of any allowance authorized for the one or two year renewal component thereof, but shall be in addition to any other increases authorized pursuant to this act 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 improvements or new furniture or furnishings provided in or to the housing accommodation pursuant to section six of this act. The increase authorized in this subdivision may not be implemented more than one time in any calendar year, notwithstanding the number of vacancy leases entered into in such year. S 2. Paragraphs 4, 5-a and 12 of subdivision c of section 26-511 of the administrative code of the city of New York, paragraph 5-a as
amended by section 7 of part B of chapter 97 of the laws of 2011, are amended to read as follows: (4) includes provisions requiring owners to grant a one or two year vacancy or renewal lease at the option of the tenant; PROVIDED, HOWEVER, THAT FOR VACANCY AND RENEWAL LEASES WHICH TAKE EFFECT ON OR AFTER JANU- ARY FIRST, TWO THOUSAND THIRTEEN, SUCH CODE SHALL REQUIRE OWNERS TO GRANT A NEW ONE YEAR VACANCY OR RENEWAL LEASE, except where a mortgage or mortgage commitment existing as of April first, nineteen hundred sixty-nine, provides that the mortgagor shall not grant a one year lease; (5-a) provides that, notwithstanding any provision of this chapter, the legal regulated rent for any vacancy lease entered into after the effective date of this paragraph shall be as hereinafter provided in this paragraph. The previous legal regulated rent for such housing accommodation shall be increased by [the following: (i) if the vacancy lease is for a term of two years,] twenty percent of the previous legal regulated rent[; or (ii) if the vacancy lease is for a term of one year the increase shall be twenty percent of the previous legal regulated rent less an amount equal to the difference between (a) the two year renewal lease guideline promulgated by the guidelines board of the city of New York applied to the previous legal regulated rent and (b) the one year renewal lease guideline promulgated by the guidelines board of the city of New York applied to the previous legal regulated rent]. In addi- tion, if the legal regulated rent was not increased with respect to such housing accommodation by a permanent vacancy allowance within eight years prior to a vacancy lease executed on or after the effective date of this paragraph, the legal regulated rent may be further increased by an amount equal to the product resulting from multiplying such previous legal regulated rent by six-tenths of one percent and further multiply- ing the amount of rent increase resulting therefrom by the greater of (A) the number of years since the imposition of the last permanent vacancy allowance, or (B) if the rent was not increased by a permanent vacancy allowance since the housing accommodation became subject to this chapter, the number of years that such housing accommodation has been subject to this chapter. Provided that if the previous legal regulated rent was less than three hundred dollars the total increase shall be as calculated above plus one hundred dollars per month. Provided, further, that if the previous legal regulated rent was at least three hundred dollars and no more than five hundred dollars in no event shall the total increase pursuant to this paragraph be less than one hundred dollars per month. Such increase shall be in lieu of any allowance authorized for the one or two year renewal component thereof, but shall be in addition to any other increases authorized pursuant to this chap- ter 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 improvements or new furniture or furnishings provided in or to the housing accommodation pursuant to this section. The increase authorized in this paragraph may not be imple- mented more than one time in any calendar year, notwithstanding the number of vacancy leases entered into in such year. (12) permits subletting of units subject to this law pursuant to section two hundred twenty-six-b of the real property law provided that (a) the rental charged to the subtenant does not exceed the stabilized rent plus a ten percent surcharge payable to the tenant if the unit sublet was furnished with the tenant's furniture; (b) the tenant can establish that at all times he or she has maintained the unit as his or
her primary residence and intends to occupy it as such at the expiration of the sublease; (c) an owner may terminate the tenancy of a tenant who sublets or assigns contrary to the terms of this paragraph but no action or proceeding based on the non-primary residence of a tenant may be commenced prior to the expiration date of his or her lease; (d) where an apartment is sublet the prime tenant shall retain the right to a renewal lease and the rights and status of a tenant in occupancy as they relate to conversion to condominium or cooperative ownership; (e) where a tenant violates the provisions of subparagraph (a) of this paragraph the subtenant shall be entitled to damages of three times the overcharge and may also be awarded attorneys fees and interest from the date of the overcharge at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules; (f) the tenant may not sublet the unit for more than a total of two years, including the term of the proposed sublease, out of the four-year period preceding the termination date of the proposed sublease; PROVIDED, HOWEVER, THAT FOR SUBLEASES COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A TENANT MAY NOT SUBLET THE UNIT FOR MORE THAN ONE YEAR. The provisions of this subparagraph shall only apply to subleases commencing on and after July first, nineteen hundred eighty-three; (g) for the purposes of this paragraph only, the term of the proposed sublease may extend beyond the term of the tenant's lease. In such event, such sublease shall be subject to the tenant's right to a renewal lease. The subtenant shall have no right to a renewal lease. It shall be unreasonable for an owner to refuse to consent to a sublease solely because such sublease extends beyond the tenant's lease; and (h) notwithstanding the provisions of section two hundred twenty-six-b of the real property law, a not-for-profit hospital shall have the right to sublet any housing accommodation leased by it to its affiliated person- nel without requiring the landlord's consent to any such sublease and without being bound by the provisions of subparagraphs (b), (c) and (f) of this paragraph. Commencing with the effective date of this subpara- graph, whenever a not-for-profit hospital executes a renewal lease for a housing accommodation, the legal regulated rent shall be increased by a sum equal to fifteen percent of the previous lease rental for such hous- ing accommodation, hereinafter referred to as a vacancy surcharge, unless the landlord shall have received within the seven year period prior to the commencement date of such renewal lease any vacancy increases or vacancy surcharges allocable to the said housing accommo- dation. In the event the landlord shall have received any such vacancy increases or vacancy surcharges during such seven year period, the vacancy surcharge shall be reduced by the amount received by any such vacancy increase or vacancy surcharges. S 3. This act shall take effect immediately; provided that: (a) the amendments to section 10 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 26-511 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.

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