BILL NUMBER:A9112

TITLE OF BILL:  An act to amend the multiple dwelling law, in relation
to rent reduction in cases of submetered utility service

PURPOSE: The bill would require a rent reduction equal to the amount
of the additional charge for the utilities for tenants in buildings
which convert to submetering of utilities.

SUMMARY OF PROVISIONS: The bill proposes adding a section 302-d to the
multiple dwelling law which would, in apartment buildings which
convert to submetering, require a rent reduction equal to the
additional utility cost, and compel the Department of Housing and
Community Renewal to promulgate an appeals process by which tenants
can challenge the amount of the reduction and have it adjusted. Also,
within ninety days of the enactment of this legislation, the DHCR must
review the rent reductions which have already been made in submetered
buildings in order to ensure that they are equal to the amount of the
utility charges.

JUSTIFICATION: Many residential apartment buildings in New York
include charges for utilities in the rent. However an increasing
number of landlords are installing "submeters" which monitor utility
use individually for each unit in the building. After the submeters
are installed, the landlords charge tenants for utilities in addition
to the rent. Under current law, the additional utility charges are
              

accompanied by a rent reduction set by the Division of Housing and
Community Renewal. These rent reductions, however, are based on the
number of rooms in an apartment and do not reflect the actual utility
usage costs of the tenants. This leads to many tenants having to pay
more than they had agreed to pay when they signed their lease in order
to stay in their apartments after their building converts to
submetering.

This bill mandates that the rent reductions which tenants receive
after their building is converted must be based on their actual
utility costs in order to protect against an increase in the cost of
living for tenants. This legislation would also require the DHCR to,
within 90 days, review the rent reductions which have already been
made, and to modify them, if necessary, in order to bring them in line
with tenants' actual costs. The bill would also require the DHCR to
create an appeals process by which tenants can challenge their rent
reductions.

Currently rent reductions are based on the New York City Housing
Vacancy Survey's average monthly costs for utilities. In the Survey,
tenants were asked to "estimate" their monthly utility costs. This
produced highly questionable data, upon which the DHCR's rent
reductions were based.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.