NY State Senate Bill 2009-S1658

Senate Bill S1658

2009-2010 Legislative Session

Requires limited profit housing company to show maintenance of essential services before approval of rent increases

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to housing, construction and community development
Feb 04, 2009	referred to housing, construction and community development

2009-S1658 (ACTIVE) - Details

See Assembly Version of this Bill:: A540
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §§12 & 31, Priv Hous Fin L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S736, A193
2013-2014: S207, A454
2015-2016: S586, A87
2017-2018: S150, A1116
2019-2020: S5118, A3146
2021-2022: S2848, A2032

2009-S1658 (ACTIVE) - Summary

Defines, for purposes of the Mitchell-Lama housing projects, "essential services" which landlord in limited-profit housing companies are obligated to provide and requires that any authorized maximum average monthly rental increase shall be conditioned on the continued maintenance of such defined services.

2009-S1658 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1658

 TITLE OF BILL :

An act to amend the private housing finance law, in relation to
defining "essential services" and conditioning approval of increase of
maximum rentals upon maintenance of all essential services


 PURPOSE :

The purpose of this bill is to insure that rent increases in
Mitchell-Lama buildings are only granted when the housing company or
landlord is maintaining essential services or when the increases are
conditioned upon their being restored. The bill provides that before
any rent increase is approved in respect to a Mitchell-Lama building,
the housing company applying for the increase must be found to be
maintaining all essential services, and that no increase shall be
approved where there is a certification that the dwelling
accommodation is a fire hazard or is in a dangerous condition, or is
detrimental to life or health or is occupied in violation of law. If
essential services are not being maintained or if fire hazards or
dangerous conditions exist, a rent increase may be approved contingent
upon the restoration of essential services of removal of unsafe
conditions in a reasonably short and fixed time period. This bill also
contains a definition of essential services which indicates that such

services include, but are not limited to, repairs, maintenance, and
furnishing of light, heat, hot and cold water, telephone and elevator
services, kitchen, bath and laundry facilities and privileges, as well
as resident manager, superintendent and janitorial services, removal
of refuse, park and recreation facilities, security safeguards, and
community meeting facilities and nursery school rooms. The provisions
of the bill would not apply with respect to services reduced or
discontinued pursuant to the express consent of the division of
housing and community renewal.

 JUSTIFICATION :

Mitchell-Lama buildings are operated on what is, in essence, a cost
plus formula. Therefore, rentals are paid to a level necessary to
maintain essential services. If rentals are inadequate, the housing
company may apply for an increase in such rentals. There is,
therefore, no excuse for a housing company or landlord not to provide
essential services to tenants. It is particularly u~justified fro
tenants to face a rent increase in a Mitchell-Lama building when
essential services are not being maintained. The bill will insure that
where landlords are guaranteed a specific rate of return, they are
also, at the very least, compelled to provide essential services if an
increase is to be granted. Since there may be situations where the
landlord may need a rent increase in order to maintain essential
services, or to cure dangerous conditions, a rent increase should be
permissible contingent upon the necessary improvements being made in a
short fixed period of time.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S1658 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1658

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 4, 2009
                               ___________

Introduced  by  Sen.  ESPADA -- 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 defining
  "essential  services" and conditioning approval of increase of maximum
  rentals upon maintenance of all essential services

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 12 of the private housing finance law is amended by
adding a new subdivision 17 to read as follows:
  17.  "ESSENTIAL  SERVICES". THOSE ESSENTIAL SERVICES WHICH THE COMPANY
FURNISHED OR WHICH IT WAS OBLIGATED TO FURNISH ON THE DATE OF  OCCUPANCY
AND  WHICH  WERE  INCLUDED IN THE MAXIMUM RENT FOR THE DWELLING ACCOMMO-
DATIONS ON THAT DATE. THESE MAY INCLUDE, BUT  ARE  NOT  LIMITED  TO  THE
FOLLOWING:   REPAIRS AND MAINTENANCE, THE FURNISHING OF LIGHT, HEAT, HOT
AND COLD WATER, AND ELEVATOR SERVICE.  THIS SUBDIVISION SHALL NOT  APPLY
WITH  RESPECT  TO SERVICES WHICH SHALL HAVE BEEN REDUCED OR DISCONTINUED
PURSUANT TO THE EXPRESS CONSENT OF THE DIVISION.
  S 2. Section 31 of the private  housing  finance  law  is  amended  by
adding a new subdivision 1-a to read as follows:
  1-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER AND EXCEPT AS
OTHERWISE  PROVIDED IN THIS SUBDIVISION, THE COMMISSIONER OR SUPERVISING
AGENCY SHALL NOT APPROVE AN INCREASE  IN  THE  PRESENT  MAXIMUM  AVERAGE
MONTHLY  RENTAL  UNLESS  THE  COMPANY  OR OTHER APPLICANT IS FOUND TO BE
MAINTAINING ALL ESSENTIAL SERVICES FURNISHED OR REQUIRED TO BE FURNISHED
AS OF THE DATE OF THE ISSUANCE OF THE ORDER AUTHORIZING A RENT  INCREASE
AND  SUCH  INCREASE  SHALL  BE  CONDITIONED  ON  THE MAINTENANCE OF SUCH
SERVICES THEREAFTER. EXCEPT AS OTHERWISE PROVIDED IN  THIS  SUBDIVISION,
NO  RENT  INCREASE SHALL BE APPROVED WHERE THE APPROPRIATE DEPARTMENT OR
AGENCY HAVING JURISDICTION CERTIFIES THE  DWELLING  ACCOMMODATION  IS  A
FIRE HAZARD OR IN A CONTINUED DANGEROUS CONDITION OR DETRIMENTAL TO LIFE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02592-01-9

S. 1658                             2

OR  HEALTH  OR  IS  OCCUPIED  IN VIOLATION OF LAW. UPON A SHOWING BY THE
COMPANY OR OTHER APPLICANT THAT AN INCREASE IN MAXIMUM  AVERAGE  MONTHLY
RENTALS  IS  REQUIRED IN ORDER TO MAINTAIN ESSENTIAL SERVICES OR TO CURE
ANY  HAZARDOUS  OR  DANGEROUS CONDITION THEN, IN SUCH EVENT, THE COMMIS-
SIONER OR SUPERVISING AGENCY MAY APPROVE AN  INCREASE  IN  SUCH  MAXIMUM
AVERAGE  MONTHLY RENTALS PROVIDED THAT SUCH INCREASE SHALL BE CONTINGENT
UPON THE RESTORATION AND  CONTINUANCE  OF  ESSENTIAL  SERVICES  AND  THE
REMOVAL  OF  HAZARDOUS  OR DANGEROUS CONDITIONS WITHIN A FIXED PERIOD OF
TIME WHICH SHALL BE AS SHORT AS REASONABLY PRACTICABLE UNDER THE CIRCUM-
STANCES.
  S 3. This act shall take effect immediately.

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