BILL NUMBER:  S6351

 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.