NY State Senate Bill 2013-S3673A

Senate Bill S3673A

2013-2014 Legislative Session

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

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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 22, 2014	print number 3673a
Jan 22, 2014	amend and recommit to housing, construction and community development
Jan 08, 2014	referred to housing, construction and community development
Feb 11, 2013	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2013-S3673 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §10, Emerg Ten Prot Act of 1974; amd §26-511, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6515
2015-2016: S2278
2017-2018: S4773

2013-S3673 - Summary

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

2013-S3673 - Sponsor Memo

2013-S3673 - Bill Text download pdf

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

                                  3673

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 11, 2013
                               ___________

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 FOURTEEN, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07118-01-3

S. 3673                             2

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

S. 3673                             3

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 FOURTEEN, 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.

S. 3673                             4

  (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  FOURTEEN,  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

S. 3673                             5

  (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.

2013-S3673A (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §10, Emerg Ten Prot Act of 1974; amd §26-511, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6515
2015-2016: S2278
2017-2018: S4773

2013-S3673A (ACTIVE) - Summary

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

2013-S3673A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3673A

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
sent stabilization law of 1969 to provide that on and after January 1,
2014, 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 based upon a system of one year
increases.

LEGISLATIVE HISTORY:

2013: S.3673 Referred to Senate Housing Committee
2011,2012: S.6515 Advanced to Third Reading

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE: Immediately

2013-S3673A (ACTIVE) - Bill Text download pdf

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

                                 3673--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 11, 2013
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  recommitted  to  the Committee on Housing,
  Construction and Community Development in accordance with Senate  Rule
  6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

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  FIFTEEN, SUCH REGULATIONS SHALL REQUIRE OWNERS TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07118-02-4

S. 3673--A                          2

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

S. 3673--A                          3

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 FIFTEEN, 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-

S. 3673--A                          4

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  FIFTEEN,  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

S. 3673--A                          5

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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