NY State Senate Bill 2015-S3741

Senate Bill S3741

2015-2016 Legislative Session

Limits the rent increase after vacancy of a housing accommodation and relates to the adjustment of maximum allowable rent

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to housing, construction and community development
Feb 17, 2015	referred to housing, construction and community development

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2015-S3741 (ACTIVE) - Details

See Assembly Version of this Bill:: A5502
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-511 & 26-405, NYC Ad Cd; amd §§10 & 6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A2593
2019-2020: A298

2015-S3741 (ACTIVE) - Summary

Limits the rent increase after vacancy of a housing accommodation by eliminating the twenty percent increase for vacant rent stabilized apartments; requires landlords to include an itemized cost accounting of all improvements claimed as part of such increase and copies of the corresponding receipts with the lease agreement to the new tenant; caps the increase in rent allowable to owners for individual apartment improvements to twenty percent of the current rent.

2015-S3741 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3741

TITLE OF BILL:  An act to amend the administrative code of the city of
New York and the emergency tenant protection act of nineteen
seventy-four, in relation to limiting rent increase after vacancy of a
housing accommodation; and to amend the administrative code of the
city of New York, the emergency tenant protection act of nineteen
seventy-four and the emergency housing rent control law, in relation
to adjustment of maximum allowable rent

PURPOSE OR GENERAL IDEA OF BILL:

Limits the rent increases after vacancy of a rent stabilized housing
unit and relates to the adjustment of maximum allowable rent by
eliminating the vacancy bonus, capping individual apartment
improvements(IAIs), and requiring proof of improvements.

SUMMARY OF PROVISIONS:

-This bill eliminates the automatic 20% vacancy bonus increase

-Caps the amount by which the legal rent of a vacant apartment can
raised by Individual Apartment Improvements to 20%.

-Requires landlords who are using Individual Apartment Improvements to
justify rent increases of the legal rent to give an itemized list of

the improvements and the accompanying receipts to the new tenant as a
rider to the lease.

JUSTIFICATION:

Landlords have been using Individual Apartment Improvements (IAIs) as
a tool to raise the legal rent of rent stabilized units past to the
level of vacancy decontrol. Between these IAIS, which allow landlords
to raise the rent by 1/40(for smaller buildings) or 1/60 (for larger
buildings)of the value of the improvements, and the 20% automatic
vacancy decontrol (bounce) far too many apartments are being
deregulated This bill would eliminate the 20% bonus and cap the
maximum IAI related increase to 20%. Landlords should have to justify
an increase of the legal rent, it should not just be handed out and
any increase should not be so much that the apartment becomes
unaffordable.

In addition, this bill requires that if IAIs are used to justify a
vacancy increase the landlord must give an itemized list of the
improvements and the accompanying receipts to the new tenant as a
rider to the lease. Far too often when the improvements that landlords
claim they are making are audited it is found that they were overblown
or never done. This empowers tenants by giving them a tool to ensure
their landlord has done the improvement they have claimed to have
done.

PRIOR LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:


To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

2015-S3741 (ACTIVE) - Bill Text download pdf

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

                                  3741

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 17, 2015
                               ___________

Introduced by Sen. ESPAILLAT -- 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 administrative code of the city of New York and  the
  emergency  tenant protection act of nineteen seventy-four, in relation
  to limiting rent increase after vacancy of  a  housing  accommodation;
  and  to  amend  the  administrative  code of the city of New York, the
  emergency tenant protection act of nineteen seventy-four and the emer-
  gency housing rent control law, in relation to adjustment  of  maximum
  allowable rent

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

  Section 1. Paragraph 5-a of subdivision c of  section  26-511  of  the
administrative  code of the city of New York, as amended by section 7 of
part B of chapter 97 of the laws of 2011, is amended to read as follows:
  (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] 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09027-02-5

S. 3741                             2

of this paragraph, the legal regulated rent may be  [further]  increased
by an amount equal to the product resulting from multiplying such previ-
ous legal regulated rent by six-tenths of one percent and further multi-
plying 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,  AND  MAY  NOT  BE
IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW TENANT AN ITEMIZED
COST ACCOUNTING OF ALL IMPROVEMENTS CLAIMED AS PART OF SUCH INCREASE AND
COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE AGREEMENT.
  S  2.  Subdivision  (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,  as amended by section 8 of part B of chapter 97
of the laws of 2011, is amended to read as follows:
  (a-1) provides that, notwithstanding any provision of  this  act,  the
legal regulated rent for any vacancy lease entered into after the effec-
tive  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] 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
subdivision,  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
act,  the  number  of  years  that  such  housing accommodation has been

S. 3741                             3

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, notwith-
standing the number of vacancy leases entered into in such year, AND MAY
NOT BE IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW  TENANT  AN
ITEMIZED  COST  ACCOUNTING  OF  ALL IMPROVEMENTS CLAIMED AS PART OF SUCH
INCREASE AND COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE  AGREE-
MENT.
  S  3.  Subparagraph  (e)  of  paragraph  1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section 15 of part B of chapter 97 of the laws of 2011,  is  amended  to
read as follows:
  (e)  The  landlord  and  tenant  by mutual voluntary written agreement
agree to a substantial increase or  decrease  in  dwelling  space  or  a
change  in the services, furniture, furnishings or equipment provided in
the housing accommodations. An adjustment under this subparagraph  shall
be  equal to one-fortieth, in the case of a building with thirty-five or
fewer housing accommodations, or one-sixtieth, in the case of a building
with more than thirty-five housing accommodations where such  adjustment
takes  effect  on or after September twenty-fourth, two thousand eleven,
of the total cost incurred by the landlord in providing  such  modifica-
tion  or increase in dwelling space, services, furniture, furnishings or
equipment, including the cost of  installation,  but  excluding  finance
charges,  WITH  AN  ADJUSTMENT, IN BOTH CASES, BEING NO MORE THAN TWENTY
PERCENT OF THE CURRENT RENT, provided further that an owner who is enti-
tled to a rent increase pursuant to this subparagraph shall not be enti-
tled to a further rent increase based upon the installation  of  similar
equipment,  or  new  furniture  or furnishings within the useful life of
such new equipment, or new furniture or  furnishings.  The  owner  shall
give  written  notice  to  the  city  rent agency of any such adjustment
pursuant to this subparagraph; or
  S 4. Paragraph 13 of subdivision c of section 26-511 of  the  adminis-
trative code of the city of New York, as amended by section 16 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
  (13) provides that an owner is entitled to a rent increase where there
has  been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment  or  improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing  accommodation,  on  written tenant consent to the rent increase. In
the case of a vacant housing accommodation, tenant consent shall not  be
required.  The  permanent  increase  in the legal regulated rent for the
affected housing accommodation shall be one-fortieth, in the case  of  a
building with thirty-five or fewer housing accommodations, or one-sixti-
eth, in the case of a building with more than thirty-five housing accom-

S. 3741                             4

modations where such permanent increase takes effect on or after Septem-
ber  twenty-fourth,  two  thousand eleven, of the total cost incurred by
the landlord in providing such  modification  or  increase  in  dwelling
space, services, furniture, furnishings or equipment, including the cost
of  installation, but excluding finance charges, PROVIDED, HOWEVER, THAT
IN BOTH CASES, THE PERMANENT INCREASE IS NO MORE THAN TWENTY PERCENT  OF
THE  CURRENT LEGAL REGULATED RENT. Provided further that an owner who is
entitled to a rent increase pursuant to  this  paragraph  shall  not  be
entitled to a further rent increase based upon the installation of simi-
lar equipment, or new furniture or furnishings within the useful life of
such new equipment, or new furniture or furnishings.
  S 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
576  of  the  laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as amended by section  18  of  part  B  of
chapter 97 of the laws of 2011, is amended to read as follows:
  (1)  there has been a substantial modification or increase of dwelling
space or an increase in the services, or installation of  new  equipment
or  improvements  or  new  furniture or furnishings, provided in or to a
tenant's housing accommodation, on written tenant consent  to  the  rent
increase.  In the case of a vacant housing accommodation, tenant consent
shall not be required. The permanent increase  in  the  legal  regulated
rent  for  the  affected housing accommodation shall be one-fortieth, in
the case of a building with thirty-five or fewer housing accommodations,
or one-sixtieth, in the case of a building with  more  than  thirty-five
housing  accommodations where such permanent increase takes effect on or
after September twenty-fourth, two thousand eleven, of  the  total  cost
incurred  by  the landlord in providing such modification or increase in
dwelling space, services, furniture, furnishings or equipment, including
the cost of  installation,  but  excluding  finance  charges,  PROVIDED,
HOWEVER,  THAT  IN  BOTH  CASES,  THE PERMANENT INCREASE IS NO MORE THAN
TWENTY PERCENT OF THE CURRENT LEGAL REGULATED RENT.    Provided  further
that  an owner who is entitled to a rent increase pursuant to this para-
graph shall not be entitled to a further rent increase  based  upon  the
installation of similar equipment, or new furniture or furnishings with-
in  the  useful  life  of  such  new  equipment,  or  new  furniture  or
furnishings.
  S 6. Clause 5 of the second undesignated paragraph of paragraph (a) of
subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
tuting  the emergency housing rent control law, as amended by section 25
of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
follows:
  (5)  the  landlord  and  tenant  by mutual voluntary written agreement
agree to a substantial increase or  decrease  in  dwelling  space  or  a
change  in the services, furniture, furnishings or equipment provided in
the housing accommodations; provided that an owner shall be entitled  to
a  rent  increase  where  there  has  been a substantial modification or
increase of dwelling space or an increase in the services, or  installa-
tion  of  new  equipment or improvements or new furniture or furnishings
provided in or  to  a  tenant's  housing  accommodation.  The  permanent
increase  in  the  maximum  rent  for the affected housing accommodation
shall be one-fortieth, in the case of a  building  with  thirty-five  or
fewer housing accommodations, or one-sixtieth, in the case of a building
with  more  than thirty-five housing accommodations where such permanent
increase takes effect on or after September twenty-fourth, two  thousand
eleven,  of  the  total  cost incurred by the landlord in providing such
modification  or  increase  in  dwelling  space,  services,   furniture,

S. 3741                             5

furnishings  or  equipment,  including  the  cost  of  installation, but
excluding finance charges, PROVIDED, HOWEVER, THAT IN  BOTH  CASES,  THE
PERMANENT  INCREASE  IS NO MORE THAN TWENTY PERCENT OF THE CURRENT RENT,
AND  provided  further  that an owner who is entitled to a rent increase
pursuant to this clause shall not be entitled to a further rent increase
based upon the installation of similar equipment, or  new  furniture  or
furnishings  within the useful life of such new equipment, or new furni-
ture or furnishings. The owner shall give written notice to the  commis-
sion of any such adjustment pursuant to this clause; or
  S 7. This act shall take effect immediately; provided that:
  a.  the  amendments  to section 26-511 of chapter 4 of title 26 of the
administrative code of the city of New York made  by  sections  one  and
four  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;
  b.  the  amendments  to  sections  10  and  6  of the emergency tenant
protection act of nineteen seventy-four made by sections two and five 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;
  c.  the  amendments  to  section 26-405 of the city rent and rehabili-
tation law made by section three of this act shall remain in full  force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision  3  of section 1 of the local emergency housing rent control
act; and
  d. the amendments to section 4 of the emergency housing  rent  control
law  made  by  section  six of this act shall expire on the same date as
such law expires and shall not affect the  expiration  of  such  law  as
provided  in  subdivision  2  of section 1 of chapter 274 of the laws of
1946.

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