S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2593
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Housing
 
 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 16-a
 of part A of chapter 20 of the laws of  2015,  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.] However,
 where the amount charged and paid by the prior tenant pursuant to  para-
 graph  fourteen  of  this subdivision, was less than the legal regulated
 rent, such increase to the legal regulated rent shall not  exceed:  five
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05270-01-7

 A. 2593                             2
 
 percent  of  the previous legal regulated rent if the last vacancy lease
 commenced less than two years ago; ten percent  of  the  previous  legal
 regulated rent if the last vacancy lease commenced less than three years
 ago;  fifteen  percent  of the previous legal regulated rent if the last
 vacancy lease commenced less than four years ago; twenty percent of  the
 previous  legal  regulated rent if the last vacancy lease commenced four
 or more years ago. [In addition,] 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  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  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 chapter  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  implemented 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.
   §  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 16-b of part A of chapter
 20 of the laws of 2015, 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.] However, where the amount
 charged  and  paid by the prior tenant pursuant to paragraph fourteen of

 A. 2593                             3
 
 this subdivision, was less than the legal regulated rent, such  increase
 to the legal regulated rent shall not exceed: five percent of the previ-
 ous  legal  regulated rent if the last vacancy lease commenced less than
 two  years  ago; ten percent of the previous legal regulated rent if the
 last vacancy commenced less than three years ago; fifteen percent of the
 previous legal regulated rent if the last vacancy lease  commenced  less
 than four years ago; twenty percent of the previous legal regulated rent
 if  the  last  vacancy lease commenced four or more years ago. [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
 of this subdivision, 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
 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 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.
   § 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-

 A. 2593                             4
 
 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
   §  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-
 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.
   § 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.

 A. 2593                             5
 
   § 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,
 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
   § 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.