NY State Senate Bill 2017-S150

Senate Bill S150

2017-2018 Legislative Session

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

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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 04, 2017	referred to housing, construction and community development

co-Sponsors

2017-S150 (ACTIVE) - Details

See Assembly Version of this Bill:: A1116
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:: 2009-2010: S1658, A540
2011-2012: S736, A193
2013-2014: S207, A454
2015-2016: S586, A87
2019-2020: S5118, A3146
2021-2022: S2848, A2032

2017-S150 (ACTIVE) - Summary

Defines, for purposes of the Mitchell-Lama housing projects, "essential services" which landlords 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.

2017-S150 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S150

 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 ensure 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 unfair for tenants
to face a rent increase in a Mitchell-Lama building when essential
services are not being maintained. The bill will help ensure that
landlords provide essential services if an increase is to be granted.

 LEGISLATIVE HISTORY :

2016: S586/A87 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT/ advanced to third reading
2015: S586/A87 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT/ advanced to third reading
2014: S207/A454 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT/Passed Assembly
2013: S207/A454 - REFERRED TO HOUSING,CONSTRUCTION AND COMMUNITY
DEVELOPMENT/Passed Assembly
2012: S736/A193 - REFERRED TO HOUSING,CONSTRUCTION AND COMMUNITY
DEVELOPMENT/Passed Assembly 2011: S736/A193 - REFERRED TO HOUSING,
CONSTRUCTION AND COMMUNITY DEVELOPMENT/Advanced to third reading
2010: 51658 (Espada)/A540 - REFERRED TO HOUSING,CONSTRUCTION AND
COMMUNITY DEVELOPMENT/Passed Assembly
2009: S1658 (Espada)/A450 - REFERRED TO HOUSING,CONSTRUCTION AND
COMMUNITY DEVELOPMENT/Passed Assembly

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S150 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    150
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sens.  SQUADRON,  HAMILTON,  HOYLMAN  --  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.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD02369-01-7

 S. 150                              2
 
 FIRE HAZARD OR IN A CONTINUED DANGEROUS CONDITION OR DETRIMENTAL TO LIFE
 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.
   § 3. This act shall take effect immediately.

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Senate Bill S150

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Sponsored By

Daniel L. Squadron