NY State Senate Bill 2017-S3643

Senate Bill S3643

2017-2018 Legislative Session

Requires landlord to grant access to engineer or architect hired by tenants to inspect major capital improvements in certain multiple dwellings

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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 03, 2018	referred to housing, construction and community development
Jan 25, 2017	referred to housing, construction and community development

co-Sponsors

2017-S3643 (ACTIVE) - Details

See Assembly Version of this Bill:: A5700
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-405 & 26-511, NYC Ad Cd; amd §6, Emerg Ten Prot Act of 1974
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1443, A1357
2011-2012: S1282, A1784
2013-2014: S837, S86, A2817
2015-2016: S3581, S1721, A1763
2019-2020: S4818, A3241
2021-2022: S5387, A3974
2023-2024: S6852, A4711

2017-S3643 (ACTIVE) - Summary

Provides that no landlord shall deny access to a licensed professional engineer or licensed registered architect hired by any tenant or tenant association representing tenants of a multiple dwelling of six units or more for the purpose of conducting an inspection of a major capital improvement for which an application for a maximum rent adjustment has been filed by the landlord; provides that such inspection shall be conducted after notice to the landlord and during normal business hours; provides for the filing of such inspection report by such tenants with the New York city rent agency for consideration in such application's determination.

2017-S3643 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3643

 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 inspection of major capital improvements
for which rent increases are requested and in relation to extending
the provisions of the rent stabilization law

 SUMMARY OF SPECIFIC PROVISIONS :

This legislation would require landlords of rent-stabilized and rent
controlled apartment buildings who are applying for major capital
improvement increases to allow access to a professional engineer or
architect. hired by the tenant, tenants or tenants' association to
inspect the improvements done by the landlord. In turn, the report
filed by the engineer or architect can be submitted with the NYC rent
agency or the State Division of Housing and Community Renewal by the
tenants in objection to the major capital improvement increase.

 JUSTIFICATION :

In order to receive a major capital improvement rent increase, a
landlord must file a report with the Division of Housing and Community
Renewal (DHCR) which sends a copy of that report to the tenants of the
building. The DHCR then gives the tenants an opportunity to verify the
information in the report, and, if the tenants disagree with the

landlord's claims, to object to the proposed rent increase. In order
for tenants to verify what is stated in the landlord's report, they
must be able to hire experts to inspect the improvements described in
the report. Presently, landlords can deny access to engineers or
architects hired by the tenants. This legislation requires landlords
to allow access to engineers or architects hired by the tenants to
inspect building improvements, and enables tenants to use reports
prepared by their experts to object to the proposed rent increase.

 PRIOR LEGISLATIVE HISTORY :

2015-16: S.1721A/A.1763A - Amend and Recommit to Housing
2013-14: S.86/A.2817 - Referred to Housing
2011-12: S.1282A - Died in Senate Housing
2010-11: S.1443/A.1357 - Died in Senate Housing/Died in Assembly Codes
2009-10: S.1443/A.1357 - Died in Senate Housing/Died in Assembly
Housing
2005-2006: S.4156 Died in Senate Housing Committee/Died in Assembly
Housing
2003-2004: S.627 Died in Senate Housing Committee
2001-2002: S.2043 Died in Senate Housing Committee
1999-2000: S.3671 Died in Senate Housing Committee

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the 120th day after it shall have become
a law.

2017-S3643 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3643
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2017
                                ___________
 
 Introduced  by  Sens.  PARKER, AVELLA -- 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  inspection  of major capital improvements for which rent increases
   are requested and in relation to extending the provisions of the  rent
   stabilization law
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section
 26-405 of the administrative code of the city of New York, as amended by
 section 31 of part A of chapter 20 of the laws of 2015,  is  amended  to
 read as follows:
   (g) There has been since July first, nineteen hundred seventy, a major
 capital  improvement required for the operation, preservation or mainte-
 nance of the structure. An adjustment under this subparagraph [(g)]  for
 any  order  of  the  commissioner issued after the effective date of the
 rent act of 2015 shall be in an amount sufficient to amortize  the  cost
 of  the  improvements pursuant to this subparagraph [(g)] over an eight-
 year period for buildings with thirty-five or fewer units or a nine year
 period for buildings with more  than  [thiry-five]  THIRTY-FIVE  units[,
 or].   NO LANDLORD SHALL DENY ACCESS TO A PROFESSIONAL ENGINEER LICENSED
 TO PRACTICE IN THE STATE OF NEW YORK OR A REGISTERED ARCHITECT  LICENSED
 TO  PRACTICE  IN  THE  STATE OF NEW YORK HIRED BY ANY TENANT, TENANTS OR
 TENANT ASSOCIATION REPRESENTING TENANTS OF A MULTIPLE  DWELLING  OF  SIX
 UNITS  OR  MORE  FOR  THE PURPOSE OF CONDUCTING AN INSPECTION OF A MAJOR
 CAPITAL IMPROVEMENT FOR WHICH AN APPLICATION FOR ADJUSTMENT  OF  MAXIMUM
 RENT  HAS BEEN FILED. SUCH INSPECTION SHALL BE CONDUCTED AFTER NOTICE TO
 THE LANDLORD AND DURING NORMAL BUSINESS HOURS. SUCH TENANT MAY FILE  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06610-01-7

 S. 3643                             2
 
 REPORT  OF THE INSPECTION WITH THE CITY RENT AGENCY FOR CONSIDERATION IN
 THE DETERMINATION OF SUCH APPLICATION; OR
   § 2. Paragraph 6 of subdivision c of section 26-511 of the administra-
 tive code of the city of New York, as amended by section 29 of part A of
 chapter 20 of the laws of 2015, is amended to read as follows:
   (6)  provides  criteria whereby the commissioner may act upon applica-
 tions by owners for increases in  excess  of  the  level  of  fair  rent
 increase  established under this law provided, however, that such crite-
 ria shall provide (a) as to hardship applications, for  a  finding  that
 the level of fair rent increase is not sufficient to enable the owner to
 maintain  approximately  the same average annual net income (which shall
 be computed without regard to debt service, financing costs  or  manage-
 ment  fees)  for the three year period ending on or within six months of
 the date of an application pursuant to such criteria  as  compared  with
 annual  net income, which prevailed on the average over the period nine-
 teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
 first three years of operation if the building was completed since nine-
 teen  hundred  sixty-eight  or  for the first three fiscal years after a
 transfer of title to a new owner provided the new owner can establish to
 the satisfaction of the commissioner that he or she  acquired  title  to
 the  building as a result of a bona fide sale of the entire building and
 that the new owner is unable to obtain requisite records for the  fiscal
 years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
 despite diligent efforts to obtain same from predecessors in  title  and
 further  provided that the new owner can provide financial data covering
 a minimum of six years under his or  her  continuous  and  uninterrupted
 operation  of  the building to meet the three year to three year compar-
 ative test periods herein provided; and (b) as  to  completed  building-
 wide  major  capital  improvements, for a finding that such improvements
 are deemed depreciable under the Internal Revenue Code and that the cost
 is to be amortized over an eight-year period for a building  with  thir-
 ty-five  or  fewer  housing  accommodations, or a nine-year period for a
 building with more than  thirty-five  housing  accommodations,  for  any
 determination  issued  by  the division of housing and community renewal
 after the effective date of the  rent  act  of  2015,  based  upon  cash
 purchase  price  exclusive  of interest or service charges.  NO LANDLORD
 SHALL DENY ACCESS TO A PROFESSIONAL ENGINEER LICENSED TO PRACTICE IN THE
 STATE OF NEW YORK OR A REGISTERED ARCHITECT LICENSED TO PRACTICE IN  THE
 STATE  OF  NEW  YORK  HIRED BY ANY TENANT, TENANTS OR TENANT ASSOCIATION
 REPRESENTING TENANTS OF A MULTIPLE DWELLING OF SIX UNITS OR MORE FOR THE
 PURPOSE OF CONDUCTING AN INSPECTION OF A MAJOR CAPITAL  IMPROVEMENT  FOR
 WHICH AN APPLICATION FOR ADJUSTMENT OF MAXIMUM RENT HAS BEEN FILED. SUCH
 INSPECTION  SHALL  BE  CONDUCTED AFTER NOTICE TO THE LANDLORD AND DURING
 NORMAL BUSINESS HOURS. SUCH TENANT MAY FILE THE REPORT OF THE INSPECTION
 WITH THE CITY RENT AGENCY FOR CONSIDERATION IN THE DETERMINATION OF SUCH
 APPLICATION. Notwithstanding anything to the contrary contained  herein,
 no  hardship  increase  granted  pursuant  to this paragraph shall, when
 added to the annual gross rents,  as  determined  by  the  commissioner,
 exceed  the sum of, (i) the annual operating expenses, (ii) an allowance
 for management services as determined by the commissioner, (iii)  actual
 annual  mortgage debt service (interest and amortization) on its indebt-
 edness to a lending institution, an insurance company, a retirement fund
 or welfare fund which is operated under the supervision of  the  banking
 or  insurance  laws  of  the state of New York or the United States, and
 (iv) eight and one-half percent of that portion of the fair market value
 of the property which exceeds the unpaid principal amount of  the  mort-

 S. 3643                             3
 
 gage  indebtedness  referred to in subparagraph (iii) of this paragraph.
 Fair market value for the purposes of this paragraph shall be six  times
 the  annual gross rent. The collection of any increase in the stabilized
 rent  for  any apartment pursuant to this paragraph shall not exceed six
 percent in any year from the effective date of the  order  granting  the
 increase  over  the  rent set forth in the schedule of gross rents, with
 collectability of any dollar excess above said sum to be spread  forward
 in similar increments and added to the stabilized rent as established or
 set in future years;
   § 3. Paragraph 3 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  30  of  part  A  of
 chapter 20 of the laws of 2015, is amended to read as follows:
   (3)  there has been since January first, nineteen hundred seventy-four
 a major capital improvement required for the operation, preservation  or
 maintenance  of  the structure. An adjustment under this paragraph shall
 be in an amount sufficient to amortize  the  cost  of  the  improvements
 pursuant to this paragraph over an eight-year period for a building with
 thirty-five or fewer housing accommodations, or a nine-year period for a
 building  with  more  than  thirty-five  housing accommodations, for any
 determination issued by the division of housing  and  community  renewal
 after  the  effective  date  of the rent act of 2015[, or].  NO LANDLORD
 SHALL DENY ACCESS TO A PROFESSIONAL ENGINEER LICENSED TO PRACTICE IN THE
 STATE OF NEW YORK OR A REGISTERED ARCHITECT LICENSED TO PRACTICE IN  THE
 STATE  OF  NEW  YORK  HIRED BY ANY TENANT, TENANTS OR TENANT ASSOCIATION
 REPRESENTING TENANTS OF A MULTIPLE DWELLING OF SIX UNITS OR MORE FOR THE
 PURPOSE OF CONDUCTING AN INSPECTION OF A MAJOR CAPITAL  IMPROVEMENT  FOR
 WHICH AN APPLICATION FOR ADJUSTMENT OF MAXIMUM RENT HAS BEEN FILED. SUCH
 INSPECTION  SHALL  BE  CONDUCTED AFTER NOTICE TO THE LANDLORD AND DURING
 NORMAL BUSINESS HOURS. SUCH TENANT MAY FILE THE REPORT OF THE INSPECTION
 WITH THE CITY RENT AGENCY FOR CONSIDERATION IN THE DETERMINATION OF SUCH
 APPLICATION, OR
   § 4. This act shall take effect on the one hundred twentieth day after
 it shall have become a law, except that any rules and regulations neces-
 sary for the timely implementation of this act  on  its  effective  date
 shall be promulgated on or before such date; provided that the amendment
 to  section  26-405  of  the  city  rent  and rehabilitation law made by
 section one of this act shall remain in full force and  effect  only  so
 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
 provided further that the  amendment  to  section  26-511  of  the  rent
 stabilization  law of nineteen hundred sixty-nine 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  and  provided  further that the amendment to section 6 of the
 emergency tenant protection act of nineteen seventy-four made by section
 three 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, as amended.

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Senate Bill S3643

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Sponsored By

Kevin S. Parker