NY State Senate Bill 2017-S3712

Senate Bill S3712

2017-2018 Legislative Session

Prohibits an owner from adjusting the amount of preferential rent upon the renewal of a lease

download bill text pdf

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 26, 2017	referred to housing, construction and community development

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2017-S3712 (ACTIVE) - Details

See Assembly Version of this Bill:: A741
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:: 2009-2010: S2251, A465
2011-2012: S448, A1364
2013-2014: S1775, A5473
2015-2016: S2828, A3809
2019-2020: S2845, A1509, A4349
2021-2022: A5770

2017-S3712 (ACTIVE) - Summary

Prohibits an owner from adjusting the amount of preferential rent, rent charged and paid by the tenant which is less than the legal regulated rent for the housing accommodation, upon the renewal of a lease; only allows the owner to make such adjustments upon a vacancy which is not the result of the failure of the owner to maintain a habitable residence.

2017-S3712 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3712

 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 the regulation of rents

 PURPOSE OR GENERAL IDEA OF BILL :

This bill would prohibit an owner from adjusting the amount of
preferential rent upon the renewal of a lease.

 SUMMARY OF SPECIFIC PROVISIONS :

The bill would prohibit owners from increasing a less than legal
regulated rent to the legal regulated rent upon a lease renewal; only
upon a tenant's vacancy could an owner increase the less than legal
regulated rent. In addition, such a vacancy may not be caused by an
owner or an agent of the owner's the failure to maintain the housing
accommodation in a habitable condition.

 JUSTIFICATION :

As housing costs increase across the City of New York, the
displacement of working families and middle class residents from rent
regulated apartments has resulted in a housing crisis. The
displacement of rent regulated tenants has been aggravated by a

landlord's ability to abandon a preferential rent upon the renewal of
a lease.

Prior to a change in law, a preferential rent was permanent for the
duration of a tenancy and could only be increased upon vacancy.
However, as a result of amendments to the law in 2003, landlords are
now permitted to abandon a discounted, preferential rent and impose
the statutory rent upon vacancy or renewal of a lease. Pursuant to
this provision, tenants throughout New York City have faced sudden and
unanticipated rent increases upon lease renewal. As a result, many
tenants cannot pay new rental payments and have been forced out of
their rent-regulated apartments.

Equally problematic is that there is no "clean hands" requirement that
a landlord conduct him/herself responsibly when abandoning a
preferential rent and imposing the maximum rent upon vacancy. If a
tenant leaves an apartment that is uninhabitable due unsanitary
conditions, lack of heat, hot water, electricity, repairs, etc., a
landlord can precipitously increase rent upon the vacancy of an
apartment. As such, the law encourages bad actors to deprive tenants
of a habitable apartment in order to benefit from the ability to
abandon a preferential rent.

In order to stem the displacement crisis in New York City and preserve
the affordable housing stock available to working families and
moderate-income residents, the rent regulation laws are in need of
reform. This proposed amendment of the preferential rent provisions is
an important step in that direction.

 FISCAL IMPLICATIONS :

None to State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S3712 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3712
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2017
                                ___________
 
 Introduced  by  Sens.  KRUEGER,  ALCANTARA, AVELLA, BAILEY, DIAZ, DILAN,
   HAMILTON, HOYLMAN,  LATIMER,  MONTGOMERY,  PARKER,  PERALTA,  PERKINS,
   RIVERA, SANDERS, SERRANO, SQUADRON, STAVISKY -- 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 the regulation of rents
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (a-2) 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 11 of part A of chapter  20
 of the laws of 2015, is amended to read as follows:
   (a-2)  Provides  that  where the amount of rent charged to and paid by
 the tenant is less than the legal regulated rent for the housing  accom-
 modation, the amount of rent for such housing accommodation which may be
 charged  [upon  renewal  or] upon vacancy thereof, may, at the option of
 the owner, be based upon such  previously  established  legal  regulated
 rent, as adjusted by the most recent applicable guidelines increases and
 other  increases authorized by law; PROVIDED, HOWEVER, THAT SUCH VACANCY
 SHALL NOT BE CAUSED BY THE FAILURE OF THE  OWNER  OR  AN  AGENT  OF  THE
 OWNER,  TO  MAINTAIN  THE  HOUSING  ACCOMMODATION IN COMPLIANCE WITH THE
 WARRANTY OF HABITABILITY SET FORTH IN SUBDIVISION  ONE  OF  SECTION  TWO
 HUNDRED  THIRTY-FIVE-B  OF THE REAL PROPERTY LAW.  Such housing accommo-
 dation shall be excluded from the provisions of  this  act  pursuant  to
 paragraph  thirteen  of  subdivision  a of section five of this act when
 subsequent to vacancy: (i) such legal regulated  rent  is  two  thousand
 five  hundred  dollars per month, or more, for any housing accommodation
 that is, or becomes, vacant after the effective date of the rent act  of
 2011  but  prior  to  the effective date of the rent act of 2015 or (ii)
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06860-01-7

 S. 3712                             2
 
 such legal regulated rent is two  thousand  seven  hundred  dollars  per
 month or more for any housing accommodation that is or becomes vacant on
 or after the rent act of 2015; starting on January 1, 2016, and annually
 thereafter,  the  maximum  legal  regulated  rent  for this deregulation
 threshold, shall also be increased by  the  same  percent  as  the  most
 recent  one  year  renewal  adjustment,  adopted  by the applicable rent
 guidelines board pursuant to the rent stabilization law.
   § 2. Paragraph 14 of subdivision c of section 26-511 of  the  adminis-
 trative code of the city of New York, as amended by section 12 of part A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (14) provides that where the amount of rent charged to and paid by the
 tenant  is  less  than the legal regulated rent for the housing accommo-
 dation, the amount of rent for such housing accommodation which  may  be
 charged  [upon  renewal  or] upon vacancy thereof, may, at the option of
 the owner, be based upon such  previously  established  legal  regulated
 rent, as adjusted by the most recent applicable guidelines increases and
 any  other  increases  authorized  by  law; PROVIDED, HOWEVER, THAT SUCH
 VACANCY SHALL NOT BE CAUSED BY THE FAILURE OF THE OWNER OR AN  AGENT  OF
 THE  OWNER, TO MAINTAIN THE HOUSING ACCOMMODATION IN COMPLIANCE WITH THE
 WARRANTY OF HABITABILITY SET FORTH IN SUBDIVISION  ONE  OF  SECTION  TWO
 HUNDRED  THIRTY-FIVE-B  OF THE REAL PROPERTY LAW.  Such housing accommo-
 dation shall be excluded from the provisions of this  code  pursuant  to
 section  26-504.2  of this chapter when, subsequent to vacancy: (i) such
 legal regulated rent prior to  vacancy  is  two  thousand  five  hundred
 dollars  per  month,  or  more, for any housing accommodation that is or
 becomes vacant after the effective date of the  rent  act  of  2011  but
 prior  to  the effective date of the rent act of 2015 or (ii) such legal
 regulated rent is two thousand seven hundred dollars per month or  more,
 provided,  however that on January 1, 2016, and annually thereafter, the
 maximum legal regulated rent for this deregulation  threshold  shall  be
 adjusted  by  the  same  percentage  as the most recent one year renewal
 adjustment as adjusted by the relevant rent guidelines  board,  for  any
 housing accommodation that is or becomes vacant on or after the rent act
 of 2015.
   §  3.  This act shall take effect immediately; provided, however, that
 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 provided, further, that the amendments 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.

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