S T A T E O F N E W Y O R K
________________________________________________________________________
4773
2017-2018 Regular Sessions
I N S E N A T E
February 28, 2017
___________
Introduced by Sen. BOYLE -- 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 providing that vacancy leases and renewals thereof for
rent regulated housing accommodations shall be for a term of one year
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions a and (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, subdivision a as amended by
chapter 234 of the laws of 1984 and subdivision (a-1) as amended by
section 16-b of part A of chapter 20 of the laws of 2015, are amended to
read as follows:
a. For cities having a population of less than one million and towns
and villages, the state division of housing and community renewal shall
be empowered to implement this act by appropriate regulations. Such
regulations may encompass such speculative or manipulative practices or
renting or leasing practices as the state division of housing and commu-
nity renewal determines constitute or are likely to cause circumvention
of this act. Such regulations shall prohibit practices which are likely
to prevent any person from asserting any right or remedy granted by this
act, including but not limited to retaliatory termination of periodic
tenancies and shall require owners to grant a new one or two year vacan-
cy or renewal lease at the option of the tenant; PROVIDED, HOWEVER, THAT
FOR VACANCY AND RENEWAL LEASES WHICH TAKE EFFECT ON OR AFTER JANUARY
FIRST, TWO THOUSAND EIGHTEEN, SUCH REGULATIONS SHALL REQUIRE OWNERS TO
GRANT A NEW ONE YEAR VACANCY OR RENEWAL LEASE, except where a mortgage
or mortgage commitment existing as of the local effective date of this
act provides that the owner shall not grant a one-year lease; and shall
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07643-01-7
S. 4773 2
prescribe standards with respect to the terms and conditions of new and
renewal leases, additional rent and such related matters as security
deposits, advance rental payments, the use of escalator clauses in leas-
es and provision for increase in rentals for garages and other ancillary
facilities, so as to insure that the level of rent adjustments author-
ized under this law will not be subverted and made ineffective. Any
provision of the regulations permitting an owner to refuse to renew a
lease on grounds that the owner seeks to recover possession of the hous-
ing accommodation for his own use and occupancy or for the use and occu-
pancy of his immediate family shall require that an owner demonstrate
immediate and compelling need and shall not apply where a member of the
housing accommodation is sixty-two years of age or older, has been a
tenant in a housing accommodation in that building for twenty years or
more, or has an impairment which results from anatomical, physiological
or psychological conditions, other than addiction to alcohol, gambling,
or any controlled substance, which are demonstrable by medically accept-
able clinical and laboratory diagnostic techniques, and which are
expected to be permanent and which prevent the tenant from engaging in
any substantial gainful employment.
[(a-1)] A-1. provides that, notwithstanding any provision of this act,
the legal regulated rent for any vacancy lease entered into after the
effective 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
this subdivision, was less than the legal regulated rent, such increase
to the legal regulated rent shall not exceed: five 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 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 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,
S. 4773 3
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.
§ 2. Paragraphs 4, 5-a and 12 of subdivision c of section 26-511 of
the administrative code of the city of New York, paragraph 5-a as
amended by section 16-a of part A of chapter 20 of the laws of 2015, are
amended to read as follows:
(4) includes provisions requiring owners to grant a one or two year
vacancy or renewal lease at the option of the tenant; PROVIDED, HOWEVER,
THAT FOR VACANCY AND RENEWAL LEASES WHICH TAKE EFFECT ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND EIGHTEEN, SUCH CODE SHALL REQUIRE OWNERS TO
GRANT A NEW ONE YEAR VACANCY OR RENEWAL LEASE, except where a mortgage
or mortgage commitment existing as of April first, nineteen hundred
sixty-nine, provides that the mortgagor shall not grant a one year
lease;
(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
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 result-
ing from multiplying such previous legal regulated rent by six-tenths of
one percent and further multiplying the amount of rent increase result-
ing therefrom by the greater of (A) the number of years since the impo-
sition of the last permanent vacancy allowance, or (B) if the rent was
S. 4773 4
not increased by a permanent vacancy allowance since the housing accom-
modation 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 ther-
eof, 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, notwith-
standing the number of vacancy leases entered into in such year.
(12) permits subletting of units subject to this law pursuant to
section two hundred twenty-six-b of the real property law provided that
(a) the rental charged to the subtenant does not exceed the stabilized
rent plus a ten percent surcharge payable to the tenant if the unit
sublet was furnished with the tenant's furniture; (b) the tenant can
establish that at all times he or she has maintained the unit as his or
her primary residence and intends to occupy it as such at the expiration
of the sublease; (c) an owner may terminate the tenancy of a tenant who
sublets or assigns contrary to the terms of this paragraph but no action
or proceeding based on the non-primary residence of a tenant may be
commenced prior to the expiration date of his or her lease; (d) where an
apartment is sublet the prime tenant shall retain the right to a renewal
lease and the rights and status of a tenant in occupancy as they relate
to conversion to condominium or cooperative ownership; (e) where a
tenant violates the provisions of subparagraph (a) of this paragraph the
subtenant shall be entitled to damages of three times the overcharge and
may also be awarded attorneys fees and interest from the date of the
overcharge at the rate of interest payable on a judgment pursuant to
section five thousand four of the civil practice law and rules; (f) the
tenant may not sublet the unit for more than a total of two years,
including the term of the proposed sublease, out of the four-year period
preceding the termination date of the proposed sublease; PROVIDED,
HOWEVER, THAT FOR SUBLEASES COMMENCING ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHTEEN, A TENANT MAY NOT SUBLET THE UNIT FOR MORE THAN ONE
YEAR. The provisions of this subparagraph shall only apply to subleases
commencing on and after July first, nineteen hundred eighty-three; (g)
for the purposes of this paragraph only, the term of the proposed
sublease may extend beyond the term of the tenant's lease. In such
event, such sublease shall be subject to the tenant's right to a renewal
lease. The subtenant shall have no right to a renewal lease. It shall be
unreasonable for an owner to refuse to consent to a sublease solely
because such sublease extends beyond the tenant's lease; and (h)
notwithstanding the provisions of section two hundred twenty-six-b of
the real property law, a not-for-profit hospital shall have the right to
sublet any housing accommodation leased by it to its affiliated person-
nel without requiring the landlord's consent to any such sublease and
without being bound by the provisions of subparagraphs (b), (c) and (f)
of this paragraph. Commencing with the effective date of this subpara-
S. 4773 5
graph, whenever a not-for-profit hospital executes a renewal lease for a
housing accommodation, the legal regulated rent shall be increased by a
sum equal to fifteen percent of the previous lease rental for such hous-
ing accommodation, hereinafter referred to as a vacancy surcharge,
unless the landlord shall have received within the seven year period
prior to the commencement date of such renewal lease any vacancy
increases or vacancy surcharges allocable to the said housing accommo-
dation. In the event the landlord shall have received any such vacancy
increases or vacancy surcharges during such seven year period, the
vacancy surcharge shall be reduced by the amount received by any such
vacancy increase or vacancy surcharges.
§ 3. This act shall take effect immediately; provided that:
(a) 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
(b) the amendments to section 26-511 of chapter 4 of title 26 of the
administrative code of the city of New York 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.
