NY State Senate Bill 2017-S6527

Senate Bill S6527

2017-2018 Legislative Session

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

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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
May 31, 2017	referred to housing, construction and community development

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2017-S6527 (ACTIVE) - Details

See Assembly Version of this Bill:: A6285
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-S6527 (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-S6527 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6527

 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 :

The purpose of this bill is to prohibit an owner from adjusting the
amount of preferential rent upon the renewal of a lease.

 SUMMARY OF PROVISIONS :

This bill would prohibit a landlord from switching to the legal
regulated rent upon a lease renewal when the tenant's lease had
commenced with a preferential rent; only upon a tenant's vacancy could
an owner increase the less than legal regulated rent. In addition,
such a vacancy could 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 FOR STATE AND LOCAL GOVERNMENTS :

None.

2017-S6527 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6527
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 31, 2017
                                ___________
 
 Introduced  by  Sen. KRUEGER -- 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; AND FURTHER PROVIDED
 THAT SUCH INCREASE TO THE PREVIOUSLY ESTABLISHED  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 REGU-
 LATED RENT IF THE LAST VACANCY LEASE COMMENCED LESS THAN FOUR YEARS AGO;
 AND TWENTY PERCENT OF THE PREVIOUS LEGAL  REGULATED  RENT  IF  THE  LAST
 VACANCY  LEASE  COMMENCED  FOUR OR MORE YEARS AGO. 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

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06860-03-7

 S. 6527                             2
 
 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 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;  AND  FURTHER  PROVIDED
 THAT  SUCH  INCREASE  TO THE PREVIOUSLY ESTABLISHED 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  REGU-
 LATED RENT IF THE LAST VACANCY LEASE COMMENCED LESS THAN FOUR YEARS AGO;
 AND  TWENTY  PERCENT  OF  THE  PREVIOUS LEGAL REGULATED RENT IF THE LAST
 VACANCY LEASE COMMENCED FOUR OR MORE YEARS AGO.  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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