BILL NUMBER: S2064

SPONSOR: SERRANO
 
TITLE OF BILL:  An act to amend the multiple dwelling law, in relation
to rent reduction in cases of submetered utility service

 
PURPOSE:

The bill would require a rent reduction equal to the amount of the addi-
tional charge for the utilities for tenants in buildings which convert
to submetering of utilities.

 
SUMMARY OF PROVISIONS:

The bill proposes adding a section 302-d to the multiple dwelling law
which would, in apartment buildings which convert to submetering,
require a rent reduction equal to the additional utility cost, and
compel the Department of Housing and Community Renewal to promulgate an
appeals process by which tenants can challenge the amount of the
reduction and have it adjusted. Also, within ninety days of the enact-
ment of this legislation, the DHCR must review the rent reductions which
              

have already been made in submetered buildings in order to ensure that
they are equal to the amount of the utility charges.

 
JUSTIFICATION:

Many residential apartment buildings in New York include charges for
utilities in the rent. However an increasing number of landlords are
installing "submeters" which monitor utility use individually for each
unit in the building. After the submeters are installed, the landlords
charge tenants for utilities in addition to the rent. Under current law,
the additional utility charges are accompanied by a rent reduction set
by the Division of Housing and Community Renewal. These rent reductions,
however, are based on the number of rooms in an apartment and do not
reflect the actual utility usage costs of the tenants. This leads to
many tenants having to pay more than they had agreed to pay when they
signed their lease in order to stay in their apartments after their
building converts to submetering.

This bill mandates that the rent reductions which tenants receive after
their building is converted must be based on their actual utility costs
in order to protect against an increase in the cost of living for
tenants. This legislation would also require the DHCR to, within 90
days, review the rent reductions which have already been made, and to
modify them, if necessary, in order to bring them in line with tenants'
actual costs. The bill would also require the DHCR to create an appeals
process by which tenants can challenge their rent reductions.

Currently rent reductions are based on the New York city Housing Vacancy
Survey's average monthly costs for utilities. In the Survey, tenants
were asked to "estimate" their monthly utility costs. This produced
highly questionable data, upon which the DHCR's rent reductions were
based.

 
LEGISLATIVE HISTORY:

2009-2010: Senate & Assembly Referred to Housing, Construction & Commu-
nity Development

2011-2012: S.2757- Referred to Housing, Construction and Community
Development
2013-2014: S.919- Referred to Housing, Construction and Community Devel-
opment
2015-2016: S.1160 - Referred to Housing, Construction and Community
Development
2017-2018: S.3448 - Referred to Housing, Construction and Community
Development

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.