NY State Senate Bill 2021-S2848

Senate Bill S2848

2021-2022 Legislative Session

Requires limited profit housing company to show maintenance of essential services before approval of rent increases

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to housing, construction and community development
Jan 26, 2021	referred to housing, construction and community development

2021-S2848 (ACTIVE) - Details

See Assembly Version of this Bill:: A2032
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Amd §§12 & 31, Priv Hous Fin L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1658, A540
2011-2012: S736, A193
2013-2014: S207, A454
2015-2016: S586, A87
2017-2018: S150, A1116
2019-2020: S5118, A3146

2021-S2848 (ACTIVE) - Summary

Defines, for purposes of the Mitchell-Lama housing projects, "essential services" which landlords in limited-profit housing companies are obligated to provide and requires that any authorized maximum average monthly rental increase shall be conditioned on the continued maintenance of such defined services.

2021-S2848 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2848

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to defining
"essential services" and conditioning approval of increase of maximum
rentals upon maintenance of all essential services

 
PURPOSE:

To ensure that rent increases in Mitchell-Lama buildings are granted
only when the housing company or landlord maintain essential services or
when the increases are conditioned upon their being restored.

 
SUMMARY OF PROVISIONS:

Section one of the bill would amend section 12 of the Private Housing
Finance Law by adding a new subdivision 17 which defines "essential
services."

Section two of the bill would amend section 31 of the Private Housing
Finance Law by adding a new subdivision which requires that before any
rent increase is approved by the commissioner or supervising agency in
respect to a Mitchell-Lama building, the housing company or other appli-
cant applying for the increase must be found to be maintaining all
essential services and that no increase shall be approved where there is
a certification that the dwelling accommodation is a fire hazard or is
in a dangerous condition, or is detrimental to life or health or is
occupied in violation of law.  Upon a showing by the company or appli-
cant that an increase in rent is required to maintain essential services
or to remedy any hazardous or dangerous condition, the commissioner or
supervising agency may approve in an increase in rent.

Section three sets forth the effective date.

 
JUSTIFICATION:

Mitchell-Lama buildings are operated on what is, in essence, a cost plus
Formula. Therefore, rentals are paid to a level necessary to maintain
essential services. If rentals are inadequate, the housing company may
apply for an increase in such rentals. There is, therefore; no excuse
for a housing company or landlord not to provide essential services to
tenants. It is particularly unjustified for tenants to face a rent
increase in a Mitchell-Lama building when essential services are not
being maintained. The bill will ensure that where landlords are guaran-
teed a specific rate of return, they are also, at the very least,
compelled to maintain essential services if an increase is to be grant-
ed. Since there may be situations where the landlord may need a rent
increase in order to maintain essential services, or to cure dangerous
conditions, a rent increase should be permissible contingent upon the
necessary improvements being made in a short-fixed period of time.

 
PRIOR LEGISLATIVE HISTORY:

2020: S5118 (Kavanagh) / A3146 (Dinowitz) - HOUSING/ housing

2019: S5118 (Kavanagh) / A3146 (Dinowitz) - HOUSING/ housing

2018: A1116 (Dinowitz) - Ordered to third reading cal.76

2017: S150 (Squadron)/A1116 (Dinowitz)- Referred to Housing,
Construction, and Community Development/Advanced to third reading
cal.151

2016: S586 (Squadron)/A87 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Advanced to third reading
cal.495

2015: S586 (Squadron)/A87 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Advanced to third reading
cal.218

2014: S207 (Squadron)/A451 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Passed Assembly

2013: S207 (Squadron)/A451 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Passed Assembly

2012: S736 (Squadron)/A193 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Passed Assembly

2011: S736 (Squadron)/A193 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Passed Assembly

2010: S1658 (Espada)/A540 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Passed Assembly

2009: S1658 (Espada)/A540 (Dinowitz) - Referred to Housing,
Construction, and Community Development/Passed Assembly

2008: A531 (Dinowitz)- Passed Assembly and died in Senate Housing,
Construction, and Community Development

2007: A531 (Dinowitz) - Passed Assembly and died in Senate Rules

2006: A1225 (Dinowitz) - Passed Assembly and died in Senate Housing,
Construction, and Community Development

2005: A1225 (Dinowitz) - Referred to Housing

2004: A6071 (Kaufman) - Passed Assembly and died in Senate Housing,
Construction, and Community Development

2003: A6071 (Kaufman) - Referred to Housing

2002: S2854 (Velella)/A1434 (Kaufman) - Referred to Housing,
Construction, and Community Development/Passed Assembly

2001: S2854 (Velella)/A1434 (Kaufman) - Referred to Housing,
Construction, and Community Development/Passed Assembly

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2021-S2848 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2848
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 private housing finance law, in relation to defining
   "essential  services" and conditioning approval of increase of maximum
   rentals upon maintenance of all essential services
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 12 of the private housing finance law is amended by
 adding a new subdivision 17 to read as follows:
   17.  "ESSENTIAL  SERVICES". THOSE ESSENTIAL SERVICES WHICH THE COMPANY
 FURNISHED OR WHICH IT WAS OBLIGATED TO FURNISH ON THE DATE OF  OCCUPANCY
 AND  WHICH  WERE  INCLUDED IN THE MAXIMUM RENT FOR THE DWELLING ACCOMMO-
 DATIONS ON THAT DATE. THESE MAY INCLUDE, BUT  ARE  NOT  LIMITED  TO  THE
 FOLLOWING:   REPAIRS AND MAINTENANCE, THE FURNISHING OF LIGHT, HEAT, HOT
 AND COLD WATER, AND ELEVATOR SERVICE.  THIS SUBDIVISION SHALL NOT  APPLY
 WITH  RESPECT  TO SERVICES WHICH SHALL HAVE BEEN REDUCED OR DISCONTINUED
 PURSUANT TO THE EXPRESS CONSENT OF THE DIVISION.
   § 2. Section 31 of the private  housing  finance  law  is  amended  by
 adding a new subdivision 1-a to read as follows:
   1-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER AND EXCEPT AS
 OTHERWISE  PROVIDED IN THIS SUBDIVISION, THE COMMISSIONER OR SUPERVISING
 AGENCY SHALL NOT APPROVE AN INCREASE  IN  THE  PRESENT  MAXIMUM  AVERAGE
 MONTHLY  RENTAL  UNLESS  THE  COMPANY  OR OTHER APPLICANT IS FOUND TO BE
 MAINTAINING ALL ESSENTIAL SERVICES FURNISHED OR REQUIRED TO BE FURNISHED
 AS OF THE DATE OF THE ISSUANCE OF THE ORDER AUTHORIZING A RENT  INCREASE
 AND  SUCH  INCREASE  SHALL  BE  CONDITIONED  ON  THE MAINTENANCE OF SUCH
 SERVICES THEREAFTER. EXCEPT AS OTHERWISE PROVIDED IN  THIS  SUBDIVISION,
 NO  RENT  INCREASE SHALL BE APPROVED WHERE THE APPROPRIATE DEPARTMENT OR
 AGENCY HAVING JURISDICTION CERTIFIES THE  DWELLING  ACCOMMODATION  IS  A
 FIRE HAZARD OR IN A CONTINUED DANGEROUS CONDITION OR DETRIMENTAL TO LIFE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05480-01-1

 S. 2848                             2
 
 OR  HEALTH  OR  IS  OCCUPIED  IN VIOLATION OF LAW. UPON A SHOWING BY THE
 COMPANY OR OTHER APPLICANT THAT AN INCREASE IN MAXIMUM  AVERAGE  MONTHLY
 RENTALS  IS  REQUIRED IN ORDER TO MAINTAIN ESSENTIAL SERVICES OR TO CURE
 ANY  HAZARDOUS  OR  DANGEROUS CONDITION THEN, IN SUCH EVENT, THE COMMIS-
 SIONER OR SUPERVISING AGENCY MAY APPROVE AN  INCREASE  IN  SUCH  MAXIMUM
 AVERAGE  MONTHLY RENTALS PROVIDED THAT SUCH INCREASE SHALL BE CONTINGENT
 UPON THE RESTORATION AND  CONTINUANCE  OF  ESSENTIAL  SERVICES  AND  THE
 REMOVAL  OF  HAZARDOUS  OR DANGEROUS CONDITIONS WITHIN A FIXED PERIOD OF
 TIME WHICH SHALL BE AS SHORT AS REASONABLY PRACTICABLE UNDER THE CIRCUM-
 STANCES.
   § 3. This act shall take effect immediately.

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