BILL NUMBER: S692

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act in relation to requiring the division of housing and community
renewal to calculate the period of rent reduction due to diminution of
services from the date of actual diminution of the services

 
SUMMARY OF PROVISIONS:

Section One of the legislation states that notwithstanding any law,
rule, or regulation to the contrary, any rent reduction attributable to
diminution of services shall be calculated by the division of housing
and community renewal to be effective upon the date that the diminution
of service commenced, regardless of when that diminution of services was
reported to the division or the date upon which the diminution of
services was addressed by the division. Such rent reduction shall be
applicable to the entire period in which it is found the services were
not maintained in full.

 
              

JUSTIFICATION:

This bill directs the Division of Housing and Community Renewal (DHCR)
that any rent reduction for diminution of services should be effective
for the entire period for which it is found that the services have not
been maintained.

Current DHCR policy with respect to rent reductions for regulated
tenants who have experienced a diminution of services in their apartment
or building is incompatible with the Rent Stabilization Code (RSC), and
runs the risk of denying tenants compensation to which they are other-
wise entitled.

The DHCR's "Fact Sheet 14: Rent Reductions for Decreased Services" says
that rent regulated tenants who experience a decrease in service in an
individual apartment or building-wide must first contact the owner about
the complaint in writing. If that does not resolve the problem, the
tenant may file a complaint with the DHCR. If the evidence indicates
that the owner failed to maintain required services, the DHCR can issue
a written order that directs the owner to restore services and reduces
the rent for the apartment.

It is DHCR's practice, and Fact Sheet 14 states, that "The effective
date for rent stabilized tenants is retroactive back to the first day of
the month following DHCR's service of the complaint on the owner.  For
rent controlled tenants, the effective date is the first day of the
month after the order is issued." However, if tenants are denied their
contractually obligated services, their remedy should not be limited to
the period after DHCR has had time to serve notice on the owner.

In fact, Section 2523.4(a) (1) of the RSC provides that "the DHCR shall
so reduce the rent for the period for which it is found that the owner
has failed to maintain required services," This bill would bring DHCR
practice into compliance with the RSC.

 
LEGISLATIVE HISTORY:

S.0015 of 2019-2020 (Hoylman): Died in Housing
A.8164 of 2019-2020 (Rozic): Died in Cities
S.0094 of 2017-2018 (Hoylman): Died in Cities
S.0498 of 2015-2016 (Hoylman): Died in Cities
S.4884-A of 2013-2014 (Hoylman): Died in Cities

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all pending
and future proceedings.