S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3416
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by  M.  of  A.  GALLAGHER  --  read once and referred to the
   Committee on Housing
 
 AN ACT to amend the emergency tenant protection act of  nineteen  seven-
   ty-four,  the administrative code of the city of New York and the real
   property tax law, in relation to reporting rent concessions

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent and findings.  The legislature finds and
 declares  that  the  use of rental concessions in rent stabilized apart-
 ments to charge one rent to tenants while reporting another rent to  the
 division of housing and community renewal undermines the purposes of the
 rent stabilization laws.  It is the intent of the legislature to clarify
 that,  for  the purposes of the emergency tenant protection act of nine-
 teen seventy-four or any  successor  legislation,  the  amount  of  rent
 charged  to  and paid by the tenant or any initial adjusted monthly rent
 charged and paid refers to the  net  effective  rent,  which  sum  shall
 reflect  the  value of any rental concession. In order to effectuate the
 meaning and intent of the rent stabilization laws, rents reported to the
 division should equal the net effective rent paid by a tenant based upon
 the value of any and all concessions, and in this respect  the  applica-
 tion  of the law will be facilitated by including rental concessions and
 their value in annual rent registration statements.
   § 2. Subdivision f of section 12-a of section 4 of chapter 576 of  the
 laws  of 1974, constituting the emergency tenant protection act of 1974,
 as added by chapter 403 of the laws of  1983,  is  amended  to  read  as
 follows:
   f.  An annual statement shall be filed containing the current rent for
 each unit and such other information contained in subdivision a of  this
 section  as  shall  be required by the division. The owner shall provide
 each tenant then in occupancy with a copy of that portion of such annual
 statement as pertains to the tenant's unit.  SUCH ANNUAL STATEMENT SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00268-02-3
              

 A. 3416                             2
 
 ALSO CONTAIN INFORMATION RELATING TO ANY AND ALL CONCESSIONS GRANTED FOR
 A UNIT AND, IN ANY CASE WHERE A CONCESSION INCLUDES A DISCOUNT  ON  RENT
 PAID  FOR  A UNIT BY THE TENANT, THE CURRENT RENT FOR EACH UNIT REPORTED
 BY THE OWNER TO THE DIVISION SHALL EQUAL THE NET EFFECTIVE RENT FOR SUCH
 UNIT BASED UPON THE VALUE OF SUCH CONCESSION.
   (1)  FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "CONCESSION" SHALL
 MEAN ANY TEMPORARY ADJUSTMENT TO A LEASE INTENDED TO INDUCE A TENANT  TO
 SIGN  OR  RENEW  SUCH  LEASE,  INCLUDING  WITHOUT  LIMITATION  A REBATE,
 DISCOUNT, WAIVER, LICENSE AGREEMENT, PRORATION, MONEY PAYMENT, OR  PHYS-
 ICAL GOOD OR SERVICE OR ACCESS THERETO.
   (2)  FOR  THE  PURPOSES  OF  THIS SUBDIVISION, THE TERM "NET EFFECTIVE
 RENT" SHALL MEAN THE AVERAGE MONTHLY RENT  CHARGED  TO  AND  PAID  BY  A
 TENANT  OVER  THE DURATION OF A TENANT'S OCCUPANCY OF A UNIT PURSUANT TO
 AN UNEXPIRED LEASE AND ANY RELATED RIDER OR AGREEMENT.
   § 3.  Subdivision f of section 26-517 of the  administrative  code  of
 the city of New York is amended to read as follows:
   f.  An annual statement shall be filed containing the current rent for
 each unit and such other information contained in subdivision a of  this
 section  as  shall  be required by the division. The owner shall provide
 each tenant then in occupancy with a copy of that portion of such annual
 statement as pertains to the tenant's unit.  SUCH ANNUAL STATEMENT SHALL
 ALSO CONTAIN INFORMATION RELATING TO ANY AND ALL CONCESSIONS GRANTED FOR
 A UNIT AND, IN ANY CASE WHERE A CONCESSION INCLUDES A DISCOUNT  ON  RENT
 PAID  FOR  A UNIT BY THE TENANT, THE CURRENT RENT FOR EACH UNIT REPORTED
 BY THE OWNER TO THE DIVISION SHALL EQUAL THE NET EFFECTIVE RENT FOR SUCH
 UNIT BASED UPON THE VALUE OF SUCH CONCESSION.
   (1) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "CONCESSION"  SHALL
 MEAN  ANY TEMPORARY ADJUSTMENT TO A LEASE INTENDED TO INDUCE A TENANT TO
 SIGN OR  RENEW  SUCH  LEASE,  INCLUDING  WITHOUT  LIMITATION  A  REBATE,
 DISCOUNT,  WAIVER, LICENSE AGREEMENT, PRORATION, MONEY PAYMENT, OR PHYS-
 ICAL GOOD OR SERVICE OR ACCESS THERETO.
   (2) FOR THE PURPOSES OF THIS  SUBDIVISION,  THE  TERM  "NET  EFFECTIVE
 RENT"  SHALL  MEAN  THE  AVERAGE  MONTHLY  RENT CHARGED TO AND PAID BY A
 TENANT OVER THE DURATION OF A TENANT'S OCCUPANCY OF A UNIT  PURSUANT  TO
 AN UNEXPIRED LEASE AND ANY RELATED RIDER OR AGREEMENT.
   § 4. Paragraph a of subdivision 1 of section 421-a of the real proper-
 ty  tax law, as amended by chapter 857 of the laws of 1975 and as renum-
 bered by chapter 110 of the laws of 1977, is amended to read as follows:
   a. "Adjusted Monthly Rent." The rent payable per month as provided  in
 the  first effective lease or occupancy agreement upon initial occupancy
 of a rental dwelling unit of  a  multiple  dwelling  after  construction
 aided by exemption under this section less the cost of providing parking
 facilities  and electricity, gas, cooking fuel and other utilities other
 than heat and hot water to occupants of such dwelling units,  WHICH  SUM
 SHALL  REFLECT  THE  VALUE  OF  ANY  AND ALL CONCESSIONS AS SUCH TERM IS
 DEFINED BY SUBDIVISION F OF SECTION TWELVE-A  OF  THE  EMERGENCY  TENANT
 PROTECTION ACT OF 1974.
   §  5.  This act shall take effect immediately; provided, however, that
 the amendments to section 26-517 of chapter 4 of title 26 of the  admin-
 istrative code of the city of New York made by section three 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.