BILL NUMBER: S6900

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to repeal paragraphs 3 and 4 of subdivision a of section 26-405
of the administrative code of the city of New York, relating to the
establishment of maximum base rents using the maximum gross building
rental formula

 
PURPOSE:

To eliminate the requirement that owners submit an operation and mainte-
nance expense report biannually to DHCR to obtain a maximum base rental
increase on a rent controlled apartment.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill repeals sections (3) and (4) of subsection a of
section 26-405 of the administrative code of the City of New York, which
requires the division of housing and community renewal to establish
maximum rents using a maximum gross building rental formula, and
              

requires building owners to provide the data necessary for DHCR to apply
the formula.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

The Housing Stability and Tenant Protection Act of 2019 changed the
manner in which maximum rent increases are determined for rent
controlled apartments. Previously, the State Division of Housing and
Community Renewal (DHCR) would calculate maximum base rent increases
based on operation and maintenance expense data submitted by building
owners. The HSTPA superseded this method and set increases at the aver-
age of the five most recent annual rent increases for one-year renewals
approved by the Rent Guidelines Board for rent stabilized apartments.
This bill eliminates two provisions of the New York City Administrative
Code related to the method that HSTPA superseded.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.