S. 7106 2
thousand nineteen that amended this paragraph, of the total actual cost
incurred by the landlord up to fifteen thousand dollars in providing
such reasonable and verifiable modification or increase in dwelling
space, furniture, furnishings, or equipment, including the cost of
installation but excluding finance charges and any costs that exceed
reasonable costs established by rules and regulations promulgated by the
division of housing and community renewal. Such rules and regulations
shall include: (i) requirements for work to be done by licensed
contractors and a prohibition on common ownership between the landlord
and the contractor or vendor; and (ii) a requirement that the owner
resolve within the dwelling space all outstanding hazardous or imme-
diately hazardous violations of the Uniform Fire Prevention and Building
Code (Uniform Code), New York City Fire Code, or New York City Building
and Housing Maintenance Codes, if applicable] SEPTEMBER TWENTY-FOURTH,
TWO THOUSAND ELEVEN, OF THE TOTAL COST INCURRED BY THE LANDLORD IN
PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING SPACE, SERVICES,
FURNITURE, FURNISHINGS OR EQUIPMENT, INCLUDING THE COST OF INSTALLATION,
BUT EXCLUDING FINANCE CHARGES. Provided further that an owner who is
entitled to a rent increase pursuant to this paragraph shall not be
entitled to a further rent increase based upon the installation of simi-
lar equipment, or new furniture or furnishings within the useful life of
such new equipment, or new furniture or furnishings. [Provided further
that the recoverable costs incurred by the landlord, pursuant to this
paragraph, shall be limited to an aggregate cost of fifteen thousand
dollars that may be expended on no more than three separate individual
apartment improvements in a fifteen year period beginning with the first
individual apartment improvement on or after June fourteenth, two thou-
sand nineteen. Provided further that increases to the legal regulated
rent pursuant to this paragraph shall be removed from the legal regu-
lated rent thirty years from the date the increase became effective
inclusive of any increases granted by the applicable rent guidelines
board.]
§ 2. Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 19 of part Q
of chapter 39 of the laws of 2019, is amended to read as follows:
(13) provides that an owner is entitled to a rent increase where there
has been a substantial modification or increase of dwelling space OR AN
INCREASE IN THE SERVICES, or installation of new equipment or improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing accommodation, on written [informed] tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. The [temporary] PERMANENT increase in the legal
regulated rent for the affected housing accommodation shall be [one-one
hundred sixty-eighth] ONE-FORTIETH, in the case of a building with thir-
ty-five or fewer housing accommodations [or one-one hundred eightieth],
OR ONE-SIXTIETH in the case of a building with more than thirty-five
housing accommodations where such PERMANENT increase takes effect on or
after [the effective date of the chapter of the laws of two thousand
nineteen that amended this paragraph, of the total actual cost incurred
by the landlord in providing such reasonable and verifiable modification
or increase in dwelling space, furniture, furnishings, or equipment,
including the cost of installation but excluding finance charges and any
costs that exceed reasonable costs established by rules and regulations
promulgated by the division of housing and community renewal. Such rules
and regulations shall include: (i) requirements for work to be done by
licensed contractors and prohibit common ownership between the landlord
S. 7106 3
and the contractor or vendor; and (ii) a requirement that the owner
resolve within the dwelling space all outstanding hazardous or imme-
diately hazardous violations of the Uniform Fire Prevention and Building
Code (Uniform Code), New York City Fire Code, or New York City Building
and Housing Maintenance Codes, if applicable] SEPTEMBER TWENTY-FOURTH,
TWO THOUSAND ELEVEN, OF THE TOTAL COST INCURRED BY THE LANDLORD IN
PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING SPACE, SERVICES,
FURNITURE, FURNISHINGS OR EQUIPMENT, INCLUDING THE COST OF INSTALLATION,
BY EXCLUDING FINANCE CHARGES. Provided further that an owner who is
entitled to a rent increase pursuant to this paragraph shall not be
entitled to a further rent increase based upon the installation of simi-
lar equipment, or new furniture or furnishings within the useful life of
such new equipment, or new furniture or furnishings. [Provided further
that the recoverable costs incurred by the landlord, pursuant to this
paragraph, shall be limited to an aggregate cost of fifteen thousand
dollars that may be expended on no more than three separate individual
apartment improvements in a fifteen year period beginning with the first
individual apartment improvement on or after June fourteenth, two thou-
sand nineteen. Provided further that increases to the legal regulated
rent pursuant to this paragraph shall be removed from the legal regu-
lated rent thirty years from the date the increase became effective
inclusive of any increases granted by the applicable rent guidelines
board.]
§ 3. Subparagraph (e) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section 20 of part Q of chapter 39 of the laws of 2019, is amended to
read as follows:
(e) The landlord and tenant by mutual voluntary written agreement
[demonstrating informed consent] agree to a substantial increase or
decrease in dwelling space or a change in THE SERVICES, furniture,
furnishings or equipment provided in the housing accommodations. An
adjustment under this subparagraph shall be equal to [one-one hundred
sixty-eighth] ONE-FORTIETH, in the case of a building with thirty-five
or fewer housing accommodations [or one-one hundred eightieth], OR ONE-
SIXTIETH, in the case of a building with more than thirty-five housing
accommodations where such [temporary] adjustment takes effect on or
after [the effective date of the chapter of the laws of two thousand
nineteen that amended this subparagraph, of the total actual cost
incurred by the landlord in providing such reasonable and verifiable
modification or increase in dwelling space, furniture, furnishings, or
equipment, including the cost of installation but excluding finance
charges and any costs that exceed reasonable costs established by rules
and regulations promulgated by the division of housing and community
renewal. Such rules and regulations shall include: (i) requirements for
work to be done by licensed contractors and prohibit common ownership
between the landlord and the contractor or vendor; and (ii) a require-
ment that the owner resolve within the dwelling space all outstanding
hazardous or immediately hazardous violations of the Uniform Fire
Prevention and Building Code (Uniform Code), New York City Fire Code, or
New York City Building and Housing Maintenance Codes, if applicable.
Provided] SEPTEMBER TWENTY-FOURTH, TWO THOUSAND ELEVEN, OF THE TOTAL
COST INCURRED BY THE LANDLORD IN PROVIDING SUCH MODIFICATION OR INCREASE
IN DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT,
INCLUDING THE COST OF INSTALLATION, BUT EXCLUDING FINANCE CHARGES,
PROVIDED further that an owner who is entitled to a rent increase pursu-
ant to this subparagraph shall not be entitled to a further rent
S. 7106 4
increase based upon the installation of similar equipment, or new furni-
ture or furnishings within the useful life of such new equipment, or new
furniture or furnishings. [Provided further that the recoverable costs
incurred by the landlord, pursuant to this subparagraph shall be limited
to an aggregate cost of fifteen thousand dollars that may be expended on
no more than three separate individual apartment improvements in a
fifteen year period beginning with the first individual apartment
improvement on or after June fourteenth, two thousand nineteen. Provided
further that increases to the legal regulated rent pursuant to this
subparagraph shall be removed from the legal regulated rent thirty years
from the date the increase became effective inclusive of any increases
granted by the applicable rent guidelines board.] The owner shall give
written notice to the city rent agency of any such [temporary] adjust-
ment pursuant to this subparagraph; or
§ 4. Section 26-511.1 of the administrative code of the city of New
York is REPEALED.
§ 5. Section 26-405.1 of the administrative code of the city of New
York is REPEALED.
§ 6. Section 10-b of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, is REPEALED.
§ 7. Section 8-a of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, is REPEALED.
§ 8. Paragraph 2 of subdivision 3-a and subparagraphs 7 and 8 of the
second undesignated paragraph of paragraph (a) of subdivision 4 of
section 4 of chapter 274 of the laws of 1946, constituting the emergency
housing rent control law, paragraph 2 of subdivision 3-a and subpara-
graph 8 of the second undesignated paragraph of paragraph (a) of subdi-
vision 4 as amended by section 8 of part K of chapter 36 of the laws of
2019, subparagraph 7 of the second undesignated paragraph of paragraph
(a) of subdivision 4 as separately amended by section 14 of part K of
chapter 36 and section 25 of part Q of chapter 39 of the laws of 2019,
are amended to read as follows:
(2) the amount of increases in maximum rent authorized by order
because of increases in dwelling space, services, furniture, furnishings
or equipment [and the amount of the temporary increase authorized by
order because of a major capital improvement], OR MAJOR CAPITAL IMPROVE-
MENTS.
(7) there has been since March first, nineteen hundred fifty, a major
capital improvement [essential] REQUIRED for the OPERATION, preserva-
tion[, energy efficiency, functionality, or infrastructure of the entire
building, improvement of the structure including heating, windows,
plumbing and roofing, but shall not be for operational costs or unneces-
sary cosmetic improvements] OR MAINTENANCE OF THE STRUCTURE; which for
any order of the commissioner issued after the effective date of the
[chapter of the laws of two thousand nineteen that amended this para-
graph] RENT ACT OF 2015 the cost of such improvement shall be amortized
over [a twelve-year] AN EIGHT-YEAR period for buildings with thirty-five
or fewer units or a [twelve and one-half year] NINE-YEAR period for
buildings with more than thirty-five units[, and shall be removed from
the legal regulated rent thirty years from the date the increase became
effective inclusive of any increases granted by the applicable rent
guidelines board. Temporary major capital improvement increases shall be
collectible prospectively on the first day of the first month beginning
sixty days from the date of mailing notice of approval to the tenant.
Such notice shall disclose the total monthly increase in rent and the
S. 7106 5
first month in which the tenant would be required to pay the temporary
increase. An approval for a temporary major capital improvement increase
shall not include retroactive payments. The collection of any increase
shall not exceed two percent in any year from the effective date of the
order granting the increase over the rent set forth in the schedule of
gross rents, with collectability of any dollar excess above said sum to
be spread forward in similar increments and added to the rent as estab-
lished or set in future years. Upon vacancy, the landlord may add any
remaining balance of the temporary major capital improvement increase to
the legal regulated rent. Notwithstanding any other provision of the
law, for any renewal lease commencing on or after June 14, 2019, the
collection of any rent increases due to any major capital improvements
approved on or after June 16, 2012 and before June 16, 2019 shall not
exceed two percent in any year for any tenant in occupancy on the date
the major capital improvement was approved; provided, however, where an
application for a temporary major capital improvement increase has been
filed, a tenant shall have sixty days from the date of mailing of a
notice of a proceeding in which to answer or reply. The state division
of housing and community renewal shall provide any responding tenant
with the reasons for the division's approval or denial of such applica-
tion]; or
(8) there has been since March first, nineteen hundred fifty, in
structures containing more than four housing accommodations, other
improvements made with the express [informed] consent of the tenants in
occupancy of at least seventy-five per centum of the housing accommo-
dations, provided, however, that no adjustment granted hereunder shall
exceed [two] FIFTEEN per centum unless the tenants have agreed to a
higher percentage of increase, as herein provided;
§ 9. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as amended by section 26 of part Q of
chapter 39 of the laws of 2019, is amended to read as follows:
(3) there has been since January first, nineteen hundred seventy-four
a major capital improvement [essential for the preservation, energy
efficiency, functionality, or infrastructure of the entire building,
improvement of the structure including heating, windows, plumbing and
roofing, but shall not be for operation costs or unnecessary cosmetic
improvements] REQUIRED FOR THE OPERATION, PRESERVATION OR MAINTENANCE OF
THE STRUCTURE. An adjustment under this paragraph shall be in an amount
sufficient to amortize the cost of the improvements pursuant to this
paragraph over [a twelve-year] AN EIGHT-YEAR period for a building with
thirty-five or fewer housing accommodations, or a [twelve and one-half]
NINE-YEAR period for a building with more than thirty-five housing
accommodations [and shall be removed from the legal regulated rent thir-
ty years from the date the increase became effective inclusive of any
increases granted by the applicable rent guidelines board], for any
determination issued by the division of housing and community renewal
after the effective date of the [chapter of the laws of two thousand
nineteen that amended this paragraph. Temporary major capital improve-
ment increases shall be collectable prospectively on the first day of
the first month beginning sixty days from the date of mailing notice of
approval to the tenant. Such notice shall disclose the total monthly
increase in rent and the first month in which the tenant would be
required to pay the temporary increase. An approval for a temporary
major capital improvement increase shall not include retroactive
payments. The collection of any increase shall not exceed two percent in
S. 7106 6
any year from the effective date of the order granting the increase over
the rent set forth in the schedule of gross rents, with collectability
of any dollar excess above said sum to be spread forward in similar
increments and added to the rent as established or set in future years.
Upon vacancy, the landlord may add any remaining balance of the tempo-
rary major capital improvement increase to the legal regulated rent.
Notwithstanding any other provision of the law, the collection of any
rent increases for any renewal lease commencing on or after June 14,
2019, due to any major capital improvements approved on or after June
16, 2012 and before June 16, 2019 shall not exceed two percent in any
year for any tenant in occupancy on the date the major capital improve-
ment was approved] RENT ACT OF 2015, or
§ 10. Subparagraph (g) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section 27 of part Q of chapter 39 of the laws of 2019, is amended to
read as follows:
(g) There has been since July first, nineteen hundred seventy, a major
capital improvement [essential] REQUIRED for the OPERATION, preservation
[energy efficiency, functionality, or infrastructure of the entire
building, improvement of the structure including heating, windows,
plumbing and roofing but shall not be for operational costs or unneces-
sary cosmetic improvements] OR MAINTENANCE OF THE STRUCTURE. [The tempo-
rary increase based upon a major capital improvement] AN ADJUSTMENT
under this subparagraph for any order of the commissioner issued after
the effective date of the [chapter of the laws of two thousand nineteen
that amended this subparagraph] RENT ACT OF TWO THOUSAND FIFTEEN shall
be in an amount sufficient to amortize the cost of the improvements
pursuant to this subparagraph (g) over [a twelve-year] AN EIGHT-YEAR
period for buildings with thirty-five or fewer units or a [twelve and
one-half year] NINE-YEAR period for buildings with more than thirty-five
units[, and shall be removed from the legal regulated rent thirty years
from the date the increase became effective inclusive of any increases
granted by the applicable rent guidelines board. Temporary major capital
improvement increases shall be collectible prospectively on the first
day of the first month beginning sixty days from the date of mailing
notice of approval to the tenant. Such notice shall disclose the total
monthly increase in rent and the first month in which the tenant would
be required to pay the temporary increase. An approval for a temporary
major capital improvement increase shall not include retroactive
payments. The collection of any increase shall not exceed two percent in
any year from the effective date of the order granting the increase over
the rent set forth in the schedule of gross rents, with collectability
of any dollar excess above said sum to be spread forward in similar
increments and added to the rent as established or set in future years.
Upon vacancy, the landlord may add any remaining balance of the tempo-
rary major capital improvement increase to the legal regulated rent.
Notwithstanding any other provision of the law, for any renewal lease
commencing on or after June 14, 2019, the collection of any rent
increases due to any major capital improvements approved on or after
June 16, 2012 and before June 16, 2019 shall not exceed two percent in
any year for any tenant in occupancy on the date the major capital
improvement was approved], or
§ 11. Paragraph 6 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as separately amended by section
12 of part K of chapter 36 and section 28 of part Q of chapter 39 of the
laws of 2019, is amended to read as follows:
S. 7106 7
(6) provides criteria whereby the commissioner may act upon applica-
tions by owners for increases in excess of the level of fair rent
increase established under this law provided, however, that such crite-
ria shall provide (a) as to hardship applications, for a finding that
the level of fair rent increase is not sufficient to enable the owner to
maintain approximately the same average annual net income (which shall
be computed without regard to debt service, financing costs or manage-
ment fees) for the three year period ending on or within six months of
the date of an application pursuant to such criteria as compared with
annual net income, which prevailed on the average over the period nine-
teen hundred sixty-eight through nineteen hundred seventy, or for the
first three years of operation if the building was completed since nine-
teen hundred sixty-eight or for the first three fiscal years after a
transfer of title to a new owner provided the new owner can establish to
the satisfaction of the commissioner that he or she acquired title to
the building as a result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite records for the fiscal
years nineteen hundred sixty-eight through nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in title and
further provided that the new owner can provide financial data covering
a minimum of six years under his or her continuous and uninterrupted
operation of the building to meet the three year to three year compar-
ative test periods herein provided; and (b) as to completed building-
wide major capital improvements, for a finding that such improvements
are deemed depreciable under the Internal Revenue Code and that the cost
is to be amortized over [a twelve-year] AN EIGHT-YEAR period for a
building with thirty-five or fewer housing accommodations, or a [twelve
and one-half-year] NINE-YEAR period for a building with more than thir-
ty-five housing accommodations, for any determination issued by the
division of housing and community renewal after the effective date of
[the the chapter of the laws of two thousand nineteen that amended this
paragraph and shall be removed from the legal regulated rent thirty
years from the date the increase became effective inclusive of any
increases granted by the applicable rent guidelines board. Temporary
major capital improvement increases shall be collectible prospectively
on the first day of the first month beginning sixty days from the date
of mailing notice of approval to the tenant. Such notice shall disclose
the total monthly increase in rent and the first month in which the
tenant would be required to pay the temporary increase. An approval for
a temporary major capital improvement increase shall not include retro-
active payments. The collection of any increase shall not exceed two
percent in any year from the effective date of the order granting the
increase over the rent set forth in the schedule of gross rents, with
collectability of any dollar excess above said sum to be spread forward
in similar increments and added to the rent as established or set in
future years. Upon vacancy, the landlord may add any remaining balance
of the temporary major capital improvement increase to the legal regu-
lated rent. Notwithstanding any other provision of the law, for any
renewal lease commencing on or after June 14, 2019, the collection of
any rent increases due to any major capital improvements approved on or
after June 16, 2012 and before June 16, 2019 shall not exceed two
percent in any year for any tenant in occupancy on the date the major
capital improvement was approved] THE RENT ACT OF 2015 or based upon
cash purchase price exclusive of interest or service charges. [Where an
application for a temporary major capital improvement increase has been
filed, a tenant shall have sixty days from the date of mailing of a
S. 7106 8
notice of a proceeding in which to answer or reply. The state division
of housing and community renewal shall provide any responding tenant
with the reasons for the division's approval or denial of such applica-
tion.] Notwithstanding anything to the contrary contained herein, no
hardship increase granted pursuant to this paragraph shall, when added
to the annual gross rents, as determined by the commissioner, exceed the
sum of, (i) the annual operating expenses, (ii) an allowance for manage-
ment services as determined by the commissioner, (iii) actual annual
mortgage debt service (interest and amortization) on its indebtedness to
a lending institution, an insurance company, a retirement fund or
welfare fund which is operated under the supervision of the banking or
insurance laws of the state of New York or the United States, and (iv)
eight and one-half percent of that portion of the fair market value of
the property which exceeds the unpaid principal amount of the mortgage
indebtedness referred to in subparagraph (iii) of this paragraph. Fair
market value for the purposes of this paragraph shall be six times the
annual gross rent. The collection of any increase in the stabilized rent
for any apartment pursuant to this paragraph shall not exceed six
percent in any year from the effective date of the order granting the
increase over the rent set forth in the schedule of gross rents, with
collectability of any dollar excess above said sum to be spread forward
in similar increments and added to the stabilized rent as established or
set in future years;
§ 12. Intentionally omitted.
§ 13. Paragraph 3-a of subdivision d of section 6 of section 4 of
chapter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, is REPEALED.
§ 14. Intentionally omitted.
§ 15. Subdivision a of section 26-517.1 of the administrative code of
the city of New York, as amended by section 15 of part K of chapter 36
of the laws of 2019, is amended to read as follows:
a. The department of finance shall collect from the owner of each
housing accommodation registered pursuant to section 26-517 of this
chapter an annual fee in the amount of [twenty] TEN dollars per year for
each unit subject to this law, in order to defray costs incurred by the
city pursuant to subdivision c of section eight of the emergency tenant
protection act of nineteen hundred seventy-four.
§ 16. Subdivisions c and e of section 8 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, subdivision c as amended by section 1 and subdi-
vision e as amended by section 2 of part I of chapter 56 of the laws of
2020, are amended to read as follows:
c. Whenever a city having a population of one million or more has
determined the existence of an emergency pursuant to section three of
this act, the provisions of this act and the New York city rent stabili-
zation law of nineteen hundred sixty-nine shall be administered by the
state division of housing and community renewal as provided in the New
York city rent stabilization law of nineteen hundred sixty-nine, as
amended, or as otherwise provided by law. The costs incurred by the
state division of housing and community renewal in administering such
regulation shall be paid by such city. All payments for such adminis-
tration shall be transmitted to the state division of housing and commu-
nity renewal as follows: on or after April first of each year commencing
with April, nineteen hundred eighty-four, the commissioner of housing
and community renewal, in consultation with the director of the budget,
shall determine an amount necessary to defray the division's anticipated
S. 7106 9
annual cost, and one-quarter of such amount shall be paid by such city
on or before July first of such year, one-quarter of such amount on or
before October first of such year, one-quarter of such amount on or
before January first of the following year and one-quarter of such
amount on or before March thirty-first of the following year. After the
close of the fiscal year of the state, the commissioner, in consultation
with the director of the budget, shall determine the amount of all actu-
al costs incurred in such fiscal year and shall certify such amount to
such city. If such certified amount shall differ from the amount paid by
the city for such fiscal year, appropriate adjustments shall be made in
the next quarterly payment to be made by such city. In the event that
the amount thereof is not paid to the commissioner, in consultation with
the director of the budget, as herein prescribed, the commissioner, in
consultation with the director of the budget, shall certify the unpaid
amount to the comptroller, and the comptroller shall, to the extent not
otherwise prohibited by law, withhold such amount from any state aid
payable to such city. In no event shall the amount imposed on the owners
exceed [twenty] TEN dollars per unit per year.
e. The failure to pay the prescribed assessment not to exceed [twenty]
TEN dollars per unit for any housing accommodation subject to this act
or the New York city rent stabilization law of nineteen hundred sixty-
nine shall constitute a charge due and owing such city, town or village
which has imposed an annual charge for each such housing accommodation
pursuant to subdivision b of this section. Any such city, town or
village shall be authorized to provide for the enforcement of the
collection of such charges by commencing an action or proceeding for the
recovery of such fees or by the filing of a lien upon the building and
lot. Such methods for the enforcement of the collection of such charges
shall be the sole remedy for the enforcement of this section.
§ 17. Section 17 of part K of chapter 36 of the laws of 2019 enacting
the Housing Stability and Tenant Protection act of 2019, is REPEALED.
§ 18. This act shall take effect immediately; provided, however, that:
(a) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections two, eleven and fifteen of this
act shall expire on the same date as such chapter expires and shall not
affect the expiration of such chapter as provided under section 26-520
of such law;
(b) provided that the amendments to section 26-405 of the city rent
and rehabilitation law made by sections three and ten of this act shall
remain in full force and effect only as long as the public emergency
requiring the regulation and control of residential rents and evictions
continues, as provided in subdivision 3 of section 1 of the local emer-
gency housing rent control act; and
(c) effective immediately, the addition, amendment and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date are authorized and directed to be made and completed
on or before such effective date.
