NY State Senate Bill 2023-S7403

Senate Bill S7403

2023-2024 Legislative Session

Extends the answer time when a major capital improvement rent increase has been filed to ninety days

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Current Bill Status - In Senate Committee Rules 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 07, 2024	committed to rules
May 15, 2024	advanced to third reading
May 14, 2024	2nd report cal.
May 13, 2024	1st report cal.1018
Jan 03, 2024	referred to housing, construction and community development
May 23, 2023	referred to housing, construction and community development

Votes

- May 13, 2024 - Housing, Construction And Community Development Committee Vote
  S7403
  
  8
  
  Aye
  
  2
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: May 13, 2024
      
      aye (8)
      
      Brisport
      
      Cleare
      
      Jackson
      
      Kavanagh
      
      May
      
      Myrie
      
      Rivera
      
      Salazar
      
      nay (2)
      
      Borrello
      
      Helming
      
      aye wr (1)
      
      Martins

co-Sponsors

2023-S7403 (ACTIVE) - Details

See Assembly Version of this Bill:: A3818
Current Committee:: Senate Rules
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-511.1, 26-405.1, 26-511 & 26-405, NYC Ad Cd; amd §§10-b & 6, Emerg Ten Prot Act of 1974; amd §§8-a & 4, Emerg Hous Rent Cont L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A2448
2013-2014: A764, A8459
2015-2016: A859
2017-2018: A4376
2019-2020: A956
2021-2022: A1881

2023-S7403 (ACTIVE) - Summary

Extends the answer time when a major capital improvement rent increase has been filed to ninety days.

2023-S7403 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7403

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, the
emergency housing rent control law and the emergency tenant protection
act of nineteen hundred seventy-four, in relation to extending the time
a tenant shall have to answer when an application for a major capital
improvement rent increase has been filed

 
PURPOSE::

This bill extends the amount of time from 60 days to 90 days that
tenants have to respond in proceedings regarding major capital improve-
ment rent increases before the division of housing and community renewal
and provides that applications for a major capital improvement rent
increase must include all copies of valid permits pertaining to the
major capital improvement work with such applications.

 
SUMMARY OF PROVISIONS::

Sections one through four and section six of the bill amend parallel
provisions of the state's various laws regulating rent to extend the
answer time in proceedings before the division of housing and community
renewal from 60 days to 90 days.

Section one amends paragraph 10 of subdivision a of section 26-511.1 of
the administrative code of the city of New York for that purpose.

Section two amends paragraph 10 of subdivision a of section 26-405.1 of
the administrative code of the city of New York for that purpose.

Section three amends paragraph 10 of subdivision (a) of section 10-b of
section 4 of chapter 576 of the laws of 1974, constituting the emergency
tenant protection act of nineteen seventy-four, for that purpose.

Section four amends paragraph (j) of subdivision 1 of section 8-a of
chapter 274 of the laws of 1946, constituting the emergency housing rent
control law, for that purpose.

Section six amends 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, for that purpose.

Section five and section seven of the bill amend parallel provisions of
the state's various laws regulating rent to extend the answer time in
proceedings before the division of housing and community renewal from 60
days to 90 days and provide that applications for a major capital
improvement rent increase must include all copies of valid permits
pertaining to the major capital improvement work with such application.

Section five amends paragraph 6 of subdivision c of section 26-511 of
the administrative code of the city of New York for that pUrpose.

Section seven amends subparagraph 7 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, for
that purpose.
Section eight and section nine of the bill amend parallel provisions of
the state's various laws regulating rent to provide that applications
for a major capital improvement rent increase must include all copies of
valid permits pertaining to the major capital improvement work with such
application.

Section eight amends subparagraph (g) of paragraph 1 of subdivision g of
section 26-405 of the administrative code of the city of New York for
that purpose.

Section nine amends 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, for that purpose.

Section ten sets forth the effective date.

 
JUSTIFICATION:

Current law only provides 60 days for tenants to file relevant comments
after a landlord has applied for a Major Capital Improvement (MCI) rent
increase. Tenants are only provided additional time if an extension is
specifically granted by DHCR's Office of Rent Administration.

In order for a tenant to make an appropriate and informed response to
the MCI application, the tenant would need to examine the landlord's
entire application file. To do this, the tenant must first complete a
FOIL request form. If there are building code violations, the tenant
must file the appropriate complaints, furnish proof of previous
complaints made to the landlord, and even hire engineers, architects,
attorneys and/or accountants to verify that a job was not completed or
that the improvement was not appropriately managed.

As it stands, there is already an extraordinary burden on the tenants to
answer the MCI application. This proposal would extend the existing
public comment period to 90 days to allow tenants a minimally sufficient
amount of time to submit an effective response to a landlord's MCI rent
increase request.

Additionally, by requiring landlords to furnish proof to DHCR that all
necessary permits associated with performing MCI work have been filed,
the provisions of this bill would prevent claims for MCI rent increases
that cannot be corroborated through permit records - a form of documen-
tation that serves as proof of work.

 
LEGISLATIVE HISTORY::  Provisions substantially similar to those of
this bill were previously included in Part B of S2980B of 2023.

Senate

2023: S2980B (Kavanagh) - Referred to Housing; reported to Floor.

2022: S7213A (Kavanagh) - Referred to Housing

2021: S7213A (Kavanagh) - Referred to Housing

Assembly

2022: A1881 (Rosenthal L) - Referred to Housing
2021: A1881 (Rosenthal L) - Referred to Housing

2020: A0956 (Rosenthal L) - Referred to Housing

2019: A0956 (Rosenthal L) - Referred to Housing

2018: A4376 (Rosenthal L) - Referred to Housing

2017: A4376 (Rosenthal L) - Referred to Housing

2016: A0859 (Rosenthal L) - Referred to Housing

2015: A0859 (Rosenthal L) - Referred to Housing

2014: A0859 (Rosenthal L) - Referred to Housing

2013: A0764 (Gibson) - Referred to Housing; enacting clause stricken

2012: A2448 (Gibson) - Referred to Housing

2011: A2448 (Gibson) - Referred to Housing

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::

Minimal.

 
EFFECTIVE DATE::

This act shall take effect immediately; provided that the amendments to
sections 26-405 and 26-405.1 of the city rent and rehabilitation law
made by sections two and eight 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 emergency housing rent control
act; provided, further, that the amendments to sections 26-511 and
26-511.1 of the administrative code of the city of New York, made by
sections one and five 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.

2023-S7403 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7403
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 23, 2023
                                ___________
 
 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 administrative code of the city of New York, the
   emergency housing rent control law and the emergency tenant protection
   act of nineteen hundred seventy-four, in  relation  to  extending  the
   time  a  tenant  shall  have to answer when an application for a major
   capital improvement rent increase has been filed
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  10 of subdivision a of section 26-511.1 of the
 administrative code of the city of New York, as added by  section  4  of
 part K of chapter 36 of the laws of 2019, is amended to read as follows:
   (10)  provide,  that where an application for a major capital improve-
 ment rent increase has been filed, a tenant shall  have  [sixty]  NINETY
 days  from  the  date of mailing of a notice of a proceeding in which to
 answer or reply;
   § 2. Paragraph 10 of subdivision a of section 26-405.1 of the adminis-
 trative code of the city of New York, as added by section 5 of part K of
 chapter 36 of the laws of 2019, is amended to read as follows:
   (10) provide, that where an application for a major  capital  improve-
 ment  rent  increase  has been filed, a tenant shall have [sixty] NINETY
 days from the date of mailing of a notice of a proceeding  in  which  to
 answer or reply;
   §  3.  Paragraph 10 of subdivision (a) of section 10-b of section 4 of
 chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
 protection act of nineteen seventy-four, as added by section 6 of part K
 of chapter 36 of the laws of 2019, is amended to read as follows:
   10. provide, that where an application for a major capital improvement
 rent  increase  has  been filed, a tenant shall have [sixty] NINETY days

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08813-03-3
 S. 7403                             2

 
 from the date of mailing of a notice of a proceeding in which to  answer
 or reply;
   §  4.  Paragraph (j) of subdivision 1 of section 8-a of chapter 274 of
 the laws of 1946, constituting the emergency housing rent  control  law,
 as  added  by  section 7 of part K of chapter 36 of the laws of 2019, is
 amended to read as follows:
   (j) provide, that where an application for a major capital improvement
 rent increase has been filed, a tenant shall have  [sixty]  NINETY  days
 from  the date of mailing of a notice of a proceeding in which to answer
 or reply;
   § 5. Paragraph 6 of subdivision c of section 26-511 of the administra-
 tive 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:
   (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 period for a building with thir-
 ty-five or fewer housing accommodations, or a twelve  and  one-half-year
 period for a building with more than thirty-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 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
 S. 7403                             3
 
 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 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] NINETY 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 application.   THE
 DIVISION  OF  HOUSING AND COMMUNITY RENEWAL SHALL REQUIRE THE SUBMISSION
 OF COPIES OF ALL PERMITS PERTAINING TO MAJOR  CAPITAL  IMPROVEMENT  WORK
 WITH  ANY APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT INCREASE. ANY
 APPLICATION  SUBMITTED  WITH  FRAUDULENT  PERMITS  OR  WITHOUT  REQUIRED
 PERMITS  SHALL  BE  DENIED.  Notwithstanding  anything  to  the contrary
 contained herein, no hardship increase granted pursuant  to  this  para-
 graph  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 management 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;
   § 6. Paragraph 3-a of subdivision d of section 6 of section 4 of chap-
 ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
 protection act of  nineteen seventy-four, as added by section 13 of part
 K of chapter 36 of the laws of 2019, is amended to read as follows:
   (3-a)  an  application  for  a  temporary  major  capital  improvement
 increase has been filed, a tenant shall have [sixty]  NINETY  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 application; or
   §  7. Subparagraph 7 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, as separately
 amended by section 25 of part Q of chapter 39 and section 14 of  part  K
 of chapter 36 of the laws of 2019, is amended to read as follows:
 S. 7403                             4
 
   (7)  there has been since March first, nineteen hundred fifty, 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 operational costs or unnecessary cosmetic improvements;
 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
 paragraph the cost of such improvement shall be amortized over a twelve-
 year  period  for  buildings with thirty-five or fewer units or a twelve
 and one-half 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  improve-
 ment  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; provided, however, where an application for a
 temporary major capital improvement increase has been  filed,  a  tenant
 shall have [sixty] NINETY 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 application;
 PROVIDED, HOWEVER, NO APPLICATION FOR A MAJOR CAPITAL  IMPROVEMENT  RENT
 INCREASE  SHALL  BE  APPROVED  BY  THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL UNLESS THE OWNER OF THE PROPERTY HAS FILED ALL COPIES OF PERMITS
 PERTAINING TO THE MAJOR CAPITOL IMPROVEMENT WORK WITH SUCH  APPLICATION.
 ANY  APPLICATION  SUBMITTED  WITH FRAUDULENT PERMITS OR WITHOUT REQUIRED
 PERMITS SHALL BE DENIED; or
   § 8.  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 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 operational costs or unnecessary cosmetic  improvements.  The
 temporary  increase  based  upon  a major capital improvement under this
 subparagraph for any order of the commissioner issued after  the  effec-
 tive  date  of  the  chapter  of  the laws of two thousand nineteen that
 amended this subparagraph shall be in an amount sufficient  to  amortize
 S. 7403                             5
 
 the  cost  of  the improvements pursuant to this subparagraph (g) over a
 twelve-year period for buildings with thirty-five or fewer  units  or  a
 twelve and one-half 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[,];  PROVIDED,  HOWEVER, NO APPLICATION FOR A
 MAJOR CAPITAL IMPROVEMENT RENT INCREASE SHALL BE APPROVED BY  THE  DIVI-
 SION  OF  HOUSING AND COMMUNITY RENEWAL UNLESS THE OWNER OF THE PROPERTY
 HAS FILED ALL COPIES OF PERMITS PERTAINING TO THE MAJOR CAPITAL IMPROVE-
 MENT  WORK WITH SUCH APPLICATION. ANY APPLICATION SUBMITTED WITH FRAUDU-
 LENT PERMITS OR WITHOUT REQUIRED PERMITS SHALL BE DENIED; or
   § 9.  Paragraph 3 of subdivision d of section 6 of section 4 of  chap-
 ter  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 effi-
 ciency,  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.  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 period for a building with thirty-five or
 fewer housing accommodations, or a twelve  and  one-half  period  for  a
 building  with more than thirty-five housing accommodations 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, 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 para-
 graph. Temporary major capital improvement increases shall be  collecta-
 ble  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
 S. 7403                             6
 
 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, the collection of any rent increases for any renewal lease commenc-
 ing 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  improvement  was approved[,]; PROVIDED, HOWEVER, NO
 APPLICATION FOR A MAJOR  CAPITAL  IMPROVEMENT  RENT  INCREASE  SHALL  BE
 APPROVED  BY  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL UNLESS THE
 OWNER OF THE PROPERTY HAS FILED ALL COPIES OF PERMITS PERTAINING TO  THE
 MAJOR  CAPITAL  IMPROVEMENT WORK WITH SUCH APPLICATION.  ANY APPLICATION
 SUBMITTED  WITH FRAUDULENT PERMITS OR WITHOUT REQUIRED PERMITS  SHALL BE
 DENIED; or
   § 10.   This act shall take  effect  immediately;  provided  that  the
 amendments to sections 26-405 and 26-405.1 of the city rent and rehabil-
 itation  law  made by sections two and eight 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 emergency housing
 rent control act; provided, further, that  the  amendments  to  sections
 26-511  and 26-511.1 of the administrative code of the city of New York,
 made by sections one and five 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.

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Senate Bill S7403

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Sponsored By

Brian Kavanagh