S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7214
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 21, 2025
                                ___________
 
 Introduced by M. of A. MITAYNES -- read once and referred to the Commit-
   tee on Housing
 
 AN  ACT  to  amend  the administrative code of the city of New York, the
   emergency tenant protection act of nineteen seventy-four and the emer-
   gency housing rent control law, in relation to the amount of  time  to
   submit supporting documentation for major capital improvements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision  g  of  section  26-405  of  the
 administrative  code  of the city of New York is amended by adding a new
 subparagraph (g-1) to read as follows:
   (G-1) NO INCREASE FOR MAJOR CAPITAL IMPROVEMENTS SHALL BE  GRANTED  TO
 ANY  LANDLORD  OR  PROPERTY  OWNER,  UNLESS AN APPLICATION INCLUDING ALL
 NECESSARY DOCUMENTATION ARE SUBMITTED WITHIN  ONE  HUNDRED  TWENTY  DAYS
 AFTER  THE COMPLETION OF THE NEW INSTALLATION OR IMPROVEMENT OR IMPROVE-
 MENTS; OR
   § 2. 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07253-01-5
              

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 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] SUCH OWNER
 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  nine-
 teen hundred seventy despite diligent efforts to obtain same from prede-
 cessors  in  title  and  further provided that the new owner can provide
 financial data covering a minimum of six years under [his or her]  THEIR
 continuous and uninterrupted operation of the building to meet the three
 year  to three year comparative 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 thirty-five or fewer housing accommodations, or a twelve
 and one-half-year period for a building with more than thirty-five hous-
 ing 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  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 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 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. 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 management services as determined by  the  commis-
 sioner,  (iii) actual annual mortgage debt service (interest and amorti-
 zation) 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
 A. 7214                             3
 
 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 prin-
 cipal 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. NO  INCREASE  FOR
 MAJOR  CAPITAL IMPROVEMENTS SHALL BE GRANTED TO ANY LANDLORD OR PROPERTY
 OWNER, UNLESS AN APPLICATION INCLUDING ALL  NECESSARY  DOCUMENTATION  IS
 SUBMITTED WITHIN ONE HUNDRED TWENTY DAYS AFTER THE COMPLETION OF THE NEW
 INSTALLATION OR IMPROVEMENT OR IMPROVEMENTS;
   §  3.  Subdivision  b  of section 4 of section 4 of chapter 576 of the
 laws of 1974, constituting the emergency tenant protection act of  nine-
 teen  seventy-four,  is  amended  by adding a new paragraph 4 to read as
 follows:
   (4) NO INCREASE FOR MAJOR CAPITAL IMPROVEMENTS SHALL BE GRANTED TO ANY
 LANDLORD OR PROPERTY OWNER, UNLESS AN APPLICATION INCLUDING  ALL  NECES-
 SARY DOCUMENTATION IS SUBMITTED WITHIN ONE HUNDRED TWENTY DAYS AFTER THE
 COMPLETION OF THE NEW INSTALLATION OR IMPROVEMENT OR IMPROVEMENTS;
   §  4. 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:
   (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
 A. 7214                             4
 
 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 proceed-
 ing  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. NO INCREASE
 FOR MAJOR CAPITAL IMPROVEMENTS SHALL BE GRANTED TO ANY LANDLORD OR PROP-
 ERTY OWNER, UNLESS AN APPLICATION INCLUDING ALL NECESSARY  DOCUMENTATION
 IS  SUBMITTED WITHIN ONE HUNDRED TWENTY DAYS AFTER THE COMPLETION OF THE
 NEW INSTALLATION OR IMPROVEMENT OR IMPROVEMENTS; or
   § 5. This act shall take effect immediately; provided that:
   a. the amendments to section 26-405 of the  city  rent  and  rehabili-
 tation  law  made  by section one 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; and
   b.  the amendments to section 26-511 of the administrative code of the
 city of New York made by section two of this act shall  not  affect  the
 expiration of such section and shall be deemed to expire therewith.