NY State Senate Bill 2025-S1020A

Senate Bill S1020A

2025-2026 Legislative Session

Relates to requiring ninety days notice be provided to tenants prior to the beginning of work on a major capital improvement

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 08, 2025	print number 1020a
Apr 08, 2025	amend (t) and recommit to housing, construction and community development
Jan 08, 2025	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2025-S1020 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-405 & 26-511, NYC Ad Cd; amd §6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L
Versions Introduced in 2023-2024 Legislative Session:: S9325

2025-S1020 - Summary

Requires ninety days notice be provided to tenants prior to the beginning of work on a major capital improvement.

2025-S1020 - Sponsor Memo

                                 
BILL NUMBER: S1020

SPONSOR: JACKSON
 
TITLE OF BILL:

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 requiring notice be
provided to tenants prior to the beginning of work on a major capital
improvement

 
PURPOSE:

Requires notice be provided to tenants prior to the beginning of work on
a major capital improvement.

 
SUMMARY OF PROVISIONS:

Section 1 amends Subparagraph (g) of paragraph 1 of subdivision g of
section 26-405 of the administrative code of the city of New York to be
eligible for a temporary rent increase based upon a major capital
improvement, notice shall be required to be provided to tenants prior to

the beginning of work on such major capital improvement.

Section 2 amends Paragraph 6 of subdivision c of section 26-511 of the
administrative code of the city of New York to do the same.

Section 3 amends Paragraph 3 of subdivision d of section 6 of section 4
of chapter 17 576 of the laws of 1974, constituting the emergency tenant
protection 18 act of nineteen seventy-four, to require the same.

Section 4 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, to do the
same.

Section 5 This act shall take effect on the ninetieth day after it shall
have become a law; provided that: (a) the amendments to section 26-405
of the city rent and rehabilitation law made by section one of this act
shall remain in full force and effect only as long as the public emer-
gency 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 chapter 4 of title 26 of the administrative code of
the city of New York made by section two 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.

 
JUSTIFICATION:

Major Capital Improvements (MCIs) are building-wide improvements to
residential buildings, including systems such as boilers, windows, elec-
trical rewiring, plumbing, and roofs, in which landlords are permitted
to raise rents by 2% a year in buildings subject to rent stabilization
upon approval by the Department of Homes and Community Renewal. Current-
ly, building owners are required to notify tenants of an application for
an MCI rent increase, but they are not required to notify tenants prior
to the beginning of work on an MCI.

Mandating notice prior to commencing major capital improvements is
crucial for tenants' rights, accountability, and transparency.  Tenants
pay for MCIs through higher rents, therefore they deserve the right to
be informed before the work begins. Advance notice of MCIs will help
tenants prepare for disruptions, voice potential concerns, and ensure
that the work is necessary and reasonable.

 
LEGISLATIVE HISTORY:

2024 - S. 9325 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVEL-
OPMENT

 
STATE AND LOCAL FISCAL IMPLICATIONS:

N/A

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law; provided that: (a) the amendments to section 26-405 of the
city rent and rehabilitation 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 emer-
gency housing rent control act; and (b) the amendments to section 26-511
of chapter 4 of title 26 of the administrative code of the city of New
York made by section two 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.

2025-S1020 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1020
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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 tenant protection act of nineteen seventy-four and the emer-
   gency housing rent control law, in relation  to  requiring  notice  be
   provided  to tenants prior to the beginning of work on a major capital
   improvement
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 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] PART K OF chapter THIRTY-SIX of the laws of two thou-
 sand  nineteen  [that  amended  this subparagraph] shall be in an amount
 sufficient to amortize 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  collect-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02943-01-5
 S. 1020                             2
 
 ible  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  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.  TO BE ELIGIBLE FOR A TEMPO-
 RARY  RENT  INCREASE  BASED  UPON A MAJOR CAPITAL IMPROVEMENT UNDER THIS
 SUBPARAGRAPH, NOTICE SHALL BE REQUIRED TO BE PROVIDED TO  TENANTS  PRIOR
 TO THE BEGINNING OF WORK ON SUCH MAJOR CAPITAL IMPROVEMENT, 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
 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] SUCH
 OWNER'S 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 thir-
 ty-five  housing  accommodations,  for  any  determination issued by the
 division of housing and community renewal after the  effective  date  of
 [the  the]  PART  K  OF  chapter THIRTY-NINE of the laws of two thousand
 S. 1020                             3
 
 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
 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.  TO BE ELIGIBLE FOR A
 TEMPORARY RENT INCREASE BASED UPON A  MAJOR  CAPITAL  IMPROVEMENT  UNDER
 THIS PARAGRAPH, NOTICE SHALL BE REQUIRED TO BE PROVIDED TO TENANTS PRIOR
 TO  THE  BEGINNING  OF  WORK ON SUCH MAJOR CAPITAL IMPROVEMENT. 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.  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;
   § 3. 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:
 S. 1020                             4
 
   (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
 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. TO BE ELIGIBLE FOR A  TEMPO-
 RARY  RENT  INCREASE  BASED  UPON A MAJOR CAPITAL IMPROVEMENT UNDER THIS
 PARAGRAPH, NOTICE SHALL BE REQUIRED TO BE PROVIDED TO TENANTS  PRIOR  TO
 THE BEGINNING OF WORK ON SUCH MAJOR CAPITAL IMPROVEMENT, or
   §  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] PART K OF chapter THIRTY-SIX of the laws of two thousand  nine-
 teen [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. Tempo-
 rary major capital improvement increases shall be  collectible  prospec-
 S. 1020                             5
 
 tively 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 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, TO BE ELIGIBLE  FOR
 A  TEMPORARY  RENT INCREASE BASED UPON A MAJOR CAPITAL IMPROVEMENT UNDER
 THIS SUBPARAGRAPH, NOTICE SHALL BE REQUIRED TO BE  PROVIDED  TO  TENANTS
 PRIOR  TO  THE  BEGINNING  OF  WORK  ON  SUCH MAJOR CAPITAL IMPROVEMENT;
 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 application; or
   §  5.  This  act shall take effect on the ninetieth day after it shall
 have become a law; 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 chapter 4 of title 26 of the
 administrative code of the city of New York made by section two 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.

2025-S1020A (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-405 & 26-511, NYC Ad Cd; amd §6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L
Versions Introduced in 2023-2024 Legislative Session:: S9325

2025-S1020A (ACTIVE) - Summary

Requires ninety days notice be provided to tenants prior to the beginning of work on a major capital improvement.

2025-S1020A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1020A

SPONSOR: JACKSON
 
TITLE OF BILL:

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 requiring ninety days
notice be provided to tenants prior to the beginning of work on a major
capital improvement

 
PURPOSE:

Requires ninety days notice be provided to tenants prior to the begin-
ning of work on a major capital improvement.

 
SUMMARY OF PROVISIONS:

Section 1 amends Subparagraph (g) of paragraph 1 of subdivision g of
section 26-405 of the administrative code of the city of New York to be
eligible for a temporary rent increase based upon a major capital
improvement, ninety days notice shall be required to be provided to

tenants prior to the beginning of work on such major capital improve-
ment.

Section 2 amends Paragraph 6 of subdivision c of section 26-511 of the
administrative code of the city of New York to do the same.

Section 3 amends Paragraph 3 of subdivision d of section 6 of section 4
of chapter 17 576 of the laws of 1974, constituting the emergency tenant
protection 18 act of nineteen seventy-four, to require the same.

Section 4 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, to do the
same.

Section 5 This act shall take effect on the ninetieth day after it shall
have become a law; provided that: (a) the amendments to section 26-405
of the city rent and rehabilitation law made by section one of this act
shall remain in full force and effect only as long as the public emer-
gency 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 chapter 4 of title 26 of the administrative code of
the city of New York made by section two 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.

 
JUSTIFICATION:

Major Capital Improvements (MCIs) are building-wide improvements to
residential buildings, including systems such as boilers, windows, elec-
trical rewiring, plumbing, and roofs, in which landlords are permitted
to raise rents by 2% a year in buildings subject to rent stabilization
upon approval by the Department of Homes and Community Renewal. Current-
ly, building owners are required to notify tenants of an application for
an MCI rent increase, but they are not required to notify tenants prior
to the beginning of work on an MCI.
Mandating ninety days notice prior to commencing major capital improve-
ments is crucial for tenants' rights, accountability, and transparency.
Tenants pay for MCIs through higher rents, therefore they deserve the
right to be informed before the work begins. Advance notice of MCIs will
help tenants prepare for disruptions, voice potential concerns, and
ensure that the work is necessary and reasonable.

 
LEGISLATIVE HISTORY:

2024 - S. 9325 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVEL-
OPMENT

 
STATE AND LOCAL FISCAL IMPLICATIONS:

N/A

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law; provided that: (a) the amendments to section 26-405 of the
city rent and rehabilitation 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 emer-
gency housing rent control act; and (b) the amendments to section 26-511
of chapter 4 of title 26 of the administrative code of the city of New
York made by section two 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.

2025-S1020A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1020--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee

 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 requiring ninety days
   notice be provided to tenants prior to the  beginning  of  work  on  a
   major capital improvement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 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] PART K OF chapter THIRTY-SIX of the laws of two thou-
 sand nineteen [that amended this subparagraph] shall  be  in  an  amount
 sufficient  to  amortize  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02943-02-5
 S. 1020--A                          2
 
 board.  Temporary  major capital improvement increases shall be collect-
 ible 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 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.  TO BE ELIGIBLE FOR A TEMPO-
 RARY RENT INCREASE BASED UPON A MAJOR  CAPITAL  IMPROVEMENT  UNDER  THIS
 SUBPARAGRAPH,  NINETY  DAYS  NOTICE  SHALL BE REQUIRED TO BE PROVIDED TO
 TENANTS  PRIOR  TO  THE  BEGINNING  OF  WORK  ON  SUCH   MAJOR   CAPITAL
 IMPROVEMENT, 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
 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] SUCH
 OWNER'S 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 thir-
 ty-five  housing  accommodations,  for  any  determination issued by the
 S. 1020--A                          3
 
 division of housing and community renewal after the  effective  date  of
 [the  the]  PART  K  OF  chapter THIRTY-NINE 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
 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.  TO BE ELIGIBLE FOR A
 TEMPORARY RENT INCREASE BASED UPON A  MAJOR  CAPITAL  IMPROVEMENT  UNDER
 THIS  PARAGRAPH,  NINETY DAYS NOTICE SHALL BE REQUIRED TO BE PROVIDED TO
 TENANTS PRIOR TO THE BEGINNING OF WORK ON SUCH  MAJOR  CAPITAL  IMPROVE-
 MENT.  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 commissioner, (iii) actual
 annual mortgage debt service (interest and amortization) on its  indebt-
 edness 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 mort-
 gage 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;
   § 3. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
 576  of  the  laws of 1974, constituting the emergency tenant protection
 S. 1020--A                          4
 
 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
 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. TO BE ELIGIBLE FOR A TEMPO-
 RARY RENT INCREASE BASED UPON A MAJOR  CAPITAL  IMPROVEMENT  UNDER  THIS
 PARAGRAPH,  NINETY  DAYS  NOTICE  SHALL  BE  REQUIRED  TO BE PROVIDED TO
 TENANTS  PRIOR  TO  THE  BEGINNING  OF  WORK  ON  SUCH   MAJOR   CAPITAL
 IMPROVEMENT, or
   §  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] PART K OF chapter THIRTY-SIX of the laws of two thousand  nine-
 teen [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
 S. 1020--A                          5

 rent  thirty years from the date the increase became effective inclusive
 of any increases granted by the applicable rent guidelines board. Tempo-
 rary major capital improvement increases shall be  collectible  prospec-
 tively 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 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, TO BE ELIGIBLE FOR
 A TEMPORARY RENT INCREASE BASED UPON A MAJOR CAPITAL  IMPROVEMENT  UNDER
 THIS  SUBPARAGRAPH,  NINETY DAYS NOTICE SHALL BE REQUIRED TO BE PROVIDED
 TO TENANTS PRIOR TO THE BEGINNING OF WORK ON SUCH MAJOR CAPITAL IMPROVE-
 MENT; 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 application; or
   §  5.  This  act shall take effect on the ninetieth day after it shall
 have become a law; 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 chapter 4 of title 26 of the
 administrative code of the city of New York made by section two 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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.