NY State Senate Bill 2025-S3812

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 30, 2025	referred to housing, construction and community development

2025-S3812 (ACTIVE) - Details

See Assembly Version of this Bill:: A5533
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 Other Legislative Sessions:: 2017-2018: A8755
2019-2020: S5317, A2159
2021-2022: S3328
2023-2024: S5659, A10006

2025-S3812 (ACTIVE) - Summary

Provides for tenant responses to applications for a major capital improvement rent increase; allows tenants to respond within one hundred twenty days from the date of mailing of a notice of a proceeding; requires the state division of housing and community renewal to provide any responding tenant with the reasons for the division's approval or denial of such application.

2025-S3812 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3812

SPONSOR: RIVERA
 
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 tenant responses to
applications for a major capital improvement rent increase

 
PURPOSE:

Requires the New York State Homes and Community Renewal to extend Major
Capital Improvement rent increase applications' tenant response period
to 120 days from the date of mailing of a notice to which to answer or
reply.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends paragraph 1 of subdivision (g) of section 26-405 of the
New York City Administrative Code (ADC) by adding a new subparagraph
(g-1), as it relates to extending the period of time for tenants to

answer Major Capital Improvement rent increase applications to 120 days
from the date of mailing of a notice of a proceeding to answer or reply.
This legislation would also require the city rent agency to provide
tenants with reasons for their approval or denial of such applications.

Section 2 amends paragraph 6 of subdivision (c) of section 26-511 of
ADC, 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, as it relates to
extending the period of time for tenants to answer Major Capital
Improvement rent increase applications to 120 days from the date of
mailing of a notice of a proceeding to answer or reply. This legislation
would also require the rent agency to provide tenants with reasons for
their approval or denial of such applications.

Section 3 amends subdivision (d) of section 6 of section 4 of chapter
576 of the Laws of 1974, constituting the Emergency Tenant Protection
Act of 1974, by adding a new paragraph (3-b) as it relates to extending
the period of time for tenants to answer Major Capital Improvement rent
increase applications to 120 days from the date of mailing of a notice
of a proceeding to answer or reply. This legislation would also require
the rent agency to provide tenants with reasons for their approval or
denial of such applications.

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 Energency Housing Rent Control Law, as sepa-
rately amended by section 25 of part Q of chapter 39, and section 14 of
part K of chapter 36 of the Laws of 2019, as it relates to extending the
period of time for tenants to answer Major Capital Improvement rent
increase applications to 120 days from the date of mailing of a notice
of a proceeding to answer or reply. This legislation would also require
the rent agency to provide tenants with reasons for their approval or
denial of such applications.

Section 5 provides the effective date.

 
JUSTIFICATION:
The New York State Division of Housing and Community Renewal (HCR)
currently allows only 60 days for tenants to respond from the date of
mailing of a notice of the landlord's Major Capital Improvement (MCI)
rent increase application for building-wide improvements. MCIs directly
impact families and households, especially given the prospect of facing
permanent rent increases in rent-controlled and rent-stabilized apart-
ments. In the Bronx, 81.8 percent of households are renters. Bronx Coun-
ty is also listed as one of the most rent-burdened communities in New
York, according to the New York University Furman Center.

This legislation would extend the time for tenants to respond to the
landlord's entire MCI application to 120 days from the date of mailing
of official notice from the HCRI. These applications include work
performed such as new windows, new boilers, new roofs, and other work
affecting the entire building. Allowing additional time so that tenants
can respond and investigate the landlord's claims in their application
for building-wide improvements would provide tenants with a more effec-
tive timetable to answer MCI rent increase applications.

 
LEGISLATIVE HISTORY:

2019-2020: S5317 Rivera/A2159 Joyner

2021-2022: S3328 Rivera/No Same As

2023-2024: S5659 Rivera/A10006 Jackson

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
90 days after being signed into law.

2025-S3812 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3812
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2025
                                ___________
 
 Introduced  by  Sen.  RIVERA -- 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  tenant  responses  to
   applications for a major capital improvement rent increase
 
   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) WHERE AN  APPLICATION  FOR  A  MAJOR  CAPITAL  IMPROVEMENT  RENT
 INCREASE  HAS  BEEN  FILED,  A TENANT SHALL HAVE ONE HUNDRED TWENTY DAYS
 FROM THE DATE OF MAILING OF A NOTICE OF A PROCEEDING IN WHICH TO  ANSWER
 OR  REPLY. THE CITY RENT AGENCY SHALL PROVIDE ANY RESPONDING TENANT WITH
 THE REASONS FOR THE CITY RENT AGENCY'S APPROVAL OR DENIAL OF SUCH APPLI-
 CATION; 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06551-01-5

 S. 3812                             2
 
 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]  THEY  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  predeces-
 sors in title and further provided that the new owner can provide finan-
 cial  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.   WHERE  AN  APPLICATION  FOR  A
 MAJOR  CAPITAL  IMPROVEMENT RENT INCREASE HAS BEEN FILED, A TENANT SHALL
 HAVE ONE HUNDRED TWENTY 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
 S. 3812                             3
 
 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 indebtedness to a lend-
 ing 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 incre-
 ments and added to the stabilized rent as established or set  in  future
 years;
   §  3.  Subdivision  d  of section 6 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 3-b to read as
 follows:
   (3-B) AN APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT RENT INCREASE HAS
 BEEN FILED, A TENANT SHALL HAVE ONE HUNDRED TWENTY 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
   § 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
 S. 3812                             4
 
 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 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; PROVIDED,
 HOWEVER, WHERE AN APPLICATION  FOR  A  MAJOR  CAPITAL  IMPROVEMENT  RENT
 INCREASE  HAS  BEEN  FILED,  A TENANT SHALL HAVE ONE HUNDRED TWENTY 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.

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Senate Bill S3812

Sponsored By

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

2025-S3812 (ACTIVE) - Details

2025-S3812 (ACTIVE) - Summary

2025-S3812 (ACTIVE) - Sponsor Memo

2025-S3812 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3812

Share this bill

Sponsored By

Gustavo Rivera

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

2025-S3812 (ACTIVE) - Details

2025-S3812 (ACTIVE) - Summary

2025-S3812 (ACTIVE) - Sponsor Memo

2025-S3812 (ACTIVE) - Bill Text download pdf

Comments