NY State Senate Bill 2025-S6904

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
Mar 26, 2025	referred to housing, construction and community development

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2025-S6904 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, add §§26-511.2 & 26-513.1, NYC Ad Cd; amd §§6, 10 & 9, Emerg Ten Prot Act of 1974
Versions Introduced in 2023-2024 Legislative Session:: S6352

2025-S6904 (ACTIVE) - Summary

Provides that when a housing accommodation has been vacated after continuous tenancy or occupancy of ten years or more prior to vacancy, and the owner can demonstrate restoration of the unit, the new legal regulated rent shall be the rent agreed to by the owner and first tenant after such restoration and reserved in a lease or other rental agreement; makes related provisions.

2025-S6904 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6904

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to certain housing accommodations; and to amend the emergency
tenant protection act of nineteen seventy-four, in relation to certain
hardship provisions

 
PURPOSE OR GENERAL IDEA OF BILL:

To preserve, and restore to the rental market, rent-stabilized dwelling
units vacated after extended occupancies by setting forth a procedure in
law that will require documentary submissions demonstrating subject
units to be lead-free under applicable local definitions and to have
undergone code-compliant modernization with tenant protection plans in
place. Further, to set forth a process and requirements for setting
legal regulated rents for qualifying units, commensurate with Section 8
Housing Choice Voucher rents in the same geographic areas.

 
SUMMARY OF PROVISIONS:

Adds a new paragraph 15 to subdivision c of Section 26-511 of the New
York City Administrative Code, and a new paragraph 6 to subdivision d of
Section 6 of the Emergency Tenant Protection Act, both authorizing the
adjustment of the legal regulated rents of housing accommodations having
undergone documented restoration when vacated after continuous tenancies
or occupancies of ten years or more.

Adds a new section 26-511.2 new subdivision (a-1)of tothe New York City
Administrative Code, Section 15 of the Emergency Tenant Protection Act,
which bothsetforth the documentation submission requirements for
restored units to qualify for legal regulated rent adjustment, certain
limitations such as the correction of all violations, penalties for
tenant harassment, prohibition for buildings in enforcement programs,
and the requirements for an audit process by the Division of Housing &
Community Renewal.

Adds a new section 26-513.1 of the New York City Administrative Code,
and a new subdivision (d-1) to Section 9 of the Emergency Tenant
Protection Act, which both set forth requirements for applications for
adjustment of legal regulated rents including provisions to incentivize
the housing of voucher applicants established under this act and crite-
ria for assessment of such applications and legal regulated rents estab-
lished under this act.

 
DIFFERENCE BETWEEN ORIGINAL AND ORIGINAL VERSION (IF APPLICABLE:

Amended to add additional tenant protections including an affidavit or
other evidence of no harassment, requirements for units to be recovered
through legal court process, prohibition of buildings in the NYC Housing
Preservation & Development Alternative Enforcement Program, and
protections against unlawful evictions.

Amended to add incentives for property owners to rent apartments to
housing subsidy voucher holders, and to ensure rent levels are not
greater than Section 8 payment standards so, that voucher holders can
occupy renovated units.
 
JUSTIFICATION:

Currently, there are thousands of apartments across New York that are
uninhabitable due to the failure of property owners to keep dwellings up
to code. Such upgrades for owners are cost prohibitive and have left
apartments vacated for some time. New York is in a housing crisis. With
unit scarcity and high demand for apartments, we need solutions to bring
those apartments back into a state of good repair and in conformity with
housing regulations.

With regulated housing options scarce for middle- and low-income fami-
lies, this bill would create a process that would allow for restoration
to the regulated rental market units vacated after long-term tenancies.
These units must be brought into compliance with applicable local defi-
nitions for lead-free housing accommodations and have otherwise under-
gone modernization in accordance with applicable code and construction.

This bill further requires that property owners submit to the Division
of Housing and Community Renewal certain documentation establishing
entitlement to adjust the legal regulated rent of qualifying restored
units and to allow for confirmation that any legal regulated rent estab-
lished under this act does not exceed the Section 8 Voucher Payment
Standard adopted by the local agency for the same geographic area. This
bill includes incentives for property owners to rent renovated apart-
ments to housing subsidy voucher holders and ensures rent levels are
within Section 8 voucher rent limits.

This bill provides robust tenant protections to prevent harassment and
unlawful eviction of current long-term occupants of rent-regulated hous-
ing. This bill will provide incentives to improve rent-regulated housing
stock while restoring units to the rental market and promoting the
health, safety, and welfare of current and new tenants.

 
LEGISLATIVE HISTORY:

2023/2024: S6352C/ A

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments to
chapter 4 of title 26 of the administrative code of the city of New York
made by sections one, two and three 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-S6904 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6904
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 26, 2025
                                ___________
 
 Introduced  by  Sens.  COMRIE,  FERNANDEZ, SEPULVEDA, ADDABBO, MARTINEZ,
   PARKER, PERSAUD, SCARCELLA-SPANTON -- 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,  in
   relation to certain housing accommodations; and to amend the emergency
   tenant protection act of nineteen seventy-four, in relation to certain
   hardship provisions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision c of section 26-511 of the administrative  code
 of  the city of New York is amended by adding a new paragraph 16 to read
 as follows:
   (16) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS  CHAP-
 TER  TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT TO THIS CHAP-
 TER HAS BEEN VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN  YEARS
 OR  MORE  PRIOR TO VACANCY, AND THE OWNER CAN DEMONSTRATE RESTORATION OF
 THE UNIT AS SET FORTH IN SECTION 26-511.2 OF THIS CHAPTER, THE NEW LEGAL
 REGULATED RENT SHALL BE THE RENT AGREED TO BY THE OWNER AND FIRST TENANT
 AFTER SUCH RESTORATION AND RESERVED IN A LEASE OR  OTHER  RENTAL  AGREE-
 MENT; PROVIDED THAT SUCH NEW LEGAL REGULATED RENT:  (I) SHALL NOT EXCEED
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED; AND (II)  MAY  BE
 ADJUSTED  ON  AUDIT BY THE DIVISION UNDER SECTION 26-511.2 OF THIS CHAP-
 TER, OR ON APPLICATION OF A TENANT OR OWNER UNDER  SECTION  26-513.1  OF
 THIS  CHAPTER.  THE  LEGAL  REGULATED  RENT ADJUSTMENT SET FORTH IN THIS
 PARAGRAPH SHALL BE KNOWN AS  THE  LOCAL  REGULATED  HOUSING  RESTORATION
 ADJUSTMENT.
   §  2.  The  administrative  code of the city of New York is amended by
 adding a new section 26-511.2 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05862-01-5

 S. 6904                             2
 
   § 26-511.2 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  A. THE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL, THE "DIVISION"  SHALL  ESTAB-
 LISH  A  NOTIFICATION  PROCEDURE AND DOCUMENTATION SUBMISSION GUIDELINES
 FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.    DOCUMENTATION
 TO  QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT SHALL
 BE LIMITED TO:
   (1) XRF TEST RESULTS OR OTHER DOCUMENTATION DEMONSTRATING A  LEAD-FREE
 HOUSING ACCOMMODATION UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION PLANS OR SIMILAR SUBMISSIONS TO THE
 LOCAL BUILDING DEPARTMENT IN CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES OR CERTIFICATIONS;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7)  EVIDENCE  OF  RENTING TO A HOUSING SUBSIDY VOUCHER HOLDER, OR THE
 SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY  A  LOCAL  PUBLIC  HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED;
   (8) EVIDENCE OF RENTING  TO  A  HOUSING  SUBSIDY  VOUCHER  HOLDER,  OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SECTION, A FORM
 TO  BE  PROMULGATED  BY  THE  DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION ADJUSTMENT WAS VOLUNTARY AND  NOT  THE  RESULT  OF  UNLAWFUL  OWNER
 HARASSMENT.  IN  CONSIDERING THE SUFFICIENCY OF ALTERNATE DOCUMENTATION,
 AND NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION,  VACATUR
 SHALL  BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC  COMMUNICATIONS,  RECORDINGS,  OR OTHER EVIDENCE OF VOLUNTARY
 VACATUR, OR (III) THE OWNER DEMONSTRATES THE PREVIOUS  TENANT  DIED  AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B.  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT SHALL NOT BE
 PERMITTED:
   (1) FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD  AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2)  FOR  UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH PERIOD AFTER
 DETERMINATION BY THE DIVISION THAT THE OWNER  HAS  ENGAGED  IN  UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT;
   (3)  FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND DEVEL-
 OPMENT'S ALTERNATIVE ENFORCEMENT PROGRAM; OR
   (4) AFTER AN UNLAWFUL EVICTION.
   C. THE DIVISION SHALL ESTABLISH AN AUDIT PROCESS TO REVIEW A  PERCENT-
 AGE,  AS  ESTABLISHED  BY  THE  DIVISION, OF HOUSING ACCOMMODATIONS THAT
 REGISTER ADJUSTED LEGAL REGULATED RENTS UNDER THE LOCAL REGULATED  HOUS-
 ING  RESTORATION  ADJUSTMENT.   THE DIVISION'S ESTABLISHED AUDIT PROCESS
 SHALL BE SUBJECT TO THE FOLLOWING REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET FORTH IN SUBDIVISION A OF THIS SECTION HAS BEEN SUBMITTED; AND  (II)
 UNLESS RENTED TO A HOUSING SUBSIDY VOUCHER HOLDER, CONFIRMATION THAT THE
 UNIT'S  AGREED RENT DOES NOT EXCEED THE SECTION 8 VOUCHER PAYMENT STAND-
 ARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE
 AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME  THE
 LEASE  WAS  EXECUTED.   SUCH AUDIT SHALL BE INITIATED WITHIN ONE YEAR OF
 S. 6904                             3
 
 THE FILING OF AN ANNUAL APARTMENT REGISTRATION INDICATING AN  ADJUSTMENT
 TO  THE  LEGAL REGULATED RENT UNDER THE LOCAL REGULATED HOUSING RESTORA-
 TION ADJUSTMENT; AND
   (2)  IF  AN  AUDIT UNDER THIS SUBDIVISION DETERMINES THAT (I) AN OWNER
 HAS FAILED TO SUBMIT DOCUMENTATION SET FORTH IN SUBDIVISION  A  OF  THIS
 SECTION  AND  THE  OWNER  THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION
 AFTER SIXTY DAYS' WRITTEN NOTICE FROM THE DIVISION, OR  (II)  THE  LOCAL
 HOUSING  RESTORATION  ADJUSTMENT  EXCEEDS  THE SECTION 8 VOUCHER PAYMENT
 STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME
 SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME
 THE LEASE WAS EXECUTED, THE DIVISION SHALL SET THE SUBJECT UNIT'S  LEGAL
 REGULATED RENT AT AN AMOUNT EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION
 8  VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR
 A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT AT THE TIME THE LEASE WAS EXECUTED, EXCEPT THAT THE  LEGAL  REGU-
 LATED  RENTS  FOR  UNITS  SUBJECT  TO  HOUSING SUBSIDY VOUCHERS SHALL BE
 ESTABLISHED AT THE CONTRACT RENT AMOUNT APPROVED BY THE AGENCY  ADMINIS-
 TERING THE VOUCHER.
   (3)  ANY  REQUIRED  REFUNDS  SHALL  BE MADE IN ACCORDANCE WITH SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS  OR
 THAT  ARE  IN  COMMUNITIES  OF NEED, THE DIVISION SHALL ESTABLISH INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING PROVIDERS WHO RENT TO HOUSING SUBSIDY  VOUCHER  HOLDERS  LOCATED  IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E.  ACCESS  TO  THE DOCUMENTATION SUBMITTED AS PART OF THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME  LAWS
 GOVERNING  ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH THE
 DIVISION.
   § 3. The administrative code of the city of New  York  is  amended  by
 adding a new section 26-513.1 to read as follows:
   §  26-513.1  APPLICATION  FOR  ADJUSTMENT  OF  LOCAL REGULATED HOUSING
 RESTORATION ADJUSTMENT. A. THE TENANT OF A  HOUSING  ACCOMMODATION  THAT
 WAS  VACANT  ON,  OR  BECAME  VACANT  AFTER, JUNE 14, 2019, AND HAS BEEN
 SUBJECT TO THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT, MAY  FILE
 WITH  THE  COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL WITHIN 120 DAYS
 AFTER NOTICE HAS BEEN RECEIVED UNDER SUBDIVISION C OF  THIS  SECTION  AN
 APPLICATION  FOR  THE  ADJUSTMENT  OF THE RENT FOR SUCH HOUSING ACCOMMO-
 DATION. SUCH APPLICATIONS SHALL BE SUBJECT TO THE FOLLOWING:
   (1) IN THE APPLICATION, THE TENANT MUST ALLEGE THAT  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE SECTION 8 VOUCHER
 PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT  OF
 THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT
 THE TIME THE LEASE WAS EXECUTED.
   (2)  IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER SHALL ONLY CONSIDER WHETHER THE SUBJECT  RENT  EXCEEDS  THE
 SECTION  8  VOUCHER  PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED.
   (3)  THE  OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER THIS SECTION SHALL BE GIVEN AN OPPORTUNITY  TO  SUBMIT  A  WRITTEN
 ANSWER TO ANY APPLICATION.
   (4)  WHEN  THE  LOCAL  REGULATED  HOUSING  RESTORATION ADJUSTMENT RENT
 AMOUNT IS DETERMINED TO EXCEED THE SECTION 8  VOUCHER  PAYMENT  STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 S. 6904                             4
 
 LOCATED  WITHIN  THE  SAME  ZIP  CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED, THE COMMISSIONER OF HOUSING  AND  COMMUNITY  RENEWAL
 SHALL  ORDER THAT THE LEGAL REGULATED RENT FOR THE SUBJECT UNIT SHALL BE
 EQUAL  TO SEVENTY-FIVE PERCENT OF THE SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE  WAS  EXECUTED;  EXCEPT  THAT  THE LEGAL REGULATED RENTS FOR UNITS
 SUBJECT TO HOUSING SUBSIDY VOUCHERS SHALL BE EQUAL TO THE CONTRACT  RENT
 AMOUNT  APPROVED BY THE LOCAL HOUSING AUTHORITY THAT ISSUES THE VOUCHER.
 ANY REQUIRED REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR AS  A  CREDIT
 AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   B.  NOTWITHSTANDING  SUBDIVISION  A OF THIS SECTION, PROVIDED THAT THE
 OWNER HAS SUBMITTED TO THE DIVISION  DOCUMENTATION  IN  ACCORDANCE  WITH
 SUBDIVISION  A  OF  SECTION 26-511.2 OF THIS CHAPTER, THE DIVISION SHALL
 ONLY DETERMINE WHETHER THE TENANCY  IS  SUBJECT  TO  A  HOUSING  SUBSIDY
 VOUCHER  AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT AFTER
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT EXCEEDS THE SECTION 8
 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR  A
 UNIT  OF  THE  SAME  SIZE  LOCATED  WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT AT THE TIME THE LEASE WAS EXECUTED.  ANY DOCUMENTATION  DEFICIEN-
 CIES  SHALL  BE  RESOLVED THROUGH THE AUDIT PROCESS SET FORTH IN SECTION
 26-511.2 OF THIS CHAPTER.
   C. IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE  LEGAL
 RENT  WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING BY CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE  TENANT  HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING  ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL THAT THE LOCAL REGULATED  HOUSING  RESTORATION
 ADJUSTMENT  WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL REGU-
 LATED RENT, A DESCRIPTION OF WORK COMPLETED, THE  BUILDING  ADDRESS  AND
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED, AND SUCH TENANT'S
 RIGHT TO FILE AN APPLICATION CHALLENGING THE NEW LEGAL REGULATED RENT OF
 SUCH HOUSING ACCOMMODATION.
   § 4. Paragraph 5 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 chapter 102 of the laws of
 1984, is amended and a new paragraph 6 is added to read as follows:
   (5) as an alternative to the hardship application provided under para-
 graph four of this subdivision, owners of buildings acquired by the same
 owner or a related entity owned by the same principals three years prior
 to the date of application may apply to the division  for  increases  in
 excess  of the level of applicable guideline increases established under
 this law based on a finding by  the  commissioner  that  such  guideline
 increases  are  not sufficient to enable the owner to maintain an annual
 gross rent income for such building which exceeds the  annual  operating
 expenses  of  such  building  by a sum equal to at least five percent of
 such gross rent. For the purposes of this paragraph, operating  expenses
 shall  consist  of  the actual, reasonable, costs of fuel, labor, utili-
 ties, taxes, other than  income  or  corporate  franchise  taxes,  fees,
 permits,  necessary  contracted services and non-capital repairs, insur-
 ance, parts and supplies, management fees and other administrative costs
 and mortgage interest. For the  purposes  of  this  paragraph,  mortgage
 interest  shall  be  deemed  to  mean  interest  on a bona fide mortgage
 S. 6904                             5
 
 including an allocable portion of charges related thereto.  Criteria  to
 be considered in determining a bona fide mortgage other than an institu-
 tional  mortgage  shall  include; condition of the property, location of
 the  property,  the existing mortgage market at the time the mortgage is
 placed, the term of the mortgage, the amortization rate,  the  principal
 amount  of  the mortgage, security and other terms and conditions of the
 mortgage. The commissioner shall set a rental value for any  unit  occu-
 pied  by the owner or a person related to the owner or unoccupied at the
 owner's choice for more than one month at the last regulated  rent  plus
 the minimum number of guidelines increases or, if no such regulated rent
 existed  or  is  known,  the commissioner shall impute a rent consistent
 with other rents in the building. The amount of hardship increase  shall
 be  such  as may be required to maintain the annual gross rent income as
 provided by this paragraph. The division  shall  not  grant  a  hardship
 application  under  this paragraph or paragraph four of this subdivision
 for a period of three years subsequent to granting a  hardship  applica-
 tion  under  the  provisions  of  this  paragraph. The collection of any
 increase in the rent for any  housing  accommodation  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
 rent  as  established  or  set  in future years. No application shall be
 approved unless the owner's equity in such building exceeds five percent
 of: (i) the arms length purchase price of the property; (ii) the cost of
 any capital improvements  for  which  the  owner  has  not  collected  a
 surcharge; (iii) any repayment of principal of any mortgage or loan used
 to  finance the purchase of the property or any capital improvements for
 which the owner has not collected a surcharge; and (iv) any increase  in
 the  equalized  assessed value of the property which occurred subsequent
 to the first valuation of the property after purchase by the owner.  For
 the purposes of this paragraph, owner's equity shall mean the sum of (i)
 the purchase price of the property less the principal of any mortgage or
 loan  used to finance the purchase of the property, (ii) the cost of any
 capital improvement for which the owner has not  collected  a  surcharge
 less the principal of any mortgage or loan used to finance said improve-
 ment,  (iii) any repayment of the principal of any mortgage or loan used
 to finance the purchase of the property or any capital  improvement  for
 which  the owner has not collected a surcharge, and (iv) any increase in
 the equalized assessed value of the property which  occurred  subsequent
 to  the  first valuation of the property after purchase by the owner[.];
 OR
   (6) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER
 TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT  TO  THIS  CHAPTER
 HAS  BEEN  VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN YEARS OR
 MORE PRIOR TO VACANCY, AND THE OWNER CAN DEMONSTRATE RESTORATION OF  THE
 UNIT  AS  SET FORTH IN SUBDIVISION (A-1) OF SECTION TEN OF THIS CHAPTER,
 THE NEW LEGAL REGULATED RENT SHALL BE THE RENT AGREED TO  BY  THE  OWNER
 AND FIRST TENANT AFTER SUCH RESTORATION AND RESERVED IN A LEASE OR OTHER
 RENTAL  AGREEMENT;  PROVIDED  THAT  SUCH NEW LEGAL REGULATED RENT:   (I)
 SHALL NOT EXCEED THE SECTION 8 VOUCHER PAYMENT  STANDARD  ADOPTED  BY  A
 LOCAL  PUBLIC  HOUSING  AGENCY  FOR  A UNIT OF THE SAME SIZE AND LOCATED
 WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME  THE  LEASE  WAS
 EXECUTED; AND (II) MAY BE ADJUSTED ON AUDIT BY THE DIVISION UNDER SUBDI-
 VISION  (A-1)  OF  SECTION  TEN  OF THIS CHAPTER, OR ON APPLICATION OF A
 TENANT OR OWNER UNDER SUBDIVISION D-1 OF SECTION NINE OF  THIS  CHAPTER.
 S. 6904                             6
 
 THE LEGAL REGULATED RENT ADJUSTMENT SET FORTH IN THIS PARAGRAPH SHALL BE
 KNOWN AS THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.
   §  5.  Section  10  of  section  4 of chapter 576 of the laws of 1974,
 constituting the emergency tenant protection act  of  nineteen  seventy-
 four is amended by adding a new subdivision (a-1) to read as follows:
   (A-1)  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH A
 NOTIFICATION PROCEDURE AND DOCUMENTATION SUBMISSION GUIDELINES  FOR  THE
 LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT.  A. DOCUMENTATION TO
 QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT SHALL  BE
 LIMITED TO:
   (1)  XRF TEST RESULTS OR OTHER DOCUMENTATION DEMONSTRATING A LEAD-FREE
 HOUSING ACCOMMODATION UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION PLANS OR SIMILAR SUBMISSIONS TO THE
 LOCAL BUILDING DEPARTMENT IN CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES OR CERTIFICATIONS;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7) EVIDENCE OF RENTING TO A HOUSING SUBSIDY VOUCHER  HOLDER,  OR  THE
 SECTION  8  VOUCHER  PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED;
   (8)  EVIDENCE  OF  RENTING  TO  A  HOUSING  SUBSIDY VOUCHER HOLDER, OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION,  A
 FORM TO BE PROMULGATED BY THE DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION  ADJUSTMENT  WAS  VOLUNTARY  AND  NOT  THE RESULT OF UNLAWFUL OWNER
 HARASSMENT. IN CONSIDERING THE SUFFICIENCY OF  ALTERNATE  DOCUMENTATION,
 AND  NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION, VACATUR
 SHALL BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT  WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC COMMUNICATIONS, RECORDINGS, OR OTHER  EVIDENCE  OF  VOLUNTARY
 VACATUR,  OR  (III)  THE OWNER DEMONSTRATES THE PREVIOUS TENANT DIED AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B. THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT  SHALL  NOT  BE
 PERMITTED:
   (1)  FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2) FOR UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH  PERIOD  AFTER
 DETERMINATION  BY  THE  DIVISION  THAT THE OWNER HAS ENGAGED IN UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT;
   (3) FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND  DEVEL-
 OPMENT'S ALTERNATIVE ENFORCEMENT PROGRAM; OR
   (4) AFTER AN UNLAWFUL EVICTION.
   C.  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH AN
 AUDIT PROCESS TO REVIEW A PERCENTAGE, AS ESTABLISHED BY THE DIVISION, OF
 HOUSING ACCOMMODATIONS THAT  REGISTER  ADJUSTED  LEGAL  REGULATED  RENTS
 UNDER  THE  LOCAL  REGULATED HOUSING RESTORATION ADJUSTMENT.   THE DIVI-
 SION'S ESTABLISHED AUDIT PROCESS  SHALL  BE  SUBJECT  TO  THE  FOLLOWING
 REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET  FORTH  IN  PARAGRAPH  A OF THIS SUBDIVISION HAS BEEN SUBMITTED; AND
 S. 6904                             7
 
 (II) UNLESS RENTED TO A HOUSING  SUBSIDY  VOUCHER  HOLDER,  CONFIRMATION
 THAT  THE  UNITS  AGREED UPON RENT AS RESERVED IN A LEASE AGREEMENT DOES
 NOT EXCEED THE SECTION 8 VOUCHER PAYMENT STANDARD  ADOPTED  BY  A  LOCAL
 PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE
 SAME  ZIP  CODE  THAT  WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED.
 SUCH AUDIT SHALL BE INITIATED WITHIN ONE YEAR OF THE FILING OF AN ANNUAL
 APARTMENT REGISTRATION INDICATING AN ADJUSTMENT TO THE  LEGAL  REGULATED
 RENT UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT; AND
   (2)  IF  AN AUDIT UNDER THIS SUBDIVISION DETERMINES THAT: (I) AN OWNER
 HAS FAILED TO SUBMIT DOCUMENTATION SET FORTH IN SUBDIVISION  A  OF  THIS
 SECTION  AND  THE  OWNER  THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION
 AFTER SIXTY DAYS' WRITTEN NOTICE FROM THE DIVISION; OR  (II)  THE  LOCAL
 HOUSING  RESTORATION  ADJUSTMENT  EXCEEDS  THE SECTION 8 VOUCHER PAYMENT
 STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME
 SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME
 THE LEASE WAS EXECUTED, THE DIVISION SHALL SET THE SUBJECT UNIT'S  LEGAL
 REGULATED RENT AT AN AMOUNT EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION
 8  VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR
 A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT AT THE TIME THE LEASE WAS EXECUTED, PROVIDED, HOWEVER,  THAT  THE
 LEGAL  REGULATED  RENTS  FOR  UNITS  SUBJECT TO HOUSING SUBSIDY VOUCHERS
 SHALL BE ESTABLISHED AT THE CONTRACT RENT AMOUNT APPROVED BY THE  AGENCY
 ADMINISTERING THE VOUCHER.
   (3)  ANY  REQUIRED  REFUNDS  SHALL  BE MADE IN ACCORDANCE WITH SECTION
 26-513.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS  OR
 THAT  ARE  IN  COMMUNITIES  OF NEED, THE DIVISION SHALL ESTABLISH INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING PROVIDERS WHO RENT TO HOUSING SUBSIDY  VOUCHER  HOLDERS  LOCATED  IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E.  ACCESS  TO  THE DOCUMENTATION SUBMITTED AS PART OF THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME  LAWS
 GOVERNING  ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH THE
 DIVISION.
   § 6. Section 9 of section 4 of  chapter  576  of  the  laws  of  1974,
 constituting  the  emergency  tenant protection act of nineteen seventy-
 four is amended by adding a new subdivision d-1 to read as follows:
   D-1. (1) THE TENANT OF A HOUSING ACCOMMODATION THAT WAS VACANT ON,  OR
 BECAME  VACANT  AFTER,  JUNE 14, 2019, AND HAS BEEN SUBJECT TO THE LOCAL
 REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE WITH THE COMMISSIONER
 WITHIN 120 DAYS AFTER NOTICE HAS BEEN RECEIVED UNDER PARAGRAPH THREE  OF
 THIS  SUBDIVISION AN APPLICATION FOR THE ADJUSTMENT OF THE RENT FOR SUCH
 HOUSING ACCOMMODATION.   SUCH  APPLICATIONS  SHALL  BE  SUBJECT  TO  THE
 FOLLOWING:
   (I)  IN  THE  APPLICATION, THE TENANT MUST ALLEGE THAT THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE SECTION 8  VOUCHER
 PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF
 THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT
 THE TIME THE LEASE WAS EXECUTED;
   (II) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ONLY CONSIDER WHETH-
 ER THE SUBJECT RENT EXCEEDS  THE  SECTION  8  VOUCHER  PAYMENT  STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED  WITHIN  THE  SAME  ZIP  CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED;
 S. 6904                             8
 
   (III) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER THIS SECTION SHALL BE GIVEN AN OPPORTUNITY  TO  SUBMIT  A  WRITTEN
 ANSWER TO ANY APPLICATION; AND
   (IV)  WHEN  THE  LOCAL  REGULATED  HOUSING RESTORATION ADJUSTMENT RENT
 AMOUNT IS DETERMINED TO EXCEED THE SECTION 8  VOUCHER  PAYMENT  STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED  WITHIN  THE  SAME  ZIP  CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED, THE COMMISSIONER OF HOUSING  AND  COMMUNITY  RENEWAL
 SHALL  ORDER THAT THE LEGAL REGULATED RENT FOR THE SUBJECT UNIT SHALL BE
 EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION 8 VOUCHER PAYMENT  STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED  WITHIN  THE  SAME  ZIP  CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED; PROVIDED, HOWEVER, THAT THE  LEGAL  REGULATED  RENTS
 FOR  UNITS  SUBJECT  TO  HOUSING  SUBSIDY VOUCHERS SHALL BE EQUAL TO THE
 CONTRACT RENT AMOUNTS APPROVED BY THE LOCAL HOUSING AGENCY ADMINISTERING
 THE VOUCHER.  ANY REQUIRED REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR
 AS A CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   (2) NOTWITHSTANDING PARAGRAPH A OF THIS SUBDIVISION, PROVIDED THAT THE
 OWNER HAS SUBMITTED TO THE DIVISION  DOCUMENTATION  IN  ACCORDANCE  WITH
 SUBDIVISION  (A-1)  OF  SECTION  TEN OF THIS CHAPTER, THE DIVISION SHALL
 ONLY DETERMINE WHETHER THE TENANCY  IS  SUBJECT  TO  A  HOUSING  SUBSIDY
 VOUCHER  AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT AFTER
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT EXCEEDS THE SECTION 8
 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR  A
 UNIT  OF  THE  SAME  SIZE  LOCATED  WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT AT THE TIME THE LEASE WAS EXECUTED.  ANY DOCUMENTATION  DEFICIEN-
 CIES  SHALL  BE RESOLVED THROUGH THE AUDIT PROCESS SET FORTH IN SUBDIVI-
 SION (A-1) OF SECTION TEN OF THIS CHAPTER.
   (3) IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION  ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING  BY  CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE TENANT HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF  HOUS-
 ING  AND  COMMUNITY RENEWAL THAT THE LOCAL REGULATED HOUSING RESTORATION
 ADJUSTMENT WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL  REGU-
 LATED  RENT,  A  DESCRIPTION OF WORK COMPLETED, THE BUILDING ADDRESS AND
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED, AND SUCH TENANT'S
 RIGHT  TO  FILE AN APPLICATION FOR ADJUSTMENT OF THE NEW LEGAL REGULATED
 RENT OF SUCH HOUSING ACCOMMODATION.
   § 7. This act shall take effect immediately;  and  provided  that  the
 amendments  to  chapter  4 of title 26 of the administrative code of the
 city of New York made by sections one, two and three 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 S6904

Sponsored By

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

co-Sponsors

2025-S6904 (ACTIVE) - Details

2025-S6904 (ACTIVE) - Summary

2025-S6904 (ACTIVE) - Sponsor Memo

2025-S6904 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6904

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Sponsored By

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

co-Sponsors

2025-S6904 (ACTIVE) - Details

2025-S6904 (ACTIVE) - Summary

2025-S6904 (ACTIVE) - Sponsor Memo

2025-S6904 (ACTIVE) - Bill Text download pdf

Comments