De La Rosa, Walker, Rosenthal L, Barron, Dinowitz, Ortiz, Carroll, Sepulveda, Simon, Rozic,
Seawright, Epstein, Joyner, Espinal
MLTSPNSR
Amd §10, Emerg Ten Prot Act of 1974; amd §26-511, NYC Ad Cd
Prohibits an owner from adjusting the amount of preferential rent, rent charged and paid by the tenant which is less than the legal regulated rent for the housing accommodation, upon the renewal of a lease; only allows the owner to make such adjustments upon a vacancy which is not the result of the failure of the owner to maintain a habitable residence.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6285 Revised 03/02/17
SPONSOR: Cymbrowitz TITLE OF BILL:
An act to amend the emergency tenant protection act of nineteen seven-
ty-four and the administrative code of the city of New York, in relation
to the regulation of rents
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to prohibit an owner from adjusting the
amount of preferential rent upon the renewal of a lease.
SUMMARY OF PROVISIONS:
This bill would prohibit a landlord from switching to the legal regu-
lated rent upon a lease renewal when the tenant's lease had commenced
with a preferential rent; only upon a tenant's vacancy could an owner
increase the less than legal regulated rent. In addition, such a vacancy
could not be caused by an owner or an agent of the owner's the failure
to maintain the housing accommodation in a habitable condition.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
As housing costs increase across the City of New York, the displacement
of working families and middle class residents from rent regulated
apartments has resulted in a housing crisis. The displacement of rent
regulated tenants has been aggravated by a landlord's ability to abandon
a preferential rent upon the renewal of a lease. Prior to a change in
law, a preferential rent was permanent for the duration of a tenancy and
could only be increased upon vacancy. However, as a result of amendments
to the law in 2003, landlords are now permitted to abandon a discounted,
preferential rent and impose the statutory rent upon vacancy or renewal
of a lease. Pursuant to this provision, tenants throughout New York City
have faced sudden and unanticipated rent increases upon lease renewal.
As a result, many tenants cannot pay new rental payments and have been
forced out of their rent-regulated apartments. Equally problematic is
that there is no "clean hands" requirement that a landlord conduct
him/herself responsibly when abandoning a preferential rent and imposing
the maximum rent upon vacancy. If a tenant leaves an apartment that is
uninhabitable due unsanitary conditions, lack of heat, hot water, elec-
tricity, repairs, etc., a landlord can precipitously increase rent upon
the vacancy of an apartment. As such, the law encourages bad actors to
deprive tenants of a habitable apartment in order to benefit from the
ability to abandon a preferential rent. In order to stem the displace-
ment crisis in New York City and preserve the affordable housing stock
available to working families and moderate-income residents, the rent
regulation laws are in need of reform. This proposed amendment of the
preferential rent provisions is an important step in that direction.
PRIOR LEGISLATIVE HISTORY:
Similar as A.3809-A.
2016: A.3809-A - Passed Assembly.
2015: A.3809 - Referred to Housing.
2014: A.5473 - Passed Assembly.
2013: A.5473 - Passed Assembly.
2012: A.1364-A - Advanced to third reading.
2011: A.1364 - Referred to Housing.
2010: A.465-A - Advanced to third reading.
2009: A.465 - Committed to Rules.
2008: A.10055-A - Passed Assembly.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall effect immediately.
