NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3203
SPONSOR: Rosenthal TITLE OF BILL:
An act to amend the emergency tenant protection act of nineteen seven-
ty-four, in relation to limited-profit housing companies and other
buildings or structures which received project-based rental assistance
PURPOSE:
This bill protects those tenants who reside in Mitchell-Lama and
project-based Section 8 buildings who owners have bought out of the
Mitchell-Lama program or who no longer have Section 6 contracts with the
United States Department of Housing and Urban Development (HUD).
SUMMARY OF SPECIFIC PROVISIONS:
Section one sets forth the legislative findings and declaration of emer-
gency.
Section two amends Section 5 of section 4 of Chapter 576 of the laws of
1974 constituting the emergency tenant protection act of 1974 by adding
a new subdivision c to set rents for buildings completed after January
1, 1974 as the rents charged on January 1, 2007, as subsequently
adjusted by rent regulation laws, Furthermore, this section clarifies
that the rent setting language with a base date of January 1, 2007, will
supersede any agreement made between a tenant and landlord whether in a
lease or another agreement.
Section three makes clear that "unique or "peculiar" circumstances rent
increases authorized by the New York City rent stabilization law and the
Emergency Tenant Protection Act are not applicable to Mitchell-Lama or
project-based Section 8 buildings whether the buildings were completed
before or after January 1, 1974.
Section four provides that in a city having a population of one million
or more, that the New York City rent law may be amended by local law or
ordinance to provide for the regulation of rents and evictions and the
enforcement of such rent stabilization law with regard to housing accom-
modations made subject to such law by a declaration of emergency made
pursuant to this act.
Section five sets forth the effective date.
JUSTIFICATION:
Many limited profit housing companies are exercising their option to
buy-out of the Mitchell-Lama Program. Likewise, HUD contracts with the
owners of rental buildings for Section 8 assistance are expiring, being
terminated or not being renewed. Existing middle income tenants in Mitc-
hell-Lama and Section 8 housing are faced with eviction if they cannot
afford new market rents. Extending the ETPA to these buildings will
ensure that existing.tenants can continue to afford to live in their
current apartments. ETPA coverage will also enable building owners to
more readily be eligible for rent increases under annual ETPA guide-
lines.
This bill authorizes New York City or any city, town or village in the
counties of Westchester, Nassau and Rockland to extend the Emergency
Tenant Protection Act (ETPA) to cover rental buildings which: (1) were
owned by limited-profit housing companies which voluntarily dissolved or
which will dissolve in the future, or (2) were covered by rental assist-
ance contracts between their owners and HUD and such contracts expired
or terminated previously or will terminate at some future date.
LEGISLATIVE HISTORY:
2023-24: A.914 - Referred to Housing
2021-22: A.3676 - Referred to Housing
2019-20: A.1470 - Referred to Housing
2017-18: A.1349 - Referred to Housing
2015-16: A.344 - Referred to Housing
2013-14: A.698 - Referred to Housing
2011-12: A.2499 - Referred to Housing
2009-10: A.9230 - Reported to Rules
FISCAL IMPLICATIONS:
Most costs of administration of ETPA and rent stabilization are covered
by per unit fees charged to property owners.
EFFECTIVE DATE:
This bill shall take effect immediately and shall apply to housing
accommodations located in buildings or structures owned by housing
companies that dissolved on, before, or after such date and to housing
accommodations in buildings or structures that were covered projects and
had contracts for rental assistance that expired or were terminated on,
before, or after such date; provided that the amendments to section 5 of
the emergency tenant protection act of nineteen seventy-four made by
section two of this act shall expire on the same date as such act
expires and shall not affect the expiration of such act as provided in
Section 17 of chapter 576 of the laws of 1974.
