NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2286
SPONSOR: Rosenthal TITLE OF BILL:
An act to repeal paragraphs 3 and 4 of subdivision a of section 26-405
of the administrative code of the city of New York, relating to the
establishment of maximum base rents using the maximum gross building
rental formula
PURPOSE:
To eliminate the requirement that owners submit an operation and mainte-
nance expense report biannually to DHCR to obtain a maximum base rental
increase on a rent controlled apartment.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill repeals sections (3) and (4) of subsection a of
section 26-405 of the administrative code of the City of New York, which
requires the division of housing and community renewal to establish
maximum rents using a maximum gross building rental formula, and
requires building owners to provide the data necessary for DHCR to apply
the formula.
Section 2 of the bill sets forth the effective date.
JUSTIFICATION:
The Housing Stability and Tenant Protection Act of 2019 changed the
manner in which maximum rent increases are determined for rent
controlled apartments. Previously, the State Division of Housing and
Community Renewal (DHCR) would calculate maximum base rent increases
based on operation and maintenance expense data submitted by building
owners. The HSTPA superseded this method and set increases at the aver-
age of the five most recent annual rent increases for one-year renewals
approved by the Rent Guidelines Board for rent stabilized apartments.
This bill eliminates two provisions of the New York City Administrative
Code related to the method that HSTPA superseded.
LEGISLATIVE HISTORY:
2023-24: A.8854 -Referred to Housing; S.6900 - Advanced to Third Reading
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2286
2025-2026 Regular Sessions
IN ASSEMBLY
January 16, 2025
___________
Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Housing
AN ACT to repeal paragraphs 3 and 4 of subdivision a of section 26-405
of the administrative code of the city of New York, relating to the
establishment of maximum base rents using the maximum gross building
rental formula
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs 3 and 4 of subdivision a of section 26-405 of
2 the administrative code of the city of New York are REPEALED.
3 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05701-01-5
