New York State Assembly

 
•  Summary 
 
•  Actions 
 
•  Committee Votes 
 
•  Floor Votes 
 
•  Memo 
 
•  Text 
 
•  LFIN 
 
•  Chamber Video/Transcript 

A00433 Summary:

A00433 Floor Votes:

A00433 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A433
 
SPONSOR: Rosenthal (MS)

 
TITLE OF BILL:
 
An act to amend the administrative code of the city of New York and the
emergency tenant protection act of nineteen seventy-four, in relation to
making conforming technical changes; and to repeal paragraph 13 of
subdivision a of section 5 of section 4 of chapter 576 of the laws of
1974 constituting the emergency tenant protection act of nineteen seven-
ty-four, paragraph (n) of subdivision 2 of section 2 of chapter 274 of
the laws of 1946, constituting the emergency housing rent control law,
and section 26-504.2 and subparagraph (k) of paragraph 2 of subdivision
e of section 26-403 of the administrative code of the city of New York,
relating to vacancy decontrol
 
 
PURPOSE:
 
This bill repeals Provisions of New York State and New York City stat-
utes that remove apartments from rent stabilization or rent control when
such apartments are vacated and could be rented under such statutes for
monthly rents of $2,700 or more.
 
 
SUMMARY OF SPECIFIC PROVISIONS:
 
Section one sets forth legislative findings and declaration of emergen-
cy.
 
Section two repeals paragraph (n) of subdivision 2 of section 2 of chap-
ter 274 of the laws of 1946, constituting the emergency rent control
law.
 
Section three repeals paragraph 13 of subdivision a of section 5 of
section 4 of chapter 576 of the laws of 1974, constituting the emergency
tenant protection act of 1974.
 
Section four repeals subparagraph (k) of paragraph 2 of subdivision e of
section 25-403 of the administrative code of the city of New York.
 
Section five repeals section 26-504.2 of the administrative code of the
city of New York.
 
Section under such laws which were deregulated upon vacancy on or after
January 1, 2013 or which were deregulated upon vacancy prior to January
1, 2007 and which rented for less than $5,000 per month in New York City
or less than $3,500 per month in the counties of Westchester, Nassau,
and Rockland on or after January 1, 2013.
 
Section eight and Section nine repeal vacancy decontrol provisions of
the New York City Administrative Code and the Emergency Tenant
Protection Act that relate to preferential rents, respectively.
 
Section ten sets forth the effective date.
 
 
JUSTIFICATION:
 
The shortage of affordable housing in New York City, in the suburban
counties of Westchester, Nassau, and Rockland and in many other areas of
the state is an acute crisis. The systems of rent regulation presently
existing are the single most effective program of state and local
governments to preserve the supply of affordable housing. These programs
have been seriously eroded by the vacancy decontrol laws.
 
Available data and several studies suggest that over 300,000 rent stabi-
lized apartments have been removed from regulation in New York City and
the counties of Westchester, Nassau, and Rockland under vacancy decon-
trol. The pace at which vacancy decontrol removes affordable housing
units from regulation is accelerating with each passing year.
 
Vacancy decontrol is an incentive for owners of rental housing to with-
hold services and to use forms of harassment to induce regulated tenants
to vacate their rental units. In some instances, costs of renovation
have been inflated or even falsified in order to drive apartment rents
to the $2,000 threshold for vacancy decontrol. In other cases no reno-
vations at all are done to vacant apartments and such apartments are
treated as deregulated regardless of the legal rent. Such abuses are
made possible by the existence of the vacancy decontrol laws. Repeal of
vacancy decontrol is essential to restore the integrity of the rent
regulation systems and to protect the state's precious supply of afford-
able housing.
 
 
LEGISLATIVE HISTORY:
 
2015-16: A.1865-B - Advanced to Third Reading Calendar
2013-14: A.1585 - Passed Assembly; S.1167 - Referred to Housing
2011-12: A.2430-A - Passed Assembly; S.1193-A - Referred to Housing
2009-10: A.2005 - Passed Assembly; S.2237-A - Referred to Housing
 
 
FISCAL IMPLICATIONS:
 
Some costs may be incurred by HCR
 
 
EFFECTIVE DATE:
This bill shall take effect immediately.

A00433 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           433
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2017
                                       ___________
 
        Introduced by M. of A. ROSENTHAL, LENTOL, DINOWITZ, GOTTFRIED, KAVANAGH,
          COLTON,  TITUS,  FARRELL,  ORTIZ,  BENEDETTO,  HOOPER,  GLICK, MOSLEY,
          ZEBROWSKI, WEPRIN, DAVILA, PICHARDO, BICHOTTE, MAYER, ABINANTI, SIMON,
          JOYNER, QUART, ROZIC, BLAKE, SEAWRIGHT, WALKER, RICHARDSON  --  Multi-
          Sponsored  by  --  M.  of A. COOK, CYMBROWITZ, JAFFEE, PEOPLES-STOKES,
          PERRY, PRETLOW, RIVERA, SEPULVEDA -- read once  and  referred  to  the
          Committee on Housing
 
        AN  ACT to amend the administrative code of the city of New York and the
          emergency tenant protection act of nineteen seventy-four, in  relation
          to  making conforming technical changes; and to repeal paragraph 13 of
          subdivision a of section 5 of section 4 of chapter 576 of the laws  of
          1974  constituting  the  emergency  tenant  protection act of nineteen
          seventy-four, paragraph (n) of subdivision 2 of section 2  of  chapter
          274  of  the  laws  of  1946,  constituting the emergency housing rent
          control law, and section 26-504.2 and subparagraph (k) of paragraph  2
          of  subdivision  e of section 26-403 of the administrative code of the
          city of New York, relating to vacancy decontrol
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Legislative  findings  and  declaration of emergency. The
     2  legislature hereby finds and declares that the serious public  emergency
     3  which  led  to the enactment of the existing laws regulating residential
     4  rents and evictions continues to exist;  that  such  laws  would  better
     5  serve  the public interest if certain changes were made thereto, includ-
     6  ing the continued regulation  of  certain  housing  accommodations  that
     7  become  vacant  and  the  reinstatement of regulation of certain housing
     8  accommodations that have been deregulated upon vacancy.
     9    The legislature further  recognizes  that  severe  disruption  of  the
    10  rental  housing market has occurred and threatens to be exacerbated as a
    11  result of the present state of the law in relation to  the  deregulation
    12  of  housing  accommodations  upon  vacancy.  The situation has permitted
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07086-01-7
        A. 433                              2
 
     1  speculative and profiteering practices and has brought about the loss of
     2  vital and irreplaceable affordable housing for working persons and fami-
     3  lies.
     4    The legislature therefore declares that in order to prevent uncertain-
     5  ty,  potential  hardship  and  dislocation  of tenants living in housing
     6  accommodations subject to  government  regulations  as  to  rentals  and
     7  continued occupancy as well as those not subject to such regulation, the
     8  provisions of this act are necessary to protect the public health, safe-
     9  ty  and  general  welfare.  The necessity in the public interest for the
    10  provisions hereinafter enacted is hereby declared as a matter of  legis-
    11  lative determination.
    12    § 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
    13  laws  of  1946,  constituting the emergency housing rent control law, is
    14  REPEALED.
    15    § 3. Paragraph 13 of subdivision a of section 5 of section 4 of  chap-
    16  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
    17  protection act of nineteen seventy-four, is REPEALED.
    18    § 4. Subparagraph (k) of paragraph  2  of  subdivision  e  of  section
    19  26-403 of the administrative code of the city of New York is REPEALED.
    20    §  5.  Section  26-504.2 of the administrative code of the city of New
    21  York is REPEALED.
    22    § 6. Any housing accommodations that prior to the  effective  date  of
    23  this   act  were  excluded  from  coverage  from  the  emergency  tenant
    24  protection act of nineteen  seventy-four,  the  emergency  housing  rent
    25  control  law or the administrative code of the city of New York pursuant
    26  to the provisions of law repealed by sections two, three, four and  five
    27  of  this act, and where such housing accommodations were located outside
    28  the city of New York and were rented to a tenant between January 1, 2013
    29  and the effective date of this act for less  than  $3,500.00  per  month
    30  regardless  of  any subsequent payment of a higher monthly rent, or were
    31  located within the city of New York and were rented to a tenant  between
    32  January  1,  2013  and  the  effective  date  of  this act for less than
    33  $5,000.00 per month, regardless of any subsequent payment  of  a  higher
    34  monthly  rent,  shall  be  subject to the provisions of such act, law or
    35  administrative code, respectively.   Notwithstanding the  provisions  of
    36  any  lease  or  rental  agreement,  the  legal regulated rent or maximum
    37  collectible rent of any housing accommodation excluded  from  regulation
    38  prior  to  the  effective  date  of this act by reason of the provisions
    39  repealed by sections two, three, four and five  of  this  act  and  made
    40  subject  to  regulation  shall  be  the  actual rent paid by a tenant on
    41  December 31, 2014 or, if no rent was  paid  for  such  accommodation  on
    42  December 31, 2014, the most recent actual rent paid by a tenant for such
    43  accommodation  prior to December 31, 2014, subject to further adjustment
    44  in accordance with applicable provisions of law.
    45    § 7. Paragraph 14 of subdivision c of section 26-511 of  the  adminis-
    46  trative code of the city of New York, as amended by section 12 of part A
    47  of chapter 20 of the laws of 2015, is amended to read as follows:
    48    (14) provides that where the amount of rent charged to and paid by the
    49  tenant  is  less  than the legal regulated rent for the housing accommo-
    50  dation, the amount of rent for such housing accommodation which  may  be
    51  charged  upon renewal or upon vacancy thereof, may, at the option of the
    52  owner, be based upon such previously established legal  regulated  rent,
    53  as  adjusted  by the most recent applicable guidelines increases and any
    54  other increases authorized by law. [Such housing accommodation shall  be
    55  excluded  from  the provisions of this code pursuant to section 26-504.2
    56  of this chapter when, subsequent to vacancy: (i)  such  legal  regulated
        A. 433                              3

     1  rent prior to vacancy is two thousand five hundred dollars per month, or
     2  more,  for any housing accommodation that is or becomes vacant after the
     3  effective date of the rent act of 2011 but prior to the  effective  date
     4  of  the  rent act of 2015 or (ii) such legal regulated rent is two thou-
     5  sand seven hundred dollars per month or more, provided, however that  on
     6  January  1,  2016,  and annually thereafter, the maximum legal regulated
     7  rent for this deregulation threshold  shall  be  adjusted  by  the  same
     8  percentage as the most recent one year renewal adjustment as adjusted by
     9  the  relevant  rent guidelines board, for any housing accommodation that
    10  is or becomes vacant on or after the rent act of 2015.]
    11    § 8. Subdivision (a-2) of section 10 of section 4 of  chapter  576  of
    12  the  laws  of  1974  constituting the emergency tenant protection act of
    13  nineteen seventy-four, as amended by section 11 of part A of chapter  20
    14  of the laws of 2015, is amended to read as follows:
    15    (a-2)  Provides  that  where the amount of rent charged to and paid by
    16  the tenant is less than the legal regulated rent for the housing  accom-
    17  modation, the amount of rent for such housing accommodation which may be
    18  charged  upon renewal or upon vacancy thereof, may, at the option of the
    19  owner, be based upon such previously established legal  regulated  rent,
    20  as adjusted by the most recent applicable guidelines increases and other
    21  increases  authorized  by  law.  [Such  housing  accommodation  shall be
    22  excluded from the provisions of this act pursuant to paragraph  thirteen
    23  of subdivision a of section five of this act when subsequent to vacancy:
    24  (i)  such  legal regulated rent is two thousand five hundred dollars per
    25  month, or more, for any  housing  accommodation  that  is,  or  becomes,
    26  vacant after the effective date of the rent act of 2011 but prior to the
    27  effective date of the rent act of 2015 or (ii) such legal regulated rent
    28  is  two thousand seven hundred dollars per month or more for any housing
    29  accommodation that is or becomes vacant on or  after  the  rent  act  of
    30  2015;  starting on January 1, 2016, and annually thereafter, the maximum
    31  legal regulated rent for this  deregulation  threshold,  shall  also  be
    32  increased  by  the  same  percent  as  the  most recent one year renewal
    33  adjustment, adopted by the applicable rent guidelines board pursuant  to
    34  the rent stabilization law.]
    35    § 9. This act shall take effect immediately; provided, however, that:
    36    (a)  the  amendments to section 26-511 of chapter 4 of title 26 of the
    37  administrative code of the city of New York made  by  section  seven  of
    38  this act shall expire on the same date as such law expires and shall not
    39  affect  the  expiration  of such law as provided under section 26-520 of
    40  such law; and
    41    (b) the amendments to subdivision (a-2) of section 10 of section 4  of
    42  the  emergency  tenant  protection  act of nineteen seventy-four made by
    43  section eight of this act shall expire on the  same  date  as  such  act
    44  expires  and  shall not affect the expiration of such act as provided in
    45  section 17 of chapter 576 of the laws of 1974.