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A01585 Summary:

A01585 Floor Votes:

A01585 Memo:

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



 
BILL NUMBER: A1585
 
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 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
 
 
 
PURPOSE OR GENERAL IDEA OF BILL: This bill repeals Provisions of New
York State and New York City statutes 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 $2,000 or more.
 
 
SUMMARY OF SPECIFIC PROVISIONS:
 
Section 1 of this bill sets forth legislative findings and declaration
of emergency
 
Section 2 Would repeal paragraph (n) of subdivision 2 of section 2 of
chapter 274 of the laws of 1946, constituting the emergency rent control
law
 
Section 3 of this bill would 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 1974
 

Section 4 would repeal subparagraph (k) of paragraph 2 of subdivision e
of section 25-403 of the administrative code of the city of New York
 
Section 5 would repeal section 26-504.2 of the administrative code of
the city of New York
 
Section 6 and Section 7 also subject accommodations to regulation under
such laws which were deregulated upon vacancy on or after January 1,
2007 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 Rock-
land on or after January 1, 2007.
 
Section 8 and 9 repeal vacancy decontrol provisions of the New York City
Administrative Code and the Emergency Tenant Protection Act that relate
to preferential rents, respectively.
 
Section 10 provides for an immediate 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 regu-
lation 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.
 
 
PRIOR LEGISLATIVE HISTORY:
2011-2012 - 2430A Similar to: 2010: A2005- Passed the Assembly 2008:
A7416A-Passed Assembly/S5149B Referred to Housing 2007: A7416A - Passed
Assembly
2006:  A6916 - Housing 2005: A6916 - Third reading calendar 2004: A10845
-Passed Assembly 2002: A1101- Passed Assembly
 
 
FISCAL IMPLICATIONS: Some costs may be incurred by DHCR.
 
 
EFFECTIVE DATE: Immediately.

A01585 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1585
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced  by  M.  of  A.  ROSENTHAL,  SILVER, BRENNAN, LENTOL, WRIGHT,
          CAMARA, BROOK-KRASNY, BOYLAND,  KELLNER,  SCHIMEL,  MAISEL,  KAVANAGH,
          GOTTFRIED,   DINOWITZ,  MILLMAN,  LAVINE,  COLTON,  O'DONNELL,  TITUS,
          FARRELL, ORTIZ, BENEDETTO, HOOPER, JACOBS, ROBINSON, ZEBROWSKI, GLICK,

          CASTRO, GIBSON, STEVENSON -- Multi-Sponsored by -- M.  of  A.  BARRON,
          COOK,  CYMBROWITZ,  HEASTIE,  JAFFEE,  MARKEY,  PEOPLES-STOKES, PERRY,
          PRETLOW, RIVERA, SCARBOROUGH, WEISENBERG -- 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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02595-01-3
        A. 1585                             2
 
     1  result of the present state of the law in relation to  the  deregulation
     2  of  housing  accommodations  upon  vacancy.  The situation has permitted
     3  speculative and profiteering practices and has brought about the loss of
     4  vital and irreplaceable affordable housing for working persons and fami-
     5  lies.
     6    The legislature therefore declares that in order to prevent uncertain-
     7  ty,  potential  hardship  and  dislocation  of tenants living in housing
     8  accommodations subject to  government  regulations  as  to  rentals  and

     9  continued occupancy as well as those not subject to such regulation, the
    10  provisions of this act are necessary to protect the public health, safe-
    11  ty  and  general  welfare.  The necessity in the public interest for the
    12  provisions hereinafter enacted is hereby declared as a matter of  legis-
    13  lative determination.
    14    § 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
    15  laws  of  1946,  constituting the emergency housing rent control law, is
    16  REPEALED.
    17    § 3. Paragraph 13 of subdivision a of section 5 of section 4 of  chap-
    18  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
    19  protection act of nineteen seventy-four, is REPEALED.
    20    § 4. Subparagraph (k) of paragraph  2  of  subdivision  e  of  section
    21  26-403 of the administrative code of the city of New York is REPEALED.

    22    §  5.  Section  26-504.2 of the administrative code of the city of New
    23  York is REPEALED.
    24    § 6. Any housing accommodations that on or after January 1, 2007  were
    25  excluded from coverage from the emergency tenant protection act of nine-
    26  teen  seventy-four, the emergency housing rent control law or the admin-
    27  istrative code of the city of New York pursuant to the provisions of law
    28  repealed by sections two, three, four and five  of  this  act  shall  be
    29  subject  to  the  provisions  of  such  act, law or administrative code,
    30  respectively.  Notwithstanding the provisions of  any  lease  or  rental
    31  agreement,  the  legal regulated rent or maximum collectible rent of any
    32  housing accommodation excluded from regulation on or  after  January  1,
    33  2007  by  reason of the provisions repealed by sections two, three, four

    34  and five of this act shall  be  the  legal  regulated  rent  or  maximum
    35  collectible  rent applicable to such accommodation on December 31, 2006,
    36  subject to further adjustment in accordance with  applicable  provisions
    37  of law.
    38    §  7.  Any  housing  accommodations that prior to January 1, 2007 were
    39  excluded from coverage from the emergency tenant protection act of nine-
    40  teen seventy-four, the emergency housing rent control law or the  admin-
    41  istrative code of the city of New York pursuant to the provisions of law
    42  repealed  by  sections two, three, four, and five of this act, and where
    43  such housing accommodations were located outside the city  of  New  York
    44  and  were  rented  to a tenant on or after January 1, 2007 for less than
    45  $3,500 per month or were located within the city of New  York  and  were
    46  rented  to  a tenant on or after January 1, 2007 for less than $5,000.00

    47  per month, shall be subject to the provisions of such act, law or admin-
    48  istrative code, respectively.   Notwithstanding the  provisions  of  any
    49  lease  or rental agreement, the legal regulated rent or maximum collect-
    50  ible rent of any housing accommodation excluded from regulation prior to
    51  January 1, 2007 by reason of the provisions repealed  by  sections  two,
    52  three, four and five of this act and made subject to regulation shall be
    53  the  actual rent applicable to such accommodations on January 1, 2007 or
    54  the first rent applicable to such accommodation after January  1,  2007,
    55  subject  to  further adjustment in accordance with applicable provisions
    56  of law.
        A. 1585                             3
 
     1    § 8. Paragraph 14 of subdivision c of section 26-511 of  the  adminis-
     2  trative code of the city of New York, as amended by section 14 of part B

     3  of chapter 97 of the laws of 2011, is amended to read as follows:
     4    (14) provides that where the amount of rent charged to and paid by the
     5  tenant  is  less  than the legal regulated rent for the housing accommo-
     6  dation, the amount of rent for such housing accommodation which  may  be
     7  charged  upon  renewal or upon vacancy thereof may, at the option of the
     8  owner, be based upon such previously established legal  regulated  rent,
     9  as  adjusted  by the most recent applicable guidelines increases and any
    10  other increases authorized by law. [Where, subsequent to  vacancy,  such
    11  legal  regulated  rent, as adjusted by the most recent applicable guide-
    12  lines increases and any other increases authorized by law is  two  thou-
    13  sand  dollars  or more per month or, for any housing accommodation which

    14  is or becomes vacant on or after the effective date of the rent  act  of
    15  2011, is two thousand five hundred dollars or more per month, such hous-
    16  ing  accommodation  shall  be  excluded  from the provisions of this law
    17  pursuant to section 26-504.2 of this chapter.]
    18    § 9. Subdivision a-2 of section 10 of section 4 of chapter 576 of  the
    19  laws  of  1974 constituting the emergency tenant protection act of nine-
    20  teen seventy-four, as amended by section 13 of part B of chapter  97  of
    21  the laws of 2011, is amended to read as follows:
    22    (a-2)  Provides  that  where the amount of rent charged to and paid by
    23  the tenant is less than the legal regulated rent for the housing  accom-
    24  modation, the amount of rent for such housing accommodation which may be
    25  charged  upon  renewal or upon vacancy thereof may, at the option of the

    26  owner, be based upon such previously established legal  regulated  rent,
    27  as adjusted by the most recent applicable guidelines increases and other
    28  increases  authorized  by law. [Where, subsequent to vacancy, such legal
    29  regulated rent, as adjusted by the  most  recent  applicable  guidelines
    30  increases  and  any  other  increases  authorized by law is two thousand
    31  dollars or more per month or, for any housing accommodation which is  or
    32  becomes  vacant  on or after the effective date of the rent act of 2011,
    33  is two thousand five hundred dollars or more  per  month,  such  housing
    34  accommodation shall be excluded from the provisions of this act pursuant
    35  to paragraph thirteen of subdivision a of section five of this act.]

    36    § 10. This act shall take effect immediately; provided, however, that:
    37    (a)  the  amendments to section 26-511 of chapter 4 of title 26 of the
    38  administrative code of the city of New York made  by  section  eight  of
    39  this act shall expire on the same date as such law expires and shall not
    40  affect  the  expiration  of such law as provided under section 26-520 of
    41  such law; and
    42    (b) the amendments to subdivision a-2 of section 10 of  section  4  of
    43  the  emergency  tenant  protection  act of nineteen seventy-four made by
    44  section nine of this act shall expire on  the  same  date  as  such  act
    45  expires  and  shall not affect the expiration of such act as provided in
    46  section 17 of chapter 576 of the laws of 1974.