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A05178 Summary:

A05178 Floor Votes:

A05178 Memo:

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



 
BILL NUMBER: A5178
 
SPONSOR: Wright

 
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 limiting rent increase after vacancy of a housing
accommodation
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
The purpose of this bill is to expand rent stabilized tenant protections
by reducing the percentage by which rent may be increased upon vacancy.
 
 
SUMMARY OF SPECIFIC PROVISIONS:
 
This bill would amend the administrative code of the city of New York

and the Emergency Tenant Protection Act of 1974 to reduce the vacancy
increase a landlord may collect from twenty percent to seven and one-
half percent.
 
 
JUSTIFICATION:
 
With the vacancy rate in New York City and the surrounding communities
consistently less than five percent, accessing affordable housing
continues to be a challenge for low- and middle income families. This
bill would limit the amount a landlord may increase the rent for a rent
stabilized apartment upon vacancy.
 
This bill would have two beneficial effects for tenants. The first and
most direct is that it would limit the amount a landlord can increase
rents. This would help to stabilize the housing market by reducing the
large rental increases landlords are currently allowed to make upon
vacancy of a rent stabilized unit. The seven and one-half percent
increase would be consistent with annual rent increases allowed by the
New York City Rent Guidelines Board, and represents the approximate

increase that would occur in a two-year period. The bill would also
discourage tenant harassment. By not rewarding landlords for tenant
turnover at an exorbitant rate, landlords are less likely to engage in
activities to drive tenants out of their units.
 
 
PRIOR LEGISLATIVE HISTORY:
 
New legislation.   
EFFECTIVE DATE:
This act shall take effect immediately provided that the amendments to
the administrative code of the City of New York and the Emergency Tenant
Protection Act shall not affect the expiration of such laws.

A05178 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5178
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 20, 2013
                                       ___________
 
        Introduced by M. of A. WRIGHT -- 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 limiting rent increase after vacancy of a housing accommodation
 

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 5-a of subdivision c of  section  26-511  of  the
     2  administrative  code of the city of New York, as amended by section 7 of
     3  part B of chapter 97 of the laws of 2011, is amended to read as follows:
     4    (5-a) provides that, notwithstanding any provision  of  this  chapter,
     5  the  legal  regulated  rent for any vacancy lease entered into after the
     6  effective date of this paragraph shall be  as  hereinafter  provided  in
     7  this  paragraph.  The  previous  legal  regulated  rent for such housing
     8  accommodation shall be increased by the following: (i)  if  the  vacancy
     9  lease is for a term of two years, [twenty] seven and one-half percent of
    10  the previous legal regulated rent; or (ii) if the vacancy lease is for a

    11  term  of  one  year  the  increase  shall be [twenty] seven and one-half
    12  percent of the previous legal regulated rent less an amount equal to the
    13  difference between (a) the two year renewal lease guideline  promulgated
    14  by  the guidelines board of the city of New York applied to the previous
    15  legal regulated rent and  (b)  the  one  year  renewal  lease  guideline
    16  promulgated  by  the guidelines board of the city of New York applied to
    17  the previous legal regulated rent. In addition, if the  legal  regulated
    18  rent  was  not increased with respect to such housing accommodation by a
    19  permanent vacancy allowance within eight years prior to a vacancy  lease
    20  executed  on  or  after  the effective date of this paragraph, the legal
    21  regulated rent may be further increased by an amount equal to the  prod-
    22  uct  resulting  from  multiplying  such previous legal regulated rent by

    23  six-tenths of one percent and further multiplying  the  amount  of  rent
    24  increase  resulting  therefrom by the greater of (A) the number of years
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09196-01-3
        A. 5178                             2
 
     1  since the imposition of the last permanent vacancy allowance, or (B)  if
     2  the  rent  was  not increased by a permanent vacancy allowance since the
     3  housing accommodation became subject to  this  chapter,  the  number  of
     4  years  that such housing accommodation has been subject to this chapter.
     5  Provided that if the previous legal regulated rent was less  than  three
     6  hundred dollars the total increase shall be as calculated above plus one

     7  hundred dollars per month. Provided, further, that if the previous legal
     8  regulated  rent was at least three hundred dollars and no more than five
     9  hundred dollars in no event shall the total increase  pursuant  to  this
    10  paragraph  be  less  than  one  hundred dollars per month. Such increase
    11  shall be in lieu of any allowance authorized for the  one  or  two  year
    12  renewal  component  thereof,  but  shall  be  in  addition  to any other
    13  increases authorized pursuant to this chapter  including  an  adjustment
    14  based upon a major capital improvement, or a substantial modification or
    15  increase of dwelling space or services, or installation of new equipment
    16  or  improvements  or  new furniture or furnishings provided in or to the
    17  housing accommodation pursuant to this section. The increase  authorized
    18  in  this  paragraph  may  not  be  implemented more than one time in any

    19  calendar year, notwithstanding the number of vacancy leases entered into
    20  in such year.
    21    § 2. Subdivision (a-1) of section 10 of section 4 of  chapter  576  of
    22  the  laws  of  1974, constituting the emergency tenant protection act of
    23  nineteen seventy-four, as amended by section 8 of part B of  chapter  97
    24  of the laws of 2011, is amended to read as follows:
    25    (a-1)  provides  that,  notwithstanding any provision of this act, the
    26  legal regulated rent for any vacancy lease entered into after the effec-
    27  tive date of this subdivision shall be as hereinafter set  forth.    The
    28  previous  legal  regulated  rent for such housing accommodation shall be
    29  increased by the following: (i) if the vacancy lease is for  a  term  of
    30  two  years,  [twenty]  seven  and one-half percent of the previous legal

    31  regulated rent; or (ii) if the vacancy lease is for a term of  one  year
    32  the  increase shall be [twenty] seven and one-half percent of the previ-
    33  ous legal regulated rent less an amount equal to the difference  between
    34  (a)  the  two year renewal lease guideline promulgated by the guidelines
    35  board of the county  in  which  the  housing  accommodation  is  located
    36  applied  to  the  previous  legal  regulated  rent  and (b) the one year
    37  renewal lease guideline promulgated by the guidelines board of the coun-
    38  ty in which the housing accommodation is located applied to the previous
    39  legal regulated rent. In addition, if the legal regulated rent  was  not
    40  increased  with  respect  to  such  housing accommodation by a permanent
    41  vacancy allowance within eight years prior to a vacancy  lease  executed
    42  on  or after the effective date of this subdivision, the legal regulated

    43  rent may be further increased by an amount equal to the product  result-
    44  ing from multiplying such previous legal regulated rent by six-tenths of
    45  one  percent and further multiplying the amount of rent increase result-
    46  ing therefrom by the greater of (A) the number of years since the  impo-
    47  sition  of  the last permanent vacancy allowance, or (B) if the rent was
    48  not increased by a permanent vacancy allowance since the housing  accom-
    49  modation became subject to this act, the number of years that such hous-
    50  ing  accommodation  has  been  subject to this act. Provided that if the
    51  previous legal regulated rent was less than three  hundred  dollars  the
    52  total increase shall be as calculated above plus one hundred dollars per
    53  month.  Provided, further, that if the previous legal regulated rent was
    54  at least three hundred dollars and no more than five hundred dollars  in

    55  no  event  shall the total increase pursuant to this subdivision be less
    56  than one hundred dollars per month. Such increase shall be  in  lieu  of
        A. 5178                             3
 
     1  any allowance authorized for the one or two year renewal component ther-
     2  eof, but shall be in addition to any other increases authorized pursuant
     3  to  this act including an adjustment based upon a major capital improve-
     4  ment,  or  a  substantial  modification or increase of dwelling space or
     5  services, or installation of new equipment or improvements or new furni-
     6  ture or furnishings provided in or to the housing accommodation pursuant
     7  to section six of this act.  The increase authorized in this subdivision
     8  may not be implemented more than one time in any calendar year, notwith-
     9  standing the number of vacancy leases entered into in such year.

    10    § 3. This act shall take effect immediately; provided that the  amend-
    11  ments  to  section  26-511  of  the  rent  stabilization law of nineteen
    12  hundred sixty-nine made by section one of this act shall expire  on  the
    13  same  date  as  such  law expires and shall not affect the expiration of
    14  such law as provided under section 26-520 of  such  law;  and  provided,
    15  further,  that  the  amendments  to  section  4  of the emergency tenant
    16  protection act of nineteen seventy-four made by section two of this  act
    17  shall  expire  on the same date as such act expires and shall not affect
    18  the expiration of such act as provided in section 17 of chapter  576  of
    19  the laws of 1974.