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A05473 Summary:

A05473 Floor Votes:

A05473 Memo:

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



 
BILL NUMBER: A5473               REVISED 3/18/13
 
SPONSOR: Wright (MS)

 
TITLE OF BILL:  An act to amend the emergency tenant protection act of
nineteen seventy-four and the administrative code of the city of New
York, in relation to the regulation of rents
 
 
PURPOSE OR GENERAL IDEA OF BILL:  This bill would prohibit an owner
from adjusting the amount of preferential rent upon the renewal of a
lease.
 
 
SUMMARY OF SPECIFIC PROVISIONS:  The bill would prohibit, where the
amount of rent charged to and paid by the tenant is less than the legal

regulated rent for the housing accommodation, upon the tenant's vacancy
the amount of rent for such housing accommodation may only be increased
to the previously established regulated rent upon vacancy. Such a vacan-
cy may not be caused by an owner or an agent of the owner the failure to
maintain the housing accommodation in a habitable condition.
 
 
JUSTIFICATION:  As housing costs increase across the City of New York,
the displacement of working families and middle class residents from
rent regulated apartments has resulted in a housing crisis. The
displacement of rent regulated tenants has been aggravated by a land-
lord's ability to abandon a preferential rent upon the renewal of a
lease.
 
Prior to a change in law, a preferential rent was permanent for the
duration of a tenancy and could only be increased upon vacancy.  Howev-
er, as a result amendments to the law in 2003, landlords are now permit-

ted to abandon a discounted, preferential rent and impose the statutory
rent upon vacancy or renewal of a lease. Pursuant to this provision,
tenants throughout New York City have faced sudden and unanticipated
rent increases upon lease renewal. As a result, many tenants cannot pay
new rental payments and have been forced out of their rent-regulated
apartments.
 
Equally problematic is that there is no "clean hands" requirement that a
landlord conduct him/herself responsibly where abandoning a preferential
rent and imposing the maximum rent upon vacancy. If a tenant leaves an
apartment that is uninhabitable due unsanitary conditions, lack of heat,
hot water, electricity, repairs, a landlord can precipitously increase
rent upon the vacancy of an apartment. As such law encourages bad actors
to deprive tenants of a habitable apartment in order to benefit from the
ability to abandon a preferential rent.
 
In order to stem the displacement crisis in New York Cit and preserve

the affordable housing stock available to working families and moder-
ate-income residents, the rent regulation laws are in need of reform.
This proposed amendment of the preferential rent provisions is an impor-
tant step in that direction.
 
 
LEGISLATIVE HISTORY:  2012: A1364-A (Jefferies) - Advanced to Third
Reading 2011: A1364 (Jefferies) - Referred to Housing 2010: A465-A
(Jefferies) - Passed Assembly 2009: A465 (Jefferies) - Passed Assembly
2008: A10055A (Jefferies) - Passed Assembly
 
 
FISCAL IMPLICATIONS: None to State.
 
 
EFFECTIVE DATE: This act shall take effect immediately.

A05473 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5473
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 27, 2013
                                       ___________
 
        Introduced  by  M.  of A. WRIGHT, ROSENTHAL -- read once and referred to
          the Committee on Housing
 
        AN ACT to amend the emergency tenant protection act of  nineteen  seven-
          ty-four  and  the  administrative  code  of  the  city of New York, in
          relation to the regulation of rents
 

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision (a-2) of section 10 of section 4 of chapter 576
     2  of the laws of 1974, constituting the emergency tenant protection act of
     3  nineteen  seventy-four, as amended by section 13 of part B of chapter 97
     4  of the laws of 2011, is amended to read as follows:
     5    (a-2) Provides that where the amount of rent charged to  and  paid  by
     6  the  tenant is less than the legal regulated rent for the housing accom-
     7  modation, the amount of rent for such housing accommodation which may be
     8  charged [upon renewal or] upon vacancy thereof may, at the option of the
     9  owner, be based upon such previously established legal  regulated  rent,
    10  as adjusted by [the most recent] all applicable guidelines increases and

    11  other  increases authorized by law; provided, however, that such vacancy
    12  shall not be caused by the failure of the  owner  or  an  agent  of  the
    13  owner,  to  maintain  the  housing  accommodation in compliance with the
    14  warranty of habitability set forth in subdivision  one  of  section  two
    15  hundred  thirty-five-b  of  the real property law.  Where, subsequent to
    16  vacancy, such legal regulated rent,  as  adjusted  by  the  most  recent
    17  applicable  guidelines  increases  and any other increases authorized by
    18  law is two thousand dollars or more per month or, for any housing accom-
    19  modation which is or becomes vacant on or after the  effective  date  of
    20  the  rent  act of 2011, is two thousand five hundred dollars or more per
    21  month, such housing accommodation shall be excluded from the  provisions

    22  of  this  act pursuant to paragraph thirteen of subdivision a of section
    23  five of this act.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00402-01-3
        A. 5473                             2
 
     1    § 2. 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; provided, however, that such vacancy
    11  shall not be caused by the failure of the  owner  or  an  agent  of  the
    12  owner,  to  maintain  the  housing  accommodation in compliance with the
    13  warranty of habitability set forth in subdivision  one  of  section  two
    14  hundred  thirty-five-b  of  the real property law.  Where, subsequent to
    15  vacancy, such legal regulated rent, as adjusted by [the most recent] all
    16  applicable guidelines increases and any other  increases  authorized  by

    17  law is two thousand dollars or more per month or, for any housing accom-
    18  modation  which  is  or becomes vacant on or after the effective date of
    19  the rent act of 2011, is two thousand five hundred dollars or  more  per
    20  month,  such housing accommodation shall be excluded from the provisions
    21  of this law pursuant to section 26-504.2 of this chapter.
    22    § 3. This act shall take effect immediately; provided,  however,  that
    23  the  amendments  to section 10 of the emergency tenant protection act of
    24  nineteen seventy-four made by section one of this act  shall  expire  on
    25  the same date as such act expires and shall not affect the expiration of
    26  such  act  as provided in section 17 of chapter 576 of the laws of 1974;
    27  and provided, further, that the amendments to section 26-511 of the rent
    28  stabilization law of nineteen hundred sixty-nine made by section two  of

    29  this act shall expire on the same date as such law expires and shall not
    30  affect  the  expiration  of such law as provided under section 26-520 of
    31  such law.