A07526 Summary:

BILL NOA07526
 
SAME ASNo Same As
 
SPONSORWright
 
COSPNSRHeastie, Farrell, O'Donnell, Aubry, Crespo, Glick, Kavanagh, Gottfried, Lentol, Mosley, Pretlow, Rosenthal, Bichotte, Cook, Davila, Dinowitz, Joyner, Linares, Moya, Pichardo, Robinson, Rodriguez, Sepulveda, Walker, Abinanti, Benedetto, Colton, DenDekker, Jaffee, Ortiz, Perry, Blake, Mayer, Hyndman
 
MLTSPNSR
 
Amd S17, Chap 576 of 1974; rpld S2 sub 2 (n), amd Emerg Hous Ren Cont L, generally; amd S2, Chap 329 of 1963; amd S10, Chap 555 of 1982; amd S4, Chap 402 of 1983; amd S46, Chap 116 of 1997; rpld S5 sub a 13, amd Emerg Ten Prot Act of 1974, generally; rpld S26-504.2, S26-403 sub e 2 sub (k), S26-405 sub g 1 sub (l) & (n), amd NYC Ad Cd, generally; amd S213-a, add S3012-c, CPLR; amd S241.05, add S241.03, Pen L; amd S235-e, RP L; amd SS282-a & 284, Mult Dwell L; rpld S27 sub (h), Chap 4 of 2013
 
Relates to the control and stabilization of rent.
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A07526 Actions:

BILL NOA07526
 
05/14/2015referred to housing
05/19/2015reported referred to codes
05/19/2015reported referred to rules
05/19/2015reported
05/19/2015rules report cal.40
05/19/2015ordered to third reading rules cal.40
05/19/2015passed assembly
05/19/2015delivered to senate
05/19/2015REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
01/06/2016DIED IN SENATE
01/06/2016RETURNED TO ASSEMBLY
01/06/2016ordered to third reading cal.292
01/20/2016committed to housing
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A07526 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7526
 
SPONSOR: Wright (MS)
  TITLE OF BILL: An act to amend chapter 576 of the laws of 1974 amending the emergency housing rent control law relating to the control of and stabilization of rent in certain cases, the emergency housing rent control law, chapter 329 of the laws of 1963 amending the emergency housing rent control law relating to recontrol of rents in Albany, chapter 555 of the laws of 1982 amending the general business law and the administrative code of the city of New York relating to conversion of residential property to cooperative or condominium ownership in the city of New York, chapter 402 of the laws of 1983 amending the general business law relating to conversion of rental residential property to cooperative or condominium ownership in certain municipalities in the counties of Nassau, Westches- ter and Rockland and the rent regulation reform act of 1997, in relation to extending the effectiveness thereof; to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to the regulation of rents; to amend the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law, and the administrative code of the city of New York, in relation to deregulation thresholds; to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to recovery of certain housing accommodations by a landlord; to amend the administrative code of the city of New York and the emergency tenant protection act of nine- teen seventy-four, in relation to limiting rent increase after vacancy of a housing accommodation; to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seven- ty-four, in relation to the declaration of emergencies for certain rental housing accommodations; to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seven- ty-four and the emergency housing rent control law, in relation to approval of major capital improvement rent increases and in relation to extending the length of time over which major capital improvement expenses may be recovered; to amend the administrative code of the city of New York, in relation to waivers of rent adjustments; to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to adjustment of maximum allowable rent; to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to hardship applications; to amend the emergency tenant protection act of nineteen seventy-four, in relation to the declaration of housing emergencies for rental housing accommodations located in buildings owned by certain limited-profit housing companies; to amend the administrative code of the city of New York, in relation to the filing of an overcharge complaint; to amend the penal law, in relation to harassment of a rent regulated tenant; to amend the civil practice law and rules, in relation to residential rent overcharges; to amend the administrative code of the city of New York and the emergency housing rent control law, in relation to the establishment of rent adjustments; to amend the real property law, in relation to the duty of a landlord to provide written receipts and notification of non-payment of rent; to amend the multiple dwelling law, in relation to coverage of interim multiple dwellings and owner obligations; to amend the civil practice law and rules, in relation to prerequisites and certificate of merit in an eviction proceeding and to repeal subdivision (h) of section 27 of chapter 4 of the laws of 2013 amending the real property tax law relating to exemption from taxation to alterations and improvements to multiple dwellings to eliminate fire and health hazards, relating thereto; and to repeal paragraph (n) of subdivision 2 of section 2 of chapter 274 of the laws of 1946, consti- tuting the emergency housing rent control law, paragraph 13 of subdivi- sion a of section 5 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act, subparagraph (k) of paragraph 2 of subdivision e of section 26-403 and subparagraphs (l) and (n) of paragraph 1 of subdivision g of section 26-405 of the administra- tive code of the city of New York and section 26-504.2 of the adminis- trative code of the city of New York related thereto   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to extend the various provisions of the Rent Stabilization and Rent Control Laws and the General Business Law relat- ing to the conversion of residential property to cooperative or condo- minium ownership, for an additional four years, until June 15, 2019. The bill is also intended to enhance tenant protections for rent regulated tenants. It addresses issues including: preferential rent, civil penal- ties, tenant harassment, vacancy decontrol, income and rent deregulation thresholds, landlord recovery of apartments, vacancy increases, expanded coverage for former project-based Section 8 and Mitchell-Lama develop- ments, major capital improvement rent increases, individual apartment improvement rent increases, eligibility for an alternative hardship rent adjustment, rental overcharge complaint examination, rent increases for rent controlled tenants, receipts, notification of non-payment, and certification of court filings. Additionally, it allows owners and tenants to continue to apply for coverage under the loft law and makes related provisions of Chapter 4 of the Laws of 2013, which relate to the loft law, permanent.   SUMMARY OF SPECIFIC PROVISIONS: * Sections one through six would extend rent regulation provisions and General Business Law provisions pertaining to cooperative and condomin- ium conversion for an additional four years, from June 15, 2015 until June 15, 2019. * Sections seven and eight would prohibit owners from adjusting the preferential rent upon renewing a tenant's lease. An increase in the preferential rent upon vacancy would be prohibited if the vacancy was caused by a landlord's violation of the warranty of habitability. * Sections nine through fourteen would increase civil penalties for tenant harassment. A violation of an order of the Division of Housing and Community Renewal (DHCR) would result in a civil penalty of at least $1,000, but not more than $2,000, for the first offense; and at least $2,000, but not more than $4,000, for each subsequent offense. Harass- ment of a tenant to obtain vacancy of his or her housing accommodation would result in a civil penalty of at least $2,000, but not more than $5,000, for the first offense; and at least $10,000, but not more than $15,000, for each subsequent offense, or for a violation consisting of conduct directed at the tenants of more than one housing accommodation. * Sections fifteen through twenty-one would repeal provisions of New York State and New York City laws that remove units from rent stabiliza- tion or rent control upon vacancy when the legal regulated rent is $2,500 or more. Additionally, the bill would reregulate certain units that were deregulated pursuant to vacancy decontrol prior to December 31, 2014. * Sections twenty-two through twenty-five would address high-income/high rent deregulation by increasing the income threshold from $200,000 to $225,000, and increasing the monthly rental threshold from $2,500 to $3,500. * Sections twenty-six through twenty-nine would permit a landlord to recover only one housing accommodation as a primary residence, either: for his or her own personal use and occupancy, or for the use and occu- pancy of the landlord's immediate family. The bill would prohibit such a recovery if a tenant has occupied an apartment for fifteen or more years. * Sections thirty and thirty-one would reduce, from 20% to 7.5%, the amount by which rent may be increased upon vacancy. * Sections thirty-two and thirty-three would include former federal Section 8 projects in the category of housing covered by rent regulation laws, even if such projects were constructed after 1974. The section would apply only to former federal Section 8 projects whose contracts are no longer in effect after the effective date. * Sections thirty-four through forty-six would establish that rental increases associated with major capital improvements (MCIs) are to be surcharges to the legal regulated rent, and therefore must be separately designated and billed as such. The authorized surcharge for MCIs would cease after the cost of improvements is recovered. When calculating the surcharge, the cost of the MCI would be reduced by any grant provided therefor by the New York State Energy Research and Development Authority (NYSERA). The bill would also require that MCI rent adjustments be offset by 100% of the total annual tax abatement benefits and any tax abatement benefits that were received prior to such adjustments, provided that they are the result of participation in the J-51 program. * These sections would also reduce the rent increase amount that a land- lord could collect, for a building, from 1/40th to 1/84th of the cost of individual apartment improvements (IAIs). The bill would establish that rental increases associated with IAIs are to be surcharges to the legal regulated rent. The authorized surcharge for IAIs would cease after the cost of improvements is recovered. The bill would require DHCR to issue a schedule of reasonable costs (based on regional costs), within 120 days of the bill's enactment, for upgrades and improvements that may be claimed as a basis for an adjustment of rent. Landlords would be required to file an explanation of how the vacancy rent was computed with DHCR, along with all documents necessary to support the collection of such increase, within 30 days of a tenant signing a vacancy lease. DHCR would then issue an order approving or disapproving such increase in whole or in part. No increase would be permitted if MICR determines that the owner has outstanding hazardous violations or is not maintain- ing all required building-wide services. * Sections forty-seven and forty-eight would increase the current owner- ship period, from three years to six years, for an owner to be eligible apply for an alternative hardship exemption. * Section forty-nine would bring into rent regulation, buildings that were owned by a Mitchell-Lama limited-profit housing company, where the company has voluntarily dissolved, regardless of the building's initial occupancy date. The section would apply only to Mitchell-Lama buildings whose limited-profit housing company dissolved after the effective date of this bill. * Sections fifty through fifty-six would provide that when considering cases of fraud and/or outstanding orders issued by DHCR, a court or hearing officer may consider evidence based on circumstances that occurred more than four years prior to the filing of an overcharge complaint. These sections would also allow a court or DHCR to consider, in determining the legal regulated rent, any year where a landlord has not timely filed an annual rent registration statement as required by law. An owner or a landlord would be required to, upon the offering of a lease to prospective tenant, provide such tenant with the documentation, the scope of which would be determined by DHCR, used to support any allowable increases in the legal regulated rent during the previous four years. * Sections fifty-seven and fifty-eight would establish the crime of second-degree harassment of a rent-regulated tenant. An owner would be guilty of second-degree harassment of a rent-regulated tenant when they intentionally impair the habitability of a housing accommodation, or create or maintain a condition, which endangers the safety or health of a tenant, with the intent to cause the tenant to vacate. Second-degree harassment of a rent-regulated tenant would be a class A misdemeanor. * Sections fifty-nine through sixty-one would require DHCR to cap the percentage rent increase available to owners of rent controlled apart- ments at a rate equal to the average of the last five years of the Rent Guidelines Board adjustments for one-year renewal leases. * Section sixty-two would require a lessor, or any agent of the lessor authorized to receive rent, to provide the lessee with a written receipt upon the payment of rent for residential purposes in the form of cash, or any instrument other than the personal check of the lessee. The writ- ten receipt must contain the date of payment, the amount, the identity of the premises and period for which paid, and the signature and title of the person receiving the rent. If a request is made by a lessee for a written receipt upon the payment of rent in the form of a personal check, such request shall remain in effect for the duration of such lessee's tenancy. If a payment of rent is made directly to a lessor or its agent, a lessee would receive a written receipt immediately. If a payment of rent is made indirectly to a lessor or its agent, a lessee would receive a written receipt within ten business days of the receipt of payment. If a lessor or its agent does not receive payment for rent within ten business days of the date specified in the lease agreement, such lessor or agent would be required to send the lessee a written notice, within two business days, indicating such failure to receive such rent payment. Failure of a lessor or its agent to provide a lessee with a written notice of non-payment of rent may be used as an affirma- tive defense by the lessee in an eviction proceeding based on the non- payment of rent. * Section sixty-three and sixty-four would remove the six month time limit under which applications for registration as an interim multiple dwelling or for coverage of residential units must occur. It would also make changes to the law necessary to implement continued enrollment. * Section sixty-five would make permanent provisions of chapter 4 of the Laws of 2013 pertaining to lofts. This included: the reduction of mini- mum unit size required to be covered; the prohibition of coverage on units in a building with hazardous activities that are continuing on the date of submission for coverage; the reduction in the percent of rent increases allowed for coming into various stages of compliance for fire and safety standards; and allowing the Loft Board to make cases by case determination on incompatible uses in the building. * Section sixty-six would require the filing of a certificate of merit in any eviction proceeding or in any action to reregulate a rent-regu- lated unit. * Section sixty-seven would establish an immediate effective date.   JUSTIFICATION: Rent Regulation Laws Rent Control and Rent Stabilization in New York State provide protection to approximately 2.5 million tenants across the State. In 2014, there were over 1.05 million rent-regulated units in New York City, representing almost 50% of the City's entire rental stock. The basis for rent regulation is a housing emergency, defined as a vacancy rate below 5%. According to the Housing and Vacancy Survey (HVS), conducted by the U.S. Census Bureau every three years, the vacan- cy rate in New York City and some surrounding counties has consistently remained under 5%. Two of the most recent reports showed a vacancy rate in New York City of 2.91% in 2008 and 3.12% in 2011. Initial findings for the 2014 HVS report demonstrate a City-wide rental vacancy rate of 3.45% during the period between February 2014 and May 2014. As the vacancy rate in New York City and some surrounding counties has consistently remained under 5% since the State's first rent regulation laws were enacted after World War II, it is essential for the State to build stronger and more effective protections for tenants during this chronic housing shortage. For rent regulation laws to continue to protect tenants and keep housing affordable, rent laws must be strength- ened and deregulation-causing loopholes closed. For example, there is no oversight or approval mechanism for individual apartment improvement (IAI) increases, and the increase can be made in addition to any other rent increase to which the landlord is statutorily entitled. Because the IAI occurs in a vacant apartment, a new tenant has no way of knowing what the rent should be, and if work allegedly done justifies the increase. Building owners are also currently allowed to increase the amount of rent based on major capital improvements (MCIs) to their buildings on a schedule to recover all costs within a seven year period. However, tenants have been forced to continue to pay for MCIs long after its costs have been recovered. This bill seeks to balance the conflicting concerns of maintaining affordable housing and insuring adequate incen- tives for investment in MCIs in order to preserve and improve our hous- ing stock. With the shortage of housing in New York City and its surrounding areas, vacancy decontrol only further erodes the stock of rent-regulated hous- ing. Vacancy decontrol can be an incentive for owners of rental housing to withhold services and use forms of harassment to cause rent-regulated tenants to vacate their units. In some instances, renovation costs have been inflated, or even falsified, in order to drive apartment rents to the $2,500 threshold for deregulation upon vacancy. There is an urgent need to repeal these statutory provisions, in order to preserve afforda- ble housing in New York City and protect low- and middle-income fami- lies. In addition to the aforementioned, this bill would make several other significant changes to address losses to rent-regulated housing and strengthen the rent laws in order to protect tenants and support New York communities. This bill is an important step in guaranteeing that the residents of New York can access quality and safe affordable hous- ing.   PRIOR LEGISLATIVE HISTORY: New legislation.   FISCAL IMPLICATIONS: None to the State.
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A07526 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7526
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 14, 2015
                                       ___________
 
        Introduced by M. of A. WRIGHT, FARRELL, O'DONNELL, AUBRY, CRESPO, GLICK,
          SILVER,  KAVANAGH,  GOTTFRIED,  LENTOL,  MOSLEY,  PRETLOW,  ROSENTHAL,
          BICHOTTE, COOK, DAVILA, DINOWITZ,  JOYNER,  LINARES,  MOYA,  PICHARDO,
          ROBINSON,  RODRIGUEZ,  SEPULVEDA, WALKER, ABINANTI, BENEDETTO, COLTON,
          DenDEKKER, JAFFEE, BROOK-KRASNY, ORTIZ -- read once  and  referred  to
          the Committee on Housing
 
        AN  ACT  to amend chapter 576 of the laws of 1974 amending the emergency
          housing rent control law relating to the control of and  stabilization
          of  rent  in  certain  cases,  the emergency housing rent control law,
          chapter 329 of the laws of 1963 amending the  emergency  housing  rent
          control  law  relating to recontrol of rents in Albany, chapter 555 of
          the laws of 1982 amending the general business law and the administra-
          tive code of the city of New York relating to conversion  of  residen-
          tial  property  to cooperative or condominium ownership in the city of
          New York, chapter 402 of the laws of 1983 amending the  general  busi-
          ness  law  relating  to  conversion  of rental residential property to
          cooperative or condominium ownership in certain municipalities in  the
          counties  of  Nassau, Westchester and Rockland and the rent regulation
          reform act of 1997, in relation to extending the effectiveness  there-
          of;  to  amend  the  administrative  code of the city of New York, the
          emergency tenant protection act of nineteen seventy-four and the emer-
          gency housing rent control law,  in  relation  to  the  regulation  of
          rents; to amend the emergency tenant protection act of nineteen seven-
          ty-four,  the  emergency housing rent control law, and the administra-
          tive code of the city of New York, in relation to deregulation thresh-
          olds; to amend the administrative code of the city of  New  York,  the
          emergency tenant protection act of nineteen seventy-four and the emer-
          gency  housing  rent  control  law, in relation to recovery of certain
          housing accommodations by a landlord; 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; to amend the  administrative  code
          of  the  city  of New York and the emergency tenant protection act  of
          nineteen seventy-four, in relation to the declaration  of  emergencies
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10644-10-5

        A. 7526                             2
 
          for certain rental housing accommodations; to amend the administrative
          code  of  the city of New York, the emergency tenant protection act of
          nineteen seventy-four and the emergency housing rent control  law,  in
          relation  to  approval of major capital improvement rent increases and
          in relation to extending the length of time over which  major  capital
          improvement  expenses  may  be  recovered; to amend the administrative
          code of the city of New York, in relation to waivers of  rent  adjust-
          ments;  to  amend the administrative code of the city of New York, the
          emergency tenant protection act of nineteen seventy-four and the emer-
          gency housing rent control law, in relation to adjustment  of  maximum
          allowable  rent;  to  amend the administrative code of the city of New
          York and the emergency tenant protection act of nineteen seventy-four,
          in relation to hardship applications; to amend  the  emergency  tenant
          protection  act  of nineteen seventy-four, in relation to the declara-
          tion of housing emergencies for rental housing accommodations  located
          in  buildings  owned  by  certain limited-profit housing companies; to
          amend the administrative code of the city of New York, in relation  to
          the  filing  of  an  overcharge  complaint; to amend the penal law, in
          relation to harassment of a rent regulated tenant; to amend the  civil
          practice  law  and rules, in relation to residential rent overcharges;
          to amend the administrative code of the city of New York and the emer-
          gency housing rent control law, in relation to  the  establishment  of
          rent  adjustments;  to amend the real property law, in relation to the
          duty of a landlord to provide written  receipts  and  notification  of
          non-payment  of  rent; to amend the multiple dwelling law, in relation
          to coverage of interim multiple dwellings and  owner  obligations;  to
          amend  the  civil practice law and rules, in relation to prerequisites
          and certificate of merit in  an  eviction  proceeding  and  to  repeal
          subdivision  (h) of section 27 of chapter 4 of the laws of 2013 amend-
          ing the real property tax law relating to exemption from  taxation  to
          alterations  and  improvements to multiple dwellings to eliminate fire
          and health hazards, relating thereto; and to repeal paragraph  (n)  of
          subdivision 2 of section 2 of chapter 274 of the laws of 1946, consti-
          tuting  the emergency housing rent control law, paragraph 13 of subdi-
          vision a of section 5 of section 4 of chapter 576 of the laws of 1974,
          constituting the emergency tenant protection act, subparagraph (k)  of
          paragraph  2  of subdivision e of section 26-403 and subparagraphs (l)
          and (n) of paragraph 1 of subdivision  g  of  section  26-405  of  the
          administrative  code  of  the city of New York and section 26-504.2 of
          the administrative code of the city of New York related thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "rent act of 2015".
     3    § 1-a. Section 17 of chapter 576 of the  laws  of  1974  amending  the
     4  emergency  housing  rent  control  law  relating  to  the control of and
     5  stabilization of rent in certain cases, as amended  by  section  1-a  of
     6  part B of chapter 97 of the laws of 2011, is amended to read as follows:
     7    §  17.  Effective  date.    This act shall take effect immediately and
     8  shall remain in full force and effect until and including the  fifteenth
     9  day  of  June [2015] 2019; except that sections two and three shall take
    10  effect with respect to any city having a population of  one  million  or
    11  more  and  section one shall take effect with respect to any other city,

        A. 7526                             3
 
     1  or any town or village whenever the local legislative body  of  a  city,
     2  town  or village determines the existence of a public emergency pursuant
     3  to section three of the emergency  tenant  protection  act  of  nineteen
     4  seventy-four,  as enacted by section four of this act, and provided that
     5  the housing accommodations subject on the effective date of this act  to
     6  stabilization  pursuant  to  the New York city rent stabilization law of
     7  nineteen hundred sixty-nine shall remain subject to such  law  upon  the
     8  expiration of this act.
     9    §  2.  Subdivision  2  of section 1 of chapter 274 of the laws of 1946
    10  constituting the emergency housing  rent  control  law,  as  amended  by
    11  section  2  of  part  B of chapter 97 of the laws of 2011, is amended to
    12  read as follows:
    13    2. The provisions  of  this  act,  and  all  regulations,  orders  and
    14  requirements  thereunder shall remain in full force and effect until and
    15  including June 15, [2015] 2019.
    16    § 3. Section 2 of chapter 329 of the laws of 1963 amending  the  emer-
    17  gency housing rent control law relating to recontrol of rents in Albany,
    18  as  amended by section 3 of part B of chapter 97 of the laws of 2011, is
    19  amended to read as follows:
    20    § 2. This act shall take effect  immediately  and  the  provisions  of
    21  subdivision  6  of section 12 of the emergency housing rent control law,
    22  as added by this act, shall remain in full force and  effect  until  and
    23  including June 15, [2015] 2019.
    24    § 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
    25  al  business  law  and  the  administrative code of the city of New York
    26  relating to conversion of residential property to cooperative or  condo-
    27  minium  ownership  in  the  city of New York, as amended by section 4 of
    28  part B of chapter 97 of the laws of 2011, is amended to read as follows:
    29    § 10. This act shall  take  effect  immediately;  provided,  that  the
    30  provisions  of  sections  one,  two and nine of this act shall remain in
    31  full force and effect only until and including  June  15,  [2015]  2019;
    32  provided  further that the provisions of section three of this act shall
    33  remain in full force and effect only so long  as  the  public  emergency
    34  requiring  the regulation and control of residential rents and evictions
    35  continues as provided in subdivision 3 of section 1 of the  local  emer-
    36  gency  housing rent control act; provided further that the provisions of
    37  sections four, five, six and seven of this act shall expire  in  accord-
    38  ance with the provisions of section 26-520 of the administrative code of
    39  the city of New York as such section of the administrative code is, from
    40  time  to  time, amended; provided further that the provisions of section
    41  26-511 of the administrative code of the city of New York, as amended by
    42  this act, which the New York City Department of Housing Preservation and
    43  Development must find are contained in  the  code  of  the  real  estate
    44  industry  stabilization association of such city in order to approve it,
    45  shall be deemed contained therein as of the effective date of this  act;
    46  and provided further that any plan accepted for filing by the department
    47  of  law on or before the effective date of this act shall continue to be
    48  governed by the provisions of section 352-eeee of the  general  business
    49  law  as they had existed immediately prior to the effective date of this
    50  act.
    51    § 5. Section 4 of chapter 402 of the laws of 1983 amending the general
    52  business law relating to conversion of rental  residential  property  to
    53  cooperative  or  condominium  ownership in certain municipalities in the
    54  counties of Nassau, Westchester and Rockland, as amended by section 5 of
    55  part B of chapter 97 of the laws of 2011, is amended to read as follows:

        A. 7526                             4
 
     1    § 4. This act  shall  take  effect  immediately;  provided,  that  the
     2  provisions  of  sections  one and three of this act shall remain in full
     3  force and effect only until and including  June  15,  [2015]  2019;  and
     4  provided  further that any plan accepted for filing by the department of
     5  law  on  or  before  the effective date of this act shall continue to be
     6  governed by the provisions of section 352-eee of  the  general  business
     7  law  as they had existed immediately prior to the effective date of this
     8  act.
     9    § 6. Subdivision 6 of section 46 of chapter 116 of the  laws  of  1997
    10  constituting  the  rent  regulation  reform  act  of 1997, as amended by
    11  section 6 of part B of chapter 97 of the laws of  2011,  is  amended  to
    12  read as follows:
    13    6.  sections  twenty-eight, twenty-eight-a, twenty-eight-b and twenty-
    14  eight-c of this act shall expire and be deemed repealed after  June  15,
    15  [2015] 2019;
    16    §  7.  Subdivision  (a-2) of section 10 of section 4 of chapter 576 of
    17  the laws of 1974, constituting the emergency tenant  protection  act  of
    18  nineteen  seventy-four, as amended by section 13 of part B of chapter 97
    19  of the laws of 2011, is amended to read as follows:
    20    (a-2) Provides that where the amount of rent charged to  and  paid  by
    21  the  tenant is less than the legal regulated rent for the housing accom-
    22  modation, the amount of rent for such housing accommodation which may be
    23  charged [upon renewal or] upon vacancy thereof may, at the option of the
    24  owner, be based upon such previously established legal  regulated  rent,
    25  as adjusted by [the most recent] all applicable guidelines increases and
    26  other  increases authorized by law; provided, however, that such vacancy
    27  shall not be caused by the failure of the  owner  or  an  agent  of  the
    28  owner,  to  maintain  the  housing  accommodation in compliance with the
    29  warranty of habitability set forth in subdivision  one  of  section  two
    30  hundred  thirty-five-b  of  the  real property law. Where, subsequent to
    31  vacancy, such legal regulated rent,  as  adjusted  by  the  most  recent
    32  applicable  guidelines  increases  and any other increases authorized by
    33  law is two thousand dollars or more per month or, for any housing accom-
    34  modation which is or becomes vacant on or after the  effective  date  of
    35  the  rent  act of 2011, is two thousand five hundred dollars or more per
    36  month, such housing accommodation shall be excluded from the  provisions
    37  of  this  act pursuant to paragraph thirteen of subdivision a of section
    38  five of this act.
    39    § 8. Paragraph 14 of subdivision c of section 26-511 of  the  adminis-
    40  trative code of the city of New York, as amended by section 14 of part B
    41  of chapter 97 of the laws of 2011, is amended to read as follows:
    42    (14) provides that where the amount of rent charged to and paid by the
    43  tenant  is  less  than the legal regulated rent for the housing accommo-
    44  dation, the amount of rent for such housing accommodation which  may  be
    45  charged [upon renewal or] upon vacancy thereof may, at the option of the
    46  owner,  be  based upon such previously established legal regulated rent,
    47  as adjusted by the most recent applicable guidelines increases  and  any
    48  other  increases authorized by law; provided, however, that such vacancy
    49  shall not be caused by the failure of the  owner  or  an  agent  of  the
    50  owner,  to  maintain  the  housing  accommodation in compliance with the
    51  warranty of habitability set forth in subdivision  one  of  section  two
    52  hundred  thirty-five-b  of  the real property law.  Where, subsequent to
    53  vacancy, such legal regulated rent, as adjusted by [the most recent] all
    54  applicable guidelines increases and any other  increases  authorized  by
    55  law is two thousand dollars or more per month or, for any housing accom-
    56  modation  which  is  or becomes vacant on or after the effective date of

        A. 7526                             5
 
     1  the rent act of 2011, is two thousand five hundred dollars or  more  per
     2  month,  such housing accommodation shall be excluded from the provisions
     3  of this law pursuant to section 26-504.2 of this chapter.
     4    §  9.  Paragraphs  1  and  2 of subdivision c of section 26-516 of the
     5  administrative code of the city of New York, as amended by section 1  of
     6  chapter 480 of the laws of 2009, are amended to read as follows:
     7    (1)  to  have  violated  an order of the division the commissioner may
     8  impose by administrative order after hearing, a civil  penalty  [in  the
     9  amount  of  one  thousand dollars for the first such offense and two] at
    10  minimum in the amount of one thousand but not  to  exceed  two  thousand
    11  dollars  for  the  first such offense, and at a minimum in the amount of
    12  two thousand but not to exceed four thousand dollars for each subsequent
    13  offense; or
    14    (2) to have harassed a tenant to obtain vacancy of his or her  housing
    15  accommodation, the commissioner may impose by administrative order after
    16  hearing,  a  civil penalty for any such violation. Such penalty shall be
    17  [in the amount of two thousand dollars for a first such offense  and  up
    18  to  ten] at minimum in the amount of two thousand but not to exceed five
    19  thousand dollars for the first such  offense,  and  at  minimum  in  the
    20  amount  of  ten  thousand but not to exceed fifteen thousand dollars for
    21  each subsequent  offense  or  for  a  violation  consisting  of  conduct
    22  directed at the tenants of more than one housing accommodation.
    23    §  10.  Paragraph 2 of subdivision c of section 26-516 of the adminis-
    24  trative code of the city of New York, as amended by section 2 of chapter
    25  480 of the laws of 2009, is amended to read as follows:
    26    (2) to have harassed a tenant to obtain vacancy of his or her  housing
    27  accommodation, the commissioner may impose by administrative order after
    28  hearing,  a  civil penalty for any such violation. Such penalty shall be
    29  [in the amount of two thousand dollars for a first such offense  and  up
    30  to  ten] at minimum in the amount of two thousand but not to exceed five
    31  thousand dollars for the first such offense, and at  a  minimum  in  the
    32  amount  of  ten  thousand but not to exceed fifteen thousand dollars for
    33  each subsequent  offense  or  for  a  violation  consisting  of  conduct
    34  directed at the tenants of more than one housing accommodation.
    35    §  11.  Subparagraph  (a)  of  paragraph 2 of subdivision b of section
    36  26-413 of the administrative code of the city of New York, as amended by
    37  section 3 of chapter 480 of the laws of 2009,  is  amended  to  read  as
    38  follows:
    39    (a)  Impose by administrative order after hearing, a civil penalty for
    40  any violation of said section and bring an action to recover same in any
    41  court of competent jurisdiction. Such penalty in the case of a violation
    42  of subdivision d of such section shall be [in the amount of two thousand
    43  dollars for the first offense and ten] at minimum in the amount  of  two
    44  thousand  but  not  to  exceed  five thousand dollars for the first such
    45  offense, and at minimum in the amount of ten thousand but not to  exceed
    46  fifteen  thousand dollars for each subsequent offense or for a violation
    47  consisting of conduct directed at the tenants of more than  one  housing
    48  accommodation;  and  in  the case of any other violation of such section
    49  [in the amount of one thousand dollars for the first  such  offense  and
    50  two]  at  minimum  in  the  amount of one thousand but not to exceed two
    51  thousand dollars for the first such  offense,  and  at  minimum  in  the
    52  amount  of two thousand but not to exceed four thousand dollars for each
    53  subsequent offense. Such order by the city rent agency shall be deemed a
    54  final determination for the purposes of judicial review as  provided  in
    55  section  26-411  of this chapter. Such action shall be brought on behalf
    56  of the city and any amount recovered shall be paid into the city  treas-

        A. 7526                             6
 
     1  ury.  Such  right  of action may be released, compromised or adjusted by
     2  the city rent agency at any time subsequent  to  the  issuance  of  such
     3  administrative order.
     4    §  12.  Subparagraph  (a)  of  paragraph 2 of subdivision b of section
     5  26-413 of the administrative code of the city of New York, as amended by
     6  section 4 of chapter 480 of the laws of 2009,  is  amended  to  read  as
     7  follows:
     8    (a)  Impose by administrative order after hearing, a civil penalty for
     9  any violation of said section and bring an action to recover same in any
    10  court of competent jurisdiction. Such penalty in the case of a violation
    11  of subdivision d of such section shall be [in the amount of two thousand
    12  dollars for a first such offense and ten] at minimum in  the  amount  of
    13  two  thousand but not to exceed five thousand dollars for the first such
    14  offense, and at minimum in the amount of ten thousand but not to  exceed
    15  fifteen  thousand dollars for each subsequent offense or for a violation
    16  consisting of conduct directed at the tenants of more than  one  housing
    17  accommodation;  and  in  the case of any other violation of such section
    18  [in the amount of one thousand dollars for the first  such  offense  and
    19  two]  at  minimum  in  the  amount of one thousand but not to exceed two
    20  thousand dollars for the first such  offense,  and  at  minimum  in  the
    21  amount  of two thousand but not to exceed four thousand dollars for each
    22  subsequent offense. Such order by the city rent agency shall be deemed a
    23  final determination for the purposes of judicial review as  provided  in
    24  section  26-411  of this chapter. Such action shall be brought on behalf
    25  of the city and any amount recovered shall be paid into the city  treas-
    26  ury.  Such  right  of action may be released, compromised or adjusted by
    27  the city rent agency at any time subsequent  to  the  issuance  of  such
    28  administrative order.
    29    §  13. Clauses (i) and (ii) of paragraph 3 of subdivision a of section
    30  12 of section 4 of chapter 576 of the  laws  of  1974  constituting  the
    31  emergency  tenant protection act of nineteen seventy-four, as amended by
    32  section 5 of chapter 480 of the laws of 2009, are  amended  to  read  as
    33  follows:
    34    (i)  to  have  violated  an order of the division the commissioner may
    35  impose by administrative order after hearing, a civil  penalty  [in  the
    36  amount  of  one  thousand dollars for the first such offense and two] at
    37  minimum in the amount of one thousand but not  to  exceed  two  thousand
    38  dollars  for the first such offense, and at minimum in the amount of two
    39  thousand but not to exceed four thousand  dollars  for  each  subsequent
    40  offense; or
    41    (ii) to have harassed a tenant to obtain vacancy of his housing accom-
    42  modation,  the  commissioner  may  impose  by administrative order after
    43  hearing, a civil penalty for any such violation. Such penalty  shall  be
    44  [in  the  amount  of two thousand dollars for the first such offense and
    45  ten] at minimum in the amount of two thousand but  not  to  exceed  five
    46  thousand  dollars  for  the  first  such  offense, and at minimum in the
    47  amount of ten thousand but not to exceed fifteen  thousand  dollars  for
    48  each  subsequent  offense  or  for  a  violation  consisting  of conduct
    49  directed at the tenants of more than one housing accommodation.
    50    § 14. Clause (ii) of paragraph 3 of subdivision a  of  section  12  of
    51  section  4 of chapter 576 of the laws of 1974 constituting the emergency
    52  tenant protection act of nineteen seventy-four, as amended by section  6
    53  of chapter 480 of the laws of 2009, is amended to read as follows:
    54    (ii) to have harassed a tenant to obtain vacancy of his housing accom-
    55  modation,  the  commissioner  may  impose  by administrative order after
    56  hearing, a civil penalty for any such violation. Such penalty  shall  be

        A. 7526                             7
 
     1  [in  the  amount  of two thousand dollars for the first such offense and
     2  ten] at minimum in the amount of two thousand but  not  to  exceed  five
     3  thousand  dollars  for  the  first  such  offense, and at minimum in the
     4  amount  of  ten  thousand but not to exceed fifteen thousand dollars for
     5  each subsequent  offense  or  for  a  violation  consisting  of  conduct
     6  directed at the tenants of more than one housing accommodation.
     7    §  15.  Paragraph  (n) of subdivision 2 of section 2 of chapter 274 of
     8  the laws of 1946, constituting the emergency housing rent  control  law,
     9  is REPEALED.
    10    § 16. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
    11  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
    12  protection act of nineteen seventy-four, is REPEALED.
    13    § 17. Subparagraph (k) of paragraph 2  of  subdivision  e  of  section
    14  26-403 of the administrative code of the city of New York is REPEALED.
    15    §  18.  Section 26-504.2 of the administrative code of the city of New
    16  York is REPEALED.
    17    § 19. Any housing accommodations that prior to the effective  date  of
    18  this   act  were  excluded  from  coverage  from  the  emergency  tenant
    19  protection act of nineteen  seventy-four,  the  emergency  housing  rent
    20  control  law or the administrative code of the city of New York pursuant
    21  to the provisions of law repealed by sections two, three, four and  five
    22  of  this act, and where such housing accommodations were located outside
    23  the city of New York and were rented to a tenant between January 1, 2013
    24  and the effective date of this act for less  than  $3,500.00  per  month
    25  regardless  of  any subsequent payment of a higher monthly rent, or were
    26  located within the city of New York and were rented to a tenant  between
    27  January  1,  2013  and  the  effective  date  of  this act for less than
    28  $5,000.00 per month, regardless of any subsequent payment  of  a  higher
    29  monthly  rent,  shall  be  subject to the provisions of such act, law or
    30  administrative code, respectively. Notwithstanding the provisions of any
    31  lease or rental agreement, the legal regulated rent or maximum  collect-
    32  ible rent of any housing accommodation excluded from regulation prior to
    33  the  effective  date of this act by reason of the provisions repealed by
    34  sections two, three, four and five of this act and made subject to regu-
    35  lation shall be the actual rent paid by a tenant on  December  31,  2014
    36  or, if no rent was paid for such accommodation on December 31, 2014, the
    37  most recent actual rent paid by a tenant for such accommodation prior to
    38  December  31,  2014,  subject  to  further adjustment in accordance with
    39  applicable provisions of law.
    40    § 20. Paragraph 14 of subdivision c of section 26-511 of the  adminis-
    41  trative code of the city of New York, as amended by section 14 of part B
    42  of chapter 97 of the laws of 2011, is amended to read as follows:
    43    (14) provides that where the amount of rent charged to and paid by the
    44  tenant  is  less  than the legal regulated rent for the housing accommo-
    45  dation, the amount of rent for such housing accommodation which  may  be
    46  charged  upon  renewal or upon vacancy thereof may, at the option of the
    47  owner, be based upon such previously established legal  regulated  rent,
    48  as  adjusted  by the most recent applicable guidelines increases and any
    49  other increases authorized by law. [Where, subsequent to  vacancy,  such
    50  legal  regulated  rent, as adjusted by the most recent applicable guide-
    51  lines increases and any other increases authorized by law is  two  thou-
    52  sand  dollars  or more per month or, for any housing accommodation which
    53  is or becomes vacant on or after the effective date of the rent  act  of
    54  2011, is two thousand five hundred dollars or more per month, such hous-
    55  ing  accommodation  shall  be  excluded  from the provisions of this law
    56  pursuant to section 26-504.2 of this chapter.]

        A. 7526                             8
 
     1    § 21. Subdivision (a-2) of section 10 of section 4 of chapter  576  of
     2  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 applicable guidelines increases and other
    11  increases  authorized  by law. [Where, subsequent to vacancy, such legal
    12  regulated rent, as adjusted by the  most  recent  applicable  guidelines
    13  increases  and  any  other  increases  authorized by law is two thousand
    14  dollars or more per month or, for any housing accommodation which is  or
    15  becomes  vacant  on or after the effective date of the rent act of 2011,
    16  is two thousand five hundred dollars or more  per  month,  such  housing
    17  accommodation shall be excluded from the provisions of this act pursuant
    18  to paragraph thirteen of subdivision a of section five of this act.]
    19    §  22. Paragraphs 2 and 3 of subdivision (a) of section 5-a of section
    20  4 of chapter 576 of the laws of 1974, constituting the emergency  tenant
    21  protection  act of nineteen seventy-four, as added by section 30 of part
    22  B of chapter 97 of the laws of 2011, are amended to read as follows:
    23    2. Deregulation income threshold means total annual  income  equal  to
    24  one  hundred  seventy-five thousand dollars in each of the two preceding
    25  calendar years for proceedings commenced before July first, two thousand
    26  eleven. For proceedings commenced on or after July first,  two  thousand
    27  eleven,  the deregulation income threshold means the total annual income
    28  equal to two hundred thousand dollars  in  each  of  the  two  preceding
    29  calendar  years.   For proceedings commenced on or after July first, two
    30  thousand fifteen, the deregulation  income  threshold  means  the  total
    31  annual  income equal to two hundred twenty-five thousand dollars in each
    32  of the two preceding calendar years.
    33    3.  Deregulation  rent  threshold  means  two  thousand  dollars   for
    34  proceedings  commenced  before  July  first,  two  thousand  eleven. For
    35  proceedings commenced on or after July first, two thousand  eleven,  the
    36  deregulation  rent  threshold  means  two thousand five hundred dollars.
    37  For proceedings commenced on or after July first, two thousand  fifteen,
    38  the  deregulation  rent  threshold  means  three  thousand  five hundred
    39  dollars.
    40    § 23. Paragraphs 2 and 3 of subdivision (a) of section 2-a of  chapter
    41  274 of the laws of 1946, constituting the emergency housing rent control
    42  law, as added by section 32 of part B of chapter 97 of the laws of 2011,
    43  are amended to read as follows:
    44    2.  Deregulation  income  threshold means total annual income equal to
    45  one hundred seventy-five thousand dollars in each of the  two  preceding
    46  calendar years for proceedings commenced before July first, two thousand
    47  eleven.  For  proceedings commenced on or after July first, two thousand
    48  eleven, the deregulation income threshold means the total annual  income
    49  equal  to  two  hundred  thousand  dollars  in each of the two preceding
    50  calendar years.  For proceedings commenced on or after July  first,  two
    51  thousand  fifteen,  the  deregulation  income  threshold means the total
    52  annual income equal to two hundred twenty-five thousand dollars in  each
    53  of the two preceding calendar years.
    54    3.   Deregulation  rent  threshold  means  two  thousand  dollars  for
    55  proceedings commenced prior to July  first,  two  thousand  eleven.  For
    56  proceedings  commenced  on or after July first, two thousand eleven, the

        A. 7526                             9
 
     1  deregulation rent threshold means two  thousand  five  hundred  dollars.
     2  For  proceedings commenced on or after July first, two thousand fifteen,
     3  the deregulation  rent  threshold  means  three  thousand  five  hundred
     4  dollars.
     5    § 24. Paragraphs 2 and 3 of subdivision (a) of section 26-403.1 of the
     6  administrative  code  of the city of New York, as added by section 34 of
     7  part B of chapter 97 of the  laws  of  2011,  are  amended  to  read  as
     8  follows:
     9    2.  Deregulation  income  threshold means total annual income equal to
    10  one hundred seventy-five thousand dollars in each of the  two  preceding
    11  calendar  years for proceedings commenced prior to July first, two thou-
    12  sand eleven. For proceedings commenced on or after July first, two thou-
    13  sand eleven, the deregulation income threshold means  the  total  annual
    14  income  equal to two hundred thousand dollars in each of the two preced-
    15  ing calendar years.  For proceedings commenced on or after  July  first,
    16  two  thousand fifteen, the deregulation income threshold means the total
    17  annual income equal to two hundred twenty-five thousand dollars in  each
    18  of the two preceding calendar years.
    19    3.   Deregulation  rent  threshold  means  two  thousand  dollars  for
    20  proceedings commenced  before  July  first,  two  thousand  eleven.  For
    21  proceedings  commenced  on or after July first, two thousand eleven, the
    22  deregulation rent threshold means two  thousand  five  hundred  dollars.
    23  For  proceedings commenced on or after July first, two thousand fifteen,
    24  the deregulation  rent  threshold  means  three  thousand  five  hundred
    25  dollars.
    26    § 25. Paragraphs 2 and 3 of subdivision (a) of section 26-504.3 of the
    27  administrative  code  of the city of New York, as added by section 36 of
    28  part B of chapter 97 of the  laws  of  2011,  are  amended  to  read  as
    29  follows:
    30    2.  Deregulation  income  threshold means total annual income equal to
    31  one hundred seventy-five thousand dollars in each of the  two  preceding
    32  calendar years for proceedings commenced before July first, two thousand
    33  eleven.  For  proceedings commenced on or after July first, two thousand
    34  eleven, the deregulation income threshold means the total annual  income
    35  equal  to  two  hundred  thousand  dollars  in each of the two preceding
    36  calendar years.  For proceedings commenced on or after July  first,  two
    37  thousand  fifteen,  the  deregulation  income  threshold means the total
    38  annual income equal to two hundred twenty-five thousand dollars in  each
    39  of the two preceding calendar years.
    40    3.   Deregulation  rent  threshold  means  two  thousand  dollars  for
    41  proceedings commenced  before  July  first,  two  thousand  eleven.  For
    42  proceedings  commenced  on or after July first, two thousand eleven, the
    43  deregulation rent threshold means two  thousand  five  hundred  dollars.
    44  For  proceedings commenced on or after July first, two thousand fifteen,
    45  the deregulation  rent  threshold  means  three  thousand  five  hundred
    46  dollars.
    47    §  26.  Paragraph 1 of subdivision b of section 26-408 of the adminis-
    48  trative code of the city of New York is amended to read as follows:
    49    (1) The landlord seeks in good faith to recover possession of a  hous-
    50  ing  accommodation because of immediate and compelling necessity for his
    51  or her own personal use and occupancy as his or her primary residence or
    52  for the use and occupancy of his or her immediate family as their prima-
    53  ry residence provided,  however,  that  this  subdivision  shall  permit
    54  recovery  of  only one housing accommodation and shall not apply where a
    55  member of the household lawfully occupying the housing accommodation  is
    56  sixty-two years of age or older, has been a tenant in a housing accommo-

        A. 7526                            10
 
     1  dation  in  that  building for [twenty] fifteen years or more, or has an
     2  impairment which results from anatomical, physiological or psychological
     3  conditions, other than addiction to alcohol, gambling, or any controlled
     4  substance,  which  are demonstrable by medically acceptable clinical and
     5  laboratory diagnostic techniques, and which are expected to be permanent
     6  and which prevent the tenant from engaging in  any  substantial  gainful
     7  employment; or
     8    §  27.  Subparagraph  (b)  of  paragraph 9 of subdivision c of section
     9  26-511 of the administrative code of the city of New York is amended  to
    10  read as follows:
    11    (b)  where  he  or  she  seeks  to recover possession of one [or more]
    12  dwelling [units] unit because of immediate and compelling necessity  for
    13  his  or  her  own personal use and occupancy as his or her primary resi-
    14  dence [in the city of New York and/or] or for the use and occupancy of a
    15  member of his or her immediate family as his or  her  primary  residence
    16  [in  the  city  of  New  York], provided however, that this subparagraph
    17  shall permit recovery of only one dwelling  unit  and  shall  not  apply
    18  where a tenant or the spouse of a tenant lawfully occupying the dwelling
    19  unit is sixty-two years of age or older, has been a tenant in a dwelling
    20  unit  in  that  building for fifteen years or more, or has an impairment
    21  which results from anatomical,  physiological  or  psychological  condi-
    22  tions,  other  than  addiction  to  alcohol, gambling, or any controlled
    23  substance, which are demonstrable by medically acceptable  clinical  and
    24  laboratory diagnostic techniques, and which are expected to be permanent
    25  and  which  prevent  the tenant from engaging in any substantial gainful
    26  employment, unless such  owner  offers  to  provide  and  if  requested,
    27  provides  an equivalent or superior housing accommodation at the same or
    28  lower stabilized rent in a closely proximate  area.  The  provisions  of
    29  this  subparagraph shall only permit one of the individual owners of any
    30  building to recover possession of one [or more]  dwelling  [units]  unit
    31  for  his or her own personal use and/or for that of his or her immediate
    32  family. [Any] A dwelling unit recovered by an  owner  pursuant  to  this
    33  subparagraph  shall  not  for a period of three years be rented, leased,
    34  subleased or assigned to any person other than a person for whose  bene-
    35  fit recovery of the dwelling unit is permitted pursuant to this subpara-
    36  graph  or  to  the tenant in occupancy at the time of recovery under the
    37  same terms as the original lease. This subparagraph shall not be  deemed
    38  to establish or eliminate any claim that the former tenant of the dwell-
    39  ing  unit  may otherwise have against the owner. Any such rental, lease,
    40  sublease or assignment during such period to any  other  person  may  be
    41  subject  to  a  penalty of a forfeiture of the right to any increases in
    42  residential rents in such building for a period of three years; or
    43    § 28. Subdivision a of section 10 of section 4 of chapter 576  of  the
    44  laws  of 1974, constituting the emergency tenant protection act of nine-
    45  teen seventy-four, as amended by chapter 234 of the  laws  of  1984,  is
    46  amended to read as follows:
    47    a.  For  cities having a population of less than one million and towns
    48  and villages, the state division of housing and community renewal  shall
    49  be  empowered  to  implement  this  act by appropriate regulations. Such
    50  regulations may encompass such speculative or manipulative practices  or
    51  renting or leasing practices as the state division of housing and commu-
    52  nity  renewal determines constitute or are likely to cause circumvention
    53  of this act. Such regulations shall prohibit practices which are  likely
    54  to prevent any person from asserting any right or remedy granted by this
    55  act,  including  but  not limited to retaliatory termination of periodic
    56  tenancies and shall require owners to grant a new one or two year vacan-

        A. 7526                            11
 
     1  cy or renewal lease at the option of the tenant, except where a mortgage
     2  or mortgage commitment existing as of the local effective date  of  this
     3  act  provides that the owner shall not grant a one-year lease; and shall
     4  prescribe  standards with respect to the terms and conditions of new and
     5  renewal leases, additional rent and such  related  matters  as  security
     6  deposits, advance rental payments, the use of escalator clauses in leas-
     7  es and provision for increase in rentals for garages and other ancillary
     8  facilities,  so  as to insure that the level of rent adjustments author-
     9  ized under this law will not be  subverted  and  made  ineffective.  Any
    10  provision  of  the  regulations permitting an owner to refuse to renew a
    11  lease on grounds that the owner seeks to recover possession of  [the]  a
    12  housing  accommodation  for  his or her own use and occupancy or for the
    13  use and occupancy of his or her immediate family shall  permit  recovery
    14  of  only  one  housing accommodation, shall require that an owner demon-
    15  strate immediate and compelling need and that the housing  accommodation
    16  will  be  the  proposed occupants' primary residence and shall not apply
    17  where a member of the housing accommodation is sixty-two years of age or
    18  older, has been a tenant in a housing accommodation in that building for
    19  [twenty] fifteen years or more, or has an impairment which results  from
    20  anatomical,   physiological  or  psychological  conditions,  other  than
    21  addiction to alcohol, gambling, or any controlled substance,  which  are
    22  demonstrable  by medically acceptable clinical and laboratory diagnostic
    23  techniques, and which are expected to be permanent and which prevent the
    24  tenant from engaging in any substantial gainful employment.
    25    § 29. Paragraph (a) of subdivision 2 of section 5 of  chapter  274  of
    26  the  laws  of 1946, constituting the emergency housing rent control law,
    27  as amended by chapter 234 of the laws of 1984, is  amended  to  read  as
    28  follows:
    29    (a)  the landlord seeks in good faith to recover possession of a hous-
    30  ing [accommodations] accommodation because of immediate  and  compelling
    31  necessity  for  his  or her own personal use and occupancy as his or her
    32  primary residence or for the use and occupancy of his or  her  immediate
    33  family  as  their primary residence; provided, however, this subdivision
    34  shall permit recovery of only one housing accommodation  and  shall  not
    35  apply  where  a  member  of the household lawfully occupying the housing
    36  accommodation is sixty-two years of age or older, has been a tenant in a
    37  housing accommodation in that building for  [twenty]  fifteen  years  or
    38  more,  or has an impairment which results from anatomical, physiological
    39  or psychological conditions, other than addiction to alcohol,  gambling,
    40  or any controlled substance, which are demonstrable by medically accept-
    41  able  clinical  and  laboratory  diagnostic  techniques,  and  which are
    42  expected to be permanent and which prevent the tenant from  engaging  in
    43  any substantial gainful employment; or
    44    § 30. Paragraph 5-a of subdivision c of section 26-511 of the adminis-
    45  trative  code of the city of New York, as amended by section 7 of part B
    46  of chapter 97 of the laws of 2011, is amended to read as follows:
    47    (5-a) provides that, notwithstanding any provision  of  this  chapter,
    48  the  legal  regulated  rent for any vacancy lease entered into after the
    49  effective date of this paragraph shall be  as  hereinafter  provided  in
    50  this  paragraph.  The  previous  legal  regulated  rent for such housing
    51  accommodation shall be increased by the following: (i)  if  the  vacancy
    52  lease is for a term of two years, [twenty] seven and one-half percent of
    53  the previous legal regulated rent; or (ii) if the vacancy lease is for a
    54  term  of  one  year  the  increase  shall be [twenty] seven and one-half
    55  percent of the previous legal regulated rent less an amount equal to the
    56  difference between (a) the two year renewal lease guideline  promulgated

        A. 7526                            12
 
     1  by  the guidelines board of the city of New York applied to the previous
     2  legal regulated rent and  (b)  the  one  year  renewal  lease  guideline
     3  promulgated  by  the guidelines board of the city of New York applied to
     4  the  previous  legal regulated rent. In addition, if the legal regulated
     5  rent was not increased with respect to such housing accommodation  by  a
     6  permanent  vacancy allowance within eight years prior to a vacancy lease
     7  executed on or after the effective date of  this  paragraph,  the  legal
     8  regulated  rent may be further increased by an amount equal to the prod-
     9  uct resulting from multiplying such previous  legal  regulated  rent  by
    10  six-tenths  of  one  percent  and further multiplying the amount of rent
    11  increase resulting therefrom by the greater of (A) the number  of  years
    12  since  the imposition of the last permanent vacancy allowance, or (B) if
    13  the rent was not increased by a permanent vacancy  allowance  since  the
    14  housing  accommodation  became  subject  to  this chapter, the number of
    15  years that such housing accommodation has been subject to this  chapter.
    16  Provided  that  if the previous legal regulated rent was less than three
    17  hundred dollars the total increase shall be as calculated above plus one
    18  hundred dollars per month. Provided, further, that if the previous legal
    19  regulated rent was at least three hundred dollars and no more than  five
    20  hundred  dollars  in  no event shall the total increase pursuant to this
    21  paragraph be less than one hundred  dollars  per  month.  Such  increase
    22  shall  be  in  lieu  of any allowance authorized for the one or two year
    23  renewal component thereof,  but  shall  be  in  addition  to  any  other
    24  increases  authorized  pursuant  to this chapter including an adjustment
    25  based upon a major capital improvement, or a substantial modification or
    26  increase of dwelling space or services, or installation of new equipment
    27  or improvements or new furniture or furnishings provided in  or  to  the
    28  housing  accommodation pursuant to this section. The increase authorized
    29  in this paragraph may not be implemented  more  than  one  time  in  any
    30  calendar year, notwithstanding the number of vacancy leases entered into
    31  in such year.
    32    §  31.  Subdivision (a-1) of section 10 of section 4 of chapter 576 of
    33  the laws of 1974, constituting the emergency tenant  protection  act  of
    34  nineteen  seventy-four,  as amended by section 8 of part B of chapter 97
    35  of the laws of 2011, is amended to read as follows:
    36    (a-1) provides that, notwithstanding any provision of  this  act,  the
    37  legal regulated rent for any vacancy lease entered into after the effec-
    38  tive  date  of  this subdivision shall be as hereinafter set forth.  The
    39  previous legal regulated rent for such housing  accommodation  shall  be
    40  increased  by  the  following: (i) if the vacancy lease is for a term of
    41  two years, [twenty] seven and one-half percent  of  the  previous  legal
    42  regulated  rent;  or (ii) if the vacancy lease is for a term of one year
    43  the increase shall be [twenty] seven and one-half percent of the  previ-
    44  ous  legal regulated rent less an amount equal to the difference between
    45  (a) the two year renewal lease guideline promulgated by  the  guidelines
    46  board  of  the  county  in  which  the  housing accommodation is located
    47  applied to the previous legal  regulated  rent  and  (b)  the  one  year
    48  renewal lease guideline promulgated by the guidelines board of the coun-
    49  ty in which the housing accommodation is located applied to the previous
    50  legal  regulated  rent. In addition, if the legal regulated rent was not
    51  increased with respect to such  housing  accommodation  by  a  permanent
    52  vacancy  allowance  within eight years prior to a vacancy lease executed
    53  on or after the effective date of this subdivision, the legal  regulated
    54  rent  may be further increased by an amount equal to the product result-
    55  ing from multiplying such previous legal regulated rent by six-tenths of
    56  one percent and further multiplying the amount of rent increase  result-

        A. 7526                            13
 
     1  ing  therefrom by the greater of (A) the number of years since the impo-
     2  sition of the last permanent vacancy allowance, or (B) if the  rent  was
     3  not  increased by a permanent vacancy allowance since the housing accom-
     4  modation became subject to this act, the number of years that such hous-
     5  ing  accommodation  has  been  subject to this act. Provided that if the
     6  previous legal regulated rent was less than three  hundred  dollars  the
     7  total increase shall be as calculated above plus one hundred dollars per
     8  month.  Provided, further, that if the previous legal regulated rent was
     9  at least three hundred dollars and no more than five hundred dollars  in
    10  no  event  shall the total increase pursuant to this subdivision be less
    11  than one hundred dollars per month. Such increase shall be  in  lieu  of
    12  any allowance authorized for the one or two year renewal component ther-
    13  eof, but shall be in addition to any other increases authorized pursuant
    14  to  this act including an adjustment based upon a major capital improve-
    15  ment, or a substantial modification or increase  of  dwelling  space  or
    16  services, or installation of new equipment or improvements or new furni-
    17  ture or furnishings provided in or to the housing accommodation pursuant
    18  to section six of this act.  The increase authorized in this subdivision
    19  may not be implemented more than one time in any calendar year, notwith-
    20  standing the number of vacancy leases entered into in such year.
    21    §  32.  Subdivision  a of section 26-504 of the administrative code of
    22  the city of New York, subparagraph (f) of  paragraph  1  as  amended  by
    23  chapter 422 of the laws of 2010, is amended to read as follows:
    24    a.  Class  A  multiple  dwellings  not  owned as a cooperative or as a
    25  condominium, except as provided in section three hundred  fifty-two-eeee
    26  of  the  general  business  law,  containing  six or more dwelling units
    27  which:   (1) were  completed  after  February  first,  nineteen  hundred
    28  forty-seven,  except  dwelling units (a) owned or leased by, or financed
    29  by loans from, a  public  agency  or  public  benefit  corporation,  (b)
    30  subject  to rent regulation under the private housing finance law or any
    31  other state law, (c) aided by government insurance under  any  provision
    32  of  the  national  housing  act, to the extent this chapter or any regu-
    33  lation or order issued thereunder  is  inconsistent  therewith,  or  (d)
    34  located  in  a building for which a certificate of occupancy is obtained
    35  after March tenth, nineteen hundred sixty-nine[;], or (e)  any  class  A
    36  multiple  dwelling which on June first, nineteen hundred sixty-eight was
    37  and still is commonly regarded as a hotel, transient hotel  or  residen-
    38  tial  hotel,  and  which customarily provides hotel service such as maid
    39  service, furnishing and laundering of  linen,  telephone  and  bell  boy
    40  service, secretarial or desk service and use and upkeep of furniture and
    41  fixtures, or (f) not occupied by the tenant, not including subtenants or
    42  occupants,  as his or her primary residence, as determined by a court of
    43  competent jurisdiction, provided, however that no action  or  proceeding
    44  shall  be  commenced  seeking to recover possession on the ground that a
    45  housing accommodation is not occupied by the tenant as his or her prima-
    46  ry residence unless the owner or lessor shall  have  given  thirty  days
    47  notice  to the tenant of his or her intention to commence such action or
    48  proceeding on such grounds. For  the  purposes  of  determining  primary
    49  residency,  a tenant who is a victim of domestic violence, as defined in
    50  section four hundred fifty-nine-a of the social services  law,  who  has
    51  left  the  unit  because  of such violence, and who asserts an intent to
    52  return to the housing accommodation shall be deemed to be occupying  the
    53  unit  as his or her primary residence. For the purposes of this subpara-
    54  graph where a housing accommodation is rented to a not-for-profit hospi-
    55  tal for residential use, affiliated subtenants authorized  to  use  such
    56  accommodations  by  such  hospital shall be deemed to be tenants, or (g)

        A. 7526                            14
 
     1  became vacant on or after June thirtieth, nineteen hundred  seventy-one,
     2  or  become vacant, provided however, that this exemption shall not apply
     3  or become effective with respect to  housing  accommodations  which  the
     4  commissioner  determines  or finds became vacant because the landlord or
     5  any person acting on his or her behalf, with intent to cause the  tenant
     6  to  vacate,  engaged in any course of conduct (including but not limited
     7  to, interruption or discontinuance of essential services)  which  inter-
     8  fered with or disturbed or was intended to interfere with or disturb the
     9  comfort, repose, peace or quiet of the tenant in his or her use or occu-
    10  pancy  of the housing accommodations and provided further that any hous-
    11  ing accommodations exempted by this paragraph shall be subject  to  this
    12  law to the extent provided in subdivision b of this section; or (2) were
    13  decontrolled  by the city rent agency pursuant to section 26-414 of this
    14  title; or (3) are exempt from control by virtue of  [item]  clause  one,
    15  two,  six or seven of subparagraph (i) of paragraph two of subdivision e
    16  of section 26-403 of this title; or (4) were covered by a project  based
    17  assistance contract pursuant to section eight of the United States hous-
    18  ing  act  of 1937 which contract is no longer in effect, notwithstanding
    19  the provisions of subparagraph (d) or  (g)  of  paragraph  one  of  this
    20  subdivision  or  paragraph  five of subdivision a of section five of the
    21  emergency tenant protection act of nineteen seventy-four but subject  to
    22  any  other applicable exceptions in paragraph one of this subdivision or
    23  subdivision (a) of section five of the emergency tenant  protection  act
    24  of nineteen seventy-four, provided however, that any dwelling unit which
    25  becomes  subject  to  this  law  pursuant to this paragraph shall not be
    26  subject to the provisions of subdivision a of  section  26-513  of  this
    27  chapter; and
    28    §  33.  Section  5  of  section  4  of chapter 576 of the laws of 1974
    29  constituting the emergency tenant protection act  of  nineteen  seventy-
    30  four is amended by adding a new subdivision c to read as follows:
    31    c.  Notwithstanding  the provisions of paragraph five of subdivision a
    32  of this section but subject to any other applicable exceptions  in  such
    33  subdivision,  nothing  shall  prevent  the  declaration  of an emergency
    34  pursuant to section three of this act for rental housing  accommodations
    35  located  in  a  building which was covered by a project based assistance
    36  contract pursuant to section eight of the United States housing  act  of
    37  1937  which  contract  is no longer in effect provided however, that any
    38  housing accommodation which becomes subject to this act pursuant to this
    39  subdivision shall not be subject to the provisions of subdivision  a  of
    40  section nine of this act.
    41    §  34.  Subparagraph  (g)  of  paragraph 1 of subdivision g of section
    42  26-405 of the administrative code of the city of New York, as amended by
    43  chapter 749 of the laws of 1990, is amended to read as follows:
    44    (g) (i) Collection of surcharges to the maximum rent authorized pursu-
    45  ant to item (ii) of this subparagraph shall cease  when  the  owner  has
    46  recovered the cost of the major capital improvement;
    47    (ii)  There  has  been  since  July first, nineteen hundred seventy, a
    48  major capital improvement [required for the operation,  preservation  or
    49  maintenance  of the structure. An adjustment under this subparagraph (g)
    50  shall be in an amount sufficient to amortize the cost  of  the  improve-
    51  ments  pursuant  to  this  subparagraph  (g)  over a seven-year period];
    52  provided that the commissioner first finds that  such  improvements  are
    53  deemed depreciable under the internal revenue code and such improvements
    54  are  required  for  the  operation or preservation of the structure.  No
    55  application for  a  major  capital  improvement  rent  increase  may  be
    56  approved if there exist any outstanding hazardous violations at the time

        A. 7526                            15
 
     1  of  the  consideration  of  such  application, as determined pursuant to
     2  regulations of the division of housing  and  community  renewal  or  any
     3  agency  administering  and enforcing a building code in the jurisdiction
     4  in  which  the property is located, unless it is determined by the divi-
     5  sion of housing and community renewal that such work is essential to the
     6  alleviation of the violations and such approval is consistent  with  the
     7  provisions  of  this  section.  Except  in the case of emergency or good
     8  cause, the owner of the property shall file, not less than  thirty  days
     9  before the commencement of the improvement, with the division of housing
    10  and  community  renewal a statement containing information outlining the
    11  scope of work, expected date of completion for such work and an  affida-
    12  vit  setting  forth the following information: (a) every owner of record
    13  and owner of a substantial interest in the property or entity owning the
    14  property or sponsoring the improvement; and (b) a statement that none of
    15  such persons had, within the five years prior to the  improvement,  been
    16  found  to  have  harassed  or  unlawfully evicted tenants by judgment or
    17  determination of a court or agency under the penal  law,  any  state  or
    18  local law regulating rents or any state or local law relating to harass-
    19  ment  of tenants or unlawful eviction. Upon receipt of the scope of work
    20  and affidavit provided for herein, the division of housing and community
    21  renewal shall provide the tenants in occupancy in  such  buildings  with
    22  such  information.  The division of housing and community renewal shall,
    23  in addition, implement procedures including, but not limited to, elicit-
    24  ing tenant comments to determine whether major capital improvement reha-
    25  bilitation work has been  satisfactorily  completed.  No  major  capital
    26  improvement  rent increase shall become effective until any defective or
    27  deficient rehabilitation work has been cured. The increase permitted for
    28  such capital improvement shall be collected as a  monthly  surcharge  to
    29  the  maximum  rent. It shall be separately designated and billed as such
    30  and shall not be compounded by any other adjustment to the maximum rent.
    31  The surcharge allocable to each apartment shall be an  amount  equal  to
    32  the  cost  of  the  improvement  divided  by eighty-four, divided by the
    33  number of rooms in the building, and then multiplied by  the  number  of
    34  rooms  in  such  apartment; provided that the surcharge allocable to any
    35  apartment in any one year may not exceed an amount equal to six  percent
    36  of  the  monthly  rent  collected by the owner for such apartment as set
    37  forth in the schedule of gross rents. Any excess above said six  percent
    38  shall  be  carried  forward  and  collected in future years as a further
    39  surcharge not to exceed an additional six percent in any one year period
    40  until the total surcharge equals the amount it would have  been  if  the
    41  aforementioned six percent limitation did not apply. Notwithstanding any
    42  law  to  the  contrary,  when  calculating  a surcharge, the cost of the
    43  improvement shall be reduced by any moneys  provided  by  the  New  York
    44  state energy research and development authority; or
    45    §  35.  Subparagraph  (k)  of  paragraph 1 of subdivision g of section
    46  26-405 of the administrative code of the city of New York, as amended by
    47  chapter 749 of the laws of 1990, is amended to read as follows:
    48    (k) The landlord has incurred, since January first,  nineteen  hundred
    49  seventy,  in connection with and in addition to a concurrent major capi-
    50  tal improvement pursuant to subparagraph (g) of  this  paragraph,  other
    51  expenditures  to  improve, restore or preserve the quality of the struc-
    52  ture. An adjustment under this subparagraph shall  be  granted  only  if
    53  such  improvements  represent  an  expenditure equal to at least ten per
    54  centum of the total operating and maintenance expenses for the preceding
    55  year. An adjustment under this subparagraph shall be in addition to  any
    56  adjustment  granted  for  the  concurrent  major capital improvement and

        A. 7526                            16
 
     1  shall be [in an amount sufficient to amortize the cost of  the  improve-
     2  ments  pursuant  to  this  subparagraph over a seven-year period] imple-
     3  mented in the same manner as such major capital improvement as a further
     4  surcharge to the maximum rent.
     5    §  36.  Paragraph 6 of subdivision c of section 26-511 of the adminis-
     6  trative code of the city of New York, as amended by chapter 116  of  the
     7  laws of 1997, is amended to read as follows:
     8    (6)  provides  criteria whereby the commissioner may act upon applica-
     9  tions by owners for increases in  excess  of  the  level  of  fair  rent
    10  increase  established under this law provided, however, that such crite-
    11  ria shall provide [(a) as] in regard to  hardship  applications,  for  a
    12  finding that the level of fair rent increase is not sufficient to enable
    13  the  owner  to maintain approximately the same average annual net income
    14  (which shall be computed without regard to debt service, financing costs
    15  or management fees) for the three year period ending on  or  within  six
    16  months  of  the  date  of  an  application  pursuant to such criteria as
    17  compared with annual net income, which prevailed on the average over the
    18  period nineteen hundred sixty-eight through nineteen hundred seventy, or
    19  for the first three years of operation if  the  building  was  completed
    20  since  nineteen  hundred sixty-eight or for the first three fiscal years
    21  after a transfer of title to a new owner  provided  the  new  owner  can
    22  establish  to  the  satisfaction  of  the  commissioner  that  he or she
    23  acquired title to the building as a result of a bona fide  sale  of  the
    24  entire  building  and  that  the new owner is unable to obtain requisite
    25  records for the fiscal years nineteen hundred sixty-eight through  nine-
    26  teen hundred seventy despite diligent efforts to obtain same from prede-
    27  cessors  in  title  and  further provided that the new owner can provide
    28  financial data covering a minimum of six years under his or her  contin-
    29  uous  and uninterrupted operation of the building to meet the three year
    30  to three year comparative test periods herein provided[; and (b)  as  to
    31  completed  building-wide  major capital improvements, for a finding that
    32  such improvements are deemed depreciable under the Internal Revenue Code
    33  and that the cost is to be amortized over  a  seven-year  period,  based
    34  upon  cash  purchase  price  exclusive  of interest or service charges].
    35  Notwithstanding anything to the contrary contained herein,  no  hardship
    36  increase  granted  pursuant  to  this paragraph shall, when added to the
    37  annual gross rents, as determined by the commissioner,  exceed  the  sum
    38  of,  (i) the annual operating expenses, (ii) an allowance for management
    39  services as determined by the commissioner, (iii) actual annual mortgage
    40  debt service (interest and amortization) on its indebtedness to a  lend-
    41  ing institution, an insurance company, a retirement fund or welfare fund
    42  which is operated under the supervision of the banking or insurance laws
    43  of  the  state of New York or the United States, and (iv) eight and one-
    44  half percent of that portion of the fair market value  of  the  property
    45  which  exceeds  the unpaid principal amount of the mortgage indebtedness
    46  referred to in subparagraph (iii) of this paragraph. Fair  market  value
    47  for  the  purposes of this paragraph shall be six times the annual gross
    48  rent. The collection of any increase in  the  stabilized  rent  for  any
    49  apartment pursuant to this paragraph shall not exceed six percent in any
    50  year from the effective date of the order granting the increase over the
    51  rent  set  forth  in the schedule of gross rents, with collectability of
    52  any dollar excess above said sum to be spread forward in similar  incre-
    53  ments  and  added to the stabilized rent as established or set in future
    54  years;

        A. 7526                            17
 
     1    § 37. Subdivision c of section 26-511 of the  administrative  code  of
     2  the  city of New York is amended by adding four new paragraphs 6-b, 6-c,
     3  6-d and 6-e to read as follows:
     4    (6-b) provides criteria whereby the commissioner may act upon applica-
     5  tion  by  owners  for  increases  in  excess  of  the level of fair rent
     6  increase established under this law provided, however, that such  crite-
     7  ria shall provide that:
     8    (i)  as  to completed building-wide major capital improvements, first,
     9  that a finding that such improvements are deemed depreciable  under  the
    10  internal  revenue code and such improvements are required for the opera-
    11  tion or preservation of the structure;
    12    (ii) no application for a major capital improvement rent increase  may
    13  be  approved  if there exist any outstanding hazardous violations at the
    14  time of the consideration of such application, as determined pursuant to
    15  regulations of the division of housing  and  community  renewal  or  any
    16  agency  administering  and enforcing a building code in the jurisdiction
    17  in which the property is located, unless it is determined by  the  divi-
    18  sion of housing and community renewal that such work is essential to the
    19  alleviation  of  the violations and such approval is consistent with the
    20  provisions of this section. Except in the  case  of  emergency  or  good
    21  cause,  the  owner of the property shall file, not less than thirty days
    22  before the commencement of the improvement, with the division of housing
    23  and community renewal a statement containing information  outlining  the
    24  scope  of work, expected date of completion for such work and an affida-
    25  vit setting forth the following information:
    26    (A) every owner of record and owner of a substantial interest  in  the
    27  property  or  entity  owning the property or sponsoring the improvement;
    28  and
    29    (B) a statement that none of such persons had, within the  five  years
    30  prior  to  the  improvement,  been  found to have harassed or unlawfully
    31  evicted tenants by judgment or determination of a court or agency  under
    32  the  penal  law, any state or local law regulating rents or any state or
    33  local law relating to harassment of tenants or unlawful eviction.
    34    Upon receipt of the scope of work and affidavit provided  for  herein,
    35  the  division of housing and community renewal shall provide the tenants
    36  in occupancy in such buildings with such information.  The  division  of
    37  housing  and  community renewal shall, in addition, implement procedures
    38  including, but not limited to, eliciting tenant  comments  to  determine
    39  whether major capital improvement rehabilitation work has been satisfac-
    40  torily  completed.  No  major  capital  improvement  rent increase shall
    41  become effective until any defective or  deficient  rehabilitation  work
    42  has been cured.
    43    (6-c)  the  increase  permitted  for such capital improvement shall be
    44  collected as a monthly surcharge to the legal regulated rent.  It  shall
    45  be  separately designated and billed as such and shall not be compounded
    46  by any annual adjustment of the level of fair rent  provided  for  under
    47  subdivision  b of section 26-510 of this law. The surcharge allocable to
    48  each apartment shall be an amount equal to the cost of  the  improvement
    49  divided  by  eighty-four divided by the number of rooms in the building,
    50  and then multiplied by the number of rooms in such  apartment;  provided
    51  that  the  surcharge allocable to any apartment, in any one year may not
    52  exceed an amount equal to six percent of the monthly rent  collected  by
    53  the  owner  for  such  apartment  as  set forth in the schedule of gross
    54  rents. Any excess above said six percent shall be  carried  forward  and
    55  collected  in future years as a further surcharge not to exceed an addi-
    56  tional six percent in any one year  period  until  the  total  surcharge

        A. 7526                            18
 
     1  equals  the  amount it would have been if the aforementioned six percent
     2  limitation did not apply.
     3    (6-d)  collection  of  surcharges  in excess of the level of fair rent
     4  authorized pursuant to paragraph six-b and  six-c  of  this  subdivision
     5  shall  cease  when the owner has recovered the cost of the major capital
     6  improvement.
     7    (6-e) notwithstanding any law to  the  contrary,  when  calculating  a
     8  surcharge,  the  cost  of the improvement shall be reduced by any moneys
     9  provided by the New York state energy research and development  authori-
    10  ty.
    11    §  38. Paragraph 3 of subdivision d of section 6 of section 4 of chap-
    12  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
    13  protection  act  of  nineteen seventy-four, as amended by chapter 749 of
    14  the laws of 1990, is amended to read as follows:
    15    (3) (i) collection of surcharges in addition to  the  legal  regulated
    16  rent  authorized  pursuant  to subparagraph (ii) of this paragraph shall
    17  cease when the owner  has  recovered  the  cost  of  the  major  capital
    18  improvement;
    19    (ii) there has been since January first, nineteen hundred seventy-four
    20  a major capital improvement [required for the operation, preservation or
    21  maintenance  of  the structure. An adjustment under this paragraph shall
    22  be in an amount sufficient to amortize  the  cost  of  the  improvements
    23  pursuant  to this paragraph over a seven-year period]; provided that the
    24  commissioner first finds that such improvements are  deemed  depreciable
    25  under  the  internal revenue code and such improvements are required for
    26  the operation or preservation of the structure.   No application  for  a
    27  major  capital  improvement rent increase may be approved if there exist
    28  any outstanding hazardous violations at the time of the consideration of
    29  such application, as determined pursuant to regulations of the  division
    30  of housing and community renewal or any agency administering and enforc-
    31  ing  a  building  code  in  the  jurisdiction  in  which the property is
    32  located, unless it is determined by the division of housing and communi-
    33  ty renewal that such  work  is  essential  to  the  alleviation  of  the
    34  violations  and  such approval is consistent with the provisions of this
    35  section. Except in the case of emergency or good cause, the owner of the
    36  property shall file, not less than thirty days before  the  commencement
    37  of the improvement, with the division of housing and community renewal a
    38  statement  containing  information outlining the scope of work, expected
    39  date of completion for such work and  an  affidavit  setting  forth  the
    40  following information: (a) every owner of record and owner of a substan-
    41  tial  interest in the property or entity owning the property or sponsor-
    42  ing the improvement; and (b) a statement that none of such persons  had,
    43  within  the  five  years  prior  to  the improvement, been found to have
    44  harassed or unlawfully evicted tenants by judgment or determination of a
    45  court or agency under the penal law, any state or local  law  regulating
    46  rents  or  any  state  or local law relating to harassment of tenants or
    47  unlawful eviction. Upon receipt of  the  scope  of  work  and  affidavit
    48  provided for herein, the division of housing and community renewal shall
    49  provide  the  tenants  in occupancy in such buildings with such informa-
    50  tion. The division of housing and community renewal shall, in  addition,
    51  implement  procedures  including,  but  not limited to, eliciting tenant
    52  comments to determine whether major capital  improvement  rehabilitation
    53  work  has  been  satisfactorily  completed. No major capital improvement
    54  rent increase shall become effective until any  defective  or  deficient
    55  rehabilitation  work  has  been  cured.  The increase permitted for such
    56  capital improvement shall be collected as a  monthly  surcharge  to  the

        A. 7526                            19
 
     1  legal  regulated  rent.  It shall be separately designated and billed as
     2  such and shall not be compounded by any annual rent  adjustment  author-
     3  ized  by the rent guidelines board under this act. The surcharge alloca-
     4  ble  to  each  apartment  shall  be  an  amount equal to the cost of the
     5  improvement divided by eighty-four, divided by the number  of  rooms  in
     6  the  building, and then multiplied by the number of rooms in such apart-
     7  ment; provided that the surcharge allocable to any apartment in any  one
     8  year  may  not exceed an amount equal to six percent of the monthly rent
     9  collected by the owner for such apartment as set forth in  the  schedule
    10  of  gross  rents.  Any  excess  above  said six percent shall be carried
    11  forward and collected in future years as  a  further  surcharge  not  to
    12  exceed  an additional six percent in any one year period until the total
    13  surcharge equals the amount it would have been if the aforementioned six
    14  percent limitation did not apply. Notwithstanding any law to the contra-
    15  ry, when calculating a surcharge, the cost of the improvement  shall  be
    16  reduced by any moneys provided by the New York state energy research and
    17  development authority, or
    18    §  39.  The second undesignated paragraph of paragraph (a) of subdivi-
    19  sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the
    20  emergency housing rent control law, as amended by section 25 of  part  B
    21  of chapter 97 of the laws of 2011, is amended to read as follows:
    22    No application for adjustment of maximum rent based upon a sales price
    23  valuation  shall  be filed by the landlord under this subparagraph prior
    24  to six months from the date of such sale of the property.  In  addition,
    25  no  adjustment  ordered  by  the  commission based upon such sales price
    26  valuation shall be effective prior to one year from  the  date  of  such
    27  sale.  Where,  however,  the assessed valuation of the land exceeds four
    28  times the assessed valuation of the buildings  thereon,  the  commission
    29  may determine a valuation of the property equal to five times the equal-
    30  ized  assessed  valuation  of  the  buildings,  for the purposes of this
    31  subparagraph. The commission may make a determination that the valuation
    32  of the property is an amount  different  from  such  equalized  assessed
    33  valuation  where  there  is  a  request for a reduction in such assessed
    34  valuation currently pending; or where there has been a reduction in  the
    35  assessed valuation for the year next preceding the effective date of the
    36  current  assessed  valuation  in effect at the time of the filing of the
    37  application. Net annual return shall be the amount by which  the  earned
    38  income  exceeds  the operating expenses of the property, excluding mort-
    39  gage interest and amortization, and excluding  allowances  for  obsoles-
    40  cence  and  reserves, but including an allowance for depreciation of two
    41  per centum of the value of the buildings exclusive of the land,  or  the
    42  amount  shown  for  depreciation of the buildings in the latest required
    43  federal income tax return, whichever is lower; provided,  however,  that
    44  (1)  no  allowance  for  depreciation of the buildings shall be included
    45  where the buildings have been fully depreciated for federal  income  tax
    46  purposes  or  on the books of the owner; or (2) the landlord who owns no
    47  more than four rental units within the state has not been fully  compen-
    48  sated  by  increases  in  rental income sufficient to offset unavoidable
    49  increases in property taxes, fuel, utilities, insurance and repairs  and
    50  maintenance, excluding mortgage interest and amortization, and excluding
    51  allowances  for  depreciation,  obsolescence  and  reserves,  which have
    52  occurred since the federal date determining the maximum rent or the date
    53  the property was acquired by the present owner, whichever is  later;  or
    54  (3) the landlord operates a hotel or rooming house or owns a cooperative
    55  apartment  and  has  not  been  fully compensated by increases in rental
    56  income from the controlled housing accommodations sufficient  to  offset

        A. 7526                            20
 
     1  unavoidable increases in property taxes and other costs as are allocable
     2  to  such controlled housing accommodations, including costs of operation
     3  of such hotel or rooming house,  but  excluding  mortgage  interest  and
     4  amortization,  and  excluding  allowances for depreciation, obsolescence
     5  and reserves, which have occurred since the federal date determining the
     6  maximum rent or the date the landlord commenced  the  operation  of  the
     7  property, whichever is later; or (4) the landlord and tenant voluntarily
     8  enter into a valid written lease in good faith with respect to any hous-
     9  ing  accommodation,  which lease provides for an increase in the maximum
    10  rent not in excess of fifteen per centum and for a term of not less than
    11  two years, except that where such lease  provides  for  an  increase  in
    12  excess  of  fifteen  per  centum,  the  increase  shall be automatically
    13  reduced to fifteen per centum; or (5) the landlord and tenant by  mutual
    14  voluntary  written agreement agree to a substantial increase or decrease
    15  in dwelling space or a change in the services, furniture, furnishings or
    16  equipment provided in the housing accommodations; provided that an owner
    17  shall be entitled to a rent increase where there has been a  substantial
    18  modification  or  increase  of  dwelling  space  or  an  increase in the
    19  services, or installation of new equipment or improvements or new furni-
    20  ture or furnishings provided in or to a tenant's housing  accommodation.
    21  An adjustment authorized pursuant to this clause shall be collected as a
    22  monthly surcharge to the maximum rent. It shall be separately designated
    23  and  billed  as such and shall not be compounded by any other adjustment
    24  to the maximum rent. The permanent increase in the maximum rent for  the
    25  affected  housing accommodation shall be [one-fortieth, in the case of a
    26  building with thirty-five or fewer housing accommodations,  or,  in  the
    27  case  of  a  building  with more than thirty-five housing accommodations
    28  where such permanent increase takes effect on or after  September  twen-
    29  ty-fourth,  two  thousand  eleven,]  one eighty-fourth of the total cost
    30  incurred by the landlord in providing such modification or  increase  in
    31  dwelling space, services, furniture, furnishings or equipment, including
    32  the  cost  of  installation,  but excluding finance charges and cosmetic
    33  improvements provided further that an owner who is entitled  to  a  rent
    34  increase pursuant to this clause shall not be entitled to a further rent
    35  increase based upon the installation of similar equipment, or new furni-
    36  ture or furnishings within the useful life of such new equipment, or new
    37  furniture  or  furnishings.  The  owner shall give written notice to the
    38  commission of any such adjustment pursuant to this clause; or (6)  there
    39  has  been, since March first, nineteen hundred fifty, an increase in the
    40  rental value of the housing accommodations as a result of a  substantial
    41  rehabilitation  of  the  building or housing accommodation therein which
    42  materially adds to the value of the property or appreciably prolongs its
    43  life, excluding ordinary repairs, maintenance and replacements;  or  (7)
    44  (i)  collection of surcharges to the maximum rent authorized pursuant to
    45  item (ii) of this clause shall cease when the owner  has  recovered  the
    46  cost  of  the major capital improvement; (ii) there has been since March
    47  first, nineteen hundred fifty, a major capital improvement [required for
    48  the operation, preservation or maintenance of the  structure];  provided
    49  that  the  commissioner  first  finds  that such improvements are deemed
    50  depreciable under the internal revenue code and  such  improvements  are
    51  required  for the operation or preservation of the structure.  No appli-
    52  cation for a major capital improvement rent increase may be approved  if
    53  there  exist  any  outstanding  hazardous  violations at the time of the
    54  consideration of such application, as determined pursuant to regulations
    55  of the division of housing and community renewal or any agency  adminis-
    56  tering  and  enforcing  a building code in the jurisdiction in which the

        A. 7526                            21
 
     1  property is located, unless it is determined by the division of  housing
     2  and  community renewal that such work is essential to the alleviation of
     3  the violations and such approval is consistent with  the  provisions  of
     4  this  section.  Except in the case of emergency or good cause, the owner
     5  of the property shall  file,  not  less  than  thirty  days  before  the
     6  commencement of the improvement, with the division of housing and commu-
     7  nity  renewal  a statement containing information outlining the scope of
     8  work, expected date of completion for such work and an affidavit setting
     9  forth the following information: (a) every owner of record and owner  of
    10  a  substantial interest in the property or entity owning the property or
    11  sponsoring the improvement; and  (b)  a  statement  that  none  of  such
    12  persons  had, within the five years prior to the improvement, been found
    13  to have harassed or unlawfully evicted tenants by judgment  or  determi-
    14  nation  of a court or agency under the penal law, any state or local law
    15  regulating rents or any state or local law  relating  to  harassment  of
    16  tenants  or  unlawful  eviction.  Upon  receipt of the scope of work and
    17  affidavit provided for herein, the division  of  housing  and  community
    18  renewal  shall  provide  the tenants in occupancy in such buildings with
    19  such information. The division of housing and community  renewal  shall,
    20  in addition, implement procedures including, but not limited to, elicit-
    21  ing tenant comments to determine whether major capital improvement reha-
    22  bilitation  work  has  been  satisfactorily  completed. No major capital
    23  improvement rent increase shall become effective until any defective  or
    24  deficient rehabilitation work has been cured. The increase permitted for
    25  such  capital  improvement  shall be collected as a monthly surcharge to
    26  the maximum rent. It shall be separately designated and billed  as  such
    27  and shall not be compounded by any other adjustment to the maximum rent.
    28  The  surcharge  allocable  to each apartment shall be an amount equal to
    29  the cost of the improvement  divided  by  eighty-four,  divided  by  the
    30  number  of  rooms  in the building, and then multiplied by the number of
    31  rooms in such apartment; provided that the surcharge  allocable  to  any
    32  apartment  in any one year may not exceed an amount equal to six percent
    33  of the monthly rent collected by the owner for  such  apartment  as  set
    34  forth in the schedule of gross rents.  Any excess above said six percent
    35  shall  be  carried  forward  and  collected in future years as a further
    36  surcharge not to exceed an additional six percent in any one year period
    37  until the total surcharge equals the amount it would have  been  if  the
    38  aforementioned six percent limitation did not apply. Notwithstanding any
    39  law  to  the  contrary,  when  calculating  a surcharge, the cost of the
    40  improvement shall be reduced by any moneys  provided  by  the  New  York
    41  state  energy  research and development authority; or (8) there has been
    42  since March first, nineteen hundred fifty, in structures containing more
    43  than four housing  accommodations,  other  improvements  made  with  the
    44  express consent of the tenants in occupancy of at least seventy-five per
    45  centum of the housing accommodations, provided, however, that no adjust-
    46  ment  granted  hereunder  shall  exceed  fifteen  per  centum unless the
    47  tenants have agreed to  a  higher  percentage  of  increase,  as  herein
    48  provided;  or  (9)  there  has been, since March first, nineteen hundred
    49  fifty, a subletting without written consent  from  the  landlord  or  an
    50  increase  in  the  number  of adult occupants who are not members of the
    51  immediate family of the tenant, and the landlord has  not  been  compen-
    52  sated  therefor  by  adjustment of the maximum rent by lease or order of
    53  the commission or pursuant to the federal act; or (10) the  presence  of
    54  unique  or  peculiar circumstances materially affecting the maximum rent
    55  has resulted in a maximum rent which is  substantially  lower  than  the

        A. 7526                            22
 
     1  rents  generally  prevailing  in the same area for substantially similar
     2  housing accommodations.
     3    §  40.  Subdivision dd of section 11-243 of the administrative code of
     4  the city of New York, as added by local law number 41 of the city of New
     5  York for the year 1988, is amended to read as follows:
     6    dd. [Partial waiver] Waiver of rent adjustments attributable to  major
     7  capital  improvements.  (1)  The provisions of this subdivision apply to
     8  and are additional requirements for claiming or receiving any tax abate-
     9  ment under this section, except as provided in paragraphs three and four
    10  of this subdivision.
    11    (2) The owner of the property shall file with the department of  hous-
    12  ing  preservation and development, on the date any application for bene-
    13  fits is made, a declaration stating that in  consideration  of  any  tax
    14  abatement  benefits  which  may be received pursuant to such application
    15  for alterations or improvements constituting a  major  capital  improve-
    16  ment,  such  owner  agrees  to waive the collection of a [portion of the
    17  total annual amount of any] rent adjustment attributable to  such  major
    18  capital  improvement which may be granted by the New York state division
    19  of housing and community renewal pursuant to the rent stabilization code
    20  equal to [one-half of] the total annual  amount  of  the  tax  abatement
    21  benefits  which  the property receives pursuant to such application with
    22  respect to such alterations or improvements. Such waiver shall  commence
    23  on  the  date  of the first collection of such rent adjustment, provided
    24  that, in the event that such tax abatement benefits were received  prior
    25  to  such  first  collection,  the  amount  waived  shall be increased to
    26  account for such tax abatement benefits  so  received.    Following  the
    27  expiration of a tax abatement for alterations or improvements constitut-
    28  ing  a  major  capital  improvement for which a rent adjustment has been
    29  granted by such division, the owner may collect the full amount of annu-
    30  al rent permitted pursuant to such  rent  adjustment.  A  copy  of  such
    31  declaration  shall be filed simultaneously with the New York state divi-
    32  sion of housing and community renewal. Such declaration shall be binding
    33  upon such owner, and his or her successors and assigns.
    34    (3) The provisions of this subdivision shall not apply to  substantial
    35  rehabilitation  of buildings vacant when alterations or improvements are
    36  commenced or to buildings rehabilitated with the substantial  assistance
    37  of city, state or federal subsidies.
    38    (4) The provisions of this subdivision shall apply only to alterations
    39  and improvements commenced after its effective date.
    40    §  41.    Subparagraph  (e) of paragraph 1 of subdivision g of section
    41  26-405 of the administrative code of the city of New York, as amended by
    42  section 15 of part B of chapter 97 of the laws of 2011,  is  amended  to
    43  read as follows:
    44    (e)  The  landlord  and  tenant  by mutual voluntary written agreement
    45  agree to a substantial increase or  decrease  in  dwelling  space  or  a
    46  change  in the services, furniture, furnishings or equipment provided in
    47  the housing accommodations.  An adjustment authorized pursuant  to  this
    48  subparagraph  shall  be  collected as a monthly surcharge to the maximum
    49  rent. It shall be separately designated and billed as such and shall not
    50  be compounded by any other adjustment to the maximum rent. An adjustment
    51  under this subparagraph shall be equal to [one-fortieth, in the case  of
    52  a building with thirty-five or fewer housing accommodations, or one-six-
    53  tieth,  in  the  case  of  a building with more than thirty-five housing
    54  accommodations where such adjustment takes effect on or after  September
    55  twenty-fourth, two thousand eleven,] one eighty-fourth of the total cost
    56  incurred  by  the landlord in providing such modification or increase in

        A. 7526                            23
 
     1  dwelling space, services, furniture, furnishings or equipment, including
     2  the cost of installation, but excluding  finance  charges  and  cosmetic
     3  improvements,  provided  further that an owner who is entitled to a rent
     4  increase  pursuant  to  this  subparagraph  shall  not  be entitled to a
     5  further rent increase based upon the installation of similar  equipment,
     6  or  new  furniture  or  furnishings  within  the useful life of such new
     7  equipment, or new furniture or furnishings. The owner shall give written
     8  notice to the city rent agency of any such adjustment pursuant  to  this
     9  subparagraph; or
    10    §  42.  Subdivision  g of section 26-405 of the administrative code of
    11  the city of New York is amended by adding a new paragraph 8 to  read  as
    12  follows:
    13    (8)  (a)  Within one hundred twenty days of the effective date of this
    14  paragraph, the division of housing and community renewal shall  issue  a
    15  schedule  of  reasonable costs for upgrades and improvements that may be
    16  claimed as a basis for an adjustment of rent  pursuant  to  subparagraph
    17  (e)  of  paragraph  one of this subdivision.  The schedule of reasonable
    18  costs shall exclude cosmetic improvements.  The schedule  of  reasonable
    19  costs  shall  be  based  on  the  average  costs for similar upgrades or
    20  improvements made to  comparable  properties  located  in  each  county,
    21  subject to the provisions of this chapter, and shall be updated at least
    22  once  every  two  years.  No increase in rent shall be collectible under
    23  subparagraph (e) of paragraph one of this subdivision based  upon  costs
    24  that  exceed  the  reasonable  costs  set  forth in the schedule, unless
    25  approved by the division pursuant to subparagraph (b) of this paragraph.
    26    (b) Within thirty days of the signing of a  mutual  voluntary  written
    27  agreement  including  a  rent  increase  pursuant to subparagraph (e) of
    28  paragraph one of this subdivision that includes improvements that exceed
    29  the schedule of reasonable costs pursuant to subparagraph  (a)  of  this
    30  paragraph,  the  landlord  will  file  with  the division of housing and
    31  community renewal an explanation of how the rent was computed,  and  all
    32  documents  necessary to support the collection of such increase, includ-
    33  ing but not limited to, cancelled checks, invoices and signed  contracts
    34  contemporaneously with the improvements alleged and a statement that any
    35  increase  above  the  previous  rent  is  in accordance with adjustments
    36  permitted by law.  Upon receipt of all documents submitted by the  land-
    37  lord,  and  after giving the tenant an opportunity to respond, the divi-
    38  sion of housing and community renewal shall issue an order approving  or
    39  disapproving such increase in whole or in part.
    40    (c)  Within  thirty  days of the signing of a mutual voluntary written
    41  agreement including a rent increase that  exceeds  ten  percent  of  the
    42  maximum  collectible  rent,  the landlord will file with the division of
    43  housing and community  renewal  an  explanation  of  how  the  rent  was
    44  computed,  and all documents necessary to support the collection of such
    45  increase, including but not limited to, cancelled checks,  invoices  and
    46  signed  contracts  contemporaneously with the improvements alleged and a
    47  statement that any increase above the previous  rent  is  in  accordance
    48  with  adjustments  permitted  by  law.    Upon  receipt of all documents
    49  submitted by the owner, and after giving the tenant  an  opportunity  to
    50  respond,  the  division  of housing and community renewal shall issue an
    51  order approving or disapproving such increase in whole or in part. Based
    52  upon such determination, the division of housing and  community  renewal
    53  shall  order  a  refund  to  the tenant equal to the amount collected in
    54  excess of the rent approved by the division  of  housing  and  community
    55  renewal.

        A. 7526                            24
 
     1    (d) No increase in rent shall be collectible under subparagraph (e) of
     2  paragraph one of this subdivision until:
     3    (1)  the  landlord  has  provided  the  tenant  with a written notice,
     4  including an explanation of how the rent in the mutual voluntary written
     5  agreement has been computed, and the specific amounts  of  all  expendi-
     6  tures supporting a rent increase under subparagraph (e) of paragraph one
     7  of this subdivision; and
     8    (2)  the landlord has filed with the division of housing and community
     9  renewal an explanation of how the rent was computed, and  all  documents
    10  necessary to support the collection of such increase, including, but not
    11  limited to, cancelled checks, invoices and signed contracts entered into
    12  contemporaneously  with  the  improvements alleged, and a statement that
    13  any increase above the previous rent is in accordance  with  adjustments
    14  permitted by law.
    15    (e)  No  increase shall be collectible under subparagraph (e) of para-
    16  graph one of this subdivision where the division of housing and communi-
    17  ty renewal has determined that the owner is not maintaining  all  build-
    18  ing-wide  required services or all required services with respect to the
    19  affected housing accommodation, or where there are current or  outstand-
    20  ing  hazardous violations of any municipal, county, state or federal law
    21  which relate to the maintenance of such services.
    22    § 43. Paragraph 13 of subdivision c of section 26-511 of the  adminis-
    23  trative code of the city of New York, as amended by section 16 of part B
    24  of chapter 97 of the laws of 2011, is amended to read as follows:
    25    (13) provides that an owner is entitled to a rent increase where there
    26  has  been a substantial modification or increase of dwelling space or an
    27  increase in the services, or installation of new equipment  or  improve-
    28  ments or new furniture or furnishings provided in or to a tenant's hous-
    29  ing  accommodation,  on  written tenant consent to the rent increase. In
    30  the case of a vacant housing accommodation, tenant consent shall not  be
    31  required.
    32    (a)  An  adjustment  authorized pursuant to this subparagraph shall be
    33  collected as a monthly surcharge to the maximum rent. It shall be  sepa-
    34  rately  designated and billed as such and shall not be compounded by any
    35  other adjustment to the maximum rent.  The  permanent  increase  in  the
    36  legal  regulated  rent  for  the affected housing accommodation shall be
    37  [one-fortieth, in the case of a building with thirty-five or fewer hous-
    38  ing accommodations, or one-sixtieth, in the case of a building with more
    39  than thirty-five housing accommodations where  such  permanent  increase
    40  takes  effect on or after September twenty-fourth, two thousand eleven,]
    41  one eighty-fourth of the total cost incurred by the landlord in  provid-
    42  ing  such  modification  or increase in dwelling space, services, furni-
    43  ture, furnishings or equipment, including the cost of installation,  but
    44  excluding finance charges and cosmetic improvements.
    45    (b)  Provided further that an owner who is entitled to a rent increase
    46  pursuant to this paragraph shall not  be  entitled  to  a  further  rent
    47  increase based upon the installation of similar equipment, or new furni-
    48  ture or furnishings within the useful life of such new equipment, or new
    49  furniture or furnishings.
    50    §  44.  Subdivision  c of section 26-511 of the administrative code of
    51  the city of New York is amended by adding a new paragraph 15 to read  as
    52  follows:
    53    (15)  (a) Within one hundred twenty days of the effective date of this
    54  paragraph, the division of housing and community renewal shall  issue  a
    55  schedule  of  reasonable costs for upgrades and improvements that may be
    56  claimed as a basis for an adjustment of rent pursuant to paragraph thir-

        A. 7526                            25
 
     1  teen of this subdivision.    The  schedule  of  reasonable  costs  shall
     2  exclude  cosmetic improvements.   The schedule of reasonable costs shall
     3  be based on the average costs for similar upgrades or improvements  made
     4  to  comparable  properties  located  in  each  county,  subject  to  the
     5  provisions of this chapter, and shall be updated at least once every two
     6  years. No increase in rent shall be collectible under paragraph thirteen
     7  of this subdivision based upon costs that exceed  the  reasonable  costs
     8  set  forth  in the schedule, unless approved by the division pursuant to
     9  subparagraph (b) of this paragraph.
    10    (b) Within thirty days of the signing of a vacancy lease  including  a
    11  rent  increase  pursuant  to paragraph thirteen of this subdivision that
    12  includes improvements that  exceed  the  schedule  of  reasonable  costs
    13  pursuant  to  subparagraph (a) of this paragraph, the landlord will file
    14  with the division of housing and community renewal an explanation of how
    15  the vacancy rent was computed, and all documents  necessary  to  support
    16  the collection of such increase, including but not limited to, cancelled
    17  checks,   invoices  and  signed  contracts  contemporaneously  with  the
    18  improvements alleged and a statement that any increase above the  previ-
    19  ous  rent  is  in  accordance  with adjustments permitted by law.   Upon
    20  receipt of all documents submitted by the landlord, and after giving the
    21  tenant named in the vacancy lease an opportunity to respond,  the  divi-
    22  sion  of housing and community renewal shall issue an order approving or
    23  disapproving such increase in whole or in part.
    24    (c) Within thirty days of the signing of a vacancy lease  including  a
    25  rent increase that exceeds ten percent of the rent charged to the previ-
    26  ous  tenant,  the  landlord  will  file with the division of housing and
    27  community renewal an explanation of how the rent was computed,  and  all
    28  documents  necessary to support the collection of such increase, includ-
    29  ing but not limited to, cancelled checks, invoices and signed  contracts
    30  contemporaneously with the improvements alleged and a statement that any
    31  increase  above  the  previous  rent  is  in accordance with adjustments
    32  permitted by law. Upon receipt of all documents submitted by the  owner,
    33  and  after  giving the tenant named in such vacancy lease an opportunity
    34  to respond, the division of housing and community renewal shall issue an
    35  order approving or disapproving such increase in whole or in part. Based
    36  upon such determination, the division of housing and  community  renewal
    37  shall  order  a  refund  to  the tenant equal to the amount collected in
    38  excess of the rent approved by the division  of  housing  and  community
    39  renewal.
    40    (d)  No increase in rent shall be collectible under paragraph thirteen
    41  of this subdivision until:
    42    (i) the landlord has  provided  the  tenant  with  a  written  notice,
    43  including  an  explanation of how the rent in the vacancy lease has been
    44  computed, and the specific amounts of all expenditures supporting a rent
    45  increase under paragraph thirteen of this subdivision; and
    46    (ii) the landlord has filed with the division of housing and community
    47  renewal an explanation of how the vacancy rent  was  computed,  and  all
    48  documents  necessary to support the collection of such increase, includ-
    49  ing, but not limited to, cancelled checks, invoices and signed contracts
    50  entered into contemporaneously with  the  improvements  alleged,  and  a
    51  statement  that  any  increase  above the previous rent is in accordance
    52  with adjustments permitted by law.
    53    (e) No increase shall be collectible under paragraph thirteen of  this
    54  subdivision  where  the  division  of  housing and community renewal has
    55  determined that the owner is not maintaining all building-wide  required
    56  services  or  all required services with respect to the affected housing

        A. 7526                            26
 
     1  accommodation, or where  there  are  current  or  outstanding  hazardous
     2  violations  of  any municipal, county, state or federal law which relate
     3  to the maintenance of such services.
     4    §  45. Paragraph 1 of subdivision d of section 6 of section 4 of chap-
     5  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
     6  protection  act  of  nineteen  seventy-four, as amended by section 18 of
     7  part B of chapter 97 of the laws of 2011, is amended to read as follows:
     8    (1) there has been a substantial modification or increase of  dwelling
     9  space  or  an increase in the services, or installation of new equipment
    10  or improvements or new furniture or furnishings, provided  in  or  to  a
    11  tenant's  housing  accommodation,  on written tenant consent to the rent
    12  increase. In the case of a vacant housing accommodation, tenant  consent
    13  shall not be required.
    14    (a)  An  adjustment  authorized pursuant to this subparagraph shall be
    15  collected as a monthly surcharge to the maximum rent. It shall be  sepa-
    16  rately  designated and billed as such and shall not be compounded by any
    17  other adjustment to the maximum rent.  The  permanent  increase  in  the
    18  legal  regulated  rent  for  the affected housing accommodation shall be
    19  [one-fortieth, in the case of a building with thirty-five or fewer hous-
    20  ing accommodations, or one-sixtieth, in the case of a building with more
    21  than thirty-five housing accommodations where  such  permanent  increase
    22  takes  effect on or after September twenty-fourth, two thousand eleven,]
    23  one eighty-fourth of the total cost incurred by the landlord in  provid-
    24  ing  such  modification  or increase in dwelling space, services, furni-
    25  ture, furnishings or equipment, including the cost of installation,  but
    26  excluding finance charges and cosmetic improvements.
    27    (b)  Provided further that an owner who is entitled to a rent increase
    28  pursuant to this paragraph shall not  be  entitled  to  a  further  rent
    29  increase based upon the installation of similar equipment, or new furni-
    30  ture or furnishings within the useful life of such new equipment, or new
    31  furniture or furnishings.
    32    (c) The owner shall give written notice to the division of housing and
    33  community  renewal  and  the  tenant  named  in a vacancy lease on forms
    34  prescribed by the division of any such adjustment pursuant to this para-
    35  graph and the failure to provide such written notice as provided  herein
    36  shall  preclude  the collection of any such adjustment. Such notice must
    37  include a detailed breakdown of the nature and cost of any  improvements
    38  underlying an increase in rent under this paragraph and a statement that
    39  any  increase  above the previous rent is in accordance with adjustments
    40  permitted by law. The owner shall file with the division of housing  and
    41  community  renewal  all documents necessary to support the collection of
    42  such increase, including, but not limited to, cancelled checks, invoices
    43  and signed contracts entered into contemporaneously  with  the  improve-
    44  ments alleged.
    45    §  46.  Subdivision  d of section 6 of section 4 of chapter 576 of the
    46  laws of 1974, constituting the emergency tenant protection act of  nine-
    47  teen  seventy-four,  is  amended  by adding a new paragraph 6 to read as
    48  follows:
    49    (6) (a) Within one hundred twenty days of the effective date  of  this
    50  paragraph,  the  division of housing and community renewal shall issue a
    51  schedule of reasonable costs for upgrades and improvements that  may  be
    52  claimed  as  a basis for an adjustment of rent pursuant to paragraph one
    53  of this subdivision. The schedule  of  reasonable  costs  shall  exclude
    54  cosmetic  improvements.  The schedule of reasonable costs shall be based
    55  on the average costs for similar upgrades or improvements made to compa-
    56  rable properties located in each county, subject to  the  provisions  of

        A. 7526                            27
 
     1  this  act,  and  shall  be  updated  at  least  once every two years. No
     2  increase in rent shall be collectible under paragraph one of this subdi-
     3  vision based upon costs that exceed the reasonable costs  set  forth  in
     4  the  schedule,  unless approved by the division pursuant to subparagraph
     5  (b) of this paragraph.
     6    (b) Within thirty days of the signing of a vacancy lease  including  a
     7  rent  increase  pursuant  to  paragraph  one  of  this  subdivision that
     8  includes improvements that  exceed  the  schedule  of  reasonable  costs
     9  pursuant  to  subparagraph (a) of this paragraph, the landlord will file
    10  with the division of housing and community renewal an explanation of how
    11  the vacancy rent was computed, and all documents  necessary  to  support
    12  the collection of such increase, including but not limited to, cancelled
    13  checks,   invoices  and  signed  contracts  contemporaneously  with  the
    14  improvements alleged and a statement that any increase above the  previ-
    15  ous  rent  is  in  accordance  with  adjustments  permitted by law. Upon
    16  receipt of all documents submitted by the landlord, and after giving the
    17  tenant named in the vacancy lease an opportunity to respond,  the  divi-
    18  sion  of housing and community renewal shall issue an order approving or
    19  disapproving such increase in whole or in part.
    20    (c) Within thirty days of the signing of a vacancy lease  including  a
    21  rent increase that exceeds ten percent of the rent charged to the previ-
    22  ous  tenant,  the  landlord  will  file with the division of housing and
    23  community renewal an explanation of how the rent was computed,  and  all
    24  documents  necessary to support the collection of such increase, includ-
    25  ing but not limited to, cancelled checks, invoices and signed  contracts
    26  contemporaneously with the improvements alleged and a statement that any
    27  increase  above  the  previous  rent  is  in accordance with adjustments
    28  permitted by law. Upon receipt of all documents submitted by the  owner,
    29  and  after  giving the tenant named in such vacancy lease an opportunity
    30  to respond, the division of housing and community renewal shall issue an
    31  order approving or disapproving such increase in whole or in part. Based
    32  upon such determination, the division of housing and  community  renewal
    33  shall  order  a  refund  to  the tenant equal to the amount collected in
    34  excess of the rent approved by the division  of  housing  and  community
    35  renewal.
    36    (d)  No  increase  shall  be  collectible  under paragraph one of this
    37  subdivision where the division of  housing  and  community  renewal  has
    38  determined  that the owner is not maintaining all building-wide required
    39  services or all required services with respect to the  affected  housing
    40  accommodation,  or  where  there  are  current  or outstanding hazardous
    41  violations of any municipal, county, state or federal law  which  relate
    42  to the maintenance of such services.
    43    § 47. Paragraph 6-a of subdivision c of section 26-511 of the adminis-
    44  trative code of the city of New York is amended to read as follows:
    45    (6-a)  provides  criteria  whereby  as  an alternative to the hardship
    46  application provided under paragraph six of this subdivision  owners  of
    47  buildings  acquired  by  the same owner or a related entity owned by the
    48  same principals [three] six years prior to the date of  application  may
    49  apply to the division for increases in excess of the level of applicable
    50  guideline increases established under this law based on a finding by the
    51  commissioner  that such guideline increases are not sufficient to enable
    52  the owner to maintain an annual gross  rent  income  for  such  building
    53  which  exceeds  the  annual operating expenses of such building by a sum
    54  equal to at least five percent of such gross rent. For the  purposes  of
    55  this  paragraph, operating expenses shall consist of the actual, reason-
    56  able, costs of fuel, labor,  utilities,  taxes,  other  than  income  or

        A. 7526                            28
 
     1  corporate  franchise taxes, fees, permits, necessary contracted services
     2  and non-capital repairs, insurance, parts and supplies, management  fees
     3  and  other  administrative costs and mortgage interest. For the purposes
     4  of this paragraph, mortgage interest shall be deemed to mean interest on
     5  a  bona  fide mortgage including an allocable portion of charges related
     6  thereto. Criteria to be considered in determining a bona  fide  mortgage
     7  other  than  an  institutional  mortgage shall include; condition of the
     8  property, location of the property, the existing mortgage market at  the
     9  time  the mortgage is placed, the term of the mortgage, the amortization
    10  rate, the principal amount of the mortgage, security and other terms and
    11  conditions of the mortgage. The commissioner shall set  a  rental  value
    12  for  any  unit occupied by the owner or a person related to the owner or
    13  unoccupied at the owner's choice for more than one  month  at  the  last
    14  regulated rent plus the minimum number of guidelines increases or, if no
    15  such regulated rent existed or is known, the commissioner shall impute a
    16  rent consistent with other rents in the building. The amount of hardship
    17  increase  shall  be such as may be required to maintain the annual gross
    18  rent income as provided by this paragraph. The division shall not  grant
    19  a  hardship  application  under  this paragraph or paragraph six of this
    20  subdivision for a period of three years subsequent to granting  a  hard-
    21  ship  application under the provisions of this paragraph. The collection
    22  of any increase in the rent for any housing  accommodation  pursuant  to
    23  this  paragraph shall not exceed six percent in any year from the effec-
    24  tive date of the order granting the increase over the rent set forth  in
    25  the  schedule  of  gross rents, with collectability of any dollar excess
    26  above said sum to be spread forward in similar increments and  added  to
    27  the  rent as established or set in future years. No application shall be
    28  approved unless the owner's equity in such building exceeds five percent
    29  of: (i) the arms length purchase price of the property; (ii) the cost of
    30  any capital improvements  for  which  the  owner  has  not  collected  a
    31  surcharge; (iii) any repayment of principal of any mortgage or loan used
    32  to  finance the purchase of the property or any capital improvements for
    33  which the owner has not collected a surcharge and (iv) any  increase  in
    34  the  equalized  assessed value of the property which occurred subsequent
    35  to the first valuation of the property after purchase by the owner.  For
    36  the purposes of this paragraph, owner's equity shall mean the sum of (i)
    37  the purchase price of the property less the principal of any mortgage or
    38  loan  used to finance the purchase of the property, (ii) the cost of any
    39  capital improvement for which the owner has not  collected  a  surcharge
    40  less the principal of any mortgage or loan used to finance said improve-
    41  ment,  (iii) any repayment of the principal of any mortgage or loan used
    42  to finance the purchase of the property or any capital  improvement  for
    43  which  the owner has not collected a surcharge, and (iv) any increase in
    44  the equalized assessed value of the property which  occurred  subsequent
    45  to the first valuation of the property after purchase by the owner.
    46    §  48. Paragraph 5 of subdivision d of section 6 of section 4 of chap-
    47  ter 576 of the laws of 1974 enacting the emergency tenant protection act
    48  of nineteen seventy-four, as amended by chapter 102 of the laws of 1984,
    49  is amended to read as follows:
    50    (5) as an alternative to the hardship application provided under para-
    51  graph four of this subdivision, owners of buildings acquired by the same
    52  owner or a related entity owned by the same principals [three] six years
    53  prior to the date of application may apply to the division for increases
    54  in excess of the level of  applicable  guideline  increases  established
    55  under  this  law based on a finding by the commissioner that such guide-
    56  line increases are not sufficient to enable the  owner  to  maintain  an

        A. 7526                            29
 
     1  annual  gross  rent  income  for  such building which exceeds the annual
     2  operating expenses of such building by a sum  equal  to  at  least  five
     3  percent  of such gross rent. For the purposes of this paragraph, operat-
     4  ing  expenses  shall  consist  of the actual, reasonable, costs of fuel,
     5  labor, utilities, taxes, other than income or corporate franchise taxes,
     6  fees, permits, necessary contracted services  and  non-capital  repairs,
     7  insurance,  parts and supplies, management fees and other administrative
     8  costs and mortgage interest. For the purposes of this  paragraph,  mort-
     9  gage  interest  shall be deemed to mean interest on a bona fide mortgage
    10  including an allocable portion of charges related thereto.  Criteria  to
    11  be considered in determining a bona fide mortgage other than an institu-
    12  tional  mortgage  shall  include; condition of the property, location of
    13  the property, the existing mortgage market at the time the  mortgage  is
    14  placed,  the  term of the mortgage, the amortization rate, the principal
    15  amount of the mortgage, security and other terms and conditions  of  the
    16  mortgage.  The  commissioner shall set a rental value for any unit occu-
    17  pied by the owner or a person related to the owner or unoccupied at  the
    18  owner's  choice  for more than one month at the last regulated rent plus
    19  the minimum number of guidelines increases or, if no such regulated rent
    20  existed or is known, the commissioner shall  impute  a  rent  consistent
    21  with  other rents in the building. The amount of hardship increase shall
    22  be such as may be required to maintain the annual gross rent  income  as
    23  provided  by  this  paragraph.  The  division shall not grant a hardship
    24  application under this paragraph or paragraph four of  this  subdivision
    25  for  a  period of three years subsequent to granting a hardship applica-
    26  tion under the provisions of  this  paragraph.  The  collection  of  any
    27  increase  in  the  rent  for  any housing accommodation pursuant to this
    28  paragraph shall not exceed six percent in any year  from  the  effective
    29  date  of  the order granting the increase over the rent set forth in the
    30  schedule of gross rents, with collectability of any dollar excess  above
    31  said  sum  to  be  spread forward in similar increments and added to the
    32  rent as established or set in future  years.  No  application  shall  be
    33  approved unless the owner's equity in such building exceeds five percent
    34  of: (i) the arms length purchase price of the property; (ii) the cost of
    35  any  capital  improvements  for  which  the  owner  has  not collected a
    36  surcharge; (iii) any repayment of principal of any mortgage or loan used
    37  to finance the purchase of the property or any capital improvements  for
    38  which  the owner has not collected a surcharge; and (iv) any increase in
    39  the equalized assessed value of the property which  occurred  subsequent
    40  to  the first valuation of the property after purchase by the owner. For
    41  the purposes of this paragraph, owner's equity shall mean the sum of (i)
    42  the purchase price of the property less the principal of any mortgage or
    43  loan used to finance the purchase of the property, (ii) the cost of  any
    44  capital  improvement  for  which the owner has not collected a surcharge
    45  less the principal of any mortgage or loan used to finance said improve-
    46  ment, (iii) any repayment of the principal of any mortgage or loan  used
    47  to  finance  the purchase of the property or any capital improvement for
    48  which the owner has not collected a surcharge, and (iv) any increase  in
    49  the  equalized  assessed value of the property which occurred subsequent
    50  to the first valuation of the property after purchase by the owner.
    51    § 49. Section 5 of section 4 of chapter  576  of  the  laws  of  1974,
    52  constituting  the  emergency  tenant protection act of nineteen seventy-
    53  four, is amended by adding a new subdivision d to read as follows:
    54    d. Notwithstanding the provisions of paragraph three or five of subdi-
    55  vision a of this section but subject to any other applicable  exceptions
    56  in  such subdivision, rental housing accommodations located in buildings

        A. 7526                            30
 
     1  which were owned by a company established under article 2 of the private
     2  housing finance law, other  than  a  mutual  company,  that  voluntarily
     3  dissolved  pursuant  to section 35 of such law shall be fully subject to
     4  the  provisions  of this act.  The provision of subdivision a of section
     5  nine of this act shall not apply  to  any  housing  accommodation  which
     6  became subject to this act pursuant to this subdivision.
     7    §  50.  Paragraph 2 of subdivision a of section 26-516 of the adminis-
     8  trative code of the city of New  York  is  amended  by  adding  two  new
     9  subparagraphs (iii) and (iv) to read as follows:
    10    (iii)  Failure  of  an  owner to comply with an order issued under the
    11  provisions of this title shall constitute a continuing violation  to  be
    12  included in the rental history of the housing accommodation irrespective
    13  of  whether  such  violation  occurred  outside  of the four year period
    14  preceding the filing of such complaint and provided further, that  fail-
    15  ure  to  comply with an order issued under this article shall be imputed
    16  to any successor in interest of the housing accommodation, provided such
    17  person or  persons  has  actual  notice  of  such  violation.  (iv)  Any
    18  complaint  based  on  fraud  shall  be reviewed by the state division of
    19  housing  and  community  renewal  irrespective  of  whether  such  fraud
    20  occurred  outside  of  the four year period preceding the filing of such
    21  complaint.
    22    § 51. Subdivision a of section 12 of section 4 of chapter 576  of  the
    23  laws  of  1974 constituting the emergency tenant protection act of nine-
    24  teen seventy-four is amended by adding two new paragraphs 9 and  10,  to
    25  read as follows:
    26    (9)  Failure  of  an  owner  to  comply with an order issued under the
    27  provisions of this title shall constitute a continuing violation  to  be
    28  included in the rental history of the housing accommodation irrespective
    29  of  whether  such  violation  occurred  outside  of the four year period
    30  preceding the filing of such complaint and provided further, that  fail-
    31  ure  to  comply with an order issued under this article shall be imputed
    32  to any successor in interest of the housing accommodation, provided such
    33  person or persons has actual notice of such violation.
    34    (10) Any complaint based on fraud shall be reviewed by the state divi-
    35  sion of housing and community renewal irrespective of whether such fraud
    36  occurred outside of the four year period preceding the  filing  of  such
    37  complaint.
    38    §  52.  Subdivision  a of section 26-516 of the administrative code of
    39  the city of New York is amended by adding a new clause (iii) to read  as
    40  follows:
    41    (iii)  Notwithstanding the provisions of clause (i) of this paragraph,
    42  for any year in which an owner or a landlord who is required to file  an
    43  annual rent registration statement, has failed to timely file such annu-
    44  al  rent  registration  statement,  the division or a court of competent
    45  jurisdiction shall consider such year  or  years  when  determining  the
    46  current legal regulated rent.
    47    §  53.  Section  26-512  of the administrative code of the city of New
    48  York is amended by adding a new subdivision g to read as follows:
    49    g. Upon the offering of a lease to a prospective tenant, an owner or a
    50  landlord shall be required to provide such tenant  with  the  documenta-
    51  tion,  the scope of which shall be determined by the division of housing
    52  and community renewal, used by such owner or  landlord  to  support  any
    53  allowable increases in the legal regulated rent during the previous four
    54  years.
    55    § 54. Paragraph 1 of subdivision a of section 12 of section 4 of chap-
    56  ter 576 of the laws of 1974 constituting the emergency tenant protection

        A. 7526                            31
 
     1  act  of nineteen seventy-four is amended by adding a new clause (iii) to
     2  read as follows:
     3    (iii)  Notwithstanding the provisions of clause (i) of this paragraph,
     4  for any year in which an owner or a landlord who is required to file  an
     5  annual rent registration statement, has failed to timely file such annu-
     6  al  rent  registration  statement,  the division or a court of competent
     7  jurisdiction shall consider such year  or  years  when  determining  the
     8  current legal regulated rent.
     9    §  55.  Section  6  of  section  4  of chapter 576 of the laws of 1974
    10  constituting the emergency tenant protection act  of  nineteen  seventy-
    11  four is amended by adding a new subdivision h to read as follows:
    12    h. Upon the offering of a lease to a prospective tenant, an owner or a
    13  landlord  shall  be  required to provide such tenant with the documenta-
    14  tion, the scope of which shall be determined by the division of  housing
    15  and  community  renewal,  used  by such owner or landlord to support any
    16  allowable increases in the legal regulated rent during the previous four
    17  years.
    18    § 56. Section 213-a of the civil practice law and rules, as amended by
    19  chapter 116 of the laws of 1997, is amended to read as follows:
    20    § 213-a. Actions to be commenced within four years;  residential  rent
    21  overcharge.  An  action  on  a  residential  rent  overcharge  shall  be
    22  commenced within four years of  the  first  overcharge  alleged  and  no
    23  determination  of  an overcharge and no award or calculation of an award
    24  of the amount of any overcharge may be based upon an  overcharge  having
    25  occurred  more  than  four  years  before  the action is commenced. This
    26  section shall preclude examination of the rental history of the  housing
    27  accommodation  prior  to  the four-year period immediately preceding the
    28  commencement of the action; provided however, for any year in  which  an
    29  owner  or a landlord who is required to file an annual rent registration
    30  statement, has failed to  timely  file  such  annual  rent  registration
    31  statement, a court of competent jurisdiction shall consider such year or
    32  years when determining the current legal regulated rent.
    33    §  57. Section 241.05 of the penal law, as added by chapter 116 of the
    34  laws of 1997, is amended to read as follows:
    35  § 241.05 Harassment of a rent regulated tenant in the first degree.
    36    An owner is guilty of harassment of a rent  regulated  tenant  in  the
    37  first degree when with intent to cause a rent regulated tenant to vacate
    38  a housing accommodation, such owner:
    39    1.  With  intent  to cause physical injury to such tenant, causes such
    40  injury to such tenant or to a third person; or
    41    2. Recklessly causes physical injury to such  tenant  or  to  a  third
    42  person.
    43    Harassment of a rent regulated tenant in the first degree is a class E
    44  felony.
    45    §  58. The penal law is amended by adding a new section 241.03 to read
    46  as follows:
    47  § 241.03 Harassment of a rent regulated tenant in the second degree.
    48    An owner is guilty of harassment of a rent  regulated  tenant  in  the
    49  second  degree when, with the intent to cause a rent regulated tenant to
    50  vacate a housing accommodation, such  owner  intentionally  impairs  the
    51  habitability  of  a  housing  accommodation,  or  creates or maintains a
    52  condition, which endangers  the  safety  or  health  of  the  dwelling's
    53  tenant.
    54    Harassment  of a rent regulated tenant in the second degree is a class
    55  A misdemeanor.

        A. 7526                            32
 
     1    § 59. Paragraph 5 of subdivision a of section 26-405 of  the  adminis-
     2  trative code of the city of New York is amended to read as follows:
     3    (5)  Where  a  maximum rent established pursuant to this chapter on or
     4  after January first, nineteen hundred seventy-two, is  higher  than  the
     5  previously  existing  maximum  rent,  the  landlord  may  not collect an
     6  increase from a tenant in occupancy in any one year period of more  than
     7  the  lesser  of  either  seven  and  one-half percentum [increase from a
     8  tenant in occupancy on such date in any one year period, provided howev-
     9  er, that where] or an average of the previous  five  years  of  one-year
    10  rent  increases on rent stabilized apartments as established by the rent
    11  guidelines board, pursuant to subdivision b of section  26-510  of  this
    12  title. If the period for which the rent is established exceeds one year,
    13  regardless  of  how the collection thereof is averaged over such period,
    14  the rent the landlord shall be entitled  to  receive  during  the  first
    15  twelve  months  shall not be increased by more than the lesser of either
    16  seven and one-half percentum or an average of the previous five years of
    17  one-year rent increases on rent stabilized apartments as established  by
    18  the  rent  guidelines board, pursuant to subdivision b of section 26-510
    19  of this title, over the previous rent [and]. Any additional annual rents
    20  shall not exceed the lesser of either seven and one-half percentum or an
    21  average of the previous five years of one-year rent  increases  on  rent
    22  stabilized  apartments  as  established  by  the  rent guidelines board,
    23  pursuant to subdivision b of section 26-510 of this title, of  the  rent
    24  paid  during  the  previous  year.  Notwithstanding any of the foregoing
    25  limitations in this paragraph five, maximum rent shall be  increased  if
    26  ordered by the agency pursuant to subparagraphs (d), (e), (f), (g), (h),
    27  (i),  (k),  [(l),]  or (m) [or (n)] of paragraph one of subdivision g of
    28  this section. [Commencing January first, nineteen hundred  eighty,  rent
    29  adjustments pursuant to subparagraph (n) of paragraph one of subdivision
    30  g of this section shall be excluded from the maximum rent when computing
    31  the  seven  and one-half percentum increase authorized by this paragraph
    32  five.] Where a housing accommodation is vacant on January  first,  nine-
    33  teen  hundred  seventy-two,  or  becomes  vacant thereafter by voluntary
    34  surrender of possession by the tenants, the maximum rent established for
    35  such accommodations may be collected.
    36    § 60. Subparagraphs (l) and (n) of paragraph 1  of  subdivision  g  of
    37  section  26-405  of  the administrative code of the city of New York are
    38  REPEALED.
    39    § 61. Section 4 of chapter 274 of the laws of 1946,  constituting  the
    40  emergency  housing rent control law, is amended by adding a new subdivi-
    41  sion 9 to read as follows:
    42    9. No annual rent increase  authorized  pursuant  to  this  act  shall
    43  exceed  the average of the previous five annual rental increases author-
    44  ized by a rent guidelines board for a rent stabilized unit  pursuant  to
    45  section  4  of  the emergency tenant protection act of nineteen seventy-
    46  four.
    47    § 62. Section 235-e of the real property law, as  amended  by  chapter
    48  848 of the laws of 1986, is amended to read as follows:
    49    § 235-e. Duty [of landlord] to provide a written receipt. (a) Upon the
    50  receipt  of  the payment of rent for residential premises in the form of
    51  cash, or any instrument other than the personal check  of  the  [tenant]
    52  lessee,  it  shall be the duty of the [landlord] lessor, or any agent of
    53  the lessor authorized to receive rent, to  provide  the  [payor]  lessee
    54  with a written receipt containing the following:
    55    1. The date;
    56    2. The amount;

        A. 7526                            33
 
     1    3. The identity of the premises and period for which paid; and
     2    4. The signature and title of the person receiving the rent.
     3    (b) [Where a tenant] A lessee may request, in writing, [requests] that
     4  a  [landlord] lessor provide a receipt for rent paid by personal check[,
     5  it shall be the duty of]. If such request is  made,  the  [landlord  to]
     6  lessor,  or  any  agent  of the lessor authorized to receive rent, shall
     7  provide the [payor] lessee with the receipt described in subdivision (a)
     8  of this section [for each such request made in writing].   Such  request
     9  shall,  unless  otherwise  specified by the lessee, remain in effect for
    10  the duration of such lessee's tenancy.
    11    (c) If a payment of rent is personally transmitted to a lessor, or  an
    12  agent  of  a  lessor  authorized  to  receive rent, the receipt for such
    13  payment shall be issued immediately to a lessee. If a payment of rent is
    14  transmitted indirectly to a lessor, or an agent of a  lessor  authorized
    15  to  receive  rent,  a lessee shall be provided with a receipt within ten
    16  business days of such lessor or agent's receipt of a rent payment.
    17    (d) If a lessor, or an agent of a lessor authorized to  receive  rent,
    18  fails  to  receive payment for rent within ten business days of the date
    19  specified in a lease agreement, such lessor  or  agent  shall  send,  by
    20  certified  mail, within two business days thereafter, a lessee a written
    21  notice stating the failure to receive such rent payment. The failure  of
    22  a  lessor,  or  any  agent  of the lessor authorized to receive rent, to
    23  provide a lessee with a written notice of the non-payment of rent may be
    24  used as an affirmative defense by such lessee in an eviction  proceeding
    25  based on the non-payment of rent.
    26    §  63. Section 282-a of the multiple dwelling law, as amended by chap-
    27  ter 159 of the laws of 2011, is amended to read as follows:
    28    § 282-a. [Limitation on applications]  Applications  for  coverage  of
    29  interim  multiple  dwellings and residential units. [1. All applications
    30  for registration as an interim multiple  dwelling  or  for  coverage  of
    31  residential  units under this article shall be filed with the loft board
    32  within six months after the date the loft board shall have  adopted  all
    33  rules  or  regulations necessary in order to implement the provisions of
    34  chapter one hundred forty-seven of the laws of  two  thousand  ten.  The
    35  loft  board  may  subsequently amend such rules and regulations but such
    36  amendments shall not recommence the time period  in  which  applications
    37  may  be  filed.    Notwithstanding  any other provision of this article,
    38  after such date no further applications for registration or coverage  as
    39  an interim multiple dwelling or for coverage under this article shall be
    40  accepted for owners or occupants of buildings that would otherwise qual-
    41  ify as interim multiple dwellings or for coverage pursuant to this arti-
    42  cle.
    43    2.]  Where any occupant has filed an application for coverage pursuant
    44  to this article and has received a docket number from the loft board, it
    45  shall be unlawful for an owner to cause or intend to cause such occupant
    46  to vacate, surrender or waive any rights in relation to such  occupancy,
    47  due  to repeated interruptions or discontinuances of essential services,
    48  or an interruption or discontinuance of  an  essential  service  for  an
    49  extended  duration  or  of  such significance as to substantially impair
    50  habitability of such unit, at any time before the loft board has made  a
    51  final determination, including appeals, to approve or deny such applica-
    52  tion. This [subdivision] section shall not grant any rights of continued
    53  occupancy  other than those otherwise granted by law. Any agreement that
    54  waives or limits the benefits of this  [subdivision]  section  shall  be
    55  deemed  void as against public policy. In addition to any other remedies
    56  provided in this article for failure to be  in  compliance,  in  article

        A. 7526                            34
 
     1  eight  of  this  chapter,  or in the regulations promulgated by the loft
     2  board, an occupant who has filed an application with the loft board  for
     3  coverage  under this article may[, no later than thirty-six months after
     4  the  loft board shall have adopted rules and regulations as set forth in
     5  subdivision one of this section,] commence an action or proceeding in  a
     6  court   of  competent  jurisdiction,  which  notwithstanding  any  other
     7  provision of law shall include the housing part of  the  New  York  city
     8  civil court, to enforce the provisions of this [subdivision] section.
     9    §  64.  Paragraph (vi) of subdivision 1 of section 284 of the multiple
    10  dwelling law, as amended by chapter 4 of the laws of 2013, is amended to
    11  read as follows:
    12    (vi) Notwithstanding the provisions of paragraphs (i) through  (v)  of
    13  this  subdivision the owner of an interim multiple dwelling made subject
    14  to this article by subdivision five of section two hundred eighty-one of
    15  this article (A) shall  file  an  alteration  application  [within  nine
    16  months  from  the effective date of the chapter of the laws of two thou-
    17  sand ten which amended this subparagraph] on  or  before  March  twenty-
    18  first,  two  thousand  eleven, or, for units that became subject to this
    19  article pursuant to the chapter of the laws  of  two  thousand  thirteen
    20  which amended this paragraph, [within nine months of the promulgation of
    21  all  necessary  rules  and  regulations  pursuant to section two hundred
    22  eighty-two-a of this article]on or before June  eleventh,  two  thousand
    23  fourteen, or, for units in an interim multiple dwelling that were listed
    24  on an application for coverage or registration filed with the loft board
    25  pursuant  to  this  article or in a court pleading after March eleventh,
    26  two thousand fourteen, within nine months of  either  the  date  of  the
    27  initial  application  for coverage or the date of the loft board's issu-
    28  ance of an interim multiple dwelling number or the date of  the  service
    29  of the pleading, whichever is earlier, and (B) shall take all reasonable
    30  and  necessary  action  to  obtain an approved alteration permit [within
    31  twelve months from such effective date] on or before June  twenty-first,
    32  two  thousand  eleven, or, for units that became subject to this article
    33  pursuant to the chapter of the  laws  of  two  thousand  thirteen  which
    34  amended this paragraph, [within twelve months of the promulgation of all
    35  necessary  rules and regulations pursuant to section two hundred eighty-
    36  two-a of this article] on or before  September  eleventh,  two  thousand
    37  fourteen, or, for units in an interim multiple dwelling that were listed
    38  on an application for coverage or registration filed with the loft board
    39  pursuant  to  this  article or in a court pleading after March eleventh,
    40  two thousand fourteen, within twelve months of either the  date  of  the
    41  initial  application  for coverage or the date of the loft board's issu-
    42  ance of an interim multiple dwelling number or the date of  the  service
    43  of  the pleading, whichever is earlier, and (C) shall achieve compliance
    44  with the standards of safety and fire protection set  forth  in  article
    45  seven-B  of  this  chapter  for the residential portions of the building
    46  within eighteen months from obtaining such alteration  permit,  and  (D)
    47  shall  take  all reasonable and necessary action to obtain a certificate
    48  of occupancy as a class A multiple dwelling for the residential portions
    49  of the building or structure [within thirty months from  such  effective
    50  date]  on  or  before December twenty-first, two thousand twelve, or for
    51  units that became subject to this article pursuant to the chapter of the
    52  laws of two thousand thirteen which amended this paragraph [within thir-
    53  ty months of the promulgation of all  necessary  rules  and  regulations
    54  pursuant  to  section  two  hundred  eighty-two-a of this article] on or
    55  before March eleventh, two thousand sixteen, or, for units in an interim
    56  multiple dwelling that were listed on an  application  for  coverage  or

        A. 7526                            35
 
     1  registration  filed with the loft board pursuant to this article or in a
     2  court pleading after March eleventh, two thousand fourteen, within thir-
     3  ty months of either the date of the initial application for coverage  or
     4  the  date  of  the loft board's issuance of an interim multiple dwelling
     5  number or the date of the service of the pleading, whichever is earlier.
     6  The loft board may, upon good cause shown, and upon proof of  compliance
     7  with  the  standards  of safety and fire protection set forth in article
     8  seven-B of this chapter, twice extend the time of  compliance  with  the
     9  requirement to obtain a residential certificate of occupancy for periods
    10  not to exceed twelve months each.
    11    §  65.  Subdivision (h) of section 27 of chapter 4 of the laws of 2013
    12  amending the real property tax law relating to exemption  from  taxation
    13  to  alterations and improvements to multiple dwellings to eliminate fire
    14  and health hazards is REPEALED.
    15    § 66. The civil practice law and rules is  amended  by  adding  a  new
    16  section 3012-c to read as follows:
    17    §  3012-c. Prerequisites; certificate of merit in an eviction proceed-
    18  ing or an action to deregulate  a  rent-regulated  unit.    (a)  In  any
    19  eviction  proceeding  premised  upon  any  ground established by article
    20  seven of the real property actions  and  proceedings  law;  or,  in  any
    21  action  to deregulate a unit that is regulated pursuant to the emergency
    22  housing rent control law of nineteen hundred forty-six, the local  emer-
    23  gency  housing rent control act of nineteen hundred sixty-two, the emer-
    24  gency tenant protection act of nineteen seventy-four, or the administra-
    25  tive code of the city of New York, the complaint shall be accompanied by
    26  a certificate of merit. Such certificate shall be signed by an  attorney
    27  for  the  plaintiff, or, where the plaintiff is not represented by coun-
    28  sel, by the plaintiff, and shall certify that such attorney or plaintiff
    29  has:
    30    1. reviewed the facts underlying the proceeding or action brought;
    31    2. consulted with the plaintiff, or a representative of the plaintiff,
    32  concerning the proceeding or action brought;
    33    3. reviewed documents pertinent to the proceeding or  action  brought,
    34  including, where applicable, the annual rent registration statement;
    35    4.  reviewed  plaintiff's,  or  a  representative  of the plaintiff's,
    36  attempts to, based upon an implied or expressed covenant of fair dealing
    37  in good faith with the tenant, correspond, negotiate, or  resolve  lease
    38  or tenancy issues, and/or accept payment under the terms of a lease; and
    39    5.  determined  that,  to  the  best of such attorney's or plaintiff's
    40  knowledge, based upon reasonable inquiries made in due diligence,  there
    41  is  a  reasonable basis for the commencement of the action, and that the
    42  plaintiff is entitled to bring the proceeding or action.
    43    (b) A copy of the written lease between the plaintiff  and  defendant;
    44  if  an oral lease, documentation establishing defendant's tenancy; where
    45  applicable, the annual rent registration  statement;  and/or  any  other
    46  documentation supporting the action shall be attached to the certificate
    47  of merit.
    48    (c)  If  a  plaintiff willfully fails to provide a copy of the written
    49  lease between the plaintiff and defendant; if an oral lease,  documenta-
    50  tion establishing defendant's tenancy; where applicable, the annual rent
    51  registration  statement;  and/or  any other documentation supporting the
    52  action, as required by subdivision (b) of this section,  and  the  court
    53  finds,  upon  the  motion of any party or on its own motion on notice to
    54  the parties, that such papers and/or documents were  not  provided,  the
    55  court  shall  dismiss  the  complaint  or make such final or conditional

        A. 7526                            36
 
     1  order with regard to such failure, as is just. Any such dismissal  shall
     2  be without prejudice and shall not be on the merits.
     3    § 67. This act shall take effect immediately; provided, however, that:
     4    (a) the amendments to chapter 4 of title 26 of the administrative code
     5  of the city of New York made by sections eight, nine, ten, twenty, twen-
     6  ty-five,  twenty-seven,  thirty,  thirty-two,  thirty-six, thirty-seven,
     7  forty-three, forty-four, forty-seven, fifty, fifty-two, and  fifty-three
     8  of  this  act  shall expire on the same date as such chapter expires and
     9  shall not affect the  expiration  of  such  chapter  as  provided  under
    10  section 26-520 of such law;
    11    (b)  the amendments to the emergency tenant protection act of nineteen
    12  seventy-four made by sections  seven,  thirteen,  fourteen,  twenty-one,
    13  twenty-two,   twenty-eight,   thirty-one,   thirty-three,  thirty-eight,
    14  forty-five, forty-six, forty-eight, forty-nine,  fifty-one,  fifty-four,
    15  and  fifty-five  of  this  act shall expire on the same date as such act
    16  expires and shall not affect the expiration of such act as  provided  in
    17  section 17 of chapter 576 of the laws of 1974;
    18    (c)  the  amendments to the emergency housing rent control law made by
    19  sections twenty-three, twenty-nine, thirty-nine and  sixty-one  of  this
    20  act  shall  expire  on  the  same date as such law expires and shall not
    21  affect the expiration of such  law  as  provided  in  subdivision  2  of
    22  section 1 of chapter 274 of the laws of 1946;
    23    (d) the amendments to chapter 3 of title 26 of the administrative code
    24  of  the  city  of New York made by sections eleven, twelve, twenty-four,
    25  twenty-six, thirty-four, thirty-five, forty-one,  forty-two  and  fifty-
    26  nine  of  this act shall remain in full force and effect only as long as
    27  the public emergency requiring the regulation and control of residential
    28  rents and evictions continues, as provided in subdivision 3 of section 1
    29  of the local emergency housing rent control act;
    30    (e) the amendments to paragraph 2 of subdivision c of  section  26-516
    31  of  the administrative code of the city of New York made by section nine
    32  of this act shall be subject to the expiration  and  reversion  of  such
    33  subdivision  pursuant  to section 46 of chapter 116 of the laws of 1997,
    34  as amended, when upon such date the provisions of section  ten  of  this
    35  act shall take effect;
    36    (f)  the amendment to subparagraph (a) of paragraph 2 of subdivision b
    37  of section 26-413 of the administrative code of the  city  of  New  York
    38  made  by  section  eleven of this act shall be subject to the expiration
    39  and reversion of such subdivision pursuant to section 46 of chapter  116
    40  of  the  laws of 1997, as amended, when upon such date the provisions of
    41  section twelve of this act shall take effect;
    42    (g) the amendment to clause (ii) of paragraph 3 of  subdivision  a  of
    43  section  12  of the emergency tenant protection act of nineteen seventy-
    44  four, made by section thirteen of this act shall be subject to the expi-
    45  ration and reversion of such subdivision pursuant to section 46 of chap-
    46  ter 116 of the laws of  1997,  as  amended,  when  upon  such  date  the
    47  provisions of section fourteen of this act shall take effect;
    48    (h) the provisions of sections fifty-seven and fifty-eight of this act
    49  shall  not  affect the expiration and repeal of article 241 of the penal
    50  law pursuant to subdivision 6 of section 46 of chapter 116 of  the  laws
    51  of 1997, as amended, and shall expire and be deemed repealed therewith;
    52    (i) the amendments to chapter 4 of title 26 of the administrative code
    53  of  the city of New York, made by section thirty-two of this act and the
    54  emergency tenant protection act of nineteen seventy-four made by section
    55  thirty-three of this  act  and  affecting  class  A  multiple  dwellings
    56  covered by a project-based assistance contract pursuant to section eight

        A. 7526                            37
 
     1  of the United States housing act of 1937, shall apply only to such class
     2  A  multiple  dwellings  whose  contract is no longer in effect after the
     3  date upon which this act shall take effect;
     4    (j)  the amendment to section 5 of the emergency tenant protection act
     5  of nineteen seventy-four made by section  forty-nine  of  this  act  and
     6  affecting  rental housing accommodations located in buildings which were
     7  owned by a company established under article 2 of  the  private  housing
     8  finance  law,  other  than  a  mutual company, that voluntarily dissolve
     9  pursuant to section 35 of such law, shall  apply  only  to  such  rental
    10  housing  accommodations  after  the  date upon which this act shall take
    11  effect;
    12    (k) notwithstanding section 13 of part A of chapter 97 of the laws  of
    13  2011,  the  effectiveness  of such part shall not be contingent upon the
    14  continuance of subdivision 3 of section 1 of the  local  emergency  rent
    15  control  act,  sections  26-501, 26-502 and 26-520 of the administrative
    16  code of the city of New York, section 17 of chapter 576 of the  laws  of
    17  1974  and  subdivision 2 of section 1 of chapter 274 of the laws of 1946
    18  constituting the emergency housing rent control law, and section  10  of
    19  chapter  555  of the laws of 1982, amending the general business law and
    20  the administrative code of the city of New York relating to  conversions
    21  of  residential  property to cooperative or condominium ownership in the
    22  city of New York as such laws are continued by chapter 93 of the laws of
    23  2011; and
    24    (l) the provisions of sections sixty-three, sixty-four and  sixty-five
    25  of this act shall be deemed to have been in full force and effect on and
    26  after March 11, 2014.
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