Enacts the "Housing Stability and Tenant Protection act of 2019"; extends and makes certain provisions of law permanent relating to rent control and rent stabilization (Part A); repeals provisions of law relating to rent increases after vacancy of housing accommodations (Part B); relates to vacancy of certain housing accommodations (Part C); relates to vacancies in certain housing accommodations and repeals various provisions of law relating to vacancy decontrol (Part D); relates to regulation of rents (Part E); relates to investigation of rent overcharge complaints (Part F); establishes the "statewide tenant protection act of 2019"; expands rent and eviction protections statewide (Part G); relates to rent adjustments and prohibition of fuel pass-along charges (Part H); relates to recovery of certain housing accommodations (Part I); relates to not-for-profits use of certain residential dwellings (Part J); relates to the temporary increase in rent in certain cases (Part K); enacts the "rent regulation reporting act of 2019" (Part L); enacts the "statewide housing security and tenant protection act of 2019" (Part M); relates to conversions to cooperative or condominium ownership in New York city (Part N); and relates to the duties and responsibilities of manufactured home park owners and residents (Part O).
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8281
SPONSOR: Heastie TITLE OF BILL: An act to amend chapter 576 of the laws of 1974 amend-
ing 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, and
the rent regulation reform act of 1997, in relation to making such
provisions permanent; to amend 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, Westchester and Rock-
land, in relation to making such provisions permanent (Part A); to
repeal certain provisions of the administrative code of the city of New
York, the emergency tenant protection act of nineteen seventy-four, the
emergency housing rent control law and the local emergency rent control
act, relating to rent increases after vacancy of a housing accommodation
(Part B); to amend the administrative code of the city of New York and
the emergency tenant protection act of nineteen seventy-four, in
relation to vacancy of certain housing accommodations and to amend the
emergency tenant protection act of nineteen seventy-four and the admin-
istrative code of the city of New York, in relation to prohibiting a
county rent guidelines board from establishing rent adjustments for
class A dwelling units based on certain considerations (Part C); to
amend the emergency tenant protection act of nineteen seventy-four, in
relation to vacancies in certain housing accommodations; and to repeal
paragraphs 12 and 13 of subdivision a of section 5 and section 5-a of
section 4 of chapter 576 of the laws of 1974 constituting the emergency
tenant protection act of nineteen seventy-four, paragraph (n) of subdi-
vision 2 of section 2 of chapter 274 of the laws of 1946, constituting
the emergency housing rent control law, and sections 26-504.1, 26-504.2
and 26-504.3 and subparagraph (k) of paragraph 2 of subdivision e of
section 26-403 of the administrative code of the city of New York,
relating to vacancy decontrol (Part D); to amend the emergency tenant
protection act of nineteen seventy-four and the administrative code of
the city of New York, in relation to the regulation of rents (Part E);
to amend the emergency tenant protection act of nineteen seventy-four,
the administrative code of the city of New York and the civil practice
law and rules, in relation to investigation of rent overcharge
complaints (Part F); to establish the "statewide tenant protection act
of 2019"; and to amend the emergency tenant protection act of nineteen
seventy-four, in relation to expanding rent and eviction protections
statewide (Part G); 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 and prohibition of fuel pass-along
charges; and to repeal certain provisions of the administrative code of
the city of New York relating thereto (Part H); to amend the administra-
tive 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
(Part I); to amend the emergency tenant protection act of nineteen
seventy-four, in relation to not-for-profits' use of certain residential
dwellings (Part J); 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 a temporary
increase in rent in certain cases (Part K); to amend the public housing
law, in relation to enacting the "rent regulation reporting act of 2019"
(Part L); to amend the real property law, the real property actions and
proceedings law, the general obligations law and the judiciary law, in
relation to enacting the "statewide housing security and tenant
protection act of 2019"; establishes the New York state temporary
commission on housing security and tenant protection; and to repeal
certain provisions of the real property actions and proceedings law
relating thereto (Part M); to amend the general business law, in
relation to conversions to cooperative or condominium ownership in the
city of New York (Part N); and to amend the real property law, in
relation to the duties and responsibilities of manufactured home park
owners and residents (Part O)
PURPOSE:
Provide permanent rent regulation protections to covered buildings;
extend tenant protections statewide; expand tenant protections for
mobile and manufactured home owners and residents in manufactured home
parks.
SUMMARY OF PROVISIONS:
Part A. Names this Act the "Housing Stability and Tenant Protection Act
of 2019; Would make permanent the system of rent regulation in New York
State and building conversions to cooperative or condominium ownership
in the City of New York.
Part B: Repeals Vacancy Bonus Increases, which allows automatic rent
increases of up to 20% upon vacancy; Repeals Longevity Increases, which
allows automatic rent increases based on the length of time since the
last vacancy.
Part C: Prohibits a Rent Guidelines Board (RGB) from setting vacancy
bonus rent increases. Prohibits an RGB from setting longevity rent
increases.
Part D: Repeals High Rent Deregulation, which allows units to be removed
from rent regulation upon vacancy after the rent achieves a high rent
threshold; and Repeals High Income Deregulation provisions, which allows
units to be removed from rent regulation if a tenant's income is
$200,000 or more for two consecutive years.
Part E: Sets the Preferential Rent as the base rent for the duration of
a tenancy, but preserves regulatory agreements that allow for legal rent
increases.
Part F: Allows HCR or a court of competent jurisdiction to look back at
6 years of rent history when determining rent overcharges, or a longer
look back period if it is reasonably necessary to make a determination.
Eliminates the ability of an owner to escape punitive damages where the
overcharges were willful.
Part G: Enacts the "Statewide Tenant Protection Act of 2019" to allow
any city, town or village to opt-in to ETPA and provides the appointment
of the members of the RGBs to be done by the opting-in municipalities.
Part H: Amends the maximum collectable rent increase formula that
applies to Rent Control units to set annual increase at either an aver-
age of the last five years of RGB increases, or 7.5%, whichever is less;
and prohibits Fuel Pass-Along charges for rent-controlled tenants.
Part I: Reforms the personal use exclusion to limit the number of units
an owner can take out of rent regulation, and requires the use to be an
immediate and compelling necessity for use as a primary residence.
Part J: Ensures that units rented by nonprofits to provide housing to
homeless or previously homeless people revert to rent regulation at the
end of the use by the nonprofit, and that the previously homeless person
or persons are treated as tenants for purposes of the law.
Part K: Major Capital Improvement (MCI) & Individual Apartment Improve-
ment (IAI) Reforms
* Limits approvals to work for essential building functions and other
improvements (e.g, heat, plumbing, windows, roofing); exclude main-
tenance.
* Limits spending to HCR schedule of reasonable costs for improve-
ments.
* Prohibits approval where owner has hazardous violations on build-
ing.
* Adjust the annual cap for MCI rent increases approved within the
prior seven years for continuing tenant.
* Associated rent increases may only be prospective.
* Requires HCR to audit and inspect work on a minimum of 25% of
approved MCIs annually.
* Reduces rent increases paid by tenants and makes increases tempo-
rary:
o Amortize: 12 years for buildings of 35 units or less; 12.5
years for other buildings;
o Cap Rent Increases at 2% annually;Rent surcharges would
expire in 30 years.
* Reforms Individual Apartment Improvements (IAIs) to limit rent
increases to substantial modifications:
o Up to 3 times in any 15 years, for up to $15,000;
o Amortize: 14 years for smaller buildings of 35 units or less;
15 years for all other larger buildings; and,
o Surcharges expire in 30 years.
Part L: Requires the Division of Home and Community Renewal (HCR) to
conduct an annual report on rent regulation that would be due on Dec. 31
of each year and be made publicly available.
Part M: Establishes the Statewide Housing Security and Tenant Protection
Act of 2019."
* Section one sets forth the short title.
* Section two strengthens tenant protections against retaliatory
evictions.
* Section three requires written notice before increasing the rent or
refusing to renew a ase.
* Section four requires a landlord to, in good faith and according to
their resources and abilities, take reasonable and customary steps
to re-rent a unit if the tenant vacates before the end of the lease
term.
* Section five bans the use of "tenant blacklists" and protects a
tenant's ability to fight for their rights in housing court.
* Sections six and seven conform existing notice requirements for
month-to-month tenancies to the notice requirement created by
section three.
* Section eight prohibits landlords from recovering attorneys' fees
when the tenant does not contest the eviction and the landlord wins
a default judgment.
* Section nine provides more robust record-keeping when tenants pay
with cash and requires notice if the landlord does not receive
payment within five days of the due date.
* Section ten prohibits landlords from charging application fees,
except the actual cost of background checks and credit checks, and
limits late fees to $50 or 5% of the monthly rent, whichever is
less.
* Section eleven defines "rent" for the purposes of eviction
proceedings to exclude extraneous fees and charges to protect
tenants from eviction due to failure to pay fees.
* Section twelve requires a written demand for rent with 14 days'
notice before beginning an eviction proceeding for non-payment of
rent.
* Section thirteen allows a tenant to pay the full amount of rent due
before the hearing on an eviction petition and avoid eviction.
* Sections fourteen and fifteen provide an additional five days for
tenants to respond to petitions for eviction.
* Section sixteen allows the tenant to answer the petition at the
hearing, rather than providing an answer three days before the
hearing.
* Section seventeen provides tenants with at least one adjournment of
an eviction proceeding of at least 14 days, as of right, and it
reforms the requirements for payment of use and occupancy in New
York City Housing Court.
* Section eighteen repeals section 747-a of the Real Property Actions
and Proceedings Law.
* Section nineteen provides tenants with at least 14 days notice
before the execution of an eviction warrant and requires additional
information on the warrant. If the eviction was for non-payment of
rent, it also allows the tenant to pay the full amount of rent due
before the execution of the warrant and avoid eviction, unless the
tenant withheld the rent in bad faith.
* Section twenty repeals an expired subdivision of the Real Property
Actions and Proceedings Law.
* Section twenty-one allows judges to issue a stay of eviction for up
to one year where the tenant cannot find suitable housing in the
same neighborhood or the eviction would cause extreme hardship. It
also provides an automatic 30 day stay of eviction where the
eviction is based on breach of a provision of the lease to allow
the tenant an opportunity to cure the breach.
* Section twenty-two expands the requirement that a court stay
eviction proceedings if utilities have been cut off to the building
due to the landlord's failure to pay for utilities. Currently, this
only applies to multiple dwellings, but this section makes it apply
to all dwellings.
* Section twenty-three requires the court to seal an eviction if it
was the result of a foreclosure of the building and the tenant was
not at fault.
* Section twenty-four creates the crime of unlawful eviction.
* Section twenty-five limits security deposits to one month's rent
and requires the return of the deposit within 14 days of the end of
occupancy with an itemized statement for any portion of the deposit
withheld.
* Section twenty-six prohibits the Office of Court Administration
from selling housing court data to third parties.
* Section twenty-seven creates the New York State Temporary Commis-
sion on Housing Security and Tenant Protection, which will study
the impacts of the bill and issue a report recommending future
legislation by December 31, 2022.
* Section twenty-eight provides a severability clause.
* Section twenty-nine provides the effective date.
Part N. Reforms Condo & Co-Op Conversions to repeal eviction plan
conversions, limit non-eviction plan conversions of rent regulated
buildings to preserve the rental housing stock, and provide additional
protections for senior citizens and disabled tenants in buildings seek-
ing a non-eviction plan conversion.
Part O: Mobile & Manufactured Home Part Tenant Protections:
* Establishes Rent-to-Own protections;
* Requires a Homeowner Rights rider to leases;.
* Requires a stipend to be paid to homeowners evicted for the conver-
sion of the use of the park parcels the home is situated on and 2
years notice of the change of use;.
* Provides stronger protections against evictions; and,
* Limits rent increases to 3% with the ability of tenants to chal-
lenge in court any higher increases.
EXISTING LAW:
New Bill.
JUSTIFICATION:
Rent regulations were enacted in response to an ongoing housing shortage
crisis, as evidenced by an extremely low vacancy rate. Under tight
rental markets, tenants struggle to secure safe, affordable housing, and
landlords have little incentive to keep tenants in place long term by
offering consistently low rent increases. Today, the City of New York
and municipalities in Nassau, Westchester, and Rockland counties strug-
gle to protect their regulated housing stock, which provides and main-
tains affordable housing for millions of low and middle income tenants.
Rent regulations have been proven to protect tenants while allowing
owners to invest in their buildings. Municipalities struggling with the
same housing pressures deserve to have the same access to rent regu-
lations that New York City residents have had for decades. This would
allow local governments the opportunity to protect their housing stock
as well, so residents can afford to live there with out the threat of
eviction, the fear of rapid and unaffordable rent increases, or rent
burden.
As has been extensively documented, New York State ranks only 39th in
the nation for tenant protections. For tenants who rent market-rate
units, this legislation would ensure they do not face unreasonable
barriers to applying for and being offered leases; have more notice if a
landlord wants to bring a court proceeding against them; allow more
leniency throughout any eviction proceeding, including stays of eviction
and executions of warrants; and ensure that any eviction that is
executed is done so in the interest of justice.
Mobile and manufactured homes (MMH) are a critical component to solving
the affordable housing crisis in upstate and rural communities across
New York State. These provisions would implement sweeping changes to
protect MMH owners who rent plots of land from a park owner or operator
and MMH tenants wishing to rent to own a home already situated on a plot
of land, to prevent displacement and park owner/operator abuses.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
To be determined.
LOCAL FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
Effective Immediately.
