Bill Text: NY A05202 | 2017-2018 | General Assembly | Introduced
Bill Title: Enacts the "Tenant Protection Act of 2017"; relates to recovery of certain housing accommodations by a landlord (Part A); relates to the adjustment of maximum allowable rent (Part B); relates to project-based rental assistance (Part C); relates to rent regulation (Part D); relates to the definition of "family member"; relates to the definition of "tenant" (Part F); relates to vacancy decontrol (Part G); relates to the regulation of rents (Part H); relates to hardship applications (Part I); relates to extending the length of time over which major capital improvement expenses may be recovered; relates to the approval of major capital improvement rent increases (Part J); relates to the establishment of rent adjustments; repeals certain provisions of the administrative code of the city of New York (Part K); relates to surcharges for installation or use of certain appliances (Part L).
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-01-03 - referred to housing [A05202 Detail]
Download: New_York-2017-A05202-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5202 2017-2018 Regular Sessions IN ASSEMBLY February 6, 2017 ___________ Introduced by M. of A. ROSENTHAL -- read once and referred to the Committee on Housing AN ACT 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 (Part A); to amend the adminis- trative 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; and 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 (Part B); to amend the emergency tenant protection act of nineteen seventy- four, in relation to limited-profit housing companies and other build- ings or structures which received project-based rental assistance (Part C); to amend the local emergency housing rent control act, in relation to rent regulation laws (Part D); Intentionally omitted (Part E); to amend the public housing law, in relation to the definition of "family member"; 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 definition of a tenant (Part F); to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to making conforming technical changes; and to repeal paragraph 13 of subdivi- sion a of section 5 of section 4 of chapter 576 of the laws of 1974 constituting the emergency tenant protection act of nineteen seventy- four, paragraph (n) of subdivision 2 of section 2 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, and section 26-504.2 and subparagraph (k) of paragraph 2 of subdivi- sion e of section 26-403 of the administrative code of the city of New York, relating to vacancy decontrol (Part G); 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 H); to amend the administrative code of the city of New York and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00022-02-7A. 5202 2 the emergency tenant protection act of nineteen seventy-four, in relation to hardship applications (Part I); 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 extending the length of time over which major capital improvement expenses may be recovered and in relation to approval of major capital improvement rent increases (Part J); to amend the admin- istrative code of the city of New York and the emergency housing rent control law, in relation to the establishment of rent adjustments; and repealing certain provisions of the administrative code of the city of New York relating thereto (Part K); and to amend the administrative code of the city of New York, in relation to surcharges for the installation or use of certain appliances in housing accommodations subject to rent control (Part L) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 related to rent regulations in the state of New York. Each component is 3 wholly contained within a Part identified as Parts A through L. The 4 effective date for each particular provision contained within such Part 5 is set forth in the last section of such Part. Any provision in any 6 section contained within a Part, including the effective date of the 7 Part, which makes reference to a section "of this act", when used in 8 connection with that particular component, shall be deemed to mean and 9 refer to the corresponding section of the Part in which it is found. 10 Section four of this act sets forth the general effective date of this 11 act. 12 § 2. This act shall be known and may be cited as the "Tenant 13 Protection Act of 2017". 14 PART A 15 Section 1. Paragraph 1 of subdivision b of section 26-408 of the 16 administrative code of the city of New York is amended to read as 17 follows: 18 (1) The landlord seeks in good faith to recover possession of a hous- 19 ing accommodation because of immediate and compelling necessity for his 20 or her own personal use and occupancy as his or her primary residence or 21 for the use and occupancy of his or her immediate family as their prima- 22 ry residence provided, however, that this subdivision shall permit 23 recovery of only one housing accommodation and shall not apply where a 24 member of the household lawfully occupying the housing accommodation is 25 sixty-two years of age or older, has been a tenant in a housing accommo- 26 dation in that building for twenty years or more, or has an impairment 27 which results from anatomical, physiological or psychological condi- 28 tions, other than addiction to alcohol, gambling, or any controlled 29 substance, which are demonstrable by medically acceptable clinical and 30 laboratory diagnostic techniques, and which are expected to be permanent 31 and which prevent the tenant from engaging in any substantial gainful 32 employment; or 33 § 2. Subparagraph (b) of paragraph 9 of subdivision c of section 34 26-511 of the administrative code of the city of New York is amended to 35 read as follows:A. 5202 3 1 (b) where he or she seeks to recover possession of one [or more] 2 dwelling [units] unit because of immediate and compelling necessity for 3 his or her own personal use and occupancy as his or her primary resi- 4 dence [in the city of New York and/or] or for the use and occupancy of a 5 member of his or her immediate family as his or her primary residence 6 [in the city of New York], provided however, that this subparagraph 7 shall permit recovery of only one dwelling unit and shall not apply 8 where a tenant or the spouse of a tenant lawfully occupying the dwelling 9 unit is sixty-two years of age or older, has been a tenant in a dwelling 10 unit in that building for twenty years or more, or has an impairment 11 which results from anatomical, physiological or psychological condi- 12 tions, other than addiction to alcohol, gambling, or any controlled 13 substance, which are demonstrable by medically acceptable clinical and 14 laboratory diagnostic techniques, and which are expected to be permanent 15 and which prevent the tenant from engaging in any substantial gainful 16 employment, unless such owner offers to provide and if requested, 17 provides an equivalent or superior housing accommodation at the same or 18 lower stabilized rent in a closely proximate area. The provisions of 19 this subparagraph shall only permit one of the individual owners of any 20 building to recover possession of one [or more] dwelling [units] unit 21 for his or her own personal use and/or for that of his or her immediate 22 family. [Any] A dwelling unit recovered by an owner pursuant to this 23 subparagraph shall not for a period of three years be rented, leased, 24 subleased or assigned to any person other than a person for whose bene- 25 fit recovery of the dwelling unit is permitted pursuant to this subpara- 26 graph or to the tenant in occupancy at the time of recovery under the 27 same terms as the original lease. This subparagraph shall not be deemed 28 to establish or eliminate any claim that the former tenant of the dwell- 29 ing unit may otherwise have against the owner. Any such rental, lease, 30 sublease or assignment during such period to any other person may be 31 subject to a penalty of a forfeiture of the right to any increases in 32 residential rents in such building for a period of three years; or 33 § 3. Subdivision a of section 10 of section 4 of chapter 576 of the 34 laws of 1974, constituting the emergency tenant protection act of nine- 35 teen seventy-four, as amended by chapter 234 of the laws of 1984, is 36 amended to read as follows: 37 a. For cities having a population of less than one million and towns 38 and villages, the state division of housing and community renewal shall 39 be empowered to implement this act by appropriate regulations. Such 40 regulations may encompass such speculative or manipulative practices or 41 renting or leasing practices as the state division of housing and commu- 42 nity renewal determines constitute or are likely to cause circumvention 43 of this act. Such regulations shall prohibit practices which are likely 44 to prevent any person from asserting any right or remedy granted by this 45 act, including but not limited to retaliatory termination of periodic 46 tenancies and shall require owners to grant a new one or two year vacan- 47 cy or renewal lease at the option of the tenant, except where a mortgage 48 or mortgage commitment existing as of the local effective date of this 49 act provides that the owner shall not grant a one-year lease; and shall 50 prescribe standards with respect to the terms and conditions of new and 51 renewal leases, additional rent and such related matters as security 52 deposits, advance rental payments, the use of escalator clauses in leas- 53 es and provision for increase in rentals for garages and other ancillary 54 facilities, so as to insure that the level of rent adjustments author- 55 ized under this law will not be subverted and made ineffective. Any 56 provision of the regulations permitting an owner to refuse to renew aA. 5202 4 1 lease on grounds that the owner seeks to recover possession of [the] a 2 housing accommodation for his or her own use and occupancy or for the 3 use and occupancy of his or her immediate family shall permit recovery 4 of only one housing accommodation, shall require that an owner demon- 5 strate immediate and compelling need and that the housing accommodation 6 will be the proposed occupants' primary residence and shall not apply 7 where a member of the housing accommodation is sixty-two years of age or 8 older, has been a tenant in a housing accommodation in that building for 9 twenty years or more, or has an impairment which results from anatom- 10 ical, physiological or psychological conditions, other than addiction to 11 alcohol, gambling, or any controlled substance, which are demonstrable 12 by medically acceptable clinical and laboratory diagnostic techniques, 13 and which are expected to be permanent and which prevent the tenant from 14 engaging in any substantial gainful employment. 15 § 4. Paragraph (a) of subdivision 2 of section 5 of chapter 274 of the 16 laws of 1946, constituting the emergency housing rent control law, as 17 amended by chapter 234 of the laws of 1984, is amended to read as 18 follows: 19 (a) the landlord seeks in good faith to recover possession of a hous- 20 ing [accommodations] accommodation because of immediate and compelling 21 necessity for his or her own personal use and occupancy as his or her 22 primary residence or for the use and occupancy of his or her immediate 23 family as their primary residence; provided, however, this subdivision 24 shall permit recovery of only one housing accommodation and shall not 25 apply where a member of the household lawfully occupying the housing 26 accommodation is sixty-two years of age or older, has been a tenant in a 27 housing accommodation in that building for twenty years or more, or has 28 an impairment which results from anatomical, physiological or psycholog- 29 ical conditions, other than addiction to alcohol, gambling, or any 30 controlled substance, which are demonstrable by medically acceptable 31 clinical and laboratory diagnostic techniques, and which are expected to 32 be permanent and which prevent the tenant from engaging in any substan- 33 tial gainful employment; or 34 § 5. This act shall take effect immediately and shall apply to any 35 tenant in possession at or after the time it takes effect, regardless of 36 whether the landlord's application for an order, refusal to renew a 37 lease or refusal to extend or renew a tenancy took place before this act 38 shall have taken effect, provided that: 39 a. the amendments to section 26-408 of the city rent and rehabili- 40 tation law made by section one of this act shall remain in full force 41 and effect only as long as the public emergency requiring the regulation 42 and control of residential rents and evictions continues, as provided in 43 subdivision 3 of section 1 of the local emergency housing rent control 44 act; 45 b. the amendments to section 26-511 of the rent stabilization law of 46 nineteen hundred sixty-nine made by section two of this act shall expire 47 on the same date as such law expires and shall not affect the expiration 48 of such law as provided under section 26-520 of such law; 49 c. the amendments to subdivision a of section 10 of section 4 of the 50 emergency tenant protection act of nineteen seventy-four made by section 51 three of this act shall expire on the same date as such act expires and 52 shall not affect the expiration of such act as provided in section 17 of 53 chapter 576 of the laws of 1974; and 54 d. the amendments to paragraph (a) of subdivision 2 of section 5 of 55 the emergency housing rent control law made by section four of this act 56 shall expire on the same date as such law expires and shall not affectA. 5202 5 1 the expiration of such law as provided in subdivision 2 of section 1 of 2 chapter 274 of the laws of 1946. 3 PART B 4 Section 1. Paragraph 5-a of subdivision c of section 26-511 of the 5 administrative code of the city of New York, as amended by section 16-a 6 of part A of chapter 20 of the laws of 2015, is amended to read as 7 follows: 8 (5-a) provides that, notwithstanding any provision of this chapter, 9 the legal regulated rent for any vacancy lease entered into after the 10 effective date of this paragraph shall be as hereinafter provided in 11 this paragraph. [The previous legal regulated rent for such housing12accommodation shall be increased by the following: (i) if the vacancy13lease is for a term of two years, twenty percent of the previous legal14regulated rent; or (ii) if the vacancy lease is for a term of one year15the increase shall be twenty percent of the previous legal regulated16rent less an amount equal to the difference between (a) the two year17renewal lease guideline promulgated by the guidelines board of the city18of New York applied to the previous legal regulated rent and (b) the one19year renewal lease guideline promulgated by the guidelines board of the20city of New York applied to the previous legal regulated rent. However,21where the amount charged and paid by the prior tenant pursuant to para-22graph fourteen of this subdivision, was less than the legal regulated23rent, such increase to the legal regulated rent shall not exceed: five24percent of the previous legal regulated rent if the last vacancy lease25commenced less than two years ago; ten percent of the previous legal26regulated rent if the last vacancy lease commenced less than three years27ago; fifteen percent of the previous legal regulated rent if the last28vacancy lease commenced less than four years ago; twenty percent of the29previous legal regulated rent if the last vacancy lease commenced four30or more years ago. In addition, if] If the legal regulated rent was not 31 increased with respect to such housing accommodation by a permanent 32 vacancy allowance within eight years prior to a vacancy lease executed 33 on or after the effective date of this paragraph, the legal regulated 34 rent may be [further] increased by an amount equal to the product 35 resulting from multiplying such previous legal regulated rent by six- 36 tenths of one percent and further multiplying the amount of rent 37 increase resulting therefrom by the greater of (A) the number of years 38 since the imposition of the last permanent vacancy allowance, or (B) if 39 the rent was not increased by a permanent vacancy allowance since the 40 housing accommodation became subject to this chapter, the number of 41 years that such housing accommodation has been subject to this chapter. 42 Provided that if the previous legal regulated rent was less than three 43 hundred dollars the total increase shall be as calculated above plus one 44 hundred dollars per month. Provided, further, that if the previous legal 45 regulated rent was at least three hundred dollars and no more than five 46 hundred dollars in no event shall the total increase pursuant to this 47 paragraph be less than one hundred dollars per month. Such increase 48 shall be [in lieu of any allowance authorized for the one or two year49renewal component thereof, but shall be] in addition to any other 50 increases authorized pursuant to this chapter including an adjustment 51 based upon a major capital improvement, or a substantial modification or 52 increase of dwelling space or services, or installation of new equipment 53 or improvements or new furniture or furnishings provided in or to the 54 housing accommodation pursuant to this section. The increase authorizedA. 5202 6 1 in this paragraph may not be implemented more than one time in any 2 calendar year, notwithstanding the number of vacancy leases entered into 3 in such year, and may not be implemented without the landlord providing 4 to the new tenant an itemized cost accounting of all improvements 5 claimed as part of such increase and copies of the corresponding 6 receipts with the lease agreement. 7 § 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of 8 the laws of 1974, constituting the emergency tenant protection act of 9 nineteen seventy-four, as amended by section 16-b of part A of chapter 10 20 of the laws of 2015, is amended to read as follows: 11 (a-1) provides that, notwithstanding any provision of this act, the 12 legal regulated rent for any vacancy lease entered into after the effec- 13 tive date of this subdivision shall be as hereinafter set forth. [The14previous legal regulated rent for such housing accommodation shall be15increased by the following: (i) if the vacancy lease is for a term of16two years, twenty percent of the previous legal regulated rent; or (ii)17if the vacancy lease is for a term of one year the increase shall be18twenty percent of the previous legal regulated rent less an amount equal19to the difference between (a) the two year renewal lease guideline20promulgated by the guidelines board of the county in which the housing21accommodation is located applied to the previous legal regulated rent22and (b) the one year renewal lease guideline promulgated by the guide-23lines board of the county in which the housing accommodation is located24applied to the previous legal regulated rent. However, where the amount25charged and paid by the prior tenant pursuant to paragraph fourteen of26this subdivision, was less than the legal regulated rent, such increase27to the legal regulated rent shall not exceed: five percent of the previ-28ous legal regulated rent if the last vacancy lease commenced less than29two years ago; ten percent of the previous legal regulated rent if the30last vacancy commenced less than three years ago; fifteen percent of the31previous legal regulated rent if the last vacancy lease commenced less32than four years ago; twenty percent of the previous legal regulated rent33if the last vacancy lease commenced four or more years ago. In addition,34if] If the legal regulated rent was not increased with respect to such 35 housing accommodation by a permanent vacancy allowance within eight 36 years prior to a vacancy lease executed on or after the effective date 37 of this subdivision, the legal regulated rent may be [further] increased 38 by an amount equal to the product resulting from multiplying such previ- 39 ous legal regulated rent by six-tenths of one percent and further multi- 40 plying the amount of rent increase resulting therefrom by the greater of 41 (A) the number of years since the imposition of the last permanent 42 vacancy allowance, or (B) if the rent was not increased by a permanent 43 vacancy allowance since the housing accommodation became subject to this 44 act, the number of years that such housing accommodation has been 45 subject to this act. Provided that if the previous legal regulated rent 46 was less than three hundred dollars the total increase shall be as 47 calculated above plus one hundred dollars per month. Provided, further, 48 that if the previous legal regulated rent was at least three hundred 49 dollars and no more than five hundred dollars in no event shall the 50 total increase pursuant to this subdivision be less than one hundred 51 dollars per month. Such increase shall be [in lieu of any allowance52authorized for the one or two year renewal component thereof, but shall53be] in addition to any other increases authorized pursuant to this act 54 including an adjustment based upon a major capital improvement, or a 55 substantial modification or increase of dwelling space or services, or 56 installation of new equipment or improvements or new furniture orA. 5202 7 1 furnishings provided in or to the housing accommodation pursuant to 2 section six of this act. The increase authorized in this subdivision may 3 not be implemented more than one time in any calendar year, notwith- 4 standing the number of vacancy leases entered into in such year, and may 5 not be implemented without the landlord providing to the new tenant an 6 itemized cost accounting of all improvements claimed as part of such 7 increase and copies of the corresponding receipts with the lease agree- 8 ment. 9 § 3. Subparagraph (e) of paragraph 1 of subdivision g of section 10 26-405 of the administrative code of the city of New York, as amended by 11 section 15 of part B of chapter 97 of the laws of 2011, is amended to 12 read as follows: 13 (e) The landlord and tenant by mutual voluntary written agreement 14 agree to a substantial increase or decrease in dwelling space or a 15 change in the services, furniture, furnishings or equipment provided in 16 the housing accommodations. An adjustment under this subparagraph shall 17 be equal to one-fortieth, in the case of a building with thirty-five or 18 fewer housing accommodations, or [one-sixtieth] one-eighty-fourth, in 19 the case of a building with more than thirty-five housing accommodations 20 where such adjustment takes effect on or after September twenty-fourth, 21 two thousand eleven, of the total cost incurred by the landlord in 22 providing such modification or increase in dwelling space, services, 23 furniture, furnishings or equipment, including the cost of installation, 24 but excluding finance charges, with an adjustment, in both cases, being 25 no more than twenty percent of the current rent, provided further that 26 an owner who is entitled to a rent increase pursuant to this subpara- 27 graph shall not be entitled to a further rent increase based upon the 28 installation of similar equipment, or new furniture or furnishings with- 29 in the useful life of such new equipment, or new furniture or 30 furnishings. The owner shall give written notice to the city rent agency 31 of any such adjustment pursuant to this subparagraph; or 32 § 4. Paragraph 13 of subdivision c of section 26-511 of the adminis- 33 trative code of the city of New York, as amended by section 16 of part B 34 of chapter 97 of the laws of 2011, is amended to read as follows: 35 (13) provides that an owner is entitled to a rent increase where there 36 has been a substantial modification or increase of dwelling space or an 37 increase in the services, or installation of new equipment or improve- 38 ments or new furniture or furnishings provided in or to a tenant's hous- 39 ing accommodation, on written tenant consent to the rent increase. In 40 the case of a vacant housing accommodation, tenant consent shall not be 41 required. The permanent increase in the legal regulated rent for the 42 affected housing accommodation shall be one-fortieth, in the case of a 43 building with thirty-five or fewer housing accommodations, or [one-six-44tieth] one-eighty-fourth, in the case of a building with more than thir- 45 ty-five housing accommodations where such permanent increase takes 46 effect on or after September twenty-fourth, two thousand eleven, of the 47 total cost incurred by the landlord in providing such modification or 48 increase in dwelling space, services, furniture, furnishings or equip- 49 ment, including the cost of installation, but excluding finance charges, 50 provided, however, that in both cases, the permanent increase is no more 51 than twenty percent of the current legal regulated rent. Provided 52 further that an owner who is entitled to a rent increase pursuant to 53 this paragraph shall not be entitled to a further rent increase based 54 upon the installation of similar equipment, or new furniture or 55 furnishings within the useful life of such new equipment, or new furni- 56 ture or furnishings.A. 5202 8 1 § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter 2 576 of the laws of 1974, constituting the emergency tenant protection 3 act of nineteen seventy-four, as amended by section 18 of part B of 4 chapter 97 of the laws of 2011, is amended to read as follows: 5 (1) there has been a substantial modification or increase of dwelling 6 space or an increase in the services, or installation of new equipment 7 or improvements or new furniture or furnishings, provided in or to a 8 tenant's housing accommodation, on written tenant consent to the rent 9 increase. In the case of a vacant housing accommodation, tenant consent 10 shall not be required. The permanent increase in the legal regulated 11 rent for the affected housing accommodation shall be one-fortieth, in 12 the case of a building with thirty-five or fewer housing accommodations, 13 or [one-sixtieth] one-eighty-fourth, in the case of a building with more 14 than thirty-five housing accommodations where such permanent increase 15 takes effect on or after September twenty-fourth, two thousand eleven, 16 of the total cost incurred by the landlord in providing such modifica- 17 tion or increase in dwelling space, services, furniture, furnishings or 18 equipment, including the cost of installation, but excluding finance 19 charges, provided, however, that in both cases, the permanent increase 20 is no more than twenty percent of the current legal regulated rent. 21 Provided further that an owner who is entitled to a rent increase pursu- 22 ant to this paragraph shall not be entitled to a further rent increase 23 based upon the installation of similar equipment, or new furniture or 24 furnishings within the useful life of such new equipment, or new furni- 25 ture or furnishings. 26 § 6. Subparagraph 5 of the second undesignated paragraph of paragraph 27 (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, 28 constituting the emergency housing rent control law, as amended by 29 section 25 of part B of chapter 97 of the laws of 2011, is amended to 30 read as follows: 31 (5) the landlord and tenant by mutual voluntary written agreement 32 agree to a substantial increase or decrease in dwelling space or a 33 change in the services, furniture, furnishings or equipment provided in 34 the housing accommodations; provided that an owner shall be entitled to 35 a rent increase where there has been a substantial modification or 36 increase of dwelling space or an increase in the services, or installa- 37 tion of new equipment or improvements or new furniture or furnishings 38 provided in or to a tenant's housing accommodation. The permanent 39 increase in the maximum rent for the affected housing accommodation 40 shall be one-fortieth, in the case of a building with thirty-five or 41 fewer housing accommodations, or [one-sixtieth] one-eighty-fourth, in 42 the case of a building with more than thirty-five housing accommodations 43 where such permanent increase takes effect on or after September twen- 44 ty-fourth, two thousand eleven, of the total cost incurred by the land- 45 lord in providing such modification or increase in dwelling space, 46 services, furniture, furnishings or equipment, including the cost of 47 installation, but excluding finance charges, provided, however, that in 48 both cases, the permanent increase is no more than twenty percent of the 49 current rent, and provided further that an owner who is entitled to a 50 rent increase pursuant to this clause shall not be entitled to a further 51 rent increase based upon the installation of similar equipment, or new 52 furniture or furnishings within the useful life of such new equipment, 53 or new furniture or furnishings. The owner shall give written notice to 54 the commission of any such adjustment pursuant to this clause; or 55 § 7. This act shall take effect immediately; provided that:A. 5202 9 1 a. the amendments to section 26-511 of chapter 4 of title 26 of the 2 administrative code of the city of New York made by sections one and 3 four of this act shall expire on the same date as such law expires and 4 shall not affect the expiration of such law as provided under section 5 26-520 of such law; 6 b. the amendments to sections 10 and 6 of the emergency tenant 7 protection act of nineteen seventy-four made by sections two and five of 8 this act shall expire on the same date as such act expires and shall not 9 affect the expiration of such act as provided in section 17 of chapter 10 576 of the laws of 1974; 11 c. the amendments to section 26-405 of the city rent and rehabili- 12 tation law made by section three of this act shall remain in full force 13 and effect only as long as the public emergency requiring the regulation 14 and control of residential rents and evictions continues, as provided in 15 subdivision 3 of section 1 of the local emergency housing rent control 16 act; and 17 d. the amendments to section 4 of the emergency housing rent control 18 law made by section six of this act shall expire on the same date as 19 such law expires and shall not affect the expiration of such law as 20 provided in subdivision 2 of section 1 of chapter 274 of the laws of 21 1946. 22 PART C 23 Section 1. Legislative findings and declaration of emergency. The 24 legislature hereby finds and declares that the serious public emergency 25 which led to the enactment of the existing laws regulating residential 26 rents and evictions continues to exist; that such laws would better 27 serve the public interest if certain changes were made thereto, includ- 28 ing extending to certain cities, towns and villages the authority to 29 provide for the regulation of rents and evictions with regard to housing 30 accommodations that cease or have ceased to be regulated pursuant to 31 article 2 of the private housing finance law, known as the Mitchell-Lama 32 law, or pursuant to project-based section eight contracts entered into 33 with the federal government. 34 The legislature further recognizes that severe disruption of the 35 rental housing market has occurred and threatens to be exacerbated as a 36 result of the abrupt termination of rent and eviction regulation when 37 buildings completed or substantially renovated as family units on or 38 after January first, nineteen hundred seventy-four exit the Mitchell- 39 Lama program or when buildings cease to be subject to project-based 40 section eight contracts. The situation had permitted speculative and 41 profiteering practices and has brought about the loss of vital and irre- 42 placeable affordable housing for working persons and families. 43 The legislature therefore declares that in order to prevent uncertain- 44 ty, potential hardship and dislocation of tenants living in housing 45 accommodations subject to government regulations as to rentals and 46 continued occupancy as well as those not subject to such regulations, 47 the provisions of this act are necessary to protect the public health, 48 safety and general welfare. The necessity in the public interest for the 49 provisions hereinafter enacted is hereby declared as a matter of legis- 50 lative determination. 51 § 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti- 52 tuting the emergency tenant protection act of nineteen seventy-four is 53 amended by adding a new subdivision c to read as follows:A. 5202 10 1 c. Notwithstanding any other provision of this section, nothing shall 2 prevent the declaration of an emergency pursuant to section three of 3 this act for rental housing accommodations located in buildings or 4 structures which were owned by a company established under article two 5 of the private housing finance law, other than a mutual company, which 6 are no longer owned by such company by reason of a voluntary dissolution 7 pursuant to section thirty-five of such law or for rental housing accom- 8 modations located in buildings or structures defined as covered projects 9 pursuant to section 8 of the United States housing act of nineteen thir- 10 ty-seven, as amended, or any successor statute, and any regulations 11 promulgated thereunder in which rental housing accommodations received 12 project-based rental assistance from the United States department of 13 housing and urban development pursuant to contracts with the owners of 14 such buildings or structures which expired or were terminated. The 15 initial legal regulated rent for housing accommodations located in 16 buildings or structures that were owned by housing companies or that 17 were covered projects previously regulated under the private housing 18 finance law or under federal law, shall be the rent charged to and paid 19 by the tenant in occupancy one hundred eighty days prior to the effec- 20 tive date of a chapter of the laws of two thousand seventeen which added 21 this subdivision or, for accommodations vacant on such date, the most 22 recent rent charged to and paid by a tenant prior to such date, includ- 23 ing any income-related surcharges, as adjusted by all applicable guide- 24 lines increases and other increases authorized by law. The provisions of 25 subdivision a of section nine of this act or of subdivision a of section 26 26-513 of the administrative code of the city of New York shall not 27 apply to any housing accommodation which became subject to this act 28 pursuant to the provisions of this subdivision. 29 § 3. Notwithstanding any provision of law to the contrary, in a city 30 having a population of one million or more, the New York city rent 31 stabilization law of nineteen hundred sixty-nine may be amended by local 32 law or ordinance to provide for the regulation of rents and evictions 33 and the enforcement of such rent stabilization law with regard to hous- 34 ing accommodations made subject to such law by a declaration of emergen- 35 cy made pursuant to this act. 36 § 4. This act shall take effect immediately and shall apply to housing 37 accommodations located in buildings or structures owned by housing 38 companies that dissolved on, before or after such date and to housing 39 accommodations in buildings or structures that were covered projects and 40 had contracts for rental assistance that expired or were terminated on, 41 before or after such date; provided that the amendments to section 5 of 42 the emergency tenant protection act of nineteen seventy-four made by 43 section two of this act shall expire on the same date as such act 44 expires and shall not affect the expiration of such act as provided in 45 section 17 of chapter 576 of the laws of 1974. 46 PART D 47 Section 1. Subdivision 5 of section 1 of chapter 21 of the laws of 48 1962, constituting the local emergency housing rent control act, as 49 amended by chapter 82 of the laws of 2003 and the closing paragraph as 50 amended by chapter 422 of the laws of 2010, is amended to read as 51 follows: 52 5. Authority for local rent control legislation. Each city having a 53 population of one million or more, acting through its local legislative 54 body, may adopt and amend local laws or ordinances in respect of theA. 5202 11 1 establishment or designation of a city housing rent agency. When it 2 deems such action to be desirable or necessitated by local conditions in 3 order to carry out the purposes of this section, such city, except as 4 hereinafter provided, acting through its local legislative body and not 5 otherwise, may adopt and amend local laws or ordinances in respect of 6 the regulation and control of residential rents, including but not 7 limited to provision for the establishment and adjustment of maximum 8 rents, the classification of housing accommodations, the regulation of 9 evictions, and the enforcement of such local laws or ordinances. The 10 validity of any such local laws or ordinances, and the rules or regu- 11 lations promulgated in accordance therewith, shall not be affected by 12 and need not be consistent with the state emergency housing rent control 13 law or with rules and regulations of the state division of housing and 14 community renewal. 15 Notwithstanding any local law or ordinance, housing accommodations 16 which became vacant on or after July first, nineteen hundred seventy-one 17 or which hereafter become vacant shall be subject to the provisions of 18 the emergency tenant protection act of nineteen seventy-four, provided, 19 however, that this provision shall not apply or become effective with 20 respect to housing accommodations which, by local law or ordinance, are 21 made directly subject to regulation and control by a city housing rent 22 agency and such agency determines or finds that the housing accommo- 23 dations became vacant because the landlord or any person acting on his 24 behalf, with intent to cause the tenant to vacate, engaged in any course 25 of conduct (including but not limited to, interruption or discontinuance 26 of essential services) which interfered with or disturbed or was 27 intended to interfere with or disturb the comfort, repose, peace or 28 quiet of the tenant in his use or occupancy of the housing accommo- 29 dations. The removal of any housing accommodation from regulation and 30 control of rents pursuant to the vacancy exemption provided for in this 31 paragraph shall not constitute or operate as a ground for the subjection 32 to more stringent regulation and control of any housing accommodation in 33 such property or in any other property owned by the same landlord, 34 notwithstanding any prior agreement to the contrary by the landlord. The 35 vacancy exemption provided for in this paragraph shall not arise with 36 respect to any rented plot or parcel of land otherwise subject to the 37 provisions of this act, by reason of a transfer of title and possession 38 occurring on or after July first, nineteen hundred seventy-one of a 39 dwelling located on such plot or parcel and owned by the tenant where 40 such transfer of title and possession is made to a member of the 41 tenant's immediate family provided that the member of the tenant's imme- 42 diate family occupies the dwelling with the tenant prior to the transfer 43 of title and possession for a continuous period of two years. 44 The term "immediate family" shall include a husband, wife, son, daugh- 45 ter, stepson, stepdaughter, father, mother, father-in-law or mother-in- 46 law. 47 [Notwithstanding the foregoing, no local law or ordinance shall here-48after provide for the regulation and control of residential rents and49eviction in respect of any housing accommodations which are (1) present-50ly exempt from such regulation and control or (2) hereafter decontrolled51either by operation of law or by a city housing rent agency, by order or52otherwise. No housing accommodations presently subject to regulation and53control pursuant to local laws or ordinances adopted or amended under54authority of this subdivision shall hereafter be by local law or ordi-55nance or by rule or regulation which has not been theretofore approved56by the state commissioner of housing and community renewal subjected toA. 5202 12 1more stringent or restrictive provisions of regulation and control than2those presently in effect.3Notwithstanding any other provision of law, on and after the effective4date of this paragraph, a city having a population of one million or5more shall not, either through its local legislative body or otherwise,6adopt or amend local laws or ordinances with respect to the regulation7and control of residential rents and eviction, including but not limited8to provision for the establishment and adjustment of rents, the classi-9fication of housing accommodations, the regulation of evictions, and the10enforcement of such local laws or ordinances, or otherwise adopt laws or11ordinances pursuant to the provisions of this act, the emergency tenant12protection act of nineteen seventy-four, the New York city rent and13rehabilitation law or the New York city rent stabilization law, except14to the extent that such city for the purpose of reviewing the continued15need for the existing regulation and control of residential rents or to16remove a classification of housing accommodation from such regulation17and control adopts or amends local laws or ordinances pursuant to subdi-18vision three of section one of this act, section three of the emergency19tenant protection act of nineteen seventy-four, section 26-415 of the20New York city rent and rehabilitation law, and sections 26-502 and2126-520 of the New York city rent stabilization law of nineteen hundred22sixty-nine.] 23 Notwithstanding any provision of this act to the contrary, any local 24 law adopted pursuant to this act shall provide that notwithstanding any 25 provision of such local law in the case where all tenants occupying the 26 housing accommodation on the effective date of this paragraph have 27 vacated the housing accommodation and a family member of such vacating 28 tenant or tenants is entitled to and continues to occupy the housing 29 accommodation subject to the protections of such act, if such accommo- 30 dation continues to be subject to such act after such family member 31 vacates, on the occurrence of such vacancy the maximum collectable rent 32 shall be increased by a sum equal to the allowance then in effect for 33 vacancy leases for housing accommodations covered by the rent stabiliza- 34 tion law of nineteen hundred sixty-nine, including the amount allowed by 35 paragraph (5-a) of subdivision c of section 26-511 of such law. This 36 increase shall be in addition to any other increases provided for in 37 this act and shall be applicable in like manner to each second subse- 38 quent succession. 39 Notwithstanding the foregoing, no local law or ordinance shall subject 40 to such regulation and control any housing accommodation which is not 41 occupied by the tenant in possession as his or her primary residence; 42 provided, however, that such housing accommodation not occupied by the 43 tenant in possession as his or her primary residence shall continue to 44 be subject to regulation and control as provided for herein unless the 45 city housing rent agency issues an order decontrolling such accommo- 46 dation, which the agency shall do upon application by the landlord when- 47 ever it is established by any facts and circumstances which, in the 48 judgment of the agency, may have a bearing upon the question of resi- 49 dence, that the tenant maintains his or her primary residence at some 50 place other than at such housing accommodation. For the purposes of 51 determining primary residency, a tenant who is a victim of domestic 52 violence, as defined in section four hundred fifty-nine-a of the social 53 services law, who has left the unit because of such violence, and who 54 asserts an intent to return to the housing accommodation shall be deemed 55 to be occupying the unit as his or her primary residence. 56 § 2. This act shall take effect immediately; provided, however, that:A. 5202 13 1 a. the amendments to subdivision 5 of section 1 of chapter 21 of the 2 laws of 1962 made by section one of this act shall remain in full force 3 and effect only so long as the public emergency requiring the regulation 4 and control of residential rents and evictions continues, as provided in 5 subdivision 3 of section 1 of the local emergency housing rent control 6 act; and 7 b. the amendment to the second undesignated paragraph of subdivision 5 8 of section 1 of chapter 21 of the laws of 1962 made by section one of 9 this act shall not affect the expiration and reversion of such paragraph 10 and shall be deemed to expire therewith. 11 PART E 12 Intentionally omitted 13 PART F 14 Section 1. Paragraph (c) of subdivision 4 of section 14 of the public 15 housing law, as added by chapter 116 of the laws of 1997, is amended to 16 read as follows: 17 (c) that for the purposes of such regulations: (i) "family member" 18 shall be defined as a husband, wife, son, daughter, stepson, stepdaught- 19 er, father, mother, stepfather, stepmother, brother, sister, uncle, 20 aunt, nephew, niece, grandfather, grandmother, grandson, granddaughter, 21 daughter-in-law, son-in-law, mother-in-law or father-in-law of the 22 tenant; or any other person residing with the tenant in the housing 23 accommodation as a primary residence who can prove emotional and finan- 24 cial commitment, and interdependence between such person and the tenant. 25 Although no single factor shall be solely determinative, evidence which 26 is to be considered in determining whether such emotional and financial 27 commitment and interdependence existed, may include, without limitation, 28 such factors as listed below. In no event would evidence of a sexual 29 relationship between such persons be required or considered. 30 (A) longevity of the relationship; 31 (B) sharing of or relying upon each other for payment of household or 32 family expenses, or other common necessities of life; 33 (C) intermingling of finances as evidenced by, among other things, 34 joint ownership of bank accounts, personal and real property, credit 35 cards, loan obligations, sharing a household budget for purposes of 36 receiving government benefits, or such other factors as may be deter- 37 mined by regulation; 38 (D) engaging in family-type activities by jointly attending family 39 functions, holidays and celebrations, social and recreational activ- 40 ities, or such other factors as may be determined by regulation; 41 (E) formalizing of legal obligations, intentions, and responsibilities 42 to each other by such means as executing wills naming each other as 43 executor or beneficiary, conferring upon each other a power of attorney 44 or authority to make health care decisions each for the other, entering 45 into a personal relationship contract, making a domestic partnership 46 declaration, or serving as a representative payee for purposes of public 47 benefits, or such other factors as may be determined by regulation; 48 (F) holding themselves out as family members to other family members, 49 friends, members of the community or religious institutions, or society 50 in general, through their words or actions;A. 5202 14 1 (G) regularly performing family functions, such as caring for each 2 other or each other's extended family members, or relying upon each 3 other for daily family services; 4 (H) engaging in any other pattern of behavior, agreement, or other 5 action which evidences the intention of creating a long-term, emotional- 6 ly-committed relationship. 7 (ii) a "senior citizen" is defined as a person who is sixty-two years 8 of age or older; 9 (iii) a "disabled person" is defined as a person who has an impairment 10 which results from anatomical, physiological or psychological condi- 11 tions, other than addiction to alcohol, gambling, or any controlled 12 substance, which are demonstrable by medically acceptable clinical and 13 laboratory diagnostic techniques, and which are expected to be permanent 14 and which substantially limit one or more of such person's major life 15 activities. 16 § 2. Subdivision m of section 26-403 of the administrative code of the 17 city of New York is amended to read as follows: 18 m. "Tenant." A tenant, subtenant, lessee, sublessee, or other person 19 entitled to the possession or to the use or occupancy of any housing 20 accommodation. The term tenant shall be deemed to include a child 21 (regardless of age) who has resided with his or her parent for two years 22 or more in a housing accommodation subject to the provisions of this 23 chapter and of which such parent is a tenant. 24 § 3. The administrative code of the city of New York is amended by 25 adding a new section 26-504.4 to read as follows: 26 § 26-504.4 Tenant; definition. For the purposes of this chapter, the 27 term tenant shall be deemed to include a child (regardless of age) who 28 has resided with his or her parent for two years or more in a housing 29 accommodation subject to the provisions of this chapter and of which 30 such parent is a tenant. 31 § 4. Section 14 of section 4 of chapter 576 of the laws of 1974, 32 constituting the emergency tenant protection act of nineteen seventy- 33 four, is renumbered section 15 and a new section 14 is added to read as 34 follows: 35 § 14. Tenant; definition. For the purposes of this act, the term 36 tenant shall be deemed to include a child (regardless of age) who has 37 resided with his or her parent for two years or more in a housing accom- 38 modation subject to the provisions of this act and of which such parent 39 is a tenant. 40 § 5. This act shall take effect immediately, provided that the amend- 41 ment to section 26-403 of the city rent and rehabilitation law made by 42 section two of this act shall remain in full force and effect only so 43 long as the public emergency requiring the regulation and control of 44 residential rents and evictions continues, as provided in subdivision 3 45 of section 1 of the local emergency housing rent control act and 46 provided further that section 26-504.4 of the rent stabilization law of 47 nineteen hundred sixty-nine, as added by section three of this act, 48 shall expire on the same date as such law expires and shall not affect 49 the expiration of such law as provided under section 26-520 of such law, 50 as amended, and provided further that section 15 of the emergency tenant 51 protection act of nineteen seventy-four, as added by section four of 52 this act shall expire on the same date as such act expires and shall not 53 affect the expiration of such act as provided in section 17 of chapter 54 576 of the laws of 1974, as amended. 55 PART GA. 5202 15 1 Section 1. Legislative findings and declaration of emergency. The 2 legislature hereby finds and declares that the serious public emergency 3 which led to the enactment of the existing laws regulating residential 4 rents and evictions continues to exist; that such laws would better 5 serve the public interest if certain changes were made thereto, includ- 6 ing the continued regulation of certain housing accommodations that 7 become vacant and the reinstatement of regulation of certain housing 8 accommodations that have been deregulated upon vacancy. 9 The legislature further recognizes that severe disruption of the 10 rental housing market has occurred and threatens to be exacerbated as a 11 result of the present state of the law in relation to the deregulation 12 of housing accommodations upon vacancy. The situation has permitted 13 speculative and profiteering practices and has brought about the loss of 14 vital and irreplaceable affordable housing for working persons and fami- 15 lies. 16 The legislature therefore declares that in order to prevent uncertain- 17 ty, potential hardship and dislocation of tenants living in housing 18 accommodations subject to government regulations as to rentals and 19 continued occupancy as well as those not subject to such regulation, the 20 provisions of this act are necessary to protect the public health, safe- 21 ty and general welfare. The necessity in the public interest for the 22 provisions hereinafter enacted is hereby declared as a matter of legis- 23 lative determination. 24 § 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the 25 laws of 1946, constituting the emergency housing rent control law, is 26 REPEALED. 27 § 3. Paragraph 13 of subdivision a of section 5 of section 4 of chap- 28 ter 576 of the laws of 1974, constituting the emergency tenant 29 protection act of nineteen seventy-four, is REPEALED. 30 § 4. Subparagraph (k) of paragraph 2 of subdivision e of section 31 26-403 of the administrative code of the city of New York is REPEALED. 32 § 5. Section 26-504.2 of the administrative code of the city of New 33 York is REPEALED. 34 § 6. Any housing accommodations that prior to the effective date of 35 this act were excluded from coverage from the emergency tenant 36 protection act of nineteen seventy-four, the emergency housing rent 37 control law or the administrative code of the city of New York pursuant 38 to the provisions of law repealed by sections two, three, four and five 39 of this act, and where such housing accommodations were located outside 40 the city of New York and were rented to a tenant between January 1, 2015 41 and the effective date of this act for less than $3,500.00 per month 42 regardless of any subsequent payment of a higher monthly rent, or were 43 located within the city of New York and were rented to a tenant between 44 January 1, 2015 and the effective date of this act for less than 45 $5,000.00 per month, regardless of any subsequent payment of a higher 46 monthly rent, shall be subject to the provisions of such act, law or 47 administrative code, respectively. Notwithstanding the provisions of 48 any lease or rental agreement, the legal regulated rent or maximum 49 collectible rent of any housing accommodation excluded from regulation 50 prior to the effective date of this act by reason of the provisions 51 repealed by sections two, three, four and five of this act and made 52 subject to regulation shall be the actual rent paid by a tenant on 53 December 31, 2016 or, if no rent was paid for such accommodation on 54 December 31, 2016, the most recent actual rent paid by a tenant for such 55 accommodation prior to December 31, 2016, subject to further adjustment 56 in accordance with applicable provisions of law.A. 5202 16 1 § 7. Paragraph 14 of subdivision c of section 26-511 of the adminis- 2 trative code of the city of New York, as amended by section 12 of part A 3 of chapter 20 of the laws of 2015, is amended to read as follows: 4 (14) provides that where the amount of rent charged to and paid by the 5 tenant is less than the legal regulated rent for the housing accommo- 6 dation, the amount of rent for such housing accommodation which may be 7 charged upon renewal or upon vacancy thereof, may, at the option of the 8 owner, be based upon such previously established legal regulated rent, 9 as adjusted by the most recent applicable guidelines increases and any 10 other increases authorized by law. [Such housing accommodation shall be11excluded from the provisions of this code pursuant to section 26-504.212of this chapter when, subsequent to vacancy: (i) such legal regulated13rent prior to vacancy is two thousand five hundred dollars per month, or14more, for any housing accommodation that is or becomes vacant after the15effective date of the rent act of 2011 but prior to the effective date16of the rent act of 2015 or (ii) such legal regulated rent is two thou-17sand seven hundred dollars per month or more, provided, however that on18January 1, 2016, and annually thereafter, the maximum legal regulated19rent for this deregulation threshold shall be adjusted by the same20percentage as the most recent one year renewal adjustment as adjusted by21the relevant rent guidelines board, for any housing accommodation that22is or becomes vacant on or after the rent act of 2015.] 23 § 8. Subdivision (a-2) of section 10 of section 4 of chapter 576 of 24 the laws of 1974 constituting the emergency tenant protection act of 25 nineteen seventy-four, as amended by section 11 of part A of chapter 20 26 of the laws of 2015, is amended to read as follows: 27 (a-2) Provides that where the amount of rent charged to and paid by 28 the tenant is less than the legal regulated rent for the housing accom- 29 modation, the amount of rent for such housing accommodation which may be 30 charged upon renewal or upon vacancy thereof, may, at the option of the 31 owner, be based upon such previously established legal regulated rent, 32 as adjusted by the most recent applicable guidelines increases and other 33 increases authorized by law. [Such housing accommodation shall be34excluded from the provisions of this act pursuant to paragraph thirteen35of subdivision a of section five of this act when subsequent to vacancy:36(i) such legal regulated rent is two thousand five hundred dollars per37month, or more, for any housing accommodation that is, or becomes,38vacant after the effective date of the rent act of 2011 but prior to the39effective date of the rent act of 2015 or (ii) such legal regulated rent40is two thousand seven hundred dollars per month or more for any housing41accommodation that is or becomes vacant on or after the rent act of422015; starting on January 1, 2016, and annually thereafter, the maximum43legal regulated rent for this deregulation threshold, shall also be44increased by the same percent as the most recent one year renewal45adjustment, adopted by the applicable rent guidelines board pursuant to46the rent stabilization law.] 47 § 9. This act shall take effect immediately; provided, however, that: 48 (a) the amendments to section 26-511 of chapter 4 of title 26 of the 49 administrative code of the city of New York made by section seven of 50 this act shall expire on the same date as such law expires and shall not 51 affect the expiration of such law as provided under section 26-520 of 52 such law; and 53 (b) the amendments to subdivision (a-2) of section 10 of section 4 of 54 the emergency tenant protection act of nineteen seventy-four made by 55 section eight of this act shall expire on the same date as such actA. 5202 17 1 expires and shall not affect the expiration of such act as provided in 2 section 17 of chapter 576 of the laws of 1974. 3 PART H 4 Section 1. Subdivision (a-2) of section 10 of section 4 of chapter 576 5 of the laws of 1974, constituting the emergency tenant protection act of 6 nineteen seventy-four, as amended by section 11 of part A of chapter 20 7 of the laws of 2015, is amended to read as follows: 8 (a-2) Provides that where the amount of rent charged to and paid by 9 the tenant is less than the legal regulated rent for the housing accom- 10 modation, the amount of rent for such housing accommodation which may be 11 charged [upon renewal or] upon vacancy thereof, may, at the option of 12 the owner, be based upon such previously established legal regulated 13 rent, as adjusted by [the most recent] all applicable guidelines 14 increases and other increases authorized by law; provided, however, that 15 such vacancy shall not be caused by the failure of the owner or an agent 16 of the owner, to maintain the housing accommodation in compliance with 17 the warranty of habitability set forth in subdivision one of section two 18 hundred thirty-five-b of the real property law. [Such housing accommo-19dation shall be excluded from the provisions of this act pursuant to20paragraph thirteen of subdivision a of section five of this act when21subsequent to vacancy: (i) such legal regulated rent is two thousand22five hundred dollars per month, or more, for any housing accommodation23that is, or becomes, vacant after the effective date of the rent act of242011 but prior to the effective date of the rent act of 2015 or (ii)25such legal regulated rent is two thousand seven hundred dollars per26month or more for any housing accommodation that is or becomes vacant on27or after the rent act of 2015; starting on January 1, 2016, and annually28thereafter, the maximum legal regulated rent for this deregulation29threshold, shall also be increased by the same percent as the most30recent one year renewal adjustment, adopted by the applicable rent31guidelines board pursuant to the rent stabilization law.] 32 § 2. Paragraph 14 of subdivision c of section 26-511 of the adminis- 33 trative code of the city of New York, as amended by section 12 of part A 34 of chapter 20 of the laws of 2015, is amended to read as follows: 35 (14) provides that where the amount of rent charged to and paid by the 36 tenant is less than the legal regulated rent for the housing accommo- 37 dation, the amount of rent for such housing accommodation which may be 38 charged [upon renewal or] upon vacancy thereof, may, at the option of 39 the owner, be based upon such previously established legal regulated 40 rent, as adjusted by the most recent applicable guidelines increases and 41 any other increases authorized by law; provided, however, that such 42 vacancy shall not be caused by the failure of the owner or an agent of 43 the owner, to maintain the housing accommodation in compliance with the 44 warranty of habitability set forth in subdivision one of section two 45 hundred thirty-five-b of the real property law. [Such housing accommo-46dation shall be excluded from the provisions of this code pursuant to47section 26-504.2 of this chapter when, subsequent to vacancy: (i) such48legal regulated rent prior to vacancy is two thousand five hundred49dollars per month, or more, for any housing accommodation that is or50becomes vacant after the effective date of the rent act of 2011 but51prior to the effective date of the rent act of 2015 or (ii) such legal52regulated rent is two thousand seven hundred dollars per month or more,53provided, however that on January 1, 2016, and annually thereafter, the54maximum legal regulated rent for this deregulation threshold shall beA. 5202 18 1adjusted by the same percentage as the most recent one year renewal2adjustment as adjusted by the relevant rent guidelines board, for any3housing accommodation that is or becomes vacant on or after the rent act4of 2015.] 5 § 3. This act shall take effect immediately; provided, however, that 6 the amendments to section 10 of the emergency tenant protection act of 7 nineteen seventy-four made by section one of this act shall expire on 8 the same date as such act expires and shall not affect the expiration of 9 such act as provided in section 17 of chapter 576 of the laws of 1974; 10 and provided, further, that the amendments to section 26-511 of the rent 11 stabilization law of nineteen hundred sixty-nine made by section two of 12 this act shall expire on the same date as such law expires and shall not 13 affect the expiration of such law as provided under section 26-520 of 14 such law. 15 PART I 16 Section 1. Paragraph 6-a of subdivision c of section 26-511 of the 17 administrative code of the city of New York is amended to read as 18 follows: 19 (6-a) provides criteria whereby as an alternative to the hardship 20 application provided under paragraph six of this subdivision owners of 21 buildings acquired by the same owner or a related entity owned by the 22 same principals [three] six years prior to the date of application may 23 apply to the division for increases in excess of the level of applicable 24 guideline increases established under this law based on a finding by the 25 commissioner that such guideline increases are not sufficient to enable 26 the owner to maintain an annual gross rent income for such building 27 which exceeds the annual operating expenses of such building by a sum 28 equal to at least five percent of such gross rent. For the purposes of 29 this paragraph, operating expenses shall consist of the actual, reason- 30 able, costs of fuel, labor, utilities, taxes, other than income or 31 corporate franchise taxes, fees, permits, necessary contracted services 32 and non-capital repairs, insurance, parts and supplies, management fees 33 and other administrative costs and mortgage interest. For the purposes 34 of this paragraph, mortgage interest shall be deemed to mean interest on 35 a bona fide mortgage including an allocable portion of charges related 36 thereto. Criteria to be considered in determining a bona fide mortgage 37 other than an institutional mortgage shall include; condition of the 38 property, location of the property, the existing mortgage market at the 39 time the mortgage is placed, the term of the mortgage, the amortization 40 rate, the principal amount of the mortgage, security and other terms and 41 conditions of the mortgage. The commissioner shall set a rental value 42 for any unit occupied by the owner or a person related to the owner or 43 unoccupied at the owner's choice for more than one month at the last 44 regulated rent plus the minimum number of guidelines increases or, if no 45 such regulated rent existed or is known, the commissioner shall impute a 46 rent consistent with other rents in the building. The amount of hardship 47 increase shall be such as may be required to maintain the annual gross 48 rent income as provided by this paragraph. The division shall not grant 49 a hardship application under this paragraph or paragraph six of this 50 subdivision for a period of three years subsequent to granting a hard- 51 ship application under the provisions of this paragraph. The collection 52 of any increase in the rent for any housing accommodation pursuant to 53 this paragraph shall not exceed six percent in any year from the effec- 54 tive date of the order granting the increase over the rent set forth inA. 5202 19 1 the schedule of gross rents, with collectability of any dollar excess 2 above said sum to be spread forward in similar increments and added to 3 the rent as established or set in future years. No application shall be 4 approved unless the owner's equity in such building exceeds five percent 5 of: (i) the arms length purchase price of the property; (ii) the cost of 6 any capital improvements for which the owner has not collected a 7 surcharge; (iii) any repayment of principal of any mortgage or loan used 8 to finance the purchase of the property or any capital improvements for 9 which the owner has not collected a surcharge and (iv) any increase in 10 the equalized assessed value of the property which occurred subsequent 11 to the first valuation of the property after purchase by the owner. For 12 the purposes of this paragraph, owner's equity shall mean the sum of (i) 13 the purchase price of the property less the principal of any mortgage or 14 loan used to finance the purchase of the property, (ii) the cost of any 15 capital improvement for which the owner has not collected a surcharge 16 less the principal of any mortgage or loan used to finance said improve- 17 ment, (iii) any repayment of the principal of any mortgage or loan used 18 to finance the purchase of the property or any capital improvement for 19 which the owner has not collected a surcharge, and (iv) any increase in 20 the equalized assessed value of the property which occurred subsequent 21 to the first valuation of the property after purchase by the owner. 22 § 2. Paragraph 5 of subdivision d of section 6 of section 4 of chapter 23 576 of the laws of 1974 enacting the emergency tenant protection act of 24 nineteen seventy-four, as amended by chapter 102 of the laws of 1984, is 25 amended to read as follows: 26 (5) as an alternative to the hardship application provided under para- 27 graph four of this subdivision, owners of buildings acquired by the same 28 owner or a related entity owned by the same principals [three] six years 29 prior to the date of application may apply to the division for increases 30 in excess of the level of applicable guideline increases established 31 under this law based on a finding by the commissioner that such guide- 32 line increases are not sufficient to enable the owner to maintain an 33 annual gross rent income for such building which exceeds the annual 34 operating expenses of such building by a sum equal to at least five 35 percent of such gross rent. For the purposes of this paragraph, operat- 36 ing expenses shall consist of the actual, reasonable, costs of fuel, 37 labor, utilities, taxes, other than income or corporate franchise taxes, 38 fees, permits, necessary contracted services and non-capital repairs, 39 insurance, parts and supplies, management fees and other administrative 40 costs and mortgage interest. For the purposes of this paragraph, mort- 41 gage interest shall be deemed to mean interest on a bona fide mortgage 42 including an allocable portion of charges related thereto. Criteria to 43 be considered in determining a bona fide mortgage other than an institu- 44 tional mortgage shall include; condition of the property, location of 45 the property, the existing mortgage market at the time the mortgage is 46 placed, the term of the mortgage, the amortization rate, the principal 47 amount of the mortgage, security and other terms and conditions of the 48 mortgage. The commissioner shall set a rental value for any unit occu- 49 pied by the owner or a person related to the owner or unoccupied at the 50 owner's choice for more than one month at the last regulated rent plus 51 the minimum number of guidelines increases or, if no such regulated rent 52 existed or is known, the commissioner shall impute a rent consistent 53 with other rents in the building. The amount of hardship increase shall 54 be such as may be required to maintain the annual gross rent income as 55 provided by this paragraph. The division shall not grant a hardship 56 application under this paragraph or paragraph four of this subdivisionA. 5202 20 1 for a period of three years subsequent to granting a hardship applica- 2 tion under the provisions of this paragraph. The collection of any 3 increase in the rent for any housing accommodation pursuant to this 4 paragraph shall not exceed six percent in any year from the effective 5 date of the order granting the increase over the rent set forth in the 6 schedule of gross rents, with collectability of any dollar excess above 7 said sum to be spread forward in similar increments and added to the 8 rent as established or set in future years. No application shall be 9 approved unless the owner's equity in such building exceeds five percent 10 of: (i) the arms length purchase price of the property; (ii) the cost of 11 any capital improvements for which the owner has not collected a 12 surcharge; (iii) any repayment of principal of any mortgage or loan used 13 to finance the purchase of the property or any capital improvements for 14 which the owner has not collected a surcharge; and (iv) any increase in 15 the equalized assessed value of the property which occurred subsequent 16 to the first valuation of the property after purchase by the owner. For 17 the purposes of this paragraph, owner's equity shall mean the sum of (i) 18 the purchase price of the property less the principal of any mortgage or 19 loan used to finance the purchase of the property, (ii) the cost of any 20 capital improvement for which the owner has not collected a surcharge 21 less the principal of any mortgage or loan used to finance said improve- 22 ment, (iii) any repayment of the principal of any mortgage or loan used 23 to finance the purchase of the property or any capital improvement for 24 which the owner has not collected a surcharge, and (iv) any increase in 25 the equalized assessed value of the property which occurred subsequent 26 to the first valuation of the property after purchase by the owner. 27 § 3. This act shall take effect immediately; provided that: 28 a. the amendments to section 26-511 of chapter 4 of title 26 of the 29 administrative code of the city of New York made by section one of this 30 act shall expire on the same date as such law expires and shall not 31 affect the expiration of such law as provided under section 26-520 of 32 such law; and 33 b. the amendments to section 6 of the emergency tenant protection act 34 of nineteen seventy-four made by section two of this act shall expire on 35 the same date as such act expires and shall not affect the expiration of 36 such act as provided in section 17 of chapter 576 of the laws of 1974. 37 PART J 38 Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section 39 26-405 of the administrative code of the city of New York, as amended by 40 section 31 of part A of chapter 20 of the laws of 2015, is amended to 41 read as follows: 42 (g) (i) Collection of surcharges to the maximum rent authorized pursu- 43 ant to item (ii) of this subparagraph shall cease when the owner has 44 recovered the cost of the major capital improvement; 45 (ii) There has been since July first, nineteen hundred seventy, a 46 major capital improvement [required for the operation, preservation or47maintenance of the structure. An adjustment under this subparagraph (g)48for any order of the commissioner issued after the effective date of the49rent act of 2015 shall be in an amount sufficient to amortize the cost50of the improvements pursuant to this subparagraph (g) over an eight-year51period for buildings with thirty-five or fewer units or a nine year52period for buildings with more than thiry-five units,]; provided that 53 the commissioner finds that such improvements are deemed depreciable 54 under the internal revenue code and such improvements are required forA. 5202 21 1 the operation, preservation or maintenance of the structure. The 2 increase permitted for such capital improvement shall be collected as a 3 monthly surcharge to the maximum rent. It shall be separately designated 4 and billed as such and shall not be compounded by any other adjustment 5 to the maximum rent. The surcharge allocable to each apartment shall be 6 an amount equal to the cost of the improvement divided by eighty-four, 7 divided by the number of rooms in the building, and then multiplied by 8 the number of rooms in such apartment; provided that the surcharge allo- 9 cable to any apartment in any one year may not exceed an amount equal to 10 six percent of the monthly rent collected by the owner for such apart- 11 ment as set forth in the schedule of gross rents. Any excess above said 12 six percent shall be carried forward and collected in future years as a 13 further surcharge not to exceed an additional six percent in any one 14 year period until the total surcharge equals the amount it would have 15 been if the aforementioned six percent limitation did not apply; or 16 § 2. Paragraph 1 of subdivision g of section 26-405 of the administra- 17 tive code of the city of New York is amended by adding a new subpara- 18 graph (p) to read as follows: 19 (p) Notwithstanding subparagraph (g) or (k) of this paragraph, there 20 shall be no adjustment for any major capital improvement or for any 21 other expenditures to improve, restore or preserve the quality of a 22 structure if such major capital improvement or such other expenditure is 23 funded in any part from moneys provided by the New York state energy 24 research and development authority. 25 § 3. Subparagraph (k) of paragraph 1 of subdivision g of section 26 26-405 of the administrative code of the city of New York, as amended by 27 chapter 749 of the laws of 1990, is amended to read as follows: 28 (k) The landlord has incurred, since January first, nineteen hundred 29 seventy, in connection with and in addition to a concurrent major capi- 30 tal improvement pursuant to subparagraph (g) of this paragraph, other 31 expenditures to improve, restore or preserve the quality of the struc- 32 ture. An adjustment under this subparagraph shall be granted only if 33 such improvements represent an expenditure equal to at least ten per 34 centum of the total operating and maintenance expenses for the preceding 35 year. An adjustment under this subparagraph shall be in addition to any 36 adjustment granted for the concurrent major capital improvement and 37 shall be [in an amount sufficient to amortize the cost of the improve-38ments pursuant to this subparagraph over a seven-year period] imple- 39 mented in the same manner as such major capital improvement as a further 40 surcharge to the maximum rent. 41 § 4. Section 26-405 of the administrative code of the city of New 42 York is amended by adding a new subdivision n to read as follows: 43 n. (1) No major capital improvement rent increase will be approved by 44 the division of housing and community renewal unless the work performed 45 is an enhancement or upgrade to a housing accommodation or service ther- 46 ein; or is an addition to such housing accommodation and otherwise 47 eligible according to the prerequisites for major capital improvement 48 rent increases. Any repair or replacement intended to maintain an 49 existing service shall not be eligible for a major capital improvement 50 rent increase. 51 (2) No application for a major capital improvement rent increase may 52 be approved if there exist any outstanding hazardous violations at the 53 time of the consideration of such application, as determined pursuant to 54 regulations of the division of housing and community renewal or any 55 agency administering and enforcing a building code in the jurisdiction 56 in which the property is located, unless it is determined by the divi-A. 5202 22 1 sion of housing and community renewal that such work is essential to the 2 alleviation of the violations and such approval is consistent with the 3 provisions of this section. Except in the case of emergency or good 4 cause, the owner of the property shall file, not less than thirty days 5 before the commencement of the improvement, with the division of housing 6 and community renewal a statement containing information outlining the 7 scope of work, expected date of completion for such work and an affida- 8 vit setting forth the following information: 9 (a) every owner of record and owner of a substantial interest in the 10 property or entity owning the property or sponsoring the improvement; 11 and 12 (b) a statement that none of such persons had, within the five years 13 prior to the improvement, been found to have harassed or unlawfully 14 evicted tenants by judgment or determination of a court or agency under 15 the penal law, any state or local law regulating rents or any state or 16 local law relating to harassment of tenants or unlawful eviction. 17 Upon receipt of the scope of work and affidavit provided for herein, 18 the division of housing and community renewal shall provide the tenants 19 in occupancy in such buildings with such information. The division of 20 housing and community renewal shall, in addition, implement procedures 21 including, but not limited to, eliciting tenant comments to determine 22 whether major capital improvement rehabilitation work has been satisfac- 23 torily completed. No major capital improvement rent increase shall 24 become effective until any defective or deficient rehabilitation work 25 has been cured. 26 § 5. Paragraph 6 of subdivision c of section 26-511 of the administra- 27 tive code of the city of New York, as amended by section 29 of part A of 28 chapter 20 of the laws of 2015, is amended to read as follows: 29 (6) provides criteria whereby the commissioner may act upon applica- 30 tions by owners for increases in excess of the level of fair rent 31 increase established under this law provided, however, that such crite- 32 ria shall provide [(a)] as to hardship applications, for a finding that 33 the level of fair rent increase is not sufficient to enable the owner to 34 maintain approximately the same average annual net income (which shall 35 be computed without regard to debt service, financing costs or manage- 36 ment fees) for the three year period ending on or within six months of 37 the date of an application pursuant to such criteria as compared with 38 annual net income, which prevailed on the average over the period nine- 39 teen hundred sixty-eight through nineteen hundred seventy, or for the 40 first three years of operation if the building was completed since nine- 41 teen hundred sixty-eight or for the first three fiscal years after a 42 transfer of title to a new owner provided the new owner can establish to 43 the satisfaction of the commissioner that he or she acquired title to 44 the building as a result of a bona fide sale of the entire building and 45 that the new owner is unable to obtain requisite records for the fiscal 46 years nineteen hundred sixty-eight through nineteen hundred seventy 47 despite diligent efforts to obtain same from predecessors in title and 48 further provided that the new owner can provide financial data covering 49 a minimum of six years under his or her continuous and uninterrupted 50 operation of the building to meet the three year to three year compar- 51 ative test periods herein provided[; and (b) as to completed building-52wide major capital improvements, for a finding that such improvements53are deemed depreciable under the Internal Revenue Code and that the cost54is to be amortized over an eight-year period for a building with thir-55ty-five or fewer housing accommodations, or a nine-year period for a56building with more than thirty-five housing accommodations, for anyA. 5202 23 1determination issued by the division of housing and community renewal2after the effective date of the rent act of 2015, based upon cash3purchase price exclusive of interest or service charges]. Notwithstand- 4 ing anything to the contrary contained herein, no hardship increase 5 granted pursuant to this paragraph shall, when added to the annual gross 6 rents, as determined by the commissioner, exceed the sum of, (i) the 7 annual operating expenses, (ii) an allowance for management services as 8 determined by the commissioner, (iii) actual annual mortgage debt 9 service (interest and amortization) on its indebtedness to a lending 10 institution, an insurance company, a retirement fund or welfare fund 11 which is operated under the supervision of the banking or insurance laws 12 of the state of New York or the United States, and (iv) eight and one- 13 half percent of that portion of the fair market value of the property 14 which exceeds the unpaid principal amount of the mortgage indebtedness 15 referred to in subparagraph (iii) of this paragraph. Fair market value 16 for the purposes of this paragraph shall be six times the annual gross 17 rent. The collection of any increase in the stabilized rent for any 18 apartment pursuant to this paragraph shall not exceed six percent in any 19 year from the effective date of the order granting the increase over the 20 rent set forth in the schedule of gross rents, with collectability of 21 any dollar excess above said sum to be spread forward in similar incre- 22 ments and added to the stabilized rent as established or set in future 23 years; 24 § 6. Subdivision c of section 26-511 of the administrative code of the 25 city of New York is amended by adding three new paragraphs 6-b, 6-c, and 26 6-d to read as follows: 27 (6-b) provides criteria whereby the commissioner may act upon applica- 28 tion by owners for increases in excess of the level of fair rent 29 increase established under this law provided however, that such criteria 30 shall provide that: 31 (1) no major capital improvement rent increase will be approved by the 32 division of housing and community renewal unless the work performed is 33 an enhancement or upgrade to a housing accommodation or service therein; 34 or is an addition to such housing accommodation and otherwise eligible 35 according to the prerequisites for major capital improvement rent 36 increases. Any repair or replacement intended to maintain an existing 37 service shall not be eligible for a major capital improvement rent 38 increase. 39 (2) no application for a major capital improvement rent increase may 40 be approved if there exist any outstanding hazardous violations at the 41 time of the consideration of such application, as determined pursuant to 42 regulations of the division of housing and community renewal or any 43 agency administering and enforcing a building code in the jurisdiction 44 in which the property is located, unless it is determined by the divi- 45 sion of housing and community renewal that such work is essential to the 46 alleviation of the violations and such approval is consistent with the 47 provisions of this section. Except in the case of emergency or good 48 cause, the owner of the property shall file, not less than thirty days 49 before the commencement of the improvement, with the division of housing 50 and community renewal a statement containing information outlining the 51 scope of work, expected date of completion for such work and an affida- 52 vit setting forth the following information: 53 (a) every owner of record and owner of a substantial interest in the 54 property or entity owning the property or sponsoring the improvement; 55 andA. 5202 24 1 (b) a statement that none of such persons had, within the five years 2 prior to the improvement, been found to have harassed or unlawfully 3 evicted tenants by judgment or determination of a court or agency under 4 the penal law, any state or local law regulating rents or any state or 5 local law relating to harassment of tenants or unlawful eviction. 6 Upon receipt of the scope of work and affidavit provided for herein, 7 the division of housing and community renewal shall provide the tenants 8 in occupancy in such buildings with such information. The division of 9 housing and community renewal shall, in addition, implement procedures 10 including, but not limited to, eliciting tenant comments to determine 11 whether major capital improvement rehabilitation work has been satisfac- 12 torily completed. No major capital improvement rent increase shall 13 become effective until any defective or deficient rehabilitation work 14 has been cured. 15 (6-c) the increase permitted for such capital improvement shall be 16 collected as a monthly surcharge to the legal regulated rent. It shall 17 be separately designated and billed as such and shall not be compounded 18 by any annual adjustment of the level of fair rent provided for under 19 subdivision b of section 26-510 of this law. The surcharge allocable to 20 each apartment shall be an amount equal to the cost of the improvement 21 divided by eighty-four, divided by the number of rooms in the building, 22 and then multiplied by the number of rooms in such apartment; provided 23 that the surcharge allocable to any apartment, in any one year may not 24 exceed an amount equal to six percent of the monthly rent collected by 25 the owner for such apartment as set forth in the schedule of gross 26 rents. Any excess above said six percent shall be carried forward and 27 collected in future years as a further surcharge not to exceed an addi- 28 tional six percent in any one year period until the total surcharge 29 equals the amount it would have been if the aforementioned six percent 30 limitation did not apply. 31 (6-d) collection of surcharges in excess of the level of fair rent 32 authorized pursuant to paragraph six-b of this subdivision shall cease 33 when the owner has recovered the cost of the major capital improvement. 34 § 7. Paragraph 3 of subdivision d of section 6 of section 4 of chapter 35 576 of the laws of 1974, constituting the emergency tenant protection 36 act of nineteen seventy-four, as amended by section 30 of part A of 37 chapter 20 of the laws of 2015, is amended to read as follows: 38 (3) (i) collection of surcharges in addition to the legal regulated 39 rent authorized pursuant to subparagraph (ii) of this paragraph shall 40 cease when the owner has recovered the cost of the major capital 41 improvement; 42 (ii) there has been since January first, nineteen hundred seventy-four 43 a major capital improvement [required for the operation, preservation or44maintenance of the structure. An adjustment under this paragraph shall45be in an amount sufficient to amortize the cost of the improvements46pursuant to this paragraph over an eight-year period for a building with47thirty-five or fewer housing accommodations, or a nine-year period for a48building with more than thirty-five housing accommodations, for any49determination issued by the division of housing and community renewal50after the effective date of the rent act of 2015, or]; provided that the 51 commissioner finds that such improvements are deemed depreciable under 52 the internal revenue code and such improvements are required for the 53 operation, preservation or maintenance of the structure. The increase 54 permitted for such capital improvement shall be collected as a monthly 55 surcharge to the legal regulated rent. It shall be separately designated 56 and billed as such and shall not be compounded by any annual rentA. 5202 25 1 adjustment authorized by the rent guidelines board under this act. The 2 surcharge allocable to each apartment shall be an amount equal to the 3 cost of the improvement divided by eighty-four, divided by the number of 4 rooms in the building, and then multiplied by the number of rooms in 5 such apartment; provided that the surcharge allocable to any apartment 6 in any one year may not exceed an amount equal to six percent of the 7 monthly rent collected by the owner for such apartment as set forth in 8 the schedule of gross rents. Any excess above said six percent shall be 9 carried forward and collected in future years as a further surcharge not 10 to exceed an additional six percent in any one year period until the 11 total surcharge equals the amount it would have been if the aforemen- 12 tioned six percent limitation did not apply; or 13 § 8. Section 6 of section 4 of chapter 576 of the laws of 1974, 14 constituting the emergency tenant protection act of nineteen seventy- 15 four, is amended by adding a new subdivision d-1 to read as follows: 16 d-1. (1) No major capital improvement rent increase will be approved 17 by the division of housing and community renewal unless the work 18 performed is an enhancement or upgrade to a housing accommodation or 19 service therein; or is an addition to such housing accommodation and 20 otherwise eligible according to the prerequisites for major capital 21 improvement rent increases. Any repair or replacement intended to main- 22 tain an existing service shall not be eligible for a major capital 23 improvement rent increase. 24 (2) No application for a major capital improvement rent increase may 25 be approved if there exist any outstanding hazardous violations at the 26 time of the consideration of such application, as determined pursuant to 27 regulations of the division of housing and community renewal or any 28 agency administering and enforcing a building code in the jurisdiction 29 in which the property is located, unless it is determined by the divi- 30 sion of housing and community renewal that such work is essential to the 31 alleviation of the violations and such approval is consistent with the 32 provisions of this section. Except in the case of emergency or good 33 cause, the owner of the property shall file, not less than thirty days 34 before the commencement of the improvement, with the division of housing 35 and community renewal a statement containing information outlining the 36 scope of work, expected date of completion for such work and an affida- 37 vit setting forth the following information: 38 (a) every owner of record and owner of a substantial interest in the 39 property or entity owning the property or sponsoring the improvement; 40 and 41 (b) a statement that none of such persons had, within the five years 42 prior to the improvement, been found to have harassed or unlawfully 43 evicted tenants by judgment or determination of a court or agency under 44 the penal law, any state or local law regulating rents or any state or 45 local law relating to harassment of tenants or unlawful eviction. 46 Upon receipt of the scope of work and affidavit provided for herein, 47 the division of housing and community renewal shall provide the tenants 48 in occupancy in such buildings with such information. The division of 49 housing and community renewal shall, in addition, implement procedures 50 including, but not limited to, eliciting tenant comments to determine 51 whether major capital improvement rehabilitation work has been satisfac- 52 torily completed. No major capital improvement rent increase shall 53 become effective until any defective or deficient rehabilitation work 54 has been cured. 55 § 9. Subdivision d of section 6 of section 4 of chapter 576 of the 56 laws of 1974 constituting the emergency tenant protection act of nine-A. 5202 26 1 teen seventy-four is amended by adding a new paragraph 6 to read as 2 follows: 3 (6) Notwithstanding paragraph three of this subdivision there shall be 4 no adjustment for any major capital improvement funded in any part from 5 moneys provided by the New York state energy research and development 6 authority. 7 § 10. The second undesignated paragraph of paragraph (a) of subdivi- 8 sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the 9 emergency housing rent control law, as amended by section 25 of part B 10 of chapter 97 of the laws of 2011, subparagraph 7 as amended by section 11 32 of part A of chapter 20 of the laws of 2015, is amended to read as 12 follows: 13 No application for adjustment of maximum rent based upon a sales price 14 valuation shall be filed by the landlord under this subparagraph prior 15 to six months from the date of such sale of the property. In addition, 16 no adjustment ordered by the commission based upon such sales price 17 valuation shall be effective prior to one year from the date of such 18 sale. Where, however, the assessed valuation of the land exceeds four 19 times the assessed valuation of the buildings thereon, the commission 20 may determine a valuation of the property equal to five times the equal- 21 ized assessed valuation of the buildings, for the purposes of this 22 subparagraph. The commission may make a determination that the valuation 23 of the property is an amount different from such equalized assessed 24 valuation where there is a request for a reduction in such assessed 25 valuation currently pending; or where there has been a reduction in the 26 assessed valuation for the year next preceding the effective date of the 27 current assessed valuation in effect at the time of the filing of the 28 application. Net annual return shall be the amount by which the earned 29 income exceeds the operating expenses of the property, excluding mort- 30 gage interest and amortization, and excluding allowances for obsoles- 31 cence and reserves, but including an allowance for depreciation of two 32 per centum of the value of the buildings exclusive of the land, or the 33 amount shown for depreciation of the buildings in the latest required 34 federal income tax return, whichever is lower; provided, however, that 35 (1) no allowance for depreciation of the buildings shall be included 36 where the buildings have been fully depreciated for federal income tax 37 purposes or on the books of the owner; or (2) the landlord who owns no 38 more than four rental units within the state has not been fully compen- 39 sated by increases in rental income sufficient to offset unavoidable 40 increases in property taxes, fuel, utilities, insurance and repairs and 41 maintenance, excluding mortgage interest and amortization, and excluding 42 allowances for depreciation, obsolescence and reserves, which have 43 occurred since the federal date determining the maximum rent or the date 44 the property was acquired by the present owner, whichever is later; or 45 (3) the landlord operates a hotel or rooming house or owns a cooperative 46 apartment and has not been fully compensated by increases in rental 47 income from the controlled housing accommodations sufficient to offset 48 unavoidable increases in property taxes and other costs as are allocable 49 to such controlled housing accommodations, including costs of operation 50 of such hotel or rooming house, but excluding mortgage interest and 51 amortization, and excluding allowances for depreciation, obsolescence 52 and reserves, which have occurred since the federal date determining the 53 maximum rent or the date the landlord commenced the operation of the 54 property, whichever is later; or (4) the landlord and tenant voluntarily 55 enter into a valid written lease in good faith with respect to any hous- 56 ing accommodation, which lease provides for an increase in the maximumA. 5202 27 1 rent not in excess of fifteen per centum and for a term of not less than 2 two years, except that where such lease provides for an increase in 3 excess of fifteen per centum, the increase shall be automatically 4 reduced to fifteen per centum; or (5) the landlord and tenant by mutual 5 voluntary written agreement agree to a substantial increase or decrease 6 in dwelling space or a change in the services, furniture, furnishings or 7 equipment provided in the housing accommodations; provided that an owner 8 shall be entitled to a rent increase where there has been a substantial 9 modification or increase of dwelling space or an increase in the 10 services, or installation of new equipment or improvements or new furni- 11 ture or furnishings provided in or to a tenant's housing accommodation. 12 The permanent increase in the maximum rent for the affected housing 13 accommodation shall be one-fortieth, in the case of a building with 14 thirty-five or fewer housing accommodations, or one-sixtieth, in the 15 case of a building with more than thirty-five housing accommodations 16 where such permanent increase takes effect on or after September twen- 17 ty-fourth, two thousand eleven, of the total cost incurred by the land- 18 lord in providing such modification or increase in dwelling space, 19 services, furniture, furnishings or equipment, including the cost of 20 installation, but excluding finance charges provided further that an 21 owner who is entitled to a rent increase pursuant to this clause shall 22 not be entitled to a further rent increase based upon the installation 23 of similar equipment, or new furniture or furnishings within the useful 24 life of such new equipment, or new furniture or furnishings. The owner 25 shall give written notice to the commission of any such adjustment 26 pursuant to this clause; or (6) there has been, since March first, nine- 27 teen hundred fifty, an increase in the rental value of the housing 28 accommodations as a result of a substantial rehabilitation of the build- 29 ing or housing accommodation therein which materially adds to the value 30 of the property or appreciably prolongs its life, excluding ordinary 31 repairs, maintenance and replacements; or (7) (i) collection of 32 surcharges to the maximum rent authorized pursuant to item (ii) of this 33 clause shall cease when the owner has recovered the cost of the major 34 capital improvement; (ii) there has been since March first, nineteen 35 hundred fifty, a major capital improvement [required for the operation,36preservation or maintenance of the structure; which for any order of the37commissioner issued after the effective date of the rent act of 2015 the38cost of such improvement shall be amortized over an eight-year period39for buildings with thirty-five or fewer units or a nine year period for40buildings with more than thiry-five units, or]; provided that the 41 commissioner finds that such improvements are deemed depreciable under 42 the internal revenue code and such improvements are required for the 43 operation, preservation or maintenance of the structure. The increase 44 permitted for such capital improvement shall be collected as a monthly 45 surcharge to the maximum rent. It shall be separately designated and 46 billed as such and shall not be compounded by any other adjustment to 47 the maximum rent. The surcharge allocable to each apartment shall be an 48 amount equal to the cost of the improvement divided by eighty-four, 49 divided by the number of rooms in the building, and then multiplied by 50 the number of rooms in such apartment; provided that the surcharge allo- 51 cable to any apartment in any one year may not exceed an amount equal to 52 six percent of the monthly rent collected by the owner for such apart- 53 ment as set forth in the schedule of gross rents. Any excess above said 54 six percent shall be carried forward and collected in future years as a 55 further surcharge not to exceed an additional six percent in any one 56 year period until the total surcharge equals the amount it would haveA. 5202 28 1 been if the aforementioned six percent limitation did not apply; or (8) 2 there has been since March first, nineteen hundred fifty, in structures 3 containing more than four housing accommodations, other improvements 4 made with the express consent of the tenants in occupancy of at least 5 seventy-five per centum of the housing accommodations, provided, howev- 6 er, that no adjustment granted hereunder shall exceed fifteen per centum 7 unless the tenants have agreed to a higher percentage of increase, as 8 herein provided; or (9) there has been, since March first, nineteen 9 hundred fifty, a subletting without written consent from the landlord or 10 an increase in the number of adult occupants who are not members of the 11 immediate family of the tenant, and the landlord has not been compen- 12 sated therefor by adjustment of the maximum rent by lease or order of 13 the commission or pursuant to the federal act; or (10) the presence of 14 unique or peculiar circumstances materially affecting the maximum rent 15 has resulted in a maximum rent which is substantially lower than the 16 rents generally prevailing in the same area for substantially similar 17 housing accommodations. 18 § 11. This act shall take effect immediately; provided that: 19 a. the amendments to section 26-405 of the city rent and rehabili- 20 tation law made by sections one, two, three and four of this act shall 21 remain in full force and effect only so long as the public emergency 22 requiring the regulation and control of residential rents and evictions 23 continues, as provided in subdivision 3 of section 1 of the local emer- 24 gency housing rent control act; 25 b. the amendments to section 26-511 of the rent stabilization law of 26 nineteen hundred sixty-nine made by sections five and six of this act 27 shall expire on the same date as such law expires and shall not affect 28 the expiration of such law as provided under section 26-520 of such law, 29 as from time to time amended; 30 c. the amendment to section 6 of the emergency tenant protection act 31 of nineteen seventy-four made by sections seven, eight and nine of this 32 act shall expire on the same date as such act expires and shall not 33 affect the expiration of such act as provided in section 17 of chapter 34 576 of the laws of 1974, as from time to time amended; and 35 d. the amendment to section 4 of the emergency housing rent control 36 law made by section ten of this act shall expire on the same date as 37 such law expires and shall not affect the expiration of such law as 38 provided in subdivision 2 of section 1 of chapter 274 of the laws of 39 1946. 40 PART K 41 Section 1. Paragraph 5 of subdivision a of section 26-405 of the 42 administrative code of the city of New York is amended to read as 43 follows: 44 (5) Where a maximum rent established pursuant to this chapter on or 45 after January first, nineteen hundred seventy-two, is higher than the 46 previously existing maximum rent, the landlord may not collect an 47 increase from a tenant in occupancy in any one year period of more than 48 the lesser of either seven and one-half percentum [increase from a49tenant in occupancy on such date in any one year period, provided howev-50er, that where] or an average of the previous five years of one-year 51 rent increases on rent stabilized apartments as established by the rent 52 guidelines board, pursuant to subdivision b of section 26-510 of this 53 title. If the period for which the rent is established exceeds one year, 54 regardless of how the collection thereof is averaged over such period,A. 5202 29 1 the rent the landlord shall be entitled to receive during the first 2 twelve months shall not be increased by more than the lesser of either 3 seven and one-half percentum or an average of the previous five years of 4 one-year rent increases on rent stabilized apartments as established by 5 the rent guidelines board, pursuant to subdivision b of section 26-510 6 of this title, over the previous rent [and]. Any additional annual rents 7 shall not exceed the lesser of either seven and one-half percentum or an 8 average of the previous five years of one-year rent increases on rent 9 stabilized apartments as established by the rent guidelines board, 10 pursuant to subdivision b of section 26-510 of this title, of the rent 11 paid during the previous year. Notwithstanding any of the foregoing 12 limitations in this paragraph five, maximum rent shall be increased if 13 ordered by the agency pursuant to subparagraphs (d), (e), (f), (g), (h), 14 (i), (k), [(l),] or (m) [or (n)] of paragraph one of subdivision g of 15 this section. [Commencing January first, nineteen hundred eighty, rent16adjustments pursuant to subparagraph (n) of paragraph one of subdivision17g of this section shall be excluded from the maximum rent when computing18the seven and one-half percentum increase authorized by this paragraph19five.] Where a housing accommodation is vacant on January first, nine- 20 teen hundred seventy-two, or becomes vacant thereafter by voluntary 21 surrender of possession by the tenants, the maximum rent established for 22 such accommodations may be collected. 23 § 2. Subparagraphs (l) and (n) of paragraph 1 of subdivision g of 24 section 26-405 of the administrative code of the city of New York are 25 REPEALED. 26 § 3. Section 4 of chapter 274 of the laws of 1946, constituting the 27 emergency housing rent control law, is amended by adding a new subdivi- 28 sion 9 to read as follows: 29 9. No annual rent increase authorized pursuant to this act shall 30 exceed the average of the previous five annual rental increases author- 31 ized by a rent guidelines board for a rent stabilized unit pursuant to 32 section 4 of the emergency tenant protection act of nineteen seventy- 33 four. 34 § 4. This act shall take effect on the one hundred eightieth day after 35 it shall have become a law; provided that the amendments to section 36 26-405 of the city rent and rehabilitation law made by section one of 37 this act shall remain in full force and effect only as long as the 38 public emergency requiring the regulation and control of residential 39 rents and evictions continues, as provided in subdivision 3 of section 1 40 of the local emergency housing rent control act; and provided that the 41 amendments to section 4 of the emergency housing rent control law made 42 by section three of this act shall expire on the same date as such law 43 expires and shall not affect the expiration of such law as provided in 44 subdivision 2 of section 1 of chapter 274 of the laws of 1946. 45 PART L 46 Section 1. The administrative code of the city of New York is amended 47 by adding a new section 26-416 to read as follows: 48 § 26-416 Surcharges for tenant-installed appliances. The imposition of 49 any surcharge for the installation or use of a tenant-installed appli- 50 ance is prohibited where the tenant pays for electric utility service. 51 § 2. This act shall take effect immediately; provided that section 52 26-416 of the city rent and rehabilitation law as added by section one 53 of this act shall remain in full force and effect only as long as the 54 public emergency requiring the regulation and control of residentialA. 5202 30 1 rents and evictions continues, as provided in subdivision 3 of section 1 2 of the local emergency housing rent control act. 3 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 4 sion, section or part of this act shall be adjudged by any court of 5 competent jurisdiction to be invalid, such judgment shall not affect, 6 impair, or invalidate the remainder thereof, but shall be confined in 7 its operation to the clause, sentence, paragraph, subdivision, section 8 or part thereof directly involved in the controversy in which such judg- 9 ment shall have been rendered. It is hereby declared to be the intent 10 of the legislature that this act would have been enacted even if such 11 invalid provisions had not been included herein. 12 § 4. This act shall take effect immediately provided, however, that 13 the applicable effective dates of Parts A through L of this act shall be 14 as specifically set forth in the last section of such Parts.
