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S1658Senate2009-2010 SessionSame asA540

Requires limited profit housing company to show maintenance of essential services before approval of rent increases

Sponsor Pedro Espada Jr.SD-33Affects Housing
Status
In Senate Committee
Housing, Construction And Community Development
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Housing, Construction And Community Development

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Who cares

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Sponsors

Primary sponsor
Pedro Espada Jr.

Senator · Senate District 33

No co-sponsors yet.

History

  1. Referred to housing, construction and community development
  2. Referred to housing, construction and community development

Companion bill

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

Title of bill

An act to amend the private housing finance law, in relation to defining "essential services" and conditioning approval of increase of maximum rentals upon maintenance of all essential services

Purpose

The purpose of this bill is to insure that rent increases in Mitchell-Lama buildings are only granted when the housing company or landlord is maintaining essential services or when the increases are conditioned upon their being restored. The bill provides that before any rent increase is approved in respect to a Mitchell-Lama building, the housing company applying for the increase must be found to be maintaining all essential services, and that no increase shall be approved where there is a certification that the dwelling accommodation is a fire hazard or is in a dangerous condition, or is detrimental to life or health or is occupied in violation of law. If essential services are not being maintained or if fire hazards or dangerous conditions exist, a rent increase may be approved contingent upon the restoration of essential services of removal of unsafe conditions in a reasonably short and fixed time period. This bill also contains a definition of essential services which indicates that such services include, but are not limited to, repairs, maintenance, and furnishing of light, heat, hot and cold water, telephone and elevator services, kitchen, bath and laundry facilities and privileges, as well as resident manager, superintendent and janitorial services, removal of refuse, park and recreation facilities, security safeguards, and community meeting facilities and nursery school rooms. The provisions of the bill would not apply with respect to services reduced or discontinued pursuant to the express consent of the division of housing and community renewal.

Justification

Mitchell-Lama buildings are operated on what is, in essence, a cost plus formula. Therefore, rentals are paid to a level necessary to maintain essential services. If rentals are inadequate, the housing company may apply for an increase in such rentals. There is, therefore, no excuse for a housing company or landlord not to provide essential services to tenants. It is particularly u~justified fro tenants to face a rent increase in a Mitchell-Lama building when essential services are not being maintained. The bill will insure that where landlords are guaranteed a specific rate of return, they are also, at the very least, compelled to provide essential services if an increase is to be granted. Since there may be situations where the landlord may need a rent increase in order to maintain essential services, or to cure dangerous conditions, a rent increase should be permissible contingent upon the necessary improvements being made in a short fixed period of time.

Legislative history

This is a new bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.