Prevents landlords from receiving a financial windfall from major capital improvements funded by the New York State energy and research development authority

Title of bill

An act to amend the emergency tenant protection act of nineteen seventy-four and the administrative code of the city of New York, in relation to prohibiting landlords from increasing rent for major capital improvements funded through state entities

Purpose

This bill prevents landlords from receiving a financial windfall from major capital improvements funded by the New York State Energy and Development Authority (NYSERDA).

SUMMARY OF SPECIFIC PROVISIONS Section 1 - Amends paragraph 3 of subdivision d of section 6 of section 4 of chapter 576 of the laws of 1974 to exclude NYSERDA funded projects.

Section 2 - Amends subparagraph g of paragraph 1 of subdivision g of section 26-405 of the administrative code of the city of New York to exclude NYSERDA funded projects.

Section 3 - Amends subparagraph k of paragraph 1 of subdivision g of section 26-405 of the administrative code of the city of New York to exclude NYSERDA funded projects.

Section 4 - Effective date.

Justification

The NYSERDA Multifamily Performance Program offers landlords incentives to invest in energy-efficient building upgrades, including implementing environmentally friendly measures to address specific energy and operational needs of buildings. In many cases landlords have filed applications with the Division of Housing and Community Renewal for Major Capital Improvement rent increases for capital work that is part of their jurisdiction for receiving NYSERDA funds. This practice of double-dipping, by taking advantage of two different incentives for the same work, violates the intent of the incentive provisions and, if permitted, results in a windfall to landlords. This bill would clarify that such double-dipping is not permitted.

Legislative history

This is a new bill in the Assembly.

Fiscal impact on the state

None.

Effective date

This act shall take effect immediately provided that (a) the amendments to paragraph 3 of subdivision d of section 6 of section 4 of the emergency tenant protection act of nineteen seventy-four made by section one of this act shall expire on the same date as such act expires and shall not affect the expiration of such act as provided in section 17 of chapter 576 of the laws of 1974; and (b) the amendments to section 26-204 if the city rent and rehabilitation law made by sections two and three of the act shall remain in full force and effect only as long as the public emergency requiring the regulation and control of residential rents and evictions continues, as provided in subdivision 3 of section 1 of the local emergency housing rent control act.