Permits the declaration of an emergency pursuant to the EMTPA for rental housing accommodations located in buildings covered by a project based assistance contract

Title of bill

An act to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to the declaration of emergencies for certain rental housing accommodations

Purpose or general idea of bill

The purpose of this legislation is to extend rent and eviction protections to tenants living in former federal Section 8 projects.

Summary of specific provisions

This legislation includes former Section 8 projects in the types of multiple dwellings that are covered by the New York City Rent Stabilization Law. Also, this bill enables localities to include former Section 8 projects as a type of housing accommodation that would be subject to the Emergency Tenant Protection Act of 1974.

Effects of present law which this bill would alter

Generally, housing accommodations in buildings completed on or after January 1, 1974 are not subject to rent regulation. This bill would subject former Section 8 projects completed after this date to rent regulation.

Justification

The Multi-Family Assisted Housing Reform Act of 1997 (MAHRA) was enacted by Congress in an attempt to reduce the long term costs of the Section 8 project-based rent assistance program. The United States Department of Housing and Urban Development (HUD) has begun implementing the changes required by MAHRA through an initiative known as Portfolio Reengineering (a.k.a. Mark to Market). Under this initiative HUD is seeking to preserve affordable housing while at the same time reducing rent assistance payments to buildings that heretofore have collected rents in excess of market rates. Despite the efforts of HUD, it is anticipated that some owners will opt out of the Section 8 program so that they may dramatically increase rents.

This legislation will ensure that all buildings that opt out of Section 8 in New York City and Nassau, Westchester and Rockland counties may become subject to rent regulation. Under current law, only those buildings that were occupied prior to January 1, 1974 will become subject to the rent and eviction protections offered by rent regulation.

Prior legislative history

A.1281 in the 2001/02 Legislative Session A.2789A in the 2003/04 Legislative Session A.5362 in the 2005/06 Legislative Session A.5677 in the 2007/08 Legislative Session

Fiscal implications for state and local governments

None.

Effective date

Immediately.