Requires landlords to make certain records available upon request of the rent guidelines board

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 powers of the rent guidelines board

Purpose

This bill requires landlords to make certain records available upon the request of the rent guidelines board.

Summary of provisions

Section 1 of this bill amends subdivision b of section 26-510 of the administrative code of the city of New York. Upon request by the rent guidelines board, landlords regulated by the emergency tenant protection act of 1974 shall make available any books and records regarding income, expenditures, tax benefits, financing arrangements, utility bills, and any other pertinent information to determine rent adjustments. This shall only apply to cities with a population of one million or more.

Section 2 adds a new subdivision j to section 26-510 of the administrative code of the city of New York. The rent guidelines board shall be authorized to administer oaths, issue subpoenas, conduct investigations, and designate officers to hear reports on behalf of the board.

Section 3 amends subdivision c of section 4 of chapter 576 of the laws of 1974. Upon request by the rent guidelines board, landlords regulated by the administrative code of the city of New York shall make available any books and records regarding income, expenditures, tax benefits, financing arrangements, utility bills, and any other pertinent information to determine rent adjustments. This shall only apply to cities with a population of one million or more. All information provided shall be subject to the freedom of information law.

The rent guidelines board shall be authorized to administer oaths, issue subpoenas, conduct investigations, and designate officers to hear reports on behalf of t,he board.

Section 4 enacts this bill immediately.

Justification

The RSL and ETPA require that rent guidelines for stabilized apartments be promulgated annually based on the economic condition of the residential real estate industry. In practice, however, this mandate has been carried out by rent guidelines boards in ways which do not accurately assess the necessity for rent adjustments. The New York City rent guidelines board has based rent adjustments on an annual survey of vendor costs (fuel, labor, parts, insurance, etc.) with no analysis either of what landlords actually spend for these items or how much rental income they earn. The suburban boards have based rent adjustments on an unverified annual survey of costs and income.

For the first time, this legislation requires that rent adjustments are based on actual increases in landlords' costs of maintaining their properties. Landlords should base need for rental increases on increased costs of maintenance and costs of improvements. Rental increases can thereby be justified after a review of the records indicating these increased costs of business.

Legislative history

New bill. EFFECTIVE DATE : This act shall take effect immediately following the expiration of certain provisions of the rent stabilization and emergency tenant protection act.