Provides for the decontrol of housing accommodations upon vaccancy when the legal regulated rent is $1,500 or more

BILL NUMBER:S5147

Title of bill

An act to amend the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law and the administrative code of the city of New York, in relation to the rent threshold for the deregulation of rents upon vacancy

Purpose

This bill amends the rent control and rent stabilization laws to reduce the rent threshold for deregulating rent regulated apartments upon vacancy from $2000 to $1500 per month.

Summary of provisions

This bill amends chapter 576 of the laws of 1974, chapter 274 of the laws of 1946, and sections 25-504.2 and 26-403 of the administrative code of the city of New York reduce the existing monthly rent for deregulating rent regulated apartments to $1500.

Justification

This bill makes the owner occupancy provisions of the rent control law The rent control and rent stabilization laws provided that, for apartments after vacancy, an apartment can be deregulated where the legal regulated rent for the apartment exceeds $2,000 per month.

The fundamental premise of rent regulation is the existence of a housing emergency. In accordance with the requirements of the rent regulation laws, a determination is required to be made every three years whether the vacancy rate for the housing stock located in the City of New York is more or less than 5%. The task of making that initial determination of the vacancy rate is contracted to the United States Census Bureau, an independent third party which undertakes a survey of the housing stock to determine whether the vacancy. As part of that contract, the Census Bureau collects and compiles a wide array of statistical information regarding the housing stock which, in turn, is used by various government agencies, including the City Council and the Rent Guidelines Board.

In 2008, the Census Bureau determined, as it had in previous three-year cycles, that the City's overall vacancy rate is less than 5%. Based upon that determination, the City Council continued the housing emergency. However, the 2008 Housing and Vacancy Survey data also demonstrates that the vacancy rate for all apartments with monthly rents of $1500 and above exceed 5% at a statistically significant level. At rent levels increase, vacancy rates increase accordingly. Thus, with no housing emergency for apartments renting at $1500 and above, the high rent vacancy deregulation laws should be amended to reduce the deregulation threshold from $2000 to $1500.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately, with provisions.