Prohibits a county rent guidelines board from establishing rent adjustments for class A dwelling units based on certain considerations

1 Co-sponsor

• Daniel L. Squadron

BILL NUMBER:S5603A

Title of bill

An act to amend the emergency tenant protection act of nineteen seven- ty-four and the administrative code of the city of New York, in relation to prohibiting a county rent guidelines board from establishing rent adjustments for class A dwelling units based on certain considerations

Purpose or general idea of bill

To prohibit a county rent guidelines board from establishing rent adjustments for class A dwelling units based on the current rental cost of a unit or on the amount of time that has elapsed since another rent increase authorized was authorized.

Summary of specific provisions

Section 1 amends the opening paragraph of subdivision b of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, as amended by chapter 403 of the laws of 1983.

Section 2 amends subdivision b of section 26-510 of the administrative code of the city of New York.

Section 3 establishes the effective date.

Justification

In 2008, New York city's Rent Guidelines Board unilaterally decided that landlords of rent-subsidized apartments where the tenant was paying less than $1000 monthly rent and had lived in the apartment for more than six years were allowed to levy a surcharge on those tenants' rents. Suit was brought by the Legal Aid society and in January 2010, the Supreme Court of New York County declared that the Rent Guidelines Board did not have authority to impose supplemental rent increases on long-term tenants of apartments renting for less than $1000 per month if not authorized by the legislature. In June 2010, the Appellate division followed suit, and upheld this ruling, Shortly thereafter, on appeal by the Rent Guidelines Board, the New York State Court of Appeals reversed both lower courts, and in Casado v. Markus, decided that the Rent Guidelines Board had the authority to grant supplemental increases in the absence of legislative authorization. This bill will correct the Court of Appeal's decision in Casado, which infringes upon the role of the legislature as the sole authority to create new classes of housing accommodations and/or create rent adjustments. It will also prohibit these supplemental increases, which affect lower-income tenants in what essentially amounts to a "poor tax."

Prior legislative history

None.

Fiscal implications

None.

Effective date

This act shall take effect immediately; provided that the amendments to section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy four, made by section one of this act, shall not affect the expiration of such section and shall be deemed to expire therewith; and provided further that the amendments to subdivision b of section 26-510 of the administrative code of the city of New York made by section two of this act, shall not affect the expi- ration of such subdivision and shall be deemed to expire therewith.