Relates to rent increases after vacancy of a housing accommodation; repealer

3 Co-sponsors

• Brad Hoylman-Sigal
• Liz Krueger
• Bill Perkins

BILL NUMBER:S1040

Title of bill

An act to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law and the local emergency rent control act, in relation to rent increases after vacancy of a housing accommodation; and to repeal certain provisions of the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four relating thereto

Purpose of the bill

To protect tenants by repealing the ability of a landlord to obtain a twenty percent increase in rent pursuant to the statutory vacancy bonus provision of the Emergency Tenant Protection Act.

Summary of specific provisions

This legislation amends the administrative code of the City of New York, the emergency tenant protection act of nineteen seventy- four, the emergency housing rent control law and the local emergency rent control act, in relation to rent increases after vacancy of a housing accommodation and to repeal certain provisions of the administration code of the city of New York and the emergency tenant protection act of nineteen seventy-four, that permits a landlord to increase the legally permissible rent by twenty percent (20%) upon vacancy of a rent-regulated apartment.

Justification

As housing costs increase exponentially across New York City, the displacement of working families and middle class residents from rent-regulated apartments has reached crisis proportions. Undoubtedly, the ability of landlords to increase rent by 20% in the event of a vacancy, getting closer to the decontrol threshold of two thousand dollars per month, has been playing a factor.

Under current law, there are no limitations imposed on a landlord's eligibility for a statutory vacancy bonus. Accordingly, a landlord can benefit from the vacancy bonus multiple times per year, rapidly transforming an affordable apartment into one that is market-rate and decontrolled.

Equally problematic, there is no "clean hands" requirement that the landlord conduct themselves responsibly in order to benefit from the bonus. Consequently, if a tenant leaves an apartment that is uninhabitable due to lack of heat, hot water, electricity, repairs or sanitary conditions, the landlord remains eligible for the twenty percent increase in rent upon vacancy. As a result, current law creates incentives for bad actors to deprive tenants of a habitable apartment in order to benefit from the statutory vacancy bonus.

In order to stem the displacement crisis in New York City, and preserve the affordable housing stock that remains available to

working families and moderate-income residents, the rent regulation laws are in need of comprehensive reform. The repeal of the statutory vacancy bonus provision is an important step in that direction.

Prior legislative history

2008: S.8155 Serrano - Referred to Housing, Construction, and Community Development 2009-10: Senate & Assembly Referred to Housing 2011-12: S.2699

Fiscal implications for state & local governments

None.

Effective date

This act shall take effect immediately, with provisions.