Requires limited profit housing company to show maintenance of essential services before approval of rent increases

1 Co-sponsor

• Brad Hoylman-Sigal

BILL NUMBER:S207

Title of bill

An act to amend the private housing finance law, in relation to defining "essential services" and conditioning approval of increase of maximum rentals upon maintenance of all essential services

Purpose

The purpose of this bill is to insure that rent increases in Mitchell-Lama buildings are only granted when the housing company or landlord is maintaining essential services or when the increases are conditioned upon their being restored. The bill provides that before any rent increase is approved in respect to a Mitchell-Lama building, the housing company applying for the increase must be found to be maintaining all essential services, and that no increase shall be approved where there is a certification that the dwelling accommodation is a fire hazard or is in a dangerous condition, or is detrimental to life or health or is occupied in violation of law. If essential services are not being maintained or if fire hazards or dangerous conditions exist, a rent increase may be approved contingent upon the restoration of essential services of removal of unsafe conditions in a reasonably short and fixed time period. This bill also contains a definition of essential services which indicates that such services include, but are not limited to, repairs, maintenance, and furnishing of light, heat, hot and cold water, telephone and elevator services, kitchen, bath and laundry facilities and privileges, as well as resident manager, superintendent and janitorial services, removal of refuse, park and recreation facilities, security safeguards, and community meeting facilities and nursery school rooms. The provisions of the bill would not apply with respect to services reduced or discontinued pursuant to the express consent of the division of housing and community renewal.

Justification

Mitchell-Lama buildings are operated on what is, in essence, a cost plus formula. Therefore, rentals are paid to a level necessary to maintain essential services. If rentals are inadequate, the housing company may apply for an increase in such rentals. There is, therefore, no excuse for a housing company or landlord not to provide essential services to tenants. It is particularly unfair for tenants to face a rent increase in a Mitchell-Lama building when essential services are not being maintained. The bill will help ensure that landlords provide essential services if an increase is to be granted.

Legislative history

2012: Referred to Housing, Construction and Community Development 2011: Referred to Housing, Construction and Community Development 2010: S.1658/A.540

Fiscal implications

None.

Effective date

This act shall take effect immediately.