Requires the state division of housing and community renewal to verify there are no violations on the property prior to authorizing a rent increase for major capital

Summary of specific provisions

Section 1: amends subdivision (g) 26-405 of the administrative code of the city of New York is amended by adding a new subparagraph requiring the state division of housing and community renewal to verify, in collaboration with local authorities responsible for inspecting buildings, that the landlord filing an application for major capital improvement does not have an more than thirty class A, or a class 3, or C housing code violation on the property.

Section 2: amends paragraph 6 of subdivision (c) of section 26-511 of the administrative code of the city of New York to require the state division of housing and community renewal to verify, in collaboration with local authorities responsible for inspecting buildings, that the landlord filing an application for major capital improvement does not have an more than thirty class A, or a class B, or C housing code violation on the property.

Section 3: amends subdivision d of section 6 of section 4 of chapter 576 of the laws of 1974 by adding paragraph 6 to require the state division of housing and community renewal to verify, in collaboration with local authorities responsible for inspecting buildings, that the landlord filing an application for major capital improvement does not have an more than thirty class A, or a class B, or C housing code violation on the property.

Section 4: amends the second undesignated paragraph of paragraph (a) of subdivision 4 of section 4 of the emergency rent control law to amends section (g) 26-405 of the administrative code of the city of New York is amended by adding a new subparagraph requiring the state division of housing and community renewal to verify, in collaboration with local authorities responsible for inspecting buildings, that the landlord filing an application for major capital improvement does not have an

more than thirty class A, or a class B or C housing code violation on the property.

Section 5: establishes effective date and related specific provisions.

Justification

Since July 1, 1970, a major capital improvement is required for the operation, preservation or maintenance of the structure. Under these circumstances, a rent increase is authorized for rent controlled apartments. Rent increases for rent stabilized apartments require the improvement to be building-wide, needed for the operation, preservation or maintenance of the structure; depreciable under the Internal Revenue Code, other than for ordinary repairs; and to replace an item whose useful life has expired.

Class A housing code violations are classified as non-hazardous and include minor leaks, chipping or peeling paint when no children under the age of six live in the home, or lack of signs designating floor numbers. Class B violations are classified as hazardous such as inadequate lighting in public areas, lack of posted certificate of occupancy, or removal of vermin. Class C are immediately hazardous violations and include inadequate fire exits, rodents, lead-based paint, lack of heat, hot water, electricity, or gas.

Currently, only class C violations prevent the state division of housing and community renewal (DHCR) from approving a rent increase based on major capital improvement. Tenants, however, are forced to pay a higher rent even when class A and S violations are not corrected by the landlord. It is the responsibility of landlords to provide essential services to their tenants, repair housing code violations, and maintain their properties in habitable conditions.

Prior legislative history

2011-12: S.7760/A.10170 - Referred to Rules/Referred to Codes.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the sixtieth day after it shall have become a law; with provisions