Allows retroactively to apply the rent reduction based upon failure to maintain services for accommodations regulated by the rent stabilization law

BILL NUMBER:S494

Title of bill

An act to amend the administrative code of the city of New York, in relation to rent reduction based upon a failure to maintain services for purposes of the rent stabilization law of nineteen hundred sixty-nine

Specific provisions

Section 26-514 of the administrative code of the city of New York as amended by chapter 116 of the laws of 1997 is amended.

Purpose or general idea of bill

To eliminate the discriminatory practice of granting an owner a major capital improvement increase retroactive to 30 days after the filing date while, at the same time, limiting tenants to a rent reduction only when the decrease in services order is issued.

Justification

Presently, when an owner applies for a major capital improvement increase, he or she is granted the increase retroactive to thirty days after filing for it. It is clearly inequitable that when a tenant files for a rent reduction, based on a decrease in services, that the tenant only gets the reduction from the date an order is issued by the District Rent Administrator, and not retroactive to thirty days after the tenant has filed his or her complaint.

Currently, the State Division of Housing and Community Renewal has a tremendous backlog processing complaints. This proposed change in the law would give owners an incentive to restore an actual decrease in services quickly, since a delay in an administrative determination by DHCR would no longer be financially beneficial.

Prior legislative history

This legislation was previously introduced.

Effective date

This act shall take effect on the thirtieth day after it shall have become law and shall apply to all applications for reductions in rent pending on the effective date of this act or filed on or after such date with the State Division of Housing and Community Renewal pursuant to the provisions of section 26-514 of the Administrative Code of the City of New York; provided that the amendments to section 26-514 of the rent stabilization law of nineteen hundred sixty nine made by section one of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law.