Relates to statutes of limitations based on notices of deregulation

BILL NUMBER:S797

Title of bill

An act to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to the statute of limitations on notices of deregulation

Purpose or general idea of the bill

The bill will amend the Emergency Tenant Protection Act of 1974 and the Administrative Code of New York City. This bill will provide that the statute of limitations for challenges by a tenant to a high rent decontrol of a rent-regulated apartment is tolled during the time that the notice required by statute is not given in order to decrease the number of rent-regulated units improperly deregulated.

Summary of specific provisions

This bill will:

* Provide that the limitations period for Challenging deregulation of a rent-regulated apartment and claim of overcharge is tolled if the landlord fails to file and serve the appropriate notice; and * Apply the sections of the bill to housing accommodations that become vacant on or after the date this bill would become law.

Effects of present law which this bill would alter

The Emergency Tenant Protection Act (EPTA) currently has a four-year statute of limitations for challenging a legal rent. Also, the New York City Administrative Code, §26-516, and EPTA, §12, require owners to keep rent records for four years" This bill adds a new subdivision (c) of Section 26-504.2 of the New York City Administrative Code to provide that the periods for the examination of rental history and claims of overcharge and improper deregulation are extended by the period during which the owner does not comply with notice and filing requirements. In addition, it amends the ETPA to set forth requirements for a landlord who seeks to deregulate a unit on grounds that the rent has exceeded the high rent threshold to file a statement with the Division of Housing and Community Renewal (DHCR) and to notify the tenants, and tolls the statute of limitations during the time the landlord failed to comply with these requirements

Justification

The rent laws provide for the deregulation of apartments that become vacant with a lawful rent of at least $2,000 per month. Since the right of a tenant to challenge a rent extends only for four years, a claim of "high rent vacancy deregulation," which is predicated on the lawful rent for an apartment reaching the $2,000 per month level becomes unchallengeable after four years. Therefore, an affected tenant must be given notice not only of his or her right to challenge the claim of deregulation, but also of the information necessary to understand the owner's claim and to file a meaningful challenge.. Where the owner fails to provide the required notices for high-rent exemption, the most effective method of ensuring that tenants are given a

meaningful opportunity to challenge claims of deregulation and related rent overcharges is to provide that the period to examine the rental history of an accommodation not commence until such notices are provided.

Prior legislative history

2012: Referred to Housing, Construction and Community Development 2010: S.5851 (Squadron) - Housing, Construction and Community Development, A.7598 (Jefferies) - Passed Assembly 2009: (Squadron) - Rules, A.7598 (Jefferies) - Passed Assembly

Fiscal implications

There will be some modest administrative costs associated with extending the statute of limitations, and with the DHCR maintaining additional records.

Effective date

Bill would take effect immediately; sections 1 and 2 would apply to housing accommodations that become vacant on or after the date this bill would become law.