Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association

2 Co-sponsors

• Tony Avella
• Bill Perkins

BILL NUMBER:S2856

Title of bill

An act to amend the administrative code of the city of New York, in relation to renewal of a lease under the stabilization code

Purpose or general idea of bill

The purpose of this bill is to clarify the original intent of the Rent Stabilization Law and to prohibit landlords from circumventing the demolition provision included in the Rent Stabilization Law. Landlords are attempting to circumvent rent stabilization by applying for a demolition permit in order to move tenants out; when their real purpose is to do a gut rehab so they can lease the apartments for higher rents.

Summary of specific provisions

Section 1 of this bill constitutes a provision where the owner has established to the satisfaction of the division of housing and community renewal after a hearing that he or she intends in good faith to demolish the building and has obtained a permit thereof from the department of buildings.

Section 2 provides for an immediate effective date with qualifications.

Effects of present law which this bill would alter

This bill would amend Subparagraph (a) of paragraph 9 of subdivision c of section 26-511 of the administrative code of the city of New York, constituting a provision of the rent stabilization law of nineteen hundred sixty-nine.

Justification

It is in the State's economic and social interest that an adequate supply of affordable housing be available. But as development pressures continue to drive the competitive real estate market in New York City and surrounding counties, there has been an increasing loss of affordable housing units. Eager to increase profits on rent stabilized housing units in particular, building owners have utilized a variety of means to turn these units into more profitable luxury housing or commercial units. The result has been that each year, thousands of rent-stabilized units are permanently removed from the housing stock. This trend continues as owners seek new ways to manipulate the letter and spirit of the law in order to more expeditiously eliminate the rent stabilized units in a building. This bill addresses one method by which owners axe increasingly attempting to get rid of rent-stabilized housing. While the Legislature intended that the demolition provision of the Rent Stabilization law allow room for owners to demolish old, dilapidated and dangerous housing in order to replace it with new, safe housing, some owners are attempting to redefine demolition as simple renovations where entire floors are left intact, outer walls are untouched, or major structural elements remain in place. Such uses of the term "demolition" are inconsistent with

both its common meaning and the meaning that was intended by the Legislature. This bill will clarify the definition of "demolition", making it consistent with its common and intended definitions. Accordingly, it will be clear that owners shall not be permitted to eliminate rent-stabilized housing units by manipulating the demolition provision in this manner.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall apply to any action or proceeding pending in any court and to any application, complaint, or proceeding pending before an administrative agency on such effective date, as well as to any action or proceeding commenced thereafter; provided, however that the amendments to subparagraph (a) of paragraph 9 of subdivision c of section 26-511 of the rent stabilization law of nineteen hundred sixty-nine made by section one of this act shall expire of such law as provided under section 26-520 of the administrative code of the city of New York.