Relates to the establishment of rent adjustments; repealer

2 Co-sponsors

• Brad Hoylman-Sigal
• Bill Perkins

BILL NUMBER:S5040

Title of bill

An act to amend the administrative code of the city of New York and the emergency housing rent control law, in relation to the establishment of rent adjustments; and repealing certain provisions of the administrative code of the city of New York relating thereto

Purpose

This bill would create parity between the maximum rent increases eligible for rent controlled and rent stabilized apartments. It would require the Department of Housing and Community Renewal to Cap the percentage rent increase available to owners of rent controlled apartments at a rate on par with recent Rent Guidelines Board adjustments for 1-year renewal leases.

Summary of provisions

Section 1 amends subdivision a of paragraph 5 of section 26-405 of the administrative code of the city of New York.

Section 2 repeals subparagraphs (1) and (n) of paragraph 1 of subdivision g of section 26-405 of the administrative cede of the city of New York.

Section 3 amends section 4 of chapter 274 of the laws of 1946 by adding a new subdivision 9.

Section 4 sets forth the effective date.

Justification

Many rent controlled tenants are currently subject to steep rent increases calculated using an abstruse formula. Rent increases in rent stabilized apartments are set by the Rent Guidelines Boards (one in New York City and one each in Nassau, Westchester, and Rockland counties) using a formula that taken into account a wide range of economic factors. Certain owners of rent-controlled apartments are entitled to automatically raise rents up to 7.5 percent each year, rates higher than average increases for rent stabilized apartments. This bill would create parity between the two systems by capping rent. controlled rent increases at a level equal to the average of the previous 5 ROB rent increases for 1-year rent stabilized renewal leases. This will prevent rent controlled apartment rents from inflating farther beyond their rent stabilized counterparts, while maintaining the system of rent control increases currently in place and the protections it affords.

Prior legislative history

A.7881A of 2013-2014

Effective date

This act shall take effect on the one hundred and eightieth day after it shall have become a law; provided that the amendments to section 26-405 of the city rent and rehabilitation law made by sections. one and two of this act shall remain in full force and effect only as long as the.public emergency requiring the regulation and control of residential rents and evictions continues, as provided in subdivision 3 of section 1 of the local emergency housing rent control act; and provided that the amendments to section 4 of the emergency housing rent control law made by section four of this act shall expire on the same date as such law expires and shall

not affect the expiration of such law as provided in subdivision 2 of section 1 of chapter 274 of the laws of 1946.