Relates to rent increases after vacancy of a housing accommodation; repealer

Summary of specific provisions

This legislation amends the administrative code of the City of New York, the emergency tenant protection act of nineteen seventy-four, the emergency housing rent control law and the local emergency rent control act, in relation to rent increases after vacancy of a housing accommodation and to repeal certain provisions of the administration code of the city of New York and the emergency tenant protection act of nineteen seventy-four, that permits a landlord to increase the legally permissible rent by twenty percent (20%) upon vacancy of a rent-regulated apartment.

Justification

As housing costs increase rapidly across New York City, the displacement of working families and middle class residents from rent-regulated apartments has reached crisis proportions. Undoubtedly, the ability of landlords to increase rent by 20% in the event of a vacancy, thus bringing a unit closer to the decontrol threshold of $2500 per month, has been a significant factor.

Under current law, a landlord is eligible for a statutory vacancy bonus once per year when an apartment becomes vacant. Accordingly, a landlord can rapidly transform an affordable apartment into one that is market-rate and decontrolled.

Equally problematic, there is no "clean hands" requirement that landlords conduct themselves responsibly in order to benefit from the bonus. Consequently, if a tenant leaves an apartment that is uninhabitable due to lack of heat, hot water, electricity, repairs or sanitary conditions, the landlord remains eligible for the twenty percent increase in rent upon vacancy. As a result, current law creates incentives for bad actors to deprive tenants of a habitable apartment in order to benefit from the statutory vacancy bonus. In order to stem the displacement crisis in New York City, and preserve the affordable housing stock that remains available to working families and moderate-income residents, the rent regulation laws are in need of comprehensive reform. The repeal of the statutory vacancy bonus provision is an important step in that direction.

Prior legislative history

2008: S.8155 - Referred to Housing, Construction, and Community Development 2009-10: Senate & Assembly Referred to Housing 2011-12: S.2699- Referred to Housing, Construction, and Community Development 2013-14: S.1040- Referred to Housing, Construction, and Community Development

Fiscal implications for state & local governments

None.

Effective date

This act shall take effect immediately; provided that:

(a) the amendments to section 6 of the emergency tenant protection act of nineteen seventy-four made by section four of this act shall expire on the same date as such act expires and shall not affect the expiration of such act as provided in section 17 of chapter. 576 of the laws of 1974; and

(b) the amendments to section 5 of the emergency housing rent control law made by section five 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; and

(c) the amendments to section 26-512 of chapter 4 of title 26 of the administrative code of the city of New York made by section three 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; and

(d) the amendments to section 26-403.2 of the city rent and rehabilitation law made by section six 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

(e) the amendments to subdivision 5 of section 1 of the local emergency housing rent control act, made by section seven of this act, shall not affect the effectiveness of such subdivision and shall cease to be in full force and effect pursuant to subdivision 3 of section 1 of such act.