What's happening
This bill sets rent levels for certain housing units after dissolution of limited-profit housing companies in New York City, restricting future rent increases.
Why it matters
Locks in tenants’ current rent levels. After a limited-profit housing company dissolves, the rent for tenants in affected units can’t be raised above what they were paying immediately before dissolution—including any surcharges—helping protect affordability for residents who might otherwise face sudden rent hikes.
Overrides standard rent increase mechanisms. The bill specifically bars future rent adjustments for these units via the usual Rent Guidelines Board or Emergency Tenant Protection Act processes, meaning rents are frozen at the pre-dissolution level, regardless of what citywide rent stabilization increases might be approved.
Limits landlord revenue and future housing market dynamics. By preventing rent increases in these former limited-profit developments, the law could make such properties less lucrative for owners and investors, potentially influencing decisions on maintenance, upgrades, or conversions in the long term.
Targets large-scale impact areas. Since this applies only in cities with over one million residents (i.e., New York City), it addresses a significant segment of tenants transitioning out of limited-profit (Mitchell-Lama-type) housing programs—many of whom are low- or moderate-income and at risk of displacement.
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Who cares
Headline styles
Freeze Post-Dissolution Rents
Plain English, a few words. Used as the page title.
Sponsors
10 Co-sponsors
History
- Ordered to third reading cal.315
- Advanced to third reading cal.207
- Reported
- Referred to housing
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4159
2017-2018 Regular Sessions
IN ASSEMBLY
February 1, 2017
Introduced by M. of A. ROSENTHAL, BENEDETTO, COOK, TITONE, DINOWITZ, KAVANAGH, TITUS, CYMBROWITZ, COLTON, MOSLEY -- Multi-Sponsored by -- M. of A. FARRELL, GLICK, GOTTFRIED, HEVESI, PERRY, RIVERA -- read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to limited profit housing companies in a city with a population of one million or more
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The private housing finance law is amended by adding a new section 35-a to read as follows:
§ 35-a. Rent following dissolution. 1. As used in this section, the following terms shall have the following meanings:
(a) "Affected development" shall mean housing accommodations that (i) prior to the dissolution date were operated as a rental development pursuant to this article; and (ii) following the dissolution date are subject to the rent stabilization law of nineteen hundred sixty-nine or the emergency tenant protection act of nineteen seventy-four.
(b) "Affected dwelling unit" shall mean a housing unit in an affected development.
(c) "Affected housing company" shall mean a limited-profit housing company with an affected development.
(d) "Dissolution date" shall mean, with respect to any affected development, the date of dissolution or reconstitution of the affected housing company with such affected development pursuant to section thirtyfive of this article.
2. Notwithstanding the provisions of any general, special or local law: (a) the initial legal regulated rent for any affected dwelling unit on and after the dissolution date shall be the last rent authorized for the affected dwelling unit before the dissolution date, including rental surcharges, if any, and (b) such legal regulated rent shall not
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05472-01-7
A. 4159 2
at any time be subject to adjustment pursuant to subdivision a of section 26-513 of the administrative code of the city of New York, or subdivision a of section 9 of section 4 of the emergency tenant protection act of nineteen seventy-four.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.