What's happening
This bill requires that rental units in large cities, after leaving limited-profit housing programs, become subject to rent stabilization with rents frozen at the last approved amount.
Why it matters
Prevents sudden rent hikes for tenants. By freezing rents at the last approved amount before a building leaves a limited-profit housing program, the bill shields residents from dramatic increases that often follow such transitions in high-cost cities.
Extends tenant protections to vulnerable populations. Many limited-profit developments house low- and moderate-income renters; ensuring these units enter rent stabilization helps maintain affordable housing stock in cities where it's most needed.
Closes a loophole exploited by landlords. Previously, landlords could dissolve limited-profit companies and immediately raise rents to market rates; this bill blocks that practice, aiming to preserve affordability even after public or subsidized programs end.
Limits landlord incentives to exit affordability programs. By mandating rent stabilization post-dissolution, the bill reduces the financial motivation for landlords to leave limited-profit schemes solely to capitalize on higher market rents.
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Who cares
Headline styles
Extend Rent Stabilization Protections
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
History
- Referred to housing
- Referred to housing
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4685
2017-2018 Regular Sessions
IN ASSEMBLY
February 3, 2017
Introduced by M. of A. O'DONNELL -- Multi-Sponsored by -- M. of A. GLICK -- read once and referred to the Committee on Housing
AN ACT to amend the private housing finance law, in relation to rent regulation after dissolution of a limited-profit housing company
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) are located in a city with a population of one million or more; and (ii) prior to the dissolution date were operated as a rental development pursuant to this article.
(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) upon dissolution, the affected development shall be subject to the rent stabilization laws under the emergency tenant protection act of nineteen seventy-four; (b) 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 (c) such legal regulated rent shall not at any time be subject to adjustment pursuant
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09385-01-7
A. 4685 2
to subdivision a of section 26-513 of the administrative code of the city of New York.
§ 2. This act shall take effect immediately and shall apply to any affected development with a dissolution date on or after such effective date.
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.