What's happening
This bill prevents landlords from raising rent on vacant units if the vacancy was caused by failing to maintain habitability.
Why it matters
Discourages landlord neglect. By preventing rent increases after a vacancy caused by the landlord’s failure to maintain habitability, the bill creates a financial incentive for landlords to uphold housing standards, rather than benefitting from tenant displacement due to poor conditions.
Protects vulnerable tenants. The amendment helps safeguard tenants from being indirectly pushed out by landlords who might otherwise let conditions deteriorate to force turnover and raise rents.
Links rent policy to legal habitability. The bill directly ties the right to raise rents on vacant units to compliance with the “warranty of habitability,” reinforcing the importance of this legal standard and making it a key factor in rent regulation enforcement.
Targets a common loophole in rent regulation. By closing the gap that allowed rent hikes after “constructive evictions,” the legislation addresses a well-documented method landlords have used to reset rents above regulated levels, aiming for greater fairness in the rental market.
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Headline styles
Stop Preferential Rent Hikes
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Stop Preferential Rent Hikes
In Assembly Committee · Housing · Sponsor Rodneyse Bichotte Hermelyn
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3712
2017-2018 Regular Sessions
IN SENATE
January 26, 2017
Introduced by Sens. KRUEGER, ALCANTARA, AVELLA, BAILEY, DIAZ, DILAN, HAMILTON, HOYLMAN, LATIMER, MONTGOMERY, PARKER, PERALTA, PERKINS, RIVERA, SANDERS, SERRANO, SQUADRON, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the emergency tenant protection act of nineteen seventy-four and the administrative code of the city of New York, in relation to the regulation of rents
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (a-2) of section 10 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, as amended by section 11 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
(a-2) Provides that where the amount of rent charged to and paid by the tenant is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation which may be charged [upon renewal or] upon vacancy thereof, may, at the option of the owner, be based upon such previously established legal regulated rent, as adjusted by the most recent applicable guidelines increases and other increases authorized by law; provided, however, that such vacancy shall not be caused by the failure of the owner or an agent of the owner, to maintain the housing accommodation in compliance with the warranty of habitability set forth in subdivision one of section two hundred thirty-five-b of the real property law. Such housing accommodation shall be excluded from the provisions of this act pursuant to paragraph thirteen of subdivision a of section five of this act when subsequent to vacancy: (i) such legal regulated rent is two thousand five hundred dollars per month, or more, for any housing accommodation that is, or becomes, vacant after the effective date of the rent act of 2011 but prior to the effective date of the rent act of 2015 or (ii)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06860-01-7
S. 3712 2
such legal regulated rent is two thousand seven hundred dollars per month or more for any housing accommodation that is or becomes vacant on or after the rent act of 2015; starting on January 1, 2016, and annually thereafter, the maximum legal regulated rent for this deregulation threshold, shall also be increased by the same percent as the most recent one year renewal adjustment, adopted by the applicable rent guidelines board pursuant to the rent stabilization law.
§ 2. Paragraph 14 of subdivision c of section 26-511 of the administrative code of the city of New York, as amended by section 12 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
(14) provides that where the amount of rent charged to and paid by the tenant is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation which may be charged [upon renewal or] upon vacancy thereof, may, at the option of the owner, be based upon such previously established legal regulated rent, as adjusted by the most recent applicable guidelines increases and any other increases authorized by law; provided, however, that such vacancy shall not be caused by the failure of the owner or an agent of the owner, to maintain the housing accommodation in compliance with the warranty of habitability set forth in subdivision one of section two hundred thirty-five-b of the real property law. Such housing accommodation shall be excluded from the provisions of this code pursuant to section 26-504.2 of this chapter when, subsequent to vacancy: (i) such legal regulated rent prior to vacancy is two thousand five hundred dollars per month, or more, for any housing accommodation that is or becomes vacant after the effective date of the rent act of 2011 but prior to the effective date of the rent act of 2015 or (ii) such legal regulated rent is two thousand seven hundred dollars per month or more, provided, however that on January 1, 2016, and annually thereafter, the maximum legal regulated rent for this deregulation threshold shall be adjusted by the same percentage as the most recent one year renewal adjustment as adjusted by the relevant rent guidelines board, for any housing accommodation that is or becomes vacant on or after the rent act of 2015.
§ 3. This act shall take effect immediately; provided, however, that the amendments to section 10 of the emergency tenant protection act of nineteen seventy-four made by section one 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 provided, further, that the amendments to section 26-511 of the rent stabilization law of nineteen hundred sixty-nine made by section two 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the emergency tenant protection act of nineteen seventy-four and the administrative code of the city of New York, in relation to the regulation of rents
Purpose or general idea of bill
This bill would prohibit an owner from adjusting the amount of preferential rent upon the renewal of a lease.
Summary of specific provisions
The bill would prohibit owners from increasing a less than legal regulated rent to the legal regulated rent upon a lease renewal; only upon a tenant's vacancy could an owner increase the less than legal regulated rent. In addition, such a vacancy may not be caused by an owner or an agent of the owner's the failure to maintain the housing accommodation in a habitable condition.
Justification
As housing costs increase across the City of New York, the displacement of working families and middle class residents from rent regulated apartments has resulted in a housing crisis. The displacement of rent regulated tenants has been aggravated by a landlord's ability to abandon a preferential rent upon the renewal of a lease.
Prior to a change in law, a preferential rent was permanent for the duration of a tenancy and could only be increased upon vacancy. However, as a result of amendments to the law in 2003, landlords are now permitted to abandon a discounted, preferential rent and impose the statutory rent upon vacancy or renewal of a lease. Pursuant to this provision, tenants throughout New York City have faced sudden and unanticipated rent increases upon lease renewal. As a result, many tenants cannot pay new rental payments and have been forced out of their rent-regulated apartments.
Equally problematic is that there is no "clean hands" requirement that a landlord conduct him/herself responsibly when abandoning a preferential rent and imposing the maximum rent upon vacancy. If a tenant leaves an apartment that is uninhabitable due unsanitary conditions, lack of heat, hot water, electricity, repairs, etc., a landlord can precipitously increase rent upon the vacancy of an apartment. As such, the law encourages bad actors to deprive tenants of a habitable apartment in order to benefit from the ability to abandon a preferential rent.
In order to stem the displacement crisis in New York City and preserve the affordable housing stock available to working families and moderate-income residents, the rent regulation laws are in need of reform. This proposed amendment of the preferential rent provisions is an important step in that direction.
Fiscal implications
None to State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.