What's happening
This bill requires rent reductions when regulated apartments switch to separately billed electricity, with exemptions.
Why it matters
Rent and utility bills. Covers rent-stabilized and rent-controlled apartments in New York City and under state rent laws. Owners could apply to end electricity-inclusive rent, with scheduled rent reductions continuing after conversion to individual meters.
Protected tenants. Tenants receiving senior citizen or disability rent increase exemptions at conversion would keep electricity included in rent without a rent reduction. That protection would end when the benefit ends or the tenant leaves.
Required updates. Housing agencies would publish updated rent adjustment schedules within six months of each new city housing and vacancy survey. The city Rent Guidelines Board would tabulate survey data within 90 days.
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Who cares
Rent-regulated tenants
Most tenants in converting buildings would receive rent reductions but become responsible for their own electricity consumption.
Building owners
Owners with master-metered buildings and electricity-inclusive rents could apply to shift apartments to separately billed electricity.
Senior citizen and disability exemption recipients
Those receiving exemptions at conversion would retain electricity-inclusive rents while their benefits continue.
Housing agencies and the NYC Rent Guidelines Board
They would face deadlines for preparing survey data and publishing rent adjustment schedules.
Headline styles
Cut Rent When Electricity Separates
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
Companion bills
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.
Publish Rent and Vacancy Data
In Senate Committee · Housing, Construction And Community Development · Sponsor Andrew Hevesi
Publish Rent and Vacancy Data
In Senate Committee · Housing, Construction And Community Development · Sponsor Brian Kavanagh
Full text
5 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
481
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. SQUADRON -- 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 administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to the termination of rent inclusion of electricity for housing accommodations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision c of section 26-511 of the administrative code of the city of New York is amended by adding a new paragraph 15 to read as follows:
(15) provides that owners of buildings which are master metered for electricity and have rent inclusion of electricity may file applications to terminate the rent inclusion of electricity for the accommodations subject to this section.
(a) The division of housing and community renewal shall formulate and publish a schedule of rent adjustments or update the schedule of adjustments within six months of the publication of a new housing and vacancy survey by the United States Census Bureau. The schedule or updated schedule of rent adjustments shall be based on the new survey data as tabulated by the New York city rent guidelines board, governing the rate by which the rent of regulated housing accommodations shall be adjusted upon and after conversion to individual metering at the building by means of either direct metering or submetering. The division of housing and community renewal shall promulgate an operational bulletin and/or modify or amend its regulations as may be necessary to give effect to the provisions of this paragraph.
(b) The New York city rent guidelines board shall provide staff and assistance to the division of housing and community renewal, by tabulat-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01125-01-7
S. 481 2
ing the data of the triennial New York city housing and vacancy survey produced by the United States Census Bureau within ninety days of publication and providing the division of housing and community renewal the data necessary to promulgate a schedule of rent adjustments.
(c) The schedule of rent reductions shall apply to all rent stabilized accommodation units in a building that converts from master utility metering to individual utility metering by means of either direct metering or submetering, and shall take effect during the year in which the metering in the building is converted and continue each year thereafter.
(d) After the conversion, all tenants shall be responsible for their own electric consumption except those who, on the date of conversion, are receiving a senior citizen rent increase exemption or a disability rent increase exemption pursuant to section 26-509 of this chapter. For such tenants the rent shall not be reduced and the cost of electricity shall remain included in the rent; however, the owner may install any equipment in such tenant's housing accommodation as is required for effectuation of the electrical conversion. If such tenant no longer receives such benefit or vacates the housing accommodation, the owner shall reduce the legal regulated rent for the housing accommodation in accordance with the then-current schedule of rent reductions as promulgated by the division of housing and community renewal.
(e) Nothing in this paragraph shall be construed to permit shared metering.
§ 2. Section 26-405 of the administrative code of the city of New York is amended by adding a new subdivision n to read as follows:
n. Schedule of rent reductions; individual electric metering. Owners of buildings which are master metered for electricity and have rent inclusion of electricity may file applications to terminate the rent inclusion of electricity for the accommodations subject to this section.
(1) The city rent agency shall formulate and publish a schedule of rent adjustments or update the schedule of adjustments within six months of the publication of a new housing and vacancy survey by the United States Census Bureau. The schedule or updated schedule of rent adjustments shall be based on the new survey data as tabulated by the New York city rent guidelines board, governing the rate by which the rent of regulated housing accommodations shall be adjusted upon and after conversion to individual metering at the building by means of either direct metering or submetering. The city rent agency shall promulgate an operational bulletin and/or modify or amend its regulations as may be necessary to give effect to the provisions of this subdivision.
(2) The New York city rent guidelines board shall provide staff and assistance to the city rent agency, by tabulating the data of the triennial New York city housing and vacancy survey produced by the United States Census Bureau within ninety days of publication and providing the city rent agency the data necessary to promulgate a schedule of rent adjustments.
(3) The schedule of rent reductions shall apply to all rent controlled accommodation units in a building that converts from master utility metering to individual utility metering by means of either direct metering or submetering, and shall take effect during the year in which the metering in the building is converted and continue each year thereafter.
(4) After the conversion, all tenants shall be responsible for their own electric consumption except those who, on the date of conversion, are receiving a senior citizen rent increase exemption or a disability rent increase exemption pursuant to section 26-406 of this chapter. For such tenants the rent shall not be reduced and the cost of electricity
S. 481 3
shall remain included in the rent; however, the owner may install any equipment in such tenant's housing accommodation as is required for effectuation of the electrical conversion. If such tenant no longer receives such benefit or vacates the housing accommodation, the owner shall reduce the maximum rent for the housing accommodation in accordance with the then-current schedule of rent reductions as promulgated by the city rent agency.
(5) Nothing in this subdivision shall be construed to permit shared metering.
§ 3. Subdivision d of section 6 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, is amended by adding a new paragraph 6 to read as follows:
(6) owners of buildings which are master metered for electricity and have rent inclusion of electricity may file applications to terminate the rent inclusion of electricity for the accommodations subject to this section.
(i) The division of housing and community renewal shall formulate and publish a schedule of rent adjustments or update the schedule of adjustments within six months of the publication of a new housing and vacancy survey by the United States Census Bureau. The schedule or updated schedule of rent adjustments shall be based on the new survey data as tabulated by the New York city rent guidelines board, governing the rate by which the rent of regulated housing accommodations shall be adjusted upon and after conversion to individual metering at the building by means of either direct metering or submetering. The division of housing and community renewal shall promulgate an operational bulletin and/or modify or amend its regulations as may be necessary to give effect to the provisions of this paragraph.
(ii) The New York city rent guidelines board shall provide staff and assistance to the division of housing and community renewal, by tabulating the data of the triennial New York city housing and vacancy survey produced by the United States Census Bureau within ninety days of publication and providing the division of housing and community renewal the data necessary to promulgate a schedule of rent adjustments.
(iii) The schedule of rent reductions shall apply to all rent stabilized accommodation units in a building that converts from master utility metering to individual utility metering by means of either direct metering or submetering, and shall take effect during the year in which the metering in the building is converted and continue each year thereafter.
(iv) After the conversion, all tenants shall be responsible for their own electric consumption except those who, on the date of conversion, are receiving a senior citizen rent increase exemption or a disability rent increase exemption pursuant to a local law, ordinance or resolution as authorized by section 467-b of the real property tax law. For such tenants the rent shall not be reduced and the cost of electricity shall remain included in the rent; however, the owner may install any equipment in such tenant's housing accommodation as is required for effectuation of the electrical conversion. If such tenant no longer receives such benefit or vacates the housing accommodation, the owner shall reduce the legal regulated rent for the housing accommodation in accordance with the then-current schedule of rent reductions as promulgated by the division of housing and community renewal.
(v) Nothing in this paragraph shall be construed to permit shared metering.
S. 481 4
§ 4. Section 4 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, is amended by adding a new subdivision 9 to read as follows:
9. Owners of buildings which are master metered for electricity and have rent inclusion of electricity may file applications to terminate the rent inclusion of electricity for the accommodations subject to this section.
(1) The division of housing and community renewal shall formulate and publish a schedule of rent adjustments or update the schedule of adjustments within six months of the publication of a new housing and vacancy survey by the United States Census Bureau. The schedule or updated schedule of rent adjustments shall be based on the new survey data as tabulated by the New York city rent guidelines board, governing the rate by which the rent of regulated housing accommodations shall be adjusted upon and after conversion to individual metering at the building by means of either direct metering or submetering. The division of housing and community renewal shall promulgate an operational bulletin and/or modify or amend its regulations as may be necessary to give effect to the provisions of this subdivision.
(2) The New York city rent guidelines board shall provide staff and assistance to the division of housing and community renewal, by tabulating the data of the triennial New York city housing and vacancy survey produced by the United States Census Bureau within ninety days of publication and providing the division of housing and community renewal the data necessary to promulgate a schedule of rent adjustments.
(3) The schedule of rent reductions shall apply to all rent controlled accommodation units in a building that converts from master utility metering to individual utility metering by means of either direct metering or submetering, and shall take effect during the year in which the metering in the building is converted and continue each year thereafter.
(4) After the conversion, all tenants shall be responsible for their own electric consumption except those who, on the date of conversion, are receiving a senior citizen rent increase exemption or a disability rent increase exemption pursuant to a local law, ordinance or resolution as authorized by section 467-b of the real property tax law. For such tenants the rent shall not be reduced and the cost of electricity shall remain included in the rent; however, the owner may install any equipment in such tenant's housing accommodation as is required for effectuation of the electrical conversion. If such tenant no longer receives such benefit or vacates the housing accommodation, the owner shall reduce the maximum rent for the housing accommodation in accordance with the then-current schedule of rent reductions as promulgated by the division of housing and community renewal.
(5) Nothing in this subdivision shall be construed to permit shared metering.
§ 5. This act shall take effect immediately; provided that:
a. sections one, two, three and four of this act shall take effect on the first of January next succeeding the date upon which it shall have become a law, and shall apply to all fiscal years commencing on or after such date;
b. the amendments to section 26-511 of the rent stabilization law of nineteen hundred sixty-nine made by section one 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;
c. the amendments to section 26-405 of the city rent and rehabilitation law made by section two of this act shall remain in full force
S. 481 5
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;
d. the amendments to subdivision d of section 6 of the emergency tenant protection act of nineteen seventy-four made by section three 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
e. 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to the termination of rent inclusion of electricity for housing accommodations
Purpose
The purpose of this bill is to require a specific timeline that the Division of Housing and Community Renewal (DHCR) and the New York City Rent Guidelines Board must adhere to when setting the rent reduction schedules so that rent regulated apartments that have electricity factored in to their base rent have a fair reduction at the time of submetering.
Summary of provisions
This legislation amends subdivision c of section 26-511 of the administrative code of the city of New York by adding a new paragraph 15, amends section 26-405 of the administrative code of the city of New York by adding a new subdivision n, amends subdivision d of section 6 of section 4 of chapter 576 of the emergency tenant protection act by adding a new paragraph 6, and amends section 4 of chapter 274 of the emergency housing rent control law by adding a new subdivision 9
Read the full memo (757 words)
Justification
Rent regulated tenants in master-metered buildings receive unlimited electric current as a service included in the rent, and there is no incentive to the tenants to moderate their consumption of electricity. An incentive for moderation of such consumption is individual metering of electricity (direct metering or submetering), as it makes each user responsible for the cost of his or her own consumption. DHCR has thus, encouraged owners of master-metered buildings to undergo the substantial expense of converting their buildings to individual metering, thereby transferring responsibility for the cost of their consumption of electricity to the tenants. Recognizing that assuming the cost of their own electricity could also be a financial burden on the tenants, DHCR has sought to mitigate that burden by imposing building-wide rent reductions as a condition to conversion.
DHCR has applied schedules of rent reductions for rent controlled and rent stabilized housing accommodations that are converted to individual utility metering. The schedules are derived from the New York City Rent Guidelines Board's tabulation of data from the united States Census Bureau's Housing and Vacancy Survey (HVS), which is updated every three years. To ensure that the schedule of rent adjustments is updated in a timely manner, this bill would require the New York City Rent Guidelines Board to provide staff and assistance to DHCR to tabulate the data of the HVS within 90 days of publication and DHCR to publish a schedule of updated rent adjustments within 6 months of the publication.
Legislative history
2016: S189/A658 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/ passed assembly 2015: S189/A658 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/ passed assembly 2013-2014: S234/A171- REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/Passed Assembly 2011-2012: S2389/A7376- REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT/Advanced to Third Reading 2009-2010: S2349 (Schneidermann)/A193- ADVANCED TO THIRD READING/Passed Assembly
Fiscal implications
None to state.
Effective date
a. sections one, two, three and four of this act shall take effect on the first of January next succeeding the date upon which it shall have become a law, and shall apply to all fiscal years commencing on or after such date; b. the amendments to section 26-511 of the rent stabilization law of nineteen hundred sixty-nine made by section one 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; c. the amendments to section 26-405 of the city rent and rehabilitation law made by section two of this act shall remain in full force and effect only as long as and control of residential subdivision 3 of section act; d. the amendments to subdivision d of section 6 of the emergency tenant protection act of nineteen seventy-four made by section three 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 e. 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 1946.
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