What's happening
This bill requires property owners receiving tax abatements for major capital improvements to fully waive related rent increases for tenants during the abatement period.
Why it matters
Closes a loophole by requiring landlords who get tax abatements for major capital improvements to fully waive all related rent increases for tenants during the abatement period, rather than just a portion. This means tenants will not face rent hikes tied to those improvements as long as the landlord is receiving the tax break.
Shifts more financial responsibility for building improvements from tenants to property owners during the abatement period. Landlords can no longer offset the cost of improvements by raising tenants’ rents while simultaneously benefiting from tax relief.
Could reduce financial strain and displacement risk for tenants in rent-stabilized housing, especially in areas with frequent capital improvements. This change may help keep rents more predictable and affordable for vulnerable tenants.
May make landlords reconsider the timing or scope of major capital improvements if they cannot pass costs to tenants while receiving tax benefits. This could influence property management strategies and investment decisions in rent-regulated buildings.
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Limit Rent Hikes After Repairs
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History
- Referred to housing
- Referred to housing
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5172
2019-2020 Regular Sessions
IN ASSEMBLY
February 7, 2019
Introduced by M. of A. CYMBROWITZ -- read once and referred to the Committee on Housing
AN ACT to amend the administrative code of the city of New York, in relation to waivers of rent adjustments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision dd of section 11-243 of the administrative code of the city of New York, as added by local law number 41 of the city of New York for the year 1988, is amended to read as follows:
dd. [Partial waiver] Waiver of rent adjustments attributable to major capital improvements. (1) The provisions of this subdivision apply to and are additional requirements for claiming or receiving any tax abatement under this section, except as provided in paragraphs three and four of this subdivision.
(2) The owner of the property shall file with the department of housing preservation and development, on the date any application for benefits is made, a declaration stating that in consideration of any tax abatement benefits which may be received pursuant to such application for alterations or improvements constituting a major capital improvement, such owner agrees to waive the collection of a [portion of the total annual amount of any] rent adjustment attributable to such major capital improvement which may be granted by the New York state division of housing and community renewal pursuant to the rent stabilization code equal to [one-half of] the total annual amount of the tax abatement benefits which the property receives pursuant to such application with respect to such alterations or improvements. Such waiver shall commence on the date of the first collection of such rent adjustment, provided that, in the event that such tax abatement benefits were received prior to such first collection, the amount waived shall be increased to account for such tax abatement benefits so received. Following the expiration of a tax abatement for alterations or improvements constitut-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09275-01-9
A. 5172 2
ing a major capital improvement for which a rent adjustment has been granted by such division, the owner may collect the full amount of annual rent permitted pursuant to such rent adjustment. A copy of such declaration shall be filed simultaneously with the New York state division of housing and community renewal. Such declaration shall be binding upon such owner, and his or her successors and assigns.
(3) The provisions of this subdivision shall not apply to substantial rehabilitation of buildings vacant when alterations or improvements are commenced or to buildings rehabilitated with the substantial assistance of city, state or federal subsidies.
(4) The provisions of this subdivision shall apply only to alterations and improvements commenced after its effective date.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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