What's happening
This bill removes the price index of operating costs as a factor in determining rent increases by the rent guidelines board.
Why it matters
Reduces the influence of landlords' rising operating costs on rent increases. By removing the price index of operating costs as a required consideration, rent increases approved by the rent guidelines board will no longer be directly linked to changes in expenses like fuel, labor, insurance, and maintenance for building owners.
Shifts focus to tenants’ cost of living and housing supply. The rent guidelines board will continue to consider factors like the overall supply of housing, vacancy rates, and cost of living indices, which could make rent adjustments more reflective of tenants’ economic conditions rather than landlords’ expenses.
Potentially limits rent increases during periods of high inflation. In times when operating costs (such as utilities or repairs) rise quickly, this change may prevent corresponding rent hikes, offering more predictability and protection for tenants, but potentially squeezing landlords’ profit margins.
May impact building maintenance and investment incentives. Critics might argue that without the ability to increase rents based on actual cost increases, landlords could be less inclined to invest in property upkeep or improvements, potentially affecting housing quality over time.
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Who cares
Rent-stabilized tenants
The bill would remove property taxes, water and sewer rates, and operating and maintenance costs from the factors boards must consider when setting annual rent adjustments.
Owners of rent-regulated housing
Their tax, insurance, fuel and labor costs would no longer be explicitly required considerations in annual rent-setting decisions.
New York City and county rent guidelines boards
The bill would narrow their required considerations while retaining financing costs, housing supply, vacancy rates, cost-of-living data and other available data.
Headline styles
Remove Rent Cost Index
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing
- Referred to housing
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8368
2019-2020 Regular Sessions
IN ASSEMBLY
June 15, 2019
Introduced by M. of A. EPSTEIN -- read once and referred to the Committee on Housing
AN ACT to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to eliminating the price index of operating costs as a factor in determining rent increases by the rent guidelines board
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision b of section 26-510 of the administrative code of the city of New York is amended to read as follows:
b. The rent guidelines board shall establish annually guidelines for rent adjustments, and in determining whether rents for housing accommodations subject to the emergency tenant protection act of nineteen seventy-four or this law shall be adjusted shall consider, among other things (1) the economic condition of the residential real estate industry in the affected area including such factors as the prevailing and projected (i) [real estate taxes and sewer and water rates, (ii) gross operating maintenance costs (including insurance rates, governmental fees, cost of fuel and labor costs), (iii)] costs and availability of financing (including effective rates of interest), [(iv)] (ii) over-all supply of housing accommodations and over-all vacancy rates, (2) relevant data from the current and projected cost of living indices for the affected area, (3) such other data as may be made available to it. Not later than July first of each year, the rent guidelines board shall file with the city clerk its findings for the preceding calendar year, and shall accompany such findings with a statement of the maximum rate or rates of rent adjustment, if any, for one or more classes of accommodations subject to this law, authorized for leases or other rental agreements commencing on the next succeeding October first or within the twelve months thereafter. Such findings and statement shall be published in the City Record.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10414-01-9
A. 8368 2
§ 2. Subdivision b of section 4 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, as amended by chapter 486 of the laws of 1976, the opening paragraph as amended by chapter 403 of the laws of 1983 and the second and third undesignated paragraphs as amended by chapter 330 of the laws of 1980, is amended to read as follows:
b. A county rent guidelines board shall establish annually guidelines for rent adjustments which, at its sole discretion may be varied and different for and within the several zones and jurisdictions of the board, and in determining whether rents for housing accommodations as to which an emergency has been declared pursuant to this act shall be adjusted, shall consider among other things (1) the economic condition of the residential real estate industry in the affected area including such factors as the prevailing and projected (i) [real estate taxes and sewer and water rates, (ii) gross operating maintenance costs (including insurance rates, governmental fees, cost of fuel and labor costs), (iii)] costs and availability of financing (including effective rates of interest), [(iv)] (ii) over-all supply of housing accommodations and over-all vacancy rates, (2) relevant data from the current and projected cost of living indices for the affected area, (3) such other data as may be made available to it. As soon as practicable after its creation and thereafter not later than July first of each year, a rent guidelines board shall file with the state division of housing and community renewal its findings for the preceding calendar year, and shall accompany such findings with a statement of the maximum rate or rates of rent adjustment, if any, for one or more classes of accommodation subject to this act, authorized for leases or other rental agreements commencing during the next succeeding twelve months. The standards for rent adjustments may be applicable for the entire county or may be varied according to such zones or jurisdictions within such county as the board finds necessary to achieve the purposes of this subdivision.
The standards for rent adjustments established annually shall be effective for leases commencing on October first of each year and during the next succeeding twelve months whether or not the board has filed its findings and statement of the maximum rate or rates of rent adjustment by July first of each year. If such lease is entered into before such filing by the board, it may provide for the rent to be adjusted by the rates then in effect, subject to change by the applicable rates of rent adjustment when filed, such change to be effective as of the date of the commencement of the lease. Said lease must provide that, if the new rates of rent adjustment differ for leases of different terms, the tenant has the option of changing the original lease term to any other term for which a rate of rent adjustment is set by the board, with the rental to be adjusted accordingly.
Where a city, town or village shall act to determine the existence of public emergency pursuant to section three of this act subsequent to the establishment of annual guidelines for rent adjustments of the accommodations subject to this act, the rent guidelines board as soon as practicable thereafter shall file its findings and rates of rent adjustment for leases or other rental agreements for the housing accommodations in such a city, town or village, which rates shall be effective for leases or other rental agreements commencing on or after the effective date of the determination.
§ 3. This act shall take effect immediately; provided, however, that the amendments to section 26-510 of the rent stabilization law of nineteen hundred sixty-nine made by section one of this act shall expire on
A. 8368 3
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; and provided, further, that the amendments to section 4 of the emergency tenant protection act of nineteen seventy-four made by section two 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, as amended.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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