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S2064Senate2019-2020 Session

Cut Rent for Utility Bills

Official title

“Requires rent reduction in cases of submetered utility service”

Sponsor José M. SerranoSD-29+1 co-sponsorAffects Housing
Status
In Senate Committee
Housing, Construction And Community Development
Impact
7/10
Significant
Passage
0%

Bill progress

Step 2 of 7

In committee · Housing, Construction And Community Development

What's happening

This bill requires rent reductions for tenants in submetered buildings to reflect utility costs previously included in rent.

Why it matters

  1. Ensures tenants aren’t double-billed for utilities. By requiring rent reductions equal to new submetered utility costs, the bill prevents landlords from charging tenants both a full rent (which previously included utilities) and separate utility costs, protecting renters from unfair increases.

  2. Mandates oversight and adjustment by state authorities. The Division of Housing and Community Renewal is directed to review current rent reduction standards and make necessary adjustments, which could improve consistency and fairness in how rent reductions are calculated across different properties.

  3. Creates a tenant appeals process. Tenants who feel their rent reductions do not match their actual utility costs gain a formal path to challenge and correct these discrepancies, increasing tenant protections and accountability for landlords.

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Who cares

Headline styles

Cut Rent for Utility Bills

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
José M. Serrano

Senator · Senate District 29

Chair, Cultural Affairs, Tourism, Parks And Recreation

1 Co-sponsor

History

  1. Referred to housing, construction and community development
  2. Referred to housing, construction and community development

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2064

2019-2020 Regular Sessions

IN SENATE

January 22, 2019

Introduced by Sens. SERRANO, KRUEGER -- 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 multiple dwelling law, in relation to rent reduction in cases of submetered utility service

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The multiple dwelling law is amended by adding a new section 302-d to read as follows:

§ 302-d. Provisions relating to multiple dwellings with submetering. 1. Any tenant residing in a building which is subject to submetering of utilities shall receive a reduction in rent which is equal to the amount of the utility costs for which such tenant is responsible, where such costs were previously included in such tenant's rent.

2. The division of housing and community renewal shall, within ninety days of the effective date of this section, review the standard and actual rent reductions for submetered properties and shall require increases where the division determines necessary. The division shall develop a process for tenants to appeal their rent reduction if it does not accurately reflect the amount they are required to pay for submetered utilities.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD03559-01-9

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the multiple dwelling law, in relation to rent reduction in cases of submetered utility service

Purpose

The bill would require a rent reduction equal to the amount of the addi- tional charge for the utilities for tenants in buildings which convert to submetering of utilities.

Summary of provisions

The bill proposes adding a section 302-d to the multiple dwelling law which would, in apartment buildings which convert to submetering, require a rent reduction equal to the additional utility cost, and compel the Department of Housing and Community Renewal to promulgate an appeals process by which tenants can challenge the amount of the reduction and have it adjusted. Also, within ninety days of the enact- ment of this legislation, the DHCR must review the rent reductions which have already been made in submetered buildings in order to ensure that they are equal to the amount of the utility charges.

Justification

Many residential apartment buildings in New York include charges for utilities in the rent. However an increasing number of landlords are installing "submeters" which monitor utility use individually for each unit in the building. After the submeters are installed, the landlords charge tenants for utilities in addition to the rent. Under current law, the additional utility charges are accompanied by a rent reduction set by the Division of Housing and Community Renewal. These rent reductions, however, are based on the number of rooms in an apartment and do not reflect the actual utility usage costs of the tenants. This leads to many tenants having to pay more than they had agreed to pay when they signed their lease in order to stay in their apartments after their building converts to submetering.

This bill mandates that the rent reductions which tenants receive after their building is converted must be based on their actual utility costs in order to protect against an increase in the cost of living for tenants. This legislation would also require the DHCR to, within 90 days, review the rent reductions which have already been made, and to modify them, if necessary, in order to bring them in line with tenants' actual costs. The bill would also require the DHCR to create an appeals process by which tenants can challenge their rent reductions.

Currently rent reductions are based on the New York city Housing Vacancy Survey's average monthly costs for utilities. In the Survey, tenants were asked to "estimate" their monthly utility costs. This produced highly questionable data, upon which the DHCR's rent reductions were based.

Legislative history

2009-2010: Senate & Assembly Referred to Housing, Construction & Commu- nity Development

2011-2012: S.2757- Referred to Housing, Construction and Community Development 2013-2014: S.919- Referred to Housing, Construction and Community Devel- opment 2015-2016: S.1160 - Referred to Housing, Construction and Community Development 2017-2018: S.3448 - Referred to Housing, Construction and Community Development

Fiscal implications

None.

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.