What's happening
This bill caps annual rent increases due to major capital improvements at 6% for regulated apartments in New York.
Why it matters
Limits rental cost spikes for tenants. By capping rent increases from major capital improvements at 6% per year, tenants in regulated apartments are protected from sudden, large rent hikes that could otherwise follow renovations, making housing costs more predictable and affordable.
Spreads out improvement costs for landlords. Landlords can still recover the costs of building improvements, but any increase above 6% per year must be deferred and phased in over future years, avoiding excessive financial strain on tenants at once.
Closes a major loophole in rent regulation. Previously, landlords could implement much larger rent increases in one year after making improvements, sometimes leading to displacement. This bill directly addresses that by instituting a hard annual cap, strengthening tenant protections.
Impacts long-term investment decisions. The cap may influence how and when landlords choose to invest in major upgrades, potentially encouraging more careful planning and gradual improvements rather than large, disruptive projects intended to maximize immediate rent increases.
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Who cares
Headline styles
Cap Rent Hikes at 6%
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2203
2019-2020 Regular Sessions
IN SENATE
January 23, 2019
Introduced by Sens. BAILEY, MAYER, SEPULVEDA -- 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, in relation to capping the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 3 of 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, as amended by section 30 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
(3) there has been since January first, nineteen hundred seventy-four a major capital improvement required for the operation, preservation or maintenance of the structure. An adjustment under this paragraph shall be in an amount sufficient to amortize the cost of the improvements pursuant to this paragraph over an eight-year period for a building with thirty-five or fewer housing accommodations, or a nine-year period for a building with more than thirty-five housing accommodations, for any determination issued by the division of housing and community renewal after the effective date of the rent act of 2015; provided that the collection of any increase in the legal regulated rent for any housing accommodation pursuant to this paragraph shall not exceed six percent in any year from the effective date of the order granting the increase over the legal regulated rent registered pursuant to section twelve-a of this act, with collectibility of any dollar excess above said sum to be spread forward in similar increments and added to the legal regulated rent as established or set in future years. In no event shall more than one six percent increase in the legal regulated rent pursuant to this paragraph be collected in the same year, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05505-01-9
S. 2203 2
§ 2. This act shall take effect immediately; provided, however, that the amendment to section 4 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, as amended.
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 seven- ty-four, in relation to capping the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent
Purpose or general idea of bill
This bill creates consistency between New York City and the ETPA coun- ties (Westchester, Rockland, and Nassau) by capping MCI costs at six percent of the legal regulated rent.
Summary of specific provisions
Section 1 amends paragraph 3 of subdivision d of section 6 of section 4 of chapter 576 of the laws of 1974, the emergency tenant protection act of 1974, as amended by section 30 of part A of chapter 20 of the laws of 2015, to ensure the collectible increase in rent to amortize the cost of the major capital improvement shall not exceed six percent in any year from the effective date of the order granting the increase over the legal regulated rent registered pursuant to section twelve-a of this act. The collectability of any dollar excess above said sum would be spread forward in similar increments and added to the legal regulated rent as established or set in future years.
Section 2 establishes the effective date.
Justification
This bill creates consistency between rent stabilized apartments in New York City and the other ETPA counties, Nassau, Rockland and Westchester. Currently, Section 9 of NYCRR limits MCI increases in New York City to a maximum of six percent of the base rent. Because the law is silent, DHCR has administratively capped the MCI increase outside of New York City at fifteen percent. This bill corrects this oversight and establishes a fair and consistent level for all rent stabilized apartments.
Prior legislative history
2017-18: S3538 - Referred to Housing, Construction and Community
Fiscal implications
None.
Effective date
This act shall take effect immediately: however, it expires on the expi- ration of the ETPA.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.