Ban AC Surcharges for Renters

Section 2 amends section 6 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, by adding a new subdivision that would prohibit a landlord of any housing accommodation subject to rent regulation laws from impos- ing a surcharge for the use of a tenant-installed air conditioning unit, provided that the tenant pays for the electrical utility service.

Section 3 amends Section 26-512 of the administrative code of the City of New York by adding a new subdivision that would prohibit a landlord of any housing accommodation subject to such regulation laws from impos- ing a surcharge for the use of a tenant-installed air conditioning unit, provided that the tenant pays for the electrical utility service.

Section 4 amends subdivision 4 of section 4 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, by adding a new paragraph that would prohibit a landlord of any housing accommo- dation subject to rent regulation laws from imposing a surcharge for the use of a tenant-installed air conditioning unit, provided that the tenant pays for the electrical utility service.

Section 5 sets the effective date.

Difference between original and amended version (if applicable)

The effective date has changed to reflect the passage of the Housing Stability and Tenant Protection Act of 2019.

Justification

Nearly half of all New Yorkers live below or close to the poverty line. Accordingly, it is critical that New York City has protections in place to safeguard its residents' basic necessities, one of the most important of which is housing. With an average rent of over $1,000 in the City of New York, programs that reduce the rent burden are essential. One impor- tant example is New York City's system of rent stabilization, which provides a variety of tenant protections to over 2 million people.

Despite the high need for these tenant protections, many landlords are increasing the cost of housing by imposing non-rent fees on rent stabi- lized tenants. One major example, and the focus of this bill, is a surcharge for air conditioner units that tenants install in their apart- ments. While this type of surcharge is sometimes allowed in accordance with the operational bulletin 84-4 and Operational Bulletin 2005-01 issued by the NYS Division of Homes and Community Renewal, many land- lords do not follow the regulations set forth in the Operational Bulle- tin for when the surcharges can be applied. Also, the purported ration- ale was to take into account the increased wear on plumbing and electrical systems and the increased utility costs paid by landlords but these costs are already taken into account when calculating rent increases each year.

Most of the time, landlords add these surcharges without meeting any of the conditions set forth in Operational Bulletin, 2005-01. A recent survey of rent stabilized tenants indicates that 68% were charged a surcharge for their air conditioner or washing machine in the last year. These surcharges can add hundreds of dollars to a tenant's rent, making rent controlled and rent stabilized apartments unaffordable for low-in- come New Yorkers. Because these costs are already accounted for in the rent itself and to end the landlord's abuse of this system of appliance surcharges, this bill is necessary to protect low-income tenants in the City of New York and ensure that they are not being charged more than they legally owe for rent. This extra cost raises rents and makes rent controlled and rent stabilized apartments unaffordable for many New Yorkers.

Legislative history

2019: 5.3318 - Passed the Senate/A.2675 - Referred to Housing 2017-2018: 5.2367 - Referred to Housing, Construction and Community Development/A.1368 Referred to Housing 2015-2016: 5.3565 - Referred to Housing, Construction and Community Development/A.416 Referred to Housing 2013-2014: S.6110 - Referred to Housing, Construction and Community Development/A.8290 Referred to Housing

State and local fiscal implications

None.

Effective date

This act shall take effect immediately; provided that: (a) section 26-416 of the city rent and rehabilitation law as added by section one of this act shall remain in full force and effect only as long as the public emergency requires 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; and (b) the amendments to section 26-512 of chapter 4 of title 26 of the administrative code of the city of New York, made by section three 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.