What's happening
This bill requires property owners receiving tax abatements for major capital improvements in NYC to waive all related rent increases during the abatement period.
Why it matters
Limits rent increases tied to major capital improvements. Property owners who receive tax abatements for making major improvements can no longer pass any related rent increases onto tenants during the abatement period, rather than just waiving a portion as previously allowed. This increases tenant protections from rent hikes linked to these improvements.
Aligns property owner incentives with tenant affordability. By requiring a full waiver of rent adjustments during the abatement, the bill discourages owners from using public tax benefits as a way to justify higher rents, ensuring that public subsidies do not indirectly raise housing costs for tenants.
Applies prospectively and not retroactively. The new rule only affects alterations and improvements begun after the law takes effect, giving property owners clarity and avoiding disruption to existing agreements or renovations already underway.
Excludes certain buildings. Properties that are substantially rehabilitated while vacant or those renovated with significant government subsidies remain exempt, focusing the new requirements on typical rent-stabilized or rent-controlled buildings receiving standard tax abatements.
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Who cares
Headline styles
Limit Rent Hikes for Repairs
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 26
1 Co-sponsor
History
- Recommit, enacting clause stricken
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Rent Hikes After Repairs
In Assembly Committee · Housing · Sponsor Steven Cymbrowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5128
2019-2020 Regular Sessions
IN SENATE
April 10, 2019
Introduced by Sen. KAVANAGH -- 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 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09275-01-9
S. 5128 2
expiration of a tax abatement for alterations or improvements constituting 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.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York, in relation to waivers of rent adjustments
Purpose
To prevent landlords receiving J-51 tax abatement benefits from collect- ing any rent adjustment caused by a major capital improvement.
Summary of provisions
This bill would require landlords who receive tax abatement benefits, pursuant to the J-51 program, to file with the department of housing preservation and development (HPD) when applying for major capital improvement (MCI) rent adjustments and reduce their MCI increase by 100 percent of the total annual tax abatement benefits plus any tax benefits received prior to the application for the MCI.
Justification
This legislation would prevent owners of rent stabilized buildings from taking advantage of more than one program to reduce costs associated with rehabilitation or improvement efforts. While it is important to make sure buildings are being maintained, owners should not be compen- sated multiple times for the proper maintenance of their buildings. Additionally, improvements to a building increase the value of the structure and provide a third incentive for landlords to invest in reha- bilitation and improvement work. This legislation would continue to provide benefits to incentivize the proper maintenance of a building while eliminating the excessive compensation practices that currently take place.
Legislativehistory
2018: A5558(Cymbrowitz)- Ordered to third reading cal.394. 2017: A5558(Cymbrowitz)- Advanced to third reading cal.428 2016: A3727(Cymbrowitz)- Advanced to third reading cal.505 2015: A3727(Cymbrowitz)- Referred to Housing 2014: A5827(Cymbrowitz)- Passed Assembly 2013: A5827(Cymbrowitz)- Passed AssemblY
FISCAL IMPLICATIONS FOR STATE AND II
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.