What's happening
This bill requires rent increases for regulated apartments to be based on the rent actually paid, not the higher legal regulated rent, with exceptions for certain federally assisted buildings.
Why it matters
Closes a major loophole that allowed landlords to raise rents to the maximum legal regulated rent, even if tenants had been paying a discounted or preferential rate, making rent increases more predictable and affordable for many tenants.
Limits landlords’ discretion by requiring that future rent increases be calculated from the rent actually paid by the tenant, not a higher theoretical maximum, thus providing stronger protections against sudden, large rent hikes upon lease renewal or vacancy.
Includes specific exceptions for buildings with federal project-based rental assistance (such as Section 8), allowing those landlords to use the higher legal regulated rent in certain cases, which could influence how affordable housing programs interact with local rent regulations.
Adds new tenant protections by stating that landlords cannot benefit from these provisions if a vacancy results from the landlord’s failure to maintain the apartment in a habitable condition, incentivizing better maintenance and discouraging neglect as a tactic to increase rents.
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Who cares
Headline styles
Limit Rent Increases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Recommit, enacting clause stricken
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6089
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
Introduced by Sen. RIVERA -- 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, and the administrative code of the city of New York, in relation to the regulation of amount of rent charged
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (a-2) of section 10 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 11 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
(a-2) [Provides that where] Where the amount of rent charged to and paid by the tenant is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation [which may] that shall be charged [upon renewal or upon vacancy thereof, may, at the option of] by the owner[,] shall be based upon such previously established [legal regulated] lower rent charged to and paid by the tenant, as adjusted by the most recent applicable guidelines increases and other increases authorized by law; provided, however, that for buildings that are subject to this statute by virtue of a regulatory agreement with a local government agency and which buildings receive federal project based rental assistance administered by the United States department of housing and urban development or a state or local section eight administering agency, where the rent set by the federal, state or local governmental agency is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation which may be charged upon renewal or upon vacancy thereof, may, at the option of the owner, be based upon such previously established legal regulated rent, as adjusted by the most recent applicable guidelines increases and other increases authorized by law; and further
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11863-01-9
S. 6089 2
provided that such vacancy shall not be caused by the failure of the owner or an agent of the owner, to maintain the housing accommodation in compliance with the warranty of habitability set forth in subdivision one of section two hundred thirty-five-b of the real property law. Such housing accommodation shall be excluded from the provisions of this act pursuant to paragraph thirteen of subdivision a of section five of this act when subsequent to vacancy: (i) such legal regulated rent is two thousand five hundred dollars per month, or more, for any housing accommodation that is, or becomes, vacant after the effective date of the rent act of 2011 but prior to the effective date of the rent act of 2015 or (ii) such legal regulated rent is two thousand seven hundred dollars per month or more for any housing accommodation that is or becomes vacant on or after the rent act of 2015; starting on January 1, 2016, and annually thereafter, the maximum legal regulated rent for this deregulation threshold, shall also be increased by the same percent as the most recent one year renewal adjustment, adopted by the applicable rent guidelines board pursuant to the rent stabilization law.
§ 2. Paragraph 14 of subdivision c of section 26-511 of the administrative code of the city of New York, as amended by section 12 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
(14) [provides that] where the amount of rent charged to and paid by the tenant is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation [which may] that shall be charged [upon renewal or upon vacancy thereof, may, at the option of] by the owner[,] shall be based upon such previously established [legal regulated] lower rent charged to and paid by the tenant, as adjusted by the most recent applicable guidelines increases and any other increases authorized by law; provided, however, that for buildings that are subject to this statute by virtue of a regulatory agreement with a local government agency and which buildings receive federal project based rental assistance administered by the United States department of housing and urban development or a state or local section eight administering agency, where the rent set by the federal, state or local governmental agency is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation which may be charged upon renewal or upon vacancy thereof, may, at the option of the owner, by based upon such previously established legal regulated rent, as adjusted by the most recent applicable guidelines increases and other increases authorized by law; and further provided that such vacancy shall not be caused by the failure of the owner or an agent of the owner, to maintain the housing accommodation in compliance with the warranty of habitability set forth in subdivision one of section two hundred thirty-five-b of the real property law. Such housing accommodation shall be excluded from the provisions of this code pursuant to section 26-504.2 of this chapter when, subsequent to vacancy: (i) such legal regulated rent prior to vacancy is two thousand five hundred dollars per month, or more, for any housing accommodation that is or becomes vacant after the effective date of the rent act of 2011 but prior to the effective date of the rent act of 2015 or (ii) such legal regulated rent is two thousand seven hundred dollars per month or more, provided, however that on January 1, 2016, and annually thereafter, the maximum legal regulated rent for this deregulation threshold shall be adjusted by the same percentage as the most recent one year renewal adjustment as adjusted by the relevant rent guidelines board, for any housing accommodation that is or becomes vacant on or after the rent act of 2015.
S. 6089 3
§ 3. This act shall take effect immediately; provided, however, that the amendments to 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; and provided further the amendments to section 26-511 of the administrative code of the city of New York made by section two 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.
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, and the administrative code of the city of New York, in relation to the regulation of amount of rent charged
Purpose
The purpose of this bill is to prohibit landlords from taking away pref- erential rent from a rent regulated tenant.
Summary of specific provisions
Section 1 amends subdivision (a-2) of section 10 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four to establish that any preferential rent given to a tenant that is lower than the legal rent shall be the new legal maximum rent for the unit, while also ensuring that this does not apply to any building that has any regulatory agreement with its local government that receives federal project based rental assistance such as affordable housing projects.
Section 2 amends paragraph 14 of subdivision c of section 26-511 of the administrative code of the city of New York to establish that any pref- erential rent given to a tenant that is lower than the legal rent shall be the new legal maximum rent for the unit, while also ensuring that this does not apply to any building that has any regulatory agreement with its local government that receives federal project based rental assistance such as affordable housing projects.
Section 3 establishes the effective date.
Justification
Landlords currently have the ability to charge a lower rent than that of the legal regulated rent, which is also known as preferential rent. They also have the right to remove that preferential rent at the renewal of any lease. The reason landlords use a preferential rent is because many people who are trying to rent cannot reasonably afford the current legal rent in many neighborhoods across New York City (NYC). According to a report by the Independent Budget Office in NYC, there was about a 6% increase from 2010 to 29% in 2017, of all rent stabilized units receiv- ing a preferential rent (May 2019). This is alarming, particularly know- ing that many landlords have taken advantage by obscuring the legal rent and then driving out tenants with an unexpected rent hike. Usually these rent hikes are above 10% of the rent they currently pay, which in turn allows landlords to get a 20% vacancy bonus on the legal rent, moving them closer to deregulating the units.
There are many tools landlords have been able to use to increase rents, displace tenants and gentrify neighborhoods. In order to address the root issue that the legislature caused with a 2002 amendment, this bill will reinstate the protections that tenants once had by ensuring that any preferential rent given will be the new legal rent and increase, according to the Rent Guidelines Board.
Legislative history
New Bill.
Fiscal implications
To be determined.
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.