What's happening
This bill prohibits landlords from collecting retroactive rent increases for major capital improvements until their application is officially approved.
Why it matters
Protects tenants from unexpected, large retroactive rent bills. by making sure rent increases for major building improvements can only start after official approval, not before—helping renters avoid financial shocks or sudden debt.
Eliminates uncertainty and dispute. over when rent increases may be collected, making it clearer for both tenants and landlords and reducing the risk of legal conflicts regarding backdated rent hikes.
Incentivizes timely processing of improvement applications. by landlords, since they cannot benefit from delays in approval to collect larger sums retroactively, potentially speeding up bureaucratic processes.
Aligns rent increase timing with government oversight. , ensuring that only improvements that meet legal standards and receive formal approval can result in higher rents—strengthening tenant protections and regulatory compliance.
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Who cares
Headline styles
Ban Retroactive Rent Hikes
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
869
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sens. BAILEY, MAYER, SEPULVEDA, SERRANO -- 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, the administrative code of the city of New York and the emergency housing rent control law, in relation to prohibiting the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 6 of section 4 of chapter 576 of the laws of 1974 constituting the emergency tenant protection act of nineteen seventyfour is amended by adding a new subdivision h to read as follows:
h. Notwithstanding any provision of law or rule or regulation to the contrary, any adjustment in the legal regulated rent based upon a major capital improvement shall be effective upon approval of the application therefor. No increase may be collected for the period of time prior to the date of approval of the application.
§ 2. Section 26-512 of the administrative code of the city of New York is amended by adding a new subdivision h to read as follows:
h. Notwithstanding any provision of law or rule or regulation to the contrary, any adjustment in the legal regulated rent based upon a major capital improvement shall be effective upon approval of the application therefor. No increase may be collected for the period of time prior to the date of approval of the application.
§ 3. Subparagraph 10 of the second undesignated paragraph of paragraph (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, as amended by
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02107-01-5
section 25 of part B of chapter 97 of the laws of 2011, is amended and a new subparagraph 11 is added to read as follows:
(10) the presence of unique or peculiar circumstances materially affecting the maximum rent has resulted in a maximum rent which is substantially lower than the rents generally prevailing in the same area for substantially similar housing accommodations[.]; or (11) notwithstanding any provision of law or rule or regulation to the contrary, any adjustment in the legal regulated rent based upon a major capital improvement shall be effective upon approval of the application therefor. No increase may be collected for the period of time prior to the date of approval of the application.
§ 4. Paragraph 1 of subdivision g of section 26-405 of the administrative code of the city of New York is amended by adding a new subparagraph (p) to read as follows:
(p) Notwithstanding any provision of law or rule or regulation to the contrary, any adjustment in the legal regulated rent based upon a major capital improvement shall be effective upon approval of the application therefor. No increase may be collected for the period of time prior to the date of approval of the application.
§ 5. This act shall take effect immediately; provided that:
a. 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 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; and
b. the amendments to section 26-405 of the city rent and rehabilitation law made by section four of this act shall remain in full force and effect only as long as the public emergency requiring 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.
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, the administrative code of the city of New York and the emer- gency housing rent control law, in relation to prohibiting the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement
Purpose or general idea of bill
This bill prohibits the temporary retroactive rent increase or surcharge prior to the approval of the MCI application for rent stabilized apart- ments. Under current law, landlords are entitled to collect a retroac- tive surcharge, which is the amount owed between the effective date and the collectable date of the DHCR order granting the MCI. If the applica- tion is approved, in addition to the increase becoming a part of the tenants' base rent, the landlord is entitled to collect the increase retroactively, between the "effective date" and "collectable date," in the form of a temporary surcharge. The rent increase (the surcharge and the base rent increase) cannot be collected from the tenants until the application is approved, so the surcharge is collected temporarily in addition to the increased base rent after the collectable date. This bill would bring rent stabilized apartments in line with rent-controlled apartments, eliminating the retroactive temporary surcharge and allowing landlords to begin collecting the increased base rent upon the collecta- ble date or the date the application is approved.
Summary of specific provisions
Section 1 amends section 6 of section 4 of chapter 576 of the laws of 1974 by adding a new subdivision prohibiting any adjustment in the legal regulated rent based upon a major capital improvement until the date of approval of the application.
Section 2 amends the administrative code of the city of New York by adding a new subdivision prohibiting any adjustment in the legal regu- lated rent based upon a major capital improvement until the date of approval of the application.
Section 3 amends paragraph (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946 by prohibiting any adjustment in the legal regu- lated rent based upon a major capital improvement until the date of approval of the application.
Section 4 amends the administrative code of the city of New York by adding a new subdivision prohibiting any adjustment in the legal regu- lated rent based upon a major capital improvement until the date of approval of the application.
Section 5 establishes the effective date.
Justification
Under current law, in addition to the cost of an MCI becoming part of the tenants' base rent, the landlord is entitled to collect a temporary retroactive surcharge, which is the amount owed between the effective date and the collectable date of the DHCR order granting the MCI. This bill will eliminate the undue burden created by the combined effect of the permanence of the increase and the retroactive temporary surcharge by eliminating the temporary surcharge. This will create consistency between rent stabilized and rent controlled apartments, eliminating the retroactive temporary surcharge and allowing landlords to begin collect- ing the increased base rent upon the collectable date or the date the application is approved.
Prior legislative history
2019-20: Referred to Housing, Construction and Community Development
2021-22: Referred to Housing, Construction and Community Development
2023-24: Referred to Housing, Construction and Community Development
Fiscal implications
None.
Effective date
Immediately, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.