New York State Bill A00002-A
[ Summary ]
[ Memo ]
S T A T E O F N E W Y O R K
________________________________________________________________________
2--A
1997-1998 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 8, 1997
___________
Introduced by M. of A. LOPEZ, SILVER, MEEKS, SANDERS, PHEFFER, DINOWITZ,
GOTTFRIED, GRANNIS, WRIGHT -- Multi-Sponsored by -- M. of A. ARROYO,
BOYLAND, BRENNAN, CLARK, COLTON, CROWLEY, DAVIS, DIAZ, FARRELL, FELD-
MAN, GLICK, GREEN, GREENE, KATZ, KAUFMAN, KLEIN, LENTOL, MAYERSOHN,
McLAUGHLIN, NORMAN, ORTIZ, POLONETSKY, PRETLOW, RIVERA, STRINGER,
TOWNS, WEINSTEIN, WEISENBERG -- read once and referred to the Commit-
tee on Housing -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
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 conforming the method
for setting rents for rent controlled apartments to the methodology
used for rent stabilized apartments providing for the establishment of
rent guidelines and applicable adjustments and making transitional
provisions for the implementation of such methodology, and creating
statutory tenancies in rent stabilized apartments; to amend the gener-
al business law, in relation to conversion of residential property to
cooperative or condominium ownership; raising percentage needed to
declare non-eviction plans effective; providing for establishment of
certain reserve funds; and changing the computation of excessive
vacancies which prevents conversion and eliminating the filing of
eviction plans with the attorney general in condominium and cooper-
ative residential conversions and repealing paragraph (c) of subdivi-
sion 1, subparagraph (v) of paragraph (c) and paragraph (d) of subdi-
vision 2 of section 352-eee and paragraph (c) of subdivision 1,
subparagraph (v) of paragraph (c) and paragraph (d) of subdivision 2
of section 352-eeee of the general business law relating thereto; and
to amend the administrative code of the city of New York, the emergen-
cy tenant protection act of nineteen seventy-four and the emergency
rent control law, in relation to extending the length of time over
which major capital improvement expenses may be recovered altering
vacancy allowance provisions and providing for rent increases for
certain housing accommodations and to amend chapter 576 of the laws of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
{ } is old law to be omitted.
LBD01457-05-7
A. 2--A 2
1974, amending the emergency housing rent control law relating to the
control of and stabilization of rent in certain cases, chapter 329 of
the laws of 1963, amending the emergency housing rent control law
relating to the recontrol of rents in certain cases, chapter 555 of
the laws of 1982, amending the general business law and the adminis-
trative code of the city of New York relating to conversion of rental
residential property to cooperative or condominium ownership in the
city of New York and chapter 402 of the laws of 1983, amending the
general business law relating to conversion of rental residential
property to cooperative or condominium ownership in certain munici-
palities in the counties of Nassau, Westchester and Rockland, in
relation to making such provisions ongoing and to repeal subdivision 2
of section 1 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "Rent and Tenant Protection Act of 1997".
3 S 2. Legislative Findings. Legislative findings and declaration. The
4 legislature hereby finds and declares that the public emergency which
5 led to the enactment of the laws regulating residential rents and
6 evictions continues to exist, that such emergency continues to necessi-
7 tate the intervention of state and local governments in order to prevent
8 speculative, unwarranted and abnormal increases in rents and unjust and
9 arbitrary evictions so long as such emergency exists, without further
10 periodic authorization by the legislature; that, because of the shortage
11 of decent, safe, and available housing, market forces do not operate
12 properly, and it is necessary therefore to prevent the exaction of
13 unjust or unreasonable rents and rental agreements, and to forestall
14 eviction and other disruptive practices tending to produce threats to
15 the public health, safety and general welfare; that the general welfare
16 depends in part on the maintenance and preservation of the existing
17 stock of privately owned rental housing; that to assure such maintenance
18 and preservation, responsible owners should be encouraged to own, invest
19 in and maintain such housing without exacting unwarranted rent increases
20 or rental agreements; that the existing laws regulating residential
21 rents and evictions would better promote equity and serve the public
22 interest if certain amendments were made thereto, including the estab-
23 lishment of a guidelines adjustment system for rent controlled housing
24 accommodations, and the substitution of statutory tenancies for the
25 current renewal lease system for rent stabilized housing accommodations,
26 including a limitation on the allowability of any vacancy rental
27 increase by a rent guidelines board.
28 The legislature further finds and declares that additional protections
29 are needed in the laws governing the conversion of rental housing to
30 cooperative and condominium ownership in order to protect tenants in
31 possession who do not desire or who are unable to afford to purchase
32 their units from unreasonable rent increases and imminent eviction
33 during the conversion process, to insure that scarce rental housing
34 units are not deliberately held off the market in preparation for such
35 conversions at a time when many areas are experiencing a critical short-
36 age of affordable rental housing, to insure that housing converted to
37 cooperative and condominium ownership is managed with a degree of
A. 2--A 3
1 participation and control by cooperators and individual condominium
2 owners who live in their buildings, and that funds are set aside in such
3 buildings for the purpose of making capital repairs, replacements and
4 improvements.
5 The legislature further finds and declares the necessity to balance
6 the concern for insuring adequate incentives for investment in build-
7 ing-wide major capital improvements or improvements in individual hous-
8 ing accommodations in order to preserve and improve the housing stock
9 with the concern for maintaining the affordability of such housing
10 stock.
11 The legislature therefore declares that the provisions of this act are
12 necessary to protect the public health, safety and general welfare. The
13 necessity in the public interest for the provisions hereinafter enacted
14 is hereby declared as a matter of legislative determination.
15 S 3. Subdivision b of section 4 of section 4 of chapter 576 of the
16 laws of 1974, constituting the emergency tenant protection act of nine-
17 teen seventy-four, as amended by chapter 486 of the laws of 1976, the
18 opening paragraph as amended by chapter 403 of the laws of 1983 and the
19 second and third undesignated paragraphs as amended by chapter 330 of
20 the laws of 1980, is amended to read as follows:
21 b. A county rent guidelines board shall establish annually guidelines
22 for rent adjustments which, at its sole discretion may be varied and
23 different for and within the several zones and jurisdictions of the
24 board, and in determining whether rents for housing accommodations as to
25 which an emergency has been declared pursuant to this act shall be
26 adjusted, shall consider among other things (1) the economic condition
27 of the residential real estate industry in the affected area including
28 such factors as the prevailing and projected (i) real estate taxes and
29 sewer and water rates, (ii) gross operating AND maintenance costs
30 (including insurance rates, governmental fees, cost of fuel and labor
31 AND ADMINISTRATIVE costs), (iii) costs and availability of financing
32 (including effective rates of interest), (iv) over-all supply of housing
33 accommodations and over-all vacancy rates, (V) GROSS RENTAL INCOME,
34 INCLUDING INCOME FROM OTHER THAN RESIDENTIAL RENTS, (VI) ECONOMIC BENE-
35 FITS, OTHER THAN RENTAL INCOME, DERIVED FROM THE OWNERSHIP AND UPGRADING
36 OF RENTAL PROPERTY, (2) relevant data from the current and projected
37 cost of living indices for the affected area, (3) such other data as
38 may be made available to it. IN CALCULATING LABOR AND ADMINISTRATIVE
39 COSTS, THE RENT GUIDELINES BOARD SHALL CONSIDER THE FEASIBILITY OF
40 IMPUTING A VALUE TO THE ACTUAL, VERIFIABLE UNSALARIED LABOR AND ADMINIS-
41 TRATIVE TASKS PERFORMED BY BUILDING OWNERS OR MEMBERS OF THEIR IMMEDIATE
42 FAMILY WHO RESIDE WITH THEM. IF THE INCLUSION OF THE VALUE OF SUCH LABOR
43 AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE BY THE BOARD, THEY SHALL BE
44 INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN. THE RENT GUIDELINES
45 BOARD SHALL ANNUALLY REQUIRE A SAMPLE OF LANDLORDS SUBJECT TO REGULATION
46 UNDER THIS ACT TO MAKE AVAILABLE THEIR BOOKS AND RECORDS REGARDING
47 INCOME, EXPENDITURES, TAX BENEFITS AND FINANCING ARRANGEMENTS FOR EXAM-
48 INATION BY THE BOARD AND THE BOARD SHALL UTILIZE THE RESULTS OF SUCH
49 SAMPLE AS ONE OF THE CRITERIA UPON WHICH THEIR FINDINGS ARE BASED. SUCH
50 SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESENTATIVE OF THE TYPES OF
51 BUILDINGS WHICH ARE SUBJECT TO REGULATION UNDER THIS LAW. ANY INFORMA-
52 TION PROVIDED BY LANDLORDS PURSUANT TO THIS SUBDIVISION REGARDING AN
53 INDIVIDUAL BUILDING OR GROUP OF BUILDINGS SHALL NOT BE SUBJECT TO THE
54 FREEDOM OF INFORMATION LAW AND THE RENT GUIDELINES BOARD SHALL SAFEGUARD
55 THE CONFIDENTIALITY OF SUCH INFORMATION PROVIDED HOWEVER THAT THE BOARD
56 SHALL MAKE AVAILABLE TO THE PUBLIC CUMULATIVE AND STATISTICAL RESULTS OF
A. 2--A 4
1 THE REPRESENTATIVE SAMPLE OF BOOKS AND RECORDS REQUIRED HEREIN. As soon
2 as practicable after its creation and thereafter not later than {July}
3 OCTOBER first of each year, a rent guidelines board shall file with the
4 state division of housing and community renewal its findings for the
5 preceding calendar year, and shall accompany such findings with a state-
6 ment of the maximum rate or rates of rent adjustment, if any, for one or
7 more classes of accommodation subject to this act, authorized for leases
8 or other rental agreements commencing during the next succeeding twelve
9 months. The standards for rent adjustments may be applicable for the
10 entire county or may be varied according to such zones or jurisdictions
11 within such county as the board finds necessary to achieve the purposes
12 of this subdivision. THE ADDITIONAL ALLOWANCE, IF ANY, FOR LEASES ON
13 VACANT APARTMENTS SHALL NOT EXCEED FIVE PERCENT.
14 The standards for rent adjustments established annually shall be
15 effective for leases commencing on {October} JANUARY first of each year
16 and during the next succeeding twelve months whether or not the board
17 has filed its findings and statement of the maximum rate or rates of
18 rent adjustment by {July} OCTOBER first of each year. If such lease is
19 entered into before such filing by the board, it may provide for the
20 rent to be adjusted by the rates then in effect, subject to change by
21 the applicable rates of rent adjustment when filed, such change to be
22 effective as of the date of the commencement of the lease. Said lease
23 must provide that, if the new rates of rent adjustment differ for leases
24 of different terms, the tenant has the option of changing the original
25 lease term to any other term for which a rate of rent adjustment is set
26 by the board, with the rental to be adjusted accordingly.
27 Where a city, town or village shall act to determine the existence of
28 public emergency pursuant to section three of this act subsequent to the
29 establishment of annual guidelines for rent adjustments of the accommo-
30 dations subject to this act, the rent guidelines board as soon as prac-
31 ticable thereafter shall file its findings and rates of rent adjustment
32 for leases or other rental agreements for the housing accommodations in
33 such a city, town or village, which rates shall be effective for leases
34 or other rental agreements commencing on or after the effective date of
35 the determination.
36 S 4. Subdivisions c and d of section 4 of section 4 of chapter 4 of
37 chapter 576 of the laws of 1974, constituting the emergency tenant
38 protection act of nineteen seventy-four, are relettered subdivisions d
39 and e and a new subdivision c is added to read as follows:
40 C. IN FURTHERANCE OF ITS RESPONSIBILITY TO ENFORCE THIS ACT, THE RENT
41 GUIDELINES BOARD SHALL BE EMPOWERED TO ADMINISTER OATHS, ISSUE SUBPOE-
42 NAS, CONDUCT INVESTIGATIONS, MAKE INSPECTIONS AND DESIGNATE OFFICERS TO
43 HEAR AND REPORT.
44 S 5. Section 4 of section 4 of chapter 576 of the laws of 1974,
45 constituting the emergency tenant protection act of nineteen seventy-
46 four, is amended by adding a new subdivision f to read as follows:
47 F. NOTWITHSTANDING ANY PROVISIONS OF THIS ACT TO THE CONTRARY:
48 (1) EFFECTIVE ON AND AFTER JANUARY 1, 1998 THE RENT ADJUSTMENTS ESTAB-
49 LISHED PURSUANT TO THIS SECTION SHALL BE APPLICABLE TO VACANCY LEASES
50 WHICH COMMENCE DURING THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE
51 ADJUSTMENT IS ESTABLISHED AND THE ADJUSTMENT FOR RENEWAL LEASES SHALL
52 CONSTITUTE THE RENT ADJUSTMENTS PROVIDED FOR IN SUBDIVISION D OF SECTION
53 TEN OF THIS ACT EFFECTIVE THE FIRST DAY OF JANUARY FOLLOWING THE YEAR IN
54 WHICH THE ADJUSTMENT IS ESTABLISHED.
55 (2) NO LATER THAN OCTOBER 1, 1997 EACH RENT GUIDELINES BOARD SHALL
56 ESTABLISH TRANSITIONAL GUIDELINES APPLICABLE TO LEASES WHICH EXPIRE
A. 2--A 5
1 BETWEEN JANUARY 1,1998 AND DECEMBER 31, 1998. NO LATER THAN OCTOBER 1,
2 1998 EACH GUIDELINE BOARD SHALL ESTABLISH TRANSITIONAL GUIDELINES APPLI-
3 CABLE TO LEASES WHICH EXPIRE BETWEEN JANUARY 1, 1999 AND DECEMBER 31,
4 1999. SUCH TRANSITIONAL ADJUSTMENT SHALL BE A PRO-RATA PORTION OF THE
5 ONE OR TWO YEAR RENEWAL ADJUSTMENTS.
6 S 6. Subdivision a of section 7 of section 4 of chapter 576 of the
7 laws of 1974, constituting the emergency tenant protection act of nine-
8 teen seventy-four, is amended to read as follows:
9 a. In order to collect a rent adjustment authorized pursuant to the
10 provisions of {subdivision b of} section four, the owner of housing
11 accommodations subject to this act located in a city having a population
12 of less than one million or a town or village must file with the state
13 division of housing and community renewal {on a form which it shall
14 prescribe} AS PART OF EACH REQUIRED REGISTRATION, a written certif-
15 ication that he is maintaining and will continue to maintain all
16 services furnished on the date upon which this act becomes a law or
17 required to be furnished by any law, ordinance or regulation applicable
18 to the premises. In addition to any other remedy afforded by law, any
19 tenant may apply to the state division of housing and community renewal
20 for a reduction in the rent to the level in effect prior to its most
21 recent adjustment, OR ON OR AFTER JANUARY 1, 1998, ITS MOST RECENT
22 INCREMENTAL ADJUSTMENT, and the state division of housing and community
23 renewal {may} SHALL so reduce the rent if it finds that the owner has
24 failed to maintain such services. WHERE THE RENTAL BEING CHARGED FOR A
25 HOUSING ACCOMMODATION IS THE INITIAL LEGAL REGULATED RENT, THE STATE
26 DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL REDUCE THE RENT BY THE
27 GUIDELINES RATE OF ADJUSTMENT WHICH WOULD HAVE AFFECTED THE TENANT`S
28 LEASE HAD THE LEASE BEEN A LEASE FOR A HOUSING ACCOMMODATION PREVIOUSLY
29 SUBJECT TO THIS ACT. The owner shall be supplied with a copy of the
30 application and shall be permitted to file an answer thereto. A hearing
31 may be held upon the request of either party, or the state division of
32 housing and community renewal may hold a hearing upon its own motion.
33 The state division of housing and community renewal may consolidate the
34 proceedings for two or more petitions applicable to the same building.
35 If the state division of housing and community renewal finds that the
36 owner has knowingly filed a false certification, it shall, in addition
37 to abating the rent, assess the owner with the reasonable costs of the
38 proceeding, including reasonable attorneys` fees, and impose a penalty
39 not in excess of two hundred fifty dollars for each false certification.
40 S 7. Section 10 of section 4 of chapter 576 of the laws of 1974,
41 constituting the emergency tenant protection act of nineteen seventy-
42 four, is amended by adding two new subdivisions d and e to read as
43 follows:
44 D. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS ACT, ON OR AFTER
45 JANUARY 1, 1998:
46 (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
47 THE OWNER IS ENTITLED, SHALL BE REMOVED FROM ANY HOUSING ACCOMMODATION
48 WHICH IS SUBJECT TO REGULATION UNDER THIS ACT BY ACTION TO EVICT OR TO
49 RECOVER POSSESSION, OR OTHERWISE, NOR SHALL ANY PERSON ATTEMPT SUCH
50 REMOVAL OR EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT THAT THE
51 TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
52 HAS EXPIRED OR OTHERWISE TERMINATED, AND NOTWITHSTANDING ANY CONTRACT,
53 LEASE AGREEMENTS, OR OBLIGATION HERETOFORE OR HEREAFTER ENTERED INTO
54 WHICH CONFLICTS WITH THE PROVISIONS OF THIS ACT, EXCEPT ON ONE OR MORE
55 OF THE GROUNDS SET FORTH IN THIS ACT, OR THE REGULATIONS PROMULGATED
56 PURSUANT TO THIS ACT, INCLUDING ANY PROVISION OF THIS ACT WHICH PERMITS
A. 2--A 6
1 AN OWNER TO REFUSE TO RENEW A LEASE SUBJECT TO THE FOLLOWING: NO
2 PROCEEDING TO RECOVER POSSESSION FOR (A) THE USE OF THE HOUSING ACCOMMO-
3 DATION BY AN OWNER OR A MEMBER OF THE OWNER`S IMMEDIATE FAMILY OR (B) A
4 TENANT`S FAILURE TO OCCUPY THE HOUSING ACCOMMODATION AS HIS OR HER
5 PRIMARY RESIDENCE SHALL BE COMMENCED UNLESS THE TENANT HAS BEEN NOTIFIED
6 IN WRITING OF THE OWNER`S INTENT TO COMMENCE SUCH PROCEEDING WHICH
7 NOTICE SHALL BE SERVED NOT MORE THAN ONE HUNDRED FIFTY DAYS AND NOT LESS
8 THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE COMMENCEMENT OF SUCH ACTION.
9 NO SUCH PROCEEDING SHALL BE MAINTAINED AGAINST THE SAME TENANT MORE THAN
10 ONCE IN ANY TWENTY-FOUR MONTH PERIOD.
11 (2) PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION,
12 OWNERS SHALL NO LONGER BE REQUIRED TO GRANT AND TENANTS SHALL NO LONGER
13 BE REQUIRED TO ACCEPT RENEWAL LEASES. HOWEVER, OWNERS SHALL BE REQUIRED
14 TO GRANT AND FURNISH TO THE TENANT A VACANCY LEASE, IN ACCORDANCE WITH
15 SUBDIVISIONS A AND C OF THIS SECTION, FOR A TERM WHICH SHALL EXPIRE ON
16 THE THIRTY-FIRST DAY OF DECEMBER OF THE YEAR IN WHICH IT COMMENCED OR OF
17 THE FOLLOWING YEAR IF THE LAST GUIDELINE ADJUSTMENT WAS A TWO YEAR
18 ADJUSTMENT.
19 (3) WHERE A TENANT ENTERS INTO A VACANCY LEASE AS PROVIDED IN PARA-
20 GRAPH TWO OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
21 LEGAL REGULATED RENT, AS ADJUSTED BY ANY APPLICABLE VACANCY ALLOWANCE,
22 UNLESS A VACANCY ALLOWANCE WAS PREVIOUSLY COLLECTED FOR THE SAME TWELVE
23 MONTH GUIDELINE PERIOD, AND BY ANY APPLICABLE GUIDELINES ADJUSTMENT
24 UNLESS A ONE OR TWO YEAR ADJUSTMENT WAS PREVIOUSLY COLLECTED FOR THE
25 SAME TWELVE MONTH GUIDELINE PERIOD OR A TWO YEAR GUIDELINE ADJUSTMENT
26 WAS COLLECTED FOR THE PREVIOUS TWELVE MONTH GUIDELINE PERIOD.
27 (4) THE OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A NOTICE OF
28 RIGHTS AND DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE STATE DIVI-
29 SION OF HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL OF THE
30 HOUSING ACCOMMODATION TO A NEW TENANT.
31 (5) ANY TENANT WHOSE LEASE IN EFFECT ON DECEMBER 31, 1997 HAS EXPIRED,
32 OR WHOSE VACANCY LEASE ENTERED INTO ON OR AFTER JANUARY 1, 1998 HAS
33 PASSED ITS FIRST ANNIVERSARY, AND WHO THEREAFTER VACATES A HOUSING
34 ACCOMMODATION WITHOUT GIVING THE OWNER AT LEAST THIRTY DAYS` WRITTEN
35 NOTICE BY REGISTERED OR CERTIFIED MAIL OF HIS OR HER INTENTION TO
36 VACATE, SHALL BE LIABLE TO THE OWNER FOR THE LOSS OF RENT SUFFERED BY
37 THE OWNER, BUT NOT EXCEEDING ONE MONTH`S RENT, EXCEPT WHERE THE TENANT
38 HAS BEEN REMOVED OR VACATES PURSUANT TO THE PROVISIONS OF THIS SECTION.
39 SUCH NOTICE SHALL BE POSTMARKED ON OR BEFORE THE LAST DAY OF THE RENTAL
40 PERIOD IMMEDIATELY PRIOR TO SAID THIRTY-DAY PERIOD.
41 (6) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
42 BER 31, 1998 SHALL BE ADJUSTED EFFECTIVE JANUARY 1, 1998 AND ON THE
43 FIRST DAY OF JANUARY OF EACH YEAR THEREAFTER, OR EVERY OTHER YEAR THERE-
44 AFTER IF A TWO YEAR ADJUSTMENT WAS LAST SELECTED, BY THE RENT ADJUST-
45 MENTS ESTABLISHED BY THE RENT GUIDELINES BOARD.
46 (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
47 ARY 1, 1998 WHICH EXPIRES BETWEEN JANUARY 1, 1998 AND DECEMBER 31, 1999
48 SHALL BE ADJUSTED EFFECTIVE THE FIRST DAY FOLLOWING ITS EXPIRATION BY
49 THE APPLICABLE TRANSITIONAL ADJUSTMENTS ESTABLISHED BY THE RENT GUIDE-
50 LINES BOARD AND ON THE FIRST DAY OF JANUARY OF EACH YEAR THEREAFTER, OR
51 EVERY OTHER YEAR THEREAFTER IF A TWO YEAR ADJUSTMENT WAS LAST SELECTED,
52 BY THE RENT ADJUSTMENT ESTABLISHED BY THE RENT GUIDELINES BOARD.
53 (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED ON OR AFTER
54 JANUARY 1, 1998 SHALL IN ADDITION TO ANY ADJUSTMENT PROVIDED FOR IN
55 PARAGRAPH THREE OF THIS SUBDIVISION BE ADJUSTED ON THE FIRST DAY OF
56 JANUARY OF EACH YEAR THEREAFTER, OR EVERY OTHER YEAR THEREAFTER IF A TWO
A. 2--A 7
1 YEAR ADJUSTMENT WAS LAST SELECTED, BY THE RENT ADJUSTMENT ESTABLISHED BY
2 THE RENT GUIDELINES BOARD.
3 E. OWNERS SHALL NO LONGER BE REQUIRED TO MAKE LEASE RENEWAL OFFERS AND
4 TENANTS SHALL NO LONGER BE REQUIRED TO RESPOND TO SUCH OFFERS FOR ANY
5 LEASE WHICH WOULD COMMENCE ON OR AFTER JANUARY 1, 1998. PROVIDED,
6 HOWEVER, BETWEEN OCTOBER 1, 1997 AND DECEMBER 1, 1997 AND EVERY YEAR
7 THEREAFTER DURING THE PERIOD OF OCTOBER FIRST AND DECEMBER FIRST ANY
8 TENANT COVERED BY THE PROVISIONS OF THIS ACT MAY, AS AN ALTERNATIVE TO
9 THE ANNUAL ADJUSTMENT, ELECT A TWO YEAR RENT ADJUSTMENT WHICH WILL BE
10 APPLICABLE COMMENCING THE FOLLOWING FIRST DAY OF JANUARY FOR THE NEXT
11 TWO SUCCEEDING CALENDAR YEARS. SUCH ELECTION SHALL BE MADE ON A FORM
12 PRESCRIBED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL BY CERTIFIED
13 MAIL. FAILURE TO MAKE SUCH TIMELY ELECTION SHALL RESULT IN THE IMPOSI-
14 TION OF A ONE YEAR ADJUSTMENT.
15 S 8. Section 10-a of section 4 of chapter 576 of the laws of 1974,
16 constituting the emergency tenant protection act of nineteen seventy-
17 four, is amended by adding a new closing paragraph to read as follows:
18 NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION OR SECTION 226-B OF THE
19 REAL PROPERTY LAW TO THE CONTRARY, ANY TENANT COVERED BY THE PROVISIONS
20 OF THIS ACT SHALL BE ENTITLED TO THE BENEFITS OF THIS SECTION EVEN IF
21 THE TENANT DOES NOT HAVE A WRITTEN LEASE. THE PROVISIONS OF THIS SECTION
22 AND SECTION 226-B OF THE REAL PROPERTY LAW SHALL BE APPLIED ACCORDINGLY.
23 S 9. Section 26-504 of the administrative code of the city of New York
24 is amended by adding a new subdivision d to read as follows:
25 D. HOUSING ACCOMMODATIONS WHICH BECOME SUBJECT TO THIS LAW PURSUANT TO
26 ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW. SUCH ACCOMMODATIONS SHALL
27 CONTINUE TO BE SUBJECT TO THIS LAW NOTWITHSTANDING THE EXPIRATION OR
28 TERMINATION OF SUCH ARTICLE.
29 S 10. Subdivision b of section 26-509 of the administrative code of
30 the city of New York is amended by adding a new paragraph 10 to read as
31 follows:
32 (10) NOTWITHSTANDING ANY PROVISIONS OF PARAGRAPHS ONE AND SIX OF THIS
33 SUBDIVISION TO THE CONTRARY, EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED
34 NINETY-EIGHT, A TWO YEAR RENEWAL LEASE SHALL NOT BE A PREREQUISITE FOR A
35 TENANT TO BE ELIGIBLE FOR A RENT EXEMPTION UNDER THIS SUBDIVISION WHO
36 OTHERWISE QUALIFIES FOR SUCH RENT EXEMPTION. A RENT EXEMPTION ORDER
37 SHALL NO LONGER CONTAIN A PROVISION GIVING NOTICE THAT A TENANT MUST
38 ENTER INTO A TWO YEAR RENEWAL LEASE FOR CONTINUED ELIGIBILITY FOR A RENT
39 EXEMPTION UNDER THIS SUBDIVISION.
40 S 11. Section 26-510 of the administrative code of the city of New
41 York is amended by adding a new subdivision j to read as follows:
42 J. NOTWITHSTANDING ANY PROVISIONS OF THIS CHAPTER TO THE CONTRARY:
43 (1) EFFECTIVE ON AND AFTER JANUARY FIRST, NINETEEN HUNDRED
44 NINETY-EIGHT THE RENT ADJUSTMENTS ESTABLISHED PURSUANT TO THIS SECTION
45 SHALL BE APPLICABLE TO VACANCY LEASES WHICH COMMENCE DURING THE CALENDAR
46 YEAR FOLLOWING THE YEAR IN WHICH THE ADJUSTMENT IS ESTABLISHED AND THE
47 ADJUSTMENT FOR RENEWAL LEASES SHALL CONSTITUTE THE RENT ADJUSTMENTS
48 PROVIDED FOR IN SUBDIVISION F OF SECTION 26-511 OF THIS CHAPTER EFFEC-
49 TIVE THE FIRST DAY OF JANUARY FOLLOWING THE YEAR IN WHICH THE ADJUSTMENT
50 IS ESTABLISHED.
51 (2) NO LATER THAN OCTOBER FIRST, NINETEEN HUNDRED NINETY-SEVEN THE
52 RENT GUIDELINES BOARD SHALL ESTABLISH TRANSITIONAL GUIDELINES APPLICABLE
53 TO LEASES WHICH EXPIRE BETWEEN JANUARY FIRST, NINETEEN HUNDRED
54 NINETY-EIGHT AND DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-EIGHT.
55 NO LATER THAN OCTOBER FIRST, NINETEEN HUNDRED NINETY-EIGHT THE GUIDE-
56 LINES BOARD SHALL ESTABLISH TRANSITIONAL GUIDELINES APPLICABLE TO LEASES
A. 2--A 8
1 WHICH EXPIRE BETWEEN JANUARY FIRST, NINETEEN HUNDRED NINETY-NINE AND
2 DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE. SUCH TRANSITIONAL
3 ADJUSTMENT SHALL BE A PRO-RATA PORTION OF THE ONE OR TWO YEAR RENEWAL
4 ADJUSTMENTS.
5 S 12. Paragraph 12 of subdivision c of section 26-511 of the adminis-
6 trative code of the city of New York is amended by adding a new closing
7 paragraph to read as follows:
8 NOTWITHSTANDING ANY PROVISIONS OF THIS PARAGRAPH OR SECTION TWO
9 HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW TO THE CONTRARY ANY TENANT
10 COVERED BY THE PROVISIONS OF THIS LAW SHALL BE ENTITLED TO THE BENEFITS
11 OF THIS PARAGRAPH EVEN IF THE TENANT DOES NOT HAVE A WRITTEN LEASE. THE
12 PROVISIONS OF THIS PARAGRAPH AND SECTION TWO HUNDRED TWENTY-SIX-B OF THE
13 REAL PROPERTY LAW SHALL BE APPLIED ACCORDINGLY.
14 S 13. Section 26-511 of the administrative code of the city of New
15 York is amended by adding two new subdivisions f and g to read as
16 follows:
17 F. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS CHAPTER, ON OR
18 AFTER JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT:
19 (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
20 THE OWNER IS ENTITLED, SHALL BE REMOVED FROM ANY HOUSING ACCOMMODATION
21 WHICH IS SUBJECT TO REGULATION UNDER THIS CHAPTER BY ACTION TO EVICT OR
22 TO RECOVER POSSESSION, OR OTHERWISE, NOR SHALL ANY PERSON ATTEMPT SUCH
23 REMOVAL OR EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT THAT THE
24 TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
25 HAS EXPIRED OR OTHERWISE TERMINATED, AND NOTWITHSTANDING ANY CONTRACT,
26 LEASE AGREEMENTS, OR OBLIGATION HERETOFORE OR HEREAFTER ENTERED INTO
27 WHICH CONFLICTS WITH THE PROVISIONS OF THIS CHAPTER, EXCEPT ON ONE OR
28 MORE OF THE GROUNDS SET FORTH IN THIS CHAPTER, OR THE CODE OR REGU-
29 LATIONS PROMULGATED PURSUANT TO THIS CHAPTER, INCLUDING THE PROVISIONS
30 OF THIS CHAPTER WHICH PERMIT AN OWNER TO REFUSE TO RENEW A LEASE SUBJECT
31 TO THE FOLLOWING: NO PROCEEDING TO RECOVER POSSESSION FOR (A) THE USE OF
32 THE HOUSING ACCOMMODATION BY AN OWNER OR A MEMBER OF THE OWNER`S IMMEDI-
33 ATE FAMILY OR (B) A TENANT`S FAILURE TO OCCUPY THE HOUSING ACCOMMODATION
34 AS HIS OR HER PRIMARY RESIDENCE SHALL BE COMMENCED UNLESS THE TENANT HAS
35 BEEN NOTIFIED IN WRITING OF THE OWNER`S INTENT TO COMMENCE SUCH PROCEED-
36 ING WHICH NOTICE SHALL BE SERVED NOT MORE THAN ONE HUNDRED FIFTY DAYS
37 AND NOT LESS THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE COMMENCEMENT OF
38 SUCH ACTION. NO SUCH PROCEEDING SHALL BE MAINTAINED AGAINST THE SAME
39 TENANT MORE THAN ONCE IN ANY TWENTY-FOUR MONTH PERIOD.
40 (2) PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION,
41 OWNERS SHALL NO LONGER BE REQUIRED TO GRANT AND TENANTS SHALL NO LONGER
42 BE REQUIRED TO ACCEPT RENEWAL LEASES. HOWEVER, OWNERS SHALL BE REQUIRED
43 TO GRANT AND FURNISH TO THE TENANT A VACANCY LEASE, IN ACCORDANCE WITH
44 SUBDIVISION E OF THIS SECTION FOR A TERM WHICH SHALL EXPIRE ON DECEMBER
45 THIRTY-FIRST OF THE YEAR IN WHICH IT COMMENCES OR OF THE FOLLOWING YEAR
46 IF THE LAST GUIDELINE ADJUSTMENT WAS A TWO YEAR ADJUSTMENT.
47 (3) WHERE A TENANT ENTERS INTO A VACANCY LEASE AS PROVIDED IN PARA-
48 GRAPH TWO OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
49 LEGAL REGULATED RENT, AS ADJUSTED BY ANY APPLICABLE VACANCY ALLOWANCE,
50 UNLESS A VACANCY ALLOWANCE WAS PREVIOUSLY COLLECTED FOR THE SAME TWELVE
51 MONTH GUIDELINE PERIOD AND BY ANY APPLICABLE GUIDELINES ADJUSTMENT
52 UNLESS A ONE OR TWO YEAR ADJUSTMENT WAS PREVIOUSLY COLLECTED FOR THE
53 SAME TWELVE MONTH GUIDELINE PERIOD OR A TWO YEAR GUIDELINE ADJUSTMENT
54 WAS COLLECTED FOR THE PREVIOUS TWELVE MONTH GUIDELINE PERIOD.
55 (4) THE OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A NOTICE OF
56 RIGHTS AND DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE STATE DIVI-
A. 2--A 9
1 SION OF HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL OF THE
2 HOUSING ACCOMMODATION TO A NEW TENANT.
3 (5) ANY TENANT WHOSE LEASE IN EFFECT ON DECEMBER THIRTY-FIRST, NINE-
4 TEEN HUNDRED NINETY-SEVEN HAS EXPIRED, OR WHOSE VACANCY LEASE ENTERED
5 INTO ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT HAS PASSED
6 ITS FIRST ANNIVERSARY, AND WHO THEREAFTER VACATES A HOUSING ACCOMMO-
7 DATION WITHOUT GIVING THE OWNER AT LEAST THIRTY DAYS` WRITTEN NOTICE BY
8 REGISTERED OR CERTIFIED MAIL OF HIS OR HER INTENTION TO VACATE SHALL BE
9 LIABLE TO THE OWNER FOR THE LOSS OF RENT SUFFERED BY THE OWNER, BUT NOT
10 EXCEEDING ONE MONTH`S RENT, EXCEPT WHERE THE TENANT HAS BEEN REMOVED OR
11 VACATES PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION. SUCH NOTICE
12 SHALL BE POSTMARKED ON OR BEFORE THE LAST DAY OF THE RENTAL PERIOD IMME-
13 DIATELY PRIOR TO SUCH THIRTY-DAY PERIOD.
14 (6) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
15 BER THIRTY-FIRST, NINETEEN HUNDRED NINETY-SEVEN SHALL BE ADJUSTED EFFEC-
16 TIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT AND ON THE FIRST DAY
17 OF JANUARY OF EACH YEAR THEREAFTER, OR EVERY OTHER YEAR THEREAFTER IF A
18 TWO YEAR ADJUSTMENT WAS SELECTED, BY THE RENT ADJUSTMENTS ESTABLISHED BY
19 THE RENT GUIDELINES BOARD.
20 (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
21 ARY FIRST, NINETEEN HUNDRED NINETY-EIGHT WHICH EXPIRES BETWEEN JANUARY
22 FIRST, NINETEEN HUNDRED NINETY-EIGHT AND DECEMBER THIRTY-FIRST, NINETEEN
23 HUNDRED NINETY-NINE SHALL BE ADJUSTED EFFECTIVE THE FIRST DAY FOLLOWING
24 ITS EXPIRATION BY THE APPLICABLE TRANSITIONAL ADJUSTMENTS ESTABLISHED BY
25 THE RENT GUIDELINES BOARD AND ON THE FIRST DAY OF JANUARY EACH YEAR
26 THEREAFTER, OR EVERY OTHER YEAR THEREAFTER IF A TWO YEAR ADJUSTMENT WAS
27 LAST SELECTED, BY THE RENT ADJUSTMENT ESTABLISHED BY THE RENT GUIDELINES
28 BOARD.
29 (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED ON OR AFTER
30 JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT SHALL IN ADDITION TO ANY
31 ADJUSTMENT PROVIDED FOR IN PARAGRAPH THREE OF THIS SUBDIVISION BE
32 ADJUSTED ON THE FIRST DAY OF JANUARY EACH YEAR THEREAFTER, OR EVERY
33 OTHER YEAR THEREAFTER IF A TWO YEAR ADJUSTMENT WAS LAST SELECTED, BY THE
34 RENT ADJUSTMENT ESTABLISHED BY THE RENT GUIDELINES BOARD.
35 G. OWNERS SHALL NO LONGER BE REQUIRED TO MAKE LEASE RENEWAL OFFERS AND
36 TENANTS SHALL NO LONGER BE REQUIRED TO RESPOND TO SUCH OFFERS FOR ANY
37 LEASE WHICH WOULD COMMENCE ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED
38 NINETY-EIGHT. PROVIDED, HOWEVER, BETWEEN OCTOBER FIRST, NINETEEN
39 HUNDRED NINETY-SEVEN AND DECEMBER FIRST, NINETEEN HUNDRED NINETY-SEVEN
40 AND EVERY YEAR THEREAFTER DURING THE PERIOD OF OCTOBER FIRST AND DECEM-
41 BER FIRST ANY TENANT COVERED BY THE PROVISIONS OF THIS LAW MAY, AS AN
42 ALTERNATIVE TO THE ANNUAL ADJUSTMENT, ELECT A TWO YEAR RENT ADJUSTMENT
43 WHICH WILL BE APPLICABLE COMMENCING THE FOLLOWING FIRST DAY OF JANUARY
44 FOR THE NEXT TWO SUCCEEDING CALENDAR YEARS. SUCH ELECTION SHALL BE MADE
45 ON A FORM PRESCRIBED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL BY
46 CERTIFIED MAIL. FAILURE TO MAKE SUCH TIMELY ELECTION SHALL RESULT IN THE
47 IMPOSITION OF A ONE YEAR ADJUSTMENT.
48 S 14. Subdivision b of section 26-510 of the administrative code of
49 the city of New York is amended to read as follows:
50 b. The rent guidelines board shall establish annually guidelines for
51 rent adjustments, and in determining whether rents for housing accommo-
52 dations subject to the emergency tenant protection act of nineteen
53 seventy-four or this law shall be adjusted shall consider, among other
54 things (1) the economic condition of the residential real estate indus-
55 try in the affected area including such factors as the prevailing and
56 projected (i) real estate taxes and sewer and water rates, (ii) gross
A. 2--A 10
1 operating AND maintenance costs (including insurance rates, governmental
2 fees, cost of fuel and labor AND ADMINISTRATIVE costs), (iii) costs and
3 availability of financing (including effective rates of interest), (iv)
4 over-all supply of housing accommodations and over-all vacancy rates,
5 (V) GROSS RENTAL INCOME INCLUDING INCOME FROM OTHER THAN RESIDENTIAL
6 RENTS, (VI) ECONOMIC BENEFITS, OTHER THAN RENTAL INCOME, DERIVED FROM
7 THE OWNERSHIP AND UPGRADING OF RENTAL PROPERTY, (2) relevant data from
8 the current and projected cost of living indices for the affected area,
9 (3) such other data as may be made available to it. IN CALCULATING LABOR
10 AND ADMINISTRATIVE COSTS, THE RENT GUIDELINES BOARD SHALL CONSIDER THE
11 FEASIBILITY OF IMPUTING A VALUE TO THE ACTUAL, VERIFIABLE UNSALARIED
12 LABOR AND ADMINISTRATIVE TASKS PERFORMED BY BUILDING OWNERS OR MEMBERS
13 OF THEIR IMMEDIATE FAMILY WHO RESIDE WITH THEM. IF THE INCLUSION OF THE
14 VALUE OF SUCH LABOR AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE BY THE
15 BOARD, THEY SHALL BE INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN.
16 THE RENT GUIDELINES BOARD SHALL ANNUALLY REQUIRE A SAMPLE OF LANDLORDS
17 SUBJECT TO REGULATION UNDER THIS LAW TO MAKE AVAILABLE THEIR BOOKS AND
18 RECORDS REGARDING INCOME, EXPENDITURES, TAX BENEFITS AND FINANCING
19 ARRANGEMENTS FOR EXAMINATION BY THE BOARD AND THE BOARD SHALL UTILIZE
20 THE RESULTS OF SUCH SAMPLE AS ONE OF THE CRITERIA UPON WHICH THEIR FIND-
21 INGS ARE BASED. SUCH SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESEN-
22 TATIVE OF THE TYPES OF BUILDINGS WHICH ARE SUBJECT TO REGULATION UNDER
23 THIS LAW. ANY INFORMATION PROVIDED BY LANDLORDS PURSUANT TO THIS SUBDI-
24 VISION REGARDING AN INDIVIDUAL BUILDING OR GROUP OF BUILDINGS SHALL NOT
25 BE SUBJECT TO THE FREEDOM OF INFORMATION LAW AND THE RENT GUIDELINES
26 BOARD SHALL SAFEGUARD THE CONFIDENTIALITY OF SUCH INFORMATION PROVIDED
27 HOWEVER THAT THE BOARD SHALL MAKE AVAILABLE TO THE PUBLIC CUMULATIVE AND
28 STATISTICAL RESULTS OF THE REPRESENTATIVE SAMPLE OF BOOKS AND RECORDS
29 REQUIRED HEREIN. Not later than {July} OCTOBER first of each year, the
30 rent guidelines board shall file with the city clerk its findings for
31 the preceding calendar year, and shall accompany such findings with a
32 statement of the maximum rate or rates of rent adjustment, if any, for
33 one or more classes of accommodations subject to this law, authorized
34 for leases or other rental agreements commencing on the next succeeding
35 {October} JANUARY first or within the twelve months thereafter. Such
36 findings and statement shall be published in the City Record. THE ADDI-
37 TIONAL ALLOWANCE, IF ANY, FOR LEASES ON VACANT APARTMENTS SHALL NOT
38 EXCEED FIVE PERCENT.
39 S 15. Subdivision i of section 26-510 of the administrative code of
40 the city of New York is relettered subdivision j and a new subdivision i
41 is added to read as follows:
42 I. IN FURTHERANCE OF ITS RESPONSIBILITY TO ENFORCE THIS LAW, THE RENT
43 GUIDELINES BOARD SHALL BE EMPOWERED TO ADMINISTER OATHS, ISSUE SUBPOE-
44 NAS, CONDUCT INVESTIGATIONS, MAKE INSPECTIONS AND DESIGNATE OFFICERS TO
45 HEAR AND REPORT.
46 S 16. Section 26-514 of the administrative code of the city of New
47 York, is amended to read as follows:
48 S 26-514 Maintenance of services. In order to collect a rent adjust-
49 ment authorized pursuant to the provisions of {subdivision d of} section
50 26-510 of this chapter an owner must file with the state division of
51 housing and community renewal, {on a form which the commissioner shall
52 prescribe} AS PART OF EACH REQUIRED REGISTRATION, a written certif-
53 ication that he or she is maintaining and will continue to maintain all
54 services furnished on the date upon which the emergency tenant
55 protection act of nineteen seventy-four becomes a law or required to be
56 furnished by any state law or local law, ordinance or regulation appli-
A. 2--A 11
1 cable to the premises. In addition to any other remedy afforded by law,
2 any tenant may apply to the state division of housing and community
3 renewal, for a reduction in the rent to the level in effect prior to its
4 most recent adjustment and for an order requiring services to be main-
5 tained as provided in this section, and the commissioner shall so
6 reduce the rent if it is found that the owner has failed to maintain
7 such services. WHERE THE RENTAL BEING CHARGED FOR A HOUSING ACCOMMO-
8 DATION IS THE INITIAL LEGAL REGULATED RENT, THE COMMISSIONER SHALL
9 REDUCE THE RENT BY THE GUIDELINES RATE OF ADJUSTMENT WHICH WOULD HAVE
10 AFFECTED THE TENANT`S LEASE HAD THE LEASE BEEN A LEASE FOR A HOUSING
11 ACCOMMODATION PREVIOUSLY SUBJECT TO THIS CHAPTER. The owner shall also
12 be barred from applying for or collecting any further rent increases.
13 The restoration of such services shall result in the prospective elimi-
14 nation of such sanctions. The owner shall be supplied with a copy of the
15 application and shall be permitted to file an answer thereto. A hearing
16 may be held upon the request of either party, or the commissioner may
17 hold a hearing upon his or her own motion. The commissioner may consol-
18 idate the proceedings for two or more petitions applicable to the same
19 building or group of buildings or development. If the commissioner finds
20 that the owner has knowingly filed a false certification, it shall, in
21 addition to abating the rent, assess the owner with the reasonable costs
22 of the proceeding, including reasonable attorneys` fees, and impose a
23 penalty not in excess of two hundred fifty dollars for each false
24 certification.
25 S 17. Subdivision a of section 26-405 of the administrative code of
26 the city of New York is amended by adding a new paragraph 10 to read as
27 follows:
28 (10) (A) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS SUBDIVISION,
29 EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, MAXIMUM RENTS
30 FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER SHALL NO LONGER BE
31 ESTABLISHED PURSUANT TO PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION,
32 OR LIMITED BY PARAGRAPH FIVE OF THIS SUBDIVISION, OR ADJUSTED BY SUBPAR-
33 AGRAPH (L) OR (N) OF PARAGRAPH ONE OF SUBDIVISION C OF THIS SECTION.
34 (B) EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH, THE RENT GUIDE-
35 LINES BOARD ESTABLISHED PURSUANT TO SECTION 26-510 OF THIS TITLE SHALL
36 ESTABLISH ANNUAL GUIDELINES FOR THE CLASS OF HOUSING ACCOMMODATIONS
37 SUBJECT TO THIS CHAPTER, IN THE MANNER PROVIDED BY SUCH SECTION. THE
38 FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT TO THIS CHAPTER MAY NOT
39 BE CONSIDERED AS A FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT.
40 NOT LATER THAN OCTOBER FIRST, NINETEEN HUNDRED NINETY-SEVEN, AND NOT
41 LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER, THE RENT GUIDELINES BOARD
42 SHALL FILE WITH THE CITY CLERK ITS FINDINGS ESTABLISHED IN CONSIDERATION
43 OF THE ECONOMIC FACTORS LISTED IN SUBDIVISION B OF SECTION 26-510 OF
44 THIS TITLE, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE
45 MAXIMUM RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE OR MORE CLASS-
46 ES OF ACCOMMODATIONS SUBJECT TO THIS CHAPTER AUTHORIZED FOR THE ADJUST-
47 MENT OF THE MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE TWELVE
48 MONTH PERIOD COMMENCING JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT AND
49 FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
50 (C) EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, THE MAXI-
51 MUM RENT COLLECTIBLE FROM THE TENANT SHALL BE THE MAXIMUM RENT COLLECT-
52 IBLE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-SEVEN, INCLUDING
53 ANY RENT ADJUSTMENTS THEN COLLECTIBLE PURSUANT TO SUBPARAGRAPH (N) OF
54 PARAGRAPH ONE OF SUBDIVISION G OF THIS SECTION, AS SUCH RENT MAY BE
55 ADJUSTED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH ANNUALLY, WITH-
56 OUT AN ORDER OF THE CITY RENT AGENCY, OR AS ADJUSTED PURSUANT TO ANY
A. 2--A 12
1 OTHER PROVISION OF THIS CHAPTER, PROVIDED THAT WHERE THE LANDLORD WAS
2 NOT GRANTED OR DID NOT APPLY OR QUALIFY FOR AN INCREASE IN MAXIMUM RENT
3 PURSUANT TO PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION FOR THE YEARS
4 NINETEEN HUNDRED NINETY-FIVE, NINETEEN HUNDRED NINETY-SIX, NINETEEN
5 HUNDRED NINETY-SEVEN OR NINETEEN HUNDRED NINETY-EIGHT, A LANDLORD SHALL
6 NOT COLLECT ANY RENT INCREASE OR ADJUSTMENT OTHERWISE COLLECTIBLE UNDER
7 THIS SUBPARAGRAPH UNLESS AND UNTIL THE FIRST RENT PAYMENT DATE AFTER THE
8 LANDLORD CERTIFIES TO THE CITY RENT AGENCY THAT ALL RENT IMPAIRING
9 VIOLATIONS, AS DEFINED BY SECTION THREE HUNDRED TWO-A OF THE MULTIPLE
10 DWELLING LAW, AND AT LEAST EIGHTY PER CENTUM OF ALL OTHER VIOLATIONS OF
11 THE HOUSING MAINTENANCE CODE OR OTHER STATE OR LOCAL LAWS THAT IMPOSE
12 REQUIREMENTS ON PROPERTY AND WHICH WERE RECORDED AGAINST THE PROPERTY ON
13 JULY FIRST, NINETEEN HUNDRED NINETY-SEVEN, OR JULY FIRST OF THE YEAR
14 PRECEDING THE ADJUSTMENT, WHICHEVER IS LATER, HAVE BEEN CLEARED,
15 CORRECTED OR ABATED AND THE LANDLORD HAS RECEIVED A CERTIFICATE OF
16 ELIGIBILITY FROM THE CITY RENT AGENCY THAT THE VIOLATION CLEARING
17 REQUIREMENTS SET FORTH ABOVE HAVE BEEN MET AND FURTHER AUTHORIZING THE
18 LANDLORD TO COLLECT ANY RENT INCREASE OR ADJUSTMENT AUTHORIZED PURSUANT
19 TO THIS SUBPARAGRAPH, AND THE LANDLORD HAS SERVED SUCH CERTIFICATE UPON
20 THE TENANT RESIDING IN THE HOUSING ACCOMMODATION.
21 (D) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
22 THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
23 WITHIN THE BOARD`S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
24 ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
25 MODIFICATION.
26 (E) NOTHING CONTAINED IN THIS PARAGRAPH OR IN SUBDIVISION F OF SECTION
27 26-511 OF THIS TITLE SHALL ALTER, RESTRICT OR IMPAIR AN OWNER`S RIGHT TO
28 ESTABLISH THE INITIAL REGULATED RENT, SUBJECT TO THE PROVISIONS OF
29 SECTION 26-513 OF THIS TITLE, FOR ACCOMMODATIONS SUBJECT TO THIS CHAPTER
30 WHICH BECOME VACANT.
31 S 18. Paragraph 6 of subdivision h of section 26-405 of the adminis-
32 trative code of the city of New York is amended to read as follows:
33 (6) (A) If at least six months before the effective date of any
34 adjustment or establishment of rents pursuant to paragraph three or four
35 of subdivision a of this section, the landlord has not certified to the
36 agency having jurisdiction that (a) all rent impairing violations (as
37 defined by section three hundred two-a of the multiple dwelling law),
38 and (b) at least eighty per centum of all other violations of the hous-
39 ing maintenance code or other state or local laws that impose require-
40 ments on property that were recorded against the property one year prior
41 to such effective date have been cleared, corrected, or abated, no
42 increase pursuant to such paragraphs shall take effect until he or she
43 shall have entered into a written agreement with the city rent agency to
44 deposit all income derived from the property into an escrow or trust
45 account pursuant to subparagraph (a) of paragraph four of this subdivi-
46 sion, in addition to the procedures set forth in this paragraph and all
47 other applicable penalties and procedures under this chapter, such
48 violation shall also be subject to repair or removal by the city pursu-
49 ant to the provisions of article five of subchapter five of the housing
50 maintenance code, the landlord to be liable for the cost thereof.
51 (B) ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, TO BE
52 ENTITLED TO COLLECT ANY ANNUAL RENT ADJUSTMENTS PURSUANT TO THE
53 PROVISIONS OF PARAGRAPH TEN OF SUBDIVISION A OF THIS SECTION, A LANDLORD
54 MUST FILE WITH THE CITY RENT AGENCY, AS PART OF EACH REGISTRATION
55 REQUIRED PURSUANT TO SUBDIVISION K OF SECTION 26-409 OF THIS TITLE, A
56 WRITTEN CERTIFICATION THAT HE OR SHE IS MAINTAINING AND WILL CONTINUE TO
A. 2--A 13
1 MAINTAIN SERVICES FURNISHED OR REQUIRED TO BE FURNISHED PURSUANT TO THIS
2 CHAPTER OR REQUIRED TO BE FURNISHED BY ANY LAW, ORDINANCE OR REGULATION
3 APPLICABLE TO THE PREMISES.
4 S 19. Section 26-409 of the administrative code of the city of New
5 York is amended by adding a new subdivision k to read as follows:
6 K. EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, THE CITY
7 RENT AGENCY SHALL REQUIRE THE LANDLORD OF A BUILDING OR PROPERTY
8 CONTAINING HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER, TO EXECUTE
9 AND FILE REGISTRATION STATEMENTS WITH RESPECT TO SUCH HOUSING ACCOMMO-
10 DATIONS AS FOLLOWS:
11 (1) EACH HOUSING ACCOMMODATION SHALL BE REGISTERED BY THE LANDLORD
12 THEREOF ANNUALLY WITH THE CITY RENT AGENCY UPON FORMS AND IN SUCH MANNER
13 AS SHALL BE PRESCRIBED BY THE CITY RENT AGENCY. AT SUCH TIME, A LANDLORD
14 SHALL ALSO PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT
15 PORTION OF SUCH REGISTRATION STATEMENT AS PERTAINS TO THE TENANT`S UNIT
16 BY PERSONAL DELIVERY WITH ACKNOWLEDGEMENT OF SERVICE, CERTIFIED OR
17 REGISTERED MAIL, OR FIRST CLASS MAIL WITH OFFICIAL PROOF OF SERVICE.
18 (2) REGISTRATION PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO
19 THE FREEDOM OF INFORMATION LAW, PROVIDED THAT REGISTRATION INFORMATION
20 RELATIVE TO A TENANT OR LANDLORD SHALL BE MADE AVAILABLE TO SUCH PARTY
21 OR HIS OR HER AUTHORIZED REPRESENTATIVE.
22 (3) THE FAILURE TO FILE A PROPER AND TIMELY RENT REGISTRATION STATE-
23 MENT, PURSUANT TO THIS SUBDIVISION, SHALL, UNTIL SUCH TIME AS SUCH
24 REGISTRATION IS FILED, BAR A LANDLORD FROM APPLYING FOR OR COLLECTING
25 ANY RENT IN EXCESS OF THE MAXIMUM RENT IN EFFECT ON THE DATE OF THE LAST
26 PRECEDING REGISTRATION STATEMENT OR IF NO SUCH STATEMENTS HAVE BEEN
27 FILED, THE MAXIMUM RENT IN EFFECT ON THE DATE THAT THE HOUSING ACCOMMO-
28 DATION BECAME SUBJECT TO THE REGISTRATION REQUIREMENTS OF THIS SUBDIVI-
29 SION. THE FILING OF A LATE REGISTRATION SHALL RESULT IN THE PROSPECTIVE
30 ELIMINATION OF SUCH SANCTIONS AND PROVIDED THAT INCREASES IN THE LEGAL
31 REGULATED RENT WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY
32 REGISTRATION, THE OWNER, UPON THE SERVICE AND FILING OF A LATE REGISTRA-
33 TION, SHALL NOT BE FOUND TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME
34 PRIOR TO THE FILING OF A LATE REGISTRATION. IF SUCH LATE REGISTRATION IS
35 FILED SUBSEQUENT TO THE FILING OF AN OVERCHARGE COMPLAINT, THE OWNER
36 SHALL BE ASSESSED A LATE FILING SURCHARGE FOR EACH LATE REGISTRATION IN
37 AN AMOUNT EQUAL TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE.
38 S 20. Section 4 of chapter 274 of the laws of 1946, constituting the
39 emergency housing rent control law, is amended by adding a new subdivi-
40 sion 3-b to read as follows:
41 3-B. EFFECTIVE JANUARY 1, 1998, THE COMMISSION SHALL REQUIRE THE LAND-
42 LORD OF A BUILDING OR PROPERTY CONTAINING HOUSING ACCOMMODATIONS SUBJECT
43 TO THIS CHAPTER, TO EXECUTE AND FILE REGISTRATION STATEMENTS WITH
44 RESPECT TO SUCH HOUSING ACCOMMODATIONS AS FOLLOWS:
45 (1) EACH HOUSING ACCOMMODATION SHALL BE REGISTERED BY THE LANDLORD
46 THEREOF ANNUALLY WITH THE COMMISSION UPON FORMS AND IN SUCH MANNER AS
47 SHALL BE PRESCRIBED BY THE COMMISSION. AT SUCH TIME, A LANDLORD SHALL
48 PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT PORTION OF THE
49 REGISTRATION STATEMENT AS PERTAINS TO THE TENANT`S UNIT BY PERSONAL
50 DELIVERY WITH ACKNOWLEDGEMENT OF SERVICE, CERTIFIED OR REGISTERED MAIL,
51 OR FIRST CLASS MAIL WITH OFFICIAL PROOF OF SERVICE.
52 (2) REGISTRATION PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO
53 THE FREEDOM OF INFORMATION LAW, PROVIDED THAT REGISTRATION INFORMATION
54 RELATIVE TO A TENANT OR LANDLORD SHALL BE MADE AVAILABLE TO SUCH PARTY
55 OR HIS OR HER AUTHORIZED REPRESENTATIVE.
A. 2--A 14
1 (3) FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER WHICH ARE
2 SUBJECT TO RENT ADJUSTMENTS PURSUANT TO RENT GUIDELINES BOARD ORDERS,
3 THE FAILURE TO FILE A PROPER AND TIMELY RENT REGISTRATION STATEMENT,
4 PURSUANT TO THIS SUBDIVISION, SHALL, UNTIL SUCH TIME AS SUCH REGISTRA-
5 TION IS FILED, BAR A LANDLORD FROM APPLYING FOR OR COLLECTING ANY RENT
6 IN EXCESS OF THE MAXIMUM RENT IN EFFECT ON THE DATE OF THE LAST PRECED-
7 ING REGISTRATION STATEMENT OR IF NO SUCH STATEMENTS HAVE BEEN FILED,
8 THE MAXIMUM RENT IN EFFECT ON THE DATE THAT THE HOUSING ACCOMMODATION
9 BECAME SUBJECT TO THE REGISTRATION REQUIREMENTS OF THIS SUBDIVISION. THE
10 FILING OF A LATE REGISTRATION SHALL RESULT IN THE PROSPECTIVE ELIMI-
11 NATION OF SUCH SANCTIONS AND PROVIDED THAT INCREASES IN THE LEGAL REGU-
12 LATED RENT WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY REGISTRA-
13 TION, THE OWNER, UPON THE SERVICE AND FILING OF A LATE REGISTRATION,
14 SHALL NOT BE FOUND TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME PRIOR TO
15 THE FILING OF THE LATE REGISTRATION. IF SUCH LATE REGISTRATION IS FILED
16 SUBSEQUENT TO THE FILING OF AN OVERCHARGE COMPLAINT, THE OWNER SHALL BE
17 ASSESSED A LATE FILING SURCHARGE FOR EACH LATE REGISTRATION IN AN AMOUNT
18 EQUAL TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE.
19 S 21. Section 4 of chapter 274 of the laws of 1946, constituting the
20 emergency housing rent control law, is amended by adding two new subdi-
21 visions 9 and 10 to read as follows:
22 9. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS ACT, EFFECTIVE
23 JANUARY 1, 1998, EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, THE
24 RENT FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER LOCATED IN THE
25 COUNTIES OF WESTCHESTER AND NASSAU SHALL BE ADJUSTED AS FOLLOWS:
26 (A) THE RENT GUIDELINES BOARDS ESTABLISHED PURSUANT TO SECTION 4 OF
27 THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, SHALL
28 ESTABLISH ANNUAL GUIDELINES FOR THE CLASS OF HOUSING ACCOMMODATIONS
29 SUBJECT TO THIS CHAPTER LOCATED IN THE COUNTIES OF WESTCHESTER AND
30 NASSAU, IN THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT THE HOUS-
31 ING ACCOMMODATION IS SUBJECT TO THIS CHAPTER MAY NOT BE CONSIDERED AS A
32 FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN OCTO-
33 BER 1, 1997, AND NOT LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER, THE
34 COUNTY GUIDELINES BOARDS SHALL FILE WITH THE COMMISSION THEIR FINDINGS
35 ESTABLISHED IN CONSIDERATION OF THE ECONOMIC FACTORS LISTED IN SUBDIVI-
36 SION B OF SECTION 4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN
37 SEVENTY-FOUR, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE
38 MAXIMUM RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE OR MORE CLASS-
39 ES OF ACCOMMODATIONS SUBJECT TO THIS CHAPTER WITHIN SUCH COUNTIES
40 AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUSING ACCOM-
41 MODATION FOR THE TWELVE MONTH PERIOD COMMENCING JANUARY 1, 1998, AND FOR
42 EACH SUCCEEDING TWELVE MONTH PERIOD.
43 (B) EFFECTIVE JANUARY 1, 1998, THE MAXIMUM RENT COLLECTIBLE FROM THE
44 TENANT SHALL BE THE MAXIMUM RENT COLLECTIBLE ON DECEMBER 31, 1997, AS
45 SUCH RENT MAY BE ADJUSTED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION
46 ANNUALLY, WITHOUT AN ORDER OF THE COMMISSION, OR AS ADJUSTED PURSUANT TO
47 ANY OTHER PROVISION OF THIS CHAPTER. HOWEVER, NO SUCH INCREASE PURSUANT
48 TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE AUTHORIZED UNTIL THE EXPI-
49 RATION OF TWELVE MONTHS FROM THE EFFECTIVE DATE OF ANY RENT ADJUSTMENT
50 AUTHORIZED PURSUANT TO REGULATIONS ADOPTED FOR RENT ADJUSTMENTS TO
51 COMPENSATE FOR UNAVOIDABLE INCREASED COSTS OF OPERATIONS AS PROVIDED FOR
52 UNDER THIS ACT.
53 (C) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
54 THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
55 WITHIN A BOARD`S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
A. 2--A 15
1 ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
2 MODIFICATION.
3 (D) NOTHING CONTAINED IN THIS PARAGRAPH OR IN SUBDIVISION D OF SECTION
4 10 OF CHAPTER 576 OF THE LAWS OF 1974 SHALL ALTER, RESTRICT OR IMPAIR AN
5 OWNER`S RIGHT TO ESTABLISH THE INITIAL REGULATED RENT FOR ACCOMMODATIONS
6 SUBJECT TO THIS CHAPTER WHICH BECOME VACANT.
7 10. ON OR AFTER JANUARY 1, 1998, TO BE ENTITLED TO COLLECT ANNUAL RENT
8 ADJUSTMENTS AUTHORIZED PURSUANT TO THE PROVISIONS OF SUBDIVISION NINE OF
9 THIS SECTION, A LANDLORD MUST FILE WITH THE COMMISSION, AS PART OF EACH
10 REGISTRATION REQUIRED PURSUANT TO SUBDIVISION 3-B OF THIS SECTION, A
11 WRITTEN CERTIFICATION THAT HE OR SHE IS MAINTAINING AND WILL CONTINUE TO
12 MAINTAIN ALL SERVICES FURNISHED OR REQUIRED TO BE FURNISHED PURSUANT TO
13 THIS CHAPTER, OR ANY OTHER STATE OR LOCAL LAW, ORDINANCE OR REGULATION
14 APPLICABLE TO THE PREMISES.
15 S 22. Paragraph (b) of subdivision 1 of section 352-eee of the general
16 business law, as added by chapter 402 of the laws of 1983, is amended to
17 read as follows:
18 (b) "Non-eviction plan". A plan which may not be declared effective
19 until at least {fifteen} THIRTY-FIVE percent of those bona fide tenants
20 in occupancy of all dwelling units in the building or group of buildings
21 or development on the date the plan {is declared effective} WAS ACCEPTED
22 FOR FILING BY THE ATTORNEY GENERAL shall have executed and delivered
23 written agreements to purchase under the plan{. As to tenants who were
24 in occupancy on the date a letter was issued by the attorney general
25 accepting the plan for filing, the purchase agreement shall be executed
26 and delivered} pursuant to an offering made in good faith without fraud
27 and WITH NO discriminatory repurchase agreements or other discriminatory
28 inducements.
29 S 23. Subparagraph (i) of paragraph (c) of subdivision 2 of section
30 352-eee of the general business law, as added by chapter 402 of the laws
31 of 1983, is amended to read as follows:
32 (i) The plan may not be declared effective until at least {fifteen}
33 THIRTY-FIVE percent of those bona fide tenants in occupancy of all
34 dwelling units in the building or group of buildings or development on
35 the date the plan {is declared effective} WAS ACCEPTED FOR FILING BY THE
36 ATTORNEY GENERAL shall have executed and delivered written agreements to
37 purchase under the plan{. As to tenants who were in occupancy on the
38 date a letter was issued by the attorney general accepting the plan for
39 filing, the purchase agreement shall be executed and delivered} pursuant
40 to an offering made in good faith without fraud and WITH NO discrimina-
41 tory repurchase agreements or other discriminatory inducements.
42 S 24. Paragraph (b) of subdivision 1 of section 352-eeee of the gener-
43 al business law, as added by chapter 555 of the laws of 1982, is amended
44 to read as follows:
45 (b) "Non-eviction plan". A plan which may not be declared effective
46 until {written purchase agreements have been executed and delivered for}
47 at least {fifteen} THIRTY-FIVE percent of THE BONA FIDE TENANTS IN OCCU-
48 PANCY OF all dwelling units in the building or group of buildings or
49 development {by bona fide tenants in occupancy or bona fide purchasers
50 who represent that they intend that they or one or more members of their
51 immediate family intend to occupy the unit when it becomes vacant. As to
52 tenants who were in occupancy on the date a letter was issued by the
53 attorney general accepting the plan for filing, the purchase agreement
54 shall be executed and delivered} ON THE DATE THE OFFERING STATEMENT OR
55 PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL HAVE
56 EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE UNDER THE PLAN
A. 2--A 16
1 pursuant to an offering made in good faith without fraud and WITH NO
2 discriminatory repurchase agreements or other discriminatory induce-
3 ments.
4 S 25. Subparagraph (i) of paragraph (c) of subdivision 2 of section
5 352-eeee of the general business law, as added by chapter 555 of the
6 laws of 1982, is amended to read as follows:
7 (i) The plan may not be declared effective until {written purchase
8 agreements have been executed and delivered for} at least {fifteen}
9 THIRTY-FIVE percent of THE BONA FIDE TENANTS IN OCCUPANCY OF all dwell-
10 ing units in the building or group of buildings or development
11 {subscribed for by bona fide tenants in occupancy or bona fide purchas-
12 ers who represent that they intend that they or one or more members of
13 their immediate family occupy the dwelling unit when it becomes vacant.
14 As to tenants who were in occupancy on the date a letter was issued by
15 the attorney general accepting the plan for filing, the purchase agree-
16 ment shall be executed and delivered} ON THE DATE THE OFFERING STATEMENT
17 OR PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL HAVE
18 EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE UNDER THE PLAN
19 pursuant to an offering made IN GOOD FAITH without FRAUD AND WITH NO
20 discriminatory repurchase agreements or other discriminatory induce-
21 ments.
22 S 26. Subdivision 2 of section 352-eee of the general business law is
23 amended by adding a new paragraph (g) to read as follows:
24 (G) THE PLAN PROVIDES THAT WITHIN THIRTY DAYS AFTER THE CLOSING OF A
25 CONVERSION PURSUANT TO THIS SECTION, THE OFFEROR SHALL ESTABLISH AND
26 TRANSFER TO THE COOPERATIVE CORPORATION OR CONDOMINIUM BOARD OF MANAG-
27 ERS, A RESERVE FUND TO BE USED EXCLUSIVELY FOR MAKING CAPITAL REPAIRS,
28 REPLACEMENTS AND IMPROVEMENTS NECESSARY FOR THE HEALTH AND SAFETY OF THE
29 RESIDENTS OF THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT. SUCH
30 RESERVE FUND SHALL BE EXCLUSIVE OF ANY OTHER FUNDS REQUIRED TO BE
31 RESERVED UNDER THE PLAN OR APPLICABLE LAW OR REGULATION OF THE ATTORNEY
32 GENERAL, EXCEPT A FUND FOR CAPITAL REPAIRS, REPLACEMENTS AND IMPROVE-
33 MENTS SUBSTANTIALLY SIMILAR IN PURPOSE TO AND IN AN AMOUNT NOT LESS THAN
34 THE RESERVE FUND MANDATED BY THIS PARAGRAPH. SUCH RESERVE FUND ALSO
35 SHALL BE EXCLUSIVE OF ANY WORKING CAPITAL FUND AND SHALL NOT BE SUBJECT
36 TO REDUCTION FOR CLOSING APPORTIONMENTS.
37 AS USED IN THIS PARAGRAPH, "CAPITAL REPLACEMENT" SHALL MEAN A BUILD-
38 ING-WIDE REPLACEMENT OF A MAJOR COMPONENT OF THE HEATING, VENTILATION,
39 AIR CONDITIONING, PLUMBING, WIRING, ELEVATOR OR WINDOW SYSTEM, OR A
40 MAJOR STRUCTURAL REPLACEMENT TO THE BUILDING; PROVIDED HOWEVER, THAT
41 REPLACEMENTS MADE TO CURE CODE VIOLATIONS OF RECORD SHALL NOT BE
42 INCLUDED. "TOTAL PRICE" SHALL MEAN, WITH RESPECT TO COOPERATIVE CONVER-
43 SIONS, THE NUMBER OF ALL SHARES IN THE OFFERING MULTIPLIED BY THE LAST
44 PRICE PER SHARE WHICH WAS OFFERED TO TENANTS IN OCCUPANCY PRIOR TO THE
45 EFFECTIVE DATE OF THE PLAN REGARDLESS OF NUMBER OF SALES MADE; AND SHALL
46 MEAN, WITH RESPECT TO CONDOMINIUM CONVERSIONS, THE SUM OF THE COST OF
47 ALL UNITS IN THE OFFERING AT THE LAST PRICE WHICH WAS OFFERED TO TENANTS
48 IN OCCUPANCY PRIOR TO THE EFFECTIVE DATE OF THE PLAN REGARDLESS OF
49 NUMBER OF SALES MADE.
50 (I) SUCH FUND SHALL BE ESTABLISHED IN AN AMOUNT EQUAL TO EITHER THREE
51 PERCENT OF THE TOTAL PRICE OR, THREE PERCENT OF THE ACTUAL SALES PRICE
52 OF ALL COOPERATIVE SHARES OR CONDOMINIUM UNITS SOLD BY THE OFFEROR AT
53 THE TIME THE PLAN IS DECLARED EFFECTIVE, PROVIDED, HOWEVER, THAT IF SUCH
54 AMOUNT IS LESS THAN ONE PERCENT OF THE TOTAL PRICE, THEN THE FUND SHALL
55 BE ESTABLISHED AS A MINIMUM OF ONE PERCENT OF THE TOTAL PRICE; PLUS
56 SUPPLEMENTAL CONTRIBUTIONS TO BE MADE BY THE OFFEROR AT A RATE OF THREE
A. 2--A 17
1 PERCENT OF THE ACTUAL SALES PRICE OF COOPERATIVE SHARES OR CONDOMINIUM
2 UNITS FOR EACH UNIT OR ITS ALLOCABLE SHARES HELD BY THE OFFEROR AND SOLD
3 TO BONA FIDE PURCHASERS SUBSEQUENT TO THE EFFECTIVE DATE OF THE PLAN AND
4 WITHIN FIVE YEARS OF THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN
5 NOTWITHSTANDING THAT THE TOTAL AMOUNT CONTRIBUTED MAY EXCEED THREE
6 PERCENT OF THE TOTAL PRICE; AND PROVIDED, FURTHER, THAT IF FIVE YEARS
7 FROM THIRTY DAYS AFTER THE CLOSING OF THE CONVERSION PURSUANT TO SUCH
8 PLAN THE TOTAL CONTRIBUTIONS BY THE OFFEROR TO THE FUND ARE LESS THAN
9 THREE PERCENT OF THE TOTAL PRICE THE OFFEROR SHALL PAY THE DIFFERENCE
10 BETWEEN THE AMOUNT CONTRIBUTED AND THREE PERCENT OF THE TOTAL PRICE.
11 SUPPLEMENTAL CONTRIBUTIONS SHALL BE MADE WITHIN THIRTY DAYS OF EACH
12 SALE.
13 (II) THE CONTRIBUTIONS REQUIRED PURSUANT TO THIS SECTION MAY BE MADE
14 EARLIER OR IN AN AMOUNT GREATER THAN SO PROVIDED. AN OFFEROR MAY CLAIM
15 AND RECEIVE CREDIT AGAINST THE MANDATORY INITIAL CONTRIBUTION TO THE
16 RESERVE FUND FOR THE ACTUAL COST OF CAPITAL REPLACEMENTS WHICH HE HAS
17 BEGUN AFTER THE PLAN IS SUBMITTED FOR FILING TO THE ATTORNEY GENERAL AND
18 BEFORE THE PLAN IS DECLARED EFFECTIVE; PROVIDED, HOWEVER, THAT ANY SUCH
19 REPLACEMENTS MUST BE SET FORTH IN THE PLAN TOGETHER WITH THEIR ACTUAL OR
20 ESTIMATED COSTS AND FURTHER PROVIDED, THAT SUCH CREDIT SHALL NOT EXCEED
21 THE LESSER OF THE ACTUAL COST OF THE CAPITAL REPLACEMENTS OR ONE PERCENT
22 OF THE TOTAL PRICE.
23 (III) ANY BUILDING, CONSTRUCTION OF WHICH WAS COMPLETED WITHIN THREE
24 YEARS PRIOR TO THE CLOSING OF A CONVERSION PURSUANT TO THIS SECTION,
25 SHALL BE EXEMPT FROM THE REQUIREMENTS OF THIS PARAGRAPH.
26 (IV) THE COOPERATIVE CORPORATION OR CONDOMINIUM BOARD OF MANAGERS
27 SHALL REPORT TO SHAREHOLDERS AND UNIT OWNERS ON A SEMI-ANNUAL BASIS WITH
28 RESPECT TO ALL DEPOSITS INTO AND WITHDRAWALS FROM THE RESERVE FUND
29 MANDATED BY THIS PARAGRAPH.
30 (V) THE OFFEROR, NOT LATER THAN THE THIRTIETH DAY FOLLOWING THE
31 ACCEPTANCE OF A PLAN FOR FILING BY THE ATTORNEY GENERAL PURSUANT TO THIS
32 SECTION AND UNTIL THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN,
33 SHALL POST AND MAINTAIN IN A PROMINENT PLACE, ACCESSIBLE TO ALL TENANTS
34 IN EACH BUILDING COVERED BY THE PLAN, A LISTING OF ALL VIOLATIONS OF
35 RECORD AGAINST SUCH BUILDINGS AS DETERMINED BY THE LOCAL DEPARTMENT OF
36 BUILDINGS OR SIMILAR AGENCY OF APPROPRIATE JURISDICTION. ALL NEWLY
37 ISSUED VIOLATIONS SHALL BE POSTED WITHIN FORTY-EIGHT HOURS OF THEIR
38 ISSUANCE AND MAINTAINED AS DESCRIBED ABOVE. THE OFFEROR MAY SATISFY THE
39 REQUIREMENTS OF THIS SECTION BY DESIGNATING AN AGENT ON THE PREMISES
40 WITH WHOM SUCH LISTING SHALL BE MADE AVAILABLE FOR INSPECTION BY THE
41 TENANTS.
42 (VI) WHERE, PURSUANT TO LAW OR REGULATION OF THE ATTORNEY GENERAL, AN
43 OFFEROR IS REQUIRED TO FILE A REPORT WITH THE ATTORNEY GENERAL DESCRIB-
44 ING THE CONDITION OF THE PHYSICAL ASPECTS OF THE PREMISES TO BE
45 CONVERTED AND THE SURROUNDING NEIGHBORHOOD A COPY OF SUCH REPORT SHALL
46 BE SUBMITTED SIMULTANEOUSLY TO THE LOCAL COMMISSIONER OF BUILDINGS OR
47 SIMILAR AGENCY OF APPROPRIATE JURISDICTION.
48 (VII) ANY PROVISION PURPORTING TO WAIVE THE PROVISIONS OF THIS PARA-
49 GRAPH IN ANY CONTRACT TO PURCHASE OR AGREEMENT BETWEEN AN OFFEROR AND
50 THE COOPERATIVE CORPORATION OR THE CONDOMINIUM BOARD OF MANAGERS PURSU-
51 ANT TO A CONVERSION PLAN SHALL BE VOID AS AGAINST PUBLIC POLICY.
52 (VIII) ENFORCEMENT. (1) EXCEPT AS OTHERWISE PROVIDED BELOW, ANY PERSON
53 WHO VIOLATES OR ASSISTS IN THE VIOLATION OF THIS PARAGRAPH SHALL BE
54 SUBJECT TO A CIVIL PENALTY OF ONE HUNDRED DOLLARS PER DAY PER UNIT FOR
55 EACH DAY THAT A BUILDING IS NOT IN COMPLIANCE WITH THE PROVISIONS OF
A. 2--A 18
1 SUCH PARAGRAPH, PROVIDED, HOWEVER, THAT SUCH CIVIL PENALTY SHALL NOT
2 EXCEED ONE THOUSAND DOLLARS PER UNIT.
3 (2) ANY PERSON WHO KNOWINGLY VIOLATES OR ASSISTS IN THE VIOLATION OF
4 SUCH PARAGRAPH SHALL ALSO BE SUBJECT TO A CIVIL PENALTY OF ONE THOUSAND
5 DOLLARS PER DAY FOR EACH DAY THAT THE RESERVE FUND IS NOT ESTABLISHED;
6 PROVIDED, HOWEVER, THAT SUCH CIVIL PENALTY SHALL NOT EXCEED THE AMOUNT
7 REQUIRED TO BE RESERVED PURSUANT TO THIS PARAGRAPH.
8 (3) ANY ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDICTION
9 THAT MAY BE APPROPRIATE OR NECESSARY FOR THE ENFORCEMENT OF THE
10 PROVISIONS OF THIS PARAGRAPH MAY BE BROUGHT IN THE NAME OF THE CITY,
11 TOWN OR VILLAGE WHEREIN SUCH BUILDING OR BUILDINGS ARE LOCATED, INCLUD-
12 ING ACTIONS TO SECURE PERMANENT INJUNCTIONS ENJOINING ANY ACTS OR PRAC-
13 TICES WHICH CONSTITUTE A VIOLATION OF ANY PROVISION OF THIS PARAGRAPH,
14 MANDATING COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH OR FOR SUCH
15 OTHER RELIEF AS MAY BE APPROPRIATE. IN ANY SUCH ACTION OR PROCEEDING THE
16 CITY, TOWN OR VILLAGE MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION,
17 OR TO A JUDGE OR JUSTICE THEREOF, FOR A TEMPORARY RESTRAINING ORDER OR
18 PRELIMINARY INJUNCTION ENJOINING AND RESTRAINING ALL PERSONS FROM
19 VIOLATING ANY PROVISION OF THIS PARAGRAPH MANDATING COMPLIANCE WITH THE
20 PROVISIONS OF THIS PARAGRAPH OR FOR SUCH OTHER RELIEF AS MAY BE APPRO-
21 PRIATE UNTIL THE HEARING AND DETERMINATION OF SUCH ACTION OR PROCEEDING
22 AND THE ENTRY OF FINAL JUDGMENT OR ORDER THEREIN. THE COURT, OR JUDGE OR
23 JUSTICE THEREOF, TO WHOM SUCH APPLICATION IS MADE, IS HEREBY AUTHORIZED
24 FORTHWITH TO MAKE ANY OR ALL OF THE ORDERS ABOVE SPECIFIED, AS MAY BE
25 REQUIRED IN SUCH APPLICATION, WITH OR WITHOUT NOTICE, AND TO MAKE SUCH
26 OTHER OR FURTHER ORDERS OR DIRECTIONS AS MAY BE NECESSARY TO RENDER THE
27 SAME EFFECTUAL. NO UNDERTAKING SHALL BE REQUIRED AS A CONDITION OF THE
28 GRANTING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
29 (IX) NOTHING CONTAINED IN THIS PARAGRAPH SHALL IMPAIR ANY RIGHTS,
30 REMEDIES OR CAUSES OF ACTION ACCRUED OR ACCRUING TO PURCHASERS OF COOP-
31 ERATIVE SHARES OR CONDOMINIUM UNITS.
32 S 27. Paragraph (e) of subdivision 2 of section 352-eee of the gener-
33 al business law, as added by chapter 402 of the laws of 1983, is amended
34 to read as follows:
35 (e) The attorney general finds that an excessive number of {long-term}
36 vacancies did not exist on the date THAT IS ONE HUNDRED TEN DAYS AFTER
37 THE DATE that the offering statement or prospectus was first submitted
38 to the department of law. {"Long-term vacancies"} "VACANCIES" shall mean
39 dwelling units not leased or occupied by bona fide tenants {for more
40 than five months prior to the date of such submission to the department
41 of law} ON SUCH ONE HUNDRED TENTH DAY. "Excessive" shall mean a vacancy
42 rate in excess of {the greater of (i) ten percent and (ii) a percentage
43 that is double the normal average vacancy rate for} FIVE PERCENT OF THE
44 TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings or
45 development {for two years prior to the January preceding the date the
46 offering statement or prospectus was first submitted to the department
47 of law} OFFERED UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
48 BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS, "EXCESSIVE"
49 SHALL MEAN MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
50 THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
51 MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE EXISTENCE OF AN
52 EXCESSIVE NUMBER OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
53 CAUSE SHOWN.
54 S 28. Paragraph (e) of subdivision 2 of section 352-eeee of the gener-
55 al business law, as added by chapter 555 of the laws of 1982, is amended
56 to read as follows:
A. 2--A 19
1 (e) The attorney general finds that an excessive number of {long-term}
2 vacancies did not exist on the date THAT IS ONE HUNDRED TEN DAYS AFTER
3 THE DATE that the offering statement or prospectus was first submitted
4 to the department of law. {"Long-term vacancies"} "VACANCIES" shall mean
5 dwelling units not leased or occupied by bona fide tenants {for more
6 than five months prior to the date of such submission to the department
7 of law} ON SUCH ONE HUNDRED TENTH DAY. "Excessive" shall mean a vacancy
8 rate in excess of {the greater of (i) ten percent and (ii) a percentage
9 that is double the normal average vacancy rate for} FIVE PERCENT OF THE
10 TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings or
11 development {for two years prior to the January preceding the date the
12 offering statement or prospectus was first submitted to the department
13 of law} OFFERED UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
14 BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS, "EXCESSIVE"
15 SHALL MEAN MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
16 THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
17 MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE EXISTENCE OF AN
18 EXCESSIVE NUMBER OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
19 CAUSE SHOWN.
20 S 29. Paragraph (c) of subdivision 1, subparagraph (v) of paragraph
21 (c) and paragraph (d) of subdivision 2 of section 352-eee of the general
22 business law are REPEALED, paragraph (e) of subdivision 2 is relettered
23 paragraph (d) and paragraph (b), the opening paragraph of paragraph (c)
24 and paragraph (f) of subdivision 2, as added by chapter 402 of the laws
25 of 1983, are amended to read as follows:
26 (b) The plan provides {either that it is an eviction plan or} that it
27 is a non-eviction plan.
28 The plan provides{, if it is a non-eviction plan,} as follows:
29 {(f)} (E) The attorney general finds that, following the submission of
30 the offering statement or prospectus to the department of law, each
31 tenant in the building or group of buildings or development was provided
32 with a written notice stating that such offering statement or prospectus
33 has been submitted to the department of law for filing. Such notice
34 shall be accompanied by a copy of the offering statement or prospectus
35 and a statement that the statements submitted pursuant to subparagraph
36 {(vii)} (VI) of paragraph (c) {or subparagraph (vii) of paragraph (d)}
37 of this subdivision{, whichever is applicable,} will be available for
38 inspection and copying at the office of the department of law where the
39 submission was made and at the office of the offeror or a selling agent
40 of the offeror. Such notice shall also be accompanied by a statement
41 that tenants or their representatives may physically inspect the prem-
42 ises at any time subsequent to the submission of the plan to the depart-
43 ment of law, during normal business hours, upon written request made by
44 them to the offeror, provided such representatives are registered archi-
45 tects or professional engineers licensed to practice in the state of New
46 York. Such notice shall be sent to each tenant in occupancy on the date
47 the plan is first submitted to the department of law and to the clerk of
48 the municipality wherein such building or group of buildings or develop-
49 ment is located.
50 S 30. Paragraph (c) of subdivision 1, subparagraph (v) of paragraph
51 (c) and paragraph (d) of subdivision 2 of section 352-eeee of the gener-
52 al business law are REPEALED, paragraphs (d), (e), (f) and (g) of subdi-
53 vision 1 are relettered paragraphs (c), (d), (e) and (f), subparagraphs
54 (vi) and (vii) of paragraph (c) of subdivision 2 are relettered subpara-
55 graphs (v) and (vi), paragraph (e) of subdivision 2 is relettered para-
56 graph (d) and paragraph (b), the opening paragraph of paragraph (c) and
A. 2--A 20
1 paragraph (f) of subdivision 2, as added by chapter 555 of the laws of
2 1982, are amended to read as follows:
3 (b) The plan provides {either that it is an eviction plan or} that it
4 is a non-eviction plan.
5 The plan provides{, if it is a non-eviction plan,} as follows:
6 {(f)} (E) The attorney general finds that, following the submission of
7 the offering statement or prospectus to the department of law, each
8 tenant in the building or group of buildings or development was provided
9 with a written notice stating that such offering statement or prospectus
10 has been submitted to the department of law for filing. Such notice
11 shall be accompanied by a copy of the offering statement or prospectus
12 and a statement that the statements submitted pursuant to subparagraph
13 {(vii)} (VI) of paragraph (c) {or subparagraph (vii) of paragraph (d)}
14 of this subdivision{, whichever is applicable,} will be available for
15 inspection and copying at the office of the department of law where the
16 submission was made and at the office of the offeror or a selling agent
17 of the offeror. Such notice shall also be accompanied by a statement
18 that tenants or their representatives may physically inspect the prem-
19 ises at any time subsequent to the submission of the plan to the depart-
20 ment of law, during normal business hours, upon written request made by
21 them to the offeror, provided such representatives are registered archi-
22 tects or professional engineers licensed to practice in the state of New
23 York. Such notice shall be sent to each tenant in occupancy on the date
24 the plan is first submitted to the department of law.
25 S 31. Subparagraph (g) of paragraph 1 of subdivision g of section
26 26-405 of the administrative code of the city of New York, as amended by
27 chapter 749 of the laws of 1990, is amended to read as follows:
28 (g) (I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT AUTHORIZED PURSU-
29 ANT TO ITEM (II) OF THIS SUBPARAGRAPH SHALL CEASE WHEN THE OWNER HAS
30 RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT;
31 (II) There has been since July first, nineteen hundred seventy, a
32 major capital improvement {required for the operation, preservation or
33 maintenance of the structure. An adjustment under this subparagraph (g)
34 shall be in an amount sufficient to amortize the cost of the improve-
35 ments pursuant to this subparagraph (g) over a seven-year period}
36 PROVIDED, THAT THE COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED
37 DEPRECIABLE UNDER THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE
38 REQUIRED FOR THE OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUC-
39 TURE. THE INCREASE PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE
40 COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPA-
41 RATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY
42 OTHER ADJUSTMENT TO THE MAXIMUM RENT. THE SURCHARGE ALLOCABLE TO EACH
43 APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT
44 DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING,
45 AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APARTMENT, PROVIDED
46 THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT IN ANY ONE YEAR MAY NOT
47 EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY
48 THE OWNER FOR SUCH APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS
49 RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED FORWARD AND
50 COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDI-
51 TIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE
52 EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT
53 LIMITATION DID NOT APPLY; or
54 S 32. Subparagraph (k) of paragraph 1 of subdivision g of section
55 26-405 of the administrative code of the city of New York, as amended by
56 chapter 749 of the laws of 1990, is amended to read as follows:
A. 2--A 21
1 (k) The landlord has incurred, since January first, nineteen hundred
2 seventy, in connection with and in addition to a concurrent major capi-
3 tal improvement pursuant to subparagraph (g) of this paragraph, other
4 expenditures to improve, restore or preserve the quality of the struc-
5 ture. An adjustment under this subparagraph shall be granted only if
6 such improvements represent an expenditure equal to at least ten per
7 centum of the total operating and maintenance expenses for the preceding
8 year. An adjustment under this subparagraph shall be in addition to any
9 adjustment granted for the concurrent major capital improvement and
10 shall be {in an amount sufficient to amortize the cost of the improve-
11 ments pursuant to this subparagraph over a seven-year period} IMPLE-
12 MENTED IN THE SAME MANNER AS SUCH MAJOR CAPITAL IMPROVEMENT AS A FURTHER
13 SURCHARGE TO THE MAXIMUM RENT.
14 S 33. Paragraph 6 of subdivision c of section 26-511 of the adminis-
15 trative code of the city of New York, as amended by chapter 749 of the
16 laws of 1990, is amended to read as follows:
17 (6) provides criteria whereby the commissioner may act upon applica-
18 tions by owners for increases in excess of the level of fair rent
19 increase established under this law provided, however, that such crite-
20 ria shall provide {(a)} as to hardship applications, for a finding that
21 the level of fair rent increase is not sufficient to enable the owner to
22 maintain approximately the same average annual net income (which shall
23 be computed without regard to debt service, financing costs or manage-
24 ment fees) for the three year period ending on or within six months of
25 the date of an application pursuant to such criteria as compared with
26 annual net income, which prevailed on the average over the period nine-
27 teen hundred sixty-eight through nineteen hundred seventy, or for the
28 first three years of operation if the building was completed since nine-
29 teen hundred sixty-eight or for the first three fiscal years after a
30 transfer of title to a new owner provided the new owner can establish to
31 the satisfaction of the commissioner that he or she acquired title to
32 the building as a result of a bona fide sale of the entire building and
33 that the new owner is unable to obtain requisite records for the fiscal
34 years nineteen hundred sixty-eight through nineteen hundred seventy
35 despite diligent efforts to obtain same from predecessors in title and
36 further provided that the new owner can provide financial data covering
37 a minimum of six years under his or her continuous and uninterrupted
38 operation of the building to meet the three year to three year compar-
39 ative test periods herein provided{; and (b) as to completed building-
40 wide major capital improvements, for a finding that such improvements
41 are deemed depreciable under the Internal Revenue Code and that the cost
42 is to be amortized over a seven-year period, based upon cash purchase
43 price exclusive of interest or service charges}. Notwithstanding
44 anything to the contrary contained herein, no HARDSHIP increase granted
45 pursuant to this paragraph shall, when added to the annual gross rents,
46 as determined by the commissioner, exceed the sum of, (i) the annual
47 operating expenses, (ii) an allowance for management services as deter-
48 mined by the commissioner, (iii) actual annual mortgage debt service
49 (interest and amortization) on its indebtedness to a lending institu-
50 tion, an insurance company, a retirement fund or welfare fund which is
51 operated under the supervision of the banking or insurance laws of the
52 state of New York or the United States, and (iv) eight and one-half
53 percent of that portion of the fair market value of the property which
54 exceeds the unpaid principal amount of the mortgage indebtedness
55 referred to in subparagraph (iii) of this paragraph. Fair market value
56 for the purposes of this paragraph shall be six times the annual gross
A. 2--A 22
1 rent. The collection of any increase in the stabilized rent for any
2 apartment pursuant to this paragraph shall not exceed six percent in any
3 year from the effective date of the order granting the increase over the
4 rent set forth in the schedule of gross rents, with collectability of
5 any dollar excess above said sum to be spread forward in similar incre-
6 ments and added to the stabilized rent as established or set in future
7 years;
8 S 34. Subdivision c of section 26-511 of the administrative code of
9 the city of New York is amended by adding two new paragraphs 6-b and 6-c
10 to read as follows:
11 (6-B) PROVIDES CRITERIA WHEREBY THE COMMISSIONER MAY ACT UPON APPLICA-
12 TION BY OWNERS FOR INCREASES IN EXCESS OF THE LEVEL OF FAIR RENT
13 INCREASE ESTABLISHED UNDER THIS LAW PROVIDED, HOWEVER, THAT SUCH CRITE-
14 RIA SHALL PROVIDE AS TO COMPLETED BUILDING-WIDE MAJOR CAPITAL IMPROVE-
15 MENTS, FOR A FINDING THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
16 THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
17 OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE
18 PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY
19 SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
20 AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL ADJUSTMENT
21 OF THE LEVEL OF FAIR RENT PROVIDED FOR UNDER SUBDIVISION B OF SECTION
22 26-510 OF THIS LAW. THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE
23 AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR,
24 DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY
25 THE NUMBER OF ROOMS IN SUCH APARTMENT, PROVIDED THAT THE SURCHARGE ALLO-
26 CABLE TO ANY APARTMENT, IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL
27 TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH
28 APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE
29 SAID SIX PERCENT SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE YEARS
30 AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY
31 ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD
32 HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY.
33 (6-C) COLLECTION OF SURCHARGES IN EXCESS OF THE LEVEL OF FAIR RENT
34 AUTHORIZED PURSUANT TO PARAGRAPH SIX-B OF THIS SUBDIVISION SHALL CEASE
35 WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT.
36 S 35. Paragraph 3 of subdivision d of section 6 of section 4 of chap-
37 ter 576 of the laws of 1974, constituting the emergency tenant
38 protection act of nineteen seventy-four, as amended by chapter 749 of
39 the laws of 1990, is amended to read as follows:
40 (3) (I) COLLECTION OF SURCHARGES IN ADDITION TO THE LEGAL REGULATED
41 RENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH SHALL
42 CEASE WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL
43 IMPROVEMENT;
44 (II) there has been since January first, nineteen hundred seventy-four
45 a major capital improvement {required for the operation, preservation or
46 maintenance of the structure. An adjustment under this paragraph shall
47 be in an amount sufficient to amortize the cost of the improvements
48 pursuant to this paragraph over a seven-year period} PROVIDED, THAT THE
49 COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
50 THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
51 OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE
52 PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY
53 SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
54 AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL RENT
55 ADJUSTMENT AUTHORIZED BY THE RENT GUIDELINES BOARD UNDER THIS ACT. THE
56 SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE
A. 2--A 23
1 COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF
2 ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN
3 SUCH APARTMENT, PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT
4 IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE
5 MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET FORTH IN
6 THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE
7 CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT
8 TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE
9 TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMEN-
10 TIONED SIX PERCENT LIMITATION DID NOT APPLY, or
11 S 36. The second undesignated subparagraph of paragraph (a) of subdi-
12 vision 4 of section 4 of chapter 274 of the laws of 1946, constituting
13 the emergency rent control law, as amended by chapter 21 of the laws of
14 1962, is amended to read as follows:
15 No application for adjustment of maximum rent based upon a sales price
16 valuation shall be filed by the landlord under this subparagraph prior
17 to six months from the date of such sale of the property. In addition,
18 no adjustment ordered by the commission based upon such sales price
19 valuation shall be effective prior to one year from the date of such
20 sale. Where, however, the assessed valuation of the land exceeds four
21 times the assessed valuation of the buildings thereon, the commission
22 may determine a valuation of the property equal to five times the equal-
23 ized assessed valuation of the buildings, for the purposes of this
24 subparagraph. The commission may make a determination that the valu-
25 ation of the property is an amount different from such equalized
26 assessed valuation where there is a request for a reduction in such
27 assessed valuation currently pending; or where there has been a
28 reduction in the assessed valuation for the year next preceding the
29 effective date of the current assessed valuation in effect at the time
30 of the filing of the application. Net annual return shall be the amount
31 by which the earned income exceeds the operating expenses of the proper-
32 ty, excluding mortgage interest and amortization, and excluding allow-
33 ances for obsolescence and reserves, but including an allowance for
34 depreciation of two per centum of the value of the buildings exclusive
35 of the land, or the amount shown for depreciation of the buildings in
36 the latest required federal income tax return, whichever is lower;
37 provided, however, (1) that no allowance for depreciation of the build-
38 ings shall be included where the buildings have been fully depreciated
39 for federal income tax purposes or on the books of the owner; or (2) the
40 landlord who owns no more than four rental units within the state has
41 not been fully compensated by increases in rental income sufficient to
42 offset unavoidable increases in property taxes, fuel, utilities, insur-
43 ance and repairs and maintenance, excluding mortgage interest and amor-
44 tization, and excluding allowances for depreciation, obsolescence and
45 reserves, which have occurred since the federal date determining the
46 maximum rent or the date the property was acquired by the present owner,
47 whichever is later; or (3) the landlord operates a hotel or rooming
48 house or owns a cooperative apartment and has not been fully compensated
49 by increases in rental income from the controlled housing accommodations
50 sufficient to offset unavoidable increases in property taxes and other
51 costs as are allocable to such controlled housing accommodations,
52 including costs of operation of such hotel or rooming house, but exclud-
53 ing mortgage interest and amortization, and excluding allowances for
54 depreciation, obsolescence and reserves, which have occurred since the
55 federal date determining the maximum rent or the date the landlord
56 commenced the operation of the property, whichever is later; or (4) the
A. 2--A 24
1 landlord and tenant voluntarily enter into a valid written lease in good
2 faith with respect to any housing accommodation, which lease provides
3 for an increase in the maximum rent not in excess of fifteen per centum
4 and for a term of not less than two years, except that where such lease
5 provides for an increase in excess of fifteen per centum, the increase
6 shall be automatically reduced to fifteen per centum; or (5) the land-
7 lord and tenant by mutual voluntary written agreement, subject to the
8 approval of the commission, agree to a substantial increase or decrease
9 in dwelling space or a change in the services, furniture, furnishings or
10 equipment provided in the housing accommodations; or (6) there has
11 been, since March {first, nineteen hundred fifty} 1, 1950, an increase
12 in the rental value of the housing accommodations as a result of a
13 substantial rehabilitation of the building or housing accommodation
14 therein which materially adds to the value of the property or appre-
15 ciably prolongs its life, excluding ordinary repairs, maintenance and
16 replacements; or (7) (I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT
17 AUTHORIZED PURSUANT TO ITEM (II) OF THIS CLAUSE SHALL CEASE WHEN THE
18 OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT; (II)
19 there has been since March {first, nineteen hundred fifty} 1, 1950, a
20 major capital improvement {required for the operation, preservation or
21 maintenance of the structure} PROVIDED, THAT THE COMMISSIONER FINDS THAT
22 SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER THE INTERNAL REVENUE CODE
23 AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE OPERATION, PRESERVATION OR
24 MAINTENANCE OF THE STRUCTURE. THE INCREASE PERMITTED FOR SUCH CAPITAL
25 IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM
26 RENT. IT SHALL BE SEPARATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT
27 BE COMPOUNDED BY ANY OTHER ADJUSTMENT TO THE MAXIMUM RENT. THE SURCHARGE
28 ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF THE
29 IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN
30 THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APART-
31 MENT, PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT IN ANY ONE
32 YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT
33 COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET FORTH IN THE SCHEDULE
34 OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED
35 FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO
36 EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE TOTAL
37 SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX
38 PERCENT LIMITATION DID NOT APPLY; or (8) there has been since March
39 {first, nineteen hundred fifty} 1, 1950, in structures containing more
40 than four housing accommodations, other improvements made with the
41 express consent of the tenants in occupancy of at least seventy-five per
42 centum of the housing accommodations, provided, however, that no adjust-
43 ment granted hereunder shall exceed fifteen per centum unless the
44 tenants have agreed to a higher percentage of increase, as herein
45 provided; or (9) there has been, since March {first, nineteen hundred
46 fifty} 1, 1950, a subletting without written consent from the landlord
47 or an increase in the number of adult occupants who are not members of
48 the immediate family of the tenant, and the landlord has not been
49 compensated therefor by adjustment of the maximum rent by lease or order
50 of the commission or pursuant to the federal act; or (10) the presence
51 of unique or peculiar circumstances materially affecting the maximum
52 rent has resulted in a maximum rent which is substantially lower than
53 the rents generally prevailing in the same area for substantially simi-
54 lar housing accommodations.
A. 2--A 25
1 S 37. Subparagraph (e) of paragraph 4 of subdivision g of section
2 26-405 of the administrative code of the city of New York, as amended by
3 chapter 253 of the laws of 1993, is amended to read as follows:
4 (e) The landlord and tenant by mutual voluntary written agreement
5 agree to a substantial increase or decrease in dwelling space or a
6 change in the services, furniture, furnishings or equipment provided in
7 the housing accommodations. An adjustment under this subparagraph shall
8 be equal to {one-fortieth} ONE-SEVENTY-SECOND of the total cost incurred
9 by the landlord in providing such modification or increase in dwelling
10 space, services, furniture, furnishings or equipment, including the cost
11 of installation, but excluding finance charges, provided further {than
12 an owner} THAT A LANDLORD who is entitled to a rent increase pursuant to
13 this subparagraph shall not be entitled to a further rent increase based
14 upon the installation of similar equipment, or new furniture or
15 furnishings within the useful life of such new equipment, or new furni-
16 ture or furnishings. THE NEXT ANNUAL REGISTRATION STATEMENT FILED FOR
17 ANY HOUSING ACCOMMODATION SUBJECT TO SUCH RENT INCREASE SHALL CONTAIN A
18 DETAILED BREAKDOWN OF SUCH INCREASE. The owner shall give written notice
19 to the city rent agency AND TO THE TENANT of any such adjustment pursu-
20 ant to this subparagraph{.}; or
21 S 38. Paragraph 13 of subdivision c of section 26-511 of the adminis-
22 trative code of the city of New York, as added by chapter 253 of the
23 laws of 1993, is amended to read as follows:
24 (13) provides that an owner is entitled to a rent increase where there
25 has been a substantial modification or increase of dwelling space or an
26 increase in the services, or installation of new equipment or improve-
27 ments or new furniture or furnishings provided in or to a tenant`s hous-
28 ing accommodation, on written tenant consent to the rent increase. In
29 the case of a vacant housing accommodation, tenant consent shall not be
30 required. The permanent increase in the legal regulated rent for the
31 affected housing accommodation shall be {one-fortieth} ONE-SEVENTY-SEC-
32 OND of the total cost incurred by the landlord in providing such modifi-
33 cation or increase in dwelling space, services, furniture, furnishings
34 or equipment, including the cost of installation, but excluding finance
35 charges. Provided further that an owner who is entitled to a rent
36 increase pursuant to this paragraph shall not be entitled to a further
37 rent increase based upon the installation of similar equipment, or new
38 furniture or furnishings within the useful life of such new equipment,
39 or new furniture or furnishings. THE NEXT ANNUAL REGISTRATION STATEMENT
40 FILED FOR ANY HOUSING ACCOMMODATION SUBJECT TO SUCH RENT INCREASE SHALL
41 CONTAIN A DETAILED BREAKDOWN OF SUCH INCREASE.
42 S 39. Paragraph 1 of subdivision d of section 6 of section 4 of chap-
43 ter 576 of the laws of 1974, constituting the emergency tenant
44 protection act of nineteen seventy-four, as added by chapter 253 of the
45 laws of 1993, is amended to read as follows:
46 (1) there has been a substantial modification or increase of dwelling
47 space or an increase in the services, or installation of new equipment
48 or improvements or new furniture or furnishings, provided in or to a
49 tenant`s housing accommodation, on written tenant consent to the rent
50 increase. In the case of a vacant housing accommodation, tenant consent
51 shall not be required. The permanent increase in the legal regulated
52 rent for the affected housing accommodation shall be {one-fortieth}
53 ONE-SEVENTY-SECOND of the total cost incurred by the landlord in provid-
54 ing such modification or increase in dwelling space, services, furni-
55 ture, furnishings or equipment, including the cost of installation, but
56 excluding finance charges. Provided further {than} THAT an owner who is
A. 2--A 26
1 entitled to a rent increase pursuant to this paragraph shall not be
2 entitled to a further rent increase based upon the installation of simi-
3 lar equipment, or new furniture or furnishings within the useful life of
4 such new equipment, or new furniture or furnishings. THE NEXT ANNUAL
5 REGISTRATION STATEMENT FILED FOR ANY HOUSING ACCOMMODATION SUBJECT TO
6 SUCH RENT INCREASE SHALL CONTAIN A DETAILED BREAKDOWN OF SUCH INCREASE.
7 S 40. Clause 5 of paragraph (a) of subdivision 4 of section 4 of chap-
8 ter 274 of the laws of 1946, constituting the emergency housing rent
9 control law, as amended by chapter 253 of the laws of 1993, is amended
10 to read as follows:
11 (5) the landlord and tenant by mutual voluntary written agreement
12 agree to a substantial increase or decrease in dwelling space or a
13 change in the services, furniture, furnishings or equipment provided in
14 the housing accommodations; provided that an owner shall be entitled to
15 a rent increase where there has been a substantial modification or
16 increase of dwelling space or an increase in the services, or installa-
17 tion of new equipment or improvements or new furniture or furnishings
18 provided in or to a tenant`s housing accommodation. The permanent
19 increase in the maximum rent for the affected housing accommodation
20 shall be {one-fortieth} ONE-SEVENTY-SECOND of the total cost incurred by
21 the landlord in providing such modification or increase in dwelling
22 space, services, furniture, furnishings or equipment, including the cost
23 of installation, but excluding finance charges provided further that an
24 owner who is entitled to a rent increase pursuant to this clause shall
25 not be entitled to a further rent increase based upon the installation
26 of similar equipment, or new furniture or furnishings within the useful
27 life of such new equipment, or new furniture or furnishings. The owner
28 shall give written notice to the commission AND TO THE TENANT of any
29 such adjustment pursuant to this clause, SUCH NOTICE SHALL CONTAIN A
30 DETAILED BREAKDOWN OF SUCH INCREASE; or
31 S 41. Section 17 of chapter 576 of the laws of 1974, amending the
32 emergency housing rent control law relating to the control of and
33 stabilization of rent in certain cases, as amended by chapter 253 of the
34 laws of 1993, is amended to read as follows:
35 S 17. Effective date. This act shall take effect immediately {and
36 shall remain in full force and effect until and including the fifteenth
37 day of June 1997}; except that sections two and three shall take effect
38 with respect to any city having a population of one million or more and
39 section one shall take effect with respect to any other city, or any
40 town or village whenever the local legislative body of a city, town or
41 village determines the existence of a public emergency pursuant to
42 section 3 of the emergency tenant protection act of nineteen seventy-
43 four, as enacted by section four of this act{, and provided that the
44 housing accommodations subject on the effective date of this act to
45 stabilization pursuant to the New York city rent stabilization law of
46 nineteen hundred sixty-nine shall remain subject to such law upon the
47 expiration of this act}.
48 S 42. Section 2 of chapter 329 of the laws of 1963, amending the emer-
49 gency housing rent control law relating to the recontrol of rents in
50 certain cases, as amended by chapter 253 of the laws of 1993, is amended
51 to read as follows:
52 S 2. This act shall take effect immediately {and the provisions of
53 subdivision 6 of section 12 of the emergency housing rent control law,
54 as added by this act, shall remain in full force and effect until and
55 including June 15, 1997}.
A. 2--A 27
1 S 43. Subdivision 2 of section 1 of chapter 274 of the laws of 1946,
2 constituting the emergency housing rent control law, is REPEALED.
3 S 44. Section 10 of chapter 555 of the laws of 1982, amending the
4 general business law and the administrative code of the city of New York
5 relating to conversion of rental residential property to cooperative or
6 condominium ownership in the city of New York, as amended by chapter 253
7 of the laws of 1993, is amended to read as follows:
8 S 10. This act shall take effect immediately; provided, that the
9 provisions of {sections one, two and nine of this act shall remain in
10 full force and effect only until and including June 15, 1997; provided
11 further that the provisions of} section three of this act shall remain
12 in full force and effect only so long as the public emergency requiring
13 the regulation and control of residential rents and evictions continues
14 as provided in subdivision 3 of section 1 of the local emergency housing
15 rent control act; provided further that the provisions of sections four,
16 five, six and seven of this act shall expire in accordance with the
17 provisions of section 26-520 of the administrative code of the city of
18 New York as such section of the administrative code is, from time to
19 time, amended; provided further that the provisions of section 26-511 of
20 the administrative code of the city of New York, as amended by this act,
21 which the New York City Department of Housing Preservation and Develop-
22 ment must find are contained in the code of the real estate industry
23 stabilization association of such city in order to approve it, shall be
24 deemed contained therein as of the effective date of this act; and
25 provided further that any plan accepted for filing by the department of
26 law on or before the effective date of this act shall continue to be
27 governed by the provisions of section 352-eeee of the general business
28 law as they had existed immediately prior to the effective date of this
29 act.
30 S 45. Section 4 of chapter 402 of the laws of 1983, amending the
31 general business law relating to conversion of rental residential prop-
32 erty to cooperative or condominium ownership in certain municipalities
33 in the counties of Nassau, Westchester and Rockland, as amended by chap-
34 ter 253 of the laws of 1993, is amended to read as follows:
35 S 4. This act shall take effect immediately; provided, that {the
36 provisions of sections one and three of this act shall remain in full
37 force and effect only until and including June 15, 1997; and provided
38 further that} any plan accepted for filing by the department of law on
39 or before the effective date of this act shall continue to be governed
40 by the provisions of section 352-eee of the general business law as they
41 had existed immediately prior to the effective date of this act.
42 S 46. This act shall take effect immediately; provided that the amend-
43 ments to sections 352-eee and 352-eeee of the general business law made
44 by sections twenty-two, twenty-three, twenty-four, twenty-five, twenty-
45 seven and twenty-eight of this act shall apply only to offering state-
46 ments or prospectuses to which section 352-eee or 352-eeee of the gener-
47 al business law is applicable which are first submitted to the attorney
48 general for filing after the date this act takes effect; provided
49 further that the amendments to sections 352-eee and 352-eeee of the
50 general business law made by sections twenty-six, twenty-nine and thirty
51 of this act shall apply to every offering statements or prospectuses to
52 which section 352-eee or 352-eeee of the general business law is appli-
53 cable which is accepted for filing by the attorney general after the
54 date this act takes effect; and provided further that the provisions of
55 sections thirty-one through forty of this act shall apply only to rent
56 increases for improvements, modification or increases in dwelling space,
A. 2--A 28
1 services, furniture, furnishings or equipment which are commenced or
2 first provided after the date this act takes effect.