New York State Bill A3963


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Summary of Bill A3963

New York State Bill A03963


Summary of Bill A03963

BILL NO   A03963

SPONSOR   Ferrara

COSPNSR   Reynolds

MLTSPNSR  Alfano, Balboni, Guerin, Nesbitt, Wirth

Add SS26-416 & 26-520.1, NYC Ad Cd
Establishes a minimum base rent of $450 a month for rent controlled buildings
with 20 units or less.

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Actions on Bill A03963

BILL NO   A03963

02/10/97  referred to housing

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Votes on Bill A03963

Vote record not found for bill A3963

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Memo on Bill A03963

BILL NUMBER: A3963

PURPOSE OR GENERAL IDEA OF BILL:

To  provide  a minimum base rent for smaller rent regulated buildings in
the City of New York.

SUMMARY OF SPECIFIC PROVISIONS:

This bill adds new Sections 26-416 and 26-520.1  to  the  Administrative
Code  of  the  City  of  New York to provide that as of October 1, 1995,
housing accommodations located in rent controlled  and  rent  stabilized
multiple dwellings containing 20 units or less shall have a minimum base
rent  of  $450  amonth  excluding gas and utility charges.   Those units
which rent for less than $450 per month could receive no more than a 15%
increase in rent per year until the minimum base rent is attained.   The
bill  also  provides that any tenants eligible for a senior citizen rent
increase exemption order would be exempt from the bill`s provisions.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:

This bill adds new Sections 26-416 and 26-520.1  to  the  Administrative
Code of the City of New York.

JUSTIFICATION:

In  1992,  the  New York City Rent Guidelines Board conducted a study to
determine  the  costs  associated  with  rent  stabilized  housing   and
discovered  that  an  average  monthly  rent of $382 was required for an
owner to cover the  costs  of  operating  and  maintaining  such  rental
housing.  The city`s 1991 Housing and Vacancy Report also indicates that
the median contract rent for all rent controlled apartments in New  York
City  was  just  $320  for  the  first quarter of 1991, while the median
contract rent for all rent stabilized apartments was $480. Median rents,
though, in older pre-1947 stabilized units were just $453 per month. The
aforementioned Rent Guidelines Board study also indicated that operating
and maintenance costs account from between 67% - 75% of  rental  income;
thus, one can safely conclude that many of the rent regulated apartments
in  New  York  City  are either not generating enough income to pay such
costs or are barely producing enough income to meet expenses. This  will
help   owners  of  smaller  multiple  dwellings  to  recover  the  costs
associated with operating, maintaining, and financing rental housing.

PRIOR LEGISLATIVE HISTORY:

1996: A.3571 held for consideration in Housing

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

This act shall take effect immediately; provided that the amendments  to
the  city  rent  and  rehabilitation law made by section one of this act
shall remain in full force  and  effect  only  so  long  as  the  public
emergency  requiring the regulation and control of residential rents and
evictions continues, as provided in subdivision 3 of section  l  of  the
local  emergency  housing  rent  control  act;  and  provided  that  the
amendments to the rent stabilization law of nineteen hundred  sixty-nine
made  by  section  two of this act shall expire on the same date as such
law expires and shall not affect the expiration of such law as  provided
under section 26-520 of such law.

Bill A3963
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