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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