New York State Bill A3966

New York State Bill A03966

Summary of Bill A03966

BILL NO   A03966

SPONSOR   Ferrara

COSPNSR   Reynolds

MLTSPNSR  Alfano, Anderson, Balboni, Guerin, Nesbitt, Wirth

Amd SS26-403 & 26-504, NYC Ad Cd; amd S5, Emerg Ten Prot Act; amd S1, Loc Emerg
Hous Ren Cont Act

Provides that housing accommodations becoming vacant after the effective date
of this act and containing twenty units or less shall be exempt from the city
rent and rehabilitation law and the rent stabilization law of 1969.

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Actions on Bill A03966

BILL NO   A03966

02/10/97  referred to housing

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Votes on Bill A03966

Vote record not found for bill A3966

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Memo on Bill A03966

BILL NUMBER: A3966

PURPOSE OR GENERAL IDEA OF BILL:

To  exempt  units located in smaller rent stabilized and rent controlled
dwellings which contain 20 or less units from rent regulation  upon  the
vacancy of the unit.

SUMMARY OF SPECIFIC PROVISIONS:

This bill amends Section 26-403(e) (2) of the Administrative Code of the
City  of  New York (NYC rent control), Section 26-504(a)(1) of such code
(NYC rent stabilization), Section 5(a) of Section 4 of  Chapter  576  of
the  Laws of 1974 (Emergency Tenant Protection Act), and Section 1(5) of
Chapter 21 of the Laws of 1962 (statewide rent control) to  exempt  from
rent regulations upon vacancy those housing units contained in buildings
having  20  or  fewer  units.  The exemption, though, would not apply to
those units that  the  Commissioner  of  the  Division  of  Housing  and
Community  Renewal determines became vacant because the landlord, acting
with intent to cause the tenant  to  vacate,  engaged  in  a  course  of
conduct that interfered with or disturbed the tenant with respect to his
occupancy  of  the housing unit.  The bill also provides that the number
of housing accommodations in a building would be deemed to be the number
listed in the most recent annual registration summary on file with DHCR.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:

The bill amends Section 26-403(e)(2) of the Administrative Code  of  the
City  of  New  York,  Section 26-504(a)(1) of such code, Section 5(a) of
Section 4 of Chapter 576 of the  Laws  of  1974,  and  Section  1(5)  of
Chapter 21 of the Laws of 1962.

JUSTIFICATION:

Smaller  multiple  dwellings, particularly those buildings with 20 units
or less, represent the most vulnerable component of the  rental  housing
stock  and  are  the  most  susceptible  to  the  inequities of the rent
regulation system. In many of these buildings operating and  maintenance
costs  outpace  rental  income. Recently, in the City of New York, these
smaller dwellings have been hit with large increases in water and  sewer
rates.  According  to  data compiled by the city`s Department of Housing
Preservation and Development, more than 70% of all buildings and 85%  of
all  housing  units  acquired by the city through in rem tax foreclosure
contain between 3 and 50 units. Many of these units were rent regulated,
meaning that governmental policies have kept building incomes below what
is needed to ensure survival of these housing units. This bill will help
save  smaller  dwellings  from  abandonment  and  tax   foreclosure   by
deregulating  upon  vacancy  rent regulated buildings having 20 units or
less.

PRIOR LEGISLATIVE HISTORY:

1996: A.3573 held for consideration in Housing

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

The 30th day after it becomes law.