New York S 864: Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent

Bill Text

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S00864 Summary:

BILL NOS00864 

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SAME ASNo Same As

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SPONSORBAILEY

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COSPNSRMAYER, RAMOS, SEPULVEDA

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MLTSPNSR

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Amd §6, Emerg Ten Prot Act of 1974

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Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent.

Go to top S00864 Actions:

BILL NOS00864 

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01/08/2025REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

01/07/2026REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Go to topS00864 Committee&nbspVotes:

Go to topS00864 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00864 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 864

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. BAILEY, MAYER, RAMOS, SEPULVEDA -- read twice and
 ordered printed, and when printed to be committed to the Committee on
 Housing, Construction and Community Development

 AN ACT to amend the emergency tenant protection act of nineteen seven-
 ty-four, in relation to capping the amount of collectible rent
 increases due to major capital improvements at six percent of the
 legal regulated rent

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Paragraph 3 of subdivision d of section 6 of section 4 of
 2 chapter 576 of the laws of 1974, constituting the emergency tenant
 3 protection act of nineteen seventy-four, as amended by section 26 of
 4 part Q of chapter 39 of the laws of 2019, is amended to read as follows:
 5 (3) (a) there has been since January first, nineteen hundred seventy-
 6 four a major capital improvement essential for the preservation, energy
 7 efficiency, functionality, or infrastructure of the entire building,
 8 improvement of the structure including heating, windows, plumbing and
 9 roofing, but shall not be for operation costs or unnecessary cosmetic
 10 improvements. An adjustment under this paragraph shall be in an amount
 11 sufficient to amortize the cost of the improvements pursuant to this
 12 paragraph over a twelve-year period for a building with thirty-five or
 13 fewer housing accommodations, or a twelve and one-half period for a
 14 building with more than thirty-five housing accommodations and shall be
 15 removed from the legal regulated rent thirty years from the date the
 16 increase became effective inclusive of any increases granted by the
 17 applicable rent guidelines board, for any determination issued by the
 18 division of housing and community renewal after the effective date of
 19 [the] chapter thirty-nine of the laws of two thousand nineteen [that
 20 amended this paragraph]; provided that the collection of any increase in
 21 the legal regulated rent for any housing accommodation pursuant to this

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02114-01-5

 S. 864 2

 1 subparagraph shall not exceed six percent in any year from the effective
 2 date of the order granting the increase over the legal regulated rent
 3 registered pursuant to section twelve-a of this act, with collectibility
 4 of any dollar excess above said sum to be spread forward in similar
 5 increments and added to the legal regulated rent as established or set
 6 in future years. In no event shall more than one six percent increase in
 7 the legal regulated rent pursuant to this subparagraph be collected in
 8 the same year.
 9 (b) Temporary major capital improvement increases shall be collectable
 10 prospectively on the first day of the first month beginning sixty days
 11 from the date of mailing notice of approval to the tenant. Such notice
 12 shall disclose the total monthly increase in rent and the first month in
 13 which the tenant would be required to pay the temporary increase. An
 14 approval for a temporary major capital improvement increase shall not
 15 include retroactive payments. The collection of any increase shall not
 16 exceed two percent in any year from the effective date of the order
 17 granting the increase over the rent set forth in the schedule of gross
 18 rents, with collectability of any dollar excess above said sum to be
 19 spread fo