New York A 1773: Places limits on rent adjustments for major capital improvements

Bill Text

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A01773 Summary:

BILL NOA01773 

&nbsp

SAME ASNo Same As

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SPONSORRosenthal

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COSPNSR

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MLTSPNSR

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Amd §§26-405 & 26-511, NYC Ad Cd

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Places limits on rent adjustments for major capital improvements.

Go to top A01773 Actions:

BILL NOA01773 

&nbsp

01/14/2025referred to housing

01/07/2026referred to housing

Go to topA01773 Committee&nbspVotes:

Go to topA01773 Floor&nbspVotes:

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

Go to topA01773 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1773

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 14, 2025
 ___________

 Introduced by M. of A. ROSENTHAL -- read once and referred to the
 Committee on Housing

 AN ACT to amend the administrative code of the city of New York, in
 relation to rent adjustments for major capital improvements

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

 1 Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section
 2 26-405 of the administrative code of the city of New York, as amended by
 3 section 27 of part Q of chapter 39 of the laws of 2019, is amended to
 4 read as follows:
 5 (g) There has been since July first, nineteen hundred seventy, a major
 6 capital improvement essential for the preservation energy efficiency,
 7 functionality, or infrastructure of the entire building, improvement of
 8 the structure including heating, windows, plumbing and roofing but shall
 9 not be for operational costs or unnecessary cosmetic improvements. The
 10 temporary increase based upon a major capital improvement under this
 11 subparagraph for any order of the commissioner issued after the effec-
 12 tive date of the chapter of the laws of two thousand nineteen that
 13 amended this subparagraph shall be in an amount sufficient to amortize
 14 the cost of the improvements pursuant to this subparagraph [(g)] over a
 15 twelve-year period for buildings with thirty-five or fewer units or a
 16 twelve and one-half year period for buildings with more than thirty-five
 17 units, and shall be removed from the legal regulated rent thirty years
 18 from the date the increase became effective inclusive of any increases
 19 granted by the applicable rent guidelines board. Temporary major capital
 20 improvement increases shall be collectible prospectively on the first
 21 day of the first month beginning sixty days from the date of mailing
 22 notice of approval to the tenant. Such notice shall disclose the total
 23 monthly increase in rent and the first month in which the tenant would
 24 be required to pay the temporary increase. An approval for a temporary
 25 major capital improvement increase shall not include retroactive

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04635-01-5

 A. 1773 2

 1 payments. The collection of any increase shall not exceed two percent in
 2 any year from the effective date of the order granting the increase over
 3 the rent set forth in the schedule of gross rents, with collectability
 4 of any dollar excess above said sum to be spread forward in similar
 5 increments and added to the rent as established or set in future years.
 6 Upon vacancy, the landlord may add any remaining balance of the tempo-
 7 rary major capital improvement increase to the legal regulated rent. A
 8 rent adjustment for a major capital improvement may only be granted if
 9 the owner or agent of the subject building first applies for and
 10 receives benefits pursuant to section 11-243 of this code for the build-
 11 ing for which they are seeking a major capital improvement for,
 12 provided, however, an owner or agent of the subject building that is
 13 denied benefits pursuant to section 11-243 of this code for reasons
 14 unrelated to an untimely or improperly completed application shall still
 15 be eligible to receive a rent adjustment for a major capital improve-
 16 ment. Notwithstanding any other provision of the law, for any renewal
 17 lease commencing on or after June 14, 2019, the collection of any rent
 18 increases due to any major capital improvements approved on or after
 19 June 16, 2012 and before June 16, 2019 shall not exceed two percent