Requires the rent guidelines board to take other sources of income received by landlords from commercial rents and unregulated residential units into account when establishing annual calculations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3262
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the administrative code of the city of New York, in
relation to requiring the rent guidelines board to take other sources of
income received by landlords from commercial rents and unregulated resi-
dential units into account when establishing annual calculations
PURPOSE:
This bill requires the rent guidelines board to consider landlord
profits in addition to landlord costs when determining annual guidelines
for rent adjustments.
SUMMARY OF SPECIFIC PROVISIONS:
Section one renumbers paragraph 3 of subdivision b of section 26-510 of
the administrative code of the city of New York to paragraph 4; and adds
a new paragraph 3.
Section two sets forth the effective date.
JUSTIFICATION:
The New York City Rent Guidelines Board (RGB) is mandated to establish
rent adjustments for the nearly one million dwelling units subject to
the Rent Stabilization Law in New York City. To determine the adjust-
ment, the RGB holds a series of public meetings to hear testimony from
owners and tenants, but under the current law the Board is instructed
only to consider factors that contribute to landlord costs, not their
overall profit. To determine landlord costs, the ROB depends on state-
ments from property owners such as the Real Property Income and Expense
(RPIE) statements, but an audit of RPIE statements collected from rent-
stabilized buildings revealed that on average, operation and maintenance
costs were exaggerated by 8%.
This bill would put tenants and landlords on equal footing before the
law by requiring the RGB to also consider all sources of income, includ-
ing rents from unregulated residential tenants and commercial units.
Middle and low income citizens who depend on rent-stabilized apartments
are being priced out of New York City as the RGB raises rents each year
based on exaggerated cost reports from landlords. The RGB needs a more
balanced picture of what is actually happening in the rental market in
order to make fair determinations about rent adjustments.
LEGISLATIVE HISTORY:
2019-20: A.1392 - Referred to Housing
2017-18: A.3219 - Referred to Housing
2015-16: A.594 - Referred to Housing; S.3037 - Referred to Housing,
Construction and Community Development
2013-14: A.745 - Referred to Housing; S.1805 - Referred to Housing,
Construction and Community Development
2011-12: A.1464 - Referred to Housing; S.3119 - Referred to Housing,
Construction and Community Development
2009-10: A.5450 - Referred to Housing
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
This bill shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
3262
2021-2022 Regular Sessions
IN ASSEMBLY
January 22, 2021
___________
Introduced by M. of A. L. ROSENTHAL, GOTTFRIED, DINOWITZ -- Multi-Spon-
sored by -- M. of A. COLTON, GLICK -- 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 requiring the rent guidelines board to take other sources
of income received by landlords from commercial rents and unregulated
residential units into account when establishing annual calculations
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 b of section 26-510 of the
2 administrative code of the city of New York is renumbered paragraph 4
3 and a new paragraph 3 is added to read as follows:
4 (3) all other sources of income from buildings containing housing
5 accommodations subject to this law including, but not limited to,
6 commercial rents and rent from unregulated residential units, and the
7 extent to which such changes offset changes in cost,
8 § 2. This act shall take effect immediately, provided, however, that
9 the amendments to section 26-510 of chapter 4 of title 26 of the admin-
10 istrative code of the city of New York made by section one of this act
11 shall expire on the same date as such law expires and shall not affect
12 the expiration of such law as provided under section 26-520 of such law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00857-01-1
