New York Assembly Bill A01496

New York 2025-2026 Regular Session

• Introduced: 1/10/25
• Refer: 1/10/25
• Refer: 1/7/26

Caption

Relates to waivers of rent adjustments attributable to major capital improvements.

Summary

This bill amends New York City’s administrative code to change how property owners may waive rent increases tied to major capital improvements (MCIs) in rent-stabilized buildings. Under current law, owners receiving certain tax abatement benefits for qualifying improvements can agree to waive only a portion of the rent adjustment attributable to those improvements. This bill replaces that partial waiver with a full waiver of the rent adjustment, meaning owners would have to forgo the entire annual rent increase associated with the MCI in exchange for the tax abatement benefits. The waiver would be required as a condition of claiming the tax abatement, and the owner would have to file a declaration with the Department of Housing Preservation and Development and the state Division of Housing and Community Renewal. The waiver would bind the owner and future successors or assigns. The bill preserves existing exceptions for substantial rehabilitation of vacant buildings and projects substantially assisted by public subsidies, and it applies only to improvements begun after the bill’s effective date.

Impact

The bill would amend section 11-243 of the New York City Administrative Code, tightening the relationship between tax abatements and rent increases for major capital improvements in rent-stabilized housing. If enacted, it would reduce or eliminate the ability of owners to pass MCI-related costs through to tenants when they receive the specified tax benefits, thereby limiting rent increases for affected tenants and changing the financial tradeoff for landlords undertaking qualifying renovations. It would also impose additional filing and compliance obligations on owners and continue to involve both city and state housing agencies in administration and enforcement.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text alone, the measure appears tenant-protective and aimed at reducing rent burdens associated with building improvements. The overall framing suggests a policy preference for ensuring that public tax benefits do not coincide with full rent pass-throughs to tenants.

Contention

The likely point of contention is the bill’s effect on landlords and building owners, who may argue that requiring a full waiver of MCI-related rent adjustments makes it harder to finance repairs and improvements, especially in older rent-stabilized buildings. Tenant advocates would likely support the measure because it limits rent increases tied to improvements that are subsidized through tax abatements. Another possible issue is whether the bill could discourage capital improvements or shift costs in ways that affect building maintenance, though no formal objections are included in the provided materials.