Provides for an alternative hardship allowance for landlords in New York city rent controlled apartments which allows a hardship rent increase where a building's annual net income is less than 8.5 percent of the equalized assessed value.
Summary
This bill would create an alternative hardship allowance for certain owners of rent-regulated housing in New York City. It raises the benchmark for qualifying hardship relief from a 6 percent net annual return to 8.5 percent, and it allows eligible owners to seek rent increases above applicable guideline limits when current guideline increases are not enough to produce that return. The bill applies both to the city’s rent control framework and to the rent stabilization law, and it defines net annual return and valuation for purposes of the hardship calculation.
The alternative hardship process would be available only to owners of buildings acquired by the same owner or a related entity controlled by the same principals within three years before the application date. Applications would be made to the Division of Housing and Community Renewal, and any increase would be based on the commissioner’s finding that the existing guideline increases are insufficient to maintain the required return. The bill also specifies how property value and depreciation are calculated, including use of assessed valuation adjusted to full valuation and limits on depreciation allowances.
Impact
The bill would amend the New York City Administrative Code provisions governing rent control and rent stabilization, as well as the Emergency Tenant Protection Act of 1974. Its practical effect would be to expand the circumstances under which certain landlords can obtain rent increases on regulated apartments by lowering the financial threshold for hardship relief and creating a separate pathway for recently acquired buildings. It would affect landlords, tenants in rent-controlled and rent-stabilized units, and the Division of Housing and Community Renewal, which would administer the applications.
Sentiment
No committee transcript or recorded vote is provided, so there is no formal legislative debate or vote history to gauge support or opposition. Based on the bill’s subject matter and sponsor framing, the measure appears designed to address landlord financial hardship and may be viewed favorably by property owners seeking relief. At the same time, because it would make it easier to raise rents in regulated housing, it would likely draw concern from tenant advocates and housing affordability supporters.
Contention
The main point of contention is the policy balance between landlord financial viability and tenant rent protections. Supporters are likely to argue that an 8.5 percent return standard better reflects current property costs and prevents underperforming buildings from deteriorating, especially for recently acquired properties. Opponents are likely to argue that the bill weakens rent regulation by broadening hardship-based rent increases and could lead to higher rents for tenants in stabilized and controlled apartments. The special rule for buildings acquired within three years of application may also be controversial because it could be seen as favoring speculative or recent purchasers.
Authorizes owners of certain condominium units to apply to raise rents in excess of certain guidelines as an alternative to making a hardship application, where such raise is necessary to exceed annual operating expenses by at least 5%.
Requires an annual inspection and audit process which shall review five percent of individual apartment improvement notifications for rent stabilized apartments outside of the city of New York; requires additional audits where violations are found.
Requires an annual inspection and audit process which shall review five percent of individual apartment improvement notifications for rent stabilized apartments outside of the city of New York; requires additional audits where violations are found.
Increases personal needs allowance to $50 for recipients of Medicaid and Supplemental Security Income who are veterans or spouses of veterans and provides for annual cost-of-living increase in allowance.
Implements transfer assessments for any class one or class two parcel in any special assessing unit wholly contained within a city which has had a transfer of title within the fiscal year where the market value of such parcel, as determined by the New York city department of finance, is greater than the assessed value of such parcel.
Requires landlords of non-owner occupied, one-six family dwellings in the city of New York to provide fire extinguishers in all rented apartments; authorizes the promulgation of standards related thereto.
Increases personal needs allowance amounts for individuals who are deemed eligible; requires that payments be subject to an annual adjustment reflecting the latest consumer price index, all items-U.S. city average.
Establishes a tax rebate program for rent-stabilized housing that targets buildings with individually occupied rent-stabilized apartments where the property tax burden significantly exceeds rental income.
Increases tax credits for donations to food pantries made by farmers by increasing the allowable percentage of the fair market value of such donations and increasing the maximum amount of such credit.