NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3977
SPONSOR: Glick TITLE OF BILL:
An act to amend the administrative code of the city of New York, in
relation to renewal of a lease under the stabilization code
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to clarify the original intent of the demo-
lition provision of the Rent Stabilization Law, and to prohibit building
owners from using demolition applications to evict rent stabilized,
tenants without actually demolishing their buildings.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends subparagraph (a) of paragraph 9 of subdivi-
sion c of section 26-511 of the administrative code of the city of New
York, constituting a provision of the rent stabilization law of nineteen
hundred sixty-nine. The amendments define building demolition, establish
new procedures at the division of housing and community renewal for
demolition applications, and grant rent stabilized tenants expanded
options in cases where demolition applications are approved.
Section 2 provides for the effective date.
JUSTIFICATION:
It is in the State's economic and social interest that an adequate
supply of affordable housing be available. But as development pressures
continue to drive the competitive real estate market.in New York City
and surrounding counties, there has been an increasing loss of afforda-
ble housing units. Eager to increase profits on rent stabilized housing
units in particular, building owners have utilized a variety of means to
turn these units into more profitable luxury housing or commercial
units. The result has been that each year, thousands of rent-stabilized
units are permanently removed from the housing stock. This trend contin-
ues as owners seek new ways to manipulate the letter and spirit of the
law in order to more expeditiously eliminate the rent stabilized units
in a building.
This bill addresses one method by which owners are increasingly attempt-
ing in order to deregulate rent-stabilized apartments. While the Legis-
lature intended that the demolition provision of the Rent Stabilization
law permit owners to demolish old, dilapidated and dangerous housing in
order to replace it with new, safe housing, some owners are attempting
to redefine demolition as simple renovations where entire floors are
left intact, outer walls are untouched, or major structural elements
remain in place. Such uses of the term "demolition" are inconsistent
with both its common meaning and the meaning that was intended by the
Legislature. This bill will clarify the definition of "demolition",
making it consistent with its common and intended definitions.
Accordingly, it will be clear that owners shall not be permitted to
eliminate rent-stabilized housing units by manipulating the demolition
provision in this manner.
FISCAL IMPLICATIONS:
To be determined.
LEGISLATIVE HISTORY:
2021-2022: S.490/A.8278
2019-2020: S.1920/A.725
2017-2018: S.3193/A.5901
2015-2016: S.2856/A.3602
2013-2014: S.3176/A.3904
2011-2012: S.906/A.3596
2009-2010: S.3854-13/A.2558-13
2008: S.7233
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any action or
proceeding pending in any court and to any application, complaint, or
proceeding pending before an administrative agency on such effective
date, as well as to any action or proceeding commenced thereafter;
provided, however that the amendments to subparagraph (a) of paragraph 9
of subdivision c of section 26-511 of the rent stabilization law of
nineteen hundred sixty-nine made by section one of this act shall expire
of such law as provided under section 26-520 of the administrative code
of the city of New York.
STATE OF NEW YORK
________________________________________________________________________
3977
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. GLICK, L. ROSENTHAL, DINOWITZ, COOK, COLTON --
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 renewal of a lease under the stabilization code
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (a) of paragraph 9 of subdivision c of section
2 26-511 of the administrative code of the city of New York is amended to
3 read as follows:
4 (a) (1) where [he or she] the owner has established to the satisfac-
5 tion of the division of housing and community renewal, after a hearing
6 at which all parties may present evidence that the subject building is
7 in a substandard or seriously deteriorated condition, and that the owner
8 intends in good faith to demolish the building and [has obtained a
9 permit therefor from the department of buildings] submits proof prior to
10 filing the application with the division of housing and community
11 renewal that plans and if possible, the necessary permits, for the
12 undertaking have been approved by and obtained from the department of
13 buildings. Such application shall be filed at least ninety days prior
14 to the expiration of the lease term; for the purpose of this subpara-
15 graph, "demolish" means the complete razing of the entire building,
16 including all exterior walls, in order to construct a new building with
17 the same or greater number of rental housing units;
18 (2) The order granting the owner's demolition application shall
19 provide that the owner must, at the tenant's option, either: (i) relo-
20 cate the tenant to an equivalent or superior rent stabilized housing
21 accommodation in a closely proximate area, or if a new residential
22 building is being constructed on the site provide the tenant with suit-
23 able interim housing at no additional cost until a unit is available in
24 the new building; provide that the amount of rent charged for the unit
25 shall be at the same or lower legal regulated rent; and provide the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01066-01-3
A. 3977 2
1 tenant, in addition to reasonable moving expenses, payment of a five
2 thousand dollar stipend, provided the tenant vacates on or before the
3 vacate date required by the final order; or (ii) provide relocation of
4 the tenant to a suitable housing accommodation at a rent in excess of
5 that for the subject housing accommodation; provide the tenant, in addi-
6 tion to reasonable moving expenses, a stipend equal to the difference of
7 the rent charged at the housing accommodation being vacated and the rent
8 charged for the housing accommodation to which the tenant is relocating,
9 multiplied by seventy-two months, provided the tenant vacates on or
10 before the vacate date required by the final order; or (iii) pay the
11 tenant a stipend which shall be the difference between the tenant's
12 current rent and an amount to be calculated using the demolition stipend
13 chart, created by the division of housing and community renewal, multi-
14 plied by seventy-two months; or
15 § 2. This act shall take effect immediately and shall apply to any
16 tenant in possession on or after such effective date and to any action
17 or proceeding pending in any court and to any application, complaint, or
18 proceeding pending before an administrative agency on such effective
19 date, as well as to any action or proceeding commenced thereafter;
20 provided, however that the amendments to subparagraph (a) of paragraph 9
21 of subdivision c of section 26-511 of chapter 4 of title 26 of the
22 administrative code of the city of New York made by section one of this
23 act shall expire on the same date as such law expires and shall not
24 affect the expiration of such law as provided under section 26-520 of
25 such law.
