•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A08898 Summary:

BILL NOA08898
 
SAME ASSAME AS S08046-A
 
SPONSORBurroughs
 
COSPNSR
 
MLTSPNSR
 
Amd §§10-b & 12, Emerg Ten Prot Act of 1974; amd §8-a, Emerg Hous Rent Cont L
 
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.
Go to top    

A08898 Actions:

BILL NOA08898
 
06/12/2025referred to housing
Go to top

A08898 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8898
 
SPONSOR: Burroughs
  TITLE OF BILL: An act to amend the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to audits of individual apartment improvements in rent regulated units   PURPOSE OR GENERAL IDEA OF BILL: To strengthen tenant protections in rent-regulated housing by mandating annual audits and inspections of individual apartment improvements (IAIs) outside of New York City, ensuring that costs claimed by land- lords are legitimate and substantiated.   SUMMARY OF PROVISIONS: Section 1 amends subdivision (c) of section 10-b of the Emergency Tenant Protection Act to require the Division of Housing and Community Renewal (DHCR) to implement an annual audit process reviewing 5% of IAIs in regulated units outside New York City. This includes physical inspections and document verification. Overcharges found to be unsub- stantiated shall be deemed willful. Section 2 amends the Emergency Housing Rent Control Law by renumbering an existing subdivision and adding two new subdivisions: Subdivision 3 mirrors Section 1 by requiring annual audits of 5% of IAIs for rent- controlled units outside New York City. Subdivision 4 requires addi- tional audits for all housing units owned by a landlord found to have willfully overcharged tenants. Section 3 amends section 12 of the Emergency Tenant Protection Act to require further audits of all rent-regulated units under the ownership of any landlord found to have willfully overcharged a tenant, in addi- tion to existing penalties. Section 4 provides for the bill to take effect immediately.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): This is the original version of the bill.   JUSTIFICATION: While individual apartment improvements can justify rent increases in regulated units, there has been widespread abuse and lack of oversight. Landlords can currently claim unverified or inflated costs, leading to illegal rent hikes and tenant displacement. This bill introduces crit- ical accountability through random audits and physical inspections of. IAIs in areas outside of New York City, where oversight is often weaker. If overcharges are found, stronger enforcement through additional audits and penalties will deter future misconduct and promote compliance.   PRIOR LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Potential administrative costs for DHCR to conduct audits and inspections, but long-term savings through improved enforcement and prevention of rent fraud.   EFFECTIVE DATE: This act shall take effect immediately.
Go to top

A08898 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8898
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 12, 2025
                                       ___________
 
        Introduced  by  M.  of  A.  BURROUGHS  --  read once and referred to the
          Committee on Housing
 
        AN ACT to amend the emergency    tenant  protection  act  of    nineteen
          seventy-four  and  the emergency housing rent control law, in relation
          to audits of individual  apartment   improvements   in rent  regulated
          units

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision (c) of section 10-b of section 4 of chapter 576
     2  of the laws of 1974, constituting the emergency tenant protection act of
     3  nineteen seventy-four, as added by section 6 of part K of chapter 36  of
     4  the laws of 2019, is amended to read as follows:
     5    (c)  The  division shall establish, for regulated units located in any
     6  city having a population of less than one million, or a town or village,
     7  for which an emergency has been declared pursuant to  section  three  of
     8  this act, an annual inspection and audit process which shall review five
     9  percent  of  individual  apartment improvement notifications pursuant to
    10  this section and the rules and regulations of the division. Such process
    11  shall include individual inspections and document review to ensure  that
    12  owners  complied with all obligations and responsibilities under the law
    13  for individual apartment improvements. Inspections shall include in-per-
    14  son confirmation that such improvements have been completed in such  way
    15  as  described in the notification.  In the event an audit finds that the
    16  recoverable  costs claimed  by   the landlord cannot  be  substantiated,
    17  the resulting overcharge shall be considered to be willful.
    18    (d)  The  division  shall  issue  a notice to the landlord and all the
    19  tenants sixty days prior to the  end  of  the  temporary  major  capital
    20  improvement increase and shall include the initial approved increase and
    21  the  total  amount to be removed from the legal regulated rent inclusive
    22  of any increases granted by the applicable rent guidelines board.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13107-03-5

        A. 8898                             2
 
     1    § 2. Subdivision 3 of section 8-a of chapter 274 of the laws of  1946,
     2  constituting the emergency housing rent control law is renumbered subdi-
     3  vision 5 and two new subdivisions 3 and 4 are added to read as follows:
     4    3. The division shall establish, for housing accommodations outside of
     5  the city of New York, an annual inspection and audit process which shall
     6  review five  percent  of individual  apartment improvement notifications
     7  pursuant  to  this section and the rules and  regulations  of the  divi-
     8  sion.  Such  process  shall include individual inspections and  document
     9  review  to  ensure  that  owners complied   with   all   obligations and
    10  responsibilities under the law for  individual  apartment  improvements.
    11  Inspections  shall  include  in-person confirmation  that  such improve-
    12  ments have been completed in such way as described in the  notification.
    13  In  the  event  an  audit finds that the  recoverable  costs claimed  by
    14  the landlord cannot be substantiated, the resulting overcharge shall  be
    15  considered to be willful.
    16    4.  If  the owner is found to have willfully overcharged a tenant as a
    17  result of the conclusion of an audit  pursuant  to  subdivision  two  or
    18  three  of  this section, the division shall conduct additional audits of
    19  all housing accommodations under their  ownership  in  addition  to  the
    20  penalties prescribed by this chapter.
    21    §  3.   Subdivision a of section 12 of section 4 of chapter 576 of the
    22  laws of 1974, constituting the emergency tenant protection act of  nine-
    23  teen  seventy-four,  is amended by adding a new paragraph 1-a to read as
    24  follows:
    25    (1-a) If the owner is found to have willfully overcharged a tenant  as
    26  a result of the conclusion of an audit conducted pursuant to subdivision
    27  (b)  or  (c)  of  section  ten-b of this act, the division shall conduct
    28  additional audits of all rent regulated units under their  ownership  in
    29  addition to the penalties prescribed by this section.
    30    § 4. This act shall take effect immediately.
Go to top