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Housing Keith L.T New York State Assembly Carl E. Heastie Speaker Committee on Housing Keith L.T. Wright Chair 2016 ANNUAL REPORT 2016 ANNUAL REPORT OF THE ASSEMBLY STANDING COMMITTEE ON HOUSING KEITH L.T. WRIGHT, CHAIR Members of the Committee Majority Minority Vivian E. Cook Michael J. Fitzpatrick, Ranking Minority Member Annette M. Robinson Andrew P. Raia Linda B. Rosenthal Christopher S. Friend Brian Kavanagh Al Graf Michael P. Kearns Mark Johns Francisco P. Moya Steve Katz Robert J. Rodriguez Raymond Walter Luis R. Sepúlveda Ronald Castorina Jr. Walter T. Mosley Ron Kim Victor M. Pichardo Guillermo Linares Latrice Walker Latoya Joyner Michael Blake Erik M. Dilan Rodneyse Bichotte Maritza Davila Alice Cancel Staff Giovanni Warren, Assistant Secretary for Program and Policy Sara Neitzel, Associate Counsel Michael Szydlo, Senior Analyst Jeanine R. Johnson, Chief of Staff Francisco Polanco, Committee Clerk 1 Table of Contents I. COMMITTEE JUSRISDICTION AND PURVIEW .............................................. 3 II. 2016 LEGISLATIVE HIGHLIGHTS ..................................................................... 4 A. Rent Regulation ................................................................................................. 4 Submetering Rent Reduction Schedules ............................................................... 4 Curtailing the Inappropriate Use of Preferential Rents ......................................... 4 Major Capital Improvement Rent Adjustments .................................................... 5 Vacancy Rent Increases ....................................................................................... 5 Major Capital Improvement Modifications .......................................................... 5 B. Mitchell-Lama Public Housing ......................................................................... 5 Four-Year Moratorium and Program Study ................................................................5 Income Thresholds ........................................................................................................6 Additional Information Regarding Buy-Outs ...............................................................6 C. Public Housing .................................................................................................. 6 Adding Legal Occupants to a Lease .............................................................................7 Notice upon Denial of Request .....................................................................................7 Notice to Mobility-Impaired Tenants ................................................................... 7 Notice of Opportunity to Meet to Discuss Possible Termination of Tenancy .............7 Relates to Sidewalk Shed Permit Renewals .................................................................7 D. Other Legislation ............................................................................................... 8 Refinancing Provisions in Ground Leases ............................................................ 8 Bedbug Inspection and Extermination.................................................................. 8 Reviewing and Reporting on Section 3 Projects ................................................... 8 Prohibiting Certain Advertising Relating to Multiple Dwelling Units................... 8 State of New York Mortgage Agency Mortgage Insurance Fund ......................... 9 Bonding Authority of the New York City Housing Development Corporation ..... 9 Bond and Note Authorization by the Housing Finance Agency and the State of New York Mortgage Agency ................................................................. 9 Establishes the Community Restoration Fund .................................................... 10 III. SFY 2016-2017 BUDGET HIGHLIGHTS ......................................................... 11 A. Division of Housing and Community Renewal Capital Projects .................... 11 B. Aid to Localities ................................................................................................ 12 C. The Mortgage Insurance Fund ........................................................................ 13 IV. LEGISLATIVE HEARINGS .............................................................................. 14 APPENDIX A .............................................................................................................. 15 APPENDIX B .............................................................................................................. 16 APPENDIX C .............................................................................................................. 18 2 I. COMMITTEE JUSRISDICTION AND PURVIEW The New York State Assembly Standing Committee on Housing is responsible for legislation on housing development and preservation. Its purview includes rent regulation, as well as legislation amending the following areas of the New York State Law: Multiple Dwelling Law, which encompasses health and safety standards for buildings with three or more families living independently of each other in New York City, and any other city, town, or village that has chosen to adopt the law; Multiple Residence Law, which covers health and safety standards for buildings with three or more families living independently of each other in all cities, towns, and villages outside of New York City; Private Housing Finance Law, which governs the following entities and programs: Mitchell-Lama; Limited Dividend Housing Companies; Low Income Housing Trust Fund; Affordable Home Ownership Development; Permanent Housing for Homeless Families; Manufactured Home Cooperative Fund; Housing Development Fund Companies; Neighborhood Preservation Companies; Rural Area Revitalization; Rural Rental Assistance; Urban Initiatives; Rural and Urban Community Investment Fund; several New York City programs; and the administration of the New York State Housing Finance Agency and New York City Housing Development Corporation; and Public Housing Law, which covers the safety, management, and financing of local public housing authorities throughout the State. In addition to these laws, the Committee has jurisdiction over legislation amending housing- related sections of the Executive Law, Real Property Law, Real Property Actions and Proceedings Law, and Public Authorities Law – and the following unconsolidated areas of New York Law: the Emergency Housing Rent Control Law; the Local Emergency Housing Rent Control Law; the New York City Rent Stabilization Law; the Emergency Tenant Protection Act of 1974; sections of the New York City Administrative Code and the City of Buffalo Administrative Code; and sections of the General Business Law that relate to the conversion of real property from rental to cooperative or condominium status. 3 II. 2016 LEGISLATIVE HIGHLIGHTS A. Rent Regulation Rent regulation laws protect tenants residing in rent-stabilized or rent-controlled apartments in New York City as well as in Nassau, Rockland, and Westchester counties. A large majority of rent-regulated tenants reside in New York City. Initial findings from the 2014 New York City Housing and Vacancy Survey (HVS), conducted by the U.S. Census Bureau, estimate that there are approximately 1.057 million rent-regulated units within New York City, representing around 48.4 percent of the City’s total rental housing stock. For rent regulation laws to apply, a municipality must declare a rental housing emergency – defined as a housing stock vacancy rate of 5 percent or lower. According to the 2014 HVS, the vacancy rate in New York City and some surrounding counties remains under 5 percent, with the two most recent reports showing a New York City vacancy rate of 3.12 percent in 2011, and 3.45 percent in 2014. Due to the existence of this emergency, intervention is critical to protect tenants from unreasonable rent increases and evictions. Listed below is legislation related to rent regulation intended to protect tenants and maintain the fairness of the laws governing these housing units. 1. Submetering Rent Reduction Schedules A.658 (Hevesi); Passed Assembly This bill would require the Division of Housing and Community Renewal (DHCR) to formulate and publish a schedule of rent adjustments relating to the conversion to individual metering in buildings that factored electricity into the base rent prior to the conversion to direct metering or submetering in order to facilitate fair rent reductions. Upon the building’s conversion, this bill would require all tenants to be responsible for their own electric consumption except for those already receiving certain rent-increase exemptions. 2. Curtailing the Inappropriate Use of Preferential Rents A.3809-A (Wright); Passed Assembly A preferential rent is a rent amount that an owner agrees to charge, which is lower than the legal regulated rent. This bill would prohibit owners from discontinuing use of the preferential rent terms upon the renewal of a tenant’s lease. It would also prohibit an increase in the preferential rent upon vacancy if the vacancy is caused by the landlord’s violation of the warranty of habitability. 4 3. Major Capital Improvement Rent Adjustments A.3957-A (Wright); Passed Assembly This bill would require that major capital improvement (MCI) rent adjustments be offset by the total amount, or 100 percent, of any annual tax abatement benefits received. Adjustments would also be offset by any tax abatement benefits that were received prior to such adjustments, if they are a result of participation
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