BILL NUMBER: S240
SPONSOR: KRUEGER
 
TITLE OF BILL:
An act to amend the emergency tenant protection act of nineteen seven-
ty-four and the administrative code of the city of New York, in relation
to leasing to business and other entities
 
PURPOSE OR GENERAL IDEA OF BILL:
To require that the primary resident of a rent-regulated unit be a
natural person.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the Emergency Tenant Protection Act of 1974, adding a
new section 5-b, requiring that a Rent Stabilized unit be occupied as a
primary residence by a natural person. If the tenant is a corporate or
other entity, the occupant must be a natural person who is a current or
retired employee of the entity.
Section 2 amends the Emergency Tenant Protection Act of 1974 § 12 (a)
(3) (i), authorizing the commissioner to impose civil penalties on
Parties that violate section 1 of this act.
Section 3 amends the Administrative Code of the City of New York §
26-512, adding a new subdivision f, prohibiting a landlord from knowing-
ly renting a rent-regulated unit to a person or entity that is not using
the accommodation as a primary residence.
Section 4 amends the Administrative Code of the City of New York 26-516
Subdivision f authorizing the commissioner to impose civil penalties on
parties that violate section 3 of this act.
Section 5 is a severability clause Section 6 is the effective date
 
JUSTIFICATION:
There is a growing problem of landlords renting apartments to companies
that in turn rent them out to transients (tourists, short-stay occu-
pants) as illegal hotel rooms. This bill would require that rent regu-
lated apartments be used for residential purposes.
The purpose of rent regulation is to protect the stock of affordable
housing for permanent residential purposes. The practices this bill
would undermine the affordable housing market. Current law allows a
landlord to evict a tenant from a rent-regulated apartment if it is not
the tenant's primary residence. But a landlord is currently not barred
from renting a rent-regulated apartment for non-primary residence.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: S.130/A3513 Passed Senate
2021-2022: S510/1364
2019-2020: S1918/A642
2017-2018: S3186/A4803
2015-2016: S2829A
2013-2014: S1774
2011-2012: S.406
2010: S.8283/A.9832-43 The provisions of this bill were part of A.6013
of 2009.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect after sixty days.