BILL NUMBER: S8046
SPONSOR: BYNOE
 
TITLE OF BILL:
An act to amend the emergency tenant protection act of nineteen
seventy-four, in relation to audits of individual apartment improve-
ments in rent regulated units
 
PURPOSE:
Requires the Division of Housing and Community Renewal to establish an
audit of individual apartment improvements for rent stabilized units
outside of New York City.
 
SUMMARY OF PROVISIONS:
Section 1. Amends subdivision (c) of section 10-b of section 4 of
chapter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as added by section 6 of park K
of chapter 36 of the laws of 2019 to provide that the division of Hous-
ing and Community renewal shall establish an audit process to review 5
percent of individual apartment improvement notifications. Such audit
process shall include individual inspections and document review to
ensure compliance with current law.
Section 2. Amends subdivision a of section 12 of section 4 of chapter
576 of the laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four by adding a new paragraph 1-a that provides
that if an owner is found to have willfully overcharged a tenant in the
audit process for individual apartment improvements and major capital
improvements, then that owner shall be subject to audit for all other
rent stabilized units under their ownership.
Section 3. Effective Date.
 
JUSTIFICATION:
The Housing Stability and Tenant Protection Act of 2019 mandated that
the Division of Homes and Community Renewal (DHCR) audit 25% of tempo-
rary major capital improvement (MCI) rent increases to prevent unjusti-
fied rent hikes in rent-stabilized apartments. This bill builds on that
foundation by extending mandatory auditing to 5% of Individual Apartment
Improvements (IAIs) occurring outside of New York City.
This measure will enhance oversight and accountability in the IAI proc-
ess, helping to ensure that improvements are legitimate and that tenants
are not subject to unlawful or inflated rent increases. Importantly,
the bill also establishes that if DHCR discovers a willful overcharge in
the course of an audit, it must initiate audits of all other buildings
owned by the same landlord.
Tenants deserve equal protection from abuse, and targeted random audits
are a practical and effective tool to ensure compliance with the law.
 
LEGISLATIVE HISTORY:
None.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:
To Be Determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.