As we advised in previous email blasts, last summer, the New York State Legislature passed two bills that sought to significantly impact rent stabilized properties: NYS Senate bills S2943B and S2980C.
S2943B sought to reverse the protections provided by the Court of Appeals in the Regina decision with respect to rent calculations and record retention. S2980C, in the language by which it passed the Legislature last summer, sought to, among other things: (1) establish a new methodology for calculating legal rents under certain scenarios in which apartments are newly created or modified; (2) require owners claiming exemption from rent stabilization due to substantial rehabilitation to file an application with, and obtain an administrative determination from, DHCR confirming the exemption; and (3) radically redefine the definition of “fraud” in the rent stabilization context.
On December 22, 2023, Governor Hochul signed S2980C, albeit critically, with a negotiated chapter amendment to be passed by the Legislature during the next legislative session which begins January 3, 2024. The fact that there is a negotiated chapter is significant because the law may differ drastically from the text originally recited in the bill, summarized above. Governor Hochul vetoed bill S2943B.
As of this writing, the text of the final version of the agreed-upon chapter amendment to S2980C has not been publicized. Once the final version is publicized, we will send you an email update with additional information.
Should you have any questions, please do not hesitate to reach out to your trusted R&E attorney.