Changes in the composition of the New York State Senate in Albany may lead to some dramatic changes in the law that building owners should be aware of. One such change is proposed by Senate Bill S3712. This bill is described by its’ sponsor as a bill that would prohibit an owner from adjusting the amount of a preferential rent in a rent-stabilized tenancy upon the renewal of the lease.
If it passes, the proposed bill will amend the language of the current law by removing three words: “or upon renewal.” Currently, the law permits a building owner to remove a preferential rent (a lower rent charged to the tenant below the legal rent) upon vacancy or upon renewal. If this law passes and it’s not vetoed, a building owner will no longer have the ability to remove the preferential rent upon renewal and instead be limited to removal of a preferential rent upon the vacancy of a tenant.
At the time of the writing of this article, this bill is “in committee.” Owners should be aware of the possibility of this amendment when offering renewal leases to rent-stabilized tenants and prepare accordingly.
Jordi Fernandez Law, P.C.
420 Lexington Avenue, Suite 2920
New York, NY 10170