September 19, 2019

RuthAnne Visnauskas
Commissioner
NYS Homes and Community Renewal
25 Beaver Street, 5th Floor
New York, NY 10004

Dear Commissioner Visnauskas:

Thank you for participating in the Manhattan Senate Delegation’s forum on New York State’s
recently enacted rent laws and offering to respond in writing to questions from attendees.

The forum attracted a large and engaged audience of community members eager to learn more
about the Housing Stability and Tenant Protection Act (HSTPA) of 2019 and how NYS Homes
and Community Renewal (HCR) is implementing the new laws. Attendees submitted over 150
questions about the details of the HSTPA, HCR’s plans to enforce the new laws, and the
potential impacts of the new laws on a wide range of specific situations in buildings and pending
cases. Below, you will find the policy-related questions and concerns forum attendees posed to
HCR (some questions have been combined or rephrased for clarity).

HCR’s Implementation and Enforcement of the HSTPA

The enactment of the HSTPA has created a substantial amount of additional

responsibility for HCR. Does the agency have the funding and resources it requires to
ensure that the new rent laws are proactively enforced?

The HSTPA prevents almost all rent regulated homes from being deregulated. Multiple
attendees raised concerns that some building owners may improperly treat vacant rent
stabilized units as market rate and stop registering them with HCR. What steps is HCR
taking to keep track of owners who fail to register units and hold them accountable?

When does HCR expect to release draft regulations implementing the HSTPA?
Is HCR considering any systemic changes to how the agency conducts oversight as a
result of the HSTPA?

Is HCR soliciting feedback from tenant lawyers and tenant advocates regarding how
oversight and enforcement can be improved?

What actions in HCR undertaking to accelerate the processing times for complaints filed
with the agency as well as Petitions for Administrative Review (PAR)? Multiple
attendees indicated they were forced to wait at least two years for their original
complaints to be decided, and even longer for decisions on PARs.

Is HCR hiring additional staff and inspectors to respond to tenants’ complaints about
building conditions and other reductions in services? A number of attendees stated that
they had to wait six months to a year for an inspector from HCR to visit their homes after
filing complaints about serious conditions.

Rent Control

The HSTPA ends fuel pass-alongs for rent controlled tenants, and the section of law was
effective immediately. Does this mean that rent controlled tenants could stop paying
pass-alongs on June 14, 2019 or they need to wait January 1, 2020 (or another date)?
Will HCR be notifying rent controlled tenants and building owners when fuel pass-alongs
can no longer be collected?

The HSTPA lowers the rent increase cap for MCIs approved in the last seven years that
have not been fully included in tenants’ rents. For rent stabilized tenants, the cap is
lowered from 6% to 2% at their next lease renewal. When is the cap lowered from 15%
to 2% for rent controlled tenants given that they do not have lease renewals?

Major Capital Improvements (MCIs) and Individual Apartment Improvements (IAIs)

When does HCR expect to publish the schedule of reasonable costs for MCIs and IAIs
required by the HSTPA? Is the agency waiting to process new MCI applications until the
schedule is published?

Will the old MCI laws and regulations, or the HSTPA, govern MCI applications
submitted (but not approved) before June 14, 2019?

Will the previous MCI laws, or the HSTPA, govern HCR’s processing of PARs related to
MCI applications after June 14, 2019?

The HSTPA prohibits MCIs in buildings where 35% or fewer of the units are rent
regulated. How can tenants find out what percentage of units in their buildings are
registered as rent regulated with HCR?
 A number of attendees commented that substantial construction has taken place in past
years in their buildings without proper permits; some of this unpermitted work was done
so owners could increase rents through Individual Apartment Improvements. What steps
does HCR plan to take to ensure that MCI and IAI related work is completed by licensed
contractors who have the required building permits?

Impact of the HSTPA on Pending Deregulation and Overcharge Cases

The HSTPA ended high income high rent deregulation. How is HCR handling Petitions
for High Income High Rent Deregulation from 2019 and prior years that were pending at
the agency when the law was changed? Does the change in law affect high income high
rent decontrol cases that are currently under appeal at HCR?

The HSTPA extended the rent overcharge look-back period to six years (or as long as
necessary to establish a reliable base rent). Is HCR applying this longer look-back period
to rent overcharge complaints that were filed but not decided before June 14, 2019? Does
the longer look-back period apply to overcharge cases currently under appeal at the
agency?

Given that HCR is still in the process of drafting new regulations on the HSTPA, and that the
courts may weigh-in on some of the issues in the future, I understand you may not be able to
answer all the questions at this time. Nevertheless, I believe it is important for HCR to
appreciate the range of questions and concerns raised by community members.

Thank you again for participating in the September 10th forum, and the work HCR has already
begun to educate residents about the HSTPA. I look forward to continuing to work together to
protect and expand affordable housing.

Sincerely,

Liz Krueger
State Senator

cc: State Senator Brian Benjamin

State Senator Brad Hoylman
State Senator Robert Jackson
State Senator Brian Kavanagh
State Senator Jose Serrano