Good Cause Eviction Discussions Escalate Ahead of Budget Deadline
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
WE HOUSE NEW YORK April 2023 | VOL. 42 ISSUE 4
Good Cause Eviction Discussions
Escalate Ahead of Budget Deadline
Negotiations Ramp Up Heading into April
Although the State Senate and Assembly both excluded the Good approximately 30,000 affordable units. If the Governor stands
Cause Eviction legislation from their individual budget proposals, firm on her position on Good Cause Eviction, RSA is optimistic that
progressive, anti-owner lawmakers continue to do everything in it will not be included in the budget or generate the support that it
their power to get the controversial bill passed. would need to advance as a standalone bill before the end of the
On March 14th, the Senate and Assembly made headlines when legislative session in June.
their one-house budgets were released and excluded nearly all In the days leading up to the tentative April 1st deadline to finalize
of Governor Kathy Hochul’s priorities that were highlighted in a State budget, tenant activists continued to put pressure on
the preliminary budget that she released in early February. The progressive lawmakers and Governor Hochul with rallies in
exclusions included critical components of the Governor’s housing Albany and New York City. This included optimism from notable
agenda that focused on building thousands of new affordable units bill supporters, such as Senator Michael Gianaris, who believe
over the next decade. that the bill would ultimately be included in the final State budget.
Fortunately, neither the Senate nor the Assembly included the Fortunately, our Homeowners for an Affordable New York
actual Good Cause Eviction legislation in their budget proposals. (HFAANY) coalition has amplified its efforts to stop this bill over
However, the Senate did note that “the Senate supports advancing the month of March. Though the digital ad and mail components of
tenant protections that align with the core principles of Good our campaign have been extremely successful, the press and public
Cause Eviction.” The Assembly stopped short of explicitly relations component gained a lot of steam throughout March with
endorsing Good Cause Eviction, instead pledging to “explore impactful articles and op-eds in major news publications.
pathways to protect tenants from arbitrary and capricious rent As we went to press, it became more likely that the budget would
increases and unreasonable evictions of paying tenants.” Now not pass on time. However, it is in the best interest of both the
that these one-house budgets have been put forward, the Governor Governor and the Legislature to come to an agreement as soon as
and Legislature were set to begin intense budget negotiations as possible. As a result, we expect to have critical updates on Good
we went to press. Cause Eviction and the State budget in between issues of the
Though the Governor has repeatedly shown that she is not willing RSA Reporter. Please be on the lookout for these updates in our
to support Good Cause Eviction, some progressive members of the triweekly email blasts.
Senate and Assembly still believe that they can negotiate this bill In the meantime, you must continue putting pressure on your State
into the budget. They are certain that they can achieve Good Cause representatives and urge them not to support this bill. You should
Eviction as a “trade-off” for one of Governor Hochul’s preliminary call or visit their district offices, or contact them directly through
budget priorities, such as charter schools, bail reform amendments, our HFAANY coalition. Please visit www.hfaany.com and follow
or an extension of approved 421-a projects that would produce the action links to email your Senator and Assembly Member. n
IN THIS ISSUE:
1 Good Cause Eviction Discussions .Escalate 11 .Reminder: New DSNY Regulations in Effect as of April 1
Ahead of Budget Deadline 13 .Criminal Background Check Bill Appears to be Sidelined
2 President’s Message 15 .Reminder: DEP Water Bill Amnesty Program Ends This Month
CITY & STATE ROUNDUP inside rsa
3 .Mayor Adams Appoints New RGB Chairperson 3 Moving On – Thank You!
7 .Filing Period Begins for RPIE Statements and Rent 4 In the News
Roll Addendums in the courts
8 .DSNY Offers S.A.F.E. Disposal Events This Spring 13 .Critical Victory Issued by Court of Appeals in J-51 Case
9 .Kingston Owners, KRGB File Separate Appeals to 14 Ask The Administrator
Appellate Division 16 Calendar of Events
10 .Council Enacts Package of Bills to Improve E-Bike Usage
PRESIDENT’s
CITY & STATE message
ROUNDUP
By The Numbers considered when talking about attempts to force NYC-style
As Albany finalizes the State budget (see page 1), rent regulation on Long Island, Western New York, the Hudson
which we are optimistic will not include the reckless Valley, Capital Region, North Country, Central New York and
Good Cause Eviction legislation, there has the Finger Lakes Region.
been a noticeable shift in what has gotten more Policymakers are talking about the differences between the
Joseph Strasburg attention than in years past: the actual numbers. districts of the legislators trying to impose Good Cause Eviction
The price of things is getting discussed more. The cost of and those legislators who understand how bad policies will force
complying with the countless regulations that building owners property tax increases on single-family homes in their districts
face is being discussed more. Who pays is being discussed and blow up the budgets of their local villages, towns and cities.
more. Who benefits is being discussed more. The supply side The New York City Rent Guidelines Board (RGB) – which is
of things is being paid attention to instead of just talking about separate from Albany, though impacted by Albany decisions –
needs. The cost to families and communities in terms of lost finally focused more on the data in 2022 and we expect they
opportunities to build and pass on generational wealth is being will again in their 2023 deliberations (see page 3 for more
more widely discussed. Inflation is being considered not just for information).
tenants’ budgets, but also as increases in what building owners None of this just happened. This shift isn’t an accident. You
are paying. make it happen. We make them pay attention. We never stop
Reporters are fact checking tenant advocates’ claims about so- focusing on the numbers. We insist that economic reality guide
called eviction tsunamis. Housing Court data is being examined. conversations. We do the hard work of making change by
Calendars going back years are being consulted when talking staying a clear and consistent and reliable voice for all of New
about how long non-payment cases are languishing on court York’s affordable housing providers.
dockets. Some in government are actually concerned about how Looking ahead, we need to fight to keep policymakers focused
much Emergency Rental Assistance (ERAP) funding may have on the numbers. If the intentionally mislabeled Good Cause
gone to high earners who simply didn’t want to pay their rent. Eviction stays out the State budget agreement, it could still be
Bronx building owners recently agreed to a new contract with considered afterwards in mid-April, May and June. Working
their building workers. RSA assisted by providing extensive with a statewide coalition of property owners – Homeowners
data on how the 2019 rent laws (HSTPA) continue to wreck for an Affordable New York (HFAANY) - RSA will stay laser-
the economic life of buildings and the ability to maintain focused on keeping the numbers that make up the reality of
apartments and invest in rehabilitating vacant apartments after running your buildings: income and expenses.
decades-long tenancies. We detailed how insurance costs have As our coalition continues to hammer away on the facts and
skyrocketed, some policies by 300 percent. Increases in water numbers about Good Cause Eviction through digital ads,
and sewer bills and property taxes were plainly discussed. A mailings, social media and op-eds and articles in the press, it is
one-year contract “reopener” – an option solely at the request important that our membership remains on standby to help us
of owners – was included in the final agreement in recognition win this battle once again. Be on the lookout for the latest news
of building costs that are expected to shift for the worse. and instructions through RSA’s email blasts in between issues
RSA has long been at the forefront of advocacy and litigation of the RSA Reporter. As the leading property owner advocacy
challenging New York City’s unfair property tax system. group, we will continue to do our part, but your voices must be
Apartment buildings are unfairly taxed compared to other heard by the Governor and State lawmakers.
residential properties. While before we were yelling about this The numbers are straightforward and they’re on our side. n
from the edges of the conversation, we’re now in the middle of
it all. Again, it’s about numbers.
New York’s diverse demographics are being more fully
Rent Stabilization Association ♦ 123 William Street New York, NY 10038-3804 ♦ http://www.rsanyc.org ♦ (212) 214-9200
Disclaimer: Every effort is made to provide accurate and up-to-date information in RSA publications and bulletins. However, information or advice
provided in these publications should not be taken as legal opinions. Always consult your attorney when in doubt. The RSA Reporter is intended for
the exclusive use of RSA members. This publication may not be reproduced, in whole or in part, without the written permission of the RSA. The RSA
welcomes comments, suggestions and questions from its members.
Editor: Vito Signorile Production: Christine Chu. Copyright 2023, Rent Stabilization Association of N.Y.C., Inc., 123 William Street, NY, NY 10038.
The RSA Reporter (ISSN #1089-9375) is published monthly (except August) by the Rent Stabilization Association of N.Y.C., Inc., 123 William
Street, New York, NY 10038-3804. Periodicals postage paid at New York, NY.
POSTMASTER: Send address changes to The RSA Reporter, 123 William Street, 12th Floor, New York, NY 10038-3804.
2 | April 2023
CITY & STATE ROUNDUP
Mayor Adams Appoints New RGB Chairperson
Deliberations Began at the End of March
As the rental housing industry patiently waits for the City Rent able to preserve after paying building operating expenses.
Guidelines Board (RGB) to begin deliberations this year, a new Last year, building owner NOI decreased by 7.8 percent,
chairperson has been appointed by Mayor Eric Adams. the largest decrease in 17 years and the second largest decrease
On March 10th, Mayor Adams named Nestor Davidson as the new in the 55-year history of the RGB. The decrease in NOI was
chairman of the RGB, replacing David Reiss, who had served a result of numerous factors: the financial impact of the
as the Board’s chairman between 2019 and 2022. Davidson COVID-19 pandemic, zero and historically-low rent guidelines
is a professor of housing and land use at Fordham University under former Mayor Bill de Blasio, and the effects of the
School of Law and according to the Adams Administration, he stringent amendments to the State rent-stabilization laws in
is an “expert in affordable housing and land use law” and brings 2019. Although this issue of the RSA Reporter went to press
decades of experience in government and academia to the role. before the release of the 2023 report, RSA was anticipating
Former chairman Reiss notified the administration of his the I&E to show alarming trends once again as a result of the
resignation in early 2023, which prompted the Administration ongoing financial struggles faced by property owners.
to appoint a replacement. Reiss was first appointed to the RGB The RGB is expected to hold additional meetings throughout
as a public member in 2017 and was elevated to chairman prior the month of April, followed by the preliminary vote in early
to the 2019 deliberations. May. In next month’s issue of the RSA Reporter, we will
On March 20th, the RGB announced that they would hold their provide a summary of all important data contained in the
first meeting of 2023 in-person on March 30 th. At that meeting, major RGB reports. We will also provide you periodic updates
the RGB staff was preparing to discuss the 2023 Income and in the triweekly RSA email blasts.
Expense (I&E) study, a key report that will play a critical role To view the RSA reports as they are released, as well as
in how the RGB determines rent adjustments that will go into sign up for email updates directly through the RGB, visit
effect on October 1, 2023. Historically, the main area of focus www.nyc.gov/rgb. To read the official press release from the
in this report is building owner net operating income (NOI), Mayor concerning the appointment of the new RGB chairperson,
which is the amount of rental income that building owners are visit https://on.nyc.gov/3YJ76ub. n
Moving On – Thank You!
Dear RSA members,
I write to you with bittersweet, yet exciting news. After nearly 10 years at RSA, my last day at this
fantastic organization was March 31st. I have accepted a new position that I believe will have a major
impact on my career.
This news may come as a surprise, especially for those who I communicate and work with on a daily or
weekly basis. I have thoroughly enjoyed my time at RSA, particularly with the relationships I have built
with many of you, what we have been able to accomplish for the City’s affordable housing providers, and overall, what
I have learned individually and professionally. However, taking into consideration where I am in my personal life, as
well as my career goals, I realized that I am indeed ready for the next chapter and challenge in my life.
When I came to RSA in 2013, I was a very young professional and have learned so much over the last decade. Much
of what I have learned has not only improved my craft, but has improved the person that I am. I will forever be
grateful for the friendships I have made and maintained and I hope to continue many of them in the future.
As part of the transition process, many of you are already very familiar with RSA’s executive staff and for anything
that you and I would typically work together on, you can now reach out to any of these great professionals here.
RSA will always be home to me and I will continue doing all that I can in my spare time to help the City’s affordable
housing providers succeed.
Thank you!
Vito Signorile
April 2023 | 3CITY & STATE ROUNDUP
Kingston Owners, KRGB File Separate Appeals to Appellate Division
In an interesting development out of Kingston, the City’s rent that despite the errors in the City’s vacancy data demonstrated
guidelines board (KRGB) has filed a motion to appeal the Ulster by the Plaintiff, Kingston’s survey was not unreasonable and was
County Supreme Court’s ruling that struck down their vote to performed “in good faith based on reasonably adequate data and
rollback rents. proper methodology.”
At a KRGB meeting on March 15th, the board’s first meeting since With regard to the KRGB’s vote to set a rent reduction, Judge
Judge David M. Gandin’s mixed ruling on February 10th, the Gandin took issue mostly with the portion of the KRGB order that
nine-member board advanced a motion to request State Attorney set a 16 percent maximum increase in the rent of each affected
General Letitia James’ office to file an appeal of the Court’s ruling unit as measured during the time period between January 1, 2019
to overturn the KRGB’s vote to rollback rents in November, 2022. and the date of the order, finding that the Emergency Tenant
During the meeting, KRGB chairman Noah Kippley-Ogman stated Protection Act (ETPA) does not give the KRGB blanket authority
that Judge Gandin’s decision improperly attributed retroactive “to simply declare rent adjustments for all subject units based on
actions regarding rents to the board, which would be outside of fixed percentages.” Rather, “a case-by-case determination as to
their remit, and as a result, came to an inaccurate conclusion about the fair market rental value for each unit” must be made in order
the board’s actions and their application of the law. to set initial legal regulated rents for these newly stabilized units.
Almost immediately after the meeting, the Attorney General’s The Court found that the “practical effect of the RGB creating rent
office filed a notice of appeal on behalf of the KRGB and now the increase limitations retroactive to January 1, 2019 is to rewrite
Appellate Division, Third Department, will hear both the board’s the effective date of the HSTPA.” As a result, the Court vacated the
challenge and the Hudson Valley Property Owners Association’s KRGB order in its entirety, and remitted the matter back to KRGB
(HVPOA) challenge of the Court’s decision to uphold the City’s so that guidelines could be established based on the language in
decision to opt into rent stabilization. Kingston property owners the Court’s order.
had filed a notice of appeal to that decision weeks before the Consistent with other State municipalities that have opted into rent
KRGB’s March meeting. On March 9th, tenant groups in Kingston stabilization, the KRGB will now convene throughout the spring to
had also filed an appeal over the Court’s decision to invalidate the determine rent adjustments for stabilized apartments in Kingston
15 percent rent reduction. that will be in effect from October 1, 2023 through September 30,
As you may recall, the February ruling from Judge Gandin was 2024. We will keep you apprised of all developments with regard
a mixed result at best. In terms of Kingston’s efforts to declare a to the KRGB deliberations, as well as updates concerning the
housing emergency and opt into rent stabilization, the Court found progress in court. n
The RSA App For Your
Tenants Is Here!
With the RSA App, your tenants can now pay their rent digitally via credit card, ACH,
or scanned checks & money orders – making it easier for you to get paid quicker.
There is NO reason why your building and tenants shouldn’t have access to this
commonplace tool. It’s easy to use and we’ll set it all up for you & your tenants.
Start Today: https://qira.com/rsawelcome.html Need More Info: rsa@qira.com | 888.497.5499
Schedule a Demo: https://calendly.com/ron-qira/30min
April 2023 | 9CITY & STATE ROUNDUP
Criminal Background Check Bill Appears to be Sidelined
Federal Court Ruling Could Provide an Assist
Although momentum to pass Council Member Keith Powers’ court approvingly cited a San Francisco ordinance that allows
controversial bill that would eliminate criminal background affordable housing providers to consider an applicant’s
checks on prospective tenants has cooled, it is important that convictions from the previous seven years. That ordinance,
our industry is prepared to take action at any moment. known as the Fair Chance Law, allows an owner to reject
an applicant whose record raises serious concerns about
Since the City Council Committee on Civil and Human Rights
safety, as long as the applicant has an opportunity to present
held a hearing on Intro. 632 back in December, 2022, a
evidence of rehabilitation and recommendations from others.
large majority of Council Members seemed to have lost the
appetite to pass the legislation. Supporters of the reckless In New York City, Intro. 632, as well as the 2021 version of
bill have received immense backlash, not only from the rental the bill sponsored by former Council Member Stephen Levin,
housing industry, but from hundreds of constituents in their already raised legal concerns. The decision from Ninth Circuit
own districts. With City Council primary races taking place in is a major blow to any Council Member who supports Intro.
June, followed by a general election in November, it is likely 632 as it is currently written. In all likelihood, legislation co-
that incumbent Council Members who are receiving the most sponsors would have to consider an amended version of the
pressure over this bill will not support it. bill that is similar to fair chance laws in other municipalities
throughout the country. This includes a law in Detroit
Over the last few months, RSA has engaged in dialogue
known as the Fair Chance Access to Rental Housing. This
with various Council Members over Intro. 632. Those close
law does not permit building owners from denying housing
to Council Member Powers have acknowledged that the
to prospective tenants with arrests or convictions, but does
bill cannot pass as is, particularly since Mayor Eric Adams
allow them to perform the background check and deny them
signaled that the proposal needs a massive overhaul before he
if they have a criminal history of certain crimes. Prior to
can consider supporting it. Although we have had meetings
this recent lull period on Intro. 632, many Council Members
with Council staff about potential amendments to the bill
were considering amendments to the bill that would echo the
that would be workable for the City’s rental property owners,
Detroit law. For reference, a copy of the Detroit law can be
there has been no recent conversations about expediting an
viewed by visiting https://bit.ly/3wcfdDD.
amended version of this bill.
Despite these positive updates, Council Member Powers and
Furthermore, a positive ruling on a similar matter came on
his colleagues could reignite their interest in Intro. 632 at
March 21 st when the U.S. Court of Appeals for the Ninth
any given moment. Should that happen, we will notify our
Circuit struck down part of an ordinance in Seattle (also
membership in a timely manner and convey information as
affecting laws in Oakland and Berkeley) that bans nearly all
to how you can assist in our efforts to speak up against the
questioning about a prospective tenant’s criminal record. The
controversial bill. n
Critical Victory Issued by Court of Appeals in J-51 Case
RSA & CHIP Joined as Co-Amici
The State Court of Appeals provided an important victory for and remanded the proceeding to the Supreme Court. The Court
rent-stabilized property owners by reversing a lower court essentially made it clear that in the context of post-Roberts
decision involving a J-51 class action. deregulation during the J-51 tax abatement period, there is no
The case, Casey v. Whitehouse Estates, involved application per se fraud rule, holding that the “defendants deregulation
of the default formula where “fraud” was alleged, in the of the apartments was based on this same ‘misinterpretation
context of post-Roberts J-51 deregulation, but potentially of the law’ involved in Regina and therefore that conduct
applied to any overcharge. Application of a fraud exception, does not constitute fraud.” Furthermore, the Court of Appeals
which permits a Court to examine the rent roll beyond the reiterated that the default formula should not be applied in
lookback period (four or six years, depending on whether this context where it is possible to determine the rent charged
HSTPA applies or not), and also apply the default formula on the base date.
rather than examine the base date rent and permissible Adrienne Koch from Katsky Korins LLP represented RSA
increases, was expanding under recent Appellate Division and CHIP in a joint amicus brief filed on behalf of the
First Department caselaw, to the point that there was a split rental housing industry, arguing that application of the
between the First and Second Departments on this issue. default formula should be an exception, not the rule, in J-51
On March 16 th, the Court of Appeals ultimately reversed the deregulation class action cases, based on a finding of an
actual fraudulent scheme. n
Appellate Division in a unanimous 6-0 decision, finding that
the tenant-plaintiffs were not entitled to summary judgment,
April 2023 | 13You can also read
