NewYorK | Homes and Grromuwr | Community Renewal ‘ANDREW M. CUOMO [RUTHANNE VISNAUSKAS Governor CCommissionerCEO December 2, 2019 Senator Liz Krueger 211 East 3rd Steet, Ste 1201 ‘New York, NY 10017 Ena rucner@nysenate gov Dear Senator Krueger: 1 was my pleasure to attend the Manhattan Senate Delegation’s community forum about the Housing Stability and Tenant Protection Act of 2019. Our agency is working diligently to operationalize and implement this complex legislation. It is our intention to attend similar events allover the City and State fo ensure tenants and landlords are aware of and understand the sweeping changes tothe rent laws. As promised, here are the answers to the questions raised by the forums attendees. I hope these responses clarify any outstanding concems. HR'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 2019-20 enacted budget included a $17.7M increase for the Office of Rent Administration to hire an ‘addtional 94 FTEs. Inthe four months since HSTPA. was enacted, HICR has been working diligently to hire additional staf in various ORA titles including but not limited torent inspectors. DHCR has engaged the NYS Department of Civil Service to assist with this tremendous task. ‘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? Since 2013, the Tenant Protection Unit (TPU) has closely monitored owners’ compliance with ther statutory obligation to annually register their buildings and apartments as rent stabilized. In light of the passage of the HSTPA, TPU will redouble its efforts to ensure that ret stabilized units remain in the system, To date, the TPU has returned approximetely 80,000 units to stabilization. ‘When does HCR expect to release draft regulations implementing the HSTPA? HER fs diligently working to draft regulations that will support HSTPA’s implementation and we expect 10 publish these new regulations in early 2020, NY State Administrative Procedures Act (SAPA) establishes theSenator Liz Krueger December 2, 2019 Page 2 ‘process that all New York State agencies must adhere to inthe development of rules and regulations and we look forward 1 receiving comments from all interested parties once the proposed regulations are posted. Is HER considering any systemic changes to how the agency conducts oversight as a result of the HSTPA? HER will continue its work in implementing the most sweeping tenant protection laws in a generation and ‘enforcing them as drafted by the legislature. Towards this goal, HCR will continue to examine its policies and procedures, Is HCR soliciting feedback from tenant lawyers and tenant advocates regarding how oversight and enforcement can be improved? HICR has met with Members of the State Legislature, tenant advocates, and other relevant stakeholders, The agency continues to welcome feedback from al interested parties regarding the delivery of our services and to ensue that residents can live in safe and decent housing, ‘What actions is HCR undertaking to accelerate the processing time for complaints filed with the agency as ‘well as Petitions for Administrative Review (PAR)? Multiple attendees indicated they were forced to w: at least two years for their original complaints to be decided, and even longer for decisions on PARS. (Over the past few years, HCR has taken a number of steps to improve our interactions with New Yorkers including the development of Rent Connect, our new online tool to help tenans in rent regulated apartments quickly access the information they need. NYS Rent Connect simplifies and modemizes interaction with ORA for rent stabilized and rent controlled tenants and building owners. Additionally, tenants, owners, and their respective representatives can complete complaints or applications online. There are further updates in technology the agency is making internally that aid in reducing processing time. Moreover, the agency is hiring and promoting, staffers at unprecedented level to not only keep up with the atrtion rate. 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 thelr homes after filing complaints about serious conditions. ‘The 2019-20 enacted budget included a$17.7M increase forthe Office of Rent Administration to hire an additional 94 FTEs. Inthe four months since HSTPA was enacted, HCR has been working diligent to hire ditional staff in various ORA titles including but not limited to rent inspectors. DHCR has engaged the Dept. of Civil Service ‘assist with this tremendous task. 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 ean no longer be collected? Rent controlled tenants are not required to pay the fuel surcharge as of June 14th, 2019. HCR will send notices to building owners stating thatthe fuel pass-alongs can no longer be collected. (4 Linon A, Now Yor, NY 002 [oweSenator Liz Krueger December 2, 2019 Page 3 ‘The HSTPA lowers the rent increase eap 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 lense renewal. When is the eap lowered from 15% to 2% for rent controlled tenants given that they do not have lease renewals? Given that rent controled tenants do not receive renewal leases, the adjustment to 2% shall tke place on the first anniversary date of the MCI afer the effective date. For example, for an MCI order in rent control was issued May 15,2019 with 25 percent increase effective beginning June 1, 2019: The frst increase of 15% effective June 1, 2019 remains at 15%. However, effective June 1, 2020, the additional increases of 10% are phased in at 2% on June 1, 2020, 2% on June 1, 2021, 2% on June 1, 2022, 2% on June 1,2023 and 2% on June 1, 2025. 1 Capital Img ements (AIS) ‘When does HCR expect to publish the schedule of reasonable costs for MCIs and IAls requi HSTPA? Is the agency waiting to process new MCI applications until the schedule is published? sd by the ‘While the agency i unable to provide an exact date, HR is in the process of completing a request for proposals regarding a reasonable cost schedule for Major Capital Improvements. In the interim, HCR continues to process ‘MCI applications consistent with the current law. Will the old MCI laws and regulations, or the HSTPA, govern MCI applications submitted (but not approved) before June 14, 20197 HSTPA applies to all pending MCI applications. ‘Will the previous MCI laws, or the HSTPA, govern HCR’s processing of PARS related fo MCI applications after June 14, 20197 LHSTPA applies to all pending MCI applications with ORA at the RA level but not at PAR, which are appeals of orders issued before the effective date of HSPTA. HSTPA effective date provisions with respect to MCls gave DHCR a one-year period to implement its provisions with a directive that those that could be implemented immediately should be. Because the specific effective date language inthe MCI section is prospective, HSTPA will not be applied to MCI orders on PAR. ‘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 tenant representative can get the rent roll of the building to get that information. HCR will be engaging owners directly if they do not meet the MCI threshold. Tenants would be informed by an order issued by HCR Office of Rent Administration ‘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 LAT related work is completed by licensed contractors who have the required building permits? 14 Leagan Ave, Now Yok NY 10022 [ww aeraSenator Liz Krueger December 2, 2019 Page 4 HR will continue to request that owners who claim individual apartment improvements or major capital ‘improvements provide us with supported documents end specific documentation, which would include: 1. Cancelled check(s); 2. Invoice receipt marked paid in full contemporancous with the completion ofthe work; 3. Signed contract agreement; and 4. Contractor’ affidavit indicating thatthe installation was completed and pai in fall LHSTPA tenants who are concemed that work is being completed in thir building without proper permits should contact the local Department of Buildings. cof the HSTPA on P In eregulation and Overshar ‘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? All cases pending before the Rent Administrator will be dismissed. Cases that were approved pending a new lease after HSTPA wil be dismissed. Some cases are more complex and will quire additional consideration ‘The HSTPA extended the rent overcharge look-back period to six years (or as long as necessary to establish reliable base rent). Is HCR applying this longer look-back period (o rent overcharge complaints that ‘were filed but not decided before June 14, 2019? Does the longer look-back period apply to overcharge ceases currently under appeal at the agency? HCR is applying the HSTPA look back period to all overcharge cases curently pending at ORA. HICR looks forward to continuing to partner with the legislature and stakeholders to efficiently and effectively ‘implement HSTPA, Sincerely, a RuthAnne Visnauskas ‘Contmissioner/CEO 14 Leno Ae New Yor, HY 1022 Jw yea