A 8898: Requires an annual inspection and audit process which shall review five percent of individual apartment improvement notifications for rent stabilized apartments outside of the city of New York; requires additional audits where violations are found.

  
  STATE OF NEW YORK ________________________________________________________________________ 8898 2025-2026 Regular Sessions  IN ASSEMBLY June 12, 2025 ___________ Introduced by M. of A. BURROUGHS -- read once and referred to the Committee on Housing AN ACT to amend the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to audits of individual apartment improvements in rent regulated units The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (c) of section 10-b of section 4 of chapter 576 2 of the laws of 1974, constituting the emergency tenant protection act of 3 nineteen seventy-four, as added by section 6 of part K of chapter 36 of 4 the laws of 2019, is amended to read as follows: 5 (c) The division shall establish, for regulated units located in any 6 city having a population of less than one million, or a town or village, 7 for which an emergency has been declared pursuant to section three of 8 this act, an annual inspection and audit process which shall review five 9 percent of individual apartment improvement notifications pursuant to 10 this section and the rules and regulations of the division. Such process 11 shall include individual inspections and document review to ensure that 12 owners complied with all obligations and responsibilities under the law 13 for individual apartment improvements. Inspections shall include in-per- 14 son confirmation that such improvements have been completed in such way 15 as described in the notification. In the event an audit finds that the 16 recoverable costs claimed by the landlord cannot be substantiated, 17 the resulting overcharge shall be considered to be willful. 18 (d) The division shall issue a notice to the landlord and all the 19 tenants sixty days prior to the end of the temporary major capital 20 improvement increase and shall include the initial approved increase and 21 the total amount to be removed from the legal regulated rent inclusive 22 of any increases granted by the applicable rent guidelines board. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13107-03-5 
 A. 8898 2 1 § 2. Subdivision 3 of section 8-a of chapter 274 of the laws of 1946, 2 constituting the emergency housing rent control law is renumbered subdi- 3 vision 5 and two new subdivisions 3 and 4 are added to read as follows: 4 3. The division shall establish, for housing accommodations outside of 5 the city of New York, an annual inspection and audit process which shall 6 review five percent of individual apartment improvement notifications 7 pursuant to this section and the rules and regulations of the divi- 8 sion. Such process shall include individual inspections and document 9 review to ensure that owners complied with all obligations and 10 responsibilities under the law for individual apartment improvements. 11 Inspections shall include in-person confirmation that such improve- 12 ments have been completed in such way as described in the notification. 13 In the event an audit finds that the recoverable costs claimed by 14 the landlord cannot be substantiated, the resulting overcharge shall be 15 considered to be willful. 16 4. If the owner is found to have willfully overcharged a tenant as a 17 result of the conclusion of an audit pursuant to subdivision two or 18 three of this section, the division shall conduct additional audits of 19 all housing accommodations under their ownership in addition to the 20 penalties prescribed by this chapter. 21 § 3. Subdivision a of section 12 of section 4 of chapter 576 of the 22 laws of 1974, constituting the emergency tenant protection act of nine- 23 teen seventy-four, is amended by adding a new paragraph 1-a to read as 24 follows: 25 (1-a) If the owner is found to have willfully overcharged a tenant as 26 a result of the conclusion of an audit conducted pursuant to subdivision 27 (b) or (c) of section ten-b of this act, the division shall conduct 28 additional audits of all rent regulated units under their ownership in 29 addition to the penalties prescribed by this section. 30 § 4. This act shall take effect immediately.