] is old law to be omitted. LBD02896-01-3S. 2977 2 1 teen hundred sixty-eight through nineteen hundred seventy, or for the 2 first three years of operation if the building was completed since nine- 3 teen hundred sixty-eight or for the first three fiscal years after a 4 transfer of title to a new owner provided the new owner can establish to 5 the satisfaction of the commissioner that he or she acquired title to 6 the building as a result of a bona fide sale of the entire building and 7 that the new owner is unable to obtain requisite records for the fiscal 8 years nineteen hundred sixty-eight through nineteen hundred seventy 9 despite diligent efforts to obtain same from predecessors in title and 10 further provided that the new owner can provide financial data covering 11 a minimum of six years under his or her continuous and uninterrupted 12 operation of the building to meet the three year to three year compar- 13 ative test periods herein provided; and (b) as to completed building- 14 wide major capital improvements, for a finding that such improvements 15 are deemed depreciable under the Internal Revenue Code and that the cost 16 is to be amortized over a twelve-year period for a building with thir- 17 ty-five or fewer housing accommodations, or a twelve and one-half-year 18 period for a building with more than thirty-five housing accommodations, 19 for any determination issued by the division of housing and community 20 renewal after the effective date of the [the] chapter of the laws of two 21 thousand nineteen that amended this paragraph and shall be removed from 22 the legal regulated rent thirty years from the date the increase became 23 effective inclusive of any increases granted by the applicable rent 24 guidelines board. Temporary major capital improvement increases shall be 25 collectible prospectively on the first day of the first month beginning 26 sixty days from the date of mailing notice of approval to the tenant. 27 Such notice shall disclose the total monthly increase in rent and the 28 first month in which the tenant would be required to pay the temporary 29 increase. An approval for a temporary major capital improvement increase 30 shall not include retroactive payments. The collection of any increase 31 shall not exceed two percent in any year from the effective date of the 32 order granting the increase over the rent set forth in the schedule of 33 gross rents, with collectability of any dollar excess above said sum to 34 be spread forward in similar increments and added to the rent as estab- 35 lished or set in future years. Upon vacancy, the landlord may add any 36 remaining balance of the temporary major capital improvement increase to 37 the legal regulated rent. Notwithstanding any other provision of the 38 law, for any renewal lease commencing on or after June 14, 2019, the 39 collection of any rent increases due to any major capital improvements 40 approved on or after June 16, 2012 and before June 16, 2019 shall not 41 exceed two percent in any year for any tenant in occupancy on the date 42 the major capital improvement was approved or based upon cash purchase 43 price exclusive of interest or service charges. Where an application for 44 a temporary major capital improvement increase has been filed, a tenant 45 shall have sixty days from the date of mailing of a notice of a proceed- 46 ing in which to answer or reply. The state division of housing and 47 community renewal shall provide any responding tenant with the reasons 48 for the division's approval or denial of such application. Notwithstand- 49 ing anything to the contrary contained herein, no hardship increase 50 granted pursuant to this paragraph shall, when added to the annual gross 51 rents, as determined by the commissioner, exceed the sum of, (i) the 52 annual operating expenses, (ii) an allowance for management services as 53 determined by the commissioner, (iii) actual annual mortgage debt 54 service (interest and amortization) on its indebtedness to a lending 55 institution, an insurance company, a retirement fund or welfare fund 56 which is operated under the supervision of the banking or insurance lawsS. 2977 3 1 of the state of New York or the United States, and (iv) eight and one- 2 half percent of that portion of the fair market value of the property 3 which exceeds the unpaid principal amount of the mortgage indebtedness 4 referred to in subparagraph (iii) of this paragraph. Fair market value 5 for the purposes of this paragraph shall be six times the annual gross 6 rent. The collection of any increase in the stabilized rent for any 7 apartment pursuant to this paragraph shall not exceed six percent in any 8 year from the effective date of the order granting the increase over the 9 rent set forth in the schedule of gross rents, with collectability of 10 any dollar excess above said sum to be spread forward in similar incre- 11 ments and added to the stabilized rent as established or set in future 12 years. No increase for major capital improvements shall be granted to 13 any landlord or property owner, unless an application including all 14 necessary documentation is submitted within one hundred twenty days 15 after the completion of the new installation or improvement or improve- 16 ments; 17 § 3. Subdivision b of section 4 of section 4 of chapter 576 of the 18 laws of 1974, constituting the emergency tenant protection act of nine- 19 teen seventy-four, is amended by adding a new paragraph 4 to read as 20 follows: 21 (4) no increase for major capital improvements shall be granted to any 22 landlord or property owner, unless an application including all neces- 23 sary documentation is submitted within one hundred twenty days after the 24 completion of the new installation or improvement or improvements; 25 § 4. Subparagraph 7 of the second undesignated paragraph of paragraph 26 (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, 27 constituting the emergency housing rent control law, as separately 28 amended by section 25 of part Q of chapter 39 and section 14 of part K 29 of chapter 36 of the laws of 2019, is amended to read as follows: 30 (7) there has been since March first, nineteen hundred fifty, a major 31 capital improvement essential for the preservation, energy efficiency, 32 functionality, or infrastructure of the entire building, improvement of 33 the structure including heating, windows, plumbing and roofing, but 34 shall not be for operational costs or unnecessary cosmetic improvements; 35 which for any order of the commissioner issued after the effective date 36 of the chapter of the laws of two thousand nineteen that amended this 37 paragraph the cost of such improvement shall be amortized over a twelve- 38 year period for buildings with thirty-five or fewer units or a twelve 39 and one-half year period for buildings with more than thirty-five units, 40 and shall be removed from the legal regulated rent thirty years from the 41 date the increase became effective inclusive of any increases granted by 42 the applicable rent guidelines board. Temporary major capital improve- 43 ment increases shall be collectible prospectively on the first day of 44 the first month beginning sixty days from the date of mailing notice of 45 approval to the tenant. Such notice shall disclose the total monthly 46 increase in rent and the first month in which the tenant would be 47 required to pay the temporary increase. An approval for a temporary 48 major capital improvement increase shall not include retroactive 49 payments. The collection of any increase shall not exceed two percent in 50 any year from the effective date of the order granting the increase over 51 the rent set forth in the schedule of gross rents, with collectability 52 of any dollar excess above said sum to be spread forward in similar 53 increments and added to the rent as established or set in future years. 54 Upon vacancy, the landlord may add any remaining balance of the tempo- 55 rary major capital improvement increase to the legal regulated rent. 56 Notwithstanding any other provision of the law, for any renewal leaseS. 2977 4 1 commencing on or after June 14, 2019, the collection of any rent 2 increases due to any major capital improvements approved on or after 3 June 16, 2012 and before June 16, 2019 shall not exceed two percent in 4 any year for any tenant in occupancy on the date the major capital 5 improvement was approved; provided, however, where an application for a 6 temporary major capital improvement increase has been filed, a tenant 7 shall have sixty days from the date of mailing of a notice of a proceed- 8 ing in which to answer or reply. The state division of housing and 9 community renewal shall provide any responding tenant with the reasons 10 for the division's approval or denial of such application. No increase 11 for major capital improvements shall be granted to any landlord or prop- 12 erty owner, unless an application including all necessary documentation 13 is submitted within one hundred twenty days after the completion of the 14 new installation or improvement or improvements; or 15 § 5. This act shall take effect immediately; provided that: 16 a. the amendments to section 26-405 of the city rent and rehabili- 17 tation law made by section one of this act shall remain in full force 18 and effect only as long as the public emergency requiring the regulation 19 and control of residential rents and evictions continues, as provided in 20 subdivision 3 of section 1 of the local emergency housing rent control 21 act; and 22 b. the amendments to section 26-511 of the administrative code of the 23 city of New York made by section two of this act shall not affect the 24 expiration of such section and shall be deemed to expire therewith.