NY State Assembly Bill 2019-A5251A

Assembly Bill A5251A

2019-2020 Legislative Session

Relates to investigation of rent overcharge complaints in rent regulated housing accommodations

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to housing
Apr 08, 2019	print number 5251a
Apr 08, 2019	amend (t) and recommit to housing
Feb 08, 2019	referred to housing

Bill Amendments

Original

A (Active)

co-Sponsors

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multi-Sponsors

2019-A5251 - Details

See Senate Version of this Bill:: S4169
Current Committee:: Assembly Housing
Law Section:: New York City Administrative Code
Laws Affected:: Amd §12, Emerg Ten Prot Act of 1974; amd §26-516, NYC Ad Cd; amd §213-a, CPLR

2019-A5251 - Summary

Permits the division of housing and community renewal to investigate rent overcharge complaints in rent regulated housing accommodations by reviewing all rent history beyond four years' prior records as needed.

2019-A5251 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5251
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2019
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Housing
 
 AN  ACT to amend the administrative code of the city of New York and the
   emergency tenant protection act of nineteen seventy-four, in  relation
   to investigation of rent overcharge complaints

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision a of section 12 of section 4  of
 chapter  576  of  the  laws  of  1974, constituting the emergency tenant
 protection act of nineteen seventy-four, as amended by  chapter  403  of
 the  laws  of 1983, the opening paragraph and clause (i) of subparagraph
 (b) as amended by chapter 116 of the laws of 1997, is amended to read as
 follows:
   (1) Subject to the conditions and limitations of this  paragraph,  any
 owner  of  housing  accommodations in a city having a population of less
 than one million or a town or village as to which an emergency has  been
 declared  pursuant  to section three, who, upon complaint of a tenant or
 of the state division of housing and community renewal, is found by  the
 state  division  of  housing  and  community renewal, after a reasonable
 opportunity to be heard, to have collected an overcharge above the  rent
 authorized  for  a  housing  accommodation  subject to this act shall be
 liable to the tenant for a penalty equal to three times  the  amount  of
 such  overcharge.  In  no  event  shall  such  treble  damage penalty be
 assessed against an owner based solely on said owner's failure to file a
 proper or timely initial or annual rent registration statement.  If  the
 owner establishes by a preponderance of the evidence that the overcharge
 was  neither willful nor attributable to his negligence, the state divi-
 sion of housing and community renewal shall establish the penalty as the
 amount of the overcharge plus interest at the rate of  interest  payable
 on  a judgment pursuant to section five thousand four of the civil prac-
 tice law and rules. (i) Except as to complaints filed pursuant to clause
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06209-01-9

 A. 5251                             2
 
 (ii) of this paragraph, the legal regulated rent for purposes of  deter-
 mining  an overcharge, shall be deemed to be the rent indicated in [the]
 PRIOR annual registration [statement filed four years prior to the  most
 recent  registration statement, (or, if more recently filed, the initial
 registration statement)] STATEMENTS plus in  each  case  any  subsequent
 lawful increases and adjustments, LESS ANY APPROPRIATE PENALTIES. [Where
 the  amount  of rent set forth in the annual rent registration statement
 filed four years prior to the most recent registration statement is  not
 challenged  within  four  years  of  its  filing,  neither such rent nor
 service of any registration shall be subject to challenge  at  any  time
 thereafter.]  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, IN INVESTI-
 GATING COMPLAINTS OF OVERCHARGE AND IN DETERMINING LEGAL REGULATED RENT,
 SHALL CONSIDER ALL AVAILABLE RENT HISTORY WHICH IS REASONABLY  NECESSARY
 TO  MAKE  SUCH DETERMINATIONS. (ii) As to complaints filed within ninety
 days of the initial registration of a housing accommodation,  the  legal
 regulated rent for purposes of determining an overcharge shall be deemed
 to  be the rent charged [on the date four years prior to] AS OF the date
 of the initial registration of the housing  accommodation  (or,  if  the
 housing  accommodation  was NOT PREVIOUSLY subject to this act [for less
 than four years], the initial legal regulated rent) plus in  each  case,
 any  lawful  increases  and adjustments, LESS ANY APPROPRIATE PENALTIES.
 Where the rent charged [on the date four years] prior to the date of the
 initial registration of the accommodation cannot  be  established,  such
 rent shall be established by the division. [Where the amount of rent set
 forth  in  the annual rent registration statement filed four years prior
 to the most recent registration statement is not challenged within  four
 years  of  its filing, neither such rent nor service of any registration
 shall be subject to challenge at any time thereafter.]
   (a) The order of the state division of housing and  community  renewal
 shall  apportion  the  owner's  liability  between  or among two or more
 tenants found to have  been  overcharged  by  such  owner  during  their
 particular tenancy of a unit.
   (b)  (i)  Except  as  provided  under  clauses  (ii) and (iii) of this
 subparagraph, a complaint under this subdivision [shall]  MAY  be  filed
 with  the  state  division of housing and community renewal [within four
 years of the first overcharge alleged and no determination of  an  over-
 charge and no award or calculation of an award of the amount of an over-
 charge  may  be  based upon an overcharge having occurred more than four
 years before the complaint is filed. This paragraph shall preclude exam-
 ination of the rental history of the housing accommodation prior to  the
 four-year  period  preceding  the filing of a complaint pursuant to this
 subdivision] AT ANY TIME.
   (ii) [No] A penalty of three times the overcharge may be based upon an
 overcharge having occurred [more than two years] AT ANY TIME before  the
 complaint  is filed [or upon an overcharge which occurred prior to April
 first, nineteen hundred eighty-four.
   (iii) Any complaint based upon overcharges occurring prior to the date
 of filing of the initial rent registration as provided in subdivision  b
 of section twelve-a of this act shall be filed within ninety days of the
 mailing of notice to the tenant of such registration].
   (c)  Any affected tenant shall be notified of and given an opportunity
 to join in any complaint filed by an officer or employee  of  the  state
 division of housing and community renewal.
   (d)  An  owner  found  to  have  overcharged  shall,  in all cases, be
 assessed the reasonable costs and attorney's fees of the proceeding, and
 interest from the date of the overcharge at the rate of interest payable

 A. 5251                             3
 
 on a judgment pursuant to section five thousand four of the civil  prac-
 tice law and rules.
   (e)  The  order of the state division of housing and community renewal
 awarding penalties may, upon the expiration of the period in  which  the
 owner  may  institute  a proceeding pursuant to article seventy-eight of
 the civil practice law and rules, be filed and enforced by a  tenant  in
 the  same  manner as a judgment or, in the alternative, not in excess of
 twenty percent thereof per month may be offset against any  rent  there-
 after due the owner.
   (f)  Unless  a  tenant shall have filed a complaint of overcharge with
 the division which complaint has not been withdrawn,  nothing  contained
 in this section shall be deemed to prevent a tenant or tenants, claiming
 to  have  been  overcharged,  from commencing an action or interposing a
 counterclaim in a court of competent jurisdiction for damages  equal  to
 the  overcharge  and the penalty provided for in this section, including
 interest from the date of the overcharge at the rate of interest payable
 on a judgment pursuant to section five thousand four of the civil  prac-
 tice law and rules, plus the statutory costs and allowable disbursements
 in  connection  with  the  proceeding. [Such action must be commenced or
 counterclaim interposed within four years of the  date  of  the  alleged
 overcharge  but  no recovery of three times the amount of the overcharge
 may be awarded with respect to any overcharge which  had  occurred  more
 than  two years before the action is commenced or counterclaim is inter-
 posed.]
   § 2. Subdivision a of section 26-516 of the administrative code of the
 city of New York, as amended by chapter 116 of  the  laws  of  1997,  is
 amended to read as follows:
   a.  Subject to the conditions and limitations of this subdivision, any
 owner of housing accommodations who, upon complaint of a tenant,  or  of
 the  state  division  of  housing and community renewal, is found by the
 state division of housing and  community  renewal,  after  a  reasonable
 opportunity  to be heard, to have collected an overcharge above the rent
 authorized for a housing accommodation subject to this chapter shall  be
 liable  to  the  tenant for a penalty equal to three times the amount of
 such overcharge. In  no  event  shall  such  treble  damage  penalty  be
 assessed against an owner based solely on said owner's failure to file a
 timely  or  proper initial or annual rent registration statement. If the
 owner establishes by a preponderance of the evidence that the overcharge
 was not willful, the state division of  housing  and  community  renewal
 shall  establish the penalty as the amount of the overcharge plus inter-
 est. (i) Except as to complaints filed pursuant to clause (ii)  of  this
 paragraph, the legal regulated rent for purposes of determining an over-
 charge,  shall  be  the  AMOUNT  OF rent indicated in [the] PRIOR annual
 registration [statement filed four years prior to the most recent regis-
 tration statement, (or, if more recently filed, the initial registration
 statement)] STATEMENTS plus in each case any subsequent lawful increases
 and adjustments, LESS ANY APPROPRIATE PENALTIES. [Where  the  amount  of
 rent  set  forth  in  the  annual rent registration statement filed four
 years prior to the most recent registration statement is not  challenged
 within  four  years  of its filing, neither such rent nor service of any
 registration shall be subject to challenge at any time thereafter.]  THE
 DIVISION  OF  HOUSING AND COMMUNITY RENEWAL, IN INVESTIGATING COMPLAINTS
 OF OVERCHARGE AND IN DETERMINING LEGAL REGULATED  RENT,  SHALL  CONSIDER
 ALL  AVAILABLE  RENT  HISTORY WHICH IS REASONABLY NECESSARY TO MAKE SUCH
 DETERMINATIONS. (ii) As to complaints filed within ninety  days  of  the
 initial  registration  of  a  housing accommodation, the legal regulated

 A. 5251                             4
 
 rent shall be deemed to be the rent charged  [on  the  date  four  years
 prior  to]  AS  OF  the  date of the initial registration of the housing
 accommodation (or, if  the  housing  accommodation  was  NOT  PREVIOUSLY
 subject  to  this  chapter [for less than four years], the initial legal
 regulated rent) plus in each case, any lawful increases and adjustments,
 LESS ANY APPROPRIATE PENALTIES. Where the rent charged [on the date four
 years prior to] AS OF the date of the initial registration of the accom-
 modation cannot be established, such rent shall be  established  by  the
 division.
   Where the PRIOR rent charged [on the date four years prior to the date
 of  initial  registration  of]  FOR  the housing accommodation cannot be
 established, such rent shall be established  by  the  division  provided
 that  where  a rent is established based on rentals determined under the
 provisions of the local emergency housing rent  control  act  such  rent
 must be adjusted to account for no less than the minimum increases which
 would  be  permitted if the housing accommodation were covered under the
 provisions of this chapter, LESS ANY APPROPRIATE PENALTIES.  [Where  the
 amount of rent set forth in the annual rent registration statement filed
 four  years prior to the most recent registration statement is not chal-
 lenged within four years of its filing, neither such rent nor service of
 any registration shall be subject to challenge at any time thereafter.]
   (1) The order of the state division of housing and  community  renewal
 shall  apportion  the  owner's  liability  between  or among two or more
 tenants found to have  been  overcharged  by  such  owner  during  their
 particular tenancy of a unit.
   (2) Except as provided under clauses (i) and (ii) of this paragraph, a
 complaint  under  this  subdivision  [shall] MAY be filed with the state
 division of housing and community renewal  [within  four  years  of  the
 first  overcharge  alleged  and no determination of an overcharge and no
 award or calculation of an award of the amount of an overcharge  may  be
 based upon an overcharge having occurred more than four years before the
 complaint  is  filed] AT ANY TIME. (i) [No] A penalty of three times the
 overcharge may be based upon an overcharge having  occurred  [more  than
 two  years]  AT ANY TIME before the complaint is filed [or upon an over-
 charge which occurred prior to April  first,  nineteen  hundred  eighty-
 four.  (ii)  Any complaint based upon overcharges occurring prior to the
 date of filing of the initial rent registration as provided  in  section
 26-517  of this chapter shall be filed within ninety days of the mailing
 of notice to the tenant  of  such  registration.  This  paragraph  shall
 preclude  examination of the rental history of the housing accommodation
 prior to the four-year period preceding the filing of a complaint pursu-
 ant to this subdivision].
   (3) Any affected tenant shall be notified of and given an  opportunity
 to  join  in  any complaint filed by an officer or employee of the state
 division of housing and community renewal.
   (4) An owner found to have overcharged may be assessed the  reasonable
 costs  and  attorney's fees of the proceeding and interest from the date
 of the overcharge at the rate of interest payable on a judgment pursuant
 to section five thousand four of the civil practice law and rules.
   (5) The order of the state division of housing and  community  renewal
 awarding  penalties  may, upon the expiration of the period in which the
 owner may institute a proceeding pursuant to  article  seventy-eight  of
 the  civil  practice law and rules, be filed and enforced by a tenant in
 the same manner as a judgment or not in excess of twenty percent thereof
 per month may be offset against any rent thereafter due the owner.
   § 3. This act shall take effect immediately; provided that:

 A. 5251                             5
 
   a. the amendments to paragraph 1 of subdivision a of section 12 of the
 emergency tenant protection act of nineteen seventy-four made by section
 one of this act shall expire on the same date as such  act  expires  and
 shall not affect the expiration of such act as provided in section 17 of
 chapter 567 of the laws of 1974; and
   b.  the  amendments  to section 26-516 of chapter 4 of title 26 of the
 administrative code of the city of New York made by section two of  this
 act  shall  expire  on  the  same date as such law expires and shall not
 affect the expiration of such law as provided under  section  26-520  of
 such law.

co-Sponsors

View additional co-sponsors

multi-Sponsors

2019-A5251A (ACTIVE) - Details

See Senate Version of this Bill:: S4169
Current Committee:: Assembly Housing
Law Section:: New York City Administrative Code
Laws Affected:: Amd §12, Emerg Ten Prot Act of 1974; amd §26-516, NYC Ad Cd; amd §213-a, CPLR

2019-A5251A (ACTIVE) - Summary

2019-A5251A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5251--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2019
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ, REYES, TAYLOR, COLTON, JAFFEE, GOTT-
   FRIED, EPSTEIN, SIMON, D'URSO, ARROYO, BLAKE, DE LA ROSA, NIOU, GLICK,
   CRUZ, BARNWELL, M. G. MILLER, HUNTER, MOSLEY, PICHARDO, DAVILA,  RICH-
   ARDSON,  L. ROSENTHAL,  FERNANDEZ,  FRONTUS, BICHOTTE, CARROLL, ORTIZ,
   BARRON, WILLIAMS, PERRY, SEAWRIGHT -- Multi-Sponsored by -- M.  of  A.
   COOK,  NOLAN  -- read once and referred to the Committee on Housing --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to  amend  the administrative code of the city of New York, the
   emergency tenant protection act of nineteen seventy-four and the civil
   practice law and rules, in relation to  investigation  of  rent  over-
   charge complaints
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision a of section 12 of section 4  of
 chapter  576  of  the  laws  of  1974, constituting the emergency tenant
 protection act of nineteen seventy-four, as amended by  chapter  403  of
 the  laws  of 1983, the opening paragraph and clause (i) of subparagraph
 (b) as amended by chapter 116 of the laws of 1997, is amended to read as
 follows:
   (1) Subject to the conditions and limitations of this  paragraph,  any
 owner  of  housing  accommodations in a city having a population of less
 than one million or a town or village as to which an emergency has  been
 declared  pursuant  to section three, who, upon complaint of a tenant or
 of the state division of housing and community renewal, is found by  the
 state  division  of  housing  and  community renewal, after a reasonable
 opportunity to be heard, to have collected an overcharge above the  rent
 authorized  for  a  housing  accommodation  subject to this act shall be
 liable to the tenant for a penalty equal to three times  the  amount  of
 such  overcharge.  [In  no  event  shall  such  treble damage penalty be
 assessed against an owner based solely on said owner's failure to file a

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06209-08-9

 A. 5251--A                          2

 proper or timely initial or annual rent registration statement.] If  the
 owner establishes by a preponderance of the evidence that the overcharge
 was  neither willful nor attributable to his negligence, the state divi-
 sion of housing and community renewal shall establish the penalty as the
 amount  of  the overcharge plus interest at the rate of interest payable
 on a judgment pursuant to section five thousand four of the civil  prac-
 tice  law and rules. AFTER A COMPLAINT OF RENT OVERCHARGE HAS BEEN FILED
 AND SERVED ON AN OWNER, THE VOLUNTARY ADJUSTMENT OF THE RENT AND/OR  THE
 VOLUNTARY TENDER OF A REFUND OF RENT OVERCHARGES SHALL NOT BE CONSIDERED
 BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OR A COURT OF COMPETENT
 JURISDICTION AS EVIDENCE THAT THE OVERCHARGE WAS NOT WILLFUL. (i) Except
 as  to  complaints  filed pursuant to clause (ii) of this paragraph, the
 legal regulated rent for purposes of determining an overcharge, shall be
 deemed to be the rent indicated  in  the  MOST  RECENT  RELIABLE  annual
 registration  statement  FOR  A  RENT STABILIZED TENANT filed [four] AND
 SERVED UPON THE TENANT SIX OR MORE years prior to the most recent regis-
 tration statement, (or, if more recently filed, the initial registration
 statement) plus in each case any subsequent lawful increases and adjust-
 ments. [Where the amount of rent set forth in the annual rent  registra-
 tion  statement  filed  four years prior to the most recent registration
 statement is not challenged within four years  of  its  filing,  neither
 such  rent nor service of any registration shall be subject to challenge
 at any time thereafter.] THE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL
 OR  A  COURT  OF  COMPETENT JURISDICTION, IN INVESTIGATING COMPLAINTS OF
 OVERCHARGE AND IN DETERMINING LEGAL REGULATED RENT, SHALL  CONSIDER  ALL
 AVAILABLE RENT HISTORY WHICH IS REASONABLY NECESSARY TO MAKE SUCH DETER-
 MINATIONS. (ii) As to complaints filed within ninety days of the initial
 registration  of  a  housing accommodation, the legal regulated rent for
 purposes of determining an overcharge shall be deemed  to  be  the  rent
 charged  on  the  date [four] SIX years prior to the date of the initial
 registration of the housing accommodation (or, if the  housing  accommo-
 dation  was  subject  to  this  act  for less than [four] SIX years, the
 initial legal regulated rent) plus in each case,  any  lawful  increases
 and  adjustments.  Where  the  rent charged on the date [four] SIX years
 prior to the date of  the  initial  registration  of  the  accommodation
 cannot  be  established, such rent shall be established by the division.
 [Where the amount of rent set forth  in  the  annual  rent  registration
 statement  filed four years prior to the most recent registration state-
 ment is not challenged within four years of  its  filing,  neither  such
 rent  nor  service  of any registration shall be subject to challenge at
 any time thereafter.]
   (a) The order of the state division of housing and  community  renewal
 shall  apportion  the  owner's  liability  between  or among two or more
 tenants found to have  been  overcharged  by  such  owner  during  their
 particular tenancy of a unit.
   (b)  (i)  Except  as  provided  under  clauses  (ii) and (iii) of this
 subparagraph, a complaint under this subdivision [shall]  MAY  be  filed
 with  the  state  division of housing and community renewal [within four
 years of the first overcharge alleged and no determination of  an  over-
 charge and no award or calculation of an award of the amount of an over-
 charge  may  be  based upon an overcharge having occurred more than four
 years before the complaint is filed. This paragraph shall preclude exam-
 ination of the rental history of the housing accommodation prior to  the
 four-year  period  preceding  the filing of a complaint pursuant to this
 subdivision] IN A COURT OF COMPETENT JURISDICTION AT ANY  TIME,  HOWEVER

 A. 5251--A                          3
 
 ANY  RECOVERY  OF OVERCHARGE PENALTIES SHALL BE LIMITED TO THE SIX YEARS
 PRECEDING THE COMPLAINT.
   (ii)  [No]  A penalty of three times the overcharge [may be based upon
 an overcharge having occurred more than two years before  the  complaint
 is  filed  or  upon  an  overcharge which occurred prior to April first,
 nineteen hundred eighty-four]SHALL  BE  ASSESSED  UPON  ALL  OVERCHARGES
 WILLFULLY COLLECTED BY THE OWNER STARTING SIX YEARS BEFORE THE COMPLAINT
 IS FILED.
   (iii) Any complaint based upon overcharges occurring prior to the date
 of  filing of the initial rent registration as provided in subdivision b
 of section twelve-a of this act shall be filed within ninety days of the
 mailing of notice to the tenant of such registration.
   (c) Any affected tenant shall be notified of and given an  opportunity
 to  join  in  any complaint filed by an officer or employee of the state
 division of housing and community renewal.
   (d) An owner found  to  have  overcharged  shall,  in  all  cases,  be
 assessed the reasonable costs and attorney's fees of the proceeding, and
 interest from the date of the overcharge at the rate of interest payable
 on  a judgment pursuant to section five thousand four of the civil prac-
 tice law and rules.
   (e) The order of the state division of housing and  community  renewal
 awarding  penalties  may, upon the expiration of the period in which the
 owner may institute a proceeding pursuant to  article  seventy-eight  of
 the  civil  practice law and rules, be filed and enforced by a tenant in
 the same manner as a judgment or, in the alternative, not in  excess  of
 twenty  percent  thereof per month may be offset against any rent there-
 after due the owner.
   (f) Unless a tenant shall have filed a complaint  of  overcharge  with
 the  division  which complaint has not been withdrawn, nothing contained
 in this section shall be deemed to prevent a tenant or tenants, claiming
 to have been overcharged, from commencing an  action  or  interposing  a
 counterclaim  in  a court of competent jurisdiction for damages equal to
 the overcharge and the penalty provided for in this  section,  including
 interest from the date of the overcharge at the rate of interest payable
 on  a judgment pursuant to section five thousand four of the civil prac-
 tice law and rules, plus the statutory costs and allowable disbursements
 in connection with the proceeding. [Such action  must  be  commenced  or
 counterclaim  interposed  within  four  years of the date of the alleged
 overcharge but no recovery of three times the amount of  the  overcharge
 may  be  awarded  with respect to any overcharge which had occurred more
 than two years before the action is commenced or counterclaim is  inter-
 posed.]  THE COURTS AND THE DIVISION SHALL HAVE CONCURRENT JURISDICTION,
 SUBJECT TO THE TENANT'S CHOICE OF FORUM.
   § 2. Paragraph 8 of subdivision a of section 12 of section 4 of  chap-
 ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
 protection act of nineteen seventy-four, as amended by  chapter  403  of
 the  laws  of 1983, is amended and a new paragraph 9 is added to read as
 follows:
   (8) [Any] EXCEPT WHERE A SPECIFIC PROVISION OF THIS LAW  REQUIRES  THE
 MAINTENANCE  OF  RENT  RECORDS FOR A LONGER PERIOD, INCLUDING RECORDS OF
 THE USEFUL LIFE OF IMPROVEMENTS MADE TO ANY HOUSING ACCOMMODATION OR ANY
 BUILDING, ANY owner who has  duly  registered  a  housing  accommodation
 pursuant  to section twelve-a of this act shall not be required to main-
 tain or produce any records relating to rentals  of  such  accommodation
 more  than  four  years  prior to the most recent registration or annual
 statement for such accommodation.  HOWEVER, AN OWNER'S ELECTION  NOT  TO

 A. 5251--A                          4
 
 MAINTAIN  RECORDS SHALL NOT LIMIT THE AUTHORITY OF THE DIVISION OF HOUS-
 ING AND COMMUNITY RENEWAL AND THE COURTS TO EXAMINE THE  RENTAL  HISTORY
 AND DETERMINE LEGAL REGULATED RENTS PURSUANT TO THIS SUBDIVISION.
   (9)  THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE COURTS, IN
 INVESTIGATING COMPLAINTS OF OVERCHARGE AND IN  DETERMINING  LEGAL  REGU-
 LATED  RENTS, SHALL CONSIDER ALL AVAILABLE RENT HISTORY WHICH IS REASON-
 ABLY NECESSARY TO MAKE SUCH DETERMINATIONS, INCLUDING BUT NOT LIMITED TO
 (A) ANY RENT REGISTRATION OR OTHER RECORDS FILED WITH THE STATE DIVISION
 OF HOUSING AND COMMUNITY RENEWAL,  OR  ANY  OTHER  STATE,  MUNICIPAL  OR
 FEDERAL  AGENCY, REGARDLESS OF THE DATE TO WHICH THE INFORMATION ON SUCH
 REGISTRATION REFERS; (B) ANY ORDER ISSUED BY  ANY  STATE,  MUNICIPAL  OR
 FEDERAL  AGENCY; (C) ANY RECORDS MAINTAINED BY THE OWNER OR TENANTS; AND
 (D) ANY PUBLIC RECORD KEPT IN THE REGULAR  COURSE  OF  BUSINESS  BY  ANY
 STATE,  MUNICIPAL OR FEDERAL AGENCY. NOTHING CONTAINED IN THIS PARAGRAPH
 SHALL LIMIT THE EXAMINATION OF RENT HISTORY RELEVANT TO A  DETERMINATION
 AS TO:
   (I)  WHETHER  THE LEGALITY OF A RENTAL AMOUNT CHARGED OR REGISTERED IS
 RELIABLE IN LIGHT OF ALL AVAILABLE EVIDENCE INCLUDING, BUT  NOT  LIMITED
 TO, WHETHER AN UNEXPLAINED INCREASE IN THE REGISTERED OR LEASE RENTS, OR
 A  FRAUDULENT  SCHEME TO DESTABILIZE THE HOUSING ACCOMMODATION, RENDERED
 SUCH RENT OR REGISTRATION UNRELIABLE;
   (II) WHETHER AN ACCOMMODATION  IS  SUBJECT  TO  THE  EMERGENCY  TENANT
 PROTECTION ACT;
   (III) WHETHER AN ORDER ISSUED BY THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL OR A COURT OF COMPETENT JURISDICTION, INCLUDING, BUT NOT LIMITED
 TO AN ORDER ISSUED PURSUANT TO SECTION 26-514 OF THE ADMINISTRATIVE CODE
 OF  THE  CITY OF NEW YORK, OR ANY REGULATORY AGREEMENT OR OTHER CONTRACT
 WITH ANY GOVERNMENTAL AGENCY, AND REMAINING IN EFFECT WITHIN  SIX  YEARS
 OF THE FILING OF A COMPLAINT PURSUANT TO THIS SECTION, AFFECTS OR LIMITS
 THE AMOUNT OF RENT THAT MAY BE CHARGED OR COLLECTED;
   (IV) WHETHER AN OVERCHARGE WAS OR WAS NOT WILLFUL;
   (V)  WHETHER A RENT ADJUSTMENT THAT REQUIRES INFORMATION REGARDING THE
 LENGTH OF OCCUPANCY BY A PRESENT OR PRIOR TENANT WAS LAWFUL;
   (VI) THE EXISTENCE OR TERMS AND CONDITIONS OF A PREFERENTIAL RENT,  OR
 THE  PROPRIETY  OF  A  LEGAL  REGISTERED  RENT  DURING A PERIOD WHEN THE
 TENANTS WERE CHARGED A PREFERENTIAL RENT;
   (VII) THE LEGALITY OF A RENT CHARGED OR REGISTERED  IMMEDIATELY  PRIOR
 TO THE REGISTRATION OF A PREFERENTIAL RENT; OR
   (VIII)  THE AMOUNT OF THE LEGAL REGULATED RENT WHERE THE APARTMENT WAS
 VACANT OR TEMPORARILY EXEMPT ON THE DATE SIX YEARS PRIOR TO  A  TENANT'S
 COMPLAINT.
   §  3.  Subdivision  b of section 12 of section 4 of chapter 576 of the
 laws of 1974, constituting the emergency tenant protection act of  nine-
 teen  seventy-four,  as  amended  by chapter 403 of the laws of 1983, is
 amended to read as follows:
   b. Within a city having a population of one million or more, the state
 division of housing and community renewal  shall  have  such  powers  to
 enforce this act as shall be provided in the New York city rent stabili-
 zation  law  of  nineteen  hundred  sixty-nine,  as amended, or as shall
 otherwise be provided by law.   UNLESS  A  TENANT  SHALL  HAVE  FILED  A
 COMPLAINT  OF  OVERCHARGE WITH THE DIVISION WHICH COMPLAINT HAS NOT BEEN
 WITHDRAWN, NOTHING CONTAINED IN THIS SECTION SHALL BE DEEMED TO  PREVENT
 A  TENANT OR TENANTS, CLAIMING TO HAVE BEEN OVERCHARGED, FROM COMMENCING
 AN ACTION OR INTERPOSING A COUNTERCLAIM IN A COURT OF  COMPETENT  JURIS-
 DICTION FOR DAMAGES EQUAL TO THE OVERCHARGE AND THE PENALTY PROVIDED FOR
 IN  THIS  SECTION, INCLUDING INTEREST FROM THE DATE OF THE OVERCHARGE AT

 A. 5251--A                          5
 
 THE RATE OF INTEREST PAYABLE ON A  JUDGMENT  PURSUANT  TO  SECTION  FIVE
 THOUSAND  FOUR  OF  THE CIVIL PRACTICE LAW AND RULES, PLUS THE STATUTORY
 COSTS AND ALLOWABLE DISBURSEMENTS IN CONNECTION WITH THE PROCEEDING. THE
 COURTS  AND  THE DIVISION SHALL HAVE CONCURRENT JURISDICTION, SUBJECT TO
 THE TENANT'S CHOICE OF FORUM.
   § 4. Subdivision a of section 26-516 of the administrative code of the
 city of New York, as amended by chapter 116 of  the  laws  of  1997,  is
 amended to read as follows:
   a.  Subject to the conditions and limitations of this subdivision, any
 owner of housing accommodations who, upon complaint of a tenant,  or  of
 the  state  division  of  housing and community renewal, is found by the
 state division of housing and  community  renewal,  after  a  reasonable
 opportunity  to be heard, to have collected an overcharge above the rent
 authorized for a housing accommodation subject to this chapter shall  be
 liable  to  the  tenant for a penalty equal to three times the amount of
 such overcharge. [In no  event  shall  such  treble  damage  penalty  be
 assessed against an owner based solely on said owner's failure to file a
 timely  or proper initial or annual rent registration statement.] If the
 owner establishes by a preponderance of the evidence that the overcharge
 was not willful, the state division of  housing  and  community  renewal
 shall  establish the penalty as the amount of the overcharge plus inter-
 est.  AFTER A COMPLAINT OF RENT OVERCHARGE HAS BEEN FILED AND SERVED  ON
 AN  OWNER,  THE  VOLUNTARY  ADJUSTMENT  OF THE RENT AND/OR THE VOLUNTARY
 TENDER OF A REFUND OF RENT OVERCHARGES SHALL NOT BE  CONSIDERED  BY  THE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL OR A COURT OF COMPETENT JURIS-
 DICTION  AS  EVIDENCE THAT THE OVERCHARGE WAS NOT WILLFUL. (i) Except as
 to complaints filed pursuant to clause (ii) of this paragraph, the legal
 regulated rent for purposes of determining an overcharge, shall  be  the
 rent indicated in the MOST RECENT RELIABLE annual registration statement
 filed  [four]  AND SERVED UPON THE TENANT SIX OR MORE years prior to the
 most recent registration statement, (or, if  more  recently  filed,  the
 initial  registration statement) plus in each case any subsequent lawful
 increases and adjustments. [Where the amount of rent set  forth  in  the
 annual  rent  registration  statement filed four years prior to the most
 recent registration statement is not challenged within four years of its
 filing, neither such rent nor  service  of  any  registration  shall  be
 subject  to  challenge  at any time thereafter.] THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL OR A COURT OF COMPETENT JURISDICTION, IN  INVESTI-
 GATING COMPLAINTS OF OVERCHARGE AND IN DETERMINING LEGAL REGULATED RENT,
 SHALL  CONSIDER ALL AVAILABLE RENT HISTORY WHICH IS REASONABLY NECESSARY
 TO MAKE SUCH DETERMINATIONS. (ii) As to complaints filed  within  ninety
 days  of  the initial registration of a housing accommodation, the legal
 regulated rent shall be deemed to be the rent charged on the date [four]
 SIX years prior to the date of the initial registration of  the  housing
 accommodation  (or,  if  the  housing  accommodation was subject to this
 chapter for less than [four] SIX  years,  the  initial  legal  regulated
 rent) plus in each case, any lawful increases and adjustments. Where the
 rent  charged  on  the  date  [four]  SIX years prior to the date of the
 initial registration of the accommodation cannot  be  established,  such
 rent shall be established by the division.
   Where the PRIOR rent charged [on the date four years prior to the date
 of  initial  registration  of]  FOR  the housing accommodation cannot be
 established, such rent shall be established  by  the  division  provided
 that  where  a rent is established based on rentals determined under the
 provisions of the local emergency housing rent  control  act  such  rent
 must be adjusted to account for no less than the minimum increases which

 A. 5251--A                          6
 
 would  be  permitted if the housing accommodation were covered under the
 provisions of this chapter, LESS ANY APPROPRIATE PENALTIES.  [Where  the
 amount of rent set forth in the annual rent registration statement filed
 four  years prior to the most recent registration statement is not chal-
 lenged within four years of its filing, neither such rent nor service of
 any registration shall be subject to challenge at any time thereafter.]
   (1) The order of the state division of housing and  community  renewal
 shall  apportion  the  owner's  liability  between  or among two or more
 tenants found to have  been  overcharged  by  such  owner  during  their
 particular tenancy of a unit.
   (2) Except as provided under clauses (i) and (ii) of this paragraph, a
 complaint  under  this  subdivision  [shall] MAY be filed with the state
 division of housing and community renewal  [within  four  years  of  the
 first  overcharge  alleged  and no determination of an overcharge and no
 award or calculation of an award of the amount of an overcharge  may  be
 based upon an overcharge having occurred more than four years before the
 complaint  is  filed]  IN A COURT OF COMPETENT JURISDICTION AT ANY TIME,
 HOWEVER ANY RECOVERY OF OVERCHARGE PENALTIES SHALL BE LIMITED TO THE SIX
 YEARS PRECEDING THE COMPLAINT .  (i) [No] A penalty of three  times  the
 overcharge  [may  be  based upon an overcharge having occurred more than
 two years] SHALL BE ASSESSED UPON ALL OVERCHARGES WILLFULLY COLLECTED BY
 THE OWNER STARTING SIX YEARS before the complaint is filed [or  upon  an
 overcharge  which occurred prior to April first, nineteen hundred eight-
 y-four. (ii) Any complaint based upon overcharges occurring prior to the
 date of filing of the initial rent registration as provided  in  section
 26-517  of this chapter shall be filed within ninety days of the mailing
 of notice to the tenant  of  such  registration.  This  paragraph  shall
 preclude  examination of the rental history of the housing accommodation
 prior to the four-year period preceding the filing of a complaint pursu-
 ant to this subdivision].
   (3) Any affected tenant shall be notified of and given an  opportunity
 to  join  in  any complaint filed by an officer or employee of the state
 division of housing and community renewal.
   (4) An owner found to have overcharged may be assessed the  reasonable
 costs  and  attorney's fees of the proceeding and interest from the date
 of the overcharge at the rate of interest payable on a judgment pursuant
 to section five thousand four of the civil practice law and rules.
   (5) The order of the state division of housing and  community  renewal
 awarding  penalties  may, upon the expiration of the period in which the
 owner may institute a proceeding pursuant to  article  seventy-eight  of
 the  civil  practice law and rules, be filed and enforced by a tenant in
 the same manner as a judgment or not in excess of twenty percent thereof
 per month may be offset against any rent thereafter due the owner.
   § 5. Subdivision g of section 26-516 of the administrative code of the
 city of New York is amended, subdivision h is relettered  subdivision  i
 and a new subdivision h is added to read as follows:
   g.  [Any]  EXCEPT  WHERE A SPECIFIC PROVISION OF THIS LAW REQUIRES THE
 MAINTENANCE OF RENT RECORDS FOR A LONGER PERIOD,  INCLUDING  RECORDS  OF
 THE USEFUL LIFE OF IMPROVEMENTS MADE TO ANY HOUSING ACCOMMODATION OR ANY
 BUILDING,  ANY  owner  who  has  duly registered a housing accommodation
 pursuant to section 26-517 of this chapter  shall  not  be  required  to
 maintain  or  produce  any  records relating to rentals of such accommo-
 dation for more than [four] SIX years prior to the most recent registra-
 tion or annual statement for such  accommodation.  HOWEVER,  AN  OWNER'S
 ELECTION  NOT  TO  MAINTAIN RECORDS SHALL NOT LIMIT THE AUTHORITY OF THE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE COURTS TO EXAMINE  THE

 A. 5251--A                          7
 
 RENTAL  HISTORY  AND  DETERMINE  LEGAL  REGULATED RENTS PURSUANT TO THIS
 SECTION.
   H.  THE  DIVISION OF HOUSING AND COMMUNITY RENEWAL, AND THE COURTS, IN
 INVESTIGATING COMPLAINTS OF OVERCHARGE AND IN  DETERMINING  LEGAL  REGU-
 LATED  RENTS, SHALL CONSIDER ALL AVAILABLE RENT HISTORY WHICH IS REASON-
 ABLY NECESSARY TO MAKE SUCH DETERMINATIONS, INCLUDING BUT NOT LIMITED TO
 (I) ANY RENT REGISTRATION OR OTHER RECORDS FILED WITH THE STATE DIVISION
 OF HOUSING AND COMMUNITY RENEWAL,  OR  ANY  OTHER  STATE,  MUNICIPAL  OR
 FEDERAL  AGENCY, REGARDLESS OF THE DATE TO WHICH THE INFORMATION ON SUCH
 REGISTRATION REFERS; (II) ANY ORDER ISSUED BY ANY  STATE,  MUNICIPAL  OR
 FEDERAL  AGENCY;  (III)  ANY RECORDS MAINTAINED BY THE OWNER OR TENANTS;
 AND (IV) ANY PUBLIC RECORD KEPT IN THE REGULAR COURSE OF BUSINESS BY ANY
 STATE, MUNICIPAL OR FEDERAL AGENCY. NOTHING CONTAINED IN  THIS  SUBDIVI-
 SION  SHALL LIMIT THE EXAMINATION OF RENT HISTORY RELEVANT TO A DETERMI-
 NATION AS TO:
   (I) WHETHER THE LEGALITY OF A RENTAL AMOUNT CHARGED OR  REGISTERED  IS
 RELIABLE IN LIGHT OF ALL AVAILABLE EVIDENCE INCLUDING BUT NOT LIMITED TO
 WHETHER  AN  UNEXPLAINED INCREASE IN THE REGISTERED OR LEASE RENTS, OR A
 FRAUDULENT SCHEME TO DESTABILIZE  THE  HOUSING  ACCOMMODATION,  RENDERED
 SUCH RENT OR REGISTRATION UNRELIABLE;
   (II)  WHETHER  AN  ACCOMMODATION  IS  SUBJECT  TO THE EMERGENCY TENANT
 PROTECTION ACT OR THE RENT STABILIZATION LAW;
   (III) WHETHER AN ORDER ISSUED BY THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL OR BY A COURT, INCLUDING, BUT NOT LIMITED  TO  AN  ORDER  ISSUED
 PURSUANT  TO SECTION 26-514 OF THIS CHAPTER, OR ANY REGULATORY AGREEMENT
 OR OTHER CONTRACT WITH ANY GOVERNMENTAL AGENCY, AND REMAINING IN  EFFECT
 WITHIN  SIX YEARS OF THE FILING OF A COMPLAINT PURSUANT TO THIS SECTION,
 AFFECTS OR LIMITS THE AMOUNT OF RENT THAT MAY BE CHARGED OR COLLECTED;
   (IV) WHETHER AN OVERCHARGE WAS OR WAS NOT WILLFUL;
   (V) WHETHER A RENT ADJUSTMENT THAT REQUIRES INFORMATION REGARDING  THE
 LENGTH OF OCCUPANCY BY A PRESENT OR PRIOR TENANT WAS LAWFUL;
   (VI)  THE EXISTENCE OR TERMS AND CONDITIONS OF A PREFERENTIAL RENT, OR
 THE PROPRIETY OF A LEGAL  REGISTERED  RENT  DURING  A  PERIOD  WHEN  THE
 TENANTS WERE CHARGED A PREFERENTIAL RENT;
   (VII)  THE  LEGALITY OF A RENT CHARGED OR REGISTERED IMMEDIATELY PRIOR
 TO THE REGISTRATION OF A PREFERENTIAL RENT; OR
   (VIII) THE AMOUNT OF THE LEGAL REGULATED RENT WHERE THE APARTMENT  WAS
 VACANT  OR  TEMPORARILY EXEMPT ON THE DATE SIX YEARS PRIOR TO A TENANT'S
 COMPLAINT.
   § 6. Section 213-a of the civil practice law and rules, as amended  by
 chapter 116 of the laws of 1997, is amended to read as follows:
   §  213-a.  [Actions  to  be  commenced within four years; residential]
 RESIDENTIAL rent overcharge. [An action on a residential rent overcharge
 shall be commenced within four years of the first overcharge alleged and
 no determination of an overcharge and no  award  or  calculation  of  an
 award  of  the  amount of any overcharge may be based upon an overcharge
 having occurred more than four years before  the  action  is  commenced.
 This  section  shall  preclude  examination of the rental history of the
 housing accommodation prior to the four-year period immediately  preced-
 ing  the commencement of the action.] NO OVERCHARGE PENALTIES OR DAMAGES
 MAY BE AWARDED FOR A PERIOD MORE THAN SIX YEARS  BEFORE  THE  ACTION  IS
 COMMENCED  OR  COMPLAINT  IS  FILED, HOWEVER, AN OVERCHARGE CLAIM MAY BE
 FILED AT ANY TIME, AND THE CALCULATION AND DETERMINATION  OF  THE  LEGAL
 RENT  AND  THE AMOUNT OF THE OVERCHARGE SHALL BE MADE IN ACCORDANCE WITH
 THE PROVISIONS OF LAW GOVERNING THE  DETERMINATION  AND  CALCULATION  OF
 OVERCHARGES.

 A. 5251--A                          8
 
   §  7.  This  act  shall take effect immediately and shall apply to any
 claims pending or filed on and after such date; provided that:
   a. the amendments to section 12 of the emergency tenant protection act
 of nineteen seventy-four made by sections one, two and three of this act
 shall  expire  on the same date as such act expires and shall not affect
 the expiration of such act as provided in section 17 of chapter  567  of
 the laws of 1974; and
   b.  the  amendments  to section 26-516 of chapter 4 of title 26 of the
 administrative code of the city of New York made by  sections  four  and
 five  of  this act shall expire on the same date as such law expires and
 shall not affect the expiration of such law as  provided  under  section
 26-520 of such law.

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Assembly Bill A5251A

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Sponsored By

DINOWITZ

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Karines Reyes

Al Taylor

William Colton

Ellen C. Jaffee

multi-Sponsors

Vivian Cook

Catherine Nolan

2019-A5251 - Details

2019-A5251 - Summary

2019-A5251 - Bill Text download pdf

co-Sponsors

Karines Reyes

Al Taylor

William Colton

Ellen C. Jaffee

multi-Sponsors

Vivian Cook

Michael DenDekker

Joseph Lentol

Catherine Nolan

2019-A5251A (ACTIVE) - Details

2019-A5251A (ACTIVE) - Summary

2019-A5251A (ACTIVE) - Bill Text download pdf

Comments