NY State Senate Bill 2009-S6175

Senate Bill S6175

2009-2010 Legislative Session

Requires developers to deposit a portion of the total estimated project cost into an escrow account for damage caused to neighboring properties during construction

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities 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 06, 2010	referred to cities
Sep 18, 2009	referred to rules

2009-S6175 (ACTIVE) - Details

See Assembly Version of this Bill:: A3752
Current Committee:: Senate Cities
Law Section:: New York City Administrative Code
Laws Affected:: Add §§28-103.22 & 28-201.5, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2011-2012: S991, A706
2013-2014: S2273, A1413
2015-2016: A565
2017-2018: A1894
2019-2020: A1659

2009-S6175 (ACTIVE) - Summary

Requires developers to deposit a portion of the total estimated project cost into an escrow account for damage caused to neighboring properties during construction; provides that any work on a project shall be stopped until repairs are made on the adjoining property; provides that the New York city department of buildings shall develop a procedure whereby individuals who suffer damage as a result of the construction may be reimbursed within a period of sixty days.

2009-S6175 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6175

 TITLE OF BILL :
An act to amend the administrative code of the city of New York, in
relation to establishing escrow accounts to protect neighboring
landowners and tenants from damage due to construction

 GENERAL IDEA OF BILL :
Requires developers to deposit a portion of the total estimated
project cost into an escrow account for damage caused to neighboring
properties during construction.

 SUMMARY OF SPECIFIC PROVISIONS :
The Administrative Code of the City of New York is amended by adding a
new section 28103.21 and a new section 28-201.5

 JUSTIFICATION :
This legislation seeks to address a serious problem affecting long
standing property owners whose property is damaged by contractors
building on adjacent property in the City of New York. Currently, if a
developer or contractor is working on property adjacent to or near an
existing parcel and damages the existing property, the owner of the
existing damaged building is held liable for correcting any resulting
violations to his/her property. Often the New York City Buildings
Department, when called to intervene in such disputes, cites the
property owner-whose property was damaged by the contractor-for

building code violations despite the fact that the damage was entirely
caused by the contractor operating under a permit issued by the
Buildings Department. The innocent property owner often gets
violations requiring the payment of fines and may have to vacate
his/her property until the damage is corrected sometimes at great
expense. The innocent owner will likely not recover damages. Instead,
he/she expends large sums of money on legal fees incurred in a long
drawn-out civil suit.

This legislation will require every developer to pay into an escrow
account which would be used for "quick claims" by injured parties, and
would create a system of processing these quick claims to allow
injured parties, property owners or tenants, to be made whole by
negligent contractors in a timely manner.

This legislation will also prohibit the Buildings Department from
issuing fines to property owners who have been victimized by the
negligence of those working on adjacent properties.  If damages occur
to an adjoining property, any and all work on such project will be
stopped until the damage property is repaired by the developer.

 PRIOR LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :
None to the State.

 EFFECTIVE DATE :
Ninety days after it shall have become a law.

2009-S6175 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6175

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                           September 18, 2009
                               ___________

Introduced  by  Sen.  MONTGOMERY  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation  to establishing escrow accounts to protect neighboring land-
  owners and tenants from damage due to construction

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The administrative code of the city of New York is amended
by adding a new section 28-103.22 to read as follows:
  S 28-103.22 DEVELOPERS' ESCROW ACCOUNTS. 1. ANY DEVELOPER WHO PLANS TO
CONSTRUCT ANY BUILDING WITHIN THE CITY SHALL, PRIOR TO THE  COMMENCEMENT
OF  ANY CONSTRUCTION, DEPOSIT TEN PERCENT OF THE TOTAL ESTIMATED PROJECT
COST INTO AN ESCROW ACCOUNT.
  2. AN ESCROW ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION ONE  OF  THIS
SECTION SHALL BE USED TO SETTLE CLAIMS OF PROPERTY OWNERS WHOSE PROPERTY
IS  DAMAGED  DURING  ANY  CONSTRUCTION, OR THE CLAIMS OF TENANTS WHO ARE
DISPLACED FROM THEIR RESIDENCE AS THE RESULT OF DAMAGE TO  THE  PROPERTY
FROM THE CONSTRUCTION. A DEVELOPER SHALL BE HELD STRICTLY LIABLE FOR ANY
DAMAGE   OR   RELOCATION   EXPENSE  THAT  OCCURS  AS  A  RESULT  OF  THE
CONSTRUCTION.
  3. IN ADDITION TO THE REQUIREMENTS IMPOSED BY SUBDIVISION ONE OF  THIS
SECTION, IF ANY DAMAGES OCCUR TO AN ADJOINING PROPERTY, ANY AND ALL WORK
ON  SUCH  PROJECT  SHALL  BE  STOPPED  UNTIL  SUCH  DAMAGED  PROPERTY IS
REPAIRED.
  4. THE DEPARTMENT SHALL  ESTABLISH  A  CLAIM  PROCEDURE  FOR  PROPERTY
OWNERS  AND  TENANTS WHO WISH TO FILE CLAIMS AGAINST THE MONEY SET ASIDE
PURSUANT TO THIS SECTION. SUCH PROCEDURE SHALL PROVIDE  FOR  A  COMPLETE
RESOLUTION  OF  A CLAIM WITHIN SIXTY DAYS FROM THE DATE OF ITS COMMENCE-
MENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05907-01-9

S. 6175                             2

  5. ANY FUNDS IN THE ACCOUNT THAT ARE NOT CLAIMED BY AN AGGRIEVED PROP-
ERTY OWNER OR TENANT WITHIN SIX  MONTHS  AFTER  THE  COMPLETION  OF  THE
PROJECT SHALL BE RETURNED TO THE DEVELOPER.
  S  2.  The  administrative  code of the city of New York is amended by
adding a new section 28-201.5 to read as follows:
  S 28-201.5 VIOLATIONS NOT CAUSED BY  PROPERTY  OWNER.  THE  DEPARTMENT
SHALL  NOT  IMPOSE  ANY FINE OR OTHER PENALTY AGAINST ANY PROPERTY OWNER
FOR ANY VIOLATION OF THE PROVISIONS OF THIS  TITLE  THAT  OCCUR  AS  THE
RESULT OF DAMAGE CAUSED BY CONSTRUCTION ON AN ADJACENT BUILDING.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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