NY State Senate Bill 2011-S991

Senate Bill S991

2011-2012 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 Rules 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 12, 2012	committee discharged and committed to rules
Feb 21, 2012	notice of committee consideration - requested
Jan 04, 2012	referred to cities
Jan 05, 2011	referred to cities

2011-S991 (ACTIVE) - Details

See Assembly Version of this Bill:: A706
Current Committee:: Senate Rules
Law Section:: New York City Administrative Code
Laws Affected:: Add §§28-103.23 & 28-201.5, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6175, A3752
2013-2014: S2273, A1413
2015-2016: A565
2017-2018: A1894
2019-2020: A1659

2011-S991 (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.

2011-S991 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S991

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:
First introduced in Senate in 2010.  First introduced in Assembly
in 2006.

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


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

2011-S991 (ACTIVE) - Bill Text download pdf

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

    S. 991                                                    A. 706

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

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

IN ASSEMBLY -- Introduced by M. of A. LENTOL, MARKEY,  MILLMAN,  JACOBS,
  COLTON,  BRENNAN,  ROSENTHAL  -- Multi-Sponsored by -- M. of A. AUBRY,
  COOK, DINOWITZ,  GLICK,  HIKIND,  PERRY,  PHEFFER  --  read  once  and
  referred to the Committee on Cities

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 28-103.23 to read as follows:
  S 28-103.23 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02374-01-1

S. 991                              2                             A. 706

  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.
  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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