S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    122
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by Sens. HOYLMAN, DILAN, HAMILTON, KRUEGER -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Housing, Construction and Community Development
 
 AN  ACT  to amend the emergency tenant protection act of nineteen seven-
   ty-four, and the administrative code of  the  city  of  New  York,  in
   relation to penalties for owners of property who fail to file a proper
   or timely rent registration statement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The opening paragraph of 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 116 of the laws of 1997, is amended to read as follows:
   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  opportu-
 nity to be heard, to have collected an overcharge above the rent author-
 ized  for a housing accommodation subject to this act shall be liable to
 the tenant for a penalty equal to [three] FIVE times the amount of  such
 overcharge  FOR  A  FIRST OFFENSE AND TEN TIMES THE AMOUNT OF SUCH OVER-
 CHARGE FOR ANY SUBSEQUENT OVERCHARGES. 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 negli-
 gence, the state division of housing and community renewal shall  estab-
 lish  the  penalty  as the amount of the overcharge plus interest at the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01785-01-7

 S. 122                              2
 
 rate of interest payable on a judgment pursuant to section five thousand
 four of the civil practice law and rules. (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 annual registration statement filed four years
 prior to the most recent registration statement, (or, if  more  recently
 filed,  the initial registration statement) plus in each case any subse-
 quent 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.  (ii)  As  to
 complaints  filed  within  ninety  days of the initial registration of a
 housing accommodation, the legal regulated rent for purposes  of  deter-
 mining  an overcharge shall be deemed to be the rent charged on the date
 four years prior to the date of the initial registration of the  housing
 accommodation  (or, if the housing accommodation was subject to this act
 for less than four years, the initial legal regulated rent) plus in each
 case, any lawful increases and adjustments. 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 regis-
 tration 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.
   § 2. The opening paragraph of 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:
   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]  FIVE  times  the
 amount  of  such overcharge FOR A FIRST OFFENSE AND TEN TIMES THE AMOUNT
 OF SUCH OVERCHARGE FOR ANY SUBSEQUENT OVERCHARGES.  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 interest.  (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  annual  registration  statement  filed four 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.   (ii) As to complaints
 filed within ninety days of the initial registration of a housing accom-
 modation, the legal regulated rent  shall  be  deemed  to  be  the  rent

 S. 122                              3
 
 charged  on  the date four years prior to the date of the initial regis-
 tration of the housing accommodation (or, if the  housing  accommodation
 was  subject to this chapter for less than four years, the initial legal
 regulated rent) plus in each case, any lawful increases and adjustments.
 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.
   § 3. This act shall take effect immediately; provided that
   a.  the amendments to the opening paragraph of paragraph 1 of subdivi-
 sion 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.