S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10281
 
                           I N  A S S E M B L Y
 
                               April 8, 2020
                                ___________
 
 Introduced  by  M.  of  A.  O'DONNELL  --  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 enacting the "New York city small business rent stabiliza-
   tion act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York city small business rent stabilization act".
   §  2.  Title  22 of the administrative code of the city of New York is
 amended by adding a new chapter 12 to read as follows:
                                CHAPTER 12
                       COMMERCIAL RENT STABILIZATION
   § 22-1201 APPLICATION. THIS CHAPTER APPLIES TO ALL  COMMERCIAL  SPACES
 WITH  A  LEASE  OR  OTHER RENTAL AGREEMENT THAT EXPIRES ON OR AFTER JULY
 FIRST, TWO THOUSAND TWENTY, WHETHER OR NOT SUCH LEASE OR  RENTAL  AGREE-
 MENT  WAS  IN  EFFECT ON SUCH DATE. THIS CHAPTER SHALL APPLY ONLY TO ALL
 COMMERCIAL LEASE RENEWALS FOR COMMERCIAL PREMISES. ON ANY OCCASION WHER-
 EIN A LANDLORD AND TENANT ARE REQUIRED TO NEGOTIATE THE TERMS OF A LEASE
 RENEWAL FOR COMMERCIAL USES SUCH PROVISIONS OF THIS CHAPTER SHALL APPLY.
 SUCH PROVISIONS OF THIS CHAPTER SHALL APPLY TO ANY LANDLORD AND  CURRENT
 TENANT WHOSE LEASE EXPIRED ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY.
   §  22-1202  DEFINITIONS.  AS USED IN THIS CHAPTER, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT REQUIRES OTHERWISE:
   A. "ADMINISTERING AGENCY" SHALL MEAN ANY CITY AGENCY, OFFICE,  DEPART-
 MENT,  DIVISION,  BUREAU  OR  INSTITUTION OF GOVERNMENT, THE EXPENSES OF
 WHICH ARE PAID IN WHOLE OR IN PART FROM THE CITY TREASURY, AS THE  MAYOR
 SHALL  DESIGNATE  OR ESTABLISH TO IMPLEMENT THE PROVISIONS OF THIS CHAP-
 TER.
   B. "AT-WILL TENANT" SHALL MEAN A TENANT, SUBTENANT, LESSEE, SUBLESSEE,
 OR ANY OTHER PERSONS LAWFULLY ENTITLED TO USE OR OCCUPY  ANY  COMMERCIAL
 PREMISES WITHOUT A WRITTEN LEASE OR OTHER RENTAL AGREEMENT, WHO HAS PAID
 RENT TO A LANDLORD FOR AT LEAST SIX MONTHS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15761-02-0

 A. 10281                            2
 
   C. "BOARD" SHALL MEAN THE COMMERCIAL RENT GUIDELINES BOARD ESTABLISHED
 BY SUBDIVISION A OF SECTION 22-1203 OF THIS CHAPTER.
   D.  "CHAIN  BUSINESS"  SHALL  MEAN  AN ESTABLISHMENT THAT IS PART OF A
 GROUP OF ESTABLISHMENTS THAT SHARE A COMMON LANDLORD  OR  PRINCIPAL  WHO
 OWNS AT LEAST THIRTY PERCENT OF EACH ESTABLISHMENT WHERE SUCH ESTABLISH-
 MENTS:
   (1) ENGAGE IN THE SAME BUSINESS; OR
   (2) OPERATE PURSUANT TO A FRANCHISE AGREEMENT WITH THE SAME FRANCHISOR
 AS  DEFINED  IN  SECTION  SIX HUNDRED EIGHTY-ONE OF THE GENERAL BUSINESS
 LAW.
   E. "COMMERCIAL SPACE" SHALL MEAN A SPACE USED OR OCCUPIED FOR  NON-RE-
 SIDENTIAL  PURPOSES PURSUANT TO A VALID COMMERCIAL LEASE OR OTHER RENTAL
 AGREEMENT. SUCH TERM INCLUDES ONLY RETAIL STORES, PROFESSIONAL  OFFICES,
 SERVICE OFFICES OR OTHER OFFICES OF TEN THOUSAND SQUARE FEET OR LESS AND
 MANUFACTURING  ESTABLISHMENTS  OR  ART AND/OR CULTURAL ESTABLISHMENTS OF
 TWENTY-FIVE THOUSAND SQUARE FEET OR LESS. SUCH TERM DOES NOT  INCLUDE  A
 BUILDING OWNED BY:
   (1) A NON-PROFIT ENTITY WHERE:
   (I) MORE THAN FIFTY PERCENT OF BUILDING UNITS ARE RENT REGULATED; OR
   (II)  MORE THAN THIRTY PERCENT OF BUILDING UNITS ARE BELOW FAIR MARKET
 RENT RATE AND ARE RESTRICTED INCOME UNITS; OR
   (2) A HOUSING DEVELOPMENT FUND CORPORATION PURSUANT TO ARTICLE TWO  OR
 ELEVEN  OF  THE PRIVATE HOUSING FINANCE LAW, INCLUDING BUILDINGS USED AS
 MITCHELL-LAMA HOUSING AND ANY OTHER RESTRICTED INCOME CO-OP HOUSING.
   F. "COMMISSIONER" SHALL MEAN THE HEAD OF THE ADMINISTERING AGENCY.
   G. "LANDLORD" SHALL MEAN ANY OWNER, LESSOR, SUBLESSOR OR OTHER  PERSON
 ENTITLED  TO  RECEIVE  RENT  FOR  THE USE OR OCCUPANCY OF ANY COMMERCIAL
 PREMISES, OR AN AGENT THEREOF.
   H. "PASS-ALONG" SHALL MEAN ANY TAXES, SEWER, WATER OR UTILITY FEE,  OR
 OPERATING  CHARGES APPORTIONED TO A TENANT IN CONNECTION WITH THE USE OR
 OCCUPANCY OF ANY COMMERCIAL SPACE.
   I. "RENT" SHALL MEAN ANY CONSIDERATION, INCLUDING BUT NOT  LIMITED  TO
 PASS-ALONGS,  RECEIVED  BY  THE  LANDLORD  IN CONNECTION WITH THE USE OR
 OCCUPANCY OF ANY COMMERCIAL SPACE.
   J. "SERVICES" SHALL MEAN THOSE FACILITIES WHICH ENHANCE THE USE OF THE
 COMMERCIAL PREMISES, INCLUDING, BUT NOT  LIMITED  TO,  REPAIRS,  MAINTE-
 NANCE,  PAINTING, HEAT, HOT AND COLD WATER, UTILITIES, ELEVATOR SERVICE,
 SECURITY DEVICES AND PATROLS, FURNISHINGS, STORAGE, JANITORIAL AND LAND-
 SCAPING SERVICES, REFUSE REMOVAL, INSURANCE PROTECTION,  PARKING  SPACES
 AND  FACILITIES  IN  COMMON AREAS OF THE BUILDING OR PARCEL IN WHICH THE
 RENTAL UNIT IS LOCATED.
   K. "TENANT" SHALL MEAN A TENANT, SUBTENANT, LESSEE, SUBLESSEE, OR  ANY
 OTHER  PERSONS  LAWFULLY  ENTITLED TO USE OR OCCUPY ANY COMMERCIAL PREM-
 ISES.
   § 22-1203 COMMERCIAL RENT  GUIDELINES  BOARD.  A.  THERE  SHALL  BE  A
 COMMERCIAL RENT GUIDELINES BOARD CONSISTING OF NINE MEMBERS APPOINTED BY
 THE MAYOR AS FOLLOWS:
   (1) ONE PUBLIC MEMBER TO SERVE AS THE CHAIRPERSON OF THE BOARD;
   (2)  TWO  MEMBERS  REPRESENTING COMMERCIAL TENANTS WHICH ARE NOT CHAIN
 BUSINESSES;
   (3) TWO MEMBERS REPRESENTING COMMERCIAL LANDLORDS; AND
   (4) FOUR PUBLIC MEMBERS.
   B. THE MEMBERS OF THE BOARD, EXCEPT THE CHAIRPERSON, SHALL SERVE STAG-
 GERED  TERMS  OF  TWO  YEARS.  FOUR  MEMBERS  OF  THE  BOARD  ORIGINALLY
 APPOINTED,  COMPRISING  ONE  MEMBER  REPRESENTING  TENANTS,  ONE  MEMBER
 REPRESENTING LANDLORDS AND TWO PUBLIC MEMBERS, SHALL SERVE UNTIL JANUARY

 A. 10281                            3
 
 FIRST, TWO  THOUSAND  TWENTY-THREE.  THE  OTHER  MEMBERS  OF  THE  BOARD
 ORIGINALLY APPOINTED, EXCLUDING THE CHAIRPERSON, SHALL SERVE UNTIL JANU-
 ARY  FIRST,  TWO  THOUSAND  TWENTY-FOUR.   THEREAFTER, ALL MEMBERS SHALL
 SERVE  TWO-YEAR  TERMS  ON  THE  BOARD  UNTIL THEIR SUCCESSORS HAVE BEEN
 APPOINTED AND QUALIFIED, EXCEPT THE CHAIRPERSON, WHO SHALL SERVE AT  THE
 PLEASURE OF THE MAYOR.
   C.  THE MAYOR SHALL FILL ANY VACANCY THAT MAY OCCUR IN THE SAME MANNER
 AS THE ORIGINAL APPOINTMENT. A MEMBER  OF  THE  BOARD,  OTHER  THAN  THE
 CHAIRPERSON,  MAY ONLY BE REMOVED BY THE MAYOR FOR CAUSE AFTER AN OPPOR-
 TUNITY TO BE HEARD IN PERSON OR BY COUNSEL,  IN  THE  MEMBER'S  DEFENSE,
 UPON AT LEAST TEN DAYS WRITTEN NOTICE.
   D.  THE  CHAIRPERSON  SHALL BE THE CHIEF ADMINISTRATIVE OFFICER OF THE
 BOARD AND SHALL HAVE THE AUTHORITY TO EMPLOY, ASSIGN AND  SUPERVISE  THE
 MEMBERS  OF  THE BOARD AND ENTER INTO CONTRACTS FOR CONSULTANT SERVICES.
 THE COMMISSIONER SHALL COOPERATE WITH THE BOARD AND MAY ASSIGN PERSONNEL
 AND PERFORM SUCH SERVICES IN CONNECTION WITH THE DUTIES OF THE BOARD  AS
 MAY REASONABLY BE REQUIRED BY THE CHAIRPERSON.
   E.  THE  MEMBERS OF THE BOARD SHALL BE COMPENSATED ON A PER DIEM BASIS
 FOR NO MORE THAN FIFTY DAYS PER YEAR AT A RATE TO BE DETERMINED  BY  THE
 COMMISSIONER,  AND  THE  CHAIRPERSON  SHALL BE COMPENSATED ON A PER DIEM
 BASIS FOR NO MORE THAN ONE HUNDRED DAYS PER YEAR AT A RATE TO BE  DETER-
 MINED BY THE COMMISSIONER.
   F.  THE  BOARD  SHALL ESTABLISH INITIAL GUIDELINES FOR COMMERCIAL RENT
 ADJUSTMENTS BY THE FIRST OF JULY NEXT SUCCEEDING APPOINTMENT OF THE LAST
 MEMBER OF THE BOARD.   THEREAFTER,  THE  BOARD  SHALL  ESTABLISH  ANNUAL
 GUIDELINES TO BE FILED IN ACCORDANCE WITH SUBDIVISION G OF THIS SECTION.
 IN  DETERMINING WHETHER TO ADJUST RENTS FOR COMMERCIAL SPACES SUBJECT TO
 THE COMMERCIAL RENT STABILIZATION PROVISIONS OF THIS CHAPTER, THE  BOARD
 SHALL CONSIDER, AMONG OTHER THINGS:
   (1)  THE  ECONOMIC CONDITION OF THE COMMERCIAL REAL ESTATE INDUSTRY IN
 THE COMMUNITY BOARD DISTRICT, INCLUDING SUCH FACTORS AS:
   (I) COMMERCIAL REAL ESTATE TAXES AND SEWER AND WATER RATES;
   (II) GROSS OPERATING AND MAINTENANCE COSTS, INCLUDING BUT NOT  LIMITED
 TO INSURANCE RATES, GOVERNMENTAL FEES, FUEL AND LABOR COSTS;
   (III)  COSTS  AND AVAILABILITY OF FINANCING, INCLUDING EFFECTIVE RATES
 OF INTEREST; AND
   (IV) THE OVERALL SUPPLY  OF  COMMERCIAL  SPACES  AND  OVERALL  VACANCY
 RATES;
   (2)  RELEVANT  DATA  FROM  THE  CURRENT AND PROJECTED MARKET VALUES OF
 COMMERCIAL RENTALS IN THE COMMUNITY BOARD DISTRICT;
   (3) THE SOCIOECONOMIC AND DEMOGRAPHIC CHANGES IN EACH COMMUNITY  BOARD
 DISTRICT  BASED  ON  THE  MOST  RECENT AVAILABLE DATA, INCLUDING BUT NOT
 LIMITED TO CHANGES IN:
   (I) THE MEDIAN INCOME LEVEL;
   (II) EDUCATION;
   (III) RACE;
   (IV) ETHNICITY; AND
   (V) HOME OWNERSHIP; AND
   (4) ANY OTHER RELEVANT DATA AVAILABLE TO THE BOARD.
   G. NOT LATER THAN JULY FIRST OF EACH YEAR, THE BOARD SHALL  FILE  WITH
 THE CITY CLERK ITS GUIDELINES FOR THE PRECEDING CALENDAR YEAR, AND SHALL
 ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXIMUM RATE OR RATES OF
 RENT  ADJUSTMENT,  IF  ANY,  FOR  ALL  COMMERCIAL  SPACES SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER AUTHORIZED FOR LEASES OR OTHER RENTAL  AGREE-
 MENTS  COMMENCING  ON  THE  FIRST  OF  OCTOBER NEXT SUCCEEDING OR WITHIN

 A. 10281                            4
 
 TWELVE MONTHS THEREAFTER.    SUCH  GUIDELINES  AND  STATEMENT  SHALL  BE
 PUBLISHED IN THE CITY RECORD.
   H.  PRIOR  TO THE ANNUAL ADJUSTMENT OF THE LEVEL OF RENTS PROVIDED FOR
 UNDER SUBDIVISION F OF THIS SECTION, THE BOARD SHALL HOLD AT  LEAST  TWO
 PUBLIC  HEARINGS  FOR  THE PURPOSE OF COLLECTING INFORMATION RELATING TO
 ALL FACTORS SET FORTH IN SUBDIVISION F OF THIS SECTION,  AND  ANY  OTHER
 RELEVANT  INFORMATION  AS  MAY  BE NECESSARY FOR ESTABLISHING THE ANNUAL
 ADJUSTMENT GUIDELINES. THE BOARD SHALL PROVIDE NOTICE OF THE DATE,  TIME
 AND LOCATION AND A SUMMARY OF THE SUBJECT MATTER OF THE PUBLIC HEARINGS,
 TO  BE PUBLISHED IN THE CITY RECORD DAILY FOR THE PERIOD BEGINNING EIGHT
 DAYS PRIOR TO THE HEARING DATE, AND AT LEAST ONCE IN ONE OR MORE NEWSPA-
 PERS OF GENERAL CIRCULATION AT LEAST EIGHT  DAYS  IMMEDIATELY  PRECEDING
 SUCH HEARING DATE.
   I. MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE THAN
 ONCE ANNUALLY FOR ANY COMMERCIAL SPACE SUBJECT TO THE PROVISIONS OF THIS
 CHAPTER. ONCE ESTABLISHED, NO SUCH RATE SHALL, WITHIN THE ONE-YEAR PERI-
 OD,  BE  ADJUSTED  BY  ANY  SURCHARGE, SUPPLEMENTARY ADJUSTMENT OR OTHER
 MODIFICATION EXCEPT AS PROVIDED IN SECTION 22-1208 OF THIS CHAPTER.
   § 22-1204 STABILIZATION PROVISIONS. A. UPON RENEWAL  OF  A  LEASE  FOR
 COMMERCIAL  SPACE,  THE RENT CHARGED FOR THE FIRST YEAR OF THE NEW LEASE
 SHALL NOT EXCEED THE INITIAL LEGAL REGULATED  RENT  OR  LEGAL  REGULATED
 RENT  ADJUSTED PURSUANT TO SECTION 22-1208 OF THIS CHAPTER UNTIL THE END
 OF ANY LEASE OR OTHER RENTAL AGREEMENT IN EFFECT ON THE  EFFECTIVE  DATE
 OF  THIS  CHAPTER  UNTIL  SUCH  TIME AS A DIFFERENT LEGAL REGULATED RENT
 SHALL BE AUTHORIZED PURSUANT TO GUIDELINES ADOPTED BY THE  BOARD  ESTAB-
 LISHED UNDER SECTION 22-1203 OF THIS CHAPTER. NO LANDLORD SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER SHALL CHARGE OR COLLECT ANY RENT THAT EXCEEDS
 THE INITIAL LEGAL REGULATED RENT OR LEGAL REGULATED RENT ADJUSTED PURSU-
 ANT  TO  SECTION  22-1208  OF THIS CHAPTER UNTIL THE END OF ANY LEASE OR
 OTHER RENTAL AGREEMENT IN EFFECT ON THE EFFECTIVE DATE OF THIS  CHAPTER,
 UNTIL  SUCH TIME AS A DIFFERENT LEGAL REGULATED RENT HAS BEEN AUTHORIZED
 PURSUANT TO GUIDELINES ADOPTED BY THE BOARD. FOR ANY LEASE EXCEEDING ONE
 YEAR, THE RENT CHARGED FOR ANY SUBSEQUENT  YEAR  SHALL  NOT  EXCEED  THE
 LEGAL  REGULATED  RENT  AS AUTHORIZED PURSUANT TO THE MOST RECENT GUIDE-
 LINES ADOPTED BY THE BOARD. IF THE RENT CHARGED FOR THE  FIRST  YEAR  OF
 THE NEW LEASE IS LESS THAN THE INITIAL LEGAL REGULATED RENT OR THE LEGAL
 REGULATED RENT ADJUSTED PURSUANT TO SECTION 22-1208 OF THIS CHAPTER, THE
 RENT  CHARGED  FOR ANY SUBSEQUENT YEAR SHALL NOT EXCEED THE FIRST YEAR'S
 RENT ADJUSTED BY THE RATE AUTHORIZED PURSUANT TO THE MOST RECENT  GUIDE-
 LINES ADOPTED BY THE BOARD.
   B.  THE  INITIAL  REGULATED RENT FOR A COMMERCIAL SPACE SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER IS THE RENT CHARGED IN  THE  LEASE  OR  OTHER
 RENTAL  AGREEMENT  FOR  SUCH COMMERCIAL SPACE IN EFFECT ON THE EFFECTIVE
 DATE OF THIS CHAPTER.
   C. THE INITIAL REGULATED RENT FOR A COMMERCIAL SPACE  SUBJECT  TO  THE
 PROVISIONS  OF  THIS  CHAPTER,  THAT  IS NOT SUBJECT TO A LEASE OR OTHER
 RENTAL AGREEMENT ON THE EFFECTIVE DATE OF THIS  CHAPTER,  SHALL  BE  THE
 RENT  CHARGED  IN  THE  FIRST  LEASE  OR OTHER RENTAL AGREEMENT FOR SUCH
 COMMERCIAL SPACE THAT BECOMES EFFECTIVE AFTER THE EFFECTIVE DATE OF THIS
 CHAPTER, PROVIDED THAT SUCH RENT  SHALL  NOT  INCLUDE  ANY  PASS-ALONGS.
 HOWEVER,  IF  A  CLAIM ALLEGING COMMERCIAL TENANT HARASSMENT PURSUANT TO
 CHAPTER NINE OF THIS TITLE IS BROUGHT AGAINST A LANDLORD BY THE PREVIOUS
 TENANT AS THE MEANS BY WHICH THE VACANCY WAS EFFECTED AND SUCH  PREVIOUS
 TENANT'S  CLAIM  IS  UPHELD  BY  A COURT OF COMPETENT JURISDICTION, SUCH
 LANDLORD SHALL BE LIABLE FOR DAMAGES UP TO TEN TIMES  THE  PROPOSED  NEW
 LEASE'S MONTHLY RENT OR FIFTY THOUSAND DOLLARS, WHICHEVER IS GREATER, TO

 A. 10281                            5

 BE  PAYABLE TO THE PREVIOUS TENANT, IN ADDITION TO CONSEQUENTIAL DAMAGES
 AND ANY OTHER REMEDY AVAILABLE AT LAW OR EQUITY.
   D.  UPON A FINDING OF COMMERCIAL TENANT HARASSMENT PURSUANT TO CHAPTER
 NINE OF THIS TITLE, THE RENT FOR THE NEW TENANT SHALL BE NO HIGHER  THAN
 THE RENT THAT COULD HAVE BEEN CHARGED TO THE PREVIOUS TENANT PURSUANT TO
 SUBDIVISION  A  OF THIS SECTION, RETROACTIVE TO THE BEGINNING OF THE NEW
 TENANCY. ALL OTHER TERMS AND CONDITIONS OF THE LEASE  SHALL  CONFORM  TO
 THE PROVISIONS OF SUBDIVISION A OF THIS SECTION.
   E.  IF  A  TENANT  IS  AN AT-WILL TENANT, SUCH TENANT HAS THE RIGHT TO
 REQUEST A WRITTEN LEASE AGREEMENT THAT SHALL CONFORM TO  THE  PROVISIONS
 OF SUBDIVISION A OF THIS SECTION AND BE A MONTHLY RENT EQUIVALENT TO THE
 AMOUNT  SUCH TENANT IS PAYING AT THE TIME OF SUCH REQUEST.  THE LANDLORD
 OF AN AT-WILL TENANT SHALL PROVIDE A WRITTEN LEASE OFFER  WITHIN  NINETY
 DAYS  OF  RECEIVING SUCH A REQUEST FOR A WRITTEN LEASE. A LANDLORD SHALL
 ONLY BE ABLE TO REFUSE TO PROVIDE A WRITTEN LEASE OR  EVICT  AN  AT-WILL
 TENANT BASED ON THE PROVISIONS UNDER SUBDIVISION D OF SECTION 22-1210 OF
 THIS  CHAPTER,  EXCEPT  FOR  THE PROVISION SET FORTH IN PARAGRAPH TWO OF
 SUCH SUBDIVISION.
   § 22-1205 ENFORCEMENT AND PROCEDURES. A. SUBJECT TO THE CONDITIONS AND
 LIMITATIONS OF THIS SECTION, ANY LANDLORD WHO, UPON THE COMPLAINT  OF  A
 TENANT,  IS FOUND BY THE COMMISSIONER, AFTER A REASONABLE OPPORTUNITY TO
 BE HEARD, TO HAVE COLLECTED AN OVERCHARGE ABOVE THE RENT AUTHORIZED  FOR
 A  COMMERCIAL SPACE SUBJECT TO THE PROVISIONS OF THIS CHAPTER, IS LIABLE
 TO SUCH TENANT FOR A PENALTY EQUAL TO THREE TIMES  THE  AMOUNT  OF  SUCH
 OVERCHARGE.  IF  THE  LANDLORD  ESTABLISHES,  BY  A PREPONDERANCE OF THE
 EVIDENCE, THAT THE OVERCHARGE WAS NOT INTENTIONAL, THE PENALTY SHALL  BE
 THE  AMOUNT  OF  THE  OVERCHARGE PLUS INTEREST ASSESSED FROM THE INITIAL
 DATE OF SUCH OVERCHARGE. AFTER A COMPLAINT OF RENT OVERCHARGE  HAS  BEEN
 FILED  AND  SERVED  ON  A LANDLORD, THE VOLUNTARY ADJUSTMENT OF THE RENT
 AND/OR THE VOLUNTARY TENDER OF A REFUND OF RENT OVERCHARGES SHALL NOT BE
 CONSIDERED BY THE COMMISSIONER AS EVIDENCE THAT SUCH OVERCHARGE WAS  NOT
 WILLFUL.
   B.  THE LEGAL REGULATED RENT FOR PURPOSES OF DETERMINING AN OVERCHARGE
 IS THE RENT INDICATED IN THE ANNUAL  REGISTRATION  STATEMENT  FILED  AND
 SERVED  UPON  THE TENANT SIX YEARS PRIOR TO THE MOST RECENT REGISTRATION
 STATEMENT, OR, IF MORE RECENTLY FILED, THE INITIAL  REGISTRATION  STATE-
 MENT  PLUS,  FOR  EACH CASE, ANY SUBSEQUENT LAWFUL INCREASES AND ADJUST-
 MENTS. THE COMMISSIONER, 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. AS TO
 COMPLAINTS FILED WITHIN NINETY DAYS OF THE  INITIAL  REGISTRATION  OF  A
 COMMERCIAL  SPACE,  THE  LEGAL  REGULATED  RENT IS DEEMED TO BE THE RENT
 CHARGED ON THE DATE SIX YEARS PRIOR TO THE DATE OF THE INITIAL REGISTRA-
 TION OF THE COMMERCIAL SPACE OR, IF THE COMMERCIAL SPACE WAS SUBJECT  TO
 THIS  CHAPTER  FOR LESS THAN SIX YEARS, THE INITIAL LEGAL REGULATED RENT
 PLUS, IN EACH CASE, ANY LAWFUL INCREASES AND ADJUSTMENTS. WHERE THE RENT
 CHARGED ON THE DATE SIX YEARS PRIOR TO THE DATE OF THE INITIAL REGISTRA-
 TION OF THE COMMERCIAL SPACE CANNOT BE ESTABLISHED, SUCH RENT  SHALL  BE
 ESTABLISHED  BY  THE  COMMISSIONER  BASED  ON,  AMONG  OTHER THINGS, THE
 FACTORS SET FORTH IN PARAGRAPH ONE OF SUBDIVISION F OF  SECTION  22-1203
 OF THIS CHAPTER.
   C. COMPLAINTS UNDER THIS SECTION MAY BE FILED WITH THE COMMISSIONER AT
 ANY  TIME, HOWEVER ANY RECOVERY OF OVERCHARGE PENALTIES SHALL BE LIMITED
 TO THE SIX YEARS PRECEDING THE COMPLAINT.
   D. A LANDLORD FOUND TO HAVE OVERCHARGED A TENANT MAY BE  ASSESSED  THE
 REASONABLE  COSTS  AND  ATTORNEYS'  FEES OF ANY NECESSARY PROCEEDING AND

 A. 10281                            6
 
 INTEREST FROM THE INITIAL DATE OF THE OVERCHARGE AT THE RATE OF INTEREST
 PAYABLE ON A JUDGMENT PURSUANT TO SECTION  FIVE  THOUSAND  FOUR  OF  THE
 CIVIL PRACTICE LAWS AND RULES.
   E.  A TENANT MAY, UPON THE EXPIRATION OF THE PERIOD IN WHICH THE LAND-
 LORD MAY INSTITUTE A PROCEEDING PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE
 CIVIL PRACTICE LAW AND RULES, FILE AND ENFORCE AN ORDER OF  THE  COMMIS-
 SIONER AWARDING PENALTIES IN THE SAME MANNER AS A JUDGMENT.
   F.  THE COMMISSIONER SHALL PROMULGATE ALL RULES AND REGULATIONS NECES-
 SARY FOR THE IMPLEMENTATION OF THIS SECTION.
   § 22-1206 RENT REGISTRATION.  EACH  LANDLORD  OF  A  COMMERCIAL  SPACE
 SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL REGISTER SUCH SPACE WITH
 THE ADMINISTERING AGENCY WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE
 DATE  OF  THIS  CHAPTER  USING FORMS PRESCRIBED BY THE COMMISSIONER. THE
 INFORMATION TO BE PROVIDED ON SUCH FORMS SHALL INCLUDE THE FOLLOWING:
   A. THE NAME AND ADDRESS OF THE  BUILDING  OR  GROUP  OF  BUILDINGS  OR
 DEVELOPMENT  IN  WHICH  SUCH  COMMERCIAL SPACE IS LOCATED AND THE TENANT
 THEREOF;
   B. THE NUMBER OF COMMERCIAL SPACES BELONGING TO SUCH LANDLORD  IN  THE
 BUILDING  OR  GROUP OF BUILDINGS OR DEVELOPMENT IN WHICH SUCH COMMERCIAL
 SPACE IS LOCATED;
   C. THE NUMBER OF COMMERCIAL SPACES IN SUCH BUILDING OR GROUP OF BUILD-
 INGS OR DEVELOPMENT SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
   D. THE RENT FOR THE COMMERCIAL SPACE CHARGED ON THE REGISTRATION DATE;
 AND
   E. THE SQUARE FOOTAGE OF  EACH  COMMERCIAL  SPACE  NAMED  PURSUANT  TO
 SUBDIVISION A OF THIS SECTION.
   §  22-1207  FEES.  A. THE DEPARTMENT OF FINANCE SHALL COLLECT FROM THE
 LANDLORD OF EACH COMMERCIAL SPACE REGISTERED PURSUANT TO SECTION 22-1206
 OF THIS CHAPTER AN ANNUAL FEE IN THE AMOUNT OF ONE HUNDRED  DOLLARS  FOR
 EACH  COMMERCIAL SPACE SUBJECT TO THIS CHAPTER, IN ORDER TO DEFRAY COSTS
 INCURRED IN ADMINISTERING THIS CHAPTER.
   B. FAILURE TO PAY THE FEE IMPOSED BY SUBDIVISION  A  OF  THIS  SECTION
 SHALL CONSTITUTE A CHARGE DUE TO THE CITY. ALL SUCH FEES DUE TO THE CITY
 CONSTITUTE  A  DEBT  RECOVERABLE  FROM  THE  LANDLORD  AND  THE CITY MAY
 COMMENCE AN ACTION OR PROCEEDING, FILE A LIEN UPON THE BUILDING OR  TAKE
 ANY OTHER LAWFUL ACTION FOR THE RECOVERY OF SUCH FEES.
   § 22-1208 APPLICATION FOR ADJUSTMENT OF INITIAL RENT.  NOTWITHSTANDING
 ANY  OTHER  PROVISION  OF THIS CHAPTER, A TENANT OR LANDLORD MAY, WITHIN
 SIXTY DAYS OF THE EFFECTIVE DATE OF THIS CHAPTER OR THE COMMENCEMENT  OF
 THE  FIRST TENANCY THEREAFTER, WHICHEVER IS LATER, FILE WITH THE COMMIS-
 SIONER AN APPLICATION FOR ADJUSTMENT OF THE INITIAL LEGAL REGULATED RENT
 FOR SUCH COMMERCIAL SPACE. THE  COMMISSIONER  MAY  ADJUST  SUCH  INITIAL
 LEGAL  REGULATED  RENT UPON A FINDING THAT THE PRESENCE OF EXTRAORDINARY
 CIRCUMSTANCES MATERIALLY AFFECTING THE INITIAL LEGAL REGULATED RENT  HAS
 RESULTED  IN  A  RENT  WHICH  IS  SUBSTANTIALLY DIFFERENT FROM THE RENTS
 GENERALLY PREVAILING IN THE SAME AREA FOR SUBSTANTIALLY SIMILAR  COMMER-
 CIAL SPACES.
   § 22-1209 MANNER OF SERVICE. ALL PAPERS AND NOTICES WHICH, PURSUANT TO
 THE  TERMS OF SECTION 22-1210 OF THIS CHAPTER ARE REQUIRED TO BE SERVED,
 SHALL BE SERVED BY A PROCESS SERVER, OR SHALL  BE  SENT  BY  FIRST-CLASS
 MAIL AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED OR BY ANY EXPRESS MAIL
 SERVICE.
   §  22-1210  RENTAL  GUIDELINES. A. ALL LEASES OF A COMMERCIAL PREMISES
 MAY BE RENEWED AT THE OPTION OF A TENANT WHO DID NOT LOSE THE  RIGHT  TO
 RENEW  A  LEASE  UNDER  THE  GROUNDS  DESCRIBED IN SUBDIVISION D OF THIS
 SECTION. SUCH LEASE RENEWALS SHALL BE FOR A MINIMUM TERM OF  TEN  YEARS,

 A. 10281                            7
 
 PROVIDED  HOWEVER,  THAT  AT  THE  TENANT'S OPTION, AND WITH THE WRITTEN
 APPROVAL OF THE LANDLORD, A LEASE OF SHORTER OR LONGER DURATION  MAY  BE
 SELECTED.
   B.  NO PERIOD OF LEASE EXTENSION REQUIRED BY THIS CHAPTER SHALL EXTEND
 BEYOND THE LANDLORD'S LAWFUL ABILITY TO RENT THE PREMISES TO THE TENANT,
 WHERE SUCH ABILITY IS LIMITED BY:
   (1) THE OBLIGATION TO RENT THE PREMISES TO A THIRD PARTY PURSUANT TO A
 BONA FIDE LEASE ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF  THIS  CHAP-
 TER;
   (2)  THE  EXERCISE  BY A THIRD PARTY OF A BONA FIDE OPTION TO RENT THE
 PREMISES PROVIDED THAT SUCH OPTION WAS GIVEN PRIOR TO THE EFFECTIVE DATE
 OF THIS CHAPTER; OR
   (3) ANY OTHER LAWFUL REASON ARISING PRIOR TO SUCH EFFECTIVE DATE.
   C. A TENANT SHALL LOSE THE RIGHT OF RENEWAL AND A LANDLORD MAY  REFUSE
 TO RENEW A LEASE ONLY ON THE FOLLOWING GROUNDS:
   (1)  THE  TENANT HAS PERSISTENTLY DELAYED RENT PAYMENTS WITHOUT CAUSE.
 FOR THE PURPOSE OF THIS SUBDIVISION, "CAUSE" IS DEFINED AS THE WITHHOLD-
 ING OF RENTAL PAYMENTS BY THE TENANT DUE TO THE  ALLEGED  VIOLATIONS  OF
 THE  RENTAL  AGREEMENT  BY THE LANDLORD. IN ORDER FOR THE LANDLORD TO BE
 EXCUSED FROM RENEWAL ON THIS GROUND, THE LANDLORD MUST HAVE  SERVED  THE
 TENANT  AT  LEAST  THREE  PRIOR NOTICES DURING THE TERM OF THE LEASE FOR
 DEMAND OF PAYMENT WITHIN THIRTY DAYS, AND THEN SHOW THAT SUCH LESSEE HAS
 NOT PAID WITHIN SUCH THIRTY-DAY PERIOD. THE  LANDLORD  SHALL  NOT  SERVE
 SUCH  NOTICE  UNLESS  THE  RENT  PAYMENT WAS IN ARREARS FOR A MINIMUM OF
 FIFTEEN DAYS;
   (2) THE TENANT USES THE COMMERCIAL PREMISES IN A MANNER  SUBSTANTIALLY
 DIFFERENT FROM THAT DESCRIBED IN THE LEASE;
   (3) THE TENANT CONDUCTS OR PERMITS ANY FORM OF ILLEGAL ACTIVITY ON THE
 PREMISES;
   (4)  THE  TENANT HAS SUBSTANTIALLY BREACHED ANY SUBSTANTIVE OBLIGATION
 UNDER THE CURRENT LEASE AND HAS FAILED TO CURE SUCH BREACH WITHIN THIRTY
 DAYS FOLLOWING WRITTEN NOTICE TO CURE BY THE LANDLORD;
   (5) UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD INTENDS,
 IN GOOD FAITH, TO DEMOLISH OR SUBSTANTIALLY RECONSTRUCT THE PREMISES  OR
 A  SUBSTANTIAL  PART  THEREOF,  OR  TO  CARRY  OUT  SUBSTANTIAL  WORK OR
 CONSTRUCTION ON THE COMMERCIAL  PREMISES  OR  SUBSTANTIAL  PART  THEREOF
 WHICH  HE OR SHE COULD NOT REASONABLY DO WITHOUT OBTAINING POSSESSION OF
 THE COMMERCIAL PREMISES. THE LANDLORD SHALL NOTIFY THE TENANT OF HIS  OR
 HER DECISION TO REOCCUPY THE COMMERCIAL PREMISES AT LEAST ONE YEAR PRIOR
 TO  THE  TERMINATION  OF THE LEASE. IN THE EVENT THAT THE LESSOR FRAUDU-
 LENTLY INVOKES THIS JUSTIFICATION FOR A REFUSAL TO  RENEW  A  COMMERCIAL
 LEASE,  THE  DEFRAUDED  TENANT  MAY  COLLECT TREBLE DAMAGES FOR ANY LOSS
 SUFFERED AS A RESULT OF SUCH ACTION;
   (6) THE CURRENT TENANCY WAS CREATED BY THE SUBLETTING OF THE PROPERTY,
 WHEREBY THE PRIME TENANT DID NOT NOTIFY THE LANDLORD BY  CERTIFIED  MAIL
 OF  THE  SUBTENANT'S EXISTENCE AND DID NOT OBTAIN THE WRITTEN CONSENT OF
 THE LANDLORD. THIS GROUND IS VOID IF THE LANDLORD AND TENANT HAD  AGREED
 IN THE LEASE TO ALLOW SUBLEASING RIGHTS WITHOUT THE CONSENT OF THE LAND-
 LORD  AND  ALL  OBLIGATIONS  OF  THE  PRIME TENANT ON THE ISSUE, WERE IN
 COMPLIANCE;
   (7) IT HAS BEEN DETERMINED BY THE ADMINISTERING AGENCY OR BY  A  CIVIL
 COURT  OF COMPETENT JURISDICTION THAT THE TENANT IS A GROSS AND PERSIST-
 ENT VIOLATOR OF NEW YORK CITY  TAX  LAWS,  OF  ANY  LICENSE  OBLIGATIONS
 RELATED  TO  THE  USE  OF THE PREMISES OR OF ANY LAWS OF THE CITY OF NEW
 YORK; OR

 A. 10281                            8
 
   (8) UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD  INTENDS
 TO  OCCUPY  THE  RETAIL PREMISES IN ORDER TO CARRY OUT ITS OWN BUSINESS,
 WHICH CANNOT BE THE SAME TYPE OF BUSINESS THAT  THE  CURRENT  TENANT  IS
 OPERATING.   THE LANDLORD SHALL NOTIFY THE TENANT OF HIS OR HER DECISION
 TO  REOCCUPY  THE PREMISES AT LEAST ONE HUNDRED EIGHTY DAYS PRIOR TO THE
 TERMINATION OF THE LEASE. IN THE EVENT THAT  THE  LANDLORD  FRAUDULENTLY
 INVOKES  THIS  JUSTIFICATION  FOR A REFUSAL TO RENEW A COMMERCIAL LEASE,
 THE DEFRAUDED TENANT MAY COLLECT TREBLE DAMAGES FOR ANY LOSS SUFFERED AS
 A RESULT OF SUCH ACTION.
   § 22-1211 RETALIATION. NO LANDLORD SHALL IN ANY WAY RETALIATE  AGAINST
 ANY  TENANT  FOR  THE TENANT'S ASSERTION OR EXERCISE OF ANY RIGHTS UNDER
 THIS CHAPTER. ANY SUCH RETALIATION MAY SUBJECT THE LANDLORD  TO  A  SUIT
 FOR ACTUAL AND PUNITIVE DAMAGES, INJUNCTIVE RELIEF, AND ATTORNEYS' FEES.
   §  22-1212  WAIVER.  NO  PROVISION  IN ANY LEASE, RENTAL AGREEMENT, OR
 AGREEMENT MADE IN CONNECTION THEREWITH WHICH WAIVES  OR  DIMINISHES  ANY
 TENANT'S RIGHTS UNDER THIS CHAPTER IS VALID.
   §  22-1213  INCONSISTENCY  WITH  OTHER  LAWS. IF ANY PROVISION OF THIS
 CHAPTER IS INCONSISTENT WITH, IN CONFLICT WITH, OR CONTRARY TO ANY OTHER
 PROVISIONS OF LAW, SUCH PROVISION OF THIS  CHAPTER  SHALL  PREVAIL  OVER
 SUCH OTHER PROVISION.
   § 3. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 4. This act shall take effect on the thirtieth day  after  it  shall
 have  become  a  law.    Effective  immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on  its  effective  date  are  authorized  to  be  made  and
 completed on or before such effective date.