[ ] is old law to be omitted.
LBD11905-07-9
S. 6458 2 A. 8281
seventy-four, in relation to vacancy of certain housing accommodations
and to amend the emergency tenant protection act of nineteen seventy-
four and the administrative code of the city of New York, in relation
to prohibiting a county rent guidelines board from establishing rent
adjustments for class A dwelling units based on certain considerations
(Part C); to amend the emergency tenant protection act of nineteen
seventy-four, in relation to vacancies in certain housing accommo-
dations; and to repeal paragraphs 12 and 13 of subdivision a of
section 5 and section 5-a of section 4 of chapter 576 of the laws of
1974 constituting the emergency tenant protection act of nineteen
seventy-four, paragraph (n) of subdivision 2 of section 2 of chapter
274 of the laws of 1946, constituting the emergency housing rent
control law, and sections 26-504.1, 26-504.2 and 26-504.3 and subpara-
graph (k) of paragraph 2 of subdivision e of section 26-403 of the
administrative code of the city of New York, relating to vacancy
decontrol (Part D); to amend the emergency tenant protection act of
nineteen seventy-four and the administrative code of the city of New
York, in relation to the regulation of rents (Part E); to amend the
emergency tenant protection act of nineteen seventy-four, the adminis-
trative code of the city of New York and the civil practice law and
rules, in relation to investigation of rent overcharge complaints
(Part F); to establish the "statewide tenant protection act of 2019";
and to amend the emergency tenant protection act of nineteen seventy-
four, in relation to expanding rent and eviction protections statewide
(Part G); to amend the administrative code of the city of New York and
the emergency housing rent control law, in relation to the establish-
ment of rent adjustments and prohibition of fuel pass-along charges;
and to repeal certain provisions of the administrative code of the
city of New York relating thereto (Part H); to amend the administra-
tive code of the city of New York, the emergency tenant protection act
of nineteen seventy-four and the emergency housing rent control law,
in relation to recovery of certain housing accommodations by a land-
lord (Part I); to amend the emergency tenant protection act of nine-
teen seventy-four, in relation to not-for-profits' use of certain
residential dwellings (Part J); to amend the emergency tenant
protection act of nineteen seventy-four, the emergency housing rent
control law, and the administrative code of the city of New York, in
relation to a temporary increase in rent in certain cases (Part K); to
amend the public housing law, in relation to enacting the "rent regu-
lation reporting act of 2019" (Part L); to amend the real property
law, the real property actions and proceedings law, the general obli-
gations law and the judiciary law, in relation to enacting the "state-
wide housing security and tenant protection act of 2019"; establishes
the New York state temporary commission on housing security and tenant
protection; and to repeal certain provisions of the real property
actions and proceedings law relating thereto (Part M); to amend the
general business law, in relation to conversions to cooperative or
condominium ownership in the city of New York (Part N); and to amend
the real property law, in relation to the duties and responsibilities
of manufactured home park owners and residents (Part O)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
S. 6458 3 A. 8281
Section 1. This act enacts into law major components of legislation
relating to rent regulation and tenant protection. Each component is
wholly contained within a Part identified as Parts A through O. The
effective date for each particular provision contained within such Part
is set forth in the last section of such Part. Any provision in any
section contained within a Part, including the effective date of the
Part, which makes a reference to a section "of this act", when used in
connection with that particular component, shall be deemed to mean and
refer to the corresponding section of the Part in which it is found.
Section three of this act sets forth the general effective date of this
act.
PART A
Section 1. Short title. This act shall be known and may be cited as
the "Housing Stability and Tenant Protection Act of 2019".
§ 1-a. Section 17 of chapter 576 of the laws of 1974 amending the
emergency housing rent control law relating to the control of and
stabilization of rent in certain cases, as amended by section 1-a of
part A of chapter 20 of the laws of 2015, is amended to read as follows:
§ 17. Effective date. This act shall take effect immediately and
shall remain in full force and effect [until and including the fifteenth
day of June 2019] THEREAFTER; except that sections two and three shall
take effect with respect to any city having a population of one million
or more and section one shall take effect with respect to any other
city, or any town or village whenever the local legislative body of a
city, town or village determines the existence of a public emergency
pursuant to section three of the emergency tenant protection act of
nineteen seventy-four, as enacted by section four of this act, and
provided that the housing accommodations subject on the effective date
of this act to stabilization pursuant to the New York city rent stabili-
zation law of nineteen hundred sixty-nine shall remain subject to such
law [upon the expiration of this act] THEREAFTER.
§ 2. Subdivision 2 of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, as amended by
section 2 of part A of chapter 20 of the laws of 2015, is amended to
read as follows:
2. The provisions of this act, and all regulations, orders and
requirements thereunder shall remain in full force and effect [until and
including June 15, 2019] THEREAFTER.
§ 3. Section 2 of chapter 329 of the laws of 1963 amending the emer-
gency housing rent control law relating to recontrol of rents in Albany,
as amended by section 3 of part A of chapter 20 of the laws of 2015, is
amended to read as follows:
§ 2. This act shall take effect immediately and the provisions of
subdivision 6 of section 12 of the emergency housing rent control law,
as added by this act, shall remain in full force and effect [until and
including June 15, 2019] THEREAFTER.
§ 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
al business law and the administrative code of the city of New York
relating to conversion of residential property to cooperative or condo-
minium ownership in the city of New York, as amended by section 4 of
part A of chapter 20 of the laws of 2015, is amended to read as follows:
§ 10. This act shall take effect immediately; provided, that the
provisions of sections one, two and nine of this act shall remain in
full force and effect [only until and including June 15, 2019] THEREAFT-
S. 6458 4 A. 8281
ER; provided further that the provisions of section three of this act
shall remain in full force and effect only so long as the public emer-
gency requiring the regulation and control of residential rents and
evictions continues as provided in subdivision 3 of section 1 of the
local emergency housing rent control act; provided further that the
provisions of sections four, five, six and seven of this act shall
expire in accordance with the provisions of section 26-520 of the admin-
istrative code of the city of New York as such section of the adminis-
trative code is, from time to time, amended; provided further that the
provisions of section 26-511 of the administrative code of the city of
New York, as amended by this act, which the New York City Department of
Housing Preservation and Development must find are contained in the code
of the real estate industry stabilization association of such city in
order to approve it, shall be deemed contained therein as of the effec-
tive date of this act; and provided further that any plan accepted for
filing by the department of law on or before the effective date of this
act shall continue to be governed by the provisions of section 352-eeee
of the general business law as they had existed immediately prior to the
effective date of this act.
§ 5. Section 4 of chapter 402 of the laws of 1983 amending the general
business law relating to conversion of rental residential property to
cooperative or condominium ownership in certain municipalities in the
counties of Nassau, Westchester and Rockland, as amended by section 5 of
part A of chapter 20 of the laws of 2015, is amended to read as follows:
§ 4. This act shall take effect immediately; provided, that the
provisions of sections one and three of this act shall remain in full
force and effect [only until and including June 15, 2019] THEREAFTER;
and provided further that any plan accepted for filing by the department
of law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eee of the general business
law as they had existed immediately prior to the effective date of this
act.
§ 6. Subdivision 6 of section 46 of chapter 116 of the laws of 1997
constituting the rent regulation reform act of 1997 is REPEALED.
§ 7. This act shall take effect immediately.
PART B
Section 1. Paragraph 5-a of subdivision c of section 26-511 of the
administrative code of the city of New York is REPEALED.
§ 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four is REPEALED.
§ 3. Subdivision f of section 26-512 of the administrative code of the
city of New York is REPEALED.
§ 4. Subdivision g of section 6 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four is REPEALED.
§ 5. Subdivision 9 of section 5 of chapter 274 of the laws of 1946,
constituting the emergency housing rent control law is REPEALED.
§ 6. Section 26-403.2 of the administrative code of the city of New
York is REPEALED.
§ 7. The sixth undesignated paragraph of subdivision 5 of section 1 of
chapter 21 of the laws of 1962, constituting the local emergency rent
control act, as amended by chapter 82 of the laws of 2003, is REPEALED.
§ 8. This act shall take effect immediately.
S. 6458 5 A. 8281
PART C
Section 1. Section 26-510 of the administrative code of the city of
New York is amended by adding a new subdivision j to read as follows:
J. NOTWITHSTANDING ANY OTHER PROVISION OF THIS LAW, THE ADJUSTMENT FOR
VACANCY LEASES COVERED BY THE PROVISIONS OF THIS LAW SHALL BE DETERMINED
EXCLUSIVELY PURSUANT TO THIS SECTION. COUNTY RENT GUIDELINES BOARDS
SHALL NO LONGER PROMULGATE ADJUSTMENTS FOR VACANCY LEASES UNLESS OTHER-
WISE AUTHORIZED BY THIS CHAPTER.
§ 2. Section 4 of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, is amended by adding a new subdivision e to read as follows:
E. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE ADJUSTMENT FOR
VACANCY LEASES COVERED BY THE PROVISIONS OF THIS ACT SHALL BE DETERMINED
EXCLUSIVELY PURSUANT TO SECTION TEN OF THIS ACT. COUNTY RENT GUIDELINES
BOARDS SHALL NO LONGER PROMULGATE ADJUSTMENTS FOR VACANCY LEASES.
§ 3. The opening paragraph of subdivision b of section 4 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, is amended to read as follows:
A county rent guidelines board shall establish [annually] ANNUAL
guidelines for rent adjustments which, at its sole discretion may be
varied and different for and within the several zones and jurisdictions
of the board, and in determining whether rents for housing accommo-
dations as to which an emergency has been declared pursuant to this act
shall be adjusted, shall consider among other things (1) the economic
condition of the residential real estate industry in the affected area
including such factors as the prevailing and projected (i) real estate
taxes and sewer and water rates, (ii) gross operating maintenance costs
(including insurance rates, governmental fees, cost of fuel and labor
costs), (iii) costs and availability of financing (including effective
rates of interest), (iv) over-all supply of housing accommodations and
over-all vacancy rates, (2) relevant data from the current and projected
cost of living indices for the affected area, (3) such other data as may
be made available to it. As soon as practicable after its creation and
thereafter not later than July first of each year, a rent guidelines
board shall file with the state division of housing and community
renewal its findings for the preceding calendar year, and shall accompa-
ny such findings with a statement of the maximum rate or rates of rent
adjustment, if any, for one or more classes of accommodation subject to
this act, authorized for leases or other rental agreements commencing
during the next succeeding twelve months. The standards for rent adjust-
ments may be applicable for the entire county or may be varied according
to such zones or jurisdictions within such county as the board finds
necessary to achieve the purposes of this subdivision. A COUNTY RENT
GUIDELINES BOARD SHALL NOT ESTABLISH ANNUAL GUIDELINES FOR RENT ADJUST-
MENTS BASED ON THE CURRENT RENTAL COST OF A UNIT OR ON THE AMOUNT OF
TIME THAT HAS ELAPSED SINCE ANOTHER RENT INCREASE WAS AUTHORIZED PURSU-
ANT TO THIS CHAPTER.
§ 4. Subdivision b of section 26-510 of the administrative code of the
city of New York is amended to read as follows:
b. The rent guidelines board shall establish [annually] ANNUAL guide-
lines for rent adjustments, and in determining whether rents for housing
accommodations subject to the emergency tenant protection act of nine-
teen seventy-four or this law shall be adjusted shall consider, among
other things (1) the economic condition of the residential real estate
S. 6458 6 A. 8281
industry in the affected area including such factors as the prevailing
and projected (i) real estate taxes and sewer and water rates, (ii)
gross operating maintenance costs (including insurance rates, govern-
mental fees, cost of fuel and labor costs), (iii) costs and availability
of financing (including effective rates of interest), (iv) over-all
supply of housing accommodations and over-all vacancy rates, (2) rele-
vant data from the current and projected cost of living indices for the
affected area, (3) such other data as may be made available to it. Not
later than July first of each year, the rent guidelines board shall file
with the city clerk its findings 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 one or more classes of accommo-
dations subject to this law, authorized for leases or other rental
agreements commencing on the next succeeding October first or within the
twelve months thereafter. Such findings and statement shall be published
in the City Record. THE RENT GUIDELINES BOARD SHALL NOT ESTABLISH ANNU-
AL GUIDELINES FOR RENT ADJUSTMENTS BASED ON THE CURRENT RENTAL COST OF A
UNIT OR ON THE AMOUNT OF TIME THAT HAS ELAPSED SINCE ANOTHER RENT
INCREASE WAS AUTHORIZED PURSUANT TO THIS TITLE.
§ 5. This act shall take effect immediately.
PART D
Section 1. Legislative findings and declaration of emergency. The
legislature hereby finds and declares that the serious public emergency
which led to the enactment of the existing laws regulating residential
rents and evictions continues to exist; that such laws would better
serve the public interest if certain changes were made thereto, includ-
ing the continued regulation of certain housing accommodations that
become vacant.
The legislature further recognizes that severe disruption of the
rental housing market has occurred and threatens to be exacerbated as a
result of the present state of the law in relation to the deregulation
of housing accommodations upon vacancy. The situation has permitted
speculative and profiteering practices and has brought about the loss of
vital and irreplaceable affordable housing for working persons and fami-
lies.
The legislature therefore declares that in order to prevent uncertain-
ty, potential hardship and dislocation of tenants living in housing
accommodations subject to government regulations as to rentals and
continued occupancy as well as those not subject to such regulation, the
provisions of this act are necessary to protect the public health, safe-
ty and general welfare. The necessity in the public interest for the
provisions hereinafter enacted is hereby declared as a matter of legis-
lative determination.
§ 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
laws of 1946, constituting the emergency housing rent control law, is
REPEALED.
§ 3. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, is REPEALED.
§ 4. Subparagraph (k) of paragraph 2 of subdivision e of section
26-403 of the administrative code of the city of New York is REPEALED.
§ 5. Sections 26-504.1, 26-504.2 and 26-504.3 of the administrative
code of the city of New York are REPEALED.
S. 6458 7 A. 8281
§ 6. Paragraph 12 of subdivision a of section 5 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four, is REPEALED.
§ 7. Section 5-a of chapter 576 of the laws of 1974, constituting the
emergency tenant protection act of nineteen seventy-four, is REPEALED.
§ 8. This act shall take effect immediately.
PART E
Section 1. Subdivision (a-2) of section 10 of section 4 of chapter 576
of the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, as amended by section 11 of part A of chapter 20
of the laws of 2015, is amended to read as follows:
(a-2) [Provides that where] WHERE the amount of rent charged to and
paid by the tenant is less than the legal regulated rent for the housing
accommodation, the amount of rent for such housing accommodation which
may be charged [upon renewal or] upon vacancy thereof, may, at the
option of the owner, be based upon such previously established legal
regulated rent, as adjusted by the most recent applicable guidelines
increases and other increases authorized by law. [Such housing accommo-
dation shall be excluded from the provisions of this act pursuant to
paragraph thirteen of subdivision a of section five of this act when
subsequent to vacancy: (i) such legal regulated rent is two thousand
five hundred dollars per month, or more, for any housing accommodation
that is, or becomes, vacant after the effective date of the rent act of
2011 but prior to the effective date of the rent act of 2015 or (ii)
such legal regulated rent is two thousand seven hundred dollars per
month or more for any housing accommodation that is or becomes vacant on
or after the rent act of 2015; starting on January 1, 2016, and annually
thereafter, the maximum legal regulated rent for this deregulation
threshold, shall also be increased by the same percent as the most
recent one year renewal adjustment, adopted by the applicable rent
guidelines board pursuant to the rent stabilization law.] ANY TENANT WHO
IS SUBJECT TO A LEASE ON OR AFTER THE EFFECTIVE DATE OF A CHAPTER OF THE
LAWS OF TWO THOUSAND NINETEEN WHICH AMENDED THIS SUBDIVISION, OR IS OR
WAS ENTITLED TO RECEIVE A RENEWAL OR VACANCY LEASE ON OR AFTER SUCH
DATE, UPON RENEWAL OF SUCH LEASE, THE AMOUNT OF RENT FOR SUCH HOUSING
ACCOMMODATION THAT MAY BE CHARGED AND PAID SHALL BE NO MORE THAN THE
RENT CHARGED TO AND PAID BY THE TENANT PRIOR TO THAT RENEWAL, AS
ADJUSTED BY THE MOST RECENT APPLICABLE GUIDELINES INCREASES AND ANY
OTHER INCREASES AUTHORIZED BY LAW. PROVIDED, HOWEVER, THAT FOR BUILD-
INGS THAT ARE SUBJECT TO THIS STATUTE BY VIRTUE OF A REGULATORY AGREE-
MENT WITH A LOCAL GOVERNMENT AGENCY AND WHICH BUILDINGS RECEIVE FEDERAL
PROJECT BASED RENTAL ASSISTANCE ADMINISTERED BY THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR A STATE OR LOCAL SECTION
EIGHT ADMINISTERING AGENCY, WHERE THE RENT SET BY THE FEDERAL, STATE OR
LOCAL GOVERNMENTAL AGENCY IS LESS THAN THE LEGAL REGULATED RENT FOR THE
HOUSING ACCOMMODATION, THE AMOUNT OF RENT FOR SUCH HOUSING ACCOMMODATION
WHICH MAY BE CHARGED UPON RENEWAL OR UPON VACANCY THEREOF, MAY BE BASED
UPON SUCH PREVIOUSLY ESTABLISHED LEGAL REGULATED RENT, AS ADJUSTED BY
THE MOST RECENT APPLICABLE GUIDELINES INCREASES OR OTHER INCREASES
AUTHORIZED BY LAW; AND FURTHER PROVIDED THAT SUCH VACANCY SHALL NOT BE
CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT OF THE OWNER, TO MAINTAIN
THE HOUSING ACCOMMODATION IN COMPLIANCE WITH THE WARRANTY OF HABITABILI-
TY SET FORTH IN SUBDIVISION ONE OF SECTION TWO HUNDRED THIRTY-FIVE-B OF
THE REAL PROPERTY LAW.
S. 6458 8 A. 8281
§ 2. Paragraph 14 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 12 of part A
of chapter 20 of the laws of 2015, is amended to read as follows:
(14) [provides that] where the amount of rent charged to and paid by
the tenant is less than the legal regulated rent for the housing accom-
modation, the amount of rent for such housing accommodation which may be
charged [upon renewal or] upon vacancy thereof, may, at the option of
the owner, be based upon such previously established legal regulated
rent, as adjusted by the most recent applicable guidelines increases and
any other increases authorized by law. [Such housing accommodation
shall be excluded from the provisions of this code pursuant to section
26-504.2 of this chapter when, subsequent to vacancy: (i) such legal
regulated rent prior to vacancy is two thousand five hundred dollars per
month, or more, for any housing accommodation that is or becomes vacant
after the effective date of the rent act of 2011 but prior to the effec-
tive date of the rent act of 2015 or (ii) such legal regulated rent is
two thousand seven hundred dollars per month or more, provided, however
that on January 1, 2016, and annually thereafter, the maximum legal
regulated rent for this deregulation threshold shall be adjusted by the
same percentage as the most recent one year renewal adjustment as
adjusted by the relevant rent guidelines board, for any housing accommo-
dation that is or becomes vacant on or after the rent act of 2015.] ANY
TENANT WHO IS SUBJECT TO A LEASE ON OR AFTER THE EFFECTIVE DATE OF A
CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN WHICH AMENDED THIS PARA-
GRAPH, OR IS OR WAS ENTITLED TO RECEIVE A RENEWAL OR VACANCY LEASE ON OR
AFTER SUCH DATE, UPON RENEWAL OF SUCH LEASE, THE AMOUNT OF RENT FOR SUCH
HOUSING ACCOMMODATION THAT MAY BE CHARGED AND PAID SHALL BE NO MORE THAN
THE RENT CHARGED TO AND PAID BY THE TENANT PRIOR TO THAT RENEWAL, AS
ADJUSTED BY THE MOST RECENT APPLICABLE GUIDELINES INCREASES AND ANY
OTHER INCREASES AUTHORIZED BY LAW. PROVIDED, HOWEVER, THAT FOR BUILD-
INGS THAT ARE SUBJECT TO THIS STATUTE BY VIRTUE OF A REGULATORY AGREE-
MENT WITH A LOCAL GOVERNMENT AGENCY AND WHICH BUILDINGS RECEIVE FEDERAL
PROJECT BASED RENTAL ASSISTANCE ADMINISTERED BY THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR A STATE OR LOCAL SECTION
EIGHT ADMINISTERING AGENCY, WHERE THE RENT SET BY THE FEDERAL, STATE OR
LOCAL GOVERNMENTAL AGENCY IS LESS THAN THE LEGAL REGULATED RENT FOR THE
HOUSING ACCOMMODATION, THE AMOUNT OF RENT FOR SUCH HOUSING ACCOMMODATION
WHICH MAY BE CHARGED UPON RENEWAL OR UPON VACANCY THEREOF, MAY BE BASED
UPON SUCH PREVIOUSLY ESTABLISHED LEGAL REGULATED RENT, AS ADJUSTED BY
THE MOST RECENT APPLICABLE GUIDELINES INCREASES AND OTHER INCREASES
AUTHORIZED BY LAW; AND FURTHER PROVIDED THAT SUCH VACANCY SHALL NOT BE
CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT OF THE OWNER, TO MAINTAIN
THE HOUSING ACCOMMODATION IN COMPLIANCE WITH THE WARRANTY OF HABITABILI-
TY SET FORTH IN SUBDIVISION ONE OF SECTION TWO HUNDRED THIRTY-FIVE-B OF
THE REAL PROPERTY LAW.
§ 3. This act shall take effect immediately; provided, further, that
the amendments to section 26-511 of chapter 4 of title 26 of the admin-
istrative 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.
PART F
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
S. 6458 9 A. 8281
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. 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.]
S. 6458 10 A. 8281
(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] OR IN A COURT OF COMPETENT JURISDICTION AT ANY TIME, HOWEV-
ER 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-
S. 6458 11 A. 8281
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] SIX years prior to the most recent registration 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 RENTAL
HISTORY AND DETERMINE LEGAL REGULATED RENTS PURSUANT TO THIS SUBDIVI-
SION.
(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
S. 6458 12 A. 8281
(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
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-
S. 6458 13 A. 8281
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
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
OR COURT OF COMPETENT JURISDICTION 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] 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] OR 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 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 accommo-
dation prior to the four-year period preceding the filing of a complaint
pursuant 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] SHALL 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.
S. 6458 14 A. 8281
(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
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
S. 6458 15 A. 8281
(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.
§ 7. This act shall take effect immediately and shall apply to any
claims pending or filed on and after such date; provided that the amend-
ments 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.
PART G
Section 1. Short title. This act shall be known and may be cited as
the "statewide tenant protection act of 2019."
§ 2. Section 2 of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, is amended to read as follows:
§ 2. Legislative finding. The legislature hereby finds and declares
that a serious public emergency continues to exist in the housing of a
considerable number of persons in the state of New York [which emergency
was at its inception created by war, the effects of war and the after-
math of hostilities], that such emergency [necessitated] NECESSITATES
the intervention of federal, state and local government in order to
prevent speculative, unwarranted and abnormal increases in rents; that
there continues to exist in many areas of the state an acute shortage of
housing accommodations caused by continued high demand, attributable in
part to new household formations and decreased supply, in large measure
attributable to reduced availability of federal subsidies, and increased
costs of construction and other inflationary factors; that a substantial
number of persons residing in housing not presently subject to the
provisions of THIS ACT OR the emergency housing rent control law or the
local emergency housing rent control act are being charged excessive and
unwarranted rents and rent increases; that preventive action by the
legislature continues to be imperative in order to prevent exaction of
unjust, unreasonable and oppressive rents and rental agreements and to
forestall profiteering, speculation and other disruptive practices tend-
ing to produce threats to the public health, safety and general welfare;
that in order to prevent uncertainty, hardship and dislocation, the
provisions of this act are necessary and designed to protect the public
S. 6458 16 A. 8281
health, safety and general welfare; that the transition from regulation
to a normal market of free bargaining between landlord and tenant, while
the ultimate objective of state policy, must take place with due regard
for such emergency; and that the policy herein expressed shall be
subject to determination of the existence of a public emergency requir-
ing the regulation of residential rents within any city, town or village
by the local legislative body of such city, town or village.
§ 3. Section 14 of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, is amended to read as follows:
§ 14. Application of act. The provisions of this act shall [only] be
applicable:
a. in the city of New York; and
b. in [the counties of Nassau, Westchester and Rockland] ALL COUNTIES
WITHIN THE STATE OF NEW YORK OUTSIDE THE CITY OF NEW YORK and shall
become and remain effective only in a city, town or village located
therein as provided in section three of this act.
§ 4. Subdivision a of section 5 of section 4 of chapter 576 of the
laws of 1974 constituting the emergency tenant protection act of nine-
teen seventy-four is amended by adding a new paragraph 5-a to read as
follows:
(5-A) HOUSING ACCOMMODATIONS LOCATED OUTSIDE OF A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE IN ANY SUCH BUILDINGS THAT WERE VACANT AND
UNOCCUPIED ON JUNE FIRST, TWO THOUSAND NINETEEN AND HAD BEEN VACANT AND
UNOCCUPIED FOR AT LEAST THE ONE-YEAR PERIOD IMMEDIATELY PRECEDING SUCH
DATE;
§ 5. Subdivision a of section 4 of section 4 of chapter 576 of the
laws of 1974 constituting the emergency tenant protection act of nine-
teen hundred seventy-four, as amended by chapter 349 of the laws of
1979, is amended and a new subdivision a-1 is added to read as follows:
a. In each county wherein any city having a population of less than
one million or any town or village has determined the existence of an
emergency pursuant to section three of this act, there shall be created
a rent guidelines board to consist of nine members appointed by the
commissioner of housing and community renewal upon recommendation of the
county legislature [which], EXCEPT THAT A RENT GUIDELINES BOARD CREATED
SUBSEQUENT TO THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
SAND NINETEEN THAT AMENDED THIS SECTION SHALL CONSIST OF NINE MEMBERS
APPOINTED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL UPON
RECOMMENDATIONS OF THE LOCAL LEGISLATIVE BODY OF EACH CITY HAVING A
POPULATION OF LESS THAN ONE MILLION OR TOWN OR VILLAGE WHICH HAS DETER-
MINED THE EXISTENCE OF AN EMERGENCY PURSUANT TO SECTION THREE OF THIS
ACT. SUCH recommendation shall be made within thirty days after the
first local declaration of an emergency in such county; two such members
shall be representative of tenants, two shall be representative of
owners of property, and five shall be public members each of whom shall
have had at least five years experience in either finance, economics or
housing. One public member shall be designated by the commissioner to
serve as chairman and shall hold no other public office. No member,
officer or employee of any municipal rent regulation agency or the state
division of housing and community renewal and no person who owns or
manages real estate covered by this law or who is an officer of any
owner or tenant organization shall serve on a rent guidelines board. One
public member, one member representative of tenants and one member
representative of owners shall serve for a term ending two years from
January first next succeeding the date of their appointment; one public
S. 6458 17 A. 8281
member, one member representative of tenants and one member represen-
tative of owners shall serve for terms ending three years from the Janu-
ary first next succeeding the date of their appointment and three public
members shall serve for terms ending four years from January first next
succeeding the dates of their appointment. Thereafter, all members
shall serve for terms of four years each. Members shall continue in
office until their successors have been appointed and qualified. The
commissioner shall fill any vacancy which may occur by reason of death,
resignation or otherwise in a manner consistent with the original
appointment. A member may be removed by the commissioner for cause, but
not without an opportunity to be heard in person or by counsel, in his
defense, upon not less than ten days notice. Compensation for the
members of the board shall be at the rate of one hundred dollars per
day, for no more than twenty days a year, except that the chairman shall
be compensated at the rate of one hundred twenty-five dollars a day for
no more than thirty days a year. The board shall be provided staff
assistance by the division of housing and community renewal. The compen-
sation of such members and the costs of staff assistance shall be paid
by the division of housing and community renewal which shall be reim-
bursed in the manner prescribed in section four of this act. The local
legislative body of each city having a population of less than one
million and each town and village in which an emergency has been deter-
mined to exist as herein provided shall be authorized to designate one
person who shall be representative of tenants and one person who shall
be representative of owners of property to serve at its pleasure and
without compensation to advise and assist the county rent guidelines
board in matters affecting the adjustment of rents for housing accommo-
dations in such city, town or village as the case may be.
A-1. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION A OF THIS SECTION
TO THE CONTRARY, IN EACH COUNTY THAT BECAME SUBJECT TO THIS ACT PURSUANT
TO THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS
SECTION, THE COMMISSIONER SHALL RECONSTITUTE THE EXISTING RENT GUIDE-
LINES BOARD SUBSEQUENT TO ANY INITIAL LOCAL DECLARATION OF EMERGENCY
WITHIN SUCH COUNTY FOR THE PURPOSE OF ENSURING REPRESENTATION OF ALL
CITIES HAVING A POPULATION OF LESS THAN ONE MILLION AND ALL TOWNS AND
VILLAGES WITHIN SUCH COUNTY HAVING DETERMINED THE EXISTENCE OF AN EMER-
GENCY IN ACCORDANCE WITH THIS ACT ARE REPRESENTED, PURSUANT TO RULES AND
REGULATIONS PROMULGATED BY THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL.
§ 6. Severability clause. If any provision of this act or the applica-
tion there shall, for any reason be adjudged by any court of competent
jurisdiction to be invalid or unconstitutional, such judgement shall not
affect, impair or invalidate the remainder of this act, but shall be
confined in its operation to the provision thereof directly involved in
the controversy in which the judgement shall have been rendered;
provided, however, that in the event that the entire system of rent
control or stabilization shall be finally adjudged invalid or unconsti-
tutional by a court of competent jurisdiction because of the operation
of any provision of this act, such provision shall be null, void and
without effect, and all other provisions of this act which can be given
effect without such invalid provision, as well as provisions of any
other law, relating to the control of or stabilization of rent, as in
effect prior to the enactment of this act as otherwise amended by this
act, shall continue in full force and effect for the period of effec-
tiveness set forth in section 17 of chapter 576 of the laws of 1974,
S. 6458 18 A. 8281
constituting the emergency tenant protection act of nineteen seventy-
four, as amended.
§ 7. This act shall take effect immediately.
PART H
Section 1. Paragraph 5 of subdivision a of section 26-405 of the
administrative code of the city of New York is amended to read as
follows:
(5) Where a maximum rent established pursuant to this chapter on or
after January first, nineteen hundred seventy-two, is higher than the
previously existing maximum rent, the landlord may not collect AN
INCREASE FROM A TENANT IN OCCUPANCY IN ANY ONE YEAR PERIOD OF more than
THE LESSER OF EITHER seven and one-half percentum [increase from a
tenant in occupancy on such date in any one year period, provided howev-
er, that where] OR AN AVERAGE OF THE PREVIOUS FIVE YEARS OF ONE-YEAR
RENT ADJUSTMENTS ON RENT STABILIZED APARTMENTS AS ESTABLISHED BY THE
RENT GUIDELINES BOARD, PURSUANT TO SUBDIVISION B OF SECTION 26-510 OF
THIS TITLE. IF the period for which the rent is established exceeds one
year, regardless of how the collection thereof is averaged over such
period, the rent the landlord shall be entitled to receive during the
first twelve months shall not be increased by more than THE LESSER OF
EITHER seven and one-half percentum OR AN AVERAGE OF THE PREVIOUS FIVE
YEARS OF ONE-YEAR RENT ADJUSTMENTS ON RENT STABILIZED APARTMENTS AS
ESTABLISHED BY THE RENT GUIDELINES BOARD, PURSUANT TO SUBDIVISION B OF
SECTION 26-510 OF THIS TITLE, over the previous rent [and]. ANY addi-
tional annual rents shall not exceed THE LESSER OF EITHER seven and
one-half percentum OR AN AVERAGE OF THE PREVIOUS FIVE YEARS OF ONE-YEAR
RENT ADJUSTMENTS ON RENT STABILIZED APARTMENTS AS ESTABLISHED BY THE
RENT GUIDELINES BOARD, PURSUANT TO SUBDIVISION B OF SECTION 26-510 OF
THIS TITLE, of the rent paid during the previous year. Notwithstanding
any of the foregoing limitations in this paragraph five, maximum rent
shall be increased if ordered by the agency pursuant to subparagraphs
(d), (e), (f), (g), (h), (i), (k), [(l),] OR (m) [or (n)] of paragraph
one of subdivision g of this section. [Commencing January first, nine-
teen hundred eighty, rent adjustments pursuant to subparagraph (n) of
paragraph one of subdivision g of this section shall be excluded from
the maximum rent when computing the seven and one-half percentum
increase authorized by this paragraph five.] Where a housing accommo-
dation is vacant on January first, nineteen hundred seventy-two, or
becomes vacant thereafter by voluntary surrender of possession by the
tenants, the maximum rent established for such accommodations may be
collected.
§ 2. Subparagraphs (l) and (n) of paragraph 1 of subdivision g of
section 26-405 of the administrative code of the city of New York are
REPEALED.
§ 3. Section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, is amended by adding a new subdivi-
sion 9 to read as follows:
9. NO ANNUAL RENT INCREASE AUTHORIZED PURSUANT TO THIS ACT SHALL
EXCEED THE AVERAGE OF THE PREVIOUS FIVE ANNUAL RENTAL ADJUSTMENTS
AUTHORIZED BY A RENT GUIDELINES BOARD FOR A RENT STABILIZED UNIT PURSU-
ANT TO SECTION 4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN
SEVENTY-FOUR.
§ 4. The administrative code of the city of New York is amended by
adding a new section 26-407.1 to read as follows:
S. 6458 19 A. 8281
§ 26-407.1 FUEL PASS-ALONG TO TENANTS UNDER RENT CONTROL PROHIBITED.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE, REGULATION, CHARTER OR
ADMINISTRATIVE CODE, TENANTS OF HOUSING ACCOMMODATIONS WHICH ARE SUBJECT
TO RENT CONTROL UNDER THIS CHAPTER SHALL NOT BE SUBJECT TO A FUEL
ADJUSTMENT OR PASS-ALONG INCREASE IN RENT AND ANY SUCH INCREASE TO SUCH
TENANT SHALL BE NULL AND VOID.
§ 5. This act shall take effect immediately; provided that the amend-
ments to section 26-405 of the city rent and rehabilitation law made by
section one of this act shall remain in full force and effect only as
long as the public emergency requiring the regulation and control of
residential rents and evictions continues, as provided in subdivision 3
of section 1 of the local emergency housing rent control act; and
provided further that the addition of section 26-407.1 to the city rent
and rehabilitation law made by section four of this act shall remain in
full force and effect only as long as the public emergency requiring the
regulation and control of residential rents and evictions continues, as
provided in subdivision 3 of section 1 of the local emergency housing
rent control act.
PART I
Section 1. Paragraph 1 of subdivision b of section 26-408 of the
administrative code of the city of New York is amended to read as
follows:
(1) The landlord seeks in good faith to recover possession of a hous-
ing accommodation because of immediate and compelling necessity for his
or her own personal use and occupancy AS HIS OR HER PRIMARY RESIDENCE or
for the use and occupancy of his or her immediate family AS THEIR PRIMA-
RY RESIDENCE provided, however, that this subdivision shall PERMIT
RECOVERY OF ONLY ONE HOUSING ACCOMMODATION AND SHALL not apply where a
member of the household lawfully occupying the housing accommodation is
sixty-two years of age or older, has been a tenant in a housing accommo-
dation in that building for [twenty] FIFTEEN years or more, or has an
impairment which results from anatomical, physiological or psychological
conditions, other than addiction to alcohol, gambling, or any controlled
substance, which are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in any substantial gainful
employment; PROVIDED, FURTHER, THAT A TENANT REQUIRED TO SURRENDER A
HOUSING ACCOMMODATION BY VIRTUE OF THE OPERATION OF SUBDIVISION G OR H
OF THIS SECTION SHALL HAVE A CAUSE OF ACTION IN ANY COURT OF COMPETENT
JURISDICTION FOR DAMAGES, DECLARATORY, AND INJUNCTIVE RELIEF AGAINST A
LANDLORD OR PURCHASER OF THE PREMISES WHO MAKES A FRAUDULENT STATEMENT
REGARDING A PROPOSED USE OF THE HOUSING ACCOMMODATION. IN ANY ACTION OR
PROCEEDING BROUGHT PURSUANT TO THIS PARAGRAPH A PREVAILING TENANT SHALL
BE ENTITLED TO RECOVERY OF ACTUAL DAMAGES, AND REASONABLE ATTORNEYS'
FEES; or
§ 2. Subparagraph (b) of paragraph 9 of subdivision c of section
26-511 of the administrative code of the city of New York is amended to
read as follows:
(b) where he or she seeks to recover possession of one [or more]
dwelling [units] UNIT BECAUSE OF IMMEDIATE AND COMPELLING NECESSITY for
his or her own personal use and occupancy as his or her primary resi-
dence [in the city of New York and/or] OR for the use and occupancy of a
member of his or her immediate family as his or her primary residence
[in the city of New York], provided however, that this subparagraph
S. 6458 20 A. 8281
shall PERMIT RECOVERY OF ONLY ONE DWELLING UNIT AND SHALL not apply
where a tenant or the spouse of a tenant lawfully occupying the dwelling
unit is sixty-two years of age or older, HAS BEEN A TENANT IN A DWELLING
UNIT IN THAT BUILDING FOR FIFTEEN YEARS OR MORE, or has an impairment
which results from anatomical, physiological or psychological condi-
tions, other than addiction to alcohol, gambling, or any controlled
substance, which are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in any substantial gainful
employment, unless such owner offers to provide and if requested,
provides an equivalent or superior housing accommodation at the same or
lower stabilized rent in a closely proximate area. The provisions of
this subparagraph shall only permit one of the individual owners of any
building to recover possession of one [or more] dwelling [units] UNIT
for his or her own personal use and/or for that of his or her immediate
family. [Any] A dwelling unit recovered by an owner pursuant to this
subparagraph shall not for a period of three years be rented, leased,
subleased or assigned to any person other than a person for whose bene-
fit recovery of the dwelling unit is permitted pursuant to this subpara-
graph or to the tenant in occupancy at the time of recovery under the
same terms as the original lease; PROVIDED, HOWEVER, THAT A TENANT
REQUIRED TO SURRENDER A HOUSING ACCOMMODATION BY VIRTUE OF THE OPERATION
OF SUBDIVISION G OR H OF SECTION 26-408 OF THIS TITLE SHALL HAVE A CAUSE
OF ACTION IN ANY COURT OF COMPETENT JURISDICTION FOR DAMAGES, DECLARATO-
RY, AND INJUNCTIVE RELIEF AGAINST A LANDLORD OR PURCHASER OF THE PREM-
ISES WHO MAKES A FRAUDULENT STATEMENT REGARDING A PROPOSED USE OF THE
HOUSING ACCOMMODATION. IN ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO
THIS SUBPARAGRAPH A PREVAILING TENANT SHALL BE ENTITLED TO RECOVERY OF
ACTUAL DAMAGES, AND REASONABLE ATTORNEYS' FEES. This subparagraph shall
not be deemed to establish or eliminate any claim that the former tenant
of the dwelling unit may otherwise have against the owner. Any such
rental, lease, sublease or assignment during such period to any other
person may be subject to a penalty of a forfeiture of the right to any
increases in residential rents in such building for a period of three
years; or
§ 3. Subdivision a of section 10 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 234 of the laws of 1984, is
amended to read as follows:
a. For cities having a population of less than one million and towns
and villages, the state division of housing and community renewal shall
be empowered to implement this act by appropriate regulations. Such
regulations may encompass such speculative or manipulative practices or
renting or leasing practices as the state division of housing and commu-
nity renewal determines constitute or are likely to cause circumvention
of this act. Such regulations shall prohibit practices which are likely
to prevent any person from asserting any right or remedy granted by this
act, including but not limited to retaliatory termination of periodic
tenancies and shall require owners to grant a new one or two year vacan-
cy or renewal lease at the option of the tenant, except where a mortgage
or mortgage commitment existing as of the local effective date of this
act provides that the owner shall not grant a one-year lease; and shall
prescribe standards with respect to the terms and conditions of new and
renewal leases, additional rent and such related matters as security
deposits, advance rental payments, the use of escalator clauses in leas-
es and provision for increase in rentals for garages and other ancillary
S. 6458 21 A. 8281
facilities, so as to insure that the level of rent adjustments author-
ized under this law will not be subverted and made ineffective. Any
provision of the regulations permitting an owner to refuse to renew a
lease on grounds that the owner seeks to recover possession of [the] A
housing accommodation for his OR HER own use and occupancy or for the
use and occupancy of his OR HER immediate family shall PERMIT RECOVERY
OF ONLY ONE HOUSING ACCOMMODATION, SHALL require that an owner demon-
strate immediate and compelling need AND THAT THE HOUSING ACCOMMODATION
WILL BE THE PROPOSED OCCUPANTS' PRIMARY RESIDENCE and shall not apply
where a member of the housing accommodation is sixty-two years of age or
older, has been a tenant in a housing accommodation in that building for
[twenty] FIFTEEN years or more, or has an impairment which results from
anatomical, physiological or psychological conditions, other than
addiction to alcohol, gambling, or any controlled substance, which are
demonstrable by medically acceptable clinical and laboratory diagnostic
techniques, and which are expected to be permanent and which prevent the
tenant from engaging in any substantial gainful employment; PROVIDED,
HOWEVER, THAT A TENANT REQUIRED TO SURRENDER A HOUSING ACCOMMODATION BY
VIRTUE OF THE OPERATION OF SUBDIVISION G OR H OF SECTION 26-408 OF THE
ADMINISTRATIVE CODE OF THE CITY OF NEW YORK SHALL HAVE A CAUSE OF ACTION
IN ANY COURT OF COMPETENT JURISDICTION FOR DAMAGES, DECLARATORY, AND
INJUNCTIVE RELIEF AGAINST A LANDLORD OR PURCHASER OF THE PREMISES WHO
MAKES A FRAUDULENT STATEMENT REGARDING A PROPOSED USE OF THE HOUSING
ACCOMMODATION. IN ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO THIS
SUBDIVISION A PREVAILING TENANT SHALL BE ENTITLED TO RECOVERY OF ACTUAL
DAMAGES, AND REASONABLE ATTORNEYS' FEES.
§ 4. Paragraph (a) of subdivision 2 of section 5 of chapter 274 of the
laws of 1946, constituting the emergency housing rent control law, as
amended by chapter 234 of the laws of 1984, is amended to read as
follows:
(a) the landlord seeks in good faith to recover possession of A hous-
ing [accommodations] ACCOMMODATION because of immediate and compelling
necessity for his OR HER own personal use and occupancy AS HIS OR HER
PRIMARY RESIDENCE or for the use and occupancy of his OR HER immediate
family AS THEIR PRIMARY RESIDENCE; provided, however, this subdivision
shall PERMIT RECOVERY OF ONLY ONE HOUSING ACCOMMODATION AND SHALL not
apply where a member of the household lawfully occupying the housing
accommodation is sixty-two years of age or older, has been a tenant in a
housing accommodation in that building for [twenty] FIFTEEN years or
more, or has an impairment which results from anatomical, physiological
or psychological conditions, other than addiction to alcohol, gambling,
or any controlled substance, which are demonstrable by medically accept-
able clinical and laboratory diagnostic techniques, and which are
expected to be permanent and which prevent the tenant from engaging in
any substantial gainful employment; PROVIDED, HOWEVER, THAT A TENANT
REQUIRED TO SURRENDER A HOUSING ACCOMMODATION BY VIRTUE OF THE OPERATION
OF SUBDIVISION G OR H OF SECTION 26-408 OF THE ADMINISTRATIVE CODE OF
THE CITY OF NEW YORK SHALL HAVE A CAUSE OF ACTION IN ANY COURT OF COMPE-
TENT JURISDICTION FOR DAMAGES, DECLARATORY, AND INJUNCTIVE RELIEF
AGAINST A LANDLORD OR PURCHASER OF THE PREMISES WHO MAKES A FRAUDULENT
STATEMENT REGARDING A PROPOSED USE OF THE HOUSING ACCOMMODATION. IN ANY
ACTION OR PROCEEDING BROUGHT PURSUANT TO THIS PARAGRAPH A PREVAILING
TENANT SHALL BE ENTITLED TO RECOVERY OF ACTUAL DAMAGES, AND REASONABLE
ATTORNEYS' FEES; or
§ 5. This act shall take effect immediately and shall apply to any
tenant in possession at or after the time it takes effect, regardless of
S. 6458 22 A. 8281
whether the landlord's application for an order, refusal to renew a
lease or refusal to extend or renew a tenancy took place before this act
shall have taken effect, provided that:
a. the amendments to section 26-408 of the city rent and rehabili-
tation law made by section one of this act shall remain in full force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing rent control
act; and
b. the amendments to section 26-511 of the rent stabilization law of
nineteen hundred sixty-nine 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.
PART J
Section 1. Paragraph 10 and 11 of subdivision a of section 5 of
section 4 of chapter 576 of the laws of 1974, constituting the emergency
tenant protection act of nineteen seventy-four, paragraph 11 as amended
by chapter 422 of the laws of 2010, are amended to read as follows:
(10) housing accommodations in buildings operated exclusively for
charitable purposes on a non-profit basis EXCEPT FOR PERMANENT HOUSING
ACCOMMODATIONS WITH GOVERNMENT CONTRACTED SERVICES, AS OF AND AFTER THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT
AMENDED THIS PARAGRAPH, TO VULNERABLE INDIVIDUALS OR INDIVIDUALS WITH
DISABILITIES WHO ARE OR WERE HOMELESS OR AT RISK OF HOMELESSNESS;
PROVIDED, HOWEVER, THAT TERMS OF LEASES IN EXISTENCE AS OF THE EFFECTIVE
DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
THIS PARAGRAPH, SHALL ONLY BE AFFECTED UPON LEASE RENEWAL, AND FURTHER
PROVIDED THAT UPON THE VACANCY OF SUCH HOUSING ACCOMMODATIONS SHALL BE
THE LEGAL REGULATED RENT PAID FOR SUCH HOUSING ACCOMMODATIONS BY THE
PRIOR TENANT, SUBJECT ONLY TO ANY ADJUSTMENT ADOPTED BY THE APPLICABLE
RENT GUIDELINES BOARD;
(11) housing accommodations which are not occupied by the tenant, not
including subtenants or occupants, as his or her primary residence, as
determined by a court of competent jurisdiction. For the purposes of
determining primary residency, a tenant who is a victim of domestic
violence, as defined in section four hundred fifty-nine-a of the social
services law, who has left the unit because of such violence, and who
asserts an intent to return to the housing accommodation shall be deemed
to be occupying the unit as his or her primary residence. For the
purposes of this paragraph, where a housing accommodation is rented to a
not-for-profit hospital for residential use, affiliated subtenants
authorized to use such accommodations by such hospital shall be deemed
to be tenants. FOR THE PURPOSES OF THIS PARAGRAPH, WHERE A HOUSING
ACCOMMODATION IS RENTED TO A NOT-FOR-PROFIT FOR PROVIDING, AS OF AND
AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
NINETEEN THAT AMENDED THIS PARAGRAPH, PERMANENT HOUSING TO INDIVIDUALS
WHO ARE OR WERE HOMELESS OR AT RISK OF HOMELESSNESS, AFFILIATED SUBTEN-
ANTS AUTHORIZED TO USE SUCH ACCOMMODATIONS BY SUCH NOT-FOR-PROFIT SHALL
BE DEEMED TO BE TENANTS. No action or proceeding shall be commenced
seeking to recover possession on the ground that a housing accommodation
is not occupied by the tenant as his or her primary residence unless the
owner or lessor shall have given thirty days notice to the tenant of his
or her intention to commence such action or proceeding on such grounds.
§ 2. This act shall take effect immediately.
S. 6458 23 A. 8281
PART K
Section 1. Paragraph 1 of subdivision d of section 6 of section 4 of
chapter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by section 18 of
part B of chapter 97 of the laws of 2011, is amended to read as follows:
(1) there has been a substantial modification or increase of dwelling
space [or an increase in the services], or installation of new equipment
or improvements or new furniture or furnishings, provided in or to a
tenant's housing accommodation, on written INFORMED tenant consent to
the rent increase. In the case of a vacant housing accommodation,
tenant consent shall not be required. The [permanent] TEMPORARY
increase in the legal regulated rent for the affected housing accommo-
dation shall be [one-fortieth] ONE-ONE HUNDRED SIXTY-EIGHTH, in the case
of a building with thirty-five or fewer housing accommodations[, or
one-sixtieth,] OR ONE-ONE HUNDRED EIGHTIETH in the case of a building
with more than thirty-five housing accommodations where such [permanent]
increase takes effect on or after [September twenty-fourth, two thousand
eleven, of the total cost incurred by the landlord in providing such
modification or increase in dwelling space, services, furniture,
furnishings or equipment, including the cost of installation, but
excluding finance charges] THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS
OF TWO THOUSAND NINETEEN THAT AMENDED THIS PARAGRAPH, OF THE TOTAL ACTU-
AL COST INCURRED BY THE LANDLORD UP TO FIFTEEN THOUSAND DOLLARS IN
PROVIDING SUCH REASONABLE AND VERIFIABLE MODIFICATION OR INCREASE IN
DWELLING SPACE, FURNITURE, FURNISHINGS, OR EQUIPMENT, INCLUDING THE COST
OF INSTALLATION BUT EXCLUDING FINANCE CHARGES AND ANY COSTS THAT EXCEED
REASONABLE COSTS ESTABLISHED BY RULES AND REGULATIONS PROMULGATED BY THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL. SUCH RULES AND REGULATIONS
SHALL INCLUDE: (I) REQUIREMENTS FOR WORK TO BE DONE BY LICENSED CONTRAC-
TORS AND A PROHIBITION ON COMMON OWNERSHIP BETWEEN THE LANDLORD AND THE
CONTRACTOR OR VENDOR; AND (II) A REQUIREMENT THAT THE OWNER RESOLVE
WITHIN THE DWELLING SPACE ALL OUTSTANDING HAZARDOUS OR IMMEDIATELY
HAZARDOUS VIOLATIONS OF THE UNIFORM FIRE PREVENTION AND BUILDING CODE
(UNIFORM CODE), NEW YORK CITY FIRE CODE, OR NEW YORK CITY BUILDING AND
HOUSING MAINTENANCE CODES, IF APPLICABLE. Provided further that an owner
who is entitled to a rent increase pursuant to this paragraph shall not
be entitled to a further rent increase based upon the installation of
similar equipment, or new furniture or furnishings within the useful
life of such new equipment, or new furniture or furnishings. PROVIDED
FURTHER THAT THE RECOVERABLE COSTS INCURRED BY THE LANDLORD, PURSUANT TO
THIS PARAGRAPH, SHALL BE LIMITED TO AN AGGREGATE COST OF FIFTEEN THOU-
SAND DOLLARS THAT MAY BE EXPENDED ON NO MORE THAN THREE SEPARATE INDI-
VIDUAL APARTMENT IMPROVEMENTS IN A FIFTEEN YEAR PERIOD. PROVIDED FURTHER
THAT INCREASES TO THE LEGAL REGULATED RENT PURSUANT TO THIS PARAGRAPH
SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY YEARS FROM THE
DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY INCREASES GRANTED BY
THE APPLICABLE RENT GUIDELINES BOARD.
§ 2. Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 16 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
(13) provides that an owner is entitled to a rent increase where there
has been a substantial modification or increase of dwelling space [or an
increase in the services], or installation of new equipment or improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing accommodation, on written INFORMED tenant consent to the rent
S. 6458 24 A. 8281
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. The [permanent] TEMPORARY increase in the legal
regulated rent for the affected housing accommodation shall be [one-for-
tieth,] ONE-ONE HUNDRED SIXTY-EIGHTH, in the case of a building with
thirty-five or fewer housing accommodations[, or one-sixtieth,] OR ONE-
ONE HUNDRED EIGHTIETH in the case of a building with more than thirty-
five housing accommodations where such [permanent] increase takes effect
on or after [September twenty-fourth, two thousand eleven, of the total
cost incurred by the landlord in providing such modification or increase
in dwelling space, services, furniture, furnishings or equipment,
including the cost of installation, but excluding finance charges] THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT
AMENDED THIS PARAGRAPH, OF THE TOTAL ACTUAL COST INCURRED BY THE LAND-
LORD IN PROVIDING SUCH REASONABLE AND VERIFIABLE MODIFICATION OR
INCREASE IN DWELLING SPACE, FURNITURE, FURNISHINGS, OR EQUIPMENT,
INCLUDING THE COST OF INSTALLATION BUT EXCLUDING FINANCE CHARGES AND ANY
COSTS THAT EXCEED REASONABLE COSTS ESTABLISHED BY RULES AND REGULATIONS
PROMULGATED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL. SUCH RULES
AND REGULATIONS SHALL INCLUDE: (I) REQUIREMENTS FOR WORK TO BE DONE BY
LICENSED CONTRACTORS AND PROHIBIT COMMON OWNERSHIP BETWEEN THE LANDLORD
AND THE CONTRACTOR OR VENDOR; AND (II) A REQUIREMENT THAT THE OWNER
RESOLVE WITHIN THE DWELLING SPACE ALL OUTSTANDING HAZARDOUS OR IMME-
DIATELY HAZARDOUS VIOLATIONS OF THE UNIFORM FIRE PREVENTION AND BUILDING
CODE (UNIFORM CODE), NEW YORK CITY FIRE CODE, OR NEW YORK CITY BUILDING
AND HOUSING MAINTENANCE CODES, IF APPLICABLE. Provided further that an
owner who is entitled to a rent increase pursuant to this paragraph
shall not be entitled to a further rent increase based upon the instal-
lation of similar equipment, or new furniture or furnishings within the
useful life of such new equipment, or new furniture or furnishings.
PROVIDED FURTHER THAT THE RECOVERABLE COSTS INCURRED BY THE LANDLORD,
PURSUANT TO THIS PARAGRAPH, SHALL BE LIMITED TO AN AGGREGATE COST OF
FIFTEEN THOUSAND DOLLARS THAT MAY BE EXPENDED ON NO MORE THAN THREE
SEPARATE INDIVIDUAL APARTMENT IMPROVEMENTS IN A FIFTEEN YEAR PERIOD.
PROVIDED FURTHER THAT INCREASES TO THE LEGAL REGULATED RENT PURSUANT TO
THIS PARAGRAPH SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY
YEARS FROM THE DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY
INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES BOARD.
§ 3. Subparagraph (e) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section 15 of part B of chapter 97 of the laws of 2011, is amended to
read as follows:
(e) The landlord and tenant by mutual voluntary written agreement
DEMONSTRATING INFORMED CONSENT agree to a substantial increase or
decrease in dwelling space or a change in [the services,] furniture,
furnishings or equipment provided in the housing accommodations. An
adjustment under this subparagraph shall be equal to [one-fortieth]
ONE-ONE HUNDRED SIXTY-EIGHTH, in the case of a building with thirty-five
or fewer housing accommodations[, or one-sixtieth,] OR ONE-ONE HUNDRED
EIGHTIETH in the case of a building with more than thirty-five housing
accommodations where such TEMPORARY adjustment takes effect on or after
[September twenty-fourth, two thousand eleven, of the total cost
incurred by the landlord in providing such modification or increase in
dwelling space, services, furniture, furnishings or equipment, including
the cost of installation, but excluding finance charges, provided] THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT
AMENDED THIS SUBPARAGRAPH, OF THE TOTAL ACTUAL COST INCURRED BY THE
S. 6458 25 A. 8281
LANDLORD IN PROVIDING SUCH REASONABLE AND VERIFIABLE MODIFICATION OR
INCREASE IN DWELLING SPACE, FURNITURE, FURNISHINGS, OR EQUIPMENT,
INCLUDING THE COST OF INSTALLATION BUT EXCLUDING FINANCE CHARGES AND ANY
COSTS THAT EXCEED REASONABLE COSTS ESTABLISHED BY RULES AND REGULATIONS
PROMULGATED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL. SUCH RULES
AND REGULATIONS SHALL INCLUDE: (I) REQUIREMENTS FOR WORK TO BE DONE BY
LICENSED CONTRACTORS AND PROHIBIT COMMON OWNERSHIP BETWEEN THE LANDLORD
AND THE CONTRACTOR OR VENDOR; AND (II) A REQUIREMENT THAT THE OWNER
RESOLVE WITHIN THE DWELLING SPACE ALL OUTSTANDING HAZARDOUS OR IMME-
DIATELY HAZARDOUS VIOLATIONS OF THE UNIFORM FIRE PREVENTION AND BUILDING
CODE (UNIFORM CODE), NEW YORK CITY FIRE CODE, OR NEW YORK CITY BUILDING
AND HOUSING MAINTENANCE CODES, IF APPLICABLE. PROVIDED further that an
owner who is entitled to a rent increase pursuant to this subparagraph
shall not be entitled to a further rent increase based upon the instal-
lation of similar equipment, or new furniture or furnishings within the
useful life of such new equipment, or new furniture or furnishings.
PROVIDED FURTHER THAT THE RECOVERABLE COSTS INCURRED BY THE LANDLORD,
PURSUANT TO THIS SUBPARAGRAPH SHALL BE LIMITED TO AN AGGREGATE COST OF
FIFTEEN THOUSAND DOLLARS THAT MAY BE EXPENDED ON NO MORE THAN THREE
SEPARATE INDIVIDUAL APARTMENT IMPROVEMENTS IN A FIFTEEN YEAR PERIOD.
PROVIDED FURTHER THAT INCREASES TO THE LEGAL REGULATED RENT PURSUANT TO
THIS SUBPARAGRAPH SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY
YEARS FROM THE DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY
INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES BOARD. The owner
shall give written notice to the city rent agency of any such TEMPORARY
adjustment pursuant to this subparagraph; or
§ 4. The administrative code of the city of New York is amended by
adding a new section 26-511.1 to read as follows:
§ 26-511.1 MAJOR CAPITAL IMPROVEMENTS AND INDIVIDUAL APARTMENT
IMPROVEMENTS IN RENT REGULATED UNITS. A. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW TO THE CONTRARY, THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL, THE "DIVISION", SHALL PROMULGATE RULES AND REGULATIONS APPLICA-
BLE TO ALL RENT REGULATED UNITS THAT SHALL:
(1) ESTABLISH A SCHEDULE OF REASONABLE COSTS FOR MAJOR CAPITAL
IMPROVEMENTS, WHICH SHALL SET A CEILING FOR WHAT CAN BE RECOVERED
THROUGH A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE, BASED ON THE
TYPE OF IMPROVEMENT AND ITS RATE OF DEPRECIATION;
(2) ESTABLISH THE CRITERIA FOR ELIGIBILITY OF A TEMPORARY MAJOR CAPI-
TAL IMPROVEMENT INCREASE INCLUDING THE TYPE OF IMPROVEMENT, WHICH SHALL
BE ESSENTIAL FOR THE PRESERVATION, ENERGY EFFICIENCY, FUNCTIONALITY OR
INFRASTRUCTURE OF THE ENTIRE BUILDING, INCLUDING HEATING, WINDOWS,
PLUMBING AND ROOFING, BUT SHALL NOT BE FOR OPERATIONAL COSTS OR UNNECES-
SARY COSMETIC IMPROVEMENTS. ALLOWABLE IMPROVEMENTS MUST ADDITIONALLY BE
DEPRECIABLE PURSUANT TO THE INTERNAL REVENUE SERVICE, OTHER THAN FOR
ORDINARY REPAIRS, THAT DIRECTLY OR INDIRECTLY BENEFIT ALL TENANTS; AND
NO INCREASE SHALL BE APPROVED FOR GROUP WORK DONE IN INDIVIDUAL APART-
MENTS THAT IS OTHERWISE NOT AN IMPROVEMENT TO AN ENTIRE BUILDING. ONLY
SUCH COSTS THAT ARE ACTUAL, REASONABLE, AND VERIFIABLE MAY BE APPROVED
AS A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE;
(3) REQUIRE THAT ANY TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE
GRANTED PURSUANT TO THESE PROVISIONS BE REDUCED BY AN AMOUNT EQUAL TO
(I) ANY GOVERNMENTAL GRANT RECEIVED BY THE LANDLORD, WHERE SUCH GRANT
COMPENSATES THE LANDLORD FOR ANY IMPROVEMENTS REQUIRED BY A CITY, STATE
OR FEDERAL GOVERNMENT, AN AGENCY OR ANY GRANTING GOVERNMENTAL ENTITY TO
BE EXPENDED FOR IMPROVEMENTS AND (II) ANY INSURANCE PAYMENT RECEIVED BY
S. 6458 26 A. 8281
THE LANDLORD WHERE SUCH INSURANCE PAYMENT COMPENSATES THE LANDLORD FOR
ANY PART OF THE COSTS OF THE IMPROVEMENTS;
(4) PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS VIOLATIONS OF
THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM CODE), NEW YORK
CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING MAINTENANCE CODES,
IF APPLICABLE;
(5) PROHIBIT INDIVIDUAL APARTMENT IMPROVEMENT INCREASES FOR HOUSING
ACCOMMODATIONS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS
VIOLATIONS OF THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM
CODE), NEW YORK CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING
MAINTENANCE CODES, IF APPLICABLE;
(6) PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH THIRTY-FIVE PER CENTUM OR FEWER RENT-REGULATED UNITS;
(7) ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE FIXED TO THE UNIT AND SHALL CEASE THIRTY YEARS FROM THE DATE THE
INCREASE BECAME EFFECTIVE. TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES
SHALL BE ADDED TO THE LEGAL REGULATED RENT AS A TEMPORARY INCREASE AND
SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY YEARS FROM THE
DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY INCREASES GRANTED BY
THE LOCAL RENT GUIDELINES BOARD;
(8) ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE COLLECTIBLE PROSPECTIVELY SIXTY DAYS FROM THE DATE OF MAILING NOTICE
OF APPROVAL TO THE TENANT. SUCH NOTICE SHALL DISCLOSE THE TOTAL MONTHLY
INCREASE IN RENT AND THE FIRST MONTH IN WHICH THE TENANT WOULD BE
REQUIRED TO PAY THE TEMPORARY INCREASE. AN APPROVAL FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE SHALL NOT INCLUDE RETROACTIVE
PAYMENTS. THE COLLECTION OF ANY INCREASE SHALL NOT EXCEED TWO PERCENT IN
ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE OVER
THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS, WITH COLLECTABILITY
OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR
INCREMENTS AND ADDED TO THE RENT AS ESTABLISHED OR SET IN FUTURE YEARS.
UPON VACANCY, THE LANDLORD MAY ADD ANY REMAINING BALANCE OF THE TEMPO-
RARY MAJOR CAPITAL IMPROVEMENT INCREASE TO THE LEGAL REGULATED RENT.
NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, THE COLLECTION OF ANY
RENT INCREASES DUE TO ANY MAJOR CAPITAL IMPROVEMENTS APPROVED ON OR
AFTER JUNE 16, 2012 AND BEFORE JUNE 16, 2019 SHALL NOT EXCEED TWO
PERCENT IN ANY YEAR BEGINNING ON OR AFTER SEPTEMBER 1, 2019 FOR ANY
TENANT IN OCCUPANCY ON THE DATE THE MAJOR CAPITAL IMPROVEMENT WAS
APPROVED;
(9) ENSURE THAT THE APPLICATION PROCEDURE FOR TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASES SHALL INCLUDE AN ITEMIZED LIST OF WORK PERFORMED
AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF SUCH WORK;
(10) PROVIDE, THAT WHERE AN APPLICATION FOR A MAJOR CAPITAL IMPROVE-
MENT RENT INCREASE HAS BEEN FILED, A TENANT SHALL HAVE SIXTY DAYS FROM
THE DATE OF MAILING OF A NOTICE OF A PROCEEDING IN WHICH TO ANSWER OR
REPLY;
(11) ESTABLISH A NOTIFICATION AND DOCUMENTATION PROCEDURE FOR INDIVID-
UAL APARTMENT IMPROVEMENTS THAT REQUIRES AN ITEMIZED LIST OF WORK
PERFORMED AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF
SUCH WORK, INCLUSIVE OF PHOTOGRAPHIC EVIDENCE DOCUMENTING THE CONDITION
PRIOR TO AND AFTER THE COMPLETION OF THE PERFORMED WORK. PROVIDE FOR THE
CENTRALIZED ELECTRONIC RETENTION OF SUCH DOCUMENTATION AND ANY OTHER
SUPPORTING DOCUMENTATION TO BE MADE AVAILABLE IN CASES PERTAINING TO THE
ADJUSTMENT OF LEGAL REGULATED RENTS; AND
S. 6458 27 A. 8281
(12) ESTABLISH A FORM FOR A TEMPORARY INDIVIDUAL APARTMENT IMPROVEMENT
RENT INCREASE FOR A TENANT IN OCCUPANCY WHICH SHALL BE USED BY LANDLORDS
TO OBTAIN WRITTEN INFORMED CONSENT THAT SHALL INCLUDE THE ESTIMATED
TOTAL COST OF THE IMPROVEMENT AND THE ESTIMATED MONTHLY RENT INCREASE.
SUCH CONSENT SHALL BE EXECUTED IN THE TENANT'S PRIMARY LANGUAGE. SUCH
FORM SHALL BE COMPLETED AND PRESERVED IN THE CENTRALIZED ELECTRONIC
RETENTION SYSTEM. NOTHING HEREIN SHALL RELIEVE A LANDLORD, LESSOR, OR
AGENT THEREOF OF HIS OR HER DUTY TO RETAIN PROPER DOCUMENTATION OF ALL
IMPROVEMENTS PERFORMED OR ANY RENT INCREASES RESULTING FROM SAID
IMPROVEMENTS.
B. THE DIVISION SHALL ESTABLISH AN ANNUAL INSPECTION AND AUDIT PROCESS
WHICH SHALL REVIEW TWENTY-FIVE PERCENT OF APPLICATIONS FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE THAT HAVE BEEN SUBMITTED AND
APPROVED. SUCH PROCESS SHALL INCLUDE INDIVIDUAL INSPECTIONS AND DOCUMENT
REVIEW TO ENSURE THAT OWNERS COMPLIED WITH ALL OBLIGATIONS AND RESPONSI-
BILITIES UNDER THE LAW FOR TEMPORARY MAJOR CAPITAL IMPROVEMENT
INCREASES. INSPECTIONS SHALL INCLUDE IN-PERSON CONFIRMATION THAT SUCH
IMPROVEMENTS HAVE BEEN COMPLETED IN SUCH WAY AS DESCRIBED IN THE APPLI-
CATION.
C. THE DIVISION SHALL ISSUE A NOTICE TO THE LANDLORD AND ALL THE
TENANTS SIXTY DAYS PRIOR TO THE END OF THE TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASE AND SHALL INCLUDE THE INITIAL APPROVED INCREASE AND
THE TOTAL AMOUNT TO BE REMOVED FROM THE LEGAL REGULATED RENT INCLUSIVE
OF ANY INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES BOARD.
§ 5. The administrative code of the city of New York is amended by
adding a new section 26-405.1 to read as follows:
§ 26-405.1 MAJOR CAPITAL IMPROVEMENTS AND INDIVIDUAL APARTMENT
IMPROVEMENTS IN RENT REGULATED UNITS. A. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW TO THE CONTRARY, THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL, THE "DIVISION", SHALL PROMULGATE RULES AND REGULATIONS APPLICA-
BLE TO ALL RENT REGULATED UNITS THAT SHALL:
(1) ESTABLISH A SCHEDULE OF REASONABLE COSTS FOR MAJOR CAPITAL
IMPROVEMENTS, WHICH SHALL SET A CEILING FOR WHAT CAN BE RECOVERED
THROUGH A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE, BASED ON THE
TYPE OF IMPROVEMENT AND ITS RATE OF DEPRECIATION;
(2) ESTABLISH THE CRITERIA FOR ELIGIBILITY OF A TEMPORARY MAJOR CAPI-
TAL IMPROVEMENT INCREASE INCLUDING THE TYPE OF IMPROVEMENT, WHICH SHALL
BE ESSENTIAL FOR THE PRESERVATION, ENERGY EFFICIENCY, FUNCTIONALITY OR
INFRASTRUCTURE OF THE ENTIRE BUILDING, INCLUDING HEATING, WINDOWS,
PLUMBING AND ROOFING, BUT SHALL NOT BE FOR OPERATIONAL COSTS OR UNNECES-
SARY COSMETIC IMPROVEMENTS. ALLOWABLE IMPROVEMENTS MUST ADDITIONALLY BE
DEPRECIABLE PURSUANT TO THE INTERNAL REVENUE SERVICE, OTHER THAN FOR
ORDINARY REPAIRS, THAT DIRECTLY OR INDIRECTLY BENEFIT ALL TENANTS; AND
NO INCREASE SHALL BE APPROVED FOR GROUP WORK DONE IN INDIVIDUAL APART-
MENTS THAT IS OTHERWISE NOT AN IMPROVEMENT TO AN ENTIRE BUILDING. ONLY
SUCH COSTS THAT ARE ACTUAL, REASONABLE, AND VERIFIABLE MAY BE APPROVED
AS A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE;
(3) REQUIRE THAT ANY TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE
GRANTED PURSUANT TO THESE PROVISIONS BE REDUCED BY AN AMOUNT EQUAL TO
(I) ANY GOVERNMENTAL GRANT RECEIVED BY THE LANDLORD, WHERE SUCH GRANT
COMPENSATES THE LANDLORD FOR ANY IMPROVEMENTS REQUIRED BY A CITY, STATE
OR FEDERAL GOVERNMENT, AN AGENCY OR ANY GRANTING GOVERNMENTAL ENTITY TO
BE EXPENDED FOR IMPROVEMENTS AND (II) ANY INSURANCE PAYMENT RECEIVED BY
THE LANDLORD WHERE SUCH INSURANCE PAYMENT COMPENSATES THE LANDLORD FOR
ANY PART OF THE COSTS OF THE IMPROVEMENTS;
S. 6458 28 A. 8281
(4) PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS VIOLATIONS OF
THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM CODE), NEW YORK
CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING MAINTENANCE CODES,
IF APPLICABLE;
(5) PROHIBIT INDIVIDUAL APARTMENT IMPROVEMENT INCREASES FOR HOUSING
ACCOMMODATIONS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS
VIOLATIONS OF THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM
CODE), NEW YORK CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING
MAINTENANCE CODES, IF APPLICABLE;
(6) PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH THIRTY-FIVE PER CENTUM OR FEWER RENT-REGULATED UNITS;
(7) ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE FIXED TO THE UNIT AND SHALL CEASE THIRTY YEARS FROM THE DATE THE
INCREASE BECAME EFFECTIVE. TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES
SHALL BE ADDED TO THE LEGAL REGULATED RENT AS A TEMPORARY INCREASE AND
SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY YEARS FROM THE
DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY INCREASES GRANTED BY
THE LOCAL RENT GUIDELINES BOARD;
(8) ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE COLLECTIBLE PROSPECTIVELY SIXTY DAYS FROM THE DATE OF MAILING NOTICE
OF APPROVAL TO THE TENANT. SUCH NOTICE SHALL DISCLOSE THE TOTAL MONTHLY
INCREASE IN RENT AND THE FIRST MONTH IN WHICH THE TENANT WOULD BE
REQUIRED TO PAY THE TEMPORARY INCREASE. AN APPROVAL FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE SHALL NOT INCLUDE RETROACTIVE
PAYMENTS. THE COLLECTION OF ANY INCREASE SHALL NOT EXCEED TWO PERCENT IN
ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE OVER
THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS, WITH COLLECTABILITY
OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR
INCREMENTS AND ADDED TO THE RENT AS ESTABLISHED OR SET IN FUTURE YEARS.
UPON VACANCY, THE LANDLORD MAY ADD ANY REMAINING BALANCE OF THE TEMPO-
RARY MAJOR CAPITAL IMPROVEMENT INCREASE TO THE LEGAL REGULATED RENT.
NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, THE COLLECTION OF ANY
RENT INCREASES DUE TO ANY MAJOR CAPITAL IMPROVEMENTS APPROVED ON OR
AFTER JUNE 16, 2012 AND BEFORE JUNE 16, 2019 SHALL NOT EXCEED TWO
PERCENT IN ANY YEAR BEGINNING ON OR AFTER SEPTEMBER 1, 2019 FOR ANY
TENANT IN OCCUPANCY ON THE DATE THE MAJOR CAPITAL IMPROVEMENT WAS
APPROVED;
(9) ENSURE THAT THE APPLICATION PROCEDURE FOR TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASES SHALL INCLUDE AN ITEMIZED LIST OF WORK PERFORMED
AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF SUCH WORK;
(10) PROVIDE, THAT WHERE AN APPLICATION FOR A MAJOR CAPITAL IMPROVE-
MENT RENT INCREASE HAS BEEN FILED, A TENANT SHALL HAVE SIXTY DAYS FROM
THE DATE OF MAILING OF A NOTICE OF A PROCEEDING IN WHICH TO ANSWER OR
REPLY;
(11) ESTABLISH A NOTIFICATION AND DOCUMENTATION PROCEDURE FOR INDIVID-
UAL APARTMENT IMPROVEMENTS THAT REQUIRES AN ITEMIZED LIST OF WORK
PERFORMED AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF
SUCH WORK, INCLUSIVE OF PHOTOGRAPHIC EVIDENCE DOCUMENTING THE CONDITION
PRIOR TO AND AFTER THE COMPLETION OF THE PERFORMED WORK. PROVIDE FOR THE
CENTRALIZED ELECTRONIC RETENTION OF SUCH DOCUMENTATION AND ANY OTHER
SUPPORTING DOCUMENTATION TO BE MADE AVAILABLE IN CASES PERTAINING TO THE
ADJUSTMENT OF LEGAL REGULATED RENTS; AND
(12) ESTABLISH A FORM FOR A TEMPORARY INDIVIDUAL APARTMENT IMPROVEMENT
RENT INCREASE FOR A TENANT IN OCCUPANCY WHICH SHALL BE USED BY LANDLORDS
TO OBTAIN WRITTEN INFORMED CONSENT THAT SHALL INCLUDE THE ESTIMATED
S. 6458 29 A. 8281
TOTAL COST OF THE IMPROVEMENT AND THE ESTIMATED MONTHLY RENT INCREASE.
SUCH CONSENT SHALL BE EXECUTED IN THE TENANT'S PRIMARY LANGUAGE. SUCH
FORM SHALL BE COMPLETED AND PRESERVED IN THE CENTRALIZED ELECTRONIC
RETENTION SYSTEM. NOTHING HEREIN SHALL RELIEVE A LANDLORD, LESSOR, OR
AGENT THEREOF OF HIS OR HER DUTY TO RETAIN PROPER DOCUMENTATION OF ALL
IMPROVEMENTS PERFORMED OR ANY RENT INCREASES RESULTING FROM SAID
IMPROVEMENTS.
B. THE DIVISION SHALL ESTABLISH AN ANNUAL INSPECTION AND AUDIT PROCESS
WHICH SHALL REVIEW TWENTY-FIVE PERCENT OF APPLICATIONS FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE THAT HAVE BEEN SUBMITTED AND
APPROVED. SUCH PROCESS SHALL INCLUDE INDIVIDUAL INSPECTIONS AND DOCUMENT
REVIEW TO ENSURE THAT OWNERS COMPLIED WITH ALL OBLIGATIONS AND RESPONSI-
BILITIES UNDER THE LAW FOR TEMPORARY MAJOR CAPITAL IMPROVEMENT
INCREASES. INSPECTIONS SHALL INCLUDE IN-PERSON CONFIRMATION THAT SUCH
IMPROVEMENTS HAVE BEEN COMPLETED IN SUCH WAY AS DESCRIBED IN THE APPLI-
CATION.
C. THE DIVISION SHALL ISSUE A NOTICE TO THE LANDLORD AND ALL THE
TENANTS SIXTY DAYS PRIOR TO THE END OF THE TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASE AND SHALL INCLUDE THE INITIAL APPROVED INCREASE AND
THE TOTAL AMOUNT TO BE REMOVED FROM THE LEGAL REGULATED RENT INCLUSIVE
OF ANY INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES BOARD.
§ 6. Section 4 of chapter 576 of the laws of 1974, constituting the
emergency tenant protection act of nineteen seventy-four, is amended by
adding a new section 10-b to read as follows:
§ 10-B. MAJOR CAPITAL IMPROVEMENTS AND INDIVIDUAL APARTMENT IMPROVE-
MENTS IN RENT REGULATED UNITS. (A) NOTWITHSTANDING ANY OTHER PROVISION
OF LAW TO THE CONTRARY, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL,
THE "DIVISION", SHALL PROMULGATE RULES AND REGULATIONS APPLICABLE TO ALL
RENT REGULATED UNITS THAT SHALL:
1. ESTABLISH A SCHEDULE OF REASONABLE COSTS FOR MAJOR CAPITAL IMPROVE-
MENTS, WHICH SHALL SET A CEILING FOR WHAT CAN BE RECOVERED THROUGH A
TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE, BASED ON THE TYPE OF
IMPROVEMENT AND ITS RATE OF DEPRECIATION;
2. ESTABLISH THE CRITERIA FOR ELIGIBILITY OF A TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASE INCLUDING THE TYPE OF IMPROVEMENT, WHICH SHALL BE
ESSENTIAL FOR THE PRESERVATION, ENERGY EFFICIENCY, FUNCTIONALITY OR
INFRASTRUCTURE OF THE ENTIRE BUILDING, INCLUDING HEATING, WINDOWS,
PLUMBING AND ROOFING, BUT SHALL NOT BE FOR OPERATIONAL COSTS OR UNNECES-
SARY COSMETIC IMPROVEMENTS. ALLOWABLE IMPROVEMENTS MUST ADDITIONALLY BE
DEPRECIABLE PURSUANT TO THE INTERNAL REVENUE SERVICE, OTHER THAN FOR
ORDINARY REPAIRS, THAT DIRECTLY OR INDIRECTLY BENEFIT ALL TENANTS; AND
NO INCREASE SHALL BE APPROVED FOR GROUP WORK DONE IN INDIVIDUAL APART-
MENTS THAT IS OTHERWISE NOT AN IMPROVEMENT TO AN ENTIRE BUILDING. ONLY
SUCH COSTS THAT ARE ACTUAL, REASONABLE, AND VERIFIABLE MAY BE APPROVED
AS A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE;
3. REQUIRE THAT ANY TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE
GRANTED PURSUANT TO THESE PROVISIONS BE REDUCED BY AN AMOUNT EQUAL TO
(I) ANY GOVERNMENTAL GRANT RECEIVED BY THE LANDLORD, WHERE SUCH GRANT
COMPENSATES THE LANDLORD FOR ANY IMPROVEMENTS REQUIRED BY A CITY, STATE
OR FEDERAL GOVERNMENT, AN AGENCY OR ANY GRANTING GOVERNMENTAL ENTITY TO
BE EXPENDED FOR IMPROVEMENTS AND (II) ANY INSURANCE PAYMENT RECEIVED BY
THE LANDLORD WHERE SUCH INSURANCE PAYMENT COMPENSATES THE LANDLORD FOR
ANY PART OF THE COSTS OF THE IMPROVEMENTS;
4. PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS VIOLATIONS OF
THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM CODE), NEW YORK
S. 6458 30 A. 8281
CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING MAINTENANCE CODES,
IF APPLICABLE;
5. PROHIBIT INDIVIDUAL APARTMENT IMPROVEMENT INCREASES FOR HOUSING
ACCOMMODATIONS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS
VIOLATIONS OF THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM
CODE), NEW YORK CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING
MAINTENANCE CODES, IF APPLICABLE;
6. PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH THIRTY-FIVE PER CENTUM OR FEWER RENT-REGULATED UNITS;
7. ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE FIXED TO THE UNIT AND SHALL CEASE THIRTY YEARS FROM THE DATE THE
INCREASE BECAME EFFECTIVE. TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES
SHALL BE ADDED TO THE LEGAL REGULATED RENT AS A TEMPORARY INCREASE AND
SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY YEARS FROM THE
DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY INCREASES GRANTED BY
THE LOCAL RENT GUIDELINES BOARD;
8. ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE COLLECTIBLE PROSPECTIVELY SIXTY DAYS FROM THE DATE OF MAILING NOTICE
OF APPROVAL TO THE TENANT. SUCH NOTICE SHALL DISCLOSE THE TOTAL MONTHLY
INCREASE IN RENT AND THE FIRST MONTH IN WHICH THE TENANT WOULD BE
REQUIRED TO PAY THE TEMPORARY INCREASE. AN APPROVAL FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE SHALL NOT INCLUDE RETROACTIVE
PAYMENTS. THE COLLECTION OF ANY INCREASE SHALL NOT EXCEED TWO PERCENT IN
ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE OVER
THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS, WITH COLLECTABILITY
OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR
INCREMENTS AND ADDED TO THE RENT AS ESTABLISHED OR SET IN FUTURE YEARS.
UPON VACANCY, THE LANDLORD MAY ADD ANY REMAINING BALANCE OF THE TEMPO-
RARY MAJOR CAPITAL IMPROVEMENT INCREASE TO THE LEGAL REGULATED RENT.
NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, THE COLLECTION OF ANY
RENT INCREASES DUE TO ANY MAJOR CAPITAL IMPROVEMENTS APPROVED ON OR
AFTER JUNE 16, 2012 AND BEFORE JUNE 16, 2019 SHALL NOT EXCEED TWO
PERCENT IN ANY YEAR BEGINNING ON OR AFTER SEPTEMBER 1, 2019 FOR ANY
TENANT IN OCCUPANCY ON THE DATE THE MAJOR CAPITAL IMPROVEMENT WAS
APPROVED;
9. ENSURE THAT THE APPLICATION PROCEDURE FOR TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASES SHALL INCLUDE AN ITEMIZED LIST OF WORK PERFORMED
AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF SUCH WORK;
10. PROVIDE, THAT WHERE AN APPLICATION FOR A MAJOR CAPITAL IMPROVE-
MENT RENT INCREASE HAS BEEN FILED, A TENANT SHALL HAVE SIXTY DAYS FROM
THE DATE OF MAILING OF A NOTICE OF A PROCEEDING IN WHICH TO ANSWER OR
REPLY;
11. ESTABLISH A NOTIFICATION AND DOCUMENTATION PROCEDURE FOR INDIVID-
UAL APARTMENT IMPROVEMENTS THAT REQUIRES AN ITEMIZED LIST OF WORK
PERFORMED AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF
SUCH WORK, INCLUSIVE OF PHOTOGRAPHIC EVIDENCE DOCUMENTING THE CONDITION
PRIOR TO AND AFTER THE COMPLETION OF THE PERFORMED WORK. PROVIDE FOR THE
CENTRALIZED ELECTRONIC RETENTION OF SUCH DOCUMENTATION AND ANY OTHER
SUPPORTING DOCUMENTATION TO BE MADE AVAILABLE IN CASES PERTAINING TO THE
ADJUSTMENT OF LEGAL REGULATED RENTS; AND
12. ESTABLISH A FORM FOR A TEMPORARY INDIVIDUAL APARTMENT IMPROVEMENT
RENT INCREASE FOR A TENANT IN OCCUPANCY WHICH SHALL BE USED BY LANDLORDS
TO OBTAIN WRITTEN INFORMED CONSENT THAT SHALL INCLUDE THE ESTIMATED
TOTAL COST OF THE IMPROVEMENT AND THE ESTIMATED MONTHLY RENT INCREASE.
SUCH CONSENT SHALL BE EXECUTED IN THE TENANT'S PRIMARY LANGUAGE. SUCH
FORM SHALL BE COMPLETED AND PRESERVED IN THE CENTRALIZED ELECTRONIC
S. 6458 31 A. 8281
RETENTION SYSTEM. NOTHING HEREIN SHALL RELIEVE A LANDLORD, LESSOR, OR
AGENT THEREOF OF HIS OR HER DUTY TO RETAIN PROPER DOCUMENTATION OF ALL
IMPROVEMENTS PERFORMED OR ANY RENT INCREASES RESULTING FROM SAID
IMPROVEMENTS.
(B) THE DIVISION SHALL ESTABLISH AN ANNUAL INSPECTION AND AUDIT PROC-
ESS WHICH SHALL REVIEW TWENTY-FIVE PERCENT OF APPLICATIONS FOR A TEMPO-
RARY MAJOR CAPITAL IMPROVEMENT INCREASE THAT HAVE BEEN SUBMITTED AND
APPROVED. SUCH PROCESS SHALL INCLUDE INDIVIDUAL INSPECTIONS AND DOCUMENT
REVIEW TO ENSURE THAT OWNERS COMPLIED WITH ALL OBLIGATIONS AND RESPONSI-
BILITIES UNDER THE LAW FOR TEMPORARY MAJOR CAPITAL IMPROVEMENT
INCREASES. INSPECTIONS SHALL INCLUDE IN-PERSON CONFIRMATION THAT SUCH
IMPROVEMENTS HAVE BEEN COMPLETED IN SUCH WAY AS DESCRIBED IN THE APPLI-
CATION.
(C) THE DIVISION SHALL ISSUE A NOTICE TO THE LANDLORD AND ALL THE
TENANTS SIXTY DAYS PRIOR TO THE END OF THE TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASE AND SHALL INCLUDE THE INITIAL APPROVED INCREASE AND
THE TOTAL AMOUNT TO BE REMOVED FROM THE LEGAL REGULATED RENT INCLUSIVE
OF ANY INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES BOARD.
§ 7. Chapter 274 of the laws of 1946, constituting the emergency hous-
ing rent control law, is amended by adding a new section 8-a to read as
follows:
§ 8-A. MAJOR CAPITAL IMPROVEMENTS AND INDIVIDUAL APARTMENT IMPROVE-
MENTS IN RENT REGULATED UNITS. 1. NOTWITHSTANDING ANY OTHER PROVISION
OF LAW TO THE CONTRARY, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL,
THE "DIVISION", SHALL PROMULGATE RULES AND REGULATIONS APPLICABLE TO ALL
RENT REGULATED UNITS THAT SHALL:
(A) ESTABLISH A SCHEDULE OF REASONABLE COSTS FOR MAJOR CAPITAL
IMPROVEMENTS, WHICH SHALL SET A CEILING FOR WHAT CAN BE RECOVERED
THROUGH A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE, BASED ON THE
TYPE OF IMPROVEMENT AND ITS RATE OF DEPRECIATION;
(B) ESTABLISH THE CRITERIA FOR ELIGIBILITY OF A TEMPORARY MAJOR CAPI-
TAL IMPROVEMENT INCREASE INCLUDING THE TYPE OF IMPROVEMENT, WHICH SHALL
BE ESSENTIAL FOR THE PRESERVATION, ENERGY EFFICIENCY, FUNCTIONALITY OR
INFRASTRUCTURE OF THE ENTIRE BUILDING, INCLUDING HEATING, WINDOWS,
PLUMBING AND ROOFING, BUT SHALL NOT BE FOR OPERATIONAL COSTS OR UNNECES-
SARY COSMETIC IMPROVEMENTS. ALLOWABLE IMPROVEMENTS MUST ADDITIONALLY BE
DEPRECIABLE PURSUANT TO THE INTERNAL REVENUE SERVICE, OTHER THAN FOR
ORDINARY REPAIRS, THAT DIRECTLY OR INDIRECTLY BENEFIT ALL TENANTS; AND
NO INCREASE SHALL BE APPROVED FOR GROUP WORK DONE IN INDIVIDUAL APART-
MENTS THAT IS OTHERWISE NOT AN IMPROVEMENT TO AN ENTIRE BUILDING. ONLY
SUCH COSTS THAT ARE ACTUAL, REASONABLE, AND VERIFIABLE MAY BE APPROVED
AS A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE;
(C) REQUIRE THAT ANY TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE
GRANTED PURSUANT TO THESE PROVISIONS BE REDUCED BY AN AMOUNT EQUAL TO
(I) ANY GOVERNMENTAL GRANT RECEIVED BY THE LANDLORD, WHERE SUCH GRANT
COMPENSATES THE LANDLORD FOR ANY IMPROVEMENTS REQUIRED BY A CITY, STATE
OR FEDERAL GOVERNMENT, AN AGENCY OR ANY GRANTING GOVERNMENTAL ENTITY TO
BE EXPENDED FOR IMPROVEMENTS AND (II) ANY INSURANCE PAYMENT RECEIVED BY
THE LANDLORD WHERE SUCH INSURANCE PAYMENT COMPENSATES THE LANDLORD FOR
ANY PART OF THE COSTS OF THE IMPROVEMENTS;
(D) PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS VIOLATIONS OF
THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM CODE), NEW YORK
CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING MAINTENANCE CODES,
IF APPLICABLE;
S. 6458 32 A. 8281
(E) PROHIBIT INDIVIDUAL APARTMENT IMPROVEMENT INCREASES FOR HOUSING
ACCOMMODATIONS WITH OUTSTANDING HAZARDOUS OR IMMEDIATELY HAZARDOUS
VIOLATIONS OF THE UNIFORM FIRE PREVENTION AND BUILDING CODE (UNIFORM
CODE), NEW YORK CITY FIRE CODE, OR NEW YORK CITY BUILDING AND HOUSING
MAINTENANCE CODES, IF APPLICABLE;
(F) PROHIBIT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES FOR BUILD-
INGS WITH THIRTY-FIVE PER CENTUM OR FEWER RENT-REGULATED UNITS;
(G) ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE FIXED TO THE UNIT AND SHALL CEASE THIRTY YEARS FROM THE DATE THE
INCREASE BECAME EFFECTIVE. TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES
SHALL BE ADDED TO THE LEGAL REGULATED RENT AS A TEMPORARY INCREASE AND
SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY YEARS FROM THE
DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY INCREASES GRANTED BY
THE LOCAL RENT GUIDELINES BOARD;
(H) ESTABLISH THAT TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL
BE COLLECTIBLE PROSPECTIVELY SIXTY DAYS FROM THE DATE OF MAILING NOTICE
OF APPROVAL TO THE TENANT. SUCH NOTICE SHALL DISCLOSE THE TOTAL MONTHLY
INCREASE IN RENT AND THE FIRST MONTH IN WHICH THE TENANT WOULD BE
REQUIRED TO PAY THE TEMPORARY INCREASE. AN APPROVAL FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE SHALL NOT INCLUDE RETROACTIVE
PAYMENTS. THE COLLECTION OF ANY INCREASE SHALL NOT EXCEED TWO PERCENT IN
ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE OVER
THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS, WITH COLLECTABILITY
OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR
INCREMENTS AND ADDED TO THE RENT AS ESTABLISHED OR SET IN FUTURE YEARS.
UPON VACANCY, THE LANDLORD MAY ADD ANY REMAINING BALANCE OF THE TEMPO-
RARY MAJOR CAPITAL IMPROVEMENT INCREASES TO THE LEGAL REGULATED RENT.
NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, THE COLLECTION OF ANY
RENT INCREASES DUE TO ANY MAJOR CAPITAL IMPROVEMENTS APPROVED ON OR
AFTER JUNE 16, 2012 AND BEFORE JUNE 16, 2019 SHALL NOT EXCEED TWO
PERCENT IN ANY YEAR BEGINNING ON OR AFTER SEPTEMBER 1, 2019 FOR ANY
TENANT IN OCCUPANCY ON THE DATE THE MAJOR CAPITAL IMPROVEMENT WAS
APPROVED;
(I) ENSURE THAT THE APPLICATION PROCEDURE FOR TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASES SHALL INCLUDE AN ITEMIZED LIST OF WORK PERFORMED
AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF SUCH WORK;
(J) PROVIDE, THAT WHERE AN APPLICATION FOR A MAJOR CAPITAL IMPROVEMENT
RENT INCREASE HAS BEEN FILED, A TENANT SHALL HAVE SIXTY DAYS FROM THE
DATE OF MAILING OF A NOTICE OF A PROCEEDING IN WHICH TO ANSWER OR REPLY;
(K) ESTABLISH A NOTIFICATION AND DOCUMENTATION PROCEDURE FOR INDIVID-
UAL APARTMENT IMPROVEMENTS THAT REQUIRES AN ITEMIZED LIST OF WORK
PERFORMED AND A DESCRIPTION OR EXPLANATION OF THE REASON OR PURPOSE OF
SUCH WORK, INCLUSIVE OF PHOTOGRAPHIC EVIDENCE DOCUMENTING THE CONDITION
PRIOR TO AND AFTER THE COMPLETION OF THE PERFORMED WORK. PROVIDE FOR THE
CENTRALIZED ELECTRONIC RETENTION OF SUCH DOCUMENTATION AND ANY OTHER
SUPPORTING DOCUMENTATION TO BE MADE AVAILABLE IN CASES PERTAINING TO THE
ADJUSTMENT OF LEGAL REGULATED RENTS; AND
(L) ESTABLISH A FORM FOR A TEMPORARY INDIVIDUAL APARTMENT IMPROVEMENT
RENT INCREASE FOR A TENANT IN OCCUPANCY WHICH SHALL BE USED BY LANDLORDS
TO OBTAIN WRITTEN INFORMED CONSENT THAT SHALL INCLUDE THE ESTIMATED
TOTAL COST OF THE IMPROVEMENT AND THE ESTIMATED MONTHLY RENT INCREASE.
SUCH CONSENT SHALL BE EXECUTED IN THE TENANT'S PRIMARY LANGUAGE. SUCH
FORM SHALL BE COMPLETED AND PRESERVED IN THE CENTRALIZED ELECTRONIC
RETENTION SYSTEM. NOTHING HEREIN SHALL RELIEVE A LANDLORD, LESSOR, OR
AGENT THEREOF OF HIS OR HER DUTY TO RETAIN PROPER DOCUMENTATION OF ALL
S. 6458 33 A. 8281
IMPROVEMENTS PERFORMED OR ANY RENT INCREASES RESULTING FROM SAID
IMPROVEMENTS.
2. THE DIVISION SHALL ESTABLISH AN ANNUAL INSPECTION AND AUDIT PROCESS
WHICH SHALL REVIEW TWENTY-FIVE PERCENT OF APPLICATIONS FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE THAT HAVE BEEN SUBMITTED AND
APPROVED. SUCH PROCESS SHALL INCLUDE INDIVIDUAL INSPECTIONS AND DOCUMENT
REVIEW TO ENSURE THAT OWNERS COMPLIED WITH ALL OBLIGATIONS AND RESPONSI-
BILITIES UNDER THE LAW FOR TEMPORARY MAJOR CAPITAL IMPROVEMENT
INCREASES. INSPECTIONS SHALL INCLUDE IN-PERSON CONFIRMATION THAT SUCH
IMPROVEMENTS HAVE BEEN COMPLETED IN SUCH WAY AS DESCRIBED IN THE APPLI-
CATION.
3. THE DIVISION SHALL ISSUE A NOTICE TO THE LANDLORD AND ALL THE
TENANTS SIXTY DAYS PRIOR TO THE END OF THE TEMPORARY MAJOR CAPITAL
IMPROVEMENT INCREASE AND SHALL INCLUDE THE INITIAL APPROVED INCREASE AND
THE TOTAL AMOUNT TO BE REMOVED FROM THE LEGAL REGULATED RENT INCLUSIVE
OF ANY INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES BOARD.
§ 8. Paragraph 2 of subdivision 3-a and subparagraphs 7 and 8 of the
second undesignated paragraph of paragraph (a) of subdivision 4 of
section 4 of chapter 274 of the laws of 1946, constituting the emergency
housing rent control law, paragraph 2 of subdivision 3-a as amended by
chapter 337 of the laws of 1961, subparagraph 8 of the second undesig-
nated paragraph of paragraph (a) of subdivision 4 as amended by section
25 of part B of chapter 97 of the laws of 2011 and subparagraph 7 of the
second undesignated paragraph of paragraph (a) of subdivision 4 as
amended by section 32 of part A of chapter 20 of the laws of 2015, are
amended to read as follows:
(2) the amount of increases in maximum rent authorized by order
because of increases in dwelling space, services, furniture, furnishings
or equipment[, or major capital improvements] AND THE AMOUNT OF THE
TEMPORARY INCREASE AUTHORIZED BY ORDER BECAUSE OF A MAJOR CAPITAL
IMPROVEMENT.
(7) there has been since March first, nineteen hundred fifty, a major
capital improvement [required] ESSENTIAL for the [operation,] preserva-
tion [or maintenance of the structure], ENERGY EFFICIENCY, FUNCTIONALI-
TY, OR INFRASTRUCTURE OF THE ENTIRE BUILDING, IMPROVEMENT OF THE STRUC-
TURE INCLUDING HEATING, WINDOWS, PLUMBING AND ROOFING, BUT SHALL NOT BE
FOR OPERATIONAL COSTS OR UNNECESSARY COSMETIC IMPROVEMENTS; which for
any order of the commissioner issued after the effective date of the
[rent act of 2015] CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT
AMENDED THIS PARAGRAPH the cost of such improvement shall be amortized
over [an eight-year] A TWELVE-YEAR period for buildings with thirty-five
or fewer units or a [nine] TWELVE AND ONE-HALF year period for buildings
with more than thirty-five units, AND SHALL BE REMOVED FROM THE LEGAL
REGULATED RENT THIRTY YEARS FROM THE DATE THE INCREASE BECAME EFFECTIVE
INCLUSIVE OF ANY INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES
BOARD. TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL BE COLLECT-
IBLE PROSPECTIVELY SIXTY DAYS FROM THE DATE OF MAILING NOTICE OF
APPROVAL TO THE TENANT. SUCH NOTICE SHALL DISCLOSE THE TOTAL MONTHLY
INCREASE IN RENT AND THE FIRST MONTH IN WHICH THE TENANT WOULD BE
REQUIRED TO PAY THE TEMPORARY INCREASE. AN APPROVAL FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE SHALL NOT INCLUDE RETROACTIVE
PAYMENTS. THE COLLECTION OF ANY INCREASE SHALL NOT EXCEED TWO PERCENT IN
ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE OVER
THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS, WITH COLLECTABILITY
OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR
INCREMENTS AND ADDED TO THE RENT AS ESTABLISHED OR SET IN FUTURE YEARS.
S. 6458 34 A. 8281
UPON VACANCY, THE LANDLORD MAY ADD ANY REMAINING BALANCE OF THE TEMPO-
RARY MAJOR CAPITAL IMPROVEMENT INCREASE TO THE LEGAL REGULATED RENT.
NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, THE COLLECTION OF ANY
RENT INCREASES DUE TO ANY MAJOR CAPITAL IMPROVEMENTS APPROVED ON OR
AFTER JUNE 16, 2012 AND BEFORE JUNE 16, 2019 SHALL NOT EXCEED TWO
PERCENT IN ANY YEAR BEGINNING ON OR AFTER SEPTEMBER 1, 2019 FOR ANY
TENANT IN OCCUPANCY ON THE DATE THE MAJOR CAPITAL IMPROVEMENT WAS
APPROVED; or (8) there has been since March first, nineteen hundred
fifty, in structures containing more than four housing accommodations,
other improvements made with the express INFORMED consent of the tenants
in occupancy of at least seventy-five per centum of the housing accommo-
dations, provided, however, that no adjustment granted hereunder shall
exceed [fifteen] TWO per centum unless the tenants have agreed to a
higher percentage of increase, as herein provided;
§ 9. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as amended by section 30 of part A of
chapter 20 of the laws of 2015, is amended to read as follows:
(3) there has been since January first, nineteen hundred seventy-four
a major capital improvement [required for the operation, preservation or
maintenance of the structure] ESSENTIAL FOR THE PRESERVATION, ENERGY
EFFICIENCY, FUNCTIONALITY, OR INFRASTRUCTURE OF THE ENTIRE BUILDING,
IMPROVEMENT OF THE STRUCTURE INCLUDING HEATING, WINDOWS, PLUMBING AND
ROOFING, BUT SHALL NOT BE FOR OPERATION COSTS OR UNNECESSARY COSMETIC
IMPROVEMENTS. An adjustment under this paragraph shall be in an amount
sufficient to amortize the cost of the improvements pursuant to this
paragraph over [an eight-year] A TWELVE-YEAR period for a building with
thirty-five or fewer housing accommodations, or a [nine-year] TWELVE AND
ONE-HALF period for a building with more than thirty-five housing accom-
modations AND SHALL BE REMOVED FROM THE LEGAL REGULATED RENT THIRTY
YEARS FROM THE DATE THE INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY
INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES BOARD, for any
determination issued by the division of housing and community renewal
after the effective date of the [rent act of 2015] CHAPTER OF THE LAWS
OF TWO THOUSAND NINETEEN THAT AMENDED THIS PARAGRAPH; THE COLLECTION OF
ANY INCREASE SHALL NOT EXCEED TWO PERCENT IN ANY YEAR FROM THE EFFECTIVE
DATE OF THE ORDER GRANTING THE INCREASE OVER THE RENT SET FORTH IN THE
SCHEDULE OF GROSS RENTS, WITH COLLECTABILITY OF ANY DOLLAR EXCESS ABOVE
SAID SUM TO BE SPREAD FORWARD IN SIMILAR INCREMENTS AND ADDED TO THE
RENT AS ESTABLISHED OR SET IN FUTURE YEARS. UPON VACANCY, THE LANDLORD
MAY ADD ANY REMAINING BALANCE OF THE TEMPORARY MAJOR CAPITAL IMPROVEMENT
INCREASE TO THE LEGAL REGULATED RENT. NOTWITHSTANDING ANY OTHER
PROVISION OF THE LAW, THE COLLECTION OF ANY RENT INCREASES DUE TO ANY
MAJOR CAPITAL IMPROVEMENTS APPROVED ON OR AFTER JUNE 16, 2012 AND BEFORE
JUNE 16, 2019 SHALL NOT EXCEED TWO PERCENT IN ANY YEAR BEGINNING ON OR
AFTER SEPTEMBER 1, 2019 FOR ANY TENANT IN OCCUPANCY ON THE DATE THE
MAJOR CAPITAL IMPROVEMENT WAS APPROVED, or
§ 10. Subparagraph (g) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
section 31 of part A of chapter 20 of the laws of 2015, is amended to
read as follows:
(g) There has been since July first, nineteen hundred seventy, a major
capital improvement [required] ESSENTIAL for the [operation,] preserva-
tion [or maintenance of the structure] ENERGY EFFICIENCY, FUNCTIONALITY,
OR INFRASTRUCTURE OF THE ENTIRE BUILDING, IMPROVEMENT OF THE STRUCTURE
INCLUDING HEATING, WINDOWS, PLUMBING AND ROOFING BUT SHALL NOT BE FOR
S. 6458 35 A. 8281
OPERATIONAL COSTS OR UNNECESSARY COSMETIC IMPROVEMENTS. [An adjustment]
THE TEMPORARY INCREASE BASED UPON A MAJOR CAPITAL IMPROVEMENT under this
subparagraph [(g)] for any order of the commissioner issued after the
effective date of the [rent act of 2015] CHAPTER OF THE LAWS OF TWO
THOUSAND NINETEEN THAT AMENDED THIS SUBPARAGRAPH shall be in an amount
sufficient to amortize the cost of the improvements pursuant to this
subparagraph (g) over [an eight-year] A TWELVE-YEAR period for buildings
with thirty-five or fewer units or a [nine] TWELVE AND ONE-HALF year
period for buildings with more than thirty-five units, AND SHALL BE
REMOVED FROM THE LEGAL REGULATED RENT THIRTY YEARS FROM THE DATE THE
INCREASE BECAME EFFECTIVE INCLUSIVE OF ANY INCREASES GRANTED BY THE
APPLICABLE RENT GUIDELINES BOARD. TEMPORARY MAJOR CAPITAL IMPROVEMENT
INCREASES SHALL BE COLLECTIBLE PROSPECTIVELY SIXTY DAYS FROM THE DATE OF
MAILING NOTICE OF APPROVAL TO THE TENANT. SUCH NOTICE SHALL DISCLOSE THE
TOTAL MONTHLY INCREASE IN RENT AND THE FIRST MONTH IN WHICH THE TENANT
WOULD BE REQUIRED TO PAY THE TEMPORARY INCREASE. AN APPROVAL FOR A
TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE SHALL NOT INCLUDE RETROAC-
TIVE PAYMENTS. THE COLLECTION OF ANY INCREASE SHALL NOT EXCEED TWO
PERCENT IN ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE
INCREASE OVER THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS, WITH
COLLECTABILITY OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD
IN SIMILAR INCREMENTS AND ADDED TO THE RENT AS ESTABLISHED OR SET IN
FUTURE YEARS. UPON VACANCY, THE LANDLORD MAY ADD ANY REMAINING BALANCE
OF THE TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE TO THE LEGAL REGU-
LATED RENT. NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, THE
COLLECTION OF ANY RENT INCREASES DUE TO ANY MAJOR CAPITAL IMPROVEMENTS
APPROVED ON OR AFTER JUNE 16, 2012 AND BEFORE JUNE 16, 2019 SHALL NOT
EXCEED TWO PERCENT IN ANY YEAR BEGINNING ON OR AFTER SEPTEMBER 1, 2019
FOR ANY TENANT IN OCCUPANCY ON THE DATE THE MAJOR CAPITAL IMPROVEMENT
WAS APPROVED, or
§ 11. Paragraph 6 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 29 of part A
of chapter 20 of the laws of 2015, is amended to read as follows:
(6) provides criteria whereby the commissioner may act upon applica-
tions by owners for increases in excess of the level of fair rent
increase established under this law provided, however, that such crite-
ria shall provide (a) as to hardship applications, for a finding that
the level of fair rent increase is not sufficient to enable the owner to
maintain approximately the same average annual net income (which shall
be computed without regard to debt service, financing costs or manage-
ment fees) for the three year period ending on or within six months of
the date of an application pursuant to such criteria as compared with
annual net income, which prevailed on the average over the period nine-
teen hundred sixty-eight through nineteen hundred seventy, or for the
first three years of operation if the building was completed since nine-
teen hundred sixty-eight or for the first three fiscal years after a
transfer of title to a new owner provided the new owner can establish to
the satisfaction of the commissioner that he or she acquired title to
the building as a result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite records for the fiscal
years nineteen hundred sixty-eight through nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in title and
further provided that the new owner can provide financial data covering
a minimum of six years under his or her continuous and uninterrupted
operation of the building to meet the three year to three year compar-
ative test periods herein provided; and (b) as to completed building-
S. 6458 36 A. 8281
wide major capital improvements, for a finding that such improvements
are deemed depreciable under the Internal Revenue Code and that the cost
is to be amortized over [an eight-year] A TWELVE-YEAR period for a
building with thirty-five or fewer housing accommodations, or a [nine-
year] TWELVE AND ONE-HALF-YEAR period for a building with more than
thirty-five housing accommodations, for any determination issued by the
division of housing and community renewal after the effective date of
the [rent act of 2015,] THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN
THAT AMENDED THIS PARAGRAPH AND SHALL BE REMOVED FROM THE LEGAL REGU-
LATED RENT THIRTY YEARS FROM THE DATE THE INCREASE BECAME EFFECTIVE
INCLUSIVE OF ANY INCREASES GRANTED BY THE APPLICABLE RENT GUIDELINES
BOARD. TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASES SHALL BE COLLECT-
IBLE PROSPECTIVELY SIXTY DAYS FROM THE DATE OF MAILING NOTICE OF
APPROVAL TO THE TENANT. SUCH NOTICE SHALL DISCLOSE THE TOTAL MONTHLY
INCREASE IN RENT AND THE FIRST MONTH IN WHICH THE TENANT WOULD BE
REQUIRED TO PAY THE TEMPORARY INCREASE. AN APPROVAL FOR A TEMPORARY
MAJOR CAPITAL IMPROVEMENT INCREASE SHALL NOT INCLUDE RETROACTIVE
PAYMENTS. THE COLLECTION OF ANY INCREASE SHALL NOT EXCEED TWO PERCENT IN
ANY YEAR FROM THE EFFECTIVE DATE OF THE ORDER GRANTING THE INCREASE OVER
THE RENT SET FORTH IN THE SCHEDULE OF GROSS RENTS, WITH COLLECTABILITY
OF ANY DOLLAR EXCESS ABOVE SAID SUM TO BE SPREAD FORWARD IN SIMILAR
INCREMENTS AND ADDED TO THE RENT AS ESTABLISHED OR SET IN FUTURE YEARS.
UPON VACANCY, THE LANDLORD MAY ADD ANY REMAINING BALANCE OF THE TEMPO-
RARY MAJOR CAPITAL IMPROVEMENT INCREASE TO THE LEGAL REGULATED RENT.
NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW, THE COLLECTION OF ANY
RENT INCREASES DUE TO ANY MAJOR CAPITAL IMPROVEMENTS APPROVED ON OR
AFTER JUNE 16, 2012 AND BEFORE JUNE 16, 2019 SHALL NOT EXCEED TWO
PERCENT IN ANY YEAR BEGINNING ON OR AFTER SEPTEMBER 1, 2019 FOR ANY
TENANT IN OCCUPANCY ON THE DATE THE MAJOR CAPITAL IMPROVEMENT WAS
APPROVED or based upon cash purchase price exclusive of interest or
service charges. Notwithstanding anything to the contrary contained
herein, no hardship increase granted pursuant to this paragraph shall,
when added to the annual gross rents, as determined by the commissioner,
exceed the sum of, (i) the annual operating expenses, (ii) an allowance
for management services as determined by the commissioner, (iii) actual
annual mortgage debt service (interest and amortization) on its indebt-
edness to a lending institution, an insurance company, a retirement fund
or welfare fund which is operated under the supervision of the banking
or insurance laws of the state of New York or the United States, and
(iv) eight and one-half percent of that portion of the fair market value
of the property which exceeds the unpaid principal amount of the mort-
gage indebtedness referred to in subparagraph (iii) of this paragraph.
Fair market value for the purposes of this paragraph shall be six times
the annual gross rent. The collection of any increase in the stabilized
rent for any apartment pursuant to this paragraph shall not exceed six
percent in any year from the effective date of the order granting the
increase over the rent set forth in the schedule of gross rents, with
collectability of any dollar excess above said sum to be spread forward
in similar increments and added to the stabilized rent as established or
set in future years;
§ 12. Paragraph 6 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by section 29 of part A
of chapter 20 of the laws of 2015, is amended to read as follows:
(6) provides criteria whereby the commissioner may act upon applica-
tions by owners for increases in excess of the level of fair rent
increase established under this law provided, however, that such crite-
S. 6458 37 A. 8281
ria shall provide (a) as to hardship applications, for a finding that
the level of fair rent increase is not sufficient to enable the owner to
maintain approximately the same average annual net income (which shall
be computed without regard to debt service, financing costs or manage-
ment fees) for the three year period ending on or within six months of
the date of an application pursuant to such criteria as compared with
annual net income, which prevailed on the average over the period nine-
teen hundred sixty-eight through nineteen hundred seventy, or for the
first three years of operation if the building was completed since nine-
teen hundred sixty-eight or for the first three fiscal years after a
transfer of title to a new owner provided the new owner can establish to
the satisfaction of the commissioner that he or she acquired title to
the building as a result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite records for the fiscal
years nineteen hundred sixty-eight through nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in title and
further provided that the new owner can provide financial data covering
a minimum of six years under his or her continuous and uninterrupted
operation of the building to meet the three year to three year compar-
ative test periods herein provided; and (b) as to completed building-
wide major capital improvements, for a finding that such improvements
are deemed depreciable under the Internal Revenue Code and that the cost
is to be amortized over an eight-year period for a building with thir-
ty-five or fewer housing accommodations, or a nine-year period for a
building with more than thirty-five housing accommodations, for any
determination issued by the division of housing and community renewal
after the effective date of the rent act of 2015, based upon cash
purchase price exclusive of interest or service charges. WHERE AN
APPLICATION FOR A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE HAS BEEN
FILED, A TENANT SHALL HAVE SIXTY DAYS FROM THE DATE OF MAILING OF A
NOTICE OF A PROCEEDING IN WHICH TO ANSWER OR REPLY. THE STATE DIVISION
OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE ANY RESPONDING TENANT
WITH THE REASONS FOR THE DIVISION'S APPROVAL OR DENIAL OF SUCH APPLICA-
TION. Notwithstanding anything to the contrary contained herein, no
hardship increase granted pursuant to this paragraph shall, when added
to the annual gross rents, as determined by the commissioner, exceed the
sum of, (i) the annual operating expenses, (ii) an allowance for manage-
ment services as determined by the commissioner, (iii) actual annual
mortgage debt service (interest and amortization) on its indebtedness to
a lending institution, an insurance company, a retirement fund or
welfare fund which is operated under the supervision of the banking or
insurance laws of the state of New York or the United States, and (iv)
eight and one-half percent of that portion of the fair market value of
the property which exceeds the unpaid principal amount of the mortgage
indebtedness referred to in subparagraph (iii) of this paragraph. Fair
market value for the purposes of this paragraph shall be six times the
annual gross rent. The collection of any increase in the stabilized rent
for any apartment pursuant to this paragraph shall not exceed six
percent in any year from the effective date of the order granting the
increase over the rent set forth in the schedule of gross rents, with
collectability of any dollar excess above said sum to be spread forward
in similar increments and added to the stabilized rent as established or
set in future years;
§ 13. Subdivision d of section 6 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of nine-
S. 6458 38 A. 8281
teen seventy-four, is amended by adding a new paragraph 3-a to read as
follows:
(3-A) AN APPLICATION FOR A TEMPORARY MAJOR CAPITAL IMPROVEMENT
INCREASE HAS BEEN FILED, A TENANT SHALL HAVE SIXTY DAYS FROM THE DATE OF
MAILING OF A NOTICE OF A PROCEEDING IN WHICH TO ANSWER OR REPLY. THE
STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE ANY
RESPONDING TENANT WITH THE REASONS FOR THE DIVISION'S APPROVAL OR DENIAL
OF SUCH APPLICATION; OR
§ 14. Subparagraph 7 of the second undesignated paragraph of paragraph
(a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946,
constituting the emergency housing rent control law, as amended by
section 32 of part A of chapter 20 of the laws of 2015, is amended to
read as follows:
(7) there has been since March first, nineteen hundred fifty, a major
capital improvement required for the operation, preservation or mainte-
nance of the structure; which for any order of the commissioner issued
after the effective date of the rent act of 2015 the cost of such
improvement shall be amortized over an eight-year period for buildings
with thirty-five or fewer units or a nine year period for buildings with
more than thirty-five units, PROVIDED, HOWEVER, WHERE AN APPLICATION FOR
A TEMPORARY MAJOR CAPITAL IMPROVEMENT INCREASE HAS BEEN FILED, A TENANT
SHALL HAVE SIXTY DAYS FROM THE DATE OF MAILING OF A NOTICE OF A PROCEED-
ING IN WHICH TO ANSWER OR REPLY. THE STATE DIVISION OF HOUSING AND
COMMUNITY RENEWAL SHALL PROVIDE ANY RESPONDING TENANT WITH THE REASONS
FOR THE DIVISION'S APPROVAL OR DENIAL OF SUCH APPLICATION; or
§ 15. Subdivision a of section 26-517.1 of the administrative code of
the city of New York, as added by local law number 95 of the city of New
York for the year 1985, is amended to read as follows:
a. The [Department] DEPARTMENT of [Finance] FINANCE shall collect from
the owner of each housing accommodation registered pursuant to [Section]
SECTION 26-517 of this [law] CHAPTER an annual fee in the amount of
[ten] TWENTY dollars per year for each unit subject to this law, in
order to defray costs incurred by the city pursuant to subdivision c of
section eight of the emergency tenant protection act of nineteen hundred
seventy-four.
§ 16. Subdivisions c and d of section 8 of section 4 of chapter 576 of
the laws of 1974 constituting the emergency tenant protection act of
nineteen seventy-four, subdivision c as amended by section 5 of part Z
of chapter 56 of the laws of 2010 and subdivision d as amended by chap-
ter 116 of the laws of 1997, are amended to read as follows:
c. Whenever a city having a population of one million or more has
determined the existence of an emergency pursuant to section three of
this act, the provisions of this act and the New York city rent stabili-
zation law of nineteen hundred sixty-nine shall be administered by the
state division of housing and community renewal as provided in the New
York city rent stabilization law of nineteen hundred sixty-nine, as
amended, or as otherwise provided by law. The costs incurred by the
state division of housing and community renewal in administering such
regulation shall be paid by such city. All payments for such adminis-
tration shall be transmitted to the state division of housing and commu-
nity renewal as follows: on or after April first of each year commencing
with April, nineteen hundred eighty-four, the commissioner of housing
and community renewal shall determine an amount necessary to defray the
division's anticipated annual cost, and one-quarter of such amount shall
be paid by such city on or before July first of such year, one-quarter
of such amount on or before October first of such year, one-quarter of
S. 6458 39 A. 8281
such amount on or before January first of the following year and one-
quarter of such amount on or before March thirty-first of the following
year. After the close of the fiscal year of the state, the commissioner
shall determine the amount of all actual costs incurred in such fiscal
year and shall certify such amount to such city. If such certified
amount shall differ from the amount paid by the city for such fiscal
year, appropriate adjustments shall be made in the next quarterly
payment to be made by such city. In the event that the amount thereof is
not paid to the commissioner as herein prescribed, the commissioner
shall certify the unpaid amount to the comptroller, and the comptroller
shall, to the extent not otherwise prohibited by law, withhold such
amount from any state aid payable to such city. In no event shall the
amount imposed on the owners exceed [ten] TWENTY dollars per unit per
year.
d. The failure to pay the prescribed assessment not to exceed [ten]
TWENTY dollars per unit for any housing accommodation subject to this
act or the New York city rent stabilization law of nineteen hundred
sixty-nine shall constitute a charge due and owing such city, town or
village which has imposed an annual charge for each such housing accom-
modation pursuant to subdivision b of this section. Any such city, town
or village shall be authorized to provide for the enforcement of the
collection of such charges by commencing an action or proceeding for the
recovery of such fees or by the filing of a lien upon the building and
lot. Such methods for the enforcement of the collection of such charges
shall be the sole remedy for the enforcement of this section.
§ 17. Notwithstanding any other provision of law to the contrary, the
increased revenues of ten dollars per unit per year to the commissioner
of the state division of housing and community renewal pursuant to this
act, for the purpose of enforcement of rent regulations, shall be
divided equally by the commissioner between the office of rent adminis-
tration and the office of the tenant protection unit within the division
of housing and community renewal and shall be utilized by the commis-
sioner in addition to and not in substitution for the levels of funding
from all sources provided to the office of rent administration and the
office of the tenant protection unit on the effective date of this act.
§ 18. This act shall take effect immediately; provided, however, that:
(a) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections two, four, eleven, twelve and
fifteen of this act shall expire on the same date as such chapter
expires and shall not affect the expiration of such chapter as provided
under section 26-520 of such law;
(b) provided that the amendments to sections 26-405 and 26-405.1 of
the city rent and rehabilitation law made by sections three, five and
ten of this act shall remain in full force and effect only as long as
the public emergency requiring the regulation and control of residential
rents and evictions continues, as provided in subdivision 3 of section 1
of the local emergency housing rent control act;
(c) 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 and directed to be made and completed
on or before such effective date.
PART L
Section 1. Short title. This act shall be known and may be cited as
the "rent regulation reporting act of 2019".
S. 6458 40 A. 8281
§ 2. Section 20 of the public housing law, as added by chapter 576 of
the laws of 1989, is amended to read as follows:
§ 20. Annual reports. 1. The commissioner shall, on or before October
first in each year, beginning in nineteen hundred ninety, submit one or
more reports to the governor, the temporary president of the senate, the
speaker of the assembly, the minority leader of the senate and minority
leader of the assembly on the activity and implementation of the state
housing assistance programs for the previous fiscal year. In addition,
the commissioner shall, on or before February first in each year, begin-
ning in nineteen hundred ninety-one, submit an interim report which
contains, in tabular format only, the non-narrative data compiled
through November thirtieth of each year. The commissioner shall submit
on or before February first, nineteen hundred ninety a report for the
fiscal year commencing April first, nineteen hundred eighty-eight and
the most up to date non-narrative data, in tabular format only, but in
no event less than the data compiled through September thirtieth, nine-
teen hundred eighty-nine. All such reports shall include, but not be
limited to the low income housing trust fund program, the affordable
home ownership development program, the urban initiatives program, the
rural area revitalization program, the rural rental assistance program,
the homeless housing and assistance program, the housing opportunities
program for the elderly, the state of New York mortgage agency forward
commitment and mortgage insurance programs, the housing finance agency
secured loan rental program, the turnkey/enhanced housing trust fund
program, the special needs housing program, the permanent housing for
the homeless program, the infrastructure development demonstration
program and the mobile home cooperative fund program. For the purpose
of producing such report or reports, the commissioner shall be author-
ized to rely on information provided by each administering agency or
authority. Such report or reports shall, to the extent applicable to a
specific program, include but not be limited to: (i) a narrative for
each program reported describing the program purpose, eligible appli-
cants, eligible areas, income population to be served, and limitations
on funding; (ii) for each eligible applicant receiving funding under the
Housing Trust Fund or the Affordable Home Ownership Development programs
during the year specified herein, such applicant's name and address, a
description of the applicant's contract amount, a narrative description
of the specific activities performed by such applicant, and the income
levels of the occupants to be served by the units all as proposed by the
applicant at the time the contract is awarded; (iii) a description of
the distribution of funds for each category of project funded under each
program; (iv) the number of units or beds under award, under contract,
under construction and completed based on a change in project status
during the year for each program; (v) the number of units or beds
assisted during the year under each program; (vi) the amount and type of
assistance provided for such units or beds placed under contract; (vii)
based on total project costs, the number of units or beds under contract
and assisted through new construction, substantial rehabilitation,
moderate rehabilitation, improvements to existing units or beds, and
through acquisition only for each program; (viii) for the number of
units or beds under contract assisted through new construction, substan-
tial rehabilitation, moderate rehabilitation, improvements to existing
units or beds, and through acquisition only, the level of state assist-
ance expressed as a percentage of total project cost; (ix) for those
units and beds under contract a calculation of the amount of non-state
funds provided expressed as a percentage of total project cost; (x) the
S. 6458 41 A. 8281
number of units or beds completed and under award, under contract and
under construction for each program based on the current program pipe-
line; (xi) for units or beds for which mortgage assistance was provided
by the state of New York mortgage agency, the number of existing and
newly constructed units; and (xii) a list, by program, of units or beds
assisted within each county. To the extent that any law establishing or
appropriating funds for any of the aforementioned programs requires the
commissioner to produce a report containing data substantially similar
to that required herein, this report shall be deemed to satisfy such
other requirements.
2. THE COMMISSIONER SHALL, ON OR BEFORE DECEMBER THIRTY-FIRST, TWO
THOUSAND NINETEEN, AND ON OR BEFORE DECEMBER THIRTY-FIRST IN EACH SUBSE-
QUENT YEAR, SUBMIT AND MAKE PUBLICLY AVAILABLE A REPORT TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND
ON ITS WEBSITE, ON THE IMPLEMENTATION OF THE SYSTEM OF RENT REGULATION
PURSUANT TO CHAPTER FIVE HUNDRED SEVENTY-SIX OF THE LAWS OF NINETEEN
HUNDRED SEVENTY-FOUR, CHAPTER TWO HUNDRED SEVENTY FOUR OF THE LAWS OF
NINETEEN HUNDRED FORTY-SIX, CHAPTER THREE HUNDRED TWENTY-NINE OF THE
LAWS OF NINETEEN HUNDRED SIXTY-THREE, CHAPTER FIVE HUNDRED FIFTY-FIVE OF
THE LAWS OF NINETEEN HUNDRED EIGHTY-TWO, CHAPTER FOUR HUNDRED TWO OF THE
LAWS OF NINETEEN HUNDRED EIGHTY-THREE, CHAPTER ONE HUNDRED SIXTEEN OF
THE LAWS OF NINETEEN HUNDRED NINETY-SEVEN, SECTIONS 26-501, 26-502, AND
26-520 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK AND THE HOUS-
ING STABILITY AND TENANT PROTECTION ACT OF 2019. SUCH REPORT SHALL
INCLUDE BUT NOT BE LIMITED TO: A NARRATIVE DESCRIBING THE PROGRAMS AND
ACTIVITIES UNDERTAKEN BY THE OFFICE OF RENT ADMINISTRATION AND THE
TENANT PROTECTION UNIT, AND ANY OTHER PROGRAMS OR ACTIVITIES UNDERTAKEN
BY THE DIVISION TO IMPLEMENT, ADMINISTER, AND ENFORCE THE SYSTEM OF RENT
REGULATION; AND IN TABULAR FORMAT, FOR EACH OF THE THREE FISCAL YEARS
IMMEDIATELY PRECEDING THE DATE THE REPORT IS DUE: (I) THE NUMBER OF RENT
STABILIZED HOUSING ACCOMMODATIONS WITHIN EACH COUNTY; (II) THE NUMBER OF
RENT CONTROLLED HOUSING ACCOMMODATIONS WITHIN EACH COUNTY; (III) THE
NUMBER OF APPLICATIONS FOR MAJOR CAPITAL IMPROVEMENTS FILED WITH THE
DIVISION, THE NUMBER OF SUCH APPLICATIONS APPROVED AS SUBMITTED, THE
NUMBER OF SUCH APPLICATIONS APPROVED WITH MODIFICATIONS, AND THE NUMBER
OF SUCH APPLICATIONS REJECTED; (IV) THE MEDIAN AND MEAN VALUE OF APPLI-
CATIONS FOR MAJOR CAPITAL IMPROVEMENTS APPROVED; (V) THE NUMBER OF UNITS
WHICH WERE REGISTERED WITH THE DIVISION WHERE THE AMOUNT CHARGED TO AND
PAID BY THE TENANT WAS LESS THAN THE REGISTERED RENT FOR THE HOUSING
ACCOMMODATION; (VI) FOR HOUSING ACCOMMODATIONS THAT WERE REGISTERED WITH
THE DIVISION WHERE THE AMOUNT CHARGED TO AND PAID BY THE TENANT WAS LESS
THAN THE REGISTERED RENT FOR THE HOUSING ACCOMMODATION, THE MEDIAN AND
MEAN DIFFERENCE BETWEEN THE REGISTERED RENT FOR A HOUSING ACCOMMODATION
AND THE AMOUNT CHARGED TO AND PAID BY THE TENANT; (VII) THE MEDIAN AND
MEAN REGISTERED RENT FOR HOUSING ACCOMMODATIONS FOR WHICH THE LEASE WAS
RENEWED BY AN EXISTING TENANT; (VIII) THE MEDIAN AND MEAN REGISTERED
RENT FOR HOUSING ACCOMMODATIONS FOR WHICH A LEASE WAS SIGNED BY A NEW
TENANT AFTER A VACANCY; (IX) THE MEDIAN AND MEAN INCREASE, IN DOLLARS
AND AS A PERCENTAGE, IN THE REGISTERED RENT FOR HOUSING ACCOMMODATIONS
WHERE THE LEASE WAS SIGNED BY A NEW TENANT AFTER A VACANCY; (X) THE
MEDIAN AND MEAN INCREASE, IN DOLLARS AND AS A PERCENTAGE, IN THE REGIS-
TERED RENT FOR HOUSING ACCOMMODATIONS WHERE THE LEASE WAS SIGNED BY A
NEW TENANT AFTER A VACANCY, WHERE THE AMOUNT CHANGED TO AND PAID BY THE
PRIOR TENANT WAS THE FULL REGISTERED RENT; (XI) THE MEDIAN AND MEAN
INCREASE, IN DOLLARS AND AS A PERCENTAGE, IN THE REGISTERED RENT FOR
HOUSING ACCOMMODATIONS WHERE THE LEASE WAS SIGNED BY A NEW TENANT AFTER
S. 6458 42 A. 8281
A VACANCY, WHERE THE AMOUNT CHANGED TO AND PAID BY THE PRIOR TENANT WAS
LESS THAN THE REGISTERED RENT; (XII) THE NUMBER OF RENT OVERCHARGE
COMPLAINTS PROCESSED BY THE DIVISION; (XIII) THE NUMBER OF FINAL OVER-
CHARGE ORDERS GRANTING AN OVERCHARGE; (XIV) THE NUMBER OF INVESTIGATIONS
COMMENCED BY THE TENANT PROTECTION UNIT, THE AGGREGATE NUMBER OF RENT
STABILIZED OR RENT CONTROLLED HOUSING ACCOMMODATIONS IN EACH COUNTY THAT
WERE THE SUBJECT OF SUCH INVESTIGATIONS, AND THE DISPOSITIONS OF SUCH
INVESTIGATIONS. AT THE TIME THE REPORT IS DUE, THE COMMISSIONER SHALL
MAKE AVAILABLE TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE,
THE SPEAKER OF THE ASSEMBLY, AND SHALL MAKE PUBLICLY AVAILABLE, AND ON
ITS WEBSITE IN MACHINE READABLE FORMAT, THE DATA USED TO TABULATE THE
FIGURES REQUIRED TO BE INCLUDED IN THE REPORT, TAKING ANY STEPS NECES-
SARY TO PROTECT CONFIDENTIAL INFORMATION REGARDING INDIVIDUAL BUILDINGS,
HOUSING ACCOMMODATIONS, PROPERTY OWNERS, AND TENANTS.
§ 3. This act shall take effect immediately.
PART M
Section 1. Short title. This act shall be known and may be cited as
the "statewide housing security and tenant protection act of 2019".
§ 2. Section 223-b of the real property law, as amended by chapter 584
of the laws of 1991, subdivision 5-a as added by chapter 466 of the laws
of 2005, is amended to read as follows:
§ 223-b. Retaliation by landlord against tenant. 1. No landlord of
premises or units to which this section is applicable shall serve a
notice to quit upon any tenant or commence any action to recover real
property or summary proceeding to recover possession of real property in
retaliation for:
a. A good faith complaint, by or in behalf of the tenant, to THE LAND-
LORD, THE LANDLORD'S AGENT OR a governmental authority of the landlord's
alleged violation of any health or safety law, regulation, code, or
ordinance, THE WARRANTY OF HABITABILITY UNDER SECTION TWO HUNDRED THIR-
TY-FIVE-B OF THIS ARTICLE, THE DUTY TO REPAIR UNDER SECTIONS SEVENTY-
EIGHT, SEVENTY-NINE, AND EIGHTY OF THE MULTIPLE DWELLING LAW OR SECTION
ONE HUNDRED SEVENTY-FOUR OF THE MULTIPLE RESIDENCE LAW, or any law or
regulation which has as its objective the regulation of premises used
for dwelling purposes or which pertains to the offense of rent gouging
in the third, second or first degree; or
b. Actions taken in good faith, by or in behalf of the tenant, to
secure or enforce any rights under the lease or rental agreement, THE
WARRANTY OF HABITABILITY under section two hundred thirty-five-b of this
[chapter] ARTICLE, THE DUTY TO REPAIR UNDER SECTIONS SEVENTY-EIGHT,
SEVENTY-NINE, AND EIGHTY OF THE MULTIPLE DWELLING LAW OR SECTION ONE
HUNDRED SEVENTY-FOUR OF THE MULTIPLE RESIDENCE LAW, or under any other
law of the state of New York, or of its governmental subdivisions, or of
the United States which has as its objective the regulation of premises
used for dwelling purposes or which pertains to the offense of rent
gouging in the third, second or first degree; or
c. The tenant's participation in the activities of a tenant's organ-
ization.
2. No landlord [or] OF premises or units to which this section is
applicable OR SUCH LANDLORD'S AGENT shall substantially alter the terms
of the tenancy in retaliation for any actions set forth in paragraphs a,
b, and c of subdivision one of this section. Substantial alteration
shall include, but is not limited to, the refusal to continue a tenancy
of the tenant [or], upon expiration of the tenant's lease, to renew the
S. 6458 43 A. 8281
lease or offer a new lease, OR OFFERING A NEW LEASE WITH AN UNREASONABLE
RENT INCREASE; provided, however, that a landlord shall not be required
under this section to offer a new lease or a lease renewal for a term
greater than one year [and after such extension of a tenancy for one
year shall not be required to further extend or continue such tenancy].
3. A landlord shall be subject to a civil action for damages, ATTOR-
NEY'S FEES AND COSTS and other appropriate relief, including injunctive
and other equitable remedies, as may be determined by a court of compe-
tent jurisdiction in any case in which the landlord has violated the
provisions of this section.
4. In any action to recover real property or summary proceeding to
recover possession of real property, judgment shall be entered for the
tenant if the court finds that the landlord is acting in retaliation for
any action set forth in paragraphs a, b, and c of subdivision one of
this section [and further finds that the landlord would not otherwise
have commenced such action or proceeding]. Retaliation shall be asserted
as an affirmative defense in such action or proceeding. The tenant shall
not be relieved of the obligation to pay any rent for which he is other-
wise liable.
5. In an action or proceeding instituted against a tenant of premises
or a unit to which this section is applicable, a rebuttable presumption
that the landlord is acting in retaliation shall be created if the
tenant establishes that the landlord served a notice to quit, or insti-
tuted an action or proceeding to recover possession, or attempted to
substantially alter the terms of the tenancy, within [six months] ONE
YEAR after:
a. A good faith complaint was made, by or in behalf of the tenant, to
THE LANDLORD, THE LANDLORD'S AGENT OR a governmental authority of the
landlord's violation of any health or safety law, regulation, code, or
ordinance, THE WARRANTY OF HABITABILITY UNDER SECTION TWO HUNDRED THIR-
TY-FIVE-B OF THIS ARTICLE, THE DUTY TO REPAIR UNDER SECTIONS SEVENTY-
EIGHT, SEVENTY-NINE, AND EIGHTY OF THE MULTIPLE DWELLING LAW OR SECTION
ONE HUNDRED SEVENTY-FOUR OF THE MULTIPLE RESIDENCE LAW, or any law or
regulation which has as its objective the regulation of premises used
for dwelling purposes or which pertains to the offense of rent gouging
in the third, second or first degree; or
b. The tenant in good faith [commenced an action or proceeding in a
court or administrative body of competent jurisdiction] TOOK ACTION to
secure or enforce against the landlord or his agents any rights under
the lease or rental agreement, THE WARRANTY OF HABITABILITY under
section two hundred thirty-five-b of this [chapter] ARTICLE, THE DUTY TO
REPAIR UNDER SECTIONS SEVENTY-EIGHT, SEVENTY-NINE, AND EIGHTY OF THE
MULTIPLE DWELLING LAW OR SECTION ONE HUNDRED SEVENTY-FOUR OF THE MULTI-
PLE RESIDENCE LAW, or under any other law of the state of New York, or
of its governmental subdivisions, or of the United States which has as
its objective the regulation of premises used for dwelling purposes or
which pertains to the offense of rent gouging in the third, second or
first degree.
c. Judgment under subdivision three or four of this section was
entered for the tenant in a previous action between the parties; or an
inspection was made, an order was entered, or other action was taken as
a result of a complaint or act described in paragraph a or b of this
subdivision.
[But the presumption shall not apply in an action or proceeding based
on the violation by the tenant of the terms and conditions of the lease
or rental agreement, including nonpayment of the agreed-upon rent.]
S. 6458 44 A. 8281
The effect of the presumption shall be to require the landlord to
[provide a credible explanation of] ESTABLISH a non-retaliatory motive
for his acts[. Such an explanation shall overcome and remove the
presumption unless the tenant disproves it] by a preponderance of the
evidence.
5-a. Any lease provision which seeks to assess a fee, penalty or
dollar charge, in addition to the stated rent, against a tenant because
such tenant files a bona fide complaint with THE LANDLORD, THE LAND-
LORD'S AGENT OR a building code officer regarding the condition of such
tenant's leased premises shall be null and void as being against public
policy. A landlord OR AGENT OF THE LANDLORD who seeks to enforce such a
fee, penalty or charge shall be liable to the tenant for triple the
amount of such fee, penalty or charge.
6. This section shall apply to all rental residential premises except
owner-occupied dwellings with less than four units. However, its
provisions shall not be given effect in any case in which it is estab-
lished that the condition from which the complaint or action arose was
caused by the tenant, a member of the tenant's household, or a guest of
the tenant. Nor shall it apply in a case where a tenancy was terminated
pursuant to the terms of a lease as a result of a bona fide transfer of
ownership.
§ 3. The real property law is amended by adding a new section 226-c to
read as follows:
§ 226-C. NOTICE OF RENT INCREASE OR NON-RENEWAL OF RESIDENTIAL TENAN-
CY. 1. WHENEVER A LANDLORD INTENDS TO OFFER TO RENEW THE TENANCY OF AN
OCCUPANT IN A RESIDENTIAL DWELLING UNIT WITH A RENT INCREASE EQUAL TO OR
GREATER THAN FIVE PERCENT ABOVE THE CURRENT RENT, OR THE LANDLORD DOES
NOT INTEND TO RENEW THE TENANCY, THE LANDLORD SHALL PROVIDE WRITTEN
NOTICE AS REQUIRED IN SUBDIVISION TWO OF THIS SECTION. IF THE LANDLORD
FAILS TO PROVIDE TIMELY NOTICE, THE OCCUPANT'S LAWFUL TENANCY SHALL
CONTINUE UNDER THE EXISTING TERMS OF THE TENANCY FROM THE DATE ON WHICH
THE LANDLORD GAVE ACTUAL WRITTEN NOTICE UNTIL THE NOTICE PERIOD HAS
EXPIRED, NOTWITHSTANDING ANY PROVISION OF A LEASE OR OTHER TENANCY
AGREEMENT TO THE CONTRARY.
2. (A) IF THE TENANT HAS OCCUPIED THE UNIT FOR LESS THAN ONE YEAR AND
DOES NOT HAVE A LEASE TERM OF AT LEAST ONE YEAR, THE LANDLORD SHALL
PROVIDE AT LEAST THIRTY DAYS' NOTICE.
(B) IF THE TENANT HAS OCCUPIED THE UNIT FOR MORE THAN ONE YEAR BUT
LESS THAN TWO YEARS, OR HAS A LEASE TERM OF AT LEAST ONE YEAR BUT LESS
THAN TWO YEARS, THE LANDLORD SHALL PROVIDE AT LEAST SIXTY DAYS' NOTICE.
(C) IF THE TENANT HAS OCCUPIED THE UNIT FOR MORE THAN TWO YEARS OR HAS
A LEASE TERM OF AT LEAST TWO YEARS, THE LANDLORD SHALL PROVIDE AT LEAST
NINETY DAYS' NOTICE.
§ 4. The real property law is amended by adding a new section 227-e to
read as follows:
§ 227-E. LANDLORD DUTY TO MITIGATE DAMAGES. IN ANY LEASE OR RENTAL
AGREEMENT, EXCLUDING ANY REAL ESTATE PURCHASE CONTRACT DEFINED IN PARA-
GRAPHS (A), (C) AND (D) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED
SIXTY-ONE OF THIS CHAPTER, COVERING PREMISES OCCUPIED FOR DWELLING
PURPOSES, IF A TENANT VACATES A PREMISES IN VIOLATION OF THE TERMS OF
THE LEASE, THE LANDLORD SHALL, IN GOOD FAITH AND ACCORDING TO THE LAND-
LORD'S RESOURCES AND ABILITIES, TAKE REASONABLE AND CUSTOMARY ACTIONS TO
RENT THE PREMISES AT FAIR MARKET VALUE OR AT THE RATE AGREED TO DURING
THE TERM OF THE TENANCY, WHICHEVER IS LOWER. IF THE LANDLORD RENTS THE
PREMISES AT FAIR MARKET VALUE OR AT THE RATE AGREED TO DURING THE TERM
OF THE TENANCY, THE NEW TENANT'S LEASE SHALL, ONCE IN EFFECT, TERMINATE
S. 6458 45 A. 8281
THE PREVIOUS TENANT'S LEASE AND MITIGATE DAMAGES OTHERWISE RECOVERABLE
AGAINST THE PREVIOUS TENANT BECAUSE OF SUCH TENANT'S VACATING THE PREM-
ISES. THE BURDEN OF PROOF SHALL BE ON THE PARTY SEEKING TO RECOVER
DAMAGES. ANY PROVISION IN A LEASE THAT EXEMPTS A LANDLORD'S DUTY TO
MITIGATE DAMAGES UNDER THIS SECTION SHALL BE VOID AS CONTRARY TO PUBLIC
POLICY.
§ 5. The real property law is amended by adding a new section 227-f to
read as follows:
§ 227-F. DENIAL ON THE BASIS OF INVOLVEMENT IN PRIOR DISPUTES PROHIB-
ITED. 1. NO LANDLORD OF A RESIDENTIAL PREMISES SHALL REFUSE TO RENT OR
OFFER A LEASE TO A POTENTIAL TENANT ON THE BASIS THAT THE POTENTIAL
TENANT WAS INVOLVED IN A PAST OR PENDING LANDLORD-TENANT ACTION OR
SUMMARY PROCEEDING UNDER ARTICLE SEVEN OF THE REAL PROPERTY ACTIONS AND
PROCEEDINGS LAW. THERE SHALL BE A REBUTTABLE PRESUMPTION THAT A PERSON
IS IN VIOLATION OF THIS SECTION IF IT IS ESTABLISHED THAT THE PERSON
REQUESTED INFORMATION FROM A TENANT SCREENING BUREAU RELATING TO A
POTENTIAL TENANT OR OTHERWISE INSPECTED COURT RECORDS RELATING TO A
POTENTIAL TENANT AND THE PERSON SUBSEQUENTLY REFUSES TO RENT OR OFFER A
LEASE TO THE POTENTIAL TENANT.
2. WHENEVER THE ATTORNEY GENERAL SHALL BELIEVE FROM EVIDENCE SATISFAC-
TORY TO HIM OR HER THAT ANY PERSON, FIRM, CORPORATION OR ASSOCIATION OR
AGENT OR EMPLOYEE THEREOF HAS VIOLATED SUBDIVISION ONE OF THIS SECTION,
HE OR SHE MAY BRING AN ACTION OR SPECIAL PROCEEDING IN THE SUPREME COURT
FOR A JUDGMENT ENJOINING THE CONTINUANCE OF SUCH VIOLATION AND FOR A
CIVIL PENALTY OF NOT LESS THAN FIVE HUNDRED DOLLARS, BUT NOT MORE THAN
ONE THOUSAND DOLLARS FOR EACH VIOLATION.
§ 6. Section 232-a of the real property law, as amended by chapter 312
of the laws of 1962, is amended to read as follows:
§ 232-a. Notice to terminate monthly tenancy or tenancy from month to
month in the city of New York. No monthly tenant, or tenant from month
to month, shall hereafter be removed from any lands or buildings in the
city of New York on the grounds of holding over [his] THE TENANT'S term
unless [at least thirty days before the expiration of the term] PURSUANT
TO THE NOTICE PERIOD REQUIRED BY SUBDIVISION TWO OF SECTION TWO HUNDRED
TWENTY-SIX-C OF THIS ARTICLE, the landlord or [his] THE LANDLORD'S agent
serve upon the tenant, in the same manner in which a notice of petition
in summary proceedings is now allowed to be served by law, a notice in
writing to the effect that the landlord elects to terminate the tenancy
and that unless the tenant removes from such premises on the day [on
which his term expires] DESIGNATED IN THE NOTICE, the landlord will
commence summary proceedings under the statute to remove such tenant
therefrom.
§ 7. Section 232-b of the real property law, as added by chapter 813
of the laws of 1942, is amended to read as follows:
§ 232-b. Notification to terminate monthly tenancy or tenancy from
month to month outside the city of New York. A monthly tenancy or tenan-
cy from month to month of any lands or buildings located outside of the
city of New York may be terminated by the [landlord or the] tenant upon
[his] THE TENANT'S notifying the [other] LANDLORD at least one month
before the expiration of the term of [his] THE TENANT'S election to
terminate; provided, however, that no notification shall be necessary to
terminate a tenancy for a definite term.
§ 8. Section 234 of the real property law, as amended by chapter 297
of the laws of 1969, is amended to read as follows:
§ 234. [Tenants' right] RIGHT to recover attorneys' fees in actions or
summary proceedings arising out of leases of residential property.
S. 6458 46 A. 8281
Whenever a lease of residential property shall provide that in any
action or summary proceeding the landlord may recover attorneys' fees
and/or expenses incurred as the result of the failure of the tenant to
perform any covenant or agreement contained in such lease, or that
amounts paid by the landlord therefor shall be paid by the tenant as
additional rent, there shall be implied in such lease a covenant by the
landlord to pay to the tenant the reasonable attorneys' fees and/or
expenses incurred by the tenant as the result of the failure of the
landlord to perform any covenant or agreement on its part to be
performed under the lease or in the successful defense of any action or
summary proceeding commenced by the landlord against the tenant arising
out of the lease, and an agreement that such fees and expenses may be
recovered as provided by law in an action commenced against the landlord
or by way of counterclaim in any action or summary proceeding commenced
by the landlord against the tenant. A LANDLORD MAY NOT RECOVER ATTOR-
NEYS' FEES UPON A DEFAULT JUDGMENT. Any waiver of this section shall be
void as against public policy.
§ 9. Section 235-e of the real property law, as amended by chapter
848 of the laws of 1986, is amended to read as follows:
§ 235-e. Duty [of landlord] to provide A written receipt. (a) Upon the
receipt of THE PAYMENT OF rent for residential premises in the form of
cash, or any instrument other than the personal check of the [tenant]
LESSEE, it shall be the duty of the [landlord] LESSOR, OR ANY AGENT OF
THE LESSOR AUTHORIZED TO RECEIVE RENT, to provide the [payor] LESSEE
with a written receipt containing the following:
1. The date;
2. The amount;
3. The identity of the premises and period for which paid; and
4. The signature and title of the person receiving the rent.
(b) [Where a tenant] A LESSEE MAY REQUEST, in writing, [requests] that
a [landlord] LESSOR provide a receipt for rent paid by personal check[,
it shall be the duty of]. IF SUCH REQUEST IS MADE, the [landlord to]
LESSOR, OR ANY AGENT OF THE LESSOR AUTHORIZED TO RECEIVE RENT, SHALL
provide the [payor] LESSEE with the receipt described in subdivision (a)
of this section [for each such request made in writing]. SUCH REQUEST
SHALL, UNLESS OTHERWISE SPECIFIED BY THE LESSEE, REMAIN IN EFFECT FOR
THE DURATION OF SUCH LESSEE'S TENANCY. THE LESSOR SHALL MAINTAIN A
RECORD OF ALL CASH RECEIPTS FOR RENT FOR AT LEAST THREE YEARS.
(C) IF A PAYMENT OF RENT IS PERSONALLY TRANSMITTED TO A LESSOR, OR AN
AGENT OF A LESSOR AUTHORIZED TO RECEIVE RENT, THE RECEIPT FOR SUCH
PAYMENT SHALL BE ISSUED IMMEDIATELY TO A LESSEE. IF A PAYMENT OF RENT IS
TRANSMITTED INDIRECTLY TO A LESSOR, OR AN AGENT OF A LESSOR AUTHORIZED
TO RECEIVE RENT, A LESSEE SHALL BE PROVIDED WITH A RECEIPT WITHIN
FIFTEEN DAYS OF SUCH LESSOR OR AGENT'S RECEIPT OF A RENT PAYMENT.
(D) IF A LESSOR, OR AN AGENT OF A LESSOR AUTHORIZED TO RECEIVE RENT,
FAILS TO RECEIVE PAYMENT FOR RENT WITHIN FIVE DAYS OF THE DATE SPECIFIED
IN A LEASE AGREEMENT, SUCH LESSOR OR AGENT SHALL SEND THE LESSEE, BY
CERTIFIED MAIL, A WRITTEN NOTICE STATING THE FAILURE TO RECEIVE SUCH
RENT PAYMENT. THE FAILURE OF A LESSOR, OR ANY AGENT OF THE LESSOR
AUTHORIZED TO RECEIVE RENT, TO PROVIDE A LESSEE WITH A WRITTEN NOTICE OF
THE NON-PAYMENT OF RENT MAY BE USED AS AN AFFIRMATIVE DEFENSE BY SUCH
LESSEE IN AN EVICTION PROCEEDING BASED ON THE NON-PAYMENT OF RENT.
§ 10. The real property law is amended by adding a new section 238-a
to read as follows:
§ 238-A. LIMITATION ON FEES. IN RELATION TO A RESIDENTIAL DWELLING
UNIT:
S. 6458 47 A. 8281
1. (A) EXCEPT IN INSTANCES WHERE STATUTES OR REGULATIONS PROVIDE FOR A
PAYMENT, FEE OR CHARGE, NO LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR MAY
DEMAND ANY PAYMENT, FEE, OR CHARGE FOR THE PROCESSING, REVIEW OR ACCEPT-
ANCE OF AN APPLICATION, OR DEMAND ANY OTHER PAYMENT, FEE OR CHARGE
BEFORE OR AT THE BEGINNING OF THE TENANCY, EXCEPT BACKGROUND CHECKS AND
CREDIT CHECKS AS PROVIDED BY PARAGRAPH (B) OF THIS SUBDIVISION, PROVIDED
THAT THIS SUBDIVISION SHALL NOT APPLY TO ENTRANCE FEES CHARGED BY
CONTINUING CARE RETIREMENT COMMUNITIES LICENSED PURSUANT TO ARTICLE
FORTY-SIX OR FORTY-SIX-A OF THE PUBLIC HEALTH LAW, ASSISTED LIVING
PROVIDERS LICENSED PURSUANT TO ARTICLE FORTY-SIX-B OF THE PUBLIC HEALTH
LAW, ADULT CARE FACILITIES LICENSED PURSUANT TO ARTICLE SEVEN OF THE
SOCIAL SERVICES LAW, SENIOR RESIDENTIAL COMMUNITIES THAT HAVE SUBMITTED
AN OFFERING PLAN TO THE ATTORNEY GENERAL, OR NOT-FOR-PROFIT INDEPENDENT
RETIREMENT COMMUNITIES THAT OFFER PERSONAL EMERGENCY RESPONSE, HOUSE-
KEEPING, TRANSPORTATION AND MEALS TO THEIR RESIDENTS.
(B) A LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR MAY CHARGE A FEE OR FEES
TO REIMBURSE COSTS ASSOCIATED WITH CONDUCTING A BACKGROUND CHECK AND
CREDIT CHECK, PROVIDED THE CUMULATIVE FEE OR FEES FOR SUCH CHECKS IS NO
MORE THAN THE ACTUAL COST OF THE BACKGROUND CHECK AND CREDIT CHECK OR
TWENTY DOLLARS, WHICHEVER IS LESS, AND THE LANDLORD, LESSOR, SUB-LESSOR
OR GRANTOR SHALL WAIVE THE FEE OR FEES IF THE POTENTIAL TENANT PROVIDES
A COPY OF A BACKGROUND CHECK OR CREDIT CHECK CONDUCTED WITHIN THE PAST
THIRTY DAYS. THE LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR MAY NOT COLLECT
THE FEE OR FEES UNLESS THE LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR
PROVIDES THE POTENTIAL TENANT WITH A COPY OF THE BACKGROUND CHECK OR
CREDIT CHECK AND THE RECEIPT OR INVOICE FROM THE ENTITY CONDUCTING THE
BACKGROUND CHECK OR CREDIT CHECK.
2. NO LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR MAY DEMAND ANY PAYMENT,
FEE, OR CHARGE FOR THE LATE PAYMENT OF RENT UNLESS THE PAYMENT OF RENT
HAS NOT BEEN MADE WITHIN FIVE DAYS OF THE DATE IT WAS DUE, AND SUCH
PAYMENT, FEE, OR CHARGE SHALL NOT EXCEED FIFTY DOLLARS OR FIVE PERCENT
OF THE MONTHLY RENT, WHICHEVER IS LESS.
3. ANY PROVISION OF A LEASE OR CONTRACT WAIVING OR LIMITING THE
PROVISIONS OF THIS SECTION SHALL BE VOID AS AGAINST PUBLIC POLICY.
§ 11. The real property actions and proceedings law is amended by
adding a new section 702 to read as follows:
§ 702. RENT IN A RESIDENTIAL DWELLING. IN A PROCEEDING RELATING TO A
RESIDENTIAL DWELLING OR HOUSING ACCOMMODATION, THE TERM "RENT" SHALL
MEAN THE MONTHLY OR WEEKLY AMOUNT CHARGED IN CONSIDERATION FOR THE USE
AND OCCUPATION OF A DWELLING PURSUANT TO A WRITTEN OR ORAL RENTAL AGREE-
MENT. NO FEES, CHARGES OR PENALTIES OTHER THAN RENT MAY BE SOUGHT IN A
SUMMARY PROCEEDING PURSUANT TO THIS ARTICLE, NOTWITHSTANDING ANY
LANGUAGE TO THE CONTRARY IN ANY LEASE OR RENTAL AGREEMENT.
§ 12. The opening paragraph and subdivision 2 of section 711 of the
real property actions and proceedings law, the opening paragraph as
amended by chapter 739 of the laws of 1982 and subdivision 2 as added by
chapter 312 of the laws of 1962, are amended to read as follows:
A tenant shall include an occupant of one or more rooms in a rooming
house or a resident, not including a transient occupant, of one or more
rooms in a hotel who has been in possession for thirty consecutive days
or longer[; he]. NO TENANT OR LAWFUL OCCUPANT OF A DWELLING OR HOUSING
ACCOMMODATION shall [not] be removed from possession except in a special
proceeding. A special proceeding may be maintained under this article
upon the following grounds:
2. The tenant has defaulted in the payment of rent, pursuant to the
agreement under which the premises are held, and a WRITTEN demand of the
S. 6458 48 A. 8281
rent has been made[, or] WITH at least [three] FOURTEEN days' notice [in
writing] requiring, in the alternative, the payment of the rent, or the
possession of the premises, has been served upon him as prescribed in
section [735. The landlord may waive his right to proceed upon this
ground only by an express consent in writing to permit the tenant to
continue in possession, which consent shall be revocable at will, in
which event the landlord shall be deemed to have waived his right to
summary dispossess for nonpayment of rent accruing during the time said
consent remains unrevoked] SEVEN HUNDRED THIRTY-FIVE OF THIS ARTICLE.
Any person succeeding to the landlord's interest in the premises may
proceed under this subdivision for rent due his predecessor in interest
if he has a right thereto. Where a tenant dies during the term of the
lease and rent due has not been paid and [no representative or person
has taken possession of the premises and no administrator or executor
has been appointed, the proceeding may be commenced after three months
from the date of death of the tenant by joining the surviving spouse or
if there is none, then one of the surviving issue or if there is none,
then any one of the distributees] THE APARTMENT IS OCCUPIED BY A PERSON
WITH A CLAIM TO POSSESSION, A PROCEEDING MAY BE COMMENCED NAMING THE
OCCUPANTS OF THE APARTMENT SEEKING A POSSESSORY JUDGMENT ONLY AS AGAINST
THE ESTATE. ENTRY OF SUCH A JUDGMENT SHALL BE WITHOUT PREJUDICE TO THE
POSSESSORY CLAIMS OF THE OCCUPANTS, AND ANY WARRANT ISSUED SHALL NOT BE
EFFECTIVE AS AGAINST THE OCCUPANTS.
§ 13. Section 731 of the real property actions and proceedings law is
amended by adding a new subdivision 4 to read as follows:
4. IN AN ACTION PREMISED ON A TENANT DEFAULTING IN THE PAYMENT OF
RENT, PAYMENT TO THE LANDLORD OF THE FULL AMOUNT OF RENT DUE, WHEN SUCH
PAYMENT IS MADE AT ANY TIME PRIOR TO THE HEARING ON THE PETITION, SHALL
BE ACCEPTED BY THE LANDLORD AND RENDERS MOOT THE GROUNDS ON WHICH THE
SPECIAL PROCEEDING WAS COMMENCED.
§ 14. Subdivisions 1, 2, and 3 of section 732 of the real property
actions and proceedings law, as added by chapter 910 of the laws of
1965, are amended to read as follows:
1. The notice of petition shall be returnable before the clerk, and
shall be made returnable within [five] TEN days after its service.
2. If the respondent answers, the clerk shall fix a date for trial or
hearing not less than three nor more than eight days after joinder of
issue, and shall immediately notify by mail the parties or their attor-
neys of such date. If the determination be for the petitioner, the issu-
ance of a warrant shall not be stayed for more than five days from such
determination, EXCEPT AS PROVIDED IN SECTION SEVEN HUNDRED FIFTY-THREE
OF THIS ARTICLE.
3. If the respondent fails to answer within [five] TEN days from the
date of service, as shown by the affidavit or certificate of service of
the notice of petition and petition, the judge shall render judgment in
favor of the petitioner and may stay the issuance of the warrant for a
period of not to exceed ten days from the date of service, EXCEPT AS
PROVIDED IN SECTION SEVEN HUNDRED FIFTY-THREE OF THIS ARTICLE.
§ 15. Subdivision 1 of section 733 of the real property actions and
proceedings law, as amended by chapter 910 of the laws of 1965, is
amended to read as follows:
1. Except as provided in section [732] SEVEN HUNDRED THIRTY-TWO OF
THIS ARTICLE, relating to a proceeding for non-payment of rent, the
notice of petition and petition shall be served at least [five] TEN and
not more than [twelve] SEVENTEEN days before the time at which the peti-
tion is noticed to be heard.
S. 6458 49 A. 8281
§ 16. Section 743 of the real property actions and proceedings law, as
amended by chapter 644 of the laws of 2003, is amended to read as
follows:
§ 743. Answer. Except as provided in section [732] SEVEN HUNDRED THIR-
TY-TWO OF THIS ARTICLE, relating to a proceeding for non-payment of
rent, at the time when the petition is to be heard the respondent, or
any person in possession or claiming possession of the premises, may
answer, orally or in writing. If the answer is oral the substance there-
of shall be recorded by the clerk or, if a particular court has no
clerk, by the presiding judge or justice of such court, and maintained
in the case record. [If the notice of petition was served at least eight
days before the time at which it was noticed to be heard and it so
demands, the answer shall be made at least three days before the time
the petition is noticed to be heard and, if in writing, it shall be
served within such time; whereupon any reply shall be served at least
one day before such time.] The answer may contain any legal or equitable
defense, or counterclaim. The court may render affirmative judgment for
the amount found due on the counterclaim.
§ 17. Subdivisions 1 and 2 of section 745 of the real property actions
and proceedings law, as amended by chapter 403 of the laws of 1983,
subdivision 2 as amended by chapter 116 of the laws of 1997, subpara-
graph (i) of paragraph (b) as amended by chapter 601 of the laws of
2007, are amended to read as follows:
1. Where triable issues of fact are raised, they shall be tried by the
court unless, at the time the petition is noticed to be heard, a party
demands a trial by jury, in which case trial shall be by jury. At the
time when issue is joined the court, [in its discretion] at the request
of either party [and upon proof to its satisfaction by affidavit or
orally that an adjournment is necessary to enable the applicant to
procure his necessary witnesses, or by consent of all the parties who
appear, may] SHALL adjourn the trial of the issue, [but] not [more] LESS
than [ten] FOURTEEN days, except by consent of all parties. A PARTY'S
SECOND OR SUBSEQUENT REQUEST FOR ADJOURNMENT SHALL BE GRANTED IN THE
COURT'S SOLE DISCRETION.
2. In the city of New York:
(a) In a summary proceeding upon the second of two adjournments GRANT-
ED SOLELY at the request of the respondent, or, upon the [thirtieth]
SIXTIETH day after the first appearance of the parties in court less any
days that the proceeding has been adjourned upon the request of the
petitioner, COUNTING ONLY DAYS ATTRIBUTABLE TO ADJOURNMENT REQUESTS MADE
SOLELY AT THE REQUEST OF THE RESPONDENT AND NOT COUNTING AN INITIAL
ADJOURNMENT REQUESTED BY A RESPONDENT UNREPRESENTED BY COUNSEL FOR THE
PURPOSE OF SECURING COUNSEL, whichever occurs sooner, the court [shall]
MAY, UPON CONSIDERATION OF THE EQUITIES, direct that the respondent,
upon [an application] A MOTION ON NOTICE MADE by the petitioner, deposit
with the court [within five days] sums of rent or use and occupancy
[accrued from the date the petition and notice of petition are served
upon the respondent, and all sums as they become due for rent and use
and occupancy] THAT SHALL ACCRUE SUBSEQUENT TO THE DATE OF THE COURT'S
ORDER, which may be established without the use of expert testimony[,
unless]. THE COURT SHALL NOT ORDER DEPOSIT OR PAYMENT OF USE AND OCCU-
PANCY WHERE the respondent can establish[, at an immediate hearing], to
the satisfaction of the court that respondent has properly interposed
one of the following defenses or established the following grounds:
(i) the petitioner is not a proper party to the proceeding pursuant to
section seven hundred twenty-one of this article; or
S. 6458 50 A. 8281
(ii) (A) actual eviction, or (B) actual partial eviction, or (C)
constructive eviction; and respondent has quit the premises; or
(iii) a defense pursuant to section one hundred forty-three-b of the
social services law; or
(iv) A DEFENSE BASED UPON THE EXISTENCE OF HAZARDOUS OR IMMEDIATELY
HAZARDOUS VIOLATIONS OF THE HOUSING MAINTENANCE CODE IN THE SUBJECT
APARTMENT OR COMMON AREAS; OR
(V) A COLORABLE DEFENSE OF RENT OVERCHARGE; OR
(VI) A DEFENSE THAT THE UNIT IS IN VIOLATION OF THE BUILDING'S CERTIF-
ICATE OF OCCUPANCY OR IS OTHERWISE ILLEGAL UNDER THE MULTIPLE DWELLING
LAW OR THE NEW YORK CITY HOUSING MAINTENANCE CODE; OR
(VII) the court lacks PERSONAL jurisdiction OVER THE RESPONDENT.
[When the rental unit that is the subject of the petition is located
in a building containing twelve or fewer units, the court shall inquire
of the respondent as to whether there is any undisputed amount of the
rent or use and occupancy due to the petitioner. Any such undisputed
amount shall be paid directly to the petitioner, and any disputed amount
shall be deposited to the court by the respondent as provided in this
subdivision.]
Two adjournments shall NOT include an adjournment requested by a
respondent unrepresented by counsel for the purpose of securing counsel
made on a return date of the proceeding. Such rent or use and occupancy
sums shall be deposited with the clerk of the court or paid to such
other person or entity, including the petitioner or an agent designated
by the division of housing and community renewal, as the court shall
direct or shall be expended for such emergency repairs as the court
shall approve.
(b) IN ESTABLISHING THE MONTHLY AMOUNT TO BE DEPOSITED, THE COURT
SHALL NOT EXCEED THE AMOUNT OF THE REGULATED RENT FOR THE UNIT UNDER ANY
STATE, LOCAL OR FEDERAL REGULATORY SCHEME, OR THE AMOUNT OF THE TENANT'S
RENT SHARE UNDER A STATE, LOCAL OR FEDERAL SUBSIDY PROGRAM, OR THE
AMOUNT OF THE TENANT'S SHARE UNDER AN EXPIRED SUBSIDY, UNLESS THE TENANT
HAS ENTERED INTO AN ENFORCEABLE NEW AGREEMENT TO PAY THE FULL LEASE
RENT.
(C) (i) The court shall not require the respondent to deposit the
portion of rent or use and occupancy, if any, which is payable by direct
government housing subsidy, any currently effective senior citizen
increase exemption authorized pursuant to sections four hundred sixty-
seven-b and four hundred sixty-seven-c of the real property tax law,
direct payment of rent or a two-party check issued by a social services
district or the office of temporary and disability assistance, or rental
assistance that is payable pursuant to court orders issued in litigation
commenced in nineteen hundred eighty-seven in a proceeding in which the
amount of shelter allowance is at issue on behalf of recipients of fami-
ly assistance. In the event the respondent or other adult member of the
respondent's household receives public assistance pursuant to title
three or title ten of article five of the social services law, the
respondent shall, when directed by the court to deposit rent and use or
occupancy, only be required to deposit with the court the amount of the
shelter allowance portion of the public assistance grant issued by the
office of temporary and disability assistance or a social services
district. In the event the respondent receives A FIXED INCOME, INCLUDING
BUT NOT LIMITED TO, SOCIAL SECURITY INCOME, supplemental security income
pursuant to title sixteen of the federal social security act and title
six of article five of the social services law, OR PENSION INCOME, the
respondent shall [only] NOT be required to deposit [one-third] MORE THAN
S. 6458 51 A. 8281
THIRTY PERCENT of the monthly [supplemental security income payment]
PAYMENTS.
(ii) Any sum required to be deposited with the court pursuant to this
subdivision shall be offset by payment, if any, made by the respondent
pursuant to section two hundred thirty-five-a of the real property law
or section three hundred two-c of the multiple dwelling law.
[(c) (i) If the respondent shall fail to comply with the court's
directions with respect to direct payment to the petitioner or making a
deposit as directed by the court of the full amount of the rent or use
and occupancy required to be deposited, the court upon an application by
the petitioner shall dismiss without prejudice the defenses and counter-
claims interposed by the respondent and grant judgment for petitioner
unless respondent has interposed the defense of payment and shows that
the amount required to be deposited has previously been paid to the
petitioner.
(ii)] (D) (I) In the event that the respondent [makes a deposit
required by this subdivision but] fails to deposit with the court or
pay, as the case may be, upon the due date, all rent or use and occupan-
cy which may become due [up to the time of the entry of judgment] SUBSE-
QUENT TO THE ISSUANCE OF THE COURT'S DEPOSIT ORDER, the court upon an
application of the petitioner [shall] MAY order an immediate trial of
the issues raised in the respondent's answer. An "immediate trial" shall
mean that no further adjournments of the proceeding [without petitioner
consent] UPON RESPONDENT'S SOLE REQUEST shall be granted, the case shall
be assigned by the administrative judge to a trial ready part and such
trial shall commence AS SOON AS PRACTICABLE and continue day to day
until completed. [There shall be no stay granted of such trial without
an order to respondent to pay rent or use and occupancy due pursuant to
this subdivision and rent or use and occupancy as it becomes due.
(iii)] (II) The court [shall not] MAY extend any time provided for
such deposit under this subdivision [without the consent of the peti-
tioner] FOR GOOD CAUSE SHOWN.
[(iv)] (III) Upon the entry of the final judgment in the proceeding
such deposits shall be credited against any judgment amount awarded and,
without further order of the court, be paid in accordance with the judg-
ment.
[(v) The provisions of this paragraph requiring the deposit of rent or
use and occupancy as it becomes due shall not be waived by the court.
(d)] (E) The court may dismiss any summary proceeding without preju-
dice and with costs to the respondent by reason of excessive adjourn-
ments requested by the petitioner.
[(e) The provisions of this subdivision shall not be construed as to
deprive a respondent of a trial of any defenses or counterclaims in a
separate action if such defenses or counterclaims are dismissed without
prejudice.]
(F) UNDER NO CIRCUMSTANCES SHALL THE RESPONDENT'S FAILURE OR INABILITY
TO PAY USE AND OCCUPANCY AS ORDERED BY THE COURT CONSTITUTE A BASIS TO
DISMISS ANY OF THE RESPONDENT'S DEFENSES OR COUNTERCLAIMS, WITH OR WITH-
OUT PREJUDICE TO THEIR ASSERTION IN ANOTHER FORUM.
§ 18. Section 747-a of the real property actions and proceedings law
is REPEALED.
§ 19. Section 749 of the real property actions and proceedings law, as
added by chapter 312 of the laws of 1962, subdivision 2 as amended by
chapter 205 of the laws of 2018 and subdivision 3 as amended by chapter
192 of the laws of 1975, is amended to read as follows:
S. 6458 52 A. 8281
§ 749. Warrant. 1. Upon rendering a final judgment for petitioner, the
court shall issue a warrant directed to the sheriff of the county or to
any constable or marshal of the city in which the property, or a portion
thereof, is situated, or, if it is not situated in a city, to any const-
able of any town in the county, describing the property, STATING THE
EARLIEST DATE UPON WHICH EXECUTION MAY OCCUR PURSUANT TO THE ORDER OF
THE COURT, and commanding the officer to remove all persons[, and,
except where the case is within section 715, to put the petitioner into
full possession] NAMED IN THE PROCEEDING, PROVIDED UPON A SHOWING OF
GOOD CAUSE, THE COURT MAY ISSUE A STAY OF RE-LETTING OR RENOVATION OF
THE PREMISES FOR A REASONABLE PERIOD OF TIME.
2. (a) The officer to whom the warrant is directed and delivered shall
give at least [seventy-two hours] FOURTEEN DAYS' notice, [excluding any
period which occurs on a Saturday, Sunday or a public holiday,] in writ-
ing and in the manner prescribed in this article for the service of a
notice of petition, to the person or persons to be evicted or dispos-
sessed and shall execute the warrant ON A BUSINESS DAY between the hours
of sunrise and sunset.
(b) Such officer shall check such property for the presence of a
companion animal prior to executing such warrant and coordinate with
such person or persons to be evicted or dispossessed to provide for the
safe and proper care of such companion animal or animals. If such
persons to be evicted or dispossessed cannot be found after reasonable
efforts are made to coordinate with such persons, or if such person is
found and declines to take possession of such animal or animals, such
officer shall promptly coordinate with the duly incorporated humane
society, duly incorporated society for the prevention of cruelty to
animals or pound maintained by or under contract or agreement with the
municipality in which the animal was found for the safe removal of such
companion animal or animals. Such officer shall make reasonable efforts
to provide notice to the person or persons to be evicted regarding the
location of such companion animal or animals. Disposition of such
companion animal or animals shall be in accordance with the provisions
of sections one hundred seventeen and three hundred seventy-four of the
agriculture and markets law, and all other laws, rules and regulations
that govern the humane treatment of animals. "Companion animal," as used
in this paragraph, shall have the same meaning as provided in subdivi-
sion five of section three hundred fifty of the agriculture and markets
law.
3. [The issuing of a warrant for the removal of a tenant cancels the
agreement under which the person removed held the premises, and annuls
the relation of landlord and tenant, but nothing] NOTHING contained
herein shall deprive the court of the power to STAY OR vacate such
warrant for good cause shown prior to the execution thereof, OR TO
RESTORE THE TENANT TO POSSESSION SUBSEQUENT TO EXECUTION OF THE WARRANT.
IN A JUDGMENT FOR NON-PAYMENT OF RENT, THE COURT SHALL VACATE A WARRANT
UPON TENDER OR DEPOSIT WITH THE COURT OF THE FULL RENT DUE AT ANY TIME
PRIOR TO ITS EXECUTION, UNLESS THE PETITIONER ESTABLISHES THAT THE
TENANT WITHHELD THE RENT DUE IN BAD FAITH. Petitioner may recover by
action any sum of money which was payable at the time when the special
proceeding was commenced and the reasonable value of the use and occupa-
tion to the time when the warrant was issued, for any period of time
with respect to which the agreement does not make any provision for
payment of rent.
§ 20. Subdivision 4 of section 751 of the real property actions and
proceedings law is REPEALED.
S. 6458 53 A. 8281
§ 21. Section 753 of the real property actions and proceedings law, as
added by chapter 312 of the laws of 1962, the section heading as
amended, subdivision 4 as added and subdivision 5 as renumbered by chap-
ter 870 of the laws of 1982 and subdivision 1 as amended by chapter 305
of the laws of 1963, is amended to read as follows:
§ 753. Stay [where tenant holds over] in premises occupied for dwell-
ing purposes [in city of New York]. 1. In a proceeding to recover the
possession of premises [in the city of New York] occupied for dwelling
purposes, other than a room or rooms in an hotel, lodging house, or
rooming house, [upon the ground that the occupant is holding over and
continuing in possession of the premises after the expiration of his
term and without the permission of the landlord, or, in a case where a
new lessee is entitled to possession, without the permission of the new
lessee,] the court, on application of the occupant, may stay the issu-
ance of a warrant and also stay any execution to collect the costs of
the proceeding for a period of not more than [six months] ONE YEAR, if
it appears that the premises are used for dwelling purposes; that the
application is made in good faith; that the applicant cannot within the
neighborhood secure suitable premises similar to those occupied by [him]
THE APPLICANT and that [he] THE APPLICANT made due and reasonable
efforts to secure such other premises, or that by reason of other facts
it would occasion extreme hardship to [him or his] THE APPLICANT OR THE
APPLICANT'S family if the stay were not granted. IN DETERMINING WHETHER
REFUSAL TO GRANT A STAY WOULD OCCASION EXTREME HARDSHIP, THE COURT SHALL
CONSIDER SERIOUS ILL HEALTH, SIGNIFICANT EXACERBATION OF AN ONGOING
CONDITION, A CHILD'S ENROLLMENT IN A LOCAL SCHOOL, AND ANY OTHER EXTEN-
UATING LIFE CIRCUMSTANCES AFFECTING THE ABILITY OF THE APPLICANT OR THE
APPLICANT'S FAMILY TO RELOCATE AND MAINTAIN QUALITY OF LIFE. THE COURT
SHALL CONSIDER ANY SUBSTANTIAL HARDSHIP THE STAY MAY IMPOSE ON THE LAND-
LORD IN DETERMINING WHETHER TO GRANT THE STAY OR IN SETTING THE LENGTH
OR OTHER TERMS OF THE STAY. IN AN APPLICATION BROUGHT OUTSIDE A CITY OF
ONE MILLION OR MORE, THE TERM "NEIGHBORHOOD" SHALL BE CONSTRUED TO MEAN
(I) THE SAME TOWN, VILLAGE OR CITY WHERE THE APPLICANT NOW RESIDES, OR
(II) IF THE APPLICANT HAS SCHOOL AGED CHILDREN RESIDING WITH HIM OR HER,
"NEIGHBORHOOD" SHALL MEAN THE SCHOOL DISTRICT WHERE SUCH CHILDREN ATTEND
OR ARE ELIGIBLE TO ATTEND.
2. Such stay shall be granted and continue effective only upon the
condition that the person against whom the judgment is entered shall
make a deposit in court of the entire amount, or such installments ther-
eof from time to time as the court may direct, for the occupation of the
premises for the period of the stay, at the rate for which [he] THE
APPLICANT was liable as rent for the month immediately prior to the
expiration of [his] THE APPLICANT'S term or [tenency] TENANCY, plus such
additional amount, if any, as the court may determine to be the differ-
ence between such rent and the reasonable rent or value of the use and
occupation of the premises; such deposit [shall] MAY also include all
rent unpaid by the occupant prior to the period of the stay. The amount
of such deposit shall be determined by the court upon the application
for the stay and such determination shall be final and conclusive in
respect to the amount of such deposit, and the amount thereof shall be
paid into court, in such manner and in such installments, if any, as the
court may direct. A separate account shall be kept of the amount to the
credit of each proceeding, and all such payments shall be deposited in a
bank or trust company and shall be subject to the check of the clerk of
the court, if there be one, or otherwise of the court. The clerk of the
court, if there be one, and otherwise the court shall pay to the land-
S. 6458 54 A. 8281
lord or [his] THE LANDLORD'S duly authorized agent, the amount of such
deposit in accordance with the terms of the stay or the further order of
the court.
3. The provisions of this section shall not apply to a proceeding
[where the petitioner shows to the satisfaction of the court that he
desires in good faith to recover the premises for the purpose of demol-
ishing same with the intention of constructing a new building, plans for
which new building shall have been duly filed and approved by the proper
authority; nor shall it apply to a proceeding] to recover possession
upon the ground that an occupant is holding over and is objectionable if
the landlord shall establish BY COMPETENT EVIDENCE to the satisfaction
of the court that such occupant is objectionable.
4. In the event that such proceeding is based upon a claim that the
tenant or lessee has breached a provision of the lease, the court shall
grant a [ten] THIRTY day stay of issuance of the warrant, during which
time the respondent may correct such breach.
5. Any provision of a lease or other agreement whereby a lessee or
tenant waives any provision of this section shall be deemed against
public policy and void.
§ 22. Section 756 of the real property actions and proceedings law, as
added by chapter 913 of the laws of 1965, is amended to read as follows:
§ 756. Stay of summary proceedings or actions for rent under certain
conditions. In the event that utilities are discontinued in any part of
a [multiple] dwelling because of the failure of the landlord or other
person having control of said [multiple] dwelling to pay for utilities
for which he may have contracted, any proceeding to dispossess a tenant
from said building or an action against any tenant of said building for
rent shall be stayed until such time as the landlord or person having
control of said [multiple] dwelling pays the amount owing for said util-
ities and until such time as the utilities are restored to working
order.
§ 23. The real property actions and proceedings law is amended by
adding a new section 757 to read as follows:
§ 757. EVICTION AS THE RESULT OF FORECLOSURE. IN THE EVENT THAT A
LESSEE IS REMOVED FROM REAL PROPERTY PURSUANT TO THIS ARTICLE, AND THE
LEASED REAL PROPERTY WAS THE SUBJECT OF A FORECLOSURE PROCEEDING PURSU-
ANT TO THIS CHAPTER OR THE SUBJECT OF A TAX FORECLOSURE PROCEEDING, THE
COURT RECORDS RELATING TO ANY SUCH LESSEE SHALL BE SEALED AND BE DEEMED
CONFIDENTIAL. NO DISCLOSURE OR USE OF SUCH INFORMATION RELATING TO ANY
SUCH LESSEE SHALL BE AUTHORIZED, AND THE USE OF SUCH INFORMATION SHALL
BE PROHIBITED.
§ 24. The real property actions and proceedings law is amended by
adding a new section 768 to read as follows:
§ 768. UNLAWFUL EVICTION. 1. (A) IT SHALL BE UNLAWFUL FOR ANY PERSON
TO EVICT OR ATTEMPT TO EVICT AN OCCUPANT OF A DWELLING UNIT WHO HAS
LAWFULLY OCCUPIED THE DWELLING UNIT FOR THIRTY CONSECUTIVE DAYS OR LONG-
ER OR WHO HAS ENTERED INTO A LEASE WITH RESPECT TO SUCH DWELLING EXCEPT
TO THE EXTENT PERMITTED BY LAW PURSUANT TO A WARRANT OF EVICTION OR
OTHER ORDER OF A COURT OF COMPETENT JURISDICTION OR A GOVERNMENTAL
VACATE ORDER BY:
(I) USING OR THREATENING THE USE OF FORCE TO INDUCE THE OCCUPANT TO
VACATE THE DWELLING UNIT; OR
(II) ENGAGING IN A COURSE OF CONDUCT WHICH INTERFERES WITH OR IS
INTENDED TO INTERFERE WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR
QUIET OF SUCH OCCUPANT IN THE USE OR OCCUPANCY OF THE DWELLING UNIT, TO
S. 6458 55 A. 8281
INDUCE THE OCCUPANT TO VACATE THE DWELLING UNIT INCLUDING, BUT NOT
LIMITED TO, THE INTERRUPTION OR DISCONTINUANCE OF ESSENTIAL SERVICES; OR
(III) ENGAGING OR THREATENING TO ENGAGE IN ANY OTHER CONDUCT WHICH
PREVENTS OR IS INTENDED TO PREVENT SUCH OCCUPANT FROM THE LAWFUL OCCU-
PANCY OF SUCH DWELLING UNIT OR TO INDUCE THE OCCUPANT TO VACATE THE
DWELLING UNIT INCLUDING, BUT NOT LIMITED TO, REMOVING THE OCCUPANT'S
POSSESSIONS FROM THE DWELLING UNIT, REMOVING THE DOOR AT THE ENTRANCE TO
THE DWELLING UNIT; REMOVING, PLUGGING OR OTHERWISE RENDERING THE LOCK ON
SUCH ENTRANCE DOOR INOPERABLE, OR CHANGING THE LOCK ON SUCH ENTRANCE
DOOR WITHOUT SUPPLYING THE OCCUPANT WITH A KEY.
(B) IT SHALL BE UNLAWFUL FOR AN OWNER OF A DWELLING UNIT TO FAIL TO
TAKE ALL REASONABLE AND NECESSARY ACTION TO RESTORE TO OCCUPANCY AN
OCCUPANT OF A DWELLING UNIT WHO EITHER VACATES, HAS BEEN REMOVED FROM OR
IS OTHERWISE PREVENTED FROM OCCUPYING A DWELLING UNIT AS THE RESULT OF
ANY OF THE ACTS OR OMISSIONS PRESCRIBED IN PARAGRAPH (A) OF THIS SUBDI-
VISION AND TO PROVIDE TO SUCH OCCUPANT A DWELLING UNIT WITHIN SUCH
DWELLING SUITABLE FOR OCCUPANCY, AFTER BEING REQUESTED TO DO SO BY SUCH
OCCUPANT OR THE REPRESENTATIVE OF SUCH OCCUPANT, IF SUCH OWNER EITHER
COMMITTED SUCH UNLAWFUL ACTS OR OMISSIONS OR KNEW OR HAD REASON TO KNOW
OF SUCH UNLAWFUL ACTS OR OMISSIONS, OR IF SUCH ACTS OR OMISSIONS
OCCURRED WITHIN SEVEN DAYS PRIOR TO SUCH REQUEST.
2. CRIMINAL AND CIVIL PENALTIES. (A) ANY PERSON WHO INTENTIONALLY
VIOLATES OR ASSISTS IN THE VIOLATION OF ANY OF THE PROVISIONS OF THIS
SECTION SHALL BE GUILTY OF A CLASS A MISDEMEANOR. EACH SUCH VIOLATION
SHALL BE A SEPARATE AND DISTINCT OFFENSE.
(B) SUCH PERSON SHALL ALSO BE SUBJECT TO A CIVIL PENALTY OF NOT LESS
THAN ONE THOUSAND NOR MORE THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION.
EACH SUCH VIOLATION SHALL BE A SEPARATE AND DISTINCT OFFENSE. IN THE
CASE OF A FAILURE TO TAKE ALL REASONABLE AND NECESSARY ACTION TO RESTORE
AN OCCUPANT PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF THIS
SECTION, SUCH PERSON SHALL BE SUBJECT TO AN ADDITIONAL CIVIL PENALTY OF
NOT MORE THAN ONE HUNDRED DOLLARS PER DAY FROM THE DATE ON WHICH RESTO-
RATION TO OCCUPANCY IS REQUESTED UNTIL THE DATE ON WHICH RESTORATION
OCCURS, PROVIDED, HOWEVER, THAT SUCH PERIOD SHALL NOT EXCEED SIX MONTHS.
§ 25. The section heading and subdivision 1 of section 7-108 of the
general obligations law, as added by chapter 917 of the laws of 1984,
are amended and a new subdivision 1-a is added to read as follows:
[Liability of a grantee or assignee for deposits] DEPOSITS made by
tenants [upon conveyance] of non-rent stabilized dwelling units. 1. This
section shall apply to all dwelling units [with written leases] in resi-
dential premises [containing six or more dwelling units and to all
dwelling units subject to the city rent and rehabilitation law or the
emergency housing rent control law], unless such dwelling unit is
specifically referred to in section 7-107 of this [chapter] TITLE.
1-A. EXCEPT IN DWELLING UNITS SUBJECT TO THE CITY RENT AND REHABILI-
TATION LAW OR THE EMERGENCY HOUSING RENT CONTROL LAW, CONTINUING CARE
RETIREMENT COMMUNITIES LICENSED PURSUANT TO ARTICLE FORTY-SIX OR FORTY-
SIX-A OF THE PUBLIC HEALTH LAW, ASSISTED LIVING PROVIDERS LICENSED
PURSUANT TO ARTICLE FORTY-SIX-B OF THE PUBLIC HEALTH LAW, ADULT CARE
FACILITIES LICENSED PURSUANT TO ARTICLE SEVEN OF THE SOCIAL SERVICES
LAW, SENIOR RESIDENTIAL COMMUNITIES THAT HAVE SUBMITTED AN OFFERING PLAN
TO THE ATTORNEY GENERAL, OR NOT-FOR-PROFIT INDEPENDENT RETIREMENT COMMU-
NITIES THAT OFFER PERSONAL EMERGENCY RESPONSE, HOUSEKEEPING, TRANSPORTA-
TION AND MEALS TO THEIR RESIDENTS:
(A) NO DEPOSIT OR ADVANCE SHALL EXCEED THE AMOUNT OF ONE MONTH'S RENT
UNDER SUCH CONTRACT.
S. 6458 56 A. 8281
(B) THE ENTIRE AMOUNT OF THE DEPOSIT OR ADVANCE SHALL BE REFUNDABLE TO
THE TENANT UPON THE TENANT'S VACATING OF THE PREMISES EXCEPT FOR AN
AMOUNT LAWFULLY RETAINED FOR THE REASONABLE AND ITEMIZED COSTS DUE TO
NON-PAYMENT OF RENT, DAMAGE CAUSED BY THE TENANT BEYOND NORMAL WEAR AND
TEAR, NON-PAYMENT OF UTILITY CHARGES PAYABLE DIRECTLY TO THE LANDLORD
UNDER THE TERMS OF THE LEASE OR TENANCY, AND MOVING AND STORAGE OF THE
TENANT'S BELONGINGS. THE LANDLORD MAY NOT RETAIN ANY AMOUNT OF THE
DEPOSIT FOR COSTS RELATING TO ORDINARY WEAR AND TEAR OF OCCUPANCY OR
DAMAGE CAUSED BY A PRIOR TENANT.
(C) AFTER INITIAL LEASE SIGNING BUT BEFORE THE TENANT BEGINS OCCUPAN-
CY, THE LANDLORD SHALL OFFER THE TENANT THE OPPORTUNITY TO INSPECT THE
PREMISES WITH THE LANDLORD OR THE LANDLORD'S AGENT TO DETERMINE THE
CONDITION OF THE PROPERTY. IF THE TENANT REQUESTS SUCH INSPECTION, THE
PARTIES SHALL EXECUTE A WRITTEN AGREEMENT BEFORE THE TENANT BEGINS OCCU-
PANCY OF THE UNIT ATTESTING TO THE CONDITION OF THE PROPERTY AND SPECIF-
ICALLY NOTING ANY EXISTING DEFECTS OR DAMAGES. UPON THE TENANT'S VACAT-
ING OF THE PREMISES, THE LANDLORD MAY NOT RETAIN ANY AMOUNT OF THE
DEPOSIT OR ADVANCE DUE TO ANY CONDITION, DEFECT, OR DAMAGE NOTED IN SUCH
AGREEMENT. THE AGREEMENT SHALL BE ADMISSIBLE AS EVIDENCE OF THE CONDI-
TION OF THE PREMISES AT THE BEGINNING OF OCCUPANCY ONLY IN PROCEEDINGS
RELATED TO THE RETURN OR AMOUNT OF THE SECURITY DEPOSIT.
(D) WITHIN A REASONABLE TIME AFTER NOTIFICATION OF EITHER PARTY'S
INTENTION TO TERMINATE THE TENANCY, UNLESS THE TENANT TERMINATES THE
TENANCY WITH LESS THAN TWO WEEKS' NOTICE, THE LANDLORD SHALL NOTIFY THE
TENANT IN WRITING OF THE TENANT'S RIGHT TO REQUEST AN INSPECTION BEFORE
VACATING THE PREMISES AND OF THE TENANT'S RIGHT TO BE PRESENT AT THE
INSPECTION. IF THE TENANT REQUESTS SUCH AN INSPECTION, THE INSPECTION
SHALL BE MADE NO EARLIER THAN TWO WEEKS AND NO LATER THAN ONE WEEK
BEFORE THE END OF THE TENANCY. THE LANDLORD SHALL PROVIDE AT LEAST
FORTY-EIGHT HOURS WRITTEN NOTICE OF THE DATE AND TIME OF THE INSPECTION.
AFTER THE INSPECTION, THE LANDLORD SHALL PROVIDE THE TENANT WITH AN
ITEMIZED STATEMENT SPECIFYING REPAIRS OR CLEANING THAT ARE PROPOSED TO
BE THE BASIS OF ANY DEDUCTIONS FROM THE TENANT'S DEPOSIT. THE TENANT
SHALL HAVE THE OPPORTUNITY TO CURE ANY SUCH CONDITION BEFORE THE END OF
THE TENANCY. ANY STATEMENT PRODUCED PURSUANT TO THIS PARAGRAPH SHALL
ONLY BE ADMISSIBLE IN PROCEEDINGS RELATED TO THE RETURN OR AMOUNT OF THE
SECURITY DEPOSIT.
(E) WITHIN FOURTEEN DAYS AFTER THE TENANT HAS VACATED THE PREMISES,
THE LANDLORD SHALL PROVIDE THE TENANT WITH AN ITEMIZED STATEMENT INDI-
CATING THE BASIS FOR THE AMOUNT OF THE DEPOSIT RETAINED, IF ANY, AND
SHALL RETURN ANY REMAINING PORTION OF THE DEPOSIT TO THE TENANT. IF A
LANDLORD FAILS TO PROVIDE THE TENANT WITH THE STATEMENT AND DEPOSIT
WITHIN FOURTEEN DAYS, THE LANDLORD SHALL FORFEIT ANY RIGHT TO RETAIN ANY
PORTION OF THE DEPOSIT.
(F) IN ANY ACTION OR PROCEEDING DISPUTING THE AMOUNT OF ANY AMOUNT OF
THE DEPOSIT RETAINED, THE LANDLORD SHALL BEAR THE BURDEN OF PROOF AS TO
THE REASONABLENESS OF THE AMOUNT RETAINED.
(G) ANY PERSON WHO VIOLATES THE PROVISIONS OF THIS SUBDIVISION SHALL
BE LIABLE FOR ACTUAL DAMAGES, PROVIDED A PERSON FOUND TO HAVE WILLFULLY
VIOLATED THIS SUBDIVISION SHALL BE LIABLE FOR PUNITIVE DAMAGES OF UP TO
TWICE THE AMOUNT OF THE DEPOSIT OR ADVANCE.
§ 26. Subdivision 1 of section 212 of the judiciary law is amended by
adding a new paragraph (x) to read as follows:
(X) NOT PERMIT THE UNIFIED COURT SYSTEM TO SELL ANY DATA REGARDING
JUDICIAL PROCEEDINGS RELATED TO RESIDENTIAL TENANCY, RENT OR EVICTION TO
ANY THIRD PARTY. SUCH PROHIBITION INCLUDES DATA COLLECTED, STORED OR
S. 6458 57 A. 8281
UTILIZED BY ANY THIRD-PARTY VENDORS WHO HAVE CONTRACTS WITH THE UNIFIED
COURT SYSTEM.
§ 27. 1. (a) There is hereby created a temporary commission to be
known as the "New York state temporary commission on housing security
and tenant protection," which shall be charged with studying the impacts
of the statewide housing security and tenant protection act of 2019 on
tenants, landlords, and the court system, and recommending the implemen-
tation of legislation, regulations and rules to further improve tenant
protections in New York.
(b) The commission shall consist of ten members: (i) the commissioner
of housing and community renewal shall serve ex officio; (ii) three
members shall be appointed by the governor, one of whom shall be an
attorney with significant housing court experience employed by a not-
for-profit legal services firm, one of whom shall be a landlord, and one
of whom shall be a retired judge or justice of the unified court system
with significant experience in housing court; (iii) two members shall be
appointed by the temporary president of the senate; (iv) one member
shall be appointed by the minority leader of the senate; (v) two members
shall be appointed by the speaker of the assembly; and (vi) one member
shall be appointed by the minority leader of the assembly. The commis-
sioner of housing and community renewal shall serve as the chair of the
commission. Vacancies in the commission shall be filled in the same
manner as the members whose vacancy is being filled was appointed.
(c) The members of the commission shall receive no compensation for
their services as members, but shall be allowed their actual and neces-
sary expenses incurred in the performance of their duties. No member of
the commission shall be disqualified from holding any other public
office or employment, nor shall he or she forfeit any such office or
employment by reason of his or her appointment pursuant to this section,
notwithstanding the provisions of any general, special or local law,
regulation, ordinance or city charter.
2. To the maximum extent feasible, the commission shall be entitled to
request and receive and shall utilize and be provided with such facili-
ties, resources and data of any department, division, board, bureau,
committee, agency or public authority of the state or any political
subdivision thereof as it may reasonably request to properly carry out
its powers and duties pursuant to this act.
3. On or before December 31, 2022, the commission shall transmit to
the governor, the legislature, and the chief administrator of the courts
a report containing its findings and recommendations. The commissioner
of housing and community renewal shall post the report on its website.
Upon the making of its report, the commission shall be deemed dissolved.
§ 28. Severability. If any provision of this act, or any application
of any provision of this act, is held to be invalid, that shall not
affect the validity or effectiveness of any other provision of this act,
or of any other application of any provision of this act, which can be
given effect without that provision or application; and to that end, the
provisions and applications of this act are severable.
§ 29. This act shall take effect immediately and shall apply to
actions and proceedings commenced on or after such effective date;
provided, however, that sections three, six and seven shall take effect
on the one hundred twentieth day after this act shall have become a law;
provided, further, that section twenty-five of this act shall take
effect on the thirtieth day after this act shall have become a law and
shall apply to any lease or rental agreement or renewal of a lease or
rental agreement entered into on or after such date; and, provided,
S. 6458 58 A. 8281
further, section five of this act shall take effect on the thirtieth day
after this act shall have become a law.
PART N
Section 1. Section 352-eeee of the general business law, as added by
chapter 555 of the laws of 1982, subdivision 3 as amended by chapter 685
of the laws of 1988, is amended to read as follows:
§ 352-eeee. Conversions to cooperative or condominium ownership in the
city of New York. 1. As used in this section, the following words and
terms shall have the following meanings:
(a) "Plan". Every offering statement or prospectus submitted to the
department of law pursuant to section three hundred fifty-two-e of this
article for the conversion of a building or group of buildings or devel-
opment from residential rental status to cooperative or condominium
ownership or other form of cooperative interest in realty, other than an
offering statement or prospectus for such conversion pursuant to article
two, eight or eleven of the private housing finance law.
(b) "Non-eviction plan". A plan which may not be declared effective
until written purchase agreements have been executed and delivered for
at least [fifteen] FIFTY-ONE percent of all dwelling units in the build-
ing or group of buildings or development by bona fide tenants [in occu-
pancy or bona fide purchasers who represent that they intend that they
or one or more members of their immediate family intend to occupy the
unit when it becomes vacant. As to tenants] who were in occupancy on the
date a letter was issued by the attorney general accepting the plan for
filing[, the]. THE purchase agreement shall be executed and delivered
pursuant to an offering made in good faith without fraud and discrimina-
tory repurchase agreements or other discriminatory inducements.
(c) "Eviction plan". A plan which, SUBMITTED PRIOR TO THE EFFECTIVE
DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
THIS SECTION, pursuant to the provisions of this section, can result in
the eviction of a non-purchasing tenant by reason of the tenant failing
to purchase pursuant thereto, and which may not be declared effective
until at least fifty-one percent of the bona fide tenants in occupancy
of all dwelling units in the building or group of buildings or develop-
ment on the date the offering statement or prospectus was accepted for
filing by the attorney general (excluding, for the purposes of determin-
ing the number of bona fide tenants in occupancy on such date, eligible
senior citizens and eligible disabled persons) shall have executed and
delivered written agreements to purchase under the plan pursuant to an
offering made in good faith without fraud and with no discriminatory
repurchase agreements or other discriminatory inducements.
(d) "Purchaser under the plan". A person who owns the shares allocated
to a dwelling unit or who owns such dwelling unit itself.
(e) "Non-purchasing tenant". A person who has not purchased under the
plan and who is a tenant entitled to possession at the time the plan is
declared effective or a person to whom a dwelling unit is rented subse-
quent to the effective date. A person who sublets a dwelling unit from
a purchaser under the plan shall not be deemed a non-purchasing tenant.
(f) "Eligible senior citizens". Non-purchasing tenants who are sixty-
two years of age or older on THE DATE THE PLAN IS SUBMITTED TO THE
DEPARTMENT OF LAW OR ON the date the attorney general has accepted the
plan for filing, and the spouses of any such tenants on such date, and
who have elected, within sixty days of THE DATE THE PLAN IS SUBMITTED TO
THE DEPARTMENT OF LAW OR ON the date the attorney general has accepted
S. 6458 59 A. 8281
the plan for filing, on forms promulgated by the attorney general and
presented to such tenants by the offeror, to become non-purchasing
tenants under the provisions of this section; provided that such
election shall not preclude any such tenant from subsequently purchasing
the dwelling unit on the terms then offered to tenants in occupancy.
(g) "Eligible disabled persons". Non-purchasing tenants who have an
impairment which results from anatomical, physiological or psychological
conditions, other than addiction to alcohol, gambling, or any controlled
substance, which are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in any substantial gainful
employment on THE DATE THE PLAN IS SUBMITTED TO THE DEPARTMENT OF LAW OR
ON the date the attorney general has accepted the plan for filing, and
the spouses of any such tenants on such date, and who have elected,
within sixty days of THE DATE THE PLAN IS SUBMITTED TO THE DEPARTMENT OF
LAW OR ON the date the attorney general has accepted the plan for
filing, on forms promulgated by the attorney general and presented to
such tenants by the offeror, to become non-purchasing tenants under the
provisions of this section; provided, however, that if the disability
first occurs after acceptance of the plan for filing, then such election
may be made within sixty days following the onset of such disability
unless during the period subsequent to sixty days following the accept-
ance of the plan for filing but prior to such election, the offeror
accepts a written agreement to purchase the apartment from a bona fide
purchaser; and provided further that such election shall not preclude
any such tenant from subsequently purchasing the dwelling unit or the
shares allocated thereto on the terms then offered to tenants in occu-
pancy.
2. The attorney general shall refuse to issue a letter stating that
the offering statement or prospectus required in subdivision one of
section three hundred fifty-two-e of this [chapter] ARTICLE has been
filed whenever it appears that the offering statement or prospectus
offers for sale residential cooperative apartments or condominium units
pursuant to a plan unless:
(a) The plan provides that it will be deemed abandoned, void and of no
effect if it does not become effective within fifteen months from the
date of issue of the letter of the attorney general stating that the
offering statement or prospectus has been accepted for filing and, in
the event of such abandonment, no new plan for the conversion of such
building or group of buildings or development shall be submitted to the
attorney general for at least twelve months after such abandonment.
(b) The plan provides either that it is an eviction plan or that it is
a non-eviction plan.
(c) The plan provides, if it is a non-eviction plan, as follows:
(i) The plan may not be declared effective until written purchase
agreements have been executed and delivered for at least [fifteen]
FIFTY-ONE percent of all dwelling units in the building or group of
buildings or development subscribed for by bona fide tenants in occupan-
cy [or bona fide purchasers who represent that they intend that they or
one or more members of their immediate family occupy the dwelling unit
when it becomes vacant. As to tenants who were in occupancy] on the date
a letter was issued by the attorney general accepting the plan for
filing[, the] FOR WHICH purchase agreement shall be executed and deliv-
ered pursuant to an offering made without discriminatory repurchase
agreements or other discriminatory inducements.
S. 6458 60 A. 8281
(ii) No eviction proceedings will be commenced at any time against
non-purchasing tenants for failure to purchase or any other reason
applicable to expiration of tenancy; provided that such proceedings may
be commenced for non-payment of rent, illegal use or occupancy of the
premises, refusal of reasonable access to the owner or a similar breach
by the non-purchasing tenant of his obligations to the owner of the
dwelling unit or the shares allocated thereto; and provided further that
an owner of a unit or of the shares allocated thereto may not commence
an action to recover possession of a dwelling unit from a non-purchasing
tenant on the grounds that he seeks the dwelling unit for the use and
occupancy of himself or his family.
(iii) NO EVICTION PROCEEDINGS WILL BE COMMENCED, EXCEPT AS HEREINAFTER
PROVIDED, AT ANY TIME AGAINST EITHER ELIGIBLE SENIOR CITIZENS OR ELIGI-
BLE DISABLED PERSONS. THE RENTALS OF ELIGIBLE SENIOR CITIZENS AND ELIGI-
BLE DISABLED PERSONS WHO RESIDE IN DWELLING UNITS NOT SUBJECT TO GOVERN-
MENT REGULATION AS TO RENTALS AND CONTINUED OCCUPANCY AND ELIGIBLE
SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS WHO RESIDE IN DWELLING
UNITS WITH RESPECT TO WHICH GOVERNMENT REGULATION AS TO RENTALS AND
CONTINUED OCCUPANCY IS ELIMINATED OR BECOMES INAPPLICABLE AFTER THE PLAN
HAS BEEN ACCEPTED FOR FILING SHALL NOT BE SUBJECT TO UNCONSCIONABLE
INCREASES BEYOND ORDINARY RENTALS FOR COMPARABLE APARTMENTS DURING THE
PERIOD OF THEIR OCCUPANCY CONSIDERING, IN DETERMINING COMPARABILITY,
SUCH FACTORS AS BUILDING SERVICES, LEVEL OF MAINTENANCE AND OPERATING
EXPENSES; PROVIDED THAT SUCH PROCEEDINGS MAY BE COMMENCED AGAINST SUCH
TENANTS FOR NON-PAYMENT OF RENT, ILLEGAL USE OR OCCUPANCY OF THE PREM-
ISES, REFUSAL OF REASONABLE ACCESS TO THE OWNER OR A SIMILAR BREACH BY
THE TENANT OF HIS OBLIGATIONS TO THE OWNER OF THE DWELLING UNIT OR THE
SHARES ALLOCATED THERETO.
(IV) ELIGIBLE SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS WHO RESIDE
IN DWELLING UNITS SUBJECT TO GOVERNMENT REGULATION AS TO RENTALS AND
CONTINUED OCCUPANCY SHALL CONTINUE TO BE SUBJECT THERETO.
(V) THE RIGHTS GRANTED UNDER THE PLAN TO ELIGIBLE SENIOR CITIZENS AND
ELIGIBLE DISABLED PERSONS MAY NOT BE ABROGATED OR REDUCED NOTWITHSTAND-
ING ANY EXPIRATION OF, OR AMENDMENT TO, THIS SECTION.
(VI) ANY OFFEROR WHO DISPUTES THE ELECTION BY A PERSON TO BE AN ELIGI-
BLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON MUST APPLY TO THE
ATTORNEY GENERAL WITHIN THIRTY DAYS OF THE RECEIPT OF THE ELECTION FORMS
FOR A DETERMINATION BY THE ATTORNEY GENERAL OF SUCH PERSON'S ELIGIBIL-
ITY. THE ATTORNEY GENERAL SHALL, WITHIN THIRTY DAYS THEREAFTER, ISSUE
HIS DETERMINATION OF ELIGIBILITY. THE FOREGOING SHALL, IN THE ABSENCE OF
FRAUD, BE THE SOLE METHOD FOR DETERMINING A DISPUTE AS TO WHETHER A
PERSON IS AN ELIGIBLE SENIOR CITIZEN OR AN ELIGIBLE DISABLED PERSON. THE
DETERMINATION OF THE ATTORNEY GENERAL SHALL BE REVIEWABLE ONLY THROUGH A
PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND
RULES, WHICH PROCEEDING MUST BE COMMENCED WITHIN THIRTY DAYS AFTER SUCH
DETERMINATION BY THE ATTORNEY GENERAL BECOMES FINAL.
(VII) Non-purchasing tenants who reside in dwelling units subject to
government regulation as to rentals and continued occupancy prior to the
conversion of the building or group of buildings or development to coop-
erative or [condominimum] CONDOMINIUM ownership shall continue to be
subject thereto.
[(iv)] (VIII) The rentals of non-purchasing tenants who reside in
dwelling units not subject to government regulation as to rentals and
continued occupancy and non-purchasing tenants who reside in dwelling
units with respect to which government regulation as to rentals and
continued occupancy is eliminated or becomes inapplicable after the plan
S. 6458 61 A. 8281
has been accepted for filing by the attorney general shall not be
subject to unconscionable increases beyond ordinary rentals for compara-
ble apartments during the period of their occupancy. In determining
comparability, consideration shall be given to such factors as building
services, level of maintenance and operating expenses.
[(v)] (IX) The plan may not be amended at any time to provide that it
shall be an eviction plan.
[(vi)] (X) The rights granted under the plan to purchasers under the
plan and to non-purchasing tenants may not be abrogated or reduced
notwithstanding any expiration of, or amendment to, this section.
[(vii)] (XI) After the issuance of the letter from the attorney gener-
al stating that the offering statement or prospectus required in subdi-
vision one of section three hundred fifty-two-e of this article has been
[filed] ACCEPTED FOR FILING, the offeror shall, on the thirtieth, sixti-
eth, eighty-eighth and ninetieth day after such date and at least once
every thirty days until the plan is declared effective or [is] aban-
doned, as the case may be, and on the second day before the expiration
of any exclusive purchase period provided in a substantial amendment to
the plan, (1) file with the attorney general a written statement, under
oath, setting forth the percentage of [the] BONA FIDE TENANTS IN OCCU-
PANCY OF ALL dwelling units in the building or group of buildings or
development [subscribed for by bona fide tenants in occupancy or bona
fide purchasers who represent that they intend that they or one or more
members of their immediate family occupy the dwelling unit when it
becomes vacant as of the date of such statement and] ON THE DATE THE
OFFERING STATEMENT OR PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY
GENERAL WHO HAVE EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE
UNDER THE PLAN AS OF THE DATE OF SUCH STATEMENT, AND (2) before noon on
the day such statement is filed post a copy of such statement in a prom-
inent place accessible to all tenants in each building covered by the
plan.
(XII) THE TENANTS IN OCCUPANCY ON THE DATE THE ATTORNEY GENERAL
ACCEPTS THE PLAN FOR FILING SHALL HAVE THE EXCLUSIVE RIGHT TO PURCHASE
THEIR DWELLING UNITS OR THE SHARES ALLOCATED THERETO FOR NINETY DAYS
AFTER THE PLAN IS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL, DURING
WHICH TIME A TENANT'S DWELLING UNIT SHALL NOT BE SHOWN TO A THIRD PARTY
UNLESS HE OR SHE HAS, IN WRITING, WAIVED HIS OR HER RIGHT TO PURCHASE;
SUBSEQUENT TO THE EXPIRATION OF SUCH NINETY DAY PERIOD, A TENANT IN
OCCUPANCY OF A DWELLING UNIT WHO HAS NOT PURCHASED SHALL BE GIVEN THE
EXCLUSIVE RIGHT FOR AN ADDITIONAL PERIOD OF SIX MONTHS FROM SAID EXPIRA-
TION DATE TO PURCHASE SAID DWELLING UNIT OR THE SHARES ALLOCATED THERETO
ON THE SAME TERMS AND CONDITIONS AS ARE CONTAINED IN AN EXECUTED
CONTRACT TO PURCHASE SAID DWELLING UNIT OR SHARES ENTERED INTO BY A BONA
FIDE PURCHASER, SUCH EXCLUSIVE RIGHT TO BE EXERCISABLE WITHIN FIFTEEN
DAYS FROM THE DATE OF MAILING BY REGISTERED MAIL OF NOTICE OF THE
EXECUTION OF A CONTRACT OF SALE TOGETHER WITH A COPY OF SAID EXECUTED
CONTRACT TO SAID TENANT.
(d) The plan provides, if it is an eviction plan, as follows:
(i) The plan may not be declared effective unless at least fifty-one
percent of the bona fide tenants in occupancy of all dwelling units in
the building or group of buildings or development on the date the offer-
ing statement or prospectus was accepted for filing by the attorney
general (excluding, for the purposes of determining the number of bona
fide tenants in occupancy on such date, eligible senior citizens and
eligible disabled persons) shall have executed and delivered written
agreements to purchase under the plan pursuant to an offering made in
S. 6458 62 A. 8281
good faith without fraud and with no discriminatory repurchase agree-
ments or other discriminatory inducements.
(ii) No eviction proceedings will be commenced against a non-purchas-
ing tenant for failure to purchase or any other reason applicable to
expiration of tenancy until the later to occur of (1) the date which is
the expiration date provided in such non-purchasing tenant's lease or
rental agreement, and (2) the date which is three years after the date
on which the plan is declared effective. Non-purchasing tenants who
reside in dwelling units subject to government regulation as to rentals
and continued occupancy prior to conversion shall continue to be subject
thereto during the period of occupancy provided in this paragraph.
Thereafter, if a tenant has not purchased, he may be removed by the
owner of the dwelling unit or the shares allocated to such dwelling
unit.
(iii) No eviction proceedings will be commenced, except as hereinafter
provided, at any time against either eligible senior citizens or eligi-
ble disabled persons. The rentals of eligible senior citizens and eligi-
ble disabled persons who reside in dwelling units not subject to govern-
ment regulation as to rentals and continued occupancy and eligible
senior citizens and eligible disabled persons who reside in dwelling
units with respect to which government regulation as to rentals and
continued occupancy is eliminated or becomes inapplicable after the plan
has been accepted for filing shall not be subject to unconscionable
increases beyond ordinary rentals for comparable apartments during the
period of their occupancy considering, in determining comparability,
such factors as building services, level of maintenance and operating
expenses; provided that such proceedings may be commenced against such
tenants for non-payment of rent, illegal use or occupancy of the prem-
ises, refusal of reasonable access to the owner or a similar breach by
the tenant of his obligations to the owner of the dwelling unit or the
shares allocated thereto.
(iv) Eligible senior citizens and eligible disabled persons who reside
in dwelling units subject to government regulation as to rentals and
continued occupancy shall continue to be subject thereto.
(v) The rights granted under the plan to eligible senior citizens and
eligible disabled persons may not be abrogated or reduced notwithstand-
ing any expiration of, or amendment to, this section.
(vi) Any offeror who disputes the election by a person to be an eligi-
ble senior citizen or an eligible disabled person must apply to the
attorney general within thirty days of the receipt of the election forms
for a determination by the attorney general of such person's eligibil-
ity. The attorney general shall, within thirty days thereafter, issue
his determination of eligibility. The foregoing shall, in the absence of
fraud, be the sole method for determining a dispute as to whether a
person is an eligible senior citizen or an eligible disabled person. The
determination of the attorney general shall be reviewable only through a
proceeding under article seventy-eight of the civil practice law and
rules, which proceeding must be commenced within thirty days after such
determination by the attorney general becomes final.
(vii) After the issuance of the letter from the attorney general stat-
ing that the offering statement or prospectus required in subdivision
one of section three hundred fifty-two-e of this article has been
accepted for filing, the offeror shall, on the thirtieth, sixtieth,
eighty-eighth and ninetieth [days] DAY after such date and at least once
every thirty days until the plan is declared effective or abandoned, as
the case may be, and on the second day before the expiration of any
S. 6458 63 A. 8281
exclusive purchase period provided in a substantial amendment to the
plan, (1) file with the attorney general a written statement, under
oath, setting forth the percentage of bona fide tenants in occupancy of
all dwelling units in the building or group of buildings or development
on the date the offering statement or prospectus was accepted for filing
by the attorney general who have executed and delivered written agree-
ments to purchase under the plan as of the date of such statement, and
(2) before noon on the day such statement is filed post a copy of such
statement in a prominent place accessible to all tenants in each build-
ing covered by the plan.
(viii) If the plan is amended before it is declared effective to
provide that it shall be a non-eviction plan, any person who has agreed
to purchase under the plan prior to such amendment shall have a period
of thirty days after receiving written notice of such amendment to
revoke his agreement to purchase under the plan.
(ix) The tenants in occupancy on the date the attorney general accepts
the plan for filing shall have the exclusive right to purchase their
dwelling units or the shares allocated thereto for ninety days after the
plan is accepted for filing by the attorney general, during which time a
tenant's dwelling unit shall not be shown to a third party unless he
has, in writing, waived his right to purchase; subsequent to the expira-
tion of such ninety day period, a tenant in occupancy of a dwelling unit
who has not purchased shall be given the exclusive right for an addi-
tional period of six months from said expiration date to purchase said
dwelling unit or the shares allocated thereto on the same terms and
conditions as are contained in an executed contract to purchase said
dwelling unit or shares entered into by a bona fide purchaser, such
exclusive right to be exercisable within fifteen days from the date of
mailing by registered mail of notice of the execution of a contract of
sale together with a copy of said executed contract to said tenant.
(e) The attorney general finds that an excessive number of long-term
vacancies did not exist on the date that the offering statement or pros-
pectus was first submitted to the department of law. "Long-term vacan-
cies" shall mean dwelling units not leased or occupied by bona fide
tenants for more than five months prior to the date of such submission
to the department of law. "Excessive" shall mean a vacancy rate in
excess of the greater of (i) ten percent and (ii) a percentage that is
double the normal average vacancy rate for the building or group of
buildings or development for two years prior to the January preceding
the date the offering statement or prospectus was first submitted to the
department of law.
(f) The attorney general finds that, following the submission of the
offering statement or prospectus to the department of law, each tenant
in the building or group of buildings or development was provided with a
written notice stating that such offering statement or prospectus has
been submitted to the department of law for filing. Such notice shall be
accompanied by a copy of the offering statement or prospectus and a
statement that the statements submitted pursuant to subparagraph [(vii)]
(XI) of paragraph (c) [or subparagraph (vii) of paragraph (d)] of this
subdivision, whichever is applicable, will be available for inspection
and copying at the office of the department of law where the submission
was made and at the office of the offeror or a selling agent of the
offeror. Such notice shall also be accompanied by a statement that
tenants or their representatives may physically inspect the premises at
any time subsequent to the submission of the plan to the department of
law, during normal business hours, upon written request made by them to
S. 6458 64 A. 8281
the offeror, provided such representatives are registered architects or
professional engineers licensed to practice in the state of New York.
Such notice shall be sent to each tenant in occupancy on the date the
plan is first submitted to the department of law.
3. All dwelling units occupied by non-purchasing tenants shall be
managed by the same managing agent who manages all other dwelling units
in the building or group of buildings or development. Such managing
agent shall provide to non-purchasing tenants all services and facili-
ties required by law on a non-discriminatory basis. The offeror shall
guarantee the obligation of the managing agent to provide all such
services and facilities until such time as the offeror surrenders
control to the board of directors or board of managers, at which time
the cooperative corporation or the condominium association shall assume
responsibility for the provision of all services and facilities required
by law on a non-discriminatory basis.
4. It shall be unlawful for any person to engage in any course of
conduct, including, but not limited to, interruption or discontinuance
of essential services, which substantially interferes with or disturbs
the comfort, repose, peace or quiet of any tenant in his use or occupan-
cy of his dwelling unit or the facilities related thereto. The attorney
general may apply to a court of competent jurisdiction for an order
restraining such conduct and, if he deems it appropriate, an order
restraining the owner from selling the shares allocated to the dwelling
unit or the dwelling unit itself or from proceeding with the plan of
conversion; provided that nothing contained herein shall be deemed to
preclude the tenant from applying on his own behalf for similar relief.
5. Any local legislative body may adopt local laws and any agency,
officer or public body may prescribe rules and regulations with respect
to the continued occupancy by tenants of dwelling units which are
subject to regulation as to rentals and continued occupancy pursuant to
law, provided that in the event that any such local law, rule or regu-
lation shall be inconsistent with the provisions of this section, the
provisions of this section shall control.
6. Any provision of a lease or other rental agreement which purports
to waive a tenant's rights under this section or rules and regulations
promulgated pursuant hereto shall be void as contrary to public policy.
7. THE ATTORNEY GENERAL IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT,
PROMULGATE, AMEND AND RESCIND SUITABLE RULES AND REGULATIONS TO CARRY
OUT THE PROVISIONS OF THIS SECTION, INCLUDING ISSUING WAIVERS OF THE
REQUIREMENTS OF THIS SECTION TO THE EXTENT THE REQUIREMENTS WOULD NOT
CARRY OUT THE INTENT OF THIS SECTION OR THE MARTIN ACT.
8. The provisions of this section shall only be applicable in the city
of New York.
§ 2. This act shall take effect immediately and shall only apply to
plans submitted pursuant to section 352-eeee of the general business law
after the effective date of this act.
PART O
Section 1. Legislative findings. The legislature finds and declares
that:
a. Manufactured homes are a critical source of affordable housing for
residents in New York state.
b. Factors unique to home ownership in manufactured home parks in New
York state require that the owners of such manufactured homes be
S. 6458 65 A. 8281
protected from involuntary forfeiture of their homes due to unreasonable
increases in lot rent.
c. Homeownership in such manufactured home parks differs from other
forms of homeownership as well as from the traditional landlord-tenant
relationship. Unlike other homeowners, because the manufactured homeown-
ers do not control the land on which their manufactured homes exist,
they have no control over this substantial portion of their housing
costs.
d. Vacancies in existing manufactured home parks are extremely rare in
New York state, and the cost of relocating a manufactured home, even if
such a vacancy exists, is prohibitively high and may not be feasible due
to the structural integrity of the home.
e. The manufactured homeowners' lack of bargaining power disrupts the
normal operation of market forces and renders such manufactured homeown-
ers captive to whatever terms a manufactured home park owner may choose
to impose. This results in manufactured homeowners being evicted because
of manufactured home parks' rents they can no longer afford, and as a
result, losing their manufactured home and the equity they have built
altogether because there is not an alternative site on which to place
such home.
f. Under current law, manufactured homeowners who rent in manufactured
home parks have no legal remedy for an unjustifiable and unreasonable
rent increase.
g. The legislature therefore declares that in order to prevent hard-
ship, unjustifiable rent increases, loss of equity, and the dislocation
of residents living in manufactured home parks, the provisions of this
act are necessary to protect the safety and general welfare of manufac-
tured home owners and tenants.
§ 2. Subdivision a of section 233 of the real property law is amended
by adding two new paragraphs 6 and 7 to read as follows:
6. THE TERM "RENT-TO-OWN CONTRACT" SHALL MEAN ANY AGREEMENT BETWEEN A
MANUFACTURED HOME PARK OWNER OR OPERATOR AND A MANUFACTURED HOME RENTER
WHICH PROVIDES THAT AFTER A SPECIFIED TERM OR OTHER CONTINGENCY THE
MANUFACTURED HOME RENTER WILL TAKE OWNERSHIP OF THE RENTED HOME.
7. THE TERM "RENT-TO-OWN PAYMENT" SHALL MEAN ANY PAYMENT OR PAYMENTS
MADE BY A MANUFACTURED HOME RENTER PURSUANT TO A RENT-TO-OWN CONTRACT
WHICH ARE IN ADDITION TO RENTAL PAYMENTS FOR THE RENTED SITE AND THE
RENTED HOME.
§ 3. Paragraphs 1 and 6 of subdivision b of section 233 of the real
property law, paragraph 1 as amended by chapter 566 of the laws of 1996
and paragraph 6 as amended by chapter 561 of the laws of 2008, are
amended to read as follows:
[1. The manufactured home tenant continues in possession of any
portion of the premises after the expiration of his term without the
permission of the manufactured home park owner or operator.]
6. (i) The manufactured home park owner or operator proposes a change
in the use of the land comprising the manufactured home park, or a
portion thereof, on which the manufactured home is located, from manu-
factured home lot rentals to some other use, provided the manufactured
home owner is given written notice of the proposed change of use and the
manufactured home owner's need to secure other accommodations. Whenever
a manufactured home park owner or operator gives a notice of proposed
change of use to any manufactured home owner, the manufactured home park
owner or operator shall, at the same time, give notice of the proposed
change of use to all other manufactured home owners OR TENANTS in the
manufactured home park who will be required to secure other accommo-
S. 6458 66 A. 8281
dations as a result of such proposed change of use. Eviction
proceedings based on a change in use shall not be commenced prior to
[six months] TWO YEARS from the service of notice of proposed change in
use [or the end of the lease term, whichever is later]. Such notice
shall be served in the manner prescribed in section seven hundred thir-
ty-five of the real property actions and proceedings law or by certified
mail, return receipt requested.
(ii) Where a purchaser of a manufactured home park certified that such
purchaser did not intend to change the use of the land pursuant to para-
graph (b) of subdivision two of section two hundred thirty-three-a of
this article, no eviction proceedings based on a change of use shall be
commenced until the expiration of sixty months from the date of the
closing on the sale of the park.
(III) (A) THE MANUFACTURED HOME PARK OWNER OR OPERATOR SHALL PROVIDE
THE MANUFACTURED HOME OWNER A STIPEND OF UP TO FIFTEEN THOUSAND DOLLARS
PER MANUFACTURED HOME OWNER, PURSUANT TO A COURT ORDER. A WARRANT FOR
EVICTION CANNOT BE EXECUTED UNTIL THE STIPEND HAS BEEN PAID TO THE MANU-
FACTURED HOME OWNER BEING EVICTED.
(B) THE COURT SHALL CALCULATE THE STIPEND BASED UPON CONSIDERATION OF
THE FOLLOWING FACTORS:
(1) THE COST OF RELOCATION OF THE MANUFACTURED HOME;
(2) THE NUMBER OF MANUFACTURED HOMES IN THE SAME PARK THAT WOULD BE
RECEIVING A STIPEND;
(3) THE AMOUNT THE REAL PROPERTY IS BEING PURCHASED FOR;
(4) THE VALUE OF THE REAL PROPERTY THE MANUFACTURED HOME IS LOCATED
ON;
(5) THE VALUE OF THE DEVELOPMENT RIGHTS ATTACHED TO REAL PROPERTY
PARCEL THE MANUFACTURED HOME IS LOCATED ON; AND
(6) ANY OTHER FACTORS THE COURT DETERMINES ARE RELEVANT IN EACH CASE.
(C) IN THE EVENT THE MANUFACTURED HOME OWNER IS NOT REMOVED AND THE
EVICTION PROCEEDING IS TERMINATED THE MANUFACTURED HOME OWNER SHALL
RETURN THE STIPEND TO THE PARK OWNER. THE WEIGHT TO BE AFFORDED TO EACH
OF THE VARIOUS FACTORS IS WITHIN THE DISCRETION OF THE TRIAL COURT.
§ 4. Subdivision e of section 233 of the real property law, as amended
by chapter 566 of the laws of 1996, is amended to read as follows:
e. Leases. 1. The manufactured home park owner or operator shall offer
every manufactured home tenant prior to occupancy, the opportunity to
sign a lease for a minimum of one year, which offer shall be made in
writing. ALL LEASE OFFERS, INCLUDING INITIAL AND RENEWAL LEASES, SHALL
INCLUDE A RIDER REGARDING TENANT RIGHTS. SUCH RIDER SHALL BE IN A FORM
APPROVED OR PROMULGATED BY THE COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL AND WHICH SHALL BE MADE AVAILABLE TO MANUFACTURED HOME PARK
OWNERS AND OPERATORS.
2. (i) On or before, as appropriate, (a) the first day of October of
each calendar year with respect to a manufactured home owner [then in
good standing] who is not currently a party to a written lease with a
manufactured home park owner or operator or (b) the ninetieth day next
preceding the expiration date of any existing written lease between a
manufactured home owner [then in good standing] and a manufactured home
park owner or operator, the manufactured home park owner or operator
shall submit to each such manufactured home owner a written offer to
lease for a term of at least twelve months from the commencement date
thereof unless the manufactured home park owner or operator has previ-
ously furnished the manufactured home owner with written notification of
a proposed change of use pursuant to paragraph six of subdivision b of
this section. Any such offer shall include a copy of the proposed lease
S. 6458 67 A. 8281
containing such terms and conditions, including provisions for rent and
other charges, as the manufactured home park owner shall deem appropri-
ate; provided such terms and conditions are consistent with all rules
and regulations promulgated by the manufactured home park operator prior
to the date of the offer and are not otherwise prohibited or limited by
applicable law. Such offer shall also contain a statement advising the
manufactured home owner that if he or she fails to execute and return
the lease to the manufactured home park owner or operator within thirty
days after submission of such lease, the manufactured home owner shall
be deemed to have declined the offer of a lease and shall not have any
right to a lease from the manufactured home park owner or operator for
the next succeeding twelve months.
[(ii) For purposes of this paragraph, a manufactured home owner shall
be deemed in good standing if he or she is not in default in the payment
of more than one month's rent to the manufactured home park owner, and
is not in violation of paragraph three, four or five of subdivision b of
this section. No manufactured home park owner or operator shall refuse
to provide a written offer to lease based on a default of rent payments
or a violation of paragraph three, four or five of subdivision b of this
section unless, at least thirty days prior to the last date on which the
owner or operator would otherwise be required to provide such written
offer to lease, the owner or operator notifies the manufactured home
owner, in writing, of the default in rent or the specific grounds
constituting the violation and such grounds continues up and until the
fifth calendar day immediately preceding the last date on which the
written offer would otherwise be required to be made.
(iii)] (II) For purposes of this paragraph, the commencement date of
any lease offered by the manufactured home park owner to the manufac-
tured home owner shall be the ninetieth day after the date upon which
the manufactured home park owner shall have provided the offer required
pursuant to this paragraph; provided, however, that no such lease shall
be effective if, on such commencement date, the manufactured home owner
is in default of more than one month's rent. In the event the manufac-
tured home owner shall have failed to execute and return said lease to
the manufactured home park owner or operator within thirty days after it
is submitted to the manufactured home owner as required by subparagraph
(i) of this paragraph the manufactured home owner shall be deemed to
have declined to enter said lease.
3. No lease provision shall be inconsistent with any rule or regu-
lation in effect at the commencement of the lease.
4. IF A MANUFACTURED HOME PARK OWNER OR OPERATOR FAILS TO OFFER A
TENANT A LEASE AS PROVIDED IN THIS SUBDIVISION, THE TENANT SHALL HAVE
ALL THE RIGHTS OF A LEASEHOLDER AND MAY NOT BE EVICTED FOR OTHER THAN
THE REASONS SPECIFIED IN PARAGRAPH TWO, THREE, FOUR, FIVE OR SIX OF
SUBDIVISION (B) OF THIS SECTION.
5. ALL RENT INCREASES, INCLUDING ALL FEES, RENTS, CHARGES, ASSESSMENTS
AND UTILITIES, SHALL BE SUBJECT AND PURSUANT TO SECTION TWO HUNDRED
THIRTY-THREE-B OF THIS ARTICLE.
§ 5. Paragraphs 2 and 3 of subdivision g of section 233 of the real
property law, as amended by chapter 566 of the laws of 1996, are amended
to read as follows:
2. A manufactured home park owner or operator shall be required to
fully disclose in writing all fees, charges, assessments, including
rental fees, rules and regulations prior to [a manufactured home tenant
assuming occupancy] ENTERING INTO A RENTAL AGREEMENT WITH A PROSPECTIVE
TENANT in the manufactured home park.
S. 6458 68 A. 8281
3. No fees, charges, assessments or rental fees may be increased by
manufactured home park owner or operator without specifying the date of
implementation of said fees, charges, assessments or rental fees which
date shall be no less than ninety days after written notice to all manu-
factured home tenants. Failure on the part of the manufactured home park
owner or operator to fully disclose all fees, charges or assessments
shall prevent the manufactured home park owner or operator from collect-
ing said fees, charges or assessments, and refusal by the manufactured
home tenant to pay any undisclosed charges shall not be used by the
manufactured home park owner or operator as a cause for eviction in any
court of law. RENT, UTILITIES AND CHARGES FOR FACILITIES AND SERVICES
AVAILABLE TO THE TENANT MAY NOT BE INCREASED UNLESS A LEASE HAS BEEN
OFFERED TO THE TENANT AS REQUIRED BY SUBDIVISION E OF THIS SECTION.
§ 6. Subdivision m of section 233 of the real property law, as amended
by chapter 566 of the laws of 1996, is amended to read as follows:
m. Warranty of habitability, maintenance, disruption of services. In
every written or oral lease or rental agreement entered into by a manu-
factured home tenant, the manufactured home park owner or operator shall
be deemed to covenant and warrant that the premises so leased or rented
and the manufactured home if rented, INCLUDING RENTAL THROUGH A RENT-TO-
OWN CONTRACT, and all areas used in connection therewith in common with
other manufactured home tenants or residents including all roads within
the manufactured home park are fit for human habitation and for the uses
reasonably intended by the parties and that the occupants of such prem-
ises and such manufactured homes if rented shall not be subjected to any
conditions which would be dangerous, hazardous or detrimental to their
life, health or safety. When any such condition has been caused by the
misconduct of the manufactured home tenant or lessee or persons under
his direction or control, it shall not constitute a breach of such
covenants and warranties. The rights and obligations of the manufactured
home park owner or operator and the manufactured home tenant shall be
governed by the provisions of this subdivision and subdivisions two and
three of section two hundred thirty-five-b of this article.
§ 7. Subdivision o of section 233 of the real property law, as amended
by chapter 566 of the laws of 1996, is amended to read as follows:
o. Whenever a lease shall provide that in any action or summary
proceeding the manufactured home park owner or operator may recover
attorney's fees and/or expenses [incurred as the result of the failure
of the tenant to perform any covenant or agreement contained in such
lease, or that amounts paid by the manufactured home park owner or oper-
ator therefor shall be paid by the tenant as additional rent] AWARDED BY
A COURT, there shall be implied in such lease a covenant by the manufac-
tured home park owner or operator, to pay to the tenant the reasonable
attorney's fees and/or expenses incurred by the tenant to the same
extent as is provided in section two hundred thirty-four of this article
which section shall apply in its entirety. A MANUFACTURED HOME PARK
OWNER OR OPERATOR MAY NOT DEMAND THAT A TENANT PAYS ATTORNEYS' FEES
UNLESS SUCH FEES HAVE BEEN AWARDED PURSUANT TO A COURT ORDER.
§ 8. Subdivision r of section 233 of the real property law, as amended
by chapter 566 of the laws of 1996, is amended to read as follows:
r. Limitation on late charges. A late charge on any rental payment by
a manufactured home owner which has become due and remains unpaid shall
not exceed and shall be enforced to the extent of [five] THREE percent
of such delinquent payment; provided, however, that no charge shall be
imposed on any rental payment by a manufactured home owner received
within ten days after the due date. In the absence of a specific
S. 6458 69 A. 8281
provision in the lease or the manufactured home park's rules and regu-
lations, no late charge on any delinquent rental payment shall be
assessed or collected. LATE CHARGES MAY NOT BE COMPOUNDED AND SHALL NOT
BE CONSIDERED ADDITIONAL RENT.
§ 9. Section 233 of the real property law is amended by adding a new
subdivision y to read as follows:
Y. 1. NO MANUFACTURED HOME PARK OWNER OR OPERATOR SHALL OFFER OR
EXECUTE A RENT-TO-OWN CONTRACT UNLESS THE MANUFACTURED PARK OWNER OR
OPERATOR POSSESSES DOCUMENTATION OF OWNERSHIP OF THE MANUFACTURED HOME,
INCLUDING A CERTIFICATE OF TITLE TO THE HOME, IF THE HOME IS A MANUFAC-
TURED HOME SUBJECT TO BEING TITLED PURSUANT TO ARTICLE FORTY-SIX OF THE
VEHICLE AND TRAFFIC LAW, OR FOR MOBILE HOMES NOT SUBJECT TO BEING TITLED
PURSUANT TO SUCH LAW, SUCH OTHER DOCUMENTATION, WHICH MAY INCLUDE A BILL
OF SALE, OR DEED, SUFFICIENT TO ESTABLISH OWNERSHIP.
2. EVERY RENT-TO-OWN CONTRACT SHALL BE IN WRITING AND CLEARLY STATE
ALL TERMS, INCLUDING BUT NOT LIMITED TO: A DESCRIPTION OF THE HOME TO BE
LEASED, INCLUDING THE NAME OF THE MANUFACTURER, THE SERIAL NUMBER AND
THE YEAR OF MANUFACTURE; THE SITE NUMBER UPON WHICH THE HOME IS LOCATED
IN THE MANUFACTURED HOME PARK; AN ITEMIZED STATEMENT OF ANY PAYMENTS TO
BE MADE DURING THE TERM OF THE CONTRACT, INCLUDING THE INITIAL LOT RENT,
THE RENTAL AMOUNT FOR THE HOME, AND THE AMOUNT OF THE RENT-TO-OWN
PAYMENTS; THE TERM OF THE AGREEMENT; THE NUMBER OF PAYMENTS, ITEMIZED,
REQUIRED TO BE MADE OVER THE TERM OF THE AGREEMENT; THE ANNUAL PERCENT-
AGE RATE OF THE AMOUNT FINANCED, IF APPLICABLE; AND THE AMOUNT OF ANY
ADDITIONAL FEES TO BE PAID DURING THE TERM. A RENT-TO-OWN CONTRACT SHALL
NOT REQUIRE A MANUFACTURED HOME TENANT TO PAY ANY ADDITIONAL FEES FOR
TRANSFER OF OWNERSHIP AT THE END OF THE LEASE PERIOD. A RENT-TO-OWN
CONTRACT SHALL PROVIDE THAT WHERE THE RENT-TO-OWN TENANT PAYS ALL RENT-
TO-OWN PAYMENTS AND OTHER FEES ESTABLISHED IN THE CONTRACT DURING THE
LEASE TERM, TITLE TRANSFERRED AT THE END OF THE LEASE TERM SHALL BE FREE
OF SUPERIOR INTERESTS, LIENS OR ENCUMBRANCES.
3. VALUATIONS USED TO DETERMINE THE FAIR MARKET VALUE OF THE MANUFAC-
TURED HOME AT THE TIME THE RENT-TO-OWN CONTRACT IS ENTERED INTO, SHALL
BE BASED ON THE INFORMATION PROVIDED BY AN INDEPENDENT SYSTEM, ENTITY,
PUBLICATION OR PUBLICATIONS THAT PROVIDE VALUATION INFORMATION FOR MANU-
FACTURED HOMES ADJUSTED, AS APPROPRIATE, BY REASONABLE AND IDENTIFIABLE
REGIONAL MARKET DATA, SUCH AS LOCATION, PARK-SPECIFIC AMENITIES, TRENDS
AND COMPARABLE SALES.
4. EVERY RENT-TO-OWN CONTRACT SHALL CLEARLY STATE THAT THE MANUFAC-
TURED HOME TENANT IS OCCUPYING A RENTED HOME, UNTIL OWNERSHIP IS TRANS-
FERRED, AND THAT THE MANUFACTURED HOME PARK OWNER AND OPERATOR SHALL BE
RESPONSIBLE FOR COMPLIANCE WITH THE WARRANTY OF HABITABILITY, INCLUDING
BUT NOT LIMITED TO ALL MAJOR REPAIRS AND CAPITAL IMPROVEMENTS.
5. WITH THE EXECUTION OF EVERY RENT-TO-OWN CONTRACT, THE MANUFACTURED
HOME PARK OWNER OR OPERATOR SHALL OFFER THE MANUFACTURED HOME TENANT A
LEASE FOR THE SITE ON WHICH THE HOME IS LOCATED AS PROVIDED IN SUBDIVI-
SION F OF THIS SECTION, AND, IF THE TERM OF THE RENT-TO-OWN CONTRACT IS
LONGER THAN THE TERM OF THE INITIAL SITE LEASE, SHALL OFFER RENEWAL
LEASES ON THE SAME TERMS AS PROVIDED TO MANUFACTURED HOME TENANTS WITHIN
THE PARK PURSUANT TO SUBDIVISION E OF THIS SECTION, PROVIDED THAT SUCH
RENEWAL LEASE MAY NOT INCLUDE A RENT INCREASE GREATER THAN THAT IMPOSED
ON SIMILARLY SITUATED MANUFACTURED HOME TENANTS THAT OWN THEIR HOME
WITHIN THE PARK.
6. THE MANUFACTURED HOME PARK OWNER OR OPERATOR SHALL PROVIDE EACH
MANUFACTURED HOME TENANT WHO IS A PARTY TO A RENT-TO-OWN CONTRACT AN
ITEMIZED ACCOUNTING LISTING ALL PAYMENTS MADE PURSUANT TO THE RENT-TO-
S. 6458 70 A. 8281
OWN CONTRACT. SUCH ACCOUNTING SHALL BE PROVIDED NO LESS THAN ONCE EACH
YEAR, BEGINNING ONE YEAR FROM THE EXECUTION OF THE RENT-TO-OWN CONTRACT.
UPON REQUEST BY A MANUFACTURED HOME TENANT, THE MANUFACTURED HOME PARK
OWNER OR OPERATOR SHALL PROVIDE SUCH AN ACCOUNTING WITHIN TEN DAYS OF
SUCH REQUEST.
7. ANY SUCCESSOR TO OWNERSHIP OF THE MANUFACTURED HOME PARK SHALL BE
BOUND BY THE TERMS OF A RENT-TO-OWN CONTRACT ENTERED INTO AFTER THE
EFFECTIVE DATE OF THIS SUBDIVISION.
8. IF A MANUFACTURED HOME TENANT'S TENANCY IS TERMINATED BY THE MANU-
FACTURED HOME PARK OWNER OR OPERATOR DURING THE TERM OF A RENT-TO-OWN
CONTRACT, ALL RENT-TO-OWN PAYMENTS MADE DURING THE TERM OF THE CONTRACT
SHALL BE REFUNDED TO THE MANUFACTURED HOME TENANT; IF A MANUFACTURED
HOME PARK OWNER OR OPERATOR FAILS TO REFUND SUCH PAYMENTS, IN AN
EVICTION PROCEEDING, THE COURT MAY AWARD THE MANUFACTURED HOME RENTER
DAMAGES IN THE AMOUNT OF THE RENT-TO-OWN PAYMENTS WHICH HAVE NOT BEEN
REFUNDED.
9. IT IS A VIOLATION OF THIS SECTION FOR A MANUFACTURED HOME PARK
OWNER OR OPERATOR TO MAKE ANY MATERIAL MISREPRESENTATION, EITHER WRITTEN
OR ORAL, REGARDING ANY OF THE TERMS OF A RENT-TO-OWN CONTRACT, OR TO
OBTAIN, OR ATTEMPT TO OBTAIN, A WAIVER FROM ANY MANUFACTURED HOME RENTER
OF ANY PROTECTION OR RIGHT PROVIDED UNDER THIS SUBDIVISION.
10. (I) IF A MANUFACTURED HOME PARK OWNER OR OPERATOR VIOLATES THE
PROVISIONS OF THIS SUBDIVISION OR WRONGFULLY EVICTS A MANUFACTURED HOME
TENANT WHO IS A PARTY TO A RENT-TO-OWN CONTRACT, A COURT MAY AWARD
DAMAGES INCLUDING TREBLE THE ECONOMIC DAMAGES SUFFERED BY THE MANUFAC-
TURED HOME TENANT, WHICH MAY INCLUDE ALL RENT-TO-OWN PAYMENTS. THE COURT
MAY ALSO PROVIDE FOR REASONABLE ATTORNEY FEES AND COSTS OF LITIGATION,
AND OTHER EQUITABLE RELIEF.
(II) FAILURE OF THE MANUFACTURED HOME PARK OWNER OR OPERATOR TO COMPLY
WITH THIS SECTION SHALL GIVE THE MANUFACTURED HOME RENTER THE UNCONDI-
TIONAL RIGHT TO CANCEL THE RENT-TO-OWN CONTRACT AND RECEIVE IMMEDIATE
REFUND OF ALL PAYMENTS AND DEPOSITS MADE ON ACCOUNT OF OR IN CONTEM-
PLATION OF THE LEASE WITH THE RENT-TO-OWN CONTRACT.
11. THE PROVISIONS OF THIS SECTION APPLY TO RENT-TO-OWN CONTRACTS AND
TENANTS WITH RENT-TO-OWN CONTRACTS.
§ 10. Paragraphs (a) and (c) of subdivision 2 of section 233-a of the
real property law, as added by chapter 561 of the laws of 2008, are
amended to read as follows:
(a) If a manufactured home park owner receives a bona fide offer to
purchase a manufactured home park that such manufactured home park owner
intends to accept, OR RESPOND WITH A COUNTEROFFER, such manufactured
home park owner shall require the prospective purchaser to provide, in
writing, the certification required by paragraph (b) of this subdivi-
sion, and shall not accept any offer to purchase, nor respond with a
counteroffer until such manufactured home park owner has received such
certification AND MET THE REQUIREMENTS OF THIS SECTION.
(c) If a manufactured home park owner TAKES ANY ACTION TO MARKET OR
OFFER THE PARK FOR SALE, OR receives a bona fide offer to purchase a
manufactured home park that such manufactured home park owner intends to
ACCEPT OR respond to with a counteroffer, [such counteroffer] A MANUFAC-
TURED HOME PARK OWNER shall include a notice stating that such ACCEPT-
ANCE OR counteroffer shall be subject to the right of the homeowners of
the manufactured home park to purchase the manufactured home park pursu-
ant to this subdivision. Notwithstanding any provision of law OR AGREE-
MENT to the contrary, every [acceptance of a counteroffer] AGREEMENT TO
PURCHASE A MANUFACTURED HOME PARK by a prospective purchaser of a manu-
S. 6458 71 A. 8281
factured home park shall be [deemed to be] subject to the right of the
homeowners of the manufactured home park to purchase the manufactured
home park pursuant to this subdivision if the purchaser certifies pursu-
ant to paragraph (b) of this subdivision that he or she intends to
change the use of the land.
§ 11. The first subdivision 3 of section 233-a of the real property
law, as added by chapter 561 of the laws of 2008, is amended to read as
follows:
3. (a) If a manufactured home park owner receives a bona fide offer to
purchase a manufactured home park that such manufactured home park owner
intends to accept or respond to with a counteroffer, and the purchaser
has certified pursuant to paragraph (b) of subdivision two of this
section that he intends to change the use of the land, such manufactured
home park owner shall notify:
(i) the officers of the manufactured homeowners' association within
such park of [the offer to purchase and] all the terms thereof; provided
that the park owner has been notified of the establishment of a manufac-
tured homeowners' association and been provided with the names and
addresses of the officers of such association; or
(ii) if no homeowners' association exists, all manufactured homeowners
in the manufactured home park; AND
(III) THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL.
(b) The manufactured home park owner's notification shall state:
(I) the price [and];
(II) THE MATERIAL terms and conditions of sale [or, in the case where
such manufactured home park owner intends to make a counteroffer, the
price and material terms and conditions] upon which such manufactured
home park owner would sell the park;
(III) THAT THE MANUFACTURED HOMEOWNERS HAVE THE RIGHT TO ORGANIZE A
MANUFACTURED HOMEOWNERS' ASSOCIATION OR A MANUFACTURED HOMEOWNERS' COOP-
ERATIVE FOR THE PARK;
(IV) THAT PURCHASE FINANCING MAY BE AVAILABLE THROUGH THE NEW YORK
STATE HOMES AND COMMUNITY RENEWAL; AND
(V) THAT THE MANUFACTURED HOMEOWNERS' ASSOCIATION, A COOPERATIVE, OR
MANUFACTURED HOME OWNERS OR TENANTS HAVE ONE HUNDRED FORTY DAYS TO EXER-
CISE THEIR RIGHT TO PURCHASE THE PARK IN ACCORDANCE WITH THIS SECTION.
(c) (i) If a manufactured homeowners' association exists at the time
of the offer, the association shall have the right to purchase the park;
provided that the association shall have delivered to the manufactured
home park owner an executed offer to purchase which meets the identical
price, terms, and conditions of the offer or counteroffer provided in
the notice of the manufactured home park owner within one hundred [twen-
ty] FORTY days of receipt of notice from the manufactured home park
owner, unless otherwise agreed to in writing. DURING THIS TIME PERIOD,
THE PARK OWNER SHALL NOT ACCEPT A FINAL UNCONDITIONAL OFFER TO PURCHASE
THE PARK.
(ii) If an offer to purchase by the association is not delivered with-
in such one hundred [twenty] FORTY day period, then, unless the park
owner thereafter elects to offer to sell the park at a price lower than
the price specified in the notice to the homeowners' association or at
terms substantially different from those presented to the association,
the park owner has no further obligations under this section.
(iii) If the park owner, after such one hundred [twenty] FORTY day
period, elects to offer to sell the park at a price lower than the price
specified in the notice given or at terms substantially different from
those previously presented to the association, then the association
S. 6458 72 A. 8281
shall be entitled to notice thereof and shall have an additional [ten]
THIRTY days after receipt of notice of the revised terms to deliver to
the park owner an executed offer to purchase which meets the revised
price, terms, and conditions as presented by the park owner.
(d) (i) If there is no existing homeowners' association at the time of
the offer, the homeowners shall have the right to purchase the park;
provided the following conditions are met:
(A) The manufactured homeowners shall have the right to form a manu-
factured homeowners' association, whether incorporated or not.
(B) Such homeowners' association shall include at least fifty-one
percent of all manufactured homeowners, who shall have given written
consent to forming a manufactured homeowners' association. The
provisions of section two hundred twenty-three-b of this article shall
apply to the formation of a manufactured homeowners' association.
(C) The association, acting through its officers, shall have given
notice to the park owner of its formation, the names and addresses of
its officers, and delivered an executed offer to purchase the park at
the identical price, terms, and conditions of the offer presented in the
notification given by the park owner within one hundred [twenty] FORTY
days of receipt of notice from the park owner, unless otherwise agreed
to in writing. DURING THIS TIME PERIOD, THE PARK OWNER SHALL NOT ACCEPT
A FINAL UNCONDITIONAL OFFER TO PURCHASE THE PARK.
(ii) If the homeowners fail to form a manufactured homeowners' associ-
ation, or if upon the formation of a manufactured homeowners' associ-
ation, the association does not deliver an executed offer to purchase as
set forth in paragraph (a) of this subdivision within the one hundred
[twenty] FORTY day period, then, unless the park owner elects to offer
the park at a price lower than the price specified in the notice previ-
ously presented to the homeowners, the park owner has no further obli-
gation under this section; and
(iii) If the park owner thereafter elects to sell the park at a price
lower than the price specified in the notice to the homeowners or at
terms substantially different from those previously presented, then the
association shall have an additional [ten] THIRTY days after receipt of
notice of the revised terms to deliver to the park owner an executed
offer to purchase which meets the revised price, terms, and conditions
as presented by the park owner.
§ 12. The real property law is amended by adding a new section 233-b
to read as follows:
§ 233-B. MANUFACTURED HOME PARKS; RENT INCREASES. 1. THE PROVISIONS OF
THIS SECTION SHALL APPLY TO ALL MANUFACTURED HOMES LOCATED IN A MANUFAC-
TURED HOME PARK AS DEFINED IN SECTION TWO HUNDRED THIRTY-THREE OF THIS
ARTICLE, HOWEVER MANUFACTURED HOMES LOCATED IN MANUFACTURED HOME PARKS
THAT ARE SUBJECT TO A REGULATORY AGREEMENT WITH A GOVERNMENTAL ENTITY TO
PRESERVE AFFORDABLE HOUSING OR THAT OTHERWISE LIMITS RENT INCREASES ARE
EXEMPT FROM THE PROVISIONS OF THIS SECTION.
2. INCREASES IN RENT SHALL NOT EXCEED A THREE PERCENT INCREASE ABOVE
THE RENT SINCE THE CURRENT RENT BECAME EFFECTIVE. IN THIS SECTION, RENT
SHALL MEAN ALL COSTS, INCLUDING ALL RENT, FEES, CHARGES, ASSESSMENTS,
AND UTILITIES. NOTWITHSTANDING THE ABOVE, A MANUFACTURED HOME PARK OWNER
IS PERMITTED TO INCREASE THE RENT IN EXCESS OF THREE PERCENT ABOVE THE
RENT SINCE THE CURRENT RENT BECAME EFFECTIVE, DUE TO:
(A) INCREASES IN THE MANUFACTURED HOME PARK OWNER'S OPERATING
EXPENSES.
(B) INCREASES IN THE MANUFACTURED HOME PARK OWNER'S PROPERTY TAXES ON
SUCH PARK.
S. 6458 73 A. 8281
(C) INCREASES IN COSTS WHICH ARE DIRECTLY RELATED TO CAPITAL IMPROVE-
MENTS IN THE PARK.
3. AN INCREASE ABOVE THREE PERCENT MAY BE CHALLENGED BY AN AGGRIEVED
MANUFACTURED HOMEOWNER AS UNJUSTIFIED. MULTIPLE AGGRIEVED MANUFACTURED
HOMEOWNERS MAY JOIN IN THE SAME ACTION WHERE THERE IS A COMMON QUESTION
OF LAW AND FACT.
4. WITHIN NINETY DAYS OF THE PROPOSED INCREASE, AN AGGRIEVED MANUFAC-
TURED HOMEOWNER MAY CHALLENGE SUCH INCREASE BY FILING AN ACTION IN THE
COURT OF APPROPRIATE SUBJECT MATTER JURISDICTION WHERE THE REAL PROPERTY
IS LOCATED SEEKING A DECLARATORY JUDGMENT THAT THE RENT INCREASE IS
UNJUSTIFIABLE.
5. IN ANY PROCEEDING UNDER THIS SECTION THERE SHALL BE AN IRREBUTTABLE
PRESUMPTION THAT A RENT INCREASE IS JUSTIFIABLE WHEN THE AMOUNT OF SUCH
INCREASE DOES NOT EXCEED THE TENANT'S PRO-RATA SHARE IN OPERATING COSTS
AND PROPERTY TAXES FOR THE MANUFACTURED HOME PARK IN WHICH THE MANUFAC-
TURED HOME OWNER RESIDES.
6. (A) IN DETERMINING WHETHER A RENT INCREASE IS PERMISSIBLE, THE
COURT SHALL CONSIDER THE PROVISIONS OF PARAGRAPHS (A), (B) AND (C) OF
SUBDIVISION TWO OF THIS SECTION. NOTWITHSTANDING THE ABOVE, RENT
INCREASES SHALL NOT EXCEED SIX PERCENT ABOVE THE RENT SINCE THE CURRENT
RENT BECAME EFFECTIVE, EXCEPT UPON THE APPROVAL OF A TEMPORARY HARDSHIP
APPLICATION BY THE COURT. IN ADDITION TO THE PROVISIONS OF THIS PARA-
GRAPH AND PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION THE COURT SHALL
TAKE INTO ACCOUNT THE FOLLOWING FACTORS WHEN DETERMINING WHETHER TO
GRANT A TEMPORARY HARDSHIP APPLICATION:
(I) THE AMOUNT OF INCREASE BEING SOUGHT BY THE PARK OWNERS;
(II) THE ABILITY OF THE MANUFACTURED HOME OWNER TO PAY SUCH INCREASE
INCLUDING WHETHER THE INCREASE WOULD HAVE AN UNREASONABLE ADVERSE IMPACT
ON THE MANUFACTURED HOME OWNER;
(III) THE AMOUNT OF TIME AND NOTICE THE MANUFACTURED HOME OWNER MAY
NEED IN ORDER TO PAY A TEMPORARY RENT INCREASE;
(IV) THE DURATION THE PARK OWNERS INTEND FOR THE TEMPORARY RENT
INCREASE TO LAST;
(V) THE CAUSE OF THE HARDSHIP THE RENT INCREASE IS BEING REQUESTED TO
ALLEVIATE, INCLUDING WHETHER THE HARDSHIP WAS DUE TO OWNER NEGLIGENCE
AND MALFEASANCE;
(VI) THE ABILITY OF THE PARK OWNERS TO UTILIZE OTHER MEANS BESIDES A
RENT INCREASE TO ALLEVIATE SAID HARDSHIP;
(VII) THE LIKELIHOOD THAT THE PROPERTY THE MANUFACTURED HOME PARK IS
LOCATED ON WILL GO INTO FORECLOSURE IF A TEMPORARY RENT INCREASE ABOVE
SIX PERCENT IS NOT GRANTED;
(VIII) ANY OTHER FACTOR THAT WILL JEOPARDIZE THE ABILITY OF THE PARK
TO LEGALLY OPERATE.
(B) A COURT ORDER APPROVING A TEMPORARY HARDSHIP APPLICATION SHALL
STATE FOR EACH MANUFACTURED HOME OWNER:
(I) THE AMOUNT OF THE RENT INCREASE;
(II) THE DATE THE RENT INCREASE IS TO TAKE EFFECT;
(III) THE DATE THE INCREASE IS TO END;
(IV) THE AMOUNT THE RENT WILL RETURN TO; AND
(V) THE COURT'S FINDINGS AS TO THE FACTORS NECESSITATING A TEMPORARY
INCREASE.
(C) UPON A FINDING BY THE COURT THAT THE MANUFACTURED HOME PARK SHOULD
BE GRANTED A HARDSHIP EXEMPTION, THE AMOUNT OF ANY RENT INCREASE SHALL
BE THE MINIMUM AMOUNT TO ALLEVIATE THE HARDSHIP. AN ORDER GRANTING A
TEMPORARY RENT INCREASE SHALL NOT EXCEED SIX MONTHS. THE ORDER MUST BE
SERVED ON THE MANUFACTURED HOME OWNERS AND ALL KNOWN LEGAL TENANTS
S. 6458 74 A. 8281
PURSUANT TO THE RULES OF CIVIL PROCEDURE WITHIN THIRTY DAYS OF THE COURT
ORDER, THE COST OF WHICH SHALL BE ON THE MANUFACTURED HOME PARK OWNER.
7. THE COURT MAY CONDITION ITS APPROVAL OF ANY RENT INCREASE UPON THE
REDRESS OF CONDITIONS IN THE MANUFACTURED HOME PARK WHICH THREATEN THE
HEALTH AND SAFETY OF THE MANUFACTURED HOME TENANT.
8. WHILE A CHALLENGE TO A RENT INCREASE PURSUANT TO THIS SECTION IS
PENDING, MANUFACTURED HOME PARK TENANTS SHALL PAY THE AMOUNT OF THE RENT
INCREASE TO THE MANUFACTURED HOME PARK OWNER WHO SHALL HOLD SUCH AMOUNTS
IN ESCROW PENDING A MEDIATED AGREEMENT BETWEEN THE PARTIES OR A FINAL
DECISION FROM THE COURTS, PROVIDED, HOWEVER, THAT NO MANUFACTURED HOME
PARK TENANT SHALL BE EVICTED FOR NON-PAYMENT OF THE RENT INCREASE PRIOR
TO THE FINAL DISPOSITION OF THE MATTER BY THE COURT IN THE COUNTY WHERE
THE MANUFACTURED HOME PARK IS LOCATED. FAILURE BY THE MANUFACTURED HOME
PARK OWNER TO PLACE SUCH CHALLENGED RENT INCREASE IN ESCROW SHALL BE
PUNISHABLE BY A CIVIL PENALTY OF NOT MORE THAN FIVE HUNDRED DOLLARS. IF
THE PETITIONERS APPEAL, THE MANUFACTURED HOME PARK OWNER MAY REMOVE THE
RENT INCREASE FUNDS FROM ESCROW, MINGLE SUCH FUNDS WITH ANY OTHER FUNDS,
AND COMMENCE A NONPAYMENT PROCEEDING IN THE COURT OF APPROPRIATE JURIS-
DICTION AGAINST A TENANT WHO HAS NOT PAID THE INCREASE OF RENT. IF THE
COURT ENTERS A FINAL JUDGMENT DECLARING THE RENT INCREASES OR ANY PART
THEREOF UNJUSTIFIABLE AND IMPERMISSIBLE, THE MANUFACTURED HOME PARK
OWNER SHALL REFUND THE AMOUNT OF THE IMPERMISSIBLE INCREASE TO EACH
TENANT HOUSEHOLD.
§ 13. Severability. If any provision of this act, or any application
of any provision of this act, is held to be invalid, that shall not
affect the validity or effectiveness of any other provision of this act,
or of any application of any provision of this act, which can be given
effect without that provision or application; and to that end, the
provisions and applications of this act are severable.
§ 14. This act shall take effect on the thirtieth day after it shall
have become a law.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through O of this act shall be
as specifically set forth in the last section of such Parts.