S T A T E O F N E W Y O R K
________________________________________________________________________
2208
2021-2022 Regular Sessions
I N A S S E M B L Y
January 14, 2021
___________
Introduced by M. of A. BARNWELL -- read once and referred to the Commit-
tee on Housing
AN ACT to amend the public housing law, the emergency tenant protection
act of nineteen seventy-four and the administrative code of the city
of New York, in relation to penalties for owners of property who fail
to file a proper or timely rent registration statement
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The commissioner of housing and community renewal shall
distribute to each unit rent controlled or rent stabilized at any point
since 1971 a copy of such unit's rent history, regardless of the current
rent regulation status of the unit, as well as literature describing how
a tenant can identify a possible rent overcharge.
§ 2. Section 14 of the public housing law is amended by adding a new
subdivision 8 to read as follows:
8. THE COMMISSIONER SHALL GENERATE AND DISTRIBUTE LITERATURE EXPLAIN-
ING HOW TO IDENTIFY A POSSIBLE RENT OVERCHARGE. THE COMMISSIONER SHALL
CONDUCT GEOGRAPHIC LANGUAGE STUDIES TO ENSURE THAT SUCH LITERATURE IS
AVAILABLE TO ALL RESIDENTS, NOT JUST THOSE WHO SPEAK AND READ ENGLISH.
§ 3. Paragraph 1 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 section 1 of part
F of chapter 36 of the laws of 2019, is amended and a new paragraph 10
is added 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07059-01-1
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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. If the owner establishes by a preponderance of the
evidence that the overcharge was neither willful nor attributable to his
negligence, the state division 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 practice 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] PRIOR annual registration
[statement for a rent stabilized tenant filed 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)] STATEMENTS
plus in each case any subsequent lawful increases and adjustments, LESS
ANY APPROPRIATE PENALTIES. 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 determinations. (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 six years prior to] AS OF the date
of the initial registration of the housing accommodation (or, if the
housing accommodation was NOT PREVIOUSLY subject to this act [for less
than six years], the initial legal regulated rent) plus in each case,
any lawful increases and adjustments, LESS ANY APPROPRIATE PENALTIES.
Where the rent charged on the date six years prior to the date of the
initial registration of the accommodation cannot be established, such
rent shall be established by the division.
(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 [may] SHALL be filed
with the state division of housing and community renewal or in a court
of competent jurisdiction at any time, however any recovery of over-
charge penalties shall be limited to the six years preceding the
complaint.
(ii) A penalty of three times the overcharge shall be assessed upon
all overcharges willfully collected by the owner starting [six years] AT
ANY TIME 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 subdivi-
sion 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.
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(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. The courts and the division shall
have concurrent jurisdiction, subject to the tenant's choice of forum.
(10) A PENALTY SHALL BE ASSESSED AGAINST AN OWNER WHO FAILS TO FILE A
TIMELY OR PROPER INITIAL, ANNUAL OR SUPPLEMENTAL RENT REGISTRATION
STATEMENT OR FAILS TO SUPPLY THE UNIT'S RENT HISTORY WITH A LEASE UNDER
SECTION 12-A OF THIS ACT OF TWO THOUSAND DOLLARS PER UNIT FOR BUILDINGS
WITH LESS THAN FIFTEEN UNITS AND OF FIVE THOUSAND DOLLARS PER UNIT FOR
BUILDINGS WITH FIFTEEN UNITS OR MORE. SUCH PENALTY SHALL BE PAID TO THE
TENANT OF THE UNIT, EITHER AS CASH, CHECK OR A CREDIT TOWARD THEIR
MONTHLY RENT. SHOULD THE TENANT'S LEASE EXPIRE BEFORE THE CREDIT TOWARD
THEIR MONTHLY RENT IS PAID, THEN THE REMAINDER OF THE CREDIT WILL BE
PAID OUT AS A CASH AWARD. THE CHOICE OF CASH, CHECK, OR RENT CREDIT
SHALL BE DETERMINED BY THE TENANT.
§ 4. Section 12-a 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 two new subdivisions i and j to read as
follows:
I. A SUPPLEMENTAL STATEMENT SHALL BE FILED CONTAINING THE CURRENT RENT
FOR EACH UNIT AND SUCH OTHER INFORMATION CONTAINED IN SUBDIVISION A OF
THIS SECTION AS SHALL BE REQUIRED BY THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL WITHIN NINETY DAYS OF THE RENT ON A UNIT BEING RAISED. THE
OWNER SHALL PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT
PORTION OF SUCH STATEMENT AS PERTAINS TO THE TENANT'S UNIT.
J. THE OWNER SHALL SUPPLY WITH EACH LEASE (1) LITERATURE ON RENT
HISTORY PRODUCED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND
(2) A COPY OF SUCH UNIT'S ENTIRE RENT HISTORY.
§ 5. Subdivision a of section 26-516 of the administrative code of
the city of New York, as amended by section 4 of part F of chapter 36 of
the laws of 2019, is amended and a new subdivision j is added 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
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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. If the owner establishes by a preponderance of the
evidence that the overcharge was not willful, the state division of
housing and community renewal shall establish the penalty as the amount
of the overcharge plus interest. 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 the AMOUNT OF rent indicated in [the most recent
reliable] PRIOR annual registration [statement filed and served upon the
tenant six or more years prior to the most recent registration state-
ment, (or, if more recently filed, the initial registration statement)]
STATEMENTS plus in each case any subsequent lawful increases and adjust-
ments, LESS ANY APPROPRIATE PENALTIES. 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 determinations. (ii) As to complaints filed within ninety days
of the initial registration of a housing accommodation, the legal regu-
lated rent shall be deemed to be the rent charged [on the date six years
prior to] AS OF the date of the initial registration of the housing
accommodation (or, if the housing accommodation was NOT PREVIOUSLY
subject to this chapter [for less than six years], the initial legal
regulated rent) plus in each case, any lawful increases and adjustments,
LESS ANY APPROPRIATE PENALTIES. Where the rent charged [on the date six
years prior to] AS OF the date of the initial registration of the accom-
modation cannot be established, such rent shall be established by the
division.
Where the prior rent charged 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.
(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) A complaint under this subdivision may be filed with the state
division of housing and community renewal 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]. A penalty of
three times the overcharge shall be assessed upon all overcharges will-
fully collected by the owner [starting six years] AT ANY TIME before the
complaint is filed.
(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 shall be assessed the reason-
able 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
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pursuant to section five thousand four of the civil practice law and
rules.
(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.
J. A PENALTY SHALL BE ASSESSED AGAINST AN OWNER WHO FAILS TO FILE A
TIMELY OR PROPER INITIAL, ANNUAL OR SUPPLEMENTAL RENT REGISTRATION
STATEMENT OR FAILS TO SUPPLY THE UNIT'S RENT HISTORY WITH A LEASE UNDER
SECTION 26-517 OF THIS CHAPTER OF TWO THOUSAND DOLLARS PER UNIT FOR
BUILDINGS WITH LESS THAN FIFTEEN UNITS AND OF FIVE THOUSAND DOLLARS PER
UNIT FOR BUILDINGS WITH FIFTEEN UNITS OR MORE. SUCH PENALTY SHALL BE
PAID TO THE TENANT OF THE UNIT, EITHER AS CASH, CHECK OR A CREDIT TOWARD
THEIR MONTHLY RENT. SHOULD THE TENANT'S LEASE EXPIRE BEFORE THE CREDIT
TOWARD THEIR MONTHLY RENT IS PAID, THEN THE REMAINDER OF THE CREDIT WILL
BE PAID OUT AS A CASH AWARD. THE CHOICE OF CASH, CHECK, OR RENT CREDIT
SHALL BE DETERMINED BY THE TENANT.
§ 6. Section 26-517 of the administrative code of the city of New York
is amended by adding two new subdivisions h and i to read as follows:
H. A SUPPLEMENTAL STATEMENT SHALL BE FILED CONTAINING THE CURRENT RENT
FOR EACH UNIT AND SUCH OTHER INFORMATION CONTAINED IN SUBDIVISION A OF
THIS SECTION AS SHALL BE REQUIRED BY THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL WITHIN NINETY DAYS OF THE RENT ON A UNIT BEING RAISED. THE
OWNER SHALL PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT
PORTION OF SUCH STATEMENT AS PERTAINS TO THE TENANT'S UNIT.
I. THE OWNER SHALL SUPPLY WITH EACH LEASE (1) LITERATURE ON RENT
HISTORY PRODUCED BY THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL
AND (2) A COPY OF SUCH UNIT'S ENTIRE RENT HISTORY.
§ 7. This act shall take effect immediately; provided that the amend-
ments to sections 26-516 and 26-517 of chapter 4 of title 26 of the
administrative code of the city of New York made by sections five and
six 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.