NY State Senate Bill 2021-S4137

Senate Bill S4137

2021-2022 Legislative Session

Requires the department of buildings to maintain a registry of all deeds containing restrictive covenants

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to housing, construction and community development
Feb 02, 2021	referred to housing, construction and community development

2021-S4137 (ACTIVE) - Details

See Assembly Version of this Bill:: A763
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Add §27-106, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6190, A8615
2015-2016: S1099, A660
2017-2018: S1272, A1538
2019-2020: S2551, A224
2023-2024: S3476, A5654

2021-S4137 (ACTIVE) - Summary

Requires the department of buildings to maintain a registry of all deeds containing restrictive covenants.

2021-S4137 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4137

SPONSOR: STAVISKY
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to the filing of deeds containing restrictive covenants

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of the bill is to allow homeowners and
homeowner/neighborhood associations whose properties are subject to
restrictive covenants or other types of deed restrictions, to register
such deeds with the Department of Buildings.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the administrative code by adding a new
section 27-106 to create a registry of deeds with restrictive covenants
that are filed with the Department of Buildings. Section a of the bill
allows such deeds to be filed by any homeowner or homeowner association,

as well as by or on behalf of a neighborhood or civic association whose
area of geographic concern as set forth in its organizing document
encompasses the property that is subject to the deed restriction.

Section b of the bill requires the Department of Buildings to search the
registry of deeds prior to the issuance of any permit to determine
whether issuance of the permit would violate any terms of the deed
restriction. If the permit would violate the deed restriction then the
Department of Buildings would be mandated to refuse to issue the permit
unless ordered to do so by a court. The bill also prevents a homeowner
or homeowner association or a neighborhood or civic association that
does not file a restrictive covenant from collecting damages against the
Department of Buildings for failure to enforce those restrictions.
Finally the bill makes explicit that this section does not limit or
reduce the rights of owners or homeowner associations to engage in legal
action to enforce such covenants.

Section 2 of the bill sets forth an immediate effective date.

 
JUSTIFICATION:

This bill will allow a homeowner or homeowner association, as well as a
neighborhood or civic association whose area of geographic concern as
set forth in its organizing document encompasses the property that is
subject to the deed restriction to file such restrictions with the
Department of Buildings. In turn, the Department of Buildings would be
required to review the deed registry prior to issuing any permits to
ensure that such permits would not violate the terms of any filed
restriction.

Many residential communities in the city of New York were. designed with
a specific housing stock in mind. Community planners sought to create
residential neighborhoods with a particular sense of community and life-
style. Restrictive covenants were used to ensure that future development
would conform to the existing character of the neighborhood.

Unfortunately, over time many of these residential communities have been
slowly transformed into more urban and overtly commercial areas.  The
practice of either ignoring or refusing to acknowledge the existence of
restrictive covenants has led to serious deterioration in the quality of
life for many of these communities. Therefore, it is incumbent on the
Department of Buildings to take steps to preserve communities that are
covered by restrictive covenants so that the character of these planned
communities is not lost to future generations.

 
PRIOR LEGISLATIVE HISTORY:

Previously Introduced.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4137 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4137
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2021
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to the filing of deeds containing restrictive covenants

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The administrative code of the city of New York is amended
 by adding a new section 27-106 to read as follows:
   § 27-106 REGISTRY OF DEEDS WITH RESTRICTIVE COVENANTS. (A) THE DEPART-
 MENT SHALL MAINTAIN A  REGISTRY  OF  ALL  DEEDS  CONTAINING  RESTRICTIVE
 COVENANTS  THAT ARE FILED WITH THE DEPARTMENT. ANY SUCH FILING SHALL NOT
 BE DEEMED AS  ACCEPTABLE  IN  LIEU  OF  ANY  OTHER  FILING  REQUIREMENTS
 MANDATED  OR  PERMITTED  UNDER ANY OTHER PROVISION OF LAW, RULE OR REGU-
 LATION. A DEED CONTAINING ONE OR MORE RESTRICTIVE COVENANTS MAY BE FILED
 WITH THE DEPARTMENT FOR INCLUSION IN THIS REGISTRY BY ANY OWNER OR HOME-
 OWNER ASSOCIATION WHOSE PROPERTY IS SUBJECT TO  A  RESTRICTIVE  COVENANT
 AND/OR  BY  OR  ON BEHALF OF A NEIGHBORHOOD ASSOCIATION OR CIVIC ASSOCI-
 ATION WHOSE AREA OF GEOGRAPHIC CONCERN, AS SET FORTH IN ITS  CERTIFICATE
 OF  INCORPORATION, CHARTER OR OTHER RELEVANT ORGANIZING DOCUMENT, ENCOM-
 PASSES THE PROPERTY THAT IS THE SUBJECT OF  SUCH  RESTRICTIVE  COVENANT.
 THE  FILING  SHALL  BE ACCOMPANIED BY A NOTARIZED REGISTRATION STATEMENT
 ACKNOWLEDGING THE AUTHENTICITY OF SUCH DEED. THIS REGISTRY SHALL BE MADE
 AVAILABLE TO THE PUBLIC DURING REGULAR BUSINESS HOURS.
   (B) PRIOR TO THE ISSUANCE OF ANY PERMIT, EMPLOYEES OF  THE  DEPARTMENT
 SHALL  SEARCH  THE  REGISTRY CREATED PURSUANT TO SUBDIVISION (A) OF THIS
 SECTION FOR THE PURPOSE OF DETERMINING WHETHER ANY DEED LISTED  IN  THIS
 REGISTRY CONTAINS ANY RESTRICTIVE COVENANT THAT WOULD BE VIOLATED BY THE
 ISSUANCE  OF  THE  REQUESTED PERMIT OR THE COMPLETION OF THE PROJECT FOR
 WHICH SUCH PERMIT IS SOUGHT. IF A  VIOLATION  OF  ANY  SUCH  RESTRICTIVE
 COVENANT  WOULD  OCCUR,  THEN THE DEPARTMENT SHALL NOT ISSUE SUCH PERMIT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03427-01-1

 S. 4137                             2
 
 EXCEPT AS AUTHORIZED BY ORDER OF A COURT OF COMPETENT JURISDICTION.  ANY
 OWNER  OR  HOMEOWNER  ASSOCIATION  WHOSE PROPERTY IS THE SUBJECT OF SUCH
 RESTRICTIVE COVENANT, OR ANY NEIGHBORHOOD ASSOCIATION OR  CIVIC  ASSOCI-
 ATION WHOSE AREA OF CONCERN ENCOMPASSES THE PROPERTY THAT IS THE SUBJECT
 OF  SUCH  RESTRICTIVE  COVENANT, SHALL BE BARRED FROM COLLECTING DAMAGES
 AGAINST THE CITY FOR THE FAILURE TO ENFORCE THE  RESTRICTIONS  CONTAINED
 IN  SUCH  RESTRICTIVE COVENANT IF SUCH RESTRICTIVE COVENANT HAS NOT BEEN
 FILED WITH THE DEPARTMENT. THE DEPARTMENT  SHALL  PROMULGATE  ANY  ADDI-
 TIONAL RULES FOR THE IMPLEMENTATION OF THIS SECTION.
   (C)  NOTHING  IN  THIS SECTION SHALL BE INTERPRETED TO LIMIT OR REDUCE
 THE RIGHTS OF ANY OWNER OR HOMEOWNER ASSOCIATION WHOSE AREA OF GEOGRAPH-
 IC CONCERN ENCOMPASSES THE PROPERTY THAT IS SUBJECT OF SUCH  RESTRICTIVE
 COVENANT  OR  COVENANTS TO INITIATE AND MAINTAIN LEGAL ACTION TO ENFORCE
 ANY SUCH COVENANT OR COVENANTS.
   § 2. This act shall take effect immediately.

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