NY State Senate Bill 2021-S428

Senate Bill S428

2021-2022 Legislative Session

Prohibits the eviction of small commercial tenants in the city of New York without good cause

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities 1 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 cities 1
Jan 06, 2021	referred to cities 1

2021-S428 (ACTIVE) - Details

See Assembly Version of this Bill:: A3092
Current Committee:: Senate Cities 1
Law Section:: New York City Administrative Code
Laws Affected:: Add Title 22 Chapter 12 §§22-1201 - 22-1206, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7902, A10315
2023-2024: S1954, A2100

2021-S428 (ACTIVE) - Summary

Prohibits the eviction of small commercial tenants in the city of New York without good cause.

2021-S428 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S428

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to prohibiting the eviction of small commercial tenants in the
city of New York without good cause

 
SUMMARY OF PROVISIONS:

Section 1 names this bill the Stop The Outrageous Retail Evictions
(STORE) Act.

Section 2 adds a new Chapter 12 to the Administrative Code of the City
of New York entitled "Eviction Protections for Small Commercial Prem-
ises", which would apply to all premises having no more than 1,000
square feet of retail space that are occupied or used for the purpose of
offering or selling goods at retail in New York City. The bill would
prohibit landlords from removing any tenant from any small commercial
premises other than for good cause. The bill specifies what constitutes
good cause, including failure to pay rent (unless such failure is due to

an unconscionable rent increase or alleged violations of the lease by
the landlord); violation of a substantial obligation of tenancy; commit-
ting or permitting a nuisance or illegal activity on the premises;
unlawfully occupying the premises; unreasonably refusing the landlord
access to the premises; subletting the premises without the landlord's
knowledge or consent; an agency determination that the tenant is a gross
and persistent violator of tax laws or license obligations; or the land-
lord's good faith intent to demolish or substantially reconstruct the
premises or occupy the premises for his or her own business. The bill
would also give tenants recourse against a landlord who makes a fraudu-
lent statement regarding a proposed use of a premises.

The bill would provide that no action shall be maintainable and no judg-
ment of possession shall be entered for such premises unless the land-
lord complies with all applicable laws. It would also void any agree-
ments entered into by a tenant waiving his or her rights under the new
Chapter the bill would create.

Section 3 is a severability clause.

Section 4 provides the effective date of the bill.

 
JUSTIFICATION:

Small businesses provide enormous contributions to New York's economy,
making up 98 percent of all New York businesses and employing more than
half of New York's private sector workforce according to Empire State
Development.

However, it is becoming increasingly difficult for small business owners
to afford skyrocketing rent prices, in New York City in particular.

Treasured local establishments across the five boroughs that have been
in business for decades have been forced to close their doors due to
landlords' desire to drive out their smaller tenants and bring in chain
stores that can afford exorbitantly high rent payments. This negatively

affects the character of local communities, robbing them of the unique
services that small businesses provide.

In fact, New York City's data shows that commercial evictions increased
each year from 2017-2019, and there were a total of 3,900 commercial
evictions during that time period. When it comes to eviction
proceedings, small business owners are often at a disadvantage compared
to corporate landlords with high-powered attorneys, who are able to use
every tactic at their disposal to pressure these owners to vacate their
spaces.

Given the importance of small businesses to local communities and the
particular difficulties they face trying to grow and thrive in New York
City, we should do everything in our power to support them and give them
protections against eviction.

This bill establishes a legal framework prohibiting landlords from
evicting their small retail tenants except upon a court order entered in
an appropriate judicial action or proceeding in which the landlord has
established good cause to evict the tenant.

 
LEGISLATIVE HISTORY:

S.7902 of 2020 (Hoylman): Died in Cities A.10315-A of 2020 (Epstein):
Died in Judiciary

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to actions and
proceedings commenced on or after such effective date.

2021-S428 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    428
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  prohibiting  the eviction of small commercial tenants in
   the city of New York without good cause
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "Stop The
 Outrageous Retail Evictions Act" or the "STORE Act".
   § 2. Title 22 of the administrative code of the city of  New  York  is
 amended by adding a new chapter 12 to read as follows:
                                CHAPTER 12
            EVICTION PROTECTIONS FOR SMALL COMMERCIAL PREMISES
   §  22-1201  DEFINITIONS.  AS USED IN THIS CHAPTER, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "LANDLORD" SHALL MEAN ANY OWNER, LESSOR,  SUBLESSOR,  ASSIGNOR,  OR
 OTHER  PERSON RECEIVING OR ENTITLED TO RECEIVE RENT FOR THE OCCUPANCY OF
 ANY SMALL COMMERCIAL PREMISES, OR AN AGENT OF ANY OF THE FOREGOING.
   2. "RENT" SHALL MEAN ANY CONSIDERATION, INCLUDING ANY  BONUS,  BENEFIT
 OR GRATUITY DEMANDED OR RECEIVED BY A LANDLORD FOR OR IN CONNECTION WITH
 THE  POSSESSION,  USE OR OCCUPANCY OF A SMALL COMMERCIAL PREMISES OR THE
 EXECUTION OR TRANSFER OF A LEASE FOR SUCH SMALL COMMERCIAL PREMISES.
   3. "SMALL COMMERCIAL PREMISES" SHALL MEAN A PREMISES THAT IS  OCCUPIED
 OR  USED,  OR  COULD BE OCCUPIED OR USED, FOR THE PURPOSE OF OFFERING OR
 SELLING GOODS AT RETAIL AND HAS NO MORE THAN ONE THOUSAND SQUARE FEET OF
 RETAIL SPACE.
   4. "TENANT" SHALL MEAN A PERSON OR ENTITY LAWFULLY OCCUPYING  A  SMALL
 COMMERCIAL PREMISES PURSUANT TO A LEASE OR OTHER RENTAL AGREEMENT.
   § 22-1202 SCOPE. THIS CHAPTER SHALL APPLY ONLY TO ALL SMALL COMMERCIAL
 PREMISES IN THE CITY OF NEW YORK.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD02233-01-1

 S. 428                              2
 
   §  22-1203  NECESSITY  FOR GOOD CAUSE. NO LANDLORD SHALL, BY ACTION TO
 EVICT OR TO RECOVER POSSESSION, BY EXCLUSION FROM POSSESSION, BY FAILURE
 TO RENEW ANY LEASE, OR OTHERWISE,  REMOVE  ANY  TENANT  FROM  ANY  SMALL
 COMMERCIAL PREMISES COVERED BY THIS CHAPTER EXCEPT FOR GOOD CAUSE PURSU-
 ANT TO SECTION 22-1204 OF THIS CHAPTER.
   §  22-1204 GROUNDS FOR REMOVAL OF TENANTS. 1. NO LANDLORD SHALL REMOVE
 A TENANT FROM ANY SMALL COMMERCIAL PREMISES, OR ATTEMPT SUCH REMOVAL  OR
 EXCLUSION  FROM POSSESSION, NOTWITHSTANDING THAT THE TENANT HAS NO WRIT-
 TEN LEASE OR THAT THE LEASE OR OTHER RENTAL  AGREEMENT  HAS  EXPIRED  OR
 OTHERWISE  TERMINATED,  EXCEPT UPON ORDER OF A COURT OF COMPETENT JURIS-
 DICTION ENTERED IN AN APPROPRIATE JUDICIAL ACTION OR PROCEEDING IN WHICH
 THE PETITIONER OR PLAINTIFF HAS ESTABLISHED ONE OF THE FOLLOWING GROUNDS
 AS GOOD CAUSE FOR REMOVAL OR EVICTION:
   (A) THE TENANT HAS FAILED TO PAY RENT DUE AND OWING, PROVIDED THAT THE
 RENT DUE AND OWING, OR ANY PART THEREOF, IS NOT THE RESULT OF:
   (I) A RENT INCREASE WHICH IS UNCONSCIONABLE OR IMPOSED FOR THE PURPOSE
 OF CIRCUMVENTING THE INTENT OF THIS CHAPTER. IN DETERMINING WHETHER  ALL
 OR  PART  OF  THE  RENT DUE AND OWING IS THE RESULT OF AN UNCONSCIONABLE
 RENT INCREASE, IT SHALL BE A REBUTTABLE PRESUMPTION THAT THE RENT FOR  A
 SMALL  COMMERCIAL  PREMISES  IS  UNCONSCIONABLE  IF  SAID  RENT HAS BEEN
 INCREASED IN ANY CALENDAR YEAR BY A PERCENTAGE EXCEEDING  ONE  AND  ONE-
 HALF  TIMES THE ANNUAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR
 THE CITY OF NEW YORK, AS ESTABLISHED IN THE AUGUST PRECEDING THE  CALEN-
 DAR YEAR IN QUESTION; OR
   (II)  THE  WITHHOLDING  OF  RENTAL  PAYMENTS  BY THE TENANT DUE TO THE
 ALLEGED VIOLATIONS OF THE LEASE OR RENTAL AGREEMENT BY THE LANDLORD.
   (B) THE TENANT IS VIOLATING A SUBSTANTIAL OBLIGATION  OF  HIS  OR  HER
 TENANCY,  OTHER  THAN  THE  OBLIGATION  TO SURRENDER POSSESSION, AND HAS
 FAILED TO CURE SUCH  VIOLATION  WITHIN  THIRTY  DAYS  FOLLOWING  WRITTEN
 NOTICE TO CURE THE VIOLATION BY THE LANDLORD, PROVIDED HOWEVER, THAT THE
 OBLIGATION  OF  TENANCY FOR WHICH A VIOLATION IS CLAIMED WAS NOT IMPOSED
 FOR THE PURPOSE OF CIRCUMVENTING THE INTENT OF THIS CHAPTER.
   (C) THE TENANT IS COMMITTING OR PERMITTING A  NUISANCE  IN  THE  SMALL
 COMMERCIAL PREMISES, OR IS MALICIOUSLY OR BY REASON OF NEGLIGENCE DAMAG-
 ING THE SMALL COMMERCIAL PREMISES; OR THE TENANT'S CONDUCT IS SUCH AS TO
 INTERFERE  WITH THE COMFORT OF OTHER TENANTS OR OCCUPANTS OF THE SAME OR
 ADJACENT BUILDINGS OR STRUCTURES.
   (D) OCCUPANCY OF THE SMALL COMMERCIAL PREMISES BY  THE  TENANT  IS  IN
 VIOLATION OF OR CAUSES A VIOLATION OF LAW AND THE LANDLORD IS SUBJECT TO
 CIVIL OR CRIMINAL PENALTIES THEREFOR; PROVIDED HOWEVER THAT AN AGENCY OF
 THE  STATE  OR  MUNICIPALITY  HAVING  JURISDICTION  HAS  ISSUED AN ORDER
 REQUIRING THE TENANT TO VACATE THE SMALL COMMERCIAL PREMISES.  NO TENANT
 SHALL BE REMOVED FROM POSSESSION OF A SMALL COMMERCIAL PREMISES ON  SUCH
 GROUND  UNLESS  THE  COURT  FINDS  THAT THE CURE OF THE VIOLATION OF LAW
 REQUIRES THE REMOVAL OF THE TENANT AND THAT THE LANDLORD DID NOT THROUGH
 NEGLECT OR DELIBERATE ACTION OR FAILURE  TO  ACT  CREATE  THE  CONDITION
 NECESSITATING THE VACATE ORDER. IN INSTANCES WHERE THE LANDLORD DOES NOT
 UNDERTAKE  TO  CURE  CONDITIONS OF THE SMALL COMMERCIAL PREMISES CAUSING
 SUCH VIOLATION OF THE LAW, THE TENANT SHALL HAVE THE  RIGHT  TO  PAY  OR
 SECURE  PAYMENT  IN  A  MANNER  SATISFACTORY  TO THE COURT, TO CURE SUCH
 VIOLATION PROVIDED THAT ANY TENANT EXPENDITURES SHALL BE APPLIED AGAINST
 RENT TO WHICH THE LANDLORD IS ENTITLED. IN INSTANCES WHERE REMOVAL OF  A
 TENANT  IS  ABSOLUTELY  ESSENTIAL TO THE TENANT'S HEALTH AND SAFETY, THE
 REMOVAL OF THE TENANT SHALL BE WITHOUT PREJUDICE TO ANY LEASEHOLD INTER-
 EST OR OTHER RIGHT OF OCCUPANCY THE TENANT MAY HAVE AND THE TENANT SHALL
 BE ENTITLED TO RESUME POSSESSION AT SUCH TIME AS  THE  DANGEROUS  CONDI-

 S. 428                              3

 TIONS  HAVE  BEEN  REMOVED.   NOTHING HEREIN SHALL ABROGATE OR OTHERWISE
 LIMIT THE RIGHT OF A TENANT TO BRING  AN  ACTION  FOR  MONETARY  DAMAGES
 AGAINST  THE  LANDLORD  TO  COMPEL  COMPLIANCE  BY THE LANDLORD WITH ALL
 APPLICABLE STATE OR MUNICIPAL LAWS OR HOUSING CODES.
   (E) THE TENANT CONDUCTS OR PERMITS ANY FORM OF ILLEGAL ACTIVITY ON THE
 PREMISES.
   (F)  THE  TENANT  HAS  UNREASONABLY REFUSED THE LANDLORD ACCESS TO THE
 SMALL COMMERCIAL PREMISES FOR THE PURPOSE OF MAKING NECESSARY REPAIRS OR
 IMPROVEMENTS REQUIRED BY LAW OR FOR THE PURPOSE  OF  SHOWING  THE  SMALL
 COMMERCIAL  PREMISES  TO  A  PROSPECTIVE  PURCHASER,  MORTGAGEE OR OTHER
 PERSON HAVING A LEGITIMATE INTEREST THEREIN.
   (G) THE CURRENT TENANCY WAS CREATED BY THE  SUBLETTING  OF  THE  SMALL
 COMMERCIAL  PREMISES,  WHEREBY THE PRIME TENANT DID NOT NOTIFY THE LAND-
 LORD OF THE SUBTENANT'S EXISTENCE AND DID NOT OBTAIN THE WRITTEN CONSENT
 OF THE LANDLORD TO SUBLET THE SMALL COMMERCIAL PREMISES. THIS GROUND  IS
 VOID  IF  THE  LANDLORD  AND  TENANT  HAD  AGREED  IN THE LEASE TO ALLOW
 SUBLEASING RIGHTS WITHOUT THE CONSENT OF  THE  LANDLORD  AND  ALL  OBLI-
 GATIONS OF THE PRIME TENANT ON THE ISSUE WERE IN COMPLIANCE.
   (H)  IT  HAS BEEN DETERMINED BY AN AGENCY OF THE STATE OR MUNICIPALITY
 HAVING JURISDICTION OR BY A CIVIL COURT OF COMPETENT  JURISDICTION  THAT
 THE TENANT IS A GROSS AND PERSISTENT VIOLATOR OF NEW YORK CITY TAX LAWS,
 OF  ANY  LICENSE  OBLIGATIONS RELATED TO THE USE OF THE SMALL COMMERCIAL
 PREMISES OR OF ANY LAWS OF THE CITY OF NEW YORK.
   (I) UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD INTENDS,
 IN GOOD FAITH,  TO  DEMOLISH  OR  SUBSTANTIALLY  RECONSTRUCT  THE  SMALL
 COMMERCIAL  PREMISES  OR  A  SUBSTANTIAL  PART  THEREOF, OR TO CARRY OUT
 SUBSTANTIAL WORK OR CONSTRUCTION ON THE COMMERCIAL PREMISES OR  SUBSTAN-
 TIAL  PART  THEREOF  WHICH  HE  OR  SHE  COULD NOT REASONABLY DO WITHOUT
 OBTAINING POSSESSION OF THE  SMALL  COMMERCIAL  PREMISES.  THE  LANDLORD
 SHALL  NOTIFY  THE TENANT OF HIS OR HER DECISION TO REOCCUPY THE COMMER-
 CIAL PREMISES AT LEAST ONE YEAR PRIOR TO THE TERMINATION OF THE TENANT'S
 CURRENT LEASE OR RENTAL AGREEMENT.
   (J) UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD  INTENDS
 TO OCCUPY THE SMALL COMMERCIAL PREMISES IN ORDER TO CARRY OUT HIS OR HER
 OWN BUSINESS, WHICH CANNOT BE THE SAME TYPE OF BUSINESS THAT THE CURRENT
 TENANT  IS OPERATING, UNLESS THE LANDLORD COMPENSATES THE TENANT AT FAIR
 MARKET VALUE AS DETERMINED BY AN ARBITRATOR AS RESTITUTION FOR THE  LOSS
 OF  SUCH  TENANT'S BUSINESS. THE LANDLORD SHALL NOTIFY THE TENANT OF HIS
 OR HER DECISION TO REOCCUPY THE PREMISES AT  LEAST  ONE  HUNDRED  EIGHTY
 DAYS PRIOR TO THE TERMINATION OF THE TENANT'S CURRENT LEASE.
   2.  A  TENANT  REQUIRED  TO  SURRENDER  A SMALL COMMERCIAL PREMISES BY
 VIRTUE OF THE OPERATION OF PARAGRAPH (I) OR (J) OF  SUBDIVISION  ONE  OF
 THIS  SECTION  SHALL  HAVE  A  CAUSE OF ACTION IN ANY COURT OF COMPETENT
 JURISDICTION FOR DAMAGES AND DECLARATORY AND INJUNCTIVE RELIEF AGAINST A
 LANDLORD OR PURCHASER OF THE PREMISES WHO MAKES A  FRAUDULENT  STATEMENT
 REGARDING  A  PROPOSED  USE OF THE PREMISES. IN ANY ACTION OR PROCEEDING
 BROUGHT PURSUANT TO THIS PROVISION A PREVAILING TENANT SHALL BE ENTITLED
 TO RECOVERY OF ACTUAL DAMAGES, AND REASONABLE ATTORNEYS' FEES.
   § 22-1205 PRESERVATION OF EXISTING  REQUIREMENTS  OF  LAW.  NO  ACTION
 SHALL BE MAINTAINABLE AND NO JUDGMENT OF POSSESSION SHALL BE ENTERED FOR
 SMALL  COMMERCIAL  PREMISES PURSUANT TO SECTION 22-1204 OF THIS CHAPTER,
 UNLESS THE LANDLORD HAS  COMPLIED  WITH  ANY  AND  ALL  APPLICABLE  LAWS
 GOVERNING SUCH ACTION OR PROCEEDING.
   §  22-1206 WAIVER OF RIGHTS VOID. ANY AGREEMENT BY A TENANT HERETOFORE
 OR HEREINAFTER ENTERED INTO IN A WRITTEN LEASE OR OTHER RENTAL AGREEMENT

 S. 428                              4
 
 WAIVING OR MODIFYING HIS OR HER RIGHTS AS  SET  FORTH  IN  THIS  CHAPTER
 SHALL BE VOID AS CONTRARY TO PUBLIC POLICY.
   § 3. 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 and 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.
   § 4. This act shall take effect immediately and shall apply to actions
 and proceedings commenced on or after such effective date.

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