S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  106--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Housing -- committee discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to amend the emergency tenant protection act of nineteen seven-
   ty-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 opening paragraph and clause (ii) of  subparagraph  (b)
 of  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 section 1 of part F of chap-
 ter 36 of the laws of 2019, are amended to read as follows:
   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  opportu-
 nity to be heard, to have collected an overcharge above the rent author-
 ized  for a housing accommodation subject to this act shall be liable to
 the tenant for a penalty equal to [three] FIVE times the amount of  such
 overcharge  FOR  A  FIRST OFFENSE AND TEN TIMES THE AMOUNT OF SUCH OVER-
 CHARGE FOR ANY SUBSEQUENT OFFENSE. If the owner establishes by a prepon-
 derance of the evidence that the  overcharge  was  neither  willful  nor
 attributable  to  [his]  THEIR 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00964-04-3
 A. 106--A                           2
 
 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 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
 deemed  to  be  the  rent  indicated  in the most recent reliable 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  state-
 ment) plus in each case any subsequent lawful increases and adjustments.
 The  division  of  housing and community renewal or a court of competent
 jurisdiction, in investigating complaints of overcharge and in determin-
 ing 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 deter-
 mining an overcharge shall be deemed to be the rent charged on the  date
 six  years  prior to the date of the initial registration of the housing
 accommodation (or, if the housing accommodation was subject to this  act
 for  less than six years, the initial legal regulated rent) plus in each
 case, any lawful increases and adjustments. Where the  rent  charged  on
 the  date six years prior to the date of the initial registration of the
 accommodation cannot be established, such rent shall be  established  by
 the division.
   (ii)  A  penalty  of  [three]  FIVE  times  the overcharge FOR A FIRST
 OFFENSE AND TEN TIMES THE AMOUNT OF SUCH OVERCHARGE FOR  ANY  SUBSEQUENT
 OFFENSE  shall  be  assessed upon all overcharges willfully collected by
 the owner starting six years before the complaint is filed.
   § 2. The opening paragraph and paragraph 2 of 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,  are  amended  to
 read as follows:
   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] FIVE times the
 amount of such overcharge FOR A FIRST OFFENSE AND TEN TIMES  THE  AMOUNT
 OF  SUCH OVERCHARGE FOR ANY SUBSEQUENT OFFENSE. 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 pursu-
 ant 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 and  served
 upon  the tenant six or more years prior to the most recent registration
 statement, (or, if more recently filed, the initial registration  state-
 A. 106--A                           3
 
 ment) plus in each case any subsequent lawful increases and adjustments.
 The  division  of  housing and community renewal or a court of competent
 jurisdiction, in investigating complaints of overcharge and in determin-
 ing  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 six years prior to the date of the initial
 registration of the housing accommodation (or, if the  housing  accommo-
 dation  was subject to this chapter for less than six years, the initial
 legal regulated rent) plus  in  each  case,  any  lawful  increases  and
 adjustments.  Where  the rent charged on the date six years prior to the
 date of the initial registration of the accommodation cannot  be  estab-
 lished, such rent shall be established by the division.
   (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]  FIVE times the overcharge FOR A FIRST OFFENSE AND TEN TIMES THE
 AMOUNT OF SUCH OVERCHARGE FOR ANY SUBSEQUENT OFFENSE shall  be  assessed
 upon all overcharges willfully collected by the owner starting six years
 before the complaint is filed.
   §  3.  This act shall take effect immediately; provided, however, that
 the amendments to section 26-516 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.