S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4255
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 13, 2023
                                ___________
 
 Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
   Committee on Cities
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation to enacting the "New York city small business rent stabiliza-
   tion act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York city small business rent stabilization act".
   §  2.  Title  22 of the administrative code of the city of New York is
 amended by adding a new chapter 13 to read as follows:
                                CHAPTER 13
                       COMMERCIAL RENT STABILIZATION
   § 22-1301 APPLICATION. THIS CHAPTER APPLIES TO ALL  COMMERCIAL  SPACES
 WITH  A  LEASE  OR  OTHER RENTAL AGREEMENT THAT EXPIRES ON OR AFTER JULY
 FIRST, TWO THOUSAND TWENTY-THREE, WHETHER OR NOT SUCH  LEASE  OR  RENTAL
 AGREEMENT  WAS  IN EFFECT ON SUCH DATE. THIS CHAPTER SHALL APPLY ONLY TO
 ALL COMMERCIAL LEASE RENEWALS FOR COMMERCIAL PREMISES. ON  ANY  OCCASION
 WHEREIN  A  LANDLORD AND TENANT ARE REQUIRED TO NEGOTIATE THE TERMS OF A
 LEASE RENEWAL FOR COMMERCIAL USES SUCH PROVISIONS OF THIS CHAPTER  SHALL
 APPLY.  SUCH  PROVISIONS OF THIS CHAPTER SHALL APPLY TO ANY LANDLORD AND
 CURRENT TENANT WHOSE LEASE EXPIRED ON OR AFTER JULY FIRST, TWO  THOUSAND
 TWENTY-THREE.
   §  22-1302  DEFINITIONS.  AS USED IN THIS CHAPTER, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT REQUIRES OTHERWISE:
   A. "ADMINISTERING AGENCY" SHALL MEAN ANY CITY AGENCY, OFFICE,  DEPART-
 MENT,  DIVISION,  BUREAU  OR  INSTITUTION OF GOVERNMENT, THE EXPENSES OF
 WHICH ARE PAID IN WHOLE OR IN PART FROM THE CITY TREASURY, AS THE  MAYOR
 SHALL  DESIGNATE  OR ESTABLISH TO IMPLEMENT THE PROVISIONS OF THIS CHAP-
 TER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08988-01-3
 A. 4255                             2
              

 
   B. "AT-WILL TENANT" SHALL MEAN A TENANT, SUBTENANT, LESSEE, SUBLESSEE,
 OR ANY OTHER PERSONS LAWFULLY ENTITLED TO USE OR OCCUPY  ANY  COMMERCIAL
 PREMISES WITHOUT A WRITTEN LEASE OR OTHER RENTAL AGREEMENT, WHO HAS PAID
 RENT TO A LANDLORD FOR AT LEAST SIX MONTHS.
   C. "BOARD" SHALL MEAN THE COMMERCIAL RENT GUIDELINES BOARD ESTABLISHED
 BY SUBDIVISION A OF SECTION 22-1303 OF THIS CHAPTER.
   D.  "CHAIN  BUSINESS"  SHALL  MEAN  AN ESTABLISHMENT THAT IS PART OF A
 GROUP OF ESTABLISHMENTS THAT SHARE A COMMON LANDLORD  OR  PRINCIPAL  WHO
 OWNS AT LEAST THIRTY PERCENT OF EACH ESTABLISHMENT WHERE SUCH ESTABLISH-
 MENTS:
   (1) ENGAGE IN THE SAME BUSINESS; OR
   (2) OPERATE PURSUANT TO A FRANCHISE AGREEMENT WITH THE SAME FRANCHISOR
 AS  DEFINED  IN  SECTION  SIX HUNDRED EIGHTY-ONE OF THE GENERAL BUSINESS
 LAW.
   E. "COMMERCIAL SPACE" SHALL MEAN A SPACE USED OR OCCUPIED FOR  NON-RE-
 SIDENTIAL  PURPOSES PURSUANT TO A VALID COMMERCIAL LEASE OR OTHER RENTAL
 AGREEMENT. SUCH TERM INCLUDES ONLY RETAIL STORES, PROFESSIONAL  OFFICES,
 SERVICE OFFICES OR OTHER OFFICES OF TEN THOUSAND SQUARE FEET OR LESS AND
 MANUFACTURING  ESTABLISHMENTS  OR  ART AND/OR CULTURAL ESTABLISHMENTS OF
 TWENTY-FIVE THOUSAND SQUARE FEET OR LESS. SUCH TERM DOES NOT  INCLUDE  A
 BUILDING OWNED BY:
   (1) A NON-PROFIT ENTITY WHERE:
   (I) MORE THAN FIFTY PERCENT OF BUILDING UNITS ARE RENT REGULATED; OR
   (II)  MORE THAN THIRTY PERCENT OF BUILDING UNITS ARE BELOW FAIR MARKET
 RENT RATE AND ARE RESTRICTED INCOME UNITS; OR
   (2) A HOUSING DEVELOPMENT FUND CORPORATION PURSUANT TO ARTICLE TWO  OR
 ELEVEN  OF  THE PRIVATE HOUSING FINANCE LAW, INCLUDING BUILDINGS USED AS
 MITCHELL-LAMA HOUSING AND ANY OTHER RESTRICTED INCOME CO-OP HOUSING.
   F. "COMMISSIONER" SHALL MEAN THE HEAD OF THE ADMINISTERING AGENCY.
   G. "LANDLORD" SHALL MEAN ANY OWNER, LESSOR, SUBLESSOR OR OTHER  PERSON
 ENTITLED  TO  RECEIVE  RENT  FOR  THE USE OR OCCUPANCY OF ANY COMMERCIAL
 PREMISES, OR AN AGENT THEREOF.
   H. "PASS-ALONG" SHALL MEAN ANY TAXES, SEWER, WATER OR UTILITY FEE,  OR
 OPERATING  CHARGES APPORTIONED TO A TENANT IN CONNECTION WITH THE USE OR
 OCCUPANCY OF ANY COMMERCIAL SPACE.
   I. "RENT" SHALL MEAN ANY CONSIDERATION, INCLUDING BUT NOT  LIMITED  TO
 PASS-ALONGS,  RECEIVED  BY  THE  LANDLORD  IN CONNECTION WITH THE USE OR
 OCCUPANCY OF ANY COMMERCIAL SPACE.
   J. "SERVICES" SHALL MEAN THOSE FACILITIES WHICH ENHANCE THE USE OF THE
 COMMERCIAL PREMISES, INCLUDING, BUT NOT  LIMITED  TO,  REPAIRS,  MAINTE-
 NANCE,  PAINTING, HEAT, HOT AND COLD WATER, UTILITIES, ELEVATOR SERVICE,
 SECURITY DEVICES AND PATROLS, FURNISHINGS, STORAGE, JANITORIAL AND LAND-
 SCAPING SERVICES, REFUSE REMOVAL, INSURANCE PROTECTION,  PARKING  SPACES
 AND  FACILITIES  IN  COMMON AREAS OF THE BUILDING OR PARCEL IN WHICH THE
 RENTAL UNIT IS LOCATED.
   K. "TENANT" SHALL MEAN A TENANT, SUBTENANT, LESSEE, SUBLESSEE, OR  ANY
 OTHER  PERSONS  LAWFULLY  ENTITLED TO USE OR OCCUPY ANY COMMERCIAL PREM-
 ISES.
   § 22-1303 COMMERCIAL RENT  GUIDELINES  BOARD.  A.  THERE  SHALL  BE  A
 COMMERCIAL RENT GUIDELINES BOARD CONSISTING OF NINE MEMBERS APPOINTED BY
 THE MAYOR AS FOLLOWS:
   (1) ONE PUBLIC MEMBER TO SERVE AS THE CHAIRPERSON OF THE BOARD;
   (2)  TWO  MEMBERS  REPRESENTING COMMERCIAL TENANTS WHICH ARE NOT CHAIN
 BUSINESSES;
   (3) TWO MEMBERS REPRESENTING COMMERCIAL LANDLORDS; AND
   (4) FOUR PUBLIC MEMBERS.
 A. 4255                             3
 
   B. THE MEMBERS OF THE BOARD, EXCEPT THE CHAIRPERSON, SHALL SERVE STAG-
 GERED  TERMS  OF  TWO  YEARS.  FOUR  MEMBERS  OF  THE  BOARD  ORIGINALLY
 APPOINTED,  COMPRISING  ONE  MEMBER  REPRESENTING  TENANTS,  ONE  MEMBER
 REPRESENTING LANDLORDS AND TWO PUBLIC MEMBERS, SHALL SERVE UNTIL JANUARY
 FIRST,   TWO  THOUSAND  TWENTY-SIX.  THE  OTHER  MEMBERS  OF  THE  BOARD
 ORIGINALLY APPOINTED, EXCLUDING THE CHAIRPERSON, SHALL SERVE UNTIL JANU-
 ARY FIRST, TWO THOUSAND TWENTY-SEVEN.   THEREAFTER,  ALL  MEMBERS  SHALL
 SERVE  TWO-YEAR  TERMS  ON  THE  BOARD  UNTIL THEIR SUCCESSORS HAVE BEEN
 APPOINTED AND QUALIFIED, EXCEPT THE CHAIRPERSON, WHO SHALL SERVE AT  THE
 PLEASURE OF THE MAYOR.
   C.  THE MAYOR SHALL FILL ANY VACANCY THAT MAY OCCUR IN THE SAME MANNER
 AS THE ORIGINAL APPOINTMENT. A MEMBER  OF  THE  BOARD,  OTHER  THAN  THE
 CHAIRPERSON,  MAY ONLY BE REMOVED BY THE MAYOR FOR CAUSE AFTER AN OPPOR-
 TUNITY TO BE HEARD IN PERSON OR BY COUNSEL,  IN  THE  MEMBER'S  DEFENSE,
 UPON AT LEAST TEN DAYS WRITTEN NOTICE.
   D.  THE  CHAIRPERSON  SHALL BE THE CHIEF ADMINISTRATIVE OFFICER OF THE
 BOARD AND SHALL HAVE THE AUTHORITY TO EMPLOY, ASSIGN AND  SUPERVISE  THE
 MEMBERS  OF  THE BOARD AND ENTER INTO CONTRACTS FOR CONSULTANT SERVICES.
 THE COMMISSIONER SHALL COOPERATE WITH THE BOARD AND MAY ASSIGN PERSONNEL
 AND PERFORM SUCH SERVICES IN CONNECTION WITH THE DUTIES OF THE BOARD  AS
 MAY REASONABLY BE REQUIRED BY THE CHAIRPERSON.
   E.  THE  MEMBERS OF THE BOARD SHALL BE COMPENSATED ON A PER DIEM BASIS
 FOR NO MORE THAN FIFTY DAYS PER YEAR AT A RATE TO BE DETERMINED  BY  THE
 COMMISSIONER,  AND  THE  CHAIRPERSON  SHALL BE COMPENSATED ON A PER DIEM
 BASIS FOR NO MORE THAN ONE HUNDRED DAYS PER YEAR AT A RATE TO BE  DETER-
 MINED BY THE COMMISSIONER.
   F.  THE  BOARD  SHALL ESTABLISH INITIAL GUIDELINES FOR COMMERCIAL RENT
 ADJUSTMENTS BY THE FIRST OF JULY NEXT SUCCEEDING APPOINTMENT OF THE LAST
 MEMBER OF THE BOARD.   THEREAFTER,  THE  BOARD  SHALL  ESTABLISH  ANNUAL
 GUIDELINES TO BE FILED IN ACCORDANCE WITH SUBDIVISION G OF THIS SECTION.
 IN  DETERMINING WHETHER TO ADJUST RENTS FOR COMMERCIAL SPACES SUBJECT TO
 THE COMMERCIAL RENT STABILIZATION PROVISIONS OF THIS CHAPTER, THE  BOARD
 SHALL CONSIDER, AMONG OTHER THINGS:
   (1)  THE  ECONOMIC CONDITION OF THE COMMERCIAL REAL ESTATE INDUSTRY IN
 THE COMMUNITY BOARD DISTRICT, INCLUDING SUCH FACTORS AS:
   (I) COMMERCIAL REAL ESTATE TAXES AND SEWER AND WATER RATES;
   (II) GROSS OPERATING AND MAINTENANCE COSTS, INCLUDING BUT NOT  LIMITED
 TO INSURANCE RATES, GOVERNMENTAL FEES, FUEL AND LABOR COSTS;
   (III)  COSTS  AND AVAILABILITY OF FINANCING, INCLUDING EFFECTIVE RATES
 OF INTEREST; AND
   (IV) THE OVERALL SUPPLY  OF  COMMERCIAL  SPACES  AND  OVERALL  VACANCY
 RATES;
   (2)  RELEVANT  DATA  FROM  THE  CURRENT AND PROJECTED MARKET VALUES OF
 COMMERCIAL RENTALS IN THE COMMUNITY BOARD DISTRICT;
   (3) THE SOCIOECONOMIC AND DEMOGRAPHIC CHANGES IN EACH COMMUNITY  BOARD
 DISTRICT  BASED  ON  THE  MOST  RECENT AVAILABLE DATA, INCLUDING BUT NOT
 LIMITED TO CHANGES IN:
   (I) THE MEDIAN INCOME LEVEL;
   (II) EDUCATION;
   (III) RACE;
   (IV) ETHNICITY; AND
   (V) HOME OWNERSHIP; AND
   (4) ANY OTHER RELEVANT DATA AVAILABLE TO THE BOARD.
   G. NOT LATER THAN JULY FIRST OF EACH YEAR, THE BOARD SHALL  FILE  WITH
 THE CITY CLERK ITS GUIDELINES FOR THE PRECEDING CALENDAR YEAR, AND SHALL
 ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXIMUM RATE OR RATES OF
 A. 4255                             4
 
 RENT  ADJUSTMENT,  IF  ANY,  FOR  ALL  COMMERCIAL  SPACES SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER AUTHORIZED FOR LEASES OR OTHER RENTAL  AGREE-
 MENTS  COMMENCING  ON  THE  FIRST  OF  OCTOBER NEXT SUCCEEDING OR WITHIN
 TWELVE  MONTHS  THEREAFTER.    SUCH  GUIDELINES  AND  STATEMENT SHALL BE
 PUBLISHED IN THE CITY RECORD.
   H. PRIOR TO THE ANNUAL ADJUSTMENT OF THE LEVEL OF RENTS  PROVIDED  FOR
 UNDER  SUBDIVISION  F OF THIS SECTION, THE BOARD SHALL HOLD AT LEAST TWO
 PUBLIC HEARINGS FOR THE PURPOSE OF COLLECTING  INFORMATION  RELATING  TO
 ALL  FACTORS  SET  FORTH IN SUBDIVISION F OF THIS SECTION, AND ANY OTHER
 RELEVANT INFORMATION AS MAY BE NECESSARY  FOR  ESTABLISHING  THE  ANNUAL
 ADJUSTMENT  GUIDELINES. THE BOARD SHALL PROVIDE NOTICE OF THE DATE, TIME
 AND LOCATION AND A SUMMARY OF THE SUBJECT MATTER OF THE PUBLIC HEARINGS,
 TO BE PUBLISHED IN THE CITY RECORD DAILY FOR THE PERIOD BEGINNING  EIGHT
 DAYS PRIOR TO THE HEARING DATE, AND AT LEAST ONCE IN ONE OR MORE NEWSPA-
 PERS  OF  GENERAL  CIRCULATION AT LEAST EIGHT DAYS IMMEDIATELY PRECEDING
 SUCH HEARING DATE.
   I. MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE THAN
 ONCE ANNUALLY FOR ANY COMMERCIAL SPACE SUBJECT TO THE PROVISIONS OF THIS
 CHAPTER. ONCE ESTABLISHED, NO SUCH RATE SHALL, WITHIN THE ONE-YEAR PERI-
 OD, BE ADJUSTED BY ANY  SURCHARGE,  SUPPLEMENTARY  ADJUSTMENT  OR  OTHER
 MODIFICATION EXCEPT AS PROVIDED IN SECTION 22-1308 OF THIS CHAPTER.
   §  22-1304  STABILIZATION  PROVISIONS.  A. UPON RENEWAL OF A LEASE FOR
 COMMERCIAL SPACE, THE RENT CHARGED FOR THE FIRST YEAR OF THE  NEW  LEASE
 SHALL  NOT  EXCEED  THE  INITIAL LEGAL REGULATED RENT OR LEGAL REGULATED
 RENT ADJUSTED PURSUANT TO SECTION 22-1308 OF THIS CHAPTER UNTIL THE  END
 OF  ANY  LEASE OR OTHER RENTAL AGREEMENT IN EFFECT ON THE EFFECTIVE DATE
 OF THIS CHAPTER UNTIL SUCH TIME AS  A  DIFFERENT  LEGAL  REGULATED  RENT
 SHALL  BE  AUTHORIZED PURSUANT TO GUIDELINES ADOPTED BY THE BOARD ESTAB-
 LISHED UNDER SECTION 22-1303 OF THIS CHAPTER. NO LANDLORD SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER SHALL CHARGE OR COLLECT ANY RENT THAT EXCEEDS
 THE INITIAL LEGAL REGULATED RENT OR LEGAL REGULATED RENT ADJUSTED PURSU-
 ANT TO SECTION 22-1308 OF THIS CHAPTER UNTIL THE END  OF  ANY  LEASE  OR
 OTHER  RENTAL AGREEMENT IN EFFECT ON THE EFFECTIVE DATE OF THIS CHAPTER,
 UNTIL SUCH TIME AS A DIFFERENT LEGAL REGULATED RENT HAS BEEN  AUTHORIZED
 PURSUANT TO GUIDELINES ADOPTED BY THE BOARD. FOR ANY LEASE EXCEEDING ONE
 YEAR,  THE  RENT  CHARGED  FOR  ANY SUBSEQUENT YEAR SHALL NOT EXCEED THE
 LEGAL REGULATED RENT AS AUTHORIZED PURSUANT TO THE  MOST  RECENT  GUIDE-
 LINES  ADOPTED  BY  THE BOARD. IF THE RENT CHARGED FOR THE FIRST YEAR OF
 THE NEW LEASE IS LESS THAN THE INITIAL LEGAL REGULATED RENT OR THE LEGAL
 REGULATED RENT ADJUSTED PURSUANT TO SECTION 22-1308 OF THIS CHAPTER, THE
 RENT CHARGED FOR ANY SUBSEQUENT YEAR SHALL NOT EXCEED THE  FIRST  YEAR'S
 RENT  ADJUSTED BY THE RATE AUTHORIZED PURSUANT TO THE MOST RECENT GUIDE-
 LINES ADOPTED BY THE BOARD.
   B. THE INITIAL REGULATED RENT FOR A COMMERCIAL SPACE  SUBJECT  TO  THE
 PROVISIONS  OF  THIS  CHAPTER  IS THE RENT CHARGED IN THE LEASE OR OTHER
 RENTAL AGREEMENT FOR SUCH COMMERCIAL SPACE IN EFFECT  ON  THE  EFFECTIVE
 DATE OF THIS CHAPTER.
   C.  THE  INITIAL  REGULATED RENT FOR A COMMERCIAL SPACE SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER, THAT IS NOT SUBJECT  TO  A  LEASE  OR  OTHER
 RENTAL  AGREEMENT  ON  THE  EFFECTIVE DATE OF THIS CHAPTER, SHALL BE THE
 RENT CHARGED IN THE FIRST LEASE  OR  OTHER  RENTAL  AGREEMENT  FOR  SUCH
 COMMERCIAL SPACE THAT BECOMES EFFECTIVE AFTER THE EFFECTIVE DATE OF THIS
 CHAPTER,  PROVIDED  THAT  SUCH  RENT  SHALL NOT INCLUDE ANY PASS-ALONGS.
 HOWEVER, IF A CLAIM ALLEGING COMMERCIAL TENANT  HARASSMENT  PURSUANT  TO
 CHAPTER NINE OF THIS TITLE IS BROUGHT AGAINST A LANDLORD BY THE PREVIOUS
 TENANT  AS THE MEANS BY WHICH THE VACANCY WAS EFFECTED AND SUCH PREVIOUS
 A. 4255                             5
 
 TENANT'S CLAIM IS UPHELD BY A  COURT  OF  COMPETENT  JURISDICTION,  SUCH
 LANDLORD  SHALL  BE  LIABLE FOR DAMAGES UP TO TEN TIMES THE PROPOSED NEW
 LEASE'S MONTHLY RENT OR FIFTY THOUSAND DOLLARS, WHICHEVER IS GREATER, TO
 BE  PAYABLE TO THE PREVIOUS TENANT, IN ADDITION TO CONSEQUENTIAL DAMAGES
 AND ANY OTHER REMEDY AVAILABLE AT LAW OR EQUITY.
   D. UPON A FINDING OF COMMERCIAL TENANT HARASSMENT PURSUANT TO  CHAPTER
 NINE  OF THIS TITLE, THE RENT FOR THE NEW TENANT SHALL BE NO HIGHER THAN
 THE RENT THAT COULD HAVE BEEN CHARGED TO THE PREVIOUS TENANT PURSUANT TO
 SUBDIVISION A OF THIS SECTION, RETROACTIVE TO THE BEGINNING OF  THE  NEW
 TENANCY.  ALL  OTHER  TERMS AND CONDITIONS OF THE LEASE SHALL CONFORM TO
 THE PROVISIONS OF SUBDIVISION A OF THIS SECTION.
   E. IF A TENANT IS AN AT-WILL TENANT, SUCH  TENANT  HAS  THE  RIGHT  TO
 REQUEST  A  WRITTEN LEASE AGREEMENT THAT SHALL CONFORM TO THE PROVISIONS
 OF SUBDIVISION A OF THIS SECTION AND BE A MONTHLY RENT EQUIVALENT TO THE
 AMOUNT SUCH TENANT IS PAYING AT THE TIME OF SUCH REQUEST.  THE  LANDLORD
 OF  AN  AT-WILL TENANT SHALL PROVIDE A WRITTEN LEASE OFFER WITHIN NINETY
 DAYS OF RECEIVING SUCH A REQUEST FOR A WRITTEN LEASE. A  LANDLORD  SHALL
 ONLY  BE  ABLE  TO REFUSE TO PROVIDE A WRITTEN LEASE OR EVICT AN AT-WILL
 TENANT BASED ON THE PROVISIONS UNDER SECTION 22-1310  OF  THIS  CHAPTER,
 EXCEPT FOR THE PROVISION SET FORTH IN PARAGRAPH TWO OF SUCH SUBDIVISION.
   § 22-1305 ENFORCEMENT AND PROCEDURES. A. SUBJECT TO THE CONDITIONS AND
 LIMITATIONS  OF  THIS SECTION, ANY LANDLORD WHO, UPON THE COMPLAINT OF A
 TENANT, IS FOUND BY THE COMMISSIONER, AFTER A REASONABLE OPPORTUNITY  TO
 BE  HEARD, TO HAVE COLLECTED AN OVERCHARGE ABOVE THE RENT AUTHORIZED FOR
 A COMMERCIAL SPACE SUBJECT TO THE PROVISIONS OF THIS CHAPTER, IS  LIABLE
 TO  SUCH  TENANT  FOR  A PENALTY EQUAL TO THREE TIMES THE AMOUNT OF SUCH
 OVERCHARGE. IF THE LANDLORD  ESTABLISHES,  BY  A  PREPONDERANCE  OF  THE
 EVIDENCE,  THAT THE OVERCHARGE WAS NOT INTENTIONAL, THE PENALTY SHALL BE
 THE AMOUNT OF THE OVERCHARGE PLUS INTEREST  ASSESSED  FROM  THE  INITIAL
 DATE  OF  SUCH OVERCHARGE. AFTER A COMPLAINT OF RENT OVERCHARGE HAS BEEN
 FILED AND SERVED ON A LANDLORD, THE VOLUNTARY  ADJUSTMENT  OF  THE  RENT
 AND/OR THE VOLUNTARY TENDER OF A REFUND OF RENT OVERCHARGES SHALL NOT BE
 CONSIDERED  BY THE COMMISSIONER AS EVIDENCE THAT SUCH OVERCHARGE WAS NOT
 WILLFUL.
   B. THE LEGAL REGULATED RENT FOR PURPOSES OF DETERMINING AN  OVERCHARGE
 IS  THE  RENT  INDICATED  IN THE ANNUAL REGISTRATION STATEMENT FILED AND
 SERVED UPON THE TENANT SIX YEARS PRIOR TO THE MOST  RECENT  REGISTRATION
 STATEMENT,  OR,  IF MORE RECENTLY FILED, THE INITIAL REGISTRATION STATE-
 MENT PLUS, FOR EACH CASE, ANY SUBSEQUENT LAWFUL  INCREASES  AND  ADJUST-
 MENTS.  THE  COMMISSIONER, 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. AS TO
 COMPLAINTS  FILED  WITHIN  NINETY  DAYS OF THE INITIAL REGISTRATION OF A
 COMMERCIAL SPACE, THE LEGAL REGULATED RENT IS  DEEMED  TO  BE  THE  RENT
 CHARGED ON THE DATE SIX YEARS PRIOR TO THE DATE OF THE INITIAL REGISTRA-
 TION  OF THE COMMERCIAL SPACE OR, IF THE COMMERCIAL SPACE 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 REGISTRA-
 TION  OF  THE COMMERCIAL SPACE CANNOT BE ESTABLISHED, SUCH RENT SHALL BE
 ESTABLISHED BY THE  COMMISSIONER  BASED  ON,  AMONG  OTHER  THINGS,  THE
 FACTORS  SET  FORTH IN PARAGRAPH ONE OF SUBDIVISION F OF SECTION 22-1303
 OF THIS CHAPTER.
   C. COMPLAINTS UNDER THIS SECTION MAY BE FILED WITH THE COMMISSIONER AT
 ANY TIME, HOWEVER ANY RECOVERY OF OVERCHARGE PENALTIES SHALL BE  LIMITED
 TO THE SIX YEARS PRECEDING THE COMPLAINT.
 A. 4255                             6
 
   D.  A  LANDLORD FOUND TO HAVE OVERCHARGED A TENANT MAY BE ASSESSED THE
 REASONABLE COSTS AND ATTORNEYS' FEES OF  ANY  NECESSARY  PROCEEDING  AND
 INTEREST FROM THE INITIAL DATE OF THE OVERCHARGE AT THE RATE OF INTEREST
 PAYABLE  ON  A  JUDGMENT  PURSUANT  TO SECTION FIVE THOUSAND FOUR OF THE
 CIVIL PRACTICE LAWS AND RULES.
   E.  A TENANT MAY, UPON THE EXPIRATION OF THE PERIOD IN WHICH THE LAND-
 LORD MAY INSTITUTE A PROCEEDING PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE
 CIVIL PRACTICE LAW AND RULES, FILE AND ENFORCE AN ORDER OF  THE  COMMIS-
 SIONER AWARDING PENALTIES IN THE SAME MANNER AS A JUDGMENT.
   F.  THE COMMISSIONER SHALL PROMULGATE ALL RULES AND REGULATIONS NECES-
 SARY FOR THE IMPLEMENTATION OF THIS SECTION.
   § 22-1306 RENT REGISTRATION.  EACH  LANDLORD  OF  A  COMMERCIAL  SPACE
 SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL REGISTER SUCH SPACE WITH
 THE ADMINISTERING AGENCY WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE
 DATE  OF  THIS  CHAPTER  USING FORMS PRESCRIBED BY THE COMMISSIONER. THE
 INFORMATION TO BE PROVIDED ON SUCH FORMS SHALL INCLUDE THE FOLLOWING:
   A. THE NAME AND ADDRESS OF THE  BUILDING  OR  GROUP  OF  BUILDINGS  OR
 DEVELOPMENT  IN  WHICH  SUCH  COMMERCIAL SPACE IS LOCATED AND THE TENANT
 THEREOF;
   B. THE NUMBER OF COMMERCIAL SPACES BELONGING TO SUCH LANDLORD  IN  THE
 BUILDING  OR  GROUP OF BUILDINGS OR DEVELOPMENT IN WHICH SUCH COMMERCIAL
 SPACE IS LOCATED;
   C. THE NUMBER OF COMMERCIAL SPACES IN SUCH BUILDING OR GROUP OF BUILD-
 INGS OR DEVELOPMENT SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
   D. THE RENT FOR THE COMMERCIAL SPACE CHARGED ON THE REGISTRATION DATE;
 AND
   E. THE SQUARE FOOTAGE OF  EACH  COMMERCIAL  SPACE  NAMED  PURSUANT  TO
 SUBDIVISION A OF THIS SECTION.
   §  22-1307  FEES.  A. THE DEPARTMENT OF FINANCE SHALL COLLECT FROM THE
 LANDLORD OF EACH COMMERCIAL SPACE REGISTERED PURSUANT TO SECTION 22-1306
 OF THIS CHAPTER AN ANNUAL FEE IN THE AMOUNT OF ONE HUNDRED  DOLLARS  FOR
 EACH  COMMERCIAL SPACE SUBJECT TO THIS CHAPTER, IN ORDER TO DEFRAY COSTS
 INCURRED IN ADMINISTERING THIS CHAPTER.
   B. FAILURE TO PAY THE FEE IMPOSED BY SUBDIVISION  A  OF  THIS  SECTION
 SHALL CONSTITUTE A CHARGE DUE TO THE CITY. ALL SUCH FEES DUE TO THE CITY
 CONSTITUTE  A  DEBT  RECOVERABLE  FROM  THE  LANDLORD  AND  THE CITY MAY
 COMMENCE AN ACTION OR PROCEEDING, FILE A LIEN UPON THE BUILDING OR  TAKE
 ANY OTHER LAWFUL ACTION FOR THE RECOVERY OF SUCH FEES.
   § 22-1308 APPLICATION FOR ADJUSTMENT OF INITIAL RENT.  NOTWITHSTANDING
 ANY  OTHER  PROVISION  OF THIS CHAPTER, A TENANT OR LANDLORD MAY, WITHIN
 SIXTY DAYS OF THE EFFECTIVE DATE OF THIS CHAPTER OR THE COMMENCEMENT  OF
 THE  FIRST TENANCY THEREAFTER, WHICHEVER IS LATER, FILE WITH THE COMMIS-
 SIONER AN APPLICATION FOR ADJUSTMENT OF THE INITIAL LEGAL REGULATED RENT
 FOR SUCH COMMERCIAL SPACE. THE  COMMISSIONER  MAY  ADJUST  SUCH  INITIAL
 LEGAL  REGULATED  RENT UPON A FINDING THAT THE PRESENCE OF EXTRAORDINARY
 CIRCUMSTANCES MATERIALLY AFFECTING THE INITIAL LEGAL REGULATED RENT  HAS
 RESULTED  IN  A  RENT  WHICH  IS  SUBSTANTIALLY DIFFERENT FROM THE RENTS
 GENERALLY PREVAILING IN THE SAME AREA FOR SUBSTANTIALLY SIMILAR  COMMER-
 CIAL SPACES.
   § 22-1309 MANNER OF SERVICE. ALL PAPERS AND NOTICES WHICH, PURSUANT TO
 THE  TERMS OF SECTION 22-1310 OF THIS CHAPTER ARE REQUIRED TO BE SERVED,
 SHALL BE SERVED BY A PROCESS SERVER, OR SHALL  BE  SENT  BY  FIRST-CLASS
 MAIL AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED OR BY ANY EXPRESS MAIL
 SERVICE.
   §  22-1310  RENTAL  GUIDELINES. A. ALL LEASES OF A COMMERCIAL PREMISES
 MAY BE RENEWED AT THE OPTION OF A TENANT WHO DID NOT LOSE THE  RIGHT  TO
 A. 4255                             7
 
 RENEW  A  LEASE  UNDER  THE  GROUNDS  DESCRIBED IN SUBDIVISION D OF THIS
 SECTION. SUCH LEASE RENEWALS SHALL BE FOR A MINIMUM TERM OF  TEN  YEARS,
 PROVIDED  HOWEVER,  THAT  AT  THE  TENANT'S OPTION, AND WITH THE WRITTEN
 APPROVAL  OF  THE LANDLORD, A LEASE OF SHORTER OR LONGER DURATION MAY BE
 SELECTED.
   B. NO PERIOD OF LEASE EXTENSION REQUIRED BY THIS CHAPTER SHALL  EXTEND
 BEYOND THE LANDLORD'S LAWFUL ABILITY TO RENT THE PREMISES TO THE TENANT,
 WHERE SUCH ABILITY IS LIMITED BY:
   (1) THE OBLIGATION TO RENT THE PREMISES TO A THIRD PARTY PURSUANT TO A
 BONA  FIDE  LEASE ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THIS CHAP-
 TER;
   (2) THE EXERCISE BY A THIRD PARTY OF A BONA FIDE OPTION  TO  RENT  THE
 PREMISES PROVIDED THAT SUCH OPTION WAS GIVEN PRIOR TO THE EFFECTIVE DATE
 OF THIS CHAPTER; OR
   (3) ANY OTHER LAWFUL REASON ARISING PRIOR TO SUCH EFFECTIVE DATE.
   C.  A TENANT SHALL LOSE THE RIGHT OF RENEWAL AND A LANDLORD MAY REFUSE
 TO RENEW A LEASE ONLY ON THE FOLLOWING GROUNDS:
   (1) THE TENANT HAS PERSISTENTLY DELAYED RENT PAYMENTS  WITHOUT  CAUSE.
 FOR THE PURPOSE OF THIS SUBDIVISION, "CAUSE" IS DEFINED AS THE WITHHOLD-
 ING  OF  RENTAL  PAYMENTS BY THE TENANT DUE TO THE ALLEGED VIOLATIONS OF
 THE RENTAL AGREEMENT BY THE LANDLORD. IN ORDER FOR THE  LANDLORD  TO  BE
 EXCUSED  FROM  RENEWAL ON THIS GROUND, THE LANDLORD MUST HAVE SERVED THE
 TENANT AT LEAST THREE PRIOR NOTICES DURING THE TERM  OF  THE  LEASE  FOR
 DEMAND OF PAYMENT WITHIN THIRTY DAYS, AND THEN SHOW THAT SUCH LESSEE HAS
 NOT  PAID  WITHIN  SUCH  THIRTY-DAY PERIOD. THE LANDLORD SHALL NOT SERVE
 SUCH NOTICE UNLESS THE RENT PAYMENT WAS IN  ARREARS  FOR  A  MINIMUM  OF
 FIFTEEN DAYS;
   (2)  THE TENANT USES THE COMMERCIAL PREMISES IN A MANNER SUBSTANTIALLY
 DIFFERENT FROM THAT DESCRIBED IN THE LEASE;
   (3) THE TENANT CONDUCTS OR PERMITS ANY FORM OF ILLEGAL ACTIVITY ON THE
 PREMISES;
   (4) THE TENANT HAS SUBSTANTIALLY BREACHED ANY  SUBSTANTIVE  OBLIGATION
 UNDER THE CURRENT LEASE AND HAS FAILED TO CURE SUCH BREACH WITHIN THIRTY
 DAYS FOLLOWING WRITTEN NOTICE TO CURE BY THE LANDLORD;
   (5) UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD INTENDS,
 IN  GOOD FAITH, TO DEMOLISH OR SUBSTANTIALLY RECONSTRUCT THE PREMISES OR
 A SUBSTANTIAL  PART  THEREOF,  OR  TO  CARRY  OUT  SUBSTANTIAL  WORK  OR
 CONSTRUCTION  ON  THE  COMMERCIAL  PREMISES  OR SUBSTANTIAL PART THEREOF
 WHICH HE OR SHE COULD NOT REASONABLY DO WITHOUT OBTAINING POSSESSION  OF
 THE  COMMERCIAL PREMISES. THE LANDLORD SHALL NOTIFY THE TENANT OF HIS OR
 HER DECISION TO REOCCUPY THE COMMERCIAL PREMISES AT LEAST ONE YEAR PRIOR
 TO THE TERMINATION OF THE LEASE. IN THE EVENT THAT  THE  LESSOR  FRAUDU-
 LENTLY  INVOKES  THIS  JUSTIFICATION FOR A REFUSAL TO RENEW A COMMERCIAL
 LEASE, THE DEFRAUDED TENANT MAY COLLECT  TREBLE  DAMAGES  FOR  ANY  LOSS
 SUFFERED AS A RESULT OF SUCH ACTION;
   (6) THE CURRENT TENANCY WAS CREATED BY THE SUBLETTING OF THE PROPERTY,
 WHEREBY  THE  PRIME TENANT DID NOT NOTIFY THE LANDLORD BY CERTIFIED MAIL
 OF THE SUBTENANT'S EXISTENCE AND DID NOT OBTAIN THE WRITTEN  CONSENT  OF
 THE  LANDLORD. THIS GROUND IS VOID IF THE LANDLORD AND TENANT HAD AGREED
 IN THE LEASE TO ALLOW SUBLEASING RIGHTS WITHOUT THE CONSENT OF THE LAND-
 LORD AND ALL OBLIGATIONS OF THE PRIME  TENANT  ON  THE  ISSUE,  WERE  IN
 COMPLIANCE;
   (7)  IT  HAS BEEN DETERMINED BY THE ADMINISTERING AGENCY OR BY A CIVIL
 COURT OF COMPETENT JURISDICTION THAT THE TENANT IS A GROSS AND  PERSIST-
 ENT  VIOLATOR  OF  NEW  YORK  CITY  TAX LAWS, OF ANY LICENSE OBLIGATIONS
 A. 4255                             8
 
 RELATED TO THE USE OF THE PREMISES OR OF ANY LAWS OF  THE  CITY  OF  NEW
 YORK; OR
   (8)  UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD INTENDS
 TO OCCUPY THE RETAIL PREMISES IN ORDER TO CARRY OUT  ITS  OWN  BUSINESS,
 WHICH  CANNOT  BE  THE  SAME TYPE OF BUSINESS THAT THE CURRENT TENANT IS
 OPERATING.  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 LEASE. IN THE EVENT THAT  THE  LANDLORD  FRAUDULENTLY
 INVOKES  THIS  JUSTIFICATION  FOR A REFUSAL TO RENEW A COMMERCIAL LEASE,
 THE DEFRAUDED TENANT MAY COLLECT TREBLE DAMAGES FOR ANY LOSS SUFFERED AS
 A RESULT OF SUCH ACTION.
   § 22-1311 RETALIATION. NO LANDLORD SHALL IN ANY WAY RETALIATE  AGAINST
 ANY  TENANT  FOR  THE TENANT'S ASSERTION OR EXERCISE OF ANY RIGHTS UNDER
 THIS CHAPTER. ANY SUCH RETALIATION MAY SUBJECT THE LANDLORD  TO  A  SUIT
 FOR ACTUAL AND PUNITIVE DAMAGES, INJUNCTIVE RELIEF, AND ATTORNEYS' FEES.
   §  22-1312  WAIVER.  NO  PROVISION  IN ANY LEASE, RENTAL AGREEMENT, OR
 AGREEMENT MADE IN CONNECTION THEREWITH WHICH WAIVES  OR  DIMINISHES  ANY
 TENANT'S RIGHTS UNDER THIS CHAPTER IS VALID.
   §  22-1313  INCONSISTENCY  WITH  OTHER  LAWS. IF ANY PROVISION OF THIS
 CHAPTER IS INCONSISTENT WITH, IN CONFLICT WITH, OR CONTRARY TO ANY OTHER
 PROVISIONS OF LAW, SUCH PROVISION OF THIS  CHAPTER  SHALL  PREVAIL  OVER
 SUCH OTHER PROVISION.
   § 3. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 4. This act shall take effect on the thirtieth day  after  it  shall
 have  become  a  law.    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  to  be  made  and
 completed on or before such effective date.