NY State Senate Bill 2023-S16

Senate Bill S16

2023-2024 Legislative Session

Relating to prohibiting the sale or rental of illegally converted dwellings by real estate brokers

download bill text pdf

Current Bill Status - In Senate Committee Judiciary 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to judiciary
Jan 04, 2023	referred to judiciary

2023-S16 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §443-b, amd §441-c, RP L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5458
2021-2022: S781

2023-S16 (ACTIVE) - Summary

Prohibits the sale or rental of illegally converted dwellings by real estate brokers, agents or salespersons; directs increased fines and revocation of real estate license for violation.

2023-S16 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S16

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the real property law, in relation to sale or rent of
illegally converted dwellings

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill prohibits the listing for sale, sale and offering to sell,
listing for rent, renting and offering to rent any illegally converted
dwelling. The bill establishes a license revocation for real estate
brokers, agents and salespeople who violate the provisions of this act.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends the real property law by adding a new
section 443-b to prohibit real estate brokers, agents and salespeople
from listing for sale, selling or offering to sell, listing for rent,
renting and offering to rent any illegally converted dwelling. An ille-
gal conversion is any change to structural parts or existing facilities

of any building including but the subdivision of rooms, or erection or
demolition of walls, or the moving of any building from one location or
position to another, in violation of any state or local law, ordinance,
code or rule or regulation relating to real property, buildings or
multiple dwellings.

Section two of the bill adds language to paragraph (a) of subdivision 1
of section 441-c of the real property law that establishes a punishment
of license revocation for any real estate broker, agent or salesperson
that violates the provisions of section 1 of this bill, 443-b. In find-
ing that a violation has been made by an agent, broker or salesman, the
violation punishments from the department are listed: ten thousand
dollars fine for 1st violation, fifty thousand fine for second violation
and revocation of license for 3rd violation are issued under this arti-
cle.

Section three of the bill sets an immediate effective date.

 
JUSTIFICATION:

Illegal home conversion is a systemic issue in our state and often
plagues communities with vulnerable, low-income and often immigrant
tenants seeking housing in an unaffordable market. Illegally converted
dwellings create a safety hazard for those occupying the dwelling, their
neighbors and for first responders in the event of an emergency that
requires entry into the dwellings.

While enforcement efforts are pursued by many law enforcement agencies
in the state, the issue of illegal home conversions and the substandard
conditions faced by many fearful tenants remain. In some cases, many
landlords or building owners find that the costs associated with being
caught for such violations are simply the cost of doing business.

Solving the issue of illegal dwelling occupancy requires unconventional
approaches which approach the issue differently than simply fining the
landlord and ordering the landlord to cease renting illegally converted
units. This bill will punish and deter real estate brokers, agents and
salespeople from selling or attempting to negotiate illegally converted
dwellings, which will hopefully combat the swelling issue of illegal
home conversions from a different legal angle and will make our communi-
ties safer.

 
PRIOR LEGISLATIVE HISTORY:

2022: S781 - Referred to Judiciary

2021: S781 - Referred to Judiciary

2020: S5458A - Referred to Judiciary

2019: S5458 - Referred to Judiciary

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediate

2023-S16 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    16
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN  ACT  to  amend the real property law, in relation to sale or rent of
   illegally converted dwellings

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real property law is amended by adding a new section
 443-b to read as follows:
   § 443-B. SALE OR RENT OF PROPERTY VIOLATING ILLEGAL CONVERSION  RULES.
 NO REAL ESTATE BROKER, AGENT OR SALESPERSON SHALL LIST FOR SALE, SELL OR
 OFFER  TO  SELL,  OR  LIST FOR RENT, RENT OR OFFER TO RENT ANY ILLEGALLY
 CONVERTED DWELLING. FOR THE PURPOSES OF THIS SECTION, AN ILLEGAL CONVER-
 SION SHALL MEAN ANY CHANGE IN THE STRUCTURAL PARTS OR  EXISTING  FACILI-
 TIES  OF ANY BUILDING, INCLUDING, BUT NOT LIMITED TO, THE SUBDIVISION OF
 ROOMS, OR ERECTION OR DEMOLITION OF WALLS, OR THE MOVING OF ANY BUILDING
 FROM ONE LOCATION OR POSITION TO ANOTHER, IN VIOLATION OF ANY  STATE  OR
 LOCAL  LAW, ORDINANCE, CODE OR RULE OR REGULATION RELATING TO REAL PROP-
 ERTY, BUILDINGS OR MULTIPLE DWELLINGS.
   § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
 erty law, as amended by chapter 529 of the laws of 2022, is  amended  to
 read as follows:
   (a)  The  department  of state may revoke the license of a real estate
 broker or salesperson or suspend  the  same,  for  such  period  as  the
 department  may  deem  proper,  or in lieu thereof may impose a fine not
 exceeding two thousand dollars  payable  to  the  department  of  state,
 provided  that fifty percent of all moneys received by the department of
 state for such fines shall be  payable  to  the  anti-discrimination  in
 housing  fund  established  pursuant  to  section  eighty-a of the state
 finance law, or a  reprimand  upon  conviction  of  the  licensee  of  a
 violation of any provision of this article, or for a violation of subdi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01499-01-3
 S. 16                               2
 
 vision  four of section four hundred forty-two-h of this article, or for
 a material misstatement in the application for such license, or if  such
 licensee  has  been  guilty  of  fraud  or  fraudulent practices, or for
 dishonest  or misleading advertising, or has demonstrated untrustworthi-
 ness or incompetency to act as a real estate broker or  salesperson,  or
 for  a  violation  of  article fifteen of the executive law committed in
 their capacity as a real estate broker or salesperson, as the  case  may
 be.  UPON A FINDING THAT A BROKER, AGENT OR SALESPERSON HAS VIOLATED THE
 PROVISIONS OF SECTION FOUR HUNDRED FORTY-THREE-B OF  THIS  ARTICLE,  THE
 DEPARTMENT  SHALL  IMPOSE  A  FINE  OF  TEN THOUSAND DOLLARS FOR A FIRST
 VIOLATION AND A FINE OF FIFTEEN THOUSAND DOLLARS FOR A SECOND VIOLATION.
 UPON A THIRD VIOLATION OF SUCH SECTION THE DEPARTMENT SHALL  REVOKE  THE
 LICENSE  ISSUED  UNDER THIS ARTICLE. In the case of a real estate broker
 engaged in the business of  a  tenant  relocator,  untrustworthiness  or
 incompetency  shall include engaging in any course of conduct including,
 but not limited to, the  interruption  or  discontinuance  of  essential
 building  service,  that interferes with or disturbs the peace, comfort,
 repose and quiet enjoyment of a tenant.
   § 3. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.