S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2276--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by Sens. KAVANAGH, CLEARE, FELDER, GOUNARDES, HOYLMAN-SIGAL,
   SEPULVEDA -- read twice and ordered printed, and when  printed  to  be
   committed  to  the  Committee on Judiciary -- committee discharged and
   said bill committed to the  Committee  on  Housing,  Construction  and
   Community  Development  --  reported favorably from said committee and
   committed to the Committee on Finance --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the  multiple  dwelling  law  and  the  private  housing
   finance  law,  in  relation  to  establishing a program to address the
   legalization of specified basements and cellars and the conversion  of
   other  specified  basements and cellars in a city with a population of
   one million or more
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The multiple dwelling law is amended by adding a new arti-
 cle 7-D to read as follows:
                                ARTICLE 7-D
           LEGALIZATION AND CONVERSION OF BASEMENTS AND CELLARS
 SECTION 288. DEFINITIONS.
         289. BASEMENT AND CELLAR LOCAL LAWS AND REGULATIONS.
         290. TENANT PROTECTIONS IN INHABITED BASEMENTS AND CELLARS.
   § 288. DEFINITIONS. AS USED IN THIS ARTICLE,  UNLESS  THE  CONTEXT  OR
 SUBJECT  MATTER  REQUIRES  OTHERWISE, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. THE TERM "INHABITED BASEMENT OR CELLAR" MEANS A BASEMENT OR  CELLAR
 UNLAWFULLY OCCUPIED AS A RESIDENCE BY ONE OR MORE TENANTS ON OR PRIOR TO
 THE EFFECTIVE DATE OF THIS ARTICLE;
   2.  THE TERM "RENTED" MEANS LEASED, LET, OR HIRED OUT, WITH OR WITHOUT
 A WRITTEN AGREEMENT; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03476-02-3
 S. 2276--A                          2
              

 
   3. THE TERM "TENANT" MEANS AN INDIVIDUAL TO WHOM AN INHABITED BASEMENT
 OR CELLAR DWELLING UNIT IS RENTED.
   § 289. BASEMENT  AND  CELLAR  LOCAL LAWS AND REGULATIONS.  1. NOTWITH-
 STANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW TO THE CONTRARY, IN A
 CITY WITH A POPULATION OF ONE MILLION OR  MORE,  THE  LOCAL  LEGISLATIVE
 BODY  MAY,  BY  LOCAL LAW, ESTABLISH A PROGRAM TO ADDRESS, PROVIDED THAT
 HEALTH AND SAFETY ARE  PROTECTED,  (A)  THE  LEGALIZATION  OF  SPECIFIED
 INHABITED BASEMENTS AND CELLARS IN EXISTENCE PRIOR TO THE EFFECTIVE DATE
 OF  THIS ARTICLE THROUGH CONVERSION TO LEGAL DWELLING UNITS, AND (B) THE
 CONVERSION OF OTHER SPECIFIED BASEMENTS AND CELLARS IN  EXISTENCE  PRIOR
 TO THE EFFECTIVE DATE OF THIS ARTICLE TO LEGAL DWELLING UNITS. THE LOCAL
 LAW AUTHORIZED BY THIS SECTION, AND ANY RULES OR REGULATIONS PROMULGATED
 THEREUNDER, SHALL NOT BE SUBJECT TO ENVIRONMENTAL REVIEW, INCLUDING, BUT
 NOT LIMITED TO, ENVIRONMENTAL REVIEW CONDUCTED PURSUANT TO ARTICLE EIGHT
 OF  THE  ENVIRONMENTAL  CONSERVATION  LAW  AND ANY STATE AND LOCAL REGU-
 LATIONS PROMULGATED THEREUNDER.
   2. THE PROGRAM ESTABLISHED BY SUCH LOCAL LAW MAY PROVIDE TO  AN  OWNER
 WHO CONVERTS A BASEMENT OR CELLAR IN ACCORDANCE WITH A LOCAL LAW AUTHOR-
 IZED  BY THIS ARTICLE OR WHO OTHERWISE ABATES THE ILLEGAL OCCUPANCY OF A
 BASEMENT OR CELLAR: (A) AMNESTY FROM ANY CIVIL OR ADMINISTRATIVE LIABIL-
 ITY, CITATIONS, FINES, PENALTIES OR ANY OTHER ENFORCEMENT OF  OR  PROSE-
 CUTION  FOR  CIVIL  VIOLATIONS OF THIS CHAPTER, OTHER STATE LAW OR LOCAL
 LAW OR RULES, AND THE ZONING RESOLUTION OF SUCH  CITY,  AND  (B)  RELIEF
 FROM  ANY OUTSTANDING CIVIL JUDGMENTS ISSUED IN CONNECTION WITH ANY SUCH
 VIOLATION OF SUCH LAWS, RULES OR ZONING  RESOLUTION  ISSUED  BEFORE  THE
 EFFECTIVE  DATE  OF THIS ARTICLE; PROVIDED, HOWEVER, THAT SUCH LOCAL LAW
 SHALL REQUIRE THAT SUCH AMNESTY OR RELIEF SHALL BE AVAILABLE ONLY TO  AN
 OWNER  THAT  HAS  SUBMITTED  AN  APPLICATION  FOR A CONVERSION BY A DATE
 CERTAIN SUBSEQUENT TO THE EFFECTIVE DATE OF SUCH LOCAL LAW AND THAT SUCH
 DATE SHALL NOT BE LATER THAN TEN YEARS AFTER THE EFFECTIVE DATE OF  SUCH
 LOCAL LAW.
   3. (A) SUCH LOCAL LAW MAY SUPERCEDE ANY PROVISION OF LOCAL LAW OR RULE
 TO FACILITATE THE CONVERSION OF A SPECIFIED INHABITED BASEMENT OR CELLAR
 OR  OTHER  SPECIFIED BASEMENT OR CELLAR IN EXISTENCE PRIOR TO THE EFFEC-
 TIVE DATE OF THIS ARTICLE INTO A LAWFUL DWELLING UNIT.  FOR THE PURPOSES
 OF THIS PROGRAM, THE LOCAL LAW ADOPTED BY THE LEGISLATIVE BODY  OF  SUCH
 MUNICIPALITY  SHALL  BE NO LESS STRINGENT THAN THE RELEVANT STANDARDS OR
 SPECIFICATIONS OF THE UNIFORM FIRE  PREVENTION  AND  BUILDING  CODE  AND
 STATE ENERGY CONSERVATION CONSTRUCTION CODE APPLICABLE TO THE CONVERSION
 OF  BASEMENTS  AND CELLARS TO HABITABLE DWELLING UNITS IN MUNICIPALITIES
 OTHER THAN A CITY WITH A POPULATION OF ONE MILLION OR MORE, UNLESS  SUCH
 LEGISLATIVE  BODY  DETERMINES  THAT THE APPLICATION OF SUCH STANDARDS OR
 SPECIFICATIONS WOULD PRESENT  PRACTICAL  DIFFICULTIES  THAT  IMPEDE  THE
 PURPOSES  OF  THIS ARTICLE AND INCLUDES IN SUCH LOCAL LAW AN ALTERNATIVE
 STANDARD OR SPECIFICATION THAT SUCH LEGISLATIVE BODY  DETERMINES  TO  BE
 SUFFICIENT TO PROTECT PUBLIC SAFETY.
   (B)  SUCH  LOCAL  LAW  MAY  SUPERSEDE THE FOLLOWING PROVISIONS OF THIS
 CHAPTER: SECTIONS TWENTY-SIX, TWENTY-EIGHT, THIRTY, THIRTY-ONE,  THIRTY-
 TWO,  THIRTY-THREE,  THIRTY-FOUR, THIRTY-FIVE, THIRTY-SIX, THIRTY-SEVEN,
 FIFTY, FIFTY-A, FIFTY-ONE, FIFTY-TWO, FIFTY-FOUR, FIFTY-SIX,  SIXTY-ONE,
 SIXTY-TWO,  SIXTY-THREE, SIXTY-FOUR, SIXTY-FIVE, SIXTY-EIGHT, AND SEVEN-
 TY-SIX, AND ARTICLES FOUR, FIVE AND SIX.
   (C) ANY AMENDMENT OF THE ZONING RESOLUTION  NECESSARY  TO  ENACT  SUCH
 PROGRAM  SHALL BE SUBJECT TO A PUBLIC HEARING AT THE PLANNING COMMISSION
 OF SUCH LOCALITY, AND APPROVAL BY SUCH COMMISSION  AND  THE  LEGISLATIVE
 BODY  OF  SUCH  LOCAL  GOVERNMENT,  PROVIDED, HOWEVER, THAT IT SHALL NOT
 S. 2276--A                          3
 
 REQUIRE ENVIRONMENTAL REVIEW, INCLUDING, NOT LIMITED  TO,  ENVIRONMENTAL
 REVIEW  CONDUCTED PURSUANT TO ARTICLE EIGHT OF THE ENVIRONMENTAL CONSER-
 VATION LAW AND ANY STATE AND LOCAL REGULATIONS  PROMULGATED  THEREUNDER,
 OR ANY ADDITIONAL LAND USE REVIEW.
   § 290. TENANT  PROTECTIONS IN INHABITED BASEMENTS AND CELLARS.  1. THE
 PROGRAM AUTHORIZED BY THIS ARTICLE SHALL REQUIRE AN APPLICATION TO  MAKE
 ALTERATIONS  TO  LEGALIZE AN INHABITED BASEMENT OR CELLAR BE ACCOMPANIED
 BY A CERTIFICATION INDICATING WHETHER SUCH UNIT WAS RENTED TO  A  TENANT
 ON THE EFFECTIVE DATE OF THIS ARTICLE, NOTWITHSTANDING WHETHER THE OCCU-
 PANCY  OF SUCH UNIT WAS AUTHORIZED BY LAW. AN AGENCY OR OFFICE OF A CITY
 WHERE THE PROGRAM HAS BEEN ESTABLISHED MAY NOT USE SUCH CERTIFICATION AS
 THE BASIS FOR AN ENFORCEMENT ACTION FOR ILLEGAL OCCUPANCY OF SUCH  UNIT,
 PROVIDED  THAT  NOTHING  CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED TO
 LIMIT ANY AGENCY OR OFFICE FROM ISSUING A  VACATE  ORDER  FOR  HAZARDOUS
 CONDITIONS.
   2.  THE  LOCAL  LAW  AUTHORIZED  BY  THIS ARTICLE SHALL PROVIDE THAT A
 TENANT IN OCCUPANCY AT THE TIME OF THE EFFECTIVE DATE  OF  THIS  ARTICLE
 WHO  IS  EVICTED  OR  OTHERWISE REMOVED FROM SUCH UNIT AS A RESULT OF AN
 ALTERATION NECESSARY TO BRING  AN  INHABITED  BASEMENT  OR  CELLAR  INTO
 COMPLIANCE WITH THE STANDARDS ESTABLISHED BY THE LOCAL LAW AUTHORIZED BY
 THIS ARTICLE, SHALL HAVE A RIGHT OF FIRST REFUSAL TO RETURN TO SUCH UNIT
 AS  A  TENANT  UPON ITS FIRST LAWFUL OCCUPANCY AS A LEGAL DWELLING UNIT,
 NOTWITHSTANDING WHETHER THE OCCUPANCY AT THE TIME OF THE EFFECTIVE  DATE
 OF  THIS ARTICLE WAS AUTHORIZED BY LAW. SUCH LOCAL LAW SHALL SPECIFY HOW
 TO DETERMINE PRIORITY WHEN MULTIPLE TENANTS MAY CLAIM SUCH RIGHT.
   3. A TENANT UNLAWFULLY DENIED A RIGHT OF FIRST REFUSAL TO RETURN TO  A
 LEGAL DWELLING UNIT, AS PROVIDED PURSUANT TO THE LOCAL LAW AUTHORIZED BY
 THIS  ARTICLE,  SHALL  HAVE  A CAUSE OF ACTION AGAINST THE OWNER OF SUCH
 DWELLING UNIT IN ANY COURT OF COMPETENT  JURISDICTION  FOR  COMPENSATORY
 DAMAGES  OR  DECLARATORY AND INJUNCTIVE RELIEF AS THE COURT DEEMS NECES-
 SARY IN THE INTERESTS OF JUSTICE, PROVIDED THAT SUCH COMPENSATORY RELIEF
 SHALL NOT EXCEED THE ANNUAL RENTAL CHARGES FOR SUCH LEGAL DWELLING UNIT.
   4. NOTWITHSTANDING THE LOCAL EMERGENCY HOUSING  RENT  CONTROL  ACT  OF
 1962  AS AMENDED, THE LOCAL LAW AUTHORIZED BY THIS ARTICLE SHALL INCLUDE
 PROTECTIONS AGAINST EVICTION AND LIMITATIONS ON RENT INCREASES FOR BASE-
 MENT OR CELLAR DWELLING UNITS THAT UNDERGO LEGALIZATION, INCLUDING LIMI-
 TATIONS ON RENT INCREASES FOR TENANTS RETURNING TO SUCH  UNITS  PURSUANT
 TO THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION.
   §  2. The private housing finance law is amended by adding a new arti-
 cle 8-C to read as follows:
                              ARTICLE VIII-C
    LOANS TO OWNERS OF ONE TO FOUR UNIT PRIVATE AND MULTIPLE DWELLINGS
 SECTION 480. POLICY AND PURPOSES OF ARTICLE.
         481. DEFINITIONS.
         482. LOANS TO OWNERS.
         483. CONDITIONS PRECEDENT TO MAKING LOANS TO OWNERS.
         484. SERVICING OF LOANS BY BANKING INSTITUTIONS AND LOAN SERVIC-
                ING COMPANIES.
         485. INTEREST REDUCTION SUBSIDIES.
         486. MORTGAGE RECORDING TAX EXEMPTION.
         487. RULES AND REGULATIONS.
         488. SOURCE OF FUNDS.
   § 480. POLICY AND PURPOSES OF ARTICLE. IT IS HEREBY DECLARED AND FOUND
 THAT THERE EXISTS IN CITIES WITH A POPULATION OF ONE MILLION OR  MORE  A
 SERIOUSLY INADEQUATE SUPPLY OF SAFE AND SANITARY DWELLING UNITS, PARTIC-
 ULARLY  FOR PERSONS OF LOW AND MODERATE INCOME. IT FURTHER IS FOUND THAT
 S. 2276--A                          4
 
 THERE EXISTS IN SUCH CITIES MANY BASEMENTS AND CELLARS IN  ONE  TO  FOUR
 UNIT  DWELLINGS,  SOME  OF WHICH ARE INHABITED UNLAWFULLY, THAT COULD BE
 CONVERTED INTO SAFE AND SANITARY LAWFUL DWELLING UNITS.  IT  FURTHER  IS
 FOUND THAT SUCH CONVERSION AND ANY ASSOCIATED REHABILITATION OR IMPROVE-
 MENT OF SUCH DWELLINGS CANNOT BE READILY ACCOMPLISHED WITHOUT PUBLIC AID
 IN THE FORM OF LOW INTEREST LOANS OR GRANTS TO OWNERS OF SUCH DWELLINGS.
 THE  CREATION  OF  LAWFUL  AND HABITABLE DWELLING UNITS IN BASEMENTS AND
 CELLARS OF ONE TO FOUR  UNIT  DWELLINGS  IS  HEREBY  DECLARED  A  PUBLIC
 PURPOSE AND A MUNICIPAL PURPOSE FOR WHICH PUBLIC MONIES MAY BE LOANED OR
 GRANTED.  IN  ORDER  TO FURTHER SUCH PURPOSE, IT IS HEREBY DECLARED THAT
 ADDITIONAL PROVISIONS SHOULD BE MADE TO PROVIDE PUBLIC MONIES FOR INTER-
 EST REDUCTION SUBSIDIES FOR PRIVATE LOANS MADE BY PRIVATE INVESTORS  FOR
 SUCH  REHABILITATION.  THE  NECESSITY  IN  THE  PUBLIC  INTEREST FOR THE
 PROVISIONS OF THIS ARTICLE IS HEREBY DECLARED AS A MATTER OF LEGISLATIVE
 DETERMINATION.
   § 481. DEFINITIONS. 1. "AGENCY" SHALL MEAN THE DEPARTMENT  OF  HOUSING
 PRESERVATION  AND  DEVELOPMENT  OF THE CITY OF NEW YORK OR ANY SUCCESSOR
 THERETO.
   2. "BANKING ORGANIZATION" SHALL MEAN ANY CORPORATION,  ASSOCIATION  OR
 ORGANIZATION  ORGANIZED  UNDER THE BANKING LAWS OF NEW YORK STATE OR THE
 UNITED STATES WHICH IS AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE.
   3. "BASEMENT" SHALL HAVE THE SAME MEANING AS PROVIDED  IN  SUBDIVISION
 THIRTY-EIGHT OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   4.  "CELLAR"  SHALL  HAVE  THE SAME MEANING AS PROVIDED IN SUBDIVISION
 THIRTY-SEVEN OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   5. "CITY" SHALL MEAN A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   6. "CLIMATE RESILIENCY IMPROVEMENTS" SHALL MEAN IMPROVEMENTS  FOR  THE
 PURPOSE OF PROTECTING LAND OR ANY STRUCTURES THEREON FROM DAMAGE RESULT-
 ING FROM OR WHICH MAY RESULT FROM CHANGES IN CLIMATE, INCLUDING, BUT NOT
 LIMITED TO, EXTREME WEATHER EVENTS, ABNORMAL TEMPERATURES, AND SEA LEVEL
 RISE,  OR  OF REDUCING THE IMPACT OF THE OPERATION OF SUCH STRUCTURES ON
 CLIMATE CHANGE, INCLUDING, BUT NOT LIMITED TO, IMPROVEMENTS THAT  REDUCE
 ENERGY CONSUMPTION OR PROMOTE THE EFFICIENT USE OF NATURAL RESOURCES.
   7.  "EXISTING  MULTIPLE  DWELLING"  SHALL  MEAN A MULTIPLE DWELLING AS
 DEFINED IN SECTION FOUR OF THE MULTIPLE DWELLING LAW THAT IS  IN  EXIST-
 ENCE  ON  THE DATE UPON WHICH AN APPLICATION FOR A LOAN PURSUANT TO THIS
 ARTICLE IS RECEIVED BY THE AGENCY.
   8. "EXISTING PRIVATE  DWELLING"  SHALL  MEAN  A  PRIVATE  DWELLING  AS
 DEFINED  IN  SECTION FOUR OF THE MULTIPLE DWELLING LAW THAT IS IN EXIST-
 ENCE ON THE DATE UPON WHICH AN APPLICATION FOR A LOAN PURSUANT  TO  THIS
 ARTICLE IS RECEIVED BY THE AGENCY.
   9.  "FEDERAL  GRANT  FUNDS"  SHALL  MEAN  ANY GRANTS RECEIVED FROM THE
 FEDERAL GOVERNMENT FOR COMMUNITY DEVELOPMENT ACTIVITIES OR FOR THE REHA-
 BILITATION OR CONSERVATION OF PRIVATE OR MULTIPLE DWELLINGS.
   10. "LOAN" SHALL MEAN A LOAN OR A GRANT MADE BY THE CITY  PURSUANT  TO
 SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE, PROVIDED, HOWEVER, THAT
 PROVISIONS  OF  THIS ARTICLE CONCERNING THE REPAYMENT OR FORGIVENESS OF,
 OR SECURITY FOR, A LOAN SHALL NOT APPLY TO ANY GRANT  MADE  PURSUANT  TO
 THIS ARTICLE.
   11.  "OWNER" SHALL MEAN AN INDIVIDUAL, A PARTNERSHIP, A CORPORATION OR
 OTHER ENTITY, INCLUDING, BUT NOT LIMITED TO, A TRUST, OR A JOINT  TENAN-
 CY, TENANCY IN COMMON OR TENANCY BY THE ENTIRETY HOLDING RECORD OR BENE-
 FICIAL  TITLE  IN FEE SIMPLE TO AN EXISTING PRIVATE OR MULTIPLE DWELLING
 AND THE REAL PROPERTY UPON WHICH IT IS SITUATED, OR THE  LESSEE  THEREOF
 UNDER A LEASE HAVING AN UNEXPIRED TERM OF AT LEAST THIRTY YEARS. "OWNER"
 S. 2276--A                          5
 
 SHALL BE DEEMED TO ALSO INCLUDE A COOPERATIVE CORPORATION OR A CONDOMIN-
 IUM ASSOCIATION.
   12.  "PRIVATE INVESTOR" SHALL MEAN A BANKING ORGANIZATION, FOUNDATION,
 PUBLIC BENEFIT CORPORATION, LABOR UNION, CREDIT UNION, EMPLOYERS'  ASSO-
 CIATION, VETERANS' ORGANIZATION, COLLEGE, UNIVERSITY, EDUCATIONAL INSTI-
 TUTION,  CHILD  CARE  INSTITUTION, HOSPITAL, MEDICAL RESEARCH INSTITUTE,
 INSURANCE COMPANY, TRUSTEE OR  FIDUCIARY,  TRUSTEES  OF  A  PENSION  AND
 RETIREMENT FUND OR SYSTEM, CORPORATION, PARTNERSHIP, INDIVIDUAL OR OTHER
 ENTITY OR ANY COMBINATION OF THE FOREGOING, AND SHALL INCLUDE THE UNITED
 STATES OF AMERICA AND ANY OF ITS AGENCIES AND DEPARTMENTS.
   13.  "REHABILITATION"  SHALL  MEAN  THE  INSTALLATION, REPLACEMENT, OR
 REPAIR OF HEATING, PLUMBING, ELECTRICAL AND RELATED SYSTEMS OR THE ELIM-
 INATION OF CONDITIONS DANGEROUS TO HUMAN LIFE OR DETRIMENTAL TO  HEALTH,
 INCLUDING  NUISANCES  AS  DEFINED IN LOCAL HOUSING OR HEALTH CODES OR AS
 DEFINED IN SECTION THREE HUNDRED NINE OF THE MULTIPLE DWELLING  LAW,  OR
 OTHER   REHABILITATION  OR  GENERAL  PROPERTY  AND  ENERGY  CONSERVATION
 IMPROVEMENTS.
   14. "STATE GRANT FUNDS" SHALL MEAN ANY GRANT RECEIVED FROM  THE  STATE
 OR  ANY  PUBLIC BENEFIT CORPORATION FOR COMMUNITY DEVELOPMENT ACTIVITIES
 OR FOR THE REHABILITATION OR CONSERVATION OF PRIVATE OR MULTIPLE  DWELL-
 INGS.
   § 482. LOANS  TO  OWNERS.  1.  NOTWITHSTANDING  THE  PROVISIONS OF ANY
 GENERAL, SPECIAL OR LOCAL LAW, THE CITY, ACTING THROUGH THE  AGENCY,  IS
 AUTHORIZED:
   (A)  TO MAKE, OR CONTRACT TO MAKE, LOANS TO OWNERS OF ONE TO FOUR UNIT
 EXISTING PRIVATE OR MULTIPLE DWELLINGS, SUBJECT  TO  THE  LIMITATION  OF
 SUBDIVISIONS TWO THROUGH SEVEN OF THIS SECTION, IN SUCH AMOUNTS AS SHALL
 BE  REQUIRED FOR THE CONVERSION OF A BASEMENT OR CELLAR IN A ONE TO FOUR
 UNIT PRIVATE OR MULTIPLE DWELLING TO A SAFE AND SANITARY LAWFUL DWELLING
 UNIT AND OTHER REHABILITATION OF OR  IMPROVEMENTS  TO  SUCH  PRIVATE  OR
 MULTIPLE  DWELLING,  INCLUDING,  BUT  NOT LIMITED TO, CLIMATE RESILIENCY
 IMPROVEMENTS, THAT THE AGENCY MAY DETERMINE ARE NEEDED IN SUCH DWELLING;
   (B) TO MAKE TEMPORARY LOANS OR ADVANCES TO OWNERS OF ONE TO FOUR  UNIT
 EXISTING  PRIVATE  OR  MULTIPLE  DWELLINGS  IN ANTICIPATION OF PERMANENT
 LOANS TO SUCH OWNERS FOR THE PURPOSES DESCRIBED IN PARAGRAPH (A) OF THIS
 SUBDIVISION; AND
   (C) TO MAKE OR CONTRACT TO MAKE GRANTS TO ANY OWNER DESCRIBED IN PARA-
 GRAPH (A) OF THIS SUBDIVISION, ON THE SAME TERMS AS PERMITTED UNDER SUCH
 PARAGRAPH FOR A LOAN.
   2. EACH LOAN SHALL BE EVIDENCED BY A NOTE EXECUTED BY THE OWNER OF THE
 EXISTING DWELLING. REPAYMENT OF EACH SUCH NOTE SHALL BE WITHIN A  PERIOD
 OF  FORTY YEARS, PROVIDED THAT SUCH PERIOD MAY BE EXTENDED AS THE AGENCY
 MAY DETERMINE NECESSARY TO ENSURE THE CONTINUED AFFORDABILITY OR ECONOM-
 IC VIABILITY OF THE EXISTING DWELLING. THE REPAYMENT SHALL  BE  MADE  IN
 SUCH  MANNER  AS  MAY  BE PROVIDED IN SUCH NOTE AND CONTRACT, IF ANY, IN
 CONNECTION WITH SUCH LOAN,  AND  MAY  AUTHORIZE  SUCH  OWNER,  WITH  THE
 CONSENT  OF  THE  AGENCY, TO PREPAY THE PRINCIPAL OF THE LOAN SUBJECT TO
 SUCH TERMS AND CONDITIONS AS THEREIN PROVIDED. IN ORDER TO MAKE ANY SUCH
 LOAN AFFORDABLE TO THE OWNER, THE AGENCY MAY PROVIDE IN  SUCH  NOTE  AND
 CONTRACT THAT ALL OF THE OUTSTANDING PRINCIPAL OF SAID LOAN MAY BE SELF-
 LIQUIDATED  OVER  A  PERIOD OF NOT LESS THAN FIFTEEN YEARS OF CONTINUOUS
 COMPLIANCE BY THE OWNER  WITH  A  REGULATORY  AGREEMENT  OR  RESTRICTIVE
 COVENANT WITH OR APPROVED BY THE AGENCY AND UPON THE SATISFACTION OF ANY
 ADDITIONAL  CONDITIONS  SPECIFIED  THEREIN.  SUCH  NOTE AND CONTRACT MAY
 CONTAIN SUCH OTHER  TERMS  AND  PROVISIONS  NOT  INCONSISTENT  WITH  THE
 PROVISIONS OF THIS ARTICLE AS THE AGENCY MAY DEEM NECESSARY OR DESIRABLE
 S. 2276--A                          6
 
 TO SECURE REPAYMENT OF THE LOAN, THE INTEREST THEREON, IF ANY, AND OTHER
 CHARGES  IN  CONNECTION  THEREWITH,  AND  TO  CARRY OUT THE PURPOSES AND
 PROVISIONS OF THIS ARTICLE, INCLUDING, BUT  NOT  LIMITED  TO,  PROVIDING
 THAT  THE LIEN CREATED BY THE NOTE AND MORTGAGE, AND, IF APPLICABLE, ANY
 REGULATORY AGREEMENT EXECUTED BY SUCH OWNER AND  AGENCY  OR  RESTRICTIVE
 COVENANT  APPROVED BY SUCH AGENCY, MAY BE RECORDED IN AN EQUAL OR SUBOR-
 DINATE POSITION, OR SUBSEQUENTLY MADE EQUAL OR SUBORDINATE,  TO  A  LIEN
 RECORDED BY ANY PRIVATE INVESTOR AGAINST SUCH EXISTING DWELLING.
   3.  THE  AGENCY  IN ITS DISCRETION MAY REQUIRE THAT THE OWNER EXECUTE,
 ACKNOWLEDGE AND DELIVER A UNIFORM COMMERCIAL  CODE  FINANCING  STATEMENT
 FOR THE REAL PROPERTY IMPROVEMENT TO BE IN SUCH FORM AS THE AGENCY SHALL
 SPECIFY AND IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 9--502 OF THE
 UNIFORM  COMMERCIAL CODE OF THE STATE OF NEW YORK. SAID FINANCING STATE-
 MENT SHALL BE FILED OR RECORDED WITHOUT CHARGE IN  ACCORDANCE  WITH  THE
 PROVISIONS  OF  PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 9--501 OF THE
 UNIFORM COMMERCIAL CODE, AND FROM THE DATE OF SUCH FILING THE CITY SHALL
 HAVE A LIEN AGAINST  SAID  REAL  PROPERTY  IMPROVEMENT  FOR  THE  AMOUNT
 ADVANCED OR SO MUCH THEREOF AS REMAINS UNPAID TOGETHER WITH THE INTEREST
 THEREON.  UPON  PAYMENT  OF  ALL  SUMS ADVANCED BY THE CITY AND INTEREST
 THEREON, AND UPON DEMAND OF THE THEN RECORD OWNER OF THE REAL  PROPERTY,
 THE  AGENCY  SHALL  DELIVER  A  COPY  OF THE FINANCING STATEMENT WITH AN
 ENDORSEMENT THEREON THAT THE LIEN IS SATISFIED. UPON FILING OF SUCH COPY
 IN THE OFFICE WHERE THE FINANCING STATEMENT WAS FILED AND  UPON  PAYMENT
 OF  THE  PROPER FEE THEREFOR, THE LIEN OF SUCH FINANCING STATEMENT SHALL
 BE DISCHARGED.
   4. THE AGENCY MAY REQUIRE THE OWNER TO EXECUTE A MORTGAGE AS  SECURITY
 FOR  A  LOAN  IN  LIEU  OF  OR  IN  ADDITION TO A FINANCING STATEMENT AS
 PROVIDED IN SUBDIVISION THREE  OF  THIS  SECTION.  SUCH  MORTGAGE  SHALL
 CONTAIN  SUCH  TERMS AND PROVISIONS NOT INCONSISTENT WITH THE PROVISIONS
 OF THIS ARTICLE AS THE AGENCY  SHALL  DEEM  NECESSARY  OR  DESIRABLE  TO
 SECURE REPAYMENT OF THE LOAN.
   5.  LOANS  MAY  BE  MADE WITH RESPECT TO A ONE TO FOUR UNIT PRIVATE OR
 MULTIPLE DWELLING ENCUMBERED BY MORTGAGES, PROVIDED NO  MORTGAGE  IS  IN
 DEFAULT,  EXCEPT IF SUCH DEFAULT SHALL BE REMEDIED BY THE PROPOSED REHA-
 BILITATION OR IMPROVEMENT.
   6. THE AGENCY MAY REQUIRE THE PAYMENT OF CHARGES BY AN OWNER  OF  SUCH
 EXISTING  PRIVATE  OR MULTIPLE DWELLING IN CONSIDERATION FOR THE FINANC-
 ING, REGULATION, SUPERVISION AND AUDIT OF SUCH LOAN. SUCH CHARGES  SHALL
 BE PAID INTO THE TREASURY OF THE CITY REQUIRING THE CHARGES AND SHALL BE
 PAID AND DEPOSITED IN THE GENERAL FUND OF SUCH CITY.
   7.  IN  MAKING  A  LOAN  UNDER THIS ARTICLE, THE AGENCY SHALL HAVE THE
 POWER TO PARTICIPATE IN A LOAN MADE BY ANY PRIVATE INVESTOR. THE  AGENCY
 MAY  ENTER  INTO  AN  AGREEMENT WITH A PRIVATE INVESTOR TO DEPOSIT FUNDS
 WITH SUCH PRIVATE INVESTOR TO COVER THE AGENCY'S PARTICIPATION IN  LOANS
 TO  OWNERS  OF  ONE TO FOUR UNIT EXISTING PRIVATE AND MULTIPLE DWELLINGS
 WITH SUCH FUNDS ADVANCED BY SUCH PRIVATE  INVESTOR  TO  OWNERS  OF  SUCH
 EXISTING  DWELLINGS. THE PORTION OF THE LOAN FUNDED BY THE AGENCY MAY BE
 EQUAL TO OR SUBORDINATE IN LIEN TO THE PORTION OF THE LOAN FUNDED BY THE
 PRIVATE INVESTOR AND THE NOTE AND CONTRACT MAY CONTAIN SUCH  TERMS  WITH
 RESPECT  TO  INTEREST RATE, IF ANY, AND TIME OF PAYMENT OF PRINCIPAL AND
 INTEREST AS DETERMINED BY THE AGENCY. THE  AGENCY  MAY  MAKE  PROVISION,
 EITHER  IN  THE  MORTGAGE OR MORTGAGES OR BY SEPARATE AGREEMENT, FOR THE
 PERFORMANCE BY THE PRIVATE INVESTOR OF SUCH SERVICES  AS  ARE  GENERALLY
 PERFORMED  BY  A  BANKING  INSTITUTION  WHICH  ITSELF  HOLDS A MORTGAGE,
 INCLUDING, WITHOUT LIMITATION, CONSTRUCTION LOAN ADVANCES,  CONSTRUCTION
 SUPERVISION,  INITIATION  OF  FORECLOSURE  PROCEEDINGS,  PROCUREMENT  OF
 S. 2276--A                          7
 
 INSURANCE, AND ALL OTHER  MATTERS  IN  CONNECTION  WITH  THE  FINANCING,
 SUPERVISION, REGULATION AND AUDIT OF ANY SUCH LOAN. IN ORDER TO MAKE THE
 LOAN  AFFORDABLE  TO  THE  OWNER,  THE  AGENCY  MAY  PROVIDE AN INTEREST
 REDUCTION  SUBSIDY  PURSUANT TO SECTION FOUR HUNDRED EIGHTY-FIVE OF THIS
 ARTICLE, OR MAY PROVIDE THAT ALL OR PART OF THE AGENCY'S PORTION OF  THE
 OUTSTANDING  PRINCIPAL OF ANY SUCH PARTICIPATION LOAN MAY BE SELF-LIQUI-
 DATED OVER A PERIOD OF NOT LESS THAN FIFTEEN YEARS OF CONTINUOUS COMPLI-
 ANCE BY THE OWNER WITH A REGULATORY AGREEMENT  OR  RESTRICTIVE  COVENANT
 WITH  OR  APPROVED  BY THE AGENCY AND UPON THE SATISFACTION OF ANY ADDI-
 TIONAL CONDITIONS SPECIFIED THEREIN.
   § 483. CONDITIONS PRECEDENT TO MAKING LOANS TO OWNERS. 1. NO SUCH LOAN
 SHALL BE MADE TO AN OWNER OF AN EXISTING PRIVATE  OR  MULTIPLE  DWELLING
 UNLESS  SUCH OWNER SHALL COVENANT IN WRITING THAT SO LONG AS ANY PART OF
 SUCH LOAN SHALL REMAIN UNPAID OR ANY REQUIREMENT IMPOSED AS A  CONDITION
 FOR  MAKING  SUCH LOAN THAT SURVIVES THE REPAYMENT OF SUCH LOAN, INCLUD-
 ING, BUT NOT LIMITED TO, IN A REGULATORY AGREEMENT EXECUTED PURSUANT  TO
 SUBDIVISION  TWO  OF  THIS SECTION OR A RESTRICTIVE COVENANT APPROVED BY
 SUCH AGENCY, REMAINS IN EFFECT: (A) THE OWNER OR MANAGING AGENT OR OPER-
 ATOR OF SUCH DWELLING SHALL PERMIT THE DULY AUTHORIZED OFFICERS, EMPLOY-
 EES, AGENTS OR INSPECTORS OF THE AGENCY TO ENTER IN OR UPON AND  INSPECT
 SUCH  DWELLING  AT  ALL  REASONABLE  HOURS;  (B) THE AGENCY BY SUCH DULY
 AUTHORIZED REPRESENTATIVES AS AFORESAID SHALL HAVE FULL POWER TO  INVES-
 TIGATE INTO AND ORDER THE OWNER OF SUCH DWELLING TO FURNISH SUCH REPORTS
 AND INFORMATION AS IT MAY REQUIRE CONCERNING THE CONVERSION OF THE BASE-
 MENT OR CELLAR IN SUCH DWELLING AND ALL OTHER REHABILITATION OR IMPROVE-
 MENTS FUNDED WITH SUCH LOAN AND SHALL HAVE FULL POWER TO AUDIT THE BOOKS
 OF  SAID  OWNER WITH RESPECT TO SUCH MATTERS; AND (C) IF THE BASEMENT OR
 CELLAR TO BE CONVERTED IS IN A MULTIPLE DWELLING, THE OWNER WILL  SUBMIT
 TO THE AGENCY ANNUALLY A STATEMENT OF INCOME AND EXPENSES OF SUCH DWELL-
 ING, IN SUCH FORM AS SHALL BE APPROVED BY THE AGENCY.
   2.  NO  SUCH  LOAN SHALL BE MADE TO AN OWNER OF AN EXISTING PRIVATE OR
 MULTIPLE DWELLING UNLESS THE AGENCY AND SUCH OWNER SHALL HAVE EXECUTED A
 REGULATORY AGREEMENT THAT  INCLUDES  PROTECTIONS  AGAINST  EVICTION  AND
 LIMITATIONS  ON  RENT  INCREASES  APPLICABLE  TO EACH BASEMENT OR CELLAR
 DWELLING UNIT FOR WHICH THE LOAN IS TO BE MADE.
   3. THE AGENCY SHALL HAVE THE POWER  TO  IMPOSE  ADDITIONAL  TERMS  AND
 CONDITIONS PRECEDENT TO MAKE SUCH LOANS.
   § 484. SERVICING  OF  LOANS BY BANKING INSTITUTIONS AND LOAN SERVICING
 COMPANIES. 1. THE AGENCY MAY MAKE PROVISION IN THE NOTE AND LOAN  AGREE-
 MENT OR BY SEPARATE AGREEMENT FOR THE PERFORMANCE BY ONE OR MORE BANKING
 INSTITUTIONS  OF  SUCH  SERVICES  AS ARE GENERALLY PERFORMED BY ANY SUCH
 BANK ITSELF OWNING AND HOLDING SUCH A LOAN AND AS MAY BE APPROVED BY THE
 SUPERINTENDENT OF FINANCIAL SERVICES FOR WHICH SERVICES A BANK MAY  MAKE
 AND  COLLECT  SUCH SERVICE CHARGES AS THE SUPERINTENDENT SHALL PRESCRIBE
 OR APPROVE.
   2. THE AGENCY MAY MAKE PROVISION IN THE NOTE AND LOAN AGREEMENT OR  BY
 SEPARATE  AGREEMENT  FOR THE SERVICING OF SUCH LOANS BY A LOAN SERVICING
 COMPANY OR OTHER QUALIFIED ENTITY, AS DETERMINED BY THE AGENCY, AND SUCH
 SERVICES MAY INCLUDE, BUT NOT BE LIMITED TO, THE COLLECTION OF THE  DEBT
 SERVICES  ON  SUCH  LOANS  AND  THE  ESTABLISHMENT,  ADMINISTRATION, AND
 DISTRIBUTION OF AN ESCROW ACCOUNT FOR THE PAYMENT OF  THE  OWNER'S  REAL
 ESTATE TAXES, SEWER AND WATER RENTS AND FIRE INSURANCE.
   § 485. INTEREST REDUCTION SUBSIDIES. NOTWITHSTANDING THE PROVISIONS OF
 ANY  GENERAL, SPECIAL OR LOCAL LAW, THE CITY, ACTING THROUGH THE AGENCY,
 IS AUTHORIZED TO PROVIDE, OR CONTRACT  TO  PROVIDE,  INTEREST  REDUCTION
 SUBSIDIES  FOR  LOANS MADE BY PRIVATE INVESTORS TO OWNERS OF ONE TO FOUR
 S. 2276--A                          8
 
 UNIT EXISTING PRIVATE OR MULTIPLE DWELLINGS PURSUANT TO PARAGRAPH (A) OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-TWO OF THIS  ARTICLE,  IF
 SUCH  OWNERS WOULD HAVE BEEN ELIGIBLE UNDER THE PROVISIONS OF THIS ARTI-
 CLE FOR A LOAN MADE BY THE CITY PURSUANT TO THIS ARTICLE.
   § 486. MORTGAGE  RECORDING  TAX  EXEMPTION. NOTWITHSTANDING ANY INCON-
 SISTENT PROVISION OF LAW, MORTGAGES TO SECURE A LOAN  MADE  PURSUANT  TO
 THE PROVISIONS OF THIS ARTICLE SHALL BE EXEMPT FROM THE MORTGAGE RECORD-
 ING TAXES IMPOSED BY ARTICLE ELEVEN OF THE TAX LAW.
   § 487. RULES  AND  REGULATIONS.  THE  AGENCY  MAY PROMULGATE RULES AND
 REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   § 488. SOURCE OF FUNDS. THE CITY  MAY  UTILIZE  FEDERAL  GRANT  FUNDS,
 STATE  GRANT  FUNDS  OR ANY MUNICIPAL FUNDS TO MAKE LOANS AND TO PROVIDE
 INTEREST REDUCTION SUBSIDIES PURSUANT TO THIS ARTICLE.
   § 3. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2276--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by Sens. KAVANAGH, CLEARE, FELDER, GOUNARDES, HOYLMAN-SIGAL,
   JACKSON, SEPULVEDA -- read twice and ordered printed, and when printed
   to be committed to the Committee on Judiciary -- committee  discharged
   and  said bill committed to the Committee on Housing, Construction and
   Community Development -- reported favorably from  said  committee  and
   committed  to  the  Committee on Finance -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee  --  recommitted  to  the  Committee  on Housing, Construction and
   Community Development in accordance with Senate  Rule  6,  sec.  8  --
   reported  favorably from said committee and committed to the Committee
   on Finance -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the multiple dwelling law, in relation to establishing a
   program to address the legalization of specified basements and cellars
   and the conversion of other specified basements and cellars in a  city
   with a population of one million or more
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The multiple dwelling law is amended by adding a new  arti-
 cle 7-D to read as follows:
                                ARTICLE 7-D
           LEGALIZATION AND CONVERSION OF BASEMENTS AND CELLARS
 SECTION 288. DEFINITIONS.
         289. BASEMENT AND CELLAR LOCAL LAWS AND REGULATIONS.
         290. TENANT PROTECTIONS IN INHABITED BASEMENTS AND CELLARS.
   §  288.  DEFINITIONS.  AS  USED IN THIS ARTICLE, UNLESS THE CONTEXT OR
 SUBJECT MATTER REQUIRES OTHERWISE, THE FOLLOWING TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   1.  THE TERM "INHABITED BASEMENT OR CELLAR" MEANS A BASEMENT OR CELLAR
 UNLAWFULLY OCCUPIED AS A RESIDENCE BY ONE OR MORE TENANTS ON OR PRIOR TO
 THE EFFECTIVE DATE OF THIS ARTICLE;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03476-04-4
              

 S. 2276--B                          2
 
   2. THE TERM "RENTED" MEANS LEASED, LET, OR HIRED OUT, WITH OR  WITHOUT
 A WRITTEN AGREEMENT; AND
   3. THE TERM "TENANT" MEANS AN INDIVIDUAL TO WHOM AN INHABITED BASEMENT
 OR CELLAR DWELLING UNIT IS RENTED.
   § 289. BASEMENT  AND  CELLAR  LOCAL LAWS AND REGULATIONS.  1. NOTWITH-
 STANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW TO THE CONTRARY, IN A
 CITY WITH A POPULATION OF ONE MILLION OR  MORE,  THE  LOCAL  LEGISLATIVE
 BODY  MAY,  BY LOCAL LAW, PROVIDED THAT HEALTH AND SAFETY ARE PROTECTED,
 ESTABLISH A PROGRAM TO ADDRESS (A) THE LEGALIZATION OF SPECIFIED  INHAB-
 ITED  BASEMENTS  AND CELLARS IN EXISTENCE PRIOR TO THE EFFECTIVE DATE OF
 THIS ARTICLE THROUGH CONVERSION TO LEGAL DWELLING  UNITS,  AND  (B)  THE
 CONVERSION  OF  OTHER SPECIFIED BASEMENTS AND CELLARS IN EXISTENCE PRIOR
 TO THE EFFECTIVE DATE OF THIS ARTICLE TO LEGAL DWELLING UNITS. THE LOCAL
 LAW AUTHORIZED BY THIS SECTION, AND ANY RULES OR REGULATIONS PROMULGATED
 THEREUNDER, SHALL NOT BE SUBJECT TO ENVIRONMENTAL REVIEW, INCLUDING, BUT
 NOT LIMITED TO, ENVIRONMENTAL REVIEW CONDUCTED PURSUANT TO ARTICLE EIGHT
 OF THE ENVIRONMENTAL CONSERVATION LAW AND  ANY  STATE  AND  LOCAL  REGU-
 LATIONS PROMULGATED THEREUNDER.
   2.  THE  PROGRAM ESTABLISHED BY SUCH LOCAL LAW MAY PROVIDE TO AN OWNER
 WHO CONVERTS A BASEMENT OR CELLAR IN ACCORDANCE WITH A LOCAL LAW AUTHOR-
 IZED BY THIS ARTICLE OR WHO OTHERWISE ABATES THE ILLEGAL OCCUPANCY OF  A
 BASEMENT  OR  CELLAR: (A) AMNESTY FROM PROSECUTION FOR ANY VIOLATIONS OF
 THIS CHAPTER, OTHER STATE LAW OR LOCAL LAW  OR  RULES,  AND  THE  ZONING
 RESOLUTION  OF  SUCH CITY RELATING TO THE PREMISES PRIOR TO SUCH CONVER-
 SION, AND (B) RELIEF FROM ANY  OUTSTANDING  CIVIL  JUDGMENTS  ISSUED  IN
 CONNECTION  WITH ANY SUCH VIOLATION OF SUCH LAWS, RULES OR ZONING RESOL-
 UTION ISSUED BEFORE THE EFFECTIVE DATE OF THIS ARTICLE RELATING  TO  THE
 PREMISES  PRIOR  TO  SUCH CONVERSION; PROVIDED, HOWEVER, THAT SUCH LOCAL
 LAW SHALL REQUIRE THAT SUCH AMNESTY OR RELIEF SHALL BE AVAILABLE ONLY TO
 AN OWNER THAT HAS SUBMITTED AN APPLICATION FOR A CONVERSION  BY  A  DATE
 CERTAIN SUBSEQUENT TO THE EFFECTIVE DATE OF SUCH LOCAL LAW AND THAT SUCH
 DATE  SHALL NOT BE LATER THAN TEN YEARS AFTER THE EFFECTIVE DATE OF SUCH
 LOCAL LAW.
   3. (A) SUCH LOCAL LAW MAY SUPERSEDE ANY PROVISION OF LOCAL LAW OR RULE
 TO FACILITATE THE CONVERSION OF A SPECIFIED INHABITED BASEMENT OR CELLAR
 OR OTHER SPECIFIED BASEMENT OR CELLAR IN EXISTENCE PRIOR TO  THE  EFFEC-
 TIVE DATE OF THIS ARTICLE INTO A LAWFUL DWELLING UNIT.  FOR THE PURPOSES
 OF  THIS  PROGRAM, THE LOCAL LAW ADOPTED BY THE LEGISLATIVE BODY OF SUCH
 MUNICIPALITY SHALL BE NO LESS STRINGENT THAN THE RELEVANT  STANDARDS  OR
 SPECIFICATIONS  OF  THE  UNIFORM  FIRE  PREVENTION AND BUILDING CODE AND
 STATE ENERGY CONSERVATION CONSTRUCTION CODE APPLICABLE TO THE CONVERSION
 OF BASEMENTS AND CELLARS TO HABITABLE DWELLING UNITS  IN  MUNICIPALITIES
 OTHER  THAN A CITY WITH A POPULATION OF ONE MILLION OR MORE, UNLESS SUCH
 LEGISLATIVE BODY DETERMINES THAT THE APPLICATION OF  SUCH  STANDARDS  OR
 SPECIFICATIONS  WOULD  PRESENT  PRACTICAL  DIFFICULTIES  THAT IMPEDE THE
 PURPOSES OF THIS ARTICLE AND INCLUDES IN SUCH LOCAL LAW  AN  ALTERNATIVE
 STANDARD  OR  SPECIFICATION  THAT SUCH LEGISLATIVE BODY DETERMINES TO BE
 SUFFICIENT TO PROTECT PUBLIC SAFETY.
   (B) SUCH LOCAL LAW MAY SUPERSEDE  THE  FOLLOWING  PROVISIONS  OF  THIS
 CHAPTER:  SECTIONS TWENTY-SIX, TWENTY-EIGHT, THIRTY, THIRTY-ONE, THIRTY-
 TWO, THIRTY-THREE, THIRTY-FOUR, THIRTY-FIVE,  THIRTY-SIX,  THIRTY-SEVEN,
 FIFTY,  FIFTY-A, FIFTY-ONE, FIFTY-TWO, FIFTY-FOUR, FIFTY-SIX, SIXTY-ONE,
 SIXTY-TWO, SIXTY-THREE, SIXTY-FOUR, SIXTY-FIVE, SIXTY-EIGHT, AND  SEVEN-
 TY-SIX, AND ARTICLES FOUR, FIVE AND SIX.
   (C)  ANY  AMENDMENT  OF  THE ZONING RESOLUTION NECESSARY TO ENACT SUCH
 PROGRAM SHALL BE SUBJECT TO A PUBLIC HEARING AT THE PLANNING  COMMISSION
 S. 2276--B                          3
 
 OF  SUCH  LOCALITY,  AND APPROVAL BY SUCH COMMISSION AND THE LEGISLATIVE
 BODY OF SUCH LOCAL GOVERNMENT, PROVIDED,  HOWEVER,  THAT  IT  SHALL  NOT
 REQUIRE  ENVIRONMENTAL  REVIEW, INCLUDING, NOT LIMITED TO, ENVIRONMENTAL
 REVIEW  CONDUCTED PURSUANT TO ARTICLE EIGHT OF THE ENVIRONMENTAL CONSER-
 VATION LAW AND ANY STATE AND LOCAL REGULATIONS  PROMULGATED  THEREUNDER,
 OR ANY ADDITIONAL LAND USE REVIEW.
   § 290. TENANT  PROTECTIONS IN INHABITED BASEMENTS AND CELLARS.  1. THE
 PROGRAM AUTHORIZED BY THIS ARTICLE SHALL REQUIRE AN APPLICATION TO  MAKE
 ALTERATIONS  TO  LEGALIZE AN INHABITED BASEMENT OR CELLAR BE ACCOMPANIED
 BY A CERTIFICATION INDICATING WHETHER SUCH UNIT WAS RENTED TO  A  TENANT
 ON THE EFFECTIVE DATE OF THIS ARTICLE, NOTWITHSTANDING WHETHER THE OCCU-
 PANCY  OF SUCH UNIT WAS AUTHORIZED BY LAW. AN AGENCY OR OFFICE OF A CITY
 WHERE THE PROGRAM HAS BEEN ESTABLISHED MAY NOT USE SUCH CERTIFICATION AS
 THE BASIS FOR AN ENFORCEMENT ACTION FOR ILLEGAL OCCUPANCY OF SUCH  UNIT,
 PROVIDED  THAT  NOTHING  CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED TO
 LIMIT ANY AGENCY OR OFFICE FROM ISSUING A  VACATE  ORDER  FOR  HAZARDOUS
 CONDITIONS.
   2.  THE  LOCAL  LAW  AUTHORIZED  BY  THIS ARTICLE SHALL PROVIDE THAT A
 TENANT IN OCCUPANCY AT THE TIME OF THE EFFECTIVE DATE  OF  THIS  ARTICLE
 WHO  IS  EVICTED  OR  OTHERWISE REMOVED FROM SUCH UNIT AS A RESULT OF AN
 ALTERATION NECESSARY TO BRING  AN  INHABITED  BASEMENT  OR  CELLAR  INTO
 COMPLIANCE WITH THE STANDARDS ESTABLISHED BY THE LOCAL LAW AUTHORIZED BY
 THIS ARTICLE, SHALL HAVE A RIGHT OF FIRST REFUSAL TO RETURN TO SUCH UNIT
 AS  A  TENANT  UPON ITS FIRST LAWFUL OCCUPANCY AS A LEGAL DWELLING UNIT,
 NOTWITHSTANDING WHETHER THE OCCUPANCY AT THE TIME OF THE EFFECTIVE  DATE
 OF  THIS ARTICLE WAS AUTHORIZED BY LAW. SUCH LOCAL LAW SHALL SPECIFY HOW
 TO DETERMINE PRIORITY WHEN MULTIPLE TENANTS MAY CLAIM SUCH RIGHT.
   3. A TENANT UNLAWFULLY DENIED A RIGHT OF FIRST REFUSAL TO RETURN TO  A
 LEGAL DWELLING UNIT, AS PROVIDED PURSUANT TO THE LOCAL LAW AUTHORIZED BY
 THIS  ARTICLE,  SHALL  HAVE  A CAUSE OF ACTION AGAINST THE OWNER OF SUCH
 DWELLING UNIT IN ANY COURT OF COMPETENT  JURISDICTION  FOR  COMPENSATORY
 DAMAGES  OR  DECLARATORY AND INJUNCTIVE RELIEF AS THE COURT DEEMS NECES-
 SARY IN THE INTERESTS OF JUSTICE, PROVIDED THAT SUCH COMPENSATORY RELIEF
 SHALL NOT EXCEED THE ANNUAL RENTAL CHARGES FOR SUCH LEGAL DWELLING UNIT.
   4. NOTWITHSTANDING THE LOCAL EMERGENCY HOUSING  RENT  CONTROL  ACT  OF
 1962  AS AMENDED, THE LOCAL LAW AUTHORIZED BY THIS ARTICLE SHALL INCLUDE
 PROTECTIONS AGAINST EVICTION AND LIMITATIONS ON RENT INCREASES FOR BASE-
 MENT OR CELLAR DWELLING UNITS THAT UNDERGO LEGALIZATION, INCLUDING LIMI-
 TATIONS ON RENT INCREASES FOR TENANTS RETURNING TO SUCH  UNITS  PURSUANT
 TO THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION.
   § 2. This act shall take effect immediately.