NY State Senate Bill 2023-S2482

Senate Bill S2482

2023-2024 Legislative Session

Relates to penalties for owners of property who fail to file a proper or timely rent registration statement

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to housing, construction and community development
Jun 10, 2023	committed to rules
Feb 27, 2023	advanced to third reading amended 2482a
Feb 15, 2023	2nd report cal.
Feb 14, 2023	1st report cal.369
Jan 20, 2023	referred to housing, construction and community development

Votes

- Feb 14, 2023 - Housing, Construction And Community Development Committee Vote
  S2482
  
  8
  
  Aye
  
  2
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: Feb 14, 2023
      
      aye (8)
      
      Brisport
      
      Cleare
      
      Jackson
      
      Kavanagh
      
      May
      
      Myrie
      
      Rivera
      
      Salazar
      
      nay (2)
      
      Borrello
      
      Helming
      
      aye wr (1)
      
      Martins

Bill Amendments

Original

A (Active)

co-Sponsors

2023-S2482 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §12, Emerg Ten Prot Act of 1974; amd §26-516, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6454
2017-2018: S122
2019-2020: S238
2021-2022: S4637

2023-S2482 - Summary

Relates to penalties for owners of property who fail to file a proper or timely rent registration statement.

2023-S2482 - Sponsor Memo

                                 
BILL NUMBER: S2482

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

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

 
PURPOSE:

This bill imposes penalties on property owners who fail to file a proper
or timely rent registration statement.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the opening paragraph of paragraph 1 of subdivision a
of section 12 of section 4 of chapter 576 of the laws of 1974, consti-
tuting the emergency tenant protection act of nineteen seventy-four, as
amended by chapter 116 of the law of 1997, to increase the penalty for a
rent overcharge of a rent-stabilized apartment from three times the

amount of the overcharge to up to five times the amount.

Section 2 amends the opening paragraph of subdivision a of section
26-516 of the administrative code of the city of New York, as amended by
chapter 116 of the laws of 1997, to increase the penalty for a rent
overcharge of a rent-stabilized apartment from three times the amount of
the overcharge to up to five times the amount.

Section 3 sets forth the effective date.

 
JUSTIFICATION:

According to a recent investigation by ProPublica, close to 200,000
units of rent-stabilized apartments are not properly registered with the
state's Division of Housing and Community Renewal (DHCR), putting
hundreds of thousands of tenants at risk of being overcharged on their
rent or illegally evicted.

The investigation noted that "data provided to ProPublica by (DHCR3
which oversees rent-stabilized apartments shows that, as of 2014, New
York City had 839,797 rent-stabililzed apartments registered with the
state." Over the same time period, the New York City Department of Hous-
ing Preservation and Development (HPD) published a survey estimating
that there should be 1,029,918 rent-stabilized units in the city - a gap
that dwarfs the survey's 34,000 unit margin of error.

According to ProPublica, HPD's survey methodology attributes the gap
between their estimate and the number of registered rent-stabilized
units in part on the reduced penalties against landlords who treat
apartments that should be rent-stabilized as market rate.

This bill would increase the penalty for overcharging a rent-stabilized
tenant to up to five times the amount of the overcharge. As under
current law, a landlord could mitigate the civil penalty by demonstrat-
ing by a preponderance of the evidence that the overcharge was neither
willful nor attributable to his or her negligence.

 
LEGISLATIVE HISTORY:

S.4637 OF 2021-2022 (Hoylman): Died in Rules

S.6454 of 2016 (Hoylman): Died in Housing, Construction & Community
Development

A.9192 of 2016 (Rosenthal): Died in Housing

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This bill shall take effect immediately; provided that a. the amendments
to the opening paragraph of paragraph 1 of subdivision a of section 12
of the emergency tenant protection act of nineteen seventy-four shall
expire on the same date as such act expires and shall not affect the
expiration of such act as provided in section 17 of chapter 567 of the
laws of 1974; and b. the amendments to section 26-516 of chapter 4 of
title 26 of the administrative 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.

2023-S2482 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2482
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by  Sens.  HOYLMAN-SIGAL,  KRUEGER -- read twice and ordered
   printed, and when printed to be committed to the Committee on Housing,
   Construction and Community Development
 
 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 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 chapter 36 of the laws of 2019, is 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]  AT  LEAST  THREE  TIMES  THE
 AMOUNT,  NOT  TO EXCEED FIVE times the amount of such overcharge. If the
 owner establishes by a preponderance of the evidence that the overcharge
 was neither willful nor attributable to his OR HER 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 paya-
 ble on a judgment pursuant to section five thousand four  of  the  civil
 practice  law  and  rules. After a complaint of rent overcharge has been
 filed and served on an owner,  the  voluntary  adjustment  of  the  rent
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00964-01-3

 S. 2482                             2
 
 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  will-
 ful.  (i)  Except as to complaints filed pursuant to clause (ii) of this
 paragraph, the legal regulated rent for purposes of determining an over-
 charge, 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  statement)  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 determining legal regulated rent, shall  consider  all
 available rent history which is reasonably necessary to make such deter-
 minations. (ii) As to complaints filed within ninety days of the initial
 registration  of  a  housing accommodation, the legal regulated rent for
 purposes of determining an overcharge shall be deemed  to  be  the  rent
 charged on the date six years prior to the date of the initial registra-
 tion  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.
   §  2. The opening paragraph 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, is 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] AT LEAST THREE TIMES
 THE  AMOUNT,  NOT TO EXCEED FIVE times the amount of such overcharge. If
 the owner establishes by a preponderance of the evidence that the  over-
 charge  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 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 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  statement)  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 determining legal regulated rent, shall  consider  all
 available rent history which is reasonably necessary to make such deter-
 minations. (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
 S. 2482                             3
 
 of the initial registration of the housing  accommodation  (or,  if  the
 housing  accommodation  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 established, such rent shall be established by the division.
   §  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.

co-Sponsors

2023-S2482A (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §12, Emerg Ten Prot Act of 1974; amd §26-516, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6454
2017-2018: S122
2019-2020: S238
2021-2022: S4637

2023-S2482A (ACTIVE) - Summary

Relates to penalties for owners of property who fail to file a proper or timely rent registration statement.

2023-S2482A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2482A

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

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

 
PURPOSE:

This bill imposes penalties on property owners who fail to file a proper
or timely rent registration statement.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the opening paragraph of paragraph 1 of subdivision a
of section 12 of section 4 of chapter 576 of the laws of 1974, consti-
tuting the emergency tenant protection act of nineteen seventy-four, as
amended by chapter 116 of the law of 1997, to increase the penalty for a
rent overcharge of a rent-stabilized apartment from three times the

amount of the overcharge to five times the amount for a first offense,
and ten times the amount for any subsequent overcharges.

Section 2 amends the opening paragraph of subdivision a of section
26-516 of the administrative code of the city of New York, as amended by
chapter 116 of the laws of 1997, to increase the penalty for a rent
overcharge of a rent stabilized apartment from three times the amount of
the overcharge to five times the amount for a first offense, and ten
times the amount for any subsequent overcharges.

Section 3 sets forth the effective date.

 
JUSTIFICATION:

According to a recent investigation by ProPublica, close to 200,000
units of rent-stabilized apartments are not properly registered with the
state's Division of Housing and Community Renewal (DHCR), putting
hundreds of thousands of tenants at risk of being overcharged on their
rent or illegally evicted.

The investigation noted that "data provided to ProPublica by DHCR3 which
oversees rent-stabilized apartments shows that, as of 2014, New York
City had 839,797 rent-stabilized apartments registered with the state."
Over the same time period, the New York City Department of Housing Pres-
ervation and Development (HPD) published a survey estimating that there
should be 1,029,918 rent-stabilized units in the city - a gap that
dwarfs the survey's 34,000 unit margin of error.

According to ProPublica, HPD's survey methodology attributes the gap
between their estimate and the number of registered rent-stabilized
units in part on the reduced penalties against landlords who treat
apartments that should be rent-stabilized as market rate.

This bill would increase the penalty for overcharging a rent-stabilized
tenant to five times the amount of the overcharge, plus interest, for a
landlord's first violation, and ten times the amount of the overcharge,
plus interest, for any subsequent violations. As under current law, a
landlord could mitigate the civil penalty by demonstrating by a prepon-
derance of the evidence that the overcharge was neither willful nor
attributable to his or her negligence.

 
LEGISLATIVE HISTORY:

Senate:

2021-22: S.4637 died in Rules

2015-16: S.6454 died in Housing, Construction & Community Development

Assembly:

2021-22: A.2332- Referred to Housing

2019-20: A.738 -Referred to Housing

2017-18: A.523-8-Reported to Rules

2015-16: A.9192- Referred to Housing; S.6454-Referred to Housing

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This bill shall take effect immediately; provided that a. the amendments
to the opening paragraph of paragraph 1 of subdivision a of section 12
of the emergency tenant protection act of nineteen seventy-four shall
expire on the same date as such act expires and shall not affect the
expiration of such act as provided in section 17 of chapter 567 of the
laws of 1974; and b. the amendments to section 26-516 of chapter 4 of
title 26 of the administrative 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.

2023-S2482A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2482--A
     Cal. No. 369
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by  Sens.  HOYLMAN-SIGAL, JACKSON, KRUEGER -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Housing,  Construction and Community Development -- reported favorably
   from said committee, ordered to first and second  report,  amended  on
   second  report,  ordered  to  a  third reading, and to be reprinted as
   amended, retaining its place in the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00964-05-3
 S. 2482--A                          2
 
 overcharge plus interest at the rate of interest payable on  a  judgment
 pursuant  to  section  five  thousand four of the civil practice law and
 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
 S. 2482--A                          3
 
 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 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.

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Senate Bill S2482

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Sponsored By

Brad Hoylman-Sigal

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Bill Amendments

co-Sponsors

Robert Jackson

Liz Krueger

2023-S2482 - Details

2023-S2482 - Summary

2023-S2482 - Sponsor Memo

2023-S2482 - Bill Text download pdf

co-Sponsors

Robert Jackson

Liz Krueger

2023-S2482A (ACTIVE) - Details

2023-S2482A (ACTIVE) - Summary

2023-S2482A (ACTIVE) - Sponsor Memo

2023-S2482A (ACTIVE) - Bill Text download pdf

Comments