S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6061
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 26, 2025
                                ___________
 
 Introduced  by  M.  of A. HUNTER, JACKSON, GLICK, SIMON -- read once and
   referred to the Committee on Housing
 
 AN ACT to amend the real property law, in relation to prohibiting corpo-
   rate entities, developers, and contractors from converting  single-fa-
   mily homes into a rental property unit

   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 article 11
 to read as follows:
                                ARTICLE 11
                 RENTAL OF SINGLE-FAMILY PRIVATE DWELLINGS
 SECTION 360. LEGISLATIVE FINDINGS.
         361. DEFINITIONS.
         362. SINGLE-FAMILY PRIVATE DWELLING RENTAL RESTRICTED.
         363. ENFORCEMENT.
         364. RULES AND REGULATIONS.
   § 360. LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS THAT IT IS  IN  THE
 INTERESTS  OF  THE STATE TO ENCOURAGE AND PROTECT HOME OWNERSHIP AND THE
 SINGLE-FAMILY  HOME  AS  A  BASIC  HOUSING  OPTION,  TO  ALLOW  FAMILIES
 INCREASED ACCESS TO HOUSING THROUGH HOMEOWNERSHIP, FOR FAMILIES TO BUILD
 EQUITY  AND WEALTH THROUGH THEIR HOUSING, AND TO ENHANCE AND PROMOTE THE
 STABILITY AND WELL-BEING OF FAMILIES AND SOCIETY IN NEW YORK.
   § 361. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "AFFORDABLE HOUSING" MEANS  AT  LEAST  TWO-THIRDS  OF  AN  ENTITY'S
 RENTAL UNITS ARE RENTED TO AN INDIVIDUAL OR FAMILY WITH AN ANNUAL INCOME
 OF  UP  TO  FIFTY PERCENT OF THE AREA MEDIAN INCOME AS DETERMINED BY THE
 UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, ADJUSTED  FOR
 FAMILY SIZE, THAT IS PAYING NO MORE THAN THIRTY PERCENT OF ANNUAL INCOME
 ON RENT.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09826-01-5
 A. 6061                             2
              

 
   2. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL.
   3.  "CORPORATE  ENTITY"  MEANS  ANY  PARTNERSHIP, CORPORATION, LIMITED
 LIABILITY COMPANY, PENSION OR INVESTMENT FUND, OR  TRUST  BUT  DOES  NOT
 INCLUDE  A  NONPROFIT  CORPORATION,  A FAMILY TRUST, OR A FAMILY LIMITED
 LIABILITY COMPANY.
   4. "FAMILY LIMITED LIABILITY COMPANY" MEANS A LIMITED LIABILITY COMPA-
 NY MEETING THE FOLLOWING STANDARDS:
   (A) IT HAS NO MORE THAN FIVE MEMBERS;
   (B) ALL ITS MEMBERS ARE NATURAL PERSONS OR FAMILY TRUSTS;
   (C) ALL OF ITS MEMBERS WHO ARE NATURAL PERSONS OR SPOUSES  OF  NATURAL
 PERSONS  ARE  RELATED  TO  EACH OTHER WITHIN THE THIRD DEGREE OF KINDRED
 ACCORDING TO THE RULES OF CIVIL LAW; AND
   (D) ITS REVENUE FROM RENT OR ANY OTHER MEANS IS PAID DIRECTLY FROM ONE
 MEMBER TO ANOTHER.
   5."FAMILY TRUST" MEANS:
   (A) A TRUST IN WHICH:
   (I) A MAJORITY OF THE CURRENT BENEFICIARIES ARE PERSONS OR SPOUSES  OF
 PERSONS WHO ARE RELATED TO EACH OTHER WITHIN THE THIRD DEGREE OF KINDRED
 ACCORDING TO THE RULES OF CIVIL LAW;
   (II) ALL OF THE CURRENT BENEFICIARIES ARE NATURAL PERSONS OR NONPROFIT
 CORPORATIONS  OR  TRUSTS  DESCRIBED  IN  INTERNAL  REVENUE CODE, SECTION
 170(C), AS AMENDED; AND
   (III) ONE OF THE CURRENT  BENEFICIARIES  OR  A  PERSON  RELATED  TO  A
 CURRENT  BENEFICIARY WITHIN THE THIRD DEGREE OF KINDRED ACCORDING TO THE
 RULES OF CIVIL LAW IS RESIDING AT THE PROPERTY SUBJECT TO THE TRUST; OR
   (B) A CHARITABLE REMAINDER TRUST AS DEFINED IN INTERNAL REVENUE  CODE,
 SECTION  664,  AS  AMENDED,  OR  A CHARITABLE LEAD TRUST AS SET FORTH IN
 INTERNAL REVENUE CODE, SECTION 170(F).
   6. "NOT-FOR-PROFIT CORPORATION"  MEANS  A  NOT-FOR-PROFIT  CORPORATION
 ORGANIZED  UNDER  STATE  NOT-FOR-PROFIT CORPORATION LAW OR QUALIFIED FOR
 TAX-EXEMPT STATUS UNDER FEDERAL TAX LAW THAT WAS  INCORPORATED  FOR  THE
 PURPOSE OF PROVIDING AFFORDABLE HOUSING.
   7.  "PENSION  OR  INVESTMENT FUND" MEANS A PENSION OR EMPLOYEE WELFARE
 BENEFIT FUND, HOWEVER ORGANIZED; A MUTUAL FUND; A LIFE INSURANCE COMPANY
 SEPARATE ACCOUNT; A COMMON TRUST OF A BANK OR OTHER TRUSTEE  ESTABLISHED
 FOR  THE  INVESTMENT AND REINVESTMENT OF MONEY CONTRIBUTED TO IT; A REAL
 ESTATE INVESTMENT TRUST; OR AN INVESTMENT COMPANY AS DEFINED  IN  UNITED
 STATES CODE, TITLE 15, SECTION 80A-3.
   8.  "REAL  ESTATE  DEVELOPER" MEANS A BUSINESS THAT IS ENGAGED IN REAL
 ESTATE DEVELOPMENT OR CONSTRUCTION.
   9. "RESIDENTIAL BUILDING CONTRACTOR" MEANS A PERSON IN THE BUSINESS OF
 BUILDING RESIDENTIAL REAL ESTATE,  OR  OF  CONTRACTING  OR  OFFERING  TO
 CONTRACT  WITH  AN OWNER TO BUILD RESIDENTIAL REAL ESTATE. A RESIDENTIAL
 BUILDING CONTRACTOR MAY ALSO CONTRACT OR OFFER TO CONTRACT WITH AN OWNER
 TO IMPROVE EXISTING RESIDENTIAL REAL ESTATE.
   10. "SINGLE-FAMILY PRIVATE DWELLING"  IS  ANY  BUILDING  OR  STRUCTURE
 DESIGNED AND OCCUPIED EXCLUSIVELY FOR RESIDENCE PURPOSES BY ONE FAMILY.
   §  362. SINGLE-FAMILY PRIVATE DWELLING RENTAL RESTRICTED. 1. NO CORPO-
 RATE ENTITY, REAL ESTATE DEVELOPER, OR RESIDENTIAL  BUILDING  CONTRACTOR
 SHALL:
   (A) DIRECTLY OR INDIRECTLY PURCHASE, OWN, BUILD, ACQUIRE, OR OTHERWISE
 OBTAIN ANY INTEREST IN ANY SINGLE-FAMILY PRIVATE DWELLING; AND
   (B)  SUBSEQUENTLY  CONVERT  SUCH PROPERTY INTO RESIDENTIAL REAL ESTATE
 CONTAINING ONE RENTAL UNIT.
 A. 6061                             3
 
   2. A CORPORATE ENTITY, REAL ESTATE DEVELOPER, OR RESIDENTIAL  BUILDING
 CONTRACTOR  MAY PETITION THE COMMISSIONER FOR AN EXEMPTION FROM SUBDIVI-
 SION ONE OF THIS SECTION. THE COMMISSIONER SHALL ISSUE AN  EXEMPTION  IF
 THE ENTITY MEETS THE FOLLOWING CRITERIA:
   (A)  THE  EXEMPTION  WOULD NOT CONTRADICT THE PURPOSE OF THIS SECTION;
 AND
   (B) THE PETITIONING ENTITY WOULD NOT HAVE AN IMPACT  UPON  THE  AVAIL-
 ABILITY OF AFFORDABLE HOUSING.
   3.  THE  COMMISSIONER SHALL REVIEW ANNUALLY EACH ENTITY, DEVELOPER, OR
 CONTRACTOR THAT IS ISSUED AN EXEMPTION UNDER  SUBDIVISION  TWO  OF  THIS
 SECTION TO ENSURE THAT THE ENTITY CONTINUES TO MEET THE CRITERIA IN SUCH
 SUBDIVISION.  IF  AN ENTITY, DEVELOPER, OR CONTRACTOR FAILS TO MEET SUCH
 CRITERIA, THE COMMISSIONER SHALL WITHDRAW THE EXEMPTION AND  THE  ENTITY
 IS  SUBJECT  TO  ENFORCEMENT  PROCEEDINGS  UNDER  SECTION  THREE HUNDRED
 SIXTY-THREE OF THIS ARTICLE. THE COMMISSIONER SHALL SUBMIT A REPORT WITH
 A LIST OF EACH ENTITY THAT IS ISSUED AN EXEMPTION UNDER SUBDIVISION  TWO
 OF  THIS  SECTION  TO THE CHAIRS OF THE SENATE HOUSING, CONSTRUCTION AND
 COMMUNITY DEVELOPMENT COMMITTEE AND THE ASSEMBLY HOUSING COMMITTEE ANNU-
 ALLY BY THE FIRST OF OCTOBER.
   § 363. ENFORCEMENT. IF THE ATTORNEY GENERAL HAS REASON TO BELIEVE THAT
 A CORPORATE ENTITY,  REAL  ESTATE  DEVELOPER,  OR  RESIDENTIAL  BUILDING
 CONTRACTOR IS IN VIOLATION OF THE PROVISIONS OF THIS ARTICLE, THE ATTOR-
 NEY  GENERAL SHALL COMMENCE AN ACTION IN THE DISTRICT COURT IN WHICH ANY
 REAL PROPERTY RELATIVE TO  SUCH  VIOLATION  IS  SITUATED.  THE  ATTORNEY
 GENERAL  SHALL  FILE  A  NOTICE OF THE PENDENCY OF THE ACTION FOR RECORD
 WITH THE COUNTY CLERK OF EACH COUNTY IN WHICH ANY PORTION OF SAID  PROP-
 ERTY  IS  LOCATED.  IF  THE COURT FINDS THAT THE PROPERTY IN QUESTION IS
 BEING HELD IN VIOLATION OF THIS ARTICLE, IT  SHALL  ENTER  AN  ORDER  SO
 DECLARING.  THE  ATTORNEY  GENERAL  SHALL FILE FOR RECORD ANY SUCH ORDER
 WITH THE COUNTY CLERK FOR THE COUNTY IN WHICH THE PROPERTY  IS  LOCATED.
 THEREAFTER,  THE CORPORATE ENTITY, REAL ESTATE DEVELOPER, OR RESIDENTIAL
 BUILDING CONTRACTOR IN VIOLATION OF THE PROVISIONS OF THIS ARTICLE SHALL
 HAVE A PERIOD OF ONE YEAR FROM THE DATE OF SUCH ORDER TO  DIVEST  ITSELF
 OF  THE PROPERTY. THE AFOREMENTIONED ONE-YEAR LIMITATION PERIOD SHALL BE
 DEEMED A COVENANT RUNNING WITH THE TITLE TO  THE  PROPERTY  AGAINST  THE
 ENTITY,  DEVELOPER, CONTRACTOR, ASSIGNEE, OR SUCCESSOR. ANY PROPERTY NOT
 SO DIVESTED WITHIN THE TIME PRESCRIBED SHALL BE SOLD AT PUBLIC  SALE  IN
 THE  MANNER  PRESCRIBED  BY  LAW  FOR  THE  FORECLOSURE OF A MORTGAGE BY
 ACTION. IN ADDITION, ANY PROSPECTIVE  OR  THREATENED  VIOLATION  MAY  BE
 ENJOINED  BY  AN  ACTION  BROUGHT  BY THE ATTORNEY GENERAL IN THE MANNER
 PROVIDED BY LAW.
   § 364. RULES AND REGULATIONS. THE COMMISSIONER  SHALL  PROMULGATE  ALL
 RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.