S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  654--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL,  DE LOS SANTOS,  SEAWRIGHT, RAGA,
   CUNNINGHAM -- read once and referred to the Committee  on  Housing  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee

 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 increasing penalties for owners of rent-regulated property
   who overcharge tenants
 
   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] THE OWNER'S  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  payable  on  a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01958-04-5
 A. 654--A                           2
 
 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
 jurisdiction 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
 upon the tenant six or more years prior to the most recent  registration
 A. 654--A                           3
 
 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.