NY State Senate Bill 2025-S2134

Senate Bill S2134

2025-2026 Legislative Session

Relates to requirements for a building owner to refuse to renew a lease under the real estate industry stabilization code

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 15, 2025	referred to housing, construction and community development

co-Sponsors

2025-S2134 (ACTIVE) - Details

See Assembly Version of this Bill:: A1867
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, NYC Ad Cd
Versions Introduced in 2023-2024 Legislative Session:: S2015, A6276

2025-S2134 (ACTIVE) - Summary

Relates to requirements for a building owner to refuse to renew a lease under the real estate industry stabilization code; requires the owner of a building to be demolished to prove that such owner has the financial ability to complete demolition of the building.

2025-S2134 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2134

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to requirements for a building owner to refuse to renew a lease
when the building is to be demolished

 
PURPOSE:

To restore the power of the State Division of Housing and Community
Renewal to ensure that building owners applying for permission to refuse
to renew rent stabilized tenants' leases in order to demolish buildings
and construct new ones are acting in good faith, have received all
required building permits, and have the funds needed to complete demoli-
tion and construction.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends 26-511 of the Administrative Code of the City of New
York to make changes to the requirements for building owners submitting

applications for permission to refuse to renew rent stabilized tenants'
leases due to demolition to DHCR. Owners must prove to the satisfaction
of DHCR that he or she intends in good faith to demolish each building
and construct a new one, have received all necessary demolition and new
building permits from the New York City Department of Buildings, and
have the financial ability to construct the proposed new building.

 
JUSTIFICATION:

A recent State Appellate Court Decision (First NY v DHCR), determined
that the Division of Housing and Community Renewal (DHCR) does not have
the ability to require landlords applying for permission not to renew
rent stabilized tenants' leases in order to demolish a building to show
what they intend to do with the property post-demolition and provide
proof of segregated funds to do the proposed work. The decision was
contrary to longstanding practices by DHCR and what many attorneys
believed was settled case law. The Appellate Court decision makes it
much easier for unscrupulous building owners to push stabilized tenants
out when they have no real intention of demolishing their buildings.
There has long been a problem of certain owners filing phony demolition
applications and this case exacerbates the situation. This bill protects
tenants by once again requiring owners to prove to DHCR that they intend
in good faith to demolish a building and construct a new one, have
received the necessary building permits, and have the funds to construct
a new building.

 
LEGISLATIVE HISTORY:

2023-24:S.2015B/A.6276A - Referred to Committee

 
FISCAL IMPLICATIONS:

To be Determined

 
EFFECTIVE DATE:
Immediately

2025-S2134 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2134
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by Sens. KRUEGER, JACKSON -- 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  administrative code of the city of New York, in
   relation to requirements for a building owner to  refuse  to  renew  a
   lease when the building is to be demolished
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (a) of paragraph 9 of subdivision c of section
 26-511 of the administrative code of the city of New York is amended  to
 read as follows:
   (a)  where  [he  or she] SUCH OWNER ESTABLISHES TO THE SATISFACTION OF
 THE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL  THAT  SUCH  OWNER:  (I)
 intends in good faith to demolish the building [and] AND CONSTRUCT A NEW
 BUILDING;  (II)  has  obtained FROM THE DEPARTMENT OF BUILDINGS a permit
 [therefor from the department of buildings] FOR SUCH DEMOLITION  PROJECT
 AND  APPROVED PLANS FOR THE NEW BUILDING CONSTRUCTION PROJECT; AND (III)
 HAS THE FINANCIAL ABILITY TO COMPLETE SAME; or
   § 2. This act shall take effect immediately; provided that the  amend-
 ments  to  subparagraph  (a)  of paragraph 9 of subdivision c of section
 26-511 of the administrative code of  the  city  of  New  York  made  by
 section  one  of  this act shall expire on the same date as such section
 expires and shall not affect the expiration of such section as  provided
 in section 26-520 of such code.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04702-01-5

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Senate Bill S2134

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Sponsored By

Liz Krueger