senate Bill S57

Relates to statutes of limitations based on notices of deregulation

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 04 / Jan / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Relates to statutes of limitations based on notices of deregulation.

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Bill Details

See Assembly Version of this Bill:
A1682
Versions:
S57
Legislative Cycle:
2011-2012
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Amd §26-504.2, NYC Ad Cd; amd §5, Emerg Ten Prot Act of 1974
Versions Introduced in 2009-2010 Legislative Cycle:
S5851, A7598

Sponsor Memo

BILL NUMBER:S57

TITLE OF BILL:
An act
to amend the administrative code of the city of New York and the
emergency tenant protection act of nineteen seventy-four, in relation
to the statute
of limitations
on notices of deregulation

PURPOSE OR GENERAL IDEA OF THE BILL:
The bill will amend the Emergency Tenant Protection Act of 1974 and
the Administrative Code of New York City. This bill will provide that
the statute of limitations for challenges by a tenant to a high rent
decontrol of a rent-regulated apartment is tolled during the time
that the notice required by statute is not given in order to
decrease the number of rent-regulated units improperly deregulated.

SUMMARY OF SPECIFIC PROVISIONS:
This bill will:

* Provide that the limitations period for challenging deregulation of
a rent-regulated apartment and claim of overcharge is tolled if the
landlord fails to file and serve the appropriate notice; and
* Apply
the sections of the bill to housing accommodations that become vacant
on or after the date this bill would become law.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
The Emergency Tenant Protection Act (EPTA) currently has a four-year
statute of limitations for challenging a legal rent. Also, the New
York City Administrative Code, §26-516, and EPTA, §12, require owners
to keep rent records for four years. This bill adds a new subdivision
(c) of Section 26504.2 of the New York City Administrative Code to
provide that the periods for the examination of rental history and
claims of overcharge and improper deregulation are extended by the
period during which the owner does not comply with notice and filing
requirements. In addition, it amends the ETPA to set forth
requirements for a landlord who seeks to deregulate a unit on grounds
that the rent has exceeded the high rent threshold to file a
statement with the Division of Housing and Community Renewal (DHCR)
and to notify the tenants, and tolls the statute of limitations
during the time the landlord failed to comply with these requirements.

JUSTIFICATION:
The rent laws provide for the deregulation of apartments that become
vacant with a lawful rent of at least $2,000 per month. Since the
right of a tenant to challenge a rent extends only for four years, a
claim of "high rent vacancy deregulation," which is predicated on the
lawful rent for an apartment reaching the $2,000 per month level
becomes unchallengeable after four years. Therefore, an affected
tenant must be given notice not only of his or her right to challenge
the claim of deregulation, but also of the information necessary to
understand the owner's claim and to file a meaningful challenge.
Where the owner fails to provide the required notices for high-rent
exemption, the most effective


method of ensuring that tenants are given a meaningful opportunity to
challenge claims of deregulation and related rent overcharges is to
provide that the period to examine the rental history of an
accommodation not commence until such notices are provided.

PRIOR LEGISLATIVE HISTORY:
2010: S.5851 (Squadron) - Housing, Construction and Community
Development, A.7598 (Jefferies) - Passed Assembly
2009: S.5851 (Squadron) - Rules, A.7598 (Jefferies) - Passed Assembly

FISCAL IMPLICATIONS:
There will be some modest administrative costs associated with
extending the statute of limitations, and with the DHCR maintaining
additional records.

EFFECTIVE DATE:
Bill would take effect immediately; sections 1 and 2 would apply to
housing accommodations that become vacant on or after the date this
bill would become law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   57

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by Sen. SQUADRON -- 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 and the
  emergency tenant protection act of nineteen seventy-four, in  relation
  to the statute of limitations on notices of deregulation

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 26-504.2 of the administrative code of the city of
New York is amended by adding a new subdivision c to read as follows:
  C. NOTWITHSTANDING SECTION 26-516 OF  THIS  CHAPTER  AND  SECTION  TWO
HUNDRED  THIRTEEN-A  OF  THE  CIVIL  PRACTICE LAW AND RULES, THE PERIODS
PROVIDED FOR THEREIN FOR EXAMINATION OF THE RENTAL HISTORY OF THE ACCOM-
MODATION FOR THE DETERMINATION OF AN OVERCHARGE AND WHETHER THE ACCOMMO-
DATION IS SUBJECT TO THIS LAW ARE EXTENDED BY THE  PERIOD  DURING  WHICH
THE OWNER IS NOT IN COMPLIANCE WITH THE REQUIREMENTS OF SUBDIVISION B OF
THIS SECTION.
  S  2. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
protection act of nineteen seventy-four, as amended by chapter 82 of the
laws of 2003, is amended to read as follows:
  (13)  (I) any housing accommodation with a legal regulated rent of two
thousand dollars or more per month at any  time  between  the  effective
date  of this paragraph and October first, nineteen hundred ninety-three
which is or becomes vacant on or after the effective date of this  para-
graph,  or  any housing accommodation with a legal regulated rent of two
thousand dollars or more per month at any time on or after the effective
date of the rent regulation reform act  of  1997  which  is  or  becomes
vacant  on or after the effective date of the rent regulation reform act
of 1997. This exclusion shall  apply  regardless  of  whether  the  next

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00444-01-1

S. 57                               2

tenant  in  occupancy  or any subsequent tenant in occupancy actually is
charged or pays less than two thousand dollars a month. Provided  howev-
er,  that this exclusion shall not apply to housing accommodations which
became  or  become  subject  to  this act (a) by virtue of receiving tax
benefits pursuant to section four hundred twenty-one-a or  four  hundred
eighty-nine  of  the real property tax law, except as otherwise provided
in subparagraph (i) of paragraph (f) of subdivision two of section  four
hundred  twenty-one-a  of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law. This paragraph  shall  not
apply,  however, to or become effective with respect to housing accommo-
dations which the commissioner determines or finds that the landlord  or
any  person acting on his or her behalf, with intent to cause the tenant
to vacate, has engaged in any course  of  conduct  (including,  but  not
limited  to,  interruption or discontinuance of required services) which
interfered with or disturbed  or  was  intended  to  interfere  with  or
disturb  the comfort, repose, peace or quiet of the tenant in his or her
use or occupancy of the housing accommodations and  in  connection  with
such  course of conduct, any other general enforcement provision of this
act shall also apply.
  (II) THE OWNER OF ANY HOUSING ACCOMMODATION THAT  IS  NOT  SUBJECT  TO
THIS  ACT  PURSUANT  TO THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
GRAPH OR PARAGRAPH (N) OF PARAGRAPH 2 OF  SECTION  2  OF  THE  EMERGENCY
HOUSING  RENT  CONTROL  LAW  SHALL GIVE WRITTEN NOTICE CERTIFIED BY SUCH
OWNER TO THE FIRST TENANT OF THAT HOUSING ACCOMMODATION AFTER SUCH HOUS-
ING ACCOMMODATION BECOMES EXEMPT FROM THE PROVISIONS OF THIS ACT OR  THE
EMERGENCY HOUSING RENT CONTROL LAW. SUCH NOTICE SHALL CONTAIN:  THE LAST
REGULATED  RENT;  THE  REASON  THAT  SUCH  HOUSING  ACCOMMODATION IS NOT
SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT CONTROL LAW; A  CALCU-
LATION OF HOW EITHER THE RENTAL AMOUNT CHARGED WHEN THERE IS NO LEASE OR
THE  RENTAL  AMOUNT  PROVIDED FOR IN THE LEASE HAS BEEN DERIVED SO AS TO
REACH TWO THOUSAND DOLLARS OR MORE PER MONTH; A STATEMENT THAT THE  LAST
LEGAL  REGULATED  RENT OR THE MAXIMUM RENT MAY BE VERIFIED BY THE TENANT
BY CONTACTING THE STATE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL,  OR
ANY  SUCCESSOR  THERETO;  AND  THE  ADDRESS AND TELEPHONE NUMBER OF SUCH
AGENCY, OR ANY SUCCESSOR THERETO. SUCH NOTICE SHALL BE SENT BY CERTIFIED
MAIL WITHIN THIRTY DAYS AFTER THE TENANCY COMMENCES OR AFTER THE SIGNING
OF THE LEASE BY BOTH PARTIES, WHICHEVER OCCURS FIRST OR SHALL BE  DELIV-
ERED  TO  THE TENANT AT THE SIGNING OF THE LEASE. IN ADDITION, THE OWNER
SHALL SEND AND CERTIFY TO THE TENANT A COPY OF THE  REGISTRATION  STATE-
MENT  FOR  SUCH  HOUSING  ACCOMMODATION FILED WITH THE STATE DIVISION OF
HOUSING AND COMMUNITY RENEWAL INDICATING THAT SUCH HOUSING ACCOMMODATION
BECAME EXEMPT FROM THE PROVISIONS OF THIS ACT OR THE  EMERGENCY  HOUSING
RENT  CONTROL LAW, WHICH FORM SHALL INCLUDE THE LAST REGULATED RENT, AND
SHALL BE SENT TO  THE  TENANT  WITHIN  THIRTY  DAYS  AFTER  THE  TENANCY
COMMENCES OR THE FILING OF SUCH REGISTRATION, WHICHEVER OCCURS LATER.
  (III)  NOTWITHSTANDING SECTION TWELVE OF THIS ACT AND SECTION 213-A OF
THE CIVIL PRACTICE LAW AND RULES TO THE CONTRARY, THE  PERIODS  PROVIDED
FOR  THEREIN  FOR EXAMINATION OF THE RENTAL HISTORY OF THE ACCOMMODATION
FOR THE DETERMINATION OF AN OVERCHARGE AND WHETHER THE ACCOMMODATION  IS
SUBJECT TO THIS LAW ARE EXTENDED BY THE PERIOD DURING WHICH THE OWNER IS
NOT  IN  COMPLIANCE WITH REQUIREMENTS OF SUBPARAGRAPH (II) OF THIS PARA-
GRAPH.
  S 3. This act shall take effect immediately provided that:
  (a) the amendment to section 26-504.2 of the rent stabilization law of
nineteen hundred sixty-nine made by section one of this act shall expire

S. 57                               3

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;
  (b)  the  amendments to section 5 of section 4 of the emergency tenant
protection act of nineteen seventy-four made by section two of this  act
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  576  of
the laws of 1974, as amended; and
  (c)  the  provisions of this act shall apply to housing accommodations
which became vacant on or after the effective date of this act.

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