senate Bill S5763B

Provides for the implementation of the Roberts v. Tishman Speyer Properties, L.P. decision with regard to rent regulated housing accommodations

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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

  • 14 / Jun / 2011
    • REFERRED TO RULES
  • 22 / Jun / 2011
    • ORDERED TO THIRD READING CAL.1506
  • 22 / Jun / 2011
    • PASSED SENATE
  • 22 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 22 / Jun / 2011
    • REFERRED TO HOUSING
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 24 / Jan / 2012
    • AMEND AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 24 / Jan / 2012
    • PRINT NUMBER 5763A
  • 25 / Jan / 2012
    • AMEND (T) AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 25 / Jan / 2012
    • PRINT NUMBER 5763B
  • 30 / Jan / 2012
    • 1ST REPORT CAL.130
  • 31 / Jan / 2012
    • 2ND REPORT CAL.
  • 06 / Feb / 2012
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2012
    • COMMITTED TO RULES

Summary

Provides for the implementation of the Roberts v. Tishman Speyer Properties, L.P. decision with regard to rent regulated housing accommodations; and extends until June 1, 2015, the deadline for local legislative action providing tax incentives for the rehabilitation or improvement of multiple dwellings.

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Bill Details

Versions:
S5763
S5763A
S5763B
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
New York City Administrative Code
Laws Affected:
Amd §§26-504.1, 26-504.2, 11-243 & 26-504, add §26-504.4, NYC Ad Cd; add §5-b, amd §5, Emerg Ten Prot Act of 1974; amd §489, RPT L

Votes

5
3
5
Aye
3
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Housing, Construction and Community Development committee vote details

Sponsor Memo

BILL NUMBER:S5763B REVISED 2/14/12

TITLE OF BILL: An act to amend the administrative code of the city of
New York, the emergency tenant protection act of nineteen seventy-four
and the real property tax law, in relation to rent regulated housing
accommodations; and to amend the real property tax law, in relation to
extending the authorization to grant exemptions from taxation for
certain alterations and improvements to multiple dwellings

PURPOSE: This bill would provide the opportunity for property owners
to repay to the City of New York the amount of the J-51 benefits that
they would have received from the City and to waive the amount of
future benefits to which they would otherwise be entitled. In addition
this bill would allow for resolution to and implementation of
consequences brought about from the Roberts decision.

SUMMARY OF PROVISIONS: This bill would define the class of apartments
affected by the Roberts decision and provide two alternatives to
address the Roberts decision.

Under the first option the owner of an affected unit would retain the
J-51 benefits they received and the affected apartments are rent
stabilized, with base rent being set as of October 22, 2005 with all
subsequent standard rate stabilization increases permitted. Under the
second option available the owner would pay back. all pre October 22,
2009 J-51 benefits they received. Under this scenario the affected
apartments would be rent stabilized until the remaining J-51 benefits
expire. The base rents under this scenario would be set as of October
22, 2009 with all subsequent standard rent stabilization increases
permitted.

Under either option the failure by the owner to use forms, riders,
notices, registrations etc. that would not have been utilized when the
apartments were thought to be non-stabilized will not preclude rent
increases or deregulation upon the expiration of the benefits.

The bill does require that owners use the required rent stabilization
forms, riders, notices, registrations etc. going forward. The rents
for formerly rent controlled apartments are calculated using a
standard DHCR formula, including a standard comparability four year
rule component, but in not prior to October 22, 2005.

This bill would also establish applicable procedures for
implementation under which an owner may obtain an accounting from the
City as to the amount of the potential J-51 payback. In addition the
owner shall be required to inform all affected tenants that they are
Roberts tenants and of the refund or payback alternatives described
above. The owner will be required to give the tenant an opportunity to
respond and parties may attempt to reach a negotiated settlement,
which shall be binding on both parties if consummated.

The bill also provides for a 4 year extension of the J-51 program.

JUSTIFICATION: The Roberts decision left many important issues
affecting both tenants and landlords unresolved. However, in its
decision the Court of Appeals declared if its decision created
"unacceptable burdens," relief from those burdens would be a matter


for the Legislature. The decision has produced unacceptable burdens
and this legislation is a response to that invitation. Building owners
who deregulated apartments in the past seeking clarity would be given
the opportunity to return to the City all of the J-51 tax benefits
received for their buildings and to waive any future benefits which
they otherwise would be due or to retain those same benefits. Base
rate structures would be established and owners would be insulated
from any and all liability resulting from Roberts for the apartments
that were deregulated and tenants, under certain scenarios would
retain rent stabilization rights for defined periods.

This legislation would create market certainty going forward and allow
for parties to avoid many years of costly litigation pending.
Building owners who, in good faith, deregulated thousands of
apartments in New York City while receiving these tax benefits are
subject, as the result of Roberts, to potential rent rollbacks and
potentially enormous rent overcharge claims by thousands of tenants
who entered into unregulated leases based on market prices with these
landlords. The outstanding claims of these tenants undermine the
financial well being of many buildings whose mortgage financing are
based and evaluated upon rent roll and who are assessed by the City of
New York based upon the previously accepted practice of allowing for
deregulation in buildings receiving J-51 benefits. Since 1993 over
80,000 apartments throughout the City were deregulated as the result
of high rent vacancy provisions and several thousand more have been
deregulated through the process of high income, high rent deregulation
none of which were challenged over the years by tenants or their
representatives. The Citizens Housing and Planning Council estimates
that between 19,000 and 37,000 deregulated units are in buildings that
have received J-51 benefits. As a result many of these properties are
facing financial risk as are city revenues. If Roberts is not remedied
tenants who occupied these unregulated units, under no expectation of
receiving rent regulatory protection, would receive a windfall. These
tenants entered into their leases voluntarily often at levels in
excess of the median rent regulated lease levels in the City. Without
a legislative solution the subject properties will continue in a state
of financial uncertainty which has effectively made many of these
buildings unmarketable until such time as questions with regard to
their future financial well being can be resolved. These uncertainties
are not beneficial to any of the stakeholders. A legisla- tive
solution is needed and this bill provides for a fair and equitable
resolution of the issues discussed herein.

PRIOR LEGISLATIVE HISTORY: S.5763-2011- passed Senate.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This bill takes effect immediately.

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

                                 5763--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 14, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules  --  recommitted  to
  the  Committee  on  Housing, Construction and Community Development in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT  to  amend  the administrative code of the city of New York, the
  emergency tenant protection act of nineteen seventy-four and the  real
  property  tax  law,  in  relation  to  rent regulated housing accommo-
  dations; and to amend the  real  property  tax  law,  in  relation  to
  extending  the  authorization  to  grant  exemptions from taxation for
  certain alterations and improvements to multiple dwellings

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

  Section  1. Section 26-504.1 of the administrative code of the city of
New York, as amended by section 35 of part B of chapter 97 of  the  laws
of 2011, is amended to read as follows:
  S  26-504.1  Exclusion  of accommodations of high income renters. Upon
the issuance of an order by the division, "housing accommodations" shall
not include housing accommodations which: (1) are  occupied  by  persons
who have a total annual income, as defined in and subject to the limita-
tions  and  process  set  forth  in section 26-504.3 of this chapter, in
excess of the deregulation  income  threshold,  as  defined  in  section
26-504.3  of this chapter, for each of the two preceding calendar years;
and (2) have a legal regulated monthly rent that equals or  exceeds  the
deregulation  rent  threshold,  as  defined  in section 26-504.3 of this
chapter. Provided, however, that this exclusion shall not apply to hous-
ing accommodations which became or become subject to  this  law  (a)  by
virtue  of receiving tax benefits pursuant to section four hundred twen-
ty-one-a or four hundred eighty-nine  of  the  real  property  tax  law,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13151-05-2

S. 5763--B                          2

except  as  otherwise  provided  in subparagraph (i) of paragraph (f) of
subdivision two of section four hundred twenty-one-a of the real proper-
ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
law.    NOTWITHSTANDING THE FOREGOING, HOUSING ACCOMMODATIONS WHICH WERE
SUBJECT TO THIS CHAPTER OR CHAPTER THREE OF THIS TITLE IMMEDIATELY PRIOR
TO THE COMMENCEMENT OF THE RECEIPT OF TAX BENEFITS PURSUANT  TO  SECTION
FOUR  HUNDRED  EIGHTY-NINE  OF THE REAL PROPERTY TAX LAW OR WHICH ARE OR
WOULD BE SUBJECT TO THIS CHAPTER PURSUANT TO SUCH RULING SHALL BE DEEMED
TO BE HOUSING ACCOMMODATIONS WHICH BECAME  OR  BECOME  SUBJECT  TO  THIS
CHAPTER  BY  VIRTUE  OF  RECEIVING TAX BENEFITS PURSUANT TO SUCH SECTION
FOUR HUNDRED EIGHTY-NINE BUT ONLY FOR THE DURATION OF SUCH BENEFITS  AND
SHALL  BE  EXCLUDED  FROM REGULATION THEREAFTER; PROVIDED, HOWEVER, THAT
SUCH EXCLUSION  SHALL  BE  APPLICABLE  TO  SUCH  HOUSING  ACCOMMODATIONS
SUBJECT  TO THE RULING OF THE STATE COURT OF APPEALS IN ROBERTS V. TISH-
MAN SPEYER PROPERTIES, L.P., 13 NY3D 270, ONLY WHERE THE OWNER  OF  SUCH
HOUSING  ACCOMMODATIONS  HAS MADE FULL PAYMENT TO THE CITY IN ACCORDANCE
WITH THE PROVISIONS OF SUBDIVISION SEVENTEEN  OF  SECTION  FOUR  HUNDRED
EIGHTY-NINE  OF  THE REAL PROPERTY TAX LAW AND SUBDIVISION EE OF SECTION
11-243 OF THIS CODE. FOR PURPOSES OF  THIS  SECTION,  "HOUSING  ACCOMMO-
DATIONS  SUBJECT  TO THE RULING OF THE STATE COURT OF APPEALS IN ROBERTS
V. TISHMAN SPEYER PROPERTIES, L.P., 13  NY3D  270"  SHALL  MEAN  HOUSING
ACCOMMODATIONS  IN  BUILDINGS THAT WERE SUBJECT TO THIS CHAPTER, THE NEW
YORK  CITY  RENT  AND  REHABILITATION  LAW,  OR  THE  EMERGENCY   TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR PRIOR TO THE RECEIPT OF BENEFITS
PURSUANT  TO  SECTION  FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX
LAW, EXCEPT AS TO (I) THOSE HOUSING ACCOMMODATIONS RENTED AFTER SAID TAX
BENEFITS HAD EXPIRED, (II) HOUSING ACCOMMODATIONS RENTING DURING THE TAX
BENEFIT PERIOD WHERE EACH LEASE HAD THE REQUISITE DEREGULATION NOTICE OR
(III) THOSE HOUSING  ACCOMMODATIONS  DEREGULATED  BY  ADMINISTRATIVE  OR
COURT  ORDER,  WHICH  HOUSING  ACCOMMODATIONS  SHALL  REMAIN DEREGULATED
DESPITE SUCH RULING.
  FOR HOUSING ACCOMMODATIONS IN BUILDINGS WHICH WERE, ARE OR BECOME  THE
SUBJECT  OF CONVERSIONS PURSUANT TO SECTION THREE HUNDRED FIFTY-TWO-EEEE
OF THE GENERAL BUSINESS LAW, SUCH HOUSING ACCOMMODATIONS  SHALL  NOT  BE
DEEMED  TO  BE  HOUSING ACCOMMODATIONS WHICH BECAME OR BECOME SUBJECT TO
THIS CHAPTER BY VIRTUE OF RECEIVING TAX  BENEFITS  PURSUANT  TO  SECTION
FOUR  HUNDRED  EIGHTY-NINE OF THE REAL PROPERTY TAX LAW AND THE OWNER OR
PROPRIETARY LESSEE OF SUCH HOUSING ACCOMMODATIONS SHALL NOT BE  REQUIRED
TO ACT IN ACCORDANCE WITH SUCH SECTIONS OF THE REAL PROPERTY TAX LAW AND
THIS CODE TO QUALIFY AS HOUSING ACCOMMODATIONS NOT SUBJECT TO THIS CHAP-
TER BY VIRTUE OF RECEIVING SUCH TAX BENEFITS.
  S  2.  Subdivision a of section 26-504.2 of the administrative code of
the city of New York, as amended by section 12 of part B of  chapter  97
of the laws of 2011, is amended to read as follows:
  a.  (1) "Housing accommodations" shall not include: any housing accom-
modation which becomes vacant on or after April first, nineteen  hundred
ninety-seven  and  before the effective date of the rent act of 2011 and
where at the time the tenant  vacated  such  housing  accommodation  the
legal regulated rent was two thousand dollars or more per month; or, for
any  housing  accommodation  which  is or becomes vacant on or after the
effective date of the rent regulation reform act of 1997 and before  the
effective  date  of the rent act of 2011, with a legal regulated rent of
two thousand dollars or more  per  month.  This  exclusion  shall  apply
regardless  of  whether  the  next tenant in occupancy or any subsequent
tenant in occupancy is charged or pays less than two thousand dollars  a
month;  or, for any housing accommodation with a legal regulated rent of

S. 5763--B                          3

two thousand five hundred dollars or more per month at any  time  on  or
after  the  effective  date of the rent act of 2011, which is or becomes
vacant on or after such  effective  date.  This  exclusion  shall  apply
regardless  of  whether  the  next tenant in occupancy or any subsequent
tenant in occupancy actually is charged or pays less than  two  thousand
five hundred dollars a month. Provided however, that an exclusion pursu-
ant  to this subdivision shall not apply to housing accommodations which
became or become subject to this law (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.  NOTWITHSTANDING THE FORE-
GOING,  HOUSING  ACCOMMODATIONS  WHICH  WERE  SUBJECT TO THIS CHAPTER OR
CHAPTER THREE OF THIS TITLE IMMEDIATELY PRIOR TO THE COMMENCEMENT OF THE
RECEIPT OF TAX BENEFITS PURSUANT TO SECTION FOUR HUNDRED EIGHTY-NINE  OF
THE REAL PROPERTY TAX LAW OR WHICH ARE OR WOULD BE SUBJECT TO THIS CHAP-
TER PURSUANT TO SUCH RULING SHALL BE DEEMED TO BE HOUSING ACCOMMODATIONS
WHICH  BECAME  OR  BECOME SUBJECT TO THIS CHAPTER BY VIRTUE OF RECEIVING
TAX BENEFITS PURSUANT TO SUCH SECTION FOUR HUNDRED EIGHTY-NINE BUT  ONLY
FOR  THE DURATION OF SUCH BENEFITS AND SHALL BE EXCLUDED FROM RENT REGU-
LATION THEREAFTER; PROVIDED,  HOWEVER,  THAT  SUCH  EXCLUSION  SHALL  BE
APPLICABLE  TO  SUCH HOUSING ACCOMMODATIONS SUBJECT TO THE RULING OF THE
STATE COURT OF APPEALS IN ROBERTS V.  TISHMAN SPEYER  PROPERTIES,  L.P.,
13  NY3D  270,  ONLY  WHERE THE OWNER OF SUCH HOUSING ACCOMMODATIONS HAS
MADE FULL PAYMENT TO THE CITY  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF
SUBDIVISION  SEVENTEEN  OF  SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL
PROPERTY TAX LAW AND SUBDIVISION EE OF SECTION 11-243 OF THIS CODE.  FOR
PURPOSES  OF THIS SECTION, "HOUSING ACCOMMODATIONS SUBJECT TO THE RULING
OF THE STATE COURT OF APPEALS IN ROBERTS V. TISHMAN  SPEYER  PROPERTIES,
L.P.,  13  NY3D 270" SHALL MEAN HOUSING ACCOMMODATIONS IN BUILDINGS THAT
WERE SUBJECT TO THIS CHAPTER, THE NEW YORK CITY RENT AND  REHABILITATION
LAW,  OR  THE  EMERGENCY  TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR
PRIOR TO THE RECEIPT OF BENEFITS PURSUANT TO SECTION FOUR HUNDRED EIGHT-
Y-NINE OF THE REAL PROPERTY TAX LAW, EXCEPT  AS  TO  (I)  THOSE  HOUSING
ACCOMMODATIONS  RENTED AFTER SAID TAX BENEFITS HAD EXPIRED, (II) HOUSING
ACCOMMODATIONS RENTING DURING THE TAX BENEFIT PERIOD  WHERE  EACH  LEASE
HAD  THE  REQUISITE  DEREGULATION NOTICE OR (III) THOSE HOUSING ACCOMMO-
DATIONS DEREGULATED BY ADMINISTRATIVE  OR  COURT  ORDER,  WHICH  HOUSING
ACCOMMODATIONS SHALL REMAIN DEREGULATED DESPITE SUCH RULING.
  FOR  HOUSING ACCOMMODATIONS IN BUILDINGS WHICH WERE, ARE OR BECOME THE
SUBJECT OF CONVERSIONS PURSUANT TO SECTION THREE HUNDRED  FIFTY-TWO-EEEE
OF  THE  GENERAL  BUSINESS LAW, SUCH HOUSING ACCOMMODATIONS SHALL NOT BE
DEEMED TO BE HOUSING ACCOMMODATIONS WHICH BECAME OR  BECOME  SUBJECT  TO
THIS  CHAPTER  BY  VIRTUE  OF RECEIVING TAX BENEFITS PURSUANT TO SECTION
FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW AND THE  OWNER  OR
PROPRIETARY  LESSEE OF SUCH HOUSING ACCOMMODATIONS SHALL NOT BE REQUIRED
TO ACT IN ACCORDANCE WITH SUCH SECTIONS OF THE REAL PROPERTY TAX LAW AND
THIS CODE TO QUALIFY AS HOUSING ACCOMMODATIONS NOT SUBJECT TO THIS CHAP-
TER BY VIRTUE OF RECEIVING TAX BENEFITS.
  (2) This section shall not apply, however, to or become effective with
respect to housing accommodations 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, 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

S. 5763--B                          4

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 law shall also apply.
  S  3.  The  administrative  code of the city of New York is amended by
adding a new section 26-504.4 to read as follows:
  S 26-504.4 ENFORCEMENT AND PROCEDURES FOR IMPLEMENTING THE DECISION OF
THE STATE COURT OF APPEALS IN  ROBERTS  V.  TISHMAN  SPEYER  PROPERTIES,
L.P., 13 NY3D 270. FOR PURPOSES OF THIS SECTION, "HOUSING ACCOMMODATIONS
SUBJECT  TO THE RULING OF THE STATE COURT OF APPEALS IN ROBERTS V. TISH-
MAN SPEYER PROPERTIES, L.P., 13 NY3D 270" SHALL  MEAN  HOUSING  ACCOMMO-
DATIONS  IN  BUILDINGS  THAT  WERE SUBJECT TO THIS CHAPTER, THE NEW YORK
CITY RENT AND REHABILITATION LAW, AND/OR THE EMERGENCY TENANT PROTECTION
ACT OF NINETEEN SEVENTY-FOUR PRIOR TO THE RECEIPT OF  BENEFITS  PURSUANT
TO SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW, EXCEPT
AS  TO  (I)  THOSE HOUSING ACCOMMODATIONS RENTED AFTER SAID TAX BENEFITS
HAD EXPIRED, (II) HOUSING ACCOMMODATIONS RENTING DURING THE TAX  BENEFIT
PERIOD  WHERE  EACH LEASE HAD THE REQUISITE DEREGULATION NOTICE OR (III)
THOSE HOUSING ACCOMMODATIONS  DEREGULATED  BY  ADMINISTRATIVE  OR  COURT
ORDER,  WHICH  HOUSING  ACCOMMODATIONS  SHALL REMAIN DEREGULATED DESPITE
SUCH RULING.
  A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  EMERGENCY
TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THE CIVIL PRACTICE LAW
AND  RULES TO THE CONTRARY, AND SUBJECT TO THE PROVISIONS OF SUBDIVISION
C OF THIS SECTION, ANY HOUSING ACCOMMODATION THAT IS OR WOULD BE SUBJECT
TO REGULATION UNDER THIS CHAPTER AS A RESULT  OF  THE  DECISION  OF  THE
STATE COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., 13
NY3D 270, SHALL BE SUBJECT TO THE FOLLOWING:
  (1)  THE  LEGAL  REGULATED RENT FOR A HOUSING ACCOMMODATION SUBJECT TO
THIS SECTION SHALL BE (I) THE RENT CHARGED AND  PAID  FOR  SUCH  HOUSING
ACCOMMODATION  ON  OCTOBER TWENTY-SECOND, TWO THOUSAND FIVE, OR PROVIDED
FOR IN THE LEASE IN EFFECT ON SUCH DATE, WHICHEVER IS GREATER, PLUS  ALL
SUBSEQUENT  ADJUSTMENTS  AND  INCREASES,  INCLUDING  BUT  NOT LIMITED TO
INCREASES ATTRIBUTABLE TO VACANCIES, MAJOR CAPITAL  IMPROVEMENTS,  INDI-
VIDUAL  APARTMENT IMPROVEMENTS, RENT GUIDELINES BOARD ORDERS, SURCHARGES
OR ANY OTHER INCREASES THAT WERE NOT PRECLUDED BY AN ORDER OF THE  DIVI-
SION  OF  HOUSING  AND  COMMUNITY  RENEWAL AS TO OTHER REGULATED HOUSING
ACCOMMODATIONS IN THE  BUILDING  AND  THAT  WOULD  HAVE  BEEN  PERMITTED
NOTWITHSTANDING  THE  ABSENCE  OR  OMISSION  OF ANY FORM, RIDER, NOTICE,
REGISTRATION, APPLICATION OR ANY OTHER DOCUMENT  THAT  WOULD  HAVE  BEEN
REQUIRED  OR  OTHERWISE  PROVIDED;  IF THERE IS NO TENANT OR NO LEASE IN
EFFECT ON OCTOBER TWENTY-SECOND, TWO THOUSAND FIVE, THEN THE FIRST  RENT
CHARGED AND PAID OR PROVIDED FOR IN THE FIRST LEASE IN EFFECT AFTER SAID
DATE,  WHICHEVER  IS GREATER; OR (II) THE LEGAL REGULATED RENT AGREED TO
BY THE TENANT PURSUANT TO PARAGRAPH FIVE OF THIS SUBDIVISION;  OR  (III)
SUCH  OTHER  AMOUNT  AS  AGREED  TO BY THE OWNER AND TENANT IN A WRITING
EXECUTED BY THE PARTIES AFTER  RECEIPT  BY  THE  TENANT  OF  THE  NOTICE
REQUIRED BY PARAGRAPH THREE OF THIS SUBDIVISION AND PAYMENT BY THE OWNER
OF THE REFUND AMOUNT, IF ANY, PROVIDED IN SUCH AGREEMENT.
  (2) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL OFFER TO REFUND
TO  THE TENANT RESIDING IN SUCH HOUSING ACCOMMODATION ALL RENT COLLECTED
FROM SUCH TENANT IN EXCESS OF THE LEGAL  REGULATED  RENT  CALCULATED  IN
ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION.
  (3) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AN OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL PROVIDE WRITTEN

S. 5763--B                          5

NOTICE  TO  THE  CURRENT TENANT OF THE HOUSING ACCOMMODATION OF: (I) THE
FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT  TO  THIS  CHAPTER  AS  A
RESULT OF THE DECISION OF THE STATE COURT OF APPEALS IN ROBERTS V. TISH-
MAN  SPEYER  PROPERTIES,  L.P.,  13  NY3D 270; (II) A CALCULATION OF THE
LEGAL REGULATED RENT FOR THE HOUSING ACCOMMODATION  IN  ACCORDANCE  WITH
THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION; AND (III) THE TOTAL
AMOUNT TO BE REFUNDED PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION.
  (4) AN OWNER WHO MAKES A GOOD FAITH CALCULATION OF THE LEGAL REGULATED
RENT  AND  MAKES  A  REFUND OFFER IN ACCORDANCE WITH THE REQUIREMENTS OF
PARAGRAPH TWO OF THIS SUBDIVISION SHALL NOT BE SUBJECT  TO  ANY  OF  THE
OVERCHARGE  PENALTIES,  INCLUDING  INTEREST AND TREBLE DAMAGES, PROVIDED
FOR IN SECTION 26-516 OF THIS CHAPTER.
  (5) THE TENANT SHALL BE OBLIGATED TO RESPOND WITHIN  THIRTY-FIVE  DAYS
OF THE MAILING OF SUCH NOTICE TO THE TENANT. WHERE A TENANT OF A HOUSING
ACCOMMODATION  SUBJECT  TO  THE  PROVISIONS  OF THIS SECTION CONSENTS IN
WRITING TO THE LEGAL REGULATED RENT AND REFUND AMOUNT, IF ANY, SET FORTH
BY THE OWNER IN THE NOTICE REQUIRED BY PARAGRAPH THREE OF THIS  SUBDIVI-
SION,  AND  THE  OWNER MAKES THE REQUIRED REFUND TO THE TENANT, OR AFTER
THE NOTICE REQUIRED BY SUCH PARAGRAPH THE OWNER AND TENANT ENTER INTO  A
WRITTEN  AGREEMENT  PROVIDING  FOR  A DIFFERENT LEGAL REGULATED RENT AND
REFUND AMOUNT AND THE OWNER MAKES THE REFUND, IF ANY, AGREED TO  BY  THE
PARTIES,  THEN NEITHER SUCH LEGAL REGULATED RENT NOR SUCH REFUND AMOUNT,
IF ANY, SHALL THEREAFTER BE SUBJECT TO CHALLENGE BY THE  TENANT  OR  ANY
SUBSEQUENT  TENANT  OF THE HOUSING ACCOMMODATION. HOWEVER, IF THE AGREE-
MENT ENTERED INTO PURSUANT TO THIS PARAGRAPH REQUIRES THE TENANT  VACAT-
ING  THE  SUBJECT  HOUSING  ACCOMMODATION  OR  ENCOMPASSES  SURRENDER OF
POSSESSION OF THE HOUSING ACCOMMODATION BY THE TENANT, IT SHALL  NOT  BE
BINDING UPON SUBSEQUENT TENANTS.
  (6) IN NO EVENT SHALL A TENANT WHO FILES A COMPLAINT WITH THE DIVISION
OF  HOUSING AND COMMUNITY RENEWAL SEEKING RELIEF UNDER THE PROVISIONS OF
THIS SECTION BE ENTITLED TO A REFUND FOR RENT PAYMENTS  MADE  MORE  THAN
FOUR YEARS BEFORE THE COMPLAINT IS FILED.
  (7) FOR ANY HOUSING ACCOMMODATION THAT IS OR WOULD BE SUBJECT TO REGU-
LATION  AS  A  RESULT  OF  THE DECISION OF THE STATE COURT OF APPEALS IN
ROBERTS V. TISHMAN SPEYER PROPERTIES, 13 NY3D 270, AND WHERE  THE  OWNER
MAKES PAYMENT IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION SEVENTEEN
OF  SECTION  FOUR  HUNDRED  EIGHTY-NINE OF THE REAL PROPERTY TAX LAW AND
SUBDIVISION EE OF SECTION 11-243 OF THIS CODE, THE LEGAL REGULATED  RENT
FOR  SUCH  HOUSING  ACCOMMODATION  SHALL  BE THE AMOUNT SET FORTH IN THE
LEASE IN EFFECT ON OCTOBER TWENTY-SECOND, TWO THOUSAND NINE; IF THERE IS
NO LEASE IN EFFECT ON SAID DATE, THEN THE AMOUNT SET FORTH IN THE  FIRST
LEASE  IN  EFFECT  AFTER  SAID DATE, PLUS ALL SUBSEQUENT ADJUSTMENTS AND
INCREASES, INCLUDING BUT NOT LIMITED TO INCREASES ATTRIBUTABLE TO VACAN-
CIES, MAJOR CAPITAL  IMPROVEMENTS,  INDIVIDUAL  APARTMENT  IMPROVEMENTS,
RENT  GUIDELINES  BOARD  ORDERS,  SURCHARGES OR ANY OTHER INCREASES THAT
WERE NOT PRECLUDED BY AN ORDER OF THE DIVISION OF HOUSING AND  COMMUNITY
RENEWAL AS TO OTHER REGULATED HOUSING ACCOMMODATIONS IN THE BUILDING AND
THAT  WOULD  HAVE BEEN PERMITTED NOTWITHSTANDING THE ABSENCE OR OMISSION
OF ANY FORM, RIDER, NOTICE, REGISTRATION, APPLICATION OR ANY OTHER DOCU-
MENT THAT WOULD HAVE BEEN REQUIRED OR OTHERWISE PROVIDED.
  B. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  EMERGENCY
TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THE CIVIL PRACTICE LAW
AND  RULES TO THE CONTRARY, AND SUBJECT TO THE PROVISIONS OF SUBDIVISION
C OF THIS SECTION, ANY HOUSING ACCOMMODATION THAT, PRIOR TO ITS VACANCY,
WAS SUBJECT TO REGULATION UNDER CHAPTER THREE OF THIS TITLE AND WHICH IS
OR WOULD BE SUBJECT TO REGULATION UNDER THIS CHAPTER AS A RESULT OF  THE

S. 5763--B                          6

DECISION  OF  THE  STATE  COURT OF APPEALS IN ROBERTS V.  TISHMAN SPEYER
PROPERTIES, L.P., 13 NY3D 270, SHALL BE SUBJECT TO THE FOLLOWING:
  (1)  WHERE A HOUSING ACCOMMODATION PRIOR TO ITS VACANCY WAS SUBJECT TO
REGULATION UNDER CHAPTER THREE OF THIS TITLE AND WHICH IS  OR  WOULD  BE
SUBJECT  TO REGULATION UNDER THIS CHAPTER AS A RESULT OF THE DECISION OF
THE STATE COURT OF APPEALS IN ROBERTS V.    TISHMAN  SPEYER  PROPERTIES,
L.P.,  13 NY3D 270, THE INITIAL LEGAL REGULATED RENT SHALL BE (I) DETER-
MINED IN ACCORDANCE WITH THE  METHODOLOGY  USED  FOR  FAIR  MARKET  RENT
APPEALS,  PROVIDED,  HOWEVER,  THAT  THE  RENTS IN EFFECT FOR COMPARABLE
APARTMENTS, WHETHER OR NOT REGULATED, ON THE DATE FOUR  YEARS  PRIOR  TO
THE  DATE  OF  THE  COMMENCEMENT  OF  THE FIRST LEASE EXECUTED AFTER THE
VACANCY BY THE FORMER RENT CONTROLLED TENANT OF  SUCH  HOUSING  ACCOMMO-
DATION,  BUT  IN  NO  EVENT PRIOR TO OCTOBER TWENTY-SECOND, TWO THOUSAND
FIVE, SHALL BE UTILIZED FOR THE PURPOSE OF DETERMINING THE COMPARABILITY
COMPONENT USED FOR THE DETERMINATION OF FAIR MARKET RENT  APPEALS,  PLUS
ALL  SUBSEQUENT  ADJUSTMENTS  AND INCREASES INCLUDING BUT NOT LIMITED TO
INCREASES ATTRIBUTABLE TO VACANCIES, MAJOR CAPITAL  IMPROVEMENTS,  INDI-
VIDUAL  APARTMENT IMPROVEMENTS, RENT GUIDELINES BOARD ORDERS, SURCHARGES
OR OTHER INCREASES THAT WERE NOT PRECLUDED BY AN ORDER OF  THE  DIVISION
OF  HOUSING AND COMMUNITY RENEWAL AS TO OTHER REGULATED HOUSING ACCOMMO-
DATIONS IN THE BUILDING AND THAT WOULD HAVE BEEN PERMITTED NOTWITHSTAND-
ING THE ABSENCE OR OMISSION OF ANY FORM,  RIDER,  NOTICE,  REGISTRATION,
APPLICATION  OR  ANY  OTHER  DOCUMENT  THAT  WOULD HAVE BEEN REQUIRED OR
OTHERWISE PROVIDED, OR (II) THE INITIAL LEGAL REGULATED RENT  AGREED  TO
BY  THE  TENANT PURSUANT TO PARAGRAPH FIVE OF THIS SUBDIVISION, OR (III)
SUCH OTHER AMOUNT AS AGREED TO BY THE OWNER  AND  TENANT  IN  A  WRITING
EXECUTED  BY  THE  PARTIES  AFTER  RECEIPT  BY  THE TENANT OF THE NOTICE
REQUIRED BY PARAGRAPH THREE OF THIS SUBDIVISION AND PAYMENT BY THE OWNER
OF THE REFUND AMOUNT, IF ANY, PROVIDED IN SUCH AGREEMENT.
  (2) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL OFFER TO REFUND
TO THE TENANT RESIDING IN SUCH HOUSING ACCOMMODATION ALL RENT  COLLECTED
FROM  SUCH  TENANT  IN  EXCESS OF THE LEGAL REGULATED RENT CALCULATED IN
ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION.
  (3) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AN OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL PROVIDE WRITTEN
NOTICE TO THE CURRENT TENANT OF THE HOUSING ACCOMMODATION  OF:  (I)  THE
FACT  THAT  THE  HOUSING  ACCOMMODATION  IS SUBJECT TO THIS CHAPTER AS A
RESULT OF THE DECISION OF THE STATE COURT OF APPEALS IN ROBERTS V. TISH-
MAN SPEYER PROPERTIES, L.P., 13 NY3D 270;  (II)  A  CALCULATION  OF  THE
LEGAL  REGULATED  RENT  FOR THE HOUSING ACCOMMODATION IN ACCORDANCE WITH
THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION; AND (III) THE TOTAL
AMOUNT TO BE REFUNDED PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION.
  (4) AN OWNER WHO MAKES A GOOD FAITH CALCULATION OF THE LEGAL REGULATED
RENT AND MAKES A REFUND OFFER IN ACCORDANCE  WITH  THE  REQUIREMENTS  OF
PARAGRAPH  TWO  OF  THIS  SUBDIVISION SHALL NOT BE SUBJECT TO ANY OF THE
OVERCHARGE PENALTIES, INCLUDING INTEREST AND  TREBLE  DAMAGES,  PROVIDED
FOR IN SECTION 26-516 OF THIS CHAPTER.
  (5)  THE  TENANT SHALL BE OBLIGATED TO RESPOND WITHIN THIRTY-FIVE DAYS
OF THE MAILING OF SUCH NOTICE TO THE TENANT. WHERE A TENANT OF A HOUSING
ACCOMMODATION SUBJECT TO THE PROVISIONS  OF  THIS  SECTION  CONSENTS  IN
WRITING TO THE LEGAL REGULATED RENT AND REFUND AMOUNT, IF ANY, SET FORTH
BY  THE OWNER IN THE NOTICE REQUIRED BY PARAGRAPH THREE OF THIS SUBDIVI-
SION, AND THE OWNER MAKES THE REQUIRED REFUND TO THE  TENANT,  OR  AFTER
THE  NOTICE REQUIRED BY SUCH PARAGRAPH THE OWNER AND TENANT ENTER INTO A
WRITTEN AGREEMENT PROVIDING FOR A DIFFERENT  LEGAL  REGULATED  RENT  AND

S. 5763--B                          7

REFUND  AMOUNT  AND THE OWNER MAKES THE REFUND, IF ANY, AGREED TO BY THE
PARTIES, THEN NEITHER SUCH LEGAL REGULATED RENT NOR SUCH REFUND  AMOUNT,
IF  ANY,  SHALL  THEREAFTER BE SUBJECT TO CHALLENGE BY THE TENANT OR ANY
SUBSEQUENT  TENANT  OF THE HOUSING ACCOMMODATION. HOWEVER, IF THE AGREE-
MENT ENTERED INTO PURSUANT TO THIS PARAGRAPH REQUIRES  THAT  THE  TENANT
VACATE  THE SUBJECT HOUSING ACCOMMODATION OR SURRENDER POSSESSION OF THE
HOUSING ACCOMMODATION, IT SHALL NOT BE BINDING UPON SUBSEQUENT TENANTS.
  (6) IN NO EVENT SHALL A TENANT WHO FILES A COMPLAINT WITH THE DIVISION
OF HOUSING AND COMMUNITY RENEWAL SEEKING RELIEF UNDER THE PROVISIONS  OF
THIS  SECTION  BE  ENTITLED TO A REFUND FOR RENT PAYMENTS MADE MORE THAN
FOUR YEARS BEFORE THE COMPLAINT IS FILED.
  (7) FOR ANY HOUSING ACCOMMODATION THAT IS OR WOULD BE SUBJECT TO REGU-
LATION AS A RESULT OF THE DECISION OF THE  STATE  COURT  OF  APPEALS  IN
ROBERTS  V.  TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D 270, AND WHERE THE
OWNER MAKES PAYMENT IN ACCORDANCE WITH  THE  PROVISIONS  OF  SUBDIVISION
SEVENTEEN  OF  SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX
LAW AND SUBDIVISION EE OF SECTION 11-243 OF THIS CODE, THE INITIAL LEGAL
REGULATED RENT FOR SUCH HOUSING ACCOMMODATION SHALL BE  THE  AMOUNT  SET
FORTH  IN  THE  LEASE  IN  EFFECT ON OCTOBER TWENTY-SECOND, TWO THOUSAND
NINE; IF THERE IS NO LEASE IN EFFECT ON SAID DATE, THE  FIRST  LEASE  IN
EFFECT  THEREAFTER;  PLUS  ALL  SUBSEQUENT  ADJUSTMENTS  AND  INCREASES,
INCLUDING BUT NOT LIMITED TO INCREASES ATTRIBUTABLE TO VACANCIES,  MAJOR
CAPITAL IMPROVEMENTS, INDIVIDUAL APARTMENT IMPROVEMENTS, RENT GUIDELINES
BOARD  ORDERS, SURCHARGES OR ANY OTHER INCREASES THAT WERE NOT PRECLUDED
BY AN ORDER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL AS TO OTHER
REGULATED HOUSING ACCOMMODATIONS IN THE BUILDING  AND  THAT  WOULD  HAVE
BEEN  PERMITTED  NOTWITHSTANDING  THE  ABSENCE  OR OMISSION OF ANY FORM,
RIDER, NOTICE, REGISTRATION, APPLICATION  OR  ANY  OTHER  DOCUMENT  THAT
WOULD HAVE BEEN REQUIRED OR OTHERWISE PROVIDED.
  C. AS AN ALTERNATIVE TO THE PROCEDURES SET FORTH IN SUBDIVISIONS A AND
B  OF  THIS  SECTION,  AN OWNER MAY, WITHIN NINETY DAYS OF THE EFFECTIVE
DATE OF THIS SECTION, PROVIDE WRITTEN NOTICE TO THE  CURRENT  TENANT  OF
THE  HOUSING ACCOMMODATION THAT THE OWNER INTENDS TO MAKE PAYMENT TO THE
CITY IN ACCORDANCE WITH  THE  PROVISIONS  OF  SUBDIVISION  SEVENTEEN  OF
SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW AND SUBDI-
VISION EE OF SECTION 11-243 OF THIS CODE. AN OWNER WHO PROVIDES A NOTICE
PURSUANT  TO  THIS  SECTION BUT WHO DOES NOT MAKE PAYMENT TO THE CITY IN
ACCORDANCE WITH THE REAL PROPERTY TAX LAW AND THIS CODE BY JUNE  THIRTI-
ETH, TWO THOUSAND THIRTEEN SHALL BE SUBJECT TO THE OVERCHARGE PENALTIES,
INCLUDING INTEREST AND TREBLE DAMAGES, PROVIDED FOR IN SECTION 26-516 OF
THIS  CHAPTER.  DURING  THE PERIODS IN WHICH THE PROCEDURES SET FORTH IN
SUBDIVISION A, B OR C OF THIS SECTION ARE BEING UTILIZED, THE  OWNER  OF
SUCH  HOUSING ACCOMMODATIONS SHALL BE AUTHORIZED TO CHARGE, AND A TENANT
OR FORMER TENANT OF SUCH A HOUSING ACCOMMODATION SHALL BE  OBLIGATED  TO
PAY, THE AMOUNT SET FORTH IN THE LEASE THEN IN EFFECT.
  S  4.  Section  4 of chapter 576 of the laws of 1974, constituting the
emergency tenant protection act of nineteen seventy-four, is amended  by
adding a new section 5-b to read as follows:
  S 5-B. ENFORCEMENT AND PROCEDURES FOR IMPLEMENTING THE DECISION OF THE
COURT  OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D
270. FOR PURPOSES OF THIS SECTION, "HOUSING  ACCOMMODATIONS  SUBJECT  TO
THE  RULING  OF  THE STATE COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER
PROPERTIES, L.P., 13 NY3D 270"  SHALL  MEAN  HOUSING  ACCOMMODATIONS  IN
BUILDINGS THAT WERE SUBJECT TO THE NEW YORK CITY RENT AND REHABILITATION
LAW, NEW YORK CITY RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE
OR  THIS ACT PRIOR TO THE RECEIPT OF BENEFITS PURSUANT TO SECTION 489 OF

S. 5763--B                          8

THE REAL PROPERTY TAX LAW, EXCEPT AS TO (I) THOSE HOUSING ACCOMMODATIONS
RENTED AFTER SAID TAX BENEFITS HAD EXPIRED, (II) HOUSING  ACCOMMODATIONS
RENTING DURING THE TAX BENEFIT PERIOD WHERE EACH LEASE HAD THE REQUISITE
DEREGULATION NOTICE OR (III) THOSE HOUSING ACCOMMODATIONS DEREGULATED BY
ADMINISTRATIVE OR COURT ORDER, WHICH HOUSING ACCOMMODATIONS SHALL REMAIN
DEREGULATED DESPITE SUCH RULING.
  A.  NOTWITHSTANDING  ANY OTHER PROVISION OF THE RENT STABILIZATION LAW
OF NINETEEN HUNDRED SIXTY-NINE, THIS ACT OR THE CIVIL PRACTICE  LAW  AND
RULES TO THE CONTRARY, AND SUBJECT TO THE PROVISIONS OF SUBDIVISION C OF
THIS  SECTION,  ANY HOUSING ACCOMMODATION THAT IS OR WOULD BE SUBJECT TO
REGULATION UNDER THIS ACT AS A RESULT OF THE DECISION OF  THE  COURT  OF
APPEALS  IN  ROBERTS  V.  TISHMAN  SPEYER PROPERTIES, L.P., 13 NY3D 270,
SHALL BE SUBJECT TO THE FOLLOWING:
  (1) THE LEGAL REGULATED RENT FOR A HOUSING  ACCOMMODATION  SUBJECT  TO
THIS  SECTION  SHALL  BE  (I) THE RENT CHARGED AND PAID FOR SUCH HOUSING
ACCOMMODATION ON OCTOBER 22, 2005, OR  PROVIDED  FOR  IN  THE  LEASE  IN
EFFECT  ON  SUCH DATE, WHICHEVER IS GREATER, PLUS ALL SUBSEQUENT ADJUST-
MENTS AND INCREASES, INCLUDING BUT NOT LIMITED TO INCREASES ATTRIBUTABLE
TO VACANCIES, MAJOR CAPITAL IMPROVEMENTS, INDIVIDUAL APARTMENT  IMPROVE-
MENTS,  RENT  GUIDELINES BOARD ORDERS, SURCHARGES OR ANY OTHER INCREASES
THAT WERE NOT PRECLUDED BY AN ORDER  OF  THE  DIVISION  OF  HOUSING  AND
COMMUNITY  RENEWAL  AS  TO OTHER REGULATED HOUSING ACCOMMODATIONS IN THE
BUILDING AND THAT WOULD HAVE BEEN PERMITTED NOTWITHSTANDING THE  ABSENCE
OR OMISSION OF ANY FORM, RIDER, NOTICE, REGISTRATION, APPLICATION OR ANY
OTHER  DOCUMENT  THAT WOULD HAVE BEEN REQUIRED OR OTHERWISE PROVIDED; IF
THERE IS NO TENANT OR NO LEASE IN EFFECT ON OCTOBER  TWENTY-SECOND,  TWO
THOUSAND  FIVE,  THEN THE FIRST RENT CHARGED AND PAID OR PROVIDED FOR IN
THE FIRST LEASE IN EFFECT AFTER SAID DATE, WHICHEVER IS GREATER; OR (II)
THE LEGAL REGULATED RENT AGREED TO BY THE TENANT PURSUANT  TO  PARAGRAPH
FIVE OF THIS SUBDIVISION; OR (III) SUCH OTHER AMOUNT AS AGREED TO BY THE
OWNER  AND  TENANT IN A WRITING EXECUTED BY THE PARTIES AFTER RECEIPT BY
THE TENANT OF THE NOTICE REQUIRED BY PARAGRAPH THREE OF THIS SUBDIVISION
AND PAYMENT BY THE OWNER OF THE REFUND AMOUNT, IF ANY, PROVIDED IN  SUCH
AGREEMENT.
  (2) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL OFFER TO REFUND
TO  THE TENANT RESIDING IN SUCH HOUSING ACCOMMODATION ALL RENT COLLECTED
FROM SUCH TENANT IN EXCESS OF THE LEGAL  REGULATED  RENT  CALCULATED  IN
ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION.
  (3) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AN OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL PROVIDE WRITTEN
NOTICE  TO  THE  CURRENT TENANT OF THE HOUSING ACCOMMODATION OF: (I) THE
FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT  TO  THIS  CHAPTER  AS  A
RESULT  OF  THE  DECISION OF THE COURT OF APPEALS IN ROBERTS V.  TISHMAN
SPEYER PROPERTIES, L.P., 13 NY3D 270; (II) A CALCULATION  OF  THE  LEGAL
REGULATED  RENT  FOR  THE  HOUSING  ACCOMMODATION IN ACCORDANCE WITH THE
PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION;  AND  (III)  THE  TOTAL
AMOUNT TO BE REFUNDED PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION.
  (4) AN OWNER WHO MAKES A GOOD FAITH CALCULATION OF THE LEGAL REGULATED
RENT  AND  MAKES  A  REFUND OFFER IN ACCORDANCE WITH THE REQUIREMENTS OF
PARAGRAPH TWO OF THIS SUBDIVISION SHALL NOT BE SUBJECT  TO  ANY  OF  THE
OVERCHARGE  PENALTIES,  INCLUDING  INTEREST AND TREBLE DAMAGES, PROVIDED
FOR IN SECTION 26-516 OF THE ADMINISTRATIVE CODE  OF  THE  CITY  OF  NEW
YORK.
  (5)  THE  TENANT SHALL BE OBLIGATED TO RESPOND WITHIN THIRTY-FIVE DAYS
OF THE MAILING OF SUCH NOTICE TO THE TENANT. WHERE A TENANT OF A HOUSING

S. 5763--B                          9

ACCOMMODATION SUBJECT TO THE PROVISIONS  OF  THIS  SECTION  CONSENTS  IN
WRITING TO THE LEGAL REGULATED RENT AND REFUND AMOUNT, IF ANY, SET FORTH
BY  THE OWNER IN THE NOTICE REQUIRED BY PARAGRAPH THREE OF THIS SUBDIVI-
SION,  AND  THE  OWNER MAKES THE REQUIRED REFUND TO THE TENANT, OR AFTER
THE NOTICE REQUIRED BY SUCH PARAGRAPH THE OWNER AND TENANT ENTER INTO  A
WRITTEN  AGREEMENT  PROVIDING  FOR  A DIFFERENT LEGAL REGULATED RENT AND
REFUND AMOUNT AND THE OWNER MAKES THE REFUND, IF ANY, AGREED TO  BY  THE
PARTIES,  THEN NEITHER SUCH LEGAL REGULATED RENT NOR SUCH REFUND AMOUNT,
IF ANY, SHALL THEREAFTER BE SUBJECT TO CHALLENGE BY THE  TENANT  OR  ANY
SUBSEQUENT  TENANT  OF THE HOUSING ACCOMMODATION. HOWEVER, IF THE AGREE-
MENT ENTERED INTO PURSUANT TO THIS PARAGRAPH REQUIRES THE TENANT  VACAT-
ING  THE  SUBJECT  HOUSING  ACCOMMODATION OR SURRENDER POSSESSION OF THE
HOUSING ACCOMMODATION, IT SHALL NOT BE BINDING UPON SUBSEQUENT TENANTS.
  (6) IN NO EVENT SHALL A TENANT WHO FILES A COMPLAINT WITH THE DIVISION
OF HOUSING AND COMMUNITY RENEWAL SEEKING RELIEF UNDER THE PROVISIONS  OF
THIS  SECTION  BE  ENTITLED TO A REFUND FOR RENT PAYMENTS MADE MORE THAN
FOUR YEARS BEFORE THE COMPLAINT IS FILED.
  (7) FOR ANY HOUSING ACCOMMODATION THAT IS OR WOULD BE SUBJECT TO REGU-
LATION AS A RESULT OF THE DECISION OF THE  STATE  COURT  OF  APPEALS  IN
ROBERTS  V.  TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D 270, AND WHERE THE
OWNER MAKES PAYMENT IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION  17
OF THE REAL PROPERTY TAX LAW AND SUBDIVISION EE OF SECTION 11-243 OF THE
ADMINISTRATIVE  CODE  OF  THE CITY OF NEW YORK, THE LEGAL REGULATED RENT
FOR SUCH HOUSING ACCOMMODATION SHALL BE THE  AMOUNT  SET  FORTH  IN  THE
LEASE  IN  EFFECT ON OCTOBER 22, 2009; IF THERE IS NO LEASE IN EFFECT ON
SAID DATE, THEN THE AMOUNT SET FORTH IN THE FIRST LEASE IN EFFECT  AFTER
SAID  DATE; PLUS ALL SUBSEQUENT ADJUSTMENTS AND INCREASES, INCLUDING BUT
NOT LIMITED  TO  INCREASES  ATTRIBUTABLE  TO  VACANCIES,  MAJOR  CAPITAL
IMPROVEMENTS,  INDIVIDUAL  APARTMENT IMPROVEMENTS, RENT GUIDELINES BOARD
ORDERS, SURCHARGES OR ANY OTHER INCREASES THAT WERE NOT PRECLUDED BY  AN
ORDER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL AS TO OTHER REGU-
LATED  HOUSING  ACCOMMODATIONS  IN THE BUILDING AND THAT WOULD HAVE BEEN
PERMITTED NOTWITHSTANDING THE ABSENCE OR OMISSION OF  ANY  FORM,  RIDER,
NOTICE,  REGISTRATION, APPLICATION OR ANY OTHER DOCUMENT THAT WOULD HAVE
BEEN REQUIRED OR OTHERWISE PROVIDED.
  B. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE NEW YORK  CITY
RENT  STABILIZATION  LAW  OF  NINETEEN  HUNDRED SIXTY-NINE, OR THE CIVIL
PRACTICE LAW AND RULES TO THE CONTRARY, AND SUBJECT TO THE PROVISIONS OF
SUBDIVISION C OF THIS SECTION, ANY  HOUSING  ACCOMMODATION  THAT  IS  OR
WOULD  BE  SUBJECT TO REGULATION UNDER THIS ACT AS A RESULT OF THE DECI-
SION OF THE STATE COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER  PROPER-
TIES, L.P., 13 NY3D 270, SHALL BE SUBJECT TO THE FOLLOWING:
  (1) WHERE A HOUSING ACCOMMODATION IS OR WOULD BE SUBJECT TO REGULATION
UNDER  THIS  ACT AS A RESULT OF A DECISION OF THE STATE COURT OF APPEALS
IN ROBERTS V.  TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D 270, THE INITIAL
LEGAL REGULATED RENT SHALL BE (I)  DETERMINED  IN  ACCORDANCE  WITH  THE
METHODOLOGY  USED  FOR FAIR MARKET RENT APPEALS, PROVIDED, HOWEVER, THAT
THE RENTS IN EFFECT FOR COMPARABLE APARTMENTS, WHETHER OR NOT REGULATED,
ON THE DATE FOUR YEARS PRIOR TO THE DATE  OF  THE  COMMENCEMENT  OF  THE
FIRST  LEASE  EXECUTED  AFTER  THE VACANCY BY THE FORMER RENT CONTROLLED
TENANT OF SUCH HOUSING ACCOMMODATION BUT IN NO EVENT  PRIOR  TO  OCTOBER
22,  2005,  SHALL BE UTILIZED FOR THE PURPOSE OF DETERMINING THE COMPAR-
ABILITY COMPONENT  USED  FOR  THE  DETERMINATION  OF  FAIR  MARKET  RENT
APPEALS, PLUS ALL SUBSEQUENT ADJUSTMENTS AND INCREASES INCLUDING BUT NOT
LIMITED  TO  INCREASES ATTRIBUTABLE TO VACANCIES, MAJOR CAPITAL IMPROVE-
MENTS, INDIVIDUAL APARTMENT IMPROVEMENTS, RENT GUIDELINES BOARD  ORDERS,

S. 5763--B                         10

SURCHARGES OR ANY OTHER INCREASES THAT WERE NOT PRECLUDED BY AN ORDER OF
THE  DIVISION  OF  HOUSING  AND  COMMUNITY RENEWAL AS TO OTHER REGULATED
HOUSING ACCOMMODATIONS IN THE BUILDING AND THAT WOULD HAVE BEEN  PERMIT-
TED  NOTWITHSTANDING THE ABSENCE OR OMISSION OF ANY FORM, RIDER, NOTICE,
REGISTRATION, APPLICATION OR ANY OTHER DOCUMENT  THAT  WOULD  HAVE  BEEN
REQUIRED OR OTHERWISE PROVIDED, OR (II) THE INITIAL LEGAL REGULATED RENT
AGREED  TO  BY THE TENANT PURSUANT TO PARAGRAPH FIVE OF THIS SUBDIVISION
OR (III) SUCH OTHER AMOUNT AS AGREED TO BY THE OWNER  AND  TENANT  IN  A
WRITING  EXECUTED  BY  THE  PARTIES  AFTER  RECEIPT BY THE TENANT OF THE
NOTICE REQUIRED BY PARAGRAPH THREE OF THIS SUBDIVISION  AND  PAYMENT  BY
THE OWNER OF THE REFUND AMOUNT, IF ANY, PROVIDED IN SUCH AGREEMENT.
  (2) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL OFFER TO REFUND
TO  THE TENANT RESIDING IN SUCH HOUSING ACCOMMODATION ALL RENT COLLECTED
FROM SUCH TENANT IN EXCESS OF THE LEGAL  REGULATED  RENT  CALCULATED  IN
ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION.
  (3) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AN OWNER
OF A HOUSING ACCOMMODATION SUBJECT TO THIS SECTION SHALL PROVIDE WRITTEN
NOTICE  TO  THE  CURRENT TENANT OF THE HOUSING ACCOMMODATION OF: (I) THE
FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT TO THIS ACT AS  A  RESULT
OF  THE  DECISION  OF  THE STATE COURT OF APPEALS IN ROBERTS V.  TISHMAN
SPEYER PROPERTIES, L.P., 13 NY3D 270; (II) A CALCULATION  OF  THE  LEGAL
REGULATED  RENT  FOR  THE  HOUSING  ACCOMMODATION IN ACCORDANCE WITH THE
PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION;  AND  (III)  THE  TOTAL
AMOUNT TO BE REFUNDED PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION.
  (4) AN OWNER WHO MAKES A GOOD FAITH CALCULATION OF THE LEGAL REGULATED
RENT  AND  MAKES  A  REFUND OFFER IN ACCORDANCE WITH THE REQUIREMENTS OF
PARAGRAPH TWO OF THIS SUBDIVISION SHALL NOT BE SUBJECT  TO  ANY  OF  THE
OVERCHARGE  PENALTIES,  INCLUDING  INTEREST AND TREBLE DAMAGES, PROVIDED
FOR IN SECTION 26-516 OF THE ADMINISTRATIVE CODE  OF  THE  CITY  OF  NEW
YORK.
  (5)  THE  TENANT SHALL BE OBLIGATED TO RESPOND WITHIN THIRTY-FIVE DAYS
OF THE MAILING OF SUCH NOTICE. WHERE A TENANT OF A HOUSING ACCOMMODATION
SUBJECT TO THE PROVISIONS OF THIS SECTION CONSENTS  IN  WRITING  TO  THE
LEGAL  REGULATED  RENT AND REFUND AMOUNT, IF ANY, SET FORTH BY THE OWNER
IN THE NOTICE REQUIRED BY PARAGRAPH THREE OF THIS SUBDIVISION,  AND  THE
OWNER  MAKES  THE  REQUIRED  REFUND  TO  THE TENANT, OR AFTER THE NOTICE
REQUIRED BY SUCH PARAGRAPH THE OWNER AND TENANT  ENTER  INTO  A  WRITTEN
AGREEMENT  PROVIDING  FOR  A  DIFFERENT  LEGAL REGULATED RENT AND REFUND
AMOUNT AND THE OWNER MAKES THE REFUND, IF ANY, AGREED TO BY THE PARTIES,
THEN NEITHER SUCH LEGAL REGULATED RENT NOR SUCH REFUND AMOUNT,  IF  ANY,
SHALL THEREAFTER BE SUBJECT TO CHALLENGE BY THE TENANT OR ANY SUBSEQUENT
TENANT  OF  THE HOUSING ACCOMMODATION. HOWEVER, IF THE AGREEMENT ENTERED
INTO PURSUANT TO THIS PARAGRAPH REQUIRES  THAT  THE  TENANT  VACATE  THE
SUBJECT  HOUSING  ACCOMMODATION  OR  SURRENDER POSSESSION OF THE HOUSING
ACCOMMODATION, IT SHALL NOT BE BINDING UPON SUBSEQUENT TENANTS.
  (6) IN NO EVENT SHALL A TENANT WHO FILES A COMPLAINT WITH THE DIVISION
OF HOUSING AND COMMUNITY RENEWAL SEEKING RELIEF UNDER THE PROVISIONS  OF
THIS  SECTION  BE  ENTITLED TO A REFUND FOR RENT PAYMENTS MADE MORE THAN
FOUR YEARS BEFORE THE COMPLAINT IS FILED.
  (7) FOR ANY HOUSING ACCOMMODATION THAT IS OR WOULD BE SUBJECT TO REGU-
LATION AS A RESULT OF THE DECISION OF THE  STATE  COURT  OF  APPEALS  IN
ROBERTS  V.  TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D 270, AND WHERE THE
OWNER MAKES PAYMENT IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION  17
OF  SECTION  489  OF  THE  REAL  PROPERTY  TAX LAW AND SUBDIVISION EE OF
SECTION 11-243 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW  YORK,  THE

S. 5763--B                         11

INITIAL LEGAL REGULATED RENT FOR SUCH HOUSING ACCOMMODATION SHALL BE THE
AMOUNT SET FORTH IN THE LEASE IN EFFECT ON OCTOBER 22, 2009; IF THERE IS
NO  LEASE  IN EFFECT ON SAID DATE, THE FIRST LEASE IN EFFECT THEREAFTER;
PLUS ALL SUBSEQUENT ADJUSTMENTS AND INCREASES, INCLUDING BUT NOT LIMITED
TO  INCREASES  ATTRIBUTABLE  TO  VACANCIES,  MAJOR CAPITAL IMPROVEMENTS,
INDIVIDUAL  APARTMENT  IMPROVEMENTS,  RENT  GUIDELINES   BOARD   ORDERS,
SURCHARGES OR ANY OTHER INCREASES THAT WERE NOT PRECLUDED BY AN ORDER OF
THE  DIVISION  OF  HOUSING  AND  COMMUNITY RENEWAL AS TO OTHER REGULATED
HOUSING ACCOMMODATIONS IN THE BUILDING AND THAT WOULD HAVE BEEN  PERMIT-
TED  NOTWITHSTANDING THE ABSENCE OR OMISSION OF ANY FORM, RIDER, NOTICE,
REGISTRATION, APPLICATION OR ANY OTHER DOCUMENT  THAT  WOULD  HAVE  BEEN
REQUIRED OR OTHERWISE PROVIDED.
  C. AS AN ALTERNATIVE TO THE PROCEDURES SET FORTH IN SUBDIVISIONS A AND
B  OF  THIS  SECTION,  AN OWNER MAY, WITHIN NINETY DAYS OF THE EFFECTIVE
DATE OF THIS SECTION, PROVIDE WRITTEN NOTICE TO THE  CURRENT  TENANT  OF
THE  HOUSING ACCOMMODATION THAT THE OWNER INTENDS TO MAKE PAYMENT TO THE
CITY OF NEW YORK IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION 17  OF
SECTION  489  OF THE REAL PROPERTY TAX LAW AND SUBDIVISION EE OF SECTION
11-243 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK. AN OWNER  WHO
PROVIDES A NOTICE PURSUANT TO THIS SECTION BUT WHO DOES NOT MAKE PAYMENT
TO SUCH CITY IN ACCORDANCE WITH THE REAL PROPERTY TAX LAW AND THE ADMIN-
ISTRATIVE CODE OF THE CITY OF NEW YORK BY JUNE 30, 2013 SHALL BE SUBJECT
TO  THE  OVERCHARGE  PENALTIES,  INCLUDING  INTEREST AND TREBLE DAMAGES,
PROVIDED FOR IN SECTION 26-516 OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK. DURING THE PERIODS IN WHICH THE PROCEDURES SET FORTH IN SUBDI-
VISIONS A, B OR C OF THIS SECTION ARE BEING UTILIZED, THE OWNER OF  SUCH
HOUSING  ACCOMMODATIONS  SHALL  BE AUTHORIZED TO CHARGE, AND A TENANT OR
FORMER TENANT OF SUCH A HOUSING ACCOMMODATION SHALL BE OBLIGATED TO PAY,
THE AMOUNT SET FORTH IN THE LEASE THEN IN EFFECT.
  S 5. Subparagraph (i) of paragraph 14 of subdivision a of section 5 of
section 4 of chapter 576 of the laws of 1974, constituting the emergency
tenant protection act of nineteen seventy-four, as added by chapter  253
of the laws of 1993, is amended to read as follows:
  (i)  housing accommodations owned as a cooperative or condominium unit
which are or become vacant on or after the effective date of this  para-
graph  REGARDLESS  OF  WHETHER  SUCH HOUSING ACCOMMODATIONS WERE, ARE OR
WILL BE IN A BUILDING WHICH RECEIVED OR RECEIVES TAX  BENEFITS  PURSUANT
TO SECTION 489 OF THE REAL PROPERTY TAX LAW AND REGARDLESS OF THE RULING
OF  THE  COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P.,
13 NY3D 270, except that this subparagraph  shall  not  apply  to  units
occupied  by  non-purchasing tenants under section [three hundred fifty-
two-eee] 352-EEE of the general business law until the occurrence  of  a
vacancy.
  S  6.  Section 489 of the real property tax law is amended by adding a
new subdivision 17 to read as follows:
  17. WHERE HOUSING ACCOMMODATIONS WERE SUBJECT TO RENT REGULATION IMME-
DIATELY PRIOR TO THE RECEIPT OF TAX EXEMPTION OR TAX ABATEMENT  BENEFITS
PURSUANT  TO THIS SECTION OR WHICH ARE OR WOULD BE SUBJECT TO RENT REGU-
LATION DUE TO THE RECEIPT OF SUCH BENEFITS PURSUANT TO THE RULING OF THE
COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., 13  NY3D
270,  THE  OWNER  OF  SUCH HOUSING ACCOMMODATIONS SHALL BE AUTHORIZED TO
MAKE TO THE CITY OF NEW YORK, AND THE CITY OF NEW YORK SHALL BE  OBLIGED
TO  ACCEPT,  PAYMENT OF THE FULL AMOUNT OF ALL SUCH BENEFITS RECEIVED BY
ALL OWNERS OF SUCH HOUSING  ACCOMMODATIONS  PURSUANT  TO  ANY  ORDER  OR
DETERMINATION  ISSUED  BY  THE  LOCAL  HOUSING AGENCY ADMINISTERING THIS
CHAPTER OR THE LOCAL GOVERNMENT AGENCY RESPONSIBLE FOR REAL PROPERTY TAX

S. 5763--B                         12

ASSESSMENT PRIOR TO  OCTOBER  TWENTY-SECOND,  TWO  THOUSAND  NINE  WHICH
REQUIRED  THE  HOUSING  ACCOMMODATION TO BE SUBJECT TO RENT REGULATIONS.
SUCH PAYMENT SHALL BE MADE NO LATER THAN JUNE  THIRTIETH,  TWO  THOUSAND
THIRTEEN.    SUCH PAYMENT SHALL ENTITLE SUCH OWNER TO THE BENEFIT OF THE
EXCLUSIONS SET FORTH IN SECTIONS 26-504.1 AND 26-504.2 OF  THE  ADMINIS-
TRATIVE  CODE  OF  THE CITY OF NEW YORK WHERE THE HOUSING ACCOMMODATIONS
WERE SUBJECT TO RENT REGULATION IMMEDIATELY PRIOR TO THE RECEIPT OF  TAX
BENEFITS  PURSUANT  TO  THIS SECTION OR WHICH ARE OR WOULD BE SUBJECT TO
RENT REGULATION DUE TO RECEIPT OF SUCH BENEFITS PURSUANT TO  THE  RULING
OF  THE  COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P.,
13 NY3D, 270 UPON THE EXPIRATION OF SAID BENEFITS. PAYMENT  PURSUANT  TO
THIS  SUBDIVISION SHALL BE PAID INTO THE GENERAL FUND OF THE CITY OF NEW
YORK. THE CITY OF NEW YORK SHALL, UPON REQUEST OF  SUCH  OWNER,  PROVIDE
WITHIN THIRTY DAYS OF SUCH REQUEST A STATEMENT SETTING FORTH THE AMOUNTS
DUE FOR PAYMENT AND WAIVER, AND THE BASIS THEREOF. THE CITY'S FAILURE TO
RESPOND  TIMELY  TO  SUCH  REQUEST SHALL TOLL THE RUNNING OF THE OWNER'S
OBLIGATION TO MAKE PAYMENT FOLLOWING THE  DELIVERY  OF  NOTICE  OF  SUCH
INTENT  TO  THE TENANT.  FOR PURPOSES OF THIS SECTION, "HOUSING ACCOMMO-
DATIONS SUBJECT TO THE RULING OF THE STATE COURT OF APPEALS  IN  ROBERTS
V.  TISHMAN  SPEYER  PROPERTIES,  L.P.,  13 NY3D 270" SHALL MEAN HOUSING
ACCOMMODATIONS IN BUILDINGS THAT WERE SUBJECT TO THE NEW YORK CITY  RENT
AND  REHABILITATION  LAW,  THE  NEW  YORK CITY RENT STABILIZATION LAW OF
NINETEEN HUNDRED SIXTY-NINE OR THE EMERGENCY TENANT  PROTECTION  ACT  OF
NINETEEN  SEVENTY-FOUR PRIOR TO THE RECEIPT OF BENEFITS PURSUANT TO THIS
SECTION, EXCEPT AS TO (I) THOSE HOUSING ACCOMMODATIONS RENTED AFTER SAID
TAX BENEFITS HAD EXPIRED, (II) HOUSING ACCOMMODATIONS RENTING DURING THE
TAX BENEFIT PERIOD WHERE  EACH  LEASE  HAD  THE  REQUISITE  DEREGULATION
NOTICE  OR (III) THOSE HOUSING ACCOMMODATIONS DEREGULATED BY ADMINISTRA-
TIVE OR COURT ORDER, WHICH HOUSING ACCOMMODATIONS SHALL  REMAIN  DEREGU-
LATED DESPITE SUCH RULING.
  S 7. Section 11-243 of the administrative code of the city of New York
is amended by adding a new subdivision ee to read as follows:
  EE. WHERE HOUSING ACCOMMODATIONS WERE SUBJECT TO RENT REGULATION IMME-
DIATELY  PRIOR TO THE RECEIPT OF TAX EXEMPTION OR TAX ABATEMENT BENEFITS
PURSUANT TO THIS SECTION OR WHICH ARE OR WOULD BE SUBJECT TO RENT  REGU-
LATION DUE TO THE RECEIPT OF SUCH BENEFITS PURSUANT TO THE RULING OF THE
COURT  OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D
270, THE OWNER OF SUCH HOUSING ACCOMMODATIONS  SHALL  BE  AUTHORIZED  TO
MAKE  OR  TO  HAVE  MADE TO THE CITY, AND THE CITY SHALL BE OR HAVE BEEN
OBLIGED TO ACCEPT, PAYMENT OF THE  FULL  AMOUNT  OF  ALL  SUCH  BENEFITS
RECEIVED  BY  ALL  OWNERS OF SUCH HOUSING ACCOMMODATIONS PURSUANT TO ANY
ORDER OR DETERMINATION ISSUED BY THE DEPARTMENT OR BY THE DEPARTMENT  OF
HOUSING PRESERVATION AND DEVELOPMENT PRIOR TO OCTOBER TWENTY-SECOND, TWO
THOUSAND  NINE WHICH REQUIRED THE HOUSING ACCOMMODATION TO BE SUBJECT TO
SUCH RENT REGULATIONS. SUCH PAYMENT SHALL BE MADE  NO  LATER  THAN  JUNE
THIRTIETH, TWO THOUSAND THIRTEEN.  SUCH PAYMENT SHALL ENTITLE SUCH OWNER
TO  THE  BENEFIT  OF  THE  EXCLUSIONS SET FORTH IN SECTIONS 26-504.1 AND
26-504.2 OF THIS CODE WHERE THE HOUSING ACCOMMODATIONS WERE  SUBJECT  TO
RENT  REGULATION IMMEDIATELY PRIOR TO THE RECEIPT OF TAX BENEFITS PURSU-
ANT TO THIS SECTION OR WHICH ARE OR WOULD BE SUBJECT TO RENT  REGULATION
DUE  TO  RECEIPT  OF TAX BENEFITS PURSUANT TO THE RULING OF THE COURT OF
APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., NY3D 270 UPON THE
EXPIRATION OF SAID BENEFITS. PAYMENT PURSUANT TO THIS SUBDIVISION  SHALL
BE  PAID INTO THE GENERAL FUND OF THE CITY. THE CITY SHALL, UPON REQUEST
OF SUCH OWNER, PROVIDE WITHIN THIRTY DAYS OF SUCH  REQUEST  A  STATEMENT
SETTING  FORTH  THE  AMOUNTS  DUE  FOR PAYMENT AND WAIVER, AND THE BASIS

S. 5763--B                         13

THEREOF. THE CITY'S FAILURE TO RESPOND TIMELY TO SUCH REQUEST SHALL TOLL
THE RUNNING OF THE OWNER'S OBLIGATION  TO  MAKE  PAYMENT  FOLLOWING  THE
DELIVERY  OF  NOTICE  OF SUCH INTENT TO THE TENANT. FOR PURPOSES OF THIS
SECTION,  "HOUSING  ACCOMMODATIONS  SUBJECT  TO  THE RULING OF THE STATE
COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., 13  NY3D
270" SHALL MEAN HOUSING ACCOMMODATIONS IN BUILDINGS THAT WERE SUBJECT TO
THE  NEW  YORK  CITY RENT AND REHABILITATION LAW, THE NEW YORK CITY RENT
STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE OR THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR PRIOR TO THE RECEIPT OF BENEFITS
PURSUANT TO SECTION FOUR HUNDRED EIGHTY-NINE OF THE  REAL  PROPERTY  TAX
LAW, EXCEPT AS TO (I) THOSE HOUSING ACCOMMODATIONS RENTED AFTER SAID TAX
BENEFITS HAD EXPIRED, (II) HOUSING ACCOMMODATIONS RENTING DURING THE TAX
BENEFIT  PERIOD  WHERE EACH LEASE HAD THE REQUISITE DEREGULATION NOTICE,
OR (III) THOSE HOUSING ACCOMMODATIONS DEREGULATED BY  ADMINISTRATIVE  OR
COURT  ORDER,  WHICH  HOUSING  ACCOMMODATIONS  SHALL  REMAIN DEREGULATED
DESPITE SUCH RULING.
  S 8. Subdivision c of section 26-504 of the administrative code of the
city of New York, as amended by chapter 289 of  the  laws  of  1985,  is
amended to read as follows:
  c. [Dwelling] EXCEPT AS OTHERWISE PROVIDED BY SUBDIVISION SEVENTEEN OF
SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW AND SUBDI-
VISION  EE  OF SECTION 11-243 OF THIS CODE, DWELLING units in a building
or structure receiving the benefits of section 11-243 or section  11-244
of  [the]  THIS  code or article eighteen of the private housing finance
law, not owned as a cooperative or as a condominium, except as  provided
in  section three hundred fifty-two-eeee of the general business law and
not subject to chapter three of this title. [Upon] EXCEPT  AS  OTHERWISE
PROVIDED  BY  SUBDIVISION  SEVENTEEN AND SUBDIVISION EIGHTEEN OF SECTION
FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW AND SUBDIVISION EE
AND SUBDIVISION FF OF SECTION 11-243 OF THIS  CODE,  the  expiration  or
termination  for any reason of the benefits of section 11-243 or section
11-244 of [the] THIS code or article eighteen  of  the  private  housing
finance  law  any  such  dwelling  unit shall be subject to this chapter
until the occurrence of the first vacancy of such unit after such  bene-
fits  are  no longer being received or if each lease and renewal thereof
for such unit for the tenant in residence at the time of the  expiration
of the tax benefit period has included a notice in at least twelve point
type informing such tenant that the unit shall become subject to deregu-
lation  upon  the  expiration  of such tax benefit period and states the
approximate date on which  such  tax  benefit  period  is  scheduled  to
expire, such dwelling unit shall be deregulated as of the end of the tax
benefit period; provided, however, that if such dwelling unit would have
been  subject  to this chapter or the emergency tenant protection act of
nineteen seventy-four in the absence of this subdivision, such  dwelling
unit shall, upon the expiration of such benefits, continue to be subject
to  this  chapter  or  the  emergency  tenant protection act of nineteen
seventy-four to the same extent and in the same manner as if this subdi-
vision had never applied thereto.  NOTWITHSTANDING THE FOREGOING,  WHERE
THE  NOTIFICATION  REQUIRED BY THIS SUBDIVISION WAS NOT PROVIDED FOR ANY
HOUSING ACCOMMODATION WHICH IS OR WOULD BE SUBJECT TO  REGULATION  UNDER
THIS  CHAPTER  AS A RESULT OF THE DECISION OF THE STATE COURT OF APPEALS
IN ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D 270, THE  FAILURE
TO PROVIDE SUCH NOTIFICATION SHALL NOT PRECLUDE THE DEREGULATION OF SUCH
HOUSING  ACCOMMODATION UPON THE EXPIRATION OF THE LEASE OR RENEWAL LEASE
IMMEDIATELY SUBSEQUENT TO THE EXPIRATION OF SUCH TAX BENEFITS,  PROVIDED
THAT  THE  OWNER  OF  SUCH  HOUSING ACCOMMODATION SHALL COMPLY WITH SUCH

S. 5763--B                         14

NOTICE REQUIREMENT FOR EACH LEASE OR  RENEWAL  LEASE  OFFERED  FOR  SUCH
HOUSING  ACCOMMODATION  DURING  THE PERIOD BETWEEN NINETY DAYS AFTER THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND  TWELVE  WHICH
AMENDED  THIS  SUBDIVISION  AND THE EXPIRATION OF SUCH TAX BENEFITS. FOR
PURPOSES OF THIS SECTION, "HOUSING ACCOMMODATIONS SUBJECT TO THE  RULING
OF  THE  STATE COURT OF APPEALS IN ROBERTS V. TISHMAN SPEYER PROPERTIES,
L.P., 13 NY3D 270" SHALL MEAN HOUSING ACCOMMODATIONS IN  BUILDINGS  THAT
WERE  SUBJECT TO THIS CHAPTER, THE NEW YORK CITY RENT AND REHABILITATION
LAW, AND/OR THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR
PRIOR TO THE RECEIPT OF BENEFITS PURSUANT TO SECTION FOUR HUNDRED EIGHT-
Y-NINE OF THE REAL PROPERTY TAX LAW, EXCEPT  AS  TO  (I)  THOSE  HOUSING
ACCOMMODATIONS  RENTED AFTER SAID TAX BENEFITS HAD EXPIRED, (II) HOUSING
ACCOMMODATIONS RENTING DURING THE TAX BENEFIT PERIOD  WHERE  EACH  LEASE
HAD  THE  REQUISITE DEREGULATION NOTICE, OR (III) THOSE HOUSING ACCOMMO-
DATIONS DEREGULATED BY ADMINISTRATIVE  OR  COURT  ORDER,  WHICH  HOUSING
ACCOMMODATIONS SHALL REMAIN DEREGULATED DESPITE SUCH RULING.
  S  9.  The  opening  paragraph  of  paragraph  (a) of subdivision 1 of
section 489 of the real property tax law, as amended by chapter  244  of
the laws of 2006, is amended to read as follows:
  Any  city  to  which  the  multiple dwelling law is applicable, acting
through its local legislative body or other governing agency, is  hereby
authorized  and  empowered,  to  and  including June first, two thousand
[eleven] FIFTEEN, to adopt and amend local laws or ordinances  providing
that any increase in assessed valuation of real property shall be exempt
from taxation for local purposes, as provided herein, to the extent such
increase results from:
  S  10.  The  closing  paragraph  of subparagraph 6 of paragraph (a) of
subdivision 1 of section 489 of the real property tax law, as amended by
chapter 244 of the laws of 2006, is amended to read as follows:
  Such conversion, alterations or improvements shall be completed within
thirty-six months after the date on which same shall be  started  except
that  such thirty-six month limitation shall not apply to conversions of
residential units which are registered with the loft board in accordance
with article seven-C of the multiple dwelling law pursuant  to  subpara-
graph  one  of  this  paragraph.  Notwithstanding the foregoing, a sixty
month period for  completion  shall  be  available  for  alterations  or
improvements  undertaken by a housing development fund company organized
pursuant to article eleven of the private housing finance law, which are
carried out with the substantial assistance of grants, loans  or  subsi-
dies  from any federal, state or local governmental agency or instrumen-
tality or which are carried out in a property transferred from such city
if alterations and improvements are completed within seven  years  after
the  date  of  transfer. In addition, the local housing agency is hereby
empowered to grant an extension of the  period  of  completion  for  any
project  carried out with the substantial assistance of grants, loans or
subsidies from any  federal,  state  or  local  governmental  agency  or
instrumentality, if such alterations or improvements are completed with-
in  sixty  months  from commencement of construction. Provided, further,
that such conversion, alterations or improvements shall in any event  be
completed prior to December thirty-first, two thousand [eleven] FIFTEEN.
Exemption  for  conversions,  alterations  or  improvements  pursuant to
subparagraph one, two, three or four of this  paragraph  shall  continue
for  a  period not to exceed fourteen years and begin no sooner than the
first quarterly tax bill immediately following the  completion  of  such
conversion,  alterations  or  improvements. Exemption for alterations or
improvements pursuant to this subparagraph or subparagraph five of  this

S. 5763--B                         15

paragraph  shall  continue  for a period not to exceed thirty-four years
and shall begin no sooner than the first quarterly tax bill  immediately
following  the  completion  of  such  alterations  or improvements. Such
exemption  shall  be  equal  to  the  increase in the valuation which is
subject to exemption in full or proportionally  under  this  subdivision
for  ten  or thirty years, whichever is applicable. After such period of
time, the amount of such exempted assessed valuation  of  such  improve-
ments  shall  be reduced by twenty percent in each succeeding year until
the assessed value of the improvements are  fully  taxable.    Provided,
however, exemption for any conversion, alterations or improvements which
are  aided  by  a  loan  or  grant under article eight, eight-A, eleven,
twelve, fifteen or  twenty-two  of  the  private  housing  finance  law,
section six hundred ninety-six-a or section ninety-nine-h of the general
municipal  law,  or  section  three hundred twelve of the housing act of
nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the  Cranston-Gonza-
lez  national  affordable  housing act (42 U.S.C.A. 12701 et.  seq.), or
started after July first, nineteen hundred  eighty-three  by  a  housing
development  fund  company  organized  pursuant to article eleven of the
private housing finance law which are carried out with  the  substantial
assistance  of  grants,  loans  or  subsidies from any federal, state or
local governmental agency or instrumentality or which are carried out in
a property transferred from any city and where alterations and  improve-
ments  are  completed  within seven years after the date of transfer may
commence at the beginning of any tax quarter subsequent to the start  of
such conversion, alterations or improvements and prior to the completion
of such conversion, alterations or improvements.
  S 11. This act shall take effect immediately, provided, that:
  (a)  sections  one and two of this act shall be deemed to have been in
full force and effect on and after July 6, 1993;
  (b) sections nine and ten of this act shall be deemed to have been  in
full force and effect on and after June 1, 2011;
  (c) the amendments to chapter 4 of title 26 of the administrative code
of  the  city  of New York made by sections one, two, three and eight 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;
  (d)  the amendments to the emergency tenant protection act of nineteen
seventy-four made by sections four and five 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;
  (e)  the  provisions  of this act shall preclude in their entirety any
and all claims in any administrative or judicial proceeding relating  to
the  deregulation  of  housing accommodations which were subject to rent
regulation immediately prior to the receipt of tax benefits pursuant  to
section  489  of  the  real  property  tax law and section 11-243 of the
administrative code of the city of New York or which  are  or  would  be
subject  to  rent  regulation  pursuant  to  the  ruling of the court of
appeals in Roberts v. Tishman Speyer  Properties,  L.P.,  13  NY3d  270,
provided  that  the  owner  of  such housing accommodations has acted in
accordance with this act, regardless of whether such claims are brought,
or any payments by such owner permitted under this act are  made,  prior
or  subsequent  to  the effective date of this act. For purposes of this
section, "housing accommodations subject to  the  ruling  of  the  state
court  of appeals in ROBERTS V. TISHMAN SPEYER PROPERTIES, L.P., 13 NY3D
270" shall mean housing accommodations in buildings that were subject to
the New York city rent and rehabilitation law, the New  York  city  rent

S. 5763--B                         16

stabilization law of nineteen hundred sixty-nine or the emergency tenant
protection act of nineteen seventy-four prior to the receipt of benefits
pursuant  to  section 489 of the real property tax law, except as to (i)
those housing accommodations rented after said tax benefits had expired,
(ii)  housing accommodations renting during the tax benefit period where
each lease had the requisite deregulation notice, or (iii) those housing
accommodations deregulated by administrative or court order, which hous-
ing accommodations shall remain deregulated despite such ruling;
  (f) if any provision or provisions of this act shall  be  held  to  be
invalid,  the  validity  of  the  remaining  provisions shall not in any
manner be affected or impaired thereby; and
  (g) the provisions of this act shall preclude in  their  entirety  any
and  all  claims  in  any administrative or judicial proceeding, whether
previously or hereafter commenced, relating to the regulation  or  rents
of  housing  accommodations  which are located in buildings completed or
substantially rehabilitated after  January  1,  1974  and  which  became
subject to rent stabilization due to the receipt of tax exemption or tax
abatement  benefits pursuant to section 489 of the real property tax law
and section 11-243 of the administrative code of the city of  New  York,
provided  that  the  owner  of  such housing accommodations has acted in
accordance with this act, regardless of  whether  such  proceedings  are
brought,  or  payments  by such owner permitted under this act are made,
prior or subsequent to the effective date of this act.

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