S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6973
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 19, 2021
                                ___________
 
 Introduced by M. of A. DAVILA -- read once and referred to the Committee
   on Housing
 
 AN  ACT  to amend the emergency tenant protection act of nineteen seven-
   ty-four, in relation  to  regulating  buyouts  within  rent  regulated
   apartments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 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 10-c to read as follows:
   §  10-C.  REGULATED  BUYOUTS  FOR  RENT  REGULATED  APARTMENTS. A. FOR
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   (1)  "BUYOUT AGREEMENT" SHALL MEAN AN AGREEMENT WHEREIN THE OWNER OF A
 DWELLING UNIT EXCHANGES MONEY OR OTHER VALUABLE CONSIDERATION TO  INDUCE
 ANY  PERSON  LAWFULLY ENTITLED TO OCCUPANCY OF SUCH UNIT TO SURRENDER OR
 WAIVE ANY RIGHTS IN RELATION TO  SUCH  OCCUPANCY  THAT  RESULTS  IN  THE
 TENANT VACATING SUCH UNIT.
   (2)  "COMMISSIONER"  SHALL  MEAN  THE  COMMISSIONER OF THE DIVISION OF
 HOUSING AND COMMUNITY RENEWAL AND ANY SUCCESSOR THERETO.
   (3) "DIVISION" SHALL  MEAN  THE  DIVISION  OF  HOUSING  AND  COMMUNITY
 RENEWAL AND ANY SUCCESSOR THERETO.
   B.  (1) IF A LANDLORD SHALL MAKE A BUYOUT OFFER TO A CURRENT TENANT IN
 THE FORM OF A PROPOSED BUYOUT AGREEMENT, SUCH AGREEMENT SHALL BE MADE IN
 WRITING AND SHALL CONTAIN:
   (A) HIS OR HER NAME AND CONTACT INFORMATION;
   (B) THE DATE THE REQUEST WAS MADE IN WRITING;
   (C) THE AMOUNT OF MONEY BEING OFFERED TO THE CURRENT TENANT; AND
   (D) THE REASON FOR CONTACTING THE TENANT;
   (2) THE LANDLORD SHALL MAKE IT KNOWN TO A TENANT WITHIN  ANY  PROPOSED
 BUYOUT AGREEMENT THAT:

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

                                                            LBD03003-01-1

 A. 6973                             2
 
   (A)  THE  TENANT  MAY  REJECT ANY OFFER AND MAY CONTINUE TO OCCUPY THE
 DWELLING UNIT; AND
   (B) THE TENANT MAY CONSULT WITH AN ATTORNEY REGARDING SUCH AGREEMENT.
   C.  A PROPOSED BUYOUT OFFER SHALL BE CONSIDERED HARASSMENT AGAINST THE
 CURRENT TENANT IF THE LANDLORD:
   (1) PROVIDES FALSE INFORMATION IN CONNECTION WITH  A  PROPOSED  BUYOUT
 OFFER;
   (2) CONTACTS THE TENANT AT THEIR PLACE OF EMPLOYMENT WITHOUT OBTAINING
 SUCH TENANT'S PERMISSION; OR
   (3)  CONTINUES  TO  CONTACT  THE TENANT WITHIN ONE HUNDRED EIGHTY DAYS
 AFTER THE TENANT HAS ADVISED THE LANDLORD IN WRITING THAT  THEY  DO  NOT
 WANT TO BE CONTACTED FURTHER REGARDING ANY POTENTIAL BUYOUT OFFERS.
   D.  AFTER  RECEIVING  A  PROPOSED  BUYOUT AGREEMENT FROM A LANDLORD, A
 TENANT SHALL HAVE A MINIMUM OF NINETY DAYS FROM THE  TIME  THE  PROPOSED
 BUYOUT  WAS PRESENTED TO THE TENANT, TO ACCEPT OR REJECT SUCH AGREEMENT.
 THE TENANT AND LANDLORD SHALL NOT BE ABLE TO EXECUTE A BUYOUT  AGREEMENT
 UNTIL SUCH NINETY DAY PERIOD HAS LAPSED. THE TENANT SHALL USE THE NINETY
 DAY  PERIOD  TO UNDERSTAND THEIR RIGHTS PERTAINING TO SUCH AGREEMENT AND
 TO SEEK OUT ASSISTANCE FROM COUNSEL IF THEY DESIRE.
   E. WITHIN NINETY DAYS AFTER THE EXECUTION OF A BUYOUT AGREEMENT FOR  A
 DWELLING UNIT, THE LANDLORD OF SUCH UNIT SHALL ELECTRONICALLY PROVIDE TO
 THE DIVISION THE FOLLOWING:
   (1) HIS OR HER NAME;
   (2)  THE  ADDRESS  OF  THE  DWELLING  UNIT THAT IS THE SUBJECT OF SUCH
 BUYOUT AGREEMENT;
   (3) THE AMOUNT OF MONEY OR, IF  APPLICABLE,  A  DESCRIPTION  OF  OTHER
 VALUABLE  CONSIDERATION  AGREED UPON AS PART OF THE BUYOUT AGREEMENT. IF
 SUCH OTHER VALUABLE CONSIDERATION INCLUDED THE DISMISSAL  OF  A  PENDING
 ACTION  OR PROCEEDING, THE CAPTION, INDEX NUMBER AND COUNTY IN WHICH THE
 PENDING ACTION OR PROCEEDING WAS VENUED SHALL BE REQUIRED;
   (4) THE DATE SUCH BUYOUT AGREEMENT WAS EXECUTED; AND
   (5) THE AMOUNT OF TIME, IN MONTHS, REMAINING IN  THE  LEASE  FOR  SUCH
 SUBJECT  DWELLING  UNIT.  A TENANT WITH A LEGAL RIGHT TO A LEASE RENEWAL
 PURSUANT TO STATE LAW SHALL BE INDICATED AS HAVING AN  UNLIMITED  NUMBER
 OF MONTHS REMAINING.
   F.  NO  LATER  THAN  JANUARY  31, 2023, AND BY JANUARY 31 OF EACH YEAR
 THEREAFTER, THE COMMISSIONER SHALL SUBMIT A REPORT TO THE SPEAKER OF THE
 ASSEMBLY AND TEMPORARY PRESIDENT OF THE SENATE THAT CONTAINS  THE  TOTAL
 NUMBER  OF  BUYOUT  AGREEMENTS  EXECUTED DURING THE PRIOR CALENDAR YEAR.
 SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING FOR EACH
 CENSUS TRACT:
   (1) THE AMOUNT OF MONEY OR OTHER CONSIDERATION  AGREED  UPON  IN  EACH
 SUCH AGREEMENT;
   (2) THE DATE THAT EACH SUCH AGREEMENT WAS EXECUTED; AND
   (3)  THE  AMOUNT  OF  TIME,  IN MONTHS, REMAINING IN THE LEASE FOR THE
 DWELLING UNIT SUBJECT TO SUCH AGREEMENT. A TENANT WITH A LEGAL RIGHT  TO
 A  LEASE  RENEWAL  PURSUANT TO STATE LAW SHALL BE INDICATED AS HAVING AN
 UNLIMITED NUMBER OF MONTHS REMAINING.
   G. (1) A LANDLORD WHO SHALL BE REQUIRED TO PROVIDE INFORMATION TO  THE
 DIVISION  AND WHO FAILS TO DO SO PURSUANT TO PARAGRAPH E OF THIS SECTION
 SHALL BE LIABLE TO A CIVIL PENALTY OF FIVE HUNDRED DOLLARS, WHICH  SHALL
 BE PAYABLE TO THE DIVISION.
   (2)  IF  A LANDLORD IS FOUND GUILTY OF HARASSMENT PURSUANT TO SUBDIVI-
 SION C OF THIS SECTION, HAS VIOLATED THE NINETY DAY REQUIRED TIME PERIOD
 PURSUANT TO SUBDIVISION D OF THIS SECTION OR HAS  VIOLATED  THE  MINIMUM
 LEGAL STANDARDS SET FORTH IN THIS SECTION ON HOW A BUYOUT SHALL BE MADE,

 A. 6973                             3
 
 THEY  SHALL  BE  LIABLE  TO  A  PENALTY OF ONE THOUSAND DOLLARS FOR EACH
 VIOLATION.
   §  2.  This act shall take effect July 1, 2022. Effective immediately,
 the addition, amendment, and/or repeal of any rule or regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.