S T A T E O F N E W Y O R K
________________________________________________________________________
6368
2009-2010 Regular Sessions
I N A S S E M B L Y
March 2, 2009
___________
Introduced by M. of A. GLICK, V. LOPEZ, GOTTFRIED, MILLMAN, ROSENTHAL,
WRIGHT -- Multi-Sponsored by -- M. of A. CLARK, COLTON, CYMBROWITZ,
FARRELL, NOLAN, PHEFFER, TOWNS, WEISENBERG -- read once and referred
to the Committee on Housing
AN ACT to amend the multiple dwelling law, the public authorities law,
the real property actions and proceedings law and the private housing
finance law, in relation to making provisions regarding legalization
of interim multiple dwellings; and to amend chapter 349 of the laws of
1982 amending the multiple dwelling law relating to the legalization
of interim multiple dwellings, in relation to extending the provisions
thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 282 of the multiple dwelling law, as added by chap-
ter 349 of the laws of 1982, is amended to read as follows:
S 282. Establishment of special loft unit. In order to resolve
complaints of owners of interim multiple dwellings and of residential
occupants of such buildings qualified for the protection of this arti-
cle, and to act upon hardship applications made pursuant to this arti-
cle, a special loft unit referred to herein as the "loft board" shall be
established which shall consist of from four to nine members represen-
tative of the public, the real estate industry, loft residential
tenants, and loft manufacturing interests, and a chairperson, all to be
appointed by the mayor of the municipality and to serve such terms as he
may designate. The compensation of the members of the loft board shall
be fixed by the mayor. The members of the loft board shall not be
considered employees of the state or the municipality, provided, howev-
er, that state or municipal employees or officers may be named to the
loft board. The mayor shall establish the loft board within ninety days
of the effective date of the act which added this article. The loft
board shall have such office and staff as shall be necessary to carry
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10059-01-9
A. 6368 2
out functions conferred upon it and may request and receive assistance
from any state or municipal agency or department. The loft board shall
have the following duties: (a) the determination of interim multiple
dwelling status and other issues of coverage pursuant to this article;
(b) the resolution of all hardship appeals brought under this article;
(c) the determination of any claim for rent adjustment under this arti-
cle by an owner or tenant; (d) the issuance, after a public hearing, and
the enforcement of rules and regulations governing minimum housing main-
tenance standards in interim multiple dwellings (subject to the
provisions of this chapter and any local building code), rent adjust-
ments prior to legalization, compliance with this article and the hear-
ing of complaints and applications made to it pursuant to this article;
and (e) determination of controversies arising over the fair market
value of a residential tenant's fixtures or reasonable moving expenses.
The violation of any rule or regulation promulgated by the loft board
shall be punishable by a civil penalty determined by the loft board not
to exceed one thousand dollars which may [be recovered by the munici-
pality by a proceeding in any court of competent jurisdiction], UPON THE
EXPIRATION OF THE PERIOD IN WHICH THE PARTY SO PENALIZED MAY INSTITUTE A
PROCEEDING PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
AND RULES, BE FILED AND ENFORCED BY THE MUNICIPALITY IN THE SAME MANNER
AS A JUDGMENT. The loft board may charge and collect reasonable fees in
the execution of its responsibilities. The loft board may administer
oaths, take affidavits, hear testimony, and take proof under oath at
public or private hearings.
S 2. Paragraph (viii) of subdivision 1 of section 284 of the multiple
dwelling law, as amended by section 2 of part BB of chapter 85 of the
laws of 2002, is amended to read as follows:
(viii) In addition to the penalties provided in article eight of this
chapter, if there is a finding by the loft board that an owner has
failed to satisfy any requirement specified in paragraphs (i), (ii),
(iii), (iv) and (v) of this subdivision, a court may order specific
performance to enforce the provisions of this article upon the applica-
tion of [three occupants of separate residential units] A RESIDENTIAL
OCCUPANT, qualified for the protection of this article WHO RESIDES IN
THE AFFECTED INTERIM MULTIPLE DWELLING, or upon the application of the
municipality.
S 3. Subdivision 3 of section 286 of the multiple dwelling law, as
added by chapter 349 of the laws of 1982, is amended to read as follows:
3. Upon or after compliance with the safety and fire protection stand-
ards of article seven-B of this chapter, an owner may apply to the loft
board for an adjustment of rent based upon the cost of such compliance.
Upon approval by the loft board of such compliance, the loft board shall
set the initial legal regulated rent, and each residential occupant
qualified for protection pursuant to this article shall be offered a
residential lease subject to the provisions regarding evictions and
regulation of rent set forth in the emergency tenant protection act of
nineteen seventy-four, except to the extent the provisions of this arti-
cle are inconsistent with such act. THE OFFERED RESIDENTIAL LEASE SHALL
REFLECT SUCH OCCUPANT'S RIGHTS, INCLUDING THOSE RELATED TO USE AND TO
SERVICES, AS THEY EXISTED PRIOR TO APPROVAL OF COMPLIANCE BY THE LOFT
BOARD PROVIDED THAT THEY DO NOT VIOLATE THE CERTIFICATE OF OCCUPANCY OF
THE BUILDING OR ANY PROVISION OF LAW. At such time, the owners of such
buildings shall join a real estate industry stabilization association in
accordance with such act.
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S 4. Section 286 of the multiple dwelling law is amended by adding a
new subdivision 14 to read as follows:
14. AN OWNER OF A BUILDING CONTAINING A UNIT OR UNITS MADE SUBJECT TO
THE PROVISIONS OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVEN-
TY-FOUR OR THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE
PURSUANT TO THIS ARTICLE MAY NOT RECOVER POSSESSION OF ANY SUCH UNIT OR
UNITS FOR HIS OR HER PERSONAL USE AND OCCUPANCY OR FOR THE USE AND OCCU-
PANCY OF A MEMBER OF HIS OR HER IMMEDIATE FAMILY WHERE A MEMBER OF THE
HOUSEHOLD HAS RESIDED IN THE BUILDING FOR TWENTY YEARS OR MORE.
S 5. The multiple dwelling law is amended by adding a new section 288
to read as follows:
S 288. ADDITIONAL REMEDIES. IN ADDITION TO ANY OTHER REMEDY AVAILABLE
PURSUANT TO THIS CHAPTER, IF AN OWNER HAS FAILED TO ACHIEVE COMPLIANCE
WITH THE STANDARDS OF SAFETY AND FIRE PROTECTION SET FORTH IN ARTICLE
SEVEN-B OF THIS CHAPTER FOR THE RESIDENTIAL PORTION OF AN INTERIM MULTI-
PLE DWELLING IN ACCORDANCE WITH THE TIME LIMITS PROVIDED FOR IN PARA-
GRAPH (I), (II), (III), (IV) OR (V) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED EIGHTY-FOUR OF THIS ARTICLE ANY RESIDENTIAL OCCUPANT OF SUCH
BUILDING WHO IS QUALIFIED FOR THE PROTECTION OF THIS ARTICLE MAY MAIN-
TAIN A SPECIAL PROCEEDING PURSUANT TO ARTICLE SEVEN-A OF THE REAL PROP-
ERTY ACTIONS AND PROCEEDINGS LAW FOR THE PURPOSE OF UNDERTAKING THE WORK
NECESSARY TO ACHIEVE SUCH COMPLIANCE.
S 6. Section 2426 of the public authorities law is amended by adding a
new subdivision 23 to read as follows:
23. "INTERIM MULTIPLE DWELLING LEGALIZATION LOAN". A LOAN EXTENDED BY
A FINANCIAL INSTITUTION WHICH MAY INCLUDE THE REFINANCING OF EXISTING
INDEBTEDNESS, IF ANY, SECURED BY ONE OR MORE MORTGAGES ON AN INTERIM
MULTIPLE DWELLING AS DEFINED IN SECTION TWO HUNDRED EIGHTY-ONE OF THE
MULTIPLE DWELLING LAW WHICH COMPLIES WITH THE CONDITIONS ESTABLISHED
PURSUANT TO SECTION TWENTY-FOUR HUNDRED TWENTY-EIGHT OF THIS PART.
S 7. Section 2428 of the public authorities law is amended by adding a
new subdivision 3-c to read as follows:
3-C. (A) NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY,
WHEN SUCH INSURANCE IS NOT REASONABLY AVAILABLE THROUGH THE PRIVATE
MARKET THE AGENCY MAY INSURE INTERIM MULTIPLE DWELLING LEGALIZATION
LOANS WHICH MEET THE FOLLOWING CONDITIONS:
(I) A PORTION OF THE PROCEEDS WILL BE USED TO ACHIEVE COMPLIANCE WITH
ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW; AND
(II) THE BORROWER HAS SUBMITTED A PLAN TO REASONABLY ASSURE COMPLIANCE
WITH ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW.
(B) THE FAILURE OF AN APPLICANT FOR A LOAN TO BE IN COMPLIANCE WITH
THE PROVISIONS OF SECTION TWO HUNDRED EIGHTY-FOUR OF THE MULTIPLE DWELL-
ING LAW SHALL NOT IN ITSELF ACT AS A BAR TO QUALIFYING FOR A LOAN.
S 8. The real property actions and proceedings law is amended by
adding a new section 784 to read as follows:
S 784. APPLICABILITY TO INTERIM MULTIPLE DWELLINGS. 1. THE PROVISIONS
OF THIS ARTICLE SHALL APPLY TO INTERIM MULTIPLE DWELLINGS AS DEFINED IN
SECTION TWO HUNDRED EIGHTY-ONE OF THE MULTIPLE DWELLING LAW TO THE
EXTENT PROVIDED IN SECTION TWO HUNDRED EIGHTY-EIGHT OF SUCH LAW.
2. THE PROVISIONS OF SECTION TWO HUNDRED EIGHTY-EIGHT OF THE MULTIPLE
DWELLING LAW SHALL GOVERN IN THE EVENT OF ANY CONFLICT BETWEEN THE
PROVISIONS OF SUCH SECTION AND THE PROVISIONS OF THIS ARTICLE.
S 9. Subdivision 1 of section 654-d of the private housing finance law
is amended by adding a new paragraph (u) to read as follows:
(U) "INTERIM MULTIPLE DWELLING LEGALIZATION LOAN". A LOAN EXTENDED BY
A FINANCIAL INSTITUTION WHICH MAY INCLUDE THE REFINANCING OF EXISTING
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INDEBTEDNESS, IF ANY, SECURED BY ONE OR MORE MORTGAGES ON AN INTERIM
MULTIPLE DWELLING AS DEFINED IN SECTION TWO HUNDRED EIGHTY-ONE OF THE
MULTIPLE DWELLING LAW WHICH COMPLIES WITH THE CONDITIONS ESTABLISHED
PURSUANT TO SECTION TWENTY-FOUR HUNDRED TWENTY-EIGHT OF THE PUBLIC
AUTHORITIES LAW.
S 10. Subdivision 10 of section 654-d of the private housing finance
law is amended by adding a new paragraph (k) to read as follows:
(K) (I) NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY,
WHEN SUCH INSURANCE IS NOT REASONABLY AVAILABLE THROUGH THE PRIVATE
MARKET THE AGENCY MAY INSURE INTERIM MULTIPLE DWELLING LEGALIZATION
LOANS WHICH MEET THE FOLLOWING CONDITIONS:
(A) A PORTION OF THE PROCEEDS WILL BE USED TO ACHIEVE COMPLIANCE WITH
ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW; AND
(B) THE BORROWER HAS SUBMITTED A PLAN TO REASONABLY ASSURE COMPLIANCE
WITH ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW.
(II) THE FAILURE OF AN APPLICANT FOR A LOAN TO BE IN COMPLIANCE WITH
THE PROVISIONS OF SECTION TWO HUNDRED EIGHTY-FOUR OF THE MULTIPLE DWELL-
ING LAW SHALL NOT IN ITSELF ACT AS A BAR TO QUALIFYING FOR A LOAN.
S 11. Section 3 of chapter 349 of the laws of 1982 amending the multi-
ple dwelling law relating to the legalization of interim multiple dwell-
ings, as amended by section 1 of part PP-1 of chapter 57 of the laws of
2008, is amended to read as follows:
S 3. Effective date and termination. This act shall take effect imme-
diately. The provisions of this act and all regulations, orders and
requirements thereunder shall terminate at the close of the calendar day
May 31, [2010] 2014.
S 12. This act shall take effect immediately, provided that section
784 of the real property actions and proceedings law, as added by
section eight of this act, shall expire and be deemed repealed on the
same date as article 7-C of the multiple dwelling law; provided,
further, however, that the amendments to sections 282, 284 and 286 of
the multiple dwelling law made by sections one, two, three and four of
this act shall not affect the repeal of such sections and shall be
deemed repealed therewith; and provided further, that section 288 of the
multiple dwelling law as added by section five of this act shall expire
and be deemed repealed on the same date as article 7-C of the multiple
dwelling law.