S T A T E   O F   N E W   Y O R K
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                                  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.

A. 6368                             3

  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

A. 6368                             4

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.