S T A T E O F N E W Y O R K
________________________________________________________________________
3454
2009-2010 Regular Sessions
I N S E N A T E
March 19, 2009
___________
Introduced by Sen. ESPADA -- (at request of the Division of Housing &
Community Renewal) -- read twice and ordered printed, and when printed
to be committed to the Committee on Housing, Construction and Communi-
ty Development
AN ACT to amend the administrative code of the city of New York and the
emergency tenant protection act of nineteen seventy-four, in relation
to the civil penalties that may be imposed for violations of such
laws; notices of deregulation under the rent regulatory laws and the
statute of limitations based on such notices
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs 1 and 2 of subdivision c of section 26-516 of
the administrative code of the city of New York, paragraph 2 as amended
by chapter 116 of the laws of 1997, are amended to read as follows:
(1) to have violated an order of the division the commissioner may
impose by administrative order after hearing, a civil penalty in the
amount of [two hundred fifty] ONE THOUSAND dollars for the first such
offense and [one] TWO thousand dollars for each subsequent offense; or
(2) to have harassed a tenant to obtain vacancy of his or her housing
accommodation, the commissioner may impose by administrative order after
hearing, a civil penalty for any such violation. Such penalty shall be
in the amount of [not less than one] TWO thousand dollars [nor more than
five] FOR A FIRST SUCH OFFENSE AND UP TO TEN thousand dollars for each
[such] SUBSEQUENT offense or for a violation consisting of conduct
directed at the tenants of more than one housing accommodation.
S 2. Subparagraph (a) of paragraph 2 of subdivision b of section
26-413 of the administrative code of the city of New York, as amended by
chapter 116 of the laws of 1997, is amended to read as follows:
(a) Impose by administrative order after hearing, a civil penalty for
any violation of said section and bring an action to recover same in any
court of competent jurisdiction. Such penalty in the case of a violation
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09060-04-9
S. 3454 2
of subdivision d of such section shall be in the amount of [not less
than one] TWO thousand dollars [nor more than five] FOR THE FIRST SUCH
OFFENSE AND TEN thousand dollars for each SUBSEQUENT offense or for a
violation consisting of conduct directed at the tenants of more than one
housing accommodation; and in the case of any other violation of such
section in the amount of [one hundred] ONE THOUSAND dollars for the
first such offense and [five hundred] TWO THOUSAND dollars for each
subsequent offense. Such order by the city rent agency shall be deemed
a final determination for the purposes of judicial review as provided in
section 26-411 of this chapter. Such action shall be brought on behalf
of the city and any amount recovered shall be paid into the city treas-
ury. Such right of action may be released, compromised or adjusted by
the city rent agency at any [item] TIME subsequent to the issuance of
such administrative order.
S 3. Clauses (i) and (ii) of paragraph 3 of subdivision a of section
12 of section 4 of chapter 576 of the laws of 1974, constituting the
emergency tenant protection act of nineteen seventy-four, clause (i) as
amended by chapter 403 of the laws of 1983 and clause (ii) as amended by
chapter 116 of the laws of 1997, are amended to read as follows:
(i) to have violated an order of the division the commissioner may
impose by administrative order after hearing, a civil penalty in the
amount of [two hundred fifty] ONE THOUSAND dollars for the first such
offense and [one] TWO thousand dollars for each subsequent offense; or
(ii) to have harassed a tenant to obtain vacancy of his OR HER housing
accommodation, the commissioner may impose by administrative order after
hearing, a civil penalty for any such violation. Such penalty shall be
in the amount of [not less than one] TWO thousand dollars [nor more than
five] FOR THE FIRST SUCH OFFENSE AND TEN thousand dollars for each
offense or for a violation consisting of conduct directed at the tenants
of more than one housing accommodation.
S 4. Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 253 of the
laws of 1993, is amended to read as follows:
(13) provides that an owner is entitled to a rent increase where there
has been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment or improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing accommodation, on written tenant consent to the rent increase. In
the case of a vacant housing accommodation, tenant consent shall not be
required. The permanent increase in the legal regulated rent for the
affected housing accommodation shall be one-fortieth of the total cost
incurred by the landlord in providing such modification or increase in
dwelling space, services, furniture, furnishings or equipment, including
the cost of installation, but excluding finance charges. Provided
further that an owner who is entitled to a rent increase pursuant to
this paragraph shall not be entitled to a further rent increase based
upon the installation of similar equipment, or new furniture or
furnishings within the useful life of such new equipment, or new furni-
ture or furnishings. THE OWNER SHALL GIVE WRITTEN NOTICE TO THE DIVI-
SION AND THE TENANT ON FORMS PRESCRIBED BY THE COMMISSIONER OF ANY SUCH
ADJUSTMENT PURSUANT TO THIS PARAGRAPH AND THE FAILURE TO PROVIDE SUCH
WRITTEN NOTICE AS PROVIDED IN THIS PARAGRAPH SHALL PRECLUDE THE
COLLECTION OF ANY SUCH ADJUSTMENT.
S 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the emergency tenant protection
S. 3454 3
act of nineteen seventy-four, as added by chapter 253 of the laws of
1993, is amended to read as follows:
(1) there has been a substantial modification or increase of dwelling
space or an increase in the services, or installation of new equipment
or improvements or new furniture or furnishings, provided in or to a
tenant's housing accommodation, on written tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. The permanent increase in the legal regulated
rent for the affected housing accommodation shall be one-fortieth of the
total cost incurred by the landlord in providing such modification or
increase in dwelling space, services, furniture, furnishings or equip-
ment, including the cost of installation, but excluding finance charges.
Provided further [than] THAT an owner who is entitled to a rent increase
pursuant to this paragraph shall not be entitled to a further rent
increase based upon the installation of similar equipment, or new furni-
ture or furnishings within the useful life of such new equipment, or new
furniture or furnishings. THE OWNER SHALL GIVE WRITTEN NOTICE TO THE
DIVISION AND THE TENANT ON FORMS PRESCRIBED BY THE COMMISSIONER OF ANY
SUCH ADJUSTMENT PURSUANT TO THIS PARAGRAPH AND THE FAILURE TO PROVIDE
SUCH WRITTEN NOTICE AS PROVIDED IN THIS PARAGRAPH SHALL PRECLUDE THE
COLLECTION OF ANY SUCH ADJUSTMENT.
S 6. Section 26-504.2 of the administrative code of the city of New
York is amended by adding a new subdivision c to read as follows:
C. NOTWITHSTANDING SECTION 26-516 OF THIS CHAPTER AND SECTION TWO
HUNDRED THIRTEEN-A OF THE CIVIL PRACTICE LAW AND RULES, THE PERIODS
PROVIDED FOR THEREIN FOR EXAMINATION OF THE RENTAL HISTORY OF THE ACCOM-
MODATION FOR THE DETERMINATION OF AN OVERCHARGE AND WHETHER THE ACCOMMO-
DATION IS SUBJECT TO THIS LAW ARE EXTENDED BY THE PERIOD DURING WHICH
THE OWNER IS NOT IN COMPLIANCE WITH THE REQUIREMENTS OF SUBDIVISION B OF
THIS SECTION.
S 7. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by chapter 82 of the
laws of 2003, is amended to read as follows:
(13) (I) any housing accommodation with a legal regulated rent of two
thousand dollars or more per month at any time between the effective
date of this paragraph and October first, nineteen hundred ninety-three
which is or becomes vacant on or after the effective date of this para-
graph, or any housing accommodation with a legal regulated rent of two
thousand dollars or more per month at any time on or after the effective
date of the rent regulation reform act of 1997 which is or becomes
vacant on or after the effective date of the rent regulation reform act
of 1997. This exclusion shall apply regardless of whether the next
tenant in occupancy or any subsequent tenant in occupancy actually is
charged or pays less than two thousand dollars a month. Provided howev-
er, that this exclusion shall not apply to housing accommodations which
became or become subject to this act (a) by virtue of receiving tax
benefits pursuant to section four hundred twenty-one-a or four hundred
eighty-nine of the real property tax law, except as otherwise provided
in subparagraph (i) of paragraph (f) of subdivision two of section four
hundred twenty-one-a of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law. This paragraph shall not
apply, however, to or become effective with respect to housing accommo-
dations which the commissioner determines or finds that the landlord or
any person acting on his or her behalf, with intent to cause the tenant
to vacate, has engaged in any course of conduct (including, but not
S. 3454 4
limited to, interruption or discontinuance of required services) which
interfered with or disturbed or was intended to interfere with or
disturb the comfort, repose, peace or quiet of the tenant in his or her
use or occupancy of the housing accommodations and in connection with
such course of conduct, any other general enforcement provision of this
act shall also apply.
(II) THE OWNER OF ANY HOUSING ACCOMMODATION THAT IS NOT SUBJECT TO
THIS ACT PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
GRAPH OR PARAGRAPH N OF PARAGRAPH TWO OF SECTION TWO OF THE EMERGENCY
HOUSING RENT CONTROL LAW SHALL GIVE WRITTEN NOTICE CERTIFIED BY SUCH
OWNER TO THE FIRST TENANT OF THAT HOUSING ACCOMMODATION AFTER SUCH HOUS-
ING ACCOMMODATION BECOMES EXEMPT FROM THE PROVISIONS OF THIS ACT OR THE
EMERGENCY HOUSING RENT CONTROL LAW. SUCH NOTICE SHALL CONTAIN THE LAST
REGULATED RENT, THE REASON THAT SUCH HOUSING ACCOMMODATION IS NOT
SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT CONTROL LAW, A CALCU-
LATION OF HOW EITHER THE RENTAL AMOUNT CHARGED WHEN THERE IS NO LEASE OR
THE RENTAL AMOUNT PROVIDED FOR IN THE LEASE HAS BEEN DERIVED SO AS TO
REACH TWO THOUSAND DOLLARS OR MORE PER MONTH, A STATEMENT THAT THE LAST
LEGAL REGULATED RENT OR THE MAXIMUM RENT MAY BE VERIFIED BY THE TENANT
BY CONTACTING THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, OR
ANY SUCCESSOR THERETO, AND THE ADDRESS AND TELEPHONE NUMBER OF SUCH
AGENCY, OR ANY SUCCESSOR THERETO. SUCH NOTICE SHALL BE SENT BY CERTIFIED
MAIL WITHIN THIRTY DAYS AFTER THE TENANCY COMMENCES OR AFTER THE SIGNING
OF THE LEASE BY BOTH PARTIES, WHICHEVER OCCURS FIRST OR SHALL BE DELIV-
ERED TO THE TENANT AT THE SIGNING OF THE LEASE. IN ADDITION, THE OWNER
SHALL SEND AND CERTIFY TO THE TENANT A COPY OF THE REGISTRATION STATE-
MENT FOR SUCH HOUSING ACCOMMODATION FILED WITH THE STATE DIVISION OF
HOUSING AND COMMUNITY RENEWAL INDICATING THAT SUCH HOUSING ACCOMMODATION
BECAME EXEMPT FROM THE PROVISIONS OF THIS ACT OR THE EMERGENCY HOUSING
RENT CONTROL LAW, WHICH FORM SHALL INCLUDE THE LAST REGULATED RENT, AND
SHALL BE SENT TO THE TENANT WITHIN THIRTY DAYS AFTER THE TENANCY
COMMENCES OR THE FILING OF SUCH REGISTRATION, WHICHEVER OCCURS LATER.
(III) NOTWITHSTANDING SECTION TWELVE OF THIS ACT AND SECTION 213-A OF
THE CIVIL PRACTICE LAW AND RULES TO THE CONTRARY, THE PERIODS PROVIDED
FOR THEREIN FOR EXAMINATION OF THE RENTAL HISTORY OF THE ACCOMMODATION
FOR THE DETERMINATION OF AN OVERCHARGE AND WHETHER THE ACCOMMODATION IS
SUBJECT TO THIS LAW ARE EXTENDED BY THE PERIOD DURING WHICH THE OWNER IS
NOT IN COMPLIANCE WITH REQUIREMENTS OF SUBPARAGRAPH (II) OF THIS PARA-
GRAPH.
S 8. This act shall take effect immediately; provided that sections
one, two and three of this act shall take effect on the thirtieth day
after it shall have become a law; provided, further:
(a) the amendments to sections 26-516, 26-511 and 26-504.2 of the rent
stabilization law of nineteen hundred sixty-nine made by sections one,
four, and six of this act, respectively, 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;
(b) the amendments to section 26-413 of the city rent and rehabili-
tation law made by section two of this act shall remain in full force
and effect only so long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing rent control
law;
(c) the amendments to sections 12, 6 and 5 of section 4 of the emer-
gency tenant protection act of nineteen seventy-four made by sections
three, five and seven of this act, respectively, shall expire on the
S. 3454 5
same date as such act expires and shall not affect the expiration of
such act as provided in section 17 of chapter 576 of the laws of 1974,
as amended;
(d) the amendments to paragraph 2 of subdivision c of section 26-516
and subparagraph (a) of paragraph 2 of subdivision b of section 26-413
of the administrative code of the city of New York and clause (ii) of
paragraph 3 of subdivision a of section 12 of section 4 of the emergency
tenant protection act of nineteen seventy-four, made by sections one,
two and three of this act, respectively, shall not affect the expiration
of such provisions pursuant to subdivision 6 of section 46 of chapter
116 of the laws of 1997, as amended, and shall expire and be deemed
repealed therewith;
(e) the provisions of sections four and five of this act shall apply
with respect to any modification or increase of dwelling space or
increase in services or installation of new equipment or improvements or
new furnishings in a housing accommodation on or after the effective
date of this act; and
(f) the provisions of sections six and seven of this act shall apply
to housing accommodations which became vacant on or after the effective
date of this act.