S T A T E O F N E W Y O R K
________________________________________________________________________
7178--A
I N S E N A T E
March 18, 2010
___________
Introduced by Sens. DILAN, DIAZ, HASSELL-THOMPSON, HUNTLEY, KRUEGER,
MONTGOMERY, ONORATO, PARKER, PERALTA, SCHNEIDERMAN, SERRANO, SQUADRON
-- read twice and ordered printed, and when printed to be committed to
the Committee on Housing, Construction and Community Development --
reported favorably from said committee and committed to the Committee
on Rules -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the multiple dwelling law, in relation to interim multi-
ple dwellings in a city of more than one million persons and to amend
chapter 349 of the laws of 1982, amending the multiple dwelling law
relating to legalization of interim multiple dwellings in cities over
one million, in relation to the effectiveness of such chapter
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 281 of the multiple dwelling law is amended by
adding a new subdivision 5 to read as follows:
5. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (I), (III) AND (IV) OF
SUBDIVISION TWO OF THIS SECTION, BUT SUBJECT TO PARAGRAPHS (I) AND (II)
OF SUBDIVISION ONE OF THIS SECTION AND PARAGRAPH (II) OF SUBDIVISION TWO
OF THIS SECTION, THE TERM "INTERIM MULTIPLE DWELLING" SHALL INCLUDE
BUILDINGS, STRUCTURES OR PORTIONS THEREOF THAT ARE LOCATED IN A CITY OF
MORE THAN ONE MILLION PERSONS WHICH WERE OCCUPIED FOR RESIDENTIAL
PURPOSES AS THE RESIDENCE OR HOME OF ANY TWO OR MORE FAMILIES LIVING
INDEPENDENTLY FROM ONE ANOTHER FOR A PERIOD OF TWELVE CONSECUTIVE MONTHS
DURING THE PERIOD COMMENCING JANUARY FIRST, TWO THOUSAND EIGHT, AND
ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND NINE. A REDUCTION IN THE
NUMBER OF OCCUPIED RESIDENTIAL UNITS IN A BUILDING AFTER MEETING THE
AFOREMENTIONED TWELVE CONSECUTIVE MONTH REQUIREMENT SHALL NOT ELIMINATE
THE PROTECTIONS OF THIS SECTION FOR ANY REMAINING RESIDENTIAL OCCUPANTS
QUALIFIED FOR SUCH PROTECTIONS. NON-RESIDENTIAL SPACE IN A BUILDING AS
OF THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE OFFERED FOR RESIDEN-
TIAL USE ONLY AFTER THE OBTAINING OF A RESIDENTIAL CERTIFICATE OF OCCU-
PANCY FOR SUCH SPACE AND SUCH SPACE SHALL BE EXEMPT FROM THIS ARTICLE,
EVEN IF A PORTION OF SUCH BUILDING MAY BE AN INTERIM MULTIPLE DWELLING.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08550-10-0
S. 7178--A 2
S 2. Section 282 of the multiple dwelling law, as added by chapter 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] CHAPTER
THREE HUNDRED FORTY-NINE OF THE LAWS OF NINETEEN HUNDRED EIGHTY-TWO.
The loft board shall have such office and staff as shall be necessary to
carry 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 article by an owner or tenant; (d) the issuance, after a public
hearing, and the enforcement of rules and regulations governing minimum
housing maintenance standards in interim multiple dwellings (subject to
the provisions of this chapter and any local building code), rent
adjustments prior to legalization, compliance with this article and the
hearing of complaints and applications made to it pursuant to this arti-
cle; 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. 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 3. 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, para-
graph (v) as amended by section 2 of part PP-1 of chapter 57 of the laws
of 2008, is amended to read as follows:
1. (i) The owner of an interim multiple dwelling (A) shall file an
alteration application within nine months from the effective date of
[the act which added this article] CHAPTER THREE HUNDRED FORTY-NINE OF
THE LAWS OF NINETEEN HUNDRED EIGHTY-TWO, and (B) shall take all reason-
able and necessary action to obtain an approved alteration permit within
twelve months from such effective date, and (C) shall achieve compliance
with the standards of safety and fire protection set forth in article
seven-B of this chapter for the residential portions of the building
within eighteen months from obtaining such alteration permit or eighteen
months from such effective date, whichever is later, and (D) shall take
all reasonable and necessary action to obtain a certificate of occupancy
as a class A multiple dwelling for the residential portions of the
S. 7178--A 3
building or structure within thirty-six months from such effective date.
The loft board may, upon good cause shown, and upon proof of compliance
with the standards of safety and fire protection set forth in article
seven-B of this chapter, twice extend the time of compliance with the
requirement to obtain a residential certificate of occupancy for periods
not to exceed twelve months each.
(ii) An owner of an interim multiple dwelling who has not complied
with the requirements of paragraph (i) of this subdivision by the effec-
tive date of [the chapter of the laws of nineteen hundred ninety-two
which added this paragraph] CHAPTER TWO HUNDRED TWENTY-SEVEN OF THE LAWS
OF NINETEEN HUNDRED NINETY-TWO shall hereafter be deemed in compliance
with this subdivision provided that such owner files an alteration
application by October first, nineteen hundred ninety-two, takes all
reasonable and necessary action to obtain an approved alteration permit
by October first, nineteen hundred ninety-three, achieves compliance
with the standards of safety and fire protection set forth in article
seven-B of this chapter for the residential portions of the building by
April first, nineteen hundred ninety-five, or within eighteen months
from obtaining an approved alteration permit, whichever is later, and
takes all reasonable and necessary action to obtain a certificate of
occupancy as a class A multiple dwelling for the residential portions of
the building or structure by October first, nineteen hundred ninety-five
or within six months from achieving compliance with the aforementioned
standards for the residential portions of the building, whichever is
later.
(iii) An owner of an interim multiple dwelling who has not complied
with the requirements of paragraph (i) or (ii) of this subdivision by
the effective date of [the chapter of the laws of nineteen hundred nine-
ty-six which added this paragraph] CHAPTER THREE HUNDRED NINE OF THE
LAWS OF NINETEEN HUNDRED NINETY-SIX shall hereafter be deemed in compli-
ance with this subdivision provided that such owner files an alteration
application by October first, nineteen hundred ninety-six, takes all
reasonable and necessary action to obtain an approved alteration permit
by October first, nineteen hundred ninety-seven, achieves compliance
with the standards of safety and fire protection set forth in article
seven-B of this chapter for the residential portions of the building by
April first, nineteen hundred ninety-nine or within eighteen months from
obtaining an approved alteration permit whichever is later, and takes
all reasonable and necessary action to obtain a certificate of occupancy
as a class A multiple dwelling for the residential portions of the
building or structure by June thirtieth, nineteen hundred ninety-nine or
within three months from achieving compliance with the aforementioned
standards for the residential portions of the building, whichever is
later.
(iv) An owner of an interim multiple dwelling who has not complied
with the requirements of paragraph (i), (ii) or (iii) of this subdivi-
sion by the effective date of this paragraph as provided in chapter four
hundred fourteen of the laws of nineteen hundred ninety-nine which added
this paragraph shall hereafter be deemed in compliance with this subdi-
vision provided that such owner files an alteration application by
September first, nineteen hundred ninety-nine, takes all reasonable and
necessary action to obtain an approved alteration permit by March first,
two thousand, achieves compliance with the standards of safety and fire
protection set forth in article seven-B of this chapter for the residen-
tial portions of the building by May first, two thousand two or within
twelve months from obtaining an approved alteration permit whichever is
S. 7178--A 4
later, and takes all reasonable and necessary action to obtain a certif-
icate of occupancy as a class A multiple dwelling for the residential
portions of the building or structure by May thirty-first, two thousand
two or within one month from achieving compliance with the aforemen-
tioned standards for the residential portions of the building, whichever
is later.
(v) An owner of an interim multiple dwelling who has not complied with
the requirements of paragraph (i), (ii), (iii) or (iv) of this subdivi-
sion by the effective date of this paragraph as provided in chapter
eighty-five of the laws of two thousand two shall hereafter be deemed in
compliance with this subdivision provided that such owner filed an
alteration application by September first, nineteen hundred ninety-nine,
took all reasonable and necessary action to obtain an approved alter-
ation permit by March first, two thousand, achieves compliance with the
standards of safety and fire protection set forth in article seven-B of
this chapter for the residential portions of the building by May first,
two thousand [ten] TWELVE or within twelve months from obtaining an
approved alteration permit whichever is later, and takes all reasonable
and necessary action to obtain a certificate of occupancy as a class A
multiple dwelling for the residential portions of the building or struc-
ture by May thirty-first, two thousand [ten] TWELVE or within one month
from achieving compliance with the aforementioned standards for the
residential portions of the building, whichever is later.
(vi) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (I) THROUGH (V) OF
THIS SUBDIVISION THE OWNER OF AN INTERIM MULTIPLE DWELLING MADE SUBJECT
TO THIS ARTICLE BY SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-ONE OF
THIS ARTICLE (A) SHALL FILE AN ALTERATION APPLICATION WITHIN NINE MONTHS
FROM THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TEN
WHICH AMENDED THIS SUBPARAGRAPH, AND (B) SHALL TAKE ALL REASONABLE AND
NECESSARY ACTION TO OBTAIN AN APPROVED ALTERATION PERMIT WITHIN TWELVE
MONTHS FROM SUCH EFFECTIVE DATE, AND (C) SHALL ACHIEVE COMPLIANCE WITH
THE STANDARDS OF SAFETY AND FIRE PROTECTION SET FORTH IN ARTICLE SEVEN-B
OF THIS CHAPTER FOR THE RESIDENTIAL PORTIONS OF THE BUILDING WITHIN
EIGHTEEN MONTHS FROM OBTAINING SUCH ALTERATION PERMIT OR EIGHTEEN MONTHS
FROM SUCH EFFECTIVE DATE, WHICHEVER IS LATER, AND (D) SHALL TAKE ALL
REASONABLE AND NECESSARY ACTION TO OBTAIN A CERTIFICATE OF OCCUPANCY AS
A CLASS A MULTIPLE DWELLING FOR THE RESIDENTIAL PORTIONS OF THE BUILDING
OR STRUCTURE WITHIN THIRTY-SIX MONTHS FROM SUCH EFFECTIVE DATE. THE LOFT
BOARD MAY, UPON GOOD CAUSE SHOWN, AND UPON PROOF OF COMPLIANCE WITH THE
STANDARDS OF SAFETY AND FIRE PROTECTION SET FORTH IN ARTICLE SEVEN-B OF
THIS CHAPTER, TWICE EXTEND THE TIME OF COMPLIANCE WITH THE REQUIREMENT
TO OBTAIN A RESIDENTIAL CERTIFICATE OF OCCUPANCY FOR PERIODS NOT TO
EXCEED TWELVE MONTHS EACH.
(VII) An owner who is unable to satisfy any requirement specified in
paragraph (ii), (iii), (iv) [or], (v), OR (VI) of this subdivision for
reasons beyond his/her control, including, but not limited to, a
requirement to obtain a certificate of appropriateness for modification
of a landmarked building, a need to obtain a variance from a board of
standards and appeals, or the denial of reasonable access to a residen-
tial unit as required by paragraph [(x)] (XI) of this subdivision, may
apply to the loft board for an extension of time to meet the requirement
specified in paragraph (ii), (iii), (iv) [or], (v), OR (VI) of this
subdivision. The loft board may grant an extension of time to meet a
requirement specified in paragraph (ii), (iii), (iv) [or], (v), OR (VI)
of this subdivision provided that the owner demonstrates that he/she has
made good faith efforts to satisfy the requirements.
S. 7178--A 5
[(vii)] (VIII) If there is a finding by the loft board that an owner
has failed to satisfy any requirement specified in [paragraphs] PARA-
GRAPH (i), (ii), (iii), (iv) [and], (v), OR (VI) of this subdivision,
such owner shall be subject to all penalties set forth in article eight
of this chapter.
[(viii)] (IX) 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] PARA-
GRAPH (i), (ii), (iii), (iv) [and], (v), OR (VI) of this subdivision, a
court may order specific performance to enforce the provisions of this
article upon the application of three occupants of separate residential
units, qualified for the protection of this article, or upon the appli-
cation of the municipality.
[(ix)] (X) If, as a consequence of an owner's unlawful failure to
comply with the provisions of [paragraphs] PARAGRAPH (i), (ii), (iii),
(iv) [and], (v), OR (VI) of this subdivision, any residential occupant
qualified for protection pursuant to this article is required to vacate
his or her unit as a result of a municipal vacate order, such occupant
may recover from the owner the fair market value of any improvements
made by such tenant and reasonable moving costs. Any vacate order issued
as to such unit by a local government shall be deemed an order to the
owner to correct the non-compliant conditions, subject to the provisions
of this article. Furthermore, when such correction has been made, such
occupant shall have the right to re-occupy his or her unit and shall be
entitled to all applicable tenant protections of this article.
[(x)] (XI) The occupants of a building shall, upon appropriate notice
regarding the timing and scope of the work required, afford the owner
reasonable access to their units so that the work necessary for compli-
ance with this article can be carried out. Access shall also be
afforded, upon reasonable prior notice, for the purpose of inspecting
and surveying units as may be required to comply with the provisions of
this article and article seven-B of this chapter. Failure to comply with
an order of the loft board regarding access shall be grounds for
eviction of a tenant.
S 4. Subdivision 2 of section 285 of the multiple dwelling law, as
amended by chapter 466 of the laws of 1987, is amended to read as
follows:
2. Notwithstanding any other provision of this article, an owner may
apply to the loft board for exemption of a building or portion thereof
from this article on the basis that compliance with this article in
obtaining a legal residential certificate of occupancy would cause an
unjustifiable hardship either because: (i) it would cause an unreason-
ably adverse impact on a non-residential conforming use tenant within
the building or[,] (ii) the cost of compliance renders legal residential
conversion infeasible. Residential and other tenants shall be given not
less than sixty days notice in advance of the hearing date for such
application. If the loft board approves such application, the building
or portion thereof shall be exempt from this article, and may be
converted to non-residential conforming uses, provided, however, that
the owner shall, as a condition of approval of such application, agree
to file an irrevocable recorded covenant in form satisfactory to the
loft board enforceable for fifteen years by the municipality, that the
building will not be re-converted to residential uses during such time.
The standard for granting such hardship application for a building or
portion thereof shall be as follows: (a) the loft board shall only grant
the minimum relief necessary to relieve any alleged hardship with the
S. 7178--A 6
understanding if compliance is reasonably possible it should be achieved
even if it requires alteration of units, relocation of tenants to vacant
space within the building, re-design of space or application for a non-
use-related variance, special permit, minor modification or administra-
tive certification; (b) self-created hardship shall not be allowed; (c)
the test for cost infeasibility shall be that of a reasonable return on
the owner's investment not maximum return on investment; (d) the test
for unreasonably adverse impact on a non-residential conforming use
tenant shall be whether residential conversion would necessitate
displacement. Such hardship applications shall be submitted to the loft
board within nine months of the establishment of the loft board (or, in
the case of interim multiple dwellings referred to in subdivision four
of section two hundred eighty-one of this [chapter] ARTICLE, within nine
months of the effective date of [that] SUCH subdivision FOUR OR IN THE
CASE OF INTERIM MULTIPLE DWELLINGS MADE SUBJECT TO THIS ARTICLE BY
SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-ONE OF THIS ARTICLE,
WITHIN NINE MONTHS OF THE EFFECTIVE DATE OF SUCH SUBDIVISION FIVE), but
shall not be considered, absent a waiver by the loft board, unless the
owner has also filed an alteration application. In determination of any
such hardship application, the loft board may demand such information as
it deems necessary. In approving any such hardship application, the loft
board may fix reasonable terms and conditions for the vacating of resi-
dential occupancy.
S 5. Subparagraphs (A) and (B) of paragraph (ii) and paragraph (iii)
of subdivision 2 of section 286 of the multiple dwelling law, subpara-
graphs (A) and (B) of paragraph (ii) as amended by section 3 of part BB
of chapter 85 of the laws of 2002 and paragraph (iii) as amended by
chapter 414 of the laws of 1999, are amended to read as follows:
(A) Upon the owners' filing of an alteration application, as required
by paragraph (ii), (iii), (iv) [or], (v), OR (VI) of subdivision one of
section two hundred eighty-four of this article, an adjustment equal to
six percent of the rent in effect at the time the owner files the alter-
ation application.
(B) Upon obtaining an alteration permit, as required by paragraph
(ii), (iii), (iv) [or], (v), OR (VI) of subdivision one of section two
hundred eighty-four of this article, an adjustment equal to eight
percent of the rent in effect at the time the owner obtains the alter-
ation permit.
(iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
sion shall not apply to units which were rented at market value after
June twenty-first, nineteen hundred eighty-two and prior to June twen-
ty-first, nineteen hundred ninety-two. THIS PARAGRAPH SHALL NOT APPLY
TO UNITS MADE SUBJECT TO THIS ARTICLE BY SUBDIVISION FIVE OF SECTION TWO
HUNDRED EIGHTY-ONE OF THIS ARTICLE.
S 6. 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. [At such time, the owners of such
S. 7178--A 7
buildings shall join a real estate industry stabilization association in
accordance with such act.]
S 7. Section 3 of chapter 349 of the laws of 1982, amending the multi-
ple dwelling law relating to legalization of interim multiple dwellings
in cities over one million, as amended by a chapter of the laws of 2010
amending chapter 405 of the laws of 1999 amending the real property tax
law relating to improving the administration of the school tax relief
(STAR) program, relating to the lottery game of Quick Draw; to amend
chapter 349 of the laws of 1982 amending the multiple dwelling law
relating to legalization of interim multiple dwellings in cities over
one million, relating to the effectiveness thereof; to amend the multi-
ple dwelling law, relating to owner obligations; relating to providing
for the administration of certain funds and accounts relating to the
2010-2011 budget; and to amend the private housing finance law, relating
to authorizing certain deposits and transfers, as proposed in legisla-
tive bills numbers S. 7925 and A. 11174, is amended to read as follows:
S 3. [Effective date and termination.] This act shall take effect
immediately. [The provisions of this act and all regulations, orders and
requirements thereunder shall terminate at the close of the calendar day
June 18, 2010.]
S 8. This act shall take effect immediately.
