NY State Senate Bill 2009-S7364

Senate Bill S7364

2009-2010 Legislative Session

Provides additional oversight for interim multiple dwellings; provides for additional remedies for residents of such dwellings and extends certain provisions

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 31, 2010	referred to housing, construction and community development

2009-S7364 (ACTIVE) - Details

See Assembly Version of this Bill:: A6368
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Multiple Dwelling Law
Laws Affected:: Amd §§282, 284 & 286, add §288, Mult Dwell L; amd §§2426 & 2428, Pub Auth L; add §784, RPAP L; amd §654-d, Priv Hous Fin L; amd §3, Chap 349 of 1982

2009-S7364 (ACTIVE) - Summary

Provides additional oversight for interim multiple dwellings; provides for additional remedies for residents of such dwellings and extends various provisions; makes additional provisions relating to the financing of such dwellings and the applicability of various provisions of law to such dwellings; provides for extension and revision of the loft law.

2009-S7364 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7364

 TITLE OF BILL :
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


 PURPOSE :
The purpose of this bill is to provide for extension and revision of
the Loft Law.

 SUMMARY OF SPECIFIC PROVISIONS :
This bill would:

- extend the expiration date of the Loft Law to May 31, 2014;

- allow fines imposed by the Loft Board to be enforced as money
judgements by a court;

- allow a single residential tenant of an interim multiple dwelling to
bring a specific performance action against an owner without a prior

finding by the Loft Board;

- provide that in any loft building where the owner has failed to
achieve compliance with the timetable any residential tenant of the
building may maintain a special proceeding pursuant to Article 7-a of
the Real Property Actions and Proceedings Law for the purpose of
undertaking work to achieve compliance;

- allow both the State of New York Mortgage Agency (SONYMA) and the
New York City Residential Mortgage Insurance Corporation (REMIC) to
insure mortgages made for the purpose of achieving compliance with
Article 7-C of the Multiple Dwelling Law;

- require that owners of interim multiple dwellings offer leases upon
Loft Board approval of compliance that reflect the existing rights of
occupants, including those related to use and services, as they
existed prior to approval, provided that they do not violate the
certificate of occupancy of the building or any provision of law; and

- prohibits an owner of a building containing rent regulated units
which were previously interim multiple dwellings from recovering
possession of any such unit for his or her personal use and occupancy
or family's use and occupancy where a member of the household has
resided in the building for 20 years or more.

 JUSTIFICATION :
Article 7-C of the Multiple Dwelling Law is presently set to expire on
May 31, 2010. As the process of legalization of interim multiple
dwellings is more than one-third completed, a six-year extension of
the sunset is required in order to provide for the legalization of the
remaining interim multiple dwellings covered by the statute.

The amendment to §284(1) (v) would allow fewer than three tenants
living in separate units to join to bring a specific performance
action against owners who have failed to meet the compliance
timetable. Presently, the law requires three tenants to join in such
an action, even in buildings with fewer than three units.

Although some courts have been willing to consider loft tenants'
Article 7-A applications, the law is unclear as to whether loft
tenants are eligible for this important protection. It is also not
clear whether loft legalization work would be an eligible activity for
a 7-A administrator to undertake. This amendment is intended to
clarify loft tenants' rights under the Real Property Actions and
Proceedings Law.

One of the most persistent dilemmas facing both owners and tenants of
buildings covered by the Loft Law is the lack of financing to
facilitate legalization. By expanding the SONYMA and REMIC mortgage
insurance programs, owners of building should be able to access
financing more readily, thus moving more buildings toward
legalization.

Each of these provisions are important in maintaining a source of
residential housing in New York City that contributes both to its
diversity and economic productivity.

 PRIOR LEGISLATIVE HISTORY :
2004: Passed Assembly; Referred to Housing, Construction and Community
Development in the Senate.
2005: Passed Assembly; Referred to Housing, Construction and Community
Development in the Senate.
2006: A.2942-A Passed Assembly; Referred to Housing, Construction and
Community Development in the Senate.
2007-2008: A.2816 Passed Assembly.

 FISCAL IMPLICATIONS :
This bill assumes the continued operation of the Loft Board, which is
funded by the City of New York. In addition, the legislation expands
the scope of the SONYMA and REMIC mortgage insurance programs.

 EFFECTIVE DATE :
This act would take effect immediately. The provisions of this act and
all regulations, orders and requirements thereunder shall terminate at
the close of the calendar day May 31, 2014.

2009-S7364 (ACTIVE) - Bill Text download pdf

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

                                  7364

                            I N  S E N A T E

                             March 31, 2010
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

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
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;

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

                                                           LBD10059-01-9

S. 7364                             2

(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.
  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

S. 7364                             3

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
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. 7364                             4

  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.

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