NY State Senate Bill 2011-S3398

Senate Bill S3398

2011-2012 Legislative Session

Requires replacement cost fire insurance on multiple dwellings and use of insurance proceeds to replace such multiple dwellings

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to housing, construction and community development
Feb 18, 2011	referred to housing, construction and community development

2011-S3398 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Multiple Dwelling Law
Laws Affected:: Add §308-a, Mult Dwell L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S4606
2013-2014: S3256
2015-2016: S1435
2017-2018: S3414
2019-2020: S4595
2021-2022: S4792
2023-2024: S5874
2025-2026: S4211

2011-S3398 (ACTIVE) - Summary

Requires owner of a multiple dwelling to procure and maintain fire insurance on such multiple dwelling in the amount of the full cost to replace such multiple dwellings; requires owners of multiple dwellings to use insurance proceeds to replace such multiple dwellings; deems void provisions in other documents which are contrary to such insurance requirement; provides that failure to comply with such provisions shall constitute a misdemeanor

2011-S3398 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3398

TITLE OF BILL:
An act
to amend the multiple dwelling law, in relation to fire insurance
policies on occupied multiple dwellings

SUMMARY OF PROVISIONS:
1. Would require that an owner of a multiple dwelling purchase fire
insurance of such value that it cover the full replacement cost of
said dwelling. Also, the policy must be renewed to be in effect at
all times during the building's occupancy.

2. Would require that fire insurance proceeds be applied to the
restoration of the damaged residential properties, to restore them to
a habitable condition.

3. Provides for the continued residence of any tenant who shared no
responsibility for the fire.

4. Makes void any provisions in any sales contract, mortgage
indenture, lease or other document that is contrary to the provisions
of this section.

5. Accords misdemeanor status to any owner of a multiple dwelling who
fails to comply with the provisions of this section.

JUSTIFICATION:
In order to combat the epidemic of arson sweeping New York,
legislation is needed to make arson unprofitable, and also to help
rebuild damaged residential properties, but also insure that tenants
are not thrown out on the streets after such a tragedy. Currently,
there is no requirement that an owner of residential property provide
any insurance whatsoever, or if they have insurance, regulate how it
is to be used.

LEGISLATIVE HISTORY:
2009-2010: S.4606 - Died in Housing
2008-2007: S.3371 - Died in Housing
2005-2006: S.3469 - Died in Housing
2003-2004: S.2457 - Died in Housing
2001-2002: S.1183 - Died in Housing
1999-2000: S.474  - Died in Housing
1997-1998: S.1868 - Died in Housing
1997-1998: A.     - Died in Housing
1995-1996: S.1495 - Died in Housing
1995-1996: A.2095 - Died in Housing

EFFECTIVE DATE:
November 1st after becoming law.

2011-S3398 (ACTIVE) - Bill Text download pdf

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

                                  3398

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 18, 2011
                               ___________

Introduced  by  Sen.  PARKER -- 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, in relation to fire insurance
  policies on occupied multiple dwellings

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The multiple dwelling  law  is  amended  by  adding  a  new
section 308-a to read as follows:
  S  308-A. FIRE INSURANCE CONTRACTS REQUIRED; PROCEEDS THEREOF. 1.  ANY
OWNER OF A MULTIPLE DWELLING MUST PROCURE A  POLICY  OF  FIRE  INSURANCE
THEREON  AND  CONTINUE  THE  SAME  IN FULL FORCE AND EFFECT AT ALL TIMES
DURING THE OCCUPANCY OF SUCH MULTIPLE DWELLING BY ONE OR MORE TENANTS AT
A VALUE EQUIVALENT AT ALL TIMES TO THE FULL REPLACEMENT VALUE THEREOF.
  2. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,  THE  PROCEEDS  OF
ANY  FIRE  INSURANCE  CONTRACT  ON  A MULTIPLE DWELLING SHALL BE USED TO
RESTORE THE DAMAGED PROPERTY TO A HABITABLE CONDITION  AT  LEAST  EQUIV-
ALENT TO THE CONDITION OF SUCH MULTIPLE DWELLING PRIOR TO THE LOSS.
  3. IF A MULTIPLE DWELLING IS TO BE OCCUPIED AS SUCH AFTER A LOSS REIM-
BURSABLE  PURSUANT TO SUCH FIRE INSURANCE CONTRACT, ANY PERSON WHO WAS A
TENANT THEREOF AT THE TIME OF THE  LOSS  AND  SHARES  NO  RESPONSIBILITY
THEREFOR  SHALL  HAVE  THE  OPPORTUNITY TO CONTINUE HIS OR HER OCCUPANCY
AFTER RESTORATION FOR THE DURATION OF HIS OR HER LEASE  UNDER  THE  SAME
TERMS AND CONDITIONS AS BEFORE SAID LOSS.
  4.  ANY  PROVISION  IN  A SALES CONTRACT, MORTGAGE INDENTURE, LEASE OR
OTHER DOCUMENT CONTRARY TO THE PROVISIONS OF THIS SECTION SHALL BE  VOID
AS AGAINST PUBLIC POLICY.
  5.  ANY  FAILURE  ON  THE  PART  OF AN OWNER OF A MULTIPLE DWELLING TO
COMPLY WITH THE PROVISIONS OF THIS SECTION SHALL CAUSE HIM OR HER TO  BE
GUILTY OF A MISDEMEANOR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09444-01-1

S. 3398                             2

  S 2. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law and shall apply to fire
insurance  contracts,  sales  contracts,  mortgage indentures, leases or
other documents entered into on and after the  effective  date  of  this
act.

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