senate Bill S5039

2013-2014 Legislative Session

Relates to clarifying certain provisions relating to occupancy of class A multiple dwellings

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Senate Actions - UPPERCASE
Jan 08, 2014 referred to housing, construction and community development
May 07, 2013 referred to housing, construction and community development

S5039 - Bill Details

See Assembly Version of this Bill:
A7848
Current Committee:
Law Section:
Multiple Dwelling Law
Laws Affected:
Amd §4, add Art 7-D §§288 - 291, Mult Dwell L; amd §27-2004, add Title 27 Chap 2 Subchap 1 Art 2 §§27-2004.1 - 27-2004.4, NYC Ad Cd

S5039 - Bill Texts

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Relates to clarifying certain provisions relating to occupancy of class A multiple dwellings; provides that use as a short-term rental for less than 30 days shall not disqualify a class A multiple dwelling as a permanent residence.

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BILL NUMBER:S5039

TITLE OF BILL: An act to amend the multiple dwelling law and the
administrative code of the city of New York, in relation to clarifying
certain provisions relating to occupancy of class A multiple dwellings

PURPOSE:

To provide an exemption for a specific class of good actors that rent
certain class A multiple dwelling units on a short-term basis. The law
passed last year (L. 2010, Ch. 225) was created in response to an
on-going issue in New York City with single room occupancy (SRO)
buildings being used as illegal hotels. This bill does not serve these
types of illegal hotels, but rather helps those legitimate individuals
that use certain units as vacation rentals, thereby providing tax
revenue and tourism dollars to the state and city. Further, the
paradigm created by this proposal would further help to eliminate the
type of illegal short-term use of class A units that the 2010 law
sought.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 4 of the multiple dwelling law,
creating a use of a class A unit for short-term rental purposes, so
long as such unit is not an SRO, contains a bathroom and a kitchen,
has working smoke detectors, and carries sufficient fire, hazard and
liability insurance. The unit must also register with the City as a
short-term rental unit.

Section 2 of the bill amends section 4 of the multiple dwelling law to
add a new subdivision 15-a that would define "short-term rental unit."
These units will have to comply with the tax code, including sales and
occupancy taxes.

Section 3 of the bill would add a new article 7-D to the multiple
dwelling law, creating a short-term rental registration structure.
Under the registration process, the individual would register with NYC
for a fee of $500 per unit, all of which would be dedicated to
enforcement. By having units registered, the City would then be able
to conduct audits, inspections, etc., to ensure that guests are
behaving in a prudent manner. Any unit not in compliance with the
standards above would face a fine of $1000 to $2000. Three separate
violations will lead to complete revocation of the registration. Such
individual would have the ability to appeal, satisfying any due
process concerns. Note that any individual who rents a unit to
transient guests for a total of less than 30 days per calendar year
would not have to register with NYC. This is intended to carve out
those individuals that live in their unit year-round but occasionally
rent it while away on vacation or business.

Sections 4, 5 and 6 of the bill would amend the administrative code of
the city of New York, adding the same language as in sections 1, 2 and
3 of the bill to section 27-2004 and a new article 2 to subchapter 1
of chapter 2 of title 27, and thereby, maintaining uniformity.

JUSTIFICATION:


The 2010 law was written to encompass a greater universe than was
intended., as it rids New York City of a legitimate business model:
short-term rental units. These units Provide tax income to New York
and tourism dollars to the areas in which they are located. These
units should not be confused with the small single room living spaces
that are SROs. These units are not those constantly getting bad press
which are often associated with decrepitude, poor maintenance, and
numerous building and health code violations. This legislation also
does not seek to allow for large class A building hotels while one can
certainly find examples of municipalities and a few states regulating
short-term/vacation rentals, it is a hard pressed task to find those
which completely ban the business model. This legislation would help
those individuals and small businesses that are longer be able to
operate because of the 2010 law.

LEGISLATIVE HISTORY:

FISCAL IMPACT ON THE STATE:

New revenue from sales tax. All costs to the City for enforcement
would be paid for through the registration fees and associated
penalties.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  5039

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 7, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 and the administrative code of
  the  city  of  New  York, in relation to clarifying certain provisions
  relating to occupancy of class A multiple dwellings

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

  Section  1.  Paragraph a of subdivision 8 of section 4 of the multiple
dwelling law is amended by adding  a  new  subparagraph  3  to  read  as
follows:
  (3)  IN  A  CLASS  A MULTIPLE DWELLING, THE USE OF A SHORT-TERM RENTAL
UNIT FOR OCCUPANCY OF FEWER THAN THIRTY CONSECUTIVE DAYS  SHALL  NOT  BE
INCONSISTENT  WITH THE OCCUPANCY OF SUCH MULTIPLE DWELLING FOR PERMANENT
RESIDENCE PURPOSES IF:
  (A) SUCH DWELLING UNIT DOES  NOT  PROVIDE  SINGLE  ROOM  OCCUPANCY  AS
DEFINED BY SUBDIVISION SIXTEEN OF THIS SECTION;
  (B)  SUCH  DWELLING  UNIT CONTAINS A BATHROOM AND A KITCHEN NOT SHARED
WITH ANOTHER UNIT;
  (C) SUCH DWELLING UNIT PROVIDES FOR AN EVACUATION DIAGRAM  IDENTIFYING
ALL  MEANS OF EGRESS FROM THE SHORT-TERM RENTAL UNIT AND THE BUILDING IN
WHICH IT IS LOCATED. SUCH  EVACUATION  DIAGRAM  SHALL  BE  POSTED  IN  A
CONSPICUOUS  PLACE ON THE INSIDE ENTRANCE DOOR OF EACH SHORT-TERM RENTAL
UNIT;
  (D) SUCH DWELLING UNIT CONTAINS WORKING SMOKE DETECTORS IN  ACCORDANCE
WITH LOCAL FIRE CODE;
  (E)  SUCH  DWELLING  UNIT  HAS  SUFFICIENT FIRE, HAZARD, AND LIABILITY
INSURANCE TO COVER THOSE PERSONS USING THE UNIT FOR SUCH OCCUPANCY;
  (F) ALL COMPENSATION RECEIVED FOR RENT, OR FOR HIRE, FOR SUCH DWELLING
UNIT, SHALL BE SUBJECT TO ALL APPROPRIATE TAXES AND FEES, INCLUDING, BUT
NOT LIMITED TO, TAXES AND FEES IMPOSED BY SECTIONS ELEVEN HUNDRED  FOUR,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10752-01-3

S. 5039                             2

ELEVEN    HUNDRED  FIVE, ELEVEN HUNDRED SEVEN AND ELEVEN HUNDRED NINE OF
THE TAX LAW, AND SECTION 11-702 OF THE ADMINISTRATIVE CODE OF  THE  CITY
OF NEW YORK; AND
  (G)  SUCH  UNIT  IS  REGISTERED  WITH  THE CITY IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE SEVEN-D OF THIS CHAPTER, UNLESS IT IS  USED  AS  A
SHORT-TERM RENTAL UNIT LESS THAN THIRTY DAYS PER CALENDAR YEAR.
  (H)  PROVIDED  FURTHER  THAT  IN  NON  OWNER-OCCUPIED BUILDINGS, FIFTY
PERCENT OR LESS OF THE TOTAL  UNITS  MAY  BE  REGISTERED  AS  SHORT-TERM
RENTAL UNITS.
  S 2. Section 4 of the multiple dwelling law is amended by adding a new
subdivision 15-a to read as follows:
  15-A.  "SHORT-TERM  RENTAL  UNIT"  IS A CLASS A MULTIPLE DWELLING UNIT
THAT IS AVAILABLE FOR RENT, OR FOR HIRE, FOR LESS THAN  THIRTY  DAYS  BY
GUESTS.
  S  3. The multiple dwelling law is amended by adding a new article 7-D
to read as follows:
                               ARTICLE 7-D
                           SHORT-TERM RENTALS
SECTION 288. REGISTRATION REQUIRED.
        289. REGISTRATION FEE.
        290. VIOLATIONS.
        291. REGULATIONS.
  S  288.  REGISTRATION  REQUIRED.  ANY  INDIVIDUAL  THAT   OPERATES   A
SHORT-TERM  RENTAL  UNIT, AS DEFINED BY SUBDIVISION FIFTEEN-A OF SECTION
FOUR OF THIS CHAPTER, MUST BE REGISTERED WITH THE DEPARTMENT. EACH  UNIT
OPERATED  BY  THE  INDIVIDUAL  SHALL  HAVE A REGISTRATION IDENTIFICATION
NUMBER. THE REGISTRATION SHALL INCLUDE THE LOCATION OF THE UNIT.
  S 289. REGISTRATION FEE. THE REGISTRATION FEE SHALL  BE  FIVE  HUNDRED
DOLLARS  PER UNIT, ALL OF WHICH SHALL BE DEDICATED TO THE DIVISION, UNIT
OR SPECIAL TASK FORCE IN CHARGE OF ENFORCING THIS ARTICLE, AS DETERMINED
BY THE DIVISION.
  S 290. VIOLATIONS. WHEN THE USE OF A SHORT-TERM RENTAL UNIT IS  DETER-
MINED  TO  NOT  COMPLY  WITH  ANY REQUIREMENTS SET FORTH IN SUBPARAGRAPH
THREE OF PARAGRAPH A OF SUBDIVISION EIGHT OF SECTION FOUR OF  THIS  ACT,
THE  INDIVIDUAL  WHO  REGISTERED  THE  UNIT AS REQUIRED BY THIS ARTICLE,
SHALL BE IN VIOLATION OF THE REGISTRATION AND SUBJECT TO A FINE  OF  NOT
LESS  THAN  ONE THOUSAND DOLLARS AND NOT MORE THAN TWO THOUSAND DOLLARS.
IF AN INDIVIDUAL COMMITS THREE VIOLATIONS IN A SINGLE UNIT, THE INDIVID-
UAL'S REGISTRATION OF SUCH UNIT SHALL BE REVOKED PERMANENTLY. SUCH INDI-
VIDUAL SHALL BE AFFORDED THE OPPORTUNITY TO APPEAL  SUCH  REVOCATION  IN
ACCORDANCE WITH REGULATIONS AND PROCEDURES ADOPTED BY THE CITY.
  S  291. REGULATIONS. THE DIVISION SHALL PROMULGATE REGULATIONS TO DEAL
WITH THE  REGISTRATION  AND  ENFORCEMENT  OF  SHORT-TERM  RENTAL  UNITS,
INCLUDING  INSPECTION  AND  AUDIT  PROCEDURES  CONCERNING ALL REGISTERED
UNITS. SUCH REGULATIONS MAY ALSO CREATE A PUBLIC REGISTRY OF ALL  SHORT-
TERM  RENTAL  UNITS  SO  THAT THE PUBLIC IS AWARE OF THOSE UNITS IN GOOD
STANDING.
  S 4. Subparagraph (a) of paragraph  8  of  subdivision  a  of  section
27-2004 of the administrative code of the city of New York is amended by
adding a new clause 3 to read as follows:
  (3)  IN  A  CLASS  A MULTIPLE DWELLING, THE USE OF A SHORT-TERM RENTAL
UNIT FOR OCCUPANCY OF FEWER THAN THIRTY CONSECUTIVE DAYS  SHALL  NOT  BE
INCONSISTENT  WITH THE OCCUPANCY OF SUCH MULTIPLE DWELLING FOR PERMANENT
RESIDENCE PURPOSES IF:
  (A) SUCH DWELLING UNIT DOES  NOT  PROVIDE  SINGLE  ROOM  OCCUPANCY  AS
DEFINED BY SUBDIVISION SIXTEEN OF THIS SECTION;

S. 5039                             3

  (B)  SUCH  DWELLING  UNIT CONTAINS A BATHROOM AND A KITCHEN NOT SHARED
WITH ANOTHER UNIT;
  (C)  SUCH DWELLING UNIT PROVIDES FOR AN EVACUATION DIAGRAM IDENTIFYING
ALL MEANS OF EGRESS FROM THE SHORT-TERM RENTAL UNIT AND THE BUILDING  IN
WHICH  IT  IS  LOCATED.  SUCH  EVACUATION  DIAGRAM  SHALL BE POSTED IN A
CONSPICUOUS PLACE ON THE INSIDE ENTRANCE DOOR OF EACH SHORT-TERM  RENTAL
UNIT;
  (D)  SUCH DWELLING UNIT CONTAINS WORKING SMOKE DETECTORS IN ACCORDANCE
WITH LOCAL FIRE CODE;
  (E) SUCH DWELLING UNIT HAS  SUFFICIENT  FIRE,  HAZARD,  AND  LIABILITY
INSURANCE TO COVER THOSE PERSONS USING THE UNIT FOR SUCH OCCUPANCY;
  (F) ALL COMPENSATION RECEIVED FOR RENT, OR FOR HIRE, FOR SUCH DWELLING
UNIT, SHALL BE SUBJECT TO ALL APPROPRIATE TAXES AND FEES, INCLUDING, BUT
NOT  LIMITED TO, TAXES AND FEES IMPOSED BY SECTIONS ELEVEN HUNDRED FOUR,
ELEVEN HUNDRED FIVE, ELEVEN HUNDRED SEVEN AND ELEVEN HUNDRED NINE OF THE
NEW YORK STATE TAX LAW, AND SECTION 11-702 OF THE ADMINISTRATIVE CODE OF
THE CITY OF NEW YORK; AND
  (G) THE UNIT IS REGISTERED  WITH  THE  CITY  IN  ACCORDANCE  WITH  THE
PROVISIONS  OF  ARTICLE  TWO  OF THIS SUBCHAPTER, UNLESS IT IS USED AS A
SHORT-TERM RENTAL UNIT LESS THAN THIRTY DAYS PER CALENDAR YEAR.
  (H) PROVIDED FURTHER  THAT  IN  NON  OWNER-OCCUPIED  BUILDINGS,  FIFTY
PERCENT  OR  LESS  OF  THE  TOTAL  UNITS MAY BE REGISTERED AS SHORT-TERM
RENTAL UNITS.
  S 5. Subdivision a of section 27-2004 of the  administrative  code  of
the  city  of New York is amended by adding a new paragraph 14-a to read
as follows:
  14-A. SHORT-TERM RENTAL UNIT IS A CLASS A MULTIPLE DWELLING UNIT  THAT
IS AVAILABLE FOR RENT, OR FOR HIRE, FOR LESS THAN THIRTY DAYS BY GUESTS.
  S  6. Subchapter 1 of chapter 2 of title 27 of the administrative code
of the city of New York is amended by adding a new article 2 to read  as
follows:
                                ARTICLE 2
                           SHORT-TERM RENTALS
SECTION 27-2004.1 REGISTRATION REQUIRED.
        27-2004.2 REGISTRATION FEE.
        27-2004.3 VIOLATIONS.
        27-2004.4 REGULATIONS.
  S  27-2004.1  REGISTRATION  REQUIRED.  ANY  INDIVIDUAL THAT OPERATES A
SHORT-TERM RENTAL UNIT, AS DEFINED BY PARAGRAPH FOURTEEN-A  OF  SUBDIVI-
SION  A  OF  SECTION 27-2004 OF THIS SUBCHAPTER, MUST BE REGISTERED WITH
THE DEPARTMENT. EACH UNIT OPERATED BY THE INDIVIDUAL SHALL HAVE A REGIS-
TRATION  IDENTIFICATION  NUMBER.  THE  REGISTRATION  SHALL  INCLUDE  THE
LOCATION OF THE UNIT.
  S  27-2004.2  REGISTRATION  FEE.  THE  REGISTRATION  FEE SHALL BE FIVE
HUNDRED DOLLARS PER UNIT, ALL OF WHICH SHALL BE DEDICATED TO  THE  DIVI-
SION, UNIT OR SPECIAL TASK FORCE IN CHARGE OF ENFORCING THIS ARTICLE, AS
DETERMINED BY THE DIVISION.
  S  27-2004.3  VIOLATIONS.  WHEN THE USE OF A SHORT-TERM RENTAL UNIT IS
DETERMINED TO NOT COMPLY WITH ANY REQUIREMENTS SET FORTH IN CLAUSE THREE
OF SUBPARAGRAPH (A) OF PARAGRAPH  EIGHT  OF  SUBDIVISION  A  OF  SECTION
27-2004 OF THIS CODE, THE INDIVIDUAL WHO REGISTERED THE UNIT AS REQUIRED
BY  THIS  ARTICLE, SHALL BE IN VIOLATION OF THE REGISTRATION AND SUBJECT
TO A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS AND NOT  MORE  THAN  TWO
THOUSAND  DOLLARS. IF AN INDIVIDUAL COMMITS THREE VIOLATIONS IN A SINGLE
UNIT, THE INDIVIDUAL'S REGISTRATION OF SUCH UNIT SHALL BE REVOKED PERMA-
NENTLY.  SUCH INDIVIDUAL SHALL BE AFFORDED  THE  OPPORTUNITY  TO  APPEAL

S. 5039                             4

SUCH REVOCATION IN ACCORDANCE WITH REGULATIONS AND PROCEDURES ADOPTED BY
THE CITY.
  S  27-2004.4 REGULATIONS. THE DIVISION SHALL PROMULGATE REGULATIONS TO
DEAL WITH THE REGISTRATION AND ENFORCEMENT OF SHORT-TERM  RENTAL  UNITS,
INCLUDING  INSPECTION  AND  AUDIT  PROCEDURES  CONCERNING ALL REGISTERED
UNITS. SUCH REGULATIONS MAY ALSO CREATE A PUBLIC REGISTRY OF ALL  SHORT-
TERM  RENTAL  UNITS  SO  THAT THE PUBLIC IS AWARE OF THOSE UNITS IN GOOD
STANDING.
  S 7. This act shall take effect immediately.

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