senate Bill S7865

2013-2014 Legislative Session

Creates the New York City department of housing preservation and development homeowners improvement trust fund and the HPD homeowner standard warranty

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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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Jun 16, 2014 referred to rules

S7865 - Bill Details

Current Committee:
Senate Rules
Law Section:
Private Housing Finance Law
Laws Affected:
Add Art 28 ยงยง1233 - 1238, Priv Hous Fin L

S7865 - Bill Texts

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Creates the New York City department of housing preservation and development homeowners improvement trust fund and the HPD homeowner standard warranty.

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BILL NUMBER:S7865

TITLE OF BILL: An act to amend the private housing finance law, in
relation to creating the New York City department of housing preserva-
tion and development homeowners improvement trust fund and the HPD home-
owner standard warranty

PURPOSE OR GENERAL IDEA OF BILL: To create a fund to cover warranty
expenses of homes sold by the New York City Department of Housing Pres-
ervation and Development ("HPD").

SUMMARY OF PROVISIONS: New Article XXVIII is added to the Private Hous-
ing Law. Section 1233 sets forth the definitions of the new article.

Section 1234 establishes the New York City Department of Housing Preser-
vation and Development Homeowners Improvement Trust Fund (the "Fund").
Each sponsor of an HPD project shall be required to contribute to the
Fund by submitting not less than 5% of the total value of the project
into the fund.

Moneys shall submitted into the Fund to cover future warranty claims
related to the HPD project. In the event that no warranty issues are
outstanding, 50% of the funds submitted by the sponsor shall be returned
thirty months after completion of the project. In the event that no
warranty issues are outstanding, the remaining 50% of the funds submit-
ted by the sponsor shall be returned sixty months after completion of
the project.

Section 1235 establishes the warranty to be provided by the HPD spon-
sor's project.

Section 1236 sets forth the powers and duties of the Commissioner relat-
ing to HPD projects.

Section 1237 sets forth the process for dispute resolution of relating
to defects and warranties of HPD projects.

Section 1238 sets for the penalties for violating Article XXVIII.

JUSTIFICATION: The New York City Department of Housing Preservation and
Development ("HPD") is a New York City Mayoral agency responsible for
the development and preservation of affordable housing. HPD facilitates
the expansion and preservation of the City's affordable housing stock.
The agency finances affordable housing through the administration of
City Capital funds, federal HOME Investment Partnership funds, tax cred-
its and abatements and the subsidized disposition of City-owned land.
HPD solicits private development partners through Request for Proposals
and Requests for Qualifications. Additionally, HPD advertises available
housing units to the public and administers housing lotteries; this
practice results in the public often mistakenly believing they are
purchasing a home from the City, not entering into contracts with
private developers.

HPD's development process is subjected to limited oversight compared to
other City agencies, which are subject sealed, competitive bidding proc-
esses. This lack of oversight has resulted into corruption in the
procurement process and unscrupulous contractors repeatedly awarded
affordable housing construction projects. The end result is shoddy
construction, the repairs for which then become additional burdens to
the homeowners, whom already have financial limitations which qualified
them for the housing in the first place. Independent inspectors have
found serious construction defects, including cracked foundations, leak-
ing roofs, improper electrical wiring, unfinished or mislaid plumbing,
lack of insulation and inadequate heating, improperly installed windows,
the wrong sized pipes, and poor to subpar building materials. HPD has no
method of recourse in place for the homeowners, and in fact occasionally
applies for additional public funds to address the needed repairs.

Under the administration of Mayor Bloomberg, 160,000 units of affordable
housing were created and preserved through both new construction and
renovation. Mayor De Blasio is proposing another 200,000 units of hous-
ing.

This bill would require all developers who participate in the HPD-spon-
sored projects to make a deposit equal to five percent (5%) of the value
of the project to cover any future potential warranty issues. In the
event that no outstanding warranty issues exist, after thirty (30)
months half of the deposit will be returned to the developer. After
sixty (60) months, if no outstanding warranty issues exist, the remain-
ing deposit shall be returned.

This bill will protect future homeowners. It will work as both a preven-
tative measure, incentivizing the developers to construct a higher qual-
ity product in order to get their money out of escrow, and provide an
avenue for affordable, timely repairs for homeowners.

PRIOR LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect on the first of January after
it shall have become a law.

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

                                  7865

                            I N  S E N A T E

                              June 16, 2014
                               ___________

Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the private housing finance law, in relation to creating
  the New York City department of housing preservation  and  development
  homeowners  improvement  trust  fund  and  the  HPD homeowner standard
  warranty

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

  Section  1. The private housing finance law is amended by adding a new
article 28 to read as follows:
                             ARTICLE XXVIII
          NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION AND
              DEVELOPMENT HOMEOWNERS IMPROVEMENT TRUST FUND
SECTION 1233. DEFINITIONS.
        1234. NEW YORK  CITY  DEPARTMENT  OF  HOUSING  PRESERVATION  AND
                DEVELOPMENT HOMEOWNERS IMPROVEMENT TRUST FUND.
        1235. WRITTEN WARRANTY; CONTENTS.
        1236. POWERS OF THE COMMISSIONER.
        1237. RESOLUTION OF DISPUTES REGARDING HPD PROJECTS.
        1238. PENALTIES FOR VIOLATION OF THIS ARTICLE.
  S  1233.  DEFINITIONS.  FOR THE PURPOSES OF THIS ARTICLE THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "BUSINESS ENTITY" MEANS A  CORPORATION,  ASSOCIATION,  PARTNERSHIP,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, OR OTHER LEGAL
ENTITY.
  2.  "DELIVERED  CONDITION"  MEANS  THE  PHYSICAL CONDITION OF THE HOME
AFTER DELIVERY AND INSTALLATION AT THE HOME SITE HAS BEEN COMPLETED.
  3. "DEPARTMENT" MEANS THE NEW YORK STATE  COMMUNITY  HOMES  &  RENEWAL
PROGRAM.
  4.  "FUND"  MEANS THE NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION
AND DEVELOPMENT HOMEOWNERS IMPROVEMENT TRUST FUND  CREATED  PURSUANT  TO
THE PROVISIONS OF SECTION TWELVE HUNDRED THIRTY-FOUR OF THIS ARTICLE.
  5.  "SPONSOR"  MEANS ANY PERSON OR BUSINESS ENTITY, INCLUDING, BUT NOT
LIMITED TO, A  SPONSOR,  DEVELOPER,  MORTGAGOR,  APPLICANT,  OR  GENERAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15191-03-4

S. 7865                             2

CONTRACTOR AS DEFINED IN SECTION 1-16, 29-01, 30-01, 34-01, AND 35-01 OF
TITLE  TWENTY-EIGHT  OF THE RULES OF THE CITY OF NEW YORK WHO DEVELOPS A
HOME THROUGH AN HPD PROJECT FOR SALE TO A BUYER.
  6. "HPD PROJECT" MEANS ANY CONSTRUCTION OF REHABILITATION OF ANY RESI-
DENTIAL DWELLING, IN WHOLE OR IN PART, THROUGH THE PROGRAMS SET FORTH IN
CHAPTERS TWENTY-NINE, THIRTY, THIRTY-FOUR AND THIRTY-FIVE OF TITLE TWEN-
TY-EIGHT OF THE RULES OF THE CITY OF NEW YORK.
  7.  "COMMISSIONER" MEANS THE COMMISSIONER OF THE NEW YORK STATE COMMU-
NITY HOMES & RENEWAL.
  8. "SERVICE" MEANS  THE  CONSTRUCTION,  REHABILITATION,  MODIFICATION,
ALTERATION, OR REPAIR OF AN HPD PROJECT.
  9.  "STATE  ADMINISTRATIVE  AGENCY"  OR "SAA" MEANS THE NEW YORK STATE
COMMUNITY HOMES & RENEWAL.
  10. "BUILDING CODE" MEANS THE UNIFORM  FIRE  PREVENTION  AND  BUILDING
CODE PROMULGATED UNDER SECTION THREE HUNDRED SEVENTY-SEVEN OF THE EXECU-
TIVE  LAW,  LOCAL  BUILDING  CODE STANDARDS APPROVED BY THE UNIFORM FIRE
PREVENTION AND BUILDING CODE COUNCIL UNDER SECTION THREE HUNDRED  SEVEN-
TY-NINE  OF  THE EXECUTIVE LAW, AND THE BUILDING CODE OF THE CITY OF NEW
YORK, AS DEFINED IN TITLE TWENTY-SEVEN OF THE ADMINISTRATIVE CODE OF THE
CITY OF NEW YORK.
  11. "CONSTRUCTED IN A SKILLFUL  MANNER"  MEANS  THAT  WORKMANSHIP  AND
MATERIALS MEET OR EXCEED THE SPECIFIC STANDARDS OF THE APPLICABLE BUILD-
ING  CODE. WHEN THE APPLICABLE BUILDING CODE DOES NOT PROVIDE A RELEVANT
SPECIFIC STANDARD, SUCH TERM MEANS THAT WORKMANSHIP AND  MATERIALS  MEET
OR EXCEED THE STANDARDS OF LOCALLY ACCEPTED BUILDING PRACTICES.
  12.  "MATERIAL  DEFECT"  MEANS ACTUAL PHYSICAL DAMAGE TO THE FOLLOWING
LOAD-BEARING PORTIONS OF THE HOME CAUSED BY FAILURE OF SUCH LOAD-BEARING
PORTIONS WHICH AFFECTS THEIR LOAD-BEARING FUNCTIONS TO THE  EXTENT  THAT
THE  HOME BECOMES UNSAFE, UNSANITARY OR OTHERWISE UNLIVEABLE: FOUNDATION
SYSTEMS AND FOOTINGS, BEAMS, GIRDERS, LINTELS, COLUMNS, WALLS AND PARTI-
TIONS, FLOOR SYSTEMS, AND ROOF FRAMING SYSTEMS.
  13. "NEW HOME" OR "HOME" MEANS ANY SINGLE  FAMILY  HOUSE  OR  FOR-SALE
UNIT  IN A MULTI-UNIT RESIDENTIAL STRUCTURE CONSTRUCTED OR REHABILITATED
THROUGH AN HPD PROJECT IN WHICH TITLE TO THE INDIVIDUAL UNITS IS  TRANS-
FERRED  TO OWNERS UNDER A CONDOMINIUM, COOPERATIVE, OR INDIVIDUAL OWNER-
SHIP REGIME. SUCH TERMS DO NOT INCLUDE DWELLINGS CONSTRUCTED SOLELY  FOR
LEASE.
  14.  "OWNER"  MEANS  THE  FIRST  PERSON  TO WHOM THE HOME IS SOLD AND,
DURING THE UNEXPIRED PORTION OF THE WARRANTY PERIOD, EACH  SUCCESSOR  IN
TITLE  TO  THE  HOME  AND  ANY  MORTGAGEE  IN POSSESSION. OWNER DOES NOT
INCLUDE THE BUILDER OF THE HOME OR ANY FIRM UNDER COMMON CONTROL OF  THE
BUILDER.
  15.  "PLUMBING,  ELECTRICAL, HEATING, COOLING AND VENTILATION SYSTEMS"
SHALL MEAN:
  A. IN THE CASE OF PLUMBING SYSTEMS: GAS  SUPPLY  LINES  AND  FITTINGS;
WATER  SUPPLY, WASTE AND VENT PIPES AND THEIR FITTINGS; SEPTIC TANKS AND
THEIR DRAIN FIELDS; WATER, GAS  AND  SEWER  SERVICE  PIPING,  AND  THEIR
EXTENSIONS TO THE TIE-IN OF A PUBLIC UTILITY CONNECTION, OR ON-SITE WELL
AND SEWAGE DISPOSAL SYSTEM;
  B.  IN  THE  CASE OF ELECTRICAL SYSTEMS: ALL WIRING, ELECTRICAL BOXES,
SWITCHES, OUTLETS AND CONNECTIONS UP TO THE PUBLIC  UTILITY  CONNECTION;
AND
  C.  IN  THE CASE OF HEATING, COOLING AND VENTILATION SYSTEMS: ALL DUCT
WORK, STEAM, WATER AND REFRIGERANT LINES, REGISTERS,  CONVECTORS,  RADI-
ATION ELEMENTS AND DAMPERS.

S. 7865                             3

  16.  "WARRANTY  DATE"  MEANS  THE  DATE OF THE PASSING OF TITLE TO THE
FIRST OWNER FOR OCCUPANCY BY SUCH OWNER OR  SUCH  OWNER'S  FAMILY  AS  A
RESIDENCE,  OR  THE  DATE OF FIRST OCCUPANCY OF THE HOME AS A RESIDENCE,
WHICHEVER FIRST OCCURS.
  17. "HPD OWNER WARRANTY" MEANS THE WARRANTY REQUIRED TO BE PROVIDED TO
EACH OWNER OF A HOME.
  S  1234. NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION AND DEVELOP-
MENT HOMEOWNERS IMPROVEMENT TRUST FUND. 1. A NEW YORK CITY DEPARTMENT OF
HOUSING PRESERVATION AND DEVELOPMENT HOMEOWNERS IMPROVEMENT  TRUST  FUND
(HEREINAFTER,  "THE  FUND")  IS  HEREBY  ESTABLISHED  TO PROVIDE FOR THE
PAYMENT OF APPROVED REPAIRS TO AGGRIEVED HOMEOWNERS WHO ARE  VICTIMS  OF
SUBSTANDARD HOUSING BUILT BY A SPONSOR ON AN HPD PROJECT. THE FUND SHALL
BE  ADMINISTERED BY THE COMMISSIONER OF NEW YORK STATE COMMUNITY HOMES &
RENEWAL.
  2. A. A SPONSOR OF AN HPD PROJECT SHALL BE REQUIRED TO PARTICIPATE  IN
THE FUND UNLESS A SPONSOR PROVIDES A BOND OR OTHERWISE MEETS THE WARRAN-
TIES SET FORTH IN SECTION TWELVE HUNDRED THIRTY-FIVE OF THIS ARTICLE.
  B.  ANY SPONSOR WHO IS GRANTED OR RECEIVES THE RIGHT TO DEVELOP AN HPD
PROJECT MUST PARTICIPATE IN THE FUND BY SUBMITTING TO THE COMMISSIONER A
CHECK IN THE AMOUNT OF NOT LESS THAN FIVE PERCENT OF THE TOTAL VALUE  OF
THE HPD PROJECT BEFORE AN HPD PROJECT MAY BE AWARDED TO A SPONSOR.
  C.  THE  COMMISSIONER  MAY,  FROM  TIME TO TIME, AMEND THIS SECTION TO
REQUIRE SUCH ADDITIONAL CONTRIBUTIONS BY PARTICIPANTS IN THE FUND AS THE
COMMISSIONER DETERMINES TO BE NECESSARY TO MAINTAIN  AN  AMOUNT  IN  THE
FUND  WHICH  IS  ADEQUATE  TO  FULFILL  ITS  PURPOSES  AND TO COUNTERACT
DEPLETION OF THE FUND RESULTING FROM  PAYMENTS  MADE  OUT  OF  THE  FUND
PURSUANT TO SUBDIVISION 3 OF THIS SECTION.
  D.  FUND  PARTICIPANTS MAY DISCONTINUE THEIR PARTICIPATION IN THE FUND
AT ANY TIME BY FILING A BOND IN ACCORDANCE WITH REGULATIONS  PROMULGATED
BY THE COMMISSIONER AND IN EFFECT.
  E.  THE  FUNDS  WILL BE RETURNED TO THE SPONSOR AS FOLLOWS:  (1) FIFTY
PERCENT RETURNED AFTER THIRTY MONTHS AFTER COMPLETION OF THE PROJECT  SO
LONG  AS  THERE ARE NO UNRESOLVED WARRANTY ISSUES; AND (2) FIFTY PERCENT
RETURNED AFTER SIXTY MONTHS AFTER COMPLETION OF THE PROJECT SO  LONG  AS
THERE  ARE  NO  UNRESOLVED WARRANTY ISSUES. UNDER NO CIRCUMSTANCES SHALL
FUNDS BE RETURNED IF  THERE  ARE  ANY  OUTSTANDING  UNRESOLVED  WARRANTY
ISSUES.
  F.  PARTICIPATION  IN THE FUND DOES NOT RELIEVE A SPONSOR OF ANY OBLI-
GATION TO PAY AWARDS OR FINES IMPOSED BY THE DEPARTMENT OR JUDGMENTS  OR
ARBITRATION  AWARDS  RENDERED  AGAINST A SPONSOR BY A COURT OF COMPETENT
JURISDICTION.
  3. A. THE COMMISSIONER MAY REQUIRE THAT DISBURSEMENTS BE MADE FROM THE
FUND TO PAY OUTSTANDING AWARDS TO AN OWNER, ON BEHALF OF AN OWNER WHEN:
  (1) THE  DEPARTMENT  HAS  CONDUCTED  AN  ADMINISTRATIVE  HEARING  THAT
RESULTS IN A DECISION THAT A SPONSOR IS IN VIOLATION OF A LAW, ORDINANCE
OR REGULATION ENFORCED BY THE DEPARTMENT OR THE HPD OWNER WARRANTY;
  (2)  THE  SPONSOR  IS  ORDERED BY THE DEPARTMENT TO PAY AN AWARD TO AN
OWNER;
  (3) THE SPONSOR HAS FAILED TO PAY SUCH AWARD TO AN OWNER WITHIN THIRTY
DAYS OF THE DATE OF THE DEPARTMENT'S ORDER; AND
  (4) THE SPONSOR HAS CONDUCTED AN ADMINISTRATIVE HEARING  THAT  RESULTS
IN  A  DECISION  THAT  A  SPONSOR  HAS  NOT REMEDIED MATERIAL DEFECTS IN
CONSTRUCTION OR REHABILITATION OF AN HPD PROJECT AND IS IN VIOLATION  OF
THE HPD OWNER WARRANTY.
  B.  DISBURSEMENTS  FROM THE FUND WILL BE MADE AT THE DISCRETION OF THE
COMMISSIONER OR HIS OR HER DESIGNEE.

S. 7865                             4

  C. THE COMMISSIONER OR HIS OR HER  DESIGNEE  MAY  ORDER  THAT  PARTIAL
PAYMENT OF AWARDS BE MADE FROM THE FUND.
  D. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO:
  (1)  LIMIT THE RIGHTS AND REMEDIES OF ANY PARTY, INCLUDING THE DEPART-
MENT, TO PURSUE A CAUSE OF ACTION AGAINST A SPONSOR WHO IS A PARTICIPANT
IN THE FUND;
  (2) CREATE A RIGHT OF ANY PERSON TO A PORTION  OF  ANY  OF  THE  FUND,
EXCEPT IN THE CASE OF AN AWARD DULY MADE BY THE COMMISSIONER PURSUANT TO
THE PROVISIONS HEREIN; OR
  (3)  PROVIDE  FOR  THE PAYMENT OF AWARDS OR JUDGMENTS RENDERED AGAINST
FUND PARTICIPANTS IN PERSONAL INJURY ACTIONS.
  4. THE COMMISSIONER SHALL, BY JANUARY THIRTY-FIRST OF EACH YEAR, CAUSE
AN ACCOUNTING TO BE MADE OF ALL OF  THE  FUND'S  ACTIVITIES  DURING  THE
PRECEDING CALENDAR YEAR.
  S 1235. WRITTEN WARRANTY; CONTENTS. 1. THE HPD OWNER WARRANTY SHALL BE
PROVIDED  TO THE OWNER THAT ACCORDS WITH THE PROVISIONS OF ARTICLE THIR-
TY-SIX-B OF THE GENERAL BUSINESS LAW, INCLUDING THE FOLLOWING:
  A. ONE YEAR FROM AND AFTER THE WARRANTY DATE THE  HOME  WILL  BE  FREE
FROM  DEFECTS  DUE  TO  A FAILURE TO HAVE BEEN CONSTRUCTED IN A SKILLFUL
MANNER;
  B. TWO YEARS FROM AND AFTER THE  WARRANTY  DATE  THE  PLUMBING,  ELEC-
TRICAL,  HEATING,  COOLING  AND  VENTILATION SYSTEMS OF THE HOME WILL BE
FREE FROM DEFECTS DUE TO A FAILURE BY THE BUILDER TO HAVE INSTALLED SUCH
SYSTEMS IN A SKILLFUL MANNER; AND
  C. SIX YEARS FROM AND AFTER THE WARRANTY DATE THE HOME  WILL  BE  FREE
FROM  MATERIAL  DEFECTS, INCLUDING, BUT NOT LIMITED TO, ANY CONSTRUCTION
THAT IS NOT IN COMPLIANCE WITH THE BUILDING CODE OR  THE  ZONING  RESOL-
UTION OF THE CITY OF NEW YORK.
  2.  A.  THE  SPONSOR  SHALL  TAKE APPROPRIATE CORRECTIVE ACTION WITHIN
SIXTY DAYS OF RECEIPT OF WRITTEN NOTIFICATION AT THE SITE OF THE HOME IN
INSTANCES OF SUBSTANTIAL DEFECTS  IN  MATERIALS  OR  WORKMANSHIP,  WHICH
BECOME EVIDENT WITHIN ONE YEAR FROM THE DATE OF THE DELIVERY OF THE HOME
TO  THE OWNER, PROVIDED THE OWNER OR HIS TRANSFEREE GIVES WRITTEN NOTICE
OF SUCH DEFECTS TO THE SPONSOR AT THEIR BUSINESS ADDRESS NOT LATER  THAN
ONE YEAR AND TEN DAYS AFTER DATE OF DELIVERY.
  B.  THE  SPONSOR  WILL, AS A MINIMUM REMEDY, MAKE REPAIRS OR INDEMNIFY
THE OWNER FOR THE ACTUAL COST OF REPAIRING ANY RUST  DAMAGE  COVERED  BY
THE WARRANTY.
  C.  THE SPONSOR WILL HONOR ALL VALID CLAIMS UNDER THE WARRANTY REGARD-
LESS OF THEIR NUMBER.
  D. NOTHING CONTAINED IN THIS SECTION SHALL BE  DEEMED  TO  PRECLUDE  A
SPONSOR  FROM  ENTERING  INTO A CONTRACT REQUIRING A FINANCIALLY SOLVENT
CONTRACTOR WHO WORKED ON THE HOME TO BE INITIALLY  RESPONSIBLE  FOR  THE
COST  OF  ANY  CORRECTIVE  ACTION  AS  A RESULT OF THE NEGLIGENCE OF THE
CONTRACTOR.
  3. A. THE WARRANTY UNDER THIS ARTICLE SHALL BE IN ADDITION TO AND  NOT
IN  DEROGATION  OF  ALL OTHER RIGHTS AND PRIVILEGES WHICH SUCH OWNER MAY
HAVE UNDER ANY OTHER LAW OR INSTRUMENT. WAIVER  OF  ANY  RIGHTS  BY  THE
OWNER  UNDER  THIS ARTICLE SHALL BE DEEMED CONTRARY TO PUBLIC POLICY AND
SHALL BE UNENFORCEABLE AND VOID.
  B. THE PROVISIONS OF THIS ARTICLE SHALL PREEMPT ANY LOCAL  LAW  INCON-
SISTENT  WITH  THE  PROVISIONS  OF  THIS ARTICLE. THIS ARTICLE SHALL NOT
PREEMPT ANY BUILDER SUBJECT TO ITS PROVISIONS FROM  COMPLYING  WITH  ANY
LOCAL LAW WITH RESPECT TO THE REGULATION OF SPONSORS EXCEPT AS EXPRESSLY
PROVIDED HEREIN.

S. 7865                             5

  C.  NOTHING  IN THIS ARTICLE SHALL BE CONSTRUED TO REPEAL, INVALIDATE,
SUPERSEDE OR RESTRICT ANY RIGHT, LIABILITY OR  REMEDY  PROVIDED  BY  ANY
OTHER  STATUTE  OF THE STATE, EXCEPT WHERE SUCH CONSTRUCTION WOULD, AS A
MATTER OF LAW, BE UNREASONABLE.
  S  1236.  POWERS  OF THE COMMISSIONER. THE COMMISSIONER SHALL HAVE THE
FOLLOWING POWERS AND DUTIES WITH RESPECT TO HPD PROJECTS:
  1. TO CREATE AND MAINTAIN A REGISTRY ACCESSIBLE TO  THE  PUBLIC  WHICH
SHALL INCLUDE, BUT NOT BE LIMITED TO THE FOLLOWING INFORMATION:
  A.  A LISTING OF ALL PRE-APPROVED, PRE-QUALIFIED, OR APPROVED SPONSORS
FOR HPD PROJECTS AND ALL SPONSORS AWARDED HPD PROJECTS; AND
  B. RECORDS OF ALL VIOLATIONS ISSUED,  DISCIPLINARY  ACTION  TAKEN  AND
PENALTIES PAID AND LEVIED PURSUANT TO THIS ARTICLE;
  2. TO RETAIN RECORDS AND ALL APPLICATION MATERIALS SUBMITTED TO IT;
  3.  TO RECEIVE COMPLAINTS, CONDUCT INVESTIGATIONS AND ESTABLISH PROCE-
DURES FOR THE RESOLUTION OF DISPUTES RELATING TO THE CONSTRUCTION OF HPD
PROJECTS AND TO RESOLVE SUCH COMPLAINTS AND DISPUTES PURSUANT TO SECTION
TWELVE HUNDRED THIRTY-FOUR OF THIS ARTICLE;
  4. TO PROMULGATE RULES AND REGULATIONS RELATING TO THE  PROVISIONS  OF
THIS ARTICLE;
  5. TO CONDUCT ADJUDICATORY HEARINGS, PURSUANT TO THE STATE ADMINISTRA-
TIVE  PROCEDURE  ACT TO RESOLVE VIOLATIONS OF THIS ARTICLE AND THE RULES
AND REGULATIONS PROMULGATED THEREUNDER;
  6. TO SEEK INJUNCTIVE RELIEF IN THE SUPREME COURT IN THE COUNTY  WHERE
THE COMPLAINANT RESIDES; AND
  7.  TO  PROMULGATE  RULES  AND REGULATIONS TO REQUIRE BONDING, MINIMUM
CAPITAL REQUIREMENTS OR OTHER REASONABLE METHODS TO ENSURE THAT SPONSORS
ARE FINANCIALLY RESPONSIBLE TO FULLY COMPLY WITH THIS ARTICLE  AND  HAVE
THE  FINANCIAL  RESOURCES  TO MEET THEIR WARRANTY, CONTRACTUAL AND OTHER
OBLIGATIONS REQUIRED UNDER THIS SECTION. IN  CONNECTION  THEREWITH,  THE
COMMISSIONER  MAY  REQUIRE  THE  POSTING  OF  SURETY BONDS TO ENSURE THE
SATISFACTORY COMPLETION OF HPD PROJECTS.
  S 1237. RESOLUTION OF DISPUTES REGARDING HPD PROJECTS.  1.  ANY  OWNER
MAY  FILE  A  COMPLAINT  WITH THE COMMISSIONER AS A STATE ADMINISTRATIVE
AGENCY SEEKING RESOLUTION OF AN ALLEGATION  THAT  A  SUBSTANTIAL  DEFECT
EXISTS IN THE DELIVERED CONDITION, INSTALLATION, SERVICE OR CONSTRUCTION
OF  AN  HPD  PROJECT.  THE  COMMISSIONER SHALL PROMULGATE FORMS FOR SUCH
COMPLAINTS AND SUCH FORMS SHALL ALSO BE AVAILABLE  ON  THE  DEPARTMENT'S
WEB-SITE. FOR THE PURPOSE OF THIS ARTICLE, A SUBSTANTIAL DEFECT SHALL BE
A  DEFECT  OR A NUMBER OF DEFECTS OR OTHER CONDITIONS WHICH COLLECTIVELY
CAN REASONABLY BE EXPECTED TO COST ONE THOUSAND DOLLARS OR MORE TO CURE.
  2. COMPLAINTS FILED WITH THE COMMISSIONER RELATING  TO  THE  DELIVERED
CONDITION  OR  CONSTRUCTION  OF  AN HPD PROJECT SHALL BE MADE WITHIN ONE
YEAR AND TEN DAYS AFTER THE DATE OF THE  DELIVERY  OF  TITLE,  OR  OF  A
CERTIFICATE  OF OCCUPANCY, OR THE EXPIRATION OF ANY APPLICABLE PROVISION
OF A CONTRACT OR WARRANTY, WHICHEVER IS LATER.
  3. A. UPON THE DEPARTMENT'S DETERMINATION THAT  A  COMPLAINT,  ON  ITS
FACE,  ALLEGES  A  SUBSTANTIAL  DEFECT  IN  THE  DELIVERED  CONDITION OR
CONSTRUCTION OF AN HPD PROJECT, THE DEPARTMENT SHALL  NOTIFY  THE  OWNER
AND SPONSOR.
  B.  INITIALLY,  THE  DEPARTMENT  MAY ATTEMPT TO INFORMALLY RESOLVE THE
COMPLAINT. IF INFORMAL RESOLUTION OF THE COMPLAINT IS UNSUCCESSFUL,  THE
DEPARTMENT  SHALL RESOLVE SUCH COMPLAINTS AND DISPUTES BY ADMINISTRATIVE
HEARING, PURSUANT TO THE STATE ADMINISTRATIVE PROCEDURE ACT.
  C. THE DECISION SHALL PROVIDE COMPENSATION TO THE AGGRIEVED  PARTY  IN
AN AMOUNT WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO:

S. 7865                             6

  (1)  FILING  AND  RECORDING  FEES,  INSPECTION FEES AND OTHER REQUIRED
COSTS THAT THE AGGRIEVED PARTY WOULD NOT HAVE INCURRED HAD THE HOME  MET
APPLICABLE STANDARDS; AND
  (2) THE COST OF CONFORMING REPAIRS OR REPLACEMENTS.
  D.  THE DEPARTMENT MAY APPORTION LIABILITY BETWEEN TWO OR MORE PARTIES
OR BUSINESS ENTITIES WHERE APPROPRIATE.
  E. THE DECISION RESOLVING THE COMPLAINT SHALL BE IN WRITING AND  SHALL
PROVIDE THE REASON THEREFOR, A COPY OF THE DECISION SHALL BE PROVIDED TO
ALL INTERESTED PARTIES, INCLUDING THE SPONSOR AND OWNER.
  F.  ANY  PARTY MAY SEEK JUDICIAL REVIEW OF THE ADMINISTRATIVE DETERMI-
NATION PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE  LAW  AND
RULES.
  S  1238.  PENALTIES FOR VIOLATION OF THIS ARTICLE. ANY PERSON OR BUSI-
NESS ENTITY FOUND GUILTY, AFTER A HEARING, OF A VIOLATION OF THIS  ARTI-
CLE,  MAY  BE REQUIRED TO PAY A CIVIL PENALTY OF NOT MORE THAN TEN THOU-
SAND DOLLARS FOR EACH SUCH VIOLATION, BUT NOT MORE THAN  FIFTY  THOUSAND
DOLLARS  FOR  MORE THAN ONE VIOLATION RELATING TO EACH HPD PROJECT. SUCH
FINE SHALL BE COLLECTED AND DEPOSITED IN THE FUND.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date upon which it shall have become a law.

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