BILL NUMBER:S2281                 Revised 05/01/15

TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to requiring that the stabilization code provide that upon
the failure of the tenant to timely renew his or her lease or rental
agreement, such lease or agreement may be deemed to have been renewed

PURPOSE OR GENERAL IDEA OF BILL:

To amend the administrative code of the City of New York to provide
that tenants who remain in possession of their apartment without
signing a legally delivered renewal lease shall be deemed to have
renewed their lease upon the same terms and conditions as the renewal
lease had the renewal lease been timely accepted.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 This bill amends subdivision c of section 26-511 of the
administrative Code of the City of New York to provide that a rent
stabilized tenant who (1) has received the requisite notice of lease
renewal, (2) has not responded to the owner regarding whether the
tenant intends to remain in occupancy after the expiration of the
lease and, if so, as to the length of such renewal, and (3) then does
remain in occupancy after the expiration of their lease, may be deemed
              

to have their lease renewal by the owner subject to the same terms and
conditions of the prior renewal lease. Such lease shall be deemed
renewed at the legal regulated rent together with any Rent Guidelines
Board increases that would have been applicable had the offer of a
renewal lease been timely accepted.

Section 2 provides that the effective date shall be thirty days after
enactment.

JUSTIFICATION:

Since 2000, Section 2523.59 c(2) of the Rent Stabilization Code has
provided for the implementation of deemed leases in precisely the same
manner as set forth in the proposed legislation. However, in a recent
decision by the Appellate Division, Second Department, in the case of
Samson Management v. Hubert, the Code provision was invalidated
because of the Court's ruling that the regulation conflicts with
Section 232-c of the Real Property law. The Real Property Law
provision states that "(w)here a tenant whose term is longer than one
month holds over after the expiration of such term, such holding over
shall not give to the landlord the option to hold the tenant for a new
term solely by virtue of the tenant's holding over." Although the
legislative history to Section 232-c indicates that "restrictions
provided by rent control statutes" supersede the provisions of Section
232-c, the Court's ruling has subsequently been held dispositive.

Prior to existence of deemed leases owners would commence litigation
against tenants who failed to renew. The outcome, after expending fees
for attorneys and crowding the Housing Court calendar, was that
tenants would be provided the opportunity to then execute the renewal
lease to forestall eviction. The deemed lease provision of the Rent


Code ensured that owners would not need to pursue needless litigation
and that tenants would remain protected notwithstanding their failure
to execute renewal leases, and be spared from having to appear in
housing court.

This legislation will have the effect of establishing the deemed lease
mechanism as a matter of law.

PRIOR LEGISLATIVE HISTORY:

2013/2014: S. 4032 Referred to Housing and Community Construction
Committee
2012: S.7732 Referred to Rules

FISCAL IMPLICATIONS:

Undetermined savings from a reduction of caseload in Housing Court.

EFFECTIVE DATE:

This act shall take effect immediately.