S T A T E O F N E W Y O R K
________________________________________________________________________
9657--A
I N A S S E M B L Y
March 24, 2016
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Introduced by M. of A. HARRIS, MOSLEY, SEPULVEDA, BLAKE -- Multi-Spon-
sored by -- M. of A. ABBATE -- read once and referred to the Committee
on Housing -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the multiple dwelling law, the limited liability company
law and the administrative code of the city of New York, in relation
to liability and penalties for illegal conversion
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 170-b to read as follows:
S 170-B. ILLEGAL CONVERSION. 1. FOR THE PURPOSES OF THIS SECTION, AN
ILLEGAL CONVERSION SHALL MEAN ANY CHANGE IN THE STRUCTURAL PARTS OR
EXISTING FACILITIES OF ANY BUILDING, INCLUDING, BUT NOT LIMITED TO, THE
SUBDIVISION OF ROOMS, OR ERECTION OR DEMOLITION OF WALLS, OR THE MOVING
OF ANY BUILDING FROM ONE LOCATION OR POSITION TO ANOTHER, IN VIOLATION
OF ANY STATE OR LOCAL LAW, ORDINANCE, CODE OR RULE OR REGULATION RELAT-
ING TO REAL PROPERTY, BUILDINGS OR MULTIPLE DWELLINGS.
2. A PERSON OR ENTITY WHO IS FOUND TO HAVE VIOLATED THE PROVISIONS OF
SUBDIVISION ONE OF THIS SECTION SHALL BE COMPELLED TO REMIT TO THE
DEPARTMENT OF TAXATION AND FINANCE THE TOTAL OF ALL TAX CREDITS AND/OR
REBATES RECEIVED IN THE CALENDAR YEAR IN WHICH SUCH PERSON OR ENTITY IS
FOUND TO HAVE COMMITTED SUCH VIOLATION WITHIN THIRTY DAYS AFTER NOTICE
OF THE VIOLATION. IN ADDITION, SUCH DEPARTMENT SHALL FORWARD TO THE
INTERNAL REVENUE SERVICE THE NAME AND ADDRESS OF ANY PERSON OR ENTITY
THAT HAS BEEN FOUND TO HAVE VIOLATED THE PROVISIONS OF SUBDIVISION ONE
OF THIS SECTION.
3. IN THE CASE OF AN ILLEGAL CONVERSION AUTHORIZED OR UNDERTAKEN BY A
LIMITED LIABILITY CORPORATION, THE ATTORNEY GENERAL MAY, IN HIS OR HER
DISCRETION, APPLY TO THE SUPREME COURT OF THE COUNTY IN WHICH THE REAL
PROPERTY THAT IS SUBJECT OF SUCH ILLEGAL CONVERSION LIES, FOR JUDICIALLY
DECREED DISSOLUTION PURSUANT TO SECTION SEVEN HUNDRED TWO OF THE LIMITED
LIABILITY COMPANY LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14686-02-6
A. 9657--A 2
4. FOR EACH DAY THAT SUCH PAYMENT TO THE DEPARTMENT OF TAXATION AND
FINANCE IS DELINQUENT, INTEREST SHALL ACCRUE TO BE PAID BY SUCH VIOLA-
TOR. FAILURE TO REMIT PURSUANT TO SUBDIVISION TWO OF THIS SECTION TO THE
DEPARTMENT OF TAXATION AND FINANCE ON THE TOTAL AMOUNT SHALL RESULT IN A
LATE PAYMENT PENALTY IN THE AMOUNT OF ONE PERCENT PER DAY UNTIL THE
PAYMENT IS MADE.
S 2. Section 702 of the limited liability company law is amended to
read as follows:
S 702. Judicial dissolution. 1. On application by or for a member,
the supreme court in the judicial district in which the office of the
limited liability company is located may decree dissolution of a limited
liability company whenever it is not reasonably practicable to carry on
the business in conformity with the articles of organization or operat-
ing agreement. A certified copy of the order of dissolution shall be
filed by the applicant with the department of state within thirty days
of its issuance.
2. ON APPLICATION BY THE ATTORNEY GENERAL, THE SUPREME COURT IN THE
JUDICIAL DISTRICT IN WHICH THE OFFICE OF THE LIMITED LIABILITY COMPANY
IS LOCATED MAY DECREE DISSOLUTION OF A LIMITED LIABILITY COMPANY WHENEV-
ER SUCH COMPANY IS FOUND TO HAVE VIOLATED THE PROVISIONS OF SECTION ONE
HUNDRED SEVENTY-B OF THE MULTIPLE DWELLING LAW.
S 3. The administrative code of the city of New York is amended by
adding a new section 28-210.5 to read as follows:
S 28-210.5 LIABILITY FOR ILLEGAL CONVERSION. A. FOR THE PURPOSES OF
THIS SECTION, AN "ILLEGAL CONVERSION" SHALL MEAN THE CREATION OR MODIFI-
CATION OF A HOUSING UNIT OR UNITS, FOR WHICH APPROVAL OR PERMITS ARE
REQUIRED BY LAW OR REGULATION, WITHOUT FIRST OBTAINING SUCH APPROVAL OR
PERMITS FROM THE DEPARTMENT OF BUILDINGS.
B. IN THE EVENT AN ILLEGAL CONVERSION HAS OCCURRED, DETERMINED BY
ORDER OR JUDGMENT OF THE ENVIRONMENTAL CONTROL BOARD, THE CONTRACTOR OR
INDIVIDUAL WHO PERFORMED THE CONSTRUCTION SHALL BE HELD LIABLE FOR ANY
MONETARY PENALTIES AS DESCRIBED IN SUBDIVISION C OF THIS SECTION.
C. ANY INDIVIDUAL OR CONTRACTOR WHO IS FOUND PERFORMING AN ILLEGAL
CONVERSION PURSUANT TO SUBDIVISION B OF THIS SECTION, SHALL REMIT TO THE
DEPARTMENT OF TAXATION AND FINANCE THE TOTAL OF ALL TAX CREDITS AND/OR
REBATES RECEIVED IN THE CALENDAR YEAR IN WHICH SUCH PERSON IS FOUND TO
HAVE COMMITTED SUCH VIOLATION WITHIN THIRTY DAYS AFTER NOTICE OF THE
VIOLATION. IN ADDITION, SUCH DEPARTMENT SHALL FORWARD TO THE INTERNAL
REVENUE SERVICE THE NAME AND ADDRESS OF ANY PERSON THAT HAS BEEN FOUND
TO HAVE VIOLATED THE PROVISIONS OF SUBDIVISION B OF THIS SECTION. FOR
EACH DAY THAT SUCH PAYMENT TO THE DEPARTMENT OF TAXATION AND FINANCE IS
DELINQUENT, INTEREST SHALL ACCRUE TO BE PAID BY SUCH VIOLATOR. FAILURE
TO REMIT PURSUANT TO THIS SUBDIVISION ON THE TOTAL AMOUNT SHALL RESULT
IN A LATE PAYMENT PENALTY IN THE AMOUNT OF ONE PERCENT PER DAY UNTIL THE
PAYMENT IS MADE.
D. IT SHALL BE A COMPLETE AND AFFIRMATIVE DEFENSE TO ANY VIOLATIONS
ISSUED BY THE DEPARTMENT OF BUILDINGS FOR ILLEGAL CONVERSIONS OR WORK
DONE WITHOUT A PERMIT THAT:
(I) THE DEPARTMENT OF FINANCE RECORDS AND THE DEPARTMENT OF BUILDINGS
RECORDS CONFLICT AS TO THE DESCRIPTION OR ASSESSMENT OF THE SUBJECT
PROPERTY; OR
(II) THE OWNER OF THE BUILDING PURCHASED SAID PROPERTY IN THE ILLEGAL
CONVERSION CONDITION.
S 4. This act shall take effect on the ninetieth day after it shall
have become a law.