Senate Bill S2778A

2015-2016 Legislative Session

Relates to vacancies and illegal use and occupancy with regard to cooperative or condominium conversion plans

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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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 01, 2016	print number 2778a
Feb 01, 2016	amend and recommit to housing, construction and community development
Jan 06, 2016	referred to housing, construction and community development
Jan 29, 2015	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

co-Sponsors

2015-S2778 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: General Business Law
Laws Affected:: Amd §352-eeee, Gen Bus L; add §5-b, amd §12, Emerg Ten Prot Act of 1974; amd §§26-512 & 26-516, NYC Ad Cd; amd §6, Emerg Hous Rent Cont L; amd §1802, NYC Chart
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5617
2011-2012: S386
2013-2014: S3157
2017-2018: S6376

2015-S2778 - Summary

Relates to vacancies and illegal use and occupancy with regard to cooperative or condominium conversion plans; makes it unlawful to permit or maintain any illegal use or occupancy of a premises subject to a conversion plan.

2015-S2778 - Sponsor Memo

                                BILL NUMBER:S2778

TITLE OF BILL:

An act to amend the general business law, in relation to vacancies and
illegal  use  and  occupancy  relating  to  cooperative or condominium
conversion plans; to amend the  emergency  tenant  protection  act  of
nineteen  seventy-four  and the administrative code of the city of New
York, in relation to leasing to business and other  entities;  and  to
amend  the  emergency  tenant protection act of nineteen seventy-four,
the emergency housing rent control law and the New York city  charter,
in relation to investigations and inspections by the city of New York

PURPOSE OR GENERAL IDEA OF BILL:

To  protect  tenants  living in a building undergoing a co-op or condo
conversion, require that the primary resident of a rent-regulated unit
be a natural person, and strengthen enforcement of rent laws.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends General Business Law § 352-eeee (2) (e) by  extending
the  period in which a landlord must maintain a long-term vacancy rate
that is not "excessive" in connection with a  co-op/condo  conversion,
The  law  now  bars  "warehousing" vacant apartments during the period
five months prior to filing a proposed  offering  statement  with  the

attorney  general.    The bill extends that ban to the period up until
the proposed offering statement is accepted by the attorney general.

Section 2 amends General Business Law § 352-eeee (4), to add that if a
landlord permits  illegal  use  or  occupancy  in  the  building,  the
attorney general may block the co-op/condo conversion.

Section 3 amends the Emergency Tenant Protection Act of 1974, adding a
new  section 5-b, requiring that a Rent-Stabilized unit that is leased
by a corporation be occupied as  a  primary  residence  by  a  natural
person who is a current or retired employee of the corporation.

Section  4 amends the Emergency Tenant Protection Act of 1974 § 12 (a)
(3) (i), authorizing the commissioner to  impose  civil  penalties  on
parties that violate section 3 of this act.

Section  5  amends  the  Administrative Code of the City of New York
25-912, adding a  new  subdivision  d,  prohibiting  a  landlord  from
knowingly  renting a rent-regulated unit to a person or entity that is
not using the accommodation as a primary residence.

Section 6 amends the Administrative Code of the City  of  New  York  g
26-516 (c) (1), authorizing the commissioner to impose civil penalties
on parties that violate section 5 of this act.

Section  7  amends  the  Emergency Tenant Protection Act of 1974 § 12,
adding a new Paragraph 9, authorizing the New York City Department  of
Housing  Preservation  and Development to enforce portions of the Rent
Stabilization law under  an  agreement  with  the  State  Division  of
Housing and Community Renewal.


Section  8  amends  the  Emergency  Rent  Control Laws of 1946§ 6 (I),
adding a new paragraph a authorizing the New York City  Department  of
Housing  Preservation  and Development to enforce portions of the Rent
Control law under an agreement with the State Division of Housing  and
Community Renewal.

Section  9  amends  the  New  York  City  Charter § 1802, adding a new
subdivision 7, authorizing the New York  City  Department  of  Housing
Preservation and Development to enter into an agreement with the State
Division  of Housing and Community Renewal to enforce Rent Control and
Rent Stabilization.

JUSTIFICATION:

Landlords who are converting rental properties into co-ops and  condos
often  begin  evicting  tenants  and letting apartments stay vacant as
soon as the conversion prospectus is filed with the attorney  general,
in  order  to increase the value of the shares or units they intend to
sell on the open market. This bill  would  reduce  the  incentive  and
ability  to  warehouse  units  while  the attorney general reviews the
proposed offering statement.

In many cases, landlords allow unlawful use of their properties - such
as illegal hotels - in connection with  an  effort  to  convert  their
properties to co-ops or condos. They do this to harass tenants to move
out  or  purchase,  or  to make more money even when apartments are no
longer occupied by residential tenants. This practice  harms  tenants,
and would be prohibited by this legislation.

There  is  a  growing  problem  of  landlords  renting  apartments  to
companies  that  in  turn  rent  them  out  to  transients  (tourists,
short-stay  occupants) as illegal hotels. This bill would require that
rent-regulated apartments be used for residential purposes.

The New York State Division of Housing and Community Renewal lacks the
resources to effectively enforce many provisions of the rent laws  and
regulations  in  New  York City. This bill would authorize the City of
New York to enforce these provisions if the City and DHCR agree.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Sections 3, 4, 5, and 6 shall take effect after sixty days. All  other
provisions shall take effect immediately.

2015-S2778 - Bill Text download pdf

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

                                  2778

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 29, 2015
                               ___________

Introduced  by Sens. KRUEGER, HOYLMAN -- 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 general business law, in relation to vacancies and
  illegal use and  occupancy  relating  to  cooperative  or  condominium
  conversion  plans;  to  amend  the  emergency tenant protection act of
  nineteen seventy-four and the administrative code of the city  of  New
  York,  in  relation  to leasing to business and other entities; and to
  amend the emergency tenant protection act  of  nineteen  seventy-four,
  the  emergency housing rent control law and the New York city charter,
  in relation to investigations and inspections by the city of New York

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

  Section  1.  Paragraph (e) of subdivision 2 of section 352-eeee of the
general business law, as added by chapter 555 of the laws  of  1982,  is
amended to read as follows:
  (e)  The  attorney general finds that an excessive number of long-term
vacancies did not exist on the date that the offering statement or pros-
pectus was first submitted to the department  of  law  OR  AT  ANY  TIME
BETWEEN  THAT  DATE  AND  THE  ISSUANCE  OF THE LETTER FROM THE ATTORNEY
GENERAL STATING THAT THE OFFERING STATEMENT OR  PROSPECTUS  REQUIRED  IN
SUBDIVISION ONE OF SECTION THREE HUNDRED FIFTY-TWO-E OF THIS ARTICLE HAS
BEEN  FILED.  "Long-term vacancies" shall mean dwelling units not leased
or occupied by bona fide tenants for more than five months prior to  the
date  of  such  submission to the department of law OR PRIOR TO ANY TIME
BETWEEN THAT DATE AND THE ISSUANCE OF SUCH LETTER.    "Excessive"  shall
mean a vacancy rate in excess of the greater of (i) ten percent and (ii)
a  percentage  that  is  double  the normal average vacancy rate for the
building or group of buildings or development for two years prior to the
January preceding the date the  offering  statement  or  prospectus  was
first submitted to the department of law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04486-01-5

S. 2778                             2

  S 2. Subdivision 4 of section 352-eeee of the general business law, as
added by chapter 555 of the laws of 1982, is amended to read as follows:
  4.  It  shall  be  unlawful  for any person to engage in any course of
conduct, including, but not limited to, interruption  or  discontinuance
of  essential  services, which substantially interferes with or disturbs
the comfort, repose, peace or quiet of any tenant in his use or occupan-
cy of his dwelling unit or the facilities related thereto, OR PERMITTING
OR MAINTAINING ANY ILLEGAL USE OR OCCUPANCY OF THE PREMISES. The  attor-
ney  general may apply to a court of competent jurisdiction for an order
restraining such conduct and, if  he  deems  it  appropriate,  an  order
restraining  the owner from selling the shares allocated to the dwelling
unit or the dwelling unit itself or from proceeding  with  the  plan  of
conversion;  provided  that  nothing contained herein shall be deemed to
preclude the tenant from applying on his own behalf for similar relief.
  S 3. Section 4 of chapter 576 of the laws  of  1974  constituting  the
emergency  tenant  protection act of nineteen seventy-four is amended by
adding a new section 5-b to read as follows:
  S 5-B. TENANCY. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS ACT
OR THE PROVISIONS OF ANY CONTRACT, LEASE OR RENTAL AGREEMENT,  NO  OWNER
OR  ANY  PERSON  ACTING  ON  HIS OR HER BEHALF, AFTER THIS SECTION TAKES
EFFECT, SHALL ESTABLISH OR RENEW A CONTRACT, LEASE, OR RENTAL  AGREEMENT
FOR OCCUPANCY OF A HOUSING ACCOMMODATION SUBJECT TO THIS ACT:
  (I)  WHERE  THE  OWNER,  OR  PERSON ACTING ON BEHALF OF THE OWNER, HAS
REASON TO KNOW THAT THE TENANT WILL NOT OCCUPY THE HOUSING ACCOMMODATION
AS HIS OR HER PRIMARY RESIDENCE;
  (II) WHERE THE TENANT IS A CORPORATION, PARTNERSHIP, OR OTHER BUSINESS
OR NOT-FOR-PROFIT  ENTITY,  UNLESS  THE  HOUSING  ACCOMMODATION  (A)  IS
INTENDED  TO  BE  OCCUPIED  BY  AN  OFFICER,  PARTNER, EMPLOYEE OR OTHER
NATURAL PERSON PARTICIPATING IN THE DAY-TO-DAY OPERATIONS OF THE  TENANT
ENTITY (OR WAS SUCH A PERSON AT THE COMMENCEMENT OF THE OCCUPANCY AND IS
NOW RETIRED FROM BEING SUCH A PERSON) WHO WILL OCCUPY THE HOUSING ACCOM-
MODATION  AS  HIS  OR HER PRIMARY RESIDENCE, OR (B) THE HOUSING ACCOMMO-
DATION IS TO BE OCCUPIED UNDER PARAGRAPHS SIX OR TEN OF SUBDIVISION A OF
SECTION FIVE OF THIS ACT.
  S 4. Clause (i) of paragraph 3 of  subdivision  a  of  section  12  of
section  4 of chapter 576 of the laws of 1974 constituting the emergency
tenant protection act of nineteen seventy-four, as  amended  by  chapter
480 of the laws of 2009, is amended to read as follows:
  (i)  to  have  violated  an order of the division OR SECTION FIVE-B OF
THIS ACT the commissioner may impose by administrative order after hear-
ing, a civil penalty in the amount of one thousand dollars for the first
such offense and two thousand dollars for each subsequent offense; or
  S 5. Section 26-512 of the administrative code of the city of New York
is amended by adding a new subdivision g to read as follows:
  G. NOTWITHSTANDING ANY INCONSISTENT  PROVISION  OF  THIS  ACT  OR  THE
PROVISIONS  OF  ANY CONTRACT, LEASE OR RENTAL AGREEMENT, NO OWNER OR ANY
PERSON ACTING ON HIS OR HER BEHALF, AFTER  THIS  SECTION  TAKES  EFFECT,
SHALL  ESTABLISH  OR  RENEW  A  CONTRACT, LEASE, OR RENTAL AGREEMENT FOR
OCCUPANCY OF A HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER:
  (I) WHERE THE OWNER, OR PERSON ACTING ON  BEHALF  OF  THE  OWNER,  HAS
REASON TO KNOW THAT THE TENANT WILL NOT OCCUPY THE HOUSING ACCOMMODATION
AS HIS OR HER PRIMARY RESIDENCE;
  (II) WHERE THE TENANT IS A CORPORATION, PARTNERSHIP, OR OTHER BUSINESS
OR  NOT-FOR-PROFIT  ENTITY,  UNLESS  THE  HOUSING  ACCOMMODATION  (A) IS
INTENDED TO BE OCCUPIED  BY  AN  OFFICER,  PARTNER,  EMPLOYEE  OR  OTHER
NATURAL  PERSON PARTICIPATING IN THE DAY-TO-DAY OPERATIONS OF THE TENANT

S. 2778                             3

ENTITY (OR WAS SUCH A PERSON AT THE COMMENCEMENT OF THE OCCUPANCY AND IS
NOW RETIRED FROM BEING SUCH A PERSON) WHO WILL OCCUPY THE HOUSING ACCOM-
MODATION AS HIS OR HER PRIMARY RESIDENCE, OR (B)  THE  HOUSING  ACCOMMO-
DATION  IS  TO  BE  OCCUPIED UNDER SUBPARAGRAPH (C) OF PARAGRAPH NINE OF
SUBDIVISION C OF SECTION 26-511 OF THIS CHAPTER.
  S 6. Paragraph 1 of subdivision c of section 26-516 of the administra-
tive code of the city of New York, as amended by chapter 480 of the laws
of 2009, is amended to read as follows:
  (1) to have violated an order of the  division  OR  SUBDIVISION  G  OF
SECTION  26-512  THIS CHAPTER the commissioner may impose by administra-
tive order after hearing, a civil penalty in the amount of one  thousand
dollars  for  the  first  such offense and two thousand dollars for each
subsequent offense; or
  S 7. Subdivision a of section 12 of section 4 of chapter  576  of  the
laws  of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four is amended by adding a new  paragraph  9  to  read  as
follows:
  (9)  THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL MAY AUTHORIZE
THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT IN  THE  CITY  OF
NEW  YORK,  OR  ITS  SUCCESSOR AGENCY, TO EXERCISE ANY OF THE DIVISION'S
POWERS UNDER THIS ACT WITHIN THE CITY OF NEW YORK, PURSUANT TO AGREEMENT
WITH THAT DEPARTMENT OR AGENCY.
  S 8. Subdivision 1 of section 6 of chapter 274 of the  laws  of  1946,
constituting the emergency housing rent control law, as amended by chap-
ter 337 of the laws of 1961, is amended to read as follows:
  1.    (A)  THE  STATE  DIVISION  OF  HOUSING AND COMMUNITY RENEWAL MAY
AUTHORIZE THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT IN  THE
CITY  OF NEW YORK, OR ITS SUCCESSOR AGENCY, TO EXERCISE ANY OF THE DIVI-
SION'S POWERS UNDER THIS ACT WITHIN THE CITY OF NEW  YORK,  PURSUANT  TO
AGREEMENT WITH THAT DEPARTMENT OR AGENCY.
  (B)  The  commission  is  authorized to make such studies and investi-
gations, to conduct such hearings, and to obtain such information as the
commission deems necessary or proper in prescribing  any  regulation  or
order  under  this  act or in the administration and enforcement of this
act and regulations and orders thereunder.
  S 9. Section 1802 of the New York city charter is amended by adding  a
new subdivision 7 to read as follows:
  7.  ALL  POWERS,  RIGHTS  AND  DUTIES AUTHORIZED BY AND PURSUANT TO AN
AGREEMENT WITH THE NEW YORK STATE  DIVISION  OF  HOUSING  AND  COMMUNITY
RENEWAL,  OR ITS SUCCESSOR AGENCY, UNDER SECTION TWELVE OF THE EMERGENCY
TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR AND  SUBDIVISION  ONE  OF
SECTION SIX OF THE EMERGENCY HOUSING RENT CONTROL LAW.
  S  10. Severability.  If any provision of this act, or any application
of any provision of this act, is held to  be  invalid,  that  shall  not
affect the validity or effectiveness of any other provision of this act,
or of any other application of any provision of this act.
  S  11.  This  act shall take effect immediately and shall apply to any
matter pending before the attorney general at or after the time this act
becomes a law; provided, however, that:
  (a) the amendments to section 352-eeee of  the  general  business  law
made by sections one and two of this act shall not affect the expiration
of such section and shall expire therewith;
  (b)  sections  three, four, five and six of this act shall take effect
on the sixtieth day after it shall have become a law, provided that
  (i) the amendments to the emergency tenant protection act of  nineteen
seventy-four made by sections three and four of this act shall expire on

S. 2778                             4

the same date as such act expires and shall not affect the expiration of
such  act  as provided in section 17 of chapter 576 of the laws of 1974;
and
  (ii)  the  amendments to sections 26-512 and 26-516 of the administra-
tive code of the city of New York made by sections five and six of  this
act  shall expire on the same date as such sections expire and shall not
affect the expiration of such sections as provided in section 26-520  of
such code; and
  (c) provided that the amendments to section 12 of the emergency tenant
protection  act  of  nineteen seventy-four made by section seven of this
act shall expire on the same date as such  act  expires  and  shall  not
affect  the  expiration of such act as provided in section 17 of chapter
576 of the laws of 1974; and provided that the amendments to  section  6
of  the emergency housing rent control law made by section eight of this
act shall expire on the same date as such  law  expires  and  shall  not
affect  the  expiration  of  such  law  as  provided in subdivision 2 of
section 1 of chapter 274 of the laws of 1946.

co-Sponsors

2015-S2778A (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: General Business Law
Laws Affected:: Amd §352-eeee, Gen Bus L; add §5-b, amd §12, Emerg Ten Prot Act of 1974; amd §§26-512 & 26-516, NYC Ad Cd; amd §6, Emerg Hous Rent Cont L; amd §1802, NYC Chart
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5617
2011-2012: S386
2013-2014: S3157
2017-2018: S6376

2015-S2778A (ACTIVE) - Summary

2015-S2778A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2778A

 TITLE OF BILL :  An act to amend the general business law, in
relation to vacancies and illegal use and occupancy relating to
cooperative or condominium conversion plans; to amend the emergency
tenant protection act of nineteen seventy-four and the administrative
code of the city of New York, in relation to leasing to business and
other entities; and to amend the emergency tenant protection act of
nineteen seventy-four, the emergency housing rent control law and the
New York city charter, in relation to investigations and inspections
by the city of New York

 PURPOSE OR GENERAL IDEA OF BILL :

To protect tenants living in a building undergoing a co-op or condo
conversion, require that the primary resident of a rent-regulated unit
be a natural person, and strengthen enforcement of rent laws.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends General Business Law § 352-eeee (2) (e) by extending
the period in which a landlord must maintain a long-term vacancy rate
that is not "excessive" in connection with a co-op/condo conversion,
The law now bars "warehousing" vacant apartments during the period
five months prior to filing a proposed offering statement with the
attorney general. The bill extends that ban to the period up until the

proposed offering statement is accepted by the attorney general.

Section 2 amends General Business Law § 352-eeee (4), to add that if a
landlord permits illegal use or occupancy in the building, the
attorney general may block the co-op/condo conversion.

Section 3 amends the Emergency Tenant Protection Act of 1974, adding a
new section 5-b, requiring that a Rent-Stabilized unit that is leased
by a corporation be occupied as a primary residence by a natural
person who is a current or retired employee of the corporation.

Section 4 amends the Emergency Tenant Protection Act of 1974 § 12 (a)
(3) (i), authorizing the commissioner to impose civil penalties on
parties that violate section 3 of this act.

Section 5 amends the Administrative Code of the City of New York §
26-512, adding a new subdivision g, prohibiting a landlord from
knowingly renting a rent-regulated unit to a person or entity that is
not using the accommodation as a primary residence.

Section 6 amends the Administrative Code of the City of New York g
26-516 (c) (1), authorizing the commissioner to impose civil penalties
on parties that violate section 5 of this act.

Section 7 amends the Emergency Tenant Protection Act of 1974 § 12,
adding a new Paragraph 9, authorizing the New York City Department of
Housing Preservation and Development to enforce portions of the Rent
Stabilization law under an agreement with the State Division of
Housing and Community Renewal.

Section 8 amends the Emergency Rent Control Laws of 1946S 6 (I),
adding a new paragraph a authorizing the New York City Department of
Housing Preservation and Development to enforce portions of the Rent
Control law under an agreement with the State Division of Housing and
Community Renewal.

Section 9 amends the New York City Charter § 1802, adding a new
subdivision 7, authorizing the New York City Department of Housing
Preservation and Development to enter into an agreement with the State

Division of Housing and Community Renewal to enforce Rent Control and
Rent Stabilization.

 JUSTIFICATION :

Landlords who are converting rental properties into co-ops and condos
often begin evicting tenants and letting apartments stay vacant as
soon as the conversion prospectus is filed with the attorney general,
in order to increase the value of the shares or units they intend to
sell on the open market. This bill would reduce the incentive and
ability to warehouse units while the attorney general reviews the
proposed offering statement.

In many cases, landlords allow unlawful use of their properties - such
as illegal hotels - in connection with an effort to convert their
properties to co-ops or condos. They do this to harass tenants to move
out or purchase, or to make more money even when apartments are no
longer occupied by residential tenants. This practice harms tenants,
and would be prohibited by this legislation.

There is a growing problem of landlords renting apartments to
companies that in turn rent them out to transients (tourists,
short-stay occupants) as illegal hotels. This bill would require that
rent-regulated apartments be used for residential purposes.

The New York State Division of Housing and Community Renewal lacks the
resources to effectively enforce many provisions of the rent laws and
regulations in New York City. This bill would authorize the City of
New York to enforce these provisions if the City and DHCR agree.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Sections 3, 4, 5, and 6 shall take effect after sixty days. All other
provisions shall take effect immediately.

2015-S2778A (ACTIVE) - Bill Text download pdf

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

                                 2778--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 29, 2015
                               ___________

Introduced  by Sens. KRUEGER, HOYLMAN, PERKINS -- read twice and ordered
  printed, and when printed to be committed to the Committee on Housing,
  Construction and Community Development -- recommitted to the Committee
  on Housing, Construction and Community Development in accordance  with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in relation to  vacancies  and
  illegal  use  and  occupancy  relating  to  cooperative or condominium
  conversion plans; to amend the  emergency  tenant  protection  act  of
  nineteen  seventy-four  and the administrative code of the city of New
  York, in relation to leasing to business and other  entities;  and  to
  amend  the  emergency  tenant protection act of nineteen seventy-four,
  the emergency housing rent control law and the New York city  charter,
  in relation to investigations and inspections by the city of New York

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

  Section 1. Paragraph (e) of subdivision 2 of section 352-eeee  of  the
general  business  law,  as added by chapter 555 of the laws of 1982, is
amended to read as follows:
  (e) The attorney general finds that an excessive number  of  long-term
vacancies did not exist on the date that the offering statement or pros-
pectus  was  first  submitted  to  the  department of law OR AT ANY TIME
BETWEEN THAT DATE AND THE ISSUANCE  OF  THE  LETTER  FROM  THE  ATTORNEY
GENERAL  STATING  THAT  THE OFFERING STATEMENT OR PROSPECTUS REQUIRED IN
SUBDIVISION ONE OF SECTION THREE HUNDRED FIFTY-TWO-E OF THIS ARTICLE HAS
BEEN FILED.  "Long-term vacancies" shall mean dwelling units not  leased
or  occupied by bona fide tenants for more than five months prior to the
date of such submission to the department of law OR PRIOR  TO  ANY  TIME
BETWEEN  THAT  DATE  AND THE ISSUANCE OF SUCH LETTER.  "Excessive" shall
mean a vacancy rate in excess of the greater of (i) ten percent and (ii)
a percentage that is double the normal  average  vacancy  rate  for  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04486-02-6

S. 2778--A                          2

building or group of buildings or development for two years prior to the
January  preceding  the  date  the  offering statement or prospectus was
first submitted to the department of law.
  S 2. Subdivision 4 of section 352-eeee of the general business law, as
added by chapter 555 of the laws of 1982, is amended to read as follows:
  4.  It  shall  be  unlawful  for any person to engage in any course of
conduct, including, but not limited to, interruption  or  discontinuance
of  essential  services, which substantially interferes with or disturbs
the comfort, repose, peace or quiet of any tenant in his use or occupan-
cy of his dwelling unit or the facilities related thereto, OR PERMITTING
OR MAINTAINING ANY ILLEGAL USE OR OCCUPANCY OF THE PREMISES. The  attor-
ney  general may apply to a court of competent jurisdiction for an order
restraining such conduct and, if  he  deems  it  appropriate,  an  order
restraining  the owner from selling the shares allocated to the dwelling
unit or the dwelling unit itself or from proceeding  with  the  plan  of
conversion;  provided  that  nothing contained herein shall be deemed to
preclude the tenant from applying on his own behalf for similar relief.
  S 3. Section 4 of chapter 576 of the laws  of  1974  constituting  the
emergency  tenant  protection act of nineteen seventy-four is amended by
adding a new section 5-b to read as follows:
  S 5-B. TENANCY. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS ACT
OR THE PROVISIONS OF ANY CONTRACT, LEASE OR RENTAL AGREEMENT,  NO  OWNER
OR  ANY  PERSON  ACTING  ON  HIS OR HER BEHALF, AFTER THIS SECTION TAKES
EFFECT, SHALL ESTABLISH OR RENEW A CONTRACT, LEASE, OR RENTAL  AGREEMENT
FOR OCCUPANCY OF A HOUSING ACCOMMODATION SUBJECT TO THIS ACT:
  (I)  WHERE  THE  OWNER,  OR  PERSON ACTING ON BEHALF OF THE OWNER, HAS
REASON TO KNOW THAT THE TENANT WILL NOT OCCUPY THE HOUSING ACCOMMODATION
AS HIS OR HER PRIMARY RESIDENCE;
  (II) WHERE THE TENANT IS A CORPORATION, PARTNERSHIP, OR OTHER BUSINESS
OR NOT-FOR-PROFIT  ENTITY,  UNLESS  THE  HOUSING  ACCOMMODATION  (A)  IS
INTENDED  TO  BE  OCCUPIED  BY  AN  OFFICER,  PARTNER, EMPLOYEE OR OTHER
NATURAL PERSON PARTICIPATING IN THE DAY-TO-DAY OPERATIONS OF THE  TENANT
ENTITY (OR WAS SUCH A PERSON AT THE COMMENCEMENT OF THE OCCUPANCY AND IS
NOW RETIRED FROM BEING SUCH A PERSON) WHO WILL OCCUPY THE HOUSING ACCOM-
MODATION  AS  HIS  OR HER PRIMARY RESIDENCE, OR (B) THE HOUSING ACCOMMO-
DATION IS TO BE OCCUPIED UNDER PARAGRAPHS SIX OR TEN OF SUBDIVISION A OF
SECTION FIVE OF THIS ACT.
  S 4. Clause (i) of paragraph 3 of  subdivision  a  of  section  12  of
section  4 of chapter 576 of the laws of 1974 constituting the emergency
tenant protection act of nineteen seventy-four, as amended by section 27
of part A of chapter 20 of the laws of  2015,  is  amended  to  read  as
follows:
  (i)  to  have  violated  an order of the division OR SECTION FIVE-B OF
THIS ACT the commissioner may impose by administrative order after hear-
ing, a civil penalty at minimum in the amount of one thousand but not to
exceed two thousand dollars for the first such offense, and  at  minimum
in  the  amount of two thousand but not to exceed three thousand dollars
for each subsequent offense; or
  S 5. Section 26-512 of the administrative code of the city of New York
is amended by adding a new subdivision g to read as follows:
  G. NOTWITHSTANDING ANY INCONSISTENT  PROVISION  OF  THIS  LAW  OR  THE
PROVISIONS  OF  ANY CONTRACT, LEASE OR RENTAL AGREEMENT, NO OWNER OR ANY
PERSON ACTING ON HIS OR HER BEHALF, AFTER  THIS  SECTION  TAKES  EFFECT,
SHALL  ESTABLISH  OR  RENEW  A  CONTRACT, LEASE, OR RENTAL AGREEMENT FOR
OCCUPANCY OF A HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER:

S. 2778--A                          3

  (I) WHERE THE OWNER, OR PERSON ACTING ON  BEHALF  OF  THE  OWNER,  HAS
REASON TO KNOW THAT THE TENANT WILL NOT OCCUPY THE HOUSING ACCOMMODATION
AS HIS OR HER PRIMARY RESIDENCE;
  (II) WHERE THE TENANT IS A CORPORATION, PARTNERSHIP, OR OTHER BUSINESS
OR  NOT-FOR-PROFIT  ENTITY,  UNLESS  THE  HOUSING  ACCOMMODATION  (A) IS
INTENDED TO BE OCCUPIED  BY  AN  OFFICER,  PARTNER,  EMPLOYEE  OR  OTHER
NATURAL  PERSON PARTICIPATING IN THE DAY-TO-DAY OPERATIONS OF THE TENANT
ENTITY (OR WAS SUCH A PERSON AT THE COMMENCEMENT OF THE OCCUPANCY AND IS
NOW RETIRED FROM BEING SUCH A PERSON) WHO WILL OCCUPY THE HOUSING ACCOM-
MODATION AS HIS OR HER PRIMARY RESIDENCE, OR (B)  THE  HOUSING  ACCOMMO-
DATION  IS  TO  BE  OCCUPIED UNDER SUBPARAGRAPH (C) OF PARAGRAPH NINE OF
SUBDIVISION C OF SECTION 26-511 OF THIS CHAPTER.
  S 6. Paragraph 1 of subdivision c of section 26-516 of the administra-
tive code of the city of New York, as amended by section 23 of part A of
chapter 20 of the laws of 2015, is amended to read as follows:
  (1) to have violated an order of the division OR SECTION FIVE-B OF THE
EMERGENCY TENANT PROTECTION ACT the commissioner may impose by  adminis-
trative order after hearing, a civil penalty at minimum in the amount of
one  thousand  but not to exceed two thousand dollars for the first such
offense, and at a minimum in the amount  of  two  thousand  but  not  to
exceed three thousand dollars for each subsequent offense; or
  S  7.  Subdivision  a of section 12 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of  nine-
teen  seventy-four  is  amended  by  adding a new paragraph 9 to read as
follows:
  (9) THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL MAY  AUTHORIZE
THE  DEPARTMENT  OF  HOUSING PRESERVATION AND DEVELOPMENT IN THE CITY OF
NEW YORK, OR ITS SUCCESSOR AGENCY, TO EXERCISE  ANY  OF  THE  DIVISION'S
POWERS UNDER THIS ACT WITHIN THE CITY OF NEW YORK, PURSUANT TO AGREEMENT
WITH THAT DEPARTMENT OR AGENCY.
  S  8.  Subdivision  1 of section 6 of chapter 274 of the laws of 1946,
constituting the emergency housing rent control law, as amended by chap-
ter 337 of the laws of 1961, is amended to read as follows:
  1.   (A) THE STATE DIVISION  OF  HOUSING  AND  COMMUNITY  RENEWAL  MAY
AUTHORIZE  THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT IN THE
CITY OF NEW YORK, OR ITS SUCCESSOR AGENCY, TO EXERCISE ANY OF THE  DIVI-
SION'S  POWERS  UNDER  THIS ACT WITHIN THE CITY OF NEW YORK, PURSUANT TO
AGREEMENT WITH THAT DEPARTMENT OR AGENCY.
  (B) The commission is authorized to make  such  studies  and  investi-
gations, to conduct such hearings, and to obtain such information as the
commission  deems  necessary  or proper in prescribing any regulation or
order under this act or in the administration and  enforcement  of  this
act and regulations and orders thereunder.
  S  9. Section 1802 of the New York city charter is amended by adding a
new subdivision 7 to read as follows:
  7. ALL POWERS, RIGHTS AND DUTIES AUTHORIZED  BY  AND  PURSUANT  TO  AN
AGREEMENT  WITH  THE  NEW  YORK  STATE DIVISION OF HOUSING AND COMMUNITY
RENEWAL, OR ITS SUCCESSOR AGENCY, UNDER SECTION TWELVE OF THE  EMERGENCY
TENANT  PROTECTION  ACT  OF NINETEEN SEVENTY-FOUR AND SUBDIVISION ONE OF
SECTION SIX OF THE EMERGENCY HOUSING RENT CONTROL LAW.
  S 10. Severability.  If any provision of this act, or any  application
of  any  provision  of  this  act, is held to be invalid, that shall not
affect the validity or effectiveness of any other provision of this act,
or of any other application of any provision of this act.

S. 2778--A                          4

  S 11. This act shall take effect immediately and shall  apply  to  any
matter pending before the attorney general at or after the time this act
becomes a law; provided, however, that:
  (a)  the  amendments  to  section 352-eeee of the general business law
made by sections one and two of this act shall not affect the expiration
of such section and shall expire therewith;
  (b) sections three, four, five and six of this act shall  take  effect
on the sixtieth day after it shall have become a law, provided that:
  (i)  the amendments to the emergency tenant protection act of nineteen
seventy-four made by sections three and four of this act shall expire on
the same date as such act expires and shall not affect the expiration of
such act as provided in section 17 of chapter 576 of the laws  of  1974;
and
  (ii)  the  amendments to sections 26-512 and 26-516 of the administra-
tive code of the city of New York made by sections five and six of  this
act  shall expire on the same date as such sections expire and shall not
affect the expiration of such sections as provided in section 26-520  of
such code; and
  (c) provided that the amendments to section 12 of the emergency tenant
protection  act  of  nineteen seventy-four made by section seven of this
act shall expire on the same date as such  act  expires  and  shall  not
affect  the  expiration of such act as provided in section 17 of chapter
576 of the laws of 1974; and provided that the amendments to  section  6
of  the emergency housing rent control law made by section eight of this
act shall expire on the same date as such  law  expires  and  shall  not
affect  the  expiration  of  such  law  as  provided in subdivision 2 of
section 1 of chapter 274 of the laws of 1946.

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Senate Bill S2778A

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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Brad Hoylman-Sigal

Bill Perkins

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