S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5187
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred to the
   Committee on Codes
 
 AN ACT to amend the penal law, in relation to establishing the crime  of
   illegal  conversion  or  alteration  of real property and to amend the
   administrative code of the city of New  York,  in  relation  to  civil
   penalties for unlawful conversions

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The penal law is amended by adding two new sections  145.75
 and 145.80 to read as follows:
 § 145.75 DEFINITION; CONVERSION OR ALTERATION OF REAL PROPERTY.
   FOR  PURPOSES OF SECTION 145.80 OF THIS ARTICLE, "CONVERSION OR ALTER-
 ATION" SHALL MEAN ANY CHANGE IN THE STRUCTURAL PARTS OR EXISTING FACILI-
 TIES 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.
 § 145.80 ILLEGAL CONVERSION OR ALTERATION OF REAL PROPERTY.
   A PERSON IS GUILTY OF ILLEGAL CONVERSION OR ALTERATION OF REAL PROPER-
 TY WHEN:
   1. (A) HE OR SHE IS THE OWNER OR MANAGER OF REAL PROPERTY AND KNOWING-
 LY  PARTICIPATED  OR  AUTHORIZED THE ILLEGAL ALTERATION OR CONVERSION OF
 SUCH PROPERTY IN VIOLATION OF ANY STATE OR LOCAL LAW, ORDINANCE, CODE OR
 RULE OR REGULATION RELATING TO  REAL  PROPERTY,  BUILDINGS  OR  MULTIPLE
 DWELLINGS; OR
   (B)  HE  OR  SHE  IS  A  TENANT  OF REAL PROPERTY AND MAKES AN ILLEGAL
 CONVERSION OR ALTERATION OF SUCH PROPERTY WITHOUT THE KNOWLEDGE  OF  THE
 OWNER  THEREOF,  AND  SUCH ALTERATION OR CONVERSION OF THE REAL PROPERTY
 WAS IN VIOLATION OF ANY STATE OR LOCAL LAW, ORDINANCE, CODE OR  RULE  OR
 REGULATION  RELATING  TO REAL PROPERTY, BUILDINGS OR MULTIPLE DWELLINGS;
 AND

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06805-01-7
              

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   2. THE ALTERATION OR CONVERSION CAUSES A SERIOUS  PHYSICAL  INJURY  TO
 ANOTHER PERSON.
   ILLEGAL CONVERSION OR ALTERATION OF REAL PROPERTY IS A CLASS C FELONY.
   § 2. Subdivision 13.1 of section 28-201.2.1 of the administrative code
 of  the city of New York, as added by local law number 17 of the city of
 New York for the year 2010, is amended to read as follows:
   [13.1 The minimum civil penalty that shall be imposed for a  violation
 of  section  28-408.1  or  section 28-410.1 of this code and the minimum
 fine that shall be imposed for a violation of such sections shall be two
 thousand five hundred dollars for the first violation and five  thousand
 dollars for each subsequent violation.]
   §  3.  Section  28-202.1 of the administrative code of the city of New
 York is amended by adding two new exceptions 4 and 5 to read as follows:
   4. THE MINIMUM CIVIL PENALTY FOR A VIOLATION OF  SECTION  28-408.1  OR
 SECTION  28-410.1 SHALL BE TWO THOUSAND FIVE HUNDRED DOLLARS FOR A FIRST
 VIOLATION AND FIVE THOUSAND DOLLARS FOR A SECOND VIOLATION, IN  ADDITION
 TO  ANY SEPARATE DAILY PENALTY IMPOSED PURSUANT TO SUBDIVISION 1 OF THIS
 SECTION.
   5. THE MINIMUM CIVIL PENALTY FOR A VIOLATION OF  SECTION  28-210.1  IN
 ANY  BUILDING INVOLVING THE ILLEGAL CONVERSION, MAINTENANCE OR OCCUPANCY
 OF THREE OR MORE DWELLING UNITS  THAN  ARE  LEGALLY  AUTHORIZED  BY  THE
 CERTIFICATE  OF  OCCUPANCY OR IF NO CERTIFICATE OF OCCUPANCY IS REQUIRED
 AS EVIDENCED BY OFFICIAL RECORDS SHALL BE FIFTEEN THOUSAND  DOLLARS  FOR
 EACH  DWELLING  UNIT  BEYOND  THE NUMBER THAT ARE LEGALLY AUTHORIZED. IT
 SHALL BE AN AFFIRMATIVE DEFENSE FOR THE OWNER OF SUCH BUILDING THAT: (I)
 SUCH BUILDING IS A MULTIPLE DWELLING WHICH LAWFULLY  HAS  FIVE  OR  MORE
 UNITS;  (II)  SUCH OWNER REASONABLY DID NOT KNOW OF SUCH ILLEGAL CONVER-
 SION,  MAINTENANCE  OR  OCCUPANCY;  AND  (III)  UPON  RECEIPT  OF   SUCH
 VIOLATION,  SUCH  OWNER  ATTEMPTED  TO  ADDRESS SUCH ILLEGAL CONVERSION,
 MAINTENANCE OR OCCUPANCY BY: (A) NOTIFYING THE OCCUPANTS OF EACH  DWELL-
 ING  UNIT  SUBJECT  TO SUCH ILLEGAL CONVERSION, MAINTENANCE OR OCCUPANCY
 THAT SUCH DWELLING UNIT HAS BEEN CONVERTED, MAINTAINED  OR  OCCUPIED  IN
 VIOLATION  OF  THIS  CODE AND THAT SUCH OCCUPANT MAY BE SUBJECT TO LEGAL
 PROCEEDINGS WHICH COULD RESULT IN SUCH  OCCUPANT'S  EVICTION  FROM  SUCH
 DWELLING UNIT; OR (B) COMMENCING SUCH LEGAL PROCEEDINGS.
   §  4.  Section  28-204.6 of the administrative code of the city of New
 York, as added by local law number 33 of the city of New  York  for  the
 year 2007, is amended to read as follows:
   §28-204.6  Tax  lien. Enforcement of environmental control board judg-
 ments against owners for certain building code violations. Notwithstand-
 ing any provision of law to the contrary, an environmental control board
 judgment against an owner for (I) a building code violation with respect
 to a private dwelling, a wooden-framed single  room  occupancy  multiple
 dwelling,  or a dwelling with a legal occupancy of three or fewer dwell-
 ing units OR (II) A VIOLATION OF SECTION 28-210.1 INVOLVING THE  ILLEGAL
 CONVERSION,  MAINTENANCE  OR  OCCUPANCY  OF THREE OR MORE DWELLING UNITS
 THAN ARE LEGALLY AUTHORIZED BY THE CERTIFICATE OF  OCCUPANCY  OR  IF  NO
 CERTIFICATE  OF  OCCUPANCY IS REQUIRED AS EVIDENCED BY OFFICIAL RECORDS,
 shall constitute a tax lien on the property named in the violation  with
 respect  to  which  such judgment was rendered, as hereinafter provided.
 Such liens shall be entered and enforced as  provided  in  this  section
 [28-204.6].
   §  5. Section 28-207.4.1 of the administrative code of the city of New
 York, as added by local law number 33 of the city of New  York  for  the
 year 2007, is amended to read as follows:

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   §  28-207.4.1  Basis for vacate. Conditions for which the commissioner
 may issue a vacate order shall include but shall not be limited  to  the
 following  conditions  that  create  a hazard to life, public safety, or
 property:
   1. Danger of structural failure;
   2. Danger of facade failure;
   3. Inadequate fire protection, detection, or suppression;
   4. Inadequate egress; [or]
   5.  Improper  storage of hazardous materials, combustible or toxic[.];
 OR
   6. A VIOLATION OF SECTION 28-210.1 WHICH INVOLVES THE ILLEGAL  CONVER-
 SION,  MAINTENANCE OR OCCUPANCY OF THREE OR MORE DWELLING UNITS THAN ARE
 LEGALLY AUTHORIZED BY  THE  CERTIFICATE  OF  OCCUPANCY  IS  REQUIRED  AS
 EVIDENCED BY OFFICIAL RECORDS.
   §  6.  The  administrative  code of the city of New York is amended by
 adding a new section 28-210.4 to read as follows:
   § 28-210.4 INSPECTION;  FAILURE  TO  GAIN  ACCESS  TO  PREMISES.  UPON
 RECEIVING  A  COMPLAINT  OF  A  CONDITION RELATING TO A BUILDING OR PART
 THEREOF THAT WOULD, IF OBSERVED BY THE COMMISSIONER,  BE  IDENTIFIED  BY
 THE  COMMISSIONER AS A VIOLATION OF SECTION 28-210.1 INVOLVING THE ILLE-
 GAL CONVERSION, MAINTENANCE OR OCCUPANCY OF THREE OR MORE DWELLING UNITS
 THAN ARE LEGALLY AUTHORIZED BY THE CERTIFICATE OF  OCCUPANCY  OR  IF  NO
 CERTIFICATE  OF  OCCUPANCY IS REQUIRED AS EVIDENCED BY OFFICIAL RECORDS,
 THE COMMISSIONER SHALL ATTEMPT TO ENTER AND  INSPECT  SUCH  BUILDING  OR
 PART  THEREOF,  THE COMMISSIONER SHALL NOTIFY THE OWNER OF SUCH BUILDING
 OR PART THEREOF. AFTER TWO UNSUCCESSFUL ATTEMPTS TO GAIN ACCESS TO  SUCH
 BUILDING  OR  PART THEREOF, BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED,
 THAT SUCH COMPLAINT HAS BEEN RECEIVED AND THAT  AN  INSPECTION  WILL  BE
 SCHEDULED  AT  A  DATE AND REASONABLE TIME DETERMINED BY THE DEPARTMENT;
 PROVIDED THAT SUCH DATE SHALL BE NO EARLIER THAN TEN DAYS  AND  NO  MORE
 THAN  THIRTY  DAYS  AFTER  SUCH  NOTICE  IS SENT. IF THE COMMISSIONER IS
 UNABLE TO GAIN ACCESS TO SUCH BUILDING OR PART THEREOF ON THE DATE SPEC-
 IFIED IN SUCH NOTICE, THE  COMMISSIONER  SHALL  IMMEDIATELY  PREPARE  AN
 AFFIDAVIT  DOCUMENTING  EACH UNSUCCESSFUL ATTEMPT TO GAIN ACCESS TO SUCH
 BUILDING OR PART THEREOF, SHALL SEEK TO OBTAIN  AN  AFFIDAVIT  FROM  THE
 COMPLAINANT  AND  SHALL TRANSMIT TO THE CORPORATION COUNSEL SUCH AFFIDA-
 VITS TOGETHER WITH ANY ADDITIONAL DOCUMENTS THE COMMISSIONER DEEMS RELE-
 VANT AND A REQUEST THAT SUCH COUNSEL SEEK  AN  ORDER  FROM  A  COURT  OF
 COMPETENT  JURISDICTION DIRECTING THAT APPROPRIATE ACCESS TO SUCH BUILD-
 ING OR PART THEREOF BE PROVIDED TO THE COMMISSIONER; PROVIDED  THAT,  IN
 PREPARING  SUCH  REQUEST,  PRIORITY  MAY BE GIVEN BY THE COMMISSIONER TO
 REQUESTS BASED ON THE DEGREE OF HAZARD TO SAFETY OR  PROPERTY  THAT  THE
 COMMISSIONER BELIEVES PRESENT. SUCH COUNSEL SHALL PROMPTLY CONSIDER SUCH
 REQUEST,  AND  WHERE  SUCH  COUNSEL DETERMINES THAT THERE IS APPROPRIATE
 BASIS TO OBTAIN SUCH AN ORDER, SHALL SEEK SUCH AN ORDER. THE COMMISSION-
 ER SHALL PROMPTLY EXECUTE ANY SUCH ORDER IN ACCORDANCE WITH ITS TERMS.
   § 7. Section 11-319 of the administrative code of the city of New York
 is amended by adding a new subdivision a-6 to read as follows:
   A-6. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER  TO  THE  CONTRARY,
 BEGINNING ON SEPTEMBER FIRST, TWO THOUSAND SIXTEEN, A LIEN THAT INCLUDES
 CIVIL  PENALTIES  FOR  A VIOLATION OF SECTION 28-201.1 OF THE CODE WHERE
 SUCH CIVIL PENALTIES ACCRUED  ON  OR  AFTER  JULY  FIRST,  TWO  THOUSAND
 SIXTEEN,  AND  BECAME A LIEN PURSUANT TO SECTION 28-204.6.6 OF THE CODE,
 MAY BE SOLD BY THE CITY PURSUANT  TO  THIS  CHAPTER,  WHERE  SUCH  CIVIL
 PENALTIES  COMPONENT  OF SUCH LIEN, AS OF THE DATE OF THE FIRST PUBLICA-
 TION, PURSUANT TO SUBDIVISION A OF SECTION 11-320 OF  THIS  CHAPTER,  OF

 A. 5187                             4
 
 THE  NOTICE  OF  SALE (I) SHALL HAVE REMAINED UNPAID IN WHOLE OR IN PART
 FOR ONE YEAR OR MORE, AND (II) EQUALS OR EXCEEDS THE SUM OF ONE THOUSAND
 DOLLARS. AFTER SUCH SALE, ANY SUCH CIVIL  PENALTIES  COMPONENT  OF  SUCH
 LIEN MAY BE TRANSFERRED IN THE MANNER PROVIDED BY THIS CHAPTER.
   § 8. This act shall take effect on the one hundred twentieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly,  the  addition,  amendment and/or repeal of any rules or regulations
 necessary for the implementation of the foregoing sections of  this  act
 on  its  effective  date  are  authorized  and  directed  to be made and
 completed on or before such effective date.