S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    523
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Housing
 
 AN ACT to amend the emergency tenant protection act of  nineteen  seven-
   ty-four,  and  the  administrative  code  of  the city of New York, in
   relation to penalties for owners of property who fail to file a proper
   or timely rent registration statement

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  opening paragraph of paragraph 1 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 116 of the laws of 1997, is amended to read as follows:
   Subject to the conditions and limitations of this paragraph, any owner
 of housing accommodations in a city having a population of less than one
 million or a town or village as to which an emergency has been  declared
 pursuant  to  section  three,  who, upon complaint of a tenant or of the
 state division of housing and community renewal, is found by  the  state
 division  of  housing and community renewal, after a reasonable opportu-
 nity to be heard, to have collected an overcharge above the rent author-
 ized for a housing accommodation subject to this act shall be liable  to
 the  tenant for a penalty equal to [three] FIVE times the amount of such
 overcharge FOR A FIRST OFFENSE AND TEN TIMES THE AMOUNT  OF  SUCH  OVER-
 CHARGE  FOR  ANY  SUBSEQUENT  OVERCHARGES. In no event shall such treble
 damage penalty be assessed against an owner based solely on said owner's
 failure to file a proper or timely initial or annual  rent  registration
 statement.  If  the owner establishes by a preponderance of the evidence
 that the overcharge was neither willful nor attributable to  his  negli-
 gence,  the state division of housing and community renewal shall estab-
 lish the penalty as the amount of the overcharge plus  interest  at  the
 rate of interest payable on a judgment pursuant to section five thousand
 four  of  the  civil practice law and rules. (i) Except as to complaints
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01785-01-7

 A. 523                              2
 
 filed pursuant to clause (ii) of this  paragraph,  the  legal  regulated
 rent  for  purposes  of determining an overcharge, shall be deemed to be
 the rent indicated in the annual registration statement filed four years
 prior  to  the most recent registration statement, (or, if more recently
 filed, the initial registration statement) plus in each case any  subse-
 quent  lawful  increases  and  adjustments. Where the amount of rent set
 forth in the annual rent registration statement filed four  years  prior
 to  the most recent registration statement is not challenged within four
 years of its filing, neither such rent nor service of  any  registration
 shall  be  subject  to  challenge  at  any  time  thereafter. (ii) As to
 complaints filed within ninety days of the  initial  registration  of  a
 housing  accommodation,  the legal regulated rent for purposes of deter-
 mining an overcharge shall be deemed to be the rent charged on the  date
 four  years prior to the date of the initial registration of the housing
 accommodation (or, if the housing accommodation was subject to this  act
 for less than four years, the initial legal regulated rent) plus in each
 case,  any  lawful  increases and adjustments. Where the rent charged on
 the date four years prior to the date of the initial registration of the
 accommodation cannot be established, such rent shall be  established  by
 the  division.  Where  the  amount  of rent set forth in the annual rent
 registration statement filed four years prior to the most recent  regis-
 tration  statement  is  not  challenged within four years of its filing,
 neither such rent nor service of any registration shall  be  subject  to
 challenge at any time thereafter.
   §  2. The opening paragraph of subdivision  a of section 26-516 of the
 administrative code of the city of New York, as amended by  chapter  116
 of the laws of 1997, is amended to read as follows:
   Subject  to  the  conditions  and limitations of this subdivision, any
 owner of housing accommodations who, upon complaint of a tenant,  or  of
 the  state  division  of  housing and community renewal, is found by the
 state division of housing and  community  renewal,  after  a  reasonable
 opportunity  to be heard, to have collected an overcharge above the rent
 authorized for a housing accommodation subject to this chapter shall  be
 liable  to  the  tenant  for  a  penalty equal to [three] FIVE times the
 amount of such overcharge FOR A FIRST OFFENSE AND TEN TIMES  THE  AMOUNT
 OF  SUCH  OVERCHARGE  FOR  ANY SUBSEQUENT OVERCHARGES. In no event shall
 such treble damage penalty be assessed against an owner based solely  on
 said  owner's  failure to file a timely or proper initial or annual rent
 registration statement. If the owner establishes by a  preponderance  of
 the  evidence that the overcharge was not willful, the state division of
 housing and community renewal shall establish the penalty as the  amount
 of  the  overcharge  plus  interest.  (i)  Except as to complaints filed
 pursuant to clause (ii) of this paragraph, the legal regulated rent  for
 purposes  of  determining  an overcharge, shall be the rent indicated in
 the annual registration statement filed four years  prior  to  the  most
 recent  registration statement, (or, if more recently filed, the initial
 registration  statement)  plus  in  each  case  any  subsequent   lawful
 increases  and  adjustments.  Where  the amount of rent set forth in the
 annual rent registration statement filed four years prior  to  the  most
 recent registration statement is not challenged within four years of its
 filing,  neither  such  rent  nor  service  of any registration shall be
 subject to challenge at any time thereafter.    (ii)  As  to  complaints
 filed within ninety days of the initial registration of a housing accom-
 modation,  the  legal  regulated  rent  shall  be  deemed to be the rent
 charged on the date four years prior to the date of the  initial  regis-
 tration  of  the housing accommodation (or, if the housing accommodation

 A. 523                              3
 
 was subject to this chapter for less than four years, the initial  legal
 regulated rent) plus in each case, any lawful increases and adjustments.
 Where  the  rent charged on the date four years prior to the date of the
 initial  registration  of  the accommodation cannot be established, such
 rent shall be established by the division.
   § 3. This act shall take effect immediately; provided that
   a. the amendments to the opening paragraph of paragraph 1 of  subdivi-
 sion  a of section 12 of the emergency tenant protection act of nineteen
 seventy-four made by section one 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 567 of the laws of 1974; and
   b.  the  amendments  to section 26-516 of chapter 4 of title 26 of the
 administrative code of the city of New York made by section two of  this
 act  shall  expire  on  the  same date as such law expires and shall not
 affect the expiration of such law as provided under  section  26-520  of
 such law.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  523--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Housing -- recommitted to the  Committee  on  Housing  in
   accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN  ACT  to amend the emergency tenant protection act of nineteen seven-
   ty-four, and the administrative code of  the  city  of  New  York,  in
   relation to penalties for owners of property who fail to file a proper
   or timely rent registration statement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The opening paragraph of paragraph 1 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 116 of the laws of 1997, is amended to read as follows:
   Subject to the conditions and limitations of this paragraph, any owner
 of housing accommodations in a city having a population of less than one
 million  or a town or village as to which an emergency has been declared
 pursuant to section three, who, upon complaint of a  tenant  or  of  the
 state  division  of housing and community renewal, is found by the state
 division of housing and community renewal, after a  reasonable  opportu-
 nity to be heard, to have collected an overcharge above the rent author-
 ized  for a housing accommodation subject to this act shall be liable to
 the tenant for a penalty equal to [three] UP TO FIVE times the amount of
 such overcharge. In  no  event  shall  such  treble  damage  penalty  be
 assessed against an owner based solely on said owner's failure to file a
 proper  or  timely initial or annual rent registration statement. If the
 owner establishes by a preponderance of the evidence that the overcharge
 was neither willful nor attributable to his negligence, the state  divi-
 sion of housing and community renewal shall establish the penalty as the
 amount  of  the overcharge plus interest at the rate of interest payable
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01785-02-8

 A. 523--A                           2
 
 on a judgment pursuant to section five thousand four of the civil  prac-
 tice law and rules. (i) Except as to complaints filed pursuant to clause
 (ii)  of this paragraph, the legal regulated rent for purposes of deter-
 mining  an  overcharge,  shall be deemed to be the rent indicated in the
 annual registration statement filed four years prior to the most  recent
 registration  statement, (or, if more recently filed, the initial regis-
 tration statement) plus in each case any subsequent lawful increases and
 adjustments. Where the amount of rent  set  forth  in  the  annual  rent
 registration  statement filed four years prior to the most recent regis-
 tration statement is not challenged within four  years  of  its  filing,
 neither  such  rent  nor service of any registration shall be subject to
 challenge at any time thereafter. (ii) As  to  complaints  filed  within
 ninety  days of the initial registration of a housing accommodation, the
 legal regulated rent for purposes of determining an overcharge shall  be
 deemed  to  be the rent charged on the date four years prior to the date
 of the initial registration of the housing  accommodation  (or,  if  the
 housing  accommodation was subject to this act for less than four years,
 the initial  legal  regulated  rent)  plus  in  each  case,  any  lawful
 increases and adjustments. Where the rent charged on the date four years
 prior  to  the  date  of  the  initial registration of the accommodation
 cannot be established, such rent shall be established by  the  division.
 Where  the  amount  of  rent  set  forth in the annual rent registration
 statement filed four years prior to the most recent registration  state-
 ment  is  not  challenged  within four years of its filing, neither such
 rent nor service of any registration shall be subject  to  challenge  at
 any time thereafter.
   §  2. The opening paragraph of subdivision  a of section 26-516 of the
 administrative code of the city of New York, as amended by  chapter  116
 of the laws of 1997, is amended to read as follows:
   Subject  to  the  conditions  and limitations of this subdivision, any
 owner of housing accommodations who, upon complaint of a tenant,  or  of
 the  state  division  of  housing and community renewal, is found by the
 state division of housing and  community  renewal,  after  a  reasonable
 opportunity  to be heard, to have collected an overcharge above the rent
 authorized for a housing accommodation subject to this chapter shall  be
 liable to the tenant for a penalty equal to [three] UP TO FIVE times the
 amount  of such overcharge. In no event shall such treble damage penalty
 be assessed against an owner based solely on  said  owner's  failure  to
 file  a  timely or proper initial or annual rent registration statement.
 If the owner establishes by a preponderance of  the  evidence  that  the
 overcharge  was not willful, the state division of housing and community
 renewal shall establish the penalty as the amount of the overcharge plus
 interest. (i) Except as to complaints filed pursuant to clause  (ii)  of
 this  paragraph, the legal regulated rent for purposes of determining an
 overcharge, shall be the  rent  indicated  in  the  annual  registration
 statement  filed four years prior to the most recent registration state-
 ment, (or, if more recently filed, the initial  registration  statement)
 plus in each case any subsequent lawful increases and adjustments. Where
 the  amount  of rent set forth in the annual rent registration statement
 filed four years prior to the most recent registration statement is  not
 challenged  within  four  years  of  its  filing,  neither such rent nor
 service of any registration shall be subject to challenge  at  any  time
 thereafter.    (ii)  As  to  complaints  filed within ninety days of the
 initial registration of a housing  accommodation,  the  legal  regulated
 rent shall be deemed to be the rent charged on the date four years prior
 to  the  date  of  the initial registration of the housing accommodation

 A. 523--A                           3
 
 (or, if the housing accommodation was subject to this chapter  for  less
 than  four  years,  the initial legal regulated rent) plus in each case,
 any lawful increases and adjustments. Where the rent charged on the date
 four years prior to the date of the initial registration of the accommo-
 dation  cannot  be  established,  such  rent shall be established by the
 division.
   § 3. This act shall take effect immediately; provided that
   a. the amendments to the opening paragraph of paragraph 1 of  subdivi-
 sion  a of section 12 of the emergency tenant protection act of nineteen
 seventy-four made by section one 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 567 of the laws of 1974; and
   b.  the  amendments  to section 26-516 of chapter 4 of title 26 of the
 administrative code of the city of New York made by section two of  this
 act  shall  expire  on  the  same date as such law expires and shall not
 affect the expiration of such law as provided under  section  26-520  of
 such law.