NY State Senate Bill 2017-S6376

Senate Bill S6376

2017-2018 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to housing, construction and community development
May 11, 2017	referred to housing, construction and community development

co-Sponsors

2017-S6376 (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
2015-2016: S2778

2017-S6376 (ACTIVE) - 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.

2017-S6376 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6376

 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-Stabilize d 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.

2017-S6376 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6376
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 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.

                                                            LBD10947-01-7

 S. 6376                             2
 
   § 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.
   § 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:
   § 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.
   § 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
   § 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:
   (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;

 S. 6376                             3
 
   (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.
   § 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
   § 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.
   § 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.
   § 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.
   §  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.
   §  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:

 S. 6376                             4
 
   (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;
   (c) 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
   (d) 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 S6376

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Sponsored By

Liz Krueger