NY State Senate Bill 2017-S9175

Archive: Last Bill Status - In Senate Committee Rules 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
Oct 10, 2018	referred to rules

2017-S9175 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-516, 26-405 & 26-504.2, add §26-504.4, NYC Ad Cd; amd §12, add §5-b, Emerg Ten Prot Act of 1974; amd §§5 & 11, Emerg Hous Rent Cont L; amd §213-a, CPLR
Versions Introduced in 2019-2020 Legislative Session:: S280

2017-S9175 (ACTIVE) - Summary

Relates to the statute of limitations on rent overcharges; increases from four years to six years; requires records to be kept for six years; requires units to be re-regulated where they have been deregulated due to overcharges.

2017-S9175 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S9175

SPONSOR: BENJAMIN
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen seventy-four, the emergency
housing rent control law and the civil practice law and rules, in
relation to the statute of limitations on rent overcharges for regulated
units; in relation to requiring owners to keep rent records for six
years; and in relation to deregulated units as a result of overcharges

 
PURPOSE:

This bill increases the statute of limitations and lookback window for
rent overcharges in rent regulated units from four years to six years.
The bill allows that owners or landlords can be penalized for rent over-
charges even when fraud or illegality is not found. Additionally, a
certificate of eviction can be revoked if the certificate was granted as
a result of rent overcharges, regardless of whether there was fraud or
illegality. This bill returns units deregulated as a result of rent
overcharges to rent stabilization and authorizes penalties for rent

overcharges.

Penalties for rent such overcharges remain the same as before, but the
ability to levy them is broadened. In the case of willful overcharge,
the landlord shall pay the tenant three times the overcharge. If the
overcharge is not found to be willful, the penalty due the tenant will
be the amount of the overcharge plus interest. If the action is
commenced by the state, the tenant will be due one-third of such recov-
ered monies.

In the event a unit is deregulated as a result of overcharges, the unit
will be returned to rent stabilization within six months. If the owner
or landlord fails to register the unit as rent stabilized, DHCR will
impose a penalty of the amount of the overcharge plus interest.  For
each year the owner/ landlord fails to register the unit, DHCR will
impose an penalty of at least $2000 but not more than $10000

 
SUMMARY OF PROVISIONS:

§ 1 amends subdivisions a and g of section 26-516 of the administrative
code of the city of New York, subdivision a as amended by chapter 116 of
the laws of 1997 to extend the period for which rents can be examined
for overcharges from the period of four years to a period of six years
prior to filing of a complaint by a tenant.

§ 2 amends subdivision b and subparagraph (g) of paragraph 1 of subdivi-
sion g of section 26-405 of the administrative code of the city of New
York, subparagraph (g) of paragraph 1 of subdivision g as amended by
section 31 of part A of chapter 20 of the laws of 2015 to extend the
cause for finding a penalty for rent overcharges to include cases where
no illegality or fraud is proven. In subparagraph (g), a typographical
error in the statute is corrected.

§ 3 adds a new subdivision c to section 26-504.2 of the administrative
code of the city of New York extends the period of examination for rent
overcharges to be consistent with the provisions in § 1 of this act.

§ 4 adds a new section 26-504.4 to the administrative code of the city
of New York. This new section provides that in the event a rental unit
had been moved out of regulation by having a rent overcharge, that unit
will return to regulated status and sets penalties for failure to
comply.

§ 5 amends 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 403 of
the laws of 1983, the opening paragraph and clause (i) of subparagraph
(b) as amended by chapter 116 of the laws of 1997 to the effect that it
increases the period for examination for a rental overcharge to six
years from four or two years, dependent upon the circumstances.

§ 6 amends paragraph 8 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 403 of
the laws of 1983 increases the period that landlords must produce rental
records from four to six years.

§ 7 corrects a typographical error in subdivision c 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 added by chapter 102
of the laws of 1984.

§ 8 adds a new section 5-b to section 4 of chapter 576 of the laws of
1974, constituting the emergency tenant protection act of nineteen
seventy-four that provides that in the event a rental unit had been
moved out of regulation by having a rent overcharge, that unit will
return to regulated status and sets penalties for failure to comply.

§ 9 amends subdivision 3 of section 5 of chapter 274 of the laws of
1946, constituting the emergency housing rent control law, as amended by
chapter 337 of the laws of 1961 to the effect that The Division of Hous-
ing and Community Renewal can revoke an order of eviction even in cases
where there is no finding of fraud or illegality on the part of the
landlord.

§ 10 amends subdivision 5 of section 11 of chapter 274 of the laws of
1946, constituting the emergency housing rent control law, as amended by
chapter 706 of the laws of 1966 to allow a tenant or the Division of
Housing and Community Renewal to file an action for rent overcharges for
a period of up to six years after such a rent overcharge.

§ 11 amends section 213-a of the civil practice law and rules, as
amended by chapter 116 of the laws of 1997 to increase the period for
the commencement of an action in the case of a rent overcharge from a
period of four years to a period of six years after the first over-
charge.

§ 12 sets the enactment date of this act and provisional expiration
dates consistent with other expiration dates of housing and rent control
laws.

 
EXISTING LAW:

Current law provides the authority for a tenant in a rent regulated unit
to look back four years for rent overcharge claims.  In the case where
rent overcharges are determined to be the result of fraud, and in some
cases other illegality, a penalty can be assessed upon the landlord.

 
JUSTIFICATION:

This bill chiefly provides tenants in cases of rental overcharges with
two benefits.

The first is to extend the lookback window for rent overcharges from
four to six years, consistent with the statute of limitation on other
contract actions.

The second is to extend the grounds for imposing a penalty for rent
overcharges, even where there is no fraud or illegality found.  Extend-
ing the lookback window for rent overcharges will allow DHCR to discover
more rent overcharges dating back further in the units rent history, and
to levy penalties based on a longer lookback window.  DHCR will be able
to correct the maximum legal rent resulting from overcharges, regardless
of whether the overcharge is found to be fraudulent or illegal.

This bill also returns units to the rent regulation system if they were
deregulated because of rent overcharges.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

New Bill.

 
LOCAL FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
One hundred and eighty days after passage. Expires in the event of the
expiration of other rent control laws.

2017-S9175 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9175
 
                             I N  S E N A T E
 
                             October 10, 2018
                                ___________
 
 Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the administrative code of the city  of  New  York,  the
   emergency tenant protection act of nineteen seventy-four, the emergen-
   cy  housing  rent control law and the civil practice law and rules, in
   relation to the statute of limitations on rent overcharges  for  regu-
   lated  units; in relation to requiring owners to keep rent records for
   six years; and in relation to deregulated units as a result  of  over-
   charges
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions a and g of section 26-516 of  the  administra-
 tive  code  of the city of New York, subdivision a as amended by chapter
 116 of the laws of 1997, are amended to read as follows:
   a. 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 times  the  amount  of
 such  overcharge.  [In  no  event  shall such] EXCEPT AS PROVIDED FOR IN
 SECTION 26-504.4 OF THIS  CHAPTER,  treble  damage  [penalty]  PENALTIES
 SHALL  NOT  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 over-
 charge  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] SIX 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16570-02-8

 S. 9175                             2
 
 adjustments. Where the amount of rent  set  forth  in  the  annual  rent
 registration  statement  filed [four] SIX years prior to the most recent
 registration statement is not challenged within [four] SIX 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] SIX years prior to the date  of  the  initial
 registration  of  the housing accommodation (or, if the housing accommo-
 dation was subject to this chapter for less than [four] SIX  years,  the
 initial  legal  regulated  rent) plus in each case, any lawful increases
 and adjustments. Where the rent charged on the  date  [four]  SIX  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 rent charged on the date [four] SIX years prior to the  date
 of  initial  registration  of the housing accommodation cannot be estab-
 lished, such rent shall be established by  the  division  provided  that
 where  a  rent  is  established  based  on  rentals determined under the
 provisions of the local emergency housing rent  control  act  such  rent
 must be adjusted to account for no less than the minimum increases which
 would  be  permitted if the housing accommodation were covered under the
 provisions of this chapter. Where the amount of rent set  forth  in  the
 annual  rent  registration statement filed [four] SIX years prior to the
 most recent registration statement is not challenged within  [four]  SIX
 years  of  its filing, neither such rent nor service of any registration
 shall be subject to challenge at any time thereafter.
   (1) The order of the state division of housing and  community  renewal
 shall  apportion  the  owner's  liability  between  or among two or more
 tenants found to have  been  overcharged  by  such  owner  during  their
 particular tenancy of a unit.
   (2) Except as provided under clauses (i) and (ii) of this paragraph, a
 complaint  under this subdivision shall be filed with the state division
 of housing and community renewal within [four] SIX years  of  the  first
 overcharge alleged and no determination of an overcharge and no award or
 calculation of an award of the amount of an overcharge may be based upon
 an  overcharge  having  occurred  more  than [four] SIX years before the
 complaint is filed. (i) No penalty of three times the overcharge may  be
 based  upon  an  overcharge  having  occurred  more than [two] SIX years
 before the complaint is filed or upon an overcharge which occurred prior
 to April first, nineteen hundred eighty-four. (ii) Any  complaint  based
 upon  overcharges  occurring  prior to the date of filing of the initial
 rent registration as provided in section 26-517 of this chapter shall be
 filed within ninety days of the mailing of notice to the tenant of  such
 registration.    This paragraph shall preclude examination of the rental
 history of the housing accommodation prior to the  [four-year]  SIX-YEAR
 period preceding the filing of a complaint pursuant to this subdivision.
   (3)  Any affected tenant shall be notified of and given an opportunity
 to join in any complaint filed by an officer or employee  of  the  state
 division of housing and community renewal.
   (4)  An owner found to have overcharged may be assessed the reasonable
 costs and attorney's fees of the proceeding and interest from  the  date
 of the overcharge at the rate of interest payable on a judgment pursuant
 to section five thousand four of the civil practice law and rules.
   (5)  The  order of the state division of housing and community renewal
 awarding penalties may, upon the expiration of the period in  which  the
 owner  may  institute  a proceeding pursuant to article seventy-eight of

 S. 9175                             3
 
 the civil practice law and rules, be filed and enforced by a  tenant  in
 the same manner as a judgment or not in excess of twenty percent thereof
 per month may be offset against any rent thereafter due the owner.
   g.  Any owner who has duly registered a housing accommodation pursuant
 to section 26-517 of this chapter shall not be required to  maintain  or
 produce  any  records relating to rentals of such accommodation for more
 than [four] SIX years prior to the most recent  registration  or  annual
 statement for such accommodation.
   §  2. Subdivision b and subparagraph (g) of paragraph 1 of subdivision
 g of section 26-405 of the administrative code of the city of New  York,
 subparagraph  (g)  of paragraph 1 of subdivision g as amended by section
 31 of part A of chapter 20 of the laws of 2015, are amended to  read  as
 follows:
   b.  Such  agency,  to  effectuate the purposes of this chapter, and in
 accordance with the standards set forth in paragraph two of  subdivision
 c  of this section, may set aside and correct any maximum rent resulting
 from illegality, irregularity in vital  matters  [or],  fraud,  OR  RENT
 OVERCHARGES  REGARDLESS OF WHETHER THERE WAS FRAUD OR ILLEGALITY, occur-
 ring prior to or after May first, nineteen hundred sixty-two.
   (g) There has been since July first, nineteen hundred seventy, a major
 capital improvement required for the operation, preservation or  mainte-
 nance  of  the  structure. An adjustment under this subparagraph (g) for
 any order of the commissioner issued after the  effective  date  of  the
 rent  act  of 2015 shall be in an amount sufficient to amortize the cost
 of the improvements pursuant to this subparagraph (g) over an eight-year
 period for buildings with thirty-five or fewer  units  or  a  nine  year
 period for buildings with more than [thiry-five] THIRTY-FIVE units, or
   §  3.  Section  26-504.2 of the administrative code of the city of New
 York is amended by adding a new subdivision c to read as follows:
   C. NOTWITHSTANDING SECTION 26-516 OF  THIS  CHAPTER  AND  SECTION  TWO
 HUNDRED  THIRTEEN-A  OF  THE  CIVIL  PRACTICE LAW AND RULES, THE PERIODS
 PROVIDED FOR THEREIN FOR EXAMINATION OF THE RENTAL HISTORY OF THE ACCOM-
 MODATION FOR THE DETERMINATION OF AN OVERCHARGE AND WHETHER THE ACCOMMO-
 DATION IS SUBJECT TO THIS LAW ARE EXTENDED BY THE  PERIOD  DURING  WHICH
 THE OWNER IS NOT IN COMPLIANCE WITH THE REQUIREMENTS OF SUBDIVISION B OF
 THIS SECTION.
   §  4.  The  administrative  code of the city of New York is amended by
 adding a new section 26-504.4 to read as follows:
   § 26-504.4 DEREGULATION. NOTWITHSTANDING ANY PROVISION OF LAW  TO  THE
 CONTRARY,  WHERE  A  UNIT IS DEREGULATED AS A RESULT OF OVERCHARGES, THE
 UNIT SHALL BE  RETURNED  TO  RENT  STABILIZATION  UNDER  THE  APPLICABLE
 SECTIONS  OF  LAW,  WITHIN  SIX MONTHS. WHERE AN OWNER FAILS TO REGISTER
 SUCH UNIT AS RENT STABILIZED PURSUANT TO SECTION 26-517 OF THIS CHAPTER,
 THE STATE DIVISION OF HOUSING  AND  COMMUNITY  RENEWAL  SHALL  IMPOSE  A
 PENALTY  EQUAL  TO THE AMOUNT OF SUCH OVERCHARGE, PLUS ACCRUED INTEREST.
 FOR EACH YEAR AN OWNER FAILS TO REGISTER SUCH UNIT PURSUANT  TO  SECTION
 26-517 OF THIS CHAPTER, PENALTIES IMPOSED BY THE STATE DIVISION OF HOUS-
 ING  AND  COMMUNITY  RENEWAL  SHALL BE AT LEAST TWO THOUSAND DOLLARS AND
 SHALL NOT EXCEED TEN THOUSAND DOLLARS.
   § 5.  Paragraph 1 of subdivision a of section 12 of section 4 of chap-
 ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
 protection  act  of  nineteen seventy-four, as amended by chapter 403 of
 the laws of 1983, the opening paragraph and clause (i)  of  subparagraph
 (b) as amended by chapter 116 of the laws of 1997, is amended to read as
 follows:

 S. 9175                             4
 
   (1)  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
 opportunity  to be heard, to have collected an overcharge above the rent
 authorized for a housing accommodation subject  to  this  act  shall  be
 liable  to  the  tenant for a penalty equal to three times the amount of
 such overcharge.  [In no event shall such] EXCEPT  AS  PROVIDED  FOR  IN
 SECTION  FIVE-B OF THIS SECTION, treble damage [penalty] PENALTIES SHALL
 NOT 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  division  of  housing  and  community renewal shall establish 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 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]  SIX  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]  SIX  years
 prior to the most recent registration statement is not challenged within
 [four]  SIX  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]  SIX  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] SIX years, the initial legal regulated
 rent) plus in each case, any lawful increases and adjustments. Where the
 rent charged on the date [four] SIX 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] SIX years
 prior to the most recent registration statement is not challenged within
 [four] SIX years of its filing, neither such rent  nor  service  of  any
 registration shall be subject to challenge at any time thereafter.
   (a)  The  order of the state division of housing and community renewal
 shall apportion the owner's liability  between  or  among  two  or  more
 tenants  found  to  have  been  overcharged  by  such owner during their
 particular tenancy of a unit.
   (b) (i) Except as provided  under  clauses  (ii)  and  (iii)  of  this
 subparagraph, a complaint under this subdivision shall be filed with the
 state  division of housing and community renewal within [four] SIX years
 of the first overcharge alleged and no determination  of  an  overcharge
 and  no  award or calculation of an award of the amount of an overcharge
 may be based upon an overcharge having occurred  more  than  [four]  SIX
 years before the complaint is filed. This paragraph shall preclude exam-
 ination  of the rental history of the housing accommodation prior to the

 S. 9175                             5
 
 [four-year] SIX-YEAR period preceding the filing of a complaint pursuant
 to this subdivision.
   (ii)  No  penalty  of  three times the overcharge may be based upon an
 overcharge  having  occurred  more  than  [two]  SIX  years  before  the
 complaint  is  filed or upon an overcharge which occurred prior to April
 first, nineteen hundred eighty-four.
   (iii) Any complaint based upon overcharges occurring prior to the date
 of filing of the initial rent registration as provided in subdivision  b
 of section twelve-a of this act shall be filed within ninety days of the
 mailing of notice to the tenant of such registration.
   (c)  Any affected tenant shall be notified of and given an opportunity
 to join in any complaint filed by an officer or employee  of  the  state
 division of housing and community renewal.
   (d)  An  owner  found  to  have  overcharged  shall,  in all cases, be
 assessed the reasonable costs and attorney's fees of the proceeding, and
 interest from the date of the overcharge at the rate of interest payable
 on a judgment pursuant to section five thousand four of the civil  prac-
 tice law and rules.
   (e)  The  order of the state division of housing and community renewal
 awarding penalties may, upon the expiration of the period in  which  the
 owner  may  institute  a proceeding pursuant to article seventy-eight of
 the civil practice law and rules, be filed and enforced by a  tenant  in
 the  same  manner as a judgment or, in the alternative, not in excess of
 twenty percent thereof per month may be offset against any  rent  there-
 after due the owner.
   (f)  Unless  a  tenant shall have filed a complaint of overcharge with
 the division which complaint has not been withdrawn,  nothing  contained
 in this section shall be deemed to prevent a tenant or tenants, claiming
 to  have  been  overcharged,  from commencing an action or interposing a
 counterclaim in a court of competent jurisdiction for damages  equal  to
 the  overcharge  and the penalty provided for in this section, including
 interest from the date of the overcharge at the rate of interest payable
 on a judgment pursuant to section five thousand four of the civil  prac-
 tice law and rules, plus the statutory costs and allowable disbursements
 in  connection  with  the  proceeding.  Such action must be commenced or
 counterclaim interposed within [four] SIX  years  of  the  date  of  the
 alleged  overcharge  but  no  recovery  of three times the amount of the
 overcharge may be awarded with  respect  to  any  overcharge  which  had
 occurred  more  than  [two]  SIX years before the action is commenced or
 counterclaim is interposed.
   § 6. Paragraph 8 of subdivision a of section 12 of section 4 of  chap-
 ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
 protection act of nineteen seventy-four, as amended by  chapter  403  of
 the laws of 1983, is amended to read as follows:
   (8) Any owner who has duly registered a housing accommodation pursuant
 to  section  twelve-a  of  this act shall not be required to maintain or
 produce any records relating to rentals of such accommodation more  than
 [four]  SIX years prior to the most recent registration or annual state-
 ment for such accommodation.
   § 7. Subdivision c 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, as added by chapter 102  of  the  laws  of  1984,  is
 amended to read as follows:
   c.  The  state division of housing and community renewal may, by regu-
 lation, provide for administrative review of  all  orders  and  determi-
 nations  issued  by  it  pursuant to this act. Any such regulation shall

 S. 9175                             6
 
 provide that if a petition for such  review  is  not  determined  within
 ninety  days after it is filed, it shall be deemed to be denied.  Howev-
 er, the division may grant one extension not to exceed thirty days  with
 the consent of the party filing such petition; any further extension may
 only  be  granted  with  the  consent of all parties to the petition. No
 proceeding may be brought pursuant to article seventy-eight of the civil
 practice law and rules to [challange] CHALLENGE any  order  or  determi-
 nation which is subject to such administrative review unless such review
 has  been sought and either (1) a determination thereon has been made or
 (2) the ninety-day period provided for determination of the petition for
 review (or any extension thereof) has expired.
   § 8. 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. DEREGULATION. NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO  THE
 CONTRARY,  WHERE  A  UNIT IS DEREGULATED AS A RESULT OF OVERCHARGES, THE
 UNIT SHALL BE RE-REGULATED PURSUANT TO THIS CHAPTER WITHIN  SIX  MONTHS.
 WHERE  AN  OWNER FAILS TO REGISTER SUCH UNIT AS RENT STABILIZED PURSUANT
 TO SECTION TWELVE-A OF THIS SECTION, THE STATE DIVISION OF  HOUSING  AND
 COMMUNITY  RENEWAL  SHALL  IMPOSE  A PENALTY EQUAL TO THE AMOUNT OF SUCH
 OVERCHARGE, PLUS ACCRUED INTEREST. FOR  EACH  YEAR  AN  OWNER  FAILS  TO
 REGISTER  SUCH UNIT PURSUANT TO SECTION TWELVE-A OF THIS SECTION, PENAL-
 TIES IMPOSED BY THE STATE DIVISION  OF  HOUSING  AND  COMMUNITY  RENEWAL
 SHALL BE AT LEAST TWO THOUSAND DOLLARS AND SHALL NOT EXCEED TEN THOUSAND
 DOLLARS.
   §  9.  Subdivision  3 of section 5 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:
   3. The commission may from time to time to effectuate the purposes  of
 this  act adopt, promulgate, amend or rescind such rules, regulations or
 orders as it may deem necessary or proper for the control of  evictions.
 It  may  require  that  an  order  granting a certificate of eviction be
 obtained from it prior to the institution of any  action  or  proceeding
 for the recovery of possession of any housing accommodation subject to a
 maximum  rent  under  this act upon the grounds specified in subdivision
 two of this section or where it finds  that  the  requested  removal  or
 eviction is not inconsistent with the purposes of this act and would not
 be  likely  to result in the circumvention or evasion thereof; provided,
 however, that no such order shall be required in any action or  proceed-
 ing  brought  pursuant  to  the  provisions  of  subdivision one of this
 section.
   The commission on its own initiative or on application of a tenant may
 revoke or cancel an order granting such certificate of eviction  at  any
 time  prior  to  the  execution  of a warrant in a summary proceeding to
 recover possession of real property by a court whenever it finds that:
   (a) the certificate of eviction was obtained by fraud  or  illegality;
 [or]
   (b)  the  landlord's  intentions or circumstances have so changed that
 the premises, possession of which is sought, will not be  used  for  the
 purpose specified in the certificate[.]; OR
   (C)  THE  CERTIFICATE  OF  EVICTION  WAS OBTAINED AS A RESULT OF OVER-
 CHARGES, REGARDLESS OF WHETHER THERE WAS FRAUD OR ILLEGALITY.
   The commencement of a proceeding by the commission to revoke or cancel
 an order granting a certificate of eviction shall stay such order  until
 the  final  determination  of  the  proceeding regardless of whether the
 waiting period in the order  has  already  expired.  In  the  event  the

 S. 9175                             7
 
 commission  cancels or revokes such an order, the court having jurisdic-
 tion of any summary proceeding instituted in such case shall take appro-
 priate action to dismiss the application for removal of the tenant  from
 the  real  property  and  to vacate and annul any final order or warrant
 granted or issued by the court in the matter.
   § 10. Subdivision 5 of section 11 of chapter 274 of the laws of  1946,
 constituting the emergency housing rent control law, as amended by chap-
 ter 706 of the laws of 1966, is amended to read as follows:
   5.  If  any  landlord who receives rent from a tenant violates a regu-
 lation or order prescribing the maximum rent with respect to the housing
 accommodations for which such rent is received  from  such  tenant,  the
 tenant paying such rent may, within [two] SIX years from the date of the
 occurrence  of  the  violation, except as hereinafter provided, bring an
 action against the landlord on account of the overcharge as  hereinafter
 defined.  In  such  action,  the landlord shall be liable for reasonable
 attorney's fees and costs as determined by the court, plus whichever  of
 the  following  sums is the greater: (a) Such amount not more than three
 times the amount of the overcharge, or the overcharges, upon  which  the
 action  is based as the court in its discretion may determine, or (b) an
 amount not less than twenty-five dollars nor more than fifty dollars, as
 the court in its discretion may determine; provided, however, that  such
 amount  shall  be the amount of the overcharge or overcharges or twenty-
 five dollars, whichever is greater, if the  defendant  proves  that  the
 violation of the regulation or order in question was neither willful nor
 the result of failure to take practicable precautions against the occur-
 rence  of  the violation. As used in this section, the word "overcharge"
 shall mean the amount by which the consideration paid by a tenant  to  a
 landlord  exceeds  the  applicable  maximum  rent.  If  any landlord who
 receives rent from a tenant violates a regulation or  order  prescribing
 maximum  rent  with respect to the housing accommodations for which such
 rent is received from such tenant,  and  such  tenant  either  fails  to
 institute  an  action under this subdivision within thirty days from the
 date of the occurrence of the violation  or  is  not  entitled  for  any
 reason  to  bring  the action, the commission may institute an action on
 behalf of the state within such  [two-year]  SIX-YEAR  period.  If  such
 action is instituted by the commission, the tenant affected shall there-
 after  be  barred  from  bringing  an  action  for the same violation or
 violations. Any action under this subdivision by either  the  tenant  or
 the  commission,  as  the  case  may  be, may be brought in any court of
 competent jurisdiction.   Recovery, by  judgment  or  otherwise,  in  an
 action for damages under this subdivision shall be a bar to the recovery
 under this subdivision of any recovery, by judgment or otherwise, in any
 other action against the same landlord on account of the same overcharge
 or  overcharges  prior  to  the  institution of the action in which such
 recovery of damages was obtained. Where recovery by judgment  or  other-
 wise  is  obtained  in an action instituted by the commission under this
 subdivision, there shall be paid over to  the  tenant  from  the  moneys
 recovered,  one-third of such recovery, exclusive of costs and disburse-
 ment or the amount of the overcharge or overcharges,  whichever  is  the
 greater.
   § 11. Section 213-a of the civil practice law and rules, as amended by
 chapter 116 of the laws of 1997, is amended to read as follows:
   §  213-a. Actions to be commenced within [four] SIX years; residential
 rent overcharge. An action on a residential  rent  overcharge  shall  be
 commenced within [four] SIX years of the first overcharge alleged and no
 determination  of  an overcharge and no award or calculation of an award

 S. 9175                             8
 
 of the amount of any overcharge may be based upon an  overcharge  having
 occurred more than [four] SIX years before the action is commenced. This
 section  shall preclude examination of the rental history of the housing
 accommodation  prior  to  the  [four-year]  SIX-YEAR  period immediately
 preceding the commencement of the action.
   § 12. This act shall take effect on  the  one  hundred  eightieth  day
 after  it shall have become a law; provided that the amendments to chap-
 ter 4 of title 26 of the administrative code of the  city  of  New  York
 made  by  sections  one,  three and four 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; provided, howev-
 er, that the amendments to section 26-405 of the city rent and rehabili-
 tation law made by section two of this act shall remain  in  full  force
 and effect only as long as the public emergency requiring the regulation
 and control of residential rents and evictions continues, as provided in
 subdivision  3  of section 1 of the local emergency housing rent control
 act; provided, however, that the  amendments  to  the  emergency  tenant
 protection  act  of  nineteen  seventy-four  made by sections five, six,
 seven and eight 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; provided,  further,  that
 the  amendments  to  section 4 of the emergency housing rent control law
 made by sections nine and ten 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 S9175

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

2017-S9175 (ACTIVE) - Details

2017-S9175 (ACTIVE) - Summary

2017-S9175 (ACTIVE) - Sponsor Memo

2017-S9175 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9175

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Sponsored By

Brian Benjamin

Archive: Last Bill Status - In Senate Committee Rules Committee

2017-S9175 (ACTIVE) - Details

2017-S9175 (ACTIVE) - Summary

2017-S9175 (ACTIVE) - Sponsor Memo

2017-S9175 (ACTIVE) - Bill Text download pdf

Comments