The New York State Senate

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

                                   238

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2019
                               ___________

Introduced  by Sens. HOYLMAN, KRUEGER -- 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 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD00529-02-9

S. 238                              2

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 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

S. 238                              3

charged  on  the date four years prior to the date of the initial regis-
tration of the housing accommodation (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 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.