NY State Senate Bill 2019-S6680

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 08, 2020	referred to housing, construction and community development
Sep 04, 2019	referred to rules

co-Sponsors

2019-S6680 (ACTIVE) - Details

See Assembly Version of this Bill:: A8646
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Add §10-c, Emerg Ten Prot Act of 1974
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3078, A6973
2023-2024: A2020

2019-S6680 (ACTIVE) - Summary

Regulates buyout agreements within rent regulated apartments between a landlord and current tenant, and provides penalties for harassment by a landlord.

2019-S6680 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6680

SPONSOR: SALAZAR
 
TITLE OF BILL:  An act to amend the emergency tenant protection act of
nineteen seventy-four, in relation to regulating buyouts within rent
regulated apartments

 
PURPOSE::  This legislation provides needed protection to rent-regu-
lated tenants from the common situation where tenants face harassment
and undue pressure from landlords to surrender or waive their rights to
occupancy pursuant to "buyout" agreements.

 
SUMMARY OF SPECIFIC PROVISIONS::

Section 1 adds a new section 10-c, titled "Regulated buyouts for rent
regulated apartments" to the emergency tenant protection act of 1974,
which, in paragraph (a) defines the terms used in this statute, most
importantly, "buyout agreement" is defined as an agreement wherein the
owner of a dwelling unit exchanges money or other valuable consideration
to induce any person lawfully entitled to occupancy of such unit to
surrender or waive any rights in relation to such occupancy that results

in the tenant vacating such unit."

Paragraph (b)requires that any proposed buyout agreement be in writing,
shall include details as to the nature and substance of the proposed
agreement, and shall inform the tenant of the tenant's right to reject
the proposed agreement and to consult with an attorney.

Paragraph c) provides that a proposed buyout offer shall be considered
harassment if the landlord provides false information, contacts the
tenant at their place of employment without permission, or continues to
contact the tenant within 180 days after the tenant as advised the land-
lord that they do not want to be contacted further regarding any poten-
tial buyout offers.

Paragraph (d) provides that tenants shall have a minimum of 90 days from
the date the proposed buyout was presented to the tenant to accept or
reject such agreement and prohibits the execution of any buyout agree-
ment during the 90 day period.

Paragraph (e) requires landlords to provide to the division of housing
and community renewal within 90 days after execution of a buyout agree-
ment information regarding the details of such agreement, including the
nature of the valuable consideration agreed to as part of the agreement.

Paragraph (f) requires the commissioner of the division to submit annual
reports to the legislature stating the number of buyout agreements and
the details of such agreements.

Paragraph (g) imposes a civil penalty of $500.00 on landlords who fail
to provide the required information to the division pursuant to para-
graph e and also imposes a penalty of $1,000.00 per violation on land-
lords who engage in harassment as defined in paragraph c, violate the 90
day time period established by paragraph d, or violate the minimum stan-
dards as to how a buyout shall be made pursuant to this act.

Section 2 provides the effective date.

 
JUSTIFICATION::
Rent regulated tenants have long faced harassment from landlords aiming
to create vacancies in order to increase the rent and profits.  While
the Housing Stability and Tenant Protection Act of 2019 provides signif-
icant new protections to tenants, there remains the risk that some land-
lords faced with new laws and requirements will revert to buyout efforts
to gain a financial advantage or to ameliorate the impact of the new
laws. For example, an article in The Real Deal, a real estate industry
publication, dated July 12, 2019, reports that a real estate industry
attorney advised a group of property owners at a presentation on the new
laws that, there would be a "return to buyouts" in light of the new law.
Georgia Kromrei, "How NYC landlords are trying to get around the new
rent law", The Real Deal, July 12 2019.

This bill is needed to ensure that tenants are not subjected to harass-
ment, to establish proper and fair procedures for buy out offer s, to
establish a reporting process so data regarding buy outs can be gathered
and analyzed, and to impose penalties on landlords who fail to follow
the proper procedures for buy out offers and agreements.

 
LEGISLATIVE HISTORY::

This is a new bill.

 
FISCAL IMPLICATIONS::

None to the State.

 
EFFECTIVE DATE::

This act shall take effect July 1, 2020.

2019-S6680 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6680
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             September 4, 2019
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the emergency tenant protection act of  nineteen  seven-
   ty-four,  in  relation  to  regulating  buyouts  within rent regulated
   apartments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. 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 10-c to read as follows:
   § 10-C. REGULATED  BUYOUTS  FOR  RENT  REGULATED  APARTMENTS.  A.  FOR
 PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (1) "BUYOUT AGREEMENT" SHALL MEAN AN AGREEMENT WHEREIN THE OWNER OF  A
 DWELLING  UNIT EXCHANGES MONEY OR OTHER VALUABLE CONSIDERATION TO INDUCE
 ANY PERSON LAWFULLY ENTITLED TO OCCUPANCY OF SUCH UNIT TO  SURRENDER  OR
 WAIVE  ANY  RIGHTS  IN  RELATION  TO  SUCH OCCUPANCY THAT RESULTS IN THE
 TENANT VACATING SUCH UNIT.
   (2) "COMMISSIONER" SHALL MEAN THE  COMMISSIONER  OF  THE  DIVISION  OF
 HOUSING AND COMMUNITY RENEWAL AND ANY SUCCESSOR THERETO.
   (3)  "DIVISION"  SHALL  MEAN  THE  DIVISION  OF  HOUSING AND COMMUNITY
 RENEWAL AND ANY SUCCESSOR THERETO.
   B. (1) IF A LANDLORD SHALL MAKE A BUYOUT OFFER TO A CURRENT TENANT  IN
 THE FORM OF A PROPOSED BUYOUT AGREEMENT, SUCH AGREEMENT SHALL BE MADE IN
 WRITING AND SHALL CONTAIN:
   (A) HIS OR HER NAME AND CONTACT INFORMATION;
   (B) THE DATE THE REQUEST WAS MADE IN WRITING;
   (C) THE AMOUNT OF MONEY BEING OFFERED TO THE CURRENT TENANT; AND
   (D) THE REASON FOR CONTACTING THE TENANT;
   (2)  THE  LANDLORD SHALL MAKE IT KNOWN TO A TENANT WITHIN ANY PROPOSED
 BUYOUT AGREEMENT THAT:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13520-01-9

 S. 6680                             2
 
   (A) THE TENANT MAY REJECT ANY OFFER AND MAY  CONTINUE  TO  OCCUPY  THE
 DWELLING UNIT; AND
   (B) THE TENANT MAY CONSULT WITH AN ATTORNEY REGARDING SUCH AGREEMENT.
   C.  A PROPOSED BUYOUT OFFER SHALL BE CONSIDERED HARASSMENT AGAINST THE
 CURRENT TENANT IF THE LANDLORD:
   (1) PROVIDES FALSE INFORMATION IN CONNECTION WITH  A  PROPOSED  BUYOUT
 OFFER;
   (2) CONTACTS THE TENANT AT THEIR PLACE OF EMPLOYMENT WITHOUT OBTAINING
 SUCH TENANT'S PERMISSION; OR
   (3)  CONTINUES  TO  CONTACT  THE TENANT WITHIN ONE HUNDRED EIGHTY DAYS
 AFTER THE TENANT HAS ADVISED THE LANDLORD IN WRITING THAT  THEY  DO  NOT
 WANT TO BE CONTACTED FURTHER REGARDING ANY POTENTIAL BUYOUT OFFERS.
   D.  AFTER  RECEIVING  A  PROPOSED  BUYOUT AGREEMENT FROM A LANDLORD, A
 TENANT SHALL HAVE A MINIMUM OF NINETY DAYS FROM THE  TIME  THE  PROPOSED
 BUYOUT  WAS PRESENTED TO THE TENANT, TO ACCEPT OR REJECT SUCH AGREEMENT.
 THE TENANT AND LANDLORD SHALL NOT BE ABLE TO EXECUTE A BUYOUT  AGREEMENT
 UNTIL SUCH NINETY DAY PERIOD HAS LAPSED. THE TENANT SHALL USE THE NINETY
 DAY  PERIOD  TO UNDERSTAND THEIR RIGHTS PERTAINING TO SUCH AGREEMENT AND
 TO SEEK OUT ASSISTANCE FROM COUNSEL IF THEY DESIRE.
   E. WITHIN NINETY DAYS AFTER THE EXECUTION OF A BUYOUT AGREEMENT FOR  A
 DWELLING UNIT, THE LANDLORD OF SUCH UNIT SHALL ELECTRONICALLY PROVIDE TO
 THE DIVISION THE FOLLOWING:
   (1) HIS OR HER NAME;
   (2)  THE  ADDRESS  OF  THE  DWELLING  UNIT THAT IS THE SUBJECT OF SUCH
 BUYOUT AGREEMENT;
   (3) THE AMOUNT OF MONEY OR, IF  APPLICABLE,  A  DESCRIPTION  OF  OTHER
 VALUABLE  CONSIDERATION  AGREED UPON AS PART OF THE BUYOUT AGREEMENT. IF
 SUCH OTHER VALUABLE CONSIDERATION INCLUDED THE DISMISSAL  OF  A  PENDING
 ACTION  OR PROCEEDING, THE CAPTION, INDEX NUMBER AND COUNTY IN WHICH THE
 PENDING ACTION OR PROCEEDING WAS VENUED SHALL BE REQUIRED;
   (4) THE DATE SUCH BUYOUT AGREEMENT WAS EXECUTED; AND
   (5) THE AMOUNT OF TIME, IN MONTHS, REMAINING IN  THE  LEASE  FOR  SUCH
 SUBJECT  DWELLING  UNIT.  A TENANT WITH A LEGAL RIGHT TO A LEASE RENEWAL
 PURSUANT TO STATE LAW SHALL BE INDICATED AS HAVING AN  UNLIMITED  NUMBER
 OF MONTHS REMAINING.
   F.  NO  LATER  THAN  JANUARY  31, 2021, AND BY JANUARY 31 OF EACH YEAR
 THEREAFTER, THE COMMISSIONER SHALL SUBMIT A REPORT TO THE SPEAKER OF THE
 ASSEMBLY AND TEMPORARY PRESIDENT OF THE SENATE THAT CONTAINS  THE  TOTAL
 NUMBER  OF  BUYOUT  AGREEMENTS  EXECUTED DURING THE PRIOR CALENDAR YEAR.
 SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING FOR EACH
 CENSUS TRACT:
   (1) THE AMOUNT OF MONEY OR OTHER CONSIDERATION  AGREED  UPON  IN  EACH
 SUCH AGREEMENT;
   (2) THE DATE THAT EACH SUCH AGREEMENT WAS EXECUTED; AND
   (3)  THE  AMOUNT  OF  TIME,  IN MONTHS, REMAINING IN THE LEASE FOR THE
 DWELLING UNIT SUBJECT TO SUCH AGREEMENT. A TENANT WITH A LEGAL RIGHT  TO
 A  LEASE  RENEWAL  PURSUANT TO STATE LAW SHALL BE INDICATED AS HAVING AN
 UNLIMITED NUMBER OF MONTHS REMAINING.
   G. (1) A LANDLORD WHO SHALL BE REQUIRED TO PROVIDE INFORMATION TO  THE
 DIVISION  AND WHO FAILS TO DO SO PURSUANT TO PARAGRAPH E OF THIS SECTION
 SHALL BE LIABLE TO A CIVIL PENALTY OF FIVE HUNDRED DOLLARS, WHICH  SHALL
 BE PAYABLE TO THE DIVISION.
   (2)  IF  A LANDLORD IS FOUND GUILTY OF HARASSMENT PURSUANT TO SUBDIVI-
 SION C OF THIS SECTION, HAS VIOLATED THE NINETY DAY REQUIRED TIME PERIOD
 PURSUANT TO SUBDIVISION D OF THIS SECTION OR HAS  VIOLATED  THE  MINIMUM
 LEGAL STANDARDS SET FORTH IN THIS SECTION ON HOW A BUYOUT SHALL BE MADE,

 S. 6680                             3
 
 THEY  SHALL  BE  LIABLE  TO  A  PENALTY OF ONE THOUSAND DOLLARS FOR EACH
 VIOLATION.
   §  2.  This act shall take effect July 1, 2020. Effective immediately,
 the addition, amendment, and/or repeal of any rule or regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.

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Senate Bill S6680

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

2019-S6680 (ACTIVE) - Details

2019-S6680 (ACTIVE) - Summary

2019-S6680 (ACTIVE) - Sponsor Memo

2019-S6680 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6680

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Sponsored By

Julia Salazar

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

Alessandra Biaggi

Brad Hoylman-Sigal

Zellnor Myrie

2019-S6680 (ACTIVE) - Details

2019-S6680 (ACTIVE) - Summary

2019-S6680 (ACTIVE) - Sponsor Memo

2019-S6680 (ACTIVE) - Bill Text download pdf

Comments