S T A T E O F N E W Y O R K
________________________________________________________________________
2332
2021-2022 Regular Sessions
I N A S S E M B L Y
January 14, 2021
___________
Introduced by M. of A. L. 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 section 1 of part F of chapter 36 of the laws of 2019, 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] AT LEAST THREE TIMES THE
AMOUNT, NOT TO EXCEED FIVE times the amount of such overcharge. If the
owner establishes by a preponderance of the evidence that the overcharge
was neither willful nor attributable to his OR HER 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 paya-
ble on a judgment pursuant to section five thousand four of the civil
practice law and rules. After a complaint of rent overcharge has been
filed and served on an owner, the voluntary adjustment of the rent
and/or the voluntary tender of a refund of rent overcharges shall not be
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00716-01-1
A. 2332 2
considered by the division of housing and community renewal or a court
of competent jurisdiction as evidence that the overcharge was not will-
ful. (i) Except as to complaints filed pursuant to clause (ii) of this
paragraph, the legal regulated rent for purposes of determining an over-
charge, shall be deemed to be the rent indicated in the most recent
reliable annual registration statement for a rent stabilized tenant
filed and served upon the tenant six or more 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. The division of housing and community renewal
or a court of competent jurisdiction, in investigating complaints of
overcharge and in determining legal regulated rent, shall consider all
available rent history which is reasonably necessary to make such deter-
minations. (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 six years prior to the date of the initial registra-
tion of the housing accommodation (or, if the housing accommodation was
subject to this act for less than six years, the initial legal regulated
rent) plus in each case, any lawful increases and adjustments. Where the
rent charged on the date six years prior to the date of the initial
registration of the accommodation cannot be established, such rent shall
be established by the division.
§ 2. The opening paragraph of subdivision a of section 26-516 of the
administrative code of the city of New York, as amended by section 4 of
part F of chapter 36 of the laws of 2019, 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] AT LEAST THREE TIMES
THE AMOUNT, NOT TO EXCEED FIVE times the amount of such overcharge. If
the owner establishes by a preponderance of the evidence that the over-
charge was not willful, the state division of housing and community
renewal shall establish the penalty as the amount of the overcharge plus
interest. After a complaint of rent overcharge has been filed and served
on an owner, the voluntary adjustment of the rent and/or the voluntary
tender of a refund of rent overcharges shall not be considered by the
division of housing and community renewal or a court of competent juris-
diction as evidence that the overcharge was not willful. (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 most recent reliable annual registration statement
filed and served upon the tenant six or more 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. The division of housing and community renewal
or a court of competent jurisdiction, in investigating complaints of
overcharge and in determining legal regulated rent, shall consider all
available rent history which is reasonably necessary to make such deter-
minations. (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 six years prior to the date
of the initial registration of the housing accommodation (or, if the
A. 2332 3
housing accommodation was subject to this chapter for less than six
years, the initial legal regulated rent) plus in each case, any lawful
increases and adjustments. Where the rent charged on the date six 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, however, that
the amendments to section 26-516 of chapter 4 of title 26 of the admin-
istrative 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.