S T A T E O F N E W Y O R K
________________________________________________________________________
385
2021-2022 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 6, 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 times the amount of such over-
charge. A TREBLE DAMAGE PENALTY SHALL 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 neither willful
nor attributable to his negligence, the state division of housing and
community renewal shall establish the penalty as the amount of the over-
charge plus interest at the rate of interest payable on a judgment
pursuant to section five thousand four of the civil practice law and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00466-01-1
A. 385 2
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 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
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 state-
ment)] plus in each case any subsequent lawful increases and adjust-
ments. 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 determinations. (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
[six] 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 [six] FOUR years, the initial legal regulated
rent) plus in each case, any lawful increases and adjustments. Where the
rent charged on the date [six] FOUR years prior to the date of the
initial registration of the accommodation cannot be established, such
rent shall be established by the division. (III) FAILURE TO FILE AN
ANNUAL RENT REGISTRATION STATEMENT SHALL RESULT IN A FINE OF TWO THOU-
SAND DOLLARS PER UNREGISTERED HOUSING ACCOMMODATION, MADE PAYABLE TO THE
STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL.
§ 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 times the amount of
such overcharge. A TREBLE DAMAGE PENALTY SHALL 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. 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 jurisdiction as evidence that
the overcharge was not willful. (i) Except as to complaints filed pursu-
ant 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 state-
ment)] plus in each case any subsequent lawful increases and adjust-
A. 385 3
ments. 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 determinations. (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] FOUR years prior to the date of the
initial registration of the housing accommodation (or, if the housing
accommodation was subject to this chapter for less than [six] FOUR
years, the initial legal regulated rent) plus in each case, any lawful
increases and adjustments. Where the rent charged on the date [six] FOUR
years prior to the date of the initial registration of the accommodation
cannot be established, such rent shall be established by the division.
(III) FAILURE TO FILE AN ANNUAL RENT REGISTRATION STATEMENT SHALL RESULT
IN A FINE OF TWO THOUSAND DOLLARS PER UNREGISTERED HOUSING ACCOMMO-
DATION, MADE PAYABLE TO THE STATE DIVISION OF HOUSING AND COMMUNITY
RENEWAL.
§ 3. This act shall take effect immediately; provided, however, that
the amendments to the opening paragraph of subdivision a of 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.