NY State Senate Bill 2021-S781

Senate Bill S781

2021-2022 Legislative Session

Relating to prohibiting the sale or rental of illegally converted dwellings by real estate brokers

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary
Jan 06, 2021	referred to judiciary

2021-S781 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §443-b, amd §441-c, RP L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5458
2023-2024: S16

2021-S781 (ACTIVE) - Summary

Prohibits the sale or rental of illegally converted dwellings by real estate brokers; directs increased fines and revocation of real estate license for violation.

2021-S781 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S781

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the real property law, in relation to sale or rent of
illegally converted dwellings

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill prohibits the listing for sale, sale and offer to sell, list-
ing for rent, renting and offer to rent any illegally converted dwell-
ing. The bill establishes punishment for real estate brokers, agents and
salespeople who violate the legislation as a revocation of their
license.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends the real property law by adding a new
section 443-b to prohibit real estate brokers, agents and salespeople
from listing for sale, selling or offering to sell, listing for rent,

renting and offering to rent any illegally converted dwelling. An ille-
gal conversion is any change to structural parts or existing facilities
of any building including but the subdivision of rooms, or erection or
demolition of walls, or the moving of any building from one location or
position to another, in violation of any state or local law, ordinance,
code or rule or regulation relating to real property, buildings or
multiple dwellings.

Section two of the bill adds language to paragraph (a) of subdivision 1
of section 441-c of the real property law that establishes a punishment
of license revocation for any real estate broker, agent or salesperson
that violates the provisions of section 1 of this bill, 443-b. In find-
ing that a violation has been made by an agent, broker or salesman, the
violation punishments from the department are listed: ten thousand
dollars fine for 1st violation, fifty thousand fine for second violation
and revocation of license for 3rd violation are issued under this arti-
cle.

Section three of the bill provides the effective date as immediate.

 
JUSTIFICATION:

Illegal home conversion is a systemic issue in our state and often
plagues communities with vulnerable, low-income and often immigrant
tenants seeking housing in an unaffordable market. Illegally converted
dwellings create a safety hazard for those occupying the dwelling, their
neighbors and for first responders in the event of an emergency that
requires entry into the dwellings.

While enforcement efforts are pursued by many law enforcement agencies
in the state, the issue of illegal home conversions and the substandard
conditions faced by many fearful tenants - remain. In some cases, many
landlords or building owners find that the costs associated with being
caught for such violations are a cost of doing business.

Solving the issue of illegal dwelling occupancy requires more unconven-
tional approaches which will approach the issue differently than the
traditional way of fining the landlord and ordering the landlord to
cease renting illegally converted units. This bill will punish and deter
real estate brokers, agents and salespeople from selling or attempting
to negotiate illegally converted dwellings, which will hopefully combat
the swelling issue of illegal home conversions from a different legal
angle and will make our communities safer.

 
PRIOR LEGISLATIVE HISTORY:

2020: S5458A - Referred to Judiciary

2019: S5458 - Referred to Judiciary

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediate

2021-S781 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    781
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN  ACT  to  amend the real property law, in relation to sale or rent of
   illegally converted dwellings

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real property law is amended by adding a new section
 443-b to read as follows:
   § 443-B. SALE OR RENT OF PROPERTY VIOLATING ILLEGAL CONVERSION  RULES.
 NO  REAL  ESTATE  BROKER, AGENT OR SALESMAN SHALL LIST FOR SALE, SELL OR
 OFFER TO SELL, OR LIST FOR RENT, RENT OR OFFER  TO  RENT  ANY  ILLEGALLY
 CONVERTED DWELLING. FOR THE PURPOSES OF THIS SECTION, AN ILLEGAL CONVER-
 SION  SHALL  MEAN ANY CHANGE IN THE STRUCTURAL PARTS OR EXISTING FACILI-
 TIES OF ANY BUILDING, INCLUDING, BUT NOT LIMITED TO, THE SUBDIVISION  OF
 ROOMS, OR ERECTION OR DEMOLITION OF WALLS, OR THE MOVING OF ANY BUILDING
 FROM  ONE  LOCATION OR POSITION TO ANOTHER, IN VIOLATION OF ANY STATE OR
 LOCAL LAW, ORDINANCE, CODE OR RULE OR REGULATION RELATING TO REAL  PROP-
 ERTY, BUILDINGS OR MULTIPLE DWELLINGS.
   § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
 erty  law,  as amended by chapter 131 of the laws of 2020, is amended to
 read as follows:
   (a) The department of state may revoke the license of  a  real  estate
 broker  or  salesman or suspend the same, for such period as the depart-
 ment may deem proper, or in lieu thereof may impose a fine not exceeding
 one thousand dollars payable to the department of state, or a  reprimand
 upon  conviction of the licensee of a violation of any provision of this
 article, or for a material misstatement  in  the  application  for  such
 license,  or  if  such  licensee  has been guilty of fraud or fraudulent
 practices, or for dishonest or misleading  advertising,  or  has  demon-
 strated untrustworthiness or incompetency to act as a real estate broker
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD03130-01-1

 S. 781                              2
 
 or  salesman, or for a violation of article fifteen of the executive law
 committed in his or her capacity as a real estate broker or salesman, as
 the case may be.  UPON A FINDING THAT A BROKER, AGENT  OR  SALESMAN  HAS
 VIOLATED  THE  PROVISIONS  OF SECTION FOUR HUNDRED FORTY-THREE-B OF THIS
 ARTICLE, THE DEPARTMENT SHALL IMPOSE A FINE OF TEN THOUSAND DOLLARS  FOR
 A  FIRST  VIOLATION  AND A FINE OF FIFTEEN THOUSAND DOLLARS FOR A SECOND
 VIOLATION. UPON A THIRD VIOLATION OF SUCH SECTION THE  DEPARTMENT  SHALL
 REVOKE  THE  LICENSE  ISSUED  UNDER  THIS ARTICLE. In the case of a real
 estate broker engaged in the business of a tenant relocator, untrustwor-
 thiness or incompetency shall include engaging in any course of  conduct
 including,  but  not  limited  to, the interruption or discontinuance of
 essential building service, that interferes with or disturbs the  peace,
 comfort, repose and quiet enjoyment of a tenant.
   § 3. This act shall take effect immediately.

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