S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9287
 
                             I N  S E N A T E
 
                               May 12, 2022
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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  multiple  dwelling  law and the private housing
   finance law, in relation to establishing  a  program  to  address  the
   legalization  of  specified inhabited accessory spaces and the conver-
   sion of accessory spaces in a city with a population of one million or
   more
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The multiple dwelling law is amended by adding a new arti-
 cle 7-D to read as follows:
                                ARTICLE 7-D
                             ACCESSORY SPACES
 SECTION 288. DEFINITIONS.
         289. INHABITED ACCESSORY SPACE AND ACCESSORY  SPACE  LOCAL  LAWS
                AND REGULATIONS.
         290. TENANT PROTECTIONS IN INHABITED ACCESSORY SPACES.
   §  288.  DEFINITIONS.  AS  USED IN THIS ARTICLE, UNLESS THE CONTEXT OR
 SUBJECT MATTER REQUIRES OTHERWISE, THE FOLLOWING TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   1.  "INHABITED  ACCESSORY  SPACE"  MEANS AN ACCESSORY SPACE UNLAWFULLY
 OCCUPIED AS A RESIDENCE BY ONE OR MORE TENANTS ON OR PRIOR TO THE EFFEC-
 TIVE DATE OF THIS ARTICLE;
   2. "ACCESSORY SPACE" MEANS OCCUPIABLE SPACE IN A PRIVATE  DWELLING  OR
 MULTIPLE DWELLING OR ON THE SAME TAX LOT AS A PRIVATE DWELLING OR MULTI-
 PLE  DWELLING, INCLUDING BUT NOT LIMITED TO A GARAGE, ATTIC, BASEMENT OR
 CELLAR, THAT IS IN EXISTENCE ON THE EFFECTIVE DATE OF THIS  ARTICLE  AND
 THAT  MAY BE CONVERTED TO HABITABLE SPACE IN ACCORDANCE WITH A LOCAL LAW
 AUTHORIZED BY THIS ARTICLE;
   3. "HABITABLE SPACE" MEANS ROOMS AND SPACES WITHIN  A  DWELLING  UNIT,
 INCLUDING  BEDROOMS,  LIVING ROOMS, STUDIES, RECREATION ROOMS, KITCHENS,
 DINING ROOMS, AND OTHER SIMILAR SPACES;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15876-01-2
              

 S. 9287                             2
 
   4. "OCCUPIABLE SPACE" MEANS A ROOM OR ENCLOSED  SPACE,  OTHER  THAN  A
 HABITABLE SPACE, DESIGNED FOR HUMAN OCCUPANCY OR USE;
   5. "RENTED" MEANS LEASED, LET, OR HIRED OUT, WITH OR WITHOUT A WRITTEN
 AGREEMENT; AND
   6.  "TENANT"  MEANS AN INDIVIDUAL TO WHOM AN INHABITED ACCESSORY SPACE
 IS RENTED.
   § 289. INHABITED ACCESSORY SPACE AND ACCESSORY SPACE  LOCAL  LAWS  AND
 REGULATIONS.    1. NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL
 LAW TO THE CONTRARY, IN A CITY WITH A POPULATION OF ONE MILLION OR MORE,
 THE LOCAL LEGISLATIVE BODY MAY, BY LOCAL LAW,  ESTABLISH  A  PROGRAM  TO
 ADDRESS,  AS APPROPRIATE, AND PROVIDED THAT SAFETY IS PROTECTED, (A) THE
 LEGALIZATION OF SPECIFIED INHABITED ACCESSORY SPACES THROUGH  CONVERSION
 OF SUCH SPACES THAT ARE IN EXISTENCE PRIOR TO THE EFFECTIVE DATE OF THIS
 ARTICLE  TO  LEGAL DWELLING UNITS, OR (B) THE CONVERSION OF OTHER SPECI-
 FIED ACCESSORY SPACES IN EXISTENCE PRIOR TO THE EFFECTIVE DATE  OF  THIS
 ARTICLE TO LEGAL DWELLING UNITS.
   2.  THE  PROGRAM ESTABLISHED BY SUCH LOCAL LAW MAY PROVIDE TO AN OWNER
 WHO CONVERTS AN INHABITED ACCESSORY SPACE IN ACCORDANCE WITH A LOCAL LAW
 AUTHORIZED BY THIS ARTICLE OR WHO OTHERWISE ABATES THE ILLEGAL OCCUPANCY
 OF AN ACCESSORY SPACE  AMNESTY  FROM  PROSECUTION,  AS  APPLICABLE,  FOR
 VIOLATIONS  OF  THIS CHAPTER OR OTHER STATE LAW OR LOCAL LAW, RULES, AND
 THE ZONING RESOLUTION OF SUCH CITY, AND RESOLUTION  OF  ANY  OUTSTANDING
 JUDGMENTS ISSUED IN CONNECTION WITH ANY VIOLATION OF SUCH LAWS, RULES OR
 ZONING RESOLUTION ISSUED BEFORE THE EFFECTIVE DATE OF THIS ARTICLE.
   3.  SUCH  LOCAL  LAW MAY PROVIDE THAT ANY PROVISION OF THIS CHAPTER OR
 ANY OTHER STATE LAW OR LOCAL LAW,  RULE  OR  REGULATION,  SHALL  NOT  BE
 APPLICABLE,  AS  NECESSARY, TO PROVIDE FOR THE ALTERATIONS NECESSARY FOR
 THE CONVERSION OF AN INHABITED ACCESSORY SPACE OR ACCESSORY SPACE INTO A
 LAWFUL DWELLING UNIT. ANY AMENDMENT OF THE ZONING  RESOLUTION  NECESSARY
 TO  ENACT SUCH PROGRAM SHALL BE SUBJECT TO A PUBLIC HEARING AT THE PLAN-
 NING COMMISSION OF SUCH LOCALITY, AND APPROVAL BY  SUCH  COMMISSION  AND
 THE  LEGISLATIVE  BODY  OF  SUCH LOCAL GOVERNMENT, BUT SHALL NOT REQUIRE
 ENVIRONMENTAL REVIEW OR ANY ADDITIONAL LAND USE REVIEW.
   § 290. TENANT PROTECTIONS IN  INHABITED  ACCESSORY  SPACES.    1.  THE
 PROGRAM  AUTHORIZED BY THIS ARTICLE SHALL REQUIRE AN APPLICATION TO MAKE
 ALTERATIONS TO LEGALIZE AN INHABITED ACCESSORY SPACE BE ACCOMPANIED BY A
 CERTIFICATION INDICATING WHETHER SUCH UNIT WAS RENTED TO A TENANT ON THE
 EFFECTIVE DATE OF THIS ARTICLE, NOTWITHSTANDING WHETHER THE OCCUPANCY OF
 SUCH UNIT WAS AUTHORIZED BY LAW. A CITY MAY NOT USE  SUCH  CERTIFICATION
 AS  THE  BASIS  FOR  AN ENFORCEMENT ACTION FOR ILLEGAL OCCUPANCY OF SUCH
 UNIT, PROVIDED THAT NOTHING CONTAINED IN THIS ARTICLE SHALL BE CONSTRUED
 TO LIMIT SUCH CITY FROM ISSUING A VACATE ORDER FOR HAZARDOUS CONDITIONS,
 WHEN APPROPRIATE.
   2. THE LOCAL LAW AUTHORIZED BY  THIS  ARTICLE  SHALL  PROVIDE  THAT  A
 TENANT  IN  OCCUPANCY AT THE TIME OF THE EFFECTIVE DATE OF THIS ARTICLE,
 WHO IS EVICTED OR OTHERWISE REMOVED FROM SUCH UNIT AS  A  RESULT  OF  AN
 ALTERATION  NECESSARY TO BRING AN INHABITED ACCESSORY SPACE INTO COMPLI-
 ANCE WITH THE STANDARDS ESTABLISHED BY THE LOCAL LAW AUTHORIZED BY  THIS
 ARTICLE, SHALL HAVE A RIGHT OF FIRST REFUSAL TO RETURN TO SUCH UNIT AS A
 TENANT  UPON  ITS  FIRST  LAWFUL  OCCUPANCY  AS  A  LEGAL DWELLING UNIT,
 NOTWITHSTANDING WHETHER THE OCCUPANCY AT THE TIME OF THE EFFECTIVE  DATE
 OF  THIS ARTICLE WAS AUTHORIZED BY LAW. SUCH LOCAL LAW SHALL SPECIFY HOW
 TO DETERMINE PRIORITY WHEN MULTIPLE TENANTS MAY CLAIM SUCH RIGHT.
   3. A TENANT UNLAWFULLY DENIED A RIGHT OF FIRST REFUSAL TO RETURN TO  A
 LEGAL DWELLING UNIT, AS PROVIDED PURSUANT TO THE LOCAL LAW AUTHORIZED BY
 THIS  ARTICLE,  SHALL  HAVE  A CAUSE OF ACTION IN ANY COURT OF COMPETENT
 S. 9287                             3
 
 JURISDICTION FOR COMPENSATORY  DAMAGES  OR  DECLARATORY  AND  INJUNCTIVE
 RELIEF  AS  THE  COURT  DEEMS  NECESSARY  IN  THE  INTERESTS OF JUSTICE,
 PROVIDED THAT SUCH COMPENSATORY  RELIEF  SHALL  NOT  EXCEED  THE  ANNUAL
 RENTAL CHARGES FOR SUCH LEGAL DWELLING UNIT.
   §  2. Subdivision 1 of section 472 of the private housing finance law,
 as amended by chapter 479 of the laws of 2005, is  amended  to  read  as
 follows:
   1.  Notwithstanding  the  provisions  of any general, special or local
 law, a municipality, acting through an agency,  is  authorized:  (A)  to
 make,  or contract to make, loans to low and moderate income owner-occu-
 pants of one to four unit existing private or multiple dwellings  within
 its  territorial  limits,  subject to the limitation of subdivisions two
 through seven of this section, in such amounts as shall be required  for
 the rehabilitation of such dwellings, provided, however, that such loans
 shall  not  exceed sixty thousand dollars per dwelling unit, EXCEPT THAT
 THE LIMITATION ON THE MAXIMUM AMOUNT OF A LOAN,  AS  DESCRIBED  IN  THIS
 PARAGRAPH,  SHALL  NOT  APPLY TO ANY SUCH LOAN FOR, IN WHOLE OR IN PART,
 REHABILITATION OF AN INHABITED ACCESSORY SPACE OR AN ACCESSORY SPACE FOR
 WHICH SUCH OWNER HAS SOUGHT A PERMIT PURSUANT TO THE LOCAL  LAW  AUTHOR-
 IZED  PURSUANT TO SECTION TWO HUNDRED EIGHTY-NINE OF THE MULTIPLE DWELL-
 ING LAW. Such loans may also include the refinancing of the  outstanding
 indebtedness  of such dwellings, and the municipality may make temporary
 loans or advances to such owner-occupants in anticipation  of  permanent
 loans for such purposes; AND
   (B) TO MAKE OR CONTRACT TO MAKE GRANTS TO ANY OWNER DESCRIBED IN PARA-
 GRAPH (A) OF THIS SUBDIVISION, ON THE SAME TERMS AS PERMITTED UNDER SUCH
 PARAGRAPH FOR A LOAN.
   §  3.  Section  472  of  the private housing finance law is amended by
 adding a new subdivision 1-a to read as follows:
   1-A. AS USED IN THIS ARTICLE, THE TERM "LOAN" SHALL INCLUDE ANY  GRANT
 MADE BY A MUNICIPALITY PURSUANT TO THIS ARTICLE, PROVIDED, HOWEVER, THAT
 PROVISIONS  OF  THIS ARTICLE CONCERNING THE REPAYMENT OR FORGIVENESS OF,
 OR SECURITY FOR, A LOAN SHALL NOT APPLY TO ANY GRANT  MADE  PURSUANT  TO
 THIS ARTICLE.
   §  4. Subdivision 2 of section 473 of the private housing finance law,
 as added by chapter 786 of the laws of  1987,  is  amended  to  read  as
 follows:
   2.  A  municipality shall neither make nor participate in a loan to an
 owner-occupant of an existing private or multiple dwelling  pursuant  to
 this  article unless the agency finds that the area in which such dwell-
 ing is situated is a blighted, deteriorated or deteriorating area or has
 a blighting influence on the surrounding area, or is in danger of becom-
 ing a slum or a blighted area because of the existence  of  substandard,
 unsanitary,  deteriorating  or  deteriorated conditions, an aged housing
 stock, or other factors indicating an inability of the private sector to
 cause such rehabilitation to be made, EXCEPT THAT ANY SUCH FINDING SHALL
 NOT BE REQUIRED FOR ANY SUCH LOAN FOR, IN WHOLE OR  IN  PART,  REHABILI-
 TATION  OF  AN INHABITED ACCESSORY SPACE OR AN ACCESSORY SPACE FOR WHICH
 SUCH OWNER HAS SOUGHT A PERMIT PURSUANT  TO  THE  LOCAL  LAW  AUTHORIZED
 PURSUANT  TO  SECTION  TWO  HUNDRED EIGHTY-NINE OF THE MULTIPLE DWELLING
 LAW.
   § 5. This act shall take effect immediately.