S T A T E O F N E W Y O R K
________________________________________________________________________
1075
2023-2024 Regular Sessions
I N A S S E M B L Y
January 13, 2023
___________
Introduced by M. of A. EPSTEIN, GONZALEZ-ROJAS, GLICK, MAMDANI, GALLAGH-
ER, REYES, JACKSON, CARROLL, BICHOTTE HERMELYN, AUBRY, BENEDETTO,
TAPIA, MITAYNES, SIMON, ANDERSON, CRUZ, GIBBS, FORREST, HEVESI,
CUNNINGHAM -- read once and referred to the Committee on Local Govern-
ments
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 basements and cellars and the conversion of
other specified basements and cellars 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
LEGALIZATION AND CONVERSION OF BASEMENTS AND CELLARS
SECTION 288. DEFINITIONS.
289. BASEMENT AND CELLAR LOCAL LAWS AND REGULATIONS.
290. TENANT PROTECTIONS IN INHABITED BASEMENTS OR CELLARS.
§ 288. DEFINITIONS. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OR
SUBJECT MATTER REQUIRES OTHERWISE, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
1. THE TERM "INHABITED BASEMENT OR CELLAR" MEANS A BASEMENT OR CELLAR
UNLAWFULLY OCCUPIED AS A RESIDENCE BY ONE OR MORE TENANTS ON OR PRIOR TO
THE EFFECTIVE DATE OF THIS ARTICLE;
2. THE TERM "RENTED" MEANS LEASED, LET, OR HIRED OUT, WITH OR WITHOUT
A WRITTEN AGREEMENT; AND
3. THE TERM "TENANT" MEANS AN INDIVIDUAL TO WHOM AN INHABITED BASEMENT
OR CELLAR IS RENTED.
§ 289. BASEMENT AND CELLAR LOCAL LAWS AND REGULATIONS. 1. NOTWITH-
STANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW TO THE CONTRARY, IN A
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03476-01-3
A. 1075 2
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 BASEMENTS AND CELLARS IN EXISTENCE PRIOR TO THE EFFECTIVE DATE
OF THIS ARTICLE THROUGH CONVERSION TO LEGAL DWELLING UNITS, OR (B) THE
CONVERSION OF OTHER SPECIFIED BASEMENTS AND CELLARS IN EXISTENCE PRIOR
TO THE EFFECTIVE DATE OF THIS ARTICLE TO LEGAL DWELLING UNITS. THE LOCAL
LAW AUTHORIZED BY THIS SECTION, AND ANY RULES OR REGULATIONS PROMULGATED
THEREUNDER, SHALL NOT BE SUBJECT TO ENVIRONMENTAL REVIEW.
2. THE PROGRAM ESTABLISHED BY SUCH LOCAL LAW MAY PROVIDE TO AN OWNER
WHO CONVERTS AN INHABITED BASEMENT OR CELLAR IN ACCORDANCE WITH A LOCAL
LAW AUTHORIZED BY THIS ARTICLE OR WHO OTHERWISE ABATES THE ILLEGAL OCCU-
PANCY OF A BASEMENT OR CELLAR 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 OUTSTAND-
ING 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 A SPECIFIED INHABITED BASEMENT OR CELLAR OR OTHER
SPECIFIED BASEMENT OR CELLAR 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 PLANNING 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 BASEMENTS OR CELLARS. 1. THE
PROGRAM AUTHORIZED BY THIS ARTICLE SHALL REQUIRE AN APPLICATION TO MAKE
ALTERATIONS TO LEGALIZE AN INHABITED BASEMENT OR CELLAR BE ACCOMPANIED
BY A CERTIFICATION INDICATING WHETHER SUCH UNIT WAS RENTED TO A TENANT
ON THE EFFECTIVE DATE OF THIS ARTICLE, NOTWITHSTANDING WHETHER THE OCCU-
PANCY OF SUCH UNIT WAS AUTHORIZED BY LAW. A CITY MAY NOT USE SUCH
CERTIFICATION AS THE BASIS FOR AN ENFORCEMENT ACTION FOR ILLEGAL OCCU-
PANCY 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 BASEMENT OR CELLAR INTO
COMPLIANCE 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
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.
A. 1075 3
§ 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 A SPECIFIED INHABITED BASEMENT OR CELLAR OR OTHER
SPECIFIED BASEMENT OR CELLAR 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. 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-oc-
cupants 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 A SPECIFIED INHABITED BASEMENT OR CELLAR OR OTHER SPECIFIED
BASEMENT OR CELLAR 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.