S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  547--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on Housing, Construction
   and Community Development -- recommitted to the Committee on  Housing,
   Construction  and Community Development in accordance with Senate Rule
   6, sec. 8 -- committee discharged, bill amended, ordered reprinted  as
   amended  and  recommitted  to  said committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT to amend the real property tax law, in relation to directing the
   comptroller of the city of  New  York  to  conduct  annual  audits  of
   compliance with the affordable New York housing program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 421-a of the real property tax law  is  amended  by
 adding two new subdivisions 18 and 19 to read as follows:
   18. (A) THE COMPTROLLER OF THE CITY OF NEW YORK SHALL CONDUCT AN ANNU-
 AL AUDIT OF THE AFFORDABLE NEW YORK HOUSING PROGRAM ESTABLISHED PURSUANT
 TO  THIS  SECTION  TO  MEASURE  COMPLIANCE WITH THE REQUIREMENTS OF THIS
 SECTION. THE COMPTROLLER OF THE CITY OF NEW YORK SHALL CREATE A  PROGRAM
 TO  AUDIT  AND  REVIEW PROPERTIES WHICH RECEIVE BENEFITS PURSUANT TO THE
 AFFORDABLE NEW YORK HOUSING PROGRAM TO CONFIRM THAT OWNERS OF SUCH PROP-
 ERTIES ARE COMPLYING WITH THE  RENT  REGISTRATION,  AFFORDABILITY,  RENT
 STABILIZATION  AND  APPLICATION REQUIREMENTS OF SUCH PROGRAM.  THE DIVI-
 SION OF HOUSING AND COMMUNITY RENEWAL, THE DEPARTMENT OF HOUSING PRESER-
 VATION AND DEVELOPMENT, THE NEW YORK CITY DEPARTMENT OF FINANCE, AND ANY
 OWNER OF A PROPERTY RECEIVING BENEFITS PURSUANT TO  THIS  SECTION  SHALL
 PROVIDE  ANY  AND  ALL  INFORMATION, DATA, OR DOCUMENTATION TO THE COMP-
 TROLLER OF THE CITY OF NEW YORK WHICH IS DEEMED NECESSARY BY  THE  COMP-
 TROLLER  OF  THE CITY OF NEW YORK IN ORDER TO COMPLETE THE AUDIT PROCESS
 REQUIRED BY THIS SECTION OF LAW.  THE INITIAL AUDIT SHALL  BE  COMPLETED
 ON  OR  BEFORE  DECEMBER  THIRTY-FIRST  OF TWO THOUSAND TWENTY-FIVE. THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00166-10-4
              

 S. 547--B                           2
 
 COMPTROLLER OF THE CITY OF NEW YORK SHALL PUBLISH  THE  RESULTS  OF  THE
 AUDIT  ANNUALLY  ON  OR BEFORE DECEMBER THIRTY-FIRST AND SHALL MAKE SUCH
 RESULTS PUBLICLY AVAILABLE ON THE COMPTROLLER'S WEBSITE.  ALL PROPERTIES
 WHICH ARE RECEIVING OR HAVE RECEIVED BENEFITS PURSUANT TO THE AFFORDABLE
 NEW  YORK HOUSING PROGRAM OR PRIOR PROGRAMS ESTABLISHED PURSUANT TO THIS
 SECTION SHALL BE ELIGIBLE FOR THE INITIAL AUDIT; PROVIDED, HOWEVER, THAT
 ONLY PROPERTIES WHICH RECEIVED BENEFITS DURING THE PRIOR YEAR  SHALL  BE
 ELIGIBLE  FOR  SUBSEQUENT AUDITS.   IN THE EVENT THAT THE AFFORDABLE NEW
 YORK HOUSING PROGRAM IS TERMINATED OR OTHERWISE  DISCONTINUED,  A  FINAL
 AUDIT OF THE PROGRAM SHALL BE SUBMITTED ONE YEAR AFTER THE LAST PROPERTY
 SUBJECT  TO  RENT  REGISTRATION,  AFFORDABILITY,  RENT STABILIZATION AND
 APPLICATION REQUIREMENTS OF THE PROGRAM IS NO  LONGER  SUBJECT  TO  SUCH
 REQUIREMENTS.
   (B)  (I)  IF AN AUDIT BY THE COMPTROLLER OF THE CITY OF NEW YORK FINDS
 ANY UNITS ARE NOT IN COMPLIANCE WITH THE RENT REGISTRATION, AFFORDABILI-
 TY, RENT STABILIZATION, AND APPLICATION REQUIREMENTS OF  THE  AFFORDABLE
 NEW  YORK HOUSING PROGRAM, THE COMPTROLLER OF THE CITY OF NEW YORK SHALL
 PRESENT EVIDENCE OF SUCH NONCOMPLIANCE TO THE DIVISION  OF  HOUSING  AND
 COMMUNITY  RENEWAL,  THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOP-
 MENT, AND THE NEW  YORK  CITY  DEPARTMENT  OF  FINANCE  FOR  ENFORCEMENT
 ACTIONS  AS  PROVIDED.  SUCH NOTIFICATION OF NONCOMPLIANCE SHALL BE MADE
 WITHIN FIFTEEN DAYS AFTER THE RESULTS OF THE AUDIT HAVE  BEEN  PUBLISHED
 ON THE COMPTROLLER'S WEBSITE.
   (II)  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, THE DEPARTMENT OF
 HOUSING PRESERVATION AND DEVELOPMENT, AND THE NEW YORK  CITY  DEPARTMENT
 OF  FINANCE  SHALL  ENFORCE  AND  REMEDY ANY NONCOMPLIANCE WITH THE RENT
 REGISTRATION,  AFFORDABILITY,  RENT   STABILIZATION,   AND   APPLICATION
 REQUIREMENTS  AS  PROVIDED  OR  AVAILABLE  UNDER ANY OTHER LAW, RULE, OR
 REGULATION.
   19. DURING AND ON AND AFTER THE EXPIRATION DATE OF THE AFFORDABLE  NEW
 YORK HOUSING PROGRAM BENEFIT PROVIDED PURSUANT TO THIS SECTION, PROVIDED
 SUCH  PROJECT IS REQUIRED TO COMPLY WITH ANY AFFORDABILITY REQUIREMENTS,
 THE DEPARTMENT OF HOUSING PRESERVATION  AND  DEVELOPMENT  SHALL  IMPOSE,
 AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD, A PENALTY FOR ANY VIOLATION
 OF THE AFFORDABILITY REQUIREMENTS OF THIS SECTION BY SUCH PROJECT.
   (A)  THE  DEPARTMENT  OF  HOUSING  PRESERVATION  AND DEVELOPMENT SHALL
 ESTABLISH A SCHEDULE AND METHOD OF CALCULATION OF SUCH PENALTIES.
   (B) A PENALTY UNDER THIS SUBDIVISION SHALL BE IMPOSED ON THE OWNER  OF
 THE  ELIGIBLE  SITE  CONTAINING  SUCH  PROJECT AT THE TIME THE VIOLATION
 OCCURRED.
   (C) A FAILURE TO PAY SUCH FINE MAY RESULT IN A  LIEN  AND  SUCH  OTHER
 REMEDIES AS MAY BE AVAILABLE PURSUANT TO APPLICABLE LAW AND REGULATION.
   (D)  THE  DEPARTMENT  OF  HOUSING  PRESERVATION  AND DEVELOPMENT SHALL
 ENSURE THE MINIMUM NUMBER OF REQUIRED AFFORDABLE UNITS  ARE  OFFERED  IN
 COMPLIANCE  WITH THE APPROPRIATE AFFORDABILITY REQUIREMENTS AT ALL TIMES
 SUCH AFFORDABILITY REQUIREMENTS APPLY. THIS INCLUDES, BUT IS NOT LIMITED
 TO, FOR EACH UNIT DESIGNATED AS AN AFFORDABLE UNIT FOUND NOT  TO  BE  IN
 COMPLIANCE  WITH THE AFFORDABILITY REQUIREMENTS, THE DEPARTMENT OF HOUS-
 ING PRESERVATION AND DEVELOPMENT  SHALL  EITHER  BRING  SUCH  DESIGNATED
 AFFORDABLE  UNIT  INTO COMPLIANCE WITH THE AFFORDABILITY REQUIREMENTS OR
 DESIGNATE ANOTHER UNIT OF SIMILAR SIZE AS AN AFFORDABLE UNIT IN  SUBSTI-
 TUTION OF THE ORIGINAL UNIT.
   §  2.  Subparagraph  (ii) of paragraph (f) of subdivision 2 of section
 421-a of the real property tax law, as amended by  chapter  289  of  the
 laws of 1985, is amended to read as follows:
 S. 547--B                           3
 
   (ii)  with  respect to units which become subject to the provisions of
 this section after the effective date of  this  subparagraph,  such  tax
 benefit period as provided in the opening paragraph of this paragraph or
 applicable  law  or  act  shall  have  expired and either each lease and
 renewal thereof for such unit for the tenant in residence at the time of
 such  decontrol  has  included  a  notice  in at least twelve point type
 informing such tenant that the unit shall become subject to such  decon-
 trol  upon  the expiration of such tax benefit period as provided in the
 opening paragraph of this paragraph or applicable law or act and  states
 the approximate date on which such tax benefit period as provided in the
 opening paragraph of this paragraph is scheduled to expire; or such unit
 becomes  vacant  as  provided  under subparagraph (i) of this paragraph.
 NEITHER A LANDLORD NOR ANY PERSON ACTING ON BEHALF OF THE LANDLORD SHALL
 INCLUDE INCORRECT OR  MISLEADING  INFORMATION  IN  ANY  NOTICE  PROVIDED
 PURSUANT TO THIS SUBPARAGRAPH. A LANDLORD OR ANY PERSON ACTING ON BEHALF
 OF  THE LANDLORD WHO WILLFULLY INCLUDES INFORMATION THEY KNOW OR REASON-
 ABLY KNOW TO BE  MISLEADING  OR  INCORRECT  INFORMATION  IN  ANY  NOTICE
 PROVIDED PURSUANT TO THIS SUBPARAGRAPH OR FAILS TO PROVIDE THE STANDARD-
 IZED  RIDER PURSUANT TO PARAGRAPH (F-1) OF THIS SUBDIVISION IS GUILTY OF
 A VIOLATION PUNISHABLE BY A FINE OF ONE THOUSAND DOLLARS.
   § 3. Subdivision 2 of section 421-a of the real property  tax  law  is
 amended by adding a new paragraph (f-1) to read as follows:
   (F-1)  THE  COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL STAND-
 ARDIZE THE NOTICE TO BE PROVIDED BY LANDLORDS TO THEIR TENANTS  PURSUANT
 TO  SUBPARAGRAPH  (II) OF PARAGRAPH (F) OF THIS SUBDIVISION. SUCH NOTICE
 SHALL BE PRINTED IN AT LEAST TWELVE POINT TYPE  AND  SHALL  INCLUDE  THE
 FOLLOWING LANGUAGE:
                     "421-A STANDARD RIDER FACT SHEET
 ANY  HOUSING  UNIT THAT RECEIVES TAX BENEFITS UNDER SECTION 421-A OF THE
 NEW YORK STATE REAL PROPERTY LAW MAY REMAIN AFFORDABLE FOR A  PERIOD  OF
 TIME  DEPENDING  ON  A VARIETY OF FACTORS, INCLUDING THE LOCATION OF THE
 UNIT, THE COMMENCEMENT OF CONSTRUCTION  AND  THE  AFFORDABILITY  IN  THE
 PROJECT. FAILURE TO PROVIDE THE INITIAL STANDARDIZED RIDER MAY RESULT IN
 THE  UNIT  REMAINING  RENT  STABILIZED  FOR THE DURATION OF THE TENANCY.
 SPECIFIC DETAILS RELATED TO YOUR UNIT ARE  LISTED  ON  THE  NEXT  SHEET.
 WHILE  YOUR UNIT RECEIVES 421-A TAX BENEFITS, IT WILL BE SUBJECT TO RENT
 STABILIZATION. NEW YORK STATE'S RENT REGULATION LAWS PROVIDE TENANTS  IN
 RENT-STABILIZED   APARTMENTS   WITH   A  VARIETY  OF  LEGAL  RIGHTS  AND
 PROTECTIONS. THE OWNER OF YOUR BUILDING MUST PROVIDE  YOU  WITH  A  RENT
 STABILIZED  LEASE  WHEN  YOU  FIRST MOVE IN AND ALSO EACH TIME YOU RENEW
 YOUR LEASE FOR YOUR CHOICE OF EITHER A ONE OR TWO YEAR TERM, FOR AS LONG
 AS YOUR APARTMENT REMAINS RENT STABILIZED.
 YOU ARE ENTITLED TO CONTINUOUS LEASE RENEWALS WHILE  YOUR  APARTMENT  IS
 RENT  STABILIZED.  WHEN  YOU  RENEW  YOUR  LEASE,  YOUR RENT MAY ONLY BE
 INCREASED BY AN AMOUNT DETERMINED BY NEW YORK  STATE'S  RENT  REGULATION
 LAWS,       WHICH       MAY       BE       FOUND       BY       VISITING
 HTTPS://RENTGUIDELINESBOARD.CITYOFNEWYORK.US/RESOURCES/RENT-
 REGULATIONLAWS/, AND PERMITTED BY APPLICABLE TAX BENEFIT LAWS.
 RENT INCREASES FOR RENT-STABILIZED TENANTS ARE  DETERMINED  BY  THE  NEW
 YORK  CITY  RENT  GUIDELINES BOARD, AND MAY ONLY INCREASE BY A SPECIFIED
 AMOUNT WITHIN A ONE-YEAR OR TWO-YEAR LEASE TERM. FOR  MORE  INFORMATION,
 PLEASE  VISIT HTTPS://RENTGUIDELINESBOARD.CITYOFNEWYORK.US/ OR CALL 311.
 RENT-STABILIZED TENANTS ARE ALSO ENTITLED TO PETITION THE NEW YORK STATE
 HOMES AND COMMUNITY RENEWAL BY VISITING HTTPS://HCR.NY.GOV/  OR  CALLING
 (833)  499-0343  OR  BY  CONTACTING  THE APPROPRIATE RENT ADMINISTRATION
 BOROUGH OFFICE.
 S. 547--B                           4

                         421-A RIDER - UNIT NUMBER
 AS  A  RENT-REGULATED TENANT, YOUR RIGHTS ARE DETERMINED BY 421-A OF THE
 NEW YORK STATE REAL PROPERTY LAW. FOR MORE INFORMATION, YOU MAY  CONTACT
 NEW  YORK  STATE HOUSING AND COMMUNITY RENEWAL BY CALLING (833) 499-0343
 OR VISITING HTTPS://HCR.NY.GOV/ OR THE NEW YORK CITY DEPARTMENT OF HOUS-
 ING     PRESERVATION      BY      CALLING      311      OR      VISITING
 HTTPS://WWW1.NYC.GOV/SITE/HPD/INDEX.PAGE.
 THE  FIRST RENT AS OF DATE OF INITIAL LEASE COMMENCEMENT FOR UNIT APART-
 MENT NUMBER___ IS AMOUNT ___.
 BECAUSE UNIT NUMBER ____RECEIVES A 421-A TAX ABATEMENT, IT WILL BE  RENT
 REGULATED UNTIL AT LEAST MM/DD/YYYY.
 CONSTRUCTION  COMMENCED  ON  YOUR  BUILDING,  LOCATED  AT ADDRESS ____ON
 MM/DD/YYYY.
 CONSTRUCTION WAS COMPLETED ON MM/DD/YYYY.
 ON (MM/DD/YYYY SPECIFIC TO TENANT), YOUR LANDLORD CAN BEGIN TO  INCREASE
 THE RENT FOR UNIT NUMBER BY 2.2% EACH YEAR.
 THE  421-A  BENEFITS  FOR  UNIT NUMBER EXPIRE ON (MM/DD/YYYY). AFTER THE
 EXPIRATION OF THE 421-A TAX ABATEMENT, YOUR UNIT WILL ___ (EITHER REMAIN
 RENT-STABILIZED FOR THE DURATION OF  YOUR  TENANCY  OR  CONTINUE  TO  BE
 PROTECTED DUE TO ADDITIONAL PROGRAMS OUTLINED BELOW).
 UNIT  NUMBER ALSO RECEIVES (LIST ANY OTHER CITY, STATE, FEDERAL AFFORDA-
 BILITY PROGRAM) AND (THE  IMPACT  THAT  HAS  ON  THE  UNIT'S  CONTINUING
 AFFORDABILITY, THE DATE ON WHICH THOSE BENEFITS EXPIRE AND THE IMPACT OF
 THE EXPIRATION OF THOSE BENEFITS ON THE UNIT).
 IF  YOU  BELIEVE  THAT ANY OF THE INFORMATION CONTAINED IN THIS RIDER IS
 INCORRECT, CONTACT NEW YORK STATE HOMES AND COMMUNITY RENEWAL BY CALLING
 (833) 499-0343 OR VISITING HTTPS://HCR.NY.GOV/  OR  THE  NEW  YORK  CITY
 DEPARTMENT   OF   HOUSING   PRESERVATION  BY  CALLING  311  OR  VISITING
 HTTPS://WWW1.NYC.GOV/SITE/HPD/INDEX.PAGE."
   § 4. This act shall take effect immediately.