NY State Senate Bill 2023-S5874

Senate Bill S5874

2023-2024 Legislative Session

Requires replacement cost fire insurance on multiple dwellings and use of insurance proceeds to replace such multiple dwellings

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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 03, 2024	referred to housing, construction and community development
Mar 20, 2023	referred to housing, construction and community development

2023-S5874 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Multiple Dwelling Law
Laws Affected:: Add §308-a, Mult Dwell L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S4606
2011-2012: S3398
2013-2014: S3256
2015-2016: S1435
2017-2018: S3414
2019-2020: S4595
2021-2022: S4792

2023-S5874 (ACTIVE) - Summary

Requires owner of a multiple dwelling to procure and maintain fire insurance on such multiple dwelling in the amount of the full cost to replace such multiple dwelling; requires owners of multiple dwellings to use insurance proceeds to replace such multiple dwellings; deems void provisions in other documents which are contrary to such insurance requirement; provides that failure to comply with such provisions shall constitute a misdemeanor

2023-S5874 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5874

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the multiple dwelling law, in relation to fire insurance
policies on occupied multiple dwellings

 
SUMMARY OF PROVISIONS:

Section 1: The multiple dwelling law is amended by adding a new section
308a.

Section 2: This act shall take effect on the first of November next
succeeding the date on which it shall have become a law and shall apply
to fire insurance contracts, sales contracts, mortgage indentures, leas-
es or other documents entered into on and after the effective date of
this act.

 
JUSTIFICATION:

In order to combat the epidemic of arson sweeping New York, legislation

is needed to make arson unprofitable, and also to help rebuild damaged
residential properties, but also insure that tenants are not thrown out
on the streets after such a tragedy. Currently, there is no requirement
that an owner of residential property provide any insurance whatsoever,
or if they have insurance, regulate how it is to be used.

 
LEGISLATIVE HISTORY:

2021-22: S4792 -Referred to Housing. Construction and Community Develop-
ment

2019-20: S.4595- Referred to Housing, Construction & Community Develop-
ment

2017-18: S.3414- Referred to Housing, Construction & community Develop-
ment

2015-16: S.1435-Died in Housing

2013-14: S.3256-Died in Housing

2011-12: S.3398-Died in Housing

2009-10: S.4606-Died in Housing

2008-07: S.3371-Died in Housing

2005-06: S.3469-Died in Housing

2003-04: S.2457-Died in Housing

2001-02: S.1183-Died in Housing

1999-00: S.474-Died in Housing

1997-98: S.1868-Died in Housing

1995-96: A.2095-Died in Housing

 
EFFECTIVE DATE:
This act shall take effect on the first of November next succeeding the
date on which it shall have become a law and shall apply to fire insur-
ance contracts, sales contracts, mortgage indentures, leases or other
documents entered into on and after the effective date of this act.

2023-S5874 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5874
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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, in relation to fire insurance
   policies on occupied multiple dwellings

   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
 section 308-a to read as follows:
   §  308-A. FIRE INSURANCE CONTRACTS REQUIRED; PROCEEDS THEREOF. 1.  ANY
 OWNER OF A MULTIPLE DWELLING MUST PROCURE A  POLICY  OF  FIRE  INSURANCE
 THEREON  AND  CONTINUE  THE  SAME  IN FULL FORCE AND EFFECT AT ALL TIMES
 DURING THE OCCUPANCY OF SUCH MULTIPLE DWELLING BY ONE OR MORE TENANTS AT
 A VALUE EQUIVALENT AT ALL TIMES TO THE FULL REPLACEMENT VALUE THEREOF.
   2. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,  THE  PROCEEDS  OF
 ANY  FIRE  INSURANCE  CONTRACT  ON  A MULTIPLE DWELLING SHALL BE USED TO
 RESTORE THE DAMAGED PROPERTY TO A HABITABLE CONDITION  AT  LEAST  EQUIV-
 ALENT TO THE CONDITION OF SUCH MULTIPLE DWELLING PRIOR TO THE LOSS.
   3. IF A MULTIPLE DWELLING IS TO BE OCCUPIED AS SUCH AFTER A LOSS REIM-
 BURSABLE  PURSUANT TO SUCH FIRE INSURANCE CONTRACT, ANY PERSON WHO WAS A
 TENANT THEREOF AT THE TIME OF THE  LOSS  AND  SHARES  NO  RESPONSIBILITY
 THEREFOR  SHALL  HAVE  THE  OPPORTUNITY TO CONTINUE HIS OR HER OCCUPANCY
 AFTER RESTORATION FOR THE DURATION OF HIS OR HER LEASE  UNDER  THE  SAME
 TERMS AND CONDITIONS AS BEFORE SAID LOSS.
   4.  ANY  PROVISION  IN  A SALES CONTRACT, MORTGAGE INDENTURE, LEASE OR
 OTHER DOCUMENT CONTRARY TO THE PROVISIONS OF THIS SECTION SHALL BE  VOID
 AS AGAINST PUBLIC POLICY.
   5.  ANY  FAILURE  ON  THE  PART  OF AN OWNER OF A MULTIPLE DWELLING TO
 COMPLY WITH THE PROVISIONS OF THIS SECTION SHALL CAUSE HIM OR HER TO  BE
 GUILTY OF A MISDEMEANOR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07451-01-3
 S. 5874                             2

 
   § 2. This act shall take effect on the first of November next succeed-
 ing the date on which it shall have become a law and shall apply to fire
 insurance  contracts,  sales  contracts,  mortgage indentures, leases or
 other documents entered into on and after the  effective  date  of  this
 act.

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