BILL NUMBER: S2134

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to requirements for a building owner to refuse to renew a lease
when the building is to be demolished

 
PURPOSE:

To restore the power of the State Division of Housing and Community
Renewal to ensure that building owners applying for permission to refuse
to renew rent stabilized tenants' leases in order to demolish buildings
and construct new ones are acting in good faith, have received all
required building permits, and have the funds needed to complete demoli-
tion and construction.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends 26-511 of the Administrative Code of the City of New
York to make changes to the requirements for building owners submitting
              

applications for permission to refuse to renew rent stabilized tenants'
leases due to demolition to DHCR. Owners must prove to the satisfaction
of DHCR that he or she intends in good faith to demolish each building
and construct a new one, have received all necessary demolition and new
building permits from the New York City Department of Buildings, and
have the financial ability to construct the proposed new building.

 
JUSTIFICATION:

A recent State Appellate Court Decision (First NY v DHCR), determined
that the Division of Housing and Community Renewal (DHCR) does not have
the ability to require landlords applying for permission not to renew
rent stabilized tenants' leases in order to demolish a building to show
what they intend to do with the property post-demolition and provide
proof of segregated funds to do the proposed work. The decision was
contrary to longstanding practices by DHCR and what many attorneys
believed was settled case law. The Appellate Court decision makes it
much easier for unscrupulous building owners to push stabilized tenants
out when they have no real intention of demolishing their buildings.
There has long been a problem of certain owners filing phony demolition
applications and this case exacerbates the situation. This bill protects
tenants by once again requiring owners to prove to DHCR that they intend
in good faith to demolish a building and construct a new one, have
received the necessary building permits, and have the funds to construct
a new building.

 
LEGISLATIVE HISTORY:

2023-24:S.2015B/A.6276A - Referred to Committee

 
FISCAL IMPLICATIONS:

To be Determined

 
EFFECTIVE DATE:
Immediately