S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8319
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               June 2, 2025
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation to enacting the "New York city small business rent stabiliza-
   tion act"

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York city small business rent stabilization act".
   §  2.  Title  22 of the administrative code of the city of New York is
 amended by adding a new chapter 15 to read as follows:
                                CHAPTER 15
                       COMMERCIAL RENT STABILIZATION
   § 22-1501 APPLICATION. THIS CHAPTER APPLIES TO ALL LEASES  AND  RENTAL
 AGREEMENTS  FOR  COMMERCIAL  SPACES  THAT  ARE RENEWED, RENEGOTIATED, OR
 ENTERED INTO ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE.
   § 22-1502 DEFINITIONS. AS USED IN THIS CHAPTER,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT REQUIRES OTHERWISE:
   A.  "ADMINISTERING AGENCY" SHALL MEAN ANY CITY AGENCY, OFFICE, DEPART-
 MENT, DIVISION, BUREAU OR INSTITUTION OF  GOVERNMENT,  THE  EXPENSES  OF
 WHICH  ARE PAID IN WHOLE OR IN PART FROM THE CITY TREASURY, AS THE MAYOR
 SHALL DESIGNATE OR ESTABLISH TO IMPLEMENT AND ENFORCE THE PROVISIONS  OF
 THIS CHAPTER.
   B. "AT-WILL TENANT" SHALL MEAN A TENANT, SUBTENANT, LESSEE, SUBLESSEE,
 OR  ANY  OTHER PERSONS LAWFULLY ENTITLED TO USE OR OCCUPY ANY COMMERCIAL
 PREMISES WITHOUT A WRITTEN LEASE OR OTHER RENTAL AGREEMENT, WHO HAS PAID
 RENT TO A LANDLORD FOR AT LEAST SIX MONTHS.
   C. "BOARD" SHALL MEAN THE COMMERCIAL RENT GUIDELINES BOARD ESTABLISHED
 BY SUBDIVISION A OF SECTION 22-1503 OF THIS CHAPTER.
   D. "CHAIN BUSINESS" SHALL MEAN AN ESTABLISHMENT  THAT  IS  PART  OF  A
 GROUP  OF  ESTABLISHMENTS  THAT SHARE A COMMON LANDLORD OR PRINCIPAL WHO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09129-03-5
              

 S. 8319                             2
 
 OWNS AT LEAST THIRTY PERCENT OF EACH ESTABLISHMENT WHERE SUCH ESTABLISH-
 MENTS:
   (1) ENGAGE IN THE SAME BUSINESS; OR
   (2) OPERATE PURSUANT TO A FRANCHISE AGREEMENT WITH THE SAME FRANCHISOR
 AS  DEFINED  IN  SECTION  SIX HUNDRED EIGHTY-ONE OF THE GENERAL BUSINESS
 LAW.
   E. "COMMERCIAL SPACE" SHALL MEAN A SPACE USED OR OCCUPIED FOR  NON-RE-
 SIDENTIAL  PURPOSES PURSUANT TO A VALID COMMERCIAL LEASE OR OTHER RENTAL
 AGREEMENT AND ANY SPACE THAT CAN BE SO USED PURSUANT  TO  LAW  OR  REGU-
 LATION.
   F. "COMMISSIONER" SHALL MEAN THE HEAD OF THE ADMINISTERING AGENCY.
   G.  "LANDLORD" SHALL MEAN ANY OWNER, LESSOR, SUBLESSOR OR OTHER PERSON
 ENTITLED TO RECEIVE RENT FOR THE USE  OR  OCCUPANCY  OF  ANY  COMMERCIAL
 PREMISES, OR AN AGENT THEREOF.
   H.  "PASS-ALONG" SHALL MEAN ANY TAXES, SEWER, WATER OR UTILITY FEE, OR
 OTHER OPERATING CHARGES APPORTIONED TO A TENANT IN CONNECTION  WITH  THE
 USE  OR  OCCUPANCY  OF  ANY  COMMERCIAL SPACE, BUT SHALL NOT INCLUDE ANY
 CHARGES THAT ARE INDIVIDUALLY METERED TO REFLECT THE TENANT'S  EXCLUSIVE
 USE OF SUCH SPACE, INCLUDING WATER, SEWER AND UTILITY FEES.
   I.  "RENT"  SHALL MEAN ANY CONSIDERATION, INCLUDING BUT NOT LIMITED TO
 PASS-ALONGS, RECEIVED BY THE LANDLORD IN  CONNECTION  WITH  THE  USE  OR
 OCCUPANCY OF ANY COMMERCIAL SPACE.
   J. "SERVICES" SHALL MEAN THOSE FACILITIES WHICH ENHANCE THE USE OF THE
 COMMERCIAL  PREMISES,  INCLUDING,  BUT  NOT LIMITED TO, REPAIRS, MAINTE-
 NANCE, PAINTING, HEAT, HOT AND COLD WATER, UTILITIES, ELEVATOR  SERVICE,
 SECURITY DEVICES AND PATROLS, FURNISHINGS, STORAGE, JANITORIAL AND LAND-
 SCAPING  SERVICES,  REFUSE REMOVAL, INSURANCE PROTECTION, PARKING SPACES
 AND FACILITIES IN COMMON AREAS OF THE BUILDING OR PARCEL  IN  WHICH  THE
 RENTAL UNIT IS LOCATED.
   K.  "TENANT" SHALL MEAN A TENANT, SUBTENANT, LESSEE, SUBLESSEE, OR ANY
 OTHER PERSONS LAWFULLY ENTITLED TO USE OR OCCUPY  ANY  COMMERCIAL  PREM-
 ISES.
   §  22-1503  COMMERCIAL  RENT  GUIDELINES  BOARD.  A.  THERE SHALL BE A
 COMMERCIAL RENT GUIDELINES BOARD CONSISTING OF NINE MEMBERS APPOINTED BY
 THE MAYOR AS FOLLOWS:
   (1) ONE PUBLIC MEMBER TO SERVE AS THE CHAIRPERSON OF THE BOARD;
   (2) TWO MEMBERS REPRESENTING COMMERCIAL TENANTS WHICH  ARE  NOT  CHAIN
 BUSINESSES;
   (3)  TWO  MEMBERS  REPRESENTING  COMMERCIAL LANDLORDS, AT LEAST ONE OF
 WHOM SHALL BE A LANDLORD OWNING TEN OR FEWER COMMERCIAL SPACES; AND
   (4) FOUR ADDITIONAL PUBLIC MEMBERS, EACH OF WHOM  HAS  AT  LEAST  FIVE
 YEARS  OF  EXPERIENCE  IN  FINANCE, ECONOMICS, REAL PROPERTY MANAGEMENT,
 COMMUNITY ORGANIZING, OR COMMUNITY DEVELOPMENT, WHICH SHALL NOT  INCLUDE
 COMMERCIAL  LANDLORDS  OR  PERSONS WHO ARE EMPLOYED BY OR REPRESENTING A
 BUSINESS IMPROVEMENT DISTRICT. NO PUBLIC MEMBER OF THE BOARD MAY OWN  OR
 MANAGE  ANY COMMERCIAL RENTAL PROPERTY AFFECTED BY THE BOARD'S ORDERS OR
 BE AN OFFICER IN ANY ORGANIZATION REPRESENTING TENANTS OR OWNERS.
   B. THE MEMBERS OF THE BOARD, EXCEPT THE CHAIRPERSON, SHALL SERVE STAG-
 GERED  TERMS  OF  TWO  YEARS.  FOUR  MEMBERS  OF  THE  BOARD  ORIGINALLY
 APPOINTED,  COMPRISING  ONE  MEMBER  REPRESENTING  TENANTS,  ONE  MEMBER
 REPRESENTING LANDLORDS AND TWO PUBLIC MEMBERS, SHALL SERVE UNTIL JANUARY
 FIRST, TWO  THOUSAND  TWENTY-EIGHT.  THE  OTHER  MEMBERS  OF  THE  BOARD
 ORIGINALLY APPOINTED, EXCLUDING THE CHAIRPERSON, SHALL SERVE UNTIL JANU-
 ARY  FIRST,  TWO  THOUSAND  TWENTY-NINE.   THEREAFTER, ALL MEMBERS SHALL
 SERVE TWO-YEAR TERMS ON THE  BOARD  UNTIL  THEIR  SUCCESSORS  HAVE  BEEN
 S. 8319                             3
 
 APPOINTED  AND QUALIFIED, EXCEPT THE CHAIRPERSON, WHO SHALL SERVE AT THE
 PLEASURE OF THE MAYOR.
   C.  THE MAYOR SHALL FILL ANY VACANCY THAT MAY OCCUR IN THE SAME MANNER
 AS THE ORIGINAL APPOINTMENT. A MEMBER  OF  THE  BOARD,  OTHER  THAN  THE
 CHAIRPERSON,  MAY ONLY BE REMOVED BY THE MAYOR FOR CAUSE AFTER AN OPPOR-
 TUNITY TO BE HEARD IN PERSON OR BY COUNSEL,  IN  THE  MEMBER'S  DEFENSE,
 UPON AT LEAST TEN DAYS WRITTEN NOTICE.
   D.  THE  CHAIRPERSON  SHALL BE THE CHIEF ADMINISTRATIVE OFFICER OF THE
 BOARD AND SHALL HAVE THE AUTHORITY TO EMPLOY, ASSIGN AND  SUPERVISE  THE
 MEMBERS  OF  THE BOARD AND ENTER INTO CONTRACTS FOR CONSULTANT SERVICES.
 THE COMMISSIONER SHALL COOPERATE WITH THE BOARD AND MAY ASSIGN PERSONNEL
 AND PERFORM SUCH SERVICES IN CONNECTION WITH THE DUTIES OF THE BOARD  AS
 MAY REASONABLY BE REQUIRED BY THE CHAIRPERSON.
   E.  THE  MEMBERS OF THE BOARD SHALL BE COMPENSATED ON A PER DIEM BASIS
 FOR NO MORE THAN FIFTY DAYS PER YEAR AT A RATE TO BE DETERMINED  BY  THE
 MAYOR,  AND THE CHAIRPERSON SHALL BE COMPENSATED ON A PER DIEM BASIS FOR
 NO MORE THAN ONE HUNDRED DAYS PER YEAR AT A RATE TO BE DETERMINED BY THE
 MAYOR.
   F. THE BOARD SHALL ESTABLISH INITIAL GUIDELINES  FOR  COMMERCIAL  RENT
 ADJUSTMENTS BY THE FIRST OF JULY NEXT SUCCEEDING APPOINTMENT OF THE LAST
 MEMBER  OF  THE  BOARD.    THEREAFTER,  THE BOARD SHALL ESTABLISH ANNUAL
 GUIDELINES TO BE FILED IN ACCORDANCE WITH SUBDIVISION G OF THIS SECTION.
 IN DETERMINING WHETHER TO ADJUST RENTS FOR COMMERCIAL SPACES SUBJECT  TO
 THE  COMMERCIAL RENT STABILIZATION PROVISIONS OF THIS CHAPTER, THE BOARD
 SHALL CONSIDER, AMONG OTHER THINGS:
   (1) THE ECONOMIC CONDITION OF THE COMMERCIAL REAL ESTATE  INDUSTRY  IN
 THE COMMUNITY BOARD DISTRICT, INCLUDING SUCH FACTORS AS:
   (I) COMMERCIAL REAL ESTATE TAXES AND SEWER AND WATER RATES;
   (II)  GROSS OPERATING AND MAINTENANCE COSTS, INCLUDING BUT NOT LIMITED
 TO INSURANCE RATES, GOVERNMENTAL FEES, FUEL AND LABOR COSTS;
   (III) COSTS AND AVAILABILITY OF FINANCING, INCLUDING  EFFECTIVE  RATES
 OF INTEREST; AND
   (IV)  THE  OVERALL  SUPPLY  OF  COMMERCIAL  SPACES AND OVERALL VACANCY
 RATES;
   (2) RELEVANT DATA FROM THE CURRENT  AND  PROJECTED  MARKET  VALUES  OF
 COMMERCIAL RENTALS IN THE COMMUNITY BOARD DISTRICT;
   (3)  THE SOCIOECONOMIC AND DEMOGRAPHIC CHANGES IN EACH COMMUNITY BOARD
 DISTRICT BASED ON THE MOST RECENT  AVAILABLE  DATA,  INCLUDING  BUT  NOT
 LIMITED TO CHANGES IN:
   (I) THE MEDIAN INCOME LEVEL;
   (II) EDUCATION;
   (III) RACE;
   (IV) ETHNICITY; AND
   (V) HOME OWNERSHIP; AND
   (4) ANY OTHER RELEVANT DATA AVAILABLE TO THE BOARD.
   G.  NOT  LATER THAN JULY FIRST OF EACH YEAR, THE BOARD SHALL FILE WITH
 THE CITY CLERK ITS GUIDELINES FOR THE PRECEDING CALENDAR YEAR, AND SHALL
 ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXIMUM RATE OR RATES OF
 RENT ADJUSTMENT, IF ANY,  FOR  ALL  COMMERCIAL  SPACES  SUBJECT  TO  THE
 PROVISIONS  OF THIS CHAPTER AUTHORIZED FOR LEASES OR OTHER RENTAL AGREE-
 MENTS COMMENCING ON THE FIRST  OF  OCTOBER  NEXT  SUCCEEDING  OR  WITHIN
 TWELVE  MONTHS  THEREAFTER.    SUCH  GUIDELINES  AND  STATEMENT SHALL BE
 PUBLISHED IN THE CITY RECORD.
   H. PRIOR TO THE ANNUAL ADJUSTMENT OF THE LEVEL OF RENTS  PROVIDED  FOR
 UNDER  SUBDIVISION  F OF THIS SECTION, THE BOARD SHALL HOLD AT LEAST TWO
 PUBLIC HEARINGS FOR THE PURPOSE OF COLLECTING  INFORMATION  RELATING  TO
 S. 8319                             4
 
 ALL  FACTORS  SET  FORTH IN SUBDIVISION F OF THIS SECTION, AND ANY OTHER
 RELEVANT INFORMATION AS MAY BE NECESSARY  FOR  ESTABLISHING  THE  ANNUAL
 ADJUSTMENT  GUIDELINES. THE BOARD SHALL PROVIDE NOTICE OF THE DATE, TIME
 AND LOCATION AND A SUMMARY OF THE SUBJECT MATTER OF THE PUBLIC HEARINGS,
 TO  BE PUBLISHED IN THE CITY RECORD DAILY FOR THE PERIOD BEGINNING EIGHT
 DAYS PRIOR TO THE HEARING DATE, AND AT LEAST ONCE IN ONE OR MORE NEWSPA-
 PERS OF GENERAL CIRCULATION AT LEAST EIGHT  DAYS  IMMEDIATELY  PRECEDING
 SUCH HEARING DATE.
   I. MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE THAN
 ONCE ANNUALLY FOR ANY COMMERCIAL SPACE SUBJECT TO THE PROVISIONS OF THIS
 CHAPTER. ONCE ESTABLISHED, NO SUCH RATE SHALL, WITHIN THE ONE-YEAR PERI-
 OD,  BE  ADJUSTED  BY  ANY  SURCHARGE, SUPPLEMENTARY ADJUSTMENT OR OTHER
 MODIFICATION EXCEPT AS PROVIDED IN SECTION 22-1508 OF THIS CHAPTER.
   J. THE ADMINISTERING AGENCY SHALL PUBLISH A FORM LEASE REQUIRED TO  BE
 USED BY LANDLORDS IN ESTABLISHING NEW TENANCIES AFTER THE EFFECTIVE DATE
 OF THIS CHAPTER.
   §  22-1504 STABILIZATION PROVISIONS. A. UPON EXECUTION OR RENEWAL OF A
 LEASE FOR COMMERCIAL SPACE, THE ANNUAL RENT CHARGED FOR  THE  NEW  LEASE
 TERM  SHALL  NOT  EXCEED THE INITIAL LEGAL REGULATED RENT OR LEGAL REGU-
 LATED RENT ADJUSTED PURSUANT TO SECTION 22-1508 OF  THIS  CHAPTER  UNTIL
 SUCH TIME AS A DIFFERENT LEGAL REGULATED RENT SHALL BE AUTHORIZED PURSU-
 ANT TO GUIDELINES ADOPTED BY THE BOARD ESTABLISHED UNDER SECTION 22-1503
 OF  THIS  CHAPTER. NO LANDLORD SUBJECT TO THE PROVISIONS OF THIS CHAPTER
 SHALL CHARGE OR COLLECT ANY RENT THAT EXCEEDS THE  INITIAL  LEGAL  REGU-
 LATED  RENT OR LEGAL REGULATED RENT ADJUSTED PURSUANT TO SECTION 22-1508
 OF THIS CHAPTER UNTIL SUCH TIME AS A DIFFERENT LEGAL REGULATED RENT  HAS
 BEEN  AUTHORIZED  PURSUANT  TO  GUIDELINES ADOPTED BY THE BOARD. FOR ANY
 LEASE EXCEEDING ONE YEAR, THE RENT CHARGED FOR ANY SUBSEQUENT YEAR SHALL
 NOT EXCEED THE LEGAL REGULATED RENT AS AUTHORIZED PURSUANT TO  THE  MOST
 RECENT  GUIDELINES  ADOPTED  BY  THE  BOARD. IF THE RENT CHARGED FOR THE
 FIRST YEAR OF THE NEW LEASE IS LESS THAN  THE  INITIAL  LEGAL  REGULATED
 RENT OR THE LEGAL REGULATED RENT ADJUSTED PURSUANT TO SECTION 22-1508 OF
 THIS  CHAPTER, THE RENT CHARGED FOR ANY SUBSEQUENT YEAR SHALL NOT EXCEED
 THE FIRST YEAR'S RENT ADJUSTED BY THE RATE AUTHORIZED  PURSUANT  TO  THE
 MOST RECENT GUIDELINES ADOPTED BY THE BOARD.
   B.  THE  INITIAL  REGULATED RENT FOR A COMMERCIAL SPACE SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER IS THE RENT CHARGED IN  THE  LEASE  OR  OTHER
 RENTAL AGREEMENT FOR SUCH COMMERCIAL SPACE IN EFFECT SIXTY DAYS PRIOR TO
 THE EFFECTIVE DATE OF THIS CHAPTER.
   C.  THE  INITIAL  REGULATED RENT FOR A COMMERCIAL SPACE SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER, THAT IS NOT SUBJECT  TO  A  LEASE  OR  OTHER
 RENTAL  AGREEMENT  ON  THE  EFFECTIVE DATE OF THIS CHAPTER, SHALL BE THE
 RENT CHARGED IN THE LAST  LEASE  OR  OTHER  RENTAL  AGREEMENT  FOR  SUCH
 COMMERCIAL  SPACE IN EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS CHAPTER.
 HOWEVER, IF A CLAIM ALLEGING COMMERCIAL TENANT  HARASSMENT  PURSUANT  TO
 CHAPTER NINE OF THIS TITLE IS BROUGHT AGAINST A LANDLORD BY THE PREVIOUS
 TENANT  AS THE MEANS BY WHICH THE VACANCY WAS EFFECTED AND SUCH PREVIOUS
 TENANT'S CLAIM IS UPHELD BY A  COURT  OF  COMPETENT  JURISDICTION,  SUCH
 LANDLORD  SHALL  BE  LIABLE FOR DAMAGES UP TO TEN TIMES THE PROPOSED NEW
 LEASE'S MONTHLY RENT OR FIFTY THOUSAND DOLLARS, WHICHEVER IS GREATER, TO
 BE PAYABLE TO THE PREVIOUS TENANT, IN ADDITION TO CONSEQUENTIAL  DAMAGES
 AND ANY OTHER REMEDY AVAILABLE AT LAW OR EQUITY.
   D.  UPON A FINDING OF COMMERCIAL TENANT HARASSMENT PURSUANT TO CHAPTER
 NINE OF THIS TITLE, THE RENT FOR THE NEW TENANT SHALL BE NO HIGHER  THAN
 THE RENT THAT COULD HAVE BEEN CHARGED TO THE PREVIOUS TENANT PURSUANT TO
 SUBDIVISION  A  OF THIS SECTION, RETROACTIVE TO THE BEGINNING OF THE NEW
 S. 8319                             5
 
 TENANCY. ALL OTHER TERMS AND CONDITIONS OF THE LEASE  SHALL  CONFORM  TO
 THE PROVISIONS OF SUBDIVISION A OF THIS SECTION.
   E.  IF  A  TENANT  IS  AN AT-WILL TENANT, SUCH TENANT HAS THE RIGHT TO
 REQUEST A WRITTEN LEASE AGREEMENT THAT SHALL CONFORM TO  THE  PROVISIONS
 OF SUBDIVISION A OF THIS SECTION AND BE A MONTHLY RENT EQUIVALENT TO THE
 AMOUNT  SUCH TENANT IS PAYING AT THE TIME OF SUCH REQUEST.  THE LANDLORD
 OF AN AT-WILL TENANT SHALL PROVIDE A WRITTEN LEASE OFFER  WITHIN  NINETY
 DAYS  OF  RECEIVING SUCH A REQUEST FOR A WRITTEN LEASE. A LANDLORD SHALL
 ONLY BE ABLE TO REFUSE TO PROVIDE A WRITTEN LEASE OR  EVICT  AN  AT-WILL
 TENANT  BASED  ON  THE PROVISIONS UNDER SECTION 22-1510 OF THIS CHAPTER,
 EXCEPT FOR THE PROVISION SET FORTH IN PARAGRAPH TWO OF SUCH SUBDIVISION.
   § 22-1505 ENFORCEMENT AND PROCEDURES. A. SUBJECT TO THE CONDITIONS AND
 LIMITATIONS OF THIS SECTION, ANY LANDLORD WHO, UPON THE COMPLAINT  OF  A
 TENANT,  IS FOUND BY THE COMMISSIONER, AFTER A REASONABLE OPPORTUNITY TO
 BE HEARD, TO HAVE COLLECTED AN OVERCHARGE ABOVE THE RENT AUTHORIZED  FOR
 A  COMMERCIAL SPACE SUBJECT TO THE PROVISIONS OF THIS CHAPTER, IS LIABLE
 TO SUCH TENANT FOR A PENALTY EQUAL TO THREE TIMES  THE  AMOUNT  OF  SUCH
 OVERCHARGE.  IF  THE  LANDLORD  ESTABLISHES,  BY  A PREPONDERANCE OF THE
 EVIDENCE, THAT THE OVERCHARGE WAS NOT INTENTIONAL, THE PENALTY SHALL  BE
 THE  AMOUNT  OF  THE  OVERCHARGE PLUS INTEREST ASSESSED FROM THE INITIAL
 DATE OF SUCH OVERCHARGE. AFTER A COMPLAINT OF RENT OVERCHARGE  HAS  BEEN
 FILED  AND  SERVED  ON  A LANDLORD, THE VOLUNTARY ADJUSTMENT OF THE RENT
 AND/OR THE VOLUNTARY TENDER OF A REFUND OF RENT OVERCHARGES SHALL NOT BE
 CONSIDERED BY THE COMMISSIONER AS EVIDENCE THAT SUCH OVERCHARGE WAS  NOT
 WILLFUL.
   B.  THE LEGAL REGULATED RENT FOR PURPOSES OF DETERMINING AN OVERCHARGE
 IS THE RENT INDICATED IN THE ANNUAL  REGISTRATION  STATEMENT  FILED  AND
 SERVED  UPON  THE TENANT SIX YEARS PRIOR TO THE MOST RECENT REGISTRATION
 STATEMENT, OR, IF MORE RECENTLY FILED, THE INITIAL  REGISTRATION  STATE-
 MENT  PLUS,  FOR  EACH CASE, ANY SUBSEQUENT LAWFUL INCREASES AND ADJUST-
 MENTS. THE COMMISSIONER, IN INVESTIGATING COMPLAINTS OF  OVERCHARGE  AND
 IN  DETERMINING  LEGAL REGULATED RENT, SHALL CONSIDER ALL AVAILABLE RENT
 HISTORY WHICH IS REASONABLY NECESSARY TO MAKE SUCH DETERMINATIONS. AS TO
 COMPLAINTS FILED WITHIN NINETY DAYS OF THE  INITIAL  REGISTRATION  OF  A
 COMMERCIAL  SPACE,  THE  LEGAL  REGULATED  RENT IS DEEMED TO BE THE RENT
 CHARGED ON THE DATE SIX YEARS PRIOR TO THE DATE OF THE INITIAL REGISTRA-
 TION OF THE COMMERCIAL SPACE OR, IF THE COMMERCIAL SPACE WAS SUBJECT  TO
 THIS  CHAPTER  FOR LESS THAN SIX YEARS, THE INITIAL LEGAL REGULATED RENT
 PLUS, IN EACH CASE, ANY LAWFUL INCREASES AND ADJUSTMENTS. WHERE THE RENT
 CHARGED ON THE DATE SIX YEARS PRIOR TO THE DATE OF THE INITIAL REGISTRA-
 TION OF THE COMMERCIAL SPACE CANNOT BE ESTABLISHED, SUCH RENT  SHALL  BE
 ESTABLISHED  BY  THE  COMMISSIONER  BASED  ON,  AMONG  OTHER THINGS, THE
 FACTORS SET FORTH IN PARAGRAPH ONE OF SUBDIVISION F OF  SECTION  22-1503
 OF THIS CHAPTER.
   C. COMPLAINTS UNDER THIS SECTION MAY BE FILED WITH THE COMMISSIONER AT
 ANY  TIME, HOWEVER ANY RECOVERY OF OVERCHARGE PENALTIES SHALL BE LIMITED
 TO THE SIX YEARS PRECEDING THE COMPLAINT.
   D. IN ADDITION TO APPLICABLE PENALTIES, A LANDLORD FOUND TO HAVE OVER-
 CHARGED A TENANT MAY BE ASSESSED THE  REASONABLE  COSTS  AND  ATTORNEYS'
 FEES  OF  ANY NECESSARY PROCEEDING AND INTEREST FROM THE INITIAL DATE OF
 THE OVERCHARGE AT THE RATE OF INTEREST PAYABLE ON A JUDGMENT PURSUANT TO
 SECTION FIVE THOUSAND FOUR OF THE CIVIL PRACTICE LAW AND RULES.
   E. A TENANT MAY, UPON THE EXPIRATION OF THE PERIOD IN WHICH THE  LAND-
 LORD MAY INSTITUTE A PROCEEDING PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE
 CIVIL  PRACTICE  LAW AND RULES, FILE AND ENFORCE AN ORDER OF THE COMMIS-
 SIONER AWARDING PENALTIES IN THE SAME MANNER AS A JUDGMENT.
 S. 8319                             6

   F. THE COMMISSIONER SHALL PROMULGATE ALL RULES AND REGULATIONS  NECES-
 SARY FOR THE IMPLEMENTATION OF THIS SECTION.
   §  22-1506  RENT  REGISTRATION. A. EACH LANDLORD OF A COMMERCIAL SPACE
 SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL REGISTER SUCH SPACE WITH
 THE ADMINISTERING AGENCY WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE
 DATE OF THIS CHAPTER AND ANNUALLY THEREAFTER USING FORMS  PRESCRIBED  BY
 THE  COMMISSIONER AND INCLUDING COPIES OF ALL LEASES AND RIDERS THERETO.
 THE INFORMATION TO BE PROVIDED ON SUCH FORMS SHALL INCLUDE  THE  FOLLOW-
 ING:
   (1)  THE  NAME  AND  ADDRESS  OF THE BUILDING OR GROUP OF BUILDINGS OR
 DEVELOPMENT IN WHICH SUCH COMMERCIAL SPACE IS  LOCATED  AND  THE  TENANT
 THEREOF;
   (2)  THE NUMBER OF COMMERCIAL SPACES BELONGING TO SUCH LANDLORD IN THE
 BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT IN WHICH  SUCH  COMMERCIAL
 SPACE IS LOCATED;
   (3)  THE  NUMBER  OF  COMMERCIAL  SPACES  IN SUCH BUILDING OR GROUP OF
 BUILDINGS OR DEVELOPMENT SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
   (4) THE RENT FOR THE COMMERCIAL  SPACE  CHARGED  ON  THE  REGISTRATION
 DATE; AND
   (5)  THE  SQUARE  FOOTAGE  OF  EACH COMMERCIAL SPACE NAMED PURSUANT TO
 PARAGRAPH ONE OF THIS SUBDIVISION.
   B. WITHIN THIRTY DAYS OF THE REGISTRATION OF A COMMERCIAL  SPACE,  THE
 ADMINISTERING AGENCY SHALL MAIL A COPY OF THE REGISTRATION FORMS SUBMIT-
 TED BY THE LANDLORD OF THE COMMERCIAL SPACE AND A COMPLETE RENTAL HISTO-
 RY  FOR  THE  UNIT  TO  EACH TENANT OF SUCH COMMERCIAL SPACE. THE RENTAL
 HISTORY SHALL INCLUDE, IF APPLICABLE, ANY OVERCHARGES, RENT ADJUSTMENTS,
 THE EFFECTIVE DATE OF ANY NEW AND COLLECTIBLE RENTS, AND ANY  TAX  BENE-
 FITS OR FINANCING PROGRAMS THAT APPLY TO THE BUILDING. THE ADMINISTERING
 AGENCY SHALL INFORM THE TENANT OF SUCH COMMERCIAL SPACE OF THE REGISTRA-
 TION  AND  OF  THE  TENANT'S  OPTION  TO  APPLY FOR AN ADJUSTMENT OF THE
 INITIAL RENT PURSUANT TO SECTION 22-1508 OF THIS CHAPTER  WITHIN  THIRTY
 DAYS OF SUCH REGISTRATION.
   C.  A LANDLORD OF A COMMERCIAL SPACE SUBJECT TO THE PROVISIONS OF THIS
 CHAPTER WHO FAILS TO REGISTER SUCH SPACE WITHIN ONE HUNDRED TWENTY  DAYS
 OF  THE  EFFECTIVE  DATE  OF  THIS CHAPTER SHALL BE IN VIOLATION OF THIS
 CHAPTER AND SUBJECT TO  A  CIVIL  PENALTY  FOR  EACH  MONTH  UNTIL  SUCH
 VIOLATION IS CORRECTED AS FOLLOWS:
   (1) FOR THE FIRST SIX-MONTH PERIOD, ONE HUNDRED DOLLARS PER MONTH;
   (2)  FOR  THE  SECOND  SIX-MONTH PERIOD, TWO HUNDRED FIFTY DOLLARS PER
 MONTH;
   (3) FOR THE THIRD SIX-MONTH PERIOD, ONE THOUSAND  DOLLARS  PER  MONTH;
 AND
   (4) FOR THE FOURTH SIX-MONTH PERIOD AND FOR EACH MONTH THEREAFTER, TWO
 THOUSAND DOLLARS PER MONTH.
   D.  FOR A SECOND OR SUBSEQUENT VIOLATION OF THIS CHAPTER INVOLVING THE
 SAME UNIT, THE COMMISSIONER MAY IMPOSE AND RECOVER A CIVIL  PENALTY  FOR
 EACH MONTH UNTIL SUCH VIOLATION IS CORRECTED AS FOLLOWS:
   (1) FOR THE FIRST SIX-MONTH PERIOD, TWO HUNDRED DOLLARS PER MONTH;
   (2)  FOR  THE  SECOND SIX-MONTH PERIOD, FOUR HUNDRED FIFTY DOLLARS PER
 MONTH;
   (3) FOR THE THIRD SIX-MONTH PERIOD, TWO THOUSAND  DOLLARS  PER  MONTH;
 AND
   (4)  FOR  THE  FOURTH  SIX-MONTH PERIOD AND FOR EACH MONTH THEREAFTER,
 FOUR THOUSAND DOLLARS PER MONTH.
   E. IN ANY YEAR WHERE AN OWNER FAILS TO PROVIDE  A  COMPLETE,  ACCURATE
 REGISTRATION,  THE  OWNER  SHALL BE PROHIBITED FROM ANY INCREASES TO THE
 S. 8319                             7
 
 RENT FROM THE PREVIOUS REGISTERED LEASE UNTIL ALL MISSING  REGISTRATIONS
 ARE FILED AND FALSE REGISTRATIONS CORRECTED.
   §  22-1507  FEES.  A. THE DEPARTMENT OF FINANCE SHALL COLLECT FROM THE
 LANDLORD OF EACH COMMERCIAL SPACE REGISTERED PURSUANT TO SECTION 22-1506
 OF THIS CHAPTER AN ANNUAL FEE IN THE AMOUNT OF ONE HUNDRED  DOLLARS  FOR
 EACH  COMMERCIAL SPACE SUBJECT TO THIS CHAPTER, IN ORDER TO DEFRAY COSTS
 INCURRED IN ADMINISTERING THIS CHAPTER.
   B. FAILURE TO PAY THE FEE IMPOSED BY SUBDIVISION  A  OF  THIS  SECTION
 SHALL CONSTITUTE A CHARGE DUE TO THE CITY. ALL SUCH FEES DUE TO THE CITY
 CONSTITUTE  A  DEBT  RECOVERABLE  FROM  THE  LANDLORD  AND  THE CITY MAY
 COMMENCE AN ACTION OR PROCEEDING, FILE A LIEN UPON THE BUILDING OR  TAKE
 ANY OTHER LAWFUL ACTION FOR THE RECOVERY OF SUCH FEES.
   § 22-1508 APPLICATION FOR ADJUSTMENT OF INITIAL RENT.  NOTWITHSTANDING
 ANY  OTHER  PROVISION  OF THIS CHAPTER, A TENANT OR LANDLORD MAY, WITHIN
 SIXTY DAYS OF RECEIPT OF THE NOTICE OF REGISTRATION PURSUANT TO  SECTION
 22-1506  OF THIS CHAPTER, FILE WITH THE BOARD AN APPLICATION FOR ADJUST-
 MENT OF THE INITIAL LEGAL REGULATED RENT FOR SUCH COMMERCIAL SPACE.   IN
 THE EVENT OF SUCH AN APPLICATION, BOTH THE OWNER AND THE TENANT SHALL BE
 NOTIFIED  AND GIVEN A CHANCE TO RESPOND TO THE APPLICATION WITHIN THIRTY
 DAYS.  THE BOARD MAY ADJUST SUCH INITIAL LEGAL  REGULATED  RENT  UPON  A
 FINDING  THAT  THE  PRESENCE  OF  EXTRAORDINARY CIRCUMSTANCES MATERIALLY
 AFFECTING THE INITIAL LEGAL REGULATED RENT HAS RESULTED IN A RENT  WHICH
 IS  SUBSTANTIALLY  DIFFERENT  FROM THE RENTS GENERALLY PREVAILING IN THE
 SAME AREA FOR SUBSTANTIALLY SIMILAR COMMERCIAL SPACES.
   § 22-1509 MANNER OF SERVICE. ALL PAPERS AND NOTICES WHICH, PURSUANT TO
 THE TERMS OF SECTION 22-1510 OF THIS CHAPTER ARE REQUIRED TO BE  SERVED,
 SHALL  BE  SERVED  BY  A PROCESS SERVER, OR SHALL BE SENT BY FIRST-CLASS
 MAIL AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED OR BY ANY EXPRESS MAIL
 SERVICE.
   § 22-1510 RENTAL GUIDELINES. A. ALL LEASES OF  A  COMMERCIAL  PREMISES
 MAY  BE  RENEWED AT THE OPTION OF A TENANT WHO DID NOT LOSE THE RIGHT TO
 RENEW A LEASE UNDER THE GROUNDS  DESCRIBED  IN  SUBDIVISION  D  OF  THIS
 SECTION.  SUCH  LEASE RENEWALS SHALL BE FOR A MINIMUM TERM OF TEN YEARS,
 PROVIDED HOWEVER, THAT AT THE TENANT'S  OPTION,  AND  WITH  THE  WRITTEN
 APPROVAL  OF  THE LANDLORD, A LEASE OF SHORTER OR LONGER DURATION MAY BE
 SELECTED.
   B. NO PERIOD OF LEASE EXTENSION REQUIRED BY THIS CHAPTER SHALL  EXTEND
 BEYOND THE LANDLORD'S LAWFUL ABILITY TO RENT THE PREMISES TO THE TENANT,
 WHERE SUCH ABILITY IS LIMITED BY:
   (1) THE OBLIGATION TO RENT THE PREMISES TO A THIRD PARTY PURSUANT TO A
 BONA  FIDE  LEASE ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THIS CHAP-
 TER;
   (2) THE EXERCISE BY A THIRD PARTY OF A BONA FIDE OPTION  TO  RENT  THE
 PREMISES PROVIDED THAT SUCH OPTION WAS GIVEN PRIOR TO THE EFFECTIVE DATE
 OF THIS CHAPTER; OR
   (3) ANY OTHER LAWFUL REASON ARISING PRIOR TO SUCH EFFECTIVE DATE.
   C.  A TENANT SHALL LOSE THE RIGHT OF RENEWAL AND A LANDLORD MAY REFUSE
 TO RENEW A LEASE ONLY ON THE FOLLOWING GROUNDS:
   (1) THE TENANT HAS PERSISTENTLY DELAYED RENT PAYMENTS  WITHOUT  CAUSE.
 FOR THE PURPOSE OF THIS SUBDIVISION, "CAUSE" IS DEFINED AS THE WITHHOLD-
 ING  OF  RENTAL  PAYMENTS BY THE TENANT DUE TO THE ALLEGED VIOLATIONS OF
 THE RENTAL AGREEMENT BY THE LANDLORD. IN ORDER FOR THE  LANDLORD  TO  BE
 EXCUSED  FROM  RENEWAL ON THIS GROUND, THE LANDLORD MUST HAVE SERVED THE
 TENANT AT LEAST THREE PRIOR NOTICES DURING THE TERM  OF  THE  LEASE  FOR
 DEMAND OF PAYMENT WITHIN THIRTY DAYS, AND THEN SHOW THAT SUCH LESSEE HAS
 NOT  PAID  WITHIN  SUCH  THIRTY-DAY PERIOD. THE LANDLORD SHALL NOT SERVE
 S. 8319                             8
 
 SUCH NOTICE UNLESS THE RENT PAYMENT WAS IN  ARREARS  FOR  A  MINIMUM  OF
 FIFTEEN DAYS;
   (2)  THE TENANT USES THE COMMERCIAL PREMISES IN A MANNER SUBSTANTIALLY
 DIFFERENT FROM THAT DESCRIBED IN THE LEASE;
   (3) THE TENANT CONDUCTS OR PERMITS ANY FORM OF ILLEGAL ACTIVITY ON THE
 PREMISES;
   (4) THE TENANT HAS SUBSTANTIALLY BREACHED ANY  SUBSTANTIVE  OBLIGATION
 UNDER THE CURRENT LEASE AND HAS FAILED TO CURE SUCH BREACH WITHIN THIRTY
 DAYS FOLLOWING WRITTEN NOTICE TO CURE BY THE LANDLORD;
   (5) UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD INTENDS,
 IN  GOOD FAITH, TO DEMOLISH OR SUBSTANTIALLY RECONSTRUCT THE PREMISES OR
 A SUBSTANTIAL  PART  THEREOF,  OR  TO  CARRY  OUT  SUBSTANTIAL  WORK  OR
 CONSTRUCTION  ON  THE  COMMERCIAL  PREMISES  OR SUBSTANTIAL PART THEREOF
 WHICH THEY COULD NOT REASONABLY DO WITHOUT OBTAINING POSSESSION  OF  THE
 COMMERCIAL PREMISES. THE LANDLORD SHALL NOTIFY THE TENANT OF THEIR DECI-
 SION  TO REOCCUPY THE COMMERCIAL PREMISES AT LEAST ONE YEAR PRIOR TO THE
 TERMINATION OF THE LEASE. IN THE  EVENT  THAT  THE  LESSOR  FRAUDULENTLY
 INVOKES  THIS  JUSTIFICATION  FOR A REFUSAL TO RENEW A COMMERCIAL LEASE,
 THE DEFRAUDED TENANT MAY COLLECT TREBLE DAMAGES FOR ANY LOSS SUFFERED AS
 A RESULT OF SUCH ACTION;
   (6) THE CURRENT TENANCY WAS CREATED BY THE SUBLETTING OF THE PROPERTY,
 WHEREBY THE PRIME TENANT DID NOT NOTIFY THE LANDLORD BY  CERTIFIED  MAIL
 OF  THE  SUBTENANT'S EXISTENCE AND DID NOT OBTAIN THE WRITTEN CONSENT OF
 THE LANDLORD. THIS GROUND IS VOID IF THE LANDLORD AND TENANT HAD  AGREED
 IN THE LEASE TO ALLOW SUBLEASING RIGHTS WITHOUT THE CONSENT OF THE LAND-
 LORD  AND  ALL  OBLIGATIONS  OF  THE  PRIME TENANT ON THE ISSUE, WERE IN
 COMPLIANCE;
   (7) IT HAS BEEN DETERMINED BY THE ADMINISTERING AGENCY OR BY  A  CIVIL
 COURT  OF COMPETENT JURISDICTION THAT THE TENANT IS A GROSS AND PERSIST-
 ENT VIOLATOR OF NEW YORK CITY  TAX  LAWS,  OF  ANY  LICENSE  OBLIGATIONS
 RELATED  TO  THE  USE  OF THE PREMISES OR OF ANY LAWS OF THE CITY OF NEW
 YORK; OR
   (8) UPON THE TERMINATION OF THE CURRENT TENANCY, THE LANDLORD  INTENDS
 TO  OCCUPY  THE  RETAIL PREMISES IN ORDER TO CARRY OUT ITS OWN BUSINESS,
 WHICH CANNOT BE THE SAME TYPE OF BUSINESS THAT  THE  CURRENT  TENANT  IS
 OPERATING.    THE  LANDLORD SHALL NOTIFY THE TENANT OF THEIR DECISION TO
 REOCCUPY THE PREMISES AT LEAST ONE HUNDRED  EIGHTY  DAYS  PRIOR  TO  THE
 TERMINATION  OF  THE  LEASE. IN THE EVENT THAT THE LANDLORD FRAUDULENTLY
 INVOKES THIS JUSTIFICATION FOR A REFUSAL TO RENEW  A  COMMERCIAL  LEASE,
 THE DEFRAUDED TENANT MAY COLLECT TREBLE DAMAGES FOR ANY LOSS SUFFERED AS
 A RESULT OF SUCH ACTION.
   §  22-1511 RETALIATION. NO LANDLORD SHALL IN ANY WAY RETALIATE AGAINST
 ANY TENANT FOR THE TENANT'S ASSERTION OR EXERCISE OF  ANY  RIGHTS  UNDER
 THIS  CHAPTER.  ANY  SUCH RETALIATION MAY SUBJECT THE LANDLORD TO A SUIT
 FOR ACTUAL AND PUNITIVE DAMAGES, INJUNCTIVE RELIEF, AND ATTORNEYS' FEES.
   § 22-1512 WAIVER. NO PROVISION IN  ANY  LEASE,  RENTAL  AGREEMENT,  OR
 AGREEMENT  MADE  IN  CONNECTION THEREWITH WHICH WAIVES OR DIMINISHES ANY
 TENANT'S RIGHTS UNDER THIS CHAPTER IS VALID.
   § 22-1513 INCONSISTENCY WITH OTHER LAWS.  IF  ANY  PROVISION  OF  THIS
 CHAPTER IS INCONSISTENT WITH, IN CONFLICT WITH, OR CONTRARY TO ANY OTHER
 PROVISIONS  OF  LAW,  SUCH  PROVISION OF THIS CHAPTER SHALL PREVAIL OVER
 SUCH OTHER PROVISION.
   § 3. Severability. If any clause, sentence, paragraph, section or part
 of this act shall be adjudged by any court of competent jurisdiction  to
 be  invalid  and  after  exhaustion  of all further judicial review, the
 judgment shall not affect, impair or invalidate the  remainder  thereof,
 S. 8319                             9
 
 but  shall  be  confined in its operation to the clause, sentence, para-
 graph, section or part of this act directly involved in the  controversy
 in which the judgment shall have been rendered.
   §  4.  This  act shall take effect on the thirtieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.