Senate Bill S9772

                                 
BILL NUMBER: S9772

SPONSOR: SEPULVEDA
 
TITLE OF BILL:

An act to amend the New York city civil court act, in relation to
actions and proceedings seeking an abatement of rent based on violations
of the housing maintenance code or the warranty of habitability and in
relation to the number of housing judges assigned to certain actions

 
PURPOSE OR GENERAL IDEA OF BILL:

Authorizes tenants to bring a proceeding seeking an abatement of rent
based on a violation of the housing maintenance code, building code,
health code, or applicable housing standards.

 
SUMMARY OF PROVISIONS:

Section 1 amends the New York city civil court act to permit tenants to
bring a proceeding for an abatement of rent based on a violation of the
housing maintenance code, building code, health code, or applicable
housing standards.
              

Section 2 specifies that a minimum of two judges will be assigned to the
HP part in every borough except Staten Island. On Staten Island, one
judge shall be assigned to the HP Part two days a week.

Section 3 establishes the effective date.

 
JUSTIFICATION:

In 1975, New York enacted Section 235-b of the Real Property Law,
providing that every residential lease contained an implied warranty of
habitability. In other words, a landlord had to ensure that rented and
common spaces were "fit for human habitation," and did not threaten the
"life, health or safety" of tenants. A tenant can obtain damages for
breach of warranty of habitability, which typically comes in the form of
a rent abatement calculated based on the "difference between the rent
reserved under the lease and the value of the premises during the period
of the breach" (Clarendon Gardens, LLC v. Wilson, 2024).

The primary way market-rate tenants can obtain a rent abatement for a
breach of warranty of habitability is through withholding rent and rais-
ing it as a defense and a counterclaim in a nonpayment case.  Unfortu-
nately, this is an extremely risky and unreliable way for tenants to
seek compensation for unsafe living conditions. A recent study found
that "a tenant with a meritorious warranty of habitability claim had
between a 1.8 and 2.4 percent chance of receiving a rent abatement
generally, and a 9 percent chance if there were open code violations in
the unit." In addition, "tenants with meritorious warranty claims were
statistically just as likely to receive a possessory judgement as
tenants without warranty claims" ("The Limits of Good Law: A Study of
Housing Court Outcome," 2019).  If a market-rate tenant wishes to
receive a rent abatement, they risk eviction.

While tenants can initiate a Housing Part (HP) Action in Housing Court,
an HP action is limited to correcting violations or building conditions
and cannot award tenants damages or abatements. As one court put it, an
HP proceeding is not the proper forum to assert claims for breach of
warranty of habitability because a "Housing Part proceeding is brought .
. . for the limited purpose of enforcing provisions of the Multiple
Dwelling Law, the Building and Health codes and the Housing Maintenance
Code, to correction violations and conditions" (Dominguez v. Zinar,
2009). The only remedies tenants may seek in an HP proceeding are
repairs and civil penalties payable exclusively to the Department of
Housing Preservation and Development (Amsterdam v. Goldstick, 1987).

While tenants could pursue damages in New York Supreme Court or Small
Claims Court, the HP Part is already where a tenant would have to bring
their claim for repairs. The HP Part is also already specially designed
to accommodate unrepresented litigants through less burdensome pleading
and service requirements. Additionally, if tenants were already seeking
repairs in an HP action, they would have to initiate a separate case in
Supreme Court to seek a rent abatement. This is extraordinarily onerous
for tenants living in substandard housing.

Unfortunately, tenants with cases pending in the HP Part are subject to
months-long delays, while each borough (excluding Staten Island) only
has one judge assigned to hear HP cases. By allowing tenants to sue for
rent abatements in Housing Court and requiring a minimum of judges to be
assigned to the HP Part, this bill would ensure tenants living in
substandard, unsafe conditions can get the repairs and damages they are
owed in a timely manner. It would also uphold Housing Court's original,
statutory mission to provide "effective enforcement of state and local
laws for the establishment and maintenance of proper housing standards-
essential to the health, safety, welfare and reasonable comfort of the
citizens of the state" (Ch. 872 of the N.Y. Laws of 1972 § 1(a)).

 
PRIOR LEGISLATIVE HISTORY:

S.7633 of 2025 (Hoylman-Sigal): Passed Senate, Died in Assembly

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect 90 days after which it shall have become law.