Bill Text: NY A08281 | 2019-2020 | General Assembly | Introduced


Bill Title: Enacts the "Housing Stability and Tenant Protection act of 2019"; extends and makes certain provisions of law permanent relating to rent control and rent stabilization (Part A); repeals provisions of law relating to rent increases after vacancy of housing accommodations (Part B); relates to vacancy of certain housing accommodations (Part C); relates to vacancies in certain housing accommodations and repeals various provisions of law relating to vacancy decontrol (Part D); relates to regulation of rents (Part E); relates to investigation of rent overcharge complaints (Part F); establishes the "statewide tenant protection act of 2019"; expands rent and eviction protections statewide (Part G); relates to rent adjustments and prohibition of fuel pass-along charges (Part H); relates to recovery of certain housing accommodations (Part I); relates to not-for-profits use of certain residential dwellings (Part J); relates to the temporary increase in rent in certain cases (Part K); enacts the "rent regulation reporting act of 2019" (Part L); enacts the "statewide housing security and tenant protection act of 2019" (Part M); relates to conversions to cooperative or condominium ownership in New York city (Part N); and relates to the duties and responsibilities of manufactured home park owners and residents (Part O).

Spectrum: Partisan Bill (Democrat 67-0)

Status: (Introduced) 2019-06-14 - substituted by s6458 [A08281 Detail]

Download: New_York-2019-A08281-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

            S. 6458                                                  A. 8281

                               2019-2020 Regular Sessions

                SENATE - ASSEMBLY

                                      June 11, 2019
                                       ___________

        IN  SENATE  --  Introduced  by  Sens.  STEWART-COUSINS, KAVANAGH, MYRIE,
          GIANARIS, SALAZAR, SERRANO, KRUEGER, BAILEY,  RAMOS,  PARKER  --  read
          twice  and  ordered  printed,  and when printed to be committed to the
          Committee on Rules

        IN ASSEMBLY -- Introduced by  M.  of  A.  HEASTIE,  CYMBROWITZ,  HUNTER,
          DINOWITZ,  O'DONNELL,  L. ROSENTHAL,  THIELE,  BRONSON, RYAN, BARRETT,
          MOSLEY, PICHARDO, BARRON, JOYNER, RICHARDSON,  NIOU,  EPSTEIN,  ROMEO,
          GOTTFRIED,  LENTOL,  WEINSTEIN,  NOLAN,  COOK,  GLICK,  AUBRY,  PERRY,
          ARROYO, COLTON,  PEOPLES-STOKES,  TITUS,  BENEDETTO,  HEVESI,  JAFFEE,
          DenDEKKER,   CRESPO,  M. L. MILLER,  WEPRIN,  QUART,  SOLAGES,  STECK,
          BICHOTTE, BLAKE, DILAN, SEAWRIGHT, SIMON, WALKER, CARROLL, DE LA ROSA,
          D. ROSENTHAL, TAYLOR,  CRUZ,  FERNANDEZ,  FRONTUS,  JACOBSON,  RAYNOR,
          REYES, SAYEGH -- read once and referred to the Committee on Housing

        AN  ACT  to amend chapter 576 of the laws of 1974 amending the emergency
          housing rent control law relating to the control of and  stabilization
          of  rent  in  certain  cases,  the emergency housing rent control law,
          chapter 329 of the laws of 1963 amending the  emergency  housing  rent
          control  law  relating  to  recontrol of rents in Albany, and the rent
          regulation reform act of 1997, in relation to making  such  provisions
          permanent;  to  amend  chapter  555  of  the laws of 1982 amending the
          general business law and the administrative code of the  city  of  New
          York  relating to conversion of residential property to cooperative or
          condominium ownership in the city of New York, chapter 402 of the laws
          of 1983 amending the general business law relating  to  conversion  of
          rental residential property to cooperative or condominium ownership in
          certain  municipalities  in  the  counties  of Nassau, Westchester and
          Rockland, in relation to making such provisions permanent (Part A); to
          repeal certain provisions of the administrative code of  the  city  of
          New  York,  the  emergency  tenant protection act of nineteen seventy-
          four, the emergency housing rent control law and the  local  emergency
          rent  control act, relating to rent increases after vacancy of a hous-
          ing accommodation (Part B); to amend the administrative  code  of  the
          city  of  New York and the emergency tenant protection act of nineteen

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11905-07-9

        S. 6458                             2                            A. 8281

          seventy-four, in relation to vacancy of certain housing accommodations
          and to amend the emergency tenant protection act of nineteen  seventy-
          four  and the administrative code of the city of New York, in relation
          to  prohibiting  a county rent guidelines board from establishing rent
          adjustments for class A dwelling units based on certain considerations
          (Part C); to amend the emergency tenant  protection  act  of  nineteen
          seventy-four,  in  relation  to  vacancies in certain housing accommo-
          dations; and to repeal paragraphs  12  and  13  of  subdivision  a  of
          section  5  and section 5-a of section 4 of chapter 576 of the laws of
          1974 constituting the emergency  tenant  protection  act  of  nineteen
          seventy-four,  paragraph  (n) of subdivision 2 of section 2 of chapter
          274 of the laws of  1946,  constituting  the  emergency  housing  rent
          control law, and sections 26-504.1, 26-504.2 and 26-504.3 and subpara-
          graph  (k)  of  paragraph  2 of subdivision e of section 26-403 of the
          administrative code of the city  of  New  York,  relating  to  vacancy
          decontrol  (Part  D);  to amend the emergency tenant protection act of
          nineteen seventy-four and the administrative code of the city  of  New
          York,  in  relation  to the regulation of rents (Part E); to amend the
          emergency tenant protection act of nineteen seventy-four, the adminis-
          trative code of the city of New York and the civil  practice  law  and
          rules,  in  relation  to  investigation  of rent overcharge complaints
          (Part F); to establish the "statewide tenant protection act of  2019";
          and  to amend the emergency tenant protection act of nineteen seventy-
          four, in relation to expanding rent and eviction protections statewide
          (Part G); to amend the administrative code of the city of New York and
          the emergency housing rent control law, in relation to the  establish-
          ment  of  rent adjustments and prohibition of fuel pass-along charges;
          and to repeal certain provisions of the  administrative  code  of  the
          city  of  New York relating thereto (Part H); to amend the administra-
          tive code of the city of New York, the emergency tenant protection act
          of nineteen seventy-four and the emergency housing rent  control  law,
          in  relation  to recovery of certain housing accommodations by a land-
          lord (Part I); to amend the emergency tenant protection act  of  nine-
          teen  seventy-four,  in  relation  to  not-for-profits' use of certain
          residential  dwellings  (Part  J);  to  amend  the  emergency   tenant
          protection  act  of  nineteen seventy-four, the emergency housing rent
          control law, and the administrative code of the city of New  York,  in
          relation to a temporary increase in rent in certain cases (Part K); to
          amend  the public housing law, in relation to enacting the "rent regu-
          lation reporting act of 2019" (Part L); to  amend  the  real  property
          law,  the real property actions and proceedings law, the general obli-
          gations law and the judiciary law, in relation to enacting the "state-
          wide housing security and tenant protection act of 2019";  establishes
          the New York state temporary commission on housing security and tenant
          protection;  and  to  repeal  certain  provisions of the real property
          actions and proceedings law relating thereto (Part M);  to  amend  the
          general  business  law,  in  relation to conversions to cooperative or
          condominium ownership in the city of New York (Part N); and  to  amend
          the  real property law, in relation to the duties and responsibilities
          of manufactured home park owners and residents (Part O)

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

        S. 6458                             3                            A. 8281

     1    Section  1.  This  act enacts into law major components of legislation
     2  relating to rent regulation and tenant protection.   Each  component  is
     3  wholly  contained  within  a  Part  identified as Parts A through O. The
     4  effective date for each particular provision contained within such  Part
     5  is  set  forth  in  the  last section of such Part. Any provision in any
     6  section contained within a Part, including the  effective  date  of  the
     7  Part,  which  makes a reference to a section "of this act", when used in
     8  connection with that particular component, shall be deemed to  mean  and
     9  refer  to  the  corresponding  section of the Part in which it is found.
    10  Section three of this act sets forth the general effective date of  this
    11  act.

    12                                   PART A

    13    Section  1.  Short  title. This act shall be known and may be cited as
    14  the "Housing Stability and Tenant Protection Act of 2019".
    15    § 1-a. Section 17 of chapter 576 of the  laws  of  1974  amending  the
    16  emergency  housing  rent  control  law  relating  to  the control of and
    17  stabilization of rent in certain cases, as amended  by  section  1-a  of
    18  part A of chapter 20 of the laws of 2015, is amended to read as follows:
    19    §  17.  Effective  date.    This act shall take effect immediately and
    20  shall remain in full force and effect [until and including the fifteenth
    21  day of June 2019] thereafter; except that sections two and  three  shall
    22  take  effect with respect to any city having a population of one million
    23  or more and section one shall take effect  with  respect  to  any  other
    24  city,  or  any  town or village whenever the local legislative body of a
    25  city, town or village determines the existence  of  a  public  emergency
    26  pursuant  to  section  three  of  the emergency tenant protection act of
    27  nineteen seventy-four, as enacted by  section  four  of  this  act,  and
    28  provided  that  the housing accommodations subject on the effective date
    29  of this act to stabilization pursuant to the New York city rent stabili-
    30  zation law of nineteen hundred sixty-nine shall remain subject  to  such
    31  law [upon the expiration of this act] thereafter.
    32    §  2.  Subdivision  2  of section 1 of chapter 274 of the laws of 1946
    33  constituting the emergency housing  rent  control  law,  as  amended  by
    34  section  2  of  part  A of chapter 20 of the laws of 2015, is amended to
    35  read as follows:
    36    2. The provisions  of  this  act,  and  all  regulations,  orders  and
    37  requirements thereunder shall remain in full force and effect [until and
    38  including June 15, 2019] thereafter.
    39    §  3.  Section 2 of chapter 329 of the laws of 1963 amending the emer-
    40  gency housing rent control law relating to recontrol of rents in Albany,
    41  as amended by section 3 of part A of chapter 20 of the laws of 2015,  is
    42  amended to read as follows:
    43    §  2.  This  act  shall  take effect immediately and the provisions of
    44  subdivision 6 of section 12 of the emergency housing rent  control  law,
    45  as  added  by this act, shall remain in full force and effect [until and
    46  including June 15, 2019] thereafter.
    47    § 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
    48  al business law and the administrative code of  the  city  of  New  York
    49  relating  to conversion of residential property to cooperative or condo-
    50  minium ownership in the city of New York, as amended  by  section  4  of
    51  part A of chapter 20 of the laws of 2015, is amended to read as follows:
    52    §  10.  This  act  shall  take  effect immediately; provided, that the
    53  provisions of sections one, two and nine of this  act  shall  remain  in
    54  full force and effect [only until and including June 15, 2019] thereaft-

        S. 6458                             4                            A. 8281

     1  er;  provided  further  that the provisions of section three of this act
     2  shall remain in full force and effect only so long as the  public  emer-
     3  gency  requiring  the  regulation  and  control of residential rents and
     4  evictions  continues  as  provided  in subdivision 3 of section 1 of the
     5  local emergency housing rent control  act;  provided  further  that  the
     6  provisions  of  sections  four,  five,  six  and seven of this act shall
     7  expire in accordance with the provisions of section 26-520 of the admin-
     8  istrative code of the city of New York as such section of  the  adminis-
     9  trative  code  is, from time to time, amended; provided further that the
    10  provisions of section 26-511 of the administrative code of the  city  of
    11  New  York, as amended by this act, which the New York City Department of
    12  Housing Preservation and Development must find are contained in the code
    13  of the real estate industry stabilization association of  such  city  in
    14  order  to approve it, shall be deemed contained therein as of the effec-
    15  tive date of this act; and provided further that any plan  accepted  for
    16  filing  by the department of law on or before the effective date of this
    17  act shall continue to be governed by the provisions of section  352-eeee
    18  of the general business law as they had existed immediately prior to the
    19  effective date of this act.
    20    § 5. Section 4 of chapter 402 of the laws of 1983 amending the general
    21  business  law  relating  to conversion of rental residential property to
    22  cooperative or condominium ownership in certain  municipalities  in  the
    23  counties of Nassau, Westchester and Rockland, as amended by section 5 of
    24  part A of chapter 20 of the laws of 2015, is amended to read as follows:
    25    §  4.  This  act  shall  take  effect  immediately; provided, that the
    26  provisions of sections one and three of this act shall  remain  in  full
    27  force  and  effect  [only until and including June 15, 2019] thereafter;
    28  and provided further that any plan accepted for filing by the department
    29  of law on or before the effective date of this act shall continue to  be
    30  governed  by  the  provisions of section 352-eee of the general business
    31  law as they had existed immediately prior to the effective date of  this
    32  act.
    33    §  6.  Subdivision  6 of section 46 of chapter 116 of the laws of 1997
    34  constituting the rent regulation reform act of 1997 is REPEALED.
    35    § 7. This act shall take effect immediately.

    36                                   PART B

    37    Section 1. Paragraph 5-a of subdivision c of  section  26-511  of  the
    38  administrative code of the city of New York is REPEALED.
    39    §  2.  Subdivision  (a-1) of section 10 of section 4 of chapter 576 of
    40  the laws of 1974, constituting the emergency tenant  protection  act  of
    41  nineteen seventy-four is REPEALED.
    42    § 3. Subdivision f of section 26-512 of the administrative code of the
    43  city of New York is REPEALED.
    44    §  4.  Subdivision  g  of section 6 of section 4 of chapter 576 of the
    45  laws of 1974, constituting the emergency tenant protection act of  nine-
    46  teen seventy-four is REPEALED.
    47    §  5.  Subdivision  9 of section 5 of chapter 274 of the laws of 1946,
    48  constituting the emergency housing rent control law is REPEALED.
    49    § 6. Section 26-403.2 of the administrative code of the  city  of  New
    50  York is REPEALED.
    51    § 7. The sixth undesignated paragraph of subdivision 5 of section 1 of
    52  chapter  21  of  the laws of 1962, constituting the local emergency rent
    53  control act, as amended by chapter 82 of the laws of 2003, is REPEALED.
    54    § 8. This act shall take effect immediately.

        S. 6458                             5                            A. 8281

     1                                   PART C

     2    Section  1.  Section  26-510 of the administrative code of the city of
     3  New York is amended by adding a new subdivision j to read as follows:
     4    j. Notwithstanding any other provision of this law, the adjustment for
     5  vacancy leases covered by the provisions of this law shall be determined
     6  exclusively pursuant to this  section.  County  rent  guidelines  boards
     7  shall  no longer promulgate adjustments for vacancy leases unless other-
     8  wise authorized by this chapter.
     9    § 2. Section 4 of section 4 of  chapter  576  of  the  laws  of  1974,
    10  constituting  the  emergency  tenant protection act of nineteen seventy-
    11  four, is amended by adding a new subdivision e to read as follows:
    12    e. Notwithstanding any other provision of this act, the adjustment for
    13  vacancy leases covered by the provisions of this act shall be determined
    14  exclusively pursuant to section ten of this act. County rent  guidelines
    15  boards shall no longer promulgate adjustments for vacancy leases.
    16    §  3. The opening paragraph of subdivision b of section 4 of section 4
    17  of chapter 576 of the laws of 1974, constituting  the  emergency  tenant
    18  protection  act  of  nineteen seventy-four, as amended by chapter 403 of
    19  the laws of 1983, is amended to read as follows:
    20    A county rent  guidelines  board  shall  establish  [annually]  annual
    21  guidelines  for  rent  adjustments  which, at its sole discretion may be
    22  varied and different for and within the several zones and  jurisdictions
    23  of  the  board,  and  in  determining whether rents for housing accommo-
    24  dations as to which an emergency has been declared pursuant to this  act
    25  shall  be  adjusted,  shall consider among other things (1) the economic
    26  condition of the residential real estate industry in the  affected  area
    27  including  such  factors as the prevailing and projected (i) real estate
    28  taxes and sewer and water rates, (ii) gross operating maintenance  costs
    29  (including  insurance  rates,  governmental fees, cost of fuel and labor
    30  costs), (iii) costs and availability of financing  (including  effective
    31  rates  of  interest), (iv) over-all supply of housing accommodations and
    32  over-all vacancy rates, (2) relevant data from the current and projected
    33  cost of living indices for the affected area, (3) such other data as may
    34  be made available to it. As soon as practicable after its  creation  and
    35  thereafter  not  later  than  July first of each year, a rent guidelines
    36  board shall file with  the  state  division  of  housing  and  community
    37  renewal its findings for the preceding calendar year, and shall accompa-
    38  ny  such  findings with a statement of the maximum rate or rates of rent
    39  adjustment, if any, for one or more classes of accommodation subject  to
    40  this  act,  authorized  for leases or other rental agreements commencing
    41  during the next succeeding twelve months. The standards for rent adjust-
    42  ments may be applicable for the entire county or may be varied according
    43  to such zones or jurisdictions within such county  as  the  board  finds
    44  necessary  to  achieve  the purposes of this subdivision.  A county rent
    45  guidelines board shall not establish annual guidelines for rent  adjust-
    46  ments  based  on  the  current rental cost of a unit or on the amount of
    47  time that has elapsed since another rent increase was authorized  pursu-
    48  ant to this chapter.
    49    § 4. Subdivision b of section 26-510 of the administrative code of the
    50  city of New York is amended to read as follows:
    51    b.  The rent guidelines board shall establish [annually] annual guide-
    52  lines for rent adjustments, and in determining whether rents for housing
    53  accommodations subject to the emergency tenant protection act  of  nine-
    54  teen  seventy-four  or  this law shall be adjusted shall consider, among
    55  other things (1) the economic condition of the residential  real  estate

        S. 6458                             6                            A. 8281

     1  industry  in  the affected area including such factors as the prevailing
     2  and projected (i) real estate taxes and  sewer  and  water  rates,  (ii)
     3  gross  operating  maintenance  costs (including insurance rates, govern-
     4  mental fees, cost of fuel and labor costs), (iii) costs and availability
     5  of  financing  (including  effective  rates  of interest), (iv) over-all
     6  supply of housing accommodations and over-all vacancy rates,  (2)  rele-
     7  vant  data from the current and projected cost of living indices for the
     8  affected area, (3) such other data as may be made available to  it.  Not
     9  later than July first of each year, the rent guidelines board shall file
    10  with  the  city  clerk its findings for the preceding calendar year, and
    11  shall accompany such findings with a statement of the  maximum  rate  or
    12  rates  of  rent  adjustment, if any, for one or more classes of accommo-
    13  dations subject to this law,  authorized  for  leases  or  other  rental
    14  agreements commencing on the next succeeding October first or within the
    15  twelve months thereafter. Such findings and statement shall be published
    16  in the City Record.  The rent guidelines board shall not establish annu-
    17  al guidelines for rent adjustments based on the current rental cost of a
    18  unit  or  on  the  amount  of  time  that has elapsed since another rent
    19  increase was authorized pursuant to this title.
    20    § 5. This act shall take effect immediately.

    21                                   PART D

    22    Section 1. Legislative findings  and  declaration  of  emergency.  The
    23  legislature  hereby finds and declares that the serious public emergency
    24  which led to the enactment of the existing laws  regulating  residential
    25  rents  and  evictions  continues  to  exist; that such laws would better
    26  serve the public interest if certain changes were made thereto,  includ-
    27  ing  the  continued  regulation  of  certain housing accommodations that
    28  become vacant.
    29    The legislature further  recognizes  that  severe  disruption  of  the
    30  rental  housing market has occurred and threatens to be exacerbated as a
    31  result of the present state of the law in relation to  the  deregulation
    32  of  housing  accommodations  upon  vacancy.  The situation has permitted
    33  speculative and profiteering practices and has brought about the loss of
    34  vital and irreplaceable affordable housing for working persons and fami-
    35  lies.
    36    The legislature therefore declares that in order to prevent uncertain-
    37  ty, potential hardship and dislocation  of  tenants  living  in  housing
    38  accommodations  subject  to  government  regulations  as  to rentals and
    39  continued occupancy as well as those not subject to such regulation, the
    40  provisions of this act are necessary to protect the public health, safe-
    41  ty and general welfare. The necessity in the  public  interest  for  the
    42  provisions  hereinafter enacted is hereby declared as a matter of legis-
    43  lative determination.
    44    § 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
    45  laws of 1946, constituting the emergency housing rent  control  law,  is
    46  REPEALED.
    47    §  3. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
    48  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
    49  protection act of nineteen seventy-four, is REPEALED.
    50    §  4.  Subparagraph  (k)  of  paragraph  2 of subdivision e of section
    51  26-403 of the administrative code of the city of New York is REPEALED.
    52    § 5. Sections 26-504.1, 26-504.2 and 26-504.3  of  the  administrative
    53  code of the city of New York are REPEALED.

        S. 6458                             7                            A. 8281

     1    §  6. Paragraph 12 of subdivision a of section 5 of chapter 576 of the
     2  laws of 1974, constituting the emergency tenant protection act of  nine-
     3  teen seventy-four, is REPEALED.
     4    §  7. Section 5-a of chapter 576 of the laws of 1974, constituting the
     5  emergency tenant protection act of nineteen seventy-four, is REPEALED.
     6    § 8. This act shall take effect immediately.

     7                                   PART E

     8    Section 1. Subdivision (a-2) of section 10 of section 4 of chapter 576
     9  of the laws of 1974, constituting the emergency tenant protection act of
    10  nineteen seventy-four, as amended by section 11 of part A of chapter  20
    11  of the laws of 2015, is amended to read as follows:
    12    (a-2)  [Provides  that  where] Where the amount of rent charged to and
    13  paid by the tenant is less than the legal regulated rent for the housing
    14  accommodation, the amount of rent for such housing  accommodation  which
    15  may  be  charged  [upon  renewal  or]  upon vacancy thereof, may, at the
    16  option of the owner, be based upon  such  previously  established  legal
    17  regulated  rent,  as  adjusted  by the most recent applicable guidelines
    18  increases and other increases authorized by law.  [Such housing accommo-
    19  dation shall be excluded from the provisions of  this  act  pursuant  to
    20  paragraph  thirteen  of  subdivision  a of section five of this act when
    21  subsequent to vacancy: (i) such legal regulated  rent  is  two  thousand
    22  five  hundred  dollars per month, or more, for any housing accommodation
    23  that is, or becomes, vacant after the effective date of the rent act  of
    24  2011  but  prior  to  the effective date of the rent act of 2015 or (ii)
    25  such legal regulated rent is two  thousand  seven  hundred  dollars  per
    26  month or more for any housing accommodation that is or becomes vacant on
    27  or after the rent act of 2015; starting on January 1, 2016, and annually
    28  thereafter,  the  maximum  legal  regulated  rent  for this deregulation
    29  threshold, shall also be increased by  the  same  percent  as  the  most
    30  recent  one  year  renewal  adjustment,  adopted  by the applicable rent
    31  guidelines board pursuant to the rent stabilization law.] Any tenant who
    32  is subject to a lease on or after the effective date of a chapter of the
    33  laws of two thousand nineteen which amended this subdivision, or  is  or
    34  was  entitled  to  receive  a  renewal or vacancy lease on or after such
    35  date, upon renewal of such lease, the amount of rent  for  such  housing
    36  accommodation  that  may  be  charged and paid shall be no more than the
    37  rent charged to and paid  by  the  tenant  prior  to  that  renewal,  as
    38  adjusted  by  the  most  recent  applicable guidelines increases and any
    39  other increases authorized by law.  Provided, however, that  for  build-
    40  ings  that  are subject to this statute by virtue of a regulatory agree-
    41  ment with a local government agency and which buildings receive  federal
    42  project  based  rental  assistance  administered  by  the  United States
    43  department of housing and urban development or a state or local  section
    44  eight  administering agency, where the rent set by the federal, state or
    45  local governmental agency is less than the legal regulated rent for  the
    46  housing accommodation, the amount of rent for such housing accommodation
    47  which  may be charged upon renewal or upon vacancy thereof, may be based
    48  upon such previously established legal regulated rent,  as  adjusted  by
    49  the  most  recent  applicable  guidelines  increases  or other increases
    50  authorized by law; and further provided that such vacancy shall  not  be
    51  caused by the failure of the owner or an agent of the owner, to maintain
    52  the housing accommodation in compliance with the warranty of habitabili-
    53  ty  set forth in subdivision one of section two hundred thirty-five-b of
    54  the real property law.

        S. 6458                             8                            A. 8281

     1    § 2. Paragraph 14 of subdivision c of section 26-511 of  the  adminis-
     2  trative code of the city of New York, as amended by section 12 of part A
     3  of chapter 20 of the laws of 2015, is amended to read as follows:
     4    (14)  [provides  that] where the amount of rent charged to and paid by
     5  the tenant is less than the legal regulated rent for the housing  accom-
     6  modation, the amount of rent for such housing accommodation which may be
     7  charged  [upon  renewal  or] upon vacancy thereof, may, at the option of
     8  the owner, be based upon such  previously  established  legal  regulated
     9  rent, as adjusted by the most recent applicable guidelines increases and
    10  any  other  increases  authorized  by law.   [Such housing accommodation
    11  shall be excluded from the provisions of this code pursuant  to  section
    12  26-504.2  of  this  chapter  when, subsequent to vacancy: (i) such legal
    13  regulated rent prior to vacancy is two thousand five hundred dollars per
    14  month, or more, for any housing accommodation that is or becomes  vacant
    15  after the effective date of the rent act of 2011 but prior to the effec-
    16  tive  date  of the rent act of 2015 or (ii) such legal regulated rent is
    17  two thousand seven hundred dollars per month or more, provided,  however
    18  that  on  January  1,  2016,  and annually thereafter, the maximum legal
    19  regulated rent for this deregulation threshold shall be adjusted by  the
    20  same  percentage  as  the  most  recent  one  year renewal adjustment as
    21  adjusted by the relevant rent guidelines board, for any housing accommo-
    22  dation that is or becomes vacant on or after the rent act of 2015.]  Any
    23  tenant  who  is  subject  to a lease on or after the effective date of a
    24  chapter of the laws of two thousand nineteen which  amended  this  para-
    25  graph, or is or was entitled to receive a renewal or vacancy lease on or
    26  after such date, upon renewal of such lease, the amount of rent for such
    27  housing accommodation that may be charged and paid shall be no more than
    28  the  rent  charged  to  and paid by the tenant prior to that renewal, as
    29  adjusted by the most recent  applicable  guidelines  increases  and  any
    30  other  increases  authorized by law.  Provided, however, that for build-
    31  ings that are subject to this statute by virtue of a  regulatory  agree-
    32  ment  with a local government agency and which buildings receive federal
    33  project based  rental  assistance  administered  by  the  United  States
    34  department  of housing and urban development or a state or local section
    35  eight administering agency, where the rent set by the federal, state  or
    36  local  governmental agency is less than the legal regulated rent for the
    37  housing accommodation, the amount of rent for such housing accommodation
    38  which may be charged upon renewal or upon vacancy thereof, may be  based
    39  upon  such  previously  established legal regulated rent, as adjusted by
    40  the most recent applicable  guidelines  increases  and  other  increases
    41  authorized  by  law; and further provided that such vacancy shall not be
    42  caused by the failure of the owner or an agent of the owner, to maintain
    43  the housing accommodation in compliance with the warranty of habitabili-
    44  ty set forth in subdivision one of section two hundred thirty-five-b  of
    45  the real property law.
    46    §  3.  This act shall take effect immediately; provided, further, that
    47  the amendments to section 26-511 of chapter 4 of title 26 of the  admin-
    48  istrative  code  of the city of New York made by section two of this act
    49  shall expire on the same date as such law expires and shall  not  affect
    50  the expiration of such law as provided under section 26-520 of such law.

    51                                   PART F

    52    Section  1. Paragraph 1 of subdivision a of section 12 of section 4 of
    53  chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
    54  protection  act  of  nineteen seventy-four, as amended by chapter 403 of

        S. 6458                             9                            A. 8281

     1  the laws of 1983, the opening paragraph and clause (i)  of  subparagraph
     2  (b) as amended by chapter 116 of the laws of 1997, is amended to read as
     3  follows:
     4    (1)  Subject  to the conditions and limitations of this paragraph, any
     5  owner of housing accommodations in a city having a  population  of  less
     6  than  one million or a town or village as to which an emergency has been
     7  declared pursuant to section three, who, upon complaint of a  tenant  or
     8  of  the state division of housing and community renewal, is found by the
     9  state division of housing and  community  renewal,  after  a  reasonable
    10  opportunity  to be heard, to have collected an overcharge above the rent
    11  authorized for a housing accommodation subject  to  this  act  shall  be
    12  liable  to  the  tenant for a penalty equal to three times the amount of
    13  such overcharge. [In no  event  shall  such  treble  damage  penalty  be
    14  assessed against an owner based solely on said owner's failure to file a
    15  proper  or timely initial or annual rent registration statement.] If the
    16  owner establishes by a preponderance of the evidence that the overcharge
    17  was neither willful nor attributable to his negligence, the state  divi-
    18  sion of housing and community renewal shall establish the penalty as the
    19  amount  of  the overcharge plus interest at the rate of interest payable
    20  on a judgment pursuant to section five thousand four of the civil  prac-
    21  tice  law and rules. After a complaint of rent overcharge has been filed
    22  and served on an owner, the voluntary adjustment of the rent and/or  the
    23  voluntary tender of a refund of rent overcharges shall not be considered
    24  by the division of housing and community renewal or a court of competent
    25  jurisdiction as evidence that the overcharge was not willful. (i) Except
    26  as  to  complaints  filed pursuant to clause (ii) of this paragraph, the
    27  legal regulated rent for purposes of determining an overcharge, shall be
    28  deemed to be the rent indicated  in  the  most  recent  reliable  annual
    29  registration  statement  for  a  rent stabilized tenant filed [four] and
    30  served upon the tenant six or more years prior to the most recent regis-
    31  tration statement, (or, if more recently filed, the initial registration
    32  statement) plus in each case any subsequent lawful increases and adjust-
    33  ments. [Where the amount of rent set forth in the annual rent  registra-
    34  tion  statement  filed  four years prior to the most recent registration
    35  statement is not challenged within four years  of  its  filing,  neither
    36  such  rent nor service of any registration shall be subject to challenge
    37  at any time thereafter.] The division of housing and  community  renewal
    38  or  a  court  of  competent jurisdiction, in investigating complaints of
    39  overcharge and in determining legal regulated rent, shall  consider  all
    40  available rent history which is reasonably necessary to make such deter-
    41  minations. (ii) As to complaints filed within ninety days of the initial
    42  registration  of  a  housing accommodation, the legal regulated rent for
    43  purposes of determining an overcharge shall be deemed  to  be  the  rent
    44  charged  on  the  date [four] six years prior to the date of the initial
    45  registration of the housing accommodation (or, if the  housing  accommo-
    46  dation  was  subject  to  this  act  for less than [four] six years, the
    47  initial legal regulated rent) plus in each case,  any  lawful  increases
    48  and  adjustments.  Where  the  rent charged on the date [four] six years
    49  prior to the date of  the  initial  registration  of  the  accommodation
    50  cannot  be  established, such rent shall be established by the division.
    51  [Where the amount of rent set forth  in  the  annual  rent  registration
    52  statement  filed four years prior to the most recent registration state-
    53  ment is not challenged within four years of  its  filing,  neither  such
    54  rent  nor  service  of any registration shall be subject to challenge at
    55  any time thereafter.]

        S. 6458                            10                            A. 8281

     1    (a) The order of the state division of housing and  community  renewal
     2  shall  apportion  the  owner's  liability  between  or among two or more
     3  tenants found to have  been  overcharged  by  such  owner  during  their
     4  particular tenancy of a unit.
     5    (b)  (i)  Except  as  provided  under  clauses  (ii) and (iii) of this
     6  subparagraph, a complaint under this subdivision [shall]  may  be  filed
     7  with  the  state  division of housing and community renewal [within four
     8  years of the first overcharge alleged and no determination of  an  over-
     9  charge and no award or calculation of an award of the amount of an over-
    10  charge  may  be  based upon an overcharge having occurred more than four
    11  years before the complaint is filed. This paragraph shall preclude exam-
    12  ination of the rental history of the housing accommodation prior to  the
    13  four-year  period  preceding  the filing of a complaint pursuant to this
    14  subdivision] or in a court of competent jurisdiction at any time, howev-
    15  er any recovery of overcharge penalties shall  be  limited  to  the  six
    16  years preceding the complaint.
    17    (ii)  [No]  A penalty of three times the overcharge [may be based upon
    18  an overcharge having occurred more than two years before  the  complaint
    19  is  filed  or  upon  an  overcharge which occurred prior to April first,
    20  nineteen hundred eighty-four] shall be  assessed  upon  all  overcharges
    21  willfully collected by the owner starting six years before the complaint
    22  is filed.
    23    (iii) Any complaint based upon overcharges occurring prior to the date
    24  of  filing of the initial rent registration as provided in subdivision b
    25  of section twelve-a of this act shall be filed within ninety days of the
    26  mailing of notice to the tenant of such registration.
    27    (c) Any affected tenant shall be notified of and given an  opportunity
    28  to  join  in  any complaint filed by an officer or employee of the state
    29  division of housing and community renewal.
    30    (d) An owner found  to  have  overcharged  shall,  in  all  cases,  be
    31  assessed the reasonable costs and attorney's fees of the proceeding, and
    32  interest from the date of the overcharge at the rate of interest payable
    33  on  a judgment pursuant to section five thousand four of the civil prac-
    34  tice law and rules.
    35    (e) The order of the state division of housing and  community  renewal
    36  awarding  penalties  may, upon the expiration of the period in which the
    37  owner may institute a proceeding pursuant to  article  seventy-eight  of
    38  the  civil  practice law and rules, be filed and enforced by a tenant in
    39  the same manner as a judgment or, in the alternative, not in  excess  of
    40  twenty  percent  thereof per month may be offset against any rent there-
    41  after due the owner.
    42    (f) Unless a tenant shall have filed a complaint  of  overcharge  with
    43  the  division  which complaint has not been withdrawn, nothing contained
    44  in this section shall be deemed to prevent a tenant or tenants, claiming
    45  to have been overcharged, from commencing an  action  or  interposing  a
    46  counterclaim  in  a court of competent jurisdiction for damages equal to
    47  the overcharge and the penalty provided for in this  section,  including
    48  interest from the date of the overcharge at the rate of interest payable
    49  on  a judgment pursuant to section five thousand four of the civil prac-
    50  tice law and rules, plus the statutory costs and allowable disbursements
    51  in connection with the proceeding. [Such action  must  be  commenced  or
    52  counterclaim  interposed  within  four  years of the date of the alleged
    53  overcharge but no recovery of three times the amount of  the  overcharge
    54  may  be  awarded  with respect to any overcharge which had occurred more
    55  than two years before the action is commenced or counterclaim is  inter-

        S. 6458                            11                            A. 8281

     1  posed.]  The courts and the division shall have concurrent jurisdiction,
     2  subject to the tenant's choice of forum.
     3    §  2. Paragraph 8 of subdivision a of section 12 of section 4 of chap-
     4  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
     5  protection  act  of  nineteen seventy-four, as amended by chapter 403 of
     6  the laws of 1983, is amended and a new paragraph 9 is added to  read  as
     7  follows:
     8    (8)  [Any]  Except where a specific provision of this law requires the
     9  maintenance of rent records for a longer period,  including  records  of
    10  the useful life of improvements made to any housing accommodation or any
    11  building,  any  owner  who  has  duly registered a housing accommodation
    12  pursuant to section twelve-a of this act shall not be required to  main-
    13  tain  or  produce  any records relating to rentals of such accommodation
    14  more than [four] six years prior to  the  most  recent  registration  or
    15  annual  statement  for such accommodation.  However, an owner's election
    16  not to maintain records shall not limit the authority of the division of
    17  housing and community renewal and  the  courts  to  examine  the  rental
    18  history  and  determine  legal regulated rents pursuant to this subdivi-
    19  sion.
    20    (9) The division of housing and community renewal and the  courts,  in
    21  investigating  complaints  of  overcharge and in determining legal regu-
    22  lated rents, shall consider all available rent history which is  reason-
    23  ably necessary to make such determinations, including but not limited to
    24  (a) any rent registration or other records filed with the state division
    25  of  housing  and  community  renewal,  or  any other state, municipal or
    26  federal agency, regardless of the date to which the information on  such
    27  registration  refers;  (b)  any  order issued by any state, municipal or
    28  federal agency; (c) any records maintained by the owner or tenants;  and
    29  (d)  any  public  record  kept  in the regular course of business by any
    30  state, municipal or federal agency. Nothing contained in this  paragraph
    31  shall  limit the examination of rent history relevant to a determination
    32  as to:
    33    (i) whether the legality of a rental amount charged or  registered  is
    34  reliable  in  light of all available evidence including, but not limited
    35  to, whether an unexplained increase in the registered or lease rents, or
    36  a fraudulent scheme to destabilize the housing  accommodation,  rendered
    37  such rent or registration unreliable;
    38    (ii)  whether  an  accommodation  is  subject  to the emergency tenant
    39  protection act;
    40    (iii) whether an order issued by the division of housing and community
    41  renewal or a court of competent jurisdiction, including, but not limited
    42  to an order issued pursuant to section 26-514 of the administrative code
    43  of the city of New York, or any regulatory agreement or  other  contract
    44  with  any  governmental agency, and remaining in effect within six years
    45  of the filing of a complaint pursuant to this section, affects or limits
    46  the amount of rent that may be charged or collected;
    47    (iv) whether an overcharge was or was not willful;
    48    (v) whether a rent adjustment that requires information regarding  the
    49  length of occupancy by a present or prior tenant was lawful;
    50    (vi)  the existence or terms and conditions of a preferential rent, or
    51  the propriety of a legal  registered  rent  during  a  period  when  the
    52  tenants were charged a preferential rent;
    53    (vii)  the  legality of a rent charged or registered immediately prior
    54  to the registration of a preferential rent; or

        S. 6458                            12                            A. 8281

     1    (viii) the amount of the legal regulated rent where the apartment  was
     2  vacant  or  temporarily exempt on the date six years prior to a tenant's
     3  complaint.
     4    §  3.  Subdivision  b of section 12 of section 4 of chapter 576 of the
     5  laws of 1974, constituting the emergency tenant protection act of  nine-
     6  teen  seventy-four,  as  amended  by chapter 403 of the laws of 1983, is
     7  amended to read as follows:
     8    b. Within a city having a population of one million or more, the state
     9  division of housing and community renewal  shall  have  such  powers  to
    10  enforce this act as shall be provided in the New York city rent stabili-
    11  zation  law  of  nineteen  hundred  sixty-nine,  as amended, or as shall
    12  otherwise be provided by law.   Unless  a  tenant  shall  have  filed  a
    13  complaint  of  overcharge with the division which complaint has not been
    14  withdrawn, nothing contained in this section shall be deemed to  prevent
    15  a  tenant or tenants, claiming to have been overcharged, from commencing
    16  an action or interposing a counterclaim in a court of  competent  juris-
    17  diction for damages equal to the overcharge and the penalty provided for
    18  in  this  section, including interest from the date of the overcharge at
    19  the rate of interest payable on a  judgment  pursuant  to  section  five
    20  thousand  four  of  the civil practice law and rules, plus the statutory
    21  costs and allowable disbursements in connection with the proceeding. The
    22  courts and the division shall have concurrent jurisdiction,  subject  to
    23  the tenant's choice of forum.
    24    § 4. Subdivision a of section 26-516 of the administrative code of the
    25  city  of  New  York,  as  amended by chapter 116 of the laws of 1997, is
    26  amended to read as follows:
    27    a. Subject to the conditions and limitations of this subdivision,  any
    28  owner  of  housing accommodations who, upon complaint of a tenant, or of
    29  the state division of housing and community renewal,  is  found  by  the
    30  state  division  of  housing  and  community renewal, after a reasonable
    31  opportunity to be heard, to have collected an overcharge above the  rent
    32  authorized  for a housing accommodation subject to this chapter shall be
    33  liable to the tenant for a penalty equal to three times  the  amount  of
    34  such  overcharge.  [In  no  event  shall  such  treble damage penalty be
    35  assessed against an owner based solely on said owner's failure to file a
    36  timely or proper initial or annual rent registration statement.] If  the
    37  owner establishes by a preponderance of the evidence that the overcharge
    38  was  not  willful,  the  state division of housing and community renewal
    39  shall establish the penalty as the amount of the overcharge plus  inter-
    40  est.   After a complaint of rent overcharge has been filed and served on
    41  an owner, the voluntary adjustment of  the  rent  and/or  the  voluntary
    42  tender  of  a  refund of rent overcharges shall not be considered by the
    43  division of housing and community renewal or a court of competent juris-
    44  diction as evidence that the overcharge was not willful. (i)  Except  as
    45  to complaints filed pursuant to clause (ii) of this paragraph, the legal
    46  regulated  rent  for purposes of determining an overcharge, shall be the
    47  rent indicated in the most recent reliable annual registration statement
    48  filed [four] and served upon the tenant six or more years prior  to  the
    49  most  recent  registration  statement,  (or, if more recently filed, the
    50  initial registration statement) plus in each case any subsequent  lawful
    51  increases  and  adjustments.  [Where the amount of rent set forth in the
    52  annual rent registration statement filed four years prior  to  the  most
    53  recent registration statement is not challenged within four years of its
    54  filing,  neither  such  rent  nor  service  of any registration shall be
    55  subject to challenge at any time thereafter.] The  division  of  housing
    56  and  community renewal or a court of competent jurisdiction, in investi-

        S. 6458                            13                            A. 8281

     1  gating complaints of overcharge and in determining legal regulated rent,
     2  shall consider all available rent history which is reasonably  necessary
     3  to  make  such determinations. (ii) As to complaints filed within ninety
     4  days  of  the initial registration of a housing accommodation, the legal
     5  regulated rent shall be deemed to be the rent charged on the date [four]
     6  six years prior to the date of the initial registration of  the  housing
     7  accommodation  (or,  if  the  housing  accommodation was subject to this
     8  chapter for less than [four] six  years,  the  initial  legal  regulated
     9  rent) plus in each case, any lawful increases and adjustments. Where the
    10  rent  charged  on  the  date  [four]  six years prior to the date of the
    11  initial registration of the accommodation cannot  be  established,  such
    12  rent shall be established by the division.
    13    Where the prior rent charged [on the date four years prior to the date
    14  of  initial  registration  of]  for  the housing accommodation cannot be
    15  established, such rent shall be established  by  the  division  provided
    16  that  where  a rent is established based on rentals determined under the
    17  provisions of the local emergency housing rent  control  act  such  rent
    18  must be adjusted to account for no less than the minimum increases which
    19  would  be  permitted if the housing accommodation were covered under the
    20  provisions of this chapter, less any appropriate penalties.  [Where  the
    21  amount of rent set forth in the annual rent registration statement filed
    22  four  years prior to the most recent registration statement is not chal-
    23  lenged within four years of its filing, neither such rent nor service of
    24  any registration shall be subject to challenge at any time thereafter.]
    25    (1) The order of the state division of housing and  community  renewal
    26  or court of competent jurisdiction shall apportion the owner's liability
    27  between  or  among two or more tenants found to have been overcharged by
    28  such owner during their particular tenancy of a unit.
    29    (2) [Except as provided under clauses (i) and (ii) of this  paragraph,
    30  a]  A  complaint  under  this  subdivision [shall] may be filed with the
    31  state division of housing and community renewal [within  four  years  of
    32  the  first  overcharge alleged and no determination of an overcharge and
    33  no award or calculation of an award of the amount of an  overcharge  may
    34  be  based upon an overcharge having occurred more than four years before
    35  the complaint is filed] or in a court of competent jurisdiction  at  any
    36  time,  however  any recovery of overcharge penalties shall be limited to
    37  the six years preceding the complaint.   [(i) No]  A  penalty  of  three
    38  times  the  overcharge  [may be based upon an overcharge having occurred
    39  more than two years] shall be assessed upon  all  overcharges  willfully
    40  collected  by the owner starting six years before the complaint is filed
    41  [or upon an overcharge which occurred prior  to  April  first,  nineteen
    42  hundred eighty-four. (ii) Any complaint based upon overcharges occurring
    43  prior to the date of filing of the initial rent registration as provided
    44  in  section  26-517 of this chapter shall be filed within ninety days of
    45  the mailing of notice to the tenant of such registration. This paragraph
    46  shall preclude examination of the rental history of the housing accommo-
    47  dation prior to the four-year period preceding the filing of a complaint
    48  pursuant to this subdivision].
    49    (3) Any affected tenant shall be notified of and given an  opportunity
    50  to  join  in  any complaint filed by an officer or employee of the state
    51  division of housing and community renewal.
    52    (4) An owner found to have overcharged [may]  shall  be  assessed  the
    53  reasonable costs and attorney's fees of the proceeding and interest from
    54  the date of the overcharge at the rate of interest payable on a judgment
    55  pursuant  to  section  five  thousand four of the civil practice law and
    56  rules.

        S. 6458                            14                            A. 8281

     1    (5) The order of the state division of housing and  community  renewal
     2  awarding  penalties  may, upon the expiration of the period in which the
     3  owner may institute a proceeding pursuant to  article  seventy-eight  of
     4  the  civil  practice law and rules, be filed and enforced by a tenant in
     5  the same manner as a judgment or not in excess of twenty percent thereof
     6  per month may be offset against any rent thereafter due the owner.
     7    § 5. Subdivision g of section 26-516 of the administrative code of the
     8  city  of  New York is amended, subdivision h is relettered subdivision i
     9  and a new subdivision h is added to read as follows:
    10    g. [Any] Except where a specific provision of this  law  requires  the
    11  maintenance  of  rent  records for a longer period, including records of
    12  the useful life of improvements made to any housing accommodation or any
    13  building, any owner who has  duly  registered  a  housing  accommodation
    14  pursuant  to  section  26-517  of  this chapter shall not be required to
    15  maintain or produce any records relating to  rentals  of  such  accommo-
    16  dation for more than [four] six years prior to the most recent registra-
    17  tion  or  annual  statement  for such accommodation. However, an owner's
    18  election not to maintain records shall not limit the  authority  of  the
    19  division  of housing and community renewal and the courts to examine the
    20  rental history and determine legal  regulated  rents  pursuant  to  this
    21  section.
    22    h.  The  division of housing and community renewal, and the courts, in
    23  investigating complaints of overcharge and in  determining  legal  regu-
    24  lated  rents, shall consider all available rent history which is reason-
    25  ably necessary to make such determinations, including but not limited to
    26  (i) any rent registration or other records filed with the state division
    27  of housing and community renewal,  or  any  other  state,  municipal  or
    28  federal  agency, regardless of the date to which the information on such
    29  registration refers; (ii) any order issued by any  state,  municipal  or
    30  federal  agency;  (iii)  any records maintained by the owner or tenants;
    31  and (iv) any public record kept in the regular course of business by any
    32  state, municipal or federal agency. Nothing contained in  this  subdivi-
    33  sion  shall limit the examination of rent history relevant to a determi-
    34  nation as to:
    35    (i) whether the legality of a rental amount charged or  registered  is
    36  reliable in light of all available evidence including but not limited to
    37  whether  an  unexplained increase in the registered or lease rents, or a
    38  fraudulent scheme to destabilize  the  housing  accommodation,  rendered
    39  such rent or registration unreliable;
    40    (ii)  whether  an  accommodation  is  subject  to the emergency tenant
    41  protection act or the rent stabilization law;
    42    (iii) whether an order issued by the division of housing and community
    43  renewal or by a court, including, but not limited  to  an  order  issued
    44  pursuant  to section 26-514 of this chapter, or any regulatory agreement
    45  or other contract with any governmental agency, and remaining in  effect
    46  within  six years of the filing of a complaint pursuant to this section,
    47  affects or limits the amount of rent that may be charged or collected;
    48    (iv) whether an overcharge was or was not willful;
    49    (v) whether a rent adjustment that requires information regarding  the
    50  length of occupancy by a present or prior tenant was lawful;
    51    (vi)  the existence or terms and conditions of a preferential rent, or
    52  the propriety of a legal  registered  rent  during  a  period  when  the
    53  tenants were charged a preferential rent;
    54    (vii)  the  legality of a rent charged or registered immediately prior
    55  to the registration of a preferential rent; or

        S. 6458                            15                            A. 8281

     1    (viii) the amount of the legal regulated rent where the apartment  was
     2  vacant  or  temporarily exempt on the date six years prior to a tenant's
     3  complaint.
     4    §  6. Section 213-a of the civil practice law and rules, as amended by
     5  chapter 116 of the laws of 1997, is amended to read as follows:
     6    § 213-a. [Actions to be  commenced  within  four  years;  residential]
     7  Residential rent overcharge. [An action on a residential rent overcharge
     8  shall be commenced within four years of the first overcharge alleged and
     9  no  determination  of  an  overcharge  and no award or calculation of an
    10  award of the amount of any overcharge may be based  upon  an  overcharge
    11  having  occurred  more  than  four years before the action is commenced.
    12  This section shall preclude examination of the  rental  history  of  the
    13  housing  accommodation prior to the four-year period immediately preced-
    14  ing the commencement of the action.] No overcharge penalties or  damages
    15  may  be  awarded  for  a period more than six years before the action is
    16  commenced or complaint is filed, however, an  overcharge  claim  may  be
    17  filed  at  any  time, and the calculation and determination of the legal
    18  rent and the amount of the overcharge shall be made in  accordance  with
    19  the  provisions  of  law  governing the determination and calculation of
    20  overcharges.
    21    § 7. This act shall take effect immediately and  shall  apply  to  any
    22  claims pending or filed on and after such date; provided that the amend-
    23  ments  to  section 26-516 of chapter 4 of title 26 of the administrative
    24  code of the city of New York made by sections four and five of this  act
    25  shall  expire  on the same date as such law expires and shall not affect
    26  the expiration of such law as provided under section 26-520 of such law.

    27                                   PART G

    28    Section 1. Short title. This act shall be known and may  be  cited  as
    29  the "statewide tenant protection act of 2019."
    30    §  2.  Section  2  of  section  4  of chapter 576 of the laws of 1974,
    31  constituting the emergency tenant protection act  of  nineteen  seventy-
    32  four, is amended to read as follows:
    33    §  2.  Legislative  finding. The legislature hereby finds and declares
    34  that a serious public emergency continues to exist in the housing  of  a
    35  considerable number of persons in the state of New York [which emergency
    36  was  at  its inception created by war, the effects of war and the after-
    37  math of hostilities], that such  emergency  [necessitated]  necessitates
    38  the  intervention  of  federal,  state  and local government in order to
    39  prevent speculative, unwarranted and abnormal increases in  rents;  that
    40  there continues to exist in many areas of the state an acute shortage of
    41  housing  accommodations caused by continued high demand, attributable in
    42  part to new household formations and decreased supply, in large  measure
    43  attributable to reduced availability of federal subsidies, and increased
    44  costs of construction and other inflationary factors; that a substantial
    45  number  of  persons  residing  in  housing  not presently subject to the
    46  provisions of this act or the emergency housing rent control law or  the
    47  local emergency housing rent control act are being charged excessive and
    48  unwarranted  rents  and  rent  increases;  that preventive action by the
    49  legislature continues to be imperative in order to prevent  exaction  of
    50  unjust,  unreasonable  and oppressive rents and rental agreements and to
    51  forestall profiteering, speculation and other disruptive practices tend-
    52  ing to produce threats to the public health, safety and general welfare;
    53  that in order to prevent  uncertainty,  hardship  and  dislocation,  the
    54  provisions  of this act are necessary and designed to protect the public

        S. 6458                            16                            A. 8281

     1  health, safety and general welfare; that the transition from  regulation
     2  to a normal market of free bargaining between landlord and tenant, while
     3  the  ultimate objective of state policy, must take place with due regard
     4  for  such  emergency;  and  that  the  policy  herein expressed shall be
     5  subject to determination of the existence of a public emergency  requir-
     6  ing the regulation of residential rents within any city, town or village
     7  by the local legislative body of such city, town or village.
     8    §  3.  Section  14  of  section  4 of chapter 576 of the laws of 1974,
     9  constituting the emergency tenant protection act  of  nineteen  seventy-
    10  four, is amended to read as follows:
    11    §  14.  Application of act. The provisions of this act shall [only] be
    12  applicable:
    13    a. in the city of New York; and
    14    b. in [the counties of Nassau, Westchester and Rockland] all  counties
    15  within  the  state  of  New  York outside the city of New York and shall
    16  become and remain effective only in a  city,  town  or  village  located
    17  therein as provided in section three of this act.
    18    §  4.  Subdivision  a  of section 5 of section 4 of chapter 576 of the
    19  laws of 1974 constituting the emergency tenant protection act  of  nine-
    20  teen  seventy-four  is  amended by adding a new paragraph 5-a to read as
    21  follows:
    22    (5-a) housing accommodations located outside of a city  with  a  popu-
    23  lation of one million or more in any such buildings that were vacant and
    24  unoccupied  on June first, two thousand nineteen and had been vacant and
    25  unoccupied for at least the one-year period immediately  preceding  such
    26  date;
    27    §  5.  Subdivision  a  of section 4 of section 4 of chapter 576 of the
    28  laws of 1974 constituting the emergency tenant protection act  of  nine-
    29  teen  hundred  seventy-four,  as  amended  by chapter 349 of the laws of
    30  1979, is amended and a new subdivision a-1 is added to read as follows:
    31    a. In each county wherein any city having a population  of  less  than
    32  one  million  or  any town or village has determined the existence of an
    33  emergency pursuant to section three of this act, there shall be  created
    34  a  rent  guidelines  board  to  consist of nine members appointed by the
    35  commissioner of housing and community renewal upon recommendation of the
    36  county legislature [which], except that a rent guidelines board  created
    37  subsequent to the effective date of the chapter of the laws of two thou-
    38  sand  nineteen  that  amended this section shall consist of nine members
    39  appointed by the commissioner of  housing  and  community  renewal  upon
    40  recommendations  of  the  local  legislative  body of each city having a
    41  population of less than one million or town or village which has  deter-
    42  mined  the  existence  of an emergency pursuant to section three of this
    43  act.  Such recommendation shall be made within  thirty  days  after  the
    44  first local declaration of an emergency in such county; two such members
    45  shall  be  representative  of  tenants,  two  shall be representative of
    46  owners of property, and five shall be public members each of whom  shall
    47  have  had at least five years experience in either finance, economics or
    48  housing. One public member shall be designated by  the  commissioner  to
    49  serve  as  chairman  and  shall  hold no other public office. No member,
    50  officer or employee of any municipal rent regulation agency or the state
    51  division of housing and community renewal and  no  person  who  owns  or
    52  manages  real  estate  covered  by  this law or who is an officer of any
    53  owner or tenant organization shall serve on a rent guidelines board. One
    54  public member, one member  representative  of  tenants  and  one  member
    55  representative  of  owners  shall serve for a term ending two years from
    56  January first next succeeding the date of their appointment; one  public

        S. 6458                            17                            A. 8281

     1  member,  one  member  representative of tenants and one member represen-
     2  tative of owners shall serve for terms ending three years from the Janu-
     3  ary first next succeeding the date of their appointment and three public
     4  members  shall serve for terms ending four years from January first next
     5  succeeding the dates of their  appointment.    Thereafter,  all  members
     6  shall  serve  for  terms  of four years each.  Members shall continue in
     7  office until their successors have been  appointed  and  qualified.  The
     8  commissioner  shall fill any vacancy which may occur by reason of death,
     9  resignation or otherwise  in  a  manner  consistent  with  the  original
    10  appointment.  A member may be removed by the commissioner for cause, but
    11  not without an opportunity to be heard in person or by counsel,  in  his
    12  defense,  upon  not  less  than  ten  days  notice. Compensation for the
    13  members of the board shall be at the rate of  one  hundred  dollars  per
    14  day, for no more than twenty days a year, except that the chairman shall
    15  be  compensated at the rate of one hundred twenty-five dollars a day for
    16  no more than thirty days a year.  The  board  shall  be  provided  staff
    17  assistance by the division of housing and community renewal. The compen-
    18  sation  of  such members and the costs of staff assistance shall be paid
    19  by the division of housing and community renewal which  shall  be  reim-
    20  bursed  in  the manner prescribed in section four of this act. The local
    21  legislative body of each city having  a  population  of  less  than  one
    22  million  and each town and village in which an emergency has been deter-
    23  mined to exist as herein provided shall be authorized to  designate  one
    24  person  who  shall be representative of tenants and one person who shall
    25  be representative of owners of property to serve  at  its  pleasure  and
    26  without  compensation  to  advise  and assist the county rent guidelines
    27  board in matters affecting the adjustment of rents for housing  accommo-
    28  dations in such city, town or village as the case may be.
    29    a-1.  Notwithstanding  the provisions of subdivision a of this section
    30  to the contrary, in each county that became subject to this act pursuant
    31  to the chapter of the laws of two thousand nineteen  that  amended  this
    32  section,  the  commissioner  shall reconstitute the existing rent guide-
    33  lines board subsequent to any initial  local  declaration  of  emergency
    34  within  such  county  for  the purpose of ensuring representation of all
    35  cities having a population of less than one million and  all  towns  and
    36  villages  within such county having determined the existence of an emer-
    37  gency in accordance with this act are represented, pursuant to rules and
    38  regulations  promulgated  by  the  division  of  housing  and  community
    39  renewal.
    40    § 6. Severability clause. If any provision of this act or the applica-
    41  tion  there  shall, for any reason be adjudged by any court of competent
    42  jurisdiction to be invalid or unconstitutional, such judgement shall not
    43  affect, impair or invalidate the remainder of this  act,  but  shall  be
    44  confined  in its operation to the provision thereof directly involved in
    45  the controversy  in  which  the  judgement  shall  have  been  rendered;
    46  provided,  however,  that  in  the  event that the entire system of rent
    47  control or stabilization shall be finally adjudged invalid or  unconsti-
    48  tutional  by  a court of competent jurisdiction because of the operation
    49  of any provision of this act, such provision shall  be  null,  void  and
    50  without  effect, and all other provisions of this act which can be given
    51  effect without such invalid provision, as  well  as  provisions  of  any
    52  other  law,  relating  to the control of or stabilization of rent, as in
    53  effect prior to the enactment of this act as otherwise amended  by  this
    54  act,  shall  continue  in full force and effect for the period of effec-
    55  tiveness set forth in section 17 of chapter 576 of  the  laws  of  1974,

        S. 6458                            18                            A. 8281

     1  constituting  the  emergency  tenant protection act of nineteen seventy-
     2  four, as amended.
     3    § 7. This act shall take effect immediately.

     4                                   PART H

     5    Section  1.  Paragraph  5  of  subdivision  a of section 26-405 of the
     6  administrative code of the city of  New  York  is  amended  to  read  as
     7  follows:
     8    (5)  Where  a  maximum rent established pursuant to this chapter on or
     9  after January first, nineteen hundred seventy-two, is  higher  than  the
    10  previously  existing  maximum  rent,  the  landlord  may  not collect an
    11  increase from a tenant in occupancy in any one year period of more  than
    12  the  lesser  of  either  seven  and  one-half percentum [increase from a
    13  tenant in occupancy on such date in any one year period, provided howev-
    14  er, that where] or an average of the previous  five  years  of  one-year
    15  rent  adjustments  on  rent  stabilized apartments as established by the
    16  rent guidelines board, pursuant to subdivision b of  section  26-510  of
    17  this  title. If the period for which the rent is established exceeds one
    18  year, regardless of how the collection thereof  is  averaged  over  such
    19  period,  the  rent  the landlord shall be entitled to receive during the
    20  first twelve months shall not be increased by more than  the  lesser  of
    21  either  seven  and one-half percentum or an average of the previous five
    22  years of one-year rent adjustments  on  rent  stabilized  apartments  as
    23  established  by  the rent guidelines board, pursuant to subdivision b of
    24  section 26-510 of this title, over the previous rent  [and].  Any  addi-
    25  tional  annual  rents  shall  not  exceed the lesser of either seven and
    26  one-half percentum or an average of the previous five years of  one-year
    27  rent  adjustments  on  rent  stabilized apartments as established by the
    28  rent guidelines board, pursuant to subdivision b of  section  26-510  of
    29  this  title,  of the rent paid during the previous year. Notwithstanding
    30  any of the foregoing limitations in this paragraph  five,  maximum  rent
    31  shall  be  increased  if ordered by the agency pursuant to subparagraphs
    32  (d), (e), (f), (g), (h), (i), (k), [(l),] or (m) [or (n)]  of  paragraph
    33  one  of  subdivision g of this section. [Commencing January first, nine-
    34  teen hundred eighty, rent adjustments pursuant to  subparagraph  (n)  of
    35  paragraph  one  of  subdivision g of this section shall be excluded from
    36  the maximum  rent  when  computing  the  seven  and  one-half  percentum
    37  increase  authorized  by  this paragraph five.] Where a housing accommo-
    38  dation is vacant on January  first,  nineteen  hundred  seventy-two,  or
    39  becomes  vacant  thereafter  by voluntary surrender of possession by the
    40  tenants, the maximum rent established for  such  accommodations  may  be
    41  collected.
    42    §  2.  Subparagraphs  (l)  and  (n) of paragraph 1 of subdivision g of
    43  section 26-405 of the administrative code of the city of  New  York  are
    44  REPEALED.
    45    §  3.  Section  4 of chapter 274 of the laws of 1946, constituting the
    46  emergency housing rent control law, is amended by adding a new  subdivi-
    47  sion 9 to read as follows:
    48    9.  No  annual  rent  increase  authorized  pursuant to this act shall
    49  exceed the average  of  the  previous  five  annual  rental  adjustments
    50  authorized  by a rent guidelines board for a rent stabilized unit pursu-
    51  ant to section 4 of the emergency  tenant  protection  act  of  nineteen
    52  seventy-four.
    53    §  4.    The administrative code of the city of New York is amended by
    54  adding a new section 26-407.1 to read as follows:

        S. 6458                            19                            A. 8281

     1    § 26-407.1 Fuel pass-along to tenants under rent  control  prohibited.
     2  Notwithstanding any other provision of law, rule, regulation, charter or
     3  administrative code, tenants of housing accommodations which are subject
     4  to  rent  control  under  this  chapter  shall  not be subject to a fuel
     5  adjustment  or pass-along increase in rent and any such increase to such
     6  tenant shall be null and void.
     7    § 5. This act shall take effect immediately; provided that the  amend-
     8  ments  to section 26-405 of the city rent and rehabilitation law made by
     9  section one of this act shall remain in full force and  effect  only  as
    10  long  as  the  public  emergency requiring the regulation and control of
    11  residential rents and evictions continues, as provided in subdivision  3
    12  of  section  1  of  the  local  emergency  housing rent control act; and
    13  provided further that the addition of section 26-407.1 to the city  rent
    14  and  rehabilitation law made by section four of this act shall remain in
    15  full force and effect only as long as the public emergency requiring the
    16  regulation and control of residential rents and evictions continues,  as
    17  provided  in  subdivision  3 of section 1 of the local emergency housing
    18  rent control act.

    19                                   PART I

    20    Section 1. Paragraph 1 of subdivision  b  of  section  26-408  of  the
    21  administrative  code  of  the  city  of  New  York is amended to read as
    22  follows:
    23    (1) The landlord seeks in good faith to recover possession of a  hous-
    24  ing  accommodation because of immediate and compelling necessity for his
    25  or her own personal use and occupancy as his or her primary residence or
    26  for the use and occupancy of his or her immediate family as their prima-
    27  ry residence provided,  however,  that  this  subdivision  shall  permit
    28  recovery  of  only one housing accommodation and shall not apply where a
    29  member of the household lawfully occupying the housing accommodation  is
    30  sixty-two years of age or older, has been a tenant in a housing accommo-
    31  dation  in  that  building for [twenty] fifteen years or more, or has an
    32  impairment which results from anatomical, physiological or psychological
    33  conditions, other than addiction to alcohol, gambling, or any controlled
    34  substance, which are demonstrable by medically acceptable  clinical  and
    35  laboratory diagnostic techniques, and which are expected to be permanent
    36  and  which  prevent  the tenant from engaging in any substantial gainful
    37  employment; provided, further, that a tenant  required  to  surrender  a
    38  housing  accommodation  by virtue of the operation of subdivision g or h
    39  of this section shall have a cause of action in any court  of  competent
    40  jurisdiction  for  damages, declaratory, and injunctive relief against a
    41  landlord or purchaser of the premises who makes a  fraudulent  statement
    42  regarding  a proposed use of the housing accommodation. In any action or
    43  proceeding brought pursuant to this paragraph a prevailing tenant  shall
    44  be  entitled  to  recovery  of actual damages, and reasonable attorneys'
    45  fees; or
    46    § 2. Subparagraph (b) of paragraph  9  of  subdivision  c  of  section
    47  26-511  of the administrative code of the city of New York is amended to
    48  read as follows:
    49    (b) where he or she seeks to  recover  possession  of  one  [or  more]
    50  dwelling  [units] unit because of immediate and compelling necessity for
    51  his or her own personal use and occupancy as his or  her  primary  resi-
    52  dence [in the city of New York and/or] or for the use and occupancy of a
    53  member  of  his  or her immediate family as his or her primary residence
    54  [in the city of New York],  provided  however,  that  this  subparagraph

        S. 6458                            20                            A. 8281

     1  shall  permit  recovery  of  only  one dwelling unit and shall not apply
     2  where a tenant or the spouse of a tenant lawfully occupying the dwelling
     3  unit is sixty-two years of age or older, has been a tenant in a dwelling
     4  unit  in  that  building for fifteen years or more, or has an impairment
     5  which results from anatomical,  physiological  or  psychological  condi-
     6  tions,  other  than  addiction  to  alcohol, gambling, or any controlled
     7  substance, which are demonstrable by medically acceptable  clinical  and
     8  laboratory diagnostic techniques, and which are expected to be permanent
     9  and  which  prevent  the tenant from engaging in any substantial gainful
    10  employment, unless such  owner  offers  to  provide  and  if  requested,
    11  provides  an equivalent or superior housing accommodation at the same or
    12  lower stabilized rent in a closely proximate  area.  The  provisions  of
    13  this  subparagraph shall only permit one of the individual owners of any
    14  building to recover possession of one [or more]  dwelling  [units]  unit
    15  for  his or her own personal use and/or for that of his or her immediate
    16  family. [Any] A dwelling unit recovered by an  owner  pursuant  to  this
    17  subparagraph  shall  not  for a period of three years be rented, leased,
    18  subleased or assigned to any person other than a person for whose  bene-
    19  fit recovery of the dwelling unit is permitted pursuant to this subpara-
    20  graph  or  to  the tenant in occupancy at the time of recovery under the
    21  same terms as the original  lease;  provided,  however,  that  a  tenant
    22  required to surrender a housing accommodation by virtue of the operation
    23  of subdivision g or h of section 26-408 of this title shall have a cause
    24  of action in any court of competent jurisdiction for damages, declarato-
    25  ry,  and  injunctive relief against a landlord or purchaser of the prem-
    26  ises who makes a fraudulent statement regarding a proposed  use  of  the
    27  housing  accommodation.  In any action or proceeding brought pursuant to
    28  this subparagraph a prevailing tenant shall be entitled to  recovery  of
    29  actual damages, and reasonable attorneys' fees.  This subparagraph shall
    30  not be deemed to establish or eliminate any claim that the former tenant
    31  of  the  dwelling  unit  may  otherwise have against the owner. Any such
    32  rental, lease, sublease or assignment during such period  to  any  other
    33  person  may  be subject to a penalty of a forfeiture of the right to any
    34  increases in residential rents in such building for a  period  of  three
    35  years; or
    36    §  3.  Subdivision  a of section 10 of section 4 of chapter 576 of the
    37  laws of 1974, constituting the emergency tenant protection act of  nine-
    38  teen  seventy-four,  as  amended  by chapter 234 of the laws of 1984, is
    39  amended to read as follows:
    40    a. For cities having a population of less than one million  and  towns
    41  and  villages, the state division of housing and community renewal shall
    42  be empowered to implement this  act  by  appropriate  regulations.  Such
    43  regulations  may encompass such speculative or manipulative practices or
    44  renting or leasing practices as the state division of housing and commu-
    45  nity renewal determines constitute or are likely to cause  circumvention
    46  of  this act. Such regulations shall prohibit practices which are likely
    47  to prevent any person from asserting any right or remedy granted by this
    48  act, including but not limited to retaliatory  termination  of  periodic
    49  tenancies and shall require owners to grant a new one or two year vacan-
    50  cy or renewal lease at the option of the tenant, except where a mortgage
    51  or  mortgage  commitment existing as of the local effective date of this
    52  act provides that the owner shall not grant a one-year lease; and  shall
    53  prescribe  standards with respect to the terms and conditions of new and
    54  renewal leases, additional rent and such  related  matters  as  security
    55  deposits, advance rental payments, the use of escalator clauses in leas-
    56  es and provision for increase in rentals for garages and other ancillary

        S. 6458                            21                            A. 8281

     1  facilities,  so  as to insure that the level of rent adjustments author-
     2  ized under this law will not be  subverted  and  made  ineffective.  Any
     3  provision  of  the  regulations permitting an owner to refuse to renew a
     4  lease  on  grounds that the owner seeks to recover possession of [the] a
     5  housing accommodation for his or her own use and occupancy  or  for  the
     6  use  and  occupancy of his or her immediate family shall permit recovery
     7  of only one housing accommodation, shall require that  an  owner  demon-
     8  strate  immediate and compelling need and that the housing accommodation
     9  will be the proposed occupants' primary residence and  shall  not  apply
    10  where a member of the housing accommodation is sixty-two years of age or
    11  older, has been a tenant in a housing accommodation in that building for
    12  [twenty]  fifteen years or more, or has an impairment which results from
    13  anatomical,  physiological  or  psychological  conditions,  other   than
    14  addiction  to  alcohol, gambling, or any controlled substance, which are
    15  demonstrable by medically acceptable clinical and laboratory  diagnostic
    16  techniques, and which are expected to be permanent and which prevent the
    17  tenant  from  engaging  in any substantial gainful employment; provided,
    18  however, that a tenant required to surrender a housing accommodation  by
    19  virtue  of  the operation of subdivision g or h of section 26-408 of the
    20  administrative code of the city of New York shall have a cause of action
    21  in any court of competent jurisdiction  for  damages,  declaratory,  and
    22  injunctive  relief  against  a landlord or purchaser of the premises who
    23  makes a fraudulent statement regarding a proposed  use  of  the  housing
    24  accommodation.  In  any  action  or  proceeding brought pursuant to this
    25  subdivision a prevailing tenant shall be entitled to recovery of  actual
    26  damages, and reasonable attorneys' fees.
    27    § 4. Paragraph (a) of subdivision 2 of section 5 of chapter 274 of the
    28  laws  of  1946,  constituting the emergency housing rent control law, as
    29  amended by chapter 234 of the laws  of  1984,  is  amended  to  read  as
    30  follows:
    31    (a)  the landlord seeks in good faith to recover possession of a hous-
    32  ing [accommodations] accommodation because of immediate  and  compelling
    33  necessity  for  his  or her own personal use and occupancy as his or her
    34  primary residence or for the use and occupancy of his or  her  immediate
    35  family  as  their primary residence; provided, however, this subdivision
    36  shall permit recovery of only one housing accommodation  and  shall  not
    37  apply  where  a  member  of the household lawfully occupying the housing
    38  accommodation is sixty-two years of age or older, has been a tenant in a
    39  housing accommodation in that building for  [twenty]  fifteen  years  or
    40  more,  or has an impairment which results from anatomical, physiological
    41  or psychological conditions, other than addiction to alcohol,  gambling,
    42  or any controlled substance, which are demonstrable by medically accept-
    43  able  clinical  and  laboratory  diagnostic  techniques,  and  which are
    44  expected to be permanent and which prevent the tenant from  engaging  in
    45  any  substantial  gainful  employment;  provided, however, that a tenant
    46  required to surrender a housing accommodation by virtue of the operation
    47  of subdivision g or h of section 26-408 of the  administrative  code  of
    48  the city of New York shall have a cause of action in any court of compe-
    49  tent  jurisdiction  for  damages,  declaratory,  and  injunctive  relief
    50  against a landlord or purchaser of the premises who makes  a  fraudulent
    51  statement  regarding a proposed use of the housing accommodation. In any
    52  action or proceeding brought pursuant to  this  paragraph  a  prevailing
    53  tenant  shall  be entitled to recovery of actual damages, and reasonable
    54  attorneys' fees; or
    55    § 5. This act shall take effect immediately and  shall  apply  to  any
    56  tenant in possession at or after the time it takes effect, regardless of

        S. 6458                            22                            A. 8281

     1  whether  the  landlord's  application  for  an order, refusal to renew a
     2  lease or refusal to extend or renew a tenancy took place before this act
     3  shall have taken effect, provided that:
     4    a.  the  amendments  to  section 26-408 of the city rent and rehabili-
     5  tation law made by section one of this act shall remain  in  full  force
     6  and effect only as long as the public emergency requiring the regulation
     7  and control of residential rents and evictions continues, as provided in
     8  subdivision  3  of section 1 of the local emergency housing rent control
     9  act; and
    10    b. the amendments to section 26-511 of the rent stabilization  law  of
    11  nineteen hundred sixty-nine made by section two of this act shall expire
    12  on the same date as such law expires and shall not affect the expiration
    13  of such law as provided under section 26-520 of such law.

    14                                   PART J

    15    Section  1.  Paragraph  10  and  11  of  subdivision a of section 5 of
    16  section 4 of chapter 576 of the laws of 1974, constituting the emergency
    17  tenant protection act of nineteen seventy-four, paragraph 11 as  amended
    18  by chapter 422 of the laws of 2010, are amended to read as follows:
    19    (10)  housing  accommodations  in  buildings  operated exclusively for
    20  charitable purposes on a non-profit basis except for  permanent  housing
    21  accommodations  with government contracted services, as of and after the
    22  effective date of the chapter of the laws of two thousand nineteen  that
    23  amended  this  paragraph,  to vulnerable individuals or individuals with
    24  disabilities who are or  were  homeless  or  at  risk  of  homelessness;
    25  provided, however, that terms of leases in existence as of the effective
    26  date  of  the  chapter of the laws of two thousand nineteen that amended
    27  this paragraph, shall only be affected upon lease renewal,  and  further
    28  provided  that  upon the vacancy of such housing accommodations shall be
    29  the legal regulated rent paid for such  housing  accommodations  by  the
    30  prior  tenant,  subject only to any adjustment adopted by the applicable
    31  rent guidelines board;
    32    (11) housing accommodations which are not occupied by the tenant,  not
    33  including  subtenants  or occupants, as his or her primary residence, as
    34  determined by a court of competent jurisdiction.  For  the  purposes  of
    35  determining  primary  residency,  a  tenant  who is a victim of domestic
    36  violence, as defined in section four hundred fifty-nine-a of the  social
    37  services  law,  who  has left the unit because of such violence, and who
    38  asserts an intent to return to the housing accommodation shall be deemed
    39  to be occupying the unit as  his  or  her  primary  residence.  For  the
    40  purposes of this paragraph, where a housing accommodation is rented to a
    41  not-for-profit  hospital  for  residential  use,  affiliated  subtenants
    42  authorized to use such accommodations by such hospital shall  be  deemed
    43  to  be  tenants.    For  the purposes of this paragraph, where a housing
    44  accommodation is rented to a not-for-profit for  providing,  as  of  and
    45  after  the  effective  date  of  the chapter of the laws of two thousand
    46  nineteen that amended this paragraph, permanent housing  to  individuals
    47  who  are or were homeless or at risk of homelessness, affiliated subten-
    48  ants authorized to use such accommodations by such not-for-profit  shall
    49  be  deemed  to  be  tenants.  No action or proceeding shall be commenced
    50  seeking to recover possession on the ground that a housing accommodation
    51  is not occupied by the tenant as his or her primary residence unless the
    52  owner or lessor shall have given thirty days notice to the tenant of his
    53  or her intention to commence such action or proceeding on such grounds.
    54    § 2. This act shall take effect immediately.

        S. 6458                            23                            A. 8281

     1                                   PART K

     2    Section  1.  Paragraph 1 of subdivision d of section 6 of section 4 of
     3  chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
     4  protection  act  of  nineteen  seventy-four, as amended by section 18 of
     5  part B of chapter 97 of the laws of 2011, is amended to read as follows:
     6    (1) there has been a substantial modification or increase of  dwelling
     7  space [or an increase in the services], or installation of new equipment
     8  or  improvements  or  new  furniture or furnishings, provided in or to a
     9  tenant's housing accommodation, on written informed  tenant  consent  to
    10  the  rent  increase.    In  the  case of a vacant housing accommodation,
    11  tenant consent  shall  not  be  required.    The  [permanent]  temporary
    12  increase  in  the legal regulated rent for the affected housing accommo-
    13  dation shall be [one-fortieth] one-one hundred sixty-eighth, in the case
    14  of a building with thirty-five  or  fewer  housing  accommodations[,  or
    15  one-sixtieth,]  or  one-one  hundred eightieth in the case of a building
    16  with more than thirty-five housing accommodations where such [permanent]
    17  increase takes effect on or after [September twenty-fourth, two thousand
    18  eleven, of the total cost incurred by the  landlord  in  providing  such
    19  modification   or  increase  in  dwelling  space,  services,  furniture,
    20  furnishings or  equipment,  including  the  cost  of  installation,  but
    21  excluding finance charges] the effective date of the chapter of the laws
    22  of two thousand nineteen that amended this paragraph, of the total actu-
    23  al  cost  incurred  by  the  landlord  up to fifteen thousand dollars in
    24  providing such reasonable and verifiable  modification  or  increase  in
    25  dwelling space, furniture, furnishings, or equipment, including the cost
    26  of  installation but excluding finance charges and any costs that exceed
    27  reasonable costs established by rules and regulations promulgated by the
    28  division of housing and community renewal. Such  rules  and  regulations
    29  shall include: (i) requirements for work to be done by licensed contrac-
    30  tors  and a prohibition on common ownership between the landlord and the
    31  contractor or vendor; and (ii) a  requirement  that  the  owner  resolve
    32  within  the  dwelling  space  all  outstanding  hazardous or immediately
    33  hazardous violations of the Uniform Fire Prevention  and  Building  Code
    34  (Uniform  Code),  New York City Fire Code, or New York City Building and
    35  Housing Maintenance Codes, if applicable. Provided further that an owner
    36  who is entitled to a rent increase pursuant to this paragraph shall  not
    37  be  entitled  to  a further rent increase based upon the installation of
    38  similar equipment, or new furniture or  furnishings  within  the  useful
    39  life  of  such  new equipment, or new furniture or furnishings. Provided
    40  further that the recoverable costs incurred by the landlord, pursuant to
    41  this paragraph, shall be limited to an aggregate cost of  fifteen  thou-
    42  sand  dollars  that may be expended on no more than three separate indi-
    43  vidual apartment improvements in a fifteen year period. Provided further
    44  that increases to the legal regulated rent pursuant  to  this  paragraph
    45  shall  be  removed  from  the legal regulated rent thirty years from the
    46  date the increase became effective inclusive of any increases granted by
    47  the applicable rent guidelines board.
    48    § 2. Paragraph 13 of subdivision c of section 26-511 of  the  adminis-
    49  trative code of the city of New York, as amended by section 16 of part B
    50  of chapter 97 of the laws of 2011, is amended to read as follows:
    51    (13) provides that an owner is entitled to a rent increase where there
    52  has been a substantial modification or increase of dwelling space [or an
    53  increase  in the services], or installation of new equipment or improve-
    54  ments or new furniture or furnishings provided in or to a tenant's hous-
    55  ing accommodation, on  written  informed  tenant  consent  to  the  rent

        S. 6458                            24                            A. 8281

     1  increase.  In the case of a vacant housing accommodation, tenant consent
     2  shall not be required. The [permanent] temporary increase in  the  legal
     3  regulated rent for the affected housing accommodation shall be [one-for-
     4  tieth,]  one-one  hundred  sixty-eighth,  in the case of a building with
     5  thirty-five or fewer housing accommodations[, or one-sixtieth,] or  one-
     6  one  hundred  eightieth in the case of a building with more than thirty-
     7  five housing accommodations where such [permanent] increase takes effect
     8  on or after [September twenty-fourth, two thousand eleven, of the  total
     9  cost incurred by the landlord in providing such modification or increase
    10  in  dwelling  space,  services,  furniture,  furnishings  or  equipment,
    11  including the cost of installation, but excluding finance  charges]  the
    12  effective  date of the chapter of the laws of two thousand nineteen that
    13  amended this paragraph, of the total actual cost incurred by  the  land-
    14  lord  in  providing  such  reasonable  and  verifiable  modification  or
    15  increase  in  dwelling  space,  furniture,  furnishings,  or  equipment,
    16  including the cost of installation but excluding finance charges and any
    17  costs  that exceed reasonable costs established by rules and regulations
    18  promulgated by the division of housing and community renewal. Such rules
    19  and regulations shall include: (i) requirements for work to be  done  by
    20  licensed  contractors and prohibit common ownership between the landlord
    21  and the contractor or vendor; and (ii)  a  requirement  that  the  owner
    22  resolve  within  the  dwelling  space all outstanding hazardous or imme-
    23  diately hazardous violations of the Uniform Fire Prevention and Building
    24  Code (Uniform Code), New York City Fire Code, or New York City  Building
    25  and  Housing  Maintenance Codes, if applicable. Provided further that an
    26  owner who is entitled to a rent  increase  pursuant  to  this  paragraph
    27  shall  not be entitled to a further rent increase based upon the instal-
    28  lation of similar equipment, or new furniture or furnishings within  the
    29  useful  life  of  such  new  equipment, or new furniture or furnishings.
    30  Provided further that the recoverable costs incurred  by  the  landlord,
    31  pursuant  to  this  paragraph,  shall be limited to an aggregate cost of
    32  fifteen thousand dollars that may be expended  on  no  more  than  three
    33  separate  individual  apartment  improvements  in a fifteen year period.
    34  Provided further that increases to the legal regulated rent pursuant  to
    35  this  paragraph  shall  be  removed from the legal regulated rent thirty
    36  years from the date the  increase  became  effective  inclusive  of  any
    37  increases granted by the applicable rent guidelines board.
    38    §  3.  Subparagraph  (e)  of  paragraph  1 of subdivision g of section
    39  26-405 of the administrative code of the city of New York, as amended by
    40  section 15 of part B of chapter 97 of the laws of 2011,  is  amended  to
    41  read as follows:
    42    (e)  The  landlord  and  tenant  by mutual voluntary written agreement
    43  demonstrating informed  consent  agree  to  a  substantial  increase  or
    44  decrease  in  dwelling  space  or a change in [the services,] furniture,
    45  furnishings or equipment provided  in  the  housing  accommodations.  An
    46  adjustment  under  this  subparagraph  shall  be equal to [one-fortieth]
    47  one-one hundred sixty-eighth, in the case of a building with thirty-five
    48  or fewer housing accommodations[, or one-sixtieth,] or  one-one  hundred
    49  eightieth  in  the case of a building with more than thirty-five housing
    50  accommodations where such temporary adjustment takes effect on or  after
    51  [September  twenty-fourth,  two  thousand  eleven,  of  the  total  cost
    52  incurred by the landlord in providing such modification or  increase  in
    53  dwelling space, services, furniture, furnishings or equipment, including
    54  the  cost  of installation, but excluding finance charges, provided] the
    55  effective date of the chapter of the laws of two thousand nineteen  that
    56  amended  this  subparagraph,  of  the  total actual cost incurred by the

        S. 6458                            25                            A. 8281

     1  landlord in providing such reasonable  and  verifiable  modification  or
     2  increase  in  dwelling  space,  furniture,  furnishings,  or  equipment,
     3  including the cost of installation but excluding finance charges and any
     4  costs  that exceed reasonable costs established by rules and regulations
     5  promulgated by the division of housing and community renewal. Such rules
     6  and regulations shall include: (i) requirements for work to be  done  by
     7  licensed  contractors and prohibit common ownership between the landlord
     8  and the contractor or vendor; and (ii)  a  requirement  that  the  owner
     9  resolve  within  the  dwelling  space all outstanding hazardous or imme-
    10  diately hazardous violations of the Uniform Fire Prevention and Building
    11  Code (Uniform Code), New York City Fire Code, or New York City  Building
    12  and  Housing Maintenance Codes, if applicable.  Provided further that an
    13  owner who is entitled to a rent increase pursuant to  this  subparagraph
    14  shall  not be entitled to a further rent increase based upon the instal-
    15  lation of similar equipment, or new furniture or furnishings within  the
    16  useful  life  of  such  new  equipment, or new furniture or furnishings.
    17  Provided further that the recoverable costs incurred  by  the  landlord,
    18  pursuant  to  this subparagraph shall be limited to an aggregate cost of
    19  fifteen thousand dollars that may be expended  on  no  more  than  three
    20  separate  individual  apartment  improvements  in a fifteen year period.
    21  Provided further that increases to the legal regulated rent pursuant  to
    22  this  subparagraph shall be removed from the legal regulated rent thirty
    23  years from the date the  increase  became  effective  inclusive  of  any
    24  increases  granted  by  the  applicable rent guidelines board. The owner
    25  shall give written notice to the city rent agency of any such  temporary
    26  adjustment pursuant to this subparagraph; or
    27    §  4.  The  administrative  code of the city of New York is amended by
    28  adding a new section 26-511.1 to read as follows:
    29    § 26-511.1 Major  capital  improvements   and   individual   apartment
    30  improvements  in  rent  regulated  units. a.   Notwithstanding any other
    31  provision of law to the contrary, the division of housing and  community
    32  renewal, the "division", shall promulgate rules and regulations applica-
    33  ble to all rent regulated units that shall:
    34    (1)  establish  a  schedule  of  reasonable  costs  for  major capital
    35  improvements, which shall set  a  ceiling  for  what  can  be  recovered
    36  through  a  temporary  major  capital improvement increase, based on the
    37  type of improvement and its rate of depreciation;
    38    (2) establish the criteria for eligibility of a temporary major  capi-
    39  tal  improvement increase including the type of improvement, which shall
    40  be essential for the preservation, energy efficiency,  functionality  or
    41  infrastructure  of  the  entire  building,  including  heating, windows,
    42  plumbing and roofing, but shall not be for operational costs or unneces-
    43  sary cosmetic improvements. Allowable improvements must additionally  be
    44  depreciable  pursuant  to  the  Internal Revenue Service, other than for
    45  ordinary repairs, that directly or indirectly benefit all  tenants;  and
    46  no  increase  shall be approved for group work done in individual apart-
    47  ments that is otherwise not an improvement to an entire  building.  Only
    48  such  costs  that are actual, reasonable, and verifiable may be approved
    49  as a temporary major capital improvement increase;
    50    (3) require that any  temporary  major  capital  improvement  increase
    51  granted  pursuant  to  these provisions be reduced by an amount equal to
    52  (i) any governmental grant received by the landlord,  where  such  grant
    53  compensates  the landlord for any improvements required by a city, state
    54  or federal government, an agency or any granting governmental entity  to
    55  be  expended for improvements and (ii) any insurance payment received by

        S. 6458                            26                            A. 8281

     1  the landlord where such insurance payment compensates the  landlord  for
     2  any part of the costs of the improvements;
     3    (4)  prohibit temporary major capital improvement increases for build-
     4  ings with outstanding hazardous or immediately hazardous  violations  of
     5  the  Uniform  Fire Prevention and Building Code (Uniform Code), New York
     6  City Fire Code, or New York City Building and Housing Maintenance Codes,
     7  if applicable;
     8    (5) prohibit individual apartment improvement  increases  for  housing
     9  accommodations  with  outstanding  hazardous  or  immediately  hazardous
    10  violations of the Uniform Fire Prevention  and  Building  Code  (Uniform
    11  Code),  New  York  City Fire Code, or New York City Building and Housing
    12  Maintenance Codes, if applicable;
    13    (6) prohibit temporary major capital improvement increases for  build-
    14  ings with thirty-five per centum or fewer rent-regulated units;
    15    (7) establish that temporary major capital improvement increases shall
    16  be  fixed  to  the  unit  and shall cease thirty years from the date the
    17  increase became effective. Temporary major capital improvement increases
    18  shall be added to the legal regulated rent as a temporary  increase  and
    19  shall  be  removed  from  the legal regulated rent thirty years from the
    20  date the increase became effective inclusive of any increases granted by
    21  the local rent guidelines board;
    22    (8) establish that temporary major capital improvement increases shall
    23  be collectible prospectively sixty days from the date of mailing  notice
    24  of  approval to the tenant. Such notice shall disclose the total monthly
    25  increase in rent and the first  month  in  which  the  tenant  would  be
    26  required  to  pay  the  temporary  increase. An approval for a temporary
    27  major  capital  improvement  increase  shall  not  include   retroactive
    28  payments. The collection of any increase shall not exceed two percent in
    29  any year from the effective date of the order granting the increase over
    30  the  rent  set forth in the schedule of gross rents, with collectability
    31  of any dollar excess above said sum to  be  spread  forward  in  similar
    32  increments  and added to the rent as established or set in future years.
    33  Upon vacancy, the landlord may add any remaining balance of  the  tempo-
    34  rary  major  capital  improvement  increase to the legal regulated rent.
    35  Notwithstanding any other provision of the law, the  collection  of  any
    36  rent  increases  due  to  any  major capital improvements approved on or
    37  after June 16, 2012 and before  June  16,  2019  shall  not  exceed  two
    38  percent  in  any  year  beginning  on or after September 1, 2019 for any
    39  tenant in occupancy on  the  date  the  major  capital  improvement  was
    40  approved;
    41    (9)  ensure that the application procedure for temporary major capital
    42  improvement increases shall include an itemized list of  work  performed
    43  and a description or explanation of the reason or purpose of such work;
    44    (10)  provide,  that where an application for a major capital improve-
    45  ment rent increase has been filed, a tenant shall have sixty  days  from
    46  the  date  of  mailing of a notice of a proceeding in which to answer or
    47  reply;
    48    (11) establish a notification and documentation procedure for individ-
    49  ual apartment improvements  that  requires  an  itemized  list  of  work
    50  performed  and  a description or explanation of the reason or purpose of
    51  such work, inclusive of photographic evidence documenting the  condition
    52  prior to and after the completion of the performed work. Provide for the
    53  centralized  electronic  retention  of  such documentation and any other
    54  supporting documentation to be made available in cases pertaining to the
    55  adjustment of legal regulated rents; and

        S. 6458                            27                            A. 8281

     1    (12) establish a form for a temporary individual apartment improvement
     2  rent increase for a tenant in occupancy which shall be used by landlords
     3  to obtain written informed consent  that  shall  include  the  estimated
     4  total  cost  of the improvement and the estimated monthly rent increase.
     5  Such  consent  shall  be executed in the tenant's primary language. Such
     6  form shall be completed and  preserved  in  the  centralized  electronic
     7  retention  system.  Nothing  herein shall relieve a landlord, lessor, or
     8  agent thereof of his or her duty to retain proper documentation  of  all
     9  improvements  performed  or  any  rent  increases  resulting  from  said
    10  improvements.
    11    b. The division shall establish an annual inspection and audit process
    12  which shall review twenty-five percent of applications for  a  temporary
    13  major   capital  improvement  increase  that  have  been  submitted  and
    14  approved. Such process shall include individual inspections and document
    15  review to ensure that owners complied with all obligations and responsi-
    16  bilities  under  the  law  for  temporary  major   capital   improvement
    17  increases.    Inspections shall include in-person confirmation that such
    18  improvements have been completed in such way as described in the  appli-
    19  cation.
    20    c.  The  division  shall  issue  a  notice to the landlord and all the
    21  tenants sixty days prior to the  end  of  the  temporary  major  capital
    22  improvement increase and shall include the initial approved increase and
    23  the  total  amount to be removed from the legal regulated rent inclusive
    24  of any increases granted by the applicable rent guidelines board.
    25    § 5. The administrative code of the city of New  York  is  amended  by
    26  adding a new section 26-405.1 to read as follows:
    27    § 26-405.1 Major   capital   improvements   and  individual  apartment
    28  improvements in rent regulated units.  a.    Notwithstanding  any  other
    29  provision  of law to the contrary, the division of housing and community
    30  renewal, the "division", shall promulgate rules and regulations applica-
    31  ble to all rent regulated units that shall:
    32    (1) establish  a  schedule  of  reasonable  costs  for  major  capital
    33  improvements,  which  shall  set  a  ceiling  for  what can be recovered
    34  through a temporary major capital improvement  increase,  based  on  the
    35  type of improvement and its rate of depreciation;
    36    (2)  establish the criteria for eligibility of a temporary major capi-
    37  tal improvement increase including the type of improvement, which  shall
    38  be  essential  for the preservation, energy efficiency, functionality or
    39  infrastructure of  the  entire  building,  including  heating,  windows,
    40  plumbing and roofing, but shall not be for operational costs or unneces-
    41  sary  cosmetic improvements. Allowable improvements must additionally be
    42  depreciable pursuant to the Internal Revenue  Service,  other  than  for
    43  ordinary  repairs,  that directly or indirectly benefit all tenants; and
    44  no increase shall be approved for group work done in  individual  apart-
    45  ments  that  is otherwise not an improvement to an entire building. Only
    46  such costs that are actual, reasonable, and verifiable may  be  approved
    47  as a temporary major capital improvement increase;
    48    (3)  require  that  any  temporary  major capital improvement increase
    49  granted pursuant to these provisions be reduced by an  amount  equal  to
    50  (i)  any  governmental  grant received by the landlord, where such grant
    51  compensates the landlord for any improvements required by a city,  state
    52  or  federal government, an agency or any granting governmental entity to
    53  be expended for improvements and (ii) any insurance payment received  by
    54  the  landlord  where such insurance payment compensates the landlord for
    55  any part of the costs of the improvements;

        S. 6458                            28                            A. 8281

     1    (4) prohibit temporary major capital improvement increases for  build-
     2  ings  with  outstanding hazardous or immediately hazardous violations of
     3  the Uniform Fire Prevention and Building Code (Uniform Code),  New  York
     4  City Fire Code, or New York City Building and Housing Maintenance Codes,
     5  if applicable;
     6    (5)  prohibit  individual  apartment improvement increases for housing
     7  accommodations  with  outstanding  hazardous  or  immediately  hazardous
     8  violations  of  the  Uniform  Fire Prevention and Building Code (Uniform
     9  Code), New York City Fire Code, or New York City  Building  and  Housing
    10  Maintenance Codes, if applicable;
    11    (6)  prohibit temporary major capital improvement increases for build-
    12  ings with thirty-five per centum or fewer rent-regulated units;
    13    (7) establish that temporary major capital improvement increases shall
    14  be fixed to the unit and shall cease thirty  years  from  the  date  the
    15  increase became effective. Temporary major capital improvement increases
    16  shall  be  added to the legal regulated rent as a temporary increase and
    17  shall be removed from the legal regulated rent  thirty  years  from  the
    18  date the increase became effective inclusive of any increases granted by
    19  the local rent guidelines board;
    20    (8) establish that temporary major capital improvement increases shall
    21  be  collectible prospectively sixty days from the date of mailing notice
    22  of approval to the tenant. Such notice shall disclose the total  monthly
    23  increase  in  rent  and  the  first  month  in which the tenant would be
    24  required to pay the temporary increase.  An  approval  for  a  temporary
    25  major   capital  improvement  increase  shall  not  include  retroactive
    26  payments. The collection of any increase shall not exceed two percent in
    27  any year from the effective date of the order granting the increase over
    28  the rent set forth in the schedule of gross rents,  with  collectability
    29  of  any  dollar  excess  above  said sum to be spread forward in similar
    30  increments and added to the rent as established or set in future  years.
    31  Upon  vacancy,  the landlord may add any remaining balance of the tempo-
    32  rary major capital improvement increase to  the  legal  regulated  rent.
    33  Notwithstanding  any  other  provision of the law, the collection of any
    34  rent increases due to any major  capital  improvements  approved  on  or
    35  after  June  16,  2012  and  before  June  16, 2019 shall not exceed two
    36  percent in any year beginning on or after  September  1,  2019  for  any
    37  tenant  in  occupancy  on  the  date  the  major capital improvement was
    38  approved;
    39    (9) ensure that the application procedure for temporary major  capital
    40  improvement  increases  shall include an itemized list of work performed
    41  and a description or explanation of the reason or purpose of such work;
    42    (10) provide, that where an application for a major  capital  improve-
    43  ment  rent  increase has been filed, a tenant shall have sixty days from
    44  the date of mailing of a notice of a proceeding in which  to  answer  or
    45  reply;
    46    (11) establish a notification and documentation procedure for individ-
    47  ual  apartment  improvements  that  requires  an  itemized  list of work
    48  performed and a description or explanation of the reason or  purpose  of
    49  such  work, inclusive of photographic evidence documenting the condition
    50  prior to and after the completion of the performed work. Provide for the
    51  centralized electronic retention of such  documentation  and  any  other
    52  supporting documentation to be made available in cases pertaining to the
    53  adjustment of legal regulated rents; and
    54    (12) establish a form for a temporary individual apartment improvement
    55  rent increase for a tenant in occupancy which shall be used by landlords
    56  to  obtain  written  informed  consent  that shall include the estimated

        S. 6458                            29                            A. 8281

     1  total cost of the improvement and the estimated monthly  rent  increase.
     2  Such  consent  shall  be executed in the tenant's primary language. Such
     3  form shall be completed and  preserved  in  the  centralized  electronic
     4  retention  system.  Nothing  herein shall relieve a landlord, lessor, or
     5  agent thereof of his or her duty to retain proper documentation  of  all
     6  improvements  performed  or  any  rent  increases  resulting  from  said
     7  improvements.
     8    b. The division shall establish an annual inspection and audit process
     9  which shall review twenty-five percent of applications for  a  temporary
    10  major   capital  improvement  increase  that  have  been  submitted  and
    11  approved. Such process shall include individual inspections and document
    12  review to ensure that owners complied with all obligations and responsi-
    13  bilities  under  the  law  for  temporary  major   capital   improvement
    14  increases.  Inspections  shall  include in-person confirmation that such
    15  improvements have been completed in such way as described in the  appli-
    16  cation.
    17    c.  The  division  shall  issue  a  notice to the landlord and all the
    18  tenants sixty days prior to the  end  of  the  temporary  major  capital
    19  improvement increase and shall include the initial approved increase and
    20  the  total  amount to be removed from the legal regulated rent inclusive
    21  of any increases granted by the applicable rent guidelines board.
    22    § 6. Section 4 of chapter 576 of the laws of  1974,  constituting  the
    23  emergency  tenant protection act of nineteen seventy-four, is amended by
    24  adding a new section 10-b to read as follows:
    25    § 10-b. Major capital improvements and individual  apartment  improve-
    26  ments  in rent regulated units.  (a) Notwithstanding any other provision
    27  of law to the contrary, the division of housing and  community  renewal,
    28  the "division", shall promulgate rules and regulations applicable to all
    29  rent regulated units that shall:
    30    1. establish a schedule of reasonable costs for major capital improve-
    31  ments,  which  shall  set  a ceiling for what can be recovered through a
    32  temporary major capital improvement  increase,  based  on  the  type  of
    33  improvement and its rate of depreciation;
    34    2. establish the criteria for eligibility of a temporary major capital
    35  improvement  increase  including the type of improvement, which shall be
    36  essential for the  preservation,  energy  efficiency,  functionality  or
    37  infrastructure  of  the  entire  building,  including  heating, windows,
    38  plumbing and roofing, but shall not be for operational costs or unneces-
    39  sary cosmetic improvements. Allowable improvements must additionally  be
    40  depreciable  pursuant  to  the  Internal Revenue Service, other than for
    41  ordinary repairs, that directly or indirectly benefit all  tenants;  and
    42  no  increase  shall be approved for group work done in individual apart-
    43  ments that is otherwise not an improvement to an entire  building.  Only
    44  such  costs  that are actual, reasonable, and verifiable may be approved
    45  as a temporary major capital improvement increase;
    46    3. require that  any  temporary  major  capital  improvement  increase
    47  granted  pursuant  to  these provisions be reduced by an amount equal to
    48  (i) any governmental grant received by the landlord,  where  such  grant
    49  compensates  the landlord for any improvements required by a city, state
    50  or federal government, an agency or any granting governmental entity  to
    51  be  expended for improvements and (ii) any insurance payment received by
    52  the landlord where such insurance payment compensates the  landlord  for
    53  any part of the costs of the improvements;
    54    4.  prohibit  temporary major capital improvement increases for build-
    55  ings with outstanding hazardous or immediately hazardous  violations  of
    56  the  Uniform  Fire Prevention and Building Code (Uniform Code), New York

        S. 6458                            30                            A. 8281

     1  City Fire Code, or New York City Building and Housing Maintenance Codes,
     2  if applicable;
     3    5.  prohibit  individual  apartment  improvement increases for housing
     4  accommodations  with  outstanding  hazardous  or  immediately  hazardous
     5  violations  of  the  Uniform  Fire Prevention and Building Code (Uniform
     6  Code), New York City Fire Code, or New York City  Building  and  Housing
     7  Maintenance Codes, if applicable;
     8    6.  prohibit  temporary major capital improvement increases for build-
     9  ings with thirty-five per centum or fewer rent-regulated units;
    10    7. establish that temporary major capital improvement increases  shall
    11  be  fixed  to  the  unit  and shall cease thirty years from the date the
    12  increase became effective. Temporary major capital improvement increases
    13  shall be added to the legal regulated rent as a temporary  increase  and
    14  shall  be  removed  from  the legal regulated rent thirty years from the
    15  date the increase became effective inclusive of any increases granted by
    16  the local rent guidelines board;
    17    8. establish that temporary major capital improvement increases  shall
    18  be  collectible prospectively sixty days from the date of mailing notice
    19  of approval to the tenant. Such notice shall disclose the total  monthly
    20  increase  in  rent  and  the  first  month  in which the tenant would be
    21  required to pay the temporary increase.  An  approval  for  a  temporary
    22  major   capital  improvement  increase  shall  not  include  retroactive
    23  payments. The collection of any increase shall not exceed two percent in
    24  any year from the effective date of the order granting the increase over
    25  the rent set forth in the schedule of gross rents,  with  collectability
    26  of  any  dollar  excess  above  said sum to be spread forward in similar
    27  increments and added to the rent as established or set in future  years.
    28  Upon  vacancy,  the landlord may add any remaining balance of the tempo-
    29  rary major capital improvement increase to  the  legal  regulated  rent.
    30  Notwithstanding  any  other  provision of the law, the collection of any
    31  rent increases due to any major  capital  improvements  approved  on  or
    32  after  June  16,  2012  and  before  June  16, 2019 shall not exceed two
    33  percent in any year beginning on or after  September  1,  2019  for  any
    34  tenant  in  occupancy  on  the  date  the  major capital improvement was
    35  approved;
    36    9. ensure that the application procedure for temporary  major  capital
    37  improvement  increases  shall include an itemized list of work performed
    38  and a description or explanation of the reason or purpose of such work;
    39    10.  provide, that where an application for a major  capital  improve-
    40  ment  rent  increase has been filed, a tenant shall have sixty days from
    41  the date of mailing of a notice of a proceeding in which  to  answer  or
    42  reply;
    43    11.  establish a notification and documentation procedure for individ-
    44  ual apartment improvements  that  requires  an  itemized  list  of  work
    45  performed  and  a description or explanation of the reason or purpose of
    46  such work, inclusive of photographic evidence documenting the  condition
    47  prior to and after the completion of the performed work. Provide for the
    48  centralized  electronic  retention  of  such documentation and any other
    49  supporting documentation to be made available in cases pertaining to the
    50  adjustment of legal regulated rents; and
    51    12. establish a form for a temporary individual apartment  improvement
    52  rent increase for a tenant in occupancy which shall be used by landlords
    53  to  obtain  written  informed  consent  that shall include the estimated
    54  total cost of the improvement and the estimated monthly  rent  increase.
    55  Such  consent  shall  be executed in the tenant's primary language. Such
    56  form shall be completed and  preserved  in  the  centralized  electronic

        S. 6458                            31                            A. 8281

     1  retention  system.  Nothing  herein shall relieve a landlord, lessor, or
     2  agent thereof of his or her duty to retain proper documentation  of  all
     3  improvements  performed  or  any  rent  increases  resulting  from  said
     4  improvements.
     5    (b)  The division shall establish an annual inspection and audit proc-
     6  ess which shall review twenty-five percent of applications for a  tempo-
     7  rary  major  capital  improvement  increase that have been submitted and
     8  approved. Such process shall include individual inspections and document
     9  review to ensure that owners complied with all obligations and responsi-
    10  bilities  under  the  law  for  temporary  major   capital   improvement
    11  increases.    Inspections shall include in-person confirmation that such
    12  improvements have been completed in such way as described in the  appli-
    13  cation.
    14    (c)  The  division  shall  issue  a notice to the landlord and all the
    15  tenants sixty days prior to the  end  of  the  temporary  major  capital
    16  improvement increase and shall include the initial approved increase and
    17  the  total  amount to be removed from the legal regulated rent inclusive
    18  of any increases granted by the applicable rent guidelines board.
    19    § 7. Chapter 274 of the laws of 1946, constituting the emergency hous-
    20  ing rent control law, is amended by adding a new section 8-a to read  as
    21  follows:
    22    § 8-a. Major  capital  improvements  and individual apartment improve-
    23  ments in rent regulated units. 1.  Notwithstanding any  other  provision
    24  of  law  to the contrary, the division of housing and community renewal,
    25  the "division", shall promulgate rules and regulations applicable to all
    26  rent regulated units that shall:
    27    (a) establish  a  schedule  of  reasonable  costs  for  major  capital
    28  improvements,  which  shall  set  a  ceiling  for  what can be recovered
    29  through a temporary major capital improvement  increase,  based  on  the
    30  type of improvement and its rate of depreciation;
    31    (b)  establish the criteria for eligibility of a temporary major capi-
    32  tal improvement increase including the type of improvement, which  shall
    33  be  essential  for the preservation, energy efficiency, functionality or
    34  infrastructure of  the  entire  building,  including  heating,  windows,
    35  plumbing and roofing, but shall not be for operational costs or unneces-
    36  sary  cosmetic improvements. Allowable improvements must additionally be
    37  depreciable pursuant to the Internal Revenue  Service,  other  than  for
    38  ordinary  repairs,  that directly or indirectly benefit all tenants; and
    39  no increase shall be approved for group work done in  individual  apart-
    40  ments  that  is otherwise not an improvement to an entire building. Only
    41  such costs that are actual, reasonable, and verifiable may  be  approved
    42  as a temporary major capital improvement increase;
    43    (c)  require  that  any  temporary  major capital improvement increase
    44  granted pursuant to these provisions be reduced by an  amount  equal  to
    45  (i)  any  governmental  grant received by the landlord, where such grant
    46  compensates the landlord for any improvements required by a city,  state
    47  or  federal government, an agency or any granting governmental entity to
    48  be expended for improvements and (ii) any insurance payment received  by
    49  the  landlord  where such insurance payment compensates the landlord for
    50  any part of the costs of the improvements;
    51    (d) prohibit temporary major capital improvement increases for  build-
    52  ings  with  outstanding hazardous or immediately hazardous violations of
    53  the Uniform Fire Prevention and Building Code (Uniform Code),  New  York
    54  City Fire Code, or New York City Building and Housing Maintenance Codes,
    55  if applicable;

        S. 6458                            32                            A. 8281

     1    (e)  prohibit  individual  apartment improvement increases for housing
     2  accommodations  with  outstanding  hazardous  or  immediately  hazardous
     3  violations  of  the  Uniform  Fire Prevention and Building Code (Uniform
     4  Code), New York City Fire Code, or New York City  Building  and  Housing
     5  Maintenance Codes, if applicable;
     6    (f)  prohibit temporary major capital improvement increases for build-
     7  ings with thirty-five per centum or fewer rent-regulated units;
     8    (g) establish that temporary major capital improvement increases shall
     9  be fixed to the unit and shall cease thirty  years  from  the  date  the
    10  increase became effective. Temporary major capital improvement increases
    11  shall  be  added to the legal regulated rent as a temporary increase and
    12  shall be removed from the legal regulated rent  thirty  years  from  the
    13  date the increase became effective inclusive of any increases granted by
    14  the local rent guidelines board;
    15    (h) establish that temporary major capital improvement increases shall
    16  be  collectible prospectively sixty days from the date of mailing notice
    17  of approval to the tenant. Such notice shall disclose the total  monthly
    18  increase  in  rent  and  the  first  month  in which the tenant would be
    19  required to pay the temporary increase.  An  approval  for  a  temporary
    20  major   capital  improvement  increase  shall  not  include  retroactive
    21  payments. The collection of any increase shall not exceed two percent in
    22  any year from the effective date of the order granting the increase over
    23  the rent set forth in the schedule of gross rents,  with  collectability
    24  of  any  dollar  excess  above  said sum to be spread forward in similar
    25  increments and added to the rent as established or set in future  years.
    26  Upon  vacancy,  the landlord may add any remaining balance of the tempo-
    27  rary major capital improvement increases to the  legal  regulated  rent.
    28  Notwithstanding  any  other  provision of the law, the collection of any
    29  rent increases due to any major  capital  improvements  approved  on  or
    30  after  June  16,  2012  and  before  June  16, 2019 shall not exceed two
    31  percent in any year beginning on or after  September  1,  2019  for  any
    32  tenant  in  occupancy  on  the  date  the  major capital improvement was
    33  approved;
    34    (i) ensure that the application procedure for temporary major  capital
    35  improvement  increases  shall include an itemized list of work performed
    36  and a description or explanation of the reason or purpose of such work;
    37    (j) provide, that where an application for a major capital improvement
    38  rent increase has been filed, a tenant shall have sixty  days  from  the
    39  date of mailing of a notice of a proceeding in which to answer or reply;
    40    (k)  establish a notification and documentation procedure for individ-
    41  ual apartment improvements  that  requires  an  itemized  list  of  work
    42  performed  and  a description or explanation of the reason or purpose of
    43  such work, inclusive of photographic evidence documenting the  condition
    44  prior to and after the completion of the performed work. Provide for the
    45  centralized  electronic  retention  of  such documentation and any other
    46  supporting documentation to be made available in cases pertaining to the
    47  adjustment of legal regulated rents; and
    48    (l) establish a form for a temporary individual apartment  improvement
    49  rent increase for a tenant in occupancy which shall be used by landlords
    50  to  obtain  written  informed  consent  that shall include the estimated
    51  total cost of the improvement and the estimated monthly  rent  increase.
    52  Such  consent  shall  be executed in the tenant's primary language. Such
    53  form shall be completed and  preserved  in  the  centralized  electronic
    54  retention  system.  Nothing  herein shall relieve a landlord, lessor, or
    55  agent thereof of his or her duty to retain proper documentation  of  all

        S. 6458                            33                            A. 8281

     1  improvements  performed  or  any  rent  increases  resulting  from  said
     2  improvements.
     3    2. The division shall establish an annual inspection and audit process
     4  which  shall  review twenty-five percent of applications for a temporary
     5  major  capital  improvement  increase  that  have  been  submitted   and
     6  approved. Such process shall include individual inspections and document
     7  review to ensure that owners complied with all obligations and responsi-
     8  bilities   under   the  law  for  temporary  major  capital  improvement
     9  increases.  Inspections shall include in-person confirmation  that  such
    10  improvements  have been completed in such way as described in the appli-
    11  cation.
    12    3. The division shall issue a notice  to  the  landlord  and  all  the
    13  tenants  sixty  days  prior  to  the  end of the temporary major capital
    14  improvement increase and shall include the initial approved increase and
    15  the total amount to be removed from the legal regulated  rent  inclusive
    16  of any increases granted by the applicable rent guidelines board.
    17    §  8.  Paragraph 2 of subdivision 3-a and subparagraphs 7 and 8 of the
    18  second undesignated paragraph of  paragraph  (a)  of  subdivision  4  of
    19  section 4 of chapter 274 of the laws of 1946, constituting the emergency
    20  housing  rent  control law, paragraph 2 of subdivision 3-a as amended by
    21  chapter 337 of the laws of 1961, subparagraph 8 of the  second  undesig-
    22  nated  paragraph of paragraph (a) of subdivision 4 as amended by section
    23  25 of part B of chapter 97 of the laws of 2011 and subparagraph 7 of the
    24  second undesignated paragraph of  paragraph  (a)  of  subdivision  4  as
    25  amended  by  section 32 of part A of chapter 20 of the laws of 2015, are
    26  amended to read as follows:
    27    (2) the amount of  increases  in  maximum  rent  authorized  by  order
    28  because of increases in dwelling space, services, furniture, furnishings
    29  or  equipment[,  or  major  capital  improvements] and the amount of the
    30  temporary increase authorized  by  order  because  of  a  major  capital
    31  improvement.
    32    (7)  there has been since March first, nineteen hundred fifty, a major
    33  capital improvement [required] essential for the [operation,]  preserva-
    34  tion  [or maintenance of the structure], energy efficiency, functionali-
    35  ty, or infrastructure of the entire building, improvement of the  struc-
    36  ture  including heating, windows, plumbing and roofing, but shall not be
    37  for operational costs or unnecessary cosmetic  improvements;  which  for
    38  any  order  of  the  commissioner issued after the effective date of the
    39  [rent act of 2015] chapter of the laws of  two  thousand  nineteen  that
    40  amended  this  paragraph the cost of such improvement shall be amortized
    41  over [an eight-year] a twelve-year period for buildings with thirty-five
    42  or fewer units or a [nine] twelve and one-half year period for buildings
    43  with more than thirty-five units, and shall be removed  from  the  legal
    44  regulated  rent thirty years from the date the increase became effective
    45  inclusive of any increases granted by  the  applicable  rent  guidelines
    46  board.   Temporary major capital improvement increases shall be collect-
    47  ible prospectively sixty  days  from  the  date  of  mailing  notice  of
    48  approval  to  the  tenant.  Such notice shall disclose the total monthly
    49  increase in rent and the first  month  in  which  the  tenant  would  be
    50  required  to  pay  the  temporary  increase. An approval for a temporary
    51  major  capital  improvement  increase  shall  not  include   retroactive
    52  payments. The collection of any increase shall not exceed two percent in
    53  any year from the effective date of the order granting the increase over
    54  the  rent  set forth in the schedule of gross rents, with collectability
    55  of any dollar excess above said sum to  be  spread  forward  in  similar
    56  increments  and added to the rent as established or set in future years.

        S. 6458                            34                            A. 8281

     1  Upon vacancy, the landlord may add any remaining balance of  the  tempo-
     2  rary  major  capital  improvement  increase to the legal regulated rent.
     3  Notwithstanding any other provision of the law, the  collection  of  any
     4  rent  increases  due  to  any  major capital improvements approved on or
     5  after June 16, 2012 and before  June  16,  2019  shall  not  exceed  two
     6  percent  in  any  year  beginning  on or after September 1, 2019 for any
     7  tenant in occupancy on  the  date  the  major  capital  improvement  was
     8  approved;  or  (8)  there  has  been since March first, nineteen hundred
     9  fifty, in structures containing more than four  housing  accommodations,
    10  other improvements made with the express informed consent of the tenants
    11  in occupancy of at least seventy-five per centum of the housing accommo-
    12  dations,  provided,  however, that no adjustment granted hereunder shall
    13  exceed [fifteen] two per centum unless the  tenants  have  agreed  to  a
    14  higher percentage of increase, as herein provided;
    15    § 9. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
    16  576  of  the  laws of 1974, constituting the emergency tenant protection
    17  act of nineteen seventy-four, as amended by section  30  of  part  A  of
    18  chapter 20 of the laws of 2015, is amended to read as follows:
    19    (3)  there has been since January first, nineteen hundred seventy-four
    20  a major capital improvement [required for the operation, preservation or
    21  maintenance of the structure] essential  for  the  preservation,  energy
    22  efficiency,  functionality,  or  infrastructure  of the entire building,
    23  improvement of the structure including heating,  windows,  plumbing  and
    24  roofing,  but  shall  not be for operation costs or unnecessary cosmetic
    25  improvements. An adjustment under this paragraph shall be in  an  amount
    26  sufficient  to  amortize  the  cost of the improvements pursuant to this
    27  paragraph over [an eight-year] a twelve-year period for a building  with
    28  thirty-five or fewer housing accommodations, or a [nine-year] twelve and
    29  one-half period for a building with more than thirty-five housing accom-
    30  modations  and  shall  be  removed  from the legal regulated rent thirty
    31  years from the date the  increase  became  effective  inclusive  of  any
    32  increases  granted  by  the  applicable  rent  guidelines board, for any
    33  determination issued by the division of housing  and  community  renewal
    34  after  the  effective date of the [rent act of 2015] chapter of the laws
    35  of two thousand nineteen that amended this paragraph; the collection  of
    36  any increase shall not exceed two percent in any year from the effective
    37  date  of  the order granting the increase over the rent set forth in the
    38  schedule of gross rents, with collectability of any dollar excess  above
    39  said  sum  to  be  spread forward in similar increments and added to the
    40  rent as established or set in future years.  Upon vacancy, the  landlord
    41  may add any remaining balance of the temporary major capital improvement
    42  increase   to  the  legal  regulated  rent.  Notwithstanding  any  other
    43  provision of the law, the collection of any rent increases  due  to  any
    44  major capital improvements approved on or after June 16, 2012 and before
    45  June  16,  2019 shall not exceed two percent in any year beginning on or
    46  after September 1, 2019 for any tenant in  occupancy  on  the  date  the
    47  major capital improvement was approved, or
    48    §  10.  Subparagraph  (g)  of  paragraph 1 of subdivision g of section
    49  26-405 of the administrative code of the city of New York, as amended by
    50  section 31 of part A of chapter 20 of the laws of 2015,  is  amended  to
    51  read as follows:
    52    (g) There has been since July first, nineteen hundred seventy, a major
    53  capital  improvement [required] essential for the [operation,] preserva-
    54  tion [or maintenance of the structure] energy efficiency, functionality,
    55  or infrastructure of the entire building, improvement of  the  structure
    56  including  heating,  windows,  plumbing and roofing but shall not be for

        S. 6458                            35                            A. 8281

     1  operational costs or unnecessary cosmetic improvements.  [An adjustment]
     2  The temporary increase based upon a major capital improvement under this
     3  subparagraph [(g)] for any order of the commissioner  issued  after  the
     4  effective  date  of  the  [rent  act of 2015] chapter of the laws of two
     5  thousand nineteen that amended this subparagraph shall be in  an  amount
     6  sufficient  to  amortize  the  cost of the improvements pursuant to this
     7  subparagraph (g) over [an eight-year] a twelve-year period for buildings
     8  with thirty-five or fewer units or a [nine]  twelve  and  one-half  year
     9  period  for  buildings  with  more  than thirty-five units, and shall be
    10  removed from the legal regulated rent thirty years  from  the  date  the
    11  increase  became  effective  inclusive  of  any increases granted by the
    12  applicable rent guidelines board.  Temporary major  capital  improvement
    13  increases shall be collectible prospectively sixty days from the date of
    14  mailing notice of approval to the tenant. Such notice shall disclose the
    15  total  monthly  increase in rent and the first month in which the tenant
    16  would be required to pay the  temporary  increase.  An  approval  for  a
    17  temporary  major capital improvement increase shall not include retroac-
    18  tive payments. The collection of  any  increase  shall  not  exceed  two
    19  percent  in  any  year from the effective date of the order granting the
    20  increase over the rent set forth in the schedule of  gross  rents,  with
    21  collectability  of any dollar excess above said sum to be spread forward
    22  in similar increments and added to the rent as  established  or  set  in
    23  future  years.  Upon vacancy, the landlord may add any remaining balance
    24  of the temporary major capital improvement increase to the  legal  regu-
    25  lated  rent.  Notwithstanding  any  other  provision  of  the  law,  the
    26  collection of any rent increases due to any major  capital  improvements
    27  approved  on  or  after June 16, 2012 and before June 16, 2019 shall not
    28  exceed two percent in any year beginning on or after September  1,  2019
    29  for  any  tenant  in occupancy on the date the major capital improvement
    30  was approved, or
    31    § 11. Paragraph 6 of subdivision c of section 26-511 of  the  adminis-
    32  trative code of the city of New York, as amended by section 29 of part A
    33  of chapter 20 of the laws of 2015, is amended to read as follows:
    34    (6)  provides  criteria whereby the commissioner may act upon applica-
    35  tions by owners for increases in  excess  of  the  level  of  fair  rent
    36  increase  established under this law provided, however, that such crite-
    37  ria shall provide (a) as to hardship applications, for  a  finding  that
    38  the level of fair rent increase is not sufficient to enable the owner to
    39  maintain  approximately  the same average annual net income (which shall
    40  be computed without regard to debt service, financing costs  or  manage-
    41  ment  fees)  for the three year period ending on or within six months of
    42  the date of an application pursuant to such criteria  as  compared  with
    43  annual  net income, which prevailed on the average over the period nine-
    44  teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
    45  first three years of operation if the building was completed since nine-
    46  teen  hundred  sixty-eight  or  for the first three fiscal years after a
    47  transfer of title to a new owner provided the new owner can establish to
    48  the satisfaction of the commissioner that he or she  acquired  title  to
    49  the  building as a result of a bona fide sale of the entire building and
    50  that the new owner is unable to obtain requisite records for the  fiscal
    51  years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
    52  despite diligent efforts to obtain same from predecessors in  title  and
    53  further  provided that the new owner can provide financial data covering
    54  a minimum of six years under his or  her  continuous  and  uninterrupted
    55  operation  of  the building to meet the three year to three year compar-
    56  ative test periods herein provided; and (b) as  to  completed  building-

        S. 6458                            36                            A. 8281

     1  wide  major  capital  improvements, for a finding that such improvements
     2  are deemed depreciable under the Internal Revenue Code and that the cost
     3  is to be amortized over [an  eight-year]  a  twelve-year  period  for  a
     4  building  with  thirty-five or fewer housing accommodations, or a [nine-
     5  year] twelve and one-half-year period for  a  building  with  more  than
     6  thirty-five  housing accommodations, for any determination issued by the
     7  division of housing and community renewal after the  effective  date  of
     8  the [rent act of 2015,] the chapter of the laws of two thousand nineteen
     9  that  amended  this  paragraph and shall be removed from the legal regu-
    10  lated rent thirty years from the  date  the  increase  became  effective
    11  inclusive  of  any  increases  granted by the applicable rent guidelines
    12  board.  Temporary major capital improvement increases shall be  collect-
    13  ible  prospectively  sixty  days  from  the  date  of  mailing notice of
    14  approval to the tenant. Such notice shall  disclose  the  total  monthly
    15  increase  in  rent  and  the  first  month  in which the tenant would be
    16  required to pay the temporary increase.  An  approval  for  a  temporary
    17  major   capital  improvement  increase  shall  not  include  retroactive
    18  payments. The collection of any increase shall not exceed two percent in
    19  any year from the effective date of the order granting the increase over
    20  the rent set forth in the schedule of gross rents,  with  collectability
    21  of  any  dollar  excess  above  said sum to be spread forward in similar
    22  increments and added to the rent as established or set in future  years.
    23  Upon  vacancy,  the landlord may add any remaining balance of the tempo-
    24  rary major capital improvement increase to  the  legal  regulated  rent.
    25  Notwithstanding  any  other  provision of the law, the collection of any
    26  rent increases due to any major  capital  improvements  approved  on  or
    27  after  June  16,  2012  and  before  June  16, 2019 shall not exceed two
    28  percent in any year beginning on or after  September  1,  2019  for  any
    29  tenant  in  occupancy  on  the  date  the  major capital improvement was
    30  approved or based upon cash purchase  price  exclusive  of  interest  or
    31  service  charges.  Notwithstanding  anything  to  the contrary contained
    32  herein, no hardship increase granted pursuant to this  paragraph  shall,
    33  when added to the annual gross rents, as determined by the commissioner,
    34  exceed  the sum of, (i) the annual operating expenses, (ii) an allowance
    35  for management services as determined by the commissioner, (iii)  actual
    36  annual  mortgage debt service (interest and amortization) on its indebt-
    37  edness to a lending institution, an insurance company, a retirement fund
    38  or welfare fund which is operated under the supervision of  the  banking
    39  or  insurance  laws  of  the state of New York or the United States, and
    40  (iv) eight and one-half percent of that portion of the fair market value
    41  of the property which exceeds the unpaid principal amount of  the  mort-
    42  gage  indebtedness  referred to in subparagraph (iii) of this paragraph.
    43  Fair market value for the purposes of this paragraph shall be six  times
    44  the  annual gross rent. The collection of any increase in the stabilized
    45  rent for any apartment pursuant to this paragraph shall not  exceed  six
    46  percent  in  any  year from the effective date of the order granting the
    47  increase over the rent set forth in the schedule of  gross  rents,  with
    48  collectability  of any dollar excess above said sum to be spread forward
    49  in similar increments and added to the stabilized rent as established or
    50  set in future years;
    51    § 12. Paragraph 6 of subdivision c of section 26-511 of  the  adminis-
    52  trative code of the city of New York, as amended by section 29 of part A
    53  of chapter 20 of the laws of 2015, is amended to read as follows:
    54    (6)  provides  criteria whereby the commissioner may act upon applica-
    55  tions by owners for increases in  excess  of  the  level  of  fair  rent
    56  increase  established under this law provided, however, that such crite-

        S. 6458                            37                            A. 8281

     1  ria shall provide (a) as to hardship applications, for  a  finding  that
     2  the level of fair rent increase is not sufficient to enable the owner to
     3  maintain  approximately  the same average annual net income (which shall
     4  be  computed  without regard to debt service, financing costs or manage-
     5  ment fees) for the three year period ending on or within six  months  of
     6  the  date  of  an application pursuant to such criteria as compared with
     7  annual net income, which prevailed on the average over the period  nine-
     8  teen  hundred  sixty-eight  through nineteen hundred seventy, or for the
     9  first three years of operation if the building was completed since nine-
    10  teen hundred sixty-eight or for the first three  fiscal  years  after  a
    11  transfer of title to a new owner provided the new owner can establish to
    12  the  satisfaction  of  the commissioner that he or she acquired title to
    13  the building as a result of a bona fide sale of the entire building  and
    14  that  the new owner is unable to obtain requisite records for the fiscal
    15  years nineteen hundred  sixty-eight  through  nineteen  hundred  seventy
    16  despite  diligent  efforts to obtain same from predecessors in title and
    17  further provided that the new owner can provide financial data  covering
    18  a  minimum  of  six  years under his or her continuous and uninterrupted
    19  operation of the building to meet the three year to three  year  compar-
    20  ative  test  periods  herein provided; and (b) as to completed building-
    21  wide major capital improvements, for a finding  that  such  improvements
    22  are deemed depreciable under the Internal Revenue Code and that the cost
    23  is  to  be amortized over an eight-year period for a building with thir-
    24  ty-five or fewer housing accommodations, or a  nine-year  period  for  a
    25  building  with  more  than  thirty-five  housing accommodations, for any
    26  determination issued by the division of housing  and  community  renewal
    27  after  the  effective  date  of  the  rent  act of 2015, based upon cash
    28  purchase price exclusive of interest  or  service  charges.    Where  an
    29  application  for a temporary major capital improvement increase has been
    30  filed, a tenant shall have sixty days from the  date  of  mailing  of  a
    31  notice  of  a proceeding in which to answer or reply. The state division
    32  of housing and community renewal shall  provide  any  responding  tenant
    33  with  the reasons for the division's approval or denial of such applica-
    34  tion. Notwithstanding anything to  the  contrary  contained  herein,  no
    35  hardship  increase  granted pursuant to this paragraph shall, when added
    36  to the annual gross rents, as determined by the commissioner, exceed the
    37  sum of, (i) the annual operating expenses, (ii) an allowance for manage-
    38  ment services as determined by the  commissioner,  (iii)  actual  annual
    39  mortgage debt service (interest and amortization) on its indebtedness to
    40  a  lending  institution,  an  insurance  company,  a  retirement fund or
    41  welfare fund which is operated under the supervision of the  banking  or
    42  insurance  laws  of the state of New York or the United States, and (iv)
    43  eight and one-half percent of that portion of the fair market  value  of
    44  the  property  which exceeds the unpaid principal amount of the mortgage
    45  indebtedness referred to in subparagraph (iii) of this  paragraph.  Fair
    46  market  value  for the purposes of this paragraph shall be six times the
    47  annual gross rent. The collection of any increase in the stabilized rent
    48  for any apartment pursuant  to  this  paragraph  shall  not  exceed  six
    49  percent  in  any  year from the effective date of the order granting the
    50  increase over the rent set forth in the schedule of  gross  rents,  with
    51  collectability  of any dollar excess above said sum to be spread forward
    52  in similar increments and added to the stabilized rent as established or
    53  set in future years;
    54    § 13. Subdivision d of section 6 of section 4 of chapter  576  of  the
    55  laws  of 1974, constituting the emergency tenant protection act of nine-

        S. 6458                            38                            A. 8281

     1  teen seventy-four, is amended by adding a new paragraph 3-a to  read  as
     2  follows:
     3    (3-a)  an  application  for  a  temporary  major  capital  improvement
     4  increase has been filed, a tenant shall have sixty days from the date of
     5  mailing of a notice of a proceeding in which to  answer  or  reply.  The
     6  state  division  of  housing  and  community  renewal  shall provide any
     7  responding tenant with the reasons for the division's approval or denial
     8  of such application; or
     9    § 14. Subparagraph 7 of the second undesignated paragraph of paragraph
    10  (a) of subdivision 4 of section 4 of chapter 274 of the  laws  of  1946,
    11  constituting  the  emergency  housing  rent  control  law, as amended by
    12  section 32 of part A of chapter 20 of the laws of 2015,  is  amended  to
    13  read as follows:
    14    (7)  there has been since March first, nineteen hundred fifty, a major
    15  capital improvement required for the operation, preservation or  mainte-
    16  nance  of  the structure; which for any order of the commissioner issued
    17  after the effective date of the rent  act  of  2015  the  cost  of  such
    18  improvement  shall  be amortized over an eight-year period for buildings
    19  with thirty-five or fewer units or a nine year period for buildings with
    20  more than thirty-five units, provided, however, where an application for
    21  a temporary major capital improvement increase has been filed, a  tenant
    22  shall have sixty days from the date of mailing of a notice of a proceed-
    23  ing  in  which  to  answer  or  reply. The state division of housing and
    24  community renewal shall provide any responding tenant with  the  reasons
    25  for the division's approval or denial of such application; or
    26    § 15.  Subdivision a of section 26-517.1 of the administrative code of
    27  the city of New York, as added by local law number 95 of the city of New
    28  York for the year 1985, is amended to read as follows:
    29    a. The [Department] department of [Finance] finance shall collect from
    30  the owner of each housing accommodation registered pursuant to [Section]
    31  section  26-517  of  this  [law]  chapter an annual fee in the amount of
    32  [ten] twenty dollars per year for each unit  subject  to  this  law,  in
    33  order  to defray costs incurred by the city pursuant to subdivision c of
    34  section eight of the emergency tenant protection act of nineteen hundred
    35  seventy-four.
    36    § 16. Subdivisions c and d of section 8 of section 4 of chapter 576 of
    37  the laws of 1974 constituting the emergency  tenant  protection  act  of
    38  nineteen  seventy-four,  subdivision c as amended by section 5 of part Z
    39  of chapter 56 of the laws of 2010 and subdivision d as amended by  chap-
    40  ter 116 of the laws of 1997, are amended to read as follows:
    41    c.  Whenever  a  city  having  a population of one million or more has
    42  determined the existence of an emergency pursuant to  section  three  of
    43  this act, the provisions of this act and the New York city rent stabili-
    44  zation  law  of nineteen hundred sixty-nine shall be administered by the
    45  state division of housing and community renewal as provided in  the  New
    46  York  city  rent  stabilization  law  of nineteen hundred sixty-nine, as
    47  amended, or as otherwise provided by law.  The  costs  incurred  by  the
    48  state  division  of  housing and community renewal in administering such
    49  regulation shall be paid by such city. All payments  for  such  adminis-
    50  tration shall be transmitted to the state division of housing and commu-
    51  nity renewal as follows: on or after April first of each year commencing
    52  with  April,  nineteen  hundred eighty-four, the commissioner of housing
    53  and community renewal shall determine an amount necessary to defray  the
    54  division's anticipated annual cost, and one-quarter of such amount shall
    55  be  paid  by such city on or before July first of such year, one-quarter
    56  of such amount on or before October first of such year,  one-quarter  of

        S. 6458                            39                            A. 8281

     1  such  amount  on  or before January first of the following year and one-
     2  quarter of such amount on or before March thirty-first of the  following
     3  year.  After the close of the fiscal year of the state, the commissioner
     4  shall  determine  the amount of all actual costs incurred in such fiscal
     5  year and shall certify such amount  to  such  city.  If  such  certified
     6  amount  shall  differ  from  the amount paid by the city for such fiscal
     7  year, appropriate adjustments  shall  be  made  in  the  next  quarterly
     8  payment to be made by such city. In the event that the amount thereof is
     9  not  paid  to  the  commissioner  as herein prescribed, the commissioner
    10  shall certify the unpaid amount to the comptroller, and the  comptroller
    11  shall,  to  the  extent  not  otherwise prohibited by law, withhold such
    12  amount from any state aid payable to such city. In no  event  shall  the
    13  amount  imposed  on  the owners exceed [ten] twenty dollars per unit per
    14  year.
    15    d. The failure to pay the prescribed assessment not  to  exceed  [ten]
    16  twenty  dollars  per  unit for any housing accommodation subject to this
    17  act or the New York city rent  stabilization  law  of  nineteen  hundred
    18  sixty-nine  shall  constitute  a charge due and owing such city, town or
    19  village which has imposed an annual charge for each such housing  accom-
    20  modation  pursuant to subdivision b of this section. Any such city, town
    21  or village shall be authorized to provide for  the  enforcement  of  the
    22  collection of such charges by commencing an action or proceeding for the
    23  recovery  of  such fees or by the filing of a lien upon the building and
    24  lot. Such methods for the enforcement of the collection of such  charges
    25  shall be the sole remedy for the enforcement of this section.
    26    §  17. Notwithstanding any other provision of law to the contrary, the
    27  increased revenues of ten dollars per unit per year to the  commissioner
    28  of  the state division of housing and community renewal pursuant to this
    29  act, for the purpose  of  enforcement  of  rent  regulations,  shall  be
    30  divided  equally by the commissioner between the office of rent adminis-
    31  tration and the office of the tenant protection unit within the division
    32  of housing and community renewal and shall be utilized  by  the  commis-
    33  sioner  in addition to and not in substitution for the levels of funding
    34  from all sources provided to the office of rent administration  and  the
    35  office of the tenant protection unit on the effective date of this act.
    36    § 18. This act shall take effect immediately; provided, however, that:
    37    (a) the amendments to chapter 4 of title 26 of the administrative code
    38  of  the  city of New York made by sections two, four, eleven, twelve and
    39  fifteen of this act shall expire  on  the  same  date  as  such  chapter
    40  expires  and shall not affect the expiration of such chapter as provided
    41  under section 26-520 of such law;
    42    (b) provided that the amendments to sections 26-405  and  26-405.1  of
    43  the  city  rent  and rehabilitation law made by sections three, five and
    44  ten of this act shall remain in full force and effect only  as  long  as
    45  the public emergency requiring the regulation and control of residential
    46  rents and evictions continues, as provided in subdivision 3 of section 1
    47  of the local emergency housing rent control act;
    48    (c)  effective  immediately,  the addition, amendment and/or repeal of
    49  any rule or regulation necessary for the implementation of this  act  on
    50  its  effective date are authorized and directed to be made and completed
    51  on or before such effective date.

    52                                   PART L

    53    Section 1. Short title. This act shall be known and may  be  cited  as
    54  the "rent regulation reporting act of 2019".

        S. 6458                            40                            A. 8281

     1    §  2. Section 20 of the public housing law, as added by chapter 576 of
     2  the laws of 1989, is amended to read as follows:
     3    §  20. Annual reports. 1. The commissioner shall, on or before October
     4  first in each year, beginning in nineteen hundred ninety, submit one  or
     5  more reports to the governor, the temporary president of the senate, the
     6  speaker  of the assembly, the minority leader of the senate and minority
     7  leader of the assembly on the activity and implementation of  the  state
     8  housing  assistance  programs for the previous fiscal year. In addition,
     9  the commissioner shall, on or before February first in each year, begin-
    10  ning in nineteen hundred ninety-one,  submit  an  interim  report  which
    11  contains,  in  tabular  format  only,  the  non-narrative  data compiled
    12  through November thirtieth of each year. The commissioner  shall  submit
    13  on  or  before  February first, nineteen hundred ninety a report for the
    14  fiscal year commencing April first, nineteen  hundred  eighty-eight  and
    15  the  most  up to date non-narrative data, in tabular format only, but in
    16  no event less than the data compiled through September thirtieth,  nine-
    17  teen  hundred  eighty-nine.  All  such reports shall include, but not be
    18  limited to the low income housing trust  fund  program,  the  affordable
    19  home  ownership  development program, the urban initiatives program, the
    20  rural area revitalization program, the rural rental assistance  program,
    21  the  homeless  housing and assistance program, the housing opportunities
    22  program for the elderly, the state of New York mortgage  agency  forward
    23  commitment  and  mortgage insurance programs, the housing finance agency
    24  secured loan rental program, the  turnkey/enhanced  housing  trust  fund
    25  program,  the  special  needs housing program, the permanent housing for
    26  the  homeless  program,  the  infrastructure  development  demonstration
    27  program  and  the mobile home cooperative fund program.  For the purpose
    28  of producing such report or reports, the commissioner shall  be  author-
    29  ized  to  rely  on  information provided by each administering agency or
    30  authority. Such report or reports shall, to the extent applicable  to  a
    31  specific  program,  include  but  not be limited to: (i) a narrative for
    32  each program reported describing the program  purpose,  eligible  appli-
    33  cants,  eligible  areas, income population to be served, and limitations
    34  on funding; (ii) for each eligible applicant receiving funding under the
    35  Housing Trust Fund or the Affordable Home Ownership Development programs
    36  during the year specified herein, such applicant's name and  address,  a
    37  description  of the applicant's contract amount, a narrative description
    38  of the specific activities performed by such applicant, and  the  income
    39  levels of the occupants to be served by the units all as proposed by the
    40  applicant  at  the  time the contract is awarded; (iii) a description of
    41  the distribution of funds for each category of project funded under each
    42  program; (iv) the number of units or beds under award,  under  contract,
    43  under  construction  and  completed  based on a change in project status
    44  during the year for each program;  (v)  the  number  of  units  or  beds
    45  assisted during the year under each program; (vi) the amount and type of
    46  assistance  provided for such units or beds placed under contract; (vii)
    47  based on total project costs, the number of units or beds under contract
    48  and  assisted  through  new  construction,  substantial  rehabilitation,
    49  moderate  rehabilitation,  improvements  to  existing units or beds, and
    50  through acquisition only for each program;  (viii)  for  the  number  of
    51  units or beds under contract assisted through new construction, substan-
    52  tial  rehabilitation,  moderate rehabilitation, improvements to existing
    53  units or beds, and through acquisition only, the level of state  assist-
    54  ance  expressed  as  a  percentage of total project cost; (ix) for those
    55  units and beds under contract a calculation of the amount  of  non-state
    56  funds  provided expressed as a percentage of total project cost; (x) the

        S. 6458                            41                            A. 8281

     1  number of units or beds completed and under award,  under  contract  and
     2  under  construction  for each program based on the current program pipe-
     3  line; (xi) for units or beds for which mortgage assistance was  provided
     4  by  the  state  of  New York mortgage agency, the number of existing and
     5  newly constructed units; and (xii) a list, by program, of units or  beds
     6  assisted  within each county. To the extent that any law establishing or
     7  appropriating funds for any of the aforementioned programs requires  the
     8  commissioner  to  produce a report containing data substantially similar
     9  to that required herein, this report shall be  deemed  to  satisfy  such
    10  other requirements.
    11    2.  The  commissioner  shall,  on or before December thirty-first, two
    12  thousand nineteen, and on or before December thirty-first in each subse-
    13  quent year, submit and make publicly available a report to the governor,
    14  the temporary president of the senate, the speaker of the assembly,  and
    15  on  its  website, on the implementation of the system of rent regulation
    16  pursuant to chapter five hundred seventy-six of  the  laws  of  nineteen
    17  hundred  seventy-four,  chapter  two hundred seventy four of the laws of
    18  nineteen hundred forty-six, chapter three  hundred  twenty-nine  of  the
    19  laws of nineteen hundred sixty-three, chapter five hundred fifty-five of
    20  the laws of nineteen hundred eighty-two, chapter four hundred two of the
    21  laws  of  nineteen  hundred eighty-three, chapter one hundred sixteen of
    22  the laws of nineteen hundred ninety-seven, sections 26-501, 26-502,  and
    23  26-520  of the administrative code of the city of New York and the hous-
    24  ing stability and tenant protection act of  2019.    Such  report  shall
    25  include  but  not be limited to: a narrative describing the programs and
    26  activities undertaken by the  office  of  rent  administration  and  the
    27  tenant  protection unit, and any other programs or activities undertaken
    28  by the division to implement, administer, and enforce the system of rent
    29  regulation; and in tabular format, for each of the  three  fiscal  years
    30  immediately preceding the date the report is due: (i) the number of rent
    31  stabilized housing accommodations within each county; (ii) the number of
    32  rent  controlled  housing  accommodations  within each county; (iii) the
    33  number of applications for major capital  improvements  filed  with  the
    34  division,  the  number  of  such applications approved as submitted, the
    35  number of such applications approved with modifications, and the  number
    36  of  such applications rejected; (iv) the median and mean value of appli-
    37  cations for major capital improvements approved; (v) the number of units
    38  which were registered with the division where the amount charged to  and
    39  paid  by  the  tenant  was less than the registered rent for the housing
    40  accommodation; (vi) for housing accommodations that were registered with
    41  the division where the amount charged to and paid by the tenant was less
    42  than the registered rent for the housing accommodation, the  median  and
    43  mean  difference between the registered rent for a housing accommodation
    44  and the amount charged to and paid by the tenant; (vii) the  median  and
    45  mean  registered rent for housing accommodations for which the lease was
    46  renewed by an existing tenant; (viii) the  median  and  mean  registered
    47  rent  for  housing  accommodations for which a lease was signed by a new
    48  tenant after a vacancy; (ix) the median and mean  increase,  in  dollars
    49  and  as  a percentage, in the registered rent for housing accommodations
    50  where the lease was signed by a new tenant  after  a  vacancy;  (x)  the
    51  median  and mean increase, in dollars and as a percentage, in the regis-
    52  tered rent for housing accommodations where the lease was  signed  by  a
    53  new  tenant after a vacancy, where the amount changed to and paid by the
    54  prior tenant was the full registered rent;  (xi)  the  median  and  mean
    55  increase,  in  dollars  and  as a percentage, in the registered rent for
    56  housing accommodations where the lease was signed by a new tenant  after

        S. 6458                            42                            A. 8281

     1  a  vacancy, where the amount changed to and paid by the prior tenant was
     2  less than the registered rent;  (xii)  the  number  of  rent  overcharge
     3  complaints  processed  by the division; (xiii) the number of final over-
     4  charge orders granting an overcharge; (xiv) the number of investigations
     5  commenced  by  the  tenant protection unit, the aggregate number of rent
     6  stabilized or rent controlled housing accommodations in each county that
     7  were the subject of such investigations, and the  dispositions  of  such
     8  investigations.  At  the  time the report is due, the commissioner shall
     9  make available to the governor, the temporary president of  the  senate,
    10  the  speaker  of the assembly, and shall make publicly available, and on
    11  its website in machine readable format, the data used  to  tabulate  the
    12  figures  required  to be included in the report, taking any steps neces-
    13  sary to protect confidential information regarding individual buildings,
    14  housing accommodations, property owners, and tenants.
    15    § 3. This act shall take effect immediately.

    16                                   PART M

    17    Section 1. Short title. This act shall be known and may  be  cited  as
    18  the "statewide housing security and tenant protection act of 2019".
    19    § 2. Section 223-b of the real property law, as amended by chapter 584
    20  of the laws of 1991, subdivision 5-a as added by chapter 466 of the laws
    21  of 2005, is amended to read as follows:
    22    §  223-b.  Retaliation  by  landlord against tenant. 1. No landlord of
    23  premises or units to which this section  is  applicable  shall  serve  a
    24  notice  to  quit  upon any tenant or commence any action to recover real
    25  property or summary proceeding to recover possession of real property in
    26  retaliation for:
    27    a. A good faith complaint, by or in behalf of the tenant, to the land-
    28  lord, the landlord's agent or a governmental authority of the landlord's
    29  alleged violation of any health or  safety  law,  regulation,  code,  or
    30  ordinance,  the warranty of habitability under section two hundred thir-
    31  ty-five-b of this article, the duty to repair  under  sections  seventy-
    32  eight,  seventy-nine, and eighty of the multiple dwelling law or section
    33  one hundred seventy-four of the multiple residence law, or  any  law  or
    34  regulation  which  has  as its objective the regulation of premises used
    35  for dwelling purposes or which pertains to the offense of  rent  gouging
    36  in the third, second or first degree; or
    37    b.  Actions  taken  in  good  faith, by or in behalf of the tenant, to
    38  secure or enforce any rights under the lease or  rental  agreement,  the
    39  warranty of habitability under section two hundred thirty-five-b of this
    40  [chapter]  article,  the  duty  to  repair under sections seventy-eight,
    41  seventy-nine, and eighty of the multiple dwelling  law  or  section  one
    42  hundred  seventy-four  of the multiple residence law, or under any other
    43  law of the state of New York, or of its governmental subdivisions, or of
    44  the United States which has as its objective the regulation of  premises
    45  used  for  dwelling  purposes  or  which pertains to the offense of rent
    46  gouging in the third, second or first degree; or
    47    c. The tenant's participation in the activities of a  tenant's  organ-
    48  ization.
    49    2.  No  landlord  [or]  of  premises or units to which this section is
    50  applicable or such landlord's agent shall substantially alter the  terms
    51  of the tenancy in retaliation for any actions set forth in paragraphs a,
    52  b,  and  c  of  subdivision  one of this section. Substantial alteration
    53  shall include, but is not limited to, the refusal to continue a  tenancy
    54  of  the tenant [or], upon expiration of the tenant's lease, to renew the

        S. 6458                            43                            A. 8281

     1  lease or offer a new lease, or offering a new lease with an unreasonable
     2  rent increase; provided, however, that a landlord shall not be  required
     3  under  this  section  to offer a new lease or a lease renewal for a term
     4  greater  than  one  year  [and after such extension of a tenancy for one
     5  year shall not be required to further extend or continue such tenancy].
     6    3. A landlord shall be subject to a civil action for  damages,  attor-
     7  ney's  fees and costs and other appropriate relief, including injunctive
     8  and other equitable remedies, as may be determined by a court of  compe-
     9  tent  jurisdiction  in  any  case in which the landlord has violated the
    10  provisions of this section.
    11    4. In any action to recover real property  or  summary  proceeding  to
    12  recover  possession  of real property, judgment shall be entered for the
    13  tenant if the court finds that the landlord is acting in retaliation for
    14  any action set forth in paragraphs a, b, and c  of  subdivision  one  of
    15  this  section  [and  further finds that the landlord would not otherwise
    16  have commenced such action or proceeding]. Retaliation shall be asserted
    17  as an affirmative defense in such action or proceeding. The tenant shall
    18  not be relieved of the obligation to pay any rent for which he is other-
    19  wise liable.
    20    5. In an action or proceeding instituted against a tenant of  premises
    21  or  a unit to which this section is applicable, a rebuttable presumption
    22  that the landlord is acting in  retaliation  shall  be  created  if  the
    23  tenant  establishes that the landlord served a notice to quit, or insti-
    24  tuted an action or proceeding to recover  possession,  or  attempted  to
    25  substantially  alter  the  terms of the tenancy, within [six months] one
    26  year after:
    27    a. A good faith complaint was made, by or in behalf of the tenant,  to
    28  the  landlord,  the  landlord's agent or a governmental authority of the
    29  landlord's violation of any health or safety law, regulation,  code,  or
    30  ordinance,  the warranty of habitability under section two hundred thir-
    31  ty-five-b of this article, the duty to repair  under  sections  seventy-
    32  eight,  seventy-nine, and eighty of the multiple dwelling law or section
    33  one hundred seventy-four of the multiple residence law, or  any  law  or
    34  regulation  which  has  as its objective the regulation of premises used
    35  for dwelling purposes or which pertains to the offense of  rent  gouging
    36  in the third, second or first degree; or
    37    b.  The  tenant  in good faith [commenced an action or proceeding in a
    38  court or administrative body of competent jurisdiction] took  action  to
    39  secure  or  enforce  against the landlord or his agents any rights under
    40  the lease or  rental  agreement,  the  warranty  of  habitability  under
    41  section two hundred thirty-five-b of this [chapter] article, the duty to
    42  repair  under  sections  seventy-eight,  seventy-nine, and eighty of the
    43  multiple dwelling law or section one hundred seventy-four of the  multi-
    44  ple  residence  law, or under any other law of the state of New York, or
    45  of its governmental subdivisions, or of the United States which  has  as
    46  its  objective  the regulation of premises used for dwelling purposes or
    47  which pertains to the offense of rent gouging in the  third,  second  or
    48  first degree.
    49    c.  Judgment  under  subdivision  three  or  four  of this section was
    50  entered for the tenant in a previous action between the parties;  or  an
    51  inspection  was made, an order was entered, or other action was taken as
    52  a result of a complaint or act described in paragraph a  or  b  of  this
    53  subdivision.
    54    [But  the presumption shall not apply in an action or proceeding based
    55  on the violation by the tenant of the terms and conditions of the  lease
    56  or rental agreement, including nonpayment of the agreed-upon rent.]

        S. 6458                            44                            A. 8281

     1    The  effect  of  the  presumption  shall be to require the landlord to
     2  [provide a credible explanation of] establish a  non-retaliatory  motive
     3  for  his  acts[.    Such  an  explanation  shall overcome and remove the
     4  presumption unless the tenant disproves it] by a  preponderance  of  the
     5  evidence.
     6    5-a.  Any  lease  provision  which  seeks  to assess a fee, penalty or
     7  dollar charge, in addition to the stated rent, against a tenant  because
     8  such  tenant  files  a  bona fide complaint with the landlord, the land-
     9  lord's agent or a building code officer regarding the condition of  such
    10  tenant's  leased premises shall be null and void as being against public
    11  policy. A landlord  or agent of the landlord who seeks to enforce such a
    12  fee, penalty or charge shall be liable to  the  tenant  for  triple  the
    13  amount of such fee, penalty or charge.
    14    6.  This section shall apply to all rental residential premises except
    15  owner-occupied  dwellings  with  less  than  four  units.  However,  its
    16  provisions  shall  not be given effect in any case in which it is estab-
    17  lished that the condition from which the complaint or action  arose  was
    18  caused  by the tenant, a member of the tenant's household, or a guest of
    19  the tenant. Nor shall it apply in a case where a tenancy was  terminated
    20  pursuant  to the terms of a lease as a result of a bona fide transfer of
    21  ownership.
    22    § 3. The real property law is amended by adding a new section 226-c to
    23  read as follows:
    24    § 226-c. Notice of rent increase or non-renewal of residential  tenan-
    25  cy.  1.  Whenever a landlord intends to offer to renew the tenancy of an
    26  occupant in a residential dwelling unit with a rent increase equal to or
    27  greater than five percent above the current rent, or the  landlord  does
    28  not  intend  to  renew  the  tenancy, the landlord shall provide written
    29  notice as required in subdivision two of this section. If  the  landlord
    30  fails  to  provide  timely  notice,  the occupant's lawful tenancy shall
    31  continue under the existing terms of the tenancy from the date on  which
    32  the  landlord  gave  actual  written  notice until the notice period has
    33  expired, notwithstanding any provision  of  a  lease  or  other  tenancy
    34  agreement to the contrary.
    35    2.  (a) If the tenant has occupied the unit for less than one year and
    36  does not have a lease term of at least  one  year,  the  landlord  shall
    37  provide at least thirty days' notice.
    38    (b)  If  the  tenant  has occupied the unit for more than one year but
    39  less than two years, or has a lease term of at least one year  but  less
    40  than two years, the landlord shall provide at least sixty days' notice.
    41    (c) If the tenant has occupied the unit for more than two years or has
    42  a  lease term of at least two years, the landlord shall provide at least
    43  ninety days' notice.
    44    § 4. The real property law is amended by adding a new section 227-e to
    45  read as follows:
    46    § 227-e. Landlord duty to mitigate damages. In  any  lease  or  rental
    47  agreement,  excluding any real estate purchase contract defined in para-
    48  graphs (a), (c) and (d) of subdivision  four  of  section  four  hundred
    49  sixty-one  of  this  chapter,  covering  premises  occupied for dwelling
    50  purposes, if a tenant vacates a premises in violation of  the  terms  of
    51  the  lease, the landlord shall, in good faith and according to the land-
    52  lord's resources and abilities, take reasonable and customary actions to
    53  rent the premises at fair market value or at the rate agreed  to  during
    54  the  term of the tenancy, whichever is lower.  If the landlord rents the
    55  premises at fair market value or at the rate agreed to during  the  term
    56  of  the tenancy, the new tenant's lease shall, once in effect, terminate

        S. 6458                            45                            A. 8281

     1  the previous tenant's lease and mitigate damages  otherwise  recoverable
     2  against  the previous tenant because of such tenant's vacating the prem-
     3  ises. The burden of proof shall be  on  the  party  seeking  to  recover
     4  damages.  Any  provision  in  a  lease that exempts a landlord's duty to
     5  mitigate damages under this section shall be void as contrary to  public
     6  policy.
     7    § 5. The real property law is amended by adding a new section 227-f to
     8  read as follows:
     9    §  227-f. Denial on the basis of involvement in prior disputes prohib-
    10  ited. 1. No landlord of a residential premises shall refuse to  rent  or
    11  offer  a  lease  to  a  potential tenant on the basis that the potential
    12  tenant was involved in a  past  or  pending  landlord-tenant  action  or
    13  summary  proceeding under article seven of the real property actions and
    14  proceedings law.  There shall be a rebuttable presumption that a  person
    15  is  in  violation  of  this section if it is established that the person
    16  requested information from a  tenant  screening  bureau  relating  to  a
    17  potential  tenant  or  otherwise  inspected  court records relating to a
    18  potential tenant and the person subsequently refuses to rent or offer  a
    19  lease to the potential tenant.
    20    2. Whenever the attorney general shall believe from evidence satisfac-
    21  tory  to him or her that any person, firm, corporation or association or
    22  agent or employee thereof has violated subdivision one of this  section,
    23  he or she may bring an action or special proceeding in the supreme court
    24  for  a  judgment  enjoining  the continuance of such violation and for a
    25  civil penalty of not less than five hundred dollars, but not  more  than
    26  one thousand dollars for each violation.
    27    § 6. Section 232-a of the real property law, as amended by chapter 312
    28  of the laws of 1962, is amended to read as follows:
    29    §  232-a. Notice to terminate monthly tenancy or tenancy from month to
    30  month in the city of New York. No monthly tenant, or tenant  from  month
    31  to  month, shall hereafter be removed from any lands or buildings in the
    32  city of New York on the grounds of holding over [his] the tenant's  term
    33  unless [at least thirty days before the expiration of the term] pursuant
    34  to  the notice period required by subdivision two of section two hundred
    35  twenty-six-c of this article, the landlord or [his] the landlord's agent
    36  serve upon the tenant, in the same manner in which a notice of  petition
    37  in  summary  proceedings is now allowed to be served by law, a notice in
    38  writing to the effect that the landlord elects to terminate the  tenancy
    39  and  that  unless  the  tenant removes from such premises on the day [on
    40  which his term expires] designated in  the  notice,  the  landlord  will
    41  commence  summary  proceedings  under  the statute to remove such tenant
    42  therefrom.
    43    § 7. Section 232-b of the real property law, as added by  chapter  813
    44  of the laws of 1942, is amended to read as follows:
    45    §  232-b.  Notification  to  terminate monthly tenancy or tenancy from
    46  month to month outside the city of New York. A monthly tenancy or tenan-
    47  cy from month to month of any lands or buildings located outside of  the
    48  city  of New York may be terminated by the [landlord or the] tenant upon
    49  [his] the tenant's notifying the [other] landlord  at  least  one  month
    50  before  the  expiration  of  the  term of [his] the tenant's election to
    51  terminate; provided, however, that no notification shall be necessary to
    52  terminate a tenancy for a definite term.
    53    § 8. Section 234 of the real property law, as amended by  chapter  297
    54  of the laws of 1969, is amended to read as follows:
    55    § 234. [Tenants' right] Right to recover attorneys' fees in actions or
    56  summary  proceedings  arising  out  of  leases  of residential property.

        S. 6458                            46                            A. 8281

     1  Whenever a lease of residential  property  shall  provide  that  in  any
     2  action  or  summary  proceeding the landlord may recover attorneys' fees
     3  and/or expenses incurred as the result of the failure of the  tenant  to
     4  perform  any  covenant  or  agreement  contained  in such lease, or that
     5  amounts paid by the landlord therefor shall be paid  by  the  tenant  as
     6  additional  rent, there shall be implied in such lease a covenant by the
     7  landlord to pay to the tenant  the  reasonable  attorneys'  fees  and/or
     8  expenses  incurred  by  the  tenant  as the result of the failure of the
     9  landlord to perform  any  covenant  or  agreement  on  its  part  to  be
    10  performed  under the lease or in the successful defense of any action or
    11  summary proceeding commenced by the landlord against the tenant  arising
    12  out  of  the  lease, and an agreement that such fees and expenses may be
    13  recovered as provided by law in an action commenced against the landlord
    14  or by way of counterclaim in any action or summary proceeding  commenced
    15  by  the  landlord  against the tenant. A landlord may not recover attor-
    16  neys' fees upon a default judgment. Any waiver of this section shall  be
    17  void as against public policy.
    18    §  9.    Section 235-e of the real property law, as amended by chapter
    19  848 of the laws of 1986, is amended to read as follows:
    20    § 235-e. Duty [of landlord] to provide a written receipt. (a) Upon the
    21  receipt of the payment of rent for residential premises in the  form  of
    22  cash,  or  any  instrument other than the personal check of the [tenant]
    23  lessee, it shall be the duty of the [landlord] lessor, or any  agent  of
    24  the  lessor  authorized  to  receive rent, to provide the [payor] lessee
    25  with a written receipt containing the following:
    26    1. The date;
    27    2. The amount;
    28    3. The identity of the premises and period for which paid; and
    29    4. The signature and title of the person receiving the rent.
    30    (b) [Where a tenant] A lessee may request, in writing, [requests] that
    31  a [landlord] lessor provide a receipt for rent paid by personal  check[,
    32  it  shall  be  the  duty of]. If such request is made, the [landlord to]
    33  lessor, or any agent of the lessor authorized  to  receive  rent,  shall
    34  provide the [payor] lessee with the receipt described in subdivision (a)
    35  of  this  section  [for each such request made in writing]. Such request
    36  shall, unless otherwise specified by the lessee, remain  in  effect  for
    37  the  duration  of  such  lessee's tenancy.   The lessor shall maintain a
    38  record of all cash receipts for rent for at least three years.
    39    (c) If a payment of rent is personally transmitted to a lessor, or  an
    40  agent  of  a  lessor  authorized  to  receive rent, the receipt for such
    41  payment shall be issued immediately to a lessee. If a payment of rent is
    42  transmitted indirectly to a lessor, or an agent of a  lessor  authorized
    43  to  receive  rent,  a  lessee  shall  be  provided with a receipt within
    44  fifteen days of such lessor or agent's receipt of a rent payment.
    45    (d) If a lessor, or an agent of a lessor authorized to  receive  rent,
    46  fails to receive payment for rent within five days of the date specified
    47  in  a  lease  agreement,  such lessor or agent shall send the lessee, by
    48  certified mail, a written notice stating the  failure  to  receive  such
    49  rent  payment.  The  failure  of  a  lessor,  or any agent of the lessor
    50  authorized to receive rent, to provide a lessee with a written notice of
    51  the non-payment of rent may be used as an affirmative  defense  by  such
    52  lessee in an eviction proceeding based on the non-payment of rent.
    53    §  10.  The real property law is amended by adding a new section 238-a
    54  to read as follows:
    55    § 238-a. Limitation on fees. In relation  to  a  residential  dwelling
    56  unit:

        S. 6458                            47                            A. 8281

     1    1. (a) Except in instances where statutes or regulations provide for a
     2  payment,  fee  or charge, no landlord, lessor, sub-lessor or grantor may
     3  demand any payment, fee, or charge for the processing, review or accept-
     4  ance of an application, or demand  any  other  payment,  fee  or  charge
     5  before  or at the beginning of the tenancy, except background checks and
     6  credit checks as provided by paragraph (b) of this subdivision, provided
     7  that this subdivision shall  not  apply  to  entrance  fees  charged  by
     8  continuing  care  retirement  communities  licensed  pursuant to article
     9  forty-six or forty-six-A of  the  public  health  law,  assisted  living
    10  providers  licensed pursuant to article forty-six-B of the public health
    11  law, adult care facilities licensed pursuant to  article  seven  of  the
    12  social  services law, senior residential communities that have submitted
    13  an offering plan to the attorney general, or not-for-profit  independent
    14  retirement  communities  that  offer personal emergency response, house-
    15  keeping, transportation and meals to their residents.
    16    (b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees
    17  to reimburse costs associated with conducting  a  background  check  and
    18  credit  check, provided the cumulative fee or fees for such checks is no
    19  more than the actual cost of the background check and   credit check  or
    20  twenty  dollars, whichever is less, and the landlord, lessor, sub-lessor
    21  or grantor shall waive the fee or fees if the potential tenant  provides
    22  a  copy  of a background check or credit check conducted within the past
    23  thirty days. The landlord, lessor, sub-lessor or grantor may not collect
    24  the fee or fees unless  the  landlord,  lessor,  sub-lessor  or  grantor
    25  provides  the  potential  tenant  with a copy of the background check or
    26  credit check and the receipt or invoice from the entity  conducting  the
    27  background check or credit check.
    28    2.  No landlord, lessor, sub-lessor or grantor may demand any payment,
    29  fee, or charge for the late payment of rent unless the payment  of  rent
    30  has  not  been  made  within  five days of the date it was due, and such
    31  payment, fee, or charge shall not exceed fifty dollars or  five  percent
    32  of the monthly rent, whichever is less.
    33    3.  Any  provision  of  a  lease  or  contract waiving or limiting the
    34  provisions of this section shall be void as against public policy.
    35    § 11. The real property actions and  proceedings  law  is  amended  by
    36  adding a new section 702 to read as follows:
    37    §  702.  Rent in a residential dwelling. In a proceeding relating to a
    38  residential dwelling or housing accommodation,  the  term  "rent"  shall
    39  mean  the  monthly or weekly amount charged in consideration for the use
    40  and occupation of a dwelling pursuant to a written or oral rental agree-
    41  ment.  No fees, charges or penalties other than rent may be sought in  a
    42  summary   proceeding  pursuant  to  this  article,  notwithstanding  any
    43  language to the contrary in any lease or rental agreement.
    44    § 12. The opening paragraph and subdivision 2 of section  711  of  the
    45  real  property  actions  and  proceedings  law, the opening paragraph as
    46  amended by chapter 739 of the laws of 1982 and subdivision 2 as added by
    47  chapter 312 of the laws of 1962, are amended to read as follows:
    48    A tenant shall include an occupant of one or more rooms in  a  rooming
    49  house  or a resident, not including a transient occupant, of one or more
    50  rooms in a hotel who has been in possession for thirty consecutive  days
    51  or  longer[;  he]. No tenant or lawful occupant of a dwelling or housing
    52  accommodation shall [not] be removed from possession except in a special
    53  proceeding.  A special proceeding may be maintained under  this  article
    54  upon the following grounds:
    55    2.  The  tenant  has defaulted in the payment of rent, pursuant to the
    56  agreement under which the premises are held, and a written demand of the

        S. 6458                            48                            A. 8281

     1  rent has been made[, or] with at least [three] fourteen days' notice [in
     2  writing] requiring, in the alternative, the payment of the rent, or  the
     3  possession  of  the  premises, has been served upon him as prescribed in
     4  section  [735.  The  landlord  may  waive his right to proceed upon this
     5  ground only by an express consent in writing to  permit  the  tenant  to
     6  continue  in  possession,  which  consent shall be revocable at will, in
     7  which event the landlord shall be deemed to have  waived  his  right  to
     8  summary  dispossess for nonpayment of rent accruing during the time said
     9  consent remains unrevoked] seven hundred thirty-five  of  this  article.
    10  Any  person  succeeding  to  the landlord's interest in the premises may
    11  proceed under this subdivision for rent due his predecessor in  interest
    12  if  he  has  a right thereto. Where a tenant dies during the term of the
    13  lease and rent due has not been paid and [no  representative  or  person
    14  has  taken  possession  of the premises and no administrator or executor
    15  has been appointed, the proceeding may be commenced after  three  months
    16  from  the date of death of the tenant by joining the surviving spouse or
    17  if there is none, then one of the surviving issue or if there  is  none,
    18  then  any one of the distributees] the apartment is occupied by a person
    19  with a claim to possession, a proceeding may  be  commenced  naming  the
    20  occupants of the apartment seeking a possessory judgment only as against
    21  the  estate.  Entry of such a judgment shall be without prejudice to the
    22  possessory claims of the occupants, and any warrant issued shall not  be
    23  effective as against the occupants.
    24    §  13. Section 731 of the real property actions and proceedings law is
    25  amended by adding a new subdivision 4 to read as follows:
    26    4. In an action premised on a tenant  defaulting  in  the  payment  of
    27  rent,  payment to the landlord of the full amount of rent due, when such
    28  payment is made at any time prior to the hearing on the petition,  shall
    29  be  accepted  by  the landlord and renders moot the grounds on which the
    30  special proceeding was commenced.
    31    § 14. Subdivisions 1, 2, and 3 of section 732  of  the  real  property
    32  actions  and  proceedings  law,  as  added by chapter 910 of the laws of
    33  1965, are amended to read as follows:
    34    1. The notice of petition shall be returnable before  the  clerk,  and
    35  shall be made returnable within [five] ten days after its service.
    36    2.  If the respondent answers, the clerk shall fix a date for trial or
    37  hearing not less than three nor more than eight days  after  joinder  of
    38  issue,  and shall immediately notify by mail the parties or their attor-
    39  neys of such date. If the determination be for the petitioner, the issu-
    40  ance of a warrant shall not be stayed for more than five days from  such
    41  determination,  except  as provided in section seven hundred fifty-three
    42  of this article.
    43    3. If the respondent fails to answer within [five] ten days  from  the
    44  date  of service, as shown by the affidavit or certificate of service of
    45  the notice of petition and petition, the judge shall render judgment  in
    46  favor  of  the petitioner and may stay the issuance of the warrant for a
    47  period of not to exceed ten days from the date  of  service,  except  as
    48  provided in section seven hundred fifty-three of this article.
    49    §  15.  Subdivision  1 of section 733 of the real property actions and
    50  proceedings law, as amended by chapter 910  of  the  laws  of  1965,  is
    51  amended to read as follows:
    52    1.  Except  as  provided  in section [732] seven hundred thirty-two of
    53  this article, relating to a proceeding  for  non-payment  of  rent,  the
    54  notice  of petition and petition shall be served at least [five] ten and
    55  not more than [twelve] seventeen days before the time at which the peti-
    56  tion is noticed to be heard.

        S. 6458                            49                            A. 8281

     1    § 16. Section 743 of the real property actions and proceedings law, as
     2  amended by chapter 644 of the laws  of  2003,  is  amended  to  read  as
     3  follows:
     4    § 743. Answer. Except as provided in section [732] seven hundred thir-
     5  ty-two  of  this  article,  relating  to a proceeding for non-payment of
     6  rent, at the time when the petition is to be heard  the  respondent,  or
     7  any  person  in  possession  or claiming possession of the premises, may
     8  answer, orally or in writing. If the answer is oral the substance there-
     9  of shall be recorded by the clerk or,  if  a  particular  court  has  no
    10  clerk,  by  the presiding judge or justice of such court, and maintained
    11  in the case record. [If the notice of petition was served at least eight
    12  days before the time at which it was noticed  to  be  heard  and  it  so
    13  demands,  the  answer  shall be made at least three days before the time
    14  the petition is noticed to be heard and, if  in  writing,  it  shall  be
    15  served  within  such  time; whereupon any reply shall be served at least
    16  one day before such time.] The answer may contain any legal or equitable
    17  defense, or counterclaim. The court may render affirmative judgment  for
    18  the amount found due on the counterclaim.
    19    § 17. Subdivisions 1 and 2 of section 745 of the real property actions
    20  and  proceedings  law,  as  amended  by chapter 403 of the laws of 1983,
    21  subdivision 2 as amended by chapter 116 of the laws  of  1997,  subpara-
    22  graph  (i)  of  paragraph  (b)  as amended by chapter 601 of the laws of
    23  2007, are amended to read as follows:
    24    1. Where triable issues of fact are raised, they shall be tried by the
    25  court unless, at the time the petition is noticed to be heard,  a  party
    26  demands  a  trial  by jury, in which case trial shall be by jury. At the
    27  time when issue is joined the court, [in its discretion] at the  request
    28  of  either  party  [and  upon  proof to its satisfaction by affidavit or
    29  orally that an adjournment is  necessary  to  enable  the  applicant  to
    30  procure  his  necessary  witnesses, or by consent of all the parties who
    31  appear, may] shall adjourn the trial of the issue, [but] not [more] less
    32  than [ten] fourteen days, except by consent of all  parties.  A  party's
    33  second  or  subsequent  request  for adjournment shall be granted in the
    34  court's sole discretion.
    35    2. In the city of New York:
    36    (a) In a summary proceeding upon the second of two adjournments grant-
    37  ed solely at the request of the respondent,  or,  upon  the  [thirtieth]
    38  sixtieth day after the first appearance of the parties in court less any
    39  days  that  the  proceeding  has  been adjourned upon the request of the
    40  petitioner, counting only days attributable to adjournment requests made
    41  solely at the request of the respondent  and  not  counting  an  initial
    42  adjournment  requested  by a respondent unrepresented by counsel for the
    43  purpose of securing counsel, whichever occurs sooner, the court  [shall]
    44  may,  upon  consideration  of  the equities, direct that the respondent,
    45  upon [an application] a motion on notice made by the petitioner, deposit
    46  with the court [within five days] sums of  rent  or  use  and  occupancy
    47  [accrued  from  the  date the petition and notice of petition are served
    48  upon the respondent, and all sums as they become due for  rent  and  use
    49  and  occupancy]  that shall accrue subsequent to the date of the court's
    50  order, which may be established without the use  of  expert  testimony[,
    51  unless].  The  court shall not order deposit or payment of use and occu-
    52  pancy where the respondent can establish[, at an immediate hearing],  to
    53  the  satisfaction  of  the court that respondent has properly interposed
    54  one of the following defenses or established the following grounds:
    55    (i) the petitioner is not a proper party to the proceeding pursuant to
    56  section seven hundred twenty-one of this article; or

        S. 6458                            50                            A. 8281

     1    (ii) (A) actual eviction, or  (B)  actual  partial  eviction,  or  (C)
     2  constructive eviction; and respondent has quit the premises; or
     3    (iii)  a  defense pursuant to section one hundred forty-three-b of the
     4  social services law; or
     5    (iv)  a defense based upon the existence of hazardous  or  immediately
     6  hazardous  violations  of  the  housing  maintenance code in the subject
     7  apartment or common areas; or
     8    (v) a colorable defense of rent overcharge; or
     9    (vi) a defense that the unit is in violation of the building's certif-
    10  icate of occupancy or is otherwise illegal under the  multiple  dwelling
    11  law or the New York city housing maintenance code; or
    12    (vii) the court lacks personal jurisdiction over the respondent.
    13    [When  the  rental unit that is the subject of the petition is located
    14  in a building containing twelve or fewer units, the court shall  inquire
    15  of  the  respondent  as to whether there is any undisputed amount of the
    16  rent or use and occupancy due to the  petitioner.  Any  such  undisputed
    17  amount shall be paid directly to the petitioner, and any disputed amount
    18  shall  be  deposited  to the court by the respondent as provided in this
    19  subdivision.]
    20    Two adjournments shall not  include  an  adjournment  requested  by  a
    21  respondent  unrepresented by counsel for the purpose of securing counsel
    22  made on a return date of the proceeding. Such rent or use and  occupancy
    23  sums  shall  be  deposited  with  the clerk of the court or paid to such
    24  other person or entity, including the petitioner or an agent  designated
    25  by  the  division  of  housing and community renewal, as the court shall
    26  direct or shall be expended for such  emergency  repairs  as  the  court
    27  shall approve.
    28    (b)  In  establishing  the  monthly  amount to be deposited, the court
    29  shall not exceed the amount of the regulated rent for the unit under any
    30  state, local or federal regulatory scheme, or the amount of the tenant's
    31  rent share under a state, local  or  federal  subsidy  program,  or  the
    32  amount of the tenant's share under an expired subsidy, unless the tenant
    33  has  entered  into  an  enforceable  new agreement to pay the full lease
    34  rent.
    35    (c) (i) The court shall not require  the  respondent  to  deposit  the
    36  portion of rent or use and occupancy, if any, which is payable by direct
    37  government  housing  subsidy,  any  currently  effective  senior citizen
    38  increase exemption authorized pursuant to sections four  hundred  sixty-
    39  seven-b  and  four  hundred  sixty-seven-c of the real property tax law,
    40  direct payment of rent or a two-party check issued by a social  services
    41  district or the office of temporary and disability assistance, or rental
    42  assistance that is payable pursuant to court orders issued in litigation
    43  commenced  in nineteen hundred eighty-seven in a proceeding in which the
    44  amount of shelter allowance is at issue on behalf of recipients of fami-
    45  ly assistance. In the event the respondent or other adult member of  the
    46  respondent's  household  receives  public  assistance  pursuant to title
    47  three or title ten of article five  of  the  social  services  law,  the
    48  respondent  shall, when directed by the court to deposit rent and use or
    49  occupancy, only be required to deposit with the court the amount of  the
    50  shelter  allowance  portion of the public assistance grant issued by the
    51  office of temporary and  disability  assistance  or  a  social  services
    52  district. In the event the respondent receives a fixed income, including
    53  but not limited to, social security income, supplemental security income
    54  pursuant  to  title sixteen of the federal social security act and title
    55  six of article five of the social services law, or pension  income,  the
    56  respondent shall [only] not be required to deposit [one-third] more than

        S. 6458                            51                            A. 8281

     1  thirty  percent  of  the  monthly [supplemental security income payment]
     2  payments.
     3    (ii)  Any sum required to be deposited with the court pursuant to this
     4  subdivision shall be offset by payment, if any, made by  the  respondent
     5  pursuant  to  section two hundred thirty-five-a of the real property law
     6  or section three hundred two-c of the multiple dwelling law.
     7    [(c) (i) If the respondent shall  fail  to  comply  with  the  court's
     8  directions  with respect to direct payment to the petitioner or making a
     9  deposit as directed by the court of the full amount of the rent  or  use
    10  and occupancy required to be deposited, the court upon an application by
    11  the petitioner shall dismiss without prejudice the defenses and counter-
    12  claims  interposed  by  the respondent and grant judgment for petitioner
    13  unless respondent has interposed the defense of payment and  shows  that
    14  the  amount  required  to  be  deposited has previously been paid to the
    15  petitioner.
    16    (ii)] (d) (i) In the  event  that  the  respondent  [makes  a  deposit
    17  required  by  this  subdivision  but] fails to deposit with the court or
    18  pay, as the case may be, upon the due date, all rent or use and occupan-
    19  cy which may become due [up to the time of the entry of judgment] subse-
    20  quent to the issuance of the court's deposit order, the  court  upon  an
    21  application  of  the  petitioner [shall] may order an immediate trial of
    22  the issues raised in the respondent's answer. An "immediate trial" shall
    23  mean that no further adjournments of the proceeding [without  petitioner
    24  consent] upon respondent's sole request shall be granted, the case shall
    25  be  assigned  by the administrative judge to a trial ready part and such
    26  trial shall commence as soon as practicable  and  continue  day  to  day
    27  until  completed.  [There shall be no stay granted of such trial without
    28  an order to respondent to pay rent or use and occupancy due pursuant  to
    29  this subdivision and rent or use and occupancy as it becomes due.
    30    (iii)]  (ii)  The  court  [shall not] may extend any time provided for
    31  such deposit under this subdivision [without the consent  of  the  peti-
    32  tioner] for good cause shown.
    33    [(iv)]  (iii)  Upon  the entry of the final judgment in the proceeding
    34  such deposits shall be credited against any judgment amount awarded and,
    35  without further order of the court, be paid in accordance with the judg-
    36  ment.
    37    [(v) The provisions of this paragraph requiring the deposit of rent or
    38  use and occupancy as it becomes due shall not be waived by the court.
    39    (d)] (e) The court may dismiss any summary proceeding  without  preju-
    40  dice  and  with  costs to the respondent by reason of excessive adjourn-
    41  ments requested by the petitioner.
    42    [(e) The provisions of this subdivision shall not be construed  as  to
    43  deprive  a  respondent  of a trial of any defenses or counterclaims in a
    44  separate action if such defenses or counterclaims are dismissed  without
    45  prejudice.]
    46    (f) Under no circumstances shall the respondent's failure or inability
    47  to  pay  use and occupancy as ordered by the court constitute a basis to
    48  dismiss any of the respondent's defenses or counterclaims, with or with-
    49  out prejudice to their assertion in another forum.
    50    § 18. Section 747-a of the real property actions and  proceedings  law
    51  is REPEALED.
    52    § 19. Section 749 of the real property actions and proceedings law, as
    53  added  by  chapter  312 of the laws of 1962, subdivision 2 as amended by
    54  chapter 205 of the laws of 2018 and subdivision 3 as amended by  chapter
    55  192 of the laws of 1975, is amended to read as follows:

        S. 6458                            52                            A. 8281

     1    § 749. Warrant. 1. Upon rendering a final judgment for petitioner, the
     2  court  shall issue a warrant directed to the sheriff of the county or to
     3  any constable or marshal of the city in which the property, or a portion
     4  thereof, is situated, or, if it is not situated in a city, to any const-
     5  able  of  any  town  in the county, describing the property, stating the
     6  earliest date upon which execution may occur pursuant to  the  order  of
     7  the  court,  and  commanding  the  officer  to remove all persons[, and,
     8  except where the case is within section 715, to put the petitioner  into
     9  full  possession]  named  in  the proceeding, provided upon a showing of
    10  good cause, the court may issue a stay of re-letting  or  renovation  of
    11  the premises for a reasonable period of time.
    12    2. (a) The officer to whom the warrant is directed and delivered shall
    13  give  at least [seventy-two hours] fourteen days' notice, [excluding any
    14  period which occurs on a Saturday, Sunday or a public holiday,] in writ-
    15  ing and in the manner prescribed in this article for the  service  of  a
    16  notice  of  petition,  to the person or persons to be evicted or dispos-
    17  sessed and shall execute the warrant on a business day between the hours
    18  of sunrise and sunset.
    19    (b) Such officer shall check such  property  for  the  presence  of  a
    20  companion  animal  prior  to  executing such warrant and coordinate with
    21  such person or persons to be evicted or dispossessed to provide for  the
    22  safe  and  proper  care  of  such  companion  animal or animals. If such
    23  persons to be evicted or dispossessed cannot be found  after  reasonable
    24  efforts  are  made to coordinate with such persons, or if such person is
    25  found and declines to take possession of such animal  or  animals,  such
    26  officer  shall  promptly  coordinate  with  the duly incorporated humane
    27  society, duly incorporated society for  the  prevention  of  cruelty  to
    28  animals  or  pound maintained by or under contract or agreement with the
    29  municipality in which the animal was found for the safe removal of  such
    30  companion  animal or animals. Such officer shall make reasonable efforts
    31  to provide notice to the person or persons to be evicted  regarding  the
    32  location  of  such  companion  animal  or  animals.  Disposition of such
    33  companion animal or animals shall be in accordance with  the  provisions
    34  of  sections one hundred seventeen and three hundred seventy-four of the
    35  agriculture and markets law, and all other laws, rules  and  regulations
    36  that govern the humane treatment of animals. "Companion animal," as used
    37  in  this  paragraph, shall have the same meaning as provided in subdivi-
    38  sion five of section three hundred fifty of the agriculture and  markets
    39  law.
    40    3.  [The  issuing of a warrant for the removal of a tenant cancels the
    41  agreement under which the person removed held the premises,  and  annuls
    42  the  relation  of  landlord  and  tenant, but nothing] Nothing contained
    43  herein shall deprive the court of the  power  to  stay  or  vacate  such
    44  warrant  for  good  cause  shown  prior  to the execution thereof, or to
    45  restore the tenant to possession subsequent to execution of the warrant.
    46  In a judgment for non-payment of rent, the court shall vacate a  warrant
    47  upon  tender  or deposit with the court of the full rent due at any time
    48  prior to its execution,  unless  the  petitioner  establishes  that  the
    49  tenant  withheld  the  rent  due in bad faith. Petitioner may recover by
    50  action any sum of money which was payable at the time when  the  special
    51  proceeding was commenced and the reasonable value of the use and occupa-
    52  tion  to  the  time  when the warrant was issued, for any period of time
    53  with respect to which the agreement does  not  make  any  provision  for
    54  payment of rent.
    55    §  20.  Subdivision  4 of section 751 of the real property actions and
    56  proceedings law is REPEALED.

        S. 6458                            53                            A. 8281

     1    § 21. Section 753 of the real property actions and proceedings law, as
     2  added by chapter 312 of  the  laws  of  1962,  the  section  heading  as
     3  amended, subdivision 4 as added and subdivision 5 as renumbered by chap-
     4  ter  870 of the laws of 1982 and subdivision 1 as amended by chapter 305
     5  of the laws of 1963, is amended to read as follows:
     6    §  753. Stay [where tenant holds over] in premises occupied for dwell-
     7  ing purposes [in city of New York]. 1. In a proceeding  to  recover  the
     8  possession  of  premises [in the city of New York] occupied for dwelling
     9  purposes, other than a room or rooms in  an  hotel,  lodging  house,  or
    10  rooming  house,  [upon  the ground that the occupant is holding over and
    11  continuing in possession of the premises after  the  expiration  of  his
    12  term  and  without the permission of the landlord, or, in a case where a
    13  new lessee is entitled to possession, without the permission of the  new
    14  lessee,]  the  court, on application of the occupant, may stay the issu-
    15  ance of a warrant and also stay any execution to collect  the  costs  of
    16  the  proceeding  for a period of not more than [six months] one year, if
    17  it appears that the premises are used for dwelling  purposes;  that  the
    18  application  is made in good faith; that the applicant cannot within the
    19  neighborhood secure suitable premises similar to those occupied by [him]
    20  the applicant and that  [he]  the  applicant  made  due  and  reasonable
    21  efforts  to secure such other premises, or that by reason of other facts
    22  it would occasion extreme hardship to [him or his] the applicant or  the
    23  applicant's  family if the stay were not granted. In determining whether
    24  refusal to grant a stay would occasion extreme hardship, the court shall
    25  consider serious ill health,  significant  exacerbation  of  an  ongoing
    26  condition,  a child's enrollment in a local school, and any other exten-
    27  uating life circumstances affecting the ability of the applicant or  the
    28  applicant's  family to relocate and maintain quality of life.  The court
    29  shall consider any substantial hardship the stay may impose on the land-
    30  lord in determining whether to grant the stay or in setting  the  length
    31  or other terms of the stay.  In an application brought outside a city of
    32  one  million or more, the term "neighborhood" shall be construed to mean
    33  (i) the same town, village or city where the applicant now  resides,  or
    34  (ii) if the applicant has school aged children residing with him or her,
    35  "neighborhood" shall mean the school district where such children attend
    36  or are eligible to attend.
    37    2.  Such  stay  shall  be granted and continue effective only upon the
    38  condition that the person against whom the  judgment  is  entered  shall
    39  make a deposit in court of the entire amount, or such installments ther-
    40  eof from time to time as the court may direct, for the occupation of the
    41  premises  for  the  period  of  the stay, at the rate for which [he] the
    42  applicant was liable as rent for the  month  immediately  prior  to  the
    43  expiration of [his] the applicant's term or [tenency] tenancy, plus such
    44  additional  amount, if any, as the court may determine to be the differ-
    45  ence between such rent and the reasonable rent or value of the  use  and
    46  occupation  of  the  premises; such deposit [shall] may also include all
    47  rent unpaid by the occupant prior to the period of the stay. The  amount
    48  of  such  deposit  shall be determined by the court upon the application
    49  for the stay and such determination shall be  final  and  conclusive  in
    50  respect  to  the amount of such deposit, and the amount thereof shall be
    51  paid into court, in such manner and in such installments, if any, as the
    52  court may direct. A separate account shall be kept of the amount to  the
    53  credit of each proceeding, and all such payments shall be deposited in a
    54  bank  or trust company and shall be subject to the check of the clerk of
    55  the court, if there be one, or otherwise of the court. The clerk of  the
    56  court,  if  there be one, and otherwise the court shall pay to the land-

        S. 6458                            54                            A. 8281

     1  lord or [his] the landlord's duly authorized agent, the amount  of  such
     2  deposit in accordance with the terms of the stay or the further order of
     3  the court.
     4    3.  The  provisions  of  this  section shall not apply to a proceeding
     5  [where the petitioner shows to the satisfaction of  the  court  that  he
     6  desires  in good faith to recover the premises for the purpose of demol-
     7  ishing same with the intention of constructing a new building, plans for
     8  which new building shall have been duly filed and approved by the proper
     9  authority; nor shall it apply to a  proceeding]  to  recover  possession
    10  upon the ground that an occupant is holding over and is objectionable if
    11  the  landlord  shall establish by competent evidence to the satisfaction
    12  of the court that such occupant is objectionable.
    13    4. In the event that such proceeding is based upon a  claim  that  the
    14  tenant  or lessee has breached a provision of the lease, the court shall
    15  grant a [ten] thirty day stay of issuance of the warrant,  during  which
    16  time the respondent may correct such breach.
    17    5.  Any  provision  of  a lease or other agreement whereby a lessee or
    18  tenant waives any provision of this  section  shall  be  deemed  against
    19  public policy and void.
    20    § 22. Section 756 of the real property actions and proceedings law, as
    21  added by chapter 913 of the laws of 1965, is amended to read as follows:
    22    §  756.  Stay of summary proceedings or actions for rent under certain
    23  conditions.  In the event that utilities are discontinued in any part of
    24  a [multiple] dwelling because of the failure of the  landlord  or  other
    25  person  having  control of said [multiple] dwelling to pay for utilities
    26  for which he may have contracted, any proceeding to dispossess a  tenant
    27  from  said building or an action against any tenant of said building for
    28  rent shall be stayed until such time as the landlord  or  person  having
    29  control of said [multiple] dwelling pays the amount owing for said util-
    30  ities  and  until  such  time  as  the utilities are restored to working
    31  order.
    32    § 23. The real property actions and  proceedings  law  is  amended  by
    33  adding a new section 757 to read as follows:
    34    §  757.  Eviction  as  the  result of foreclosure. In the event that a
    35  lessee is removed from real property pursuant to this article,  and  the
    36  leased  real property was the subject of a foreclosure proceeding pursu-
    37  ant to this chapter or the subject of a tax foreclosure proceeding,  the
    38  court  records relating to any such lessee shall be sealed and be deemed
    39  confidential. No disclosure or use of such information relating  to  any
    40  such  lessee  shall be authorized, and the use of such information shall
    41  be prohibited.
    42    § 24. The real property actions and  proceedings  law  is  amended  by
    43  adding a new section 768 to read as follows:
    44    §  768.  Unlawful eviction. 1. (a) It shall be unlawful for any person
    45  to evict or attempt to evict an occupant of  a  dwelling  unit  who  has
    46  lawfully occupied the dwelling unit for thirty consecutive days or long-
    47  er  or who has entered into a lease with respect to such dwelling except
    48  to the extent permitted by law pursuant to  a  warrant  of  eviction  or
    49  other  order  of  a  court  of  competent jurisdiction or a governmental
    50  vacate order by:
    51    (i) using or threatening the use of force to induce  the  occupant  to
    52  vacate the dwelling unit; or
    53    (ii)  engaging  in  a  course  of  conduct which interferes with or is
    54  intended to interfere with or disturb  the  comfort,  repose,  peace  or
    55  quiet  of such occupant in the use or occupancy of the dwelling unit, to

        S. 6458                            55                            A. 8281

     1  induce the occupant to vacate  the  dwelling  unit  including,  but  not
     2  limited to, the interruption or discontinuance of essential services; or
     3    (iii)  engaging  or  threatening  to engage in any other conduct which
     4  prevents or is intended to prevent such occupant from the  lawful  occu-
     5  pancy  of  such  dwelling  unit  or to induce the occupant to vacate the
     6  dwelling unit including, but not limited  to,  removing  the  occupant's
     7  possessions from the dwelling unit, removing the door at the entrance to
     8  the dwelling unit; removing, plugging or otherwise rendering the lock on
     9  such  entrance  door  inoperable,  or changing the lock on such entrance
    10  door without supplying the occupant with a key.
    11    (b) It shall be unlawful for an owner of a dwelling unit  to  fail  to
    12  take  all  reasonable  and  necessary  action to restore to occupancy an
    13  occupant of a dwelling unit who either vacates, has been removed from or
    14  is otherwise prevented from occupying a dwelling unit as the  result  of
    15  any  of the acts or omissions prescribed in paragraph (a) of this subdi-
    16  vision and to provide to such  occupant  a  dwelling  unit  within  such
    17  dwelling  suitable for occupancy, after being requested to do so by such
    18  occupant or the representative of such occupant, if  such  owner  either
    19  committed  such unlawful acts or omissions or knew or had reason to know
    20  of such unlawful acts  or  omissions,  or  if  such  acts  or  omissions
    21  occurred within seven days prior to such request.
    22    2.  Criminal  and  civil  penalties.  (a) Any person who intentionally
    23  violates or assists in the violation of any of the  provisions  of  this
    24  section  shall  be  guilty of a class A misdemeanor. Each such violation
    25  shall be a separate and distinct offense.
    26    (b) Such person shall also be subject to a civil penalty of  not  less
    27  than one thousand nor more than ten thousand dollars for each violation.
    28  Each  such  violation  shall  be a separate and distinct offense. In the
    29  case of a failure to take all reasonable and necessary action to restore
    30  an occupant pursuant  to  paragraph  (b)  of  subdivision  one  of  this
    31  section,  such person shall be subject to an additional civil penalty of
    32  not more than one hundred dollars per day from the date on which  resto-
    33  ration  to  occupancy  is  requested until the date on which restoration
    34  occurs, provided, however, that such period shall not exceed six months.
    35    § 25. The section heading and subdivision 1 of section  7-108  of  the
    36  general  obligations  law,  as added by chapter 917 of the laws of 1984,
    37  are amended and a new subdivision 1-a is added to read as follows:
    38    [Liability of a grantee or assignee for  deposits]  Deposits  made  by
    39  tenants [upon conveyance] of non-rent stabilized dwelling units. 1. This
    40  section shall apply to all dwelling units [with written leases] in resi-
    41  dential  premises  [containing  six  or  more  dwelling units and to all
    42  dwelling units subject to the city rent and rehabilitation  law  or  the
    43  emergency  housing  rent  control  law],  unless  such  dwelling unit is
    44  specifically referred to in section 7-107 of this [chapter] title.
    45    1-a. Except in dwelling units subject to the city rent  and  rehabili-
    46  tation  law  or  the emergency housing rent control law, continuing care
    47  retirement communities licensed pursuant to article forty-six or  forty-
    48  six-A  of  the  public  health  law,  assisted living providers licensed
    49  pursuant to article forty-six-B of the public   health law,  adult  care
    50  facilities  licensed  pursuant  to  article seven of the social services
    51  law, senior residential communities that have submitted an offering plan
    52  to the attorney general, or not-for-profit independent retirement commu-
    53  nities that offer personal emergency response, housekeeping, transporta-
    54  tion and meals to their residents:
    55    (a) No deposit or advance shall exceed the amount of one month's  rent
    56  under such contract.

        S. 6458                            56                            A. 8281

     1    (b) The entire amount of the deposit or advance shall be refundable to
     2  the  tenant  upon  the  tenant's  vacating of the premises except for an
     3  amount lawfully retained for the reasonable and itemized  costs  due  to
     4  non-payment  of rent, damage caused by the tenant beyond normal wear and
     5  tear,  non-payment  of  utility charges payable directly to the landlord
     6  under the terms of the lease or tenancy, and moving and storage  of  the
     7  tenant's  belongings.  The  landlord  may  not  retain any amount of the
     8  deposit for costs relating to ordinary wear and  tear  of  occupancy  or
     9  damage caused by a prior tenant.
    10    (c)  After initial lease signing but before the tenant begins occupan-
    11  cy, the landlord shall offer the tenant the opportunity to  inspect  the
    12  premises  with  the  landlord  or  the landlord's agent to determine the
    13  condition of the property. If the tenant requests such  inspection,  the
    14  parties shall execute a written agreement before the tenant begins occu-
    15  pancy of the unit attesting to the condition of the property and specif-
    16  ically  noting any existing defects or damages. Upon the tenant's vacat-
    17  ing of the premises, the landlord may  not  retain  any  amount  of  the
    18  deposit or advance due to any condition, defect, or damage noted in such
    19  agreement.  The  agreement shall be admissible as evidence of the condi-
    20  tion of the premises at the beginning of occupancy only  in  proceedings
    21  related to the return or amount of the security deposit.
    22    (d)  Within  a  reasonable  time  after notification of either party's
    23  intention to terminate the tenancy, unless  the  tenant  terminates  the
    24  tenancy  with less than two weeks' notice, the landlord shall notify the
    25  tenant in writing of the tenant's right to request an inspection  before
    26  vacating  the  premises  and  of the tenant's right to be present at the
    27  inspection. If the tenant requests such an  inspection,  the  inspection
    28  shall  be  made  no  earlier  than  two weeks and no later than one week
    29  before the end of the tenancy.  The  landlord  shall  provide  at  least
    30  forty-eight hours written notice of the date and time of the inspection.
    31  After  the  inspection,  the  landlord  shall provide the tenant with an
    32  itemized statement specifying repairs or cleaning that are  proposed  to
    33  be  the  basis  of  any deductions from the tenant's deposit. The tenant
    34  shall have the opportunity to cure any such condition before the end  of
    35  the  tenancy.    Any statement produced pursuant to this paragraph shall
    36  only be admissible in proceedings related to the return or amount of the
    37  security deposit.
    38    (e) Within fourteen days after the tenant has  vacated  the  premises,
    39  the  landlord  shall provide the tenant with an itemized statement indi-
    40  cating the basis for the amount of the deposit  retained,  if  any,  and
    41  shall  return  any  remaining portion of the deposit to the tenant. If a
    42  landlord fails to provide the tenant  with  the  statement  and  deposit
    43  within fourteen days, the landlord shall forfeit any right to retain any
    44  portion of the deposit.
    45    (f)  In any action or proceeding disputing the amount of any amount of
    46  the deposit retained, the landlord shall bear the burden of proof as  to
    47  the reasonableness of the amount retained.
    48    (g)  Any  person who violates the provisions of this subdivision shall
    49  be liable for actual damages, provided a person found to have  willfully
    50  violated  this subdivision shall be liable for punitive damages of up to
    51  twice the amount of the deposit or advance.
    52    § 26. Subdivision 1 of section 212 of the judiciary law is amended  by
    53  adding a new paragraph (x) to read as follows:
    54    (x)  Not  permit  the  unified court system to sell any data regarding
    55  judicial proceedings related to residential tenancy, rent or eviction to
    56  any third party. Such prohibition includes  data  collected,  stored  or

        S. 6458                            57                            A. 8281

     1  utilized  by any third-party vendors who have contracts with the unified
     2  court system.
     3    §  27.  1.  (a)  There  is hereby created a temporary commission to be
     4  known as the "New York state temporary commission  on  housing  security
     5  and tenant protection," which shall be charged with studying the impacts
     6  of  the  statewide housing security and tenant protection act of 2019 on
     7  tenants, landlords, and the court system, and recommending the implemen-
     8  tation of legislation, regulations and rules to further  improve  tenant
     9  protections in New York.
    10    (b)  The commission shall consist of ten members: (i) the commissioner
    11  of housing and community renewal shall  serve  ex  officio;  (ii)  three
    12  members  shall  be  appointed  by  the governor, one of whom shall be an
    13  attorney with significant housing court experience employed  by  a  not-
    14  for-profit legal services firm, one of whom shall be a landlord, and one
    15  of  whom shall be a retired judge or justice of the unified court system
    16  with significant experience in housing court; (iii) two members shall be
    17  appointed by the temporary president of  the  senate;  (iv)  one  member
    18  shall be appointed by the minority leader of the senate; (v) two members
    19  shall  be  appointed by the speaker of the assembly; and (vi) one member
    20  shall be appointed by the minority leader of the assembly.  The  commis-
    21  sioner  of housing and community renewal shall serve as the chair of the
    22  commission. Vacancies in the commission shall  be  filled  in  the  same
    23  manner as the members whose vacancy is being filled was appointed.
    24    (c)  The  members  of the commission shall receive no compensation for
    25  their services as members, but shall be allowed their actual and  neces-
    26  sary  expenses incurred in the performance of their duties. No member of
    27  the commission shall be  disqualified  from  holding  any  other  public
    28  office  or  employment,  nor  shall he or she forfeit any such office or
    29  employment by reason of his or her appointment pursuant to this section,
    30  notwithstanding the provisions of any general,  special  or  local  law,
    31  regulation, ordinance or city charter.
    32    2. To the maximum extent feasible, the commission shall be entitled to
    33  request  and receive and shall utilize and be provided with such facili-
    34  ties, resources and data of any  department,  division,  board,  bureau,
    35  committee,  agency  or  public  authority  of the state or any political
    36  subdivision thereof as it may reasonably request to properly  carry  out
    37  its powers and duties pursuant to this act.
    38    3.  On  or  before December 31, 2022, the commission shall transmit to
    39  the governor, the legislature, and the chief administrator of the courts
    40  a report containing its findings and recommendations.  The  commissioner
    41  of  housing  and community renewal shall post the report on its website.
    42  Upon the making of its report, the commission shall be deemed dissolved.
    43    § 28. Severability. If any provision of this act, or  any  application
    44  of  any  provision  of  this  act, is held to be invalid, that shall not
    45  affect the validity or effectiveness of any other provision of this act,
    46  or of any other application of any provision of this act, which  can  be
    47  given effect without that provision or application; and to that end, the
    48  provisions and applications of this act are severable.
    49    §  29.  This  act  shall  take  effect  immediately and shall apply to
    50  actions and proceedings commenced  on  or  after  such  effective  date;
    51  provided,  however, that sections three, six and seven shall take effect
    52  on the one hundred twentieth day after this act shall have become a law;
    53  provided, further, that section  twenty-five  of  this  act  shall  take
    54  effect  on  the thirtieth day after this act shall have become a law and
    55  shall apply to any lease or rental agreement or renewal of  a  lease  or
    56  rental  agreement  entered  into  on  or after such date; and, provided,

        S. 6458                            58                            A. 8281

     1  further, section five of this act shall take effect on the thirtieth day
     2  after this act shall have become a law.

     3                                   PART N

     4    Section  1.  Section 352-eeee of the general business law, as added by
     5  chapter 555 of the laws of 1982, subdivision 3 as amended by chapter 685
     6  of the laws of 1988, is amended to read as follows:
     7    § 352-eeee. Conversions to cooperative or condominium ownership in the
     8  city of New York. 1. As used in this section, the  following  words  and
     9  terms shall have the following meanings:
    10    (a)  "Plan".  Every  offering statement or prospectus submitted to the
    11  department of law pursuant to section three hundred fifty-two-e of  this
    12  article for the conversion of a building or group of buildings or devel-
    13  opment  from  residential  rental  status  to cooperative or condominium
    14  ownership or other form of cooperative interest in realty, other than an
    15  offering statement or prospectus for such conversion pursuant to article
    16  two, eight or eleven of the private housing finance law.
    17    (b) "Non-eviction plan". A plan which may not  be  declared  effective
    18  until  written  purchase agreements have been executed and delivered for
    19  at least [fifteen] fifty-one percent of all dwelling units in the build-
    20  ing or group of buildings or development by bona fide tenants [in  occu-
    21  pancy  or  bona fide purchasers who represent that they intend that they
    22  or one or more members of their immediate family intend  to  occupy  the
    23  unit when it becomes vacant. As to tenants] who were in occupancy on the
    24  date  a letter was issued by the attorney general accepting the plan for
    25  filing[, the]. The purchase agreement shall be  executed  and  delivered
    26  pursuant to an offering made in good faith without fraud and discrimina-
    27  tory repurchase agreements or other discriminatory inducements.
    28    (c)  "Eviction  plan".  A plan which, submitted prior to the effective
    29  date of the chapter of the laws of two thousand  nineteen  that  amended
    30  this  section, pursuant to the provisions of this section, can result in
    31  the eviction of a non-purchasing tenant by reason of the tenant  failing
    32  to  purchase  pursuant  thereto, and which may not be declared effective
    33  until at least fifty-one percent of the bona fide tenants  in  occupancy
    34  of  all dwelling units in the building or group of buildings or develop-
    35  ment on the date the offering statement or prospectus was  accepted  for
    36  filing by the attorney general (excluding, for the purposes of determin-
    37  ing  the number of bona fide tenants in occupancy on such date, eligible
    38  senior citizens and eligible disabled persons) shall have  executed  and
    39  delivered  written  agreements to purchase under the plan pursuant to an
    40  offering made in good faith without fraud  and  with  no  discriminatory
    41  repurchase agreements or other discriminatory inducements.
    42    (d) "Purchaser under the plan". A person who owns the shares allocated
    43  to a dwelling unit or who owns such dwelling unit itself.
    44    (e)  "Non-purchasing tenant". A person who has not purchased under the
    45  plan and who is a tenant entitled to possession at the time the plan  is
    46  declared  effective or a person to whom a dwelling unit is rented subse-
    47  quent to the effective date.  A person who sublets a dwelling unit  from
    48  a purchaser under the plan shall not be deemed a non-purchasing tenant.
    49    (f)  "Eligible senior citizens". Non-purchasing tenants who are sixty-
    50  two years of age or older on the date  the  plan  is  submitted  to  the
    51  department  of  law or on the date the attorney general has accepted the
    52  plan for filing, and the spouses of any such tenants on such  date,  and
    53  who have elected, within sixty days of the date the plan is submitted to
    54  the  department  of law or on the date the attorney general has accepted

        S. 6458                            59                            A. 8281

     1  the plan for filing, on forms promulgated by the  attorney  general  and
     2  presented  to  such  tenants  by  the  offeror, to become non-purchasing
     3  tenants under  the  provisions  of  this  section;  provided  that  such
     4  election shall not preclude any such tenant from subsequently purchasing
     5  the dwelling unit on the terms then offered to tenants in occupancy.
     6    (g)  "Eligible  disabled  persons". Non-purchasing tenants who have an
     7  impairment which results from anatomical, physiological or psychological
     8  conditions, other than addiction to alcohol, gambling, or any controlled
     9  substance, which are demonstrable by medically acceptable  clinical  and
    10  laboratory diagnostic techniques, and which are expected to be permanent
    11  and  which  prevent  the tenant from engaging in any substantial gainful
    12  employment on the date the plan is submitted to the department of law or
    13  on the date the attorney general has accepted the plan for  filing,  and
    14  the  spouses  of  any  such  tenants on such date, and who have elected,
    15  within sixty days of the date the plan is submitted to the department of
    16  law or on the date the  attorney  general  has  accepted  the  plan  for
    17  filing,  on  forms  promulgated by the attorney general and presented to
    18  such tenants by the offeror, to become non-purchasing tenants under  the
    19  provisions  of  this  section; provided, however, that if the disability
    20  first occurs after acceptance of the plan for filing, then such election
    21  may be made within sixty days following the  onset  of  such  disability
    22  unless  during the period subsequent to sixty days following the accept-
    23  ance of the plan for filing but prior  to  such  election,  the  offeror
    24  accepts  a  written agreement to purchase the apartment from a bona fide
    25  purchaser; and provided further that such election  shall  not  preclude
    26  any  such  tenant  from subsequently purchasing the dwelling unit or the
    27  shares allocated thereto on the terms then offered to tenants  in  occu-
    28  pancy.
    29    2.  The  attorney  general shall refuse to issue a letter stating that
    30  the offering statement or prospectus  required  in  subdivision  one  of
    31  section  three  hundred  fifty-two-e  of this [chapter] article has been
    32  filed whenever it appears that  the  offering  statement  or  prospectus
    33  offers  for sale residential cooperative apartments or condominium units
    34  pursuant to a plan unless:
    35    (a) The plan provides that it will be deemed abandoned, void and of no
    36  effect if it does not become effective within fifteen  months  from  the
    37  date  of  issue  of  the letter of the attorney general stating that the
    38  offering statement or prospectus has been accepted for  filing  and,  in
    39  the  event  of  such abandonment, no new plan for the conversion of such
    40  building or group of buildings or development shall be submitted to  the
    41  attorney general for at least twelve months after such abandonment.
    42    (b) The plan provides either that it is an eviction plan or that it is
    43  a non-eviction plan.
    44    (c) The plan provides, if it is a non-eviction plan, as follows:
    45    (i)  The  plan  may  not  be declared effective until written purchase
    46  agreements have been executed  and  delivered  for  at  least  [fifteen]
    47  fifty-one  percent  of  all  dwelling  units in the building or group of
    48  buildings or development subscribed for by bona fide tenants in occupan-
    49  cy [or bona fide purchasers who represent that they intend that they  or
    50  one  or  more members of their immediate family occupy the dwelling unit
    51  when it becomes vacant. As to tenants who were in occupancy] on the date
    52  a letter was issued by the  attorney  general  accepting  the  plan  for
    53  filing[,  the] for which purchase agreement shall be executed and deliv-
    54  ered pursuant to an  offering  made  without  discriminatory  repurchase
    55  agreements or other discriminatory inducements.

        S. 6458                            60                            A. 8281

     1    (ii)  No  eviction  proceedings  will be commenced at any time against
     2  non-purchasing tenants for failure  to  purchase  or  any  other  reason
     3  applicable  to expiration of tenancy; provided that such proceedings may
     4  be commenced for non-payment of rent, illegal use or  occupancy  of  the
     5  premises,  refusal of reasonable access to the owner or a similar breach
     6  by the non-purchasing tenant of his obligations  to  the  owner  of  the
     7  dwelling unit or the shares allocated thereto; and provided further that
     8  an  owner  of a unit or of the shares allocated thereto may not commence
     9  an action to recover possession of a dwelling unit from a non-purchasing
    10  tenant on the grounds that he seeks the dwelling unit for  the  use  and
    11  occupancy of himself or his family.
    12    (iii) No eviction proceedings will be commenced, except as hereinafter
    13  provided,  at any time against either eligible senior citizens or eligi-
    14  ble disabled persons. The rentals of eligible senior citizens and eligi-
    15  ble disabled persons who reside in dwelling units not subject to govern-
    16  ment regulation as to  rentals  and  continued  occupancy  and  eligible
    17  senior  citizens  and  eligible  disabled persons who reside in dwelling
    18  units with respect to which government  regulation  as  to  rentals  and
    19  continued occupancy is eliminated or becomes inapplicable after the plan
    20  has  been  accepted  for  filing  shall not be subject to unconscionable
    21  increases beyond ordinary rentals for comparable apartments  during  the
    22  period  of  their  occupancy  considering, in determining comparability,
    23  such factors as building services, level of  maintenance  and  operating
    24  expenses;  provided  that such proceedings may be commenced against such
    25  tenants for non-payment of rent, illegal use or occupancy of  the  prem-
    26  ises,  refusal  of reasonable access to the owner or a similar breach by
    27  the tenant of his obligations to the owner of the dwelling unit  or  the
    28  shares allocated thereto.
    29    (iv) Eligible senior citizens and eligible disabled persons who reside
    30  in  dwelling  units  subject  to government regulation as to rentals and
    31  continued occupancy shall continue to be subject thereto.
    32    (v) The rights granted under the plan to eligible senior citizens  and
    33  eligible  disabled persons may not be abrogated or reduced notwithstand-
    34  ing any expiration of, or amendment to, this section.
    35    (vi) Any offeror who disputes the election by a person to be an eligi-
    36  ble senior citizen or an eligible disabled  person  must  apply  to  the
    37  attorney general within thirty days of the receipt of the election forms
    38  for  a  determination by the attorney general of such person's eligibil-
    39  ity. The attorney general shall, within thirty  days  thereafter,  issue
    40  his determination of eligibility. The foregoing shall, in the absence of
    41  fraud,  be  the  sole  method  for determining a dispute as to whether a
    42  person is an eligible senior citizen or an eligible disabled person. The
    43  determination of the attorney general shall be reviewable only through a
    44  proceeding under article seventy-eight of the  civil  practice  law  and
    45  rules,  which proceeding must be commenced within thirty days after such
    46  determination by the attorney general becomes final.
    47    (vii) Non-purchasing tenants who reside in dwelling units  subject  to
    48  government regulation as to rentals and continued occupancy prior to the
    49  conversion of the building or group of buildings or development to coop-
    50  erative  or  [condominimum]  condominium  ownership shall continue to be
    51  subject thereto.
    52    [(iv)] (viii) The rentals of  non-purchasing  tenants  who  reside  in
    53  dwelling  units  not  subject to government regulation as to rentals and
    54  continued occupancy and non-purchasing tenants who  reside  in  dwelling
    55  units  with  respect  to  which  government regulation as to rentals and
    56  continued occupancy is eliminated or becomes inapplicable after the plan

        S. 6458                            61                            A. 8281

     1  has been accepted for filing  by  the  attorney  general  shall  not  be
     2  subject to unconscionable increases beyond ordinary rentals for compara-
     3  ble  apartments  during  the  period  of their occupancy. In determining
     4  comparability,  consideration shall be given to such factors as building
     5  services, level of maintenance and operating expenses.
     6    [(v)] (ix) The plan may not be amended at any time to provide that  it
     7  shall be an eviction plan.
     8    [(vi)]  (x)  The rights granted under the plan to purchasers under the
     9  plan and to non-purchasing tenants  may  not  be  abrogated  or  reduced
    10  notwithstanding any expiration of, or amendment to, this section.
    11    [(vii)] (xi) After the issuance of the letter from the attorney gener-
    12  al  stating that the offering statement or prospectus required in subdi-
    13  vision one of section three hundred fifty-two-e of this article has been
    14  [filed] accepted for filing, the offeror shall, on the thirtieth, sixti-
    15  eth, eighty-eighth and ninetieth day after such date and at  least  once
    16  every  thirty  days  until  the plan is declared effective or [is] aban-
    17  doned, as the case may be, and on the second day before  the  expiration
    18  of  any exclusive purchase period provided in a substantial amendment to
    19  the plan, (1) file with the attorney general a written statement,  under
    20  oath,  setting  forth the percentage of [the] bona fide tenants in occu-
    21  pancy of all dwelling units in the building or  group  of  buildings  or
    22  development  [subscribed  for  by bona fide tenants in occupancy or bona
    23  fide purchasers who represent that they intend that they or one or  more
    24  members  of  their  immediate  family  occupy  the dwelling unit when it
    25  becomes vacant as of the date of such statement and]  on  the  date  the
    26  offering statement or prospectus was accepted for filing by the attorney
    27  general  who  have executed and delivered written agreements to purchase
    28  under the plan as of the date of such statement, and (2) before noon  on
    29  the day such statement is filed post a copy of such statement in a prom-
    30  inent  place  accessible  to all tenants in each building covered by the
    31  plan.
    32    (xii) The tenants in  occupancy  on  the  date  the  attorney  general
    33  accepts  the  plan for filing shall have the exclusive right to purchase
    34  their dwelling units or the shares allocated  thereto  for  ninety  days
    35  after  the  plan  is accepted for filing by the attorney general, during
    36  which time a tenant's dwelling unit shall not be shown to a third  party
    37  unless  he  or she has, in writing, waived his or her right to purchase;
    38  subsequent to the expiration of such ninety  day  period,  a  tenant  in
    39  occupancy  of  a  dwelling unit who has not purchased shall be given the
    40  exclusive right for an additional period of six months from said expira-
    41  tion date to purchase said dwelling unit or the shares allocated thereto
    42  on the same terms  and  conditions  as  are  contained  in  an  executed
    43  contract to purchase said dwelling unit or shares entered into by a bona
    44  fide  purchaser,  such  exclusive right to be exercisable within fifteen
    45  days from the date of mailing  by  registered  mail  of  notice  of  the
    46  execution  of  a  contract of sale together with a copy of said executed
    47  contract to said tenant.
    48    (d) The plan provides, if it is an eviction plan, as follows:
    49    (i) The plan may not be declared effective unless at  least  fifty-one
    50  percent  of  the bona fide tenants in occupancy of all dwelling units in
    51  the building or group of buildings or development on the date the offer-
    52  ing statement or prospectus was accepted  for  filing  by  the  attorney
    53  general  (excluding,  for the purposes of determining the number of bona
    54  fide tenants in occupancy on such date,  eligible  senior  citizens  and
    55  eligible  disabled  persons)  shall  have executed and delivered written
    56  agreements to purchase under the plan pursuant to an  offering  made  in

        S. 6458                            62                            A. 8281

     1  good  faith  without  fraud and with no discriminatory repurchase agree-
     2  ments or other discriminatory inducements.
     3    (ii)  No eviction proceedings will be commenced against a non-purchas-
     4  ing tenant for failure to purchase or any  other  reason  applicable  to
     5  expiration  of tenancy until the later to occur of (1) the date which is
     6  the expiration date provided in such non-purchasing  tenant's  lease  or
     7  rental  agreement,  and (2) the date which is three years after the date
     8  on which the plan is  declared  effective.  Non-purchasing  tenants  who
     9  reside  in dwelling units subject to government regulation as to rentals
    10  and continued occupancy prior to conversion shall continue to be subject
    11  thereto during the period  of  occupancy  provided  in  this  paragraph.
    12  Thereafter,  if  a  tenant  has  not purchased, he may be removed by the
    13  owner of the dwelling unit or the  shares  allocated  to  such  dwelling
    14  unit.
    15    (iii) No eviction proceedings will be commenced, except as hereinafter
    16  provided,  at any time against either eligible senior citizens or eligi-
    17  ble disabled persons. The rentals of eligible senior citizens and eligi-
    18  ble disabled persons who reside in dwelling units not subject to govern-
    19  ment regulation as to  rentals  and  continued  occupancy  and  eligible
    20  senior  citizens  and  eligible  disabled persons who reside in dwelling
    21  units with respect to which government  regulation  as  to  rentals  and
    22  continued occupancy is eliminated or becomes inapplicable after the plan
    23  has  been  accepted  for  filing  shall not be subject to unconscionable
    24  increases beyond ordinary rentals for comparable apartments  during  the
    25  period  of  their  occupancy  considering, in determining comparability,
    26  such factors as building services, level of  maintenance  and  operating
    27  expenses;  provided  that such proceedings may be commenced against such
    28  tenants for non-payment of rent, illegal use or occupancy of  the  prem-
    29  ises,  refusal  of reasonable access to the owner or a similar breach by
    30  the tenant of his obligations to the owner of the dwelling unit  or  the
    31  shares allocated thereto.
    32    (iv) Eligible senior citizens and eligible disabled persons who reside
    33  in  dwelling  units  subject  to government regulation as to rentals and
    34  continued occupancy shall continue to be subject thereto.
    35    (v) The rights granted under the plan to eligible senior citizens  and
    36  eligible  disabled persons may not be abrogated or reduced notwithstand-
    37  ing any expiration of, or amendment to, this section.
    38    (vi) Any offeror who disputes the election by a person to be an eligi-
    39  ble senior citizen or an eligible disabled  person  must  apply  to  the
    40  attorney general within thirty days of the receipt of the election forms
    41  for  a  determination by the attorney general of such person's eligibil-
    42  ity. The attorney general shall, within thirty  days  thereafter,  issue
    43  his determination of eligibility. The foregoing shall, in the absence of
    44  fraud,  be  the  sole  method  for determining a dispute as to whether a
    45  person is an eligible senior citizen or an eligible disabled person. The
    46  determination of the attorney general shall be reviewable only through a
    47  proceeding under article seventy-eight of the  civil  practice  law  and
    48  rules,  which proceeding must be commenced within thirty days after such
    49  determination by the attorney general becomes final.
    50    (vii) After the issuance of the letter from the attorney general stat-
    51  ing that the offering statement or prospectus  required  in  subdivision
    52  one  of  section  three  hundred  fifty-two-e  of  this article has been
    53  accepted for filing, the offeror  shall,  on  the  thirtieth,  sixtieth,
    54  eighty-eighth and ninetieth [days] day after such date and at least once
    55  every  thirty days until the plan is declared effective or abandoned, as
    56  the case may be, and on the second day  before  the  expiration  of  any

        S. 6458                            63                            A. 8281

     1  exclusive  purchase  period  provided  in a substantial amendment to the
     2  plan, (1) file with the attorney  general  a  written  statement,  under
     3  oath,  setting forth the percentage of bona fide tenants in occupancy of
     4  all  dwelling units in the building or group of buildings or development
     5  on the date the offering statement or prospectus was accepted for filing
     6  by the attorney general who have executed and delivered  written  agree-
     7  ments  to  purchase under the plan as of the date of such statement, and
     8  (2) before noon on the day such statement is filed post a copy  of  such
     9  statement  in a prominent place accessible to all tenants in each build-
    10  ing covered by the plan.
    11    (viii) If the plan is amended  before  it  is  declared  effective  to
    12  provide  that it shall be a non-eviction plan, any person who has agreed
    13  to purchase under the plan prior to such amendment shall have  a  period
    14  of  thirty  days  after  receiving  written  notice of such amendment to
    15  revoke his agreement to purchase under the plan.
    16    (ix) The tenants in occupancy on the date the attorney general accepts
    17  the plan for filing shall have the exclusive  right  to  purchase  their
    18  dwelling units or the shares allocated thereto for ninety days after the
    19  plan is accepted for filing by the attorney general, during which time a
    20  tenant's  dwelling  unit  shall  not be shown to a third party unless he
    21  has, in writing, waived his right to purchase; subsequent to the expira-
    22  tion of such ninety day period, a tenant in occupancy of a dwelling unit
    23  who has not purchased shall be given the exclusive right  for  an  addi-
    24  tional  period  of six months from said expiration date to purchase said
    25  dwelling unit or the shares allocated thereto  on  the  same  terms  and
    26  conditions  as  are  contained  in an executed contract to purchase said
    27  dwelling unit or shares entered into by  a  bona  fide  purchaser,  such
    28  exclusive  right  to be exercisable within fifteen days from the date of
    29  mailing by registered mail of notice of the execution of a  contract  of
    30  sale together with a copy of said executed contract to said tenant.
    31    (e)  The  attorney general finds that an excessive number of long-term
    32  vacancies did not exist on the date that the offering statement or pros-
    33  pectus was first submitted to the department of law.  "Long-term  vacan-
    34  cies"  shall  mean  dwelling  units  not leased or occupied by bona fide
    35  tenants for more than five months prior to the date of  such  submission
    36  to  the  department  of  law.  "Excessive"  shall mean a vacancy rate in
    37  excess of the greater of (i) ten percent and (ii) a percentage  that  is
    38  double  the  normal  average  vacancy  rate for the building or group of
    39  buildings or development for two years prior to  the  January  preceding
    40  the date the offering statement or prospectus was first submitted to the
    41  department of law.
    42    (f)  The  attorney general finds that, following the submission of the
    43  offering statement or prospectus to the department of law,  each  tenant
    44  in the building or group of buildings or development was provided with a
    45  written  notice  stating  that such offering statement or prospectus has
    46  been submitted to the department of law for filing. Such notice shall be
    47  accompanied by a copy of the offering  statement  or  prospectus  and  a
    48  statement that the statements submitted pursuant to subparagraph [(vii)]
    49  (xi)  of  paragraph (c) [or subparagraph (vii) of paragraph (d)] of this
    50  subdivision, whichever is applicable, will be available  for  inspection
    51  and  copying at the office of the department of law where the submission
    52  was made and at the office of the offeror or  a  selling  agent  of  the
    53  offeror.  Such  notice  shall  also  be  accompanied by a statement that
    54  tenants or their representatives may physically inspect the premises  at
    55  any  time  subsequent to the submission of the plan to the department of
    56  law, during normal business hours, upon written request made by them  to

        S. 6458                            64                            A. 8281

     1  the  offeror, provided such representatives are registered architects or
     2  professional engineers licensed to practice in the state  of  New  York.
     3  Such  notice  shall  be sent to each tenant in occupancy on the date the
     4  plan is first submitted to the department of law.
     5    3.  All  dwelling  units  occupied  by non-purchasing tenants shall be
     6  managed by the same managing agent who manages all other dwelling  units
     7  in  the  building  or  group  of buildings or development. Such managing
     8  agent shall provide to non-purchasing tenants all services  and  facili-
     9  ties  required  by  law on a non-discriminatory basis. The offeror shall
    10  guarantee the obligation of the  managing  agent  to  provide  all  such
    11  services  and  facilities  until  such  time  as  the offeror surrenders
    12  control to the board of directors or board of managers,  at  which  time
    13  the  cooperative corporation or the condominium association shall assume
    14  responsibility for the provision of all services and facilities required
    15  by law on a non-discriminatory basis.
    16    4. It shall be unlawful for any person to  engage  in  any  course  of
    17  conduct,  including,  but not limited to, interruption or discontinuance
    18  of essential services, which substantially interferes with  or  disturbs
    19  the comfort, repose, peace or quiet of any tenant in his use or occupan-
    20  cy  of his dwelling unit or the facilities related thereto. The attorney
    21  general may apply to a court of  competent  jurisdiction  for  an  order
    22  restraining  such  conduct  and,  if  he  deems it appropriate, an order
    23  restraining the owner from selling the shares allocated to the  dwelling
    24  unit  or  the  dwelling  unit itself or from proceeding with the plan of
    25  conversion; provided that nothing contained herein shall  be  deemed  to
    26  preclude the tenant from applying on his own behalf for similar relief.
    27    5.  Any  local  legislative  body may adopt local laws and any agency,
    28  officer or public body may prescribe rules and regulations with  respect
    29  to  the  continued  occupancy  by  tenants  of  dwelling units which are
    30  subject to regulation as to rentals and continued occupancy pursuant  to
    31  law,  provided  that in the event that any such local law, rule or regu-
    32  lation shall be inconsistent with the provisions of  this  section,  the
    33  provisions of this section shall control.
    34    6.  Any  provision of a lease or other rental agreement which purports
    35  to waive a tenant's rights under this section or rules  and  regulations
    36  promulgated pursuant hereto shall be void as contrary to public policy.
    37    7.   The attorney general is hereby authorized and empowered to adopt,
    38  promulgate, amend and rescind suitable rules and  regulations  to  carry
    39  out  the  provisions  of  this section, including issuing waivers of the
    40  requirements of this section to the extent the  requirements  would  not
    41  carry out the intent of this section or the Martin Act.
    42    8. The provisions of this section shall only be applicable in the city
    43  of New York.
    44    §  2.  This  act shall take effect immediately and shall only apply to
    45  plans submitted pursuant to section 352-eeee of the general business law
    46  after the effective date of this act.

    47                                   PART O

    48    Section 1. Legislative findings. The legislature  finds  and  declares
    49  that:
    50    a.  Manufactured homes are a critical source of affordable housing for
    51  residents in New York state.
    52    b. Factors unique to home ownership in manufactured home parks in  New
    53  York  state  require  that  the  owners  of  such  manufactured homes be

        S. 6458                            65                            A. 8281

     1  protected from involuntary forfeiture of their homes due to unreasonable
     2  increases in lot rent.
     3    c.  Homeownership  in  such manufactured home parks differs from other
     4  forms of homeownership as well as from the  traditional  landlord-tenant
     5  relationship. Unlike other homeowners, because the manufactured homeown-
     6  ers  do  not  control  the land on which their manufactured homes exist,
     7  they have no control over this  substantial  portion  of  their  housing
     8  costs.
     9    d. Vacancies in existing manufactured home parks are extremely rare in
    10  New  York state, and the cost of relocating a manufactured home, even if
    11  such a vacancy exists, is prohibitively high and may not be feasible due
    12  to the structural integrity of the home.
    13    e. The manufactured homeowners' lack of bargaining power disrupts  the
    14  normal operation of market forces and renders such manufactured homeown-
    15  ers  captive to whatever terms a manufactured home park owner may choose
    16  to impose. This results in manufactured homeowners being evicted because
    17  of manufactured home parks' rents they can no longer afford,  and  as  a
    18  result,  losing  their  manufactured home and the equity they have built
    19  altogether because there is not an alternative site on  which  to  place
    20  such home.
    21    f. Under current law, manufactured homeowners who rent in manufactured
    22  home  parks  have  no legal remedy for an unjustifiable and unreasonable
    23  rent increase.
    24    g. The legislature therefore declares that in order to  prevent  hard-
    25  ship,  unjustifiable rent increases, loss of equity, and the dislocation
    26  of residents living in manufactured home parks, the provisions  of  this
    27  act  are necessary to protect the safety and general welfare of manufac-
    28  tured home owners and tenants.
    29    § 2. Subdivision a of section 233 of the real property law is  amended
    30  by adding two new paragraphs 6 and 7 to read as follows:
    31    6.  The term "rent-to-own contract" shall mean any agreement between a
    32  manufactured home park owner or operator and a manufactured home  renter
    33  which  provides  that  after  a  specified term or other contingency the
    34  manufactured home renter will take ownership of the rented home.
    35    7. The term "rent-to-own payment" shall mean any payment  or  payments
    36  made  by  a  manufactured home renter pursuant to a rent-to-own contract
    37  which are in addition to rental payments for the  rented  site  and  the
    38  rented home.
    39    §  3.  Paragraphs  1 and 6 of subdivision b of section 233 of the real
    40  property law, paragraph 1 as amended by chapter 566 of the laws of  1996
    41  and  paragraph  6  as  amended  by  chapter 561 of the laws of 2008, are
    42  amended to read as follows:
    43    [1. The manufactured  home  tenant  continues  in  possession  of  any
    44  portion  of  the  premises  after the expiration of his term without the
    45  permission of the manufactured home park owner or operator.]
    46    6. (i) The manufactured home park owner or operator proposes a  change
    47  in  the  use  of  the  land  comprising the manufactured home park, or a
    48  portion thereof, on which the manufactured home is located,  from  manu-
    49  factured  home  lot rentals to some other use, provided the manufactured
    50  home owner is given written notice of the proposed change of use and the
    51  manufactured home owner's need to secure other accommodations.  Whenever
    52  a  manufactured  home  park owner or operator gives a notice of proposed
    53  change of use to any manufactured home owner, the manufactured home park
    54  owner or operator shall, at the same time, give notice of  the  proposed
    55  change  of  use  to all other manufactured home owners or tenants in the
    56  manufactured home park who will be required  to  secure  other  accommo-

        S. 6458                            66                            A. 8281

     1  dations  as  a  result  of  such  proposed  change  of  use.    Eviction
     2  proceedings based on a change in use shall not  be  commenced  prior  to
     3  [six  months] two years from the service of notice of proposed change in
     4  use  [or  the  end  of  the lease term, whichever is later]. Such notice
     5  shall be served in the manner prescribed in section seven hundred  thir-
     6  ty-five of the real property actions and proceedings law or by certified
     7  mail, return receipt requested.
     8    (ii) Where a purchaser of a manufactured home park certified that such
     9  purchaser did not intend to change the use of the land pursuant to para-
    10  graph  (b)  of  subdivision two of section two hundred thirty-three-a of
    11  this article, no eviction proceedings based on a change of use shall  be
    12  commenced  until  the  expiration  of  sixty months from the date of the
    13  closing on the sale of the park.
    14    (iii) (A) The manufactured home park owner or operator  shall  provide
    15  the  manufactured home owner a stipend of up to fifteen thousand dollars
    16  per manufactured home owner, pursuant to a court order.  A  warrant  for
    17  eviction cannot be executed until the stipend has been paid to the manu-
    18  factured home owner being evicted.
    19    (B)  The court shall calculate the stipend based upon consideration of
    20  the following factors:
    21    (1) The cost of relocation of the manufactured home;
    22    (2) The number of manufactured homes in the same park  that  would  be
    23  receiving a stipend;
    24    (3) The amount the real property is being purchased for;
    25    (4)  The  value  of the real property the manufactured home is located
    26  on;
    27    (5) The value of the development  rights  attached  to  real  property
    28  parcel the manufactured home is located on; and
    29    (6) Any other factors the court determines are relevant in each case.
    30    (C)  In  the  event the manufactured home owner is not removed and the
    31  eviction proceeding is terminated  the  manufactured  home  owner  shall
    32  return  the stipend to the park owner. The weight to be afforded to each
    33  of the various factors is within the discretion of the trial court.
    34    § 4. Subdivision e of section 233 of the real property law, as amended
    35  by chapter 566 of the laws of 1996, is amended to read as follows:
    36    e. Leases. 1. The manufactured home park owner or operator shall offer
    37  every manufactured home tenant prior to occupancy,  the  opportunity  to
    38  sign  a  lease  for  a minimum of one year, which offer shall be made in
    39  writing. All lease offers, including initial and renewal  leases,  shall
    40  include  a  rider regarding tenant rights. Such rider shall be in a form
    41  approved or promulgated by the commissioner  of  housing  and  community
    42  renewal  and  which  shall  be  made available to manufactured home park
    43  owners and operators.
    44    2. (i) On or before, as appropriate, (a) the first day of  October  of
    45  each  calendar  year  with respect to a manufactured home owner [then in
    46  good standing] who is not currently a party to a written  lease  with  a
    47  manufactured  home  park owner or operator or (b) the ninetieth day next
    48  preceding the expiration date of any existing written  lease  between  a
    49  manufactured  home owner [then in good standing] and a manufactured home
    50  park owner or operator, the manufactured home  park  owner  or  operator
    51  shall  submit  to  each  such manufactured home owner a written offer to
    52  lease for a term of at least twelve months from  the  commencement  date
    53  thereof  unless  the manufactured home park owner or operator has previ-
    54  ously furnished the manufactured home owner with written notification of
    55  a proposed change of use pursuant to paragraph six of subdivision  b  of
    56  this  section. Any such offer shall include a copy of the proposed lease

        S. 6458                            67                            A. 8281

     1  containing such terms and conditions, including provisions for rent  and
     2  other  charges, as the manufactured home park owner shall deem appropri-
     3  ate; provided such terms and conditions are consistent  with  all  rules
     4  and regulations promulgated by the manufactured home park operator prior
     5  to  the date of the offer and are not otherwise prohibited or limited by
     6  applicable law. Such offer shall also contain a statement  advising  the
     7  manufactured  home  owner  that if he or she fails to execute and return
     8  the lease to the manufactured home park owner or operator within  thirty
     9  days  after  submission of such lease, the manufactured home owner shall
    10  be deemed to have declined the offer of a lease and shall not  have  any
    11  right  to  a lease from the manufactured home park owner or operator for
    12  the next succeeding twelve months.
    13    [(ii) For purposes of this paragraph, a manufactured home owner  shall
    14  be deemed in good standing if he or she is not in default in the payment
    15  of  more  than one month's rent to the manufactured home park owner, and
    16  is not in violation of paragraph three, four or five of subdivision b of
    17  this section. No manufactured home park owner or operator  shall  refuse
    18  to  provide a written offer to lease based on a default of rent payments
    19  or a violation of paragraph three, four or five of subdivision b of this
    20  section unless, at least thirty days prior to the last date on which the
    21  owner or operator would otherwise be required to  provide  such  written
    22  offer  to  lease,  the  owner or operator notifies the manufactured home
    23  owner, in writing, of the  default  in  rent  or  the  specific  grounds
    24  constituting  the  violation and such grounds continues up and until the
    25  fifth calendar day immediately preceding the  last  date  on  which  the
    26  written offer would otherwise be required to be made.
    27    (iii)]  (ii)  For purposes of this paragraph, the commencement date of
    28  any lease offered by the manufactured home park owner  to  the  manufac-
    29  tured  home  owner  shall be the ninetieth day after the date upon which
    30  the manufactured home park owner shall have provided the offer  required
    31  pursuant  to this paragraph; provided, however, that no such lease shall
    32  be effective if, on such commencement date, the manufactured home  owner
    33  is  in  default of more than one month's rent. In the event the manufac-
    34  tured home owner shall have failed to execute and return said  lease  to
    35  the manufactured home park owner or operator within thirty days after it
    36  is  submitted to the manufactured home owner as required by subparagraph
    37  (i) of this paragraph the manufactured home owner  shall  be  deemed  to
    38  have declined to enter said lease.
    39    3.  No  lease  provision  shall be inconsistent with any rule or regu-
    40  lation in effect at the commencement of the lease.
    41    4. If a manufactured home park owner or  operator  fails  to  offer  a
    42  tenant  a  lease  as provided in this subdivision, the tenant shall have
    43  all the rights of a leaseholder and may not be evicted  for  other  than
    44  the  reasons  specified  in  paragraph  two, three, four, five or six of
    45  subdivision (b) of this section.
    46    5. All rent increases, including all fees, rents, charges, assessments
    47  and utilities, shall be subject and  pursuant  to  section  two  hundred
    48  thirty-three-b of this article.
    49    §  5.  Paragraphs  2 and 3 of subdivision g of section 233 of the real
    50  property law, as amended by chapter 566 of the laws of 1996, are amended
    51  to read as follows:
    52    2. A manufactured home park owner or operator  shall  be  required  to
    53  fully  disclose  in  writing  all  fees, charges, assessments, including
    54  rental fees, rules and regulations prior to [a manufactured home  tenant
    55  assuming  occupancy] entering into a rental agreement with a prospective
    56  tenant in the manufactured home park.

        S. 6458                            68                            A. 8281

     1    3. No fees, charges, assessments or rental fees may  be  increased  by
     2  manufactured  home park owner or operator without specifying the date of
     3  implementation of said fees, charges, assessments or rental  fees  which
     4  date shall be no less than ninety days after written notice to all manu-
     5  factured home tenants. Failure on the part of the manufactured home park
     6  owner  or  operator  to  fully disclose all fees, charges or assessments
     7  shall prevent the manufactured home park owner or operator from collect-
     8  ing said fees, charges or assessments, and refusal by  the  manufactured
     9  home  tenant  to  pay  any  undisclosed charges shall not be used by the
    10  manufactured home park owner or operator as a cause for eviction in  any
    11  court  of  law.  Rent, utilities and charges for facilities and services
    12  available to the tenant may not be increased unless  a  lease  has  been
    13  offered to the tenant as required by subdivision e of this section.
    14    § 6. Subdivision m of section 233 of the real property law, as amended
    15  by chapter 566 of the laws of 1996, is amended to read as follows:
    16    m.  Warranty  of habitability, maintenance, disruption of services. In
    17  every written or oral lease or rental agreement entered into by a  manu-
    18  factured home tenant, the manufactured home park owner or operator shall
    19  be  deemed to covenant and warrant that the premises so leased or rented
    20  and the manufactured home if rented, including rental through a rent-to-
    21  own contract, and all areas used in connection therewith in common  with
    22  other  manufactured home tenants or residents including all roads within
    23  the manufactured home park are fit for human habitation and for the uses
    24  reasonably intended by the parties and that the occupants of such  prem-
    25  ises and such manufactured homes if rented shall not be subjected to any
    26  conditions  which  would be dangerous, hazardous or detrimental to their
    27  life, health or safety.  When any such condition has been caused by  the
    28  misconduct  of  the  manufactured home tenant or lessee or persons under
    29  his direction or control, it shall  not  constitute  a  breach  of  such
    30  covenants and warranties. The rights and obligations of the manufactured
    31  home  park  owner  or operator and the manufactured home tenant shall be
    32  governed by the provisions of this subdivision and subdivisions two  and
    33  three of section two hundred thirty-five-b of this article.
    34    § 7. Subdivision o of section 233 of the real property law, as amended
    35  by chapter 566 of the laws of 1996, is amended to read as follows:
    36    o.  Whenever  a  lease  shall  provide  that  in any action or summary
    37  proceeding the manufactured home park  owner  or  operator  may  recover
    38  attorney's  fees  and/or expenses [incurred as the result of the failure
    39  of the tenant to perform any covenant or  agreement  contained  in  such
    40  lease, or that amounts paid by the manufactured home park owner or oper-
    41  ator therefor shall be paid by the tenant as additional rent] awarded by
    42  a court, there shall be implied in such lease a covenant by the manufac-
    43  tured  home  park owner or operator, to pay to the tenant the reasonable
    44  attorney's fees and/or expenses incurred  by  the  tenant  to  the  same
    45  extent as is provided in section two hundred thirty-four of this article
    46  which  section  shall  apply  in  its entirety. A manufactured home park
    47  owner or operator may not demand that  a  tenant  pays  attorneys'  fees
    48  unless such fees have been awarded pursuant to a court order.
    49    § 8. Subdivision r of section 233 of the real property law, as amended
    50  by chapter 566 of the laws of 1996, is amended to read as follows:
    51    r.  Limitation on late charges. A late charge on any rental payment by
    52  a manufactured home owner which has become due and remains unpaid  shall
    53  not  exceed  and shall be enforced to the extent of [five] three percent
    54  of such delinquent payment; provided, however, that no charge  shall  be
    55  imposed  on  any  rental  payment  by a manufactured home owner received
    56  within ten days after the  due  date.  In  the  absence  of  a  specific

        S. 6458                            69                            A. 8281

     1  provision  in  the lease or the manufactured home park's rules and regu-
     2  lations, no late charge  on  any  delinquent  rental  payment  shall  be
     3  assessed  or collected. Late charges may not be compounded and shall not
     4  be considered additional rent.
     5    §  9.  Section 233 of the real property law is amended by adding a new
     6  subdivision y to read as follows:
     7    y. 1. No manufactured home park  owner  or  operator  shall  offer  or
     8  execute  a  rent-to-own  contract  unless the manufactured park owner or
     9  operator possesses documentation of ownership of the manufactured  home,
    10  including  a certificate of title to the home, if the home is a manufac-
    11  tured home subject to being titled pursuant to article forty-six of  the
    12  vehicle and traffic law, or for mobile homes not subject to being titled
    13  pursuant to such law, such other documentation, which may include a bill
    14  of sale, or deed, sufficient to establish ownership.
    15    2.  Every  rent-to-own  contract shall be in writing and clearly state
    16  all terms, including but not limited to: a description of the home to be
    17  leased, including the name of the manufacturer, the  serial  number  and
    18  the  year of manufacture; the site number upon which the home is located
    19  in the manufactured home park; an itemized statement of any payments  to
    20  be made during the term of the contract, including the initial lot rent,
    21  the  rental  amount  for  the  home,  and  the amount of the rent-to-own
    22  payments; the term of the agreement; the number of  payments,  itemized,
    23  required  to be made over the term of the agreement; the annual percent-
    24  age rate of the amount financed, if applicable; and the  amount  of  any
    25  additional fees to be paid during the term. A rent-to-own contract shall
    26  not  require  a  manufactured home tenant to pay any additional fees for
    27  transfer of ownership at the end of  the  lease  period.  A  rent-to-own
    28  contract  shall provide that where the rent-to-own tenant pays all rent-
    29  to-own payments and other fees established in the  contract  during  the
    30  lease term, title transferred at the end of the lease term shall be free
    31  of superior interests, liens or encumbrances.
    32    3.  Valuations used to determine the fair market value of the manufac-
    33  tured home at the time the rent-to-own contract is entered  into,  shall
    34  be  based  on the information provided by an independent system, entity,
    35  publication or publications that provide valuation information for manu-
    36  factured homes adjusted, as appropriate, by reasonable and  identifiable
    37  regional  market data, such as location, park-specific amenities, trends
    38  and comparable sales.
    39    4. Every rent-to-own contract shall clearly state  that  the  manufac-
    40  tured  home tenant is occupying a rented home, until ownership is trans-
    41  ferred, and that the manufactured home park owner and operator shall  be
    42  responsible  for compliance with the warranty of habitability, including
    43  but not limited to all major repairs and capital improvements.
    44    5. With the execution of every rent-to-own contract, the  manufactured
    45  home  park  owner or operator shall offer the manufactured home tenant a
    46  lease for the site on which the home is located as provided in  subdivi-
    47  sion  f of this section, and, if the term of the rent-to-own contract is
    48  longer than the term of the initial  site  lease,  shall  offer  renewal
    49  leases on the same terms as provided to manufactured home tenants within
    50  the  park  pursuant to subdivision e of this section, provided that such
    51  renewal lease may not include a rent increase greater than that  imposed
    52  on  similarly  situated  manufactured  home  tenants that own their home
    53  within the park.
    54    6. The manufactured home park owner or  operator  shall  provide  each
    55  manufactured  home  tenant  who  is a party to a rent-to-own contract an
    56  itemized accounting listing all payments made pursuant to  the  rent-to-

        S. 6458                            70                            A. 8281

     1  own  contract.  Such accounting shall be provided no less than once each
     2  year, beginning one year from the execution of the rent-to-own contract.
     3  Upon request by a manufactured home tenant, the manufactured  home  park
     4  owner  or  operator  shall provide such an accounting within ten days of
     5  such request.
     6    7. Any successor to ownership of the manufactured home park  shall  be
     7  bound  by  the  terms  of  a rent-to-own contract entered into after the
     8  effective date of this subdivision.
     9    8. If a manufactured home tenant's tenancy is terminated by the  manu-
    10  factured  home  park  owner or operator during the term of a rent-to-own
    11  contract, all rent-to-own payments made during the term of the  contract
    12  shall  be  refunded  to  the manufactured home tenant; if a manufactured
    13  home park owner or  operator  fails  to  refund  such  payments,  in  an
    14  eviction  proceeding,  the  court may award the manufactured home renter
    15  damages in the amount of the rent-to-own payments which  have  not  been
    16  refunded.
    17    9.  It  is  a  violation  of this section for a manufactured home park
    18  owner or operator to make any material misrepresentation, either written
    19  or oral, regarding any of the terms of a  rent-to-own  contract,  or  to
    20  obtain, or attempt to obtain, a waiver from any manufactured home renter
    21  of any protection or right provided under this subdivision.
    22    10.  (i)  If  a  manufactured home park owner or operator violates the
    23  provisions of this subdivision or wrongfully evicts a manufactured  home
    24  tenant  who  is  a  party  to  a rent-to-own contract, a court may award
    25  damages including treble the economic damages suffered by  the  manufac-
    26  tured home tenant, which may include all rent-to-own payments. The court
    27  may  also  provide for reasonable attorney fees and costs of litigation,
    28  and other equitable relief.
    29    (ii) Failure of the manufactured home park owner or operator to comply
    30  with this section shall give the manufactured home renter  the  uncondi-
    31  tional  right  to  cancel the rent-to-own contract and receive immediate
    32  refund of all payments and deposits made on account  of  or  in  contem-
    33  plation of the lease with the rent-to-own contract.
    34    11.  The provisions of this section apply to rent-to-own contracts and
    35  tenants with rent-to-own contracts.
    36    § 10. Paragraphs (a) and (c) of subdivision 2 of section 233-a of  the
    37  real  property  law,  as  added  by chapter 561 of the laws of 2008, are
    38  amended to read as follows:
    39    (a) If a manufactured home park owner receives a bona  fide  offer  to
    40  purchase a manufactured home park that such manufactured home park owner
    41  intends  to  accept,  or  respond with a counteroffer, such manufactured
    42  home park owner shall require the prospective purchaser to  provide,  in
    43  writing,  the  certification  required by paragraph (b) of this subdivi-
    44  sion, and shall not accept any offer to purchase,  nor  respond  with  a
    45  counteroffer  until  such manufactured home park owner has received such
    46  certification and met the requirements of this section.
    47    (c) If a manufactured home park owner takes any action  to  market  or
    48  offer  the  park  for  sale, or receives a bona fide offer to purchase a
    49  manufactured home park that such manufactured home park owner intends to
    50  accept or respond to with a counteroffer, [such counteroffer] a manufac-
    51  tured home park owner shall include a notice stating that  such  accept-
    52  ance  or counteroffer shall be subject to the right of the homeowners of
    53  the manufactured home park to purchase the manufactured home park pursu-
    54  ant to this subdivision. Notwithstanding any provision of law or  agree-
    55  ment  to the contrary, every [acceptance of a counteroffer] agreement to
    56  purchase a manufactured home park by a prospective purchaser of a  manu-

        S. 6458                            71                            A. 8281

     1  factured  home  park shall be [deemed to be] subject to the right of the
     2  homeowners of the manufactured home park to  purchase  the  manufactured
     3  home park pursuant to this subdivision if the purchaser certifies pursu-
     4  ant  to  paragraph  (b)  of  this  subdivision that he or she intends to
     5  change the use of the land.
     6    § 11. The first subdivision 3 of section 233-a of  the  real  property
     7  law,  as added by chapter 561 of the laws of 2008, is amended to read as
     8  follows:
     9    3. (a) If a manufactured home park owner receives a bona fide offer to
    10  purchase a manufactured home park that such manufactured home park owner
    11  intends to accept or respond to with a counteroffer, and  the  purchaser
    12  has  certified  pursuant  to  paragraph  (b)  of subdivision two of this
    13  section that he intends to change the use of the land, such manufactured
    14  home park owner shall notify:
    15    (i) the officers of the manufactured  homeowners'  association  within
    16  such park of [the offer to purchase and] all the terms thereof; provided
    17  that the park owner has been notified of the establishment of a manufac-
    18  tured  homeowners'  association  and  been  provided  with the names and
    19  addresses of the officers of such association; or
    20    (ii) if no homeowners' association exists, all manufactured homeowners
    21  in the manufactured home park; and
    22    (iii) the commissioner of housing and community renewal.
    23    (b) The manufactured home park owner's notification shall state:
    24    (i) the price [and];
    25    (ii) the material terms and conditions of sale [or, in the case  where
    26  such  manufactured  home  park owner intends to make a counteroffer, the
    27  price and material terms and conditions] upon  which  such  manufactured
    28  home park owner would sell the park;
    29    (iii)  that  the  manufactured homeowners have the right to organize a
    30  manufactured homeowners' association or a manufactured homeowners' coop-
    31  erative for the park;
    32    (iv) that purchase financing may be available  through  the  New  York
    33  state homes and community renewal; and
    34    (v)  that  the manufactured homeowners' association, a cooperative, or
    35  manufactured home owners or tenants have one hundred forty days to exer-
    36  cise their right to purchase the park in accordance with this section.
    37    (c) (i) If a manufactured homeowners' association exists at  the  time
    38  of the offer, the association shall have the right to purchase the park;
    39  provided  that  the association shall have delivered to the manufactured
    40  home park owner an executed offer to purchase which meets the  identical
    41  price,  terms,  and  conditions of the offer or counteroffer provided in
    42  the notice of the manufactured home park owner within one hundred [twen-
    43  ty] forty days of receipt of notice  from  the  manufactured  home  park
    44  owner,  unless  otherwise agreed to in writing. During this time period,
    45  the park owner shall not accept a final unconditional offer to  purchase
    46  the park.
    47    (ii) If an offer to purchase by the association is not delivered with-
    48  in  such  one  hundred  [twenty] forty day period, then, unless the park
    49  owner thereafter elects to offer to sell the park at a price lower  than
    50  the  price  specified in the notice to the homeowners' association or at
    51  terms substantially different from those presented to  the  association,
    52  the park owner has no further obligations under this section.
    53    (iii)  If  the  park  owner, after such one hundred [twenty] forty day
    54  period, elects to offer to sell the park at a price lower than the price
    55  specified in the notice given or at terms substantially  different  from
    56  those  previously  presented  to  the  association, then the association

        S. 6458                            72                            A. 8281

     1  shall be entitled to notice thereof and shall have an  additional  [ten]
     2  thirty  days  after receipt of notice of the revised terms to deliver to
     3  the park owner an executed offer to purchase  which  meets  the  revised
     4  price, terms, and conditions as presented by the park owner.
     5    (d) (i) If there is no existing homeowners' association at the time of
     6  the  offer,  the  homeowners  shall have the right to purchase the park;
     7  provided the following conditions are met:
     8    (A) The manufactured homeowners shall have the right to form  a  manu-
     9  factured homeowners' association, whether incorporated or not.
    10    (B)  Such  homeowners'  association  shall  include at least fifty-one
    11  percent of all manufactured homeowners, who  shall  have  given  written
    12  consent   to   forming   a  manufactured  homeowners'  association.  The
    13  provisions of section two hundred twenty-three-b of this  article  shall
    14  apply to the formation of a manufactured homeowners' association.
    15    (C)  The  association,  acting  through its officers, shall have given
    16  notice to the park owner of its formation, the names  and  addresses  of
    17  its  officers,  and  delivered an executed offer to purchase the park at
    18  the identical price, terms, and conditions of the offer presented in the
    19  notification given by the park owner within one hundred  [twenty]  forty
    20  days  of  receipt of notice from the park owner, unless otherwise agreed
    21  to in writing. During this time period, the park owner shall not  accept
    22  a final unconditional offer to purchase the park.
    23    (ii) If the homeowners fail to form a manufactured homeowners' associ-
    24  ation,  or  if  upon the formation of a manufactured homeowners' associ-
    25  ation, the association does not deliver an executed offer to purchase as
    26  set forth in paragraph (a) of this subdivision within  the  one  hundred
    27  [twenty]  forty  day period, then, unless the park owner elects to offer
    28  the park at a price lower than the price specified in the notice  previ-
    29  ously  presented  to the homeowners, the park owner has no further obli-
    30  gation under this section; and
    31    (iii) If the park owner thereafter elects to sell the park at a  price
    32  lower  than  the  price  specified in the notice to the homeowners or at
    33  terms substantially different from those previously presented, then  the
    34  association  shall have an additional [ten] thirty days after receipt of
    35  notice of the revised terms to deliver to the  park  owner  an  executed
    36  offer  to  purchase which meets the revised price, terms, and conditions
    37  as presented by the park owner.
    38    § 12. The real property law is amended by adding a new  section  233-b
    39  to read as follows:
    40    § 233-b. Manufactured home parks; rent increases. 1. The provisions of
    41  this section shall apply to all manufactured homes located in a manufac-
    42  tured  home  park as defined in section two hundred thirty-three of this
    43  article, however manufactured homes located in manufactured  home  parks
    44  that are subject to a regulatory agreement with a governmental entity to
    45  preserve  affordable housing or that otherwise limits rent increases are
    46  exempt from the provisions of this section.
    47    2. Increases in rent shall not exceed a three percent  increase  above
    48  the  rent since the current rent became effective. In this section, rent
    49  shall mean all costs, including all rent,  fees,  charges,  assessments,
    50  and utilities. Notwithstanding the above, a manufactured home park owner
    51  is  permitted  to increase the rent in excess of three percent above the
    52  rent since the current rent became effective, due to:
    53    (a)  Increases  in  the  manufactured  home  park  owner's   operating
    54  expenses.
    55    (b)  Increases in the manufactured home park owner's property taxes on
    56  such park.

        S. 6458                            73                            A. 8281

     1    (c) Increases in costs which are directly related to capital  improve-
     2  ments in the park.
     3    3.  An  increase above three percent may be challenged by an aggrieved
     4  manufactured homeowner as unjustified. Multiple  aggrieved  manufactured
     5  homeowners  may join in the same action where there is a common question
     6  of law and fact.
     7    4. Within ninety days of the proposed increase, an aggrieved  manufac-
     8  tured  homeowner  may challenge such increase by filing an action in the
     9  court of appropriate subject matter jurisdiction where the real property
    10  is located seeking a declaratory judgment  that  the  rent  increase  is
    11  unjustifiable.
    12    5. In any proceeding under this section there shall be an irrebuttable
    13  presumption  that a rent increase is justifiable when the amount of such
    14  increase does not exceed the tenant's pro-rata share in operating  costs
    15  and  property taxes for the manufactured home park in which the manufac-
    16  tured home owner resides.
    17    6. (a) In determining whether a  rent  increase  is  permissible,  the
    18  court  shall  consider  the provisions of paragraphs (a), (b) and (c) of
    19  subdivision two of  this  section.    Notwithstanding  the  above,  rent
    20  increases  shall not exceed six percent above the rent since the current
    21  rent became effective, except upon the approval of a temporary  hardship
    22  application  by  the  court. In addition to the provisions of this para-
    23  graph and paragraphs (b) and (c) of this  subdivision  the  court  shall
    24  take  into  account  the  following  factors when determining whether to
    25  grant a temporary hardship application:
    26    (i) The amount of increase being sought by the park owners;
    27    (ii) The ability of the manufactured home owner to pay  such  increase
    28  including whether the increase would have an unreasonable adverse impact
    29  on the manufactured home owner;
    30    (iii)  The  amount  of time and notice the manufactured home owner may
    31  need in order to pay a temporary rent increase;
    32    (iv) The duration the  park  owners  intend  for  the  temporary  rent
    33  increase to last;
    34    (v)  The cause of the hardship the rent increase is being requested to
    35  alleviate, including whether the hardship was due  to  owner  negligence
    36  and malfeasance;
    37    (vi)  The  ability of the park owners to utilize other means besides a
    38  rent increase to alleviate said hardship;
    39    (vii) The likelihood that the property the manufactured home  park  is
    40  located  on  will go into foreclosure if a temporary rent increase above
    41  six percent is not granted;
    42    (viii) Any other factor that will jeopardize the ability of  the  park
    43  to legally operate.
    44    (b)  A  court  order  approving a temporary hardship application shall
    45  state for each manufactured home owner:
    46    (i) The amount of the rent increase;
    47    (ii) The date the rent increase is to take effect;
    48    (iii) The date the increase is to end;
    49    (iv) The amount the rent will return to; and
    50    (v) The court's findings as to the factors necessitating  a  temporary
    51  increase.
    52    (c) Upon a finding by the court that the manufactured home park should
    53  be  granted  a hardship exemption, the amount of any rent increase shall
    54  be the minimum amount to alleviate the hardship.  An  order  granting  a
    55  temporary  rent  increase shall not exceed six months. The order must be
    56  served on the manufactured home  owners  and  all  known  legal  tenants

        S. 6458                            74                            A. 8281

     1  pursuant to the rules of civil procedure within thirty days of the court
     2  order, the cost of which shall be on the manufactured home park owner.
     3    7.  The court may condition its approval of any rent increase upon the
     4  redress of conditions in the manufactured home park which  threaten  the
     5  health and safety of the manufactured home tenant.
     6    8.  While  a  challenge to a rent increase pursuant to this section is
     7  pending, manufactured home park tenants shall pay the amount of the rent
     8  increase to the manufactured home park owner who shall hold such amounts
     9  in escrow pending a mediated agreement between the parties  or  a  final
    10  decision  from  the courts, provided, however, that no manufactured home
    11  park tenant shall be evicted for non-payment of the rent increase  prior
    12  to  the final disposition of the matter by the court in the county where
    13  the manufactured home park is located. Failure by the manufactured  home
    14  park  owner  to  place  such challenged rent increase in escrow shall be
    15  punishable by a civil penalty of not more than five hundred dollars.  If
    16  the  petitioners appeal, the manufactured home park owner may remove the
    17  rent increase funds from escrow, mingle such funds with any other funds,
    18  and commence a nonpayment proceeding in the court of appropriate  juris-
    19  diction  against  a tenant who has not paid the increase of rent. If the
    20  court enters a final judgment declaring the rent increases or  any  part
    21  thereof  unjustifiable  and  impermissible,  the  manufactured home park
    22  owner shall refund the amount of  the  impermissible  increase  to  each
    23  tenant household.
    24    §  13. Severability.  If any provision of this act, or any application
    25  of any provision of this act, is held to  be  invalid,  that  shall  not
    26  affect the validity or effectiveness of any other provision of this act,
    27  or  of  any application of any provision of this act, which can be given
    28  effect without that provision or  application;  and  to  that  end,  the
    29  provisions and applications of this act are severable.
    30    §  14.  This act shall take effect on the thirtieth day after it shall
    31  have become a law.
    32    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    33  sion, section or part of this act shall be  adjudged  by  any  court  of
    34  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    35  impair, or invalidate the remainder thereof, but shall  be  confined  in
    36  its  operation  to the clause, sentence, paragraph, subdivision, section
    37  or part thereof directly involved in the controversy in which such judg-
    38  ment shall have been rendered. It is hereby declared to be the intent of
    39  the legislature that this act would  have  been  enacted  even  if  such
    40  invalid provisions had not been included herein.
    41    §  3.  This  act shall take effect immediately provided, however, that
    42  the applicable effective date of Parts A through O of this act shall  be
    43  as specifically set forth in the last section of such Parts.
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