Bill Text: NY S05780 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to the regulation of interim multiple dwellings.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-01 - PRINT NUMBER 5780A [S05780 Detail]
Download: New_York-2011-S05780-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5780
2011-2012 Regular Sessions
I N S E N A T E
June 16, 2011
___________
Introduced by Sen. DILAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the multiple dwelling law, in relation to interim multi-
ple dwellings
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 1 of section 281 of the multiple dwelling law,
2 as added by chapter 349 of the laws of 1982, is amended to read as
3 follows:
4 1. Except as provided in subdivision two of this section, the term
5 "interim multiple dwelling" means any building or structure or portion
6 thereof located in a city of more than one million persons which (i) at
7 any time was occupied for manufacturing, commercial, or warehouse
8 purposes; and (ii) lacks a certificate of compliance or occupancy pursu-
9 ant to section three hundred one of this chapter, NOTWITHSTANDING ANY
10 OTHER PORTION OF ANY SUCH BUILDING HAVING A CERTIFICATE OF COMPLIANCE OR
11 OCCUPANCY PURSUANT TO SECTION THREE HUNDRED ONE OF THIS CHAPTER; and
12 (iii) on December first, nineteen hundred eighty-one was occupied for
13 residential purposes since April first, nineteen hundred eighty as the
14 residence or home of any three or more families living independently of
15 one another.
16 S 2. Subdivision 3 of section 281 of the multiple dwelling law, as
17 added by chapter 349 of the laws of 1982, is amended to read as follows:
18 3. In addition to the residents of an interim multiple dwelling, resi-
19 dential occupants in units first occupied after April first, nineteen
20 hundred eighty and prior to April first, nineteen hundred eighty-one
21 shall be qualified for protection pursuant to this article, provided
22 that the building or any portion thereof otherwise qualifies as an
23 interim multiple dwelling, and the tenants are eligible under the local
24 zoning resolution for such occupancy. A reduction in the number of occu-
25 pied residential units in a building after December first, nineteen
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11449-03-1
S. 5780 2
1 hundred eighty-one shall not eliminate the protections of this article
2 for any remaining residential occupants qualified for such protections.
3 Non-residential space in a building as of [the effective date of the act
4 which added this article] JUNE TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-TWO
5 shall be offered for residential use only after the obtaining of a resi-
6 dential certificate of occupancy for such space, and such space shall be
7 exempt from this article, even if a portion of such building may be an
8 interim multiple dwelling.
9 S 3. Subdivision 5 of section 281 of the multiple dwelling law, as
10 amended by chapter 147 of the laws of 2010, is amended to read as
11 follows:
12 5. Notwithstanding the provisions of paragraphs (i), (iii) and (iv) of
13 subdivision two of this section, but subject to paragraphs (i) and (ii)
14 of subdivision one of this section and paragraph (ii) of subdivision two
15 of this section, the term "interim multiple dwelling" shall include
16 buildings, structures or portions thereof that are located in a city of
17 more than one million persons which were occupied for residential
18 purposes as the residence or home of any three or more families living
19 independently from one another for a period of twelve consecutive months
20 during the period commencing January first, two thousand eight, and
21 ending December thirty-first, two thousand nine, provided that the unit:
22 is not located in a basement or cellar and has at least one entrance
23 that does not require passage through another residential unit to obtain
24 access to the unit, has at least one window opening onto a street or a
25 lawful yard or court as defined in the zoning resolution for such muni-
26 cipality, and is at least five hundred fifty square feet in area. The
27 term "interim multiple dwelling" as used in this subdivision shall not
28 include (i) any building in an industrial business zone established
29 pursuant to chapter six-D of title twenty-two of the administrative code
30 of the city of New York except that a building in the
31 Williamsburg/Greenpoint or North Brooklyn industrial business zones and
32 a building located in that portion of the Long Island city industrial
33 business zone that has frontage on either side of forty-seventh [street]
34 AVENUE or is located north of forty-seventh [street] AVENUE and south of
35 Skillman avenue or in that portion of the Long Island city industrial
36 business zone that is located north of forty-fourth drive, south of
37 Queens plaza north, and west of twenty-third street may be included in
38 the term "interim multiple dwelling," or (ii) units in any building
39 that, at the time this subdivision shall take effect AND CONTINUING AT
40 THE TIME OF THE SUBMISSION OF AN APPLICATION FOR COVERAGE BY ANY PARTY,
41 also contains a use actively and currently pursued, which use is set
42 forth in use groups fifteen through eighteen, as described in the zoning
43 resolution of such municipality in effect on June twenty-first, two
44 thousand ten, and which the loft board has determined in rules and regu-
45 lation is inherently incompatible with residential use in the same
46 building, provided that if a building does not contain such active uses
47 at the time this subdivision takes effect, no subsequent use by the
48 owner of the building shall eliminate the protections of this section
49 for any residential occupants in the building already qualified for such
50 protections. The term "interim multiple dwelling," as used in this
51 subdivision shall also include buildings, structures or portions thereof
52 that are located north of West 24th Street and south of West 27th Street
53 and west of tenth avenue and east of eleventh avenue in a city of more
54 than one million persons which were occupied for residential purposes as
55 the residence or home of any two or more families living independently
56 from one another for a period of twelve consecutive months during the
S. 5780 3
1 period commencing January first, two thousand eight, and ending December
2 thirty-first, two thousand nine and subject to all the conditions and
3 limitations of this subdivision other than the number of units in the
4 building. A reduction in the number of occupied residential units in a
5 building after meeting the aforementioned twelve consecutive month
6 requirement shall not eliminate the protections of this section for any
7 remaining residential occupants qualified for such protections. Non-re-
8 sidential space in a building as of [the effective date of this subdivi-
9 sion] JUNE TWENTY-FIRST, TWO THOUSAND TEN shall be offered for residen-
10 tial use only after the obtaining of a residential certificate of
11 occupancy for such space and such space shall be exempt from this arti-
12 cle, even if a portion of such building may be an interim multiple
13 dwelling.
14 S 4. Paragraph (vi) of subdivision 1 of section 284 of the multiple
15 dwelling law, as amended by chapter 135 of the laws of 2010, is amended
16 to read as follows:
17 (vi) Notwithstanding the provisions of paragraphs (i) through (v) of
18 this subdivision the owner of an interim multiple dwelling made subject
19 to this article by subdivision five of section two hundred eighty-one of
20 this article (A) shall file an alteration application within nine months
21 from the [effective date of the chapter of the laws of two thousand ten
22 which amended this subparagraph] PROMULGATION OF THE RULES AND REGU-
23 LATIONS PURSUANT TO SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-ONE
24 OF THIS ARTICLE, and (B) shall take all reasonable and necessary action
25 to obtain an approved alteration permit within twelve months from [such
26 effective date] THE PROMULGATION OF THE RULES AND REGULATIONS PURSUANT
27 TO SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-ONE OF THIS ARTICLE,
28 and (C) shall achieve compliance with the standards of safety and fire
29 protection set forth in article seven-B of this chapter for the residen-
30 tial portions of the building within eighteen months from obtaining such
31 alteration permit [or eighteen months from such effective date, whichev-
32 er is later], and (D) shall take all reasonable and necessary action to
33 obtain a certificate of occupancy as a class A multiple dwelling for the
34 residential portions of the building or structure within thirty-six
35 months from [such effective date] THE PROMULGATION OF THE RULES AND
36 REGULATIONS PURSUANT TO SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-
37 ONE OF THIS ARTICLE. The loft board may, upon good cause shown, and upon
38 proof of compliance with the standards of safety and fire protection set
39 forth in article seven-B of this chapter, twice extend the time of
40 compliance with the requirement to obtain a residential certificate of
41 occupancy for periods not to exceed twelve months each.
42 S 5. Paragraph (ix) of subdivision 1 of section 284 of the multiple
43 dwelling law, as amended by chapter 135 of the laws of 2010, is amended
44 to read as follows:
45 (ix) In addition to the penalties provided in article eight of this
46 chapter, if there is a finding by the loft board that an owner has
47 failed to satisfy any requirement specified in paragraph (i), (ii),
48 (iii), (iv), (v), or (vi) of this subdivision, a court may order specif-
49 ic performance to enforce the provisions of this article upon the appli-
50 cation of [three occupants of separate residential units] ANY OCCUPANT,
51 qualified for the protection of this article WHO RESIDES IN THE AFFECTED
52 INTERIM MULTIPLE DWELLING, or upon the application of the municipality.
53 S 6. Subdivision 2 of section 285 of the multiple dwelling law, as
54 amended by chapter 135 of the laws of 2010, is amended to read as
55 follows:
S. 5780 4
1 2. Notwithstanding any other provision of this article, an owner may
2 apply to the loft board for exemption of a building or portion thereof
3 from this article on the basis that compliance with this article in
4 obtaining a legal residential certificate of occupancy would cause an
5 unjustifiable hardship either because: (i) it would cause an unreason-
6 ably adverse impact on a non-residential conforming use tenant within
7 the building or (ii) the cost of compliance renders legal residential
8 conversion infeasible. Residential and other tenants shall be given not
9 less than sixty days notice in advance of the hearing date for such
10 application. If the loft board approves such application, the building
11 or portion thereof shall be exempt from this article, and may be
12 converted to non-residential conforming uses, provided, however, that
13 the owner shall, as a condition of approval of such application, agree
14 to file an irrevocable recorded covenant in form satisfactory to the
15 loft board enforceable for fifteen years by the municipality, that the
16 building will not be re-converted to residential uses during such time.
17 The standard for granting such hardship application for a building or
18 portion thereof shall be as follows: (a) the loft board shall only grant
19 the minimum relief necessary to relieve any alleged hardship with the
20 understanding if compliance is reasonably possible it should be achieved
21 even if it requires alteration of units, relocation of tenants to vacant
22 space within the building, re-design of space or application for a non-
23 use-related variance, special permit, minor modification or administra-
24 tive certification; (b) self-created hardship shall not be allowed; (c)
25 the test for cost infeasibility shall be that of a reasonable return on
26 the owner's investment not maximum return on investment; (d) the test
27 for unreasonably adverse impact on a non-residential conforming use
28 tenant shall be whether residential conversion would necessitate
29 displacement. Such hardship applications shall be submitted to the loft
30 board within nine months of the establishment of the loft board (or, in
31 the case of interim multiple dwellings referred to in subdivision four
32 of section two hundred eighty-one of this article, within nine months of
33 [the effective date of such subdivision four] JUNE TWENTY-FIRST, NINE-
34 TEEN HUNDRED EIGHTY-TWO or in the case of interim multiple dwellings
35 made subject to this article by subdivision five of section two hundred
36 eighty-one of this article, within nine months of [the effective date of
37 such subdivision five] JUNE TWENTY-FIRST, TWO THOUSAND TEN), but shall
38 not be considered, absent a waiver by the loft board, unless the owner
39 has also filed an alteration application. In determination of any such
40 hardship application, the loft board may demand such information as it
41 deems necessary. In approving any such hardship application, the loft
42 board may fix reasonable terms and conditions for the vacating of resi-
43 dential occupancy.
44 S 7. Section 286 of the multiple dwelling law, as added by chapter 349
45 of the laws of 1982, subdivision 2 as amended by chapter 414 of the laws
46 of 1999, subparagraphs (A) and (B) of paragraph (ii) of subdivision 2,
47 paragraph (iii) of subdivision 2, and subdivision 3 as amended by chap-
48 ter 135 of the laws of 2010, is amended to read as follows:
49 S 286. Tenant protection. 1. It shall not be a ground for an action or
50 proceeding to recover possession of a unit occupied by a residential
51 occupant qualified for the protection of this article that the occupancy
52 of the unit is illegal or in violation of provisions of the tenant's
53 lease or rental agreement because a residential certificate of occupancy
54 has not been issued for the building, or because residential occupancy
55 is not permitted by the lease or rental agreement.
S. 5780 5
1 2. (i) Prior to compliance with safety and fire protection standards
2 of article seven-B of this chapter, residential occupants qualified for
3 protection pursuant to this article shall be entitled to continued occu-
4 pancy, provided that the unit is their primary residence, and shall pay
5 the same rent, [including escalations,] specified in their lease or
6 rental agreement to the extent to which such lease or rental agreement
7 remains in effect or, in the absence of a lease or rental agreement, the
8 same rent most recently paid and accepted by the owner; if there is no
9 lease or other rental agreement in effect, rent adjustments prior to
10 article seven-B compliance shall be in conformity with guidelines to be
11 set by the loft board for such residential occupants within six months
12 from [the effective date of this article] JUNE TWENTY-FIRST, NINETEEN
13 HUNDRED EIGHTY-TWO, PROVIDED, HOWEVER, THAT SUCH RENT ADJUSTMENTS,
14 ALLOWED PURSUANT TO THIS PARAGRAPH, SHALL NOT APPLY TO UNITS MADE
15 SUBJECT TO THIS ARTICLE BY SUBDIVISION FIVE OF SECTION TWO HUNDRED
16 EIGHTY-ONE OF THIS ARTICLE.
17 (ii) In addition to any rent adjustment pursuant to paragraph (i) of
18 this subdivision, on or after June twenty-first, nineteen hundred nine-
19 ty-two, the rent for residential units in interim multiple dwellings
20 that are not yet in compliance with the requirements of subdivision one
21 of section two hundred eighty-four of this article shall be adjusted as
22 follows:
23 (A) Upon the owners' filing of an alteration application, as required
24 by paragraph (ii), (iii), (iv), (v), or (vi) of subdivision one of
25 section two hundred eighty-four of this article, an adjustment equal to
26 THE COST OF FILING AN ALTERATION APPLICATION DIVIDED BY EIGHTY-FOUR,
27 DIVIDED BY THE AMOUNT OF SQUARE FOOTAGE LOCATED WITHIN ALL OF THE INTER-
28 IM MULTIPLE DWELLING UNITS, AND THEN MULTIPLIED BY THE AMOUNT OF SQUARE
29 FOOTAGE LOCATED WITHIN SUCH INTERIM MULTIPLE DWELLING UNIT UP TO A MAXI-
30 MUM OF six percent of the rent in effect at the time the owner files the
31 alteration application. THE INCREASE PERMITTED PURSUANT TO THIS SUBPAR-
32 AGRAPH SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT
33 SHALL BE SEPARATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE
34 COMPOUNDED BY ANY OTHER ADJUSTMENT TO THE MAXIMUM RENT. COLLECTION OF
35 SURCHARGES PURSUANT TO THIS SUBPARAGRAPH SHALL CEASE WHEN THE OWNER HAS
36 RECOVERED THE COST OF FILING AN ALTERATION APPLICATION. THE OWNER SHALL
37 FILE WITH THE LOFT BOARD AN EXPLANATION OF HOW THE SURCHARGE WAS
38 COMPUTED, AND ALL DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH
39 SURCHARGE, INCLUDING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND
40 SIGNED CONTRACTS. SUCH INFORMATION SHALL ALSO BE MADE AVAILABLE TO ANY
41 LEGAL OCCUPANT RESIDING WITHIN THE AFFECTED INTERIM MULTIPLE DWELLING
42 UNIT.
43 (B) Upon obtaining an alteration permit, as required by paragraph
44 (ii), (iii), (iv), (v), or (vi) of subdivision one of section two
45 hundred eighty-four of this article, an adjustment equal to THE COST OF
46 OBTAINING AN ALTERATION PERMIT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE
47 AMOUNT OF SQUARE FOOTAGE LOCATED WITHIN ALL OF THE INTERIM MULTIPLE
48 DWELLING UNITS, AND THEN MULTIPLIED BY THE AMOUNT OF SQUARE FOOTAGE
49 LOCATED WITHIN SUCH INTERIM MULTIPLE DWELLING UNIT UP TO A MAXIMUM OF
50 eight percent of the rent in effect at the time the owner obtains the
51 alteration permit. THE INCREASE PERMITTED PURSUANT TO THIS SUBPARAGRAPH
52 SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL
53 BE SEPARATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED
54 BY ANY OTHER ADJUSTMENT TO THE MAXIMUM RENT. COLLECTION OF SURCHARGES
55 PURSUANT TO THIS SUBPARAGRAPH SHALL CEASE WHEN THE OWNER HAS RECOVERED
56 THE COST OF OBTAINING AN ALTERATION PERMIT. THE OWNER SHALL FILE WITH
S. 5780 6
1 THE LOFT BOARD AN EXPLANATION OF HOW THE SURCHARGE WAS COMPUTED, AND ALL
2 DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH SURCHARGE, INCLUD-
3 ING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS.
4 SUCH INFORMATION SHALL ALSO BE MADE AVAILABLE TO ANY LEGAL OCCUPANT
5 RESIDING WITHIN THE AFFECTED INTERIM MULTIPLE DWELLING UNIT.
6 (C) Upon achieving compliance with the standards of safety and fire
7 protection set forth in article seven-B of this chapter for the residen-
8 tial portions of the building, an adjustment equal to THE COST OF
9 ACHIEVING COMPLIANCE WITH THE STANDARDS OF SAFETY AND FIRE PROTECTION
10 DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE AMOUNT OF SQUARE FOOTAGE LOCATED
11 WITHIN ALL OF THE INTERIM MULTIPLE DWELLING UNITS, AND THEN MULTIPLIED
12 BY THE AMOUNT OF SQUARE FOOTAGE LOCATED WITHIN SUCH INTERIM MULTIPLE
13 DWELLING UNIT UP TO A MAXIMUM OF six percent of the rent in effect at
14 the time the owner achieves such compliance. THE INCREASE PERMITTED
15 PURSUANT TO THIS SUBPARAGRAPH SHALL BE COLLECTED AS A MONTHLY SURCHARGE
16 TO THE MAXIMUM RENT. IT SHALL BE SEPARATELY DESIGNATED AND BILLED AS
17 SUCH AND SHALL NOT BE COMPOUNDED BY ANY OTHER ADJUSTMENT TO THE MAXIMUM
18 RENT. COLLECTION OF SURCHARGES PURSUANT TO THIS SUBPARAGRAPH SHALL CEASE
19 WHEN THE OWNER HAS RECOVERED THE COST OF ACHIEVING COMPLIANCE WITH THE
20 STANDARDS OF SAFETY AND FIRE PROTECTION. THE OWNER SHALL FILE WITH THE
21 LOFT BOARD AN EXPLANATION OF HOW THE SURCHARGE WAS COMPUTED, AND ALL
22 DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH SURCHARGE, INCLUD-
23 ING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS.
24 SUCH INFORMATION SHALL ALSO BE MADE AVAILABLE TO ANY LEGAL OCCUPANT
25 RESIDING WITHIN THE AFFECTED INTERIM MULTIPLE DWELLING UNIT.
26 (D) Owners who filed an alteration application prior to [the effective
27 date of this subparagraph] JUNE TWENTY-FIRST, NINETEEN HUNDRED
28 NINETY-TWO shall be entitled to a prospective adjustment equal to six
29 percent of the rent on [the effective date of this subparagraph] JUNE
30 TWENTY-FIRST, NINETEEN HUNDRED NINETY-TWO.
31 (E) Owners who obtained an alteration permit prior to June twenty-
32 first, nineteen hundred ninety-two shall be entitled to a prospective
33 adjustment equal to fourteen percent of the rent on June twenty-first,
34 nineteen hundred ninety-two.
35 (F) Owners who achieved compliance with the standards of safety and
36 fire protection set forth in article seven-B of this chapter for the
37 residential portions of the building prior to June twenty-first, nine-
38 teen hundred ninety-two shall be entitled to a prospective adjustment
39 equal to twenty percent of the rent on June twenty-first, nineteen
40 hundred ninety-two.
41 (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
42 sion shall not apply to units which were rented at market value after
43 June twenty-first, nineteen hundred eighty-two and prior to [June twen-
44 ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
45 units made subject to this article by subdivision five of section two
46 hundred eighty-one of this article] DECEMBER THIRTY-FIRST, TWO THOUSAND
47 NINE.
48 (iv) Payment of any rent adjustments pursuant to paragraph (ii) of
49 this subdivision shall commence the month immediately following the
50 month in which the act entitling the owner to the adjustment occurred.
51 3. Upon or after compliance with the safety and fire protection stand-
52 ards of article seven-B of this chapter, an owner may apply to the loft
53 board for an adjustment of rent based upon the cost of such compliance.
54 Upon approval by the loft board of such compliance, the loft board shall
55 set the initial legal regulated rent, and each residential occupant
56 qualified for protection pursuant to this article shall be offered a
S. 5780 7
1 residential lease subject to the provisions regarding evictions and
2 regulation of rent set forth in the emergency tenant protection act of
3 nineteen seventy-four, except to the extent the provisions of this arti-
4 cle are inconsistent with such act.
5 4. The initial legal regulated rent established by the loft board
6 shall be equal to (i) the rent in effect, [including escalations,] as of
7 the date of application for adjustment ("base rent"), plus, (ii) the
8 maximum annual amount of any increase allocable to compliance as
9 provided herein; and (iii) the percentage increase then applicable to
10 one, two or three year leases, as elected by the tenant, as established
11 by the local rent guidelines board, and applied to the base rent,
12 provided, however, such percentage increases may be adjusted downward by
13 the loft board if prior increases based on loft board guidelines cover
14 part of the same time period to be covered by the rent guidelines board
15 adjustments.
16 5. An owner may apply to the loft board for rent adjustments once
17 based upon the cost of compliance with article seven-B of this chapter
18 and once based upon the obtaining of a residential certificate of occu-
19 pancy. If the initial legal regulated rent has been set based only upon
20 article seven-B compliance, a further adjustment may be obtained upon
21 the obtaining of a residential certificate of occupancy. Upon receipt of
22 such records as the loft board shall require, the loft board shall
23 determine the costs necessarily and reasonably incurred, including
24 financing, in obtaining compliance with this article pursuant to a sche-
25 dule of reasonable costs to be promulgated by it. The adjustment in
26 maximum rents for compliance with this article shall be determined
27 either (i) by dividing the amount of the cash cost of such improvements
28 exclusive of interest and service charges over a ten year period of
29 amortization, or (ii) by dividing the amount of the cash cost of such
30 improvements exclusive of interest and service charges over a fifteen
31 year period of amortization, plus the actual annual mortgage debt
32 service attributable to interest and service charges in each year of
33 indebtedness to an institutional lender, or other lender approved by the
34 loft board, incurred by the owner to pay the cash cost of the improve-
35 ments, provided that the maximum amount of interest charged includable
36 in rent shall reflect an annual amortization factor of one-fifteenth of
37 the outstanding principal balance. Rental adjustments to each residen-
38 tial unit shall be determined on a basis approved by the loft board. An
39 owner may elect that the loft board shall deem the total cost of compli-
40 ance with this article to be the amounts certified by the [local depart-
41 ment of housing preservation and development] APPLICABLE LOCAL AGENCY of
42 such municipality in any certificate of eligibility issued in connection
43 with an application for tax exemption or tax abatement to the extent
44 such certificate reflects categories of costs approved by the loft board
45 as reasonable and necessary for such compliance. Rental adjustments
46 attributable to the cost of compliance with this article shall not
47 become part of the base rent for purposes of calculating rents adjusted
48 pursuant to rent guidelines board increases. NO RENT ADJUSTMENT ALLOWED
49 PURSUANT TO THIS SUBDIVISION SHALL BE GIVEN FOR ANY RENT ADJUSTMENT TO
50 COVER COSTS ALLOWED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
51 6. Notwithstanding any provision of law to the contrary, a residential
52 tenant qualified for protection pursuant to this chapter may sell any
53 improvements to the unit made or purchased by him to an incoming tenant
54 provided, however, that the tenant shall first offer the improvements to
55 the owner for an amount equal to their fair market value. Upon purchase
56 of such improvements by the owner, any unit subject to rent regulation
S. 5780 8
1 solely by reason of this article and not receiving any benefits of real
2 estate tax exemption or tax abatement, shall be exempted from the
3 provisions of this article requiring rent regulation if such building
4 had fewer than six [residential] units USED FOR RESIDENTIAL PURPOSES as
5 of [the effective date of the act which added this article, or rented at
6 market value subject to subsequent rent regulation if such building had
7 six or more residential units at such time] DECEMBER THIRTY-FIRST, TWO
8 THOUSAND NINE. The loft board shall establish rules and regulations
9 regarding such sale of improvements which shall include provisions that
10 such right to sell improvements may be exercised only once for each unit
11 subject to this article, and that the opportunity for decontrol or
12 market rentals shall not be available to an owner found guilty by the
13 loft board of harassment of tenants.
14 7. The local rent guidelines board shall annually establish guidelines
15 for rent adjustments for the category of buildings covered by this arti-
16 cle in accordance with the standards established pursuant to the emer-
17 gency tenant protection act of nineteen seventy-four. The local rent
18 guidelines board shall consider the necessity of a separate category for
19 such buildings, and a separately determined guideline for rent adjust-
20 ments for those units in which heat is not required to be provided by
21 the owner, and may establish such separate category and guideline. The
22 loft board shall annually commission a study by an independent consult-
23 ant to assist the rent guidelines board in determining the economics of
24 loft housing.
25 8. Cooperative and condominium units occupied by owners or tenant-
26 shareholders shall not be subject to rent regulation pursuant to this
27 article.
28 9. No eviction plan for conversion to cooperative or condominium
29 ownership for a building which is, or a portion of which is an interim
30 multiple dwelling shall be submitted for filing to the department of law
31 pursuant to the general business law until a residential certificate of
32 occupancy is obtained as required by this article, and the residential
33 occupants qualified for protection pursuant to this article are offered
34 one, two or three year leases, as elected by such persons, in accordance
35 with the provisions for establishment of initial legal regulated rent
36 contained herein. Non-eviction plans for such buildings may be submitted
37 for filing only if the sponsor remains responsible for compliance with
38 article seven-B and for all work in common areas required to obtain a
39 residential certificate of occupancy. Cooperative conversion shall be
40 fully in accordance with section three hundred fifty-two-eeee of the
41 general business law, the requirements of the code of the local real
42 estate industry stabilization association, and with the rules and regu-
43 lations promulgated by the attorney general.
44 10. The functions of the local conciliation and appeals board of such
45 municipality regarding owners and tenants subject to rent regulation
46 pursuant to this article shall be carried out by the loft board until
47 such time as provided otherwise by local law.
48 11. Residential occupants qualified for protection pursuant to this
49 article shall be afforded the protections available to residential
50 tenants pursuant to the real property law and the real property actions
51 and proceedings law. RESIDENTIAL OCCUPANTS SHALL BE ALLOWED TO COMMENCE
52 AN ACTION OR PROCEEDING IN A COURT OF COMPETENT JURISDICTION, WHICH
53 NOTWITHSTANDING ANY OTHER PROVISION OF LAW SHALL INCLUDE THE HOUSING
54 PART OF THE NEW YORK CITY CIVIL COURT, TO ENFORCE THE PROVISIONS OF THIS
55 SUBDIVISION.
S. 5780 9
1 12. No waiver of rights pursuant to this article by a residential
2 occupant qualified for protection pursuant to this article made prior to
3 [the effective date of the act which added this article] JUNE
4 TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-TWO shall be accorded any force or
5 effect; however, subsequent to [the effective date] JUNE TWENTY-FIRST,
6 NINETEEN HUNDRED EIGHTY-TWO an owner and a residential occupant may
7 agree to the purchase by the owner of such person's rights in a unit.
8 13. The applicability of the emergency tenant protection act of nine-
9 teen seventy-four to buildings occupied by residential tenants qualified
10 for protection pursuant to this article shall be subject to a declara-
11 tion of emergency by the local legislative body. In the event such act
12 expires prior to the expiration of this article, [tenents] TENANTS in
13 interim multiple dwellings shall be included in coverage of the rent
14 stabilization law of nineteen hundred sixty-nine of the city of New
15 York.
16 S 8. This act shall take effect immediately.
