Bill Text: NY S06570 | 2019-2020 | General Assembly | Introduced

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Bill Title: Prevents landlords from raising commercial rents during a lease without a determination by an arbitrator that such rent increase is not fraudulent and is fair.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CITIES [S06570 Detail]

Download: New_York-2019-S06570-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6570

                               2019-2020 Regular Sessions

                    IN SENATE

                                      June 16, 2019
                                       ___________

        Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the administrative code of the  city  of  New  York,  in
          relation to commercial rent protections

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

     1    Section 1. Title 22 of the administrative code of the city of New York
     2  is amended by adding a new chapter 12 to read as follows:

     3                                  CHAPTER 12
     4                            COMMERCIAL TENANCIES

     5    § 22-1201 Definitions. a. "Commercial premises" shall mean a  building
     6  or space occupied for non-residential purposes including, but not limit-
     7  ed  to,  manufacturing, retail, professional services, offices, assembl-
     8  ing, processing, cultural and not-for-profit entities that  are  present
     9  in the city of New York, who have a valid commercial lease.
    10    b.  "Landlord" shall mean any owner, lessor, sublessor or other person
    11  entitled to receive rent for the use  or  occupancy  of  any  commercial
    12  premises, or an agent thereof.
    13    c.  "Rent"  shall  mean  any  and all consideration, including but not
    14  limited to pass-alongs, received by the landlord in connection with  the
    15  use or occupancy of any commercial premises.
    16    d.  "Tenant"  shall  mean tenant, subtenant, lessee, sublessee, or any
    17  other persons lawfully entitled to use or occupancy  of  any  commercial
    18  premises.
    19    § 22-1203 Commercial rent requirements. a. The rent for any commercial
    20  premises  shall  not be increased by the landlord during the term of the
    21  lease, without the written consent of the tenant, for any reason without
    22  a determination by an arbitrator that such rent increase is not  fraudu-
    23  lent and is not above the fair market value of the commercial premises.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13144-02-9
        S. 6570                             2

     1    b. All arbitration conducted for the purposes of this section shall be
     2  subject  to the provisions of article seventy-five of the civil practice
     3  law and rules. The landlord and the arbitrator shall make a  good  faith
     4  effort  to  allow  the tenant to attend and be heard at a hearing and to
     5  have reasonable time to prepare for such hearing.
     6    c.  In the event that a tenant does not believe a rent increase was in
     7  compliance with subdivision a of this section, the tenant  may  bring  a
     8  civil  action in a court of competent jurisdiction for injunctive relief
     9  and such other remedies as may be appropriate. If  the  court  finds  in
    10  favor  of  the  tenant, it shall award such person, in addition to other
    11  relief, reasonable attorney's fees and costs.
    12    § 22-1205 Retaliation. No landlord shall in any way retaliate  against
    13  any  tenant  for  the tenant's assertion or exercise of any rights under
    14  this chapter.  Any such retaliation may subject the landlord to  a  suit
    15  for actual and punitive damages, injunctive relief, and attorney's fees.
    16    §  22-1207  Waiver.  No  provision  in any lease, rental agreement, or
    17  agreement made in connection with a lease which waives or diminishes any
    18  right of the tenant under this chapter is valid.
    19    § 22-1209 Inconsistency with other laws. In the event  of  any  incon-
    20  sistency with any other laws of the city of New York, this chapter shall
    21  take precedence.
    22    §  22-1211 Commercial lease requirements. a. The lease for any commer-
    23  cial premises shall not contain a waiver of  the  right  to  seek  court
    24  intervention or judicial redress for any issue arising under the lease.
    25    b.  Any provision in any lease, rental agreement, or agreement made in
    26  connection with a lease which waives or diminishes any of the rights  to
    27  judicial  intervention  or  redress  under  this chapter shall be deemed
    28  invalid.
    29    § 2. Severability. If any clause, sentence, paragraph, section or part
    30  of this act shall be adjudged by any court of competent jurisdiction  to
    31  be  invalid  and  after  exhaustion  of all further judicial review, the
    32  judgment shall not affect, impair or invalidate the  remainder  thereof,
    33  but  shall  be  confined in its operation to the clause, sentence, para-
    34  graph, section or part of this act directly involved in the  controversy
    35  in which the judgment shall have been rendered.
    36    §  3.  This  act shall take effect on the ninetieth day after it shall
    37  have become a law.  Effective immediately the addition, amendment and/or
    38  repeal of any rule or regulation necessary  for  the  implementation  of
    39  this  act  on its effective date are authorized to be made and completed
    40  on or before such effective date.