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5667--A
2009-2010 Regular Sessions
I N A S S E M B L Y
February 17, 2009
___________
Introduced by M. of A. V. LOPEZ, LENTOL, MILLMAN, CYMBROWITZ, GOTTFRIED,
KAVANAGH -- Multi-Sponsored by -- M. of A. ABBATE, BENJAMIN, COLTON,
GLICK, JACOBS, ORTIZ, PERRY, ROSENTHAL -- read once and referred to
the Committee on Housing -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the multiple dwelling law, in relation to interim multi-
ple dwellings in a city of more than one million persons and to amend
chapter 349 of the laws of 1982, amending the multiple dwelling law
relating to legalization of interim multiple dwellings in cities over
one million, in relation to extending the effectiveness of such chap-
ter
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 281 of the multiple dwelling law is amended by
2 adding a new subdivision 5 to read as follows:
3 5. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (I), (III) AND (IV) OF
4 SUBDIVISION TWO OF THIS SECTION, BUT SUBJECT TO PARAGRAPHS (I) AND (II)
5 OF SUBDIVISION ONE OF THIS SECTION AND PARAGRAPH (II) OF SUBDIVISION TWO
6 OF THIS SECTION, THE TERM "INTERIM MULTIPLE DWELLING" SHALL INCLUDE
7 BUILDINGS, STRUCTURES OR PORTIONS THEREOF THAT ARE LOCATED IN A CITY OF
8 MORE THAN ONE MILLION PERSONS WHICH WERE OCCUPIED FOR RESIDENTIAL
9 PURPOSES AS THE RESIDENCE OR HOME OF ANY TWO OR MORE FAMILIES LIVING
10 INDEPENDENTLY FROM ONE ANOTHER FOR A PERIOD OF TWELVE CONSECUTIVE MONTHS
11 DURING THE PERIOD COMMENCING JANUARY FIRST, TWO THOUSAND EIGHT, AND
12 ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND NINE. A REDUCTION IN THE
13 NUMBER OF OCCUPIED RESIDENTIAL UNITS IN A BUILDING AFTER MEETING THE
14 AFOREMENTIONED TWELVE CONSECUTIVE MONTH REQUIREMENT SHALL NOT ELIMINATE
15 THE PROTECTIONS OF THIS SECTION FOR ANY REMAINING RESIDENTIAL OCCUPANTS
16 QUALIFIED FOR SUCH PROTECTIONS. NON-RESIDENTIAL SPACE IN A BUILDING AS
17 OF THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE OFFERED FOR RESIDEN-
18 TIAL USE ONLY AFTER THE OBTAINING OF A RESIDENTIAL CERTIFICATE OF OCCU-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08550-02-9
A. 5667--A 2
1 PANCY FOR SUCH SPACE AND SUCH SPACE SHALL BE EXEMPT FROM THIS ARTICLE,
2 EVEN IF A PORTION OF SUCH BUILDING MAY BE AN INTERIM MULTIPLE DWELLING.
3 S 2. Section 282 of the multiple dwelling law, as added by chapter 349
4 of the laws of 1982, is amended to read as follows:
5 S 282. Establishment of special loft unit. In order to resolve
6 complaints of owners of interim multiple dwellings and of residential
7 occupants of such buildings qualified for the protection of this arti-
8 cle, and to act upon hardship applications made pursuant to this arti-
9 cle, a special loft unit referred to herein as the "loft board" shall be
10 established which shall consist of from four to nine members represen-
11 tative of the public, the real estate industry, loft residential
12 tenants, and loft manufacturing interests, and a chairperson, all to be
13 appointed by the mayor of the municipality and to serve such terms as he
14 may designate. The compensation of the members of the loft board shall
15 be fixed by the mayor. The members of the loft board shall not be
16 considered employees of the state or the municipality, provided, howev-
17 er, that state or municipal employees or officers may be named to the
18 loft board. The mayor shall establish the loft board within ninety days
19 of the effective date of [the act which added this article] CHAPTER
20 THREE HUNDRED FORTY-NINE OF THE LAWS OF NINETEEN HUNDRED EIGHTY-TWO.
21 The loft board shall have such office and staff as shall be necessary to
22 carry out functions conferred upon it and may request and receive
23 assistance from any state or municipal agency or department. The loft
24 board shall have the following duties: (a) the determination of interim
25 multiple dwelling status and other issues of coverage pursuant to this
26 article; (b) the resolution of all hardship appeals brought under this
27 article; (c) the determination of any claim for rent adjustment under
28 this article by an owner or tenant; (d) the issuance, after a public
29 hearing, and the enforcement of rules and regulations governing minimum
30 housing maintenance standards in interim multiple dwellings (subject to
31 the provisions of this chapter and any local building code), rent
32 adjustments prior to legalization, compliance with this article and the
33 hearing of complaints and applications made to it pursuant to this arti-
34 cle; and (e) determination of controversies arising over the fair market
35 value of a residential tenant's fixtures or reasonable moving expenses.
36 The violation of any rule or regulation promulgated by the loft board
37 shall be punishable by a civil penalty determined by the loft board not
38 to exceed one thousand dollars which may be recovered by the munici-
39 pality by a proceeding in any court of competent jurisdiction. The loft
40 board may NOT charge [and collect reasonable] fees in the execution of
41 its responsibilities. The loft board may administer oaths, take affida-
42 vits, hear testimony, and take proof under oath at public or private
43 hearings.
44 S 3. Subdivision 1 of section 284 of the multiple dwelling law, as
45 amended by section 2 of part BB of chapter 85 of the laws of 2002, para-
46 graph (v) as amended by section 2 of part PP-1 of chapter 57 of the laws
47 of 2008, is amended to read as follows:
48 1. (i) The owner of an interim multiple dwelling (A) shall file an
49 alteration application within nine months from the effective date of
50 [the act which added this article] CHAPTER THREE HUNDRED FORTY-NINE OF
51 THE LAWS OF NINETEEN HUNDRED EIGHTY-TWO, and (B) shall take all reason-
52 able and necessary action to obtain an approved alteration permit within
53 twelve months from such effective date, and (C) shall achieve compliance
54 with the standards of safety and fire protection set forth in article
55 seven-B of this chapter for the residential portions of the building
56 within eighteen months from obtaining such alteration permit or eighteen
A. 5667--A 3
1 months from such effective date, whichever is later, and (D) shall take
2 all reasonable and necessary action to obtain a certificate of occupancy
3 as a class A multiple dwelling for the residential portions of the
4 building or structure within thirty-six months from such effective date.
5 The loft board may, upon good cause shown, and upon proof of compliance
6 with the standards of safety and fire protection set forth in article
7 seven-B of this chapter, twice extend the time of compliance with the
8 requirement to obtain a residential certificate of occupancy for periods
9 not to exceed twelve months each.
10 (ii) An owner of an interim multiple dwelling who has not complied
11 with the requirements of paragraph (i) of this subdivision by the effec-
12 tive date of [the chapter of the laws of nineteen hundred ninety-two
13 which added this paragraph] CHAPTER TWO HUNDRED TWENTY-SEVEN OF THE LAWS
14 OF NINETEEN HUNDRED NINETY-TWO shall hereafter be deemed in compliance
15 with this subdivision provided that such owner files an alteration
16 application by October first, nineteen hundred ninety-two, takes all
17 reasonable and necessary action to obtain an approved alteration permit
18 by October first, nineteen hundred ninety-three, achieves compliance
19 with the standards of safety and fire protection set forth in article
20 seven-B of this chapter for the residential portions of the building by
21 April first, nineteen hundred ninety-five, or within eighteen months
22 from obtaining an approved alteration permit, whichever is later, and
23 takes all reasonable and necessary action to obtain a certificate of
24 occupancy as a class A multiple dwelling for the residential portions of
25 the building or structure by October first, nineteen hundred ninety-five
26 or within six months from achieving compliance with the aforementioned
27 standards for the residential portions of the building, whichever is
28 later.
29 (iii) An owner of an interim multiple dwelling who has not complied
30 with the requirements of paragraph (i) or (ii) of this subdivision by
31 the effective date of [the chapter of the laws of nineteen hundred nine-
32 ty-six which added this paragraph] CHAPTER THREE HUNDRED NINE OF THE
33 LAWS OF NINETEEN HUNDRED NINETY-SIX shall hereafter be deemed in compli-
34 ance with this subdivision provided that such owner files an alteration
35 application by October first, nineteen hundred ninety-six, takes all
36 reasonable and necessary action to obtain an approved alteration permit
37 by October first, nineteen hundred ninety-seven, achieves compliance
38 with the standards of safety and fire protection set forth in article
39 seven-B of this chapter for the residential portions of the building by
40 April first, nineteen hundred ninety-nine or within eighteen months from
41 obtaining an approved alteration permit whichever is later, and takes
42 all reasonable and necessary action to obtain a certificate of occupancy
43 as a class A multiple dwelling for the residential portions of the
44 building or structure by June thirtieth, nineteen hundred ninety-nine or
45 within three months from achieving compliance with the aforementioned
46 standards for the residential portions of the building, whichever is
47 later.
48 (iv) An owner of an interim multiple dwelling who has not complied
49 with the requirements of paragraph (i), (ii) or (iii) of this subdivi-
50 sion by the effective date of this paragraph as provided in chapter four
51 hundred fourteen of the laws of nineteen hundred ninety-nine which added
52 this paragraph shall hereafter be deemed in compliance with this subdi-
53 vision provided that such owner files an alteration application by
54 September first, nineteen hundred ninety-nine, takes all reasonable and
55 necessary action to obtain an approved alteration permit by March first,
56 two thousand, achieves compliance with the standards of safety and fire
A. 5667--A 4
1 protection set forth in article seven-B of this chapter for the residen-
2 tial portions of the building by May first, two thousand two or within
3 twelve months from obtaining an approved alteration permit whichever is
4 later, and takes all reasonable and necessary action to obtain a certif-
5 icate of occupancy as a class A multiple dwelling for the residential
6 portions of the building or structure by May thirty-first, two thousand
7 two or within one month from achieving compliance with the aforemen-
8 tioned standards for the residential portions of the building, whichever
9 is later.
10 (v) An owner of an interim multiple dwelling who has not complied with
11 the requirements of paragraph (i), (ii), (iii) or (iv) of this subdivi-
12 sion by the effective date of this paragraph as provided in chapter
13 eighty-five of the laws of two thousand two shall hereafter be deemed in
14 compliance with this subdivision provided that such owner filed an
15 alteration application by September first, nineteen hundred ninety-nine,
16 took all reasonable and necessary action to obtain an approved alter-
17 ation permit by March first, two thousand, achieves compliance with the
18 standards of safety and fire protection set forth in article seven-B of
19 this chapter for the residential portions of the building by May first,
20 two thousand ten or within twelve months from obtaining an approved
21 alteration permit whichever is later, and takes all reasonable and
22 necessary action to obtain a certificate of occupancy as a class A
23 multiple dwelling for the residential portions of the building or struc-
24 ture by May thirty-first, two thousand ten or within one month from
25 achieving compliance with the aforementioned standards for the residen-
26 tial portions of the building, whichever is later.
27 (vi) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (I) THROUGH (V) OF
28 THIS SUBDIVISION THE OWNER OF AN INTERIM MULTIPLE DWELLING MADE SUBJECT
29 TO THIS ARTICLE BY SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-ONE OF
30 THIS ARTICLE (A) SHALL FILE AN ALTERATION APPLICATION WITHIN NINE MONTHS
31 FROM THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINE
32 WHICH AMENDED THIS SUBPARAGRAPH, AND (B) SHALL TAKE ALL REASONABLE AND
33 NECESSARY ACTION TO OBTAIN AN APPROVED ALTERATION PERMIT WITHIN TWELVE
34 MONTHS FROM SUCH EFFECTIVE DATE, AND (C) SHALL ACHIEVE COMPLIANCE WITH
35 THE STANDARDS OF SAFETY AND FIRE PROTECTION SET FORTH IN ARTICLE SEVEN-B
36 OF THIS CHAPTER FOR THE RESIDENTIAL PORTIONS OF THE BUILDING WITHIN
37 EIGHTEEN MONTHS FROM OBTAINING SUCH ALTERATION PERMIT OR EIGHTEEN MONTHS
38 FROM SUCH EFFECTIVE DATE, WHICHEVER IS LATER, AND (D) SHALL TAKE ALL
39 REASONABLE AND NECESSARY ACTION TO OBTAIN A CERTIFICATE OF OCCUPANCY AS
40 A CLASS A MULTIPLE DWELLING FOR THE RESIDENTIAL PORTIONS OF THE BUILDING
41 OR STRUCTURE WITHIN THIRTY-SIX MONTHS FROM SUCH EFFECTIVE DATE. THE LOFT
42 BOARD MAY, UPON GOOD CAUSE SHOWN, AND UPON PROOF OF COMPLIANCE WITH THE
43 STANDARDS OF SAFETY AND FIRE PROTECTION SET FORTH IN ARTICLE SEVEN-B OF
44 THIS CHAPTER, TWICE EXTEND THE TIME OF COMPLIANCE WITH THE REQUIREMENT
45 TO OBTAIN A RESIDENTIAL CERTIFICATE OF OCCUPANCY FOR PERIODS NOT TO
46 EXCEED TWELVE MONTHS EACH.
47 (VII) An owner who is unable to satisfy any requirement specified in
48 paragraph (ii), (iii), (iv) [or], (v), OR (VI) of this subdivision for
49 reasons beyond his/her control, including, but not limited to, a
50 requirement to obtain a certificate of appropriateness for modification
51 of a landmarked building, a need to obtain a variance from a board of
52 standards and appeals, or the denial of reasonable access to a residen-
53 tial unit as required by paragraph [(x)] (XI) of this subdivision, may
54 apply to the loft board for an extension of time to meet the requirement
55 specified in paragraph (ii), (iii), (iv) [or], (v), OR (VI) of this
56 subdivision. The loft board may grant an extension of time to meet a
A. 5667--A 5
1 requirement specified in paragraph (ii), (iii), (iv) [or], (v), OR (VI)
2 of this subdivision provided that the owner demonstrates that he/she has
3 made good faith efforts to satisfy the requirements.
4 [(vii)] (VIII) If there is a finding by the loft board that an owner
5 has failed to satisfy any requirement specified in [paragraphs] PARA-
6 GRAPH (i), (ii), (iii), (iv) [and], (v), OR (VI) of this subdivision,
7 such owner shall be subject to all penalties set forth in article eight
8 of this chapter.
9 [(viii)] (IX) In addition to the penalties provided in article eight
10 of this chapter, if there is a finding by the loft board that an owner
11 has failed to satisfy any requirement specified in [paragraphs] PARA-
12 GRAPH (i), (ii), (iii), (iv) [and], (v), OR (VI) of this subdivision, a
13 court may order specific performance to enforce the provisions of this
14 article upon the application of three occupants of separate residential
15 units, qualified for the protection of this article, or upon the appli-
16 cation of the municipality.
17 [(ix)] (X) If, as a consequence of an owner's unlawful failure to
18 comply with the provisions of [paragraphs] PARAGRAPH (i), (ii), (iii),
19 (iv) [and], (v), OR (VI) of this subdivision, any residential occupant
20 qualified for protection pursuant to this article is required to vacate
21 his or her unit as a result of a municipal vacate order, such occupant
22 may recover from the owner the fair market value of any improvements
23 made by such tenant and reasonable moving costs. Any vacate order issued
24 as to such unit by a local government shall be deemed an order to the
25 owner to correct the non-compliant conditions, subject to the provisions
26 of this article. Furthermore, when such correction has been made, such
27 occupant shall have the right to re-occupy his or her unit and shall be
28 entitled to all applicable tenant protections of this article.
29 [(x)] (XI) The occupants of a building shall, upon appropriate notice
30 regarding the timing and scope of the work required, afford the owner
31 reasonable access to their units so that the work necessary for compli-
32 ance with this article can be carried out. Access shall also be
33 afforded, upon reasonable prior notice, for the purpose of inspecting
34 and surveying units as may be required to comply with the provisions of
35 this article and article seven-B of this chapter. Failure to comply with
36 an order of the loft board regarding access shall be grounds for
37 eviction of a tenant.
38 S 4. Subdivision 2 of section 285 of the multiple dwelling law, as
39 amended by chapter 466 of the laws of 1987, is amended to read as
40 follows:
41 2. Notwithstanding any other provision of this article, an owner may
42 apply to the loft board for exemption of a building or portion thereof
43 from this article on the basis that compliance with this article in
44 obtaining a legal residential certificate of occupancy would cause an
45 unjustifiable hardship either because: (i) it would cause an unreason-
46 ably adverse impact on a non-residential conforming use tenant within
47 the building or[,] (ii) the cost of compliance renders legal residential
48 conversion infeasible. Residential and other tenants shall be given not
49 less than sixty days notice in advance of the hearing date for such
50 application. If the loft board approves such application, the building
51 or portion thereof shall be exempt from this article, and may be
52 converted to non-residential conforming uses, provided, however, that
53 the owner shall, as a condition of approval of such application, agree
54 to file an irrevocable recorded covenant in form satisfactory to the
55 loft board enforceable for fifteen years by the municipality, that the
56 building will not be re-converted to residential uses during such time.
A. 5667--A 6
1 The standard for granting such hardship application for a building or
2 portion thereof shall be as follows: (a) the loft board shall only grant
3 the minimum relief necessary to relieve any alleged hardship with the
4 understanding if compliance is reasonably possible it should be achieved
5 even if it requires alteration of units, relocation of tenants to vacant
6 space within the building, re-design of space or application for a non-
7 use-related variance, special permit, minor modification or administra-
8 tive certification; (b) self-created hardship shall not be allowed; (c)
9 the test for cost infeasibility shall be that of a reasonable return on
10 the owner's investment not maximum return on investment; (d) the test
11 for unreasonably adverse impact on a non-residential conforming use
12 tenant shall be whether residential conversion would necessitate
13 displacement. Such hardship applications shall be submitted to the loft
14 board within nine months of the establishment of the loft board (or, in
15 the case of interim multiple dwellings referred to in subdivision four
16 of section two hundred eighty-one of this [chapter] ARTICLE, within nine
17 months of the effective date of [that] SUCH subdivision FOUR OR IN THE
18 CASE OF INTERIM MULTIPLE DWELLINGS MADE SUBJECT TO THIS ARTICLE BY
19 SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-ONE OF THIS ARTICLE,
20 WITHIN NINE MONTHS OF THE EFFECTIVE DATE OF SUCH SUBDIVISION FIVE), but
21 shall not be considered, absent a waiver by the loft board, unless the
22 owner has also filed an alteration application. In determination of any
23 such hardship application, the loft board may demand such information as
24 it deems necessary. In approving any such hardship application, the loft
25 board may fix reasonable terms and conditions for the vacating of resi-
26 dential occupancy.
27 S 5. Subparagraphs (A) and (B) of paragraph (ii) and paragraph (iii)
28 of subdivision 2 of section 286 of the multiple dwelling law, subpara-
29 graphs (A) and (B) of paragraph (ii) as amended by section 3 of part BB
30 of chapter 85 of the laws of 2002 and paragraph (iii) as amended by
31 chapter 414 of the laws of 1999, are amended to read as follows:
32 (A) Upon the owners' filing of an alteration application, as required
33 by paragraph (ii), (iii), (iv) [or], (v), OR (VI) of subdivision one of
34 section two hundred eighty-four of this article, an adjustment equal to
35 six percent of the rent in effect at the time the owner files the alter-
36 ation application.
37 (B) Upon obtaining an alteration permit, as required by paragraph
38 (ii), (iii), (iv) [or], (v), OR (VI) of subdivision one of section two
39 hundred eighty-four of this article, an adjustment equal to eight
40 percent of the rent in effect at the time the owner obtains the alter-
41 ation permit.
42 (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
43 sion shall not apply to units which were rented at market value after
44 June twenty-first, nineteen hundred eighty-two and prior to June twen-
45 ty-first, nineteen hundred ninety-two. THIS PARAGRAPH SHALL NOT APPLY
46 TO UNITS MADE SUBJECT TO THIS ARTICLE BY SUBDIVISION FIVE OF SECTION TWO
47 HUNDRED EIGHTY-ONE OF THIS ARTICLE.
48 S 6. Subdivision 3 of section 286 of the multiple dwelling law, as
49 added by chapter 349 of the laws of 1982, is amended to read as follows:
50 3. Upon or after compliance with the safety and fire protection stand-
51 ards of article seven-B of this chapter, an owner may apply to the loft
52 board for an adjustment of rent based upon the cost of such compliance.
53 Upon approval by the loft board of such compliance, the loft board shall
54 set the initial legal regulated rent, and each residential occupant
55 qualified for protection pursuant to this article shall be offered a
56 residential lease subject to the provisions regarding evictions and
A. 5667--A 7
1 regulation of rent set forth in the emergency tenant protection act of
2 nineteen seventy-four, except to the extent the provisions of this arti-
3 cle are inconsistent with such act. [At such time, the owners of such
4 buildings shall join a real estate industry stabilization association in
5 accordance with such act.]
6 S 7. Section 3 of chapter 349 of the laws of 1982, amending the multi-
7 ple dwelling law relating to legalization of interim multiple dwellings
8 in cities over one million, as amended by section 1 of part PP-1 of
9 chapter 57 of the laws of 2008, is amended to read as follows:
10 S 3. Effective date and termination. This act shall take effect imme-
11 diately. The provisions of this act and all regulations, orders and
12 requirements thereunder shall terminate at the close of the calendar day
13 May 31, [2010] 2014.
14 S 8. This act shall take effect immediately; provided that the amend-
15 ments to sections 281, 282, 284, 285 and 286 of article 7-C of the
16 multiple dwelling law made by sections one through six of this act shall
17 not affect the repeal of such article and shall be deemed repealed ther-
18 ewith, pursuant to section 3 of chapter 349 of the laws of 1982, as
19 amended.
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