S05953 Summary:

BILL NOS05953
 
SAME ASNo Same As
 
SPONSORRULES
 
COSPNSR
 
MLTSPNSR
 
Amd S17, Chap 576 of 1974; amd S1, Emerg Hous Rent Cont L; amd S2, Chap 329 of 1963; amd S10, Chap 555 of 1982; amd S4, Chap 402 of 1983; amd S46, Chap 116 of 1997; amd SS10 & 14, Pub Hous L; add S171-z, Tax L; amd SS26-516 & 26-413, NYC Ad Cd; amd S12, Emerg Ten Prot Act of 1974
 
Relates to rent regulation and real property tax abatements.
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S05953 Actions:

BILL NOS05953
 
06/12/2015REFERRED TO RULES
06/15/2015ORDERED TO THIRD READING CAL.1597
06/15/2015PASSED SENATE
06/15/2015DELIVERED TO ASSEMBLY
06/15/2015referred to housing
01/06/2016died in assembly
01/06/2016returned to senate
01/06/2016REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
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S05953 Memo:

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S05953 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5953
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                      June 12, 2015
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
          when printed to be committed to the Committee on Rules
 
        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, chapter  555  of
          the laws of 1982 amending the general business law and the administra-
          tive  code  of the city of New York relating to conversion of residen-
          tial property to cooperative or condominium ownership in the  city  of
          New  York,  chapter 402 of the laws of 1983 amending the general busi-
          ness law relating to conversion  of  rental  residential  property  to
          cooperative  or condominium ownership in certain municipalities in the
          counties of Nassau, Westchester and Rockland and the  rent  regulation
          reform act of 1997, in relation to extending the effectiveness thereof
          (Part A); to amend the public housing law, in relation to establishing
          a  tenant protection unit within the division of housing and community
          renewal (Part B); to amend the public housing law and the tax law,  in
          relation  to  income verification for rent controlled apartments (Part
          C); to amend the administrative code of the city of New York  and  the
          emergency  tenant protection act of nineteen seventy-four, in relation
          to enforcement of rent control laws  (Part  D);  and  prohibiting  the
          subletting  of rent controlled apartments except under limited circum-
          stances (Part E)
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This  act enacts into law major components of legislation
     2  relating to rent regulation  and  real  property  tax  abatements.  Each
     3  component  is  wholly  contained  within  a  Part  identified as Parts A
     4  through E. The effective date for each  particular  provision  contained
     5  within  such  Part  is  set  forth in the last section of such Part. Any
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11446-06-5

        S. 5953                             2
 
     1  provision in any section contained within a Part, including  the  effec-
     2  tive  date  of  the  Part, which makes a reference to a section "of this
     3  act", when used in connection with that particular component,  shall  be
     4  deemed  to  mean  and  refer to the corresponding section of the Part in
     5  which it is found. Section three of this  act  sets  forth  the  general
     6  effective date of this act.
 
     7                                   PART A
 
     8    Section  1.  Short  title. This act shall be known and may be cited as
     9  the "rent act of 2015".
    10    § 1-a. Section 17 of chapter 576 of the  laws  of  1974  amending  the
    11  emergency  housing  rent  control  law  relating  to  the control of and
    12  stabilization of rent in certain cases, as amended  by  section  1-a  of
    13  part B of chapter 97 of the laws of 2011, is amended to read as follows:
    14    §  17.  Effective  date.    This act shall take effect immediately and
    15  shall remain in full force and effect until and including the  fifteenth
    16  day  of  June [2015] 2023; except that sections two and three shall take
    17  effect with respect to any city having a population of  one  million  or
    18  more  and  section one shall take effect with respect to any other city,
    19  or any town or village whenever the local legislative body  of  a  city,
    20  town  or village determines the existence of a public emergency pursuant
    21  to section three of the emergency  tenant  protection  act  of  nineteen
    22  seventy-four,  as enacted by section four of this act, and provided that
    23  the housing accommodations subject on the effective date of this act  to
    24  stabilization  pursuant  to  the New York city rent stabilization law of
    25  nineteen hundred sixty-nine shall remain subject to such  law  upon  the
    26  expiration of this act.
    27    §  2.  Subdivision  2  of section 1 of chapter 274 of the laws of 1946
    28  constituting the emergency housing  rent  control  law,  as  amended  by
    29  section  2  of  part  B of chapter 97 of the laws of 2011, is amended to
    30  read as follows:
    31    2. The provisions  of  this  act,  and  all  regulations,  orders  and
    32  requirements  thereunder shall remain in full force and effect until and
    33  including June 15, [2015] 2023.
    34    § 3. Section 2 of chapter 329 of the laws of 1963 amending  the  emer-
    35  gency housing rent control law relating to recontrol of rents in Albany,
    36  as  amended by section 3 of part B of chapter 97 of the laws of 2011, is
    37  amended to read as follows:
    38    § 2. This act shall take effect  immediately  and  the  provisions  of
    39  subdivision  6  of section 12 of the emergency housing rent control law,
    40  as added by this act, shall remain in full force and  effect  until  and
    41  including June 15, [2015] 2023.
    42    § 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
    43  al  business  law  and  the  administrative code of the city of New York
    44  relating to conversion of residential property to cooperative or  condo-
    45  minium  ownership  in  the  city of New York, as amended by section 4 of
    46  part B of chapter 97 of the laws of 2011, is amended to read as follows:
    47    § 10. This act shall  take  effect  immediately;  provided,  that  the
    48  provisions  of  sections  one,  two and nine of this act shall remain in
    49  full force and effect only until and including  June  15,  [2015]  2023;
    50  provided  further that the provisions of section three of this act shall
    51  remain in full force and effect only so long  as  the  public  emergency
    52  requiring  the regulation and control of residential rents and evictions
    53  continues as provided in subdivision 3 of section 1 of the  local  emer-
    54  gency  housing rent control act; provided further that the provisions of

        S. 5953                             3
 
     1  sections four, five, six and seven of this act shall expire  in  accord-
     2  ance with the provisions of section 26-520 of the administrative code of
     3  the city of New York as such section of the administrative code is, from
     4  time  to  time, amended; provided further that the provisions of section
     5  26-511 of the administrative code of the city of New York, as amended by
     6  this act, which the New York City Department of Housing Preservation and
     7  Development must find are contained in  the  code  of  the  real  estate
     8  industry  stabilization association of such city in order to approve it,
     9  shall be deemed contained therein as of the effective date of this  act;
    10  and provided further that any plan accepted for filing by the department
    11  of  law on or before the effective date of this act shall continue to be
    12  governed by the provisions of section 352-eeee of the  general  business
    13  law  as they had existed immediately prior to the effective date of this
    14  act.
    15    § 5. Section 4 of chapter 402 of the laws of 1983 amending the general
    16  business law relating to conversion of rental  residential  property  to
    17  cooperative  or  condominium  ownership in certain municipalities in the
    18  counties of Nassau, Westchester and Rockland, as amended by section 5 of
    19  part B of chapter 97 of the laws of 2011, is amended to read as follows:
    20    § 4. This act  shall  take  effect  immediately;  provided,  that  the
    21  provisions  of  sections  one and three of this act shall remain in full
    22  force and effect only until and including  June  15,  [2015]  2023;  and
    23  provided  further that any plan accepted for filing by the department of
    24  law on or before the effective date of this act  shall  continue  to  be
    25  governed  by  the  provisions of section 352-eee of the general business
    26  law as they had existed immediately prior to the effective date of  this
    27  act.
    28    §  6.  Subdivision  6 of section 46 of chapter 116 of the laws of 1997
    29  constituting the rent regulation reform  act  of  1997,  as  amended  by
    30  section  6  of  part  B of chapter 97 of the laws of 2011, is amended to
    31  read as follows:
    32    6. sections twenty-eight, twenty-eight-a, twenty-eight-b  and  twenty-
    33  eight-c  of  this act shall expire and be deemed repealed after June 15,
    34  [2015] 2023;
    35    § 7. This act shall take effect immediately.
 
    36                                   PART B
 
    37    Section 1. Section 10 of the public housing law, as amended by chapter
    38  398 of the laws of 1961, is amended to read as follows:
    39    § 10. Division of housing and community renewal. 1. There shall be  in
    40  the  executive  department  a division of housing and community renewal.
    41  Reference in this chapter or in any other general, special or local  law
    42  to  the  division  of  housing  shall be deemed to mean and refer to the
    43  division of housing and community renewal which is hereby made  the  new
    44  title of such division.
    45    2.  The  division  of  housing  and community renewal is authorized to
    46  establish a tenant protection unit.    The  commissioner,  through  such
    47  unit, shall have the following powers:
    48    (a)  to  conduct  audits and hearings thereon to review rent increases
    49  resulting from individual apartment improvements authorized pursuant  to
    50  paragraph thirteen of subdivision c of section 26-511 of the administra-
    51  tive code of the city of New York or paragraph one of subdivision (d) of
    52  section  six of the emergency tenant protection act of nineteen seventy-
    53  four. Such audits may require the production of books, papers,  records,
    54  contracts,  checks or any other documents relevant and material to indi-

        S. 5953                             4
 
     1  vidual apartment improvements. Any audit shall be limited to those indi-
     2  vidual apartment improvements for which rent  increases  resulting  from
     3  such  improvements  took effect within three calendar years prior to the
     4  date of the notice of the audit;
     5    (b)  to  audit  compliance  by  owners  of housing accommodations with
     6  respect to annual registration requirements pursuant to  section  26-517
     7  of  the administrative code of the city of New York and section twelve-A
     8  of the emergency tenant protection act of nineteen seventy-four; and
     9    (c)  to  investigate,  administer  oaths,  issue  subpoenas  and  make
    10  inspections  upon  the  receipt  of  a tenant complaint that establishes
    11  reasonable cause to believe that  violations  of  the  emergency  tenant
    12  protection  act  of nineteen seventy-four, the rent stabilization law of
    13  nineteen hundred sixty-nine, the emergency housing rent control law  and
    14  the local emergency housing rent control act have occurred.
    15    3.  (a) For the purposes of this section, the selection of an individ-
    16  ual apartment improvement for audit shall be conducted on a random basis
    17  by the tenant protection unit from among those  improvements  for  which
    18  rent  increases  which  took effect within three calendar years prior to
    19  the date of notice of such audit. Any such selection shall be done in  a
    20  manner  such  that  the identity of the owner whose individual apartment
    21  improvement is selected for audit is not known to such unit.  The  divi-
    22  sion  of  housing  and  community  renewal  shall promulgate regulations
    23  setting forth its methodology for the conduct of such random audits  and
    24  to  ensure  that  individual  apartment  improvements  are  audited in a
    25  uniform and consistent manner.
    26    (b) Notwithstanding the foregoing, the tenant protection unit shall be
    27  authorized upon a finding of fraud  or  intentional  misconduct  in  the
    28  calculation  of rent increases to expand the scope of its audit to other
    29  units owned by a common owner or to extend the period of  time  for  the
    30  audit.
    31    (c)  The  owner  of  such housing accommodation shall be provided with
    32  notice of the audit and hearing thereon. The owner shall, at a  minimum,
    33  be  provided  with the reasonable opportunity to respond at least thirty
    34  days prior to a hearing date where the owner, at his or her option,  has
    35  an  opportunity  to  be  heard  in-person, present witnesses, and submit
    36  evidence. Such  owner  shall  be  entitled  to  provide  books,  papers,
    37  records,  contracts,  checks  or  any  other documents in support of and
    38  relating to the rent increase and the individual apartment improvement.
    39    (d) After such hearing, the tenant  protection  unit  shall  determine
    40  whether the correct amount of rent increase resulting from an individual
    41  apartment  improvement was charged and collected by the owner. Where the
    42  tenant protection unit determines  that  such  correct  amount  was  not
    43  charged  and  collected  by  the owner, the owner shall be liable to the
    44  tenant for such total amount, plus interest. The tenant protection  unit
    45  shall  inform  the  owner, in writing, via certified mail, no later than
    46  thirty calendar days after such hearing, whether the correct amount  was
    47  charged and collected.
    48    (e)  Any  determination by the tenant protection unit shall be subject
    49  to a petition for administrative review by the  deputy  commissioner  of
    50  the  office  of  rent  administration which shall issue a final determi-
    51  nation. The division of housing and community renewal  shall,  by  regu-
    52  lation,  provide  for  the  administrative  review of all determinations
    53  issued by the tenant protection unit pursuant to this section.  A  peti-
    54  tion for such review shall be disposed of by a final determination with-
    55  in  ninety  days  after it is filed, or it shall be deemed to be denied.
    56  Provided, however, such regulation shall provide for one  extension  not

        S. 5953                             5
 
     1  to  exceed  thirty  days upon the consent of the party filing such peti-
     2  tion. A final determination or a presumptive denial  by  the  office  of
     3  rent  administration  shall  be  subject  to judicial review pursuant to
     4  article seventy-eight of the civil practice law and rules.
     5    (f)  Notwithstanding  any  other  provisions  of  law, a determination
     6  pursuant to this section  that  the  correct  amount  of  rent  increase
     7  resulting  from  an individual apartment improvement was not charged and
     8  collected by the owner shall constitute the sole  and  exclusive  remedy
     9  for  any  and  all  claims by the division or the tenant of such housing
    10  accommodation relating to such increase and any such determination shall
    11  preclude any other administrative or judicial actions or proceedings  by
    12  the  division  or  such  tenant  arising  from  or relating to such rent
    13  increase or such improvement; provided further that a shortfall  in  the
    14  amount  that was charged may result in an immediate increase, commencing
    15  from the date of the finding.
    16    (g) The division of housing and community renewal shall establish  and
    17  make  publicly  available guidelines and best practices regarding proper
    18  record retention and documentation procedures for owners who have or may
    19  intend to perform improvements that may be subject to audit pursuant  to
    20  this  section.  Such guidelines shall also set forth a form affidavit by
    21  which owners may attest  to  the  performance  of  individual  apartment
    22  improvements in those instances where the documentation relating to such
    23  improvements  is unavailable, including but not limited to, because such
    24  documents were damaged or destroyed by fire, flood or any  other  cause,
    25  because  they were not provided to the current owner by the prior owner,
    26  or for any other reason attested to in good faith.
    27    § 2. This act shall take effect on the ninetieth day  after  it  shall
    28  have become a law; provided however the division of housing and communi-
    29  ty  renewal  is  authorized  and  directed to promulgate rules and regu-
    30  lations necessary for the implementation of this act on or  before  such
    31  date.
 
    32                                   PART C
 
    33    Section 1. Section 14 of the public housing law is amended by adding a
    34  new subdivision 7 to read as follows:
    35    7.  (a)  Notwithstanding  any  provision  of  law to the contrary, the
    36  commissioner shall establish a system to identify and verify  qualifica-
    37  tion  of  any  lessee entering into or renewing a lease for an apartment
    38  subject to the emergency tenant protection act of nineteen seventy-four,
    39  the rent stabilization law of nineteen hundred sixty-nine, the emergency
    40  housing rent control law and the local emergency rent control  act,  and
    41  to  document  and  retain  a  record of every such lessee and every such
    42  apartment that is subject to such provisions.
    43    (b) Such system shall require the submission of information, in a form
    44  and manner determined by the commissioner, by any owner,  within  ninety
    45  days of the effective date of this subdivision to identify and catalogue
    46  each  apartment,  owned and maintained by such owner, that is subject to
    47  the emergency tenant protection act of nineteen seventy-four,  the  rent
    48  stabilization  law of nineteen hundred sixty-nine, the emergency housing
    49  rent control law and the local  emergency  rent  control  act,  and  any
    50  lessee  currently  residing  in  such  apartment.  Such submission shall
    51  include: address, including apartment number, number of bedrooms; square
    52  footage; and any other information deemed necessary by the  commissioner
    53  to  identify such apartment. Such submission shall also contain informa-
    54  tion identifying the current lessee of the apartment, if such  apartment

        S. 5953                             6
 
     1  is  leased, or resident of such apartment including: full name; terms of
     2  the lease; and any other information deemed necessary by the commission-
     3  er to identify such lessee. Upon  the  submission  and  review  of  such
     4  information,  the  commissioner shall maintain a database containing all
     5  such information so submitted identifying every such apartment  and  any
     6  lessee or resident of such apartment.
     7    (c)  After  the  completion  of  the period for submission pursuant to
     8  paragraph (b) of this subdivision, such information shall be shared with
     9  the New York state  department  of  taxation  and  finance  pursuant  to
    10  section one hundred seventy-one-z of the tax law.
    11    (d)  Any findings pursuant to section one hundred seventy-one-z of the
    12  tax law that a lessee or resident of any such apartment does not satisfy
    13  any income eligibility or residency requirements prescribed by the emer-
    14  gency tenant protection act of nineteen seventy-four, the rent  stabili-
    15  zation  law  of  nineteen hundred sixty-nine, the emergency housing rent
    16  control law and the local emergency rent control act for the  applicable
    17  income  tax  year shall result in a written notice within thirty days of
    18  such finding, by the commissioner to the owner of such apartment of such
    19  a finding.
    20    (e) Any findings pursuant to section one hundred seventy-one-z of  the
    21  tax  law  that  the  eligibility of such lessee cannot be verified shall
    22  result, within sixty days of such finding, of a audit,  conducted  in  a
    23  form  and  manner prescribed by the commissioner in cooperation with the
    24  New York state department of taxation and finance,  of  such  lessee  or
    25  resident  to verify such lessee or resident qualifies to lease an apart-
    26  ment subject to the emergency tenant protection act of  nineteen  seven-
    27  ty-four,  the rent stabilization law of nineteen hundred sixty-nine, the
    28  emergency housing rent control law and the local emergency rent  control
    29  act.  Upon  the  completion  of an audit pursuant to this paragraph that
    30  results in a finding that a lessee or resident  of  any  such  apartment
    31  does  not  satisfy  any  income  eligibility  or  residency requirements
    32  prescribed by the emergency tenant protection act of  nineteen  seventy-
    33  four,  the  rent  stabilization  law of nineteen hundred sixty-nine, the
    34  emergency housing rent control law and the local emergency rent  control
    35  act  for  the applicable income tax year, the commissioner shall provide
    36  written notice, within thirty days of such finding, to the owner of such
    37  apartment notifying such owner of such finding.
    38    (f) The commissioner shall, periodically, require further  submissions
    39  consistent  with  this  subdivision  to  update  any such information so
    40  retained.
    41    (g) Notwithstanding any provision to  the  contrary,  any  information
    42  retained  by  the commissioner pursuant to this subdivision shall not be
    43  subject to disclosure pursuant to article six  of  the  public  officers
    44  law.
    45    §  2.  The tax law is amended by adding a new section 171-z to read as
    46  follows:
    47    § 171-z. Income verification for any resident subject to the emergency
    48  tenant protection act of nineteen seventy-four, the  rent  stabilization
    49  law  of  nineteen hundred sixty-nine, the emergency housing rent control
    50  law and the local emergency rent control act. (1) The  department  shall
    51  enter  into an agreement with the New York state division of housing and
    52  community renewal, hereinafter referred to as the division,  to  verify,
    53  to  the extent practicable, whether a lessee or resident of an apartment
    54  subject to the emergency tenant protection act of nineteen seventy-four,
    55  the rent stabilization of law of nineteen hundred sixty-nine, the  emer-
    56  gency  housing rent control law and the local emergency rent control act

        S. 5953                             7
 
     1  meet any income eligibility and  residency  requirements  prescribed  by
     2  such  laws for the applicable income tax year, beginning with the income
     3  tax year ending in two thousand fifteen. Such  agreement  shall  include
     4  provisions  associated  with  the sharing of information retained by the
     5  division pursuant to subdivision seven of section fourteen of the public
     6  housing law.
     7    (2) The department shall advise the division of its findings,  stating
     8  in each case either that such lessee or resident does or does not satis-
     9  fy any such requirements pursuant to subdivision one of this section, or
    10  that  the  eligibility  of  such  lessee or resident cannot be verified,
    11  whichever is appropriate. The department shall  not  provide  any  other
    12  information about the income of such lessee to the division.
    13    (3)  Further  verifications may occur after the tax year prescribed in
    14  subdivision one of this section as determined  in  conjunction  with  an
    15  agreement between the commissioner and the division.
    16    (4) The provisions of article six of the public officers law shall not
    17  apply to any information that the department obtains from or provides to
    18  the division pursuant to this section.
    19    §  3.  This  act shall take effect on the ninetieth day after it shall
    20  have become a law.
 
    21                                   PART D
 
    22    Section 1. Paragraphs 1 and 2 of subdivision c of  section  26-516  of
    23  the administrative code of the city of New York, as amended by section 1
    24  of chapter 480 of the laws of 2009, are amended to read as follows:
    25    (1)  to  have  violated  an order of the division the commissioner may
    26  impose by administrative order after hearing, a civil  penalty  [in  the
    27  amount  of  one  thousand dollars for the first such offense and two] at
    28  minimum in the amount of one thousand but not  to  exceed  two  thousand
    29  dollars  for  the  first such offense, and at a minimum in the amount of
    30  two thousand but not to exceed three thousand dollars  for  each  subse-
    31  quent offense; or
    32    (2)  to have harassed a tenant to obtain vacancy of his or her housing
    33  accommodation, the commissioner may impose by administrative order after
    34  hearing, a civil penalty for any such violation. Such penalty  shall  be
    35  [in  the  amount of two thousand dollars for a first such offense and up
    36  to ten] at a minimum in the amount of two thousand  but  not  to  exceed
    37  three thousand dollars for the first such offense, and at minimum in the
    38  amount  of  ten  thousand  but not to exceed eleven thousand dollars for
    39  each subsequent  offense  or  for  a  violation  consisting  of  conduct
    40  directed at the tenants of more than one housing accommodation.
    41    § 2. Paragraph 2 of subdivision c of section 26-516 of the administra-
    42  tive  code  of  the city of New York, as amended by section 2 of chapter
    43  480 of the laws of 2009, is amended to read as follows:
    44    (2) to have harassed a tenant to obtain vacancy of his or her  housing
    45  accommodation, the commissioner may impose by administrative order after
    46  hearing,  a  civil penalty for any such violation. Such penalty shall be
    47  [in the amount of two thousand dollars for a first such offense  and  up
    48  to ten] at minimum in the amount of two thousand but not to exceed three
    49  thousand  dollars  for  the  first such offense, and at a minimum in the
    50  amount of ten thousand but not to exceed  eleven  thousand  dollars  for
    51  each  subsequent  offense  or  for  a  violation  consisting  of conduct
    52  directed at the tenants of more than one housing accommodation.
    53    § 3. Subparagraph (a) of paragraph  2  of  subdivision  b  of  section
    54  26-413 of the administrative code of the city of New York. as amended by

        S. 5953                             8
 
     1  section  3  of  chapter  480  of the laws of 2009, is amended to read as
     2  follows:
     3    (a)  Impose by administrative order after hearing, a civil penalty for
     4  any violation of said section and bring an action to recover same in any
     5  court of competent jurisdiction. Such penalty in the case of a violation
     6  of subdivision d of such section shall be [in the amount of two thousand
     7  dollars for the first offense and ten] at minimum in the amount  of  two
     8  thousand  but  not  to  exceed three thousand dollars for the first such
     9  offense, and at minimum in the amount of ten thousand but not to  exceed
    10  eleven  thousand  dollars for each subsequent offense or for a violation
    11  consisting of conduct directed at the tenants of more than  one  housing
    12  accommodation;  and  in  the case of any other violation of such section
    13  [in the amount of one thousand dollars for the first  such  offense  and
    14  two]  at  minimum  in  the  amount of one thousand but not to exceed two
    15  thousand dollars for the first such  offense,  and  at  minimum  in  the
    16  amount of two thousand but not to exceed three thousand dollars for each
    17  subsequent offense. Such order by the city rent agency shall be deemed a
    18  final  determination  for the purposes of judicial review as provided in
    19  section 26-411 of this chapter. Such action shall be brought  on  behalf
    20  of  the city and any amount recovered shall be paid into the city treas-
    21  ury. Such right of action may be released, compromised  or  adjusted  by
    22  the  city  rent  agency  at  any time subsequent to the issuance of such
    23  administrative order.
    24    § 4. Subparagraph (a) of paragraph  2  of  subdivision  b  of  section
    25  26-413 of the administrative code of the city of New York, as amended by
    26  section  4  of  chapter  480  of the laws of 2009, is amended to read as
    27  follows:
    28    (a) Impose by administrative order after hearing, a civil penalty  for
    29  any violation of said section and bring an action to recover same in any
    30  court of competent jurisdiction. Such penalty in the case of a violation
    31  of subdivision d of such section shall be [in the amount of two thousand
    32  dollars  for  a  first such offense and ten] at minimum in the amount of
    33  two thousand but not to exceed three thousand dollars for the first such
    34  offense, and at minimum in the amount of ten thousand but not to  exceed
    35  eleven  thousand  dollars for each subsequent offense or for a violation
    36  consisting of conduct directed at the tenants of more than  one  housing
    37  accommodation;  and  in  the case of any other violation of such section
    38  [in the amount of one thousand dollars for the first  such  offense  and
    39  two]  at  minimum  in  the  amount of one thousand but not to exceed two
    40  thousand dollars for the first such  offense,  and  at  minimum  in  the
    41  amount of two thousand but not to exceed three thousand dollars for each
    42  subsequent offense. Such order by the city rent agency shall be deemed a
    43  final  determination  for the purposes of judicial review as provided in
    44  section 26-411 of this chapter. Such action shall be brought  on  behalf
    45  of  the city and any amount recovered shall be paid into the city treas-
    46  ury. Such right of action may be released, compromised  or  adjusted  by
    47  the  city  rent  agency  at  any time subsequent to the issuance of such
    48  administrative order.
    49    § 5. Clauses (i) and (ii) of paragraph 3 of subdivision a  of  section
    50  12  of  section  4  of  chapter 576 of the laws of 1974 constituting the
    51  emergency tenant protection act of nineteen seventy-four, as amended  by
    52  section  5  of  chapter  480 of the laws of 2009, are amended to read as
    53  follows:
    54    (i) to have violated an order of the  division  the  commissioner  may
    55  impose  by  administrative  order after hearing, a civil penalty [in the
    56  amount of one thousand dollars for the first such offense  and  two]  at

        S. 5953                             9
 
     1  minimum  in  the  amount  of one thousand but not to exceed two thousand
     2  dollars for the first such offense, and at minimum in the amount of  two
     3  thousand  but  not  to exceed three thousand dollars for each subsequent
     4  offense; or
     5    (ii) to have harassed a tenant to obtain vacancy of his housing accom-
     6  modation,  the  commissioner  may  impose  by administrative order after
     7  hearing, a civil penalty for any such violation. Such penalty  shall  be
     8  in  [the  amount  of two thousand dollars for the first such offense and
     9  ten] at minimum in the amount of two thousand but not  to  exceed  three
    10  thousand  dollars  for  the  first  such  offense, and at minimum in the
    11  amount of ten thousand but not to exceed  eleven  thousand  dollars  for
    12  each  subsequent  offense  or  for  a  violation  consisting  of conduct
    13  directed at the tenants of more than one housing accommodation.
    14    § 6. Clause (ii) of paragraph 3 of subdivision  a  of  section  12  of
    15  section  4 of chapter 576 of the laws of 1974 constituting the emergency
    16  tenant protection act of nineteen seventy-four, as amended by section  6
    17  of chapter 480 of the laws of 2009, is amended to read as follows:
    18    (ii) to have harassed a tenant to obtain vacancy of his housing accom-
    19  modation,  the  commissioner  may  impose  by administrative order after
    20  hearing, a civil penalty for any such violation. Such penalty  shall  be
    21  [in  the  amount  of two thousand dollars for the first such offense and
    22  ten] at minimum in the amount of two thousand but not  to  exceed  three
    23  thousand  dollars  for  the  first  such  offense, and at minimum in the
    24  amount of ten thousand but not to exceed  eleven  thousand  dollars  for
    25  each  subsequent  offense  or  for  a  violation  consisting  of conduct
    26  directed at the tenants of more than one housing accommodation.
    27    § 7. This act shall take effect immediately; provided, however, that:
    28    1. the amendments to section 26-516 of chapter 4 of title  26  of  the
    29  administrative code of the city of New York made by sections one and two
    30  of  this act shall expire on the same date as such law expires and shall
    31  not affect the expiration of such law as provided under  section  26-520
    32  of such law;
    33    2.  the amendments to section 4 of the emergency tenant protection act
    34  of nineteen seventy-four made by sections five and six of this act shall
    35  expire on the same date as such act expires and  shall  not  affect  the
    36  expiration  of  such act as provided in section 17 of chapter 576 of the
    37  laws of 1974;
    38    3. the amendments to section 26-413 of the  city  rent  and  rehabili-
    39  tation  law  made by sections three and four of this act shall remain in
    40  full force and effect only as long as the public emergency requiring the
    41  regulation and control of residential rents and evictions continues,  as
    42  provided  in  subdivision  3 of section 1 of the local emergency housing
    43  rent control act;
    44    4. the amendments to paragraph 2 of subdivision c of section 26-516 of
    45  the administrative code of the city of New York made by section  one  of
    46  this  act shall be subject to the expiration and reversion of such para-
    47  graph pursuant to section 46 of chapter 116 of  the  laws  of  1997,  as
    48  amended,  when  upon such date the provisions of section two of this act
    49  shall take effect;
    50    5. the amendments to subparagraph (a) of paragraph 2 of subdivision  b
    51  of  section  26-413  of  the administrative code of the city of New York
    52  made by section three of this act shall be subject to the expiration and
    53  reversion of such subparagraph pursuant to section 46 of chapter 116  of
    54  the  laws  of  1997,  as  amended, when upon such date the provisions of
    55  section four of this act shall take effect; and

        S. 5953                            10
 
     1    6. the amendments to clause (ii) of paragraph 3 of  subdivision  a  of
     2  section  12 of section 4 of chapter 576 of the laws of 1974 constituting
     3  the emergency tenant protection act of  nineteen  seventy-four  made  by
     4  section  five  of this act shall be subject to the expiration and rever-
     5  sion of such clause pursuant to section 46 of chapter 116 of the laws of
     6  1997,  as  amended, when upon such date the provisions of section six of
     7  this act shall take effect.
 
     8                                   PART E
 
     9    Section 1. Notwithstanding any provision of law to  the  contrary,  no
    10  apartment  subject  to  the  emergency tenant protection act of nineteen
    11  seventy-four, the rent stabilization law of nineteen hundred sixty-nine,
    12  the emergency housing rent control law  and  the  local  emergency  rent
    13  contract  act  shall  be  authorized  to be sublet for any period unless
    14  authorized to be  sublet  within  any  respective  lease  agreement  and
    15  approval  of  such  sublet  is received from the division of housing and
    16  community renewal. Any amounts  so  charged  by  the  sublessor  to  the
    17  sublessee  for  such  sublet  shall not exceed the proportional share of
    18  rent charged for such period by the lessor to  the  lessee.  Any  lessee
    19  found  to  be  in violation of this act shall be subject to a penalty of
    20  one thousand dollars or three times the amount charged and received  for
    21  such  sublease.  Such  penalty  shall  be enforced by the New York state
    22  division of housing and community renewal.
    23    § 2. This act shall take effect on the ninetieth day  after  it  shall
    24  have become a law.
    25    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    26  sion,  section  or  part  of  this act shall be adjudged by any court of
    27  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    28  impair,  or  invalidate  the remainder thereof, but shall be confined in
    29  its operation to the clause, sentence, paragraph,  subdivision,  section
    30  or part thereof directly involved in the controversy in which such judg-
    31  ment shall have been rendered. It is hereby declared to be the intent of
    32  the  legislature  that  this  act  would  have been enacted even if such
    33  invalid provisions had not been included herein.
    34    § 3. This act shall take effect immediately  provided,  however,  that
    35  the  applicable effective date of Parts A through E of this act shall be
    36  as specifically set forth in the last section of such Parts.
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