A00706 Summary:

BILL NOA00706
 
SAME ASSAME AS UNI. S00991
 
SPONSORLentol (MS)
 
COSPNSRMarkey, Millman, Jacobs, Colton, Brennan, Rosenthal
 
MLTSPNSRAubry, Cook, Dinowitz, Glick, Hikind, Perry, Pheffer
 
Add SS28-103.23 & 28-201.5, NYC Ad Cd
 
Requires developers to deposit a portion of the total estimated project cost into an escrow account for damage caused to neighboring properties during construction; provides that any work on a project shall be stopped until repairs are made on the adjoining property; provides that the New York city department of buildings shall develop a procedure whereby individuals who suffer damage as a result of the construction may be reimbursed within a period of sixty days.
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A00706 Actions:

BILL NOA00706
 
01/05/2011referred to cities
01/04/2012referred to cities
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A00706 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A706
 
SPONSOR: Lentol (MS)
  TITLE OF BILL: An act to amend the administrative code of the city of New York, in relation to establishing escrow accounts to protect neigh- boring landowners and tenants from damage due to construction   PURPOSE OR GENERAL IDEA OF BILL: Requires developers to deposit a portion of the total estimated project cost into an escrow account for damage caused to neighboring properties during construction.   SUMMARY OF SPECIFIC PROVISIONS: The Administrative Code of the City of New York is amended by adding a new section 28-103.21 and a new section 28-201.5   JUSTIFICATION: This legislation seeks to address a serious problem affecting long standing property owners whose property is damaged by contractors building on adjacent property in the City of New York. Currently, if a developer or contractor is working on property adjacent to or near an existing parcel and damages the existing property, the owner of the existing damaged building is held liable for correcting any resulting violations to his/her property. Often the New York City Build- ings Department, when called to intervene in such disputes, cites the property owner-whose property was damaged by the contractor-for building code violations despite the fact that the damage was entirely caused by the contractor operating under a permit issued by the Buildings Depart- ment. The innocent property owner often gets violations requiring the payment of fines and may have to vacate his/her property until the damage is corrected sometimes at great expense. The innocent owner will likely not recover damages. Instead, he/she expends large sums of money on legal fees incurred in a long drawn-out civil suit. This legislation will require every developer to pay into an escrow account which would be used for "quick claims" by injured parties, and would create a system of processing these quick claims to allow injured parties, property owners or tenants, to be made whole by negligent contractors in a timely manner. This legislation will also prohibit the Buildings Department from issu- ing fines to property owners who have been victimized by the negligence of those working on adjacent properties. If damages occur to an adjoin- ing property, any and all work on such project will be stopped until the damage property is repaired by the developer.   PRIOR LEGISLATIVE HISTORY: First introduced in Senate in 2010. First introduced in Assembly in 2006.   FISCAL IMPLICATIONS: None to the State   EFFECTIVE DATE: Ninety days after it shall have become a law.
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A00706 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 991                                                    A. 706
 
                               2011-2012 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                       (Prefiled)
 
                                     January 5, 2011
                                       ___________
 
        IN  SENATE  --  Introduced  by Sen. MONTGOMERY -- read twice and ordered
          printed, and when printed to be committed to the Committee on Cities
 
        IN ASSEMBLY -- Introduced by M. of A. LENTOL, MARKEY,  MILLMAN,  JACOBS,

          COLTON,  BRENNAN,  ROSENTHAL  -- Multi-Sponsored by -- M. of A. AUBRY,
          COOK, DINOWITZ,  GLICK,  HIKIND,  PERRY,  PHEFFER  --  read  once  and
          referred to the Committee on Cities
 
        AN  ACT  to  amend  the  administrative code of the city of New York, in
          relation to establishing escrow accounts to protect neighboring  land-
          owners and tenants from damage due to construction
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The administrative code of the city of New York is  amended
     2  by adding a new section 28-103.23 to read as follows:
     3    § 28-103.23 Developers' escrow accounts. 1. Any developer who plans to
     4  construct  any building within the city shall, prior to the commencement

     5  of any construction, deposit ten percent of the total estimated  project
     6  cost into an escrow account.
     7    2.  An  escrow account established pursuant to subdivision one of this
     8  section shall be used to settle claims of property owners whose property
     9  is damaged during any construction, or the claims  of  tenants  who  are
    10  displaced  from  their residence as the result of damage to the property
    11  from the construction. A developer shall be held strictly liable for any
    12  damage  or  relocation  expense  that  occurs  as  a   result   of   the
    13  construction.
    14    3.  In addition to the requirements imposed by subdivision one of this
    15  section, if any damages occur to an adjoining property, any and all work

    16  on such  project  shall  be  stopped  until  such  damaged  property  is
    17  repaired.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02374-01-1

        S. 991                              2                             A. 706
 
     1    4.  The  department  shall  establish  a  claim procedure for property
     2  owners and tenants who wish to file claims against the money  set  aside
     3  pursuant  to  this  section. Such procedure shall provide for a complete
     4  resolution of a claim within sixty days from the date of  its  commence-
     5  ment.

     6    5. Any funds in the account that are not claimed by an aggrieved prop-
     7  erty  owner  or  tenant  within  six  months after the completion of the
     8  project shall be returned to the developer.
     9    § 2. The administrative code of the city of New  York  is  amended  by
    10  adding a new section 28-201.5 to read as follows:
    11    §  28-201.5  Violations  not  caused by property owner. The department
    12  shall not impose any fine or other penalty against  any  property  owner
    13  for  any  violation  of  the  provisions of this title that occur as the
    14  result of damage caused by construction on an adjacent building.
    15    § 3. This act shall take effect on the ninetieth day  after  it  shall
    16  have become a law.
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