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A07467 Summary:

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A07467 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7467--A
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 4, 2011
                                       ___________
 
        Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
          tee  on  Housing -- reported and referred to the Committee on Codes --
          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
 

          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    §  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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11449-02-1
        A. 7467--A                          2
 
     1  zoning resolution for such occupancy. A reduction in the number of occu-
     2  pied  residential  units  in  a  building after December first, nineteen
     3  hundred eighty-one shall not eliminate the protections of  this  article
     4  for  any remaining residential occupants qualified for such protections.
     5  Non-residential space in a building as of [the effective date of the act
     6  which added this article] June twenty-first, nineteen hundred eighty-two

     7  shall be offered for residential use only after the obtaining of a resi-
     8  dential certificate of occupancy for such space, and such space shall be
     9  exempt from this article, even if a portion of such building may  be  an
    10  interim multiple dwelling.
    11    §  3.  Subdivision  5  of section 281 of the multiple dwelling law, as
    12  amended by chapter 147 of the laws  of  2010,  is  amended  to  read  as
    13  follows:
    14    5. Notwithstanding the provisions of paragraphs (i), (iii) and (iv) of
    15  subdivision  two of this section, but subject to paragraphs (i) and (ii)
    16  of subdivision one of this section and paragraph (ii) of subdivision two
    17  of this section, the term  "interim  multiple  dwelling"  shall  include
    18  buildings,  structures or portions thereof that are located in a city of
    19  more than one  million  persons  which  were  occupied  for  residential

    20  purposes  as  the residence or home of any three or more families living
    21  independently from one another for a period of twelve consecutive months
    22  during the period commencing January  first,  two  thousand  eight,  and
    23  ending December thirty-first, two thousand nine, provided that the unit:
    24  is  not  located  in  a basement or cellar and has at least one entrance
    25  that does not require passage through another residential unit to obtain
    26  access to the unit, has at least one window opening onto a street  or  a
    27  lawful  yard or court as defined in the zoning resolution for such muni-
    28  cipality, and is at least five hundred fifty square feet in area.    The
    29  term  "interim  multiple dwelling" as used in this subdivision shall not
    30  include (i) any building in  an  industrial  business  zone  established
    31  pursuant to chapter six-D of title twenty-two of the administrative code

    32  of   the   city   of   New   York   except   that   a  building  in  the
    33  Williamsburg/Greenpoint or North Brooklyn industrial business zones  and
    34  a  building  located  in that portion of the Long Island city industrial
    35  business zone that has frontage on either side of forty-seventh [street]
    36  avenue or is located north of forty-seventh [street] avenue and south of
    37  Skillman avenue or in that portion of the Long  Island  city  industrial
    38  business  zone  that  is  located  north of forty-fourth drive, south of
    39  Queens plaza north, and west of twenty-third street may be  included  in
    40  the  term  "interim  multiple  dwelling,"  or (ii) units in any building
    41  that, at the time this subdivision shall take effect and  continuing  at
    42  the  time of the submission of an application for coverage by any party,

    43  also contains a use actively and currently pursued,  which  use  is  set
    44  forth in use groups fifteen through eighteen, as described in the zoning
    45  resolution  of  such  municipality  in  effect on June twenty-first, two
    46  thousand ten, and which the loft board has determined in rules and regu-
    47  lation is inherently incompatible  with  residential  use  in  the  same
    48  building,  provided that if a building does not contain such active uses
    49  at the time this subdivision takes effect,  no  subsequent  use  by  the
    50  owner  of  the  building shall eliminate the protections of this section
    51  for any residential occupants in the building already qualified for such
    52  protections. The term "interim  multiple  dwelling,"  as  used  in  this
    53  subdivision shall also include buildings, structures or portions thereof
    54  that are located north of West 24th Street and south of West 27th Street

    55  and  west  of tenth avenue and east of eleventh avenue in a city of more
    56  than one million persons which were occupied for residential purposes as
        A. 7467--A                          3
 
     1  the residence or home of any two or more families  living  independently
     2  from  one  another  for a period of twelve consecutive months during the
     3  period commencing January first, two thousand eight, and ending December
     4  thirty-first,  two  thousand  nine and subject to all the conditions and
     5  limitations of this subdivision other than the number of  units  in  the
     6  building.  A  reduction in the number of occupied residential units in a
     7  building after  meeting  the  aforementioned  twelve  consecutive  month
     8  requirement  shall not eliminate the protections of this section for any
     9  remaining residential occupants qualified for such protections.  Non-re-

    10  sidential space in a building as of [the effective date of this subdivi-
    11  sion]  June twenty-first, two thousand ten shall be offered for residen-
    12  tial use only after  the  obtaining  of  a  residential  certificate  of
    13  occupancy  for such space and such space shall be exempt from this arti-
    14  cle, even if a portion of such  building  may  be  an  interim  multiple
    15  dwelling.
    16    §  4.  Paragraph  (vi) of subdivision 1 of section 284 of the multiple
    17  dwelling law, as amended by chapter 135 of the laws of 2010, is  amended
    18  to read as follows:
    19    (vi)  Notwithstanding  the provisions of paragraphs (i) through (v) of
    20  this subdivision the owner of an interim multiple dwelling made  subject
    21  to this article by subdivision five of section two hundred eighty-one of
    22  this article (A) shall file an alteration application within nine months

    23  from  the [effective date of the chapter of the laws of two thousand ten
    24  which amended this subparagraph] promulgation of  the  rules  and  regu-
    25  lations  pursuant  to subdivision five of section two hundred eighty-one
    26  of this article, and (B) shall take all reasonable and necessary  action
    27  to  obtain an approved alteration permit within twelve months from [such
    28  effective date] the promulgation of the rules and  regulations  pursuant
    29  to  subdivision  five of section two hundred eighty-one of this article,
    30  and (C) shall achieve compliance with the standards of safety  and  fire
    31  protection set forth in article seven-B of this chapter for the residen-
    32  tial portions of the building within eighteen months from obtaining such

    33  alteration permit [or eighteen months from such effective date, whichev-
    34  er  is later], and (D) shall take all reasonable and necessary action to
    35  obtain a certificate of occupancy as a class A multiple dwelling for the
    36  residential portions of the  building  or  structure  within  thirty-six
    37  months  from  [such  effective  date]  the promulgation of the rules and
    38  regulations pursuant to subdivision five of section two hundred  eighty-
    39  one of this article. The loft board may, upon good cause shown, and upon
    40  proof of compliance with the standards of safety and fire protection set
    41  forth  in  article  seven-B  of  this  chapter, twice extend the time of
    42  compliance with the requirement to obtain a residential  certificate  of
    43  occupancy for periods not to exceed twelve months each.

    44    §  5.  Paragraph  (ix) of subdivision 1 of section 284 of the multiple
    45  dwelling law, as amended by chapter 135 of the laws of 2010, is  amended
    46  to read as follows:
    47    (ix)  In  addition  to the penalties provided in article eight of this
    48  chapter, if there is a finding by the  loft  board  that  an  owner  has
    49  failed  to  satisfy  any  requirement  specified in paragraph (i), (ii),
    50  (iii), (iv), (v), or (vi) of this subdivision, a court may order specif-
    51  ic performance to enforce the provisions of this article upon the appli-
    52  cation of [three occupants of separate residential units] any  occupant,
    53  qualified for the protection of this article who resides in the affected
    54  interim multiple dwelling, or upon the application of the municipality.
        A. 7467--A                          4
 

     1    §  6.  Subdivision  2  of section 285 of the multiple dwelling law, as
     2  amended by chapter 135 of the laws  of  2010,  is  amended  to  read  as
     3  follows:
     4    2.  Notwithstanding  any other provision of this article, an owner may
     5  apply to the loft board for exemption of a building or  portion  thereof
     6  from  this  article  on  the  basis that compliance with this article in
     7  obtaining a legal residential certificate of occupancy  would  cause  an
     8  unjustifiable  hardship  either because: (i) it would cause an unreason-
     9  ably adverse impact on a non-residential conforming  use  tenant  within
    10  the  building  or  (ii) the cost of compliance renders legal residential
    11  conversion infeasible. Residential and other tenants shall be given  not
    12  less  than  sixty  days  notice  in advance of the hearing date for such
    13  application. If the loft board approves such application,  the  building

    14  or  portion  thereof  shall  be  exempt  from  this  article, and may be
    15  converted to non-residential conforming uses,  provided,  however,  that
    16  the  owner  shall, as a condition of approval of such application, agree
    17  to file an irrevocable recorded covenant in  form  satisfactory  to  the
    18  loft  board  enforceable for fifteen years by the municipality, that the
    19  building will not be re-converted to residential uses during such  time.
    20  The  standard  for  granting such hardship application for a building or
    21  portion thereof shall be as follows: (a) the loft board shall only grant
    22  the minimum relief necessary to relieve any alleged  hardship  with  the
    23  understanding if compliance is reasonably possible it should be achieved
    24  even if it requires alteration of units, relocation of tenants to vacant
    25  space  within the building, re-design of space or application for a non-

    26  use-related variance, special permit, minor modification or  administra-
    27  tive  certification; (b) self-created hardship shall not be allowed; (c)
    28  the test for cost infeasibility shall be that of a reasonable return  on
    29  the  owner's  investment  not maximum return on investment; (d) the test
    30  for unreasonably adverse impact  on  a  non-residential  conforming  use
    31  tenant   shall  be  whether  residential  conversion  would  necessitate
    32  displacement. Such hardship applications shall be submitted to the  loft
    33  board  within nine months of the establishment of the loft board (or, in
    34  the case of interim multiple dwellings referred to in  subdivision  four
    35  of section two hundred eighty-one of this article, within nine months of
    36  [the  effective  date of such subdivision four] June twenty-first, nine-

    37  teen hundred eighty-two or in the case  of  interim  multiple  dwellings
    38  made  subject to this article by subdivision five of section two hundred
    39  eighty-one of this article, within nine months of [the effective date of
    40  such subdivision five] June twenty-first, two thousand ten),  but  shall
    41  not  be  considered, absent a waiver by the loft board, unless the owner
    42  has also filed an alteration application. In determination of  any  such
    43  hardship  application,  the loft board may demand such information as it
    44  deems necessary. In approving any such hardship  application,  the  loft
    45  board  may fix reasonable terms and conditions for the vacating of resi-
    46  dential occupancy.
    47    § 7. Section 286 of the multiple dwelling law, as added by chapter 349
    48  of the laws of 1982, subdivision 2 as amended by chapter 414 of the laws

    49  of 1999, subparagraphs (A) and (B) of paragraph (ii) of  subdivision  2,
    50  paragraph  (iii) of subdivision 2, and subdivision 3 as amended by chap-
    51  ter 135 of the laws of 2010, is amended to read as follows:
    52    § 286. Tenant protection. 1. It shall not be a ground for an action or
    53  proceeding to recover possession of a unit  occupied  by  a  residential
    54  occupant qualified for the protection of this article that the occupancy
    55  of  the  unit  is  illegal or in violation of provisions of the tenant's
    56  lease or rental agreement because a residential certificate of occupancy
        A. 7467--A                          5
 
     1  has not been issued for the building, or because  residential  occupancy
     2  is not permitted by the lease or rental agreement.
     3    2.  (i)  Prior to compliance with safety and fire protection standards

     4  of article seven-B of this chapter, residential occupants qualified  for
     5  protection pursuant to this article shall be entitled to continued occu-
     6  pancy,  provided that the unit is their primary residence, and shall pay
     7  the same rent, [including escalations,]  specified  in  their  lease  or
     8  rental  agreement  to the extent to which such lease or rental agreement
     9  remains in effect or, in the absence of a lease or rental agreement, the
    10  same rent most recently paid and accepted by the owner; if there  is  no
    11  lease  or  other  rental  agreement in effect, rent adjustments prior to
    12  article seven-B compliance shall be in conformity with guidelines to  be
    13  set  by  the loft board for such residential occupants within six months
    14  from [the effective date of this article]  June  twenty-first,  nineteen

    15  hundred  eighty-two,  provided,  however,  that  such  rent adjustments,
    16  allowed pursuant to this  paragraph,  shall  not  apply  to  units  made
    17  subject  to  this  article  by  subdivision  five of section two hundred
    18  eighty-one of this article.
    19    (ii) In addition to any rent adjustment pursuant to paragraph  (i)  of
    20  this  subdivision, on or after June twenty-first, nineteen hundred nine-
    21  ty-two, the rent for residential units  in  interim  multiple  dwellings
    22  that  are not yet in compliance with the requirements of subdivision one
    23  of section two hundred eighty-four of this article shall be adjusted  as
    24  follows:
    25    (A)  Upon the owners' filing of an alteration application, as required
    26  by paragraph (ii), (iii), (iv), (v),  or  (vi)  of  subdivision  one  of
    27  section  two hundred eighty-four of this article, an adjustment equal to

    28  the cost of filing an alteration  application  divided  by  eighty-four,
    29  divided by the amount of square footage located within all of the inter-
    30  im  multiple dwelling units, and then multiplied by the amount of square
    31  footage located within such interim multiple dwelling unit up to a maxi-
    32  mum of six percent of the rent in effect at the time the owner files the
    33  alteration application.  The increase permitted pursuant to this subpar-
    34  agraph shall be collected as a monthly surcharge to the maximum rent. It
    35  shall be separately designated and billed  as  such  and  shall  not  be
    36  compounded  by  any  other adjustment to the maximum rent. Collection of
    37  surcharges pursuant to this subparagraph shall cease when the owner  has

    38  recovered  the cost of filing an alteration application. The owner shall
    39  file with the loft  board  an  explanation  of  how  the  surcharge  was
    40  computed,  and all documents necessary to support the collection of such
    41  surcharge, including but not limited to, cancelled checks, invoices  and
    42  signed  contracts.  Such information shall also be made available to any
    43  legal occupant residing within the affected  interim  multiple  dwelling
    44  unit.
    45    (B)  Upon  obtaining  an  alteration  permit, as required by paragraph
    46  (ii), (iii), (iv), (v), or  (vi)  of  subdivision  one  of  section  two
    47  hundred  eighty-four of this article, an adjustment equal to the cost of
    48  obtaining an alteration permit divided by eighty-four,  divided  by  the

    49  amount  of  square  footage  located  within all of the interim multiple
    50  dwelling units, and then multiplied by  the  amount  of  square  footage
    51  located  within  such  interim multiple dwelling unit up to a maximum of
    52  eight percent of the rent in effect at the time the  owner  obtains  the
    53  alteration permit.  The increase permitted pursuant to this subparagraph
    54  shall  be collected as a monthly surcharge to the maximum rent. It shall
    55  be separately designated and billed as such and shall not be  compounded
    56  by  any  other  adjustment to the maximum rent. Collection of surcharges
        A. 7467--A                          6
 
     1  pursuant to this subparagraph shall cease when the owner  has  recovered

     2  the  cost  of  obtaining an alteration permit. The owner shall file with
     3  the loft board an explanation of how the surcharge was computed, and all
     4  documents necessary to support the collection of such surcharge, includ-
     5  ing but not limited to, cancelled checks, invoices and signed contracts.
     6  Such  information  shall  also  be  made available to any legal occupant
     7  residing within the affected interim multiple dwelling unit.
     8    (C) Upon achieving compliance with the standards of  safety  and  fire
     9  protection set forth in article seven-B of this chapter for the residen-
    10  tial  portions  of  the  building,  an  adjustment  equal to the cost of
    11  achieving compliance with the standards of safety  and  fire  protection

    12  divided  by eighty-four, divided by the amount of square footage located
    13  within all of the interim multiple dwelling units, and  then  multiplied
    14  by  the  amount  of  square footage located within such interim multiple
    15  dwelling unit up to a maximum of six percent of the rent  in  effect  at
    16  the  time  the  owner achieves such compliance.   The increase permitted
    17  pursuant to this subparagraph shall be collected as a monthly  surcharge
    18  to  the  maximum  rent.  It shall be separately designated and billed as
    19  such and shall not be compounded by any other adjustment to the  maximum
    20  rent. Collection of surcharges pursuant to this subparagraph shall cease
    21  when  the  owner has recovered the cost of achieving compliance with the

    22  standards of safety and fire protection.  The owner shall file with  the
    23  loft  board  an  explanation  of how the surcharge was computed, and all
    24  documents necessary to support the collection of such surcharge, includ-
    25  ing but not limited to, cancelled checks, invoices and signed contracts.
    26  Such information shall also be made  available  to  any  legal  occupant
    27  residing within the affected interim multiple dwelling unit.
    28    (D) Owners who filed an alteration application prior to [the effective
    29  date  of  this subparagraph] June twenty-first, nineteen hundred ninety-
    30  two shall be entitled to a prospective adjustment equal to  six  percent
    31  of  the  rent  on [the effective date of this subparagraph] June twenty-

    32  first, nineteen hundred ninety-two.
    33    (E) Owners who obtained an alteration permit  prior  to  June  twenty-
    34  first,  nineteen  hundred  ninety-two shall be entitled to a prospective
    35  adjustment equal to fourteen percent of the rent on  June  twenty-first,
    36  nineteen hundred ninety-two.
    37    (F)  Owners  who  achieved compliance with the standards of safety and
    38  fire protection set forth in article seven-B of  this  chapter  for  the
    39  residential  portions  of the building prior to June twenty-first, nine-
    40  teen hundred ninety-two shall be entitled to  a  prospective  adjustment
    41  equal  to  twenty  percent  of  the  rent on June twenty-first, nineteen
    42  hundred ninety-two.
    43    (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
    44  sion shall not apply to units which were rented at  market  value  after

    45  June  twenty-first, nineteen hundred eighty-two and prior to [June twen-
    46  ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
    47  units made subject to this article by subdivision five  of  section  two
    48  hundred  eighty-one of this article] December thirty-first, two thousand
    49  nine.
    50    (iv) Payment of any rent adjustments pursuant  to  paragraph  (ii)  of
    51  this  subdivision  shall  commence  the  month immediately following the
    52  month in which the act entitling the owner to the adjustment occurred.
    53    3. Upon or after compliance with the safety and fire protection stand-
    54  ards of article seven-B of this chapter, an owner may apply to the  loft
    55  board  for an adjustment of rent based upon the cost of such compliance.
    56  Upon approval by the loft board of such compliance, the loft board shall

        A. 7467--A                          7
 
     1  set the initial legal regulated  rent,  and  each  residential  occupant
     2  qualified  for  protection  pursuant  to this article shall be offered a
     3  residential lease subject to  the  provisions  regarding  evictions  and
     4  regulation  of  rent set forth in the emergency tenant protection act of
     5  nineteen seventy-four, except to the extent the provisions of this arti-
     6  cle are inconsistent with such act.
     7    4. The initial legal regulated rent  established  by  the  loft  board
     8  shall be equal to (i) the rent in effect, [including escalations,] as of
     9  the  date  of  application  for adjustment ("base rent"), plus, (ii) the
    10  maximum annual  amount  of  any  increase  allocable  to  compliance  as
    11  provided  herein;  and  (iii) the percentage increase then applicable to

    12  one, two or three year leases, as elected by the tenant, as  established
    13  by  the  local  rent  guidelines  board,  and  applied to the base rent,
    14  provided, however, such percentage increases may be adjusted downward by
    15  the loft board if prior increases based on loft board  guidelines  cover
    16  part  of the same time period to be covered by the rent guidelines board
    17  adjustments.
    18    5. An owner may apply to the loft  board  for  rent  adjustments  once
    19  based  upon  the cost of compliance with article seven-B of this chapter
    20  and once based upon the obtaining of a residential certificate of  occu-
    21  pancy.  If the initial legal regulated rent has been set based only upon
    22  article  seven-B  compliance,  a further adjustment may be obtained upon
    23  the obtaining of a residential certificate of occupancy. Upon receipt of
    24  such records as the loft board  shall  require,  the  loft  board  shall

    25  determine  the  costs  necessarily  and  reasonably  incurred, including
    26  financing, in obtaining compliance with this article pursuant to a sche-
    27  dule of reasonable costs to be promulgated  by  it.  The  adjustment  in
    28  maximum  rents  for  compliance  with  this  article shall be determined
    29  either (i) by dividing the amount of the cash cost of such  improvements
    30  exclusive  of  interest  and  service  charges over a ten year period of
    31  amortization, or (ii) by dividing the amount of the cash  cost  of  such
    32  improvements  exclusive  of  interest and service charges over a fifteen
    33  year period of  amortization,  plus  the  actual  annual  mortgage  debt
    34  service  attributable  to  interest  and service charges in each year of
    35  indebtedness to an institutional lender, or other lender approved by the
    36  loft board, incurred by the owner to pay the cash cost of  the  improve-

    37  ments,  provided  that the maximum amount of interest charged includable
    38  in rent shall reflect an annual amortization factor of one-fifteenth  of
    39  the  outstanding  principal balance. Rental adjustments to each residen-
    40  tial unit shall be determined on a basis approved by the loft board.  An
    41  owner may elect that the loft board shall deem the total cost of compli-
    42  ance with this article to be the amounts certified by the [local depart-
    43  ment of housing preservation and development] applicable local agency of
    44  such municipality in any certificate of eligibility issued in connection
    45  with  an  application  for  tax exemption or tax abatement to the extent
    46  such certificate reflects categories of costs approved by the loft board
    47  as reasonable and necessary  for  such  compliance.  Rental  adjustments

    48  attributable  to  the  cost  of  compliance  with this article shall not
    49  become part of the base rent for purposes of calculating rents  adjusted
    50  pursuant  to rent guidelines board increases. No rent adjustment allowed
    51  pursuant to this subdivision shall be given for any rent  adjustment  to
    52  cover costs allowed pursuant to subdivision two of this section.
    53    6. Notwithstanding any provision of law to the contrary, a residential
    54  tenant  qualified  for  protection pursuant to this chapter may sell any
    55  improvements to the unit made or purchased by him to an incoming  tenant
    56  provided, however, that the tenant shall first offer the improvements to
        A. 7467--A                          8
 
     1  the  owner for an amount equal to their fair market value. Upon purchase

     2  of such improvements by the owner, any unit subject to  rent  regulation
     3  solely  by reason of this article and not receiving any benefits of real
     4  estate  tax  exemption  or  tax  abatement,  shall  be exempted from the
     5  provisions of this article requiring rent regulation  if  such  building
     6  had  fewer than six [residential] units used for residential purposes as
     7  of [the effective date of the act which added this article, or rented at
     8  market value subject to subsequent rent regulation if such building  had
     9  six  or  more residential units at such time] December thirty-first, two
    10  thousand nine. The loft board  shall  establish  rules  and  regulations
    11  regarding  such sale of improvements which shall include provisions that
    12  such right to sell improvements may be exercised only once for each unit

    13  subject to this article, and  that  the  opportunity  for  decontrol  or
    14  market  rentals  shall  not be available to an owner found guilty by the
    15  loft board of harassment of tenants.
    16    7. The local rent guidelines board shall annually establish guidelines
    17  for rent adjustments for the category of buildings covered by this arti-
    18  cle in accordance with the standards established pursuant to  the  emer-
    19  gency  tenant  protection  act  of nineteen seventy-four. The local rent
    20  guidelines board shall consider the necessity of a separate category for
    21  such buildings, and a separately determined guideline for  rent  adjust-
    22  ments  for  those  units in which heat is not required to be provided by
    23  the owner, and may establish such separate category and guideline.   The
    24  loft  board shall annually commission a study by an independent consult-

    25  ant to assist the rent guidelines board in determining the economics  of
    26  loft housing.
    27    8.  Cooperative  and  condominium  units occupied by owners or tenant-
    28  shareholders shall not be subject to rent regulation  pursuant  to  this
    29  article.
    30    9.  No  eviction  plan  for  conversion  to cooperative or condominium
    31  ownership for a building which is, or a portion of which is  an  interim
    32  multiple dwelling shall be submitted for filing to the department of law
    33  pursuant  to the general business law until a residential certificate of
    34  occupancy is obtained as required by this article, and  the  residential
    35  occupants  qualified for protection pursuant to this article are offered
    36  one, two or three year leases, as elected by such persons, in accordance
    37  with the provisions for establishment of initial  legal  regulated  rent

    38  contained herein. Non-eviction plans for such buildings may be submitted
    39  for  filing  only if the sponsor remains responsible for compliance with
    40  article seven-B and for all work in common areas required  to  obtain  a
    41  residential  certificate  of  occupancy. Cooperative conversion shall be
    42  fully in accordance with section three  hundred  fifty-two-eeee  of  the
    43  general  business  law,  the  requirements of the code of the local real
    44  estate industry stabilization association, and with the rules and  regu-
    45  lations promulgated by the attorney general.
    46    10.  The functions of the local conciliation and appeals board of such
    47  municipality regarding owners and tenants  subject  to  rent  regulation
    48  pursuant  to  this  article shall be carried out by the loft board until
    49  such time as provided otherwise by local law.
    50    11. Residential occupants qualified for protection  pursuant  to  this

    51  article  shall  be  afforded  the  protections  available to residential
    52  tenants pursuant to the real property law and the real property  actions
    53  and proceedings law.  Residential occupants shall be allowed to commence
    54  an  action  or  proceeding  in  a court of competent jurisdiction, which
    55  notwithstanding any other provision of law  shall  include  the  housing
        A. 7467--A                          9
 
     1  part of the New York city civil court, to enforce the provisions of this
     2  subdivision.
     3    12.  No  waiver  of  rights  pursuant to this article by a residential
     4  occupant qualified for protection pursuant to this article made prior to
     5  [the effective date of the act which added this  article]  June  twenty-

     6  first,  nineteen  hundred  eighty-two  shall  be  accorded  any force or
     7  effect; however, subsequent to [the effective date]  June  twenty-first,
     8  nineteen  hundred  eighty-two  an  owner  and a residential occupant may
     9  agree to the purchase by the owner of such person's rights in a unit.
    10    13. The applicability of the emergency tenant protection act of  nine-
    11  teen seventy-four to buildings occupied by residential tenants qualified
    12  for  protection  pursuant to this article shall be subject to a declara-
    13  tion of emergency by the local legislative body. In the event  such  act
    14  expires  prior  to  the expiration of this article, [tenents] tenants in
    15  interim multiple dwellings shall be included in  coverage  of  the  rent
    16  stabilization  law  of  nineteen  hundred  sixty-nine of the city of New
    17  York.

    18    § 8. This act shall take effect immediately.