S00428 Summary:

BILL NOS00428
 
SAME ASSAME AS A03092
 
SPONSORHOYLMAN
 
COSPNSR
 
MLTSPNSR
 
Add Title 22 Chapter 12 §§22-1201 - 22-1206, NYC Ad Cd
 
Prohibits the eviction of small commercial tenants in the city of New York without good cause.
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S00428 Actions:

BILL NOS00428
 
01/06/2021REFERRED TO CITIES 1
01/05/2022REFERRED TO CITIES 1
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S00428 Committee Votes:

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S00428 Floor Votes:

There are no votes for this bill in this legislative session.
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S00428 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           428
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 6, 2021
                                       ___________
 
        Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Cities
 
        AN ACT to amend the administrative code of the  city  of  New  York,  in
          relation  to  prohibiting  the eviction of small commercial tenants in
          the city of New York without good cause
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This act shall be known and may be cited as the "Stop The
     2  Outrageous Retail Evictions Act" or the "STORE Act".
     3    § 2. Title 22 of the administrative code of the city of  New  York  is
     4  amended by adding a new chapter 12 to read as follows:
     5                                 CHAPTER 12
     6             EVICTION PROTECTIONS FOR SMALL COMMERCIAL PREMISES
     7    §  22-1201  Definitions.  As used in this chapter, the following terms
     8  shall have the following meanings:
     9    1. "Landlord" shall mean any owner, lessor,  sublessor,  assignor,  or
    10  other  person receiving or entitled to receive rent for the occupancy of
    11  any small commercial premises, or an agent of any of the foregoing.
    12    2. "Rent" shall mean any consideration, including any  bonus,  benefit
    13  or gratuity demanded or received by a landlord for or in connection with
    14  the  possession,  use or occupancy of a small commercial premises or the
    15  execution or transfer of a lease for such small commercial premises.
    16    3. "Small commercial premises" shall mean a premises that is  occupied
    17  or  used,  or  could be occupied or used, for the purpose of offering or
    18  selling goods at retail and has no more than one thousand square feet of
    19  retail space.
    20    4. "Tenant" shall mean a person or entity lawfully occupying  a  small
    21  commercial premises pursuant to a lease or other rental agreement.
    22    § 22-1202 Scope. This chapter shall apply only to all small commercial
    23  premises in the city of New York.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02233-01-1

        S. 428                              2
 
     1    §  22-1203  Necessity  for good cause. No landlord shall, by action to
     2  evict or to recover possession, by exclusion from possession, by failure
     3  to renew any lease, or otherwise,  remove  any  tenant  from  any  small
     4  commercial premises covered by this chapter except for good cause pursu-
     5  ant to section 22-1204 of this chapter.
     6    §  22-1204 Grounds for removal of tenants. 1. No landlord shall remove
     7  a tenant from any small commercial premises, or attempt such removal  or
     8  exclusion  from possession, notwithstanding that the tenant has no writ-
     9  ten lease or that the lease or other rental  agreement  has  expired  or
    10  otherwise  terminated,  except upon order of a court of competent juris-
    11  diction entered in an appropriate judicial action or proceeding in which
    12  the petitioner or plaintiff has established one of the following grounds
    13  as good cause for removal or eviction:
    14    (a) The tenant has failed to pay rent due and owing, provided that the
    15  rent due and owing, or any part thereof, is not the result of:
    16    (i) a rent increase which is unconscionable or imposed for the purpose
    17  of circumventing the intent of this chapter. In determining whether  all
    18  or  part  of  the  rent due and owing is the result of an unconscionable
    19  rent increase, it shall be a rebuttable presumption that the rent for  a
    20  small  commercial  premises  is  unconscionable  if  said  rent has been
    21  increased in any calendar year by a percentage exceeding  one  and  one-
    22  half  times the annual percentage change in the Consumer Price Index for
    23  the city of New York, as established in the August preceding the  calen-
    24  dar year in question; or
    25    (ii)  the  withholding  of  rental  payments  by the tenant due to the
    26  alleged violations of the lease or rental agreement by the landlord.
    27    (b) The tenant is violating a substantial obligation  of  his  or  her
    28  tenancy,  other  than  the  obligation  to surrender possession, and has
    29  failed to cure such  violation  within  thirty  days  following  written
    30  notice to cure the violation by the landlord, provided however, that the
    31  obligation  of  tenancy for which a violation is claimed was not imposed
    32  for the purpose of circumventing the intent of this chapter.
    33    (c) The tenant is committing or permitting a  nuisance  in  the  small
    34  commercial premises, or is maliciously or by reason of negligence damag-
    35  ing the small commercial premises; or the tenant's conduct is such as to
    36  interfere  with the comfort of other tenants or occupants of the same or
    37  adjacent buildings or structures.
    38    (d) Occupancy of the small commercial premises by  the  tenant  is  in
    39  violation of or causes a violation of law and the landlord is subject to
    40  civil or criminal penalties therefor; provided however that an agency of
    41  the  state  or  municipality  having  jurisdiction  has  issued an order
    42  requiring the tenant to vacate the small commercial premises.  No tenant
    43  shall be removed from possession of a small commercial premises on  such
    44  ground  unless  the  court  finds  that the cure of the violation of law
    45  requires the removal of the tenant and that the landlord did not through
    46  neglect or deliberate action or failure  to  act  create  the  condition
    47  necessitating the vacate order. In instances where the landlord does not
    48  undertake  to  cure  conditions of the small commercial premises causing
    49  such violation of the law, the tenant shall have the  right  to  pay  or
    50  secure  payment  in  a  manner  satisfactory  to the court, to cure such
    51  violation provided that any tenant expenditures shall be applied against
    52  rent to which the landlord is entitled. In instances where removal of  a
    53  tenant  is  absolutely  essential to the tenant's health and safety, the
    54  removal of the tenant shall be without prejudice to any leasehold inter-
    55  est or other right of occupancy the tenant may have and the tenant shall
    56  be entitled to resume possession at such time as  the  dangerous  condi-

        S. 428                              3

     1  tions  have  been  removed.   Nothing herein shall abrogate or otherwise
     2  limit the right of a tenant to bring  an  action  for  monetary  damages
     3  against  the  landlord  to  compel  compliance  by the landlord with all
     4  applicable state or municipal laws or housing codes.
     5    (e) The tenant conducts or permits any form of illegal activity on the
     6  premises.
     7    (f)  The  tenant  has  unreasonably refused the landlord access to the
     8  small commercial premises for the purpose of making necessary repairs or
     9  improvements required by law or for the purpose  of  showing  the  small
    10  commercial  premises  to  a  prospective  purchaser,  mortgagee or other
    11  person having a legitimate interest therein.
    12    (g) The current tenancy was created by the  subletting  of  the  small
    13  commercial  premises,  whereby the prime tenant did not notify the land-
    14  lord of the subtenant's existence and did not obtain the written consent
    15  of the landlord to sublet the small commercial premises. This ground  is
    16  void  if  the  landlord  and  tenant  had  agreed  in the lease to allow
    17  subleasing rights without the consent of  the  landlord  and  all  obli-
    18  gations of the prime tenant on the issue were in compliance.
    19    (h)  It  has been determined by an agency of the state or municipality
    20  having jurisdiction or by a civil court of competent  jurisdiction  that
    21  the tenant is a gross and persistent violator of New York city tax laws,
    22  of  any  license  obligations related to the use of the small commercial
    23  premises or of any laws of the city of New York.
    24    (i) Upon the termination of the current tenancy, the landlord intends,
    25  in good faith,  to  demolish  or  substantially  reconstruct  the  small
    26  commercial  premises  or  a  substantial  part  thereof, or to carry out
    27  substantial work or construction on the commercial premises or  substan-
    28  tial  part  thereof  which  he  or  she  could not reasonably do without
    29  obtaining possession of the  small  commercial  premises.  The  landlord
    30  shall  notify  the tenant of his or her decision to reoccupy the commer-
    31  cial premises at least one year prior to the termination of the tenant's
    32  current lease or rental agreement.
    33    (j) Upon the termination of the current tenancy, the landlord  intends
    34  to occupy the small commercial premises in order to carry out his or her
    35  own business, which cannot be the same type of business that the current
    36  tenant  is operating, unless the landlord compensates the tenant at fair
    37  market value as determined by an arbitrator as restitution for the  loss
    38  of  such  tenant's business. The landlord shall notify the tenant of his
    39  or her decision to reoccupy the premises at  least  one  hundred  eighty
    40  days prior to the termination of the tenant's current lease.
    41    2.  A  tenant  required  to  surrender  a small commercial premises by
    42  virtue of the operation of paragraph (i) or (j) of  subdivision  one  of
    43  this  section  shall  have  a  cause of action in any court of competent
    44  jurisdiction for damages and declaratory and injunctive relief against a
    45  landlord or purchaser of the premises who makes a  fraudulent  statement
    46  regarding  a  proposed  use of the premises. In any action or proceeding
    47  brought pursuant to this provision a prevailing tenant shall be entitled
    48  to recovery of actual damages, and reasonable attorneys' fees.
    49    § 22-1205 Preservation of existing  requirements  of  law.  No  action
    50  shall be maintainable and no judgment of possession shall be entered for
    51  small  commercial  premises pursuant to section 22-1204 of this chapter,
    52  unless the landlord has  complied  with  any  and  all  applicable  laws
    53  governing such action or proceeding.
    54    §  22-1206 Waiver of rights void. Any agreement by a tenant heretofore
    55  or hereinafter entered into in a written lease or other rental agreement

        S. 428                              4
 
     1  waiving or modifying his or her rights as  set  forth  in  this  chapter
     2  shall be void as contrary to public policy.
     3    § 3. Severability. If any provision of this act, or any application of
     4  any  provision of this act, is held to be invalid, that shall not affect
     5  the validity and effectiveness of any other provision of this act, or of
     6  any other application of any provision of this act, which can  be  given
     7  effect  without  that  provision  or  application;  and to that end, the
     8  provisions and applications of this act are severable.
     9    § 4. This act shall take effect immediately and shall apply to actions
    10  and proceedings commenced on or after such effective date.
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