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A06216 Summary:

BILL NOA06216B
 
SAME ASSAME AS S02980-C
 
SPONSORRosenthal L
 
COSPNSR
 
MLTSPNSR
 
Amd 26-511 & 26-517, NYC Ad Cd; amd 10-b, 5 & 12-a, Emerg Ten Prot Act of 1974; amd 14, rpld 14 sub 4 (d), Pub Hous L
 
Establishes the legal regulated rent for the combination of two or more vacant apartments; defines permanently vacated; relates to exemptions from rent stabilization on the basis of substantial rehabilitation; relates to public hearings by the city rent agency (Part A); relates to clearly defining the scope of the fraud exception to the pre-HSTPA four-year rule for calculating rents (Part B); relates to the failure of owners to file rent registration statements and the enforcement powers of the commissioner of housing and community renewal (Part C).
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A06216 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6216B
 
SPONSOR: Rosenthal L
  PURPOSE: The legislature passed the Housing Stability and Tenant Protection Act of 2019 to transform and strengthen many of our state's laws that protect tenants and provide housing stability. This bill seeks to address certain gaps in these laws that persist after that landmark legislation and to make some technical corrections.   SUMMARY OF PROVISIONS: Section 1 of the bill sets components Parts A, B, andforth the structure of the bill, with three C. PART A Section 1 of Part A of the the administrative code of graph 15.bill amends subdivision c of section 26-511 of the city of New York by adding a new paragraph 15 Part (a) of the new paragraph 15 provides that where a landlord combines two or more vacant rent stabilized apartments, the legal regulated rent for the combined apartment shall be the sum of the rents of the formerly separate apartments. If a non-regulated apartment is combined with a regulated apartment, the resulting apartment shall be subject to rent regulation. Part (b) of the new paragraph 15 provides that where a landlord substan- tially increases the outer dimensions of a unit, the initial legal regu- lated rent for that unit shall be its prior rent plus a percentage of. rent that is equal to the percentage by which the unit has increased. Other authorized increases may also apply. Part (c) of the new paragraph 15 provides for the denial of rent increases if vacancy had previously occurred due to harassment, fraud, or other acts of evasion. Part (d) of the new paragraph 15 provides that where the units are combined pursuant to a federal, state, or local regulatory agreement, the rent of the combined units shall be the amount of an initial rent set by the regulatory agency, Part (e) of the new paragraph 15 provides that where a landlord substan- tially reduces the dimensions of a unit, the initial legal regulated rent for the reduced apartment shall be the prior rent reduced in proportion to the reduction in floor area. Other authorized increases may also apply. Part (f) of the new paragraph 15 specifies guidelines as to the manner in which provisions governing individual apartment improvements may apply to the combination of units. Part (g) of the new paragraph 15 requires owners to maintain records and rent histories of all combined apartments before and after combination. Section 2 of Part A amends subdivision (a) of section 10-b of the emer- gency tenant protection act of 1974 by adding a new paragraph 13 in the same manner as Section 1 of the bill amends the New York city adminis- trative code, as described above. Section 3 of Part A of the bill amends the opening paragraph of para- graph (a) of subdivision 4 of section 14 of the public housing law to define the term "permanently vacated" for the purpose of determining succession rights of a member of a tenant's family. Section 4 of Part A of the bill repeals paragraph d of subdivision 4 of section 14 of the public housing law relating to the vacancy bonus and references which were repealed as part of the HSTPA. Section 5 of Part A of the bill amends paragraph 5 of subdivision a of section 5 of section 4 of chapter 576 of the laws of 1974 constituting the emergency tenant protection act of 1974 to clarify and limit the circumstances in which a landlord may claim exemption from rent stabili- zation on the basis of substantial rehabilitation, and to require approval for such claim by the division of housing and community renewal. Section 6 of Part A of the bill sets forth the effective date for Part A, providing that it shall take effect immediately and shall apply to all pending proceedings on and after such date; provided that the amend- ments to section 26-511 of chapter 4 of title 26 of the administrative code of the city of New York made by section one of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law. PART B Section 1 of Part B of the bill sets forth the legislative findings. Section 2 of Part B of the bill sets forth various provisions regarding the use, retention, and destruction of certain records, and the circum- stances in which a landlord shall be deemed to have committed fraud when unlawfully deregulating or failing to register an apartment. Section 3 of Part B of the bill sets forth the effective date for Part D, providing that it shall take effect immediately. Part C Sections 1 and 2 of Part C of the bill amends the administrative code of the City of New York and the emergency tenant protection act of nineteen seventy-four, respectively, to establish a penalty for building owners' failure to file a timely rent registration statement with the NYS Divi- sion of Housing and Community Renewal for rent-regulated apartments. An owner shall be fined $500 per unregistered unit for each month a regis- tration is delinquent, and such fine shall be subject to enforcement in court. Section 1 of Part C of the bill amends subdivision e of section 26-517 of the administrative code of the City of New York for that purpose. Section 2 of Part C of the bill amends subdivision e of section 12-a of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, for the same purpose. Section 3 of Part C of the bill amends subdivision 1 of section 14 of the public housing law by adding a new paragraph x to specify as powers and duties of the commissioner of the Division of Housing and Community Renewal their enforcement authority over all the laws, rules, and regu- lations related to housing that is financed, administered, overseen, or otherwise regulated by the agency. ' Section 4 of Part C of the bill sets forth the effective date for Part E, providing that it shall take effect immediately, provided that the amendments to section 26-517 of chapter 4 of title-26 of the administra- tive code of the city of New York made by section one of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law. Section 2 of the bill sets forth a severability clause. Section 3 of the bill sets forth the effective date (below).   JUSTIFICATION: The Housing Stability and Tenant Protection Act of 2019 (HSTPA) trans- formed and strengthened many of the state's laws that protect tenants and provide housing stability. This bill seeks to address certain gaps in these laws that persist after that landmark legislation in the vari- ous ways detailed in the summary of provisions above and to make some technical corrections. Part A Sections 1 and 2 On August 31, 2022, NYS Homes and Community Renewal (HCR) released proposed updates to the regulations authorized under the rent stabiliza- tion laws, including language that would address the combination of rent-regulated units (a practice sometimes popularly known as "franken- steining"), which has enabled owners to set a new first rent for the combined unit, often at a much higher level than the rents of the once separate apartments. Adopting NCR's proposed regulations in statute would address this issue and ensure combined units remain at a level of affordability that matches the increases or reductions in unit size. Section 3 This part also defines what constitutes "permanently vacated," with the goal of providing clarity on instances where a tenant's move-out may not correspond with the end of a lease or the termination of rent payments. This is needed to address the fact that courts have differed in their interpretation of current law, with the first and second appellate divi- sions holding different views. The provisions of this bill would conform the rule to the second department's position, to ensure that family members eligible for succession do not lose their rights because of a delay in reporting vacatur to the landlord. Section 4 The HSTPA repealed vacancy bonuses for rent regulated units in all sections of law referenced in this paragraph. Section 5 By requiring owners to seek and secure approval from HCR prior to claim- ing rent stabilization exemption on the basis of substantial rehabili- tation, the added level of agency oversight would prevent the destabili- zation of units where owners fail to substantiate their claims of having substantial work performed that merits exemption from rent stabiliza- tion. Part B This amendment will help clarify and codify the standard for applying a fraud exception to the four-year rule that was in place before HSTPA was enacted, in light of Burrows v. 75-25 153rd Street LLC.   LEGISLATIVE HISTORY: 2021-2022: S7213A (Kavanagh) - referred to Housing.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Minimal   EFFECTIVE DATE: This act shall take effect immediately provided, however, that the applicable effective date of Parts A through C of this act shall be as specifically set forth in the last section of such Parts.
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A06216 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6216--B
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      April 3, 2023
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Housing -- committee discharged,  bill  amended,  ordered
          reprinted  as  amended  and  recommitted  to  said  committee -- again
          reported from said committee with  amendments,  ordered  reprinted  as
          amended and recommitted to said committee

        AN  ACT to amend the administrative code of the city of New York and the
          emergency tenant protection act of nineteen seventy-four, in  relation
          to  establishing the  legal regulated rent for the  combination of two
          or more vacant  apartments;  to  amend  the  public  housing  law,  in
          relation  to  defining  permanently  vacated;  to  amend the emergency
          tenant  protection  act  of  nineteen  seventy-four,  in  relation  to
          exemptions  from  rent stabilization on the basis of substantial reha-
          bilitation; and to repeal paragraph (d) of subdivision 4 of section 14
          of the public housing law, in relation thereto  (Part  A);  to  define
          clearly  the  scope  of the fraud exception to the pre-HSTPA four-year
          rule for calculating rents (Part B); and to amend  the  administrative
          code  of  the city of New York, the emergency tenant protection act of
          nineteen seventy-four and the public housing law, in relation  to  the
          failure  of  owners  to  file  rent  registration  statements  and the
          enforcement powers  of  the  commissioner  of  housing  and  community
          renewal (Part C)
 
          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 components of legislation relating
     2  to rent regulation and  tenant  protection.  Each  component  is  wholly
     3  contained  within  a Part identified as Parts A through C. The effective
     4  date for each particular provision contained within  such  Part  is  set
     5  forth  in  the  last  section of such Part. Any provision in any section
     6  contained within a Part, including the effective date of the Part, which
     7  makes reference to a section "of this act", when used in connection with
     8  that particular component, shall be deemed to  mean  and  refer  to  the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07250-11-3

        A. 6216--B                          2
 
     1  corresponding section of the Part in which it is found. Section three of
     2  this act sets forth the general effective date of this act.
 
     3                                   PART A
 
     4    Section 1.  Subdivision c of section 26-511 of the administrative code
     5  of  the city of New York is amended by adding a new paragraph 15 to read
     6  as follows:
     7    (15) (a) where an owner combines two or more vacant  housing  accommo-
     8  dations  or  combines  a  vacant  housing accommodation with an occupied
     9  housing accommodation, such initial rent for such new  housing  accommo-
    10  dation shall be the combined legal rent for both previous housing accom-
    11  modations,  subject  to any applicable guideline increases and any other
    12  increases authorized by this chapter including any individual  apartment
    13  improvement  increases applicable for both housing accommodations. If an
    14  owner combines a rent regulated  accommodation  with  an  apartment  not
    15  subject  to rent regulation, the resulting apartment shall be subject to
    16  this chapter. If an owner increases the area of an apartment not subject
    17  to rent regulation by adding space that was previously part  of  a  rent
    18  regulated apartment, each apartment shall be subject to this chapter.
    19    (b)  where  an  owner substantially increases the outer dimension of a
    20  vacant housing accommodation, such initial rent shall be the prior  rent
    21  of  such  housing accommodation, increased by a percentage that is equal
    22  to the  percentage  increase  in  the  dwelling  space  and  such  other
    23  increases  authorized by this chapter including any applicable guideline
    24  increase and individual apartment improvement  increase  that  could  be
    25  authorized for the unit prior to the alteration of the outer dimensions.
    26    (c)  notwithstanding subparagraphs (a) and (b) of this paragraph, such
    27  increases may be denied based on the occurrence of such vacancy  due  to
    28  harassment,  fraud, or other acts of evasion which may require that such
    29  rent be set in accordance with section 26-516 of this title.
    30    (d) where the vacant housing accommodations  are  combined,  modified,
    31  divided or the dimension of such housing accommodation otherwise altered
    32  and  these  changes are being made pursuant to a preservation regulatory
    33  agreement with a federal, state or local governmental agency or  instru-
    34  mentality,  the  rent stabilized rents charged thereafter shall be based
    35  on an initial rent set by such agency or instrumentality, provided  such
    36  initial rent shall not be higher than if the initial rent was calculated
    37  in accordance with subparagraphs (a), (b), (e) or (f) of this paragraph.
    38    (e)  where  an owner substantially decreases the outer dimensions of a
    39  vacant housing accommodation, such initial rent shall be the prior  rent
    40  of  such  housing  accommodation,  decreased  by the same percentage the
    41  square footage of the original apartment was decreased by and such other
    42  increases authorized by this chapter including any applicable  guideline
    43  increase  and  individual  apartment  improvement increase that could be
    44  authorized for the apartment prior to the alteration of the outer dimen-
    45  sions.
    46    (f)(i) when an owner combines two or more rent  regulated  apartments,
    47  the  owner may use each of the previous apartments' remaining individual
    48  apartment improvement allowances for the purposes of a  temporary  indi-
    49  vidual apartment improvement rent increase. The owner shall subsequently
    50  designate  a  surviving  apartment for the purposes of registration that
    51  has the same apartment number as one of the prior  apartments.  If  that
    52  prior  apartment  has  any reimbursable individual apartment improvement
    53  money remaining after the combination, that money may be reimbursed  for

        A. 6216--B                          3
 
     1  future  individual  apartment  improvements undertaken within the subse-
     2  quent fifteen years following the combination.
     3    (ii)  in  order  for  an  owner  to qualify for a temporary individual
     4  apartment improvement rent increase when apartments  are  combined,  the
     5  requirements  for  an  individual  apartment  improvement, including all
     6  notification requirements under this chapter shall be met.
     7    (g) owners shall maintain  the  records  and  rent  histories  of  all
     8  combined  apartments,  both  prior  to  and  post  combination,  for the
     9  purposes of rent setting, overcharge and all other proceedings to  which
    10  the records are applicable.
    11    §  2.  Subdivision  (a) of section 10-b of section 4 of chapter 576 of
    12  the laws of 1974, constituting the emergency tenant  protection  act  of
    13  nineteen  seventy-four,  is amended by adding a new paragraph 13 to read
    14  as follows:
    15    13. (i) where an owner combines two or more  vacant  housing  accommo-
    16  dations  or  combines  a  vacant  housing accommodation with an occupied
    17  housing accommodation, such initial rent for such new  housing  accommo-
    18  dation shall be the combined legal rent for both previous housing accom-
    19  modations,  subject  to any applicable guideline increases and any other
    20  increases authorized by this chapter including any individual  apartment
    21  improvement  increases applicable for both housing accommodations. If an
    22  owner combines a rent regulated  accommodation  with  an  apartment  not
    23  subject  to rent regulation, the resulting apartment shall be subject to
    24  this act.  If an owner increases the area of an apartment not subject to
    25  rent regulation by adding space that was previously part of a rent regu-
    26  lated apartment, each apartment shall be subject to this act.
    27    (ii) where an owner substantially increases the outer dimension  of  a
    28  vacant  housing accommodation, such initial rent shall be the prior rent
    29  of such housing accommodation, increased by a percentage that  is  equal
    30  to  the  percentage  increase  in  the  dwelling  space  and  such other
    31  increases authorized by this  act  including  any  applicable  guideline
    32  increase  and  individual  apartment  improvement increase that could be
    33  authorized for the unit prior to the alteration of the outer dimensions.
    34    (iii) notwithstanding subparagraphs (i) and (ii)  of  this  paragraph,
    35  such increases may be denied based on the occurrence of such vacancy due
    36  to  harassment,  fraud,  or other acts of evasion which may require that
    37  such rent be set in accordance with section twelve of this act.
    38    (iv) where the vacant housing accommodations are  combined,  modified,
    39  divided or the dimension of such housing accommodation otherwise altered
    40  and  these  changes are being made pursuant to a preservation regulatory
    41  agreement with a federal, state or local governmental agency or  instru-
    42  mentality,  the  rent stabilized rents charged thereafter shall be based
    43  on an initial rent set by such agency or instrumentality, provided  such
    44  initial rent shall not be higher than if the initial rent was calculated
    45  in  accordance  with  subparagraphs (i), (ii), (v) or (vi) of this para-
    46  graph.
    47    (v) where an owner substantially decreases the outer dimensions  of  a
    48  vacant  housing accommodation, such initial rent shall be the prior rent
    49  of such housing accommodation, decreased  by  the  same  percentage  the
    50  square footage of the original apartment was decreased by and such other
    51  increases  authorized  by  this  act  including any applicable guideline
    52  increase and individual apartment improvement  increase  that  could  be
    53  authorized for the apartment prior to the alteration of the outer dimen-
    54  sions.
    55    (vi)(1)  when an owner combines two or more rent regulated apartments,
    56  the owner may use each of the previous apartments' remaining  individual

        A. 6216--B                          4
 
     1  apartment  improvement  allowances for the purposes of a temporary indi-
     2  vidual apartment improvement rent increase. The owner shall subsequently
     3  designate a surviving apartment for the purposes  of  registration  that
     4  has  the  same  apartment number as one of the prior apartments. If that
     5  prior apartment has any reimbursable  individual  apartment  improvement
     6  money  remaining after the combination, that money may be reimbursed for
     7  future individual apartment improvements undertaken  within  the  subse-
     8  quent fifteen years following the combination.
     9    (2) in order for an owner to qualify for a temporary individual apart-
    10  ment  improvement  rent  increase  when  apartments  are  combined,  the
    11  requirements for an  individual  apartment  improvement,  including  all
    12  notification requirements under this act shall be met.
    13    (vii)  owners  shall  maintain  the  records and rent histories of all
    14  combined apartments,  both  prior  to  and  post  combination,  for  the
    15  purposes  of rent setting, overcharge and all other proceedings to which
    16  the records are applicable.
    17    § 3. The opening paragraph  of  paragraph  (a)  of  subdivision  4  of
    18  section  14  of  the  public housing law, as added by chapter 116 of the
    19  laws of 1997, is amended to read as follows:
    20    that unless otherwise prohibited by occupancy restrictions based  upon
    21  income  limitations pursuant to federal, state or local law, regulations
    22  or other requirements  of  governmental  agencies,  any  member  of  the
    23  tenant's  family, as defined in paragraph (c) of this subdivision, shall
    24  succeed to the rights of a tenant under such acts  and  laws  where  the
    25  tenant has permanently vacated the housing accommodation and such family
    26  member  has  resided  with  the tenant in the housing accommodation as a
    27  primary residence for a period of no less than two years, or where  such
    28  person is a "senior citizen" or a "disabled person," as defined in para-
    29  graph  (c)  of  this subdivision, for a period of no less than one year,
    30  immediately prior to the permanent vacating of the housing accommodation
    31  by the tenant, or from the inception of the tenancy or  commencement  of
    32  the  relationship,  if  for less than such periods.  For the purposes of
    33  this paragraph, "permanently vacated"  shall  mean  the  date  when  the
    34  tenant of record permanently stops residing in the housing accommodation
    35  regardless  of subsequent contacts with the unit or the signing of lease
    36  renewals or continuation  of  rent  payments.  The  minimum  periods  of
    37  required  residency set forth in this subdivision shall not be deemed to
    38  be interrupted by any period during which the "family member"  temporar-
    39  ily relocates because he or she:
    40    § 4.  Paragraph (d) of subdivision 4 of section 14 of the public hous-
    41  ing law is REPEALED.
    42    § 5. Paragraph 5 of subdivision a of section 5 of section 4 of chapter
    43  576  of  the  laws of 1974, constituting the emergency tenant protection
    44  act of nineteen seventy-four, is amended to read as follows:
    45    (5)  housing  accommodations  in  buildings  completed  or   buildings
    46  substantially  rehabilitated  as family units on or after January first,
    47  nineteen hundred seventy-four; provided that an owner claiming exemption
    48  from rent stabilization on the basis of substantial rehabilitation shall
    49  seek approval from state division of housing and community renewal with-
    50  in one year of the completion of the substantial rehabilitation, or  for
    51  any building previously alleged to have been substantially rehabilitated
    52  before  the  effective  date  of the chapter of the laws of two thousand
    53  twenty-three that amended this paragraph,  within  six  months  of  such
    54  effective  date,  and  ultimately  obtain  such approval, which shall be
    55  denied on the following grounds:

        A. 6216--B                          5
 
     1    (a) the owner or its predecessors in interest have engaged in  harass-
     2  ment  of  tenants  in  the  five  years  preceding the completion of the
     3  substantial rehabilitation;
     4    (b)  the  building  was not in a substandard or seriously deteriorated
     5  condition requiring substantial rehabilitation;
     6    § 6. This act shall take effect immediately and  shall  apply  to  all
     7  pending proceedings on and after such date; provided that the amendments
     8  to section 26-511 of chapter 4 of title 26 of the administrative code of
     9  the city of New York made by section one of this act shall expire on the
    10  same  date  as  such  law expires and shall not affect the expiration of
    11  such law as provided under section 26-520 of such law.
 
    12                                   PART B
 
    13    Section 1. Legislative findings.  The  legislature  hereby  finds  and
    14  declares  that  in  light  of  court decisions arising under the Housing
    15  Stability and Tenant Protection Act of 2019  (HSTPA),  including  Regina
    16  Metro  v.  DHCR, it is public policy that the legislature define clearly
    17  the scope of the fraud exception to the  pre-HSTPA  four-year  rule  for
    18  calculating  rents which remains unsettled and the subject of litigation
    19  where courts have diverged from the controlling authority of Thornton v.
    20  Baron and Grimm v. DHCR to impose a common law fraud  standard  that  is
    21  not  found  in  these  cases  and is inconsistent with the intent of the
    22  legislature to discourage and penalize fraud against the rent regulatory
    23  system itself, as well as against individual tenants, and it  is  there-
    24  fore  public  policy  that  the legislature codify, without expanding or
    25  reducing the liability of landlords under pre-HSTPA  law,  the  standard
    26  for applying that exception.
    27    §  2.  (a)  Nothing  in this act, or the HSTPA, or prior law, shall be
    28  construed as restricting, impeding or diminishing the use of records  of
    29  any  age  or  type,  going  back  to  any date that may be relevant, for
    30  purposes of determining the status  of  any  apartment  under  the  rent
    31  stabilization law;
    32    (b)  With  respect  to  the  calculation of legal rents for the period
    33  either prior to or subsequent to June 14, 2019, an owner shall be deemed
    34  to have committed fraud if the owner shall  have  committed  a  material
    35  breach  of  any  duty, arising under statutory, administrative or common
    36  law, to disclose truthfully to any tenant, government agency or judicial
    37  or administrative tribunal, the rent, regulatory status, or lease infor-
    38  mation, for purposes of claiming an unlawful rent or  claiming  to  have
    39  deregulated  an  apartment,  whether or not the owner's conduct would be
    40  considered fraud under the common law, and whether or not a  complaining
    41  tenant  specifically  relied  on  untruthful or misleading statements in
    42  registrations, leases, or other documents. The following  conduct  shall
    43  be  presumed  to  have  been the product of such fraud: (1) the unlawful
    44  deregulation of any apartment, including such  deregulation  as  results
    45  from  claiming  an unlawful increase such as would have brought the rent
    46  over the deregulation threshold that existed under prior law, unless the
    47  landlord can prove good faith reliance on a directive or  ruling  by  an
    48  administrative  agency or court; or (2) beginning October 1, 2011, fail-
    49  ing to register, as rent stabilized, any apartment in a building receiv-
    50  ing J-51 or 421-a benefits.
    51    § 3. This act shall take effect immediately.
 
    52                                   PART C

        A. 6216--B                          6
 
     1    Section 1. Subdivision e of section 26-517 of the administrative  code
     2  of  the city of New York, as amended by chapter 253 of the laws of 1993,
     3  is amended to read as follows:
     4    e.  The  failure  to  file  a proper and timely initial or annual rent
     5  registration statement shall, until such time as  such  registration  is
     6  filed,  bar  an owner from applying for or collecting any rent in excess
     7  of the legal regulated rent in effect on the date of the last  preceding
     8  registration  statement  or  if  no such statements have been filed, the
     9  legal regulated rent in effect on the date  that  the  housing  accommo-
    10  dation  became subject to the registration requirements of this section.
    11  The filing of a late registration shall result in the prospective elimi-
    12  nation of such sanctions and provided that increases in the legal  regu-
    13  lated rent were lawful except for the failure to file a timely registra-
    14  tion,  the  owner,  upon  the service and filing of a late registration,
    15  shall not be found to have collected an overcharge at any time prior  to
    16  the filing of the late registration. [If such late registration is filed
    17  subsequent  to the filing of an overcharge complaint, the owner shall be
    18  assessed a late filing surcharge for each late registration in an amount
    19  equal to fifty percent of the timely rent registration fee.] In addition
    20  to all other requirements set forth in this subdivision, in the event  a
    21  timely  rent  registration  is not filed and after notice of such delin-
    22  quency is provided by  the  state  division  of  housing  and  community
    23  renewal  to  the  owner  in  the form of electronic mail and mail to the
    24  address listed in the owner's most recent  registration  statement,  the
    25  owner  shall  be  subject to a fine of five hundred dollars per unregis-
    26  tered unit for each month the registration is delinquent.  Such  a  fine
    27  shall  be  imposed  by  order,  and  such order imposing a fine shall be
    28  deemed a final determination for the purposes of judicial  review.  Such
    29  fine  may, upon the expiration of the period for seeking review pursuant
    30  to article seventy-eight of the civil practice law and rules, be docket-
    31  ed and enforced in the manner of a judgment of the supreme court by  the
    32  state division of housing and community renewal.
    33    §  2. Subdivision e of section 12-a of section 4 of chapter 576 of the
    34  laws of 1974 constituting the emergency tenant protection act  of  nine-
    35  teen  seventy-four,  as  amended  by chapter 253 of the laws of 1993, is
    36  amended to read as follows:
    37    e. The failure to file a proper and  timely  initial  or  annual  rent
    38  registration  statement  shall,  until such time as such registration is
    39  filed, bar an owner from applying for or collecting any rent  in  excess
    40  of  the legal regulated rent in effect on the date of the last preceding
    41  registration statement or if no such statements  have  been  filed,  the
    42  legal  regulated  rent  in  effect on the date that the housing accommo-
    43  dation became subject to the registration requirements of this  section.
    44  The filing of a late registration shall result in the prospective elimi-
    45  nation  of such sanctions and provided that increases in the legal regu-
    46  lated rent were lawful except for the failure to file a timely registra-
    47  tion, the owner, upon the service and filing  of  a  late  registration,
    48  shall  not be found to have collected an overcharge at any time prior to
    49  the filing of the late registration. [If such late registration is filed
    50  subsequent to the filing of an overcharge complaint, the owner shall  be
    51  assessed a late filing surcharge for each late registration in an amount
    52  equal to fifty percent of the timely rent registration fee.] In addition
    53  to  all other requirements set forth in this subdivision, in the event a
    54  timely rent registration is not filed and after notice  of  such  delin-
    55  quency  is  provided by the division of housing and community renewal to
    56  the owner in the form of electronic mail and mail to the address  listed

        A. 6216--B                          7
 
     1  in  the  owner's  most recent registration statement, the owner shall be
     2  subject to a fine of five hundred dollars per unregistered unit for each
     3  month the registration is delinquent. Such a fine shall  be  imposed  by
     4  order,  and  such order imposing a fine shall be deemed a final determi-
     5  nation for the purposes of judicial review.  Such  fine  may,  upon  the
     6  expiration  of  the period for seeking review pursuant to article seven-
     7  ty-eight of the civil practice law and rules, be docketed  and  enforced
     8  in  the  manner  of  a  judgment of the supreme court by the division of
     9  housing and community renewal.
    10    § 3. Subdivision 1 of section 14 of the public housing law is  amended
    11  by adding a new paragraph (x) to read as follows:
    12    (x)  enforce  the emergency tenant protection act of nineteen seventy-
    13  four, the emergency housing rent control law, the local emergency  hous-
    14  ing  rent control act, the rent stabilization law of nineteen sixty-nine
    15  and any regulations, rules and policies  enacted  pursuant  thereto,  in
    16  addition to any other laws, rules or regulations related to housing that
    17  is financed, administered, overseen or otherwise regulated by the agency
    18  or  its  related  entities which constitute component parts of the divi-
    19  sion; such enforcement authority shall include, but not be  limited  to,
    20  all  of  the powers granted by the other provisions of this subdivision,
    21  the statutes, rules,  regulations  and  other  documents  governing  the
    22  administration  of  housing  by the division, and, where applicable, the
    23  power to issue orders.
    24    § 4. This act shall take effect immediately, provided that the  amend-
    25  ments  to  section 26-517 of chapter 4 of title 26 of the administrative
    26  code of the city of New York made by  section  one  of  this  act  shall
    27  expire  on  the  same  date as such law expires and shall not affect the
    28  expiration of such law as provided under section 26-520 of such law.
    29    § 2. Severability. If any clause, sentence, paragraph, section or part
    30  of this act shall be adjudged by any court of competent jurisdiction  to
    31  be  invalid  and  after  exhaustion  of all further judicial review, the
    32  judgment shall not affect, impair, or invalidate the remainder  thereof,
    33  but  shall  be  confined in its operation to the clause, sentence, para-
    34  graph, section or part of this act directly involved in the  controversy
    35  in which the judgment shall have been rendered.
    36    §  3.  This  act shall take effect immediately provided, however, that
    37  the applicable effective date of Parts A through C of this act shall  be
    38  as specifically set forth in the last section of such Parts.
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