Makes technical corrections to provisions of the multiple dwelling law relating to time to obtain certificates of occupancy

Summary of provisions

Section 1 of the bill would amend § 67(16)(c) of the Multiple Dwelling Law (MDL), as added by Chapter 225 of the Laws of 2010, to provide that if an applicant cannot obtain a certificate of occupancy within the two-year deadline provided for in Chapter 225 of the Laws of 2010 due to circumstances beyond the applicant's control, the board the applicant may be granted one additional extension of time of fifteen months in which to obtain a certificate of occupancy, if there is no building or fire code violation at the property.

Section 2 of the bill would amend MDL § 120(3), as added by Chapter 225 of the Laws of 2010, to provide for the same additional extension of time for owners of multiple dwellings constructed prior to December 15, 1961 that meet certain occupancy and fire and safety requirements, where the owner cannot obtain a certificate of occupancy within the statutory two year deadline for reasons beyond the applicant's control, provided that there is no building or fire code violation on the property.

Section 3 of the bill would amend Section 8 of Chapter 225 of the Laws of 2010, by changing the effective date to May 1, 2011, with the proviso that, prior to such effective date, an agency with the duty to enforce the provisions of the zoning law may promulgate rules or take administrative action to provide for the registration of dwelling units in accordance with Sections 1 and 2 of the bill.

Section 4 of the bill provides that this bill shall take effect immediately, provided that sections one and two of the bill shall take effect on the same date and in the same manner as Chapter 225 of the Laws of 2010.

Existing law

Currently, Chapter 225 of the Laws of 2010 became effective on the date it was signed into law, July 23, 2010.

Currently, both § 67(16)(c) of the Multiple Dwelling Law (MDL), as added by Chapter 225 of the Laws of 2010, and MDL Article 4, Title 3,

§ 120(3), authorized up to two additional discretionary extensions of one year each for applicants who, due to reasons beyond their control, cannot obtain a certificate of occupancy prior to the two-year deadline for doing so. This bill reduces the number of authorized additional extensions to a single fifteen month extension.

Statement in support

Chapter 225 of the Laws of 2010 amended the Multiple Dwelling Law and New York City Administrative Code to restrict, with certain narrow exceptions, the use of "Class A" dwellings to "permanent residence purposes." The purpose of the legislation was to address a significant problem in New York City: the use of residential property intended for permanent dwelling as "illegal hotels" or for other transient uses. Such uses can pose fire hazards, harass tenants, remove affordable housing from the market and create unfair competition for law abiding hotels,

However, the sweeping language and immediate effective date of Chapter 225 brought within its ambit actions by building owners who may previously have had a good faith basis to believe their uses were legal prior to its passage. As a result, landowners or community organizations that invested significant funds into a building to promote certain uses that were legal on the day prior to passage, could find the same uses illegal the day after, and overnight find themselves holding property structured for a purpose that is no longer permissible.

The chapter amendment embodied in this bill would prevent this inequity by delaying the effective date of Chapter 225 until May 1, 2011. This would allow property holders, business owners and not-for-profit corporations additional time to come into compliance with Chapter 225, or to dispose of the properties at issue so that they may find alternate sites for their current uses.

Because the extension of the effective date of Chapter 225 already grants building owners additional time in which to adjust to this bill, the two one-year discretionary extensions of title for applicants who fail to obtain a certificate of occupancy within the statutory deadline is now more generous than necessary. Accordingly, the bill reduces that discretionary extension to a single extension of fifteen months.

Budget implications

None.

Effective date

This bill will take effect immediately, provided that sections one and two of the bill will take effect on the same date and in the same manner as Chapter 225 of the laws of 2010.