Provides additional oversight for interim multiple dwellings; provides for additional remedies for residents of such dwellings and extends certain provisions

- extend the expiration date of the Loft Law to May 31, 2014;

- allow fines imposed by the Loft Board to be enforced as money judgements by a court;

- allow a single residential tenant of an interim multiple dwelling to bring a specific performance action against an owner without a prior finding by the Loft Board;

- provide that in any loft building where the owner has failed to achieve compliance with the timetable any residential tenant of the building may maintain a special proceeding pursuant to Article 7-a of the Real Property Actions and Proceedings Law for the purpose of undertaking work to achieve compliance;

- allow both the State of New York Mortgage Agency (SONYMA) and the New York City Residential Mortgage Insurance Corporation (REMIC) to insure mortgages made for the purpose of achieving compliance with Article 7-C of the Multiple Dwelling Law;

- require that owners of interim multiple dwellings offer leases upon Loft Board approval of compliance that reflect the existing rights of occupants, including those related to use and services, as they existed prior to approval, provided that they do not violate the certificate of occupancy of the building or any provision of law; and

- prohibits an owner of a building containing rent regulated units which were previously interim multiple dwellings from recovering possession of any such unit for his or her personal use and occupancy or family's use and occupancy where a member of the household has resided in the building for 20 years or more.

Justification

Article 7-C of the Multiple Dwelling Law is presently set to expire on May 31, 2010. As the process of legalization of interim multiple dwellings is more than one-third completed, a six-year extension of the sunset is required in order to provide for the legalization of the remaining interim multiple dwellings covered by the statute.

The amendment to §284(1) (v) would allow fewer than three tenants living in separate units to join to bring a specific performance action against owners who have failed to meet the compliance timetable. Presently, the law requires three tenants to join in such an action, even in buildings with fewer than three units.

Although some courts have been willing to consider loft tenants' Article 7-A applications, the law is unclear as to whether loft tenants are eligible for this important protection. It is also not clear whether loft legalization work would be an eligible activity for a 7-A administrator to undertake. This amendment is intended to clarify loft tenants' rights under the Real Property Actions and Proceedings Law.

One of the most persistent dilemmas facing both owners and tenants of buildings covered by the Loft Law is the lack of financing to facilitate legalization. By expanding the SONYMA and REMIC mortgage insurance programs, owners of building should be able to access financing more readily, thus moving more buildings toward legalization.

Each of these provisions are important in maintaining a source of residential housing in New York City that contributes both to its diversity and economic productivity.

Prior legislative history

2004: Passed Assembly; Referred to Housing, Construction and Community Development in the Senate. 2005: Passed Assembly; Referred to Housing, Construction and Community Development in the Senate. 2006: A.2942-A Passed Assembly; Referred to Housing, Construction and Community Development in the Senate. 2007-2008: A.2816 Passed Assembly.

Fiscal implications

This bill assumes the continued operation of the Loft Board, which is funded by the City of New York. In addition, the legislation expands the scope of the SONYMA and REMIC mortgage insurance programs.

Effective date

This act would take effect immediately. The provisions of this act and all regulations, orders and requirements thereunder shall terminate at the close of the calendar day May 31, 2014.