Relates to vacancies and illegal use and occupancy with regard to cooperative or condominium conversion plans

Section 2 amends General Business Law § 352-eeee (4), to add that if a landlord permits illegal use or occupancy in the building, the attorney general may block the co-op/condo conversion.

Section 3 amends the Emergency Tenant Protection Act of 1974, adding a new section 5-b, requiring that a Rent-Stabilized unit that is leased by a corporation be occupied as a primary residence by a natural person who is a current or retired employee of the corporation.

Section 4 amends the Emergency Tenant Protection Act of 1974 § 12 (a) (3) (i), authorizing the commissioner to impose civil penalties on parties that violate section 3 of this act.

Section 5 amends the Administrative Code of the City of New York § 26-512, adding a new subdivision g, prohibiting a landlord from knowingly renting a rent-regulated unit to a person or entity that is not using the accommodation as a primary residence.

Section 6 amends the Administrative Code of the City of New York g 26-516 (c) (1), authorizing the commissioner to impose civil penalties on parties that violate section 5 of this act.

Section 7 amends the Emergency Tenant Protection Act of 1974 § 12, adding a new Paragraph 9, authorizing the New York City Department of Housing Preservation and Development to enforce portions of the Rent Stabilization law under an agreement with the State Division of Housing and Community Renewal.

Section 8 amends the Emergency Rent Control Laws of 1946S 6 (I), adding a new paragraph a authorizing the New York City Department of Housing Preservation and Development to enforce portions of the Rent Control law under an agreement with the State Division of Housing and Community Renewal.

Section 9 amends the New York City Charter § 1802, adding a new subdivision 7, authorizing the New York City Department of Housing Preservation and Development to enter into an agreement with the State

Division of Housing and Community Renewal to enforce Rent Control and Rent Stabilization.

Justification

Landlords who are converting rental properties into co-ops and condos often begin evicting tenants and letting apartments stay vacant as soon as the conversion prospectus is filed with the attorney general, in order to increase the value of the shares or units they intend to sell on the open market. This bill would reduce the incentive and ability to warehouse units while the attorney general reviews the proposed offering statement.

In many cases, landlords allow unlawful use of their properties - such as illegal hotels - in connection with an effort to convert their properties to co-ops or condos. They do this to harass tenants to move out or purchase, or to make more money even when apartments are no longer occupied by residential tenants. This practice harms tenants, and would be prohibited by this legislation.

There is a growing problem of landlords renting apartments to companies that in turn rent them out to transients (tourists, short-stay occupants) as illegal hotels. This bill would require that rent-regulated apartments be used for residential purposes.

The New York State Division of Housing and Community Renewal lacks the resources to effectively enforce many provisions of the rent laws and regulations in New York City. This bill would authorize the City of New York to enforce these provisions if the City and DHCR agree.

Fiscal implications

None.

Effective date

Sections 3, 4, 5, and 6 shall take effect after sixty days. All other provisions shall take effect immediately.