What's happening
This bill requires developers in New York City to set up escrow accounts to cover damages to neighbors from construction and protects property owners from penalties for damage caused by nearby projects.
Why it matters
Creates strong financial protections for neighbors. By requiring developers to deposit 10% of the project’s estimated cost into an escrow account before construction begins, the bill ensures funds are available upfront to cover potential damage or displacement of nearby property owners and tenants.
Holds developers strictly liable for construction-related harm. The legislation makes developers fully responsible for any damages or relocation expenses caused by their construction activities, strengthening accountability and reducing legal ambiguity for affected neighbors.
Pauses construction until harm is repaired. If any damage is caused to adjacent properties, all construction work must stop until repairs are completed, incentivizing developers to prevent harm and quickly address any issues that arise.
Provides a clear, expedited claims process. The bill requires the city to establish a process to resolve claims from affected neighbors within 60 days, ensuring timely compensation and reducing prolonged uncertainty for those impacted by construction.
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Who cares
Headline styles
Developers Pay for Construction Damage
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to cities
- Referred to cities
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1894
2017-2018 Regular Sessions
IN ASSEMBLY
January 13, 2017
Introduced by M. of A. LENTOL, COLTON, ROSENTHAL -- Multi-Sponsored by -- M. of A. AUBRY, COOK, DINOWITZ, GLICK, HIKIND, PERRY -- read once and referred to the Committee on Cities
AN ACT to amend the administrative code of the city of New York, in relation to establishing escrow accounts to protect neighboring landowners and tenants from damage due to construction
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The administrative code of the city of New York is amended by adding a new section 28-103.26 to read as follows:
§ 28-103.26 Developers' escrow accounts. 1. Any developer who plans to construct any building within the city shall, prior to the commencement of any construction, deposit ten percent of the total estimated project cost into an escrow account.
2. An escrow account established pursuant to subdivision one of this section shall be used to settle claims of property owners whose property is damaged during any construction, or the claims of tenants who are displaced from their residence as the result of damage to the property from the construction. A developer shall be held strictly liable for any damage or relocation expense that occurs as a result of the construction.
3. In addition to the requirements imposed by subdivision one of this section, if any damages occur to an adjoining property, any and all work on such project shall be stopped until such damaged property is repaired.
4. The department shall establish a claim procedure for property owners and tenants who wish to file claims against the money set aside pursuant to this section. Such procedure shall provide for a complete resolution of a claim within sixty days from the date of its commencement.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03302-01-7
A. 1894 2
5. Any funds in the account that are not claimed by an aggrieved property owner or tenant within six months after the completion of the project shall be returned to the developer.
§ 2. The administrative code of the city of New York is amended by adding a new section 28-201.5 to read as follows:
§ 28-201.5 Violations not caused by property owner. The department shall not impose any fine or other penalty against any property owner for any violation of the provisions of this title that occur as the result of damage caused by construction on an adjacent building.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.