What's happening
This bill prohibits leasing rent-regulated apartments to businesses or entities unless used to house low-income or vulnerable individuals.
Why it matters
Closes loopholes that allow businesses or organizations to rent out regulated apartments as pieds-à-terre or for non-residential purposes, helping keep these units available for people who need housing as their primary residence.
Makes exceptions only for legitimate not-for-profit organizations providing housing and support to low-income or vulnerable populations, or for companies renting for employees who will actually live in the unit as their main home. This targets abuse while preserving flexibility for social services and genuine residential use.
Introduces real financial penalties ($1,000–$3,000 per offense) for landlords who violate these rules, increasing accountability and acting as a deterrent to illegal or improper leasing practices.
Reinforces rent regulation protections by ensuring that regulated apartments do not get siphoned off for commercial or institutional use, thereby supporting the long-term stability and purpose of the rent regulation system.
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Ban Corporate Apartment Rentals
Plain English, a few words. Used as the page title.
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History
- Referred to housing
- Referred to housing
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Corporate Apartment Leases
In Senate Committee · Housing, Construction And Community Development · Sponsor Liz Krueger
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4803
2017-2018 Regular Sessions
IN ASSEMBLY
February 3, 2017
Introduced by M. of A. ROSENTHAL -- read once and referred to the Committee on Housing
AN ACT to amend the emergency tenant protection act of nineteen seventy-four and the administrative code of the city of New York, in relation to leasing to business and other entities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 4 of chapter 576 of the laws of 1974 constituting the emergency tenant protection act of nineteen seventy-four is amended by adding a new section 5-b to read as follows:
§ 5-b. Tenancy. Notwithstanding any inconsistent provision of this act or the provisions of any contract, lease or rental agreement, no owner or any agent thereof shall enter into a lease, or other rental agreement for occupancy of a vacant housing accommodation subject to this act if the owner or any agent thereof has reason to know that the tenant will not occupy the housing accommodation as his or her primary residence, or the tenant is a corporation, partnership, or other business or not-forprofit entity, provided, however, if the tenant (i) is a not-for-profit corporation, pursuant to the not-for-profit corporation law, that is solely engaged in activities to provide housing and additional support services, if any, to low-income or vulnerable members of the population, as determined by the commissioner of the division of housing and community renewal, or (ii) is a corporation, partnership or other business that is providing an officer, partner, employee or other natural person participating in the day-to-day operations with a dwelling unit, which shall be occupied as the individual's primary residence, an owner or agent thereof may enter into a lease, or other rental agreement for occupancy of a vacant housing accommodation subject to this act.
§ 2. Clause (i) of paragraph 3 of subdivision a of section 12 of section 4 of chapter 576 of the laws of 1974 constituting the emergency tenant protection act of nineteen seventy-four, as amended by section 27
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05268-01-7
A. 4803 2
of part A of chapter 20 of the laws of 2015, is amended to read as follows:
(i) to have violated an order of the division or section five-b of this act the commissioner may impose by administrative order after hearing, a civil penalty at minimum in the amount of one thousand but not to exceed two thousand dollars for the first such offense, and at minimum in the amount of two thousand but not to exceed three thousand dollars for each subsequent offense; or
§ 3. Section 26-512 of the administrative code of the city of New York is amended by adding a new subdivision g to read as follows:
g. Notwithstanding any inconsistent provision of law or the provisions of any contract, lease or rental agreement, no owner or any agent thereof shall enter into a lease, or other rental agreement for occupancy of a vacant housing accommodation subject to this chapter if the owner or any agent thereof has reason to know that the tenant will not occupy the housing accommodation as his or her primary residence, or the tenant is a corporation, partnership, or other business or not-for-profit entity, provided, however, if the tenant (i) is a not-for-profit corporation, pursuant to the not-for-profit corporation law, that is solely engaged in activities to provide housing and additional support services, if any, to low-income or vulnerable members of the population, as determined by the commissioner of the division of housing and community renewal, or (ii) is a corporation, partnership or other business that is providing an officer, partner, employee or other natural person participating in the day-to-day operations with a dwelling unit, which shall be occupied as the individual's primary residence, an owner or agent thereof may enter into a lease, or other rental agreement for occupancy of a vacant housing accommodation subject to this chapter.
§ 4. Paragraph 1 of subdivision c of section 26-516 of the administrative code of the city of New York, as amended by section 23 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
(1) to have violated an order of the division or subdivision g of section 26-512 of this chapter the commissioner may impose by administrative order after hearing, a civil penalty at minimum in the amount of one thousand but not to exceed two thousand dollars for the first such offense, and at a minimum in the amount of two thousand but not to exceed three thousand dollars for each subsequent offense; or
§ 5. Severability. If any provision of this act, or any application of any provision of this act, is held to be invalid, that shall not affect the validity or effectiveness of any other provision of this act, any other application of any provision of this act, or any other provision of any law or code amended by this act.
§ 6. This act shall take effect on the sixtieth day after it shall have become a law; provided that:
(a) the amendments to the emergency tenant protection act of nineteen seventy-four made by sections one and two of this act shall expire on the same date as such act expires and shall not affect the expiration of such act as provided in section 17 of chapter 576 of the laws of 1974; and
(b) the amendments to sections 26-512 and 26-516 of the administrative code of the city of New York made by sections three and four of this act shall expire on the same date as such sections expire and shall not affect the expiration of such sections as provided in section 26-520 of such code.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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