What's happening
This bill prohibits landlords from leasing rent-regulated apartments to businesses or entities unless certain conditions for primary residence are met.
Why it matters
Closes loopholes that allowed businesses and non-individuals to rent regulated apartments. , helping to ensure that scarce rent-regulated housing is used for actual residential purposes rather than commercial or investment interests.
Makes exceptions for non-profit organizations that provide housing and support services to vulnerable populations. , allowing them to continue helping low-income or at-risk individuals access affordable housing.
Allows business tenancies only when an actual person (such as an employee or officer) uses the unit as their primary residence. , preventing companies from using regulated apartments as perks or pieds-à-terre for non-residents.
Imposes financial penalties for violations. , increasing accountability for landlords and agents who attempt to bypass these tenant protections, thus deterring misuse of the rent-regulated housing system.
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Who cares
Headline styles
Ban Corporate Apartment Leases
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
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 Rentals
In Assembly Committee · Housing · Sponsor Linda Rosenthal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3186
2017-2018 Regular Sessions
IN SENATE
January 20, 2017
Introduced by Sens. KRUEGER, HAMILTON, HOYLMAN, MONTGOMERY, PERKINS, SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
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
S. 3186 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.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
To require that the primary resident of a rent-regulated unit be a natural person.
Summary of specific provisions
Section 1 amends the Emergency Tenant Protection Act of 1974, adding a new section 5-b, requiring that a Rent Stabilized unit be occupied as a primary residence by a natural person. If the tenant is a corporate or other entity, the occupant must be a natural person who is a current or retired employee of the entity.
Section 2 amends the Emergency Tenant Protection Act of 1974 § 12 (a) (3) (i), authorizing the commissioner to impose civil penalties on Parties that violate section 1 of this act.
Section 3 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 4 amends the Administrative Code of the City of New York 26-516 Subdivision g authorizing the commissioner to impose civil penalties on parties that violate section 3 of this act.
Section 5 is a severability clause Section 6 is the effective date
Justification
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 hotel rooms. This bill would require that rent regulated apartments be used for residential purposes.
The purpose of rent regulation is to protect the stock of affordable housing for permanent residential purposes. The practices this bill would end undermine the affordable housing market. Current law allows a landlord to evict a tenant from a rent-regulated apartment if it is not the tenant's primary residence. But a landlord is currently not barred from renting a rent-regulated apartment for non-primary residence.
Prior legislative history
2015-2016: S2829A 2013-2014: S1774 2011-2012: S.406 2010: S.8283/A.9832-B The provisions of this bill were part of A.6013 of 2009.
Fiscal implications
None.
Effective date
This act shall take effect after sixty days.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.