What's happening
This bill requires developers in New York City to establish escrow accounts to cover damages to neighboring properties and tenants caused by construction.
Why it matters
Shifts financial responsibility directly onto developers. by requiring them to deposit 10% of a project’s estimated costs in advance, ensuring that money is available to cover damages or displacement costs for neighbors and tenants affected by construction.
Establishes strict liability for developers. , meaning they are automatically responsible for any damage or relocation expenses resulting from their construction, regardless of intent or negligence—this could lead to more careful planning and execution.
Mandates immediate work stoppage if damage occurs. to neighboring properties until repairs are made, offering stronger protection and leverage for those impacted, but potentially causing cost overruns and delays for developers.
Creates a clear and expedited claims process. , requiring resolution within 60 days, and ensures unused escrow funds are returned to the developer six months after project completion, balancing accountability with fairness.
Protects property owners from unjust penalties. by preventing the city from fining owners for violations caused by neighboring construction, addressing a common source of frustration and financial hardship for those not at fault.
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Who cares
New York City developers
They would have to escrow 10 percent of estimated project costs before construction, face strict liability for construction-related damage and relocation expenses, and stop all project work until damage to adjoining property is repaired.
Neighboring property owners
They could seek payment from the escrow for construction damage and would be protected from city fines or penalties for violations resulting from construction damage caused by an adjacent building project.
Tenants displaced by construction damage
They could file escrow claims for relocation expenses through a process requiring complete resolution within 60 days.
New York City Department of Buildings
It would have to establish the escrow claims procedure and withhold fines or other penalties against owners for violations caused by adjacent construction damage.
Headline styles
Protect Neighbors From Construction Damage
Plain English, a few words. Used as the page title.
Sponsors
3 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
1659
2019-2020 Regular Sessions
IN ASSEMBLY
January 16, 2019
Introduced by M. of A. LENTOL, COLTON, L. ROSENTHAL -- Multi-Sponsored by -- M. of A. AUBRY, COOK, DINOWITZ, GLICK, 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 28-103.32 to read as follows:
§ 28-103.32 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.
LBD04432-01-9
A. 1659 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.