What's happening
This bill prevents landlords from avoiding penalties for willful rent overcharges by simply adjusting rent or refunding tenants after a complaint is filed.
Why it matters
Closes a legal loophole. By specifying that rent adjustments or refunds made after a tenant files a complaint cannot be used as evidence that a landlord’s overcharge was unintentional, the bill prevents landlords from retroactively escaping harsher penalties for willful violations.
Strengthens tenant protections. Tenants who experience rent overcharges will have more assurance that landlords cannot simply “fix” the problem after getting caught to avoid the threefold (treble) damages penalty, increasing deterrence against deliberate overcharging.
Shifts burden of proof. Landlords must now provide substantive evidence that an overcharge was not willful, beyond just adjusting rent or refunding money after a complaint, making it harder to avoid accountability for illegal rent increases.
Promotes fair housing enforcement. By ensuring that penalties for willful overcharges are consistently applied, the bill aims to support the integrity of rent regulation and the effectiveness of the State Division of Housing and Community Renewal in enforcing tenant rights.
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Who cares
Rent-regulated tenants
The bill would bar using a landlord’s rent adjustment or refund after service of an overcharge complaint as a basis for finding the overcharge was not willful, affecting claims for triple damages.
Owners of rent-regulated housing
Owners would need evidence other than a rent adjustment or refund made after service of a complaint to establish that an overcharge was not willful.
State Division of Housing and Community Renewal
The agency would have to apply this restriction when deciding willfulness in overcharge cases under New York City’s rent stabilization law and the Emergency Tenant Protection Act.
Headline styles
Tougher Penalties for Rent Overcharges
Plain English, a few words. Used as the page title.
Sponsors
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.
Tighten Rent Overcharge Rules
In Senate Committee · Housing, Construction And Community Development · Sponsor Robert Jackson
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7737
2019-2020 Regular Sessions
IN ASSEMBLY
May 17, 2019
Introduced by M. of A. EPSTEIN, MOSLEY -- read once and referred to the Committee on Housing
AN ACT to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to the determination of whether an overcharge of rent is willful
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of subdivision a of section 26-516 of the administrative code of the city of New York, as amended by chapter 116 of the laws of 1997, is amended to read as follows:
Subject to the conditions and limitations of this subdivision, any owner of housing accommodations who, upon complaint of a tenant, or of the state division of housing and community renewal, is found by the state division of housing and community renewal, after a reasonable opportunity to be heard, to have collected an overcharge above the rent authorized for a housing accommodation subject to this chapter shall be liable to the tenant for a penalty equal to three times the amount of such overcharge. In no event shall such treble damage penalty be assessed against an owner based solely on said owner's failure to file a timely or proper initial or annual rent registration statement. If the owner establishes by a preponderance of the evidence that the overcharge was not willful, the state division of housing and community renewal shall establish the penalty as the amount of the overcharge plus interest. Neither the adjustment of the rent or a refund by an owner after the service of an overcharge complaint shall be a basis upon which the state division of housing and community renewal may determine that the overcharge was not willful. (i) Except as to complaints filed pursuant to clause (ii) of this paragraph, the legal regulated rent for purposes of determining an overcharge, shall be the rent indicated in the annual registration statement filed four years prior to the most recent registration statement, (or, if more recently filed, the initial registration
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11538-01-9
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statement) plus in each case any subsequent lawful increases and adjustments. Where the amount of rent set forth in the annual rent registration statement filed four years prior to the most recent registration statement is not challenged within four years of its filing, neither such rent nor service of any registration shall be subject to challenge at any time thereafter. (ii) As to complaints filed within ninety days of the initial registration of a housing accommodation, the legal regulated rent shall be deemed to be the rent charged on the date four years prior to the date of the initial registration of the housing accommodation (or, if the housing accommodation was subject to this chapter for less than four years, the initial legal regulated rent) plus in each case, any lawful increases and adjustments. Where the rent charged on the date four years prior to the date of the initial registration of the accommodation cannot be established, such rent shall be established by the division.
§ 2. The opening paragraph of paragraph 1 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 chapter 116 of the laws of 1997, is amended to read as follows:
Subject to the conditions and limitations of this paragraph, any owner of housing accommodations in a city having a population of less than one million or a town or village as to which an emergency has been declared pursuant to section three, who, upon complaint of a tenant or of the state division of housing and community renewal, is found by the state division of housing and community renewal, after a reasonable opportunity to be heard, to have collected an overcharge above the rent authorized for a housing accommodation subject to this act shall be liable to the tenant for a penalty equal to three times the amount of such overcharge. In no event shall such treble damage penalty be assessed against an owner based solely on said owner's failure to file a proper or timely initial or annual rent registration statement. If the owner establishes by a preponderance of the evidence that the overcharge was neither willful nor attributable to his negligence, the state division of housing and community renewal shall establish the penalty as the amount of the overcharge plus interest at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules. Neither the adjustment of the rent or a refund by an owner after the service of an overcharge complaint shall be a basis upon which the state division of housing and community renewal may determine that the overcharge was not willful. (i) Except as to complaints filed pursuant to clause (ii) of this paragraph, the legal regulated rent for purposes of determining an overcharge, shall be deemed to be the rent indicated in the annual registration statement filed four years prior to the most recent registration statement, (or, if more recently filed, the initial registration statement) plus in each case any subsequent lawful increases and adjustments. Where the amount of rent set forth in the annual rent registration statement filed four years prior to the most recent registration statement is not challenged within four years of its filing, neither such rent nor service of any registration shall be subject to challenge at any time thereafter. (ii) As to complaints filed within ninety days of the initial registration of a housing accommodation, the legal regulated rent for purposes of determining an overcharge shall be deemed to be the rent charged on the date four years prior to the date of the initial registration of the housing accommodation (or, if the housing accommodation was subject to this act for less than four years, the initial legal regulated rent) plus in each
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case, any lawful increases and adjustments. Where the rent charged on the date four years prior to the date of the initial registration of the accommodation cannot be established, such rent shall be established by the division. Where the amount of rent set forth in the annual rent registration statement filed four years prior to the most recent registration statement is not challenged within four years of its filing, neither such rent nor service of any registration shall be subject to challenge at any time thereafter.
§ 3. This act shall take effect immediately; provided that the amendments to section 26-516 of chapter 4 of title 26 of the administrative code of the city of New York made by section one of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law; and provided that the amendments to section 12 of section 4 of the emergency tenant protection act of nineteen seventy-four made by section 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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