Source: https://www.nysenate.gov/legislation/bills/2017/S3373
Timestamp: 2019-04-23 10:11:37
Document Index: 52711642

Matched Legal Cases: ['Art 28', '§1233', '§ 1233', '§ 1234', '§ 1235', '§ 1236', '§  1237', '§ 1238']

Creates the New York City department of housing preservation and development homeowners improvement trust fund and the HPD homeowner standard warranty
Jun 18, 2018 referred to housing
ordered to third reading cal.1824
Add Art 28 §§1233 - 1238, Priv Hous Fin L
2013-2014: S7865
2015-2016: S3153
2019-2020: S1469
Creates the New York City department of housing preservation and development homeowners improvement trust fund and the HPD homeowner standard warranty.
BILL NUMBER:  S3373            Revised 4/3/17
relation to creating the New York City department of housing
preservation and development homeowners improvement trust fund and the
HPD homeowner standard warranty
To create a fund to cover warranty expenses of homes sold by the New
York City Department of Housing Preservation and Development ("HPD").
New Article XXVIII is added to the Private Housing Law. Section 1233
sets forth the definitions of the new article. Section 1234
establishes the New York City Department of Housing Preservation and
Development Homeowners Improvement Trust Fund (the "Fund"). Each
sponsor of an HPD project shall be required to contribute to the Fund
by submitting not less than 5% of the total value of the project into
Moneys shall submitted into the Fund to cover future warranty claims
related to the HPD project. In the event that no warranty issues are
outstanding, 50% of the funds submitted by the sponsor shall be
returned thirty months after completion of the project. In the event
that no warranty issues are outstanding, the remaining 50% of the
funds submitted by the sponsor shall be returned sixty months after
Section 1235 establishes the warranty to be provided by the HPD
sponsor's project.
Section 1236 sets forth the powers and duties of the Commissioner
relating to HPD projects.
Section 1237 sets forth the process for dispute resolution of relating
to defects and warranties of HPD projects.
Section 1238 sets for the penalties for violating Article XXVIII.
("HPD") is a New York City Mayoral agency responsible for the
development and preservation of affordable housing. HPD facilitates
the expansion and preservation of the City's affordable housing stock.
The agency finances affordable housing through the administration of
City Capital funds, federal HOME Investment Partnership funds, tax
credits and abatements and the subsidized disposition of City-owned
land. HPD solicits private development partners through Request for
Proposals and Requests for Qualifications. Additionally, HPD
advertises available housing units to the public and administers
housing lotteries; this practice results in the public often
mistakenly believing they are purchasing a home from the City, not
entering into contracts with private developers.
HPD's development process is subjected to limited oversight compared
to other City agencies, which are subject sealed, competitive bidding
processes. This lack of oversight has resulted into corruption in the
procurement process and unscrupulous contractors repeatedly awarded
affordable housing construction projects. The end result is shoddy
construction, the repairs for which then become additional burdens to
the homeowners, whom already have financial limitations which
qualified them for the housing in the first place. Independent
inspectors have found serious construction defects, including cracked
foundations, leaking roofs, improper electrical wiring, unfinished or
mislaid plumbing, lack of insulation and inadequate heating,
improperly installed windows, the wrong sized pipes, and poor to
subpar building materials. HPD has no method of recourse in place for
the homeowners, and in fact occasionally applies for additional public
funds to address the needed repairs. Under the administration of Mayor
Bloomberg, 160,000 units of affordable housing were created and
preserved through both new construction and renovation. Mayor De
Blasio is proposing another 200,000 units of housing.
This bill would require all developers who participate in the
HPD-sponsored projects to make a deposit equal to five percent (5%) of
the value of the project to cover any future potential warranty
issues. In the event that no outstanding warranty issues exist, after
thirty (30) months half of the deposit will be returned to the
developer. After sixty (60) months, if no outstanding warranty issues
exist, the remaining deposit shall be returned.
This bill will protect future homeowners. It will work as both a
preventative measure, incentivizing the developers to construct a
higher quality product in order to get their money out of escrow, and
provide an avenue for affordable, timely repairs for homeowners.
02/03/2015 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
01/06/2016 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
the  New  York City department of housing preservation and development
homeowners improvement trust  fund  and  the  HPD  homeowner  standard
NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION AND
DEVELOPMENT HOMEOWNERS IMPROVEMENT TRUST FUND
SECTION 1233. DEFINITIONS.
1234. NEW  YORK  CITY  DEPARTMENT  OF  HOUSING  PRESERVATION AND
DEVELOPMENT HOMEOWNERS IMPROVEMENT TRUST FUND.
1235. WRITTEN WARRANTY; CONTENTS.
1236. POWERS OF THE COMMISSIONER.
1237. RESOLUTION OF DISPUTES REGARDING HPD PROJECTS.
1238. PENALTIES FOR VIOLATION OF THIS ARTICLE.
§ 1233. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE  THE  FOLLOWING
1.  "BUSINESS  ENTITY"  MEANS A CORPORATION, ASSOCIATION, PARTNERSHIP,
2. "DELIVERED CONDITION" MEANS THE  PHYSICAL  CONDITION  OF  THE  HOME
3.  "DEPARTMENT"  MEANS  THE  NEW YORK STATE COMMUNITY HOMES & RENEWAL
LBD01173-01-7
4. "FUND" MEANS THE NEW YORK CITY DEPARTMENT OF  HOUSING  PRESERVATION
AND  DEVELOPMENT  HOMEOWNERS  IMPROVEMENT TRUST FUND CREATED PURSUANT TO
THE PROVISIONS OF SECTION TWELVE HUNDRED THIRTY-FOUR OF THIS ARTICLE.
5.  "SPONSOR"  MEANS ANY PERSON OR BUSINESS ENTITY, INCLUDING, BUT NOT
LIMITED TO, A  SPONSOR,  DEVELOPER,  MORTGAGOR,  APPLICANT,  OR  GENERAL
CONTRACTOR AS DEFINED IN SECTION 1-16, 29-01, 30-01, 34-01, AND 35-01 OF
TITLE  TWENTY-EIGHT  OF THE RULES OF THE CITY OF NEW YORK WHO DEVELOPS A
HOME THROUGH AN HPD PROJECT FOR SALE TO A BUYER.
6. "HPD PROJECT" MEANS ANY CONSTRUCTION OF REHABILITATION OF ANY RESI-
DENTIAL DWELLING, IN WHOLE OR IN PART, THROUGH THE PROGRAMS SET FORTH IN
CHAPTERS TWENTY-NINE, THIRTY, THIRTY-FOUR AND THIRTY-FIVE OF TITLE TWEN-
TY-EIGHT OF THE RULES OF THE CITY OF NEW YORK.
7. "COMMISSIONER" MEANS THE COMMISSIONER OF THE NEW YORK STATE  COMMU-
NITY HOMES & RENEWAL.
8.  "SERVICE"  MEANS  THE  CONSTRUCTION, REHABILITATION, MODIFICATION,
ALTERATION, OR REPAIR OF AN HPD PROJECT.
9. "STATE ADMINISTRATIVE AGENCY" OR "SAA" MEANS  THE  NEW  YORK  STATE
COMMUNITY HOMES & RENEWAL.
10.  "BUILDING  CODE"  MEANS  THE UNIFORM FIRE PREVENTION AND BUILDING
CODE PROMULGATED UNDER SECTION THREE HUNDRED SEVENTY-SEVEN OF THE EXECU-
TIVE LAW, LOCAL BUILDING CODE STANDARDS APPROVED  BY  THE  UNIFORM  FIRE
PREVENTION  AND BUILDING CODE COUNCIL UNDER SECTION THREE HUNDRED SEVEN-
TY-NINE OF THE EXECUTIVE LAW, AND THE BUILDING CODE OF THE CITY  OF  NEW
YORK, AS DEFINED IN TITLE TWENTY-SEVEN OF THE ADMINISTRATIVE CODE OF THE
11.  "CONSTRUCTED  IN  A  SKILLFUL  MANNER" MEANS THAT WORKMANSHIP AND
MATERIALS MEET OR EXCEED THE SPECIFIC STANDARDS OF THE APPLICABLE BUILD-
ING CODE. WHEN THE APPLICABLE BUILDING CODE DOES NOT PROVIDE A  RELEVANT
SPECIFIC  STANDARD,  SUCH TERM MEANS THAT WORKMANSHIP AND MATERIALS MEET
OR EXCEED THE STANDARDS OF LOCALLY ACCEPTED BUILDING PRACTICES.
12. "MATERIAL DEFECT" MEANS ACTUAL PHYSICAL DAMAGE  TO  THE  FOLLOWING
LOAD-BEARING PORTIONS OF THE HOME CAUSED BY FAILURE OF SUCH LOAD-BEARING
PORTIONS  WHICH  AFFECTS THEIR LOAD-BEARING FUNCTIONS TO THE EXTENT THAT
THE HOME BECOMES UNSAFE, UNSANITARY OR OTHERWISE UNLIVEABLE:  FOUNDATION
SYSTEMS AND FOOTINGS, BEAMS, GIRDERS, LINTELS, COLUMNS, WALLS AND PARTI-
TIONS, FLOOR SYSTEMS, AND ROOF FRAMING SYSTEMS.
13.  "NEW  HOME"  OR  "HOME" MEANS ANY SINGLE FAMILY HOUSE OR FOR-SALE
UNIT IN A MULTI-UNIT RESIDENTIAL STRUCTURE CONSTRUCTED OR  REHABILITATED
THROUGH  AN HPD PROJECT IN WHICH TITLE TO THE INDIVIDUAL UNITS IS TRANS-
FERRED TO OWNERS UNDER A CONDOMINIUM, COOPERATIVE, OR INDIVIDUAL  OWNER-
SHIP  REGIME. SUCH TERMS DO NOT INCLUDE DWELLINGS CONSTRUCTED SOLELY FOR
14. "OWNER" MEANS THE FIRST PERSON TO  WHOM  THE  HOME  IS  SOLD  AND,
DURING  THE  UNEXPIRED PORTION OF THE WARRANTY PERIOD, EACH SUCCESSOR IN
TITLE TO THE HOME AND  ANY  MORTGAGEE  IN  POSSESSION.  OWNER  DOES  NOT
INCLUDE  THE BUILDER OF THE HOME OR ANY FIRM UNDER COMMON CONTROL OF THE
15. "PLUMBING, ELECTRICAL, HEATING, COOLING AND  VENTILATION  SYSTEMS"
A.  IN  THE  CASE  OF PLUMBING SYSTEMS: GAS SUPPLY LINES AND FITTINGS;
WATER SUPPLY, WASTE AND VENT PIPES AND THEIR FITTINGS; SEPTIC TANKS  AND
THEIR  DRAIN  FIELDS;  WATER,  GAS  AND  SEWER SERVICE PIPING, AND THEIR
EXTENSIONS TO THE TIE-IN OF A PUBLIC UTILITY CONNECTION, OR ON-SITE WELL
AND SEWAGE DISPOSAL SYSTEM;
S. 3373                             3
B. IN THE CASE OF ELECTRICAL SYSTEMS: ALL  WIRING,  ELECTRICAL  BOXES,
SWITCHES,  OUTLETS  AND CONNECTIONS UP TO THE PUBLIC UTILITY CONNECTION;
C.  IN  THE CASE OF HEATING, COOLING AND VENTILATION SYSTEMS: ALL DUCT
WORK, STEAM, WATER AND REFRIGERANT LINES, REGISTERS,  CONVECTORS,  RADI-
ATION ELEMENTS AND DAMPERS.
16.  "WARRANTY  DATE"  MEANS  THE  DATE OF THE PASSING OF TITLE TO THE
FIRST OWNER FOR OCCUPANCY BY SUCH OWNER OR  SUCH  OWNER'S  FAMILY  AS  A
RESIDENCE,  OR  THE  DATE OF FIRST OCCUPANCY OF THE HOME AS A RESIDENCE,
17. "HPD OWNER WARRANTY" MEANS THE WARRANTY REQUIRED TO BE PROVIDED TO
EACH OWNER OF A HOME.
§ 1234. NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION AND  DEVELOP-
MENT HOMEOWNERS IMPROVEMENT TRUST FUND. 1. A NEW YORK CITY DEPARTMENT OF
HOUSING  PRESERVATION  AND DEVELOPMENT HOMEOWNERS IMPROVEMENT TRUST FUND
(HEREINAFTER, "THE FUND") IS  HEREBY  ESTABLISHED  TO  PROVIDE  FOR  THE
PAYMENT  OF  APPROVED REPAIRS TO AGGRIEVED HOMEOWNERS WHO ARE VICTIMS OF
SUBSTANDARD HOUSING BUILT BY A SPONSOR ON AN HPD PROJECT. THE FUND SHALL
BE ADMINISTERED BY THE COMMISSIONER OF NEW YORK STATE COMMUNITY HOMES  &
2.  A. A SPONSOR OF AN HPD PROJECT SHALL BE REQUIRED TO PARTICIPATE IN
THE FUND UNLESS A SPONSOR PROVIDES A BOND OR OTHERWISE MEETS THE WARRAN-
TIES SET FORTH IN SECTION TWELVE HUNDRED THIRTY-FIVE OF THIS ARTICLE.
B. ANY SPONSOR WHO IS GRANTED OR RECEIVES THE RIGHT TO DEVELOP AN  HPD
PROJECT MUST PARTICIPATE IN THE FUND BY SUBMITTING TO THE COMMISSIONER A
CHECK  IN THE AMOUNT OF NOT LESS THAN FIVE PERCENT OF THE TOTAL VALUE OF
THE HPD PROJECT BEFORE AN HPD PROJECT MAY BE AWARDED TO A SPONSOR.
C. THE COMMISSIONER MAY, FROM TIME TO  TIME,  AMEND  THIS  SECTION  TO
REQUIRE SUCH ADDITIONAL CONTRIBUTIONS BY PARTICIPANTS IN THE FUND AS THE
COMMISSIONER  DETERMINES  TO  BE  NECESSARY TO MAINTAIN AN AMOUNT IN THE
FUND WHICH IS  ADEQUATE  TO  FULFILL  ITS  PURPOSES  AND  TO  COUNTERACT
DEPLETION  OF  THE  FUND  RESULTING  FROM  PAYMENTS MADE OUT OF THE FUND
D. FUND PARTICIPANTS MAY DISCONTINUE THEIR PARTICIPATION IN  THE  FUND
AT  ANY TIME BY FILING A BOND IN ACCORDANCE WITH REGULATIONS PROMULGATED
BY THE COMMISSIONER AND IN EFFECT.
E. THE FUNDS WILL BE RETURNED TO THE SPONSOR AS FOLLOWS:    (1)  FIFTY
PERCENT  RETURNED AFTER THIRTY MONTHS AFTER COMPLETION OF THE PROJECT SO
LONG AS THERE ARE NO UNRESOLVED WARRANTY ISSUES; AND (2)  FIFTY  PERCENT
RETURNED  AFTER  SIXTY MONTHS AFTER COMPLETION OF THE PROJECT SO LONG AS
THERE ARE NO UNRESOLVED WARRANTY ISSUES. UNDER  NO  CIRCUMSTANCES  SHALL
FUNDS  BE  RETURNED  IF  THERE  ARE  ANY OUTSTANDING UNRESOLVED WARRANTY
F. PARTICIPATION IN THE FUND DOES NOT RELIEVE A SPONSOR OF  ANY  OBLI-
GATION  TO PAY AWARDS OR FINES IMPOSED BY THE DEPARTMENT OR JUDGMENTS OR
ARBITRATION AWARDS RENDERED AGAINST A SPONSOR BY A  COURT  OF  COMPETENT
3. A. THE COMMISSIONER MAY REQUIRE THAT DISBURSEMENTS BE MADE FROM THE
FUND TO PAY OUTSTANDING AWARDS TO AN OWNER, ON BEHALF OF AN OWNER WHEN:
(1)  THE  DEPARTMENT  HAS  CONDUCTED  AN  ADMINISTRATIVE  HEARING THAT
RESULTS IN A DECISION THAT A SPONSOR IS IN VIOLATION OF A LAW, ORDINANCE
OR REGULATION ENFORCED BY THE DEPARTMENT OR THE HPD OWNER WARRANTY;
(2) THE SPONSOR IS ORDERED BY THE DEPARTMENT TO PAY  AN  AWARD  TO  AN
(3) THE SPONSOR HAS FAILED TO PAY SUCH AWARD TO AN OWNER WITHIN THIRTY
DAYS OF THE DATE OF THE DEPARTMENT'S ORDER; AND
S. 3373                             4
(4)  THE  SPONSOR HAS CONDUCTED AN ADMINISTRATIVE HEARING THAT RESULTS
IN A DECISION THAT A  SPONSOR  HAS  NOT  REMEDIED  MATERIAL  DEFECTS  IN
CONSTRUCTION  OR REHABILITATION OF AN HPD PROJECT AND IS IN VIOLATION OF
THE HPD OWNER WARRANTY.
B.  DISBURSEMENTS  FROM THE FUND WILL BE MADE AT THE DISCRETION OF THE
C. THE COMMISSIONER OR HIS OR HER  DESIGNEE  MAY  ORDER  THAT  PARTIAL
PAYMENT OF AWARDS BE MADE FROM THE FUND.
D. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO:
(1)  LIMIT THE RIGHTS AND REMEDIES OF ANY PARTY, INCLUDING THE DEPART-
MENT, TO PURSUE A CAUSE OF ACTION AGAINST A SPONSOR WHO IS A PARTICIPANT
(2) CREATE A RIGHT OF ANY PERSON TO A PORTION  OF  ANY  OF  THE  FUND,
EXCEPT IN THE CASE OF AN AWARD DULY MADE BY THE COMMISSIONER PURSUANT TO
THE PROVISIONS HEREIN; OR
(3)  PROVIDE  FOR  THE PAYMENT OF AWARDS OR JUDGMENTS RENDERED AGAINST
FUND PARTICIPANTS IN PERSONAL INJURY ACTIONS.
4. THE COMMISSIONER SHALL, BY JANUARY THIRTY-FIRST OF EACH YEAR, CAUSE
AN ACCOUNTING TO BE MADE OF ALL OF  THE  FUND'S  ACTIVITIES  DURING  THE
§ 1235. WRITTEN WARRANTY; CONTENTS. 1. THE HPD OWNER WARRANTY SHALL BE
PROVIDED  TO THE OWNER THAT ACCORDS WITH THE PROVISIONS OF ARTICLE THIR-
TY-SIX-B OF THE GENERAL BUSINESS LAW, INCLUDING THE FOLLOWING:
A. ONE YEAR FROM AND AFTER THE WARRANTY DATE THE  HOME  WILL  BE  FREE
FROM  DEFECTS  DUE  TO  A FAILURE TO HAVE BEEN CONSTRUCTED IN A SKILLFUL
B. TWO YEARS FROM AND AFTER THE  WARRANTY  DATE  THE  PLUMBING,  ELEC-
TRICAL,  HEATING,  COOLING  AND  VENTILATION SYSTEMS OF THE HOME WILL BE
FREE FROM DEFECTS DUE TO A FAILURE BY THE BUILDER TO HAVE INSTALLED SUCH
SYSTEMS IN A SKILLFUL MANNER; AND
C. SIX YEARS FROM AND AFTER THE WARRANTY DATE THE HOME  WILL  BE  FREE
FROM  MATERIAL  DEFECTS, INCLUDING, BUT NOT LIMITED TO, ANY CONSTRUCTION
THAT IS NOT IN COMPLIANCE WITH THE BUILDING CODE OR  THE  ZONING  RESOL-
UTION OF THE CITY OF NEW YORK.
2.  A.  THE  SPONSOR  SHALL  TAKE APPROPRIATE CORRECTIVE ACTION WITHIN
SIXTY DAYS OF RECEIPT OF WRITTEN NOTIFICATION AT THE SITE OF THE HOME IN
INSTANCES OF SUBSTANTIAL DEFECTS  IN  MATERIALS  OR  WORKMANSHIP,  WHICH
BECOME EVIDENT WITHIN ONE YEAR FROM THE DATE OF THE DELIVERY OF THE HOME
TO  THE OWNER, PROVIDED THE OWNER OR HIS TRANSFEREE GIVES WRITTEN NOTICE
OF SUCH DEFECTS TO THE SPONSOR AT THEIR BUSINESS ADDRESS NOT LATER  THAN
ONE YEAR AND TEN DAYS AFTER DATE OF DELIVERY.
B.  THE  SPONSOR  WILL, AS A MINIMUM REMEDY, MAKE REPAIRS OR INDEMNIFY
THE OWNER FOR THE ACTUAL COST OF REPAIRING ANY RUST  DAMAGE  COVERED  BY
C.  THE SPONSOR WILL HONOR ALL VALID CLAIMS UNDER THE WARRANTY REGARD-
LESS OF THEIR NUMBER.
D. NOTHING CONTAINED IN THIS SECTION SHALL BE  DEEMED  TO  PRECLUDE  A
SPONSOR  FROM  ENTERING  INTO A CONTRACT REQUIRING A FINANCIALLY SOLVENT
CONTRACTOR WHO WORKED ON THE HOME TO BE INITIALLY  RESPONSIBLE  FOR  THE
COST  OF  ANY  CORRECTIVE  ACTION  AS  A RESULT OF THE NEGLIGENCE OF THE
3. A. THE WARRANTY UNDER THIS ARTICLE SHALL BE IN ADDITION TO AND  NOT
IN  DEROGATION  OF  ALL OTHER RIGHTS AND PRIVILEGES WHICH SUCH OWNER MAY
HAVE UNDER ANY OTHER LAW OR INSTRUMENT. WAIVER  OF  ANY  RIGHTS  BY  THE
OWNER  UNDER  THIS ARTICLE SHALL BE DEEMED CONTRARY TO PUBLIC POLICY AND
SHALL BE UNENFORCEABLE AND VOID.
S. 3373                             5
B. THE PROVISIONS OF THIS ARTICLE SHALL PREEMPT ANY LOCAL  LAW  INCON-
SISTENT  WITH  THE  PROVISIONS  OF  THIS ARTICLE. THIS ARTICLE SHALL NOT
PREEMPT ANY BUILDER SUBJECT TO ITS PROVISIONS FROM  COMPLYING  WITH  ANY
LOCAL LAW WITH RESPECT TO THE REGULATION OF SPONSORS EXCEPT AS EXPRESSLY
C.  NOTHING  IN THIS ARTICLE SHALL BE CONSTRUED TO REPEAL, INVALIDATE,
SUPERSEDE OR RESTRICT ANY RIGHT, LIABILITY OR  REMEDY  PROVIDED  BY  ANY
OTHER  STATUTE  OF THE STATE, EXCEPT WHERE SUCH CONSTRUCTION WOULD, AS A
MATTER OF LAW, BE UNREASONABLE.
§ 1236. POWERS OF THE COMMISSIONER. THE COMMISSIONER  SHALL  HAVE  THE
FOLLOWING POWERS AND DUTIES WITH RESPECT TO HPD PROJECTS:
A. A LISTING OF ALL PRE-APPROVED, PRE-QUALIFIED, OR APPROVED  SPONSORS
FOR HPD PROJECTS AND ALL SPONSORS AWARDED HPD PROJECTS; AND
B.  RECORDS  OF  ALL  VIOLATIONS ISSUED, DISCIPLINARY ACTION TAKEN AND
DURES FOR THE RESOLUTION OF DISPUTES RELATING TO THE CONSTRUCTION OF HPD
PROJECTS AND TO RESOLVE SUCH COMPLAINTS AND DISPUTES PURSUANT TO SECTION
TWELVE HUNDRED THIRTY-FOUR OF THIS ARTICLE;
4.  TO  PROMULGATE RULES AND REGULATIONS RELATING TO THE PROVISIONS OF
5. TO CONDUCT ADJUDICATORY HEARINGS, PURSUANT TO THE STATE ADMINISTRA-
6.  TO SEEK INJUNCTIVE RELIEF IN THE SUPREME COURT IN THE COUNTY WHERE
THE COMPLAINANT RESIDES; AND
7. TO PROMULGATE RULES AND REGULATIONS  TO  REQUIRE  BONDING,  MINIMUM
CAPITAL REQUIREMENTS OR OTHER REASONABLE METHODS TO ENSURE THAT SPONSORS
ARE  FINANCIALLY  RESPONSIBLE TO FULLY COMPLY WITH THIS ARTICLE AND HAVE
THE FINANCIAL RESOURCES TO MEET THEIR WARRANTY,  CONTRACTUAL  AND  OTHER
OBLIGATIONS  REQUIRED  UNDER  THIS SECTION. IN CONNECTION THEREWITH, THE
COMMISSIONER MAY REQUIRE THE POSTING  OF  SURETY  BONDS  TO  ENSURE  THE
SATISFACTORY COMPLETION OF HPD PROJECTS.
§  1237.  RESOLUTION  OF DISPUTES REGARDING HPD PROJECTS. 1. ANY OWNER
MAY FILE A COMPLAINT WITH THE COMMISSIONER  AS  A  STATE  ADMINISTRATIVE
AGENCY  SEEKING  RESOLUTION  OF  AN ALLEGATION THAT A SUBSTANTIAL DEFECT
EXISTS IN THE DELIVERED CONDITION, INSTALLATION, SERVICE OR CONSTRUCTION
OF AN HPD PROJECT. THE COMMISSIONER  SHALL  PROMULGATE  FORMS  FOR  SUCH
COMPLAINTS  AND  SUCH  FORMS SHALL ALSO BE AVAILABLE ON THE DEPARTMENT'S
WEB-SITE. FOR THE PURPOSE OF THIS ARTICLE, A SUBSTANTIAL DEFECT SHALL BE
A DEFECT OR A NUMBER OF DEFECTS OR OTHER CONDITIONS  WHICH  COLLECTIVELY
CAN REASONABLY BE EXPECTED TO COST ONE THOUSAND DOLLARS OR MORE TO CURE.
2.  COMPLAINTS  FILED  WITH THE COMMISSIONER RELATING TO THE DELIVERED
CONDITION OR CONSTRUCTION OF AN HPD PROJECT SHALL  BE  MADE  WITHIN  ONE
YEAR  AND  TEN  DAYS  AFTER  THE  DATE OF THE DELIVERY OF TITLE, OR OF A
CERTIFICATE OF OCCUPANCY, OR THE EXPIRATION OF ANY APPLICABLE  PROVISION
OF A CONTRACT OR WARRANTY, WHICHEVER IS LATER.
3.  A.  UPON  THE  DEPARTMENT'S DETERMINATION THAT A COMPLAINT, ON ITS
FACE, ALLEGES  A  SUBSTANTIAL  DEFECT  IN  THE  DELIVERED  CONDITION  OR
CONSTRUCTION  OF  AN  HPD PROJECT, THE DEPARTMENT SHALL NOTIFY THE OWNER
B. INITIALLY, THE DEPARTMENT MAY ATTEMPT  TO  INFORMALLY  RESOLVE  THE
S. 3373                             6
C.  THE  DECISION SHALL PROVIDE COMPENSATION TO THE AGGRIEVED PARTY IN
(1) FILING AND RECORDING FEES,  INSPECTION  FEES  AND  OTHER  REQUIRED
(2) THE COST OF CONFORMING REPAIRS OR REPLACEMENTS.
D. THE DEPARTMENT MAY APPORTION LIABILITY BETWEEN TWO OR MORE  PARTIES
E.  THE DECISION RESOLVING THE COMPLAINT SHALL BE IN WRITING AND SHALL
ALL INTERESTED PARTIES, INCLUDING THE SPONSOR AND OWNER.
F. ANY PARTY MAY SEEK JUDICIAL REVIEW OF THE  ADMINISTRATIVE  DETERMI-
§ 1238. PENALTIES FOR VIOLATION OF THIS ARTICLE. ANY PERSON  OR  BUSI-
NESS  ENTITY FOUND GUILTY, AFTER A HEARING, OF A VIOLATION OF THIS ARTI-
CLE, MAY BE REQUIRED TO PAY A CIVIL PENALTY OF NOT MORE THAN  TEN  THOU-
SAND  DOLLARS  FOR EACH SUCH VIOLATION, BUT NOT MORE THAN FIFTY THOUSAND
DOLLARS FOR MORE THAN ONE VIOLATION RELATING TO EACH HPD  PROJECT.  SUCH
FINE SHALL BE COLLECTED AND DEPOSITED IN THE FUND.