NY Mult Dwell L § 286 (2021)
2021 New York Laws MDW - Multiple Dwelling Article 7-C - Legalization of Interim Multiple Dwellings 286 - Tenant Protection.

§ 286. Tenant protection. 1. It shall not be a ground for an action or proceeding  to  recover  possession  of a unit occupied by a residential occupant qualified for the protection of this article that the occupancy of the unit is illegal or in violation of  provisions  of  the  tenant's lease or rental agreement because a residential certificate of occupancy has  not  been issued for the building, or because residential occupancy is not permitted by the lease or rental agreement.   2. (i) Prior to compliance with safety and fire  protection  standards of  article seven-B of this chapter, residential occupants qualified for protection pursuant to this  article  shall  be  entitled  to  continued occupancy,  provided that the unit is their primary residence, and shall pay the same rent, including escalations, specified in  their  lease  or rental  agreement  to the extent to which such lease or rental agreement remains in effect or, in the absence of a lease or rental agreement, the same rent most recently paid and accepted by the owner; if there  is  no lease  or  other  rental  agreement in effect, rent adjustments prior to article seven-B compliance shall be in conformity with guidelines to  be set  by  the loft board for such residential occupants within six months from the effective date of this article.  (ii) In addition to any rent adjustment pursuant to paragraph  (i)  of this  subdivision,  on  or  after  June  twenty-first,  nineteen hundred ninety-two, the rent for residential units in interim multiple dwellings that are not yet in compliance with the requirements of subdivision  one of  section two hundred eighty-four of this article shall be adjusted as follows:  (A) Upon the owners' filing of an alteration application, as  required by paragraphs (ii), (iii), (iv), (v), (vi), and (vii) of subdivision one of  section two hundred eighty-four of this article, an adjustment equal to three percent of the rent in effect at the time the owner  files  the alteration application.  (B)  Upon  obtaining  an  alteration permit, as required by paragraphs (ii), (iii), (iv), (v), (vi), and (vii) of subdivision  one  of  section two  hundred  eighty-four  of this article, an adjustment equal to three percent of the rent  in  effect  at  the  time  the  owner  obtains  the alteration permit.  (C)  Upon  achieving  compliance with the standards of safety and fire protection set  forth  in  article  seven-B  of  this  chapter  for  the residential  portions  of  the  building,  an  adjustment  equal to four percent of the rent in effect  at  the  time  the  owner  achieves  such compliance.  (D)  Owners who filed an alteration application prior to the effective date of this subparagraph shall be entitled to a prospective  adjustment equal  to  six  percent  of  the  rent  on  the  effective  date of this subparagraph.  (E)  Owners  who  obtained  an  alteration  permit   prior   to   June twenty-first,  nineteen  hundred  ninety-two  shall  be  entitled  to  a prospective adjustment equal to fourteen percent of  the  rent  on  June twenty-first, nineteen hundred ninety-two.  (F)  Owners  who  achieved compliance with the standards of safety and fire protection set forth in article seven-B of  this  chapter  for  the residential  portions  of  the  building  prior  to  June  twenty-first, nineteen  hundred  ninety-two  shall  be  entitled  to   a   prospective adjustment  equal  to  twenty  percent of the rent on June twenty-first, nineteen hundred ninety-two.  (iii)  Any  rent  adjustments  pursuant  to  paragraph  (ii)  of  this subdivision  shall  not apply to units which were rented at market value after June twenty-first, nineteen hundred eighty-two and prior  to  June twenty-first,  nineteen  hundred  ninety-two.  This  paragraph shall not  apply to units made subject to  this  article  by  subdivision  five  of section two hundred eighty-one of this article.  (iv)  Payment  of  any  rent adjustments pursuant to paragraph (ii) of this subdivision shall commence  the  month  immediately  following  the month in which the act entitling the owner to the adjustment occurred.   3.  Upon  or  after  compliance  with  the  safety and fire protection standards of article seven-B of this chapter, an owner may apply to  the loft  board  for  an  adjustment  of  rent  based  upon the cost of such compliance. Upon approval by the loft board of such compliance, the loft board shall set the initial legal regulated rent, and  each  residential occupant  qualified  for  protection  pursuant  to this article shall be offered  a  residential  lease  subject  to  the  provisions   regarding evictions  and  regulation  of  rent  set  forth in the emergency tenant protection act of  nineteen  seventy-four,  except  to  the  extent  the provisions of this article are inconsistent with such act.   4.  The  initial  legal  regulated  rent established by the loft board shall be equal to (i) the rent in effect, including escalations,  as  of the  date  of  application  for adjustment ("base rent"), plus, (ii) the maximum annual  amount  of  any  increase  allocable  to  compliance  as provided  herein;  and  (iii) the percentage increase then applicable to one, two or three year leases, as elected by the tenant, as  established by  the  local  rent  guidelines  board,  and  applied to the base rent, provided, however, such percentage increases may be adjusted downward by the loft board if prior increases based on loft board  guidelines  cover part  of the same time period to be covered by the rent guidelines board adjustments.   5. An owner may apply to the loft  board  for  rent  adjustments  once based  upon  the cost of compliance with article seven-B of this chapter and once based upon  the  obtaining  of  a  residential  certificate  of occupancy.   If the initial legal regulated rent has been set based only upon article seven-B compliance, a further adjustment  may  be  obtained upon  the  obtaining  of  a  residential  certificate of occupancy. Upon receipt of such records as the loft board shall require, the loft  board shall determine the costs necessarily and reasonably incurred, including financing,  in  obtaining  compliance  with  this  article pursuant to a schedule of reasonable costs to be promulgated by it. The adjustment  in maximum  rents  for  compliance  with  this  article shall be determined either (i) by dividing the amount of the cash cost of such  improvements exclusive  of  interest  and  service  charges over a ten year period of amortization, or (ii) by dividing the amount of the cash  cost  of  such improvements  exclusive  of  interest and service charges over a fifteen year period of  amortization,  plus  the  actual  annual  mortgage  debt service  attributable  to  interest  and service charges in each year of indebtedness to an institutional lender, or other lender approved by the loft board,  incurred  by  the  owner  to  pay  the  cash  cost  of  the improvements,  provided  that  the  maximum  amount  of interest charged includable in rent  shall  reflect  an  annual  amortization  factor  of one-fifteenth  of  the outstanding principal balance. Rental adjustments to each residential unit shall be determined on a basis approved by  the loft  board. An owner may elect that the loft board shall deem the total cost of compliance with this article to be the amounts certified by  the local  department  of  housing  preservation  and  development  of  such municipality in any certificate of eligibility issued in connection with an application for tax exemption or tax abatement  to  the  extent  such certificate  reflects  categories of costs approved by the loft board as reasonable  and  necessary  for  such  compliance.  Rental   adjustments attributable  to  the  cost  of  compliance  with this article shall not  become part of the base rent for purposes of calculating rents  adjusted pursuant to rent guidelines board increases.   6. Notwithstanding any provision of law to the contrary, a residential tenant  qualified  for  protection pursuant to this chapter may sell any improvements to the unit made or purchased by him to an incoming  tenant provided, however, that the tenant shall first offer the improvements to the  owner for an amount equal to their fair market value. Upon purchase of such improvements by the owner, any unit subject to  rent  regulation solely  by reason of this article and not receiving any benefits of real estate tax exemption or  tax  abatement,  shall  be  exempted  from  the provisions  of  this  article requiring rent regulation if such building had fewer than six residential units as of the effective date of the act which  added  this  article,  or  rented  at  market  value  subject  to subsequent  rent regulation if such building had six or more residential units at such time. The loft board shall establish rules and regulations regarding such sale of improvements which shall include provisions  that such right to sell improvements may be exercised only once for each unit subject  to  this  article,  and  that  the opportunity for decontrol or market rentals shall not be available to an owner found  guilty  by  the loft board of harassment of tenants.   7. The local rent guidelines board shall annually establish guidelines for  rent  adjustments  for  the  category  of buildings covered by this article in accordance with the standards  established  pursuant  to  the emergency tenant protection act of nineteen seventy-four. The local rent guidelines board shall consider the necessity of a separate category for such   buildings,   and  a  separately  determined  guideline  for  rent adjustments for those units in which heat is not required to be provided by the owner, and may establish such separate  category  and  guideline. The  loft  board  shall  annually  commission  a study by an independent consultant to assist  the  rent  guidelines  board  in  determining  the economics of loft housing.   8.   Cooperative   and   condominium   units  occupied  by  owners  or tenant-shareholders shall not be subject to rent regulation pursuant  to this article.   9.  No  eviction  plan  for  conversion  to cooperative or condominium ownership for a building which is, or a portion of which is  an  interim multiple dwelling shall be submitted for filing to the department of law pursuant  to the general business law until a residential certificate of occupancy is obtained as required by this article, and  the  residential occupants  qualified for protection pursuant to this article are offered one, two or three year leases, as elected by such persons, in accordance with the provisions for establishment of initial  legal  regulated  rent contained herein. Non-eviction plans for such buildings may be submitted for  filing  only if the sponsor remains responsible for compliance with article seven-B and for all work in common areas required  to  obtain  a residential  certificate  of  occupancy. Cooperative conversion shall be fully in accordance with section three  hundred  fifty-two-eeee  of  the general  business  law,  the  requirements of the code of the local real estate industry  stabilization  association,  and  with  the  rules  and regulations promulgated by the attorney general.   10.  The functions of the local conciliation and appeals board of such municipality regarding owners and tenants  subject  to  rent  regulation pursuant  to  this  article shall be carried out by the loft board until such time as provided otherwise by local law.   11. Residential occupants qualified for protection  pursuant  to  this article  shall  be  afforded  the  protections  available to residential tenants pursuant to the real property law and the real property  actions and proceedings law.    12.  No  waiver  of  rights  pursuant to this article by a residential occupant qualified for protection pursuant to this article made prior to the effective date of the act which added this article shall be accorded any force or effect; however, subsequent to the effective date an  owner and  a  residential  occupant  may agree to the purchase by the owner of such person's rights in a unit.   13. The applicability  of  the  emergency  tenant  protection  act  of nineteen  seventy-four  to  buildings  occupied  by  residential tenants qualified for protection pursuant to this article shall be subject to  a declaration  of  emergency  by  the local legislative body. In the event such act expires prior to the expiration of  this  article,  tenents  in interim  multiple  dwellings  shall  be included in coverage of the rent stabilization law of nineteen hundred sixty-nine  of  the  city  of  New York.