BILL NUMBER: S2134A
SPONSOR: KRUEGER
 
TITLE OF BILL:
An act to amend the administrative code of the city of New York, in
relation to requirements for a building owner to refuse to renew a lease
when the building is to be demolished
 
PURPOSE:
Restore the power of the State Division of Housing and Community Renewal
to ensure that building owners seeking permission to refuse to renew
rent stabilized tenants' leases to demolish buildings and construct new
ones are acting in good faith, have sought necessary permits and have
the funds to complete the work.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends subparagraph (a) of paragraph 9 of subdivision c of
section 26-511 of the administrative code of the city of New York.
Section two establishes the effective date.
 
JUSTIFICATION:
A 2022 state Appellate Court Decision (First NY v DHCR) determined that
the Division of Housing and Community Renewal (DHCR) cannot require
landlords who apply for permission to not renew rent stabilized tenants'
leases because they want to demolish a building to show plans for the
property post-demolition and provide proof of segregated funds to do the
proposed work. The decision was contrary to longstanding practices by
DHCR and what many attorneys believed was settled case law. The Appel-
late Court decision makes it much easier for unscrupulous building
owners to push stabilized tenants out when they have no real intention
of demolishing their buildings. There has long been a problem of
certain owners filing phony demolition applications and the First NY
case exacerbates the situation. This bill protects tenants by requiring
owners to submit plans for the construction of a new building and demon-
strate the financial ability to complete the project.
 
LEGISLATIVE HISTORY:
2023-24:S.2015B/A.6276A - Referred to Committee
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Immediately.