STATE OF NEW YORK ________________________________________________________________________

9802--A

IN ASSEMBLY

April 18, 2022 ___________

Introduced by M. of A. EPSTEIN, GONZALEZ-ROJAS, GLICK, MAMDANI, NIOU, GOTTFRIED, GALLAGHER, QUART, REYES, JACKSON, CARROLL, BICHOTTE HERME- LYN, AUBRY, BENEDETTO, FERNANDEZ, TAPIA, MITAYNES, SIMON, ANDERSON, CRUZ, GIBBS -- read once and referred to the Committee on Local Governments -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the real property law, in relation to establishing a program to address the safety and legalization of specified basement and cellar dwelling units in New York city

The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:

1 Section 1. The real property law is amended by adding a new article 16 2 to read as follows: 3 ARTICLE 16 4 BASEMENT AND CELLAR DWELLING UNITS IN NEW YORK CITY 5 Section 480. Definitions. 6 481. Basement and cellar dwelling unit legalization program. 7 482. Tenant protections. 8 § 480. Definitions. As used in this article, the following terms shall 9 have the following meanings: 10 1. "Basement" shall mean a story partly below the grade plane and 11 having less than one-half its clear height (measured from finished floor 12 to finished ceiling) below the grade plane. 13 2. "Cellar" shall mean that portion of a building that is partly or 14 wholly underground, and having one-half or more of its clear height 15 (measured from finished floor to finished ceiling) below the grade 16 plane. 17 3. "Basement or cellar dwelling unit" shall mean a residential dwell- 18 ing unit that provides complete independent living facilities for one or 19 more persons, including permanent provisions for living, sleeping, 20 eating, cooking, bathing and washing, and sanitation, which is located 21 in the basement or cellar of a legal single-family or multi-family 22 dwelling.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14945-02-2

A. 9802--A 2

1 4. "Tenant" shall mean a tenant, subtenant, lessee, sublessee, occu- 2 pant, or assignee of a basement or cellar dwelling unit. 3 5. "Rent" shall mean any consideration, including any bonus, benefit 4 or gratuity demanded or received for or in connection with the 5 possession, use or occupancy of a basement or cellar dwelling unit or 6 the execution or transfer of a lease for such unit. 7 § 481. Basement and cellar dwelling unit legalization program. 8 Notwithstanding any other provision of state or local law to the contra- 9 ry, in the city of New York, the local government may, by local law, 10 establish a program to address, as appropriate, the safe legalization of 11 specified basement or cellar dwelling units in existence prior to the 12 effective date of this article. 13 2. Such program may provide that violations of certain provisions of 14 any of the following shall not be applicable to such basement or cellar 15 dwelling units, as necessary, to administer and implement this program: 16 (a) the multiple dwelling law; (b) local laws, ordinances, resolutions, 17 rules, policies, or regulations adopted or enacted pursuant to the 18 authority of a general, special, charter or other law; and (c) the 19 zoning resolution of the local government. Such program may further 20 provide for amnesty to owners of buildings that contain such basement or 21 cellar dwelling units from such violations that occurred prior to legal- 22 ization. 23 3. No zoning action or discretionary land use or environmental review 24 shall be necessary in order for such program to come into effect or for 25 legalization of basement or cellar dwelling units under such program. 26 4. Such program shall include protections against eviction and limita- 27 tions on rent increases for basement or cellar dwelling units that 28 undergo legalization. 29 5. Basement and cellar dwelling unit legalization projects undertaken 30 pursuant to this article shall be eligible for funding allocated for 31 creating and upgrading accessory dwelling units, subject to any eligi- 32 bility criteria generally applicable to such funds as determined by the 33 commissioner of the division of housing and community renewal. 34 § 482. Tenant protections. 1. A permit application to legalize a 35 basement or cellar dwelling unit in conformance with a local law adopted 36 under this article shall be accompanied by a certification identifying 37 whether the unit was rented, leased, let, hired out, or occupied as a 38 basement or cellar dwelling unit or otherwise for residential purposes 39 as of the effective date of this article, and the rent charged for the 40 unit as of such date, notwithstanding whether occupancy of such unit was 41 authorized by law. The local government shall not use such certification 42 as the basis for an enforcement action against an applicant concerning 43 the unauthorized habitation of a unit. Where a tenant is evicted or 44 otherwise removed from a unit prior to approval of an application to 45 legalize a basement or cellar dwelling unit under this article, such 46 tenant shall have a right of first refusal to return to the unit as a 47 tenant upon its first lawful occupancy as a basement or cellar dwelling 48 unit, notwithstanding whether such prior occupancy was authorized by 49 law. 50 2. A tenant unlawfully denied a right of first refusal under this 51 article shall have a cause of action in any court of competent jurisdic- 52 tion for compensatory and punitive damages and declaratory and injunc- 53 tive relief and such other relief as the court deems necessary in the 54 interests of justice. 55 § 2. This act shall take effect immediately.