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NEW YORK STATE
MULTIPLE DWELLING LAW
Chapter 713 of the Laws of 1929, as amended
*ARTICLE 7-C
LEGALIZATION OF INTERIM MULTIPLE DWELLINGS
Section 280. Legislative findings.
281. Definition of "interim
multiple dwelling".
282. Establishment of special loft unit.
283. Occupancy permitted.
284. Owner obligations.
285. Owner protection.
286. Tenant protection.
287. Alternative compliance.
* NB Terminates 96/06/30
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*Sec. 280. Legislative findings.
The legislature hereby finds and declares that a serious public
emergency exists in the housing of a considerable number of
persons in cities having a population of over one million, which
emergency has been created by the increasing number of
conversions of commercial and manufacturing loft buildings to
residential use without compliance with applicable building codes
and laws and without compliance with local laws regarding minimum
housing maintenance standards; that many such buildings do not
conform to minimum standards for health, safety and fire
protection; that housing maintenance services essential to
maintain health, safety and fire protection are not being
provided in many such buildings; that as a consequence of the
acute shortage of housing as found and declared in the emergency
tenant protection act of nineteen seventy-four the tenants in
such buildings would suffer great hardship if forced to relocate;
that as a result of the uncertain status of the tenancy in
question the courts have been increasingly burdened with disputes
between landlords and tenants regarding their respective rights
and obligations under the existing circumstances; that some
courts have declared such buildings "de facto" multiple
dwellings; that illegal and unregulated residential conversions
undermine the integrity of the local zoning resolution and
threaten loss of jobs and industry; that the intervention of the
state and local governments is necessary to effectuate
legalization, consistent with the local zoning resolution, of the
present illegal living arrangements in such "de facto" multiple
dwellings, and to establish a system whereby residential rentals
can be reasonably adjusted so that residential tenants can assist
in paying the cost of such legalization without being forced to
relocate; that in order to prevent uncertainty, hardship, and
dislocation, the provisions of this article are necessary and
designed to protect the public health, safety and general
welfare.
* NB Terminates 96/06/30
*Sec. 281. Definition of "interim multiple dwelling".
1. Except as provided in subdivision two of this section, the
term "interim multiple dwelling" means any building or
structure or portion thereof located in a city of more than
one million persons which (i) at any time was occupied for
manufacturing, commercial, or warehouse purposes; and (ii)
lacks a certificate of compliance or occupancy pursuant to
section three hundred one of this chapter; and (iii) on
December first, nineteen hundred eighty-one was occupied for
residential purposes since April first, nineteen hundred
eighty as the residence or home of any three or more
families living independently of one another.
2. Notwithstanding the definition set forth in subdivision one
of this section, the term "interim multiple dwelling"
includes only (i) buildings, structures or portions thereof
located in a geographical area in which the local zoning
resolution permits residential use as of right, or by minor
modification or administrative certification of a local
planning agency, (ii) buildings or structures which are not
owned by a municipality, (iii) buildings, structures or
portions thereof within an area designated by the local
zoning resolution as a study area for possible rezoning to
permit residential use, or (iv) buildings, structures or
portions thereof which may be converted to residential use
pursuant to a special permit granted by a local planning
agency. In the case of classes of buildings specified by
paragraphs (iii) and (iv) of this subdivision and those
buildings specified by paragraph (i) of this subdivision
which require a minor modification or administrative
certification, however, the provisions of subdivision one of
section two hundred eighty-four of this article regarding
compliance with this chapter shall not be applicable, but
the other provisions of this article shall be applicable.
Upon rezoning of any such study area or the granting of any
such special permit, minor modification or administrative
certification to permit residential use of any such building
or portion thereof, subdivision one of section two hundred
eighty-four of this article shall be applicable, with the
timing of compliance requirements set forth in such section
commencing to run upon the effective date of such rezoning
or permit approval. If such rezoning does not permit
residential use of the building or a portion thereof, or if
a special permit, minor modification or administrative
certification is denied, such building shall be exempt from
this article.
3. In addition to the residents of an interim multiple
dwelling, residential occupants in units first occupied
after April first, nineteen hundred eighty and prior to
April first, nineteen hundred eighty-one shall be qualified
for protection pursuant to this article, provided that the
building or any portion thereof otherwise qualifies as an
interim multiple dwelling, and the tenants are eligible
under the local zoning resolution for such occupancy. A
reduction in the number of occupied residential units in a
building after December first, nineteen hundred eighty-one
shall not eliminate the protections of this article for any
remaining residential occupants qualified for such
protections. Non-residential space in a building as of the
effective date of the act which added this article shall be
offered for residential use only after the obtaining of a
residential certificate of occupancy for such space, and
such space shall be exempt from this article, even if a
portion of such building may be an interim multiple
dwelling.
4. Interim multiple dwellings shall also include buildings,
structures or portions thereof that had residential
occupants on May first, nineteen hundred eighty-seven in
units occupied residentially since December first, nineteen
hundred eighty-one that were occupied for residential
purposes since April first, nineteen hundred eighty and
those units shall be qualified for protection pursuant to
this article, provided that the building or any portion
thereof meets the requirements set out in subdivision one of
this section, regardless of whether the buildings,
structures or portions thereof meets the requirements set
out in paragraphs (i), (iii) and (iv) of subdivision two of
this section.
* NB Terminates 96/06/30
*Sec. 282. Establishment of special loft unit.
In order to resolve complaints of owners of interim multiple
dwellings and of residential occupants of such buildings
qualified for the protection of this article, and to act upon
hardship applications made pursuant to this article, a special
loft unit referred to herein as the "loft board" shall be
established which shall consist of from four to nine members
representative of the public, the real estate industry, loft
residential tenants, and loft manufacturing interests, and a
chairperson, all to be appointed by the mayor of the municipality
and to serve such terms as he may designate. The compensation of
the members of the loft board shall be fixed by the mayor. The
members of the loft board shall not be considered employees of
the state or the municipality, provided, however, that state or
municipal employees or officers may be named to the loft board.
The mayor shall establish the loft board within ninety days of
the effective date of the act which added this article. The loft
board shall have such office and staff as shall be necessary to
carry out functions conferred upon it and may request and receive
assistance from any state or municipal agency or department. The
loft board shall have the following duties: (a) the determination
of interim multiple dwelling status and other issues of coverage
pursuant to this article; (b) the resolution of all hardship
appeals brought under this article; (c) the determination of any
claim for rent adjustment under this article by an owner or
tenant; (d) the issuance, after a public hearing, and the
enforcement of rules and regulations governing minimum housing
maintenance standards in interim multiple dwellings (subject to
the provisions of this chapter and any local building code), rent
adjustments prior to legalization, compliance with this article
and the hearing of complaints and applications made to it
pursuant to this article; and (e) determination of controversies
arising over the fair market value of a residential tenant's
fixtures or reasonable moving expenses. The violation of any rule
or regulation promulgated by the loft board shall be punishable
by a civil penalty determined by the loft board not to exceed one
thousand dollars which may be recovered by the municipality by a
proceeding in any court of competent jurisdiction. The loft board
may charge and collect reasonable fees in the execution of its
responsibilities. The loft board may administer oaths, take
affidavits, hear testimony, and take proof under oath at public
or private hearings.
* NB Terminates 96/06/30
*Sec. 283. Occupancy permitted.
Notwithstanding any other provision of this chapter or any other
law, code, rule or regulation, occupancy for residential purposes
of residential units covered by this article is permitted, if
such occupancy is in compliance with this article. Nothing
contained herein shall be construed to limit local authorities
from issuing vacate orders for hazardous conditions, if
appropriate.
* NB Terminates 96/06/30
*Sec. 284. Owner obligations.
1. (i) The owner of an interim multiple dwelling (A)
shall file an alteration application within nine
months from the effective date of the act which added
this article, and (B) shall take all reasonable and
necessary action to obtain an approved alteration
permit within twelve months from such effective date,
and (C) shall achieve 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 within eighteen months from obtaining
such alteration permit or eighteen months from such
effective date, whichever is later, and (D) shall
take all reasonable and necessary action to obtain a
certificate of occupancy as a class A multiple
dwelling for the residential portions of the building
or structure within thirty-six months from such
effective date. The loft board may, upon good cause
shown, and upon proof of compliance with the
standards of safety and fire protection set forth in
article seven-B of this chapter, twice extend the
time of compliance with the requirement to obtain a
residential certificate of occupancy for periods not
to exceed twelve months each.
(ii) An owner of an interim multiple dwelling who has not
complied with the requirements of paragraph (i) of
this subdivision by the effective date of the chapter
of the laws of nineteen hundred ninety-two which
added this paragraph shall hereafter be deemed in
compliance with this subdivision provided that such
owner files an alteration application by October
first, nineteen hundred ninety-two, takes all
reasonable and necessary action to obtain an approved
alteration permit by October first, nineteen hundred
ninety-three, achieves 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 by April first, nineteen hundred
ninety-five, or within eighteen months from obtaining
an approved alteration permit, whichever is later,
and takes all reasonable and necessary action to
obtain a certificate of occupancy as a class A
multiple dwelling for the residential portions of the
building or structure by October first, nineteen
hundred ninety-five or within six months from
achieving compliance with the aforementioned
standards for the residential portions of the
building, whichever is later.
(iii) An owner who is unable to satisfy any requirement
specified in paragraph (ii) of this subdivision for
reasons beyond his/her control, including, but not
limited to, a requirement to obtain a certificate of
appropriateness for modification of a landmarked
building, a need to obtain a variance from a board of
standards and appeals, or the denial of reasonable
access to a residential unit as required by paragraph
(vii) of this subdivision, may apply to the loft
board for an extension of time to meet the
requirement specified in paragraph (ii) of this
subdivision. The loft board may grant an extension of
time to meet a requirement specified in paragraph
(ii) of this subdivision provided that the owner
demonstrates that he/she has made good faith efforts
to satisfy the requirements.
(iv) If there is a finding by the loft board that an owner
has failed to satisfy any requirement specified in
paragraphs (i) and (ii) of this subdivision, such
owner shall be subject to all penalties set forth in
article eight of this chapter.
(v) In addition to the penalties provided in article
eight of this chapter, if there is a finding by the
loft board that an owner has failed to satisfy any
requirement specified in paragraphs (i) and (ii) of
this subdivision, a court may order specific
performance to enforce the provisions of this article
upon the application of three occupants of separate
residential units qualified for the protection of
this article, or upon the application of the
municipality.
(vi) If, as a consequence of an owner's unlawful failure
to comply with the provisions of paragraphs (i) and
(ii) of this subdivision, any residential occupant
qualified for protection pursuant to this article is
required to vacate his or her unit as a result of a
municipal vacate order, such occupant may recover
from the owner the fair market value of any
improvements made by such tenant and reasonable
moving costs. Any vacate order issued as to such unit
by a local government shall be deemed an order to the
owner to correct the non-compliant conditions,
subject to the provisions of this article.
Furthermore, when such correction has been made, such
occupant shall have the right to re-occupy his or her
unit and shall be entitled to all applicable tenant
protections of this article.
(vii) The occupants of a building shall, upon appropriate
notice regarding the timing and scope of the work
required, afford the owner reasonable access to their
units so that the work necessary for compliance with
this article can be carried out. Access shall also be
afforded, upon reasonable prior notice, for the
purpose of inspecting and surveying units as may be
required to comply with the provisions of this
article and article seven-B of this chapter. Failure
to comply with an order of the loft board regarding
access shall be grounds for eviction of a tenant.
2. Every owner of an interim multiple dwelling, every lessee of
a whole building part of which is an interim multiple
dwelling, and every agent or other person having control of
such a dwelling, shall, within sixty days of the effective
date of the act which added this article, file with the loft
board or any other authority designated by the mayor a
notice in conformity with all provisions of section three
hundred twenty-five of this chapter and with rules and
regulations to be promulgated by the loft board.
* NB Terminates 96/06/30
*Sec. 285. Owner protection.
1. Notwithstanding the provisions of section three hundred two
or three hundred twenty-five of this chapter, the owner of
an interim multiple dwelling may recover rent payable from
residential occupants qualified for the protection of this
article on or after April first, nineteen hundred eighty,
and maintain an action or proceeding for possession of such
premises for non-payment of rent, provided that he is in
compliance with this article.
2. Notwithstanding any other provision of this article, an
owner may apply to the loft board for exemption of a
building or portion thereof from this article on the basis
that compliance with this article in obtaining a legal
residential certificate of occupancy would cause an
unjustifiable hardship either because: (i) it would cause an
unreasonably adverse impact on a non-residential conforming
use tenant within the building or, (ii) the cost of
compliance renders legal residential conversion infeasible.
Residential and other tenants shall be given not less than
sixty days notice in advance of the hearing date for such
application. If the loft board approves such application,
the building or portion thereof shall be exempt from this
article, and may be converted to non-residential conforming
uses, provided, however, that the owner shall, as a
condition of approval of such application, agree to file an
irrevocable recorded covenant in form satisfactory to the
loft board enforceable for fifteen years by the
municipality, that the building will not be re-converted to
residential uses during such time. The standard for granting
such hardship application for a building or portion thereof
shall be as follows: (a) the loft board shall only grant the
minimum relief necessary to relieve any alleged hardship
with the understanding if compliance is reasonably possible
it should be achieved even if it requires alteration of
units, relocation of tenants to vacant space within the
building, re-design of space or application for a non-use-
related variance, special permit, minor modification or
administrative certification; (b) self-created hardship
shall not be allowed; (c) the test for cost infeasibility
shall be that of a reasonable return on the owner's
investment not maximum return on investment; (d) the test
for unreasonably adverse impact on a non-residential
conforming use tenant shall be whether residential
conversion would necessitate displacement. Such hardship
applications shall be submitted to the loft board within
nine months of the establishment of the loft board (or, in
the case of interim multiple dwellings referred to in
subdivision four of section two hundred eighty-one of this
chapter, within nine months of the effective date of that
subdivision), but shall not be considered, absent a waiver
by the loft board, unless the owner has also filed an
alteration application. In determination of any such
hardship application, the loft board may demand such
information as it deems necessary. In approving any such
hardship application, the loft board may fix reasonable
terms and conditions for the vacating of residential
occupancy.
3. An owner of an interim multiple dwelling shall be exempt
from paying a conversion contribution required by the zoning
resolution of the city of New York for that portion of any
building or structure determined by the loft board to be an
interim multiple dwelling.
* NB Terminates 96/06/30
*Sec. 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 the
effective date of this paragraph, 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 paragraph (ii) of
subdivision one of section two hundred eighty-
four of this article, an adjustment equal to six
percent of the rent in effect at the time the
owner files the alteration application.
(B) Upon obtaining an alteration permit, as required
by paragraph (ii) of subdivision one of section
two hundred eighty-four of this article, an
adjustment equal to eight 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
six 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 the effective date of this subparagraph shall
be entitled to a prospective adjustment equal to
fourteen percent of the rent on the effective
date of this subparagraph.
(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
the effective date of this subparagraph shall be
entitled to a prospective adjustment equal to
twenty percent of the rent on the effective date
of this subparagraph.
(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 the effective date of this paragraph.
(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. At such time, the owners of such
buildings shall join a real estate industry stabilization
association in accordance 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, tenants 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. * NB Terminates 96/06/30
*Sec. 287. Alternative compliance.
In any case in which a local building code or this chapter
provides an alternative means of meeting the fire and safety
standards of article seven-B of this chapter, an owner of an
interim multiple dwelling may, to the extent permitted by such
local code or this chapter, elect to comply with the standards of
such code or this chapter rather than with article seven-B. Such
an election shall not affect an owner's obligations to meet the
deadlines for compliance set forth in this article, and in such
cases references herein to article seven-B shall be deemed to
include any such local building code or the applicable provisions
of this chapter.
* NB Terminates 96/06/30
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