L.L. 2012/045

Enactment date: 10/2/2012

Int. No. 404-A

By Council Members Brewer, Cabrera, Foster, Gentile, Koppell, Lappin, Palma, Reyna, Williams, Rodriguez, Dromm, Mealy, Mendez, Mark-Viverito, Rivera, Jackson, Dickens, Garodnick, Vann, Lander, James, Chin, Barron, Gennaro and Koo

A Local Law to amend the administrative code of the city of New York, in relation to fines for illegal conversions of dwelling units from permanent residences.

Be it enacted by the Council as follows:

Section 1. Legislative Findings and Intent. The Council finds that apartments within residential buildings have been converted to uses contrary to their intended purpose, most notably as short-stay hotel rooms, particularly in certain neighborhoods. These practices occur despite existing prohibitions in the City's Zoning Resolution and Administrative Code which creates significant health and safety concerns for occupants of illegally converted apartments within residential buildings and for other residents of these buildings. Furthermore, selected initial findings from the 2011 Housing and Vacancy Survey found a citywide rental vacancy rate of 3.12% which constitutes a ground for a "declaration of emergency" in terms of the lack of available apartments (Section 3 of Chapter 576 of the Laws of 1974 authorizing the extension of rent regulation). The Council also finds that the use of apartments for purposes such as short-stay hotel rooms drives down the already extremely limited supply of housing, including rent-regulated apartments, and places additional pressures on an extremely tight rental market. Moreover, this illegal practice denies permanent tenants the quiet enjoyment of their homes.

While the Council recognizes that the use of property for purposes such as legal hotels and their related businesses are a significant sector of New York City's economy and provide wages and benefits to a large number of workers in New York City, there is an equally strong recognition of the need to discourage illegal conversions and thereby maintain needed rental apartments for permanent tenants. This legislation will increase fines for those who illegally convert residential units and buildings.

* * *

[Consolidated provisions are not included in this Appendix A]

* * *

§ 4. This local law shall take effect sixty days after its enactment, except that the commissioner of buildings shall take such measures as are necessary for its implementation, including the promulgation of rules, prior to such effective date.