Int. No. 164
By Council Members Eldridge, Michels,Duane, Freed, Linares and Perkins; also Council Members Foster, Leffler, Marshall, O'Donovan and Sabini.
A Local Law to amend the administrative code of the city of New York in relation to the licensing of owners, landlords, managing agents, managers, and developers of multiple dwellings.
Be it enacted by the Council as follows:
Section 1. Declaration of legislative findings and intent.
It is hereby declared and found that the health, safety, and welfare of the people of the city of New York require that the administration of multiple dwellings be adequate and proper, and that the quality of such housing is related to the calibre of training and experience of the persons owning and managing such multiple dwellings. This article establishes standards of education, training, and experience and provides for the examination and licensing of multiple dwelling owners, landlords, managing agents, managers, developers, sponsors, and principals.
Licensing is essential in protecting the public against unlawful, dishonest, and harmful practices by the owners, landlords, managing agents, managers, developers, sponsors, and principals of multiple dwellings. Licensing will also minimize incompetent practices, decrease the number of existing and recurring housing code violations, and promote higher standards of efficiency in the housing industry. The city council finds that the enactment of a comprehensive licensing requirement for owners, landlords, managing agents, managers, developers, sponsors, and principals of multiple dwellings will best protect the citizens of New York City and that the provisions of this local law are necessary and designed to protect the public health, safety, and general welfare.
§2. Subchapter 4 of chapter 2 of article 27 of the administrative code of the city of New York is hereby amended by adding a new article 3 to read as follows:
Article 3
Multiple Dwelling Owner, Landlord, Managing
Agent, Manager, Developer, Sponsor, and
Principal License
§27-2109.1 Definitions. For the purpose of this article:
a. "license" means an authorization by the housing licensing commission for any person to own and/or manage multiple dwellings, or to issue proprietary leases or other instruments pertaining to interests in real property within the city of New York.
b. "permit" means an authorization by the housing licensing commission for any corporate entity, partnership, or other business association to own and/or manage multiple dwellings, or to issue proprietary leases or other instruments pertaining to interests in real property within the city of New York.
c. "landlord" means an owner, lessor, sublessor, assignee, proprietary lessee, or other person or entity who grants the right to use or occupy the premises or any portion thereof and who receives or is entitled to receive rent for the use or occupancy of such premises. Any person except the sponsor, owning or possessing fewer than three dwellings units in a single multiple dwelling, or fewer than four dwelling units in different multiple dwellings shall be excluded from this definition.
d. "developer" means a person or entity who proposes to erect and sell a multiple dwelling or multiple dwellings for residential use and/or erects and maintains a multiple dwelling for residential use.
e. "managing agent" means a person designated by the owner to be in control of and responsible for the maintenance and operation of such dwelling and to authorize, on behalf of the owner, the correction of any emergency conditions or the making of any emergency repairs for which the owner is responsible under the provisions of the multiple dwelling law or this code. To qualify for such designation, an agent shall be a natural person over the age of eighteen years and shall reside within the city or customarily and regularly attend a business office maintained within the city. An owner or corporate officer who meets such qualifications may be designated to serve and registered as the managing agent.
f. "sponsor" means any person, partnership, joint venture, corporation, company, trust, association, or other entity or agent thereof who makes or takes part in a public offering or sale in or from the state of New York of securities consisting primarily of shares or participation interests or investments in real estate, including cooperative or condominium interests in realty.
f. "principal" means all individuals who:
(1). have an ownership interest in a minimum of thirty percent of the cooperative or condominium interests in realty; or
(2.) actively participate in the planning and consummation of the public offering or sale in or from the state of New York of securities consisting primarily of shares or participation interests or investments in real estate, including cooperative or condominium interests in realty, regardless of the form of organization of the sponsor, and act as a landlord for more than three cooperative or condominium units in a multiple dwelling unit.
§27-2109.2 Housing licensing commission. a. Membership. The housing licensing commission (commission) shall consist of nine members, including the chairperson, to be appointed as follows: five by the mayor and four by the city council. Four tenant advocates or representatives, four representatives of the real estate industry, and one public member shall be represented on the commission. The chairperson shall be appointed by the mayor. The chairperson shall be a full time position with compensation. Members other than the chairperson shall serve without compensation.
b. Terms of Appointment. Of the nine members first appointed, two shall be appointed for one year, three for two years, and four for three years; thereafter all appointments to the commission shall be for a term of three years. In the event of the death or resignation of any member, his or her successor shall be appointed to serve for the unexpired period of the term for which such member had been appointed.
c. Powers. The commission shall control the granting, issuance, transference, renewal, denial, revocation, and suspension of all licenses issued under this article and shall have the power to levy fines and penalties. To accomplish these purposes, the commission shall have the following powers and limitations:
(1.) The commission, by a majority vote, shall adopt and amend rules and regulations to effectuate the provisions and purposes of this article, including but not limited to, requirements for obtaining a license, standards and procedures for any examinations required for obtaining a license or renewal of a license; standards and descriptions of any course of study required to be undertaken by owners, landlords, managing agents, managers, and developers to obtain or renew a license; and procedures for investigations, hearings, reviews, and appeals with regard to the issuance, suspension, or revocation of a license or the levy of other fines and penalties.
(2.) The commission shall have the power to issue subpoenas, adopt procedures to hear complaints, hold hearings, require the production of records, issue publications, and appoint such employees as it deems to be necessary to carry out its functions.
3. The commission shall delegate the day-to-day operations and responsibility of fact-finding and other administrative determinations, including penalties to independent hearing officers or administrative law judges, whichever is deemed more cost effective. Adverse determinations by such officers may be appealed by either party to the office of administrative trials and hearings pursuant to of the charter of the city of New York.
§27-2109.3 Requirements of license or permit. a. It shall be unlawful, on and after January 1, 1992, for any person to engage in or carry on in the city any business, trade, or calling regulated by this article, without having first obtained a license therefor pursuant to the provisions of this subchapter, except that any certificates of qualification or licenses issued for any such business, trade, or calling issued by the department, or by any other city department or agency, prior to January 1, 1992, shall continue to remain in full force and effect until the expiration or termination thereof in accordance with the terms thereof, unless sooner revoked or suspended for cause as hereinafter provided.
b. It shall be unlawful, on and after January 1, 1992, for any corporate entity, partnership, or other business association to engage in or carry on in the city any business, trade or calling regulated by this subchapter, without at least one of its employees having first obtained a license therefor pursuant to the provisions of this article, except that any certificates of qualification or licenses issued for any such business, trade, or calling issued by the department, or by any other city department or agency, prior to January 1, 1992, shall continue to remain in full force and effect until the expiration or termination thereof in accordance with the terms thereof, unless sooner revoked or suspended for cause as hereinafter provided.
§27-2109.4 License qualifications. a. All applications for a license shall be submitted on forms furnished by the department, and shall be accompanied by the required fee, as hereinafter provided. Each application for a license shall set forth the name, residence address and business address of the applicant, and such information and supporting data concerning his or her qualifications for the license as the commission may require
b. All applicants for licenses shall be at lease eighteen years of age, shall be able to read and write the English language, and shall meet the qualification prescribed for the particular license, as hereinafter provided.
c. Every applicant for a license shall be examined as to his or her fitness and qualifications thereof in accordance with rules and regulations adopted and promulgated by the commission under and pursuant to the provisions of subdivision b of section 1043 of the charter. The commission may require the applicant to submit to an oral, written, and practical examination or any or all of said examinations; and such examinations and investigations required to determine the fitness and qualifications of said applicant shall, upon the request of the commission, be conducted by the department of personnel, which shall certify the results thereof, pursuant to the provisions of section eight hundred nineteen of the charter.
d. All applicants shall submit satisfactory proof establishing that:
1. the applicant has completed a course of study approved by the commission as to method, content, and supervision, or proof of equivalent experience in housing management by any person applying for such license or by the representative or agent of an entity applying for a license; and
2. any multiple dwelling owned or managed by the applicant is free of all hazardous violations at the time of issuance of any license, and the applicant has entered into an agreement with the housing litigation bureau in regard to all other violations of record, as determined by the department of buildings and the department of housing preservation and development, against each building covered by the plan.
3. the applicant has not engaged in any criminal activity related or relevant to the ownership or management of a multiple dwelling.
§27-2109.5 Permit qualifications. All applications for permits shall be submitted on forms furnished by the department, and shall be accompanied by the required fee, as hereinafter provided. Each application for a permit shall set forth the name, residence address, and business address of the applicant, and shall set forth the name, residence address, and business address of the license holder(s). The application shall include the date that the license holder obtained such license and satisfactory proof that the license holder is in good standing with the commission.
§27-2109.6 Fees. a. The fee for obtaining a license shall be one hundred dollars; and the annual renewal fee to maintain the license shall be fifty dollars.
b. The fee for obtaining a permit shall be thirty dollars; and the annual renewal fee to retain the permit shall be the same.
§27-2109.7 Penalties; revocations; suspensions. The license or permit of a landlord, owner, managing agent, manager, developer, sponsor, or principal may be revoked, suspended for a fixed period, or otherwise disciplined in accordance with the rules and regulations promulgated by the commission.
a. A license or permit shall be revoked or suspended by the commission as set forth in its rules and regulations based upon findings after hearing that a landlord, owner, managing agent, manager, developer, sponsor, or principal:
1. is guilty of fraud, deceit, collusion, or misrepresentation in obtaining the license or renewal thereof; or
2. has violated or failed to comply with the housing maintenance code, the building code, the multiple dwelling law, the New York State real property law, or any other laws of the city and state, which are applicable to multiple dwellings; or
3. is guilty of gross negligence, incompetence, misconduct, fraudulent dealings, or poor character that adversely reflects on his or her fitness to own, manage, or develop a multiple dwelling; or
4. has failed to pay any fines or fees levied by any relevant agency or commission; or
5. defaults on its own mortgage obligations or defaults or delays monthly maintenance payments on unsold shares of cooperative apartment buildings or common charges; or
6. is guilty of misappropriation of corporation or association funds; or
7. has failed to correct an immediately hazardous violation as ordered by the department; or
8. has failed to comply with any other rules and regulations promulgated by the commission.
b. The commission shall refuse to issue or renew a license or permit to an applicant and shall suspend or revoke a license or otherwise penalize the holder of a license or permit only after due notice and hearing.
1. The commission shall suspend or revoke a license for conduct of the licensee or permittee, its officers, principal, directors, agents, or employees or stockholders of a corporation in which the majority of the voting shares is held by no more than forty shareholders.
2. If the commission, upon reasonable cause, should believe that any licensee, permittee, or any other person has violated any of the provisions of this article or any rules and regulations promulgated by the commission, it shall have the power to make such investigation as it deems necessary and shall examine the licensee or any other person and compell the production of all relevant books, records, accounts, documents, or other records.
3. No license or permit shall be suspended or revoked until after a hearing before an officer or employee of the department designated for such purpose by the commission or permitee upon notice to the licensee of at least ten days. The notice shall be served by registered or certified mail and shall state the date and place of hearing and set forth the ground or grounds constituting the charges against the licensee. The licensee or permittee shall be heard in defense either in person or by counsel and may produce witnesses and testify. A stenographic record of the hearing shall be taken and preserved. The person conducting the hearing shall make a written report of his or her findings and a determination for the proceeding. The determination may be appealed within ten days. On appeal the three-member panel of administrative law judges shall review such findings and recommendations and, after due deliberations, shall issue an order accepting, modifying, or rejecting such recommendation and dismissal of the charges or suspending or revoking the license as prescribed by law, rules, or regulations.
4. Judicial review. The action of the commission in suspending, revoking, or refusing to issue or renew a license or permit may be reviewed by a proceeding brought under and pursuant to article seventy-eight of the civil practice law and rules. In the event the commission takes longer than six months and makes no finding on a complaint, the complainant may also seek review of the commission's failure to act by a proceeding brought under and pursuant to article seventy-eight of the civil practice law and rules.
5. The corporation counsel may bring an action in the name of the city of New York to restrain or prevent operation of a landlord, owner, managing agent, manager, developer, sponsor, or principal who does not have a license or permit. The corporation counsel may also prevent any other violation of this article or continuance of such violation.
§27-2109.8 Fines and penalties. A landlord, owner, managing agent, manager, developer, sponsor, or principal who is found to be in violation or guilty of any of the activities listed in §27-2109.7, whenever appropriate shall be punished under the provisions of article three of subchapter five of this code, and such person may also be subject to a civil penalty of not less than two hundred and fifty dollars and not more than five hundred dollars, recoverable by the commission by civil action in a court of appropriate jurisdiction.
§27-2109.9 Disclosure. All commission documents concerning final investigations, proceedings, and actions shall be made promptly available for interagency and public inspection. All written requests for information (containing less than 100 pages of duplication) shall be made available within thirty days. Under no circumstances shall written requests take longer than ninety days to process. Reasonable duplicating fees shall be set by the commission and appropriate waivers granted.
§27-2109.10 Exemption. The provisions of this article shall not be applicable to the following: 1) the city of New York, its agencies, and the New York city housing authority; and 2) cooperative boards or condominium corporations which have repossessed a defaulting sponsor's security interest or other interest in the corporation. Once the sponsor's interest is extinguished, however, the cooperative board or condominium corporation shall appoint a licensed agent for the corporation within two years, and at such time, the board shall become subject to the provisions of this article.
§27-2109.11. Separability. If any provision of this article shall be held invalid or ineffective in whole or in part or inapplicable to any person or situation, it is the purpose and intent of this local law that all other provisions hereof shall nevertheless be separate and fully effective and the application of any such provision to other persons or situations unaffected.
§3. Section 27-2098 of such code is amended as follows:
(3) If the dwelling is a multiple dwelling, the name and address of a managing agent designated by the owner to be in control of and responsible for the maintenance and operation of such dwelling and to authorize, on behalf of the owner, the correction of any emergency repairs for which the owner is responsible under the provisions of the multiple dwelling law or this code. To qualify for such designation, an agent shall be a natural person over the age of [twenty-one] eighteen years and shall reside within the city or customarily and regularly attend a business office maintained within the city. An owner or corporate officer who meets such qualifications may be designated to serve and registered as the managing agent.
§4. This local law shall take effect immediately.
Referred to the Committee on Housing and Building.