Bill S5039-2013

Relates to clarifying certain provisions relating to occupancy of class A multiple dwellings

Relates to clarifying certain provisions relating to occupancy of class A multiple dwellings; provides that use as a short-term rental for less than 30 days shall not disqualify a class A multiple dwelling as a permanent residence.

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  • Jan 8, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • May 7, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Memo

BILL NUMBER:S5039

TITLE OF BILL: An act to amend the multiple dwelling law and the administrative code of the city of New York, in relation to clarifying certain provisions relating to occupancy of class A multiple dwellings

PURPOSE:

To provide an exemption for a specific class of good actors that rent certain class A multiple dwelling units on a short-term basis. The law passed last year (L. 2010, Ch. 225) was created in response to an on-going issue in New York City with single room occupancy (SRO) buildings being used as illegal hotels. This bill does not serve these types of illegal hotels, but rather helps those legitimate individuals that use certain units as vacation rentals, thereby providing tax revenue and tourism dollars to the state and city. Further, the paradigm created by this proposal would further help to eliminate the type of illegal short-term use of class A units that the 2010 law sought.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 4 of the multiple dwelling law, creating a use of a class A unit for short-term rental purposes, so long as such unit is not an SRO, contains a bathroom and a kitchen, has working smoke detectors, and carries sufficient fire, hazard and liability insurance. The unit must also register with the City as a short-term rental unit.

Section 2 of the bill amends section 4 of the multiple dwelling law to add a new subdivision 15-a that would define "short-term rental unit." These units will have to comply with the tax code, including sales and occupancy taxes.

Section 3 of the bill would add a new article 7-D to the multiple dwelling law, creating a short-term rental registration structure. Under the registration process, the individual would register with NYC for a fee of $500 per unit, all of which would be dedicated to enforcement. By having units registered, the City would then be able to conduct audits, inspections, etc., to ensure that guests are behaving in a prudent manner. Any unit not in compliance with the standards above would face a fine of $1000 to $2000. Three separate violations will lead to complete revocation of the registration. Such individual would have the ability to appeal, satisfying any due process concerns. Note that any individual who rents a unit to transient guests for a total of less than 30 days per calendar year would not have to register with NYC. This is intended to carve out those individuals that live in their unit year-round but occasionally rent it while away on vacation or business.

Sections 4, 5 and 6 of the bill would amend the administrative code of the city of New York, adding the same language as in sections 1, 2 and 3 of the bill to section 27-2004 and a new article 2 to subchapter 1 of chapter 2 of title 27, and thereby, maintaining uniformity.

JUSTIFICATION:

The 2010 law was written to encompass a greater universe than was intended., as it rids New York City of a legitimate business model: short-term rental units. These units Provide tax income to New York and tourism dollars to the areas in which they are located. These units should not be confused with the small single room living spaces that are SROs. These units are not those constantly getting bad press which are often associated with decrepitude, poor maintenance, and numerous building and health code violations. This legislation also does not seek to allow for large class A building hotels while one can certainly find examples of municipalities and a few states regulating short-term/vacation rentals, it is a hard pressed task to find those which completely ban the business model. This legislation would help those individuals and small businesses that are longer be able to operate because of the 2010 law.

LEGISLATIVE HISTORY:

FISCAL IMPACT ON THE STATE:

New revenue from sales tax. All costs to the City for enforcement would be paid for through the registration fees and associated penalties.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5039 2013-2014 Regular Sessions IN SENATE May 7, 2013 ___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the multiple dwelling law and the administrative code of the city of New York, in relation to clarifying certain provisions relating to occupancy of class A multiple dwellings THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of subdivision 8 of section 4 of the multiple dwelling law is amended by adding a new subparagraph 3 to read as follows: (3) IN A CLASS A MULTIPLE DWELLING, THE USE OF A SHORT-TERM RENTAL UNIT FOR OCCUPANCY OF FEWER THAN THIRTY CONSECUTIVE DAYS SHALL NOT BE INCONSISTENT WITH THE OCCUPANCY OF SUCH MULTIPLE DWELLING FOR PERMANENT RESIDENCE PURPOSES IF: (A) SUCH DWELLING UNIT DOES NOT PROVIDE SINGLE ROOM OCCUPANCY AS DEFINED BY SUBDIVISION SIXTEEN OF THIS SECTION; (B) SUCH DWELLING UNIT CONTAINS A BATHROOM AND A KITCHEN NOT SHARED WITH ANOTHER UNIT; (C) SUCH DWELLING UNIT PROVIDES FOR AN EVACUATION DIAGRAM IDENTIFYING ALL MEANS OF EGRESS FROM THE SHORT-TERM RENTAL UNIT AND THE BUILDING IN WHICH IT IS LOCATED. SUCH EVACUATION DIAGRAM SHALL BE POSTED IN A CONSPICUOUS PLACE ON THE INSIDE ENTRANCE DOOR OF EACH SHORT-TERM RENTAL UNIT; (D) SUCH DWELLING UNIT CONTAINS WORKING SMOKE DETECTORS IN ACCORDANCE WITH LOCAL FIRE CODE; (E) SUCH DWELLING UNIT HAS SUFFICIENT FIRE, HAZARD, AND LIABILITY INSURANCE TO COVER THOSE PERSONS USING THE UNIT FOR SUCH OCCUPANCY; (F) ALL COMPENSATION RECEIVED FOR RENT, OR FOR HIRE, FOR SUCH DWELLING UNIT, SHALL BE SUBJECT TO ALL APPROPRIATE TAXES AND FEES, INCLUDING, BUT NOT LIMITED TO, TAXES AND FEES IMPOSED BY SECTIONS ELEVEN HUNDRED FOUR,
ELEVEN HUNDRED FIVE, ELEVEN HUNDRED SEVEN AND ELEVEN HUNDRED NINE OF THE TAX LAW, AND SECTION 11-702 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK; AND (G) SUCH UNIT IS REGISTERED WITH THE CITY IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE SEVEN-D OF THIS CHAPTER, UNLESS IT IS USED AS A SHORT-TERM RENTAL UNIT LESS THAN THIRTY DAYS PER CALENDAR YEAR. (H) PROVIDED FURTHER THAT IN NON OWNER-OCCUPIED BUILDINGS, FIFTY PERCENT OR LESS OF THE TOTAL UNITS MAY BE REGISTERED AS SHORT-TERM RENTAL UNITS. S 2. Section 4 of the multiple dwelling law is amended by adding a new subdivision 15-a to read as follows: 15-A. "SHORT-TERM RENTAL UNIT" IS A CLASS A MULTIPLE DWELLING UNIT THAT IS AVAILABLE FOR RENT, OR FOR HIRE, FOR LESS THAN THIRTY DAYS BY GUESTS. S 3. The multiple dwelling law is amended by adding a new article 7-D to read as follows: ARTICLE 7-D SHORT-TERM RENTALS SECTION 288. REGISTRATION REQUIRED. 289. REGISTRATION FEE. 290. VIOLATIONS. 291. REGULATIONS. S 288. REGISTRATION REQUIRED. ANY INDIVIDUAL THAT OPERATES A SHORT-TERM RENTAL UNIT, AS DEFINED BY SUBDIVISION FIFTEEN-A OF SECTION FOUR OF THIS CHAPTER, MUST BE REGISTERED WITH THE DEPARTMENT. EACH UNIT OPERATED BY THE INDIVIDUAL SHALL HAVE A REGISTRATION IDENTIFICATION NUMBER. THE REGISTRATION SHALL INCLUDE THE LOCATION OF THE UNIT. S 289. REGISTRATION FEE. THE REGISTRATION FEE SHALL BE FIVE HUNDRED DOLLARS PER UNIT, ALL OF WHICH SHALL BE DEDICATED TO THE DIVISION, UNIT OR SPECIAL TASK FORCE IN CHARGE OF ENFORCING THIS ARTICLE, AS DETERMINED BY THE DIVISION. S 290. VIOLATIONS. WHEN THE USE OF A SHORT-TERM RENTAL UNIT IS DETER- MINED TO NOT COMPLY WITH ANY REQUIREMENTS SET FORTH IN SUBPARAGRAPH THREE OF PARAGRAPH A OF SUBDIVISION EIGHT OF SECTION FOUR OF THIS ACT, THE INDIVIDUAL WHO REGISTERED THE UNIT AS REQUIRED BY THIS ARTICLE, SHALL BE IN VIOLATION OF THE REGISTRATION AND SUBJECT TO A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS AND NOT MORE THAN TWO THOUSAND DOLLARS. IF AN INDIVIDUAL COMMITS THREE VIOLATIONS IN A SINGLE UNIT, THE INDIVID- UAL'S REGISTRATION OF SUCH UNIT SHALL BE REVOKED PERMANENTLY. SUCH INDI- VIDUAL SHALL BE AFFORDED THE OPPORTUNITY TO APPEAL SUCH REVOCATION IN ACCORDANCE WITH REGULATIONS AND PROCEDURES ADOPTED BY THE CITY. S 291. REGULATIONS. THE DIVISION SHALL PROMULGATE REGULATIONS TO DEAL WITH THE REGISTRATION AND ENFORCEMENT OF SHORT-TERM RENTAL UNITS, INCLUDING INSPECTION AND AUDIT PROCEDURES CONCERNING ALL REGISTERED UNITS. SUCH REGULATIONS MAY ALSO CREATE A PUBLIC REGISTRY OF ALL SHORT- TERM RENTAL UNITS SO THAT THE PUBLIC IS AWARE OF THOSE UNITS IN GOOD STANDING. S 4. Subparagraph (a) of paragraph 8 of subdivision a of section 27-2004 of the administrative code of the city of New York is amended by adding a new clause 3 to read as follows: (3) IN A CLASS A MULTIPLE DWELLING, THE USE OF A SHORT-TERM RENTAL UNIT FOR OCCUPANCY OF FEWER THAN THIRTY CONSECUTIVE DAYS SHALL NOT BE INCONSISTENT WITH THE OCCUPANCY OF SUCH MULTIPLE DWELLING FOR PERMANENT RESIDENCE PURPOSES IF: (A) SUCH DWELLING UNIT DOES NOT PROVIDE SINGLE ROOM OCCUPANCY AS DEFINED BY SUBDIVISION SIXTEEN OF THIS SECTION;
(B) SUCH DWELLING UNIT CONTAINS A BATHROOM AND A KITCHEN NOT SHARED WITH ANOTHER UNIT; (C) SUCH DWELLING UNIT PROVIDES FOR AN EVACUATION DIAGRAM IDENTIFYING ALL MEANS OF EGRESS FROM THE SHORT-TERM RENTAL UNIT AND THE BUILDING IN WHICH IT IS LOCATED. SUCH EVACUATION DIAGRAM SHALL BE POSTED IN A CONSPICUOUS PLACE ON THE INSIDE ENTRANCE DOOR OF EACH SHORT-TERM RENTAL UNIT; (D) SUCH DWELLING UNIT CONTAINS WORKING SMOKE DETECTORS IN ACCORDANCE WITH LOCAL FIRE CODE; (E) SUCH DWELLING UNIT HAS SUFFICIENT FIRE, HAZARD, AND LIABILITY INSURANCE TO COVER THOSE PERSONS USING THE UNIT FOR SUCH OCCUPANCY; (F) ALL COMPENSATION RECEIVED FOR RENT, OR FOR HIRE, FOR SUCH DWELLING UNIT, SHALL BE SUBJECT TO ALL APPROPRIATE TAXES AND FEES, INCLUDING, BUT NOT LIMITED TO, TAXES AND FEES IMPOSED BY SECTIONS ELEVEN HUNDRED FOUR, ELEVEN HUNDRED FIVE, ELEVEN HUNDRED SEVEN AND ELEVEN HUNDRED NINE OF THE NEW YORK STATE TAX LAW, AND SECTION 11-702 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK; AND (G) THE UNIT IS REGISTERED WITH THE CITY IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE TWO OF THIS SUBCHAPTER, UNLESS IT IS USED AS A SHORT-TERM RENTAL UNIT LESS THAN THIRTY DAYS PER CALENDAR YEAR. (H) PROVIDED FURTHER THAT IN NON OWNER-OCCUPIED BUILDINGS, FIFTY PERCENT OR LESS OF THE TOTAL UNITS MAY BE REGISTERED AS SHORT-TERM RENTAL UNITS. S 5. Subdivision a of section 27-2004 of the administrative code of the city of New York is amended by adding a new paragraph 14-a to read as follows: 14-A. SHORT-TERM RENTAL UNIT IS A CLASS A MULTIPLE DWELLING UNIT THAT IS AVAILABLE FOR RENT, OR FOR HIRE, FOR LESS THAN THIRTY DAYS BY GUESTS. S 6. Subchapter 1 of chapter 2 of title 27 of the administrative code of the city of New York is amended by adding a new article 2 to read as follows: ARTICLE 2 SHORT-TERM RENTALS SECTION 27-2004.1 REGISTRATION REQUIRED. 27-2004.2 REGISTRATION FEE. 27-2004.3 VIOLATIONS. 27-2004.4 REGULATIONS. S 27-2004.1 REGISTRATION REQUIRED. ANY INDIVIDUAL THAT OPERATES A SHORT-TERM RENTAL UNIT, AS DEFINED BY PARAGRAPH FOURTEEN-A OF SUBDIVI- SION A OF SECTION 27-2004 OF THIS SUBCHAPTER, MUST BE REGISTERED WITH THE DEPARTMENT. EACH UNIT OPERATED BY THE INDIVIDUAL SHALL HAVE A REGIS- TRATION IDENTIFICATION NUMBER. THE REGISTRATION SHALL INCLUDE THE LOCATION OF THE UNIT. S 27-2004.2 REGISTRATION FEE. THE REGISTRATION FEE SHALL BE FIVE HUNDRED DOLLARS PER UNIT, ALL OF WHICH SHALL BE DEDICATED TO THE DIVI- SION, UNIT OR SPECIAL TASK FORCE IN CHARGE OF ENFORCING THIS ARTICLE, AS DETERMINED BY THE DIVISION. S 27-2004.3 VIOLATIONS. WHEN THE USE OF A SHORT-TERM RENTAL UNIT IS DETERMINED TO NOT COMPLY WITH ANY REQUIREMENTS SET FORTH IN CLAUSE THREE OF SUBPARAGRAPH (A) OF PARAGRAPH EIGHT OF SUBDIVISION A OF SECTION 27-2004 OF THIS CODE, THE INDIVIDUAL WHO REGISTERED THE UNIT AS REQUIRED BY THIS ARTICLE, SHALL BE IN VIOLATION OF THE REGISTRATION AND SUBJECT TO A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS AND NOT MORE THAN TWO THOUSAND DOLLARS. IF AN INDIVIDUAL COMMITS THREE VIOLATIONS IN A SINGLE UNIT, THE INDIVIDUAL'S REGISTRATION OF SUCH UNIT SHALL BE REVOKED PERMA- NENTLY. SUCH INDIVIDUAL SHALL BE AFFORDED THE OPPORTUNITY TO APPEAL
SUCH REVOCATION IN ACCORDANCE WITH REGULATIONS AND PROCEDURES ADOPTED BY THE CITY. S 27-2004.4 REGULATIONS. THE DIVISION SHALL PROMULGATE REGULATIONS TO DEAL WITH THE REGISTRATION AND ENFORCEMENT OF SHORT-TERM RENTAL UNITS, INCLUDING INSPECTION AND AUDIT PROCEDURES CONCERNING ALL REGISTERED UNITS. SUCH REGULATIONS MAY ALSO CREATE A PUBLIC REGISTRY OF ALL SHORT- TERM RENTAL UNITS SO THAT THE PUBLIC IS AWARE OF THOSE UNITS IN GOOD STANDING. S 7. This act shall take effect immediately.

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