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New York City Loft Board

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

Statement of Basis and Purpose

 

Pursuant to § 282 of Article 7-C of the MDL (“Loft Law”), the Loft Board may promulgate rules to ensure compliance with the Loft Law.

 

In the 2010 amendments to the Loft Law, the New York State Legislature specified that the deadline for seeking coverage by owners and tenants under the Loft Law would be six months from the date the Loft Board adopted the rules necessary to implement the 2010 amendments to its rules. This rule constitutes the final rule necessary to implement the 2010 amendments. Therefore, the deadline for coverage will be six months from the effective date of this rule.

 

Accordingly, the changes to Loft Board § 1-06.1 are as follows:

 

·         A tenant coverage application or the initial registration application form for coverage by a building owner must be filed on or before March 11, 2014, the date 6 months following the effective date of this rule.

 

In 2013, the Legislature further amended the Loft Law to expand the definition of an interim multiple dwelling (“IMD”) provided in MDL § 281(5) (effective June 1, 2012). The Legislature set new deadlines for this newest group of IMDs, including a new code compliance timetable. Many of these deadlines, which are covered in other Loft Board rules, are triggered by the effective date of this rule.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

STATEMENT OF BASIS AND PURPOSE

 

Pursuant to § 282 of Article 7-C of the Multiple Dwelling Law (“Loft Law”), the Loft Board may promulgate rules to ensure compliance with the Loft Law. In June 2010, the Legislature amended the Loft Law by enacting Chapter 147 of the Laws of 2010, which, among other things, amended § 282 of the Loft Law.

 

Section 282 authorizes the Loft Board to designate the Environmental Control Board (“ECB”) to enforce violations of the Loft Law. In accordance with the terms of MDL § 282, this amendment to section 1-07.1 of Title 29 of the Rules of the City of New York clarifies that the procedures for appeal in § 1-07.1, relating to appeals from administrative determinations, do not apply to appeals from ECB determinations.

The amendments further clarify that the procedures in § 1-07.1 apply to: 1) appeals from determinations by Loft Board staff with respect to any matter that does not have to go to the full Board for a determination and 2) determinations by a Loft Board hearing officer with respect to housing maintenance standard violations under § 2-04 of these rules. Finally, the amendments include minor technical changes with respect to the procedures for filing an appeal.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

STATEMENT OF BASIS AND PURPOSE

 

Pursuant to § 282 of Article 7-C of the MDL (“Loft Law”), the Loft Board may promulgate rules to ensure compliance with the Loft Law. In 2010 and 2013, the Legislature amended the Loft Law by enacting Chapters 135 and 147 of the Laws of 2010 and Chapter 4 of the Laws of 2013. The 2010 amendments to the Loft Law established a new category of interim multiple dwellings (IMDs) covered by the Loft Law by adding a new MDL § 281(5). In 2013, the Legislature further amended the definition of an IMD in MDL § 281(5).

 

As described more fully below, the rule amendments amend provisions of sections 2-01, 2-03 and 2-08 of Title 29 of the Rules of the City of New York to conform these rules to the 2010 and 2013 amendments to the Loft Law and provide further clarification of existing rule requirements. Section 1 of this rulemaking amends subdivisions (a) through (h) of 29 RCNY § 2-01. Sections 2 and 3 of this rulemaking amend subdivisions (i) and (m) of § 2-01. Sections 4 through 8 of this rulemaking amend subdivisions (a) and (b) of 29 RCNY § 2-03. Sections 9 through 13 of this rulemaking amend subdivisions (a), (b), (d), (e), (j), (k), (m), (n), (q), (r), and (s) of 29 RCNY § 2-08.

 

Amendments to § 2-01

 

The amendments to § 2-01 in Sections 1 through 3:

 

·       Add code compliance deadlines for IMDs subject to the Loft Board’s jurisdiction under MDL § 281(5) pursuant to the 2010 and 2013 amendments to the Loft Law;

 

·       Update code compliance deadlines for IMDs subject to the Loft Board’s jurisdiction pursuant to MDL §§ 281(1) and 281(4);

 

·       Extend the time to apply for an extension of the final code compliance deadline (certificate of occupancy) for IMD owners subject to the Loft Law pursuant to the 2010 amendments to the Loft Law;

 

·       Clarify the procedures for applying for rent adjustments based on code compliance costs and Rent Guidelines Board increases and explain how such procedures apply to IMDs subject to the Loft Board’s jurisdiction pursuant to MDL § 281(5);

 

·       Clarify the Loft Board’s procedures for setting the initial legal regulated rent;

 

·       Provide that an owner is subject to civil penalties in accordance with 29 RCNY § 2-11.1 for violations of 29 RCNY § 2-01; and

 

·       Extend other existing requirements in 29 RCNY § 2-01 to the IMDs subject to the Loft Board’s jurisdiction pursuant to MDL § 281(5).

 

Amendments to § 2-03

 

In Sections 4 through 8, the Loft Board is amending § 2-03, governing hardship exemption applications to the Loft Board. Pursuant to MDL § 285(2), owners may apply to the Loft Board for an exemption from Article 7-C coverage on the basis that the compliance with Article 7-C would cause an unjustifiable hardship as defined in § 285(2).

 

The amendments to § 2-03:

 

·         Provide the filing deadlines for hardship applications as added in the 2010 and 2013 amendments to the Loft Law;

 

·         Require that an applicant for a hardship exemption attach all supporting documentation to the hardship application form at the time of the initial filing; and

 

·         Generally extend existing provisions in § 2-03 to IMD owners subject to the Loft Board’s jurisdiction pursuant to MDL § 281(5).

 

Amendments to § 2-08

In Sections 9 through 13, the Loft Board is amending 29 RCNY § 2-08, which governs

Article 7-C coverage for IMDs.

 

The amendments to § 2-08:

 

·        Update the requirements for Article 7-C coverage with respect to IMDs covered under MDL § 281(5) in accordance with the 2013 amendments to the Loft Law; and

 

·         Extend existing provisions of § 2-08 to IMDs subject to the Loft Board’s jurisdiction pursuant to the 2013 amendments to the Loft Law.

 

In 2010, the New York State Legislature added restrictions for Article 7-C coverage pursuant to MDL § 281(5) based on, among other things, the size of the IMD and the other uses in the building existing on June 21, 2010. The 2010 amendments excluded from Article 7-C coverage buildings that contained uses that: 1) are listed in Use Groups 15 through 18 of the Zoning Resolution; 2) were currently and actively pursued in the building on June 21, 2010; and 3) the Loft Board determined to be inherently incompatible with residential use in the building. In May 2011, the Loft Board amended § 2-08 to reflect the 2010 amendments to the Loft Law by including the criteria for an IMD pursuant to MDL § 281(5) and by clarifying what uses in Use Groups 15 through 18 are "inherently incompatible" with residential use.

 

In 2013, the Legislature modified the criteria for Article 7-C coverage under § 281(5). The 2013 amendments reduced the minimum size of an IMD unit from 550 to 400 square feet and provided that an activity described in Use Groups 15 through 18 will only bar Article 7-C coverage if the activity existed on June 21, 2010 and continued until the date of the application for Article 7-C coverage. The amendments to § 2-08 reflect these 2013 changes to the Loft Law.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

Please see the NYCLB website for the complete text of the adopted rule.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

Statement of Basis and Purpose

 

On June 21, 2010, the New York State Legislature enacted Section 281(5) of Article 7-C which expanded the criteria for coverage under the Loft Law. Multiple Dwelling Law (MDL) section 286(2)(i) directs the Loft Board to establish rent adjustments prior to Article 7-B compliance, also known as interim rent adjustments for interim multiple dwelling (IMD) units covered under MDL § 281(5).

 

On November 17, 2011, the Loft Board heard testimony from owner and tenant representatives, the Met Council on Housing and the Rent Stabilization Association, among others, about factors the Loft Board should consider in determining the rent adjustments pursuant to MDL section 286(2)(i). In addition, the Loft Board considered over 30 letters received from tenants and advocates for tenants and owners. The information provided was insightful and helpful in understanding the potential impact of these increases on the artist community, current trends in loft housing, and the effect of rent regulation on the housing market.

The following list represents a summary of the reoccurring points presented to the Loft Board in the oral and written comments:

 

·Tenants report that they are already paying market rent;

·Tenants report that most of them have had a recent increase in rent;

·A further increase in addition to the legalization milestone increases will result in the unit being over market rent and price-out the artist community;

·An increase prior to Article 7-B compliance after a lease expires may encourage an owner not to finish the Article 7-B work until after the lease expires to collect the increase;

·Tenants report that the buildings are in a state of disrepair and the owners fail to do proper maintenance; and

·Tenants have invested considerable sums of money by making improvements to make the loft spaces livable and owners should not reap the benefits of their financial investment prior to Article 7-B compliance.

 

After consideration of the comments received to date, the Loft Board determined that there should be no rent adjustment prior to Article 7-B compliance pursuant to MDL § 286(2)(i). The rule sets forth this determination in the interim rent adjustments required in MDL § 286(2)(i) for interim multiple dwelling (IMD) units covered under MDL § 281(5). In addition, the rule provides that garbage escalators will not include services provided by the New York City Department of Sanitation.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

Statement of Basis and Purpose

 

Pursuant to § 282 of Article 7-C of the MDL (“Loft Law”), the Loft Board may promulgate rules to ensure compliance with the Loft Law. Effective as of June 21, 2010, the Legislature enacted Chapters 135 and 147 of the Laws of 2010, which amended the Loft Law.

 

To ensure the Loft Board rules are aligned with the recent amendments to the Loft Law, the amended rule:

 

·         Adds provisions addressing when units covered by the Loft Law pursuant to MDL § 281(5) may be exempted from rent regulation after a sale of improvements.

 

·         Amends the service and proof of service requirements for an application challenging a proposed sale of improvements.

 

·         Directs the reader to the Loft Board’s new fine schedule for penalties that may be imposed for an owner’s failure to file a sales record form with the Loft Board.

 

·         Removes provisions governing sales of improvements that occurred prior to March 23, 1985.

 

·         Adds headings and re-orders the subdivisions of the rule into a more coherent section.

 

 

NEW YORK CITY LOFT BOARD REORGANIZATION OF SECTION 2-07, SALE OF IMPROVEMENTS

 

Old Subdivision

Designation

 

Description

 

New Subdivision Designation

§ 2-07(a)

Definitions

No Change

§ 2-07(b)

Notice: Form and Time Requirements

§ 2-07(f)

§ 2-07(c)

Modifications on Consent, Change of Address

§ 2-07(h) (renamed Deadline Extensions on

Consent and Change of Address)

§ 2-07(d)

Parties

§ 2-07(g)(3)

§ 2-07(e)

Sales not Subject or Partially Subject to These Regulations

§ 2-07(b)(2)

§ 2-07(f)(1)

Right to Sell

§ 2-07(b)(1)

§ 2-07(f)(2)

Offers to Sell to Prospective Tenant

§ 2-07(c)

§ 2-07(f)(3)

Owner’s Response to Offer & Proposed Tenant

§ 2-07(d)

§ 2-07(f)(4)

Acceptance of Prospective Tenant through Owner’s Consent to Tenant’s Purchase or Owner’s Failure to Respond

§ 2-07(d)(3)

§ 2-07(f)(5)

Owner’s Purchase of Improvements

§ 2-07(d)(4)

§ 2-07(g)(1)

Challenges to Proposed Sales of Improvements – Procedures

No Change

§ 2-07(g)(2)

Grounds for Challenge

No Change

§ 2-07(h)

Sales which Occurred Prior to Effective Date of these Regulations

DELETED

§ 2-07(i)

Fair Market Value of Improvements; Hard Exemptions, Vacate Orders, Owner Occupancy

No Change

§ 2-07(j)

Filing the Record

No Change in location but renamed to “Filing the Sales Record with the Loft Board”

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

STATEMENT OF BASIS AND PURPOSE

 

Pursuant to § 282 of Article 7-C of the Multiple Dwellings Law (MDL), also known as the “Loft Law,” the Loft Board may promulgate rules to ensure compliance with the Loft Law.

 

Effective as of June 21, 2010, the New York State Legislature amended the Loft Law and enacted Chapters 135 and 147 of the Laws of 2010, which among other things, added MDL § 281(5). When it added § 281(5), the New York State Legislature expanded the criteria for coverage under the Loft Law.

 

The changes conform § 2-09 of the Loft Board’s rules to the amended Loft Law, by extending the rule’s requirements to buildings covered pursuant to the newly added MDL § 281(5), and clarifying the existing provisions regarding subletting rights, privity with the owner, the right to recover subdivided space, and sale of improvements.

 

To summarize, the amended rule:

 

(a) Updates the definition of an occupant qualified for possession of a residential unit and protection under Article 7-C;

 

(b) Clarifies the conditions necessary for privity between the subtenant and owner or prime lessee;

 

(c) Describes when a prime lessee may recapture the IMD unit or subdivided space if the prime lessee still occupies a portion of the IMD unit; and

 

(d) Clarifies the procedure for a prime lessee to be compensated for the improvements made by the prime lessee.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

Statement of Basis and Purpose

 

Pursuant to § 282 of Article 7-C of the MDL (“Loft Law”), the Loft Board may promulgate rules to ensure compliance with the Loft Law. On June 21, 2010, the Legislature amended the Loft Law. Chapters 135 and 147 of the Laws of 2010, among other things, added MDL § 281(5), and increased the civil penalties that may be imposed for violations of Loft Board rules.

 

MDL § 286(12) allows a residential occupant to sell his or her Loft Law rights to the owner. These rule amendments address the procedures for a sale of rights, as applied to residential occupants of units covered under the Loft Law including occupants covered pursuant to MDL § 281(5).

The rule changes:

 

·         Direct the reader to the Loft Board’s fine schedule in § 2-11.1 for civil penalties that may be imposed for failure to timely file a Sales Record form.

 

·         Clarify that a purported sale of rights pursuant to MDL § 286(12) made prior to June 21, 2010 for units subject to coverage pursuant to MDL § 281(5) will not be given any effect by the Loft Board.

 

·         Provide that the estate of a residential occupant entitled to protection will be an affected party in an abandonment application.

 

·         Include minor edits to promote clarity and organization of the rule.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

Statement of Basis and Purpose

 

On June 21, 2010, the New York State Legislature amended § 282 of the Multiple Dwelling Law to increase the maximum fine amount that the Loft Board may impose for violations of its rules from $1,000 to $17,500 per violation. The Loft Board is now proposing to amend its penalties for violations of its rules in accordance with § 282 by adding a new § 2-11.1 to Title 29 of the Rules of the City of New York.

 

The rule establishes a fine schedule for violations of the Loft Board rules under § 2-01 (Code Compliance), § 2-01.1 (Reasonable and Necessary Action), § 2-02 (Harassment), § 2-05 (Registration), § 2-07 (Sale of Improvements), and § 2-10 (Sale of Rights) of Title 29 of the Rules of the City of New York, including fines for subsequent violations. Sections 2-01.1 and 2-05 are also being amended to conform to the new fine amounts in § 2-11.1.

 

 

Effective Date: 
Wed, 09/11/2013

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

STATEMENT OF BASIS AND PURPOSE

 

Pursuant to § 282 of Article 7-C of the Multiple Dwelling Law (“Loft Law”), the Loft Board may promulgate rules to ensure compliance with the Loft Law. Section 282 of the Multiple Dwelling Law (“MDL”) also states that the Loft Board may charge and collect reasonable fees in the execution of its responsibilities.

 

Effective as of June 21, 2010, the Legislature amended the Loft Law. To improve clarity and organization, the Loft Board is amending § 2-11 of the Rules of City of New York to:

 

·         Update the fee for filing a challenge to a proposed sale of improvements to conform to the existing fee provided in §2-07;

 

·         Amend the deadline for the application filing fee and the deadline for the request for a waiver of the filing fee. Both the application filing fee and the request for a waiver are now due upon filing the application;

 

·         Provide that the Loft Board may request additional or supporting documentation related to an applicant’s request for a waiver of the application fee; and

 

·         Add headings to subsections.

 

 

Effective Date: 
Wed, 09/11/2013

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