Amendments

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Wednesday, September 11, 2013
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Download Copy of Adopted Rule (.pdf): 

 

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.