Bill Text: NY A09657 | 2015-2016 | General Assembly | Amended
Bill Title: Relates to liability and related penalties for illegal conversion.
Sponsorship: Partisan Bill (Democrat 6)
Status: (Introduced - Dead) 2016-04-20 - print number 9657a [A09657 Detail]
Download: New_York-2015-A09657-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9657--A IN ASSEMBLY March 24, 2016 ___________ Introduced by M. of A. HARRIS, MOSLEY, SEPULVEDA, BLAKE -- Multi-Spon- sored by -- M. of A. ABBATE -- read once and referred to the Committee on Housing -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the multiple dwelling law, the limited liability company law and the administrative code of the city of New York, in relation to liability and penalties for illegal conversion The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The multiple dwelling law is amended by adding a new 2 section 170-b to read as follows: 3 § 170-b. Illegal conversion. 1. For the purposes of this section, an 4 illegal conversion shall mean any change in the structural parts or 5 existing facilities of any building, including, but not limited to, the 6 subdivision of rooms, or erection or demolition of walls, or the moving 7 of any building from one location or position to another, in violation 8 of any state or local law, ordinance, code or rule or regulation relat- 9 ing to real property, buildings or multiple dwellings. 10 2. A person or entity who is found to have violated the provisions of 11 subdivision one of this section shall be compelled to remit to the 12 department of taxation and finance the total of all tax credits and/or 13 rebates received in the calendar year in which such person or entity is 14 found to have committed such violation within thirty days after notice 15 of the violation. In addition, such department shall forward to the 16 internal revenue service the name and address of any person or entity 17 that has been found to have violated the provisions of subdivision one 18 of this section. 19 3. In the case of an illegal conversion authorized or undertaken by a 20 limited liability corporation, the attorney general may, in his or her 21 discretion, apply to the supreme court of the county in which the real 22 property that is subject of such illegal conversion lies, for judicially 23 decreed dissolution pursuant to section seven hundred two of the limited 24 liability company law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14686-02-6A. 9657--A 2 1 4. For each day that such payment to the department of taxation and 2 finance is delinquent, interest shall accrue to be paid by such viola- 3 tor. Failure to remit pursuant to subdivision two of this section to the 4 department of taxation and finance on the total amount shall result in a 5 late payment penalty in the amount of one percent per day until the 6 payment is made. 7 § 2. Section 702 of the limited liability company law is amended to 8 read as follows: 9 § 702. Judicial dissolution. 1. On application by or for a member, 10 the supreme court in the judicial district in which the office of the 11 limited liability company is located may decree dissolution of a limited 12 liability company whenever it is not reasonably practicable to carry on 13 the business in conformity with the articles of organization or operat- 14 ing agreement. A certified copy of the order of dissolution shall be 15 filed by the applicant with the department of state within thirty days 16 of its issuance. 17 2. On application by the attorney general, the supreme court in the 18 judicial district in which the office of the limited liability company 19 is located may decree dissolution of a limited liability company whenev- 20 er such company is found to have violated the provisions of section one 21 hundred seventy-b of the multiple dwelling law. 22 § 3. The administrative code of the city of New York is amended by 23 adding a new section 28-210.5 to read as follows: 24 § 28-210.5 Liability for illegal conversion. a. For the purposes of 25 this section, an "illegal conversion" shall mean the creation or modifi- 26 cation of a housing unit or units, for which approval or permits are 27 required by law or regulation, without first obtaining such approval or 28 permits from the department of buildings. 29 b. In the event an illegal conversion has occurred, determined by 30 order or judgment of the environmental control board, the contractor or 31 individual who performed the construction shall be held liable for any 32 monetary penalties as described in subdivision c of this section. 33 c. Any individual or contractor who is found performing an illegal 34 conversion pursuant to subdivision b of this section, shall remit to the 35 department of taxation and finance the total of all tax credits and/or 36 rebates received in the calendar year in which such person is found to 37 have committed such violation within thirty days after notice of the 38 violation. In addition, such department shall forward to the internal 39 revenue service the name and address of any person that has been found 40 to have violated the provisions of subdivision b of this section. For 41 each day that such payment to the department of taxation and finance is 42 delinquent, interest shall accrue to be paid by such violator. Failure 43 to remit pursuant to this subdivision on the total amount shall result 44 in a late payment penalty in the amount of one percent per day until the 45 payment is made. 46 d. It shall be a complete and affirmative defense to any violations 47 issued by the department of buildings for illegal conversions or work 48 done without a permit that: 49 (i) the department of finance records and the department of buildings 50 records conflict as to the description or assessment of the subject 51 property; or 52 (ii) the owner of the building purchased said property in the illegal 53 conversion condition. 54 § 4. This act shall take effect on the ninetieth day after it shall 55 have become a law.
