Image Credit: William Alatriste
Intro 30-A gives HPD liens a stronger position. On August 14, 2019, City Council passed Intro 30-A providing that the City’s Department of Housing Preservation and Development’s (“HPD”) orders to vacate the premises, and the subsequent costs to relocate the displaced tenant would now be considered high status tax liens on the property. The law is intended to discourage the negligence of building owners and give HPD an ability to recover relocation expenses of those tenants that were forced to vacate. These liens will have a first position over all other liens and encumbrances on the building and lot except for other tax liens and assessments.
The bill was originally introduced by Council Member Margaret Chin on January 31, 2018 because HPD often has difficulty receiving reimbursement from landlords when tenants are displaced and relocated as a result of vacate orders issued by the department. These expenses include all departmental costs, expenses incurred by providing temporary housing (i.e. hotels, motels), bonuses and any other reasonable allowances related to moving. These vacate orders often times are a result of negligent and willful misconduct of those landlords. By giving the vacate orders priority, the bill is designed to encourage landlords to remedy conditions in a more timely fashion.
During the public hearing of the Committee on Housing and Buildings on December 13, 2018, the Real Estate Board of New York (“REBNY”) expressed concern over the clarity of Intro 30-A. REBNY pointed out that vacate orders may be issued for a number of reasons unrelated to tenant harassment such a major storm damage or fire. Responding to concern, the council amended the bill by specifying that liens would result only from negligent or intentional acts of the owner.
The legislation passed unanimously by the City Council. The bill has since been sent to the Mayor and awaits approval. This law will go into effect 2 years after it becomes law.
Council Member Margaret Chin stated, “No landlord should be able to get away with forcing their tenants to pay the costs of their negligence. But far too often we have seen predatory landlords create unlivable conditions that lead to emergency evacuations that not only uproot tenants’ lives, but also force them into a revolving door to the shelter system. My bill, Intro 30 tells these landlords that the buck finally stops here. By requiring HPD to create a first-of-its-kind system to recover relocation expenses, we are putting the City’s worst landlords on the hook for the enormous hardship and trauma that tenants have to endure during a vacate order. This bill creates a strong incentive for landlords to make necessary repairs faster, so that tenants can come back home sooner, and sends a message that vacate orders should never be weaponized as a tool for displacement.”
HPD Commissioner Louise Carroll stated, “This administration is committed to halting tenant harassment in its tracks, and when owners neglect their buildings to the point that they are no longer safe to line in, HPD steps in protect New Yorkers in need. This historic piece of legislation strengthens our enforcement tools and compels owners to make the repairs that put displaced families back in their homes.”
By: Jason Rogovich (Jason Rogovich is the CityLaw Fellow and New York Law School Graduate, Class of 2019)
Intro 30-A, which provide a bit of hope to construction harassment tenants, is a half measure. If enacted, it will do nothing to address tenants for whom life is deliberately made miserable by under the radar landlords who harasser. was hp gives HPD liens a stronger position.
A better idea would be to not limit the bill to vacate order situations. Have the City pay relocation expenses for hotels for Tenants where there are serious lead, mold, asbestos violations or a combination of lesser violations such violations of code or local laws for uncured Fire, HPD, DEP and DOB violations, false of late regulatory filings, utility interruptions and outages. Then make those expenses immediate liens tax lien sales. That would serve the public by disincentivizing lower level construction harassment, negligence, constructive eviction by means of deliberate neglect, and garden variety tenant harassment.
While under 30-A the new liens will have a preferential lien positon, this is not enough because it allows the liens to go uncured for years prior to sale. first position over all other liens and encumbrances on the building and lot except for other tax liens and assessments.
Further, why shouldn’t the new law apply to “major storm damage or fire”? The tenants still must pay rent and the landlords must deliver apartments per the lease, the HMC and law concerning conditions. The landlords should act promptly to remediate and bear the cost of not properly storm proofing in an age of climate upheaval and more frequent storms. The damage from Hurricane Sandy is STILL not completely remediated and there is a mold infestation in some buildings. By this exemption, Landlords, can use global climate change and storms to force tenants out by simply not remediating. Close this loophole.
While HPD Commissioner Louise Carroll stated, “This administration is committed to halting tenant harassment . . . ” and this is a noble sentiment, the exact level of commitment as measured by deeds is lacking. This shows that reality at HPD is still but a version of Through the Looking Glass. I would ask Ms. Carroll for a meeting to point out some buildings where HPD could halt harassmen if it wanted to actualy match deeds to words.
Why does it take 2 years after passing such an important bill for it to actually take effect?
How long the relocation charges sallows to charge the landlord?