This bill would require an owner to deposit money in an escrow account, with the department as escrowee, equal to 10% of the rent roll for five years preceding the vacate order for the recovery of relocation expenses incurred.
- Filed (End of Session)
Int. No. 3
By Council Members Chin, Koslowitz, Rosenthal, Lancman, Richards, Johnson, Levine, Reynoso, Mendez, Maisel, Van Bramer, Rodriguez and Menchaca
A Local Law to amend the administrative code of the city of New York, in relation to the recovery of relocation expenses incurred by the department of housing preservation and development pursuant to a vacate order.
Be it enacted by the Council as follows:
Section 1. Subdivision 3 of § 26-305 of chapter 2 of title 26 of the administrative code of the city of New York is amended to read as follows:
3. The department may bring an action against the owner for the recovery of such expenses. The institution of such action shall not suspend or bar the right to pursue any other remedy provided by this section or any other law for the recovery of such expenses. As part of such action for recovery the department may require the owner to deposit moneys in an escrow account, naming the department as escrowee. Such moneys shall be equivalent to at least ten per cent of the rent roll, of the building from which such tenants were relocated, for five years preceding the vacate order.
§ 2. This local law shall take effect ninety days after its enactment, except that the commissioner of housing preservation and development shall take such actions as are necessary for its implementation, including the promulgation of rules, prior to such effective date.
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