Legislation limiting transient uses in multiple dwellings

Governor Paterson signed into law amendments to the multiple dwelling law that would restrict apartments in class A multiple dwellings to permanent residence purposes that is defined as "occupancy by a natural person or family for 30 consecutive days or longer." The law is intended to stop illegal hotel or other "transient" uses (now defined by the law as less than 30 days) in apartments intended for permanent residences. Effectively, the law prohibits renting apartments for less than 30 days in class A multiple dwellings. However, in providing a definition of "transient" the law makes clear that extended stay uses of 30 days or more in class A multiple dwellings are permitted (provided they are not subject to the more restrictive definition of transient use imposed on buildings receiving 421a tax exemptions). The law also permits certain buildings to continue to operate as hotels. REBNY strongly supported the clarification that permitted extended stay uses and the continuation of certain buildings to operate as hotels. However, we pointed out that there were short-term uses of apartments in class A multiple dwellings, such as trainees that stay in corporate apartments or weekly apartment rentals while the owner or primary tenant is on vacation, that were not disruptive to existing tenants of an apartment building and not incompatible with the residential character of the neighborhood. These types of short-term uses would now be prohibited under this new law. In replying to our concerns, the city that strongly supported the law maintained that there was no way to accommodate these types of uses without undermining the purpose of the law. The law does permit house guests to live within a class A multiple dwelling by permission of the permanent occupant of the unit for periods less than 30 days provided there is no monetary compensation for the use. There were favorable aspects to this law for hotels which REBNY supported. There are a number of class A buildings constructed before April 1929, and some before December 1961, that currently operate as hotels. These transient uses were permitted at the time of their construction and have been in continuous legal operation since and have been complying with hotel fire safety requirements. These hotel uses that predate the more restrictive zoning laws will be allowed to continue, provided these class A buildings convert to class B buildings and acquire a new class B certificate of occupancy. These buildings have two years, with a one year extension for cause, to make the conversion. In addition, these building owners may apply to the Board of Standards and Appeals for no more than two extensions of one year if circumstances beyond their control or hardship prevent obtaining a new certificate of occupancy. If these buildings fail to obtain a new certificate of occupancy, all hotel uses must cease and these dwelling units returned to use as for permanent residence purposes. Prior to signing the legislation, the governor noted that "the sweeping language used in the bill would make illegal actions by building owners who had a good faith basis to believe their uses were legal prior to the bill's passage." Those impacted by the bill included various single-room occupancy buildings, bed-and-breakfasts, non-profit providers of services for the mentally ill and other property owners. With the bill scheduled to take effect immediately, the governor noted, that "landowners or community organizations that invested significant funds into a building to promote certain uses that were legal on the day prior to passage, will find the same uses illegal the day after, and overnight find themselves holding property structured for a purpose that is no longer permissible. I believe that this would be inequitable." As a result of this concern, the governor worked with the bill sponsors who have agreed to enact a chapter amendment in the fall that would delay the effective date of this law until May 1, 2011. Steven Spinola is the president of REBNY, New York, N.Y.