A 7225: Provides that the contractor who performed the construction work which results in an illegal conversion of a housing unit shall be held liable for monetary penalties related to such illegal conversion, rather than the residents; provides that the owner of the building shall be held liable if such person knew or should reasonably have known that the construction was being done without prior approval by the department of buildings and without the required permits.

  
  STATE OF NEW YORK ________________________________________________________________________ 7225 2025-2026 Regular Sessions  IN ASSEMBLY March 21, 2025 ___________ Introduced by M. of A. CHANDLER-WATERMAN -- read once and referred to the Committee on Cities AN ACT to amend the administrative code of the city of New York, in relation to the liability for an illegal conversion The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The administrative code of the city of New York is amended 2 by adding a new section 28-210.4.3 to read as follows: 3 § 28-210.4.3 Liability for illegal conversion. a. For the purposes of 4 this section, an "illegal conversion" shall mean the creation or modifi- 5 cation of a housing unit or units, for which approval or permits are 6 required by law or regulation, without first obtaining such approval or 7 permits from the department of buildings. 8 b. In the event an illegal conversion has occurred, determined by 9 order or judgment of the environmental control board, the contractor or 10 individual who performed the construction shall be held liable for any 11 monetary penalties related thereto. 12 c. Notwithstanding any provision of law to the contrary, the owner of 13 the building in which an illegal conversion has been performed shall not 14 be held liable for such monetary penalties pursuant to a determination 15 of an illegal conversion unless: 16 (i) such person is also the individual who performed the construction; 17 or 18 (ii) such person knew or reasonably should have known that approval of 19 the department of buildings and permits were required and had not been 20 obtained prior to such construction. 21 d. It shall be a complete and affirmative defense to any violations 22 issued by the department of buildings for illegal conversions or work 23 done without a permit that: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07437-01-5 
 A. 7225 2 1 (i) the department of finance records and the department of buildings 2 records conflict as to the description or assessment of the subject 3 property; or 4 (ii) the owner of the building purchased said property in the illegal 5 conversion condition. 6 § 2. This act shall take effect on the ninetieth day after it shall 7 have become a law.