[NYtenants-online] NY Tenants Online 12/29/01

Tenant tenant@tenant.net
Sat, 29 Dec 2001 15:31:54 -0500


NYtenants Online/TenantNet                               12/29/01
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HOW LONG UNTIL RUDY LEAVES?
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IN THIS ISSUE ...

1. No Heat? Here's the info
2. Rev. Billy -- Where's the Oscar Buzz?
3. NYC Budget Update: Tenant Groups Mostly Spared (City Limits)
4. City Rent Control Statute Upheld (Law Journal)
5. Court Nixes Higher Rents for Rent-Controlled Apartments (Newsday)
6. Lead Paint: A Ruling For Tenants (NY Times)

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REMINDER: It's Heat Season (info from HPD)

The City Housing Maintenance Code and Multiple Dwelling Law requires 
building owners to provide heat and hot water to all tenants. Building 
owners are required to provide hot water 365 days per year at a constant 
minimum temperature of 120 degrees Fahrenheit. Between October 1st and May 
31st, a period designated as "Heat Season," building owners are also 
required to provide tenants with heat under the following conditions:

· Between the hours of 6:00 AM and 10:00 PM, if the outside temperature 
falls below 55 degrees, the inside temperature is required to be at least 
68 degrees Fahrenheit; and,

· Between the hours of 10:00 PM and 6:00 AM, if the temperature outside 
falls below 40 degrees, the inside temperature is required to be at least 
55 degrees Fahrenheit.

Tenants who are cold in their apartments should first attempt to notify the 
building owner, managing agent or superintendent. If heat is not restored, 
the tenant should call HPD's citywide Central Complaint Bureau (CCB) at 
(212) 824-HEAT, 24-hours a day, seven-days a week all year round. HPD can 
also receive complaints from hearing-impaired tenants via a Touchtone 
Device for the Deaf TDD at (212) 863-5504.

When a CCB operator receives a complaint, HPD staff will attempt to contact 
the building's owner or managing agent to get heat or hot water service 
restored. Before an HPD code inspector is dispatched to the building, HPD 
will call the tenant back to determine whether service has been restored. 
If service has not been restored, an HPD inspector is sent to the building 
usually within 48 hours under normal conditions to verify the complaint and 
issue a violation.

In cases where private owners fail to restore heat and hot water, or when 
HPD is unable to reach owners, HPD's Emergency Repair Program (ERP) uses 
in-house staff and private contractors to make the necessary repairs to 
restore essential services.

If a building owner fails to provide heat and hot water during the winter 
or has a serious history of flagrantly disregarding obligations to provide 
service to tenants, HPD’s Housing Litigation Bureau (HLB) may sue the 
building owner in Housing Court. HLB regularly reviews all heat and hot 
water violations.

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REVEREND BILLY HITS THE SILVER SCREEN
Reverend Billy & The Church of Stop Shopping
Documentary, USA/Germany 2001, digital video
directed by Dietmar Post, produced by Lucia Palacios

Reverend Billy, a.k.a. Bill Talen, is an actor/performance artist and a 
leading figure within the anti-globalization movement. His work combines 
the ideas of social and political change with the means of theater arts to 
counteract our media-laden culture.

The film follows the Reverend’s "shopping interventions/actions" into 
cultural dead zones such as Starbucks, Disney and the New York University 
construction site at Poe House.

Filmmakers Dietmar Post and Lucía Palacios were invited by Bill Talen to 
follow his artistic and political work over the period of one year (Summer 
2000 ­ Summer 2001). http://www.playloud.org/revbilly.html. Filmmakers 
Dietmar Post and Lucia Palacios and Reverend Billy will attend the screening.

January 16, 2002
At: Anthology Film Archives
32 Second Ave @ 2nd Street
NY 10003
Tel 212-505-5181

Program
6 PM	New Filmmakers Early Short Program
7 PM 	New Filmmakers Regular Short Program
8 PM	New Filmmakers Feature Presentation

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BUDGET UPDATE: TENANT GROUPS MOSTLY SPARED

Final City Budget Offers Bittersweet Holiday Gifts
City Limits, by Matt Pacenza

More than a few nonprofit organizations breathed a sigh of relief last 
Wednesday after the City Council convinced the Giuliani administration to 
restore more than $55 million in proposed budget cuts that would have 
slashed everything from housing court advisors to Little League uniforms.

The negotiators put back nearly all of the housing cuts, including $1.25 
million for legal services for tenant litigation and eviction battles. "We 
were frightened up until [Wednesday]," said a giddy Adele Bartlett, 
supervising attorney for the East Side SRO Law Project at MFY Legal 
Services. Also spared were the West Side SRO Law Project, $175,000 for the 
City Wide Task Force on Housing Court and a $397,000 cut in the Community 
Consultant Contract, which funds the tenant advocacy and organizing work of 
about 50 organizations citywide.

The mayor also pulled back on his proposed $4.8 million cut in youth 
programs that provide thousands of small grants to groups ranging from 
community centers to ballet troupes. "For local groups, it's their bread 
and butter," said Michelle Yanche, director of the Neighborhood Family 
Services Coalition. "To pull out this funding halfway through their fiscal 
year would have been very problematic. Much of these programs had spent 
their money already, under the assumption they would be reimbursed."

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CITY RENT CONTROL STATUTE UPHELD
New York Law Journal, December 21, 2001
by John Caher

A divided Court of Appeals on Thursday dealt a financial blow to New York 
City's landlords in upholding a local law that effectively reduces rent 
increases for rent-controlled housing.

The 5-1 Court said that the 1997 New York City statute does not violate the 
so-called "Urstadt Law," a state statute prohibiting localities from 
imposing more restrictive economic regulations on rent-controlled units 
without state approval. Rather, in an opinion by Chief Judge Judith S. Kaye 
the majority found that the Urstadt Law is not violated solely because a 
local statute "tends to reduce profits for rent-controlled property owners."

The rent-control matter, New York City v. New York State Division of 
Housing and Community Renewal, 164, represents the Court's latest foray 
into an arena former Chief Judge Charles Breitel once described as an 
"impenetrable thicket, confusing not only to laymen but to lawyers" (Matter 
of 89 Christopher v. Joy, 35, NY2d 213, 1974). Here, Chief Judge Kaye wrote 
an 18-page tutorial-like opinion that seeks to make intelligible a 
half-century of befuddling law, public policy, tradition and precedent.

At the root of the case is the Urstadt Law, a 1971 statute was named for 
then Division of Housing and Community Renewal Commissioner Charles J. 
Urstadt. The law was designed to prevent the City from extending or 
expanding rent regulation. It specifically bars local imposition of "more 
stringent or restrictive provisions of regulation and control than those 
presently in effect" without state approval.

Here, the issue was whether the Urstadt Law prohibited the City from 
adopting a new method for calculating capital value. The majority concluded 
that it does not.

Initially, the formula for computing biennial rent increases was based on 
capital value, or an aggregation of the assessed value of all properties in 
New York City. A 1970 City law allowed landlords an 8.5 percent return on 
capital value. It based the capital value of a rent-controlled structure on 
its equalized assessed valuation pursuant to Article 12A of the Real 
Property Tax Law. Regardless, since 1986 the State has relied on Article 
12, not Article 12A, which resulted in a lower permissible rent increase. 
For example, for the 1996-97 rent cycle reliance on Article 12 resulted in 
a maximum base rent increase of 3 percent. When landlords fought that 
calculation and obtained a court order requiring recalculation under 
Article 12A, the maximum base rent increase was more than 32 percent.

The City responded with Local Law 73, which set Article 12 as the standard 
for determining capital value. That led to a challenge by the Rent 
Stabilization Association and other landlord advocacy groups, and 
ultimately to this appeal.

Chief Judge Kaye distilled the question to one of statutory interpretation 
that turns on whether the assurances of the Urstadt Law were violated by 
Local Law 73. The majority found that nothing in the Urstadt Law or its 
legislative history suggests that the Legislature intended to lock in 
Article 12A as the means for measuring capital value.

"We cannot accept the landlords' argument that the Urstadt Law was intended 
to give them a vested interest in overvaluation," Chief Judge Kaye wrote. 
"We cannot accept ... that the State Legislature intended to prohibit the 
City Council from later adopting another, more accurate, equalization scheme."

The majority, which also included Judges George Bundy Smith, Howard A. 
Levine, Carmen Beauchamp Ciparick and Richard C. Wesley, stressed that the 
holding "in no sense diminishes the protections of the Urstadt Law against 
... changes in rent control. It merely recognizes that Local Law 73 
preserves that regulatory scheme while restoring congruence between the 
statutory measure of capital value and the actual value of rent-controlled 
buildings that the State Legislature took for granted when it passed the 
Urstadt Law."

In a lone dissent, Judge Albert M. Rosenblatt cited three insurmountable 
problems with the majority's position. He found no statutory or decisional 
basis for applying the new standard, suggested that the Court had neglected 
to provide a workable rule for deciding when rent control changes are 
impermissible and argued that under any interpretation Local Law 73 
expanded the City's regulatory control, and therefore violated the Urstadt Law.

"The Urstadt Law removes rent control decisionmaking from the level of 
local government and requires rent control advocates to make their case 
before the State Legislature," Judge Rosenblatt said in dissent. "The 
reason is obvious: The State made the Urstadt promise, and only the State 
can break or weaken it."

Judge Victoria A. Graffeo did not take part.

Appearing were: Jeffrey R. Metz of Borah, Goldstein, Altschuler & Schwartz 
in Manhattan for the RSA; Assistant Corporation Counsel Dona B. Morris for 
the City; and Stephen Dobkin of Collins Dobkin & Miller LLP in Manhattan 
for the leading tenant intervenor, Met Council on Housing.

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HIGH STATE COURT DECLINES TO GRANT HIGHER INCREASES TO
LANDLORDS OF NYC RENT-CONTROLLED APARTMENTS
Newsday, (A.P.), December 20, 2001
by Joe; Stashenko

ALBANY -- The state's highest court Thursday rejected an attempt by New 
York City landlords to argue that a 1997 city law unfairly limits what they 
can charge for rent-controlled apartments.

By a 5-1 margin, the Court of Appeals said the law institutes a valid tool 
for use by housing regulators when determining assessed values of rental 
properties and the increases on rent-controlled units that landlords deserved.

The Rent Stabilization Association and other landlords' groups in the city 
had challenged the city law, contending that it violates the state 
Legislature's prohibition against local laws being "more stringent or 
restrictive" than the state-established standards for the rent-control system.

The Court of Appeals said the city was free to adopt a "more accurate, 
equalization scheme" in 1997 than a procedure also on the books to 
determine property value, Chief Judge Judith Kaye wrote for the court's 
majority. She said the change in standards was done to address inequities 
in the way rental properties were being valued in the city.

Under the old standard, landlords would have been in line for an 8.5 
percent maximum increase on rent-control units in 1997. But using the other 
standard, administrators of the rent-control system granted a 3 percent 
increase.

The sole dissenting judge Thursday, Albert Rosenblatt, said the effect of 
the city's mandate to use the alternative standard which yielded a smaller 
rent increase for landlords shows that they were unfairly treated.

"By restricting landlords' economic return in the form of rent, the city is 
engaging in `more stringent and restrictive' rent control," Rosenblatt 
wrote. "It cannot be otherwise. As Yogi Berra might have put it, the bottom 
line is, after all, the bottom line."

Mitch Posilin, the Rent Stabilization Association's general counsel, said 
landlords were disappointed with Thursday's ruling.

But he said the decision makes it clear the Court of Appeals believes the 
City Council cannot "expand the universe of rent-controlled apartments in 
the city of New York." That is up to the state Legislature, Posilin said.

A lawyer for a tenants' group which argued against higher rents, Stephen 
Dobkin of the Met Council on Housing, called the ruling a "terrific" one 
for occupants of rent-controlled apartments.

"Had the landlords prevailed, rates would have increased by 7.5 percent 
every year for future years as well as going back," Dobkin said. "This does 
put a limit on future increases as well."

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LEAD PAINT: A RULING FOR TENANTS
New York Times, December 9, 2001
By JAY ROMANO

The New York State Court of Appeals issued a ruling last month that lawyers 
say will make it easier for renters whose children are victims of lead 
poisoning to sue their landlords for damages.

In a unanimous decision, the state's highest court reversed a trend 
established in New York courts outside New York City in which landlords 
could be held liable only if a tenant proved that the landlord had actual 
knowledge of the existence of lead-based paint in the tenant's apartment. 
(New York City's rules do not require the owner of a multiple dwelling to 
have actual knowledge of the existence of lead-based paint to be liable for 
damages.)

But while the ruling makes it easier for tenants across the state — 
including New York City tenants in one- and two-family homes, which are not 
covered by the city's lead-paint laws — to hold landlords accountable for 
injuries to their children, it stops short of requiring landlords to test 
their properties for the presence of lead-based paint.

Nonetheless, Matthew Chachere, a staff lawyer with the Northern Manhattan 
Improvement Corporation, a not-for-profit legal services agency in 
Manhattan, said he believed "that the impact of this case will be 
enormous." Mr. Chachere, who filed a friend of the court brief in the case 
on behalf of the New York City Coalition to End Lead Poisoning and 25 
medical professionals and advocacy organizations, said that the ruling 
"represents a major step in requiring landlords to take an active role in 
preventing lead poisoning."

He said that before the court's Nov. 15 ruling in the case of Chapman vs. 
Silber, a tenant's ability to sue a landlord for damages resulting from a 
child's ingestion of lead- based paint differed significantly depending on 
where in New York State the tenant lived.

In New York City, Mr. Chachere said, Local Law 1 of 1982 basically requires 
owners of multiple dwellings in the city to remove or safely and 
permanently cover any lead- based paint in any apartment in which a child 
under age 7 resides. Local Law 38 of 1999, which is currently being 
challenged in court, reduces the age to children under 6 and requires the 
landlord to remove or cover only lead paint that is visibly deteriorating.

In 1996, he said, the Court of Appeals, applying the law, ruled that the 
mere presence of peeling paint in apartments with young children provided 
"constructive notice" that the children could be at risk for lead 
poisoning, and therefore exposed the landlords to liability for negligence 
if poisoning happened and imposed a duty on the landlords to eliminate 
lead-based paint hazards in their properties.

In other words, Mr. Chachere said, in multiple dwellings in New York City, 
tenants did not have to prove that a landlord actually knew there was 
lead-based paint to be able to hold the landlord responsible for injuries 
sustained by their children.

Elsewhere in New York State, however, the situation was quite different.

Since there is no statewide law similar to New York City's Local Law 1 of 
1982, courts throughout the state applied a different standard for 
determining a landlord's liability. Mr. Chachere said that in cases outside 
the city, as well as cases in the city in which the tenant was renting in a 
one- or two-family building, negligence cases brought against landlords 
were routinely dismissed if the tenant could not prove that the landlord 
had actual notice that there was lead- based paint in the apartment.

"Basically, the cases were encouraging landlords to avoid finding out if 
there was lead-based paint in their buildings," Mr. Chachere said. "If the 
landlord tested, and discovered that the building contained lead- based 
paint, he could be held liable if a child ended up with lead poisoning. But 
if the landlord didn't test for lead, and therefore didn't actually know it 
was present, he couldn't be held liable."

To address this problem, the Court of Appeals established a five-part test 
in last month's decision. The court concluded that an injured tenant can 
proceed with a lawsuit against a landlord when the tenant shows that the 
landlord retained a right of entry to the premises and assumed a duty to 
make repairs, knew that the apartment was built before lead-based interior 
paint was banned (generally, in buildings built before 1978), was aware 
that paint was peeling on the premises, knew of the hazards of lead-based 
paint to young children and knew that a young child lived in the apartment.

Peter Danziger, the Albany lawyer who represented the plaintiffs in the 
case, said that it involved James and Sallie Chapman, who rented an 
apartment in Albany in 1994. After the couple moved into the apartment with 
their three children — including a year-old son, Jaquan — they complained 
to the landlord about chipping and peeling paint on the front porch and in 
the window tracks. About two months after they moved in, a routine blood 
test revealed moderately high lead levels in Jaquan's blood.

Subsequent tests indicated blood- lead levels so high they resulted in the 
boy's hospitalization. The Chapmans then filed a $10 million suit against 
the landlord. Their son, Mr. Danziger said, sustained permanent brain 
damage that resulted in problems with speech and motor skills.

After a State Supreme Court justice declined to dismiss the case, an 
appeals court granted the landlord's motion to dismiss on the grounds that 
there was no proof that the landlord actually knew there was lead- based 
paint in the apartment. It was that decision that the Court of Appeals 
reversed.

"Basically, the court ruled that we presented enough facts to get the case 
before a jury," Mr. Danziger said, adding that in addition to making it 
possible for tenants whose children have been poisoned by lead- based paint 
to bring negligence lawsuits against landlords, the court's ruling would 
likely go a long way toward protecting other children from lead poisoning 
in the future.

"In the past, some landlords didn't test their buildings for lead because 
they didn't really want to know whether it was there," he said. "But now 
I'm sure that landlords will do more testing, and that could help save 
thousands of children."

Mark Cheffo, a Manhattan lawyer who helped write a friend of the court 
brief on behalf of organizations that represent property owners, said that 
while the court clearly stated that it was not imposing a duty on landlords 
to inspect their buildings for lead, it is not nearly so clear what 
landlords are expected to do to minimize their exposure to liability.

"This is a very serious issue for landlords," Mr. Cheffo said. "There have 
been verdicts in these cases in the millions of dollars."

Kathleen Burr, a Buffalo lawyer who also worked on the brief filed on 
behalf of the property owners' organizations and who represents upstate 
landlords in lead-paint cases, said that it is clear that landlords will 
have to be much more cognizant of the potential for problems associated 
with lead-based paint.

"To be absolutely liability-proof, landlords who have young children in 
their buildings probably should consider hiring a reputable contractor to 
inspect for lead-based paint," Ms. Burr said, adding, however, that if a 
problem is found, some landlords may be faced with a difficult choice, 
"given the significant cost associated with lead remediation work." The 
cost, she said, can range from thousands to tens of thousands of dollars, 
depending on the scope of the work.

"Given the depressed value of many upstate inner-city rental properties," 
she said, "some upstate landlords may find that it makes more sense to get 
out of the landlord business altogether."
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