N.Y. Multiple Dwelling Law § 285: Owner protection

§ 285. Owner protection. 1. Notwithstanding the provisions of section

three hundred two or three hundred twenty-five of this chapter, the

owner of an interim multiple dwelling may recover rent payable from

residential occupants qualified for the protection of this article on or

after April first, nineteen hundred eighty, and maintain an action or

proceeding for possession of such premises for non-payment of rent,

provided that he is in compliance with this article.

2. Notwithstanding any other provision of this article, an owner may

apply to the loft board for exemption of a building or portion thereof

from this article on the basis that compliance with this article in

obtaining a legal residential certificate of occupancy would cause an

unjustifiable hardship either because: (i) it would cause an

unreasonably adverse impact on a non-residential conforming use tenant

within the building or (ii) the cost of compliance renders legal

residential conversion infeasible. Residential and other tenants shall

be given not less than sixty days notice in advance of the hearing date

for such application. If the loft board approves such application, the

building or portion thereof shall be exempt from this article, and may

be converted to non-residential conforming uses, provided, however, that

the owner shall, as a condition of approval of such application, agree

to file an irrevocable recorded covenant in form satisfactory to the

loft board enforceable for fifteen years by the municipality, that the

building will not be re-converted to residential uses during such time.

The standard for granting such hardship application for a building or

portion thereof shall be as follows: (a) the loft board shall only grant

the minimum relief necessary to relieve any alleged hardship with the

understanding if compliance is reasonably possible it should be achieved

even if it requires alteration of units, relocation of tenants to vacant

space within the building, re-design of space or application for a

non-use-related variance, special permit, minor modification or

administrative certification; (b) self-created hardship shall not be

allowed; (c) the test for cost infeasibility shall be that of a

reasonable return on the owner's investment not maximum return on

investment; (d) the test for unreasonably adverse impact on a

non-residential conforming use tenant shall be whether residential

conversion would necessitate displacement. Such hardship applications

shall be submitted to the loft board within nine months of the

establishment of the loft board (or, in the case of interim multiple

dwellings referred to in subdivision four of section two hundred

eighty-one of this article, within nine months of July twenty-seventh,

nineteen hundred eighty-seven or in the case of interim multiple

dwellings made subject to this article by subdivision five of section

two hundred eighty-one of this article, within nine months of the

effective date of such subdivision five, or, for units that became

subject to this article pursuant to the chapter of the laws of two

thousand thirteen which amended this paragraph, within nine months of

the promulgation of all necessary rules and regulations pursuant to

section two hundred eighty-two-a of this article, but shall not be

considered, absent a waiver by the loft board, unless the owner has also

filed an alteration application. In determination of any such hardship

application, the loft board may demand such information as it deems

necessary. In approving any such hardship application, the loft board

may fix reasonable terms and conditions for the vacating of residential

occupancy.

3. An owner of an interim multiple dwelling shall be exempt from

paying a conversion contribution required by the zoning resolution of

the city of New York for that portion of any building or structure

determined by the loft board to be an interim multiple dwelling.