Section 302-A. Abatement of rent in the case of serious violations

1.  The  provisions  of  this section shall apply to all cities with a
  population of four hundred thousand or more.
    2. a. A "rent impairing" violation within the meaning of this  section
  shall designate a condition in a multiple dwelling which, in the opinion
  of  the  department,  constitutes,  or  if  not promptly corrected, will
  constitute, a fire hazard or a serious threat to  the  life,  health  or
  safety of occupants thereof.
    b. The determination as to which violations are "rent impairing" shall
  be  made  in the following manner. Within six months after the enactment
  of this section, the department shall promulgate a  list  of  conditions
  constituting  violations  of  the  provisions of this chapter and of any
  regulations promulgated pursuant to the provisions of  subdivision  four
  of  section  three  of  this  chapter.  Such  list shall contain a brief
  description of the condition constituting the violation, the section  of
  this  chapter  or  regulation  violated,  and  the order number assigned
  thereto. The department may from time  to  time  change  the  number  or
  description  of  violations on such list, as may seem appropriate to the
  department. Such list shall be available at all times to the public.
    c. At the time of the promulgation of  the  list  of  violations,  the
  department shall also designate, by reference to the order number, those
  violations  which  it  proposes  to  classify as rent impairing as above
  defined. Within thirty days thereafter,  the  department  shall  hold  a
  public  hearing  at  which all persons interested may be heard as to the
  propriety of the classification of such violations as rent impairing. At
  least twenty days' notice of such hearing shall be given by  publication
  in the city record or other publication in which official notices of the
  city  are  regularly  published.  Within  a  reasonable  time  after the
  hearing,  the  department  shall  make  and  publish  a  list  of  those
  violations which are classified as rent impairing. Any person interested
  may,  within  four months thereafter, seek a review by the supreme court
  of the propriety of the classification of  any  of  such  violations  as
  "Rent   Impairing"   by   a   special  proceeding  pursuant  to  article
  seventy-eight of the civil practice law and  rules.  No  other  body  or
  officer shall have the power to review said classification.
    d.  The department may at any time change the number or description of
  rent impairing violations but no such change shall be made except in the
  manner above set forth after notice and public hearing.
    3. a. If (i) the official records of the department shall note that  a
  rent  impairing  violation  exists in respect to a multiple dwelling and
  that notice of such violation has been given by the department, by mail,
  to the owner last registered with the department and (ii) such  note  of
  the  violation  is  not cancelled or removed of record within six months
  after the date of such notice of such violation,  then  for  the  period
  that such violation remains uncorrected after the expiration of said six
  months, no rent shall be recovered by any owner for any premises in such
  multiple  dwelling  used  by  a resident thereof for human habitation in
  which the condition constituting such rent impairing  violation  exists,
  provided,  however,  that if the violation is one that requires approval
  of plans by the department for the corrective work and if plans for such
  corrective work shall have been duly filed within three months from  the
  date  of  notice  of  such violation by the department to the owner last
  registered with the department,  the  six-months  period  aforementioned
  shall not begin to run until the date that plans for the corrective work
  are  approved  by  the  department;  if  plans are not filed within said
  three-months period or if so filed, they are disapproved and  amendments
  are  not duly filed within thirty days after the date of notification of
  the disapproval by the department to the person having filed the  plans,

  the six-months period shall be computed as if no plans whatever had been
  filed  under  this proviso. If a condition constituting a rent impairing
  violation exists in the part of a multiple dwelling used  in  common  by
  the residents or in the part under the control of the owner thereof, the
  violation  shall  be  deemed to exist in the respective premises of each
  resident of the multiple dwelling.
    b. The provisions of  subparagraph  a  shall  not  apply  if  (i)  the
  condition  referred  to  in  the  department's  notice to the owner last
  registered with the department did not in  fact  exist,  notwithstanding
  the  notation  thereof  in  the  records  of  the  department;  (ii) the
  condition which is the  subject  of  the  violation  has  in  fact  been
  corrected,  though  the  note  thereof  in  the  department has not been
  removed or cancelled;  (iii)  the  violation  has  been  caused  by  the
  resident  from  whom rent is sought to be collected or by members of his
  family or by his guests or by another resident of the multiple  dwelling
  or the members of the family of such other resident or by his guests, or
  (iv)  the  resident  proceeded against for rent has refused entry to the
  owner for the purpose of correcting the condition  giving  rise  to  the
  violation.
    c.  To  raise  a defense under subparagraph a in any action to recover
  rent or in any special proceeding for the recovery of possession because
  of non-payment of rent, the resident must affirmatively plead and  prove
  the  material facts under subparagraph a, and must also deposit with the
  clerk of the court in which the action or proceeding is pending  at  the
  time  of filing of the resident's answer the amount of rent sought to be
  recovered in  the  action  or  upon  which  the  proceeding  to  recover
  possession  is  based,  to be held by the clerk of the court until final
  disposition of the action or proceeding at which time the rent deposited
  shall be paid to the owner, if the owner prevails, or be returned to the
  resident if the resident prevails. Such deposit of  rent  shall  vitiate
  any  right  on  the  part  of the owner to terminate the lease or rental
  agreement of the resident because of nonpayment of rent.
    d. If a resident voluntarily pays rent or an installment of rent  when
  he  would  be  privileged  to withhold the same under subparagraph a, he
  shall not thereafter have any claim or cause of action to  recover  back
  the rent or installment of rent so paid.  A voluntary payment within the
  meaning  hereof  shall  mean  payment  other than one made pursuant to a
  judgment in an action or special proceeding.
    e. If upon the trial of any action to  recover  rent  or  any  special
  proceeding for the recovery of possession because of non-payment of rent
  it  shall  appear  that  the  resident  has  raised a defense under this
  section in bad faith, or has caused the violation or has  refused  entry
  to  the owner for the purpose of correcting the condition giving rise to
  the violation, the  court,  in  its  discretion,  may  impose  upon  the
  resident  the  reasonable costs of the owner, including counsel fees, in
  maintaining the action or proceeding not to exceed one hundred dollars.