NY A08340

Establishes mandatory mediation and arbitration procedures for commercial lease renewals in New York City, requiring landlords to provide 180 days' notice before lease expiration and giving tenants the right to dispute non-renewal decisions.

Requires lease renewals to be for a minimum 10-year term and prohibits landlords from refusing renewal except on specific grounds including persistent non-payment, illegal activity, substantial breach of lease terms, planned demolition/reconstruction, or landlord's own business use (with compensation requirements).

Mandates a three-step process: 90 days of negotiation, optional mediation period, and binding arbitration where arbitrators determine fair market rent based on 13 factors including maintenance costs, comparable property rates, business longevity, and local real estate speculation patterns.

Caps security deposits at two months' rent, requires escrow in interest-bearing accounts, and prohibits landlord retaliation against tenants asserting rights under the chapter; violations subject landlords to actual and punitive damages.

Applies to all commercial lease renewals for premises with expiration dates on or after July 1, 2017, and includes provisions for tenant "hold-over" rights at up to 10% above prior rent if tenant rejects arbitrator's decision.