NY A06529

Establishes a mandatory mediation and arbitration process for commercial lease renewals in New York City, applicable to leases expiring on or after July 1, 2020.

Requires landlords to provide 180 days' notice before lease expiration; first 90 days are for negotiation, with either party able to request mediation during this period.

Sets minimum 10-year renewal terms and limits grounds for lease non-renewal to specific conditions including persistent late rent payments (after three notices), illegal activity, material breach, demolition/reconstruction, unauthorized subletting, tax violations, and landlord occupancy for different business.

Mandates arbitration to determine renewal rent based on 13 factors including property maintenance costs, fair market rates for comparable properties, business longevity, location, and real estate speculation in the area; arbitrator's decision is binding except if tenant rejects it and pays maximum 10% increase over prior 12 months' average rent.

Prohibits landlord retaliation, limits security deposits to two months' rent held in interest-bearing escrow accounts, voids any lease provisions waiving tenant rights, and establishes penalties for non-compliance including damages and attorney's fees.