New York, NY - Mom and pop stores are the small businesses that make New York City great that have remained inaccessible to 1 million residents and 7 million tourists with disabilities would receive government assistance to retrofit for accessibility and indoor safety during the pandemic. Council Members Ben Kallos and Committee on Consumer Affairs Chair Andrew Cohen are introducing legislation to provide grants and low-interest loans of up to $250,000 along with education for small businesses in storefronts to make accessibility and public health improvements, coupled with securing long sought after rent reductions from landlords.
“The blight of empty storefronts has only gotten worse since the pandemic and we need to do everything we can to help them retrofit for accessibility and public health to welcome more customers with disabilities while securing lower rents. It’s a win-win-win for small business owners, customers susceptible to coronavirus or with disabilities, and even landlords,” said Council Member Ben Kallos. “Thank you to Victor Calise Commissioner of the Mayor’s Office for People with Disabilities for working with us on this program since I was elected, together we can open up the best parts of our city for everyone.”
Mom and pop storefronts have been the target of American with Disabilities Act (ADA) lawsuits filed growing year over year, both nationally and locally. Recent reporting shows that the number of such cases in New York surged more than 300 percent from 543 in 2016 to 2,338 last year. A number of these cases are filed by “frequent flyer” serial litigants who specialize in these types of “drive by” lawsuits. Small businesses are particularly vulnerable to these types of suits because they have less income to spend making ADA alterations to their spaces and less to spend on legal counsel. The worst part is that many of these lawsuits are settled costing mom and pop owners the money they could’ve spent staying open or making the accessibility improvements that are rarely required by these settlements or ever happen.
The first bill, led by Council Member Kallos would create an accessibility fund for small businesses. The fund would make grants and loans of up to $250,000 available to any small business (100 employees or less), for the purpose of renovating existing storefronts to become ADA compliant. The grants or low-interests would be made available to either the building owner or the storefront lessee. In either case, the Commissioner could require an agreement between the landlord and tenant to a decrease in rent, in proportion to the size of the grant, in return for these permanent improvements.
The second bill led by council member Cohen, would provide training and education to small businesses on compliance with the Americans with Disabilities Act. The bill would make available information for all small businesses on the various requirements under the ADA and would be updated whenever there are any changes to the current guidelines. The bill would also help small business owners complete a detailed survey of their commercial property or business website to determine improvements suggested or required in accordance with the ADA. Both bills would help to curb the onslaught of vexatious litigation against the most vulnerable business owners.
“As our city’s restaurants and bars fight for survival, providing them with government support to retrofit their businesses so they are more accessible to people with disabilities and allow greater indoor safety during the pandemic is important policy. We thank Council Member Kallos for their support and leadership on these important issues,” said Andrew Rigie, Executive Director of the New York Hospitality Alliance.
“We look forward to seeing permanent improvement to the accessibility of local small businesses. We believe that people with disabilities would love to support small businesses in their community and look forward to an equal opportunity to do just that,” said Susan Dooha, Executive Director of the Center for Independence of the Disabled of New York.
“We are thankful that Council Member Kallos has realized the precarious financial position many small businesses find themselves in and is taking active steps to aid in a growing expense for many,” said Melissa Fleischut, President & CEO of the NYS Restaurant Association. “Accessibility changes are often incredibly cost prohibitive, especially when alterations need to be made to older buildings. This program will allow for important capital to be put towards these needed changes, allowing these businesses to more easily accommodate all customers and meet all current safety standards.”
Int. No.
By Council Members Kallos and Cohen
A LOCAL LAW
To amend the administrative code of the city of New York, in relation to accessibility in small businesses
Be it enacted by the Council as follows:
Section 1. Chapter 10 of title 22 of the administrative code of the city of New York is amended by adding new section 22-1007 to read as follows:
§ 22-1007 Accessibility fund for small businesses.
a. Definitions. For the purposes of this section, the following terms have the following meanings:
Chain business. The term “chain business” means an establishment that is part of a group of four or more establishments that share a common owner or principal who owns at least 30 percent of each establishment where such establishments (i) engage in the same business or (ii) operate pursuant to franchise agreements with the same franchisor as defined in section 681 of the general business law.
Commissioner. Notwithstanding section 22-1001 of this chapter, the term “commissioner” means the commissioner of the department of small business services, the commissioner of the mayor’s office for people with disabilities or its successor agency, or any other designee of the mayor.
Small business. The term “small business” means a for-profit or not-for-profit entity, excluding government entities, that is not a chain business and that employs no more than 100 employees. The number of employees of such small business shall consist of an average of all persons that performed work for the small business for compensation on a full-time, part-time or temporary basis for all payroll periods occurring in the 90 days prior to the date on which such property owner or tenant applies for the fund set forth in subdivision b of this section, as demonstrated by the payroll documentation of such entity, in accordance with rules promulgated by the commissioner.
Storefront. The term “storefront” means a premises owned or operated by a small business that is open to the public and is a public accommodation as defined in section 12181 of title 42 of the United States code.
b. The commissioner shall, subject to appropriation, operate a program that provides loans, grants, in-kind services or in-kind materials, or some combination, to small business tenants and property owners for the purpose of making physical features of their storefront accessible to people with disabilities. Any funding provided to a small business shall not exceed 250,000 dollars in total value per storefront. No loan provided through such program shall include an annual interest rate higher than three percent.
c. 1. The commissioner shall set a timeline for the review of applications for the program operated pursuant to subdivision b, the approval or rejection of such applications, and the disbursement of the approved loan or grant amount, if applicable, which shall not exceed 90 days in total for each such application.
2. Any loan, grant, services or materials provided by the program operated pursuant to subdivision b shall be made available to the person or entity responsible for bearing the cost of the construction project that would make such storefront accessible, whether the property owner or tenant of such storefront, provided however that both the property owner and the tenant must consent to the receipt of such loan, grant, services or materials unless a prior contractual agreement between the parties requires otherwise.
3. As a condition of the receipt of a loan, grant, services or materials pursuant to subdivision b, the commissioner may require the store front’ s property owner to agree to decrease the rent charged to their tenant for the use of such storefront by half the value of such loan, grant, services or materials received, distributed across the remainder of the rental term in a manner agreed upon by such property owner and tenant.
d. The commissioner shall promulgate rules to implement the requirements of this section.
§ 2. This local law takes effect 180 days after it becomes law, except that the commissioner, as defined by subdivision a of section 22-1007 of this local law, shall take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.
SJ
LS #9004, 13913
9/1/20