S T A T E O F N E W Y O R K
________________________________________________________________________
1221
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. BING, V. LOPEZ, GLICK, MILLMAN, ROSENTHAL,
KAVANAGH, DINOWITZ, COLTON, MAISEL, WRIGHT, TITUS, ORTIZ, BROOK-KRAS-
NY, GIBSON, CASTRO, PHEFFER -- Multi-Sponsored by -- M. of A. BOYLAND,
COOK, FARRELL, GOTTFRIED, HOOPER, KELLNER, M. MILLER, PERRY, SCHIMEL
-- read once and referred to the Committee on Housing
AN ACT to amend the emergency tenant protection act of nineteen seven-
ty-four, the emergency housing rent control law, the administrative
code of the city of New York and the tax law, in relation to deregu-
lation thresholds
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 12 of subdivision a of section 5 of section 4 of
chapter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by chapter 116 of
the laws of 1997, is amended to read as follows:
(12) upon issuance of an order by the division, housing accommodations
which are: (1) occupied by persons who have a total annual income [in
excess of one hundred seventy-five thousand dollars per annum], AS
DEFINED IN AND SUBJECT TO THE LIMITATIONS AND PROCESS SET FORTH IN
SECTION FIVE-A OF THIS ACT, THAT EXCEEDS THE DEREGULATION INCOME THRESH-
OLD, AS DEFINED IN SECTION FIVE-A OF THIS ACT in each of the two preced-
ing calendar years[, as defined in and subject to the limitations and
process set forth in section five-a of this act]; and (2) have a legal
regulated rent [of two thousand dollars or more per month] THAT EQUALS
OR EXCEEDS THE DEREGULATION RENT THRESHOLD, AS DEFINED IN SECTION FIVE-A
OF THIS ACT. Provided however, that this exclusion shall not apply to
housing accommodations which became or become subject to this act (a) by
virtue of receiving tax benefits pursuant to section four hundred twen-
ty-one-a or four hundred eighty-nine of the real property tax law,
except as otherwise provided in subparagraph (i) of paragraph (f) of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00651-01-1
A. 1221 2
subdivision two of section four hundred twenty-one-a of the real proper-
ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
law.
S 2. Section 5-a of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 5-a. High income rent [decontrol] DEREGULATION. (a) 1. For purposes
of this section, annual income shall mean the federal adjusted gross
income as reported on the New York state income tax return. Total annual
income means the sum of the annual incomes of all persons whose names
are recited as the tenant or co-tenant on a lease who occupy the housing
accommodation and all other persons that occupy the housing accommo-
dation as their primary residence on other than a temporary basis,
excluding bona fide employees of such occupants residing therein in
connection with such employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
of the real property law. In the case where a housing accommodation is
sublet, the annual income of the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS TWO HUNDRED FORTY THOUSAND
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUAL-
LY ON THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH
SUBSEQUENT YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR
ALL URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND,
NY-NJ-CT-PA, AS ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND SEVEN HUNDRED
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY
ON THE FIRST DAY OF OCTOBER EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated MONTHLY rent
[is two thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREG-
ULATION RENT THRESHOLD may provide the tenant or tenants residing there-
in with an income certification form prepared by the division of housing
and community renewal on which such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of [one hundred seventy-
five thousand dollars] THE DEREGULATION INCOME THRESHOLD in each of the
two preceding calendar years. Such income certification form shall state
that the income level certified to by the tenant may be subject to
verification by the department of taxation and finance pursuant to
section one hundred seventy-one-b of the tax law, and shall not require
disclosure of any information other than whether the aforementioned
threshold has been exceeded. Such income certification form shall clear-
ly state that: (i) only tenants residing in housing accommodations which
had a legal regulated MONTHLY rent [of two thousand dollars or more per
month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD are
required to complete the certification form; (ii) that tenants have
protections available to them which are designed to prevent harassment;
A. 1221 3
(iii) that tenants are not required to provide any information regarding
their income except that which is requested on the form and may contain
such other information the division deems appropriate. The tenant or
tenants shall return the completed certification to the owner within
thirty days after service upon the tenant or tenants. In the event that
the total annual income as certified is in excess of [one hundred seven-
ty-five thousand dollars] THE DEREGULATION INCOME THRESHOLD in each such
year, the owner may file the certification with the state division of
housing and community renewal on or before June thirtieth of such year.
Upon filing such certification with the division, the division shall,
within thirty days after the filing, issue an order providing that such
housing accommodation shall not be subject to the provisions of this act
upon the expiration of the existing lease. A copy of such order shall be
mailed by regular and certified mail, return receipt requested, to the
tenant or tenants and a copy thereof shall be mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants that such tenant or tenants named on the lease
must provide the division with such information as the division and the
department of taxation and finance shall require to verify whether the
total annual income exceeds [one hundred seventy-five thousand dollars]
THE DEREGULATION INCOME THRESHOLD in each such year. The division's
notification shall require the tenant or tenants to provide the informa-
tion to the division within sixty days of service upon such tenant or
tenants and shall include a warning in bold faced type that failure to
respond will result in an order being issued by the division providing
that such housing accommodations shall not be subject to the provisions
of this act.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order providing that such housing accommodation shall
not be subject to the provisions of this act upon expiration of the
existing lease. A copy of such order shall be mailed by regular and
certified mail, return receipt requested, to the tenant or tenants and a
copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order provid-
ing that such housing accommodation shall not be subject to the
provisions of this act upon the expiration [or] OF the current lease. A
copy of such order shall be mailed by regular and certified mail, return
A. 1221 4
receipt requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to paragraph twelve of subdivision a
of section five of this act.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 3. Paragraph (m) of subdivision 2 of section 2 of chapter 274 of the
laws of 1946, constituting the emergency housing rent control law, as
amended by chapter 116 of the laws of 1997, is amended to read as
follows:
(m) upon the issuance of an order of [decontrol] DEREGULATION by the
division, housing accommodations which: (1) are occupied by persons who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION TWO-A OF THIS LAW, in excess of [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
AS DEFINED IN SECTION TWO-A OF THIS LAW in each of the two preceding
calendar years[, as defined in and subject to the limitations and proc-
ess set forth in section two-a of this law]; and (2) have a maximum rent
[of two thousand dollars or more per month].
S 4. Section 2-a of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as added by chapter 253 of the laws
of 1993, subdivision (b) and paragraphs 1 and 2 of subdivision (c) as
amended and subdivision (e) as added by chapter 116 of the laws of 1997,
is amended to read as follows:
S 2-a. (a) 1. For purposes of this section, annual income shall mean
the federal adjusted gross income as reported on the New York state
income tax return. Total annual income means the sum of the annual
incomes of all persons who occupy the housing accommodation as their
primary residence on other than a temporary basis, excluding bona fide
employees of such occupants residing therein in connection with such
employment and excluding bona fide subtenants in occupancy pursuant to
the provisions of section two hundred twenty-six-b of the real property
law. In the case where a housing accommodation is sublet, the annual
income of the sublessor shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS TWO HUNDRED FORTY THOUSAND
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUAL-
LY ON THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH
SUBSEQUENT YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR
ALL URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND,
NY-NJ-CT-PA, AS ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND SEVEN HUNDRED
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY
A. 1221 5
ON THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSE-
QUENT YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL
URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA,
AS ESTABLISHED THE PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum MONTHLY rent [is two
thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION
RENT THRESHOLD may provide the tenant or tenants residing therein with
an income certification form prepared by the division of housing and
community renewal on which such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of [one hundred seventy-
five thousand dollars] THE DEREGULATION INCOME THRESHOLD in each of the
two preceding calendar years. Such income certification form shall state
that the income level certified to by the tenant may be subject to
verification by the department of taxation and finance pursuant to
section one hundred seventy-one-b of the tax law and shall not require
disclosure of any income information other than whether the aforemen-
tioned threshold has been exceeded. Such income certification form shall
clearly state that: (i) only tenants residing in housing accommodations
which had a maximum MONTHLY rent EQUAL TO OR IN EXCESS of [two thousand
dollars or more per month] THE DEREGULATION RENT THRESHOLD are required
to complete the certification form; (ii) that tenants have protections
available to them which are designed to prevent harassment; (iii) that
tenants are not required to provide any information regarding their
income except that which is requested on the form and may contain such
other information the division deems appropriate. The tenant or tenants
shall return the completed certification to the owner within thirty days
after service upon the tenant or tenants. In the event that the total
annual income as certified is in excess of [one hundred seventy-five
thousand dollars in each such year] THE DEREGULATION INCOME THRESHOLD,
the owner may file the certification with the state division of housing
and community renewal on or before June thirtieth of such year. Upon
filing such certification with the division, the division shall, within
thirty days after the filing, issue an order of [decontrol] DEREGULATION
providing that such housing accommodations shall not be subject to the
provisions of this law as of the first day of June in the year next
succeeding the filing of the certification by the owner. A copy of such
order shall be mailed by regular and certified mail, return receipt
requested, to the tenant or tenants and a copy thereof shall be mailed
to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants that such tenant or tenants must provide the divi-
sion with such information as the division and the department of taxa-
tion and finance shall require to verify whether the total annual income
exceeds [one hundred seventy-five thousand dollars] THE DEREGULATION
INCOME THRESHOLD in each such year. The division's notification shall
A. 1221 6
require the tenant or tenants to provide the information to the division
within sixty days of service upon such tenant or tenants and shall
include a warning in bold faced type that failure to respond will result
in an order of [decontrol] DEREGULATION being issued by the division for
such housing accommodation.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order of [decontrol] DEREGULATION providing that such
housing accommodation shall not be subject to the provisions of this law
as of the first day of March in the year next succeeding the filing of
the owner's petition with the division. A copy of such order shall be
mailed by regular and certified mail, return receipt requested, to the
tenant or tenants and a copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the last day on which the tenant or
tenants were required to provide the information required by such para-
graph. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to paragraph (m) of subdivision two
of section two of this law.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 5. Subparagraph (j) of paragraph 2 of subdivision e of section
26-403 of the administrative code of the city of New York, as amended by
chapter 116 of the laws of 1997, is amended to read as follows:
(j) Upon the issuance of an order of [decontrol] DEREGULATION by the
division, housing accommodations which: (1) are occupied by persons who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION 26-403.1 OF THIS CHAPTER, in excess of
[one hundred seventy-five thousand dollars] THE DEREGULATION INCOME
THRESHOLD, AS DEFINED IN SECTION 26-403.1 OF THIS CHAPTER, per annum in
each of the two preceding calendar years[, as defined in and subject to
the limitations and process set forth in section 26-403.1 of this chap-
A. 1221 7
ter]; and (2) have a maximum rent [of two thousand dollars or more per
month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD, AS
DEFINED IN SECTION 26-403.1 OF THIS CHAPTER. Provided however, that
this exclusion shall not apply to housing accommodations which became or
become subject to this law by virtue of receiving tax benefits pursuant
to section four hundred eighty-nine of the real property tax law.
S 6. Section 26-403.1 of the administrative code of the city of New
York, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 26-403.1 High income rent [decontrol] DEREGULATION. (a) 1. For
purposes of this section, annual income shall mean the federal adjusted
gross income as reported on the New York state income tax return. Total
annual income means the sum of the annual incomes of all persons who
occupy the housing accommodation as their primary residence other than
on a temporary basis, excluding bona fide employees of such occupants
residing therein in connection with such employment and excluding bona
fide subtenants in occupancy pursuant to the provisions of section two
hundred twenty-six-b of the real property law. In the case where a hous-
ing accommodation is sublet, the annual income of the sublessor shall be
considered.
2. DEREGULATION INCOME THRESHOLD MEANS TWO HUNDRED FORTY THOUSAND
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUAL-
LY ON THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH
SUBSEQUENT YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR
ALL URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND,
NY-NJ-CT-PA, AS ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND SEVEN HUNDRED
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY
ON THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSE-
QUENT YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL
URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA,
AS ESTABLISHED THE PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum rent [is two thou-
sand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION RENT
THRESHOLD may provide the tenant or tenants residing therein with an
income certification form prepared by the division of housing and commu-
nity renewal on which such tenant or tenants shall identify all persons
referred to in subdivision (a) of this section and shall certify whether
the total annual income is in excess of [one hundred seventy-five thou-
sand dollars] THE DEREGULATION INCOME THRESHOLD in each of the two
preceding calendar years. Such income certification form shall state
that the income level certified to by the tenant may be subject to
verification by the department of taxation and finance pursuant to
section one hundred seventy-one-b of the tax law and shall not require
disclosure of any income information other than whether the aforemen-
tioned threshold has been exceeded. Such income certification form shall
clearly state that: (i) only tenants residing in housing accommodations
which have a maximum MONTHLY rent [of two thousand dollars or more per
month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD are
required to complete the certification form; (ii) that tenants have
protections available to them which are designed to prevent harassment;
(iii) that tenants are not required to provide any information regarding
A. 1221 8
their income except that which is requested on the form and may contain
such other information the division deems appropriate. The tenant or
tenants shall return the completed certification to the owner within
thirty days after service upon the tenant or tenants. In the event that
the total annual income as certified is in excess of [one hundred seven-
ty-five thousand dollars] THE DEREGULATION INCOME THRESHOLD in each such
year, the owner may file the certification with the state division of
housing and community renewal on or before June thirtieth of such year.
Upon filing such certification with the division, the division shall,
within thirty days after the filing, issue an order of [decontrol]
DEREGULATION providing that such housing accommodations shall not be
subject to the provisions of this law as of the first day of June in the
year next succeeding the filing of the certification by the owner. A
copy of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants that such tenant or tenants must provide the divi-
sion with such information as the division and the department of taxa-
tion and finance shall require to verify whether the total annual income
exceeds [one hundred seventy-five thousand dollars] THE DEREGULATION
INCOME THRESHOLD in each such year. The division's notification shall
require the tenant or tenants to provide the information to the division
within sixty days of service upon such tenant or tenants and shall
include a warning in bold faced type that failure to respond will result
in an order of [decontrol] DEREGULATION being issued by the division for
such housing accommodation.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order of [decontrol] DEREGULATION providing that such
housing accommodation shall not be subject to the provisions of this law
as of the first day of March in the year next succeeding the filing of
the owner's petition with the division. A copy of such order shall be
mailed by regular and certified mail, return receipt requested, to the
tenant or tenants and a copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the last day on which the tenant or
A. 1221 9
tenants were required to provide the information required by such para-
graph. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to subparagraph (j) of paragraph two
of subdivision e of section 26-403 of this [code] CHAPTER.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 7. Section 26-504.1 of the administrative code of the city of New
York, as amended by chapter 116 of the laws of 1997, is amended to read
as follows:
S 26-504.1 Exclusion of accommodations of high income renters. Upon
the issuance of an order by the division, "housing accommodations" shall
not include housing accommodations which: (1) are occupied by persons
who have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITA-
TIONS AND PROCESS SET FORTH IN SECTION 26-504.3 OF THIS CHAPTER, in
excess of [one hundred seventy-five thousand dollars per annum] THE
DEREGULATION INCOME THRESHOLD, AS DEFINED IN SECTION 26-504.3 OF THIS
CHAPTER, for each of the two preceding calendar years[, as defined in
and subject to the limitations and process set forth in section 26-504.3
of this chapter]; and (2) have a legal regulated MONTHLY rent [of two
thousand dollars or more per month] THAT EQUALS OR EXCEEDS THE DEREGU-
LATION RENT THRESHOLD, AS DEFINED IN SECTION 26-504.3 OF THIS CHAPTER.
Provided, however, that this exclusion shall not apply to housing accom-
modations which became or become subject to this law (a) by virtue of
receiving tax benefits pursuant to section four hundred twenty-one-a or
four hundred eighty-nine of the real property tax law, except as other-
wise provided in subparagraph (i) of paragraph (f) of subdivision two of
section four hundred twenty-one-a of the real property tax law, or (b)
by virtue of article seven-C of the multiple dwelling law.
S 8. Section 26-504.3 of the administrative code of the city of New
York, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 26-504.3 High income rent [decontrol] DEREGULATION. (a) 1. For
purposes of this section, annual income shall mean the federal adjusted
gross income as reported on the New York state income tax return. Total
annual income means the sum of the annual incomes of all persons whose
names are recited as the tenant or co-tenant on a lease who occupy the
housing accommodation and all other persons that occupy the housing
accommodation as their primary residence on other than a temporary
basis, excluding bona fide employees of such occupants residing therein
in connection with such employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
A. 1221 10
of the real property law. In the case where a housing accommodation is
sublet, the annual income of the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS TWO HUNDRED FORTY THOUSAND
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUAL-
LY ON THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH
SUBSEQUENT YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR
ALL URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND,
NY-NJ-CT-PA, AS ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS TWO THOUSAND SEVEN HUNDRED
DOLLARS. FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY
ON THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSE-
QUENT YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL
URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA,
AS ESTABLISHED THE PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated rent [is two
thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION
RENT THRESHOLD may provide the tenant or tenants residing therein with
an income certification form prepared by the division of housing and
community renewal on which such tenant or tenants shall identify all
persons referred to in subdivision (a) of this section and shall certify
whether the total annual income is in excess of [one hundred seventy-
five thousand dollars] THE DEREGULATION INCOME THRESHOLD in each of the
two preceding calendar years. Such income certification form shall state
that the income level certified to by the tenant may be subject to
verification by the department of taxation and finance pursuant to
section one hundred seventy-one-b of the tax law and shall not require
disclosure of any income information other than whether the aforemen-
tioned threshold has been exceeded. Such income certification form shall
clearly state that: (i) only tenants residing in housing accommodations
which have a legal regulated MONTHLY rent [of two thousand dollars or
more per month], THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD
are required to complete the certification form; (ii) that tenants have
protections available to them which are designed to prevent harassment;
(iii) that tenants are not required to provide any information regarding
their income except that which is requested on the form and may contain
such other information the division deems appropriate. The tenant or
tenants shall return the completed certification to the owner within
thirty days after service upon the tenant or tenants. In the event that
the total annual income as certified is in excess of [one hundred seven-
ty-five thousand dollars] THE DEREGULATION INCOME THRESHOLD in each such
year, the owner may file the certification with the state division of
housing and community renewal on or before June thirtieth of such year.
Upon filing such certification with the division, the division shall,
within thirty days after the filing, issue an order providing that such
housing accommodation shall not be subject to the provisions of this act
upon the expiration of the existing lease. A copy of such order shall be
mailed by regular and certified mail, return receipt requested, to the
tenant or tenants and a copy thereof shall be mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
A. 1221 11
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants named on the lease that such tenant or tenants
must provide the division with such information as the division and the
department of taxation and finance shall require to verify whether the
total annual income exceeds [one hundred seventy-five thousand dollars]
THE DEREGULATION INCOME THRESHOLD in each such year. The division's
notification shall require the tenant or tenants to provide the informa-
tion to the division within sixty days of service upon such tenant or
tenants and shall include a warning in bold faced type that failure to
respond will result in an order being issued by the division providing
that such housing accommodation shall not be subject to the provisions
of this law.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order providing that such housing accommodation shall
not be subject to the provisions of this law upon the expiration of the
existing lease. A copy of such order shall be mailed by regular and
certified mail, return receipt requested, to the tenant or tenants and a
copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order provid-
ing that such housing accommodation shall not be subject to the
provisions of this law upon the expiration of the current lease. A copy
of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to section 26-504.1 of this [code]
CHAPTER.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
A. 1221 12
S 9. Paragraph (b) of subdivision 3 of section 171-b of the tax law,
as amended by chapter 116 of the laws of 1997, is amended to read as
follows:
(b) The department, when requested by the division of housing and
community renewal, shall verify the total annual income of all persons
residing in housing accommodations as their primary residence subject to
rent regulation and shall notify the commissioner of the division of
housing and community renewal as may be appropriate whether the total
annual income exceeds [one hundred seventy-five thousand dollars per
annum] THE APPLICABLE DEREGULATION INCOME THRESHOLD in each of the two
preceding calendar years. No other information regarding the annual
income of such persons shall be provided.
S 10. This act shall take effect immediately, provided, however, that:
(a) the amendments to paragraph 12 of subdivision a of section 5 and
section 5-a of section 4 of the emergency tenant protection act of nine-
teen seventy-four made by sections one and two of this act, respective-
ly, shall expire on the same date as such act expires and shall not
affect the expiration of such act as provided in section 17 of chapter
576 of the laws of 1974;
(b) the amendments to paragraph (m) of subdivision 2 of section 2 and
section 2-a of the emergency housing rent control law made by sections
three and four of this act, respectively, shall expire on the same date
as such law expires and shall not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274 of the laws of
1946;
(c) the amendments to sections 26-403 and 26-403.1 of the city rent
and rehabilitation law made by sections five and six of this act,
respectively, shall remain in full force and effect only as long as the
public emergency requiring the regulation and control of residential
rents and evictions continues, as provided in subdivision 3 of section 1
of the local emergency housing rent control act; and
(d) the amendments to sections 26-504.1 and 26-504.3 of chapter 4 of
title 26 of the administrative code of the city of New York made by
sections seven and eight of this act, respectively, shall expire on the
same date as such law expires and shall not affect the expiration of
such law as provided under section 26-520 of such law.