S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6772--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 2023
                                ___________
 
 Introduced  by  M.  of  A. BURGOS, GIBBS, HYNDMAN, BENEDETTO, ZEBROWSKI,
   SLATER, ZACCARO -- read once and referred to the Committee on  Housing
   -- recommitted to the Committee on Housing in accordance with Assembly
   Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  certain housing accommodations; and to amend chapter 576
   of the laws of 1974, constituting the emergency tenant protection  act
   of nineteen seventy-four, in relation to certain hardship provisions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision c of section 26-511 of the administrative  code
 of  the city of New York is amended by adding a new paragraph 16 to read
 as follows:
   (16) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS  CHAP-
 TER  TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT TO THIS CHAP-
 TER HAS BEEN VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN  YEARS
 OR  MORE  PRIOR TO VACANCY, AND THE OWNER CAN DEMONSTRATE RESTORATION OF
 THE UNIT AS SET FORTH IN SECTION 26-511.2 OF THIS CHAPTER, THE NEW LEGAL
 REGULATED RENT SHALL BE THE RENT AGREED TO BY THE OWNER AND FIRST TENANT
 AFTER SUCH RESTORATION AND RESERVED IN A LEASE OR  OTHER  RENTAL  AGREE-
 MENT; PROVIDED THAT SUCH NEW LEGAL REGULATED RENT:  (I) SHALL NOT EXCEED
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED; AND (II)  MAY  BE
 ADJUSTED  ON  AUDIT BY THE DIVISION UNDER SECTION 26-511.2 OF THIS CHAP-
 TER, OR ON APPLICATION OF A TENANT OR OWNER UNDER  SECTION  26-513.1  OF
 THIS  CHAPTER.  THE  LEGAL  REGULATED  RENT ADJUSTMENT SET FORTH IN THIS
 PARAGRAPH SHALL BE KNOWN AS  THE  LOCAL  REGULATED  HOUSING  RESTORATION
 ADJUSTMENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10320-18-4
 A. 6772--A                          2
              

 
   §  2.  The  administrative  code of the city of New York is amended by
 adding a new section 26-511.2 to read as follows:
   § 26-511.2 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  A. THE
 DIVISION  OF  HOUSING AND COMMUNITY RENEWAL, THE "DIVISION" SHALL ESTAB-
 LISH A NOTIFICATION PROCEDURE AND  DOCUMENTATION  SUBMISSION  GUIDELINES
 FOR  THE  LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.  DOCUMENTATION
 TO QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT  SHALL
 BE LIMITED TO:
   (1)  XRF TEST RESULTS OR OTHER DOCUMENTATION DEMONSTRATING A LEAD-FREE
 HOUSING ACCOMMODATION UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION PLANS OR SIMILAR SUBMISSIONS TO THE
 LOCAL BUILDING DEPARTMENT IN CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES OR CERTIFICATIONS;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7) EVIDENCE OF RENTING TO A HOUSING SUBSIDY VOUCHER  HOLDER,  OR  THE
 SECTION  8  VOUCHER  PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED;
   (8)  EVIDENCE  OF  RENTING  TO  A  HOUSING  SUBSIDY VOUCHER HOLDER, OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SECTION, A FORM
 TO BE PROMULGATED BY THE DIVISION AND  SIGNED  BY  THE  PREVIOUS  TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION  ADJUSTMENT  WAS  VOLUNTARY  AND  NOT  THE RESULT OF UNLAWFUL OWNER
 HARASSMENT. IN CONSIDERING THE SUFFICIENCY OF  ALTERNATE  DOCUMENTATION,
 AND  NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION, VACATUR
 SHALL BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT  WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC COMMUNICATIONS, RECORDINGS, OR OTHER  EVIDENCE  OF  VOLUNTARY
 VACATUR,  OR  (III)  THE OWNER DEMONSTRATES THE PREVIOUS TENANT DIED AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B. THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT  SHALL  NOT  BE
 PERMITTED:
   (1)  FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2) FOR UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH  PERIOD  AFTER
 DETERMINATION  BY  THE  DIVISION  THAT THE OWNER HAS ENGAGED IN UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT;
   (3) FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND  DEVEL-
 OPMENT'S ALTERNATIVE ENFORCEMENT PROGRAM; OR
   (4) AFTER AN UNLAWFUL EVICTION.
   C.  THE DIVISION SHALL ESTABLISH AN AUDIT PROCESS TO REVIEW A PERCENT-
 AGE, AS ESTABLISHED BY THE  DIVISION,  OF  HOUSING  ACCOMMODATIONS  THAT
 REGISTER  ADJUSTED LEGAL REGULATED RENTS UNDER THE LOCAL REGULATED HOUS-
 ING RESTORATION ADJUSTMENT.   THE DIVISION'S ESTABLISHED  AUDIT  PROCESS
 SHALL BE SUBJECT TO THE FOLLOWING REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET  FORTH IN SUBDIVISION A OF THIS SECTION HAS BEEN SUBMITTED; AND (II)
 UNLESS RENTED TO A HOUSING SUBSIDY VOUCHER HOLDER, CONFIRMATION THAT THE
 UNIT'S AGREED RENT DOES NOT EXCEED THE SECTION 8 VOUCHER PAYMENT  STAND-
 ARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE
 A. 6772--A                          3
 
 AND  LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED.  SUCH AUDIT SHALL BE INITIATED WITHIN  ONE  YEAR  OF
 THE  FILING OF AN ANNUAL APARTMENT REGISTRATION INDICATING AN ADJUSTMENT
 TO  THE  LEGAL REGULATED RENT UNDER THE LOCAL REGULATED HOUSING RESTORA-
 TION ADJUSTMENT; AND
   (2) IF AN AUDIT UNDER THIS SUBDIVISION DETERMINES THAT  (I)  AN  OWNER
 HAS  FAILED  TO  SUBMIT DOCUMENTATION SET FORTH IN SUBDIVISION A OF THIS
 SECTION AND THE OWNER THEN FAILS TO  SUBMIT  ANY  MISSING  DOCUMENTATION
 AFTER  SIXTY  DAYS'  WRITTEN NOTICE FROM THE DIVISION, OR (II) THE LOCAL
 HOUSING RESTORATION ADJUSTMENT EXCEEDS THE  SECTION  8  VOUCHER  PAYMENT
 STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME
 SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME
 THE  LEASE WAS EXECUTED, THE DIVISION SHALL SET THE SUBJECT UNIT'S LEGAL
 REGULATED RENT AT AN AMOUNT EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION
 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY  FOR
 A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT  AT  THE TIME THE LEASE WAS EXECUTED, EXCEPT THAT THE LEGAL REGU-
 LATED RENTS FOR UNITS SUBJECT  TO  HOUSING  SUBSIDY  VOUCHERS  SHALL  BE
 ESTABLISHED  AT THE CONTRACT RENT AMOUNT APPROVED BY THE AGENCY ADMINIS-
 TERING THE VOUCHER.
   (3) ANY REQUIRED REFUNDS SHALL BE  MADE  IN  ACCORDANCE  WITH  SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT  TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS OR
 THAT ARE IN COMMUNITIES OF NEED, THE  DIVISION  SHALL  ESTABLISH  INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING  PROVIDERS  WHO  RENT  TO HOUSING SUBSIDY VOUCHER HOLDERS LOCATED IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E. ACCESS TO THE DOCUMENTATION SUBMITTED AS PART OF  THE  LOCAL  REGU-
 LATED  HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME LAWS
 GOVERNING ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH  THE
 DIVISION.
   §  3.  The  administrative  code of the city of New York is amended by
 adding a new section 26-513.1 to read as follows:
   § 26-513.1 APPLICATION  FOR  ADJUSTMENT  OF  LOCAL  REGULATED  HOUSING
 RESTORATION  ADJUSTMENT.  A.  THE TENANT OF A HOUSING ACCOMMODATION THAT
 WAS VACANT ON, OR BECAME VACANT AFTER,  JUNE  14,  2019,  AND  HAS  BEEN
 SUBJECT  TO THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE
 WITH THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL WITHIN  120  DAYS
 AFTER  NOTICE  HAS  BEEN RECEIVED UNDER SUBDIVISION C OF THIS SECTION AN
 APPLICATION FOR THE ADJUSTMENT OF THE RENT  FOR  SUCH  HOUSING  ACCOMMO-
 DATION. SUCH APPLICATIONS SHALL BE SUBJECT TO THE FOLLOWING:
   (1)  IN  THE  APPLICATION, THE TENANT MUST ALLEGE THAT THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE SECTION 8  VOUCHER
 PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF
 THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT
 THE TIME THE LEASE WAS EXECUTED.
   (2) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION,  THE
 COMMISSIONER  SHALL  ONLY  CONSIDER WHETHER THE SUBJECT RENT EXCEEDS THE
 SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY  A  LOCAL  PUBLIC  HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED.
   (3) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO  AN  APPLICATION
 UNDER  THIS  SECTION  SHALL  BE GIVEN AN OPPORTUNITY TO SUBMIT A WRITTEN
 ANSWER TO ANY APPLICATION.
 A. 6772--A                          4
 
   (4) WHEN THE  LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT  RENT
 AMOUNT  IS  DETERMINED  TO EXCEED THE SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE  WAS  EXECUTED,  THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL
 SHALL ORDER THAT THE LEGAL REGULATED RENT FOR THE SUBJECT UNIT SHALL  BE
 EQUAL  TO SEVENTY-FIVE PERCENT OF THE SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE  WAS  EXECUTED;  EXCEPT  THAT  THE LEGAL REGULATED RENTS FOR UNITS
 SUBJECT TO HOUSING SUBSIDY VOUCHERS SHALL BE EQUAL TO THE CONTRACT  RENT
 AMOUNT  APPROVED BY THE LOCAL HOUSING AUTHORITY THAT ISSUES THE VOUCHER.
 ANY REQUIRED REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR AS  A  CREDIT
 AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   B.  NOTWITHSTANDING  SUBDIVISION  A OF THIS SECTION, PROVIDED THAT THE
 OWNER HAS SUBMITTED TO THE DIVISION  DOCUMENTATION  IN  ACCORDANCE  WITH
 SUBDIVISION  A  OF  SECTION 26-511.2 OF THIS CHAPTER, THE DIVISION SHALL
 ONLY DETERMINE WHETHER THE TENANCY  IS  SUBJECT  TO  A  HOUSING  SUBSIDY
 VOUCHER  AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT AFTER
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT EXCEEDS THE SECTION 8
 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR  A
 UNIT  OF  THE  SAME  SIZE  LOCATED  WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT AT THE TIME THE LEASE WAS EXECUTED.  ANY DOCUMENTATION  DEFICIEN-
 CIES  SHALL  BE  RESOLVED THROUGH THE AUDIT PROCESS SET FORTH IN SECTION
 26-511.2 OF THIS CHAPTER.
   C. IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE  LEGAL
 RENT  WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING BY CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE  TENANT  HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING  ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL THAT THE LOCAL REGULATED  HOUSING  RESTORATION
 ADJUSTMENT  WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL REGU-
 LATED RENT, A DESCRIPTION OF WORK COMPLETED, THE  BUILDING  ADDRESS  AND
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED, AND SUCH TENANT'S
 RIGHT TO FILE AN APPLICATION CHALLENGING THE NEW LEGAL REGULATED RENT OF
 SUCH HOUSING ACCOMMODATION.
   § 4. Paragraph 5 of subdivision d of section 6 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 102 of the laws of
 1984, is amended and a new paragraph 6 is added to read as follows:
   (5) as an alternative to the hardship application provided under para-
 graph four of this subdivision, owners of buildings acquired by the same
 owner or a related entity owned by the same principals three years prior
 to the date of application may apply to the division  for  increases  in
 excess  of the level of applicable guideline increases established under
 this law based on a finding by  the  commissioner  that  such  guideline
 increases  are  not sufficient to enable the owner to maintain an annual
 gross rent income for such building which exceeds the  annual  operating
 expenses  of  such  building  by a sum equal to at least five percent of
 such gross rent. For the purposes of this paragraph, operating  expenses
 shall  consist  of  the actual, reasonable, costs of fuel, labor, utili-
 ties, taxes, other than  income  or  corporate  franchise  taxes,  fees,
 permits,  necessary  contracted services and non-capital repairs, insur-
 A. 6772--A                          5
 
 ance, parts and supplies, management fees and other administrative costs
 and mortgage interest. For the  purposes  of  this  paragraph,  mortgage
 interest  shall  be  deemed  to  mean  interest  on a bona fide mortgage
 including  an allocable portion of charges related thereto.  Criteria to
 be considered in determining a bona fide mortgage other than an institu-
 tional mortgage shall include; condition of the  property,  location  of
 the  property,  the existing mortgage market at the time the mortgage is
 placed, the term of the mortgage, the amortization rate,  the  principal
 amount  of  the mortgage, security and other terms and conditions of the
 mortgage. The commissioner shall set a rental value for any  unit  occu-
 pied  by the owner or a person related to the owner or unoccupied at the
 owner's choice for more than one month at the last regulated  rent  plus
 the minimum number of guidelines increases or, if no such regulated rent
 existed  or  is  known,  the commissioner shall impute a rent consistent
 with other rents in the building. The amount of hardship increase  shall
 be  such  as may be required to maintain the annual gross rent income as
 provided by this paragraph. The division  shall  not  grant  a  hardship
 application  under  this paragraph or paragraph four of this subdivision
 for a period of three years subsequent to granting a  hardship  applica-
 tion  under  the  provisions  of  this  paragraph. The collection of any
 increase in the rent for any  housing  accommodation  pursuant  to  this
 paragraph  shall  not  exceed six percent in any year from the effective
 date of the order granting the increase over the rent set forth  in  the
 schedule  of gross rents, with collectability of any dollar excess above
 said sum to be spread forward in similar increments  and  added  to  the
 rent  as  established  or  set  in future years. No application shall be
 approved unless the owner's equity in such building exceeds five percent
 of: (i) the arms length purchase price of the property; (ii) the cost of
 any capital improvements  for  which  the  owner  has  not  collected  a
 surcharge; (iii) any repayment of principal of any mortgage or loan used
 to  finance the purchase of the property or any capital improvements for
 which the owner has not collected a surcharge; and (iv) any increase  in
 the  equalized  assessed value of the property which occurred subsequent
 to the first valuation of the property after purchase by the owner.  For
 the purposes of this paragraph, owner's equity shall mean the sum of (i)
 the purchase price of the property less the principal of any mortgage or
 loan  used to finance the purchase of the property, (ii) the cost of any
 capital improvement for which the owner has not  collected  a  surcharge
 less the principal of any mortgage or loan used to finance said improve-
 ment,  (iii) any repayment of the principal of any mortgage or loan used
 to finance the purchase of the property or any capital  improvement  for
 which  the owner has not collected a surcharge, and (iv) any increase in
 the equalized assessed value of the property which  occurred  subsequent
 to  the  first valuation of the property after purchase by the owner[.];
 OR
   (6) PROVIDES THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER
 TO THE CONTRARY, WHEN A HOUSING ACCOMMODATION SUBJECT  TO  THIS  CHAPTER
 HAS  BEEN  VACATED AFTER CONTINUOUS TENANCY OR OCCUPANCY OF TEN YEARS OR
 MORE PRIOR TO VACANCY, AND THE OWNER CAN DEMONSTRATE RESTORATION OF  THE
 UNIT  AS  SET FORTH IN SUBDIVISION (A-1) OF SECTION TEN OF THIS CHAPTER,
 THE NEW LEGAL REGULATED RENT SHALL BE THE RENT AGREED TO  BY  THE  OWNER
 AND FIRST TENANT AFTER SUCH RESTORATION AND RESERVED IN A LEASE OR OTHER
 RENTAL  AGREEMENT;  PROVIDED  THAT  SUCH NEW LEGAL REGULATED RENT:   (I)
 SHALL NOT EXCEED THE SECTION 8 VOUCHER PAYMENT  STANDARD  ADOPTED  BY  A
 LOCAL  PUBLIC  HOUSING  AGENCY  FOR  A UNIT OF THE SAME SIZE AND LOCATED
 WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME  THE  LEASE  WAS
 A. 6772--A                          6

 EXECUTED; AND (II) MAY BE ADJUSTED ON AUDIT BY THE DIVISION UNDER SUBDI-
 VISION  (A-1)  OF  SECTION  TEN  OF THIS CHAPTER, OR ON APPLICATION OF A
 TENANT OR OWNER UNDER SUBDIVISION D-1 OF SECTION NINE OF  THIS  CHAPTER.
 THE LEGAL REGULATED RENT ADJUSTMENT SET FORTH IN THIS PARAGRAPH SHALL BE
 KNOWN AS THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT.
   §  5.  Section  10  of  section  4 of chapter 576 of the laws of 1974,
 constituting the emergency tenant protection act  of  nineteen  seventy-
 four is amended by adding a new subdivision (a-1) to read as follows:
   (A-1)  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH A
 NOTIFICATION PROCEDURE AND DOCUMENTATION SUBMISSION GUIDELINES  FOR  THE
 LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT.  A. DOCUMENTATION TO
 QUALIFY FOR THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT SHALL  BE
 LIMITED TO:
   (1)  XRF TEST RESULTS OR OTHER DOCUMENTATION DEMONSTRATING A LEAD-FREE
 HOUSING ACCOMMODATION UNDER APPLICABLE LOCAL DEFINITIONS;
   (2) ANY REQUIRED TENANT PROTECTION PLANS OR SIMILAR SUBMISSIONS TO THE
 LOCAL BUILDING DEPARTMENT IN CONNECTION WITH SUCH RESTORATION;
   (3) ANY REQUIRED CONTRACTOR LICENSES OR CERTIFICATIONS;
   (4) LIST AND SPECIFICATIONS OF NEW ELECTRIC APPLIANCES INSTALLED;
   (5) BEFORE AND AFTER PHOTOS;
   (6) LEASE OR RENTAL AGREEMENT LISTING NEW LEGAL REGULATED RENT;
   (7) EVIDENCE OF RENTING TO A HOUSING SUBSIDY VOUCHER  HOLDER,  OR  THE
 SECTION  8  VOUCHER  PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP  CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED;
   (8)  EVIDENCE  OF  RENTING  TO  A  HOUSING  SUBSIDY VOUCHER HOLDER, OR
 DOCUMENTATION CONFIRMING THAT, AS OF THE DATE OF THE COMMENCEMENT OF THE
 INCOMING TENANT'S LEASE, ANY PHYSICAL CONDITION WITHIN THE UNIT THAT WAS
 THE BASIS FOR A PREVIOUSLY ISSUED VIOLATION HAS BEEN CORRECTED; AND
   (9) FOR UNITS VACATED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION,  A
 FORM TO BE PROMULGATED BY THE DIVISION AND SIGNED BY THE PREVIOUS TENANT
 AFFIRMING THAT THE VACATUR PRIOR TO THE LOCAL REGULATED HOUSING RESTORA-
 TION  ADJUSTMENT  WAS  VOLUNTARY  AND  NOT  THE RESULT OF UNLAWFUL OWNER
 HARASSMENT. IN CONSIDERING THE SUFFICIENCY OF  ALTERNATE  DOCUMENTATION,
 AND  NOTWITHSTANDING OTHER POTENTIALLY SUFFICIENT DOCUMENTATION, VACATUR
 SHALL BE PRESUMED VOLUNTARY AND NOT THE RESULT OF OWNER HARASSMENT  WHEN
 (I)  THE  OWNER  RECOVERED  POSSESSION  OF  THE  UNIT  THROUGH  JUDICIAL
 PROCEEDINGS, (II) THE OWNER DEMONSTRATES ABANDONMENT OF THE UNIT THROUGH
 ELECTRONIC COMMUNICATIONS, RECORDINGS, OR OTHER  EVIDENCE  OF  VOLUNTARY
 VACATUR,  OR  (III)  THE OWNER DEMONSTRATES THE PREVIOUS TENANT DIED AND
 THE UNIT WAS NOT OCCUPIED BY A LAWFUL SUCCESSOR.
   B. THE LOCAL REGULATED HOUSING RESTORATION  ADJUSTMENT  SHALL  NOT  BE
 PERMITTED:
   (1)  FOR UNITS THAT ARE RENTED WITHIN A TWENTY-FOUR-MONTH PERIOD AFTER
 AN ARM'S LENGTH TRANSFER OF OWNERSHIP;
   (2) FOR UNITS THAT ARE RENTED WITHIN A THIRTY-SIX-MONTH  PERIOD  AFTER
 DETERMINATION  BY  THE  DIVISION  THAT THE OWNER HAS ENGAGED IN UNLAWFUL
 HARASSMENT WITH RESPECT TO THE UNIT;
   (3) FOR UNITS IN BUILDINGS SUBJECT TO HOUSING PRESERVATION AND  DEVEL-
 OPMENT'S ALTERNATIVE ENFORCEMENT PROGRAM; OR
   (4) AFTER AN UNLAWFUL EVICTION.
   C.  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH AN
 AUDIT PROCESS TO REVIEW A PERCENTAGE, AS ESTABLISHED BY THE DIVISION, OF
 HOUSING ACCOMMODATIONS THAT  REGISTER  ADJUSTED  LEGAL  REGULATED  RENTS
 UNDER  THE  LOCAL  REGULATED HOUSING RESTORATION ADJUSTMENT.   THE DIVI-
 A. 6772--A                          7

 SION'S ESTABLISHED AUDIT PROCESS  SHALL  BE  SUBJECT  TO  THE  FOLLOWING
 REQUIREMENTS:
   (1) ANY AUDIT SHALL BE LIMITED TO: (I) CONFIRMATION THAT DOCUMENTATION
 SET  FORTH  IN  PARAGRAPH  A OF THIS SUBDIVISION HAS BEEN SUBMITTED; AND
 (II) UNLESS RENTED TO A HOUSING  SUBSIDY  VOUCHER  HOLDER,  CONFIRMATION
 THAT  THE  UNITS  AGREED UPON RENT AS RESERVED IN A LEASE AGREEMENT DOES
 NOT EXCEED THE SECTION 8 VOUCHER PAYMENT STANDARD  ADOPTED  BY  A  LOCAL
 PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE
 SAME  ZIP  CODE  THAT  WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED.
 SUCH AUDIT SHALL BE INITIATED WITHIN ONE YEAR OF THE FILING OF AN ANNUAL
 APARTMENT REGISTRATION INDICATING AN ADJUSTMENT TO THE  LEGAL  REGULATED
 RENT UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT; AND
   (2)  IF  AN AUDIT UNDER THIS SUBDIVISION DETERMINES THAT: (I) AN OWNER
 HAS FAILED TO SUBMIT DOCUMENTATION SET FORTH IN SUBDIVISION  A  OF  THIS
 SECTION  AND  THE  OWNER  THEN FAILS TO SUBMIT ANY MISSING DOCUMENTATION
 AFTER SIXTY DAYS' WRITTEN NOTICE FROM THE DIVISION; OR  (II)  THE  LOCAL
 HOUSING  RESTORATION  ADJUSTMENT  EXCEEDS  THE SECTION 8 VOUCHER PAYMENT
 STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME
 SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT THE TIME
 THE LEASE WAS EXECUTED, THE DIVISION SHALL SET THE SUBJECT UNIT'S  LEGAL
 REGULATED RENT AT AN AMOUNT EQUAL TO SEVENTY-FIVE PERCENT OF THE SECTION
 8  VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR
 A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN
 EFFECT AT THE TIME THE LEASE WAS EXECUTED, PROVIDED, HOWEVER,  THAT  THE
 LEGAL  REGULATED  RENTS  FOR  UNITS  SUBJECT TO HOUSING SUBSIDY VOUCHERS
 SHALL BE ESTABLISHED AT THE CONTRACT RENT AMOUNT APPROVED BY THE  AGENCY
 ADMINISTERING THE VOUCHER.
   (3)  ANY  REQUIRED  REFUNDS  SHALL  BE MADE IN ACCORDANCE WITH SECTION
 26-513.1 OF THIS CHAPTER.
   D. TO ENCOURAGE RENTAL OF UNITS SUBJECT TO A LOCAL HOUSING RESTORATION
 ADJUSTMENT TO INDIVIDUALS AND FAMILIES WITH HOUSING SUBSIDY VOUCHERS  OR
 THAT  ARE  IN  COMMUNITIES  OF NEED, THE DIVISION SHALL ESTABLISH INCEN-
 TIVES, IN ADDITION TO THOSE ALREADY CONTAINED IN THIS SECTION, FOR HOUS-
 ING PROVIDERS WHO RENT TO HOUSING SUBSIDY  VOUCHER  HOLDERS  LOCATED  IN
 VERY LOW- AND LOW-INCOME ZIP CODES.
   E.  ACCESS  TO  THE DOCUMENTATION SUBMITTED AS PART OF THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT SHALL BE GOVERNED BY THE SAME  LAWS
 GOVERNING  ACCESS TO BUILDING AND APARTMENT REGISTRATIONS FILED WITH THE
 DIVISION.
   § 6. Section 9 of section 4 of  chapter  576  of  the  laws  of  1974,
 constituting  the  emergency  tenant protection act of nineteen seventy-
 four is amended by adding a new subdivision d-1 to read as follows:
   D-1. (1) THE TENANT OF A HOUSING ACCOMMODATION THAT WAS VACANT ON,  OR
 BECAME  VACANT  AFTER,  JUNE 14, 2019, AND HAS BEEN SUBJECT TO THE LOCAL
 REGULATED HOUSING RESTORATION ADJUSTMENT, MAY FILE WITH THE COMMISSIONER
 WITHIN 120 DAYS AFTER NOTICE HAS BEEN RECEIVED UNDER PARAGRAPH THREE  OF
 THIS  SUBDIVISION AN APPLICATION FOR THE ADJUSTMENT OF THE RENT FOR SUCH
 HOUSING ACCOMMODATION.   SUCH  APPLICATIONS  SHALL  BE  SUBJECT  TO  THE
 FOLLOWING:
   (I)  IN  THE  APPLICATION, THE TENANT MUST ALLEGE THAT THE LOCAL REGU-
 LATED HOUSING RESTORATION ADJUSTMENT RENT EXCEEDS THE SECTION 8  VOUCHER
 PAYMENT  STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF
 THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN EFFECT AT
 THE TIME THE LEASE WAS EXECUTED;
   (II) IN DETERMINING AN APPLICATION FILED PURSUANT TO THIS SECTION, THE
 COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ONLY CONSIDER WHETH-
 A. 6772--A                          8
 
 ER THE SUBJECT RENT EXCEEDS  THE  SECTION  8  VOUCHER  PAYMENT  STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED  WITHIN  THE  SAME  ZIP  CODE THAT WAS IN EFFECT AT THE TIME THE
 LEASE WAS EXECUTED;
   (III) THE OWNER OF THE HOUSING ACCOMMODATION SUBJECT TO AN APPLICATION
 UNDER  THIS  SECTION  SHALL  BE GIVEN AN OPPORTUNITY TO SUBMIT A WRITTEN
 ANSWER TO ANY APPLICATION; AND
   (IV) WHEN THE LOCAL  REGULATED  HOUSING  RESTORATION  ADJUSTMENT  RENT
 AMOUNT  IS  DETERMINED  TO EXCEED THE SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE  WAS  EXECUTED,  THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL
 SHALL ORDER THAT THE LEGAL REGULATED RENT FOR THE SUBJECT UNIT SHALL  BE
 EQUAL  TO SEVENTY-FIVE PERCENT OF THE SECTION 8 VOUCHER PAYMENT STANDARD
 ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A UNIT OF THE SAME SIZE AND
 LOCATED WITHIN THE SAME ZIP CODE THAT WAS IN  EFFECT  AT  THE  TIME  THE
 LEASE  WAS  EXECUTED;  PROVIDED, HOWEVER, THAT THE LEGAL REGULATED RENTS
 FOR UNITS SUBJECT TO HOUSING SUBSIDY VOUCHERS  SHALL  BE  EQUAL  TO  THE
 CONTRACT RENT AMOUNTS APPROVED BY THE LOCAL HOUSING AGENCY ADMINISTERING
 THE VOUCHER.  ANY REQUIRED REFUNDS SHALL BE MADE BY THE OWNER IN CASH OR
 AS A CREDIT AGAINST UNPAID RENT OVER A PERIOD NOT TO EXCEED SIX MONTHS.
   (2) NOTWITHSTANDING PARAGRAPH A OF THIS SUBDIVISION, PROVIDED THAT THE
 OWNER  HAS  SUBMITTED  TO  THE DIVISION DOCUMENTATION IN ACCORDANCE WITH
 SUBDIVISION (A-1) OF SECTION TEN OF THIS  CHAPTER,  THE  DIVISION  SHALL
 ONLY  DETERMINE  WHETHER  THE  TENANCY  IS  SUBJECT TO A HOUSING SUBSIDY
 VOUCHER AND, IF NOT, WHETHER THE RENT CHARGED TO THE FIRST TENANT  AFTER
 THE LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT EXCEEDS THE SECTION 8
 VOUCHER  PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING AGENCY FOR A
 UNIT OF THE SAME SIZE LOCATED WITHIN THE  SAME  ZIP  CODE  THAT  WAS  IN
 EFFECT  AT THE TIME THE LEASE WAS EXECUTED.  ANY DOCUMENTATION DEFICIEN-
 CIES SHALL BE RESOLVED THROUGH THE AUDIT PROCESS SET FORTH  IN  SUBDIVI-
 SION (A-1) OF SECTION TEN OF THIS CHAPTER.
   (3) IN THE LEASE EXECUTION PACKAGE FOR THE FIRST LEASE AFTER THE LEGAL
 RENT  WAS ADJUSTED UNDER THE LOCAL REGULATED HOUSING RESTORATION ADJUST-
 MENT, THE OWNER SHALL GIVE NOTICE, BOTH IN THE LEASE AND SUBSEQUENTLY IN
 WRITING BY CERTIFIED MAIL, OR BY ELECTRONIC DELIVERY IF THE  TENANT  HAS
 OPTED TO RECEIVE ELECTRONIC DELIVERY OF DOCUMENTS, TO THE TENANT OF SUCH
 HOUSING  ACCOMMODATION ON A FORM PRESCRIBED BY THE COMMISSIONER OF HOUS-
 ING AND COMMUNITY RENEWAL THAT THE LOCAL REGULATED  HOUSING  RESTORATION
 ADJUSTMENT  WAS APPLIED, INCLUDING NOTIFICATION OF THE PRIOR LEGAL REGU-
 LATED RENT, A DESCRIPTION OF WORK COMPLETED, THE  BUILDING  ADDRESS  AND
 THE SECTION 8 VOUCHER PAYMENT STANDARD ADOPTED BY A LOCAL PUBLIC HOUSING
 AGENCY  FOR A UNIT OF THE SAME SIZE AND LOCATED WITHIN THE SAME ZIP CODE
 THAT WAS IN EFFECT AT THE TIME THE LEASE WAS EXECUTED, AND SUCH TENANT'S
 RIGHT TO FILE AN APPLICATION FOR ADJUSTMENT OF THE NEW  LEGAL  REGULATED
 RENT OF SUCH HOUSING ACCOMMODATION.
   §  7.  This  act  shall take effect immediately; and provided that the
 amendments to chapter 4 of title 26 of the administrative  code  of  the
 city  of  New York made by sections one, two and three of this act 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.