* § 5-a. High income rent 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
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 total annual income equal to
one hundred seventy-five thousand dollars in each of the two preceding
calendar years for proceedings commenced before July first, two thousand
eleven. For proceedings commenced on or after July first, two thousand
eleven, the deregulation income threshold means the total annual income
equal to two hundred thousand dollars in each of the two preceding
calendar years.

3. Deregulation rent threshold means two thousand dollars for
proceedings commenced before July first, two thousand eleven. For
proceedings commenced on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars. For
proceedings commenced on or after July first, two thousand fifteen, the
deregulation rent threshold means two thousand seven hundred dollars,
provided, however that on January 1, 2016, and annually thereafter, the
maximum legal regulated rent for this deregulation threshold shall be
adjusted by the same percentage as the most recent one year renewal
adjustment adopted by the rent guidelines board.

(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
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 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 clearly state that:
(i) only tenants residing in housing accommodations which had a legal
regulated monthly rent 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 the deregulation income threshold in each of
the two preceding calendar years, 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
certification 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
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 the
deregulation income threshold in each of the two preceding calendar
years. 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 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 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 verification. 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 appropriate, 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
providing that such housing accommodation shall not be subject to the
provisions of this act 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 paragraph twelve of subdivision a
of section five of this act.

(e) Upon receipt of such order of 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.

* NB Expires June 16, 2019