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New York Rent Laws
Rent Regulation "Reform" Act of 1993
RENT REGULATION REFORM ACT OF 1993
STATE OF NEW YORK
6198
1993-1994 Regular Sessions
IN SENATE
July 7, 1993
EXPLANATION -- Matter in ALL CAPS is new; matter in brackets [ ]
is old law to be omitted
Introduced by Sens. HANNON, BRUNO, DALY, MARINO, MARCHI, MALTESE
-- read twice and ordered printed, and when printed to be
committed to the Committee on Rules
AN ACT to amend the emergency housing rent control law, the
administrative code of the city of New York, the emergency tenant
protection act of nineteen seventy-four, the tax law and the real
property tax law, in relation to eliminating rent regulation
protections for certain high income tenants and high rent
apartments and to amend chapter 576 of the laws of 1974, amending
the emergency housing rent control law relating to the control of
and stabilization of rent in certain cases, chapter 329 of the
laws of 1963, amending the emergency housing rent control law
relating to the recontrol of rents in certain cases, the
emergency housing rent control law, chapter 555 of the laws of
1982, amending the general business law and the administrative
code of the city of New York relating to conversion of rental
residential property to cooperative or condominium ownership in
the city of New York and chapter 402 of the laws of 1983,
amending the general business law relating to conversion of
rental residential property to cooperative or condominium
ownership in certain municipalities in the counties of Nassau,
Westchester and Rockland, in relation to their periods of
effectiveness, the emergency tenant protection act of nineteen
seventy-four, in relation to applicability to cooperative or
condominium units, the administrative code of the city of New
York, and the emergency tenant protection act of nineteen seventy-
four, and the emergency housing rent control law, in relation to
rent increases for certain improvements and repealing provisions
thereof relating thereto, the administrative code of the city of
New York and the emergency tenant protection act of nineteen
seventy-four, in relation to rent registration and certain
penalties
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "rent
regulation reform act of 1993".
Sec. 2. Subdivision 2 of section 2 of chapter 274 of the laws of
1946, constituting the emergency housing rent control law, is
amended by adding two new paragraphs (m) and (n) to read as
follows:
(M) UPON THE ISSUANCE OF AN ORDER OF DECONTROL BY THE
DIVISION, HOUSING ACCOMMODATIONS WHICH: (1) ARE OCCUPIED BY
PERSONS WHO HAVE A TOTAL ANNUAL INCOME IN EXCESS OF TWO
HUNDRED FIFTY THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING
CALENDAR YEARS, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION TWO-A OF THIS LAW; AND (2)
HAVE A MAXIMUM RENT OF TWO THOUSAND DOLLARS OR MORE PER
MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE.
(N) ANY HOUSING ACCOMMODATION WITH A MAXIMUM RENT OF TWO
THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME BETWEEN THE
EFFECTIVE DATE OF THIS PARAGRAPH AND OCTOBER FIRST, NINETEEN
HUNDRED NINETY-THREE WHICH IS OR BECOMES VACANT ON OR AFTER
THE EFFECTIVE DATE OF THIS PARAGRAPH. THIS EXCLUSION SHALL
NOT APPLY HOWEVER, TO OR BECOME EFFECTIVE WITH RESPECT TO
HOUSING ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES OR
FINDS THAT THE LANDLORD OR ANY PERSON ACTING ON HIS OR HER
BEHALF, WITH INTENT TO CAUSE THE TENANT TO VACATE, HAS
ENGAGED IN ANY COURSE OF CONDUCT (INCLUDING, BUT NOT LIMITED
TO, INTERRUPTION OR DISCONTINUANCE OF REQUIRED SERVICES)
WHICH INTERFERED WITH OR DISTURBED OR WAS INTENDED TO
INTERFERE WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR
QUIET OF THE TENANT IN HIS OR HER USE OR OCCUPANCY OF THE
HOUSING ACCOMMODATIONS AND IN CONNECTION WITH SUCH COURSE OF
CONDUCT, ANY OTHER GENERAL ENFORCEMENT PROVISION OF THIS LAW
SHALL ALSO APPLY.
Sec. 3. Chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, is amended by adding a new
section 2-a to read as follows:
SEC. 2-A.
(A) 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.
(B) ON OR BEFORE THE FIRST DAY OF MAY IN EACH CALENDAR
YEAR, THE OWNER OF EACH HOUSING ACCOMMODATION FOR WHICH
THE MAXIMUM RENT AS OF OCTOBER FIRST, NINETEEN HUNDRED
NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE PER MONTH
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 TWO
HUNDRED FIFTY THOUSAND DOLLARS 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 AFOREMENTIONED THRESHOLD HAS BEEN EXCEEDED.
SUCH INCOME CERTIFICATION FORM SHALL CLEARLY STATE
THAT: (I) ONLY TENANTS RESIDING IN HOUSING
ACCOMMODATIONS WHICH HAD A MAXIMUM RENT OF TWO THOUSAND
DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN
HUNDRED NINETY-THREE 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
TWO HUNDRED FIFTY THOUSAND DOLLARS 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 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS
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 DIVISION WITH SUCH
INFORMATION AS THE DIVISION AND THE DEPARTMENT OF
TAXATION AND FINANCE SHALL REQUIRE TO VERIFY
WHETHER THE TOTAL ANNUAL INCOME EXCEEDS TWO
HUNDRED FIFTY THOUSAND DOLLARS 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 OF DECONTROL 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 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
PARAGRAPH. 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.
Sec. 4. Paragraph 2 of subdivision e of section 26-403 of the
administrative code of the city of New York is amended by adding
two new subparagraphs (j) and (k) to read as follows:
(J) UPON THE ISSUANCE OF AN ORDER OF DECONTROL BY THE
DIVISION, HOUSING ACCOMMODATIONS WHICH: (1) ARE
OCCUPIED BY PERSONS WHO HAVE A TOTAL ANNUAL INCOME IN
EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS 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 CHAPTER; AND (2) HAVE A
MAXIMUM RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH
AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE.
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.
(K) ANY HOUSING ACCOMMODATION WITH A MAXIMUM RENT OF TWO
THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME BETWEEN
THE EFFECTIVE DATE OF THIS SUBPARAGRAPH AND OCTOBER
FIRST, NINETEEN HUNDRED NINETY-THREE WHICH IS OR
BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THIS
SUBPARAGRAPH. 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. THIS SUBPARAGRAPH
SHALL NOT APPLY HOWEVER, TO OR BECOME EFFECTIVE WITH
RESPECT TO HOUSING ACCOMMODATIONS WHICH THE
COMMISSIONER DETERMINES OR FINDS THAT THE LANDLORD OR
ANY PERSON ACTING ON HIS OR HER BEHALF, WITH INTENT TO
CAUSE THE TENANT TO VACATE, HAS ENGAGED IN ANY COURSE
OF CONDUCT (INCLUDING, BUT NOT LIMITED TO, INTERRUPTION
OR DISCONTINUANCE OF REQUIRED SERVICES) WHICH
INTERFERED WITH OR DISTURBED OR WAS INTENDED TO
INTERFERE WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR
QUIET OF THE TENANT IN HIS OR HER USE OR OCCUPANCY OF
THE HOUSING ACCOMMODATIONS AND IN CONNECTION WITH SUCH
COURSE OF CONDUCT, ANY OTHER GENERAL ENFORCEMENT
PROVISION OF THIS LAW SHALL ALSO APPLY.
Sec. 5. The administrative code of the city of New York is
amended by adding a new section 26-403.1 to read as follows:
SEC. 26-403.1 HIGH INCOME RENT DECONTROL.
(A) 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 HOUSING ACCOMMODATION
IS SUBLET, THE ANNUAL INCOME OF THE SUBLESSOR SHALL BE
CONSIDERED.
(B) ON OR BEFORE THE FIRST DAY OF MAY IN EACH CALENDAR
YEAR, THE OWNER OF EACH HOUSING ACCOMMODATION FOR WHICH
THE MAXIMUM RENT AS OF OCTOBER FIRST, NINETEEN HUNDRED
NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE PER MONTH
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 TWO
HUNDRED FIFTY THOUSAND DOLLARS 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 AFOREMENTIONED THRESHOLD HAS BEEN EXCEEDED.
SUCH INCOME CERTIFICATION FORM SHALL CLEARLY STATE
THAT: (I) ONLY TENANTS RESIDING IN HOUSING
ACCOMMODATIONS WHICH HAD A MAXIMUM RENT OF TWO THOUSAND
DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN
HUNDRED NINETY-THREE 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
TWO HUNDRED FIFTY THOUSAND DOLLARS 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 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS
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 DIVISION WITH SUCH
INFORMATION AS THE DIVISION AND THE DEPARTMENT OF
TAXATION AND FINANCE SHALL REQUIRE TO VERIFY
WHETHER THE TOTAL ANNUAL INCOME EXCEEDS TWO
HUNDRED FIFTY THOUSAND DOLLARS 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 OF DECONTROL 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 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
PARAGRAPH. 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)
PARAGRAPH TWO OF SUBDIVISION E OF SECTION 26-403 OF
THIS CODE.
Sec. 6. The administrative code of the city of New York is
amended by adding two new sections 26-504.1 and 26-504.2 to read
as follows:
SEC. 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 IN EXCESS OF TWO HUNDRED FIFTY THOUSAND
DOLLARS PER ANNUM 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 RENT OF TWO THOUSAND
DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST,
NINETEEN HUNDRED NINETY-THREE. PROVIDED HOWEVER,
THAT THIS EXCLUSION SHALL NOT APPLY TO HOUSING
ACCOMMODATIONS 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 OTHERWISE 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.
SEC. 26-504.2 EXCLUSION OF HIGH RENT ACCOMMODATIONS.
"HOUSING ACCOMMODATIONS" SHALL NOT INCLUDE ANY HOUSING
ACCOMMODATION WITH A LEGAL REGULATED RENT OF TWO THOUSAND
DOLLARS OR MORE PER MONTH AT ANY TIME BETWEEN THE EFFECTIVE
DATE OF THIS SECTION AND OCTOBER FIRST, NINETEEN HUNDRED
NINETY-THREE WHICH IS OR BECOMES VACANT ON OR AFTER THE
EFFECTIVE DATE OF THIS SECTION. PROVIDED HOWEVER, THAT THIS
EXCLUSION SHALL NOT APPLY TO HOUSING ACCOMMODATIONS 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 OTHERWISE 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. THIS SECTION SHALL NOT APPLY, HOWEVER, TO OR
BECOME EFFECTIVE WITH RESPECT TO HOUSING ACCOMMODATIONS
WHICH THE COMMISSIONER DETERMINES OR FINDS THAT THE LANDLORD
OR ANY PERSON ACTING ON HIS OR HER BEHALF, WITH INTENT TO
CAUSE THE TENANT TO VACATE, ENGAGED IN ANY COURSE OF CONDUCT
(INCLUDING, BUT NOT LIMITED TO, INTERRUPTION OR
DISCONTINUANCE OF REQUIRED SERVICES) WHICH INTERFERED WITH
OR DISTURBED OR WAS INTENDED TO INTERFERE WITH OR DISTURB
THE COMFORT, REPOSE, PEACE OR QUIET OF THE TENANT IN HIS OR
HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS AND IN
CONNECTION WITH SUCH COURSE OF CONDUCT, ANY OTHER GENERAL
ENFORCEMENT PROVISION OF THIS LAW SHALL ALSO APPLY.
Sec. 7. The administrative code of the city of New York is
amended by adding a new section 26-504.3 to read as follows:
SEC. 26-504.3 HIGH INCOME RENT DECONTROL.
(A) 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.
(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 AS OF OCTOBER FIRST, NINETEEN
HUNDRED NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE
PER MONTH 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 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 RENT OF TWO THOUSAND DOLLARS OR MORE PER
MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-
THREE 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS
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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 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
PROVIDING 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.
Sec. 8. 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, is redesignated
subdivision b and two new paragraphs 12 and 13 are added 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 TWO HUNDRED
FIFTY THOUSAND DOLLARS PER ANNUM IN EACH OF THE TWO
PRECEDING 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 AS OF OCTOBER FIRST,
NINETEEN HUNDRED NINETY-THREE. 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 TWENTY-ONE-A OR FOUR HUNDRED
EIGHTY-NINE OF THE REAL PROPERTY TAX LAW, EXCEPT AS
OTHERWISE 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.
(13) ANY HOUSING ACCOMMODATION WITH A LEGAL REGULATED RENT
OF TWO THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME
BETWEEN THE EFFECTIVE DATE OF THIS PARAGRAPH AND
OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE WHICH IS
OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF
THIS PARAGRAPH, 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
TWENTY-ONE-A OR FOUR HUNDRED EIGHTY-NINE OF THE REAL
PROPERTY TAX LAW, EXCEPT AS OTHERWISE 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. THIS PARAGRAPH SHALL NOT APPLY,
HOWEVER, TO OR BECOME EFFECTIVE WITH RESPECT TO HOUSING
ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES OR
FINDS THAT THE LANDLORD OR ANY PERSON ACTING ON HIS OR
HER BEHALF, WITH INTENT TO CAUSE THE TENANT TO VACATE,
HAS ENGAGED IN ANY COURSE OF CONDUCT (INCLUDING, BUT
NOT LIMITED TO, INTERRUPTION OR DISCONTINUANCE OF
REQUIRED SERVICES) WHICH INTERFERED WITH OR DISTURBED
OR WAS INTENDED TO INTERFERE WITH OR DISTURB THE
COMFORT, REPOSE, PEACE OR QUIET OF THE TENANT IN HIS OR
HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS AND
IN CONNECTION WITH SUCH COURSE OF CONDUCT, ANY OTHER
GENERAL ENFORCEMENT PROVISION OF THIS ACT SHALL ALSO
APPLY.
Sec. 9. 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 section 5-a to read as
follows:
SEC. 5-A. HIGH INCOME RENT DECONTROL.
(A) 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.
(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 AS OF OCTOBER FIRST, NINETEEN
HUNDRED NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE
PER MONTH 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 RENT OF TWO THOUSAND DOLLARS OR MORE PER
MONTH AS OF OCTOBER FIRST. NINETEEN HUNDRED NINETY-
THREE 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 THAT
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 TWO HUNDRED FIFTY THOUSAND
DOLLARS 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS
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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 OR 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.
Sec. 10. Subdivisions 3 and 4 of section 171-b of the tax
law are renumbered subdivisions 4 and 5 and a new subdivision 3
is added and subdivision 5, as amended by chapter 261 of the laws
of 1988 and renumbered by this section, is amended to read as
follows:
(3) (A) THE COMMISSIONER IS AUTHORIZED AND DIRECTED
TO ENTER INTO AN AGREEMENT WITH THE COMMISSIONER
OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
TO VERIFY THE INCOME OF TENANTS RESIDING IN
HOUSING ACCOMMODATIONS SUBJECT TO RENT REGULATION.
THE DEPARTMENT SHALL ADOPT RULES AND REGULATIONS
TO EFFECT THE PROVISIONS OF THIS SUBDIVISION.
(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 TWO HUNDRED FIFTY
THOUSAND DOLLARS PER ANNUM IN EACH OF THE TWO
PRECEDING CALENDAR YEARS. NO OTHER INFORMATION
REGARDING THE ANNUAL INCOME OF SUCH PERSONS SHALL
BE PROVIDED.
(C) NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE
DEEMED TO REQUIRE THE VIOLATION OF ANY
CONFIDENTIALITY AGREEMENT ENTERED INTO BY THE
STATE OR ANY ENTITY THEREOF UNDER THE PROVISIONS
OF SECTION SIXTY-ONE HUNDRED THREE, OR ANY OTHER
PROVISION, OF THE INTERNAL REVENUE CODE, NOR SHALL
THIS SUBDIVISION BE ADMINISTERED IN ANY MANNER
WHICH WILL RESULT IN A VIOLATION OF ANY SUCH
CONFIDENTIALITY AGREEMENT.
(5) The provisions of the state freedom of information act
shall not apply to any verification of income
information obtained from a company, the commissioner
of housing and community renewal, the supervising
agency, the corporation, or officer or employee thereof
pursuant to the provisions of this section NOR SHALL
THE PROVISIONS OF SUCH ACT APPLY TO ANY VERIFICATIONS
PREPARED OR PROVIDED PURSUANT TO SUBDIVISION THREE OF
THIS SECTION.
Sec. 11. Subparagraph (i) of paragraph (f) of subdivision 2 of
section 421-a of the real property tax law, as added by chapter
346 of the laws of 1984, is amended to read as follows:
(i) with respect to units subject to the provisions of this
section on the effective date of this subparagraph such
a unit becomes vacant after the expiration of such ten
year period or applicable law or act; provided,
however, THAT SUCH UNITS MAY BE DECONTROLLED PURSUANT
TO THE RENT REGULATION REFORM ACT OF 1993 AND PROVIDED
FURTHER THAT the rent shall not be decontrolled for a
unit which the commissioner of housing and community
renewal or a court of competent jurisdiction finds
became vacant because the landlord or any person acting
on his behalf engaged in any course of conduct,
including but not limited to, interruption or
discontinuance of essential services which interfered
with or disturbed or was intended to interfere with or
disturb the comfort, repose, peace or quiet of the
tenant in his use or occupancy of such unit, and, that
upon such finding in addition to being subject to any
other penalties or remedies permitted by law, the
landlord of such unit shall be barred from collecting
rent for such unit in excess of that charged to the
tenant who vacated such unit until restoration of
possession of such tenant, if the tenant so desires, in
which case the rent of such tenant shall be established
as if such tenant had not vacated such unit, or
compliance with such other remedy, including, but not
limited to, all remedies provided for by the emergency
tenant protection act of nineteen seventy-four for rent
overcharge or failure to comply with any order of the
commissioner of housing and community renewal, as shall
be determined by the commissioner of housing and
community renewal to be appropriate; provided, however,
that if a tenant fails to accept any such offer of
restoration of possession, such unit shall return to
rent stabilization at the previously regulated rent; or
Sec. 12. Section 17 of chapter 576 of the laws of 1974, amending
the emergency housing rent control law relating to the control of
and stabilization of rent in certain cases, as amended by chapter
197 of the laws of 1993, is amended to read as follows:
Sec. 17. Effective date.
This act shall take effect immediately and shall remain in
full force and effect until and including the [seventh day
of July, 1993] FIFTEENTH DAY OF JUNE 1997; except that
sections two and three shall take effect with respect to any
city having a population of one million or more and section
one shall take effect with respect to any other city, or any
town or village whenever the local legislative body of a
city, town or village determines the existence of a public
emergency pursuant to section 3 of the emergency tenant
protection act of nineteen seventy-four, as enacted by
section four of this act, and provided that the housing
accommodations subject on the effective date of this act to
stabilization pursuant to the New York city rent
stabilization law of nineteen hundred sixty-nine shall
remain subject to such law upon the expiration of this act.
Sec. 13. Section 2 of chapter 329 of the laws of 1963, amending
the emergency housing rent control law relating to the recontrol
of rents in certain cases, as amended by chapter 197 of the laws
of 1993, is amended to read as follows:
Sec. 2. This act shall take effect immediately and the
provisions of subdivision 6 of section 12 of the emergency
housing rent control law, as added by this act, shall remain
in full force and effect until and including [July 7, 1993]
JUNE 15, 1997.
Sec. 14. Subdivision 2 of section 1 of chapter 274 of the laws of
1946, constituting the emergency housing rent control law, as
amended by chapter 197 of the laws of 1993, is amended to read as
follows:
2. The provisions of this act, and all regulations, orders
and requirements thereunder shall remain in full force and
effect until and including [July 7, 1993] JUNE 15, 1997.
Sec. 15. Section 10 of chapter 555 of the laws of 1982, amending
the general business law and the administrative code of the city
of New York relating to conversion of rental residential property
to cooperative or condominium ownership in the city of New York,
as amended by chapter 197 of the laws of 1993, is amended to read
as follows:
Sec. 10. This act shall take effect immediately; provided,
that the provisions of sections one, two and nine of this
act shall remain in full force and effect only until and
including [July 7, 1993] JUNE 15, 1997; provided further
that the provisions of section three of this act shall
remain in full force and effect only so 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; provided further that the provisions of
sections four, five, six and seven of this act shall expire
in accordance with the provisions of section 26-520 of the
administrative code of the city of New York as such section
of the administrative code is, from time to time, amended;
provided further that the provisions of section 26-511 of
the administrative code of the city of New York, as amended
by this act, which the New York City Department of Housing
Preservation and Development must find are contained in the
code of the real estate industry stabilization association
of such city in order to approve it, shall be deemed
contained therein as of the effective date of this act; and
provided further that any plan accepted for filing by the
department of law on or before the effective date of this
act shall continue to be governed by the provisions of
section 352-eeee of the general business law as they had
existed immediately prior to the effective date of this act.
Sec. 16. Section 4 of chapter 402 of the laws of 1983, amending
the general business law relating to conversion of rental
residential property to cooperative or condominium ownership in
certain municipalities in the counties of Nassau, Westchester and
Rockland, as amended by chapter 197 of the laws of 1993, is
amended to read as follows:
Sec. 4. This act shall take effect immediately; provided,
that the provisions of sections one and three of this act
shall remain in full force and effect only until and
including [July 7, 1993] JUNE 15, 1997; and provided further
that any plan accepted for filing by the department of law
on or before the effective date of this act shall continue
to be governed by the provisions of section 352-eee of the
general business law as they had existed immediately prior
to the effective date of this act.
Sec. 17. 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, is amended by adding a new
paragraph 14 to read as follows:
(14) (I) HOUSING ACCOMMODATIONS OWNED AS A COOPERATIVE
OR CONDOMINIUM UNIT WHICH ARE OR BECOME VACANT ON
OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH,
EXCEPT THAT THIS SUBPARAGRAPH SHALL NOT APPLY TO
UNITS OCCUPIED BY NON-PURCHASING TENANTS UNDER
SECTION THREE HUNDRED FIFTY-TWO-EEE OF THE GENERAL
BUSINESS LAW UNTIL THE OCCURRENCE OF A VACANCY.
(II) THIS PARAGRAPH SHALL NOT APPLY, HOWEVER, TO OR
BECOME EFFECTIVE WITH RESPECT TO HOUSING
ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES
OR FINDS THE LANDLORD OR ANY PERSON ACTING ON HIS
OR HER BEHALF, WITH INTENT TO CAUSE THE TENANT TO
VACATE, ENGAGED IN ANY COURSE OF CONDUCT
(INCLUDING, BUT NOT LIMITED TO, INTERRUPTION OR
DISCONTINUANCE OF REQUIRED SERVICES) WHICH
INTERFERED WITH OR DISTURBED OR WAS INTENDED TO
INTERFERE WITH OR DISTURB THE COMFORT, REPOSE,
PEACE OR QUIET OF THE TENANT IN HIS OR HER USE OR
OCCUPANCY OF THE HOUSING ACCOMMODATIONS. IN
CONNECTION WITH SUCH COURSE OF CONDUCT ANY OTHER
GENERAL ENFORCEMENT PROVISION OF THIS ACT SHALL
ALSO APPLY;
Sec. 18. Subparagraph (e) of paragraph 4 of subdivision 9 of
section 26-405 of the administrative code of the city of New York
is amended to read as follows:
(e) The landlord and tenant by mutual voluntary written
agreement[, subject to the approval of the city rent
agency,] agree to a substantial increase or decrease in
dwelling space or a change in the services, furniture,
furnishings or equipment provided in the housing
accommodations. AN ADJUSTMENT UNDER THIS SUBPARAGRAPH
SHALL BE EQUAL TO ONE-FORTIETH OF THE TOTAL COST
INCURRED BY THE LANDLORD IN PROVIDING SUCH MODIFICATION
OR INCREASE IN DWELLING SPACE, SERVICES, FURNITURE,
FURNISHINGS OR EQUIPMENT, INCLUDING THE COST OF
INSTALLATION, BUT EXCLUDING FINANCE CHARGES, PROVIDED
FURTHER THAN AN OWNER WHO IS ENTITLED TO A RENT
INCREASE PURSUANT TO THIS SUBPARAGRAPH SHALL NOT BE
ENTITLED TO A FURTHER RENT INCREASE BASED UPON THE
INSTALLATION OF SIMILAR EQUIPMENT, OR NEW FURNITURE OR
FURNISHINGS WITHIN THE USEFUL LIFE OF SUCH NEW
EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS. THE OWNER
SHALL GIVE WRITTEN NOTICE TO THE CITY RENT AGENCY OF
ANY SUCH ADJUSTMENT PURSUANT TO THIS SUBPARAGRAPH.; or
Sec. 19. Subdivision c of section 26-511 of the administrative
code of the city of New York is amended by adding a new paragraph
13 to read as follows:
(13) PROVIDES THAT AN OWNER IS ENTITLED TO A RENT INCREASE
WHERE THERE HAS BEEN A SUBSTANTIAL MODIFICATION OR
INCREASE OF DWELLING SPACE OR AN INCREASE IN THE
SERVICES, OR INSTALLATION OF NEW EQUIPMENT OR
IMPROVEMENTS OR NEW FURNITURE OR FURNISHINGS PROVIDED
IN OR TO A TENANT'S HOUSING ACCOMMODATION, ON WRITTEN
TENANT CONSENT TO THE RENT INCREASE. IN THE CASE OF A
VACANT HOUSING ACCOMMODATION, TENANT CONSENT SHALL NOT
BE REQUIRED. THE PERMANENT INCREASE IN THE LEGAL
REGULATED RENT FOR THE AFFECTED HOUSING ACCOMMODATION
SHALL BE ONE-FORTIETH OF THE TOTAL COST INCURRED BY THE
LANDLORD IN PROVIDING SUCH MODIFICATION OR INCREASE IN
DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR
EQUIPMENT, INCLUDING THE COST OF INSTALLATION, BUT
EXCLUDING FINANCE CHARGES. PROVIDED FURTHER THAT AN
OWNER WHO IS ENTITLED TO A RENT INCREASE PURSUANT TO
THIS PARAGRAPH SHALL NOT BE ENTITLED TO A FURTHER RENT
INCREASE BASED UPON THE INSTALLATION OF SIMILAR
EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS WITHIN THE
USEFUL LIFE OF SUCH NEW EQUIPMENT, OR NEW FURNITURE OR
FURNISHINGS.
Sec. 20. Paragraph 1 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 is REPEALED and a
new paragraph 1 is added to read as follows:
(1) THERE HAS BEEN A SUBSTANTIAL MODIFICATION OR INCREASE
OF DWELLING SPACE OR AN INCREASE IN THE SERVICES, OR
INSTALLATION OF NEW EQUIPMENT OR IMPROVEMENTS OR NEW
FURNITURE OR FURNISHINGS, PROVIDED IN OR TO A TENANT'S
HOUSING ACCOMMODATION, ON WRITTEN TENANT CONSENT TO THE
RENT INCREASE. IN THE CASE OF A VACANT HOUSING
ACCOMMODATION, TENANT CONSENT SHALL NOT BE REQUIRED.
THE PERMANENT INCREASE IN THE LEGAL REGULATED RENT FOR
THE AFFECTED HOUSING ACCOMMODATION SHALL BE ONE-
FORTIETH OF THE TOTAL COST INCURRED BY THE LANDLORD IN
PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING
SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT,
INCLUDING THE COST OF INSTALLATION, BUT EXCLUDING
FINANCE CHARGES. PROVIDED FURTHER THAN AN OWNER WHO IS
ENTITLED TO A RENT INCREASE PURSUANT TO THIS PARAGRAPH
SHALL NOT BE ENTITLED TO A FURTHER RENT INCREASE BASED
UPON THE INSTALLATION OF SIMILAR EQUIPMENT, OR NEW
FURNITURE OR FURNISHINGS WITHIN THE USEFUL LIFE OF SUCH
NEW EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS.
Sec. 21. Clause 5 of paragraph (a) of subdivision 4 of section 4
of chapter 274 of the laws of 1946, constituting the emergency
housing rent control law, as amended by chapter 21 of the laws of
1962, is amended to read as follows:
(5) the landlord and tenant by mutual voluntary written
agreement[, subject to the approval of the commission,]
agree to a substantial increase or decrease in dwelling
space or a change in the services, furniture,
furnishings or equipment provided in the housing
accommodations, PROVIDED THAT AN OWNER SHALL BE
ENTITLED TO A RENT INCREASE WHERE THERE HAS BEEN A
SUBSTANTIAL MODIFICATION OR INCREASE OF DWELLING SPACE
OR AN INCREASE IN THE SERVICES, OR INSTALLATION OF NEW
EQUIPMENT OR IMPROVEMENTS OR NEW FURNITURE OR
FURNISHINGS PROVIDED IN OR TO A TENANT'S HOUSING
ACCOMMODATION. THE PERMANENT INCREASE IN THE MAXIMUM
RENT FOR THE AFFECTED HOUSING ACCOMMODATION SHALL BE
ONE-FORTIETH OF THE TOTAL COST INCURRED BY THE LANDLORD
IN PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING
SPACE, SERVICES FURNITURE, FURNISHINGS OR EQUIPMENT,
INCLUDING THE COST OF INSTALLATION, BUT EXCLUDING
FINANCE CHARGES PROVIDED FURTHER THAT AN OWNER WHO IS
ENTITLED TO A RENT INCREASE PURSUANT TO THIS CLAUSE
SHALL NOT BE ENTITLED TO A FURTHER RENT INCREASE BASED
UPON THE INSTALLATION OF SIMILAR EQUIPMENT, OR NEW
FURNITURE OR FURNISHINGS WITHIN THE USEFUL LIFE OF SUCH
NEW EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS. THE
OWNER SHALL GIVE WRITTEN NOTICE TO THE COMMISSION OF
ANY SUCH ADJUSTMENT PURSUANT TO THIS CLAUSE; or
Sec. 22. Subdivision a of section 26-516 of the administrative
code of the city of New York is amended to read as follows:
a. Subject to the conditions and limitations of this
subdivision, any owner of housing accommodations who,
upon complaint of a tenant, or of the state division of
housing. and community renewal is found by the state
division of housing and community renewal, after a
reasonable opportunity to be heard, to have collected
an overcharge above the rent authorized for a housing
accommodation subject to this chapter shall be liable
to the tenant for a penalty equal to three times the
amount of such overcharge. IN NO EVENT SHALL SUCH
TREBLE DAMAGE PENALTY BE ASSESSED AGAINST AN OWNER
BASED SOLELY ON SAID OWNER'S FAILURE TO FILE A TIMELY
OR PROPER INITIAL OR ANNUAL RENT REGISTRATION
STATEMENT. If the owner establishes by a preponderance
of the evidence that the overcharge was not willful,
the state division of housing and community renewal
shall establish the penalty as the amount of the
overcharge plus interest. (i) Except as to complaints
filed pursuant to clause (ii) of this paragraph, the
legal regulated rent for purposes of determining an
overcharge, shall be the rent indicated in the annual
registration statement filed four years prior to the
most recent registration statement, (or, if more
recently filed, the initial registration statement)
plus in each case any subsequent lawful increases and
adjustments. (ii) As to complaints filed within ninety
days of the initial registration of a housing
accommodation, the legal regulated rent shall be deemed
to be the rent charged on the date four years prior to
the date of the initial registration of the housing
accommodation (or, if the housing accommodation was
subject to this chapter for less than four years, the
initial legal regulated rent) plus in each case, any
lawful increases and adjustments. Where the rent
charged on the date four years prior to the date of the
initial registration of the accommodation cannot be
established, such rent shall be established by the
division.
Where the rent charged on the date four years prior to
the date of initial registration of the housing
accommodation cannot be established, such rent shall be
established by the division provided that where a rent
is established based on rentals determined under the
provisions of the local emergency housing rent control
act such rent must be adjusted to account for no less
than the minimum increases which would be permitted if
the housing accommodation were covered under the
provisions of this chapter.
(1) The order of the state division of housing and
community renewal shall apportion the owner's
liability between or among two or more tenants
found to have been overcharged by such owner
during their particular tenancy of a unit.
(2) Except as provided under clauses (i) and (ii) of
this paragraph, a complaint under this subdivision
shall be filed with the state division of housing
and community renewal within four years of the
first overcharge alleged and no award of the
amount of an overcharge may be based upon an
overcharge having occurred more than four years
before the complaint is filed. (i) No penalty of
three times the overcharge may be based upon an
overcharge having occurred more than two years
before the complaint is filed or upon an
overcharge which occurred prior to April 13 first,
nineteen hundred eighty-four. (ii) Any complaint
based upon overcharges occurring prior to the date
of filing of the initial rent registration as
provided in section 26-517 of this chapter shall
be filed within ninety days of the mailing of
notice to the tenant of such registration.
(3) Any affected tenant shall be notified of and given
an opportunity to join in any complaint filed by
an officer or employee of the state division of
housing and community renewal.
(4) An owner found to have overcharged may be assessed
the reasonable costs and attorney's fees of the
proceeding and interest from the date of the
overcharge at the rate of interest payable on a
judgment pursuant to section five thousand four of
the civil practice law and rules.
(5) The order of the state division of housing and
community renewal awarding penalties may, upon the
expiration of the period in which the owner may
institute a proceeding pursuant to article seventy-
eight of the civil practice law and rules, be
filed and enforced by a tenant in the same manner
as a judgment or not in excess of twenty percent
thereof per month may be offset against any rent
thereafter due the owner.
Sec. 23. Subdivision e of section 26-517 of the administrative
code of the city of New York is amended to read as follows:
e. The failure to file a proper and timely initial or
annual rent registration statement shall, until such
time as such registration is filed, bar an owner from
applying for or collecting any rent in excess of the
legal regulated rent in effect on the date of the last
preceding registration statement or if no such
statements have been filed, the legal regulated rent in
effect on the date that the housing accommodation
became subject to the registration requirements of this
section. The filing of a late registration shall result
in the prospective elimination of such sanctions AND
PROVIDED THAT INCREASES IN THE LEGAL REGULATED RENT
WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY
REGISTRATION, THE OWNER, UPON THE SERVICE AND FILING OF
A LATE REGISTRATION, SHALL NOT BE FOUND TO HAVE
COLLECTED AN OVERCHARGE AT ANY TIME PRIOR TO THE FILING
OF THE LATE REGISTRATION. IF SUCH LATE REGISTRATION IS
FILED SUBSEQUENT TO THE FILING OF AN OVERCHARGE
COMPLAINT, THE OWNER SHALL BE ASSESSED A LATE FILING
SURCHARGE FOR EACH LATE REGISTRATION IN AN AMOUNT EQUAL
TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE.
Sec. 24. The opening paragraph of paragraph 1 of subdivision a of
section 12 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 403 of the laws of 1983, is
amended to read as follows:
Subject to the conditions and limitations of this paragraph,
any owner of housing accommodations in a city having a
population of less than one million or a town or village as
to which an emergency has been declared pursuant to section
three, who, upon complaint of a tenant or of the state
division of housing and community renewal, is found by the
state division of housing and community renewal, after a
reasonable opportunity to be heard, to have collected an
overcharge above the rent authorized for a housing
accommodation subject to this act shall be liable to the
tenant for a penalty equal to three times the amount of such
overcharge. IN NO EVENT SHALL SUCH TREBLE DAMAGE PENALTY BE
ASSESSED AGAINST AN OWNER BASED SOLELY ON SAID OWNER'S
FAILURE TO FILE A PROPER OR TIMELY INITIAL OR ANNUAL RENT
REGISTRATION STATEMENT. If the owner establishes by a
preponderance of the evidence that the overcharge was
neither willful nor attributable to his negligence, the
state division of housing and community renewal shall
establish the penalty as the amount of the overcharge plus
interest at the rate of interest payable on a judgment
pursuant to section five thousand four of the civil practice
law and rules. (i) Except as to complaints filed pursuant to
clause (ii) of this paragraph, the legal regulated rent for
purposes of determining an overcharge, shall be deemed to be
the rent indicated in the annual registration statement
filed four years prior to the most recent registration
statement, (or, if more recently filed, the initial
registration statement) plus in each case any subsequent
lawful increases and adjustments. (ii) As to complaints
filed within ninety days of the initial registration of a
housing accommodation, the legal regulated rent for purposes
of determining an overcharge shall be deemed to be the rent
charged on the date four years prior to the date of the
initial registration of the housing accommodation (or, if
the housing accommodation was subject to this act for less
than four years, the initial legal regulated rent) plus in
each case, any lawful increases and adjustments. Where the
rent charged on the date four years prior to the date of the
initial registration of the accommodation cannot be
established such rent shall be established by the division.
Sec. 25. Subdivision e of section 12-a 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
403 of the laws of 1983, is amended to read as follows:
e. The failure to file a proper and timely initial or
annual rent registration statement shall, until such
time as such registration is filed, bar an owner from
applying for or collecting any rent in excess of the
legal regulated rent in effect on the date of the last
preceding registration statement or if no such
statements have been filed, the legal regulated rent in
effect on the date that the housing accommodation
became subject to the registration requirements of this
section. The filing of a late registration shall result
in the prospective elimination of such sanctions AND
PROVIDED THAT INCREASES IN THE LEGAL REGULATED RENT
WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY
REGISTRATION, THE OWNER, UPON THE SERVICE AND FILING OF
A LATE REGISTRATION, SHALL NOT BE FOUND TO HAVE
COLLECTED AN OVERCHARGE AT ANY TIME PRIOR TO THE FILING
OF THE LATE REGISTRATION. IF SUCH LATE REGISTRATION IS
FILED SUBSEQUENT TO THE FILING OF AN OVERCHARGE
COMPLAINT, THE OWNER SHALL BE ASSESSED A LATE FILING
SURCHARGE FOR EACH LATE REGISTRATION IN AN AMOUNT EQUAL
TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE.
Sec. 26. (a) The chairperson of the senate committee on housing
and community development jointly with the chairperson of the
assembly housing committee shall establish a study group on
rental housing which shall prepare a report or reports to the
governor, the temporary president of the senate and the speaker
of the assembly no later than June 30, 1995.
(b) Such report shall study and investigate: (1) the economics of
the rental housing market throughout the state; (2) the
relationship of the development and supply of rental housing to,
and its effect on, state and local economies; (3) the operation
and effects of all state and local rent control and stabilization
laws and regulations on the rental housing markets in, and
economies of, localities subject to rent regulation; (4) the
effectiveness of state and local rent control laws and
regulations in ensuring an adequate supply of affordable housing
for low and moderate income households and in ensuring that
tenants have a safe and decent place to live; and (5) an analysis
of who benefits from rent control and rent stabilization
according to demographic data and who bears the costs of
providing those benefits.
(c) Such report shall review functions and activities of the rent
regulation system; analyze complaints of tenants and owners about
how the law and the office of rent administration is currently
being administered; and make administrative and legislative
recommendations regarding how to streamline and make more
efficient current policies and procedures. Such report shall also
examine current hardship application procedures and provide
recommendations for developing a hardship formula and procedure
that shall include: (1) a review and comparison of the current
and previously authorized hardship provisions for both rent
controlled and rent stabilized apartments; (2) an analysis and
comparison of the number of applications, approvals and denials
under current provisions of law and under prior hardship
provisions and the time required for processing such
applications; (3) where approvals were granted, the effective
rate of return; where denials were issued, the reasons therefor;
(4) a review and comparison of administrative procedures
currently and previously used to process hardship rent increase
applications; (5) an analysis of whether the current hardship
provisions of law provide owners with a reasonable rate of return
and are sufficient to maintain and induce investment in
economically marginal properties; and (6) recommendations for
changes in the current hardship provisions including ways to
simplify and expedite the current hardship rent increase
application process. In recommending an alternative hardship
formula, the report shall develop a methodology which will enable
the division of housing and community renewal to promptly approve
or disapprove applications received from owners and minimize the
need for extensive documentation from the owner.
(d) Such report shall also include and make recommendations
regarding: (1) the methodology and criteria employed by rent
guidelines boards in establishing guidelines for rent
adjustments; (2) the methodology and criteria employed in
establishing maximum base rents and biennial adjustments of
maximum rents; (3) the operation of senior citizen rent increase
exemption programs; (4) procedures and criteria utilized in
determining applications for major capital improvement rent
increases and rent increases for improvements in individual
apartment services, equipment and facilities, including proposals
to improve the provisions of law governing such applications and
to make more efficient the administration of such provisions; (5)
the criteria and procedures employed in resolving applications
for rent decreases by reason of decreased building-wide or
apartment services or facilities or for noncompliance with other
provisions of the rent control or stabilization laws; (6)
provisions of law and regulation and procedures employed to
prevent harassment; and (7) the criteria and procedures employed
in resolving complaints of rent overcharges and fair market rent
appeals.
(e) Such report shall also review: (1) the criteria and
procedures employed in administering the high income rent
decontrol and the high rent vacancy decontrol programs; (2)
proposals for the use of voluntary binding arbitration to resolve
disputes in the rent regulation system; (3) the operation of the
rent registration system and proposals for the improvement of
such system; (4) proposals to improve the quality of
administrative determinations and to expedite the handling of
cases of all types; and (5) the appropriate funding and staffing
of all programs and activities required to administer the rent
regulation system.
(f) Such report shall also analyze the methodology used to
compute the vacancy rate and whether such rate is a valid
indicator of a housing emergency and make recommendations to
change how vacancy rates are currently calculated, whether gross
vacancy rates are a better measure to use than net vacancy rates
when determining whether a housing emergency exists within a
particular community. Such report shall also analyze vacancy
rates for particular classes of housing based on the level of
rent.
(g) The division of housing and community renewal shall provide
technical assistance, staff and other such services to the co-
chairs of the study group on rental housing as may reasonably be
required to prepare the report or reports.
Sec. 27. Separability clause. If any provision of this act or the
application thereof shall for any reason be adjudged by any court
of competent jurisdiction to be invalid or unconstitutional, such
judgment shall not affect, impair or invalidate the remainder of
this act but shall be confined in its operation to the provision
thereof directly involved in the controversy in which such
judgment shall have been rendered; provided, however, that in the
event that the entire system of rent control or stabilization
shall be finally adjudged invalid or unconstitutional by a court
of competent jurisdiction because of the operation of any
provision of this act, such provision shall be null, void and
without effect and all the other provisions of this act which can
be given effect without such invalid provision, as well as
provisions of any other law, relating to the control of or
stabilization of rent, as in effect prior to the enactment of
this act and as otherwise amended by this act, shall continue in
full force and effect for the period of effectiveness set forth
in sections twelve, thirteen and fourteen of this act.
Sec. 28. Any rule or regulation or form necessary for the
implementation of this act, or any section of this act, is
authorized and directed to be made and completed within 180 days
after the date on which this act becomes a law.
Sec. 29. This act shall take effect immediately; provided however
that as to proceedings pending before the division of housing and
community renewal on the effective date of this act, sections
twenty-two, twenty-three, twenty-four and twenty-five of this act
shall apply only to proceedings which were docketed by the
division of housing and community renewal on or after July 1,
1991; and provided that the income certification forms provided
for in sections three, five, seven and nine of this act shall not
be transmitted until on or after January 1, 1994; provided that
the amendments to the city rent and rehabilitation law made by
this act shall remain in full force and effect only so 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 provided that the amendments to the rent
stabilization law of nineteen hundred sixty-nine made by 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; and provided that the amendments to the
emergency tenant protection act of nineteen seventy-four made by
this act 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; and provided that
the amendments to the emergency housing rent control law made by
this act except for the amendments contained in section fourteen
of this act 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.
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