A02674 Summary:
BILL NO | A02674A |
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SAME AS | SAME AS S02783-A |
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SPONSOR | Lopez V (MS) |
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COSPNSR | Silver, Farrell, Glick, Pretlow, Wright, Bing, O'Donnell, Rosenthal, Jeffries, Spano, Latimer, Aubry, Rivera P, Moya, Rodriguez, Rivera N, Gibson, Castro, Jacobs, Camara, Scarborough, Kavanagh, Linares, Boyland |
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MLTSPNSR | Abinanti, Arroyo, Benedetto, Brook-Krasny, Colton, Cymbrowitz, DenDekker, Dinowitz, Gottfried, Jaffee, Kellner, Lancman, Lentol, Maisel, Meng, Millman, Perry, Robinson, Stevenson, Titus, Weprin |
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Amd SS26-408, 26-511, 26-504, 26-405, 26-403, 26-403.1, 26-504.1 & 26-504.3, rpld S26-403 sub e 2 sub (k) & S26-504.2, NYC Ad Cd; amd SS10, 5, 6 & 5-a, rpld S5 sub a 13, Emerg Ten Prot Act of 1974; amd SS5, 1, 17, 4, 2 & 2-a, rpld S2 sub 2 (n), Emerg Hous Rent Cont L; amd S2, Chap 329 of 1963; amd S10, Chap 555 of 1982; amd S4, Chap 402 of 1983; amd S46, Chap 116 of 1997; amd S171-b, Tax L | |
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Relates to rent regulation; relates to recovery of certain housing accommodations by a landlord; relates to the declaration of emergencies for certain rental housing accommodations; extends certain provisions of law relating to rent regulation; relates to the adjustment of maximum allowable rent; relates to vacancy decontrol; relates to extending the length of time over which major capital improvement expenses may be recovered. |
A02674 Actions:
BILL NO | A02674A | |||||||||||||||||||||||||||||||||||||||||||||||||
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01/19/2011 | referred to housing | |||||||||||||||||||||||||||||||||||||||||||||||||
01/25/2011 | reported referred to codes | |||||||||||||||||||||||||||||||||||||||||||||||||
01/26/2011 | amend (t) and recommit to codes | |||||||||||||||||||||||||||||||||||||||||||||||||
01/26/2011 | print number 2674a | |||||||||||||||||||||||||||||||||||||||||||||||||
01/31/2011 | reported referred to rules | |||||||||||||||||||||||||||||||||||||||||||||||||
01/31/2011 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
01/31/2011 | rules report cal.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
01/31/2011 | ordered to third reading rules cal.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
04/11/2011 | ruling of chair on point of order | |||||||||||||||||||||||||||||||||||||||||||||||||
04/11/2011 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
04/11/2011 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
04/11/2011 | REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT | |||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2012 | DIED IN SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2012 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2012 | ordered to third reading cal.117 | |||||||||||||||||||||||||||||||||||||||||||||||||
01/18/2012 | committed to housing |
A02674 Floor Votes:
Yes
Abbate
Yes
Clark
No
Goodell
Yes
Lentol
No
Murray
No
Saladino
Yes
Abinanti
Yes
Colton
Yes
Gottfried
Yes
Lifton
Yes
Nolan
No
Sayward
No
Amedore
No
Conte
No
Graf
Yes
Linares
No
Oaks
Yes
Scarborough
ER
Arroyo
Yes
Cook
No
Gunther
No
Lopez PD
Yes
O'Donnell
Yes
Schimel
Yes
Aubry
No
Corwin
No
Hanna
Yes
Lopez VJ
Yes
Ortiz
No
Schimminger
No
Barclay
Yes
Crespo
No
Hawley
No
Losquadro
No
Palmesano
Yes
Schroeder
Yes
Barron
No
Crouch
No
Hayes
Yes
Lupardo
Yes
Paulin
Yes
Simotas
Yes
Benedetto
No
Curran
Yes
Heastie
Yes
Magee
Yes
Peoples Stokes
No
Smardz
Yes
Bing
Yes
Cusick
Yes
Hevesi
Yes
Magnarelli
Yes
Perry
Yes
Spano
No
Blankenbush
Yes
Cymbrowitz
Yes
Hikind
Yes
Maisel
Yes
Pheffer
Yes
Stevenson
Yes
Boyland
Yes
DenDekker
Yes
Hooper
No
Malliotakis
Yes
Pretlow
Yes
Sweeney
No
Boyle
Yes
Destito
Yes
Hoyt
Yes
Markey
No
Ra
No
Tedisco
Yes
Braunstein
Yes
Dinowitz
Yes
Jacobs
No
McDonough
No
Rabbitt
No
Tenney
Yes
Brennan
No
Duprey
Yes
Jaffee
Yes
McEneny
No
Raia
Yes
Thiele
Yes
Bronson
Yes
Englebright
Yes
Jeffries
No
McKevitt
Yes
Ramos
Yes
Titone
Yes
Brook Krasny
Yes
Farrell
No
Johns
No
McLaughlin
No
Reilich
Yes
Titus
No
Burling
No
Finch
No
Jordan
Yes
Meng
Yes
Reilly
No
Tobacco
No
Butler
No
Fitzpatrick
No
Katz
No
Miller D
Yes
Rivera J
Yes
Weinstein
Yes
Cahill
No
Friend
Yes
Kavanagh
No
Miller JM
Yes
Rivera N
Yes
Weisenberg
No
Calhoun
No
Gabryszak
Yes
Kellner
Yes
Miller MG
Yes
Rivera PM
Yes
Weprin
Yes
Camara
Yes
Galef
No
Kirwan
Yes
Millman
Yes
Roberts
Yes
Wright
Yes
Canestrari
No
Gantt
No
Kolb
No
Molinaro
Yes
Robinson
Yes
Zebrowski
Yes
Castelli
Yes
Gibson
Yes
Lancman
No
Montesano
Yes
Rodriguez
Yes
Mr. Speaker
Yes
Castro
No
Giglio
Yes
Latimer
Yes
Morelle
Yes
Rosenthal
No
Ceretto
ER
Glick
Yes
Lavine
Yes
Moya
Yes
Russell
‡ Indicates voting via videoconference
A02674 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 2674--A 2011-2012 Regular Sessions IN ASSEMBLY January 19, 2011 ___________ Introduced by M. of A. V. LOPEZ, SILVER, FARRELL, GLICK, PRETLOW, WRIGHT, BING, O'DONNELL, ROSENTHAL, JEFFRIES, SPANO -- Multi-Sponsored by -- M. of A. ABINANTI, ARROYO, BENEDETTO, BOYLAND, BROOK-KRASNY, COLTON, CYMBROWITZ, DenDEKKER, DINOWITZ, GIBSON, GOTTFRIED, JAFFEE, KELLNER, LANCMAN, LENTOL, LINARES, MAISEL, MILLMAN, PERRY, PHEFFER, ROBINSON, STEVENSON, TITUS, WEPRIN -- read once and referred to the Committee on Housing -- reported and referred to the Committee on Codes -- 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, the emergency tenant protection act of nineteen seventy-four and the emer- gency housing rent control law, in relation to recovery of certain housing accommodations by a landlord (Part A); to amend the adminis- trative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to limiting rent increase after vacancy of a housing accommodation (Part B); to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to the declaration of emergencies for certain rental housing accommodations (Part C); to amend the local emergency housing rent control act, in relation to rent regulation laws (Part D); 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, the emergency housing rent control law, chapter 329 of the laws of 1963 amending the emergency housing rent control law relating to recontrol of rents in Albany, 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 residential property to cooperative or condominium ownership in the city of New York, 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 and the rent regulation reform act of 1997, in relation to extending the effectiveness thereof (Part E); to amend the administra- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08273-03-1A. 2674--A 2 tive code of the city of New York, the emergency tenant protection act of nineteen seventy-four, and the emergency housing rent control law, in relation to adjustment of maximum allowable rent (Part F); to repeal paragraph 13 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, paragraph (n) of subdivision 2 of section 2 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, and section 26-504.2 and subpara- graph (k) of paragraph 2 of subdivision e of section 26-403 of the administrative code of the city of New York, relating to vacancy decontrol (Part G); to amend the emergency tenant protection act of nineteen seventy-four and the administrative code of the city of New York, in relation to the regulation of rents (Part H); to amend the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to hardship applications (Part I); to amend the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four and the emergency housing rent control law, in relation to extending the length of time over which major capital improvement expenses may be recovered (Part J); to amend the emergency tenant protection act of nineteen seventy-four, in relation to the declaration of housing emer- gencies for rental housing accommodations located in buildings owned by certain limited-profit housing companies (Part K); and to amend the emergency tenant protection act of nineteen seventy-four, the emergen- cy housing rent control law, the administrative code of the city of New York and the tax law, in relation to deregulation thresholds (Part L) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 related to rent regulations in the state of New York. Each component is 3 wholly contained within a Part identified as Parts A through L. The 4 effective date for each particular provision contained within such Part 5 is set forth in the last section of such Part. Any provision in any 6 section contained within a Part, including the effective date of the 7 Part, which makes reference to a section "of this act", when used in 8 connection with that particular component, shall be deemed to mean and 9 refer to the corresponding section of the Part in which it is found. 10 Section three of this act sets forth the general effective date of this 11 act. 12 PART A 13 Section 1. Paragraph 1 of subdivision b of section 26-408 of the 14 administrative code of the city of New York is amended to read as 15 follows: 16 (1) The landlord seeks in good faith to recover possession of a hous- 17 ing accommodation because of immediate and compelling necessity for his 18 or her own personal use and occupancy as his or her primary residence or 19 for the use and occupancy of his or her immediate family as their prima- 20 ry residence provided, however, that this subdivision shall permit 21 recovery of only one housing accommodation and shall not apply where a 22 member of the household lawfully occupying the housing accommodation isA. 2674--A 3 1 sixty-two years of age or older, has been a tenant in a housing accommo- 2 dation in that building for twenty years or more, or has an impairment 3 which results from anatomical, physiological or psychological condi- 4 tions, other than addiction to alcohol, gambling, or any controlled 5 substance, which are demonstrable by medically acceptable clinical and 6 laboratory diagnostic techniques, and which are expected to be permanent 7 and which prevent the tenant from engaging in any substantial gainful 8 employment; or 9 § 2. Subparagraph (b) of paragraph 9 of subdivision c of section 10 26-511 of the administrative code of the city of New York is amended to 11 read as follows: 12 (b) where he or she seeks to recover possession of one [or more] 13 dwelling [units] unit because of immediate and compelling necessity for 14 his or her own personal use and occupancy as his or her primary resi- 15 dence [in the city of New York and/or] or for the use and occupancy of a 16 member of his or her immediate family as his or her primary residence 17 [in the city of New York], provided however, that this subparagraph 18 shall permit recovery of only one dwelling unit and shall not apply 19 where a tenant or the spouse of a tenant lawfully occupying the dwelling 20 unit is sixty-two years of age or older, has been a tenant in a dwelling 21 unit in that building for twenty years or more, or has an impairment 22 which results from anatomical, physiological or psychological condi- 23 tions, other than addiction to alcohol, gambling, or any controlled 24 substance, which are demonstrable by medically acceptable clinical and 25 laboratory diagnostic techniques, and which are expected to be permanent 26 and which prevent the tenant from engaging in any substantial gainful 27 employment, unless such owner offers to provide and if requested, 28 provides an equivalent or superior housing accommodation at the same or 29 lower stabilized rent in a closely proximate area. The provisions of 30 this subparagraph shall only permit one of the individual owners of any 31 building to recover possession of one [or more] dwelling [units] unit 32 for his or her own personal use and/or for that of his or her immediate 33 family. [Any] A dwelling unit recovered by an owner pursuant to this 34 subparagraph shall not for a period of three years be rented, leased, 35 subleased or assigned to any person other than a person for whose bene- 36 fit recovery of the dwelling unit is permitted pursuant to this subpara- 37 graph or to the tenant in occupancy at the time of recovery under the 38 same terms as the original lease. This subparagraph shall not be deemed 39 to establish or eliminate any claim that the former tenant of the dwell- 40 ing unit may otherwise have against the owner. Any such rental, lease, 41 sublease or assignment during such period to any other person may be 42 subject to a penalty of a forfeiture of the right to any increases in 43 residential rents in such building for a period of three years; or 44 § 3. Subdivision a of section 10 of section 4 of chapter 576 of the 45 laws of 1974, constituting the emergency tenant protection act of nine- 46 teen seventy-four, as amended by chapter 234 of the laws of 1984, is 47 amended to read as follows: 48 a. For cities having a population of less than one million and towns 49 and villages, the state division of housing and community renewal shall 50 be empowered to implement this act by appropriate regulations. Such 51 regulations may encompass such speculative or manipulative practices or 52 renting or leasing practices as the state division of housing and commu- 53 nity renewal determines constitute or are likely to cause circumvention 54 of this act. Such regulations shall prohibit practices which are likely 55 to prevent any person from asserting any right or remedy granted by this 56 act, including but not limited to retaliatory termination of periodicA. 2674--A 4 1 tenancies and shall require owners to grant a new one or two year vacan- 2 cy or renewal lease at the option of the tenant, except where a mortgage 3 or mortgage commitment existing as of the local effective date of this 4 act provides that the owner shall not grant a one-year lease; and shall 5 prescribe standards with respect to the terms and conditions of new and 6 renewal leases, additional rent and such related matters as security 7 deposits, advance rental payments, the use of escalator clauses in leas- 8 es and provision for increase in rentals for garages and other ancillary 9 facilities, so as to insure that the level of rent adjustments author- 10 ized under this law will not be subverted and made ineffective. Any 11 provision of the regulations permitting an owner to refuse to renew a 12 lease on grounds that the owner seeks to recover possession of [the] a 13 housing accommodation for his or her own use and occupancy or for the 14 use and occupancy of his or her immediate family shall permit recovery 15 of only one housing accommodation, shall require that an owner demon- 16 strate immediate and compelling need and that the housing accommodation 17 will be the proposed occupants' primary residence and shall not apply 18 where a member of the housing accommodation is sixty-two years of age or 19 older, has been a tenant in a housing accommodation in that building for 20 twenty years or more, or has an impairment which results from anatom- 21 ical, physiological or psychological conditions, other than addiction to 22 alcohol, gambling, or any controlled substance, which are demonstrable 23 by medically acceptable clinical and laboratory diagnostic techniques, 24 and which are expected to be permanent and which prevent the tenant from 25 engaging in any substantial gainful employment. 26 § 4. Paragraph (a) of subdivision 2 of section 5 of chapter 274 of the 27 laws of 1946, constituting the emergency housing rent control law, as 28 amended by chapter 234 of the laws of 1984, is amended to read as 29 follows: 30 (a) the landlord seeks in good faith to recover possession of a hous- 31 ing [accommodations] accommodation because of immediate and compelling 32 necessity for his or her own personal use and occupancy as his or her 33 primary residence or for the use and occupancy of his or her immediate 34 family as their primary residence; provided, however, this subdivision 35 shall permit recovery of only one housing accommodation and shall not 36 apply where a member of the household lawfully occupying the housing 37 accommodation is sixty-two years of age or older, has been a tenant in a 38 housing accommodation in that building for twenty years or more, or has 39 an impairment which results from anatomical, physiological or psycholog- 40 ical conditions, other than addiction to alcohol, gambling, or any 41 controlled substance, which are demonstrable by medically acceptable 42 clinical and laboratory diagnostic techniques, and which are expected to 43 be permanent and which prevent the tenant from engaging in any substan- 44 tial gainful employment; or 45 § 5. This act shall take effect immediately and shall apply to any 46 tenant in possession at or after the time it takes effect, regardless of 47 whether the landlord's application for an order, refusal to renew a 48 lease or refusal to extend or renew a tenancy took place before this act 49 shall have taken effect, provided that: 50 a. the amendments to section 26-408 of the city rent and rehabili- 51 tation law made by section one of this act shall remain in full force 52 and effect only as long as the public emergency requiring the regulation 53 and control of residential rents and evictions continues, as provided in 54 subdivision 3 of section 1 of the local emergency housing rent control 55 act;A. 2674--A 5 1 b. the amendments to section 26-511 of the rent stabilization law of 2 nineteen hundred sixty-nine made by section two of this act shall expire 3 on the same date as such law expires and shall not affect the expiration 4 of such law as provided under section 26-520 of such law; 5 c. the amendments to subdivision a of section 10 of section 4 of the 6 emergency tenant protection act of nineteen seventy-four made by section 7 three of this act shall expire on the same date as such act expires and 8 shall not affect the expiration of such act as provided in section 17 of 9 chapter 576 of the laws of 1974; and 10 d. the amendments to paragraph (a) of subdivision 2 of section 5 of 11 the emergency housing rent control law made by section four of this act 12 shall expire on the same date as such law expires and shall not affect 13 the expiration of such law as provided in subdivision 2 of section 1 of 14 chapter 274 of the laws of 1946. 15 PART B 16 Section 1. Paragraph 5-a of subdivision c of section 26-511 of the 17 administrative code of the city of New York, as added by chapter 116 of 18 the laws of 1997, is amended to read as follows: 19 (5-a) provides that, notwithstanding any provision of this chapter, 20 the legal regulated rent for any vacancy lease entered into after the 21 effective date of this paragraph shall be as hereinafter provided in 22 this paragraph. The previous legal regulated rent for such housing 23 accommodation shall be increased by the following: (i) if the vacancy 24 lease is for a term of two years, [twenty] ten percent of the previous 25 legal regulated rent; or (ii) if the vacancy lease is for a term of one 26 year the increase shall be [twenty] ten percent of the previous legal 27 regulated rent less an amount equal to the difference between (a) the 28 two year renewal lease guideline promulgated by the guidelines board of 29 the city of New York applied to the previous legal regulated rent and 30 (b) the one year renewal lease guideline promulgated by the guidelines 31 board of the city of New York applied to the previous legal regulated 32 rent. In addition, if the legal regulated rent was not increased with 33 respect to such housing accommodation by a permanent vacancy allowance 34 within eight years prior to a vacancy lease executed on or after the 35 effective date of this paragraph, the legal regulated rent may be 36 further increased by an amount equal to the product resulting from 37 multiplying such previous legal regulated rent by six-tenths of one 38 percent and further multiplying the amount of rent increase resulting 39 therefrom by the greater of (A) the number of years since the imposition 40 of the last permanent vacancy allowance, or (B) if the rent was not 41 increased by a permanent vacancy allowance since the housing accommo- 42 dation became subject to this chapter, the number of years that such 43 housing accommodation has been subject to this chapter. Provided that if 44 the previous legal regulated rent was less than three hundred dollars 45 the total increase shall be as calculated above plus one hundred dollars 46 per month. Provided, further, that if the previous legal regulated rent 47 was at least three hundred dollars and no more than five hundred dollars 48 in no event shall the total increase pursuant to this paragraph be less 49 than one hundred dollars per month. Such increase shall be in lieu of 50 any allowance authorized for the one or two year renewal component ther- 51 eof, but shall be in addition to any other increases authorized pursuant 52 to this chapter including an adjustment based upon a major capital 53 improvement, or a substantial modification or increase of dwelling space 54 or services, or installation of new equipment or improvements or newA. 2674--A 6 1 furniture or furnishings provided in or to the housing accommodation 2 pursuant to this section. The increase authorized in this paragraph may 3 not be implemented more than one time in any calendar year notwithstand- 4 ing the number of vacancy leases entered into in such year. 5 § 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of 6 the laws of 1974, constituting the emergency tenant protection act of 7 nineteen seventy-four, as added by chapter 116 of the laws of 1997, is 8 amended to read as follows: 9 (a-1) provides that, notwithstanding any provision of this act, the 10 legal regulated rent for any vacancy lease entered into after the effec- 11 tive date of this subdivision shall be as hereinafter set forth. The 12 previous legal regulated rent for such housing accommodation shall be 13 increased by the following: (i) if the vacancy lease is for a term of 14 two years, [twenty] ten percent of the previous legal regulated rent; or 15 (ii) if the vacancy lease is for a term of one year the increase shall 16 be [twenty] ten percent of the previous legal regulated rent less an 17 amount equal to the difference between (a) the two year renewal lease 18 guideline promulgated by the guidelines board of the county in which the 19 housing accommodation is located applied to the previous legal regulated 20 rent and (b) the one year renewal lease guideline promulgated by the 21 guidelines board of the county in which the housing accommodation is 22 located applied to the previous legal regulated rent. In addition, if 23 the legal regulated rent was not increased with respect to such housing 24 accommodation by a permanent vacancy allowance within eight years prior 25 to a vacancy lease executed on or after the effective date of this 26 subdivision, the legal regulated rent may be further increased by an 27 amount equal to the product resulting from multiplying such previous 28 legal regulated rent by six-tenths of one percent and further multiply- 29 ing the amount of rent increase resulting therefrom by the greater of 30 (A) the number of years since the imposition of the last permanent 31 vacancy allowance, or (B) if the rent was not increased by a permanent 32 vacancy allowance since the housing accommodation became subject to this 33 act, the number of years that such housing accommodation has been 34 subject to this act. Provided that if the previous legal regulated rent 35 was less than three hundred dollars the total increase shall be as 36 calculated above plus one hundred dollars per month. Provided, further, 37 that if the previous legal regulated rent was at least three hundred 38 dollars and no more than five hundred dollars in no event shall the 39 total increase pursuant to this subdivision be less than one hundred 40 dollars per month. Such increase shall be in lieu of any allowance 41 authorized for the one or two year renewal component thereof, but shall 42 be in addition to any other increases authorized pursuant to this act 43 including an adjustment based upon a major capital improvement, or a 44 substantial modification or increase of dwelling space or services, or 45 installation of new equipment or improvements or new furniture or 46 furnishings provided in or to the housing accommodation pursuant to 47 section six of this act. The increase authorized in this subdivision 48 may not be implemented more than one time in any calendar year notwith- 49 standing the number of vacancy leases entered into in such year. 50 § 3. This act shall take effect immediately; provided that the amend- 51 ments to section 26-511 of the rent stabilization law of nineteen 52 hundred sixty-nine made by section one of this act shall expire on the 53 same date as such law expires and shall not affect the expiration of 54 such law as provided under section 26-520 of such law; and provided, 55 further, that the amendments to section 4 of the emergency tenant 56 protection act of nineteen seventy-four made by section two of this actA. 2674--A 7 1 shall expire on the same date as such act expires and shall not affect 2 the expiration of such act as provided in section 17 of chapter 576 of 3 the laws of 1974. 4 PART C 5 Section 1. Subdivision a of section 26-504 of the administrative code 6 of the city of New York, subparagraph (f) of paragraph 1 as amended by 7 chapter 422 of the laws of 2010, is amended to read as follows: 8 a. Class A multiple dwellings not owned as a cooperative or as a 9 condominium, except as provided in section three hundred fifty-two-eeee 10 of the general business law, containing six or more dwelling units 11 which: (1) were completed after February first, nineteen hundred 12 forty-seven, except dwelling units (a) owned or leased by, or financed 13 by loans from, a public agency or public benefit corporation, (b) 14 subject to rent regulation under the private housing finance law or any 15 other state law, (c) aided by government insurance under any provision 16 of the national housing act, to the extent this chapter or any regu- 17 lation or order issued thereunder is inconsistent therewith, or (d) 18 located in a building for which a certificate of occupancy is obtained 19 after March tenth, nineteen hundred sixty-nine[;], or (e) any class A 20 multiple dwelling which on June first, nineteen hundred sixty-eight was 21 and still is commonly regarded as a hotel, transient hotel or residen- 22 tial hotel, and which customarily provides hotel service such as maid 23 service, furnishing and laundering of linen, telephone and bell boy 24 service, secretarial or desk service and use and upkeep of furniture and 25 fixtures, or (f) not occupied by the tenant, not including subtenants or 26 occupants, as his or her primary residence, as determined by a court of 27 competent jurisdiction, provided, however that no action or proceeding 28 shall be commenced seeking to recover possession on the ground that a 29 housing accommodation is not occupied by the tenant as his or her prima- 30 ry residence unless the owner or lessor shall have given thirty days 31 notice to the tenant of his or her intention to commence such action or 32 proceeding on such grounds. For the purposes of determining primary 33 residency, a tenant who is a victim of domestic violence, as defined in 34 section four hundred fifty-nine-a of the social services law, who has 35 left the unit because of such violence, and who asserts an intent to 36 return to the housing accommodation shall be deemed to be occupying the 37 unit as his or her primary residence. For the purposes of this subpara- 38 graph where a housing accommodation is rented to a not-for-profit hospi- 39 tal for residential use, affiliated subtenants authorized to use such 40 accommodations by such hospital shall be deemed to be tenants, or (g) 41 became vacant on or after June thirtieth, nineteen hundred seventy-one, 42 or become vacant, provided however, that this exemption shall not apply 43 or become effective with respect to housing accommodations which the 44 commissioner determines or finds became vacant because the landlord or 45 any person acting on his or her behalf, with intent to cause the tenant 46 to vacate, engaged in any course of conduct (including but not limited 47 to, interruption or discontinuance of essential services) which inter- 48 fered with or disturbed or was intended to interfere with or disturb the 49 comfort, repose, peace or quiet of the tenant in his or her use or occu- 50 pancy of the housing accommodations and provided further that any hous- 51 ing accommodations exempted by this paragraph shall be subject to this 52 law to the extent provided in subdivision b of this section; or (2) were 53 decontrolled by the city rent agency pursuant to section 26-414 of this 54 title; or (3) are exempt from control by virtue of item one, two, six orA. 2674--A 8 1 seven of subparagraph (i) of paragraph two of subdivision e of section 2 26-403 of this title; or (4) were covered by a project based assistance 3 contract pursuant to section eight of the United States housing act of 4 1937 which contract is no longer in effect, notwithstanding the 5 provisions of subparagraph (d) or (g) of paragraph one of this subdivi- 6 sion or paragraph five of subdivision a of section five of the emergency 7 tenant protection act of nineteen seventy-four provided however, that 8 any dwelling unit which becomes subject to this law pursuant to this 9 paragraph shall not be subject to the provisions of subdivision a of 10 section 26-513 of this chapter; and 11 § 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti- 12 tuting the emergency tenant protection act of nineteen seventy-four is 13 amended by adding a new subdivision c to read as follows: 14 c. Notwithstanding the provisions of paragraph five of subdivision a 15 of this section but subject to any other applicable exceptions in such 16 subdivision, nothing shall prevent the declaration of an emergency 17 pursuant to section three of section four of this act for rental housing 18 accommodations located in a building which was covered by a project 19 based assistance contract pursuant to section eight of the United States 20 housing act of 1937 which contract is no longer in effect provided 21 however, that any housing accommodation which becomes subject to this 22 act pursuant to this subdivision shall not be subject to the provisions 23 of subdivision a of section nine of section four of this act. 24 § 3. This act shall take effect immediately and shall apply to all 25 buildings which are covered by a project based assistance contract 26 pursuant to section eight of the United States housing act of 1937 which 27 contract ceased to be effective on or after such date; provided, howev- 28 er, that the amendment to subdivision a of section 26-504 of the admin- 29 istrative code of the city of New York made by section one of this act 30 shall not affect the expiration of such section pursuant to section 31 26-520 of such code and shall expire therewith; and provided, further, 32 that the amendment to section 5 of the emergency tenant protection act 33 of nineteen seventy-four made by section two of this act shall not 34 affect the expiration of such act as provided in section 17 of chapter 35 576 of the laws of 1974, as amended, and shall expire therewith. 36 PART D 37 Section 1. Subdivision 5 of section 1 of chapter 21 of the laws of 38 1962, constituting the local emergency housing rent control act, as 39 amended by chapter 82 of the laws of 2003 and the closing paragraph as 40 amended by chapter 422 of the laws of 2010, is amended to read as 41 follows: 42 5. Authority for local rent control legislation. Each city having a 43 population of one million or more, acting through its local legislative 44 body, may adopt and amend local laws or ordinances in respect of the 45 establishment or designation of a city housing rent agency. When it 46 deems such action to be desirable or necessitated by local conditions in 47 order to carry out the purposes of this section, such city, except as 48 hereinafter provided, acting through its local legislative body and not 49 otherwise, may adopt and amend local laws or ordinances in respect of 50 the regulation and control of residential rents, including but not 51 limited to provision for the establishment and adjustment of maximum 52 rents, the classification of housing accommodations, the regulation of 53 evictions, and the enforcement of such local laws or ordinances. The 54 validity of any such local laws or ordinances, and the rules or regu-A. 2674--A 9 1 lations promulgated in accordance therewith, shall not be affected by 2 and need not be consistent with the state emergency housing rent control 3 law or with rules and regulations of the state division of housing and 4 community renewal. 5 Notwithstanding any local law or ordinance, housing accommodations 6 which became vacant on or after July first, nineteen hundred seventy-one 7 or which hereafter become vacant shall be subject to the provisions of 8 the emergency tenant protection act of nineteen seventy-four, provided, 9 however, that this provision shall not apply or become effective with 10 respect to housing accommodations which, by local law or ordinance, are 11 made directly subject to regulation and control by a city housing rent 12 agency and such agency determines or finds that the housing accommo- 13 dations became vacant because the landlord or any person acting on his 14 behalf, with intent to cause the tenant to vacate, engaged in any course 15 of conduct (including but not limited to, interruption or discontinuance 16 of essential services) which interfered with or disturbed or was 17 intended to interfere with or disturb the comfort, repose, peace or 18 quiet of the tenant in his use or occupancy of the housing accommo- 19 dations. The removal of any housing accommodation from regulation and 20 control of rents pursuant to the vacancy exemption provided for in this 21 paragraph shall not constitute or operate as a ground for the subjection 22 to more stringent regulation and control of any housing accommodation in 23 such property or in any other property owned by the same landlord, 24 notwithstanding any prior agreement to the contrary by the landlord. The 25 vacancy exemption provided for in this paragraph shall not arise with 26 respect to any rented plot or parcel of land otherwise subject to the 27 provisions of this act, by reason of a transfer of title and possession 28 occurring on or after July first, nineteen hundred seventy-one of a 29 dwelling located on such plot or parcel and owned by the tenant where 30 such transfer of title and possession is made to a member of the 31 tenant's immediate family provided that the member of the tenant's imme- 32 diate family occupies the dwelling with the tenant prior to the transfer 33 of title and possession for a continuous period of two years. 34 The term "immediate family" shall include a husband, wife, son, daugh- 35 ter, stepson, stepdaughter, father, mother, father-in-law or mother-in- 36 law. 37 [Notwithstanding the foregoing, no local law or ordinance shall here-38after provide for the regulation and control of residential rents and39eviction in respect of any housing accommodations which are (1) present-40ly exempt from such regulation and control or (2) hereafter decontrolled41either by operation of law or by a city housing rent agency, by order or42otherwise. No housing accommodations presently subject to regulation and43control pursuant to local laws or ordinances adopted or amended under44authority of this subdivision shall hereafter be by local law or ordi-45nance or by rule or regulation which has not been theretofore approved46by the state commissioner of housing and community renewal subjected to47more stringent or restrictive provisions of regulation and control than48those presently in effect.49Notwithstanding any other provision of law, on and after the effective50date of this paragraph, a city having a population of one million or51more shall not, either through its local legislative body or otherwise,52adopt or amend local laws or ordinances with respect to the regulation53and control of residential rents and eviction, including but not limited54to provision for the establishment and adjustment of rents, the classi-55fication of housing accommodations, the regulation of evictions, and the56enforcement of such local laws or ordinances, or otherwise adopt laws orA. 2674--A 10 1ordinances pursuant to the provisions of this act, the emergency tenant2protection act of nineteen seventy-four, the New York city rent and3rehabilitation law or the New York city rent stabilization law, except4to the extent that such city for the purpose of reviewing the continued5need for the existing regulation and control of residential rents or to6remove a classification of housing accommodation from such regulation7and control adopts or amends local laws or ordinances pursuant to subdi-8vision three of section one of this act, section three of the emergency9tenant protection act of nineteen seventy-four, section 26-415 of the10New York city rent and rehabilitation law, and sections 26-502 and1126-520 of the New York city rent stabilization law of nineteen hundred12sixty-nine.] 13 Notwithstanding any provision of this act to the contrary, any local 14 law adopted pursuant to this act shall provide that notwithstanding any 15 provision of such local law in the case where all tenants occupying the 16 housing accommodation on the effective date of this paragraph have 17 vacated the housing accommodation and a family member of such vacating 18 tenant or tenants is entitled to and continues to occupy the housing 19 accommodation subject to the protections of such act, if such accommo- 20 dation continues to be subject to such act after such family member 21 vacates, on the occurrence of such vacancy the maximum collectable rent 22 shall be increased by a sum equal to the allowance then in effect for 23 vacancy leases for housing accommodations covered by the rent stabiliza- 24 tion law of nineteen hundred sixty-nine, including the amount allowed by 25 paragraph (5-a) of subdivision c of section 26-511 of such law. This 26 increase shall be in addition to any other increases provided for in 27 this act and shall be applicable in like manner to each second subse- 28 quent succession. 29 Notwithstanding the foregoing, no local law or ordinance shall subject 30 to such regulation and control any housing accommodation which is not 31 occupied by the tenant in possession as his or her primary residence; 32 provided, however, that such housing accommodation not occupied by the 33 tenant in possession as his or her primary residence shall continue to 34 be subject to regulation and control as provided for herein unless the 35 city housing rent agency issues an order decontrolling such accommo- 36 dation, which the agency shall do upon application by the landlord when- 37 ever it is established by any facts and circumstances which, in the 38 judgment of the agency, may have a bearing upon the question of resi- 39 dence, that the tenant maintains his or her primary residence at some 40 place other than at such housing accommodation. For the purposes of 41 determining primary residency, a tenant who is a victim of domestic 42 violence, as defined in section four hundred fifty-nine-a of the social 43 services law, who has left the unit because of such violence, and who 44 asserts an intent to return to the housing accommodation shall be deemed 45 to be occupying the unit as his or her primary residence. 46 § 2. This act shall take effect immediately; provided, however, that 47 the amendments to subdivision 5 of section 1 of chapter 21 of the laws 48 of 1962 made by section one of this act shall remain in full force and 49 effect only so long as the public emergency requiring the regulation and 50 control of residential rents and evictions continues, as provided in 51 subdivision 3 of section 1 of the local emergency housing rent control 52 act; provided further, however, that the amendment to the second undes- 53 ignated paragraph of subdivision 5 of section 1 of chapter 21 of the 54 laws of 1962 made by section one of this act shall not affect the expi- 55 ration of such paragraph and shall be deemed to expire therewith.A. 2674--A 11 1 PART E 2 Section 1. Section 17 of chapter 576 of the laws of 1974 amending the 3 emergency housing rent control law relating to the control of and 4 stabilization of rent in certain cases, as amended by chapter 82 of the 5 laws of 2003, is amended to read as follows: 6 § 17. Effective date. This act shall take effect immediately and 7 shall remain in full force and effect until and including the fifteenth 8 day of June [2011] 2016; except that sections two and three shall take 9 effect with respect to any city having a population of one million or 10 more and section one shall take effect with respect to any other city, 11 or any town or village whenever the local legislative body of a city, 12 town or village determines the existence of a public emergency pursuant 13 to section three of the emergency tenant protection act of nineteen 14 seventy-four, as enacted by section four of this act, and provided that 15 the housing accommodations subject on the effective date of this act to 16 stabilization pursuant to the New York city rent stabilization law of 17 nineteen hundred sixty-nine shall remain subject to such law upon the 18 expiration of this act. 19 § 2. Subdivision 2 of section 1 of chapter 274 of the laws of 1946 20 constituting the emergency housing rent control law, as amended by chap- 21 ter 82 of the laws of 2003, is amended to read as follows: 22 2. The provisions of this act, and all regulations, orders and 23 requirements thereunder shall remain in full force and effect until and 24 including June 15, [2011] 2016. 25 § 3. Section 2 of chapter 329 of the laws of 1963 amending the emer- 26 gency housing rent control law relating to recontrol of rents in Albany, 27 as amended by chapter 82 of the laws of 2003, is amended to read as 28 follows: 29 § 2. This act shall take effect immediately and the provisions of 30 subdivision 6 of section 12 of the emergency housing rent control law, 31 as added by this act, shall remain in full force and effect until and 32 including June 15, [2011] 2016. 33 § 4. Section 10 of chapter 555 of the laws of 1982 amending the gener- 34 al business law and the administrative code of the city of New York 35 relating to conversion of residential property to cooperative or condo- 36 minium ownership in the city of New York, as amended by chapter 82 of 37 the laws of 2003, is amended to read as follows: 38 § 10. This act shall take effect immediately; provided, that the 39 provisions of sections one, two and nine of this act shall remain in 40 full force and effect only until and including June 15, [2011] 2016; 41 provided further that the provisions of section three of this act shall 42 remain in full force and effect only so long as the public emergency 43 requiring the regulation and control of residential rents and evictions 44 continues as provided in subdivision 3 of section 1 of the local emer- 45 gency housing rent control act; provided further that the provisions of 46 sections four, five, six and seven of this act shall expire in accord- 47 ance with the provisions of section 26-520 of the administrative code of 48 the city of New York as such section of the administrative code is, from 49 time to time, amended; provided further that the provisions of section 50 26-511 of the administrative code of the city of New York, as amended by 51 this act, which the New York City Department of Housing Preservation and 52 Development must find are contained in the code of the real estate 53 industry stabilization association of such city in order to approve it, 54 shall be deemed contained therein as of the effective date of this act; 55 and provided further that any plan accepted for filing by the departmentA. 2674--A 12 1 of law on or before the effective date of this act shall continue to be 2 governed by the provisions of section 352-eeee of the general business 3 law as they had existed immediately prior to the effective date of this 4 act. 5 § 5. Section 4 of chapter 402 of the laws of 1983 amending the general 6 business law relating to conversion of rental residential property to 7 cooperative or condominium ownership in certain municipalities in the 8 counties of Nassau, Westchester and Rockland, as amended by chapter 82 9 of the laws of 2003, is amended to read as follows: 10 § 4. This act shall take effect immediately; provided, that the 11 provisions of sections one and three of this act shall remain in full 12 force and effect only until and including June 15, [2011] 2016; and 13 provided further that any plan accepted for filing by the department of 14 law on or before the effective date of this act shall continue to be 15 governed by the provisions of section 352-eee of the general business 16 law as they had existed immediately prior to the effective date of this 17 act. 18 § 6. Subdivision 6 of section 46 of chapter 116 of the laws of 1997 19 constituting the rent regulation reform act of 1997, as amended by chap- 20 ter 82 of the laws of 2003, is amended to read as follows: 21 6. sections twenty-eight, twenty-eight-a, twenty-eight-b and twenty- 22 eight-c of this act shall expire and be deemed repealed after June 15, 23 [2011] 2016; 24 § 7. This act shall take effect immediately. 25 PART F 26 Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section 27 26-405 of the administrative code of the city of New York, as amended by 28 chapter 253 of the laws of 1993, is amended to read as follows: 29 (e) The landlord and tenant by mutual voluntary written agreement 30 agree to a substantial increase or decrease in dwelling space or a 31 change in the services, furniture, furnishings or equipment provided in 32 the housing accommodations. An adjustment under this subparagraph shall 33 be equal to [one-fortieth] one-sixtieth of the total cost incurred by 34 the landlord in providing such modification or increase in dwelling 35 space, services, furniture, furnishings or equipment, including the cost 36 of installation, but excluding finance charges, provided further [than] 37 that an owner who is entitled to a rent increase pursuant to this 38 subparagraph shall not be entitled to a further rent increase based upon 39 the installation of similar equipment, or new furniture or furnishings 40 within the useful life of such new equipment, or new furniture or 41 furnishings. The owner shall give written notice to the city rent agency 42 of any such adjustment pursuant to this subparagraph[.]; or 43 § 2. Paragraph 13 of subdivision c of section 26-511 of the adminis- 44 trative code of the city of New York, as added by chapter 253 of the 45 laws of 1993, is amended to read as follows: 46 (13) provides that an owner is entitled to a rent increase where there 47 has been a substantial modification or increase of dwelling space or an 48 increase in the services, or installation of new equipment or improve- 49 ments or new furniture or furnishings provided in or to a tenant's hous- 50 ing accommodation, on written tenant consent to the rent increase. In 51 the case of a vacant housing accommodation, tenant consent shall not be 52 required. 53 (a) The permanent increase in the legal regulated rent for the 54 affected housing accommodation shall be [one-fortieth] one-sixtieth ofA. 2674--A 13 1 the total cost incurred by the landlord in providing such modification 2 or increase in dwelling space, services, furniture, furnishings or 3 equipment, including the cost of installation, but excluding finance 4 charges. [Provided further that an] 5 (b) An owner who is entitled to a rent increase pursuant to this para- 6 graph shall not be entitled to a further rent increase based upon the 7 installation of similar equipment, or new furniture or furnishings with- 8 in the useful life of such new equipment, or new furniture or 9 furnishings. 10 (c) No increase shall be collectible under this paragraph until the 11 landlord has provided the tenant with a rider pursuant to subdivision d 12 of this section, including an explanation of how the rent in the vacancy 13 lease has been computed, and the specific amounts of all expenditures 14 supporting a rent increase under this paragraph. 15 (d) No increase shall be collectible under this paragraph where the 16 division of housing and community renewal has determined that the owner 17 is not maintaining all building-wide required services or all required 18 services with respect to the affected housing accommodation, or where 19 there are current hazardous violations of any municipal, county, state 20 or federal law which relate to the maintenance of such services. 21 (e) Within thirty days of the signing of a vacancy lease including a 22 rent increase pursuant to this paragraph that exceeds ten percent of the 23 rent charged to the previous tenant, the owner will file with the divi- 24 sion of housing and community renewal an explanation of how the vacancy 25 rent was computed, and all documents necessary to support the collection 26 of such increase, including but not limited to, cancelled checks, 27 invoices and signed contracts contemporaneously with the improvements 28 alleged, and contractor's affidavits indicating that the installation 29 was completed and paid in full. Upon receipt of all documents submitted 30 by the owner, and after giving the tenant named in such vacancy lease an 31 opportunity to respond, the division of housing and community renewal 32 shall issue an order approving or disapproving such increase in whole or 33 in part. Based upon such determination, the division of housing and 34 community renewal shall order a refund to the tenant equal to the amount 35 collected in excess of the legal regulated rent approved by the division 36 of housing and community renewal. 37 (f) If the owner fails to establish by a preponderance of the evidence 38 that the overcharge was not willful, the division of housing and commu- 39 nity renewal shall order the owner to pay to the tenant an additional 40 amount equal to three times the excess charged. 41 (g) The next annual registration statement filed for any housing 42 accommodation subject to an increase under this paragraph, whether or 43 not subject to the provisions of subparagraph (e) of this paragraph 44 shall contain a detailed breakdown of the costs of all improvements 45 underlying such increase. 46 § 3. Paragraph 2 of subdivision d of section 26-511 of the administra- 47 tive code of the city of New York is renumbered paragraph 3 and a new 48 paragraph 2 is added to read as follows: 49 (2) For vacancy leases, such rider shall also include a notice of the 50 prior legal rent, if any, that was in effect immediately prior to the 51 vacancy, an explanation of how the rental amount has been computed, 52 including a detailed breakdown of the nature and cost of any improve- 53 ments underlying an increase under paragraph thirteen of subdivision c 54 of this section, and a statement that any increase above the previous 55 rent is in accordance with adjustments permitted by law.A. 2674--A 14 1 § 4. Paragraph 1 of subdivision d of section 6 of section 4 of chapter 2 576 of the laws of 1974, constituting the emergency tenant protection 3 act of nineteen seventy-four, as added by chapter 253 of the laws of 4 1993, is amended to read as follows: 5 (1) there has been a substantial modification or increase of dwelling 6 space or an increase in the services, or installation of new equipment 7 or improvements or new furniture or furnishings, provided in or to a 8 tenant's housing accommodation, on written tenant consent to the rent 9 increase. In the case of a vacant housing accommodation, tenant consent 10 shall not be required. (a) The permanent increase in the legal regulated 11 rent for the affected housing accommodation shall be [one-fortieth] 12 one-sixtieth of the total cost incurred by the landlord in providing 13 such modification or increase in dwelling space, services, furniture, 14 furnishings or equipment, including the cost of installation, but 15 excluding finance charges. [Provided further than an] (b) An owner who 16 is entitled to a rent increase pursuant to this paragraph shall not be 17 entitled to a further rent increase based upon the installation of simi- 18 lar equipment, or new furniture or furnishings within the useful life of 19 such new equipment, or new furniture or furnishings. (c) The owner 20 shall give written notice to the division of housing and community 21 renewal and the tenant named in a vacancy lease on forms prescribed by 22 the division of any such adjustment pursuant to this paragraph and the 23 failure to provide such written notice as provided herein shall preclude 24 the collection of any such adjustment. Such notice must include a 25 detailed breakdown of the nature and cost of any improvements underlying 26 an increase in rent under this paragraph and a statement that any 27 increase above the previous rent is in accordance with adjustments 28 permitted by law. (d) No increase shall be collectible under this para- 29 graph where the division of housing and community renewal has determined 30 that the owner is not maintaining all building-wide required services or 31 all required services with respect to the affected housing accommo- 32 dation, or where there are current hazardous violations of any munici- 33 pal, county, state or federal law which relate to the maintenance of 34 such services. (e) Within thirty days of the signing of a vacancy lease 35 including a rent increase pursuant to this paragraph that exceeds ten 36 percent of the rent charged to the previous tenant, the owner will file 37 with the division an explanation of how the vacancy rent was computed, 38 and all documents necessary to support the collection of such increase, 39 including but not limited to, cancelled checks, invoices and signed 40 contracts contemporaneously with the improvements alleged, and contrac- 41 tor's affidavits indicating that the installation was completed and paid 42 in full. Upon receipt of all documents submitted by the owner and after 43 giving the tenant named in the vacancy lease an opportunity to respond, 44 the division shall issue an order approving or disapproving such 45 increase in whole or in part. Based upon such determination, the divi- 46 sion shall order a refund to the tenant equal to the amount collected in 47 excess of the legal regulated rent approved by the division. (f) If the 48 owner fails to establish by a preponderance of the evidence that the 49 overcharge was not willful, the division shall order the owner to pay to 50 the tenant an additional amount equal to three times the excess charged. 51 (g) The next annual registration statement filed for any housing accom- 52 modation subject to an increase under this paragraph, whether or not 53 subject to the provisions of subparagraph (e) of this paragraph shall 54 contain a detailed breakdown of the costs of all improvements underlying 55 such increase.A. 2674--A 15 1 § 5. Clause 5 of the second undesignated paragraph of paragraph (a) of 2 subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti- 3 tuting the emergency housing rent control law, as amended by chapter 253 4 of the laws of 1993, is amended to read as follows: 5 (5) the landlord and tenant by mutual voluntary written agreement 6 agree to a substantial increase or decrease in dwelling space or a 7 change in the services, furniture, furnishings or equipment provided in 8 the housing accommodations; provided that an owner shall be entitled to 9 a rent increase where there has been a substantial modification or 10 increase of dwelling space or an increase in the services, or installa- 11 tion of new equipment or improvements or new furniture or furnishings 12 provided in or to a tenant's housing accommodation. The permanent 13 increase in the maximum rent for the affected housing accommodation 14 shall be [one-fortieth] one-sixtieth of the total cost incurred by the 15 landlord in providing such modification or increase in dwelling space, 16 services, furniture, furnishings or equipment, including the cost of 17 installation, but excluding finance charges provided further that an 18 owner who is entitled to a rent increase pursuant to this clause shall 19 not be entitled to a further rent increase based upon the installation 20 of similar equipment, or new furniture or furnishings within the useful 21 life of such new equipment, or new furniture or furnishings. The owner 22 shall give written notice to the commission of any such adjustment 23 pursuant to this clause; or 24 § 6. This act shall take effect on the ninetieth day after it shall 25 have become a law; provided that: 26 (a) the amendments to section 26-405 of the city rent and rehabili- 27 tation law made by section one of this act shall remain in full force 28 and effect only as long as the public emergency requiring the regulation 29 and control of residential rents and evictions continues, as provided in 30 subdivision 3 of section 1 of the local emergency housing rent control 31 act; 32 (b) the amendments to chapter 4 of title 26 of the administrative code 33 of the city of New York made by sections two and three of this act shall 34 expire on the same date as such law expires and shall not affect the 35 expiration of such law as provided under section 26-520 of such law; 36 (c) the amendments to the emergency tenant protection act of nineteen 37 seventy-four made by section four of this act shall expire on the same 38 date as such act expires and shall not affect the expiration of such act 39 as provided in section 17 of chapter 576 of the laws of 1974; 40 (d) the amendments to section 4 of the emergency housing rent control 41 law made by section five of this act shall expire on the same date as 42 such law expires and shall not affect the expiration of such law as 43 provided in subdivision 2 of section 1 of chapter 274 of the laws of 44 1946; and 45 (e) effective immediately, the division of housing and community 46 renewal is authorized to and shall promulgate all rules, regulations and 47 standards necessary to implement the provisions of this act. 48 PART G 49 Section 1. Legislative findings and declaration of emergency. The 50 legislature hereby finds and declares that the serious public emergency 51 which led to the enactment of the existing laws regulating residential 52 rents and evictions continues to exist; that such laws would better 53 serve the public interest if certain changes were made thereto, includ- 54 ing the continued regulation of certain housing accommodations thatA. 2674--A 16 1 become vacant and the reinstatement of regulation of certain housing 2 accommodations that have been deregulated upon vacancy. 3 The legislature further recognizes that severe disruption of the 4 rental housing market has occurred and threatens to be exacerbated as a 5 result of the present state of the law in relation to the deregulation 6 of housing accommodations upon vacancy. The situation has permitted 7 speculative and profiteering practices and has brought about the loss of 8 vital and irreplaceable affordable housing for working persons and fami- 9 lies. 10 The legislature therefore declares that in order to prevent uncertain- 11 ty, potential hardship and dislocation of tenants living in housing 12 accommodations subject to government regulations as to rentals and 13 continued occupancy as well as those not subject to such regulation, the 14 provisions of this act are necessary to protect the public health, safe- 15 ty and general welfare. The necessity in the public interest for the 16 provisions hereinafter enacted is hereby declared as a matter of legis- 17 lative determination. 18 § 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the 19 laws of 1946, constituting the emergency housing rent control law, is 20 REPEALED. 21 § 3. Paragraph 13 of subdivision a of section 5 of section 4 of chap- 22 ter 576 of the laws of 1974, constituting the emergency tenant 23 protection act of nineteen seventy-four, is REPEALED. 24 § 4. Subparagraph (k) of paragraph 2 of subdivision e of section 25 26-403 of the administrative code of the city of New York is REPEALED. 26 § 5. Section 26-504.2 of the administrative code of the city of New 27 York is REPEALED. 28 § 6. Any housing accommodations that on or after January 1, 2007 were 29 excluded from coverage from the emergency tenant protection act of nine- 30 teen seventy-four, the emergency housing rent control law or the admin- 31 istrative code of the city of New York pursuant to the provisions of law 32 repealed by sections two, three, four and five of this act shall be 33 subject to the provisions of such act, law or administrative code, 34 respectively. Notwithstanding the provisions of any lease or rental 35 agreement, the legal regulated rent or maximum collectible rent of any 36 housing accommodation excluded from regulation on or after January 1, 37 2007 by reason of the provisions repealed by sections two, three, four 38 and five of this act shall be the legal regulated rent or maximum 39 collectible rent applicable to such accommodation on December 31, 2006, 40 subject to further adjustment in accordance with applicable provisions 41 of law. 42 § 7. Any housing accommodations that prior to January 1, 2007 were 43 excluded from coverage from the emergency tenant protection act of nine- 44 teen seventy-four, the emergency housing rent control law or the admin- 45 istrative code of the city of New York pursuant to the provisions of law 46 repealed by sections two, three, four, and five of this act, and where 47 such housing accommodations were located outside the city of New York 48 and were rented to a tenant on or after January 1, 2007 for less than 49 $3,500 per month or were located within the city of New York and were 50 rented to a tenant on or after January 1, 2007 for less than $5,000.00 51 per month, shall be subject to the provisions of such act, law or admin- 52 istrative code, respectively. Notwithstanding the provisions of any 53 lease or rental agreement, the legal regulated rent or maximum collect- 54 ible rent of any housing accommodation excluded from regulation prior to 55 January 1, 2007 by reason of the provisions repealed by sections two, 56 three, four and five of this act and made subject to regulation shall beA. 2674--A 17 1 the actual rent applicable to such accommodations on January 1, 2007 or 2 the first rent applicable to such accommodation after January 1, 2007, 3 subject to further adjustment in accordance with applicable provisions 4 of law. 5 § 8. This act shall take effect immediately. 6 PART H 7 Section 1. Subdivision a-2 of section 10 of section 4 of chapter 576 8 of the laws of 1974, constituting the emergency tenant protection act of 9 nineteen seventy-four, as added by chapter 82 of the laws of 2003, is 10 amended to read as follows: 11 [a-2.] (a-2) Provides that where the amount of rent charged to and 12 paid by the tenant is less than the legal regulated rent for the housing 13 accommodation, the amount of rent for such housing accommodation which 14 may be charged [upon renewal or] upon vacancy thereof may, at the option 15 of the owner, be based upon such previously established legal regulated 16 rent, as adjusted by [the most recent] all applicable guidelines 17 increases and other increases authorized by law; provided, however, that 18 such vacancy shall not be caused by the failure of the owner or an agent 19 of the owner, to maintain the housing accommodation in compliance with 20 the warranty of habitability set forth in subdivision one of section two 21 hundred thirty-five-b of the real property law. [Where, subsequent to22vacancy, such legal regulated rent, as adjusted by the most recent23applicable guidelines increases and any other increases authorized by24law is two thousand dollars or more per month, such housing accommo-25dation shall be excluded from the provisions of this act pursuant to26paragraph thirteen of subdivision a of section five of this act.] 27 § 2. Paragraph 14 of subdivision c of section 26-511 of the adminis- 28 trative code of the city of New York, as added by chapter 82 of the laws 29 of 2003, is amended to read as follows: 30 (14) provides that where the amount of rent charged to and paid by the 31 tenant is less than the legal regulated rent for the housing accommo- 32 dation, the amount of rent for such housing accommodation which may be 33 charged [upon renewal or] upon vacancy thereof may, at the option of the 34 owner, be based upon such previously established legal regulated rent, 35 as adjusted by the most recent applicable guidelines increases and any 36 other increases authorized by law; provided, however, that such vacancy 37 shall not be caused by the failure of the owner or an agent of the 38 owner, to maintain the housing accommodation in compliance with the 39 warranty of habitability set forth in subdivision one of section two 40 hundred thirty-five-b of the real property law. [Where, subsequent to41vacancy, such legal regulated rent, as adjusted by the most recent42applicable guidelines increases and any other increases authorized by43law is two thousand dollars or more per month, such housing accommo-44dation shall be excluded from the provisions of this law pursuant to45section 26-504.2 of this chapter.] 46 § 3. This act shall take effect immediately; provided, however, that 47 the amendments to section 10 of the emergency tenant protection act of 48 nineteen seventy-four made by section one of this act shall expire on 49 the same date as such act expires and shall not affect the expiration of 50 such act as provided in section 17 of chapter 576 of the laws of 1974; 51 and provided, further, that the amendments to section 26-511 of the rent 52 stabilization law of nineteen hundred sixty-nine made by section two of 53 this act shall expire on the same date as such law expires and shall notA. 2674--A 18 1 affect the expiration of such law as provided under section 26-520 of 2 such law. 3 PART I 4 Section 1. Paragraph 6-a of subdivision c of section 26-511 of the 5 administrative code of the city of New York is amended to read as 6 follows: 7 (6-a) provides criteria whereby as an alternative to the hardship 8 application provided under paragraph six of this subdivision owners of 9 buildings acquired by the same owner or a related entity owned by the 10 same principals [three] six years prior to the date of application may 11 apply to the division for increases in excess of the level of applicable 12 guideline increases established under this law based on a finding by the 13 commissioner that such guideline increases are not sufficient to enable 14 the owner to maintain an annual gross rent income for such building 15 which exceeds the annual operating expenses of such building by a sum 16 equal to at least five percent of such gross rent. For the purposes of 17 this paragraph, operating expenses shall consist of the actual, reason- 18 able, costs of fuel, labor, utilities, taxes, other than income or 19 corporate franchise taxes, fees, permits, necessary contracted services 20 and non-capital repairs, insurance, parts and supplies, management fees 21 and other administrative costs and mortgage interest. For the purposes 22 of this paragraph, mortgage interest shall be deemed to mean interest on 23 a bona fide mortgage including an allocable portion of charges related 24 thereto. Criteria to be considered in determining a bona fide mortgage 25 other than an institutional mortgage shall include; condition of the 26 property, location of the property, the existing mortgage market at the 27 time the mortgage is placed, the term of the mortgage, the amortization 28 rate, the principal amount of the mortgage, security and other terms and 29 conditions of the mortgage. The commissioner shall set a rental value 30 for any unit occupied by the owner or a person related to the owner or 31 unoccupied at the owner's choice for more than one month at the last 32 regulated rent plus the minimum number of guidelines increases or, if no 33 such regulated rent existed or is known, the commissioner shall impute a 34 rent consistent with other rents in the building. The amount of hardship 35 increase shall be such as may be required to maintain the annual gross 36 rent income as provided by this paragraph. The division shall not grant 37 a hardship application under this paragraph or paragraph six of this 38 subdivision for a period of three years subsequent to granting a hard- 39 ship application under the provisions of this paragraph. The collection 40 of any increase in the rent for any housing accommodation pursuant to 41 this paragraph shall not exceed six percent in any year from the effec- 42 tive date of the order granting the increase over the rent set forth in 43 the schedule of gross rents, with collectability of any dollar excess 44 above said sum to be spread forward in similar increments and added to 45 the rent as established or set in future years. No application shall be 46 approved unless the owner's equity in such building exceeds five percent 47 of: (i) the arms length purchase price of the property; (ii) the cost of 48 any capital improvements for which the owner has not collected a 49 surcharge; (iii) any repayment of principal of any mortgage or loan used 50 to finance the purchase of the property or any capital improvements for 51 which the owner has not collected a surcharge and (iv) any increase in 52 the equalized assessed value of the property which occurred subsequent 53 to the first valuation of the property after purchase by the owner. For 54 the purposes of this paragraph, owner's equity shall mean the sum of (i)A. 2674--A 19 1 the purchase price of the property less the principal of any mortgage or 2 loan used to finance the purchase of the property, (ii) the cost of any 3 capital improvement for which the owner has not collected a surcharge 4 less the principal of any mortgage or loan used to finance said improve- 5 ment, (iii) any repayment of the principal of any mortgage or loan used 6 to finance the purchase of the property or any capital improvement for 7 which the owner has not collected a surcharge, and (iv) any increase in 8 the equalized assessed value of the property which occurred subsequent 9 to the first valuation of the property after purchase by the owner. 10 § 2. Paragraph 5 of subdivision d of section 6 of section 4 of chapter 11 576 of the laws of 1974 enacting the emergency tenant protection act of 12 nineteen seventy-four, as amended by chapter 102 of the laws of 1984, is 13 amended to read as follows: 14 (5) as an alternative to the hardship application provided under para- 15 graph four of this subdivision, owners of buildings acquired by the same 16 owner or a related entity owned by the same principals [three] six years 17 prior to the date of application may apply to the division for increases 18 in excess of the level of applicable guideline increases established 19 under this law based on a finding by the commissioner that such guide- 20 line increases are not sufficient to enable the owner to maintain an 21 annual gross rent income for such building which exceeds the annual 22 operating expenses of such building by a sum equal to at least five 23 percent of such gross rent. For the purposes of this paragraph, operat- 24 ing expenses shall consist of the actual, reasonable, costs of fuel, 25 labor, utilities, taxes, other than income or corporate franchise taxes, 26 fees, permits, necessary contracted services and non-capital repairs, 27 insurance, parts and supplies, management fees and other administrative 28 costs and mortgage interest. For the purposes of this paragraph, mort- 29 gage interest shall be deemed to mean interest on a bona fide mortgage 30 including an allocable portion of charges related thereto. Criteria to 31 be considered in determining a bona fide mortgage other than an institu- 32 tional mortgage shall include; condition of the property, location of 33 the property, the existing mortgage market at the time the mortgage is 34 placed, the term of the mortgage, the amortization rate, the principal 35 amount of the mortgage, security and other terms and conditions of the 36 mortgage. The commissioner shall set a rental value for any unit occu- 37 pied by the owner or a person related to the owner or unoccupied at the 38 owner's choice for more than one month at the last regulated rent plus 39 the minimum number of guidelines increases or, if no such regulated rent 40 existed or is known, the commissioner shall impute a rent consistent 41 with other rents in the building. The amount of hardship increase shall 42 be such as may be required to maintain the annual gross rent income as 43 provided by this paragraph. The division shall not grant a hardship 44 application under this paragraph or paragraph four of this subdivision 45 for a period of three years subsequent to granting a hardship applica- 46 tion under the provisions of this paragraph. The collection of any 47 increase in the rent for any housing accommodation pursuant to this 48 paragraph shall not exceed six percent in any year from the effective 49 date of the order granting the increase over the rent set forth in the 50 schedule of gross rents, with collectability of any dollar excess above 51 said sum to be spread forward in similar increments and added to the 52 rent as established or set in future years. No application shall be 53 approved unless the owner's equity in such building exceeds five percent 54 of: (i) the arms length purchase price of the property; (ii) the cost of 55 any capital improvements for which the owner has not collected a 56 surcharge; (iii) any repayment of principal of any mortgage or loan usedA. 2674--A 20 1 to finance the purchase of the property or any capital improvements for 2 which the owner has not collected a surcharge; and (iv) any increase in 3 the equalized assessed value of the property which occurred subsequent 4 to the first valuation of the property after purchase by the owner. For 5 the purposes of this paragraph, owner's equity shall mean the sum of (i) 6 the purchase price of the property less the principal of any mortgage or 7 loan used to finance the purchase of the property, (ii) the cost of any 8 capital improvement for which the owner has not collected a surcharge 9 less the principal of any mortgage or loan used to finance said improve- 10 ment, (iii) any repayment of the principal of any mortgage or loan used 11 to finance the purchase of the property or any capital improvement for 12 which the owner has not collected a surcharge, and (iv) any increase in 13 the equalized assessed value of the property which occurred subsequent 14 to the first valuation of the property after purchase by the owner. 15 § 3. This act shall take effect immediately; provided that the amend- 16 ments to section 26-511 of chapter 4 of title 26 of the administrative 17 code of the city of New York made by section one of this act shall 18 expire on the same date as such law expires and shall not affect the 19 expiration of such law as provided under section 26-520 of such law; and 20 provided that the amendments to section 6 of the emergency tenant 21 protection act of nineteen seventy-four made by section two of this act 22 shall expire on the same date as such act expires and shall not affect 23 the expiration of such act as provided in section 17 of chapter 576 of 24 the laws of 1974. 25 PART J 26 Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section 27 26-405 of the administrative code of the city of New York, as amended by 28 chapter 749 of the laws of 1990, is amended to read as follows: 29 (g) (i) Collection of surcharges to the maximum rent authorized pursu- 30 ant to item (ii) of this subparagraph shall cease when the owner has 31 recovered the cost of the major capital improvement; 32 (ii) There has been since July first, nineteen hundred seventy, a 33 major capital improvement [required for the operation, preservation or34maintenance of the structure. An adjustment under this subparagraph (g)35shall be in an amount sufficient to amortize the cost of the improve-36ments pursuant to this subparagraph (g) over a seven-year period]; 37 provided that the commissioner finds that such improvements are deemed 38 depreciable under the internal revenue code and such improvements are 39 required for the operation, preservation or maintenance of the struc- 40 ture. The increase permitted for such capital improvement shall be 41 collected as a monthly surcharge to the maximum rent. It shall be sepa- 42 rately designated and billed as such and shall not be compounded by any 43 other adjustment to the maximum rent. The surcharge allocable to each 44 apartment shall be an amount equal to the cost of the improvement 45 divided by eighty-four, divided by the number of rooms in the building, 46 and then multiplied by the number of rooms in such apartment; provided 47 that the surcharge allocable to any apartment in any one year may not 48 exceed an amount equal to six percent of the monthly rent collected by 49 the owner for such apartment as set forth in the schedule of gross 50 rents. Any excess above said six percent shall be carried forward and 51 collected in future years as a further surcharge not to exceed an addi- 52 tional six percent in any one year period until the total surcharge 53 equals the amount it would have been if the aforementioned six percent 54 limitation did not apply; orA. 2674--A 21 1 § 2. Subparagraph (k) of paragraph 1 of subdivision g of section 2 26-405 of the administrative code of the city of New York, as amended by 3 chapter 749 of the laws of 1990, is amended to read as follows: 4 (k) The landlord has incurred, since January first, nineteen hundred 5 seventy, in connection with and in addition to a concurrent major capi- 6 tal improvement pursuant to subparagraph (g) of this paragraph, other 7 expenditures to improve, restore or preserve the quality of the struc- 8 ture. An adjustment under this subparagraph shall be granted only if 9 such improvements represent an expenditure equal to at least ten per 10 centum of the total operating and maintenance expenses for the preceding 11 year. An adjustment under this subparagraph shall be in addition to any 12 adjustment granted for the concurrent major capital improvement and 13 shall be [in an amount sufficient to amortize the cost of the improve-14ments pursuant to this subparagraph over a seven-year period] imple- 15 mented in the same manner as such major capital improvement as a further 16 surcharge to the maximum rent. 17 § 3. Paragraph 6 of subdivision c of section 26-511 of the administra- 18 tive code of the city of New York, as amended by chapter 116 of the laws 19 of 1997, is amended to read as follows: 20 (6) provides criteria whereby the commissioner may act upon applica- 21 tions by owners for increases in excess of the level of fair rent 22 increase established under this law provided, however, that such crite- 23 ria shall provide [(a)] as to hardship applications, for a finding that 24 the level of fair rent increase is not sufficient to enable the owner to 25 maintain approximately the same average annual net income (which shall 26 be computed without regard to debt service, financing costs or manage- 27 ment fees) for the three year period ending on or within six months of 28 the date of an application pursuant to such criteria as compared with 29 annual net income, which prevailed on the average over the period nine- 30 teen hundred sixty-eight through nineteen hundred seventy, or for the 31 first three years of operation if the building was completed since nine- 32 teen hundred sixty-eight or for the first three fiscal years after a 33 transfer of title to a new owner provided the new owner can establish to 34 the satisfaction of the commissioner that he or she acquired title to 35 the building as a result of a bona fide sale of the entire building and 36 that the new owner is unable to obtain requisite records for the fiscal 37 years nineteen hundred sixty-eight through nineteen hundred seventy 38 despite diligent efforts to obtain same from predecessors in title and 39 further provided that the new owner can provide financial data covering 40 a minimum of six years under his or her continuous and uninterrupted 41 operation of the building to meet the three year to three year compar- 42 ative test periods herein provided[; and (b) as to completed building-43wide major capital improvements, for a finding that such improvements44are deemed depreciable under the Internal Revenue Code and that the cost45is to be amortized over a seven-year period, based upon cash purchase46price exclusive of interest or service charges]. Notwithstanding 47 anything to the contrary contained herein, no hardship increase granted 48 pursuant to this paragraph shall, when added to the annual gross rents, 49 as determined by the commissioner, exceed the sum of, (i) the annual 50 operating expenses, (ii) an allowance for management services as deter- 51 mined by the commissioner, (iii) actual annual mortgage debt service 52 (interest and amortization) on its indebtedness to a lending institu- 53 tion, an insurance company, a retirement fund or welfare fund which is 54 operated under the supervision of the banking or insurance laws of the 55 state of New York or the United States, and (iv) eight and one-half 56 percent of that portion of the fair market value of the property whichA. 2674--A 22 1 exceeds the unpaid principal amount of the mortgage indebtedness 2 referred to in subparagraph (iii) of this paragraph. Fair market value 3 for the purposes of this paragraph shall be six times the annual gross 4 rent. The collection of any increase in the stabilized rent for any 5 apartment pursuant to this paragraph shall not exceed six percent in any 6 year from the effective date of the order granting the increase over the 7 rent set forth in the schedule of gross rents, with collectability of 8 any dollar excess above said sum to be spread forward in similar incre- 9 ments and added to the stabilized rent as established or set in future 10 years; 11 § 4. Subdivision c of section 26-511 of the administrative code of the 12 city of New York is amended by adding two new paragraphs 6-b and 6-c to 13 read as follows: 14 (6-b) provides criteria whereby the commissioner may act upon applica- 15 tion by owners for increases in excess of the level of fair rent 16 increase established under this law provided, however, that such crite- 17 ria shall provide as to completed building-wide major capital improve- 18 ments, for a finding that such improvements are deemed depreciable under 19 the internal revenue code and such improvements are required for the 20 operation, preservation or maintenance of the structure. The increase 21 permitted for such capital improvement shall be collected as a monthly 22 surcharge to the legal regulated rent. It shall be separately designated 23 and billed as such and shall not be compounded by any annual adjustment 24 of the level of fair rent provided for under subdivision b of section 25 26-510 of this law. The surcharge allocable to each apartment shall be 26 an amount equal to the cost of the improvement divided by eighty-four, 27 divided by the number of rooms in the building, and then multiplied by 28 the number of rooms in such apartment; provided that the surcharge allo- 29 cable to any apartment, in any one year may not exceed an amount equal 30 to six percent of the monthly rent collected by the owner for such 31 apartment as set forth in the schedule of gross rents. Any excess above 32 said six percent shall be carried forward and collected in future years 33 as a further surcharge not to exceed an additional six percent in any 34 one year period until the total surcharge equals the amount it would 35 have been if the aforementioned six percent limitation did not apply. 36 (6-c) collection of surcharges in excess of the level of fair rent 37 authorized pursuant to paragraph six-b of this subdivision shall cease 38 when the owner has recovered the cost of the major capital improvement. 39 § 5. Paragraph 3 of subdivision d of section 6 of section 4 of chapter 40 576 of the laws of 1974, constituting the emergency tenant protection 41 act of nineteen seventy-four, as amended by chapter 749 of the laws of 42 1990, is amended to read as follows: 43 (3) (i) collection of surcharges in addition to the legal regulated 44 rent authorized pursuant to subparagraph (ii) of this paragraph shall 45 cease when the owner has recovered the cost of the major capital 46 improvement; 47 (ii) there has been since January first, nineteen hundred seventy-four 48 a major capital improvement [required for the operation, preservation or49maintenance of the structure. An adjustment under this paragraph shall50be in an amount sufficient to amortize the cost of the improvements51pursuant to this paragraph over a seven-year period]; provided that the 52 commissioner finds that such improvements are deemed depreciable under 53 the internal revenue code and such improvements are required for the 54 operation, preservation or maintenance of the structure. The increase 55 permitted for such capital improvement shall be collected as a monthly 56 surcharge to the legal regulated rent. It shall be separately designatedA. 2674--A 23 1 and billed as such and shall not be compounded by any annual rent 2 adjustment authorized by the rent guidelines board under this act. The 3 surcharge allocable to each apartment shall be an amount equal to the 4 cost of the improvement divided by eighty-four, divided by the number of 5 rooms in the building, and then multiplied by the number of rooms in 6 such apartment; provided that the surcharge allocable to any apartment 7 in any one year may not exceed an amount equal to six percent of the 8 monthly rent collected by the owner for such apartment as set forth in 9 the schedule of gross rents. Any excess above said six percent shall be 10 carried forward and collected in future years as a further surcharge not 11 to exceed an additional six percent in any one year period until the 12 total surcharge equals the amount it would have been if the aforemen- 13 tioned six percent limitation did not apply, or 14 § 6. The second undesignated paragraph of paragraph (a) of subdivision 15 4 of section 4 of chapter 274 of the laws of 1946, constituting the 16 emergency housing rent control law, as amended by chapter 21 of the laws 17 of 1962, clause 5 as amended by chapter 253 of the laws of 1993, is 18 amended to read as follows: 19 No application for adjustment of maximum rent based upon a sales price 20 valuation shall be filed by the landlord under this subparagraph prior 21 to six months from the date of such sale of the property. In addition, 22 no adjustment ordered by the commission based upon such sales price 23 valuation shall be effective prior to one year from the date of such 24 sale. Where, however, the assessed valuation of the land exceeds four 25 times the assessed valuation of the buildings thereon, the commission 26 may determine a valuation of the property equal to five times the equal- 27 ized assessed valuation of the buildings, for the purposes of this 28 subparagraph. The commission may make a determination that the valu- 29 ation of the property is an amount different from such equalized 30 assessed valuation where there is a request for a reduction in such 31 assessed valuation currently pending; or where there has been a 32 reduction in the assessed valuation for the year next preceding the 33 effective date of the current assessed valuation in effect at the time 34 of the filing of the application. Net annual return shall be the amount 35 by which the earned income exceeds the operating expenses of the proper- 36 ty, excluding mortgage interest and amortization, and excluding allow- 37 ances for obsolescence and reserves, but including an allowance for 38 depreciation of two per centum of the value of the buildings exclusive 39 of the land, or the amount shown for depreciation of the buildings in 40 the latest required federal income tax return, whichever is lower; 41 provided, however, that (1) no allowance for depreciation of the build- 42 ings shall be included where the buildings have been fully depreciated 43 for federal income tax purposes or on the books of the owner; or (2) the 44 landlord who owns no more than four rental units within the state has 45 not been fully compensated by increases in rental income sufficient to 46 offset unavoidable increases in property taxes, fuel, utilities, insur- 47 ance and repairs and maintenance, excluding mortgage interest and amor- 48 tization, and excluding allowances for depreciation, obsolescence and 49 reserves, which have occurred since the federal date determining the 50 maximum rent or the date the property was acquired by the present owner, 51 whichever is later; or (3) the landlord operates a hotel or rooming 52 house or owns a cooperative apartment and has not been fully compensated 53 by increases in rental income from the controlled housing accommodations 54 sufficient to offset unavoidable increases in property taxes and other 55 costs as are allocable to such controlled housing accommodations, 56 including costs of operation of such hotel or rooming house, but exclud-A. 2674--A 24 1 ing mortgage interest and amortization, and excluding allowances for 2 depreciation, obsolescence and reserves, which have occurred since the 3 federal date determining the maximum rent or the date the landlord 4 commenced the operation of the property, whichever is later; or (4) the 5 landlord and tenant voluntarily enter into a valid written lease in good 6 faith with respect to any housing accommodation, which lease provides 7 for an increase in the maximum rent not in excess of fifteen per centum 8 and for a term of not less than two years, except that where such lease 9 provides for an increase in excess of fifteen per centum, the increase 10 shall be automatically reduced to fifteen per centum; or (5) the land- 11 lord and tenant by mutual voluntary written agreement agree to a 12 substantial increase or decrease in dwelling space or a change in the 13 services, furniture, furnishings or equipment provided in the housing 14 accommodations; provided that an owner shall be entitled to a rent 15 increase where there has been a substantial modification or increase of 16 dwelling space or an increase in the services, or installation of new 17 equipment or improvements or new furniture or furnishings provided in or 18 to a tenant's housing accommodation. The permanent increase in the maxi- 19 mum rent for the affected housing accommodation shall be one-fortieth of 20 the total cost incurred by the landlord in providing such modification 21 or increase in dwelling space, services, furniture, furnishings or 22 equipment, including the cost of installation, but excluding finance 23 charges provided further that an owner who is entitled to a rent 24 increase pursuant to this clause shall not be entitled to a further rent 25 increase based upon the installation of similar equipment, or new furni- 26 ture or furnishings within the useful life of such new equipment, or new 27 furniture or furnishings. The owner shall give written notice to the 28 commission of any such adjustment pursuant to this clause; or (6) there 29 has been, since March first, nineteen hundred fifty, an increase in the 30 rental value of the housing accommodations as a result of a substantial 31 rehabilitation of the building or housing accommodation therein which 32 materially adds to the value of the property or appreciably prolongs its 33 life, excluding ordinary repairs, maintenance and replacements; or (7) 34 (i) collection of surcharges to the maximum rent authorized pursuant to 35 item (ii) of this clause shall cease when the owner has recovered the 36 cost of the major capital improvement; (ii) there has been since March 37 first, nineteen hundred fifty, a major capital improvement [required for38the operation, preservation or maintenance of the structure]; provided 39 that the commissioner finds that such improvements are deemed deprecia- 40 ble under the internal revenue code and such improvements are required 41 for the operation, preservation or maintenance of the structure. The 42 increase permitted for such capital improvement shall be collected as a 43 monthly surcharge to the maximum rent. It shall be separately designated 44 and billed as such and shall not be compounded by any other adjustment 45 to the maximum rent. The surcharge allocable to each apartment shall be 46 an amount equal to the cost of the improvement divided by eighty-four, 47 divided by the number of rooms in the building, and then multiplied by 48 the number of rooms in such apartment; provided that the surcharge allo- 49 cable to any apartment in any one year may not exceed an amount equal to 50 six percent of the monthly rent collected by the owner for such apart- 51 ment as set forth in the schedule of gross rents. Any excess above said 52 six percent shall be carried forward and collected in future years as a 53 further surcharge not to exceed an additional six percent in any one 54 year period until the total surcharge equals the amount it would have 55 been if the aforementioned six percent limitation did not apply; or (8) 56 there has been since March first, nineteen hundred fifty, in structuresA. 2674--A 25 1 containing more than four housing accommodations, other improvements 2 made with the express consent of the tenants in occupancy of at least 3 seventy-five per centum of the housing accommodations, provided, howev- 4 er, that no adjustment granted hereunder shall exceed fifteen per centum 5 unless the tenants have agreed to a higher percentage of increase, as 6 herein provided; or (9) there has been, since March first, nineteen 7 hundred fifty, a subletting without written consent from the landlord or 8 an increase in the number of adult occupants who are not members of the 9 immediate family of the tenant, and the landlord has not been compen- 10 sated therefor by adjustment of the maximum rent by lease or order of 11 the commission or pursuant to the federal act; or (10) the presence of 12 unique or peculiar circumstances materially affecting the maximum rent 13 has resulted in a maximum rent which is substantially lower than the 14 rents generally prevailing in the same area for substantially similar 15 housing accommodations. 16 § 7. This act shall take effect immediately; provided that the amend- 17 ments to section 26-405 of the city rent and rehabilitation law made by 18 sections one and two of this act shall remain in full force and effect 19 only so long as the public emergency requiring the regulation and 20 control of residential rents and evictions continues, as provided in 21 subdivision 3 of section 1 of the local emergency housing rent control 22 act; and provided further that the amendments to section 26-511 of the 23 rent stabilization law of nineteen hundred sixty-nine made by sections 24 three and four of this act shall expire on the same date as such law 25 expires and shall not affect the expiration of such law as provided 26 under section 26-520 of such law, as from time to time amended; and 27 provided further that the amendment to section 6 of the emergency tenant 28 protection act of nineteen seventy-four made by section five of this act 29 shall expire on the same date as such act expires and shall not affect 30 the expiration of such act as provided in section 17 of chapter 576 of 31 the laws of 1974, as from time to time amended; and further provided 32 that the amendment to section 4 of the emergency housing rent control 33 law made by section six of this act shall expire on the same date as 34 such law expires and shall not affect the expiration of such law as 35 provided in subdivision 2 of section 1 of chapter 274 of the laws of 36 1946. 37 PART K 38 Section 1. Section 5 of section 4 of chapter 576 of the laws of 1974, 39 constituting the emergency tenant protection act of nineteen seventy- 40 four, is amended by adding a new subdivision d to read as follows: 41 d. Notwithstanding the provisions of paragraph three or five of subdi- 42 vision a of this section but subject to any other applicable exceptions 43 in such subdivision, nothing shall prevent the declaration of an emer- 44 gency pursuant to section three of this act for rental housing accommo- 45 dations located in buildings which were owned by a company established 46 under article 2 of the private housing finance law, other than a mutual 47 company, by reason of a voluntary dissolution pursuant to section 35 of 48 such law. The provision of subdivision a of section nine of this act 49 shall not apply to any housing accommodation which became subject to 50 this act pursuant to this subdivision. 51 § 2. This act shall take effect immediately and shall apply to housing 52 companies that dissolve before, on or after such date; provided, howev- 53 er, that the amendments to the emergency tenant protection act of nine- 54 teen seventy-four made by this act shall not affect the expiration ofA. 2674--A 26 1 such act as provided in section 17 of chapter 576 of the laws of 1974, 2 as amended and shall be deemed to expire therewith. 3 PART L 4 Section 1. Paragraph 12 of subdivision a of section 5 of section 4 of 5 chapter 576 of the laws of 1974, constituting the emergency tenant 6 protection act of nineteen seventy-four, as amended by chapter 116 of 7 the laws of 1997, is amended to read as follows: 8 (12) upon issuance of an order by the division, housing accommodations 9 which are: (1) occupied by persons who have a total annual income [in10excess of one hundred seventy-five thousand dollars per annum], as 11 defined in and subject to the limitations and process set forth in 12 section five-a of this act, that exceeds the deregulation income thresh- 13 old, as defined in section five-a of this act in each of the two preced- 14 ing calendar years[, as defined in and subject to the limitations and15process set forth in section five-a of this act]; and (2) have a legal 16 regulated rent [of two thousand dollars or more per month] that equals 17 or exceeds the deregulation rent threshold, as defined in section five-a 18 of this act. Provided however, that this exclusion shall not apply to 19 housing accommodations which became or become subject to this act (a) by 20 virtue of receiving tax benefits pursuant to section four hundred twen- 21 ty-one-a or four hundred eighty-nine of the real property tax law, 22 except as otherwise provided in subparagraph (i) of paragraph (f) of 23 subdivision two of section four hundred twenty-one-a of the real proper- 24 ty tax law, or (b) by virtue of article seven-C of the multiple dwelling 25 law. 26 § 2. Section 5-a of section 4 of chapter 576 of the laws of 1974, 27 constituting the emergency tenant protection act of nineteen seventy- 28 four, as added by chapter 253 of the laws of 1993, subdivision (b) and 29 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as 30 added by chapter 116 of the laws of 1997, is amended to read as follows: 31 § 5-a. High income rent [decontrol] deregulation. (a) 1. For purposes 32 of this section, annual income shall mean the federal adjusted gross 33 income as reported on the New York state income tax return. Total annual 34 income means the sum of the annual incomes of all persons whose names 35 are recited as the tenant or co-tenant on a lease who occupy the housing 36 accommodation and all other persons that occupy the housing accommo- 37 dation as their primary residence on other than a temporary basis, 38 excluding bona fide employees of such occupants residing therein in 39 connection with such employment and excluding bona fide subtenants in 40 occupancy pursuant to the provisions of section two hundred twenty-six-b 41 of the real property law. In the case where a housing accommodation is 42 sublet, the annual income of the tenant or co-tenant recited on the 43 lease who will reoccupy the housing accommodation upon the expiration of 44 the sublease shall be considered. 45 2. Deregulation income threshold means three hundred thousand dollars. 46 For proceedings commenced on or after January first, two thousand 47 twelve, the deregulation income threshold shall be adjusted annually on 48 the first day of October of each year for proceedings in each subsequent 49 year by the change in the regional consumer price index for all urban 50 consumers, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as 51 established the preceding August. 52 3. Deregulation rent threshold means three thousand dollars. For 53 proceedings commenced on or after January first, two thousand twelve, 54 the deregulation rent threshold shall be adjusted annually on the firstA. 2674--A 27 1 day of October each year for proceedings in each subsequent year by the 2 change in the regional consumer price index for all urban consumers, New 3 York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as established the 4 preceding August. 5 (b) On or before the first day of May in each calendar year, the owner 6 of each housing accommodation for which the legal regulated monthly rent 7 [is two thousand dollars or more per month] equals or exceeds the dereg- 8 ulation rent threshold may provide the tenant or tenants residing there- 9 in with an income certification form prepared by the division of housing 10 and community renewal on which such tenant or tenants shall identify all 11 persons referred to in subdivision (a) of this section and shall certify 12 whether the total annual income is in excess of [one hundred seventy-13five thousand dollars] the deregulation income threshold in each of the 14 two preceding calendar years. Such income certification form shall state 15 that the income level certified to by the tenant may be subject to 16 verification by the department of taxation and finance pursuant to 17 section one hundred seventy-one-b of the tax law, and shall not require 18 disclosure of any information other than whether the aforementioned 19 threshold has been exceeded. Such income certification form shall clear- 20 ly state that: (i) only tenants residing in housing accommodations which 21 had a legal regulated monthly rent [of two thousand dollars or more per22month] that equals or exceeds the deregulation rent threshold are 23 required to complete the certification form; (ii) that tenants have 24 protections available to them which are designed to prevent harassment; 25 (iii) that tenants are not required to provide any information regarding 26 their income except that which is requested on the form and may contain 27 such other information the division deems appropriate. The tenant or 28 tenants shall return the completed certification to the owner within 29 thirty days after service upon the tenant or tenants. In the event that 30 the total annual income as certified is in excess of [one hundred seven-31ty-five thousand dollars] the deregulation income threshold in each such 32 year, the owner may file the certification with the state division of 33 housing and community renewal on or before June thirtieth of such year. 34 Upon filing such certification with the division, the division shall, 35 within thirty days after the filing, issue an order providing that such 36 housing accommodation shall not be subject to the provisions of this act 37 upon the expiration of the existing lease. A copy of such order shall be 38 mailed by regular and certified mail, return receipt requested, to the 39 tenant or tenants and a copy thereof shall be mailed to the owner. 40 (c) 1. In the event that the tenant or tenants either fail to return 41 the completed certification to the owner on or before the date required 42 by subdivision (b) of this section or the owner disputes the certif- 43 ication returned by the tenant or tenants, the owner may, on or before 44 June thirtieth of such year, petition the state division of housing and 45 community renewal to verify, pursuant to section one hundred seventy- 46 one-b of the tax law, whether the total annual income exceeds [one47hundred seventy-five thousand dollars] the deregulation income threshold 48 in each of the two preceding calendar years. Within twenty days after 49 the filing of such request with the division, the division shall notify 50 the tenant or tenants that such tenant or tenants named on the lease 51 must provide the division with such information as the division and the 52 department of taxation and finance shall require to verify whether the 53 total annual income exceeds [one hundred seventy-five thousand dollars] 54 the deregulation income threshold in each such year. The division's 55 notification shall require the tenant or tenants to provide the informa- 56 tion to the division within sixty days of service upon such tenant orA. 2674--A 28 1 tenants and shall include a warning in bold faced type that failure to 2 respond will result in an order being issued by the division providing 3 that such housing accommodations shall not be subject to the provisions 4 of this act. 5 2. If the department of taxation and finance determines that the total 6 annual income is in excess of [one hundred seventy-five thousand7dollars] the deregulation income threshold in each of the two preceding 8 calendar years, the division shall, on or before November fifteenth of 9 such year, notify the owner and tenants of the results of such verifica- 10 tion. Both the owner and the tenants shall have thirty days within which 11 to comment on such verification results. Within forty-five days after 12 the expiration of the comment period, the division shall, where appro- 13 priate, issue an order providing that such housing accommodation shall 14 not be subject to the provisions of this act upon expiration of the 15 existing lease. A copy of such order shall be mailed by regular and 16 certified mail, return receipt requested, to the tenant or tenants and a 17 copy thereof shall be sent to the owner. 18 3. In the event the tenant or tenants fail to provide the information 19 required pursuant to paragraph one of this subdivision, the division 20 shall issue, on or before December first of such year, an order provid- 21 ing that such housing accommodation shall not be subject to the 22 provisions of this act upon the expiration [or] of the current lease. A 23 copy of such order shall be mailed by regular and certified mail, return 24 receipt requested, to the tenant or tenants and a copy thereof shall be 25 sent to the owner. 26 4. The provisions of the state freedom of information act shall not 27 apply to any income information obtained by the division pursuant to 28 this section. 29 (d) This section shall apply only to paragraph twelve of subdivision a 30 of section five of this act. 31 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 32 this section, an owner shall offer the housing accommodation subject to 33 such order to the tenant at a rent not in excess of the market rent, 34 which for the purposes of this section means a rent obtainable in an 35 arm's length transaction. Such rental offer shall be made by the owner 36 in writing to the tenant by certified and regular mail and shall inform 37 the tenant that such offer must be accepted in writing within ten days 38 of receipt. The tenant shall respond within ten days after receipt of 39 such offer. If the tenant declines the offer or fails to respond within 40 such period, the owner may commence an action or proceeding for the 41 eviction of such tenant. 42 § 3. Paragraph (m) of subdivision 2 of section 2 of chapter 274 of the 43 laws of 1946, constituting the emergency housing rent control law, as 44 amended by chapter 116 of the laws of 1997, is amended to read as 45 follows: 46 (m) upon the issuance of an order of [decontrol] deregulation by the 47 division, housing accommodations which: (1) are occupied by persons who 48 have a total annual income, as defined in and subject to the limitations 49 and process set forth in section two-a of this law, in excess of [one50hundred seventy-five thousand dollars] the deregulation income threshold 51 as defined in section two-a of this law in each of the two preceding 52 calendar years[, as defined in and subject to the limitations and proc-53ess set forth in section two-a of this law]; and (2) have a maximum rent 54 [of two thousand dollars or more per month]. 55 § 4. Section 2-a of chapter 274 of the laws of 1946, constituting the 56 emergency housing rent control law, as added by chapter 253 of the lawsA. 2674--A 29 1 of 1993, subdivision (b) and paragraphs 1 and 2 of subdivision (c) as 2 amended and subdivision (e) as added by chapter 116 of the laws of 1997, 3 is amended to read as follows: 4 § 2-a. (a) 1. For purposes of this section, annual income shall mean 5 the federal adjusted gross income as reported on the New York state 6 income tax return. Total annual income means the sum of the annual 7 incomes of all persons who occupy the housing accommodation as their 8 primary residence on other than a temporary basis, excluding bona fide 9 employees of such occupants residing therein in connection with such 10 employment and excluding bona fide subtenants in occupancy pursuant to 11 the provisions of section two hundred twenty-six-b of the real property 12 law. In the case where a housing accommodation is sublet, the annual 13 income of the sublessor shall be considered. 14 2. Deregulation income threshold means three hundred thousand dollars. 15 For proceedings commenced on or after January first, two thousand 16 twelve, the deregulation income threshold shall be adjusted annually on 17 the first day of October of each year for proceedings in each subsequent 18 year by the change in the regional consumer price index for all urban 19 consumers, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as 20 established the preceding August. 21 3. Deregulation rent threshold means three thousand dollars. For 22 proceedings commenced on or after January first, two thousand twelve, 23 the deregulation rent threshold shall be adjusted annually on the first 24 day of October of each year for proceedings in each subsequent year by 25 the change in the regional consumer price index for all urban consumers, 26 New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as established 27 the preceding August. 28 (b) On or before the first day of May in each calendar year, the owner 29 of each housing accommodation for which the maximum monthly rent [is two30thousand dollars or more per month] equals or exceeds the deregulation 31 rent threshold may provide the tenant or tenants residing therein with 32 an income certification form prepared by the division of housing and 33 community renewal on which such tenant or tenants shall identify all 34 persons referred to in subdivision (a) of this section and shall certify 35 whether the total annual income is in excess of [one hundred seventy-36five thousand dollars] the deregulation income threshold in each of the 37 two preceding calendar years. Such income certification form shall state 38 that the income level certified to by the tenant may be subject to 39 verification by the department of taxation and finance pursuant to 40 section one hundred seventy-one-b of the tax law and shall not require 41 disclosure of any income information other than whether the aforemen- 42 tioned threshold has been exceeded. Such income certification form shall 43 clearly state that: (i) only tenants residing in housing accommodations 44 which had a maximum monthly rent equal to or in excess of [two thousand45dollars or more per month] the deregulation rent threshold are required 46 to complete the certification form; (ii) that tenants have protections 47 available to them which are designed to prevent harassment; (iii) that 48 tenants are not required to provide any information regarding their 49 income except that which is requested on the form and may contain such 50 other information the division deems appropriate. The tenant or tenants 51 shall return the completed certification to the owner within thirty days 52 after service upon the tenant or tenants. In the event that the total 53 annual income as certified is in excess of [one hundred seventy-five54thousand dollars in each such year] the deregulation income threshold, 55 the owner may file the certification with the state division of housing 56 and community renewal on or before June thirtieth of such year. UponA. 2674--A 30 1 filing such certification with the division, the division shall, within 2 thirty days after the filing, issue an order of [decontrol] deregulation 3 providing that such housing accommodations shall not be subject to the 4 provisions of this law as of the first day of June in the year next 5 succeeding the filing of the certification by the owner. A copy of such 6 order shall be mailed by regular and certified mail, return receipt 7 requested, to the tenant or tenants and a copy thereof shall be mailed 8 to the owner. 9 (c) 1. In the event that the tenant or tenants either fail to return 10 the completed certification to the owner on or before the date required 11 by subdivision (b) of this section or the owner disputes the certif- 12 ication returned by the tenant or tenants, the owner may, on or before 13 June thirtieth of such year, petition the state division of housing and 14 community renewal to verify, pursuant to section one hundred seventy- 15 one-b of the tax law, whether the total annual income exceeds [one16hundred seventy-five thousand dollars] the deregulation income threshold 17 in each of the two preceding calendar years. Within twenty days after 18 the filing of such request with the division, the division shall notify 19 the tenant or tenants that such tenant or tenants must provide the divi- 20 sion with such information as the division and the department of taxa- 21 tion and finance shall require to verify whether the total annual income 22 exceeds [one hundred seventy-five thousand dollars] the deregulation 23 income threshold in each such year. The division's notification shall 24 require the tenant or tenants to provide the information to the division 25 within sixty days of service upon such tenant or tenants and shall 26 include a warning in bold faced type that failure to respond will result 27 in an order of [decontrol] deregulation being issued by the division for 28 such housing accommodation. 29 2. If the department of taxation and finance determines that the total 30 annual income is in excess of [one hundred seventy-five thousand31dollars] the deregulation income threshold in each of the two preceding 32 calendar years, the division shall, on or before November fifteenth of 33 such year, notify the owner and tenants of the results of such verifica- 34 tion. Both the owner and the tenants shall have thirty days within which 35 to comment on such verification results. Within forty-five days after 36 the expiration of the comment period, the division shall, where appro- 37 priate, issue an order of [decontrol] deregulation providing that such 38 housing accommodation shall not be subject to the provisions of this law 39 as of the first day of March in the year next succeeding the filing of 40 the owner's petition with the division. A copy of such order shall be 41 mailed by regular and certified mail, return receipt requested, to the 42 tenant or tenants and a copy thereof shall be sent to the owner. 43 3. In the event the tenant or tenants fail to provide the information 44 required pursuant to paragraph one of this subdivision, the division 45 shall issue, on or before December first of such year, an order of 46 [decontrol] deregulation providing that such housing accommodation shall 47 not be subject to the provisions of this law as of the first day of 48 March in the year next succeeding the last day on which the tenant or 49 tenants were required to provide the information required by such para- 50 graph. A copy of such order shall be mailed by regular and certified 51 mail, return receipt requested, to the tenant or tenants and a copy 52 thereof shall be sent to the owner. 53 4. The provisions of the state freedom of information act shall not 54 apply to any income information obtained by the division pursuant to 55 this section.A. 2674--A 31 1 (d) This section shall apply only to paragraph (m) of subdivision two 2 of section two of this law. 3 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 4 this section, an owner shall offer the housing accommodation subject to 5 such order to the tenant at a rent not in excess of the market rent, 6 which for the purposes of this section means a rent obtainable in an 7 arm's length transaction. Such rental offer shall be made by the owner 8 in writing to the tenant by certified and regular mail and shall inform 9 the tenant that such offer must be accepted in writing within ten days 10 of receipt. The tenant shall respond within ten days after receipt of 11 such offer. If the tenant declines the offer or fails to respond within 12 such period, the owner may commence an action or proceeding for the 13 eviction of such tenant. 14 § 5. Subparagraph (j) of paragraph 2 of subdivision e of section 15 26-403 of the administrative code of the city of New York, as amended by 16 chapter 116 of the laws of 1997, is amended to read as follows: 17 (j) Upon the issuance of an order of [decontrol] deregulation by the 18 division, housing accommodations which: (1) are occupied by persons who 19 have a total annual income, as defined in and subject to the limitations 20 and process set forth in section 26-403.1 of this chapter, in excess of 21 [one hundred seventy-five thousand dollars] the deregulation income 22 threshold, as defined in section 26-403.1 of this chapter, per annum in 23 each of the two preceding calendar years[, as defined in and subject to24the limitations and process set forth in section 26-403.1 of this chap-25ter]; and (2) have a maximum rent [of two thousand dollars or more per26month] that equals or exceeds the deregulation rent threshold, as 27 defined in section 26-403.1 of this chapter. Provided however, that 28 this exclusion shall not apply to housing accommodations which became or 29 become subject to this law by virtue of receiving tax benefits pursuant 30 to section four hundred eighty-nine of the real property tax law. 31 § 6. Section 26-403.1 of the administrative code of the city of New 32 York, as added by chapter 253 of the laws of 1993, subdivision (b) and 33 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as 34 added by chapter 116 of the laws of 1997, is amended to read as follows: 35 § 26-403.1 High income rent [decontrol] deregulation. (a) 1. For 36 purposes of this section, annual income shall mean the federal adjusted 37 gross income as reported on the New York state income tax return. Total 38 annual income means the sum of the annual incomes of all persons who 39 occupy the housing accommodation as their primary residence other than 40 on a temporary basis, excluding bona fide employees of such occupants 41 residing therein in connection with such employment and excluding bona 42 fide subtenants in occupancy pursuant to the provisions of section two 43 hundred twenty-six-b of the real property law. In the case where a hous- 44 ing accommodation is sublet, the annual income of the sublessor shall be 45 considered. 46 2. Deregulation income threshold means three hundred thousand dollars. 47 For proceedings commenced on or after January first, two thousand 48 twelve, the deregulation income threshold shall be adjusted annually on 49 the first day of October of each year for proceedings in each subsequent 50 year by the change in the regional consumer price index for all urban 51 consumers, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as 52 established the preceding August. 53 3. Deregulation rent threshold means three thousand dollars. For 54 proceedings commenced on or after January first, two thousand twelve, 55 the deregulation rent threshold shall be adjusted annually on the first 56 day of October of each year for proceedings in each subsequent year byA. 2674--A 32 1 the change in the regional consumer price index for all urban consumers, 2 New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as established 3 the preceding August. 4 (b) On or before the first day of May in each calendar year, the owner 5 of each housing accommodation for which the maximum rent [is two thou-6sand dollars or more per month] equals or exceeds the deregulation rent 7 threshold may provide the tenant or tenants residing therein with an 8 income certification form prepared by the division of housing and commu- 9 nity renewal on which such tenant or tenants shall identify all persons 10 referred to in subdivision (a) of this section and shall certify whether 11 the total annual income is in excess of [one hundred seventy-five thou-12sand dollars] the deregulation income threshold in each of the two 13 preceding calendar years. Such income certification form shall state 14 that the income level certified to by the tenant may be subject to 15 verification by the department of taxation and finance pursuant to 16 section one hundred seventy-one-b of the tax law and shall not require 17 disclosure of any income information other than whether the aforemen- 18 tioned threshold has been exceeded. Such income certification form shall 19 clearly state that: (i) only tenants residing in housing accommodations 20 which have a maximum monthly rent [of two thousand dollars or more per21month] that equals or exceeds the deregulation rent threshold are 22 required to complete the certification form; (ii) that tenants have 23 protections available to them which are designed to prevent harassment; 24 (iii) that tenants are not required to provide any information regarding 25 their income except that which is requested on the form and may contain 26 such other information the division deems appropriate. The tenant or 27 tenants shall return the completed certification to the owner within 28 thirty days after service upon the tenant or tenants. In the event that 29 the total annual income as certified is in excess of [one hundred seven-30ty-five thousand dollars] the deregulation income threshold in each such 31 year, the owner may file the certification with the state division of 32 housing and community renewal on or before June thirtieth of such year. 33 Upon filing such certification with the division, the division shall, 34 within thirty days after the filing, issue an order of [decontrol] 35 deregulation providing that such housing accommodations shall not be 36 subject to the provisions of this law as of the first day of June in the 37 year next succeeding the filing of the certification by the owner. A 38 copy of such order shall be mailed by regular and certified mail, return 39 receipt requested, to the tenant or tenants and a copy thereof shall be 40 mailed to the owner. 41 (c) 1. In the event that the tenant or tenants either fail to return 42 the completed certification to the owner on or before the date required 43 by subdivision (b) of this section or the owner disputes the certif- 44 ication returned by the tenant or tenants, the owner may, on or before 45 June thirtieth of such year, petition the state division of housing and 46 community renewal to verify, pursuant to section one hundred seventy- 47 one-b of the tax law, whether the total annual income exceeds [one48hundred seventy-five thousand dollars] the deregulation income threshold 49 in each of the two preceding calendar years. Within twenty days after 50 the filing of such request with the division, the division shall notify 51 the tenant or tenants that such tenant or tenants must provide the divi- 52 sion with such information as the division and the department of taxa- 53 tion and finance shall require to verify whether the total annual income 54 exceeds [one hundred seventy-five thousand dollars] the deregulation 55 income threshold in each such year. The division's notification shall 56 require the tenant or tenants to provide the information to the divisionA. 2674--A 33 1 within sixty days of service upon such tenant or tenants and shall 2 include a warning in bold faced type that failure to respond will result 3 in an order of [decontrol] deregulation being issued by the division for 4 such housing accommodation. 5 2. If the department of taxation and finance determines that the total 6 annual income is in excess of [one hundred seventy-five thousand7dollars] the deregulation income threshold in each of the two preceding 8 calendar years, the division shall, on or before November fifteenth of 9 such year, notify the owner and tenants of the results of such verifica- 10 tion. Both the owner and the tenants shall have thirty days within which 11 to comment on such verification results. Within forty-five days after 12 the expiration of the comment period, the division shall, where appro- 13 priate, issue an order of [decontrol] deregulation providing that such 14 housing accommodation shall not be subject to the provisions of this law 15 as of the first day of March in the year next succeeding the filing of 16 the owner's petition with the division. A copy of such order shall be 17 mailed by regular and certified mail, return receipt requested, to the 18 tenant or tenants and a copy thereof shall be sent to the owner. 19 3. In the event the tenant or tenants fail to provide the information 20 required pursuant to paragraph one of this subdivision, the division 21 shall issue, on or before December first of such year, an order of 22 [decontrol] deregulation providing that such housing accommodation shall 23 not be subject to the provisions of this law as of the first day of 24 March in the year next succeeding the last day on which the tenant or 25 tenants were required to provide the information required by such para- 26 graph. A copy of such order shall be mailed by regular and certified 27 mail, return receipt requested, to the tenant or tenants and a copy 28 thereof shall be sent to the owner. 29 4. The provisions of the state freedom of information act shall not 30 apply to any income information obtained by the division pursuant to 31 this section. 32 (d) This section shall apply only to subparagraph (j) of paragraph two 33 of subdivision e of section 26-403 of this [code] chapter. 34 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 35 this section, an owner shall offer the housing accommodation subject to 36 such order to the tenant at a rent not in excess of the market rent, 37 which for the purposes of this section means a rent obtainable in an 38 arm's length transaction. Such rental offer shall be made by the owner 39 in writing to the tenant by certified and regular mail and shall inform 40 the tenant that such offer must be accepted in writing within ten days 41 of receipt. The tenant shall respond within ten days after receipt of 42 such offer. If the tenant declines the offer or fails to respond within 43 such period, the owner may commence an action or proceeding for the 44 eviction of such tenant. 45 § 7. Section 26-504.1 of the administrative code of the city of New 46 York, as amended by chapter 116 of the laws of 1997, is amended to read 47 as follows: 48 § 26-504.1 Exclusion of accommodations of high income renters. Upon 49 the issuance of an order by the division, "housing accommodations" shall 50 not include housing accommodations which: (1) are occupied by persons 51 who have a total annual income, as defined in and subject to the limita- 52 tions and process set forth in section 26-504.3 of this chapter, in 53 excess of [one hundred seventy-five thousand dollars per annum] the 54 deregulation income threshold, as defined in section 26-504.3 of this 55 chapter, for each of the two preceding calendar years[, as defined in56and subject to the limitations and process set forth in section 26-504.3A. 2674--A 34 1of this chapter]; and (2) have a legal regulated monthly rent [of two2thousand dollars or more per month] that equals or exceeds the deregu- 3 lation rent threshold, as defined in section 26-504.3 of this chapter. 4 Provided, however, that this exclusion shall not apply to housing accom- 5 modations which became or become subject to this law (a) by virtue of 6 receiving tax benefits pursuant to section four hundred twenty-one-a or 7 four hundred eighty-nine of the real property tax law, except as other- 8 wise provided in subparagraph (i) of paragraph (f) of subdivision two of 9 section four hundred twenty-one-a of the real property tax law, or (b) 10 by virtue of article seven-C of the multiple dwelling law. 11 § 8. Section 26-504.3 of the administrative code of the city of New 12 York, as added by chapter 253 of the laws of 1993, subdivision (b) and 13 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as 14 added by chapter 116 of the laws of 1997, is amended to read as follows: 15 § 26-504.3 High income rent [decontrol] deregulation. (a) 1. For 16 purposes of this section, annual income shall mean the federal adjusted 17 gross income as reported on the New York state income tax return. Total 18 annual income means the sum of the annual incomes of all persons whose 19 names are recited as the tenant or co-tenant on a lease who occupy the 20 housing accommodation and all other persons that occupy the housing 21 accommodation as their primary residence on other than a temporary 22 basis, excluding bona fide employees of such occupants residing therein 23 in connection with such employment and excluding bona fide subtenants in 24 occupancy pursuant to the provisions of section two hundred twenty-six-b 25 of the real property law. In the case where a housing accommodation is 26 sublet, the annual income of the tenant or co-tenant recited on the 27 lease who will reoccupy the housing accommodation upon the expiration of 28 the sublease shall be considered. 29 2. Deregulation income threshold means three hundred thousand dollars. 30 For proceedings commenced on or after January first, two thousand 31 twelve, the deregulation income threshold shall be adjusted annually on 32 the first day of October of each year for proceedings in each subsequent 33 year by the change in the regional consumer price index for all urban 34 consumers, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as 35 established the preceding August. 36 3. Deregulation rent threshold means three thousand dollars. For 37 proceedings commenced on or after January first, two thousand twelve, 38 the deregulation rent threshold shall be adjusted annually on the first 39 day of October of each year for proceedings in each subsequent year by 40 the change in the regional consumer price index for all urban consumers, 41 New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, as established 42 the preceding August. 43 (b) On or before the first day of May in each calendar year, the owner 44 of each housing accommodation for which the legal regulated rent [is two45thousand dollars or more per month] equals or exceeds the deregulation 46 rent threshold may provide the tenant or tenants residing therein with 47 an income certification form prepared by the division of housing and 48 community renewal on which such tenant or tenants shall identify all 49 persons referred to in subdivision (a) of this section and shall certify 50 whether the total annual income is in excess of [one hundred seventy-51five thousand dollars] the deregulation income threshold in each of the 52 two preceding calendar years. Such income certification form shall state 53 that the income level certified to by the tenant may be subject to 54 verification by the department of taxation and finance pursuant to 55 section one hundred seventy-one-b of the tax law and shall not require 56 disclosure of any income information other than whether the aforemen-A. 2674--A 35 1 tioned threshold has been exceeded. Such income certification form shall 2 clearly state that: (i) only tenants residing in housing accommodations 3 which have a legal regulated monthly rent [of two thousand dollars or4more per month], that equals or exceeds the deregulation rent threshold 5 are required to complete the certification form; (ii) that tenants have 6 protections available to them which are designed to prevent harassment; 7 (iii) that tenants are not required to provide any information regarding 8 their income except that which is requested on the form and may contain 9 such other information the division deems appropriate. The tenant or 10 tenants shall return the completed certification to the owner within 11 thirty days after service upon the tenant or tenants. In the event that 12 the total annual income as certified is in excess of [one hundred seven-13ty-five thousand dollars] the deregulation income threshold in each such 14 year, the owner may file the certification with the state division of 15 housing and community renewal on or before June thirtieth of such year. 16 Upon filing such certification with the division, the division shall, 17 within thirty days after the filing, issue an order providing that such 18 housing accommodation shall not be subject to the provisions of this act 19 upon the expiration of the existing lease. A copy of such order shall be 20 mailed by regular and certified mail, return receipt requested, to the 21 tenant or tenants and a copy thereof shall be mailed to the owner. 22 (c) 1. In the event that the tenant or tenants either fail to return 23 the completed certification to the owner on or before the date required 24 by subdivision (b) of this section or the owner disputes the certif- 25 ication returned by the tenant or tenants, the owner may, on or before 26 June thirtieth of such year, petition the state division of housing and 27 community renewal to verify, pursuant to section one hundred seventy- 28 one-b of the tax law, whether the total annual income exceeds [one29hundred seventy-five thousand dollars] the deregulation income threshold 30 in each of the two preceding calendar years. Within twenty days after 31 the filing of such request with the division, the division shall notify 32 the tenant or tenants named on the lease that such tenant or tenants 33 must provide the division with such information as the division and the 34 department of taxation and finance shall require to verify whether the 35 total annual income exceeds [one hundred seventy-five thousand dollars] 36 the deregulation income threshold in each such year. The division's 37 notification shall require the tenant or tenants to provide the informa- 38 tion to the division within sixty days of service upon such tenant or 39 tenants and shall include a warning in bold faced type that failure to 40 respond will result in an order being issued by the division providing 41 that such housing accommodation shall not be subject to the provisions 42 of this law. 43 2. If the department of taxation and finance determines that the total 44 annual income is in excess of [one hundred seventy-five thousand45dollars] the deregulation income threshold in each of the two preceding 46 calendar years, the division shall, on or before November fifteenth of 47 such year, notify the owner and tenants of the results of such verifica- 48 tion. Both the owner and the tenants shall have thirty days within which 49 to comment on such verification results. Within forty-five days after 50 the expiration of the comment period, the division shall, where appro- 51 priate, issue an order providing that such housing accommodation shall 52 not be subject to the provisions of this law upon the expiration of the 53 existing lease. A copy of such order shall be mailed by regular and 54 certified mail, return receipt requested, to the tenant or tenants and a 55 copy thereof shall be sent to the owner.A. 2674--A 36 1 3. In the event the tenant or tenants fail to provide the information 2 required pursuant to paragraph one of this subdivision, the division 3 shall issue, on or before December first of such year, an order provid- 4 ing that such housing accommodation shall not be subject to the 5 provisions of this law upon the expiration of the current lease. A copy 6 of such order shall be mailed by regular and certified mail, return 7 receipt requested, to the tenant or tenants and a copy thereof shall be 8 sent to the owner. 9 4. The provisions of the state freedom of information act shall not 10 apply to any income information obtained by the division pursuant to 11 this section. 12 (d) This section shall apply only to section 26-504.1 of this [code] 13 chapter. 14 (e) Upon receipt of such order of [decontrol] deregulation pursuant to 15 this section, an owner shall offer the housing accommodation subject to 16 such order to the tenant at a rent not in excess of the market rent, 17 which for the purposes of this section means a rent obtainable in an 18 arm's length transaction. Such rental offer shall be made by the owner 19 in writing to the tenant by certified and regular mail and shall inform 20 the tenant that such offer must be accepted in writing within ten days 21 of receipt. The tenant shall respond within ten days after receipt of 22 such offer. If the tenant declines the offer or fails to respond within 23 such period, the owner may commence an action or proceeding for the 24 eviction of such tenant. 25 § 9. Paragraph (b) of subdivision 3 of section 171-b of the tax law, 26 as amended by chapter 116 of the laws of 1997, is amended to read as 27 follows: 28 (b) The department, when requested by the division of housing and 29 community renewal, shall verify the total annual income of all persons 30 residing in housing accommodations as their primary residence subject to 31 rent regulation and shall notify the commissioner of the division of 32 housing and community renewal as may be appropriate whether the total 33 annual income exceeds [one hundred seventy-five thousand dollars per34annum] the applicable deregulation income threshold in each of the two 35 preceding calendar years. No other information regarding the annual 36 income of such persons shall be provided. 37 § 10. This act shall take effect immediately, provided, however, that: 38 (a) the amendments to paragraph 12 of subdivision a of section 5 and 39 section 5-a of section 4 of the emergency tenant protection act of nine- 40 teen seventy-four made by sections one and two of this act, respective- 41 ly, shall expire on the same date as such act expires and shall not 42 affect the expiration of such act as provided in section 17 of chapter 43 576 of the laws of 1974; 44 (b) the amendments to paragraph (m) of subdivision 2 of section 2 and 45 section 2-a of the emergency housing rent control law made by sections 46 three and four of this act, respectively, shall expire on the same date 47 as such law expires and shall not affect the expiration of such law as 48 provided in subdivision 2 of section 1 of chapter 274 of the laws of 49 1946; 50 (c) the amendments to sections 26-403 and 26-403.1 of the city rent 51 and rehabilitation law made by sections five and six of this act, 52 respectively, shall remain in full force and effect only as long as the 53 public emergency requiring the regulation and control of residential 54 rents and evictions continues, as provided in subdivision 3 of section 1 55 of the local emergency housing rent control act; andA. 2674--A 37 1 (d) the amendments to sections 26-504.1 and 26-504.3 of chapter 4 of 2 title 26 of the administrative code of the city of New York made by 3 sections seven and eight of this act, respectively, shall expire on the 4 same date as such law expires and shall not affect the expiration of 5 such law as provided under section 26-520 of such law. 6 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 7 sion, section or part of this act shall be adjudged by any court of 8 competent jurisdiction to be invalid, such judgment shall not affect, 9 impair, or invalidate the remainder thereof, but shall be confined in 10 its operation to the clause, sentence, paragraph, subdivision, section 11 or part thereof directly involved in the controversy in which such judg- 12 ment shall have been rendered. It is hereby declared to be the intent 13 of the legislature that this act would have been enacted even if such 14 invalid provisions had not been included herein. 15 § 3. This act shall take effect immediately provided, however, that 16 the applicable effective date of Parts A through L of this act shall be 17 as specifically set forth in the last section of such Parts.