Amd SS5 & 5-a, Emerg Ten Prot Act of 1974; amd S2, Emerg Hous Rent Cont L; amd SS26-504.1, 26-504.3, 26-403 &
26-403.1, NYC Ad Cd
Provides for decontrol of rent regulated housing accommodations when total average annual income over two calendar years exceeds $175,000 and the monthly rent for the rent regulated housing accommodation exceeds $1,500.
STATE OF NEW YORK
________________________________________________________________________
5150
2011-2012 Regular Sessions
IN SENATE
May 3, 2011
___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development
AN ACT to amend the emergency tenant protection act of nineteen seven-
ty-four, the emergency housing rent control law and the administrative
code of the city of New York, in relation to the rent threshold for
the deregulation of rents for high-income rent regulated tenants
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 12 of subdivision a of section 5 of section 4 of
2 chapter 576 of the laws of 1974, constituting the emergency tenant
3 protection act of nineteen seventy-four, as amended by chapter 116 of
4 the laws of 1997, is amended to read as follows:
5 (12) upon issuance of an order by the division, housing accommodations
6 which are: (1) occupied by persons who have a total average annual
7 income in excess of one hundred seventy-five thousand dollars per annum
8 [in each of] for the two preceding calendar years, as defined in and
9 subject to the limitations and process set forth in section five-a of
10 this act; and (2) have a legal regulated rent of two thousand dollars or
11 more per month. Provided however, that this exclusion shall not apply
12 to housing accommodations which became or become subject to this act (a)
13 by virtue of receiving tax benefits pursuant to section four hundred
14 twenty-one-a or four hundred eighty-nine of the real property tax law,
15 except as otherwise provided in subparagraph (i) of paragraph (f) of
16 subdivision two of section four hundred twenty-one-a of the real proper-
17 ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
18 law.
19 § 2. Section 5-a of section 4 of chapter 576 of the laws of 1974,
20 constituting the emergency tenant protection act of nineteen seventy-
21 four, as added by chapter 253 of the laws of 1993, subdivision (b) and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10129-02-1
S. 5150 2
1 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
2 added by chapter 116 of the laws of 1997, is amended to read as follows:
3 § 5-a. High income rent decontrol. (a) For purposes of this section,
4 annual income shall mean the federal [adjusted] gross income as reported
5 on the New York state income tax return. Total annual income means the
6 sum of the annual incomes of all persons whose names are recited as the
7 tenant or co-tenant on a lease who occupy the housing accommodation and
8 all other persons that occupy the housing accommodation as their primary
9 residence on other than a temporary basis, excluding bona fide employees
10 of such occupants residing therein in connection with such employment
11 and excluding bona fide subtenants in occupancy pursuant to the
12 provisions of section two hundred twenty-six-b of the real property law.
13 In the case where a housing accommodation is sublet, the annual income
14 of the tenant or co-tenant recited on the lease who will reoccupy the
15 housing accommodation upon the expiration of the sublease shall be
16 considered.
17 (b) On or before the first day of May in each calendar year, the owner
18 of each housing accommodation for which the legal regulated rent is
19 [two] one thousand five hundred dollars or more per month may provide
20 the tenant or tenants residing therein with an income certification form
21 prepared by the division of housing and community renewal on which such
22 tenant or tenants shall identify all persons referred to in subdivision
23 (a) of this section and shall certify whether the total average annual
24 income is in excess of one hundred seventy-five thousand dollars [in
25 each of] for the two preceding calendar years. Such income certification
26 form shall state that the income level certified to by the tenant may be
27 subject to verification by the department of taxation and finance pursu-
28 ant to section one hundred seventy-one-b of the tax law, and shall not
29 require disclosure of any information other than whether the aforemen-
30 tioned threshold has been exceeded. Such income certification form shall
31 clearly state that: (i) only tenants residing in housing accommodations
32 which had a legal regulated rent of two thousand dollars or more per
33 month are required to complete the certification form; (ii) that tenants
34 have protections available to them which are designed to prevent harass-
35 ment; (iii) that tenants are not required to provide any information
36 regarding their income except that which is requested on the form and
37 may contain such other information the division deems appropriate. The
38 tenant or tenants shall return the completed certification to the owner
39 within thirty days after service upon the tenant or tenants. In the
40 event that the total average annual income as certified is in excess of
41 one hundred seventy-five thousand dollars in each such year, the owner
42 may file the certification with the state division of housing and commu-
43 nity renewal on or before June thirtieth of such year. Upon filing such
44 certification with the division, the division shall, within thirty days
45 after the filing, issue an order providing that such housing accommo-
46 dation shall not be subject to the provisions of this act upon the expi-
47 ration of the existing lease. A copy of such order shall be mailed by
48 regular and certified mail, return receipt requested, to the tenant or
49 tenants and a copy thereof shall be mailed to the owner.
50 (c) 1. In the event that the tenant or tenants either fail to return
51 the completed certification to the owner on or before the date required
52 by subdivision (b) of this section or the owner disputes the certif-
53 ication returned by the tenant or tenants, the owner may, on or before
54 June thirtieth of such year, petition the state division of housing and
55 community renewal to verify, pursuant to section one hundred seventy-
56 one-b of the tax law, whether the total average annual income exceeds
S. 5150 3
1 one hundred seventy-five thousand dollars in each of the two preceding
2 calendar years. Within twenty days after the filing of such request with
3 the division, the division shall notify the tenant or tenants that such
4 tenant or tenants named on the lease must provide the division with such
5 information as the division and the department of taxation and finance
6 shall require to verify whether the total average annual income exceeds
7 one hundred seventy-five thousand dollars [in each such year] for the
8 two preceding calendar years. The division's notification shall require
9 the tenant or tenants to provide the information to the division within
10 sixty days of service upon such tenant or tenants and shall include a
11 warning in bold faced type that failure to respond will result in an
12 order being issued by the division providing that such housing accommo-
13 dations shall not be subject to the provisions of this act.
14 2. If the department of taxation and finance determines that the total
15 annual income is in excess of one hundred seventy-five thousand dollars
16 [in each of] for the two preceding calendar years, the division shall,
17 on or before November fifteenth of such year, notify the owner and
18 tenants of the results of such verification. Both the owner and the
19 tenants shall have thirty days within which to comment on such verifica-
20 tion results. Within forty-five days after the expiration of the
21 comment period, the division shall, where appropriate, issue an order
22 providing that such housing accommodation shall not be subject to the
23 provisions of this act upon expiration of the existing lease. A copy of
24 such order shall be mailed by regular and certified mail, return receipt
25 requested, to the tenant or tenants and a copy thereof shall be sent to
26 the owner. Where the department of taxation and finance is unable to
27 determine whether the total average annual income is in excess of one
28 hundred seventy-five thousand dollars for the two preceding calendar
29 years, it shall be presumed that the total average annual income of such
30 tenant is in excess of one hundred seventy-five thousand dollars for the
31 two preceding calendar years and the procedures of this paragraph shall
32 apply to such tenant. The state division of housing and community
33 renewal shall promulgate regulations which set forth the manner in which
34 such a tenant may rebut such presumption.
35 3. In the event the tenant or tenants fail to provide the information
36 required pursuant to paragraph one of this subdivision, the division
37 shall issue, on or before December first of such year, an order provid-
38 ing that such housing accommodation shall not be subject to the
39 provisions of this act upon the expiration [or] of the current lease. A
40 copy of such order shall be mailed by regular and certified mail, return
41 receipt requested, to the tenant or tenants and a copy thereof shall be
42 sent to the owner. Where the department of taxation and finance is
43 unable to determine whether the total average annual income is in excess
44 of one hundred seventy-five thousand dollars for the two preceding
45 calendar years, it shall be presumed that the total average annual
46 income of such tenant is in excess of one hundred seventy-five thousand
47 dollars for the two preceding calendar years and the procedures of this
48 paragraph shall apply to such tenant. The state division of housing and
49 community renewal shall promulgate regulations which set forth the
50 manner in which such a tenant may rebut such presumption.
51 4. The provisions of the state freedom of information act shall not
52 apply to any income information obtained by the division pursuant to
53 this section.
54 (d) This section shall apply only to paragraph twelve of subdivision a
55 of section five of this act.
S. 5150 4
1 (e) Upon receipt of such order of decontrol pursuant to this section,
2 an owner shall offer the housing accommodation subject to such order to
3 the tenant at a rent not in excess of the market rent, which for the
4 purposes of this section means a rent obtainable in an arm's length
5 transaction. Such rental offer shall be made by the owner in writing to
6 the tenant by certified and regular mail and shall inform the tenant
7 that such offer must be accepted in writing within ten days of receipt.
8 The tenant shall respond within ten days after receipt of such offer. If
9 the tenant declines the offer or fails to respond within such period,
10 the owner may commence an action or proceeding for the eviction of such
11 tenant.
12 § 3. Paragraph (m) of subdivision 2 of section 2 of chapter 274 of the
13 laws of 1946, constituting the emergency housing rent control law, as
14 amended by chapter 116 of the laws of 1997, is amended to read as
15 follows:
16 (m) upon the issuance of an order of decontrol by the division, hous-
17 ing accommodations which: (1) are occupied by persons who have a total
18 average annual income in excess of one hundred seventy-five thousand
19 dollars [in each of] per annum for the two preceding calendar years, as
20 defined in and subject to the limitations and process set forth in
21 section two-a of this law; and (2) have a maximum rent of [two] one
22 thousand five hundred dollars or more per month.
23 § 4. Section 2-a of chapter 274 of the laws of 1946, constituting the
24 emergency housing rent control law, as added by chapter 253 of the laws
25 of 1993, subdivision (b) and paragraphs 1 and 2 of subdivision (c) as
26 amended and subdivision (e) as added by chapter 116 of the laws of 1997,
27 is amended to read as follows:
28 § 2-a. (a) For purposes of this section, annual income shall mean the
29 federal [adjusted] gross income as reported on the New York state income
30 tax return. Total annual income means the sum of the annual incomes of
31 all persons who occupy the housing accommodation as their primary resi-
32 dence on other than a temporary basis, excluding bona fide employees of
33 such occupants residing therein in connection with such employment and
34 excluding bona fide subtenants in occupancy pursuant to the provisions
35 of section two hundred twenty-six-b of the real property law. In the
36 case where a housing accommodation is sublet, the annual income of the
37 sublessor shall be considered.
38 (b) On or before the first day of May in each calendar year, the owner
39 of each housing accommodation for which the maximum rent is [two] one
40 thousand five hundred dollars or more per month may provide the tenant
41 or tenants residing therein with an income certification form prepared
42 by the division of housing and community renewal on which such tenant or
43 tenants shall identify all persons referred to in subdivision (a) of
44 this section and shall certify whether the total average annual income
45 is in excess of one hundred seventy-five thousand dollars [in each of]
46 for the two preceding calendar years. Such income certification form
47 shall state that the income level certified to by the tenant may be
48 subject to verification by the department of taxation and finance pursu-
49 ant to section one hundred seventy-one-b of the tax law and shall not
50 require disclosure of any income information other than whether the
51 aforementioned threshold has been exceeded. Such income certification
52 form shall clearly state that: (i) only tenants residing in housing
53 accommodations which had a maximum rent of [two] one thousand five
54 hundred dollars or more per month are required to complete the certif-
55 ication form; (ii) that tenants have protections available to them which
56 are designed to prevent harassment; (iii) that tenants are not required
S. 5150 5
1 to provide any information regarding their income except that which is
2 requested on the form and may contain such other information the divi-
3 sion deems appropriate. The tenant or tenants shall return the completed
4 certification to the owner within thirty days after service upon the
5 tenant or tenants. In the event that the total average annual income as
6 certified is in excess of one hundred seventy-five thousand dollars in
7 each such year, the owner may file the certification with the state
8 division of housing and community renewal on or before June thirtieth of
9 such year. Upon filing such certification with the division, the divi-
10 sion shall, within thirty days after the filing, issue an order of
11 decontrol providing that such housing accommodations shall not be
12 subject to the provisions of this law as of the first day of June in the
13 year next succeeding the filing of the certification by the owner. A
14 copy of such order shall be mailed by regular and certified mail, return
15 receipt requested, to the tenant or tenants and a copy thereof shall be
16 mailed to the owner.
17 (c) 1. In the event that the tenant or tenants either fail to return
18 the completed certification to the owner on or before the date required
19 by subdivision (b) of this section or the owner disputes the certif-
20 ication returned by the tenant or tenants, the owner may, on or before
21 June thirtieth of such year, petition the state division of housing and
22 community renewal to verify, pursuant to section one hundred seventy-
23 one-b of the tax law, whether the total average annual income exceeds
24 one hundred seventy-five thousand dollars [in each of] for the two
25 preceding calendar years. Within twenty days after the filing of such
26 request with the division, the division shall notify the tenant or
27 tenants that such tenant or tenants must provide the division with such
28 information as the division and the department of taxation and finance
29 shall require to verify whether the total average annual income exceeds
30 one hundred seventy-five thousand dollars in each such year. The divi-
31 sion's notification shall require the tenant or tenants to provide the
32 information to the division within sixty days of service upon such
33 tenant or tenants and shall include a warning in bold faced type that
34 failure to respond will result in an order of decontrol being issued by
35 the division for such housing accommodation.
36 2. If the department of taxation and finance determines that the total
37 average annual income is in excess of one hundred seventy-five thousand
38 dollars [in each of] for the two preceding calendar years, the division
39 shall, on or before November fifteenth of such year, notify the owner
40 and tenants of the results of such verification. Both the owner and the
41 tenants shall have thirty days within which to comment on such verifica-
42 tion results. Within forty-five days after the expiration of the
43 comment period, the division shall, where appropriate, issue an order of
44 decontrol providing that such housing accommodation shall not be subject
45 to the provisions of this law as of the first day of March in the year
46 next succeeding the filing of the owner's petition with the division. A
47 copy of such order shall be mailed by regular and certified mail, return
48 receipt requested, to the tenant or tenants and a copy thereof shall be
49 sent to the owner. Where the department of taxation and finance is
50 unable to determine whether the total average annual income is in excess
51 of one hundred seventy-five thousand dollars for the two preceding
52 calendar years, it shall be presumed that the total average annual
53 income of such tenant is in excess of one hundred seventy-five thousand
54 dollars for the two preceding calendar years and the procedures of this
55 paragraph shall apply to such tenant. The state division of housing and
S. 5150 6
1 community renewal shall promulgate regulations which set forth the
2 manner in which such a tenant may rebut such presumption.
3 3. In the event the tenant or tenants fail to provide the information
4 required pursuant to paragraph one of this subdivision, the division
5 shall issue, on or before December first of such year, an order of
6 decontrol providing that such housing accommodation shall not be subject
7 to the provisions of this law as of the first day of March in the year
8 next succeeding the last day on which the tenant or tenants were
9 required to provide the information required by such paragraph. A copy
10 of such order shall be mailed by regular and certified mail, return
11 receipt requested, to the tenant or tenants and a copy thereof shall be
12 sent to the owner.
13 4. The provisions of the state freedom of information act shall not
14 apply to any income information obtained by the division pursuant to
15 this section.
16 (d) This section shall apply only to paragraph (m) of subdivision two
17 of section two of this law.
18 (e) Upon receipt of such order of decontrol pursuant to this section,
19 an owner shall offer the housing accommodation subject to such order to
20 the tenant at a rent not in excess of the market rent, which for the
21 purposes of this section means a rent obtainable in an arm's length
22 transaction. Such rental offer shall be made by the owner in writing to
23 the tenant by certified and regular mail and shall inform the tenant
24 that such offer must be accepted in writing within ten days of receipt.
25 The tenant shall respond within ten days after receipt of such offer. If
26 the tenant declines the offer or fails to respond within such period,
27 the owner may commence an action or proceeding for the eviction of such
28 tenant.
29 § 5. Section 26-504.1 of the administrative code of the city of New
30 York, as amended by chapter 116 of the laws of 1997, is amended to read
31 as follows:
32 § 26-504.1 Exclusion of accommodations of high income renters. Upon
33 the issuance of an order by the division, "housing accommodations" shall
34 not include housing accommodations which: (1) are occupied by persons
35 who have a total average annual income in excess of one hundred seven-
36 ty-five thousand dollars per annum for each of the two preceding calen-
37 dar years, as defined in and subject to the limitations and process set
38 forth in section 26-504.3 of this chapter; and (2) have a legal regu-
39 lated rent of [two] one thousand five hundred dollars or more per month.
40 Provided, however, that this exclusion shall not apply to housing accom-
41 modations which became or become subject to this law (a) by virtue of
42 receiving tax benefits pursuant to section four hundred twenty-one-a or
43 four hundred eighty-nine of the real property tax law, except as other-
44 wise provided in subparagraph (i) of paragraph (f) of subdivision two of
45 section four hundred twenty-one-a of the real property tax law, or (b)
46 by virtue of article seven-C of the multiple dwelling law.
47 § 6. Section 26-504.3 of the administrative code of the city of New
48 York, as added by chapter 253 of the laws of 1993, subdivision (b) and
49 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
50 added by chapter 116 of the laws of 1997, is amended to read as follows:
51 § 26-504.3 High income rent decontrol. (a) For purposes of this
52 section, annual income shall mean the federal [adjusted] gross income as
53 reported on the New York state income tax return. Total annual income
54 means the sum of the annual incomes of all persons whose names are
55 recited as the tenant or co-tenant on a lease who occupy the housing
56 accommodation and all other persons that occupy the housing accommo-
S. 5150 7
1 dation as their primary residence on other than a temporary basis,
2 excluding bona fide employees of such occupants residing therein in
3 connection with such employment and excluding bona fide subtenants in
4 occupancy pursuant to the provisions of section two hundred twenty-six-b
5 of the real property law. In the case where a housing accommodation is
6 sublet, the annual income of the tenant or co-tenant recited on the
7 lease who will reoccupy the housing accommodation upon the expiration of
8 the sublease shall be considered.
9 (b) On or before the first day of May in each calendar year, the owner
10 of each housing accommodation for which the legal regulated rent is
11 [two] one thousand five hundred dollars or more per month may provide
12 the tenant or tenants residing therein with an income certification form
13 prepared by the division of housing and community renewal on which such
14 tenant or tenants shall identify all persons referred to in subdivision
15 (a) of this section and shall certify whether the total average annual
16 income is in excess of one hundred seventy-five thousand dollars [in
17 each of] for the two preceding calendar years. Such income certification
18 form shall state that the income level certified to by the tenant may be
19 subject to verification by the department of taxation and finance pursu-
20 ant to section one hundred seventy-one-b of the tax law and shall not
21 require disclosure of any income information other than whether the
22 aforementioned threshold has been exceeded. Such income certification
23 form shall clearly state that: (i) [only tenants residing in housing
24 accommodations which have a legal regulated rent of two thousand dollars
25 or more per month are required to complete the certification form; (ii)]
26 that tenants have protections available to them which are designed to
27 prevent harassment; [(iii)] and (ii) that tenants are not required to
28 provide any information regarding their income except that which is
29 requested on the form and may contain such other information the divi-
30 sion deems appropriate. The tenant or tenants shall return the completed
31 certification to the owner within thirty days after service upon the
32 tenant or tenants. In the event that the total average annual income as
33 certified is in excess of one hundred seventy-five thousand dollars in
34 each such year, the owner may file the certification with the state
35 division of housing and community renewal on or before June thirtieth of
36 such year. Upon filing such certification with the division, the divi-
37 sion shall, within thirty days after the filing, issue an order provid-
38 ing that such housing accommodation shall not be subject to the
39 provisions of this act upon the expiration of the existing lease. A copy
40 of such order shall be mailed by regular and certified mail, return
41 receipt requested, to the tenant or tenants and a copy thereof shall be
42 mailed to the owner.
43 (c) 1. In the event that the tenant or tenants either fail to return
44 the completed certification to the owner on or before the date required
45 by subdivision (b) of this section or the owner disputes the certif-
46 ication returned by the tenant or tenants, the owner may, on or before
47 June thirtieth of such year, petition the state division of housing and
48 community renewal to verify, pursuant to section one hundred seventy-
49 one-b of the tax law, whether the total average annual income exceeds
50 one hundred seventy-five thousand dollars [in each of] for the two
51 preceding calendar years. Within twenty days after the filing of such
52 request with the division, the division shall notify the tenant or
53 tenants named on the lease that such tenant or tenants must provide the
54 division with such information as the division and the department of
55 taxation and finance shall require to verify whether the total average
56 annual income exceeds one hundred seventy-five thousand dollars in each
S. 5150 8
1 such year. The division's notification shall require the tenant or
2 tenants to provide the information to the division within sixty days of
3 service upon such tenant or tenants and shall include a warning in bold
4 faced type that failure to respond will result in an order being issued
5 by the division providing that such housing accommodation shall not be
6 subject to the provisions of this law.
7 2. If the department of taxation and finance determines that the total
8 average annual income is in excess of one hundred seventy-five thousand
9 dollars [in each of] for the two preceding calendar years, the division
10 shall, on or before November fifteenth of such year, notify the owner
11 and tenants of the results of such verification. Both the owner and the
12 tenants shall have thirty days within which to comment on such verifica-
13 tion results. Within forty-five days after the expiration of the
14 comment period, the division shall, where appropriate, issue an order
15 providing that such housing accommodation shall not be subject to the
16 provisions of this law upon the expiration of the existing lease. A copy
17 of such order shall be mailed by regular and certified mail, return
18 receipt requested, to the tenant or tenants and a copy thereof shall be
19 sent to the owner. Where the department of taxation and finance is
20 unable to determine, based upon the information contained in the infor-
21 mation provided by the tenant, whether the total average annual income
22 is in excess of one hundred seventy-five thousand dollars for the two
23 preceding calendar years, it shall be presumed that the total average
24 annual income of such tenant is in excess of one hundred seventy-five
25 thousand dollars for the two preceding calendar years and the procedures
26 of this paragraph shall apply to such tenant. The state division of
27 housing and community renewal shall promulgate regulations which set
28 forth the manner in which such a tenant may rebut such presumption.
29 3. In the event the tenant or tenants fail to provide the information
30 required pursuant to paragraph one of this subdivision, the division
31 shall issue, on or before December first of such year, an order provid-
32 ing that such housing accommodation shall not be subject to the
33 provisions of this law upon the expiration of the current lease. A copy
34 of such order shall be mailed by regular and certified mail, return
35 receipt requested, to the tenant or tenants and a copy thereof shall be
36 sent to the owner.
37 4. The provisions of the state freedom of information act shall not
38 apply to any income information obtained by the division pursuant to
39 this section.
40 (d) This section shall apply only to section 26-504.1 of this code.
41 (e) Upon receipt of such order of decontrol pursuant to this section,
42 an owner shall offer the housing accommodation subject to such order to
43 the tenant at a rent not in excess of the market rent, which for the
44 purposes of this section means a rent obtainable in an arm's length
45 transaction. Such rental offer shall be made by the owner in writing to
46 the tenant by certified and regular mail and shall inform the tenant
47 that such offer must be accepted in writing within ten days of receipt.
48 The tenant shall respond within ten days after receipt of such offer. If
49 the tenant declines the offer or fails to respond within such period,
50 the owner may commence an action or proceeding for the eviction of such
51 tenant.
52 § 7. Subparagraph (j) of paragraph 2 of subdivision e of section
53 26-403 of the administrative code of the city of New York, as amended by
54 chapter 116 of the laws of 1997, is amended to read as follows:
55 (j) Upon the issuance of an order of decontrol by the division, hous-
56 ing accommodations which: (1) are occupied by persons who have a total
S. 5150 9
1 average annual income in excess of one hundred seventy-five thousand
2 dollars per annum [in each of] for the two preceding calendar years, as
3 defined in and subject to the limitations and process set forth in
4 section 26-403.1 of this chapter; and (2) have a maximum rent of [two]
5 one thousand five hundred dollars or more per month. Provided however,
6 that this exclusion shall not apply to housing accommodations which
7 became or become subject to this law by virtue of receiving tax benefits
8 pursuant to section four hundred eighty-nine of the real property tax
9 law.
10 § 8. Section 26-403.1 of the administrative code of the city of New
11 York, as added by chapter 253 of the laws of 1993, subdivision (b) and
12 paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
13 added by chapter 116 of the laws of 1997, is amended to read as follows:
14 § 26-403.1 High income rent decontrol. (a) For purposes of this
15 section, annual income shall mean the federal [adjusted] gross income as
16 reported on the New York state income tax return. Total annual income
17 means the sum of the annual incomes of all persons who occupy the hous-
18 ing accommodation as their primary residence other than on a temporary
19 basis, excluding bona fide employees of such occupants residing therein
20 in connection with such employment and excluding bona fide subtenants in
21 occupancy pursuant to the provisions of section two hundred twenty-six-b
22 of the real property law. In the case where a housing accommodation is
23 sublet, the annual income of the sublessor shall be considered.
24 (b) On or before the first day of May in each calendar year, the owner
25 of each housing accommodation for which the maximum rent is [two] one
26 thousand five hundred dollars or more per month may provide the tenant
27 or tenants residing therein with an income certification form prepared
28 by the division of housing and community renewal on which such tenant or
29 tenants shall identify all persons referred to in subdivision (a) of
30 this section and shall certify whether the total average annual income
31 is in excess of one hundred seventy-five thousand dollars [in each of]
32 for the two preceding calendar years. Such income certification form
33 shall state that the income level certified to by the tenant may be
34 subject to verification by the department of taxation and finance pursu-
35 ant to section one hundred seventy-one-b of the tax law and shall not
36 require disclosure of any income information other than whether the
37 aforementioned threshold has been exceeded. Such income certification
38 form shall clearly state that: (i) [only tenants residing in housing
39 accommodations which have a maximum rent of two thousand dollars or more
40 per month are required to complete the certification form; (ii)] that
41 tenants have protections available to them which are designed to prevent
42 harassment; [(iii)] and (ii) that tenants are not required to provide
43 any information regarding their income except that which is requested on
44 the form and may contain such other information the division deems
45 appropriate. The tenant or tenants shall return the completed certif-
46 ication to the owner within thirty days after service upon the tenant or
47 tenants. In the event that the total average annual income as certified
48 is in excess of one hundred seventy-five thousand dollars in each such
49 year, the owner may file the certification with the state division of
50 housing and community renewal on or before June thirtieth of such year.
51 Upon filing such certification with the division, the division shall,
52 within thirty days after the filing, issue an order of decontrol provid-
53 ing that such housing accommodations shall not be subject to the
54 provisions of this law as of the first day of June in the year next
55 succeeding the filing of the certification by the owner. A copy of such
56 order shall be mailed by regular and certified mail, return receipt
S. 5150 10
1 requested, to the tenant or tenants and a copy thereof shall be mailed
2 to the owner.
3 (c) 1. In the event that the tenant or tenants either fail to return
4 the completed certification to the owner on or before the date required
5 by subdivision (b) of this section or the owner disputes the certif-
6 ication returned by the tenant or tenants, the owner may, on or before
7 June thirtieth of such year, petition the state division of housing and
8 community renewal to verify, pursuant to section one hundred seventy-
9 one-b of the tax law, whether the total average annual income exceeds
10 one hundred seventy-five thousand dollars [in each of] for the two
11 preceding calendar years. Within twenty days after the filing of such
12 request with the division, the division shall notify the tenant or
13 tenants that such tenant or tenants must provide the division with such
14 information as the division and the department of taxation and finance
15 shall require to verify whether the total average annual income exceeds
16 one hundred seventy-five thousand dollars in each such year. The divi-
17 sion's notification shall require the tenant or tenants to provide the
18 information to the division within sixty days of service upon such
19 tenant or tenants and shall include a warning in bold faced type that
20 failure to respond will result in an order of decontrol being issued by
21 the division for such housing accommodation.
22 2. If the department of taxation and finance determines that the total
23 average annual income is in excess of one hundred seventy-five thousand
24 dollars [in each of] for the two preceding calendar years, the division
25 shall, on or before November fifteenth of such year, notify the owner
26 and tenants of the results of such verification. Both the owner and the
27 tenants shall have thirty days within which to comment on such verifica-
28 tion results. Within forty-five days after the expiration of the
29 comment period, the division shall, where appropriate, issue an order of
30 decontrol providing that such housing accommodation shall not be subject
31 to the provisions of this law as of the first day of March in the year
32 next succeeding the filing of the owner's petition with the division. A
33 copy of such order shall be mailed by regular and certified mail, return
34 receipt requested, to the tenant or tenants and a copy thereof shall be
35 sent to the owner. Where the department of taxation and finance is
36 unable to determine, based upon the information contained in the infor-
37 mation provided by the tenant, whether the total average annual income
38 is in excess of one hundred seventy-five thousand dollars for the two
39 preceding calendar years, it shall be presumed that the total average
40 annual income of such tenant is in excess of one hundred seventy-five
41 thousand dollars for the two preceding calendar years and the procedures
42 of this paragraph shall apply to such tenant. The state division of
43 housing and community renewal shall promulgate regulations which set
44 forth the manner in which such a tenant may rebut such presumption.
45 3. In the event the tenant or tenants fail to provide the information
46 required pursuant to paragraph one of this subdivision, the division
47 shall issue, on or before December first of such year, an order of
48 decontrol providing that such housing accommodation shall not be subject
49 to the provisions of this law as of the first day of March in the year
50 next succeeding the last day on which the tenant or tenants were
51 required to provide the information required by such paragraph. A copy
52 of such order shall be mailed by regular and certified mail, return
53 receipt requested, to the tenant or tenants and a copy thereof shall be
54 sent to the owner.
S. 5150 11
1 4. The provisions of the state freedom of information act shall not
2 apply to any income information obtained by the division pursuant to
3 this section.
4 (d) This section shall apply only to subparagraph (j) of paragraph two
5 of subdivision e of section 26-403 of this code.
6 (e) Upon receipt of such order of decontrol pursuant to this section,
7 an owner shall offer the housing accommodation subject to such order to
8 the tenant at a rent not in excess of the market rent, which for the
9 purposes of this section means a rent obtainable in an arm's length
10 transaction. Such rental offer shall be made by the owner in writing to
11 the tenant by certified and regular mail and shall inform the tenant
12 that such offer must be accepted in writing within ten days of receipt.
13 The tenant shall respond within ten days after receipt of such offer. If
14 the tenant declines the offer or fails to respond within such period,
15 the owner may commence an action or proceeding for the eviction of such
16 tenant.
17 § 9. This act shall take effect immediately and shall first apply to
18 income certification forms provided by owners to tenants on or after
19 January 1, 2012, provided that:
20 (a) the amendments to the emergency tenant protection act of nineteen
21 seventy-four made by sections one and two of this act shall expire on
22 the same date as such act expires and shall not affect the expiration of
23 such act as provided in section 17 of chapter 576 of the laws of 1974;
24 (b) the amendments to the emergency housing rent control law made by
25 sections three and four of this act shall expire on the same date as
26 such law expires and shall not affect the expiration of such law as
27 provided in subdivision 2 of section 1 of chapter 274 of the laws of
28 1946;
29 (c) the amendments to chapter 4 of title 26 of the administrative code
30 of the city of New York made by sections five and six of this act shall
31 expire on the same date as such law expires and shall not affect the
32 expiration of such law as provided under section 26-520 of such law; and
33 (d) the amendments to the city rent and rehabilitation law made by
34 sections seven and eight of this act shall remain in full force and
35 effect only as long as the public emergency requiring the regulation and
36 control of residential rents and evictions continues, as provided in
37 subdivision 3 of section 1 of the local emergency housing rent control
38 act.
