Bill Text: NY A05286 | 2019-2020 | General Assembly | Introduced


Bill Title: Eliminates rent regulation protections for certain high income tenants; lowers the annual income for certain protections to $125,000; repeals certain provisions relating to de-regulation of rent-stabilized housing accommodations upon vacancy.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced) 2019-02-08 - referred to housing [A05286 Detail]

Download: New_York-2019-A05286-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5286
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 8, 2019
                                       ___________
        Introduced by M. of A. KOLB, FITZPATRICK, RAIA, MONTESANO -- Multi-Spon-
          sored by -- M.  of A. BARCLAY, CROUCH -- read once and referred to the
          Committee on Housing
        AN  ACT to amend the emergency housing rent control law, the administra-
          tive code of the city of New York and the emergency tenant  protection
          act  of  nineteen  seventy-four, in relation to eliminating rent regu-
          lation protections for certain high income tenants; to amend the emer-
          gency housing rent control  law,  the  local  emergency  housing  rent
          control  act, the emergency tenant protection act of nineteen seventy-
          four and the administrative code of the city of New York, in  relation
          to  the  deregulation  of  rent-stabilized housing accommodations upon
          vacancy; and to repeal certain provisions  of  the  emergency  housing
          rent  control law, the administrative code of the city of New York and
          the emergency tenant protection act of nineteen seventy-four  relating
          to  eliminating  rent  regulation  protections for certain high income
          tenants
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Paragraph (n) of subdivision 2 of section 2 of chapter 274
     2  of the laws of 1946 constituting the emergency housing rent control  law
     3  is REPEALED.
     4    §  2. Section 2-a of chapter 274 of the laws of 1946, constituting the
     5  emergency housing rent control law, as amended by section 32 of  part  B
     6  of  chapter  97  of  the laws of 2011, paragraph 3 of subdivision (a) as
     7  amended by section 14 of part A of chapter 20 of the laws  of  2015,  is
     8  amended to read as follows:
     9    § 2-a.  (a)  1. For purposes of this section, annual income shall mean
    10  the federal adjusted gross income as reported  on  the  New  York  state
    11  income  tax  return.  Total  annual  income  means the sum of the annual
    12  incomes of all persons who occupy the  housing  accommodation  as  their
    13  primary  residence  on other than a temporary basis, excluding bona fide
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04471-01-9

        A. 5286                             2
     1  employees of such occupants residing therein  in  connection  with  such
     2  employment  and  excluding bona fide subtenants in occupancy pursuant to
     3  the provisions of section two hundred twenty-six-b of the real  property
     4  law.  In  the  case  where a housing accommodation is sublet, the annual
     5  income of the sublessor shall be considered.
     6    2. Deregulation income threshold means total annual  income  equal  to
     7  one  hundred  seventy-five thousand dollars in each of the two preceding
     8  calendar years for proceedings commenced before July first, two thousand
     9  eleven. For proceedings commenced on or after July first,  two  thousand
    10  [eleven]  eighteen,  the  deregulation  income threshold means the total
    11  annual income equal to [two hundred] one  hundred  twenty-five  thousand
    12  dollars in each of the two preceding calendar years.
    13    [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
    14  proceedings commenced prior to July  first,  two  thousand  eleven.  For
    15  proceedings  commenced  on or after July first, two thousand eleven, the
    16  deregulation rent threshold means two thousand five hundred dollars. For
    17  proceedings commenced on or after July first, two thousand fifteen,  the
    18  deregulation  rent  threshold  means two thousand seven hundred dollars,
    19  provided, however, that on January 1, 2016, and annually thereafter, the
    20  maximum legal regulated rent for this deregulation  threshold  shall  be
    21  adjusted  by  the  same  percentage  as the most recent one year renewal
    22  adjustment adopted by the rent guidelines board.]
    23    (b) On or before the first day of May in each calendar year, the owner
    24  of each housing accommodation [for which the maximum monthly rent equals
    25  or exceeds the deregulation rent threshold] may provide  the  tenant  or
    26  tenants  residing  therein with an income certification form prepared by
    27  the division of housing and community renewal on which  such  tenant  or
    28  tenants  shall  identify  all  persons referred to in subdivision (a) of
    29  this section and shall certify whether the total  annual  income  is  in
    30  excess of the deregulation income threshold in each of the two preceding
    31  calendar  years.  Such  income  certification  form shall state that the
    32  income level certified to by the tenant may be subject  to  verification
    33  by  the  department  of  taxation  and  finance  pursuant to section one
    34  hundred seventy-one-b of the tax law and shall not require disclosure of
    35  any income information other than whether the  aforementioned  threshold
    36  has  been  exceeded.  Such income certification form shall clearly state
    37  that: (i) [only tenants residing in housing accommodations which  had  a
    38  maximum  monthly  rent  equal  to  or in excess of the deregulation rent
    39  threshold are required to complete the certification  form;  (ii)  that]
    40  tenants have protections available to them which are designed to prevent
    41  harassment;  [(iii)  that]  and (ii) tenants are not required to provide
    42  any information regarding their income except that which is requested on
    43  the form and may contain  such  other  information  the  division  deems
    44  appropriate.  The  tenant  or tenants shall return the completed certif-
    45  ication to the owner within thirty days after service upon the tenant or
    46  tenants. In the event that the total annual income as  certified  is  in
    47  excess of the deregulation income threshold in each of the two preceding
    48  calendar  years,  the  owner  may  file the certification with the state
    49  division of housing and community renewal on or before June thirtieth of
    50  such year. Upon filing such certification with the division,  the  divi-
    51  sion  shall,  within  thirty  days  after  the filing, issue an order of
    52  deregulation providing that such housing  accommodations  shall  not  be
    53  subject to the provisions of this law as of the first day of June in the
    54  year  next  succeeding  the  filing of the certification by the owner. A
    55  copy of such order shall be mailed by regular and certified mail, return

        A. 5286                             3
     1  receipt requested, to the tenant or tenants and a copy thereof shall  be
     2  mailed 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 annual income exceeds the dereg-
    10  ulation  income  threshold  in each of the two preceding calendar years.
    11  Within twenty days after the filing of such request with  the  division,
    12  the  division  shall  notify  the  tenant or tenants that such tenant or
    13  tenants must provide the division with such information as the  division
    14  and  the  department  of  taxation  and  finance shall require to verify
    15  whether the total annual income exceeds the deregulation income  thresh-
    16  old  in each of the two preceding calendar years. The division's notifi-
    17  cation shall require the tenant or tenants to provide the information to
    18  the division within sixty days of service upon such  tenant  or  tenants
    19  and  shall  include a warning in bold faced type that failure to respond
    20  will result in an order of deregulation being issued by the division for
    21  such housing accommodation.
    22    2. If the department of taxation and finance determines that the total
    23  annual income is in excess of the deregulation income threshold in  each
    24  of  the  two  preceding calendar years, the division shall, on or before
    25  November fifteenth of such year, notify the owner  and  tenants  of  the
    26  results  of such verification. Both the owner and the tenants shall have
    27  thirty days within which to comment on such verification results. Within
    28  forty-five days after the expiration of the comment period, the division
    29  shall, where appropriate, issue an order of deregulation providing  that
    30  such  housing  accommodation  shall  not be subject to the provisions of
    31  this law as of the first day of March in the year  next  succeeding  the
    32  filing  of  the owner's petition with the division. A copy of such order
    33  shall be mailed by regular and certified mail, return receipt requested,
    34  to the tenant or tenants and a copy thereof shall be sent to the owner.
    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  of
    38  deregulation  providing  that  such  housing  accommodation shall not be
    39  subject to the provisions of this law as of the first day  of  March  in
    40  the  year  next  succeeding  the last day on which the tenant or tenants
    41  were required to provide the information required by such  paragraph.  A
    42  copy of such order shall be mailed by regular and certified mail, return
    43  receipt  requested, to the tenant or tenants and a copy thereof shall be
    44  sent to the owner.
    45    4. The provisions of the state freedom of information  act  shall  not
    46  apply  to  any  income  information obtained by the division pursuant to
    47  this section.
    48    (d) This section shall apply only to paragraph (m) of subdivision  two
    49  of section two of this law.
    50    (e)  Upon  receipt  of  such  order  of  deregulation pursuant to this
    51  section, an owner shall offer the housing accommodation subject to  such
    52  order  to  the  tenant at a rent not in excess of the market rent, which
    53  for the purposes of this section means a rent  obtainable  in  an  arm's
    54  length  transaction.  Such  rental  offer  shall be made by the owner in
    55  writing to the tenant by certified and regular mail and shall inform the
    56  tenant that such offer must be accepted in writing within  ten  days  of

        A. 5286                             4
     1  receipt.  The tenant shall respond within ten days after receipt of such
     2  offer.  If the tenant declines the offer or fails to respond within such
     3  period, the owner may commence an action or proceeding for the  eviction
     4  of such tenant.
     5    §  3.  Section  26-403.1 of the administrative code of the city of New
     6  York, as amended by section 34 of part B of chapter 97 of  the  laws  of
     7  2011,  and  paragraph  3  of subdivision (a) as amended by section 15 of
     8  part A of chapter 20 of the laws of 2015, is amended to read as follows:
     9    § 26-403.1 High income rent deregulation. (a) 1. For purposes of  this
    10  section,  annual  income shall mean the federal adjusted gross income as
    11  reported on the New York state income tax return.  Total  annual  income
    12  means  the sum of the annual incomes of all persons who occupy the hous-
    13  ing accommodation as their primary residence other than on  a  temporary
    14  basis,  excluding bona fide employees of such occupants residing therein
    15  in connection with such employment and excluding bona fide subtenants in
    16  occupancy pursuant to the provisions of section two hundred twenty-six-b
    17  of the real property law. In the case where a housing  accommodation  is
    18  sublet, the annual income of the sublessor shall be considered.
    19    2.  Deregulation  income  threshold means total annual income equal to
    20  one hundred seventy-five thousand dollars in each of the  two  preceding
    21  calendar  years for proceedings commenced prior to July first, two thou-
    22  sand eleven. For proceedings commenced on or after July first, two thou-
    23  sand [eleven] eighteen, the  deregulation  income  threshold  means  the
    24  total annual income equal to [two hundred] one hundred twenty-five thou-
    25  sand dollars in each of the two preceding calendar years.
    26    [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
    27  proceedings commenced  before  July  first,  two  thousand  eleven.  For
    28  proceedings  commenced  on or after July first, two thousand eleven, the
    29  deregulation rent threshold means two thousand five hundred dollars. For
    30  proceedings commenced on or after July first, two thousand fifteen,  the
    31  deregulation  rent  threshold  means two thousand seven hundred dollars,
    32  provided, however, that on January  first,  two  thousand  sixteen,  and
    33  annually  thereafter, such deregulation rent threshold shall be adjusted
    34  by the same percentage as the most recent one  year  renewal  adjustment
    35  adopted by the relevant guidelines board.]
    36    (b) On or before the first day of May in each calendar year, the owner
    37  of  each  housing  accommodation  [for  which the maximum rent equals or
    38  exceeds the deregulation rent  threshold]  may  provide  the  tenant  or
    39  tenants  residing  therein with an income certification form prepared by
    40  the division of housing and community renewal on which  such  tenant  or
    41  tenants  shall  identify  all  persons referred to in subdivision (a) of
    42  this section and shall certify whether the total  annual  income  is  in
    43  excess of the deregulation income threshold in each of the two preceding
    44  calendar  years.  Such  income  certification  form shall state that the
    45  income level certified to by the tenant may be subject  to  verification
    46  by  the  department  of  taxation  and  finance  pursuant to section one
    47  hundred seventy-one-b of the tax law and shall not require disclosure of
    48  any income information other than whether the  aforementioned  threshold
    49  has  been  exceeded.  Such income certification form shall clearly state
    50  that: (i) [only tenants residing in housing accommodations which have  a
    51  maximum monthly rent that equals or exceeds the deregulation rent thres-
    52  hold are required to complete the certification form; (ii) that] tenants
    53  have protections available to them which are designed to prevent harass-
    54  ment;  [(iii)  that]  and  (ii)  tenants are not required to provide any
    55  information regarding their income except that which is requested on the
    56  form and may contain such other information the division deems appropri-

        A. 5286                             5
     1  ate. The tenant or tenants shall return the completed  certification  to
     2  the  owner  within thirty days after service upon the tenant or tenants.
     3  In the event that the total annual income as certified is in  excess  of
     4  the  deregulation income threshold in each of the two preceding calendar
     5  years, the owner may file the certification with the state  division  of
     6  housing  and community renewal on or before June thirtieth of such year.
     7  Upon filing such certification with the division,  the  division  shall,
     8  within  thirty  days  after  the  filing, issue an order of deregulation
     9  providing that such housing accommodations shall not be subject  to  the
    10  provisions  of  this  law  as  of the first day of June in the year next
    11  succeeding the filing of the certification by the owner. A copy of  such
    12  order  shall  be  mailed  by  regular and certified mail, return receipt
    13  requested, to the tenant or tenants and a copy thereof shall  be  mailed
    14  to the owner.
    15    (c)  1.  In the event that the tenant or tenants either fail to return
    16  the completed certification to the owner on or before the date  required
    17  by  subdivision  (b)  of  this section or the owner disputes the certif-
    18  ication returned by the tenant or tenants, the owner may, on  or  before
    19  June  thirtieth of such year, petition the state division of housing and
    20  community renewal to verify, pursuant to section  one  hundred  seventy-
    21  one-b of the tax law, whether the total annual income exceeds the dereg-
    22  ulation  income  threshold  in each of the two preceding calendar years.
    23  Within twenty days after the filing of such request with  the  division,
    24  the  division  shall  notify  the  tenant or tenants that such tenant or
    25  tenants must provide the division with such information as the  division
    26  and  the  department  of  taxation  and  finance shall require to verify
    27  whether the total annual income exceeds the deregulation income  thresh-
    28  old  in each of the two preceding calendar years. The division's notifi-
    29  cation shall require the tenant or tenants to provide the information to
    30  the division within sixty days of service upon such  tenant  or  tenants
    31  and  shall  include a warning in bold faced type that failure to respond
    32  will result in an order of deregulation being issued by the division for
    33  such housing accommodation.
    34    2. If the department of taxation and finance determines that the total
    35  annual income is in excess of the deregulation income threshold in  each
    36  of  the  two  preceding calendar years, the division shall, on or before
    37  November fifteenth of such year, notify the owner  and  tenants  of  the
    38  results  of such verification. Both the owner and the tenants shall have
    39  thirty days within which to comment on such verification results. Within
    40  forty-five days after the expiration of the comment period, the division
    41  shall, where appropriate, issue an order of deregulation providing  that
    42  such  housing  accommodation  shall  not be subject to the provisions of
    43  this law as of the first day of March in the year  next  succeeding  the
    44  filing  of  the owner's petition with the division. A copy of such order
    45  shall be mailed by regular and certified mail, return receipt requested,
    46  to the tenant or tenants and a copy thereof shall be sent to the owner.
    47    3. In the event the tenant or tenants fail to provide the  information
    48  required  pursuant  to  paragraph  one of this subdivision, the division
    49  shall issue, on or before December first  of  such  year,  an  order  of
    50  deregulation  providing  that  such  housing  accommodation shall not be
    51  subject to the provisions of this law as of the first day  of  March  in
    52  the  year  next  succeeding  the last day on which the tenant or tenants
    53  were required to provide the information required by such  paragraph.  A
    54  copy of such order shall be mailed by regular and certified mail, return
    55  receipt  requested, to the tenant or tenants and a copy thereof shall be
    56  sent to the owner.

        A. 5286                             6
     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 chapter.
     6    (e)  Upon  receipt  of  such  order  of  deregulation pursuant to this
     7  section, an owner shall offer the housing accommodation subject to  such
     8  order  to  the  tenant at a rent not in excess of the market rent, which
     9  for the purposes of this section means a rent  obtainable  in  an  arm's
    10  length  transaction.  Such  rental  offer  shall be made by the owner in
    11  writing to the tenant by certified and regular mail and shall inform the
    12  tenant that such offer must be accepted in writing within  ten  days  of
    13  receipt.  The tenant shall respond within ten days after receipt of such
    14  offer.  If the tenant declines the offer or fails to respond within such
    15  period, the owner may commence an action or proceeding for the  eviction
    16  of such tenant.
    17    §  4.  Subparagraph  (k)  of  paragraph  2 of subdivision e of section
    18  26-403 of the administrative code of the city of New York is REPEALED.
    19    § 5. Section 26-504.1 of the administrative code of the  city  of  New
    20  York,  as  amended  by section 35 of part B of chapter 97 of the laws of
    21  2011, is amended to read as follows:
    22    § 26-504.1 Exclusion of accommodations of high  income  renters.  Upon
    23  the issuance of an order by the division, "housing accommodations" shall
    24  not  include housing accommodations which[: (1)] are occupied by persons
    25  who have a total annual income, as defined in and subject to the limita-
    26  tions and process set forth in section  26-504.3  of  this  chapter,  in
    27  excess  of  the  deregulation  income  threshold,  as defined in section
    28  26-504.3 of this chapter, for each of the two preceding calendar years[;
    29  and (2) have a legal regulated monthly rent that equals or  exceeds  the
    30  deregulation  rent  threshold,  as  defined  in section 26-504.3 of this
    31  chapter]. Provided, however, that this  exclusion  shall  not  apply  to
    32  housing accommodations which became or become subject to this law (a) by
    33  virtue  of receiving tax benefits pursuant to section four hundred twen-
    34  ty-one-a or four hundred eighty-nine  of  the  real  property  tax  law,
    35  except  as  otherwise  provided  in subparagraph (i) of paragraph (f) of
    36  subdivision two of section four hundred twenty-one-a of the real proper-
    37  ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
    38  law.
    39    § 6. Section 26-504.2 of the administrative code of the  city  of  New
    40  York is REPEALED.
    41    §  7.  Section  26-504.3 of the administrative code of the city of New
    42  York, as amended by section 36 of part B of chapter 97 of  the  laws  of
    43  2011,  and  paragraph  3  of subdivision (a) as amended by section 16 of
    44  part A of chapter 20 of the laws of 2015, is amended to read as follows:
    45    § 26-504.3 High income rent deregulation. (a) 1. For purposes of  this
    46  section,  annual  income shall mean the federal adjusted gross income as
    47  reported on the New York state income tax return.  Total  annual  income
    48  means  the  sum  of  the  annual  incomes of all persons whose names are
    49  recited as the tenant or co-tenant on a lease  who  occupy  the  housing
    50  accommodation  and  all  other  persons that occupy the housing accommo-
    51  dation as their primary residence  on  other  than  a  temporary  basis,
    52  excluding  bona  fide  employees  of  such occupants residing therein in
    53  connection with such employment and excluding bona  fide  subtenants  in
    54  occupancy pursuant to the provisions of section two hundred twenty-six-b
    55  of  the  real property law. In the case where a housing accommodation is
    56  sublet, the annual income of the tenant  or  co-tenant  recited  on  the

        A. 5286                             7
     1  lease who will reoccupy the housing accommodation upon the expiration of
     2  the sublease shall be considered.
     3    2.  Deregulation  income  threshold means total annual income equal to
     4  one hundred seventy-five thousand dollars in each of the  two  preceding
     5  calendar years for proceedings commenced before July first, two thousand
     6  eleven.  For  proceedings commenced on or after July first, two thousand
     7  [eleven] eighteen, the deregulation income  threshold  means  the  total
     8  annual  income  equal  to [two hundred] one hundred twenty-five thousand
     9  dollars in each of the two preceding calendar years.
    10    [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
    11  proceedings  commenced  before  July  first,  two  thousand  eleven. For
    12  proceedings commenced on or after July first, two thousand  eleven,  the
    13  deregulation rent threshold means two thousand five hundred dollars. For
    14  proceedings  commenced on or after July first, two thousand fifteen, the
    15  deregulation rent threshold means two thousand  seven  hundred  dollars,
    16  provided,  however,  that  on  January  first, two thousand sixteen, and
    17  annually thereafter, such deregulation rent threshold shall be  adjusted
    18  by  the  same  percentage as the most recent one year renewal adjustment
    19  adopted by the relevant guidelines board.]
    20    (b) On or before the first day of May in each calendar year, the owner
    21  of each housing accommodation [for which the legal regulated rent equals
    22  or exceeds the deregulation rent threshold] may provide  the  tenant  or
    23  tenants  residing  therein with an income certification form prepared by
    24  the division of housing and community renewal on which  such  tenant  or
    25  tenants  shall  identify  all  persons referred to in subdivision (a) of
    26  this section and shall certify whether the total  annual  income  is  in
    27  excess of the deregulation income threshold in each of the two preceding
    28  calendar  years.  Such  income  certification  form shall state that the
    29  income level certified to by the tenant may be subject  to  verification
    30  by  the  department  of  taxation  and  finance  pursuant to section one
    31  hundred seventy-one-b of the tax law and shall not require disclosure of
    32  any income information other than whether the  aforementioned  threshold
    33  has  been  exceeded.  Such income certification form shall clearly state
    34  that: (i) [only tenants residing in housing accommodations which have  a
    35  legal  regulated  monthly  rent, that equals or exceeds the deregulation
    36  rent threshold are required to complete  the  certification  form;  (ii)
    37  that]  tenants  have protections available to them which are designed to
    38  prevent harassment; [(iii) that] and (ii) tenants are  not  required  to
    39  provide  any  information  regarding  their  income except that which is
    40  requested on the form and may contain such other information  the  divi-
    41  sion deems appropriate. The tenant or tenants shall return the completed
    42  certification  to  the  owner  within thirty days after service upon the
    43  tenant or tenants. In the event that the total annual income  as  certi-
    44  fied  is  in  excess of the deregulation income threshold in each of the
    45  two preceding calendar years, the owner may file the certification  with
    46  the  state  division  of housing and community renewal on or before June
    47  thirtieth of such year. Upon filing such certification  with  the  divi-
    48  sion,  the division shall, within thirty days after the filing, issue an
    49  order providing that such housing accommodation shall not be subject  to
    50  the provisions of this act upon the expiration of the existing lease.  A
    51  copy of such order shall be mailed by regular and certified mail, return
    52  receipt  requested, to the tenant or tenants and a copy thereof shall be
    53  mailed to the owner.
    54    (c) 1. In the event that the tenant or tenants either fail  to  return
    55  the  completed certification to the owner on or before the date required
    56  by subdivision (b) of this section or the  owner  disputes  the  certif-

        A. 5286                             8
     1  ication  returned  by the tenant or tenants, the owner may, on or before
     2  June thirtieth of such year, petition the state division of housing  and
     3  community  renewal  to  verify, pursuant to section one hundred seventy-
     4  one-b of the tax law, whether the total annual income exceeds the dereg-
     5  ulation  income  threshold  in each of the two preceding calendar years.
     6  Within twenty days after the filing of such request with  the  division,
     7  the  division shall notify the tenant or tenants named on the lease that
     8  such tenant or tenants must provide the division with  such  information
     9  as the division and the department of taxation and finance shall require
    10  to  verify  whether  the  total  annual  income exceeds the deregulation
    11  income threshold in each of the two preceding calendar years. The  divi-
    12  sion's  notification  shall require the tenant or tenants to provide the
    13  information to the division within  sixty  days  of  service  upon  such
    14  tenant  or  tenants  and shall include a warning in bold faced type that
    15  failure to respond will result in an order being issued by the  division
    16  providing  that  such  housing accommodation shall not be subject to the
    17  provisions of this law.
    18    2. If the department of taxation and finance determines that the total
    19  annual income is in excess of the deregulation income threshold in  each
    20  of  the  two  preceding calendar years, the division shall, on or before
    21  November fifteenth of such year, notify the owner  and  tenants  of  the
    22  results  of such verification. Both the owner and the tenants shall have
    23  thirty days within which to comment on such verification results. Within
    24  forty-five days after the expiration of the comment period, the division
    25  shall, where appropriate, issue an order  providing  that  such  housing
    26  accommodation  shall  not  be subject to the provisions of this law upon
    27  the expiration of the existing lease. A copy  of  such  order  shall  be
    28  mailed  by  regular and certified mail, return receipt requested, to the
    29  tenant or tenants and a copy thereof shall be sent to the owner.
    30    3. In the event the tenant or tenants fail to provide the  information
    31  required  pursuant  to  paragraph  one of this subdivision, the division
    32  shall issue, on or before December first of such year, an order  provid-
    33  ing  that  such  housing  accommodation  shall  not  be  subject  to the
    34  provisions of this law upon the expiration of the current lease. A  copy
    35  of  such  order  shall  be  mailed by regular and certified mail, return
    36  receipt requested, to the tenant or tenants and a copy thereof shall  be
    37  sent to the owner.
    38    4.  The  provisions  of the state freedom of information act shall not
    39  apply to any income information obtained by  the  division  pursuant  to
    40  this section.
    41    (d) This section shall apply only to section 26-504.1 of this chapter.
    42    (e)  Upon  receipt  of  such  order  of  deregulation pursuant to this
    43  section, an owner shall offer the housing accommodation subject to  such
    44  order  to  the  tenant at a rent not in excess of the market rent, which
    45  for the purposes of this section means a rent  obtainable  in  an  arm's
    46  length  transaction.  Such  rental  offer  shall be made by the owner in
    47  writing to the tenant by certified and regular mail and shall inform the
    48  tenant that such offer must be accepted in writing within  ten  days  of
    49  receipt.  The tenant shall respond within ten days after receipt of such
    50  offer.  If the tenant declines the offer or fails to respond within such
    51  period, the owner may commence an action or proceeding for the  eviction
    52  of such tenant.
    53    §  8. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
    54  ter 576 of the laws of 1974 constituting the emergency tenant protection
    55  act of nineteen seventy-four is REPEALED.

        A. 5286                             9
     1    § 9. Section 5-a of section 4 of chapter 576  of  the  laws  of  1974,
     2  constituting  the  emergency  tenant protection act of nineteen seventy-
     3  four, as amended by section 30 of part B of chapter 97 of  the  laws  of
     4  2011,  and  paragraph  3  of subdivision (a) as amended by section 13 of
     5  part A of chapter 20 of the laws of 2015, is amended to read as follows:
     6    §  5-a.  High  income  rent  deregulation. (a) 1. For purposes of this
     7  section, annual income shall mean the federal adjusted gross  income  as
     8  reported  on  the  New York state income tax return. Total annual income
     9  means the sum of the annual incomes  of  all  persons  whose  names  are
    10  recited  as  the  tenant  or co-tenant on a lease who occupy the housing
    11  accommodation and all other persons that  occupy  the  housing  accommo-
    12  dation  as  their  primary  residence  on  other than a temporary basis,
    13  excluding bona fide employees of  such  occupants  residing  therein  in
    14  connection  with  such  employment and excluding bona fide subtenants in
    15  occupancy pursuant to the provisions of section two hundred twenty-six-b
    16  of the real property law. In the case where a housing  accommodation  is
    17  sublet,  the  annual  income  of  the tenant or co-tenant recited on the
    18  lease who will reoccupy the housing accommodation upon the expiration of
    19  the sublease shall be considered.
    20    2. Deregulation income threshold means total annual  income  equal  to
    21  one  hundred  seventy-five thousand dollars in each of the two preceding
    22  calendar years for proceedings commenced before July first, two thousand
    23  eleven. For proceedings commenced on or after July first,  two  thousand
    24  [eleven]  eighteen,  the  deregulation  income threshold means the total
    25  annual income equal to [two hundred] one  hundred  twenty-five  thousand
    26  dollars in each of the two preceding calendar years.
    27    [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
    28  proceedings commenced  before  July  first,  two  thousand  eleven.  For
    29  proceedings  commenced  on or after July first, two thousand eleven, the
    30  deregulation rent threshold means two  thousand  five  hundred  dollars.
    31  For  proceedings commenced on or after July first, two thousand fifteen,
    32  the  deregulation  rent  threshold  means  two  thousand  seven  hundred
    33  dollars,  provided, however that on January 1, 2016, and annually there-
    34  after, the maximum legal regulated rent for this deregulation  threshold
    35  shall  be  adjusted  by  the same percentage as the most recent one year
    36  renewal adjustment adopted by the rent guidelines board.]
    37    (b) On or before the first day of May in each calendar year, the owner
    38  of each housing accommodation [for which  the  legal  regulated  monthly
    39  rent  equals or exceeds the deregulation rent threshold] may provide the
    40  tenant or tenants residing therein with  an  income  certification  form
    41  prepared  by the division of housing and community renewal on which such
    42  tenant or tenants shall identify all persons referred to in  subdivision
    43  (a) of this section and shall certify whether the total annual income is
    44  in  excess  of  the  deregulation  income  threshold  in each of the two
    45  preceding calendar years. Such income  certification  form  shall  state
    46  that  the  income  level  certified  to  by the tenant may be subject to
    47  verification by the department  of  taxation  and  finance  pursuant  to
    48  section  one hundred seventy-one-b of the tax law, and shall not require
    49  disclosure of any information  other  than  whether  the  aforementioned
    50  threshold has been exceeded. Such income certification form shall clear-
    51  ly  state  that:    (i) [only tenants residing in housing accommodations
    52  which had a legal regulated monthly rent  that  equals  or  exceeds  the
    53  deregulation  rent  threshold are required to complete the certification
    54  form; (ii) that] tenants have protections available to  them  which  are
    55  designed  to  prevent  harassment; [(iii) that] and (ii) tenants are not
    56  required to provide any information regarding their income  except  that

        A. 5286                            10
     1  which  is  requested  on the form and may contain such other information
     2  the division deems appropriate. The tenant or tenants shall  return  the
     3  completed  certification  to  the owner within thirty days after service
     4  upon the tenant or tenants. In the event that the total annual income as
     5  certified  is  in excess of the deregulation income threshold in each of
     6  the two preceding calendar years, the owner may file  the  certification
     7  with  the  state  division of housing and community renewal on or before
     8  June thirtieth of such year. Upon filing  such  certification  with  the
     9  division, the division shall, within thirty days after the filing, issue
    10  an  order providing that such housing accommodation shall not be subject
    11  to the provisions of this act upon the expiration of the existing lease.
    12  A copy of such order shall be mailed  by  regular  and  certified  mail,
    13  return  receipt  requested,  to the tenant or tenants and a copy thereof
    14  shall be mailed to the owner.
    15    (c) 1. In the event that the tenant or tenants either fail  to  return
    16  the  completed certification to the owner on or before the date required
    17  by subdivision (b) of this section or the  owner  disputes  the  certif-
    18  ication  returned  by the tenant or tenants, the owner may, on or before
    19  June thirtieth of such year, petition the state division of housing  and
    20  community  renewal  to  verify, pursuant to section one hundred seventy-
    21  one-b of the tax law, whether the total annual income exceeds the dereg-
    22  ulation income threshold in each of the two  preceding  calendar  years.
    23  Within  twenty  days after the filing of such request with the division,
    24  the division shall notify the tenant or  tenants  that  such  tenant  or
    25  tenants  named on the lease must provide the division with such informa-
    26  tion as the division and the department of taxation  and  finance  shall
    27  require  to  verify  whether the total annual income exceeds the deregu-
    28  lation income threshold in each of the two preceding calendar years. The
    29  division's notification shall require the tenant or tenants  to  provide
    30  the  information  to the division within sixty days of service upon such
    31  tenant or tenants and shall include a warning in bold  faced  type  that
    32  failure  to respond will result in an order being issued by the division
    33  providing that such housing accommodations shall not be subject  to  the
    34  provisions of this act.
    35    2. If the department of taxation and finance determines that the total
    36  annual  income is in excess of the deregulation income threshold in each
    37  of the two preceding calendar years, the division shall,  on  or  before
    38  November  fifteenth  of  such  year, notify the owner and tenants of the
    39  results of such verification. Both the owner and the tenants shall  have
    40  thirty days within which to comment on such verification results. Within
    41  forty-five days after the expiration of the comment period, the division
    42  shall,  where  appropriate,  issue  an order providing that such housing
    43  accommodation shall not be subject to the provisions of  this  act  upon
    44  expiration  of  the existing lease. A copy of such order shall be mailed
    45  by regular and certified mail, return receipt requested, to  the  tenant
    46  or tenants and a copy thereof shall be sent to the owner.
    47    3.  In the event the tenant or tenants fail to provide the information
    48  required pursuant to paragraph one of  this  subdivision,  the  division
    49  shall  issue, on or before December first of such year, an order provid-
    50  ing that  such  housing  accommodation  shall  not  be  subject  to  the
    51  provisions  of this act upon the expiration of the current lease. 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.

        A. 5286                            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 paragraph twelve of subdivision a
     5  of section five of this act.
     6    (e)  Upon  receipt  of  such  order  of  deregulation pursuant to this
     7  section, an owner shall offer the housing accommodation subject to  such
     8  order  to  the  tenant at a rent not in excess of the market rent, which
     9  for the purposes of this section means a rent  obtainable  in  an  arm's
    10  length  transaction.  Such  rental  offer  shall be made by the owner in
    11  writing to the tenant by certified and regular mail and shall inform the
    12  tenant that such offer must be accepted in writing within  ten  days  of
    13  receipt.  The tenant shall respond within ten days after receipt of such
    14  offer.  If the tenant declines the offer or fails to respond within such
    15  period, the owner may commence an action or proceeding for the  eviction
    16  of such tenant.
    17    §  10.  Paragraph  (i) of subdivision 2 of section 2 of chapter 274 of
    18  the laws of 1946, constituting the emergency housing rent  control  law,
    19  as  amended  by  chapter  576 of the laws of 1974, is amended to read as
    20  follows:
    21    (i) housing accommodations which  become  vacant  on  and  after  June
    22  sixteenth, two thousand nineteen, provided, however, that this exemption
    23  shall  not  apply or become effective where the commission determines or
    24  finds that the housing accommodations became vacant because the landlord
    25  or any person acting on his behalf, with intent to cause the  tenant  to
    26  vacate, engaged in any course of conduct (including, but not limited to,
    27  interruption  or  discontinuance of essential services) which interfered
    28  with or disturbed or was intended  to  interfere  with  or  disturb  the
    29  comfort, repose, peace or quiet of the tenant in his use or occupancy of
    30  the  housing accommodations; [and further provided that housing accommo-
    31  dations as to which a housing emergency has been  declared  pursuant  to
    32  the  emergency  tenant  protection act of nineteen seventy-four shall be
    33  subject to the provisions of such act for the duration of such  emergen-
    34  cy;] or
    35    §  11. The second undesignated paragraph of subdivision 5 of section 1
    36  of chapter 21 of the laws of  1962,  constituting  the  local  emergency
    37  housing  rent control act, as amended by chapter 82 of the laws of 2003,
    38  is amended to read as follows:
    39    Notwithstanding any local law  or  ordinance,  housing  accommodations
    40  which  [became]  become vacant on or after [July first, nineteen hundred
    41  seventy-one or which hereafter become vacant] June sixteenth, two  thou-
    42  sand  nineteen  shall  be  [subject  to  the provisions of the emergency
    43  tenant protection act of nineteen seventy-four] exempt  from  regulation
    44  and  control,  provided,  however, that this [provision] exemption shall
    45  not apply or become effective with  respect  to  housing  accommodations
    46  which,  by  local  law  or ordinance, are made directly subject to regu-
    47  lation and control by a city housing rent agency and such agency  deter-
    48  mines or finds that the housing accommodations became vacant because the
    49  landlord  or  any  person acting on his behalf, with intent to cause the
    50  tenant to vacate, engaged in any course of conduct  (including  but  not
    51  limited  to, interruption or discontinuance of essential services) which
    52  interfered with or disturbed  or  was  intended  to  interfere  with  or
    53  disturb  the comfort, repose, peace or quiet of the tenant in his use or
    54  occupancy of the housing accommodations.  The  removal  of  any  housing
    55  accommodation  from  regulation  and  control  of  rents pursuant to the
    56  vacancy exemption provided for in this paragraph shall not constitute or

        A. 5286                            12
     1  operate as a ground for the subjection to more stringent regulation  and
     2  control  of  any  housing accommodation in such property or in any other
     3  property owned by the same landlord, notwithstanding any prior agreement
     4  to  the  contrary by the landlord. The vacancy exemption provided for in
     5  this paragraph shall not arise with respect to any rented plot or parcel
     6  of land otherwise subject to the provisions of this act, by reason of  a
     7  transfer of title and possession occurring on or after July first, nine-
     8  teen  hundred  seventy-one  of a dwelling located on such plot or parcel
     9  and owned by the tenant where such transfer of title and  possession  is
    10  made  to  a  member  of  the tenant's immediate family provided that the
    11  member of the tenant's immediate family occupies the dwelling  with  the
    12  tenant  prior  to  the transfer of title and possession for a continuous
    13  period of two years.
    14    § 12. Paragraph (h) of subdivision 10 of section 1 of  chapter  21  of
    15  the  laws of 1962, constituting the local emergency housing rent control
    16  act, as amended by chapter 576 of the laws of 1974, is amended  to  read
    17  as follows:
    18    (h)  Any tenant who has vacated his housing accommodations because the
    19  landlord or any person acting on his behalf, with intent  to  cause  the
    20  tenant  to  vacate,  engaged in any course of conduct (including but not
    21  limited to, interruption or discontinuance of essential services)  which
    22  interfered  with  or  disturbed  or  was  intended  to interfere with or
    23  disturb the comfort, repose, peace or quiet of the tenant in his use  or
    24  occupancy  of  the  housing accommodations may, within ninety days after
    25  vacating, apply for a determination that the housing accommodations were
    26  vacated as a result of such conduct, and may, within one year after such
    27  determination, institute a civil action against the landlord  by  reason
    28  of  such  conduct. Application for such determination may be made to the
    29  [city housing rent agency with respect to housing accommodations  which,
    30  by  local  law or ordinance, are made directly subject to regulation and
    31  control by such agency. For all other housing  accommodadations  subject
    32  to  regulation and control pursuant to the New York city rent stabiliza-
    33  tion law of nineteen hundred sixty-nine, application for  such  determi-
    34  nation  may be made to the New York city conciliation and appeals board.
    35  For the purpose of making and enforcing any  determination  of  the  New
    36  York  city  conciliation  and  appeals  board  as  herein  provided, the
    37  provisions of sections seven, eight and ten, whenever they refer to  the
    38  city  housing rent agency, shall be deemed to refer to such board] state
    39  division of housing and community renewal. In such action  the  landlord
    40  shall  be  liable to the tenant for three times the damages sustained on
    41  account of such conduct plus reasonable attorney's  fees  and  costs  as
    42  determined  by  the  court. In addition to any other damages the cost of
    43  removal of property shall be a lawful measure of damages.
    44    § 13. Subdivision a of section 5 of section 4 of chapter  576  of  the
    45  laws  of 1974, constituting the emergency tenant protection act of nine-
    46  teen seventy-four, is amended by adding a new paragraph 3-a to  read  as
    47  follows:
    48    (3-a)  housing  accommodations  which  become  vacant on or after June
    49  sixteenth, two thousand nineteen, provided, however, that this exception
    50  shall not apply to or become effective with respect to housing  accommo-
    51  dations which the commissioner determines or finds became vacant because
    52  the  landlord  or any person acting on his or her behalf, with intent to
    53  cause the tenant to vacate, engaged in any course of conduct (including,
    54  but not limited to, interruption or discontinuance of required services)
    55  which interfered with or disturbed or was intended to interfere  in  his
    56  or her use or occupancy of the housing accommodations.

        A. 5286                            13
     1    §  14.  Section  26-504  of the administrative code of the city of New
     2  York is amended by adding a new subdivision d to read as follows:
     3    d.  Notwithstanding  any of the provisions of this section or title or
     4  any other provisions of law, this law shall not  apply  to  any  housing
     5  accommodation which becomes vacant on or after June sixteenth, two thou-
     6  sand  nineteen provided, however, that this exception shall not apply to
     7  or become effective with respect to  housing  accommodations  which  the
     8  commissioner  determines  or finds became vacant because the landlord or
     9  any person acting on his or her behalf, with intent to cause the  tenant
    10  to  vacate,  engaged in any course of conduct (including but not limited
    11  to, interruption or discontinuance of required services) which interfer-
    12  ed with or disturbed or was intended to interfere with  or  disturb  the
    13  comfort, repose, peace or quiet of the tenant in his or her use or occu-
    14  pancy of the housing accommodations.
    15    § 15. This act shall take effect immediately; provided that the amend-
    16  ments  to  section 26-403.1 of the city rent and rehabilitation law made
    17  by section three of this act shall remain in full force and effect  only
    18  as  long as the public emergency requiring the regulation and control of
    19  residential rents and evictions continues, as provided in subdivision  3
    20  of  section  1  of  the  local  emergency  housing rent control act; and
    21  provided that the amendments to sections 26-504.1, 26-504.3, and  26-504
    22  of  chapter  4 of title 26 of the administrative code of the city of New
    23  York made by sections five, seven and fourteen of this act respectively,
    24  shall expire on the same date as such law expires and shall  not  affect
    25  the expiration of such law as provided under section 26-520 of such law;
    26  and  provided that the amendments to sections 5-a and 5 of the emergency
    27  tenant protection act of nineteen seventy-four made by sections nine and
    28  thirteen of this act, respectively, shall expire on  the  same  date  as
    29  such  act  expires  and  shall  not affect the expiration of such act as
    30  provided in section 17 of chapter 576 of the laws of 1974; and  provided
    31  that  the amendments to sections 2-a and 2 of the emergency housing rent
    32  control law made by sections two and  ten  of  this  act,  respectively,
    33  shall  expire  on the same date as such law expires and shall not affect
    34  the expiration of such law as provided in subdivision 2 of section 1  of
    35  chapter 274 of the laws of 1946; and provided that the amendments to the
    36  local  emergency housing rent control act made by section eleven of this
    37  act shall remain in full force and effect only so  long  as  the  public
    38  emergency  requiring the regulation and control of residential rents and
    39  evictions continues, as provided in subdivision 3 of section  1  of  the
    40  local  emergency housing rent control act; and provided further that the
    41  amendments to paragraph (h) of subdivision 10 of section 1 of the  local
    42  emergency  housing  rent  control act made by section twelve of this act
    43  shall not affect the expiration of certain provisions of such  paragraph
    44  (h)  made  by  section  3  of  chapter 576 of the laws of 1974 and shall
    45  expire when such chapter 576 of the laws of 1974 expires.
feedback