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


Bill Title: Eliminates rent regulation protections for certain high income tenants; lowers the annual income for certain protections to $125,000.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2020-07-16 - held for consideration in housing [A05286 Detail]

Download: New_York-2019-A05286-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5286--A

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    February 8, 2019
                                       ___________

        Introduced  by  M. of A. KOLB, FITZPATRICK, MONTESANO -- Multi-Sponsored
          by -- M. of A.   BARCLAY, CROUCH -- read  once  and  referred  to  the
          Committee  on  Housing  --  recommitted to the Committee on Housing in
          accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee

        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; and to amend the
          emergency 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

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Chapter 274 of the laws of 1946, constituting the emergency
     2  housing rent control law, is amended by adding a new section 2-a to read
     3  as follows:
     4    §  2-a.  (a) 1. For purposes of this section, annual income shall mean
     5  the federal adjusted gross income as reported  on  the  New  York  state
     6  income  tax  return.  Total  annual  income  means the sum of the annual
     7  incomes of all persons who occupy the  housing  accommodation  as  their
     8  primary  residence  on other than a temporary basis, excluding bona fide
     9  employees of such occupants residing therein  in  connection  with  such
    10  employment  and  excluding bona fide subtenants in occupancy pursuant to
    11  the provisions of section two hundred twenty-six-b of the real  property
    12  law.  In  the  case  where a housing accommodation is sublet, the annual
    13  income of the sublessor shall be considered.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04471-02-0

        A. 5286--A                          2

     1    2. Deregulation income threshold means total annual  income  equal  to
     2  one  hundred  seventy-five thousand dollars in each of the two preceding
     3  calendar years for proceedings commenced before July first, two thousand
     4  eleven. For proceedings commenced on or after July first,  two  thousand
     5  twenty-one,  the  deregulation  income  threshold means the total annual
     6  income equal to one hundred twenty-five thousand dollars in each of  the
     7  two preceding calendar years.
     8    (b) On or before the first day of May in each calendar year, the owner
     9  of each housing accommodation may provide the tenant or tenants residing
    10  therein  with  an  income certification form prepared by the division of
    11  housing and community renewal on which  such  tenant  or  tenants  shall
    12  identify  all persons referred to in subdivision (a) of this section and
    13  shall certify whether the total annual income is in excess of the dereg-
    14  ulation income threshold in each of the two  preceding  calendar  years.
    15  Such  income certification form shall state that the income level certi-
    16  fied to by the tenant may be subject to verification by  the  department
    17  of taxation and finance pursuant to section one hundred seventy-one-b of
    18  the  tax  law and shall not require disclosure of any income information
    19  other than whether the aforementioned threshold has been exceeded.  Such
    20  income  certification  form  shall clearly state that:  (i) tenants have
    21  protections available to them which are designed to prevent  harassment;
    22  and  (ii)  tenants are not required to provide any information regarding
    23  their income except that which is requested on the form and may  contain
    24  such  other  information  the  division deems appropriate. The tenant or
    25  tenants shall return the completed certification  to  the  owner  within
    26  thirty  days after service upon the tenant or tenants. In the event that
    27  the total annual income as certified is in excess  of  the  deregulation
    28  income  threshold in each of the two preceding calendar years, the owner
    29  may file the certification with the state division of housing and commu-
    30  nity renewal on or before June thirtieth of such year. Upon filing  such
    31  certification  with the division, the division shall, within thirty days
    32  after the filing, issue an order of  deregulation  providing  that  such
    33  housing  accommodations  shall  not be subject to the provisions of this
    34  law as of the first day of June in the year next succeeding  the  filing
    35  of  the certification by the owner. A copy of such order shall be mailed
    36  by regular and certified mail, return receipt requested, to  the  tenant
    37  or tenants and a copy thereof shall be mailed to the owner.
    38    (c)  1.  In the event that the tenant or tenants either fail to return
    39  the completed certification to the owner on or before the date  required
    40  by  subdivision  (b)  of  this section or the owner disputes the certif-
    41  ication returned by the tenant or tenants, the owner may, on  or  before
    42  June  thirtieth of such year, petition the state division of housing and
    43  community renewal to verify, pursuant to section  one  hundred  seventy-
    44  one-b of the tax law, whether the total annual income exceeds the dereg-
    45  ulation  income  threshold  in each of the two preceding calendar years.
    46  Within twenty days after the filing of such request with  the  division,
    47  the  division  shall  notify  the  tenant or tenants that such tenant or
    48  tenants must provide the division with such information as the  division
    49  and  the  department  of  taxation  and  finance shall require to verify
    50  whether the total annual income exceeds the deregulation income  thresh-
    51  old  in each of the two preceding calendar years. The division's notifi-
    52  cation shall require the tenant or tenants to provide the information to
    53  the division within sixty days of service upon such  tenant  or  tenants
    54  and  shall  include  a warning in boldfaced type that failure to respond
    55  will result in an order of deregulation being issued by the division for
    56  such housing accommodation.

        A. 5286--A                          3

     1    2. If the department of taxation and finance determines that the total
     2  annual income is in excess of the deregulation income threshold in  each
     3  of  the  two  preceding calendar years, the division shall, on or before
     4  November fifteenth of such year, notify the owner  and  tenants  of  the
     5  results  of such verification. Both the owner and the tenants shall have
     6  thirty days within which to comment on such verification results.  With-
     7  in forty-five days after the expiration of the comment period, the divi-
     8  sion shall, where appropriate, issue an order of deregulation  providing
     9  that  such  housing accommodation shall not be subject to the provisions
    10  of this law as of the first day of March in the year next succeeding the
    11  filing of the owner's petition with the division. A copy of  such  order
    12  shall be mailed by regular and certified mail, return receipt requested,
    13  to the tenant or tenants and a copy thereof shall be sent to the owner.
    14    3.  In the event the tenant or tenants fail to provide the information
    15  required pursuant to paragraph one of  this  subdivision,  the  division
    16  shall  issue,  on  or  before  December  first of such year, an order of
    17  deregulation providing that such  housing  accommodation  shall  not  be
    18  subject  to  the  provisions of this law as of the first day of March in
    19  the year next succeeding the last day on which  the  tenant  or  tenants
    20  were  required  to provide the information required by such paragraph. A
    21  copy of such order shall be mailed by regular and certified mail, return
    22  receipt requested, to the tenant or tenants and a copy thereof shall  be
    23  sent to the owner.
    24    4.  The  provisions  of the state freedom of information act shall not
    25  apply to any income information obtained by  the  division  pursuant  to
    26  this section.
    27    (d)  This section shall apply only to paragraph (m) of subdivision two
    28  of section two of this law.
    29    (e) Upon receipt of  such  order  of  deregulation  pursuant  to  this
    30  section,  an owner shall offer the housing accommodation subject to such
    31  order to the tenant at a rent not in excess of the  market  rent,  which
    32  for  the  purposes  of  this section means a rent obtainable in an arm's
    33  length transaction. Such rental offer shall be  made  by  the  owner  in
    34  writing to the tenant by certified and regular mail and shall inform the
    35  tenant  that  such  offer must be accepted in writing within ten days of
    36  receipt. The tenant shall respond within ten days after receipt of  such
    37  offer.  If the tenant declines the offer or fails to respond within such
    38  period, the owner may commence an action or proceeding for the  eviction
    39  of such tenant.
    40    §  2.  The  administrative  code of the city of New York is amended by
    41  adding a new section 26-403.1 to read as follows:
    42    § 26-403.1 High income rent deregulation.  (a) 1. For purposes of this
    43  section, annual income shall mean the federal adjusted gross  income  as
    44  reported  on  the  New York state income tax return. Total annual income
    45  means the sum of the annual incomes of all persons who occupy the  hous-
    46  ing  accommodation  as their primary residence other than on a temporary
    47  basis, excluding bona fide employees of such occupants residing  therein
    48  in connection with such employment and excluding bona fide subtenants in
    49  occupancy pursuant to the provisions of section two hundred twenty-six-b
    50  of  the  real property law. In the case where a housing accommodation is
    51  sublet, the annual income of the sublessor shall be considered.
    52    2. Deregulation income threshold means total annual  income  equal  to
    53  one  hundred  twenty-five  thousand dollars in each of the two preceding
    54  calendar years for proceedings commenced on or  after  July  first,  two
    55  thousand twenty-one.

        A. 5286--A                          4

     1    (b) On or before the first day of May in each calendar year, the owner
     2  of each housing accommodation may provide the tenant or tenants residing
     3  therein  with  an  income certification form prepared by the division of
     4  housing and community renewal on which  such  tenant  or  tenants  shall
     5  identify  all persons referred to in subdivision (a) of this section and
     6  shall certify whether the total annual income is in excess of the dereg-
     7  ulation income threshold in each of the two  preceding  calendar  years.
     8  Such  income certification form shall state that the income level certi-
     9  fied to by the tenant may be subject to verification by  the  department
    10  of taxation and finance pursuant to section one hundred seventy-one-b of
    11  the  tax  law and shall not require disclosure of any income information
    12  other than whether the aforementioned threshold has been exceeded.  Such
    13  income  certification  form  shall clearly state that:  (i) tenants have
    14  protections available to them which are designed to prevent  harassment;
    15  and  (ii)  tenants are not required to provide any information regarding
    16  their income except that which is requested on the form and may  contain
    17  such  other  information  the  division deems appropriate. The tenant or
    18  tenants shall return the completed certification  to  the  owner  within
    19  thirty  days after service upon the tenant or tenants. In the event that
    20  the total annual income as certified is in excess  of  the  deregulation
    21  income  threshold in each of the two preceding calendar years, the owner
    22  may file the certification with the state division of housing and commu-
    23  nity renewal on or before June thirtieth of such year. Upon filing  such
    24  certification  with the division, the division shall, within thirty days
    25  after the filing, issue an order of  deregulation  providing  that  such
    26  housing  accommodations  shall  not be subject to the provisions of this
    27  law as of the first day of June in the year next succeeding  the  filing
    28  of  the certification by the owner. A copy of such order shall be mailed
    29  by regular and certified mail, return receipt requested, to  the  tenant
    30  or tenants and a copy thereof shall be mailed to the owner.
    31    (c)  1.  In the event that the tenant or tenants either fail to return
    32  the completed certification to the owner on or before the date  required
    33  by  subdivision  (b)  of  this section or the owner disputes the certif-
    34  ication returned by the tenant or tenants, the owner may, on  or  before
    35  June  thirtieth of such year, petition the state division of housing and
    36  community renewal to verify, pursuant to section  one  hundred  seventy-
    37  one-b of the tax law, whether the total annual income exceeds the dereg-
    38  ulation  income  threshold  in each of the two preceding calendar years.
    39  Within twenty days after the filing of such request with  the  division,
    40  the  division  shall  notify  the  tenant or tenants that such tenant or
    41  tenants must provide the division with such information as the  division
    42  and  the  department  of  taxation  and  finance shall require to verify
    43  whether the total annual income exceeds the deregulation income  thresh-
    44  old  in each of the two preceding calendar years. The division's notifi-
    45  cation shall require the tenant or tenants to provide the information to
    46  the division within sixty days of service upon such  tenant  or  tenants
    47  and  shall  include  a warning in boldfaced type that failure to respond
    48  will result in an order of deregulation being issued by the division for
    49  such housing accommodation.
    50    2. If the department of taxation and finance determines that the total
    51  annual income is in excess of the deregulation income threshold in  each
    52  of  the  two  preceding calendar years, the division shall, on or before
    53  November fifteenth of such year, notify the owner  and  tenants  of  the
    54  results  of such verification. Both the owner and the tenants shall have
    55  thirty days within which to comment on such verification results.  With-
    56  in forty-five days after the expiration of the comment period, the divi-

        A. 5286--A                          5

     1  sion shall, where appropriate, issue an order of deregulation  providing
     2  that  such  housing accommodation shall not be subject to the provisions
     3  of this law as of the first day of March in the year next succeeding the
     4  filing  of  the owner's petition with the division. A copy of such order
     5  shall be mailed by regular and certified mail, return receipt requested,
     6  to the tenant or tenants and a copy thereof shall be sent to the owner.
     7    3. In the event the tenant or tenants fail to provide the  information
     8  required  pursuant  to  paragraph  one of this subdivision, the division
     9  shall issue, on or before December first  of  such  year,  an  order  of
    10  deregulation  providing  that  such  housing  accommodation shall not be
    11  subject to the provisions of this law as of the first day  of  March  in
    12  the  year  next  succeeding  the last day on which the tenant or tenants
    13  were required to provide the information required by such  paragraph.  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  sent to the owner.
    17    4. The provisions of the state freedom of information  act  shall  not
    18  apply  to  any  income  information obtained by the division pursuant to
    19  this section.
    20    (d) This section shall apply only to subparagraph j of  paragraph  two
    21  of subdivision e of section 26-403 of this chapter.
    22    (e)  Upon  receipt  of  such  order  of  deregulation pursuant to this
    23  section, an owner shall offer the housing accommodation subject to  such
    24  order  to  the  tenant at a rent not in excess of the market rent, which
    25  for the purposes of this section means a rent  obtainable  in  an  arm's
    26  length  transaction.  Such  rental  offer  shall be made by the owner in
    27  writing to the tenant by certified and regular mail and shall inform the
    28  tenant that such offer must be accepted in writing within  ten  days  of
    29  receipt.  The tenant shall respond within ten days after receipt of such
    30  offer. If the tenant declines the offer or fails to respond within  such
    31  period,  the owner may commence an action or proceeding for the eviction
    32  of such tenant.
    33    § 3.  The administrative code of the city of New York  is  amended  by
    34  adding a new section 26-504.1 to read as follows:
    35    §  26-504.1  Exclusion  of accommodations of high income renters. Upon
    36  the issuance of an order  by  the  division  of  housing  and  community
    37  renewal,  "housing  accommodations"  shall  not include housing accommo-
    38  dations which are occupied by persons who have a total annual income, as
    39  defined in and subject to the  limitations  and  process  set  forth  in
    40  section  26-504.3  of this chapter, in excess of the deregulation income
    41  threshold, as defined in section 26-504.3 of this chapter, for  each  of
    42  the two preceding calendar years. Provided, however, that this exclusion
    43  shall not apply to housing accommodations which became or become subject
    44  to  this law (a) by virtue of receiving tax benefits pursuant to section
    45  four hundred twenty-one-a or four hundred eighty-nine of the real  prop-
    46  erty  tax law, except as otherwise provided in subparagraph (i) of para-
    47  graph (f) of subdivision two of section four hundred twenty-one-a of the
    48  real property tax law, or (b) by virtue of article seven-C of the multi-
    49  ple dwelling law.
    50    § 4. The administrative code of the city of New  York  is  amended  by
    51  adding a new section 26-504.3 to read as follows:
    52    § 26-504.3 High income rent deregulation.  (a) 1. For purposes of this
    53  section,  annual  income shall mean the federal adjusted gross income as
    54  reported on the New York state income tax return.  Total  annual  income
    55  means  the  sum  of  the  annual  incomes of all persons whose names are
    56  recited as the tenant or co-tenant on a lease  who  occupy  the  housing

        A. 5286--A                          6

     1  accommodation  and  all  other  persons that occupy the housing accommo-
     2  dation as their primary residence  on  other  than  a  temporary  basis,
     3  excluding  bona  fide  employees  of  such occupants residing therein in
     4  connection  with  such  employment and excluding bona fide subtenants in
     5  occupancy pursuant to the provisions of section two hundred twenty-six-b
     6  of the real property law. In the case where a housing  accommodation  is
     7  sublet,  the  annual  income  of  the tenant or co-tenant recited on the
     8  lease who will reoccupy the housing accommodation upon the expiration of
     9  the sublease shall be considered.
    10    2. Deregulation income threshold means total annual  income  equal  to
    11  one  hundred  twenty-five  thousand dollars in each of the two preceding
    12  calendar years for proceedings commenced on or  after  July  first,  two
    13  thousand twenty-one.
    14    (b) On or before the first day of May in each calendar year, the owner
    15  of each housing accommodation may provide the tenant or tenants residing
    16  therein  with  an  income certification form prepared by the division of
    17  housing and community renewal on which  such  tenant  or  tenants  shall
    18  identify  all persons referred to in subdivision (a) of this section and
    19  shall certify whether the total annual income is in excess of the dereg-
    20  ulation income threshold in each of the two  preceding  calendar  years.
    21  Such  income certification form shall state that the income level certi-
    22  fied to by the tenant may be subject to verification by  the  department
    23  of taxation and finance pursuant to section one hundred seventy-one-b of
    24  the  tax  law and shall not require disclosure of any income information
    25  other than whether the aforementioned threshold has been exceeded.  Such
    26  income  certification  form  shall clearly state that:  (i) tenants have
    27  protections available to them which are designed to prevent  harassment;
    28  and  (ii)  tenants are not required to provide any information regarding
    29  their income except that which is requested on the form and may  contain
    30  such  other  information  the  division deems appropriate. The tenant or
    31  tenants shall return the completed certification  to  the  owner  within
    32  thirty  days after service upon the tenant or tenants. In the event that
    33  the total annual income as certified is in excess  of  the  deregulation
    34  income  threshold in each of the two preceding calendar years, the owner
    35  may file the certification with the state division of housing and commu-
    36  nity renewal on or before June thirtieth of such year. Upon filing  such
    37  certification  with the division, the division shall, within thirty days
    38  after the filing, issue an order providing that  such  housing  accommo-
    39  dation shall not be subject to the provisions of this act upon the expi-
    40  ration  of  the  existing lease. A copy of such order shall be mailed by
    41  regular and certified mail, return receipt requested, to the  tenant  or
    42  tenants and a copy thereof shall be 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 annual income exceeds the dereg-
    50  ulation  income  threshold  in each of the two preceding calendar years.
    51  Within twenty days after the filing of such request with  the  division,
    52  the  division shall notify the tenant or tenants named on the lease that
    53  such tenant or tenants must provide the division with  such  information
    54  as the division and the department of taxation and finance shall require
    55  to  verify  whether  the  total  annual  income exceeds the deregulation
    56  income threshold in each of the two preceding calendar years. The  divi-

        A. 5286--A                          7

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

     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 twenty-five thousand dollars in each of  the  two  preceding
     5  calendar  years  for  proceedings  commenced on or after July first, two
     6  thousand twenty-one.
     7    (b) On or before the first day of May in each calendar year, the owner
     8  of each housing accommodation may provide the tenant or tenants residing
     9  therein with an income certification form prepared by  the  division  of
    10  housing  and  community  renewal  on  which such tenant or tenants shall
    11  identify all persons referred to in subdivision (a) of this section  and
    12  shall certify whether the total annual income is in excess of the dereg-
    13  ulation  income  threshold  in each of the two preceding calendar years.
    14  Such income certification form shall state that the income level  certi-
    15  fied  to  by the tenant may be subject to verification by the department
    16  of taxation and finance pursuant to section one hundred seventy-one-b of
    17  the tax law, and shall not require disclosure of any  information  other
    18  than whether the aforementioned threshold has been exceeded. Such income
    19  certification   form   shall   clearly  state  that:  (i)  tenants  have
    20  protections available to them which are designed to prevent  harassment;
    21  and  (ii)  tenants are not required to provide any information regarding
    22  their income except that which is requested on the form and may  contain
    23  such  other  information  the  division deems appropriate. The tenant or
    24  tenants shall return the completed certification  to  the  owner  within
    25  thirty  days after service upon the tenant or tenants. In the event that
    26  the total annual income as certified is in excess  of  the  deregulation
    27  income  threshold in each of the two preceding calendar years, the owner
    28  may file the certification with the state division of housing and commu-
    29  nity renewal on or before June thirtieth of such year. Upon filing  such
    30  certification  with the division, the division shall, within thirty days
    31  after the filing, issue an order providing that  such  housing  accommo-
    32  dation shall not be subject to the provisions of this act upon the expi-
    33  ration  of  the  existing lease. A copy of such order shall be mailed by
    34  regular and certified mail, return receipt requested, to the  tenant  or
    35  tenants and a copy thereof shall be mailed to the owner.
    36    (c)  1.  In the event that the tenant or tenants either fail to return
    37  the completed certification to the owner on or before the date  required
    38  by  subdivision  (b)  of  this section or the owner disputes the certif-
    39  ication returned by the tenant or tenants, the owner may, on  or  before
    40  June  thirtieth of such year, petition the state division of housing and
    41  community renewal to verify, pursuant to section  one  hundred  seventy-
    42  one-b of the tax law, whether the total annual income exceeds the dereg-
    43  ulation  income  threshold  in each of the two preceding calendar years.
    44  Within twenty days after the filing of such request with  the  division,
    45  the  division  shall  notify  the  tenant or tenants that such tenant or
    46  tenants named on the lease must provide the division with such  informa-
    47  tion  as  the  division and the department of taxation and finance shall
    48  require to verify whether the total annual income  exceeds  the  deregu-
    49  lation income threshold in each of the two preceding calendar years. The
    50  division's  notification  shall require the tenant or tenants to provide
    51  the information to the division within sixty days of service  upon  such
    52  tenant  or  tenants  and  shall include a warning in boldfaced type that
    53  failure to respond will result in an order being issued by the  division
    54  providing  that  such housing accommodations shall not be subject to the
    55  provisions of this act.

        A. 5286--A                          9

     1    2. If the department of taxation and finance determines that the total
     2  annual income is in excess of the deregulation income threshold in  each
     3  of  the  two  preceding calendar years, the division shall, on or before
     4  November fifteenth of such year, notify the owner  and  tenants  of  the
     5  results  of such verification. Both the owner and the tenants shall have
     6  thirty days within which to comment on such verification results.  With-
     7  in forty-five days after the expiration of the comment period, the divi-
     8  sion shall, where appropriate, issue an order providing that such  hous-
     9  ing  accommodation  shall  not  be subject to the provisions of this act
    10  upon expiration of the existing lease. A copy of  such  order  shall  be
    11  mailed  by  regular and certified mail, return receipt requested, to the
    12  tenant or tenants and a copy thereof shall be sent to the owner.
    13    3. In the event the tenant or tenants fail to provide the  information
    14  required  pursuant  to  paragraph  one of this subdivision, the division
    15  shall issue, on or before December first of such year, an order  provid-
    16  ing  that  such  housing  accommodation  shall  not  be  subject  to the
    17  provisions of this act upon the expiration of the current lease. A  copy
    18  of  such  order  shall  be  mailed by regular and certified mail, return
    19  receipt requested, to the tenant or tenants and a copy thereof shall  be
    20  sent to the owner.
    21    4.  The  provisions  of the state freedom of information act shall not
    22  apply to any income information obtained by  the  division  pursuant  to
    23  this section.
    24    (d) This section shall apply only to paragraph twelve of subdivision a
    25  of section five of this act.
    26    (e)  Upon  receipt  of  such  order  of  deregulation pursuant to this
    27  section, an owner shall offer the housing accommodation subject to  such
    28  order  to  the  tenant at a rent not in excess of the market rent, which
    29  for the purposes of this section means a rent  obtainable  in  an  arm's
    30  length  transaction.  Such  rental  offer  shall be made by the owner in
    31  writing to the tenant by certified and regular mail and shall inform the
    32  tenant that such offer must be accepted in writing within  ten  days  of
    33  receipt.  The tenant shall respond within ten days after receipt of such
    34  offer. If the tenant declines the offer or fails to respond within  such
    35  period,  the owner may commence an action or proceeding for the eviction
    36  of such tenant.
    37    § 6. Paragraph (i) of subdivision 2 of section 2 of chapter 274 of the
    38  laws of 1946, constituting the emergency housing rent  control  law,  as
    39  amended  by  chapter  576  of  the  laws  of 1974, is amended to read as
    40  follows:
    41    (i) housing accommodations which  become  vacant  on  and  after  June
    42  sixteenth,   two  thousand  twenty-one,  provided,  however,  that  this
    43  exemption shall not apply  or  become  effective  where  the  commission
    44  determines  or  finds  that  the  housing  accommodations  became vacant
    45  because the landlord or any person acting on his behalf, with intent  to
    46  cause the tenant to vacate, engaged in any course of conduct (including,
    47  but   not  limited  to,  interruption  or  discontinuance  of  essential
    48  services) which interfered with or disturbed or was intended  to  inter-
    49  fere  with  or disturb the comfort, repose, peace or quiet of the tenant
    50  in his use or occupancy of  the  housing  accommodations;  [and  further
    51  provided that housing accommodations as to which a housing emergency has
    52  been  declared  pursuant to the emergency tenant protection act of nine-
    53  teen seventy-four shall be subject to the provisions of such act for the
    54  duration of such emergency;] or
    55    § 7. The second undesignated paragraph of subdivision 5 of  section  1
    56  of  chapter  21  of  the  laws of 1962, constituting the local emergency

        A. 5286--A                         10

     1  housing rent control act, as amended by chapter 82 of the laws of  2003,
     2  is amended to read as follows:
     3    Notwithstanding  any  local  law  or ordinance, housing accommodations
     4  which [became] become vacant on or after [July first,  nineteen  hundred
     5  seventy-one  or which hereafter become vacant] June sixteenth, two thou-
     6  sand twenty-one shall be [subject to the  provisions  of  the  emergency
     7  tenant  protection  act of nineteen seventy-four] exempt from regulation
     8  and control, provided, however, that this  [provision]  exemption  shall
     9  not  apply  or  become  effective with respect to housing accommodations
    10  which, by local law or ordinance, are made  directly  subject  to  regu-
    11  lation  and control by a city housing rent agency and such agency deter-
    12  mines or finds that the housing accommodations became vacant because the
    13  landlord or any person acting on his behalf, with intent  to  cause  the
    14  tenant  to  vacate,  engaged in any course of conduct (including but not
    15  limited to, interruption or discontinuance of essential services)  which
    16  interfered  with  or  disturbed  or  was  intended  to interfere with or
    17  disturb the comfort, repose, peace or quiet of the tenant in his use  or
    18  occupancy  of  the  housing  accommodations.  The removal of any housing
    19  accommodation from regulation and  control  of  rents  pursuant  to  the
    20  vacancy exemption provided for in this paragraph shall not constitute or
    21  operate  as a ground for the subjection to more stringent regulation and
    22  control of any housing accommodation in such property or  in  any  other
    23  property owned by the same landlord, notwithstanding any prior agreement
    24  to  the  contrary by the landlord. The vacancy exemption provided for in
    25  this paragraph shall not arise with respect to any rented plot or parcel
    26  of land otherwise subject to the provisions of this act, by reason of  a
    27  transfer of title and possession occurring on or after July first, nine-
    28  teen  hundred  seventy-one  of a dwelling located on such plot or parcel
    29  and owned by the tenant where such transfer of title and  possession  is
    30  made  to  a  member  of  the tenant's immediate family provided that the
    31  member of the tenant's immediate family occupies the dwelling  with  the
    32  tenant  prior  to  the transfer of title and possession for a continuous
    33  period of two years.
    34    § 8. Paragraph (h) of subdivision 10 of section 1 of chapter 21 of the
    35  laws of 1962, constituting the local emergency housing rent control act,
    36  as amended by chapter 576 of the laws of 1974, is  amended  to  read  as
    37  follows:
    38    (h)  Any tenant who has vacated his housing accommodations because the
    39  landlord or any person acting on his behalf, with intent  to  cause  the
    40  tenant  to  vacate,  engaged in any course of conduct (including but not
    41  limited to, interruption or discontinuance of essential services)  which
    42  interfered  with  or  disturbed  or  was  intended  to interfere with or
    43  disturb the comfort, repose, peace or quiet of the tenant in his use  or
    44  occupancy  of  the  housing accommodations may, within ninety days after
    45  vacating, apply for a determination that the housing accommodations were
    46  vacated as a result of such conduct, and may, within one year after such
    47  determination, institute a civil action against the landlord  by  reason
    48  of  such  conduct. Application for such determination may be made to the
    49  [city housing rent agency with respect to housing accommodations  which,
    50  by  local  law or ordinance, are made directly subject to regulation and
    51  control by such agency. For all other housing [accommodadations]  accom-
    52  modations  subject  to  regulation  and control pursuant to the New York
    53  city rent stabilization law of nineteen hundred sixty-nine,  application
    54  for such determination may be made to the New York city conciliation and
    55  appeals  board.    For  the purpose of making and enforcing any determi-
    56  nation of the New York city conciliation and  appeals  board  as  herein

        A. 5286--A                         11

     1  provided, the provisions of sections seven, eight and ten, whenever they
     2  refer  to the city housing rent agency, shall be deemed to refer to such
     3  board] state division of housing and community renewal. In  such  action
     4  the  landlord  shall be liable to the tenant for three times the damages
     5  sustained on account of such conduct plus reasonable attorney's fees and
     6  costs as determined by the court. In addition to any other  damages  the
     7  cost of removal of property shall be a lawful measure of damages.
     8    §  9.  Subdivision  a  of section 5 of section 4 of chapter 576 of the
     9  laws of 1974, constituting the emergency tenant protection act of  nine-
    10  teen  seventy-four,  is amended by adding a new paragraph 3-a to read as
    11  follows:
    12    (3-a) housing accommodations which become  vacant  on  or  after  June
    13  sixteenth,  two thousand twenty-one, provided, however, that this excep-
    14  tion shall not apply to or become  effective  with  respect  to  housing
    15  accommodations  which the commissioner determines or finds became vacant
    16  because the landlord or any person acting on his  or  her  behalf,  with
    17  intent  to  cause the tenant to vacate, engaged in any course of conduct
    18  (including, but  not  limited  to,  interruption  or  discontinuance  of
    19  required services) which interfered with or disturbed or was intended to
    20  interfere in his or her use or occupancy of the housing accommodations.
    21    §  10.  Section  26-504  of the administrative code of the city of New
    22  York is amended by adding a new subdivision d to read as follows:
    23    d. Notwithstanding any of the provisions of this section or  title  or
    24  any  other  provisions  of  law, this law shall not apply to any housing
    25  accommodation which becomes vacant on or after June sixteenth, two thou-
    26  sand twenty-one provided, however, that this exception shall  not  apply
    27  to  or become effective with respect to housing accommodations which the
    28  commissioner determines or finds became vacant because the  landlord  or
    29  any  person acting on his or her behalf, with intent to cause the tenant
    30  to vacate, engaged in any course of conduct (including but  not  limited
    31  to, interruption or discontinuance of required services) which interfer-
    32  ed  with  or  disturbed or was intended to interfere with or disturb the
    33  comfort, repose, peace or quiet of the tenant in his or her use or occu-
    34  pancy of the housing accommodations.
    35    § 11. This act shall take effect immediately;  provided  that  section
    36  26-403.1 of the city rent and rehabilitation law as added by section two
    37  of  this  act  shall remain in full force and effect only as long as the
    38  public emergency requiring the regulation  and  control  of  residential
    39  rents and evictions continues, as provided in subdivision 3 of section 1
    40  of  the  local  emergency  housing  rent  control act; and provided that
    41  sections 26-504.1 and 26-504.3 of the administrative code of the city of
    42  New York as added by sections three and four of this act, and the amend-
    43  ments to section 26-504 of chapter 4 of title 26 of  the  administrative
    44  code  of  the  city  of  New York made by section ten of this act, shall
    45  expire on the same date as such law expires and  shall  not  affect  the
    46  expiration of such law as provided under section 26-520 of such law; and
    47  provided that the amendments to the local emergency housing rent control
    48  act  made  by  sections seven and eight of this act shall remain in full
    49  force and effect only so long as  the  public  emergency  requiring  the
    50  regulation  and control of residential rents and evictions continues, as
    51  provided in subdivision 3 of section 1 of the  local  emergency  housing
    52  rent control act.
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