S T A T E O F N E W Y O R K
________________________________________________________________________
5744
2009-2010 Regular Sessions
I N A S S E M B L Y
February 19, 2009
___________
Introduced by M. of A. V. LOPEZ, KELLNER -- read once and referred to
the Committee on Housing
AN ACT to amend the administrative code of the city of New York, in
relation to maximum rent calculation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraphs (j) and (k) of paragraph 2 of subdivision e
of section 26-403 of the administrative code of the city of New York,
subparagraph (j) as amended by chapter 116 of the laws of 1997 and
subparagraph (k) as amended by chapter 82 of the laws of 2003, are
amended to read as follows:
(j) Upon the issuance of an order of decontrol by the division, hous-
ing accommodations which: (1) are occupied by persons who have a total
annual income in excess of one hundred seventy-five thousand dollars per
annum in each of the two preceding calendar years, as defined in and
subject to the limitations and process set forth in section 26-403.1 of
this chapter; and (2) have a maximum MONTHLY rent [of two thousand
dollars or more per month] EQUAL TO OR GREATER THAN THE GREATER OF TWO
THOUSAND DOLLARS OR THE "ADJUSTED SUM" DETERMINED AS FOLLOWS:
ON OR BEFORE THE FIRST OF NOVEMBER TWO THOUSAND NINE AND EACH NOVEMBER
FIRST THEREAFTER THE COMMISSIONER SHALL DETERMINE THE ADJUSTED SUM WHICH
SHALL BE TWO THOUSAND DOLLARS, INCREASED BY THE PERCENTAGE DIFFERENCE
BETWEEN THE MONTHLY CONSUMER PRICE INDEX FOR RENT FOR ALL URBAN CONSUM-
ERS (CPI-U), THE RENT COMPONENT FOR NEW YORK CITY, AS PUBLISHED BY THE
UNITED STATES DEPARTMENT OF LABOR, BUREAU OF STATISTICS FOR THE MONTH OF
JULY NINETEEN HUNDRED NINETY-THREE AND SUCH INDEX FOR THE MONTH OF JULY
IN THE SAME YEAR AS THE AFOREMENTIONED NOVEMBER FIRST. EACH ADJUSTED SUM
SHALL BE EFFECTIVE FROM THE FIRST DAY OF JANUARY UNTIL THE THIRTY-FIRST
DAY OF DECEMBER OF THE YEAR IMMEDIATELY FOLLOWING THE AFOREMENTIONED
FIRST OF NOVEMBER. Provided however, that this exclusion shall not
apply to housing accommodations which became or become subject to this
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08840-01-9
A. 5744 2
law by virtue of receiving tax benefits pursuant to section four hundred
eighty-nine of the real property tax law.
(k) Any housing accommodation which becomes vacant on or after April
first, nineteen hundred ninety-seven and where at the time the tenant
vacated such housing accommodation the maximum MONTHLY rent was EQUAL TO
OR GREATER THAN THE GREATER OF two thousand dollars or [more per month,
or any housing accommodation] THE ADJUSTED SUM AS DETERMINED PURSUANT TO
SUBPARAGRAPH (J) OF THIS PARAGRAPH, which is or becomes vacant on or
after the effective date of the rent regulation reform act of 1997 [with
a maximum rent of two thousand dollars or more per month]. This exclu-
sion shall apply regardless of whether the next tenant in occupancy or
any subsequent tenant in occupancy actually is charged or pays less than
two thousand dollars a month. Provided however, that this exclusion
shall not apply to housing accommodations which became or become subject
to this law by virtue of receiving tax benefits pursuant to section four
hundred eighty-nine of the real property tax law. This subparagraph
shall not apply, however, to or become effective with respect to housing
accommodations which the commissioner determines or finds that the land-
lord or any person acting on his or her behalf, with intent to cause the
tenant to vacate, has engaged in any course of conduct (including, but
not limited to, interruption or discontinuance of required services)
which interfered with or disturbed or was intended to interfere with or
disturb the comfort, repose, peace or quiet of the tenant in his or her
use or occupancy of the housing accommodations and in connection with
such course of conduct, any other general enforcement provision of this
law shall also apply.
S 2. Subdivision (b) of section 26-403.1 of the administrative code of
the city of New York, as amended by chapter 116 of the laws of 1997, is
amended to read as follows:
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the MONTHLY maximum rent is [two
thousand dollars or more per month] EQUAL TO OR GREATER THAN THE GREATER
OF TWO THOUSAND DOLLARS OR THE ADJUSTED SUM AS DETERMINED PURSUANT TO
SUBPARAGRAPH (J) OF PARAGRAPH TWO OF SUBDIVISION E OF SECTION 26-403 OF
THIS CHAPTER, may provide the tenant or tenants residing therein with an
income certification form prepared by the division of housing and commu-
nity renewal on which such tenant or tenants shall identify all persons
referred to in subdivision (a) of this section and shall certify whether
the total annual income is in excess of one hundred seventy-five thou-
sand dollars in each of the two preceding calendar years. Such income
certification form shall state that the income level certified to by the
tenant may be subject to verification by the department of taxation and
finance pursuant to section one hundred seventy-one-b of the tax law and
shall not require disclosure of any income information other than wheth-
er the aforementioned threshold has been exceeded. Such income certif-
ication form shall clearly state that: (i) only tenants residing in
housing accommodations which have a MONTHLY maximum rent [of two thou-
sand dollars or more per month] EQUAL TO OR GREATER THAN THE GREATER OF
TWO THOUSAND DOLLARS OR THE ADJUSTED SUM AS DETERMINED PURSUANT TO
SUBPARAGRAPH (J) OF PARAGRAPH TWO OF SUBDIVISION E OF SECTION 26-403 OF
THIS CHAPTER, are required to complete the certification form; (ii) that
tenants have protections available to them which are designed to prevent
harassment; (iii) that tenants are not required to provide any informa-
tion regarding their income except that which is requested on the form
and may contain such other information the division deems appropriate.
The tenant or tenants shall return the completed certification to the
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owner within thirty days after service upon the tenant or tenants. In
the event that the total annual income as certified is in excess of one
hundred seventy-five thousand dollars in each such year, the owner may
file the certification with the state division of housing and community
renewal on or before June thirtieth of such year. Upon filing such
certification with the division, the division shall, within thirty days
after the filing, issue an order of decontrol providing that such hous-
ing accommodations shall not be subject to the provisions of this law as
of the first day of June in the year next succeeding the filing of the
certification by the owner. A copy of such order shall be mailed by
regular and certified mail, return receipt requested, to the tenant or
tenants and a copy thereof shall be mailed to the owner.
S 3. Section 26-504.1 of the administrative code of the city of New
York, as amended by chapter 116 of the laws of 1997, is amended to read
as follows:
S 26-504.1 Exclusion of accommodations of high income renters. Upon
the issuance of an order by the division, "housing accommodations" shall
not include housing accommodations which: (1) are occupied by persons
who have a total annual income in excess of one hundred seventy-five
thousand dollars per annum for each of the two preceding calendar years,
as defined in and subject to the limitations and process set forth in
section 26-504.3 of this chapter; and (2) have a legal MONTHLY regulated
rent [of two thousand dollars or more per month] EQUAL TO OR GREATER
THAN THE GREATER OF TWO THOUSAND DOLLARS OR THE "ADJUSTED SUM" DETER-
MINED AS FOLLOWS:
ON OR BEFORE THE FIRST OF NOVEMBER TWO THOUSAND NINE AND EACH NOVEMBER
FIRST THEREAFTER THE COMMISSIONER SHALL DETERMINE THE ADJUSTED SUM WHICH
SHALL BE TWO THOUSAND DOLLARS, INCREASED BY THE PERCENTAGE DIFFERENCE
BETWEEN THE MONTHLY CONSUMER PRICE INDEX FOR RENT FOR ALL URBAN CONSUM-
ERS (CPI-U), THE RENT COMPONENT FOR NEW YORK CITY, AS PUBLISHED BY THE
UNITED STATES DEPARTMENT OF LABOR, BUREAU OF STATISTICS FOR THE MONTH OF
JULY NINETEEN HUNDRED NINETY-THREE AND SUCH INDEX FOR THE MONTH OF JULY
IN THE SAME YEAR AS THE AFOREMENTIONED NOVEMBER FIRST. EACH ADJUSTED
SUM SHALL BE EFFECTIVE FROM THE FIRST DAY OF JANUARY UNTIL THE
THIRTY-FIRST DAY OF DECEMBER OF THE YEAR IMMEDIATELY FOLLOWING THE
AFOREMENTIONED FIRST OF NOVEMBER. Provided, however, that this exclu-
sion shall not apply to housing accommodations which became or become
subject to this law (a) by virtue of receiving tax benefits pursuant to
section four hundred twenty-one-a or four hundred eighty-nine of the
real property tax law, except as otherwise provided in subparagraph (i)
of paragraph (f) of subdivision two of section four hundred twenty-one-a
of the real property tax law, or (b) by virtue of article seven-C of the
multiple dwelling law.
S 4. Section 26-504.2 of the administrative code of the city of New
York, as amended by chapter 116 of the laws of 1997, subdivision a as
amended by chapter 82 of the laws of 2003 and subdivision b as added by
local law number 12 of the city of New York for the year 2000, is
amended to read as follows:
S 26-504.2 Exclusion of high rent accommodations. a. "Housing accom-
modations" shall not include any housing accommodation which becomes
vacant on or after April first, nineteen hundred ninety-seven and where
at the time the tenant vacated such housing accommodation the MONTHLY
legal regulated rent was [two thousand dollars or more per month, or any
housing accommodation] EQUAL TO OR GREATER THAN THE GREATER OF TWO THOU-
SAND DOLLARS OR THE ADJUSTED SUM DETERMINED PURSUANT TO SECTION 26-504.1
OF THIS CHAPTER, which is or becomes vacant on or after the effective
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date of the rent regulation reform act of 1997 [with a legal regulated
rent of two thousand dollars or more per month]. This exclusion shall
apply regardless of whether the next tenant in occupancy or any subse-
quent tenant in occupancy actually is charged or pays less than two
thousand dollars a month. Provided however, that this exclusion shall
not apply to housing accommodations which became or become subject to
this law (a) by virtue of receiving tax benefits pursuant to section
four hundred twenty-one-a or four hundred eighty-nine of the real prop-
erty tax law, except as otherwise provided in subparagraph (i) of para-
graph (f) of subdivision two of section four hundred twenty-one-a of the
real property tax law, or (b) by virtue of article seven-C of the multi-
ple dwelling law. This section shall not apply, however, to or become
effective with respect to housing accommodations which the commissioner
determines or finds that the landlord or any person acting on his or her
behalf, with intent to cause the tenant to vacate, engaged in any course
of conduct (including, but not limited to, interruption or discontin-
uance of required services) which interfered with or disturbed or was
intended to interfere with or disturb the comfort, repose, peace or
quiet of the tenant in his or her use or occupancy of the housing accom-
modations and in connection with such course of conduct, any other
general enforcement provision of this law shall also apply.
b. The owner of any housing accommodation that is not subject to this
law pursuant to the provisions of subdivision a of this section or
subparagraph [k] (K) of paragraph [2] TWO of subdivision e of section
26-403 of this code shall give written notice certified by such owner to
the first tenant of that housing accommodation after such housing accom-
modation becomes exempt from the provisions of this law or the city rent
and rehabilitation law. Such notice shall contain the last MONTHLY regu-
lated rent, the reason that such housing accommodation is not subject to
this law or the city rent and rehabilitation law, a calculation of how
either the rental amount charged when there is no lease or the rental
amount provided for in the lease has been derived so as to reach [two
thousand dollars or more per month] AN AMOUNT EQUAL TO OR GREATER THAN
THE GREATER OF TWO THOUSAND DOLLARS OR THE ADJUSTED SUM DETERMINED
PURSUANT TO SECTION 26-504.1 OF THIS CHAPTER, a statement that the last
legal regulated rent or the maximum rent may be verified by the tenant
by contacting the state division of housing and community renewal, or
any successor thereto, and the address and telephone number of such
agency, or any successor thereto. Such notice shall be sent by certified
mail within thirty days after the tenancy commences or after the signing
of the lease by both parties, whichever occurs first or shall be deliv-
ered to the tenant at the signing of the lease. In addition, the owner
shall send and certify to the tenant a copy of the registration state-
ment for such housing accommodation filed with the state division of
housing and community renewal indicating that such housing accommodation
became exempt from the provisions of this law or the city rent and reha-
bilitation law, which form shall include the last regulated rent, and
shall be sent to the tenant within thirty days after the tenancy
commences or the filing of such registration, whichever occurs later.
S 5. Subdivision (b) of section 26-504.3 of the administrative code of
the city of New York, as amended by chapter 116 of the laws of 1997, is
amended to read as follows:
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the MONTHLY legal regulated rent
is [two thousand dollars or more per month] EQUAL TO OR GREATER THAN THE
GREATER OF TWO THOUSAND DOLLARS OR THE ADJUSTED SUM AS DETERMINED PURSU-
A. 5744 5
ANT TO SECTION 26-504.1 OF THIS CHAPTER, may provide the tenant or
tenants residing therein with an income certification form prepared by
the division of housing and community renewal on which such tenant or
tenants shall identify all persons referred to in subdivision (a) of
this section and shall certify whether the total annual income is in
excess of one hundred seventy-five thousand dollars in each of the two
preceding calendar years. Such income certification form shall state
that the income level certified to by the tenant may be subject to
verification by the department of taxation and finance pursuant to
section one hundred seventy-one-b of the tax law and shall not require
disclosure of any income information other than whether the aforemen-
tioned threshold has been exceeded. Such income certification form shall
clearly state that: (i) only tenants residing in housing accommodations
which have a MONTHLY legal regulated rent [of two thousand dollars or
more per month] EQUAL TO OR GREATER THAN THE GREATER OF TWO THOUSAND
DOLLARS OR THE ADJUSTED SUM AS DETERMINED PURSUANT TO SECTION 26-504.1
OF THIS CHAPTER, are required to complete the certification form; (ii)
that tenants have protections available to them which are designed to
prevent harassment; (iii) that tenants are not required to provide any
information regarding their income except that which is requested on the
form and may contain such other information the division deems appropri-
ate. The tenant or tenants shall return the completed certification to
the owner within thirty days after service upon the tenant or tenants.
In the event that the total annual income as certified is in excess of
one hundred seventy-five thousand dollars in each such year, the owner
may file the certification with the state division of housing and commu-
nity renewal on or before June thirtieth of such year. Upon filing such
certification with the division, the division shall, within thirty days
after the filing, issue an order providing that such housing accommo-
dation shall not be subject to the provisions of this act upon the expi-
ration of the existing lease. A copy of such order shall be mailed by
regular and certified mail, return receipt requested, to the tenant or
tenants and a copy thereof shall be mailed to the owner.
S 6. Separability clause. If any provision of this act or the applica-
tion thereof shall for any reason be adjudged by any court of competent
jurisdiction to be invalid or unconstitutional, such judgment shall not
affect, impair or invalidate the remainder of this act but shall be
confined in its operation to the provision thereof directly involved in
the controversy in which such judgment shall have been rendered;
provided, however, that in the event that the entire system of rent
control or stabilization shall be finally adjudged invalid or unconsti-
tutional by a court of competent jurisdiction because of the operation
of any provision of this act, such provision shall be null, void and
without effect and all the other provisions of this act which can be
given effect without such invalid provision, as well as provisions of
any other law, relating to the control of or stabilization of rent, as
in effect prior to the enactment of this act and as otherwise amended by
this act, shall continue in full force and effect for the period of
effectiveness set forth in this act.
S 7. Any rule or regulation or form necessary for the implementation
of this act, or any section of this act, is authorized and directed to
be made and completed within 180 days after the date on which this act
becomes a law.
S 8. This act shall take effect immediately; provided that the amend-
ments to sections 26-403 and 26-403.1 of the city rent and rehabili-
tation law made by sections one and two of this act shall remain in full
A. 5744 6
force and effect only as long as the public emergency requiring the
regulation and control of residential rents and evictions continues, as
provided in subdivision 3 of section 1 of the local emergency housing
rent control act; and provided that the amendments to sections 26-504.1,
26-504.2 and 26-504.3 of the rent stabilization law of nineteen hundred
sixty-nine made by sections three, four and five of this act shall
expire on the same date as such law expires and shall not affect the
expiration of such law as provided under section 26-520 of such law.