LBD08273-03-1
A. 2674--A 2
tive code of the city of New York, the emergency tenant protection act
of nineteen seventy-four, and the emergency housing rent control law,
in relation to adjustment of maximum allowable rent (Part F); to
repeal paragraph 13 of subdivision a of section 5 of section 4 of
chapter 576 of the laws of 1974 constituting the emergency tenant
protection act of nineteen seventy-four, paragraph (n) of subdivision
2 of section 2 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, and section 26-504.2 and subpara-
graph (k) of paragraph 2 of subdivision e of section 26-403 of the
administrative code of the city of New York, relating to vacancy
decontrol (Part G); to amend the emergency tenant protection act of
nineteen seventy-four and the administrative code of the city of New
York, in relation to the regulation of rents (Part H); to amend the
administrative code of the city of New York and the emergency tenant
protection act of nineteen seventy-four, in relation to hardship
applications (Part I); to amend the administrative code of the city of
New York, the emergency tenant protection act of nineteen seventy-four
and the emergency housing rent control law, in relation to extending
the length of time over which major capital improvement expenses may
be recovered (Part J); to amend the emergency tenant protection act of
nineteen seventy-four, in relation to the declaration of housing emer-
gencies for rental housing accommodations located in buildings owned
by certain limited-profit housing companies (Part K); and to amend the
emergency tenant protection act of nineteen seventy-four, the emergen-
cy housing rent control law, the administrative code of the city of
New York and the tax law, in relation to deregulation thresholds (Part
L)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
related to rent regulations in the state of New York. Each component is
wholly contained within a Part identified as Parts A through L. The
effective date for each particular provision contained within such Part
is set forth in the last section of such Part. Any provision in any
section contained within a Part, including the effective date of the
Part, which makes reference to a section "of this act", when used in
connection with that particular component, shall be deemed to mean and
refer to the corresponding section of the Part in which it is found.
Section three of this act sets forth the general effective date of this
act.
PART A
Section 1. Paragraph 1 of subdivision b of section 26-408 of the
administrative code of the city of New York is amended to read as
follows:
(1) The landlord seeks in good faith to recover possession of a hous-
ing accommodation because of immediate and compelling necessity for his
or her own personal use and occupancy AS HIS OR HER PRIMARY RESIDENCE or
for the use and occupancy of his or her immediate family AS THEIR PRIMA-
RY RESIDENCE provided, however, that this subdivision shall PERMIT
RECOVERY OF ONLY ONE HOUSING ACCOMMODATION AND SHALL not apply where a
member of the household lawfully occupying the housing accommodation is
A. 2674--A 3
sixty-two years of age or older, has been a tenant in a housing accommo-
dation in that building for twenty years or more, or has an impairment
which results from anatomical, physiological or psychological condi-
tions, other than addiction to alcohol, gambling, or any controlled
substance, which are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in any substantial gainful
employment; or
S 2. Subparagraph (b) of paragraph 9 of subdivision c of section
26-511 of the administrative code of the city of New York is amended to
read as follows:
(b) where he or she seeks to recover possession of one [or more]
dwelling [units] UNIT BECAUSE OF IMMEDIATE AND COMPELLING NECESSITY for
his or her own personal use and occupancy as his or her primary resi-
dence [in the city of New York and/or] OR for the use and occupancy of a
member of his or her immediate family as his or her primary residence
[in the city of New York], provided however, that this subparagraph
shall PERMIT RECOVERY OF ONLY ONE DWELLING UNIT AND SHALL not apply
where a tenant or the spouse of a tenant lawfully occupying the dwelling
unit is sixty-two years of age or older, HAS BEEN A TENANT IN A DWELLING
UNIT IN THAT BUILDING FOR TWENTY YEARS OR MORE, or has an impairment
which results from anatomical, physiological or psychological condi-
tions, other than addiction to alcohol, gambling, or any controlled
substance, which are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are expected to be permanent
and which prevent the tenant from engaging in any substantial gainful
employment, unless such owner offers to provide and if requested,
provides an equivalent or superior housing accommodation at the same or
lower stabilized rent in a closely proximate area. The provisions of
this subparagraph shall only permit one of the individual owners of any
building to recover possession of one [or more] dwelling [units] UNIT
for his or her own personal use and/or for that of his or her immediate
family. [Any] A dwelling unit recovered by an owner pursuant to this
subparagraph shall not for a period of three years be rented, leased,
subleased or assigned to any person other than a person for whose bene-
fit recovery of the dwelling unit is permitted pursuant to this subpara-
graph or to the tenant in occupancy at the time of recovery under the
same terms as the original lease. This subparagraph shall not be deemed
to establish or eliminate any claim that the former tenant of the dwell-
ing unit may otherwise have against the owner. Any such rental, lease,
sublease or assignment during such period to any other person may be
subject to a penalty of a forfeiture of the right to any increases in
residential rents in such building for a period of three years; or
S 3. Subdivision a of section 10 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four, as amended by chapter 234 of the laws of 1984, is
amended to read as follows:
a. For cities having a population of less than one million and towns
and villages, the state division of housing and community renewal shall
be empowered to implement this act by appropriate regulations. Such
regulations may encompass such speculative or manipulative practices or
renting or leasing practices as the state division of housing and commu-
nity renewal determines constitute or are likely to cause circumvention
of this act. Such regulations shall prohibit practices which are likely
to prevent any person from asserting any right or remedy granted by this
act, including but not limited to retaliatory termination of periodic
A. 2674--A 4
tenancies and shall require owners to grant a new one or two year vacan-
cy or renewal lease at the option of the tenant, except where a mortgage
or mortgage commitment existing as of the local effective date of this
act provides that the owner shall not grant a one-year lease; and shall
prescribe standards with respect to the terms and conditions of new and
renewal leases, additional rent and such related matters as security
deposits, advance rental payments, the use of escalator clauses in leas-
es and provision for increase in rentals for garages and other ancillary
facilities, so as to insure that the level of rent adjustments author-
ized under this law will not be subverted and made ineffective. Any
provision of the regulations permitting an owner to refuse to renew a
lease on grounds that the owner seeks to recover possession of [the] A
housing accommodation for his OR HER own use and occupancy or for the
use and occupancy of his OR HER immediate family shall PERMIT RECOVERY
OF ONLY ONE HOUSING ACCOMMODATION, SHALL require that an owner demon-
strate immediate and compelling need AND THAT THE HOUSING ACCOMMODATION
WILL BE THE PROPOSED OCCUPANTS' PRIMARY RESIDENCE and shall not apply
where a member of the housing accommodation is sixty-two years of age or
older, has been a tenant in a housing accommodation in that building for
twenty years or more, or has an impairment which results from anatom-
ical, physiological or psychological conditions, other than addiction to
alcohol, gambling, or any controlled substance, which are demonstrable
by medically acceptable clinical and laboratory diagnostic techniques,
and which are expected to be permanent and which prevent the tenant from
engaging in any substantial gainful employment.
S 4. Paragraph (a) of subdivision 2 of section 5 of chapter 274 of the
laws of 1946, constituting the emergency housing rent control law, as
amended by chapter 234 of the laws of 1984, is amended to read as
follows:
(a) the landlord seeks in good faith to recover possession of A hous-
ing [accommodations] ACCOMMODATION because of immediate and compelling
necessity for his OR HER own personal use and occupancy AS HIS OR HER
PRIMARY RESIDENCE or for the use and occupancy of his OR HER immediate
family AS THEIR PRIMARY RESIDENCE; provided, however, this subdivision
shall PERMIT RECOVERY OF ONLY ONE HOUSING ACCOMMODATION AND SHALL not
apply where a member of the household lawfully occupying the housing
accommodation is sixty-two years of age or older, has been a tenant in a
housing accommodation in that building for twenty years or more, or has
an impairment which results from anatomical, physiological or psycholog-
ical conditions, other than addiction to alcohol, gambling, or any
controlled substance, which are demonstrable by medically acceptable
clinical and laboratory diagnostic techniques, and which are expected to
be permanent and which prevent the tenant from engaging in any substan-
tial gainful employment; or
S 5. This act shall take effect immediately and shall apply to any
tenant in possession at or after the time it takes effect, regardless of
whether the landlord's application for an order, refusal to renew a
lease or refusal to extend or renew a tenancy took place before this act
shall have taken effect, provided that:
a. the amendments to section 26-408 of the city rent and rehabili-
tation law made by section one of this act shall remain in full 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;
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b. the amendments to section 26-511 of the rent stabilization law of
nineteen hundred sixty-nine made by section two 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;
c. the amendments to subdivision a of section 10 of section 4 of the
emergency tenant protection act of nineteen seventy-four made by section
three of this act shall expire on the same date as such act expires and
shall not affect the expiration of such act as provided in section 17 of
chapter 576 of the laws of 1974; and
d. the amendments to paragraph (a) of subdivision 2 of section 5 of
the emergency housing rent control law made by section four of this act
shall expire on the same date as such law expires and shall not affect
the expiration of such law as provided in subdivision 2 of section 1 of
chapter 274 of the laws of 1946.
PART B
Section 1. Paragraph 5-a of subdivision c of section 26-511 of the
administrative code of the city of New York, as added by chapter 116 of
the laws of 1997, is amended to read as follows:
(5-a) provides that, notwithstanding any provision of this chapter,
the legal regulated rent for any vacancy lease entered into after the
effective date of this paragraph shall be as hereinafter provided in
this paragraph. The previous legal regulated rent for such housing
accommodation shall be increased by the following: (i) if the vacancy
lease is for a term of two years, [twenty] TEN percent of the previous
legal regulated rent; or (ii) if the vacancy lease is for a term of one
year the increase shall be [twenty] TEN percent of the previous legal
regulated rent less an amount equal to the difference between (a) the
two year renewal lease guideline promulgated by the guidelines board of
the city of New York applied to the previous legal regulated rent and
(b) the one year renewal lease guideline promulgated by the guidelines
board of the city of New York applied to the previous legal regulated
rent. In addition, if the legal regulated rent was not increased with
respect to such housing accommodation by a permanent vacancy allowance
within eight years prior to a vacancy lease executed on or after the
effective date of this paragraph, the legal regulated rent may be
further increased by an amount equal to the product resulting from
multiplying such previous legal regulated rent by six-tenths of one
percent and further multiplying the amount of rent increase resulting
therefrom by the greater of (A) the number of years since the imposition
of the last permanent vacancy allowance, or (B) if the rent was not
increased by a permanent vacancy allowance since the housing accommo-
dation became subject to this chapter, the number of years that such
housing accommodation has been subject to this chapter. Provided that if
the previous legal regulated rent was less than three hundred dollars
the total increase shall be as calculated above plus one hundred dollars
per month. Provided, further, that if the previous legal regulated rent
was at least three hundred dollars and no more than five hundred dollars
in no event shall the total increase pursuant to this paragraph be less
than one hundred dollars per month. Such increase shall be in lieu of
any allowance authorized for the one or two year renewal component ther-
eof, but shall be in addition to any other increases authorized pursuant
to this chapter including an adjustment based upon a major capital
improvement, or a substantial modification or increase of dwelling space
or services, or installation of new equipment or improvements or new
A. 2674--A 6
furniture or furnishings provided in or to the housing accommodation
pursuant to this section. THE INCREASE AUTHORIZED IN THIS PARAGRAPH MAY
NOT BE IMPLEMENTED MORE THAN ONE TIME IN ANY CALENDAR YEAR NOTWITHSTAND-
ING THE NUMBER OF VACANCY LEASES ENTERED INTO IN SUCH YEAR.
S 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, as added by chapter 116 of the laws of 1997, is
amended to read as follows:
(a-1) provides that, notwithstanding any provision of this act, the
legal regulated rent for any vacancy lease entered into after the effec-
tive date of this subdivision shall be as hereinafter set forth. The
previous legal regulated rent for such housing accommodation shall be
increased by the following: (i) if the vacancy lease is for a term of
two years, [twenty] TEN percent of the previous legal regulated rent; or
(ii) if the vacancy lease is for a term of one year the increase shall
be [twenty] TEN percent of the previous legal regulated rent less an
amount equal to the difference between (a) the two year renewal lease
guideline promulgated by the guidelines board of the county in which the
housing accommodation is located applied to the previous legal regulated
rent and (b) the one year renewal lease guideline promulgated by the
guidelines board of the county in which the housing accommodation is
located applied to the previous legal regulated rent. In addition, if
the legal regulated rent was not increased with respect to such housing
accommodation by a permanent vacancy allowance within eight years prior
to a vacancy lease executed on or after the effective date of this
subdivision, the legal regulated rent may be further increased by an
amount equal to the product resulting from multiplying such previous
legal regulated rent by six-tenths of one percent and further multiply-
ing the amount of rent increase resulting therefrom by the greater of
(A) the number of years since the imposition of the last permanent
vacancy allowance, or (B) if the rent was not increased by a permanent
vacancy allowance since the housing accommodation became subject to this
act, the number of years that such housing accommodation has been
subject to this act. Provided that if the previous legal regulated rent
was less than three hundred dollars the total increase shall be as
calculated above plus one hundred dollars per month. Provided, further,
that if the previous legal regulated rent was at least three hundred
dollars and no more than five hundred dollars in no event shall the
total increase pursuant to this subdivision be less than one hundred
dollars per month. Such increase shall be in lieu of any allowance
authorized for the one or two year renewal component thereof, but shall
be in addition to any other increases authorized pursuant to this act
including an adjustment based upon a major capital improvement, or a
substantial modification or increase of dwelling space or services, or
installation of new equipment or improvements or new furniture or
furnishings provided in or to the housing accommodation pursuant to
section six of this act. THE INCREASE AUTHORIZED IN THIS SUBDIVISION
MAY NOT BE IMPLEMENTED MORE THAN ONE TIME IN ANY CALENDAR YEAR NOTWITH-
STANDING THE NUMBER OF VACANCY LEASES ENTERED INTO IN SUCH YEAR.
S 3. This act shall take effect immediately; provided that the amend-
ments to section 26-511 of the rent stabilization law of nineteen
hundred sixty-nine made by section one 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; and provided,
further, that the amendments to section 4 of the emergency tenant
protection act of nineteen seventy-four made by section two of this act
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shall expire on the same date as such act expires and shall not affect
the expiration of such act as provided in section 17 of chapter 576 of
the laws of 1974.
PART C
Section 1. Subdivision a of section 26-504 of the administrative code
of the city of New York, subparagraph (f) of paragraph 1 as amended by
chapter 422 of the laws of 2010, is amended to read as follows:
a. Class A multiple dwellings not owned as a cooperative or as a
condominium, except as provided in section three hundred fifty-two-eeee
of the general business law, containing six or more dwelling units
which: (1) were completed after February first, nineteen hundred
forty-seven, except dwelling units (a) owned or leased by, or financed
by loans from, a public agency or public benefit corporation, (b)
subject to rent regulation under the private housing finance law or any
other state law, (c) aided by government insurance under any provision
of the national housing act, to the extent this chapter or any regu-
lation or order issued thereunder is inconsistent therewith, or (d)
located in a building for which a certificate of occupancy is obtained
after March tenth, nineteen hundred sixty-nine[;], or (e) any class A
multiple dwelling which on June first, nineteen hundred sixty-eight was
and still is commonly regarded as a hotel, transient hotel or residen-
tial hotel, and which customarily provides hotel service such as maid
service, furnishing and laundering of linen, telephone and bell boy
service, secretarial or desk service and use and upkeep of furniture and
fixtures, or (f) not occupied by the tenant, not including subtenants or
occupants, as his or her primary residence, as determined by a court of
competent jurisdiction, provided, however that no action or proceeding
shall be commenced seeking to recover possession on the ground that a
housing accommodation is not occupied by the tenant as his or her prima-
ry residence unless the owner or lessor shall have given thirty days
notice to the tenant of his or her intention to commence such action or
proceeding on such grounds. For the purposes of determining primary
residency, a tenant who is a victim of domestic violence, as defined in
section four hundred fifty-nine-a of the social services law, who has
left the unit because of such violence, and who asserts an intent to
return to the housing accommodation shall be deemed to be occupying the
unit as his or her primary residence. For the purposes of this subpara-
graph where a housing accommodation is rented to a not-for-profit hospi-
tal for residential use, affiliated subtenants authorized to use such
accommodations by such hospital shall be deemed to be tenants, or (g)
became vacant on or after June thirtieth, nineteen hundred seventy-one,
or become vacant, provided however, that this exemption shall not apply
or become effective with respect to housing accommodations which the
commissioner determines or finds became vacant because 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 discontinuance of essential services) which inter-
fered 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 occu-
pancy of the housing accommodations and provided further that any hous-
ing accommodations exempted by this paragraph shall be subject to this
law to the extent provided in subdivision b of this section; or (2) were
decontrolled by the city rent agency pursuant to section 26-414 of this
title; or (3) are exempt from control by virtue of item one, two, six or
A. 2674--A 8
seven of subparagraph (i) of paragraph two of subdivision e of section
26-403 of this title; OR (4) WERE COVERED BY A PROJECT BASED ASSISTANCE
CONTRACT PURSUANT TO SECTION EIGHT OF THE UNITED STATES HOUSING ACT OF
1937 WHICH CONTRACT IS NO LONGER IN EFFECT, NOTWITHSTANDING THE
PROVISIONS OF SUBPARAGRAPH (D) OR (G) OF PARAGRAPH ONE OF THIS SUBDIVI-
SION OR PARAGRAPH FIVE OF SUBDIVISION A OF SECTION FIVE OF THE EMERGENCY
TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR PROVIDED HOWEVER, THAT
ANY DWELLING UNIT WHICH BECOMES SUBJECT TO THIS LAW PURSUANT TO THIS
PARAGRAPH SHALL NOT BE SUBJECT TO THE PROVISIONS OF SUBDIVISION A OF
SECTION 26-513 OF THIS CHAPTER; and
S 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti-
tuting the emergency tenant protection act of nineteen seventy-four is
amended by adding a new subdivision c to read as follows:
C. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH FIVE OF SUBDIVISION A
OF THIS SECTION BUT SUBJECT TO ANY OTHER APPLICABLE EXCEPTIONS IN SUCH
SUBDIVISION, NOTHING SHALL PREVENT THE DECLARATION OF AN EMERGENCY
PURSUANT TO SECTION THREE OF SECTION FOUR OF THIS ACT FOR RENTAL HOUSING
ACCOMMODATIONS LOCATED IN A BUILDING WHICH WAS COVERED BY A PROJECT
BASED ASSISTANCE CONTRACT PURSUANT TO SECTION EIGHT OF THE UNITED STATES
HOUSING ACT OF 1937 WHICH CONTRACT IS NO LONGER IN EFFECT PROVIDED
HOWEVER, THAT ANY HOUSING ACCOMMODATION WHICH BECOMES SUBJECT TO THIS
ACT PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO THE PROVISIONS
OF SUBDIVISION A OF SECTION NINE OF SECTION FOUR OF THIS ACT.
S 3. This act shall take effect immediately and shall apply to all
buildings which are covered by a project based assistance contract
pursuant to section eight of the United States housing act of 1937 which
contract ceased to be effective on or after such date; provided, howev-
er, that the amendment to subdivision a of section 26-504 of the admin-
istrative code of the city of New York made by section one of this act
shall not affect the expiration of such section pursuant to section
26-520 of such code and shall expire therewith; and provided, further,
that the amendment to section 5 of the emergency tenant protection act
of nineteen seventy-four made by section two of this act shall not
affect the expiration of such act as provided in section 17 of chapter
576 of the laws of 1974, as amended, and shall expire therewith.
PART D
Section 1. Subdivision 5 of section 1 of chapter 21 of the laws of
1962, constituting the local emergency housing rent control act, as
amended by chapter 82 of the laws of 2003 and the closing paragraph as
amended by chapter 422 of the laws of 2010, is amended to read as
follows:
5. Authority for local rent control legislation. Each city having a
population of one million or more, acting through its local legislative
body, may adopt and amend local laws or ordinances in respect of the
establishment or designation of a city housing rent agency. When it
deems such action to be desirable or necessitated by local conditions in
order to carry out the purposes of this section, such city, except as
hereinafter provided, acting through its local legislative body and not
otherwise, may adopt and amend local laws or ordinances in respect of
the regulation and control of residential rents, including but not
limited to provision for the establishment and adjustment of maximum
rents, the classification of housing accommodations, the regulation of
evictions, and the enforcement of such local laws or ordinances. The
validity of any such local laws or ordinances, and the rules or regu-
A. 2674--A 9
lations promulgated in accordance therewith, shall not be affected by
and need not be consistent with the state emergency housing rent control
law or with rules and regulations of the state division of housing and
community renewal.
Notwithstanding any local law or ordinance, housing accommodations
which became vacant on or after July first, nineteen hundred seventy-one
or which hereafter become vacant shall be subject to the provisions of
the emergency tenant protection act of nineteen seventy-four, provided,
however, that this provision shall not apply or become effective with
respect to housing accommodations which, by local law or ordinance, are
made directly subject to regulation and control by a city housing rent
agency and such agency determines or finds that the housing accommo-
dations became vacant because the landlord or any person acting on his
behalf, with intent to cause the tenant to vacate, engaged in any course
of conduct (including but not limited to, interruption or discontinuance
of essential 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 use or occupancy of the housing accommo-
dations. The removal of any housing accommodation from regulation and
control of rents pursuant to the vacancy exemption provided for in this
paragraph shall not constitute or operate as a ground for the subjection
to more stringent regulation and control of any housing accommodation in
such property or in any other property owned by the same landlord,
notwithstanding any prior agreement to the contrary by the landlord. The
vacancy exemption provided for in this paragraph shall not arise with
respect to any rented plot or parcel of land otherwise subject to the
provisions of this act, by reason of a transfer of title and possession
occurring on or after July first, nineteen hundred seventy-one of a
dwelling located on such plot or parcel and owned by the tenant where
such transfer of title and possession is made to a member of the
tenant's immediate family provided that the member of the tenant's imme-
diate family occupies the dwelling with the tenant prior to the transfer
of title and possession for a continuous period of two years.
The term "immediate family" shall include a husband, wife, son, daugh-
ter, stepson, stepdaughter, father, mother, father-in-law or mother-in-
law.
[Notwithstanding the foregoing, no local law or ordinance shall here-
after provide for the regulation and control of residential rents and
eviction in respect of any housing accommodations which are (1) present-
ly exempt from such regulation and control or (2) hereafter decontrolled
either by operation of law or by a city housing rent agency, by order or
otherwise. No housing accommodations presently subject to regulation and
control pursuant to local laws or ordinances adopted or amended under
authority of this subdivision shall hereafter be by local law or ordi-
nance or by rule or regulation which has not been theretofore approved
by the state commissioner of housing and community renewal subjected to
more stringent or restrictive provisions of regulation and control than
those presently in effect.
Notwithstanding any other provision of law, on and after the effective
date of this paragraph, a city having a population of one million or
more shall not, either through its local legislative body or otherwise,
adopt or amend local laws or ordinances with respect to the regulation
and control of residential rents and eviction, including but not limited
to provision for the establishment and adjustment of rents, the classi-
fication of housing accommodations, the regulation of evictions, and the
enforcement of such local laws or ordinances, or otherwise adopt laws or
A. 2674--A 10
ordinances pursuant to the provisions of this act, the emergency tenant
protection act of nineteen seventy-four, the New York city rent and
rehabilitation law or the New York city rent stabilization law, except
to the extent that such city for the purpose of reviewing the continued
need for the existing regulation and control of residential rents or to
remove a classification of housing accommodation from such regulation
and control adopts or amends local laws or ordinances pursuant to subdi-
vision three of section one of this act, section three of the emergency
tenant protection act of nineteen seventy-four, section 26-415 of the
New York city rent and rehabilitation law, and sections 26-502 and
26-520 of the New York city rent stabilization law of nineteen hundred
sixty-nine.]
Notwithstanding any provision of this act to the contrary, any local
law adopted pursuant to this act shall provide that notwithstanding any
provision of such local law in the case where all tenants occupying the
housing accommodation on the effective date of this paragraph have
vacated the housing accommodation and a family member of such vacating
tenant or tenants is entitled to and continues to occupy the housing
accommodation subject to the protections of such act, if such accommo-
dation continues to be subject to such act after such family member
vacates, on the occurrence of such vacancy the maximum collectable rent
shall be increased by a sum equal to the allowance then in effect for
vacancy leases for housing accommodations covered by the rent stabiliza-
tion law of nineteen hundred sixty-nine, including the amount allowed by
paragraph (5-a) of subdivision c of section 26-511 of such law. This
increase shall be in addition to any other increases provided for in
this act and shall be applicable in like manner to each second subse-
quent succession.
Notwithstanding the foregoing, no local law or ordinance shall subject
to such regulation and control any housing accommodation which is not
occupied by the tenant in possession as his or her primary residence;
provided, however, that such housing accommodation not occupied by the
tenant in possession as his or her primary residence shall continue to
be subject to regulation and control as provided for herein unless the
city housing rent agency issues an order decontrolling such accommo-
dation, which the agency shall do upon application by the landlord when-
ever it is established by any facts and circumstances which, in the
judgment of the agency, may have a bearing upon the question of resi-
dence, that the tenant maintains his or her primary residence at some
place other than at such housing accommodation. For the purposes of
determining primary residency, a tenant who is a victim of domestic
violence, as defined in section four hundred fifty-nine-a of the social
services law, who has left the unit because of such violence, and who
asserts an intent to return to the housing accommodation shall be deemed
to be occupying the unit as his or her primary residence.
S 2. This act shall take effect immediately; provided, however, that
the amendments to subdivision 5 of section 1 of chapter 21 of the laws
of 1962 made by section one of this act shall remain in full force and
effect only so 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; provided further, however, that the amendment to the second undes-
ignated paragraph of subdivision 5 of section 1 of chapter 21 of the
laws of 1962 made by section one of this act shall not affect the expi-
ration of such paragraph and shall be deemed to expire therewith.
A. 2674--A 11
PART E
Section 1. Section 17 of chapter 576 of the laws of 1974 amending the
emergency housing rent control law relating to the control of and
stabilization of rent in certain cases, as amended by chapter 82 of the
laws of 2003, is amended to read as follows:
S 17. Effective date. This act shall take effect immediately and
shall remain in full force and effect until and including the fifteenth
day of June [2011] 2016; except that sections two and three shall take
effect with respect to any city having a population of one million or
more and section one shall take effect with respect to any other city,
or any town or village whenever the local legislative body of a city,
town or village determines the existence of a public emergency pursuant
to section three of the emergency tenant protection act of nineteen
seventy-four, as enacted by section four of this act, and provided that
the housing accommodations subject on the effective date of this act to
stabilization pursuant to the New York city rent stabilization law of
nineteen hundred sixty-nine shall remain subject to such law upon the
expiration of this act.
S 2. Subdivision 2 of section 1 of chapter 274 of the laws of 1946
constituting the emergency housing rent control law, as amended by chap-
ter 82 of the laws of 2003, is amended to read as follows:
2. The provisions of this act, and all regulations, orders and
requirements thereunder shall remain in full force and effect until and
including June 15, [2011] 2016.
S 3. Section 2 of chapter 329 of the laws of 1963 amending the emer-
gency housing rent control law relating to recontrol of rents in Albany,
as amended by chapter 82 of the laws of 2003, is amended to read as
follows:
S 2. This act shall take effect immediately and the provisions of
subdivision 6 of section 12 of the emergency housing rent control law,
as added by this act, shall remain in full force and effect until and
including June 15, [2011] 2016.
S 4. Section 10 of chapter 555 of the laws of 1982 amending the gener-
al business law and the administrative code of the city of New York
relating to conversion of residential property to cooperative or condo-
minium ownership in the city of New York, as amended by chapter 82 of
the laws of 2003, is amended to read as follows:
S 10. This act shall take effect immediately; provided, that the
provisions of sections one, two and nine of this act shall remain in
full force and effect only until and including June 15, [2011] 2016;
provided further that the provisions of section three of this act shall
remain in full force and effect only so 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 emer-
gency housing rent control act; provided further that the provisions of
sections four, five, six and seven of this act shall expire in accord-
ance with the provisions of section 26-520 of the administrative code of
the city of New York as such section of the administrative code is, from
time to time, amended; provided further that the provisions of section
26-511 of the administrative code of the city of New York, as amended by
this act, which the New York City Department of Housing Preservation and
Development must find are contained in the code of the real estate
industry stabilization association of such city in order to approve it,
shall be deemed contained therein as of the effective date of this act;
and provided further that any plan accepted for filing by the department
A. 2674--A 12
of law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eeee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 5. Section 4 of chapter 402 of the laws of 1983 amending the general
business law relating to conversion of rental residential property to
cooperative or condominium ownership in certain municipalities in the
counties of Nassau, Westchester and Rockland, as amended by chapter 82
of the laws of 2003, is amended to read as follows:
S 4. This act shall take effect immediately; provided, that the
provisions of sections one and three of this act shall remain in full
force and effect only until and including June 15, [2011] 2016; and
provided further that any plan accepted for filing by the department of
law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 6. Subdivision 6 of section 46 of chapter 116 of the laws of 1997
constituting the rent regulation reform act of 1997, as amended by chap-
ter 82 of the laws of 2003, is amended to read as follows:
6. sections twenty-eight, twenty-eight-a, twenty-eight-b and twenty-
eight-c of this act shall expire and be deemed repealed after June 15,
[2011] 2016;
S 7. This act shall take effect immediately.
PART F
Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 253 of the laws of 1993, is amended to read as follows:
(e) The landlord and tenant by mutual voluntary written agreement
agree to a substantial increase or decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided in
the housing accommodations. An adjustment under this subparagraph shall
be equal to [one-fortieth] ONE-SIXTIETH of the total cost incurred by
the landlord in providing such modification or increase in dwelling
space, services, furniture, furnishings or equipment, including the cost
of installation, but excluding finance charges, provided further [than]
THAT an owner who is entitled to a rent increase pursuant to this
subparagraph shall not be entitled to a further rent increase based upon
the installation of similar equipment, or new furniture or furnishings
within the useful life of such new equipment, or new furniture or
furnishings. The owner shall give written notice to the city rent agency
of any such adjustment pursuant to this subparagraph[.]; or
S 2. Paragraph 13 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 253 of the
laws of 1993, is amended to read as follows:
(13) provides that an owner is entitled to a rent increase where there
has been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment or improve-
ments or new furniture or furnishings provided in or to a tenant's hous-
ing accommodation, on written tenant consent to the rent increase. In
the case of a vacant housing accommodation, tenant consent shall not be
required.
(A) The permanent increase in the legal regulated rent for the
affected housing accommodation shall be [one-fortieth] ONE-SIXTIETH of
A. 2674--A 13
the total cost incurred by the landlord in providing such modification
or increase in dwelling space, services, furniture, furnishings or
equipment, including the cost of installation, but excluding finance
charges. [Provided further that an]
(B) AN owner who is entitled to a rent increase pursuant to this para-
graph shall not be entitled to a further rent increase based upon the
installation of similar equipment, or new furniture or furnishings with-
in the useful life of such new equipment, or new furniture or
furnishings.
(C) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS PARAGRAPH UNTIL THE
LANDLORD HAS PROVIDED THE TENANT WITH A RIDER PURSUANT TO SUBDIVISION D
OF THIS SECTION, INCLUDING AN EXPLANATION OF HOW THE RENT IN THE VACANCY
LEASE HAS BEEN COMPUTED, AND THE SPECIFIC AMOUNTS OF ALL EXPENDITURES
SUPPORTING A RENT INCREASE UNDER THIS PARAGRAPH.
(D) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS PARAGRAPH WHERE THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL HAS DETERMINED THAT THE OWNER
IS NOT MAINTAINING ALL BUILDING-WIDE REQUIRED SERVICES OR ALL REQUIRED
SERVICES WITH RESPECT TO THE AFFECTED HOUSING ACCOMMODATION, OR WHERE
THERE ARE CURRENT HAZARDOUS VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE
OR FEDERAL LAW WHICH RELATE TO THE MAINTENANCE OF SUCH SERVICES.
(E) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
RENT INCREASE PURSUANT TO THIS PARAGRAPH THAT EXCEEDS TEN PERCENT OF THE
RENT CHARGED TO THE PREVIOUS TENANT, THE OWNER WILL FILE WITH THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL AN EXPLANATION OF HOW THE VACANCY
RENT WAS COMPUTED, AND ALL DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION
OF SUCH INCREASE, INCLUDING BUT NOT LIMITED TO, CANCELLED CHECKS,
INVOICES AND SIGNED CONTRACTS CONTEMPORANEOUSLY WITH THE IMPROVEMENTS
ALLEGED, AND CONTRACTOR'S AFFIDAVITS INDICATING THAT THE INSTALLATION
WAS COMPLETED AND PAID IN FULL. UPON RECEIPT OF ALL DOCUMENTS SUBMITTED
BY THE OWNER, AND AFTER GIVING THE TENANT NAMED IN SUCH VACANCY LEASE AN
OPPORTUNITY TO RESPOND, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
SHALL ISSUE AN ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN WHOLE OR
IN PART. BASED UPON SUCH DETERMINATION, THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL SHALL ORDER A REFUND TO THE TENANT EQUAL TO THE AMOUNT
COLLECTED IN EXCESS OF THE LEGAL REGULATED RENT APPROVED BY THE DIVISION
OF HOUSING AND COMMUNITY RENEWAL.
(F) IF THE OWNER FAILS TO ESTABLISH BY A PREPONDERANCE OF THE EVIDENCE
THAT THE OVERCHARGE WAS NOT WILLFUL, THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL SHALL ORDER THE OWNER TO PAY TO THE TENANT AN ADDITIONAL
AMOUNT EQUAL TO THREE TIMES THE EXCESS CHARGED.
(G) THE NEXT ANNUAL REGISTRATION STATEMENT FILED FOR ANY HOUSING
ACCOMMODATION SUBJECT TO AN INCREASE UNDER THIS PARAGRAPH, WHETHER OR
NOT SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (E) OF THIS PARAGRAPH
SHALL CONTAIN A DETAILED BREAKDOWN OF THE COSTS OF ALL IMPROVEMENTS
UNDERLYING SUCH INCREASE.
S 3. Paragraph 2 of subdivision d of section 26-511 of the administra-
tive code of the city of New York is renumbered paragraph 3 and a new
paragraph 2 is added to read as follows:
(2) FOR VACANCY LEASES, SUCH RIDER SHALL ALSO INCLUDE A NOTICE OF THE
PRIOR LEGAL RENT, IF ANY, THAT WAS IN EFFECT IMMEDIATELY PRIOR TO THE
VACANCY, AN EXPLANATION OF HOW THE RENTAL AMOUNT HAS BEEN COMPUTED,
INCLUDING A DETAILED BREAKDOWN OF THE NATURE AND COST OF ANY IMPROVE-
MENTS UNDERLYING AN INCREASE UNDER PARAGRAPH THIRTEEN OF SUBDIVISION C
OF THIS SECTION, AND A STATEMENT THAT ANY INCREASE ABOVE THE PREVIOUS
RENT IS IN ACCORDANCE WITH ADJUSTMENTS PERMITTED BY LAW.
A. 2674--A 14
S 4. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as added by chapter 253 of the laws of
1993, is amended to read as follows:
(1) there has been a substantial modification or increase of dwelling
space or an increase in the services, or installation of new equipment
or improvements or new furniture or furnishings, provided in or to a
tenant's housing accommodation, on written tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. (A) The permanent increase in the legal regulated
rent for the affected housing accommodation shall be [one-fortieth]
ONE-SIXTIETH of the total cost incurred by the landlord in providing
such modification or increase in dwelling space, services, furniture,
furnishings or equipment, including the cost of installation, but
excluding finance charges. [Provided further than an] (B) AN owner who
is entitled to a rent increase pursuant to this paragraph shall not be
entitled to a further rent increase based upon the installation of simi-
lar equipment, or new furniture or furnishings within the useful life of
such new equipment, or new furniture or furnishings. (C) THE OWNER
SHALL GIVE WRITTEN NOTICE TO THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL AND THE TENANT NAMED IN A VACANCY LEASE ON FORMS PRESCRIBED BY
THE DIVISION OF ANY SUCH ADJUSTMENT PURSUANT TO THIS PARAGRAPH AND THE
FAILURE TO PROVIDE SUCH WRITTEN NOTICE AS PROVIDED HEREIN SHALL PRECLUDE
THE COLLECTION OF ANY SUCH ADJUSTMENT. SUCH NOTICE MUST INCLUDE A
DETAILED BREAKDOWN OF THE NATURE AND COST OF ANY IMPROVEMENTS UNDERLYING
AN INCREASE IN RENT UNDER THIS PARAGRAPH AND A STATEMENT THAT ANY
INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE WITH ADJUSTMENTS
PERMITTED BY LAW. (D) NO INCREASE SHALL BE COLLECTIBLE UNDER THIS PARA-
GRAPH WHERE THE DIVISION OF HOUSING AND COMMUNITY RENEWAL HAS DETERMINED
THAT THE OWNER IS NOT MAINTAINING ALL BUILDING-WIDE REQUIRED SERVICES OR
ALL REQUIRED SERVICES WITH RESPECT TO THE AFFECTED HOUSING ACCOMMO-
DATION, OR WHERE THERE ARE CURRENT HAZARDOUS VIOLATIONS OF ANY MUNICI-
PAL, COUNTY, STATE OR FEDERAL LAW WHICH RELATE TO THE MAINTENANCE OF
SUCH SERVICES. (E) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE
INCLUDING A RENT INCREASE PURSUANT TO THIS PARAGRAPH THAT EXCEEDS TEN
PERCENT OF THE RENT CHARGED TO THE PREVIOUS TENANT, THE OWNER WILL FILE
WITH THE DIVISION AN EXPLANATION OF HOW THE VACANCY RENT WAS COMPUTED,
AND ALL DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE,
INCLUDING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED
CONTRACTS CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED, AND CONTRAC-
TOR'S AFFIDAVITS INDICATING THAT THE INSTALLATION WAS COMPLETED AND PAID
IN FULL. UPON RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE OWNER AND AFTER
GIVING THE TENANT NAMED IN THE VACANCY LEASE AN OPPORTUNITY TO RESPOND,
THE DIVISION SHALL ISSUE AN ORDER APPROVING OR DISAPPROVING SUCH
INCREASE IN WHOLE OR IN PART. BASED UPON SUCH DETERMINATION, THE DIVI-
SION SHALL ORDER A REFUND TO THE TENANT EQUAL TO THE AMOUNT COLLECTED IN
EXCESS OF THE LEGAL REGULATED RENT APPROVED BY THE DIVISION. (F) IF THE
OWNER FAILS TO ESTABLISH BY A PREPONDERANCE OF THE EVIDENCE THAT THE
OVERCHARGE WAS NOT WILLFUL, THE DIVISION SHALL ORDER THE OWNER TO PAY TO
THE TENANT AN ADDITIONAL AMOUNT EQUAL TO THREE TIMES THE EXCESS CHARGED.
(G) THE NEXT ANNUAL REGISTRATION STATEMENT FILED FOR ANY HOUSING ACCOM-
MODATION SUBJECT TO AN INCREASE UNDER THIS PARAGRAPH, WHETHER OR NOT
SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (E) OF THIS PARAGRAPH SHALL
CONTAIN A DETAILED BREAKDOWN OF THE COSTS OF ALL IMPROVEMENTS UNDERLYING
SUCH INCREASE.
A. 2674--A 15
S 5. Clause 5 of the second undesignated paragraph of paragraph (a) of
subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti-
tuting the emergency housing rent control law, as amended by chapter 253
of the laws of 1993, is amended to read as follows:
(5) the landlord and tenant by mutual voluntary written agreement
agree to a substantial increase or decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided in
the housing accommodations; provided that an owner shall be entitled to
a rent increase where there has been a substantial modification or
increase of dwelling space or an increase in the services, or installa-
tion of new equipment or improvements or new furniture or furnishings
provided in or to a tenant's housing accommodation. The permanent
increase in the maximum rent for the affected housing accommodation
shall be [one-fortieth] ONE-SIXTIETH of the total cost incurred by the
landlord in providing such modification or increase in dwelling space,
services, furniture, furnishings or equipment, including the cost of
installation, but excluding finance charges provided further that an
owner who is entitled to a rent increase pursuant to this clause shall
not be entitled to a further rent increase based upon the installation
of similar equipment, or new furniture or furnishings within the useful
life of such new equipment, or new furniture or furnishings. The owner
shall give written notice to the commission of any such adjustment
pursuant to this clause; or
S 6. This act shall take effect on the ninetieth day after it shall
have become a law; provided that:
(a) the amendments to section 26-405 of the city rent and rehabili-
tation law made by section one of this act shall remain in full 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;
(b) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections two and three 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;
(c) the amendments to the emergency tenant protection act of nineteen
seventy-four made by section four of this act shall expire on the same
date as such act expires and shall not affect the expiration of such act
as provided in section 17 of chapter 576 of the laws of 1974;
(d) the amendments to section 4 of the emergency housing rent control
law made by section 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 in subdivision 2 of section 1 of chapter 274 of the laws of
1946; and
(e) effective immediately, the division of housing and community
renewal is authorized to and shall promulgate all rules, regulations and
standards necessary to implement the provisions of this act.
PART G
Section 1. Legislative findings and declaration of emergency. The
legislature hereby finds and declares that the serious public emergency
which led to the enactment of the existing laws regulating residential
rents and evictions continues to exist; that such laws would better
serve the public interest if certain changes were made thereto, includ-
ing the continued regulation of certain housing accommodations that
A. 2674--A 16
become vacant and the reinstatement of regulation of certain housing
accommodations that have been deregulated upon vacancy.
The legislature further recognizes that severe disruption of the
rental housing market has occurred and threatens to be exacerbated as a
result of the present state of the law in relation to the deregulation
of housing accommodations upon vacancy. The situation has permitted
speculative and profiteering practices and has brought about the loss of
vital and irreplaceable affordable housing for working persons and fami-
lies.
The legislature therefore declares that in order to prevent uncertain-
ty, potential hardship and dislocation of tenants living in housing
accommodations subject to government regulations as to rentals and
continued occupancy as well as those not subject to such regulation, the
provisions of this act are necessary to protect the public health, safe-
ty and general welfare. The necessity in the public interest for the
provisions hereinafter enacted is hereby declared as a matter of legis-
lative determination.
S 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
laws of 1946, constituting the emergency housing rent control law, is
REPEALED.
S 3. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, is REPEALED.
S 4. Subparagraph (k) of paragraph 2 of subdivision e of section
26-403 of the administrative code of the city of New York is REPEALED.
S 5. Section 26-504.2 of the administrative code of the city of New
York is REPEALED.
S 6. Any housing accommodations that on or after January 1, 2007 were
excluded from coverage from the emergency tenant protection act of nine-
teen seventy-four, the emergency housing rent control law or the admin-
istrative code of the city of New York pursuant to the provisions of law
repealed by sections two, three, four and five of this act shall be
subject to the provisions of such act, law or administrative code,
respectively. Notwithstanding the provisions of any lease or rental
agreement, the legal regulated rent or maximum collectible rent of any
housing accommodation excluded from regulation on or after January 1,
2007 by reason of the provisions repealed by sections two, three, four
and five of this act shall be the legal regulated rent or maximum
collectible rent applicable to such accommodation on December 31, 2006,
subject to further adjustment in accordance with applicable provisions
of law.
S 7. Any housing accommodations that prior to January 1, 2007 were
excluded from coverage from the emergency tenant protection act of nine-
teen seventy-four, the emergency housing rent control law or the admin-
istrative code of the city of New York pursuant to the provisions of law
repealed by sections two, three, four, and five of this act, and where
such housing accommodations were located outside the city of New York
and were rented to a tenant on or after January 1, 2007 for less than
$3,500 per month or were located within the city of New York and were
rented to a tenant on or after January 1, 2007 for less than $5,000.00
per month, shall be subject to the provisions of such act, law or admin-
istrative code, respectively. Notwithstanding the provisions of any
lease or rental agreement, the legal regulated rent or maximum collect-
ible rent of any housing accommodation excluded from regulation prior to
January 1, 2007 by reason of the provisions repealed by sections two,
three, four and five of this act and made subject to regulation shall be
A. 2674--A 17
the actual rent applicable to such accommodations on January 1, 2007 or
the first rent applicable to such accommodation after January 1, 2007,
subject to further adjustment in accordance with applicable provisions
of law.
S 8. This act shall take effect immediately.
PART H
Section 1. Subdivision a-2 of section 10 of section 4 of chapter 576
of the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, as added by chapter 82 of the laws of 2003, is
amended to read as follows:
[a-2.] (A-2) Provides that where the amount of rent charged to and
paid by the tenant is less than the legal regulated rent for the housing
accommodation, the amount of rent for such housing accommodation which
may be charged [upon renewal or] upon vacancy thereof may, at the option
of the owner, be based upon such previously established legal regulated
rent, as adjusted by [the most recent] ALL applicable guidelines
increases and other increases authorized by law; PROVIDED, HOWEVER, THAT
SUCH VACANCY SHALL NOT BE CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT
OF THE OWNER, TO MAINTAIN THE HOUSING ACCOMMODATION IN COMPLIANCE WITH
THE WARRANTY OF HABITABILITY SET FORTH IN SUBDIVISION ONE OF SECTION TWO
HUNDRED THIRTY-FIVE-B OF THE REAL PROPERTY LAW. [Where, subsequent to
vacancy, such legal regulated rent, as adjusted by the most recent
applicable guidelines increases and any other increases authorized by
law is two thousand dollars or more per month, such housing accommo-
dation shall be excluded from the provisions of this act pursuant to
paragraph thirteen of subdivision a of section five of this act.]
S 2. Paragraph 14 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 82 of the laws
of 2003, is amended to read as follows:
(14) provides that where the amount of rent charged to and paid by the
tenant is less than the legal regulated rent for the housing accommo-
dation, the amount of rent for such housing accommodation which may be
charged [upon renewal or] upon vacancy thereof may, at the option of the
owner, be based upon such previously established legal regulated rent,
as adjusted by the most recent applicable guidelines increases and any
other increases authorized by law; PROVIDED, HOWEVER, THAT SUCH VACANCY
SHALL NOT BE CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT OF THE
OWNER, TO MAINTAIN THE HOUSING ACCOMMODATION IN COMPLIANCE WITH THE
WARRANTY OF HABITABILITY SET FORTH IN SUBDIVISION ONE OF SECTION TWO
HUNDRED THIRTY-FIVE-B OF THE REAL PROPERTY LAW. [Where, subsequent to
vacancy, such legal regulated rent, as adjusted by the most recent
applicable guidelines increases and any other increases authorized by
law is two thousand dollars or more per month, such housing accommo-
dation shall be excluded from the provisions of this law pursuant to
section 26-504.2 of this chapter.]
S 3. This act shall take effect immediately; provided, however, that
the amendments to section 10 of the emergency tenant protection act of
nineteen seventy-four made by section one of this act shall expire on
the same date as such act expires and shall not affect the expiration of
such act as provided in section 17 of chapter 576 of the laws of 1974;
and provided, further, that the amendments to section 26-511 of the rent
stabilization law of nineteen hundred sixty-nine made by section two of
this act shall expire on the same date as such law expires and shall not
A. 2674--A 18
affect the expiration of such law as provided under section 26-520 of
such law.
PART I
Section 1. Paragraph 6-a of subdivision c of section 26-511 of the
administrative code of the city of New York is amended to read as
follows:
(6-a) provides criteria whereby as an alternative to the hardship
application provided under paragraph six of this subdivision owners of
buildings acquired by the same owner or a related entity owned by the
same principals [three] SIX years prior to the date of application may
apply to the division for increases in excess of the level of applicable
guideline increases established under this law based on a finding by the
commissioner that such guideline increases are not sufficient to enable
the owner to maintain an annual gross rent income for such building
which exceeds the annual operating expenses of such building by a sum
equal to at least five percent of such gross rent. For the purposes of
this paragraph, operating expenses shall consist of the actual, reason-
able, costs of fuel, labor, utilities, taxes, other than income or
corporate franchise taxes, fees, permits, necessary contracted services
and non-capital repairs, insurance, parts and supplies, management fees
and other administrative costs and mortgage interest. For the purposes
of this paragraph, mortgage interest shall be deemed to mean interest on
a bona fide mortgage including an allocable portion of charges related
thereto. Criteria to be considered in determining a bona fide mortgage
other than an institutional mortgage shall include; condition of the
property, location of the property, the existing mortgage market at the
time the mortgage is placed, the term of the mortgage, the amortization
rate, the principal amount of the mortgage, security and other terms and
conditions of the mortgage. The commissioner shall set a rental value
for any unit occupied by the owner or a person related to the owner or
unoccupied at the owner's choice for more than one month at the last
regulated rent plus the minimum number of guidelines increases or, if no
such regulated rent existed or is known, the commissioner shall impute a
rent consistent with other rents in the building. The amount of hardship
increase shall be such as may be required to maintain the annual gross
rent income as provided by this paragraph. The division shall not grant
a hardship application under this paragraph or paragraph six of this
subdivision for a period of three years subsequent to granting a hard-
ship application under the provisions of this paragraph. The collection
of any increase in the rent for any housing accommodation pursuant to
this paragraph shall not exceed six percent in any year from the effec-
tive date of the order granting the increase over the rent set forth in
the schedule of gross rents, with collectability of any dollar excess
above said sum to be spread forward in similar increments and added to
the rent as established or set in future years. No application shall be
approved unless the owner's equity in such building exceeds five percent
of: (i) the arms length purchase price of the property; (ii) the cost of
any capital improvements for which the owner has not collected a
surcharge; (iii) any repayment of principal of any mortgage or loan used
to finance the purchase of the property or any capital improvements for
which the owner has not collected a surcharge and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner. For
the purposes of this paragraph, owner's equity shall mean the sum of (i)
A. 2674--A 19
the purchase price of the property less the principal of any mortgage or
loan used to finance the purchase of the property, (ii) the cost of any
capital improvement for which the owner has not collected a surcharge
less the principal of any mortgage or loan used to finance said improve-
ment, (iii) any repayment of the principal of any mortgage or loan used
to finance the purchase of the property or any capital improvement for
which the owner has not collected a surcharge, and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner.
S 2. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974 enacting the emergency tenant protection act of
nineteen seventy-four, as amended by chapter 102 of the laws of 1984, is
amended to read as follows:
(5) as an alternative to the hardship application provided under para-
graph four of this subdivision, owners of buildings acquired by the same
owner or a related entity owned by the same principals [three] SIX years
prior to the date of application may apply to the division for increases
in excess of the level of applicable guideline increases established
under this law based on a finding by the commissioner that such guide-
line increases are not sufficient to enable the owner to maintain an
annual gross rent income for such building which exceeds the annual
operating expenses of such building by a sum equal to at least five
percent of such gross rent. For the purposes of this paragraph, operat-
ing expenses shall consist of the actual, reasonable, costs of fuel,
labor, utilities, taxes, other than income or corporate franchise taxes,
fees, permits, necessary contracted services and non-capital repairs,
insurance, parts and supplies, management fees and other administrative
costs and mortgage interest. For the purposes of this paragraph, mort-
gage interest shall be deemed to mean interest on a bona fide mortgage
including an allocable portion of charges related thereto. Criteria to
be considered in determining a bona fide mortgage other than an institu-
tional mortgage shall include; condition of the property, location of
the property, the existing mortgage market at the time the mortgage is
placed, the term of the mortgage, the amortization rate, the principal
amount of the mortgage, security and other terms and conditions of the
mortgage. The commissioner shall set a rental value for any unit occu-
pied by the owner or a person related to the owner or unoccupied at the
owner's choice for more than one month at the last regulated rent plus
the minimum number of guidelines increases or, if no such regulated rent
existed or is known, the commissioner shall impute a rent consistent
with other rents in the building. The amount of hardship increase shall
be such as may be required to maintain the annual gross rent income as
provided by this paragraph. The division shall not grant a hardship
application under this paragraph or paragraph four of this subdivision
for a period of three years subsequent to granting a hardship applica-
tion under the provisions of this paragraph. The collection of any
increase in the rent for any housing accommodation pursuant to this
paragraph shall not exceed six percent in any year from the effective
date of the order granting the increase over the rent set forth in the
schedule of gross rents, with collectability of any dollar excess above
said sum to be spread forward in similar increments and added to the
rent as established or set in future years. No application shall be
approved unless the owner's equity in such building exceeds five percent
of: (i) the arms length purchase price of the property; (ii) the cost of
any capital improvements for which the owner has not collected a
surcharge; (iii) any repayment of principal of any mortgage or loan used
A. 2674--A 20
to finance the purchase of the property or any capital improvements for
which the owner has not collected a surcharge; and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner. For
the purposes of this paragraph, owner's equity shall mean the sum of (i)
the purchase price of the property less the principal of any mortgage or
loan used to finance the purchase of the property, (ii) the cost of any
capital improvement for which the owner has not collected a surcharge
less the principal of any mortgage or loan used to finance said improve-
ment, (iii) any repayment of the principal of any mortgage or loan used
to finance the purchase of the property or any capital improvement for
which the owner has not collected a surcharge, and (iv) any increase in
the equalized assessed value of the property which occurred subsequent
to the first valuation of the property after purchase by the owner.
S 3. This act shall take effect immediately; provided that the amend-
ments to section 26-511 of chapter 4 of title 26 of the administrative
code of the city of New York made by section one 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; and
provided that the amendments to section 6 of the emergency tenant
protection act of nineteen seventy-four made by section two of this act
shall expire on the same date as such act expires and shall not affect
the expiration of such act as provided in section 17 of chapter 576 of
the laws of 1974.
PART J
Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990, is amended to read as follows:
(g) (I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT AUTHORIZED PURSU-
ANT TO ITEM (II) OF THIS SUBPARAGRAPH SHALL CEASE WHEN THE OWNER HAS
RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT;
(II) There has been since July first, nineteen hundred seventy, a
major capital improvement [required for the operation, preservation or
maintenance of the structure. An adjustment under this subparagraph (g)
shall be in an amount sufficient to amortize the cost of the improve-
ments pursuant to this subparagraph (g) over a seven-year period];
PROVIDED THAT THE COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED
DEPRECIABLE UNDER THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE
REQUIRED FOR THE OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUC-
TURE. THE INCREASE PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE
COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPA-
RATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY
OTHER ADJUSTMENT TO THE MAXIMUM RENT. THE SURCHARGE ALLOCABLE TO EACH
APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT
DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING,
AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED
THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT IN ANY ONE YEAR MAY NOT
EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY
THE OWNER FOR SUCH APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS
RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED FORWARD AND
COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDI-
TIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE
EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT
LIMITATION DID NOT APPLY; or
A. 2674--A 21
S 2. Subparagraph (k) of paragraph 1 of subdivision g of section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990, is amended to read as follows:
(k) The landlord has incurred, since January first, nineteen hundred
seventy, in connection with and in addition to a concurrent major capi-
tal improvement pursuant to subparagraph (g) of this paragraph, other
expenditures to improve, restore or preserve the quality of the struc-
ture. An adjustment under this subparagraph shall be granted only if
such improvements represent an expenditure equal to at least ten per
centum of the total operating and maintenance expenses for the preceding
year. An adjustment under this subparagraph shall be in addition to any
adjustment granted for the concurrent major capital improvement and
shall be [in an amount sufficient to amortize the cost of the improve-
ments pursuant to this subparagraph over a seven-year period] IMPLE-
MENTED IN THE SAME MANNER AS SUCH MAJOR CAPITAL IMPROVEMENT AS A FURTHER
SURCHARGE TO THE MAXIMUM RENT.
S 3. Paragraph 6 of subdivision c of section 26-511 of the administra-
tive code of the city of New York, as amended by chapter 116 of the laws
of 1997, is amended to read as follows:
(6) provides criteria whereby the commissioner may act upon applica-
tions by owners for increases in excess of the level of fair rent
increase established under this law provided, however, that such crite-
ria shall provide [(a)] as to hardship applications, for a finding that
the level of fair rent increase is not sufficient to enable the owner to
maintain approximately the same average annual net income (which shall
be computed without regard to debt service, financing costs or manage-
ment fees) for the three year period ending on or within six months of
the date of an application pursuant to such criteria as compared with
annual net income, which prevailed on the average over the period nine-
teen hundred sixty-eight through nineteen hundred seventy, or for the
first three years of operation if the building was completed since nine-
teen hundred sixty-eight or for the first three fiscal years after a
transfer of title to a new owner provided the new owner can establish to
the satisfaction of the commissioner that he or she acquired title to
the building as a result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite records for the fiscal
years nineteen hundred sixty-eight through nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in title and
further provided that the new owner can provide financial data covering
a minimum of six years under his or her continuous and uninterrupted
operation of the building to meet the three year to three year compar-
ative test periods herein provided[; and (b) as to completed building-
wide major capital improvements, for a finding that such improvements
are deemed depreciable under the Internal Revenue Code and that the cost
is to be amortized over a seven-year period, based upon cash purchase
price exclusive of interest or service charges]. Notwithstanding
anything to the contrary contained herein, no hardship increase granted
pursuant to this paragraph shall, when added to the annual gross rents,
as determined by the commissioner, exceed the sum of, (i) the annual
operating expenses, (ii) an allowance for management services as deter-
mined by the commissioner, (iii) actual annual mortgage debt service
(interest and amortization) on its indebtedness to a lending institu-
tion, an insurance company, a retirement fund or welfare fund which is
operated under the supervision of the banking or insurance laws of the
state of New York or the United States, and (iv) eight and one-half
percent of that portion of the fair market value of the property which
A. 2674--A 22
exceeds the unpaid principal amount of the mortgage indebtedness
referred to in subparagraph (iii) of this paragraph. Fair market value
for the purposes of this paragraph shall be six times the annual gross
rent. The collection of any increase in the stabilized rent for any
apartment pursuant to this paragraph shall not exceed six percent in any
year from the effective date of the order granting the increase over the
rent set forth in the schedule of gross rents, with collectability of
any dollar excess above said sum to be spread forward in similar incre-
ments and added to the stabilized rent as established or set in future
years;
S 4. Subdivision c of section 26-511 of the administrative code of the
city of New York is amended by adding two new paragraphs 6-b and 6-c to
read as follows:
(6-B) PROVIDES CRITERIA WHEREBY THE COMMISSIONER MAY ACT UPON APPLICA-
TION BY OWNERS FOR INCREASES IN EXCESS OF THE LEVEL OF FAIR RENT
INCREASE ESTABLISHED UNDER THIS LAW PROVIDED, HOWEVER, THAT SUCH CRITE-
RIA SHALL PROVIDE AS TO COMPLETED BUILDING-WIDE MAJOR CAPITAL IMPROVE-
MENTS, FOR A FINDING THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE
PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY
SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL ADJUSTMENT
OF THE LEVEL OF FAIR RENT PROVIDED FOR UNDER SUBDIVISION B OF SECTION
26-510 OF THIS LAW. THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE
AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR,
DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY
THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLO-
CABLE TO ANY APARTMENT, IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL
TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH
APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE
SAID SIX PERCENT SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE YEARS
AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY
ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD
HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY.
(6-C) COLLECTION OF SURCHARGES IN EXCESS OF THE LEVEL OF FAIR RENT
AUTHORIZED PURSUANT TO PARAGRAPH SIX-B OF THIS SUBDIVISION SHALL CEASE
WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT.
S 5. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
576 of the laws of 1974, constituting the emergency tenant protection
act of nineteen seventy-four, as amended by chapter 749 of the laws of
1990, is amended to read as follows:
(3) (I) COLLECTION OF SURCHARGES IN ADDITION TO THE LEGAL REGULATED
RENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH SHALL
CEASE WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL
IMPROVEMENT;
(II) there has been since January first, nineteen hundred seventy-four
a major capital improvement [required for the operation, preservation or
maintenance of the structure. An adjustment under this paragraph shall
be in an amount sufficient to amortize the cost of the improvements
pursuant to this paragraph over a seven-year period]; PROVIDED THAT THE
COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE
PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY
SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
A. 2674--A 23
AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL RENT
ADJUSTMENT AUTHORIZED BY THE RENT GUIDELINES BOARD UNDER THIS ACT. THE
SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE
COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF
ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN
SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT
IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE
MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET FORTH IN
THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE
CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT
TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE
TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMEN-
TIONED SIX PERCENT LIMITATION DID NOT APPLY, or
S 6. The second undesignated paragraph of paragraph (a) of subdivision
4 of section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as amended by chapter 21 of the laws
of 1962, clause 5 as amended by chapter 253 of the laws of 1993, is
amended to read as follows:
No application for adjustment of maximum rent based upon a sales price
valuation shall be filed by the landlord under this subparagraph prior
to six months from the date of such sale of the property. In addition,
no adjustment ordered by the commission based upon such sales price
valuation shall be effective prior to one year from the date of such
sale. Where, however, the assessed valuation of the land exceeds four
times the assessed valuation of the buildings thereon, the commission
may determine a valuation of the property equal to five times the equal-
ized assessed valuation of the buildings, for the purposes of this
subparagraph. The commission may make a determination that the valu-
ation of the property is an amount different from such equalized
assessed valuation where there is a request for a reduction in such
assessed valuation currently pending; or where there has been a
reduction in the assessed valuation for the year next preceding the
effective date of the current assessed valuation in effect at the time
of the filing of the application. Net annual return shall be the amount
by which the earned income exceeds the operating expenses of the proper-
ty, excluding mortgage interest and amortization, and excluding allow-
ances for obsolescence and reserves, but including an allowance for
depreciation of two per centum of the value of the buildings exclusive
of the land, or the amount shown for depreciation of the buildings in
the latest required federal income tax return, whichever is lower;
provided, however, that (1) no allowance for depreciation of the build-
ings shall be included where the buildings have been fully depreciated
for federal income tax purposes or on the books of the owner; or (2) the
landlord who owns no more than four rental units within the state has
not been fully compensated by increases in rental income sufficient to
offset unavoidable increases in property taxes, fuel, utilities, insur-
ance and repairs and maintenance, excluding mortgage interest and amor-
tization, and excluding allowances for depreciation, obsolescence and
reserves, which have occurred since the federal date determining the
maximum rent or the date the property was acquired by the present owner,
whichever is later; or (3) the landlord operates a hotel or rooming
house or owns a cooperative apartment and has not been fully compensated
by increases in rental income from the controlled housing accommodations
sufficient to offset unavoidable increases in property taxes and other
costs as are allocable to such controlled housing accommodations,
including costs of operation of such hotel or rooming house, but exclud-
A. 2674--A 24
ing mortgage interest and amortization, and excluding allowances for
depreciation, obsolescence and reserves, which have occurred since the
federal date determining the maximum rent or the date the landlord
commenced the operation of the property, whichever is later; or (4) the
landlord and tenant voluntarily enter into a valid written lease in good
faith with respect to any housing accommodation, which lease provides
for an increase in the maximum rent not in excess of fifteen per centum
and for a term of not less than two years, except that where such lease
provides for an increase in excess of fifteen per centum, the increase
shall be automatically reduced to fifteen per centum; or (5) the land-
lord and tenant by mutual voluntary written agreement agree to a
substantial increase or decrease in dwelling space or a change in the
services, furniture, furnishings or equipment provided in the housing
accommodations; provided that an owner shall be entitled to a rent
increase where there has been a substantial modification or increase of
dwelling space or an increase in the services, or installation of new
equipment or improvements or new furniture or furnishings provided in or
to a tenant's housing accommodation. The permanent increase in the maxi-
mum rent for the affected housing accommodation shall be one-fortieth of
the total cost incurred by the landlord in providing such modification
or increase in dwelling space, services, furniture, furnishings or
equipment, including the cost of installation, but excluding finance
charges provided further that an owner who is entitled to a rent
increase pursuant to this clause shall not be entitled to a further rent
increase based upon the installation of similar equipment, or new furni-
ture or furnishings within the useful life of such new equipment, or new
furniture or furnishings. The owner shall give written notice to the
commission of any such adjustment pursuant to this clause; or (6) there
has been, since March first, nineteen hundred fifty, an increase in the
rental value of the housing accommodations as a result of a substantial
rehabilitation of the building or housing accommodation therein which
materially adds to the value of the property or appreciably prolongs its
life, excluding ordinary repairs, maintenance and replacements; or (7)
(I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT AUTHORIZED PURSUANT TO
ITEM (II) OF THIS CLAUSE SHALL CEASE WHEN THE OWNER HAS RECOVERED THE
COST OF THE MAJOR CAPITAL IMPROVEMENT; (II) there has been since March
first, nineteen hundred fifty, a major capital improvement [required for
the operation, preservation or maintenance of the structure]; PROVIDED
THAT THE COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIA-
BLE UNDER THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED
FOR THE OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE
INCREASE PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A
MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPARATELY DESIGNATED
AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY OTHER ADJUSTMENT
TO THE MAXIMUM RENT. THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE
AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR,
DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY
THE NUMBER OF ROOMS IN SUCH APARTMENT; PROVIDED THAT THE SURCHARGE ALLO-
CABLE TO ANY APARTMENT IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO
SIX PERCENT OF THE MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH APART-
MENT AS SET FORTH IN THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE SAID
SIX PERCENT SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A
FURTHER SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE
YEAR PERIOD UNTIL THE TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE
BEEN IF THE AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY; or (8)
there has been since March first, nineteen hundred fifty, in structures
A. 2674--A 25
containing more than four housing accommodations, other improvements
made with the express consent of the tenants in occupancy of at least
seventy-five per centum of the housing accommodations, provided, howev-
er, that no adjustment granted hereunder shall exceed fifteen per centum
unless the tenants have agreed to a higher percentage of increase, as
herein provided; or (9) there has been, since March first, nineteen
hundred fifty, a subletting without written consent from the landlord or
an increase in the number of adult occupants who are not members of the
immediate family of the tenant, and the landlord has not been compen-
sated therefor by adjustment of the maximum rent by lease or order of
the commission or pursuant to the federal act; or (10) the presence of
unique or peculiar circumstances materially affecting the maximum rent
has resulted in a maximum rent which is substantially lower than the
rents generally prevailing in the same area for substantially similar
housing accommodations.
S 7. This act shall take effect immediately; provided that the amend-
ments to section 26-405 of the city rent and rehabilitation law made by
sections one and two of this act shall remain in full force and effect
only so 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 further that the amendments to section 26-511 of the
rent stabilization law of nineteen hundred sixty-nine made by sections
three and four 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, as from time to time amended; and
provided further that the amendment to section 6 of the emergency tenant
protection act of nineteen seventy-four made by section five of this act
shall expire on the same date as such act expires and shall not affect
the expiration of such act as provided in section 17 of chapter 576 of
the laws of 1974, as from time to time amended; and further provided
that the amendment to section 4 of the emergency housing rent control
law made by section six of this act shall expire on the same date as
such law expires and shall not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274 of the laws of
1946.
PART K
Section 1. Section 5 of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, is amended by adding a new subdivision d to read as follows:
D. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH THREE OR FIVE OF SUBDI-
VISION A OF THIS SECTION BUT SUBJECT TO ANY OTHER APPLICABLE EXCEPTIONS
IN SUCH SUBDIVISION, NOTHING SHALL PREVENT THE DECLARATION OF AN EMER-
GENCY PURSUANT TO SECTION THREE OF THIS ACT FOR RENTAL HOUSING ACCOMMO-
DATIONS LOCATED IN BUILDINGS WHICH WERE OWNED BY A COMPANY ESTABLISHED
UNDER ARTICLE 2 OF THE PRIVATE HOUSING FINANCE LAW, OTHER THAN A MUTUAL
COMPANY, BY REASON OF A VOLUNTARY DISSOLUTION PURSUANT TO SECTION 35 OF
SUCH LAW. THE PROVISION OF SUBDIVISION A OF SECTION NINE OF THIS ACT
SHALL NOT APPLY TO ANY HOUSING ACCOMMODATION WHICH BECAME SUBJECT TO
THIS ACT PURSUANT TO THIS SUBDIVISION.
S 2. This act shall take effect immediately and shall apply to housing
companies that dissolve before, on or after such date; provided, howev-
er, that the amendments to the emergency tenant protection act of nine-
teen seventy-four made by this act shall not affect the expiration of
A. 2674--A 26
such act as provided in section 17 of chapter 576 of the laws of 1974,
as amended and shall be deemed to expire therewith.
PART L
Section 1. Paragraph 12 of subdivision a of section 5 of section 4 of
chapter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by chapter 116 of
the laws of 1997, is amended to read as follows:
(12) upon issuance of an order by the division, housing accommodations
which are: (1) occupied by persons who have a total annual income [in
excess of one hundred seventy-five thousand dollars per annum], AS
DEFINED IN AND SUBJECT TO THE LIMITATIONS AND PROCESS SET FORTH IN
SECTION FIVE-A OF THIS ACT, THAT EXCEEDS THE DEREGULATION INCOME THRESH-
OLD, AS DEFINED IN SECTION FIVE-A OF THIS ACT in each of the two preced-
ing calendar years[, as defined in and subject to the limitations and
process set forth in section five-a of this act]; and (2) have a legal
regulated rent [of two thousand dollars or more per month] THAT EQUALS
OR EXCEEDS THE DEREGULATION RENT THRESHOLD, AS DEFINED IN SECTION FIVE-A
OF THIS ACT. Provided however, that this exclusion shall not apply to
housing accommodations which became or become subject to this act (a) by
virtue of receiving tax benefits pursuant to section four hundred twen-
ty-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 proper-
ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
law.
S 2. Section 5-a of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy-
four, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 5-a. High income rent [decontrol] DEREGULATION. (a) 1. For purposes
of this section, annual income shall mean the federal adjusted gross
income as reported on the New York state income tax return. Total annual
income means the sum of the annual incomes of all persons whose names
are recited as the tenant or co-tenant on a lease who occupy the housing
accommodation and all other persons that occupy the housing accommo-
dation as their primary residence on other than a temporary basis,
excluding bona fide employees of such occupants residing therein in
connection with such employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
of the real property law. In the case where a housing accommodation is
sublet, the annual income of the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS THREE HUNDRED THOUSAND DOLLARS.
FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND DOLLARS. FOR
PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE,
THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE FIRST
A. 2674--A 27
DAY OF OCTOBER EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY THE
CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, NEW
YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS ESTABLISHED THE
PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated MONTHLY rent
[is two thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREG-
ULATION RENT THRESHOLD may provide the tenant or tenants residing there-
in 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] THE DEREGULATION INCOME THRESHOLD 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 information other than whether the aforementioned
threshold has been exceeded. Such income certification form shall clear-
ly state that: (i) only tenants residing in housing accommodations which
had a legal regulated MONTHLY rent [of two thousand dollars or more per
month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD 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 appropriate. 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 seven-
ty-five thousand dollars] THE DEREGULATION INCOME THRESHOLD 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 providing that such
housing accommodation shall not be subject to the provisions of this act
upon the expiration 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.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants that such tenant or tenants named on the lease
must provide the division with such information as the division and the
department of taxation and finance shall require to verify whether the
total annual income exceeds [one hundred seventy-five thousand dollars]
THE DEREGULATION INCOME THRESHOLD in each such year. The division's
notification shall require the tenant or tenants to provide the informa-
tion to the division within sixty days of service upon such tenant or
A. 2674--A 28
tenants and shall include a warning in bold faced type that failure to
respond will result in an order being issued by the division providing
that such housing accommodations shall not be subject to the provisions
of this act.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order providing that such housing accommodation shall
not be subject to the provisions of this act upon expiration 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 sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order provid-
ing that such housing accommodation shall not be subject to the
provisions of this act upon the expiration [or] OF the current 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
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to paragraph twelve of subdivision a
of section five of this act.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 3. Paragraph (m) of subdivision 2 of section 2 of chapter 274 of the
laws of 1946, constituting the emergency housing rent control law, as
amended by chapter 116 of the laws of 1997, is amended to read as
follows:
(m) upon the issuance of an order of [decontrol] DEREGULATION by the
division, housing accommodations which: (1) are occupied by persons who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION TWO-A OF THIS LAW, in excess of [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
AS DEFINED IN SECTION TWO-A OF THIS LAW in each of the two preceding
calendar years[, as defined in and subject to the limitations and proc-
ess set forth in section two-a of this law]; and (2) have a maximum rent
[of two thousand dollars or more per month].
S 4. Section 2-a of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as added by chapter 253 of the laws
A. 2674--A 29
of 1993, subdivision (b) and paragraphs 1 and 2 of subdivision (c) as
amended and subdivision (e) as added by chapter 116 of the laws of 1997,
is amended to read as follows:
S 2-a. (a) 1. For purposes of this section, annual income shall mean
the federal adjusted gross income as reported on the New York state
income tax return. Total annual income means the sum of the annual
incomes of all persons who occupy the housing accommodation as their
primary residence on other than a temporary basis, excluding bona fide
employees of such occupants residing therein in connection with such
employment and excluding bona fide subtenants in occupancy pursuant to
the provisions of section two hundred twenty-six-b of the real property
law. In the case where a housing accommodation is sublet, the annual
income of the sublessor shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS THREE HUNDRED THOUSAND DOLLARS.
FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND DOLLARS. FOR
PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE,
THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE FIRST
DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY
THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS,
NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS ESTABLISHED
THE PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum MONTHLY rent [is two
thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION
RENT THRESHOLD 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] THE DEREGULATION INCOME THRESHOLD 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 had a maximum MONTHLY rent EQUAL TO OR IN EXCESS of [two thousand
dollars or more per month] THE DEREGULATION RENT THRESHOLD 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 appropriate. 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 DEREGULATION INCOME THRESHOLD,
the owner may file the certification with the state division of housing
and community renewal on or before June thirtieth of such year. Upon
A. 2674--A 30
filing such certification with the division, the division shall, within
thirty days after the filing, issue an order of [decontrol] DEREGULATION
providing that such housing 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.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants that such tenant or tenants must provide the divi-
sion with such information as the division and the department of taxa-
tion and finance shall require to verify whether the total annual income
exceeds [one hundred seventy-five thousand dollars] THE DEREGULATION
INCOME THRESHOLD in each such year. The division's notification shall
require the tenant or tenants to provide the information to the division
within sixty days of service upon such tenant or tenants and shall
include a warning in bold faced type that failure to respond will result
in an order of [decontrol] DEREGULATION being issued by the division for
such housing accommodation.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order of [decontrol] DEREGULATION providing that such
housing accommodation shall not be subject to the provisions of this law
as of the first day of March in the year next succeeding the filing of
the owner's petition with the division. 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 sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the last day on which the tenant or
tenants were required to provide the information required by such para-
graph. 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 sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
A. 2674--A 31
(d) This section shall apply only to paragraph (m) of subdivision two
of section two of this law.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 5. Subparagraph (j) of paragraph 2 of subdivision e of section
26-403 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:
(j) Upon the issuance of an order of [decontrol] DEREGULATION by the
division, housing accommodations which: (1) are occupied by persons who
have a total annual income, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS
AND PROCESS SET FORTH IN SECTION 26-403.1 OF THIS CHAPTER, in excess of
[one hundred seventy-five thousand dollars] THE DEREGULATION INCOME
THRESHOLD, AS DEFINED IN SECTION 26-403.1 OF THIS CHAPTER, 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 chap-
ter]; and (2) have a maximum rent [of two thousand dollars or more per
month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD, AS
DEFINED IN SECTION 26-403.1 OF THIS CHAPTER. 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.
S 6. Section 26-403.1 of the administrative code of the city of New
York, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 26-403.1 High income rent [decontrol] DEREGULATION. (a) 1. For
purposes of this section, annual income shall mean the federal adjusted
gross income as reported on the New York state income tax return. Total
annual income means the sum of the annual incomes of all persons who
occupy the housing accommodation as their primary residence other than
on a temporary basis, excluding bona fide employees of such occupants
residing therein in connection with such employment and excluding bona
fide subtenants in occupancy pursuant to the provisions of section two
hundred twenty-six-b of the real property law. In the case where a hous-
ing accommodation is sublet, the annual income of the sublessor shall be
considered.
2. DEREGULATION INCOME THRESHOLD MEANS THREE HUNDRED THOUSAND DOLLARS.
FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND DOLLARS. FOR
PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE,
THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE FIRST
DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY
A. 2674--A 32
THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS,
NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS ESTABLISHED
THE PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum rent [is two thou-
sand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION RENT
THRESHOLD 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] THE DEREGULATION INCOME THRESHOLD 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 maximum MONTHLY rent [of two thousand dollars or more per
month] THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD 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 appropriate. 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 seven-
ty-five thousand dollars] THE DEREGULATION INCOME THRESHOLD 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]
DEREGULATION providing that such housing 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.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants that such tenant or tenants must provide the divi-
sion with such information as the division and the department of taxa-
tion and finance shall require to verify whether the total annual income
exceeds [one hundred seventy-five thousand dollars] THE DEREGULATION
INCOME THRESHOLD in each such year. The division's notification shall
require the tenant or tenants to provide the information to the division
A. 2674--A 33
within sixty days of service upon such tenant or tenants and shall
include a warning in bold faced type that failure to respond will result
in an order of [decontrol] DEREGULATION being issued by the division for
such housing accommodation.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order of [decontrol] DEREGULATION providing that such
housing accommodation shall not be subject to the provisions of this law
as of the first day of March in the year next succeeding the filing of
the owner's petition with the division. 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 sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order of
[decontrol] DEREGULATION providing that such housing accommodation shall
not be subject to the provisions of this law as of the first day of
March in the year next succeeding the last day on which the tenant or
tenants were required to provide the information required by such para-
graph. 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 sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to subparagraph (j) of paragraph two
of subdivision e of section 26-403 of this [code] CHAPTER.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 7. 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, AS DEFINED IN AND SUBJECT TO THE LIMITA-
TIONS AND PROCESS SET FORTH IN SECTION 26-504.3 OF THIS CHAPTER, in
excess of [one hundred seventy-five thousand dollars per annum] THE
DEREGULATION INCOME THRESHOLD, AS DEFINED IN SECTION 26-504.3 OF THIS
CHAPTER, 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
A. 2674--A 34
of this chapter]; and (2) have a legal regulated MONTHLY rent [of two
thousand dollars or more per month] THAT EQUALS OR EXCEEDS THE DEREGU-
LATION RENT THRESHOLD, AS DEFINED IN SECTION 26-504.3 OF THIS CHAPTER.
Provided, however, that this exclusion shall not apply to housing accom-
modations 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 other-
wise 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 8. Section 26-504.3 of the administrative code of the city of New
York, as added by chapter 253 of the laws of 1993, subdivision (b) and
paragraphs 1 and 2 of subdivision (c) as amended and subdivision (e) as
added by chapter 116 of the laws of 1997, is amended to read as follows:
S 26-504.3 High income rent [decontrol] DEREGULATION. (a) 1. For
purposes of this section, annual income shall mean the federal adjusted
gross income as reported on the New York state income tax return. Total
annual income means the sum of the annual incomes of all persons whose
names are recited as the tenant or co-tenant on a lease who occupy the
housing accommodation and all other persons that occupy the housing
accommodation as their primary residence on other than a temporary
basis, excluding bona fide employees of such occupants residing therein
in connection with such employment and excluding bona fide subtenants in
occupancy pursuant to the provisions of section two hundred twenty-six-b
of the real property law. In the case where a housing accommodation is
sublet, the annual income of the tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease shall be considered.
2. DEREGULATION INCOME THRESHOLD MEANS THREE HUNDRED THOUSAND DOLLARS.
FOR PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE, THE DEREGULATION INCOME THRESHOLD SHALL BE ADJUSTED ANNUALLY ON
THE FIRST DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT
YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS
ESTABLISHED THE PRECEDING AUGUST.
3. DEREGULATION RENT THRESHOLD MEANS THREE THOUSAND DOLLARS. FOR
PROCEEDINGS COMMENCED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE,
THE DEREGULATION RENT THRESHOLD SHALL BE ADJUSTED ANNUALLY ON THE FIRST
DAY OF OCTOBER OF EACH YEAR FOR PROCEEDINGS IN EACH SUBSEQUENT YEAR BY
THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS,
NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS ESTABLISHED
THE PRECEDING AUGUST.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated rent [is two
thousand dollars or more per month] EQUALS OR EXCEEDS THE DEREGULATION
RENT THRESHOLD 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] THE DEREGULATION INCOME THRESHOLD 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-
A. 2674--A 35
tioned threshold has been exceeded. Such income certification form shall
clearly state that: (i) only tenants residing in housing accommodations
which have a legal regulated MONTHLY rent [of two thousand dollars or
more per month], THAT EQUALS OR EXCEEDS THE DEREGULATION RENT THRESHOLD
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 appropriate. 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 seven-
ty-five thousand dollars] THE DEREGULATION INCOME THRESHOLD 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 providing that such
housing accommodation shall not be subject to the provisions of this act
upon the expiration 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.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the certif-
ication returned by the tenant or tenants, the owner may, on or before
June thirtieth of such year, petition the state division of housing and
community renewal to verify, pursuant to section one hundred seventy-
one-b of the tax law, whether the total annual income exceeds [one
hundred seventy-five thousand dollars] THE DEREGULATION INCOME THRESHOLD
in each of the two preceding calendar years. Within twenty days after
the filing of such request with the division, the division shall notify
the tenant or tenants named on the lease that such tenant or tenants
must provide the division with such information as the division and the
department of taxation and finance shall require to verify whether the
total annual income exceeds [one hundred seventy-five thousand dollars]
THE DEREGULATION INCOME THRESHOLD in each such year. The division's
notification shall require the tenant or tenants to provide the informa-
tion to the division within sixty days of service upon such tenant or
tenants and shall include a warning in bold faced type that failure to
respond will result in an order being issued by the division providing
that such housing accommodation shall not be subject to the provisions
of this law.
2. If the department of taxation and finance determines that the total
annual income is in excess of [one hundred seventy-five thousand
dollars] THE DEREGULATION INCOME THRESHOLD in each of the two preceding
calendar years, the division shall, on or before November fifteenth of
such year, notify the owner and tenants of the results of such verifica-
tion. Both the owner and the tenants shall have thirty days within which
to comment on such verification results. Within forty-five days after
the expiration of the comment period, the division shall, where appro-
priate, issue an order providing that such housing accommodation shall
not be subject to the provisions of this law upon the expiration 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 sent to the owner.
A. 2674--A 36
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order provid-
ing that such housing accommodation shall not be subject to the
provisions of this law upon the expiration of the current 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
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to section 26-504.1 of this [code]
CHAPTER.
(e) Upon receipt of such order of [decontrol] DEREGULATION pursuant to
this section, an owner shall offer the housing accommodation subject to
such order to the tenant at a rent not in excess of the market rent,
which for the purposes of this section means a rent obtainable in an
arm's length transaction. Such rental offer shall be made by the owner
in writing to the tenant by certified and regular mail and shall inform
the tenant that such offer must be accepted in writing within ten days
of receipt. The tenant shall respond within ten days after receipt of
such offer. If the tenant declines the offer or fails to respond within
such period, the owner may commence an action or proceeding for the
eviction of such tenant.
S 9. Paragraph (b) of subdivision 3 of section 171-b of the tax law,
as amended by chapter 116 of the laws of 1997, is amended to read as
follows:
(b) The department, when requested by the division of housing and
community renewal, shall verify the total annual income of all persons
residing in housing accommodations as their primary residence subject to
rent regulation and shall notify the commissioner of the division of
housing and community renewal as may be appropriate whether the total
annual income exceeds [one hundred seventy-five thousand dollars per
annum] THE APPLICABLE DEREGULATION INCOME THRESHOLD in each of the two
preceding calendar years. No other information regarding the annual
income of such persons shall be provided.
S 10. This act shall take effect immediately, provided, however, that:
(a) the amendments to paragraph 12 of subdivision a of section 5 and
section 5-a of section 4 of the emergency tenant protection act of nine-
teen seventy-four made by sections one and two of this act, respective-
ly, shall expire on the same date as such act expires and shall not
affect the expiration of such act as provided in section 17 of chapter
576 of the laws of 1974;
(b) the amendments to paragraph (m) of subdivision 2 of section 2 and
section 2-a of the emergency housing rent control law made by sections
three and four of this act, respectively, shall expire on the same date
as such law expires and shall not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274 of the laws of
1946;
(c) the amendments to sections 26-403 and 26-403.1 of the city rent
and rehabilitation law made by sections five and six of this act,
respectively, shall remain in full 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
A. 2674--A 37
(d) the amendments to sections 26-504.1 and 26-504.3 of chapter 4 of
title 26 of the administrative code of the city of New York made by
sections seven and eight of this act, respectively, 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.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent
of the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through L of this act shall be
as specifically set forth in the last section of such Parts.