S. 5047 2
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. (a) 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.
(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 may provide the tenant or tenants
residing therein with an income certification form prepared by the divi-
sion 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 AVERAGE annual income is in
excess of one hundred seventy-five thousand dollars [in each of] FOR 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 rent of two thousand dollars or more per
month are required to complete the certification form; (ii) that]
tenants have protections available to them which are designed to prevent
harassment; [(iii) that] AND (II) 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 certif-
ication to the owner within thirty days after service upon the tenant or
tenants. In the event that the total AVERAGE annual income as certified
is in excess of one hundred seventy-five thousand dollars in each such
year, the owner may file the certification with the state division of
housing and community renewal on or before June thirtieth of such year.
Upon filing such certification with the division, the division shall,
within thirty days after the filing, issue an order 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.
NOTWITHSTANDING THE FOREGOING, THE PROVISIONS OF THIS SECTION SHALL NOT
APPLY TO ANY TENANT WHOSE RENT IS PAYABLE BY DIRECT GOVERNMENT HOUSING
SUBSIDY, ANY CURRENTLY EFFECTIVE RENT INCREASE EXEMPTION FOR SENIOR
CITIZENS OR PERSONS WITH DISABILITIES AUTHORIZED PURSUANT TO SECTION
FOUR HUNDRED SIXTY-SEVEN-B OR FOUR HUNDRED SIXTY-SEVEN-C OF THE REAL
PROPERTY TAX LAW, DIRECT PAYMENT OF RENT OR A TWO-PARTY CHECK ISSUED BY
A SOCIAL SERVICES DISTRICT OR THE DEPARTMENT OF FAMILY ASSISTANCE, OR
S. 5047 3
RENTAL ASSISTANCE THAT IS PAYABLE PURSUANT TO COURT ORDERS ISSUED IN
LITIGATION COMMENCED IN NINETEEN HUNDRED EIGHTY-SEVEN IN A PROCEEDING IN
WHICH THE AMOUNT OF SHELTER ALLOWANCE IS AT ISSUE ON BEHALF OF RECIPI-
ENTS OF AID TO DEPENDENT CHILDREN.
(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 AVERAGE annual income exceeds
one hundred seventy-five thousand dollars 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 AVERAGE annual income exceeds
one hundred seventy-five thousand dollars [in each such year] FOR THE
TWO PRECEDING CALENDAR YEARS. 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 being issued by the division providing that such housing accommo-
dations 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
[in each of] FOR 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 verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, 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. WHERE THE DEPARTMENT OF TAXATION AND FINANCE IS UNABLE TO
DETERMINE WHETHER THE TOTAL AVERAGE ANNUAL INCOME IS IN EXCESS OF ONE
HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE TWO PRECEDING CALENDAR
YEARS, IT SHALL BE PRESUMED THAT THE TOTAL AVERAGE ANNUAL INCOME OF SUCH
TENANT IS IN EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE
TWO PRECEDING CALENDAR YEARS AND THE PROCEDURES OF THIS PARAGRAPH SHALL
APPLY TO SUCH TENANT. THE DIVISION SHALL PROMULGATE REGULATIONS WHICH
SET FORTH THE MANNER IN WHICH SUCH A TENANT MAY REBUT SUCH PRESUMPTION.
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.
S. 5047 4
(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 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 by the division, hous-
ing accommodations which[: (1)] are occupied by persons who have a total
AVERAGE annual income in excess of one hundred seventy-five thousand
dollars [in each of] PER ANNUM FOR the two preceding calendar years, as
defined in and subject to the limitations and process 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
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) 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 resi-
dence 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.
(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] WHICH IS OCCUPIED BY A TENANT OR TENANTS
WHOM THE OWNER IN GOOD FAITH BELIEVES HAS A TOTAL AVERAGE ANNUAL INCOME
IN EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE TWO
PRECEDING CALENDAR YEARS 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 AVERAGE annual income is in excess of
one hundred seventy-five thousand dollars [in each of] FOR 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
S. 5047 5
clearly state that: (i) [only tenants residing in housing accommodations
which had a maximum rent of two thousand dollars or more per month are
required to complete the certification form; (ii) that] tenants have
protections available to them which are designed to prevent harassment;
[(iii) that] AND (II) tenants are not required to provide any informa-
tion regarding their income except that which is requested on the form
and may contain such other information the division deems appropriate.
The tenant or tenants shall return the completed certification to the
owner within thirty days after service upon the tenant or tenants. In
the event that the total AVERAGE annual income as certified is in excess
of one hundred seventy-five thousand dollars in each such year, the
owner may file the certification with the state division of housing and
community renewal on or before June thirtieth of such year. Upon filing
such certification with the division, the division shall, within thirty
days after the filing, issue an order of decontrol providing that such
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. NOTWITH-
STANDING THE FOREGOING, THE PROVISIONS OF THIS SECTION SHALL NOT APPLY
TO ANY TENANT WHOSE RENT IS PAYABLE BY DIRECT GOVERNMENT HOUSING SUBSI-
DY, ANY CURRENTLY EFFECTIVE RENT INCREASE EXEMPTION FOR SENIOR CITIZENS
OR PERSONS WITH DISABILITIES AUTHORIZED PURSUANT TO SECTION FOUR HUNDRED
SIXTY-SEVEN-B OR FOUR HUNDRED SIXTY-SEVEN-C OF THE REAL PROPERTY TAX
LAW, DIRECT PAYMENT OF RENT OR A TWO-PARTY CHECK ISSUED BY A SOCIAL
SERVICES DISTRICT OR THE DEPARTMENT OF FAMILY ASSISTANCE, OR RENTAL
ASSISTANCE THAT IS PAYABLE PURSUANT TO COURT ORDERS ISSUED IN LITIGATION
COMMENCED IN NINETEEN HUNDRED EIGHTY-SEVEN IN A PROCEEDING IN WHICH THE
AMOUNT OF SHELTER ALLOWANCE IS AT ISSUE ON BEHALF OF RECIPIENTS OF AID
TO DEPENDENT CHILDREN.
(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 AVERAGE annual income exceeds
one hundred seventy-five thousand dollars [in each of] FOR 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 division with such
information as the division and the department of taxation and finance
shall require to verify whether the total AVERAGE annual income exceeds
one hundred seventy-five thousand dollars in each such year. The divi-
sion'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 being issued by
the division for such housing accommodation.
2. If the department of taxation and finance determines that the total
AVERAGE annual income is in excess of one hundred seventy-five thousand
dollars [in each of] FOR 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 verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
S. 5047 6
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, issue an order of
decontrol 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. WHERE THE DEPARTMENT OF TAXATION AND FINANCE IS
UNABLE TO DETERMINE WHETHER THE TOTAL AVERAGE ANNUAL INCOME IS IN EXCESS
OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE TWO PRECEDING
CALENDAR YEARS, IT SHALL BE PRESUMED THAT THE TOTAL AVERAGE ANNUAL
INCOME OF SUCH TENANT IS IN EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS FOR THE TWO PRECEDING CALENDAR YEARS AND THE PROCEDURES OF THIS
PARAGRAPH SHALL APPLY TO SUCH TENANT. THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL SHALL PROMULGATE REGULATIONS WHICH SET FORTH THE MANNER IN
WHICH SUCH A TENANT MAY REBUT SUCH PRESUMPTION.
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 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 paragraph. 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 (m) of subdivision two
of section two of this law.
(e) Upon receipt of such order of decontrol 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. 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 AVERAGE annual income in excess of one hundred seven-
ty-five thousand dollars per annum for each of the two preceding calen-
dar years, as defined in and subject to the limitations and process set
forth in section 26-504.3 of this chapter[; and (2) have a legal regu-
lated rent of two thousand dollars or more per month]. Provided, howev-
er, that this exclusion shall not apply to housing accommodations which
became or become subject to this law (a) by virtue of receiving tax
benefits pursuant to section four hundred twenty-one-a or four hundred
S. 5047 7
eighty-nine of the real property tax law, except as otherwise provided
in subparagraph (i) of paragraph (f) of subdivision two of section four
hundred twenty-one-a of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law.
S 6. 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. (a) 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.
(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] WHICH IS OCCUPIED BY A TENANT OR
TENANTS WHOM THE OWNER IN GOOD FAITH BELIEVES HAS A TOTAL AVERAGE ANNUAL
INCOME IN EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE
TWO PRECEDING CALENDAR YEARS 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 AVERAGE annual income is in excess of
one hundred seventy-five thousand dollars [in each of] FOR 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 legal regulated rent of two thousand dollars or more per
month are required to complete the certification form; (ii) that]
tenants have protections available to them which are designed to prevent
harassment; [(iii) that] AND (II) 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 certif-
ication to the owner within thirty days after service upon the tenant or
tenants. In the event that the total AVERAGE annual income as certified
is in excess of one hundred seventy-five thousand dollars in each such
year, the owner may file the certification with the state division of
housing and community renewal on or before June thirtieth of such year.
Upon filing such certification with the division, the division shall,
within thirty days after the filing, issue an order providing that such
housing accommodation shall not be subject to the provisions of this
[act] LAW upon the expiration of the existing lease. A copy of such
S. 5047 8
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. NOTWITHSTANDING THE FOREGOING, THE PROVISIONS OF THIS
SECTION SHALL NOT APPLY TO ANY TENANT WHOSE RENT IS PAYABLE BY DIRECT
GOVERNMENT HOUSING SUBSIDY, ANY CURRENTLY EFFECTIVE RENT INCREASE
EXEMPTION FOR SENIOR CITIZENS OR PERSONS WITH DISABILITIES AUTHORIZED
PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN-B OR FOUR HUNDRED
SIXTY-SEVEN-C OF THE REAL PROPERTY TAX LAW, DIRECT PAYMENT OF RENT OR A
TWO-PARTY CHECK ISSUED BY A SOCIAL SERVICES DISTRICT OR THE DEPARTMENT
OF FAMILY ASSISTANCE, OR RENTAL ASSISTANCE THAT IS PAYABLE PURSUANT TO
COURT ORDERS ISSUED IN LITIGATION COMMENCED IN NINETEEN HUNDRED EIGHTY-
SEVEN IN A PROCEEDING IN WHICH THE AMOUNT OF SHELTER ALLOWANCE IS AT
ISSUE ON BEHALF OF RECIPIENTS OF AID TO DEPENDENT CHILDREN.
(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 AVERAGE annual income exceeds
one hundred seventy-five thousand dollars [in each of] FOR 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 AVERAGE
annual income exceeds one hundred seventy-five thousand dollars 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 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
AVERAGE annual income is in excess of one hundred seventy-five thousand
dollars [in each of] FOR 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 verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, 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. WHERE THE DEPARTMENT OF TAXATION AND FINANCE IS
UNABLE TO DETERMINE WHETHER THE TOTAL AVERAGE ANNUAL INCOME IS IN EXCESS
OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE TWO PRECEDING
CALENDAR YEARS, IT SHALL BE PRESUMED THAT THE TOTAL AVERAGE ANNUAL
INCOME OF SUCH TENANT IS IN EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS FOR THE TWO PRECEDING CALENDAR YEARS AND THE PROCEDURES OF THIS
PARAGRAPH SHALL APPLY TO SUCH TENANT. THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL SHALL PROMULGATE REGULATIONS WHICH SET FORTH THE MANNER IN
WHICH SUCH A TENANT MAY REBUT SUCH PRESUMPTION.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
S. 5047 9
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.
(e) Upon receipt of such order of decontrol 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. 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 by the division, hous-
ing accommodations which[: (1)] are occupied by persons who have a total
AVERAGE annual income in excess of one hundred seventy-five thousand
dollars per annum [in each of] FOR the two preceding calendar years, as
defined in and subject to the limitations and process set forth in
section 26-403.1 of this chapter[; and (2) have a maximum rent of two
thousand dollars or more per month]. Provided however, that this exclu-
sion 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 8. 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. (a) 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 hous-
ing 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 housing accommodation is
sublet, the annual income of the sublessor shall be considered.
(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] WHICH IS OCCUPIED BY A TENANT OR TENANTS
WHOM THE OWNER IN GOOD FAITH BELIEVES HAS A TOTAL AVERAGE ANNUAL INCOME
IN EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE TWO
PRECEDING CALENDAR YEARS 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
S. 5047 10
identify all persons referred to in subdivision (a) of this section and
shall certify whether the total AVERAGE annual income is in excess of
one hundred seventy-five thousand dollars [in each] FOR 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 rent of two thousand dollars or more per month are
required to complete the certification form; (ii) that] tenants have
protections available to them which are designed to prevent harassment;
[(iii) that] AND (II) tenants are not required to provide any informa-
tion regarding their income except that which is requested on the form
and may contain such other information the division deems appropriate.
The tenant or tenants shall return the completed certification to the
owner within thirty days after service upon the tenant or tenants. In
the event that the total AVERAGE annual income as certified is in excess
of one hundred seventy-five thousand dollars in each such year, the
owner may file the certification with the state division of housing and
community renewal on or before June thirtieth of such year. Upon filing
such certification with the division, the division shall, within thirty
days after the filing, issue an order of decontrol providing that such
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. NOTWITH-
STANDING THE FOREGOING, THE PROVISIONS OF THIS SECTION SHALL NOT APPLY
TO ANY TENANT WHOSE RENT IS PAYABLE BY DIRECT GOVERNMENT HOUSING SUBSI-
DY, ANY CURRENTLY EFFECTIVE RENT INCREASE EXEMPTION FOR SENIOR CITIZENS
OR PERSONS WITH DISABILITIES AUTHORIZED PURSUANT TO SECTION FOUR HUNDRED
SIXTY-SEVEN-B OR FOUR HUNDRED SIXTY-SEVEN-C OF THE REAL PROPERTY TAX
LAW, DIRECT PAYMENT OF RENT OR A TWO-PARTY CHECK ISSUED BY A SOCIAL
SERVICES DISTRICT OR THE DEPARTMENT OF FAMILY ASSISTANCE, OR RENTAL
ASSISTANCE THAT IS PAYABLE PURSUANT TO COURT ORDERS ISSUED IN LITIGATION
COMMENCED IN NINETEEN HUNDRED EIGHTY-SEVEN IN A PROCEEDING IN WHICH THE
AMOUNT OF SHELTER ALLOWANCE IS AT ISSUE ON BEHALF OF RECIPIENTS OF AID
TO DEPENDENT CHILDREN.
(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 AVERAGE annual income exceeds
one hundred seventy-five thousand dollars [in each of] FOR 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 division with such
information as the division and the department of taxation and finance
shall require to verify whether the total AVERAGE annual income exceeds
one hundred seventy-five thousand dollars in each such year. The divi-
sion's notification shall require the tenant or tenants to provide the
information to the division within sixty days of service upon such
S. 5047 11
tenant or tenants and shall include a warning in bold faced type that
failure to respond will result in an order of decontrol being issued by
the division for such housing accommodation.
2. If the department of taxation and finance determines that the total
AVERAGE annual income is in excess of one hundred seventy-five thousand
dollars [in each of] FOR 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 verification. Both the owner and the
tenants shall have thirty days within which to comment on such verifica-
tion results. Within forty-five days after the expiration of the
comment period, the division shall, where appropriate, issue an order of
decontrol 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. WHERE THE DEPARTMENT OF TAXATION AND FINANCE IS
UNABLE TO DETERMINE WHETHER THE TOTAL AVERAGE ANNUAL INCOME IS IN EXCESS
OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS FOR THE TWO PRECEDING
CALENDAR YEARS, IT SHALL BE PRESUMED THAT THE TOTAL AVERAGE ANNUAL
INCOME OF SUCH TENANT IS IN EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS FOR THE TWO PRECEDING CALENDAR YEARS AND THE PROCEDURES OF THIS
PARAGRAPH SHALL APPLY TO SUCH TENANT. THE DIVISION OF HOUSING AND COMMU-
NITY RENEWAL SHALL PROMULGATE REGULATIONS WHICH SET FORTH IN THE MANNER
IN WHICH SUCH A TENANT MAY REBUT SUCH PRESUMPTION.
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 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 paragraph. 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.
(e) Upon receipt of such order of decontrol 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. This act shall take effect immediately and shall first apply to
income certification forms provided by owners to tenants on or after
January 1, 2012, provided that:
(a) the amendments to the emergency tenant protection act of nineteen
seventy-four made by sections one and two of this act shall expire on
S. 5047 12
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 the emergency housing rent control law 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 in subdivision 2 of section 1 of chapter 274 of the laws of
1946;
(c) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections five and 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 under section 26-520 of such law; and
(d) the amendments to the city rent and rehabilitation law made by
sections seven and eight 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.