S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2322

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 14, 2013
                               ___________

Introduced  by  M.  of A. KOLB, FITZPATRICK, RAIA, TEDISCO, MONTESANO --
  Multi-Sponsored by -- M. of A. BARCLAY, CROUCH, OAKS, TENNEY  --  read
  once and referred to the Committee on Housing

AN  ACT to amend the emergency housing rent control law, the administra-
  tive code of the city of New York and the emergency tenant  protection
  act  of  nineteen  seventy-four, in relation to eliminating rent regu-
  lation protections for certain high income tenants; to amend the emer-
  gency housing rent control  law,  the  local  emergency  housing  rent
  control  act, the emergency tenant protection act of nineteen seventy-
  four and the administrative code of the city of New York, in  relation
  to  the  deregulation  of  rent-stabilized housing accommodations upon
  vacancy and to repeal certain provisions of the emergency housing rent
  control law, the administrative code of the city of New York  and  the
  emergency  tenant  protection act of nineteen seventy-four relating to
  eliminating  rent  regulation  protections  for  certain  high  income
  tenants

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. 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is REPEALED.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 2. Section 2-a of chapter 274 of the laws of 1946, constituting  the
emergency  housing  rent control law, as amended by section 32 of part B
of chapter 97 of the laws of 2011, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05354-03-3
              

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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 total annual income equal to
one hundred seventy-five thousand dollars in each of the  two  preceding
calendar years for proceedings commenced before July first, two thousand
eleven.  For  proceedings commenced on or after July first, two thousand
[eleven] TWELVE, the deregulation income threshold means the total annu-
al income equal  to  [two  hundred]  ONE  HUNDRED  TWENTY-FIVE  thousand
dollars in each of the two preceding calendar years.
  [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
proceedings commenced prior to July  first,  two  thousand  eleven.  For
proceedings  commenced  on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars.]
  (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 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 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  aforementioned  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 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]  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 annual income as  certified  is  in
excess of the deregulation income threshold in each of the two preceding
calendar  years,  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  divi-
sion  shall,  within  thirty  days  after  the filing, issue an order of
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 the dereg-

A. 2322                             3

ulation  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 division with such information as the division
and the department of taxation  and  finance  shall  require  to  verify
whether  the total annual income exceeds the deregulation income thresh-
old in each of the two preceding calendar years. The division's  notifi-
cation 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 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 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 verification. 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 appropriate, issue an order of 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
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 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  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. Section 26-403.1 of the administrative code of the  city  of  New
York,  as  amended  by section 34 of part B of chapter 97 of the laws of
2011, is amended to read as follows:
  S 26-403.1 High income rent deregulation. (a) 1. For purposes of  this
section,  annual  income shall mean the federal adjusted gross income as

A. 2322                             4

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.
  2.  Deregulation  income  threshold means total annual income equal to
one hundred seventy-five thousand dollars in each of the  two  preceding
calendar  years for proceedings commenced prior to July first, two thou-
sand eleven. For proceedings commenced on or after July first, two thou-
sand [eleven] TWELVE, the deregulation income threshold means the  total
annual  income  equal  to [two hundred] ONE HUNDRED TWENTY-FIVE thousand
dollars in each of the two preceding calendar years.
  [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
proceedings  commenced  before  July  first,  two  thousand  eleven. For
proceedings commenced on or after July first, two thousand  eleven,  the
deregulation rent threshold means two thousand five hundred dollars.]
  (b) On or before the first day of May in each calendar year, the owner
of  each  housing  accommodation  [for  which the maximum rent 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 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  aforementioned  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 that equals or exceeds the deregulation rent thres-
hold are required to complete the certification form; (ii) that] tenants
have protections available to them which are designed to prevent harass-
ment;  [(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 appropri-
ate. The tenant or tenants shall return the completed  certification  to
the  owner  within thirty days after service upon the tenant or tenants.
In the event that the total annual income as certified is in  excess  of
the  deregulation income threshold in each of the two preceding calendar
years, 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 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

A. 2322                             5

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 the dereg-
ulation 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 division with such information as the division
and the department of taxation  and  finance  shall  require  to  verify
whether  the total annual income exceeds the deregulation income thresh-
old in each of the two preceding calendar years. The division's  notifi-
cation 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 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 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 verification. 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 appropriate, issue an order of 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
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 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 chapter.
  (e)  Upon  receipt  of  such  order  of  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.

A. 2322                             6

  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  26-504.1 of the administrative code of the city of New
York, as amended by section 35 of part B of chapter 97 of  the  laws  of
2011, 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 the deregulation  income  threshold,  as  defined  in  section
26-504.3 of this chapter, for each of the two preceding calendar years[;
and  (2)  have a legal regulated monthly rent that equals or exceeds the
deregulation rent threshold, as defined  in  section  26-504.3  of  this
chapter].  Provided,  however,  that  this  exclusion shall not apply to
housing accommodations which became or become subject to this law (a) by
virtue of receiving tax benefits pursuant to section four hundred  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  6.  Section  26-504.2 of the administrative code of the city of New
York is REPEALED.
  S 7. Section 26-504.3 of the administrative code of the  city  of  New
York,  as  amended  by section 36 of part B of chapter 97 of the laws of
2011, is amended to read as follows:
  S 26-504.3 High income rent 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 total annual income equal to
one hundred seventy-five thousand dollars in each of the  two  preceding
calendar years for proceedings commenced before July first, two thousand
eleven.  For  proceedings commenced on or after July first, two thousand
[eleven] TWELVE, the deregulation income threshold means the total annu-
al income equal  to  [two  hundred]  ONE  HUNDRED  TWENTY-FIVE  thousand
dollars in each of the two preceding calendar years.
  [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
proceedings commenced  before  July  first,  two  thousand  eleven.  For
proceedings  commenced  on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars.]
  (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 equals
or exceeds the deregulation rent threshold] may provide  the  tenant  or
tenants  residing  therein with an income certification form prepared by

A. 2322                             7

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 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  aforementioned  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, 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] 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  divi-
sion 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  certi-
fied  is  in  excess of the deregulation income threshold in each of the
two preceding calendar years, 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  divi-
sion,  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 the dereg-
ulation 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  the  deregulation
income  threshold in each of the two preceding calendar years. 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 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 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 verification. Both the owner and the tenants shall  have
thirty days within which to comment on such verification results. Within

A. 2322                             8

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.
  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 chapter.
  (e) Upon receipt of  such  order  of  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 8. 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  9.  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  amended  by section 30 of part B of chapter 97 of the laws of
2011, is amended to read as follows:
  S 5-a. High income rent 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 total annual income equal to
one hundred seventy-five thousand dollars in each of the  two  preceding
calendar years for proceedings commenced before July first, two thousand
eleven.  For  proceedings commenced on or after July first, two thousand
[eleven] TWELVE, the deregulation income threshold means the total annu-

A. 2322                             9

al income equal  to  [two  hundred]  ONE  HUNDRED  TWENTY-FIVE  thousand
dollars in each of the two preceding calendar years.
  [3.  Deregulation  rent  threshold  means  two  thousand  dollars  for
proceedings commenced  before  July  first,  two  thousand  eleven.  For
proceedings  commenced  on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars.]
  (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  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  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  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] 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  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 the deregulation income threshold in  each  of
the  two  preceding calendar years, 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 the dereg-
ulation  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  informa-
tion  as  the  division and the department of taxation and finance shall
require to verify whether the total annual income  exceeds  the  deregu-
lation income threshold in each of 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

A. 2322                            10

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 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 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 verification. 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  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.
  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 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  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 10. Paragraph (i) 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 576 of the laws of 1974, is  amended  to  read  as
follows:
  (i)  housing  accommodations  which  become  vacant  ON AND AFTER JUNE
SIXTEENTH, TWO THOUSAND THIRTEEN, provided, however, that this exemption
shall not apply or become effective where the commission  determines  or
finds that the housing accommodations 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 accommodations; [and further provided that housing  accommo-
dations  as  to  which a housing emergency has been declared pursuant to
the emergency tenant protection act of nineteen  seventy-four  shall  be

A. 2322                            11

subject  to the provisions of such act for the duration of such emergen-
cy;] or
  S  11. The second undesignated paragraph of 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,
is amended to read as follows:
  Notwithstanding any local law  or  ordinance,  housing  accommodations
which  [became]  BECOME vacant on or after [July first, nineteen hundred
seventy-one or which hereafter become vacant] JUNE SIXTEENTH, TWO  THOU-
SAND  THIRTEEN  shall  be  [subject  to  the provisions of the emergency
tenant protection act of nineteen seventy-four] EXEMPT  FROM  REGULATION
AND  CONTROL,  provided,  however, that this [provision] EXEMPTION shall
not apply or become effective with  respect  to  housing  accommodations
which,  by  local  law  or ordinance, are made directly subject to regu-
lation and control by a city housing rent agency and such agency  deter-
mines or finds that the housing accommodations 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 accommodations.  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, nine-
teen 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 immediate family occupies the dwelling with the
tenant prior to the transfer of title and possession  for  a  continuous
period of two years.
  S  12.  Paragraph  (h) of subdivision 10 of section 1 of chapter 21 of
the laws of 1962, constituting the local emergency housing rent  control
act,  as  amended by chapter 576 of the laws of 1974, is amended to read
as follows:
  (h) Any tenant who has vacated his housing accommodations 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 accommodations may, within  ninety  days  after
vacating, apply for a determination that the housing accommodations were
vacated as a result of such conduct, and may, within one year after such
determination,  institute  a civil action against the landlord by reason
of such conduct. Application for such determination may be made  to  the
[city  housing rent agency with respect to housing accommodations which,
by local law or ordinance, are made directly subject to  regulation  and
control  by  such agency. For all other housing accommodadations subject
to regulation and control pursuant to the New York city rent  stabiliza-

A. 2322                            12

tion  law  of nineteen hundred sixty-nine, application for such determi-
nation may be made to the New York city conciliation and appeals  board.
For  the  purpose  of  making and enforcing any determination of the New
York  city  conciliation  and  appeals  board  as  herein  provided, the
provisions of sections seven, eight and ten, whenever they refer to  the
city  housing rent agency, shall be deemed to refer to such board] STATE
DIVISION OF HOUSING AND COMMUNITY RENEWAL. In such action  the  landlord
shall  be  liable to the tenant for three times the damages sustained on
account of such conduct plus reasonable attorney's  fees  and  costs  as
determined  by  the  court. In addition to any other damages the cost of
removal of property shall be a lawful measure of damages.
  S 13. Subdivision a of section 5 of section 4 of chapter  576  of  the
laws  of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four, is amended by adding a new paragraph 3-a to  read  as
follows:
  (3-A)  HOUSING  ACCOMMODATIONS  WHICH  BECOME  VACANT ON OR AFTER JUNE
SIXTEENTH, TWO THOUSAND THIRTEEN, PROVIDED, HOWEVER, THAT THIS EXCEPTION
SHALL NOT APPLY TO OR BECOME EFFECTIVE WITH RESPECT TO HOUSING  ACCOMMO-
DATIONS 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 REQUIRED SERVICES)
WHICH INTERFERED WITH OR DISTURBED OR WAS INTENDED TO INTERFERE  IN  HIS
OR HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS.
  S  14.  Section  26-504  of the administrative code of the city of New
York is amended by adding a new subdivision d to read as follows:
  D. NOTWITHSTANDING ANY OF THE PROVISIONS OF THIS SECTION OR  TITLE  OR
ANY  OTHER  PROVISIONS  OF  LAW, THIS LAW SHALL NOT APPLY TO ANY HOUSING
ACCOMMODATION WHICH BECOMES VACANT ON OR AFTER JUNE SIXTEENTH, TWO THOU-
SAND THIRTEEN PROVIDED, HOWEVER, THAT THIS EXCEPTION SHALL NOT APPLY  TO
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 REQUIRED SERVICES) WHICH INTERFER-
ED  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.
  S 15. This act shall take effect immediately; provided that the amend-
ments to section 26-403.1 of the city rent and rehabilitation  law  made
by  section three 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;  and
provided  that the amendments to sections 26-504.1, 26-504.3, and 26-504
of chapter 4 of title 26 of the administrative code of the city  of  New
York made by sections five, seven and fourteen 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;
and provided that the amendments to sections 5-a and 5 of the  emergency
tenant protection act of nineteen seventy-four made by sections nine and
thirteen  of  this  act,  respectively, 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
that the amendments to sections 2-a and 2 of the emergency housing  rent
control  law  made  by  sections  two and ten of this act, respectively,

A. 2322                            13

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 provided that the amendments to the
local  emergency housing rent control act made by section eleven 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 paragraph (h) of subdivision 10 of section 1 of the  local
emergency  housing  rent  control act made by section twelve of this act
shall not affect the expiration of certain provisions of such  paragraph
(h)  made  by  section  3  of  chapter 576 of the laws of 1974 and shall
expire when such chapter 576 of the laws of 1974 expires.