NY State Senate Bill 2013-S4073A

Senate Bill S4073A

2013-2014 Legislative Session

Provides for high income decontrol of housing accommodations based upon the average annual income of the tenants for the previous 2 years

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 28, 2014	print number 4073a
Jan 28, 2014	amend and recommit to housing, construction and community development
Jan 08, 2014	referred to housing, construction and community development
Mar 07, 2013	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2013-S4073 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Housing Rent Control Law
Laws Affected:: Amd §§2 & 2-a, Emerg Hous Rent Cont L; amd §§5 & 5-a, Emerg Ten Prot Act of 1974; amd §§26-403, 26-403.1, 26-504.1 & 26-504.3, NYC Ad Cd
Versions Introduced in 2011-2012 Legislative Session:: S6473

2013-S4073 - Summary

Provides for high income decontrol of rent regulated housing accommodations based upon the average annual income of the tenants for the previous two years.

2013-S4073 - Sponsor Memo

                                BILL NUMBER:S4073

TITLE OF BILL:  An act to amend the emergency housing rent control
law, the emergency tenant protection act of nineteen seventy-four and
the administrative code of the city of New York, in relation to high
income decontrol of rent regulated housing accommodations

PURPOSE:

This bill would provide for a two year averaging of a tenant's annual
income in determining whether the tenant is eligible for a rent
regulated apartment.

SUMMARY OF PROVISIONS:

Changes made to rent regulation in 2011 increased the amount of annual
income which a tenant may earn in order to qualify for a rent
regulated apartment. Currently, the law requires that a tenant have a
federal adjusted gross income of $200,000 for each of the prior two
years. This bill would require that the determination be based upon
adjusted gross income for the prior two years, not $200,000 for each
of the prior two years.

JUSTIFICATION:

In 1993, the State Legislature enacted two forms of rent deregulation.

That law, as amended by subsequent legislation in 1997 and 2011,
provides that (1) for in-place tenants, an apartment can be
deregulated where the legal regulated rent for the apartment exceeds
$2,500 per month and the income for the tenant exceeds $200,000 and
(2) for apartments after vacancy, an apartment can be deregulated
where the legal regulated rent for the apartment exceeds $2,500 per
month. This legislation addresses only the first form of deregulation,
known as high-income/high rent deregulation; the second form, the
so-called high rent/vacancy deregulation, is the much more commonly
used deregulation mechanism and is unaffected by this legislation.

One of the fundamental failings of rent regulation is that there is no
correlation between a tenant's rent regulated status and their
financial status. The rent regulatory system is, for all practical
purposes, a lottery, premised not upon need but upon the mere
fortuitousness of being in the right place at the right time. Nowhere
is this failing truer than in the context of high-income/high-rent
deregulation.

The high-rent/high-income deregulation process occurs when the legal
regulated rent of an in-place tenant exceeds $2,500. Briefly stated,
when a tenant's rent pierces that threshold, a property owner can
commence a process whereby the State Department of Taxation and
Finance examines its records to determine whether the tenant's income
exceeds $200,000 for each of the prior two years. If the income
exceeds that threshold, the tenant's apartment becomes deregulated.
If their income does not exceed the threshold, the apartment remains
regulated, at least until the process is used again in the future.

Some high wage earners have been able to take advantage of rent
regulation by averting income on their tax return in one year and


purposely accumulating more income which is well above the high income
limit in the succeeding year, or vice versa. This bill will stem this
practice. It will ensure that high-income tenants do not circumvent
the intent of the deregulation provisions of the rent laws by
providing a more realistic snapshot of income over a 2 year period.

LEGISLATIVE HISTORY:

S.6473/2012-Senate Rules Committee

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

2013-S4073 - Bill Text download pdf

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

                                  4073

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 7, 2013
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to  amend the emergency housing rent control law, the emergency
  tenant protection act of nineteen seventy-four and the  administrative
  code  of the city of New York, in relation to high income decontrol of
  rent regulated housing accommodations

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

  Section 1. Subparagraph 1 of 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 section 31 of part B of chapter 97 of
the laws of 2011, is amended to read as follows:
  (1) are occupied by persons who have a total AVERAGE annual income, as
defined in and subject to the  limitations  and  process  set  forth  in
section  two-a of this law, in excess of the deregulation income thresh-
old as defined in section two-a of this law [in each  of]  FOR  the  two
preceding calendar years;
  S  2.  Subdivision  (b)  and  paragraphs 1 and 2 of subdivision (c) of
section 2-a of chapter 274 of the laws of 1946, constituting  the  emer-
gency  housing  rent  control law, as amended by section 32 of part B of
chapter 97 of the laws of 2011, are amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07111-01-3

S. 4073                             2

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 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  the deregulation income threshold [in each of] FOR 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.
  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  certification
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
the  deregulation  income  threshold  [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 the  deregulation
income  threshold [in each of] 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 of deregulation 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 the deregulation income  threshold
[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 deregu-
lation 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

S. 4073                             3

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.
  S  3. Paragraph 12 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, as amended by section 29 of
part B of chapter 97 of the laws of 2011, 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  AVERAGE  annual
income  as  defined  in  and  subject to the limitations and process set
forth in section five-a of this act in excess of the deregulation income
threshold, as defined in section five-a of this act, [in  each  of]  FOR
the  two  preceding  calendar years; and (2) have a legal regulated rent
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 twenty-one-a or four hundred eighty-nine of the real prop-
erty tax law, except as otherwise provided in subparagraph (i) of  para-
graph (f) of subdivision two of section four hundred twenty-one-a of the
real property tax law, or (b) by virtue of article seven-C of the multi-
ple dwelling law.
  S  4.  Subdivisions (b) and (c) of 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, are amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the 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 AVERAGE  annual  income
is  in  excess of the deregulation income threshold [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 monthly rent that equals or  exceeds  the  deregu-
lation  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 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 the deregulation income threshold [in each of] FOR 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

S. 4073                             4

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 AVERAGE annual income exceeds
the deregulation income threshold [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 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  the  deregulation  income  threshold  [in  each of] 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
AVERAGE annual income is in excess of the deregulation income  threshold
[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.
  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.
  S 5. Clause 1 of 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 section 33 of part B of chapter 97 of the laws  of  2011,  is
amended to read as follows:
  (1) are occupied by persons who have a total AVERAGE 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 the  deregulation  income

S. 4073                             5

threshold,  as defined in section 26-403.1 of this chapter, [in each of]
FOR the two preceding calendar years; and
  S  6.  Subdivision  (b)  and  paragraphs 1 and 2 of subdivision (c) of
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, are
amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for  which  the  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 AVERAGE annual income
is in excess of the deregulation income threshold [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 maximum monthly rent that equals  or  exceeds  the  deregu-
lation  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 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 the deregulation income threshold [in each of] FOR 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 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.
  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  certification
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
the  deregulation  income  threshold  [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 the  deregulation
income  threshold [in each of] FOR the two preceding calendar years. The
division's notification shall require the tenant or tenants  to  provide

S. 4073                             6

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
AVERAGE  annual income is in excess of the deregulation income threshold
[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 deregu-
lation 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.
  S 7. 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 AVERAGE annual income, as defined in and subject to the
limitations 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
twenty-one-a  or  four hundred eighty-nine of the real property tax law,
except as otherwise provided in subparagraph (i)  of  paragraph  (f)  of
subdivision two of section four hundred twenty-one-a of the real proper-
ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
law.
  S  8.  Subdivision  (b)  and  paragraphs 1 and 2 of subdivision (c) of
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, are
amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the 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
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 the deregulation income threshold [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. 4073                             7

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 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 AVERAGE annual income  as
certified is in excess of the deregulation income threshold [in each of]
FOR  the  two  preceding  calendar years, the owner may file the certif-
ication 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  exist-
ing  lease.   A copy of such order shall be mailed by regular and certi-
fied mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be mailed to the owner.
  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  certification
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
the  deregulation  income  threshold  [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 the deregulation income threshold  [in  each  of]  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-
dation 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 the deregulation income  threshold
[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.
  S  9. This act shall take effect immediately and shall apply to income
certification forms served on and after January 1, 2014; provided that:

S. 4073                             8

  (a) the amendments to the emergency housing rent control law  made  by
sections  one  and 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
in subdivision 2 of section 1 of chapter 274 of the laws of 1946;
  (b)  the amendments to the emergency tenant protection act of nineteen
seventy-four made by sections three and 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;
  (c) the amendments to the city rent and  rehabilitation  law  made  by
sections  five and six 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
  (d) the amendments to chapter 4 of title 26 of the administrative code
of  the  city  of  New York made by sections seven and eight 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.

2013-S4073A (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Emergency Housing Rent Control Law
Laws Affected:: Amd §§2 & 2-a, Emerg Hous Rent Cont L; amd §§5 & 5-a, Emerg Ten Prot Act of 1974; amd §§26-403, 26-403.1, 26-504.1 & 26-504.3, NYC Ad Cd
Versions Introduced in 2011-2012 Legislative Session:: S6473

2013-S4073A (ACTIVE) - Summary

Provides for high income decontrol of rent regulated housing accommodations based upon the average annual income of the tenants for the previous two years.

2013-S4073A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4073A

TITLE OF BILL:  An act to amend the emergency housing rent control law,
the emergency tenant protection act of nineteen seventy-four and the
administrative code of the city of New York, in relation to high income
decontrol of rent regulated housing accommodations

PURPOSE:  This bill would provide for a two year averaging of a tenant's
annual income in determining whether the tenant is eligible for a rent
regulated apartment.

SUMMARY OF PROVISIONS:  Changes made to rent regulation in 2011
increased the amount of annual income which a tenant may earn in order
to qualify for a rent regulated apartment. Currently, the law requires
that a tenant have a federal adjusted gross income of $200,000 for each
of the prior two years. This bill would require that the determination
be based upon adjusted gross income for the prior two years, not
$200,000 for each of the prior two years.

JUSTIFICATION:  In 1993, the State Legislature enacted two forms of rent
deregulation.  That law, as amended by subsequent legislation in 1997
and 2011, provides that (1) for in-place tenants, an apartment can be
deregulated where the legal regulated rent for the apartment exceeds
$2,500 per month and the income for the tenant exceeds $200,000 and (2)
for apartments after vacancy, an apartment can be deregulated where the
legal regulated rent for the apartment exceeds $2,500 per month. This

legislation addresses only the first form of deregulation, known as
high-income/high rent deregulation; the second form, the so-called high
rent/vacancy deregulation, is the much more commonly used deregulation
mechanism and is unaffected by this legislation.

One of the fundamental failings of rent regulation is that there is no
correlation between a tenant's rent regulated status and their financial
status. The rent regulatory system is, for all practical purposes, a
lottery, premised not upon need but upon the mere fortuitousness of
being in the right place at the right time. Nowhere is this failing
truer than in the context of high-income/high-rent deregulation.

The high-rent/high-income deregulation process occurs when the legal
regulated rent of an in-place tenant exceeds $2,500. Briefly stated,
when a tenant's rent pierces that threshold, a property owner can
commence a process whereby the State Department of Taxation and Finance
examines its records to determine whether the tenant's income exceeds
$200,000 for each of the prior two years. If the income exceeds that
threshold, the tenant's apartment becomes deregulated.  If their income
does not exceed the threshold, the apartment remains regulated, at least
until the process is used again in the future.

Some high wage earners have been able to take advantage of rent regu-
lation by averting income on their tax return in one year and purposely
accumulating more income which is well above the high income limit in
the succeeding year, or vice versa. This bill will stem this practice.

It will ensure that high-income tenants do not circumvent the intent of
the deregulation provisions of the rent laws by providing a more realis-
tic snapshot of income over a 2 year period.

LEGISLATIVE HISTORY:  2013: S.4073 Referred to Housing, Construction and
Community Development 2012: S.6473 Referred to Senate Rules Committee

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

2013-S4073A (ACTIVE) - Bill Text download pdf

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

                                 4073--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 7, 2013
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  recommitted  to  the Committee on Housing,
  Construction and Community Development in accordance with Senate  Rule
  6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the emergency housing rent control  law,  the  emergency
  tenant  protection act of nineteen seventy-four and the administrative
  code of the city of New York, in relation to high income decontrol  of
  rent regulated housing accommodations

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

  Section 1. Subparagraph 1 of 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 section 31 of part B of  chapter  97  of
the laws of 2011, is amended to read as follows:
  (1) are occupied by persons who have a total AVERAGE annual income, as
defined  in  and  subject  to  the  limitations and process set forth in
section two-a of this law, in excess of the deregulation income  thresh-
old  as  defined  in  section two-a of this law [in each of] FOR the two
preceding calendar years;
  S 2. Subdivision (b) and paragraphs 1 and  2  of  subdivision  (c)  of
section  2-a  of chapter 274 of the laws of 1946, constituting the emer-
gency housing rent control law, as amended by section 32 of  part  B  of
chapter 97 of the laws of 2011, are amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of  each housing accommodation for which the 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07111-02-4

S. 4073--A                          2

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 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  the deregulation income threshold [in each of] FOR 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.
  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  certification
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
the  deregulation  income  threshold  [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 the  deregulation
income  threshold [in each of] 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 of deregulation 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 the deregulation income  threshold
[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 deregu-

S. 4073--A                          3

lation 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.
  S  3. Paragraph 12 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, as amended by section 29 of
part B of chapter 97 of the laws of 2011, 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  AVERAGE  annual
income  as  defined  in  and  subject to the limitations and process set
forth in section five-a of this act in excess of the deregulation income
threshold, as defined in section five-a of this act, [in  each  of]  FOR
the  two  preceding  calendar years; and (2) have a legal regulated rent
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 twenty-one-a or four hundred eighty-nine of the real prop-
erty tax law, except as otherwise provided in subparagraph (i) of  para-
graph (f) of subdivision two of section four hundred twenty-one-a of the
real property tax law, or (b) by virtue of article seven-C of the multi-
ple dwelling law.
  S  4.  Subdivisions (b) and (c) of 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, are amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the 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 AVERAGE  annual  income
is  in  excess of the deregulation income threshold [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 monthly rent that equals or  exceeds  the  deregu-
lation  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 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 the deregulation income threshold [in each of] FOR the
two preceding calendar years, the owner may file the certification  with
the  state  division  of housing and community renewal on or before June

S. 4073--A                          4

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 AVERAGE annual income exceeds
the deregulation income threshold [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 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  the  deregulation  income  threshold  [in  each of] 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
AVERAGE annual income is in excess of the deregulation income  threshold
[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.
  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.
  S 5. Clause 1 of 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 section 33 of part B of chapter 97 of the laws  of  2011,  is
amended to read as follows:

S. 4073--A                          5

  (1) are occupied by persons who have a total AVERAGE 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 the  deregulation  income
threshold,  as defined in section 26-403.1 of this chapter, [in each of]
FOR the two preceding calendar years; and
  S  6.  Subdivision  (b)  and  paragraphs 1 and 2 of subdivision (c) of
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, are
amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for  which  the  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 AVERAGE annual income
is in excess of the deregulation income threshold [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 maximum monthly rent that equals  or  exceeds  the  deregu-
lation  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 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 the deregulation income threshold [in each of] FOR 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 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.
  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  certification
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
the  deregulation  income  threshold  [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

S. 4073--A                          6

verify whether the total AVERAGE annual income exceeds the  deregulation
income  threshold [in each of] 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 of deregulation 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 the deregulation income  threshold
[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 deregu-
lation 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.
  S  7.  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 AVERAGE annual income, as defined in and subject to the
limitations  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
twenty-one-a or four hundred eighty-nine of the real property  tax  law,
except  as  otherwise  provided  in subparagraph (i) of paragraph (f) of
subdivision two of section four hundred twenty-one-a of the real proper-
ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
law.
  S 8. Subdivision (b) and paragraphs 1 and  2  of  subdivision  (c)  of
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,  are
amended to read as follows:
  (b) On or before the first day of May in each calendar year, the owner
of  each housing accommodation for which the 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
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 the deregulation income threshold [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

S. 4073--A                          7

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 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 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 AVERAGE annual income as
certified is in excess of the deregulation income threshold [in each of]
FOR the two preceding calendar years, the owner  may  file  the  certif-
ication  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 exist-
ing lease.  A copy of such order shall be mailed by regular  and  certi-
fied mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be mailed to the owner.
  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 certification
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
the deregulation income threshold [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  the  deregulation  income  threshold  [in  each of] 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-
dation 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 the deregulation income threshold
[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.

S. 4073--A                          8

  S 9. This act shall take effect immediately and shall apply to  income
certification forms served on and after January 1, 2015; provided that:
  (a)  the  amendments to the emergency housing rent control law made by
sections one and 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
in subdivision 2 of section 1 of chapter 274 of the laws of 1946;
  (b) the amendments to the emergency tenant protection act of  nineteen
seventy-four made by sections three and 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;
  (c)  the  amendments  to  the city rent and rehabilitation law made by
sections five and six 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
  (d) the amendments to chapter 4 of title 26 of the administrative code
of the city of New York made by sections seven and  eight  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.

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