LBD10073-01-7
 A. 6770                             2
 
 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 before July first, two thousand
 eleven. For proceedings commenced on or after July first,  two  thousand
 [eleven]  SIXTEEN,  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 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. For
 proceedings commenced on or after July first, two thousand fifteen,  the
 deregulation  rent  threshold  means two thousand seven hundred dollars,
 provided, however, that on January 1, 2016, and annually thereafter, the
 maximum legal regulated rent for this deregulation  threshold  shall  be
 adjusted  by  the  same  percentage  as the most recent one year renewal
 adjustment adopted by the rent guidelines board.]
   (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
 A. 6770                             3
 
 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 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
 A. 6770                             4
 
 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.
   §  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,  and  paragraph  3  of subdivision (a) as amended by section 15 of
 part A of chapter 20 of the laws of 2015, is amended to read as follows:
   § 26-403.1 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 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] SIXTEEN, 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. For
 proceedings commenced on or after July first, two thousand fifteen,  the
 deregulation  rent  threshold  means two thousand seven hundred dollars,
 provided, however, that on January  first,  two  thousand  sixteen,  and
 annually  thereafter, such deregulation rent threshold shall be adjusted
 by the same percentage as the most recent one  year  renewal  adjustment
 adopted by the relevant guidelines board.]
   (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-
 A. 6770                             5
 
 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
 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.
 A. 6770                             6
 
   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.
   §  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.
   § 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:
   § 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.
   § 6. Section 26-504.2 of the administrative code of the  city  of  New
 York is REPEALED.
   §  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,  and  paragraph  3  of subdivision (a) as amended by section 16 of
 part A of chapter 20 of the laws of 2015, is amended to read as follows:
   § 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
 A. 6770                             7
 
 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] SIXTEEN, 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. For
 proceedings  commenced on or after July first, two thousand fifteen, the
 deregulation rent threshold means two thousand  seven  hundred  dollars,
 provided,  however,  that  on  January  first, two thousand sixteen, and
 annually thereafter, such deregulation rent threshold shall be  adjusted
 by  the  same  percentage as the most recent one year renewal adjustment
 adopted by the relevant guidelines board.]
   (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  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-
 A. 6770                             8
 
 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
 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.
   §  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.
 A. 6770                             9
 
   § 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,  and  paragraph  3  of subdivision (a) as amended by section 13 of
 part A of chapter 20 of the laws of 2015, is amended to read as follows:
   §  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]  SIXTEEN,  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.
 For  proceedings commenced on or after July first, two thousand fifteen,
 the  deregulation  rent  threshold  means  two  thousand  seven  hundred
 dollars,  provided, however that on January 1, 2016, and annually there-
 after, the maximum legal regulated rent for this deregulation  threshold
 shall  be  adjusted  by  the same percentage as the most recent one year
 renewal adjustment adopted by the rent guidelines board.]
   (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
 A. 6770                            10
 
 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
 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.
 A. 6770                            11
 
   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.
   §  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  SEVENTEEN,  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  inter-
 fere  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 accommodations as to which a housing emergency has
 been  declared  pursuant to the emergency tenant protection act of nine-
 teen seventy-four shall be subject to the provisions of such act for the
 duration of such emergency;] or
   § 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 SEVENTEEN 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
 A. 6770                            12
 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.
   § 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-
 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.
   § 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 SEVENTEEN, PROVIDED, HOWEVER, THAT  THIS  EXCEP-
 TION  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 INTERFERED WITH OR DISTURBED OR WAS INTENDED TO
 INTERFERE IN HIS OR HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS.
 A. 6770                            13
 
   § 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 SEVENTEEN 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.
   § 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,
 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.