New York Rent Laws

Rent Regulation "Reform" Act of 1993

RENT REGULATION REFORM ACT OF 1993 STATE OF NEW YORK 6198 1993-1994 Regular Sessions IN SENATE July 7, 1993 EXPLANATION -- Matter in ALL CAPS is new; matter in brackets [ ] is old law to be omitted Introduced by Sens. HANNON, BRUNO, DALY, MARINO, MARCHI, MALTESE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the emergency housing rent control law, the administrative code of the city of New York, the emergency tenant protection act of nineteen seventy-four, the tax law and the real property tax law, in relation to eliminating rent regulation protections for certain high income tenants and high rent apartments and to amend chapter 576 of the laws of 1974, amending the emergency housing rent control law relating to the control of and stabilization of rent in certain cases, chapter 329 of the laws of 1963, amending the emergency housing rent control law relating to the recontrol of rents in certain cases, the emergency housing rent control law, chapter 555 of the laws of 1982, amending the general business law and the administrative code of the city of New York relating to conversion of rental residential property to cooperative or condominium ownership in the city of New York and chapter 402 of the laws of 1983, amending the general business law relating to conversion of rental residential property to cooperative or condominium ownership in certain municipalities in the counties of Nassau, Westchester and Rockland, in relation to their periods of effectiveness, the emergency tenant protection act of nineteen seventy-four, in relation to applicability to cooperative or condominium units, the administrative code of the city of New York, and the emergency tenant protection act of nineteen seventy- four, and the emergency housing rent control law, in relation to rent increases for certain improvements and repealing provisions thereof relating thereto, the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, in relation to rent registration and certain penalties THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "rent regulation reform act of 1993". Sec. 2. Subdivision 2 of section 2 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, is amended by adding two new paragraphs (m) and (n) to read as follows: (M) UPON THE ISSUANCE OF AN ORDER OF DECONTROL BY THE DIVISION, HOUSING ACCOMMODATIONS WHICH: (1) ARE OCCUPIED BY PERSONS WHO HAVE A TOTAL ANNUAL INCOME IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING CALENDAR YEARS, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS AND PROCESS SET FORTH IN SECTION TWO-A OF THIS LAW; AND (2) HAVE A MAXIMUM RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE. (N) ANY HOUSING ACCOMMODATION WITH A MAXIMUM RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME BETWEEN THE EFFECTIVE DATE OF THIS PARAGRAPH AND OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE WHICH IS OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH. THIS EXCLUSION SHALL NOT APPLY HOWEVER, TO OR BECOME EFFECTIVE WITH RESPECT TO HOUSING ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES OR FINDS THAT THE LANDLORD OR ANY PERSON ACTING ON HIS OR HER BEHALF, WITH INTENT TO CAUSE THE TENANT TO VACATE, HAS 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 WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR QUIET OF THE TENANT IN HIS OR HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS AND IN CONNECTION WITH SUCH COURSE OF CONDUCT, ANY OTHER GENERAL ENFORCEMENT PROVISION OF THIS LAW SHALL ALSO APPLY. Sec. 3. Chapter 274 of the laws of 1946, constituting the emergency housing rent control law, is amended by adding a new section 2-a to read as follows: SEC. 2-A. (A) FOR PURPOSES OF THIS SECTION, ANNUAL INCOME SHALL MEAN THE FEDERAL ADJUSTED GROSS INCOME AS REPORTED ON THE NEW YORK STATE INCOME TAX RETURN. TOTAL ANNUAL INCOME MEANS THE SUM OF THE ANNUAL INCOMES OF ALL PERSONS WHO OCCUPY THE HOUSING ACCOMMODATION AS THEIR PRIMARY RESIDENCE ON OTHER THAN A TEMPORARY BASIS, EXCLUDING BONA FIDE EMPLOYEES OF SUCH OCCUPANTS RESIDING THEREIN IN CONNECTION WITH SUCH EMPLOYMENT AND EXCLUDING BONA FIDE SUBTENANTS IN OCCUPANCY PURSUANT TO THE PROVISIONS OF SECTION TWO HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW. IN THE CASE WHERE A HOUSING ACCOMMODATION IS SUBLET, THE ANNUAL INCOME OF THE SUBLESSOR SHALL BE CONSIDERED. (B) ON OR BEFORE THE FIRST DAY OF MAY IN EACH CALENDAR YEAR, THE OWNER OF EACH HOUSING ACCOMMODATION FOR WHICH THE MAXIMUM RENT AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE PER MONTH 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE ARE REQUIRED TO COMPLETE THE CERTIFICATION FORM; (II) THAT TENANTS HAVE PROTECTIONS AVAILABLE TO THEM WHICH ARE DESIGNED TO PREVENT HARASSMENT; (III) THAT TENANTS ARE NOT REQUIRED TO PROVIDE ANY INFORMATION REGARDING THEIR INCOME EXCEPT THAT WHICH IS REQUESTED ON THE FORM AND MAY CONTAIN SUCH OTHER INFORMATION THE DIVISION DEEMS APPROPRIATE. THE TENANT OR TENANTS SHALL RETURN THE COMPLETED CERTIFICATION TO THE OWNER WITHIN THIRTY DAYS AFTER SERVICE UPON THE TENANT OR TENANTS. IN THE EVENT THAT THE TOTAL ANNUAL INCOME AS CERTIFIED IS IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR, THE OWNER MAY FILE THE CERTIFICATION WITH THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL ON OR BEFORE JUNE THIRTIETH OF SUCH YEAR. UPON FILING SUCH CERTIFICATION WITH THE DIVISION, THE DIVISION SHALL, WITHIN THIRTY DAYS AFTER THE FILING, ISSUE AN ORDER OF DECONTROL PROVIDING THAT SUCH HOUSING ACCOMMODATIONS SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW AS OF THE FIRST DAY OF JUNE IN THE YEAR NEXT SUCCEEDING THE FILING OF THE CERTIFICATION BY THE OWNER. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE MAILED TO THE OWNER. (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 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 ANNUAL INCOME EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING CALENDAR YEARS. WITHIN TWENTY DAYS AFTER THE FILING OF SUCH REQUEST WITH THE DIVISION, THE DIVISION SHALL NOTIFY THE TENANT OR TENANTS THAT SUCH TENANT OR TENANTS 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 TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR. THE DIVISION'S NOTIFICATION SHALL REQUIRE THE TENANT OR TENANTS TO PROVIDE THE INFORMATION TO THE DIVISION WITHIN SIXTY DAYS OF SERVICE UPON SUCH TENANT OR TENANTS AND SHALL INCLUDE A WARNING IN BOLD FACED TYPE THAT FAILURE TO RESPOND WILL RESULT IN AN ORDER OF DECONTROL 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 DECONTROL PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW AS OF THE FIRST DAY OF MARCH IN THE YEAR NEXT SUCCEEDING THE FILING OF THE OWNER'S PETITION WITH THE DIVISION. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE SENT TO THE OWNER. 3. IN THE EVENT THE TENANT OR TENANTS FAIL TO PROVIDE THE INFORMATION REQUIRED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION, THE DIVISION SHALL ISSUE, ON OR BEFORE DECEMBER FIRST OF SUCH YEAR, AN ORDER OF DECONTROL PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW AS OF THE FIRST DAY OF MARCH IN THE YEAR NEXT SUCCEEDING THE LAST DAY ON WHICH THE TENANT OR TENANTS WERE REQUIRED TO PROVIDE THE INFORMATION REQUIRED BY SUCH PARAGRAPH. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE SENT TO THE OWNER. 4. THE PROVISIONS OF THE STATE FREEDOM OF INFORMATION ACT SHALL NOT APPLY TO ANY INCOME INFORMATION OBTAINED BY THE DIVISION PURSUANT TO THIS SECTION. (D) THIS SECTION SHALL APPLY ONLY TO PARAGRAPH (M) OF SUBDIVISION TWO OF SECTION TWO OF THIS LAW. Sec. 4. Paragraph 2 of subdivision e of section 26-403 of the administrative code of the city of New York is amended by adding two new subparagraphs (j) and (k) to read as follows: (J) UPON THE ISSUANCE OF AN ORDER OF DECONTROL BY THE DIVISION, HOUSING ACCOMMODATIONS WHICH: (1) ARE OCCUPIED BY PERSONS WHO HAVE A TOTAL ANNUAL INCOME IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS PER ANNUM IN EACH OF THE TWO PRECEDING CALENDAR YEARS, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS AND PROCESS SET FORTH IN SECTION 26-403.1 OF THIS CHAPTER; AND (2) HAVE A MAXIMUM RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE. PROVIDED HOWEVER, THAT THIS EXCLUSION SHALL NOT APPLY TO HOUSING ACCOMMODATIONS WHICH BECAME OR BECOME SUBJECT TO THIS LAW BY VIRTUE OF RECEIVING TAX BENEFITS PURSUANT TO SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW. (K) ANY HOUSING ACCOMMODATION WITH A MAXIMUM RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME BETWEEN THE EFFECTIVE DATE OF THIS SUBPARAGRAPH AND OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE WHICH IS OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. PROVIDED HOWEVER, THAT THIS EXCLUSION SHALL NOT APPLY TO HOUSING ACCOMMODATIONS WHICH BECAME OR BECOME SUBJECT TO THIS LAW BY VIRTUE OF RECEIVING TAX BENEFITS PURSUANT TO SECTION FOUR HUNDRED EIGHTY- NINE OF THE REAL PROPERTY TAX LAW. THIS SUBPARAGRAPH SHALL NOT APPLY HOWEVER, TO OR BECOME EFFECTIVE WITH RESPECT TO HOUSING ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES OR FINDS THAT THE LANDLORD OR ANY PERSON ACTING ON HIS OR HER BEHALF, WITH INTENT TO CAUSE THE TENANT TO VACATE, HAS 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 WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR QUIET OF THE TENANT IN HIS OR HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS AND IN CONNECTION WITH SUCH COURSE OF CONDUCT, ANY OTHER GENERAL ENFORCEMENT PROVISION OF THIS LAW SHALL ALSO APPLY. Sec. 5. The administrative code of the city of New York is amended by adding a new section 26-403.1 to read as follows: SEC. 26-403.1 HIGH INCOME RENT DECONTROL. (A) FOR PURPOSES OF THIS SECTION, ANNUAL INCOME SHALL MEAN THE FEDERAL ADJUSTED GROSS INCOME AS REPORTED ON THE NEW YORK STATE INCOME TAX RETURN. TOTAL ANNUAL INCOME MEANS THE SUM OF THE ANNUAL INCOMES OF ALL PERSONS WHO OCCUPY THE HOUSING ACCOMMODATION AS THEIR PRIMARY RESIDENCE OTHER THAN ON A TEMPORARY BASIS, EXCLUDING BONA FIDE EMPLOYEES OF SUCH OCCUPANTS RESIDING THEREIN IN CONNECTION WITH SUCH EMPLOYMENT AND EXCLUDING BONA FIDE SUBTENANTS IN OCCUPANCY PURSUANT TO THE PROVISIONS OF SECTION TWO HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW. IN THE CASE WHERE A HOUSING ACCOMMODATION IS SUBLET, THE ANNUAL INCOME OF THE SUBLESSOR SHALL BE CONSIDERED. (B) ON OR BEFORE THE FIRST DAY OF MAY IN EACH CALENDAR YEAR, THE OWNER OF EACH HOUSING ACCOMMODATION FOR WHICH THE MAXIMUM RENT AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE PER MONTH 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE ARE REQUIRED TO COMPLETE THE CERTIFICATION FORM; (II) THAT TENANTS HAVE PROTECTIONS AVAILABLE TO THEM WHICH ARE DESIGNED TO PREVENT HARASSMENT; (III) THAT TENANTS ARE NOT REQUIRED TO PROVIDE ANY INFORMATION REGARDING THEIR INCOME EXCEPT THAT WHICH IS REQUESTED ON THE FORM AND MAY CONTAIN SUCH OTHER INFORMATION THE DIVISION DEEMS APPROPRIATE. THE TENANT OR TENANTS SHALL RETURN THE COMPLETED CERTIFICATION TO THE OWNER WITHIN THIRTY DAYS AFTER SERVICE UPON THE TENANT OR TENANTS. IN THE EVENT THAT THE TOTAL ANNUAL INCOME AS CERTIFIED IS IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR, THE OWNER MAY FILE THE CERTIFICATION WITH THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL ON OR BEFORE JUNE THIRTIETH OF SUCH YEAR. UPON FILING SUCH CERTIFICATION WITH THE DIVISION, THE DIVISION SHALL, WITHIN THIRTY DAYS AFTER THE FILING, ISSUE AN ORDER OF DECONTROL PROVIDING THAT SUCH HOUSING ACCOMMODATIONS SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW AS OF THE FIRST DAY OF JUNE IN THE YEAR NEXT SUCCEEDING THE FILING OF THE CERTIFICATION BY THE OWNER. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE MAILED TO THE OWNER. (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 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 ANNUAL INCOME EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING CALENDAR YEARS. WITHIN TWENTY DAYS AFTER THE FILING OF SUCH REQUEST WITH THE DIVISION, THE DIVISION SHALL NOTIFY THE TENANT OR TENANTS THAT SUCH TENANT OR TENANTS 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 TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR. THE DIVISION'S NOTIFICATION SHALL REQUIRE THE TENANT OR TENANTS TO PROVIDE THE INFORMATION TO THE DIVISION WITHIN SIXTY DAYS OF SERVICE UPON SUCH TENANT OR TENANTS AND SHALL INCLUDE A WARNING IN BOLD FACED TYPE THAT FAILURE TO RESPOND WILL RESULT IN AN ORDER OF DECONTROL 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 DECONTROL PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW AS OF THE FIRST DAY OF MARCH IN THE YEAR NEXT SUCCEEDING THE FILING OF THE OWNER'S PETITION WITH THE DIVISION. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE SENT TO THE OWNER. 3. IN THE EVENT THE TENANT OR TENANTS FAIL TO PROVIDE THE INFORMATION REQUIRED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION, THE DIVISION SHALL ISSUE, ON OR BEFORE DECEMBER FIRST OF SUCH YEAR, AN ORDER OF DECONTROL PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW AS OF THE FIRST DAY OF MARCH IN THE YEAR NEXT SUCCEEDING THE LAST DAY ON WHICH THE TENANT OR TENANTS WERE REQUIRED TO PROVIDE THE INFORMATION REQUIRED BY SUCH PARAGRAPH. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE SENT TO THE OWNER. 4. THE PROVISIONS OF THE STATE FREEDOM OF INFORMATION ACT SHALL NOT APPLY TO ANY INCOME INFORMATION OBTAINED BY THE DIVISION PURSUANT TO THIS SECTION. (D) THIS SECTION SHALL APPLY ONLY TO SUBPARAGRAPH (J) PARAGRAPH TWO OF SUBDIVISION E OF SECTION 26-403 OF THIS CODE. Sec. 6. The administrative code of the city of New York is amended by adding two new sections 26-504.1 and 26-504.2 to read as follows: SEC. 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 IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS PER ANNUM FOR EACH OF THE TWO PRECEDING CALENDAR YEARS, AS DEFINED IN AND SUBJECT TO THE LIMITATIONS AND PROCESS SET FORTH IN SECTION 26- 504.3 OF THIS CHAPTER, AND (2) HAVE A LEGAL REGULATED RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE. 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 PROPERTY TAX LAW, OR (B) BY VIRTUE OF ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW. SEC. 26-504.2 EXCLUSION OF HIGH RENT ACCOMMODATIONS. "HOUSING ACCOMMODATIONS" SHALL NOT INCLUDE ANY HOUSING ACCOMMODATION WITH A LEGAL REGULATED RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME BETWEEN THE EFFECTIVE DATE OF THIS SECTION AND OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE WHICH IS OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION. 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 PROPERTY TAX LAW, OR (B) BY VIRTUE OF ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW. THIS SECTION SHALL NOT APPLY, HOWEVER, TO OR BECOME EFFECTIVE WITH RESPECT TO HOUSING ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES OR FINDS THAT 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 WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR QUIET OF THE TENANT IN HIS OR HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS AND IN CONNECTION WITH SUCH COURSE OF CONDUCT, ANY OTHER GENERAL ENFORCEMENT PROVISION OF THIS LAW SHALL ALSO APPLY. Sec. 7. The administrative code of the city of New York is amended by adding a new section 26-504.3 to read as follows: SEC. 26-504.3 HIGH INCOME RENT DECONTROL. (A) FOR PURPOSES OF THIS SECTION, ANNUAL INCOME SHALL MEAN THE FEDERAL ADJUSTED GROSS INCOME AS REPORTED ON THE NEW YORK STATE INCOME TAX RETURN. TOTAL ANNUAL INCOME MEANS THE SUM OF THE ANNUAL INCOMES OF ALL PERSONS WHOSE NAMES ARE RECITED AS THE TENANT OR CO-TENANT ON A LEASE WHO OCCUPY THE HOUSING ACCOMMODATION AND ALL OTHER PERSONS THAT OCCUPY THE HOUSING ACCOMMODATION AS THEIR PRIMARY RESIDENCE ON OTHER THAN A TEMPORARY BASIS, EXCLUDING BONA FIDE EMPLOYEES OF SUCH OCCUPANTS RESIDING THEREIN IN CONNECTION WITH SUCH EMPLOYMENT AND EXCLUDING BONA FIDE SUBTENANTS IN OCCUPANCY PURSUANT TO THE PROVISIONS OF SECTION TWO HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW. IN THE CASE WHERE A HOUSING ACCOMMODATION IS SUBLET, THE ANNUAL INCOME OF THE TENANT OR CO-TENANT RECITED ON THE LEASE WHO WILL REOCCUPY THE HOUSING ACCOMMODATION UPON THE EXPIRATION OF THE SUBLEASE SHALL BE CONSIDERED. (B) ON OR BEFORE THE FIRST DAY OF MAY IN EACH CALENDAR YEAR, THE OWNER OF EACH HOUSING ACCOMMODATION FOR WHICH THE LEGAL REGULATED RENT AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE PER MONTH 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 LEGAL REGULATED RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY- THREE ARE REQUIRED TO COMPLETE THE CERTIFICATION FORM; (II) THAT TENANTS HAVE PROTECTIONS AVAILABLE TO THEM WHICH ARE DESIGNED TO PREVENT HARASSMENT; (III) THAT TENANTS ARE NOT REQUIRED TO PROVIDE ANY INFORMATION REGARDING THEIR INCOME EXCEPT THAT WHICH IS REQUESTED ON THE FORM AND MAY CONTAIN SUCH OTHER INFORMATION THE DIVISION DEEMS APPROPRIATE. THE TENANT OR TENANTS SHALL RETURN THE COMPLETED CERTIFICATION TO THE OWNER WITHIN THIRTY DAYS AFTER SERVICE UPON THE TENANT OR TENANTS. IN THE EVENT THAT THE TOTAL ANNUAL INCOME AS CERTIFIED IS IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR, THE OWNER MAY FILE THE CERTIFICATION WITH THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL ON OR BEFORE JUNE THIRTIETH OF SUCH YEAR. UPON FILING SUCH CERTIFICATION WITH THE DIVISION, THE DIVISION SHALL, WITHIN THIRTY DAYS AFTER THE FILING, ISSUE AN ORDER PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS ACT UPON THE EXPIRATION OF THE EXISTING LEASE. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE MAILED TO THE OWNER. (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 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 ANNUAL INCOME EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING CALENDAR YEARS. WITHIN TWENTY DAYS AFTER THE FILING OF SUCH REQUEST WITH THE DIVISION, THE DIVISION SHALL NOTIFY THE TENANT OR TENANTS 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 TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR. THE DIVISION'S NOTIFICATION SHALL REQUIRE THE TENANT OR TENANTS TO PROVIDE THE INFORMATION TO THE DIVISION WITHIN SIXTY DAYS OF SERVICE UPON SUCH TENANT OR TENANTS AND SHALL INCLUDE A WARNING IN BOLD FACED TYPE THAT FAILURE TO RESPOND WILL RESULT IN AN ORDER BEING ISSUED BY THE DIVISION PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW. 2. IF THE DEPARTMENT OF TAXATION AND FINANCE DETERMINES THAT THE TOTAL ANNUAL INCOME IS IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS 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 PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW UPON THE EXPIRATION OF THE CURRENT LEASE. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE SENT TO THE OWNER. 4. THE PROVISIONS OF THE STATE FREEDOM OF INFORMATION ACT SHALL NOT APPLY TO ANY INCOME INFORMATION OBTAINED BY THE DIVISION PURSUANT TO THIS SECTION. (D) THIS SECTION SHALL APPLY ONLY TO SECTION 26-504.1 OF THIS CODE. Sec. 8. Paragraph 12 of subdivision a of section 5 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, is redesignated subdivision b and two new paragraphs 12 and 13 are added to read as follows: (12) UPON ISSUANCE OF AN ORDER BY THE DIVISION, HOUSING ACCOMMODATIONS WHICH ARE: (1) OCCUPIED BY PERSONS WHO HAVE A TOTAL ANNUAL INCOME IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS PER ANNUM IN EACH OF THE TWO PRECEDING CALENDAR YEARS AS DEFINED IN AND SUBJECT TO THE LIMITATIONS AND PROCESS SET FORTH IN SECTION FIVE-A OF THIS ACT; AND (2) HAVE A LEGAL REGULATED RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE. 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 PROPERTY TAX LAW, EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (I) OF PARAGRAPH (F) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED: TWENTY-ONE- A OF THE REAL PROPERTY TAX LAW, OR (B) BY VIRTUE OF ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW. (13) ANY HOUSING ACCOMMODATION WITH A LEGAL REGULATED RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME BETWEEN THE EFFECTIVE DATE OF THIS PARAGRAPH AND OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE WHICH IS OR BECOMES VACANT ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, 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 PROPERTY TAX LAW, EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (I) OF PARAGRAPH (F) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-ONE-A OF THE REAL PROPERTY TAX LAW, OR (B) BY VIRTUE OF ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW. THIS PARAGRAPH SHALL NOT APPLY, HOWEVER, TO OR BECOME EFFECTIVE WITH RESPECT TO HOUSING ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES OR FINDS THAT THE LANDLORD OR ANY PERSON ACTING ON HIS OR HER BEHALF, WITH INTENT TO CAUSE THE TENANT TO VACATE, HAS 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 WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR QUIET OF THE TENANT IN HIS OR HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS AND IN CONNECTION WITH SUCH COURSE OF CONDUCT, ANY OTHER GENERAL ENFORCEMENT PROVISION OF THIS ACT SHALL ALSO APPLY. Sec. 9. Section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, is amended by adding a new section 5-a to read as follows: SEC. 5-A. HIGH INCOME RENT DECONTROL. (A) FOR PURPOSES OF THIS SECTION, ANNUAL INCOME SHALL MEAN THE FEDERAL ADJUSTED GROSS INCOME AS REPORTED ON THE NEW YORK STATE INCOME TAX RETURN. TOTAL ANNUAL INCOME MEANS THE SUM OF THE ANNUAL INCOMES OF ALL PERSONS WHOSE NAMES ARE RECITED AS THE TENANT OR CO-TENANT ON A LEASE WHO OCCUPY THE HOUSING ACCOMMODATION AND ALL OTHER PERSONS THAT OCCUPY THE HOUSING ACCOMMODATION AS THEIR PRIMARY RESIDENCE ON OTHER THAN A TEMPORARY BASIS, EXCLUDING BONA FIDE EMPLOYEES OF SUCH OCCUPANTS RESIDING THEREIN IN CONNECTION WITH SUCH EMPLOYMENT AND EXCLUDING BONA FIDE SUBTENANTS IN OCCUPANCY PURSUANT TO THE PROVISIONS OF SECTION TWO HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW. IN THE CASE WHERE A HOUSING ACCOMMODATION IS SUBLET, THE ANNUAL INCOME OF THE TENANT OR CO-TENANT RECITED ON THE LEASE WHO WILL REOCCUPY THE HOUSING ACCOMMODATION UPON THE EXPIRATION OF THE SUBLEASE SHALL BE CONSIDERED. (B) ON OR BEFORE THE FIRST DAY OF MAY IN EACH CALENDAR YEAR, THE OWNER OF EACH HOUSING ACCOMMODATION FOR WHICH THE LEGAL REGULATED RENT AS OF OCTOBER FIRST, NINETEEN HUNDRED NINETY-THREE IS TWO THOUSAND DOLLARS OR MORE PER MONTH 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 CLEARLY STATE THAT: (I) ONLY TENANTS RESIDING IN HOUSING ACCOMMODATIONS WHICH HAD A LEGAL REGULATED RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH AS OF OCTOBER FIRST. NINETEEN HUNDRED NINETY- THREE 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 THAT 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 TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR, THE OWNER MAY FILE THE CERTIFICATION WITH THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL ON OR BEFORE JUNE THIRTIETH OF SUCH YEAR. UPON FILING SUCH CERTIFICATION WITH THE DIVISION, THE DIVISION SHALL, WITHIN THIRTY DAYS AFTER THE FILING, ISSUE AN ORDER PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS ACT UPON THE EXPIRATION OF THE EXISTING LEASE. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE MAILED TO THE OWNER. (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 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 ANNUAL INCOME EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH OF THE TWO PRECEDING CALENDAR YEARS. WITHIN TWENTY DAYS AFTER THE FILING OF SUCH REQUEST WITH THE DIVISION, THE DIVISION SHALL NOTIFY THE TENANT OR TENANTS THAT SUCH TENANT OR TENANTS NAMED ON THE LEASE MUST PROVIDE THE DIVISION WITH SUCH INFORMATION AS THE DIVISION AND THE DEPARTMENT OF TAXATION AND FINANCE SHALL REQUIRE TO VERIFY WHETHER THE TOTAL ANNUAL INCOME EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS IN EACH SUCH YEAR. THE DIVISION'S NOTIFICATION SHALL REQUIRE THE TENANT OR TENANTS TO PROVIDE THE INFORMATION TO THE DIVISION WITHIN SIXTY DAYS OF SERVICE UPON SUCH TENANT OR TENANTS AND SHALL INCLUDE A WARNING IN BOLD FACED TYPE THAT FAILURE TO RESPOND WILL RESULT IN AN ORDER BEING ISSUED BY THE DIVISION PROVIDING THAT SUCH HOUSING 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 TWO HUNDRED FIFTY THOUSAND DOLLARS 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 PROVIDING THAT SUCH HOUSING ACCOMMODATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS ACT UPON THE EXPIRATION OR THE CURRENT LEASE. A COPY OF SUCH ORDER SHALL BE MAILED BY REGULAR AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE TENANT OR TENANTS AND A COPY THEREOF SHALL BE SENT TO THE OWNER. 4. THE PROVISIONS OF THE STATE FREEDOM OF INFORMATION ACT SHALL NOT APPLY TO ANY INCOME INFORMATION OBTAINED BY THE DIVISION PURSUANT TO THIS SECTION. (D) THIS SECTION SHALL APPLY ONLY TO PARAGRAPH TWELVE OF SUBDIVISION A OF SECTION FIVE OF THIS ACT. Sec. 10. Subdivisions 3 and 4 of section 171-b of the tax law are renumbered subdivisions 4 and 5 and a new subdivision 3 is added and subdivision 5, as amended by chapter 261 of the laws of 1988 and renumbered by this section, is amended to read as follows: (3) (A) THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO ENTER INTO AN AGREEMENT WITH THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL TO VERIFY THE INCOME OF TENANTS RESIDING IN HOUSING ACCOMMODATIONS SUBJECT TO RENT REGULATION. THE DEPARTMENT SHALL ADOPT RULES AND REGULATIONS TO EFFECT THE PROVISIONS OF THIS SUBDIVISION. (B) THE DEPARTMENT, WHEN REQUESTED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, SHALL VERIFY THE TOTAL ANNUAL INCOME OF ALL PERSONS RESIDING IN HOUSING ACCOMMODATIONS AS THEIR PRIMARY RESIDENCE SUBJECT TO RENT REGULATION AND SHALL NOTIFY THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL AS MAY BE APPROPRIATE WHETHER THE TOTAL ANNUAL INCOME EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS PER ANNUM IN EACH OF THE TWO PRECEDING CALENDAR YEARS. NO OTHER INFORMATION REGARDING THE ANNUAL INCOME OF SUCH PERSONS SHALL BE PROVIDED. (C) NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE DEEMED TO REQUIRE THE VIOLATION OF ANY CONFIDENTIALITY AGREEMENT ENTERED INTO BY THE STATE OR ANY ENTITY THEREOF UNDER THE PROVISIONS OF SECTION SIXTY-ONE HUNDRED THREE, OR ANY OTHER PROVISION, OF THE INTERNAL REVENUE CODE, NOR SHALL THIS SUBDIVISION BE ADMINISTERED IN ANY MANNER WHICH WILL RESULT IN A VIOLATION OF ANY SUCH CONFIDENTIALITY AGREEMENT. (5) The provisions of the state freedom of information act shall not apply to any verification of income information obtained from a company, the commissioner of housing and community renewal, the supervising agency, the corporation, or officer or employee thereof pursuant to the provisions of this section NOR SHALL THE PROVISIONS OF SUCH ACT APPLY TO ANY VERIFICATIONS PREPARED OR PROVIDED PURSUANT TO SUBDIVISION THREE OF THIS SECTION. Sec. 11. Subparagraph (i) of paragraph (f) of subdivision 2 of section 421-a of the real property tax law, as added by chapter 346 of the laws of 1984, is amended to read as follows: (i) with respect to units subject to the provisions of this section on the effective date of this subparagraph such a unit becomes vacant after the expiration of such ten year period or applicable law or act; provided, however, THAT SUCH UNITS MAY BE DECONTROLLED PURSUANT TO THE RENT REGULATION REFORM ACT OF 1993 AND PROVIDED FURTHER THAT the rent shall not be decontrolled for a unit which the commissioner of housing and community renewal or a court of competent jurisdiction finds became vacant because the landlord or any person acting on his behalf 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 such unit, and, that upon such finding in addition to being subject to any other penalties or remedies permitted by law, the landlord of such unit shall be barred from collecting rent for such unit in excess of that charged to the tenant who vacated such unit until restoration of possession of such tenant, if the tenant so desires, in which case the rent of such tenant shall be established as if such tenant had not vacated such unit, or compliance with such other remedy, including, but not limited to, all remedies provided for by the emergency tenant protection act of nineteen seventy-four for rent overcharge or failure to comply with any order of the commissioner of housing and community renewal, as shall be determined by the commissioner of housing and community renewal to be appropriate; provided, however, that if a tenant fails to accept any such offer of restoration of possession, such unit shall return to rent stabilization at the previously regulated rent; or Sec. 12. Section 17 of chapter 576 of the laws of 1974, amending the emergency housing rent control law relating to the control of and stabilization of rent in certain cases, as amended by chapter 197 of the laws of 1993, is amended to read as follows: Sec. 17. Effective date. This act shall take effect immediately and shall remain in full force and effect until and including the [seventh day of July, 1993] FIFTEENTH DAY OF JUNE 1997; except that sections two and three shall take effect with respect to any city having a population of one million or more and section one shall take effect with respect to any other city, or any town or village whenever the local legislative body of a city, town or village determines the existence of a public emergency pursuant to section 3 of the emergency tenant protection act of nineteen seventy-four, as enacted by section four of this act, and provided that the housing accommodations subject on the effective date of this act to stabilization pursuant to the New York city rent stabilization law of nineteen hundred sixty-nine shall remain subject to such law upon the expiration of this act. Sec. 13. Section 2 of chapter 329 of the laws of 1963, amending the emergency housing rent control law relating to the recontrol of rents in certain cases, as amended by chapter 197 of the laws of 1993, is amended to read as follows: Sec. 2. This act shall take effect immediately and the provisions of subdivision 6 of section 12 of the emergency housing rent control law, as added by this act, shall remain in full force and effect until and including [July 7, 1993] JUNE 15, 1997. Sec. 14. Subdivision 2 of section 1 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, as amended by chapter 197 of the laws of 1993, is amended to read as follows: 2. The provisions of this act, and all regulations, orders and requirements thereunder shall remain in full force and effect until and including [July 7, 1993] JUNE 15, 1997. Sec. 15. Section 10 of chapter 555 of the laws of 1982, amending the general business law and the administrative code of the city of New York relating to conversion of rental residential property to cooperative or condominium ownership in the city of New York, as amended by chapter 197 of the laws of 1993, is amended to read as follows: Sec. 10. This act shall take effect immediately; provided, that the provisions of sections one, two and nine of this act shall remain in full force and effect only until and including [July 7, 1993] JUNE 15, 1997; provided further that the provisions of section three of this act shall remain in full force and effect only so long as the public emergency requiring the regulation and control of residential rents and evictions continues as provided in subdivision 3 of section 1 of the local emergency housing rent control act; provided further that the provisions of sections four, five, six and seven of this act shall expire in accordance with the provisions of section 26-520 of the administrative code of the city of New York as such section of the administrative code is, from time to time, amended; provided further that the provisions of section 26-511 of the administrative code of the city of New York, as amended by this act, which the New York City Department of Housing Preservation and Development must find are contained in the code of the real estate industry stabilization association of such city in order to approve it, shall be deemed contained therein as of the effective date of this act; and provided further that any plan accepted for filing by the department of law on or before the effective date of this act shall continue to be governed by the provisions of section 352-eeee of the general business law as they had existed immediately prior to the effective date of this act. Sec. 16. Section 4 of chapter 402 of the laws of 1983, amending the general business law relating to conversion of rental residential property to cooperative or condominium ownership in certain municipalities in the counties of Nassau, Westchester and Rockland, as amended by chapter 197 of the laws of 1993, is amended to read as follows: Sec. 4. This act shall take effect immediately; provided, that the provisions of sections one and three of this act shall remain in full force and effect only until and including [July 7, 1993] JUNE 15, 1997; and provided further that any plan accepted for filing by the department of law on or before the effective date of this act shall continue to be governed by the provisions of section 352-eee of the general business law as they had existed immediately prior to the effective date of this act. Sec. 17. Subdivision a of section 5 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, is amended by adding a new paragraph 14 to read as follows: (14) (I) HOUSING ACCOMMODATIONS OWNED AS A COOPERATIVE OR CONDOMINIUM UNIT WHICH ARE OR BECOME VACANT ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, EXCEPT THAT THIS SUBPARAGRAPH SHALL NOT APPLY TO UNITS OCCUPIED BY NON-PURCHASING TENANTS UNDER SECTION THREE HUNDRED FIFTY-TWO-EEE OF THE GENERAL BUSINESS LAW UNTIL THE OCCURRENCE OF A VACANCY. (II) THIS PARAGRAPH SHALL NOT APPLY, HOWEVER, TO OR BECOME EFFECTIVE WITH RESPECT TO HOUSING ACCOMMODATIONS WHICH THE COMMISSIONER DETERMINES OR FINDS 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 WITH OR DISTURB THE COMFORT, REPOSE, PEACE OR QUIET OF THE TENANT IN HIS OR HER USE OR OCCUPANCY OF THE HOUSING ACCOMMODATIONS. IN CONNECTION WITH SUCH COURSE OF CONDUCT ANY OTHER GENERAL ENFORCEMENT PROVISION OF THIS ACT SHALL ALSO APPLY; Sec. 18. Subparagraph (e) of paragraph 4 of subdivision 9 of section 26-405 of the administrative code of the city of New York is amended to read as follows: (e) The landlord and tenant by mutual voluntary written agreement[, subject to the approval of the city rent agency,] agree to a substantial increase or decrease in dwelling space or a change in the services, furniture, furnishings or equipment provided in the housing accommodations. AN ADJUSTMENT UNDER THIS SUBPARAGRAPH SHALL BE EQUAL TO ONE-FORTIETH OF THE TOTAL COST INCURRED BY THE LANDLORD IN PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT, INCLUDING THE COST OF INSTALLATION, BUT EXCLUDING FINANCE CHARGES, PROVIDED FURTHER THAN AN OWNER WHO IS ENTITLED TO A RENT INCREASE PURSUANT TO THIS SUBPARAGRAPH SHALL NOT BE ENTITLED TO A FURTHER RENT INCREASE BASED UPON THE INSTALLATION OF SIMILAR EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS WITHIN THE USEFUL LIFE OF SUCH NEW EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS. THE OWNER SHALL GIVE WRITTEN NOTICE TO THE CITY RENT AGENCY OF ANY SUCH ADJUSTMENT PURSUANT TO THIS SUBPARAGRAPH.; or Sec. 19. Subdivision c of section 26-511 of the administrative code of the city of New York is amended by adding a new paragraph 13 to read as follows: (13) PROVIDES THAT AN OWNER IS ENTITLED TO A RENT INCREASE WHERE THERE HAS BEEN A SUBSTANTIAL MODIFICATION OR INCREASE OF DWELLING SPACE OR AN INCREASE IN THE SERVICES, OR INSTALLATION OF NEW EQUIPMENT OR IMPROVEMENTS OR NEW FURNITURE OR FURNISHINGS PROVIDED IN OR TO A TENANT'S HOUSING ACCOMMODATION, ON WRITTEN TENANT CONSENT TO THE RENT INCREASE. IN THE CASE OF A VACANT HOUSING ACCOMMODATION, TENANT CONSENT SHALL NOT BE REQUIRED. THE PERMANENT INCREASE IN THE LEGAL REGULATED RENT FOR THE AFFECTED HOUSING ACCOMMODATION SHALL BE ONE-FORTIETH OF THE TOTAL COST INCURRED BY THE LANDLORD IN PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT, INCLUDING THE COST OF INSTALLATION, BUT EXCLUDING FINANCE CHARGES. PROVIDED FURTHER THAT AN OWNER WHO IS ENTITLED TO A RENT INCREASE PURSUANT TO THIS PARAGRAPH SHALL NOT BE ENTITLED TO A FURTHER RENT INCREASE BASED UPON THE INSTALLATION OF SIMILAR EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS WITHIN THE USEFUL LIFE OF SUCH NEW EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS. Sec. 20. Paragraph 1 of subdivision d of section 6 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four is REPEALED and a new paragraph 1 is added to read as follows: (1) THERE HAS BEEN A SUBSTANTIAL MODIFICATION OR INCREASE OF DWELLING SPACE OR AN INCREASE IN THE SERVICES, OR INSTALLATION OF NEW EQUIPMENT OR IMPROVEMENTS OR NEW FURNITURE OR FURNISHINGS, PROVIDED IN OR TO A TENANT'S HOUSING ACCOMMODATION, ON WRITTEN TENANT CONSENT TO THE RENT INCREASE. IN THE CASE OF A VACANT HOUSING ACCOMMODATION, TENANT CONSENT SHALL NOT BE REQUIRED. THE PERMANENT INCREASE IN THE LEGAL REGULATED RENT FOR THE AFFECTED HOUSING ACCOMMODATION SHALL BE ONE- FORTIETH OF THE TOTAL COST INCURRED BY THE LANDLORD IN PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING SPACE, SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT, INCLUDING THE COST OF INSTALLATION, BUT EXCLUDING FINANCE CHARGES. PROVIDED FURTHER THAN AN OWNER WHO IS ENTITLED TO A RENT INCREASE PURSUANT TO THIS PARAGRAPH SHALL NOT BE ENTITLED TO A FURTHER RENT INCREASE BASED UPON THE INSTALLATION OF SIMILAR EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS WITHIN THE USEFUL LIFE OF SUCH NEW EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS. Sec. 21. Clause 5 of paragraph (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, constituting the emergency housing rent control law, as amended by chapter 21 of the laws of 1962, is amended to read as follows: (5) the landlord and tenant by mutual voluntary written agreement[, subject to the approval of the commission,] agree to a substantial increase or decrease in dwelling space or a change in the services, furniture, furnishings or equipment provided in the housing accommodations, PROVIDED THAT AN OWNER SHALL BE ENTITLED TO A RENT INCREASE WHERE THERE HAS BEEN A SUBSTANTIAL MODIFICATION OR INCREASE OF DWELLING SPACE OR AN INCREASE IN THE SERVICES, OR INSTALLATION OF NEW EQUIPMENT OR IMPROVEMENTS OR NEW FURNITURE OR FURNISHINGS PROVIDED IN OR TO A TENANT'S HOUSING ACCOMMODATION. THE PERMANENT INCREASE IN THE MAXIMUM RENT FOR THE AFFECTED HOUSING ACCOMMODATION SHALL BE ONE-FORTIETH OF THE TOTAL COST INCURRED BY THE LANDLORD IN PROVIDING SUCH MODIFICATION OR INCREASE IN DWELLING SPACE, SERVICES FURNITURE, FURNISHINGS OR EQUIPMENT, INCLUDING THE COST OF INSTALLATION, BUT EXCLUDING FINANCE CHARGES PROVIDED FURTHER THAT AN OWNER WHO IS ENTITLED TO A RENT INCREASE PURSUANT TO THIS CLAUSE SHALL NOT BE ENTITLED TO A FURTHER RENT INCREASE BASED UPON THE INSTALLATION OF SIMILAR EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS WITHIN THE USEFUL LIFE OF SUCH NEW EQUIPMENT, OR NEW FURNITURE OR FURNISHINGS. THE OWNER SHALL GIVE WRITTEN NOTICE TO THE COMMISSION OF ANY SUCH ADJUSTMENT PURSUANT TO THIS CLAUSE; or Sec. 22. Subdivision a of section 26-516 of the administrative code of the city of New York is amended to read as follows: a. Subject to the conditions and limitations of this subdivision, any owner of housing accommodations who, upon complaint of a tenant, or of the state division of housing. and community renewal is found by the state division of housing and community renewal, after a reasonable opportunity to be heard, to have collected an overcharge above the rent authorized for a housing accommodation subject to this chapter shall be liable to the tenant for a penalty equal to three times the amount of such overcharge. IN NO EVENT SHALL SUCH TREBLE DAMAGE PENALTY BE ASSESSED AGAINST AN OWNER BASED SOLELY ON SAID OWNER'S FAILURE TO FILE A TIMELY OR PROPER INITIAL OR ANNUAL RENT REGISTRATION STATEMENT. If the owner establishes by a preponderance of the evidence that the overcharge was not willful, the state division of housing and community renewal shall establish the penalty as the amount of the overcharge plus interest. (i) Except as to complaints filed pursuant to clause (ii) of this paragraph, the legal regulated rent for purposes of determining an overcharge, shall be the rent indicated in the annual registration statement filed four years prior to the most recent registration statement, (or, if more recently filed, the initial registration statement) plus in each case any subsequent lawful increases and adjustments. (ii) As to complaints filed within ninety days of the initial registration of a housing accommodation, the legal regulated rent shall be deemed to be the rent charged on the date four years prior to the date of the initial registration of the housing accommodation (or, if the housing accommodation was subject to this chapter for less than four years, the initial legal regulated rent) plus in each case, any lawful increases and adjustments. Where the rent charged on the date four years prior to the date of the initial registration of the accommodation cannot be established, such rent shall be established by the division. Where the rent charged on the date four years prior to the date of initial registration of the housing accommodation cannot be established, such rent shall be established by the division provided that where a rent is established based on rentals determined under the provisions of the local emergency housing rent control act such rent must be adjusted to account for no less than the minimum increases which would be permitted if the housing accommodation were covered under the provisions of this chapter. (1) The order of the state division of housing and community renewal shall apportion the owner's liability between or among two or more tenants found to have been overcharged by such owner during their particular tenancy of a unit. (2) Except as provided under clauses (i) and (ii) of this paragraph, a complaint under this subdivision shall be filed with the state division of housing and community renewal within four years of the first overcharge alleged and no award of the amount of an overcharge may be based upon an overcharge having occurred more than four years before the complaint is filed. (i) No penalty of three times the overcharge may be based upon an overcharge having occurred more than two years before the complaint is filed or upon an overcharge which occurred prior to April 13 first, nineteen hundred eighty-four. (ii) Any complaint based upon overcharges occurring prior to the date of filing of the initial rent registration as provided in section 26-517 of this chapter shall be filed within ninety days of the mailing of notice to the tenant of such registration. (3) Any affected tenant shall be notified of and given an opportunity to join in any complaint filed by an officer or employee of the state division of housing and community renewal. (4) An owner found to have overcharged may be assessed the reasonable costs and attorney's fees of the proceeding and interest from the date of the overcharge at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules. (5) The order of the state division of housing and community renewal awarding penalties may, upon the expiration of the period in which the owner may institute a proceeding pursuant to article seventy- eight of the civil practice law and rules, be filed and enforced by a tenant in the same manner as a judgment or not in excess of twenty percent thereof per month may be offset against any rent thereafter due the owner. Sec. 23. Subdivision e of section 26-517 of the administrative code of the city of New York is amended to read as follows: e. The failure to file a proper and timely initial or annual rent registration statement shall, until such time as such registration is filed, bar an owner from applying for or collecting any rent in excess of the legal regulated rent in effect on the date of the last preceding registration statement or if no such statements have been filed, the legal regulated rent in effect on the date that the housing accommodation became subject to the registration requirements of this section. The filing of a late registration shall result in the prospective elimination of such sanctions AND PROVIDED THAT INCREASES IN THE LEGAL REGULATED RENT WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY REGISTRATION, THE OWNER, UPON THE SERVICE AND FILING OF A LATE REGISTRATION, SHALL NOT BE FOUND TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME PRIOR TO THE FILING OF THE LATE REGISTRATION. IF SUCH LATE REGISTRATION IS FILED SUBSEQUENT TO THE FILING OF AN OVERCHARGE COMPLAINT, THE OWNER SHALL BE ASSESSED A LATE FILING SURCHARGE FOR EACH LATE REGISTRATION IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE. Sec. 24. The opening paragraph of paragraph 1 of subdivision a of section 12 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of nineteen seventy-four, as amended by chapter 403 of the laws of 1983, is amended to read as follows: Subject to the conditions and limitations of this paragraph, any owner of housing accommodations in a city having a population of less than one million or a town or village as to which an emergency has been declared pursuant to section three, who, upon complaint of a tenant or of the state division of housing and community renewal, is found by the state division of housing and community renewal, after a reasonable opportunity to be heard, to have collected an overcharge above the rent authorized for a housing accommodation subject to this act shall be liable to the tenant for a penalty equal to three times the amount of such overcharge. IN NO EVENT SHALL SUCH TREBLE DAMAGE PENALTY BE ASSESSED AGAINST AN OWNER BASED SOLELY ON SAID OWNER'S FAILURE TO FILE A PROPER OR TIMELY INITIAL OR ANNUAL RENT REGISTRATION STATEMENT. If the owner establishes by a preponderance of the evidence that the overcharge was neither willful nor attributable to his negligence, the state division of housing and community renewal shall establish the penalty as the amount of the overcharge plus interest at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules. (i) Except as to complaints filed pursuant to clause (ii) of this paragraph, the legal regulated rent for purposes of determining an overcharge, shall be deemed to be the rent indicated in the annual registration statement filed four years prior to the most recent registration statement, (or, if more recently filed, the initial registration statement) plus in each case any subsequent lawful increases and adjustments. (ii) As to complaints filed within ninety days of the initial registration of a housing accommodation, the legal regulated rent for purposes of determining an overcharge shall be deemed to be the rent charged on the date four years prior to the date of the initial registration of the housing accommodation (or, if the housing accommodation was subject to this act for less than four years, the initial legal regulated rent) plus in each case, any lawful increases and adjustments. Where the rent charged on the date four years prior to the date of the initial registration of the accommodation cannot be established such rent shall be established by the division. Sec. 25. Subdivision e of section 12-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 chapter 403 of the laws of 1983, is amended to read as follows: e. The failure to file a proper and timely initial or annual rent registration statement shall, until such time as such registration is filed, bar an owner from applying for or collecting any rent in excess of the legal regulated rent in effect on the date of the last preceding registration statement or if no such statements have been filed, the legal regulated rent in effect on the date that the housing accommodation became subject to the registration requirements of this section. The filing of a late registration shall result in the prospective elimination of such sanctions AND PROVIDED THAT INCREASES IN THE LEGAL REGULATED RENT WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY REGISTRATION, THE OWNER, UPON THE SERVICE AND FILING OF A LATE REGISTRATION, SHALL NOT BE FOUND TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME PRIOR TO THE FILING OF THE LATE REGISTRATION. IF SUCH LATE REGISTRATION IS FILED SUBSEQUENT TO THE FILING OF AN OVERCHARGE COMPLAINT, THE OWNER SHALL BE ASSESSED A LATE FILING SURCHARGE FOR EACH LATE REGISTRATION IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE. Sec. 26. (a) The chairperson of the senate committee on housing and community development jointly with the chairperson of the assembly housing committee shall establish a study group on rental housing which shall prepare a report or reports to the governor, the temporary president of the senate and the speaker of the assembly no later than June 30, 1995. (b) Such report shall study and investigate: (1) the economics of the rental housing market throughout the state; (2) the relationship of the development and supply of rental housing to, and its effect on, state and local economies; (3) the operation and effects of all state and local rent control and stabilization laws and regulations on the rental housing markets in, and economies of, localities subject to rent regulation; (4) the effectiveness of state and local rent control laws and regulations in ensuring an adequate supply of affordable housing for low and moderate income households and in ensuring that tenants have a safe and decent place to live; and (5) an analysis of who benefits from rent control and rent stabilization according to demographic data and who bears the costs of providing those benefits. (c) Such report shall review functions and activities of the rent regulation system; analyze complaints of tenants and owners about how the law and the office of rent administration is currently being administered; and make administrative and legislative recommendations regarding how to streamline and make more efficient current policies and procedures. Such report shall also examine current hardship application procedures and provide recommendations for developing a hardship formula and procedure that shall include: (1) a review and comparison of the current and previously authorized hardship provisions for both rent controlled and rent stabilized apartments; (2) an analysis and comparison of the number of applications, approvals and denials under current provisions of law and under prior hardship provisions and the time required for processing such applications; (3) where approvals were granted, the effective rate of return; where denials were issued, the reasons therefor; (4) a review and comparison of administrative procedures currently and previously used to process hardship rent increase applications; (5) an analysis of whether the current hardship provisions of law provide owners with a reasonable rate of return and are sufficient to maintain and induce investment in economically marginal properties; and (6) recommendations for changes in the current hardship provisions including ways to simplify and expedite the current hardship rent increase application process. In recommending an alternative hardship formula, the report shall develop a methodology which will enable the division of housing and community renewal to promptly approve or disapprove applications received from owners and minimize the need for extensive documentation from the owner. (d) Such report shall also include and make recommendations regarding: (1) the methodology and criteria employed by rent guidelines boards in establishing guidelines for rent adjustments; (2) the methodology and criteria employed in establishing maximum base rents and biennial adjustments of maximum rents; (3) the operation of senior citizen rent increase exemption programs; (4) procedures and criteria utilized in determining applications for major capital improvement rent increases and rent increases for improvements in individual apartment services, equipment and facilities, including proposals to improve the provisions of law governing such applications and to make more efficient the administration of such provisions; (5) the criteria and procedures employed in resolving applications for rent decreases by reason of decreased building-wide or apartment services or facilities or for noncompliance with other provisions of the rent control or stabilization laws; (6) provisions of law and regulation and procedures employed to prevent harassment; and (7) the criteria and procedures employed in resolving complaints of rent overcharges and fair market rent appeals. (e) Such report shall also review: (1) the criteria and procedures employed in administering the high income rent decontrol and the high rent vacancy decontrol programs; (2) proposals for the use of voluntary binding arbitration to resolve disputes in the rent regulation system; (3) the operation of the rent registration system and proposals for the improvement of such system; (4) proposals to improve the quality of administrative determinations and to expedite the handling of cases of all types; and (5) the appropriate funding and staffing of all programs and activities required to administer the rent regulation system. (f) Such report shall also analyze the methodology used to compute the vacancy rate and whether such rate is a valid indicator of a housing emergency and make recommendations to change how vacancy rates are currently calculated, whether gross vacancy rates are a better measure to use than net vacancy rates when determining whether a housing emergency exists within a particular community. Such report shall also analyze vacancy rates for particular classes of housing based on the level of rent. (g) The division of housing and community renewal shall provide technical assistance, staff and other such services to the co- chairs of the study group on rental housing as may reasonably be required to prepare the report or reports. Sec. 27. Separability clause. If any provision of this act or the application thereof shall for any reason be adjudged by any court of competent jurisdiction to be invalid or unconstitutional, such judgment shall not affect, impair or invalidate the remainder of this act but shall be confined in its operation to the provision thereof directly involved in the controversy in which such judgment shall have been rendered; provided, however, that in the event that the entire system of rent control or stabilization shall be finally adjudged invalid or unconstitutional by a court of competent jurisdiction because of the operation of any provision of this act, such provision shall be null, void and without effect and all the other provisions of this act which can be given effect without such invalid provision, as well as provisions of any other law, relating to the control of or stabilization of rent, as in effect prior to the enactment of this act and as otherwise amended by this act, shall continue in full force and effect for the period of effectiveness set forth in sections twelve, thirteen and fourteen of this act. Sec. 28. Any rule or regulation or form necessary for the implementation of this act, or any section of this act, is authorized and directed to be made and completed within 180 days after the date on which this act becomes a law. Sec. 29. This act shall take effect immediately; provided however that as to proceedings pending before the division of housing and community renewal on the effective date of this act, sections twenty-two, twenty-three, twenty-four and twenty-five of this act shall apply only to proceedings which were docketed by the division of housing and community renewal on or after July 1, 1991; and provided that the income certification forms provided for in sections three, five, seven and nine of this act shall not be transmitted until on or after January 1, 1994; provided that the amendments to the city rent and rehabilitation law made by 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 that the amendments to the rent stabilization law of nineteen hundred sixty-nine made by this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26- 520 of such law; and provided that the amendments to the emergency tenant protection act of nineteen seventy-four made by this act shall expire on the same date as such act expires and shall not affect the expiration of such act as provided in section 17 of chapter 576 of the laws of 1974; and provided that the amendments to the emergency housing rent control law made by this act except for the amendments contained in section fourteen 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. ============================================================= =============================================================


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