New York Rent Laws
CRRL Table of Contents

The City Rent and Rehabilitation Law [CRRL]

NEW YORK CITY RENT CONTROL CITY RENT AND REHABILITATION LAW N.Y.C. Admin. Code Sections 26-401 -- 26-415 TABLE OF CONTENTS Section 26-401. Declaration and findings. 26-402. Short title. 26-403. Definitions. 26-403.1. High income rent decontrol. 26-404. City rent agency; division of housing and community renewal. 26-405. General powers and duties of the city rent agency. 26-406. Tax abatement for properties subject to rent exemption orders. 26-407. Labor cost pass-along. 26-408. Evictions. 26-409. Investigation; records; reports. 26-410. Procedure. 26-411. Judicial review. 26-412. Prohibitions. 26-413. Enforcement and penalties. 26-414. Decontrol on basis of vacancy rate. 26-415. Surveys of need for rent control. ***************************************************** 26-401. Declaration and findings. a. The council hereby finds that a serious public emergency continues to exist in the housing of a considerable number of persons in the city, which emergency was created by war, the effects of war and the aftermath of hostilities; that such emergency necessitated the intervention of federal, state and local government in order to prevent speculative, unwarranted and abnormal increases in rents; that there continues to exist an acute shortage of dwellings; that unless residential rents and evictions continue to be regulated and controlled, disruptive practices and abnormal conditions will produce serious threats to the public health, safety and general welfare; that to prevent such perils to health, safety and welfare, preventive action through enactment of local legislation by the council continues to be imperative; that such action, as a temporary measure to be effective until it is determined by the council that such emergency no longer exists, is necessary in order to prevent exactions of unjust, unreasonable and oppressive rents and rental agreements and to forestall profiteering, speculation and other disruptive practices tending to produce threats to the public health that the transition from regulation to a normal market of free bargaining between landlord and tenant, while still the objective of state and city policy, must be administered with due regard for such emergency; that in order to prevent uncertainty, hardship and dislocation, the provisions of this chapter are declared to be necessary and designed to protect the public health, safety and general welfare. b. The council further declares that it is city policy to utilize the powers conferred by this chapter, in a manner consistent with the purposes and provisions thereof, to encourage and promote the improvement and rehabilitation of the housing accommodations subject to control hereunder, for the purpose of protecting the public health, safety and general welfare. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-402. Short title. This chapter shall be known and may be cited as the city rent and rehabilitation law. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-403. Definitions. When used in this chapter, unless a different meaning clearly appears from the context, the following terms shall mean and include: a. "Administrator." The commissioner of the state division of housing and community renewal. b. "City rent agency." The state division of housing and community renewal. c. "Documents." Records, books, accounts, correspondence, memoranda and other documents, drafts and copies of any of the foregoing. d. "Federal act." The emergency price control act of nineteen hundred forty-two, and as thereafter amended and as superseded by the Housing and rent act of nineteen hundred forty-seven, and as the latter was thereafter amended prior to may first, nineteen hundred fifty, and regulations adopted pursuant thereto. e. "Housing accommodation." 1. Except as otherwise provided in paragraph two of this subdivision e, any building or structure, permanent or temporary or any part thereof, occupied or intended to be occupied by one or more individuals as a residence, home, sleeping place, boarding house, lodging house or hotel, together with the land and buildings appurtenant thereto, and all services, privileges, furnishings, furniture and facilities supplied in connection with the occupation thereof, and any plot or parcel of land (as distinguished from any building constructed or placed thereon) which is not owned by the city and which was rented prior to may first, nineteen hundred fifty, for the purpose of permitting the tenant thereof to construct his or her own private dwelling (as such term "private dwelling" is defined in subdivision six of section four of the multiple dwelling law) thereon and on which there exists such a private dwelling owned and occupied by a tenant of such plot or parcel, or on or after July first, nineteen hundred seventy-one such private dwelling is owned or occupied by a member of the tenant's immediate family regardless of whether the member of the tenant's immediate family was in occupancy of the private dwelling with the tenant prior to the transfer of title or possession or thereafter took occupancy of the private dwelling pursuant to such transfer of title or possession, including: (a) Entire structures or premises as distinguished from the individual housing accommodations contained therein, wherein twenty-five or less rooms are rented or offered for rent by any lessee, sublessee, or other tenant of such entire structure or premises; and (b) Housing accommodations which, under subparagraph (i) of paragraph two of this subdivision e, are or at any time become exempt from or not subject to control and which, while in such status, are certified by a city agency having jurisdiction to be a fire hazard or in a continued dangerous condition or detrimental to life or health; and the subsequent removal of the conditions on which such certification is based shall not cause any such housing accommodation to become exempt from or not subject to control; and (c) Notwithstanding any other provision of this chapter, all housing accommodations in any multiple dwelling aided by a loan made by the city under article eight of the private housing finance law; provided that where any such housing accommodation, if this subparagraph (c) were not applicable thereto, would not be subject to rent control under this chapter and the regulations thereunder prior to the date on which rent control with respect to such multiple dwelling is required by the provisions of such article eight to begin, this subparagraph (c) shall operate to make such housing accommodation subject to rent control under this chapter and the regulations thereunder only on and after such date; and provided further that if any such housing accommodation, on the date on which rent control with respect thereto ceases to be required by such article eight, would not be subject to rent control, or would be eligible for decontrol on the landlord's application, under the provisions of this chapter and the regulations thereunder, if this subparagraph (e) were not applicable thereto, then such housing accommodation, after such date, shall not be subject to rent control, or shall be eligible for decontrol, as the case may be, in the same manner as if this subparagraph (c) had not been applicable to such housing accommodation. 2. The term "housing accommodation" shall not include: (a) structures in which all of the housing accommodations are exempt or not subject to control under this chapter or any regulation issued thereunder; or (b) a hospital, convent, monastery, asylum, public institution, or college or school dormitory or any institution operated exclusively for charitable or educational purposes on a nonprofit basis; or (c) notwithstanding any previous order, finding, opinion or determination of the state rent commission, housing accommodations in any establishment which on March first, nineteen hundred fifty, was and still is commonly regarded as a hotel in the community in which it is located and which customarily provides hotel services such as maid service, furnishing and laundering of linen, telephone and secretarial or desk service, use and upkeep of furniture and fixtures and bellboy service, provided, however, that the term "hotel" shall not include any establishment which is commonly regarded in the community as a rooming house, nor shall it include any establishment not identified or classified as a "hotel," "transient hotel" or "residential hotel" pursuant to the federal act irrespective of whether such establishment either provides some services customarily provided by hotels, or is represented to be a hotel, or both, and provided further that housing accommodations in hotels which have been and still are occupied by a tenant who has resided in such hotel continuously since December second, nineteen hundred forty-nine, so long as such tenant occupies the same, shall continue to remain subject to control under this chapter; or (d) Any motor court, or any part thereof; any trailer or trailer space used exclusively for transient occupancy or any part thereof (provided that nothing herein contained shall be construed as legalizing or authorizing any use or occupancy of a trailer or trailer space where prohibited by law); or any tourist home serving transient guests exclusively, or any part thereof; or (e) Nonhousekeeping, furnished housing accommodations, located within a single dwelling unit not used as a rooming or boarding house, but only if: (1) no more than two tenants for whom rent is paid (husband and wife being considered one tenant for this purpose), not members of the landlord's immediate family, live in such dwelling unit; and (2) the remaining portion of such dwelling unit is occupied by the landlord or his or her immediate family; or (f) Housing accommodations owned and operated by the united states, the state of New York, or the New York city housing authority; or owned by the city and under the jurisdiction of the city department of housing preservation and development pursuant to the New York city charter, or owned and operated by the city; or housing accommodations in buildings in which rentals are fixed by or subject to the supervision of the state commissioner of housing and community renewal; (g) Housing accommodations in buildings operated exclusively for charitable purposes on a nonprofit basis; or (h) Except as otherwise provided in item six of subparagraph (i) of this paragraph two, housing accommodations which were completed on or after February first, nineteen hundred forty-seven, provided, however, that, the former structure or any lesser portion thereof, was not vacated, on or after the effective date of this first provision of this subparagraph (h), other than by voluntary surrender of possession or in the manner provided in this chapter and provided further that maximum rents established under the veterans' emergency housing act, for priority constructed housing accommodations completed on or after February first, nineteen hundred forty-seven, shall continue in full force and effect, if such accommodations are being rented to veterans of world war ii or their immediate families who, on June thirtieth nineteen hundred forty-seven, either occupied such housing accommodations or had a right to occupy such housing accommodations at any time on or after July first, nineteen hundred forty-seven, under any agreement whether written or oral; or (i) Except as otherwise provided in subparagraphs (b) and (c) of paragraph one of this subdivision e: (1) housing accommodations created by a change from a nonhousing use to a housing use on or after February first, nineteen hundred forty- seven, but only if the space comprising such accommodations was devoted to a nonhousing use on February first, nineteen hundred forty- seven; or (2) Additional housing accommodations, other than rooming house accommodations, created by conversion on or after February first, nineteen hundred forty-seven, provided, however, that any housing accommodations created as a result of any such conversion on or after May first, nineteen hundred fifty, shall continue to be subject to rent control as provided for herein unless the state rent commission, prior to may first, nineteen hundred sixty-two, issued an order decontrolling them, or the city rent agency, on or after such date, issues an order decontrolling them, and the city rent agency shall issue such an order if there has been a structural change involving substantial alterations or remodeling and such change has resulted in additional housing accommodations consisting of self-contained family units as defined by regulations issued by the city rent agency, with due regard for the shortage of housing accommodations suitable for family occupancy and for the purposes of this chapter in relation thereto; and provided further, that any such order of decontrol of the state rent commission or the city rent agency shall remain effective after April thirtieth, nineteen hundred sixty-two only so long as the housing accommodations are not occupied for other than single family occupancy; and provided further, that any such order of decontrol shall not apply to that portion of the original housing accommodations occupied by a tenant in possession at the time of the conversion, but only so long as that tenant continues in occupancy; and provided further, that no such order of decontrol shall be issued unless such conversion occurred after the entire structure, or any lesser portion thereof as may have been thus convened, was vacated by voluntary surrender of possession, or in the manner provided in this chapter, or (where vacated prior to may first, nineteen hundred sixty-two) in the manner provided by section five of the state rent act, and provided funkier that notwithstanding any of the foregoing provisions of this item two, no such order of decontrol shall be issued with respect to housing accommodations of any type resulting from conversion, after April thirtieth, nineteen hundred sixty-two, to rooming house accommodations or to single room occupancy accommodations, and such resulting accommodations shall continue to be housing accommodations subject to rent control under this chapter and the regulation thereunder; or (3) Housing accommodations rented after April first, nineteen hundred fifty-three, which were or are continuously occupied by the owner thereof for a period of one year prior to the date of renting; provided, however, that this item three shall not apply where the owner acquired possession of the housing accommodation after the issuance of a certificate of eviction under subdivision two of section five of the state rent act or under subdivision b of section 26-408 of this chapter within the two year period immediately preceding the date of such renting, and provided further that this item three shall not apply to any such housing accommodation rented on or after may first, nineteen hundred sixty-two, where an exemption of any housing accommodation in the same building was obtained under paragraph (h) of subdivision two of section two of the state rent act or has been previously obtained under this item three, and provided further, that this exemption shall remain effective only so long as the housing accommodations are not occupied for other than single family occupancy, or (4) Housing accommodations in one or two family houses which were or shall become vacant on or after April first, nineteen hundred fifty- three, provided however, that this exemption shall remain effective only so long as the housing accommodations are not occupied for other than single family occupancy, or * So in original. No paragraph (5) was enacted. (6) (i) Such housing accommodations resulting from substantial demolition (as such accommodations are defined in this item six), as are decontrolled by order of the city rent agency pursuant to this item six; provided that all housing accommodations resulting from substantial demolition which are not so decontrolled shall continue to be housing accommodations subject to rent control under this chapter and the regulations thereunder. (ii) The term "housing accommodation resulting from substantial demolition," as used herein, shall mean any housing accommodation (a) which is created on or after may first, nineteen hundred sixty-two, as a result of the substantial demolition of a multiple dwelling and the reconstruction of such building m such manner as to retain any portion thereof existing prior to such demolition, and (b) which is so created after the issuance of one or more certificates permitting the eviction of any tenant or tenants of such multiple dwelling for the purpose of effecting such demolition. (iii) No order shall be issued under this item six decontrolling any housing accommodation resulting from substantial demolition unless, after such reconstruction, all housing accommodations in the building are self-contained family units as defined by regulations issued by the city rent agency, with due regard for the shortage of housing accommodations suitable for family occupancy and for the purposes of this chapter in relation thereto. (iv) The city rent agency shall issue regulations, with due regard for such shortage and purposes, specifying minimum requirements for qualifying any housing accommodation resulting from substantial demolition as suitable for occupancy by larger families (including, with respect to the individual unit, but not limited to, number of rooms, space suitable for sleeping purposes and total floor area) and likewise prescribing, subject to such variations and classifications as such agency may determine to be reasonably necessary, the ratio between the total number of housing accommodations resulting from substantial demolition In the building, and the number of such accommodations which must meet such requirements for larger family occupancy, in order that a decontrol order may be granted hereunder. (v) The city rent agency shall issue an order decontrolling all of the housing accommodations resulting from substantial demolition in the building, if such accommodations meet the requirements of sub- item (iii) of this item six and if the prescribed proportion thereof meets the requirements of sub-item (iv) of this Item six for larger family occupancy; provided that (a) if all such accommodations meet the requirements of such sub-item (iii), but less than the prescribed proportion thereof meet the requirements of such sub-item (iv), then the city rent agency shall issue an order decontrolling only those accommodations which meet the requirements of both such sub-items; and (b) any order of decontrol issued under this item six shall remain effective only so long as the accommodations decontrolled by such order are not occupied for other than single family occupancy. (vi) in the case of any housing accommodations vacated on or after March twenty-sixth, nineteen hundred sixty-four, no order of decontrol shall be issued under this item six for any housing accommodations resulting from substantial demolition thereof unless such reconstruction occurred after the structure was vacated by voluntary surrender of possession, or in the manner provided in this chapter; or (7) (i) Individual housing accommodations having unfurnished maximum rents of two hundred and fifty dollars or more per month as of April first, nineteen hundred sixty, or furnished maximum rents of three hundred dollars or more per month as of April first, nineteen hundred sixty, which are or become vacant on or after the effective date of this item seven; or (ii) On and after October first, nineteen hundred sixty-four individual housing accommodations having unfurnished maximum rents of three hundred dollars or more per month as of April first, nineteen hundred sixty, or furnished maximum rents of three hundred and sixty dollars or more per month as of April first, nineteen hundred sixty; provided, however, that where any such housing accommodation is occupied by a tenant whose household contains one or more children attending an elementary or secondary school, such housing accommodation shall continue to remain subject to control under this chapter and the regulations thereunder until June thirtieth, nineteen hundred sixty-five; and provided further, that where such housing accommodation on March twenty-sixth, nineteen hundred sixty-four is occupied by a tenant whose household contains four or more related persons, it shall continue to remain subject to control under this chapter and the regulations thereunder so long as such tenant remains in occupancy; or (iii) On and after April first, nineteen hundred sixty-five individual housing accommodations having unfurnished maximum rents of two hundred and fifty dollars to two hundred ninety-nine dollars and ninety-nine cents, inclusive, per month as of April first, nineteen hundred sixty, or furnished maximum rents of three hundred dollars to three hundred fifty-nine dollars and ninety- nine cents inclusive, per month as of April first, nineteen hundred sixty; provided, however, that where any such housing accommodation is occupied by a tenant whose household contains one or more children attending an elementary or secondary school, such housing accommodation shall continue to remain subject to control under this chapter and the regulations thereunder until June thirtieth, nineteen hundred sixty-five; and provided further, that where such housing accommodations on March twenty-sixth, nineteen hundred sixty-four is occupied by a tenant whose household contains four or more related persons, it shall continue to remain subject to control under this chapter and the regulations thereunder so long as such tenant remains in occupancy. (iv) The exemptions provided for in this item seven shall remain effective only so long as the housing accommodations are not occupied for other than single family occupancy. (v) The term "related persons," as used in this item seven, shall be limited to the tenant and a parent, grandparent, child, stepchild, grandchild, brother or sister of the tenant or of the tenant's spouse or the spouse of any of the foregoing, who customarily occupied the housing accommodation on and before the effective date of this item seven. The tenant's spouse or an unmarried child or grandchild of the tenant who temporarily resided elsewhere on the effective date of this item seven because of attendance at an educational institution or service in the armed forces of the United States shall be deemed to be a related person in occupancy. (8) No more than two housing accommodations in any one year period in an owner-occupied structure containing six or fewer housing accommodations which are or become vacant on or after August first, nineteen hundred seventy by voluntary surrender or pursuant to section 26-408 of this chapter; provided, however, that this exemption shall remain effective only so long as the housing accommodations are not occupied for other than residential dwelling purposes and provided further, that if the city rent agency shall make a finding of harassment in violation of subdivision d of section 26-412 of this chapter with respect to a housing accommodation in a structure containing six or less housing accommodations, in addition to all other criminal or civil fines, penalties injunctive relief and enforcement penalties and remedies authorized by section 26-413 of this chapter, no housing accommodation in such structure shall be decontrolled pursuant to this item eight until a minimum period of three years has elapsed since the making of such finding of harassment by the city rent agency. Structures containing six or fewer housing accommodations shall be considered to be structures containing six or fewer housing accommodations for the purposes of this item eight, notwithstanding that such structures shall contain commercial accommodations in addition to such housing accommodations. (9) Housing accommodations which became vacant on or after June thirtieth nineteen hundred seventy-one, provided, however, that this exemption shall not apply 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 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 or her use or occupancy of the housing accommodations and provided, further, however, that nothing contained herein shall be deemed to preclude the applicability to such housing accommodations of the emergency tenant protection act of nineteen seventy-four. (10) Housing accommodations not occupied by the tenant, not including subtenants or occupants, as his or her primary residence, as determined by a court of competent jurisdiction. No action or proceeding shall be commenced seeking to recover possession on the ground that a housing accommodation is not occupied by the tenant as his or her primary residence unless the owner or lessor shall have given thirty days notice to the tenant of his or her intention to commence such action or proceeding on such grounds. (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. 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 which is or becomes vacant on or April first, nineteen hundred ninety-four. 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. f. Landlord. An owner, lessor, sublessor, assignee, or other person receiving or entitled to receive rent for the use or occupancy of any housing accommodation or an agent of any of the foregoing. g. Maximum rent. The maximum lawful rent for the use of housing accommodations. Maximum rents may be formulated in terms of rents and other charges and allowances. h. Person. An individual, corporation, partnership, association, or any other organized group of individuals or the legal successor or representative of any of the foregoing. i. Rent. Consideration, including any bonus, benefit or gratuity demanded or received for or in connection with the use or occupancy of housing accommodations or the transfer of a lease of such housing accommodations. j. State Enabling Act. The local emergency housing rent control act. k. State Rent Act. The emergency housing rent control law. 1. State Rent Commission. The temporary state housing rent commission created by the emergency housing rent control law. m. Tenant. A tenant, subtenant, lessee, sublessee, or other person entitled to the possession or to the use or occupancy of any housing accommodation. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 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 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 have a maximum rent of two thousand dollars or more per month are required to complete the certification form; (ii) that tenants have protections available to them which are designed to prevent harassment; (iii) that 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. ***************************************************** 26-404. City rent agency; division of housing and community renewal. The division of housing and community renewal shall have charge of and conduct through its own counsel any proceeding under this chapter of the code, except for the provisions of subdivision n of section 26-405 and section 26-406 of this chapter which shall remain under the jurisdiction of the department of housing preservation and development. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-405. General powers and duties of the city rent agency. a. (1) At the time this chapter shall become effective, the city rent agency shall establish maximum rents which, subject to the provisions of subdivision b of this section, shall be the maximum rents in effect on April thirtieth, nineteen hundred sixty-two pursuant to the state rent act and the regulations thereunder. (2) (a) Notwithstanding the foregoing provision of this subdivision, and except as provided in subparagraph (b) of this paragraph two, effective August first, nineteen hundred seventy, the maximum rent in effect on July thirty-first, nineteen hundred seventy shall be adjusted as follows: (i) for any individual housing accommodation for which one or more but less than two full fifteen per centum rent increases has been granted since may first, nineteen hundred fifty-three pursuant to former subparagraph (d) of paragraph one of subdivision g of this section the maximum rent shall be increased by eight per centum. (ii) For any individual housing accommodation for which no full fifteen per centum rent increase has been granted since may first, nineteen hundred fifty-three pursuant to former subparagraph (d) of paragraph one of subdivision g of this section the maximum rent shall be increased by fifteen per centum, except that if there was no such increase for any individual housing accommodation for which a first rent was established pursuant to former subdivision m of this section after July thirty-first, nineteen hundred sixty-five and before August first nineteen hundred sixty-eight, the maximum rent shall be increased by five per centum, and except that if there was no such increase for any individual housing accommodation for which a first rent was established pursuant to such subdivision on or after August first, nineteen hundred sixty- eight there shall be no increase in maximum rent. On or after August first, nineteen hundred sevens a landlord may file application for labor cost rent adjustment pursuant to subparagraph (l) of paragraph (1) of subdivision g of this section. In lieu of such labor cost rent adjustment, the landlord of a building with twenty or fewer housing accommodations shall have the option of filing for a five per centum increase in maximum rent for any individual housing accommodation for which two or more full fifteen per centum increases have been granted since may first nineteen hundred fifty-three pursuant to former subparagraph (d) of paragraph one of subdivision g of this section. Nothing contained in this subparagraph (a) however, shall have the effect of establishing the maximum rent in an amount less than the maximum rent in effect on July thirty-first, nineteen hundred seventy nor of increasing by more than fifteen per centum the maximum rent for any housing accommodation. (b) Where the maximum rent in effect on July thirty- first, nineteen hundred seventy for any individual housing accommodation is less than sixty dollars per month such rent shall be increased effective August first, nineteen hundred seventy by ten dollars per month where the housing accommodation is comprised of three rooms or less and by fifteen dollars per month where the housing accommodation is comprised of more than three rooms. (c) Where a lease is in effect for any housing accommodation on August first nineteen hundred seventy, no adjustment of maximum rent for such accommodation shall become effective until the expiration of such lease. Where a h accommodation becomes vacant on or after August first, nineteen hundred seventy and before January first, nineteen hundred seventy-two by voluntary surrender of possession by the tenant the maximum rent shall be increased by no more than fifteen per centum over the maximum rent established for such accommodation at the time the vacancy occurred, provided that a report is filed with the city rent agency as prescribed by its regulations. If the city rent agency shall make a finding of harassment in violation of subdivision d of section 26-412 of this chapter for the purpose of obtaining such a vacancy, in addition to all other civil or criminal penalties, injunctive relief and enforcement remedies authorized by section 26-413 of this chapter, no housing accommodation in the building shall thereafter be entitled to the benefit of a rental increase as a result of becoming vacant between the aforesaid dates. (d) The total of (i) the increase pursuant to subparagraph (a) of this paragraph or (ii) any increases granted between December thirty-first, nineteen hundred sixty-nine and December thirty- first; nineteen hundred seventy-one pursuant to subparagraph (a), (b), or (c) of paragraph one of subdivision g of this section and (iii) any increase granted on or after the effective date of this paragraph pursuant to subparagraph (1) of paragraph one of subdivision g of this section shall not exceed fifteen per centum of the "1970 base rent." For purposes of this subparagraph, the "1970 base rent" is the maximum rent on July thirty-first, nineteen hundred seventy minus the amount of any increase granted between December thirty-first, nineteen hundred sixty-nine and July thirty-first, nineteen hundred seventy pursuant to subparagraph (a), (b), or (c) of paragraph one of subdivision g of this section. This subparagraph shall not operate to decrease any maximum rent existing on its effective date. (e) The rent increases provided for in this paragraph two shall be collectible upon the landlord's filing a report with the city rent agency on forms to be prescribed by such agency, including simplified forms for landlords of buildings with twelve or fewer housing accommodations, and giving such notice to the tenant as such agency may prescribe, subject to adjustment upon order of the city rent agency. The report shall contain a certified statement by the landlord that there is no legally habitable rent controlled housing accommodation in the building which has not been rented for a period of six months or more on the date of the filing of such report, or that if there is such a housing accommodation, the reasons it has not been rented is that it is being altered pursuant to a permit issued by the department of buildings no later than three months after the vacancy commenced and that the alteration is of such a nature that the accommodation must be kept vacant while it is being made or for such other cause found by the city rent agency not to be inconsistent with the purpose of this chapter, provided further that in the case of an alteration It is commenced within sixty days from the issuance of said permit. A copy of the permit and the application therefor shall accompany the report. No report shall be accepted for filing and no rent increase provided for in this paragraph two shall be collected in the absence of any such certified statement by the landlord. Any excess shall be credited to the tenants in full commencing with the rental payment following the receipt by the landlord of such order of adjustment. If such report is filed on or before October thirty-first, nineteen hundred seventy, the increase shall take effect August first, nineteen hundred seventy. If the report is filed thereafter, such increase shall take effect with the first rental payment following filing. (f) The rent increases provided for in this paragraph two shall not be collected for the period between March thirty-first, nineteen hundred and seventy- one and December thirty-first, nineteen hundred seventy-one until the landlord shall have filed with the city rent agency a certified statement attesting that for every month for which he or she has received a rent increase pursuant to subparagraphs (a) and (b) of this paragraph two, he or she has expended or incurred in the operation, maintenance and improvements of the housing accommodations from which increases were collected an amount which equals the amount expended per month for such purpose averaged over the preceding five years, or such lesser period that he or she has been landlord of such properties, plus ninety per centum of all increased rents so collected. (3) The city rent agency shall establish maximum rents to be effective January first, nineteen hundred seventy- two by dividing the maximum gross building rental from all housing accommodations in the property whether or not subject to or exempt from control under this chapter by the number of such accommodations, after giving consideration to such factors as may be prescribed by formula, such as size and location of housing accommodations and number of rooms. Such maximum gross building rental shall be computed on the basis of real estate taxes, water rates and sewer charges and an operation and maintenance expense allowance, a vacancy allowance not in excess of two per cent, and a collection loss allowance, both as prescribed by such agency, and an eight and one-half per centum return on capital value. The operating and maintenance expense allowance shall include provision for the cost of fuel, utilities, payroll, maintenance repairs, replacement reserves and miscellaneous charges attributed to the property, excluding mortgage interest and amortization, and may be varied by the agency for different types of properties depending upon such factors as the year of construction, elevator or non- elevator buildings, the average number of rooms per individual housing accommodations in the building. Capital value shall be equalized assessed valuation as established pursuant to article twelve-a of the real property tax law. Where the property receives income from sources other than such housing accommodations, the taxes, water and sewer charges and the capital value attributed to the portion consisting of housing accommodations shall be in the same ratio of the total taxes, water and sewer charges (where not computed separately) and the total capital value as the gross income from such portion consisting of housing accommodations bears to the total gross income from the property, as prescribed by the agency. The agency shall report to the council on or before October fifteenth, nineteen hundred seventy-one as to the status of preparation of the formulas necessary to implement the rent adjustments to be effective January first, nineteen hundred seventy-two. (4) The city rent agency shall establish maximum rents effective January first, nineteen hundred seventy-four and biennially thereafter by adjusting the existing maximum rent to reflect changes, if any, in the factors which determine maximum gross building rental under paragraph three of this subdivision except that commencing January first, nineteen hundred eighty-two, said maximum rent shall no longer recognize or reflect the adjustment allocable to changes in heating costs after April ninth, nineteen hundred seventy-nine. Notwithstanding any other provisions in this paragraph to the contrary, commencing January first, nineteen hundred seventy-four, the city rent agency shall require each owner to make available for examination his or her books and all other financial records relating to the operation of each building under his or her ownership containing accommodations subject to this chapter at least once every three years for the purpose of determining whether the maximum formula rent is appropriate for each building in light of actual expenditures therefor and shall also alter such formula rent to take into account significant variations between the formula and actual cost experience. The agency shall also establish maximum costs for the factors under paragraph three of this subdivision which determine maximum gross building rental to preclude increases which would otherwise results from excessive expenditures in the operation and maintenance of the building. The return allowed on capital may be revised from time to time by local law. (5) Where a maximum rent established pursuant to this chapter on or after January first, nineteen hundred seventy-two, is higher than the previously existing maximum rent, the landlord may not collect more than seven and one-half percentum increase from a tenant in occupancy on such date in any one year period, provided however, that where the period for which the rent is established exceeds one year, regardless of how the collection thereof is averaged over such period, the rent the landlord shall be entitled to receive during the first twelve months shall not be increased by more than seven and one-half percentum over the previous rent and additional annual rents shall not exceed seven and one-half percentum of the rent paid during the previous year. Notwithstanding any of the foregoing limitations in this paragraph five, maximum rent shall be increased if ordered by the agency pursuant to subparagraphs (d), (e), (f), (g), (h), (i), (k), (1), (m) or (n) of paragraph one of subdivision g of this section. Commencing January first, nineteen hundred eighty, rent adjustments pursuant to subparagraph (n) of paragraph one of subdivision g of this section shall be excluded from the maximum rent when computing the seven and one-half percentum increase authorized by this paragraph five. Where a housing accommodation is vacant on January first, nineteen hundred seventy-two, or becomes vacant thereafter by voluntary surrender of possession by the tenants, the maximum rent established for such accommodations may be collected. (6) Where a new maximum rent has been established pursuant to former subdivision m of this section or, following the repeal of such subdivision, pursuant to subparagraph (m) of paragraph one of subdivision g of this section, a new maximum rent shall not be established pursuant to paragraph three of this subdivision. Except with respect to a housing accommodation to which the preceding sentence applies, where the maximum rent on December thirty-first, nineteen hundred seventy-one is higher than the maximum rent established pursuant to paragraph three of this subdivision, such prior maximum rent shall continue in effect until the maximum rent under paragraph three, as adjusted from time to time pursuant to the provisions of this chapter, shall equal or exceed such prior maximum rent, at which time the maximum rent for such housing accommodations shall be as prescribed in this chapter. (7) Section eight housing assistance. (a) Notwithstanding any provision of this chapter, if during a rental period in which the landlord is eligible for an adjustment or establishment of rents pursuant to paragraph three or four of this subdivision, housing assistance payments are being made pursuant to section eight of the United States Housing Act of nineteen hundred thirty- seven, as amended, with respect to any housing accommodation covered by this chapter, the maximum rent collectible from the tenant in occupancy shall be the lesser of: (1) the maximum rent established pursuant to paragraph three of this subdivision as adjusted pursuant to this chapter, computed without regard to the limitations of paragraph five of this subdivision (provided that in any case the rent paid by the tenant pursuant to this chapter without regard to- this paragraph is higher than such rent, the rent paid shall be substituted for such rent), or (2) the contract or fair market rent approved for the housing accommodation pursuant to federal law or regulation. (b) Prior to the collection of any increase in maximum rent pursuant to this paragraph, the landlord shall advise the city rent agency of his or her intent to compute the maximum rent pursuant to this paragraph. (c) If a housing accommodation to which this subdivision applies ceases for any reason to be governed by this paragraph, the maximum rent collectible from the tenant shall be computed as if this paragraph had not applied and any adjustments thereto which would have been permitted pursuant to this chapter during the period such rent was set by this paragraph shall be proper rental adjustments. (8) Notwithstanding the provisions of this chapter, upon the sale in any manner authorized by law of a multiple dwelling which was previously subject to the provisions of such chapter and which was acquired by the city in a tax foreclosure proceeding or pursuant to article nineteen-a of the real property actions and proceedings law, for a dwelling unit which was subject to this chapter pursuant to the local emergency housing rent control act at the time the city so acquired title, is occupied by a tenant who was in occupancy at the time of acquisition and remains in occupancy at the time of sale, the maximum rent shall be the last rent charged by the city, or on behalf of the city, for such dwelling unit, which rent shall not exceed the rent computed pursuant to paragraph three of this subdivision, computed as of the time of such sale. This paragraph shall not apply to redemptions from city ownership pursuant to chapter four of title eleven of the code. (9) The city rent agency, prior to establishing biennially maximum base rents pursuant to this chapter and before establishing a maximum base rent which is different from the previously existing maximum base rent for dwellings covered by this law, shall hold a public hearing or hearings for the purpose of collecting information the city rent agency may consider in establishing maximum base rents. Notice of the date, time, location and summary of subject matter for the public hearing or hearings shall be published in the city record for a period of not less than fourteen days, and at least once in one or more newspapers of general circulation at least fourteen days immediately preceding each hearing date, at the expense of the city of New York, and the hearing shall be open for testimony from any individual, group, association or representative thereof who wants to testify. b. Such agency, to effectuate the purposes of this chapter, and in accordance with the standards set forth in paragraph two of subdivision c of this section may set aside and correct any maximum rent resulting from illegality, irregularity in vital matters or fraud, occurring prior to or after may first, nineteen hundred sixty-two. c. (1) whenever such agency determines that such action is necessary to effectuate the purposes of this chapter, it may also establish maximum rents for housing accommodations to which this chapter applies, where no maximum rent with respect thereto was in effect on April thirtieth, nineteen hundred sixty-two, or where no registration statement had been filed with respect thereto as required by the state rent act, or where for any other reason the provisions of subdivision a of this section are not susceptible to application to any such housing accommodations. (2) Such rents shall be established, having regard for the maximum rents for comparable housing accommodations or any other factors bearing on the equities involved, consistent with the purposes of this chapter. d. Where any housing accommodations, which are decontrolled (including those decontrolled by order) or exempted from control pursuant to the provisions of subparagraph (i) of paragraph two of subdivision e of section 26-403 of this chapter, are certified by any city agency having jurisdiction to be a fire hazard or in a continued dangerous condition or detrimental to life or health, the city rent agency shall establish maximum rents for such housing accommodations, having regard for the maximum rents for comparable housing accommodations or any other factors bearing on the equities involved consistent with the purposes of this chapter. e. Notwithstanding any other provision of this chapter, and subject to the provisions of subdivision f of this section, provision shall be made pursuant to regulations prescribed by the city rent agency for the establishment, adjustment and modification of maximum rents with respect to rooming house and single room occupancy accommodations, which shall include those housing accommodations subject to control pursuant to the provisions of subparagraph (c) of paragraph two of subdivision e of section 26-403 of this chapter (other than those accommodations subject to control under the last proviso of such subparagraph (c)), having regard for any factors bearing on the equities involved, consistent with the purposes of this chapter, to correct speculative, abnormal and unwarranted increases in rent. f. On or before June thirtieth, nineteen hundred sixty-two, the city rent agency shall undertake a survey and investigation of all factors affecting rents, rental conditions and rental practices with respect to rooming houses and single room occupancy accommodations within the city for the purpose of determining whether the provisions of this chapter and the regulations thereunder relating to the establishment and adjustment of maximum rents for rooming house and single room occupancy accommodations are reasonably designed to prevent exaction of unreasonable and oppressive rents. Not later than January fifteenth, nineteen hundred sixty-three, such agency shall submit to tine' council a report setting forth the results of such survey and investigation, together with the findings and recommendations of such agency and any amendments to this chapter and the regulations thereunder which such agency may deem necessary or desirable for the accomplishment of the purposes of this chapter in relation to such accommodations. During the period between may first, nineteen hundred sixty-two and the thirtieth day next succeeding the date of the submission of such report to the council (1) no application for an increase in any maximum rent for any rooming house or single room occupancy accommodations may be filed on any ground other than those specified in subparagraphs (f) and (g) of paragraph one of subdivision g of this section, and (2) no maximum rents for any rooming house or single room occupancy accommodations shall be increased on any grounds other than those specified in such subparagraphs (f) and (g), provided that where the maximum rents for any such accommodations were or are decreased prior to or during such period because of the landlord's reduction of living space, essential services, furniture, furnishings or equipment, and such reduction has been corrected, an application for restoration of the rent decrease may be filed and such rents may be adjusted so as to fix maximum rents which the city rent agency may determine to be proper, pursuant to the provisions of subdivision e of this section, but which shall not in any event exceed the maximum rents for such accommodations in effect immediately prior to such rent decrease. g. (1) The city rent agency may from time to time adopt, promulgate, amend or rescind such rules, regulations and orders as it may deem necessary or proper to effectuate the purposes of this chapter, including practices relating to recovery of possession; provided that such regulations can be put into effect without general uncertainty, dislocation and hardship inconsistent with the purposes of this chapter; and provided further that such regulations shall be designed to maintain a system of rent controls at levels which, in the judgment of such agency, are generally fair and equitable and which will provide for an orderly transition from and termination of emergency controls without undue dislocations, inflationary price rises or disruption. Provision shall be made, pursuant to regulations prescribed by such agency, for individual adjustment of maximum rents where: (a) The rental income from a property yields a net annual return of less than six per centum of the valuation of the property. (1) Such valuation shall be the current assessed valuation established by the city, which is in effect at the time of the filing of the application for an adjustment under this subparagraph (a); provided that: (i) The city rent agency may make a determination that the valuation of the property is an amount different from such assessed valuation where there has been a reduction in the assessed valuation for the year next preceding the effective date of the current assessed valuation in effect at the time of the filing of the application; and (ii) Such agency may make a determination that the value of the property is an amount different from the assessed valuation where there has been a bona fide sale of the property within the period February first, nineteen hundred sixty-one, and the time of filing of the application, as the result of a transaction at arm's length, on normal financing terms, at a readily ascertainable price, and unaffected by special circumstances such as but not limited to a forced sale exchange of property, package deal, wash sale or sale to a cooperative, provided however, that where an application was filed under this subparagraph (a) on or before the effective date of this subitem (ii), the city rent agency may determine the value of the property on the basis that there has been a bona fide sale of the property within the period between March fifteenth, nineteen hundred fifty-eight, and the time of the filing of the application. In determining whether a sale was on normal financing terms, such agency shall give due consideration to the following factors: (a) the ratio of the cash payment received by the seller to (1) the sales price of the property and (2) the annual gross income from the property; (b) the total amount of the outstanding mortgages which are liens against the property (including purchase money mortgages) as compared with the assessed valuation of the property; (c) the ratio of the sales price to the annual gross income of the property, with consideration given to the total amount of rent adjustments previously granted, exclusive of rent adjustments because of changes in dwelling space, services, furniture, furnishings or equipment, major capital improvements, or substantial rehabilitation; (d) the presence of deferred amortization in purchase money mortgages, or the assignment of such mortgage at a discount; (e) Any other facts and circumstances surrounding such sale which, in the judgment of such agency, may have a bearing upon the question of financing; and (iii) Where the assessed valuation of the land exceeds four times the assessed valuation of the buildings thereon, the city rent agency may determine a valuation of the property equal to five times the assessed valuation of the buildings, for the purposes of this subparagraph (a). (2) An application for an increase in any maximum rent under this subparagraph (a) of this paragraph one may not be filed with respect to any property if, on the date when the application is sought to be filed: (i) Less than two years have elapsed since the date of the filing of the last prior application for an increase under this subparagraph (a) of this paragraph one with respect to such property, which application resulted in the granting of an increase; or (ii) Less than two years have elapsed since the last sale of the property, and the application is based upon a sale price in excess of the assessed valuation. This subitem shall not apply, however, where less than two years have elapsed since the last sale of the property and the application is based upon a sale within such two-year period at a price in excess of the assessed valuation, if such price is less than the price in the last sale which meets the criteria heretofore specified in this subparagraph (a) occurring prior to two years before the application is sought to be filed and since February first, nineteen hundred sixty-one. (3) No increase in maximum rents shall be granted under this subparagraph (a) by the city rent agency while there is pending without final disposition any judicial proceeding to correct the final determination of the tax commission with respect to the assessed valuation of such property, (a) for the city fiscal year in which the landlord filed the application for such increase or (b) for the city fiscal year immediately preceding the filing of the application for such increase. (4) For the purposes of this subparagraph (a): (i) Net annual return shall be the amount by which the earned income exceeds the operating expenses of the property, excluding mortgage interest and amortization, and excluding allowances for obsolescence and reserves, but including an allowance for depreciation of two per centum of the value of the buildings exclusive of the land, or the amount shown for depreciation of the buildings in the latest required federal income tax return, whichever is lower; provided, however, that no allowance for depreciation of the buildings shall be included where the buildings have been fully depreciated for federal income tax purposes or on the books of the owner; and (ii) Test year shall be the most recent full calendar year or the landlord's most recent fiscal year or any twelve consecutive months ending not more than ninety days prior to the filing of the application for an increase; (b) Where a building contains no more than nineteen rental units and the landlord has not been fully compensated by increases in rental income sufficient to offset unavoidable increases in property taxes, fuel, utilities, insurance and repairs and maintenance, excluding mortgage interest and amortization, and excluding allowance for depreciation, obsolescence and reserves, which have occurred since the federal date determining the maximum rent; or (c) The landlord operates a hotel or rooming house or owns a cooperative apartment and has not been fully compensated by increases in rental income from the controlled housing accommodations sufficient to offset such unavoidable increases in property taxes and other costs as are allocable to such controlled housing accommodations, including costs of operation of such hotel or rooming house, but excluding mortgage interest and amortization, and excluding allowances for depreciation, obsolescence and reserves, which have occurred since the federal date determining the maximum rent or the date the landlord commenced the operation of the property, whichever is later; or (d) The landlord and tenant in occupancy voluntarily enter into a valid written lease in good faith with respect to any housing accommodation, which lease provides for an increase in the maximum rent on the basis of specified increased services, furniture, furnishings, or equipment, provided the city rent agency determines that the specified increased services, furniture, furnishings or equipment have a market value commensurate with the increased rent, the increase maximum rent is not in excess of fifteen per centum and the lease is for a term of not less than two years, provided further that a report of lease is filed as prescribed by regulations issued by the city rent agency or has been otherwise accepted by such agency, and provided further, that where the entire structure, or any lesser portion thereof was vacated by order of a city department having jurisdiction, on or after November twenty-second, nineteen hundred sixty-three and any tenants therein were relocated by the department of relocation, or such structure was boarded up by the department of real estate, such lease increases in subsequently executed leases shall not become effective for any housing accommodations in the structure until such departments have been reimbursed for expenses necessarily incurred in connection with the foregoing; provided further, however, that the landlord may obtain such lease increases without making such reimbursement where the vacating was caused by fire or accident not resulting from any unlawful act or omission on the part of the landlord; or (e) The landlord and tenant by mutual voluntary written agreement 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 (f) There has been since March first, nineteen hundred fifty-nine, an increase in the rental value of the housing accommodations as a result of a substantial rehabilitation of the building or housing accommodation therein which materially adds to the value of the property or appreciably prolongs its life, excluding ordinary repairs, maintenance and replacements; or (g) There has been since July first, nineteen hundred seventy, a major capital improvement required for the operation, preservation or maintenance of the structure. An adjustment under this subparagraph (g) shall be in an amount sufficient to amortize the cost of the improvements pursuant to this subparagraph (g) over a seven-year period; or (h) There has been since March first, nineteen hundred fifty-nine, in structures containing more than four housing accommodations, other improvements made with the express consent of the tenants in occupancy of at least seventy-five per centum of the housing accommodations; provided, however, that whenever the city rent agency has determined that the improvements proposed were part of a plan designed for overall improvement of the structure or increases in services, it may authorize increases in maximum rents for all housing accommodations affected upon the express consent of the tenants in occupancy of at least fifty-one per centum of the housing accommodations, and provided further that no adjustment granted hereunder shall exceed fifteen per centum unless the tenants have agreed to a higher percentage of increase, as herein provided; or (i) There has been, since March first, nineteen hundred fifty-nine, a subletting without written consent from the landlord or an increase in the number of adult occupants who are not members of the immediate family of the tenant, and the landlord has not been compensated therefor by adjustment of the maximum rent by lease or order of the city rent agency or pursuant to the state rent act or the federal act; or (j) The presence of unique or peculiar circumstances materially affecting the maximum rent has resulted in a maximum rent which is substantially lower than the rents generally prevailing in the same area for substantially similar housing accommodations. (k) The landlord has incurred, since January first, nineteen hundred seventy, in connection with and in addition to a concurrent major capital improvement pursuant to subparagraph (g) of this paragraph, other expenditures to improve, restore or preserve the quality of the structure. An adjustment under this subparagraph shall be granted only if such improvements represent an expenditure equal to at least ten per centum of the total operating and maintenance expenses for the preceding year. An adjustment under this subparagraph shall be in addition to any adjustment granted for the concurrent major capital improvement and shall be in an amount sufficient to amortize the cost of the improvements pursuant to this subparagraph over a seven-year period. (l) (1) The actual labor expenses currently incurred or to be incurred (pursuant to a collective agreement or other obligation actually entered into by the landlord) exceed the provision for payroll expenses in the current applicable operating and maintenance expense allowance under subdivision a of this section. No application pursuant to this subparagraph may be granted within one year from the granting of an adjustment in maximum rent pursuant to this subparagraph (1), or pursuant to subparagraph (a) of this paragraph. Any rent increase the applicant would be entitled to, or such portion thereof, shall not exceed a total increase of seven and one-half per centum per annum of the maximum rent as provided in paragraph five of subdivision a of this section. (2) Any adjustment in the maximum rents pursuant hereto shall be subject to: (i) The adjustment in maximum rent for any twelve-month period for any housing accommodation shall not exceed four percent of the maximum rent in effect on December thirty-first, nineteen hundred seventy-three. (ii) Where the increase in labor costs compensable herein is the result of an industry-wide collective bargaining agreement or a specific agreement in anticipation of, or subsequent to, an industry-wide collective bargaining agreement the adjustment shall be in such amount (subject to the above limitation) that the increased rental income from January first, nineteen hundred seventy-four to December thirty- first, nineteen hundred seventy-six shall reflect the increased labor costs for the period from April thirtieth, nineteen hundred seventy-three to April thirtieth, nineteen hundred seventy-six. (3) For the purpose of this subparagraph (1) the increase in labor costs shall be the amount by which the labor costs (a) actually in effect and paid, or (b) actually in effect and paid or payable and fixed and determined pursuant to agreement on the date of the filing of the application and projected over the period ending April thirtieth, nineteen hundred seventy-six, exceed the labor costs for the twelve calendar months immediately preceding the last day of the month in which the wage agreement became effective. (4) Notwithstanding any other provision of this chapter, the adjustment pursuant to this subparagraph shall be collectible upon the landlord's filing of a report with the city rent agency, subject to the provisions of subparagraph (e) of paragraph two of subdivision a of this section. (5) No increase in the maximum rent for any housing accommodation may be granted under this subparagraph (1) if on the date when the application is sought to be filed, less than the full term of such agreement has elapsed since the date of the filing of the last prior application for an increase with respect to such property under this subparagraph (1), which application resulted in the granting of an increase. Where, however, the landlord establishes the existence of unique or peculiar circumstances affecting an increase in labor costs for the property, the agency may accept such application where it determines that such acceptance is not inconsistent with the purposes of this local law. (6) The increase authorized herein shall be apportioned equitably among all the housing accommodations in the property whether or not subject to control under this chapter. (m) Where the rehabilitation or improvement of substandard or deteriorated housing accommodations has been financed under a governmental program providing assistance through loans, loan insurance or tax abatement or has been undertaken under another rehabilitation program not so financed but approved by the commissioner. (n) (1) The city rent agency shall hereafter promulgate in January of each year (i) findings regarding the price increase or decrease, respectively, for all types of heating fuel, including numbers two, four and six home heating oils, utility supplied steam, gas, electricity and coal, together with the sales and excise taxes thereon, on December thirty-first as compared to the January first in any year; (ii) standards for consumption of heating fuel, which shall be no more than two hundred twenty-five gallons per year per room commencing January first nineteen hundred eighty-one, for buildings using heating oils for heat with comparable unit limitations to be established by the city rent agency for utility supplied steam, gas, electricity, coal and any other types of heating systems, provided that such consumption standards for heating fuels shall be reduced by five gallons per room per year for heating oils and a comparable amount for other heating fuels for the next succeeding year and ten gallons per room per year for heating oils and a comparable amount for other heating fuels for two succeeding years thereafter. Such findings and consumption standards shall be published in the City Record. (2) To obtain a rental adjustment pursuant to this subparagraph (n), the landlord shall file a report with the agency on forms prescribed by the agency and shall: (i) certify the amount of heating fuel consumed in the calendar year immediately prior to the filing of the report; (ii) state the type of fuel used and the number of rooms in the building; (iii) certify that (a) all essential services required to be provided have been and will continue to be maintained and (b) there has been no rent reduction order issued pursuant to this chapter based on the landlord's failure to provide heat or hot water during the prior twelve months; (iv) certify on information and belief, in order to qualify for an additional rent increase pursuant to this subparagraph (n), that for an individual housing accommodation, if the maximum rent collectible pursuant to paragraph five of subdivision a of this section plus actual rent adjustments pursuant to this subparagraph (n) and such additional rent increase, is equal to or exceeds the maximum rent established pursuant to paragraphs three and four of subdivision a of this section plus the amount calculated pursuant to subitem (i) of item three and subitem (i) of item four of this subparagraph (n), each to be allocated to such housing accommodation pursuant to subitem (ii) of item four of this subparagraph (n), that the landlord will not be earning an amount m excess of the statutory return specified in subparagraph (a) of paragraph one of subdivision g of this section after collection of a rent increase pursuant to this subparagraph (n), with respect to a building or buildings serviced by a single heating plant; (v) report any funds received with respect to the housing accommodations from any governmental grant program compensating such landlord for fuel price increases during the period for which an adjustment is obtained pursuant to this subparagraph (n); (vi) provide such other information as the agency may require. (3) rent adjustments for controlled housing accommodations for annual heating fuel cost increases or decreases experienced after December thirty-first, nineteen hundred seventy-nine, shall be determined as follows: (i) the increase or decrease in heating fuel prices found by the agency for that year shall be multiplied by the actual consumption, not to exceed that year's consumption standard established pursuant to subitem (ii) of item one of this subparagraph; and (ii) seventy-five percentum of such amount shall be allocated among all rental space in the building, including commercial, professional and similar facilities, provided, for the purposes of this subparagraph (n), that living rooms, kitchens over fifty-nine square feet in area and bedrooms shall be considered rooms and that bathrooms, foyers and kitchenettes shall not be considered rooms. (4) Rent adjustments for controlled housing accommodations for heating fuel cost increases or decreases experienced from April ninth, nineteen hundred seventy-nine, through and including December thirty-first, nineteen hundred seventy-nine, shall be determined as follows: (i) the increase or decrease in heating fuel prices found by the agency for that period shall be multiplied by seventy- five percentum of the actual heating fuel consumption during the period from January first, nineteen hundred seventy- nine, through and including December thirty-first, nineteen hundred seventy- nine, which consumption shall not exceed seventy-five percentum of that year's consumption standard established by the agency; and (ii) such amount shall be allocated among all rental space in the building, including commercial, professional and similar facilities, provided, for the purposes of this subparagraph (n), that living rooms, kitchens over fifty-nine square feet in area and bedrooms shall be considered rooms and that bathrooms foyers and kitchenettes shall not be considered rooms. The city rent agency shall promulgate findings for heating fuel price increases or decreases and standards for consumption for the periods set forth in this item four thirty days after this local law is enacted. The standard for consumption shall be no more than seventy-five percentum of two hundred thirty gallons per room for buildings using heating oils for heat with comparable unit limitations to be established by the city rent agency for utility supplied steam, gas, electricity, coal and any other types of heating systems. (5) A landlord who files a report pursuant to this subparagraph and who falsely certifies shall not be eligible to collect any rent adjustment pursuant to this subparagraph for two years following a determination of a false certification and in addition, any adjustments obtained pursuant to this subparagraph for up to two years prior to such determination shall not be collectible for that same two year period. Such landlord shall also be subject to any additional penalties imposed by law. (6) A landlord annually may file a report pursuant to this subparagraph (n) after promulgation by the agency of the findings and consumption standards set forth in item one of subparagraph (n). A rent adjustment pursuant to such report shall be prospectively collectible upon the landlord's serving and filing the report, provided, however, that if a landlord files such report within sixty days of the promulgation of such findings and consumption standards, such rent adjustment shall be retroactive to and shall be effective as of the January first of the year in which the report is filed. (7) A landlord demanding or collecting a rent adjustment pursuant to this subparagraph (n) shall at the time of either the demand or collection issue to the tenant either a rent bill or receipt separately setting forth the amount of the adjustment pursuant to this subparagraph (n) and the amount of the maximum rent otherwise demanded or collected. If the tenant has been issued a valid senior citizen rent exemption order, the owner shall also separately state the amount payable by the senior citizen after the exemption. (8) In the event that a rent reduction order is issued by the city rent agency based upon the landlord's failure to provide heat or hot water to housing accommodations for which the landlord is collecting a rent adjustment pursuant to this subparagraph (n), the rent adjustment shall not be collected during the time such rent reduction order is in effect and for twelve months following the date of the restoration of the rent reduction. In addition, the landlord shall not be eligible to collect any subsequent rent adjustment pursuant to this subparagraph (n) until twelve months following the date of the restoration of the rent reduction. (9) In the event that the city rent agency promulgates a finding of a price decrease, if any landlord who has obtained a rent adjustment pursuant to this subparagraph (n) does not file a report for a rent adjustment pursuant to this subparagraph (n) within sixty days of the promulgation of such findings, then all rent adjustments obtained pursuant to this subparagraph (n) shall not be collectible for a period of twelve months. (10) Any rent adjustment obtained pursuant to this subparagraph (n) shall not be included in the maximum rent established pursuant to paragraph four or five of subdivision (a) of this section. (11) The city rent agency shall have the power to promulgate such regulations as it may consider necessary or convenient to implement and administer the provisions of this subparagraph (n). The regulations shall also require that any rent adjustment granted pursuant to this subparagraph (n) be reduced by an amount equal to any governmental grant received by the landlord compensating the landlord for any fuel price increases, but not required by the city, the agency or any granting government entity to be expended for fuel related repairs or improvements. (o) (1) There has been an increase in heating and heating fuel expenditures in a property resulting from a city-wide rise in heating fuel costs such that the verifiable expenditures for heating or heating fuel in a property for nineteen hundred seventy-four exceeds the verifiable expenditures for such heating or heating fuel during nineteen hundred seventy-three. (2) To obtain a rental adjustment pursuant to this subparagraph (o), the landlord must certify that he or she is presently maintaining all essential services required to be furnished with respect to the housing accommodations covered by such certification, and that he or she will continue to so maintain such essential services for the period of any such adjustment. (3) To obtain a rental adjustment pursuant to this subparagraph (o), the landlord must certify on information and belief that he or she will not be earning an amount in excess of the statutory return specified in subparagraph (a) of paragraph one of subdivision g of this section after collection of such rental adjustment, with respect to the building or buildings serviced by a single heating plant, and where the building, or buildings serviced by a single heating plant, contains forty-nine or fewer housing accommodations, the landlord must certify that the amount expended directly for heating or heating fuel in nineteen hundred seventy-four equalled or exceeded ten per cent of the total rental income which was derived from the property during nineteen hundred seventy-four; and, where the building, or buildings serviced by a single heating plant, contains fifty or more housing accommodations the landlord must certify that the amount expended directly for heating or heating fuel in nineteen hundred seventy-four equalled or exceeded seven and one-half percentum of the total rental income which was derived from the property during nineteen hundred seventy-four. (4) The total rental adjustments for a property to be allocated or deemed allocated pursuant to this subparagraph (o) shall not exceed one- half of the gross amount by which the total verifiable expenditures for heating or heating fuel for nineteen hundred seventy- four exceeds the total verifiable expenditures for such heating or heating fuel for nineteen hundred seventy-three. (5) Such total rental adjustments shall be allocated or deemed allocated pursuant to this subparagraph (o) to all housing accommodations subject to this chapter, to all other housing accommodations, and to all commercial, professional and similar facilities in or associated with the property in a manner to be determined by the agency. In no event shall any adjustment in maximum rent pursuant to this subparagraph (o) for any housing accommodations subject to this chapter exceed a monthly increase of two dollars per room, as defined by item eight below. In any apartment containing five or more rooms, any increase shall not exceed the total of nine dollars. (6) Any adjustment pursuant to this subparagraph (o) shall be effective for all or part of the period July first, nineteen hundred seventy- five through June thirtieth, nineteen hundred seventy-six. Any adjustment pursuant to this subparagraph shall automatically expire no later than June thirtieth, nineteen hundred seventy-six. (7) The rental increases provided for herein shall be effective and collectible upon the landlord's filing a report with the agency on forms prescribed by the agency and upon giving such notice to the tenants as the agency shall prescribe subject to adjustments upon order of the agency. (8) In determining the amount of an adjustment allocation of an adjustment pursuant to this subparagraph (o), only living rooms, kitchens over fifty-nine square feet in area, dining rooms and bedrooms shall be considered rooms bathrooms, foyers, and kitchenettes shall not be considered rooms. (2) In any case where any housing accommodation was vacated on or after the effective date of this paragraph two, other than by voluntary surrender of possession or in the manner provided in this chapter, the city rent agency may by regulations having due regard for the equities involved, bar adjustments pursuant to subparagraphs (f) and (g) of paragraph one of this subdivision g except for work which: (a) is necessary in order to remove violations against the property; (b) is necessary to obtain a certificate of occupancy if such certificate is required by law; or (c) could have been performed with a tenant in physical possession of the housing accommodation. (3) Any adjustment pursuant to subparagraph (a), (b), or (c) of paragraph one of this subdivision shall be subject to the limitation set forth in paragraph five of subdivision a of this section; provided: (a) that in ordering an adjustment pursuant to such subparagraph (a), the city rent agency may waive such limitation where a greater increase is necessary to make the earned income of the property equal to its operating expenses; and (b) that where due to such limitation the landlord will not receive the full amount of the rent increase to which he or she would otherwise be entitled, the order of the city rent agency shall increase the maximum rent by a further additional amount during each succeeding twelve-month period, not to exceed seven and a half percentum of the maximum rent in effect on the date of the filing of the application for an adjustment, under the maximum rent shall reflect the full increase to which the landlord is entitled. (4) Any increase in maximum rent shall be apportioned equitably among all the controlled housing accommodations in the property. In making such apportionment and in fixing the increases in maximum rents, the city rent agency shall give due consideration (a) to all previous adjustments or increases in maximum rents by lease or otherwise; and (b) to all other income derived from the property, including income from space and accommodations not controlled, or the rental value thereof if vacant or occupied rent-free, so there is allocated to the controlled housing accommodations therein only that portion of the amount of increases necessary pursuant to subparagraph (a), (b), (c) or (k) of paragraph one of this subdivision g, as is properly attributable to such controlled accommodations. (5) The city rent agency shall compile and make available for public inspection at reasonable hours at its principal office and at each appropriate local office, the manual of accounting procedures and advisory bulletins applicable to applications under subparagraphs (a), (b) and (c) of paragraph one of this subdivision g, and all amendments to such manual and bulletins. (6) (a) No application for an increase in any maximum rent may be filed under subparagraph (a), (b) or (c) of paragraph one of this subdivision g with respect to any property unless there is annexed to such application: (1) A report of search issued by the agency of the city having jurisdiction stating either that no violations against such property are recorded or a receipt (or photocopy thereof) issued by that agency attesting to the payment of the fee for the report of search or that all violations recorded against such property have been cleared, corrected or abated; and (2) A certification by the landlord of such property that he or she is maintaining all essential services required to be furnished and that he or she will continue to maintain such services so long as an such increase in the maximum rent continues in effect. (b) Except as provided in subparagraph (c) of this paragraph six and paragraph four of subdivision h of this section, no landlord shall be entitled to an increase in the maximum rent on any ground unless he or she certifies that he or she is maintaining all essential services furnished or required to be furnished as of the date of the issuance of the order adjusting the maximum rent and that he or she will continue to maintain such services so long as the increase in such maximum rent continues in effect; nor shall any landlord be entitled to any increase in the maximum rent on any ground where an agency of the city having jurisdiction certifies that the housing accommodation is a fire hazard or is a continued dangerous condition or detrimental to life or health or is occupied in violation of law; nor shall any landlord be entitled to any increase where the landlord has not removed the violations recorded against such property as shown in the report of search required under subparagraph (a) of this paragraph six. (c) Where an application for an increase in any maximum rent is filed under subparagraph (f) and/or (g) of paragraph one of this subdivision g, and the landlord is not entitled to any increase by reason of the provisions of subparagraph (b) of this paragraph six, the city rent agency may waive such provisions and issue orders increasing the maximum rent effective as of the date of the issuance of the orders provided, however, that the landlord agrees in writing to deposit the entire amount of such increase in maximum rent into an escrow account administered by the city rent agency in accordance with rules and regulations to be promulgated by such agency for the purpose of obtaining compliance with such provisions and further agrees to obtain and submit to the city rent agency within one year from the date of issuance of such orders; a report of search issued by the agency of the city having jurisdiction stating that the violations shown in the report of search required under subparagraph (a) of this paragraph six have been removed, cleared, corrected or abated, and his or her own certification that he or she is and will continue to maintain all essential services in accordance with the provisions of subparagraph (b) of this paragraph six. In the event the landlord fails to fully comply with such provisions within one year from the date of the issuance of the order increasing the maximum rent, the city agency may, having due regard for the equities involved, revoke such orders and direct full refund to the tenants of the entire increase paid by the tenants as a result of such orders. Any person serving as escrow agent shall not be liable except for fraud or misfeasance. (d) No new maximum rent shall be established pursuant to paragraph three or four of subdivision a of this section unless not more than one hundred fifty days nor less than ninety days prior to the effective date thereof, the landlord has certified that he or she is maintaining all essential services required to be furnished with respect to the housing accommodations covered by such certification, and that he or she will continue to maintain such services so long as such new maximum rent is in effect. Each such certification filed to obtain a new maximum rent pursuant to paragraph four of subdivision a of this section shall be accompanied by a certification by the landlord that he or she has actually expended or incurred ninety per centum of the total amount of the cost index for operation and maintenance established for his or her type of building. (e) The city rent agency shall establish a counseling service to provide assistance to tenants and to landlords of buildings containing nineteen or fewer housing accommodations, by way of instruction in the management, maintenance and upkeep of housing accommodations, their respective responsibilities thereto, the programs and enforcement remedies available in the agency and from other city agencies, and assistance in the preparation of applications and other forms. (7) Before ordering any adjustment in maximum rents, the city rent agency shall accord a reasonable opportunity to be heard thereon to the tenant and the landlord. h. (1) whenever in the judgment of the city rent agency such action is necessary or proper in order to effectuate the purposes of this chapter, such agency may, by regulation or order, regulate or prohibit speculative or manipulative practices or renting or leasing practices, including practices relating to recovery of possession, which in the judgment of such agency are equivalent to or are likely to result in rent increases inconsistent with the purposes of this chapter. (2) Whenever in the judgment of such agency such action is necessary or proper in order to effectuate the purposes of this chapter, such agency may provide regulations to assure the maintenance of the same living space, essential services, furniture, furnishings and equipment as were provided on the date determining the maximum rent, and such agency shall have power by regulation or order to decrease the maximum rent or take action as provided in paragraph four of this subdivision h for any housing accommodation with respect to which a maximum rent is in effect, pursuant to this chapter, if it shall find that the living space, essential services, furniture, furnishings or equipment to which the tenant was entitled on such date have been decreased. (3) Whenever any agency of the city having jurisdiction certifies that any housing accommodation is a fire hazard or is in a continued dangerous condition or detrimental to life or health, or is occupied in violation of law, the city rent agency may issue an order decreasing the maximum rent or take action as provided in paragraph four of this subdivision h for such housing accommodation in such amount as it deems necessary or proper, until the agency issuing such certification has certified that such housing accommodation is no longer a fire or other hazard and is not in a condition detrimental to life and health and is not occupied in violation of law. (4) (a) Whenever in the judgment of the city rent agency such action is necessary or proper in order to effectuate the purposes of this chapter, such agency may, in lieu of decreasing the maximum rents as provided in paragraphs two and three of this subdivision h, enter into a contract wherein the landlord agrees in writing to deposit all income derived from the property, including income from spaces and accommodations not controlled, into an escrow or trust account for use in maintaining or restoring essential services and equipment, for removing violations against the property or housing accommodations therein, making such repairs as are necessary to remove a certification from any city agency having jurisdiction thereof that the housing accommodation is a fire hazard or is in a continued dangerous condition or detrimental to life or health, or is occupied in violation of law, and/or for such other uses as the city rent agency deems necessary or proper for the preservation, repair or maintenance of the property. The city rent agency may adopt such rules and regulations and orders as it may deem necessary or proper to effectuate the purposes of this paragraph, including but not limited to the issuance of orders adjusting all controlled rents to the appropriate maximum rent effective as of the first day of the month following the execution of the contract provided, however, that in the event the city rent agency shall determine that the landlord has breached such contract, such agency may issue orders (1) decreasing the maximum rents pursuant to such contract; (2) containing a directive that rent collected by the landlord in excess of the rent thus decreased be refunded to the tenants; and (3) containing such other determinations and directives as are necessary in order to effectuate the purposes of this paragraph four. (b) Notwithstanding any provision of this chapter to the contrary, whenever in the judgment of the city rent agency action as provided in paragraph two or three of this subdivision h is necessary or proper in order to effectuate the purposes of this chapter, such agency may in lieu of decreasing the maximum rents thereof issue orders adjusting all controlled rents and directing that rents be paid into an escrow account for the uses stated in subparagraph (a) of this paragraph four where: (1) The landlord fails to take corrective action after notice by the city rent agency of proposed action to decrease the maximum rents pursuant to paragraph two or three of this subdivision h, and, (2) The city rent agency has notified all mortgagees who have filed with the city rent agency a declaration of interest in such property and in such proposed action, and, (3) The landlord has failed for three consecutive months to collect any controlled rents or to commence court proceedings for their collection or if such proceedings have been commenced, the landlord has not diligently prosecuted them or such proceedings have not resulted in judgment in favor of such landlord. (c) The city rent agency shall promulgate rules and regulations for the administration of escrow and trust accounts set forth in this paragraph four. Any person serving as escrow agent or trustee shall not be liable except for fraud breach of fiduciary duties or misfeasance. (5) Whenever the essential services, furnishings, furniture or equipment of any individual housing accommodation are reduced, impaired, mutilated, or made unworkable as the result of the neglect, failure to exercise due care, or failure of the tenant to take practicable precautions to prevent such condition, the landlord shall restore such services, furniture, furnishings or equipment and pursuant to regulations to be prescribed by the city rent agency may make application for a temporary increase in the maximum rent based upon the cost of such restoration. In the event of the failure of the tenant to make restitution within a reasonable time, as determined by the city rent agency an order shall be issued adjusting the maximum rent for such tenant in an amount sufficient to recover the cost over twelve monthly installments, or until the tenant surrenders possession, whichever is sooner. The provisions of this paragraph shall be in addition to all other rights and remedies of the landlord. (6) If at least six months before the effective date of any adjustment or establishment of rents pursuant to paragraph three or four of subdivision a of this section, the landlord has not certified to the agency having jurisdiction that (a) all rent impairing violations (as defined by section three hundred two-a of the multiple dwelling law), and (b) at least eighty per centum of all other violations of the housing maintenance code or other state or local laws that impose requirements on property that were recorded against the property one year prior to such effective date have been cleared, corrected, or abated, no increase pursuant to such paragraphs shall take effect until he or she shall have entered into a written agreement with the city rent agency to deposit all income derived from the property into an escrow or trust account pursuant to subparagraph (a) of paragraph four of this subdivision, in addition to the procedures set forth in this paragraph and all other applicable penalties and procedures under this chapter, such violation shall also be subject to repair or removal by the city pursuant to the provisions of article five of subchapter five of the housing maintenance code, the landlord to be liable for the cost thereof. i. Any regulation or order issued pursuant to this section may be established in such form and manner, may contain such classifications and differentiations, and may provide for such adjustments including the establishment of new or adjusted maximum rents in whole dollar amounts, and such reasonable exceptions as in the judgment of the city rent agency are necessary or proper in order to effectuate the purposes of this chapter. j. No increase or decrease in maximum rent shall be effective prior to the date on which the order therefor is issued, except as hereinafter provided. If an application for an increase pursuant to subparagraph (a) of paragraph one of subdivision g of this section submitted on or after August first, nineteen hundred seventy is accompanied by a certified statement of expenditures and no order is issued thereon within four months of the filing of an application based on assessed value or equalized assessed value, or eight months of the filing of an application based on sale price, with all required documentation the increased rent requested shall thereafter be placed in an interest bearing escrow account until a final determination is made upon such application by the city rent agency. Upon initial determination by the agency an order shall be issued providing for the payment of the increased amount, if any, due to the landlord from the date of first deposit of rent in said escrow account with interest, and the excess amount, if any, be paid the tenants entitled thereto, with an appropriate amount of interest. The city rent agency shall promulgate rules and regulations for the administration of such escrow accounts. Any person serving as escrow agent shall not be liable except for fraud or misfeasance. k. Regulations, orders, and requirements under this chapter may contain such provisions as the city rent agency deems necessary to prevent the circumvention or evasion thereof. l. The powers granted in this action shall not be used or made to operate to compel changes in established rental practices, except where such action is affirmatively found by the city rent agency to be necessary to prevent circumvention or evasion of any regulation, order, or requirement under this chapter. m. Findings. The council finds that there is an acute and continuing housing shortage; that this shortage has and continues to have an adverse effect on the population and especially on inhabitants of the city who are sixty-two years of age or older and of limited means, who cannot pay enough rent to induce private enterprise to maintain decent housing at rents they can afford to pay; that this condition is and continues to be particularly acute in a time of rising costs such as the present; that present rising costs and the continuing increase in rents pursuant to amendments to the New York City Rent and Rehabilitation Law may result in such persons being unable to pay their rent, thus making them subject to eviction, that such hardships fall with particular severity upon older persons in the population because of their particular inability to find alternative accommodations within their means, because of the trauma experienced by many older persons who have to relocate and because they may endanger their health by paying additional sums for shelter and thereby deprive themselves of other necessities; that hardships imposed upon such people adversely affect their health and welfare and the general welfare of the inhabitants of the city. The council is aware of the provisions set forth in chapter three hundred seventy- two and chapter one thousand twelve of the laws of nineteen hundred seventy-one. It is our considered opinion that this legislation extending the rent exemption to cover the resultant rent increases due to the maximum rents established January first, nineteen hundred seventy-two, is not more stringent or restrictive than those presently in effect. It is, therefore, found and declared to be necessary for the health, welfare and safety of such persons and of inhabitants of the city that the city continue a system of special rent adjustments for such persons as hereinafter provided. (1) No increase in maximum rent pursuant to paragraph two or paragraph three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (1) or (n) of paragraph one of subdivision g of this section, shall be collectible from a tenant to whom there has been issued a currently valid rent exemption order pursuant to this subdivision, except as provided in such order. (2) A tenant is eligible for a rent exemption order pursuant to this subdivision if: (i) the head of the household residing in the housing accommodation is sixty-two years of age or older and is entitled to the possession or to the use or occupancy of a dwelling unit. Nothing herein contained shall render ineligible for benefits persons receiving supplemental security income or additional state payments, or both, under a program administered by the United States department of health and human services or by such department and the New York state department of social services. (ii) The aggregate disposable income (as defined by regulation of the department of housing preservation and development) of all members of the household residing in the housing accommodation does not exceed fifteen thousand dollars per year, after deduction of federal, state and city income and social security taxes. For purposes of this subdivision, "aggregate disposable income" shall not include increases in benefits accorded pursuant to the social security act which take effect after the date of eligibility of a head of the household receiving benefits under this subdivision whether received by the head of the household or any other member of the household; and (iii) (a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodations exceeds one-third of the aggregate disposable income or if any expected increase in the maximum rent pursuant to paragraph two, three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (1) or (n) of paragraph one of subdivision g of this section would cause such maximum rent to exceed one-third of the aggregate disposable income; or (b) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodations exceeds the maximum allowance for shelter which the head of the household is entitled to receive pursuant to the social services law or if any expected increase in the maximum rent pursuant to paragraph two, three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (1) or (n) of paragraph one of subdivision g of this section would cause such maximum rent to exceed the maximum allowance for shelter which the head of the household is entitled to receive. (3) (a) A rent exemption order pursuant to this subdivision shall provide: (i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social law services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of one-third of the aggregate disposable income, or the maximum collectible rent in effect on December thirty-first of the year preceding the effective date of the order, whichever is greater; or (ii) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of either the maximum allowance for shelter which the head of the household is entitled to receive, or the maximum collectible rent in effect on December thirty-first of the year preceding the effective date of the order, whichever is greater; except, (iii) that the landlord may collect from the tenants described in items (i) and (ii) of this subparagraph increases in rent pursuant to subparagraphs (d), (e), and (i) of paragraph one of subdivision g of this section. (b) Each such order shall expire upon termination of occupancy of the housing accommodation by the tenant to whom it is issued. The landlord shall notify the department of housing preservation and development, on a form to be prescribed by such department, within thirty days of each such termination of occupancy. (4) Any landlord who collects, or seeks to collect or enforce, rent from a tenant in violation of the terms of a rent exemption order shall, for the purposes of all remedies, sanctions and penalties provided in this chapter, be deemed to have collected or attempted to collect or enforce, a rent in excess of the legal maximum rent. (5) A rent exemption order shall be issued to each tenant who applies to the New York City department of housing preservation and development in accordance with its regulations and who is found to be eligible under this subdivision. Such order shall take effect on the first day of the first month after receipt of such application, except that where the aggregate disposable income of all members of the household residing in the housing accommodation is greater than five thousand dollars per year but does not exceed fifteen thousand dollars per year pursuant to subparagraph (ii) of paragraph two of this subdivision m of this section on orders issued on applications received before July first, nineteen hundred seventy-five, the effective date of such order shall be the later of (1) June thirty, nineteen hundred seventy-four or (2) the last day of the month in which a person becomes an eligible head of household in the housing accommodation in which such person resides at the time of filing the most recent application for a rent exemption order; and further, except that where any other application has been received within ninety days of the issuance of the order increasing the tenant's maximum rent pursuant to paragraph three, four or six of subdivision (a) of this section, or subparagraph (a), (b), (c), or (1) of paragraph (1) of subdivision (g) of this section or pursuant to court order, whichever is later, the rent exemption order shall without further order take effect as of the effective date of said order increasing the tenant's rent including any retroactive increments collectible pursuant to such orders. (6) A rent exemption order shall be valid for a period of two years and may be renewed for further two year periods upon application by the tenant provided, that upon any such renewal application being made by the tenant any rent exemption order then in effect with respect to such tenant shall be deemed renewed until such time as the department of housing preservation and development shall have found such tenant to be either eligible or ineligible for a rent exemption order but in no event for more than six additional months. If such tenant is found eligible, the order shall be deemed to have taken effect upon expiration of the exemption. In the event that any such tenant shall subsequent to any such automatic renewal, not be granted a rent exemption order, such tenant shall be liable to his or her landlord for the difference between the amounts he or she has paid under the provisions of the automatically renewed order and the amounts which he or she would have been required to pay in the absence of such order. Any rent exemption order issued pursuant to this subdivision shall include provisions giving notice as to the contents of this paragraph relating to automatic renewals of rent exemption orders. Any application or renewal application for a rent exemption order shall also constitute an application for a tax abatement under such section. The department of housing preservation and development may, with respect to renewal applications by tenants whom it has found eligible for rent exemption orders, prescribe a simplified form including a certification of the applicant's continued eligibility in lieu of a detailed statement of income and other qualifications. (7) Notwithstanding the provisions of this chapter, a tenant who resides in a housing accommodation which becomes subject to this chapter upon the sale by the city of New York of the building in which such housing accommodation is situated may be issued a rent increase exemption order for increases in rent which occurred during ownership of such building by the city of New York provided that such tenant would have been otherwise eligible to receive a rent increase exemption order at the time of such increase but for the fact that such tenant occupied a housing accommodation owned by the city of new York and was therefore not subject to this chapter. Application for such rent increase exemption orders shall be made within one year from the date such building IS sold by the city of New York or within one year of the effective date of this provision, whichever is later. (8) Notwithstanding the provisions of this chapter or chapter four of this title when a dwelling unit is subject to regulation under this chapter or chapter four of this title is reclassified by a city rent agency order subject to the other chapter the tenant, who holds a senior citizen rent increase exemption order at the time of the reclassification or is otherwise eligible and entitled to an exemption order from one or more rent increases but for the reclassification of the dwelling unit, may be issued a rent increase exemption order under the chapter to which the unit is thereafter subject by virtue of the reclassification continuing the previous exemption notwithstanding the reclassification of the dwelling unit or, where no previous rent increase exemption order has been granted, issuing an initial order exempting the tenant from paying the rent increase to the extent for which he or she would have been eligible and entitled to be exempted at the time of the increase and reclassification but for the fact of reclassification of the dwelling unit including exemption from the rent increase granted pursuant to subparagraph (m) of paragraph one of subdivision g of this section to the extent that it is not predicated upon any improvement or addition in a category as provided for in subparagraph (d), (e), (f), (g), (h) or (i) of paragraph one of subdivision g of this section. Application for such rent increase exemption order shall be made within ninety days from the date of reclassification or within ninety days of the effective date of this paragraph, whichever is later. The rent increase exemption order shall take effect as of the effective date of reclassification including any retroactive increments pursuant to such rent increase. (9) Notwithstanding any other provision of law to the contrary, where a head of household holds a current, valid rent exemption order and, after the effective date of this paragraph, there is a permanent decrease in aggregate disposable income in an amount which exceeds twenty percent of such aggregate disposable income as represented in such head of the household's last approved application for a rent exemption order or for renewal thereof, such head of the household may, upon renewal or one year after the issuance or renewal of such rent exemption order, apply for a redetermination of the amount set forth therein. Upon application, such amount shall be redetermined so as to re-establish the ratio of adjusted rent to aggregate disposable income which existed at the time of the approval of such eligible head of the household's last application for a rent exemption order or for renewal thereof; provided, however, that in no event shall the amount of the adjusted rent be redetermined to be (i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, less than one-third of the aggregate disposable income; or (ii) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, less than the maximum allowance for shelter which such head of the household is entitled to receive pursuant to such law. For purposes of this paragraph, a decrease in aggregate disposable income shall not include any decrease in such income resulting from the manner in which such income is calculated pursuant to any amendment to paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law or any amendment to the regulations of the department of housing preservation and development made on or after April first, nineteen hundred eighty-seven. For purposes of this paragraph, "adjusted rent" shall mean maximum rent less the amount set forth in a rent exemption order. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986; amended by Local L. 1985, No. 63, eff. Oct. 1, 1985, amended by Local L. 1985, No. 98, eff. Dec. 31, 1985; amended by Local L. 1986, No. 52; amended by Laws 1986, Ch. 737, 2, eff. Sept. 1, 1986; amended by Laws 1987, Ch. 584, 7, eff. Aug. 3, 1987; amended by Laws 1988, Ch. 366, 2, eff. July 29 1988, amended by Laws 1988, Ch. 651, 3, 4, eff. Sept. 1, 1988; amended by Local L. 1988, No. 67, 2, 3, eff. Nov. 4, 1988; amended by Laws 1990, Ch. 749, 1, 2, eff. July 22, 1990. ***************************************************** 26-406. Tax abatement for properties subject to rent exemption orders. a. Tax abatement, pursuant to the provisions of section four hundred sixty-seven-b of the real property tax law, shall be granted with respect to any real property for which a rent exemption order is issued under subdivision n of section 26- 405 of this chapter to the tenant of any housing accommodation contained therein. The rent exemption order shall also constitute the tax abatement certificate. b. The real estate tax imposed upon any real property for which a rent exemption order is issued, shall be reduced and abated by an amount equal to the difference between ( I ) the sum of the maximum rents collectible under such orders, and (2) the sum of rents that would be collectible from the tenants of such housing accommodations if no exemption had been granted pursuant to subdivision n of section 26-405 of this chapter. c. For any individual housing accommodation, the tax abatement computed pursuant to subdivision b of this section shall be available with respect to a period commencing on the effective date of the initial rent exemption order or January first, nineteen hundred seventy-two, whichever is later, and ending on the expiration date of such order or on the effective date of an order terminating the rent exemption. Notwithstanding any other provision of law, when a head of a household to whom a then current, valid tax abatement certificate has been issued under this chapter, chapter four or chapter seven of this title moves his or her principal residence to a subsequent dwelling unit subject to regulation under this chapter, the head of the household may apply to the department of housing preservation and development for a tax abatement certificate relating to the subsequent dwelling unit, and such certificate may provide that the head of the household shall be exempt from paying that portion of the maximum rent for the subsequent dwelling unit which is the least of the following: (1) the amount by which the rent for the subsequent dwelling unit exceeds the last rent, as reduced, which the head of the household was required to actually pay in the original dwelling unit; (2) the last amount deducted from the maximum rent or legal regulated rent meaning the most recent monthly deduction for the applicant in the original dwelling unit pursuant to this section, section 26-509 or section 26-605 of this title; or (3) where the head of the household does not receive a monthly allowance for shelter pursuant to the social services law, the amount by which the maximum rent or legal regulated rent of the subsequent dwelling unit exceeds one-third of the combined income of all members of the household. Such certificate shall be effective as of the first day of the month in which the tenant applied for such exemption or as of the date the tenant took occupancy of the subsequent dwelling unit, whichever is later, provided both occur after the effective date of this law. d. Prior to the commencement of each fiscal year, the department of housing preservation and development shall notify the department of finance of the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders were in effect for all or any part of the preceding calendar year. The commissioner of finance shall make the appropriate adjustment in the real estate tax payable in such fiscal year. e. Tax abatement pursuant to this section shall be in addition to any other tax abatement authorized by law, but shall not reduce the tax for any fiscal year below zero. In the event that the tax abatement certificate authorizes an amount of deduction in excess of the real estate installment, then the balance may be applied to any subsequent installment until exhausted. In such a case the owner shall submit with his or her real estate tax bill and remittance, a verified statement in such form as prescribed by the commissioner of finance setting forth the carry over amount and the amounts previously applied; provided, however, that at the request of the owner such balance shall be paid to the owner by the commissioner of finance in lieu of being applied to any subsequent installment, except where the owner is in arrears in the payment of real estate taxes on any property. For the purposes of this subdivision, where the owner is a corporation, it shall be deemed to be in arrears when any of the officers, directors or any person holding an interest in more than ten percent of the issued and outstanding stock of such corporation is in arrears in the payment of real estate taxes on any property; where title is held by a nominee, the owner shall be deemed to be in arrears when the person for whose benefit such title is held is in arrears in the payment of real estate taxes on any property. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986; amended by Local L. 1985, No. 98, eff. Dec. 31, 1985. ***************************************************** 26-407. Labor cost pass-along. a. Notwithstanding any provisions of this chapter, any labor cost pass-along rent increase requested of, or received from, any tenant on or after July first, nineteen hundred seventy-two, pursuant to the provisions of subparagraph (1) of paragraph one of subdivision g of section 26-405 of this title, shall not exceed the maximum rent adjustment as provided under this chapter after the effective date of this section. b. All such increases in excess of such maximum rent are hereby declared null and void and of no effect. A tenant who paid any such excess increase shall be repaid by a cash refund or credit, to be applied against future rent, in equal installments for the same number of months for which such increase was actually collected, commencing on January first, nineteen hundred seventy-eight. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-408. Evictions. a. No tenant, so long as he or she continues to pay the rent to which the landlord is entitled, shall be removed from any housing accommodation which is subject to rent control under this chapter by action to evict or to recover possession, by exclusion from possession, or otherwise, nor shall any person attempt such removal or exclusion from possession notwithstanding the fact that the tenant has no lease or that his or her lease, or other rental agreement, has expired or otherwise terminated, notwithstanding any contract, lease agreement, or obligation heretofore or hereafter entered into which provides for surrender of possession, or which otherwise provides contrary hereto, except on one or more of the following grounds, or unless the landlord has obtained a certificate of eviction pursuant to subdivision b of this section: (1) The tenant is violating a substantial obligation of his or her tenancy other than the obligation to surrender possession of such housing accommodation and has failed to cure such violation after written notice by the landlord that the violation cease within ten days, or within the three month period immediately prior to the commencement of the proceeding the tenant has wilfully violated such an obligation inflicting serious and substantial injury to the landlord; or (2) The tenant is committing or permitting a nuisance in such housing accommodation; or is maliciously or by reason of gross negligence substantially damaging the housing accommodation; or his or her conduct is such as to interfere substantially with the comfort and safety of the landlord or of other tenants or occupants of the same or other adjacent building or structure; or (3) Occupancy of the housing accommodation by the tenant is illegal because of the requirements of law, and the landlord is subject to civil or criminal penalties therefor, or both, provided, however, that such occupancy shall not be considered illegal by reason of violations placed against the housing accommodations or the building in which same are located by any department or agency of the city having jurisdiction unless such department or agency has issued an order requiring the tenants to vacate said accommodation or building or unless such occupancy for such building or such violations relied on by the landlord result from an act, omission or situation caused or created by the tenant; or (4) The tenant is using or permitting such housing accommodation to be used for an immoral or illegal purpose; or (5) The tenant who had a written lease or other written rental agreement which terminated or shall terminate on or after may first, nineteen hundred fifty, has refused upon demand of the landlord to execute a written extension or renewal thereof for a further term of like duration not in excess of one year but otherwise on the same terms and conditions as the previous lease except in so far as such terms and conditions are inconsistent with this chapter; or (6) The tenant has unreasonably refused the landlord access to the housing accommodation for the purpose of making necessary repair or improvements required by law or for the purpose of inspection or of showing the accommodation to a prospective purchaser, mortgagee or prospective mortgagee, or other person having a legitimate interest therein; provided, however, that in the latter event such refusal shall not be ground for removal or eviction if such inspection or showing of the accommodation is contrary to the provisions of the tenant's lease or other rental agreement. (7) The eviction is sought by the owner of a dwelling unit or the shares allocated thereto where such dwelling unit is located in a structure owned as a cooperative or as a condominium and an offering prospectus for the conversion of such structure pursuant to an eviction plan shall have been submitted to the attorney general pursuant to section three hundred fifty-two-eeee of the general business law and accepted for filing by the attorney general, and been declared effective in accordance with such law, and any right of continued occupancy granted by such law to a non-purchasing tenant in occupancy of such dwelling unit shall have expired; provided that the owner of the dwelling unit or the shares allocated thereto seeks in good faith to recover possession of a dwelling unit for his or her own personal use and occupancy or for the use and occupancy of his or her immediate family. b. No tenant shall be removed or evicted on grounds other than those stated in subdivision a of this section unless on application of the landlord the city rent agency shall issue an order granting a certificate of eviction in accordance with its rules and regulations designed to effectuate the purposes of this title, permitting the landlord to pursue his or her remedies at law. The city rent agency shall issue such an order whenever it finds that: (1) The landlord seeks in good faith to recover possession of a housing accommodation because of immediate and compelling necessity for his or her own personal use and occupancy or for the use and occupancy of his or her immediate family provided, however, that this subdivision shall not apply where a member of the household lawfully occupying the housing accommodation is sixty-two years of age or older, has been a tenant in a housing accommodation in that building for twenty years or more, or has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques, and which are expected to be permanent and which prevent the tenant from engaging in any substantial gainful employment; or (2) The landlord seeks in good faith to recover possession of a housing accommodation for which the tenant's lease or other rental agreement has expired or otherwise terminated, and at the time of termination the occupants of the housing accommodation are subtenants or other persons who occupied under a rental agreement with the tenant, and no part of the accommodation is used by the tenant as his or her dwelling; or (3) The landlord seeks in good faith to recover possession of a housing accommodation for the immediate purpose of substantially altering or remodeling it, provided that the landlord shall have secured such approval therefor as is required by law and the city rent agency determines that the issuance of the order granting the certificate of eviction is not inconsistent with the purpose of this chapter; or (4) The landlord seeks in good faith to recover possession of housing accommodations for the immediate purpose of demolishing them, and the city rent agency determines that such demolition is to be effected for the purpose of constructing a new building, provided that: (a) If the purpose of such demolition is to construct a new building containing housing accommodations, no certificate of eviction shall be granted under this paragraph unless such agency determines that such new building will contain at least twenty per centum more housing accommodations consisting of self-contained family units (as defined by regulations issued by such agency, with due regard for the shortage of housing accommodations suitable for family occupancy and for the purposes of this chapter in relation thereto) than are contained in the structure to be demolished; except, however, that where as a result of conditions detrimental to life or health of the tenants, violations have been placed upon the structure containing the housing accommodations by any agency of the city having jurisdiction over such matters and the cost of removing such violations would be substantially equal to or would exceed the assessed valuation of the structure, the new building shall only be required to make provision for a greater number of housing accommodations consisting of self-contained family units (as so defined by regulation) than are contained in the structure to be demolished; and (b) The city rent agency shall, by regulation, as a condition to the granting of certificates of eviction under this paragraph, require the relocation of the tenants in other suitable accommodations, provided that the city rent agency may, by regulation, authorize the granting of such certificates as to any tenants or classes of tenants without such requirement of relocation, where such exemption will not result in hardship to such tenants or classes of tenants and will not be inconsistent with the purposes of this chapter; and (c) The city rent agency may, by regulation, in order to carry out the purposes of this chapter, impose additional conditions to the granting of certificates of eviction under this paragraph, including, but not limited to, the payment of stipends to the tenants by the landlord in such amounts and subject to such variations and classifications as such agency may determine to be reasonably necessary; and (d) No certificate of eviction shall be issued pursuant to this paragraph unless the landlord shall have secured such approval as is required by law for the construction sought to be effected, and the city rent agency determines that the issuance of such certificate is not inconsistent with the purpose of this chapter. (5) Notwithstanding any provisions to the contrary contained in this subdivision or in subdivision d of section 26-410 of this chapter or in the local emergency housing rent control act: (a) no application for a certificate of eviction under paragraph three or four of this subdivision and no application for a certificate of eviction under paragraph one of subdivision j or under subdivision c of this section for the purpose of withdrawing a housing accommodation from the housing market on the grounds that the continued operation of such housing accommodation would impose undue hardship upon the landlord, pending or made on or after the effective date hereof shall be granted by the city rent agency unless the city rent agency finds that there is no reasonable possibility that the landlord can make a net annual return of eight and one-half per centum of the assessed value of the subject property without recourse to the remedy provided in said paragraph three or four or said subdivision c or j and finds that neither the landlord nor his or her immediate predecessor in interest has intentionally or willfully managed the property to impair the landlord's ability to earn such return; and (b) the effectiveness of any certificate of eviction or of any order granting a certificate of eviction pursuant to paragraphs three and four of this subdivision shall be suspended, and no tenant may be evicted pursuant to any such certificate or order, unless the city rent agency: (i) finds that there is no reasonable possibility that the landlord can make a net annual return of eight and one-half per centum of the assessed value of the subject property without recourse to the remedy provided in said paragraphs three and four and finds that neither the landlord nor his or her immediate predecessor in interest has intentionally or willfully managed the property to impair the landlord's ability to earn such return; and (ii) issues an order reinstating the effectiveness of any certificate of eviction suspended pursuant to this paragraph. The pendency of any judicial proceeding or appeal shall in no way prevent the taking effect of the relief granted in this subparagraph. (c) the provisions of this paragraph shall not apply to an application for a certificate of eviction from a housing accommodation when the landlord seeks in good faith to recover possession thereof for the immediate purpose of substantially altering or remodelling it or for the immediate purpose of demolishing it for the purpose of constructing a new building when such altering or remodelling or the construction of such new building is to be aided by interest reduction payments under section two hundred thirty-six of the national housing act. c. The city rent agency may from time to time, to effectuate the purposes of this chapter, adopt, promulgate, amend or rescind such rules, regulations or orders as it may deem necessary or proper for the control of evictions. Any such rules, regulations or orders may include, in addition to any other provisions authorized by this subdivision, provisions restricting the filing of applications for, or the issuance of orders granting, certificates of eviction where such agency finds that a course of conduct has been engaged in which is proscribed by subdivision d of section 26-412 of this chapter. The agency shall also require, prior to the filing of plans with the department of buildings for a new building or alteration on the site of controlled housing accommodations and prior to the filing of an application for a permit for the demolition or removal of an existing multiple dwelling which contains controlled housing accommodations, that the applicant certify to and file with the agency such information and give such notice to tenants as it deems necessary to prevent evasion of the law and regulations governing evictions. It may also require that an order granting a certificate of eviction be obtained from it prior to the institution of any action or proceeding for the recovery of possession of any housing accommodation subject to rent control under this chapter upon the grounds specified in subdivision b of this section or where it finds that the requested removal or eviction is not inconsistent with the purposes of this chapter and would not be likely to result in circumvention or evasion thereof; provided, however, that no such order shall be required in any action or proceeding brought pursuant to the provisions of subdivision a of this section. d. (1) The city rent agency, on its own initiative or on application of a tenant, may revoke or cancel an order granting a certificate of eviction at any time prior to the execution of a warrant in a summary proceeding to recover possession of real property by a court whenever it finds that: (a) The certificate of eviction was obtained by fraud or illegality; or (b) The landlord's intentions or circumstances have so changed that the premises, possession of which is sought, will not be used for the purpose specified in the certificate. (2) The commencement of a proceeding by the city rent agency to revoke or cancel an order granting a certificate of eviction shall stay such order until the final determination of the proceeding regardless of whether the waiting period in the order has already expired. In the event the city rent agency cancels or revokes such an order, the court having jurisdiction of any summary proceeding instituted in such case shall take appropriate action to dismiss the application for removal of the tenant from the real property and to vacate and annul any final order or warrant granted or issued by the court in the matter. e. Notwithstanding the preceding provisions of this section, the state, the city, or the New York city housing authority may recover possession of any housing accommodations operated by it where such action or proceeding is authorized by statute or regulations under which such accommodations are administered. f. Any order of the city rent agency under this section granting a certificate of eviction shall be subject to judicial review only in the manner prescribed by subdivision eight of section one of the state enabling act and sections 26-410 and 26-411 of this chapter. g. (1) Where after the city rent agency has granted a certificate of eviction authorizing the landlord to pursue his or her remedies pursuant to law to acquire possession and a tenant voluntarily removes from a housing accommodation or has been removed therefrom by action or proceeding to evict from or recover possession of a housing accommodation upon the ground that the landlord seeks in good faith to recover possession of such accommodation: (a) For his or her immediate and personal use, or for the immediate and personal use by a member or members of his or her immediate family, and such landlord or members of his or her immediate family shall fail to occupy such accommodation within thirty days after the tenant vacates, or such landlord shall lease or rent such space or permit occupancy thereof by a third person within a period of one year after such removal of the tenant; or (b) For the immediate purpose of withdrawing such housing accommodation from the rental market and such landlord shall lease or sell the housing accommodation or the space previously occupied thereby, or permit use thereof in a manner other than contemplated in such eviction certificate within a period of one year after such removal of the tenant; or (c) For the immediate purpose of altering or remodeling such housing accommodation, and the landlord shall fail to start the work of alteration or remodeling of such housing accommodation within ninety days after the removal, on the ground that he or she required possession for the purpose of effecting such alteration or remodeling, of the last tenant whose removal is necessary to enable the landlord to effect such alteration or remodeling of such accommodation, or if after having commenced such work shall fail or neglect to prosecute the work with reasonable diligence; or (d) For the immediate purpose of demolishing such housing accommodations and constructing a new building in accordance with approved plans, or reasonable amendment thereof, and the landlord has failed to complete the demolition within six months after the removal of the last tenant or, having demolished the premises, has failed or neglected to proceed with the new construction within ninety days after the completion of such demolition, or having commenced such construction work has failed or neglected to prosecute such work with reasonable diligence; or (e) For some purpose other than those specified above for which the removal of the tenant was sought and the landlord has failed to use the vacated premises for such purpose; such landlord shall, unless for good cause shown, be liable to the tenant for three times the damages sustained on account of such removal plus reasonable attorney's fees and costs as determined by the court. In addition to any other damage, the cost of removal of property shall be a lawful measure of damage. The remedy herein provided for shall be in addition to those provided for in subdivision h of this section, paragraph (a) of subdivision ten of section one of the state enabling act and subdivision a of section 26-413 of this chapter. (2) The acts and omissions mentioned in subparagraphs (a), (b), (c), (d) and (e) of paragraph one of this subdivision, on the part of a landlord after issuance of a certificate of eviction, are hereby declared to be inconsistent with the purposes for which such certificate of eviction was issued. h. Where after the city rent agency has granted a certificate of eviction authorizing the landlord to pursue his or her remedies pursuant to law to acquire possession for any purpose stated in subdivision b or j of this section or for some other stated purpose, and a tenant voluntarily removes from a housing accommodation or has been removed therefrom by action or proceeding to evict from or recover possession of a housing accommodation and the landlord or any successor landlord of the premises does not use the housing accommodation for the purpose specified in such certificate of eviction, the vacated accommodation or any replacement or subdivision thereof shall, unless the city rent agency approves such different purpose, be deemed a housing accommodation subject to control, notwithstanding any definition of that term in this chapter to the contrary. Such approval shall be granted whenever the city rent agency finds that the failure or omission to use the housing accommodation for the purpose specified in such certificate was not inconsistent with the purpose of this chapter and would not be likely to result in the circumvention or evasion thereof. The remedy herein provided for shall be in addition to those provided for in subdivision g of this section, paragraph (a) of subdivision ten of section one of the state enabling act and subdivision a of section 26-413 of this chapter. i. Any statutory tenant who vacates a housing accommodation without giving the landlord at least thirty days' written notice by registered or certified mail of his or her intention to vacate, shall be liable to the landlord for the loss of rent suffered by the landlord, but not exceeding one month's rent, except where the tenant has been removed or vacates pursuant to the provisions of this section. Such notice shall be postmarked on or before the last day of the rental period immediately prior to such thirty-day period. j. (1) Nothing in this chapter shall be construed to require any person to offer any housing accommodations for rent, but housing accommodations already on the rental market may be withdrawn only after prior written approval of the city rent agency, if such withdrawal requires that a tenant be evicted from such accommodations. (2) The city rent agency, in order to carry out the purposes of this chapter, may issue regulations providing for issuance of certificates of eviction in any case where the landlord seeks such approval in order to use the premises (including the building or land) (a) for the purpose of conducting a business, or (b) where the landlord is a hospital, convent, asylum, public institution, college, school or any institution operated exclusively for charitable, religious or educational purposes on a nonprofit basis and the landlord seeks such approval in order to use the premises (including the building or land) or any part thereof in connection with the landlord's charitable, religious or educational purposes; such agency, if it grants approval, shall condition same upon compliance by the landlord with designated requirements which may consist of any conditions that such agency would have authority to prescribe by regulation under subparagraphs (b) and (c) of paragraph four of subdivision b of this section with respect to applications for certificates of eviction under such paragraph four provided, however, that such agency shall not condition any such approval granted to a hospital, convent, asylum, public institution, college, school, or any institution operated exclusively for charitable, religious or educational purposes upon compliance with requirements exceeding or less than those applicable to any private owner in similar circumstances. Nothing contained in this paragraph shall be construed as authorizing or requiring such agency to approve the withdrawal of any housing accommodations from the rental market by any landlord for the purpose of using the premises for any business other than one in existence and conducted by such landlord at the time such withdrawal is sought. No certificate of eviction shall be issued to a nonprofit school, college, hospital, or other charitable institution, including without limitation, any organization exempt from taxation under the Federal Internal Revenue Code, which seeks to recover possession of the housing accommodations or to withdraw such accommodations from the rental or non-rental housing market, for immediate and personal use and occupancy as housing accommodations by its employees, students or members of its staff. k. The city rent agency by order issued pursuant to its regulations may waive the requirements of subdivision b of this section where (1) the housing accommodations were vacant at the time when landlord made application for such waiver, and (2) were vacated by reason of the last tenant's voluntary surrender thereof, and (3) the landlord, in good faith, intends to demolish or substantially rehabilitate the building in which the housing accommodations are located within a period approved by the city rent agency. The failure of the landlord to comply with the conditions established by the city rent agency for the granting of the application shall subject the housing accommodations to all the provisions of this chapter. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-409. Investigation; records; reports. a. The city rent agency is authorized to make such studies and investigations, to conduct such hearings, and to obtain such information as it deems necessary or proper in prescribing any regulation or order pursuant to this chapter or in administering and enforcing this chapter and the regulations and orders thereunder or the state rent act and the regulations and orders thereunder. b. The city rent agency is further authorized, by regulation or order, to require any person who rents or offers for rent or acts as broker or agent for the rental of any housing accommodations to furnish any such information under oath or affirmation, or otherwise, to make and keep records and other documents, and to make reports, including, but not limited to, reports with respect to decontrolled or exempt housing accommodations, and the city rent agency may require any such person to permit the inspection and copying of records and other documents and the inspection of housing accommodations. Any officer or agent designated by the city rent agency for such purposes may administer oaths and affirmations and may, whenever necessary, by subpoena, require any such person to appear and testify or to appear and produce documents, or both, at any designated place. c. For the purpose of obtaining any information under this section, the city rent agency may by subpoena require any other person to appear and testify or to appear and produce documents, or both, at any designated place. d. The production of a person's documents at any place other than his or her place of business shall not be required under this section in any case in which, prior to the return date specified in the subpoena issued with respect thereto, such person either has furnished the city rent agency with a copy of such documents certified by such person under oath to be a true and correct copy, or has entered into a stipulation with the city rent agency as to the information contained in such documents. e. In case of contumacy by, or refusal to obey a subpoena served upon, any person referred to in this section, the supreme court in or for any judicial district in which such person is found or resides or transacts business, upon application by the city rent agency, shall have jurisdiction to issue an order requiring such person to appear and give testimony or to appear and produce documents, or both; and any failure to obey such order of the court may be punished by such court as a contempt thereof. The provisions of this subdivision e shall be in addition to the provisions of paragraph (a) of subdivision nine of section one of the state enabling act and subdivision a of section 26-412 of this chapter. f. Witnesses subpoenaed under this section shall be paid the same fee and mileage as are paid witnesses pursuant to the civil practice law and rules. g. Upon any such investigation or hearing, the city rent agency, or an officer duly designated by the city rent agency to conduct such investigation or hearing, may confer immunity in accordance with the provisions of the criminal procedure law. h. The city rent agency shall not publish or disclose any information obtained under this chapter that the city rent agency deems confidential or with reference to which a request for confidential treatment is made by the person furnishing such information, unless the city rent agency determines that the withholding thereof is contrary to the public interest. i. Any person subpoenaed under this section shall have the right to make a record of his or her testimony and to be represented by counsel. j. Without limiting any power granted by this section or any other provision of law, the city rent agency may by regulation require the owner of a building or property containing both housing accommodations subject to this chapter and housing accommodations subject to chapter four of this title to execute and file registration statements with respect to the housing accommodations subject to this chapter along with those filed pursuant to such chapter four. Notwithstanding any other provisions of law, such agency may promulgate regulations, and take other necessary or appropriate actions, pursuant to this subdivision prior to April first, nineteen hundred eighty-four, to take effect on or after such date. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-410. Procedure. a. After the issuance of any regulation or order by the city rent agency, any person subject to any provision of such regulation or order may, in accordance with regulations to be prescribed by such agency, file a protest against such regulation or order specifically setting forth his or her objections to any such provisions and affidavits or other written evidence in support of such objections. Statements in support of any such regulation or order may be received and incorporated in the record of the proceedings at such times and in accordance with such regulations as may be prescribed by such agency. Within a reasonable time after the filing of any protest under this section, such agency shall either grant or deny such protest in whole or in part, notice such protest for hearing, or provide an opportunity to present further evidence in connection therewith. In the event that such agency denies any such protest in whole or in part, it shall inform the protestant of the grounds upon which such decision is based, and of any economic data and other facts of which it has taken official notice. b. In the administration of this chapter, the city rent agency may take official notice of economic data and other facts, including facts found by it as a result of action taken under section 26-405 of this chapter. c. Any proceedings under this section may be limited by the city rent agency to the filing of affidavits, or other written evidence, and the filing of briefs, except that no multiple-tenant initiated proceeding for the reduction of rents in a building may be determined without a hearing. d. Any protest filed under this section shall be granted or denied by the city rent agency, or granted in part and the remainder of it denied, within a reasonable time after it is filed. If such agency does not act finally within a period of ninety days after the protest is filed, the protest shall be deemed to be denied. However, such agency may grant one extension not to exceed thirty days with the consent of the party filing such protest; any further extension may only be granted with the consent of all parties to the protest. No proceeding may be brought pursuant to article seventy-eight of the civil practice law and rules to challenge any order or determination which is subject to such protest unless such review has been sought and either (1) a determination thereon has been made or (2) the ninety-day period provided for determination of the protest (or any extension thereof) has expired. If such agency does not act finally within a period of ninety days after the entry of an order of remand to such agency by the court in a proceeding instituted pursuant to subdivision eight of section one of the state enabling act or section 26-411 of this chapter, the order previously made by such agency shall be deemed reaffirmed. However, such agency may grant one extension not to exceed thirty days with the consent of the petitioner; any further extension may only be granted with the consent of all parties to the petition. e. The city rent agency shall compile and make available for public inspection at reasonable hours at its principal office and at each appropriate local office a copy of each decision rendered by it upon granting, or denying, in whole or in part, any protests filed under this section and shall have available at each appropriate local office a register of properties concerning which a vacate order was issued by a city department having jurisdiction or proceedings have been brought to determine whether any housing accommodations therein became vacant as a result of conduct proscribed by subdivision d of section 26-412 of this chapter. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-411. Judicial review. a. (1) Any person who is aggrieved by the final determination of the city rent agency in an administrative proceeding protesting a regulation or order of such agency may, in accordance with article seventy-eight of the civil practice law and rules, within sixty days after such determination, commence a proceeding in the supreme count The petition shall specify his or her objections and pray that the regulation or order protested be enjoined or set aside in whole or in pan. Such proceeding may at the option of the petitioner be instituted in the county where the city rent agency has its principal office or where the property is located. The city rent agency shall file with such court the original or a transcript of such portions of the proceedings in connection with its final determination as are material under the petition. Such return shall include a statement setting forth, so far as practicable, the economic data and other facts of which the city rent agency has taken official notice. Upon the filing of such petition the court shall have jurisdiction to set aside the regulation or order protested, in whole or in pan, to dismiss the petition, or to remit the proceeding to the city rent agency, provided, however, that the regulation or order may be modified or rescinded by the city rent agency at any time notwithstanding the pendency of such proceeding for review. (2) No objection to such regulation or order, and no evidence in support of any objection thereto, shall be considered by the court, unless such objection shall have been presented to the city rent agency by the petitioner in the proceedings resulting in the determination or unless such evidence shall be contained in the return. If application is made to the court by either party for leave to introduce additional evidence which was either offered and not admitted or which could not reasonably have been offered or included in such proceedings before the city rent agency, and the court determines that such evidence should be admitted, the court shall order the evidence to be presented to the city rent agency. The city rent agency shall promptly receive the same, and such other evidence as the city rent agency deems necessary or proper, and thereupon the city rent agency shall file with the court the original or a transcript thereof and any modification made in such regulation or order as a result thereof; except that on request by the city rent agency, any such evidence shall be presented directly to the court. Upon final determination of the proceeding before the court, the original record, if filed by the city rent agency with the court, shall be returned to the city rent agency. b. No regulation or order of the city rent agency shall be enjoined or set aside in whole or in part, unless the petitioner shall establish to the satisfaction of the court that the regulation or order is not in accordance with law, or is arbitrary or capricious. The effectiveness of an order of the court enjoining or setting aside, in whole or in part, any such regulation or order shall be postponed until the expiration of thirty days from the entry thereof. The jurisdiction of the supreme court shall be exclusive and its order dismissing the petition or enjoining or setting aside such regulation or order, in whole or in part, shall be final, subject to review by the appellate division of the supreme court and the court of appeals in the same manner and form and with the same effect as provided in the civil practice law and rules for appeals from a final order in a special proceeding. Notwithstanding any provision of paragraph one of subdivision (b) of section five thousand seven hundred one of the civil practice law and rules to the contrary, any order of the court remitting the proceeding to the city rent agency may, at the election of the city rent agency, be subject to review by the appellate division of the supreme court and the court of appeals in the same manner and form and with the same effect as provided in the civil practice law and rules for appeals from a final order in a special proceeding. All such proceedings shall be heard and determined by the court and by any appellate court as expeditiously as possible and with lawful precedence over other matters. All such proceedings for review shall be heard on the petition, manuscript and other papers, and on appeal shall be heard on the record, without requirement of printing. c. Within thirty days after arraignment, or such additional time as the court may allow for good cause shown, in any criminal proceeding, and within five days after judgment in any civil or criminal proceeding, brought pursuant to subdivision ten of section one of the state enabling act or section 26-413 of this chapter involving alleged violation of any provision of any regulation or order of the city rent agency, the defendant may apply to the court in which the proceeding is pending for leave to file in the supreme court a petition setting forth objections to the validity of any provision which the defendant is alleged to have violated or conspired to violate. The court in which the proceeding is pending shall grant such leave with respect to any objection which it finds is made in good faith and with respect to which it finds there is reasonable and substantial excuse for the defendant's failure to present such objection in an administrative proceeding before the city rent agency. Upon the filing of a petition pursuant to and within thirty days from the granting of such leave, the supreme court shall have jurisdiction to enjoin or set aside in whole or in part the provision of the regulation or order complained of or to dismiss the petition. The court may authorize the introduction of evidence, either to the city rent agency or directly to the court, in accordance with subdivision a of this section The provisions of subdivision b of this section shall be applicable with respect to any proceedings instituted in accordance with this subdivision. d. In any proceeding brought pursuant to subdivision ten of section one of the state enabling act or section 26-413 of this chapter involving an alleged violation of any provision of any such regulation or order, the court shall stay the proceeding: (1) During the period within which a petition may be filed in the supreme court pursuant to leave granted under subdivision c of this section with respect to such provision; (2) During the pendency of any protest properly filed under section 26-410 of this chapter prior to the institution of the proceeding under subdivision ten of section one of the state enabling act or section 26-413 of this chapter, setting forth objections to the validity of such provision which the court finds to have been made in good faith; and (3) During the pendency of any judicial proceeding instituted by the defendant under this section with respect to such protest or instituted by the defendant under subdivision c of this section with respect to such provision, and until the expiration of the time allowed in this section for the taking of further proceedings with respect thereto. e. Notwithstanding the provisions of subdivision d of this section, stays shall be granted thereunder in civil proceedings only after judgment and upon application made within five days after judgment. Notwithstanding the provisions of subdivision d of this section, in the case of a proceeding under paragraph (a) of subdivision ten of section one of the state enabling act or subdivision a of section 26-413 of this chapter, the court granting a stay under subdivision d of this section shall issue a temporary injunction or restraining order enjoining or restraining, during the period of the stay, violations by the defendant of any provision of the regulation or order involved in the proceeding. If any provision of a regulation or order is determined to be invalid by judgment of the supreme court which has become effective in accordance with subdivision b of this section, any proceeding pending in any court shall be dismissed, and any judgment in such proceeding vacated, to the extent that such proceeding or judgment is based upon violation of such provision. Except as provided in subdivisions c and d of this section and as heretofore provided in this subdivision e, the pendency of any protest under section 26-410 of this chapter before the city rent agency or judicial proceeding under this section, shall not be grounds for staying any proceeding brought pursuant to subdivision ten of section one of the state enabling act or section 26-413 of this chapter; nor, except as provided in this subdivision e, shall any retroactive effect be given to any judgment setting aside a provision of a regulation or order. f. The method prescribed herein for the judicial review of a regulation or order of the city rent agency shall be exclusive. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-412. Prohibitions. a. It shall be unlawful, regardless of any contract, lease or other obligation heretofore or hereafter entered into, for any person to demand or receive any rent for any housing accommodations in excess of the applicable maximum rent established therefor by the city rent agency or otherwise to do or omit to do any act, in violation of any regulation, order or requirement of the city rent agency under the state enabling act or under this chapter, or to offer, solicit attempt or agree to do any of the foregoing. b. It shall be unlawful for any person to remove or attempt to remove from any housing accommodations the tenant or occupant thereof or to refuse to renew the lease or agreement for the use of said accommodations, because such tenant or occupant has taken, or proposes to take, action authorized or required by the state rent act or by this chapter or any provision of this code, the multiple dwelling law, or the health code of the city of New York, or any regulation, order or requirement thereunder. c. It shall be unlawful for any officer or employee of the city rent agency or for any official adviser or consultant to the city rent agency to disclose, otherwise than in the course of official duty, any information obtained under this chapter or to use any such information for personal benefit. d. It shall be unlawful for any person, with intent to cause any tenant to vacate housing accommodations or to surrender or waive any rights of such tenant under this chapter or the regulations promulgated thereunder, to engage in any course of conduct including but not limited to, interruption or discontinuance of essential services which interferes with or disturbs or is intended to interfere with or disturb the comfort, repose, peace or quiet of such tenant in his or her use or occupancy of the housing accommodations. e. It shall be unlawful for any person to make any statement or entry false in any material respect in any document or report submitted in any proceeding before the city rent agency or required to be kept filed under this chapter or any regulation, order or requirement thereunder, or to wilfully omit or neglect to make any material statement or entry required to be made in any such document or report; f. It shall be unlawful for a landlord or a successor in interest to use housing accommodations or the site on which same were located for any purposes other than that specified in the certificate of eviction. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-413. Enforcement and penalties. a. Any person who wilfully violates any provision of section 26- 412 of this chapter shall be guilty of and punishable for a crime as specified in subdivision ten of section one of the state enabling act, namely such persons shall be subject to a fine of not more than five thousand dollars, or to imprisonment for not more than two years in the case of a violation of subdivision c of section 26-412 of this chapter and for not more than one year in all other cases, or to both such fine and Imprisonment. The city rent agency may certify such facts, which in its opinion constitute such violation, to the district attorney having jurisdiction thereof. b. (1) The city rent agency may, whenever in its judgment any person has engaged in or is about to engage in acts or practices which constitute a violation of any provision of section 26-412 of this chapter, apply to the supreme court for an order (a) enjoining such acts or practices, (b) enforcing compliance with such provision of said section or with an order issued by the city rent agency, or (c) directing the landlord to correct such violation of such provision; and upon sufficient showing, the supreme court may issue a temporary or permanent injunction, restraining order or other order, all of which shall be granted without bond. Jurisdiction shall not be deemed lacking in the supreme court because a defense is based upon an order of an inferior court. (2) The city rent agency may, whenever in its judgment any person has engaged in acts or practices which constitute a violation of any provision of section 26412 of this chapter: (a) Impose by administrative order after hearing, a civil penalty for any violation of said section and bring an action to recover same in any court of competent jurisdiction. Such penalty in the case of a violation of subdivision d of such section shall be in the amount of five hundred dollars for a first such offense and one thousand dollars for each subsequent offense or for a violation consisting of conduct directed at the tenants of more than one housing accommodation; and in the case of any other violation of such section in the amount of one hundred dollars for the first such offense and five hundred dollars for each subsequent offense. Such order by the city rent agency shall be deemed a final determination for the purposes of judicial review as provided in section 26-411 of this chapter. Such action shall be brought on behalf of the city and any amount recovered shall be paid into the city treasury. Such right of action may be released, compromised or adjusted by the city rent agency at any item subsequent to the issuance of such administrative order. (b) Commence an action to recover damages, as provided for in paragraph two of subdivision d of this section in the event that (i) the tenant has not previously commenced such an action as therein provided and (ii) more than six months have elapsed since the occurrence of the violation or issuance of the order. An action instituted by the city rent agency shall constitute a bar to an action by the person aggrieved. The city rent agency shall pay over one-half of the sum recovered in such action to the person aggrieved and one-half to the city treasury, exclusive of costs and disbursements. (3) (a) Subject to the provisions of subparagraph (b) of this paragraph, make a finding of harassment whenever it determines the existence of a violation of subdivision d of section 26-412 of this chapter in which event the city rent agency may (i) dismiss any pending application for a certificate of eviction and grant any subsequent application for such certificate only upon such terms and conditions as it deems necessary to prevent the circumvention or evasion of provisions of this chapter; (ii) determine that such housing accommodations or any replacement or subdivision thereof (whether or not by demolition, alteration or substantial rehabilitation) shall constitute housing accommodations subject to control under the provisions of this chapter, notwithstanding any definition of that term to the contrary; and (iii) to refuse to credit any adjustments increasing rent mandated by section 26-405 of this chapter and dismiss any applications for an adjustment pursuant to said section for such time and under such terms and conditions as the city rent agency deems necessary to prevent circumvention or evasion of the provisions of this chapter. (b) No proceeding to determine whether housing accommodations have become vacant as a result of harassment may be commenced later than thirty days after the entire structure shall have been vacated, unless the landlord failed to certify his or her intent to alter or demolish the premises as provided by subdivision c of section 26-408 of this chapter. No proceeding shall be maintained for acts performed in good faith and in a reasonable manner for the purposes of operating, maintaining or repairing any building or part thereof. A finding of harassment shall be attached to and noted upon the registration of the housing accommodations affected by such findings, and a copy thereof shall be filed and docketed in the manner of a notice of mechanic's lien affecting the property. The provisions of this paragraph shall bind all persons or parties who succeed to the landlord's interest in said housing accommodations. (4) Revoke any order or determination based upon any statement or entry false in any material respect in any document or report submitted in any proceeding before the city rent agency or required to be kept or filed under this chapter or any requirements thereunder. c. (1) Any court shall advance on the docket or otherwise expedite the disposition of any action or proceeding brought before it pursuant to the provisions of subdivision b of this section. (2) The provisions of subdivision b of this section are cumulative. The enforcement of one provision thereof shall not constitute a bar to the enforcement by action, proceeding or by making a finding or determination pursuant to other provisions of said subdivision. (3) The city rent agency may direct that a refund payment to the tenant for rent collected in violation of subdivision a of section 26-412 include interest from the date of each excessive payment of rent. Where the city rent agency has revoked an order or determination premised on a false statement or entry it may withhold issuance of an order granting increase in maximum rent for such housing accommodations until the landlord has complied with the refund directive, if any, provided for in such order of revocation. d. (1) Where after the city rent agency has granted a certificate of eviction authorizing the landlord to pursue his or her remedies pursuant to law to acquire possession and a tenant voluntarily removes from a housing accommodation or has been removed therefrom by action or proceeding to evict from or recover possession of a housing accommodation upon the ground that the landlord seeks in good faith to recover possession of such accommodation: (a) For his or her immediate and personal use, or for the immediate and personal use by a member or members of his or her immediate family, and such landlord or members of his or her immediate family shall fail to occupy such accommodation within thirty days after the tenant vacates; or (b) For the immediate purpose of withdrawing such housing accommodation from the rental market, and such landlord shall lease or sell the housing accommodation or the space previously occupied thereby, or permit use thereof in a manner other than contemplated in such eviction certificate within a period of one year after such removal of the tenant; or (c) For the immediate purpose of altering or remodeling such housing accommodation, and the landlord (who required possession for the purpose of effecting such alteration or remodeling) shall fail to start the work of alteration or remodeling of such housing accommodation within ninety days after the removal of the last tenant whose removal is necessary to enable the landlord to effect such alteration or remodeling of such accommodation, or if after having commenced such work shall fail or neglect to prosecute the work with reasonable diligence; or (d) For the immediate purpose of demolishing such housing accommodations and constructing a new building in accordance with approved plans, or reasonable amendment thereof, and the landlord has failed to complete the demolition within six months after the removal of the last tenant or, having demolished the premises, has failed or neglected to proceed with the new construction within ninety days after the completion of such demolition, or having commenced such construction work, has failed or neglected to prosecute such work with reasonable diligence; or (e) For some purpose other than those specified above for which the removal of the tenant was sought and the landlord has failed to use the vacated premises for such purposes; such landlord shall, unless for good cause shown be liable to the tenant for three times the damages sustained on account of such removal plus reasonable attorney's fees and costs as determined by the court provided that the tenant commences such action within three years from the expiration of the applicable time period as set forth in this subdivision. The damages sustained by the tenant under this subdivision shall be the difference between the rent paid for the housing accommodation from which such tenant was evicted, and the rental value of a comparable housing accommodation on the open market. In addition to any other damage, the cost of removal of the tenant's property shall be a lawful measure of damages. The remedy herein provided shall be in addition to those provided for in subdivisions a and b of this section. Such acts and omissions on the part of a landlord after issuance of a certificate of eviction are hereby declared to be consistent with the purposes for which such certificate of eviction was issued. (2) A tenant may bring an action against his or her landlord in any court of competent jurisdiction for a violation of subdivision a of section 26-412 of this chapter within: (a) two years from the date of occurrence of an overcharge, defined to mean the amount by which the consideration paid by a tenant to a landlord exceeds the applicable maximum rent, or (b) within one year after the landlord fails to pay a refund as ordered by the city rent agency, such time to be calculated from thirty-three days after the date of the issuance of the order or when the order becomes final, whichever is later, or (c) in the case of an act proscribed by subdivision e of section 26-412 of this chapter, within two years after knowledge of such statement or omission and consequent violation has been made known to the city agency. The landlord shall be liable for reasonable attorney's fees and costs as determined by the court, plus whichever of the following sums is the greater: (i) such amount not more than three times the amount of the overcharge, or the overcharges, upon which the action is based as the court in its discretion may determine or (ii) an amount not less than twenty-five dollars, provided, however, that such amount shall be the amount of the overcharge or overcharges or twenty-five dollars, whichever is greater, if the defendant proves that the violation of the regulation or order in question was neither wilful nor the result of failure to take practicable precautions against the occurrence of the violation. (3) A tenant or occupant who is unlawfully removed by a landlord from any housing accommodation may, within two years from the date of occurrence bring a civil action against the landlord by reason of such unlawful removal. In such action, the landlord shall be liable to the tenant for three times the damages sustained on account of such removal plus reasonable attorney's fees and costs as determined by the court. The damages sustained by the tenant under this paragraph shall be the difference between the rent paid for the housing accommodation from which such tenant was evicted and the rental value of a comparable housing accommodation on the open market. In addition to any other damage the cost of removal of the tenant's property shall be a lawful measure of damage. e. No person (including, but not limited to any officer or employee of the city rent agency) shall be held liable for damages or penalties in any court, on any grounds for or in respect of anything done or omitted to be done in good faith pursuant to any provision of the state rent act or of this chapter, or any regulation, order, or requirement thereunder, notwithstanding that subsequently such provision, regulation, order or requirement may be modified, rescinded, or determined to be invalid. In any action or proceeding wherein a party relies for ground of relief or defense or raises issue or brings into question the construction or validity of any provision of this chapter or any regulation, order, or requirement thereunder, the court having jurisdiction of such action or proceeding may at any stage certify such fact to the city rent agency. The city rent agency may intervene in any such action or proceeding. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-414. Decontrol on basis of vacancy rate. Whenever the city rent agency shall find, after making such studies and investigations as it deems necessary for such purpose, or for processing an application supported by adequate proof filed by an interested party pursuant to regulation that the percentage of vacancies in all or any particular class of housing accommodations in the city, as such class is determined by the city rent agency, is five per centum or more, the controls imposed on rents and evictions by and pursuant to this chapter, with respect to the housing accommodations as to which such finding has been made, shall be forthwith scheduled for orderly decontrol, with due regard to preventing uncertainty, hardship and dislocation, by order of such agency; provided, however, that notwithstanding any provision of this section to the contrary, such agency shall not order the decontrol of any particular class of housing accommodations as to which it shall find that the percentage of vacancies is less than five per centum; provided, further, that no such order shall be made unless such agency shall hold a public hearing on such proposal at which interested persons are given a reasonable opportunity to be heard. Notice of such hearing shall be provided by publication thereof, on at least five days during the period of fifteen days next preceding the date of the commencement of such hearing, in the city record and in at least two daily newspapers having general circulation in the city. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** 26-415. Surveys of need for rent control. As provided in subdivision three of section one of the local emergency housing rent control act, the mayor shall cause to be made, and shall present to the council a report of the results of, a survey of the supply of housing accommodations within the city, the condition of such accommodations and the need for continuing the regulation and control of residential rents and evictions within the city. Added by Laws 1985, Ch. 907, 1, eff. Sept. 1, 1986. ***************************************************** ***************************************************** ***************************************************** ***************************************************** 26-403(e)(2) (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. 26-403.1. High income rent decontrol. 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.


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