§ 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.