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2520 Scope
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2531
High-Income Decontrol
   

State of New York Codes, Rules and Regulations (NYCRR)
Title 9. Executive Department
Subtitle S. Division of Housing and Community Renewal
Chapter VIII. Rent Stabilization Regulations
Subchapter B. Rent Stabilization Code

Part 2531. High Income Rent Decontrol
2531.1 Definitions
2531.2 Income Certification Form (ICF)
2531.3 Procedure where total annual income as certified on ICF exceeds threshold
2531.4 Procedure where tenant fails to return ICF or owner disputes certification
2531.5 Determination by Department of Taxation of Finance (DTF)
2531.6 Procedure where tenant fails to provide information for determination by Department of Taxation and Finance (DTF)
2531.7 Mailing of submissions relating to high-income decontrol
2531.8 Lease riders regarding high-income decontrol
2531.9 Jurisdictional authority



9 NYCRR Part 2531 Notes

Statutory authority:
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added Part 2531 on 12/20/00

9 NYCRR § 2531.1

§ 2531.1  Definitions

(a) Annual income. For the purposes of this section, annual income shall mean the Federal adjusted gross income as reported on the New York State income tax return.

(b) Total annual income. For the purposes of this section, total annual income means the sum of the annual incomes of all persons whose names are recited as the tenant or co-tenant on a lease who occupy the housing accommodation and all other persons that occupy the housing accommodation as their primary residence on other than a temporary basis, excluding bona fide employees of such occupants residing therein in connection with such employment and excluding bona fide subtenants in occupancy pursuant to the provisions of section 226-b of the Real Property Law. Where a housing accommodation is sublet, the annual income of the tenant or co-tenant recited on the lease who will reoccupy the housing accommodation upon the expiration of the sublease shall be considered.

Statutory authority:
Real Property Law, § 226-B
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added § 2531.1 on 12/20/00

9 NYCRR § 2531.2

§ 2531.2  Income Certification Form (ICF)

On or before the first day in May in each calendar year, commencing with May 1, 1994, the owner of each housing accommodation for which the legal regulated rent is $2,000 or more per month may provide the tenant or tenants residing therein with an income certification form (ICF) prepared by the DHCR on which such tenant or tenants shall identify all persons referred to in section 2531.1(b) of this Part, and shall certify whether the total annual income is in excess of $250,000 in each of the two preceding calendar years, where the first of such two preceding calendar years is 1992 through 1995 inclusive, and $175,000 where the first of such two preceding calendar years is 1996 or later. Such ICF shall not require disclosure of any income information other than whether the aforementioned threshold has been exceeded.

(a) Such ICF form shall state that:

(1) the income level certified to by the tenant may be subject to verification by the Department of Taxation and Finance (DTF) pursuant to section 171-b of the Tax Law;

(2) only tenants residing in housing accommodations which have a legal regulated rent of $2,000 or more per month are required to complete the certification form;

(3) tenants have protections available to them which are designed to prevent harassment; and

(4) tenants are not required to provide any information regarding their income except that which is requested on the form.

(b) Such ICF form may:

(1) require tenants to state whether an occupant, such as a minor child, is not required to file a New York State income tax return;

(2) provide that the operative date for the determination of who is a tenant, co-tenant or occupant who must be identified on the ICF, and whose income, if any, will be included in total annual income, will be the date of service of the ICF upon the tenant;

(3) require the tenant to list all tenants, co-tenants, and other occupants whose incomes may be included in total annual income, and who vacated the housing accommodation within the calendar year in which the ICF is served, or within the two calendar years preceding the service of the ICF, and the dates on which such persons vacated the housing accommodation;

(4) require the tenant to include in total annual income the income of any such person who vacated the housing accommodation temporarily; and

(5) contain such other information as the DHCR deems appropriate.

(c) Section 2527.9 of this Title to the contrary notwithstanding, the owner must serve the ICF by at least one of the following methods: personal delivery, certified mail, regular first class mail, or as otherwise provided in an operational bulletin issued pursuant to section 2527.11 of this Title. The owner shall obtain and retain, the following proofs of service:

(1) for personal delivery, a copy of the ICF signed and dated by the tenant acknowledging receipt;

(2) for certified mail, a United States Postal Service receipt stamped by the United States Postal Service; or

(3) for regular first class mail, a United States Postal Service certificate of mailing stamped by the United States Postal Service.

(d) The tenant or tenants shall return the completed certification to the owner within 30 days after service upon the tenant or tenants.

Statutory authority:
Tax Law, § 171-B
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added § 2531.2 on 12/20/00

9 NYCRR § 2531.3

§ 2531.3  Procedure where total annual income as certified on ICF exceeds threshold

In the event that the total annual income as certified is in excess of $250,000 or $175,000 in each such year, whichever applies, as provided in section 2531.2 of this Part, the owner may file an owner's petition for deregulation (OPD), accompanied by the ICF, with the DHCR on or before June 30th of such year. The DHCR shall issue within 30 days after the filing of such OPD, an order providing that such housing accommodation shall not be subject to the provisions of the RSL upon the expiration of the existing lease. A copy of such order shall be mailed by regular and certified mail, return receipt requested, to the tenant or tenants and a copy thereof shall be mailed to the owner. Service shall be deemed to be complete upon mailing by the DHCR.

Statutory authority:
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added § 2531.3 on 12/20/00

9 NYCRR § 2531.4

§ 2531.4  Procedure where tenant fails to return ICF or owner disputes certification

(a) In the event that the tenant or tenants either fail to return the completed ICF to the owner on or before the date required by section 2531.2(d) of this Part or the owner disputes the certification returned by the tenant or tenants, the owner may, on or before June 30th of such year, file an owner's petition for deregulation (OPD) which petitions the DHCR to verify, pursuant to section 171-b of the Tax Law, whether the total annual income exceeds $250,000 or $175,000 in each of the two preceding calendar years, whichever applies, as provided in section 2531.2 of this Part.

(b) Within 20 days after the filing of such request with the DHCR, the DHCR shall notify the tenant or tenants named on the lease that such tenant or tenants must provide the DHCR with such information as the DHCR and the DTF shall require to verify whether the total annual income exceeds $250,000 or $175,000, whichever applies, in each such year.

(1) The tenant or tenants are required to submit a photocopy of either the preprinted mailing labels used on the New York State income tax returns for the applicable years, or the first page of the New York State income tax returns for the applicable years, for each tenant or occupant whose income is to be included in the total annual income pursuant to section 2531.1(b) of this Part, or in the event neither is available, a written explanation indicating why such income tax returns were not filed for the applicable years.

(2) The tenant or tenants shall delete all social security numbers and income figures from all preprinted mailing labels or tax returns submitted. For any tenant or occupant who the tenant reports did not file a New York State income tax return for any applicable year, the tenant or occupant's name and address must be supplied on an appropriate form prescribed by the DHCR as it would have appeared had that tenant or occupant filed such return.

(3) The tenant or tenants shall provide the information to the DHCR within 60 days of service of the notice upon such tenant or tenants, which notice shall include a warning in bold faced type setting forth the requirement that failure to respond by not providing any information requested by the DHCR shall result in an order being issued by the DHCR providing that such housing accommodation shall not be subject to the provisions of the RSL and this Code. Section 2527.9 of this Title to the contrary notwithstanding, the tenant or tenants shall be required to retain proof of the delivery of such information to the DHCR, which proof shall consist of either, where delivery is made personally, a copy of the response with a timely DHCR date stamp acknowledging receipt, or where delivery is made by certified mail, a United States Postal Service receipt stamped by the United States Postal Service, or where delivery is made by regular first class mail, a United States Postal Service certificate of mailing stamped by the United States Postal Service; or as otherwise provided in an operational bulletin issued pursuant to section 2527.11 of this Title. Service shall be deemed to be complete upon mailing in accordance with section 2531.7 of this Part.

Statutory authority:
Tax Law, § 171-B
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added § 2531.4 on 12/20/00

9 NYCRR § 2531.5

§ 2531.5  Determination by Department of Taxation of Finance (DTF)

If the DTF determines that the total annual income is in excess of $250,000 or $175,000 in each of the two preceding calendar years, whichever applies as provided in section 2531.2 of this Part, the DHCR shall, on or before November 15th of the year in which DTF makes such determination, notify the owner and tenants of the results of such verification. Both the owner and the tenants shall have 30 days within which to comment on such verification results. Within 45 days after the expiration of the comment period, the DHCR shall, where appropriate, issue an order providing that such housing accommodation shall not be subject to the provisions of the RSL upon the expiration of the existing lease. A copy of such order shall be mailed by regular and certified mail, return receipt requested, to the tenant or tenants and a copy thereof shall be sent to the owner. Where the DTF determines that the income threshold has not been met, the DHCR shall issue an order denying the OPD. If the DTF cannot ascertain whether the threshold has been met, the DHCR may issue an order denying the OPD, or request additional information.

Statutory authority:
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added § 2531.5 on 12/20/00

9 NYCRR 2531.6

§ 2531.6   Procedure where tenant fails to provide information for determination by Department of Taxation and Finance (DTF)

In the event the tenant or tenants fail to provide the information required pursuant to section 2531.4 of this Part, the DHCR shall, on or before the next December 1st, issue an order providing that such housing accommodation shall not be subject to the provisions of the RSL and this Code upon the expiration of the current lease. A copy of such order of decontrol 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.

Statutory authority:
Administrative Code of the City of New York
26-511(b) and 26-518(a)

History:
Added § 2531.6 on 12/20/00

9 NYCRR § 2531.7

§ 2531.7  Mailing of submissions relating to high-income decontrol

Where a deadline for submission is specified in this Part for submissions by owner or tenant to the DHCR, such submission must be filed in person or by mail, or as otherwise provided in an operational bulletin issued pursuant to section 2527.11 of this Title, by such deadline. If the submission is filed by mail, it must be postmarked no later than such deadline. If the prepaid postage on the envelope in which the submission is mailed is by private postage meter, and the envelope does not have an official United States Postal Service postmark, then the submission will not be considered timely filed unless received by such deadline, or other adequate proof that the submission was mailed by the date specified, such as an official Postal Service receipt or certificate of mailing, is submitted.

Statutory authority:
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added § 2531.7 on 12/20/00

9 NYCRR § 2531.8

§ 2531.8  Lease riders regarding high-income decontrol

Where a lease rider regarding decontrol on the basis of high-income, as provided for in section 2522.5(g)(2) of this Title is used, an order of decontrol shall take effect upon the date specified in such rider.

Statutory authority:
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History:
Added § 2531.8 on 12/20/00

9 NYCRR § 2531.9

§ 2531.9  Jurisdictional authority

The expiration of the time periods prescribed in this Part for action by the DHCR shall not divest the DHCR of its authority to process petitions filed pursuant to this Part in accordance with the above procedures, and to issue final determinations pursuant to this Part.

Statutory authority:
Administrative Code of the City of New York
§§ 26-511(b) and 26-518(a)

History
Added § 2531.9 on 12/20/00

 

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