Emergency Tenant Protection Act 576/74

* S 5-a. High income rent decontrol. (a) For purposes of this section,
annual income shall mean the federal adjusted gross income as reported
on the New York state income tax return. Total annual income means the
sum of the annual incomes of all persons whose names are recited as the
tenant or co-tenant on a lease who occupy the housing accommodation and
all other persons that occupy the housing accommodation as their primary
residence on other than a temporary basis, excluding bona fide employees
of such occupants residing therein in connection with such employment
and excluding bona fide subtenants in occupancy pursuant to the
provisions of section two hundred twenty-six-b of the real property law.
In the case where a housing accommodation is sublet, the annual income
of the tenant or co-tenant recited on the lease who will reoccupy the
housing accommodation upon the expiration of the sublease shall be
considered.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the legal regulated rent 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 one hundred seventy-five thousand dollars in each of the two
preceding calendar years. Such income certification form shall state
that the income level certified to by the tenant may be subject to
verification by the department of taxation and finance pursuant to
section one hundred seventy-one-b of the tax law, and shall not require
disclosure of any information other than whether the aforementioned
threshold has been exceeded. Such income certification form shall
clearly state that: (i) only tenants residing in housing accommodations
which had a legal regulated rent of two thousand dollars or more per
month 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 one hundred seventy-five thousand dollars in
each such year, the owner may file the certification with the state
division of housing and community renewal on or before June thirtieth of
such year. Upon filing such certification with the division, the
division shall, within thirty days after the filing, issue an order
providing that such housing accommodation shall not be subject to the
provisions of this act upon the expiration of the existing lease. A copy
of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the
certification returned by the tenant or tenants, the owner may, on or
before June thirtieth of such year, petition the state division of
housing and community renewal to verify, pursuant to section one hundred
seventy-one-b of the tax law, whether the total annual income exceeds
one hundred seventy-five thousand dollars in each of the two preceding
calendar years. Within twenty days after the filing of such request with
the division, the division shall notify the tenant or tenants that such
tenant or tenants named on the lease must provide the division with such
information as the division and the department of taxation and finance
shall require to verify whether the total annual income exceeds one
hundred seventy-five thousand dollars in each such year. The division`s
notification shall require the tenant or tenants to provide the
information to the division within sixty days of service upon such
tenant or tenants and shall include a warning in bold faced type that
failure to respond will result in an order being issued by the division
providing that such housing accommodations shall not be subject to the
provisions of this act.
2. If the department of taxation and finance determines that the total
annual income is in excess of one hundred seventy-five thousand dollars
in each of the two preceding calendar years, the division shall, on or
before November fifteenth of such year, notify the owner and tenants of
the results of such verification. Both the owner and the tenants shall
have thirty days within which to comment on such verification results.
Within forty-five days after the expiration of the comment period, the
division shall, where appropriate, issue an order providing that such
housing accommodation shall not be subject to the provisions of this act
upon expiration of the existing lease. A copy of such order shall be
mailed by regular and certified mail, return receipt requested, to the
tenant or tenants and a copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order
providing that such housing accommodation shall not be subject to the
provisions of this act upon the expiration or the current lease. A copy
of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to paragraph twelve of subdivision a
of section five of this act.
(e) Upon receipt of such order of decontrol pursuant to this section,
an owner shall offer the housing accommodation subject to such order to
the tenant at a rent not in excess of the market rent, which for the
purposes of this section means a rent obtainable in an arm`s length
transaction. Such rental offer shall be made by the owner in writing to
the tenant by certified and regular mail and shall inform the tenant
that such offer must be accepted in writing within ten days of receipt.
The tenant shall respond within ten days after receipt of such offer. If
the tenant declines the offer or fails to respond within such period,
the owner may commence an action or proceeding for the eviction of such
tenant.
* NB Expires June 15, 2011