§ 5-A — High income rent deregulation

* § 5-a. High income rent deregulation. (a) 1. For purposes of this\nsection, annual income shall mean the federal adjusted gross income as\nreported on the New York state income tax return. Total annual income\nmeans the sum of the annual incomes of all persons whose names are\nrecited as the tenant or co-tenant on a lease who occupy the housing\naccommodation and all other persons that occupy the housing\naccommodation as their primary residence on other than a temporary\nbasis, excluding bona fide employees of such occupants residing therein\nin connection with such employment and excluding bona fide subtenants in\noccupancy pursuant to the provisions of section two hundred twenty-six-b\nof the real property law. In the case where a housing accommodation is\nsublet, the annual income of the tenant or co-tenant recited on the\nlease who will reoccupy the housing accommodation upon the expiration of\nthe sublease shall be considered.\n 2. Deregulation income threshold means total annual income equal to\none hundred seventy-five thousand dollars in each of the two preceding\ncalendar years for proceedings commenced before July first, two thousand\neleven. For proceedings commenced on or after July first, two thousand\neleven, the deregulation income threshold means the total annual income\nequal to two hundred thousand dollars in each of the two preceding\ncalendar years.\n 3. Deregulation rent threshold means two thousand dollars for\nproceedings commenced before July first, two thousand eleven. For\nproceedings commenced on or after July first, two thousand eleven, the\nderegulation rent threshold means two thousand five hundred dollars. For\nproceedings commenced on or after July first, two thousand fifteen, the\nderegulation rent threshold means two thousand seven hundred dollars,\nprovided, however that on January 1, 2016, and annually thereafter, the\nmaximum legal regulated rent for this deregulation threshold shall be\nadjusted by the same percentage as the most recent one year renewal\nadjustment adopted by the rent guidelines board.\n (b) On or before the first day of May in each calendar year, the owner\nof each housing accommodation for which the legal regulated monthly rent\nequals or exceeds the deregulation rent threshold may provide the tenant\nor tenants residing therein with an income certification form prepared\nby the division of housing and community renewal on which such tenant or\ntenants shall identify all persons referred to in subdivision (a) of\nthis section and shall certify whether the total annual income is in\nexcess of the deregulation income threshold in each of the two preceding\ncalendar years. Such income certification form shall state that the\nincome level certified to by the tenant may be subject to verification\nby the department of taxation and finance pursuant to section one\nhundred seventy-one-b of the tax law, and shall not require disclosure\nof any information other than whether the aforementioned threshold has\nbeen exceeded. Such income certification form shall clearly state that:\n(i) only tenants residing in housing accommodations which had a legal\nregulated monthly rent that equals or exceeds the deregulation rent\nthreshold are required to complete the certification form; (ii) that\ntenants have protections available to them which are designed to prevent\nharassment; (iii) that tenants are not required to provide any\ninformation regarding their income except that which is requested on the\nform and may contain such other information the division deems\nappropriate. The tenant or tenants shall return the completed\ncertification to the owner within thirty days after service upon the\ntenant or tenants. In the event that the total annual income as\ncertified is in excess of the deregulation income threshold in each of\nthe two preceding calendar years, the owner may file the certification\nwith the state division of housing and community renewal on or before\nJune thirtieth of such year. Upon filing such certification with the\ndivision, the division shall, within thirty days after the filing, issue\nan order providing that such housing accommodation shall not be subject\nto the provisions of this act upon the expiration of the existing lease.\nA copy of such order shall be mailed by regular and certified mail,\nreturn receipt requested, to the tenant or tenants and a copy thereof\nshall be mailed to the owner.\n (c) 1. In the event that the tenant or tenants either fail to return\nthe completed certification to the owner on or before the date required\nby subdivision (b) of this section or the owner disputes the\ncertification returned by the tenant or tenants, the owner may, on or\nbefore June thirtieth of such year, petition the state division of\nhousing and community renewal to verify, pursuant to section one hundred\nseventy-one-b of the tax law, whether the total annual income exceeds\nthe deregulation income threshold in each of the two preceding calendar\nyears. Within twenty days after the filing of such request with the\ndivision, the division shall notify the tenant or tenants that such\ntenant or tenants named on the lease must provide the division with such\ninformation as the division and the department of taxation and finance\nshall require to verify whether the total annual income exceeds the\nderegulation income threshold in each of the two preceding calendar\nyears. The division's notification shall require the tenant or tenants\nto provide the information to the division within sixty days of service\nupon such tenant or tenants and shall include a warning in bold faced\ntype that failure to respond will result in an order being issued by the\ndivision providing that such housing accommodations shall not be subject\nto the provisions of this act.\n 2. If the department of taxation and finance determines that the total\nannual income is in excess of the deregulation income threshold in each\nof the two preceding calendar years, the division shall, on or before\nNovember fifteenth of such year, notify the owner and tenants of the\nresults of such verification. Both the owner and the tenants shall have\nthirty days within which to comment on such verification results. Within\nforty-five days after the expiration of the comment period, the division\nshall, where appropriate, issue an order providing that such housing\naccommodation shall not be subject to the provisions of this act upon\nexpiration of the existing lease. A copy of such order shall be mailed\nby regular and certified mail, return receipt requested, to the tenant\nor tenants and a copy thereof shall be sent to the owner.\n 3. In the event the tenant or tenants fail to provide the information\nrequired pursuant to paragraph one of this subdivision, the division\nshall issue, on or before December first of such year, an order\nproviding that such housing accommodation shall not be subject to the\nprovisions of this act upon the expiration of the current lease. A copy\nof such order shall be mailed by regular and certified mail, return\nreceipt requested, to the tenant or tenants and a copy thereof shall be\nsent to the owner.\n 4. The provisions of the state freedom of information act shall not\napply to any income information obtained by the division pursuant to\nthis section.\n (d) This section shall apply only to paragraph twelve of subdivision a\nof section five of this act.\n (e) Upon receipt of such order of deregulation pursuant to this\nsection, an owner shall offer the housing accommodation subject to such\norder to the tenant at a rent not in excess of the market rent, which\nfor the purposes of this section means a rent obtainable in an arm's\nlength transaction. Such rental offer shall be made by the owner in\nwriting to the tenant by certified and regular mail and shall inform the\ntenant that such offer must be accepted in writing within ten days of\nreceipt. The tenant shall respond within ten days after receipt of such\noffer. If the tenant declines the offer or fails to respond within such\nperiod, the owner may commence an action or proceeding for the eviction\nof such tenant.\n * NB Expires June 16, 2019\n