Rent Regulation Reform Act of 1997

Assembly Bill 8346 — Senate Bill 5553

Note: What follows is the actual text of the "Rent Regulation Reform Act of 1997. To many it might not make much sense as it, for the most part, amends pre-existing laws. To understand and appreciate the effect and impact of the amendments, one should have knowledge of those amended laws. Fortunately, many of those laws are available on TenantNet. As soon as we can, we will place amended versions of the laws on the web site. For a summary of the changes, refer to (what we've been told) is the legislative memo.


                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

           S. 5553                                                  A. 8346

                              1997-1998 Regular Sessions

                             S E N A T E - A S S E M B L Y

                                     June 19, 1997
                                      ___________

       IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
         Governor) -- read twice and ordered printed, and when  printed  to  be
         committed to the Committee on Rules

       IN  ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M. of
         A. Silver, Lopez, Farrell, Sanders,  Clark,  Pheffer,  Meeks,  Wright,
         Katz, Arroyo, Aubry, Boyland, Brennan, Brodsky, Colton, Cook, Crowley,
         Diaz,  Feldman,  Green,  Greene,  Kaufman,  Klein,  Lafayette, Lentol,
         McLaughlin,  Millman,  Norman,  Ortiz,  Polonetsky,  Pretlow,  Rivera,
         Towns,  Vitaliano, Weinstein, Weisenberg) -- (at request of the Gover-
         nor) -- read once and referred to the Committee on Housing

       AN ACT to enact the rent regulation reform act of 1997; to amend chapter
         576 of the laws of 1974, amending the emergency housing  rent  control
         law  relating  to  the control of and stabilization of rent in certain
         cases, chapter 274 of the laws of  1946,  constituting  the  emergency
         housing  rent  control  law, chapter 329 of the laws of 1963, amending
         the emergency housing rent control law relating to  the  recontrol  of
         rents  in certain cases, the emergency housing rent control law, chap-
         ter 555 of the laws of 1982, amending the general business law and the
         administrative code of the city of New York relating to conversion  of
         rental  residential  property to cooperative or condominium  ownership
         in the city of New York and chapter 402 of the laws of 1983,  amending
         the  general business law relating to conversion of rental residential
         property to cooperative or condominium ownership  in  certain  munici-
         palities  in  the  counties  of  Nassau,  Westchester and Rockland, in
         relation to their periods of effectiveness;  to  amend  the  emergency
         housing rent control law, the emergency tenant protection act of nine-
         teen seventy-four, the administrative code of the city of New York and
         the  tax  law,  in relation to eliminating rent regulation for certain
         high income tenants; to amend the administrative code of the  city  of
         New  York and the emergency tenant protection act of nineteen seventy-
         four, in relation to limiting rent increase after vacancy of a housing
         accommodation; to amend the public  housing  law,  the  administrative
         code  of  the city of New York, the emergency tenant protection act of

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             { } is old law to be omitted.
                                                                  LBD11305-01-7

       S. 5553                             2                            A. 8346

         nineteen seventy-four, the emergency housing rent control law and  the
         local emergency housing rent control act, in relation to succession to
         a  rent  regulated  housing  accommodation; to amend the penal law, in
         relation  to  harassment of rent regulated tenants; to amend the emer-
         gency tenant protection act of nineteen seventy-four and the  adminis-
         trative  code  of the city of New York, in relation to registration of
         rents and charges related thereto; to amend the civil practice law and
         rules, in relation to a four year statute of limitations for  residen-
         tial  rent  overcharges;  to  amend  the  real  property  actions  and
         proceedings law, in relation to proceedings to recover possession;  to
         amend  the administrative code of the city of New York, in relation to
         demolition of rent regulated housing accommodations; to amend the real
         property law, in relation to warranty of habitability

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  Short title. This act shall known and may be cited as the
    2  "rent regulation reform act of 1997".
    3    S 2. Section 17 of chapter 576 of the laws of 1974,  constituting  the
    4  emergency  tenant protection act of nineteen seventy-four, as amended by
    5  chapter 253 of the laws of 1993, is amended to read as follows:
    6    S 17. Effective date.   This act shall  take  effect  immediately  and
    7  shall  remain in full force and effect until and including the fifteenth
    8  day of June {1997} 2003; except that sections two and three  shall  take
    9  effect  with  respect  to any city having a population of one million or
   10  more and section one shall take effect with respect to any  other  city,
   11  or  any  town  or village whenever the local legislative body of a city,
   12  town or village determines the existence of a public emergency  pursuant
   13  to  section  three  of  the  emergency tenant protection act of nineteen
   14  seventy-four, as enacted by section four of this act, and provided  that
   15  the  housing accommodations subject on the effective date of this act to
   16  stabilization pursuant to the New York city rent  stabilization  law  of
   17  nineteen  hundred  sixty-nine  shall remain subject to such law upon the
   18  expiration of this act.
   19    S 3. Subdivision 2 of section 1 of chapter 274 of the  laws  of  1946,
   20  constituting the emergency housing rent control law, as amended by chap-
   21  ter 253 of the laws of 1993, is amended to read as follows:
   22    2.  The  provisions  of  this  act,  and  all  regulations, orders and
   23  requirements thereunder shall remain in full force and effect until  and
   24  including June 15, {1997} 2003.
   25    S  4. Section 2 of chapter 329 of the laws of 1963, amending the local
   26  emergency housing rent control law relating to recontrol of rents in the
   27  city of Albany, as amended   by chapter 253 of  the  laws  of  1993,  is
   28  amended to read as follows:
   29    S  2.  This  act  shall  take effect immediately and the provisions of
   30  subdivision 6 of section 12 of the emergency housing rent  control  law,
   31  as  added  by  this act, shall remain in full force and effect until and
   32  including June 15, {1997} 2003.
   33    S 5. Section 10 of chapter 555 of  the  laws  of  1982,  amending  the
   34  general business law and the administrative code of the city of New York
   35  relating  to conversion of residential property to cooperative or condo-
   36  minium ownership in the city of New York, as amended by chapter  253  of
   37  the laws of 1993, is amended to read as follows:

       S. 5553                             3                            A. 8346

    1    S  10.  This  act  shall  take  effect immediately; provided, that the
    2  provisions of sections one, two and nine of this  act  shall  remain  in
    3  full  force  and  effect  only until and including June 15, {1997} 2003;
    4  provided further that the provisions of section three of this act  shall
    5  remain  in  full  force  and effect only so long as the public emergency
    6  requiring the regulation and control of residential rents and  evictions
    7  continues  as  provided in subdivision 3 of section 1 of the local emer-
    8  gency housing rent control act; provided further that the provisions  of
    9  sections  four,  five, six and seven of this act shall expire in accord-
   10  ance with the provisions of section 26-520 of the administrative code of
   11  the city of New York as such section of the administrative code is, from
   12  time to time, amended; provided further that the provisions  of  section
   13  26-511 of the administrative code of the city of New York, as amended by
   14  this act, which the New York City Department of Housing Preservation and
   15  Development  must  find  are  contained  in  the code of the real estate
   16  industry stabilization association of such city in order to approve  it,
   17  shall  be deemed contained therein as of the effective date of this act;
   18  and provided further that any plan accepted for filing by the department
   19  of law on or before the effective date of this act shall continue to  be
   20  governed  by  the provisions of section 352-eeee of the general business
   21  law as they had existed immediately prior to the effective date of  this
   22  act.
   23    S 6. Section 4 of chapter 402 of the laws of 1983, amending the gener-
   24  al  business  law relating to conversions of rental residential property
   25  to cooperative or condominium ownership in certain municipalities in the
   26  counties of Nassau, Westchester and Rockland, as amended by chapter  253
   27  of the laws of 1993, is amended to read as follows:
   28    S  4.  This  act  shall  take  effect  immediately; provided, that the
   29  provisions of sections one and three of this act shall  remain  in  full
   30  force  and  effect  only  until  and including June 15, {1997} 2003; and
   31  provided further that any plan accepted for filing by the department  of
   32  law  on  or  before  the effective date of this act shall continue to be
   33  governed by the provisions of section 352-eee of  the  general  business
   34  law  as they had existed immediately prior to the effective date of this
   35  act.
   36    S 7.  Paragraph (n) of subdivision 2 of section 2 of  chapter  274  of
   37  the  laws  of 1946, constituting the emergency housing rent control law,
   38  as added by chapter 253 of the laws of  1993,  is  amended  to  read  as
   39  follows:
   40    (n)  any  housing  accommodation  with  a maximum rent of two thousand
   41  dollars or more per month at any time between the effective date of this
   42  paragraph and October first, nineteen hundred ninety-three which  is  or
   43  becomes  vacant on or after the effective date of this paragraph, OR ANY
   44  HOUSING ACCOMMODATION WITH A MAXIMUM RENT OF  TWO  THOUSAND  DOLLARS  OR
   45  MORE  PER  MONTH  AT ANY TIME ON OR AFTER THE EFFECTIVE DATE OF THE RENT
   46  REGULATION REFORM ACT OF 1997 WHICH IS OR BECOMES VACANT ON OR AFTER THE
   47  EFFECTIVE DATE OF THE RENT REGULATION REFORM ACT OF 1997.   This  exclu-
   48  sion  shall  not  apply, however, to or become effective with respect to
   49  housing accommodations which the commissioner determines or  finds  that
   50  the  landlord  or any person acting on his or her behalf, with intent to
   51  cause the tenant to  vacate,  has  engaged  in  any  course  of  conduct
   52  (including,  but  not  limited  to,  interruption  or  discontinuance of
   53  required services) which interfered with or disturbed or was intended to
   54  interfere with or disturb the comfort, repose, peace  or  quiet  of  the
   55  tenant  in his or her use or occupancy of the housing accommodations and

       S. 5553                             4                            A. 8346

    1  in connection with such course of conduct, any other general enforcement
    2  provision of this law shall also apply.
    3    S  7-a.  Paragraph  13 of subdivision (a) of section 5 of section 4 of
    4  chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
    5  protection  act of nineteen seventy-four, as added by chapter 253 of the
    6  laws of 1993, is amended to read as follows:
    7    (13) any housing accommodation with a  legal  regulated  rent  of  two
    8  thousand  dollars  or  more  per month at any time between the effective
    9  date of this paragraph and October first, nineteen hundred  ninety-three
   10  which  is or becomes vacant on or after the effective date of this para-
   11  graph, OR ANY HOUSING ACCOMMODATION WITH A LEGAL REGULATED RENT  OF  TWO
   12  THOUSAND DOLLARS OR MORE PER MONTH AT ANY TIME ON OR AFTER THE EFFECTIVE
   13  DATE  OF  THE  RENT  REGULATION  REFORM  ACT OF 1997 WHICH IS OR BECOMES
   14  VACANT ON OR AFTER THE EFFECTIVE DATE OF THE RENT REGULATION REFORM  ACT
   15  OF 1997.  Provided however, that this exclusion shall not apply to hous-
   16  ing  accommodations  which  became  or become subject to this act (a) by
   17  virtue of receiving tax benefits pursuant to section four hundred  twen-
   18  ty-one-a  or  four  hundred  eighty-nine  of  the real property tax law,
   19  except as otherwise provided in subparagraph (i)  of  paragraph  (f)  of
   20  subdivision two of section four hundred twenty-one-a of the real proper-
   21  ty tax law, or (b) by virtue of article seven-C of the multiple dwelling
   22  law.  This  paragraph  shall  not apply, however, to or become effective
   23  with respect to housing accommodations which the commissioner determines
   24  or finds that the landlord or any person acting on his  or  her  behalf,
   25  with  intent to cause the tenant to vacate, has engaged in any course of
   26  conduct (including, but not limited to, interruption  or  discontinuance
   27  of required services) which interfered with or disturbed or was intended
   28  to  interfere with or disturb the comfort, repose, peace or quiet of the
   29  tenant in his or her use or occupancy of the housing accommodations  and
   30  in connection with such course of conduct, any other general enforcement
   31  provision of this act shall also apply.
   32    S  7-b.  Paragraph (m) of subdivision 2 of section 2 of chapter 274 of
   33  the laws of 1946, constituting the emergency housing rent  control  law,
   34  as  added  by  chapter  253  of  the laws of 1993, is amended to read as
   35  follows:
   36    (m) upon the issuance of an order of decontrol by the division,  hous-
   37  ing  accommodations  which: (1) are occupied by persons who have a total
   38  annual income in excess of {two} ONE hundred {fifty} SEVENTY-FIVE  thou-
   39  sand  dollars in each of the two preceding calendar years, as defined in
   40  and subject to the limitations and process set forth in section two-a of
   41  this law; and (2) have a maximum rent of two thousand  dollars  or  more
   42  per month {as of October first, nineteen hundred ninety-three}.
   43    S  8.    Subdivision  (b) and paragraphs 1 and 2 of subdivision (c) of
   44  section 2-a of chapter 274 of the laws of 1946, constituting  the  emer-
   45  gency  housing  rent control law, as added by chapter 253 of the laws of
   46  1993, are amended to read as follows:
   47    (b) On or before the first day of May in each calendar year, the owner
   48  of each housing accommodation for which the maximum  rent {as of October
   49  first, nineteen hundred ninety-three} is two thousand  dollars  or  more
   50  per  month  may  provide  the tenant or tenants residing therein with an
   51  income certification form prepared by the division of housing and commu-
   52  nity renewal on which such tenant or tenants shall identify all  persons
   53  referred to in subdivision (a) of this section and shall certify whether
   54  the total annual income is in excess of {two} ONE hundred {fifty} SEVEN-
   55  TY-FIVE  thousand  dollars  in each of the two preceding calendar years.
   56  Such income certification form shall state that the income level  certi-

       S. 5553                             5                            A. 8346

    1  fied  to  by the tenant may be subject to verification by the department
    2  of taxation and finance pursuant to section one hundred seventy-one-b of
    3  the tax law and shall not require disclosure of any  income  information
    4  other than whether the aforementioned threshold has been exceeded.  Such
    5  income  certification  form  shall  clearly state that: (i) only tenants
    6  residing in housing accommodations which had a maximum rent of two thou-
    7  sand dollars or more per month {as of October  first,  nineteen  hundred
    8  ninety-three} are required to complete the certification form; (ii) that
    9  tenants have protections available to them which are designed to prevent
   10  harassment;  (iii) that tenants are not required to provide any informa-
   11  tion regarding their income except that which is requested on  the  form
   12  and  may  contain such other information the division deems appropriate.
   13  The tenant or tenants shall return the completed  certification  to  the
   14  owner  within  thirty  days after service upon the tenant or tenants. In
   15  the event that the total annual income as  certified  is  in  excess  of
   16  {two}  ONE  hundred  {fifty}  SEVENTY-FIVE thousand dollars in each such
   17  year, the owner may file the certification with the  state  division  of
   18  housing  and community renewal on or before June thirtieth of such year.
   19  Upon filing such certification with the division,  the  division  shall,
   20  within thirty days after the filing, issue an order of decontrol provid-
   21  ing  that  such  housing  accommodations    shall  not be subject to the
   22  provisions of this law as of the first day of  June  in  the  year  next
   23  succeeding  the filing of the certification by the owner. A copy of such
   24  order shall be mailed by regular  and  certified  mail,  return  receipt
   25  requested,  to  the tenant or tenants and a copy thereof shall be mailed
   26  to the owner.
   27    1. In the event that the tenant or tenants either fail to  return  the
   28  completed  certification to the owner on or before the  date required by
   29  subdivision (b) of this section or the owner disputes the  certification
   30  returned  by  the  tenant  or  tenants, the owner may, on or before June
   31  thirtieth of such year, petition  the  state  division  of  housing  and
   32  community  renewal  to  verify, pursuant to section one hundred seventy-
   33  one-b of the tax law, whether the total annual income exceeds {two}  ONE
   34  hundred {fifty} SEVENTY-FIVE thousand dollars in each of the two preced-
   35  ing calendar  years. Within twenty days after the filing of such request
   36  with  the division, the division shall notify the tenant or tenants that
   37  such tenant or tenants must provide the division with  such  information
   38  as the division and the department of taxation and finance shall require
   39  to  verify  whether  the  total  annual income exceeds {two} ONE hundred
   40  {fifty} SEVENTY-FIVE thousand dollars in each such year. The  division`s
   41  notification shall require the tenant or tenants to provide the informa-
   42  tion  to  the  division within sixty days of service upon such tenant or
   43  tenants and shall include a warning in bold faced type that  failure  to
   44  respond  will  result in an order of decontrol being issued by the divi-
   45  sion for such housing accommodation.
   46    2. If the department of taxation and finance determines that the total
   47  annual income is in excess of {two}  ONE  hundred  {fifty}  SEVENTY-FIVE
   48  thousand  dollars in each of the two preceding calendar years, the divi-
   49  sion shall, on or before November fifteenth of  such  year,  notify  the
   50  owner  and  tenants of the results of such verification.  Both the owner
   51  and the tenants shall have thirty days within which to comment  on  such
   52  verification  results.    Within forty-five days after the expiration of
   53  the comment period, the division  shall,  where  appropriate,  issue  an
   54  order  of  decontrol providing that such housing accommodation shall not
   55  be subject to the provisions of this law as of the first day of March in
   56  the year next succeeding the filing of the  owner`s  petition  with  the

       S. 5553                             6                            A. 8346

    1  division.  A copy of such order shall be mailed by regular and certified
    2  mail, return receipt requested, to the tenant  or  tenants  and  a  copy
    3  thereof shall be sent to the owner.
    4    S 9.  Paragraph 12 of subdivision a of section 5 of section 4 of chap-
    5  ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
    6  protection act of nineteen seventy-four, as added by chapter 253 of  the
    7  laws of 1993, is amended to read as follows:
    8    (12)  upon    issuance  of  an order by the division, housing accommo-
    9  dations which are:   (1) occupied by persons who  have  a  total  annual
   10  income  in  excess  of  {two}  ONE hundred {fifty} SEVENTY-FIVE thousand
   11  dollars per annum in each  of  the  two  preceding  calendar  years,  as
   12  defined  in  and  subject  to  the  limitations and process set forth in
   13  section five-a of this act; and (2) have a legal regulated rent  of  two
   14  thousand  dollars  or  more  per  month  {as  of October first, nineteen
   15  hundred ninety-three}.  Provided however, that this exclusion shall  not
   16  apply  to  housing accommodations which became or become subject to this
   17  act (a) by virtue of receiving tax benefits  pursuant  to  section  four
   18  hundred  twenty-one-a  or  four hundred eighty-nine of the real property
   19  tax law, except as otherwise provided in subparagraph (i)  of  paragraph
   20  (f)  of subdivision two of section four hundred twenty-one-a of the real
   21  property tax law, or (b) by virtue of article seven-C  of  the  multiple
   22  dwelling law.
   23    S  10.  Subdivision  (b)  and paragraphs 1 and 2 of subdivision (c) of
   24  section 5-a of section 4 of chapter 576 of the laws of 1974,  constitut-
   25  ing  the  emergency  tenant  protection act of nineteen seventy-four, as
   26  added by chapter 253 of the  laws  of  1993,  are  amended  to  read  as
   27  follows:
   28    (b) On or before the first day of May in each calendar year, the owner
   29  of  each housing accommodation for which the legal regulated rent {as of
   30  October first, nineteen hundred ninety-three} is two thousand dollars or
   31  more per month may provide the tenant or tenants residing  therein  with
   32  an  income  certification  form  prepared by the division of housing and
   33  community renewal on which such tenant or  tenants  shall  identify  all
   34  persons referred to in subdivision (a) of this section and shall certify
   35  whether  the  total  annual  income  is  in  excess of {two} ONE hundred
   36  {fifty} SEVENTY-FIVE thousand dollars  in  each  of  the  two  preceding
   37  calendar  years.  Such  income  certification  form shall state that the
   38  income level certified to by the tenant may be subject  to  verification
   39  by  the  department  of  taxation  and  finance  pursuant to section one
   40  hundred seventy-one-b of the tax law,  and shall not require  disclosure
   41  of  any  information other than whether the aforementioned threshold has
   42  been exceeded.  Such income certification form shall clearly state that:
   43  (i) only tenants residing in housing accommodations which  had  a  legal
   44  regulated  rent of two thousand dollars or more per month {as of October
   45  first, nineteen hundred  ninety-three}  are  required  to  complete  the
   46  certification form; (ii) that tenants have protections available to them
   47  which  are  designed  to  prevent harassment; (iii) that tenants are not
   48  required to provide any information regarding their income  except  that
   49  which  is  requested  on the form and may contain such other information
   50  the division deems appropriate.  The tenant or tenants shall return  the
   51  completed  certification  to  the owner within thirty days after service
   52  upon the tenant or tenants. In the event that the total annual income as
   53  certified is in excess of {two} ONE hundred {fifty}  SEVENTY-FIVE  thou-
   54  sand  dollars  in  each  such year, the owner may file the certification
   55  with the state division of housing and community renewal  on  or  before
   56  June  thirtieth  of  such  year. Upon filing such certification with the

       S. 5553                             7                            A. 8346

    1  division, the division shall, within thirty days after the filing, issue
    2  an order providing that such housing accommodation shall not be  subject
    3  to the provisions of this act upon the expiration of the existing lease.
    4  A  copy  of  such  order  shall be mailed by regular and certified mail,
    5  return receipt requested, to the tenant or tenants and  a  copy  thereof
    6  shall be mailed to the owner.
    7    1.  In  the event that the tenant or tenants either fail to return the
    8  completed certification to the owner on or before the  date required  by
    9  subdivision  (b) of this section or the owner disputes the certification
   10  returned by the tenant or tenants, the owner  may,  on  or  before  June
   11  thirtieth  of  such  year,  petition   the state division of housing and
   12  community renewal to verify, pursuant to section  one  hundred  seventy-
   13  one-b  of the tax law, whether the total annual income exceeds {two} ONE
   14  hundred {fifty} SEVENTY-FIVE thousand dollars in each of the two preced-
   15  ing calendar years. Within twenty days after the filing of such  request
   16  with  the division, the division shall notify the tenant or tenants that
   17  such tenant or tenants named on the lease must provide the division with
   18  such information as the division and  the  department  of  taxation  and
   19  finance  shall require to verify whether the total annual income exceeds
   20  {two} ONE hundred {fifty} SEVENTY-FIVE thousand  dollars  in  each  such
   21  year.    The division`s notification shall require the tenant or tenants
   22  to provide the information to the division within sixty days of  service
   23  upon  such  tenant  or tenants and shall include a warning in bold faced
   24  type that failure to respond will result in an order being issued by the
   25  division providing that such housing accommodations shall not be subject
   26  to the provisions of this act.
   27    2.  If the department of taxation  and  finance  determines  that  the
   28  total   annual  income  is  in  excess  of  {two}  ONE  hundred  {fifty}
   29  SEVENTY-FIVE thousand dollars in each  of  the  two  preceding  calendar
   30  years, the division shall, on or before November fifteenth of such year,
   31  notify  the  owner and tenants of the results of such verification. Both
   32  the owner and the tenants shall have thirty days within which to comment
   33  on such verification results. Within forty-five days after  the  expira-
   34  tion of the comment period, the division shall, where appropriate, issue
   35  an  order providing that such housing accommodation shall not be subject
   36  to the provisions of this act upon expiration of the existing  lease.  A
   37  copy of such order shall be mailed by regular and certified mail, return
   38  receipt  requested, to the tenant or tenants and a copy thereof shall be
   39  sent to the owner.
   40    S 11.  Subparagraph (j) of paragraph 2 of  subdivision  e  of  section
   41  26-403 of the administrative code of the city of New York, as amended by
   42  local law number 4 of the city of New York for the year 1994, is amended
   43  to read as follows:
   44    (j)  Upon the issuance of an order of decontrol by the division, hous-
   45  ing accommodations which: (1) are occupied by persons who have  a  total
   46  annual  income in excess of {two} ONE hundred {fifty} SEVENTY-FIVE thou-
   47  sand dollars per annum in each of the two preceding calendar  years,  as
   48  defined  in  and  subject  to  the  limitations and process set forth in
   49  section 26-403.1 of this chapter; and (2) have a  maximum  rent  of  two
   50  thousand  dollars or more per month.  Provided however, that this exclu-
   51  sion shall not apply to housing accommodations which  became  or  become
   52  subject  to  this  law  by  virtue of receiving tax benefits pursuant to
   53  section four hundred eighty-nine of the real property tax law.
   54    S 12. Subparagraph (k) of paragraph 2  of  subdivision  e  of  section
   55  26-403 of the administrative code of the city of New York, as amended by

       S. 5553                             8                            A. 8346

    1  local  law  number  13  of  the  city  of New York for the year 1997, is
    2  amended to read as follows:
    3    (k)  Any  housing accommodation which becomes vacant on or after April
    4  first, nineteen hundred ninety-seven and where at the  time  the  tenant
    5  vacated  such  housing  accommodation  the maximum rent was two thousand
    6  dollars or more per month, OR ANY  HOUSING  ACCOMMODATION  WHICH  IS  OR
    7  BECOMES  VACANT  ON  OR  AFTER THE EFFECTIVE DATE OF THE RENT REGULATION
    8  REFORM ACT OF 1997 WITH A MAXIMUM RENT OF TWO THOUSAND DOLLARS  OR  MORE
    9  PER  MONTH.    Provided  however, that this exclusion shall not apply to
   10  housing accommodations which became or become subject  to  this  law  by
   11  virtue of receiving tax benefits pursuant to section four hundred eight-
   12  y-nine  of the real property tax law. This subparagraph shall not apply,
   13  however, to or become effective with respect to  housing  accommodations
   14  which  the  commissioner  determines  or  finds that the landlord or any
   15  person acting on his or her behalf, with intent to cause the  tenant  to
   16  vacate, has engaged in any course of conduct (including, but not limited
   17  to, interruption or discontinuance of required services) which interfer-
   18  ed  with  or  disturbed or was intended to interfere with or disturb the
   19  comfort, repose, peace or quiet of the tenant in his or her use or occu-
   20  pancy of the housing accommodations and in connection with  such  course
   21  of  conduct,  any  other general enforcement provision of this law shall
   22  also apply.
   23    S 13. Subdivision (b) and paragraphs 1 and 2  of  subdivision  (c)  of
   24  section  26-403.1  of  the  administrative code of the city of New York,
   25  subdivision (b) as amended by local law number 4 of the city of New York
   26  for the year 1994, and paragraphs 1 and 2 of subdivision (c) as added by
   27  chapter 253 of the laws of 1993, are amended to read as follows:
   28    (b) On or before the first day of May in each calendar year, the owner
   29  of each housing accommodation for which the maximum rent is two thousand
   30  dollars or more per month may provide the  tenant  or  tenants  residing
   31  therein  with  an  income certification form prepared by the division of
   32  housing and community renewal on which  such  tenant  or  tenants  shall
   33  identify  all persons referred to in subdivision (a) of this section and
   34  shall certify whether the total annual income is in excess of {two}  ONE
   35  hundred {fifty} SEVENTY-FIVE thousand dollars in each of the two preced-
   36  ing calendar years.  Such income certification form shall state that the
   37  income  level  certified to by the tenant may be subject to verification
   38  by the department of  taxation  and  finance  pursuant  to  section  one
   39  hundred seventy-one-b of the tax law and shall not require disclosure of
   40  any  income  information other than whether the aforementioned threshold
   41  has been exceeded.  Such income certification form shall  clearly  state
   42  that:  (i)  only tenants residing in housing accommodations which have a
   43  maximum rent of two thousand dollars or more per month are  required  to
   44  complete  the  certification  form;  (ii)  that tenants have protections
   45  available to them which are designed to prevent harassment;  (iii)  that
   46  tenants  are  not  required  to  provide any information regarding their
   47  income except that which is requested on the form and may  contain  such
   48  other  information the division deems appropriate. The tenant or tenants
   49  shall return the completed certification to the owner within thirty days
   50  after service upon the tenant or tenants. In the event  that  the  total
   51  annual  income  as  certified  is in excess of {two} ONE hundred {fifty}
   52  SEVENTY-FIVE thousand dollars in each such year, the owner may file  the
   53  certification  with  the state division of housing and community renewal
   54  on or before June thirtieth of such year. Upon filing such certification
   55  with the division, the division shall,  within  thirty  days  after  the
   56  filing, issue an order of decontrol providing that such housing accommo-

       S. 5553                             9                            A. 8346

    1  dations  shall  not  be  subject to the provisions of this law as of the
    2  first day of June in the year next succeeding the filing of the  certif-
    3  ication  by  the  owner. A copy of such order shall be mailed by regular
    4  and  certified  mail, return receipt requested, to the tenant or tenants
    5  and a copy thereof shall be mailed to the owner.
    6    1.  In the event that the tenant or tenants either fail to return  the
    7  completed  certification  to the owner on or before the date required by
    8  subdivision (b) of this section or the owner disputes the  certification
    9  returned  by  the  tenant  or  tenants, the owner may, on or before June
   10  thirtieth of such year, petition  the  state  division  of  housing  and
   11  community  renewal  to  verify, pursuant to section one hundred seventy-
   12  one-b of the tax law, whether the total annual income exceeds {two}  ONE
   13  hundred {fifty} SEVENTY-FIVE thousand dollars in each of the two preced-
   14  ing  calendar years. Within twenty days after the filing of such request
   15  with the division, the division shall notify the tenant or tenants  that
   16  such  tenant  or tenants must provide the division with such information
   17  as the division and the department of taxation and finance shall require
   18  to verify whether the total annual  income  exceeds  {two}  ONE  hundred
   19  {fifty}  SEVENTY-FIVE thousand dollars in each such year. The division`s
   20  notification shall require the tenant or tenants to provide the informa-
   21  tion to the division within sixty days of service upon  such  tenant  or
   22  tenants  and  shall include a warning in bold faced type that failure to
   23  respond will result in an order of decontrol being issued by  the  divi-
   24  sion for such housing accommodation.
   25    2. If the department of taxation and finance determines that the total
   26  annual  income  is  in  excess of {two} ONE hundred {fifty} SEVENTY-FIVE
   27  thousand dollars in each of the two preceding calendar years, the  divi-
   28  sion  shall,  on  or  before November fifteenth of such year, notify the
   29  owner and tenants of the results of such verification.   Both the  owner
   30  and  the  tenants shall have thirty days within which to comment on such
   31  verification results. Within forty-five days after the expiration of the
   32  comment period, the division shall, where appropriate, issue an order of
   33  decontrol providing that such housing accommodation shall not be subject
   34  to the provisions of this law as of the first day of March in  the  year
   35  next  succeeding the filing of the owner`s petition with the division. A
   36  copy of such order shall be mailed by regular and certified mail, return
   37  receipt requested, to the tenant or tenants and a copy thereof shall  be
   38  sent to the owner.
   39    S  14.  Section 26-504.1 of the administrative code of the city of New
   40  York, as amended by local law number 4 of the city of New York  for  the
   41  year 1994, is amended to read as follows:
   42    S  26-504.1  Exclusion of accommodations of high income renters.  Upon
   43  the issuance of an order by the division, "housing accommodations" shall
   44  not include housing accommodations which: (1) are  occupied  by  persons
   45  who  have  a  total annual income in excess of {two} ONE hundred {fifty}
   46  SEVENTY-FIVE thousand dollars per annum for each of  the  two  preceding
   47  calendar years, as defined in and subject to the limitations and process
   48  set  forth  in  section  26-504.3  of this chapter; and (2) have a legal
   49  regulated rent of two thousand dollars or more  per  month.    Provided,
   50  however,  that  this exclusion shall not apply to housing accommodations
   51  which became or become subject to this law (a) by  virtue  of  receiving
   52  tax  benefits  pursuant  to  section  four  hundred twenty-one-a or four
   53  hundred eighty-nine of the real property tax law,  except  as  otherwise
   54  provided  in  subparagraph  (i)  of  paragraph (f) of subdivision two of
   55  section four hundred twenty-one-a of the real property tax law,  or  (b)
   56  by virtue of article seven-C of the multiple dwelling law.

       S. 5553                            10                            A. 8346

    1    S  15.  Section 26-504.2 of the administrative code of the city of New
    2  York, as amended by local law number 13 of the city of New York for  the
    3  year 1997, is amended to read as follows:
    4    S  26-504.2  Exclusion  of  high  rent accommodations.   {a.} "Housing
    5  accommodations"  shall  not  include  any  housing  accommodation  which
    6  becomes  vacant  on  or after April first, nineteen hundred ninety-seven
    7  and where at the time the tenant vacated such housing accommodation  the
    8  legal  regulated rent was two thousand dollars or more per month, OR ANY
    9  HOUSING ACCOMMODATION WHICH IS OR BECOMES VACANT ON OR AFTER THE  EFFEC-
   10  TIVE  DATE  OF THE RENT REGULATION REFORM ACT OF 1997 WITH A LEGAL REGU-
   11  LATED RENT OF TWO THOUSAND DOLLARS OR MORE PER MONTH.  Provided however,
   12  that this exclusion shall not  apply  to  housing  accommodations  which
   13  became  or  become  subject  to  this law (a) by virtue of receiving tax
   14  benefits pursuant to section four hundred twenty-one-a or  four  hundred
   15  eighty-nine  of  the real property tax law, except as otherwise provided
   16  in subparagraph (i) of paragraph (f) of subdivision two of section  four
   17  hundred  twenty-one-a  of the real property tax law, or (b) by virtue of
   18  article seven-C of the multiple dwelling law.  This  section  shall  not
   19  apply,  however, to or become effective with respect to housing accommo-
   20  dations which the commissioner determines or finds that the landlord  or
   21  any  person acting on his or her behalf, with intent to cause the tenant
   22  to vacate, engaged in any course of conduct (including, but not  limited
   23  to, interruption or discontinuance of required services) which interfer-
   24  ed  with  or  disturbed or was intended to interfere with or disturb the
   25  comfort, repose, peace or quiet of the tenant in his or her use or occu-
   26  pancy of the housing accommodations and in connection with  such  course
   27  of  conduct,  any  other general enforcement provision of this law shall
   28  also apply.
   29    {b. The owner of any housing accommodation that is not subject to this
   30  law pursuant to the provisions of  subdivision  a  of  this  section  or
   31  subparagraph k of paragraph 2 of subdivision e of section 26-403 of this
   32  code  shall  give  certified  written notice to the first tenant of that
   33  housing accommodation after such  housing  accommodation  became  exempt
   34  from  the provisions of this law or the city rent and rehabilitation law
   35  which contains a statement that the legal regulated rent or maximum rent
   36  may be verified by the tenant by contacting the state division of  hous-
   37  ing  and community renewal or any successor thereto, and the address and
   38  telephone number of such agency, or any successor thereto,  attached  to
   39  which  shall  be a certified copy of the last registration statement for
   40  such housing accommodation or the document most recently filed with  the
   41  state  division  of  housing  and community renewal which sets forth the
   42  maximum rent for such housing accommodation. Such notice shall  be  sent
   43  by certified mail within thirty days after such tenancy commences.}
   44    S  16.    Subdivision (b) and paragraphs 1 and 2 of subdivision (c) of
   45  section 26-504.3 of the administrative code of the  city  of  New  York,
   46  subdivision (b) as amended by local law number 4 of the city of New York
   47  for  the year 1994 and paragraphs 1 and 2 of subdivision (c) as added by
   48  chapter 253 of the laws of 1993, are amended to read as follows:
   49    (b) On or before the first day of May in each calendar year, the owner
   50  of each housing accommodation for which the legal regulated rent is  two
   51  thousand  dollars  or  more  per month may provide the tenant or tenants
   52  residing therein with an income certification form prepared by the divi-
   53  sion of housing and community renewal on which such  tenant  or  tenants
   54  shall  identify  all  persons  referred  to  in  subdivision (a) of this
   55  section and shall certify whether the total annual income is  in  excess
   56  of  {two}  ONE  hundred {fifty} SEVENTY-FIVE thousand dollars in each of

       S. 5553                            11                            A. 8346

    1  the two preceding calendar years. Such income certification  form  shall
    2  state that the income level certified to by the tenant may be subject to
    3  verification  by  the  department  of  taxation  and finance pursuant to
    4  section  one  hundred seventy-one-b of the tax law and shall not require
    5  disclosure of any income information other than  whether  the  aforemen-
    6  tioned  threshold  has  been  exceeded.   Such income certification form
    7  shall clearly state that: (i) only tenants residing in housing  accommo-
    8  dations  which  have  a  legal regulated rent of two thousand dollars or
    9  more per month are required to complete  the  certification  form;  (ii)
   10  that  tenants  have  protections available to them which are designed to
   11  prevent harassment; (iii) that tenants are not required to  provide  any
   12  information regarding their income except that which is requested on the
   13  form and may contain such other information the division deems appropri-
   14  ate.  The  tenant or tenants shall return the completed certification to
   15  the owner within thirty days after service upon the tenant  or  tenants.
   16  In  the  event that the total annual income as certified is in excess of
   17  {two} ONE hundred {fifty} SEVENTY-FIVE thousand  dollars  in  each  such
   18  year,  the  owner  may file the certification with the state division of
   19  housing and community renewal on or before June thirtieth of such  year.
   20  Upon  filing  such  certification with the division, the division shall,
   21  within thirty days after the filing, issue an order providing that  such
   22  housing accommodation shall not be subject to the provisions of this act
   23  upon the expiration of the existing lease. A copy of such order shall be
   24  mailed  by  regular and certified mail, return receipt requested, to the
   25  tenant or tenants and a copy thereof shall be mailed to the owner.
   26    1.  In the event that the tenant or tenants either fail to return  the
   27  completed  certification  to the owner on or before the date required by
   28  subdivision (b) of this section or the owner disputes the  certification
   29  returned  by  the  tenant  or  tenants, the owner may, on or before June
   30  thirtieth of such year, petition  the  state  division  of  housing  and
   31  community  renewal  to  verify, pursuant to section one hundred seventy-
   32  one-b of the tax law, whether the total annual income exceeds {two}  ONE
   33  hundred {fifty} SEVENTY-FIVE thousand dollars in each of the two preced-
   34  ing  calendar years. Within twenty days after the filing of such request
   35  with the division, the division shall notify the tenant or tenants named
   36  on the lease that such tenant or tenants must provide the division  with
   37  such  information  as  the  division  and the department of taxation and
   38  finance shall require to verify whether the total annual income  exceeds
   39  {two}  ONE  hundred  {fifty}  SEVENTY-FIVE thousand dollars in each such
   40  year. The division`s notification shall require the tenant or tenants to
   41  provide the information to the division within  sixty  days  of  service
   42  upon  such  tenant  or tenants and shall include a warning in bold faced
   43  type that failure to respond will result in an order being issued by the
   44  division providing that such housing accommodation shall not be  subject
   45  to the provisions of this law.
   46    2.    If  the  department  of taxation and finance determines that the
   47  total  annual  income  is  in  excess  of  {two}  ONE  hundred   {fifty}
   48  SEVENTY-FIVE  thousand  dollars  in  each  of the two preceding calendar
   49  years, the division shall, on or before November fifteenth of such year,
   50  notify the owner and tenants of the results of such  verification.  Both
   51  the owner and the tenants shall have thirty days within which to comment
   52  on  such verification results.  Within forty-five days after the expira-
   53  tion of the comment period, the division shall, where appropriate, issue
   54  an order providing that such housing accommodation shall not be  subject
   55  to the provisions of this law upon the expiration of the existing lease.
   56  A  copy  of  such  order  shall be mailed by regular and certified mail,

       S. 5553                            12                            A. 8346

    1  return receipt requested, to the tenant or tenants and  a  copy  thereof
    2  shall be sent to the owner.
    3    S  17.  Subdivision  d of section 26-513 of the administrative code of
    4  the city of New York, as amended by local law number 13 of the  city  of
    5  New York for the year 1997, is amended to read as follows:
    6    d.  Within thirty days after the local effective date of the emergency
    7  tenant protection act of nineteen  seventy-four  the  owner  of  housing
    8  accommodations  as to which an application for adjustment of the initial
    9  legal regulated rent may be made  pursuant  to  subdivision  b  of  this
   10  section  shall give notice in writing by certified mail to the tenant of
   11  each such housing accommodation on a form prescribed by the commissioner
   12  of the initial legal regulated rent for such housing accommodation{, the
   13  maximum rent at the time such housing accommodation became  vacant}  and
   14  of  such  tenant`s  right  to  file an application for adjustment of the
   15  initial legal regulated rent of such housing accommodation.
   16    S 17-a.  Section 26-403.1 of the administrative code of  the  city  of
   17  New York is amended by adding a new subdivision (e) to read as follows:
   18    (E)  UPON RECEIPT OF SUCH ORDER OF DECONTROL PURSUANT TO THIS SECTION,
   19  AN OWNER SHALL OFFER THE HOUSING ACCOMMODATION SUBJECT TO SUCH ORDER  TO
   20  THE  TENANT  AT  A  RENT NOT IN EXCESS OF THE MARKET RENT, WHICH FOR THE
   21  PURPOSES OF THIS SECTION MEANS A RENT  OBTAINABLE  IN  AN  ARM`S  LENGTH
   22  TRANSACTION.  SUCH RENTAL OFFER SHALL BE MADE BY THE OWNER IN WRITING TO
   23  THE TENANT BY CERTIFIED AND REGULAR MAIL AND  SHALL  INFORM  THE  TENANT
   24  THAT  SUCH OFFER MUST BE ACCEPTED IN WRITING WITHIN TEN DAYS OF RECEIPT.
   25  THE TENANT SHALL RESPOND WITHIN TEN DAYS AFTER RECEIPT OF SUCH OFFER. IF
   26  THE TENANT DECLINES THE OFFER OR FAILS TO RESPOND  WITHIN  SUCH  PERIOD,
   27  THE  OWNER MAY COMMENCE AN ACTION OR PROCEEDING FOR THE EVICTION OF SUCH
   28  TENANT.
   29    S 17-b. Section 26-504.3 of the administrative code of the city of New
   30  York is amended by adding a new subdivision (e) to read as follows:
   31    (E) UPON RECEIPT OF SUCH ORDER OF DECONTROL PURSUANT TO THIS  SECTION,
   32  AN  OWNER SHALL OFFER THE HOUSING ACCOMMODATION SUBJECT TO SUCH ORDER TO
   33  THE TENANT AT A RENT NOT IN EXCESS OF THE MARKET  RENT,  WHICH  FOR  THE
   34  PURPOSES  OF  THIS  SECTION  MEANS  A RENT OBTAINABLE IN AN ARM`S LENGTH
   35  TRANSACTION. SUCH RENTAL OFFER SHALL BE MADE BY THE OWNER IN WRITING  TO
   36  THE  TENANT  BY  CERTIFIED  AND REGULAR MAIL AND SHALL INFORM THE TENANT
   37  THAT SUCH OFFER MUST BE ACCEPTED IN WRITING WITHIN TEN DAYS OF  RECEIPT.
   38  THE TENANT SHALL RESPOND WITHIN TEN DAYS AFTER RECEIPT OF SUCH OFFER. IF
   39  THE  TENANT  DECLINES  THE OFFER OR FAILS TO RESPOND WITHIN SUCH PERIOD,
   40  THE OWNER MAY COMMENCE AN ACTION OR PROCEEDING FOR THE EVICTION OF  SUCH
   41  TENANT.
   42    S  17-c.  Section 5-a of section 4 of chapter 576 of the laws of 1974,
   43  constituting the emergency tenant protection act  of  nineteen  seventy-
   44  four, is amended by adding a new subdivision (e) to read as follows:
   45    (E)  UPON RECEIPT OF SUCH ORDER OF DECONTROL PURSUANT TO THIS SECTION,
   46  AN OWNER SHALL OFFER THE HOUSING ACCOMMODATION SUBJECT TO SUCH ORDER  TO
   47  THE  TENANT  AT  A  RENT NOT IN EXCESS OF THE MARKET RENT, WHICH FOR THE
   48  PURPOSES OF THIS SECTION MEANS A RENT  OBTAINABLE  IN  AN  ARM`S  LENGTH
   49  TRANSACTION.  SUCH RENTAL OFFER SHALL BE MADE BY THE OWNER IN WRITING TO
   50  THE TENANT BY CERTIFIED AND REGULAR MAIL AND  SHALL  INFORM  THE  TENANT
   51  THAT  SUCH OFFER MUST BE ACCEPTED IN WRITING WITHIN TEN DAYS OF RECEIPT.
   52  THE TENANT SHALL RESPOND WITHIN TEN DAYS AFTER RECEIPT OF SUCH OFFER. IF
   53  THE TENANT DECLINES THE OFFER OR FAILS TO RESPOND  WITHIN  SUCH  PERIOD,
   54  THE  OWNER MAY COMMENCE AN ACTION OR PROCEEDING FOR THE EVICTION OF SUCH
   55  TENANT.

       S. 5553                            13                            A. 8346

    1    S 17-d. Section 2-a of chapter 274 of the laws of  1946,  constituting
    2  the  emergency  housing  rent  control  law,  is amended by adding a new
    3  subdivision (e) to read as follows:
    4    (E)  UPON RECEIPT OF SUCH ORDER OF DECONTROL PURSUANT TO THIS SECTION,
    5  AN OWNER SHALL OFFER THE HOUSING ACCOMMODATION SUBJECT TO SUCH ORDER  TO
    6  THE  TENANT  AT  A  RENT NOT IN EXCESS OF THE MARKET RENT, WHICH FOR THE
    7  PURPOSES OF THIS SECTION MEANS A RENT  OBTAINABLE  IN  AN  ARM`S  LENGTH
    8  TRANSACTION.  SUCH RENTAL OFFER SHALL BE MADE BY THE OWNER IN WRITING TO
    9  THE TENANT BY CERTIFIED AND REGULAR MAIL AND  SHALL  INFORM  THE  TENANT
   10  THAT  SUCH OFFER MUST BE ACCEPTED IN WRITING WITHIN TEN DAYS OF RECEIPT.
   11  THE TENANT SHALL RESPOND WITHIN TEN DAYS AFTER RECEIPT OF SUCH OFFER. IF
   12  THE TENANT DECLINES THE OFFER OR FAILS TO RESPOND  WITHIN  SUCH  PERIOD,
   13  THE  OWNER MAY COMMENCE AN ACTION OR PROCEEDING FOR THE EVICTION OF SUCH
   14  TENANT.
   15    S 18.  Paragraph (b) of subdivision 3 of section 171-b of the tax law,
   16  as amended by chapter 170 of the laws of 1994, is  amended  to  read  as
   17  follows:
   18    (b)    The  department,  when requested by the division of housing and
   19  community renewal, shall verify the total annual income of  all  persons
   20  residing in housing accommodations as their primary residence subject to
   21  rent  regulation  and  shall  notify the commissioner of the division of
   22  housing and community renewal as may be appropriate  whether  the  total
   23  annual  income  exceeds  {two} ONE hundred {fifty} SEVENTY-FIVE thousand
   24  dollars per annum in each of the two preceding calendar years.  No other
   25  information regarding  the  annual  income  of  such  persons  shall  be
   26  provided.
   27    S  19.  Subdivision  c of section 26-511 of the administrative code of
   28  the city of New York is amended by adding a new paragraph 5-a to read as
   29  follows:
   30    (5-A) PROVIDES THAT, NOTWITHSTANDING ANY PROVISION  OF  THIS  CHAPTER,
   31  THE  LEGAL  REGULATED  RENT FOR ANY VACANCY LEASE ENTERED INTO AFTER THE
   32  EFFECTIVE DATE OF THIS PARAGRAPH SHALL BE  AS  HEREINAFTER  PROVIDED  IN
   33  THIS  PARAGRAPH.  THE  PREVIOUS  LEGAL  REGULATED  RENT FOR SUCH HOUSING
   34  ACCOMMODATION SHALL BE INCREASED BY THE FOLLOWING: (I)  IF  THE  VACANCY
   35  LEASE  IS  FOR A TERM OF TWO YEARS, TWENTY PERCENT OF THE PREVIOUS LEGAL
   36  REGULATED RENT; OR (II) IF THE VACANCY LEASE IS FOR A TERM OF  ONE  YEAR
   37  THE  INCREASE  SHALL  BE  TWENTY PERCENT OF THE PREVIOUS LEGAL REGULATED
   38  RENT LESS AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN  (A)  THE  TWO  YEAR
   39  RENEWAL  LEASE GUIDELINE PROMULGATED BY THE GUIDELINES BOARD OF THE CITY
   40  OF NEW YORK APPLIED TO THE PREVIOUS LEGAL REGULATED RENT AND (B) THE ONE
   41  YEAR RENEWAL LEASE GUIDELINE PROMULGATED BY THE GUIDELINES BOARD OF  THE
   42  CITY  OF NEW YORK APPLIED TO THE PREVIOUS LEGAL REGULATED RENT. IN ADDI-
   43  TION, IF THE LEGAL REGULATED RENT WAS NOT INCREASED WITH RESPECT TO SUCH
   44  HOUSING ACCOMMODATION BY A  PERMANENT  VACANCY  ALLOWANCE  WITHIN  EIGHT
   45  YEARS  PRIOR  TO A VACANCY LEASE EXECUTED ON OR AFTER THE EFFECTIVE DATE
   46  OF THIS PARAGRAPH, THE LEGAL REGULATED RENT MAY BE FURTHER INCREASED  BY
   47  AN  AMOUNT EQUAL TO THE PRODUCT RESULTING FROM MULTIPLYING SUCH PREVIOUS
   48  LEGAL REGULATED RENT BY SIX-TENTHS OF ONE PERCENT AND FURTHER  MULTIPLY-
   49  ING  THE  AMOUNT  OF RENT INCREASE RESULTING THEREFROM BY THE GREATER OF
   50  (A) THE NUMBER OF YEARS SINCE  THE  IMPOSITION  OF  THE  LAST  PERMANENT
   51  VACANCY  ALLOWANCE,  OR (B) IF THE RENT WAS NOT INCREASED BY A PERMANENT
   52  VACANCY ALLOWANCE SINCE THE HOUSING ACCOMMODATION BECAME SUBJECT TO THIS
   53  CHAPTER, THE NUMBER OF YEARS THAT SUCH HOUSING  ACCOMMODATION  HAS  BEEN
   54  SUBJECT  TO  THIS CHAPTER. PROVIDED THAT IF THE PREVIOUS LEGAL REGULATED
   55  RENT WAS LESS THAN THREE HUNDRED DOLLARS THE TOTAL INCREASE SHALL BE  AS
   56  CALCULATED  ABOVE PLUS ONE HUNDRED DOLLARS PER MONTH. PROVIDED, FURTHER,

       S. 5553                            14                            A. 8346

    1  THAT IF THE PREVIOUS LEGAL REGULATED RENT WAS  AT  LEAST  THREE  HUNDRED
    2  DOLLARS  AND  NO  MORE  THAN  FIVE HUNDRED DOLLARS IN NO EVENT SHALL THE
    3  TOTAL INCREASE PURSUANT TO THIS  PARAGRAPH  BE  LESS  THAN  ONE  HUNDRED
    4  DOLLARS  PER  MONTH.  SUCH  INCREASE  SHALL  BE IN LIEU OF ANY ALLOWANCE
    5  AUTHORIZED FOR THE ONE OR TWO YEAR RENEWAL COMPONENT THEREOF, BUT  SHALL
    6  BE  IN ADDITION TO ANY OTHER INCREASES AUTHORIZED PURSUANT TO THIS CHAP-
    7  TER INCLUDING AN ADJUSTMENT BASED UPON A MAJOR CAPITAL IMPROVEMENT, OR A
    8  SUBSTANTIAL MODIFICATION OR INCREASE OF DWELLING SPACE OR  SERVICES,  OR
    9  INSTALLATION  OF  NEW  EQUIPMENT  OR  IMPROVEMENTS  OR  NEW FURNITURE OR
   10  FURNISHINGS PROVIDED IN OR TO THE HOUSING ACCOMMODATION PURSUANT TO THIS
   11  SECTION.
   12    S 20. Section 10 of section 4 of chapter 576  of  the  laws  of  1974,
   13  constituting  the  emergency  tenant protection act of nineteen seventy-
   14  four, is amended by adding a new subdivision (a-1) to read as follows:
   15    (A-1) PROVIDES THAT, NOTWITHSTANDING ANY PROVISION OF  THIS  ACT,  THE
   16  LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED INTO AFTER THE EFFEC-
   17  TIVE  DATE  OF  THIS SUBDIVISION SHALL BE AS HEREINAFTER SET FORTH.  THE
   18  PREVIOUS LEGAL REGULATED RENT FOR SUCH HOUSING  ACCOMMODATION  SHALL  BE
   19  INCREASED  BY  THE  FOLLOWING: (I) IF THE VACANCY LEASE IS FOR A TERM OF
   20  TWO YEARS, TWENTY PERCENT OF THE PREVIOUS LEGAL REGULATED RENT; OR  (II)
   21  IF  THE  VACANCY  LEASE  IS FOR A TERM OF ONE YEAR THE INCREASE SHALL BE
   22  TWENTY PERCENT OF THE PREVIOUS LEGAL REGULATED RENT LESS AN AMOUNT EQUAL
   23  TO THE DIFFERENCE BETWEEN (A)  THE  TWO  YEAR  RENEWAL  LEASE  GUIDELINE
   24  PROMULGATED  BY  THE GUIDELINES BOARD OF THE COUNTY IN WHICH THE HOUSING
   25  ACCOMMODATION IS LOCATED APPLIED TO THE PREVIOUS  LEGAL  REGULATED  RENT
   26  AND  (B)  THE ONE YEAR RENEWAL LEASE GUIDELINE PROMULGATED BY THE GUIDE-
   27  LINES BOARD OF THE COUNTY IN WHICH THE HOUSING ACCOMMODATION IS  LOCATED
   28  APPLIED  TO THE PREVIOUS LEGAL REGULATED RENT. IN ADDITION, IF THE LEGAL
   29  REGULATED RENT WAS NOT INCREASED WITH RESPECT TO SUCH  HOUSING  ACCOMMO-
   30  DATION  BY  A  PERMANENT VACANCY ALLOWANCE WITHIN EIGHT YEARS PRIOR TO A
   31  VACANCY LEASE EXECUTED ON OR AFTER THE EFFECTIVE DATE OF  THIS  SUBDIVI-
   32  SION,  THE  LEGAL  REGULATED  RENT MAY BE FURTHER INCREASED BY AN AMOUNT
   33  EQUAL TO THE PRODUCT RESULTING  FROM  MULTIPLYING  SUCH  PREVIOUS  LEGAL
   34  REGULATED  RENT BY SIX-TENTHS OF ONE PERCENT AND FURTHER MULTIPLYING THE
   35  AMOUNT OF RENT INCREASE RESULTING THEREFROM BY THE GREATER  OF  (A)  THE
   36  NUMBER  OF  YEARS  SINCE  THE  IMPOSITION  OF THE LAST PERMANENT VACANCY
   37  ALLOWANCE, OR (B) IF THE RENT WAS NOT INCREASED BY A  PERMANENT  VACANCY
   38  ALLOWANCE  SINCE  THE  HOUSING ACCOMMODATION BECAME SUBJECT TO THIS ACT,
   39  THE NUMBER OF YEARS THAT SUCH HOUSING ACCOMMODATION HAS BEEN SUBJECT  TO
   40  THIS  ACT.  PROVIDED  THAT IF THE PREVIOUS LEGAL REGULATED RENT WAS LESS
   41  THAN THREE HUNDRED DOLLARS THE TOTAL INCREASE  SHALL  BE  AS  CALCULATED
   42  ABOVE PLUS ONE HUNDRED DOLLARS PER MONTH. PROVIDED, FURTHER, THAT IF THE
   43  PREVIOUS  LEGAL REGULATED RENT WAS AT LEAST THREE HUNDRED DOLLARS AND NO
   44  MORE THAN FIVE HUNDRED DOLLARS IN NO  EVENT  SHALL  THE  TOTAL  INCREASE
   45  PURSUANT TO THIS SUBDIVISION BE LESS THAN ONE HUNDRED DOLLARS PER MONTH.
   46  SUCH  INCREASE  SHALL BE IN LIEU OF ANY ALLOWANCE AUTHORIZED FOR THE ONE
   47  OR TWO YEAR RENEWAL COMPONENT THEREOF, BUT SHALL BE IN ADDITION  TO  ANY
   48  OTHER  INCREASES AUTHORIZED PURSUANT TO THIS ACT INCLUDING AN ADJUSTMENT
   49  BASED UPON A MAJOR CAPITAL IMPROVEMENT, OR A SUBSTANTIAL MODIFICATION OR
   50  INCREASE OF DWELLING SPACE OR SERVICES, OR INSTALLATION OF NEW EQUIPMENT
   51  OR IMPROVEMENTS OR NEW FURNITURE OR FURNISHINGS PROVIDED IN  OR  TO  THE
   52  HOUSING ACCOMMODATION PURSUANT TO SECTION SIX OF THIS ACT.
   53    S  21. Section 14 of the public housing law is amended by adding a new
   54  subdivision 4 to read as follows:
   55    4. THE AGENCY SHALL PROMULGATE REGULATIONS, RULES AND  POLICIES  WHICH
   56  PROVIDE  FOR THE RIGHTS OF FAMILY MEMBERS TO SUCCEED IN CERTAIN CASES TO

       S. 5553                            15                            A. 8346

    1  THE RIGHTS OF TENANTS PROTECTED BY THE EMERGENCY TENANT  PROTECTION  ACT
    2  OF  NINETEEN  SEVENTY-FOUR,  THE EMERGENCY HOUSING RENT CONTROL LAW, THE
    3  LOCAL EMERGENCY HOUSING RENT CONTROL ACT, THE ADMINISTRATIVE CODE OF THE
    4  CITY  OF NEW YORK AND ANY REGULATIONS, RULES AND POLICIES ENACTED PURSU-
    5  ANT  THERETO.  SUCH  REGULATIONS,  RULES  AND  POLICIES  SHALL   CONTAIN
    6  PROVISIONS WHICH INCLUDE, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING:
    7    (A)  THAT  UNLESS OTHERWISE PROHIBITED BY OCCUPANCY RESTRICTIONS BASED
    8  UPON INCOME LIMITATIONS PURSUANT TO FEDERAL, STATE OR LOCAL  LAW,  REGU-
    9  LATIONS  OR  OTHER  REQUIREMENTS OF GOVERNMENTAL AGENCIES, ANY MEMBER OF
   10  THE TENANT`S FAMILY, AS DEFINED IN PARAGRAPH (C)  OF  THIS  SUBDIVISION,
   11  SHALL  SUCCEED  TO THE RIGHTS OF A TENANT UNDER SUCH ACTS AND LAWS WHERE
   12  THE TENANT HAS PERMANENTLY VACATED THE HOUSING  ACCOMMODATION  AND  SUCH
   13  FAMILY  MEMBER  HAS RESIDED WITH THE TENANT IN THE HOUSING ACCOMMODATION
   14  AS A PRIMARY RESIDENCE FOR A PERIOD OF NO LESS THAN TWO YEARS, OR  WHERE
   15  SUCH  PERSON IS A "SENIOR CITIZEN" OR A "DISABLED PERSON," AS DEFINED IN
   16  PARAGRAPH (C) OF THIS SUBDIVISION, FOR A PERIOD  OF  NO  LESS  THAN  ONE
   17  YEAR,  IMMEDIATELY PRIOR TO THE PERMANENT VACATING OF THE HOUSING ACCOM-
   18  MODATION BY THE  TENANT,  OR  FROM  THE  INCEPTION  OF  THE  TENANCY  OR
   19  COMMENCEMENT  OF  THE  RELATIONSHIP, IF FOR LESS THAN SUCH PERIODS.  THE
   20  MINIMUM PERIODS OF REQUIRED RESIDENCY  SET  FORTH  IN  THIS  SUBDIVISION
   21  SHALL  NOT  BE  DEEMED  TO BE INTERRUPTED BY ANY PERIOD DURING WHICH THE
   22  "FAMILY MEMBER" TEMPORARILY RELOCATES BECAUSE HE OR SHE:
   23    (I) IS ENGAGED IN ACTIVE MILITARY DUTY;
   24    (II) IS ENROLLED AS A FULL TIME STUDENT;
   25    (III) IS NOT IN RESIDENCE AT THE HOUSING ACCOMMODATION PURSUANT  TO  A
   26  COURT  ORDER  NOT  INVOLVING ANY TERM OR PROVISION OF THE LEASE, AND NOT
   27  INVOLVING ANY  GROUNDS  SPECIFIED  IN  THE  REAL  PROPERTY  ACTIONS  AND
   28  PROCEEDINGS LAW;
   29    (IV)  IS ENGAGED IN EMPLOYMENT REQUIRING TEMPORARY RELOCATION FROM THE
   30  HOUSING ACCOMMODATION;
   31    (V) IS HOSPITALIZED FOR MEDICAL TREATMENT; OR
   32    (VI) HAS SUCH OTHER REASONABLE GROUNDS THAT SHALL BE DETERMINED BY THE
   33  COMMISSIONER UPON APPLICATION BY SUCH PERSON.
   34    (B) THAT A TENANT MAY IN A FORM PRESCRIBED BY THE DIVISION OF  HOUSING
   35  AND  COMMUNITY  RENEWAL, AT ANY TIME, ADVISE THE LANDLORD OF, OR A LAND-
   36  LORD MAY AT ANY TIME BUT NO MORE OFTEN THAN ONCE IN ANY  TWELVE  MONTHS,
   37  REQUEST  FROM THE TENANT, THE NAMES OF ALL PERSONS OTHER THAN THE TENANT
   38  WHO ARE RESIDING IN THE HOUSING ACCOMMODATION, AND THE FOLLOWING  INFOR-
   39  MATION PERTAINING TO SUCH PERSONS:
   40    (I)  IF THE PERSON IS A "FAMILY MEMBER" AS DEFINED IN PARAGRAPH (C) OF
   41  THIS SUBDIVISION; AND
   42    (II) IF THE PERSON IS, OR UPON THE PASSAGE OF THE  APPLICABLE  MINIMUM
   43  PERIOD  OF  REQUIRED RESIDENCY, MAY BECOME A PERSON ENTITLED TO BE NAMED
   44  AS A TENANT ON A RENEWAL LEASE OR TO PROTECTION FROM  EVICTION  PURSUANT
   45  TO  PARAGRAPH  (A) OF THIS SUBDIVISION, AND THE DATE OF THE COMMENCEMENT
   46  OF SUCH PERSON`S PRIMARY RESIDENCE WITH THE TENANT; AND
   47    (III) IF THE PERSON IS A "SENIOR CITIZEN" OR A  "DISABLED  PERSON"  AS
   48  DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION.
   49    FAILURE  OF  THE  TENANT  TO PROVIDE SUCH INFORMATION TO THE LANDLORD,
   50  REGARDLESS OF WHETHER THE LANDLORD REQUESTS THE INFORMATION, SHALL PLACE
   51  UPON ALL SUCH PERSONS NOT SO MADE KNOWN TO THE  LANDLORD,  WHO  SEEK  TO
   52  EXERCISE  THE  RIGHT  TO  BE NAMED AS A TENANT ON A RENEWAL LEASE OR THE
   53  RIGHT TO PROTECTION FROM EVICTION AS PROVIDED FOR IN  THIS  SUBDIVISION,
   54  THE AFFIRMATIVE OBLIGATION TO ESTABLISH SUCH RIGHT.
   55    (C)  THAT  FOR  THE  PURPOSES OF SUCH REGULATIONS: (I) "FAMILY MEMBER"
   56  SHALL BE DEFINED AS A HUSBAND, WIFE, SON, DAUGHTER, STEPSON, STEPDAUGHT-

       S. 5553                            16                            A. 8346

    1  ER, FATHER, MOTHER, STEPFATHER, STEPMOTHER,  BROTHER,  SISTER,  GRANDFA-
    2  THER, GRANDMOTHER, GRANDSON, GRANDDAUGHTER, DAUGHTER-IN-LAW, SON-IN-LAW,
    3  MOTHER-IN-LAW OR FATHER-IN-LAW OF THE TENANT; OR ANY OTHER PERSON RESID-
    4  ING  WITH THE TENANT IN THE HOUSING ACCOMMODATION AS A PRIMARY RESIDENCE
    5  WHO CAN PROVE EMOTIONAL AND FINANCIAL  COMMITMENT,  AND  INTERDEPENDENCE
    6  BETWEEN  SUCH PERSON AND THE TENANT.  ALTHOUGH NO SINGLE FACTOR SHALL BE
    7  SOLELY DETERMINATIVE, EVIDENCE WHICH IS TO BE CONSIDERED IN  DETERMINING
    8  WHETHER  SUCH  EMOTIONAL  AND  FINANCIAL  COMMITMENT AND INTERDEPENDENCE
    9  EXISTED, MAY INCLUDE, WITHOUT LIMITATION, SUCH FACTORS AS LISTED  BELOW.
   10  IN NO EVENT WOULD EVIDENCE OF A SEXUAL RELATIONSHIP BETWEEN SUCH PERSONS
   11  BE REQUIRED OR CONSIDERED.
   12    (A) LONGEVITY OF THE RELATIONSHIP;
   13    (B)  SHARING OF OR RELYING UPON EACH OTHER FOR PAYMENT OF HOUSEHOLD OR
   14  FAMILY EXPENSES, OR OTHER COMMON NECESSITIES OF LIFE;
   15    (C) INTERMINGLING OF FINANCES AS EVIDENCED  BY,  AMONG  OTHER  THINGS,
   16  JOINT  OWNERSHIP  OF  BANK  ACCOUNTS, PERSONAL AND REAL PROPERTY, CREDIT
   17  CARDS, LOAN OBLIGATIONS, SHARING A  HOUSEHOLD  BUDGET  FOR  PURPOSES  OF
   18  RECEIVING  GOVERNMENT  BENEFITS,  OR SUCH OTHER FACTORS AS MAY BE DETER-
   19  MINED BY REGULATION;
   20    (D) ENGAGING IN FAMILY-TYPE ACTIVITIES  BY  JOINTLY  ATTENDING  FAMILY
   21  FUNCTIONS,  HOLIDAYS  AND  CELEBRATIONS,  SOCIAL AND RECREATIONAL ACTIV-
   22  ITIES, OR SUCH OTHER FACTORS AS MAY BE DETERMINED BY REGULATION;
   23    (E) FORMALIZING OF LEGAL OBLIGATIONS, INTENTIONS, AND RESPONSIBILITIES
   24  TO EACH OTHER BY SUCH MEANS AS EXECUTING  WILLS  NAMING  EACH  OTHER  AS
   25  EXECUTOR  OR BENEFICIARY, CONFERRING UPON EACH OTHER A POWER OF ATTORNEY
   26  OR AUTHORITY TO MAKE HEALTH CARE DECISIONS EACH FOR THE OTHER,  ENTERING
   27  INTO  A  PERSONAL  RELATIONSHIP  CONTRACT, MAKING A DOMESTIC PARTNERSHIP
   28  DECLARATION, OR SERVING AS A REPRESENTATIVE PAYEE FOR PURPOSES OF PUBLIC
   29  BENEFITS, OR SUCH OTHER FACTORS AS MAY BE DETERMINED BY REGULATION;
   30    (F) HOLDING THEMSELVES OUT AS FAMILY MEMBERS TO OTHER FAMILY  MEMBERS,
   31  FRIENDS,  MEMBERS OF THE COMMUNITY OR RELIGIOUS INSTITUTIONS, OR SOCIETY
   32  IN GENERAL, THROUGH THEIR WORDS OR ACTIONS;
   33    (G) REGULARLY PERFORMING FAMILY FUNCTIONS, SUCH  AS  CARING  FOR  EACH
   34  OTHER  OR  EACH  OTHER`S  EXTENDED  FAMILY MEMBERS, OR RELYING UPON EACH
   35  OTHER FOR DAILY FAMILY SERVICES;
   36    (H) ENGAGING IN ANY OTHER PATTERN OF  BEHAVIOR,  AGREEMENT,  OR  OTHER
   37  ACTION WHICH EVIDENCES THE INTENTION OF CREATING A LONG-TERM, EMOTIONAL-
   38  LY-COMMITTED RELATIONSHIP.
   39    (II)  A "SENIOR CITIZEN" IS DEFINED AS A PERSON WHO IS SIXTY-TWO YEARS
   40  OF AGE OR OLDER;
   41    (III) A "DISABLED PERSON" IS DEFINED AS A PERSON WHO HAS AN IMPAIRMENT
   42  WHICH RESULTS FROM ANATOMICAL,  PHYSIOLOGICAL  OR  PSYCHOLOGICAL  CONDI-
   43  TIONS,  OTHER  THAN  ADDICTION  TO  ALCOHOL, GAMBLING, OR ANY CONTROLLED
   44  SUBSTANCE, WHICH ARE DEMONSTRABLE BY MEDICALLY ACCEPTABLE  CLINICAL  AND
   45  LABORATORY DIAGNOSTIC TECHNIQUES, AND WHICH ARE EXPECTED TO BE PERMANENT
   46  AND  WHICH  SUBSTANTIALLY  LIMIT ONE OR MORE OF SUCH PERSON`S MAJOR LIFE
   47  ACTIVITIES.
   48    (D) A PROCEDURE FOR MAINTAINING RECORDS FOR THE PURPOSE OF DETERMINING
   49  AN OWNER`S ENTITLEMENT TO THE VACANCY ALLOWANCE PROVIDED FOR IN SUBDIVI-
   50  SION F OF SECTION 26-512 OF THE ADMINISTRATIVE CODE OF THE CITY  OF  NEW
   51  YORK,  SUBDIVISION  G  OF  SECTION  SIX OF SECTION FOUR OF THE EMERGENCY
   52  TENANT PROTECTION ACT OF  NINETEEN  SEVENTY-FOUR,  SUBDIVISION  NINE  OF
   53  SECTION FIVE OF THE EMERGENCY HOUSING RENT CONTROL LAW, SECTION 26-403.2
   54  OF  THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK AND THE FIFTH UNDES-
   55  IGNATED PARAGRAPH OF SECTION ONE OF THE  LOCAL  EMERGENCY  HOUSING  RENT
   56  CONTROL ACT.

       S. 5553                            17                            A. 8346

    1    S  22.  Section  26-512  of the administrative code of the city of New
    2  York is amended by adding a new subdivision f to read as follows:
    3    F.  NOTWITHSTANDING  ANY  PROVISION OF THIS LAW TO THE CONTRARY IN THE
    4  CASE WHERE ALL TENANTS NAMED IN A LEASE HAVE PERMANENTLY VACATED A HOUS-
    5  ING ACCOMMODATION AND A FAMILY MEMBER OF SUCH TENANT OR TENANTS IS ENTI-
    6  TLED TO AND EXECUTES A RENEWAL LEASE FOR THE  HOUSING  ACCOMMODATION  IF
    7  SUCH ACCOMMODATION CONTINUES TO BE SUBJECT TO THIS LAW AFTER SUCH FAMILY
    8  MEMBER  VACATES,  ON  THE OCCURRENCE OF SUCH VACANCY THE LEGAL REGULATED
    9  RENT SHALL BE INCREASED BY A SUM EQUAL TO THE ALLOWANCE THEN  IN  EFFECT
   10  FOR  VACANCY  LEASES, INCLUDING THE AMOUNT ALLOWED BY PARAGRAPH (FIVE-A)
   11  OF SUBDIVISION C OF SECTION 26-511 OF THIS LAW.  SUCH INCREASE SHALL  BE
   12  IN ADDITION TO ANY OTHER INCREASES PROVIDED FOR IN THIS LAW INCLUDING AN
   13  ADJUSTMENT  BASED  UPON  A  MAJOR  CAPITAL IMPROVEMENT, OR A SUBSTANTIAL
   14  MODIFICATION OR INCREASE OF DWELLING SPACE OR SERVICES, OR  INSTALLATION
   15  OF  NEW  EQUIPMENT  OR  IMPROVEMENTS  OR  NEW  FURNITURE  OR FURNISHINGS
   16  PROVIDED IN OR TO THE HOUSING ACCOMMODATION PURSUANT TO  SECTION  26-511
   17  OF THIS LAW AND SHALL BE APPLICABLE IN LIKE MANNER TO EACH SECOND SUBSE-
   18  QUENT SUCCESSION.
   19    S  23.  Section  6  of  section  4 of chapter 576 of the laws of 1974,
   20  constituting the emergency tenant protection act  of  nineteen  seventy-
   21  four, is amended by adding a new subdivision g to read as follows:
   22    G.  NOTWITHSTANDING  ANY  PROVISION OF THIS ACT TO THE CONTRARY IN THE
   23  CASE WHERE ALL TENANTS NAMED IN A LEASE HAVE PERMANENTLY VACATED A HOUS-
   24  ING ACCOMMODATION AND A FAMILY MEMBER OF SUCH TENANT OR TENANTS IS ENTI-
   25  TLED TO AND EXECUTES A RENEWAL LEASE FOR THE  HOUSING  ACCOMMODATION  IF
   26  SUCH ACCOMMODATION CONTINUES TO BE SUBJECT TO THIS ACT AFTER SUCH FAMILY
   27  MEMBER  VACATES,  ON  THE OCCURRENCE OF SUCH VACANCY THE LEGAL REGULATED
   28  RENT SHALL BE INCREASED BY A SUM EQUAL TO THE ALLOWANCE THEN  IN  EFFECT
   29  FOR VACANCY LEASES, INCLUDING THE AMOUNT ALLOWED BY SUBDIVISION (A-1) OF
   30  SECTION  TEN  OF  THIS  ACT.   SUCH INCREASE SHALL BE IN ADDITION TO ANY
   31  OTHER INCREASES PROVIDED FOR IN THIS ACT INCLUDING AN  ADJUSTMENT  BASED
   32  UPON  A  MAJOR  CAPITAL  IMPROVEMENT,  OR  A SUBSTANTIAL MODIFICATION OR
   33  INCREASE OF DWELLING SPACE OR SERVICES, OR INSTALLATION OF NEW EQUIPMENT
   34  OR IMPROVEMENTS OR NEW FURNITURE OR FURNISHINGS PROVIDED IN  OR  TO  THE
   35  HOUSING  ACCOMMODATION, PURSUANT TO SECTION SIX OF THIS ACT AND SHALL BE
   36  APPLICABLE IN LIKE MANNER TO EACH SECOND SUBSEQUENT SUCCESSION.
   37    S 24. Section 5 of chapter 274 of the laws of 1946,  constituting  the
   38  emergency  housing rent control law, is amended by adding a new subdivi-
   39  sion 9 to read as follows:
   40    9. NOTWITHSTANDING ANY PROVISION OF THIS LAW TO THE  CONTRARY  IN  THE
   41  CASE WHERE ALL TENANTS OCCUPYING THE HOUSING ACCOMMODATION ON THE EFFEC-
   42  TIVE DATE OF THIS SUBDIVISION HAVE VACATED THE HOUSING ACCOMMODATION AND
   43  A  FAMILY  MEMBER  OF SUCH VACATING TENANT OR TENANTS IS ENTITLED TO AND
   44  CONTINUES TO OCCUPY THE HOUSING ACCOMMODATION SUBJECT TO THE PROTECTIONS
   45  OF THIS LAW, IF SUCH ACCOMMODATION CONTINUES TO BE SUBJECT TO  THIS  LAW
   46  AFTER  SUCH FAMILY MEMBER VACATES, ON THE OCCURRENCE OF SUCH VACANCY THE
   47  MAXIMUM COLLECTABLE RENT SHALL BE INCREASED BY A SUM EQUAL TO THE ALLOW-
   48  ANCE THEN IN  EFFECT  FOR  VACANCY  LEASES  FOR  HOUSING  ACCOMMODATIONS
   49  COVERED  BY  THE  RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE,
   50  INCLUDING THE AMOUNT ALLOWED BY PARAGRAPH FIVE-A  OF  SUBDIVISION  C  OF
   51  SECTION  26-511  OF  SUCH LAW. THIS INCREASE SHALL BE IN ADDITION TO ANY
   52  OTHER INCREASES PROVIDED IN THIS LAW INCLUDING AN ADJUSTMENT BASED  UPON
   53  A  MAJOR  CAPITAL  IMPROVEMENT, OR A SUBSTANTIAL INCREASE OR DECREASE IN
   54  DWELLING SPACE OR A CHANGE IN THE SERVICES,  FURNITURE,  FURNISHINGS  OR
   55  EQUIPMENT  PROVIDED  IN  THE  HOUSING ACCOMMODATION, PURSUANT TO SECTION

       S. 5553                            18                            A. 8346

    1  FOUR OF THIS LAW AND SHALL BE APPLICABLE IN LIKE MANNER TO  EACH  SECOND
    2  SUBSEQUENT SUCCESSION.
    3    S  25.  The  administrative code of the city of New York is amended by
    4  adding a new section 26-403.2 to read as follows:
    5     S 26-403.2 INCREASE IN MAXIMUM COLLECTABLE RENT.  NOTWITHSTANDING ANY
    6  PROVISION OF THIS LAW TO THE CONTRARY IN  THE  CASE  WHERE  ALL  TENANTS
    7  OCCUPYING  THE  HOUSING  ACCOMMODATION  ON  THE  EFFECTIVE  DATE OF THIS
    8  SECTION HAVE VACATED THE HOUSING ACCOMMODATION AND A  FAMILY  MEMBER  OF
    9  SUCH  VACATING  TENANT OR TENANTS IS ENTITLED TO AND CONTINUES TO OCCUPY
   10  THE HOUSING ACCOMMODATION SUBJECT TO THE PROTECTIONS  OF  THIS  LAW,  IF
   11  SUCH ACCOMMODATION CONTINUES TO BE SUBJECT TO THIS LAW AFTER SUCH FAMILY
   12  MEMBER  VACATES, ON THE OCCURRENCE OF SUCH VACANCY THE MAXIMUM COLLECTA-
   13  BLE RENT SHALL BE INCREASED BY A SUM EQUAL  TO  THE  ALLOWANCE  THEN  IN
   14  EFFECT FOR VACANCY LEASES FOR HOUSING ACCOMMODATIONS COVERED BY THE RENT
   15  STABILIZATION  LAW  OF NINETEEN HUNDRED SIXTY-NINE, INCLUDING THE AMOUNT
   16  ALLOWED BY PARAGRAPH FIVE-A OF SUBDIVISION C OF SECTION 26-511  OF  SUCH
   17  LAW.  THIS INCREASE SHALL BE IN ADDITION TO ANY OTHER INCREASES PROVIDED
   18  FOR  IN  THIS  LAW  INCLUDING  AN  ADJUSTMENT BASED UPON A MAJOR CAPITAL
   19  IMPROVEMENT, OR A SUBSTANTIAL INCREASE OR DECREASE IN DWELLING SPACE  OR
   20  A  CHANGE  IN THE SERVICES, FURNITURE, FURNISHINGS OR EQUIPMENT PROVIDED
   21  IN THE HOUSING ACCOMMODATION, PURSUANT TO SECTION 26-405 OF THIS LAW AND
   22  SHALL BE APPLICABLE IN LIKE MANNER TO EACH SECOND SUBSEQUENT SUCCESSION.
   23    S 26. Section 1 of chapter 21 of the laws of  1962,  constituting  the
   24  local  emergency  rent  control  act,  is  amended by adding a new fifth
   25  undesignated paragraph to read as follows:
   26    NOTWITHSTANDING ANY PROVISION OF THIS ACT TO THE CONTRARY,  ANY  LOCAL
   27  LAW  ADOPTED PURSUANT TO THIS ACT SHALL PROVIDE THAT NOTWITHSTANDING ANY
   28  PROVISION OF SUCH LOCAL LAW IN THE CASE WHERE ALL TENANTS OCCUPYING  THE
   29  HOUSING  ACCOMMODATION  ON  THE  EFFECTIVE  DATE  OF THIS PARAGRAPH HAVE
   30  VACATED THE HOUSING ACCOMMODATION AND A FAMILY MEMBER OF  SUCH  VACATING
   31  TENANT  OR  TENANTS  IS  ENTITLED TO AND CONTINUES TO OCCUPY THE HOUSING
   32  ACCOMMODATION SUBJECT TO THE PROTECTIONS OF SUCH ACT, IF  SUCH  ACCOMMO-
   33  DATION  CONTINUES  TO  BE  SUBJECT  TO SUCH ACT AFTER SUCH FAMILY MEMBER
   34  VACATES, ON THE OCCURRENCE OF SUCH VACANCY THE MAXIMUM COLLECTABLE  RENT
   35  SHALL  BE  INCREASED  BY A SUM EQUAL TO THE ALLOWANCE THEN IN EFFECT FOR
   36  VACANCY LEASES FOR HOUSING ACCOMMODATIONS COVERED BY THE RENT STABILIZA-
   37  TION LAW OF NINETEEN HUNDRED SIXTY-NINE, INCLUDING THE AMOUNT ALLOWED BY
   38  PARAGRAPH (5-A) OF SUBDIVISION C OF SECTION 26-511 OF SUCH  LAW.    THIS
   39  INCREASE  SHALL  BE  IN  ADDITION TO ANY OTHER INCREASES PROVIDED FOR IN
   40  THIS ACT AND SHALL BE APPLICABLE IN LIKE MANNER TO  EACH  SECOND  SUBSE-
   41  QUENT SUCCESSION.
   42    S 27. Subdivision 1 of section 14 of the public housing law is amended
   43  by adding a new paragraph (w) to read as follows:
   44    (W) ENTER INTO CONTRACTS, AS AN AGENT OF THE STATE, WITH PRIVATE ENTI-
   45  TIES TO ENCOURAGE THE DEVELOPMENT OF NEW MULTI-FAMILY HOUSING IN MUNICI-
   46  PALITIES  FOUND  BY THE LEGISLATURE TO BE SUFFERING FROM A HOUSING EMER-
   47  GENCY AT THE  TIME  OF  CONTRACTING.  SUCH  CONTRACTS  SHALL  INCLUDE  A
   48  COMMITMENT  BY  THE  STATE THAT ANY SUCH NEW HOUSING SHALL REMAIN EXEMPT
   49  FROM RENT CONTROL, RENT STABILIZATION AND ANY OTHER FORM OF  RENT  REGU-
   50  LATION  FOR  A  TERM OF FIFTY YEARS EXCEPT WHERE EQUIVALENT, CO-TERMINUS
   51  AND GENERAL CONTROLS OF PRICES AND WAGES ARE IMPOSED OR WHERE THE  OWNER
   52  OR  DEVELOPER  OF  SUCH  HOUSING VOLUNTARILY AGREES TO ACCEPT SUCH REGU-
   53  LATION IN CONSIDERATION FOR TAX OR OTHER GOVERNMENTAL BENEFITS. NOTWITH-
   54  STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AN AGREEMENT BY THE
   55  DEVELOPER TO BUILD NEW MULTI-FAMILY HOUSING IN AN AREA SUFFERING FROM  A

       S. 5553                            19                            A. 8346

    1  HOUSING  EMERGENCY  SHALL BE DEEMED GOOD AND VALID CONSIDERATION FOR THE
    2  FOREGOING COMMITMENT BY THE STATE.
    3    S  28. The penal law is amended by adding a new article 241 to read as
    4  follows:
    5                                  ARTICLE 241
    6                    HARASSMENT OF RENT REGULATED TENANTS
    7  SECTION 241.00 HARASSMENT OF A  RENT  REGULATED  TENANT;  DEFINITION  OF
    8                   TERMS.
    9          241.05 HARASSMENT OF A RENT REGULATED TENANT.
   10  S 241.00 HARASSMENT OF A RENT REGULATED TENANT; DEFINITION OF TERMS.
   11    AS USED IN THIS ARTICLE:
   12    1.  "RENT  REGULATED  TENANT"  SHALL MEAN A PERSON OCCUPYING A HOUSING
   13  ACCOMMODATION WHICH IS SUBJECT TO THE REGULATIONS AND CONTROL  OF  RESI-
   14  DENTIAL  RENTS  AND  EVICTIONS  PURSUANT  TO  THE EMERGENCY HOUSING RENT
   15  CONTROL LAW, THE LOCAL EMERGENCY HOUSING RENT CONTROL ACT, THE EMERGENCY
   16  TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, THE NEW YORK  CITY  RENT
   17  AND  REHABILITATION  LAW  OR THE NEW YORK CITY RENT STABILIZATION LAW OF
   18  NINETEEN HUNDRED SIXTY-NINE, AND SUCH PERSON IS  EITHER  A  PARTY  TO  A
   19  LEASE  OR  RENTAL  AGREEMENT FOR SUCH HOUSING ACCOMMODATION, A STATUTORY
   20  TENANT OR A PERSON WHO LAWFULLY OCCUPIES SUCH HOUSING ACCOMMODATION WITH
   21  SUCH PARTY TO A LEASE OR RENTAL AGREEMENT OR WITH SUCH STATUTORY TENANT.
   22  THE DEFINITION OF "RENT REGULATED TENANT" AS USED  IN  THIS  SUBDIVISION
   23  SHALL BE APPLICABLE ONLY TO THE PROVISIONS OF THIS ARTICLE AND SHALL NOT
   24  BE APPLICABLE TO ANY OTHER PROVISION OF LAW.
   25    2.  "HOUSING  ACCOMMODATIONS"  SHALL MEAN HOUSING ACCOMMODATIONS WHICH
   26  ARE SUBJECT TO THE REGULATIONS AND  CONTROL  OF  RESIDENTIAL  RENTS  AND
   27  EVICTIONS  PURSUANT TO THE EMERGENCY HOUSING RENT CONTROL LAW, THE LOCAL
   28  EMERGENCY HOUSING RENT CONTROL ACT, THE EMERGENCY TENANT PROTECTION  ACT
   29  OF  NINETEEN SEVENTY-FOUR, THE NEW YORK CITY RENT AND REHABILITATION LAW
   30  OR THE  NEW  YORK  CITY  RENT  STABILIZATION  LAW  OF  NINETEEN  HUNDRED
   31  SIXTY-NINE.
   32    3.  "OWNER"  SHALL  MEAN  AN  OWNER,  LESSOR, SUBLESSOR, ASSIGNEE, NET
   33  LESSEE, OR A PROPRIETARY LESSEE OF A HOUSING ACCOMMODATION IN  A  STRUC-
   34  TURE  OR  PREMISES OWNED BY A COOPERATIVE CORPORATION OR ASSOCIATION, OR
   35  AN OWNER OF A CONDOMINIUM UNIT OR THE SPONSOR OF SUCH COOPERATIVE CORPO-
   36  RATION OR ASSOCIATION OR CONDOMINIUM DEVELOPMENT, OR ANY OTHER PERSON OR
   37  ENTITY RECEIVING OR ENTITLED TO RECEIVE RENT FOR THE USE  OR  OCCUPATION
   38  OF  ANY  HOUSING  ACCOMMODATION,  OR AN AGENT OF OR ANY PERSON ACTING ON
   39  BEHALF OF ANY OF THE FOREGOING.
   40  S 241.05 HARASSMENT OF A RENT REGULATED TENANT.
   41    AN OWNER IS GUILTY OF HARASSMENT OF A RENT REGULATED TENANT WHEN  WITH
   42  INTENT  TO  CAUSE  A  RENT REGULATED TENANT TO VACATE A HOUSING ACCOMMO-
   43  DATION, SUCH OWNER:
   44    1. WITH INTENT TO CAUSE PHYSICAL INJURY TO SUCH  TENANT,  CAUSES  SUCH
   45  INJURY TO SUCH TENANT OR TO A THIRD PERSON; OR
   46    2.  RECKLESSLY  CAUSES  PHYSICAL  INJURY  TO SUCH TENANT OR TO A THIRD
   47  PERSON.
   48    HARASSMENT OF A RENT REGULATED TENANT IS A CLASS E FELONY.
   49    S 28-a. Subparagraph (a) of paragraph 2 of subdivision  b  of  section
   50  26-413  of the administrative code of the city of New York is amended to
   51  read as follows:
   52    (a) Impose by administrative order after hearing, a civil penalty  for
   53  any violation of said section and bring an action to recover same in any
   54  court  of  competent  jurisdiction.    Such  penalty  in  the  case of a
   55  violation of subdivision d of such section shall be  in  the  amount  of
   56  {five  hundred dollars for a first such offense and one thousand dollars

       S. 5553                            20                            A. 8346

    1  for each subsequent} NOT LESS THAN ONE THOUSAND DOLLARS  NOR  MORE  THAN
    2  FIVE  THOUSAND DOLLARS FOR EACH offense or for a violation consisting of
    3  conduct directed at the tenants of more than one housing  accommodation;
    4  and  in the case of any other violation of such section in the amount of
    5  one hundred dollars for the first such offense and five hundred  dollars
    6  for  each  subsequent offense.  Such order by the city rent agency shall
    7  be deemed a final determination for the purposes of judicial  review  as
    8  provided  in  section  26-411  of  this  chapter.   Such action shall be
    9  brought on behalf of the city and any amount  recovered  shall  be  paid
   10  into  the  city treasury.  Such right of action may be released, compro-
   11  mised or adjusted by the city rent agency at any item subsequent to  the
   12  issuance of such administrative order.
   13    S 28-b. Paragraph 2 of subdivision c of section 26-516 of the adminis-
   14  trative code of the city of New York is amended to read as follows:
   15    (2)  to have harassed a tenant to obtain vacancy of his or her housing
   16  accommodation, the commissioner may impose by administrative order after
   17  hearing, a civil penalty for any such violation. Such penalty  shall  be
   18  in the amount of {up to one} NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE
   19  THAN  FIVE  thousand  dollars for {a first} EACH such offense {and up to
   20  twenty-five hundred dollars  for  each  subsequent  offense}  or  for  a
   21  violation consisting of conduct directed at the tenants of more than one
   22  housing accommodation.
   23    S  28-c.  Clause (ii) of paragraph 3 of subdivision a of section 12 of
   24  section 4 of chapter 576 of the laws of 1974, constituting the emergency
   25  tenant protection act of nineteen seventy-four, as added by chapter  403
   26  of the laws of 1983, is amended to read as follows:
   27    (ii) to have harassed a tenant to obtain vacancy of his housing accom-
   28  modation,  the  commissioner  may  impose  by administrative order after
   29  hearing, a civil penalty for any such violation. Such penalty  shall  be
   30  in  the  amount  of {up to one thousand dollars for a first such offense
   31  and up to twenty-five hundred dollars for each subsequent} NOT LESS THAN
   32  ONE THOUSAND DOLLARS NOR  MORE  THAN  FIVE  THOUSAND  DOLLARS  FOR  EACH
   33  offense or for a violation consisting of conduct directed at the tenants
   34  of more than one housing accommodation.
   35    S  29.  Subdivision  d of section 8 of section 4 of chapter 576 of the
   36  laws of 1974 constituting the emergency tenant protection act  of  nine-
   37  teen  seventy-four,  as  amended  by chapter 403 of the laws of 1983, is
   38  amended to read as follows:
   39    d. The failure to pay the prescribed  assessment  not  to  exceed  ten
   40  dollars  per  unit  for any housing accommodation subject to this act or
   41  the New York city rent stabilization law of nineteen hundred  sixty-nine
   42  shall{, until such assessment is paid, bar an owner from applying for or
   43  collecting  any further rent increases.  The late payment of the assess-
   44  ment shall result in the prospective elimination of such sanctions.  The
   45  city  of  New York shall certify to the division such information as the
   46  division shall deem necessary to comply  with  the  provisions  of  this
   47  subdivision}  CONSTITUTE  A  CHARGE  DUE  AND  OWING  SUCH CITY, TOWN OR
   48  VILLAGE WHICH HAS IMPOSED AN ANNUAL CHARGE FOR EACH SUCH HOUSING  ACCOM-
   49  MODATION  PURSUANT TO SUBDIVISION B OF THIS SECTION. ANY SUCH CITY, TOWN
   50  OR VILLAGE SHALL BE AUTHORIZED TO PROVIDE FOR  THE  ENFORCEMENT  OF  THE
   51  COLLECTION OF SUCH CHARGES BY COMMENCING AN ACTION OR PROCEEDING FOR THE
   52  RECOVERY  OF  SUCH FEES OR BY THE FILING OF A LIEN UPON THE BUILDING AND
   53  LOT.  SUCH METHODS FOR THE ENFORCEMENT OF THE COLLECTION OF SUCH CHARGES
   54  SHALL BE THE SOLE REMEDY FOR THE ENFORCEMENT OF THIS SECTION.

       S. 5553                            21                            A. 8346

    1    S 30. Subdivision b of section 26-517.1 of the administrative code  of
    2  the city of New York, as added by local law number 95 of the city of New
    3  York for the year 1985, is amended to read as follows:
    4    b. (1) Pursuant to the provisions of subdivision d of section eight of
    5  the  emergency tenant protection act of nineteen {hundred} seventy-four,
    6  the failure to pay the fee imposed by the provisions of subdivision a of
    7  this section shall {preclude an owner from applying  for  or  collecting
    8  any  further  rent  increases authorized under this chapter or any other
    9  provision of law, and the late payment of such fee shall result  in  the
   10  prospective  elimination only of the sanctions contained therein. Inter-
   11  est shall be imposed on such late payment at the same rate as is imposed
   12  on a delinquent tax on real property} CONSTITUTE A CHARGE DUE AND  OWING
   13  THE  CITY.  ALL SUCH FEES DUE AND OWING THE CITY SHALL CONSTITUTE A DEBT
   14  RECOVERABLE FROM THE OWNER AND  THE  CITY  MAY  COMMENCE  AN  ACTION  OR
   15  PROCEEDING  FOR  THE  RECOVERY  OF SUCH FEES OR MAY FILE A LIEN UPON THE
   16  BUILDING AND LOT.  IF THE PAYMENT OF SUCH FEES IS NOT  RECEIVED  BY  THE
   17  CITY  WITHIN  SIXTY  DAYS  OF  THE  DATE CONTAINED IN THE WRITTEN NOTICE
   18  REQUESTING SUCH PAYMENT, THE CITY SHALL PROVIDE A SECOND WRITTEN  NOTICE
   19  TO THE OWNER SETTING FORTH THE AMOUNT OF FEES DUE AND OWING THE CITY AND
   20  A DEMAND FOR PAYMENT WITHIN THIRTY DAYS THEREOF.
   21    (2)  IF  SUCH  PAYMENT  IS  NOT MADE TO THE CITY WITHIN SUCH TIME, ALL
   22  UNPAID FEES SHALL CONSTITUTE A LIEN UPON THE PREMISES AND SHALL BE FILED
   23  IN THE OFFICE OF THE CITY COLLECTOR AS AN ENTRY OF THE ACCOUNT STATED IN
   24  THE BOOK IN WHICH SUCH CHARGES AGAINST THE PREMISES ARE TO  BE  ENTERED.
   25  SUCH  LIEN  SHALL HAVE PRIORITY OVER ALL OTHER LIENS AND ENCUMBRANCES ON
   26  THE PREMISES EXCEPT FOR THE LIEN OF TAXES AND ASSESSMENTS.  HOWEVER,  NO
   27  LIEN  CREATED  PURSUANT  TO THIS SUBDIVISION SHALL BE ENFORCED AGAINST A
   28  SUBSEQUENT PURCHASER IN GOOD FAITH OR MORTGAGEE IN GOOD FAITH UNLESS THE
   29  REQUIREMENTS OF THIS PARAGRAPH ARE SATISFIED.
   30    (3) A NOTICE PURSUANT TO PARAGRAPH ONE OF  THIS  SUBDIVISION,  STATING
   31  THE AMOUNT DUE AND THE NATURE OF THE CHARGE, SHALL BE MAILED BY THE CITY
   32  COLLECTOR,  WITHIN FIVE DAYS AFTER SUCH ENTRY, TO THE LAST KNOWN ADDRESS
   33  OF THE OWNER OR AGENT.
   34    (4) IF SUCH CHARGE IS NOT PAID WITHIN THIRTY DAYS  FROM  THE  DATE  OF
   35  ENTRY,  IT  SHALL  BE THE DUTY OF THE CITY COLLECTOR TO RECEIVE INTEREST
   36  THEREON AT THE SAME RATE AS IS IMPOSED ON A DELINQUENT TAX ON REAL PROP-
   37  ERTY, TO BE CALCULATED TO THE DATE OF PAYMENT FROM THE DATE OF ENTRY.
   38    (5) SUCH CHARGE AND THE INTEREST THEREON SHALL CONTINUE TO  BE,  UNTIL
   39  PAID,  A  LIEN ON THE PREMISES. SUCH LIEN SHALL BE A TAX LIEN WITHIN THE
   40  MEANING OF SECTIONS 11-319 AND 11-401 OF THIS  CODE  AND  MAY  BE  SOLD,
   41  ENFORCED OR FORECLOSED IN THE MANNER PROVIDED IN CHAPTERS THREE AND FOUR
   42  OF TITLE ELEVEN OF THIS CODE.
   43    (6)  THE  PROVISIONS  SET  FORTH IN THIS SUBDIVISION SHALL BE THE SOLE
   44  REMEDY FOR THE ENFORCEMENT OF THIS SECTION.
   45    S 31. The opening paragraph of paragraph 1 of subdivision a of section
   46  12 of section 4 of chapter 576 of the  laws  of  1974  constituting  the
   47  emergency  tenant protection act of nineteen seventy-four, as amended by
   48  chapter 253 of the laws of 1993, is amended to read as follows:
   49    Subject to the conditions and limitations of this paragraph, any owner
   50  of housing accommodations in a city having a population of less than one
   51  million or a town or village as to which an emergency has been  declared
   52  pursuant  to  section  three,  who, upon complaint of a tenant or of the
   53  state division of housing and community renewal, is found by  the  state
   54  division  of  housing and community renewal, after a reasonable opportu-
   55  nity to be heard, to have collected an overcharge above the rent author-
   56  ized for a housing accommodation subject to this act shall be liable  to

       S. 5553                            22                            A. 8346

    1  the  tenant  for a penalty equal to three times the amount of such over-
    2  charge. In no event shall such treble damage penalty be assessed against
    3  an owner based solely on said owner`s failure to file a proper or timely
    4  initial or annual rent registration statement.  If the owner establishes
    5  by a preponderance of the evidence that the overcharge was neither will-
    6  ful  nor  attributable  to his negligence, the state division of housing
    7  and community renewal shall establish the penalty as the amount  of  the
    8  overcharge  plus  interest at the rate of interest payable on a judgment
    9  pursuant to section five thousand four of the  civil  practice  law  and
   10  rules. (i) Except as to complaints filed pursuant to clause (ii) of this
   11  paragraph, the legal regulated rent for purposes of determining an over-
   12  charge, shall be deemed to be the rent indicated in the annual registra-
   13  tion  statement  filed  four years prior to the most recent registration
   14  statement, (or, if more recently filed, the initial registration  state-
   15  ment) plus in each case any subsequent lawful increases and adjustments.
   16  WHERE  THE  AMOUNT  OF  RENT  SET  FORTH IN THE ANNUAL RENT REGISTRATION
   17  STATEMENT FILED FOUR YEARS PRIOR TO THE MOST RECENT REGISTRATION  STATE-
   18  MENT  IS  NOT  CHALLENGED  WITHIN FOUR YEARS OF ITS FILING, NEITHER SUCH
   19  RENT NOR SERVICE OF ANY REGISTRATION SHALL BE SUBJECT  TO  CHALLENGE  AT
   20  ANY  TIME  THEREAFTER. (ii) As to complaints filed within ninety days of
   21  the initial registration of a housing accommodation, the legal regulated
   22  rent for purposes of determining an overcharge shall be deemed to be the
   23  rent charged on the date four years prior to the  date  of  the  initial
   24  registration  of  the housing accommodation (or, if the housing accommo-
   25  dation was subject to this act for less than  four  years,  the  initial
   26  legal  regulated  rent)  plus  in  each  case,  any lawful increases and
   27  adjustments. Where the rent charged on the date four years prior to  the
   28  date  of  the initial registration of the accommodation cannot be estab-
   29  lished, such rent shall be established  by  the  division.    WHERE  THE
   30  AMOUNT OF RENT SET FORTH IN THE ANNUAL RENT REGISTRATION STATEMENT FILED
   31  FOUR  YEARS PRIOR TO THE MOST RECENT REGISTRATION STATEMENT IS NOT CHAL-
   32  LENGED WITHIN FOUR YEARS OF ITS FILING, NEITHER SUCH RENT NOR SERVICE OF
   33  ANY REGISTRATION SHALL BE SUBJECT TO CHALLENGE AT ANY TIME THEREAFTER.
   34    S 32. Clause (i) of subparagraph (b) of paragraph 1 of  subdivision  a
   35  of section 12 of section 4 of chapter 576 of the laws of 1974 constitut-
   36  ing  the  emergency  tenant  protection act of nineteen seventy-four, as
   37  amended by chapter 403 of the laws  of  1983,  is  amended  to  read  as
   38  follows:
   39    (i)  Except  as provided under clauses (ii) and (iii) of this subpara-
   40  graph, a complaint under this subdivision shall be filed with the  state
   41  division of housing and community renewal within four years of the first
   42  overcharge alleged AND NO DETERMINATION OF AN OVERCHARGE and no award OR
   43  CALCULATION OF AN AWARD of the amount of an overcharge may be based upon
   44  an  overcharge having occurred more than four years before the complaint
   45  is filed.   THIS PARAGRAPH SHALL  PRECLUDE  EXAMINATION  OF  THE  RENTAL
   46  HISTORY  OF  THE  HOUSING  ACCOMMODATION  PRIOR  TO THE FOUR-YEAR PERIOD
   47  PRECEDING THE FILING OF A COMPLAINT PURSUANT TO THIS SUBDIVISION.
   48    S 33. Subdivision a of section 26-516 of the  administrative  code  of
   49  the  city of New York, as amended by chapter 253 of the laws of 1993, is
   50  amended to read as follows:
   51    a. Subject to the conditions and limitations of this subdivision,  any
   52  owner  of  housing accommodations who, upon complaint of a tenant, or of
   53  the state division of housing and community renewal,  is  found  by  the
   54  state  division  of  housing  and  community renewal, after a reasonable
   55  opportunity to be heard, to have collected an overcharge above the  rent
   56  authorized  for a housing accommodation subject to this chapter shall be

       S. 5553                            23                            A. 8346

    1  liable to the tenant for a penalty equal to three times  the  amount  of
    2  such  overcharge.  In  no  event  shall  such  treble  damage penalty be
    3  assessed against an owner based solely on said owner`s failure to file a
    4  timely  or proper initial or annual rent registration statement.  If the
    5  owner establishes by a preponderance of the evidence that the overcharge
    6  was not willful, the state division of  housing  and  community  renewal
    7  shall  establish the penalty as the amount of the overcharge plus inter-
    8  est. (i) Except as to complaints filed pursuant to clause (ii)  of  this
    9  paragraph, the legal regulated rent for purposes of determining an over-
   10  charge, shall be the rent indicated in the annual registration statement
   11  filed  four  years prior to the most recent registration statement, (or,
   12  if more recently filed, the initial registration statement) plus in each
   13  case any subsequent lawful increases and adjustments.  WHERE THE  AMOUNT
   14  OF  RENT  SET FORTH IN THE ANNUAL RENT REGISTRATION STATEMENT FILED FOUR
   15  YEARS PRIOR TO THE MOST RECENT REGISTRATION STATEMENT IS NOT  CHALLENGED
   16  WITHIN  FOUR  YEARS  OF ITS FILING, NEITHER SUCH RENT NOR SERVICE OF ANY
   17  REGISTRATION SHALL BE SUBJECT TO CHALLENGE AT ANY TIME THEREAFTER.  (ii)
   18  As to complaints filed within ninety days of the initial registration of
   19  a  housing accommodation, the legal regulated rent shall be deemed to be
   20  the rent charged on the date four years prior to the date of the initial
   21  registration of the housing accommodation (or, if the  housing  accommo-
   22  dation was subject to this chapter for less than four years, the initial
   23  legal  regulated  rent)  plus  in  each  case,  any lawful increases and
   24  adjustments. Where the rent charged on the date four years prior to  the
   25  date  of  the initial registration of the accommodation cannot be estab-
   26  lished, such rent shall be established by the division.
   27    Where the rent charged on the date four years prior  to  the  date  of
   28  initial registration of the housing accommodation cannot be established,
   29  such  rent  shall  be  established by the division provided that where a
   30  rent is established based on rentals determined under the provisions  of
   31  the  local emergency housing rent control act such rent must be adjusted
   32  to account for no less than the minimum increases which would be permit-
   33  ted if the housing accommodation were covered under  the  provisions  of
   34  this  chapter.    WHERE  THE AMOUNT OF RENT SET FORTH IN THE ANNUAL RENT
   35  REGISTRATION STATEMENT FILED FOUR YEARS PRIOR TO THE MOST RECENT  REGIS-
   36  TRATION  STATEMENT  IS  NOT  CHALLENGED WITHIN FOUR YEARS OF ITS FILING,
   37  NEITHER SUCH RENT NOR SERVICE OF ANY REGISTRATION SHALL  BE  SUBJECT  TO
   38  CHALLENGE AT ANY TIME THEREAFTER.
   39    (1)  The  order of the state division of housing and community renewal
   40  shall apportion the owner`s liability  between  or  among  two  or  more
   41  tenants  found  to  have  been  overcharged  by  such owner during their
   42  particular tenancy of a unit.
   43    (2) Except as provided under clauses (i) and (ii) of this paragraph, a
   44  complaint under this subdivision shall be filed with the state  division
   45  of  housing  and  community renewal within four years of the first over-
   46  charge alleged AND NO DETERMINATION OF AN OVERCHARGE  and  no  award  OR
   47  CALCULATION OF AN AWARD of the amount of an overcharge may be based upon
   48  an  overcharge having occurred more than four years before the complaint
   49  is filed.  (i) No penalty of three times the  overcharge  may  be  based
   50  upon  an  overcharge  having  occurred  more  than  two years before the
   51  complaint is filed or upon an overcharge which occurred prior  to  April
   52  first,  nineteen  hundred  eighty-four.    (ii) Any complaint based upon
   53  overcharges occurring prior to the date of filing of  the  initial  rent
   54  registration  as  provided  in  section  26-517 of this chapter shall be
   55  filed within ninety days of the mailing of notice to the tenant of  such
   56  registration.    THIS PARAGRAPH SHALL PRECLUDE EXAMINATION OF THE RENTAL

       S. 5553                            24                            A. 8346

    1  HISTORY OF THE HOUSING  ACCOMMODATION  PRIOR  TO  THE  FOUR-YEAR  PERIOD
    2  PRECEDING THE FILING OF A COMPLAINT PURSUANT TO THIS SUBDIVISION.
    3    (3)  Any affected tenant shall be notified of and given an opportunity
    4  to join in any complaint filed by an officer or employee  of  the  state
    5  division of housing and community renewal.
    6    (4)  An owner found to have overcharged may be assessed the reasonable
    7  costs and attorney`s fees of the proceeding and interest from  the  date
    8  of the overcharge at the rate of interest payable on a judgment pursuant
    9  to section five thousand four of the civil practice law and rules.
   10    (5)  The  order of the state division of housing and community renewal
   11  awarding penalties may, upon the expiration of the period in  which  the
   12  owner  may  institute  a proceeding pursuant to article seventy-eight of
   13  the civil practice law and rules, be filed and enforced by a  tenant  in
   14  the same manner as a judgment or not in excess of twenty percent thereof
   15  per month may be offset against any rent thereafter due the owner.
   16    S  34.  Section 213-a of the civil practice law and rules, as added by
   17  chapter 403 of the laws of 1983, is amended to read as follows:
   18    S 213-a. Actions to be commenced within four years;  residential  rent
   19  overcharge.  An  action  on  a  residential  rent  overcharge  shall  be
   20  commenced within four years of {such} THE FIRST overcharge  ALLEGED  AND
   21  NO  DETERMINATION  OF  AN  OVERCHARGE  AND NO AWARD OR CALCULATION OF AN
   22  AWARD OF THE AMOUNT OF ANY OVERCHARGE MAY BE BASED  UPON  AN  OVERCHARGE
   23  HAVING  OCCURRED  MORE  THAN  FOUR YEARS BEFORE THE ACTION IS COMMENCED.
   24  THIS SECTION SHALL PRECLUDE EXAMINATION OF THE  RENTAL  HISTORY  OF  THE
   25  HOUSING  ACCOMMODATION PRIOR TO THE FOUR-YEAR PERIOD IMMEDIATELY PRECED-
   26  ING THE COMMENCEMENT OF THE ACTION.
   27    S 35. Section 731 of the real property actions and proceedings law  is
   28  amended by adding a new subdivision 3 to read as follows:
   29    3.  IN  THE  CITY  OF  NEW  YORK, WHEN THE PETITIONER SEEKS TO MAKE AN
   30  APPLICATION PURSUANT TO SUBDIVISION TWO OF SECTION SEVEN HUNDRED  FORTY-
   31  FIVE OF THIS ARTICLE, THE NOTICE OF PETITION SHALL ADVISE THE RESPONDENT
   32  OF  THE  REQUIREMENTS  OF  SUBDIVISION  TWO  OF  SECTION  SEVEN  HUNDRED
   33  FORTY-FIVE OF THIS ARTICLE.
   34    S 36. Subdivision 2 of section 745 of the real  property  actions  and
   35  proceedings law, as added by chapter 403 of the laws of 1983, is amended
   36  to read as follows:
   37    2. In the city of New York:
   38    (a) In a summary proceeding upon the second {request by the tenant for
   39  an  adjournment}  OF  TWO ADJOURNMENTS AT THE REQUEST OF THE RESPONDENT,
   40  OR, UPON THE THIRTIETH DAY AFTER THE FIRST APPEARANCE OF THE PARTIES  IN
   41  COURT  LESS  ANY  DAYS  THAT  THE PROCEEDING HAS BEEN ADJOURNED UPON THE
   42  REQUEST OF THE PETITIONER, WHICHEVER  OCCURS  SOONER,  the  court  shall
   43  direct that the {tenant post all} RESPONDENT, UPON AN APPLICATION BY THE
   44  PETITIONER,  DEPOSIT WITH THE COURT WITHIN FIVE DAYS sums OF RENT OR USE
   45  AND OCCUPANCY ACCRUED FROM THE DATE THE PETITION AND NOTICE OF  PETITION
   46  ARE  SERVED  UPON  THE  RESPONDENT,  AND ALL SUMS as they become due for
   47  {future} rent and use and occupancy, which may  be  established  without
   48  the  use of expert testimony, unless {waived by the court for good cause
   49  shown} THE RESPONDENT CAN ESTABLISH, AT AN  IMMEDIATE  HEARING,  TO  THE
   50  SATISFACTION OF THE COURT THAT RESPONDENT HAS PROPERLY INTERPOSED ONE OF
   51  THE FOLLOWING DEFENSES OR ESTABLISHED THE FOLLOWING GROUNDS:
   52    (I) THE PETITIONER IS NOT A PROPER PARTY TO THE PROCEEDING PURSUANT TO
   53  SECTION SEVEN HUNDRED TWENTY-ONE OF THIS ARTICLE; OR
   54    (II)  (A)  ACTUAL  EVICTION,  OR  (B)  ACTUAL PARTIAL EVICTION, OR (C)
   55  CONSTRUCTIVE EVICTION; AND RESPONDENT HAS QUIT THE PREMISES; OR

       S. 5553                            25                            A. 8346

    1    (III) A DEFENSE PURSUANT TO SECTION ONE HUNDRED FORTY-THREE-B  OF  THE
    2  SOCIAL SERVICES LAW; OR
    3    (IV) THE COURT LACKS JURISDICTION.
    4    WHEN THE RENTAL UNIT THAT IS THE SUBJECT OF THE PETITION IS LOCATED IN
    5  A  BUILDING CONTAINING TWELVE OR FEWER UNITS, THE COURT SHALL INQUIRE OF
    6  THE RESPONDENT AS TO WHETHER THERE IS ANY UNDISPUTED AMOUNT OF THE  RENT
    7  OR  USE  AND OCCUPANCY DUE TO THE PETITIONER. ANY SUCH UNDISPUTED AMOUNT
    8  SHALL BE PAID DIRECTLY TO THE PETITIONER, AND ANY DISPUTED AMOUNT  SHALL
    9  BE DEPOSITED TO THE COURT BY THE RESPONDENT AS PROVIDED IN THIS SUBDIVI-
   10  SION.
   11    Two  adjournments  shall  {not}  include an adjournment requested by a
   12  {tenant} RESPONDENT unrepresented by counsel for the purpose of securing
   13  counsel made on {the initial} A return  date  of  the  proceeding.  Such
   14  {future}  rent  {and}  OR use and occupancy sums shall be deposited with
   15  the clerk of the court or paid to such other person or entity, including
   16  the petitioner OR AN AGENT DESIGNATED BY THE  DIVISION  OF  HOUSING  AND
   17  COMMUNITY  RENEWAL,  as  the court shall direct or shall be expended for
   18  such emergency repairs as the court shall approve.
   19    (b) {In any adjournment of a summary proceeding, other than on consent
   20  or at the request of the petitioner, the court shall at the petitioner`s
   21  request state on the record why for good cause shown it is not directing
   22  the tenant to pay or post all sums  demanded  pursuant  to  a  lease  or
   23  rental  agreement  in the proceeding as rent and use and occupancy.} (I)
   24  THE COURT SHALL NOT REQUIRE THE RESPONDENT TO  DEPOSIT  THE  PORTION  OF
   25  RENT OR USE AND OCCUPANCY, IF ANY, WHICH IS PAYABLE BY DIRECT GOVERNMENT
   26  HOUSING   SUBSIDY,  ANY  CURRENTLY  EFFECTIVE  SENIOR  CITIZEN  INCREASE
   27  EXEMPTION AUTHORIZED PURSUANT TO SECTIONS FOUR HUNDRED SIXTY-SEVEN-B AND
   28  FOUR HUNDRED SIXTY-SEVEN-C OF THE REAL PROPERTY TAX LAW, DIRECT  PAYMENT
   29  OF RENT OR A TWO-PARTY CHECK ISSUED BY A SOCIAL SERVICES DISTRICT OR THE
   30  DEPARTMENT  OF  SOCIAL  SERVICES,  OR  RENTAL ASSISTANCE THAT IS PAYABLE
   31  PURSUANT TO COURT ORDERS ISSUED  IN  LITIGATION  COMMENCED  IN  NINETEEN
   32  HUNDRED  EIGHTY-SEVEN  IN  A  PROCEEDING  IN WHICH THE AMOUNT OF SHELTER
   33  ALLOWANCE IS AT ISSUE ON BEHALF OF RECIPIENTS OF AID TO DEPENDENT  CHIL-
   34  DREN.  IN THE EVENT THE RESPONDENT OR OTHER ADULT MEMBER OF THE RESPOND-
   35  ENT`S HOUSEHOLD RECEIVES PUBLIC ASSISTANCE PURSUANT TO  TITLE  THREE  OR
   36  TITLE  TEN  OF  ARTICLE  FIVE OF THE SOCIAL SERVICES LAW, THE RESPONDENT
   37  SHALL, WHEN DIRECTED BY THE COURT TO DEPOSIT RENT AND USE OR  OCCUPANCY,
   38  ONLY  BE  REQUIRED  TO  DEPOSIT WITH THE COURT THE AMOUNT OF THE SHELTER
   39  ALLOWANCE PORTION OF THE PUBLIC ASSISTANCE GRANT ISSUED BY  THE  DEPART-
   40  MENT  OF SOCIAL SERVICES OR A SOCIAL SERVICES DISTRICT. IN THE EVENT THE
   41  RESPONDENT RECEIVES  SUPPLEMENTAL  SECURITY  INCOME  PURSUANT  TO  TITLE
   42  SIXTEEN OF THE FEDERAL SOCIAL SECURITY ACT AND TITLE SIX OF ARTICLE FIVE
   43  OF  THE  SOCIAL  SERVICES  LAW, THE RESPONDENT SHALL ONLY BE REQUIRED TO
   44  DEPOSIT ONE-THIRD OF THE MONTHLY SUPPLEMENTAL SECURITY INCOME PAYMENT.
   45    (II) ANY SUM REQUIRED TO BE DEPOSITED WITH THE COURT PURSUANT TO  THIS
   46  SUBDIVISION  SHALL  BE OFFSET BY PAYMENT, IF ANY, MADE BY THE RESPONDENT
   47  PURSUANT TO SECTION TWO HUNDRED THIRTY-FIVE-A OF THE REAL  PROPERTY  LAW
   48  OR SECTION THREE HUNDRED TWO-C OF THE MULTIPLE DWELLING LAW.
   49    (C)  (I)  IF  THE  RESPONDENT  SHALL  FAIL  TO COMPLY WITH THE COURT`S
   50  DIRECTIONS WITH RESPECT TO DIRECT PAYMENT TO THE PETITIONER OR MAKING  A
   51  DEPOSIT  AS  DIRECTED BY THE COURT OF THE FULL AMOUNT OF THE RENT OR USE
   52  AND OCCUPANCY REQUIRED TO BE DEPOSITED, THE COURT UPON AN APPLICATION BY
   53  THE PETITIONER SHALL DISMISS WITHOUT PREJUDICE THE DEFENSES AND COUNTER-
   54  CLAIMS INTERPOSED BY THE RESPONDENT AND GRANT  JUDGMENT  FOR  PETITIONER
   55  UNLESS  RESPONDENT  HAS INTERPOSED THE DEFENSE OF PAYMENT AND SHOWS THAT

       S. 5553                            26                            A. 8346

    1  THE AMOUNT REQUIRED TO BE DEPOSITED HAS  PREVIOUSLY  BEEN  PAID  TO  THE
    2  PETITIONER.
    3    (II) IN THE EVENT THAT THE RESPONDENT MAKES A DEPOSIT REQUIRED BY THIS
    4  SUBDIVISION  BUT FAILS TO DEPOSIT WITH THE COURT OR PAY, AS THE CASE MAY
    5  BE, UPON THE DUE DATE, ALL RENT OR USE AND OCCUPANCY  WHICH  MAY  BECOME
    6  DUE  UP TO THE TIME OF THE ENTRY OF JUDGMENT, THE COURT UPON AN APPLICA-
    7  TION OF THE PETITIONER SHALL ORDER AN  IMMEDIATE  TRIAL  OF  THE  ISSUES
    8  RAISED IN THE RESPONDENT`S ANSWER.  AN "IMMEDIATE TRIAL" SHALL MEAN THAT
    9  NO  FURTHER  ADJOURNMENTS  OF  THE PROCEEDING WITHOUT PETITIONER CONSENT
   10  SHALL BE GRANTED, THE CASE SHALL BE ASSIGNED BY THE ADMINISTRATIVE JUDGE
   11  TO A TRIAL READY PART AND SUCH TRIAL SHALL COMMENCE AND CONTINUE DAY  TO
   12  DAY  UNTIL COMPLETED. THERE SHALL BE NO STAY GRANTED OF SUCH TRIAL WITH-
   13  OUT AN ORDER TO RESPONDENT TO PAY RENT OR USE AND OCCUPANCY DUE PURSUANT
   14  TO THIS SUBDIVISION AND RENT OR USE AND OCCUPANCY AS IT BECOMES DUE.
   15    (III) THE COURT SHALL NOT EXTEND ANY TIME PROVIDED  FOR  SUCH  DEPOSIT
   16  UNDER THIS SUBDIVISION WITHOUT THE CONSENT OF THE PETITIONER.
   17    (IV)  UPON  THE  ENTRY  OF  THE  FINAL JUDGMENT IN THE PROCEEDING SUCH
   18  DEPOSITS SHALL BE CREDITED AGAINST  ANY  JUDGMENT  AMOUNT  AWARDED  AND,
   19  WITHOUT FURTHER ORDER OF THE COURT, BE PAID IN ACCORDANCE WITH THE JUDG-
   20  MENT.
   21    (V)  THE PROVISIONS OF THIS PARAGRAPH REQUIRING THE DEPOSIT OF RENT OR
   22  USE AND OCCUPANCY AS IT BECOMES DUE SHALL NOT BE WAIVED BY THE COURT.
   23    {(c) The provisions of this subdivision shall not apply if the housing
   24  accommodation in question or the public  areas  pertaining  thereto  are
   25  charged  with  immediately  hazardous violations of record as defined by
   26  the New York city housing maintenance code.}
   27    (d) The court may dismiss any summary proceeding without prejudice and
   28  with costs  to  the  respondent  by  reason  of  excessive  adjournments
   29  requested by the petitioner.
   30    (e)  The  provisions  of this subdivision shall not be construed as to
   31  deprive a {tenant} RESPONDENT of a trial of any  {summary  proceeding}
   32  DEFENSES OR COUNTERCLAIMS IN A SEPARATE ACTION IF SUCH DEFENSES OR COUN-
   33  TERCLAIMS ARE DISMISSED WITHOUT PREJUDICE.
   34    S  36-a.  Section  14 of the public housing law is amended by adding a
   35  new subdivision 5 to read as follows:
   36    5. IN ORDER TO EFFECTUATE THE COLLECTION, ADMINISTRATION  AND  PAYMENT
   37  OF  RENT PAYMENTS PURSUANT TO ARTICLE SEVEN OF THE REAL PROPERTY ACTIONS
   38  AND PROCEEDINGS LAW, THE  DIVISION  OF  HOUSING  AND  COMMUNITY  RENEWAL
   39  SHALL,  IN  COOPERATION  WITH THE OFFICE OF COURT ADMINISTRATION, SELECT
   40  THROUGH A COMPETITIVE PROCESS, APPROVED  BY  THE  STATE  COMPTROLLER,  A
   41  COMPETENT  FINANCIAL  INSTITUTION FOR THE DEPOSIT AND MANAGEMENT OF SUCH
   42  PAYMENTS.
   43    S 37. The real property actions and  proceedings  law  is  amended  by
   44  adding a new section 747-a to read as follows:
   45    S 747-A. JUDGMENTS; STAYS. IN THE CITY OF NEW YORK, IN ANY NON-PAYMENT
   46  SUMMARY  PROCEEDING  IN  WHICH THE RESPONDENT HAS APPEARED AND THE PETI-
   47  TIONER HAS OBTAINED A JUDGMENT PURSUANT TO SECTION SEVEN HUNDRED  FORTY-
   48  SEVEN  OF  THIS  ARTICLE  AND MORE THAN FIVE DAYS HAS ELAPSED, THE COURT
   49  SHALL NOT GRANT A STAY OF THE ISSUANCE OR EXECUTION OF  ANY  WARRANT  OF
   50  EVICTION  NOR  STAY THE RE-LETTING OF THE PREMISES UNLESS THE RESPONDENT
   51  SHALL HAVE EITHER ESTABLISHED TO THE SATISFACTION  OF  THE  COURT  BY  A
   52  SWORN  STATEMENT AND DOCUMENTARY PROOF THAT THE JUDGMENT AMOUNT WAS PAID
   53  TO THE PETITIONER PRIOR TO THE EXECUTION OF THE WARRANT OR THE  RESPOND-
   54  ENT HAS DEPOSITED THE FULL AMOUNT OF SUCH JUDGMENT WITH THE CLERK OF THE
   55  COURT.

       S. 5553                            27                            A. 8346

    1    S  38.  Subdivision  b of section 26-408 of the administrative code of
    2  the city of New York is amended by adding a new paragraph 6 to  read  as
    3  follows:
    4    (6)  NEITHER  THE  PROVISIONS OF SUBPARAGRAPH (A) OF PARAGRAPH FOUR OF
    5  THIS SUBDIVISION, WHICH REQUIRE THAT THE NEW BUILDING CONTAIN MORE  THAN
    6  OR  EQUAL  TO THE NUMBER OF HOUSING ACCOMMODATIONS THAT ARE CONTAINED IN
    7  THE STRUCTURE TO BE DEMOLISHED OR SUBSTANTIALLY ALTERED OR REMODELED NOR
    8  THE PROVISIONS OF PARAGRAPH FIVE OF THIS SUBDIVISION  SHALL  APPLY  WITH
    9  RESPECT  TO ANY BUILDING IN WHICH THERE REMAINS (A) THREE OR FEWER OCCU-
   10  PIED APARTMENTS WHICH CONSTITUTE TEN PERCENT OR LESS OF THE TOTAL DWELL-
   11  ING UNITS IN THE BUILDING OR (B) ONE OCCUPIED APARTMENT IF THE  BUILDING
   12  CONTAINS  TEN  OR  FEWER  APARTMENTS  BUT ONLY ON THE CONDITION THAT THE
   13  TENANT IS PROVIDED WITH THE RELOCATION, MOVING EXPENSE, STIPEND AND  ANY
   14  OTHER  BENEFITS  PROVIDED UNDER THE CORRESPONDING PROVISIONS OF THE RENT
   15  STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE.   IN THE  EVENT  OF  A
   16  SUBSTANTIAL  ALTERATION  OR  REMODELING OF A BUILDING FALLING WITHIN THE
   17  LIMITATIONS OF THIS PARAGRAPH, ALL OF THE RELOCATION  PROVISIONS  AVAIL-
   18  ABLE TO AN OWNER FOR DEMOLITION SHALL APPLY.
   19    S  39.    Subdivision  3  of section 235-b of the real property law is
   20  amended by adding a new paragraph (c) to read as follows:
   21    (C) WHERE THE PREMISES IS SUBJECT TO REGULATION PURSUANT TO THE  LOCAL
   22  EMERGENCY  HOUSING RENT CONTROL LAW, THE EMERGENCY TENANT PROTECTION ACT
   23  OF NINETEEN SEVENTY-FOUR, THE RENT STABILIZATION LAW OF NINETEEN HUNDRED
   24  SIXTY-NINE OR THE CITY RENT AND REHABILITATION LAW,  REDUCE  THE  AMOUNT
   25  AWARDED  HEREUNDER  BY THE TOTAL AMOUNT OF ANY RENT REDUCTION ORDERED BY
   26  THE STATE DIVISION OF HOUSING AND COMMUNITY  RENEWAL  PURSUANT  TO  SUCH
   27  LAWS OR ACT, AWARDED TO THE TENANT, FROM THE EFFECTIVE DATE OF SUCH RENT
   28  REDUCTION ORDER, THAT RELATES TO ONE OR MORE MATTERS FOR WHICH RELIEF IS
   29  AWARDED HEREUNDER.
   30    S  40.   Paragraph (b) of subdivision 5 of section 4 of chapter 274 of
   31  the laws of 1946, constituting the emergency housing rent  control  law,
   32  as  amended  by  chapter  337 of the laws of 1961, is amended to read as
   33  follows:
   34    (b) Whenever in the judgment of the commission such action  is  neces-
   35  sary  or  proper  in  order  to effectuate the purposes of this act, the
   36  commission may provide regulations to assure the maintenance of the same
   37  living space, essential services, furniture, furnishings  and  equipment
   38  as  were  provided  on  the  date  determining the maximum rent, and the
   39  commission shall have power by regulation or order to decrease the maxi-
   40  mum rent for any housing accommodation with respect to which  a  maximum
   41  rent is in effect, pursuant to this act if it shall find that the living
   42  space,  essential services, furniture, furnishings or equipment to which
   43  the tenant was entitled on such date has been decreased.  THE AMOUNT  OF
   44  THE  DECREASE IN MAXIMUM RENT ORDERED BY THE COMMISSION UNDER THIS PARA-
   45  GRAPH SHALL BE REDUCED BY ANY CREDIT, ABATEMENT OR OFFSET IN RENT  WHICH
   46  THE TENANT HAS RECEIVED PURSUANT TO SECTION TWO HUNDRED THIRTY-FIVE-B OF
   47  THE REAL PROPERTY LAW, THAT RELATES TO ONE OR MORE CONDITIONS COVERED BY
   48  SUCH ORDER.
   49    S  41.   Subdivision a of section 7 of section 4 of chapter 576 of the
   50  laws of 1974, constituting the emergency tenant protection act of  nine-
   51  teen seventy-four, is amended to read as follows:
   52    a.  In  order  to collect a rent adjustment authorized pursuant to the
   53  provisions of subdivision b of section four, the owner of housing accom-
   54  modations subject to this act located in a city having a  population  of
   55  less  than  one  million  or  a town or village must file with the state
   56  division of housing and community renewal  on  a  form  which  it  shall

       S. 5553                            28                            A. 8346

    1  prescribe,  a  written  certification  that  he  is maintaining and will
    2  continue to maintain all services furnished on the date upon which  this
    3  act  becomes  a law or required to be furnished by any law, ordinance or
    4  regulation  applicable  to the premises. In addition to any other remedy
    5  afforded by law, any tenant may apply to the state division  of  housing
    6  and community renewal for a reduction in the rent to the level in effect
    7  prior  to  its most recent adjustment, and the state division of housing
    8  and community renewal may so reduce the rent if it finds that the  owner
    9  has failed to maintain such services. The owner shall be supplied with a
   10  copy  of the application and shall be permitted to file an answer there-
   11  to. A hearing may be held upon the request of either party, or the state
   12  division of housing and community renewal may hold a  hearing  upon  its
   13  own  motion.  The  state  division  of housing and community renewal may
   14  consolidate the proceedings for two or more petitions applicable to  the
   15  same  building.  If  the state division of housing and community renewal
   16  finds that the owner has  knowingly  filed  a  false  certification,  it
   17  shall,  in  addition  to  abating  the  rent,  assess the owner with the
   18  reasonable costs of  the  proceeding,  including  reasonable  attorneys`
   19  fees,  and  impose  a penalty not in excess of two hundred fifty dollars
   20  for each false certification.   THE AMOUNT  OF  THE  REDUCTION  IN  RENT
   21  ORDERED  BY  THE  STATE  DIVISION OF HOUSING AND COMMUNITY RENEWAL UNDER
   22  THIS SUBDIVISION SHALL BE REDUCED BY ANY CREDIT, ABATEMENT OR OFFSET  IN
   23  RENT WHICH THE TENANT HAS RECEIVED PURSUANT TO SECTION TWO HUNDRED THIR-
   24  TY-FIVE-B  OF  THE REAL PROPERTY LAW, THAT RELATES TO ONE OR MORE CONDI-
   25  TIONS COVERED BY SUCH ORDER.
   26    S 42.  Section 26-514 of the administrative code of the  city  of  New
   27  York is amended to read as follows:
   28    S 26-514  Maintenance of services.  In order to collect a rent adjust-
   29  ment  authorized  pursuant to the provisions of subdivision d of section
   30  26-510 of this chapter an owner must file with  the  state  division  of
   31  housing  and  community  renewal, on a form which the commissioner shall
   32  prescribe, a written certification that he or  she  is  maintaining  and
   33  will  continue to maintain all services furnished on the date upon which
   34  the emergency tenant protection act of nineteen seventy-four  becomes  a
   35  law or required to be furnished by any state law or local law, ordinance
   36  or regulation applicable to the premises. In addition to any other reme-
   37  dy  afforded by law, any tenant may apply to the state division of hous-
   38  ing and community renewal, for a reduction in the rent to the  level  in
   39  effect  prior  to  its most recent adjustment and for an order requiring
   40  services to be maintained as provided in this section,  and the  commis-
   41  sioner shall so reduce the rent if it is found that the owner has failed
   42  to  maintain such services. The owner shall also be barred from applying
   43  for or collecting any further rent increases. The  restoration  of  such
   44  services  shall result in the prospective elimination of such sanctions.
   45  The owner shall be supplied with a copy of the application and shall  be
   46  permitted  to  file  an  answer  thereto. A hearing may be held upon the
   47  request of either party, or the commissioner may hold a hearing upon his
   48  or her own motion. The commissioner may consolidate the proceedings  for
   49  two or more petitions applicable to the same building or group of build-
   50  ings  or development. If the commissioner finds that the owner has know-
   51  ingly filed a false certification, it shall, in addition to abating  the
   52  rent,  assess  the  owner  with  the reasonable costs of the proceeding,
   53  including reasonable attorneys` fees, and impose a penalty not in excess
   54  of two hundred fifty dollars for each false certification.
   55   THE AMOUNT OF THE REDUCTION IN RENT ORDERED BY THE  STATE  DIVISION  OF
   56  HOUSING AND COMMUNITY RENEWAL UNDER THIS SUBDIVISION SHALL BE REDUCED BY

       S. 5553                            29                            A. 8346

    1  ANY  CREDIT,  ABATEMENT  OR OFFSET IN RENT WHICH THE TENANT HAS RECEIVED
    2  PURSUANT TO SECTION TWO HUNDRED THIRTY-FIVE-B OF THE REAL PROPERTY  LAW,
    3  THAT RELATES TO ONE OR MORE CONDITIONS COVERED BY SUCH ORDER.
    4    S  43.  Paragraph 2 of subdivision h of section 26-405 of the adminis-
    5  trative code of the city of New York is amended to read as follows:
    6    (2) Whenever in the judgment of such agency such action  is  necessary
    7  or  proper  in  order  to  effectuate the purposes of this chapter, such
    8  agency may provide regulations to assure the  maintenance  of  the  same
    9  living  space,  essential services, furniture, furnishings and equipment
   10  as were provided on the date determining  the  maximum  rent,  and  such
   11  agency  shall  have power by regulation or order to decrease the maximum
   12  rent or take action as provided in paragraph four of this subdivision  h
   13  for any housing accommodation with respect to which a maximum rent is in
   14  effect,  pursuant  to  this  chapter,  if  it shall find that the living
   15  space, essential services, furniture, furnishings or equipment to  which
   16  the tenant was entitled on such date have been decreased.  THE AMOUNT OF
   17  THE  REDUCTION  IN  MAXIMUM RENT ORDERED BY SUCH AGENCY UNDER THIS PARA-
   18  GRAPH SHALL BE REDUCED BY ANY CREDIT, ABATEMENT OR OFFSET IN RENT  WHICH
   19  THE TENANT HAS RECEIVED PURSUANT TO SECTION TWO HUNDRED THIRTY-FIVE-B OF
   20  THE  REAL PROPERTY LAW THAT RELATES TO ONE OR MORE CONDITIONS COVERED BY
   21  SUCH ORDER.
   22    S 43-a. Paragraph 6 of subdivision c of section 26-511 of the adminis-
   23  trative code of the city of New York, as amended by chapter 749  of  the
   24  laws of 1990, is amended to read as follows:
   25    (6)  provides  criteria whereby the commissioner may act upon applica-
   26  tions by owners for increases in  excess  of  the  level  of  fair  rent
   27  increase  established under this law provided, however, that such crite-
   28  ria shall provide (a) as to hardship applications, for  a  finding  that
   29  the level of fair rent increase is not sufficient to enable the owner to
   30  maintain  approximately  the same average annual net income (which shall
   31  be computed without regard to debt service, financing costs  or  manage-
   32  ment  fees)  for the three year period ending on or within six months of
   33  the date of an application pursuant to such criteria  as  compared  with
   34  annual  net income, which prevailed on the average over the period nine-
   35  teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
   36  first three years of operation if the building was completed since nine-
   37  teen  hundred  sixty-eight  or  for the first three fiscal years after a
   38  transfer of title to a new owner provided the new owner can establish to
   39  the satisfaction of the commissioner that he or she  acquired  title  to
   40  the  building as a result of a bona fide sale of the entire building and
   41  that the new owner is unable to obtain requisite records for the  fiscal
   42  years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
   43  despite diligent efforts to obtain same from predecessors in  title  and
   44  further  provided that the new owner can provide financial data covering
   45  a minimum of six years under his or  her  continuous  and  uninterrupted
   46  operation  of  the building to meet the three year to three year compar-
   47  ative test periods herein provided; and (b) as  to  completed  building-
   48  wide  major  capital  improvements, for a finding that such improvements
   49  are deemed depreciable under the Internal Revenue Code and that the cost
   50  is to be amortized over a seven-year period, based  upon  cash  purchase
   51  price  exclusive  of  interest  or  service  charges.    Notwithstanding
   52  anything to the contrary contained herein, no HARDSHIP increase  granted
   53  pursuant  to this paragraph shall, when added to the annual gross rents,
   54  as determined by the commissioner, exceed the sum  of,  (i)  the  annual
   55  operating  expenses, (ii) an allowance for management services as deter-
   56  mined by the commissioner, (iii) actual  annual  mortgage  debt  service

       S. 5553                            30                            A. 8346

    1  (interest  and  amortization)  on its indebtedness to a lending institu-
    2  tion, an insurance company, a retirement fund or welfare fund  which  is
    3  operated  under  the supervision of the banking or insurance laws of the
    4  state  of  New  York  or  the United States, and (iv) eight and one-half
    5  percent of that portion of the fair market value of the  property  which
    6  exceeds  the  unpaid  principal  amount  of  the  mortgage  indebtedness
    7  referred to in subparagraph (iii) of this paragraph.  Fair market  value
    8  for  the  purposes of this paragraph shall be six times the annual gross
    9  rent. The collection of any increase in  the  stabilized  rent  for  any
   10  apartment pursuant to this paragraph shall not exceed six percent in any
   11  year from the effective date of the order granting the increase over the
   12  rent  set  forth  in the schedule of gross rents, with collectability of
   13  any dollar excess above said sum to be spread forward in similar  incre-
   14  ments  and  added to the stabilized rent as established or set in future
   15  years;
   16    S 44. Any rule or regulation or form necessary for the  implementation
   17  of  this  act,  or  any  section of this act, is directed to be made and
   18  completed within 180 days after the effective date of this act.
   19    S 45. Severability. The provisions of this act shall be severable, and
   20  if the application of  any  clause,  sentence,  paragraph,  subdivision,
   21  section  or  part  of  this  act  to any person or circumstance shall be
   22  adjudged by any court of competent  jurisdiction  to  be  invalid,  such
   23  judgment shall not necessarily affect, impair or invalidate the applica-
   24  tion of any such clause, sentence, paragraph, subdivision, section, part
   25  of  this  act  or  remainder  thereof,  as the case may be, to any other
   26  person or circumstance, but shall be confined in its  operation  to  the
   27  clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
   28  directly involved in the controversy in which such judgment  shall  have
   29  been  rendered;  provided,  however,  that  in the event that the entire
   30  system of rent control or stabilization shall be finally adjudged inval-
   31  id or unconstitutional by a court of competent jurisdiction  because  of
   32  the  operation  of  any  provision  of this act, such provision shall be
   33  null, void and without effect and all the other provisions of  this  act
   34  which  can  be  given  effect without such invalid provision, as well as
   35  provisions of any other law, relating to the control of or stabilization
   36  of rent, as in effect prior to the effective date of  this  act  and  as
   37  otherwise  amended  by this act, shall continue in full force and effect
   38  for the period of effectiveness set forth in  sections  two,  three  and
   39  four of this act.
   40    S 46. This act shall take effect immediately; provided, however, that:
   41    1.  The  provisions of sections twenty-nine through thirty-four, thir-
   42  ty-nine through forty-three and forty-three-a of this act shall apply to
   43  any action or proceeding  pending  in  any  court  or  any  application,
   44  complaint or proceeding before an administrative agency on the effective
   45  date  of  this act, as well as any action or proceeding commenced there-
   46  after;
   47    2. sections two through six, nineteen and twenty of this act shall  be
   48  deemed to have been in full force and effect on and after June 15, 1997;
   49    3.  the  amendments  to  sections  seven, seven-a, twelve, fifteen and
   50  seventeen of this act shall apply to housing accommodations vacant on or
   51  after the effective date of this act; the application of  such  sections
   52  to  housing  accommodations vacant prior to such effective date shall be
   53  governed by the law in effect on such date;
   54    4. sections seven-b through eleven and thirteen, fourteen, sixteen and
   55  eighteen of this act shall take effect January 1, 1998;

       S. 5553                            31                            A. 8346

    1    5. sections twenty-eight, twenty-eight-a, twenty-eight-b  and  twenty-
    2  eight-c of this act shall take effect on the thirtieth day next succeed-
    3  ing  the  date on which this act shall have become a law and shall apply
    4  to acts or offenses committed on or after such date;
    5    6.  sections  twenty-eight, twenty-eight-a, twenty-eight-b and twenty-
    6  eight-c of this act shall expire and be deemed repealed after  June  15,
    7  2003;
    8    7.  sections  twenty-nine  and  thirty  of this act shall apply to any
    9  arrears presently due pursuant to the provisions of the emergency tenant
   10  protection act of nineteen seventy-four and the rent  stabilization  law
   11  of nineteen hundred sixty-nine;
   12    8. sections thirty-five, thirty-six and thirty-seven of this act shall
   13  take effect on the one hundred twentieth day next succeeding the date on
   14  which  this  act  shall  have  become  a  law  and  shall  apply  to all
   15  proceedings to recover possession of real property in New York  city  on
   16  or  after  such  date;  provided that prior to such date the court shall
   17  promulgate a brief notice which shall meet the requirements  of  section
   18  731  of  the  real  property  actions and proceedings law, as amended by
   19  section thirty-five of this act; and
   20    9. section thirty-nine of this act shall apply to orders of the  divi-
   21  sion  of housing and community renewal made before, on or after the date
   22  on which this act shall have become a law.

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