Title 26: Housing and Buildings

Chapter 2: Relocation Services

§ 26-301 Relocation of tenants.

  1. The commissioner of housing preservation and development shall have the power and it shall be his or her duty:

   (a) To provide and maintain tenant relocation services

      (i) for tenants of real property which the commissioner of housing preservation and development is authorized to maintain and supervise;

      (ii) for tenants of real property acquired for public purposes, excluding real property acquired by or on behalf of the New York city housing authority or the triborough bridge and tunnel authority;

      (iii) for tenants of real property located in any neighborhood improvement district designated by the city planning commission, where the displacement of such tenants results from the enforcement of any law, regulation, order or requirement pertaining to the maintenance and operation of such property or the health, safety and welfare of its occupants;

      (iv) when authorized by the mayor, for the tenants of any privately owned building or other improvement which is to be voluntarily rehabilitated in accordance with an urban renewal plan pursuant to law; and

      (v) for tenants of any privately owned building where such tenants vacate such building during a period when any law, regulation, order or requirement pertaining to the maintenance or operation of such building or the health, safety and welfare of its occupants requires such occupants to vacate such building.

   Such services shall consist of such activities as such commissioner may deem necessary, useful or appropriate for the relocation of such tenants, including but not limited to the gathering and furnishing of information as to suitable vacant accommodations, the making of studies and surveys for the purpose of locating such accommodations and the provision of facilities for the registration of such accommodations with the department of housing preservation and development by owners, lessors and managing agents of real property and others. Such commissioner shall not impose any deadline or limitation of time in which a tenant may apply for relocation services pursuant to subparagraph (v) of this paragraph.

   (b) Subject to the approval of the mayor, to fix and promulgate and from time to time amend a schedule of payments to be made to or for the benefit of and to aid in the relocation of tenants. Such schedule with respect to payments resulting from or relative to state or state-aided programs or activities within the city of New York shall also be subject to the approval of the director of the state division of the budget and of the head of the state department or agency having jurisdiction over such program, activity or aid. Such schedule shall provide for equal treatment of tenants under similar circumstances, shall be applicable as herein provided and may include but need not be limited to payments to be made to such tenants to induce their voluntary removal, moving expenses and expenses of redecorating accommodations to which such tenants are relocated and payments to persons for the services of finding accommodations to which such tenants are to be relocated. Such schedule may include maximum or minimum payments, or both. The acceptance of a payment provided for under such schedule by a landlord, owner or authorized agent shall not be deemed a violation of any rent regulation or statutory prohibition to the contrary.

   (c) Subject to the approval of the mayor, to adopt and promulgate and from time to time amend supplementary rules and regulations not inconsistent with the provisions of this section in regard to relocation practices and procedures, applicable as herein provided.

   (d) To schedule and coordinate the tenant relocation operations of agencies, persons, firms and corporations to which the rules and regulations promulgated pursuant to this section are applicable.

   (e) To review conditions of city-owned dwellings used for residential purposes and, upon submission of a report by two qualified employees of the agency following a personal inspection, setting forth a finding that any such dwelling is in condition which endangers the life, health or safety of the occupants, and if he or she accepts such report, the commissioner may certify that the conditions in the dwelling are such that they require that the dwelling be vacated in which event he or she shall:

      (i) order such dwelling to be vacated by its occupants upon no less than thirty days written notice to such occupants; and

      (ii) provide relocation services and allowances for occupants who relocate pursuant to any such order and the regulations promulgated by the department.

  1. The commissioner shall have power, when authorized by the mayor, to let contracts for the furnishing of maintenance services, payments and benefits deemed necessary, useful or appropriate for the purpose of assisting in the relocation of tenants of real property mentioned in subparagraphs (i), (ii), (iii) and (iv) of paragraph (a) of subdivision one of this section, provided that payments to be made to or for the benefit of such tenants shall be those fixed and promulgated pursuant to paragraph (b) of subdivision one of this section.
  2. Notwithstanding any other provisions of law, the schedule promulgated pursuant to paragraph (b) of subdivision one of this section and the rules and regulations promulgated pursuant to paragraph (c) of subdivision one of this section shall, to the extent to which they are not inconsistent with any federal act or regulation issued pursuant thereto, be applicable to every agency and public corporation engaged in the relocation of tenants including, but not limited to, the department of housing preservation and development, the New York city housing authority and the triborough bridge and tunnel authority, and shall also be applicable, as therein provided and to the extent to which they are not inconsistent with any federal act or regulation issued pursuant thereto, to every person,firm or corporation whose relocation activities are subject to the supervision of the department pursuant to section 26-302 of this chapter provided, however, that where the commissioner furnishes relocation services to any tenants pursuant to the provisions of subparagraph (iv) of paragraph (a) of subdivision one of this section, such schedule shall be applicable to the person, firm or corporation which has contracted with the city for the rehabilitation of the building or other improvement occupied by such tenants, and such person, firm or corporation shall make payments to or for the benefit of such tenants in accordance with such schedule, subject to adjustment as to payments with respect to which federal reimbursement is provided.
  3. The commissioner shall have the power to investigate, examine and inspect relocation operations which are subject to the provisions of this section.
  4. The commissioner shall annually submit to the mayor, the board of estimate, and the council a detailed report on tenant relocation activities which are subject to the provisions of this section and recommendations in regard thereto and shall coordinate the efforts of and consider the reports, recommendations and suggestions of public and private agencies and civic groups in regard thereto.
    1. There shall be an interagency relocation coordinating committee, which shall consist of a deputy mayor designated by the mayor, and representatives of the department of buildings, the department of city planning, department of health and mental hygiene, the department of housing preservation and development, the New York city housing authority, the commission on human rights, the board of education, the triborough bridge and tunnel authority and the department of social services. Each such board, authority, commission or agency and the head of each such department shall appoint as a representative one officer or employee who is a member of the staff of such board, authority, commission, department or agency and is qualified to participate in the functions of the committee as herein prescribed. Such representatives shall represent their respective agencies as members of the committee. The deputy mayor designated by the mayor as a member of such committee shall be its chairperson. It shall advise the commissioner of housing preservation and development for the purpose of assisting the commissioner in developing a relocation program for the city which will best serve the public interest. The members of the committee shall serve as such without additional compensation.

   b. Notwithstanding any other provisions of law, no officer or employee of the city or other public officer or employee shall be ineligible for appointment or service as a member of the committee and any such officer or employee may accept any such appointment and serve as such member without forfeiture of any other city or public office or any other city position or other position of public employment by reason thereof.

    1. The commissioner of housing preservation and development may require that a tenant of a privately owned building provide verification of occupancy in order to receive relocation services pursuant to subparagraph (v) of paragraph (a) of subdivision 1 of this section. If the commissioner establishes such a requirement, the commissioner shall establish a system under which such tenant is provided at least two methods to verify such occupancy, including the following two methods:

      (i) submission to the commissioner of a lease, sublease or license agreement verifying that the tenant resides at such building;

      (ii) submission to the commissioner of any two of the following documents:

         (A) a valid government-issued identification listing such building as such tenant’s address;

         (B) a valid record from any government agency listing such building as such tenant’s address;

         (C) a valid record relating to medical treatment, including prescriptions, that show such building as such tenant’s address;

         (D) a notarized written statement from the owner of such building verifying that such tenant resides at such building, provided, however, that a statement by such owner stating that such tenant does not reside at such building shall not be used to prevent such tenant from receiving relocation assistance;

         (E) a valid utility bill addressed to such tenant at such building;

         (F) a notarized statement from a third party, non-governmental service provider, written on the provider’s official letterhead, verifying that services were provided to such tenant and showing that such tenant resides at such building;

         (G) any other form of verification that the commissioner of housing preservation and development may deem appropriate.

   (b) The department of housing preservation and development shall attempt to obtain the records described in clause (B) of subparagraph (ii) of paragraph a of this subdivision from the department of social services/human resources administration where applicable to such tenant, provided that the tenant signs any necessary release as determined by the department of housing preservation and development.

   (c) The commissioner of housing preservation and development shall provide any such tenant who is denied such services with (i) written notice of such decision, (ii) the basis for such decision and (iii) information on how to appeal such decision.

§ 26-302 Supervision of relocation activities of developers.

The commissioner of housing preservation and development shall supervise the tenant relocation activities of any party to the contract with the city which requires such party to develop any real property in accordance with the terms of such contract, in any case where the contract provides that the commissioner shall exercise such supervision.

§ 26-303 Relocation advisory commission.

There shall be a relocation advisory commission composed of fifteen members, who shall be appointed by the mayor. The members of the advisory commission shall hold office for one year terms and shall serve without compensation. In making such appointments, due consideration shall be given to the recommendations made by representative associations, civic and professional groups concerned with or engaged in the field of tenant relocation generally.

§ 26-304 Powers and duties.

The relocation advisory commission shall meet at least once a month. It shall be informed by the commissioner of housing preservation and development of, and advise him or her on, matters of procedure and policy with respect to the relocation of tenants of real property over which the department has relocation jurisdiction.

§ 26-305 Expenses of relocation pursuant to vacate order.

  1. Whenever the department of housing preservation and development has incurred expenses in providing relocation services for tenants pursuant to subparagraph (v) of paragraph (a) of subdivision one of section 26-301 of this chapter, the department shall be entitled to reimbursement of such expenses from the owner of the building from which such tenants were relocated, if the conditions giving rise to the need for such relocation arose as a result of the negligent or intentional acts of such owner, or as a result of his or her failure to maintain such dwelling in accordance with the standards prescribed by the housing or health code governing such dwelling. “Owner” for purposes of this section shall mean and include the owner or owners of the freehold of the premises or lesser estate therein, a mortgagee or vendee in possession, assignee of rents, receiver, executor, trustee, lessee, agent, or any other person, firm or corporation, directly or indirectly in control of a dwelling.
  2. The expenses incurred for which payment to the department is due under the provisions of this section shall include but not be limited to departmental costs, bonuses, moving expenses or other reasonable allowances given to induce tenants to relocate voluntarily.
  3. The department may bring an action against the owner for the recovery of such expenses. The institution of such action shall not suspend or bar the right to pursue any other remedy provided by this section or any other law for the recovery of such expenses.
  4. To the extent that such expenses are not recovered by the department, they shall, except as herein provided, constitute a lien or liens upon such building and the lot upon which it stands, governed by the provisions of law regulating mechanics liens.

   (a) No such lien shall be valid for any purpose until the department shall file a notice of lien containing the same particulars as are required to be stated with reference to mechanics liens, with the further statement that the expenses had been incurred for relocation services provided pursuant to subparagraph (v) of paragraph (a) of subdivision one of section 26-301 of this chapter together with a statement of such expenses. The department may file one or more such liens for relocation expenses incurred with respect to any building within one year of incurring any such expenses. In computing such one year period, the latest date on which any expense in relation to which such notice was filed has been incurred shall be deemed the date on which all of the expenses stated in such notice were incurred.

   (b) Such lien or liens shall continue for a period of ten years from the time of filing of notice thereof, unless proceedings are in the meantime taken to enforce or discharge such lien or liens, which proceedings may be taken at any time during the continuance of such lien or liens or unless an order is granted within ten years from the time of the filing of any such lien or liens by a court of record or a judge or justice thereof continuing such lien or liens, in which case such lien or liens shall be redocketed as of the date of granting such order and a statement made continuing such lien or liens by virtue of such order. No lien shall be continued by such order for more than ten years from the granting thereof, but a new order and entry may be made in each successive ten-year period. Any judgment in a proceeding to enforce or discharge such lien shall constitute a lien in the same manner and from the same date as the original lien. The initiation of any such proceedings shall not suspend or bar the right to pursue any other remedy provided by this section or any other law for the recovery of such expenses.

   (c) Notwithstanding anything to the contrary in paragraph b of this subdivision, a lien which already exists and is currently docketed on the effective date of the local law that added this paragraph shall be deemed continued for a period of ten years commencing from the date of the last renewal or docketing of said lien, whichever is later.

Chapter 3: Rent Control

§ 26-401 Declaration and findings.

  1. The council hereby finds that a serious public emergency continues to exist in the housing of a considerable number of persons in the city, which emergency was created by war, the effects of war and the aftermath of hostilities; that such emergency necessitated the intervention of federal, state and local government in order to prevent speculative, unwarranted and abnormal increases in rents; that there continues to exist an acute shortage of dwellings; that unless residential rents and evictions continue to be regulated and controlled, disruptive practices and abnormal conditions will produce serious threats to the public health, safety and general welfare; that to prevent such perils to health, safety and welfare, preventive action through enactment of local legislation by the council continues to be imperative; that such action, as a temporary measure to be effective until it is determined by the council that such emergency no longer exists, is necessary in order to prevent exactions of unjust, unreasonable and oppressive rents and rental agreements and to forestall profiteering, speculation and other disruptive practices tending to produce threats to the public health; that the transition from regulation to a normal market of free bargaining between landlord and tenant, while still the objective of state and city policy, must be administered with due regard for such emergency; that in order to prevent uncertainty, hardship and dislocation, the provisions of this chapter are declared to be necessary and designed to protect the public health, safety and general welfare.
  2. The council further declares that it is city policy to utilize the powers conferred by this chapter, in a manner consistent with the purposes and provisions thereof, to encourage and promote the improvement and rehabilitation of the housing accommodations subject to control hereunder, for the purpose of protecting the public health, safety and general welfare.

§ 26-402 Short title.

This chapter shall be known and may be cited as the city rent and rehabilitation law.

§ 26-403 Definitions.

When used in this chapter, unless a different meaning clearly appears from the context, the following terms shall mean and include:

  1. Administrator. The commissioner of the state division of housing and community renewal.
  2. City rent agency. The state division of housing and community renewal.
  3. “Documents.” Records, books, accounts, correspondence, memoranda and other documents, drafts and copies of any of the foregoing.
  4. “Federal act.” The Emergency Price Control Act of nineteen hundred forty-two, and as thereafter amended and as superseded by the Housing and Rent Act of nineteen hundred forty-seven, and as the latter was thereafter amended prior to May first, nineteen hundred fifty, and regulations adopted pursuant thereto.
  5. “Housing accommodation.”

   1. Except as otherwise provided in paragraph two of this subdivision e, any building or structure, permanent or temporary, or any part thereof, occupied or intended to be occupied by one or more individuals as a residence, home, sleeping place, boarding house, lodging house or hotel, together with the land and buildings appurtenant thereto, and all services, privileges, furnishings, furniture and facilities supplied in connection with the occupation thereof, and any plot or parcel of land (as distinguished from any building constructed or placed thereon) which is not owned by the city and which was rented prior to May first, nineteen hundred fifty, for the purpose of permitting the tenant thereof to construct his or her own private dwelling (as such term “private dwelling” is defined in subdivision six of section four of the multiple dwelling law) thereon and on which there exists such a private dwelling owned and occupied by a tenant of such plot or parcel, or on or after July first, nineteen hundred seventy-one such private dwelling is owned and occupied by a member of the tenant’s immediate family provided that the member of the tenant’s immediate family was in occupancy of the private dwelling with the tenant prior to the transfer of title and possession for a continuous period of two years, including:

      (a) Entire structures or premises as distinguished from the individual housing accommodations contained therein, wherein twenty-five or less rooms are rented or offered for rent by any lessee, sublessee, or other tenant of such entire structure or premises; and

      (b) Housing accommodations which, under subparagraph (i) of paragraph two of this subdivision e, are or at any time become exempt from or not subject to control and which, while in such status, are certified by a city agency having jurisdiction to be a fire hazard or in a continued dangerous condition or detrimental to life or health; and the subsequent removal of the conditions on which such certification is based shall not cause any such housing accommodation to become exempt from or not subject to control; and

      (c) Notwithstanding any other provision of this chapter, all housing accommodations in any multiple dwelling aided by a loan made by the city under article eight of the private housing finance law; provided that where any such housing accommodation, if this subparagraph (c) were not applicable thereto, would not be subject to rent control under this chapter and the regulations thereunder prior to the date on which rent control with respect to such multiple dwelling is required by the provisions of such article eight to begin, this subparagraph (c) shall operate to make such housing accommodation subject to rent control under this chapter and the regulations thereunder only on and after such date; and provided further that if any such housing accommodation, on the date on which rent control with respect thereto ceases to be required by such article eight, would not be subject to rent control, or would be eligible for decontrol on the landlord’s application, under the provisions of this chapter and the regulations thereunder, if this subparagraph (c) were not applicable thereto, then such housing accommodation, after such date, shall not be subject to rent control, or shall be eligible for decontrol, as the case may be, in the same manner as if this subparagraph (c) had not been applicable to such housing accommo- dation.

   2. The term “housing accommodation” shall not include:

      (a) structures in which all of the housing accommodations are exempt or not subject to control under this chapter or any regulation issued thereunder; or

      (b) a hospital, convent, monastery, asylum, public institution, or college or school dormitory or any institution operated exclusively for charitable or educational purposes on a non-profit basis; or

      (c) notwithstanding any previous order, finding, opinion or determination of the state rent commission, housing accommodations in any establishment which on March first, nineteen hundred fifty, was and still is commonly regarded as a hotel in the community in which it is located and which customarily provides hotel services such as maid service, furnishing and laundering of linen, telephone and secretarial or desk service, use and upkeep of furniture and fixtures and bellboy service, provided, however, that the term “hotel” shall not include any establishment which is commonly regarded in the community as a rooming house, nor shall it include any establishment not identified or classified as a “hotel”, “transient hotel” or “residential hotel” pursuant to the federal act, irrespective of whether such establishment either provides some services customarily provided by hotels, or is represented to be a hotel, or both; and provided further that housing accommodations in hotels which have been and still are occupied by a tenant who has resided in such hotel continuously since December second, nineteen hundred forty-nine, so long as such tenant occupies the same, shall continue to remain subject to control under this chapter; or

      (d) Any motor court, or any part thereof; any trailer or trailer space used exclusively for transient occupancy or any part thereof (provided that nothing herein contained shall be construed as legalizing or authorizing any use or occupancy of a trailer or trailer space where prohibited by law); or any tourist home serving transient guests exclusively, or any part thereof; or

      (e) Nonhousekeeping, furnished housing accommodations, located within a single dwelling unit not used as a rooming or boarding house, but only if: (1) no more than two tenants for whom rent is paid (husband and wife being considered one tenant for this purpose), not members of the landlord’s immediate family, live in such dwelling unit; and (2) the remaining portion of such dwelling unit is occupied by the landlord or his or her immediate family; or

      (f) Housing accommodations owned and operated by the United States, the state of New York, or the New York city housing authority; or owned by the city and under the jurisdiction of the city department of housing preservation and development pursuant to the New York city charter; or owned and operated by the city; or housing accommodations in buildings in which rentals are fixed by or subject to the supervision of the state commissioner of housing and community renewal;

      (g) Housing accommodations in buildings operated exclusively for charitable purposes on a non-profit basis; or

      (h) Except as otherwise provided in item six of subparagraph (i) of this paragraph two, housing accommodations which were completed on or after February first, nineteen hundred forty-seven, provided, however, that, the former structure or any lesser portion thereof, was not vacated, on or after the effective date of this first provision of this subparagraph (h), other than by voluntary surrender of possession or in the manner provided in this chapter, and provided further that maximum rents established under the veterans’ emergency housing act, for priority constructed housing accommodations completed on or after February first, nineteen hundred forty-seven, shall continue in full force and effect, if such accommodations are being rented to veterans of world war II or their immediate families who, on June thirtieth, nineteen hundred forty-seven, either occupied such housing accommodations or had a right to occupy such housing accommodations at any time on or after July first, nineteen hundred forty-seven, under any agreement whether written or oral; or

      (i) Except as otherwise provided in subparagraphs (b) and (c) of paragraph one of this subdivision e:

         (1) Housing accommodations created by a change from a non-housing use to a housing use on or after February first, nineteen hundred forty-seven, but only if the space comprising such accommodations was devoted to a non-housing use on February first, nineteen hundred forty-seven; or

         (2) Additional housing accommodations, other than rooming house accommodations, created by conversion on or after February first, nineteen hundred forty-seven; provided, however, that any housing accommodations created as a result of any such conversion on or after May first, nineteen hundred fifty, shall continue to be subject to rent control as provided for herein unless the state rent commission, prior to May first, nineteen hundred sixty-two, issued an order decontrolling them, or the city rent agency, on or after such date, issues an order decontrolling them; and the city rent agency shall issue such an order if there has been a structural change involving substantial alterations or remodeling and such change has resulted in additional housing accommodations consisting of self-contained family units as defined by regulations issued by the city rent agency, with due regard for the shortage of housing accommodations suitable for family occupancy and for the purposes of this chapter in relation thereto; and provided further, that any such order of decontrol of the state rent commission or the city rent agency shall remain effective after April thirtieth, nineteen hundred sixty-two only so long as the housing accommodations are not occupied for other than single family occupancy; and provided further, that any such order of decontrol shall not apply to that portion of the original housing accommodations occupied by a tenant in possession at the time of the conversion, but only so long as that tenant continues in occupancy; and provided further, that no such order of decontrol shall be issued unless such conversion occurred after the entire structure, or any lesser portion thereof as may have been thus converted, was vacated by voluntary surrender of possession, or in the manner provided in this chapter, or (where vacated prior to May first, nineteen hundred sixty-two) in the manner provided by section five of the state rent act; and provided further that notwithstanding any of the foregoing provisions of this item two, no such order of decontrol shall be issued with respect to housing accommodations of any type resulting from conversion, after April thirtieth, nineteen hundred sixty-two, to rooming house accommodations or to single room occupancy accommodations, and such resulting accommodations shall continue to be housing accommodations subject to rent control under this chapter and the regulation thereunder; or

         (3) Housing accommodations rented after April first, nineteen hundred fifty-three, which were or are continuously occupied by the owner thereof for a period of one year prior to the date of renting; provided, however, that this item three shall not apply where the owner acquired possession of the housing accommodation after the issuance of a certificate of eviction under subdivision two of section five of the state rent act or under subdivision b of section 26-408 of this chapter within the two year period immediately preceding the date of such renting, and provided further that this item three shall not apply to any such housing accommodation rented on or after May first, nineteen hundred sixty-two, where an exemption of any housing accommodation in the same building was obtained under paragraph (h) of subdivision two of section two of the state rent act or has been previously obtained under this item three; and provided further, that this exemption shall remain effective only so long as the housing accommodations are not occupied for other than single family occupancy; or

         (4) Housing accommodations in one or two family houses which were or shall become vacant on or after April first, nineteen hundred fifty-three; provided, however, that this exemption shall remain effective only so long as the housing accommodations are not occupied for other than single family occupancy; or

         (6) (i) Such housing accommodations resulting from substantial demolition (as such accommodations are defined in this item six), as are decontrolled by order of the city rent agency pursuant to this item six; provided that all housing accommodations resulting from substantial demolition which are not so decontrolled shall continue to be housing accommodations subject to rent control under this chapter and the regulations thereunder.

            (ii) The term “housing accommodation resulting from substantial demolition”, as used herein, shall mean any housing accommodation (a) which is created on or after May first, nineteen hundred sixty-two, as a result of the substantial demolition of a multiple dwelling and the reconstruction of such building in such manner as to retain any portion thereof existing prior to such demolition, and (b) which is so created after the issuance of one or more certificates permitting the eviction of any tenant or tenants of such multiple dwelling for the purpose of effecting such demolition.

            (iii) No order shall be issued under this item six decontrolling any housing accommodation resulting from substantial demolition unless, after such reconstruction, all housing accommodations in the building are self-contained family units as defined by regulations issued by the city rent agency, with due regard for the shortage of housing accommodations suitable for family occupancy and for the purposes of this chapter in relation thereto.

            (iv) The city rent agency shall issue regulations, with due regard for such shortage and purposes, specifying minimum requirements for qualifying any housing accommodation resulting from substantial demolition as suitable for occupancy by larger families (including, with respect to the individual unit, but not limited to, number of rooms, space suitable for sleeping purposes and total floor area) and likewise prescribing, subject to such variations and classifications as such agency may determine to be reasonably necessary, the ratio between the total number of housing accommodations resulting from substantial demolition in the building, and the number of such accommodations which must meet such requirements for larger family occupancy, in order that a decontrol order may be granted hereunder.

            (v) The city rent agency shall issue an order decontrolling all of the housing accommodations resulting from substantial demolition in the building, if such accommodations meet the requirements of sub-item (iii) of this item six, and if the prescribed proportion thereof meets the requirements of sub-item (iv) of this item six for larger family occupancy; provided that (a) if all such accommodations meet the requirements of such sub-item (iii), but less than the prescribed proportion thereof meet the requirements of such sub-item (iv), then the city rent agency shall issue an order decontrolling only those accommodations which meet the requirements of both such sub-items; and (b) any order of decontrol issued under this item six shall remain effective only so long as the accommodations decontrolled by such order are not occupied for other than single family occupancy.

            (vi) In the case of any housing accommodations vacated on or after March twenty-sixth, nineteen hundred sixty-four, no order of decontrol shall be issued under this item six for any housing accommodations resulting from substantial demolition thereof unless such reconstruction occurred after the structure was vacated by voluntary surrender of possession, or in the manner provided in this chapter; or

         (7) (i) Individual housing accommodations having unfurnished maximum rents of two hundred and fifty dollars or more per month as of April first, nineteen hundred sixty, or furnished maximum rents of three hundred dollars or more per month as of April first, nineteen hundred sixty, which are or become vacant on or after the effective date of this item seven; or

            (ii) On and after October first, nineteen hundred sixty-four individual housing accommodations having unfurnished maximum rents of three hundred dollars or more per month as of April first, nineteen hundred sixty, or furnished maximum rents of three hundred and sixty dollars or more per month as of April first, nineteen hundred sixty; provided, however, that where any such housing accommodation is occupied by a tenant whose household contains one or more children attending an elementary or secondary school, such housing accommodation shall continue to remain subject to control under this chapter and the regulations thereunder until June thirtieth, nineteen hundred sixty-five; and provided further, that where such housing accommodation on March twenty-sixth, nineteen hundred sixty-four is occupied by a tenant whose household contains four or more related persons, it shall continue to remain subject to control under this chapter and the regulations thereunder so long as such tenant remains in occupancy; or

            (iii) On and after April first, nineteen hundred sixty-five individual housing accommodations having unfurnished maximum rents of two hundred and fifty dollars to two hundred ninety-nine dollars and ninety-nine cents, inclusive, per month as of April first, nineteen hundred sixty, or furnished maximum rents of three hundred dollars to three hundred fifty-nine dollars and ninety-nine cents inclusive, per month as of April first, nineteen hundred sixty; provided, however, that where any such housing accommodation is occupied by a tenant whose household contains one or more children attending an elementary or secondary school, such housing accommodation shall continue to remain subject to control under this chapter and the regulations thereunder until June thirtieth, nineteen hundred sixty-five; and provided further, that where such housing accommodations on March twenty-sixth, nineteen hundred sixty-four is occupied by a tenant whose household contains four or more related persons, it shall continue to remain subject to control under this chapter and the regulations thereunder so long as such tenant remains in occupancy.

            (iv) The exemptions provided for in this item seven shall remain effective only so long as the housing accommodations are not occupied for other than single family occupancy.

            (v) The term “related persons”, as used in this item seven, shall be limited to the tenant and a parent, grandparent, child, stepchild, grandchild, brother or sister of the tenant or of the tenant’s spouse or the spouse of any of the foregoing, who customarily occupied the housing accommodation on and before the effective date of this item seven. The tenant’s spouse or an unmarried child or grandchild of the tenant who temporarily resided elsewhere on the effective date of this item seven because of attendance at an educational institution or service in the armed forces of the United States shall be deemed to be a related person in occupancy.

         (8) No more than two housing accommodations in any one year period in an owner-occupied structure containing six or fewer housing accommodations which are or become vacant on or after August first, nineteen hundred seventy, by voluntary surrender or pursuant to section 26-408 of this chapter; provided, however, that this exemption shall remain effective only so long as the housing accommodations are not occupied for other than residential dwelling purposes; and provided further, that if the city rent agency shall make a finding of harassment in violation of subdivision d of section 26-412 of this chapter with respect to a housing accommodation in a structure containing six or less housing accommodations, in addition to all other criminal or civil fines, penalties, injunctive relief and enforcement penalties and remedies authorized by section 26-413 of this chapter, no housing accommodation in such structure shall be decontrolled pursuant to this item eight until a minimum period of three years has elapsed since the making of such finding of harassment by the city rent agency. Structures containing six or fewer housing accommodations shall be considered to be structures containing six or fewer housing accommodations for the purposes of this item eight, notwithstanding that such structures shall contain commercial accommodations in addition to such housing accommodations.

         (9) Housing accommodations which became vacant on or after June thirtieth, nineteen hundred seventy-one, provided, however, that this exemption shall not apply or become effective with respect to housing accommodations which the commissioner determines or finds became vacant because the landlord or any person acting on his or her behalf, with intent to cause the tenant to vacate, engaged in any course of conduct (including but not limited to, interruption or discontinuance of essential services) which interfered with or disturbed or was intended to interfere with or disturb the comfort, repose, peace or quiet of the tenant in his or her use or occupancy of the housing accommodations and provided, further, however, that nothing contained herein shall be deemed to preclude the applicability to such housing accommodations of the emergency tenant protection act of nineteen seventy-four.

         (10) Housing accommodations not occupied by the tenant, not including subtenants or occupants, as his or her primary residence, as determined by a court of competent jurisdiction. For the purposes of determining primary residency, a tenant who is a victim of domestic violence, as defined in section four hundred fifty-nine-a of the social services law, who has left the unit because of such violence, and who asserts an intent to return to the housing accommodation shall be deemed to be occupying the unit as his or her primary residence. No action or proceeding shall be commenced seeking to recover possession on the ground that a housing accommodation is not occupied by the tenant as his or her primary residence unless the owner or lessor shall have given thirty days notice to the tenant of his or her intention to commence such action or proceeding on such grounds.

      (j) Upon the issuance of an order of deregulation by the division, housing accommodations which: (1) are occupied by persons who have a total annual income, as defined in and subject to the limitations and process set forth in section 26-403.1 of this chapter, in excess of the deregulation income threshold, as defined in section 26-403.1 of this chapter, in each of the two preceding calendar years; and (2) have a maximum rent that equals or exceeds the deregulation rent threshold, as defined in section 26-403.1 of this chapter. Provided however, that this exclusion shall not apply to housing accommodations which became or become subject to this law by virtue of receiving tax benefits pursuant to section four hundred eighty-nine of the real property tax law.

      (k) [Repealed.]

  1. “Landlord.” An owner, lessor, sublessor, assignee, or other person receiving or entitled to receive rent for the use or occupancy of any housing accommodation or an agent of any of the foregoing.
  2. “Maximum rent.” The maximum lawful rent for the use of housing accommodations. Maximum rents may be formulated in terms of rents and other charges and allowances.
  3. “Person.” An individual, corporation, partnership, association, or any other organized group of individuals or the legal successor or representative of any of the foregoing.
  4. “Rent.” Consideration, including any bonus, benefit or gratuity demanded or received for or in connection with the use or occupancy of housing accommodations or the transfer of a lease of such housing accommodations.
  5. “State Enabling Act.” The local emergency housing rent control act.
  6. “State Rent Act.” The emergency housing rent control law.
  7. “State rent commission.” The temporary state housing rent commission created by the emergency housing rent control law.
  8. “Tenant.” A tenant, subtenant, lessee, sublessee, or other person entitled to the possession or to the use or occupancy of any housing accommodation.

§ 26-403.1 High income rent deregulation. [Repealed]

*§ 26-403.2 Increase in maximum collectable rent. [Repealed]* ::

§ 26-404 City rent agency; division of housing and community renewal.

The division of housing and community renewal shall have charge of and conduct through its own counsel any proceeding under this chapter of the code, except for the provisions of subdivision m of section 26-405 and section 26-406 of this chapter which shall be under the jurisdiction of the department of finance and such other agency as the mayor shall designate.

§ 26-405 General powers and duties of the city rent agency.

    1.    At the time this chapter shall become effective, the city rent agency shall establish maximum rents which, subject to the provisions of subdivision b of this section, shall be the maximum rents in effect on April thirtieth, nineteen hundred sixty-two pursuant to the state rent act and the regulations thereunder.

   (2) (a) Notwithstanding the foregoing provision of this subdivision, and except as provided in subparagraph (b) of this paragraph two, effective August first, nineteen hundred seventy, the maximum rent in effect on July thirty-first, nineteen hundred seventy shall be adjusted as follows:

         (i) For any individual housing accommodation for which one or more but less than two full fifteen per centum rent increases has been granted since May first, nineteen hundred fifty-three pursuant to former subparagraph (d) of paragraph one of subdivision g of this section the maximum rent shall be increased by eight per centum.

         (ii) For any individual housing accommodation for which no full fifteen per centum rent increase has been granted since May first, nineteen hundred fifty-three pursuant to former subparagraph (d) of paragraph one of subdivision g of this section the maximum rent shall be increased by fifteen per centum, except that if there was no such increase for any individual housing accommodation for which a first rent was established pursuant to former subdivision m of this section after July thirty-first, nineteen hundred sixty-five and before August first, nineteen hundred sixty-eight, the maximum rent shall be increased by five per centum, and except that if there was no such increase for any individual housing accommodation for which a first rent was established pursuant to such subdivision on or after August first, nineteen hundred sixty-eight there shall be no increase in maximum rent. On or after August first, nineteen hundred seventy, a landlord may file application for labor cost rent adjustment pursuant to subparagraph (l) of paragraph (1) of subdivision g of this section. In lieu of such labor cost rent adjustment, the landlord of a building with twenty or fewer housing accommodations shall have the option of filing for a five per centum increase in maximum rent for any individual housing accommodation for which two or more full fifteen per centum increases have been granted since May first, nineteen hundred fifty-three pursuant to former subparagraph (d) of paragraph one of subdivision g of this section. Nothing contained in this subparagraph (a) however, shall have the effect of establishing the maximum rent in an amount less than the maximum rent in effect on July thirty-first, nineteen hundred seventy nor of increasing by more than fifteen per centum the maximum rent for any housing accommodation.

      (b) Where the maximum rent in effect on July thirty-first, nineteen hundred seventy for any individual housing accommodation is less than sixty dollars per month such rent shall be increased effective August first, nineteen hundred seventy by ten dollars per month where the housing accommodation is comprised of three rooms or less and by fifteen dollars per month where the housing accommodation is comprised of more than three rooms.

      (c) Where a lease is in effect for any housing accommodation on August first, nineteen hundred seventy, no adjustment of maximum rent for such accommodation shall become effective until the expiration of such lease. Where a housing accommodation becomes vacant on or after August first, nineteen hundred seventy and before January first, nineteen hundred seventy-two by voluntary surrender of possession by the tenant the maximum rent shall be increased by no more than fifteen per centum over the maximum rent established for such accommodation at the time the vacancy occurred, provided that a report is filed with the city rent agency as prescribed by its regulations. If the city rent agency shall make a finding of harassment in violation of subdivision d of section 26-412 of this chapter for the purpose of obtaining such a vacancy, in addition to all other civil or criminal penalties, injunctive relief and enforcement remedies authorized by section 26-413 of this chapter, no housing accommodation in the building shall thereafter be entitled to the benefit of a rental increase as a result of becoming vacant between the aforesaid dates.

      (d) The total of (i) the increase pursuant to subparagraph (a) of this paragraph, or (ii) any increases granted between December thirty-first, nineteen hundred sixty-nine and December thirty-first, nineteen hundred seventy-one pursuant to subparagraph (a), (b), or (c) of paragraph one of subdivision g of this section and (iii) any increase granted on or after the effective date of this paragraph pursuant to subparagraph (l) of paragraph one of subdivision g of this section shall not exceed fifteen per centum of the “1970 base rent”. For purposes of this subparagraph, the “1970 base rent” is the maximum rent on July thirty-first, nineteen hundred seventy minus the amount of any increase granted between December thirty-first, nineteen hundred sixty-nine and July thirty-first, nineteen hundred seventy pursuant to subparagraph (a), (b), or (c) of paragraph one of subdivision g of this section. This subparagraph shall not operate to decrease any maximum rent existing on its effective date.

      (e) The rent increases provided for in this paragraph two shall be collectible upon the landlord’s filing a report with the city rent agency on forms to be prescribed by such agency, including simplified forms for landlords of buildings with twelve or fewer housing accommodations, and giving such notice to the tenant as such agency may prescribe, subject to adjustment upon order of the city rent agency. The report shall contain a certified statement by the landlord that there is no legally habitable rent controlled housing accommodation in the building which has not been rented for a period of six months or more on the date of the filing of such report, or that if there is such a housing accommodation, the reasons it has not been rented is that it is being altered pursuant to a permit issued by the department of buildings no later than three months after the vacancy commenced and that the alteration is of such a nature that the accommodation must be kept vacant while it is being made or for such other cause found by the city rent agency not to be inconsistent with the purpose of this chapter, provided further that in the case of an alteration it is commenced within sixty days from the issuance of said permit. A copy of the permit and the application therefor shall accompany the report. No report shall be accepted for filing and no rent increase provided for in this paragraph two shall be collected in the absence of any such certified statement by the landlord. Any excess shall be credited to the tenants in full commencing with the rental payment following the receipt by the landlord of such order of adjustment. If such report is filed on or before October thirty-first, nineteen hundred seventy, the increase shall take effect August first, nineteen hundred seventy. If the report is filed thereafter, such increase shall take effect with the first rental payment following filing.

      (f) The rent increases provided for in this paragraph two shall not be collected for the period between March thirty-first, nineteen hundred and seventy-one and December thirty-first, nineteen hundred seventy-one until the landlord shall have filed with the city rent agency a certified statement attesting that for every month for which he or she has received a rent increase pursuant to subparagraphs (a) and (b) of this paragraph two, he or she has expended or incurred in the operation, maintenance and improvements of the housing accommodations from which increases were collected an amount which equals the amount expended per month for such purpose averaged over the preceding five years, or such lesser period that he or she has been landlord of such properties, plus ninety per centum of all increased rents so collected.

   (3) The city rent agency shall establish maximum rents to be effective January first, nineteen hundred seventy-two by dividing the maximum gross building rental from all housing accommodations in the property whether or not subject to or exempt from control under this chapter by the number of such accommodations, after giving consideration to such factors as may be prescribed by formula, such as size and location of housing accommodations and number of rooms. Such maximum gross building rental shall be computed on the basis of real estate taxes, water rates and sewer charges and an operation and maintenance expense allowance, a vacancy allowance not in excess of two per cent, and a collection loss allowance, both as prescribed by such agency, and an eight and one-half per centum return on capital value. The operating and maintenance expense allowance shall include provision for the cost of fuel, utilities, payroll, maintenance repairs, replacement reserves and miscellaneous charges attributed to the property, excluding mortgage interest and amortization, and may be varied by the agency for different types of properties depending upon such factors as the year of construction, elevator or non-elevator buildings, and the average number of rooms per individual housing accommodations in the building. Capital value shall be equalized assessed valuation based upon the appropriate tax class ratio which is established pursuant to article twelve of the real property tax law. Where the property receives income from sources other than such housing accommodations, the taxes, water and sewer charges and the capital value attributed to the portion consisting of housing accommodations shall be in the same ratio of the total taxes, water and sewer charges (where not computed separately) and the total capital value as the gross income from such portion consisting of housing accommodations bears to the total gross income from the property, as prescribed by the agency. The agency shall report to the council on or before October fifteenth, nineteen hundred seventy-one as to the status of preparation of the formulas necessary to implement the rent adjustments to be effective January first, nineteen hundred seventy-two.

   (4) The city rent agency shall establish maximum rents effective January first, nineteen hundred seventy-four and biennially thereafter by adjusting the existing maximum rent to reflect changes, if any, in the factors which determine maximum gross building rental under paragraph three of this subdivision except that commencing January first, nineteen hundred eighty-two, said maximum rent shall no longer recognize or reflect the adjustment allocable to changes in heating costs after April ninth, nineteen hundred seventy-nine. Notwithstanding any other provisions in this paragraph to the contrary, commencing January first, nineteen hundred seventy-four, the city rent agency shall require each owner to make available for examination his or her books and all other financial records relating to the operation of each building under his or her ownership containing accommodations subject to this chapter at least once every three years for the purpose of determining whether the maximum formula rent is appropriate for each building in light of actual expenditures therefor and shall also alter such formula rent to take into account significant variations between the formula and actual cost experience. The agency shall also establish maximum costs for the factors under paragraph three of this subdivision which determine maximum gross building rental to preclude increases which would otherwise results from excessive expenditures in the operation and maintenance of the building. The return allowed on capital may be revised from time to time by local law.

   (5) Where a maximum rent established pursuant to this chapter on or after January first, nineteen hundred seventy-two, is higher than the previously existing maximum rent, the landlord may not collect an increase from a tenant in occupancy in any one year period of more than the lesser of either seven and one-half percentum or an average of the previous five years of one-year rent adjustments on rent stabilized apartments as established by the rent guidelines board, pursuant to subdivision b of section 26-510 of this title. If the period for which the rent is established exceeds one year, regardless of how the collection thereof is averaged over such period, the rent the landlord shall be entitled to receive during the first twelve months shall not be increased by more than the lesser of either seven and one-half percentum or an average of the previous five years of one-year rent adjustments on rent stabilized apartments as established by the rent guidelines board, pursuant to subdivision b of section 26-510 of this title, over the previous rent. Any additional annual rents shall not exceed the lesser of either seven and one-half percentum or an average of the previous five years of one-year rent adjustments on rent stabilized apartments as established by the rent guidelines board, pursuant to subdivision b of section 26-510 of this title, of the rent paid during the previous year. Notwithstanding any of the foregoing limitations in this paragraph five, maximum rent shall be increased if ordered by the agency pursuant to subparagraphs (d), (e), (f), (g), (h), (i), (k), or (m) of paragraph one of subdivision g of this section. Where a housing accommodation is vacant on January first, nineteen hundred seventy-two, or becomes vacant thereafter by voluntary surrender of possession by the tenants, the maximum rent established for such accommodations may be collected.

   (6) Where a new maximum rent has been established pursuant to former subdivision m of this section or, following the repeal of such subdivision, pursuant to subparagraph (m) of paragraph one of subdivision g of this section, a new maximum rent shall not be established pursuant to paragraph three of this subdivision. Except with respect to a housing accommodation to which the preceding sentence applies, where the maximum rent on December thirty-first, nineteen hundred seventy-one is higher than the maximum rent established pursuant to paragraph three of this subdivision, such prior maximum rent shall continue in effect until the maximum rent under paragraph three, as adjusted from time to time pursuant to the provisions of this chapter, shall equal or exceed such prior maximum rent, at which time the maximum rent for such housing accommodations shall be as prescribed in this chapter.

   (7) Section eight housing assistance.

      (a) Notwithstanding any provision of this chapter, if during a rental period in which the landlord is eligible for an adjustment or establishment of rents pursuant to paragraph three or four of this subdivision, housing assistance payments are being made pursuant to section eight of the United States housing act of nineteen hundred thirty-seven, as amended, with respect to any housing accommodation covered by this chapter, the maximum rent collectible from the tenant in occupancy shall be the lesser of:

         (1) the maximum rent established pursuant to paragraph three of this subdivision as adjusted pursuant to this chapter, computed without regard to the limitations of paragraph five of this subdivision (provided that in any case the rent paid by the tenant pursuant to this chapter without regard to this paragraph is higher than such rent, the rent paid shall be substituted for such rent), or

         (2) the contract or fair market rent approved for the housing accommodation pursuant to federal law or regulation.

      (b) Prior to the collection of any increase in maximum rent pursuant to this paragraph, the landlord shall advise the city rent agency of his or her intent to compute the maximum rent pursuant to this paragraph.

      (c) If a housing accommodation to which this subdivision applies ceases for any reason to be governed by this paragraph, the maximum rent collectible from the tenant shall be computed as if this paragraph had not applied and any adjustments thereto which would have been permitted pursuant to this chapter during the period such rent was set by this paragraph shall be proper rental adjustments.

   (8) Notwithstanding the provisions of this chapter, upon the sale in any manner authorized by law of a multiple dwelling which was previously subject to the provisions of such chapter and which was acquired by the city in a tax foreclosure proceeding or pursuant to article nineteen-A of the real property actions and proceedings law, for a dwelling unit which was subject to this chapter pursuant to the local emergency housing rent control act at the time the city so acquired title, is occupied by a tenant who was in occupancy at the time of acquisition and remains in occupancy at the time of sale, the maximum rent shall be the last rent charged by the city, or on behalf of the city, for such dwelling unit, which rent shall not exceed the rent computed pursuant to paragraph three of this subdivision, computed as of the time of such sale. This paragraph shall not apply to redemptions from city ownership pursuant to chapter four of title eleven of the code.

   (9) The city rent agency, prior to establishing biennially maximum base rents pursuant to this chapter and before establishing a maximum base rent which is different from the previously existing maximum base rent for dwellings covered by this law, shall hold a public hearing or hearings for the purpose of collecting information the city rent agency may consider in establishing maximum base rents. Notice of the date, time, location and summary of subject matter for the public hearing or hearings shall be published in the City Record for a period of not less than fourteen days, and at least once in one or more newspapers of general circulation at least fourteen days immediately preceding each hearing date, at the expense of the city of New York, and the hearing shall be open for testimony from any individual, group, association or representative thereof who wants to testify.

  1. Such agency, to effectuate the purposes of this chapter, and in accordance with the standards set forth in paragraph two of subdivision c of this section, may set aside and correct any maximum rent resulting from illegality, irregularity in vital matters or fraud, occurring prior to or after May first, nineteen hundred sixty-two.
    1.    Whenever such agency determines that such action is necessary to effectuate the purposes of this chapter, it may also establish maximum rents for housing accommodations to which this chapter applies, where no maximum rent with respect thereto was in effect on April thirtieth, nineteen hundred sixty-two, or where no registration statement had been filed with respect thereto as required by the state rent act, or where for any other reason the provisions of subdivision a of this section are not susceptible to application to any such housing accommo- dations.

   (2) Such rents shall be established, having regard for the maximum rents for comparable housing accommodations or any other factors bearing on the equities involved, consistent with the purposes of this chapter.

  1. Where any housing accommodations, which are decontrolled (including those decontrolled by order) or exempted from control pursuant to the provisions of subparagraph (i) of paragraph two of subdivision e of section 26-403 of this chapter, are certified by any city agency having jurisdiction to be a fire hazard or in a continued dangerous condition or detrimental to life or health, the city rent agency shall establish maximum rents for such housing accommodations, having regard for the maximum rents for comparable housing accommodations or any other factors bearing on the equities involved, consistent with the purposes of this chapter.
  2. Notwithstanding any other provision of this chapter, and subject to the provisions of subdivision f of this section, provision shall be made pursuant to regulations prescribed by the city rent agency for the establishment, adjustment and modification of maximum rents with respect to rooming house and single room occupancy accommodations, which shall include those housing accommodations subject to control pursuant to the provisions of subparagraph (c) of paragraph two of subdivision e of section 26-403 of this chapter (other than those accommodations subject to control under the last proviso of such subparagraph (c)), having regard for any factors bearing on the equities involved, consistent with the purposes of this chapter, to correct speculative, abnormal and unwarranted increases in rent.
  3. On or before June thirtieth, nineteen hundred sixty-two, the city rent agency shall undertake a survey and investigation of all factors affecting rents, rental conditions and rental practices with respect to rooming houses and single room occupancy accommodations within the city for the purpose of determining whether the provisions of this chapter and the regulations thereunder relating to the establishment and adjustment of maximum rents for rooming house and single room occupancy accommodations are reasonably designed to prevent exaction of unreasonable and oppressive rents. Not later than January fifteenth, nineteen hundred sixty-three, such agency shall submit to the council a report setting forth the results of such survey and investigation, together with the findings and recommendations of such agency and any amendments to this chapter and the regulations thereunder which such agency may deem necessary or desirable for the accomplishment of the purposes of this chapter in relation to such accommodations. During the period between May first, nineteen hundred sixty-two and the thirtieth day next succeeding the date of the submission of such report to the council (1) no application for an increase in any maximum rent for any rooming house or single room occupancy accommodations may be filed on any ground other than those specified in subparagraphs (f) and (g) of paragraph one of subdivision g of this section, and (2) no maximum rents for any rooming house or single room occupancy accommodations shall be increased on any grounds other than those specified in such subparagraphs (f) and (g); provided that where the maximum rents for any such accommodations were or are decreased prior to or during such period because of the landlord’s reduction of living space, essential services, furniture, furnishings or equipment, and such reduction has been corrected, an application for restoration of the rent decrease may be filed and such rents may be adjusted so as to fix maximum rents which the city rent agency may determine to be proper, pursuant to the provisions of subdivision e of this section, but which shall not in any event exceed the maximum rents for such accommodations in effect immediately prior to such rent decrease.
    1.    The city rent agency may from time to time adopt, promulgate, amend or rescind such rules, regulations and orders as it may deem necessary or proper to effectuate the purposes of this chapter, including practices relating to recovery of possession; provided that such regulations can be put into effect without general uncertainty, dislocation and hardship inconsistent with the purposes of this chapter; and provided further that such regulations shall be designed to maintain a system of rent controls at levels which, in the judgment of such agency, are generally fair and equitable and which will provide for an orderly transition from and termination of emergency controls without undue dislocations, inflationary price rises or disruption. Provision shall be made, pursuant to regulations prescribed by such agency, for individual adjustment of maximum rents where:

      (a) The rental income from a property yields a net annual return of less than six per centum of the valuation of the property.

         (1) Such valuation shall be the current assessed valuation established by the city, which is in effect at the time of the filing of the application for an adjustment under this subparagraph (a); provided that:

            (i) The city rent agency may make a determination that the valuation of the property is an amount different from such assessed valuation where there has been a reduction in the assessed valuation for the year next preceding the effective date of the current assessed valuation in effect at the time of the filing of the application; and

            (ii) Such agency may make a determination that the value of the property is an amount different from the assessed valuation where there has been a bona fide sale of the property within the period February first, nineteen hundred sixty-one, and the time of filing of the application, as the result of a transaction at arm’s length, on normal financing terms, at a readily ascertainable price, and unaffected by special circumstances such as but not limited to a forced sale, exchange of property, package deal, wash sale or sale to a cooperative; provided, however, that where an application was filed under this subparagraph (a) on or before the effective date of this sub-item (ii), the city rent agency may determine the value of the property on the basis that there has been a bona fide sale of the property within the period between March fifteenth, nineteen hundred fifty-eight, and the time of the filing of the application. In determining whether a sale was on normal financing terms, such agency shall give due consideration to the following factors:

               (a) the ratio of the cash payment received by the seller to (1) the sales price of the property and (2) the annual gross income from the property;

               (b) the total amount of the outstanding mortgages which are liens against the property (including purchase money mortgages) as compared with the assessed valuation of the property;

               (c) the ratio of the sales price to the annual gross income of the property, with consideration given to the total amount of rent adjustments previously granted, exclusive of rent adjustments because of changes in dwelling space, services, furniture, furnishings or equipment, major capital improvements, or substantial rehabilitation;

               (d) the presence of deferred amortization in purchase money mortgages, or the assignment of such mortgage at a discount;

               (e) Any other facts and circumstances surrounding such sale which, in the judgment of such agency, may have a bearing upon the question of financing; and

            (iii) Where the assessed valuation of the land exceeds four times the assessed valuation of the buildings thereon, the city rent agency may determine a valuation of the property equal to five times the assessed valuation of the buildings, for the purposes of this subparagraph (a).

         (2) An application for an increase in any maximum rent under this subparagraph (a) of this paragraph one may not be filed with respect to any property if, on the date when the application is sought to be filed:

            (i) Less than two years have elapsed since the date of the filing of the last prior application for an increase under this subparagraph (a) of this paragraph one with respect to such property, which application resulted in the granting of an increase; or

            (ii) Less than two years have elapsed since the last sale of the property, and the application is based upon a sale price in excess of the assessed valuation. This subitem shall not apply, however, where less than two years have elapsed since the last sale of the property and the application is based upon a sale within such two-year period at a price in excess of the assessed valuation, if such price is less than the price in the last sale which meets the criteria heretofore specified in this subparagraph (a) occurring prior to two years before the application is sought to be filed and since February first, nineteen hundred sixty-one.

         (3) No increase in maximum rents shall be granted under this subparagraph (a) by the city rent agency while there is pending without final disposition any judicial proceeding to correct the final determination of the tax commission with respect to the assessed valuation of such property, (a) for the city fiscal year in which the landlord filed the application for such increase or (b) for the city fiscal year immediately preceding the filing of the application for such increase.

         (4) For the purposes of this subparagraph (a):

            (i) Net annual return shall be the amount by which the earned income exceeds the operating expenses of the property, excluding mortgage interest and amortization, and excluding allowances for obsolescence and reserves, but including an allowance for depreciation of two per centum of the value of the buildings exclusive of the land, or the amount shown for depreciation of the buildings in the latest required federal income tax return, whichever is lower; provided, however, that no allowance for depreciation of the buildings shall be included where the buildings have been fully depreciated for federal income tax purposes or on the books of the owner; and

            (ii) Test year shall be the most recent full calendar year or the landlord’s most recent fiscal year or any twelve consecutive months ending not more than ninety days prior to the filing of the application for an increase;

      (b) Where a building contains no more than nineteen rental units and the landlord has not been fully compensated by increases in rental income sufficient to offset unavoidable increases in property taxes, fuel, utilities, insurance and repairs and maintenance, excluding mortgage interest and amortization, and excluding allowance for depreciation, obsolescence and reserves, which have occurred since the federal date determining the maximum rent; or

      (c) The landlord operates a hotel or rooming house or owns a cooperative apartment and has not been fully compensated by increases in rental income from the controlled housing accommodations sufficient to offset such unavoidable increases in property taxes and other costs as are allocable to such controlled housing accommodations, including costs of operation of such hotel or rooming house, but excluding mortgage interest and amortization, and excluding allowances for depreciation, obsolescence and reserves, which have occurred since the federal date determining the maximum rent or the date the landlord commenced the operation of the property, whichever is later; or

      (d) The landlord and tenant in occupancy voluntarily enter into a valid written lease in good faith with respect to any housing accommodation, which lease provides for an increase in the maximum rent on the basis of specified increased services, furniture, furnishings, or equipment, provided the city rent agency determines that the specified increased services, furniture, furnishings or equipment have a market value commensurate with the increased rent, the increase maximum rent is not in excess of fifteen per centum and the lease is for a term of not less than two years, provided further that a report of lease is filed as prescribed by regulations issued by the city rent agency or has been otherwise accepted by such agency, and provided further, that where the entire structure, or any lesser portion thereof was vacated by order of a city department having jurisdiction, on or after November twenty-second, nineteen hundred sixty-three and any tenants therein were relocated by the department of relocation, or such structure was boarded up by the department of real estate, such lease increases in subsequently executed leases shall not become effective for any housing accommodations in the structure until such departments have been reimbursed for expenses necessarily incurred in connection with the foregoing; provided further, however, that the landlord may obtain such lease increases without making such reimbursement where the vacating was caused by fire or accident not resulting from any unlawful act or omission on the part of the landlord; or

      (e) The landlord and tenant by mutual voluntary written agreement demonstrating informed consent agree to a substantial increase or decrease in dwelling space or a change in furniture, furnishings or equipment provided in the housing accommodations. An adjustment under this subparagraph shall be equal to one-one hundred sixty-eighth, in the case of a building with thirty-five or fewer housing accommodations or one-one hundred eightieth in the case of a building with more than thirty-five housing accommodations where such temporary adjustment takes effect on or after the effective date of the chapter of the laws of two thousand nineteen that amended this subparagraph, of the total actual cost incurred by the landlord in providing such reasonable and verifiable modification or increase in dwelling space, furniture, furnishings, or equipment, including the cost of installation but excluding finance charges and any costs that exceed reasonable costs established by rules and regulations promulgated by the division of housing and community renewal. Such rules and regulations shall include: (i) requirements for work to be done by licensed contractors and prohibit common ownership between the landlord and the contractor or vendor; and (ii) a requirement that the owner resolve within the dwelling space all outstanding hazardous or immediately hazardous violations of the Uniform Fire Prevention and Building Code (Uniform Code), New York City Fire Code, or New York City Building and Housing Maintenance Codes, if applicable. Provided further that an owner who is entitled to a rent increase pursuant to this subparagraph shall not be entitled to a further rent increase based upon the installation of similar equipment, or new furniture or furnishings within the useful life of such new equipment, or new furniture or furnishings. Provided further that the recoverable costs incurred by the landlord, pursuant to this subparagraph shall be limited to an aggregate cost of fifteen thousand dollars that may be expended on no more than three separate individual apartment improvements in a fifteen year period beginning with the first individual apartment improvement on or after June fourteenth, two thousand nineteen. Provided further that increases to the legal regulated rent pursuant to this subparagraph shall be removed from the legal regulated rent thirty years from the date the increase became effective inclusive of any increases granted by the applicable rent guidelines board. The owner shall give written notice to the city rent agency of any such temporary adjustment pursuant to this subparagraph; or

      (f) There has been since March first, nineteen hundred fifty-nine, an increase in the rental value of the housing accommodations as a result of a substantial rehabilitation of the building or housing accommodation therein which materially adds to the value of the property or appreciably prolongs its life, excluding ordinary repairs, maintenance and replacements; or

      (g) There has been since July first, nineteen hundred seventy, a major capital improvement essential for the preservation energy efficiency, functionality, or infrastructure of the entire building, improvement of the structure including heating, windows, plumbing and roofing but shall not be for operational costs or unnecessary cosmetic improvements. The temporary increase based upon a major capital improvement under this subparagraph for any order of the commissioner issued after the effective date of the chapter of the laws of two thousand nineteen that amended this subparagraph shall be in an amount sufficient to amortize the cost of the improvements pursuant to this subparagraph (g) over a twelve-year period for buildings with thirty-five or fewer units or a twelve and one-half year period for buildings with more than thirty-five units, and shall be removed from the legal regulated rent thirty years from the date the increase became effective inclusive of any increases granted by the applicable rent guidelines board. Temporary major capital improvement increases shall be collectible prospectively on the first day of the first month beginning sixty days from the date of mailing notice of approval to the tenant. Such notice shall disclose the total monthly increase in rent and the first month in which the tenant would be required to pay the temporary increase. An approval for a temporary major capital improvement increase shall not include retroactive payments. The collection of any increase shall not exceed two percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the rent as established or set in future years. Upon vacancy, the landlord may add any remaining balance of the temporary major capital improvement increase to the legal regulated rent. Notwithstanding any other provision of the law, for any renewal lease commencing on or after June 14, 2019, the collection of any rent increases due to any major capital improvements approved on or after June 16, 2012 and before June 16, 2019 shall not exceed two percent in any year for any tenant in occupancy on the date the major capital improvement was approved, or

      (h) There have been since March first, nineteen hundred fifty-nine, in structures containing more than four housing accommodations, other improvements made with the express consent of the tenants in occupancy of at least seventy-five per centum of the housing accommodations; provided, however, that whenever the city rent agency has determined that the improvements proposed were part of a plan designed for overall improvement of the structure or increases in services, it may authorize increases in maximum rents for all housing accommodations affected upon the express consent of the tenants in occupancy of at least fifty-one per centum of the housing accommodations, and provided further that no adjustment granted hereunder shall exceed fifteen per centum unless the tenants have agreed to a higher percentage of increase, as herein provided; or

      (i) There has been, since March first, nineteen hundred fifty-nine, a subletting without written consent from the landlord or an increase in the number of adult occupants who are not members of the immediate family of the tenant, and the landlord has not been compensated therefor by adjustment of the maximum rent by lease or order of the city rent agency or pursuant to the state rent act or the federal act; or

      (j) The presence of unique or peculiar circumstances materially affecting the maximum rent has resulted in a maximum rent which is substantially lower than the rents generally prevailing in the same area for substantially similar housing accommodations.

      (k) The landlord has incurred, since January first, nineteen hundred seventy, in connection with and in addition to a concurrent major capital improvement pursuant to subparagraph (g) of this paragraph, other expenditures to improve, restore or preserve the quality of the structure. An adjustment under this subparagraph shall be granted only if such improvements represent an expenditure equal to at least ten per centum of the total operating and maintenance expenses for the preceding year. An adjustment under this subparagraph shall be in addition to any adjustment granted for the concurrent major capital improvement and shall be in an amount sufficient to amortize the cost of the improvements pursuant to this subparagraph over a seven-year period.

      (l) [Repealed.]

      (m) Where the rehabilitation or improvement of sub-standard or deteriorated housing accommodations has been financed under a governmental program providing assistance through loans, loan insurance or tax abatement or has been undertaken under another rehabilitation program not so financed but approved by the commissioner.

      (n) [Repealed.]

      (o) (1) There has been an increase in heating and heating fuel expenditures in a property resulting from a city-wide rise in heating fuel costs such that the verifiable expenditures for heating or heating fuel in a property for nineteen hundred seventy-four exceeds the verifiable expenditures for such heating or heating fuel during nineteen hundred seventy-three.

         (2) To obtain a rental adjustment pursuant to this subparagraph (o), the landlord must certify that he or she is presently maintaining all essential services required to be furnished with respect to the housing accommodations covered by such certification, and that he or she will continue to so maintain such essential services for the period of any such adjustment.

         (3) To obtain a rental adjustment pursuant to this subparagraph (o), the landlord must certify on information and belief that he or she will not be earning an amount in excess of the statutory return specified in subparagraph (a) of paragraph one of subdivision g of this section after collection of such rental adjustment, with respect to the building or buildings serviced by a single heating plant; and where the building, or buildings serviced by a single heating plant, contains forty-nine or fewer housing accommodations, the landlord must certify that the amount expended directly for heating or heating fuel in nineteen hundred seventy-four equalled or exceeded ten per cent of the total rental income which was derived from the property during nineteen hundred seventy-four; and, where the building, or buildings serviced by a single heating plant, contains fifty or more housing accommodations the landlord must certify that the amount expended directly for heating or heating fuel in nineteen hundred seventy-four equalled or exceeded seven and one-half percentum of the total rental income which was derived from the property during nineteen hundred seventy-four.

         (4) The total rental adjustments for a property to be allocated or deemed allocated pursuant to this subparagraph (o) shall not exceed onehalf of the gross amount by which the total verifiable expenditures for heating or heating fuel for nineteen hundred seventy-four exceeds the total verifiable expenditures for such heating or heating fuel for nineteen hundred seventy-three.

         (5) Such total rental adjustments shall be allocated or deemed allocated pursuant to this subparagraph (o) to all housing accommodations subject to this chapter, to all other housing accommodations, and to all commercial, professional and similar facilities in or associated with the property in a manner to be determined by the agency. In no event shall any adjustment in maximum rent pursuant to this subparagraph (o) for any housing accommodations subject to this chapter exceed a monthly increase of two dollars per room, as defined by item eight below. In any apartment containing five or more rooms, any increase shall not exceed the total of nine dollars.

         (6) Any adjustment pursuant to this subparagraph (o) shall be effective for all or part of the period July first, nineteen hundred seventy-five through June thirtieth, nineteen hundred seventy-six. Any adjustment pursuant to this subparagraph shall automatically expire no later than June thirtieth, nineteen hundred seventy-six.

         (7) The rental increases provided for herein shall be effective and collectible upon the landlord’s filing a report with the agency on forms prescribed by the agency and upon giving such notice to the tenants as the agency shall prescribe, subject to adjustments upon order of the agency.

         (8) In determining the amount of an adjustment allocation of an adjustment pursuant to this subparagraph (o), only living rooms, kitchens over fifty-nine square feet in area, dining rooms and bedrooms shall be considered rooms; bathrooms, foyers, and kitchenettes shall not be considered rooms.

   (2) In any case where any housing accommodation was vacated on or after the effective date of this paragraph two, other than by voluntary surrender of possession or in the manner provided in this chapter, the city rent agency may, by regulations having due regard for the equities involved, bar adjustments pursuant to subparagraphs (f) and (g) of paragraph one of this subdivision g, except for work which:

      (a) is necessary in order to remove violations against the property;

      (b) is necessary to obtain a certificate of occupancy if such certificate is required by law; or

      (c) could have been performed with a tenant in physical possession of the housing accommodation.

   (3) Any adjustment pursuant to subparagraph (a), (b), or (c) of paragraph one of this subdivision shall be subject to the limitation set forth in paragraph five of subdivision a of this section; provided:

      (a) that in ordering an adjustment pursuant to such subparagraph (a), the city rent agency may waive such limitation where a greater increase is necessary to make the earned income of the property equal to its operating expenses; and

      (b) that where due to such limitation the landlord will not receive the full amount of the rent increase to which he or she would otherwise be entitled, the order of the city rent agency shall increase the maximum rent by a further additional amount during each succeeding twelvemonth period, not to exceed seven and a half percentum of the maximum rent in effect on the date of the filing of the application for an adjustment, under the maximum rent shall reflect the full increase to which the landlord is entitled.

   (4) Any increase in maximum rent shall be apportioned equitably among all the controlled housing accommodations in the property. In making such apportionment and in fixing the increases in maximum rents, the city rent agency shall give due consideration (a) to all previous adjustments or increases in maximum rents by lease or otherwise; and (b) to all other income derived from the property, including income from space and accommodations not controlled, or the rental value thereof if vacant or occupied rent-free, so there is allocated to the controlled housing accommodations therein only that portion of the amount of increases necessary pursuant to subparagraph (a), (b), (c) or (k) of paragraph one of this subdivision g, as is properly attributable to such controlled accommo- dations.

   (5) The city rent agency shall compile and make available for public inspection at reasonable hours at its principal office and at each appropriate local office, the manual of accounting procedures and advisory bulletins applicable to applications under subparagraphs (a), (b) and (c) of paragraph one of this subdivision g, and all amendments to such manual and bulletins.

   (6) (a)    No application for an increase in any maximum rent may be filed under subparagraph (a), (b) or (c) of paragraph one of this subdivision g with respect to any property unless there is annexed to such application:

         (1) A report of search issued by the agency of the city having jurisdiction stating either that no violations against such property are recorded or a receipt (or photocopy thereof) issued by that agency attesting to the payment of the fee for the report of search or that all violations recorded against such property have been cleared, corrected or abated; and

         (2) A certification by the landlord of such property that he or she is maintaining all essential services required to be furnished and that he or she will continue to maintain such services so long as any such increase in the maximum rent continues in effect.

      (b) Except as provided in subparagraph (c) of this paragraph six and paragraph four of subdivision h of this section, no landlord shall be entitled to an increase in the maximum rent on any ground unless he or she certifies that he or she is maintaining all essential services furnished or required to be furnished as of the date of the issuance of the order adjusting the maximum rent and that he or she will continue to maintain such services so long as the increase in such maximum rent continues in effect; nor shall any landlord be entitled to any increase in the maximum rent on any ground where an agency of the city having jurisdiction certifies that the housing accommodation is a fire hazard or is a continued dangerous condition or detrimental to life or health or is occupied in violation of law; nor shall any landlord be entitled to any increase where the landlord has not removed the violations recorded against such property as shown in the report of search required under subparagraph (a) of this paragraph six.

      (c) Where an application for an increase in any maximum rent is filed under subparagraph (f) and/or (g) of paragraph one of this subdivision g, and the landlord is not entitled to any increase by reason of the provisions of subparagraph (b) of this paragraph six, the city rent agency may waive such provisions and issue orders increasing the maximum rent effective as of the date of the issuance of the orders provided, however, that the landlord agrees in writing to deposit the entire amount of such increase in maximum rent into an escrow account administered by the city rent agency in accordance with rules and regulations to be promulgated by such agency for the purpose of obtaining compliance with such provisions and further agrees to obtain and submit to the city rent agency within one year from the date of issuance of such orders; a report of search issued by the agency of the city having jurisdiction stating that the violations shown in the report of search required under subparagraph (a) of this paragraph six have been removed, cleared, corrected or abated, and his or her own certification that he or she is and will continue to maintain all essential services in accordance with the provisions of subparagraph (b) of this paragraph six. In the event the landlord fails to fully comply with such provisions within one year from the date of the issuance of the order increasing the maximum rent, the city agency may, having due regard for the equities involved, revoke such orders and direct full refund to the tenants of the entire increase paid by the tenants as a result of such orders. Any person serving as escrow agent shall not be liable except for fraud or misfeasance.

      (d) No new maximum rent shall be established pursuant to paragraph three or four of subdivision a of this section unless not more than one hundred fifty days nor less than ninety days prior to the effective date thereof, the landlord has certified that he or she is maintaining all essential services required to be furnished with respect to the housing accommodations covered by such certification, and that he or she will continue to maintain such services so long as such new maximum rent is in effect. Each such certification filed to obtain a new maximum rent pursuant to paragraph four of subdivision a of this section shall be accompanied by a certification by the landlord that he or she has actually expended or incurred ninety per centum of the total amount of the cost index for operation and maintenance established for his or her type of building.

      (e) The city rent agency shall establish a counseling service to provide assistance to tenants and to landlords of buildings containing nineteen or fewer housing accommodations, by way of instruction in the management, maintenance and upkeep of housing accommodations, their respective responsibilities thereto, the programs and enforcement remedies available in the agency and from other city agencies, and assistance in the preparation of applications and other forms.

   (7) Before ordering any adjustment in maximum rents, the city rent agency shall accord a reasonable opportunity to be heard thereon to the tenant and the landlord.

    1. Whenever in the judgment of the city rent agency such action is necessary or proper in order to effectuate the purposes of this chapter, such agency may, by regulation or order, regulate or prohibit speculative or manipulative practices or renting or leasing practices, including practices relating to recovery of possession, which in the judgment of such agency are equivalent to or are likely to result in rent increases inconsistent with the purposes of this chapter.

   (2) Whenever in the judgment of such agency such action is necessary or proper in order to effectuate the purposes of this chapter, such agency may provide regulations to assure the maintenance of the same living space, essential services, furniture, furnishings and equipment as were provided on the date determining the maximum rent, and such agency shall have power by regulation or order to decrease the maximum rent or take action as provided in paragraph four of this subdivision h for any housing accommodation with respect to which a maximum rent is in effect, pursuant to this chapter, if it shall find that the living space, essential services, furniture, furnishings or equipment to which the tenant was entitled on such date have been decreased. The amount of the reduction in maximum rent ordered by such agency under this paragraph shall be reduced by any credit, abatement or offset in rent which the tenant has received pursuant to section two hundred thirty-five-b of the real property law that relates to one or more conditions covered by such order.

   (3) Whenever any agency of the city having jurisdiction certifies that any housing accommodation is a fire hazard or is in a continued dangerous condition or detrimental to life or health, or is occupied in violation of law, the city rent agency may issue an order decreasing the maximum rent or take action as provided in paragraph four of this subdivision h for such housing accommodation in such amount as it deems necessary or proper, until the agency issuing such certification has certified that such housing accommodation is no longer a fire or other hazard and is not in a condition detrimental to life and health and is not occupied in violation of law.

   (4) (a) Whenever in the judgment of the city rent agency such action is necessary or proper in order to effectuate the purposes of this chapter, such agency may, in lieu of decreasing the maximum rents as provided in paragraphs two and three of this subdivision h, enter into a contract wherein the landlord agrees in writing to deposit all income derived from the property, including income from spaces and accommodations not controlled, into an escrow or trust account for use in maintaining or restoring essential services and equipment, for removing violations against the property or housing accommodations therein, making such repairs as are necessary to remove a certification from any city agency having jurisdiction thereof that the housing accommodation is a fire hazard or is in a continued dangerous condition or detrimental to life or health, or is occupied in violation of law, and/or for such other uses as the city rent agency deems necessary or proper for the preservation, repair or maintenance of the property. The city rent agency may adopt such rules and regulations and orders as it may deem necessary or proper to effectuate the purposes of this paragraph, including but not limited to the issuance of orders adjusting all controlled rents to the appropriate maximum rent effective as of the first day of the month following the execution of the contract provided, however, that in the event the city rent agency shall determine that the landlord has breached such contract, such agency may issue orders (1) decreasing the maximum rents pursuant to such contract; (2) containing a directive that rent collected by the landlord in excess of the rent thus decreased be refunded to the tenants; and (3) containing such other determinations and directives as are necessary in order to effectuate the purposes of this paragraph four.

      (b) Notwithstanding any provision of this chapter to the contrary, whenever in the judgment of the city rent agency action as provided in paragraph two or three of this subdivision h is necessary or proper in order to effectuate the purposes of this chapter, such agency may in lieu of decreasing the maximum rents thereof issue orders adjusting all controlled rents and directing that rents be paid into an escrow account for the uses stated in subparagraph (a) of this paragraph four where:

         (1) The landlord fails to take corrective action after notice by the city rent agency of proposed action to decrease the maximum rents pursuant to paragraph two or three of this subdivision h, and,

         (2) The city rent agency has notified all mortgagees who have filed with the city rent agency a declaration of interest in such property and in such proposed action, and,

         (3) The landlord has failed for three consecutive months to collect any controlled rents or to commence court proceedings for their collection or if such proceedings have been commenced, the landlord has not diligently prosecuted them or such proceedings have not resulted in judgment in favor of such landlord.

      (c) The city rent agency shall promulgate rules and regulations for the administration of escrow and trust accounts set forth in this paragraph four. Any person serving as escrow agent or trustee shall not be liable except for fraud, breach of fiduciary duties or misfeasance.

   (5) Whenever the essential services, furnishings, furniture or equipment of any individual housing accommodation are reduced, impaired, mutilated, or made unworkable as the result of the neglect, failure to exercise due care, or failure of the tenant to take practicable precautions to prevent such condition, the landlord shall restore such services, furniture, furnishings or equipment and pursuant to regulations to be prescribed by the city rent agency may make application for a temporary increase in the maximum rent based upon the cost of such restoration. In the event of the failure of the tenant to make restitution within a reasonable time, as determined by the city rent agency an order shall be issued adjusting the maximum rent for such tenant in an amount sufficient to recover the cost over twelve monthly installments, or until the tenant surrenders possession, whichever is sooner. The provisions of this paragraph shall be in addition to all other rights and remedies of the landlord.

   (6) If at least six months before the effective date of any adjustment or establishment of rents pursuant to paragraph three or four of subdivision a of this section, the landlord has not certified to the agency having jurisdiction that (a) all rent impairing violations (as defined by section three hundred two-a of the multiple dwelling law), and (b) at least eighty per centum of all other violations of the housing maintenance code or other state or local laws that impose requirements on property that were recorded against the property one year prior to such effective date have been cleared, corrected, or abated, no increase pursuant to such paragraphs shall take effect until he or she shall have entered into a written agreement with the city rent agency to deposit all income derived from the property into an escrow or trust account pursuant to subparagraph (a) of paragraph four of this subdivision, in addition to the procedures set forth in this paragraph and all other applicable penalties and procedures under this chapter, such violation shall also be subject to repair or removal by the city pursuant to the provisions of article five of subchapter five of the housing maintenance code, the landlord to be liable for the cost thereof.

  1. Any regulation or order issued pursuant to this section may be established in such form and manner, may contain such classifications and differentiations, and may provide for such adjustments including the establishment of new or adjusted maximum rents in whole dollar amounts, and such reasonable exceptions as in the judgment of the city rent agency are necessary or proper in order to effectuate the purposes of this chapter.
  1. No increase or decrease in maximum rent shall be effective prior to the date on which the order therefor is issued, except as hereinafter provided. If an application for an increase pursuant to subparagraph (a) of paragraph one of subdivision g of this section submitted on or after August first, nineteen hundred seventy is accompanied by a certified statement of expenditures and no order is issued thereon within four months of the filing of an application based on assessed value or equalized assessed value, or eight months of the filing of an application based on sale price, with all required documentation the increased rent requested shall thereafter be placed in an interest bearing escrow account until a final determination is made upon such application by the city rent agency. Upon initial determination by the agency an order shall be issued providing for the payment of the increased amount, if any, due to the landlord from the date of first deposit of rent in said escrow account with interest, and the excess amount, if any, be paid the tenants entitled thereto, with an appropriate amount of interest. The city rent agency shall promulgate rules and regulations for the administration of such escrow accounts. Any person serving as escrow agent shall not be liable except for fraud or misfeasance.
  2. Regulations, orders, and requirements under this chapter may contain such provisions as the city rent agency deems necessary to prevent the circumvention or evasion thereof.
  3. The powers granted in this action shall not be used or made to operate to compel changes in established rental practices, except where such action is affirmatively found by the city rent agency to be necessary to prevent circumvention or evasion of any regulation, order, or requirement under this chapter.
  4. Findings. The council finds that there is an acute and continuing housing shortage; that this shortage has and continues to have an adverse effect on the population and especially on inhabitants of the city who are sixty-two years of age or older and of limited means, as well as persons with disabilities, who cannot pay enough rent to induce private enterprise to maintain decent housing at rents they can afford to pay; that this condition is and continues to be particularly acute in a time of rising costs such as the present; that present rising costs and the continuing increase in rents pursuant to amendments to the New York city rent and rehabilitation law may result in such persons being unable to pay their rent, thus making them subject to eviction; that such hardships fall with particular severity upon older persons in the population, as well as persons with disabilities, because of their particular inability to find alternative accommodations within their means, because of the trauma experienced by many older persons, as well as persons with disabilities, who have to relocate and because they may endanger their health by paying additional sums for shelter and thereby deprive themselves of other necessities; that hardships imposed upon such people adversely affect their health and welfare and the general welfare of the inhabitants of the city. The council is aware of the provisions set forth in chapter three hundred seventy-two and chapter one thousand twelve of the laws of nineteen hundred seventy-one. It is our considered opinion that this legislation extending the rent exemption to cover the resultant rent increases due to the maximum rents established January first, nineteen hundred seventy-two, is not more stringent or restrictive than those presently in effect. It is found and declared to be necessary for the health, welfare and safety of persons who are sixty-two years of age or older, persons with disabilities and inhabitants of the city that the city continue a system of special rent adjustments for such older persons, as well as extend such special rent adjustments to persons with disabilities as hereinafter provided.

   (1) No increase in maximum rent pursuant to paragraph two or paragraph three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one of subdivision g of this section, shall be collectible from a tenant to whom there has been issued a currently valid rent exemption order pursuant to this subdivision, except as provided in such order.

   (2) A tenant is eligible for a rent exemption order pursuant to this subdivision if:

      (i) the head of the household residing in the housing accommodation is sixty-two years of age or older or is a person with a disability, and is entitled to the possession or to the use or occupancy of a dwelling unit. To qualify as a person with a disability for the purposes of this section, an individual shall submit to such agency as the mayor shall designate proof (as specified by regulation of such agency as the mayor shall designate) showing that such individual is currently receiving social security disability insurance (SSDI) or supplemental security income (SSI) benefits under the federal social security act or disability pension or disability compensation benefits provided by the United States department of veterans affairs, or was previously eligible by virtue of receiving disability benefits under the supplemental security income program or the social security disability program and is currently receiving medical assistance benefits based on determination of disability as provided in section three hundred sixty-six of the social services law.

      (ii) the aggregate disposable income (as defined by regulation of the department of finance) of all members of the household residing in the housing accommodation whose head of household is sixty-two years of age or older does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, twenty-nine thousand dollars beginning July first, two thousand nine, and fifty thousand dollars beginning July first, two thousand fourteen, per year, after deduction of federal, state and city income and social security taxes. For purposes of this subparagraph, “aggregate disposable income” shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the date of eligibility of a head of the household receiving benefits under this subdivision whether received by the head of the household or any other member of the household.

      (iii) the aggregate disposable income (as defined by regulation of such agency as the mayor shall designate) for the current income tax year of all members of the household residing in the housing accommodation whose head of the household is a person with a disability pursuant to this section does not exceed fifty thousand dollars beginning July first, two thousand fourteen. For purposes of this subparagraph, “aggregate disposable income” shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the date of eligibility of a head of the household receiving benefits under this subdivision whether received by the head of the household or any other member of the household.

      (iv) (a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, (A) the maximum rent for the housing accommodations exceeds one-third of the aggregate disposable income, or (B) if any expected increase in the maximum rent pursuant to paragraph two, three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one of subdivision g of this section would cause such maximum rent to exceed one-third of the aggregate disposable income, or (C) if such head of household has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen regardless of whether the maximum rent or any expected increase described in this clause exceeds one-third of the aggregate disposable income; or

         (b) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodations exceeds the maximum allowance for shelter which the head of the household is entitled to receive pursuant to the social services law or if any expected increase in the maximum rent pursuant to paragraph two, three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one of subdivision g of this section would cause such maximum rent to exceed the maximum allowance for shelter which the head of the household is entitled to receive.

   (3) (a) A rent exemption order pursuant to this subdivision shall provide:

         (i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of one-third of the aggregate disposable income, or the maximum collectible rent in effect on December thirty-first of the year preceding the effective date of the order, whichever is greater; or

         (ii) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of either the maximum allowance for shelter which the head of the household is entitled to receive, or the maximum collectible rent in effect on December thirty-first of the year preceding the effective date of the order, whichever is greater; except,

         (iii) notwithstanding clause (i) of this subparagraph, in the case of an eligible head of the household who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of the amount specified in such order, except as may be adjusted by any other provision of this chapter; and except (iv) that the landlord may collect from the tenants described in clause (i) and items (ii) and (iii) of this subparagraph increases in rent pursuant to subparagraphs (d), (e), and (i) of paragraph one of subdivision g of this section.

      (b) Each such order shall expire upon termination of occupancy of the housing accommodation by the tenant to whom it is issued. The landlord shall notify the department of finance, in the case of a household whose eligibility for such order is based on the fact that the head of such household is sixty-two years of age or older, or such agency as the mayor shall designate, in the case of a household whose eligibility for such order is based on the fact that the head of such household is a person with a disability, on a form to be prescribed by such department or agency, within thirty days of each such termination of occupancy.

      (c) When a rent reduction order is issued by the city rent agency, the amount of the reduction shall be subtracted from the rent payable by the tenant specified in a currently valid rent exemption order issued pursuant to this subdivision. The landlord may not collect from the tenant a sum of rent exceeding the adjusted amount while the rent reduction order is in effect.

   (4) Any landlord who collects, or seeks to collect or enforce, rent from a tenant in violation of the terms of a rent exemption order shall, for the purposes of all remedies, sanctions and penalties provided in this chapter, be deemed to have collected or attempted to collect or enforce, a rent in excess of the legal maximum rent.

   (5) A rent exemption order shall be issued to each tenant who applies to the department of finance or such agency as the mayor shall designate (which agency may also be the department of finance) in accordance with such department’s or agency’s regulations and who is found to be eligible under this subdivision. Such order shall take effect on the first day of the first month after receipt of such application, except that where the aggregate disposable income of all members of the household residing in the housing accommodation whose head of the household is sixty-two years of age or older is greater than five thousand dollars per year but does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, twenty-nine thousand dollars beginning July first, two thousand nine, and fifty thousand dollars beginning July first, two thousand fourteen, per year pursuant to subparagraph (ii) of paragraph two of subdivision m of this section on orders issued on applications received before July first, nineteen hundred seventy-five, the effective date of such order shall be the later of (1) June thirtieth, nineteen hundred seventy-four or (2) the last day of the month in which a person becomes an eligible head of household in the housing accommodation in which such person resides at the time of filing the most recent application for a rent exemption order; and further, except that where any other application has been received within ninety days of the issuance of the order increasing the tenant’s maximum rent pursuant to paragraph three, four or six of subdivision (a) of this section, or subparagraph (a), (b), (c), or (l) of paragraph (1) of subdivision (g) of this section or pursuant to court order, whichever is later, the rent exemption order shall without further order take effect as of the effective date of said order increasing the tenant’s rent including any retroactive increments collectible pursuant to such orders.

   (6) A rent exemption order shall be valid for a period of two years and may be renewed for further two year periods upon application by the tenant; provided, that upon any such renewal application being made by the tenant, any rent exemption order then in effect with respect to such tenant shall be deemed renewed until such time as the department of finance or such other agency as the mayor shall designate shall have found such tenant to be either eligible or ineligible for a rent exemption order but in no event for more than six additional months. If such tenant is found eligible, the order shall be deemed to have taken effect upon expiration of the exemption. In the event that any such tenant shall, subsequent to any such automatic renewal, not be granted a rent exemption order, such tenant shall be liable to his or her landlord for the difference between the amounts he or she has paid under the provisions of the automatically renewed order and the amounts which he or she would have been required to pay in the absence of such order. Any rent exemption order issued pursuant to this subdivision shall include provisions giving notice as to the contents of this paragraph relating to automatic renewals of rent exemption orders. Any application or renewal application for a rent exemption order shall also constitute an application for a tax abatement under such section. The department of finance and such other agency as the mayor shall designate may, with respect to renewal applications by tenants who have been found eligible for rent exemption orders, prescribe a simplified form including a certification of the applicant’s continued eligibility in lieu of a detailed statement of income and other qualifications.

   (7) Notwithstanding the provisions of this chapter, a tenant who resides in a housing accommodation which becomes subject to this chapter upon the sale by the city of New York of the building in which such housing accommodation is situated may be issued a rent increase exemption order for increases in rent which occurred during ownership of such building by the city of New York provided that such tenant would have been otherwise eligible to receive a rent increase exemption order at the time of such increase but for the fact that such tenant occupied a housing accommodation owned by the city of New York and was therefore not subject to this chapter. Application for such rent increase examption orders shall be made within one year from the date such building is sold by the city of New York or within one year of the effective date of this provision, whichever is later.

   (8) Notwithstanding the provisions of this chapter or chapter four of this title, when a dwelling unit is subject to regulation under this chapter or chapter four of this title is reclassified by a city rent agency order subject to the other chapter, the tenant, who holds a senior citizen rent increase exemption order or disability rent increase exemption order at the time of the reclassification or is otherwise eligible and entitled to an exemption order from one or more rent increases but for the reclassification of the dwelling unit, may be issued a rent increase exemption order under the chapter to which the unit is thereafter subject by virtue of the reclassification continuing the previous exemption notwithstanding the reclassification of the dwelling unit or, where no previous rent increase exemption order has been granted, issuing an initial order exempting the tenant from paying the rent increase to the extent for which he or she would have been eligible and entitled to be exempted at the time of the increase and reclassification but for the fact of reclassification of the dwelling unit including exemption from the rent increase granted pursuant to subparagraph (m) of paragraph one of subdivision g of this section to the extent that it is not predicated upon any improvement or addition in a category as provided for in subparagraph (d), (e), (f), (g), (h) or (i) of paragraph one of subdivision g of this section. Application for such rent increase exemption order shall be made within ninety days from the date of reclassification or within ninety days of the effective date of this paragraph, whichever is later. The rent increase exemption order shall take effect as of the effective date of reclassification including any retroactive increments pursuant to such rent increase.

   (9) Notwithstanding any other provision of law to the contrary, where a head of household holds a current, valid rent exemption order and, after the effective date of this paragraph, there is a permanent decrease in aggregate disposable income in an amount which exceeds twenty percent of such aggregate disposable income as represented in such head of the household’s last approved application for a rent exemption order or for renewal thereof, such head of the household may apply for a redetermination of the amount set forth therein. Upon application, such amount shall be redetermined so as to re-establish the ratio of adjusted rent to aggregate disposable income which existed at the time of the approval of such eligible head of the household’s last application for a rent exemption order or for renewal thereof; provided, however, that in no event shall the amount of the adjusted rent be redetermined to be (i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, less than one-third of the aggregate disposable income unless such head of the household has been granted a rent exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen; or (ii) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, less than the maximum allowance for shelter which such head of the household is entitled to receive pursuant to such law. For purposes of this paragraph, a decrease in aggregate disposable income shall not include any decrease in such income resulting from the manner in which such income is calculated pursuant to any amendment to paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law, any amendment to the regulations of the department of finance made on or after the effective date of the local law that added this clause, or any amendment to the regulations of such other agency as the mayor shall designate made on or after October tenth, two thousand five. For purposes of this paragraph, “adjusted rent” shall mean maximum rent less the amount set forth in a rent exemption order.

§ 26-405.1 Major capital improvements and individual apartment improvements in rent regulated units.

  1. Notwithstanding any other provision of law to the contrary, the division of housing and community renewal, the “division”, shall promulgate rules and regulations applicable to all rent regulated units that shall:

   (1) establish a schedule of reasonable costs for major capital improvements, which shall set a ceiling for what can be recovered through a temporary major capital improvement increase, based on the type of improvement and its rate of depreciation;

   (2) establish the criteria for eligibility of a temporary major capital improvement increase including the type of improvement, which shall be essential for the preservation, energy efficiency, functionality or infrastructure of the entire building, including heating, windows, plumbing and roofing, but shall not be for operational costs or unnecessary cosmetic improvements. Allowable improvements must additionally be depreciable pursuant to the Internal Revenue Service, other than for ordinary repairs, that directly or indirectly benefit all tenants; and no increase shall be approved for group work done in individual apartments that is otherwise not an improvement to an entire building. Only such costs that are actual, reasonable, and verifiable may be approved as a temporary major capital improvement increase;

   (3) require that any temporary major capital improvement increase granted pursuant to these provisions be reduced by an amount equal to (i) any governmental grant received by the landlord, where such grant compensates the landlord for any improvements required by a city, state or federal government, an agency or any granting governmental entity to be expended for improvements and (ii) any insurance payment received by the landlord where such insurance payment compensates the landlord for any part of the costs of the improvements;

   (4) prohibit temporary major capital improvement increases for buildings with outstanding hazardous or immediately hazardous violations of the Uniform Fire Prevention and Building Code (Uniform Code), New York City Fire Code, or New York City Building and Housing Maintenance Codes, if applicable;

   (5) prohibit individual apartment improvement increases for housing accommodations with outstanding hazardous or immediately hazardous violations of the Uniform Fire Prevention and Building Code (Uniform Code), New York City Fire Code, or New York City Building and Housing Maintenance Codes, if applicable;

   (6) prohibit temporary major capital improvement increases for buildings with thirty-five per centum or fewer rent-regulated units;

   (7) establish that temporary major capital improvement increases shall be fixed to the unit and shall cease thirty years from the date the increase became effective. Temporary major capital improvement increases shall be added to the legal regulated rent as a temporary increase and shall be removed from the legal regulated rent thirty years from the date the increase became effective inclusive of any increases granted by the local rent guidelines board;

   (8) establish that temporary major capital improvement increases shall be collectible prospectively on the first day of the first month beginning sixty days from the date of mailing notice of approval to the tenant. Such notice shall disclose the total monthly increase in rent and the first month in which the tenant would be required to pay the temporary increase. An approval for a temporary major capital improvement increase shall not include retroactive payments. The collection of any increase shall not exceed two percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the rent as established or set in future years. Upon vacancy, the landlord may add any remaining balance of the temporary major capital improvement increase to the legal regulated rent. Notwithstanding any other provision of the law, for any renewal lease commencing on or after June 14, 2019, the collection of any rent increases due to any major capital improvements approved on or after June 16, 2012 and before June 16, 2019 shall not exceed two percent in any year for any tenant in occupancy on the date the major capital improvement was approved;

   (9) ensure that the application procedure for temporary major capital improvement increases shall include an itemized list of work performed and a description or explanation of the reason or purpose of such work;

   (10) provide, that where an application for a major capital improvement rent increase has been filed, a tenant shall have sixty days from the date of mailing of a notice of a proceeding in which to answer or reply;

   (11) establish a notification and documentation procedure for individual apartment improvements that requires an itemized list of work performed and a description or explanation of the reason or purpose of such work, inclusive of photographic evidence documenting the condition prior to and after the completion of the performed work. Provide for the centralized electronic retention of such documentation and any other supporting documentation to be made available in cases pertaining to the adjustment of legal regulated rents; and

   (12) establish a form in the top six languages other than English spoken in the state according to the latest available data from the U.S. Bureau of Census for a temporary individual apartment improvement rent increase for a tenant in occupancy which shall be used by landlords to obtain written informed consent that shall include the estimated total cost of the improvement and the estimated monthly rent increase. Such form shall be completed and preserved in the centralized electronic retention system to be operational by June 14, 2020. Nothing herein shall relieve a landlord, lessor, or agent thereof of his or her duty to retain proper documentation of all improvements performed or any rent increases resulting from said improvements.

  1. The division shall establish an annual inspection and audit process which shall review twenty-five percent of applications for a temporary major capital improvement increase that have been submitted and approved. Such process shall include individual inspections and document review to ensure that owners complied with all obligations and responsibilities under the law for temporary major capital improvement increases. Inspections shall include in-person confirmation that such improvements have been completed in such way as described in the application.
  2. The division shall issue a notice to the landlord and all the tenants sixty days prior to the end of the temporary major capital improvement increase and shall include the initial approved increase and the total amount to be removed from the legal regulated rent inclusive of any increases granted by the applicable rent guidelines board.

§ 26-406 Tax abatement for properties subject to rent exemption orders.

  1. Tax abatement, pursuant to the provisions of section four hundred sixty-seven-b of the real property tax law, shall be granted with respect to any real property for which a rent exemption order is issued under subdivision m of section 26-405 of this chapter to the tenant of any housing accommodation contained therein. The rent exemption order shall constitute the tax abatement certificate.
  2. The real estate tax imposed upon any real property for which a rent exemption order is issued, shall be reduced and abated by an amount equal to the difference between (1) the sum of the maximum rents collectible under such orders, and (2) the sum of rents that would be collectible from the tenants of such housing accommodations if no exemption had been granted pursuant to subdivision m of section 26-405 of this chapter.
  3. For any individual housing accommodation, the tax abatement computed pursuant to subdivision b of this section shall be available with respect to a period commencing on the effective date of the initial rent exemption order, or January first, nineteen hundred seventy-two, whichever is later, and ending on the expiration date of such order or on the effective date of an order terminating the rent exemption. Notwithstanding any other provision of law, when a head of a household to whom a then current, valid tax abatement certificate has been issued under this chapter, chapter four or chapter seven of this title moves his or her principal residence to a subsequent dwelling unit subject to regulation under this chapter, the head of the household may apply to the department of finance or such other agency as the mayor shall designate for a tax abatement certificate relating to the subsequent dwelling unit, and such certificate may provide that the head of the household shall be exempt from paying that portion of the maximum rent for the subsequent dwelling unit which is the least of the following:

   (1) the amount by which the rent for the subsequent dwelling unit exceeds the last rent, as reduced, which the head of the household was required to actually pay in the original dwelling unit;

   (2) the last amount deducted from the maximum rent or legal regulated rent meaning the most recent monthly deduction for the applicant in the original dwelling unit pursuant to this section, section 26-509 or section 26-605 of this title; or

   (3) where the head of the household does not receive a monthly allowance for shelter pursuant to the social services law, the amount by which the maximum rent or legal regulated rent of the subsequent dwelling unit exceeds one-third of the combined income of all members of the household except that this paragraph shall not apply to an eligible head of the household who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen.

Such certificate shall be effective as of the first day of the month in which the tenant applied for such exemption or as of the date the tenant took occupancy of the subsequent dwelling unit, whichever is later, provided both occur after the effective date of this law.

  1. Prior to the commencement of each fiscal year, the department of finance shall determine the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders granted to persons sixty-two years of age or older were in effect for all or any part of the preceding calendar year. Prior to the commencement of each fiscal year, such agency as the mayor shall designate shall determine and, if such agency is not the department of finance, shall notify the department of finance of the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders granted to persons with disabilities were in effect for all or any part of the preceding calendar year. The commissioner of finance shall make the appropriate adjustment in the real estate tax payable in such fiscal year.
  2. Tax abatement pursuant to this section shall be in addition to any other tax abatement authorized by law, but shall not reduce the tax for any fiscal year below zero. In the event that the tax abatement certificate authorizes an amount of deduction in excess of the real estate installment, then the balance may be applied to any subsequent installment until exhausted. In such a case the owner shall submit with his or her real estate tax bill and remittance, a verified statement in such form as prescribed by the commissioner of finance setting forth the carry over amount and the amounts previously applied; provided, however, that at the request of the owner such balance shall be paid to the owner by the commissioner of finance in lieu of being applied to any subsequent installment, except where the owner is in arrears in the payment of real estate taxes on any property. For the purposes of this subdivision, where the owner is a corporation, it shall be deemed to be in arrears when any of the officers, directors or any person holding an interest in more than ten percent of the issued and outstanding stock of such corporation is in arrears in the payment of real estate taxes on any property; where title is held by a nominee, the owner shall be deemed to be in arrears when the person for whose benefit such title is held is in arrears in the payment of real estate taxes on any property.

§ 26-407 Labor cost pass-along.

  1. Notwithstanding any provisions of this chapter, any labor cost pass-along rent increase requested of, or received from, any tenant on or after July first, nineteen hundred seventy-two, pursuant to the provisions of subparagraph (1) of paragraph one of subdivision g of section 26-405 of this title, shall not exceed the maximum rent adjustment as provided under this chapter after the effective date of this section.
  2. All such increases in excess of such maximum rent are hereby declared null and void and of no effect. A tenant who paid any such excess increase shall be repaid by a cash refund or credit, to be applied against future rent, in equal installments for the same number of months for which such increase was actually collected, commencing on January first, nineteen hundred seventy-eight.

§ 26-407.1 Fuel pass-along to tenants under rent control prohibited.

Notwithstanding any other provision of law, rule, regulation, charter or administrative code, tenants of housing accommodations which are subject to rent control under this chapter shall not be subject to a fuel adjustment or pass-along increase in rent and any such increase to such tenant shall be null and void.

§ 26-408 Evictions.

  1. No tenant, so long as he or she continues to pay the rent to which the landlord is entitled, shall be removed from any housing accommodation which is subject to rent control under this chapter by action to evict or to recover possession, by exclusion from possession, or otherwise, nor shall any person attempt such removal or exclusion from possession notwithstanding the fact that the tenant has no lease or that his or her lease, or other rental agreement, has expired or otherwise terminated, notwithstanding any contract, lease agreement, or obligation heretofore or hereafter entered into which provides for surrender of possession, or which otherwise provides contrary hereto, except on one or more of the following grounds, or unless the landlord has obtained a certificate of eviction pursuant to subdivision b of this section:

   (1) The tenant is violating a substantial obligation of his or her tenancy other than the obligation to surrender possession of such housing accommodation and has failed to cure such violation after written notice by the landlord that the violation cease within ten days, or within the three month period immediately prior to the commencement of the proceeding the tenant has wilfully violated such an obligation inflicting serious and substantial injury to the landlord; or

   (2) The tenant is committing or permitting a nuisance in such housing accommodation; or is maliciously or by reason of gross negligence substantially damaging the housing accommodation; or his or her conduct is such as to interfere substantially with the comfort and safety of the landlord or of other tenants or occupants of the same or other adjacent building or structure; or

   (3) Occupancy of the housing accommodation by the tenant is illegal because of the requirements of law, and the landlord is subject to civil or criminal penalties therefor, or both, provided, however, that such occupancy shall not be considered illegal by reason of violations placed against the housing accommodations or the building in which same are located by any department or agency of the city having jurisdiction unless such department or agency has issued an order requiring the tenants to vacate said accommodation or building or unless such occupancy for such building or such violations relied on by the landlord result from an act, omission or situation caused or created by the tenant; or

   (4) The tenant is using or permitting such housing accommodation to be used for an immoral or illegal purpose; or

   (5) The tenant who had a written lease or other written rental agreement which terminated or shall terminate on or after May first, nineteen hundred fifty, has refused upon demand of the landlord to execute a written extension or renewal thereof for a further term of like duration not in excess of one year but otherwise on the same terms and conditions as the previous lease except in so far as such terms and conditions are inconsistent with this chapter; or

   (6) The tenant has unreasonably refused the landlord access to the housing accommodation for the purpose of making necessary repairs or improvements required by law or for the purpose of inspection or of showing the accommodation to a prospective purchaser, mortgagee or prospective mortgagee, or other person having a legitimate interest therein; provided, however, that in the latter event such refusal shall not be ground for removal or eviction if such inspection or showing of the accommodation is contrary to the provisions of the tenant’s lease or other rental agreement.

   (7) The eviction is sought by the owner of a dwelling unit or the shares allocated thereto where such dwelling unit is located in a structure owned as a cooperative or as a condominium and an offering prospectus for the conversion of such structure pursuant to an eviction plan shall have been submitted to the attorney general pursuant to section three hundred fifty-two-eeee of the general business law and accepted for filing by the attorney general, and been declared effective in accordance with such law, and any right of continued occupancy granted by such law to a non-purchasing tenant in occupancy of such dwelling unit shall have expired; provided that the owner of the dwelling unit or the shares allocated thereto seeks in good faith to recover possession of a dwelling unit for his or her own personal use and occupancy or for the use and occupancy of his or her immediate family.

  1. No tenant shall be removed or evicted on grounds other than those stated in subdivision a of this section unless on application of the landlord the city rent agency shall issue an order granting a certificate of eviction in accordance with its rules and regulations designed to effectuate the purposes of this title, permitting the landlord to pursue his or her remedies at law. The city rent agency shall issue such an order whenever it finds that:

   (1) The landlord seeks in good faith to recover possession of a housing accommodation because of immediate and compelling necessity for his or her own personal use and occupancy as his or her primary residence or for the use and occupancy of his or her immediate family as their primary residence provided, however, that this subdivision shall permit recovery of only one housing accommodation and shall not apply where a member of the household lawfully occupying the housing accommodation is sixty-two years of age or older, has been a tenant in a housing accommodation in that building for fifteen years or more, or has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques, and which are expected to be permanent and which prevent the tenant from engaging in any substantial gainful employment; provided, further, that a tenant required to surrender a housing accommodation by virtue of the operation of subdivision g or h of this section shall have a cause of action in any court of competent jurisdiction for damages, declaratory, and injunctive relief against a landlord or purchaser of the premises who makes a fraudulent statement regarding a proposed use of the housing accommodation. In any action or proceeding brought pursuant to this paragraph a prevailing tenant shall be entitled to recovery of actual damages, and reasonable attorneys’ fees; or

   (2) The landlord seeks in good faith to recover possession of a housing accommodation for which the tenant’s lease or other rental agreement has expired or otherwise terminated, and at the time of termination the occupants of the housing accommodation are subtenants or other persons who occupied under a rental agreement with the tenant, and no part of the accommodation is used by the tenant as his or her dwelling; or

   (3) The landlord seeks in good faith to recover possession of a housing accommodation for the immediate purpose of substantially altering or remodeling it, provided that the landlord shall have secured such approval therefor as is required by law and the city rent agency determines that the issuance of the order granting the certificate of eviction is not inconsistent with the purpose of this chapter; or

   (4) The landlord seeks in good faith to recover possession of housing accommodations for the immediate purpose of demolishing them, and the city rent agency determines that such demolition is to be effected for the purpose of constructing a new building, provided that:

      (a) If the purpose of such demolition is to construct a new building containing housing accommodations, no certificate of eviction shall be granted under this paragraph unless such agency determines that such new building will contain at least twenty per centum more housing accommodations consisting of self-contained family units (as defined by regulations issued by such agency, with due regard for the shortage of housing accommodations suitable for family occupancy and for the purposes of this chapter in relation thereto) than are contained in the structure to be demolished; except, however, that where as a result of conditions detrimental to life or health of the tenants, violations have been placed upon the structure containing the housing accommodations by any agency of the city having jurisdiction over such matters and the cost of removing such violations would be substantially equal to or would exceed the assessed valuation of the structure, the new building shall only be required to make provision for a greater number of housing accommodations consisting of self-contained family units (as so defined by regulation) than are contained in the structure to be demolished; and

      (b) The city rent agency shall, by regulation, as a condition to the granting of certificates of eviction under this paragraph, require the relocation of the tenants in other suitable accommodations, provided that the city rent agency may, by regulation, authorize the granting of such certificates as to any tenants or classes of tenants without such requirement of relocation, where such exemption will not result in hardship to such tenants or classes of tenants and will not be inconsistent with the purposes of this chapter; and

      (c) The city rent agency may, by regulation, in order to carry out the purposes of this chapter, impose additional conditions to the granting of certificates of eviction under this paragraph, including, but not limited to, the payment of stipends to the tenants by the landlord in such amounts and subject to such variations and classifications as such agency may determine to be reasonably necessary; and

      (d) No certificate of eviction shall be issued pursuant to this paragraph unless the landlord shall have secured such approval as is required by law for the construction sought to be effected, and the city rent agency determines that the issuance of such certificate is not inconsistent with the purpose of this chapter.

   (5) Notwithstanding any provisions to the contrary contained in this subdivision or in subdivision d of section 26-410 of this chapter or in the local emergency housing rent control act:

      (a) no application for a certificate of eviction under paragraph three or four of this subdivision and no application for a certificate of eviction under paragraph one of subdivision j or under subdivision c of this section for the purpose of withdrawing a housing accommodation from the housing market on the grounds that the continued operation of such housing accommodation would impose undue hardship upon the landlord, pending or made on or after the effective date hereof shall be granted by the city rent agency unless the city rent agency finds that there is no reasonable possibility that the landlord can make a net annual return of eight and one-half per centum of the assessed value of the subject property without recourse to the remedy provided in said paragraph three or four or said subdivision c or j and finds that neither the landlord nor his or her immediate predecessor in interest has intentionally or willfully managed the property to impair the landlord’s ability to earn such return; and

      (b) the effectiveness of any certificate of eviction or of any order granting a certificate of eviction pursuant to paragraphs three and four of this subdivision shall be suspended, and no tenant may be evicted pursuant to any such certificate or order, unless the city rent agency:

         (i) finds that there is no reasonable possibility that the landlord can make a net annual return of eight and one-half per centum of the assessed value of the subject property without recourse to the remedy provided in said paragraphs three and four and finds that neither the landlord nor his or her immediate predecessor in interest has intentionally or willfully managed the property to impair the landlord’s ability to earn such return; and

         (ii) issues an order reinstating the effectiveness of any certificate of eviction suspended pursuant to this paragraph. The pendency of any judicial proceeding or appeal shall in no way prevent the taking effect of the relief granted in this subparagraph.

      (c) the provisions of this paragraph shall not apply to an application for a certificate of eviction from a housing accommodation when the landlord seeks in good faith to recover possession thereof for the immediate purpose of substantially altering or remodelling it or for the immediate purpose of demolishing it for the purpose of constructing a new building when such altering or remodelling or the construction of such new building is to be aided by interest reduction payments under section two hundred thirty-six of the national housing act.

   (6) Neither the provisions of subparagraph (a) of paragraph four of this subdivision, which require that the new building contain more than or equal to the number of housing accommodations that are contained in the structure to be demolished or substantially altered or remodeled nor the provisions of paragraph five of this subdivision shall apply with respect to any building in which there remains (A) three or fewer occupied apartments which constitute ten percent or less of the total dwelling units in the building or (B) one occupied apartment if the building contains ten or fewer apartments but only on the condition that the tenant is provided with the relocation, moving expense, stipend and any other benefits provided under the corresponding provisions of the rent stabilization law of nineteen hundred sixty-nine. In the event of a substantial alteration or remodeling of a building falling within the limitations of this paragraph, all of the relocation provisions available to an owner for demolition shall apply.

  1. The city rent agency may from time to time, to effectuate the purposes of this chapter, adopt, promulgate, amend or rescind such rules, regulations or orders as it may deem necessary or proper for the control of evictions. Any such rules, regulations or orders may include, in addition to any other provisions authorized by this subdivision, provisions restricting the filing of applications for, or the issuance of orders granting, certificates of eviction where such agency finds that a course of conduct has been engaged in which is proscribed by subdivision d of section 26-412 of this chapter. The agency shall also require, prior to the filing of plans with the department of buildings for a new building or alteration on the site of controlled housing accommodations and prior to the filing of an application for a permit for the demolition or removal of an existing multiple dwelling which contains controlled housing accommodations, that the applicant certify to and file with the agency such information and give such notice to tenants as it deems necessary to prevent evasion of the law and regulations governing evictions. It may also require that an order granting a certificate of eviction be obtained from it prior to the institution of any action or proceeding for the recovery of possession of any housing accommodation subject to rent control under this chapter upon the grounds specified in subdivision b of this section or where it finds that the requested removal or eviction is not inconsistent with the purposes of this chapter and would not be likely to result in circumvention or evasion thereof; provided, however, that no such order shall be required in any action or proceeding brought pursuant to the provisions of subdivision a of this section.
    1. The city rent agency, on its own initiative or on application of a tenant, may revoke or cancel an order granting a certificate of eviction at any time prior to the execution of a warrant in a summary proceeding to recover possession of real property by a court whenever it finds that:

      (a) The certificate of eviction was obtained by fraud or illegality; or

      (b) The landlord’s intentions or circumstances have so changed that the premises, possession of which is sought, will not be used for the purpose specified in the certificate.

   (2) The commencement of a proceeding by the city rent agency to revoke or cancel an order granting a certificate of eviction shall stay such order until the final determination of the proceeding regardless of whether the waiting period in the order has already expired. In the event the city rent agency cancels or revokes such an order, the court having jurisdiction of any summary proceeding instituted in such case shall take appropriate action to dismiss the application for removal of the tenant from the real property and to vacate and annul any final order or warrant granted or issued by the court in the matter.

  1. Notwithstanding the preceding provisions of this section, the state, the city, or the New York city housing authority may recover possession of any housing accommodations operated by it where such action or proceeding is authorized by statute or regulations under which such accommodations are administered.
  2. Any order of the city rent agency under this section granting a certificate of eviction shall be subject to judicial review only in the manner prescribed by subdivision eight of section one of the state enabling act and sections 26-410 and 26-411 of this chapter.
    1. Where after the city rent agency has granted a certificate of eviction authorizing the landlord to pursue his or her remedies pursuant to law to acquire possession and a tenant voluntarily removes from a housing accommodation or has been removed therefrom by action or proceeding to evict from or recover possession of a housing accommodation upon the ground that the landlord seeks in good faith to recover possession of such accommodation:

      (a) For his or her immediate and personal use, or for the immediate and personal use by a member or members of his or her immediate family, and such landlord or members of his or her immediate family shall fail to occupy such accommodation within thirty days after the tenant vacates, or such landlord shall lease or rent such space or permit occupancy thereof by a third person within a period of one year after such removal of the tenant; or

      (b) For the immediate purpose of withdrawing such housing accommodation from the rental market and such landlord shall lease or sell the housing accommodation or the space previously occupied thereby, or permit use thereof in a manner other than contemplated in such eviction certificate within a period of one year after such removal of the tenant; or

      (c) For the immediate purpose of altering or remodeling such housing accommodation, and the landlord shall fail to start the work of alteration or remodeling of such housing accommodation within ninety days after the removal, on the ground that he or she required possession for the purpose of effecting such alteration or remodeling, of the last tenant whose removal is necessary to enable the landlord to effect such alteration or remodeling of such accommodation, or if after having commenced such work shall fail or neglect to prosecute the work with reasonable diligence; or

      (d) For the immediate purpose of demolishing such housing accommodations and constructing a new building in accordance with approved plans, or reasonable amendment thereof, and the landlord has failed to complete the demolition within six months after the removal of the last tenant or, having demolished the premises, has failed or neglected to proceed with the new construction within ninety days after the completion of such demolition, or having commenced such construction work has failed or neglected to prosecute such work with reasonable diligence; or

      (e) For some purpose other than those specified above for which the removal of the tenant was sought and the landlord has failed to use the vacated premises for such purpose; such landlord shall, unless for good cause shown, be liable to the tenant for three times the damages sustained on account of such removal plus reasonable attorney’s fees and costs as determined by the court. In addition to any other damage, the cost of removal of property shall be a lawful measure of damage. The remedy herein provided for shall be in addition to those provided for in subdivision h of this section, paragraph (a) of subdivision ten of section one of the state enabling act and subdivision a of section 26-413 of this chapter.

   (2) The acts and omissions mentioned in subparagraphs (a), (b), (c), (d) and (e) of paragraph one of this subdivision, on the part of a landlord after issuance of a certificate of eviction, are hereby declared to be inconsistent with the purposes for which such certificate of eviction was issued.

  1. Where after the city rent agency has granted a certificate of eviction authorizing the landlord to pursue his or her remedies pursuant to law to acquire possession for any purpose stated in subdivision b or j of this section or for some other stated purpose, and a tenant voluntarily removes from a housing accommodation or has been removed therefrom by action or proceeding to evict from or recover possession of a housing accommodation and the landlord or any successor landlord of the premises does not use the housing accommodation for the purpose specified in such certificate of eviction, the vacated accommodation or any replacement or subdivision thereof shall, unless the city rent agency approves such different purpose, be deemed a housing accommodation subject to control, notwithstanding any definition of that term in this chapter to the contrary. Such approval shall be granted whenever the city rent agency finds that the failure or omission to use the housing accommodation for the purpose specified in such certificate was not inconsistent with the purpose of this chapter and would not be likely to result in the circumvention or evasion thereof. The remedy herein provided for shall be in addition to those provided for in subdivision g of this section, paragraph (a) of subdivision ten of section one of the state enabling act and subdivision a of section 26-413 of this chapter.
  2. Any statutory tenant who vacates a housing accommodation without giving the landlord at least thirty days’ written notice by registered or certified mail of his or her intention to vacate, shall be liable to the landlord for the loss of rent suffered by the landlord, but not exceeding one month’s rent, except where the tenant has been removed or vacates pursuant to the provisions of this section. Such notice shall be postmarked on or before the last day of the rental period immediately prior to such thirty-day period.
    1. Nothing in this chapter shall be construed to require any person to offer any housing accommodations for rent, but housing accommodations already on the rental market may be withdrawn only after prior written approval of the city rent agency, if such withdrawal requires that a tenant be evicted from such accommodations.

   (2) The city rent agency, in order to carry out the purposes of this chapter, may issue regulations providing for issuance of certificates of eviction in any case where the landlord seeks such approval in order to use the premises (including the building or land) (a) for the purpose of conducting a business, or (b) where the landlord is a hospital, convent, asylum, public institution, college, school or any institution operated exclusively for charitable, religious or educational purposes on a non profit basis and the landlord seeks such approval in order to use the premises (including the building or land) or any part thereof in connection with the landlord’s charitable, religious or educational purposes; such agency, if it grants approval, shall condition same upon compliance by the landlord with designated requirements which may consist of any conditions that such agency would have authority to prescribe by regulation under subparagraphs (b) and (c) of paragraph four of subdivision b of this section with respect to applications for certificates of eviction under such paragraph four provided, however, that such agency shall not condition any such approval granted to a hospital, convent, asylum, public institution, college, school, or any institution operated exclusively for charitable, religious or educational purposes upon compliance with requirements exceeding or less than those applicable to any private owner in similar circumstances. Nothing contained in this paragraph shall be construed as authorizing or requiring such agency to approve the withdrawal of any housing accommodations from the rental market by any landlord for the purpose of using the premises for any business other than one in existence and conducted by such landlord at the time such withdrawal is sought. No certificate of eviction shall be issued to a nonprofit school, college, hospital, or other charitable institution, including without limitation, any organization exempt from taxation under the Federal Internal Revenue Code, which seeks to recover possession of the housing accommodations or to withdraw such accommodations from the rental or non-rental housing market, for immediate and personal use and occupancy as housing accommodations by its employees, students or members of its staff.

  1. The city rent agency by order issued pursuant to its regulations may waive the requirements of subdivision b of this section where (1) the housing accommodations were vacant at the time when landlord made application for such waiver, and (2) were vacated by reason of the last tenant’s voluntary surrender thereof, and (3) the landlord, in good faith, intends to demolish or substantially rehabilitate the building in which the housing accommodations are located within a period approved by the city rent agency. The failure of the landlord to comply with the conditions established by the city rent agency for the granting of the application shall subject the housing accommodations to all the provisions of this chapter.

§ 26-409 Investigation; records; reports.

  1. The city rent agency is authorized to make such studies and investigations, to conduct such hearings, and to obtain such information as it deems necessary or proper in prescribing any regulation or order pursuant to this chapter or in administering and enforcing this chapter and the regulations and orders thereunder or the state rent act and the regulations and orders thereunder.
  2. The city rent agency is further authorized, by regulation or order, to require any person who rents or offers for rent or acts as broker or agent for the rental of any housing accommodations to furnish any such information under oath or affirmation, or otherwise, to make and keep records and other documents, and to make reports, including, but not limited to, reports with respect to decontrolled or exempt housing accommodations, and the city rent agency may require any such person to permit the inspection and copying of records and other documents and the inspection of housing accommodations. Any officer or agent designated by the city rent agency for such purposes may administer oaths and affirmations and may, whenever necessary, by subpoena, require any such person to appear and testify or to appear and produce documents, or both, at any designated place.
  3. For the purpose of obtaining any information under this section, the city rent agency may by subpoena require any other person to appear and testify or to appear and produce documents, or both, at any designated place.
  4. The production of a person’s documents at any place other than his or her place of business shall not be required under this section in any case in which, prior to the return date specified in the subpoena issued with respect thereto, such person either has furnished the city rent agency with a copy of such documents certified by such person under oath to be a true and correct copy, or has entered into a stipulation with the city rent agency as to the information contained in such documents.
  5. In case of contumacy by, or refusal to obey a subpoena served upon, any person referred to in this section, the supreme court in or for any judicial district in which such person is found or resides or transacts business, upon application by the city rent agency, shall have jurisdiction to issue an order requiring such person to appear and give testimony or to appear and produce documents, or both; and any failure to obey such order of the court may be punished by such court as a contempt thereof. The provisions of this subdivision e shall be in addition to the provisions of paragraph (a) of subdivision nine of section one of the state enabling act and subdivision a of section 26-412 of this chapter.
  6. Witnesses subpoenaed under this section shall be paid the same fee and mileage as are paid witnesses pursuant to the civil practice law and rules.
  7. Upon any such investigation or hearing, the city rent agency, or an officer duly designated by the city rent agency to conduct such investigation or hearing, may confer immunity in accordance with the provisions of the criminal procedure law.
  8. The city rent agency shall not publish or disclose any information obtained under this chapter that the city rent agency deems confidential or with reference to which a request for confidential treatment is made by the person furnishing such information, unless the city rent agency determines that the withholding thereof is contrary to the public interest.
  9. Any person subpoenaed under this section shall have the right to make a record of his or her testimony and to be represented by counsel.
  10. Without limiting any power granted by this section or any other provision of law, the city rent agency may by regulation require the owner of a building or property containing both housing accommodations subject to this chapter and housing accommodations subject to chapter four of this title to execute and file registration statements with respect to the housing accommodations subject to this chapter along with those filed pursuant to such chapter four. Notwithstanding any other provisions of law, such agency may promulgate regulations, and take other necessary or appropriate actions, pursuant to this subdivision prior to April first, nineteen hundred eighty-four, to take effect on or after such date.

§ 26-410 Procedure.

  1. After the issuance of any regulation or order by the city rent agency, any person subject to any provision of such regulation or order may, in accordance with regulations to be prescribed by such agency, file a protest against such regulation or order specifically setting forth his or her objections to any such provisions and affidavits or other written evidence in support of such objections. Statements in support of any such regulation or order may be received and incorporated in the record of the proceedings at such times and in accordance with such regulations as may be prescribed by such agency.Within a reasonable time after the filing of any protest under this section, such agency shall either grant or deny such protest in whole or in part, notice such protest for hearing, or provide an opportunity to present further evidence in connection therewith. In the event that such agency denies any such protest in whole or in part, it shall inform the protestant of the grounds upon which such decision is based, and of any economic data and other facts of which it has taken official notice.
  2. In the administration of this chapter, the city rent agency may take official notice of economic data and other facts, including facts found by it as a result of action taken under section 26-405 of this chapter.
  3. Any proceedings under this section may be limited by the city rent agency to the filing of affidavits, or other written evidence, and the filing of briefs, except that no multiple-tenant initiated proceeding for the reduction of rents in a building may be determined without a hearing.
  4. Any protest filed under this section shall be granted or denied by the city rent agency, or granted in part and the remainder of it denied, within a reasonable time after it is filed. If such agency does not act finally within a period of ninety days after the protest is filed, the protest shall be deemed to be denied. However, such agency may grant one extension not to exceed thirty days with the consent of the party filing such protest; any further extension may only be granted with the consent of all parties to the protest. No proceeding may be brought pursuant to article seventy-eight of the civil practice law and rules to challenge any order or determination which is subject to such protest unless such review has been sought and either (1) a determination thereon has been made or (2) the ninety-day period provided for determination of the protest (or any extension thereof) has expired. If such agency does not act finally within a period of ninety days after the entry of an order of remand to such agency by the court in a proceeding instituted pursuant to subdivision eight of section one of the state enabling act or section 26-411 of this chapter, the order previously made by such agency shall be deemed reaffirmed. However, such agency may grant one extension not to exceed thirty days with the consent of the petitioner; any further extension may only be granted with the consent of all parties to the petition.
  5. The city rent agency shall compile and make available for public inspection at reasonable hours at its principal office and at each appropriate local office a copy of each decision rendered by it upon granting, or denying, in whole or in part, any protests filed under this section and shall have available at each appropriate local office a register of properties concerning which a vacate order was issued by a city department having jurisdiction or proceedings have been brought to determine whether any housing accommodations therein became vacant as a result of conduct proscribed by subdivision d of section 26-412 of this chapter.

§ 26-411 Judicial review.

    1. Any person who is aggrieved by the final determination of the city rent agency in an administrative proceeding protesting a regulation or order of such agency may, in accordance with article seventy-eight of the civil practice law and rules, within sixty days after such determination, commence a proceeding in the supreme court. The petition shall specify his or her objections and pray that the regulation or order protested be enjoined or set aside in whole or in part. Such proceeding may at the option of the petitioner be instituted in the county where the city rent agency has its principal office or where the property is located. The city rent agency shall file with such court the original or a transcript of such portions of the proceedings in connection with its final determination as are material under the petition. Such return shall include a statement setting forth, so far as practicable, the economic data and other facts of which the city rent agency has taken official notice. Upon the filing of such petition the court shall have jurisdiction to set aside the regulation or order protested, in whole or in part, to dismiss the petition, or to remit the proceeding to the city rent agency, provided, however, that the regulation or order may be modified or rescinded by the city rent agency at any time notwithstanding the pendency of such proceeding for review.

   (2) No objection to such regulation or order, and no evidence in support of any objection thereto, shall be considered by the court, unless such objection shall have been presented to the city rent agency by the petitioner in the proceedings resulting in the determination or unless such evidence shall be contained in the return. If application is made to the court by either party for leave to introduce additional evidence which was either offered and not admitted or which could not reasonably have been offered or included in such proceedings before the city rent agency, and the court determines that such evidence should be admitted, the court shall order the evidence to be presented to the city rent agency. The city rent agency shall promptly receive the same, and such other evidence as the city rent agency deems necessary or proper, and thereupon the city rent agency shall file with the court the original or a transcript thereof and any modification made in such regulation or order as a result thereof; except that on request by the city rent agency, any such evidence shall be presented directly to the court. Upon final determination of the proceeding before the court, the original record, if filed by the city rent agency with the court, shall be returned to the city rent agency.

  1. No regulation or order of the city rent agency shall be enjoined or set aside, in whole or in part, unless the petitioner shall establish to the satisfaction of the court that the regulation or order is not in accordance with law, or is arbitrary or capricious. The effectiveness of an order of the court enjoining or setting aside, in whole or in part, any such regulation or order shall be postponed until the expiration of thirty days from the entry thereof. The jurisdiction of the supreme court shall be exclusive and its order dismissing the petition or enjoining or setting aside such regulation or order, in whole or in part, shall be final, subject to review by the appellate division of the supreme court and the court of appeals in the same manner and form and with the same effect as provided in the civil practice law and rules for appeals from a final order in a special proceeding. Notwithstanding any provision of paragraph one of subdivision (b) of section five thousand seven hundred one of the civil practice law and rules to the contrary, any order of the court remitting the proceeding to the city rent agency may, at the election of the city rent agency, be subject to review by the appellate division of the supreme court and the court of appeals in the same manner and form and with the same effect as provided in the civil practice law and rules for appeals from a final order in a special proceeding. All such proceedings shall be heard and determined by the court and by any appellate court as expeditiously as possible and with lawful precedence over other matters. All such proceedings for review shall be heard on the petition, manuscript and other papers, and on appeal shall be heard on the record, without requirement of printing.
  2. Within thirty days after arraignment, or such additional time as the court may allow for good cause shown, in any criminal proceeding, and within five days after judgment in any civil or criminal proceeding, brought pursuant to subdivision ten of section one of the state enabling act or section 26-413 of this chapter involving alleged violation of any provision of any regulation or order of the city rent agency, the defendant may apply to the court in which the proceeding is pending for leave to file in the supreme court a petition setting forth objections to the validity of any provision which the defendant is alleged to have violated or conspired to violate. The court in which the proceeding is pending shall grant such leave with respect to any objection which it finds is made in good faith and with respect to which it finds there is reasonable and substantial excuse for the defendant’s failure to present such objection in an administrative proceeding before the city rent agency. Upon the filing of a petition pursuant to and within thirty days from the granting of such leave, the supreme court shall have jurisdiction to enjoin or set aside in whole or in part the provision of the regulation or order complained of or to dismiss the petition. The court may authorize the introduction of evidence, either to the city rent agency or directly to the court, in accordance with subdivision a of this section. The provisions of subdivision b of this section shall be applicable with respect to any proceedings instituted in accordance with this subdivision.
  3. In any proceeding brought pursuant to subdivision ten of section one of the state enabling act or section 26-413 of this chapter involving an alleged violation of any provision of any such regulation or order, the court shall stay the proceeding:

   (1) During the period within which a petition may be filed in the supreme court pursuant to leave granted under subdivision c of this section with respect to such provision;

   (2) During the pendency of any protest properly filed under section 26-410 of this chapter prior to the institution of the proceeding under subdivision ten of section one of the state enabling act or section 26-413 of this chapter, setting forth objections to the validity of such provision which the court finds to have been made in good faith; and

   (3) During the pendency of any judicial proceeding instituted by the defendant under this section with respect to such protest or instituted by the defendant under subdivision c of this section with respect to such provision, and until the expiration of the time allowed in this section for the taking of further proceedings with respect thereto.

  1. Notwithstanding the provisions of subdivision d of this section, stays shall be granted thereunder in civil proceedings only after judgment and upon application made within five days after judgment. Notwithstanding the provisions of subdivision d of this section, in the case of a proceeding under paragraph (a) of subdivision ten of section one of the state enabling act or subdivision a of section 26-413 of this chapter, the court granting a stay under subdivision d of this section shall issue a temporary injunction or restraining order enjoining or restraining, during the period of the stay, violations by the defendant of any provision of the regulation or order involved in the proceeding. If any provision of a regulation or order is determined to be invalid by judgment of the supreme court which has become effective in accordance with subdivision b of this section, any proceeding pending in any court shall be dismissed, and any judgment in such proceeding vacated, to the extent that such proceeding or judgment is based upon violation of such provision. Except as provided in subdivisions c and d of this section and as heretofore provided in this subdivision e, the pendency of any protest under section 26-410 of this chapter before the city rent agency or judicial proceeding under this section, shall not be grounds for staying any proceeding brought pursuant to subdivision ten of section one of the state enabling act or section 26-413 of this chapter; nor, except as provided in this subdivision e, shall any retroactive effect be given to any judgment setting aside a provision of a regulation or order.
  2. The method prescribed herein for the judicial review of a regulation or order of the city rent agency shall be exclusive.

§ 26-412 Prohibitions.

  1. It shall be unlawful, regardless of any contract, lease or other obligation heretofore or hereafter entered into, for any person to demand or receive any rent for any housing accommodations in excess of the applicable maximum rent established therefor by the city rent agency or otherwise to do or omit to do any act, in violation of any regulation, order or requirement of the city rent agency under the state enabling act or under this chapter, or to offer, solicit, attempt or agree to do any of the foregoing.
  2. It shall be unlawful for any person to remove or attempt to remove from any housing accommodations the tenant or occupant thereof or to refuse to renew the lease or agreement for the use of said accommodations, because such tenant or occupant has taken, or proposes to take, action authorized or required by the state rent act or by this chapter or any provision of this code, the multiple dwelling law, or the health code of the city of New York, or any regulation, order or requirement thereunder.
  3. It shall be unlawful for any officer or employee of the city rent agency or for any official adviser or consultant to the city rent agency to disclose, otherwise than in the course of official duty, any information obtained under this chapter, or to use any such information for personal benefit.
  4. It shall be unlawful for any person, with intent to cause any tenant to vacate housing accommodations or to surrender or waive any rights of such tenant under this chapter or the regulations promulgated thereunder, to engage in any course of conduct including, but not limited to, interruption or discontinuance of essential services which interferes with or disturbs or is intended to interfere with or disturb the comfort, repose, peace or quiet of such tenant in his or her use or occupancy of the housing accommodations.
  5. It shall be unlawful for any person to make any statement or entry false in any material respect in any document or report submitted in any proceeding before the city rent agency or required to be kept filed under this chapter or any regulation, order or requirement thereunder, or to wilfully omit or neglect to make any material statement or entry required to be made in any such document or report;
  6. It shall be unlawful for a landlord or a successor in interest to use housing accommodations or the site on which same were located for any purposes other than that specified in the certificate of eviction.

§ 26-413 Enforcement and penalties.

  1. Any person who wilfully violates any provision of section 26-412 of this chapter shall be guilty of and punishable for a crime as specified in subdivision ten of section one of the state enabling act, namely such persons shall be subject to a fine of not more than five thousand dollars, or to imprisonment for not more than two years in the case of a violation of subdivision c of section 26-412 of this chapter and for not more than one year in all other cases, or to both such fine and imprisonment. The city rent agency may certify such facts, which in its opinion constitute such violation, to the district attorney having jurisdiction thereof.
    1. The city rent agency may, whenever in its judgment any person has engaged in or is about to engage in acts or practices which constitute a violation of any provision of section 26-412 of this chapter, apply to the supreme court for an order (a) enjoining such acts or practices, (b) enforcing compliance with such provision of said section or with an order issued by the city rent agency, or (c) directing the landlord to correct such violation of such provision; and upon sufficient showing, the supreme court may issue a temporary or permanent injunction, restraining order or other order, all of which shall be granted without bond. Jurisdiction shall not be deemed lacking in the supreme court because a defense is based upon an order of an inferior court.

   (2) The city rent agency may, whenever in its judgment any person has engaged in acts or practices which constitute a violation of any provision of section 26-412 of this chapter:

      (a) Impose by administrative order after hearing, a civil penalty for any violation of said section and bring an action to recover same in any court of competent jurisdiction. Such penalty in the case of a violation of subdivision d of such section shall be at minimum in the amount of two thousand but not to exceed three thousand dollars for the first such offense, and at minimum in the amount of ten thousand but not to exceed eleven thousand dollars for each subsequent offense or for a violation consisting of conduct directed at the tenants of more than one housing accommodation; and in the case of any other violation of such section at minimum in the amount of one thousand but not to exceed two thousand dollars for the first such offense, and at minimum in the amount of two thousand but not to exceed three thousand dollars for each subsequent offense. Such order by the city rent agency shall be deemed a final determination for the purposes of judicial review as provided in section 26-411 of this chapter. Such action shall be brought on behalf of the city and any amount recovered shall be paid into the city treasury. Such right of action may be released, compromised or adjusted by the city rent agency at any time subsequent to the issuance of such administrative order.

      (b) Commence an action to recover damages, as provided for in paragraph two of subdivision d of this section in the event that (i) the tenant has not previously commenced such an action as therein provided and (ii) more than six months have elapsed since the occurrence of the violation or issuance of the order. An action instituted by the city rent agency shall constitute a bar to an action by the person aggrieved. The city rent agency shall pay over one-half of the sum recovered in such action to the person aggrieved and one-half to the city treasury, exclusive of costs and disbursements.

   (3) (a) Subject to the provisions of subparagraph (b) of this paragraph, make a finding of harassment whenever it determines the existence of a violation of subdivision d of section 26-412 of this chapter in which event the city rent agency may (i) dismiss any pending application for a certificate of eviction and grant any subsequent application for such certificate only upon such terms and conditions as it deems necessary to prevent the circumvention or evasion of provisions of this chapter; (ii) determine that such housing accommodations or any replacement or subdivision thereof (whether or not by demolition, alteration or substantial rehabilitation) shall constitute housing accommodations subject to control under the provisions of this chapter, notwithstanding any definition of that term to the contrary; and (iii) to refuse to credit any adjustments increasing rent mandated by section 26-405 of this chapter and dismiss any applications for an adjustment pursuant to said section for such time and under such terms and conditions as the city rent agency deems necessary to prevent circumvention or evasion of the provisions of this chapter.

      (b) No proceeding to determine whether housing accommodations have become vacant as a result of harassment may be commenced later than thirty days after the entire structure shall have been vacated, unless the landlord failed to certify his or her intent to alter or demolish the premises as provided by subdivision c of section 26-408 of this chapter. No proceeding shall be maintained for acts performed in good faith and in a reasonable manner for the purposes of operating, maintaining or repairing any building or part thereof. A finding of harassment shall be attached to and noted upon the registration of the housing accommodations affected by such findings, and a copy thereof shall be filed and docketed in the manner of a notice of mechanic’s lien affecting the property. The provisions of this paragraph shall bind all persons or parties who succeed to the landlord’s interest in said housing accommodations.

   (4) Revoke any order or determination based upon any statement or entry false in any material respect in any document or report submitted in any proceeding before the city rent agency or required to be kept or filed under this chapter or any requirements thereunder.

    1. Any court shall advance on the docket or otherwise expedite the disposition of any action or proceeding brought before it pursuant to the provisions of subdivision b of this section.

   (2) The provisions of subdivision b of this section are cumulative. The enforcement of one provision thereof shall not constitute a bar to the enforcement by action, proceeding or by making a finding or determination pursuant to other provisions of said subdivision.

   (3) The city rent agency may direct that a refund payment to the tenant for rent collected in violation of subdivision a of section 26-412 include interest from the date of each excessive payment of rent. Where the city rent agency has revoked an order or determination premised on a false statement or entry, it may withhold issuance of an order granting increase in maximum rent for such housing accommodations until the landlord has complied with the refund directive, if any, provided for in such order of revocation.

    1. Where after the city rent agency has granted a certificate of eviction authorizing the landlord to pursue his or her remedies pursuant to law to acquire possession and a tenant voluntarily removes from a housing accommodation or has been removed therefrom by action or proceeding to evict from or recover possession of a housing accommodation upon the ground that the landlord seeks in good faith to recover possession of such accommodation:

      (a) For his or her immediate and personal use, or for the immediate and personal use by a member or members of his or her immediate family, and such landlord or members of his or her immediate family shall fail to occupy such accommodation within thirty days after the tenant vacates; or

      (b) For the immediate purpose of withdrawing such housing accommodation from the rental market, and such landlord shall lease or sell the housing accommodation or the space previously occupied thereby, or permit use thereof in a manner other than contemplated in such eviction certificate within a period of one year after such removal of the tenant; or

      (c) For the immediate purpose of altering or remodeling such housing accommodation, and the landlord (who required possession for the purpose of effecting such alteration or remodeling) shall fail to start the work of alteration or remodeling of such housing accommodation within ninety days after the removal of the last tenant whose removal is necessary to enable the landlord to effect such alteration or remodeling of such accommodation, or if after having commenced such work shall fail or neglect to prosecute the work with reasonable diligence; or

      (d) For the immediate purpose of demolishing such housing accommodations and constructing a new building in accordance with approved plans, or reasonable amendment thereof, and the landlord has failed to complete the demolition within six months after the removal of the last tenant or, having demolished the premises, has failed or neglected to proceed with the new construction within ninety days after the completion of such demolition, or having commenced such construction work, has failed or neglected to prosecute such work with reasonable diligence; or

      (e) For some purpose other than those specified above for which the removal of the tenant was sought and the landlord has failed to use the vacated premises for such purposes; such landlord shall, unless for good cause shown be liable to the tenant for three times the damages sustained on account of such removal plus reasonable attorney’s fees and costs as determined by the court provided that the tenant commences such action within three years from the expiration of the applicable time period as set forth in this subdivision. The damages sustained by the tenant under this subdivision shall be the difference between the rent paid for the housing accommodation from which such tenant was evicted, and the rental value of a comparable housing accommodation on the open market. In addition to any other damage, the cost of removal of the tenant’s property shall be a lawful measure of damages. The remedy herein provided shall be in addition to those provided for in subdivisions a and b of this section. Such acts and omissions on the part of a landlord after issuance of a certificate of eviction are hereby declared to be consistent with the purposes for which such certificate of eviction was issued.

   (2) A tenant may bring an action against his or her landlord in any court of competent jurisdiction for a violation of subdivision a of section 26-412 of this chapter within: (a) two years from the date of occurrence of an overcharge, defined to mean the amount by which the consideration paid by a tenant to a landlord exceeds the applicable maximum rent, or (b) within one year after the landlord fails to pay a refund as ordered by the city rent agency, such time to be calculated from thirty-three days after the date of the issuance of the order or when the order becomes final, whichever is later, or (c) in the case of an act proscribed by subdivision e of section 26-412 of this chapter, within two years after knowledge of such statement or omission and consequent violation has been made known to the city agency. The landlord shall be liable for reasonable attorney’s fees and costs as determined by the court, plus whichever of the following sums is the greater: (i) such amount not more than three times the amount of the overcharge, or the overcharges, upon which the action is based as the court in its discretion may determine or (ii) an amount not less than twenty-five dollars, provided, however, that such amount shall be the amount of the overcharge or overcharges or twenty-five dollars, whichever is greater, if the defendant proves that the violation of the regulation or order in question was neither wilful nor the result of failure to take practicable precautions against the occurrence of the violation.

   (3) A tenant or occupant who is unlawfully removed by a landlord from any housing accommodation may, within two years from the date of occurrence, bring a civil action against the landlord by reason of such unlawful removal. In such action, the landlord shall be liable to the tenant for three times the damages sustained on account of such removal plus reasonable attorney’s fees and costs as determined by the court. The damages sustained by the tenant under this paragraph shall be the difference between the rent paid for the housing accommodation from which such tenant was evicted and the rental value of a comparable housing accommodation on the open market. In addition to any other damage the cost of removal of the tenant’s property shall be a lawful measure of damage.

  1. No person (including, but not limited to any officer or employee of the city rent agency) shall be held liable for damages or penalties in any court, on any grounds for or in respect of anything done or omitted to be done in good faith pursuant to any provision of the state rent act or of this chapter, or any regulation, order, or requirement thereunder, notwithstanding that subsequently such provision, regulation, order or requirement may be modified, rescinded, or determined to be invalid. In any action or proceeding wherein a party relies for ground of relief or defense or raises issue or brings into question the construction or validity of any provision of this chapter or any regulation, order, or requirement thereunder, the court having jurisdiction of such action or proceeding may at any stage certify such fact to the city rent agency. The city rent agency may intervene in any such action or proceeding.

§ 26-414 Decontrol on basis of vacancy rate.

Whenever the city rent agency shall find, after making such studies and investigations as it deems necessary for such purpose, or for processing an application supported by adequate proof filed by an interested party pursuant to regulation that the percentage of vacancies in all or any particular class of housing accommodations in the city, as such class is determined by the city rent agency, is five per centum or more, the controls imposed on rents and evictions by and pursuant to this chapter, with respect to the housing accommodations as to which such finding has been made, shall be forthwith scheduled for orderly decontrol, with due regard to preventing uncertainty, hardship and dislocation, by order of such agency; provided, however, that notwithstanding any provision of this section to the contrary, such agency shall not order the decontrol of any particular class of housing accommodations as to which it shall find that the percentage of vacancies is less than five per centum; provided, further, that no such order shall be made unless such agency shall hold a public hearing on such proposal at which interested persons are given a reasonable opportunity to be heard. Notice of such hearing shall be provided by publication thereof, on at least five days during the period of fifteen days next preceding the date of the commencement of such hearing, in the City Record and in at least two daily newspapers having general circulation in the city.

§ 26-415 Surveys of need for rent control.

As provided in subdivision three of section one of the local emergency housing rent control act, the mayor shall cause to be made, and shall present to the council a report of the results of, a survey of the supply of housing accommodations within the city, the condition of such accommodations and the need for continuing the regulation and control of residential rents and evictions within the city.

Chapter 4: Rent Stabilization

§ 26-501 Findings and declaration of emergency.

The council hereby finds that a serious public emergency continues to exist in the housing of a considerable number of persons within the city of New York and will continue to exist after April first, nineteen hundred seventy-four; that such emergency necessitated the intervention of federal, state and local government in order to prevent speculative, unwarranted and abnormal increases in rents; that there continues to exist an acute shortage of dwellings which creates a special hardship to persons and families occupying rental housing; that the legislation enacted in nineteen hundred seventy-one by the state of New York, removing controls on housing accommodations as they become vacant, has resulted in sharp increases in rent levels in many instances; that the existing and proposed cuts in federal assistance to housing programs threaten a virtual end to the creation of new housing, thus prolonging the present emergency; that unless residential rents and evictions continue to be regulated and controlled, disruptive practices and abnormal conditions will produce serious threats to the public health, safety and general welfare; that to prevent such perils to health, safety and welfare, preventive action by the council continues to be imperative; that such action is necessary in order to prevent exactions of unjust, unreasonable and oppressive rents and rental agreements and to forestall profiteering, speculation and other disruptive practices tending to produce threats to the public health, safety and general welfare; that the transition from regulation to a normal market of free bargaining between landlord and tenant, while still the objective of state and city policy, must be administered with due regard for such emergency; and that the policy herein expressed is now administered locally within the city of New York by an agency of the city itself, pursuant to the authority conferred by chapter twenty-one of the laws of nineteen hundred sixty-two. The council further finds that, prior to the adoption of local laws sixteen and fifty-one of nineteen hundred sixty-nine, many owners of housing accommodations in multiple dwellings, not subject to the provisions of the city rent and rehabilitation law enacted pursuant to said enabling authority either because they were constructed after nineteen hundred forty-seven or because they were decontrolled due to monthly rental of two hundred fifty dollars or more or for other reasons, were demanding exorbitant and unconscionable rent increases as a result of the aforesaid emergency, which led to a continuing restriction of available housing as evidenced by the nineteen hundred sixty-eight vacancy survey by the United States bureau of the census; that prior to the enactment of said local laws, such increases were being exacted under stress of prevailing conditions of inflation and of an acute housing shortage resulting from a sharp decline in private residential construction brought about by a combination of local and national factors; that such increases and demands were causing severe hardship to tenants of such accommodations and were uprooting long-time city residents from their communities; that recent studies establish that the acute housing shortage continues to exist; that there has been a further decline in private residential construction due to existing and proposed cuts in federal assistance to housing programs; that unless such accommodations are subjected to reasonable rent and eviction limitations, disruptive practices and abnormal conditions will produce serious threats to the public health, safety and general welfare; and that such conditions constitute a grave emergency.

§ 26-502 Additional findings and declaration of emergency.

The council hereby finds that a serious public emergency continues to exist in the housing of a considerable number of persons within the city of New York and will continue to exist on and after April 1, 2018 and hereby reaffirms and repromulgates the findings and declaration set forth in section 26-501 of this title.

§ 26-503 Short title.

This law may be cited as the rent stabilization law of nineteen hundred sixty-nine.

§ 26-504 Application.

This law shall apply to:

  1. Class A multiple dwellings not owned as a cooperative or as a condominium, except as provided in section three hundred fifty-two-eeee of the general business law, containing six or more dwelling units which:

   (1) were completed after February first, nineteen hundred forty-seven, except dwelling units (a) owned or leased by, or financed by loans from, a public agency or public benefit corporation, (b) subject to rent regulation under the private housing finance law or any other state law, (c) aided by government insurance under any provision of the national housing act, to the extent this chapter or any regulation or order issued thereunder is inconsistent therewith, or (d) located in a building for which a certificate of occupancy is obtained after March tenth, nineteen hundred sixty-nine; or (e) any class A multiple dwelling which on June first, nineteen hundred sixty-eight was and still is commonly regarded as a hotel, transient hotel or residential hotel, and which customarily provides hotel service such as maid service, furnishing and laundering of linen, telephone and bell boy service, secretarial or desk service and use and upkeep of furniture and fixtures, or (f) not occupied by the tenant, not including subtenants or occupants, as his or her primary residence, as determined by a court of competent jurisdiction, provided, however that no action or proceeding shall be commenced seeking to recover possession on the ground that a housing accommodation is not occupied by the tenant as his or her primary residence unless the owner or lessor shall have given thirty days notice to the tenant of his or her intention to commence such action or proceeding on such grounds. For the purposes of determining primary residency, a tenant who is a victim of domestic violence, as defined in section four hundred fifty-nine-a of the social services law, who has left the unit because of such violence, and who asserts an intent to return to the housing accommodation shall be deemed to be occupying the unit as his or her primary residence. For the purposes of this subparagraph where a housing accommodation is rented to a not-for-profit hospital for residential use, affiliated subtenants authorized to use such accommodations by such hospital shall be deemed to be tenants, or (g) became vacant on or after June thirtieth, nineteen hundred seventy-one, or become vacant, provided however, that this exemption shall not apply or become effective with respect to housing accommodations which the commissioner determines or finds became vacant because the landlord or any person acting on his or her behalf, with intent to cause the tenant to vacate, engaged in any course of conduct (including but not limited to, interruption or discontinuance of essential services) which interfered with or disturbed or was intended to interfere with or disturb the comfort, repose, peace or quiet of the tenant in his or her use or occupancy of the housing accommodations and provided further that any housing accommodations exempted by this paragraph shall be subject to this law to the extent provided in subdivision b of this section; or

   (2) were decontrolled by the city rent agency pursuant to section 26-414 of this title; or

   (3) are exempt from control by virtue of item one, two, six or seven of subparagraph (i) of paragraph two of subdivision e of section 26-403 of this title; and

  1. Other housing accommodations in class A or class B multiple dwellings made subject to this law pursuant to the emergency tenant protection act of nineteen seventy-four.
  2. Dwelling units in a building or structure receiving the benefits of section 11-243 or section 11-244 of the code or article eighteen of the private housing finance law, not owned as a cooperative or as a condominium, except as provided in section three hundred fifty-two-eeee of the general business law and not subject to chapter three of this title. Upon the expiration or termination for any reason of the benefits of section 11-243 or section 11-244 of the code or article eighteen of the private housing finance law any such dwelling unit shall be subject to this chapter until the occurrence of the first vacancy of such unit after such benefits are no longer being received or if each lease and renewal thereof for such unit for the tenant in residence at the time of the expiration of the tax benefit period has included a notice in at least twelve point type informing such tenant that the unit shall become subject to deregulation upon the expiration of such tax benefit period and states the approximate date on which such tax benefit period is scheduled to expire, such dwelling unit shall be deregulated as of the end of the tax benefit period; provided, however, that if such dwelling unit would have been subject to this chapter or the emergency tenant protection act of nineteen seventy-four in the absence of this subdivision, such dwelling unit shall, upon the expiration of such benefits, continue to be subject to this chapter or the emergency tenant protection act of nineteen seventy-four to the same extent and in the same manner as if this subdivision had never applied thereto.

§ 26-504.1 Exclusion of accommodations of high income renters. [Repealed]

*§ 26-504.2 Exclusion of high rent accommodations. [Repealed]* ::

§ 26-504.3 High income rent decontrol. [Repealed]

*§ 26-505 Application to multiple family complex.* ::

For purposes of this chapter a class A multiple dwelling shall be deemed to include a multiple family garden-type maisonette dwelling complex containing six or more dwelling units having common facilities such as sewer line, water main, and heating plant, and operated as a unit under a single ownership on May sixth, nineteen hundred sixty-nine, notwithstanding that certificates of occupancy were issued for portions thereof as one- or two-family dwellings.

§ 26-506 Application to hotels.

  1. Notwithstanding the provisions of section 26-504 of this chapter to the contrary, and irrespective of any decontrol pursuant to subparagraph (c) of paragraph two of subdivision e of section 26-403 of the city rent and rehabilitation law, this law shall apply to dwelling units in all hotels except hotels erected after July first, nineteen hundred sixty-nine, whether classified as a class A or a class B multiple dwelling, containing six or more dwelling units, provided that the rent charged for the individual dwelling units on May thirty-first, nineteen hundred sixty-eight was not more than three hundred fifty dollars per month or eighty-eight dollars per week; and further provided that, notwithstanding the foregoing, this law shall apply to dwelling units in any hotel, whether classified as a class A or a class B multiple dwelling, eligible for benefits pursuant to the provisions of section 11-244 of the code.
  2. Upon application by a tenant or owner, the division of housing and community renewal, shall determine if such building is a hotel covered by this law, based upon the services provided and other relevant factors. If it is determined that such building is not a hotel, it shall thereafter be subject to this law pursuant to subdivision b of section 26-504 of this chapter.

§ 26-507 Application to certain multiple dwellings purchased from the city.

  1. Notwithstanding the provisions of any local law or regulation promulgated pursuant to the rent stabilization law of nineteen hundred sixty-nine or the emergency tenant protection act of nineteen seventy-four, upon the sale in any manner authorized by law of a multiple dwelling which was previously subject to the provisions of any such laws or acts which was acquired by the city in a tax foreclosure proceeding or pursuant to article nineteen-A of the real property actions and proceedings law, all dwelling units within the multiple dwelling shall be subject to the rent stabilization law of nineteen hundred sixty-nine, as amended, at the last rent charged by the city, or on behalf of the city, for such dwelling unit.
  2. If a unit which was subject to this chapter at the time the city so acquired title is occupied by a tenant who was in occupancy at the time of acquisition and remains in occupancy at the time of sale, such tenant shall be offered a one or two year lease at the rent provided in this section as soon as practical at the sale of the multiple dwelling.
  3. This section shall not apply to redemptions from city ownership pursuant to chapter four of title eleven of the code.

§ 26-509 Application for rent increase excemptions and equivalent tax abatement for rent regulated property occupied by certain senior citizens or persons with disabilities.

  1. Commencement of agency jurisdiction.

   (1) (i)    Notwithstanding any provisions of this chapter to the contrary, the department of finance shall grant rent increase exemption orders or tax abatement certificates to senior citizens pursuant to this section and applications for such orders and certificates and renewal applications shall be made to the department of finance.

      (ii) Notwithstanding any provisions of this chapter to the contrary, such agency as the mayor shall designate (which agency may also be the department of finance) shall grant rent increase exemption orders or tax abatement certificates to persons with disabilities pursuant to this section and applications for such orders and certificates and renewal applications shall be made to such agency.

   (2) The department of finance and such other agency as the mayor shall designate shall have the power, in relation to any application for a rent increase exemption order or tax abatement certificate under such department’s or agency’s jurisdiction, to determine the lawful stabilization rent, but shall not receive applications for adjustment of the initial legal regulated rent pursuant to section 26-513 of this chapter.

   (3) The department of finance and such other agency as the mayor shall designate may promulgate such rules and regulations as may be necessary to effectively carry out the provisions of this section.

  1. Rent increase exemptions for certain senior citizens and persons with disabilities.

   (1) No increase in the legal regulated rent shall be collectible from a tenant to whom there has been issued a currently valid rent exemption order pursuant to this subdivision, except as provided in such order, if such increase is a lawful increase in the monthly legal regulated rent over the rent legally payable on the eligibility date which is provided under a two year lease, or under such other term as regards dwelling units subject to the hotel stabilization provisions of this chapter, for an increase in rent:

      (i) pursuant to an order of the New York city rent guidelines board, or

      (ii) based upon an owner hardship rent increase order issued by the state division of housing and community renewal.

   (2) A tenant is eligible for a rent exemption order pursuant to this section if:

      (i) the head of the household residing in the housing accommodation is sixty-two years of age or older or is a person with a disability, and is entitled to the possession or to the use or occupancy of a dwelling unit. To qualify as a person with a disability for the purposes of this section, an individual shall submit to such agency as the mayor shall designate proof (as specified by regulation of such agency as the mayor shall designate) showing that such individual is currently receiving social security disability insurance (SSDI) or supplemental security income (SSI) benefits under the federal social security act or disability pension or disability compensation benefits provided by the United States department of veterans affairs, or was previously eligible by virtue of receiving disability benefits under the supplemental security income program or the social security disability program and is currently receiving medical assistance benefits based on determination of disability as provided in section three hundred sixty-six of the social services law.

      (ii) the aggregate disposable income (as defined by regulation of the department of finance) of all members of the household residing in the housing accommodation whose head of the household is sixty-two years of age or older does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, twenty-nine thousand dollars beginning July first, two thousand nine, and fifty thousand dollars beginning July first, two thousand fourteen, per year, after deduction of federal, state and city income and social security taxes. For purposes of this subparagraph, “aggregate disposable income” shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of the head of the household receiving benefits under this section whether received by the head of the household or any other member of the household;

      (iii) the aggregate disposable income (as defined by regulation of such agency as the mayor shall designate) for the current income tax year of all members of the household residing in the housing accommodation whose head of the household is a person with a disability does not exceed fifty thousand dollars beginning July first, two thousand fourteen. For purposes of this subparagraph, “aggregate disposable income” shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of the head of the household receiving benefits under this section, whether received by the head of the household or any other member of the household.

      (iv) (a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, (A) the maximum rent for the housing accommodation exceeds one-third of the aggregate disposable income, or (B) subject to the limitations contained within item (d) of subparagraph (i) of paragraph three of this subdivision, if any expected lawful increase in the maximum rent would cause such maximum rent to exceed one-third of the aggregate disposable income, or (C) subject to the limitations contained within item (d) of subparagraph (i) of paragraph three of this subdivision, if such head of household has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen regardless of whether the maximum rent or any expected lawful increase described in this clause exceeds one-third of the aggregate disposable income; or

         (b) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodation exceeds the maximum allowance for shelter which the head of the household is entitled to receive pursuant to the social services law, or subject to the limitations contained within item (d) of subparagraph (i) of paragraph three of this subdivision, if any expected lawful increase in the maximum rent would cause such maximum rent to exceed the maximum allowance for shelter which the head of the household is entitled to receive.

   (3) (i)    A rent exemption order pursuant to this subdivision shall provide:

         (a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of either one-third of the aggregate disposable income, or the rent in effect immediately preceding the eligibility date, whichever is greater; or

         (b) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of either the maximum allowance for shelter which the head of the household is entitled to receive, or the rent in effect immediately preceding the eligibility date, whichever is greater; and

         (c) notwithstanding clause (a) of this subparagraph, in the case of an eligible head of the household who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of the amount specified in such order, except as may be adjusted by any other provision of this chapter; and

         (d) that the landlord may collect from the tenant increases in rent based on an electrical inclusion adjustment or an increase in dwelling space, services or equipment.

      (ii) Each such order shall expire upon termination of occupancy of the housing accommodation by the tenant to whom it is issued. The landlord shall notify the department of finance in the case of a household whose eligibility for such order is based on the fact that the head of such household is sixty-two years of age or older, or such agency as the mayor shall designate in the case of a household whose eligibility for such order is based on the fact that the head of such household is a person with a disability, on a form to be prescribed by such department or agency, within thirty days of each such termination of occupancy.

      (iii) When a rent reduction order is issued by the state division of housing and community renewal, the amount of the reduction shall be subtracted from the rent payable by the tenant specified in a currently valid rent exemption order issued pursuant to this subdivision. The landlord may not collect from the tenant a sum of rent exceeding the adjusted amount while the rent reduction order is in effect.

   (4) Any landlord who collects, or seeks to collect or enforce, rent from a tenant in violation of the terms of a rent exemption order shall, for the purposes of all remedies, sanctions and penalties provided in this chapter, be deemed to have collected or attempted to collect or enforce, a rent in excess of the legal regulated rent.

   (5) A rent exemption order shall be issued to each tenant who applies to the department of finance in the case of a tenant who is sixty-two years of age or older or to such agency as the mayor shall designate in the case of a tenant who is a person with a disability, in accordance with such department’s or agency’s applicable regulations and who is found to be eligible under this subdivision. Such order shall take effect on the first day of the first month after receipt of such application by the department of finance or such agency as the mayor shall designate, except that where there is any other increase in the legal regulated rent within ninety days of the issuance of the order increasing the tenant’s maximum rent which a tenant is not exempted from paying, the rent exemption order shall without further order of the department of finance or such agency as the mayor shall designate take effect as of the effective date of said order increasing the tenant’s rent including any retroactive increments collectible pursuant to such order.

   (6) A rent exemption order shall be valid for the period of the lease or renewal thereof upon application by the tenant; provided, that upon any such renewal application being made by the tenant, any rent exemption order then in effect with respect to such tenant shall be deemed renewed until such time as the department of finance or such agency as the mayor shall designate shall have found such tenant to be either eligible or ineligible for a rent exemption order but in no event for more than six additional months. If such tenant is found eligible, the order shall be deemed to have taken effect upon expiration of the exemption. In the event that any such tenant shall, subsequent to any such automatic renewal, not be granted a rent exemption order, such tenant shall be liable to the owner for the difference between the amounts the tenant has paid under the provisions of the automatically renewed order and the amounts which the tenant would have been required to pay in the absence of such order. Any rent exemption order issued pursuant to this subdivision shall include provisions giving notice as to the contents of this paragraph relating to automatic renewals of rent exemption orders and shall include provisions giving notice that the tenant must enter into either a one or two year renewal lease in order to be eligible for a rent exemption. The notice that each tenant receives from the owner relating to the right to a renewal lease shall contain similar information. Any application or renewal application for a rent exemption order shall also constitute an application for a tax abatement under such section. The department of finance and such other agency as the mayor shall designate may, with respect to renewal applications by the tenants who have been found eligible for rent exemption orders, prescribe a simplified form including a certification of the applicant’s continued eligibility in lieu of a detailed statement of income and other qualifications.

   (7) Notwithstanding any other provisions of law, when a head of a household to whom a then current, valid rent exemption order has been issued under this chapter, chapter three or chapter seven of this title moves his or her principal residence to a subsequent dwelling unit subject to regulation under this chapter, the head of the household may apply to the department of finance or such other agency as the mayor shall designate for a rent exemption order relating to the subsequent dwelling unit, and such order may provide that the head of the household shall be exempt from paying that portion of the legal regulated rent for the subsequent dwelling unit which is the least of the following:

      (i) the amount by which the rent for the subsequent dwelling unit exceeds the last rent, as reduced, which the head of the household was required to actually pay in the original dwelling unit;

      (ii) the last amount deducted from the maximum rent or legal regulated rent meaning the most recent monthly deduction for the applicant in the original dwelling unit pursuant to this section or section 26-605 of this title; or

      (iii) where the head of the household does not receive a monthly allowance for shelter pursuant to the social services law, the amount by which the legal regulated rent of the subsequent dwelling unit exceeds one-third of the combined income of all members of the household except that this subparagraph shall not apply to any eligible head of the household who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen.

Such certificate shall be effective as of the first day of the month in which the tenant applied for such exemption or as of the date the tenant took occupancy of the subsequent dwelling unit, whichever is later provided both occur after the effective date of this section.

   (8) (i) When a dwelling unit subject to regulation under this chapter is later reclassified to a dwelling unit subject to regulation under chapter three of this title, the eligibility of a head of the household to receive a rent increase exemption order upon such reclassification shall be governed by paragraph eight of subdivision m of section 26-405 of this title.

      (ii) When a dwelling unit subject to regulation under this chapter is later reclassified to a dwelling unit subject to the provisions of article II, IV, V or XI of the private housing finance law or subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, the eligibility of a head of the household to receive a rent increase exemption order upon such reclassification shall be governed by section 26-605.1 of this title.

   (9) Notwithstanding any other provision of law to the contrary, where a head of household holds a current, valid rent exemption order and, after the effective date of this paragraph, there is a permanent decrease in aggregate disposable income in an amount which exceeds twenty percent of such aggregate disposable income as represented in such head of the household’s last approved application for a rent exemption order or for renewal thereof, such head of the household may apply for a redetermination of the amount set forth therein. Upon application, such amount shall be redetermined so as to reestablish the ratio of adjusted rent to aggregate disposable income which existed at the time of approval of such head of the household’s last application for a rent exemption order or for renewal thereof; provided, however, that in no event shall the amount of adjusted rent be redetermined to be (i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, less than one-third of the aggregate disposable income unless such head of the household has been granted a rent exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen; or (ii) in the case of a head of the household who receives a monthly allowance for shelter pursuant to such law, less than the maximum allowance for shelter which such head of the household is entitled to receive pursuant to the social services law. For purposes of this paragraph, a decrease in aggregate disposable income shall not include any decrease in such income resulting from the manner in which such income is calculated pursuant to any amendment to paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law, any amendment to the regulations of the department of finance made on or after the effective date of the local law that added this clause, or any amendment to the regulations of such other agency as the mayor shall designate made on or after October tenth, two thousand five. For purposes of this paragraph, “adjusted rent” shall mean legal regulated rent less the amount set forth in a rent exemption order.

  1. Tax abatement for properties subject to rent exemption order.

   (1) Tax abatement, pursuant to the provisions of section four hundred sixty-seven-b of the real property tax law, shall be granted with respect to any real property for which a rent exemption order is issued under subdivision b of this section to the tenant of any housing accommodation contained therein. The rent exemption order shall also constitute the tax abatement certificate.

   (2) The real estate tax imposed upon any real property for which a rent exemption is issued, shall be reduced and abated by an amount equal to the difference between:

      (i) the sum of the maximum rents collectible under such orders, and

      (ii) the sum of rents that would be collectible from the tenants of such housing accommodations if no exemption had been granted pursuant to subdivision b of this section.

   (3) For any individual housing accommodation, the tax abatement computed pursuant to this subdivision shall be available with respect to a period commencing on the effective date of the initial rent exemption order, and ending on the expiration date of such order or on the effective date of an order terminating the rent exemption.

   (4) Prior to the commencement of each fiscal year, the department of finance shall determine the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders granted to persons sixty-two years of age or older were in effect for all or any part of the preceding calendar year. Prior to the commencement of each fiscal year, such agency as the mayor shall designate shall determine and, if such agency is not the department of finance, shall notify the department of finance of the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders granted to persons with disabilities were in effect for all or any part of the preceding calendar year. The commissioner of finance shall make the appropriate adjustment in the real estate tax payable in such fiscal year.

   (5) Tax abatement pursuant to this section shall be in addition to any other tax abatement authorized by law, but shall not reduce the tax for any fiscal year below zero. In the event that the tax abatement certificate authorizes an amount of deduction in excess of the real estate installment, then the balance may be applied to any subsequent installment until exhausted. In such a case the owner shall submit with his or her real estate tax bill and remittance, a verified statement in such form as prescribed by the commissioner of finance setting forth the carry over amount and the amounts previously applied; provided, however, that at the request of the owner such balance shall be paid to the owner by the commissioner of finance in lieu of being applied to any subsequent installment, except where the owner is in arrears in the payment of real estate taxes on any property. For the purposes of this paragraph, where the owner is a corporation, it shall be deemed to be in arrears when any of the officers, directors or any person holding an interest in more than ten percent of the issued and outstanding stock of such corporation is in arrears in the payment of real estate taxes on any property; where title is held by a nominee, the owner shall be deemed to be in arrears when the person for whose benefit such title is held is in arrears in the payment of real estate taxes on any property.

  1. Notwithstanding the provisions of this chapter, a tenant who resides in a dwelling unit which becomes subject to this chapter upon the sale by the city of New York of the building in which such dwelling unit is situated may be issued a rent increase exemption order for increases in rent which occurred during ownership of such building by the city of New York provided that such tenant would have been otherwise eligible to receive a rent increase exemption order at the time of such increase but for the fact that such tenant occupied a dwelling unit owned by the city of New York and was therefore not subject to this chapter. Application for such rent increase exemption orders shall be made within one year from the date such building is sold by the city of New York or within one year of the effective date of this provision, whichever is later.

§ 26-510 Rent guidelines board.

  1. There shall be a rent guidelines board to consist of nine members, appointed by the mayor. Two members shall be representative of tenants, two shall be representative of owners of property, and five shall be public members each of whom shall have had at least five years experience in either finance, economics or housing. One public member shall be designated by the mayor to serve as chairman and shall hold no other public office. No member, officer or employee of any municipal rent regulation agency or the state division of housing and community renewal and no person who owns or manages real estate covered by this law or who is an officer of any owner or tenant organization shall serve on a rent guidelines board. One public member, one member representative of tenants and one member representative of owners shall serve for a term ending two years from January first next succeeding the date of their appointment; one public member, one member representative of tenants and one member representative of owners shall serve for terms ending three years from the January first next succeeding the date of their appointment and two public members shall serve for terms ending four years from January first next succeeding the dates of their appointment. The chairman shall serve at the pleasure of the mayor. Thereafter, all members shall continue in office until their successors have been appointed and qualified. The mayor shall fill any vacancy which may occur by reason of death, resignation or otherwise in a manner consistent with the original appointment. A member may be removed by the mayor for cause, but not without an opportunity to be heard in person or by counsel, in his or her defense, upon not less than ten days notice.
  2. The rent guidelines board shall establish annual guidelines for rent adjustments, and in determining whether rents for housing accommodations subject to the emergency tenant protection act of nineteen seventy-four or this law shall be adjusted shall consider, among other things (1) the economic condition of the residential real estate industry in the affected area including such factors as the prevailing and projected (i) real estate taxes and sewer and water rates, (ii) gross operating maintenance costs (including insurance rates, governmental fees, cost of fuel and labor costs), (iii) costs and availability of financing (including effective rates of interest), (iv) over-all supply of housing accommodations and over-all vacancy rates, (2) relevant data from the current and projected cost of living indices for the affected area, (3) such other data as may be made available to it. Not later than July first of each year, the rent guidelines board shall file with the city clerk its findings for the preceding calendar year, and shall accompany such findings with a statement of the maximum rate or rates of rent adjustment, if any, for one or more classes of accommodations subject to this law, authorized for leases or other rental agreements commencing on the next succeeding October first or within the twelve months thereafter. Such findings and statement shall be published in the City Record. The rent guidelines board shall not establish annual guidelines for rent adjustments based on the current rental cost of a unit or on the amount of time that has elapsed since another rent increase was authorized pursuant to this title.
  3. Such members shall be compensated on a per diem basis of one hundred dollars per day for no more than twenty-five days a year except that the chairman shall be compensated at one hundred twenty-five dollars a day for no more than fifty days a year. The chairman shall be chief administrative officer of the rent guidelines board and among his or her powers and duties he or she shall have the authority to employ, assign and supervise the employees of the rent guidelines board and enter into contracts for consultant services. The department of housing preservation and development shall cooperate with the rent guidelines board and may assign personnel and perform such services in connection with the duties of the rent guidelines board as may reasonably be required by the chairman.
  4. Any housing accommodation covered by this law owned by a member in good standing of an association registered with the department of housing preservation and development pursuant to section 26-511 of this chapter which becomes vacant for any reason, other than harassment of the prior tenant, may be offered for rental at any price notwithstanding any guideline level established by the guidelines board for renewal leases, provided the offering price does not exceed the rental then authorized by the guidelines board for such dwelling unit plus five percent for a new lease not exceeding two years and a further five percent for a new lease having a minimum term of three years, until July first, nineteen hundred seventy, at which time the guidelines board shall determine what the rental for a vacancy shall be.
  5. With respect to hotel dwelling units, covered by this law pursuant to section 26-506 of this chapter, the council, after receipt of a study from the rent guidelines board, shall establish a guideline for rent increases, irrespective of the limitations on amount of increase in subdivision d hereof, which guideline shall apply only to permanent tenants. A permanent tenant is an individual or family who at any time since May thirty-first, nineteen hundred sixty-eight, or hereafter, has continuously resided in the same hotel as a principal residence for a period of at least six months. On January first, nineteen hundred seventy-one and once annually each succeeding year the rent guidelines board shall cause a review to be made of the levels of fair rent increases provided under this subdivision and may establish different levels of fair rent increases for hotel dwelling units renting within different rental ranges based upon the board’s consideration of conditions in the market for hotel accommodations and the economics of hotel real estate. Any hotel dwelling unit which is voluntarily vacated by the tenant thereof may be offered for rental at the guideline level for vacancies established by the rent guidelines board. If a hotel dwelling unit becomes vacant because the prior tenant was evicted therefrom, there shall be no increase in the rental thereof except for such increases in rental that the prior tenant would have had to pay had he or she continued in occupancy.
  1. From September twenty-fifth, nineteen hundred sixty-nine until the rate of permissible increase is established by the council pursuant to subdivision e of this section, there shall not be collected from any permanent hotel tenant any rent increase in excess of ten percent over the rent payable for his or her dwelling unit on May thirty-first, nineteen hundred sixty-eight, except for hardship increases authorized by the conciliation and appeals board. Any owner who collects or permits any rent to be collected in excess of the amount authorized by this subdivision shall not be eligible to be a member in good standing of a hotel industry stabilization association.
  2. The rent guidelines board prior to the annual adjustment of the level of fair rents provided for under subdivision b of this section for dwelling units and hotel dwelling units covered by this law, shall hold a public hearing or hearings for the purpose of collecting information relating to all factors set forth in subdivision b of this section. Notice of the date, time, location and summary of subject matter for the public hearing or hearings shall be published in the City Record daily for a period of not less than eight days and at least once in one or more newspapers of general circulation at least eight days immediately preceding each hearing date, at the expense of the city of New York, and the hearing shall be open for testimony from any individual, group, association or representative thereof who wants to testify.
  3. Maximum rates of rent adjustment shall not be established more than once annually for any housing accommodation within the board’s jurisdiction. Once established, no such rate shall, within the one-year period, be adjusted by any surcharge, supplementary adjustment or other modification.
  4. Notwithstanding any other provision of this law, the adjustment for vacancy leases covered by the provisions of this law shall be determined exclusively pursuant to this section. The rent guidelines board shall no longer promulgate adjustments for vacancy leases unless otherwise authorized by this chapter.

§ 26-511 Real estate industry stabilization association.

  1. The real estate industry stabilization association registered with the department of housing preservation and development is hereby divested of all its powers and authority under this law.
  2. The stabilization code heretofore promulgated by such association, as approved by the department of housing preservation and development, is hereby continued to the extent that it is not inconsistent with law. Such code may be amended from time to time, provided, however, that no such amendments shall be promulgated except by action of the commissioner of the division of housing and community renewal and provided further, that prior to the adoption of any such amendments, the commissioner shall (i) submit the proposed amendments to the commissioner of the department of housing preservation and development and allow such commissioner thirty days to make comments or recommendations on the proposed amendments, (ii) review the comments or recommendations, if any, made pursuant to clause (i) of this subdivision and make any revisions to the proposed amendments which the commissioner of the division of housing and community renewal deems appropriate provided that any such review and revision shall be completed within thirty days of receipt of such comments or recommendations and (iii) thereafter hold a public hearing on the proposed amendments. No provision of such code shall impair or diminish any right or remedy granted to any party by this law or any other provision of law.
  3. A code shall not be adopted hereunder unless it appears to the division of housing and community renewal that such code:

   (1) provides safeguards against unreasonably high rent increases and, in general, protects tenants and the public interest, and does not impose any industry wide schedule of rents or minimum rentals;

   (2) requires owners not to exceed the level of lawful rents as provided by this law;

   (3) provides for a cash refund or a credit, to be applied against future rent, in the amount of any rent overcharge collected by an owner and any penalties, costs, attorneys’ fees and interest from the date of the overcharge at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules for which the owner is assessed;

   (4) includes provisions requiring owners to grant a one or two year vacancy or renewal lease at the option of the tenant except where a mortgage or mortgage commitment existing as of April first, nineteen hundred sixty-nine, provides that the mortgagor shall not grant a one year lease;

   (5) includes guidelines with respect to such additional rent and related matters as, for example, security deposits, advance rental payments, the use of escalator clauses in leases and provision for increase in rentals for garages and other ancillary facilities, so as to insure that the level of fair rent increase established under this law will not be subverted and made ineffective, provided further that notwithstanding any inconsistent provision of law, rule, regulation, contract, agreement, lease or other obligation, no owner, in addition to the authorized collection of rent, shall demand, receive or retain a security deposit or advance payment which exceeds the rent of one month for or in connection with the use or occupancy of a housing accommodation by (a) any tenant who is sixty-five years of age or older or (b) any tenant who is receiving disability retirement benefit or supplemental security income pursuant to the federal social security act for any lease or lease renewal entered into after July 1, 2002;

   (5-a) [repealed;]

   (6) provides criteria whereby the commissioner may act upon applications by owners for increases in excess of the level of fair rent increase established under this law provided, however, that such criteria shall provide (a) as to hardship applications, for a finding that the level of fair rent increase is not sufficient to enable the owner to maintain approximately the same average annual net income (which shall be computed without regard to debt service, financing costs or management fees) for the three year period ending on or within six months of the date of an application pursuant to such criteria as compared with annual net income, which prevailed on the average over the period nineteen hundred sixty-eight through nineteen hundred seventy, or for the first three years of operation if the building was completed since nineteen hundred sixty-eight or for the first three fiscal years after a transfer of title to a new owner provided the new owner can establish to the satisfaction of the commissioner that he or she acquired title to the building as a result of a bona fide sale of the entire building and that the new owner is unable to obtain requisite records for the fiscal years nineteen hundred sixty-eight through nineteen hundred seventy despite diligent efforts to obtain same from predecessors in title and further provided that the new owner can provide financial data covering a minimum of six years under his or her continuous and uninterrupted operation of the building to meet the three year to three year comparative test periods herein provided; and (b) as to completed building-wide major capital improvements, for a finding that such improvements are deemed depreciable under the Internal Revenue Code and that the cost is to be amortized over a twelve-year period for a building with thirty-five or fewer housing accommodations, or a twelve and one-half-year period for a building with more than thirty-five housing accommodations, for any determination issued by the division of housing and community renewal after the effective date of the the chapter of the laws of two thousand nineteen that amended this paragraph and shall be removed from the legal regulated rent thirty years from the date the increase became effective inclusive of any increases granted by the applicable rent guidelines board. Temporary major capital improvement increases shall be collectible prospectively on the first day of the first month beginning sixty days from the date of mailing notice of approval to the tenant. Such notice shall disclose the total monthly increase in rent and the first month in which the tenant would be required to pay the temporary increase. An approval for a temporary major capital improvement increase shall not include retroactive payments. The collection of any increase shall not exceed two percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the rent as established or set in future years. Upon vacancy, the landlord may add any remaining balance of the temporary major capital improvement increase to the legal regulated rent. Notwithstanding any other provision of the law, for any renewal lease commencing on or after June 14, 2019, the collection of any rent increases due to any major capital improvements approved on or after June 16, 2012 and before June 16, 2019 shall not exceed two percent in any year for any tenant in occupancy on the date the major capital improvement was approved or based upon cash purchase price exclusive of interest or service charges. Where an application for a temporary major capital improvement increase has been filed, a tenant shall have sixty days from the date of mailing of a notice of a proceeding in which to answer or reply. The state division of housing and community renewal shall provide any responding tenant with the reasons for the division’s approval or denial of such application. Notwithstanding anything to the contrary contained herein, no hardship increase granted pursuant to this paragraph shall, when added to the annual gross rents, as determined by the commissioner, exceed the sum of, (i) the annual operating expenses, (ii) an allowance for management services as determined by the commissioner, (iii) actual annual mortgage debt service (interest and amortization) on its indebtedness to a lending institution, an insurance company, a retirement fund or welfare fund which is operated under the supervision of the banking or insurance laws of the state of New York or the United States, and (iv) eight and one-half percent of that portion of the fair market value of the property which exceeds the unpaid principal amount of the mortgage indebtedness referred to in subparagraph (iii) of this paragraph. Fair market value for the purposes of this paragraph shall be six times the annual gross rent. The collection of any increase in the stabilized rent for any apartment pursuant to this paragraph shall not exceed six percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the stabilized rent as established or set in future years;

   (6-a) provides criteria whereby as an alternative to the hardship application provided under paragraph six of this subdivision owners of buildings acquired by the same owner or a related entity owned by the same principals three years prior to the date of application may apply to the division for increases in excess of the level of applicable guideline increases established under this law based on a finding by the commissioner that such guideline increases are not sufficient to enable the owner to maintain an annual gross rent income for such building which exceeds the annual operating expenses of such building by a sum equal to at least five percent of such gross rent. For the purposes of this paragraph, operating expenses shall consist of the actual, reasonable, costs of fuel, labor, utilities, taxes, other than income or corporate franchise taxes, fees, permits, necessary contracted services and noncapital repairs, insurance, parts and supplies, management fees and other administrative costs and mortgage interest. For the purposes of this paragraph, mortgage interest shall be deemed to mean interest on a bona fide mortgage including an allocable portion of charges related thereto. Criteria to be considered in determining a bona fide mortgage other than an institutional mortgage shall include; condition of the property, location of the property, the existing mortgage market at the time the mortgage is placed, the term of the mortgage, the amortization rate, the principal amount of the mortgage, security and other terms and conditions of the mortgage. The commissioner shall set a rental value for any unit occupied by the owner or a person related to the owner or unoccupied at the owner’s choice for more than one month at the last regulated rent plus the minimum number of guidelines increases or, if no such regulated rent existed or is known, the commissioner shall impute a rent consistent with other rents in the building. The amount of hardship increase shall be such as may be required to maintain the annual gross rent income as provided by this paragraph. The division shall not grant a hardship application under this paragraph or paragraph six of this subdivision for a period of three years subsequent to granting a hardship application under the provisions of this paragraph. The collection of any increase in the rent for any housing accommodation pursuant to this paragraph shall not exceed six percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the rent as established or set in future years. No application shall be approved unless the owner’s equity in such building exceeds five percent of: (i) the arms length purchase price of the property; (ii) the cost of any capital improvements for which the owner has not collected a surcharge; (iii) any repayment of principal of any mortgage or loan used to finance the purchase of the property or any capital improvements for which the owner has not collected a surcharge and (iv) any increase in the equalized assessed value of the property which occurred subsequent to the first valuation of the property after purchase by the owner. For the purposes of this paragraph, owner’s equity shall mean the sum of (i) the purchase price of the property less the principal of any mortgage or loan used to finance the purchase of the property, (ii) the cost of any capital improvement for which the owner has not collected a surcharge less the principal of any mortgage or loan used to finance said improvement, (iii) any repayment of the principal of any mortgage or loan used to finance the purchase of the property or any capital improvement for which the owner has not collected a surcharge, and (iv) any increase in the equalized assessed value of the property which occurred subsequent to the first valuation of the property after purchase by the owner;

   (7) establishes a fair and consistent formula for allocation of rental adjustment to be made upon granting of an increase by the commissioner;

   (8) requires owners to maintain all services furnished by them on May thirty-first, nineteen hundred sixty-eight, or as otherwise provided by law, in connection with the leasing of the dwelling units covered by this law;

   (9) provides that an owner shall not refuse to renew a lease except:

      (a) where he or she intends in good faith to demolish the building and has obtained a permit therefor from the department of buildings; or

      (b) where he or she seeks to recover possession of one dwelling unit because of immediate and compelling necessity for his or her own personal use and occupancy as his or her primary residence or for the use and occupancy of a member of his or her immediate family as his or her primary residence, provided however, that this subparagraph shall permit recovery of only one dwelling unit and shall not apply where a tenant or the spouse of a tenant lawfully occupying the dwelling unit is sixty-two years of age or older, has been a tenant in a dwelling unit in that building for fifteen years or more, or has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques, and which are expected to be permanent and which prevent the tenant from engaging in any substantial gainful employment, unless such owner offers to provide and if requested, provides an equivalent or superior housing accommodation at the same or lower stabilized rent in a closely proximate area. The provisions of this subparagraph shall only permit one of the individual owners of any building to recover possession of one dwelling unit for his or her own personal use and/or for that of his or her immediate family. A dwelling unit recovered by an owner pursuant to this subparagraph shall not for a period of three years be rented, leased, subleased or assigned to any person other than a person for whose benefit recovery of the dwelling unit is permitted pursuant to this subparagraph or to the tenant in occupancy at the time of recovery under the same terms as the original lease; provided, however, that a tenant required to surrender a dwelling unit under this subparagraph shall have a cause of action in any court of competent jurisdiction for damages, declaratory, and injunctive relief against a landlord or purchaser of the premises who makes a fraudulent statement regarding a proposed use of the housing accommodation. In any action or proceeding brought pursuant to this subparagraph a prevailing tenant shall be entitled to recovery of actual damages, and reasonable attorneys’ fees. This subparagraph shall not be deemed to establish or eliminate any claim that the former tenant of the dwelling unit may otherwise have against the owner. Any such rental, lease, sublease or assignment during such period to any other person may be subject to a penalty of a forfeiture of the right to any increases in residential rents in such building for a period of three years; or

      (c) where the housing accommodation is owned by a hospital, convent, monastery, asylum, public institution, college, school dormitory or any institution operated exclusively for charitable or educational purposes on a non-profit basis and either:

         (i) the tenant’s initial tenancy commenced after the owner acquired the property and the owner requires the unit in connection with its charitable or educational purposes including, but not limited to, housing for affiliated persons; provided that with respect to any tenant whose right to occupancy commenced prior to July first, nineteen hundred seventy-eight pursuant to a written lease or written rental agreement and who did not receive notice at the time of the execution of the lease that his or her tenancy was subject to non-renewal, the institution shall not have the right to refuse to renew pursuant to this subparagraph; provided further that a tenant who was affiliated with the institution at the commencement of his or her tenancy and whose affiliation terminates during such tenancy shall not have the right to a renewal lease; or

         (ii) the owner requires the unit for a non-residential use in connection with its charitable or educational purposes; or

      (d) on specified grounds set forth in the code consistent with the purposes of this law; or

      (e) where a tenant violates the provisions of paragraph twelve of this sub- division.

   (9-a) provides that where an owner has submitted to and the attorney general has accepted for filing an offering plan to convert the building to cooperative or condominium ownership and the owner has presented the offering plan to the tenants in occupancy, any renewal or vacancy lease may contain a provision that if a building is converted to cooperative or condominium ownership pursuant to an eviction plan, as provided in section three hundred fifty-two-eeee of the general business law, the lease may only be cancelled upon the expiration of three years after the plan has been declared effective, and upon ninety days notice to the tenant that such period has expired or will be expiring.

   (10) specifically provides that if an owner fails to comply with any order of the commissioner or is found by the commissioner to have harassed a tenant to obtain vacancy of his or her housing accommodation, he or she shall, in addition to being subject to any other penalties or remedies permitted by law, be barred thereafter from applying for or collecting any further rent increase. The compliance by the owner with the order of the commissioner or the restoration of the tenant subject to harassment to the housing accommodation or compliance with such other remedy as shall be determined by the commissioner to be appropriate shall result in the prospective elimination of such sanctions;

   (11) includes provisions which may be peculiarly applicable to hotels including specifically that no owner shall refuse to extend or renew a tenancy for the purpose of preventing a hotel tenant from becoming a permanent tenant; and

   (12) permits subletting of units subject to this law pursuant to section two hundred twenty-six-b of the real property law provided that (a) the rental charged to the subtenant does not exceed the stabilized rent plus a ten percent surcharge payable to the tenant if the unit sublet was furnished with the tenant’s furniture; (b) the tenant can establish that at all times he or she has maintained the unit as his or her primary residence and intends to occupy it as such at the expiration of the sublease; (c) an owner may terminate the tenancy of a tenant who sublets or assigns contrary to the terms of this paragraph but no action or proceeding based on the non-primary residence of a tenant may be commenced prior to the expiration date of his or her lease; (d) where an apartment is sublet the prime tenant shall retain the right to a renewal lease and the rights and status of a tenant in occupancy as they relate to conversion to condominium or cooperative ownership; (e) where a tenant violates the provisions of subparagraph (a) of this paragraph the subtenant shall be entitled to damages of three times the overcharge and may also be awarded attorneys fees and interest from the date of the overcharge at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules; (f) the tenant may not sublet the unit for more than a total of two years, including the term of the proposed sublease, out of the four-year period preceding the termination date of the proposed sublease. The provisions of this subparagraph shall only apply to subleases commencing on and after July first, nineteen hundred eighty-three; (g) for the purposes of this paragraph only, the term of the proposed sublease may extend beyond the term of the tenant’s lease. In such event, such sublease shall be subject to the tenant’s right to a renewal lease. The subtenant shall have no right to a renewal lease. It shall be unreasonable for an owner to refuse to consent to a sublease solely because such sublease extends beyond the tenant’s lease; and (h) notwithstanding the provisions of section two hundred twenty-six-b of the real property law, a not-for-profit hospital shall have the right to sublet any housing accommodation leased by it to its affiliated personnel without requiring the landlord’s consent to any such sublease and without being bound by the provisions of subparagraphs (b), (c) and (f) of this paragraph. Commencing with the effective date of this subparagraph, whenever a not-for-profit hospital executes a renewal lease for a housing accommodation, the legal regulated rent shall be increased by a sum equal to fifteen percent of the previous lease rental for such housing accommodation, hereinafter referred to as a vacancy surcharge, unless the landlord shall have received within the seven year period prior to the commencement date of such renewal lease any vacancy increases or vacancy surcharges allocable to the said housing accommodation. In the event the landlord shall have received any such vacancy increases or vacancy surcharges during such seven year period, the vacancy surcharge shall be reduced by the amount received by any such vacancy increase or vacancy surcharges.

   (13) provides that an owner is entitled to a rent increase where there has been a substantial modification or increase of dwelling space, or installation of new equipment or improvements or new furniture or furnishings provided in or to a tenant’s housing accommodation, on written informed tenant consent to the rent increase. In the case of a vacant housing accommodation, tenant consent shall not be required. The temporary increase in the legal regulated rent for the affected housing accommodation shall be one-one hundred sixty-eighth, in the case of a building with thirty-five or fewer housing accommodations or one-one hundred eightieth in the case of a building with more than thirty-five housing accommodations where such increase takes effect on or after the effective date of the chapter of the laws of two thousand nineteen that amended this paragraph, of the total actual cost incurred by the landlord in providing such reasonable and verifiable modification or increase in dwelling space, furniture, furnishings, or equipment, including the cost of installation but excluding finance charges and any costs that exceed reasonable costs established by rules and regulations promulgated by the division of housing and community renewal. Such rules and regulations shall include: (i) requirements for work to be done by licensed contractors and prohibit common ownership between the landlord and the contractor or vendor; and (ii) a requirement that the owner resolve within the dwelling space all outstanding hazardous or immediately hazardous violations of the Uniform Fire Prevention and Building Code (Uniform Code), New York City Fire Code, or New York City Building and Housing Maintenance Codes, if applicable. Provided further that an owner who is entitled to a rent increase pursuant to this paragraph shall not be entitled to a further rent increase based upon the installation of similar equipment, or new furniture or furnishings within the useful life of such new equipment, or new furniture or furnishings. Provided further that the recoverable costs incurred by the landlord, pursuant to this paragraph, shall be limited to an aggregate cost of fifteen thousand dollars that may be expended on no more than three separate individual apartment improvements in a fifteen year period beginning with the first individual apartment improvement on or after June fourteenth, two thousand nineteen. Provided further that increases to the legal regulated rent pursuant to this paragraph shall be removed from the legal regulated rent thirty years from the date the increase became effective inclusive of any increases granted by the applicable rent guidelines board.

   (14) where the amount of rent charged to and paid by the tenant is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation which may be charged upon vacancy thereof, may, at the option of the owner, be based upon such previously established legal regulated rent, as adjusted by the most recent applicable guidelines increases and any other increases authorized by law. For any tenant who is subject to a lease on or after the effective date of a chapter of the laws of two thousand nineteen which amended this paragraph, or is or was entitled to receive a renewal or vacancy lease on or after such date, upon renewal of such lease, the amount of rent for such housing accommodation that may be charged and paid shall be no more than the rent charged to and paid by the tenant prior to that renewal, as adjusted by the most recent applicable guidelines increases and any other increases authorized by law. Provided, however, that for buildings that are subject to this statute by virtue of a regulatory agreement with a local government agency and which buildings receive federal project based rental assistance administered by the United States department of housing and urban development or a state or local section eight administering agency, where the rent set by the federal, state or local governmental agency is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation which may be charged with the approval of such federal, state or local governmental agency upon renewal or upon vacancy thereof, may be based upon such previously established legal regulated rent, as adjusted by the most recent applicable guidelines increases and other increases authorized by law; and further provided that such vacancy shall not be caused by the failure of the owner or an agent of the owner, to maintain the housing accommodation in compliance with the warranty of habitability set forth in subdivision one of section two hundred thirty-five-b of the real property law.

    1. Each owner subject to the rent stabilization law shall furnish to each tenant signing a new or renewal lease, a rider describing the rights and duties of owners and tenants as provided for under the rent stabilization law of nineteen hundred sixty-nine. Such publication shall conform to the intent of section 5-702 of the general obligations law and shall be attached as an addendum to the lease. Upon the face of each lease, in bold print, shall appear the following: “Attached to this lease are the pertinent rules and regulations governing tenants and landlords’ rights under the rent stabilization law of nineteen hundred sixty-nine”.

   (2) The rider shall be in a form promulgated by the commissioner in larger type than the lease and shall be utilized as provided in paragraph one of this subdivision.

  1. Each owner of premises subject to the rent stabilization law shall furnish to each tenant signing a new or renewal lease, a copy of the fully executed new or renewal lease bearing the signatures of owner and tenant and the beginning and ending dates of the lease term, within thirty days from the owner’s receipt of the new or renewal lease signed by the tenant.

§ 26-511.1 Major capital improvements and individual apartment improvements in rent regulated units.

  1. Notwithstanding any other provision of law to the contrary, the division of housing and community renewal, the “division”, shall promulgate rules and regulations applicable to all rent regulated units that shall:

   (1) establish a schedule of reasonable costs for major capital improvements, which shall set a ceiling for what can be recovered through a temporary major capital improvement increase, based on the type of improvement and its rate of depreciation;

   (2) establish the criteria for eligibility of a temporary major capital improvement increase including the type of improvement, which shall be essential for the preservation, energy efficiency, functionality or infrastructure of the entire building, including heating, windows, plumbing and roofing, but shall not be for operational costs or unnecessary cosmetic improvements. Allowable improvements must additionally be depreciable pursuant to the Internal Revenue Service, other than for ordinary repairs, that directly or indirectly benefit all tenants; and no increase shall be approved for group work done in individual apartments that is otherwise not an improvement to an entire building. Only such costs that are actual, reasonable, and verifiable may be approved as a temporary major capital improvement increase;

   (3) require that any temporary major capital improvement increase granted pursuant to these provisions be reduced by an amount equal to (i) any governmental grant received by the landlord, where such grant compensates the landlord for any improvements required by a city, state or federal government, an agency or any granting governmental entity to be expended for improvements and (ii) any insurance payment received by the landlord where such insurance payment compensates the landlord for any part of the costs of the improvements;

   (4) prohibit temporary major capital improvement increases for buildings with outstanding hazardous or immediately hazardous violations of the Uniform Fire Prevention and Building Code (Uniform Code), New York City Fire Code, or New York City Building and Housing Maintenance Codes, if applicable;

   (5) prohibit individual apartment improvement increases for housing accommodations with outstanding hazardous or immediately hazardous violations of the Uniform Fire Prevention and Building Code (Uniform Code), New York City Fire Code, or New York City Building and Housing Maintenance Codes, if applicable;

   (6) prohibit temporary major capital improvement increases for buildings with thirty-five per centum or fewer rent-regulated units;

   (7) establish that temporary major capital improvement increases shall be fixed to the unit and shall cease thirty years from the date the increase became effective. Temporary major capital improvement increases shall be added to the legal regulated rent as a temporary increase and shall be removed from the legal regulated rent thirty years from the date the increase became effective inclusive of any increases granted by the local rent guidelines board;

   (8) establish that temporary major capital improvement increases shall be collectible prospectively on the first day of the first month beginning sixty days from the date of mailing notice of approval to the tenant. Such notice shall disclose the total monthly increase in rent and the first month in which the tenant would be required to pay the temporary increase. An approval for a temporary major capital improvement increase shall not include retroactive payments. The collection of any increase shall not exceed two percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the rent as established or set in future years. Upon vacancy, the landlord may add any remaining balance of the temporary major capital improvement increase to the legal regulated rent. Notwithstanding any other provision of the law, for any renewal lease commencing on or after June 14, 2019, the collection of any rent increases due to any major capital improvements approved on or after June 16, 2012 and before June 16, 2019 shall not exceed two percent in any year for any tenant in occupancy on the date the major capital improvement was approved;

   (9) ensure that the application procedure for temporary major capital improvement increases shall include an itemized list of work performed and a description or explanation of the reason or purpose of such work;

   (10) provide, that where an application for a major capital improvement rent increase has been filed, a tenant shall have sixty days from the date of mailing of a notice of a proceeding in which to answer or reply;

   (11) establish a notification and documentation procedure for individual apartment improvements that requires an itemized list of work performed and a description or explanation of the reason or purpose of such work, inclusive of photographic evidence documenting the condition prior to and after the completion of the performed work. Provide for the centralized electronic retention of such documentation and any other supporting documentation to be made available in cases pertaining to the adjustment of legal regulated rents; and

   (12) establish a form in the top six languages other than English spoken in the state according to the latest available data from the U.S. Bureau of Census for a temporary individual apartment improvement rent increase for a tenant in occupancy which shall be used by landlords to obtain written informed consent that shall include the estimated total cost of the improvement and the estimated monthly rent increase. Such form shall be completed and preserved in the centralized electronic retention system to be operational by June 14, 2020. Nothing herein shall relieve a landlord, lessor, or agent thereof of his or her duty to retain proper documentation of all improvements performed or any rent increases resulting from said improvements.

  1. The division shall establish an annual inspection and audit process which shall review twenty-five percent of applications for a temporary major capital improvement increase that have been submitted and approved. Such process shall include individual inspections and document review to ensure that owners complied with all obligations and responsibilities under the law for temporary major capital improvement increases. Inspections shall include in-person confirmation that such improvements have been completed in such way as described in the application.
  2. The division shall issue a notice to the landlord and all the tenants sixty days prior to the end of the temporary major capital improvement increase and shall include the initial approved increase and the total amount to be removed from the legal regulated rent inclusive of any increases granted by the applicable rent guidelines board.

§ 26-512 Stabilization provisions.

  1. No owner of property subject to this law shall charge or collect any rent in excess of the initial legal regulated rent or adjusted initial legal regulated rent until the end of any lease or other rental agreement in effect on the local effective date until such time as a different legal regulated rent shall be authorized pursuant to guidelines adopted by a rent guidelines board.
  2. The initial regulated rent for housing accommodations subject to this law on the local effective date of the emergency tenant protection act of nineteen seventy-four or which become subject to this law thereafter, pursuant to such act, shall be:

   (1) For housing accommodations which were regulated pursuant to this law or the city rent and rehabilitation law prior to July first, nineteen hundred seventy-one, and which became vacant on or after such date and prior to the local effective date of the emergency tenant protection act of nineteen seventy-four, the rent reserved in the last effective lease or other rental agreement; provided that such initial rent may be adjusted on application of the tenant pursuant to subdivision b of section 26-513 of this chapter.

   (2) For housing accommodations which were regulated pursuant to the city rent and rehabilitation law on the local effective date of the emergency tenant protection act of nineteen seventy-four, and thereafter become vacant, the rent agreed to by the landlord and the tenant and reserved in a lease or provided for in a rental agreement; provided that such initial rent may be adjusted on application of the tenant pursuant to subdivision b of section 26-513 of this chapter.

   (3) For housing accommodations other than those described in paragraphs one and two of this subdivision, the rent reserved in the last effective lease or other rental agreement.

   (4) For any plot or parcel of land which had been regulated pursuant to the city rent and rehabilitation law prior to July first, nineteen hundred seventy-one and which,

      (i) became vacant on or after July first, nineteen hundred seventy-one and prior to July first, nineteen hundred seventy-four, the rent reserved in a lease or other rental agreement in effect on June thirtieth, nineteen hundred seventy-four plus increases authorized by the rent guidelines board under this law for leases or other rental agreements commencing thereafter; provided that such initial rent may be adjusted on application of the tenant pursuant to subdivision b of section 26-513 of this chapter or,

      (ii) became vacant on or after July first, nineteen hundred seventy-four, the rent agreed to by the landlord and the tenant and reserved in a lease or other rental agreement plus increases authorized by the rent guidelines board under this law for leases or other rental agreements commencing thereafter; provided that such initial rent may be adjusted on application of the tenant pursuant to subdivision b of section 26-513 of this chapter.

      (iii) Where the commissioner has determined that the rent charged is in excess of the lawful rents as stated in subparagraph (i) or (ii) hereof, plus lawful increases thereafter, he or she shall provide for a cash refund or a credit, to be applied against future rent, in the amount of any rent overcharge collected by an owner and any penalties, costs, attorneys’ fees and interest from the date of the overcharge at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules for which the owner is assessed.

  1. With respect to accommodations for which the initial legal regulated rent is governed by paragraph two of subdivision b hereof, no increase of such initial legal regulated rent pursuant to annual guidelines adopted by the rent guidelines board shall become effective until the expiration of the first lease or rental agreement taking effect after the local effective date of the emergency tenant protection act of nineteen seventy-four, but in no event before one year after the commencement of such rental agreement.
  2. With respect to accommodations, other than those referred to in subdivision c, for which a lease is entered into after the local effective date of the emergency tenant protection act of nineteen seventy-four, but before the effective date of the first guidelines applicable to such accommodations, the lease may provide for an adjustment of rent pursuant to such guidelines to be effective on the first day of the month next succeeding the effective date of such guidelines.
  3. Notwithstanding any contrary provisions of this law, on and after July first, nineteen hundred eighty-four, the legal regulated rent authorized for a housing accommodation subject to the provisions of this law shall be the rent registered pursuant to section 26-517 of this chapter subject to any modification imposed pursuant to this law.
  4. [Repealed.]

§ 26-513 Application for adjustment of initial rent.

  1. The tenant or owner of a housing accommodation made subject to this law by the emergency tenant protection act of nineteen seventy-four may, within sixty days of the local effective date of this section or the commencement of the first tenancy thereafter, whichever is later, file with the commissioner an application for adjustment of the initial legal regulated rent for such housing accommodation. The commissioner may adjust such initial legal regulated rent upon a finding that the presence of unique or peculiar circumstances materially affecting the initial legal regulated rent has resulted in a rent which is substantially different from the rents generally prevailing in the same area for substantially similar housing accommodations.
    1. The tenant of a housing accommodation that was regulated pursuant to the city rent and rehabilitation law or this law prior to July first, nineteen hundred seventy-one and that became vacant on or after January first, nineteen hundred seventy-four may file with the commissioner within ninety days after notice has been received pursuant to subdivision d of this section, an application for adjustment of the initial legal regulated rent for such housing accommodation. Such tenant need only allege that such rent is in excess of the fair market rent and shall present such facts which, to the best of his or her information and belief, support such allegation. The rent guidelines board shall promulgate as soon as practicable after the local effective date of the emergency tenant protection act of nineteen seventy-four guidelines for the determination of fair market rents for housing accommodations as to which any application may be made pursuant to this subdivision. In rendering a determination on an application filed pursuant to this subdivision b the commissioner shall be guided by such guidelines and by the rents generally prevailing in the same area for substantially similar housing accommodations. Where the commissioner has determined that the rent charged is in excess of the fair market rent he or she shall, in addition to any other penalties or remedies permitted by law, order a refund of any excess paid since January first, nineteen hundred seventy-four or the date of the commencement of the tenancy, whichever is later. Such refund shall be made by the landlord in cash or as a credit against future rents over a period not in excess of six months.

   2. The provisions of paragraph one of this subdivision shall not apply to a tenant of a housing accommodation for which the initial legal regulated rent is no greater than the maximum rent that would have been in effect under this law on December thirty-first, nineteen hundred seventy-three, or for the period commencing January first, nineteen hundred seventy-four and ending December thirty-first, nineteen hundred seventy-five as calculated pursuant to the city rent and rehabilitation law (if no such maximum rent has been calculated for a particular unit for the period commencing January first, nineteen hundred seventy-four and ending December thirty-first, nineteen hundred seventy-five, the division of housing and community renewal shall calculate such a rent), as the case may be, if such apartment had not become vacant on or after January first, nineteen hundred seventy-four, plus the amount of any adjustment which would have been authorized under this law for renewal leases or other rental agreement, whether or not such housing accommodation was subject to this law, for leases or other rental agreements commencing on or after July first, nineteen hundred seventy-four.

  1. Upon receipt of any application filed pursuant to this section, the commissioner shall notify the owner or tenant, as the case may be, and provide a copy to him or her of such application. Such owner or tenant shall be afforded a reasonable opportunity to respond to the application. A hearing may be held upon the request of either party, or the commissioner may hold a hearing on his or her own motion. The commissioner shall issue a written opinion to both the tenant and the owner upon rendering his or her determination.
  2. Within thirty days after the local effective date of the emergency tenant protection act of nineteen seventy-four the owner of housing accommodations as to which an application for adjustment of the initial legal regulated rent may be made pursuant to subdivision b of this section shall give notice in writing by certified mail to the tenant of each such housing accommodation on a form prescribed by the commissioner of the initial legal regulated rent for such housing accommodation, the maximum rent at the time such housing accommodation became vacant and of such tenant’s right to file an application for adjustment of the initial legal regulated rent of such housing accommodation.
  3. Notwithstanding any contrary provision in this law an application for an adjustment pursuant to this section must be filed within ninety days from the initial registration. This subdivision shall not extend any other time limitations imposed by this law.

§ 26-514 Maintenance of services.

In order to collect a rent adjustment authorized pursuant to the provisions of subdivision d of section 26-510 of this chapter an owner must file with the state division of housing and community renewal, on a form which the commissioner shall prescribe, a written certification that he or she is maintaining and will continue to maintain all services furnished on the date upon which the emergency tenant protection act of nineteen seventy-four becomes a law or required to be furnished by any state law or local law, ordinance or regulation applicable to the premises. In addition to any other remedy afforded by law, any tenant may apply to the state division of housing and community renewal, for a reduction in the rent to the level in effect prior to its most recent adjustment and for an order requiring services to be maintained as provided in this section, and the commissioner shall so reduce the rent if it is found that the owner has failed to maintain such services. The owner shall also be barred from applying for or collecting any further rent increases. The restoration of such services shall result in the prospective elimination of such sanctions. The owner shall be supplied with a copy of the application and shall be permitted to file an answer thereto. A hearing may be held upon the request of either party, or the commissioner may hold a hearing upon his or her own motion. The commissioner may consolidate the proceedings for two or more petitions applicable to the same building or group of buildings or development. If the commissioner finds that the owner has knowingly filed a false certification, it shall, in addition to abating the rent, assess the owner with the reasonable costs of the proceeding, including reasonable attorneys’ fees, and impose a penalty not in excess of two hundred fifty dollars for each false certification. The amount of the reduction in rent ordered by the state division of housing and community renewal under this subdivision shall be reduced by any credit, abatement or offset in rent which the tenant has received pursuant to section two hundred thirty-five-b of the real property law, that relates to one or more conditions covered by such order.

§ 26-515 Recovery of possession.

  1. An owner seeking to recover possession pursuant to subparagraph (c) of paragraph nine of subdivision c of section 26-511 of this chapter shall notify the tenant in occupancy not more than one hundred fifty and not less than one hundred twenty days prior to the end of the tenant’s lease term, by mail, of such owner’s intention not to renew such lease in order to recover the dwelling unit for its charitable or educational purposes. The owner may give such notice within one hundred twenty days of the expiration of the tenant’s lease term, provided it may not commence a summary proceeding to recover the dwelling unit until the expiration of one hundred twenty days from the giving of such notice and, provided, further, that the tenant may remain in occupancy until the commencement of such proceeding at the same rent and upon the same terms and conditions as were provided in his or her expired lease. The notice of intention not to renew the tenant’s lease shall be accompanied by a notice on a form prescribed by the division of housing and community renewal setting forth the penalties to which an owner may be subject for his or her failure to utilize the tenant’s dwelling unit for the charitable or educational purpose for which recovery of the dwelling unit is sought.
  2. If any owner who recovers a dwelling unit pursuant to such subparagraph (c), or any successor in interest, utilizes such unit for purposes other than those permitted under such subparagraph, then such owner or successor shall, unless for good cause shown, be liable to the removed tenant for three times the damages sustained on account of such removal plus reasonable attorney’s fees and costs as determined by the court, provided that such tenant commences such action within three years from the date of recovery of the unit. The damages sustained by such tenant shall be the difference between the rent paid by such tenant for the recovered dwelling unit, and the rental value of a comparable rent regulated dwelling unit on the open market. In addition to any other damage, the reasonable cost of removal of the tenant’s property shall be a lawful measure of damages.
  3. Where a dwelling unit has been recovered pursuant to such subparagraph (c) and within four years of such recovery is rented to a person or entity for purposes other than those permitted pursuant to such subparagraph (c), unless for good cause shown, the rent charged by such owner or any successor in interest for four years following such recovery shall not exceed the last regulated rent payable prior to such recovery.
  4. If the owner is found by the commissioner, to have recovered possession of a dwelling unit pursuant to such subparagraph (c) and within four years of such recovery such owner or any successor in interest shall have utilized such unit for purposes other than those permitted pursuant to such subparagraph (c), unless for good cause shown, the commissioner shall impose upon such owner or successor in interest, by administrative order after hearing, a civil penalty for any such violation. Such penalty shall be in an amount of up to one thousand dollars for each offense. Such order shall be deemed a final determination for the purposes of judicial review. Such penalty may, upon the expiration of the period for seeking review pursuant to article seventy-eight of the civil practice law and rules, be docketed and enforced in the manner of a judgment of the supreme court.

§ 26-516 Enforcement and procedures.

  1. Subject to the conditions and limitations of this subdivision, any owner of housing accommodations who, upon complaint of a tenant, or of the state division of housing and community renewal, is found by the state division of housing and community renewal, after a reasonable opportunity to be heard, to have collected an overcharge above the rent authorized for a housing accommodation subject to this chapter shall be liable to the tenant for a penalty equal to three times the amount of such overcharge. If the owner establishes by a preponderance of the evidence that the overcharge was not willful, the state division of housing and community renewal shall establish the penalty as the amount of the overcharge plus interest. After a complaint of rent overcharge has been filed and served on an owner, the voluntary adjustment of the rent and/or the voluntary tender of a refund of rent overcharges shall not be considered by the division of housing and community renewal or a court of competent jurisdiction as evidence that the overcharge was not willful. (i) Except as to complaints filed pursuant to clause (ii) of this paragraph, the legal regulated rent for purposes of determining an overcharge, shall be the rent indicated in the most recent reliable annual registration statement filed and served upon the tenant six or more years prior to the most recent registration statement, (or, if more recently filed, the initial registration statement) plus in each case any subsequent lawful increases and adjustments. The division of housing and community renewal or a court of competent jurisdiction, in investigating complaints of overcharge and in determining legal regulated rent, shall consider all available rent history which is reasonably necessary to make such determinations. (ii) As to complaints filed within ninety days of the initial registration of a housing accommodation, the legal regulated rent shall be deemed to be the rent charged on the date six years prior to the date of the initial registration of the housing accommodation (or, if the housing accommodation was subject to this chapter for less than six years, the initial legal regulated rent) plus in each case, any lawful increases and adjustments. Where the rent charged on the date six years prior to the date of the initial registration of the accommodation cannot be established, such rent shall be established by the division.

Where the prior rent charged for the housing accommodation cannot be established, such rent shall be established by the division provided that where a rent is established based on rentals determined under the provisions of the local emergency housing rent control act such rent must be adjusted to account for no less than the minimum increases which would be permitted if the housing accommodation were covered under the provisions of this chapter, less any appropriate penalties.

   (1) The order of the state division of housing and community renewal or court of competent jurisdiction shall apportion the owner’s liability between or among two or more tenants found to have been overcharged by such owner during their particular tenancy of a unit.

   (2) A complaint under this subdivision may be filed with the state division of housing and community renewal or in a court of competent jurisdiction at any time, however any recovery of overcharge penalties shall be limited to the six years preceding the complaint. A penalty of three times the overcharge shall be assessed upon all overcharges willfully collected by the owner starting six years before the complaint is filed.

   (3) Any affected tenant shall be notified of and given an opportunity to join in any complaint filed by an officer or employee of the state division of housing and community renewal.

   (4) An owner found to have overcharged shall be assessed the reasonable costs and attorney’s fees of the proceeding and interest from the date of the overcharge at the rate of interest payable on a judgment pursuant to section five thousand four of the civil practice law and rules.

   (5) The order of the state division of housing and community renewal awarding penalties may, upon the expiration of the period in which the owner may institute a proceeding pursuant to article seventy-eight of the civil practice law and rules, be filed and enforced by a tenant in the same manner as a judgment or not in excess of twenty percent thereof per month may be offset against any rent thereafter due the owner.

  1. In addition to issuing the specific orders provided for by other provisions of this law, the state division of housing and community renewal shall be empowered to enforce this law and the code by issuing, upon notice and a reasonable opportunity for the affected party to be heard, such other orders as it may deem appropriate.
  2. If the owner is found by the commissioner:

   (1) to have violated an order of the division the commissioner may impose by administrative order after hearing, a civil penalty at minimum in the amount of one thousand but not to exceed two thousand dollars for the first such offense, and at a minimum in the amount of two thousand but not to exceed three thousand dollars for each subsequent offense; or

   (2) to have harassed a tenant to obtain vacancy of his or her housing accommodation, the commissioner may impose by administrative order after hearing, a civil penalty for any such violation. Such penalty shall be at a minimum in the amount of two thousand but not to exceed three thousand dollars for the first such offense, and at minimum in the amount of ten thousand but not to exceed eleven thousand dollars for each subsequent offense or for a violation consisting of conduct directed at the tenants of more than one housing accommodation.

  1. Any proceeding pursuant to article seventy-eight of the civil practice law and rules seeking review of any action pursuant to this chapter shall be brought within sixty days of the expiration of the ninety day period and any extension thereof provided in subdivision h of this section or the rendering of a determination, whichever is later. Any action or proceeding brought by or against the commissioner under this law shall be brought in the county in which the housing accommodation is located.
  2. Violations of this law, or of the code and orders issued pursuant thereto may be enjoined by the supreme court upon proceedings commenced by the state division of housing and community renewal which shall not be required to post bond.
  3. In furtherance of its responsibility to enforce this law, the state division of housing and community renewal shall be empowered to administer oaths, issue subpoenas, conduct investigations, make inspections and designate officers to hear and report. The division shall safeguard the confidentiality of information furnished to it at the request of the person furnishing same, unless such information must be made public in the interest of establishing a record for the future guidance of persons subject to this law.
  4. Except where a specific provision of this law requires the maintenance of rent records for a longer period, including records of the useful life of improvements made to any housing accommodation or any building, any owner who has duly registered a housing accommodation pursuant to section 26-517 of this chapter shall not be required to maintain or produce any records relating to rentals of such accommodation for more than six years prior to the most recent registration or annual statement for such accommodation. However, an owner’s election not to maintain records shall not limit the authority of the division of housing and community renewal and the courts to examine the rental history and determine legal regulated rents pursuant to this section.
  5. The division of housing and community renewal, and the courts, in investigating complaints of overcharge and in determining legal regulated rents, shall consider all available rent history which is reasonably necessary to make such determinations, including but not limited to (i) any rent registration or other records filed with the state division of housing and community renewal, or any other state, municipal or federal agency, regardless of the date to which the information on such registration refers; (ii) any order issued by any state, municipal or federal agency; (iii) any records maintained by the owner or tenants; and (iv) any public record kept in the regular course of business by any state, municipal or federal agency. Nothing contained in this subdivision shall limit the examination of rent history relevant to a determination as to:

   (i) whether the legality of a rental amount charged or registered is reliable in light of all available evidence including but not limited to whether an unexplained increase in the registered or lease rents, or a fraudulent scheme to destabilize the housing accommodation, rendered such rent or registration unreliable;

   (ii) whether an accommodation is subject to the emergency tenant protection act or the rent stabilization law;

   (iii) whether an order issued by the division of housing and community renewal or by a court, including, but not limited to an order issued pursuant to section 26-514 of this chapter, or any regulatory agreement or other contract with any governmental agency, and remaining in effect within six years of the filing of a complaint pursuant to this section, affects or limits the amount of rent that may be charged or collected;

   (iv) whether an overcharge was or was not willful;

   (v) whether a rent adjustment that requires information regarding the length of occupancy by a present or prior tenant was lawful;

   (vi) the existence or terms and conditions of a preferential rent, or the propriety of a legal registered rent during a period when the tenants were charged a preferential rent;

   (vii) the legality of a rent charged or registered immediately prior to the registration of a preferential rent; or

   (viii) the amount of the legal regulated rent where the apartment was vacant or temporarily exempt on the date six years prior to a tenant’s complaint.

  1. The state division of housing and community renewal may, by regulation, provide for administrative review of all orders and determinations issued by it pursuant to this chapter. Any such regulation shall provide that if a petition for such review is not determined within ninety days after it is filed, it shall be deemed to be denied. However, the division may grant one extension not to exceed thirty days with the consent of the party filing such petition; any further extension may only be granted with the consent of all parties to the petition. No proceeding may be brought pursuant to article seventy-eight of the civil practice law and rules to challenge any order or determination which is subject to such administrative review unless such review has been sought and either (1) a determination thereon has been made or (2) the ninety day period provided for determination of the petition for review (or any extension thereof) has expired.

§ 26-517 Rent registration.

  1. Each housing accommodation which is subject to this law shall be registered by the owner thereof with the state division of housing and community renewal prior to July first, nineteen hundred eighty-four upon forms prescribed by the commissioner. The data to be provided on such forms shall include the following:

   (1) the name and address of the building or group of buildings or development in which such housing accommodation is located and the owner and the tenant thereof;

   (2) the number of housing accommodations in the building or group of buildings or development in which such housing accommodation is located;

   (3) the number of housing accommodations in such building or group of buildings or development subject to this code and the number of such housing accommodations subject to the local emergency housing rent control act;

   (4) the rent charged on the registration date;

   (5) the number of rooms in such housing accommodation; and

   (6) all services provided on the date that the housing accommodation became subject to this chapter.

a-1. Within thirty days of changing his address, the managing agent or, if there is no managing agent, the owner, of a building or group of buildings or development, such agent or owner shall advise the state division of housing and community renewal and all tenants of his new address.

  1. Registration pursuant to this section shall not be subject to the freedom of information law provided that registration information relative to a tenant, owner, lessor or subtenant shall be made available to such party or his or her authorized representative.
  2. Housing accommodations which become subject to this chapter after the initial registration period must be registered within ninety days thereafter. Registration of housing accommodations subject to the local emergency housing rent control act immediately prior to the date of initial registration as provided in this section shall include, in addition to the items listed above, where existing, the maximum base rent immediately prior to the date that such housing accommodations become subject to this chapter.
  3. Copies of the registration shall be filed with the state division of housing and community renewal in such place or places as it may require. In addition, one copy of that portion of the registration statement which pertains to the tenant’s unit must be mailed by the owner to the tenant in possession at the time of initial registration or to the first tenant in occupancy if the apartment is vacant at the time of initial registration.
  4. The failure to file a proper and timely initial or annual rent registration statement shall, until such time as such registration is filed, bar an owner from applying for or collecting any rent in excess of the legal regulated rent in effect on the date of the last preceding registration statement or if no such statements have been filed, the legal regulated rent in effect on the date that the housing accommodation became subject to the registration requirements of this section. The filing of a late registration shall result in the prospective elimination of such sanctions and provided that increases in the legal regulated rent were lawful except for the failure to file a timely registration, the owner, upon the service and filing of a late registration, shall not be found to have collected an overcharge at any time prior to the filing of the late registration. If such late registration is filed subsequent to the filing of an overcharge complaint, the owner shall be assessed a late filing surcharge for each late registration in an amount equal to fifty percent of the timely rent registration fee.
  5. An annual statement shall be filed containing the current rent for each unit and such other information contained in subdivision a of this section as shall be required by the division. The owner shall provide each tenant then in occupancy with a copy of that portion of such annual statement as pertains to the tenant’s unit.
  6. Each housing accommodation for which a timely registration statement was filed between April first, nineteen hundred eighty-four and June thirtieth, nineteen hundred eighty-four, pursuant to subdivision a of this section shall designate the rent charged on April first, nineteen hundred eighty-four, as the rent charged on the registration date.

§ 26-517.1 Fees.

  1. The department of finance shall collect from the owner of each housing accommodation registered pursuant to section 26-517 of this chapter an annual fee in the amount of twenty dollars per year for each unit subject to this law, in order to defray costs incurred by the city pursuant to subdivision c of section eight of the emergency tenant protection act of nineteen hundred seventy-four.
    1. Pursuant to the provisions of subdivision d of section eight of the emergency tenant protection act of nineteen seventy-four, the failure to pay the fee imposed by the provisions of subdivision a of this section shall constitute a charge due and owing the city. All such fees due and owing the city shall constitute a debt recoverable from the owner and the city may commence an action or proceeding for the recovery of such fees or may file a lien upon the building and lot. If the payment of such fees is not received by the city within sixty days of the date contained in the written notice requesting such payment, the city shall provide a second written notice to the owner setting forth the amount of fees due and owing the city and a demand for payment within thirty days thereof.

   (2) If such payment is not made to the city within such time, all unpaid fees shall constitute a lien upon the premises and shall be filed in the office of the city collector as an entry of the account stated in the book in which such charges against the premises are to be entered. Such lien shall have priority over all other liens and encumbrances on the premises except for the lien of taxes and assessments. However, no lien created pursuant to this subdivision against any premises shall be enforced against an owner or mortgagee of such premises who acquired in good faith an interest therein subsequent to the period for which the fee was imposed but prior to the creation of any such lien.

   (3) A notice pursuant to paragraph one of this subdivision, stating the amount due and the nature of the charge, shall be mailed by the city collector, within five days after such entry, to the last known address of the owner or agent.

   (4) If such charge is not paid within thirty days from the date of entry, it shall be the duty of the city collector to receive interest thereon at the same rate as is imposed on a delinquent tax on real property, to be calculated to the date of payment from the date of entry.

   (5) Such charge and the interest thereon shall continue to be, until paid, a lien on the premises. Such lien shall be a tax lien within the meaning of sections 11-319 and 11-401 of this code and may be sold, enforced or foreclosed in the manner provided in chapters three and four of title eleven of this code.

   (6) The provisions set forth in this subdivision shall be the sole remedy for the enforcement of this section.

  1. The provisions of subdivision a of this section shall be deemed to have been in full force and effect as of April first, nineteen hundred eighty-four.

§ 26-518 Hotel industry stabilization association.

  1. The hotel industry stabilization association registered with the department of housing preservation and development is hereby divested of all its powers and authority under this law. The stabilization code heretofore promulgated by such association, as approved by the department of housing preservation and development, is hereby continued to the extent that it is not inconsistent with law. Such code may be amended from time to time provided, however, that no such amendments shall be promulgated except by action of the commissioner of the division of housing and community renewal and provided further, that prior to the adoption of any such amendments, the commissioner shall (i) submit the proposed amendments to the commissioner of the department of housing preservation and development and allow such commissioner thirty days to make comments or recommendations on the proposed amendments, (ii) review the comments or recommendations, if any, made pursuant to clause (i) of this subdivision and make any revisions to the proposed amendments which the commissioner of the division of housing and community renewal deems appropriate provided that any such review and revision shall be completed within thirty days of receipt of such comments or recommendations and (iii) thereafter hold a public hearing on the proposed amendments. No provision of such code shall impair or diminish any right or remedy granted to any party by this law or any other provision of law.
  2. A code shall not be approved hereunder unless it appears to the commissioner of the division of housing and community renewal that it provides for a cash refund or a credit to be applied against future rent, in the amount of the excess, if any, of rent paid since January first, nineteen hundred sixty-nine, over the permissible fair increase, and that it gives a hotel tenant the right to request a six month lease at the permissible rent rate within thirty days of the approval of such code, or, if his or her tenancy commences after such thirty day period, within thirty days of the commencement of his or her tenancy, and that is in compliance with the standards set forth in subdivision c of section 26-511 to the extent such standards are applicable to the hotel industry, and that it provides specifically that no owner shall refuse to extend or renew a tenancy for the purpose of preventing a hotel tenant from becoming a permanent tenant.
  3. Each landlord who is made subject to this law pursuant to section 26-505 or 26-506 of this code shall furnish to each permanent tenant signing a new or renewal lease, a rider describing the rights and duties of owners and tenants as provided under the rent stabilization law of nineteen hundred sixty-nine. Such rider shall be in a form promulgated by the commissioner and shall conform to the intent of section 5-702 of the general obligations law and shall be in a print size larger than the print size of the lease to which the rider is attached.

§ 26-519 Suspension of registration.

The department of housing preservation and development may, after notice and opportunity for hearing, suspend the registration of an association if it finds that the articles, code, rules or other conduct thereof do not conform to the requirements of this law and any such suspension shall remain in effect until such administration issues an order determining that such articles, rules, code or other conduct have been modified to conform with such requirements. For the purposes of this law, the members in good standing of the association shall be deemed to be members in good standing of an association registered with the department of housing preservation and development during and only during, the first sixty days of such period of suspension.

§ 26-520 Expiration date.

This chapter shall expire on April 1, 2021 unless rent control shall sooner terminate as provided in subdivision three of section one of the local emergency housing rent control law.

Chapter 5: Unlawful Eviction

§ 26-521 Unlawful eviction.

  1. It shall be unlawful for any person to evict or attempt to evict an occupant of a dwelling unit who has lawfully occupied the dwelling unit for thirty consecutive days or longer or who has entered into a lease with respect to such dwelling unit or has made a request for a lease for such dwelling unit pursuant to the hotel stabilization provisions of the rent stabilization law except to the extent permitted by law pursuant to a warrant of eviction or other order of a court of competent jurisdiction or a governmental vacate order by:

   (1) using or threatening the use of force to induce the occupant to vacate the dwelling unit; or

   (2) engaging in a course of conduct which interferes with or is intended to interfere with or disturb the comfort, repose, peace or quiet of such occupant in the use or occupancy of the dwelling unit, to induce the occupant to vacate the dwelling unit including, but not limited to, the interruption or discontinuance of essential services; or

   (3) engaging or threatening to engage in any other conduct which prevents or is intended to prevent such occupant from the lawful occupancy of such dwelling unit or to induce the occupant to vacate the dwelling unit including, but not limited to, removing the occupant’s possessions from the dwelling unit, removing the door at the entrance to the dwelling unit; removing, plugging or otherwise rendering the lock on such entrance door inoperable; or changing the lock on such entrance door without supplying the occupant with a key.

  1. It shall be unlawful for an owner of a dwelling unit to fail to take all reasonable and necessary action to restore to occupancy an occupant of a dwelling unit who either vacates, has been removed from or is otherwise prevented from occupying a dwelling unit as the result of any of the acts or omissions prescribed in subdivision a of this section and to provide to such occupant a dwelling unit within such dwelling suitable for occupancy, after being requested to do so by such occupant or the representative of such occupant, if such owner either committed such unlawful acts or omissions or knew or had reason to know of such unlawful acts or omissions, or if such acts or omissions occurred within seven days prior to such request.

§ 26-522 Definitions.

  1. For the purpose of this chapter the following terms shall have the following meanings:

   (1) “Dwelling unit” means a dwelling unit as such term is defined in subdivision thirteen of section 27-2004 of the housing maintenance code.

   (2) “Owner” means an owner as defined in section 27-2004 of the housing maintenance code.

  1. For the purposes of this chapter a “person” shall not include a government employee acting within the scope of employment.

§ 26-523 Criminal and civil penalties.

  1. Any person who intentionally violates or assists in the violation of any of the provisions of this chapter shall be guilty of a class A misdemeanor. Each such violation shall be a separate and distinct offense.
  2. Such person shall also be subject to a civil penalty of not less than one thousand nor more than ten thousand dollars for each violation. Each such violation shall be a separate and distinct offense. In the case of a failure to take all reasonable and necessary action to restore an occupant pursuant to subdivision b of section 26-521 of this chapter, such person shall be subject to an additional civil penalty of not more than one hundred dollars per day from the date on which restoration to occupancy is requested until the date on which restoration occurs, provided, however, that such period shall not exceed six months.

§ 26-524 Enforcement actions or proceedings.

The civil penalties prescribed by this chapter shall be recovered by an action or proceeding in any court of competent jurisdiction. All such actions or proceedings shall be brought in the name of the city by the corporation counsel. In addition, the corporation counsel may institute any other action or proceeding in any court of competent jurisdiction that may be appropriate or necessary for the enforcement of the provisions of this chapter, including actions to secure permanent injunctions enjoining any acts or practices which constitute a violation of any provision of this chapter, mandating compliance with the provisions of this chapter or for such other relief as may be appropriate. In any such action or proceeding the city may apply to any court of competent jurisdiction, or to a judge or justice thereof, for a temporary restraining order or preliminary injunction enjoining and restraining all persons from violating any provision of this chapter, mandating compliance with the provisions of this chapter, or for such other relief as may be appropriate, until the hearing and determination of such action or proceeding and the entry of final judgment or order therein. The court, or judge or justice thereof, to whom such application is made, is hereby authorized forthwith to make any or all of the orders above specified, as may be required in such application, with or without notice, and to make such other or further orders or directions as may be necessary to render the same effectual. No undertaking shall be required as a condition to the granting or issuing of such order, or by reason thereof.

§ 26-525 Lien.

Every civil penalty imposed by judgment upon an owner pursuant to this chapter shall be a lien upon the dwelling with respect to which such civil penalty is imposed from the time of the filing of a notice of pendency in the office of the clerk of the county in which such dwelling is situated.

§ 26-526 Notice of pendency.

  1. In any action or proceeding instituted under this chapter, the corporation counsel may file in the county clerk’s office of the county where the dwelling affected by such action or proceeding is situated, a notice of the pendency of such action or proceeding. Such notice may be filed at the time of the commencement of the action or proceeding, or at any time afterwards, before final judgment or order. The corporation counsel shall designate in writing the name of each person against whom the notice is filed and the number of each block on the land map of the county which is affected by the notice. The county clerk in whose office the notice of pendency is filed shall record and index such notice against the names and blocks designated.
  2. Any such notice may be vacated upon the order of a judge of the court in which such action or proceeding was instituted or is pending, or upon the consent in writing of the corporation counsel. The clerk of the county where such notice is filed shall cancel such notice upon receipt of such consent or of a certified copy of such order.

§ 26-527 Liability for costs.

Neither the city nor any officer or employee thereof shall be liable for costs in any action or proceeding brought pursuant to this chapter.

§ 26-528 Monies recovered.

All monies recovered under this chapter shall be paid into the general fund of the city.

§ 26-529 Remedies and penalties.

The remedies and penalties provided for herein shall be in addition to any other remedies and penalties provided under other provisions of law.

Chapter 6: Increase of Rentals

§ 26-530 Increase of rentals.

  1. Before acting upon any application or motion for an increase in the maximum rental per room to be charged tenants and cooperators of dwellings where the department of housing preservation and development is the “supervising agency” under the provisions of the private housing finance law, a public hearing shall be held. Said hearing shall be held upon no less than twenty days’ written notice to the tenants and said notice shall have annexed thereto a copy of the application or motion for increase in rentals and shall set forth the facts upon which the application or motion is based.
  2. No application or motion for an increase in the maximum rental per room shall be entertained or acted upon hereunder for a period of two years from the date or any previous order of the “supervising agency” for the increase of maximum rent affecting the same dwelling.
  3. No increase in maximum rental per room or surcharge thereto or any other penalty shall be charged to or assessed against any tenant or tenant-cooperator of dwellings, where the department of housing preservation and development is the “supervising agency”, for failure to authorize the commissioner of finance to verify to such “supervising agency” the amount of income as it appears on their New York state or New York city income tax returns.

Chapter 7: Rent Increase Exemption For Low Income Elderly Persons and Persons With Disabilities

§ 26-601 Definitions.

As used in this section.

  1. “Commissioner” means the commissioner of housing and community renewal of the state of New York.
  2. “Dwelling unit” means that part of a dwelling in which an eligible head of the household resides and which is subject to the provisions of either article II, IV, V, or XI of the private housing finance law, or that part of a dwelling which was or continues to be subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, in which an eligible head of the household resides.
  3. “Eligibility date” means the later of (1) January first, nineteen hundred seventy-five, or (2) the last day of the month in which a person became an eligible head of a household in the dwelling unit in which such person resides at the time of filing the most recent application for benefits hereunder, or in the case of a dwelling subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, “eligibility date” means the later of (1) July first, nineteen hundred seventy-seven, or (2) the last day of the month in which a person became an eligible head of a household in the dwelling unit in which such person resides at the time of filing the most recent application for benefits hereunder.
  4. “Eligible head of the household” means a person or his or her spouse who is sixty-two years of age or older or who qualifies as a person with a disability pursuant to section 26-617 of this chapter and is entitled to the possession or to the use and occupancy of a dwelling unit, provided, however, that with respect to a dwelling which was subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, “eligible head of the household” shall be limited to that person or his or her spouse who was entitled to possession or the use and occupancy of such dwelling unit at the time of termination of such mortgage, and whose income when combined with the income of all other members of the household whose head of household is sixty-two years of age or older does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, twenty-nine thousand dollars beginning July first, two thousand nine, and fifty thousand dollars beginning July first, two thousand fourteen, for the taxable period, or whose income for the current income tax year when combined with the income of all members of the household residing in the housing accommodation whose head of the household is a person with a disability does not exceed fifty thousand dollars beginning July first, two thousand fourteen.
  5. “Housing company” means any limited-profit housing company, limited dividend housing company, redevelopment company or housing development fund company incorporated pursuant to the private housing finance law and operated exclusively for the benefit of persons or families of low income, or any corporate owner of a dwelling which is or was subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended.
  6. “Income” means income received by the eligible head of the household combined with the income of all other members of the household from all sources after deduction of all income and social security taxes and includes without limitation, social security and retirement benefits, supplemental security income and additional state payments, public assistance benefits, interest, dividends, net rental income, salary and earnings, and net income from self-employment, but shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of an eligible head of the household receiving benefits hereunder, whether received by the eligible head of the household or any other member of the household. When the eligible head of a household has retired on or after the commencement of the taxable period and prior to the date of making an application for a rent increase exemption order/tax abatement certificate pursuant to this chapter, such person’s income shall be adjusted by excluding salary or earnings and projecting such person’s retirement income over the entire taxable period.
  7. “Income tax year” means a twelve month period for which the head of the household filed a federal personal income tax return, or if no such return is filed, the calendar year.
  8. “Increase in maximum rent” means any increase in the maximum rent for the dwelling unit becoming effective on or after the eligibility date, including capital assessments and voluntary capital contributions but excluding any increase in maximum rent attributable to gas or electrical utility charges or an increase in dwelling space, services or equipment, provided, however, that with respect to any dwelling unit in a dwelling which is or was subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, “increase in maximum rent” shall not include any increase in maximum rent attributable to capital assessments or voluntary capital contributions.
  9. “Maximum rent” means the maximum rent, excluding gas and electric utility charges, which has been authorized or approved by the commissioner or the supervising agency or the legal regulated rent established for the dwelling unit pursuant to the provisions of either article II, IV, V or XI of the private housing finance law, or the rental established for a cooperatively owned dwelling unit previously regulated pursuant to the provisions of article II, IV, V or XI of the private housing finance law, or the rental established for a dwelling unit, in a dwelling subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended or such rent established for a dwelling unit which was subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended.
  10. “Members of the household” means the head of the household and any person, permanently residing in the dwelling unit.
  11. “Supervising agency” means the department of housing preservation and development.
  12. “Taxable period” means the income tax year immediately preceding the date of making application for a rent increase exemption order/tax abatement certificate.

§ 26-602 Real property tax exemption.

Real property of a housing company shall be exempt from real property taxes, in an amount equal to the rent increase exemptions actually credited to eligible heads of households pursuant to this chapter. Any such exemption shall be in addition to any other exemption or abatement of taxes authorized by law.

§ 26-603 Reimbursement for rent exemptions; rent increase exemption fund established.

In the event that the real property of a housing company containing one or more dwelling units shall be totally exempt from local and municipal real property taxes for any fiscal year as a result of the exemptions from maximum rent credited pursuant to this section or otherwise, the supervising agency may make or contract to make payments to a housing company in an amount not exceeding the amount necessary to reimburse the housing company for the total dollar amount of all exemptions from the payment of maximum rent accorded pursuant to this chapter to eligible heads of the household residing in dwelling units in such real property. A fund to be known as the rent increase exemption fund shall be created and established in order to provide for the payments made pursuant to this section. There may be paid into such fund (1) all of the rental surcharges collected from the housing companies organized and existing pursuant to articles II, IV, V and XI of the private housing finance law and (2) any moneys appropriated or otherwise made available for the purpose of such fund.

§ 26-604 Rent increase exemption funding requirement.

In the event that the real property of a housing company containing one or more dwelling units shall be totally exempt from local and municipal real property taxes as a result of the exemption from maximum rent credited pursuant to this chapter or otherwise, the supervising agency shall not issue any rent increase exemption order/tax abatement certificates unless there are monies in the rent increase exemption fund to provide reimbursement to the housing company for the total dollar amount of all exemptions from the payment of maximum rent accorded pursuant to this chapter to eligible heads of the household residing in dwelling units in such real property.

§ 26-605 Rent increase exemption orders/tax abatement certificates.

(a) Subject to the provisions of this chapter an eligible head of the household may obtain a rent increase exemption order/tax abatement certificate entitling him or her to an exemption from increases in the maximum rent otherwise payable in one of the following amounts:

   (1) where the eligible head of the household does not receive a monthly allowance pursuant to the social services law, the amount by which increases in the maximum rent subsequent to such persons’ eligibility date have resulted in the maximum rent exceeding one-third of the combined income of all members of the household for the taxable period, except that in no event shall a rent increase exemption order/tax abatement certificate become effective prior to January first, nineteen hundred seventy-six; or

   (2) where the eligible head of the household receives a monthly allowance for shelter pursuant to the social services law, an amount not exceeding that portion of any increase in maximum rent subsequent to such person’s eligibility date which is not covered by the maximum allowance for shelter which such person is entitled to receive pursuant to the social services law.

   (3) notwithstanding paragraph one of this subdivision, where the eligible head of the household is a person who qualifies as a person with a disability pursuant to section 26-617 of this chapter and who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen, the amount specified in such order, as adjusted by any other provision of this chapter, regardless of whether increases in the maximum rent subsequent to such persons’ eligibility date have resulted in the maximum rent exceeding one-third of the combined income of all members of the household for the taxable period.

  1. Notwithstanding any other provision of law, when a head of a household to whom the then current, valid tax abatement certificate has been issued under this chapter, chapter three or chapter four of this title moves his principal residence to a subsequent dwelling unit subject to this chapter, or which is or was subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, the head of the household may apply to the supervising agency, subject to the terms and conditions imposed by this chapter, for a tax abatement certificate relating to the subsequent dwelling unit, and such certificate may provide that the head of the household shall be exempt from paying that portion of the maximum rent for the subsequent dwelling unit which is the least of the following:

   (1) the amount by which the rent for the subsequent dwelling unit exceeds the last rent, as reduced, which the head of the household was required to actually pay in the original dwelling unit;

   (2) the last amount deducted from the maximum rent or legal regulated rent meaning the most recent monthly deduction for the applicant in the original dwelling unit pursuant to this section, section 26-406 or section 26-409 of this title; or

   (3) where the eligible head of the household does not receive a monthly allowance pursuant to the social services law, the amount by which the maximum rent of the subsequent dwelling unit exceeds one-third of the combined income of all members of the household except that this paragraph shall not apply to an eligible head of the household who qualifies as a person with a disability pursuant to section 26-617 of this chapter who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen.

Such certificate shall be effective as of the first day of the month in which the tenant applied for such exemption or as of the date the tenant took occupancy of the subsequent dwelling unit, whichever is later, provided both occur after the effective date of this law.
  1. Notwithstanding any other provision of law and to the extent applicable to the provisions of this chapter, any renewal application being made by the tenant pursuant to this section, any rent increase order then in effect with respect to such tenant shall be deemed renewed until such time as the department of housing preservation and development shall have found such tenant to be either eligible or ineligible for a rent increase exemption order but in no event for more than six additional months. If such tenant is found eligible, the order shall be deemed to have taken effect upon expiration of the exemption. In the event that any such tenant shall, subsequent to any such automatic renewal, not be granted a rent increase exemption order, such tenant shall be liable to his or her landlord for the difference between the amounts he or she has paid under the provisions of the automatically renewed order and the amounts which he or she would have been required to pay in the absence of such order. Any rent increase exemption order issued pursuant to this chapter shall include provisions giving notice as to the contents of this section relating to automatic renewals of rent exemption orders.
  2. Notwithstanding any other provision of law to the contrary, where an eligible head of the household holds a current, valid rent increase exemption order/tax abatement certificate and, after the effective date of this subdivision, there is a permanent decrease in income in an amount which exceeds twenty percent of such income as represented in such eligible head of household’s last approved application for a rent increase exemption order/tax abatement certificate or for renewal thereof, such eligible head of the household may apply for a redetermination of the amount set forth therein. Upon application, such amount shall be redetermined so as to reestablish the ratio of adjusted rent to income which existed at the time of approval of such eligible head of the household’s last application for a rent increase exemption order/tax abatement certificate or for renewal thereof; provided, however, that in no event shall the amount of the adjusted rent be redetermined to be (i) in the case of an eligible head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, less than one-third of income unless such head of the household qualifies as a person with a disability pursuant to section 26-617 of this chapter and has been granted a rent increase exemption order/tax abatement certificate that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen; or (ii) in the case of an eligible head of the household who receives a monthly allowance for shelter pursuant to the social services law, less than the maximum allowance for shelter which such eligible head of the household is entitled to receive pursuant to law. For purposes of this subdivision, a decrease in income shall not include any decrease in income resulting from the manner in which income is calculated pursuant to any amendment to paragraph f of subdivision one of section four hundred sixty-seven-c of the real property tax law or an amendment to subdivision f of section 26-601 of this code made on or after April first, nineteen hundred eighty-seven. For purposes of this subdivision, “adjusted rent” shall mean maximum rent less the amount set forth in a rent increase exemption order/tax abatement certificate.

§ 26-605.1 Effect of reclassification of dwelling units.

Notwithstanding the provisions of this chapter, chapter three or chapter four of this title, when a dwelling unit subject to this chapter is later reclassified by order of the commissioner, the supervising agency or by any other governmental agency supervising such dwelling unit, or by operation of law to a dwelling unit subject to any of the provisions of article II, IV, V or XI of the private housing finance law, regulation under chapter four of this title or the emergency tenant protection act of nineteen seventy-four, or when a dwelling unit subject to regulation under such act, chapter four or chapter three of this title is reclassified by order of the commissioner or the supervising agency or by operation of law to a dwelling unit subject to the provisions of article II, IV, V or XI of the private housing finance law or subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, a head of the household who held or holds a valid rent increase exemption order/tax abatement certificate at the time of the reclassification shall be issued a rent increase exemption order under this chapter or chapter four of this title, as applicable, continuing the previous exemption notwithstanding the reclassification of the dwelling unit.

§ 26-606 Applications for exemption orders/tax abatement certificates; issuance and copies.

The eligible head of the household shall apply annually to the supervising agency for a rent increase exemption order/tax abatement certificate on a form to be prescribed and made available by the supervising agency. The supervising agency shall approve or disapprove applications and, if it approves, shall issue a rent increase exemption order/tax abatement certificate. Copies of such order/certificate shall be issued to the housing company managing the dwelling unit of the eligible head of the household, to the eligible head of the household and to the department of finance.

§ 26-607 Effective dates of exemption orders/tax abatement certificates.

The effective date of a rent increase exemption order/tax abatement certificate shall be the date of the first increase in maximum rent becoming effective after the applicant’s eligibility date, except that in no event shall a rent increase exemption order/tax abatement certificate become effective prior to January first, nineteen hundred seventy-six.

§ 26-608 Credit allowances; penalties for overcharge.

Upon receipt of a copy of a rent increase exemption order/tax abatement certificate, the housing company managing the dwelling unit of the eligible head of the household shall promptly accord to the eligible head of the household covered by such order/certificate the appropriate credit against the monthly maximum rent then and thereafter payable. To the extent the full amount of such credit has not been accorded for any past period since the effective date specified in the order/certificate, the housing company shall credit the total aggregate amount not so credited to the monthly maximum rent next payable or to such subsequent monthly maximum rents, as the supervising agency may authorize. It shall be illegal to collect any amount for which a rent increase exemption order/tax abatement certificate provides credit or to withhold credit for any such amounts already collected, and collection or retention of any such amount for a dwelling unit occupied by such eligible head of the household shall be deemed a rent overcharge, and upon conviction therefor the housing company and its directors and any employee responsible therefor shall be guilty of a misdemeanor, punishable by a fine not to exceed one thousand dollars or imprisonment not to exceed six months, or both.

§ 26-609 Application for tax benefit; credits.

In order to obtain the tax benefits to which it is entitled under this chapter, a housing company must file with the department of finance a sworn application, in such form as such officer may prescribe, for any period in which the housing company has accorded an eligible head of the household an exemption hereunder from the payment of the maximum rent. Subject to prior or subsequent verification thereof, the department of finance shall credit the total amount of such exemptions actually accorded to occupants of dwelling units contained in the property against the real property taxes next payable with respect to the property, on a prospective basis only. The housing company shall attach to such application copies of all rent increase exemption orders/tax abatement certificates issued to eligible heads of the household residing in dwelling units in such real property.

§ 26-610 Excessive exemption; liens.

If a subsequent audit of taxes payable and exemptions recognized pursuant to this chapter discloses that an exemption previously recognized on the basis of a housing company’s verified application is excessive, the amount of tax payable by reason of such disclosure and the statutory penalty thereon, shall be a lien upon the property as of the due date of the tax for which the excessive exemption was claimed, unless after the housing company has filed the tax exemption claims, the supervising agency issues a corrected rent increase exemption order/tax abatement certificate retroactively modifying or revoking the rent increase exemption order/tax abatement certificate based on error in the personal or financial data in the application or based on error in the rent calculation not due to any willful fault of the housing company, in which case the amount of tax payable by reason of the disclosure shall be a lien upon the property as of the date for payment of taxes next following certification of such corrected order by the supervising agency.

§ 26-611 Rules and regulations.

The supervising agency may promulgate such rules and regulations as may be necessary to effectively carry out the provisions of this chapter.

§ 26-612 Violations; penalties.

It shall be illegal, for any person submitting an application for a rent increase exemption pursuant to this section, to make any false statement or willful misrepresentation of fact, and upon conviction thereof such applicant shall be guilty of a misdemeanor, punishable by a fine not to exceed five hundred dollars or imprisonment not to exceed ninety days, or both.

§ 26-613 Application.

This chapter is enacted pursuant to the provisions of section four hundred sixty-seven-c of the real property tax law.

§ 26-614 Certain exemption orders.

Notwithstanding the provisions of this chapter, a tenant who resides in a dwelling unit which becomes subject to this chapter upon the sale by the city of New York of the building in which such dwelling unit is situated may be issued a rent increase exemption order for increases in rent which occurred during ownership of such building by the city of New York provided that such tenant would have been otherwise eligible to receive a rent increase exemption order at the time of such increase but for the fact that such tenant occupied a dwelling unit owned by the city of New York and was therefore not subject to this chapter. Application for such rent increase exemption orders shall be made within one year from the date such building is sold by the city of New York or within one year of the effective date of this provision, whichever is later.

§ 26-615 Certain rent increases attributable to capital assessments and voluntary capital contributions.

Notwithstanding any inconsistent provision of law, whenever a rent increase exemption order/tax abatement certificate is issued to an eligible head of the household residing in a dwelling unit owned by a housing company which is subject to the provisions of article II, IV, V or XI of the private housing finance law entitling such eligible person to an exemption from an increase in maximum rent attributable to a capital assessment or voluntary capital contribution made prior to, on or after the effective date of this section and such person later transfers his shares in such housing company, such person shall be required to pay over to such housing company, or such housing company shall be entitled to deduct from the amount to be paid to such person for the sale of such shares, all amounts covered by such rent increase exemption order/tax abatement certificate which are attributable to such capital assessment or voluntary capital contribution. Such housing company shall not approve the transfer of shares unless it has received the payment required by the preceding sentence or made the deduction therein authorized. Such housing company shall remit such amount to the commissioner of finance within ninety days of the collection thereof. Payments due to the city in accordance with this section shall be deemed a tax lien and may be enforced in any manner authorized for the collection of delinquent taxes on real property.

§ 26-616 Notification of termination of certain mortgage.

The housing company which owns any dwelling subject to a mortgage insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, shall notify the supervising agency of the termination of such mortgage thirty days before such termination.

§ 26-617 Eligibility for persons with disabilities.

To qualify as a person with a disability for the purposes of this section, an individual shall submit to such agency as the mayor shall designate proof (as specified by regulation of such agency as the mayor shall designate) showing that such individual is currently receiving social security disability insurance (SSDI) or supplemental security income (SSI) benefits under the federal social security act or disability pension or disability compensation benefits provided by the United States department of veterans affairs, or was previously eligible by virtue of receiving disability benefits under the supplemental security income program or the social security disability program and is currently receiving medical assistance benefits based on determination of disability as provided in section three hundred sixty-six of the social services law and whose income for the current income tax year, together with the income of all members of such individual’s household, does not exceed fifty thousand dollars beginning July first, two thousand fourteen.

Chapter 8: Cooperative and Condominium Conversions

§ 26-701 Application.

The provisions of this chapter shall apply to conversions from rental to cooperative or condominium status of a building or a group of buildings or a development for which a plan must be filed with the state department of law pursuant to section three hundred fifty-two-eeee of the general business law.

§ 26-702 Definitions.

As used in this chapter the following words shall mean:

  1. “Building” any building, group of buildings or development.
  2. “Total price”

   (1) with respect to cooperative conversions, the number of all shares in the offering multiplied by the last price per share which was offered to tenants in occupancy prior to the effective date of the plan regardless of number of sales made;

   (2) with respect to condominium conversions, the sum of the cost of all units in the offering at the last price which was offered to tenants in occupancy prior to the effective date of the plan regardless of number of sales made.

  1. “Capital replacement” a building-wide replacement of a major component of any of the following systems:

   (1) elevator;

   (2) heating, ventilation and air conditioning;

   (3) plumbing;

   (4) wiring;

   (5) window; or, a major structural replacement to the building; provided, however, that replacements made to cure code violations of record shall not be included.

  1. “Offeror” the offeror, his or her nominees, assignees and successors in interest.

§ 26-703 Establishment of reserve fund.

  1. Within thirty days after the closing of a conversion pursuant to an offering plan the offeror shall establish and transfer to the cooperative corporation or condominium board of managers, a reserve fund to be used exclusively for making capital repairs, replacements and improvements necessary for the health and safety of the residents of such buildings. Such reserve fund shall be exclusive of any other funds required to be reserved under the plan or applicable law or regulation of the state attorney general, except a fund for capital repairs, replacements and improvements substantially similar in purpose to and in an amount not less than the reserve fund mandated by this section. Such reserve fund also shall be exclusive of any working capital fund and shall not be subject to reduction for closing apportionments.
  2. Such fund shall be established in an amount equal to either (i) three per cent of the total price or, (ii) (A) three per cent of the actual sales price of all cooperative shares or condominium units sold by the offeror at the time the plan is declared effective, provided, however, that if such amount is less than one per cent of the total price, then the fund shall be established as a minimum of one per cent of the total price; plus (B) supplemental contributions to be made by the offeror at a rate of three per cent of the actual sales price of cooperative shares or condominium units for each unit or its allocable shares held by the offeror and sold to bona fide purchasers subsequent to the effective date of the plan and within five years of the closing of the conversion pursuant to such plan notwithstanding that the total amount contributed may exceed three per cent of the total price; and provided, further, that if five years from thirty days after the closing of the conversion pursuant to such plan the total contributions by the offeror to the fund are less than three per cent of the total price the offeror shall pay the difference between the amount contributed and three per cent of the total price. Supplemental contributions shall be made within thirty days of each sale.
  3. The contributions required pursuant to this section may be made earlier or in an amount greater than so provided. An offeror may claim and receive credit against the mandatory initial contribution to the reserve fund for the actual cost of capital replacements which he or she has begun after the plan is submitted for filing to the state department of law and before the plan is declared effective; provided, however, that any such replacements must be set forth in the plan together with their actual or estimated costs and further provided, that such credit shall not exceed the lesser of the actual cost of the capital replacements or one per cent of the total price.
  4. Any building, construction of which was completed within three years prior to the closing of a conversion pursuant to an offering plan, shall be exempt from the requirements of this section.

§ 26-704 Report on status of reserve fund.

The cooperative corporation or condominium board of managers shall report to shareholders and unit owners on a semi-annual basis with respect to all deposits into and withdrawals from the reserve fund mandated by section 26-703 of this chapter.

§ 26-705 Posting of violations.

The offeror, not later than the thirtieth day following the acceptance of a plan for filing by the state department of law pursuant to section three hundred fifty-two-eeee of the general business law and until the closing of the conversion pursuant to such plan, shall post and maintain in a prominent place, accessible to all tenants in each building covered by the plan, a listing of all violations of record against such buildings as determined by the department of buildings and the department of housing preservation and development. All newly issued violations shall be posted within fortyeight hours of their issuance and maintained as described above. The offeror may satisfy the requirements of this section by designating an agent on the premises with whom such listing shall be made available for inspection by the tenants.

§ 26-706 Report on condition of premises.

Where, pursuant to law or regulation of the state attorney general, an offeror is required to file a report with the state department of law describing the condition of the physical aspects of the premises to be converted and the surrounding neighborhood, a copy of such report shall be submitted simultaneously to the commissioner of buildings.

§ 26-707 No waiver of rights.

Any provision purporting to waive the provisions of this chapter in any contract to purchase or agreement between an offeror and the cooperative corporation or the condominium board of managers pursuant to a conversion plan shall be void as against public policy.

§ 26-708 Criminal and civil penalties; enforcement.

  1. Except as otherwise provided in subdivision b of this section, any person who knowingly violates or assists in the violation of any section of this chapter shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than one hundred nor more than one thousand dollars. Except as otherwise provided in subdivision b of this section, any person who violates or assists in the violation of any section of this chapter shall be subject to a civil penalty of one hundred dollars per day per unit for each day that a building is not in compliance with the provisions of such sections; provided, however, that such civil penalty shall not exceed one thousand dollars per unit.
  2. Any person who knowingly violates or assists in the violation of section 26-703 of this chapter shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not more than two times the amount required to be reserved by section 26-703 of this chapter which was not so reserved. Any person who violates or assists in the violation of section 26-703 of this chapter shall also be subject to a civil penalty of one thousand dollars per day for each day that the reserve fund required by section 26-703 of this chapter is not established; provided, however, that such civil penalty shall not exceed the amount required to be reserved pursuant to section 26-703 of this chapter.
  3. In addition, any other action or proceeding in any court of competent jurisdiction that may be appropriate or necessary for the enforcement of the provisions of this chapter may be brought in the name of the city, including actions to secure permanent injunctions enjoining any acts or practices which constitute a violation of any provision of this chapter, mandating compliance with the provisions of this chapter or for such other relief as may be appropriate. In any such action or proceeding the city may apply to any court of competent jurisdiction, or to a judge or justice thereof, for a temporary restraining order or preliminary injunction enjoining and restraining all persons from violating any provision of this chapter, mandating compliance with the provisions of this chapter, or for such other relief as may be appropriate, until the hearing and determination of such action or proceeding and the entry of final judgment or order therein. The court, or judge or justice thereof, to whom such application is made, is hereby authorized forthwith to make any or all of the orders above specified, as may be required in such application, with or without notice, and to make such other or further orders or directions as may be necessary to render the same effectual. No undertaking shall be required as a condition of the granting or issuing of such order, or by reason thereof.
  4. Nothing contained in this section shall impair any rights, remedies or causes of action accrued or accruing to purchasers of cooperative shares or condominium units.
  5. The department of housing preservation and development is empowered to enforce the provisions of this chapter.

Chapter 9: Right of First Refusal and First Opportunity To Purchase

§ 26-801 Definitions.

For the purposes of this section, the following definitions shall apply:

  1. “Affordable” shall mean that rental expenses for dwelling units do not exceed thirty percent of the annual gross household income of the existing tenants, and/or where rental expenses do not exceed the rent levels allowable pursuant to the rent restrictions applicable to such dwelling units prior to conversion, provided however that dwelling units which become vacant in assisted rental housing should not be rented to households whose income exceeds eighty percent of the New York metropolitan area median income as determined by the United States department of housing and urban development.
  2. “Appraised value” shall mean the value as determined by a majority vote of an advisory panel of three appraisers who shall perform such appraisal in accordance with the American Arbitration Association’s rules for the real estate industry.
  3. “Assisted rental housing” shall mean a privately-owned multiple dwelling or group of multiple dwelling units managed together under the same ownership in which the majority of dwelling units therein are subject to federal, state or city income eligibility restrictions and in which rents for such dwelling units are controlled, regulated or assisted by a federal, state or city agency pursuant to a regulatory agreement or rental assistance agreement designed to make such dwelling units affordable on a project-based basis. Assisted rental housing programs shall include:

   (1) any program created, administered, or supervised by the city or state under article II or article IV of the private housing finance law, but shall not include any multiple dwelling owned or operated by a company organized under article II or article IV of the private housing finance law that was occupied prior to January 1, 1974.

   (2) any program providing project-based assistance under section eight of the United States housing act of 1937, as it may be amended from time to time; and

   (3) housing programs governed by sections 202, 207, 221, 232, 236, or 811 of the national housing act, (12 U.S.C. § 1701, et seq.), as they may be amended from time to time;

  1. “Bona fide purchaser” shall mean a person or entity that has tendered a bona fide offer to purchase the assisted rental housing.
  2. “Bona fide offer to purchase” shall mean a good faith and without fraud offer, made in writing and approved by the department that is tendered by a bona fide purchaser no later than one hundred and twenty days after an appraisal performed pursuant to section 26-804 of this chapter, and that is non-binding on the owner with intent to convert.
  3. “Conversion” or “convert” shall mean the transfer of title, leasing, intention to sell or lease, mortgage pre-payment, withdrawal from an assisted housing program, decision not to extend or renew participation in the program or any other action taken by the owner that would result in the termination of participation by the owner in the assisted rental housing program.
  4. “Household” shall mean all lawful occupants of any dwelling unit as defined in section 27-2004 of this code.
  5. “Household income” shall mean, for any household, the sum of the amount reported separately in the most recent individual or joint tax return for wage or salary income, net self-employed income, interest, dividends, rent received, royalties, social security or railroad retirement benefits or disability benefits and all other income for each member of the household reported on a tax return.
  6. “Department” shall mean the department of housing preservation and development or successor agency.
  7. “Financial assistance” shall mean any benefits received as a result of an assisted rental housing program that act to maintain affordable rents in the assisted rental housing.
  8. “First opportunity to purchase” shall mean the opportunity by a tenant association, or if applicable, a qualified entity, to purchase in good faith and without fraud the assisted rental housing at or below its appraised value before such assisted rental housing becomes subject to conversion.
  9. “Notice” shall mean a written communication addressed to a tenant association, or if no tenant association exists, to each tenant, or if applicable, to a qualified entity, by means of first class and registered mail, or personal delivery upon a tenant association, or if no tenant association exists, upon each tenant, or if applicable, a qualified entity. Each such notice shall be deemed to have been given upon the deposit of such first class and registered mail in the custody of the United States postal service or upon receipt of personal delivery, and by posting of such notice in the common areas of the assisted rental housing.
  10. “Owner” shall mean any person or entity, or combination of such persons or entities, or any agent of such persons or entities, that has a controlling interest in assisted rental housing that is subject to conversion.
  11. “Qualified entity” shall mean any individual, partnership, limited liability partnership, limited liability corporation, not-for-profit corporation or business corporation, or other entity authorized to do business in New York state and experienced in the management of affordable housing, designated by the tenants residing in at least sixty percent of the occupied dwelling units within the same assisted rental housing to act on its behalf pursuant to section 26-809 of this chapter and approved in writing by the department and which obligates itself and any successors in interest to assume the ongoing responsibility of continuing maintenance and operation of the assisted rental housing as affordable for the duration of the housing’s useful life and in accordance with the purposes of this chapter.
  12. “Right of first refusal” shall mean the right of a tenant association, or if applicable, a qualified entity, to submit a good faith and without fraud offer, in writing to the owner to purchase the higher of the assisted rental housing’s appraised value or the identical price, terms and conditions offered by a bona fide purchaser as approved by the department.
  13. “Tenant” shall mean a lawful occupant who resides within a dwelling unit within such assisted rental housing pursuant to law or a lease recognized by either the owner of such assisted rental housing, the department or a court of competent jurisdiction.
  14. “Tenant association” shall mean an association, whether incorporated or not, for which written consent to forming a tenant association has been given by tenants representing at least sixty percent of the occupied dwelling units within the same assisted rental housing, and which association notifies or has notified the owner of the assisted rental housing and the department of its existence or establishment and has provided to such owner and the department the names and addresses of at least two of the officers or representatives of such association. Where more than one group of tenants in the same assisted rental housing claims to be the tenant association for such assisted rental housing, the department shall determine which group, if any, is the tenant association for the purposes of this chapter in the same manner as the department certifies a tenant association for the purposes of article II of the private housing finance law.

§ 26-802 Notification of impending conversion.

(a) Notice shall be provided by the owner to the tenant association, or if no tenant association exists, to each tenant, and to the department of the intention of the owner to take any action that will result in the conversion of the assisted rental housing.
  1. Such notice shall be provided no less than twelve months prior to the taking of such action by the owner. Such notice shall include the following information:

   (1) The name and address of each owner of the assisted rental housing. For any owner that is a corporation, the notice shall contain the names and addresses of the officers and directors of the corporation and of any person directly or indirectly holding more than ten percent of any class of the outstanding stock of the corporation. For any owner that is a partnership or joint venture, the notice shall contain the name and address of each individual who is a principal or exercises control of such entities.

   (2) The address and/or addresses and the name and/or names of the assisted rental housing and the type of program or programs to which the assisted rental housing is subject;

   (3) The nature of the action that the owner intends to take that will result in a conversion;

   (4) The date on which such action resulting in the conversion is anticipated to take place;

   (5) The provision of law, rule or regulation pursuant to which such action is authorized;

   (6) The total number and type of dwelling units subject to a conversion;

   (7) The current rent schedule for the dwelling units along with an estimation of the rent increases anticipated upon conversion;

   (8) The income and expense report for the twelve-month period prior to the notice including capital improvements, real property taxes and other municipal charges;

   (9) The amount of the outstanding mortgage as of the date of the notice;

   (10) The two most recent inspection reports from the real estate assessment center of the United States department of housing and urban development, for the assisted rental housing or group of multiple dwelling units operated together under the same ownership for which such inspection reports are required, or, the reports of the two most recent comprehensive building-wide inspection reports that may have been conducted by the department or by the New York state division of housing and community renewal;

   (11) A statement of notice in a manner approved by the department which advises a tenant association, or if no tenant association exists, advises each tenant, of the first opportunity to purchase as required by section 26-806 of this chapter, or of the right of first refusal, as required by section 26-805 of this chapter;

   (12) Such other information the department may require.

  1. During the twelve-month notification period provided for in subdivision b of this section the owner may not sell or contract to sell the assisted rental housing, but may engage in such discussions with other interested parties.
  2. Notice shall not be required of an owner who intends to maintain the property as assisted rental housing or intends to transfer, lease or refinance a mortgage in order to maintain the property as assisted rental housing.
  3. Where an owner decides not to convert the assisted rental housing program, such owner may withdraw the notice of intention to convert the assisted rental housing program, subject to the terms of any accepted offer to purchase or executed purchase and sale agreement, and to existing statutory and common law remedies. In such event, the owner shall give notice to the tenant association, or if no tenant association exists, to each tenant, or if applicable, to a qualified entity, and to the department. However, should the owner at any time decide to take an action that will result in conversion, the twelve-month notice period of this section as well as all other applicable requirements of this chapter shall be complied with.
  4. Notwithstanding any of the above, if any applicable supervening statute or program has a notice requirement substantially similar to any notice requirement of this section, then the notice requirement under this section shall be that of the supervening statute or program.
  5. Notwithstanding any of the above, if the notices required by this section require more information than is required by any applicable supervening city, state or federal statute or program, then such additional information shall be provided within the time period established by the supervening statute or program.

§ 26-803 Notification of bona fide offer to purchase.

(a) If the owner receives a bona fide offer to purchase and intends to consider, or respond to such bona fide offer to purchase, then notice shall be provided by the owner to a tenant association, or if no tenant association exists, to each tenant, or if applicable, a qualified entity, and the department, no more than fifteen days from the date that such bona fide offer to purchase is delivered to the owner. Such notice shall contain the following information:

   (1) The name and address of the proposed bona fide purchaser; and

   (2) The price and terms and conditions of the offer;

  1. The owner shall not be required to provide notice in accordance with subdivision a of this section if the bona fide purchaser making the offer agrees to maintain the assisted rental housing as affordable. The bona fide purchaser shall be required to inform the department as to how such bona fide purchaser intends to keep the assisted rental housing as affordable.

§ 26-804 Appraisal determination.

(a) The department shall convene an advisory panel, which advisory panel shall determine the appraised value of the assisted rental housing within thirty days of a tenant association's, or if applicable, a qualified entity's notice to the owner and the department pursuant to subdivision a of section 26-805 or subdivision a of section 26-806 of this chapter.
  1. The advisory panel shall consist of one appraiser selected by the owner, one appraiser selected by the tenant association, or if applicable, a qualified entity, and one appraiser to be selected either by mutual agreement between the owner and the tenant association or if applicable, a qualified entity, or by mutual agreement between the appraiser that was selected by the owner and the appraiser selected by the tenant association, or if applicable, a qualified entity, if such condition is deemed acceptable to the owner and the tenants association, or if applicable, a qualified entity, and is agreed upon in writing, except that in the case of where there is no agreement between the owner and the tenant association, or if applicable, a qualified entity, or between the appraiser that was selected by the owner and the appraiser selected by the tenant association, or if applicable, a qualified entity, then the appraiser will be selected by the department. The cost for the appraiser shall be borne by the party responsible for providing such appraiser. However, where the department must select the third appraiser, the cost for such appraiser shall be equally borne by the owner and the tenant association, or if applicable, a qualified entity.
  2. Notice shall be provided by the department to the owner and the tenant association, or if applicable, a qualified entity, fifteen days before the intended date that such advisory panel is to initiate the performance of the appraisal. In the instance when either the owner fails to provide an appraiser within fifteen days of such notice or when the tenant association, or if applicable, a qualified entity, fails to provide an appraiser within fifteen days of such notice then the department shall select the appraiser on behalf of the party or parties that failed to select an appraiser. In such circumstance, the cost for the appraiser selected by the department shall be borne by the party responsible for providing that appraiser.
  3. The department shall promulgate rules for the timely determination of the appraised value and that such rules are to be consistent with the notice requirements mandated under this chapter. The department shall make such appraised value publicly available within fifteen days from the date of such advisory panel’s determination.
  4. In the instance where the owner and the tenant association, or if applicable, a qualified entity, have mutually agreed upon an appraised value for the assisted rental housing prior to the convening of the advisory panel, the owner and the tenant association, or if applicable, a qualified entity, may in writing apply to the department for a waiver from subdivisions a through d of this section. The department shall make a determination upon such application for a waiver within fifteen days from receipt of such application.

§ 26-805 Right of first refusal.

(a) A tenant association, or if applicable, a qualified entity, shall notify the owner and the department in writing of its intent to exercise its right of first refusal within sixty days from receipt of notice from the owner pursuant to subdivision a of section 26-802 of this chapter.
  1. The tenant association, or if applicable, a qualified entity, following notice by the owner in compliance with subdivision a of section 26-802 of this chapter, shall have one hundred twenty days from the date of the notice of the determination of the appraised value to submit its offer to purchase.
  2. The tenant association, or if applicable, a qualified entity, following notice by the owner in compliance with subdivision a of section 26-803 of this chapter, shall have one hundred twenty days from the date of a bona fide offer to purchase to submit its offer to purchase.
  3. If through no fault of a tenant association, or if applicable, a qualified entity, or the owner, the time periods provided for in subdivisions b or c of this section need to be extended, then such time periods may be extended by the department. Should such time period be extended past the notice period provided for in subdivision a of section 26-802 of this chapter, then the provisions of the applicable assisted rental housing program shall remain in full force and effect to the extent permitted by law.
  4. Unless the owner and a tenant association, or if applicable, a qualified entity, otherwise agree to purchase the assisted rental housing below its appraised value, the owner shall sell such assisted rental housing at the appraised value or at the price contained in a bona fide offer to purchase price as approved by the department.
  5. The department shall promulgate rules for the timely completion of all lending program applications, credit reviews and loan closings.
  6. If a tenant association, or if applicable, a qualified entity, does not submit its offer in writing to the owner and the department within the time periods stated in subdivisions b or c of this section following notice by the owner in compliance with subdivision a of section 26-802 of this chapter, then such right will be deemed waived and the owner shall have no further obligations under this section. However, where a tenant association, or if applicable, a qualified entity, has previously submitted a notice in accordance with subdivision a of this section decides not to exercise such right, it may withdraw such notice by giving written notice to that effect to the owner and to the department.

§ 26-806 First opportunity to purchase.

(a) A tenant association, or if applicable, a qualified entity, shall notify the owner and the department in writing of its intent to exercise its right of first opportunity to purchase within sixty days from receipt of notice from the owner pursuant to subdivision a of section 26-802 of this chapter.
  1. The tenant association, or if applicable, a qualified entity, following notice by the owner in compliance with subdivision a of section 26-802 of this chapter, shall have one hundred twenty days from the date of the notice of the determination of the appraised value to submit its offer to purchase.
  2. If through no fault of a tenant association, or if applicable, a qualified entity, or the owner, the time period provided for in subdivision b of this section needs to be extended, then such time period may be extended by the department. Should such time period be extended past the notice period provided for in subdivision a of section 26-802 of this chapter, then the provisions of the applicable assisted rental housing program shall remain in full force and effect to the extent permitted by law.
  3. Except where the owner and a tenant association, or if applicable, a qualified entity, agree to a purchase price of the assisted rental housing at an amount below the appraised value, any offer made pursuant to this section shall be accepted by the owner.
  4. If a tenant association, or if applicable, a qualified entity, does not submit its offer in writing to the owner and the department within the time periods stated in subdivision b of this section following notice by the owner in compliance with subdivision a of section 26-802 of this chapter, then such right will be deemed waived and the owner shall have no further obligations under this section. However, where a tenant association, or if applicable, a qualified entity, has previously submitted a notice in accordance with subdivision a of this section decides not to exercise such right, it may withdraw such notice by giving written notice to that effect to the owner and to the department.

§ 26-807 Prior notification.

Notwithstanding any other provision of this chapter, where an owner has given notice prior to the effective date of this chapter and the intent of such notice is to initiate a procedure to withdraw the assisted rental housing from a program set forth in subdivision c of section 26-801 of this chapter, and such notice was properly given in accordance with any other applicable provision of law and more than forty-five days remain prior to the expiration of the time period applicable to such notice, a tenant association, or if applicable, a qualified entity, may complete any action authorized by sections 26-804, 26-805 and 26-806 of this chapter at any time prior to the expiration of such time period.

§ 26-808 Long term affordability.

A tenant association, or if applicable, a qualified entity, including all successors in interest, which chooses to exercise the rights provided for in section 26-805 or section 26-806 of this chapter will be obligated to maintain the assisted rental housing as affordable.

§ 26-809 Right of transfer.

(a) During the notice period provided for in section 26-802 of this chapter, the tenants, by written consent of the tenants residing in at least sixty percent of the occupied dwelling units within the same assisted rental housing, may transfer the rights established by section 26-805 and section 26-806 of this chapter to a qualified entity.
  1. Notice of such transfer shall be provided to the owner and the department in writing within sixty days from receipt of notice from the owner pursuant to section 26-802 of this chapter.

§ 26-810 Conversion of property.

Notwithstanding the provisions of section 26-805 and section 26-806 of this chapter, when a conversion occurs, an owner or bona fide purchaser shall allow the current tenant or tenants to remain in their respective dwelling units for the longer of six months from the effective date of the conversion or until the tenant’s lease expires, and at the same terms and conditions as before such conversion. Such owner or purchaser may, with the agreement of the tenant or tenants, relocate such tenant or tenants to comparable units with comparable rents in accordance with procedures to be established by the rules of the department.

§ 26-811 Penalty.

An owner found to have violated any provision of this chapter shall, in addition to any other monetary and/or equitable damages for which the owner may be liable, be liable for a civil penalty of five thousand dollars per month per dwelling unit in the assisted rental housing, and shall also pay to a tenant association, or if no tenant association exists, each tenant, or if applicable, a qualified entity, fees and costs incurred in bringing an enforcement proceeding. The total civil penalties may not exceed one hundred thousand dollars per dwelling unit. Nothing in this section shall be interpreted as prohibiting the tenant association, or if no tenant association exists, the tenants, or if applicable, a qualified entity, from seeking injunctive relief against a non-compliant owner. Such proceeding shall be brought in a court of competent jurisdiction.

§ 26-812 Exclusions.

(a) Nothing in this chapter shall affect any existing agreement between a tenant association and an owner regarding the management and operation of the assisted rental housing or the transfer of the assisted rental housing to a tenant association or similar organization in effect on the effective date of this chapter, except that any renewal, modification or amendment of such agreement occurring on or after the effective date of this local law shall be subject to the provisions of this chapter.
  1. Nothing in this chapter shall affect any existing agreement between an owner and one or more governmental entities relating to the management and operation of a multiple dwelling that is not otherwise subject to the private housing finance law or to federal law.
  2. Nothing in this chapter shall affect an owner or purchaser who wants to refinance in order to maintain participation in an assisted rental housing program.
  3. The provisions of this chapter shall not apply to a purchase by a governmental entity implementing its powers of eminent domain; a judicially supervised sale or transfer of property; any bankruptcy proceedings; or operation of law.
  4. The provisions of this chapter shall not apply where a notice as described in section 26-807 of this chapter was properly given in accordance with any other applicable provision of law and forty-five or fewer days remain prior to the expiration of such applicable notice period.

§ 26-813 Judicial review.

Any person aggrieved by an appraisal determination made pursuant to section 26-804 of this chapter, or by the failure of the department to approve a bona fide offer to purchase, may, within thirty days of the appraisal determination or action by the department, seek judicial review pursuant to article seventy-eight of the civil practice law and rules in the supreme court for the county in which the assisted rental housing is located. In the event that a court may find that the appraisal or action by the department constitutes the equivalent of a taking without just compensation, the court shall require that a new appraisal or determination be made. The time periods set forth in this chapter shall be tolled during the pendency of such a proceeding and until a new appraisal or determination, if needed, is made.

Chapter 11: Housing Information Guide for Tenants and Owners

§ 26-1101 Definitions.

For purposes of this chapter, the following terms are defined as follows:

“Department” means the department of housing preservation and development.

“Dwelling unit” means a dwelling unit as defined in paragraph thirteen of subdivision a of section 27-2004 of the code.

“Multiple dwelling” means a dwelling as defined in paragraph seven of subdivision a of section 27-2004 of the code.

“Owner” means an owner as defined in paragraph forty-five of subdivision a of section 27-2004 of the code.

“Tenant” means any lawful occupant of a dwelling unit in a multiple dwelling.

§ 26-1102 Housing information guide for tenants and owners.

  1. The department shall maintain a housing information guide for tenants and owners in English, Spanish and, in the discretion of the department, other languages. Such guide shall be available on the department’s website and shall be available in printed form upon request.
  2. The guide maintained pursuant to this section shall include, but not be limited to, information about:

   (1) owners’ responsibilities with respect to eviction, heat and hot water, pest management, repairs and maintenance, tenant organizations, rent-regulated leases, rental assistance for elderly or disabled tenants, and housing discrimination;

   (2) tenants’ responsibilities with respect to responding to required notices, allowing access for inspections and repairs, and not causing violations;

   (3) the availability of free and low-cost legal services; and

   (4) other topics deemed relevant by the department.

§ 26-1103 Notice of housing information guide for tenants and owners.

  1. Posting required. Every owner of a multiple dwelling shall post a notice in English and Spanish regarding the availability of the housing information guide for tenants and owners maintained pursuant to section 26-1102 of this chapter. Such notice shall be posted in a conspicuous place within view of the area in the multiple dwelling to which mail is delivered.
  2. Upon request by a tenant occupying a dwelling unit in a multiple dwelling, the owner of such multiple dwelling shall make best efforts to provide the notice required by subdivision a in a language other than English or Spanish.
  3. The notice required by subdivision a of this section shall, at a minimum, indicate that the guide maintained pursuant to section 26-1102 of this chapter includes information about:

   (1) owners’ responsibilities with respect to eviction, heat and hot water, pest management, repairs and maintenance, tenant organizations, rent-regulated leases, rental assistance for elderly or disabled tenants, and housing discrimination;

   (2) topics related to tenants’ responsibilities; and

   (3) the availability of free and low-cost legal services.

  1. Contents of posted notice. The department shall determine the form of the notice required pursuant to subdivision a of this section.

§ 26-1104 Violations and penalties.

Any owner who violates the provisions of subdivision a of section 26-1103 of this chapter shall be liable for a civil penalty of two hundred fifty dollars. For purposes of this section, each multiple dwelling in which an owner fails to post the notice required pursuant to subdivision a of section 26-1103 of this chapter shall be deemed a separate violation.

Chapter 10: Housing Development Project Reporting Requirements

§ 26-901 Definitions.

For the purposes of this chapter only, the following terms shall be defined as follows:

  1. “City financial assistance” includes any loans, grants, tax credits, tax exemptions, tax abatements, subsidies, mortgages, debt forgiveness, land conveyances for less than appraised value, land value or other thing of value allocated, conveyed or expended by the city.
  2. “Construction condition” means:

   (1) a violation of the New York city construction codes issued to a housing development project, a developer or a covered contractor of such housing development project, during the project work or within a five-year period following the completion of such project;

   (2) a complaint related to the construction quality of a housing development project received by the department during the project work or within a five-year period following the completion of such project;

   (3) a determination by the department, during the project work or within a five-year period following completion of such project, that the construction quality of a housing development project does not comply with applicable law or does not conform to customary standards for construction in the city of New York.

  1. “Contractor” means an individual, sole proprietorship, partnership, joint venture, corporation or other entity that enters into a contract or other agreement with or is otherwise engaged by a developer or the department to perform project work.
  2. “Covered contractor” means a contractor or subcontractor whose annual gross revenue for the immediately preceding tax year is not less than two million five hundred thousand dollars, calculated in accordance with 29 CFR § 779.266; provided, however that where an entity is a principal owner of, serves as principal officer of, conducts or participates directly or indirectly in the conduct of the affairs of such contractor or subcontractor and any other contractor or subcontractor, the annual gross revenue for the immediately preceding tax year for each such contractor or subcontractor shall be aggregated and, if such aggregated value is not less than two million five hundred thousand dollars, each such contractor or subcontractor shall be a covered contractor.
  3. “Department” means the department of housing preservation and development.
  4. “Developer” means an individual, sole proprietorship, partnership, joint venture, corporation or other entity that receives city financial assistance for a housing development project.
  5. “Disqualified list” means a list that identifies entities that are precluded by the department from being selected as developers where “disqualified” shall mean debarred, suspended or otherwise prohibited for any length of time. Such term shall also include a list of entities that are ineligible to be included on a list of prequalified contractors or subcontractors.
  6. “Housing development project” means construction, rehabilitation or alteration of any residential building, residential facility or residential structure by a developer (1) which creates or preserves at least one dwelling unit; (2) which is funded in whole or in part by city financial assistance other than non-discretionary tax abatements or benefits approved or administered in accordance with sections 421-a or 489 of the New York state real property tax law or other similar programs and (3) where the developer of such project was not selected more than five years prior to the effective date of this chapter. The term “housing development project” shall not include emergency repairs performed by or on behalf of the department pursuant to section 27-2125 of this code, work performed by or on behalf of the department pursuant to section 27-2153 of this code, demolition work performed by or on behalf of the department pursuant to articles two hundred fifteen or two hundred sixteen of chapter two of title twenty-eight of this code, or work funded by the department pursuant to article seven-a of the New York state real property actions and proceedings law.
  7. “List identifier” means a description of the purpose for which a disqualified list or prequalified list is used by the department that shall include the types of housing development projects for which the list is used.
  8. “Prequalified list” means a list that identifies entities that are prequalified to be selected as developers and that was compiled, modified or used by the department to select developers within the immediately preceding five-year period; provided, however that the term “prequalified list” shall also include a list of entities that the department compiles and makes available to developers to assist in the selection of contractors and subcontractors to perform project work.
  9. “Principal officer” means an individual who serves as or performs the functions of chief executive officer, chief financial officer or chief operating officer of an entity.
  10. “Principal owner” means an individual, partnership, joint venture, corporation or other entity which holds a ten percent or greater ownership interest in an entity or holds an ownership interest as a general partner, managing partner or other position conducting or participating directly in the conduct of the affairs of an entity. The term “principal owner” shall not include a limited partner of a limited partnership or an equity investor in a limited liability company or a limited liability partnership where such equity investor does not conduct or participate directly in the conduct of the affairs of the limited liability company or limited liability partnership.
  11. “Project identifier” means a description of a housing development project sufficient to identify such project.
  12. “Project work” means construction, rehabilitation, alteration or demolition work performed in connection with a housing development project. Such term shall not include professional services including architectural, engineering, legal or accounting services or administrative, clerical or other similar office support services, or individuals solely engaged in managing, directing or supervising project work.
  13. “Subcontractor” means an individual, sole proprietorship, partnership, joint venture, corporation or other entity that enters into a contract or other agreement with or is otherwise engaged by a contractor, the department or other entity to perform project work.

§ 26-902 Reporting on prequalified lists and disqualified lists.

  1. For each prequalified list, the department shall make available on its website the list identifier and the criteria used by the department to determine whether an entity qualifies for such list.
  2. For each disqualified list, the department shall make available on its website the list identifier, the name and address of each entity on such list and the name and title of each principal officer and principal owner of such entity and the criteria used by the department to determine whether an entity is disqualified.

§ 26-903 Reporting on housing development projects.

  1. For each housing development project, the developer shall provide to the department, and the department shall make available on its website the following information in a non-proprietary format that permits automated processing:

   (1) the project identifier;

   (2) the program name as identified by the department and the list identifiers of all prequalified lists used in connection with such program;

   (3) the address; block; lot number; stories; square footage of the building at its base; the number of proposed dwelling units including the number of bedrooms, disaggregated by income limits and all initial legal and actual rents; and the number of proposed commercial units;

   (4) the source, type and value of all city financial assistance and other financial assistance provided by the city, disaggregated by source and type;

   (5) the anticipated completion date of such project;

   (6) for the developer, contractors and subcontractors for such project:

      (i) the name and address;

      (ii) the name and title of each principal officer and principal owner of such developer, contractor or subcontractor and

      (iii) when applicable, whether the wage information described by subdivision a of section 26-904 of this chapter has been provided to the department for such developer, contractor or subcontractor;

   (7) whether the developer was prequalified at the time of selection;

   (8) the method used to select the developer including, but not limited to, direct negotiation, request for proposals, competitive bidding, public bidding, auction, selection by entities other than the department, and application;

   (9) the criteria used to evaluate potential developers and to select the developer;

   (10) whether the developer or contractor executed any legal documents subjecting any of the project work to section 220 of the New York state labor law;

   (11) whether the developer or contractor executed any legal documents subjecting any of the project work to subchapter IV of chapter thirty-one of part A of subtitle II of Title 40 of the United States Code or any applicable regulations or rules;

   (12) To the extent known to the department, based on information reported to the department by the developer that the department reasonably believes to be correct and complete, a description of the final outcome of any judicial actions or proceedings, including any final judgment rendered or settlement, with respect to section 220 of the New York state labor law or subchapter IV of chapter thirty-one of part A of subtitle II of Title 40 of the United States Code or any applicable regulations or rules, within the five-year period immediately preceding developer selection by the department, against the developer, the current principal owner or principal officer thereof, or the former principal owner or principal officer thereof if such person held such position or status within the five-year period immediately preceding developer selection by the department;

   (13) the completion date of the project; and

   (14) the total number of construction conditions and for each such condition, the nature of the condition and a description of any remedial actions taken, ordered or requested with respect to such condition.

  1. For housing development projects where the developer was selected after the effective date of this chapter, the department shall update the information required by subdivision a of this section every six months until completion of such project except that the information required by paragraph fourteen shall be updated every six months until five years after completion of such project.
  2. For housing development projects where the developer was selected prior to the effective date of this chapter, the department shall make available the information required by subdivision a of this section no later than January 1, 2014 and shall update such information every six months thereafter until completion of such project except that:

   (1) the information required by paragraph six for subcontractors shall be limited to subcontractors that entered into a contract or other agreement with or were otherwise engaged by a contractor or the department; and

   (2) the information required by paragraph fourteen shall be updated every six months until five years after completion of such project.

  1. No later than October 31, 2018, and by October 31 in each year thereafter, the department shall submit to the mayor and, by electronic mail, the council, and shall publish online, a report on housing development projects. Such report shall include, at a minimum, the following information for each housing development project; provided that such report need not include any housing development project that was completed more than five years before the date of such report or where the developer was selected before the effective date of the local law that added this subdivision:

   (1) the project identifier;

   (2) the address;

   (3) the anticipated completion date or the actual completion date for completed projects;

   (4) the name of the developer and each contractor; and

   (5) the information required by paragraph four of subdivision a of this section.

§ 26-904 Wage information reporting.

For all housing development projects where the developer of such project was selected after the effective date of this chapter, each such developer shall report to the department the information listed below at least quarterly:

  1. for each individual employed or otherwise engaged to perform project work by the developer or any covered contractor:

   (1) the individual’s job title, position, or a description of the type of work performed by such person;

   (2) the information described by subdivision three of section 195 of the New York state labor law which includes the name of the individual; the name of the employer; the address and phone number of the employer; the rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or otherwise; gross wages; deductions; allowances, if any, claimed as part of the minimum wage and net wages;

  1. for each contractor or subcontractor that is not a covered contractor, a written certification under oath by a principal officer of such contractor or subcontractor that such contractor or subcontractor is not a covered contractor.

§ 26-905 Ineligibility for inclusion on prequalified lists.

  1. In addition to any other penalty provided by law, any contractor or subcontractor who fails to provide wage reporting information in accordance with section 26-904 of this chapter shall be ineligible to be included on a prequalified list of contractors and subcontractors.
  2. In addition to any other penalty provided by law, any contractor or subcontractor with a history of construction conditions, as determined by the department, shall be ineligible to be included on a prequalified list of contractors and subcontractors.

Chapter 12: Improperly Conditioning Residential Occupancy on Medical Treatment

§ 26-1201 Improperly conditioning residential occupancy on medical treatment.

  1. Definitions. As used in this chapter:

   Dwelling unit. The term “dwelling unit” has the meaning ascribed to such term in the housing maintenance code.

   Medical treatment. The term “medical treatment” means any medical care, whether or not such care is provided by a licensed medical practitioner, including but not limited to any activity intended to further examination, diagnosis, counseling, physical or psychotherapy, preventive care, prescription or administration of medication, prescription or administration of prostheses, surgery, referral to a medical provider, any procedure to cure or abate any injury, illness, physical or mental condition or any treatment for substance abuse addiction.

   Relative. The term “relative” means, with respect to a person, (i) a spouse, domestic partner, parent, grandparent, child, stepchild or stepparent of such person or (ii) any individual who is the direct descendant of the grandparents of such person or of the spouse or domestic partner of such person.

  1. It shall be unlawful for a person to condition occupancy of a dwelling unit or any term, benefit or right of such occupancy upon a lawful occupant seeking, receiving or refraining from submitting to medical treatment unless such person can establish that:

   1. Each such occupant is a relative of such person; or

   2. Such medical treatment is required in connection with one or more of the following programs, provided that such programs are currently licensed or certified by and in good standing with the appropriate government agency: (i) medically managed withdrawal and stabilization services as defined in section 816.4 of title 14 of the New York codes, rules and regulations; (ii) inpatient medically supervised withdrawal and stabilization services as defined in section 816.4 of title 14 of the New York codes, rules and regulations; (iii) chemical dependence residential rehabilitation services for youth established by part 817 of title 14 of the New York codes, rules and regulations; (iv) chemical dependence inpatient rehabilitation services established by part 818 of title 14 of the New York codes, rules and regulations; (v) intensive residential rehabilitation services established by section 819.8 of title 14 of the New York codes, rules and regulations; (vi) adult-care facilities as defined in section 485.2 of title 18 of the New York codes, rules and regulations; (vii) enriched housing programs as defined in section 488.2 of title 18 of the New York codes, rules and regulations; (ix) assisted living programs as defined in section 494.2 of title 18 of the New York codes, rules and regulations; (x) residential treatment facilities for children and youth established by part 584 of title 14 of the New York codes, rules and regulations; (xi) crisis residences as defined in section 589.4 of title 14 of the New York codes, rules and regulations; (xii) hospitals, nursing homes, and residential health care facilities as defined in section 2801 of the public health law; and (xiii) any other program regulated by state or federal law or rule that affirmatively permits conditioning occupancy, or any term, benefit or right thereof, upon seeking, receiving, or refraining from submitting to medical treatment.

§ 26-1202 Private right of action.

  1. A lawful occupant of a dwelling unit or a group of such occupants in a building may bring an action alleging a violation of subdivision b of section 26-1201 in any court of competent jurisdiction. If such court finds that a person is in violation of such subdivision, such court shall, in addition to any other relief such court determines to be appropriate:

   1. Award to each such occupant (i) compensatory damages and, in such court’s discretion, punitive damages or (ii) at the election of each occupant, damages of $1,000;

   2. Award to such occupants reasonable attorneys’ fees and court costs; and

   3. Issue an order restraining such person from engaging in further conduct in violation of such subdivision.

  1. Such occupant or occupants shall not be relieved of the obligation to pay rent for which such occupant or occupants are otherwise liable to a person found to be in violation of subdivision b of section 26-1201. Any monetary relief awarded to such occupant or occupants pursuant to subdivision a of this section shall be reduced by any amount of delinquent rent or other sum for which such court finds such occupant or occupants to be liable to such person.
  2. This section does not limit or abrogate any claim or cause of action a person has under common law or by other law or rule. The provisions of this section are in addition to any other remedies that may be provided for under common law or by other law or rule.
  3. Nothing contained in this chapter shall be construed as creating any private right of action against the city or any agency or employee thereof.

Chapter 13: Certification of Certain Rent Payment*

§ 26-1301 Certification of payment.*

(a) Whenever rent is paid by the human resources administration to a landlord on behalf of a tenant who is receiving public assistance, a certification of payment shall be made available to the tenant through an on-line client portal, ACCESS HRA. The certification of payment shall set forth:

   (1) the date the payment was sent;

   (2) the name of the landlord to whom the payment was sent;

   (3) the address to which payment was sent; and

   (4) the amount of payment sent.

  1. At the time of approval of an application for public assistance, the human resource administration office shall provide the applicant for assistance with written notice of his or her right to access and receive certification of rent payments as provided in this section.

Chapter 15: Audits for Compliance with 421-a Tax Exemption Affordability Requirements

§ 26-1501 Definitions.

For the purposes of this chapter:

Affordability requirement. The term “affordability requirement” means any requirement that one or more dwelling units within a building receiving benefits under section 421-a of the real property tax law be occupied by or available for occupancy by individuals or families whose incomes at the time of initial occupancy do not exceed the applicable percentage under such law of the area median income for the primary metropolitan statistical area as determined by the United States department of housing and urban development or its successors from time to time for a family of four, as adjusted for family size.

Department. The term “department” means the department of housing preservation and development.

§ 26-1502 Audits.

The department shall audit no fewer than 20 percent of all buildings that have completed construction and are receiving benefits under section 421-a of the real property tax law annually to determine whether the owners of such buildings are in compliance with all applicable 421-a affordability requirements.

§ 26-1503 Results of audit.

Where an audit performed pursuant to section 26-1502 reveals that a building owner is not in compliance with the applicable affordability requirements, the department shall take action to bring such building into compliance, which action may include, but need not be limited to, commencing tax exemption revocation proceedings.

Chapter 16: Audits for Compliance with 421-a Tax Exemption Rent Registration Requirements

§ 26-1601 Definitions.

For the purposes of this chapter:

Department. The term “department” means the department of housing preservation and development.

Rent registration requirement. The term “rent registration requirement” means any requirement that one or more dwelling units within a building receiving benefits under section 421-a of the real property tax law be fully subject to rent stabilization for a prescribed period, including, but not limited to, the requirement that such units be registered as rent stabilized with the state division of housing and community renewal.

Rent Stabilization. The term “rent stabilization” means, collectively, the rent stabilization law of 1969, the rent stabilization code, and the emergency tenant protection act of 1974, together with any successor statutes or regulations addressing substantially the same matter.

§ 26-1602 Audits.

The department shall audit no fewer than 20 percent of all buildings that have completed construction and are receiving benefits under section 421-a of the real property tax law annually to determine whether the owners of such buildings are in compliance with all applicable rent registration requirements.

§ 26-1603 Results of audit.

Where an audit performed pursuant to section 26-1602 reveals that a building owner is not in compliance with the applicable rent registration requirements, the department shall take action to bring such building into compliance, which action may include, but need but need not be limited to, commencing tax exemption revocation proceedings.

Chapter 17: Periodic Reports on Inclusionary Housing Programs

§ 26-1701 Definitions.

  1. Unless otherwise indicated, the following terms, as used in this chapter, shall have the meanings ascribed to such terms by the New York city zoning resolution: administering agent; affordable floor area; affordable housing fund; affordable housing unit; compensated development; dwelling unit; generating site; inclusionary housing designated area; income band; MIH development; MIH site and zoning lot.
  2. As used in this chapter, the term “department” means the department of housing preservation and development.

§ 26-1702 Annual report.

No later than September 1 of each year, the department, in consultation with the department of buildings and the department of city planning, shall publish an interactive map on the department’s website and shall make the data used to compile such map publicly available in a form that permits automated processing and downloading. Such map shall indicate or provide a link to the following information for each zoning lot that contains a generating site, a compensated development, an MIH development or an MIH site:

  1. Whether such lot contains a generating site, a compensated development, an MIH development or an MIH site;
  2. For each generating site, whether such site is located in a R10 district or within an inclusionary housing designated area;
  3. The address, block and lot number of such lot;
  4. The source and type of all financial assistance, including but not limited to grants, loans, subsidies, tax credits and tax exemptions or abatements, provided by any federal, state or local agency or instrumentality for the purpose of promoting the creation, preservation or rehabilitation of affordable floor area;
  5. The number of affordable housing units located at or provided in connection with such lot, disaggregated by income band;
  6. The administering agent for affordable housing units located at or provided in connection with such lot; and
  7. If such lot contains a compensated development or an MIH development, the address, block and lot number of the generating site or MIH site for such lot.

§ 26-1703 Reporting on affordable housing fund.

On or before September 30, 2018, and annually thereafter, the department shall publish on the department’s website a report on contributions to and expenditures from the affordable housing fund. The information in such report shall be indexed by borough and community district and shall include the total amount of money in such fund available for exclusive use in each community district and for use in each borough without regard to community district. Such report shall include, at a minimum, the following information about each zoning lot for which a contribution is made to such fund: (i) the name of the owner of such lot; (ii) the address, block and lot number; (iii) the total number of dwelling units located at such lot; (iv) the amount of affordable floor area that would otherwise be required at such lot in lieu of such contribution pursuant to section 23-154 of the New York city zoning resolution; and (v) the total amount of contributions made in connection with such lot.

Chapter 19: City-Owned Vacant Property That May Be Suitable for the Development of Affordable Housing

§ 26-1901 City-owned vacant property under the jurisdiction of the department of housing preservation and development that may be suitable for the development of affordable housing.

By no later than November 1, 2018, and by November 1 of each year thereafter, the department of housing preservation and development shall, with the cooperation of all other appropriate agencies, report to the mayor and the speaker of the council the following information disaggregated by council district: a report of vacant buildings or lots under the jurisdiction of the department categorized according to the potential development or feasibility status of such buildings or lots as affordable housing.

Chapter 18: Housing Portal

§ 26-1801 Definitions.

As used in this chapter:

Affordable unit. The term “affordable unit” means a dwelling unit for which occupancy or initial occupancy is required to be restricted based on the income of the occupant or prospective occupant thereof as a condition of (i) a loan, grant, tax exemption or conveyance of property from the department pursuant to the private housing finance law, other than article viii-b of such law, or the general municipal law, (ii) a tax exemption pursuant to section 420-c, 421-a or 489 of the real property tax law or (iii) generating a floor area bonus for the provision of affordable inclusionary housing or providing mandatory inclusionary housing pursuant to the New York city zoning resolution, provided that such dwelling unit is not subject to federal or state requirements the department determines would be inconsistent with the provisions of this chapter and not filled by direct referral by a governmental agency or instrumentality, and provided further that such dwelling unit satisfies the additional conditions of paragraph 1 and 2:

   1. Before July 1, 2021, such unit satisfies the conditions of subparagraph (a) or, on or after such date, such unit satisfies the conditions of subparagraph (a) or subparagraph (b):

      (a) The issuance or renewal of such loan, grant or tax exemption, conveyance of such property or generation of such floor area bonus or effective date of such mandatory inclusionary housing requirement occurs or is executed or renewed, as determined by the department, on or after January 1, 2018.

      (b) For the purposes of a requirement imposed pursuant to this chapter, such unit is deemed to have satisfied the conditions of this paragraph unless such unit is subject to a regulatory agreement with the department, such agreement was executed before January 1, 2018 and has not been thereafter renewed and the department determines that such agreement is inconsistent with such requirement; provided that, where the department determines that one or more dwelling units are exempt from one or more requirements imposed pursuant to this chapter because of a regulatory agreement that satisfies the foregoing conditions, the department shall electronically submit each year to the mayor and the speaker of the council a report identifying the number of such units, disaggregated by the affordable housing program to which such agreements apply; and

   2. On or after July 1, 2020, such unit is offered by the owner for lease or sale, or shares of a cooperative corporation that would entitle the shareholder to occupancy of such unit under a proprietary lease are offered by the owner for sale.

Department. The term “department” means the department of housing preservation and development.

Dwelling unit. The term “dwelling unit” means a dwelling unit as defined in the housing maintenance code.

Housing portal. The term “housing portal” means the website created pursuant to section 26-1802.

Information, full unit. The term “full unit information” means, with respect to a dwelling unit, the following information:

   1. Street address of the building containing such unit;

   2. Apartment or unit number of such unit;

   3. Floor area of such unit in square feet, unless such unit satisfies criteria the department establishes to determine whether collection or disclosure of such information would be impracticable;

   4. Number of bedrooms in such unit;

   5. Contact information for the owner of such unit or a person managing such unit on behalf of such owner;

   6. A statement as to whether such unit is occupied;

   7. A statement as to whether such unit is an affordable unit and, if such unit is an affordable unit, (i) a description of each affordable housing program for which such unit is serving as an affordable unit, (ii) the maximum lawful rent for such unit and (iii) the actual rent being charged for such unit, if any; and

   8. Such other information as the department may specify by rule.

Information, limited unit. The term “limited unit information” means, with respect to a dwelling unit, the full unit information for such unit excluding the information described by paragraphs 2, 6, and 7 of the definition of full unit information; and

   *2. Any information described by paragraph 8 of such definition that the department specifies by rule.

  • Editor’s note: as numbered in L.L. 2018/064.

Information, offered unit. The term “offered unit information” means, with respect to a dwelling unit that is being offered for rent or sale or shares of a cooperative corporation that would entitle the shareholder to occupancy of such unit under a proprietary lease that are being offered for sale, the following information:

   1. If such unit is being offered for rent:

      (a) The proposed monthly rent for such unit and, if a temporary reduction in such rent is being offered, including but not limited to a certain number of months in occupancy without rent, the net effective rent for such unit and the period that such net effective rent will apply; and

      (b) The amount and a description of each fee, if any, that occupants of such unit will be required to pay in addition to monthly rent for such unit;

   2. If such unit is being offered for sale or shares of a cooperative corporation that would entitle the shareholder to occupancy of such unit under a proprietary lease are being offered for sale:

      (a) The proposed sale price of such unit or such shares; and

      (b) The estimated annual property tax payments owed for such unit; and

   3. Whether the owner will be responsible for payment of utility services for such unit and for which utility services the owner is responsible;

   4. Unless such unit satisfies criteria the department establishes to determine whether disclosure of the following information would be impracticable, provided that disclosure of such information shall not be deemed impracticable if such unit is (i) in a newly constructed project and (ii) being rented or sold, or shares of a cooperative corporation that would entitle the shareholder to occupancy of such unit under a proprietary lease are being offered for sale, for the first time after such unit becomes or is due to become an affordable unit, in a manner determined by the department: a floor plan for such unit, including measurements for each room in such unit, or a floor plan of a dwelling unit that is located in the building that contains such unit and substantially identical to such unit, together with a statement indicating that such floor plan is of a dwelling unit that is located within such building and that is substantially identical to such unit;

   5. Unless such unit satisfies criteria the department establishes to determine whether disclosure of the following information would be impracticable, provided that disclosure of such information shall not be deemed impracticable if such unit is (i) in a newly constructed project and (ii) being rented or sold, or shares of a cooperative corporation that would entitle the shareholder to occupancy of such unit under a proprietary lease are being offered for sale, for the first time after such unit becomes or is due to become an affordable unit, in a manner determined by the department: photographs of each room in such unit or photographs of each room in a dwelling unit that is located in the building that contains such unit and substantially identical to such unit, together with a statement indicating that such photographs are of a dwelling unit that is located within such building and that is substantially identical to such unit;

   6. The number of floors in the building where such unit is located and a statement as to whether such unit has elevator access;

   7. A description of the pet policy for such unit;

   8. A statement as to whether the following amenities or services will be available to the occupant of such unit and whether such occupant will be required to pay a fee for using such amenities or services:

      (a) Air conditioning;

      (b) A gymnasium or pool located in or on the premises of such building;

      (c) A security guard, watch person or a person with similar responsibilities is routinely in or on the premises of such building;

      (d) A person responsible for accepting deliveries on behalf of such occupant is routinely in or on the premises of such building; and

      (e) An intercommunication device that such occupant can use to allow entry into such unit or such building;

   9. A description of the process to apply for occupancy of such unit, including:

      (a) Whether any deposits, application fees or other charges are required to be paid before an applicant will be considered for occupancy of such unit and a statement as to which, if any, of such deposits, fees or charges are refundable;

      (b) A listing of the qualifications, if any, that an applicant must possess to be considered for occupancy of such unit; and

      (c) At the time such information is submitted, a statement indicating the status of the application process applicable to such unit in a manner established by the department; and

   10. The contact information of a person that may be contacted for additional information relating to such unit.

Listed unit. The term “listed unit” means a dwelling unit for which full unit information and, where applicable, offered unit information has been provided to the department.

§ 26-1802 Housing portal.

  1. By no later than July 1, 2020, the department shall, with the cooperation of all other relevant agencies, create and thereafter maintain a website that:

   1. Allows an owner of an affordable unit or a person acting on behalf of such owner to use such website to offer such unit for rent or sale or to offer shares of a cooperative corporation for sale that would entitle the shareholder to occupancy of such unit under a proprietary lease and accept applications for occupancy of such unit, if such person provides the department with full unit information and offered unit information for such unit in a time and manner established by department rule, provided further that the department shall, by no later than July 1, 2021, electronically submit to the mayor and the speaker of the council recommendations relating to allowing owners of dwelling units other than affordable units to use such website to offer such units for rent or sale and accept applications for occupancy of such units, provided further that nothing in this chapter shall be construed to prohibit (i) offering such units on a building-wide or project-wide basis in a manner established by the department or (ii) offering occupied affordable units which subsequently become vacant in accordance with department requirements; and

   2. Allows a user of such website to:

      (a) View limited unit information and offered unit information for listed units;

      (b) View full unit information for a listed unit if such user verifies, in a manner established by department rule, that such user is a lawful leaseholder or owner of such unit, or is a lawful owner of shares of a cooperative corporation that entitle the shareholder to occupancy of such unit under a proprietary lease, provided that this functionality (i) shall only be required on and after January 1, 2021, but may be implemented earlier than such date, and (ii) may be implemented through a system other than the housing portal;

      (c) View a selection of listed units based on search criteria entered by such user;

      (d) Apply for occupancy of each listed unit for which the owner thereof is accepting applications for occupancy through such website and for which such user appears to be eligible;

      (e) Track the progress of applications submitted by such user through such website, including such user’s position on waiting lists for listed units;

      (f) Automatically populate applications for occupancy of listed units with information provided by such user;

      (g) Receive notifications by electronic mail and text message when a new listed unit is posted that matches criteria specified by such user or posted information changes for a listed unit specified by such user;

      (h) Obtain limited unit information for listed units in a non-proprietary format that permits automated processing; and

      (i) Indicate in such website whether such user is interested in being considered for an affordable unit that subsequently becomes vacant, provided that consideration of users for such units may be carried out in a manner determined by the department, users shall only be considered for such units that satisfy their indicated preferences and such website may require users at regular intervals to review and update their relevant profile information.

  1. Commencing in 2020, the owner of a dwelling unit, excluding dwelling units owned and operated by the New York city housing authority, shall:

   1. If the dwelling unit (i) is an affordable unit or (ii) satisfies the criteria to be deemed an affordable unit except that such unit does not satisfy the additional conditions set forth in paragraph 1 and 2 the definition of affordable unit, annually provide the department with full unit information for such unit in a time and manner established by department rule; and

   2. If the dwelling unit is an affordable unit and is available for rent or sale or if shares of a cooperative corporation are available for sale that would entitle the shareholder to occupancy of such unit under a proprietary lease, provide the department with offered unit information for such unit in a time and manner established by department rule.

  1. An owner of a dwelling unit that satisfies the criteria to be deemed an affordable unit except that such unit does not satisfy the additional conditions set forth in paragraphs 1 and 2 of the definition of affordable unit may make such unit that becomes vacant available through the portal, provided that such owner provides the department with offered unit information for such unit in a time and manner established by department rule. Notwithstanding any provision of this chapter to the contrary, any such unit that is required to be made available through the portal in accordance with department requirements must do so in accordance with this chapter.
  2. The department shall conduct outreach to owners of units described in subdivision c to encourage them to offer their occupied affordable units that subsequently become vacant via the portal.
  3. When information entered by a user in the portal indicates that the user has an income below 80 percent of area median income for such user’s household size, the department shall notify such user with a link to the website for the New York city housing authority.
    1. Nothing in this chapter shall be construed to require the provision to the department or the disclosure of information about any dwelling unit where the department determines that such disclosure could result in an unwarranted invasion of personal privacy of an occupant of or applicant for such unit.

   2. The city does not warranty the completeness, accuracy, content or fitness for any particular purpose of any information made available on the housing portal, nor are any such warranties to be implied or inferred with respect to the information furnished therein.

   3. The city is not liable for any deficiencies in the completeness, accuracy, content or fitness for any particular purpose or use of information provided by any third party and made available on the housing portal.

   4. This chapter shall not be construed to create a private right of action to enforce its provisions. Failure to comply with this chapter shall not result in liability to an agency.

§ 26-1803 Violations.

  1. An owner who fails to provide information with respect to a dwelling unit pursuant to subdivision b of section 26-1802 shall be subject to a civil penalty for each month as follows until such violation is corrected, except that (i) for a violation that occurs within the first six months that such unit is subject to the requirements of such subdivision, the department may, in lieu of imposing such a penalty, provide the owner of such unit with a written warning and (ii) the department may by rule establish alternative civil penalties relating to any dwelling unit in a building that contains four or fewer dwelling units, any dwelling unit in a building that is owner-occupied and contains six or fewer dwelling units or any dwelling unit in a building that is owned by a housing development fund company, as such term is defined in article 11 of the private housing finance law, and contains ten or fewer dwelling units, provided that such alternative civil penalties do not exceed the civil penalties that could be imposed in accordance with paragraphs 1 through 4 and subdivision b:

   1. For the first six-month period, $100 per month;

   2. For the second six-month period, $250 per month;

   3. For the third six month-period, $1,000 per month; and

   4. For the fourth six month-period and for each month thereafter, $2,000 per month.

  1. For a second or subsequent violation of this chapter involving the same dwelling unit, the department may impose and recover a civil penalty that is twice the amount specified in subdivision a, as applicable.
  2. The department may recover civil penalties pursuant to this section in an action in a court of appropriate jurisdiction or in a proceeding before the office of administrative trials and hearings acting pursuant to section 1049-a of the New York city charter.
  3. Upon receipt of a credible complaint alleging that an owner has violated any provision of this chapter with respect to an affordable unit, the department shall investigate and, upon verifying such allegation in a manner to be determined by department rules, such owner shall be subject to a civil penalty in accordance with this section. The department shall by rule establish criteria for determining whether such a complaint is credible.

Chapter 20: Community Land Trust Regulatory Agreements

§ 26-2001 Community land trust regulatory agreements.

  1. For the purposes of this section:

   Eligible community land trust. The term “eligible community land trust” means a corporation that satisfies the following criteria: (i)(a) is incorporated pursuant to article 11 of the private housing finance law and section 402 of the not-for-profit corporation law; (b) the certificate of incorporation of which specifically provides for the provision of housing for persons of low income in the form of a community land trust; (c) has submitted such disclosure statements as shall be required by the supervising agency and received the approval of such supervising agency; (d) lawfully acquired all of its real property in full compliance with such corporation’s certificate of incorporation and any agreements with a governmental entity with respect to such property or such corporation; and (ii) provides in its by-laws that it will (a) acquire parcels of land, primarily for conveyance under long-term ground leases, (b) transfer ownership of any structural improvements located on such leased parcels to the lessees, (c) retain a preemptive option to purchase any such structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to low-income households, and (d) have a board of directors composed of lessees of housing associated with the entity, an adult resident of a particular geographic area specified in the bylaws of the organization and any other category of persons described in the bylaws of the organization.

   Persons of low income. The term “persons of low income” means “persons of low income” as defined in section 2(19) of the private housing finance law.

   Supervising agency. The term “supervising agency” means the department of housing preservation and development.

  1. The supervising agency may enter into a regulatory agreement with an eligible community land trust provided that such trust agrees to such terms and conditions as such agency deems necessary; and (i) is a recipient of a loan or grant from the city of New York; (ii) acquires real property or an interest therein from the city of New York; or (iii) receives a tax exemption approved by the council of the city of New York, upon the recommendation of the supervisory agency. Such regulatory agreement shall also require that the community land trust enter into a 99-year ground lease agreement with the owners of structures or improvements located on land which is subject to the regulatory agreement.

Chapter 21: Affordable Housing Plan Report*

§ 26-2101 Definitions.*

As used in this chapter:

Affordable housing. The term “affordable housing” means a dwelling unit that (i) is required pursuant to a federal, state or local law, rule or program to be affordable for an extremely low income household, a very low income household, a low income household, a moderate income household or a middle income household and (ii) operates pursuant to an agreement administered by the department.

Area median income. The term “area median income” means the Income Limits as defined annually by the U.S. Department of Housing and Urban Development (HUD) for the New York, NY HUD Metro FMR Area (HMFA), as established in Section 3 of the Housing Act of 1937, as amended.

Created. The term “created” means constructed or financed through the development of new buildings or down payment assistance enabling a new homeowner to access affordable housing.

Department. The term “department” means the department of housing preservation and development.

Dwelling unit. The term “dwelling unit” has the meaning ascribed to such term in the housing maintenance code.

Extremely low income household. The term “extremely low income household” means a household that has an income of no more than 30 percent of the area median income, adjusted for the size of the household.

Extremely low income affordable housing (ELI-AH) unit. The term “extremely low income affordable housing (ELI-AH) unit” means affordable housing that is affordable to an extremely low income household.

Low income household. The term “low income household” means a household that has an income of more than 50 percent of the area median income but no more than 80 percent of the area median income, adjusted for the size of the household.

Low income affordable housing (LI-AH) unit. The term “low income affordable housing (LI-AH) unit” means affordable housing that is affordable to a low income household.

Middle income household. The term “middle income household” means a household that has an income of more than 120 percent of the area median income but no more than 165 percent of the area median income, adjusted for the size of the household.

Middle income affordable housing (MIDI-AH) unit. The term “middle income affordable housing (MIDI-AH) unit” means affordable housing that is affordable to a middle income household.

Moderate income household. The term “moderate income household” means a household that has an income of more than 80 percent of the area median income but no more than 120 percent of the area median income, adjusted for the size of the household.

Moderate income affordable housing (MI-AH) unit. The term “moderate income affordable housing (MI-AH) unit” means affordable housing that is affordable to a moderate income household.

Preserved. The term “preserved” means received physical rehabilitation and/or financial operating assistance for existing buildings in exchange for affordability for existing and future tenants.

Very low income household. The term “very low income household” means a household that has an income of more than 30 percent of the area median income but no more than 50 percent of the area median income, adjusted for the size of the household.

Very low income affordable housing (VLI-AH) unit. The term “very low income affordable housing (VLI-AH) unit” means affordable housing that is serving a very low income household.

§ 26-2102 Affordable housing plan report.*

The mayor shall, by September 30, 2019, and by September 30 in every year thereafter, submit to the speaker of the council and make publicly available online a report on the progress of a citywide plan that provides for the creation and preservation of affordable housing. Such report shall include, at a minimum:

  1. A summary of the current demand for affordable housing;
  2. A description of obstacles to fulfilling such demand, including, but not limited to, the price of land and buildings; the availability of federal, state and local financial assistance, including tax benefits relating to the creation or preservation of affordable housing;
    1. The number of ELI-AH units projected to be created and the number of ELI-AH units projected to be preserved pursuant to such plan each year;

   (b) The number of VLI-AH units projected to be created and the number of VLI-AH units projected to be preserved pursuant to such plan each year;

   (c) The number of LI-AH units projected to be created and the number of LI-AH units projected to be preserved pursuant to such plan each year;

   (d) The number of MI-AH units projected to be created and the number of MI-AH units projected to be preserved pursuant to such plan each year; and

   (e) The number of MIDI-AH units projected to be created and the number of MIDI-AH units projected to be preserved pursuant to such plan each year;

    1. The number of ELI-AH units created pursuant to such plan in the preceding fiscal year in each neighborhood tabulation area;

   (b) The number of VLI-AH units created pursuant to such plan in the preceding fiscal year in each neighborhood tabulation area;

   (c) The number of LI-AH units created pursuant to such plan in the preceding fiscal year in each neighborhood tabulation area;

   (d) The number of MI-AH units created pursuant to such plan in the preceding fiscal year in each neighborhood tabulation area; and

   (e) The number of MIDI-AH units created pursuant to such plan in the preceding fiscal year in each neighborhood tabulation area;

    1. The number of ELI-AH units preserved pursuant to such plan the preceding fiscal year in each neighborhood tabulation area;

   (b) The number of VLI-AH units preserved pursuant to such plan the preceding fiscal year in each neighborhood tabulation area;

   (c) The number of LI-AH units preserved pursuant to such plan the preceding fiscal year in each neighborhood tabulation area;

   (d) The number of MI-AH units preserved pursuant to such plan the preceding fiscal year in each neighborhood tabulation area; and

   (e) The number of MIDI-AH units preserved pursuant to such plan the preceding fiscal year in each neighborhood tabulation area;

8.*   A list of policies, programs and actions that the city has implemented citywide to carry out such plan, including, but not limited to, additional term sheets created in the preceding fiscal year, preservation programs established by the department in the preceding fiscal year and any other programs established by the mayor to expand preservation and creation of affordable housing.

  • Editor’s note: so in original; there are no subsections 6. and 7.

§ 26-2103 Public outreach.*

In developing a citywide plan for the creation and preservation of affordable housing, representatives of the department shall consult and meet with representatives from the real estate industry, building owners and managers, affordable housing developers, tenant advocacy organizations, affordable housing advocacy organizations, legal service providers and other relevant persons. Such plan shall include a description of outreach performed to fulfill the requirements of this section.

Chapter 21: Short-Term Residential Rentals*

§ 26-2101 Definitions.*

As used in this chapter:

Administering agency. The term “administering agency” means the office of special enforcement, as established under executive order number 96 for the year 2006, or such other agency as the mayor may designate by executive order.

Booking service. The term “booking service” means a person who, directly or indirectly:

   1. Provides one or more online, computer or application-based platforms that individually or collectively can be used to (i) list or advertise offers for short-term rentals, and (ii) either accept such offers, or reserve or pay for such rentals; and

   2. Charges, collects or receives a fee for the use of such a platform or for provision of any service in connection with a short-term rental.

A booking service shall not be construed to include a platform that solely lists or advertises offers for short-term rentals.

Building. The term “building” means a building as defined in the New York city building code that is located in the city.

Class B multiple dwelling. The term “class B multiple dwelling” shall have the meaning ascribed to such term in the housing maintenance code.

Directly or indirectly. The term “directly or indirectly” means a person acting directly or indirectly through any subsidiary or affiliate thereof to perform the activity described in the definition of booking service.

Dwelling unit. The term “dwelling unit” means a dwelling unit, as such term is defined in the housing maintenance code, that is located in a building within the city.

Host. The term “host” means a person other than a booking service, including a co-host, who uses a booking service to offer, manage or administer a short-term rental.

Short-term rental. The term “short-term rental” means a rental for occupancy of fewer than 30 consecutive days of (i) a dwelling unit or part thereof or (ii) housing accommodations within a building.

§ 26-2102 Requirements for booking services.*

  1. A booking service shall periodically submit to the administering agency a report of transactions for which the booking service charged, collected or received a fee, directly or indirectly, for activity described in the definition of booking service. Each short-term rental associated with such fee is considered to be a separate transaction. The report shall be submitted in a time, manner and form established by such agency, including but not limited to, electronic submission in a format established by such agency. The report shall be submitted on a monthly basis, or less frequently as determined by such agency. Such report shall include the following information for each such transaction or, in instances where such information is unavailable to the booking service, an explanation of why such information is unavailable:

   (1) The physical address of the short-term rental associated with such transaction, including the street name, street number, apartment or unit number, borough or county, and zip code;

   (2) The full legal name, physical address, phone number and email address of the host of such short-term rental and the uniform resource locator (URL) and the individualized name and number of such host on such booking service’s platform;

   (3) The individualized name and number and the URL of such advertisement or listing;

   (4) A statement as to whether such short-term rental transaction involved (i) short-term rental of the entirety of a dwelling unit or housing accommodations in a building or (ii) short-term rental of part of such unit or housing accommodations;

   (5) The total number of days that the dwelling unit, part thereof or housing accommodations in a building were rented as a short-term rental through such booking service’s platform;

   (6) The total amount of fees received by such booking service for such short-term rental; and

   (7) If such booking service collects rent for short-term rentals on behalf of such host, (i) the total amount of such rent received by such booking service and transmitted to such host and (ii) the account name and consistently anonymized identifier for the account number for the account used by such host to receive payments from such booking service or, if such booking service provides an explanation why such anonymized identifiers are unavailable, the account name and account number for such account.

  1. A booking service shall obtain, from each host using such booking service to offer, manage or administer a short-term rental, lawful consent to provide the information described in subdivision a to the administering agency. Obtaining lawful consent may include, but is not limited to, advising or providing notice to a user of the booking service that new or continuing use of such booking service as a host constitutes consent to such disclosure. It shall not be a defense to a violation of subdivision a that the booking service did not obtain consent.

§ 26-2103 Exemptions for certain class B multiple dwellings.*

The administering agency shall publish a list of class B multiple dwellings lawfully used for transient occupancy, as compiled by such agency. The provisions of subdivisions a and b of section 26-2102 shall not apply to short-term rental of a dwelling unit or part thereof or of housing accommodations within a building in a class B multiple dwelling on such published list. Such agency shall promulgate rules that (i) establish a process for an owner of a class B multiple dwelling to have such multiple dwelling included on such list and (ii) provide for the review and updating of such list no less than every six months. The administering agency shall revise such list when notified of an error by the department of buildings or other agency.

§ 26-2104 Penalties.

A booking service that fails to submit a report in compliance with subdivision a of section 26-2102 shall be liable for a civil penalty, to be assessed once per reporting period for each set of records corresponding to a listing which is missing, incomplete or inaccurate. The civil penalty shall not be more than the greater of $1,500 or the total fees collected during the preceding year by the booking service for transactions related to the listing. The civil penalties established by this section may be recovered in a proceeding before the office of administrative trials and hearings or a court of competent jurisdiction.

§ 26-2105 Privacy.

  1. Information reported pursuant to section 26-2102 shall be available for public review only to the extent required by federal, state and local law.
  2. The administering agency shall establish rules governing retention and disposal of information obtained pursuant to this chapter.

Chapter 22: Expiring Affordable Housing

§ 26-2201 Definitions.

For the purposes of this chapter, the following terms have the following meanings:

Affordable housing unit. The term “affordable housing unit” means a dwelling unit that is (i) required, pursuant to a federal, state or local law, rule or program administered by the city or an agreement with the city or a person acting on the city’s behalf, to be affordable for an extremely low income household, a very low income household, a low income household, a moderate income household or a middle income household and (ii) operates pursuant to an agreement administered by the department.

Area median income. The term “area median income” means the Income Limits as defined annually by the U.S. Department of Housing and Urban Development (HUD) for the New York, NY HUD Metro FMR Area (HMFA), as established in Section 3 of the Housing Act of 1937, as amended.

Department. The term “department” means the department of housing preservation and development.

Dwelling unit. The term “dwelling unit” has the meaning ascribed to such term in the housing maintenance code.

Expiring affordable housing unit. The term “expiring affordable housing unit” means, with respect to the report required by sections 26-2204 and 26-2205, an affordable housing unit that, without a change in a federal, state or local law, rule or program or an agreement with the city or a person acting on the city’s behalf, will cease to be an affordable housing unit in or before the end of the second calendar year that commences after the due date of such report.

Extremely low income household. The term “extremely low income household” means a household that has an income of no more than 30 percent of the area median income, adjusted for the size of the household.

Extremely low income affordable housing (ELI-AH) unit. The term “extremely low income affordable housing (ELI-AH) unit” means an affordable housing unit that is required to be occupied upon initial occupancy by an extremely low income household.

Low income household. The term “low income household” means a household that has an income of more than 50 percent of the area median income but no more than 80 percent of the area median income, adjusted for the size of the household.

Low income affordable housing (LI-AH) unit. The term “low income affordable housing (LI-AH) unit” means an affordable housing unit that is required to be occupied upon initial occupancy by a low income household.

Moderate income household. The term “moderate income household” means a household that has an income of more than 80 percent of the area median income but no more than 120 percent of the area median income, adjusted for the size of the household.

Moderate income affordable housing (MI-AH) unit. The term “moderate income affordable housing (MI-AH) unit” means an affordable housing unit that is required to be occupied upon initial occupancy by a moderate income household.

Middle income household. The term “middle income household” means a household that has an income of more than 120 percent of the area median income but no more than 165 percent of the area median income, adjusted for the size of the household.

Middle income affordable housing (MIDI-AH) unit. The term “middle income affordable housing (MIDI-AH) unit” means an affordable housing unit that is required to be occupied upon initial occupancy by a middle income household.

Very low income household. The term “very low income household” means a household that has an income of more than 30 percent of the area median income but no more than 50 percent of the area median income, adjusted for the size of the household.

Very low income affordable housing (VLI-AH) unit. The term “very low income affordable housing (VLI-AH) unit” means an affordable housing unit that is required to be occupied upon initial occupancy by a very low income household.

§ 26-2202 Tracking system plan.

By no later than April 30, 2019, the department shall submit to the mayor and the speaker of the council, and post publicly on the city’s website, a report providing details of a plan for the development of an integrated data tracking system for (i) start dates and expiration dates for all department regulatory agreements containing requirements for affordable housing units to the extent such information is available in the regulatory agreements or department records, (ii) the affordability requirements contained in such regulatory agreements to the extent such information is available in the regulatory agreements or department records, and (iii) a target date for implementation of the plan.

§ 26-2203 Reporting.

By no later than April 30, 2020, and annually thereafter, the department shall submit to the mayor and to the council a report on the progress of the tracking system plan required by section 26-2202, until the completion of the implementation of the plan.

§ 26-2204 Annual review.

By no later than December 31 in each year following the implementation of the tracking system required by section 26-2202, the department shall conduct a review of affordable housing units citywide to determine:

  1. The number of ELI-AH units that are expiring affordable housing units;
  2. The number of VLI-AH units that are expiring affordable housing units;
  3. The number of LI-AH units that are expiring affordable housing units;
  4. The number of MI-AH units that are expiring affordable housing units; and
  5. The number of MIDI-AH units that are expiring affordable housing units.

§ 26-2205 Review of expiring affordable housing units.

  1. The department shall submit to the mayor, the speaker of the council and each council member by no later than December 31 in each year following implementation of the tracking system required by section 26-2202:

   1. The number of ELI-AH units that are expiring affordable housing units in the council district that such member represents;

   2. The number of VLI-AH units that are expiring affordable housing units in the council district that such member represents;

   3. The number of LI-AH units that are expiring affordable housing units in the council district that such member represents;

   4. The number of MI-AH units that are expiring affordable housing units in the council district that such member represents;

   5. The number of MIDI-AH units that are expiring affordable housing units in the council district that such member represents; and

   6. A description of department preservation efforts and the tools available to the department for the purpose of preservation.

  1. The department shall conduct outreach to council members representing expiring affordable housing units to discuss preservation efforts.

Chapter 24: Buyout Agreement Filing Requirements

§ 26-2401 Application.

This chapter applies to all buyout agreements executed on or after the effective date of this chapter.

§ 26-2402 Definitions.

As used in this chapter:

Buyout agreement. The term “buyout agreement” means an agreement wherein the owner of a dwelling unit exchanges money or other valuable consideration to induce any person lawfully entitled to occupancy of such unit to surrender or waive any rights in relation to such occupancy that results in the tenant vacating such unit.

Commissioner. The term “commissioner” means the commissioner of housing preservation and development and any successor thereto.

Department. The term “department” means the department of housing preservation and development and any successor thereto.

§ 26-2403 Owner filing requirements.

Within 90 days after the execution of a buyout agreement for a dwelling unit, the owner of such unit must electronically provide the following to the department in a manner prescribed by the commissioner of the department:

  1. The name of the owner;
  2. The address of the dwelling unit that is the subject of the buyout agreement;
  3. The amount of money or, if applicable, a description of other valuable consideration agreed upon in the buyout agreement. If such other valuable consideration included the dismissal of a pending action or proceeding, the caption, index number and county in which the pending action or proceeding was venued;
  4. The date that the buyout agreement was executed; and
  5. The amount of time, in months, remaining in the lease for the subject dwelling unit, provided that a tenant with a legal right to a lease renewal pursuant to state law shall be indicated as having an unlimited number of months remaining.

§ 26-2404 Department reporting requirements.

No later than January 31, 2021, and by January 31 of each year thereafter, the commissioner shall submit a report to the mayor and the speaker of the council that contains the total number of buyout agreements executed during the prior calendar year. Such report shall include, but need not be limited to, the following for each census tract:

  1. The amount of money or other consideration agreed upon in each such agreement;
  2. The date that each such agreement was executed; and
  3. The amount of time, in months, remaining in the lease for the dwelling unit subject to such agreement, provided that a tenant with a legal right to a lease renewal pursuant to state law shall be indicated as having an unlimited number of months remaining.

§ 26-2405 Penalties and enforcement.

An owner who is required to file a buyout agreement under this chapter and who fails to file in the time required by section 26-2403 shall be liable for a non-hazardous violation pursuant to section 27-2115.

Chapter 25: Audits of Certifications of Correction

§ 26-2501 Definitions.

As used in this chapter, the term “certification of correction” means the paper or electronic document filed with the department of buildings or the department of housing preservation and development by a property owner or managing agent to affirm that the violating conditions cited on a notice of violation have been corrected within the required timeframe.

§ 26-2502 Audits of certifications of correction.

  1. The department of buildings shall audit no fewer than 15 percent of certifications of correction of immediately hazardous violations filed with such department. Such audit shall include, at minimum, an inspection by such department to ensure that the violating conditions cited in the notice of violation have been corrected.
  2. The department of housing preservation and development shall audit no fewer than 15 percent of all certifications of correction of class C violations filed with such department. Such audit shall include, at minimum, an inspection by such department to ensure that the violating conditions cited in the notice of violation have been corrected.

§ 26-2503 Reporting.

By March 31, 2020 and no later than March 31 annually thereafter, the department of buildings and the department of housing preservation and development shall each submit to the speaker of the council an electronic report describing the findings of the audits performed by such departments in the previous year pursuant to section 26-2502 of this chapter. Such report shall include, but not be limited to:

  1. The total number of audits conducted;
  2. The percentage of certifications of correction audited;
  3. The percentage of audited certifications of correction found to have been false;
  4. For audited certifications of correction found to have been false, the total amount of civil penalties collected and, if applicable, the number of additional sanctions imposed, disaggregated by type; and
  5. For buildings where an audited certification of correction is found to have been false in the reporting period, whether a certification of correction filed for such building has been audited by the department of buildings or the department of housing preservation and development in the previous five years, and whether such audit or audits resulted in a finding or findings of false certification.

Chapter 26: Affordable Housing Placements

§ 26-2601 Definitions.

For the purposes of this chapter, the following terms have the following meanings:

Affordable housing unit. The term “affordable housing unit” means “affordable housing unit” as defined in section 26-2201.

Area median income. The term “area median income” means the income limits as defined annually by the United States department of housing and urban development (HUD) for the New York, NY HUD Metro FMR Area (HMFA), as established in section 3 of the housing act of 1937, as amended.

Department. The term “department” means the department of housing preservation and development.

Extremely low income household. The term “extremely low income household” means a household that has an income of no more than 30 percent of the area median income, adjusted for the size of the household.

Low income household. The term “low income household” means a household that has an income of more than 50 percent of the area median income but no more than 80 percent of the area median income, adjusted for the size of the household.

Middle income household. The term “middle income household” means a household that has an income of more than 120 percent of the area median income but no more than 165 percent of the area median income, adjusted for the size of the household.

Moderate income household. The term “moderate income household” means a household that has an income of more than 80 percent of the area median income but no more than 120 percent of the area median income, adjusted for the size of the household.

Very low income household. The term “very low income household” means a household that has an income of more than 30 percent of the area median income but no more than 50 percent of the area median income, adjusted for the size of the household.

§ 26-2602 Report.

  1. No later than September 1, 2021 and on September 1 of each third year thereafter, the department shall submit to the mayor and the council, and publicly post on its website, a report on each lottery for affordable housing units that was administered by or on behalf of the department during the prior three fiscal years, provided that each affordable housing unit available through each such lottery was leased or purchased.
  2. The data in such report shall be presented at the citywide, borough and community district levels, with aggregated totals for each of the paragraphs in subdivision d, except that the data responsive to the inquiry specified in paragraph 4 of subdivision d shall be aggregated only at the borough level. For each required geographic level, data responsive to the inquiries specified in subdivision d shall be disaggregated by the following items:

   1. Applicant household size; and

   2. Applicant household income, broken down into bands of extremely low income households, very low income households, low income households, moderate income households and middle income households.

  1. Data responsive to the inquiries specified in subdivision d shall be disaggregated at the citywide and borough levels by each of the following items, except that data responsive to the inquiry specified in paragraph 4 of subdivision d shall be disaggregated only at the borough level:

   1. Race or ethnicity of applicants, to the extent such information is reported to the department; and

   2. Applicant preference category, such as veteran’s preference, if any (listing “none” otherwise).

  1. As described in subdivisions b and c, data for applicants who had applied through the housing lottery system for affordable housing units shall be provided for each of the following:

   1. The number of applications received for affordable housing units;

   2. The number of applicants invited to confirm their eligibility for affordable housing units;

   3. The number of applicants selected for affordable housing units;

   4. The number of applicants who signed leases for affordable housing units; and

   5. The number of applicants who were selected for, but declined to sign a lease for, affordable housing units.

  1. The initial report submitted on September 1, 2021 shall include the information required by subdivisions b and c for all of the inquiries specified in subdivision d for the period from July 1, 2020 until June 30, 2021, where available, and shall also include the information required by subdivisions b and c for the inquiries specified in paragraphs 1 and 4 of subdivision d for the period from January 1, 2014 until June 30, 2020.
  2. If a category disaggregated in subdivisions b, c or d contains between 0 and 9 applicants, or allows another category to be narrowed to between 0 and 9 applicants, the number shall be replaced with a symbol.

Chapter 27: Mitchell-Lama Development Reporting Requirements

§ 26-2701 Definitions.

As used in this chapter, the following terms have the following meanings:

Department. The term “department” means the department of housing preservation and development.

Mitchell-Lama development. The term “Mitchell-Lama development” means a housing development organized pursuant to article two of the private housing finance law and supervised by the department.

Waiting list. The term “waiting list” means a list of applicants from which the managing agent of a Mitchell-Lama development is required to process potential tenants or shareholders as applicable for subsequent occupancies of such development.

§ 26-2702 Mitchell-Lama development waiting list report.

By September 1, 2021 and by September 1 of each year thereafter, the department shall submit to the mayor, the speaker of the council and the public advocate, and post to its website, a report on waiting lists for Mitchell-Lama developments that have been digitized and are incorporated into the housing portal required by section 26-1802. Such report shall be disaggregated by each Mitchell-Lama development and include, but need not be limited to, the following:

  1. The number of unique applicants on the waiting list on the last day of the prior calendar year;
  2. The number of applicants on the waiting list:

   (a) Who were not selected for occupancy in such development within the prior calendar year; and

   (b) Whose position on the waiting list was sequentially prior to a person other than a veteran who was selected for occupancy in such development within the prior calendar year;

  1. The number of substantiated complaints received within the prior calendar year regarding the waiting list for such development, including, but not limited to:

   (a) The selection for occupancy of an applicant whose position on the waiting list was sequentially later than applicants who were not selected for occupancy in such development from the same waiting list within the prior calendar year; and

   (b) The waiting list process; and

  1. The number of applicants who were admitted under the preference for veterans for such development within the prior calendar year.

Chapter 28: Set Asides in Housing Development Projects for Homeless Individuals and Families

§ 26-2801 Definitions.

As used in this chapter, the following terms have the following meanings:

City financial assistance. The term “city financial assistance” means any loans, grants, tax credits, tax exemptions, tax abatements, subsidies, mortgages, debt forgiveness, land conveyances for less than appraised value or other thing of value allocated, conveyed or expended by the city other than as-of-right assistance, tax abatements or benefits, including but not limited to, benefits approved in accordance with sections 421-a or 489 of the real property tax law, or any assistance provided to a developer for a housing development project or a housing preservation project, the amount of which is based on an evaluation of as-of-right assistance, tax abatement or benefits for which such developer would have been eligible.

Class A dwelling unit. The term “class A dwelling unit” means a dwelling unit in a class A multiple dwelling, as defined in section 4 of the multiple dwelling law.

Department. The term “department” means the department of housing preservation and development.

Developer. The term “developer” means an individual, sole proprietorship, partnership, joint venture, corporation or other entity that receives city financial assistance for a housing development project or a housing preservation project.

Dwelling unit offered for rent. The term “dwelling unit offered for rent” means a class A dwelling unit that is: (i) occupied on a rental basis; or (ii) required pursuant to a regulatory agreement with a federal, state or local government agency to be offered for occupancy on a rental basis, regardless of whether such unit has been constructed.

Housing development project. The term “housing development project” means construction of any multiple dwelling of no less than 41 new dwelling units offered for rent; provided that such multiple dwelling is subject to a regulatory agreement with a federal, state or local government agency, and provided, further, that the term “housing development project” shall not include any rehabilitation of a multiple dwelling or any construction of (i) any multiple dwelling that is owned by a limited-profit housing company organized pursuant to article 2 of the private housing finance law; or (ii) any multiple dwelling on HUD restricted land in which less than 100 percent of the class A dwelling units are subject to a regulatory agreement requiring that occupancy of such units be restricted based on the income of the occupants.

Housing preservation project. The term “housing preservation project” means rehabilitation or alteration of any multiple dwelling by a developer that preserves at least one dwelling unit offered for rent; provided that such multiple dwelling is subject to a regulatory agreement with a federal, state or local government agency, and provided, further, that the term “housing preservation project” shall not include any rehabilitation or alteration of any multiple dwelling that is owned by a limited-profit housing company organized pursuant to article 2 of the private housing finance law, and shall not include any rehabilitation or alteration of any multiple dwelling on HUD restricted land.

HUD restricted land. The term “HUD restricted land” means land that was subject to a declaration of trust or restrictive covenant in favor of the United States department of housing and urban development for the purpose of public housing.

On-site supportive services. The term “on-site supportive services” means the provision of services to residents that may include, but are not limited to, assistance with the physical health, mental health, and substance abuse needs of such residents.

Receives. The term “receives” means the execution of a written instrument that sets forth the provision of city financial assistance to a developer.

Rehabilitation. The term “rehabilitation” means correction and restoration to a better condition, which includes but is not limited to:

   (i) projects involving demolition of a multiple dwelling, reconstruction of a multiple dwelling in place of the demolished multiple dwelling and provision to tenants of such demolished multiple dwelling an opportunity to occupy the reconstructed multiple dwelling; and

   (ii) projects involving demolition of dwelling units in a multiple dwelling and reconstruction of new dwelling units in such multiple dwelling.

Supportive housing project. The term “supportive housing project” means a project for the provision of housing in which a developer has entered into a regulatory agreement with a federal, state or local government entity that requires (i) at least one residential unit in such project to be reserved for homeless, disabled individuals or homeless families with a disabled head-of-household, and (ii) the provision of on-site supportive services to the residents of such project.

§ 26-2802 Set asides.

The department shall require that any developer who receives city financial assistance for a housing development project sets aside for homeless individuals and families at least 15 percent of the number of dwelling units offered for rent in such housing development project that are subject to a regulatory agreement requiring that occupancy of such units be restricted based on the income of occupants in such housing development project.

§ 26-2803 Report.

By no later than September 30, 2021, and by September 30 in each year thereafter, the department shall submit to the mayor and the speaker of the council a report specifying the following data:

  1. For each housing development project that received city financial assistance in the preceding fiscal year, (i) the number of dwelling units offered for rent that are subject to a regulatory agreement requiring that occupancy of such units be restricted based on the income of the occupants, (ii) the number of such units set aside for homeless individuals and families and (iii) whether such housing development project is a supportive housing project; and
  2. For each housing preservation project that received city financial assistance in the preceding fiscal year, (i) the number of dwelling units offered for rent that are subject to a regulatory agreement requiring that occupancy of such units be restricted based on the income of the occupants, (ii) the number of such units set aside for homeless individuals and families and (iii) whether such housing preservation project is a supportive housing project.