ERL - Emergency Housing Rent Control Law 274/46 337/61
Chapter 274 of the laws of 1946 and as amended generally by chapter 337 of the laws of 1961 Emergency housing rent control law * Section 1. Declaration and findings; termination. 1. The legislature hereby finds that a serious public emergency continues to exist in the housing of a considerable number of persons in the state of New York 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 by the legislature 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; that the transition from regulation to a normal market of free bargaining between landlord and tenant, while still the objective of state policy, must be administered with due regard for such emergency; that in order to prevent uncertainty, hardship and dislocation, the provisions of this act are declared to be necessary and designed to protect the public health, safety and general welfare. 2. The provisions of this act, and all regulations, orders and requirements thereunder shall remain in full force and effect until and including June 15, 2011. * NB Effective until June 16, 2011 * § 2. Definitions. When used in this act, unless a different meaning clearly appears from the context, the following terms shall mean and include: 1. "Commission". Prior to July first, nineteen hundred sixty-four, the temporary state housing rent commission created by this act. On and after July first, nineteen hundred sixty-four, the division of housing and community renewal in the executive department. 2. "Housing accommodation." 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, 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 were previously exempt, or not subject to control as a result of conversion or a change from a non-housing to a housing use and which have subsequently been certified by a municipal department having jurisdiction to be a fire hazard or in a continued dangerous condition or detrimental to life or health but only so long as such illegal or hazardous condition continues and further certification with respect thereto shall not be required notwithstanding any inconsistent provision of this act, and any plot or parcel of land which had been rented prior to May first, nineteen hundred fifty, for the purpose of permitting the tenant thereof to construct or place his own dwelling thereon, unless exempt or excluded from control pursuant to any other provision of this act, except that it shall not include structures
in which all of the housing accommodations are exempt or not subject to control under this act or any regulation issued thereunder; or (a) 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 (b) notwithstanding any previous order, finding, opinion or determination of the 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 whether such establishment provides either some services customarily provided by hotels, or is represented to be a hotel, or both; and provided further that housing accommodations in hotels only within the cities of Buffalo and New York 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 act; or (c) any motor court, or any part thereof; any trailer, or trailer space used exclusively for transient occupancy or any part thereof; or any tourist home serving transient guests exclusively, or any part thereof; or (d) 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 immediate family; or (e) housing accommodations operated by the United States, the state of New York, or any political subdivision thereof, or by any municipal or public authority, only so long as they are so operated; or housing accommodations in buildings in which rentals are fixed by or subject to the supervision of the commissioner of housing and community renewal pursuant to powers granted under laws other than the emergency housing rent control law; (f) housing accommodations in buildings operated exclusively for charitable purposes on a non-profit basis; or (g) housing accommodations which were completed on or after February first, nineteen hundred forty-seven, provided, however, 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 which are (1) housing accommodations created by a change from a non-housing to a housing use on or after February first, nineteen hundred forty-seven, or which are (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 conversion of housing accommodations on or after May first, nineteen hundred fifty, shall continue to be subject to rent control as provided for herein unless the commission issues an order decontrolling them which it shall do 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 commission; provided further, however, that such order of decontrol shall not apply to that portion of the original housing accommodation 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 section five of this act; or (h) housing accommodations which are rented after April first, nineteen hundred fifty-three, and have been continuously occupied by the owner thereof for a period one year prior to the date of renting; provided, however, that this paragraph 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 this act within the two year period immediately preceding the date of such renting, 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 (i) housing accommodations which become vacant provided, however, that this exemption shall not apply or become effective where the commission determines or finds that the housing accommodations became vacant because the landlord or any person acting on his 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 use or occupancy of the housing accommodations; and further provided that housing accommodations as to which a housing emergency has been declared pursuant to the emergency tenant protection act of nineteen seventy-four shall be subject to the provisions of such act for the duration of such emergency; or (j) housing accommodations (not otherwise exempt or excluded from control) in two family houses occupied in whole or in part by the owner thereof, and in one family houses whether or not so occupied, on and after July first, nineteen hundred fifty-five, in the counties of Monroe, Nassau, Oneida, Onondaga and Schenectady, and, on and after July first, nineteen hundred fifty-seven, any housing accommodations in the county of Onondaga containing four rental units or less, provided, however, that this exemption with respect to one and two family houses shall remain effective only so long as the housing accommodations are not occupied for other than single family occupancy, and provided further, however, that this exemption shall become or remain effective in any city or town within the counties of Monroe, Oneida or Schenectady subject to the provisions of subdivision four of section twelve hereof providing for the continuance or reestablishment of controls with respect to such housing accommodations therein; or (k) housing accommodations (not otherwise exempt or excluded from control) elsewhere than in the city of New York, except housing accommodations used as boarding houses or rooming houses in the county
of Westchester, which are or become vacant on or after July first, nineteen hundred fifty-seven, provided, however, that this exemption shall not apply or become effective in any case where the vacancy in the housing accommodations occurred or occurs because of the removal of the tenant to another housing accommodation in the same building, or because of the eviction of the tenant after the issuance of a final order in a summary proceeding to recover possession of the housing accommodation, whether after a trial of the issues or upon the consent or default of the tenant or otherwise without a trial, and provided, further, however that this exemption shall become effective in any city or town subject to the provisions of subdivision five of section twelve hereof providing for the continuance of control with respect to such housing accommodations, 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. (l) housing accommodations which are not occupied by the tenant in possession as his or her primary residence provided, however, that any such housing accommodation shall continue to be subject to rent control as provided herein unless the commission issues an order decontrolling such accommodation which the commission shall do upon application by the landlord, whenever it is established by any facts and circumstances which, in the judgment of the commission, may have a bearing upon the question of residence, that the tenant maintains his or her primary residence at some place other than at such housing accommodation. 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. (m) upon the issuance of an order of decontrol by the division, housing accommodations which: (1) are occupied by persons who have a total annual income in excess of one hundred seventy-five thousand dollars in each of the two preceding calendar years, as defined in and subject to the limitations and process set forth in section two-a of this law; and (2) have a maximum rent of two thousand dollars or more per month. (n) any housing accommodation with a maximum rent of two thousand dollars or more per month at any time between the effective date of this paragraph and October first, nineteen hundred ninety-three which is or becomes vacant on or after the effective date of this paragraph, or any housing accommodation with a maximum rent of two thousand dollars or more per month at any time on or after the effective date of the rent regulation reform act of 1997 which is or becomes vacant on or after the effective date of the rent regulation reform act of 1997. This exclusion shall apply regardless of whether the next tenant in occupancy or any subsequent tenant in occupancy actually is charged or pays less than two thousand dollars a month. This exclusion shall not apply, however, to or become effective with respect to housing accommodations which the commissioner determines or finds that the landlord or any person acting on his or her behalf, with intent to cause the tenant to vacate, has engaged in any course of conduct (including, but not limited to, interruption or discontinuance of required 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 in connection with such course of conduct, any other general enforcement provision of this law shall also apply.
2-a. The landlord of a housing accommodation specified in paragraph (h) or (i) or (j) or (k) of subdivision two of this section shall file a report with the commission within thirty days following the date of first rental of such accommodation after decontrol. No copy of such report shall be required to be served upon the new tenant of such housing accommodation. 3. "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. 4. "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. 5. "Person." An individual, corporation, partnership, association, or any other organized group of individuals or the legal successor or representative of any of the foregoing. 6. "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. 7. "Tenant." A tenant, subtenant, lessee, sublessee, or other person entitled to the possession or to the use or occupancy of any housing accommodation. 8. "Documents." Records, books, accounts, correspondence, memoranda and other documents, and drafts and copies of any of the foregoing. 9. "Municipality." A city, town or village. 10. "Local governing body." a. In the case of a city, the council, common council or board of aldermen and the board of estimate, board of estimate and apportionment or board of estimate and contract, if there be one. b. In the case of a town, the town board. c. In the case of a village, the board of trustees. 11. "Local laws." The local laws specified in chapter one of the laws of nineteen hundred fifty, namely local laws numbers twenty-one, twenty-three, twenty-four, twenty-five and seventy-three of the local laws of the city of New York for the year nineteen hundred forty-nine; and local law number three of the city of Buffalo for the year nineteen hundred forty-seven. 12. "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. * NB Effective until June 16, 2011 * § 2-a. (a) For purposes of this section, annual income shall mean the federal adjusted gross income as reported on the New York state income tax return. Total annual income means the sum of the annual incomes of all persons who occupy the housing accommodation as their primary residence on other than a temporary basis, excluding bona fide employees of such occupants residing therein in connection with such employment and excluding bona fide subtenants in occupancy pursuant to the provisions of section two hundred twenty-six-b of the real property law. In the case where a housing accommodation is sublet, the annual income of the sublessor shall be considered. (b) On or before the first day of May in each calendar year, the owner of each housing accommodation for which the maximum rent is two thousand dollars or more per month may provide the tenant or tenants residing therein with an income certification form prepared by the division of housing and community renewal on which such tenant or tenants shall
identify all persons referred to in subdivision (a) of this section and shall certify whether the total annual income is in excess of one hundred seventy-five thousand dollars in each of the two preceding calendar years. Such income certification form shall state that the income level certified to by the tenant may be subject to verification by the department of taxation and finance pursuant to section one hundred seventy-one-b of the tax law and shall not require disclosure of any income information other than whether the aforementioned threshold has been exceeded. Such income certification form shall clearly state that: (i) only tenants residing in housing accommodations which had a maximum rent of two thousand dollars or more per month are required to complete the certification form; (ii) that tenants have protections available to them which are designed to prevent harassment; (iii) that tenants are not required to provide any information regarding their income except that which is requested on the form and may contain such other information the division deems appropriate. The tenant or tenants shall return the completed certification to the owner within thirty days after service upon the tenant or tenants. In the event that the total annual income as certified is in excess of one hundred seventy-five thousand dollars in each such year, the owner may file the certification with the state division of housing and community renewal on or before June thirtieth of such year. Upon filing such certification with the division, the division shall, within thirty days after the filing, issue an order of decontrol providing that such housing accommodations shall not be subject to the provisions of this law as of the first day of June in the year next succeeding the filing of the certification by the owner. A copy of such order shall be mailed by regular and certified mail, return receipt requested, to the tenant or tenants and a copy thereof shall be mailed to the owner. (c) 1. In the event that the tenant or tenants either fail to return the completed certification to the owner on or before the date required by subdivision (b) of this section or the owner disputes the certification returned by the tenant or tenants, the owner may, on or before June thirtieth of such year, petition the state division of housing and community renewal to verify, pursuant to section one hundred seventy-one-b of the tax law, whether the total annual income exceeds one hundred seventy-five thousand dollars in each of the two preceding calendar years. Within twenty days after the filing of such request with the division, the division shall notify the tenant or tenants that such tenant or tenants must provide the division with such information as the division and the department of taxation and finance shall require to verify whether the total annual income exceeds one hundred seventy-five thousand dollars in each such year. The division's notification shall require the tenant or tenants to provide the information to the division within sixty days of service upon such tenant or tenants and shall include a warning in bold faced type that failure to respond will result in an order of decontrol being issued by the division for such housing accommodation. 2. If the department of taxation and finance determines that the total annual income is in excess of one hundred seventy-five thousand dollars in each of the two preceding calendar years, the division shall, on or before November fifteenth of such year, notify the owner and tenants of the results of such verification. Both the owner and the tenants shall have thirty days within which to comment on such verification results. Within forty-five days after the expiration of the comment period, the division shall, where appropriate, issue an order of decontrol providing that such housing accommodation shall not be subject to the provisions of this law as of the first day of March in the year next succeeding the
filing of the owner's petition with the division. A copy of such order shall be mailed by regular and certified mail, return receipt requested, to the tenant or tenants and a copy thereof shall be sent to the owner. 3. In the event the tenant or tenants fail to provide the information required pursuant to paragraph one of this subdivision, the division shall issue, on or before December first of such year, an order of decontrol providing that such housing accommodation shall not be subject to the provisions of this law as of the first day of March in the year next succeeding the last day on which the tenant or tenants were required to provide the information required by such paragraph. A copy of such order shall be mailed by regular and certified mail, return receipt requested, to the tenant or tenants and a copy thereof shall be sent to the owner. 4. The provisions of the state freedom of information act shall not apply to any income information obtained by the division pursuant to this section. (d) This section shall apply only to paragraph (m) of subdivision two of section two of this law. (e) Upon receipt of such order of decontrol pursuant to this section, an owner shall offer the housing accommodation subject to such order to the tenant at a rent not in excess of the market rent, which for the purposes of this section means a rent obtainable in an arm's length transaction. Such rental offer shall be made by the owner in writing to the tenant by certified and regular mail and shall inform the tenant that such offer must be accepted in writing within ten days of receipt. The tenant shall respond within ten days after receipt of such offer. If the tenant declines the offer or fails to respond within such period, the owner may commence an action or proceeding for the eviction of such tenant. * NB Effective until June 16, 2011 * § 3. Temporary state housing rent commission. 1. There is hereby created a temporary state commission, to be known as the temporary state housing rent commission. Such commission shall consist of one commissioner, to be known as the state rent administrator, who shall be appointed by the governor, by and with the advice and consent of the senate, and who shall serve during the pleasure of the governor. He shall receive an annual salary to be provided by law. He shall be entitled to his expenses actually and necessarily incurred by him in the performance of his duties. 2. The commission shall establish and maintain such offices within the state as the commission may deem necessary, and shall designate one of them as its principal office. The commission may appoint such officers, counsel, employees and agents as the commission may deem necessary, fix their compensation within the limitations provided by law, and prescribe their duties. All employees of the commission shall be appointed in accordance with the provisions of the civil service law and rules. 3. Any officer or employee under federal or municipal civil service selected by the commission may, with the consent of the appropriate governmental agency by which he is or has been employed, be transferred without further examination or qualification to comparable offices, positions and employment under the commission. Any such officer or employee who has been appointed to an office or position under the rules and classifications of the state or any municipal civil service commission, shall retain, upon such transfer, the civil service classification and status which he had prior to such transfer. Any such officer or employee who at the time of transfer has a temporary or provisional appointment shall be subject to removal, examination or termination as though such transfer had not been made. The commission
may, by agreement with the appropriate federal agency and state civil service commission, make similar provision for any federal officer or employee so transferred. Notwithstanding the provisions of any other law, any such officer or employee so transferred, pursuant to the provisions of this section, who is a member or beneficiary under any existing municipal pension or retirement system, shall continue to have all rights, privileges, obligations and status with respect to such fund, system or systems as are now prescribed by law, but during the period of his employment by the commission, all contributions to any pension or retirement fund or system to be paid by the employer on account of such officer or employee, shall be paid by the commission. The commission may by agreement with the appropriate federal agency, make similar provisions relating to retirement for any federal officer or employee so transferred. * NB Effective until June 16, 2011 * § 4. General powers and duties of the commission. 1. At the time this act shall become effective, the commission shall establish maximum rents which shall be (a) for housing accommodations outside the city of New York, the maximum rent which was established on March first, nineteen hundred fifty, pursuant to the federal act, and shall not include adjustments granted by orders issued under the federal act after that date, regardless of whether they were made effective as of, or retroactive to, that date or a date prior thereto; and (b) for housing accommodations within the city of New York, the maximum rent which was established on March first, nineteen hundred fifty, pursuant to the federal act, and shall not include either, (1) adjustments granted by orders issued under the federal act after that date, regardless of whether they were made effective as of, or retroactive to, that date or a date prior thereto, or (2) adjustments granted by orders increasing the maximum rent, issued after March first, nineteen hundred forty-nine, under the federal act, regardless of whether the order of increase was made effective as of, or retroactive to, March first, nineteen hundred forty-nine, or a date prior thereto, but shall include adjustments for new or additional services or facilities provided by the landlord while the housing accommodations were not rented or where tenant-occupied, to which the tenant then in possession had agreed, either expressly or impliedly; and (c) for housing accommodations within the cities of New York and Buffalo which on March first, nineteen hundred fifty, had no maximum rent established pursuant to the federal act, but which were subject to a maximum rent established pursuant to the local laws of the cities of New York and Buffalo, the maximum rent which was established on March first, nineteen hundred fifty, pursuant to such local laws. 2. Whenever the commission determines that such action is necessary to effectuate the purposes of this act, it may also establish maximum rents for housing accommodations, as that term is defined herein, in municipalities in which no maximum rent was in effect on March first, nineteen hundred fifty. Any housing accommodation for which a maximum rent is so established shall be deemed a housing accommodation for all the purposes, and subject to all the provisions of this act. 2-a. For housing accommodations created by a change from a non-housing to a housing use or by conversion on or after February first, nineteen hundred forty-seven, including those decontrolled by order, and certified by a municipal department having jurisdiction to be a fire hazard or in a continued dangerous condition or detrimental to life or health, the maximum rent shall be the rent charged on January first, nineteen hundred fifty-seven, or the date of first rental, whichever is
later. Any housing accommodations for which a maximum rent is so established shall be deemed a housing accommodation for all the purposes, and subject to all the provisions of this act, but only so long as such illegal or hazardous condition continues and further certification with respect thereto shall not be required notwithstanding any inconsistent provision of this act. 2-b. Provision shall be made pursuant to regulations prescribed by the commission for the establishment, adjustment and modification of maximum rents in rooming houses, which shall include those housing accommodations subject to control pursuant to the provisions of paragraph (b) of subdivision two of section two of this act, having regard for any factors bearing on the equities involved, consistent with the purposes of this act to correct speculative, abnormal and unwarranted increases in rent. 3. Whenever the foregoing standard is not susceptible of application to a housing accommodation to which this act applies, and for which no maximum rent was established on March first, nineteen hundred fifty, or where no registration statement had been filed as had been required by the federal act, the maximum rent thereof shall be fixed by the commission, having regard to the maximum rents for comparable housing accommodations or any other factors bearing on the equities involved, consistent with the purposes of this act. 3-a. Notwithstanding the foregoing provisions of this section, on and after May first, nineteen hundred fifty-three, the maximum rent for any housing accommodations shall not be less than the maximum rent in effect on March first, nineteen hundred forty-three (or if there was no such maximum rent then in effect, the maximum rent first established pursuant to the federal act prior to July first, nineteen hundred forty-seven) plus fifteen per centum thereof as such sum is adjusted to reflect: (1) the amount of any decreases in maximum rent required by order because of decreases in dwelling space, services, furniture, furnishings or equipment, or substantial deterioration or failure to properly maintain such housing, and (2) the amount of increases in maximum rent authorized by order because of increases in dwelling space, services, furniture, furnishings or equipment, or major capital improvements. Nothing contained in this subdivision, however, shall have the effect of increasing the maximum rent of any housing accommodation more than fifteen per centum above the maximum rent in effect on April thirtieth, nineteen hundred fifty-three. 4. (a) The commission 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 act, 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 act; and provided further that such regulations shall be designed to maintain a system of rent controls at levels which, in the judgment of the commission, 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 the commission, for individual adjustment of maximum rents where the rental income from a property yields a net annual return of less than seven and one-half per centum of the valuation of the property. Such valuation shall be the current assessed valuation established by a city, town or village, which is in effect at the time of the filing of the application for an adjustment under this subparagraph properly adjusted by applying thereto the ratio which such
assessed valuation bears to the full valuation as determined by the state board of equalization and assessment on the basis of assessment rolls of cities, towns and villages for the year nineteen hundred fifty-four and certified for such year by such board pursuant to section forty-nine-d of the tax law; provided, however, that where at the time of the filing of the application for an adjustment under this subparagraph such board has computations for such year indicating a different ratio for subclasses of residential property in a city, town or village, the commission shall give due consideration to such different ratio except ratios in excess of one hundred percent, provided, further, that where such board has not determined and certified any ratio pursuant to such section of such law for a city, town or village for such year, the commission shall apply the ratio determined or certified by such board pursuant to section twelve hundred twelve of the real property tax law for the most recent year; except where there has been a bona fide sale of the property within the period between March fifteenth, nineteen hundred fifty-seven, and the time of the filing of the application, as the result of a transaction at arms' length, on normal financing terms at a readily ascertainable price and unaffected by special circumstances such as a forced sale, exchange of property, package deal, wash sale or sale to cooperative; provided, however, that where there has been more than one such bona fide sale within a period of two years prior to the date of the filing of such application the commission shall disregard the most recent of such sales if a prior sale within such two-year period was adopted as the valuation of the property in a proceeding under this subparagraph. In determining whether a sale was on normal financing terms, the commission shall give due consideration to the following factors: (i) The ratio of the cash payment received by the seller to (a) the sales price of the property and (b) the annual gross income from the property; (ii) The total amount of the outstanding mortgages which are liens against the property (including purchase money mortgages) as compared with the equalized assessed valuation of the property; (iii) 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; (iv) The presence of deferred amortization in purchase money mortgages, or the assignment of such mortgages at a discount; (v) Any other facts and circumstances surrounding such sale which, in the judgment of the commission, may have a bearing upon the question of financing. No application for adjustment of maximum rent based upon a sales price valuation shall be filed by the landlord under this subparagraph prior to six months from the date of such sale of the property. In addition, no adjustment ordered by the commission based upon such sales price valuation shall be effective prior to one year from the date of such sale. Where, however, the assessed valuation of the land exceeds four times the assessed valuation of the buildings thereon, the commission may determine a valuation of the property equal to five times the equalized assessed valuation of the buildings, for the purposes of this subparagraph. The commission may make a determination that the valuation of the property is an amount different from such equalized assessed valuation where there is a request for a reduction in such assessed valuation currently pending; or 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. 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; or (2) the landlord who owns no more than four rental units within the state 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 allowances for depreciation, obsolescence and reserves, which have occurred since the federal date determining the maximum rent or the date the property was acquired by the present owner, whichever is later; or (3) 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 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 (4) the landlord and tenant 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 not in excess of fifteen per centum and for a term of not less than two years, except that where such lease provides for an increase in excess of fifteen per centum, the increase shall be automatically reduced to fifteen per centum; or (5) the landlord and tenant by mutual voluntary written agreement agree to a substantial increase or decrease in dwelling space or a change in the services, furniture, furnishings or equipment provided in the housing accommodations; provided that an owner shall be entitled to a rent increase where there has been a substantial modification or increase of dwelling space or an increase in the services, or installation of new equipment or improvements or new furniture or furnishings provided in or to a tenant's housing accommodation. The permanent increase in the maximum rent for the affected housing accommodation shall be one-fortieth of the total cost incurred by the landlord in providing such modification or increase in dwelling space, services, furniture, furnishings or equipment, including the cost of installation, but excluding finance charges provided further that an owner who is entitled to a rent increase pursuant to this clause 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. The owner shall give written notice to the commission of any such adjustment pursuant to this clause; or (6) there has been, since March first, nineteen hundred fifty, 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 (7) there has been since March first, nineteen
hundred fifty, a major capital improvement required for the operation, preservation or maintenance of the structure; or (8) there has been since March first, nineteen hundred fifty, 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 no adjustment granted hereunder shall exceed fifteen per centum unless the tenants have agreed to a higher percentage of increase, as herein provided; or (9) there has been, since March first, nineteen hundred fifty, 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 commission or pursuant to the federal act; or (10) 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. In addition to the filing of written statements setting forth the final rate of equalization concerning assessment rolls of cities, towns and villages, after determination thereof by the state board of equalization and assessment, with the appropriate officials as now required by law, such board shall also file a copy of each such statement, duly certified, in so far as they relate to cities, towns and villages subject to rent control pursuant to this act, with the state rent administrator and the chairman of the temporary state commission to study rents and rental conditions. Where such board has made computations indicating a different ratio for subclasses of residential property, such information shall also be filed with such rent administrator and the chairman of such temporary state commission. (b) The total of all adjustments ordered by the commission pursuant to (1) and (3) of paragraph (a) of subdivision four hereof for any individual housing accommodations shall not exceed fifteen per centum for any twelve month period; provided, however, that in ordering an adjustment pursuant to (1), the commission may waive this limitation where a greater increase is necessary to make the earned income of the property equal to its operating expense; provided further, however, that the maximum rents subject to the allocation requirement of paragraph (c) hereof shall be increased by such further additional amount during each succeeding twelve-month period, not exceeding fifteen per centum of the maximum rent in effect on the effective date of the original order of adjustment, until the maximum rents for the property shall reflect the net annual return provided for pursuant to (1) hereof, but in no event, however, shall the total increase ordered for a succeeding twelve-month period be more than an additional three per centum of the maximum rent in effect on the effective date of the original order of adjustment unless a new application be filed by the landlord. The commission shall compile and make available for public inspection at reasonable hours at its principal office and at each appropriate local office, and shall file with the chairman of the temporary state commission to study rents and rental conditions the manual of accounting procedures and advisory bulletins applicable to applications under (1), (2) and (3) hereof, and all amendments thereto. (c) 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 commission shall give due consideration (1) to all previous adjustments or increases in maximum rents by lease or otherwise; and (2) 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 that there is allocated to the controlled housing accommodations therein only that portion of the amount of increase necessary pursuant to (1), (2) or (3) of paragraph (a) of subdivision four hereof, as is properly attributable to such controlled accommodations. (d) No landlord shall be entitled to any increase in the maximum rent unless he certifies that he 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 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 in any case where a municipal department having jurisdiction certifies 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. (e) Before ordering any adjustment in maximum rents, a reasonable opportunity to be heard thereon shall be accorded the tenant and the landlord. 5. (a) Whenever in the judgment of the commission such action is necessary or proper in order to effectuate the purposes of this act, the commission 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 the commission are equivalent to or are likely to result in rent increases inconsistent with the purposes of this act. (b) Whenever in the judgment of the commission such action is necessary or proper in order to effectuate the purposes of this act, the commission 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 the commission shall have power by regulation or order to decrease the maximum rent for any housing accommodation with respect to which a maximum rent is in effect, pursuant to this act if it shall find that the living space, essential services, furniture, furnishings or equipment to which the tenant was entitled on such date has been decreased. The amount of the decrease in maximum rent ordered by the commission 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. (c) Whenever any municipal department 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 commission may issue an order decreasing the maximum rent of such housing accommodation in such amount as it deems necessary or proper, until the said municipal department has certified that the illegal or hazardous condition has been removed. 6. 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 and reasonable exceptions as in the judgment of the commission are necessary or proper in order to effectuate the purposes of this act. No increase or decrease in maximum rent shall be effective prior to the date on which the order therefor is issued.
7. Regulations, orders, and requirements under this act may contain such provisions as the commission deems necessary to prevent the circumvention or evasion thereof. 8. The powers granted in this section shall not be used or made to operate to compel changes in established rental practices, except where such action is affirmatively found by the commission to be necessary to prevent circumvention or evasion of any regulation, order, or requirements under this act. * NB Effective until June 16, 2011 * § 5. Evictions. 1. So long as the tenant continues to pay the rent to which the landlord is entitled, no tenant shall be removed from any housing accommodation with respect to which a maximum rent is in effect pursuant to this act 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 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 two of this section: (a) the tenant is violating a substantial obligation of his 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 (b) 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 accommodations; or his conduct is such as to interfere substantially with the comfort or safety of the landlord or of other tenants or occupants of the same or other adjacent building or structure; or (c) occupancy of the housing accommodations by the tenant is illegal because of the requirements of law, and the landlord is subject to civil or criminal penalties therefor, or both; or (d) the tenant is using or permitting such housing accommodation to be used for an immoral or illegal purpose; or (e) the tenant who had a written lease or other written rental agreement which terminates 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 act; or (f) the tenant has unreasonably refused the landlord access to the housing accommodations for the purpose of making necessary repairs or improvements required by law or for the purpose of inspection or of showing the accommodations 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 accommodations is contrary to the provisions of the tenant's lease or other rental agreement. 2. No tenant shall be removed or evicted on grounds other than those stated in subdivision one of this section unless on application of the
landlord the commission shall issue an order granting a certificate of eviction in accordance with its rules and regulations, designed to effectuate the purposes of this act, permitting the landlord to pursue his remedies at law. The commission shall issue such an order whenever it finds that: (a) the landlord seeks in good faith to recover possession of housing accommodations because of immediate and compelling necessity for his own personal use and occupancy or for the use and occupancy of his immediate family; provided, however, this subdivision 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 twenty 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; or (b) the landlord seeks in good faith to recover possession of housing accommodations 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 accommodations 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 dwelling; or (c) the landlord seeks in good faith to recover possession of the housing accommodations for the immediate purpose of substantially altering or remodeling them, provided that the landlord shall have secured such approval therefor as is required by law and the commission determines that the issuance of the order granting the certificate of eviction is not inconsistent with the purpose of this act; or (d) the landlord seeks in good faith to recover possession of the housing accommodations for the immediate purpose of demolishing them and the commission determines (i) that such demolition is to be used for the purpose of constructing new buildings or structures containing at least twenty per centum more housing accommodations consisting of self-contained family units than are contained in the structure to be demolished; provided, however, 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 the local authorities having jurisdiction over such matters and the cost of removing such violations would substantially equal or exceed the assessed valuation of the structure, the new buildings or structures shall only be required to make provision for a greater number of housing accommodations consisting of self-contained family units than are contained in the structure to be demolished; provided, further, that the commission may by regulation impose as a condition to granting the certificates of eviction that the landlord pay stipends to the tenants in such amounts as the commission may determine to be reasonably necessary, which amounts may vary depending upon the size of the tenant's apartment and whether the tenant accepts relocation by the landlord; or (ii) that such demolition is made for the purpose of constructing new buildings or structures other than housing accommodations; provided, however, that within the city of New York the commission may by regulation impose conditions (including but not limited to suitable relocation and the payment of stipends) to granting the certificates of eviction. No order granting the certificates of eviction pursuant to this paragraph shall be issued unless the landlord shall have secured such approval therefor as is required by law and the
commission determines that the issuance of such order is not inconsistent with the purpose of this act. 3. The commission may from time to time to effectuate the purposes of this act adopt, promulgate, amend or rescind such rules, regulations or orders as it may deem necessary or proper for the control of evictions. It may 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 a maximum rent under this act upon the grounds specified in subdivision two of this section or where it finds that the requested removal or eviction is not inconsistent with the purposes of this act and would not be likely to result in the 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 one of this section. The commission on its own initiative or on application of a tenant may revoke or cancel an order granting such 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. The commencement of a proceeding by the commission 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 commission 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. 4. Notwithstanding the preceding provisions of this section, the state, any municipality, or housing authority may nevertheless 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. 5. Any order of the commission under this section granting a certificate of eviction shall be subject to judicial review only in the manner prescribed by sections eight and nine. 6. Where after the commission has granted a certificate of eviction certifying that the landlord may pursue his remedies pursuant to local 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 accommodations (1) for his immediate and personal use, or for the immediate and personal use by a member or members of his immediate family, and such landlord or members of his immediate family shall fail to occupy such accommodations 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 (2) for the immediate purpose of withdrawing such housing accommodations from the rental market and such landlord shall lease or sell the housing accommodation or the space previously occupied thereby, or permit use ther