Section 26-504.3. High income rent decontrol

(a) For purposes of this
  section, annual income shall mean the federal adjusted gross  income  as
  reported  on  the  New York state income tax return. Total annual income
  means the sum of the annual incomes  of  all  persons  whose  names  are
  recited  as  the  tenant  or co-tenant on a lease who occupy the housing
  accommodation  and  all  other   persons   that   occupy   the   housing
  accommodation  as  their  primary  residence  on  other than a temporary
  basis, excluding bona fide employees of such occupants residing  therein
  in connection with such employment and excluding bona fide subtenants in
  occupancy pursuant to the provisions of section two hundred twenty-six-b
  of  the  real property law. In the case where a housing accommodation is
  sublet, the annual income of the tenant  or  co-tenant  recited  on  the
  lease who will reoccupy the housing accommodation upon the expiration of
  the sublease shall be considered.
    (b) On or before the first day of May in each calendar year, the owner
  of  each housing accommodation for which the legal regulated rent is two
  thousand dollars or more per month may provide  the  tenant  or  tenants
  residing  therein  with  an  income  certification  form prepared by the
  division of housing and  community  renewal  on  which  such  tenant  or
  tenants  shall  identify  all  persons referred to in subdivision (a) of
  this section and shall certify whether the total  annual  income  is  in
  excess  of  one hundred seventy-five thousand dollars in each of the two
  preceding calendar years. Such income  certification  form  shall  state
  that  the  income  level  certified  to  by the tenant may be subject to
  verification by the department  of  taxation  and  finance  pursuant  to
  section  one  hundred seventy-one-b of the tax law and shall not require
  disclosure  of  any  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 have a legal regulated rent of two thousand dollars
  or  more per month are required to complete the certification form; (ii)
  that tenants have protections available to them which  are  designed  to
  prevent  harassment;  (iii) that tenants are not required to provide any
  information regarding their income except that which is requested on the
  form  and  may  contain  such  other  information  the  division   deems
  appropriate.   The   tenant   or  tenants  shall  return  the  completed
  certification to the owner within thirty days  after  service  upon  the
  tenant  or  tenants.  In  the  event  that  the  total  annual income as
  certified is in excess of one hundred seventy-five thousand  dollars  in
  each  such  year,  the  owner  may file the certification with the state
  division of housing and community renewal on or before June thirtieth of
  such year.  Upon  filing  such  certification  with  the  division,  the
  division  shall,  within  thirty  days  after the filing, issue an order
  providing that such housing accommodation shall not be  subject  to  the
  provisions of this act upon the expiration of the existing lease. A copy
  of  such  order  shall  be  mailed by regular and certified mail, return
  receipt requested, to the tenant or tenants and a copy thereof shall  be
  mailed to the owner.
    (c)  1.  In the event that the tenant or tenants either fail to return
  the completed certification to the owner on or before the date  required
  by   subdivision   (b)  of  this  section  or  the  owner  disputes  the
  certification returned by the tenant or tenants, the owner  may,  on  or
  before  June  thirtieth  of  such  year,  petition the state division of
  housing and community renewal to verify, pursuant to section one hundred
  seventy-one-b of the tax law, whether the total  annual  income  exceeds
  one  hundred  seventy-five thousand dollars in each of the two preceding
  calendar years. Within twenty days after the filing of such request with
  the division, the division shall notify the tenant or tenants  named  on

  the  lease  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 being issued by the division
  providing that such housing accommodation shall not be  subject  to  the
  provisions of this law.
    2. If the department of taxation and finance determines that the total
  annual  income is in excess of one hundred seventy-five thousand dollars
  in each of the two preceding calendar years, the division shall,  on  or
  before  November fifteenth of such year, notify the owner and tenants of
  the results of such verification. Both the owner and the  tenants  shall
  have  thirty  days within which to comment on such verification results.
  Within forty-five days after the expiration of the comment  period,  the
  division  shall,  where  appropriate, issue an order providing that such
  housing accommodation shall not be subject to the provisions of this law
  upon the expiration of the existing lease. A copy of such order shall be
  mailed by regular and certified mail, return receipt requested,  to  the
  tenant or tenants and a copy thereof shall be sent to the owner.
    3.  In the event the tenant or tenants fail to provide the information
  required pursuant to paragraph one of  this  subdivision,  the  division
  shall  issue,  on  or  before  December  first  of  such  year, an order
  providing that such housing accommodation shall not be  subject  to  the
  provisions  of this law upon the expiration of the current lease. A copy
  of such order shall be mailed by  regular  and  certified  mail,  return
  receipt  requested, to the tenant or tenants and a copy thereof shall be
  sent to the owner.
    4. The provisions of the state freedom of information  act  shall  not
  apply  to  any  income  information obtained by the division pursuant to
  this section.
    (d) This section shall apply only to section 26-504.1 of this code.
    (e) Upon receipt of such order of decontrol pursuant to this  section,
  an  owner shall offer the housing accommodation subject to such order to
  the tenant at a rent not in excess of the market  rent,  which  for  the
  purposes  of  this  section  means  a rent obtainable in an arm's length
  transaction. Such rental offer shall be made by the owner in writing  to
  the  tenant  by  certified  and regular mail and shall inform the tenant
  that such offer must be accepted in writing within ten days of  receipt.
  The tenant shall respond within ten days after receipt of such offer. If
  the  tenant  declines  the offer or fails to respond within such period,
  the owner may commence an action or proceeding for the eviction of  such
  tenant.
    * NB Expires April 1, 2012