S 538: Prohibits persons whose income is greater than one hundred twenty-five percent of the area median income from occupying certain housing accommodations.

  
  STATE OF NEW YORK ________________________________________________________________________ 538 2025-2026 Regular Sessions  IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. MARTINS, BORRELLO, RHOADS, ROLISON -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the emergency tenant protection act of nineteen seven- ty-four, the emergency housing rent control law and the administrative code of the city of New York, in relation to establishing tenant eligibility for certain housing accommodations The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 10 of section 4 of chapter 576 of the laws of 1974, 2 constituting the emergency tenant protection act of nineteen seventy- 3 four, is amended by adding a new subdivision d to read as follows: 4 d. Notwithstanding any provisions of law to the contrary, any person, 5 or persons, whose income exceeds one hundred twenty-five percent of area 6 median income shall be ineligible to occupy any housing accommodation 7 subject to this act. 8 (1) The division of homes and community renewal and the department of 9 taxation and finance shall promulgate rules and regulations necessary to 10 implement this subdivision, provided however, such rules and regulations 11 shall include holding the owner, or such owner's agent, of the housing 12 accommodation harmless for any violation of this subdivision. 13 (2) A tenant found by a court of competent jurisdiction to have will- 14 fully violated this subdivision, including, but not limited to, by 15 providing the owner, or such owner's agent false income documentation in 16 an effort to obtain tenancy of the housing accommodation, shall be 17 subject to a civil penalty not to exceed five hundred dollars per day of 18 illegal occupancy, provided however, that a tenant who currently occu- 19 pies a housing accommodation subject to this act, and whose income 20 exceeds the threshold provided in this subdivision, shall be exempt from 21 civil penalties and shall not be evicted on the grounds of a violation EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01762-01-5 
 S. 538 2 1 of this subdivision for the duration of the most recent lease agreement 2 executed prior to the effective date of this subdivision. After the 3 duration of the most recent lease agreement executed prior to the effec- 4 tive date of this subdivision has ended, continued violation of this 5 subdivision by the tenant, as determined by a court of competent juris- 6 diction, shall constitute grounds for eviction. 7 (3) A tenant who lawfully occupies a housing accommodation subject to 8 this act, and whose income increased above one hundred twenty-five 9 percent of area median income, shall be exempt from civil penalties and 10 shall not be evicted on the grounds of a violation of this subdivision 11 for the duration of the most recent lease agreement executed prior to 12 the increase in income. After the duration of the most recent lease 13 agreement executed prior to the increase in income has ended, continued 14 violation of this subdivision by the tenant, as determined by a court of 15 competent jurisdiction, shall constitute grounds for eviction. 16 (4) Any person who inherits tenancy through successorship as defined 17 in section 24-04 of title twenty-eight of the rules of the city of New 18 York, must meet the income eligibility requirements as defined in this 19 subdivision, in order to occupy the housing accommodation. Notwith- 20 standing any other provisions of law, should said person be ineligible 21 as defined in this subdivision, such application for tenancy by succes- 22 sorship shall be denied. 23 § 2. Section 10 of chapter 274 of the laws of 1946, constituting the 24 emergency housing rent control law, is amended by adding a new subdivi- 25 sion 6 to read as follows: 26 6. Notwithstanding any provisions of law to the contrary, any person, 27 or persons, whose income exceeds one hundred twenty-five percent of area 28 median income shall be ineligible to occupy any housing accommodation 29 subject to this act. 30 (a) The division of homes and community renewal and the department of 31 taxation and finance shall promulgate rules and regulations necessary to 32 implement this subdivision, provided however, such rules and regulations 33 shall include holding the owner, or such owner's agent, of the housing 34 accommodation harmless for any violation of this subdivision. 35 (b) A tenant found by a court of competent jurisdiction to have will- 36 fully violated this subdivision, including but not limited to, by 37 providing the owner, or such owner's agent false income documentation in 38 an effort to obtain tenancy of the housing accommodation, shall be 39 subject to a civil penalty not to exceed five hundred dollars per day of 40 illegal occupancy, provided however, that a tenant who currently occu- 41 pies a housing accommodation subject to this act, and whose income 42 exceeds the threshold provided in this subdivision, shall be exempt from 43 civil penalties and shall not be evicted on the grounds of a violation 44 of this subdivision for the duration of the most recent lease agreement 45 executed prior to the effective date of this subdivision. After the 46 duration of the most recent lease agreement executed prior to the effec- 47 tive date of this subdivision has ended, continued violation of this 48 subdivision by the tenant, as determined by a court of competent juris- 49 diction, shall constitute grounds for eviction. 50 (c) A tenant who lawfully occupies a housing accommodation subject to 51 this act, and whose income increased above one hundred twenty-five 52 percent of area median income, shall be exempt from civil penalties and 53 shall not be evicted on the grounds of a violation of this subdivision 54 for the duration of the most recent lease agreement executed prior to 55 the increase in income. After the duration of the most recent lease 56 agreement executed prior to the increase in income has ended, continued 
 S. 538 3 1 violation of this subdivision by the tenant, as determined by a court of 2 competent jurisdiction, shall constitute grounds for eviction. 3 (d) Any person who inherits tenancy through successorship as defined 4 in section 24-04 of title twenty-eight of the rules of the city of New 5 York, must meet the income eligibility requirements as defined in this 6 subdivision, in order to occupy the housing accommodation. Notwith- 7 standing any other provisions of law, should said person be ineligible 8 as defined in this subdivision, such application for tenancy by succes- 9 sorship shall be denied. 10 § 3. The administrative code of the city of New York is amended by 11 adding a new section 26-418 to read as follows: 12 § 26-418 Means testing. a. The division of homes and community 13 renewal and the department of taxation and finance shall promulgate 14 rules and regulations necessary to implement this section, provided 15 however, such rules and regulations shall include holding the owner, or 16 such owner's agent, of the housing accommodation harmless for any 17 violation of this section. 18 b. A tenant found by a court of competent jurisdiction to have will- 19 fully violated this section, including but not limited to, by providing 20 the owner, or such owner's agent false income documentation in an effort 21 to obtain tenancy of the housing accommodation, shall be subject to a 22 civil penalty not to exceed five hundred dollars per day of illegal 23 occupancy, provided however, that a tenant who currently occupies a 24 housing accommodation subject to the emergency tenant protection act of 25 nineteen seventy-four, and whose income exceeds the threshold provided 26 in this section, shall be exempt from civil penalties and shall not be 27 evicted on the grounds of a violation of this section for the duration 28 of the most recent lease agreement executed prior to the effective date 29 of this section. After the duration of the most recent lease agreement 30 executed prior to the effective date of this subdivision has ended, 31 continued violation of this section by the tenant, as determined by a 32 court of competent jurisdiction, shall constitute grounds for eviction. 33 c. A tenant who lawfully occupies a housing accommodation subject to 34 the emergency tenant protection act of nineteen seventy-four, and whose 35 income increased above one hundred twenty-five percent of area median 36 income, shall be exempt from civil penalties and shall not be evicted on 37 the grounds of a violation of this section for the duration of the most 38 recent lease agreement executed prior to the increase in income. After 39 the duration of the most recent lease agreement executed prior to the 40 increase in income has ended, continued violation of this section by the 41 tenant, as determined by a court of competent jurisdiction, shall 42 constitute grounds for eviction. 43 d. Any person who inherits tenancy through successorship as defined in 44 section 24-04 of title twenty-eight of the rules of the city of New 45 York, must meet the income eligibility requirements as defined in this 46 section, in order to occupy the housing accommodation. Notwithstanding 47 any other provisions of law, should said person be ineligible as defined 48 in this section, such application for tenancy by successorship shall be 49 denied. 50 § 4. Section 26-512 of the administrative code of the city of New York 51 is amended by adding a new subdivision h to read as follows: 52 h. Notwithstanding any provisions of law to the contrary, beginning 53 January first, two thousand twenty-eight, dwelling units subject to this 54 chapter as prescribed in section 26-504 of this chapter shall be rented 55 to persons whose adjusted gross income is less than one hundred twenty- 56 five percent of area median income. 
 S. 538 4 1 (1) The division of homes and community renewal and the department of 2 taxation and finance shall promulgate rules and regulations necessary to 3 implement this subdivision, provided however, such rules and regulations 4 shall include holding the owner of the dwelling unit harmless for any 5 violation of this subdivision. 6 (2) A tenant found by a court of competent jurisdiction to have will- 7 fully violated this paragraph shall be subject to a civil penalty not to 8 exceed five hundred dollars per day of illegal occupancy, provided 9 however, that a tenant who currently occupies a dwelling unit subject to 10 the emergency tenant protection act of nineteen seventy-four, and whose 11 income exceeds the threshold provided in this paragraph, shall be exempt 12 from civil penalties and shall not be evicted on the grounds of a 13 violation of this subdivision for the duration of the most recent lease 14 agreement executed prior to the effective date of this subdivision. 15 After the duration of the most recent lease agreement executed prior to 16 the effective date of this subdivision has ended, continued violation of 17 this subdivision by the tenant, as determined by a court of competent 18 jurisdiction, shall constitute grounds for eviction. 19 (3) A tenant who lawfully occupies a dwelling unit subject to the 20 emergency tenant protection act of nineteen seventy-four, and whose 21 income increased above one hundred twenty-five percent of area median 22 income, shall be exempt from civil penalties and shall not be evicted on 23 the grounds of a violation of this subdivision for the duration of the 24 most recent lease agreement executed prior to the increase in income. 25 After the duration of the most recent lease agreement executed prior to 26 the increase in income has ended, continued violation of this subdivi- 27 sion by the tenant, as determined by a court of competent jurisdiction, 28 shall constitute grounds for eviction. 29 (4) Any person who inherits tenancy through successorship as defined 30 in section 24-04 of title twenty-eight of the rules of the city of New 31 York, must meet the income eligibility requirements as defined in this 32 subdivision, in order to occupy the dwelling unit. Notwithstanding any 33 other provisions of law, should said person be ineligible as defined in 34 this subdivision, such application for tenancy by successorship shall be 35 denied. 36 § 5. The division of homes and community renewal, in conjunction with 37 the department of taxation and finance, shall promulgate rules and regu- 38 lations necessary for the implementation of this act. 39 § 6. This act shall take effect immediately; provided that the addi- 40 tion of section 26-418 of the city rent and rehabilitation law made by 41 section three of this act shall remain in full force and effect only as 42 long as the public emergency requiring the regulation and control of 43 residential rents and evictions continues, as provided in subdivision 3 44 of section 1 of the local emergency housing rent control act; and 45 provided, further that the amendments to section 26-512 of chapter 4 of 46 title 26 of the administrative code of the city of New York made by 47 section four of this act shall expire on the same date as such law 48 expires and shall not affect the expiration of such law as provided 49 under section 26-520 of such law.