BILL NUMBER: S8891
SPONSOR: MARTINS
 
TITLE OF BILL:
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 income eligi-
bility requirements for occupancy of rent-regulated housing accommo-
dations
 
PURPOSE:
To ensure that rent-regulated housing is reserved for low- and moder-
ate-income households by creating an income-based eligibility require-
ment tied to 125 percent of area median income.
 
SUMMARY OF PROVISIONS:
This bill amends the Emergency Tenant Protection Act of 1974, the Emer-
gency Housing Rent Control Law, and the New York City Rent Stabilization
Law to establish that households with income above 125 percent of area
median income are ineligible to occupy any regulated housing accommo-
dation. The bill creates a uniform income eligibility standard applica-
ble across all rent-regulated programs.
The bill directs the Division of Homes and Community Renewal, together
with the Department of Taxation and Finance, to promulgate rules and
regulations necessary to implement income verification procedures.
These regulations must include provisions holding owners and managing
agents harmless for actions taken in good faith reliance on the income
information provided by applicants or tenants.
The bill further establishes a civil penalty, not to exceed $500 per
day, for tenants who willfully provide false income documentation for
the purpose of obtaining or maintaining an ineligible tenancy. This
penalty applies only after a court of competent jurisdiction makes a
determination of willful violation.
The bill includes a ten-year transition period for tenants whose income
exceeded the eligibility threshold prior to the effective date of the
act. During this period, such tenants may not be evicted or penalized
based solely on income. At the conclusion of the ten-year period,
continued occupancy in violation of the income requirements constitutes
grounds for eviction upon a court finding.
For tenants whose income lawfully rises above the threshold after occu-
pation, the bill provides a three-year transition period during which
the tenant may neither be penalized nor evicted on the basis of income.
After the three-year period, continued occupancy in violation of the
income requirement may constitute grounds for eviction upon a court
finding.
The bill also amends succession rules to require that any individual
seeking tenancy through succession, as defined in 28 RCNY § 24-04, must
independently meet the income eligibility standards established by this
act. If the successor's income exceeds 125 percent of area median
income, the application for succession rights must be denied notwith-
standing any other provisions of law.
Finally, the bill directs the Division of Homes and Community Renewal
and the Department of Taxation and Finance to issue any additional rules
and regulations deemed necessary to ensure effective implementation and
enforcement of the act.
 
JUSTIFICATION:
Rent-regulated housing is intended to serve New Yorkers who face the
greatest challenges in securing stable, affordable housing. Without an
income eligibility standard, many above-income households continue to
occupy regulated units, limiting availability for families with genuine
need. Establishing a 125 percent AMI eligibility threshold creates a
fair and objective standard while incorporating long transition periods
to prevent displacement. Enforcement mechanisms reduce fraudulent
reporting, and succession eligibility ensures that regulated units
remain reserved for income-qualified households. This bill strengthens
the integrity of rent regulation and better aligns the system with its
purpose.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
IBD
 
EFFECTIVE DATE:
This act should take effect immediately.