Senate Bill S1382

                                 BILL NUMBER:  S1382               REVISED 03/31/10

 TITLE OF BILL :
An act to amend the real property tax law, in relation to the income
level for the applicability of the senior citizens' rent increase
exemption


 PURPOSE OR GENERAL IDEA OF BILL :
Reduces from one-third to one-fourth of income the applicability of
the senior citizen's rent increase exemption.

 SUMMARY OF SPECIFIC PROVISIONS :
One of the criteria that must be met in order to be eligible for the
senior citizen's rent increase exemption (SCRIE) deals with household
income. At least one-third of a senior's income must be used for rent
in order to be eligible for SCRIE. This criteria would be lowered to
include seniors who pay at least one-fourth of their income for rent.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :
Subdivision 2 and subparagraph 3 of paragraph d of subdivision 3 of
section 467-b of the real property tax law, as amended by chapter 747
of the laws of 1985, and subparagraph 3 of paragraph d of subdivision
3 as amended by section 1 of chapter 188 of the laws of 2005 are
amended.

              

 JUSTIFICATION :
SCRIE was established in 1979 to allow senior citizens an exemption
from rent increases if specific criteria are met. They must reside in
rent controlled, rent stabilized or Mitchell-Lama housing, be at least
62 years of age, have household incomes of no more than $29,000 (as of
July 1, 2009 per NYC DHCR fact sheet} and pay at least one-third of
their income for rent. The problem lies in the requirement that
one-third of household income be used for rent.  Many seniors do not
meet that requirement and are subject to high rents and rent
increases. This bill will lower the requirement to one-fourth and
allow more seniors to become eligible for SCRIE.

 PRIOR LEGISLATIVE HISTORY : This legislation was previously
introduced.

 FISCAL IMPLICATION FOR STATE AND LOCAL GOVERNMENTS :
A fiscal note received on May 4, 2009 from the State of New York,
Executive Department, Office of Real Property Services states:

The SCRIE program is currently active in New York City, six
municipalities in Nassau County, and thirteen municipalities in
Westchester County. The estimated fiscal impact of the proposed
legislation is based primarily from data obtained from the 2008 New
York City Housing and Vacancy Survey, as well as from the city's
annual Report of Tax Expenditure.  Comparable data are not available
from other municipalities.

It is estimated that an additional 7,000 households in New York City
could become eligible for SCRIE if the proposed legislation becomes
law.  According to the City's Office of Management and Budget, when
these benefits are fully phased in over an estimated 20 year period
(the life expectancy of the newly eligible senior head of household),
SCRIE payments to landlords by the City of New York would increase by
approximately $50 million as a result of this program change.

It is not possible to estimate the impact of this program change for
the other affected municipalities, but it would have similar effects,
in that tenants having comparatively low based rents would qualify for
the SCRIE program, with corresponding abatement of taxes by the
effected municipalities to the affected landlords.
 EFFECTIVE DATE :
This act shall take effect immediately; provided that the amendments
made to section 467-b of the real property tax law by section one of
this act shall not affect the expiration of and shall expire
therewith.