S T A T E   O F   N E W   Y O R K
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                                  10336

                          I N  A S S E M B L Y

                              May 23, 2016
                               ___________

Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Real Property Taxation

AN ACT to amend the real property tax law, in relation to establishing a
  tax abatement for rent-controlled and rent regulated property occupied
  by persons with student debt

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 485-s to read as follows:
  S 485-S. TAX ABATEMENT FOR RENT-CONTROLLED AND RENT REGULATED PROPERTY
OCCUPIED  BY  PERSONS WITH STUDENT DEBT. 1. DEFINITIONS. AS USED IN THIS
SECTION:
  A. "DWELLING UNIT" MEANS THAT PART OF A DWELLING IN WHICH  A  HEAD  OF
THE HOUSEHOLD RESIDES AND WHICH IS SUBJECT TO EITHER THE EMERGENCY HOUS-
ING  RENT  CONTROL LAW OR TO THE RENT AND REHABILITATION LAW OF THE CITY
OF NEW YORK ENACTED PURSUANT TO THE LOCAL EMERGENCY HOUSING RENT CONTROL
LAW, OR TO THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR;
  B. "HEAD OF THE HOUSEHOLD" MEANS A PERSON (I) WHO IS TWENTY-ONE  YEARS
OF AGE OR OLDER, AND (II) IS ENTITLED TO THE POSSESSION OR TO THE USE OR
OCCUPANCY OF A DWELLING UNIT;
  C.  "INCOME"  MEANS  INCOME  FROM  ALL  SOURCES AFTER DEDUCTION OF ALL
INCOME AND SOCIAL  SECURITY  TAXES  AND  INCLUDES  SOCIAL  SECURITY  AND
RETIREMENT  BENEFITS,  SUPPLEMENTAL SECURITY INCOME AND ADDITIONAL STATE
PAYMENTS, PUBLIC ASSISTANCE BENEFITS, INTEREST,  DIVIDENDS,  NET  RENTAL
INCOME,  SALARY  OR  EARNINGS,  AND NET INCOME FROM SELF-EMPLOYMENT, BUT
SHALL NOT INCLUDE GIFTS OR INHERITANCES, PAYMENTS  MADE  TO  INDIVIDUALS
BECAUSE  OF  THEIR  STATUS AS VICTIMS OF NAZI PERSECUTION, AS DEFINED IN
P.L.   103-286, PAYMENTS MADE IN  STRICT  COMPLIANCE  WITH  THE  FEDERAL
"INCOME  BASED  REPAYMENT PLAN" OR "PAY AS YOU EARN" PLAN", OR INCREASES
IN BENEFITS ACCORDED PURSUANT TO THE SOCIAL SECURITY ACT OR A PUBLIC  OR
PRIVATE  PENSION  PAID TO ANY MEMBER OF THE HOUSEHOLD WHICH INCREASE, IN
ANY GIVEN YEAR, DOES NOT EXCEED THE  CONSUMER  PRICE  INDEX  (ALL  ITEMS
UNITED  STATES  CITY  AVERAGE) FOR SUCH YEAR WHICH TAKE EFFECT AFTER THE
DATE OF ELIGIBILITY OF HEAD OF THE HOUSEHOLD  RECEIVING  BENEFITS  HERE-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD13753-01-6

A. 10336                            2

UNDER  WHETHER RECEIVED BY THE HEAD OF THE HOUSEHOLD OR ANY OTHER MEMBER
OF THE HOUSEHOLD;
  D. "INCOME TAX YEAR" MEANS A TWELVE MONTH PERIOD FOR WHICH THE HEAD OF
THE  HOUSEHOLD FILED A FEDERAL PERSONAL INCOME TAX RETURN, OR IF NO SUCH
RETURN IS FILED, THE CALENDAR YEAR;
  E. "INCREASE IN MAXIMUM  RENT  OR  LEGAL  REGULATED  RENT"  MEANS  ANY
INCREASE  IN THE MAXIMUM RENT OR THE LEGAL REGULATED RENT FOR THE DWELL-
ING UNIT IN QUESTION PURSUANT TO THE APPLICABLE RENT CONTROL LAW  OR  TO
THE  EMERGENCY  TENANT  PROTECTION ACT OF NINETEEN SEVENTY-FOUR, RESPEC-
TIVELY, OR SUCH CLASSES OF INCREASE THEREUNDER AS MAY BE SPECIFIED IN  A
LOCAL  LAW,  ORDINANCE  OR  RESOLUTION ENACTED PURSUANT TO THIS SECTION,
OVER SUCH BASE PERIOD RENT AS SHALL BE PROVIDED THEREIN OR AN  EXEMPTION
FROM  THE MAXIMUM RENT OR LEGAL REGULATED RENT AS SPECIFIED IN PARAGRAPH
B OR C OF SUBDIVISION THREE OF THIS SECTION;
  F. "MEMBERS OF THE HOUSEHOLD" MEANS THE HEAD OF THE HOUSEHOLD AND  ANY
PERSON,  OTHER  THAN A BONA FIDE ROOMER, BOARDER OR SUBTENANT WHO IS NOT
RELATED TO THE HEAD OF THE HOUSEHOLD, PERMANENTLY RESIDING IN THE DWELL-
ING UNIT.
  2. THE GOVERNING BODY OF ANY MUNICIPAL CORPORATION IS  HEREBY  AUTHOR-
IZED  AND  EMPOWERED  TO ADOPT, AFTER PUBLIC HEARING, IN ACCORDANCE WITH
THE PROVISIONS OF THIS SECTION, A LOCAL  LAW,  ORDINANCE  OR  RESOLUTION
PROVIDING  FOR  THE  ABATEMENT  OF  TAXES  OF SAID MUNICIPAL CORPORATION
IMPOSED ON REAL PROPERTY CONTAINING A DWELLING UNIT AS DEFINED HEREIN BY
THE FOLLOWING AMOUNT: WHERE THE HEAD OF THE HOUSEHOLD DOES NOT RECEIVE A
MONTHLY ALLOWANCE FOR SHELTER PURSUANT TO THE SOCIAL  SERVICES  LAW,  AN
AMOUNT  NOT IN EXCESS OF THAT PORTION OF ANY INCREASE IN MAXIMUM RENT OR
LEGAL REGULATED RENT WHICH CAUSES SUCH MAXIMUM RENT OR  LEGAL  REGULATED
RENT  TO  EXCEED  ONE-THIRD OF THE COMBINED INCOME OF ALL MEMBERS OF THE
HOUSEHOLD.
  3. ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL PROVIDE THAT:
  A. FOR A DWELLING UNIT WHERE THE HEAD OF THE  HOUSEHOLD  IS  A  PERSON
TWENTY-ONE  YEARS  OF AGE OR OLDER, NO TAX ABATEMENT SHALL BE GRANTED IF
THE COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD FOR THE  INCOME  TAX
YEAR IMMEDIATELY PRECEDING THE DATE OF MAKING APPLICATION EXCEEDS EIGHTY
THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND SEVENTEEN, AS MAY BE
PROVIDED  BY  THE LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO
THIS SECTION.
  B. UPON ISSUANCE OF A TAX ABATEMENT CERTIFICATE AS PROVIDED IN  SUBDI-
VISION  FOUR  OF  THIS SECTION, THE AMOUNT SET FORTH IN SAID CERTIFICATE
SHALL BE DEDUCTED FROM THE LEGAL MAXIMUM RENT OR  LEGAL  REGULATED  RENT
CHARGEABLE FOR A DWELLING UNIT OF A HEAD OF THE HOUSEHOLD.
  C.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, WHEN A HEAD OF THE
HOUSEHOLD TO WHOM A THEN CURRENT, VALID TAX  ABATEMENT  CERTIFICATE  HAS
BEEN  ISSUED  MOVES  HIS PRINCIPAL RESIDENCE FROM ONE DWELLING UNIT TO A
SUBSEQUENT DWELLING UNIT LOCATED WITHIN THE SAME MUNICIPAL  CORPORATION,
THE  HEAD  OF  THE  HOUSEHOLD  MAY APPLY FOR A TAX ABATEMENT CERTIFICATE
RELATING TO THE SUBSEQUENT  DWELLING  UNIT,  AND  SUCH  CERTIFICATE  MAY
PROVIDE  THAT THE HEAD OF THE HOUSEHOLD SHALL BE EXEMPT FROM PAYING THAT
PORTION OF THE MAXIMUM RENT OR LEGAL REGULATED RENT FOR  THE  SUBSEQUENT
DWELLING UNIT WHICH IS THE LEAST OF THE FOLLOWING:
  (1)  THE  AMOUNT  BY  WHICH  THE RENT FOR THE SUBSEQUENT DWELLING UNIT
EXCEEDS THE LAST RENT, AS REDUCED, WHICH THE HEAD OF THE  HOUSEHOLD  WAS
REQUIRED TO ACTUALLY PAY IN THE ORIGINAL DWELLING UNIT;
  (2)  THE LAST AMOUNT DEDUCTED FROM THE MAXIMUM RENT OR LEGAL REGULATED
RENT PURSUANT TO THIS SECTION IN THE ORIGINAL DWELLING UNIT; OR

A. 10336                            3

  (3) WHERE THE HEAD OF THE HOUSEHOLD DOES NOT RECEIVE A MONTHLY  ALLOW-
ANCE  FOR  SHELTER  PURSUANT  TO  THE SOCIAL SERVICES LAW, THE AMOUNT BY
WHICH THE MAXIMUM RENT OR LEGAL REGULATED RENT OF THE SUBSEQUENT  DWELL-
ING  UNIT EXCEEDS ONE-THIRD OF THE COMBINED INCOME OF ALL MEMBERS OF THE
HOUSEHOLD,  EXCEPT  THAT  THIS SUBPARAGRAPH SHALL NOT APPLY TO A HEAD OF
THE HOUSEHOLD WHO HAS BEEN GRANTED A RENT INCREASE EXEMPTION ORDER  THAT
IS IN EFFECT AS OF JANUARY FIRST, TWO THOUSAND SEVENTEEN OR TAKES EFFECT
ON OR BEFORE JULY FIRST, TWO THOUSAND SEVENTEEN.
  D.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, WHEN A HEAD OF THE
HOUSEHOLD TO WHOM A THEN CURRENT, VALID TAX  ABATEMENT  CERTIFICATE  HAS
BEEN ISSUED MOVES HIS PRINCIPAL RESIDENCE FROM ONE DWELLING UNIT SUBJECT
TO  THE  PROVISIONS  OF  ARTICLES II, IV, V OR XI OF THE PRIVATE HOUSING
FINANCE LAW TO A SUBSEQUENT DWELLING UNIT SUBJECT TO  EITHER  THE  LOCAL
EMERGENCY HOUSING RENT CONTROL LAW OR TO THE EMERGENCY TENANT PROTECTION
ACT  OF NINETEEN SEVENTY-FOUR WHICH IS LOCATED WITHIN THE SAME MUNICIPAL
CORPORATION, THE HEAD OF THE HOUSEHOLD MAY APPLY  FOR  A  TAX  ABATEMENT
CERTIFICATE  RELATING  TO THE SUBSEQUENT DWELLING UNIT, AND SUCH CERTIF-
ICATE MAY PROVIDE THAT THE HEAD OF THE HOUSEHOLD SHALL  BE  EXEMPT  FROM
PAYING  THAT PORTION OF THE MAXIMUM RENT OR LEGAL REGULATED RENT FOR THE
SUBSEQUENT DWELLING UNIT WHICH IS THE LEAST OF THE FOLLOWING:
  (1) THE AMOUNT BY WHICH THE RENT  FOR  THE  SUBSEQUENT  DWELLING  UNIT
EXCEEDS  THE  LAST  RENT, AS SO REDUCED, WHICH THE HEAD OF THE HOUSEHOLD
WAS REQUIRED TO ACTUALLY PAY IN THE ORIGINAL DWELLING UNIT;
  (2) THE MOST RECENT AMOUNT SO DEDUCTED FROM THE MAXIMUM RENT OR  LEGAL
REGULATED RENT IN THE ORIGINAL DWELLING UNIT; OR
  (3)  WHERE THE HEAD OF THE HOUSEHOLD DOES NOT RECEIVE A MONTHLY ALLOW-
ANCE FOR SHELTER PURSUANT TO THE SOCIAL  SERVICES  LAW,  THE  AMOUNT  BY
WHICH  THE MAXIMUM RENT OR LEGAL REGULATED RENT OF THE SUBSEQUENT DWELL-
ING UNIT EXCEEDS ONE-THIRD OF THE COMBINED INCOME OF ALL MEMBERS OF  THE
HOUSEHOLD,  EXCEPT  THAT  THIS SUBPARAGRAPH SHALL NOT APPLY TO A HEAD OF
THE HOUSEHOLD WHO HAS BEEN GRANTED A RENT INCREASE EXEMPTION ORDER  THAT
IS IN EFFECT AS OF JANUARY FIRST, TWO THOUSAND SEVENTEEN OR TAKES EFFECT
ON OR BEFORE JULY FIRST, TWO THOUSAND SEVENTEEN.
  E.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, WHEN A DWELLING UNIT
SUBJECT TO REGULATION UNDER THE NEW YORK CITY  RENT  AND  REHABILITATION
LAW  OR  THE RENT STABILIZATION LAW OF THE CITY OF NEW YORK IS RECLASSI-
FIED BY ORDER OF THE CITY RENT AGENCY SUBJECT TO THE OTHER LAW,  A  HEAD
OF  THE  HOUSEHOLD  WHO  HELD  A VALID EDUCATION RENT INCREASE EXEMPTION
ORDER AT THE TIME OF SUCH RECLASSIFICATION MAY BE ISSUED A RENT INCREASE
EXEMPTION ORDER UNDER THE APPROPRIATE LAW CONTINUING THE EXEMPTION HE OR
SHE WOULD HAVE BEEN  ELIGIBLE  AND  ENTITLED  TO,  NOTWITHSTANDING  SUCH
RECLASSIFICATION  OF  SUCH  DWELLING UNIT AND THE TENANT SHALL BE EXEMPT
FROM PAYING THE RENT INCREASE TO THE EXTENT  TO  WHICH  HE  OR  SHE  WAS
OTHERWISE  ELIGIBLE  AND  ENTITLED  TO  BE  EXEMPTED  AT THE TIME OF THE
INCREASE BUT FOR THE FACT OF SUCH RECLASSIFICATION OF THE DWELLING  UNIT
INCLUDING  EXEMPTION FROM THE RENT INCREASE GRANTED PURSUANT TO SUBPARA-
GRAPH (M) OF PARAGRAPH ONE OF SUBDIVISION G OF  SECTION  26-405  OF  THE
ADMINISTRATIVE CODE OF THE CITY OF NEW YORK TO THE EXTENT THAT IT IS NOT
PREDICATED  UPON  ANY  IMPROVEMENT OR ADDITION IN A CATEGORY AS PROVIDED
FOR IN SUBPARAGRAPH (D), (E), (F), (G), (H) OR (I) OF SUCH PARAGRAPH.
  (1) A HEAD OF THE HOUSEHOLD WHO IS OTHERWISE ELIGIBLE FOR EXEMPTION AT
THE TIME OF THE RENT INCREASE AND RESIDES IN A DWELLING UNIT SUBJECT  TO
REGULATION  UNDER  THE  EMERGENCY  HOUSING  RENT CONTROL LAW OR THE RENT
STABILIZATION LAW OF THE CITY OF NEW YORK WHICH  HAS  BEEN  RECLASSIFIED
UNDER THE OTHER LAW, MAY BE ISSUED A RENT INCREASE EXEMPTION ORDER UNDER
THE  APPROPRIATE  LAW EXEMPTING THE TENANT FROM PAYING THE RENT INCREASE

A. 10336                            4

TO THE EXTENT TO WHICH HE OR SHE WOULD HAVE BEEN ELIGIBLE  AND  ENTITLED
TO  BE  EXEMPTED  BUT  FOR  THE FACT OF RECLASSIFICATION OF THE DWELLING
UNITS INCLUDING EXEMPTION FROM THE RENT  INCREASE  GRANTED  PURSUANT  TO
SUBPARAGRAPH  (M) OF PARAGRAPH ONE OF SUBDIVISION G OF SECTION 26-405 OF
THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK TO THE EXTENT THAT IT IS
NOT PREDICATED UPON  ANY  IMPROVEMENT  OR  ADDITION  IN  A  CATEGORY  AS
PROVIDED  FOR  IN  SUBPARAGRAPH  (D),  (E), (F), (G), (H) OR (I) OF SUCH
PARAGRAPH.
  (2) APPLICATION FOR AN EXEMPTION ORDER SHALL  BE  MADE  WITHIN  NINETY
DAYS  FROM  THE DATE OF THE RENT INCREASE AND RECLASSIFICATION OR WITHIN
NINETY DAYS OF THE EFFECTIVE DATE OF THIS PARAGRAPH, WHICHEVER IS LATER,
AND THE RENT INCREASE EXEMPTION ORDER SHALL TAKE EFFECT AS OF THE EFFEC-
TIVE DATE OF THE RENT INCREASE AND RECLASSIFICATION INCLUDING ANY RETRO-
ACTIVE INCREMENTS PURSUANT TO SUCH RENT INCREASE.
  4. THE HEAD OF THE HOUSEHOLD MUST APPLY EVERY TWO YEARS TO THE  APPRO-
PRIATE  RENT CONTROL AGENCY OR ADMINISTRATIVE AGENCY FOR A TAX ABATEMENT
CERTIFICATE ON A FORM PRESCRIBED BY SAID AGENCY. A TAX ABATEMENT CERTIF-
ICATE SETTING FORTH AN AMOUNT NOT IN EXCESS OF THE INCREASE  IN  MAXIMUM
RENT OR LEGAL REGULATED RENT FOR THE TAXABLE PERIOD OR SUCH OTHER AMOUNT
AS  SHALL BE DETERMINED UNDER SUBDIVISION THREE OF THIS SECTION SHALL BE
ISSUED BY SAID AGENCY TO EACH HEAD OF THE HOUSEHOLD WHO IS FOUND  TO  BE
ELIGIBLE UNDER THIS SECTION ON OR BEFORE THE LAST DATE PRESCRIBED BY LAW
FOR  THE  PAYMENT  OF  THE TAXES OR THE FIRST INSTALLMENT THEREOF OF ANY
MUNICIPAL CORPORATION WHICH HAS GRANTED AN ABATEMENT OF TAXES. COPIES OF
SUCH CERTIFICATE SHALL BE ISSUED TO  THE  OWNER  OF  THE  REAL  PROPERTY
CONTAINING  THE  DWELLING  UNIT  OF THE HEAD OF THE HOUSEHOLD AND TO THE
COLLECTING OFFICER CHARGED WITH THE DUTY OF COLLECTING THE TAXES OF EACH
MUNICIPAL CORPORATION WHICH HAS GRANTED THE ABATEMENT OF  TAXES  AUTHOR-
IZED BY THIS SECTION.
  5.  THE  AMOUNT  SET  FORTH  IN  A  TAX ABATEMENT CERTIFICATE SHALL BE
DEDUCTED FROM THE TOTAL TAXES LEVIED BY OR ON BEHALF  OF  THE  MUNICIPAL
CORPORATION WHICH HAS GRANTED SUCH ABATEMENT ON REAL PROPERTY CONTAINING
THE DWELLING UNIT OF A HEAD OF THE HOUSEHOLD TO WHOM THE CERTIFICATE HAS
BEEN ISSUED. IN THE EVENT THAT BOTH A TOWN AND A VILLAGE INCLUDED THERE-
IN  GRANT  SUCH  ABATEMENT, SUCH DEDUCTION FOR PROPERTIES LOCATED IN THE
VILLAGE SHALL BE MADE FIRST FROM TAXES LEVIED BY OR  ON  BEHALF  OF  THE
VILLAGE AND ANY EXCESS THEREOF SHALL BE DEDUCTED FROM TOWN TAXES.
  6.  UPON THE VACANCY OF A DWELLING UNIT FOR WHICH AN ABATEMENT CERTIF-
ICATE HAS BEEN ISSUED, THE OWNER THEREOF SHALL REMIT A PRO RATA  PORTION
OF  THE  TAX ABATEMENT TO THE COLLECTING OFFICER OF THE MUNICIPAL CORPO-
RATION WHICH GRANTED SUCH ABATEMENT AND ANY AMOUNT DUE BY REASON OF SUCH
VACANCY SHALL BE A LIEN UPON THE PROPERTY ON AND AFTER THE DATE OF  SUCH
VACANCY.
  7.  WHERE A TAX ABATEMENT CERTIFICATE HAS BEEN ISSUED TO A HEAD OF THE
HOUSEHOLD AS AUTHORIZED BY A LOCAL LAW, ORDINANCE OR RESOLUTION  ADOPTED
PURSUANT  TO  THIS  SECTION  AND  THE  LANDLORD  COLLECTS OR ATTEMPTS TO
COLLECT ALL OR PART OF THE AMOUNT COVERED BY SUCH TAX ABATEMENT  CERTIF-
ICATE,  THE  AMOUNT  OF SUCH ABATEMENT SHALL BE DEEMED A RENT OVERCHARGE
UNDER THE APPLICABLE RENT CONTROL OR RENT REGULATION LAW.
  8. IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, ANY SUCH  LOCAL
LAW,  ORDINANCE  OR  RESOLUTION  MAY  PROVIDE  THAT IN THE EVENT THE TAX
ABATEMENT CERTIFICATE AUTHORIZES AN AMOUNT OF DEDUCTION IN EXCESS OF THE
REAL ESTATE QUARTERLY INSTALLMENT, THEN THE BALANCE MAY  BE  APPLIED  TO
ANY  SUBSEQUENT  INSTALLMENT  UNTIL  EXHAUSTED,  PROVIDED  THAT,  AT THE
REQUEST OF THE OWNER, SUCH BALANCE SHALL BE PAID TO THE OWNER IN LIEU OF
BEING APPLIED TO ANY SUBSEQUENT INSTALLMENT, EXCEPT WHERE THE  OWNER  IS

A. 10336                            5

IN  ARREARS IN THE PAYMENT OF REAL ESTATE TAXES ON ANY PROPERTY. FOR THE
PURPOSES OF SUCH PROVISION OF ANY SUCH LOCAL LAW,  ORDINANCE  OR  RESOL-
UTION,  WHERE  THE  OWNER  IS A CORPORATION, IT SHALL BE DEEMED TO BE IN
ARREARS  WHEN ANY OFFICER, DIRECTOR OR ANY PERSON HOLDING AN INTEREST IN
MORE THAN TEN PERCENT OF THE ISSUED AND OUTSTANDING STOCK OF SUCH CORPO-
RATION IS IN ARREARS IN THE PAYMENT OF REAL ESTATE TAXES ON ANY  PROPER-
TY; WHERE TITLE IS HELD BY A NOMINEE, THE OWNER SHALL BE DEEMED TO BE IN
ARREARS  WHEN  THE  PERSON  FOR  WHOSE  BENEFIT SUCH TITLE IS HELD IS IN
ARREARS IN THE PAYMENT OF REAL ESTATE TAXES ON ANY PROPERTY.
  S 2. The provisions of section 485-s of the real property tax law,  as
added by section one of this act shall apply only to an individual who:
  a. is a citizen of the United States or is a legal non-citizen;
  b. is a legal resident of the state of New York and has resided in the
state of New York for at least twelve continuous months;
  c. has earned no higher than a bachelor's degree at the time of appli-
cation for the tax exemption; and
  d.  is  enrolled in the federal Income Based Repayment plan or the Pay
As You Earn plan.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.