BILL NUMBER:  S5881

 TITLE OF BILL :  An act to amend the administrative code of the city
of New York, in relation to providing for retroactivity to an original
date of eligibility for the senior citizens rent increase exemption
(SCRIE)

 PURPOSE OR GENERAL IDEA OF BILL :

To provide retroactivity to the original date of eligibility for the
senior citizens rent increase exemption.

 SUMMARY OF PROVISIONS :

Section one provides the short title - the "senior citizens rent
increase exemption (SCRIE) rollback act"

Section two amends Subsection 26-605 of the administrative code of the
city of New York by adding subdivision (c-1). Subdivision (c-1) allows
for any eligible head of household who failed to make timely
application for a rent increase exemption order pursuant to
subdivisions (a) and (b) of this section to have their application
deemed to have occurred on the original date of eligibility and
receive a rent reduction that is retroactive to the original date of
eligibility.

              

Section three provides the effective date.

 JUSTIFICATION :

The Senior Citizen Rent Increase Exemption (SCRIE) program was
established in 1970 to provide rent exemptions to senior citizens
impacted by rent increases. Under the SCRIE program, eligible
applicants age 62 and older begin to have their rent frozen on the
first day of the month that their application is received. Also as a
provision, the SCRIE program reimburses landlords with real property
tax credits equal to the amount in forgone rent.

Under existing state law, municipalities have the option to provide
the SCRIE program for its senior citizens and decide on the income
eligibility requirements. In New York City, one of 18 municipalities
that offer the SCRIE program, applicants must have an annual income of
$29,000 or less to be considered. Rising living costs have brought
forth rent increases in rent-stabilized and rent-controlled
apartments, and rent-regulated hotel units at a yearly rate of 3.75
percent for a one-year lease and 7.25 percent for a two year lease.

According to the New York City Department of Finance, 47,475 senior
citizen renters were benefiting from the SCRIE program in 2012. Under
current program standards, SCRIE only begins to freeze rent on the
first day of the month that an application is received regardless of
how far past the eligibility age the applicant is at the time of
acceptance. Anecdotal evidence suggests that many admitted senior
citizens were past the eligibility age at the time of acceptance but
have continued to see their rent increase in the years prior to their
enrollment into the program.

This legislation would enact the "SCRIE Rollback Act of 2013" that
would assure that applicants who enrolled in the SCRIE program
subsequent to their eligibility date will receive a rent reduction
beginning with the date of program eligibility. The SCRIE Rollback Act
of 2013 would ensure that seniors are not priced out of the affordable
housing that has been their home during their golden years.

 PRIOR LEGISLATIVE HISTORY :

(2015-2016) A3137 Referred to aging.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
Immediately.

                                 BILL NUMBER:  S5881A

 TITLE OF BILL :  An act to amend the administrative code of the city
of New York, in relation to providing for retroactivity to an original
date of eligibility for the senior citizens rent increase exemption
(SCRIE) and disability rent increase expiration (DRIE)

 PURPOSE OR GENERAL IDEA OF BILL :

To provide retroactivity to the original date of eligibility for the
Senior Citizens Rent Increase Exemption (SCRIE) and the Disability
Rent Increase Exemption (DRIE) programs.

 SUMMARY OF PROVISIONS :

Section 1: Provides the short title - the "senior citizens rent
increase exemption (SCRIE) and disability rent increase exemption
(DRIE) rollback act".

Section 2: Amends Subsection 26-605 of the administrative code of the
City of New York by adding subdivision (c-1), which allows for any
eligible head of household who failed to make timely application for a
rent increase exemption order pursuant to subdivisions (a) and (b) of
this section to have their application deemed to have occurred on the
original date of eligibility and receive a rent reduction that is
retroactive to the original date of eligibility, up to a maximum
              

look-back period of two years.

Section 3: Sets forth an immediate effective date.

 JUSTIFICATION :

The SCRIE program was established in 1970 to provide rent exemptions
to senior citizens impacted by rent increases. Under the SCRIE
program, eligible applicants age 62 and older have their rent frozen
on the first day of the month following the filing of their original
application. The SCRIE program also reimburses landlords with real
property tax credits equal to the amount in forgone rent.

Likewise, the DRIE program provides an exemption against future rent
increases for eligible disabled persons living in rent-controlled,
rent-stabilized, Mitchell-Lama and other eligible apartments,
beginning on the first of the month following approval of the DRIE
application. Landlords of DRIE tenants will also be given tax credits
to make up the difference between the frozen rent and what the DRIE
tenants would be paying without the benefit.

Under existing state law, municipalities have the option to provide
SCRIE and DRIE benefits to individuals with household incomes of up to
$50,000. In New York City in particular, rising living costs have
brought forth rent increases in rent-stabilized and rent-controlled
apartments, and rent regulated hotel units at a yearly rate of 3.75
percent for a one-year lease and 7.25 percent for a two-year lease.

According to the New York City Department of Finance, 47,475 senior
citizen renters were benefiting from the SCRIE program in 2012. Under
current program standards, SCRIE and DRIE only begins to freeze rent
on the first day of the month that an application is received
regardless of how far past the date of original eligibility that the
applicant is at the time of acceptance. Anecdotal evidence suggests
that many senior citizens and individuals with a disability were past
eligibility at the time of acceptance, but had continued to see their
rent increase in the years prior to their enrollment into the program.

To rectify this reoccurring problem, this bill would make sure that
applicants who enrolled in the SCRIE or DRIE programs after their
original date of eligibility will receive a rent reduction beginning
with the first day that they became eligible for such benefits. The
SCRIE and DRIE rollback would ensure that seniors and individuals with
disabilities receive benefits that they were entitled to, even though
they may have not been officially enrolled in the benefit programs
during a period where they were otherwise eligible to apply for them.

 PRIOR LEGISLATIVE HISTORY :

2017 - S.5881 - New Bill
2015-2016 - A.3137 - Referred to Aging.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
Immediately.