NY State Senate Bill 2019-S924

Senate Bill S924

2019-2020 Legislative Session

Grants real property tax abatement to rent-controlled or rent regulated properties when the maximum authorized rent exceeds 1/2 of the tenants' household income

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 09, 2019	referred to investigations and government operations

2019-S924 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§467-b & 467-c, RPT L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5971
2017-2018: S2586

2019-S924 (ACTIVE) - Summary

Authorizes application of the property tax abatement for rent-controlled or rent regulated properties occupied by senior citizens or disabled persons, to those units occupied by tenants paying the maximum allowable rent when such rent exceeds 1/2 of the household income; provides for state payments to cities affected thereby equal to 10% of lost real property tax revenue.

2019-S924 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S924

SPONSOR: YOUNG
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to tax abatements
for dwelling units occupied by certain persons residing in rent-cont-
rolled or rent regulated properties, and providing state aid to cities
affected by such tax abatements

 
SUMMARY OF PROVISIONS:

This legislation would extend the Senior Citizen Rent Increase Exemption
(SCRIE) and the Disability Rent Increase Exemption (DRIE), as well as to
authorize the City of New York to institute a tenant rent increase
exemption program (TRIE), for tenants who pay over 50% of their income
in rent and who reside within rent controlled, rent regulated, and with-
in certain other types of housing incorporated under the private housing
finance law.

 
JUSTIFICATION:

This bill extends the New York City senior citizen rent increase
exemption (SCRIE) and the disability rent increase exemption (DRIE) as
well as expand such program by establishing authority for the tenant
rent increase exemption (TRIE) program.

This program is otherwise known as the NYC Rent Freeze Program, and is
administered by the NYC Department of Finance pursuant to state enabling
legislation. The existing SCRIE and DRIE programs provide that seniors
and the disabled residing in rent controlled, rent stabilized and
certain otherwise limited profit housing, pay no more than 30% of their
income for rent. This program helps eligible seniors (age 62 and over)
and tenants with qualifying disabilities stay in affordable housing by
freezing their rent. The program protects eligible tenants from future
rent increases while providing property owners with tax abatements equal
to the dollar value of the rent increases they are entitled to.

The tenant increase exemption program would operate under the same
general administrative parameters as the existing SCRIE and DRIE
programs, with the state providing 10% of the cost of the revenue loss
of the tax abatement to New York City.

TRIE would target housing assistance to the most assist those low income
individuals and heads of households that shoulder a disproportionate
rent burden and pay over 50% of their income in rent. This program
provides relief to those who, after paying their housing costs, have the
least amount of income left to acquire the necessities of daily living.

 
LEGISLATIVE HISTORY:

2018: S.2586-A Referred to Investigations and Government Operations
2017: S.2586 Referred to Investigations and Government Operations
2016: S.5971-A Referred to Aging
2015: S.5971 Third Reading Calendar

 
FISCAL IMPLICATIONS:


The state shall reimburse NYC for 10% of the amount of tax revenue
abated from the TRIE program. It is estimated that the program would
cost NYC $34 million dollars for the first year of implementation.

 
EFFECTIVE DATE:
This act shall take on July 1, 2019.

2019-S924 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    924
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the real property tax law, in relation to tax abatements
   for dwelling units occupied by certain persons residing in  rent-cont-
   rolled or rent regulated properties, and providing state aid to cities
   affected by such tax abatements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The section heading of section 467-b of the  real  property
 tax  law, as amended by section 1 of chapter 188 of the laws of 2005, is
 amended to read as follows:
   Tax abatement for rent-controlled and rent regulated property occupied
 by senior citizens or persons with  disabilities  OR  PERSONS  PAYING  A
 MAXIMUM  RENT  OR  LEGAL  REGULATED  RENT  WHICH EXCEEDS ONE-HALF OF THE
 COMBINED INCOME OF ALL MEMBERS OF THEIR HOUSEHOLD.
   § 2. Paragraph b of subdivision 1 of section 467-b of the real proper-
 ty tax law, as amended by section 1 of chapter 188 of the laws of  2005,
 is amended to read as follows:
   b.  "Head  of the household" means a person (i) who is sixty-two years
 of age or older, or (ii) who qualifies as a  person  with  a  disability
 pursuant  to subdivision five of this section, OR (III) WHO PAYS A MAXI-
 MUM RENT OR LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE  COMBINED
 INCOME  OF  ALL  MEMBERS  OF  THEIR  HOUSEHOLD,  and  is entitled to the
 possession or to the use or occupancy of a dwelling unit;
   § 3. Subdivision 2 of section 467-b of the real property tax  law,  as
 amended  by  chapter  747 of the laws of 1985, paragraph (c) as added by
 chapter 553 of the laws of 2015, paragraph (d) as added by  chapter  343
 of the laws of 2016, is amended to read as follows:
   2.  The  governing body of any municipal corporation is hereby author-
 ized and empowered to adopt, after public hearing,  in  accordance  with
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04566-01-9

 S. 924                              2
 
 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
 one  of the following amounts:  (a) 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; or
   (b)  WHERE  THE  HEAD  OF THE HOUSEHOLD QUALIFIES AS A PERSON PAYING A
 MAXIMUM RENT OR LEGAL REGULATED  RENT  WHICH  EXCEEDS  ONE-HALF  OF  THE
 COMBINED  INCOME  OF ALL MEMBERS OF THE HOUSEHOLD AND 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-HALF  OF THE COMBINED INCOME OF ALL MEMBERS OF THE
 HOUSEHOLD; OR
   (C) where the head of the household receives 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  is  not  covered  by the maximum allowance for shelter which such
 person is entitled to receive pursuant to the social services law.
   [(c)] (D) Provided, however, that in a city of  a  population  of  one
 million  or  more,  where  the head of household has been granted a rent
 increase exemption order that is in effect  as  of  January  first,  two
 thousand  fifteen  or takes effect on or before July first, two thousand
 fifteen, the amount determined by  paragraph  (a)  of  this  subdivision
 shall  be  an amount not in excess of the difference between the maximum
 rent or legal regulated rent and the amount specified in such order,  as
 adjusted by any other provision of this section.
   [(d)]  (E)  (1) Provided, however, that in a city with a population of
 one million or more, a head of the household who  has  received  a  rent
 increase exemption order that has expired and who, upon renewal applica-
 tion  for  the  period  commencing immediately after such expiration, is
 determined to be ineligible for a rent increase exemption order  because
 the  combined income of all members of the household exceeds the maximum
 amount allowed by this section or the maximum rent  or  legal  regulated
 rent  does not exceed one-third of the combined income of all members of
 the household, may submit a new application during the following  calen-
 dar  year,  and  if  such head of the household receives a rent increase
 exemption order that commences during such calendar year, the tax abate-
 ment amount for such order shall be calculated as  if  such  prior  rent
 increase  exemption  order  had  not  expired. However, no tax abatement
 benefits may be provided for the period of ineligibility.
   (2) No head of the household may receive more than three rent increase
 exemption orders calculated as if a prior rent increase exemption  order
 had not expired, as described in subparagraph one of this paragraph.
   § 4. Paragraph a of subdivision 3 of section 467-b of the real proper-
 ty  tax law, as amended by section 1 of part U of chapter 55 of the laws
 of 2014, is amended to read as follows:
   a. for a dwelling unit where the head of the  household  is  a  person
 sixty-two  years of age or older OR WHERE THE HEAD OF THE HOUSEHOLD PAYS
 A MAXIMUM RENT OR LEGAL REGULATED RENT WHICH  EXCEEDS  ONE-HALF  OF  THE
 COMBINED  INCOME OF ALL MEMBERS OF THE HOUSEHOLD, 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

 S. 924                              3
 
 exceeds  four  thousand dollars, or such other sum not more than twenty-
 five thousand dollars beginning July first, two thousand  five,  twenty-
 six thousand dollars beginning July first, two thousand six, twenty-sev-
 en   thousand   dollars   beginning  July  first,  two  thousand  seven,
 twenty-eight thousand dollars beginning July first, two thousand  eight,
 twenty-nine  thousand  dollars  beginning July first, two thousand nine,
 and fifty thousand dollars beginning July first, two thousand  fourteen,
 as  may  be  provided  by the local law, ordinance or resolution adopted
 pursuant to this section, provided that when the head of  the  household
 retires  before the commencement of such income tax year and the date of
 filing the application, the income for such  year  may  be  adjusted  by
 excluding salary or earnings and projecting his or her retirement income
 over the entire period of such year.
   § 5. Paragraph d of subdivision 1 of section 467-c of the real proper-
 ty tax law, as separately amended by chapters 188 and 205 of the laws of
 2005,  subparagraph 1 as amended by section 2 of part U of chapter 55 of
 the laws of 2014, is amended to read as follows:
   d. "Eligible head of the household" means (1) a person or his  or  her
 spouse  who  is  sixty-two years of age or older, OR A PERSON WHO PAYS A
 MAXIMUM RENT WHICH EXCEEDS  ONE-HALF  OF  THE  COMBINED  INCOME  OF  ALL
 MEMBERS  OF  THE  HOUSEHOLD, and is entitled to the possession or to the
 use and occupancy of a dwelling unit, provided, however, with respect to
 a dwelling which was subject to a mortgage insured or initially  insured
 by  the  federal  government pursuant to section two hundred thirteen of
 the National Housing Act, as amended "eligible head  of  the  household"
 shall be limited to that person or his or her spouse who was entitled to
 possession or the use and occupancy of such dwelling unit at the time of
 termination  of  such  mortgage, and whose income when combined with the
 income of all other members of the household, does not exceed six  thou-
 sand  five hundred dollars for the taxable period, or such other sum not
 less than sixty-five hundred dollars nor more than twenty-five  thousand
 dollars  beginning  July  first,  two thousand five, twenty-six thousand
 dollars beginning July first, two thousand  six,  twenty-seven  thousand
 dollars  beginning July first, two thousand seven, twenty-eight thousand
 dollars beginning July first, two thousand eight,  twenty-nine  thousand
 dollars  beginning  July  first,  two  thousand nine, and fifty thousand
 dollars beginning July first, two thousand fourteen, as may be  provided
 by  local  law;  or  (2)  a  person with a disability as defined in this
 subdivision.
   § 6. Subparagraph 1 of paragraph a of subdivision 3 of  section  467-c
 of  the  real property tax law, as amended by chapter 747 of the laws of
 1985, is amended to read as follows:
   (1) where the eligible head of the household WHO IS  EITHER  SIXTY-TWO
 YEARS  OF  AGE OR OLDER OR IS DISABLED does not receive a monthly allow-
 ance for shelter pursuant to the social  services  law,  the  amount  by
 which  increases  in the maximum rent subsequent to such person's eligi-
 bility date have resulted in the maximum rent exceeding one-third of the
 combined income of all members of the household for the taxable period,
 OR WHERE THE ELIGIBLE HEAD OF THE HOUSEHOLD IS A PERSON WHO PAYS A MAXI-
 MUM RENT WHICH EXCEEDS ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF
 THE HOUSEHOLD AND DOES NOT  RECEIVE  A  MONTHLY  ALLOWANCE  FOR  SHELTER
 PURSUANT  TO  THE  SOCIAL SERVICES LAW, THE AMOUNT BY WHICH INCREASES IN
 THE MAXIMUM RENT SUBSEQUENT TO SUCH PERSON'S DATE HAVE RESULTED  IN  THE
 MAXIMUM RENT EXCEEDING ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF
 THE  HOUSEHOLD  FOR  THE TAXABLE PERIOD, except that in no event shall a

 S. 924                              4
 
 rent increase exemption order/tax abatement certificate become effective
 prior to January first, nineteen hundred seventy-six; or
   §  7.  The state comptroller shall annually pay to each city providing
 real property tax abatements pursuant to sections 467-b and 467-c of the
 real property tax law an amount equal to 10 per centum of the real prop-
 erty tax revenue lost during the city fiscal year due to the implementa-
 tion of the provisions  of  this  act.  Each  city  eligible  for  state
 payments  pursuant  to  this section shall provide the state comptroller
 with such information as he or she shall deem necessary.
   § 8. This act shall take effect immediately; provided however, that
   a. the amendments to section 467-b of the real property tax law,  made
 by sections one, two, three and four of this act shall be subject to the
 expiration and reversion of such section pursuant to section 17 of chap-
 ter  576  of  the  laws of 1974, and shall expire and be deemed repealed
 therewith;
   b. the amendments to paragraph a of subdivision 3 of section 467-b  of
 the  real  property  tax  law, made by section four of this act shall be
 subject to the expiration of such paragraph pursuant  to  section  4  of
 part  U  of  chapter  55  of  the laws of 2014, as amended, and shall be
 deemed to expire therewith; and
   c. the amendments to subparagraph 1 of paragraph d of subdivision 1 of
 section 467-c of the real property tax law, made by section five of this
 act shall not affect the expiration of  such  subparagraph  pursuant  to
 section  4  of part U of chapter 55 of the laws of 2014, as amended, and
 shall expire and be deemed repealed therewith.

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