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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1877
SPONSOR: Dilan 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
PURPOSE OR GENERAL IDEA OF BILL:
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. This bill aims to support and work in conjunction with
current and future rent regulations enacted by the state legislature.
SUMMARY OF PROVISIONS:
This bill creates a tenant rent increase exemption program. (TRIE) which
would allow certain tenants residing in NYC who earn less than $50,000
and are paying over 50% of their income in rent to become eligible for a
rent freeze. Section one amends the title of section 467-b of the real
property tax law to include persons paying a maximum rent or legal regu-
lated rent which exceeds one-half of the combined income of all members
of their household. Section two amends real property tax law section
467-b 3 (a) to expand the definition of "head of the household" to
include those who pay a maximum rent which exceeds one-half of the
combined income of all members of their household. Section 3 and Section
4 amend real property tax law section 467-b to provide that a person who
lives in rent controlled or rent stabilized housing who is the head of a
head of household who is not otherwise receiving a senior citizen rent
increase exemption or a disability-based rent increase exemption under
section 467-b, or a monthly shelter allowance pursuant to the social
services law; and who pays more than 50% of his or her income for rent,
shall be eligible for a tenant rent increase exemption. Section 5 and
Section 6 amend real property tax law sectio n 467-c to provide that a
person who lives in a dwelling unit which is in a building which has
been federally insured under Section 213 of the National Housing Act,
owned by a Mitchell Lama development, limited dividend housing company,
redevelopment company, or Housing Development Fund Corporation, who is
the head of a head of household who is not otherwise receiving a senior
citizen rent increase exemption or a disability-based rent increase
exemption under section 467-c, or a monthly shelter allowance pursuant
to the social services law, and who pays more than 50% of his or her
income for rent, shall be eligible for a tenant rent increase exemption.
JUSTIFICATION:
This bill expands upon the very successful New York City senior citizen
rent increase exemption (SCRIE) and the disability rent increase
exemption (DRIE). 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.
PRIOR LEGISLATIVE HISTORY:
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
The state shall reimburse NYC for 10% of the amount of tax revenue
abated. It is estimated that the program would cost NYC $34 million
dollars for the first year of implementation.
EFFECTIVE DATE:
This act shall take effect July 1, 2026 and shall expire at the same
time provisions of the SCRIE and DRIE programs expire pursuant to chap-
ter 55 of the laws of 2014.
