•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A06584 Summary:

BILL NOA06584
 
SAME ASSAME AS S05336
 
SPONSORCymbrowitz
 
COSPNSRRosenthal L, Hyndman, Ortiz, D'Urso, Barnwell, Mosley, O'Donnell, Simon, Colton, Abbate, Carroll, Cook, Williams, Gottfried, De La Rosa, Crespo, Sepulveda, Barron, Walker, Davila
 
MLTSPNSRDenDekker
 
Amd 654-b, add Art 16-B 930 - 933, Priv Hous Fin L; amd 11-2102 & 11-2104, NYC Ad Cd
 
Relates to rental assistance for low income elderly families; imposes a tax on conveyances or transfers of residential real property whose consideration is greater than two million dollars.
Go to top    

A06584 Actions:

BILL NOA06584
 
03/09/2017referred to housing
04/25/2017reported referred to codes
05/02/2017reported referred to ways and means
01/03/2018referred to ways and means
Go to top

A06584 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6584
 
SPONSOR: Cymbrowitz
  TITLE OF BILL: An act to amend the private housing finance law, in relation to the provision of rental assistance for low income elderly families, and to amend the administrative code of the city of New York, in relation to imposing a tax on conveyances or transfers of residential real property whose consideration is greater than two million dollars   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to ensure that low income seniors can stay in their homes by providing rental assistance.   SUMMARY OF SPECIFIC PROVISIONS: This bill would provide rental assistance to older adults who are paying more than 30 percent of their monthly income toward their rent. To be eligible, an older adult and their family would have a total income that does not exceed 80 percent of the area median income. The amount of rental assistance would be calculated as the difference between the senior's rent payable, or maximum rent set by the agency, and 30 percent of the senior's monthly income. A tax on the transfer of residential real property for consideration greater than two million dollars would be instituted to support this rental assistance benefit. The tax would apply to the amount of the consideration in excess of two million dollars.   JUSTIFICATION: Older adults often live on fixed incomes as costs for essential goods and services rise. The cost of housing, particularly rents in most areas of New York City, is often particularly burdensome. Financial experts recommend that a family pay no more than one third of their monthly income toward rent, but thousands of seniors across the City are paying much more. This increasing rent burden puts considerable strain on the senior's finances and increases the risk that they will ultimately no longer be able to afford to stay in their homes. Unfortunately, there are not enough affordable housing units for these older adults to move into, which necessitates this new approach. The time to act to support our seniors in their homes is now.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: This bill will not impact the State Financial Plan.   EFFECTIVE DATE: Ninetieth day.
Go to top

A06584 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6584
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 9, 2017
                                       ___________
 
        Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
          Committee on Housing
 
        AN ACT to amend the private housing finance  law,  in  relation  to  the
          provision of rental assistance for low income elderly families, and to
          amend  the administrative code of the city of New York, in relation to
          imposing a tax on conveyances or transfers of residential real proper-
          ty whose consideration is greater than two million dollars
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.    Section  654-b  of  the  private housing finance law is
     2  amended by adding a new subdivision 9 to read as follows:
     3    9. The subsidiary corporation shall use the taxes described in  subdi-
     4  vision  g  of  section 11-2102 of the administrative code of the city of
     5  New York exclusively for the provision of the elderly rental  assistance
     6  program as described in article sixteen-B of this chapter.
     7    §  2. The private housing finance law is amended by adding a new arti-
     8  cle 16-B to read as follows:
     9                                ARTICLE 16-B
    10                       ELDER RENTAL ASSISTANCE PROGRAM
    11  Section 930. Statement of legislative findings and purpose.
    12          931. Definitions.
    13          932. Elder rental assistance program.
    14          933. General and administrative provisions.
    15    § 930. Statement of legislative findings and purpose.  The legislature
    16  hereby finds that the city of New York is experiencing an extreme short-
    17  age of affordable housing that serves low income  senior  citizens.  For
    18  hundreds  of thousands of senior citizens living on pensions, retirement
    19  savings and other fixed incomes, the rapid rise in rents has  threatened
    20  their  ability  to stay in their homes and neighborhoods. More than half
    21  of seniors spend more on housing than they can afford and more than  one
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10552-01-7

        A. 6584                             2
 
     1  hundred  thousand  seniors  have  waited  for  seven years or more on an
     2  affordable housing waitlist.
     3    The  legislature further finds that citywide, almost two-thirds of all
     4  senior renter households are among the lowest income households  in  the
     5  city, earning less than fifty percent of area median income.  According-
     6  ly,  the  legislature finds that legislation should be enacted to create
     7  the elder rental assistance program, which will provide  monthly  finan-
     8  cial  assistance to rent-burdened seniors so they can live in dignity in
     9  their own homes. This program will be financed through a marginal tax on
    10  real estate transactions over two million dollars.
    11    § 931. Definitions. As used in this article:
    12    1. "Elderly family" shall mean a family, as  defined  in  24  C.F.R  §
    13  5.403,  whose  head  (including  co-head),  spouse,  or sole member is a
    14  person who is at least sixty-two years of age. It  may  include  two  or
    15  more persons who are at least sixty-two years of age living together, or
    16  one  or more persons who are at least sixty-two years of age living with
    17  one or more live-in aides, as defined in 24 C.F.R  §  5.403,  and  shall
    18  incorporate any amendments made to this definition in 24 C.F.R § 5.403.
    19    2.  "Low  income  families" shall mean those families whose incomes do
    20  not exceed eighty per centum of the  median  income  for  the  New  York
    21  metropolitan  statistical  area,  as  determined by the secretary of the
    22  federal department of housing and urban development with adjustments for
    23  smaller and larger families.
    24    § 932. Elder rental assistance program. 1. Subject to the availability
    25  of funds generated by the taxes described in subdivision  g  of  section
    26  11-2102  of the administrative code of the city of New York, the housing
    27  assistance corporation, established by section six hundred  fifty-four-b
    28  of  this  chapter,  shall  provide  rental assistance to or on behalf of
    29  low-income families whose members constitute an elderly family, who  are
    30  residents  of the city of New York, and who pay more than thirty percent
    31  of their monthly adjusted income as rent as calculated  pursuant  to  42
    32  U.S.C  §  1437a(a)(1)(A). The amount of rental assistance provided to or
    33  on behalf of each such family pursuant to this subdivision shall  be  an
    34  amount  up  to  the  difference  between  (i)  a rent established by the
    35  department of housing preservation and development on  an  annual  basis
    36  not  to  exceed  the  maximum  monthly  rent  prescribed  in  42  U.S.C.
    37  §1437f(c)(1), or such lower rent as may be required by  applicable  law,
    38  or  as  ordered  pursuant  to section four hundred sixty-seven-b or four
    39  hundred sixty-seven-c of the real property tax law,  if  applicable  and
    40  (ii)  thirty  percent  of  each such family's monthly adjusted income as
    41  calculated pursuant to 42 U.S.C. §1437a(a)(1)(A).
    42    2. To the extent a person or entity receives any such  rental  assist-
    43  ance  on  behalf  of  a particular elderly family, such person or entity
    44  shall credit such assistance against the rent of such family on a month-
    45  ly basis.
    46    3. The rental assistance provided pursuant to subdivision one of  this
    47  section shall continue upon the death or permanent departure of a member
    48  of  an elderly family who was at least sixty-two years of age, including
    49  the head of such family  (including  co-head)  or  his  or  her  spouse,
    50  provided  that such elderly family is otherwise eligible for such rental
    51  assistance and a member of such elderly family who is at least sixty-two
    52  years of age has resided in the  dwelling  unit  receiving  such  rental
    53  assistance  for  at  least one hundred eighty days immediately preceding
    54  such death or permanent departure.
    55    4. The rental assistance authorized by subdivision one of this section
    56  may be provided either as tenant-based or as building-based  assistance.

        A. 6584                             3
 
     1  Such assistance may be used in conjunction with any governmental program
     2  or project to develop or preserve housing.
     3    5.  A  person who has obtained a rent increase exemption order granted
     4  pursuant to section four hundred sixty-seven-b or  four  hundred  sixty-
     5  seven-c  of  the  real  property tax law may also be eligible to receive
     6  rental assistance pursuant to subdivision one of this  section  if  such
     7  person  is  a member of an elderly family that is otherwise eligible for
     8  such assistance.
     9    § 933. General and administrative provisions.  1. The housing  assist-
    10  ance corporation and the department of housing preservation and develop-
    11  ment  shall  have  the  authority to incur reasonable costs for adminis-
    12  tration of the program authorized by section nine hundred thirty-two  of
    13  this  article  provided  that  no  more  than  five percent of the taxes
    14  collected pursuant to subdivision g of section 11-2102 of  the  adminis-
    15  trative code of the city of New York shall be used for such costs.
    16    2.  The  housing  assistance corporation and the department of housing
    17  preservation and development shall have the authority to promulgate such
    18  rules as are necessary to carry  out  the  provisions  of  section  nine
    19  hundred thirty-two of this article.
    20    §  3.  Section  11-2102  of the administrative code of the city of New
    21  York is amended by adding three new subdivisions g, h and i to  read  as
    22  follows:
    23    g.  In  addition  to the taxes imposed by subdivisions a and b of this
    24  section, there is hereby imposed a tax on each deed or other  instrument
    25  or transaction conveying or transferring residential real property or an
    26  economic  interest  therein,  at  the time of delivery by a grantor to a
    27  grantee, when the consideration for such property  and  any  improvement
    28  thereon (whether or not it is included in the same deed) is greater than
    29  two  million  dollars,  or  at the time of the transfer of such economic
    30  interest by a grantor to a grantee, where  the  consideration  for  such
    31  economic  interest is greater than two million dollars. Except as other-
    32  wise provided in this section, all the provisions of this chapter relat-
    33  ing to or applicable to the administration, collection and determination
    34  of the tax imposed by subdivisions a and b of this section  shall  apply
    35  to the tax imposed by this subdivision with such modifications as may be
    36  necessary  to adapt such language to the tax so imposed. For purposes of
    37  this section, "residential real property"  shall  include  any  premises
    38  that are or may be used in whole or in part as a personal residence, and
    39  shall  include  a one, two or three-family house, an individual residen-
    40  tial condominium unit, or an individual residential  cooperative  apart-
    41  ment.  Such  tax shall be at the rate of two and one-half percent of the
    42  consideration in excess of two million dollars.
    43    h. For purposes of  this  section,  the  determination  of  whether  a
    44  conveyance or transfer shall be subject to the taxes imposed by subdivi-
    45  sions  a,  b and g of this section, and of the rate of such taxes, shall
    46  be made prior to the application of subdivision f of  this  section  and
    47  paragraph  eight  of  subdivision  b of section 11-2106 of this chapter,
    48  provided, however, that the amount  of  consideration  subject  to  such
    49  taxes shall be determined after the application of subdivision f of this
    50  section  and paragraph eight of subdivision b of section 11-2106 of this
    51  chapter.
    52    i. Any tax collected pursuant to subdivision g of this  section  shall
    53  be used exclusively for the provision of rental assistance to low-income
    54  families  whose  members  constitute  an elderly family, as described in
    55  subdivision nine of section six  hundred  fifty-four-b  of  the  private
    56  housing finance law. For purposes of this subdivision, "low-income fami-

        A. 6584                             4
 
     1  lies"  and  "elderly  family" shall have the same meaning as provided in
     2  section nine hundred thirty-one of the private housing finance law.
     3    §  4.    Section 11-2104 of the administrative code of the city of New
     4  York, as added by local law number 71 of the city of New  York  for  the
     5  year  1986,  subdivision 4 as amended by local law number 59 of the city
     6  of New York for the year 1989, subdivisions  5  and  6  as  amended  and
     7  subdivision 7 as added by chapter 170 of the laws of 1994, is amended to
     8  read as follows:
     9    §  11-2104 Payment.   The tax imposed [hereunder] pursuant to subdivi-
    10  sions a and b of section 11-2102 of this chapter shall be  paid  by  the
    11  grantor  to the commissioner of finance at the office of the register in
    12  the county where the deed is or would be  recorded  within  thirty  days
    13  after  the delivery of the deed by the grantor to the grantee but before
    14  the recording of such deed, or, in the case of a tax on the transfer  of
    15  an economic interest in real property, at such place as the commissioner
    16  of  finance  shall designate, within thirty days after the transfer. The
    17  grantee shall also be liable for the payment of such tax  in  the  event
    18  that  the amount of tax due is not paid by the grantor or the grantor is
    19  exempt from tax. The tax imposed pursuant to subdivision  g  of  section
    20  11-2102 of this chapter shall be paid by the grantee to the commissioner
    21  of finance at the office of the register in the county where the deed is
    22  or  would  be recorded within thirty days after the delivery of the deed
    23  by the grantor to the grantee but before the recording of such deed, or,
    24  in the case of a tax on the transfer of an  economic  interest  in  real
    25  property,  at such place as the commissioner of finance shall designate,
    26  within thirty days after the transfer. The grantor shall also be  liable
    27  for  the payment of the tax imposed pursuant to subdivision g of section
    28  11-2102 of this chapter in the event that the amount of tax due  is  not
    29  paid  by  the  grantee or the grantee is exempt from payment of the tax.
    30  All moneys received as such payments by the register during the  preced-
    31  ing  month  shall  be  transmitted to the commissioner of finance on the
    32  first day of each month or on such other day as is mutually agreeable to
    33  the commissioner of finance and the register.
    34    a. From the moneys so received by him or her pursuant to  subdivisions
    35  a  and b of section 11-2102 of this chapter, the commissioner of finance
    36  shall set said in a special account:
    37    (1) the total amount of taxes imposed pursuant to  the  provisions  of
    38  paragraph  three  of  subdivision  a  of section 11-2102 of this chapter
    39  including any interest or penalties thereon;
    40    (2) fifty percent of the total amount of taxes imposed pursuant to the
    41  provisions of paragraph four of subdivision a of section 11-2102 of this
    42  chapter, including fifty percent of any interest or  penalties  thereon,
    43  provided,  however, that where such tax is measured by the consideration
    44  for a conveyance without deduction for the amount  of  any  mortgage  or
    45  other lien or encumbrance on the real property or interest therein which
    46  existed  before  the  delivery of the deed and remains thereon after the
    47  delivery of the deed, the entire amount of tax imposed at  the  rate  of
    48  one  percent  on  the  portion  of  the consideration ascribable to such
    49  nondeductible mortgage, lien or other encumbrance, including any  inter-
    50  est or penalties thereon, and fifty percent of the tax on the balance of
    51  the  consideration, including fifty percent of any interest or penalties
    52  thereon, shall be set aside in such special account;
    53    (3) fifty percent of the total amount of taxes imposed pursuant to the
    54  provisions of subparagraph (iii) of paragraph seven of subdivision a  of
    55  section 11-2102 of this chapter, including fifty percent of any interest
    56  or penalties thereon;

        A. 6584                             5
 
     1    (4) fifty percent of the total amount of taxes imposed pursuant to the
     2  provisions  of  paragraph  eight  of subdivision a of section 11-2102 of
     3  this chapter, including fifty percent of any interest or penalties ther-
     4  eon;
     5    (5)  fifty percent of the total amount of taxes imposed at the rate of
     6  two percent pursuant to the provisions of clause (ii) of subparagraph  A
     7  of  paragraph  one  of  subdivision b of section 11-2102 of this chapter
     8  including fifty percent of any interest or penalties thereon;
     9    (6) with respect to any conveyance of real property,  transfer  of  an
    10  economic  interest  therein,  or any grant, assignment or surrender of a
    11  leasehold interest in real property, made  on  or  after  August  first,
    12  nineteen  hundred  eighty-nine  and  taxable under this chapter, in each
    13  instance where the tax rate is in excess of two percent,  a  portion  of
    14  the  tax  received  equal to one percent of the consideration subject to
    15  the tax plus any interest or penalty attributable to such portion of the
    16  tax; and
    17    (7) notwithstanding anything in [subdivision] paragraph  six  of  this
    18  subdivision to the contrary, in each instance where the tax rate imposed
    19  pursuant  to  subdivision  e  of  section  11-2102 of this chapter is in
    20  excess of one percent, a portion of the tax received equal  to  one-half
    21  of  one  percent  of  the  total  consideration for the real property or
    22  economic interest therein conveyed or transferred, plus any interest  or
    23  penalty attributable to such portion of the tax.
    24    Moneys  in such account shall be used for payment by such commissioner
    25  to the state comptroller for deposit in the urban mass transit operating
    26  assistance account of the mass transportation operating assistance  fund
    27  of any amount of insufficiency certified by the state comptroller pursu-
    28  ant  to  the  provisions  of  subdivision six of section [eight-eight-a]
    29  eighty-eight-a of the state finance law, and, on the  fifteenth  day  of
    30  each month, the commissioner of finance shall transmit all funds in such
    31  account  on  the  last  day  of  the  preceding month, except the amount
    32  required for the payment of any amount of insufficiency certified by the
    33  state comptroller and such amount as  he  or  she  deems  necessary  for
    34  refunds  and  such  other amounts necessary to finance the New York City
    35  transportation disabled committee and  the  New  York  City  paratransit
    36  system  as  established  by section fifteen-b of the transportation law,
    37  provided, however, that such amounts shall not exceed six percent of the
    38  total funds in the account but in no event  be  less  than  one  hundred
    39  seventy-five  thousand  dollars  beginning April first, nineteen hundred
    40  eighty-six, and further  that  beginning  November  fifteenth,  nineteen
    41  hundred  eighty-four  and during the entire period prior to operation of
    42  such system, the total of such amounts shall not  exceed  three  hundred
    43  seventy-five  thousand  dollars  for the administrative expenses of such
    44  committee and fifty thousand dollars for  the  expenses  of  the  agency
    45  designated  pursuant to paragraph b of subdivision five of such section,
    46  and other amounts necessary  to  finance  the  operating  needs  of  the
    47  private bus companies franchised by the city of New York and eligible to
    48  receive  state  operating  assistance  under  section  eighteen-b of the
    49  transportation law, provided,  however,  that  such  amounts  shall  not
    50  exceed  four  percent of the total funds in the account, to the New York
    51  city transit authority for mass transit within the city.
    52    b. The moneys received by the  commissioner  of  finance  pursuant  to
    53  subdivision  g  of section 11-2102 of this chapter shall be held for the
    54  benefit of the housing  assistance  corporation  for  the  provision  of
    55  rental  assistance  to  low-income  families whose members constitute an
    56  elderly family in accordance with subdivision i  of  such  section,  and

        A. 6584                             6

     1  paid  to  the housing assistance corporation, in the same fiscal year or
     2  as soon as practicable thereafter, for the purposes  described  in  such
     3  subdivision  i.  Such  moneys  shall  be used to supplement, rather than
     4  supplant,  local  funds  that  such  city  would  have  expended for the
     5  provision of rental assistance  to  low-income  families  whose  members
     6  constitute an elderly family. For purposes of this subdivision, "low-in-
     7  come  families"  and  "elderly  family"  shall  have the same meaning as
     8  provided in section nine  hundred  thirty-one  of  the  private  housing
     9  finance law.
    10    §  5.  This  act shall take effect on the ninetieth day after it shall
    11  have become a law.
Go to top