STATE OF NEW YORK
________________________________________________________________________
10018
IN ASSEMBLY
May 5, 2016
___________
Introduced by M. of A. MOSLEY -- read once and referred to the Committee
on Aging
AN ACT to amend the real property tax law, in relation to the addition
of preferential rent for senior citizens or persons with disabilities
rent increase exemptions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph e of subdivision 1, subdivision 2 and paragraphs
2 c, d, and e of subdivision 3 of section 467-b of the real property tax
3 law, paragraph e of subdivision 1 as amended by chapter 555 of the laws
4 of 1977, subdivision 2 as amended by chapter 747 of the laws of 1985,
5 paragraph (c) of subdivision 2 as added and subparagraph 3 of paragraph
6 d and subparagraph 3 of paragraph e of subdivision 3 as amended by chap-
7 ter 553 of the laws of 2015, paragraphs c, d and e of subdivision 3 as
8 amended by chapter 188 of the laws of 2005, are amended to read as
9 follows:
10 e. "Increase in maximum rent, preferential rent or legal regulated
11 rent" means any increase in the maximum rent, preferential rent or the
12 legal regulated rent for the dwelling unit in question pursuant to the
13 applicable rent control law, rent stabilization law or to the emergency
14 tenant protection act of nineteen seventy-four, respectively, or such
15 classes of increase thereunder as may be specified in a local law, ordi-
16 nance or resolution enacted pursuant to this section, over such base
17 period rent as shall be provided therein or an exemption from the maxi-
18 mum rent or legal regulated rent as specified in paragraph c or d of
19 subdivision three of this section. Preferential rent for purposes of
20 this section shall mean the same as paragraph fourteen of subdivision c
21 of section 26-511 of the administrative code of the city of New York;
22 2. The governing body of any municipal corporation is hereby author-
23 ized and empowered to adopt, after public hearing, in accordance with
24 the provisions of this section, a local law, ordinance or resolution
25 providing for the abatement of taxes of said municipal corporation
26 imposed on real property containing a dwelling unit as defined herein by
27 one of the following amounts: (a) where the head of the household does
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14240-01-6
A. 10018 2
1 not receive a monthly allowance for shelter pursuant to the social
2 services law, an amount not in excess of that portion of any increase in
3 maximum rent, preferential rent or legal regulated rent which causes
4 such maximum rent, preferential rent or legal regulated rent to exceed
5 one-third of the combined income of all members of the household; or
6 (b) where the head of the household receives a monthly allowance for
7 shelter pursuant to the social services law, an amount not in excess of
8 that portion of any increase in maximum rent, preferential rent or legal
9 regulated rent which is not covered by the maximum allowance for shelter
10 which such person is entitled to receive pursuant to the social services
11 law.
12 (c) Provided, however, that in a city of a population of one million
13 or more, where the head of household has been granted a rent increase
14 exemption order that is in effect as of January first, two thousand
15 fifteen or takes effect on or before July first, two thousand fifteen,
16 the amount determined by paragraph (a) of this subdivision shall be an
17 amount not in excess of the difference between the maximum rent, prefer-
18 ential rent or legal regulated rent and the amount specified in such
19 order, as adjusted by any other provision of this section.
20 c. upon issuance of a tax abatement certificate as provided in subdi-
21 vision four of this section, the amount set forth in said certificate
22 shall be deducted from the legal maximum rent, legal preferential rent
23 or legal regulated rent chargeable for a dwelling unit of a head of the
24 household.
25 d. notwithstanding any other provision of law, when a head of the
26 household to whom a then current, valid tax abatement certificate has
27 been issued moves his principal residence from one dwelling unit to a
28 subsequent dwelling unit located within the same municipal corporation,
29 the head of the household may apply for a tax abatement certificate
30 relating to the subsequent dwelling unit, and such certificate may
31 provide that the head of the household shall be exempt from paying that
32 portion of the maximum rent, preferential rent or legal regulated rent
33 for the subsequent dwelling unit which is the least of the following:
34 (1) the amount by which the rent for the subsequent dwelling unit
35 exceeds the last rent, as reduced, which the head of the household was
36 required to actually pay in the original dwelling unit;
37 (2) the last amount deducted from the maximum rent, preferential rent
38 or legal regulated rent pursuant to this section in the original dwell-
39 ing unit; or
40 (3) where the head of the household does not receive a monthly allow-
41 ance for shelter pursuant to the social services law, the amount by
42 which the maximum rent, preferential rent or legal regulated rent of the
43 subsequent dwelling unit exceeds one-third of the combined income of all
44 members of the household, except that this subparagraph shall not apply
45 to a head of the household who has been granted a rent increase
46 exemption order that is in effect as of January first, two thousand
47 fifteen or takes effect on or before July first, two thousand fifteen.
48 e. notwithstanding any other provision of law, when a head of the
49 household to whom a then current, valid tax abatement certificate has
50 been issued moves his principal residence from one dwelling unit subject
51 to the provisions of articles II, IV, V or XI of the private housing
52 finance law to a subsequent dwelling unit subject to either the local
53 emergency housing rent control law or to the emergency tenant protection
54 act of nineteen seventy-four which is located within the same municipal
55 corporation, the head of the household may apply for a tax abatement
56 certificate relating to the subsequent dwelling unit, and such certif-
A. 10018 3
1 icate may provide that the head of the household shall be exempt from
2 paying that portion of the maximum rent, preferential rent or legal
3 regulated rent for the subsequent dwelling unit which is the least of
4 the following:
5 (1) the amount by which the rent for the subsequent dwelling unit
6 exceeds the last rent, as so reduced, which the head of the household
7 was required to actually pay in the original dwelling unit;
8 (2) the most recent amount so deducted from the maximum rent, prefer-
9 ential rent or legal regulated rent in the original dwelling unit; or
10 (3) where the head of the household does not receive a monthly allow-
11 ance for shelter pursuant to the social services law, the amount by
12 which the maximum rent, preferential rent or legal regulated rent of the
13 subsequent dwelling unit exceeds one-third of the combined income of all
14 members of the household, except that this subparagraph shall not apply
15 to a head of the household who has been granted a rent increase
16 exemption order that is in effect as of January first, two thousand
17 fifteen or takes effect on or before July first, two thousand fifteen.
18 § 2. Paragraph e of subdivision 1, subdivision 2, paragraph c of
19 subdivision 3, subdivision 4, subdivision 6 and subdivision 8 of section
20 467-b of the real property tax law, as added by chapter 689 of the laws
21 of 1972, and subdivision 2 as amended by chapter 553 of the laws of 2015
22 and paragraph c of subdivision 3 as amended by chapter 188 of the laws
23 of 2005, are amended to read as follows:
24 e. "Increase in preferential rent or maximum rent" means any increase
25 in the preferential rent or maximum rent for the dwelling unit in ques-
26 tion pursuant to the applicable rent stabilization or rent control law
27 respectively, or such classes of increase thereunder as may be specified
28 in a local law, ordinance or resolution enacted pursuant to this
29 section, over such base period rent as shall be provided therein. Pref-
30 erential rent for purposes of this section shall mean the same as para-
31 graph fourteen of subdivision c of section 26-511 of the administrative
32 code of the city of New York;
33 2. The governing body of any city, town or village is hereby author-
34 ized and empowered to adopt, after public hearing, in accordance with
35 the provisions of this section, a local law, ordinance or resolution
36 providing for the abatement of taxes of said municipal corporation
37 imposed on real property containing a dwelling unit as defined herein by
38 an amount not in excess of that portion of any increase in preferential
39 rent or maximum rent which causes such preferential rent or maximum rent
40 to exceed one-third of the combined income of all members of the house-
41 hold, except that in a city of a population of one million or more where
42 the head of the household has been granted a rent increase exemption
43 order that is in effect as of January first, two thousand fifteen or
44 takes effect on or before July first, two thousand fifteen, such abate-
45 ment of taxes shall be in an amount not in excess of the difference
46 between the preferential rent, maximum rent or legal regulated rent and
47 the amount specified in such order, as adjusted by any other provision
48 of this section.
49 c. upon issuance of a tax abatement certificate as provided in subdi-
50 vision four of this section, the amount of increase in preferential or
51 maximum rent set forth in said certificate shall be deducted from the
52 legal preferential rent or maximum rent chargeable for a dwelling unit
53 of a head of the household.
54 4. The head of the household must apply each year to the appropriate
55 rent control agency for a tax abatement certificate on a form prescribed
56 by said agency. A tax abatement certificate setting forth an amount not
A. 10018 4
1 in excess of the increase in preferential rent or maximum rent for the
2 taxable period shall be issued by said agency to each head of the house-
3 hold who is found to be eligible under this section on or before the
4 last date prescribed by law for the payment of the taxes or the first
5 installment thereof of any city, town or village which has granted an
6 abatement of taxes. Copies of such certificate shall be issued to the
7 owner of the real property containing the dwelling unit of the head of
8 the household and to the collecting officer charged with the duty of
9 collecting the taxes of each city, town or village which has granted the
10 abatement of taxes authorized by this section.
11 6. The portion of the increase in preferential or maximum rent for the
12 taxable period set forth in a tax abatement certificate shall be
13 deducted from the total taxes levied by or on behalf of the city, town
14 or village which has granted such abatement on real property containing
15 the dwelling unit of a head of the household to whom the certificate has
16 been issued. In the event that both a town and a village included there-
17 in grant such abatement, such deduction for properties located in the
18 village shall be made first from taxes levied by or on behalf of the
19 village and any excess thereof shall be deducted from town taxes.
20 8. Where a tax abatement certificate has been issued to a head of the
21 household as authorized by a local law, ordinance or resolution adopted
22 pursuant to this section and the landlord collects or attempts to
23 collect the increase in the preferential rent or maximum rent for a
24 dwelling unit occupied by such head of the household, the amount of such
25 abatement shall be deemed a rent overcharge under the applicable rent
26 stabilization or rent control law respectively.
27 § 3. Paragraphs h and i of subdivision 1 and subdivisions 3, 5, 6, 7,
28 and 8 of section 467-c of the real property tax law, as added by chapter
29 208 of the laws of 1975, paragraph h of subdivision 1 and paragraph b of
30 subdivision 3 as amended and paragraph i of subdivision 1 as added by
31 chapter 420 of the laws of 1991, subdivision 3 as amended by chapter 747
32 of the laws of 1985, subparagraph 3 of paragraph a of subdivision 3 as
33 added and subparagraph 3 of paragraph b of subdivision 3 and paragraph d
34 of subdivision 3 as amended by chapter 553 of the laws of 2015, para-
35 graph c of subdivision 3 as added by chapter 17 of the laws of 1987 and
36 subdivision 5 as amended by chapter 538 of the laws of 1976, are amended
37 to read as follows:
38 h. "Increase in maximum rent or preferential rent" means any increase
39 in the maximum rent or preferential rent for the dwelling unit becoming
40 effective on or after the eligibility date, including capital assess-
41 ments and voluntary capital contributions but excluding any increase in
42 maximum rent or preferential rent attributable to gas or electrical
43 utility charges or an increase in dwelling space, services or equipment,
44 or an exemption from the maximum rent, preferential rent or legal regu-
45 lated rent as specified in paragraph b of subdivision three of this
46 section, provided, however, that with respect to any dwelling unit in a
47 dwelling which is or was subject to a mortgage insured or initially
48 insured by the federal government pursuant to section two hundred thir-
49 teen of the National Housing Act, as amended, "increase in maximum rent"
50 shall not include any increase in maximum rent attributable to capital
51 assessments or voluntary capital contributions.
52 i. "Maximum rent or preferential rent" means the maximum rent or pref-
53 erential rent, excluding gas and electric utility charges, which has
54 been authorized or approved by the commissioner or the supervising agen-
55 cy or the legal regulated rent established for the dwelling unit pursu-
56 ant to the provisions of either Article II, IV, V or XI of the private
A. 10018 5
1 housing finance law, or the rental established for a cooperatively owned
2 dwelling unit previously regulated pursuant to the provisions of Article
3 II, IV, V or XI of the private housing finance law; or such approved
4 rent for a dwelling unit in a dwelling subject to a mortgage insured or
5 initially insured by the federal government pursuant to section two
6 hundred thirteen of the National Housing Act, as amended; or such rent
7 established for a dwelling unit which was subject to a mortgage insured
8 or initially insured by the federal government pursuant to section two
9 hundred thirteen of the National Housing Act, as amended. Preferential
10 rent for purposes of this section shall mean the same as paragraph four-
11 teen of subdivision c of section 26-511 of the administrative code of
12 the city of New York.
13 3. Any such local law or ordinance shall provide that: a. an eligible
14 head of the household may obtain a rent increase exemption order/tax
15 abatement certificate entitling him to an exemption from increases in
16 the maximum rent or preferential rent otherwise payable in one of the
17 following amounts:
18 (1) where the eligible head of the household does not receive a month-
19 ly allowance for shelter pursuant to the social services law, the amount
20 by which increases in the maximum rent or preferential rent subsequent
21 to such person's eligibility date have resulted in the maximum rent or
22 preferential rent exceeding one-third of the combined income of all
23 members of the household for the taxable period, except that in no event
24 shall a rent increase exemption order/tax abatement certificate become
25 effective prior to January first, nineteen hundred seventy-six; or
26 (2) where the eligible head of the household receives a monthly allow-
27 ance for shelter pursuant to the social services law, an amount not
28 exceeding that portion of any increase in maximum rent or preferential
29 rent subsequent to such person's eligibility date which is not covered
30 by the maximum allowance for shelter which such person is entitled to
31 receive pursuant to the social services law.
32 (3) provided, however, that in a city of a population of one million
33 or more, where the eligible head of the household has been granted a
34 rent increase exemption order as a person with a disability as defined
35 in paragraph m of subdivision one of this section that is in effect as
36 of January first, two thousand fifteen or takes effect on or before July
37 first, two thousand fifteen, the amount determined by subparagraph one
38 of this paragraph shall be an amount not in excess of the difference
39 between the maximum rent or preferential rent and the amount specified
40 in such order, as adjusted by any other provision of this section.
41 b. notwithstanding any other provision of law, when a head of the
42 household to whom a then current, valid tax abatement certificate has
43 been issued moves his principal residence from one dwelling unit subject
44 to this section, to the local emergency housing rent control law or to
45 the emergency tenant protection act of nineteen seventy-four to a subse-
46 quent dwelling unit which is subject to the provisions of articles II,
47 IV, V or XI of the private housing finance law or which is or was
48 subject to a mortgage insured or initially insured by the federal
49 government pursuant to section two hundred thirteen of the National
50 Housing Act, as amended, and which is located within the same municipal
51 corporation, the head of the household may apply for a tax abatement
52 certificate relating to the subsequent dwelling unit, subject to any
53 terms and conditions imposed by reason of any fund created under subdi-
54 vision eight of this section, and such certificate may provide that the
55 head of the household shall be exempt from paying that portion of the
A. 10018 6
1 maximum rent, preferential rent or legal regulated rent for the subse-
2 quent dwelling unit which is the least of the following:
3 (1) the amount by which the rent for the subsequent dwelling unit
4 exceeds the last rent, as so reduced, which the head of the household
5 was required to actually pay in the original dwelling unit;
6 (2) the most recent amount so deducted from the maximum rent, prefer-
7 ential rent or legal regulated rent in the original dwelling unit; or
8 (3) where the head of the household does not receive a monthly allow-
9 ance for shelter pursuant to the social services law, the amount by
10 which the maximum rent, preferential rent or legal regulated rent of the
11 subsequent dwelling unit exceeds one-third of the combined income of all
12 members of the household, except that this subparagraph shall not apply
13 to a head of the household who has been granted a rent increase
14 exemption order as a person with a disability as defined in paragraph m
15 of subdivision one of this section that is in effect as of January
16 first, two thousand fifteen or takes effect on or before July first, two
17 thousand fifteen.
18 c. Notwithstanding any other provision of law, when a dwelling unit
19 subject to the provisions of article II, IV, V or XI of the private
20 housing finance law or subject to a mortgage insured or initially
21 insured by the federal government pursuant to section two hundred thir-
22 teen of the national housing act, as amended, is later reclassified by
23 order of the commissioner, the supervising agency or any other govern-
24 mental agency supervising such dwelling unit, or by operation of law to
25 a dwelling unit subject to any of the provisions of article II, IV, V or
26 XI of the private housing finance law, the rent stabilization law of
27 nineteen hundred sixty-nine of the city of New York or the emergency
28 tenant protection act of nineteen seventy-four, or when a dwelling unit
29 subject to such rent stabilization law or such emergency tenant
30 protection act, or subject to the emergency housing rent control law or
31 to the rent and rehabilitation law of the city of New York enacted
32 pursuant to the local emergency housing rent control act, is reclassi-
33 fied by order of the commissioner or the supervising agency or by opera-
34 tion of law to a dwelling unit subject to any of the aforementioned
35 provisions of the private housing finance law or subject to a mortgage
36 insured or initially insured by the federal government pursuant to
37 section two hundred thirteen of the national housing act, as amended, a
38 head of the household who held or holds a valid rent increase exemption
39 order at the time of the reclassification shall be issued a rent
40 increase exemption order under applicable law continuing the previous
41 exemption notwithstanding the reclassification of the dwelling unit.
42 d. notwithstanding any other provision of law to the contrary, where a
43 eligible head of the household holds a current, valid rent increase
44 exemption order/tax abatement certificate and, after the effective date
45 of this paragraph, there is a permanent decrease in income in an amount
46 which exceeds twenty percent of such income as represented in such
47 eligible head of household's last approved application for a rent
48 increase exemption order/tax abatement certificate or for renewal there-
49 of, such eligible head of the household may apply for a redetermination
50 of the amount set forth therein. Upon application, such amount shall be
51 redetermined so as to re-establish the ratio of adjusted rent to income
52 which existed at the time of approval of such eligible head of the
53 household's last application for a rent increase exemption order/tax
54 abatement certificate or for renewal thereof; provided, however, that in
55 no event shall the amount of the adjusted rent be redetermined to be (i)
56 in the case of an eligible head of the household who does not receive a
A. 10018 7
1 monthly allowance for shelter pursuant to the social services law, less
2 than one-third of income unless such head of the household has been
3 granted a rent increase exemption order as a person with a disability as
4 defined in paragraph m of subdivision one of this section that is in
5 effect as of January first, two thousand fifteen or takes effect on or
6 before July first, two thousand fifteen; or (ii) in the case of an
7 eligible head of the household who receives a monthly allowance for
8 shelter pursuant to the social services law, less than the maximum
9 allowance for shelter which such eligible head of the household is enti-
10 tled to receive pursuant to law. For purposes of this paragraph, a
11 decrease in income shall not include any decrease in income resulting
12 from the manner in which income is calculated pursuant to any amendment
13 to paragraph f of subdivision one of this section made on or after April
14 first, nineteen hundred eighty-seven. For purposes of this paragraph,
15 "adjusted rent" shall mean maximum rent or preferential rent less the
16 amount set forth in a rent increase exemption order/tax abatement
17 certificate.
18 5. Any such local law or ordinance may provide that the effective date
19 of a rent increase exemption order/tax abatement certificate shall be
20 the date of the first increase in maximum rent or preferential rent
21 becoming effective after the applicant's eligibility date except that in
22 no event shall a rent increase exemption order/tax abatement certificate
23 become effective prior to January first, nineteen hundred seventy-six.
24 6. Any such local law or ordinance may provide that upon receipt of a
25 copy of the rent increase exemption order/tax abatement certificate, the
26 housing company managing the dwelling unit of the eligible head of the
27 household shall promptly accord to the eligible head of the household
28 covered by such order/certificate the appropriate credit against the
29 monthly maximum rent or preferential rent then or thereafter payable. To
30 the extent the full amount of such credit has not been accorded for any
31 past period since the effective date specified in the order/certificate,
32 the housing company shall credit the total aggregate amount not so cred-
33 ited to the monthly maximum rent or preferential rent next payable or to
34 such subsequent monthly maximum rents as the supervising agency may
35 authorize. It shall be illegal to collect any amount for which a rent
36 increase exemption order/tax abatement certificate provides credit or to
37 withhold credit for any such amounts already collected, and collection
38 or retention of any such amount for a dwelling unit occupied by such
39 eligible head of the household shall be deemed a rent overcharge, and
40 upon conviction therefor the housing company and its directors and any
41 employee and any agent responsible therefor shall be guilty of a misde-
42 meanor, punishable by a fine not to exceed one thousand dollars or
43 imprisonment not to exceed six months, or both.
44 7. Any such local law or ordinance may provide that in order to obtain
45 the tax benefits to which it is entitled under this section, a housing
46 company must file with the collecting officer charged with the duty of
47 collecting taxes of the municipality a sworn application, in such form
48 as such officer may prescribe, for any quarterly period in which the
49 housing company has accorded an eligible head of the household an
50 exemption hereunder from the payment of the maximum rent or preferential
51 rent. Subject to prior or subsequent verification thereof, the collect-
52 ing officer shall credit the total amount of such exemptions actually
53 accorded to occupants of dwelling units contained in the property
54 against the real property taxes otherwise payable with respect to the
55 property. The housing company shall attach to such application copies of
56 all rent increase exemption orders/tax abatement certificates issued to
A. 10018 8
1 eligible heads of the household residing in dwelling units in such real
2 property.
3 8. Any such local law or ordinance may provide that in the event that
4 the real property of a housing company containing one or more dwelling
5 units shall be totally exempt from local and municipal real property
6 taxes for any fiscal year as a result of the exemptions from maximum
7 rent or preferential rent credited pursuant to this section, or other-
8 wise, such municipality may make or contract to make payments to a hous-
9 ing company in an amount not exceeding the amount necessary to reimburse
10 the housing company for the total dollar amount of all exemptions from
11 the payment of the maximum rent or preferential rent accorded pursuant
12 to this section to eligible heads of the household residing in dwelling
13 units in such real property.
14 A municipality may create and establish a fund in order to provide for
15 the payments made in accordance with contracts entered into pursuant to
16 this subdivision. There may be paid into such fund (1) all of the rental
17 surcharges collected by the municipality from housing companies organ-
18 ized and existing pursuant to Articles II, IV, V and XI of the private
19 housing finance law and (2) any moneys appropriated or otherwise made
20 available by the municipality for the purpose of such fund.
21 § 4. This act shall take effect immediately; provided that the amend-
22 ments to section 467-b of the real property tax law made by section one
23 of this act shall be subject to the expiration and reversion of such
24 section pursuant to section 17 of chapter 576 of the laws of 1974, as
25 amended, when upon such date the provisions of section two of this act
26 shall take effect.
