STATE OF NEW YORK
________________________________________________________________________
7771
2017-2018 Regular Sessions
IN ASSEMBLY
May 15, 2017
___________
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, paragraph (d) of subdivision 2 as added by
8 chapter 343 of the laws of 2016, paragraphs c, d and e of subdivision 3
9 as amended by chapter 188 of the laws of 2005, are amended to read as
10 follows:
11 e. "Increase in maximum rent, preferential rent or legal regulated
12 rent" means any increase in the maximum rent, preferential rent or the
13 legal regulated rent for the dwelling unit in question pursuant to the
14 applicable rent control law, rent stabilization law or to the emergency
15 tenant protection act of nineteen seventy-four, respectively, or such
16 classes of increase thereunder as may be specified in a local law, ordi-
17 nance or resolution enacted pursuant to this section, over such base
18 period rent as shall be provided therein or an exemption from the maxi-
19 mum rent or legal regulated rent as specified in paragraph c or d of
20 subdivision three of this section. Preferential rent for purposes of
21 this section shall mean the same as paragraph fourteen of subdivision c
22 of section 26-511 of the administrative code of the city of New York;
23 2. The governing body of any municipal corporation is hereby author-
24 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.
LBD09829-01-7
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1 the provisions of this section, a local law, ordinance or resolution
2 providing for the abatement of taxes of said municipal corporation
3 imposed on real property containing a dwelling unit as defined herein by
4 one of the following amounts: (a) where the head of the household does
5 not receive a monthly allowance for shelter pursuant to the social
6 services law, an amount not in excess of that portion of any increase in
7 maximum rent, preferential rent or legal regulated rent which causes
8 such maximum rent, preferential rent or legal regulated rent to exceed
9 one-third of the combined income of all members of the household; or
10 (b) where the head of the household receives a monthly allowance for
11 shelter pursuant to the social services law, an amount not in excess of
12 that portion of any increase in maximum rent, preferential rent or legal
13 regulated rent which is not covered by the maximum allowance for shelter
14 which such person is entitled to receive pursuant to the social services
15 law.
16 (c) Provided, however, that in a city of a population of one million
17 or more, where the head of household has been granted a rent increase
18 exemption order that is in effect as of January first, two thousand
19 fifteen or takes effect on or before July first, two thousand fifteen,
20 the amount determined by paragraph (a) of this subdivision shall be an
21 amount not in excess of the difference between the maximum rent, prefer-
22 ential rent or legal regulated rent and the amount specified in such
23 order, as adjusted by any other provision of this section.
24 (d) (1) Provided, however, that in a city with a population of one
25 million or more, a head of the household who has received a rent
26 increase exemption order that has expired and who, upon renewal applica-
27 tion for the period commencing immediately after such expiration, is
28 determined to be ineligible for a rent increase exemption order because
29 the combined income of all members of the household exceeds the maximum
30 amount allowed by this section or the maximum rent, preferential rent or
31 legal regulated rent does not exceed one-third of the combined income of
32 all members of the household, may submit a new application during the
33 following calendar year, and if such head of the household receives a
34 rent increase exemption order that commences during such calendar year,
35 the tax abatement amount for such order shall be calculated as if such
36 prior rent increase exemption order had not expired. However, no tax
37 abatement benefits may be provided for the period of ineligibility.
38 (2) No head of the household may receive more than three rent increase
39 exemption orders calculated as if a prior rent increase exemption order
40 had not expired, as described in subparagraph one of this paragraph.
41 c. upon issuance of a tax abatement certificate as provided in subdi-
42 vision four of this section, the amount set forth in said certificate
43 shall be deducted from the legal maximum rent, legal preferential rent
44 or legal regulated rent chargeable for a dwelling unit of a head of the
45 household.
46 d. notwithstanding any other provision of law, when a head of the
47 household to whom a then current, valid tax abatement certificate has
48 been issued moves his principal residence from one dwelling unit to a
49 subsequent dwelling unit located within the same municipal corporation,
50 the head of the household may apply for a tax abatement certificate
51 relating to the subsequent dwelling unit, and such certificate may
52 provide that the head of the household shall be exempt from paying that
53 portion of the maximum rent, preferential rent or legal regulated rent
54 for the subsequent dwelling unit which is the least of the following:
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1 (1) the amount by which the rent for the subsequent dwelling unit
2 exceeds the last rent, as reduced, which the head of the household was
3 required to actually pay in the original dwelling unit;
4 (2) the last amount deducted from the maximum rent, preferential rent
5 or legal regulated rent pursuant to this section in the original dwell-
6 ing unit; or
7 (3) where the head of the household does not receive a monthly allow-
8 ance for shelter pursuant to the social services law, the amount by
9 which the maximum rent, preferential rent or legal regulated rent of the
10 subsequent dwelling unit exceeds one-third of the combined income of all
11 members of the household, except that this subparagraph shall not apply
12 to a head of the household who has been granted a rent increase
13 exemption order that is in effect as of January first, two thousand
14 fifteen or takes effect on or before July first, two thousand fifteen.
15 e. notwithstanding any other provision of law, when a head of the
16 household to whom a then current, valid tax abatement certificate has
17 been issued moves his principal residence from one dwelling unit subject
18 to the provisions of articles II, IV, V or XI of the private housing
19 finance law to a subsequent dwelling unit subject to either the local
20 emergency housing rent control law or to the emergency tenant protection
21 act of nineteen seventy-four which is located within the same municipal
22 corporation, the head of the household may apply for a tax abatement
23 certificate relating to the subsequent dwelling unit, and such certif-
24 icate may provide that the head of the household shall be exempt from
25 paying that portion of the maximum rent, preferential rent or legal
26 regulated rent for the subsequent dwelling unit which is the least of
27 the following:
28 (1) the amount by which the rent for the subsequent dwelling unit
29 exceeds the last rent, as so reduced, which the head of the household
30 was required to actually pay in the original dwelling unit;
31 (2) the most recent amount so deducted from the maximum rent, prefer-
32 ential rent or legal regulated rent in the original dwelling unit; or
33 (3) where the head of the household does not receive a monthly allow-
34 ance for shelter pursuant to the social services law, the amount by
35 which the maximum rent, preferential rent or legal regulated rent of the
36 subsequent dwelling unit exceeds one-third of the combined income of all
37 members of the household, except that this subparagraph shall not apply
38 to a head of the household who has been granted a rent increase
39 exemption order that is in effect as of January first, two thousand
40 fifteen or takes effect on or before July first, two thousand fifteen.
41 § 2. Paragraph e of subdivision 1, subdivision 2, paragraph c of
42 subdivision 3 and subdivisions 4, 6 and 8 of section 467-b of the real
43 property tax law, as added by chapter 689 of the laws of 1972, subdivi-
44 sion 2 as amended by chapter 553 of the laws of 2015 and paragraph c of
45 subdivision 3 as amended by chapter 188 of the laws of 2005, are amended
46 to read as follows:
47 e. "Increase in preferential rent or maximum rent" means any increase
48 in the preferential rent or maximum rent for the dwelling unit in ques-
49 tion pursuant to the applicable rent stabilization or rent control law
50 respectively, or such classes of increase thereunder as may be specified
51 in a local law, ordinance or resolution enacted pursuant to this
52 section, over such base period rent as shall be provided therein. Pref-
53 erential rent for purposes of this section shall mean the same as para-
54 graph fourteen of subdivision c of section 26-511 of the administrative
55 code of the city of New York;
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1 2. The governing body of any city, town or village is hereby author-
2 ized and empowered to adopt, after public hearing, in accordance with
3 the provisions of this section, a local law, ordinance or resolution
4 providing for the abatement of taxes of said municipal corporation
5 imposed on real property containing a dwelling unit as defined herein by
6 an amount not in excess of that portion of any increase in preferential
7 rent or maximum rent which causes such preferential rent or maximum rent
8 to exceed one-third of the combined income of all members of the house-
9 hold, except that in a city of a population of one million or more where
10 the head of the household has been granted a rent increase exemption
11 order that is in effect as of January first, two thousand fifteen or
12 takes effect on or before July first, two thousand fifteen, such abate-
13 ment of taxes shall be in an amount not in excess of the difference
14 between the preferential rent, maximum rent or legal regulated rent and
15 the amount specified in such order, as adjusted by any other provision
16 of this section.
17 c. upon issuance of a tax abatement certificate as provided in subdi-
18 vision four of this section, the amount of increase in preferential or
19 maximum rent set forth in said certificate shall be deducted from the
20 legal preferential rent or maximum rent chargeable for a dwelling unit
21 of a head of the household.
22 4. The head of the household must apply each year to the appropriate
23 rent control agency for a tax abatement certificate on a form prescribed
24 by said agency. A tax abatement certificate setting forth an amount not
25 in excess of the increase in preferential rent or maximum rent for the
26 taxable period shall be issued by said agency to each head of the house-
27 hold who is found to be eligible under this section on or before the
28 last date prescribed by law for the payment of the taxes or the first
29 installment thereof of any city, town or village which has granted an
30 abatement of taxes. Copies of such certificate shall be issued to the
31 owner of the real property containing the dwelling unit of the head of
32 the household and to the collecting officer charged with the duty of
33 collecting the taxes of each city, town or village which has granted the
34 abatement of taxes authorized by this section.
35 6. The portion of the increase in preferential or maximum rent for the
36 taxable period set forth in a tax abatement certificate shall be
37 deducted from the total taxes levied by or on behalf of the city, town
38 or village which has granted such abatement on real property containing
39 the dwelling unit of a head of the household to whom the certificate has
40 been issued. In the event that both a town and a village included there-
41 in grant such abatement, such deduction for properties located in the
42 village shall be made first from taxes levied by or on behalf of the
43 village and any excess thereof shall be deducted from town taxes.
44 8. Where a tax abatement certificate has been issued to a head of the
45 household as authorized by a local law, ordinance or resolution adopted
46 pursuant to this section and the landlord collects or attempts to
47 collect the increase in the preferential rent or maximum rent for a
48 dwelling unit occupied by such head of the household, the amount of such
49 abatement shall be deemed a rent overcharge under the applicable rent
50 stabilization or rent control law respectively.
51 § 3. Paragraphs h and i of subdivision 1 and subdivisions 3, 5, 6, 7,
52 and 8 of section 467-c of the real property tax law, paragraph h of
53 subdivision 1 and paragraph b of subdivision 3 as amended and paragraph
54 i of subdivision 1 as added by chapter 420 of the laws of 1991, subdivi-
55 sion 3 as amended by chapter 747 of the laws of 1985, subparagraph 3 of
56 paragraph a of subdivision 3 as added and subparagraph 3 of paragraph b
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1 of subdivision 3 and paragraph d of subdivision 3 as amended by chapter
2 553 of the laws of 2015, subparagraph 4 of paragraph a of subdivision 3
3 as added by chapter 343 of the laws of 2016, paragraph c of subdivision
4 3 as added by chapter 17 of the laws of 1987, subdivision 5 as amended
5 by chapter 538 of the laws of 1976 and subdivisions 6, 7 and 8 as added
6 by chapter 208 of the laws of 1975, are amended to read as follows:
7 h. "Increase in maximum rent or preferential rent" means any increase
8 in the maximum rent or preferential rent for the dwelling unit becoming
9 effective on or after the eligibility date, including capital assess-
10 ments and voluntary capital contributions but excluding any increase in
11 maximum rent or preferential rent attributable to gas or electrical
12 utility charges or an increase in dwelling space, services or equipment,
13 or an exemption from the maximum rent, preferential rent or legal regu-
14 lated rent as specified in paragraph b of subdivision three of this
15 section, provided, however, that with respect to any dwelling unit in a
16 dwelling which is or was subject to a mortgage insured or initially
17 insured by the federal government pursuant to section two hundred thir-
18 teen of the National Housing Act, as amended, "increase in maximum rent"
19 shall not include any increase in maximum rent attributable to capital
20 assessments or voluntary capital contributions.
21 i. "Maximum rent or preferential rent" means the maximum rent or pref-
22 erential rent, excluding gas and electric utility charges, which has
23 been authorized or approved by the commissioner or the supervising agen-
24 cy or the legal regulated rent established for the dwelling unit pursu-
25 ant to the provisions of either Article II, IV, V or XI of the private
26 housing finance law, or the rental established for a cooperatively owned
27 dwelling unit previously regulated pursuant to the provisions of Article
28 II, IV, V or XI of the private housing finance law; or such approved
29 rent for a dwelling unit in a dwelling subject to a mortgage insured or
30 initially insured by the federal government pursuant to section two
31 hundred thirteen of the National Housing Act, as amended; or such rent
32 established for a dwelling unit which was subject to a mortgage insured
33 or initially insured by the federal government pursuant to section two
34 hundred thirteen of the National Housing Act, as amended. Preferential
35 rent for purposes of this section shall mean the same as paragraph four-
36 teen of subdivision c of section 26-511 of the administrative code of
37 the city of New York.
38 3. Any such local law or ordinance shall provide that: a. an eligible
39 head of the household may obtain a rent increase exemption order/tax
40 abatement certificate entitling him to an exemption from increases in
41 the maximum rent or preferential rent otherwise payable in one of the
42 following amounts:
43 (1) where the eligible head of the household does not receive a month-
44 ly allowance for shelter pursuant to the social services law, the amount
45 by which increases in the maximum rent or preferential rent subsequent
46 to such person's eligibility date have resulted in the maximum rent or
47 preferential rent exceeding one-third of the combined income of all
48 members of the household for the taxable period, except that in no event
49 shall a rent increase exemption order/tax abatement certificate become
50 effective prior to January first, nineteen hundred seventy-six; or
51 (2) where the eligible head of the household receives a monthly allow-
52 ance for shelter pursuant to the social services law, an amount not
53 exceeding that portion of any increase in maximum rent or preferential
54 rent subsequent to such person's eligibility date which is not covered
55 by the maximum allowance for shelter which such person is entitled to
56 receive pursuant to the social services law.
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1 (3) provided, however, that in a city of a population of one million
2 or more, where the eligible head of the household has been granted a
3 rent increase exemption order as a person with a disability as defined
4 in paragraph m of subdivision one of this section that is in effect as
5 of January first, two thousand fifteen or takes effect on or before July
6 first, two thousand fifteen, the amount determined by subparagraph one
7 of this paragraph shall be an amount not in excess of the difference
8 between the maximum rent or preferential rent and the amount specified
9 in such order, as adjusted by any other provision of this section.
10 (4) (a) Provided, however, that in a city with a population of one
11 million or more, a head of the household who has received a rent
12 increase exemption order that has expired and who, upon renewal applica-
13 tion for the period commencing immediately after such expiration, is
14 determined to be ineligible for a rent increase exemption order because
15 the combined income of all members of the household exceeds the maximum
16 amount allowed by this section or the maximum rent, preferential rent or
17 legal regulated rent does not exceed one-third of the combined income of
18 all members of the household, may submit a new application during the
19 following calendar year, and if such head of the household receives a
20 rent increase exemption order that commences during such calendar year,
21 the tax abatement amount for such order shall be calculated as if such
22 prior rent increase exemption order had not expired. However, no tax
23 abatement benefits may be provided for the period of ineligibility.
24 (b) No head of the household may receive more than three rent increase
25 exemption orders calculated as if a prior rent increase exemption order
26 had not expired, as described in clause (a) of this subparagraph.
27 b. notwithstanding any other provision of law, when a head of the
28 household to whom a then current, valid tax abatement certificate has
29 been issued moves his principal residence from one dwelling unit subject
30 to this section, to the local emergency housing rent control law or to
31 the emergency tenant protection act of nineteen seventy-four to a subse-
32 quent dwelling unit which is subject to the provisions of articles II,
33 IV, V or XI of the private housing finance law or which is or was
34 subject to a mortgage insured or initially insured by the federal
35 government pursuant to section two hundred thirteen of the National
36 Housing Act, as amended, and which is located within the same municipal
37 corporation, the head of the household may apply for a tax abatement
38 certificate relating to the subsequent dwelling unit, subject to any
39 terms and conditions imposed by reason of any fund created under subdi-
40 vision eight of this section, and such certificate may provide that the
41 head of the household shall be exempt from paying that portion of the
42 maximum rent, preferential rent or legal regulated rent for the subse-
43 quent dwelling unit which is the least of the following:
44 (1) the amount by which the rent for the subsequent dwelling unit
45 exceeds the last rent, as so reduced, which the head of the household
46 was required to actually pay in the original dwelling unit;
47 (2) the most recent amount so deducted from the maximum rent, prefer-
48 ential rent or legal regulated rent in the original dwelling unit; or
49 (3) where the head of the household does not receive a monthly allow-
50 ance for shelter pursuant to the social services law, the amount by
51 which the maximum rent, preferential rent or legal regulated rent of the
52 subsequent dwelling unit exceeds one-third of the combined income of all
53 members of the household, except that this subparagraph shall not apply
54 to a head of the household who has been granted a rent increase
55 exemption order as a person with a disability as defined in paragraph m
56 of subdivision one of this section that is in effect as of January
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1 first, two thousand fifteen or takes effect on or before July first, two
2 thousand fifteen.
3 c. Notwithstanding any other provision of law, when a dwelling unit
4 subject to the provisions of article II, IV, V or XI of the private
5 housing finance law or subject to a mortgage insured or initially
6 insured by the federal government pursuant to section two hundred thir-
7 teen of the national housing act, as amended, is later reclassified by
8 order of the commissioner, the supervising agency or any other govern-
9 mental agency supervising such dwelling unit, or by operation of law to
10 a dwelling unit subject to any of the provisions of article II, IV, V or
11 XI of the private housing finance law, the rent stabilization law of
12 nineteen hundred sixty-nine of the city of New York or the emergency
13 tenant protection act of nineteen seventy-four, or when a dwelling unit
14 subject to such rent stabilization law or such emergency tenant
15 protection act, or subject to the emergency housing rent control law or
16 to the rent and rehabilitation law of the city of New York enacted
17 pursuant to the local emergency housing rent control act, is reclassi-
18 fied by order of the commissioner or the supervising agency or by opera-
19 tion of law to a dwelling unit subject to any of the aforementioned
20 provisions of the private housing finance law or subject to a mortgage
21 insured or initially insured by the federal government pursuant to
22 section two hundred thirteen of the national housing act, as amended, a
23 head of the household who held or holds a valid rent increase exemption
24 order at the time of the reclassification shall be issued a rent
25 increase exemption order under applicable law continuing the previous
26 exemption notwithstanding the reclassification of the dwelling unit.
27 d. notwithstanding any other provision of law to the contrary, where a
28 eligible head of the household holds a current, valid rent increase
29 exemption order/tax abatement certificate and, after the effective date
30 of this paragraph, there is a permanent decrease in income in an amount
31 which exceeds twenty percent of such income as represented in such
32 eligible head of household's last approved application for a rent
33 increase exemption order/tax abatement certificate or for renewal there-
34 of, such eligible head of the household may apply for a redetermination
35 of the amount set forth therein. Upon application, such amount shall be
36 redetermined so as to re-establish the ratio of adjusted rent to income
37 which existed at the time of approval of such eligible head of the
38 household's last application for a rent increase exemption order/tax
39 abatement certificate or for renewal thereof; provided, however, that in
40 no event shall the amount of the adjusted rent be redetermined to be (i)
41 in the case of an eligible head of the household who does not receive a
42 monthly allowance for shelter pursuant to the social services law, less
43 than one-third of income unless such head of the household has been
44 granted a rent increase exemption order as a person with a disability as
45 defined in paragraph m of subdivision one of this section that is in
46 effect as of January first, two thousand fifteen or takes effect on or
47 before July first, two thousand fifteen; or (ii) in the case of an
48 eligible head of the household who receives a monthly allowance for
49 shelter pursuant to the social services law, less than the maximum
50 allowance for shelter which such eligible head of the household is enti-
51 tled to receive pursuant to law. For purposes of this paragraph, a
52 decrease in income shall not include any decrease in income resulting
53 from the manner in which income is calculated pursuant to any amendment
54 to paragraph f of subdivision one of this section made on or after April
55 first, nineteen hundred eighty-seven. For purposes of this paragraph,
56 "adjusted rent" shall mean maximum rent or preferential rent less the
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1 amount set forth in a rent increase exemption order/tax abatement
2 certificate.
3 5. Any such local law or ordinance may provide that the effective date
4 of a rent increase exemption order/tax abatement certificate shall be
5 the date of the first increase in maximum rent or preferential rent
6 becoming effective after the applicant's eligibility date except that in
7 no event shall a rent increase exemption order/tax abatement certificate
8 become effective prior to January first, nineteen hundred seventy-six.
9 6. Any such local law or ordinance may provide that upon receipt of a
10 copy of the rent increase exemption order/tax abatement certificate, the
11 housing company managing the dwelling unit of the eligible head of the
12 household shall promptly accord to the eligible head of the household
13 covered by such order/certificate the appropriate credit against the
14 monthly maximum rent or preferential rent then or thereafter payable. To
15 the extent the full amount of such credit has not been accorded for any
16 past period since the effective date specified in the order/certificate,
17 the housing company shall credit the total aggregate amount not so cred-
18 ited to the monthly maximum rent or preferential rent next payable or to
19 such subsequent monthly maximum rents as the supervising agency may
20 authorize. It shall be illegal to collect any amount for which a rent
21 increase exemption order/tax abatement certificate provides credit or to
22 withhold credit for any such amounts already collected, and collection
23 or retention of any such amount for a dwelling unit occupied by such
24 eligible head of the household shall be deemed a rent overcharge, and
25 upon conviction therefor the housing company and its directors and any
26 employee and any agent responsible therefor shall be guilty of a misde-
27 meanor, punishable by a fine not to exceed one thousand dollars or
28 imprisonment not to exceed six months, or both.
29 7. Any such local law or ordinance may provide that in order to obtain
30 the tax benefits to which it is entitled under this section, a housing
31 company must file with the collecting officer charged with the duty of
32 collecting taxes of the municipality a sworn application, in such form
33 as such officer may prescribe, for any quarterly period in which the
34 housing company has accorded an eligible head of the household an
35 exemption hereunder from the payment of the maximum rent or preferential
36 rent. Subject to prior or subsequent verification thereof, the collect-
37 ing officer shall credit the total amount of such exemptions actually
38 accorded to occupants of dwelling units contained in the property
39 against the real property taxes otherwise payable with respect to the
40 property. The housing company shall attach to such application copies of
41 all rent increase exemption orders/tax abatement certificates issued to
42 eligible heads of the household residing in dwelling units in such real
43 property.
44 8. Any such local law or ordinance may provide that in the event that
45 the real property of a housing company containing one or more dwelling
46 units shall be totally exempt from local and municipal real property
47 taxes for any fiscal year as a result of the exemptions from maximum
48 rent or preferential rent credited pursuant to this section, or other-
49 wise, such municipality may make or contract to make payments to a hous-
50 ing company in an amount not exceeding the amount necessary to reimburse
51 the housing company for the total dollar amount of all exemptions from
52 the payment of the maximum rent or preferential rent accorded pursuant
53 to this section to eligible heads of the household residing in dwelling
54 units in such real property.
55 A municipality may create and establish a fund in order to provide for
56 the payments made in accordance with contracts entered into pursuant to
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1 this subdivision. There may be paid into such fund (1) all of the rental
2 surcharges collected by the municipality from housing companies organ-
3 ized and existing pursuant to Articles II, IV, V and XI of the private
4 housing finance law and (2) any moneys appropriated or otherwise made
5 available by the municipality for the purpose of such fund.
6 § 4. This act shall take effect immediately; provided that the amend-
7 ments to section 467-b of the real property tax law made by section one
8 of this act shall be subject to the expiration and reversion of such
9 section pursuant to section 17 of chapter 576 of the laws of 1974, as
10 amended, when upon such date the provisions of section two of this act
11 shall take effect.
