Relates to the definition of income for purposes of the senior citizen rent increase exemptions (SCRIE) program

Summary of specific provisions

Section 1 paragraph c of subdivision 1 of section 467-b of the real property tax law, as amended by chapter 500 of the laws of 2001, is amended to read that income shall not include income from social security benefits or supplemental security income payments if the governing board of the municipality in which the senior citizen resides, after public hearing, adopts a local law, ordinance, or resolution electing to exempt such benefits and payments.

Section 2 paragraph f of subdivision 1 of section 467-C of the real property tax law, as amended by chapter 500 of the laws of 2001, is amended to read that provided however, that income shall not include income from social security benefits or supplemental security income payments if the governing board of the municipality in which the senior citizen resides, after public hearing, adopts a local law, ordinance, or resolution electing to exempt such benefits and payments.

Section 3 Effective date.

Justification

Each year the rate of inflation increases at a far greater rate than the increases in social security income benefits. This puts many senior citizens who live in. New York city in a very difficult financial position. It is no secret that a large portion of a senior citizen's income in,NYC is applied towards housing costs; adding these costs with the price of healthcare and prescription drugs puts seniors in a fiscal crisis. This bill would work towards solving that crisis by excluding social security income from the calculation for eligibility in the SCRIE program, therefore allowing more seniors to enroll and take part in the benefits of stabilized rent rates. This in turn would allow seniors to apply the money they would have had to use for the increase in rent towards food, prescription drugs and other necessities.

It is no secret that a large portion of a senior citizen's income in NYC is applied towards housing costs; adding these costs with the price of healthcare and prescription drugs puts seniors in a fiscal crisis. This bill would work towards solving that crisis by excluding social security income from the calculation for eligibility in the SCRlE program, therefore allowing more seniors to enroll and take part in the benefits of stabilized rent rates. This in turn would allow

seniors to apply the money they would have had to use for the increase in rent towards food, prescription drugs and other necessities.

Prior legislative history

2009-10: S.3498 - Passed Aging; Referred to Finance; Recommitted to Aging 2007-08: S.1326 - Referred to Local Government 2006: S.6980 - Referred to Aging

Fiscal implications

From a fiscal note prepared on 3/4/10:

"None to the State. Excluding social secondary benefits and supplemental security income payments from the definition of income would greatly expand eligibility for the SCRIE and the DRIE programs by increasing the population of participants resulting in additional costs for municipalities that provide the programs.

Currently, the SCRIE program costs New York City $125 million per year, and the DRIE program costs $7.5 million per year. The City estimates the combined cost of this expansion to be $5 million that first year, $11 million the second year, $16 million the third year and $28 million the fourth year, which would grow to $62 million by the tenth year after eligibility requirements are implemented.

In addition to New York City, other municipalities that participate in the program would also incur increased yearly costs from the expansion of the program. However, this bill does not automatically expand eligibility as the local legislative body in the municipality providing the program must approve the language before new requirements are to go into effect."

Effective date

Immediately, provided that the amendments to paragraph c of subdivision 1 of section 467-b of the real property tax law, made by section one of this act, shall not affect the expiration of such section and shall be deemed to expire therewith.