Provides for a continuation of senior citizen rent increase exemption benefits after a period of ineligibility

1 Co-sponsor

• Tony Avella

BILL NUMBER:S5495

Title of bill

An act to amend the administrative code of the city of New York, in relation to continuation of senior citizen rent increase exemption benefits after a period of ineligibility due to a head of household's temporary increase in income

Purpose or general idea of bill

The purpose of this legislation is to guarantee that recipients of the SCRIE benefit not be subject to hindsight rent increases due to a period of ineligibility.

Summary of specific provisions

This bill will amend section 26-605 of the administrative code of the city of New York by adding a new subdivision (e).

Justification

As it exists today, the SCRIE program contains a loophole that significantly hurts those senior citizens it is intended to help. Very frequently, a senior may see his or her income experience an anomalous spike, because of the need to take an additional distribution from an IRA or a pension to cover medical expenses, for example, or other one-time increases in income. This income spike will disqualify the applicant from the benefit. When the senior's income returns to normal, and the beneficiary re-applies, his or her rent gets frozen not at the old level, but at the current, higher foil legal rent, which is greater than the previously frozen rent. This sudden income spike can effectively push tenants out of the apartments SCRIE was intended to keep them in.

This legislation will prevent the disqualification of seniors from the program because of one-time spikes in income within two years.

Prior legislative history

A.10763

Fiscal implications

Unknown

Effective date

This act shall take effect immediately and shall apply to relevant applications for the senior citizen rent increase exemption benefits filed on or after such date.