Grants real property tax abatement to rent-controlled or rent regulated properties when the maximum authorized rent exceeds 1/2 of the tenants' household income

Section 5 and Section 6 amend real property tax law section 467-c to provide that a person who lives in a dwelling unit which is in a building which has been federally insured under Section 213 of the National Housing Act, owned by a Mitchell Lama development, limited dividend housing company, redevelopment company, or Housing Development Fund Corporation, who is the head of a head of household who is not otherwise receiving a senior citizen rent increase exemption or a disability based rent increase exemption under section 467-c, or a monthly shelter allowance pursuant to the social services law, and who pays more than 50% of his or her income for rent, shall be eligible for a tenant rent increase exemption.

Justification

This bill expands upon the very successful New York City senior citizen rent increase exemption (SCRIE) and the disability rent increase exemption (DRIE).

This program is otherwise known as the NYC Rent Freeze Program, and is administered by the NYC Department of Finance pursuant to state enabling legislation. The existing SCRIE and DRIE programs provide that seniors and the disabled residing in rent controlled, rent stabilized and certain otherwise limited profit housing, pay no more than 30% of their income for rent. This program helps eligible seniors(age 62 and over) and tenants with qualifying disabilities stay in affordable housing by freezing their rent. The program protects eligible tenants from future rent increases while providing property owners with tax abatements equal to the dollar value of the rent increases they are entitled to.

The tenant increase exemption program would operate under the same general administrative parameters as the existing SCRIE and DRIE programs.

TRIE would target housing assistance to the most assist those low income individuals and heads of households that shoulder a disproportionate rent burden and pay over 50% of their income in rent. This program provides relief to those who, after paying their housing costs, have the least amount of income left to acquire the necessities of daily living.

Legislative history

New Bill.

Fiscal implications

None to the State.

Effective date

This act shall take effect July 1, 2016; provided however, that a. the amendments to section 467-b of the real property tax law, made by sections one, two, three and five of this act shall be subject to the expiration and reversion of such section pursuant to section 17 of chapter 576 of the laws of 1974, and shall expire and be deemed repealed therewith; b. the amendments to paragraph a of subdivision 3 of section 467-b of the real property tax law, made by section four of this act shall be subject to the expiration of such paragraph pursuant to section 4 of part U of chapter 55 of the laws of 2014, as amended, and shall be deemed to expire therewith, when upon such date section five of this act shall take effect; and c. the amendments to subparagraph (1) of paragraph d of subdivision 1 of section 476-c of the real property tax law, made by section six of this act shall not affect the expiration of such subparagraph pursuant to section 4 of part U of chapter 55 of the laws of 2014, as amended, and shall expire and be deemed repealed therewith, when upon such date section seven of this act shall take effect.