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

Title of bill

An act to amend the real property tax law, in relation to tax abatements for dwelling units occupied by certain persons residing in rent-controlled or rent regulated properties, and providing state aid to cities affected by such tax abatements

Summary of provisions

This legislation would extend the Senior Citizen Rent Increase Exemption (SCRIE) and the Disability Rent Increase Exemption (DRIE), as well as to authorize the City of New York to institute a tenant rent increase exemption program (TRIE), for tenants who pay over 50% of their income in rent and who reside within rent controlled, rent regulated, and within certain other types of housing incorporated under the private housing finance law.

Justification

This bill extends the New York City senior citizen rent increase exemption (SCRIE) and the disability rent increase exemption (DRIE) as well as expand such program by establishing authority for the tenant rent increase exemption (TRIE) program.

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, with the state providing 10% of the cost of the revenue loss of the tax abatement to New York City.

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 Legislation

Fiscal implications

The state shall reimburse NYC for 10% of the amount of tax revenue abated from the TRIE program. It is estimated that the program would cost NYC $34 million dollars for the first year of implementation.

Effective date

This act shall take on July 1, 2016.