Provides that people receiving a United States Postal Service disability pension are eligible to participate in the disability rent increase exemption program

Section 2 amends subdivision 5 of section 467-b of the real property tax law, as amended by section 2 of chapter 188 of the laws of 2005 to include disability pension or disability compensation benefits provided by the United States Postal Service.

Section 3 Effective Date.

Justification

Current law governing the Disability and Rent Increase Exemption program, commonly known as the DRIE program, excludes individuals who receive United States Postal Service (USPS) disability pensions. The total amount of these benefits typically makes a person financially ineligible to receive disability benefits under the Social Security Administration's (SSA) Supplemental Security Income program. Because USPS disability pension recipients are not eligible for to receive SSA, there are therefore disqualified from participating in the DRIE program and denied by New York City's Department of Finance.

The Disability Rent Increase Exemption (DRIE, also known as the NYC Rent Freeze Program) is an exemption against future rent increases for eligible disabled persons living in rent-controlled, rent-stabilized, Mitchell-Lama and other eligible apartments. All applicants must meet certain eligibility requirements for DRIE benefit and landlords of DRIE tenants receive tax credits to make up the difference between the frozen rent and what the DRIE tenants would be paying without the benefit.

New York City's DRIE Program, authorized under N.Y.C. Administrative Code Title 26, Chapter 4, which is authorized under New York State Real Property Tax Law section 467-b, therefore excludes disabled persons who only source of income is a USPS disability pension.

A USPS disability pension is typically a person's only source of income, leaving them facing serious financial hardships, often having to forego many necessities because their limited income does not keep pace with rises in their rent.

Conversely, Real Property Tax Law, section 459-c, known as the Disabled Homeowner's Exemption Program (DHE), allows municipalities to adopt a local law protection certain disabled individuals who own real property from increases in real property tax exemptions.

In 2000, RPTL Section 459-c was amended by expanding the definition of disability to include individuals who receive USPS disability pensions. New York City's DHE program protects certain disabled individuals who have an ownership interest in real property from real property tax increases.

In 2000, New York City amended N.Y.C. Administrative Code Title II, by expanding the definition of disability to include individuals who receive USPS disability pensions to qualify under the DHE program.

There is no conceivable reason why renters who receive a USPS disability pension are precluded from participating in New York City's DRIE while a home owner who receives the same pension (an no benefits from SSA) is eligible to participate in the DHE program.

The State's DHE state was amended to include USPS disability pensions in 2000, and the then amendment sponsors acknowledged that the new law would correct the inequitable treatment of postal service disability workers. This current bill will do the same for renter's receiving the same pension.

Legislative history

A new bill.

Fiscal implications

None to the state.

Local fiscal implications

Minimal.

Effective date

This act shall take effect immediately, provided, however, that the amendments to subdivision 5 of section 467-b of the real property tax law made by section one of this act shall not affect the expiration and reversion of such section and shall expire and be deemed repealed therewith, when upon such date the provisions of section two of this act shall take effect.