Relates to increasing the tax abatement income limit

Title of bill

An act to amend the real property tax law, in relation to tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities

Purpose or general idea of bill

To allow localities to raise the income eligibility limits for the Senior Citizen Rent Increase Exemption (SCRIE) or Disabled Rent Increase Exemption (DRIE) program to $55,000 beginning on July 1, 2016.

Summary of specific provisions

Section 1. Paragraphs a and b of subdivision 3 of section 467-b of the real property tax law, paragraph a, as amended by section 1 of part U of chapter 55 of the laws of 2014, and paragraph b, as amended by chapter 129 of the laws of 23014, are amended to allow an income of fifty-five thousand dollars beginning July 1, 2016, and still be eligible for SCRIE and DRIE.

Justification

The Senior Citizen Rent Increase Exemption is a program that can freeze the rents for senior citizens living in rent stabilized, rent-controlled, Mitchell-Lama and Redevelopment Company buildings (both tenants and co-op shareholders are eligible), Housing Development Fund Corporation co-ops, and federally assisted co-ops.

The current income eligibility limit for SCRIE and DRIE is $50,000. These programs are not adjusted for cost of living increases or inflation. These programs provide a vital service by allowing eligible senior and disabled residents to remain in their homes and communities by keeping their rents affordable. SCRIE and DRIE freeze rents for low-income seniors and people with disabilities living in rent-regulated housing who pay one-third or more of their income in rent.

Increases in the cost of living and the continued stagnation of wages make it difficult for many seniors and persons with disabilities to make ends meet, regardless of whether they rent or own their homes. Both low-and middle-income residents are subject to the burden of escalating costs. Senior citizens and those with disabilities often rely on a fixed income and homeowners typically have their primary wealth invested in their property. Also, elderly and disabled residents are often burdened with higher-than average healthcare costs. The cost of living in New York City in particular makes it difficult for persons with low incomes to make ends meet. By exempting low income seniors and the disabled from rent increases, this bill will help prevent some of New York's most vulnerable residents from being forced to give up their homes.

Prior legislative history

NEW BILL.

Fiscal implications

None to the state.

Effective date

July 1, 2016.