What's happening
This bill allows New York City to grant property tax abatements for certain rent-restricted housing units, including those with specific agreements to limit rent increases, subject to approval by the city's housing department.
Why it matters
Expands eligibility for tax abatements. to include certain rent-restricted units that may have exited traditional rent regulation, as long as landlords and tenants have agreements to cap rent increases—potentially helping seniors and other protected tenants stay in their homes even as formal regulatory coverage changes.
Provides flexibility in rent increase limits. by allowing agreements where rent increases can be set below, at, or even above the amounts dictated by the rent guidelines board, as long as both the tenant and landlord agree—creating tailored arrangements that could encourage more landlords to participate in affordability programs.
Requires city housing department approval. for all tax abatement applications under these provisions, adding an additional layer of oversight and ensuring that abatements are only granted when they meet the city’s housing policy goals.
Could incentivize preservation of affordable housing. in buildings that are no longer formally regulated, by offering property tax relief in exchange for maintaining rent restrictions—potentially slowing the loss of affordable units in New York City’s high-cost market.
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Expand NYC Tax Abatements
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Tax Abatement Options
In Senate Committee · Local Government · Sponsor Brian Kavanagh
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6231
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to local laws, ordinances or resolutions providing for the abatement of taxes in a city with a population of one million or more persons
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph a of subdivision 1 of section 467-b of the real property tax law, as amended by chapter 576 of the laws of 1974, is amended to read as follows:
a. "Dwelling unit" means that part of a dwelling in which a head of the household resides and which is subject to either the emergency housing rent control law or to the rent and rehabilitation law of the city of New York enacted pursuant to the local emergency housing rent control law, or to the emergency tenant protection act of nineteen seventy-four or is a dwelling unit contained in real property described in subdivision eleven of this section;
§ 2. Paragraph a of subdivision 1 of section 467-b of the real property tax law, as amended by chapter 689 of the laws of 1972, is amended to read as follows:
a. "Dwelling unit" means that part of a dwelling in which a head of the household resides and which is subject to either emergency housing rent control law or to rent and rehabilitation law of the city of New York enacted pursuant to the local law enacted pursuant to the local emergency housing rent control law or is a dwelling unit contained in real property described in subdivision eleven of this section;
§ 3. Section 467-b of the real property tax law is amended by adding a new subdivision 11 to read as follows:
11. In a city with a population of one million or more, any such local law, ordinance or resolution may provide for the abatement of taxes of such city imposed on:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11633-01-7
S. 6231 2
(a) real property originally organized pursuant to article two of the private housing finance law containing dwelling units in which the qualifying head of household or their qualifying successor in interest: (i) has a signed agreement with the landlord to limit increases in maximum rent to an amount based on what is ordered by the rent guidelines board for the lifetime of the tenancy, which amount may be less than, equal to, or greater than the amount so ordered by the rent guidelines board, and (ii) is otherwise eligible for the tax abatement provided in this section, regardless of whether such real property is still subject to the regulations of said article; or
(b) real property containing dwelling units in which the qualifying head of household or their qualifying successor in interest: (i) has a signed agreement with the landlord to limit increases in maximum rent to an amount equal to or less than those ordered by the rent guidelines board for the lifetime of the tenancy, and (ii) is otherwise eligible for the tax abatement provided in this section;
(c) provided, however, that the application for any abatement pursuant to this subdivision shall be subject to the approval of the New York city department of housing preservation and development, in such department's discretion.
§ 4. Paragraph b of subdivision 1 of section 467-c of the real property tax law, as amended by chapter 420 of the laws of 1991, is amended to read as follows:
b. "Dwelling unit" means that part of a dwelling in which an eligible head of the household resides and which is subject to the provisions of either Article II, IV, V, or XI of the private housing finance law; or that part of a dwelling which was or continues to be subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the National Housing Act, as amended, in which an eligible head of the household resides or is a unit in a housing development described in subdivision thirteen of this section.
§ 5. Section 467-c of the real property tax law is amended by adding a new subdivision 13 to read as follows:
13. In a city with a population of one million or more, any such local law, ordinance or resolution may provide for the abatement of taxes of such city imposed on:
(a) real property originally organized pursuant to article two of the private housing finance law containing dwelling units in which the qualifying head of household or their qualifying successor in interest: (i) has a signed agreement with the landlord to limit increases in maximum rent to an amount based on what is ordered by the rent guidelines board for the lifetime of the tenancy, which amount may be less than, equal to, or greater than the amount so ordered by the rent guidelines board, and (ii) is otherwise eligible for the tax abatement provided in this section, regardless of whether such real property is still subject to the regulations of said article; or
(b) real property containing dwelling units in which the qualifying head of household or their qualifying successor in interest: (i) has a signed agreement with the landlord to limit increases in maximum rent to an amount equal to or less then those ordered by the rent guidelines board for the lifetime of the tenancy, and (ii) is otherwise eligible for the tax abatement provided in this section;
(c) provided, however, that the application for any abatement pursuant to this subdivision shall be subject to the approval of the New York city department of housing preservation and development, in such department's discretion.
S. 6231 3
§ 6. This act shall take effect immediately; provided, however, that:
(a) the amendments to paragraph a of subdivision 1 of section 467-b of the real property tax law made by section one 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, as amended, when upon such date the provisions of section two of this act shall take effect; and
(b) the amendments to section 467-b of the real property tax law made by section three of this act shall survive the expiration and reversion of such section as provided in section 17 of chapter 576 of the laws of 1974, as amended.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to local laws, ordinances or resolutions providing for the abatement of taxes in a city with a population of one million or more persons
Purpose
The purpose of this bill is to expand eligibility for SCRIE and DRIE to tenants whose landlords have entered into voluntary agreements to base future rent increases on rules established by the Rent Guidelines Board (RGB).
Summary of provisions
Sections 1-5 amend section 467-b and 467-c of the real property tax law by making "dwelling units" eligible for the Senior Citizen Rent Increase Exemption (SCRIE) and the Disability Rent Increase Exemption (DRIB) if there was an agreement providing for rent increases based on the amount ordered by the RGB.
Section 6 of the bill establishes the effective date.
Justification
In order to qualify for SCRIE or DRIE, a person must meet certain age and income qualifications. In addition, residents must pay more than one-third of their monthly household income on rent and live in a rent regulated apartment. Tenants who could qualify for these programs, but do not live in rent regulated apartments are not eligible.
There are a number of buildings in New York City where landlords of deregulated units have agreed to base future rent increases on rules established by the Rent Guidelines Board, essentially tying the rent of these deregulated units to rent regulated rent increases.
This bill would expand eligibility for SCRIE and DRIE to tenants whose landlords have entered into voluntary agreements to base future rent increases on rules established by the Rent Guidelines Board.
Legislative history
2016: S6244 - PASSED AGING AND REFERRED TO FINANCE
Fiscal implications
Minimal Fiscal Impact
Effective date
Shall take effect immediately; provided, however, that: *The amendments to paragraph a of subdivision 1 of section 467-b of the real property tax law made by section one of this act shall be subject the expiration and reversion of such section pursuant to section 17 of chapter 576 of the laws of 1974, as amended, when upon such date the provisions of section two of this act shall take effect; and *the amendments to section 467-b of the real property tax law made by section three of this act shall survive the expiration and reversion of such section as provided in section 17 of chapter 576 of the laws of 1974, as amended.
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