Cap Rent Hikes for Seniors

Section 1. Paragraph e of subdivision 1, subdivision 2 and paragraphs c, d, and e of subdivision 3 of section 467-b of the real property tax law, paragraph e of subdivision 1 as amended by chapter 555 of the laws of 1977, subdivision 2 as amended by chapter 747 of the laws of 1985, paragraph (c) of subdivision 2 as added and subparagraph 3 of paragraph d and subparagraph 3 of paragraph e of subdivision 3 as amended by chapter 553 of the laws of 2015, paragraph (d) of subdivision 2 as added by chapter 343 of the laws of 2016, paragraphs c, d and e of subdivision 3 as amended by chapter 188 of the laws of 2005, are amended to read as follows:

e. "Increase in maximum rent, preferential rent or legal regulated rent" means any increase in the maximum rent, preferential rent or the legal regulated rent for the dwelling unit in question pursuant to the applicable rent control law, rent stabilization law or to the emergency tenant protection act of nineteen seventy-four, respectively, or such classes of increase thereunder as may be specified in a local law, ordinance or resolution enacted pursuant to this section, over such base period rent as shall be provided therein or an exemption from the maximum rent or legal regulated rent as specified in paragraph c or d of subdivision three of this section. Preferential rent for purposes of this section shall mean the same as paragraph fourteen of subdivision c of section 26-511 of the administrative code of the city of New York;

2. The governing body of any municipal corporation is hereby authorized and empowered to adopt, after public hearing, in accordance with

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD09435-01-9

A. 5228 2

the provisions of this section, a local law, ordinance or resolution providing for the abatement of taxes of said municipal corporation imposed on real property containing a dwelling unit as defined herein by one of the following amounts: (a) where the head of the household does not receive a monthly allowance for shelter pursuant to the social services law, an amount not in excess of that portion of any increase in maximum rent, preferential rent or legal regulated rent which causes such maximum rent, preferential rent or legal regulated rent to exceed one-third of the combined income of all members of the household; or

(b) where the head of the household receives a monthly allowance for shelter pursuant to the social services law, an amount not in excess of that portion of any increase in maximum rent, preferential rent or legal regulated rent which is not covered by the maximum allowance for shelter which such person is entitled to receive pursuant to the social services law.

(c) Provided, however, that in a city of a population of one million or more, where the head of household has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen, the amount determined by paragraph (a) of this subdivision shall be an amount not in excess of the difference between the maximum rent, preferential rent or legal regulated rent and the amount specified in such order, as adjusted by any other provision of this section.

(d) (1) Provided, however, that in a city with a population of one million or more, a head of the household who has received a rent increase exemption order that has expired and who, upon renewal application for the period commencing immediately after such expiration, is determined to be ineligible for a rent increase exemption order because the combined income of all members of the household exceeds the maximum amount allowed by this section or the maximum rent, preferential rent or legal regulated rent does not exceed one-third of the combined income of all members of the household, may submit a new application during the following calendar year, and if such head of the household receives a rent increase exemption order that commences during such calendar year, the tax abatement amount for such order shall be calculated as if such prior rent increase exemption order had not expired. However, no tax abatement benefits may be provided for the period of ineligibility.

(2) No head of the household may receive more than three rent increase exemption orders calculated as if a prior rent increase exemption order had not expired, as described in subparagraph one of this paragraph.

c. upon issuance of a tax abatement certificate as provided in subdivision four of this section, the amount set forth in said certificate shall be deducted from the legal maximum rent, legal preferential rent or legal regulated rent chargeable for a dwelling unit of a head of the household.

d. notwithstanding any other provision of law, when a head of the household to whom a then current, valid tax abatement certificate has been issued moves his principal residence from one dwelling unit to a subsequent dwelling unit located within the same municipal corporation, the head of the household may apply for a tax abatement certificate relating to the subsequent dwelling unit, and such certificate may provide that the head of the household shall be exempt from paying that portion of the maximum rent, preferential rent or legal regulated rent for the subsequent dwelling unit which is the least of the following:

A. 5228 3

(1) the amount by which the rent for the subsequent dwelling unit exceeds the last rent, as reduced, which the head of the household was required to actually pay in the original dwelling unit;

(2) the last amount deducted from the maximum rent, preferential rent or legal regulated rent pursuant to this section in the original dwelling unit; or

(3) where the head of the household does not receive a monthly allowance for shelter pursuant to the social services law, the amount by which the maximum rent, preferential rent or legal regulated rent of the subsequent dwelling unit exceeds one-third of the combined income of all members of the household, except that this subparagraph shall not apply to a head of the household who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen.

e. notwithstanding any other provision of law, when a head of the household to whom a then current, valid tax abatement certificate has been issued moves his principal residence from one dwelling unit subject to the provisions of articles II, IV, V or XI of the private housing finance law to a subsequent dwelling unit subject to either the local emergency housing rent control law or to the emergency tenant protection act of nineteen seventy-four which is located within the same municipal corporation, the head of the household may apply for a tax abatement certificate relating to the subsequent dwelling unit, and such certificate may provide that the head of the household shall be exempt from paying that portion of the maximum rent, preferential rent or legal regulated rent for the subsequent dwelling unit which is the least of the following:

(1) the amount by which the rent for the subsequent dwelling unit exceeds the last rent, as so reduced, which the head of the household was required to actually pay in the original dwelling unit;

(2) the most recent amount so deducted from the maximum rent, preferential rent or legal regulated rent in the original dwelling unit; or

(3) where the head of the household does not receive a monthly allowance for shelter pursuant to the social services law, the amount by which the maximum rent, preferential rent or legal regulated rent of the subsequent dwelling unit exceeds one-third of the combined income of all members of the household, except that this subparagraph shall not apply to a head of the household who has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen.

§ 2. Paragraph e of subdivision 1, subdivision 2, paragraph c of subdivision 3 and subdivisions 4, 6 and 8 of section 467-b of the real property tax law, as added by chapter 689 of the laws of 1972, subdivision 2 as amended by chapter 553 of the laws of 2015 and paragraph c of subdivision 3 as amended by chapter 188 of the laws of 2005, are amended to read as follows:

e. "Increase in preferential rent or maximum rent" means any increase in the preferential rent or maximum rent for the dwelling unit in question pursuant to the applicable rent stabilization or rent control law respectively, or such classes of increase thereunder as may be specified in a local law, ordinance or resolution enacted pursuant to this section, over such base period rent as shall be provided therein. Preferential rent for purposes of this section shall mean the same as paragraph fourteen of subdivision c of section 26-511 of the administrative code of the city of New York;

A. 5228 4

2. The governing body of any city, town or village is hereby authorized and empowered to adopt, after public hearing, in accordance with the provisions of this section, a local law, ordinance or resolution providing for the abatement of taxes of said municipal corporation imposed on real property containing a dwelling unit as defined herein by an amount not in excess of that portion of any increase in preferential rent or maximum rent which causes such preferential rent or maximum rent to exceed one-third of the combined income of all members of the household, except that in a city of a population of one million or more where the head of the household has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen, such abatement of taxes shall be in an amount not in excess of the difference between the preferential rent, maximum rent or legal regulated rent and the amount specified in such order, as adjusted by any other provision of this section.

c. upon issuance of a tax abatement certificate as provided in subdivision four of this section, the amount of increase in preferential or maximum rent set forth in said certificate shall be deducted from the legal preferential rent or maximum rent chargeable for a dwelling unit of a head of the household.

4. The head of the household must apply each year to the appropriate rent control agency for a tax abatement certificate on a form prescribed by said agency. A tax abatement certificate setting forth an amount not in excess of the increase in preferential rent or maximum rent for the taxable period shall be issued by said agency to each head of the household who is found to be eligible under this section on or before the last date prescribed by law for the payment of the taxes or the first installment thereof of any city, town or village which has granted an abatement of taxes. Copies of such certificate shall be issued to the owner of the real property containing the dwelling unit of the head of the household and to the collecting officer charged with the duty of collecting the taxes of each city, town or village which has granted the abatement of taxes authorized by this section.

6. The portion of the increase in preferential or maximum rent for the taxable period set forth in a tax abatement certificate shall be deducted from the total taxes levied by or on behalf of the city, town or village which has granted such abatement on real property containing the dwelling unit of a head of the household to whom the certificate has been issued. In the event that both a town and a village included therein grant such abatement, such deduction for properties located in the village shall be made first from taxes levied by or on behalf of the village and any excess thereof shall be deducted from town taxes.

8. Where a tax abatement certificate has been issued to a head of the household as authorized by a local law, ordinance or resolution adopted pursuant to this section and the landlord collects or attempts to collect the increase in the preferential rent or maximum rent for a dwelling unit occupied by such head of the household, the amount of such abatement shall be deemed a rent overcharge under the applicable rent stabilization or rent control law respectively.

§ 3. Paragraphs h and i of subdivision 1 and subdivisions 3, 5, 6, 7, and 8 of section 467-c of the real property tax law, paragraph h of subdivision 1 and paragraph b of subdivision 3 as amended and paragraph i of subdivision 1 as added by chapter 420 of the laws of 1991, subdivision 3 as amended by chapter 747 of the laws of 1985, subparagraph 3 of paragraph a of subdivision 3 as added and subparagraph 3 of paragraph b

A. 5228 5

of subdivision 3 and paragraph d of subdivision 3 as amended by chapter 553 of the laws of 2015, subparagraph 4 of paragraph a of subdivision 3 as added by chapter 343 of the laws of 2016, paragraph c of subdivision 3 as added by chapter 17 of the laws of 1987, subdivision 5 as amended by chapter 538 of the laws of 1976 and subdivisions 6, 7 and 8 as added by chapter 208 of the laws of 1975, are amended to read as follows: