BILL NUMBER: S1457B
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to increasing the
combined household income limit for eligibility for a senior citizen
rent increase exemption (SCRIE), disability rent increase exemption
(DRIE), senior citizen homeowners' exemption (SCHE), and disabled home-
owners' exemption (DHE) on the basis of the consumer price index; to
amend part U of chapter 55 of the laws of 2014, amending the real prop-
erty tax law relating to the tax abatement and exemption for rent regu-
lated and rent controlled property occupied by senior citizens, in
relation to the effectiveness thereof; and to amend chapter 129 of the
laws of 2014, amending the real property tax law relating to the tax
abatement and exemption for rent regulated and rent controlled property
occupied by persons with disabilities, in relation to the effectiveness
thereof
 
PURPOSE:
This bill sets the maximum income threshold for SCRIE, DRIE, SCHE, and
DHE at $75,000 and would require it to be increased according to consum-
er price index adjustments going forward. It also eliminates the expira-
tion language on setting the maximum income threshold for those
programs.
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill amends sections 467-b, 467-c, 467, and 459-c of the Real Prop-
erty Tax Law with the same language.
Section 1 amends paragraph a of subdivision 3 of section 467-b of the
real property tax law to set the maximum income threshold to be eligible
for the Senior Citizens Rent Increase Exemption (SCRIE) benefit at
$75,000 beginning July 1, 2026. The maximum income threshold shall also
be increased annually by order of the NYS Homes and Community Renewal
Commissioner to reflect any increases in the consumer price index estab-
lished for the most recent preceding calendar year. The New York-Ne-
wark-Jersey City, NY-NJ-PA consumer price index (CPI-U) shall be used
for New York City and for any municipality that has adopted SCRIE in the
counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and
Westchester. The Northeast Region consumer price index shall be used for
any other municipality that adopts SCRIE.
Section 1 also amends paragraph b of subdivision 3 of section 467-b of
the real property tax law to set the same 2026 maximum income threshold,
and annual CPI increases for the Disability Rent Increase Exemption
(DRIB).
Section 2 amends paragraph d of subdivision 1 of section 467-c of the
real property tax law to set the same 2026 maximum income threshold, and
annual CPI increases for SCRIE for residents of Battery Park City. ,
Section 2 amends paragraph m of subdivision 1 of section 467-c of the
real property tax law to set the same 2026 maximum income threshold, and
annual CPI increases for DRIE for residents of Battery Park City.
Section 3 amends subparagraph (i) of paragraph (a) of subdivision 3 of
section 467 of the real property tax law to set the same 2026 maximum
income threshold and annual CPI increases for the Senior Citizen Home-
owners' Exemption (SCHE).
Section 4 amends subparagraph (i) of paragraph (a) of subdivision 5 of
section 459-c of the real property tax law to set the same 2026 maximum
income threshold and annual CPI increases for the Disabled Homeowners'
Exemption (DHE).
Section 5 amends Section 4 of Part U of Chapter 55 of the laws of 2014,
amending the Real Property Tax Law to remove language that would set an
expiration on the setting of the maximum income threshold for the Senior
Citizens Rent Increase Exemption program.
Section 6 amends Section 4 of Chapter 129 of the laws of 2014, amending
the Real Property Tax Law to remove language that would set an expira-
tion on the setting of the maximum income threshold for the Disability
Rent Increase Exemption program.
Section 7 sets forth the effective date.
 
JUSTIFICATION:
The SCRIE (Senior Citizens Rent Increase Exemption) and DRIE (Disabled
Rent Increase Exemption) programs serve seniors and people with disabil-
ities whose household income is no more than $50,000 a year, live in
rent-regulated apartments, and pay more than one-third of their income
in rent, by freezing tenants' rent at the rent they paid when they
entered the program. While these programs have helped keep thousands of
seniors and people with disabilities in their homes, many tenants in
SCRIE and DRIE are still severely rent-burdened and struggle to get by
in the face of decades of rent and price increases without a correspond-
ing increase in retirement and social security benefits. According to a
2016 study by LiveOn New York, 60% of seniors who are enrolled in the
SCRIE program pay over 50% of their income in rent, which leads to many
having to skip meals to pay their rent and stay in their homes.
Recognizing the rising cost of living for New Yorkers and the continued
need for SCRIE/DRIE/SCHE/DHE programs for seniors and people with disa-
bilities, this bill increases the maximum income threshold to $75,000
and indexes the threshold thereafter to annual consumer price index
increases for the New York-Newark-Jersey City metropolitan area - the
Consumer Price Index for All Urban Consumers (CPI-U). The CPI-U indexing
will affect New York City and localities within Dutchess, Nassau,
Orange, Putnam, Rockland, Suffolk, and Westchester counties that have
adopted SCRIE/DRIE/SCHE/DHE. For localities outside of this area, they
would index the increases according to the CPI-Northeast Region consumer
price index. As with all changes to SCRIE/DRIE/SCHE/DHE enacted over the
years, localities that wish to adopt this legislation's changes would
have to do so via passing local laws, resolutions, or ordinances.
SCRIE/DRIE maximum income thresholds are also subject to an expiration
date and must be extended periodically by amending the affected statute.
The bill would eliminate this expiration date for setting the maximum
income threshold for both SCRIE and DRIE, allowing the increase to
$75,000 to become permanent and any subsequent increases that may be
enacted in the future.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S1457: 467 real property tax law, 467(3) real property tax law, 459-c real property tax law, 459-c(5) real property tax law
S1457A: 467 real property tax law, 467(3) real property tax law, 459-c real property tax law, 459-c(5) real property tax law
S1457B: 467 real property tax law, 467(3) real property tax law, 459-c real property tax law, 459-c(5) real property tax law