BILL NUMBER: S1457A
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 $67,000 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
$67,000 beginning July 1, 2024. 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 2024 maximum income threshold,
and annual CPI increases for the Disability Rent Increase Exemption
(DRIE).
Section 2 amends paragraph d of subdivision 1 of section 467-c of the
real property tax law to set the same 2024 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 2024 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 2024 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 2024 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 or people with disabili-
ties 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.
Using the U.S. Inflation Calculator for the New York-Newark-Jersey City
metropolitan area-the Consumer Price Index for All Urban Consumers
(CPI-U) used for all areas in New York currently offer SCRIE, DRIE,
SCHE, and DHE-$50,000 in 2014 dollars would equal $66,539 in 2024. In
previous state budgets and with the passage of S7640/A9744 in 2014
(Chapter 129 of the laws of 2014) and S3085A/A3956A in 2022 (Chapter 488
of 2022), the maximum income threshold was increased; however, they did
not index these increases to the CPI-U. In addition, in the 2024 enacted
state budget, social security benefits received another Cost of Living
adjustment (COLA)by 3.2%. Without corresponding adjustments to income
limits for SCRIE/DRIE/SCHE/DHE, some recipients are worried that they
may soon become over-income for these programs.
Recognizing the rising cost of living for New Yorkers and the continued
need for SCRM/DRIE/SCHE/DHE programs for seniors and people with disa-
bilities, this bill seeks to account for inflation in the last 10 years
by increasing the maximum income threshold to $67,000 and indexing the
threshold to 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 that may adopt SCRIE/DRIE in the future,
they would index the increases according to the CPI-Northeast Region
consumer price index.
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
$67,000 to become permanent and any subsequent increases that may be
enacted in the future.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
To be determined. Program funding would be subject to amounts appropri-
ated or otherwise available.
 
EFFECTIVE DATE:
This act shall take effect immediately, provided that:
(a) the amendments to paragraph a of subdivision 3 of section 467-b of
the real property tax law made by section one of this act shall not
affect the expiration of such paragraph pursuant to section 4 of part U
of chapter 55 of the laws of 2014, as amended, and shall be deemed to
expire therewith;
(b) the amendments to paragraph b of subdivision 3 of section 467-b of
the real property tax law made by section one of this act shall not
affect the expiration of such paragraph pursuant to section 4 of chapter
129 of the laws of 2014, as amended, and shall be deemed to expire ther-
ewith;
(c) the amendments to subparagraph 1 of paragraph d of subdivision 1 of
section 467-c of the real property tax law, made by section two of this
act, shall not affect the expiration of such subparagraph pursuant to
section 4 of part U of chapter 55 of the laws of 2014, as amended, and
shall be, deemed expired therewith; and
(d) the amendments to paragraph m of subdivision 1 of section 467-c of
the real property tax law, made by section two of this act, shall not
affect the expiration of such paragraph pursuant to section 4 of chapter
129 of the laws of 2014, as amended, and shall be deemed expired there-
with.

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