BILL NUMBER: S1805
SPONSOR: FERNANDEZ
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to tax abatements
for dwelling units occupied by certain persons residing in rent-cont-
rolled or rent regulated properties; and providing state aid to cities
affected by such tax abatements
 
PURPOSE OR GENERAL IDEA OF BILL:
To authorize the City of New York to institute a tenant rent increase
exemption program (TRIE), for tenants who pay over 50% of their income
in rent and who reside within rent controlled, rent regulated, and with-
in certain other types of housing incorporated under the private housing
finance law. This bill aims to support and work in conjunction with
current and future rent regulations enacted by the state legislature.
 
SUMMARY OF PROVISIONS:
Sections 1-8 amends the relevant sections of real property tax law to
include low-income tenants to the exemption program.
Section 9 requires the State Comptroller annually to pay each city
providing real property tax abatements equal to 10% of the revenue lost
each year due to the implementation of this act.
Section 10 sets the effective date.
 
JUSTIFICATION:
This bill expands upon the very successful New York City senior citizen
rent increase exemption (SCRIE) and the disability rent increase
exemption (DRIE). This program is otherwise known as the NYC Rent Freeze
Program, and is administered by the NYC Department of Finance pursuant
to state enabling legislation. The existing SCRIE and DRIE programs
provide that seniors and disabled individuals residing in rent
controlled, rent stabilized, and certain other limited profit housing
pay no more than 30% of their income for rent. This program helps
eligible seniors (age 62 and over) and tenants with qualifying disabili-
ties stay in affordable housing by freezing their rent. The program
protects eligible tenants from future rent increases while providing
property owners with tax abatements equal to the dollar value of the
rent increases they are entitled to.
The tenant increase exemption (TRIE) program would operate under the
same general administrative parameters as the existing SCRIE and DRIE
programs,
4. with the state providing 10% of the cost of the revenue loss of the
tax abatement to New York City. TRIE would provide housing assistance to
low-income individuals and heads of households who pay over 50% of their
income in rent. This program provides relief to those individuals who
need support without harming homeowners and landlords.
 
FISCAL IMPLICATIONS:
The state shall reimburse NYC for 10% of the amount of tax revenue
abated. It is estimated that the program would cost NYC $34 million for
the first year of implementation.
 
LEGISLATIVE HISTORY:
2023-2024: S8994 / A2389
 
EFFECTIVE DATE:
This act shall take effect July 1, 2026; provided however, that:
a. the amendments to paragraph a of subdivision 3 of section 467-b of 22
the real property tax law, made by section four of this act shall be
subject to 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, when upon such date section five of this act
shall take effect; and
b. the amendments to subparagraph (1) of paragraph d of subdivision 1 of
section 467-c of the real property tax law, made by section six 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 expire and be deemed repealed therewith, when upon such date
section seven of this act shall take effect.

Statutes affected:
S1805: 467-b real property tax law, 467-c real property tax law, 467-c(1) real property tax law, 467-c(3) real property tax law