BILL NUMBER: S5548
SPONSOR: CLEARE
 
TITLE OF BILL:
An act to amend the real property tax law and the administrative code of
the city of New York, in relation to redetermination based on income for
a tax abatement for rent-controlled and rent regulated property occupied
by senior citizens or persons with disabilities
 
PURPOSE:
To ensure when a person enrolled in the Senior Citizen Rent Increase
Exemption (SCRIE) or Disability Rent Increase Exemption (DRIE) program
experiences a decrease in their household income that the adjusted rent
is also decreased to a maximum of a third of household income.
 
SUMMARY OF PROVISIONS:
Section one of the bill amends paragraph g of subdivision 3 of 5 467-b
of the real property tax law to remove the stipulation which requires
there be more than a twenty percent permanent decrease in the combined
income of all members of a household before applying for a redetermi-
nation of the adjusted rent to income in the SCRIE or DRIE program.
Section two of the bill renumbers subparagraph 2 of paragraph a of
subdivision 4 of § 467-b of the real property tax law to subparagraph 3
and adds a new subparagraph 2 to require that where .a head of household
whom a rent increase exemption order/tax abatement certificate has
previously been issued submits a renewal application where there is a
decrease in the combined income of all members of the household, the
head of the household shall be issued a order/certificate in an amount
not in excess of that portion of any increase in maximum rent or legal
regulated rent which causes such maximum rent or local regulated rent to
exceed one-third of the combined income of all members of the household.
Section three of the bill amends subdivision (d) or § 26-605 of the
administrative code of the city of New York to remove the stipulation
which requires there be more than a twenty percent permanent decrease in
the combined income of all members of a household before applying for a
redetermination of the adjusted rent to income in the Senior Citizen
Rent Increase Exemption or Disability Rent Increase Exemption program.
Section four of the bill adds subdivision (d-1) to § 26-605 of the
administrative code of the city of New York to require that where a head
of household whom a rent increase exemption order/tax abatement certif-
icate has previously been issued submits a renewal application where
there is a decrease in the combined income of all members of the house-
hold, the head of the household shall be issued a order/certificate in
an amount not in excess of that portion of any increase in maximum rent
or legal regulated rent which causes such maximum rent or local regu-
lated rent to exceed one-third of the combined income of all members of
the household.
Section five of the bill provides the effective date.
 
JUSTIFICATION:
The SCRIE and DRIE programs help senior citizens and people with disa-
bilities remain in'their homes by ensuring that the head of a household
who is either at least sixty-two years of age or a person with a disa-
bility, where the combined household income for all members of the
household is $50,000 or less, spend no more than one-third of their
monthly household income on rent or maintenance.
Currently, for benefits starting later than July 15, 2015, with each
renewal lease, the rent amount is calculated to one-third of the house-
hold's monthly income. If that amount is greater than the existing
frozen rent, the frozen rent is increased to match the higher amount.
However, increases in frozen rent are not readjusted for future
decreases in income. Therefore, if the household income of an individual
enrolled in either program experiences a temporary increase, for example
if a tenant receives a payout from an investment vehicle, their frozen
rent is increased, but should the household income subsequently then
return to the previous amount, the adjusted rent would remain the same
and the tenant might be required to pay a higher frozen rent indefinite-
ly. The goal of the program is to provide stable, affordable housing for
seniors and people with disabilities with a household income of $50,000
or less. Requiring adjusted rents to proportionally decrease when a
household experiences a decrease in income will help effectuate that
goal.
 
PRIOR LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S5548: 467-b real property tax law, 467-b(3) real property tax law