LBD14240-01-6
A. 10018 2
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, PREFER-
ENTIAL 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 subdi-
vision 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:
(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 dwell-
ing unit; or
(3) where the head of the household does not receive a monthly allow-
ance 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 certif-
A. 10018 3
icate 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, PREFER-
ENTIAL RENT or legal regulated rent in the original dwelling unit; or
(3) where the head of the household does not receive a monthly allow-
ance 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.
S 2. Paragraph e of subdivision 1, subdivision 2, paragraph c of
subdivision 3, subdivision 4, subdivision 6 and subdivision 8 of section
467-b of the real property tax law, as added by chapter 689 of the laws
of 1972, and 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 ques-
tion 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. PREF-
ERENTIAL RENT FOR PURPOSES OF THIS SECTION SHALL MEAN THE SAME AS PARA-
GRAPH FOURTEEN OF SUBDIVISION C OF SECTION 26-511 OF THE ADMINISTRATIVE
CODE OF THE CITY OF NEW YORK;
2. The governing body of any city, town or village is hereby author-
ized 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 house-
hold, 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 abate-
ment 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 subdi-
vision 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
A. 10018 4
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 house-
hold 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 there-
in 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.
S 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, as added by chapter
208 of the laws of 1975, 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 of subdivision 3 and paragraph d
of subdivision 3 as amended by chapter 553 of the laws of 2015, para-
graph c of subdivision 3 as added by chapter 17 of the laws of 1987 and
subdivision 5 as amended by chapter 538 of the laws of 1976, are amended
to read as follows:
h. "Increase in maximum rent OR PREFERENTIAL RENT" means any increase
in the maximum rent OR PREFERENTIAL RENT for the dwelling unit becoming
effective on or after the eligibility date, including capital assess-
ments and voluntary capital contributions but excluding any increase in
maximum rent OR PREFERENTIAL RENT attributable to gas or electrical
utility charges or an increase in dwelling space, services or equipment,
or an exemption from the maximum rent, PREFERENTIAL RENT or legal regu-
lated rent as specified in paragraph b of subdivision three of this
section, provided, however, that with respect to any dwelling unit in a
dwelling which is or was subject to a mortgage insured or initially
insured by the federal government pursuant to section two hundred thir-
teen of the National Housing Act, as amended, "increase in maximum rent"
shall not include any increase in maximum rent attributable to capital
assessments or voluntary capital contributions.
i. "Maximum rent OR PREFERENTIAL RENT" means the maximum rent OR PREF-
ERENTIAL RENT, excluding gas and electric utility charges, which has
been authorized or approved by the commissioner or the supervising agen-
cy or the legal regulated rent established for the dwelling unit pursu-
ant to the provisions of either Article II, IV, V or XI of the private
A. 10018 5
housing finance law, or the rental established for a cooperatively owned
dwelling unit previously regulated pursuant to the provisions of Article
II, IV, V or XI of the private housing finance law; or such approved
rent for a dwelling unit in a dwelling subject to a mortgage insured or
initially insured by the federal government pursuant to section two
hundred thirteen of the National Housing Act, as amended; or such rent
established for a dwelling unit which was subject to a mortgage insured
or initially insured by the federal government pursuant to section two
hundred thirteen of the National Housing Act, as amended. PREFERENTIAL
RENT FOR PURPOSES OF THIS SECTION SHALL MEAN THE SAME AS PARAGRAPH FOUR-
TEEN OF SUBDIVISION C OF SECTION 26-511 OF THE ADMINISTRATIVE CODE OF
THE CITY OF NEW YORK.
3. Any such local law or ordinance shall provide that: a. an eligible
head of the household may obtain a rent increase exemption order/tax
abatement certificate entitling him to an exemption from increases in
the maximum rent OR PREFERENTIAL RENT otherwise payable in one of the
following amounts:
(1) where the eligible head of the household does not receive a month-
ly allowance for shelter pursuant to the social services law, the amount
by which increases in the maximum rent OR PREFERENTIAL RENT subsequent
to such person's eligibility date have resulted in the maximum rent OR
PREFERENTIAL RENT exceeding one-third of the combined income of all
members of the household for the taxable period, except that in no event
shall a rent increase exemption order/tax abatement certificate become
effective prior to January first, nineteen hundred seventy-six; or
(2) where the eligible head of the household receives a monthly allow-
ance for shelter pursuant to the social services law, an amount not
exceeding that portion of any increase in maximum rent OR PREFERENTIAL
RENT subsequent to such person's eligibility date which is not covered
by the maximum allowance for shelter which such person is entitled to
receive pursuant to the social services law.
(3) provided, however, that in a city of a population of one million
or more, where the eligible head of the household has been granted a
rent increase exemption order as a person with a disability as defined
in paragraph m of subdivision one of this section 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 subparagraph one
of this paragraph shall be an amount not in excess of the difference
between the maximum rent OR PREFERENTIAL RENT and the amount specified
in such order, as adjusted by any other provision of this section.
b. 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 this section, to the local emergency housing rent control law or to
the emergency tenant protection act of nineteen seventy-four to a subse-
quent dwelling unit which is subject to the provisions of articles II,
IV, V or XI of the private housing finance law or which is or was
subject to a mortgage insured or initially insured by the federal
government pursuant to section two hundred thirteen of the National
Housing Act, as amended, and 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, subject to any
terms and conditions imposed by reason of any fund created under subdi-
vision eight of this section, and such certificate may provide that the
head of the household shall be exempt from paying that portion of the
A. 10018 6
maximum rent, PREFERENTIAL RENT or legal regulated rent for the subse-
quent 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, PREFER-
ENTIAL RENT or legal regulated rent in the original dwelling unit; or
(3) where the head of the household does not receive a monthly allow-
ance 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 as a person with a disability as defined in paragraph m
of subdivision one of this section that is in effect as of January
first, two thousand fifteen or takes effect on or before July first, two
thousand fifteen.
c. Notwithstanding any other provision of law, when a dwelling unit
subject to the provisions of article II, IV, V or XI of the private
housing finance law or subject to a mortgage insured or initially
insured by the federal government pursuant to section two hundred thir-
teen of the national housing act, as amended, is later reclassified by
order of the commissioner, the supervising agency or any other govern-
mental agency supervising such dwelling unit, or by operation of law to
a dwelling unit subject to any of the provisions of article II, IV, V or
XI of the private housing finance law, the rent stabilization law of
nineteen hundred sixty-nine of the city of New York or the emergency
tenant protection act of nineteen seventy-four, or when a dwelling unit
subject to such rent stabilization law or such emergency tenant
protection act, or subject to the emergency housing rent control law or
to the rent and rehabilitation law of the city of New York enacted
pursuant to the local emergency housing rent control act, is reclassi-
fied by order of the commissioner or the supervising agency or by opera-
tion of law to a dwelling unit subject to any of the aforementioned
provisions of the private housing finance law or subject to a mortgage
insured or initially insured by the federal government pursuant to
section two hundred thirteen of the national housing act, as amended, a
head of the household who held or holds a valid rent increase exemption
order at the time of the reclassification shall be issued a rent
increase exemption order under applicable law continuing the previous
exemption notwithstanding the reclassification of the dwelling unit.
d. notwithstanding any other provision of law to the contrary, where a
eligible head of the household holds a current, valid rent increase
exemption order/tax abatement certificate and, after the effective date
of this paragraph, there is a permanent decrease in income in an amount
which exceeds twenty percent of such income as represented in such
eligible head of household's last approved application for a rent
increase exemption order/tax abatement certificate or for renewal there-
of, such eligible head of the household may apply for a redetermination
of the amount set forth therein. Upon application, such amount shall be
redetermined so as to re-establish the ratio of adjusted rent to income
which existed at the time of approval of such eligible head of the
household's last application for a rent increase exemption order/tax
abatement certificate or for renewal thereof; provided, however, that in
no event shall the amount of the adjusted rent be redetermined to be (i)
in the case of an eligible head of the household who does not receive a
A. 10018 7
monthly allowance for shelter pursuant to the social services law, less
than one-third of income unless such head of the household has been
granted a rent increase exemption order as a person with a disability as
defined in paragraph m of subdivision one of this section that is in
effect as of January first, two thousand fifteen or takes effect on or
before July first, two thousand fifteen; or (ii) in the case of an
eligible head of the household who receives a monthly allowance for
shelter pursuant to the social services law, less than the maximum
allowance for shelter which such eligible head of the household is enti-
tled to receive pursuant to law. For purposes of this paragraph, a
decrease in income shall not include any decrease in income resulting
from the manner in which income is calculated pursuant to any amendment
to paragraph f of subdivision one of this section made on or after April
first, nineteen hundred eighty-seven. For purposes of this paragraph,
"adjusted rent" shall mean maximum rent OR PREFERENTIAL RENT less the
amount set forth in a rent increase exemption order/tax abatement
certificate.
5. Any such local law or ordinance may provide that the effective date
of a rent increase exemption order/tax abatement certificate shall be
the date of the first increase in maximum rent OR PREFERENTIAL RENT
becoming effective after the applicant's eligibility date except that in
no event shall a rent increase exemption order/tax abatement certificate
become effective prior to January first, nineteen hundred seventy-six.
6. Any such local law or ordinance may provide that upon receipt of a
copy of the rent increase exemption order/tax abatement certificate, the
housing company managing the dwelling unit of the eligible head of the
household shall promptly accord to the eligible head of the household
covered by such order/certificate the appropriate credit against the
monthly maximum rent OR PREFERENTIAL RENT then or thereafter payable. To
the extent the full amount of such credit has not been accorded for any
past period since the effective date specified in the order/certificate,
the housing company shall credit the total aggregate amount not so cred-
ited to the monthly maximum rent OR PREFERENTIAL RENT next payable or to
such subsequent monthly maximum rents as the supervising agency may
authorize. It shall be illegal to collect any amount for which a rent
increase exemption order/tax abatement certificate provides credit or to
withhold credit for any such amounts already collected, and collection
or retention of any such amount for a dwelling unit occupied by such
eligible head of the household shall be deemed a rent overcharge, and
upon conviction therefor the housing company and its directors and any
employee and any agent responsible therefor shall be guilty of a misde-
meanor, punishable by a fine not to exceed one thousand dollars or
imprisonment not to exceed six months, or both.
7. Any such local law or ordinance may provide that in order to obtain
the tax benefits to which it is entitled under this section, a housing
company must file with the collecting officer charged with the duty of
collecting taxes of the municipality a sworn application, in such form
as such officer may prescribe, for any quarterly period in which the
housing company has accorded an eligible head of the household an
exemption hereunder from the payment of the maximum rent OR PREFERENTIAL
RENT. Subject to prior or subsequent verification thereof, the collect-
ing officer shall credit the total amount of such exemptions actually
accorded to occupants of dwelling units contained in the property
against the real property taxes otherwise payable with respect to the
property. The housing company shall attach to such application copies of
all rent increase exemption orders/tax abatement certificates issued to
A. 10018 8
eligible heads of the household residing in dwelling units in such real
property.
8. Any such local law or ordinance may provide that in the event that
the real property of a housing company containing one or more dwelling
units shall be totally exempt from local and municipal real property
taxes for any fiscal year as a result of the exemptions from maximum
rent OR PREFERENTIAL RENT credited pursuant to this section, or other-
wise, such municipality may make or contract to make payments to a hous-
ing company in an amount not exceeding the amount necessary to reimburse
the housing company for the total dollar amount of all exemptions from
the payment of the maximum rent OR PREFERENTIAL RENT accorded pursuant
to this section to eligible heads of the household residing in dwelling
units in such real property.
A municipality may create and establish a fund in order to provide for
the payments made in accordance with contracts entered into pursuant to
this subdivision. There may be paid into such fund (1) all of the rental
surcharges collected by the municipality from housing companies organ-
ized and existing pursuant to Articles II, IV, V and XI of the private
housing finance law and (2) any moneys appropriated or otherwise made
available by the municipality for the purpose of such fund.
S 4. This act shall take effect immediately; provided that the amend-
ments to section 467-b of the real property tax law made by section one
of this act shall be subject to the expiration and reversion of such
section pursuant to section 17 of chapter 576 of the laws of 1974, as
amended, when upon such date the provisions of section two of this act
shall take effect.