NY State Senate Bill 2023-S8994

Senate Bill S8994

2023-2024 Legislative Session

Grants real property tax abatement to rent-controlled or rent regulated properties when the maximum authorized rent exceeds 1/2 of the tenants' household income

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Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 07, 2024	reported and committed to finance
Apr 08, 2024	referred to cities 1

Votes

- May 7, 2024 - Cities 1 Committee Vote
  S8994
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Cities 1 Committee Vote: May 7, 2024
      
      aye (5)
      
      Cleare
      
      Comrie
      
      Jackson
      
      Persaud
      
      Sepúlveda
      
      aye wr (2)
      
      Lanza
      
      Rhoads

co-Sponsors

2023-S8994 (ACTIVE) - Details

See Assembly Version of this Bill:: A2389
Current Committee:: Senate Finance
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§467-b & 467-c, RPT L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A7938
2017-2018: A6669, A8979
2019-2020: A7308
2021-2022: A3292

2023-S8994 (ACTIVE) - Summary

Authorizes application of the property tax abatement for rent-controlled or rent regulated properties occupied by senior citizens or disabled persons, to those units occupied by tenants paying the maximum allowable rent when such rent exceeds 1/2 of the household income; provides for state payments to cities affected thereby equal to 10% of lost real property tax revenue.

2023-S8994 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8994

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:

Section one amends the title of section 467-b of the real property tax

law to include persons paying a maximum rent or legal regulated rent
which exceeds one-half of the combined income of all members of their
household.

Section two amends real property tax law section 467-b 3 (a) to expand
the definition of "head of the household" to include those who pay a
maximum rent which exceeds one-half of the combined income of all
members of their household.

Section 3 through Section 8 provides that a person who lives in rent
controlled or rent stabilized housing who is the head of a head of
household who is not otherwise receiving a senior citizen rent increase
exemption or a disability based rent increase exemption under section
467-b, or a monthly shelter allowance pursuant to the social services
law; and who pays more than 50% of his or her income for rent, shall be
eligible for a tenant rent increase exemption.

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 the disabled residing in rent controlled, rent
stabilized and certain otherwise 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 disabilities 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 program would operate under
the same general administrative parameters as the existing SCRIE and
DRIE programs, with the state providing 10% of the cost of the revenue
loss of the tax abatement to New York City. TRIE would target housing
assistance to the most assist those low income individuals and heads of
households that shoulder a disproportionate rent burden
 and pay over 50% of their income in rent. This program provides relief
to those who, after paying their housing costs, have the least amount of
income left to acquire the necessities of daily living.

 
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
dollars for the first year of implementation.

 
EFFECTIVE DATE:
This act shall take effect July 1, 2023 and shall expire at the same
time provisions of the SCRIE and DRIE programs expire pursuant to chap-
ter 55 of the laws of 2014.

2023-S8994 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8994
 
                             I N  S E N A T E
 
                               April 8, 2024
                                ___________
 
 Introduced by Sen. FERNANDEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 1
 
 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

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The section heading of section 467-b of the real property
 tax law, as amended by chapter 188 of the laws of 2005,  is  amended  to
 read as follows:
   Tax abatement for rent-controlled and rent regulated property occupied
 by  senior  citizens  or  persons  with disabilities OR PERSONS PAYING A
 MAXIMUM RENT OR LEGAL REGULATED  RENT  WHICH  EXCEEDS  ONE-HALF  OF  THE
 COMBINED INCOME OF ALL MEMBERS OF THEIR HOUSEHOLD.
   § 2. Paragraph b of subdivision 1 of section 467-b of the real proper-
 ty tax law, as amended by chapter 188 of the laws of 2005, is amended to
 read as follows:
   b.  "Head  of the household" means a person (i) who is sixty-two years
 of age or older, [or] (ii) who qualifies as a person with  a  disability
 pursuant  to subdivision five of this section, OR (III) WHO PAYS A MAXI-
 MUM RENT OR LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE  COMBINED
 INCOME  OF  ALL  MEMBERS  OF  THEIR  HOUSEHOLD,  and  is entitled to the
 possession or to the use or occupancy of a dwelling unit;
   § 3. Subdivision 2 of section 467-b of the real property tax  law,  as
 amended  by  chapter  747 of the laws of 1985, paragraph (c) as added by
 chapter 553 of the laws of 2015 and paragraph (d) as  added  by  chapter
 343 of the laws of 2016, is amended to read as follows:
   2.  The  governing body of any municipal corporation 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
 one  of the following amounts:  (a) where the head of the household does
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03204-01-3
 S. 8994                             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  or legal regulated rent which causes such maximum 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 QUALIFIES AS  A  PERSON  PAYING  A
 MAXIMUM  RENT  OR  LEGAL  REGULATED  RENT  WHICH EXCEEDS ONE-HALF OF THE
 COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD AND DOES 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  OR
 LEGAL  REGULATED  RENT WHICH CAUSES SUCH MAXIMUM RENT OR LEGAL REGULATED
 RENT TO EXCEED ONE-HALF OF THE COMBINED INCOME OF  ALL  MEMBERS  OF  THE
 HOUSEHOLD; OR
   (C)  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 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 or legal
 regulated  rent  and  the amount specified in such order, as adjusted by
 any other provision of this section.
   (d)(1) Provided, however, that in a city  with  a  population  of  one
 million  or  more,  a  head  of  the  household  who has received a rent
 increase exemption order that has expired and who, upon renewal applica-
 tion for the period commencing immediately  after  such  expiration,  is
 determined  to be ineligible for a rent increase exemption order because
 the combined income of all members of the household exceeds the  maximum
 amount  allowed  by  this section or the maximum rent or legal regulated
 rent does not exceed one-third of the combined income of all members  of
 the  household, may submit a new application during the following calen-
 dar year, and if such head of the household  receives  a  rent  increase
 exemption order that commences during such calendar year, the tax abate-
 ment  amount  for  such  order shall be calculated as if such prior rent
 increase exemption order had not  expired.  However,  no  tax  abatement
 benefits may be provided for the period of ineligibility.
   (2) No head of the household may receive more than three rent increase
 exemption  orders calculated as if a prior rent increase exemption order
 had not expired, as described in subparagraph one of this paragraph.
   § 4. Paragraph a of subdivision 3 of section 467-b of the real proper-
 ty tax law, as amended by section 1 of part U of chapter 55 of the  laws
 of 2014, is amended to read as follows:
   a.  for  a  dwelling  unit where the head of the household is a person
 sixty-two years of age or older OR WHERE THE HEAD OF THE HOUSEHOLD  PAYS
 A  MAXIMUM  RENT  OR  LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE
 COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD, no tax abatement  shall
 be  granted  if  the combined income of all members of the household for
 the income tax year immediately preceding the date of making application
 exceeds four thousand dollars, or such other sum not more  than  twenty-
 five  thousand  dollars beginning July first, two thousand five, twenty-
 six thousand dollars beginning July first, two thousand six, twenty-sev-
 en  thousand  dollars  beginning  July  first,   two   thousand   seven,
 S. 8994                             3
 
 twenty-eight  thousand dollars beginning July first, two thousand eight,
 twenty-nine thousand dollars beginning July first,  two  thousand  nine,
 and  fifty thousand dollars beginning July first, two thousand fourteen,
 as  may  be  provided  by the local law, ordinance or resolution adopted
 pursuant to this section, provided that when the head of  the  household
 retires  before the commencement of such income tax year and the date of
 filing the application, the income for such  year  may  be  adjusted  by
 excluding salary or earnings and projecting his or her retirement income
 over the entire period of such year.
   § 5. Paragraph a of subdivision 3 of section 467-b of the real proper-
 ty  tax law, as separately amended by chapter 188 and chapter 205 of the
 laws of 2005, is amended to read as follows:
   a. for a dwelling unit where the head of the  household  is  a  person
 sixty-two  years of age or older OR WHERE THE HEAD OF THE HOUSEHOLD PAYS
 A MAXIMUM RENT OR LEGAL REGULATED RENT WHICH  EXCEEDS  ONE-HALF  OF  THE
 COMBINED  INCOME OF ALL MEMBERS OF THE HOUSEHOLD, no tax abatement shall
 be granted if the combined income of all members of  the  household  for
 the income tax year immediately preceding the date of making application
 exceeds  four  thousand dollars, or such other sum not more than twenty-
 five thousand dollars beginning July first, two thousand  five,  twenty-
 six thousand dollars beginning July first, two thousand six, twenty-sev-
 en   thousand   dollars   beginning  July  first,  two  thousand  seven,
 twenty-eight thousand dollars beginning July first, two thousand  eight,
 and  twenty-nine  thousand  dollars  beginning  July first, two thousand
 nine, as may be provided by  the  local  law,  ordinance  or  resolution
 adopted  pursuant  to  this  section, provided that when the head of the
 household retires before the commencement of such income  tax  year  and
 the  date  of  filing  the  application, the income for such year may be
 adjusted by excluding salary or  earnings  and  projecting  his  or  her
 retirement income over the entire period of such year.
   § 6. Paragraph d of subdivision 1 of section 467-c of the real proper-
 ty tax law, as separately amended by chapters 188 and 205 of the laws of
 2005, and subparagraph 1 as amended by section 2 of part U of chapter 55
 of the laws of 2014, is amended to read as follows:
   d.  "Eligible  head of the household" means (1) a person or his or her
 spouse who is sixty-two years of age or older, OR A PERSON  WHO  PAYS  A
 MAXIMUM  RENT  WHICH  EXCEEDS  ONE-HALF  OF  THE  COMBINED INCOME OF ALL
 MEMBERS OF THE HOUSEHOLD, and is entitled to the possession  or  to  the
 use and occupancy of a dwelling unit, provided, however, with respect to
 a  dwelling 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 "eligible head of the household"
 shall be limited to that person or his or her spouse who was entitled to
 possession or the use and occupancy of such dwelling unit at the time of
 termination of such mortgage, and whose income when  combined  with  the
 income  of all other members of the household, does not exceed six thou-
 sand five hundred dollars for the taxable period, or such other sum  not
 less  than sixty-five hundred dollars nor more than twenty-five thousand
 dollars beginning July first, two  thousand  five,  twenty-six  thousand
 dollars  beginning  July  first, two thousand six, twenty-seven thousand
 dollars beginning July first, two thousand seven, twenty-eight  thousand
 dollars  beginning  July first, two thousand eight, twenty-nine thousand
 dollars beginning July first, two  thousand  nine,  and  fifty  thousand
 dollars  beginning July first, two thousand fourteen, as may be provided
 by local law; or (2) a person with  a  disability  as  defined  in  this
 subdivision.
 S. 8994                             4
 
   §  7.  Subparagraph 1 of paragraph d of subdivision 1 of section 467-c
 of the real property tax law, as separately amended by chapters 188  and
 205 of the laws of 2005, is amended to read as follows:
   (1)  a  person  or  his or her spouse who is sixty-two years of age or
 older, OR A PERSON WHO PAYS A MAXIMUM RENT WHICH EXCEEDS ONE-HALF OF THE
 COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD, and is entitled to  the
 possession  or  to  the  use and occupancy of a dwelling unit, provided,
 however, with respect to a dwelling 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
 "eligible  head of the household" shall be limited to that person or his
 or her spouse who was entitled to possession or the use and occupancy of
 such dwelling unit at the time of  termination  of  such  mortgage,  and
 whose  income  when combined with the income of all other members of the
 household, does not exceed six thousand five  hundred  dollars  for  the
 taxable  period,  or  such  other  sum  not less than sixty-five hundred
 dollars nor more than twenty-five thousand dollars beginning July first,
 two thousand five, twenty-six thousand dollars beginning July first, two
 thousand six, twenty-seven thousand dollars beginning  July  first,  two
 thousand  seven, twenty-eight thousand dollars beginning July first, two
 thousand eight, and twenty-nine thousand dollars beginning  July  first,
 two thousand nine, as may be provided by local law; or
   §  8.  Subparagraph 1 of paragraph a of subdivision 3 of section 467-c
 of the real property tax law, as amended by chapter 747 of the  laws  of
 1985, is amended to read as follows:
   (1)  where  the eligible head of the household WHO IS EITHER SIXTY-TWO
 YEARS OF AGE OR OLDER OR IS DISABLED does not receive a  monthly  allow-
 ance  for  shelter  pursuant  to  the social services law, the amount by
 which increases in the maximum rent subsequent to such  person's  eligi-
 bility date have resulted in the maximum rent exceeding one-third of the
 combined income of all members of the household for the taxable period,
 OR WHERE THE ELIGIBLE HEAD OF THE HOUSEHOLD IS A PERSON WHO PAYS A MAXI-
 MUM RENT WHICH EXCEEDS ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF
 THE  HOUSEHOLD DOES NOT RECEIVE A MONTHLY ALLOWANCE FOR SHELTER PURSUANT
 TO THE SOCIAL SERVICES LAW, THE AMOUNT BY WHICH INCREASES IN THE MAXIMUM
 RENT SUBSEQUENT TO SUCH PERSON'S DATE HAVE RESULTED IN THE MAXIMUM  RENT
 EXCEEDING  ONE-HALF  OF THE COMBINED INCOME OF ALL MEMBERS OF THE HOUSE-
 HOLD 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
   § 9. The state comptroller shall annually pay to each  city  providing
 real property tax abatements pursuant to sections 467-b and 467-c of the
 real property tax law an amount equal to 10 per centum of the real prop-
 erty tax revenue lost during the city fiscal year due to the implementa-
 tion  of  the  provisions  of  this  act.  Each  city eligible for state
 payments pursuant to this section shall provide  the  state  comptroller
 with such information as he or she shall deem necessary.
   § 10. This act shall take effect July 1, 2024; provided however, that:
   a.  the amendments to paragraph a of subdivision 3 of section 467-b of
 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
 S. 8994                             5
 
 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.

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Senate Bill S8994

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Sponsored By

Nathalia Fernandez

Current Bill Status - In Senate Committee Finance Committee

co-Sponsors

Robert Jackson

Shelley B. Mayer

Jessica Ramos

Luis R. Sepúlveda

2023-S8994 (ACTIVE) - Details

2023-S8994 (ACTIVE) - Summary

2023-S8994 (ACTIVE) - Sponsor Memo

2023-S8994 (ACTIVE) - Bill Text download pdf

Comments