Bill S644-2013

Reduces from one-third to one-fourth of income the applicability of the senior citizens' rent increase exemption

Provides that the tax abatements for certain rent-controlled and rent-regulated property occupied by senior citizens commonly known as the senior citizens' rent increase exemption (SCRIE) shall be applicable where the rent constitutes more than one-fourth rather than one-third of the tenant's income.

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  • Jan 8, 2014: REFERRED TO AGING
  • Jan 9, 2013: REFERRED TO AGING

Memo

BILL NUMBER:S644

TITLE OF BILL: An act to amend the real property tax law, in relation to the income level for the applicability of the senior citizens' rent increase exemption

PURPOSE OR GENERAL IDEA OF BILL: Reduces from one-third to one-fourth of income the applicability of the senior citizen's rent increase exemption.

SUMMARY OF SPECIFIC PROVISIONS: Subdivision 2 and subparagraph 3 of paragraph d of subdivision 3 of section 467-b of the real property tax law, subdivision 2 as amended by chapter 747 of the laws of 1985 and subparagraph 3 of paragraph d of subdivision 3 as amended by section 1 of chapter 188 of the laws of 2005 are amended.. One of the criteria that must be met in order to be eligible for the senior citizen's rent increase exemption (SCRIE) deals with household income. At least one-third of a senior's income must be used for rent in order to be eligible for SCRIE. This criteria would be lowered to include seniors who pay at least one-fourth of their income for rent.

JUSTIFICATION: SCRIE was established in 1979 to allow senior citizens an exemption from rent increases if specific criteria are met They must reside in rent controlled, rent stabilized or Mitchell-Lama housing, be at least 62 years of age, have household incomes of no more than $29,000 (as of July 1, 2009 per NYC DHCR fact sheet) and pay at least one-third of their income for rent. The problem lies in the requirement that one-third of household income be used for rent. Many seniors do not meet that requirement and are subject to high rents and rent increases. This bill will lower the requirement to one-fourth and allow more seniors to become eligible for SCRIE.

PRIOR LEGISLATIVE HISTORY: This legislation was previously introduced.

FISCAL IMPLICATION FOR STATE AND LOCAL GOVERNMENTS: A fiscal note received on May 4, 2009 from the State of New York, Executive Department, Office of Real Property Services states:

The SCRIE program is currently active in New York City, six municipalities in Nassau County, and thirteen municipalities in Westchester County. The estimated fiscal impact of the proposed legislation is based primarily from data obtained from the 2008 New York City Housing and Vacancy Survey, as well as from the city's annual Report of Tax Expenditure. Comparable data are not available from other municipalities.

It is estimated that an additional 7,000 households in New York City could become eligible for SCRIE if the proposed legislation becomes law.

According to the City's Office of Management and Budget, when these benefits are fully phased in over an estimated 20 year period (the life expectancy of the newly eligible senior head of household), SCRIE payments to landlords by the City of New York would increase by approximately $50 million as a result of this program change.

It is not possible to estimate the impact of this program change for the other affected municipalities, but it would have similar effects, in that tenants having comparatively low based rents would qualify for the SCRIE program, with corresponding abatement of taxes by the effected municipalities to the affected landlords.

EFFECTIVE DATE: This act shall take effect immediately; provided that the amendments made to section 467-b of the real property tax law by section one of this act shall not affect the expiration of and shall expire therewith.


Text

STATE OF NEW YORK ________________________________________________________________________ 644 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Aging AN ACT to amend the real property tax law, in relation to the income level for the applicability of the senior citizens' rent increase exemption THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 and subparagraph 3 of paragraph d of subdi- vision 3 of section 467-b of the real property tax law, subdivision 2 as amended by chapter 747 of the laws of 1985 and subparagraph 3 of para- graph d of subdivision 3 as amended by section 1 of chapter 188 of the laws of 2005, are 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 not receive a monthly allow- ance for shelter pursuant to the social services law, an amount not in excess of that portion of any increase in maximum rent or legal regu- lated rent which causes such maximum rent or legal regulated rent to exceed [one-third] ONE-FOURTH 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 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.
(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 or legal regulated rent of the subsequent dwell- ing unit exceeds [one-third] ONE-FOURTH of the combined income of all members of the household. S 2. This act shall take effect immediately; provided that the amend- ments made to section 467-b of the real property tax law by section one of this act shall not affect the expiration of such section and shall expire therewith.

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