This bill has been amended

Bill S6811-2009

Relates to tax abatement for rent regulated property occupied by certain senior citizens or low-income and moderate-income persons

Relates to tax abatement for rent regulated property occupied by certain senior citizens or low-income and moderate-income persons.

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  • Feb 18, 2010: COMMITTEE DISCHARGED AND COMMITTED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • Feb 9, 2010: REFERRED TO AGING

Memo

BILL NUMBER:S6811

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 tax abatement for rent regulated property occupied by certain senior citizens or low-income and moderate-income persons

SUMMARY OF PROVISIONS: Section 1. Amends the section heading of section 467-b of the real property tax law (RPTL) to provide for a tax abatement for rent-controlled and rent regulated properties occupied by senior citizens, persons with disabilities or persons of low and moderate income.

Section 2. Amends paragraph b of subdivision 1 of section 467-b of the RPTL to add a person of low or moderate income to those heads of households entitled to the possession of or to the use or occupancy of dwelling units eligible for tax abatements granted under section 1 of this chapter.

Section 3. Amends paragraph a of subdivision 3 of section 467-b of the RPTL to provide that tax abatements shall be granted to dwelling units where the head of household who, on or after July 1, 2011, qualifies as a person of low or moderate income where the combined income of all members of the household does not exceed $45,000 for the previous income tax year.

Section 4. Amends the opening paragraph of subdivision m of section 26-405 of the administrative code of the city of New York to make all persons of limited means eligible for special rent adjustments.

Section 5. Amends subparagraphs (i) and (ii) of paragraph 2 of subdivision m of section 26-405 of the administrative code of the city of New York to: (i) exclude social security income benefits, supplemental security income or disability pensions or disability compensation benefits in determining eligibility for this tax abatement program. (ii) provide that tax abatement benefits under this program shall be provided to households whose aggregate disposable income does not exceed $45,000 beginning on July 1, 2011.

Section 6. Amends paragraph 5 of subdivision m of section 26-405 of the administrative code of the city of New York to provide that a rent exemption order shall be issued to each tenant determined to be eligible by the NYC Department of Finance whose household income does not exceed $45,000.

Section 7. Amends subdivision d of section 26-406 of the administrative code of the city of New York to determine prior to the commencement of each fiscal year the total amount of taxes to be abated as a result of rent exemptions granted to eligible households.

Section 8. Amends the section heading of section 26-509 of the administrative code of the city of New York to provide that

applications for rent increase exemptions and equivalent tax abatement for rent regulated properties shall be made by qualifying low and moderate income persons.

Section 9. Amends the opening paragraph of subdivision b of section 26-509 of the administrative code of the city of New York to provide for rent increase exemptions for low and moderate income persons as well as for eligible senior citizens and persons with disabilities.

Section 10. Amends subparagraphs (i) and (ii) of paragraph 2 of subdivision b of section 26-509 of the administrative code of the city of New York to: (i) exclude social security income benefits, supplemental security income or disability pensions or disability compensation benefits in determining eligibility for this tax abatement program. (ii) provide that tax abatement benefits under this program shall be provided to households whose aggregate disposable income does not exceed $45,000 beginning on July 1, 2011

Section 11. Amends subparagraph (ii) of paragraph 3 of subdivision b of section 26-509 of the administrative code of the city of New York to provide that rent increase exemption orders granted to persons of low-income or moderate-income expire upon termination of occupancy.

Section 12. Amends the opening paragraph of section 26-504.1 of the administrative code of the city of New York to provide that housing accommodations which were subject to rent regulation prior to the receipt of tax benefits pursuant to section 489 of the RPTL shall be eligible for rent deregulation where such tax benefits which were received have been repaid to the City of New York and where such tax benefits to be received have been waived by the recipient.

Section 13. Amends subdivision (a) of section 26-504.2 of the administrative code of the city of New York to provide that housing accommodations which were subject to rent regulation prior to the receipt of tax benefits pursuant to section 489 of the RPTL shall be eligible for rent deregulation where such tax benefits which were received have been repaid to the City of New York and where such tax benefits to be received have been waived by the recipient.

Section 14. Amends section 489 of the Real Property Tax Law to provide that tax benefits received pursuant to section 489 may be repaid, and tax benefits to be received pursuant to such section may be waived, where housing accommodations were subject to rent regulation immediately prior to the receipt of such benefits, thereby enabling such housing accommodations to be eligible for rent deregulation, and that repaid tax benefits are to be paid exclusively into the rent cap fund in the city treasury and allocated and expended solely for the purposes of providing tax abatements for persons of low and moderate income, and any excess monies accumulated as a result of repaid tax benefits will be used to provide housing assistance to persons considered to be homeless and in need of housing accommodations.

Section 15. Amends section 11-243 of the administrative code of the city of New York to provide that tax benefits received pursuant to such section may be repaid, and tax benefits to be received pursuant to such section may be waived, where housing accommodations were

subject to rent regulation immediately prior to the receipt of such benefits, thereby enabling such housing accommodations to be eligible for rent deregulation, and that repaid tax benefits are to be paid exclusively into the rent cap fund in the city treasury and allocated and expended solely for the purposes of providing tax abatements for persons of low and moderate income, and any excess monies accumulated as a result of repaid tax benefits will be used to provide housing assistance to persons considered to be homeless and in need of housing accommodations.

Section 16. Provides for the effective and expiration dates of various sections.

JUSTIFICATION:

The economic crisis that is affecting all New Yorkers has hit the poor, working poor and working families the hardest. More than ever before, low- and moderate-income families residing in rent-stabilized apartments are finding it increasingly difficult to pay their monthly rent. The existing safety net is narrow for tenants in this predicament and, consequently, leaves too many households unprotected. This legislation is intended to close these holes in the safety net and provide rent relief to the people who need it most the poor and working families throughout the five boroughs of New York City. It would not cost the State or City a dollar, and would be funded by landlords.

Over the years, the State Legislature has acted responsibly in creating programs that insulate some of the most needy citizens (of rent-regulated apartments in the City of New York) against rent increases. These programs, such as the Senior Citizens Rent Increase Exemption program (SCRIE) and the Disability Rent Increase Exemption program (DRIE), serve its participants effectively by providing meaningful rent relief. These programs exempt eligible tenants from rent increases. However, eligibility for these programs is far too narrow. For example, existing law only protects those tenants who are sixty-two years of age and older (SCRIE) or tenants who are disabled (DRIE), who pay one-third or more of their income for rent and whose household income is less than $29,000 (SCRIE) or $27,780 (DRIE). Combined, SCRIE and DRIE protect less than 50,000 households of the more than one million rent-stabilized apartments in the City's five boroughs. It is quite apparent that these programs do not go far enough to protect countless thousands of other tenants who are equally in need of rent relief, namely the poor and working families.

This legislation would establish a new rent relief program to supersede the existing rent relief programs for rent-stabilized housing in the five boroughs. While it would maintain the eligibility requirement of a tenant paying one-third or more of their income for rent, it would increase the household income eligibility threshold to $45,000. Under the new income threshold, approximately 295,000 households in New York City's five boroughs, impacting close to 700,000 tenants, would become eligible for rent increase exemptions amounting to $100 million. Eligibility would no longer be based upon age or disability status after July 1, 2011.

The recent decision by the Court of Appeals in the case of Roberts v. Tishman Speyer Properties created the opportunity to fund this new rent freeze program. In their decision, the Court of Appeals concluded that landlords who had collected J-51 tax benefits after 1993 while simultaneously deregulating units, had done so improperly. While over 80,000 apartments have been deregulated throughout the City by landlords since 1993, the Citizens Housing and Planning Council estimates that between 19,000 and 37,000 are in buildings that have received J-51 tax benefits. Thus, according to the Court of Appeals, these units were de-regulated improperly. However the Court of Appeals specifically declined to rule on two major aspects of this issue, namely, (1) whether its decision applied retroactively and (2) whether the four-year statute of limitations on rent overcharges applied to these claims and, if so, in what manner. The Court's failure to provide guidance on these questions has opened the door to many more years of litigation between tenants and owners, placing burdens upon both the courts and the State Division of Housing and Community Renewal.

This legislation addresses the Court's acknowledgement that if its decision created "unacceptable burdens," relief from those burdens was a matter for the State Legislature. It not only eliminates the uncertainty caused by the Court's decision but it would also protect the City's real estate tax revenue base as well as tenants in buildings facing foreclosure by providing a remedy to the Court decision's looming devastating impact. This legislation is intended to provide that relief, but only under the following prescribed conditions:

Landlords would be obligated to return to the City all of the J-51 tax benefits they received for their buildings and waive any future benefits that would otherwise be due to them within two years of the effective date of this statute. In the past decade, approximately $1. 7 billion in J-51 tax exemptions and tax abatements have been received by property owners, with hundreds of millions of dollars in benefits due and payable in the upcoming years.

No State or City financial commitment would be required for this legislation. The funding source for the rent freeze program would come from landlords (as described in the previous paragraph) and from the waiving of future J-51 tax benefits. By making such payments to the City, these landlords would be providing the financial underpinnings for a rent increase exemption program that would provide relief to 295,000 households, or close to 700,000 tenants, that have difficulties paying their rent each month. This represents assistance for an unprecedented 30% of households in the rent-stabilized apartment system throughout the five boroughs 88,000 households in Brooklyn, 70,000 in Manhattan, 69,000 in the Bronx, 68,000 in Queens and 2,000 in Staten Island.

While the City treasury would be the receiver of the repaid J-51 tax exemptions, this legislation strictly prohibits any disbursement of these funds to any program other than the tax abatement for rent-controlled and regulated properties occupied by persons and families of low to moderate income. Essentially, the City will administer this program in the same manner that both DRIE and SCRIE programs are currently being implemented. Since the City will be

responsible for allocations and expenditures of the rent cap fund, the City will be required to calculate the revenues needed to full) fund the rent freeze program for a minimum of ten years. In the event an excess of revenue is generated to fund the rent freeze program, the City is then authorized to transfer the excess funds to provide housing assistance to those persons who are homeless and in need of housing. All accounting from the rent cap fund and excess spending proposals will be submitted to the state legislature on a yearly basis and will be subject to approval by the state legislature.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: First year costs of the rent freeze would be approximately $100 million growing to $130 million in year ten if all eligible households participated and contract rents were increased by 3% annually. Based on historical experience with SCRIE, full participation levels are not anticipated. However, revenue generated through the J-51 take-back and anticipated increases in real estate assessments that would occur as a result of the take-back would more than offset the costs of the rent freeze and the associated administrative costs.

EFFECTIVE DATE: Provides that this act shall take effect immediately and describes the expiration dates of various sections.


Text

STATE OF NEW YORK ________________________________________________________________________ 6811 IN SENATE February 9, 2010 ___________
Introduced by Sen. ESPADA -- 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 and the administrative code of the city of New York, in relation to tax abatement for rent regulated property occupied by certain senior citizens or low-income and moder- ate-income persons 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 OF LOW-INCOME AND MODERATE-INCOME. S 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, ON AND AFTER JULY FIRST, TWO THOUSAND ELEVEN, QUALIFIES AS A PERSON OF LOW-INCOME OR MODERATE-INCOME, and is entitled to the possession or to the use or occupancy of a dwelling unit. ON AND AFTER SUCH DATE, THE PROVISIONS OF CLAUSES (I) AND (II) OF THIS PARAGRAPH SHALL NO LONGER BE USED TO DEFINE THE TERM "HEAD OF HOUSEHOLD"; S 3. Paragraph a of subdivision 3 of section 467-b of the real proper- ty tax law, as separately amended by chapters 188 and 205 of the laws of 2005, is amended to read as follows: a. for a dwelling unit where PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN the head of the household is a person sixty-two years of age or older OR WHO, ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN, QUALIFIES AS A PERSON OF LOW-INCOME OR MODERATE-INCOME, 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-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, and twenty-nine thou- sand dollars beginning July first, two thousand nine, as may be provided by the local law, ordinance or resolution adopted pursuant to this section, AND FORTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOU- SAND ELEVEN; 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 sala- ry or earnings and projecting his or her retirement income over the entire period of such year. S 4. The opening paragraph of subdivision m of section 26-405 of the administrative code of the city of New York, as amended by local law number 76 of the city of New York for the year 2005, is amended to read as follows: The council finds that there is an acute and continuing housing short- age; that this shortage has and continues to have an adverse effect on the population and especially on inhabitants of the city who are [sixty-two years of age or older and of limited means] PERSONS OF LOW-INCOME OR MODERATE-INCOME, as well as persons with disabilities, who cannot pay enough rent to induce private enterprise to maintain decent housing at rents they can afford to pay; that this condition is and continues to be particularly acute in a time of rising costs such as the present; that present rising costs and the continuing increase in rents pursuant to amendments to the New York city rent and rehabilitation law may result in such persons being unable to pay their rent, thus making them subject to eviction; that such hardships fall with particular severity upon PERSONS OF LOW-INCOME OR MODERATE-INCOME, older persons in the population, as well as persons with disabilities, because of their particular inability to find alternative accommodations within their means, because of the trauma experienced by many older persons, as well as persons with disabilities, who have to relocate and because they may endanger their health by paying additional sums for shelter and thereby deprive themselves of other necessities; that hardships imposed upon such people adversely affect their health and welfare and the general welfare of the inhabitants of the city. The council is aware of the provisions set forth in chapter three hundred seventy-two and chapter one thousand twelve of the laws of nineteen hundred seventy-one. It is our considered opinion that this legislation extending the rent exemption to cover the resultant rent increases due to the maximum rents established January first, nineteen hundred seventy-two, is not more stringent or restrictive than those presently in effect. It is found and declared to be necessary for the health, welfare and safety of persons OF LOW-INCOME OR MODERATE-INCOME, PERSONS who are sixty-two years of age or older, persons with disabilities and inhabitants of the city that the city continue a system of special rent adjustments for such older persons, as well as extend such special rent adjustments to persons with disabilities as hereinafter provided. S 5. Subparagraphs (i) and (ii) of paragraph 2 of subdivision m of section 26-405 of the administrative code of the city of New York, subparagraph (i) as separately amended by local law number 76 of the city of New York for the year 2005 and subparagraph (ii) as amended by local law number 44 of the city of New York for the year 2009, are amended to read as follows:
(i) PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN the head of the household residing in the housing accommodation is sixty-two years of age or older OR WHO, ON AND AFTER JULY FIRST, TWO THOUSAND ELEVEN QUALIFIES AS A PERSON OF LOW-INCOME OR MODERATE-INCOME, or is a person with a disabili- ty, and is entitled to the possession or to the use or occupancy of a dwelling unit. To qualify as a person with a disability for the purposes of this section, an individual shall submit to such agency as the mayor shall designate proof (as specified by regulation of such agency as the mayor shall designate) showing that such individual is currently receiv- ing social security disability insurance (SSDI) or supplemental security income (SSI) benefits under the federal social security act or disabili- ty pension or disability compensation benefits provided by the United States department of veterans affairs, or was previously eligible by virtue of receiving disability benefits under the supplemental security income program or the social security disability program and is current- ly receiving medical assistance benefits based on determination of disa- bility as provided in section three hundred sixty-six of the social services law. Nothing herein contained shall render ineligible for benefits persons receiving supplemental security income or additional state payments, or both, under a program administered by the United States department of health and human services or by such department and the New York state department of social services. (ii) the aggregate disposable income (as defined by regulation of the department of finance) of all members of the household residing in the housing accommodation whose head of household is sixty-two years of age or older does not exceed 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, AND FORTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND ELEVEN per year, after deduction of federal, state and city income and social security taxes. For purposes of this subparagraph, "aggregate disposable income" shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the date of eligibility of a head of the household receiving benefits under this subdivision whether received by the head of the household or any other member of the household. S 6. Paragraph 5 of subdivision m of section 26-405 of the administra- tive code of the city of New York, as amended by local law number 44 of the city of New York for the year 2009, is amended to read as follows: (5) A rent exemption order shall be issued to each tenant who applies to the department of finance or such agency as the mayor shall designate (which agency may also be the department of finance) in accordance with such department's or agency's regulations and who is found to be eligi- ble under this subdivision. Such order shall take effect on the first day of the first month after receipt of such application, except that where the aggregate disposable income of all members of the household residing in the housing accommodation whose head of the household is sixty-two years of age or older is greater than five thousand dollars
per year but does not exceed 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, AND FORTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND ELEVEN, per year pursuant to subparagraph (ii) of paragraph two of subdivision m of this section on orders issued on applications received before July first, nineteen hundred seventy-five, the effective date of such order shall be the later of (1) June thirti- eth, nineteen hundred seventy-four or (2) the last day of the month in which a person becomes an eligible head of household in the housing accommodation in which such person resides at the time of filing the most recent application for a rent exemption order; and further, except that where any other application has been received within ninety days of the issuance of the order increasing the tenant's maximum rent pursuant to paragraph three, four or six of subdivision (a) of this section, or subparagraph (a), (b), (c), or (l) of paragraph (1) of subdivision (g) of this section or pursuant to court order, whichever is later, the rent exemption order shall without further order take effect as of the effec- tive date of said order increasing the tenant's rent including any retroactive increments collectible pursuant to such orders. S 7. Subdivision d of section 26-406 of the administrative code of the city of New York, as amended by local law number 44 of the city of New York for the year 2009, is amended to read as follows: d. Prior to the commencement of each fiscal year, the department of finance shall determine the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders granted PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN to persons sixty-two years of age or older OR WHO, ON AND AFTER JULY FIRST, TWO THOUSAND ELEVEN QUALIFY AS PERSONS OF LOW-INCOME OR MODERATE-INCOME, WHICH were in effect for all or any part of the preceding calendar year. [Prior to the commencement of each fiscal year, such agency as the mayor shall designate shall determine and, if such agency is not the depart- ment of finance, shall notify the department of finance of the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders granted to persons with disa- bilities were in effect for all or any part of the preceding calendar year.] The commissioner of finance shall make the appropriate adjustment in the real estate tax payable in such fiscal year. S 8. The section heading of section 26-509 of the administrative code of the city of New York, as amended by local law number 76 of the city of New York for the year 2005, is amended to read as follows: Application for rent increase exemptions and equivalent tax abatement for rent regulated property occupied by certain senior citizens or persons with disabilities OR LOW-INCOME AND MODERATE-INCOME PERSONS. S 9. The opening paragraph of subdivision b of section 26-509 of the administrative code of the city of New York, as amended by local law number 76 of the city of New York for the year 2005, is amended to read as follows: Rent increase exemptions for certain senior citizens and persons with disabilities OR LOW-INCOME AND MODERATE-INCOME PERSONS. S 10. Subparagraphs (i) and (ii) of paragraph 2 of subdivision b of section 26-509 of the administrative code of the city of New York, subparagraph (i) as amended by local law number 76 of the city of New York for the year 2005 and subparagraph (ii) as amended by local law
number 44 of the city of New York for the year 2009, are amended to read as follows: (i) PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN the head of the household residing in the housing accommodation is sixty-two years of age or older OR WHO, ON AND AFTER JULY FIRST, TWO THOUSAND ELEVEN QUALIFIES AS A PERSON OF LOW-INCOME OR MODERATE-INCOME, or is a person with a disabili- ty, and is entitled to the possession or to the use or occupancy of a dwelling unit. To qualify as a person with a disability for the purposes of this section, an individual shall submit to such agency as the mayor shall designate proof (as specified by regulation of such agency as the mayor shall designate) showing that such individual is currently receiv- ing social security disability insurance (SSDI) or supplemental security income (SSI) benefits under the federal social security act or disabili- ty pension or disability compensation benefits provided by the United States department of veterans affairs, or was previously eligible by virtue of receiving disability benefits under the supplemental security income program or the social security disability program and is current- ly receiving medical assistance benefits based on determination of disa- bility as provided in section three hundred sixty-six of the social services law. (ii) PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN the aggregate disposable income (as defined by regulation of the department of finance) of all members of the household residing in the housing accommodation whose head of the household is sixty-two years of age or older OR WHO, ON AND AFTER JULY FIRST, TWO THOUSAND ELEVEN QUALIFIES AS A PERSON OF LOW-IN- COME OR MODERATE-INCOME does not exceed 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, AND FORTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND ELEVEN, per year, after deduction of federal, state and city income and social security taxes. For purposes of this subparagraph, "aggregate disposable income" shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103- 286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of the head of the household receiving benefits under this section whether received by the head of the house- hold or any other member of the household; S 11. Subparagraph (ii) of paragraph 3 of subdivision b of section 26-509 of the administrative code of the city of New York, as amended by local law 44 of the city of New York for the year 2009, is amended to read as follows: (ii) Each such order shall expire upon termination of occupancy of the housing accommodation by the tenant to whom it is issued. The landlord shall notify the department of finance in the case of a household whose eligibility for such order PRIOR TO JULY FIRST, TWO THOUSAND ELEVEN EITHER is based on the fact that the head of such household is sixty-two years of age or older, or such agency as the mayor shall designate in the case of a household whose eligibility for such order is based on the fact that the head of such household is a person with a disability, OR WHO, ON AND AFTER JULY FIRST, TWO THOUSAND ELEVEN QUALIFIES AS A PERSON
OF LOW-INCOME OR MODERATE-INCOME, on a form to be prescribed by such department or agency, within thirty days of each such termination of occupancy. S 12. The opening paragraph of section 26-504.1 of the administrative code of the city of New York, as amended by chapter 116 of the laws of 1997, is amended to read as follows: Upon the issuance of an order by the division, "housing accommo- dations" shall not include housing accommodations which: (1) are occu- pied by persons who have a total annual income in excess of one hundred seventy-five thousand dollars per annum for each of the two preceding calendar years, as defined in and subject to the limitations and process set forth in section 26-504.3 of this chapter; and (2) have a legal regulated rent of two thousand dollars or more per month. Provided, however, that this exclusion shall not apply to housing accommodations which became or become subject to this law (a) by virtue of receiving tax benefits pursuant to section four hundred twenty-one-a or four hundred eighty-nine of the real property tax law, except as otherwise provided in subparagraph (i) of paragraph (f) of subdivision two of section four hundred twenty-one-a of the real property tax law, or (b) by virtue of article seven-C of the multiple dwelling law. HOUSING ACCOMMODATIONS WHICH WERE SUBJECT TO THIS LAW IMMEDIATELY PRIOR TO THE COMMENCEMENT OF THE RECEIPT OF TAX BENEFITS PURSUANT TO SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW SHALL NOT BE DEEMED TO BE HOUSING ACCOMMODATIONS WHICH BECAME OR BECOME SUBJECT TO THIS LAW BY VIRTUE OF RECEIVING TAX BENEFITS PURSUANT TO SUCH SECTION FOUR HUNDRED EIGHTY-NINE, PROVIDED, HOWEVER, THAT THE EXCLUSION SET FORTH IN THIS SECTION SHALL BE APPLICABLE TO SUCH HOUSING ACCOMMODATIONS ONLY WHERE THE RECIPIENT OF TAX BENEFITS PURSUANT TO SUCH SECTION HAS ACTED IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION SEVENTEEN OF SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW AND SUBDIVISION EE OF SECTION 11-243 OF THIS CODE. S 13. Subdivision a of section 26-504.2 of the administrative code of the city of New York, as amended by chapter 82 of the laws of 2003, is amended to read as follows: a. "Housing accommodations" shall not include any housing accommo- dation which becomes vacant on or after April first, nineteen hundred ninety-seven and where at the time the tenant vacated such housing accommodation the legal regulated rent was two thousand dollars or more per month, or any housing accommodation which is or becomes vacant on or after the effective date of the rent regulation reform act of 1997 with a legal regulated rent of two thousand dollars or more per month. This exclusion shall apply regardless of whether the next tenant in occupancy or any subsequent tenant in occupancy actually is charged or pays less than two thousand dollars a month. Provided however, that this exclusion shall not apply to housing accommodations which became or become subject to this law (a) by virtue of receiving tax benefits pursuant to section four hundred twenty-one-a or four hundred eighty-nine of the real prop- erty tax law, except as otherwise provided in subparagraph (i) of para- graph (f) of subdivision two of section four hundred twenty-one-a of the real property tax law, or (b) by virtue of article seven-C of the multi- ple dwelling law. HOUSING ACCOMMODATIONS WHICH WERE SUBJECT TO THIS LAW IMMEDIATELY PRIOR TO THE COMMENCEMENT OF THE RECEIPT OF TAX BENEFITS PURSUANT TO SECTION FOUR HUNDRED EIGHTY-NINE OF THE REAL PROPERTY TAX LAW SHALL NOT BE DEEMED TO BE HOUSING ACCOMMODATIONS WHICH BECAME OR BECOME SUBJECT TO THIS LAW BY VIRTUE OF RECEIVING TAX BENEFITS PURSUANT TO SUCH SECTION FOUR HUNDRED EIGHTY-NINE, PROVIDED, HOWEVER, THAT THE
EXCLUSION SET FORTH IN THIS SUBDIVISION SHALL BE APPLICABLE TO SUCH HOUSING ACCOMMODATIONS ONLY WHERE THE RECIPIENT OF TAX BENEFITS PURSUANT TO SUCH SECTION FOUR HUNDRED EIGHTY-NINE HAS ACTED IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION SEVENTEEN OF SECTION FOUR HUNDRED EIGHTY- NINE OF THE REAL PROPERTY TAX LAW AND SUBDIVISION EE OF SECTION 11-243 OF THIS CODE. This section shall not apply, however, to or become effec- tive with respect to housing accommodations which the commissioner determines or finds that the landlord or any person acting on his or her behalf, with intent to cause the tenant to vacate, engaged in any course of conduct (including, but not limited to, interruption or discontin- uance of required services) which interfered with or disturbed or was intended to interfere with or disturb the comfort, repose, peace or quiet of the tenant in his or her use or occupancy of the housing accom- modations and in connection with such course of conduct, any other general enforcement provision of this law shall also apply. S 14. Section 489 of the real property tax law is amended by adding a new subdivision 17 to read as follows: 17. WHERE HOUSING ACCOMMODATIONS WERE SUBJECT TO RENT REGULATION IMME- DIATELY PRIOR TO THE RECEIPT OF TAX EXEMPTION OR TAX ABATEMENT BENEFITS PURSUANT TO THIS SECTION, THE RECIPIENT OF SUCH BENEFITS SHALL BE AUTHORIZED TO MAKE TO THE CITY OF NEW YORK, AND THE CITY OF NEW YORK SHALL BE OBLIGED TO ACCEPT, PAYMENT OF THE FULL AMOUNT OF ALL SUCH BENE- FITS RECEIVED BY SUCH RECIPIENT PURSUANT TO ANY ORDER OR DETERMINATION ISSUED BY THE LOCAL HOUSING AGENCY ADMINISTERING THIS LAW OR THE LOCAL GOVERNMENT AGENCY RESPONSIBLE FOR REAL PROPERTY TAX ASSESSMENT WHICH IS CURRENTLY IN EFFECT AND TO WAIVE THE RECEIPT OF ANY FURTHER TAX EXEMPTION OR TAX ABATEMENT BENEFITS WHICH WOULD OTHERWISE BE DUE TO SUCH RECIPIENT PURSUANT TO ANY SUCH ORDER OR DETERMINATION CURRENTLY IN EFFECT. SUCH PAYMENT AND SUCH WAIVER SHALL BE MADE NO LATER THAN JUNE THIRTIETH, TWO THOUSAND TWELVE. SUCH PAYMENT AND WAIVER SHALL ENTITLE SUCH RECIPIENT TO THE BENEFIT OF THE EXCLUSIONS SET FORTH IN SECTION 26-504.1 AND SECTION 26-504.2 OF THE ADMINISTRATIVE CODE WHERE THE HOUS- ING ACCOMMODATIONS WERE SUBJECT TO RENT REGULATION IMMEDIATELY PRIOR TO THE RECEIPT OF TAX BENEFITS PURSUANT TO THIS SECTION. SUCH PAYMENTS OF TAX BENEFITS RECEIVED BY SUCH RECIPIENTS, AND THE AMOUNTS OF SUCH BENE- FITS TO BE WAIVED BY SUCH RECIPIENTS, SHALL BE PAID INTO A SEPARATE FUND KNOWN AS THE RENT FREEZE PROGRAM FUND IN THE TREASURY OF THE CITY. THE REVENUES PAID INTO THE FUND SHALL NOT BE REVENUES OF THE CITY AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE TREASURY. SUCH MONIES SHALL BE ALLOCATED AND EXPENDED SOLELY FOR THE PURPOSES OF PROVIDING THE TAX ABATEMENT FOR RENT-CONTROLLED AND REGULATED PROPERTY OCCUPIED BY PERSONS OF LOW INCOME AND MODERATE INCOME AS AUTHORIZED PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN-B OF THIS ARTICLE AND IMPLEMENTED PURSUANT TO SECTIONS 26-405, 26-406 AND 26-509 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK. EXCEPT THAT ON AND AFTER JULY FIRST, TWO THOUSAND TWELVE, AND UPON EACH ANNIVERSARY DATE THEREAFTER, THE CITY OF NEW YORK SHALL BE AUTHORIZED TO DETERMINE WHETHER SUCH PAYMENTS AND WAIVERS MADE TO THE CITY EXCEED THE AMOUNTS REQUIRED FOR THE PURPOSES OF FUNDING SUCH RENT INCREASE EXEMPTION PROGRAM FOR NOT LESS THAN TEN YEARS AND, IF SUCH IS THE CASE, THE CITY SHALL BE AUTHORIZED TO TRANSFER SUCH EXCESS AMOUNTS TO THE GENERAL FUND OF THE CITY AND SUCH EXCESS AMOUNTS SHALL BE EXCLUSIVELY UTILIZED BY THE CITY FOR THE PURPOSES OF PROVIDING HOUSING ASSISTANCE TO INDIVIDUALS OR FAMILIES WHO ARE CONSIDERED TO BE HOMELESS AND IN NEED OF HOUSING BY THE CITY. NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWELVE, AND NO LATER THAN DECEMBER THIRTY-FIRST EACH YEAR THEREAFTER THROUGH TWO THOUSAND TWENTY-TWO, THE
DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT OF THE CITY OF NEW YORK SHALL ISSUE A REPORT TO THE COMMITTEE ON HOUSING OF THE ASSEMBLY AND THE COMMITTEE ON HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT OF THE SENATE SETTING FORTH SUCH INFORMATION AS IT RELATES TO THE AMOUNTS OF PAYMENTS AND WAIVERS MADE PURSUANT TO THIS SECTION, THE MANNER IN WHICH SUCH EXCESS AMOUNTS, IF ANY, HAVE BEEN UTILIZED BY SUCH CITY FOR THE PURPOSES OF PROVIDING HOUSING ASSISTANCE TO INDIVIDUALS OR FAMILIES WHO ARE CONSIDERED TO BE HOMELESS AND IN NEED OF HOUSING BY THE CITY AND ANY SUCH OTHER INFORMATION RELATING TO THE RENT INCREASE EXEMPTION PROGRAM AND THE FUNDING THEREOF AS MAY BE APPROPRIATE. S 15. Section 11-243 of the administrative code of the city of New York is amended by adding a new subdivision ee to read as follows: EE. WHERE HOUSING ACCOMMODATIONS WERE SUBJECT TO RENT REGULATION IMME- DIATELY PRIOR TO THE RECEIPT OF TAX EXEMPTION OR TAX ABATEMENT BENEFITS PURSUANT TO THIS SECTION, THE RECIPIENT OF SUCH BENEFITS SHALL BE AUTHORIZED TO MAKE TO THE CITY OF NEW YORK, AND THE CITY OF NEW YORK SHALL BE OBLIGED TO ACCEPT, PAYMENT OF THE FULL AMOUNT OF ALL SUCH BENE- FITS RECEIVED BY SUCH RECIPIENT PURSUANT TO ANY ORDER OR DETERMINATION ISSUED BY THE DEPARTMENT OR BY THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT WHICH IS CURRENTLY IN EFFECT AND TO WAIVE THE RECEIPT OF ANY FURTHER TAX EXEMPTION OR TAX ABATEMENT BENEFITS WHICH WOULD OTHER- WISE BE DUE TO SUCH RECIPIENT PURSUANT TO ANY SUCH ORDER OR DETERMI- NATION CURRENTLY IN EFFECT. SUCH PAYMENT AND SUCH WAIVER SHALL BE MADE NO LATER THAN JUNE THIRTIETH, TWO THOUSAND TWELVE. SUCH PAYMENT AND WAIVER SHALL ENTITLE SUCH RECIPIENT TO THE BENEFIT OF THE EXCLUSIONS SET FORTH IN SECTION 26-504.1 AND SECTION 26-504.2 OF THIS CODE WHERE THE HOUSING ACCOMMODATIONS WERE SUBJECT TO RENT REGULATION IMMEDIATELY PRIOR TO THE RECEIPT OF TAX BENEFITS PURSUANT TO THIS SECTION. SUCH PAYMENTS OF TAX BENEFITS RECEIVED BY SUCH RECIPIENTS, AND THE AMOUNTS OF SUCH BENEFITS TO BE WAIVED BY SUCH RECIPIENTS, SHALL BE PAID INTO A SEPARATE FUND KNOWN AS THE RENT FREEZE PROGRAM FUND IN THE TREASURY OF THE CITY. THE REVENUES PAID INTO THE FUND SHALL NOT BE REVENUES OF THE CITY AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE TREASURY. SUCH MONIES SHALL BE ALLOCATED AND EXPENDED SOLELY FOR THE PURPOSES OF PROVIDING THE TAX ABATEMENT FOR RENT-CONTROLLED AND RENT-STABILIZED PROPERTY OCCUPIED BY PERSONS OF LOW-INCOME AND MODERATE-INCOME AS AUTHORIZED PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN-B OF THE REAL PROPERTY TAX LAW AND IMPLEMENTED PURSUANT TO SECTIONS 26-405, 26-406 AND 26-509 OF THIS CODE. EXCEPT THAT ON AND AFTER JULY FIRST, TWO THOUSAND TWELVE, AND UPON EACH ANNIVERSARY DATE THEREAFTER, THE CITY OF NEW YORK SHALL BE AUTHORIZED TO DETERMINE WHETHER SUCH PAYMENTS AND WAIVERS MADE TO THE CITY EXCEED THE AMOUNTS REQUIRED FOR THE PURPOSES OF FUNDING SUCH RENT INCREASE EXEMPTION PROGRAM FOR NOT LESS THAN TEN YEARS AND, IF SUCH IS THE CASE, THE CITY SHALL BE AUTHORIZED TO TRANSFER SUCH EXCESS AMOUNTS TO THE GENERAL FUND OF THE CITY AND SUCH EXCESS AMOUNTS SHALL BE EXCLUSIVELY UTILIZED BY THE CITY FOR THE PURPOSES OF PROVIDING HOUSING ASSISTANCE TO INDIVIDUALS OR FAMILIES WHO ARE CONSIDERED TO BE HOMELESS AND IN NEED OF HOUSING BY THE CITY. NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWELVE, AND NO LATER THAN DECEMBER THIRTY-FIRST EACH YEAR THEREAFTER THROUGH TWO THOUSAND TWENTY-TWO, THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT OF THE CITY OF NEW YORK SHALL ISSUE A REPORT TO THE COMMITTEE ON HOUSING OF THE ASSEMBLY AND THE COMMITTEE ON HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT OF THE SENATE SETTING FORTH SUCH INFORMATION AS IT RELATES TO THE AMOUNTS OF PAYMENTS AND WAIVERS MADE PURSUANT TO THIS SECTION, THE MANNER IN WHICH SUCH EXCESS AMOUNTS, IF ANY, HAVE BEEN UTILIZED BY SUCH CITY FOR THE PURPOSES OF
PROVIDING HOUSING ASSISTANCE TO INDIVIDUALS OR FAMILIES WHO ARE CONSID- ERED TO BE HOMELESS AND IN NEED OF HOUSING BY THE CITY AND ANY SUCH OTHER INFORMATION RELATING TO THE RENT INCREASE EXEMPTION PROGRAM AND THE FUNDING THEREOF AS MAY BE APPROPRIATE. S 16. This act shall take effect immediately, provided, that sections twelve and thirteen of this act shall be deemed to have been in full force and effect on and after July 6, 1993; provided, further, that: (a) the amendments to section 26-405 of the city rent and rehabili- tation law made by sections four, five and six of this act shall remain in full force and effect only as long as the public emergency requiring the regulation and control of residential rents and evictions continues, as provided in subdivision 3 of section 1 of the local emergency housing rent control act; and (b) the amendments to section 26-406 of the city rent and rehabili- tation law made by section seven of this act shall remain in full force and effect only as long as the public emergency requiring the regulation and control of residential rents and evictions continues, as provided in subdivision 3 of section 1 of the local emergency housing rent control act; and (c) the amendments to section 26-509 of chapter 4 of title 26 of the administrative code of the city of New York made by sections eight, nine, ten and eleven of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law; and (d) the amendments to section 26-504.1 of chapter 4 of title 26 of the administrative code of the city of New York made by section twelve of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law; and (e) the amendments to section 26-504.2 of chapter 4 of title 26 of the administrative code of the city of New York made by section thirteen of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section 26-520 of such law; (f) the amendments to section 467-b of the real property tax law made by sections one, two and three of this act shall not affect the expira- tion of such section and shall be deemed to expire therewith; and (g) this act shall preclude any and all claims in any administrative or judicial proceeding relating to the deregulation of housing accommo- dations which were subject to rent regulation immediately prior to the receipt of tax benefits pursuant to section 489 of the real property tax law, provided that the recipient of such tax benefits has acted in accordance with subdivision 17 of such section, regardless of whether such claims are brought prior or subsequent to the effective date of this act.

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