S T A T E O F N E W Y O R K
________________________________________________________________________
566
2015-2016 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2015
___________
Introduced by M. of A. LENTOL, AUBRY, WRIGHT, ABBATE, ROBINSON, CYMBROW-
ITZ, ORTIZ -- Multi-Sponsored by -- M. of A. BRENNAN -- read once and
referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to a partial real
property tax abatement for owners in certain cities who charge rents
below fair market rental value
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The real property tax law is amended by adding a new
section 467-i to read as follows:
S 467-I. PARTIAL TAX ABATEMENT FOR OWNERS IN CERTAIN CITIES WHO CHARGE
RENTS BELOW FAIR MARKET VALUE. 1. AS USED IN THIS SECTION:
A. "ELIGIBLE HOUSEHOLD" MEANS A HOUSEHOLD (I) WHOSE GROSS INCOME DOES
NOT EXCEED EIGHTY PERCENT OF THE MEDIAN INCOME LEVEL FOR THE CENSUS
TRACT, AS SET BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT, IN WHICH THE HOUSEHOLD RESIDES;
(II) WHOSE LEASE FOR AN ELIGIBLE UNIT PROVIDES FOR AN ANNUAL RENT
WHICH IS AT LEAST THIRTY PERCENT OF THE HOUSEHOLD'S ANNUAL NET INCOME;
AND
(III) HAS LIVED IN THE SAME APARTMENT FOR AT LEAST ONE YEAR.
ANY HOUSEHOLD CONTAINING A MEMBER OF THE UNIT OWNER'S IMMEDIATE FAMILY
SHALL NOT QUALIFY AS AN ELIGIBLE HOUSEHOLD NOTWITHSTANDING THE FACT THAT
THE OTHER CRITERIA ARE MET.
B. "ELIGIBLE UNIT" MEANS A RENTAL UNIT IN A MULTIPLE DWELLING CONTAIN-
ING NOT MORE THAN FIVE RENTAL UNITS WHICH IS SUBJECT NEITHER TO THE
EMERGENCY HOUSING RENT CONTROL LAW, NOR TO THE RENT AND REHABILITATION
LAW OF THE CITY OF NEW YORK ENACTED PURSUANT TO THE LOCAL EMERGENCY
HOUSING RENT CONTROL LAW, NOR THE EMERGENCY TENANT PROTECTION ACT OF
NINETEEN SEVENTY-FOUR.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01790-01-5
A. 566 2
C. "FAIR MARKET RENTAL VALUE" MEANS THE FAIR MARKET RENT SET FOR THE
CITY BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT;
SUCH RENT MAY BE ADJUSTED, AT THE DISCRETION OF THE SUPERVISING AGENCY,
BY, AMONG OTHER THINGS, EXAMINING REAL PROPERTY TAX ROLLS TO MORE ACCU-
RATELY REFLECT THE FAIR MARKET RENTS IN PARTICULAR NEIGHBORHOODS.
D. "GROSS INCOME" MEANS INCOME FROM ALL SOURCES AND INCLUDES SOCIAL
SECURITY AND RETIREMENT BENEFITS, SUPPLEMENTAL SECURITY INCOME AND ADDI-
TIONAL STATE PAYMENTS, PUBLIC ASSISTANCE BENEFITS, INTEREST, DIVIDENDS,
NET RENTAL INCOME, SALARY OR EARNINGS, AND NET INCOME FROM SELF-EMPLOY-
MENT, BUT SHALL NOT INCLUDE INCOME FROM GIFTS, ALIMONY, ANNUITIES, CHILD
SUPPORT, 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 TAKES EFFECT
AFTER THE DATE OF ELIGIBILITY OF THE HEAD OF THE HOUSEHOLD RECEIVING
BENEFITS HEREUNDER, WHETHER RECEIVED BY THE HEAD OF THE HOUSEHOLD OR ANY
OTHER MEMBER OF THE HOUSEHOLD.
E. "HEAD OF THE HOUSEHOLD" MEANS A PERSON WHO IS ENTITLED TO THE
POSSESSION OR THE USE OR OCCUPANCY OF A DWELLING UNIT.
F. "HOUSEHOLD" MEANS THE HEAD OF THE HOUSEHOLD AND ANY PERSON, OTHER
THAN A BONA FIDE ROOMER, BOARDER, OR SUBTENANT WHO IS NOT RELATED TO THE
HEAD OF THE HOUSEHOLD, PERMANENTLY RESIDING IN THE DWELLING UNIT.
G. "MULTIPLE DWELLING" MEANS MULTIPLE DWELLING AS DEFINED IN SUBDIVI-
SION SEVEN OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
H. "OWNER'S IMMEDIATE FAMILY" MEANS ANY OR ALL OF THE FOLLOWING
RELATIONS TO THE OWNER OF AN ELIGIBLE UNIT: HUSBAND, WIFE, SON, DAUGH-
TER, STEPSON, STEPDAUGHTER, FATHER, MOTHER, FATHER-IN-LAW,
MOTHER-IN-LAW, GRANDMOTHER, OR GRANDFATHER.
I. "NET INCOME" MEANS GROSS INCOME MINUS ALL INCOME AND SOCIAL SECURI-
TY TAXES PAID.
J. "REAL PROPERTY TAX YEAR" MEANS THE TWELVE-MONTH PERIOD FOR WHICH
REAL PROPERTY TAXES ARE CHARGED; IN THE CITY OF NEW YORK THE REAL PROP-
ERTY TAX YEAR IS JULY FIRST THROUGH JUNE THIRTIETH OF THE NEXT CALENDAR
YEAR.
K. "SUPERVISING AGENCY" MEANS THE COMPTROLLER IN A MUNICIPALITY HAVING
A COMPTROLLER; IN A MUNICIPALITY HAVING NO COMPTROLLER, THE CHIEF FISCAL
OFFICER OF SUCH MUNICIPALITY; EXCEPT THAT IN THE CITY OF NEW YORK IT
SHALL BE THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT.
2. THE GOVERNING BODY OF A CITY WITH A POPULATION OF ONE MILLION OR
MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT, AFTER PUBLIC HEARING,
IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, A LOCAL LAW, ORDI-
NANCE, OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES OF SAID CITY
IMPOSED ON REAL PROPERTY. THE ABATEMENT SHALL WORK AS FOLLOWS: AN OWNER
SHALL BE ENTITLED TO A PARTIAL TAX ABATEMENT OF THE REAL PROPERTY TAXES
ASSESSED AGAINST THE MULTIPLE DWELLING CONTAINING THE ELIGIBLE UNIT WHEN
SUCH OWNER RENTS THE ELIGIBLE UNIT, FOR AT LEAST ONE ADDITIONAL YEAR, TO
AN ELIGIBLE HOUSEHOLD AT LESS THAN THE FAIR MARKET RENTAL VALUE FOR THE
UNIT. THE OWNER OF A MULTIPLE DWELLING DEFINED AS CLASS ONE REAL PROPER-
TY IN SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER SHALL RECEIVE A
RETROACTIVE PARTIAL ABATEMENT EQUAL TO THE LESSER OF: (I) THE REAL PROP-
ERTY TAXES ASSESSED AGAINST THE MULTIPLE DWELLING CONTAINING THE ELIGI-
BLE UNIT IN THE APPLICABLE REAL PROPERTY TAX YEAR, AND (II) FIFTY
PERCENT OF THE DIFFERENCE OF THE FAIR MARKET RENTAL VALUE FOR THE ELIGI-
BLE UNIT AND THE ACTUAL RENT WHICH WAS COLLECTED FROM THE ELIGIBLE
A. 566 3
HOUSEHOLD FOR THE UNIT IN THE APPLICABLE REAL PROPERTY TAX YEAR. THE
OWNER OF A MULTIPLE DWELLING DEFINED AS CLASS TWO REAL PROPERTY, AS
DEFINED IN SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER SHALL RECEIVE A
RETROACTIVE PARTIAL ABATEMENT EQUAL TO THE LESSER OF: (I) THE REAL PROP-
ERTY TAXES ASSESSED AGAINST THE MULTIPLE DWELLING CONTAINING THE ELIGI-
BLE UNIT IN THE APPLICABLE REAL PROPERTY TAX YEAR, AND (II) SIXTY
PERCENT OF THE DIFFERENCE OF THE FAIR MARKET RENTAL VALUE FOR THE ELIGI-
BLE UNIT AND THE ACTUAL RENT WHICH WAS COLLECTED FROM THE ELIGIBLE
HOUSEHOLD FOR THE UNIT IN THE APPLICABLE REAL PROPERTY TAX YEAR. THE
AMOUNT OF THE ABATEMENT SHALL BE DEDUCTED FROM THE REAL PROPERTY TAXES
LEVIED IN THE FOLLOWING REAL PROPERTY TAX YEAR ON THE MULTIPLE DWELLING
CONTAINING THE ELIGIBLE UNIT. AFTER THE FIRST YEAR IN WHICH AN OWNER
RECEIVES A TAX ABATEMENT UNDER THIS SECTION, IF THE OWNER AGREES TO RENT
THE SAME UNIT TO THE SAME HOUSEHOLD FOR AN ADDITIONAL YEAR WITH A WRIT-
TEN LEASE, AT LESS THAN THE FAIR MARKET RENTAL VALUE FOR THE UNIT,
ASSUMING SUCH UNIT REMAINS AN ELIGIBLE UNIT AND SUCH HOUSEHOLD REMAINS
AN ELIGIBLE HOUSEHOLD, THE AMOUNT OF THE ABATEMENT WILL BE INCREASED FOR
EACH SUCH ADDITIONAL YEAR BY THREE PERCENT OF THE ANNUAL RENT FOR THE
ELIGIBLE UNIT.
3. A. AN APPLICATION FOR ABATEMENT PURSUANT TO THIS SECTION FOR ANY
REAL PROPERTY TAX YEAR SHALL BE SUBMITTED TO THE SUPERVISING AGENCY BY
THE OWNER OF THE ELIGIBLE UNIT FOR EACH REAL PROPERTY TAX YEAR FOR WHICH
THE ABATEMENT IS SOUGHT.
B. THE SUPERVISING AGENCY SHALL DETERMINE THE FORM AND CONTENT OF THE
APPLICATION AND THE INFORMATION IT WILL CONTAIN. SUCH APPLICATION SHALL
REQUIRE AT A MINIMUM THAT ANY OWNER SEEKING AN ABATEMENT PURSUANT TO
THIS SECTION MUST CERTIFY THAT, FOR THE YEAR THE ABATEMENT IS BEING
SOUGHT, THE UNIT WAS AN ELIGIBLE UNIT AND THE HOUSEHOLD RESIDING IN THE
ELIGIBLE UNIT WAS AN ELIGIBLE HOUSEHOLD. IN ADDITION, THE SUPERVISING
AGENCY IS AUTHORIZED TO AND SHALL COLLECT THE FOLLOWING INFORMATION FROM
UNITS FOR WHICH AN ABATEMENT IS SOUGHT, WITHOUT LIMITATION:
(I) THE NAMES AND SOCIAL SECURITY OR TAX IDENTIFICATION NUMBERS OF ALL
HOUSEHOLD MEMBERS IN THE UNIT EIGHTEEN YEARS OR OLDER;
(II) FOR EACH HOUSEHOLD MEMBER IN THE UNIT EIGHTEEN YEARS OR OLDER,
THE TOTAL ANNUAL GROSS AND NET INCOME OF SUCH HOUSEHOLD MEMBER AS
REPORTED ON THE HOUSEHOLD MEMBER'S MOST RECENT INCOME TAX RETURN;
(III) THE AMOUNT OF MONTHLY RENT CHARGED FOR THE UNIT AND THE AMOUNT
OF RENT ACTUALLY PAID FOR ONE YEAR PRECEDING THE APPLICATION; AND
(IV) THE NUMBER OF RENTAL UNITS IN THE MULTIPLE DWELLING AND THE
MONTHLY RENT CHARGED IN EACH UNIT, WHETHER OR NOT AN ELIGIBLE UNIT, IN
THE YEAR PRECEDING THE YEAR OF THE APPLICATION.
IN COLLECTING THE INFORMATION DESCRIBED IN SUBPARAGRAPHS (I) THROUGH
(IV) OF THIS PARAGRAPH, AND ANY OTHER INFORMATION RELATING TO THE TAX
ABATEMENT DESCRIBED IN THIS SECTION, THE SUPERVISING AGENCY SHALL BE
PERMITTED, WHERE RECORDS ARE NOT AVAILABLE, TO ACCEPT SWORN AFFIDAVITS
AND OTHER CERTIFICATIONS THAT THE INFORMATION PROVIDED IS CORRECT.
C. THE SUPERVISING AGENCY SHALL INFORM IN WRITING ANY OWNER WHO
APPLIES FOR THE ABATEMENT PROVIDED FOR IN THIS SECTION OF THE AMOUNT OF
SUCH ABATEMENT NO LATER THAN THREE MONTHS AFTER RECEIVING A SUFFICIENTLY
COMPLETED APPLICATION.
4. THE SUPERVISING AGENCY IS AUTHORIZED AND DIRECTED TO PROMULGATE
RULES AND REGULATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS
SECTION.
5. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE SUPERVIS-
ING AGENCY SHALL DENY, TERMINATE OR REVOKE ANY ABATEMENT APPLIED FOR OR
GRANTED PURSUANT TO THIS SECTION UPON A DETERMINATION THAT THE RENT
A. 566 4
CERTIFIED BY THE OWNER AS THE RENT PAID BY AN ELIGIBLE UNIT WAS MATE-
RIALLY DIFFERENT THAN THE RENT ACTUALLY PAID BY THE ELIGIBLE HOUSEHOLD
FOR SUCH UNIT AND THAT THE OWNER OF THE UNIT WHO CERTIFIED THE INCORRECT
RENT DID SO PRIMARILY FOR THE PURPOSE OF RECEIVING AN ABATEMENT UNDER
THIS SECTION. IN MAKING SUCH DETERMINATION, THE SUPERVISING AGENCY MAY
CONSIDER, AMONG OTHER FACTORS, WHETHER THE RENT CERTIFIED BY THE OWNER
AS THE RENT CHARGED IS CONSISTENT WITH THE RENT CHARGED IN COMPARABLE
DWELLING UNITS.
6. EXCEPT IN ACCORDANCE WITH PROPER JUDICIAL ORDER OR AS OTHERWISE
PROVIDED BY LAW, NEITHER THE SUPERVISING AGENCY NOR AN EMPLOYEE THEREOF,
NOR ANY PERSON WHO, PURSUANT TO THIS SUBDIVISION, IS AUTHORIZED TO
INSPECT THE APPLICATION OR STATEMENTS IN CONNECTION THEREWITH REQUIRED
BY THIS SECTION, SHALL DISCLOSE OR MAKE KNOWN THE CONTENTS OF ANY SUCH
APPLICATION OR STATEMENTS. EXCEPT AS PROVIDED IN THIS SUBDIVISION THE
OFFICERS CHARGED WITH THE CUSTODY OF ANY SUCH APPLICATION OR STATEMENTS
SHALL NOT BE REQUIRED TO PRODUCE THEM IN ANY ACTION OR PROCEEDING IN ANY
COURT OR BEFORE ANY ADMINISTRATIVE TRIBUNAL, BUT ANY SUCH APPLICATION OR
STATEMENTS MAY BE PRODUCED ON BEHALF OF THE DEPARTMENT OF FINANCE.
NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY
OF A CERTIFIED COPY OF ANY SUCH APPLICATION OR STATEMENTS TO THE UNITED
STATES OF AMERICA OR ANY DEPARTMENT THEREOF, THE STATE OF NEW YORK OR
ANY DEPARTMENT THEREOF, OR A CITY HAVING A POPULATION OF ONE MILLION OR
MORE OR ANY DEPARTMENT THEREOF, PROVIDED ANY SUCH APPLICATION OR STATE-
MENTS ARE REQUIRED FOR OFFICIAL BUSINESS; NOR TO PROHIBIT THE INSPECTION
FOR OFFICIAL BUSINESS OF ANY SUCH APPLICATION OR STATEMENTS BY THE TAX
COMMISSION OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE, OR BY
THE CORPORATION COUNSEL OR OTHER LEGAL REPRESENTATIVE OF A CITY HAVING A
POPULATION OF ONE MILLION OR MORE, OR BY ANY PERSON ENGAGED OR RETAINED
BY THE DEPARTMENT OF FINANCE ON AN INDEPENDENT CONTRACT BASIS; NOR TO
PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE
IDENTIFICATION OF ANY PARTICULAR APPLICATION OR STATEMENTS.
7. THE INFORMATION CONTAINED IN APPLICATIONS OR STATEMENTS IN
CONNECTION THEREWITH, FILED WITH THE SUPERVISING AGENCY PURSUANT TO
SUBDIVISION THREE OF THIS SECTION SHALL NOT BE SUBJECT TO DISCLOSURE
UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
S 2. The abatement provided for in this act shall first apply to real
property taxes for the real property tax year which follows immediately
after the year that this act is passed, and shall apply every year ther-
eafter.
S 3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to
assessment rolls prepared on the basis of taxable status dates occurring
on or after such effective date.