Section 26-601
§ 26-601 Definitions. As used in this section. a. "Commissioner" means
the commissioner of housing and community renewal of the state of New
York.
b. "Dwelling unit" means that part of a dwelling in which an eligible
head of the household resides and which is subject to the provisions of
either article II, IV, V, or XI of the private housing finance law, or
that part of a dwelling which was or continues to be 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,
in which an eligible head of the household resides.
c. "Eligibility date" means the later of (1) January first, nineteen
hundred seventy-five, or (2) the last day of the month in which a person
became an eligible head of a household in the dwelling unit in which
such person resides at the time of filing the most recent application
for benefits hereunder, or in the case of 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,
"eligibility date" means the later of (1) July first, nineteen hundred
seventy-seven, or (2) the last day of the month in which a person became
an eligible head of a household in the dwelling unit in which such
person resides at the time of filing the most recent application for
benefits hereunder.
d. "Eligible head of the household" means a person or his or her
spouse who is sixty-two years of age or older or who qualifies as a
person with a disability pursuant to section 26-617 of this chapter and
is entitled to the possession or to the use and occupancy of a dwelling
unit, provided, however, that 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 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, for the
taxable period, or whose income for the current income tax year when
combined with the income of all members of the household residing in the
housing accommodation whose head of the household is a person with a
disability does not exceed the maximum income above which such head of
the household would not be eligible to receive cash supplemental
security income benefits under federal law during such tax year.
e. "Housing company" means any limited-profit housing company, limited
dividend housing company, redevelopment company or housing development
fund company incorporated pursuant to the private housing finance law
and operated exclusively for the benefit of persons or families of low
income, or any corporate owner of a dwelling 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.
f. "Income" means income received by the eligible head of the
household combined with the income of all other members of the household
from all sources after deduction of all income and social security taxes
and includes without limitation, social security and retirement
benefits, supplemental security income and additional state payments,
public assistance benefits, interest, dividends, net rental income,
salary and earnings, and net income from self-employment, but 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 an eligible head of the household
receiving benefits hereunder, whether received by the eligible head of
the household or any other member of the household. When the eligible
head of a household has retired on or after the commencement of the
taxable period and prior to the date of making an application for a rent
increase exemption order/tax abatement certificate pursuant to this
chapter, such person's income shall be adjusted by excluding salary or
earnings and projecting such person's retirement income over the entire
taxable period.
g. "Income tax year" means a twelve month period for which the head of
the household filed a federal personal income tax return, or if no such
return is filed, the calendar year.
h. "Increase in maximum rent" means any increase in the maximum rent
for the dwelling unit becoming effective on or after the eligibility
date, including capital assessments and voluntary capital contributions
but excluding any increase in maximum rent attributable to gas or
electrical utility charges or an increase in dwelling space, services or
equipment, 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
thirteen 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" means the maximum rent, excluding gas and electric
utility charges, which has been authorized or approved by the
commissioner or the supervising agency or the legal regulated rent
established for the dwelling unit pursuant to the provisions of either
article II, IV, V or XI of the private 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 the rental established 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.
j. "Members of the household" means the head of the household and any
person, permanently residing in the dwelling unit.
k. "Supervising agency" means the department of housing preservation
and development.
l. "Taxable period" means the income tax year immediately preceding
the date of making application for a rent increase exemption order/tax
abatement certificate.
Section 26-602
§ 26-602 Real property tax exemption. Real property of a housing
company shall be exempt from real property taxes, in an amount equal to
the rent increase exemptions actually credited to eligible heads of
households pursuant to this chapter. Any such exemption shall be in
addition to any other exemption or abatement of taxes authorized by law.
Section 26-603
§ 26-603 Reimbursement for rent exemptions; rent increase exemption
fund established. 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 credited pursuant to this
section or otherwise, the supervising agency may make or contract to
make payments to a housing 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 maximum rent accorded pursuant to
this chapter to eligible heads of the household residing in dwelling
units in such real property. A fund to be known as the rent increase
exemption fund shall be created and established in order to provide for
the payments made pursuant to this section. There may be paid into such
fund (1) all of the rental surcharges collected from the housing
companies organized 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 for the purpose of such fund.
Section 26-604
§ 26-604 Rent increase exemption funding requirement. 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 as a result of the exemption from maximum rent credited
pursuant to this chapter or otherwise, the supervising agency shall not
issue any rent increase exemption order/tax abatement certificates
unless there are monies in the rent increase exemption fund to provide
reimbursement to the housing company for the total dollar amount of all
exemptions from the payment of maximum rent accorded pursuant to this
chapter to eligible heads of the household residing in dwelling units in
such real property.
Section 26-605
§ 26-605 Rent increase exemption orders/tax abatement certificates.
(a) Subject to the provisions of this chapter an eligible head of the
household may obtain a rent increase exemption order/tax abatement
certificate entitling him or her to an exemption from increases in the
maximum rent otherwise payable in one of the following amounts:
(1) where the eligible head 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
persons' eligibility date have resulted in the maximum 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
allowance for shelter pursuant to the social services law, an amount not
exceeding that portion of any increase in maximum 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.
(b) Notwithstanding any other provision of law, when a head of a
household to whom the then current, valid tax abatement certificate has
been issued under this chapter, chapter three or chapter four of this
title moves his principal residence to a subsequent dwelling unit
subject to this chapter, 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,
the head of the household may apply to the supervising agency, subject
to the terms and conditions imposed by this chapter, 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 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 or legal regulated
rent meaning the most recent monthly deduction for the applicant in the
original dwelling unit pursuant to this section, section 26-406 or
section 26-409 of this title; or
(3) where the eligible head of the household does not receive a
monthly allowance pursuant to the social services law, the amount by
which the maximum rent or legal regulated rent of the subsequent
dwelling unit exceeds one-third of the combined income of all members of
the household.
Such certificate shall be effective as of the first day of the month
in which the tenant applied for such exemption or as of the date the
tenant took occupancy of the subsequent dwelling unit, whichever is
later, provided both occur after the effective date of this law.
(c) Notwithstanding any other provision of law and to the extent
applicable to the provisions of this chapter, any renewal application
being made by the tenant pursuant to this section, any rent increase
order then in effect with respect to such tenant shall be deemed renewed
until such time as the department of housing preservation and
development shall have found such tenant to be either eligible or
ineligible for a rent increase exemption order but in no event for more
than six additional months. If such tenant is found eligible, the order
shall be deemed to have taken effect upon expiration of the exemption.
In the event that any such tenant shall, subsequent to any such
automatic renewal, not be granted a rent increase exemption order, such
tenant shall be liable to his or her landlord for the difference between
the amounts he or she has paid under the provisions of the automatically
renewed order and the amounts which he or she would have been required
to pay in the absence of such order. Any rent increase exemption order
issued pursuant to this chapter shall include provisions giving notice
as to the contents of this section relating to automatic renewals of
rent exemption orders.
(d) notwithstanding any other provision of law to the contrary, where
an eligible head of the household holds a current, valid rent increase
exemption order/tax abatement certificate and, after the effective date
of this subdivision, 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
thereof, 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 reestablish 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 monthly allowance for shelter pursuant to the
social services law, less than one-third of income; 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
entitled to receive pursuant to law. For purposes of this subdivision, 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 section four hundred sixty-seven-c
of the real property tax law or an amendment to subdivision f of section
26-601 of this code made on or after April first, nineteen hundred
eighty-seven. For purposes of this subdivision, "adjusted rent" shall
mean maximum rent less the amount set forth in a rent increase exemption
order/tax abatement certificate.
Section 26-605.1
§ 26-605.1 Effect of reclassification of dwelling units.
Notwithstanding the provisions of this chapter, chapter three or chapter
four of this title, when a dwelling unit subject to this chapter is
later reclassified by order of the commissioner, the supervising agency
or by any other governmental 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,
regulation under chapter four of this title or the emergency tenant
protection act of nineteen seventy-four, or when a dwelling unit subject
to regulation under such act, chapter four or chapter three of this
title is reclassified by order of the commissioner or the supervising
agency or by operation of law to 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 thirteen of the national
housing act, as amended, a head of the household who held or holds a
valid rent increase exemption order/tax abatement certificate at the
time of the reclassification shall be issued a rent increase exemption
order under this chapter or chapter four of this title, as applicable,
continuing the previous exemption notwithstanding the reclassification
of the dwelling unit.
Section 26-606
§ 26-606 Applications for exemption orders/tax abatement certificates;
issuance and copies. The eligible head of the household shall apply
annually to the supervising agency for a rent increase exemption
order/tax abatement certificate on a form to be prescribed and made
available by the supervising agency. The supervising agency shall
approve or disapprove applications and, if it approves, shall issue a
rent increase exemption order/tax abatement certificate. Copies of such
order/certificate shall be issued to the housing company managing the
dwelling unit of the eligible head of the household, to the eligible
head of the household and to the department of finance.
Section 26-607
§ 26-607 Effective dates of exemption orders/tax abatement
certificates. The effective date of a rent increase exemption order/tax
abatement certificate shall be the date of the first increase in maximum
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.
Section 26-608
§ 26-608 Credit allowances; penalties for overcharge. Upon receipt of
a copy of a 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 then and 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 credited to the
monthly maximum 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
responsible therefor shall be guilty of a misdemeanor, punishable by a
fine not to exceed one thousand dollars or imprisonment not to exceed
six months, or both.
Section 26-609
§ 26-609 Application for tax benefit; credits. In order to obtain the
tax benefits to which it is entitled under this chapter, a housing
company must file with the department of finance a sworn application, in
such form as such officer may prescribe, for any period in which the
housing company has accorded an eligible head of the household an
exemption hereunder from the payment of the maximum rent. Subject to
prior or subsequent verification thereof, the department of finance
shall credit the total amount of such exemptions actually accorded to
occupants of dwelling units contained in the property against the real
property taxes next payable with respect to the property, on a
prospective basis only. The housing company shall attach to such
application copies of all rent increase exemption orders/tax abatement
certificates issued to eligible heads of the household residing in
dwelling units in such real property.
Section 26-610
§ 26-610 Excessive exemption; liens. If a subsequent audit of taxes
payable and exemptions recognized pursuant to this chapter discloses
that an exemption previously recognized on the basis of a housing
company's verified application is excessive, the amount of tax payable
by reason of such disclosure and the statutory penalty thereon, shall be
a lien upon the property as of the due date of the tax for which the
excessive exemption was claimed, unless after the housing company has
filed the tax exemption claims, the supervising agency issues a
corrected rent increase exemption order/tax abatement certificate
retroactively modifying or revoking the rent increase exemption
order/tax abatement certificate based on error in the personal or
financial data in the application or based on error in the rent
calculation not due to any willful fault of the housing company, in
which case the amount of tax payable by reason of the disclosure shall
be a lien upon the property as of the date for payment of taxes next
following certification of such corrected order by the supervising
agency.
Section 26-611
§ 26-611 Rules and regulations. The supervising agency may promulgate
such rules and regulations as may be necessary to effectively carry out
the provisions of this chapter.
Section 26-612
§ 26-612 Violations; penalties. It shall be illegal, for any person
submitting an application for a rent increase exemption pursuant to this
section, to make any false statement or willful misrepresentation of
fact, and upon conviction thereof such applicant shall be guilty of a
misdemeanor, punishable by a fine not to exceed five hundred dollars or
imprisonment not to exceed ninety days, or both.
Section 26-613
§ 26-613 Application. This chapter is enacted pursuant to the
provisions of section four hundred sixty-seven-c of the real property
tax law.
Section 26-614
§ 26-614 Certain exemption orders. Notwithstanding the provisions of
this chapter, a tenant who resides in a dwelling unit which becomes
subject to this chapter upon the sale by the city of New York of the
building in which such dwelling unit is situated may be issued a rent
increase exemption order for increases in rent which occurred during
ownership of such building by the city of New York provided that such
tenant would have been otherwise eligible to receive a rent increase
exemption order at the time of such increase but for the fact that such
tenant occupied a dwelling unit owned by the city of New York and was
therefore not subject to this chapter. Application for such rent
increase exemption orders shall be made within one year from the date
such building is sold by the city of New York or within one year of the
effective date of this provision, whichever is later.
Section 26-615
§ 26-615 Certain rent increases attributable to capital assessments
and voluntary capital contributions. Notwithstanding any inconsistent
provision of law, whenever a rent increase exemption order/tax abatement
certificate is issued to an eligible head of the household residing in a
dwelling unit owned by a housing company which is subject to the
provisions of article II, IV, V or XI of the private housing finance law
entitling such eligible person to an exemption from an increase in
maximum rent attributable to a capital assessment or voluntary capital
contribution made prior to, on or after the effective date of this
section and such person later transfers his shares in such housing
company, such person shall be required to pay over to such housing
company, or such housing company shall be entitled to deduct from the
amount to be paid to such person for the sale of such shares, all
amounts covered by such rent increase exemption order/tax abatement
certificate which are attributable to such capital assessment or
voluntary capital contribution. Such housing company shall not approve
the transfer of shares unless it has received the payment required by
the preceding sentence or made the deduction therein authorized. Such
housing company shall remit such amount to the commissioner of finance
within ninety days of the collection thereof. Payments due to the city
in accordance with this section shall be deemed a tax lien and may be
enforced in any manner authorized for the collection of delinquent taxes
on real property.
Section 26-616.
§ 26-616. Notification of termination of certain mortgage. The housing
company which owns any dwelling subject to a mortgage insured by the
federal government pursuant to section two hundred thirteen of the
national housing act, as amended, shall notify the supervising agency of
the termination of such mortgage thirty days before such termination.
Section 26-617
Section 26-617 Eligibility for persons with disabilities. 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 receiving social
security disability insurance (SSDI) or supplemental security income
(SSI) benefits under the federal social security act or disability
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
currently receiving medical assistance benefits based on determination
of disability as provided in section three hundred sixty-six of the
social services law and whose income for the current income tax year,
together with the income of all members of such individual's household,
does not exceed the maximum income at which such individual would be
eligible to receive cash supplemental security income benefits under
federal law during such tax year.