[Adopted 8-17-2009 by L.L. No. 8-2009]
Both SCRIE and DRIE provide eligible residents age 62 and older, who live in rent-controlled or rent-stabilized apartments, an exemption to rent increases if their incomes and the proportion of their income spent on rent meet eligibility guidelines. This is available in New York City and in several municipalities in Nassau and Westchester Counties. When a landlord raises the rent, tenants with SCRIE/DRIE do not have to pay the increased rate. Instead of the increased rent, the landlord is eligible for an equivalent credit on his or her property taxes. The local municipality then reduces the property taxes owed by the landlord in the amount equivalent to the credit. The impact of this article will depend on the number of eligible citizens, as well as the proposed rent increase. Essentially, the noneligible residents of Rye will be paying for any loss in tax revenue by the City of Rye from residents who qualify for and are granted this rent increase exemption.
The City Council of the City of Rye finds it in the public interest to adopt legislation in accordance with the enabling legislation enacted by the State Legislature with respect to tax abatements of real property taxes for senior citizens and disabled persons living in rent-regulated/rent-controlled properties.
The following terms "disabled person," "dwelling unit," "head of household," "income," "income tax year," "increase in maximum rent or legal regulated rent" and "members of the household," as used in this article, shall have the definitions ascribed to them in the Real Property Tax Law § 467-b, Subdivision 1.
As used in this article, the following terms shall have the meanings indicated:
- (1) A person currently receiving social security disability insurance (SSDI) benefits, or disability pension or disability compensation benefits provided by the United States Department of Veterans Affairs; or
- (2) A person who previously received SSI or SSDI disability benefits and is currently receiving medical association benefits based on a determination of disability pursuant to Social Services Law § 366.
- DWELLING UNIT
- That part of a dwelling unit in which a head of the household resides and which is subject to the Emergency Housing Rent Control Law or to the Rent and Rehabilitation Law or to the Emergency Tenant Protection Act of 1974.
- HEAD OF HOUSEHOLD
- A person who is 62 years of age or older, or who qualifies as a person with a disability pursuant to the definition of "disabled person," as defined in this section, and is entitled to the possession or to the use or occupancy of a dwelling unit.
- Income from all sources after deduction of all income and social security taxes and includes social security and retirement benefits, supplemental security income and additional state payments, public assistance benefits, interest, dividends, net rental income, salary or 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 date of eligibility of head of the household receiving benefits hereunder, whether received by the head of the household or any other member of the household.
- INCOME TAX YEAR
- A twelve-month period for which the head of household filed a federal personal income tax return or, if no such return is filed, the calendar year.
- INCREASE IN MAXIMUM RENT OR LEGAL REGULATED RENT
- Any increase in the maximum rent or the legal regulated rent for the dwelling unit in question pursuant to the applicable rent control law or to the Emergency Tenant Protection Act of 1974, respectively, or such classes of increase thereunder as may be specified in a local law, ordinance or resolution enacted pursuant to this section, over such base period rent as specified in New York State Real Property Tax Law § 467-b, Subdivision 3, Paragraph c or d.
- MEMBERS OF THE HOUSEHOLD
- The head of 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.
All taxes of the City of Rye imposed on real property containing a dwelling unit, by 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 1/3 of the combined income of all members of the household, are hereby abated.
The tax abatement provided under this article shall not be granted if the combined income of all members of the household for the income tax year immediately preceding the making of an application under this article exceeds the amount listed in Subsection B below, provided that, when the head of household retires or becomes disabled before commencement of such year and the date of filing the application, the income of such year may be adjusted by excluding salary or earning and projecting the retirement income over the entire period of such year.
Maximum allowable income pursuant to the Real Property Tax Law § 467-b shall be $29,000.
Upon issuance of a tax abatement certificate as hereinafter provided, the amount of increase in maximum rent or legal regulated rent set forth in said certificate shall be deducted from the legal maximum rent or legal regulated rent chargeable for a dwelling unit of head of the household.
The head of the household must apply before January 29 of each year to the Office of Rent Administration, Division of Housing and Community Renewal, of the State of New York (the Office of Rent Administration), for a tax abatement certificate on a form prescribed by said office. A tax abatement certificate setting forth an amount not in excess of the increase in maximum rent or legal regulated rent for the taxable period shall be issued by said office to each head of the household who is found to be eligible under the article. Copies of such certificate shall be issued to the owner of the real property containing the dwelling unit of the head of the household and to the City Clerk of the City of Rye.
Eligibility shall be determined as of the date of receipt in the Office of Rent Administration of a properly completed form.
The portion of the increase in maximum rent or legal regulated rent for the taxable period set forth in a tax abatement certificate shall be deducted from the local taxes levied by the City of Rye on real property containing one dwelling unit of a head of the household to whom the certificate has been issued, effective the beginning of the next fiscal year after the application has been filed, provided that the application has been filed before the City's taxable status date.
Upon the vacancy of a dwelling for which an abatement certificate has been issued, the owner thereof shall remit a pro rata portion of the tax abatement to the City, and any amount due by reason of such vacancy shall be a lien upon the property on and after the date of such vacancy.
Where a tax abatement certificate has been issued to a head of the household as authorized by this article and the landlord collects the increase in the maximum or legal regulated rent for a dwelling unit occupied by such head of the household, the amount of such abatement shall be deemed a rent overcharge under the applicable rent control or rent regulation law.