[Adopted 8-17-2009 by L.L. No. 8-2009]
A.Â
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.
B.Â
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.
A.Â
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.
B.Â
DISABLED PERSON
(1)Â
(2)Â
DWELLING UNIT
HEAD OF HOUSEHOLD
INCOME
INCOME TAX YEAR
INCREASE IN MAXIMUM RENT OR LEGAL REGULATED RENT
MEMBERS OF THE HOUSEHOLD
As used in this article, the following terms shall have the meanings
indicated:
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
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.
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.
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.
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,[3] 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.
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.
A.Â
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.
B.Â
Maximum allowable income pursuant to the Real Property Tax Law § 467-b
shall be $29,000.
C.Â
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.
A.Â
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.
B.Â
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.
