NY Real Prop Tax L § 467-C (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 467-C - Exemption for Property Owned by Certain Housing Companies and Occupied by Senior Citizens or Persons With Disabilities.

§ 467-c. Exemption for property owned by certain housing companies and occupied   by   senior   citizens   or  persons  with  disabilities.  1. Definitions. As used in this section:   a. "Commissioner" means the commissioner  of  the  state  division  of housing and community renewal.   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 * (1) a person or his or her spouse  who  is  sixty-two  years of age or older and is entitled to the possession or to the use and occupancy of  a  dwelling  unit,  provided, however,  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,  does  not  exceed  six thousand five hundred dollars for the taxable period, or such other  sum  not  less  than  sixty-five  hundred dollars nor 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,  twenty-nine thousand dollars beginning July first, two thousand nine, and fifty thousand  dollars  beginning  July  first,  two thousand fourteen, as may be provided by local law; or   * NB Effective until June 30, 2022   * (1)  a  person or his or her spouse who is sixty-two years of age or older and is entitled to the possession or to the use and occupancy of a dwelling unit, provided, however, 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,  does  not  exceed  six thousand  five hundred dollars for the taxable period, or such other sum not less than sixty-five  hundred  dollars  nor  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 thousand dollars beginning July first, two thousand nine, as may be provided by local law; or   * NB Effective June 30, 2022 (2) a person with a disability as defined in this subdivision.   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, nor  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  the  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 section,  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, or an exemption from the maximum rent or legal regulated rent as specified in paragraph  b  of  subdivision  three  of  this  section, 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 such approved rent 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 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.   l.  "Taxable  period"  means the income tax year immediately preceding the date of making application for a rent increase  exemption  order/tax abatement certificate.   * m.  "Person  with a disability" means an individual who 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  those  previously eligible  by  virtue  of  receiving  disability   benefits   under   the supplemental  security  income program or the social security disability program and 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 fifty thousand dollars beginning July first, two thousand fourteen, as may be provided by local law.   * NB Effective until June 30, 2022   * m. "Person with a disability" means an individual who  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  those  previously eligible   by   virtue   of  receiving  disability  benefits  under  the supplemental security income program or the social  security  disability program  and  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.   * NB Effective June 30, 2022   2. The governing body of any city having a population of  one  million or  more,  acting  through its local legislative body or other governing agency is hereby authorized and empowered to adopt and amend local  laws or ordinances providing that 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  section.  Any  such  exemption  shall  be in addition to any other exemption or abatement of taxes authorized by law.   3. Any such local law or ordinance shall provide that: a. an  eligible head  of  the  household  may obtain a rent increase exemption order/tax abatement certificate entitling him 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 person's 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.  (3) provided, however, that in a city of a population of  one  million or  more,  where  the  eligible head of the household has been granted a rent increase exemption order as a person with a disability  as  defined in  paragraph  m of subdivision one of this section that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen, the amount determined by  subparagraph  one of  this  paragraph  shall  be an amount not in excess of the difference between the maximum rent and the amount  specified  in  such  order,  as adjusted by any other provision of this section.  (4)  (a)  Provided,  however,  that in a city with a population of one million or more, a head  of  the  household  who  has  received  a  rent increase  exemption  order  that  has  expired  and  who,  upon  renewal application for the period commencing immediately after such expiration, is determined to be ineligible  for  a  rent  increase  exemption  order because  the combined income of all members of the household exceeds the maximum amount allowed by this section or  the  maximum  rent  or  legal regulated  rent  does not exceed one-third of the combined income of all members of the household,  may  submit  a  new  application  during  the following  calendar  year,  and if such head of the household receives a rent increase exemption order that commences during such calendar  year, the  tax  abatement amount for such order shall be calculated as if such prior rent increase exemption order had not  expired.  However,  no  tax abatement benefits may be provided for the period of ineligibility.  (b) No head of the household may receive more than three rent increase exemption  orders calculated as if a prior rent increase exemption order had not expired, as described in clause (a) of this subparagraph.   b. notwithstanding any other provision of law,  when  a  head  of  the household  to  whom  a then current, valid tax abatement certificate has been issued moves his principal residence from one dwelling unit subject to this section, to the local emergency housing rent control law  or  to the  emergency  tenant  protection  act  of  nineteen  seventy-four to a subsequent dwelling unit which is subject to the provisions of  articles II,  IV,  V  or XI of the private housing finance law 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, and which is located within the same  municipal corporation,  the  head  of  the household may apply for a tax abatement certificate relating to the subsequent dwelling  unit,  subject  to  any terms  and  conditions  imposed  by  reason  of  any  fund created under subdivision eight of this section, and such certificate may provide that the head of the household shall be exempt from paying  that  portion  of the  maximum  rent  or  legal regulated 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 so reduced, which the head of the household was required to actually pay in the original dwelling unit;  (2)  the most recent amount so deducted from the maximum rent or legal regulated rent in the original dwelling unit; or  (3) where the head  of  the  household  does  not  receive  a  monthly allowance for shelter 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, except that this subparagraph shall not apply to  a  head of the household who has been granted a rent increase exemption order as a  person with a disability as defined in paragraph m of subdivision one of this section that is in effect as  of  January  first,  two  thousand fifteen or takes effect on or before July first, two thousand fifteen.   c.  Notwithstanding  any  other provision of law, when 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, is later reclassified by order of the  commissioner,  the  supervising  agency  or  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, the rent stabilization law of nineteen hundred sixty-nine of  the  city  of  New  York  or  the emergency  tenant  protection  act  of  nineteen seventy-four, or when a dwelling unit subject to such rent stabilization law or  such  emergency tenant  protection act, or subject to the emergency housing rent control law or to the rent and rehabilitation  law  of  the  city  of  New  York enacted  pursuant  to  the  local emergency housing rent control act, is reclassified by order of the commissioner or the supervising  agency  or by  operation  of  law  to  a  dwelling  unit  subject  to  any  of  the aforementioned provisions 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 at the time of the reclassification shall  be  issued  a rent  increase  exemption  order  under  applicable  law  continuing the previous exemption notwithstanding the reclassification of the  dwelling unit.   d. notwithstanding any other provision of law to the contrary, where a eligible  head  of  the  household  holds a current, valid rent increase exemption order/tax abatement certificate and, after the effective  date of  this paragraph, 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 re-establish 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 unless such head of the household has been granted a rent  increase  exemption  order  as  a person with a disability as defined in paragraph m of subdivision one of  this section that is in effect as of January first, two thousand fifteen or  takes  effect on or before July first, two thousand fifteen; 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  paragraph, 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 this section made on or after April first,  nineteen  hundred  eighty-seven. For purposes of this paragraph, "adjusted rent" shall mean maximum rent less the amount set forth  in  a rent increase exemption order/tax abatement certificate.   4.  a.  (1)  Any  such  local  law  or  ordinance may provide that 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.  (2) Upon the adoption of a local law, ordinance, or resolution by  the governing  board  of a municipality, any head of household that has been issued a tax abatement certificate pursuant to  this  section  for  five consecutive  benefit  periods,  and  whose income and residence have not changed since their last renewal application, shall be eligible to  file a  short  form  renewal. Such statement shall be on a form prescribed by the appropriate rent control agency or administrative agency  and  shall include  the  following: (i) a sworn statement certifying that such head of household continues to be eligible to receive  such  certificate  and that   their   income  and  residence  have  not  changed;  and  (ii)  a certification to be signed by the applicant stating that all information contained in their statement is true and correct  to  the  best  of  the applicant's  knowledge  and belief and stating that they understand that the willful making of any false statement of material fact therein shall subject them to the provisions of law relevant to the making and  filing of  false  instruments  and  loss  of their benefit, and that subsequent reapplication shall be as a new applicant.   b. 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 collecting  officer charged with the duty of collecting the taxes of the municipality. The appropriate supervising agency shall send a notice  of required  renewal  to  each  head  of  household  currently receiving an exemption under this section via United States Postal Service  to  their primary  residence  no  less  than  thirty days prior to the application renewal date.   4-a. Notwithstanding any other provision of law to the contrary, where a head of household who holds a current, valid tax abatement certificate dies  or  permanently  leaves  the  household  as  specified  in   rules promulgated  by  the  supervising  agency,  a  surviving  member  of the household who is eligible under this section may apply to  transfer  the rent  increase  exemption  from  the  head  of household who has died or permanently  left  the  household  into  their  name  and  continue  the exemption  as the new head of household. The option to transfer the rent increase exemption shall be available for a period of six  months  after the head of household dies or permanently leaves the household or ninety days  after the date of notice from the supervising agency informing the household that the rent increase exemption benefit has expired upon  the death  of  the  head of household, whichever is later. Such notice shall include an explanation of the process to transfer the  exemption  to  an  eligible  surviving  household  member  and  the  time  period to do so, accompanied by the form necessary to transfer the exemption.   5. Any such local law or ordinance may provide that 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.   6.  Any such local law or ordinance may provide that upon receipt of a copy of the 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 or 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 and any agent 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.   7. Any such local law or ordinance may provide that in order to obtain the tax benefits to which it is entitled under this section,  a  housing company  must  file with the collecting officer charged with the duty of collecting taxes of the municipality a sworn application, in  such  form as  such  officer  may  prescribe, for any quarterly 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 collecting  officer  shall credit  the  total  amount  of  such  exemptions  actually  accorded  to occupants of dwelling units contained in the property against  the  real property  taxes  otherwise  payable  with  respect  to the property. 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.   8. Any such local law or ordinance may provide that 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, such  municipality 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 the maximum rent accorded pursuant to this section to eligible heads of  the household residing in dwelling units in such real property.   A municipality may create and establish a fund in order to provide for the  payments made in accordance with contracts entered into pursuant to this subdivision. There may be paid into such fund (1) all of the rental surcharges  collected  by  the  municipality  from   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 by the municipality for the purpose of such fund.   9. The supervising agency may promulgate such rules and regulations as may be necessary to effectively carry out the provisions of this act.   10.  Any  such  local  law  or  ordinance may provide that 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.   11.  Notwithstanding  any  other  provision  of  law and to the extent applicable to the provisions of this section,  any  renewal  application being  made  by  the tenant pursuant to this section, any rent exemption order then in effect with respect to such tenant shall be deemed renewed until such time as the city rent agency shall have found such tenant  to be  either  eligible  or ineligible for a rent 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 exemption order, such tenant shall be liable to his landlord for the  difference  between  the amounts  he  has  paid under the provisions of the automatically renewed order and the amounts which he would have been required to  pay  in  the absence  of such order. Any rent exemption order issued pursuant to this section shall include provisions giving notice as  to  the  contents  of this  subdivision  relating  to  automatic  renewals  of  rent exemption orders.   12. Notwithstanding any inconsistent provision of law, any such  local law  or  ordinance  may  provide that 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 subdivision 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 municipality within ninety days of the collection thereof. Payments due to the  municipality in  accordance  with this subdivision shall be deemed a tax lien and may be enforced in any manner authorized for the  collection  of  delinquent taxes on real property.