2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 467-C - Exemption for Property Owned by Certain Housing Companies or Sublessees of the Battery Park City Authority and Occupied by Senior Citizens or Persons With Disabilities.

§  467-c. Exemption for property owned by certain housing companies or
sublessees of the battery park city authority  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 (1) which is subject to the provisions
of Article II, IV, V, or XI of the private housing finance law  or  that
was  formerly  subject  to  the provisions of Article II of such law and
meets the conditions set forth in subdivision thirteen of this  section;
or  (2)  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;  or  (3)  which  is  within  an
applicable battery park city property.
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, 2024
* (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, 2024
(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:
(1)  the  "adjusted  gross  income" for federal income tax purposes as
reported on the applicant's federal or state income tax return  for  the
applicable  income  tax  year,  subject  to any subsequent amendments or
revisions, plus any  social  security  benefits  not  included  in  such
federal adjusted gross income; provided that if no such return was filed
for  the  applicable  income  tax  year, the applicant's income shall be
determined based on the amounts that would have so been reported if such
a return had been filed; and provided  further,  that  when  determining
income  for  purposes of this section, the following conditions shall be
applicable:
(i) the governing body of a  municipal  corporation,  after  a  public
hearing,  may  adopt a local law, ordinance or resolution providing that
any social security benefits that were not included in  the  applicant's
adjusted gross income shall not be considered income;
(ii)  distributions  received from an individual retirement account or
individual retirement annuity that  were  included  in  the  applicant's
federal  adjusted gross income shall not be considered income unless the
governing body of a  municipal  corporation,  after  a  public  hearing,
adopts a local law, ordinance or resolution providing otherwise;
(iii)  the  applicant's  income  shall  be  offset  by all medical and
prescription drug expenses actually paid that  were  not  reimbursed  or
paid for by insurance, if the governing body of a municipal corporation,
after  a  public  hearing,  adopts  a local law, ordinance or resolution
providing therefor;
(iv) any tax-exempt interest or dividends that were excluded from  the
applicant's  federal  adjusted  gross income shall be considered income;
and
(v) any losses that were applied to  reduce  the  applicant's  federal
adjusted gross income shall be subject to the following limitations:
(A)  the net amount of loss reported on federal Schedule C, D, E, or F
shall not exceed three thousand dollars per schedule,
(B) the net amount of any other separate category of  loss  shall  not
exceed three thousand dollars, and
(C)  the  aggregate  amount  of  all  losses  shall not exceed fifteen
thousand dollars; and
(vi) 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; or
(2) notwithstanding subparagraph one of this paragraph, in a city with
a population of one million or more persons:
(i)  the  sum  of  the  adjusted gross incomes reported on the federal
income tax returns of  the  applicant  and  all  other  members  of  the
applicant's  household for the income tax year immediately preceding the
date of application, subject to any subsequent amendments or  revisions,
less  any  distributions,  to  the extent included in each such adjusted
gross  income,  received  from  an  individual  retirement  account   or
retirement annuity; provided that if no such income tax return was filed
by any member of the applicant's household for such income tax year, the
income of such applicant or member of the applicant's household shall be
determined as if such a return had been filed;
(ii)  provided,  however,  that income may be calculated as the 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  federal  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 following conditions are met:
(A)  a  rent  increase  exemption  order  was  granted  to the head of
household prior to July first, two thousand twenty-four;
(B) such rent increase exemption order is either  renewed  after  each
benefit  period  or granted pursuant to subparagraph four of paragraph a
of subdivision three of this section to account for a temporary increase
in income;
(C) income calculated as described in this clause would yield a  lower
amount  than  income  calculated  as  described  in  clause  (i) of this
subparagraph; and
(iii) provided, further, that a change in the  method  of  calculating
income  pursuant  to  this  subparagraph shall not affect eligibility to
file a short-form renewal application in  accordance  with  subparagraph
two of paragraph a of subdivision four of this section.
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;  or  the   rent
established for an applicable battery park city property.
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, 2024
* 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, 2024
n. "Applicable battery park city property" means a  property  that  is
(1) subject to a lease or sublease with the battery park city authority;

and  (2)  has  one  or  more  residential  units  which  are  subject to
limitations on rent increases pursuant to:
(i)  a  contractual  agreement  with  the battery park city authority,
which may be within the lease or sublease between the battery park  city
authority and the lessee or sublessee; or
(ii)  a  regulatory  agreement  with  the  commissioner or supervising
agency.
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 and that real property of an applicable
battery park city property shall be exempt  from  payments  in  lieu  of
taxes  (PILOT),  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 and which is  located
within  the  same municipal corporation, 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, or which  is
an  applicable battery park city property, 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  or  the landlord of the
dwelling unit within an applicable battery park city  property,  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 or landlord 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 or the landlord 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 benefits to which it is  entitled  under  this  section,  a  housing
company  or  landlord  of  an applicable battery park city property must
file with the collecting officer charged with  the  duty  of  collecting
taxes  of the municipality or PILOT a sworn application, in such form as
such officer may prescribe,  for  any  quarterly  period  in  which  the
housing  company  or  landlord  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 or PILOT otherwise payable with  respect
to  the  property.  The housing company or landlord 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 or applicable battery park city
property containing one or more dwelling units shall be  totally  exempt
from  local  and  municipal  real property taxes or PILOT 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  or  landlord  in  an amount not
exceeding the amount necessary  to  reimburse  the  housing  company  or
landlord  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.
Notwithstanding the foregoing, the battery  park  city  authority  shall
have no obligation whatsoever to reimburse a landlord.
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.
13. In a city with a population of one million or more, any such local
law, ordinance or resolution may provide for a rent  increase  exemption
order  and  the abatement of taxes of such city imposed on real property
formerly subject to the provisions of Article II of the private  housing
finance  law  prior  to the effective date of the chapter of the laws of
two thousand twenty-two that added this subdivision containing  dwelling
units that are subject to a regulatory agreement in which the qualifying
head  of  household or their qualifying successor in interest: (a) has a
signed agreement with the landlord to limit increases  in  maximum  rent
for  the  lifetime  of  the tenancy to an amount established by the rent
guidelines board in its  annual  guidelines  for  rent  adjustments  for
housing accommodations subject to the emergency tenant protection act of
nineteen seventy-four or the administrative code of the city of New York
or  to another amount provided for in such regulatory agreement; and (b)
is otherwise eligible for  such  tax  abatement.  Any  such  local  law,
ordinance,  or  resolution may provide that the effective date of a rent
increase  exemption  order/tax  abatement  certificate  shall   be   May
thirty-first,  two  thousand twenty-two for any applicant found eligible
on or before March thirty-first, two thousand twenty-four.