Section 467-B. Tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities

1.
  Definitions. As used in this section:
    a.  "Dwelling  unit"  means that part of a dwelling in which a head of
  the household resides and which  is  subject  to  either  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  law,  or  to  the  emergency  tenant protection act of nineteen
  seventy-four;
    b. "Head of the household" means a person (i) who is  sixty-two  years
  of  age  or  older,  or (ii) who qualifies as a person with a disability
  pursuant to subdivision five of this section, and  is  entitled  to  the
  possession or to the use or occupancy of a dwelling unit;
    c.  "Income"  means  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;
    d. "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;
    e.  "Increase  in  maximum  rent  or  legal  regulated rent" means 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  nineteen  seventy-four,
  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 shall be provided therein or an
  exemption from the maximum rent or legal regulated rent as specified  in
  paragraph c or d of subdivision three of this section;
    f.  "Members of the household" means the head of the 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.
    2.  The  governing  body  of  any  municipal  corporation  is   hereby
  authorized  and  empowered to adopt, after public hearing, in accordance
  with  the  provisions  of  this  section,  a  local  law,  ordinance  or
  resolution  providing  for  the  abatement  of  taxes  of said municipal
  corporation imposed on real  property  containing  a  dwelling  unit  as
  defined  herein  by  one of the following amounts: (a) where the head of
  the household does not receive a monthly allowance for shelter  pursuant
  to  the  social services law, 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 one-third of the combined
  income of all members of the household; or
    (b)  where  the head of the household receives a monthly allowance for
  shelter pursuant to the social services law, an amount not in excess  of
  that  portion  of  any  increase in maximum rent or legal regulated rent

  which is not covered by the maximum allowance  for  shelter  which  such
  person is entitled to receive pursuant to the social services law.
    3. Any such local law, ordinance or resolution shall provide that:
    a.  for  a  dwelling  unit where the head of the household is a person
  sixty-two years of age or older, no tax abatement shall  be  granted  if
  the  combined  income of all members of the household for the income tax
  year immediately preceding the date of making application  exceeds  four
  thousand  dollars,  or such other sum not 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  the local law, ordinance or resolution adopted pursuant to
  this section, provided that when  the  head  of  the  household  retires
  before  the  commencement of such income tax year and the date of filing
  the application, the income for such year may be adjusted  by  excluding
  salary  or earnings and projecting his or her retirement income over the
  entire period of such year.
    b. for a dwelling unit where the head of the household qualifies as  a
  person  with  a disability pursuant to subdivision five of this section,
  no tax abatement shall be granted if the combined income for all members
  of the household for the current income tax  year  exceeds  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.
    c.  upon  issuance  of  a  tax  abatement  certificate  as provided in
  subdivision  four  of  this  section,  the  amount  set  forth  in  said
  certificate  shall  be  deducted  from  the  legal maximum rent or legal
  regulated rent  chargeable  for  a  dwelling  unit  of  a  head  of  the
  household.
    d.  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 to a
  subsequent dwelling unit located within the same municipal  corporation,
  the  head  of  the  household  may apply 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 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 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 pursuant to this section 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.
    e. 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 the provisions of articles II, IV, V or XI  of  the  private  housing
  finance  law  to  a subsequent dwelling unit subject to either the local
  emergency housing rent control law or to the emergency tenant protection
  act of nineteen seventy-four 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,   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.
    f. notwithstanding any other provision of law, when  a  dwelling  unit
  subject  to  regulation  under the New York city rent and rehabilitation
  law  or  the  rent  stabilization  law  of  the  city  of  New  York  is
  reclassified  by order of the city rent agency subject to the other law,
  a head of the household who held a valid senior citizen or person with a
  disability  rent  increase  exemption  order  at  the   time   of   such
  reclassification may be issued a rent increase exemption order under the
  appropriate law continuing the exemption he would have been eligible and
  entitled to, notwithstanding such reclassification of such dwelling unit
  and  the  tenant  shall  be  exempt from paying the rent increase to the
  extent to which he was otherwise eligible and entitled to be exempted at
  the time of the increase but for the fact of  such  reclassification  of
  the  dwelling  unit  including  exemption from the rent increase granted
  pursuant to subparagraph (m)  of  paragraph  one  of  subdivision  g  of
  section 26-405 of the administrative code of the city of New York to the
  extent  that  it is not predicated upon any improvement or addition in a
  category as provided for in subparagraph (d), (e), (f), (g), (h) or  (i)
  of such paragraph.
    (1) A head of the household who is otherwise eligible for exemption at
  the  time of the rent increase and resides in a dwelling unit subject to
  regulation under the emergency housing rent  control  law  or  the  rent
  stabilization  law  of  the city of New York which has been reclassified
  under the other law, may be issued a rent increase exemption order under
  the appropriate law exempting the tenant from paying the  rent  increase
  to  the  extent  to which he would have been eligible and entitled to be
  exempted but for the fact of  reclassification  of  the  dwelling  units
  including   exemption   from  the  rent  increase  granted  pursuant  to
  subparagraph (m) of paragraph one of subdivision g of section 26-405  of
  the administrative code of the city of New York to the extent that it is
  not  predicated  upon  any  improvement  or  addition  in  a category as
  provided for in subparagraph (d), (e), (f), (g),  (h)  or  (i)  of  such
  paragraph.
    (2)  Application  for  an  exemption order shall be made within ninety
  days from the date of the rent increase and reclassification  or  within
  ninety days of the effective date of this paragraph, whichever is later,
  and  the  rent  increase  exemption  order  shall  take effect as of the
  effective date of the rent increase and reclassification  including  any
  retroactive increments pursuant to such rent increase.
    g. notwithstanding any other provision of law to the contrary, where a
  head  of  the household holds a current, valid tax abatement certificate
  and, after the effective date of this paragraph, there  is  a  permanent
  decrease  in  the  combined income of all members of the household in an
  amount which exceeds twenty percent of such  income  as  represented  in
  such  head  of  the  household's  last  approved  application  for a tax

  abatement certificate or for renewal thereof, such 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 head of the household's last application  for  a  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 a head of the household who does not receive a monthly allowance
  for  shelter pursuant to the social services law, less than one-third of
  the combined income of all members of the household; or (ii) in the case
  of a 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 head of the household is entitled to receive pursuant
  to  such law. For purposes of this paragraph, a decrease in the combined
  income of all members of the household shall not include any decrease in
  such income resulting from the manner  in  which  income  is  calculated
  pursuant  to  any  amendment  to  paragraph c 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  or
  legal  regulated  rent  less  the  amount  set  forth in a tax abatement
  certificate.
    h. (1) notwithstanding any other provision  of  law,  a  head  of  the
  household  who  is otherwise eligible for a senior citizen rent increase
  exemption order shall be issued an order applicable to a second dwelling
  unit when such person occupies two  contiguous  and  connected  dwelling
  units,  both  of  which  are eligible for a senior citizen rent increase
  exemption order, as a combined residence and such  person  has  occupied
  and  paid  rent  for both units for at least two years. Only one head of
  household  shall  be  issued  an  exemption  order  for  each   eligible
  contiguous and connected dwelling units pursuant to this paragraph.
    (2)  if  the  appropriate rent control agency or administrative agency
  determines that there was a  material  misstatement  in  an  application
  filed  by  a head of household for a second senior citizen rent increase
  exemption order pursuant to this paragraph and  that  such  misstatement
  provided  the basis for the granting of such second exemption order, the
  rent control agency or administrative agency shall proceed to  impose  a
  penalty  on  the  applicant  of  one  thousand  dollars  in  addition to
  recovering the amount of any prior exemption  erroneously  granted.  For
  purposes of this paragraph, "contiguous" shall mean adjacent or next to.
    4.  The  head  of  the  household  must  apply  every two years to the
  appropriate rent control agency  or  administrative  agency  for  a  tax
  abatement  certificate  on  a  form  prescribed  by  said  agency. 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
  or such other amount as shall be determined under subdivision  three  of
  this  section  shall  be  issued  by  said  agency  to  each head of the
  household who is found to be eligible under this section  on  or  before
  the  last  date  prescribed  by  law for the payment of the taxes or the
  first installment thereof of any municipal corporation which has granted
  an abatement of taxes. 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 collecting officer charged with the duty of
  collecting the taxes of each municipal corporation which has granted the
  abatement of taxes authorized by this section.
    5. Eligibility. a. To qualify as a person with a  disability  for  the
  purposes  of this section, an individual shall submit to the appropriate
  rent control agency or administrative agency proof  sufficient  to  such
  agency  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 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.
    b.  Eligibility  shall  be  determined  as of a date prescribed by the
  appropriate rent control agency or administrative agency pursuant to the
  local law, ordinance or resolution and  such  local  law,  ordinance  or
  resolution may provide for a pro rata refund of taxes paid prior to such
  eligibility  date  or  a credit therefor against the next succeeding tax
  periods.
    6. The amount set forth  in  a  tax  abatement  certificate  shall  be
  deducted  from  the  total taxes levied by or on behalf of the municipal
  corporation which has granted such abatement on real property containing
  the dwelling unit of a head of the household to whom the certificate has
  been issued. In the event that  both  a  town  and  a  village  included
  therein  grant  such abatement, such deduction for properties located in
  the village shall be made first from taxes levied by or on behalf of the
  village and any excess thereof shall be deducted from town taxes.
    7. Upon the  vacancy  of  a  dwelling  unit  for  which  an  abatement
  certificate  has  been  issued, the owner thereof shall remit a pro rata
  portion of the tax abatement to the collecting officer of the  municipal
  corporation which granted such abatement and any amount due by reason of
  such  vacancy shall be a lien upon the property on and after the date of
  such vacancy.
    8. Where a tax abatement certificate has been issued to a head of  the
  household  as authorized by a local law, ordinance or resolution adopted
  pursuant to this section  and  the  landlord  collects  or  attempts  to
  collect  all  or  part  of  the  amount  covered  by  such tax abatement
  certificate, the amount  of  such  abatement  shall  be  deemed  a  rent
  overcharge under the applicable rent control or rent regulation law.
    9.  In a city with a population of one million or more, any such local
  law, ordinance or resolution may provide  that  in  the  event  the  tax
  abatement certificate authorizes an amount of deduction in excess of the
  real  estate  quarterly  installment, then the balance may be applied to
  any subsequent  installment  until  exhausted,  provided  that,  at  the
  request of the owner, such balance shall be paid to the owner in lieu of
  being  applied  to any subsequent installment, except where the owner is
  in arrears in the payment of real estate taxes on any property. For  the
  purposes  of  such  provision  of  any  such  local  law,  ordinance  or
  resolution, where the owner is a corporation, it shall be deemed  to  be
  in  arrears when any officer, director or any person holding an interest
  in more than ten percent of the issued and  outstanding  stock  of  such
  corporation  is  in  arrears  in the payment of real estate taxes on any
  property; where title is held by a nominee, the owner shall be deemed to
  be in arrears when the person for whose benefit such title is held is in
  arrears in the payment of real estate taxes on any property.
    * NB Effective until June 16, 2011