Section 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, and twenty-nine thousand dollars beginning  July  first,
  two thousand nine, as may be provided by local law; or (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 the maximum income at which such
  individual  would  be  eligible  to  receive  cash supplemental security
  income benefits under federal law during such tax year.
    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.
    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.
    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; 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. 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. 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.
    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.