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Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 2
Multiple Dwellings

Section 4.07 - RPTL Section 467-c

Rent-Controlled Property Occupied by Senior Citizens
or Persons with a Disability in New York City
RPTL Section 467-c

Exemption Code(s): Not applicable (see Coding of Abatement on Assessment Roll below) Year Originally Enacted: 1975

Related Statutes: RPTL §467

SUMMARY: If allowed by local option, rent-controlled, rent-regulated, or publicly aided multiple dwellings located in New York City that are owned by certain private housing companies and occupied by senior citizens or persons with a disability are eligible for an abatement in taxes levied in an amount equal to the rent increase exemptions actually credited to eligible heads of households. Such property is liable for special assessments. The abatement is not allowed for any dwelling unit occupied by a household whose combined income exceeds $6,500 or a higher maximum amount set by local law (not to exceed $50,000).

This abatement applies even if the building is reclassified from one category to another (for example, from rent-controlled to rent-regulated).

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements: Property must be owned by a housing development fund company, a limited-dividend housing company, a limited-profit (Mitchell-Lama) housing company, or a redevelopment company organized pursuant to the Private Housing Finance Law and operated exclusively for the benefit of persons or families of low income or by a corporation owning housing that is now or was previously subject to a mortgage insured by the federal government under National Housing Act §213.

    2. Property Location Requirements: Property must be located in New York City.

    3. Property Use Requirements:
      1. Property must be occupied by senior citizens or persons with a disability. Specifically, the dwelling unit must be occupied by an eligible head of the household who is 62 years of age or older or whose spouse is 62 years of age or older, or must be occupied by a head of household who is a person with a disability. An eligible person with a disability must currently receive Social Security Disability Insurance (SSDI) benefits, Supplemental Security Income (SSI) benefits, or disability pension or disability compensation benefits provided by the United States Department of Veterans Affairs, or must be a person who previously received SSI or SSDI disability benefits and is currently receiving medical assistance benefits based on a determination of disability pursuant to Social Services Law §366. The combined income for the current income tax year of all members of a household occupying a dwelling whose head of household is a person with a qualified disability must not exceed the maximum income at which the disabled person would be eligible to receive cash SSI benefits under federal law during the tax year.

      2. The combined income of all members of the household occupying the dwelling unit must not exceed $6,500 or the maximum amount set by local option (for definition of income" see Chart ID, RPTL §467-c).

      3. In the case of a dwelling previously subject to a mortgage insured by the federal government under National Housing Act §213, the property must be occupied by the same heads of household that were entitled to possession or the use and occupancy of the property at the time of termination of the mortgage.
      4. 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 administrative 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 administrative agency informing the household that the rent increase exemption benefit has expired upon  the death  of  the  head of household, whichever is later.

      5. Where a head of house hold who has received a rent increase exemption order that has expired and who, upon renewal application for the period commencing immediately after expiration, is determined to be ineligible because of income, may submit a new application during the following calendar year and if granted, the tax abatement amount shall be calculated as if the prior rent increase exemption order never expired. No head of household may receive more than three rent increase exemption orders calculated in this way.

    4. Certification by State or Local Government: Local law may require that the head of household annually apply to the NYC Department of Housing Preservation and Development for a rent increase exemption/tax abatement certificate. Copies of the certificate must be issued by that agency to the housing company managing the dwelling unit of the eligible head of household, to the eligible head of household, and to the collecting officer responsible for collecting real property taxes in the city.

    5. Required Construction Start Date or Other Time Requirement:  None.

  2. LOCAL OPTION: Yes -- The City of New York may choose whether or not to allow the abatement, may choose the basis on which abatement will be allowed, and may set the maximum limit on tenant income. The option must be exercised through adoption of a local law or ordinance.  The governing board of a municipality may also opt to allow any head of household who has been issued this tax abatement certificate for five consecutive benefit periods, and whose income and residence have not changed since the last renewal, to file a short form renewal. The option must be exercised through adoption of a local law or ordinance.

  3. LIMITATION ON EXEMPTION:
    General
    Municipal
    Taxes
    School
    District
    Taxes
    Special
    Ad Valorem
    Levies
    Special
    Assessments
    1. Amount Yes* Yes* NA No
    abatement
    allowed
    2. Duration No
    limit
    No
    limit
    NA No
    abatement
    allowed
    3. Taxing Jurisdiction
    a. City
    ** NA NA Tax
    b. School District
    NA ** NA NA
    Ex-Exempt Tax-Taxable NA-Not Applicable

    * The type of rent exemption/tax abatement allowed is determined by local law but may not exceed, for each dwelling unit, the following amounts:

    1. Exemption based on household income (where the head of household does not receive a monthly shelter allowance pursuant to the Social Services Law): the amount by which any increase in maximum rent exceeds one-third of the combined income of all members of the household.
    2. Exemption based on shelter allowance (where the head of household does receive a monthly shelter allowance): the amount by which any increase in maximum rent exceeds the maximum shelter allowance that the head of household is entitled to receive.

    "Increase in maximum rent" generally means any increase in the maximum rent for the dwelling unit, excluding any increase attributable to increased gas or electric utility charges, dwelling space, services, or equipment. In the case of a dwelling unit currently or previously subject to a mortgage insured by the federal government under National Housing Act §213, any increase in rent attributable to capital assessments or voluntary capital contributions is also excluded from the definition of "increase in maximum rent."

    If the combined income of the household decreases by more than 20%, the household is to an increase in rent exemption and the owner of the multiple dwelling a corresponding increase in tax abatement. The resulting adjusted rent, however, must not be less than one-third of the household's income or less than the shelter allowance. For the purposes of calculating adjusted rent, a decrease in household income may not include any decrease attributable to changes in the statutory definition of income made after April 1, 1987 -- see Chart ID, Limit on Income, Note (g).

    When a head of household having a current, valid tax abatement certificate moves his principal residence to another dwelling unit in the same municipal corporation, he is entitled to a rent exemption equal to (1) the amount by which the rent for the new dwelling unit exceeds the last rent, as reduced by rent exemption, payable in the original dwelling unit, (2) the most recent amount deducted by rent exemption from the rent in the original dwelling unit, or (3) where the head of household does not receive a shelter allowance, the amount by which the rent for the new dwelling exceeds one-third of household income, whichever is least.

    ** If allowed by local option.

  4. PAYMENTS IN LIEU OF TAXES: None required.

  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: The increase in maximum or regulated rent eligible for abatement, as stated in the rent increase exemption/tax abatement certificate, is deducted from the total taxes levied.
    2. Special Ad Valorem Levies and Special Assessments: No abatement allowed.

  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:
    Code Description of Alternative Codes Possible
    Not applicable

    NOTE: Since the abatement allowed here is a reduction in actual taxes levied rather than a reduction in assessed value, no exemption code should be used and no dollar amount should be entered in the exempt value" section of the assessment roll.

  7. FILING REQUIREMENTS (Owner or Occupant of Property): None.

  8. REPORTING REQUIREMENTS (Assessor): None.

  9. SIMILAR EXEMPTIONS: See Chart IA and Chart IB.

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