New York Laws
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.

(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.

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