New York Rent Laws
CRRL Table of Contents

The City Rent and Rehabilitation Law [CRRL]

§ 26-406. Tax abatement for properties subject to rent exemption
orders.

a.   Tax abatement, pursuant to the provisions of section four
     hundred sixty-seven-b of the real property tax law, shall be
     granted with respect to any real property for which a rent
     exemption order is issued under subdivision n of section 26-
     405 of this chapter to the tenant of any housing
     accommodation contained therein. The rent exemption order
     shall also constitute the tax abatement certificate.

b.   The real estate tax imposed upon any real property for which
     a rent exemption order is issued, shall be reduced and
     abated by an amount equal to the difference between ( I )
     the sum of the maximum rents collectible under such orders,
     and (2) the sum of rents that would be collectible from the
     tenants of such housing accommodations if no exemption had
     been granted pursuant to subdivision n of section 26-405 of
     this chapter.

c.   For any individual housing accommodation, the tax abatement
     computed pursuant to subdivision b of this section shall be
     available with respect to a period commencing on the
     effective date of the initial rent exemption order or
     January first, nineteen hundred seventy-two, whichever is
     later, and ending on the expiration date of such order or on
     the effective date of an order terminating the rent
     exemption. Notwithstanding any other provision of law, when
     a head of a household to whom a then current, valid tax
     abatement certificate has been issued under this chapter,
     chapter four or chapter seven of this title moves his or her
     principal residence to a subsequent dwelling unit subject to
     regulation under this chapter, the head of the household may
     apply to the department of housing preservation and
     development 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 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 meaning the most recent monthly
          deduction for the applicant in the original dwelling
          unit pursuant to this section, section 26-509 or
          section 26-605 of this title; 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.

          Such certificate shall be effective as of the first day
          of the month in which the tenant applied for such
          exemption or as of the date the tenant took occupancy
          of the subsequent dwelling unit, whichever is later,
          provided both occur after the effective date of this
          law.

d.   Prior to the commencement of each fiscal year, the
     department of housing preservation and development shall
     notify the department of finance of the total amount of
     taxes to be abated under this section with respect to each
     property for which rent exemption orders were in effect for
     all or any part of the preceding calendar year. The
     commissioner of finance shall make the appropriate
     adjustment in the real estate tax payable in such fiscal
     year.

e.   Tax abatement pursuant to this section shall be in addition
     to any other tax abatement authorized by law, but shall not
     reduce the tax for any fiscal year below zero. In the event
     that the tax abatement certificate authorizes an amount of
     deduction in excess of the real estate installment, then the
     balance may be applied to any subsequent installment until
     exhausted. In such a case the owner shall submit with his or
     her real estate tax bill and remittance, a verified
     statement in such form as prescribed by the commissioner of
     finance setting forth the carry over amount and the amounts
     previously applied; provided, however, that at the request
     of the owner such balance shall be paid to the owner by the
     commissioner of finance 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 this subdivision, where the owner is a
     corporation, it shall be deemed to be in arrears when any of
     the officers, directors 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.

Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986; amended by
Local L. 1985, No. 98, eff. Dec. 31, 1985.