§ 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.