N.Y. Real Property Tax Law § 467-c: Exemption for property owned by certain housing companies or sublessees of the battery park city authority and occupied by senior citizen...

§ 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. 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 (1) which is subject to the provisions

of Article II, IV, V, or XI of the private housing finance law or that

was formerly subject to the provisions of Article II of such law and

meets the conditions set forth in subdivision thirteen of this section;

or (2) 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; or (3) which is within an

applicable battery park city property.

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 their

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

their 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, twenty-nine thousand dollars beginning July first, two

thousand nine, fifty thousand dollars beginning July first, two thousand

fourteen, and seventy-five thousand dollars beginning July first, two

thousand twenty-six, as may be provided by local law.

* NB Effective until June 30, 2028

* (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

* NB Effective June 30, 2028

(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:

(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 most recent income tax year or years for

which data is sufficiently available to determine the applicant's

eligibility for exemptions pursuant to this section, 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, and seventy-five thousand dollars

beginning July first, two thousand twenty-six, as may be provided by

local law.

* NB Effective until June 30, 2028

* 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, 2028

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.

e. (1) notwithstanding any provision of law to the contrary:

(A) A tenant residing in a dwelling unit subject to the provisions of

this section shall be furnished a notice informing such tenant about the

tenant's potential eligibility for a rent increase exemption pursuant to

this section.

(B) The form and content of such notice shall be promulgated as

required by paragraph i of subdivision three of section four hundred

sixty-seven-b of this title.

(C) Such notice shall clearly and conspicuously display the

eligibility requirements for the rent increase exemption and the website

address and telephone number where tenants may obtain more information.

(2) The notice required by subparagraph one of this paragraph shall be

furnished by the following agencies or individuals at the same time as

the notice required by the occurrence of the following events:

(A) Notwithstanding clause (B) of subparagraph one of this paragraph,

the state commissioner of housing and community renewal shall provide

such notice, in a form to be determined by such commissioner, to a

tenant:

(i) Upon receipt of an application for a rent adjustment due to a

major capital improvement; and

(ii) For dwelling units subject to chapter three of title twenty-six

of the administrative code of the city of New York, upon a maximum base

rent adjustment pursuant to paragraph one of subdivision g of section

26-405 of the administrative code of the city of New York.

(B) The landlord of a dwelling unit shall provide such notice to a

tenant:

(i) With an initial lease and any renewal lease; and

(ii) Upon the annual registration of a housing accommodation as

required by section 26-517 of the administrative code of the city of New

York.

(C) A company, as such term is defined in subdivision two of section

twelve of the private housing finance law, shall provide such notice to

a tenant upon a rent increase pursuant to section thirty-one of the

private housing finance law, provided that the company shall provide

such notice to a tenant at least once annually.

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.