Proposed Res. No. 406-A
Resolution calling upon the New York State Legislature to pass, and the Governor to sign, legislation expanding the senior citizen rent increase exemption (SCRIE) program to include dwelling units subject to an agreement that bases rent increases on New York City Rent Guidelines Board orders
By Council Members Chin, Cumbo, Eugene, Gentile, Gibson, Johnson, King, Koo, Levine, Palma, Reynoso and Koslowitz
Whereas, In 1970, New York City instituted the senior citizen rent increase exemption (SCRIE) program to shield low-income seniors from rising housing costs by offering landlords a property tax abatement in exchange for freezing the rent of eligible senior tenants; and
Whereas, Tenants are eligible for the SCRIE program if they are at least 62 years old, have a total household income that does not exceed $50,000, reside in a rent controlled or rent stabilized apartment, rent regulated hotel, or an apartment owned by a Mitchell-Lama development, and spend more than one-third of monthly income on rent; and
Whereas, The number of units protected by rent stabilization laws and enrolled in the Mitchell-Lama program in New York City are decreasing each year, making it more difficult for seniors to maintain their SCRIE benefits or to enroll in the program; and
Whereas, Some building owners have entered into agreements guaranteeing certain tenants that their rents will continue to be based upon orders of the New York City Rent Guidelines Board, which establishes the maximum permissible rent increase for renewal leases for rent stabilized units, for a specified period of time; and
Whereas, While such agreements allow tenants to avoid a sudden shift to paying market-rate rents, once a unit is deregulated, it is no longer eligible for SCRIE; and
Whereas, Building owners and landlords may also voluntarily agree to follow New York City Rent Guidelines Board orders when determining annual increases, however, tenants in such units are also currently ineligible for SCRIE; and
Whereas, Eligibility requirements for SCRIE are set forth in state law and thus can only be amended with the approval of the state legislature and the Governor; and
Whereas, Expanding the types of units that are eligible for the SCRIE program would help a greater number of seniors in New York City maintain affordable housing and remain in their homes and communities;
Whereas, Such an expansion of the SCRIE program would also allow landlords to give tenants the opportunity to become eligible for, or to remain in the SCRIE program by entering into agreements basing future rent increases on New York City Rent Guidelines Board orders now, therefore, be it
Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, legislation expanding the senior citizen rent increase exemption (SCRIE) program to include dwelling units subject to an agreement that bases rent increases on New York City Rent Guidelines Board orders.
KET 9/3/14 8:55AM
LS 2101/2014