Bill Text: NY A05462 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to rental assistance for low income elderly families; imposes a tax on conveyances or transfers of residential real property whose consideration is greater than two million dollars.

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Introduced) 2019-02-12 - referred to housing [A05462 Detail]

Download: New_York-2019-A05462-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5462
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 12, 2019
                                       ___________
        Introduced by M. of A. CYMBROWITZ, L. ROSENTHAL, HYNDMAN, ORTIZ, D'URSO,
          BARNWELL,  MOSLEY,  O'DONNELL,  SIMON,  COLTON, ABBATE, CARROLL, COOK,
          WILLIAMS, GOTTFRIED, DE LA ROSA, CRESPO,  BARRON,  WALKER,  DAVILA  --
          Multi-Sponsored  by -- M. of A. DenDEKKER -- read once and referred to
          the Committee on Housing
        AN ACT to amend the private housing finance  law,  in  relation  to  the
          provision of rental assistance for low income elderly families, and to
          amend  the administrative code of the city of New York, in relation to
          imposing a tax on conveyances or transfers of residential real proper-
          ty whose consideration is greater than two million dollars
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.    Section  654-b  of  the  private housing finance law is
     2  amended by adding a new subdivision 9 to read as follows:
     3    9. The subsidiary corporation shall use the taxes described in  subdi-
     4  vision  g  of  section 11-2102 of the administrative code of the city of
     5  New York exclusively for the provision of the elderly rental  assistance
     6  program as described in article sixteen-B of this chapter.
     7    §  2. The private housing finance law is amended by adding a new arti-
     8  cle 16-B to read as follows:
     9                                ARTICLE 16-B
    10                       ELDER RENTAL ASSISTANCE PROGRAM
    11  Section 930. Statement of legislative findings and purpose.
    12          931. Definitions.
    13          932. Elder rental assistance program.
    14          933. General and administrative provisions.
    15    § 930. Statement of legislative findings and purpose.  The legislature
    16  hereby finds that the city of New York is experiencing an extreme short-
    17  age of affordable housing that serves low income  senior  citizens.  For
    18  hundreds  of thousands of senior citizens living on pensions, retirement
    19  savings and other fixed incomes, the rapid rise in rents has  threatened
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05900-01-9

        A. 5462                             2
     1  their  ability  to stay in their homes and neighborhoods. More than half
     2  of seniors spend more on housing than they can afford and more than  one
     3  hundred  thousand  seniors  have  waited  for  seven years or more on an
     4  affordable housing waitlist.
     5    The  legislature further finds that citywide, almost two-thirds of all
     6  senior renter households are among the lowest income households  in  the
     7  city, earning less than fifty percent of area median income.  According-
     8  ly,  the  legislature finds that legislation should be enacted to create
     9  the elder rental assistance program, which will provide  monthly  finan-
    10  cial  assistance to rent-burdened seniors so they can live in dignity in
    11  their own homes. This program will be financed through a marginal tax on
    12  real estate transactions over two million dollars.
    13    § 931. Definitions. As used in this article:
    14    1. "Elderly family" shall mean a family, as  defined  in  24  C.F.R  §
    15  5.403,  whose  head  (including  co-head),  spouse,  or sole member is a
    16  person who is at least sixty-two years of age. It  may  include  two  or
    17  more persons who are at least sixty-two years of age living together, or
    18  one  or more persons who are at least sixty-two years of age living with
    19  one or more live-in aides, as defined in 24 C.F.R  §  5.403,  and  shall
    20  incorporate any amendments made to this definition in 24 C.F.R § 5.403.
    21    2.  "Low  income  families" shall mean those families whose incomes do
    22  not exceed eighty per centum of the  median  income  for  the  New  York
    23  metropolitan  statistical  area,  as  determined by the secretary of the
    24  federal department of housing and urban development with adjustments for
    25  smaller and larger families.
    26    § 932. Elder rental assistance program. 1. Subject to the availability
    27  of funds generated by the taxes described in subdivision  g  of  section
    28  11-2102  of the administrative code of the city of New York, the housing
    29  assistance corporation, established by section six hundred  fifty-four-b
    30  of  this  chapter,  shall  provide  rental assistance to or on behalf of
    31  low-income families whose members constitute an elderly family, who  are
    32  residents  of the city of New York, and who pay more than thirty percent
    33  of their monthly adjusted income as rent as calculated  pursuant  to  42
    34  U.S.C  §  1437a(a)(1)(A). The amount of rental assistance provided to or
    35  on behalf of each such family pursuant to this subdivision shall  be  an
    36  amount  up  to  the  difference  between  (i)  a rent established by the
    37  department of housing preservation and development on  an  annual  basis
    38  not  to  exceed  the  maximum  monthly  rent  prescribed  in  42  U.S.C.
    39  §1437f(c)(1), or such lower rent as may be required by  applicable  law,
    40  or  as  ordered  pursuant  to section four hundred sixty-seven-b or four
    41  hundred sixty-seven-c of the real property tax law,  if  applicable  and
    42  (ii)  thirty  percent  of  each such family's monthly adjusted income as
    43  calculated pursuant to 42 U.S.C. §1437a(a)(1)(A).
    44    2. To the extent a person or entity receives any such  rental  assist-
    45  ance  on  behalf  of  a particular elderly family, such person or entity
    46  shall credit such assistance against the rent of such family on a month-
    47  ly basis.
    48    3. The rental assistance provided pursuant to subdivision one of  this
    49  section shall continue upon the death or permanent departure of a member
    50  of  an elderly family who was at least sixty-two years of age, including
    51  the head of such family  (including  co-head)  or  his  or  her  spouse,
    52  provided  that such elderly family is otherwise eligible for such rental
    53  assistance and a member of such elderly family who is at least sixty-two
    54  years of age has resided in the  dwelling  unit  receiving  such  rental
    55  assistance  for  at  least one hundred eighty days immediately preceding
    56  such death or permanent departure.

        A. 5462                             3
     1    4. The rental assistance authorized by subdivision one of this section
     2  may be provided either as tenant-based or as building-based  assistance.
     3  Such assistance may be used in conjunction with any governmental program
     4  or project to develop or preserve housing.
     5    5.  A  person who has obtained a rent increase exemption order granted
     6  pursuant to section four hundred sixty-seven-b or  four  hundred  sixty-
     7  seven-c  of  the  real  property tax law may also be eligible to receive
     8  rental assistance pursuant to subdivision one of this  section  if  such
     9  person  is  a member of an elderly family that is otherwise eligible for
    10  such assistance.
    11    § 933. General and administrative provisions.  1. The housing  assist-
    12  ance corporation and the department of housing preservation and develop-
    13  ment  shall  have  the  authority to incur reasonable costs for adminis-
    14  tration of the program authorized by section nine hundred thirty-two  of
    15  this  article  provided  that  no  more  than  five percent of the taxes
    16  collected pursuant to subdivision g of section 11-2102 of  the  adminis-
    17  trative code of the city of New York shall be used for such costs.
    18    2.  The  housing  assistance corporation and the department of housing
    19  preservation and development shall have the authority to promulgate such
    20  rules as are necessary to carry  out  the  provisions  of  section  nine
    21  hundred thirty-two of this article.
    22    §  3.  Section  11-2102  of the administrative code of the city of New
    23  York is amended by adding three new subdivisions g, h and i to  read  as
    24  follows:
    25    g.  In  addition  to the taxes imposed by subdivisions a and b of this
    26  section, there is hereby imposed a tax on each deed or other  instrument
    27  or transaction conveying or transferring residential real property or an
    28  economic  interest  therein,  at  the time of delivery by a grantor to a
    29  grantee, when the consideration for such property  and  any  improvement
    30  thereon (whether or not it is included in the same deed) is greater than
    31  two  million  dollars,  or  at the time of the transfer of such economic
    32  interest by a grantor to a grantee, where  the  consideration  for  such
    33  economic  interest is greater than two million dollars. Except as other-
    34  wise provided in this section, all the provisions of this chapter relat-
    35  ing to or applicable to the administration, collection and determination
    36  of the tax imposed by subdivisions a and b of this section  shall  apply
    37  to the tax imposed by this subdivision with such modifications as may be
    38  necessary  to adapt such language to the tax so imposed. For purposes of
    39  this section, "residential real property"  shall  include  any  premises
    40  that are or may be used in whole or in part as a personal residence, and
    41  shall  include  a one, two or three-family house, an individual residen-
    42  tial condominium unit, or an individual residential  cooperative  apart-
    43  ment.  Such  tax shall be at the rate of two and one-half percent of the
    44  consideration in excess of two million dollars.
    45    h. For purposes of  this  section,  the  determination  of  whether  a
    46  conveyance or transfer shall be subject to the taxes imposed by subdivi-
    47  sions  a,  b and g of this section, and of the rate of such taxes, shall
    48  be made prior to the application of subdivision f of  this  section  and
    49  paragraph  eight  of  subdivision  b of section 11-2106 of this chapter,
    50  provided, however, that the amount  of  consideration  subject  to  such
    51  taxes shall be determined after the application of subdivision f of this
    52  section  and paragraph eight of subdivision b of section 11-2106 of this
    53  chapter.
    54    i. Any tax collected pursuant to subdivision g of this  section  shall
    55  be used exclusively for the provision of rental assistance to low-income
    56  families  whose  members  constitute  an elderly family, as described in

        A. 5462                             4
     1  subdivision nine of section six  hundred  fifty-four-b  of  the  private
     2  housing finance law. For purposes of this subdivision, "low-income fami-
     3  lies"  and  "elderly  family" shall have the same meaning as provided in
     4  section nine hundred thirty-one of the private housing finance law.
     5    §  4.    Section 11-2104 of the administrative code of the city of New
     6  York, as added by local law number 71 of the city of New  York  for  the
     7  year  1986,  subdivision 4 as amended by local law number 59 of the city
     8  of New York for the year 1989, subdivisions  5  and  6  as  amended  and
     9  subdivision 7 as added by chapter 170 of the laws of 1994, is amended to
    10  read as follows:
    11    §  11-2104 Payment.   The tax imposed [hereunder] pursuant to subdivi-
    12  sions a and b of section 11-2102 of this chapter shall be  paid  by  the
    13  grantor  to the commissioner of finance at the office of the register in
    14  the county where the deed is or would be  recorded  within  thirty  days
    15  after  the delivery of the deed by the grantor to the grantee but before
    16  the recording of such deed, or, in the case of a tax on the transfer  of
    17  an economic interest in real property, at such place as the commissioner
    18  of  finance  shall designate, within thirty days after the transfer. The
    19  grantee shall also be liable for the payment of such tax  in  the  event
    20  that  the amount of tax due is not paid by the grantor or the grantor is
    21  exempt from tax. The tax imposed pursuant to subdivision  g  of  section
    22  11-2102 of this chapter shall be paid by the grantee to the commissioner
    23  of finance at the office of the register in the county where the deed is
    24  or  would  be recorded within thirty days after the delivery of the deed
    25  by the grantor to the grantee but before the recording of such deed, or,
    26  in the case of a tax on the transfer of an  economic  interest  in  real
    27  property,  at such place as the commissioner of finance shall designate,
    28  within thirty days after the transfer. The grantor shall also be  liable
    29  for  the payment of the tax imposed pursuant to subdivision g of section
    30  11-2102 of this chapter in the event that the amount of tax due  is  not
    31  paid  by  the  grantee or the grantee is exempt from payment of the tax.
    32  All moneys received as such payments by the register during the  preced-
    33  ing  month  shall  be  transmitted to the commissioner of finance on the
    34  first day of each month or on such other day as is mutually agreeable to
    35  the commissioner of finance and the register.
    36    a. From the moneys so received by him or her pursuant to  subdivisions
    37  a  and b of section 11-2102 of this chapter, the commissioner of finance
    38  shall set said in a special account:
    39    (1) the total amount of taxes imposed pursuant to  the  provisions  of
    40  paragraph  three  of  subdivision  a  of section 11-2102 of this chapter
    41  including any interest or penalties thereon;
    42    (2) fifty percent of the total amount of taxes imposed pursuant to the
    43  provisions of paragraph four of subdivision a of section 11-2102 of this
    44  chapter, including fifty percent of any interest or  penalties  thereon,
    45  provided,  however, that where such tax is measured by the consideration
    46  for a conveyance without deduction for the amount  of  any  mortgage  or
    47  other lien or encumbrance on the real property or interest therein which
    48  existed  before  the  delivery of the deed and remains thereon after the
    49  delivery of the deed, the entire amount of tax imposed at  the  rate  of
    50  one  percent  on  the  portion  of  the consideration ascribable to such
    51  nondeductible mortgage, lien or other encumbrance, including any  inter-
    52  est or penalties thereon, and fifty percent of the tax on the balance of
    53  the  consideration, including fifty percent of any interest or penalties
    54  thereon, shall be set aside in such special account;
    55    (3) fifty percent of the total amount of taxes imposed pursuant to the
    56  provisions of subparagraph (iii) of paragraph seven of subdivision a  of

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     1  section 11-2102 of this chapter, including fifty percent of any interest
     2  or penalties thereon;
     3    (4) fifty percent of the total amount of taxes imposed pursuant to the
     4  provisions  of  paragraph  eight  of subdivision a of section 11-2102 of
     5  this chapter, including fifty percent of any interest or penalties ther-
     6  eon;
     7    (5) fifty percent of the total amount of taxes imposed at the rate  of
     8  two  percent pursuant to the provisions of clause (ii) of subparagraph A
     9  of paragraph one of subdivision b of section  11-2102  of  this  chapter
    10  including fifty percent of any interest or penalties thereon;
    11    (6)  with  respect  to any conveyance of real property, transfer of an
    12  economic interest therein, or any grant, assignment or  surrender  of  a
    13  leasehold  interest  in  real  property,  made on or after August first,
    14  nineteen hundred eighty-nine and taxable under  this  chapter,  in  each
    15  instance  where  the  tax rate is in excess of two percent, a portion of
    16  the tax received equal to one percent of the  consideration  subject  to
    17  the tax plus any interest or penalty attributable to such portion of the
    18  tax; and
    19    (7)  notwithstanding  anything  in [subdivision] paragraph six of this
    20  subdivision to the contrary, in each instance where the tax rate imposed
    21  pursuant to subdivision e of section  11-2102  of  this  chapter  is  in
    22  excess  of  one percent, a portion of the tax received equal to one-half
    23  of one percent of the total  consideration  for  the  real  property  or
    24  economic  interest therein conveyed or transferred, plus any interest or
    25  penalty attributable to such portion of the tax.
    26    Moneys in such account shall be used for payment by such  commissioner
    27  to the state comptroller for deposit in the urban mass transit operating
    28  assistance  account of the mass transportation operating assistance fund
    29  of any amount of insufficiency certified by the state comptroller pursu-
    30  ant to the provisions of  subdivision  six  of  section  [eight-eight-a]
    31  eighty-eight-a  of  the  state finance law, and, on the fifteenth day of
    32  each month, the commissioner of finance shall transmit all funds in such
    33  account on the last day  of  the  preceding  month,  except  the  amount
    34  required for the payment of any amount of insufficiency certified by the
    35  state  comptroller  and  such  amount  as  he or she deems necessary for
    36  refunds and such other amounts necessary to finance the  New  York  City
    37  transportation  disabled  committee  and  the  New York City paratransit
    38  system as established by section fifteen-b of  the  transportation  law,
    39  provided, however, that such amounts shall not exceed six percent of the
    40  total  funds  in  the  account  but in no event be less than one hundred
    41  seventy-five thousand dollars beginning April  first,  nineteen  hundred
    42  eighty-six,  and  further  that  beginning  November fifteenth, nineteen
    43  hundred eighty-four and during the entire period prior to  operation  of
    44  such  system,  the  total of such amounts shall not exceed three hundred
    45  seventy-five thousand dollars for the administrative  expenses  of  such
    46  committee  and  fifty  thousand  dollars  for the expenses of the agency
    47  designated pursuant to paragraph b of subdivision five of such  section,
    48  and  other  amounts  necessary  to  finance  the  operating needs of the
    49  private bus companies franchised by the city of New York and eligible to
    50  receive state operating  assistance  under  section  eighteen-b  of  the
    51  transportation  law,  provided,  however,  that  such  amounts shall not
    52  exceed four percent of the total funds in the account, to the  New  York
    53  city transit authority for mass transit within the city.
    54    b.  The  moneys  received  by  the commissioner of finance pursuant to
    55  subdivision g of section 11-2102 of this chapter shall be held  for  the
    56  benefit  of  the  housing  assistance  corporation  for the provision of

        A. 5462                             6
     1  rental assistance to low-income families  whose  members  constitute  an
     2  elderly  family  in  accordance  with subdivision i of such section, and
     3  paid to the housing assistance corporation, in the same fiscal  year  or
     4  as  soon  as  practicable thereafter, for the purposes described in such
     5  subdivision i. Such moneys shall be  used  to  supplement,  rather  than
     6  supplant,  local  funds  that  such  city  would  have  expended for the
     7  provision of rental assistance  to  low-income  families  whose  members
     8  constitute an elderly family. For purposes of this subdivision, "low-in-
     9  come  families"  and  "elderly  family"  shall  have the same meaning as
    10  provided in section nine  hundred  thirty-one  of  the  private  housing
    11  finance law.
    12    §  5.  This  act shall take effect on the ninetieth day after it shall
    13  have become a law.
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