Bill Text: NY S04402 | 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 2-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S04402 Detail]
Download: New_York-2019-S04402-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4402 2019-2020 Regular Sessions IN SENATE March 11, 2019 ___________ Introduced by Sens. SAVINO, KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development 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 20 their ability to stay in their homes and neighborhoods. More than half 21 of seniors spend more on housing than they can afford and more than one EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05900-01-9S. 4402 2 1 hundred thousand seniors have waited for seven years or more on an 2 affordable housing waitlist. 3 The legislature further finds that citywide, almost two-thirds of all 4 senior renter households are among the lowest income households in the 5 city, earning less than fifty percent of area median income. According- 6 ly, the legislature finds that legislation should be enacted to create 7 the elder rental assistance program, which will provide monthly finan- 8 cial assistance to rent-burdened seniors so they can live in dignity in 9 their own homes. This program will be financed through a marginal tax on 10 real estate transactions over two million dollars. 11 § 931. Definitions. As used in this article: 12 1. "Elderly family" shall mean a family, as defined in 24 C.F.R § 13 5.403, whose head (including co-head), spouse, or sole member is a 14 person who is at least sixty-two years of age. It may include two or 15 more persons who are at least sixty-two years of age living together, or 16 one or more persons who are at least sixty-two years of age living with 17 one or more live-in aides, as defined in 24 C.F.R § 5.403, and shall 18 incorporate any amendments made to this definition in 24 C.F.R § 5.403. 19 2. "Low income families" shall mean those families whose incomes do 20 not exceed eighty per centum of the median income for the New York 21 metropolitan statistical area, as determined by the secretary of the 22 federal department of housing and urban development with adjustments for 23 smaller and larger families. 24 § 932. Elder rental assistance program. 1. Subject to the availability 25 of funds generated by the taxes described in subdivision g of section 26 11-2102 of the administrative code of the city of New York, the housing 27 assistance corporation, established by section six hundred fifty-four-b 28 of this chapter, shall provide rental assistance to or on behalf of 29 low-income families whose members constitute an elderly family, who are 30 residents of the city of New York, and who pay more than thirty percent 31 of their monthly adjusted income as rent as calculated pursuant to 42 32 U.S.C § 1437a(a)(1)(A). The amount of rental assistance provided to or 33 on behalf of each such family pursuant to this subdivision shall be an 34 amount up to the difference between (i) a rent established by the 35 department of housing preservation and development on an annual basis 36 not to exceed the maximum monthly rent prescribed in 42 U.S.C. 37 §1437f(c)(1), or such lower rent as may be required by applicable law, 38 or as ordered pursuant to section four hundred sixty-seven-b or four 39 hundred sixty-seven-c of the real property tax law, if applicable and 40 (ii) thirty percent of each such family's monthly adjusted income as 41 calculated pursuant to 42 U.S.C. §1437a(a)(1)(A). 42 2. To the extent a person or entity receives any such rental assist- 43 ance on behalf of a particular elderly family, such person or entity 44 shall credit such assistance against the rent of such family on a month- 45 ly basis. 46 3. The rental assistance provided pursuant to subdivision one of this 47 section shall continue upon the death or permanent departure of a member 48 of an elderly family who was at least sixty-two years of age, including 49 the head of such family (including co-head) or his or her spouse, 50 provided that such elderly family is otherwise eligible for such rental 51 assistance and a member of such elderly family who is at least sixty-two 52 years of age has resided in the dwelling unit receiving such rental 53 assistance for at least one hundred eighty days immediately preceding 54 such death or permanent departure. 55 4. The rental assistance authorized by subdivision one of this section 56 may be provided either as tenant-based or as building-based assistance.S. 4402 3 1 Such assistance may be used in conjunction with any governmental program 2 or project to develop or preserve housing. 3 5. A person who has obtained a rent increase exemption order granted 4 pursuant to section four hundred sixty-seven-b or four hundred sixty- 5 seven-c of the real property tax law may also be eligible to receive 6 rental assistance pursuant to subdivision one of this section if such 7 person is a member of an elderly family that is otherwise eligible for 8 such assistance. 9 § 933. General and administrative provisions. 1. The housing assist- 10 ance corporation and the department of housing preservation and develop- 11 ment shall have the authority to incur reasonable costs for adminis- 12 tration of the program authorized by section nine hundred thirty-two of 13 this article provided that no more than five percent of the taxes 14 collected pursuant to subdivision g of section 11-2102 of the adminis- 15 trative code of the city of New York shall be used for such costs. 16 2. The housing assistance corporation and the department of housing 17 preservation and development shall have the authority to promulgate such 18 rules as are necessary to carry out the provisions of section nine 19 hundred thirty-two of this article. 20 § 3. Section 11-2102 of the administrative code of the city of New 21 York is amended by adding three new subdivisions g, h and i to read as 22 follows: 23 g. In addition to the taxes imposed by subdivisions a and b of this 24 section, there is hereby imposed a tax on each deed or other instrument 25 or transaction conveying or transferring residential real property or an 26 economic interest therein, at the time of delivery by a grantor to a 27 grantee, when the consideration for such property and any improvement 28 thereon (whether or not it is included in the same deed) is greater than 29 two million dollars, or at the time of the transfer of such economic 30 interest by a grantor to a grantee, where the consideration for such 31 economic interest is greater than two million dollars. Except as other- 32 wise provided in this section, all the provisions of this chapter relat- 33 ing to or applicable to the administration, collection and determination 34 of the tax imposed by subdivisions a and b of this section shall apply 35 to the tax imposed by this subdivision with such modifications as may be 36 necessary to adapt such language to the tax so imposed. For purposes of 37 this section, "residential real property" shall include any premises 38 that are or may be used in whole or in part as a personal residence, and 39 shall include a one, two or three-family house, an individual residen- 40 tial condominium unit, or an individual residential cooperative apart- 41 ment. Such tax shall be at the rate of two and one-half percent of the 42 consideration in excess of two million dollars. 43 h. For purposes of this section, the determination of whether a 44 conveyance or transfer shall be subject to the taxes imposed by subdivi- 45 sions a, b and g of this section, and of the rate of such taxes, shall 46 be made prior to the application of subdivision f of this section and 47 paragraph eight of subdivision b of section 11-2106 of this chapter, 48 provided, however, that the amount of consideration subject to such 49 taxes shall be determined after the application of subdivision f of this 50 section and paragraph eight of subdivision b of section 11-2106 of this 51 chapter. 52 i. Any tax collected pursuant to subdivision g of this section shall 53 be used exclusively for the provision of rental assistance to low-income 54 families whose members constitute an elderly family, as described in 55 subdivision nine of section six hundred fifty-four-b of the private 56 housing finance law. For purposes of this subdivision, "low-income fami-S. 4402 4 1 lies" and "elderly family" shall have the same meaning as provided in 2 section nine hundred thirty-one of the private housing finance law. 3 § 4. Section 11-2104 of the administrative code of the city of New 4 York, as added by local law number 71 of the city of New York for the 5 year 1986, subdivision 4 as amended by local law number 59 of the city 6 of New York for the year 1989, subdivisions 5 and 6 as amended and 7 subdivision 7 as added by chapter 170 of the laws of 1994, is amended to 8 read as follows: 9 § 11-2104 Payment. The tax imposed [hereunder] pursuant to subdivi- 10 sions a and b of section 11-2102 of this chapter shall be paid by the 11 grantor to the commissioner of finance at the office of the register in 12 the county where the deed is or would be recorded within thirty days 13 after the delivery of the deed by the grantor to the grantee but before 14 the recording of such deed, or, in the case of a tax on the transfer of 15 an economic interest in real property, at such place as the commissioner 16 of finance shall designate, within thirty days after the transfer. The 17 grantee shall also be liable for the payment of such tax in the event 18 that the amount of tax due is not paid by the grantor or the grantor is 19 exempt from tax. The tax imposed pursuant to subdivision g of section 20 11-2102 of this chapter shall be paid by the grantee to the commissioner 21 of finance at the office of the register in the county where the deed is 22 or would be recorded within thirty days after the delivery of the deed 23 by the grantor to the grantee but before the recording of such deed, or, 24 in the case of a tax on the transfer of an economic interest in real 25 property, at such place as the commissioner of finance shall designate, 26 within thirty days after the transfer. The grantor shall also be liable 27 for the payment of the tax imposed pursuant to subdivision g of section 28 11-2102 of this chapter in the event that the amount of tax due is not 29 paid by the grantee or the grantee is exempt from payment of the tax. 30 All moneys received as such payments by the register during the preced- 31 ing month shall be transmitted to the commissioner of finance on the 32 first day of each month or on such other day as is mutually agreeable to 33 the commissioner of finance and the register. 34 a. From the moneys so received by him or her pursuant to subdivisions 35 a and b of section 11-2102 of this chapter, the commissioner of finance 36 shall set said in a special account: 37 (1) the total amount of taxes imposed pursuant to the provisions of 38 paragraph three of subdivision a of section 11-2102 of this chapter 39 including any interest or penalties thereon; 40 (2) fifty percent of the total amount of taxes imposed pursuant to the 41 provisions of paragraph four of subdivision a of section 11-2102 of this 42 chapter, including fifty percent of any interest or penalties thereon, 43 provided, however, that where such tax is measured by the consideration 44 for a conveyance without deduction for the amount of any mortgage or 45 other lien or encumbrance on the real property or interest therein which 46 existed before the delivery of the deed and remains thereon after the 47 delivery of the deed, the entire amount of tax imposed at the rate of 48 one percent on the portion of the consideration ascribable to such 49 nondeductible mortgage, lien or other encumbrance, including any inter- 50 est or penalties thereon, and fifty percent of the tax on the balance of 51 the consideration, including fifty percent of any interest or penalties 52 thereon, shall be set aside in such special account; 53 (3) fifty percent of the total amount of taxes imposed pursuant to the 54 provisions of subparagraph (iii) of paragraph seven of subdivision a of 55 section 11-2102 of this chapter, including fifty percent of any interest 56 or penalties thereon;S. 4402 5 1 (4) fifty percent of the total amount of taxes imposed pursuant to the 2 provisions of paragraph eight of subdivision a of section 11-2102 of 3 this chapter, including fifty percent of any interest or penalties ther- 4 eon; 5 (5) fifty percent of the total amount of taxes imposed at the rate of 6 two percent pursuant to the provisions of clause (ii) of subparagraph A 7 of paragraph one of subdivision b of section 11-2102 of this chapter 8 including fifty percent of any interest or penalties thereon; 9 (6) with respect to any conveyance of real property, transfer of an 10 economic interest therein, or any grant, assignment or surrender of a 11 leasehold interest in real property, made on or after August first, 12 nineteen hundred eighty-nine and taxable under this chapter, in each 13 instance where the tax rate is in excess of two percent, a portion of 14 the tax received equal to one percent of the consideration subject to 15 the tax plus any interest or penalty attributable to such portion of the 16 tax; and 17 (7) notwithstanding anything in [subdivision] paragraph six of this 18 subdivision to the contrary, in each instance where the tax rate imposed 19 pursuant to subdivision e of section 11-2102 of this chapter is in 20 excess of one percent, a portion of the tax received equal to one-half 21 of one percent of the total consideration for the real property or 22 economic interest therein conveyed or transferred, plus any interest or 23 penalty attributable to such portion of the tax. 24 Moneys in such account shall be used for payment by such commissioner 25 to the state comptroller for deposit in the urban mass transit operating 26 assistance account of the mass transportation operating assistance fund 27 of any amount of insufficiency certified by the state comptroller pursu- 28 ant to the provisions of subdivision six of section [eight-eight-a] 29 eighty-eight-a of the state finance law, and, on the fifteenth day of 30 each month, the commissioner of finance shall transmit all funds in such 31 account on the last day of the preceding month, except the amount 32 required for the payment of any amount of insufficiency certified by the 33 state comptroller and such amount as he or she deems necessary for 34 refunds and such other amounts necessary to finance the New York City 35 transportation disabled committee and the New York City paratransit 36 system as established by section fifteen-b of the transportation law, 37 provided, however, that such amounts shall not exceed six percent of the 38 total funds in the account but in no event be less than one hundred 39 seventy-five thousand dollars beginning April first, nineteen hundred 40 eighty-six, and further that beginning November fifteenth, nineteen 41 hundred eighty-four and during the entire period prior to operation of 42 such system, the total of such amounts shall not exceed three hundred 43 seventy-five thousand dollars for the administrative expenses of such 44 committee and fifty thousand dollars for the expenses of the agency 45 designated pursuant to paragraph b of subdivision five of such section, 46 and other amounts necessary to finance the operating needs of the 47 private bus companies franchised by the city of New York and eligible to 48 receive state operating assistance under section eighteen-b of the 49 transportation law, provided, however, that such amounts shall not 50 exceed four percent of the total funds in the account, to the New York 51 city transit authority for mass transit within the city. 52 b. The moneys received by the commissioner of finance pursuant to 53 subdivision g of section 11-2102 of this chapter shall be held for the 54 benefit of the housing assistance corporation for the provision of 55 rental assistance to low-income families whose members constitute an 56 elderly family in accordance with subdivision i of such section, andS. 4402 6 1 paid to the housing assistance corporation, in the same fiscal year or 2 as soon as practicable thereafter, for the purposes described in such 3 subdivision i. Such moneys shall be used to supplement, rather than 4 supplant, local funds that such city would have expended for the 5 provision of rental assistance to low-income families whose members 6 constitute an elderly family. For purposes of this subdivision, "low-in- 7 come families" and "elderly family" shall have the same meaning as 8 provided in section nine hundred thirty-one of the private housing 9 finance law. 10 § 5. This act shall take effect on the ninetieth day after it shall 11 have become a law.
