2006 New York Code - Rent Increase Exemption Orders/tax Abatement Certificates.

 
    §  26-605  Rent  increase exemption orders/tax abatement certificates.
  (a) Subject to the provisions of this chapter an eligible  head  of  the
  household  may  obtain  a  rent  increase  exemption order/tax abatement
  certificate entitling him or her 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
  persons' 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.
    (b) Notwithstanding any other provision of  law,  when  a  head  of  a
  household  to whom the then current, valid tax abatement certificate has
  been issued under this chapter, chapter three or chapter  four  of  this
  title  moves  his  principal  residence  to  a  subsequent dwelling unit
  subject to this chapter, 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,
  the  head  of the household may apply to the supervising agency, subject
  to the terms and conditions imposed by this chapter, 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  26-406  or
  section 26-409 of this title; or
    (3)  where  the  eligible  head  of  the  household does not receive a
  monthly allowance 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.
    (c)  Notwithstanding  any  other  provision  of  law and to the extent
  applicable to the provisions of this chapter,  any  renewal  application
  being  made  by  the  tenant pursuant to this section, any rent increase
  order then in effect with respect to such tenant shall be deemed renewed
  until  such  time  as  the  department  of  housing   preservation   and
  development  shall  have  found  such  tenant  to  be either eligible or
  ineligible for a rent increase 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 increase exemption order,  such
  tenant shall be liable to his or her landlord for the difference between
  the amounts he or she has paid under the provisions of the automatically
  renewed  order  and the amounts which he or she would have been required
  to pay in the absence of such order. Any rent increase  exemption  order
  issued  pursuant  to this chapter shall include provisions giving notice
  as to the contents of this section relating  to  automatic  renewals  of
  rent exemption orders.
    (d)  notwithstanding any other provision of law to the contrary, where
  an eligible head of the household holds a current, valid  rent  increase
  exemption  order/tax abatement certificate and, after the effective date
  of this subdivision, 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 reestablish 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; 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 subdivision, 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 section four hundred sixty-seven-c
  of the real property tax law or an amendment to subdivision f of section
  26-601 of this code made on  or  after  April  first,  nineteen  hundred
  eighty-seven.  For  purposes  of this subdivision, "adjusted rent" shall
  mean maximum rent less the amount set forth in a rent increase exemption
  order/tax abatement certificate.