Exemption Administration Manual, Part 2: Multiple dwellings and urban renewal—Chart D: Eligibility requirements: Tenant income limits housing (multiple dwelling) exemptions

Assessor Manuals

Section 4.07 

Chart D: Eligibility requirements: Tenant income limits housing (multiple dwelling) exemptions

*Limited-profit housing company, limited-dividend housing company, redevelopment housing company, housing development fund company, or any corporate owner of a dwelling subject to a mortgage insured by the federal government under National Housing Act 213.

Notes

Limit on income

1. In New York City, family income may not exceed 80% of the median income for the metropolitan statistical area, except that, in the case of a homestead, family income may not exceed 80% of the median income for the state. Outside New York City, where the property is located in a metropolitan statistical area, family income may not exceed 90% of the median income for the area or 90% of the median income for the state, whichever is greater; where the property is located outside a metropolitan statistical area, family income may not exceed 90% of the median income for the county in which the property is located or 90% of the median income for the state, whichever is greater.
2. Income equals "net probable aggregate annual income," which means the annual income of family members from all sources after deductions of federal, state, and city income taxes, except that a municipality may provide that any increases in social security benefits which take effect after the person or family has assumed occupancy should not be taken into account. The income limit does not apply to persons or families who are recipients of public assistance under the Social Services Law.
3. At least 40% of the funds used by the Housing New York Corporation (created by PHFL 654-c) must be used to provide housing for persons and families whose incomes do not exceed 55% of the median income of the area. No more than 25% of such funds may be used to provide housing for persons and families whose incomes exceed 90% of the median income of the area. No such funds may be used to provide housing for persons and families whose incomes exceed 125% of the median income of the area. Median income of the area is defined as the median income governing eligibility as a lower-income family of four in the New York Metropolitan Statistical Area for the purposes of Section 8 of the U.S. Housing Act of 1937. Persons and families transferred from emergency shelters for the homeless or those eligible for or receiving home relief, aid to families with dependent children, or supplemental security income benefits are considered to meet the 55% income limit. Persons and families not considered as meeting the 55% limit include those occupying dwellings located in an area eligible for mortgage insurance provided by the Rehabilitation Mortgage Insurance Corporation which have annual rent levels, after rehabilitation, of less than 30% of 90% of median income; however, such persons and families are considered to meet the 90% income limit.  In addition, newly constructed dwellings intended to benefit persons and families whose incomes do not exceed 80% of the median income of the area must remain affordable to this income group for a minimum period of 15 years.
4. Tenants must be receiving monthly public assistance payments or must be only able to afford rents no greater than those paid by persons receiving such payments.
5. In metropolitan statistical areas, family income may not exceed 80% of the median family income in the area. Outside such areas, family income may not exceed 80% of the median family income in the county in which the project is located.
6. Income equals income from all sources after deduction of all income and social security taxes and includes social security and retirement benefits, supplemental security income and additional state payments, public assistance benefits, interest, dividends, net rental income, salary or earnings, and net income from self-employment, but does not include payments made to individuals because of their status as victims of Nazi persecution, gifts, inheritances, or any increases in social security benefits or a public or private pension paid to any member of the household where the increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year that take effect after the date the head of household becomes eligible to receive rent increase exemptions, whether these benefit increases are received by the head of household or any other member of the household. If the head of household retires before the beginning of the income tax year immediately preceding application for tax abatement, the income for that year may be adjusted by excluding salary or earnings and projecting his or her retirement income over the entire period of that year.
7. Income equals income received by the head of 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 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 does not include payments made to individuals because of their status as victims of Nazi persecution, gifts, inheritances, or increases in social security benefits or a public or private pension paid to any member of the household where the increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year that take effect after the head of household becomes eligible for rent increase exemptions. If the head of household retires on or after the beginning of the income tax year immediately preceding application for tax abatement, his or her income must be adjusted by excluding salary or earnings and projecting his retirement income over the entire period of that year.

Note: Effective July 1, 1988 - If the property is owned by a limited-profit housing company, limited-dividend housing company, or housing development fund company or by an owner subject to the provisions of PHFL Article 8, the definition of income excludes federal old age, survivors, and disability insurance benefits.

Limit on ratio of income to rental

Where two ratios are given: the first applies to persons or families with no more than two dependents; the second applies to persons or families with three or more dependents.

1. Income equals "probable aggregate annual income," which means the annual income of the chief wage earner of the family, plus all other income of the other members of the family over the age of 21 years, plus a proportion of the income of members under the age of 21 years, excluding a deduction of $5,000 from the income of secondary wage earners of the family or a larger deduction if approved by the State Commissioner of Housing or the supervising agency, as appropriate. In addition, the commissioner or supervising agency may approve the exclusion of a proportion of the income of other family members over the age of 21.
2. Income equals "probable aggregate annual income," which means the annual income of the occupant, subject to the rules and regulations of the State Commissioner of Housing or other appropriate authority relative to the allocation of the income of a family among its members to determine the income attributable to the occupant.
3. Income is defined as in (a) above.  Rental equals the sum of (1) the total annual carrying charges, (2) 6% of the investment of a person or family in the equity obligations of the housing company, (3) the value or cost of heat, light, water, and cooking fuel (where not included in the carrying charges), and (4) the value or cost of repainting and replacement of fixtures and appliances (to the extent authorized by the State Commissioner of Housing or other appropriate authority).
4. Income is defined as in (a) above. Rental equals the sum of (1) the total annual carrying charges, (2) 6% of the investment of a person or family in the equity obligations of the housing company, and (3) the value or cost of repainting and replacement of fixtures and appliances (to the extent authorized by the State Commissioner of Housing or other appropriate authority).
5. Income is defined as in (a) above.
   Rental equals the total annual carrying charges.
6. These income limits apply to persons or families who, immediately prior to the date on which the contract for the municipal loan is entered into, occupy dwelling units in the building and continue to occupy these units during and after completion of the improvement project. Temporary removal from the units because of the improvement project does not affect continuity of occupancy.  Income equals "probable aggregate annual income," which means the annual income of the chief wage earner of the family, plus all other income of the other members of the family over the age of 21 years, plus a proportion of the income of members under the age of 21 years, except that the appropriate local agency may approve the exclusion of a proportion of the income of other family members over the age of 21. In calculating annual income, social security payments and income received from private pension funds by any person 62 years of age or more must be excluded up to a total maximum amount of $75 per month.
7. Income is defined as in (f) above.
8. Income equals "probable aggregate annual income," which is not defined in the statute. Rental equals the sum of (1) the total annual carrying charges and (2) 6% of the investment of the person or family in the equity obligations of the housing company.
9. Income equals "probable aggregate annual income," which is not defined in the statute.
10. These income limits apply to persons or families who, immediately prior to the date on which the contract for the loan is entered into, occupy dwelling units in the building and continue to occupy these units during and after completion of the improvement project. Income is defined as in (f) above.
11. Income is defined as in (f) above.
12. If household income is the basis of rent exemption/tax abatement, the maximum income to rental ratio is 3:1. Publicly provided shelter allowances may also determine the amount of rent exemption (see Exemption Profiles for RPTL 467-b, 467-c).

Exceptions to limit on income or ratio of income to rental

1. Families with two or more dependents whose probable aggregate annual income does not exceed 125% of the limits prescribed by law are also eligible for admission to the project but are subject to a rental surcharge.
2. In addition to the exception described in (a) above, the income limits do not apply to projects whose period of real property tax exemption has expired, provided that the State Commissioner of Housing has waived his rights over the control of rentals and selection of tenants.
3. Persons or families whose probable aggregate annual income does not exceed the median income for families of the same size in the same metropolitan area are also eligible for admission to the project, but if their income exceeds the 6:1 or 7:1 ratio of income to rental they are subject to a rental surcharge.
4. The income limits do not apply (1) after the municipal loan is repaid, (2) after any real property tax exemption or abatement resulting from the improvement project has expired, or (3) after a period of at least 10 years from the occupancy date, whichever is later.
5. The income limits do not apply (1) after the loan is repaid or (2) after a period of at least 10 years from the occupancy date.

Time income limit applicable

If income limit exceeded, rental surcharge required

1. If income increases by any amount above the limits prescribed by law.
2. If income increases by any amount above the limits prescribed by law and the increase in income continues for a period of three months or more.
3. If income increases by 50% or more of the amount prescribed by law.
4. Tenants must submit an annual income affidavit. Upon submission of the affidavit, the owner of the property must adjust the tenant's rent so as to maintain, to the extent economically feasible, the affordability of the housing project to the tenants. If the tenant fails to submit such an affidavit, or if there is a disagreement caused by understatement of income and the tenant fails to correct the original affidavit within 60 days of notification by the landlord, the landlord must, in addition to the last rent, assess the tenant a surcharge equal to the difference between the tenant's last rent and the rent the tenant would otherwise have to pay had the grant or loan used to fund the project been made as a loan at the prevailing market rate of interest and requiring 30-year amortization at the time the grant or loan was made.

If income limit exceeded, removal required

1. If income increases by more than 50% above the limits prescribed by law, removal from the project is required. If income increases by 50% or less above the limits prescribed by law, removal from the project is not mandatory. The housing company may permit the person or family to remain in occupancy provided that the housing company, with the approval of the State Commissioner of Housing or other appropriate authority, determines that removal would cause hardship to the person or family.
2. If income increases by more than 50% above the limits prescribed by law, removal from the project is required. If income increases by 50% or less above the limits prescribed by law and the increase in income continues for a period of three months or more, removal from the project is possible but not mandatory. The housing company may permit the person or family to remain in occupancy provided that the company is convinced that the person or family cannot secure other safe and sanitary dwelling accommodations or upon removal would otherwise experience undue hardship.
3. If income increases by 50% or more of the amount prescribed by law, the person or family may be required to vacate the project if (1) occupancy began on or after 7/1/83 and (2) the person or family has been discharged from all liability on any note, bond, or other evidence of indebtedness relating to the project and has been repaid by the housing company all sums paid to the company for the purchase of stock or income debentures as a condition of occupancy. However, persons or families subject to removal may be permitted by the housing company, with the approval of the State Commissioner of Housing, to continue to occupy the dwelling for not more than three years from the beginning of the increase in income (or longer if approved by the commissioner).
4. Various conditions apply:
   1. If, on the date that the municipal loan contract is entered into, income exceeds the limits prescribed by law by more than 50%, the occupant is subject to removal from the dwelling unit, with the approval of the appropriate local agency, upon expiration of a period of two years after the date on which the contract is entered into.
   2. If, at any time within a period of two years after the municipal loan contract is entered into, income increases so as to exceed the income limits by more than 50%, the occupant is subject to removal from the dwelling unit, with the approval of the appropriate local agency, upon expiration of that two-year period.
   3. If, at any time after the expiration of the two-year period following the entering into of the municipal loan contract, the dwelling unit becomes subject to rent control and income increases so as to exceed the income limits by more than 50%, the occupant is subject to removal from the dwelling unit upon approval of the appropriate local agency.
5. If, after a person or family begins occupancy of a dwelling unit, the unit becomes subject to rent control and income increase so as to exceed the income limits by more than 50%, the person or family is subject to removal from the dwelling unit upon the approval of the appropriate local agency.
6. Various conditions apply:
   1. If, on the date that the loan contract is entered into, income exceeds the limits prescribed by law by more than 50%, the occupant must move from the dwelling unit upon expiration of a period of two years after the date on which the contract is entered into.
   2. If, at any time within a period of two years after the loan contract is entered into, income increases so as to exceed the income limits by more than 50%, the occupant must move from the dwelling unit upon expiration of that two-year period.
   3. If, at any time after the expiration of the two-year period following the entering into of the loan contract, the dwelling unit becomes subject to rent control and income increases so as to exceed the income limits by more than 50%, the occupant must move from the dwelling unit.
7. If, after a person or family begins occupancy of a dwelling unit, the unit becomes subject to rent control and income increases so as to exceed the income limits by more than 50%, the person or family must move from the dwelling unit.

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