§ 3-19 Senior Citizen Rent Increase Exemption Program ("SCRIE").
RCNY § 3-19
(a)Background and applicability. Local Law No. 40 of 1976 (§§ 26-601 et seq.) amended the Administrative Code of the City of New York in order to establish an exemption from rent increases for senior citizens who meet the eligibility requirements specified therein, and who reside in a dwelling unit whose rent is regulated or established pursuant to the provisions of Articles II, IV, V or XI of the Private Housing Finance Law. Amendments to the law in 1977 and 1978 made dwelling units in a dwelling subject to or initially subject to a mortgage insured by the federal government pursuant to § 213 of the National Housing Act (12 U.S.C. § 1715e) eligible for the exemption. The Administrative Code was subsequently further amended to include increases in charges due to capital assessments and voluntary capital contributions within the definition of "increase in maximum rent," and to require that rent increase exemptions and tax abatements granted for such assessments and contributions be paid back by the tenant/shareholder to the housing company, and by the housing company to the City, upon transfer of shares. The amendment regarding capital assessments specifically excluded any dwelling unit subject to a mortgage insured or initially insured by the federal government pursuant to § 213 of the National Housing Act, as amended (12 U.S.C. § 1715e). Subdivision (g) of 28 RCNY § 3-19 implements the amendment to the Administrative Code. The rules set forth in this section implement Administrative Code §§ 26-601 et seq., and are applicable as provided therein. In addition, an amendment was passed on September 6, 1977 to allow portability for senior citizens receiving a subsidy under the rent and rehabilitation law, the rent stabilization law and Local Law 40 of 1976. Portability means that a senior citizen with a valid SCRIE subsidy may move within a development, and in addition, certificates issued by the Department for the Aging and HPD are interchangeable under conditions set forth in the law.
(b)Eligibility requirements.
(1)The head of household or spouse is 62 years of age or older.
(2)The total disposable income of all members of the household when combined does not exceed the amount provided for in RPTL § 467-c(1)(d).
(3)The increase in maximum rent or carrying charges resulted in the maximum rent or carrying charge equalling or exceeding one-third of the combined disposable income of all members of the household. That portion of a rent or carrying charge increase attributable to gas or electrical utility charges or an increase in dwelling space, services or equipment is excluded from exemption.
(4)The head of household is not receiving any other rent subsidies other than public assistance.
(c)Procedures.
(5)The effective date of the SCRIE subsidy for applications received by HPD not more than 120 days from the date of the increase shall be the effective date of the increase. The effective date of the SCRIE subsidy for all other applications shall be the first day of the month following the receipt of the application and shall be based only upon the most recent increase in maximum rent.
(6)It shall be illegal for a housing company to collect any amount for which a SCRIE subsidy provides credit or to withhold benefits from a tenant / cooperator entitled to a SCRIE subsidy and collection or retention of any such amount for a dwelling unit occupied by such eligible head of household shall be deemed a rent overcharge. Upon conviction therefor, the housing company and its directors and any employee responsible therefor, shall be guilty of a misdemeanor, punishable by a fine not to exceed one thousand dollars or imprisonment not to exceed six months, or both.
(d)Reimbursement to housing companies.
(e)Termination of or change of benefits.
(f)Portability of benefits.
(g)Procedures for applications for SCRIE subsidies for charges attributable to capital assessments and voluntary capital contributions.
(ii)In addition to the application, a head of household must submit any other documentation necessary to assist HPD in its review.
(iii)Such housing company shall not approve the transfer of shares unless it has received the payment required by subparagraph (ii) of this paragraph, or made the deduction therein authorized.
(iv)Payment by such housing company of the amount attributable to the capital assessment or voluntary capital contribution set forth in subparagraph (ii) of this subdivision shall be made to the Department of Finance through an adjustment in tax abatement status issued to the Department of Finance by HPD, or by remittance by such housing company of such amount directly to the Department of Finance and written notification to HPD of such payment by the housing company within 90 days of the collection thereof. Payments due to the City in accordance with this subparagraph shall be deemed a tax lien and may be enforced in any manner authorized for the collection of delinquent taxes on real property.
(7)The provisions of this section shall be applicable to an application pursuant to this subdivision except where in conflict with this subdivision, in which case, the provisions of this subdivision shall control.
