Relates to redetermination of a tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities

• Democratic9

◆ The sponsor's argument

Why Cordell Cleare says this is needed

The SCRIE and DRIE programs help senior citizens and people with disa- bilities remain in'their homes by ensuring that the head of a household who is either at least sixty-two years of age or a person with a disa- bility, where the combined household income for all members of the household is $50,000 or less, spend no more than one-third of their monthly household income on rent or maintenance. Currently, for benefits starting later than July 15, 2015, with each renewal lease, the rent amount is calculated to one-third of the house- hold's monthly income. If that amount is greater than the existing frozen rent, the frozen rent is increased to match the higher amount. However, increases in frozen rent are not readjusted for future decreases in income. Therefore, if the household income of an individual enrolled in either program experiences a temporary increase, for example if a tenant receives a payout from an investment vehicle, their frozen rent is increased, but should the household income subsequently then return to the previous amount, the adjusted rent would remain the same and the tenant might be required to pay a higher frozen rent indefinite- ly. The goal of the program is to provide stable, affordable housing for seniors and people with disabilities with a household income of $50,000 or less. Requiring adjusted rents to proportionally decrease when a household experiences a decrease in income will help effectuate that goal.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.