Proposed Int. No. 978-B
By Council Members Louis, Brewer, Zhuang, Epstein, Farias, Marte, Hudson, Riley, Thomas-Henry, Hanif, Restler, Wilson, Maloney, Hankerson, Abreu, Feliz, Schulman, Krishnan, Cabán, Banks, Won, Dinowitz, Gutiérrez, De La Rosa, Avilés, Ossé, Nurse, Wong, Narcisse, Encarnación, Vernikov and the Public Advocate (Mr. Williams) (in conjunction with the Manhattan and Brooklyn Borough Presidents)
A Local Law to amend the administrative code of the city of New York, in relation to increasing the maximum income level qualifying for exemption from rent increases granted to certain senior citizens and persons with disabilities and adjusting the income requirements related thereto
Be it enacted by the Council as follows:
Section 1. Subparagraphs (ii), (iii), and (iv) of paragraph (2) of subdivision m of section 26-405 of the administrative code of the city of New York, subparagraph (ii) as amended by local law number 44 for the year 2009, subparagraph (iii) as amended by local law number 94 for the year 2005, subparagraph (iv) and clause (b) of such subparagraph as amended by local law number 98 for the year 1985 and clause (a) of such subparagraph as amended by chapter 553 of the laws of 2015, and subparagraph (iv) as renumbered by local law number 76 for the year 2005, are amended to read as follows:
(ii) the [aggregate disposable income (as defined by regulation of the department of finance)] income of all members of the household residing in the housing accommodation whose head of household is sixty-two years of age or older does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, [and] twenty-nine thousand dollars beginning July first, two thousand nine, fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six, per year[, after deduction of federal, state and city income and social security taxes]. For purposes of this [subparagraph, "aggregate disposable income" shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the date of eligibility of a head of the household receiving benefits under this subdivision whether received by the head of the household or any other member of the household] subdivision, “income” shall have the same meaning as set forth in subparagraph (ii) of paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law.
(iii) the [aggregate disposable income (as defined by regulation of such agency as the mayor shall designate)] income for the current income tax year of all members of the household residing in the housing accommodation whose head of the household is a person with a disability pursuant to this section does not exceed [the maximum income above which such head of the household would not be eligible to receive cash supplemental security income benefits under federal law during such tax year. For purposes of this subparagraph, "aggregate disposable income" shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the date of eligibility of a head of the household receiving benefits under this subdivision whether received by the head of the household or any other member of the household] fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six.
(iv) (a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, (A) the maximum rent for the housing accommodations exceeds one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation, or (B) if any expected increase in the maximum rent pursuant to paragraph two, three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one of subdivision g of this section would cause such maximum rent to exceed one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation, or (C) if such head of household has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen regardless of whether the maximum rent or any expected increase described in this clause exceeds one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation; or
(b) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodations exceeds the maximum allowance for shelter which the head of the household is entitled to receive pursuant to the social services law or if any expected increase in the maximum rent pursuant to paragraph two, three, four or five of subdivision a of this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one of subdivision g of this section would cause such maximum rent to exceed the maximum allowance for shelter which the head of the household is entitled to receive.
§ 2. Clause (i) of subparagraph (a) of paragraph (3) of subdivision m of section 26-405, as amended by local law number 40 for the year 1992, is amended to read as follows:
(i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation, or the maximum collectible rent in effect on December thirty-first of the year preceding the effective date of the order, whichever is greater; or
§ 3. Paragraph (5) of subdivision m of section 26-405 of the administrative code of the city of New York, as amended by local law number 44 for the year 2009, is amended to read as follows:
(5) A rent exemption order shall be issued to each tenant who applies to the department of finance or such agency as the mayor shall designate (which agency may also be the department of finance) in accordance with such department's or agency's regulations and who is found to be eligible under this subdivision. Such order shall take effect on the first day of the first month after receipt of such application, except that where the [aggregate disposable] income of all members of the household residing in the housing accommodation whose head of the household is sixty-two years of age or older is greater than five thousand dollars per year but does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, [and] twenty-nine thousand dollars beginning July first, two thousand nine, fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six, per year pursuant to subparagraph (ii) of paragraph two of subdivision m of this section on orders issued on applications received before July first, nineteen hundred seventy-five, the effective date of such order shall be the later of (1) June thirtieth, nineteen hundred seventy-four or (2) the last day of the month in which a person becomes an eligible head of household in the housing accommodation in which such person resides at the time of filing the most recent application for a rent exemption order; and further, except that where any other application has been received within ninety days of the issuance of the order increasing the tenant's maximum rent pursuant to paragraph three, four or six of subdivision (a) of this section, or subparagraph (a), (b), (c), or (l) of paragraph (1) of subdivision (g) of this section or pursuant to court order, whichever is later, the rent exemption order shall without further order take effect as of the effective date of said order increasing the tenant's rent including any retroactive increments collectible pursuant to such orders.
§ 4. Paragraph (9) of subdivision m of section 26-405 of the administrative code of the city of New York, as amended by chapter 553 of the laws of 2015, is amended to read as follows:
(9) Notwithstanding any other provision of law to the contrary, where a head of household holds a current, valid rent exemption order and, after the effective date of this paragraph, there is a permanent decrease in [aggregate disposable] income of all members of the household residing in the housing accommodation in an amount which exceeds twenty percent of such [aggregate disposable] income as represented in such head of the household's last approved application for a rent exemption order or for renewal thereof, such 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 re-establish the ratio of adjusted rent to [aggregate disposable] income which existed at the time of the approval of such eligible head of the household's last application for a rent exemption order 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 a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, less than one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation unless such head of the household has been granted a rent exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen; or (ii) in the case of a 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 head of the household is entitled to receive pursuant to such law. For purposes of this paragraph, a decrease in [aggregate disposable] income shall not include any decrease in such income resulting from the manner in which such income is calculated pursuant to any amendment to paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law, any amendment to the regulations of the department of finance made on or after the effective date of the local law that added this clause, or any amendment to the regulations of such other agency as the mayor shall designate made on or after October tenth, two thousand five. For purposes of this paragraph, "adjusted rent" shall mean maximum rent less the amount set forth in a rent exemption order.
§ 5. Subparagraphs (ii), (iii), and (iv) of paragraph (2) of subdivision b of section 26-509 of the administrative code of the city of New York, subparagraph (ii) as amended by local law number 44 for the year 2009, subparagraph (iii) as amended by local law number 94 for the year 2005, and subparagraph (iv) as amended by chapter 553 of the laws of 2015, are amended to read as follows:
(ii) the [aggregate disposable income (as defined by regulation of the department of finance)] income of all members of the household residing in the housing accommodation whose head of the household is sixty-two years of age or older does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, [and] twenty-nine thousand dollars beginning July first, two thousand nine, fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six, per year[, after deduction of federal, state and city income and social security taxes]. For purposes of this [subparagraph, "aggregate disposable income" shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of the head of the household receiving benefits under this section whether received by the head of the household or any other member of the household] section, “income” shall have the same meaning as set forth in subparagraph (ii) of paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law;
(iii) the [aggregate disposable income (as defined by regulation of such agency as the mayor shall designate)] income for the current income tax year of all members of the household residing in the housing accommodation whose head of the household is a person with a disability does not exceed [the maximum income above which such head of the household would not be eligible to receive cash supplemental security income benefits under federal law during such tax year. For purposes of this subparagraph, "aggregate disposable income" shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of the head of the household receiving benefits under this section, whether received by the head of the household or any other member of the household] fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six.
(iv) (a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, (A) the maximum rent for the housing accommodation exceeds one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation, or (B) subject to the limitations contained within item (d) of subparagraph (i) of paragraph three of this subdivision, if any expected lawful increase in the maximum rent would cause such maximum rent to exceed one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation, or (C) subject to the limitations contained within item (d) of subparagraph (i) of paragraph three of this subdivision, if such head of household has been granted a rent increase exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen regardless of whether the maximum rent or any expected lawful increase described in this clause exceeds one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation; or
(b) in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodation exceeds the maximum allowance for shelter which the head of the household is entitled to receive pursuant to the social services law, or subject to the limitations contained within item (d) of subparagraph (i) of paragraph three of this subdivision, if any expected lawful increase in the maximum rent would cause such maximum rent to exceed the maximum allowance for shelter which the head of the household is entitled to receive.
§ 6. Clause (a) of subparagraph (i) of paragraph (3) of subdivision b of section 26-509 of the administrative code of the city of New York, as amended by local law number 98 for the year 1985, is amended to read as follows:
(a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of either one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation, or the rent in effect immediately preceding the eligibility date, whichever is greater; or
§ 7. Paragraph (9) of subdivision b of section 26-509 of the administrative code of the city of New York, as amended by chapter 553 of the laws of 2015, is amended to read as follows:
(9) Notwithstanding any other provision of law to the contrary, where a head of household holds a current, valid rent exemption order and, after the effective date of this paragraph, there is a permanent decrease in [aggregate disposable] income of all members of the household residing in the housing accommodation in an amount which exceeds twenty percent of such [aggregate disposable] income as represented in such head of the household's last approved application for a rent exemption order or for renewal thereof, such 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 [aggregate disposable] income which existed at the time of approval of such head of the household's last application for a rent exemption order or for renewal thereof; provided, however, that in no event shall the amount of adjusted rent be redetermined to be (i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, less than one-third of the [aggregate disposable] income of all members of the household residing in the housing accommodation unless such head of the household has been granted a rent exemption order that is in effect as of January first, two thousand fifteen or takes effect on or before July first, two thousand fifteen; or (ii) in the case of a head of the household who receives a monthly allowance for shelter pursuant to such law, less than the maximum allowance for shelter which such head of the household is entitled to receive pursuant to the social services law. For purposes of this paragraph, a decrease in [aggregate disposable] income shall not include any decrease in such income resulting from the manner in which such income is calculated pursuant to any amendment to paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law, any amendment to the regulations of the department of finance made on or after the effective date of the local law that added this clause, or any amendment to the regulations of such other agency as the mayor shall designate made on or after October tenth, two thousand five. For purposes of this paragraph, "adjusted rent" shall mean legal regulated rent less the amount set forth in a rent exemption order.
§ 8. Subdivisions d and f of section 26-601 of the administrative code of the city of New York, subdivision d as separately amended by local law numbers 75 and 76 for the year 2025 and subdivision f as amended by local law number 94 for the year 2005, are amended to read as follows:
d. "Eligible head of the household" means a person or his or her spouse who is sixty-two years of age or older or who qualifies as a person with a disability pursuant to section 26-617 of this chapter and is entitled to the possession or to the use and occupancy of a dwelling unit, provided, however, that with respect to a dwelling which 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, "eligible head of the household" shall be limited to that person or his or her spouse who was entitled to possession or the use and occupancy of such dwelling unit at the time of termination of such mortgage, and whose income when combined with the income of all other members of the household whose head of household is sixty-two years of age or older does not exceed twenty-five thousand dollars beginning July first, two thousand five, twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, [and] twenty-nine thousand dollars beginning July first, two thousand nine, fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six, for the taxable period, or whose income for the current income tax year when combined with the income of all members of the household residing in the housing accommodation whose head of the household is a person with a disability does not exceed [the maximum income above which such head of the household would not be eligible to receive cash supplemental security income benefits under federal law during such tax year] fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six.
f. "Income" [means income received by the eligible head of the 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 without limitation, 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 shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of an eligible head of the household receiving benefits hereunder, whether received by the eligible head of the household or any other member of the household. When the eligible head of a household has retired on or after the commencement of the taxable period and prior to the date of making an application for a rent increase exemption order/tax abatement certificate pursuant to this chapter, such person's income shall be adjusted by excluding salary or earnings and projecting such person's retirement income over the entire taxable period] has the same meaning as set forth in subparagraph (2) of paragraph f of subdivision one of section four hundred sixty-seven-c of the real property tax law.
§ 9. Section 26-617 of the administrative code of the city of New York, as added by local law number 76 for the year 2005, the section heading of such section as amended by local law number 109 for the year 2023, is amended to read as follows:
§ 26-617 Eligibility for persons with disabilities. To qualify as a person with a disability for the purposes of this section, an individual shall submit to such agency as the mayor shall designate proof (as specified by regulation of such agency as the mayor shall designate) showing that such individual is currently receiving social security disability insurance (SSDI) or supplemental security income (SSI) benefits under the federal social security act or disability pension or disability compensation benefits provided by the United States department of veterans affairs, or was previously eligible by virtue of receiving disability benefits under the supplemental security income program or the social security disability program and is currently receiving medical assistance benefits based on determination of disability as provided in section three hundred sixty-six of the social services law and whose income for the current income tax year, together with the income of all members of such individual's household, does not exceed [the maximum income at which such individual would be eligible to receive cash supplemental security income benefits under federal law during such tax year] fifty thousand dollars beginning July first, two thousand fourteen, and seventy-five thousand dollars beginning July first, two thousand twenty-six.
§ 10. This local law takes effect immediately and is retroactive to and deemed to have been in full force and effect as of July 1, 2026, and shall expire and be deemed repealed the same date as part U of chapter 55 of the laws of 2014, as amended by subpart A of part V of chapter 59 of the laws of 2026, expires and is deemed repealed; provided that the amendments to subparagraphs (ii), (iii), and (iv) of paragraph (2), clause (a) of subparagraph (i) of paragraph (3), and paragraph (9) of subdivision b of section 26-509 of the administrative code of the city of New York made by sections five, six, and seven of this local law, respectively, shall not affect the expiration of such section and shall be deemed to expire therewith.
NJF
LS # 5075, 9186. 16824, 18874, 22444, 24521, 24622, 24695, 24710, 24722
10/14/2026 6:30 PM