SCRIE & DRIE
Co-op City Times / August 17, 2019 (Continued from page 1)
increase in monthly carrying charges per room per month for fiscal year 20192020, followed by another 1.9 percent increase in fiscal 2020-2021. (See related article on page 1.) New York City residents of Mitchell-Lama developments, such as Co-op City, must apply for SCRIE through NYC Department of Housing, Preservation and Development (HPD). Cooperators can call HPD at (212) 863-8494 for more information. Through SCRIE, people 62 years or older with total annual household income of $50,000 or less may be eligible for exemption from all or some increases in carrying charges. On the other hand, DRIE applications are evaluated by the NYC Department of Finance (DOF). This year’s 1.9 percent increase in carrying charges raises the average carrying charge from $224.73 per room to $229.00 per room in Co-op City apartments as of Sept. 1, 2019, a difference of approximately $4.27 per room per month on average. On Sept. 1, 2020 the second 1.9 percent carrying charge increase will raise the then-current average carrying charge from $229.00 per room per month to $233.35 per room per month an increase of $4.35 per room on average. SCRIE and DRIE make up New York City’s Rent Freeze Program which “freezes” the rent of eligible senior citizens and those with qualifying disabilities by granting an exemption from paying the “increase” portion of their rent or, in the case of Co-op City, maintenance or carrying charges, thereby helping them to remain in affordable housing. To be eligible for the SCRIE program, applicants must satisfy all of the following requirements: • They must be 62 years and over; • Have an annual household income not in excess of $50,000; • Have a valid one or two-year lease for an apartment that is regulated by the Division of Homes and Community Renewal (HCR), for example, a rent controlled, rent stabilized or hotel stabilized apartment; and •They must pay more than one-third of their household’s monthly income for rent, or in the case of Co-op City shareholders, carrying charges. Landlords and management agents receive tax abatement credits in lieu of cash for any rent increase, and, under Local Law 75 which was signed by Mayor Michael Bloomberg in 2005, the income eligibility threshold of the SCRIE program had been increasing annually by $1,000 until it reached $29,000 in the year 2009. On July 1, 2014, that threshold was increased to $50,000 or less. According to Riverbay’s Director of Finance, Peter Merola, there are currently 1,357 seniors on SCRIE in Co-op City, and 170 households receiving DRIE benefits. “It is always good to see that the city has continued these much needed subsidy programs to help those qualifying cooperators with their monthly living expenses,” said Mr. Merola. “It should be pointed out, however, that both SCRIE and DRIE help cooperators who are 62 years of age and older to pay for the ‘increase’ in carrying charges, not their entire carrying charge. Shareholders should also be aware that each case is different so because your neighbor qualifies for ‘X’ amount does not mean that you will also. Some may be eligible for a lot of help, while others may be eligible for some help.” Mr. Merola explained that the SCRIE and DRIE programs work by the city notifying Riverbay how much assistance each qualifying cooperator is to receive and Riverbay posts this credit to the shareholder’s account. In turn, the city “pays” Riverbay by applying an abatement for this same amount to Riverbay’s real estate taxes. On the other hand, the DRIE law, which was enacted on October 10, 2005, has five criteria and, like SCRIE, applicants must satisfy all of them to be eligible: • The applicant must rent an eligible apartment. • An eligible apartment is defined by the DRIE law as those regulated by the state Division of Housing and Community Renewal, for instance, rent-controlled or rent stabilized apartments; those in the Mitchell-Lama program; those owned by a limited dividend housing company, redevelopment company, or housing development fund company incorporated under the private housing finance law; or those in a building where the mortgage was federally insured under Section 213 of the National Housing Act, and the applicant was a tenant of record at the time of the mortgage termination. • The applicant must be the head of household (18 years of age or older) and named on the lease or rent order, be the tenant of record, or be the spouse or registered domestic partner with a disability; or either of the above. The tenant of record may be a spouse, domestic partner, or child who has attained the right of succession to the apartment upon the death of the leaseholder. • Applicants of DRIE must receive eligible state or federal disability-related financial assistance. Only those currently receiving Federal Supplemental Security Income (SSI); Federal Social Security Disability Insurance (SSDI); US Department of Veterans Affairs disability pension or compensation (Must be Military service-related disability pension or compensation); or Disability-related Medicaid (if the applicant has received either SSI or SSDI in the past) to qualify to receive DRIE. • The applicant must have an annual household income of $50,000 or less. Income eligibility is established by using the applicant’s income from the previous calendar year. • DRIE applicants must pay more than one-third of their household’s aggregate disposable income for rent, which is the total countable wages and other sources of income, minus allowable deductions for all members of the household. “For those qualifying households, this will be a great benefit in that the applicant will not have to pay future carrying charge increases,” said Mr. Merola. “All cooperators who think they may qualify should file their applications with New York City as soon as possible to avoid future carrying charge increases.” Once the DRIE application is filed and approved, the city will notify River-
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bay which residents were approved and at the time of the next carrying charge increase, the resident’s carrying charge should remain at its current level. In turn, the DOF will send Riverbay Corporation a credit towards its property taxes which will compensate the housing development for the carrying charge increase it would have received from the DRIE participant. For assistance completing the application, please call 3-1-1- or contact the Mayor’s Office for People with Disabilities. Mr. Merola emphasizes that since SCRIE and DRIE are New York City programs, shareholders must file their applications as instructed on the application forms, not with Riverbay Corporation. Co-op City shareholders are advised NOT TO apply for SCRIE or DRIE online via the NYC Department of Finance website. Completed applications should be mailed to the address provided on the applications. For the convenience of Riverbay shareholders, applications for both SCRIE and DRIE are available at the reception desk at the Riverbay administrative office, 2049 Bartow Avenue, Bronx, N.Y. JASA Senior Services, located at 2049 Bartow Avenue, provides assistance to shareholders who need help completing their SCRIE and DRIE applications. This service is provided through the LiveOn NY program. Walk-ins are welcomed and service is on a first-come basis. LiveOn representatives are available at the JASA main office on Fridays, between 9 a.m.-12 p.m. For further information, you may contact JASA at (718) 320-2066 or see the JASA page in the Co-op City Times for LiveOn’s Co-op City availability schedule. It should be noted that, by law, households can only receive either SCRIE or DRIE, not both of these rent increase exemptions. In April, DHCR approved the first ever apartment downsizing pilot in Co-op City after being petitioned by Riverbay Management and Board for a waiver to the occupancy agreement to allow senior and DRIE-eligible shareholders who meet established criteria to downsize their apartments without having to pay current equity for the new apartment. This approval was a concerted effort by the Board and Management and with the help of DHCR to alleviate the financial burden which the carrying charge increases may cause on some of the community’s more vulnerable residents – seniors and those with disabilities. So far, 19 shareholders have applied to downsize their apartments in Co-op City. “Shareholders who are considering downsizing and are receiving any subsidy need to keep in mind that a lower monthly carrying charge may impact their future subsidy in their new (smaller) apartment,” Mr. Merola stated.