Landlords in the Rent Freeze Program receive a tax abatement credit (TAC) applied to their property tax bill in the same amount as the increase that the tenant is exempted from paying. The TAC is the difference between the preferential rent and the frozen rent amount that the program has calculated for the tenant to pay.
When a Rent Freeze application is approved or renewed, both the building owner or landlord and the tenant will receive an Approval Order which will provide details about what the tenant is responsible for paying, the amount of the TAC, and the exemption period. Your order will also include the tenant's SCRIE or DRIE docket number. Make sure to keep the number for future reference.
The Department of Finance (DOF) maintains an account for participating landlords to track credits and debits. DOF applies credits from the account to offset property taxes. The owner’s property tax bill shows any SCRIE or DRIE credit or debit activity.
Every month, SCRIE or DRIE credits and debits will be posted to the landlord’s account. First, DOF applies credit balances from your account to automatically offset any taxes that are due for the next period. Then if there are any credits left over, DOF automatically offsets any unpaid taxes that are past due. If there are still credits remaining, they will be left in the account to offset potential debit adjustments.
If an account balance falls below zero because of a debit adjustment, DOF will add the debit balance to the next tax period and issue an adjusted property tax bill.
Once the transaction is verified, the landlord will get a confirmation notice that includes tenant ID, exemption period, and transaction identification number for cross-referencing.
You can ask DOF to apply your SCRIE or DRIE credits to a property account or apply for a refund. For information, visit the Property Tax Payment Assistance page.
You can view TAC information online or request a copy by mail.