Bill Text: NY A05342 | 2023-2024 | General Assembly | Amended


Bill Title: Establishes an accessory dwelling unit incentive program to encourage the creation of accessory dwelling units; includes accessory dwelling units in the definition of the term housing accommodations in the human rights law; provides for a temporary property tax exemption on the increase in value of property resulting from the addition of an accessory dwelling unit.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced) 2024-01-03 - referred to housing [A05342 Detail]

Download: New_York-2023-A05342-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5342--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      March 7, 2023
                                       ___________

        Introduced by M. of A. EPSTEIN, BURDICK -- read once and referred to the
          Committee  on  Housing  -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the real property law, in relation  to  establishing  an
          accessory dwelling unit incentive program; to amend the executive law,
          in  relation to including an accessory dwelling unit in the term hous-
          ing accommodations in the human rights law;  and  to  amend  the  real
          property  tax  law,  in  relation  to providing a tax exemption on the
          increase in value of property resulting from the addition of an acces-
          sory dwelling unit

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The real property law is amended by adding a new article 16
     2  to read as follows:
     3                                 ARTICLE 16
     4                          ACCESSORY DWELLING UNITS
     5  Section 480. Definitions.
     6          481. Accessory dwelling unit incentive program and local laws.
     7          482. Low- and moderate-income homeowners program.
     8    § 480. Definitions. As used in this article, unless the context other-
     9  wise requires, the following terms shall have the following meanings:
    10    1.  "Accessory  dwelling  unit"  shall  mean an attached or a detached
    11  residential dwelling unit  that  provides  complete  independent  living
    12  facilities  for  one  or  more  persons which is located on a lot with a
    13  proposed or existing  primary  residence  and  shall  include  permanent
    14  provisions  for living, sleeping, eating, cooking, and sanitation on the
    15  same lot as the single-family or multi-family dwelling.
    16    2. "Local government" shall mean a city, town or village.
    17    3. "Low-income homeowners"  shall  mean  homeowners  with  an  income,
    18  adjusted for family size, not exceeding eighty percent of the area medi-
    19  an income.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09847-04-3

        A. 5342--A                          2

     1    4.  "Moderate-income homeowners" shall mean homeowners with an income,
     2  adjusted for family size, not exceeding one hundred  twenty  percent  of
     3  the area median income as defined by the division.
     4    5.  "Nonconforming zoning condition" shall mean a physical improvement
     5  on a property that does not conform with current zoning standards.
     6    6. "Proposed dwelling" shall mean a dwelling that is the subject of  a
     7  permit application and that meets the requirements for permitting.
     8    7.  "Division"  shall  mean the New York state division of housing and
     9  community renewal.
    10    § 481. Accessory dwelling unit incentive program and  local  laws.  1.
    11  Within  one  hundred  eighty days of the effective date of this article,
    12  the division shall establish an opt-in program for local governments who
    13  already have or who enact a  local  law  or  ordinance  that  meets  the
    14  requirements  of  subdivision  two  of this section which encourages the
    15  creation of accessory dwelling units. A local government shall have five
    16  years from the date such program is established to enact such local  law
    17  or ordinance to qualify for the program.
    18    2.  (a) To qualify for the program established pursuant to subdivision
    19  one of this section, a local law or ordinance shall:
    20    (i) Designate areas within the jurisdiction of  the  local  government
    21  where  accessory  dwelling  units  shall  be permitted. Designated areas
    22  shall include all areas zoned for single-family or multi-family residen-
    23  tial use, and all lots with an existing residential use.
    24    (ii) Provide for protections for existing illegal  accessory  dwelling
    25  units  to  aid  in  the  conversion of such units to become legal and in
    26  compliance with state and local regulations, including but  not  limited
    27  to:  (1) a mechanism for the conversion of an illegal accessory dwelling
    28  unit to be a legal unit, provided such unit is in  compliance  with  all
    29  applicable  fire  and  safety  codes; and (2) protections for tenants of
    30  illegal accessory dwelling units from unreasonable rent increases.
    31    (iii) Provide for a streamlined approval  process  involving  no  more
    32  than  one  meeting with the applicable approving authority, and limiting
    33  the cost of any necessary applications and permits to a  total  of  five
    34  hundred dollars.
    35    (iv) Provide that sewer and septic hookups shall be governed under the
    36  applicable existing local requirements.
    37    (b) A qualifying local law or ordinance may:
    38    (i)  Require owner occupancy in either the primary or accessory dwell-
    39  ing unit.
    40    (ii) Set a minimum lease duration for accessory dwelling units.
    41    (iii) Limit the total build out to the existing allowable square-foot-
    42  under-floor ratio and lot coverage, consistent with existing setback for
    43  other accessory uses.
    44    (iv) Set minimum or maximum size  limits  for  an  accessory  dwelling
    45  unit.
    46    (c) To qualify for the program established pursuant to subdivision one
    47  of this section, a local law or ordinance shall not:
    48    (i)  Impose an off-street parking requirement on an accessory dwelling
    49  unit,  except  where  no  adjacent  public  street  permits   year-round
    50  on-street  parking  and the accessory dwelling unit is greater than one-
    51  half mile from a subway stop, rail station or bus stop. For purposes  of
    52  this  subparagraph,  an  adjacent  public  street shall be considered as
    53  permitting  year-round  on-street  parking  notwithstanding  rules  that
    54  prohibit parking during limited hours or on certain days of the week.
    55    (ii)  Impose  undue  or unnecessary fire and safety codes on accessory
    56  dwelling units.

        A. 5342--A                          3

     1    (iii) Require more than one point of exterior access  by  door  to  an
     2  accessory dwelling unit.
     3    3. To opt-in to the program established pursuant to subdivision one of
     4  this  section a local government shall submit a copy of its local law or
     5  ordinance to the division. Within ninety days  of  receipt  of  a  local
     6  government's  law  or ordinance, the division shall submit written find-
     7  ings to the local government as to whether the local government's  local
     8  law or ordinance qualifies for the program.
     9    4.  All local governments who opt-in to the program and are determined
    10  by the division to have a qualifying local law  or  ordinance  shall  be
    11  eligible for a ten percent increase of points on such local government's
    12  consolidated  funding  application,  a  ten  percent increase in aid and
    13  incentives for municipalities and aid and incentives for  municipalities
    14  related  payments,  increased eligibility for individual infrastructure,
    15  transportation, parks, and economic development grants.
    16    § 482. Low- and moderate-income  homeowners  program.  1.  Within  one
    17  hundred  eighty days of the effective date of this article, the division
    18  shall establish a lending program to assist  low-income  homeowners  and
    19  moderate-income  homeowners  in  securing  financing for the creation of
    20  accessory dwelling units.
    21    2. An accessory dwelling unit financed with  the  assistance  of  such
    22  program  shall,  if such assistance is in the form of a forgivable grant
    23  at a below-market rate for a period of no less than thirty years and  if
    24  any  such  assistance is in the form of a repayable loan, be offered for
    25  rent at a below-market rate for a period of fifteen years.
    26    3. Such program shall be funded  through  capital  projects  appropri-
    27  ations  and  reappropriations set forth in the state fiscal year housing
    28  program.
    29    4. Within one hundred eighty days of the effective date of this  arti-
    30  cle, the division shall establish a program to provide technical assist-
    31  ance to all homeowners seeking to create an accessory dwelling unit, and
    32  to  protect  tenants of accessory dwelling units against discrimination,
    33  unreasonable rent increases and unwarranted evictions.
    34    5. An accessory dwelling unit financed with  the  assistance  of  such
    35  program shall be limited to an annual maximum rent increase of the lower
    36  of (a) three percent or (b) one and one-half times the annual percentage
    37  change in the consumer price index for the region in which the accessory
    38  dwelling unit is located.
    39    6.  The  division  shall  promulgate  program  criteria and guidelines
    40  necessary to carry out such program.
    41    § 2. Section 292 of the executive law  is  amended  by  adding  a  new
    42  subdivision 42 to read as follows:
    43    42.  The  term  "housing  accommodation" as used in this article shall
    44  include an accessory dwelling unit as  defined  in  subdivision  one  of
    45  section four hundred eighty of the real property law.
    46    §  3.  Paragraph  (a) of subdivision 1 of section 296 of the executive
    47  law, as separately amended by chapters 202 and 748 of the laws of  2022,
    48  is amended to read as follows:
    49    (a)  For  an  employer or licensing agency, because of an individual's
    50  age, race, creed, color, national  origin,  citizenship  or  immigration
    51  status,  sexual  orientation,  gender  identity  or expression, military
    52  status, sex, disability, predisposing genetic characteristics,  familial
    53  status,  marital  status, or status as a victim of domestic violence, to
    54  refuse to hire or employ or to bar or to discharge from employment  such
    55  individual or to discriminate against such individual in compensation or
    56  in  terms,  conditions  or  privileges  of employment. In the case of an

        A. 5342--A                          4

     1  accessory dwelling unit as defined in subdivision one  of  section  four
     2  hundred  eighty  of  the  real  property  law,  the  exemption  from the
     3  provisions of this paragraph for the rental of a  housing  accommodation
     4  in  a  building  which contains housing accommodations for not more than
     5  two families living independently of each other, if the owner resides in
     6  one of such accommodations, shall not apply.
     7    § 4. The real property tax law is amended  by  adding  a  new  section
     8  421-p to read as follows:
     9    §   421-p.  Exemption  of  capital  improvements  to  residential  new
    10  construction involving the creation  of  accessory  dwelling  units.  1.
    11  Residential   buildings   reconstructed,  altered,  improved,  or  newly
    12  constructed in order to create one or more additional residential dwell-
    13  ing units on the same parcel as a pre-existing residential  building  to
    14  provide independent living facilities for one or more persons subsequent
    15  to  the  effective date of a local law or resolution enacted pursuant to
    16  this section shall be exempt from taxation and special ad valorem levies
    17  to the extent provided hereinafter. After a public hearing, the  govern-
    18  ing board of a county, city, town or village may adopt a local law and a
    19  school  district, other than a school district subject to article fifty-
    20  two of the education law, may adopt a resolution to grant the  exemption
    21  authorized  pursuant to this section. A copy of such local law or resol-
    22  ution shall be filed with the commissioner  and  the  assessor  of  such
    23  county,  city, town or village who prepares the assessment roll on which
    24  the taxes of such county, city, town, village  or  school  district  are
    25  levied.
    26    2.  (a)  Such  buildings shall be exempt for a period of five years to
    27  the extent of one hundred per centum of the increase in  assessed  value
    28  thereof attributable to such reconstruction, alteration, improvement, or
    29  new  construction  for  such  additional  residential unit or units that
    30  provide independent living facilities for one or more persons,  and  for
    31  an additional period of five years subject to the following:
    32    (i) The extent of such exemption shall be decreased by twenty-five per
    33  centum  of the "exemption base" for each of the first three years during
    34  such additional period and shall be  decreased  by  a  further  ten  per
    35  centum  of  the  "exemption  base" during each of the final two years of
    36  such additional period. The exemption shall expire at  the  end  of  the
    37  extended  period. The "exemption base" shall be the increase in assessed
    38  value as determined in the initial year of the term  of  the  exemption,
    39  except as provided in subparagraph (ii) of this paragraph.
    40    (ii)  In  any year in which a change in level of assessment of fifteen
    41  percent or more is certified for a final assessment roll pursuant to the
    42  rules of the commissioner, the exemption base shall be multiplied  by  a
    43  fraction,  the  numerator  of which shall be the total assessed value of
    44  the parcel on such final assessment roll (after accounting for any phys-
    45  ical or quantity changes to the parcel since the  immediately  preceding
    46  assessment  roll),  and  the  denominator  of  which  shall be the total
    47  assessed value of the parcel on the immediately preceding final  assess-
    48  ment  roll.  The  result  shall be the new exemption base. The exemption
    49  shall thereupon be recomputed to take into  account  the  new  exemption
    50  base,  notwithstanding the fact that the assessor receives certification
    51  of the change in level of assessment after the completion,  verification
    52  and  filing of the final assessment roll. In the event the assessor does
    53  not have custody of the roll when such certification  is  received,  the
    54  assessor  shall  certify  the recomputed exemption to the local officers
    55  having custody and control of the roll,  and  such  local  officers  are
    56  hereby  directed and authorized to enter the recomputed exemption certi-

        A. 5342--A                          5

     1  fied by the assessor on the roll. The assessor shall give written notice
     2  of such recomputed exemption to the property owner, who may,  if  he  or
     3  she  believes that the exemption was recomputed incorrectly, apply for a
     4  correction in the manner provided by title three of article five of this
     5  chapter for the correction of clerical errors.
     6    (iii)  Such exemption shall be limited to two hundred thousand dollars
     7  in increased market value of the property attributable  to  such  recon-
     8  struction, alteration, improvement, or new construction and any increase
     9  in  market  value greater than such amount shall not be eligible for the
    10  exemption pursuant to this section. For the purposes  of  this  section,
    11  the  market value of the reconstruction, alteration, improvement, or new
    12  construction as authorized by subdivision one of this section  shall  be
    13  equal  to  the  increased  assessed  value  attributable  to such recon-
    14  struction, alteration, improvement, or new construction divided  by  the
    15  class  one ratio in a special assessing unit or the most recently estab-
    16  lished state equalization rate  or  special  equalization  rate  in  the
    17  remainder  of  the  state,  except  where the state equalization rate or
    18  special equalization rate equals  or  exceeds  ninety-five  percent,  in
    19  which  case  the  increase in assessed value attributable to such recon-
    20  struction, alteration, improvement, or new construction shall be  deemed
    21  to  equal  the market value of such reconstruction, alteration, improve-
    22  ment, or new construction.
    23    (b) No such exemption shall  be  granted  for  reconstruction,  alter-
    24  ations, improvements, or new construction unless:
    25    (i)  such reconstruction, alteration, improvement, or new construction
    26  was commenced subsequent to the effective  date  of  the  local  law  or
    27  resolution adopted pursuant to subdivision one of this section; and
    28    (ii) the value of such reconstruction, alteration, improvement, or new
    29  construction exceeds three thousand dollars; and
    30    (iii)   such   reconstruction,   alteration,   improvement,   or   new
    31  construction created one or more additional residential  dwelling  units
    32  on  the  same parcel as the pre-existing residential building to provide
    33  independent living facilities for one or more persons.
    34    (c) For purposes of this section the terms reconstruction, alteration,
    35  improvement, and new construction shall not include ordinary maintenance
    36  and repairs.
    37    3. Such exemption shall be granted only upon application by the  owner
    38  of  such building on a form prescribed by the commissioner. The applica-
    39  tion shall be filed with the assessor of  the  city,  town,  village  or
    40  county having the power to assess property for taxation on or before the
    41  appropriate taxable status date of such city, town, village or county.
    42    4.  If satisfied that the applicant is entitled to an exemption pursu-
    43  ant to this section, the assessor shall approve the application and such
    44  building shall thereafter be exempt from taxation and special ad valorem
    45  levies as herein provided commencing with the assessment  roll  prepared
    46  on the basis of the taxable status date referred to in subdivision three
    47  of this section. The assessed value of any exemption granted pursuant to
    48  this  section  shall  be  entered by the assessor on the assessment roll
    49  with the taxable property, with the amount of the exemption shown  in  a
    50  separate column.
    51    5. For the purposes of this section, a residential building shall mean
    52  any building or structure designed and occupied exclusively for residen-
    53  tial purposes by not more than two families.
    54    6.  In the event that a building granted an exemption pursuant to this
    55  section ceases to be used primarily for residential purposes,  or  title

        A. 5342--A                          6

     1  thereto  is  transferred  to other than the heirs or distributees of the
     2  owner, the exemption granted pursuant to this section shall cease.
     3    7.  (a)  A  county,  city,  town  or village may, by its local law, or
     4  school district, by its resolution:
     5    (i) reduce the per centum of exemption otherwise allowed  pursuant  to
     6  this section; and
     7    (ii)  limit  eligibility  for  the  exemption to those forms of recon-
     8  struction,  alterations,  improvements,  or  new  construction  as   are
     9  prescribed in such local law or resolution.
    10    (b)  No such local law or resolution shall repeal an exemption granted
    11  pursuant to this section until the expiration of the  period  for  which
    12  such exemption was granted.
    13    §  5.  This  act shall take effect immediately; provided however, that
    14  section four of this act shall apply to assessment rolls based on  taxa-
    15  ble status dates occurring on or after such effective date.
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