Bill Text: NY S01487 | 2017-2018 | General Assembly | Amended


Bill Title: Increases the average assessed value threshold; relates to the eligibility of J-51 tax abatements to reflect cost of living adjustments.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2018-06-20 - COMMITTED TO RULES [S01487 Detail]

Download: New_York-2017-S01487-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         1487--A
            Cal. No. 264
                               2017-2018 Regular Sessions
                    IN SENATE
                                     January 9, 2017
                                       ___________
        Introduced by Sens. AVELLA, KLEIN -- read twice and ordered printed, and
          when  printed  to be committed to the Committee on Local Government --
          recommitted to the Committee on Local Government  in  accordance  with
          Senate  Rule  6,  sec.  8  --  reported favorably from said committee,
          ordered to first and  second  report,  ordered  to  a  third  reading,
          amended  and  ordered  reprinted,  retaining its place in the order of
          third reading
        AN ACT to amend the administrative code of the city of New York and  the
          real  property tax law, in relation to increasing the average assessed
          value threshold; and to amend the real property tax law,  in  relation
          to  the  eligibility for J-51 tax abatements to reflect cost of living
          adjustments
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subparagraph  (ii)  of  paragraph  3  of subdivision d of
     2  section 11-243 of the administrative code of the city of  New  York,  as
     3  amended  by  local  law  number  49 of the city of New York for the year
     4  1993, is amended to read as follows:
     5    (ii) is owned as a condominium and is occupied  as  the  residence  or
     6  home  of  three  or  more  families  living independently of each other;
     7  provided, however, that, in addition to all other conditions  of  eligi-
     8  bility  for  the benefits of this section, except for multiple dwellings
     9  in which units have been newly created by substantial rehabilitation  of
    10  vacant buildings or conversions of non-residential buildings, the avail-
    11  ability  of  benefits  under  this  section for such multiple dwellings,
    12  buildings or structures shall  be  conditioned  on  the  following:  (a)
    13  alterations  or  improvements  to  at least one building-wide system are
    14  part of the application for benefits, and (b) (i) the assessed valuation
    15  of such multiple dwelling, building, or structure, including land, shall
    16  not exceed an average of [thirty] fifty thousand  dollars  per  dwelling
    17  unit at the time of the commencement of the alterations or improvements,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07089-04-8

        S. 1487--A                          2
     1  and  (ii)  during the three years immediately preceding the commencement
     2  of the alterations or improvements the average per room  sale  price  of
     3  the  dwelling  units or the stock allocated to such dwelling units shall
     4  have  been  no  greater than thirty-five percent of the maximum mortgage
     5  amount for a single family home eligible for  purchase  by  the  Federal
     6  National Mortgage Association; provided that if less than ten percent of
     7  the  dwelling units or an amount of stock less than the amount allocable
     8  to ten percent of such dwelling units was not  transferred  during  such
     9  preceding  three  year  period, eligibility for benefits shall be condi-
    10  tioned upon the multiple dwelling,  building,  or  structure  having  an
    11  assessed  valuation  per dwelling unit of no more than twenty-five thou-
    12  sand dollars at the time of  the  commencement  of  the  alterations  or
    13  improvements.  Provided,  further, that such benefits shall be available
    14  only for alterations or improvements commenced on or after  June  first,
    15  nineteen hundred eighty-six.
    16    §  2.  The  opening  paragraph  of  paragraph  (a) of subdivision 1 of
    17  section 489 of the real property tax law, as amended by  section  19  of
    18  part A of chapter 20 of the laws of 2015, is amended to read as follows:
    19    Any  city  to  which  the  multiple dwelling law is applicable, acting
    20  through its local legislative body or other governing agency, is  hereby
    21  authorized  and  empowered, to and including January first, two thousand
    22  [nineteen] twenty-two, to adopt  and  amend  local  laws  or  ordinances
    23  providing that any increase in assessed valuation of real property shall
    24  be  exempt  from taxation for local purposes, as provided herein, to the
    25  extent such increase results from:
    26    § 3. The closing paragraph of  subparagraph  6  of  paragraph  (a)  of
    27  subdivision 1 of section 489 of the real property tax law, as amended by
    28  section  20  of  part A of chapter 20 of the laws of 2015, is amended to
    29  read as follows:
    30    Such conversion, alterations or improvements shall be completed within
    31  thirty months after the date on which same shall be started except  that
    32  such  thirty month limitation shall not apply to conversions of residen-
    33  tial units which are registered with the loft board in  accordance  with
    34  article  seven-C  of  the multiple dwelling law pursuant to subparagraph
    35  one of this paragraph. Notwithstanding  the  foregoing,  a  sixty  month
    36  period for completion shall be available for alterations or improvements
    37  undertaken  by  a housing development fund company organized pursuant to
    38  article eleven of the private housing finance law, which are carried out
    39  with the substantial assistance of grants, loans or subsidies  from  any
    40  federal,  state or local governmental agency or instrumentality or which
    41  are carried out in a property transferred from such city if  alterations
    42  and  improvements  are  completed  within  seven years after the date of
    43  transfer. In addition, the local housing agency is hereby  empowered  to
    44  grant  an  extension of the period of completion for any project carried
    45  out with the substantial assistance of grants, loans or  subsidies  from
    46  any  federal,  state or local governmental agency or instrumentality, if
    47  such alterations or improvements are completed within sixty months  from
    48  commencement  of  construction. Provided, further, that such conversion,
    49  alterations or improvements shall in any event  be  completed  prior  to
    50  June  thirtieth,  two  thousand  [nineteen]  twenty-two.  Exemption  for
    51  conversions, alterations or improvements pursuant to  subparagraph  one,
    52  two,  three or four of this paragraph shall continue for a period not to
    53  exceed fourteen years and begin no sooner than the first  quarterly  tax
    54  bill  immediately  following  the  completion of such conversion, alter-
    55  ations or improvements. Exemption for alterations or improvements pursu-
    56  ant to this subparagraph or subparagraph five of  this  paragraph  shall

        S. 1487--A                          3
     1  continue for a period not to exceed thirty-four years and shall begin no
     2  sooner  than  the  first  quarterly  tax  bill immediately following the
     3  completion of such alterations or improvements. Such exemption shall  be
     4  equal  to the increase in the valuation which is subject to exemption in
     5  full or proportionally under this subdivision for ten or  thirty  years,
     6  whichever  is  applicable. After such period of time, the amount of such
     7  exempted assessed valuation of such improvements  shall  be  reduced  by
     8  twenty  percent  in each succeeding year until the assessed value of the
     9  improvements are fully taxable.   Provided, however, exemption  for  any
    10  conversion,  alterations  or  improvements  which are aided by a loan or
    11  grant under article eight, eight-A, eleven, twelve, fifteen  or  twenty-
    12  two of the private housing finance law, section six hundred ninety-six-a
    13  or  section ninety-nine-h of the general municipal law, or section three
    14  hundred twelve of the housing act of  nineteen  hundred  sixty-four  (42
    15  U.S.C.A.  1452b),  or  the Cranston-Gonzalez national affordable housing
    16  act (42 U.S.C.A. 12701 et.  seq.), or started after July first, nineteen
    17  hundred eighty-three by a housing  development  fund  company  organized
    18  pursuant  to article eleven of the private housing finance law which are
    19  carried out with the substantial assistance of grants, loans  or  subsi-
    20  dies  from any federal, state or local governmental agency or instrumen-
    21  tality or which are carried out in a property transferred from any  city
    22  and  where alterations and improvements are completed within seven years
    23  after the date of transfer may commence at  the  beginning  of  any  tax
    24  quarter  subsequent  to  the  start  of  such conversion, alterations or
    25  improvements and prior to the completion of such conversion, alterations
    26  or improvements.
    27    § 4. Subparagraph (iv) of paragraph (c) of subdivision 17  of  section
    28  489 of the real property tax law, as added by chapter 388 of the laws of
    29  2016, is amended to read as follows:
    30    (iv)  Notwithstanding  anything  to the contrary contained herein, the
    31  assessed value limitation shall not at  any  time  exceed  [thirty-five]
    32  fifty thousand dollars.
    33    § 5. This act shall take effect immediately.
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