Provides for a real property tax exemption for certain residential properties with accessory dwelling units occupied by households in need in Suffolk county when the owner of the property resides in the primary building on the property and certain other conditions are met pertaining to the percentage of the total assessment of the property, the income of the tenants of the accessory dwelling unit or units, and the amount of the rent for the accessory dwelling unit.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7569
SPONSOR: Ramos TITLE OF BILL:
An act to amend the real property tax law, in relation to providing a
real property tax exemption for certain residential properties with
accessory dwelling units occupied by households in need in Suffolk coun-
ty
PURPOSE OR GENERAL IDEA OF BILL:
This legislation provides for a real property tax exemption for certain
residential properties with accessory dwelling units occupied by house
holds
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 The real property tax law is amended by adding a new section
421-r as follows:
§ 421-r. establishing a real property tax exemption for residential
properties with accessory dwelling units set aside for households in
need within towns and villages in (1) Suffolk County, NY. To qualify for
the exemption, the following condition must be met: (a) the accessory
dwelling unit must not exceed thirty percent of the most recent total
assessed value of the property; (b) the accessory dwelling units must be
rented and occupied by households with annual gross income at or below
80% of the area of income for Suffolk/Nassau County, adjusted for house-
hold size; (c) monthly rent for accessary dwelling units must be thirty
percent of fifty percent of the area median income; (d) the primary
building where the accessory dwelling units are located must be owned
and occupied by persons or families with annual gross income at or below
one hundred twenty percent for the region; (e) the property owner must
occupy the primary building; (f) the property owner or tenants must
provide documentation to the Division of Housing and Community Renewal
for certification.
(2) Eligible properties will receive a fifteen percent real property tax
exemption based on that most recent total assessed value, if any tenant
occupying an accessory dwelling unit is employed as a firefighter, emer-
gency medical technician, or paramedic the tax exemption increases to
twenty percent.
(3) The exemption remains in effect a long as the property meets the
requirements and conditions of this section.
(4) Within one hundred eighty days of the effective date of this
section, the division of housing and community renewal are empowered to:
(a) task designate official with certifying that applicant and tenants
comply the requirements and conditions; and (b) establish policies and
guidelines to assist tenants and homeowners after an exemption granted
under this section expires.
Section 2: This act shall take effect immediately.
JUSTIFICATION:
With the home prices in Suffolk County continuing to rise astronomically
every year, there is a need to ensure that homeowners and essential
workers can continue to work and live on Long Island. Creating a state
property tax exemption for Long Island homeowners who set aside their
Accessory Dwelling Units (ADUs) for households in need would open new
affordable housing opportunities across Long Island without changing the
current ordinance or inhibiting local control, while preserving the
community's character.
Those who chose to not apply would not have any direct impact on their
property taxes. While this program is limited to homeowners who have
ADUs on their property, local government can extend legal eligibility to
make it easier for other homeowners to build and/or permit ADUs on their
property. This incentive will not cause any development that is not
already permitted by existing law since it does not mandate any local
zoning changes.
The affordable housing crisis across the County has reached a critical
point. Young workers have been forced to leave Long Island in search of
more affordable living options. We need to ensure that Suffolk County
can provide affordable housing options to keep our families and communi-
ties intact.
PRIOR LEGISLATIVE HISTORY:
New bill
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7569
2025-2026 Regular Sessions
IN ASSEMBLY
April 1, 2025
___________
Introduced by M. of A. RAMOS -- read once and referred to the Committee
on Real Property Taxation
AN ACT to amend the real property tax law, in relation to providing a
real property tax exemption for certain residential properties with
accessory dwelling units occupied by households in need in Suffolk
county
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property tax law is amended by adding a new
2 section 421-r to read as follows:
3 § 421-r. Exemption of residential properties with accessory dwelling
4 units set aside for renting by households in need; certain towns and
5 villages. 1. In any town or village within Suffolk county, residential
6 properties possessing, on the same parcel as a pre-existing residential
7 building, one or more additional legal residential accessory dwelling
8 units providing independent rent-based living facilities for persons and
9 families in need as determined pursuant to paragraph (b) of this subdi-
10 vision, shall be exempt from state real property taxation, provided
11 that:
12 (a) the accessory dwelling unit or units represent no more than thirty
13 percent of the most up to date total assessment of the value of the
14 property;
15 (b) the accessory dwelling unit or units are rented and occupied by
16 persons or families whose annual gross income is at or below eighty
17 percent of the Suffolk county/Nassau county area median income adjusted
18 for household and unit size as determined by the division of housing and
19 community renewal;
20 (c) the monthly rent for the accessory dwelling unit or units is
21 calculated using the formula: thirty percent of fifty percent of the
22 Suffolk county/Nassau county area median income adjusted for household
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10615-01-5
A. 7569 2
1 and unit size as determined by the division of housing and community
2 renewal, minus the applicable utility allowance;
3 (d) the primary building on the residential property where the acces-
4 sory dwelling unit or units are located is owned and occupied by persons
5 or families whose annual gross income is at or below one hundred twenty
6 percent of the Suffolk county/Nassau county area median income adjusted
7 for household size as determined by the division of housing and communi-
8 ty renewal;
9 (e) the property owner is a current occupant of the primary building
10 on the residential property where the accessory dwelling unit or units
11 are located; and
12 (f) the property owner applying for the exemption and the prospective
13 or current tenants of the accessory dwelling unit or units provide
14 documentation, including but not limited to proof of income, proof of
15 property ownership, employment records, and proof of residency, to the
16 division of housing and community renewal for the purpose of certifying
17 that the requirements of this subdivision are met as part of any appli-
18 cation for an exemption.
19 2. If satisfied that the applicant is entitled to an exemption pursu-
20 ant to this section, the assessor shall approve the application and such
21 eligible real property shall thereafter receive a real property tax
22 exemption equaling fifteen percent of the most up to date total assess-
23 ment of the property value; provided, however, that if it is certified
24 by the division of housing and community renewal that any person occupy-
25 ing an accessory dwelling unit located on the applicant property is
26 employed as a firefighter, emergency medical technician, or paramedic,
27 the real property tax exemption granted pursuant to this section shall
28 be equal to twenty percent of the most up to date total assessment of
29 the property value.
30 3. Any exemption granted pursuant to this section shall remain in
31 effect for as long as the property in receipt of such exemption meets
32 the requirements and conditions of this section.
33 4. Within one hundred eighty days of the effective date of this
34 section, the division of housing and community renewal shall be
35 empowered to:
36 (a) designate officials who shall be tasked with certifying that the
37 applicant and tenants of an applicant's accessory dwelling unit or units
38 are in compliance with the requirements and conditions of this section;
39 and
40 (b) establish policies and guidelines designed to assist tenants and
41 homeowners after an exemption granted pursuant to this section has
42 expired.
43 § 2. This act shall take effect immediately.
