Prohibits or limits certain tax exemptions for real property in instances where a pattern or practice of discrimination against occupants has been found based on such occupants' lawful source of income.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7002
SPONSOR: Tapia TITLE OF BILL:
An act to amend the real property tax law, in relation to prohibiting or
limiting certain tax exemptions for real property in instances where a
pattern or practice of discrimination against occupants has been found
PURPOSE:
This bill seeks to combat persistent and systemic housing discrimination
by imposing penalties on landlords who engage in unlawful source of
income (SOI) discrimination. Specifically, it ensures that landlords
with a demonstrated pattern or practice of SOI discrimination are
disqualified from receiving tax exemptions.
SUMMARY OF PROVISIONS:
1. New Section 498 of the Real Property Tax Law - Discrimination in
Housing:
*Definitions (subdivision 1):
*"Lawful source of income" is defined as per section 292 of the execu-
tive law (paragraph (a)).
*"Final determination" refers to a decision upholding a discrimination
finding by the Division of Human Rights, Attorney General, or a court
* (paragraph (b)),
*Conditions for Loss of Tax Exemptions (subdivision 2):
*Applies to landlords found to have engaged in a pattern or practice of
SOI discrimination (paragraph (a)).
Affects tax exemptions for housing companies, insurance companies, rede-
velopment companies, and redevelopment corporations (paragraph (b)).
*Threshold for Establishing a Pattern or Practice of Discrimination
(subdivision 3):
*Landlords with fewer than 50 units: at least two final determinations
of SOI discrimination within five years (paragraph (a)).
*Landlords with 50 to 500 units: at least three final determinations
within five years (paragraph (b)).
*Landlords with over 500 units: at least five final determinations with-
in five years (paragraph (c)).
*Penalties for Noncompliance (subdivision 4):
*First violation beyond the threshold: Required submission of a correc-
tive action plan approved by the Division of Human Rights.
Noncompliance results in a 25% reduction of tax exemption benefits
(paragraph (a)).
*Second violation beyond the threshold: 50% reduction of tax exemption
for two years and mandatory compliance audits (paragraph (b)).
-Third violation beyond the threshold: Full revocation of tax exemption,
with ineligibility for future exemptions for five years unless substan-
tial corrective actions are demonstrated (paragraph (c)).
*Reinstatement Conditions (subdivision 5):
-Landlords who lose their tax exemption may apply for reinstatement
after three years if they:
*Have no further discrimination findings (paragraph (a)(i)).
-Implement corrective measures such as staff training and compliance
monitoring (paragraph (a)(ii)).
-Obtain certification of good standing from the Division of Human Rights
(paragraph (a)(iii)). 1 Effective Date:
*This act shall take effect immediately.
JUSTIFICATION:
Housing discrimination against tenants using rental assistance vouchers
remains rampant in New York, despite state and local protections against
SOI discrimination. Research and reports, including the Denial Tactics
Report (August 2024) and Unlock NYC's crowdsourced data, highlight the
scale of this issue:
*More than 2,200 reports of SOI discrimination have.been collected since
2018, revealing that landlords and brokers routinely deny voucher hold-
ers access to housing, use deceptive tactics, and exploit loopholes to
evade enforcement.
*SOI discrimination perpetuates homelessness, disproportionately affect-
ing Black and Latino communities, women-led households, and families
with children.
*The most common discriminatory tactics include ghosting (ignoring
voucher holders), setting arbitrary income and credit score require-
ments, and falsely claiming units are unavailable.
*Corporate landlords-who control large portions of New York City's
rental housing stock-are responsible for a significant portion of SOI
discrimination cases. However, enforcement agencies remain underfunded
and overwhelmed.
By tying tax exemptions to compliance with anti-discrimination laws,
this bill creates strong financial disincentives for landlords who
repeatedly violate the law. Removing public subsidies from discriminato-
ry landlords ensures that taxpayer funds do not support housing provid-
ers who unlawfully exclude vulnerable tenants.
Additionally, by requiring corrective action plans and independent moni-
toring, the bill promotes proactive compliance rather than merely
punishing noncompliance. These measures align with broader efforts to
address New York's housing crisis, reduce homelessness, and increase
access to stable housing for low-income New Yorkers.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
TBD
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7002
2025-2026 Regular Sessions
IN ASSEMBLY
March 18, 2025
___________
Introduced by M. of A. TAPIA -- read once and referred to the Committee
on Real Property Taxation
AN ACT to amend the real property tax law, in relation to prohibiting or
limiting certain tax exemptions for real property in instances where a
pattern or practice of discrimination against occupants has been found
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 498 to read as follows:
3 § 498. Discrimination in housing. 1. For the purposes of this section
4 the following terms shall have the following meanings:
5 (a) "Lawful source of income" shall have the same meaning as defined
6 by section two hundred ninety-two of the executive law.
7 (b) "Final determination" shall mean a decision that has not been
8 appealed or a decision that has been upheld on appeal by the division of
9 human rights, the attorney general, or a court of competent jurisdic-
10 tion.
11 2. Subject to a finding of a pattern or practice of discrimination
12 under subdivision three of this section, an exemption from taxation for
13 real property otherwise authorized under this article approved by any
14 state or local agency for a housing company, insurance company, redevel-
15 opment company, or redevelopment corporation shall be subject to the
16 provisions of subdivision four of this section, where the division of
17 human rights, the attorney general, or a court of competent jurisdiction
18 has found that such entity, directly or indirectly, refused, withheld
19 from, or denied to any person any of a dwelling or business accommo-
20 dations in such property, or the privileges and services incident to
21 occupancy thereof, on account of race, color, creed, or lawful source of
22 income of such person.
23 3. The provisions of subdivision two of this section shall apply only
24 when a pattern or practice of discrimination has been established based
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10792-02-5
A. 7002 2
1 on multiple final determinations. A pattern or practice shall be deemed
2 established where:
3 (a) for landlords or entities owning or managing fewer than fifty
4 residential units statewide, at least two final determinations of unlaw-
5 ful discrimination based on lawful source of income have been made with-
6 in a five-year period;
7 (b) for landlords or entities owning or managing between fifty and
8 five hundred, inclusive, residential units statewide, at least three
9 final determinations of unlawful discrimination have been made within a
10 five-year period; or
11 (c) for landlords or entities owning or managing more than five
12 hundred residential units statewide, at least five final determinations
13 of unlawful discrimination have been made within a five-year period.
14 4. A landlord or entity that has violated subdivision two of this
15 section, and found to have established a pattern or practice of discrim-
16 ination under subdivision three of this section, shall be subject to the
17 following penalties:
18 (a) For a first violation beyond the threshold under subdivision three
19 of this section, the landlord shall be required to submit a corrective
20 action plan, which shall be approved by the division of human rights.
21 Such plan shall include measures such as staff training, revised poli-
22 cies, and independent monitoring. Failure to submit such approved plan
23 within sixty days shall result in a twenty-five percent reduction in tax
24 exemption benefits until compliance is demonstrated.
25 (b) For a second violation beyond threshold under subdivision three of
26 this section, any tax exemption otherwise authorized under this chapter
27 for the subject property shall be reduced by fifty percent for a period
28 of two years, and the landlord shall be subject to mandatory compliance
29 audits by the division of human rights.
30 (c) For a third violation beyond threshold under subdivision three of
31 this section, any tax exemption otherwise authorized under this chapter
32 for the subject property shall be fully revoked, and the landlord shall
33 be ineligible for any new tax exemptions for a period of five years
34 unless such landlord demonstrates substantial corrective actions, as
35 determined by the division of human rights.
36 5. (a) If a landlord loses their tax exemption under paragraph (c) of
37 subdivision four of this section, such landlord may apply for rein-
38 statement after a period of three years if such landlord can demon-
39 strate:
40 (i) no further findings of discrimination since the exemption revoca-
41 tion;
42 (ii) implementation of corrective measures, including training
43 programs, anti-discrimination policies, and independent compliance moni-
44 toring; and
45 (iii) certification from the division of human rights that such land-
46 lord is in good standing under this section.
47 (b) The application for reinstatement shall be reviewed and decided
48 within one hundred twenty days by the appropriate state agency.
49 § 2. This act shall take effect immediately.
