NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7058
SPONSOR: Rosa TITLE OF BILL: An act to amend the real property tax law, in relation
to a green roof tax abatement for certain properties in a city of one
million or more persons
SUMMARY OF PROVISIONS:
This bill extends and modifies the real property tax abatement currently
provided by the city of New York (the "City") for the installation of
green roofs within the City.
Section 1 of the bill amends the definition of the term "green roof" to
allow for the inclusion of a controlled flow roof drain, and to add
native and agricultural plant species to the list of "live plants" that
can be used to meet the requirement that 80% of the vegetation layer of
a green roof must be covered by live plants.
Section 2 of the bill provides that beginning with tax years (i.e., City
fiscal years) commencing on or after July 1, 2014 and ending on or
before June 30, 2019, the tax abatement shall be $5.23 per square foot
of a green roof (an increase from $4.50 per square foot of a green
roof), provided that the amount of the abatement does not exceed the
lesser of $200,000 (an increase from $100,000) or the tax liability of
the eligible building in the tax year in which the abatement is taken.
This section also establishes an overall cap on the amount that would be
spent in any one year on the abatement program ($750,000 in City fiscal
year 2015 and $1,000,000 in City fiscal years 2016, 2017, 2018, 2019).
The aggregate amount of abatements would be allocated by the New York
City Department of Finance among eligible applicants on a pro rata
basis.
Section 3 of the bill extends the application deadline from March 15,
2013 to March 15, 2018.
Section 4 of the bill provides that the bill takes effect immediately.
REASONS FOR SUPPORT:
The green roof tax abatement incentive is part of a larger comprehensive
green infrastructure program in the City to capture the first inch of
rainfall on 10% of the impervious areas in combined sewer watersheds
through detention or infiltration techniques. However, due to the
multiple sustainability benefits associated with green roofs, the green
roof tax abatement is applicable citywide in both combined and separate
storm sewer areas.
Green roofs provide considerable benefits to New York City, but the
expense of installation remains prohibitive to building and homeowners.
This proposal would continue, with some modifications, the previous
abatement, which was intended to offset some of the costs associated
with gem roof installation. The property tax abatement program would be
extended for five years. As part of this extension, the definition of a
green roof would be amended to authorize the use of native and/or agri-
cultural plant species. Over the past five years, interest in rooftop
farms (i.e., green roofs with native and/or agricultural plant species)
has increased significantly in New York City. In addition to creating
areas for stormwater retention, rooftop farms have the added benefit of
providing affordable and local produce to New York City residents,
another goal of Mayor Bloomberg's PlaNYC. To address green roofs with a
growth medium of less than three inches (i.e., more typical green roofs
without agricultural plant species), the option of a controlled flow
roof drain would be included as an additional water holding layer,
consistent with DEP's Stormwater Performance Standard and Guidelines for
the Design and Construction of Stormwater Management Systems. Controlled
flow roof drain systems provide temporary ponding on a rooftop surface
and slowly release the ponded water through roof drains.
In addition to the above modifications to the definition of a green
roof, a nominal increase in the value of the abatement would be imple-
mented, from $4.50 per square foot of green roof to $5.23 per square
foot of green roof. This adjusted value would reflect 2012 Producer
Price Index market cost for commercial roof contractors and thus would
continue to incentivize green roofs by offsetting construction costs by
roughly the same value as the original tax abatement. Given that rooftop
farms tend to be larger than typical green roofs (generally around one
acre in size), the abatement value cap would also be increased.
Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.
