Amd S17, Chap 576 of 1974; amd SS1, 2, 2-a & 4, Emerg Hous Rent Cont L; amd S2, Chap 329 of 1963; amd S10,
Chap 555 of 1982; amd S4, Chap 402 of 1983; amd S46, Chap 116 of 1997; amd SS5, 10, 5-a, 12 & 6, Emerg Ten
Prot Act of 1974; amd NYC Ad Cd, generally; amd Part A S13, Chap 97 of 2011; amd RPT L, generally; amd S27,
Chap 4 of 2013; amd SS282-a & 284, Mult Dwell L; amd SS1115, 606, 1210, 1262-e & 1202, Tax L; amd Part C S2,
Chap 2 of 2005; amd Gen City L, generally; amd Ed L, generally; amd S34, Chap 91 of 2002; amd S17, Chap 345
of 2009; amd S11, Dom Rel L; amd Part K S3, Chap 59 of 2014; amd S3-c, Gen Muni L; amd S401, V & T L
Relates to rent control provisions; limits the rent increase after vacancy of a housing accommodation; relates to the adjustment of maximum allowable rent; extends certain provisions relating to specially eligible premises and special rebates, eligibility periods, requirements, benefit periods and applications for abatements; authorizes the division of housing and community renewal to establish a tenant protection unit; relates to interim multiple dwellings (Part A); relates to charter schools; makes an appropriation to the education department for reimbursement to non-public schools; relates to the release of standardized test questions and answers, teacher evaluations and establishing a content review committee; relates to mayoral control; determines who may solemnize a marriage (Part B); establishes a property tax relief credit (Part C); appropriates funds for certain services and expenses.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8323
SPONSOR: Heastie TITLE OF BILL:
An act to amend chapter 576 of the laws of 1974 amending the emergency
housing rent control law relating to the control of and stabilization of
rent in certain cases, the emergency housing rent control law, chapter
329 of the laws of 1963 amending the emergency housing rent control law
relating to recontrol of rents in Albany, chapter 555 of the laws of
1982 amending the general business law and the administrative code of
the city of New York relating to conversion of residential property to
cooperative or condominium ownership in the city of New York, chapter
402 of the laws of 1983 amending the general business law relating to
conversion of rental residential property to cooperative or condominium
ownership in certain municipalities in the counties of Nassau, Westches-
ter and Rockland and the rent regulation reform act of 1997, and to
amend chapter 4 of the laws of 2013 amending the real property tax law
and other laws relating to interim multiple dwellings in a city with a
population of one million or more, in relation to extending the effec-
tiveness thereof; to amend the emergency tenant protection act of nine-
teen seventy-four, the emergency housing rent control law, and the
administrative code of the city of New York, in relation to deregulation
thresholds; to amend the administrative code of the city of New York and
the emergency tenant protection act of nineteen seventy-four, in
relation to limiting rent increase after vacancy of a housing accommo-
dation; to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen seventy-four and the emer-
gency housing rent control law, in relation to adjustment of maximum
allowable rent; to amend chapter 97 of the laws of 2011, amending the
general municipal law and the education law, relating to establishing
limits upon school district and local government tax levies, in relation
to extending such provisions; and to amend the real property tax law, in
relation to extending certain provisions relating to exemption from
taxation of alterations and improvements to multiple dwellings; to amend
the tax law and part C of chapter 2 of the laws of 2005 amending the tax
law relating to exemptions from sales and use taxes, in relation to
extending certain provisions thereof; to amend the general city law and
the administrative code of the city of New York, in relation to extend-
ing certain provisions relating to relocation and employment assistance
credits; to amend the general city law and the administrative code of
the city of New York, in relation to extending certain provisions relat-
ing to specially eligible premises and special rebates; to amend the
administrative code of the city of New York, in relation to extending
certain provisions relating to exemptions and deductions from base rent;
to amend the real property tax law, in relation to extending certain
provisions relating to eligibility periods and requirements; to amend
the real property tax law, in relation to extending certain provisions
relating to eligibility periods and requirements, benefit periods and
applications for abatements; to amend the administrative code of the
city of New York, in relation to extending certain provisions relating
to a special reduction in determining the taxable base rent; to amend
the real property tax law and the administrative code of the city of New
York, in relation to extending certain provisions relating to applica-
tions for abatement of tax payments; to amend the real property tax law,
in relation to extending certain provision relating to partial tax
abatement for residential real property held in the cooperative or
condominium form of ownership in a city having a population of one
million or more; to amend the real property tax law, in relation to
extending certain provisions relating to exemptions of certain new or
substantially rehabilitated multiple dwellings from local taxation; to
amend the public housing law, in relation to the division of housing and
community renewal being authorized to establish a tenant protection
unit; and to amend the multiple dwelling law, in relation to interim
multiple dwellings (Part A); to amend the education law, in relation to
charter schools (Subpart A); making an appropriation to the education
department for reimbursement to non-public schools (Subpart B); to amend
the education law, in relation to the release of standardized test ques-
tions and answers, teacher evaluations and establishing a content review
committee; and making an appropriation therefor (Subpart C); to amend
chapter 91 of the laws of 2002, amending the education law and other
laws relating to reorganization of the New York city school construction
authority, board of education and community boards, in relation to the
effectiveness thereof; to amend chapter 345 of the laws of 2009, amend-
ing the education law and other laws relating to the New York city board
of education, chancellor, community councils and community superinten-
dents, in relation to the effectiveness thereof; and relating to the
education budget plan of the mayor of the city of New York (Subpart D);
and to amend the domestic relations law, in relation to determining who
may solemnize a marriage (Subpart E) (Part B); and Intentionally omitted
(Subpart A); to amend the tax law, in relation to establishing a proper-
ty tax relief credit; to amend part K of chapter 59 of the laws of 2014,
amending the tax law relating to providing an enhanced real property tax
circuit breaker, in relation to the effectiveness thereof (Subpart B);
to amend the education law and the general municipal law, in relation to
capital local expenditures and the quantity change factor (Subpart C);
to amend the tax law, in relation to extending the authority of the
county of Nassau to impose additional sales and compensating use taxes,
and extending local government assistance programs in Nassau county
(Subpart D); to amend the tax law and the vehicle and traffic law, in
relation to special motor vehicle use taxes imposed by the county of
Suffolk (Subpart E); to authorize assistance to the city of Yonkers to
support public schools in the city (Subpart F); making an appropriation
for money for services and expenses of the city of Rochester (Subpart
G); and appropriating money for certain municipal corporations and
school districts; and providing for the repeal of such provisions upon
expiration thereof (Subpart H) (Part C)
PURPOSE:
This bill would enact significant reforms in the areas of affordable
housing, education, and tax relief.
SUMMARY OF PROVISIONS:
Section 1 of the bill sets forth Parts A through C.
Part A would alleviate widespread uncertainty about the rights of land-
lords and tenants, as well as instability in the real estate market,
through comprehensive reforms to the State rent regulation system and
tax abatements to encourage development of residential buildings in New
York City via the following:
Extend various provisions of the laws that create the State rent regu-
lation system including State Rent Stabilization Law, City Rent Stabili-
zation Law, City Rent Control Law, and the Emergency Tenant Protection
Act (ETPA), as well as provisions of law related thereto, for four
years, to June 15, 2019, and make such provisions retroactive to June
15, 2015.
Increase the high rent decontrol threshold to $2700, with annual indexed
increases thereafter based on the percentage increase of the applicable
rent guidelines board increases, for various provisions of State Rent
Stabilization Law, City Rent Stabilization Law, City Rent Control Law,
and the ETPA, as well as various provisions of law related thereto.
Decrease the vacancy bonus for preferential rent to 5%, 10%, 15%, or
20%, depending on the length of tenancy in the unit rented at a prefer-
ential rate.
Increase civil penalties available subsequent to a finding of tenant
harassment by the Division of Housing and Community Renewal.
Increase the amortization period for major capital improvements and
mandate separate amortization schedules for buildings with more than
thirty-five, and less than thirty-five housing accommodations.
Extend the J-51 program until June 15, 2019.
Open the window for applications under the 2010 Loft Law expansion for
an additional two years and establish compliance language for loft units
that would be included.
Extend sections 467-a and 421-m, relating to co-op and condominium
conversions and rehabilitation of multiple dwellings for four years,
respectively.
Extend the property tax cap for four years to June 15, 2020.
Extend section 421-a of the real property tax law for seven months and
provide that the program will be extended until June 15, 2019 if repre-
sentatives of labor and real estate interest groups enter into a fully
executed memorandum of understanding regarding wage protections for
construction workers performing construction work on projects receiving
421-a benefits.
Amend section 421-a to: (i) increase the number of affordable units
being built under the program by providing for multiple affordable
development options; (ii) mandate the same entry be available for use by
all tenants; (iii) allow for the New York City Council to pass legis-
lation modifying the Geographic Exclusion Area that defines where
affordable units are mandated under this program; (iv) mandate wage
protections for building service workers at buildings participating in
the 421-a program; and (v) increase the commitment to affordability and
the length of the tax abatement to 35 years.
Extend the (i) lower Manhattan sales and use tax program; (ii) the relo-
cation and employment assistance program; (iii) the energy cost savings
program; (iv) the lower Manhattan energy program; (v) the commercial
rent tax reduction program; (vi) the commercial expansion program; (vii)
the commercial revitalization program; (viii) the industrial and commer-
cial abatement program; and (ix) the S-Corps program, each for two
years.
Establish a real property tax abatement.
Part B would: (i) enact critical reforms and support for public, non-
public, and charter schools; and (ii) allow a current or former governor
to solemnize marriages in the State of New York, by amending the educa-
tion law and domestic relations law, respectively, to:
Increase the number of charter schools available to be issued in New
York City to 50 and removes authorizer-specific caps so that the remain-
ing charters may be issued by the State University of New York (SUNY) or
the State Education Department (SED). This subpart would also enhance
and authorize charter schools' flexibility in hiring school personnel
and authorizes an optional enrollment preference for children of charter
school and charter management organization employees.
Appropriate $250 million to reimburse private schools for the costs of
performing State mandated services.
Appropriate $8.4 million to the SED to support increased disclosure of
State exam questions and answers. It would also clarify required compo-
nents of the State growth model for teacher evaluations, establish a
committee to review the content of all standardized tests, prohibit
teacher confidentiality agreements in certain circumstances, and direct
the SED Commissioner to undertake a comprehensive review of education
standards by June 30, 2016.
Extend mayoral control in New York City for one year to June 30, 2016.
Amend the current law to allow the current or a former governor to the
list of officials who may solemnize marriages in the State of New York.
Part C would:
Establish a new Property Tax Relief Credit against the personal income
tax for tax years 2016-2019.
The new credit would be available as an advance payment to income-eligi-
ble resident taxpayers who own and reside in property receiving basic or
enhanced STAR located outside of New York City.
For 2016, the credit would be $130 for taxpayers in the metropolitan
commuter transportation district (MCTD) with household incomes up to
$275,000, and $185 for taxpayers outside the MCTD with household incomes
up to $200,000.
For subsequent tax years, the credit would be calculated as a percentage
of the property STAR saving, using a progressive income-based percentage
schedule: for a taxpayer with income below $75,000, the credit will be
28% of the STAR savings for 2017 and will grow to 85% of the STAR
savings for 2019.
Extend the expiration of the enhanced real property tax circuit breaker
from 2016 to 2020.
Authorize the Commissioner of the Department of Taxation and Finance
(DTF) to provide, by rules and regulations, for the adjustment of a
school district's capital local expenditures to reflect the district's
share of capital expenditures made by a Board of Cooperative Educational
Services (BOCES).
Authorize the DTF Commissioner to provide, by rules and regulations, for
the adjustment of quantity change factor for a local government or
school district to reflect development on tax-exempt property within the
jurisdiction.
Extend Nassau County's ability to impose additional sales and compensat-
ing use taxes for two years and allow Suffolk County to impose a special
motor vehicle use tax.
Establish a special fund known as the "local ad valorem mitigation fund"
in the custody of the Urban Development Corporation.
Provide $25,000,000 in municipal aid to the City of Yonkers to support
public schools in the city.
Provide $6,000,000 in funding for the City of Rochester to support
services enhancing anti-poverty programs.
EXISTING LAW:
This legislation would amend existing provisions of the Emergency Hous-
ing Rent Control Law, the General Business Law, the Real Property Tax
Law, the Emergency Tenant Protection Act, the Administrative Code the
City of New York, the Public Housing Law, the Multiple Dwelling Law, of
the Education Law, the General Municipal Law, and the Vehicle and Traf-
fic Law.
STATEMENT IN SUPPORT:
Part A:
Rent regulations laws are critical to the well-being of New Yorkers who
live in approximately one million rent regulated homes. Few things are
more fundamental than having a stable, affordable home. Rent regulation
laws prevent landlords of rent regulated units from harassing low-income
tenants, raising rents improperly, and engaging in deceptive business
practices.
Passage of this legislation would avoid widespread uncertainty about the
rights of owners and tenants and stop the rents of thousands of New
Yorkers from increasing to a point at which they could no longer afford
to live in their homes, thus averting a crisis to which local govern-
ments could not respond adequately.
Passage of various tax incentives and tax abatements as provided in this
legislation would also encourage development of affordable units and
would require wage protections for building services workers.
Part B:
Charter schools represent a critical component of parental choice in
education, and many charter schools have shown outstanding results in
student achievement. This legislation would increase the number of char-
ter schools available to be issued in New York City, ensuring that this
category of schools can continue to increase access and choice in commu-
nities across New York City. This legislation would also enhance flexi-
bility in educator hiring at charters schools, and encourages community
building by allowing an optional enrollment preference for children of
charter school employees.
Non-public schools serve over 400,000 students across the state - nearly
15% of the total public school population. The State Education Depart-
ment (SED) currently reimburses non-public schools for the cost of
performing certain State mandated functions. This legislation would add
$250 million available for this purpose, to ensure that schools are
accurately reimbursed for their costs and can continue to survive and
provide important educational opportunities.
Over the last several years, parents, students and teachers have been
frustrated by the lack of transparency of New York State's testing
regime. In order to allow for an increased disclosure of state exam
questions and answers, this legislation would provide $8.4 million in
new funding to the SED. In addition, this bill would clarify required
components of the state growth model for teacher evaluations; would
establish a committee to review the content of all standardized tests;
would prohibit teacher confidentiality agreements in certain circum-
stances; and would direct the SED Commissioner to undertake a comprehen-
sive review of education standards by June 30, 2016.
Mayoral control of New York City was first enacted in 2002, and - absent
this legislation - would expire June 30, 2015. This legislation would
renew all provisions of mayoral control for an additional year, to June
30, 2015.
This bill would also allow the current or a former governor to solemnize
marriages.
Part C:
Since its enactment in 2011, the real property tax cap has dramatically
reduced the growth in local property taxes: as compared with the 10 year
period prior to 2011, the real property tax cap has reduced the rate of
growth in local taxes by nearly 60%. This bill would extend the tax cap
for an additional four years, ensuring that this critical program will
continue to control the growth of property taxes. The bill would also
authorize the DTF Commissioner to adopt regulations to make minor
adjustments to the cap to reflect BOCES capital expenses that are borne
by school districts and the impact of tax-exempt property improvements.
Even with the tax cap in place, New York's homeowners pay the highest
property taxes in the nation. This bill would establish a new Real Prop-
erty Tax Credit to provide over $3 billion in progressive property tax
relief to low- and middle-income homeowners outside New York City over
the next four years. This bill would also extend the enhanced real prop-
erty circuit breaker, which provides progressive property tax relief to
New York City homeowners and renters, for four years.
This bill would further establish a special fund known as the "local ad
valorem mitigation fund" in the custody of the urban development corpo-
ration. It would also provide relief for the Counties of Nassau and
Suffolk, and the Cities of Yonkers and Rochester.
LEGISLATIVE HISTORY
This is a new bill.
BUDGET IMPLICATIONS
Part A: The legislation is expected to have no material impact on the
State Financial Plan.
Part B: This legislation would provide new appropriations of $250
million to reimburse private schools for the costs of performing State
mandated services and $8.4 million to support increased disclosure of
state exam questions and answers by the State Education Department.
The Yonkers School District would receive $25 million in emergency aid
from excess balances available in the State of New York Mortgage Agen-
cy's Mortgage Insurance Fund. There will be no impact on the State
Financial Plan.
The City of Rochester would receive an additional $6 million in General
Fund support, offset by other revenues available to the State. There
will be no net impact on the Financial Plan
The New York State Energy Research and Development Authority (NYSERDA)
would make available $19 million to support these appropriations. There
will be no net impact on the Financial Plan.
Part C: The legislation would provide for a property tax relief credit
that will result in additional Financial Plan costs, beginning in Fiscal
Year 2017. The expected costs are approximately $400 million in Fiscal
Year 2016-17, $450 million in Fiscal Year 2017-18, $950 million in
Fiscal Year 2018-19, and $1.3 billion in Fiscal Year 2019-20 and there-
after. In addition, the extension of the enhanced New York City circuit
breaker results in additional Financial Plan costs of $85 million annu-
ally, starting in Fiscal Year 2017-18.
EFFECTIVE DATE
Immediately.
