Extends certain time periods relating to exemption from taxation of alterations and improvements to multiple dwellings to eliminate fire and health hazards.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7125
SPONSOR: Braunstein TITLE OF BILL:
An act to amend the real property tax law, in relation to extending
certain time periods relating to exemption from taxation of alterations
and improvements to multiple dwellings to eliminate fire and health
hazards
PURPOSE OR GENERAL IDEA OF BILL:
To extend the J-51 property tax exemption and abatement program to 2022.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the opening paragraph of paragraph (a) of subdivision 1
of section 489 of the Real Property Tax Law to extend the authorization
of the J-51 program to 2022.
Section 2 amends the closing paragraph of subparagraph 6 of paragraph
(a) of subdivision 1 of section 489 of the Real Property Tax Law to
state that all alterations or improvements must be completed prior to
June 30, 2022.
Section 3 contains the effective date.
JUSTIFICATION:
J-51 is a property tax exemption and abatement received by property
owners for renovating a residential apartment building or for converting
commercial structures into residential units. Currently eligible
projects must be completed prior to June 30, 2021 in order to receive
the J-51 benefit. This legislation extends the project completion dead-
line to June 30, 2022 as well as extends New York City's authorization
to enact the program through 2022.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7125
2021-2022 Regular Sessions
IN ASSEMBLY
April 23, 2021
___________
Introduced by M. of A. BRAUNSTEIN -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to extending
certain time periods relating to exemption from taxation of alter-
ations and improvements to multiple dwellings to eliminate fire and
health hazards
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The opening paragraph of paragraph (a) of subdivision 1 of
2 section 489 of the real property tax law, as amended by section 1 of
3 item RRR of subpart B of part XXX of chapter 58 of the laws of 2020, is
4 amended to read as follows:
5 Any city to which the multiple dwelling law is applicable, acting
6 through its local legislative body or other governing agency, is hereby
7 authorized and empowered, to and including January first, two thousand
8 [twenty-one] twenty-two, to adopt and amend local laws or ordinances
9 providing that any increase in assessed valuation of real property shall
10 be exempt from taxation for local purposes, as provided herein, to the
11 extent such increase results from:
12 § 2. The closing paragraph of subparagraph 6 of paragraph (a) of
13 subdivision 1 of section 489 of the real property tax law, as amended by
14 section 2 of item RRR of subpart B of part XXX of chapter 58 of the laws
15 of 2020, is amended to read as follows:
16 Such conversion, alterations or improvements shall be completed within
17 thirty months after the date on which same shall be started except that
18 such thirty month limitation shall not apply to conversions of residen-
19 tial units which are registered with the loft board in accordance with
20 article seven-C of the multiple dwelling law pursuant to subparagraph
21 one of this paragraph. Notwithstanding the foregoing, a sixty month
22 period for completion shall be available for alterations or improvements
23 undertaken by a housing development fund company organized pursuant to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10959-01-1
A. 7125 2
1 article eleven of the private housing finance law, which are carried out
2 with the substantial assistance of grants, loans or subsidies from any
3 federal, state or local governmental agency or instrumentality or which
4 are carried out in a property transferred from such city if alterations
5 and improvements are completed within seven years after the date of
6 transfer. In addition, the local housing agency is hereby empowered to
7 grant an extension of the period of completion for any project carried
8 out with the substantial assistance of grants, loans or subsidies from
9 any federal, state or local governmental agency or instrumentality, if
10 such alterations or improvements are completed within sixty months from
11 commencement of construction. Provided, further, that such conversion,
12 alterations or improvements shall in any event be completed prior to
13 June thirtieth, two thousand [twenty-one] twenty-two. Exemption for
14 conversions, alterations or improvements pursuant to subparagraph one,
15 two, three or four of this paragraph shall continue for a period not to
16 exceed fourteen years and begin no sooner than the first quarterly tax
17 bill immediately following the completion of such conversion, alter-
18 ations or improvements. Exemption for alterations or improvements pursu-
19 ant to this subparagraph or subparagraph five of this paragraph shall
20 continue for a period not to exceed thirty-four years and shall begin no
21 sooner than the first quarterly tax bill immediately following the
22 completion of such alterations or improvements. Such exemption shall be
23 equal to the increase in the valuation which is subject to exemption in
24 full or proportionally under this subdivision for ten or thirty years,
25 whichever is applicable. After such period of time, the amount of such
26 exempted assessed valuation of such improvements shall be reduced by
27 twenty percent in each succeeding year until the assessed value of the
28 improvements are fully taxable. Provided, however, exemption for any
29 conversion, alterations or improvements which are aided by a loan or
30 grant under article eight, eight-A, eleven, twelve, fifteen or twenty-
31 two of the private housing finance law, section six hundred ninety-six-a
32 or section ninety-nine-h of the general municipal law, or section three
33 hundred twelve of the housing act of nineteen hundred sixty-four (42
34 U.S.C.A. 1452b), or the Cranston-Gonzalez national affordable housing
35 act (42 U.S.C.A. 12701 et. seq.), or started after July first, nineteen
36 hundred eighty-three by a housing development fund company organized
37 pursuant to article eleven of the private housing finance law which are
38 carried out with the substantial assistance of grants, loans or subsi-
39 dies from any federal, state or local governmental agency or instrumen-
40 tality or which are carried out in a property transferred from any city
41 and where alterations and improvements are completed within seven years
42 after the date of transfer may commence at the beginning of any tax
43 quarter subsequent to the start of such conversion, alterations or
44 improvements and prior to the completion of such conversion, alterations
45 or improvements.
46 § 3. This act shall take effect immediately.
