Add Art 16 §§480 - 482, RP L; amd §§292 & 296, Exec L; add §421-p, RPT L
Establishes an accessory dwelling unit incentive program to encourage the creation of accessory dwelling units; includes accessory dwelling units in the definition of the term housing accommodations in the human rights law; provides for a temporary property tax exemption on the increase in value of property resulting from the addition of an accessory dwelling unit
STATE OF NEW YORK
________________________________________________________________________
5172--A
2023-2024 Regular Sessions
IN SENATE
February 23, 2023
___________
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the real property law, in relation to establishing an
accessory dwelling unit incentive program; to amend the executive law,
in relation to including an accessory dwelling unit in the term hous-
ing accommodations in the human rights law; and to amend the real
property tax law, in relation to providing a tax exemption on the
increase in value of property resulting from the addition of an acces-
sory dwelling unit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property law is amended by adding a new article 16
2 to read as follows:
3 ARTICLE 16
4 ACCESSORY DWELLING UNITS
5 Section 480. Definitions.
6 481. Accessory dwelling unit incentive program and local laws.
7 482. Low- and moderate-income homeowners program.
8 § 480. Definitions. As used in this article, unless the context other-
9 wise requires, the following terms shall have the following meanings:
10 1. "Accessory dwelling unit" shall mean an attached or a detached
11 residential dwelling unit that provides complete independent living
12 facilities for one or more persons which is located on a lot with a
13 proposed or existing primary residence and shall include permanent
14 provisions for living, sleeping, eating, cooking, and sanitation on the
15 same lot as the single-family or multi-family dwelling.
16 2. "Local government" shall mean a city, town or village.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09847-03-3
S. 5172--A 2
1 3. "Low-income homeowners" shall mean homeowners with an income,
2 adjusted for family size, not exceeding eighty percent of the area medi-
3 an income.
4 4. "Moderate-income homeowners" shall mean homeowners with an income,
5 adjusted for family size, not exceeding one hundred twenty percent of
6 the area median income as defined by the division.
7 5. "Nonconforming zoning condition" shall mean a physical improvement
8 on a property that does not conform with current zoning standards.
9 6. "Proposed dwelling" shall mean a dwelling that is the subject of a
10 permit application and that meets the requirements for permitting.
11 7. "Division" shall mean the New York state division of housing and
12 community renewal.
13 § 481. Accessory dwelling unit incentive program and local laws. 1.
14 Within one hundred eighty days of the effective date of this article,
15 the division shall establish an opt-in program for local governments who
16 already have or who enact a local law or ordinance that meets the
17 requirements of subdivision two of this section which encourages the
18 creation of accessory dwelling units. A local government shall have five
19 years from the date such program is established to enact such local law
20 or ordinance to qualify for the program.
21 2. (a) To qualify for the program established pursuant to subdivision
22 one of this section, a local law or ordinance shall:
23 (i) Designate areas within the jurisdiction of the local government
24 where accessory dwelling units shall be permitted. Designated areas
25 shall include all areas zoned for single-family or multi-family residen-
26 tial use, and all lots with an existing residential use.
27 (ii) Provide for protections for existing illegal accessory dwelling
28 units to aid in the conversion of such units to become legal and in
29 compliance with state and local regulations, including but not limited
30 to: (1) a mechanism for the conversion of an illegal accessory dwelling
31 unit to be a legal unit, provided such unit is in compliance with all
32 applicable fire and safety codes; and (2) protections for tenants of
33 illegal accessory dwelling units from unreasonable rent increases.
34 (iii) Provide for a streamlined approval process involving no more
35 than one meeting with the applicable approving authority, and limiting
36 the cost of any necessary applications and permits to a total of five
37 hundred dollars.
38 (iv) Provide that sewer and septic hookups shall be governed under the
39 applicable existing local requirements.
40 (b) A qualifying local law or ordinance may:
41 (i) Require owner occupancy in either the primary or accessory dwell-
42 ing unit.
43 (ii) Set a minimum lease duration for accessory dwelling units.
44 (iii) Limit the total build out to the existing allowable square-foot-
45 under-floor ratio and lot coverage, consistent with existing setback for
46 other accessory uses.
47 (iv) Set minimum or maximum size limits for an accessory dwelling
48 unit.
49 (c) To qualify for the program established pursuant to subdivision one
50 of this section, a local law or ordinance shall not:
51 (i) Impose an off-street parking requirement on an accessory dwelling
52 unit, except where no adjacent public street permits year-round
53 on-street parking and the accessory dwelling unit is greater than one-
54 half mile from a subway stop, rail station or bus stop. For purposes of
55 this subparagraph, an adjacent public street shall be considered as
S. 5172--A 3
1 permitting year-round on-street parking notwithstanding rules that
2 prohibit parking during limited hours or on certain days of the week.
3 (ii) Impose undue or unnecessary fire and safety codes on accessory
4 dwelling units.
5 (iii) Require more than one point of exterior access by door to an
6 accessory dwelling unit.
7 3. To opt-in to the program established pursuant to subdivision one of
8 this section a local government shall submit a copy of its local law or
9 ordinance to the division. Within ninety days of receipt of a local
10 government's law or ordinance, the division shall submit written find-
11 ings to the local government as to whether the local government's local
12 law or ordinance qualifies for the program.
13 4. All local governments who opt-in to the program and are determined
14 by the division to have a qualifying local law or ordinance shall be
15 eligible for a ten percent increase of points on such local government's
16 consolidated funding application, a ten percent increase in aid and
17 incentives for municipalities and aid and incentives for municipalities
18 related payments, increased eligibility for individual infrastructure,
19 transportation, parks, and economic development grants.
20 § 482. Low- and moderate-income homeowners program. 1. Within one
21 hundred eighty days of the effective date of this article, the division
22 shall establish a lending program to assist low-income homeowners and
23 moderate-income homeowners in securing financing for the creation of
24 accessory dwelling units.
25 2. An accessory dwelling unit financed with the assistance of such
26 program shall, if such assistance is in the form of a forgivable grant
27 at a below-market rate for a period of no less than thirty years and if
28 any such assistance is in the form of a repayable loan, be offered for
29 rent at a below-market rate for a period of fifteen years.
30 3. Such program shall be funded through capital projects appropri-
31 ations and reappropriations set forth in the state fiscal year housing
32 program.
33 4. Within one hundred eighty days of the effective date of this arti-
34 cle, the division shall establish a program to provide technical assist-
35 ance to all homeowners seeking to create an accessory dwelling unit, and
36 to protect tenants of accessory dwelling units against discrimination,
37 unreasonable rent increases and unwarranted evictions.
38 5. An accessory dwelling unit financed with the assistance of such
39 program shall be limited to an annual maximum rent increase of the lower
40 of (a) three percent or (b) one and one-half times the annual percentage
41 change in the consumer price index for the region in which the accessory
42 dwelling unit is located.
43 6. The division shall promulgate program criteria and guidelines
44 necessary to carry out such program.
45 § 2. Section 292 of the executive law is amended by adding a new
46 subdivision 42 to read as follows:
47 42. The term "housing accommodation" as used in this article shall
48 include an accessory dwelling unit as defined in subdivision one of
49 section four hundred eighty of the real property law.
50 § 3. Paragraph (a) of subdivision 1 of section 296 of the executive
51 law, as separately amended by chapters 202 and 748 of the laws of 2022,
52 is amended to read as follows:
53 (a) For an employer or licensing agency, because of an individual's
54 age, race, creed, color, national origin, citizenship or immigration
55 status, sexual orientation, gender identity or expression, military
56 status, sex, disability, predisposing genetic characteristics, familial
S. 5172--A 4
1 status, marital status, or status as a victim of domestic violence, to
2 refuse to hire or employ or to bar or to discharge from employment such
3 individual or to discriminate against such individual in compensation or
4 in terms, conditions or privileges of employment. In the case of an
5 accessory dwelling unit as defined in subdivision one of section four
6 hundred eighty of the real property law, the exemption from the
7 provisions of this paragraph for the rental of a housing accommodation
8 in a building which contains housing accommodations for not more than
9 two families living independently of each other, if the owner resides in
10 one of such accommodations, shall not apply.
11 § 4. The real property tax law is amended by adding a new section
12 421-p to read as follows:
13 § 421-p. Exemption of capital improvements to residential new
14 construction involving the creation of accessory dwelling units. 1.
15 Residential buildings reconstructed, altered, improved, or newly
16 constructed in order to create one or more additional residential dwell-
17 ing units on the same parcel as a pre-existing residential building to
18 provide independent living facilities for one or more persons subsequent
19 to the effective date of a local law or resolution enacted pursuant to
20 this section shall be exempt from taxation and special ad valorem levies
21 to the extent provided hereinafter. After a public hearing, the govern-
22 ing board of a county, city, town or village may adopt a local law and a
23 school district, other than a school district subject to article fifty-
24 two of the education law, may adopt a resolution to grant the exemption
25 authorized pursuant to this section. A copy of such local law or resol-
26 ution shall be filed with the commissioner and the assessor of such
27 county, city, town or village who prepares the assessment roll on which
28 the taxes of such county, city, town, village or school district are
29 levied.
30 2. (a) Such buildings shall be exempt for a period of five years to
31 the extent of one hundred per centum of the increase in assessed value
32 thereof attributable to such reconstruction, alteration, improvement, or
33 new construction for such additional residential unit or units that
34 provide independent living facilities for one or more persons, and for
35 an additional period of five years subject to the following:
36 (i) The extent of such exemption shall be decreased by twenty-five per
37 centum of the "exemption base" for each of the first three years during
38 such additional period and shall be decreased by a further ten per
39 centum of the "exemption base" during each of the final two years of
40 such additional period. The exemption shall expire at the end of the
41 extended period. The "exemption base" shall be the increase in assessed
42 value as determined in the initial year of the term of the exemption,
43 except as provided in subparagraph (ii) of this paragraph.
44 (ii) In any year in which a change in level of assessment of fifteen
45 percent or more is certified for a final assessment roll pursuant to the
46 rules of the commissioner, the exemption base shall be multiplied by a
47 fraction, the numerator of which shall be the total assessed value of
48 the parcel on such final assessment roll (after accounting for any phys-
49 ical or quantity changes to the parcel since the immediately preceding
50 assessment roll), and the denominator of which shall be the total
51 assessed value of the parcel on the immediately preceding final assess-
52 ment roll. The result shall be the new exemption base. The exemption
53 shall thereupon be recomputed to take into account the new exemption
54 base, notwithstanding the fact that the assessor receives certification
55 of the change in level of assessment after the completion, verification
56 and filing of the final assessment roll. In the event the assessor does
S. 5172--A 5
1 not have custody of the roll when such certification is received, the
2 assessor shall certify the recomputed exemption to the local officers
3 having custody and control of the roll, and such local officers are
4 hereby directed and authorized to enter the recomputed exemption certi-
5 fied by the assessor on the roll. The assessor shall give written notice
6 of such recomputed exemption to the property owner, who may, if he or
7 she believes that the exemption was recomputed incorrectly, apply for a
8 correction in the manner provided by title three of article five of this
9 chapter for the correction of clerical errors.
10 (iii) Such exemption shall be limited to two hundred thousand dollars
11 in increased market value of the property attributable to such recon-
12 struction, alteration, improvement, or new construction and any increase
13 in market value greater than such amount shall not be eligible for the
14 exemption pursuant to this section. For the purposes of this section,
15 the market value of the reconstruction, alteration, improvement, or new
16 construction as authorized by subdivision one of this section shall be
17 equal to the increased assessed value attributable to such recon-
18 struction, alteration, improvement, or new construction divided by the
19 class one ratio in a special assessing unit or the most recently estab-
20 lished state equalization rate or special equalization rate in the
21 remainder of the state, except where the state equalization rate or
22 special equalization rate equals or exceeds ninety-five percent, in
23 which case the increase in assessed value attributable to such recon-
24 struction, alteration, improvement, or new construction shall be deemed
25 to equal the market value of such reconstruction, alteration, improve-
26 ment, or new construction.
27 (b) No such exemption shall be granted for reconstruction, alter-
28 ations, improvements, or new construction unless:
29 (i) such reconstruction, alteration, improvement, or new construction
30 was commenced subsequent to the effective date of the local law or
31 resolution adopted pursuant to subdivision one of this section; and
32 (ii) the value of such reconstruction, alteration, improvement, or new
33 construction exceeds three thousand dollars; and
34 (iii) such reconstruction, alteration, improvement, or new
35 construction created one or more additional residential dwelling units
36 on the same parcel as the pre-existing residential building to provide
37 independent living facilities for one or more persons.
38 (c) For purposes of this section the terms reconstruction, alteration,
39 improvement, and new construction shall not include ordinary maintenance
40 and repairs.
41 3. Such exemption shall be granted only upon application by the owner
42 of such building on a form prescribed by the commissioner. The applica-
43 tion shall be filed with the assessor of the city, town, village or
44 county having the power to assess property for taxation on or before the
45 appropriate taxable status date of such city, town, village or county.
46 4. If satisfied that the applicant is entitled to an exemption pursu-
47 ant to this section, the assessor shall approve the application and such
48 building shall thereafter be exempt from taxation and special ad valorem
49 levies as herein provided commencing with the assessment roll prepared
50 on the basis of the taxable status date referred to in subdivision three
51 of this section. The assessed value of any exemption granted pursuant to
52 this section shall be entered by the assessor on the assessment roll
53 with the taxable property, with the amount of the exemption shown in a
54 separate column.
S. 5172--A 6
1 5. For the purposes of this section, a residential building shall mean
2 any building or structure designed and occupied exclusively for residen-
3 tial purposes by not more than two families.
4 6. In the event that a building granted an exemption pursuant to this
5 section ceases to be used primarily for residential purposes, or title
6 thereto is transferred to other than the heirs or distributees of the
7 owner, the exemption granted pursuant to this section shall cease.
8 7. (a) A county, city, town or village may, by its local law, or
9 school district, by its resolution:
10 (i) reduce the per centum of exemption otherwise allowed pursuant to
11 this section; and
12 (ii) limit eligibility for the exemption to those forms of recon-
13 struction, alterations, improvements, or new construction as are
14 prescribed in such local law or resolution.
15 (b) No such local law or resolution shall repeal an exemption granted
16 pursuant to this section until the expiration of the period for which
17 such exemption was granted.
18 § 5. This act shall take effect immediately; provided however, that
19 section four of this act shall apply to assessment rolls based on taxa-
20 ble status dates occurring on or after such effective date.
