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A01931 Summary:

BILL NOA01931A
 
SAME ASSAME AS S00260-A
 
SPONSORRosenthal L
 
COSPNSR
 
MLTSPNSR
 
Rpld §421-a, amd §§421-m, 467-e & 489, RPT L; rpld §§11-245, 11-245.1, 11-245.1-a & 11-245.1-b, amd §§6-130, 11-239 & 26-901, NYC Ad Cd; amd §654-d, Priv Hous Fin L
 
Relates to the affordable New York housing program; makes necessary technical and conforming changes relating thereto.
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A01931 Actions:

BILL NOA01931A
 
01/13/2021referred to real property taxation
01/05/2022referred to real property taxation
02/01/2022amend and recommit to real property taxation
02/01/2022print number 1931a
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A01931 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1931A
 
SPONSOR: Rosenthal L
  TITLE OF BILL: An act to repeal section 421-a of the real property tax law, relating to the affordable New York housing program; to amend the real property tax law, the administrative code of the city of New York, and the private housing finance law, in relation to making necessary technical and conforming changes; and to repeal certain sections of the administrative code of the city of New York relating thereto   PURPOSE: This legislation will repeal the 421-a tax exemption.   SUMMARY OF SPECIFIC PROVISIONS: Section one repeals section 421-a of the real property tax law. Section two repeals section 11-245 of the administrative code of the city of New York. Section three repeals section 11-245.1 of the admin- istrative code of the city of New York. Section four repeals section 11-245.1-a of the administrative code of the city of New York. Section five repeals section 11-245.1-b of the administrative code of the city of New York. Section six amends paragraph 11 of subdivision a of section 6-130 of the administrative code of the city of New York. Section seven amends subdivision 1 of section 11-239 of the administra- tive code of the city of New York. Section eight amends subdivision h of section 26-901 of the administra- tive code of the city of New York. Section nine amends subdivision 18 of section 654-d of the private hous- ing finance law. Section ten amends subdivision 6 of section 421-m of the real property tax law. Section eleven amends subdivision 1 of section 467-e of the real proper- ty tax law. Section twelve amends paragraph (b) of subdivision 1-a of section 489 of the real property tax law. Section thirteen sets forth the effective date.   JUSTIFICATION: The 421-a tax exemption was created in the 1970s to encourage the construction of affordable housing throughout Manhattan and later, other areas of New York City. The 421-a program is available to the developer of any new residential building, provided that it will contain more than five units and it reserves at least 20% of those units for affordable housing, meaning they are available to tenants who make 60% of the federally determined "area median income." However, the cost of renting these units still far exceeds what many New Yorkers can afford, partic- ularly at a time when the cost of living has continued to rise but the average income has remained stagnant. As a result, New York City has given out more than $1.2 billion annually through tax breaks to develop- ers who have failed to provide housing that is truly affordable to the average New Yorker. New York City is currently facing the most Ľurgent homelessness crisis since the Great Depression and the 2018 New York City Housing and Vacan- cy Survey reported that the median income of all households was just $57,500, yet the average rent exceeds $1,600. New York City needs hous- ing that is truly affordable, and the 421-a program does not provide it. This legislation would repeal the 421-a tax exemption, allowing New York City to instead invest this funding into housing that is available to more low-income and working-class families.   LEGISLATIVE HISTORY: 2019-20: A.8849 - Referred to Real Property Taxation   FISCAL IMPLICATIONS: Undetermined.   EFFECTIVE DATE: This bill shall take effect immediately.
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A01931 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1931--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 13, 2021
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Real Property Taxation -- recommitted to the Committee on
          Real Property Taxation in accordance with Assembly Rule 3, sec.  2  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        AN ACT to repeal section 421-a of the real property tax law, relating to
          the affordable New York housing program; to amend  the  real  property
          tax  law,  the  administrative  code  of the city of New York, and the
          private housing finance law, in relation to making necessary technical
          and conforming changes; and to repeal certain sections of the adminis-
          trative code of the city of New York relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 421-a of the real property tax law is REPEALED.
     2    § 2. Section 11-245 of the administrative code of the city of New York
     3  is REPEALED.
     4    §  3.  Section  11-245.1 of the administrative code of the city of New
     5  York is REPEALED.
     6    § 4. Section 11-245.1-a of the administrative code of the city of  New
     7  York is REPEALED.
     8    §  5. Section 11-245.1-b of the administrative code of the city of New
     9  York is REPEALED.
    10    § 6. The thirteenth undesignated paragraph of subdivision a of section
    11  6-130 of the administrative code of the city of New York, as amended  by
    12  local  law  number  212  of  the  city of New York for the year 2019, is
    13  amended to read as follows:
    14    "Lease" means any agreement whereby  a  contracting  agency  contracts
    15  for,  or  leases  or rents, commercial office space or commercial office
    16  facilities of 10,000 square feet or more from a non-governmental  entity
    17  provided the city, whether through a single agreement or multiple agree-
    18  ments,  leases  or  rents  no  less  than 51 percent of the total square
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00832-03-2

        A. 1931--A                          2
 
     1  footage of the building to which the lease applies, or if such space  or
     2  such  facility  is  entirely  located  within the geographic area in the
     3  borough of Staten Island[, or in an area not  defined  as  an  exclusion
     4  area pursuant to section 421-a of the real property tax law] on the date
     5  of enactment of the local law that added this section, then no less than
     6  80  percent  of  the  total  square footage of the building to which the
     7  lease applies. Such agreements do not include  agreements  between  not-
     8  for-profit organizations and a contracting agency.
     9    § 7. Subdivision 1 of section 11-239 of the administrative code of the
    10  city  of  New York, as amended by local law number 40 of the city of New
    11  York for the year 2007, is amended to read as follows:
    12    1. For fiscal years beginning the first of July,  two  thousand  three
    13  and  ending  the  thirtieth  of June, two thousand nine, a rebate in the
    14  amount of the lesser of four hundred dollars or the annual tax liability
    15  imposed on the property shall be paid to an owner or  tenant-stockholder
    16  who,  as of the date the application provided for in subdivision four of
    17  this section is due, owns a one, two or  three  family  residence  or  a
    18  dwelling unit in residential property held in the condominium or cooper-
    19  ative form of ownership that is the owner or tenant-stockholder's prima-
    20  ry  residence  and  meets  all  other  eligibility  requirements of this
    21  section. If, with respect to the fiscal year beginning on the  first  of
    22  July,  two thousand eight and ending on the thirtieth of June, two thou-
    23  sand nine, an increase in average real property tax rates  would  other-
    24  wise  be  necessary  in  the  resolution of the city council fixing real
    25  property tax rates for such fiscal year pursuant to  the  charter,  then
    26  the  rebate  to  be paid for such fiscal year shall be reduced or elimi-
    27  nated as follows: where the sum to be raised by such  increase  is  less
    28  than  seven  hundred  fifty  million  dollars, then such rebate shall be
    29  reduced by fifty cents for each dollar of increase, and where the sum to
    30  be raised by such increase is seven hundred  fifty  million  dollars  or
    31  more,  then such rebate shall be eliminated. Notwithstanding anything to
    32  the contrary in sections [four hundred twenty-one-a,] four hundred twen-
    33  ty-one-b or four hundred twenty-one-g of the real property tax  law,  an
    34  owner  or tenant-stockholder whose property is receiving benefits pursu-
    35  ant to such sections shall not be prohibited  from  receiving  a  rebate
    36  pursuant  to  this section if such owner or tenant-stockholder is other-
    37  wise eligible to receive such rebate.  Tenant-stockholders  of  dwelling
    38  units  in  a  cooperative apartment corporation incorporated as a mutual
    39  company pursuant to article two, four, five or  eleven  of  the  private
    40  housing  finance  law  shall not be entitled to the rebate authorized by
    41  this section. Such rebate shall be paid by the commissioner  of  finance
    42  to  eligible  owners  or  tenant-stockholders  in  accordance with rules
    43  promulgated by the commissioner of finance.
    44    § 8. Subdivision h of section 26-901 of the administrative code of the
    45  city of New York, as added by local law number 44 of  the  city  of  New
    46  York for the year 2012, is amended to read as follows:
    47    h. "Housing development project" means construction, rehabilitation or
    48  alteration of any residential building, residential facility or residen-
    49  tial  structure  by  a developer (1) which creates or preserves at least
    50  one dwelling unit; (2) which is funded in  whole  or  in  part  by  city
    51  financial  assistance  other  than  non-discretionary  tax abatements or
    52  benefits approved or administered in accordance with [sections 421-a  or
    53  489] section four hundred eighty-nine of the [New York state] real prop-
    54  erty  tax  law  or other similar programs and (3) where the developer of
    55  such project was not selected more than five years prior to  the  effec-
    56  tive  date of this chapter. The term "housing development project" shall

        A. 1931--A                          3

     1  not include emergency repairs performed by or on behalf of  the  depart-
     2  ment  pursuant  to section 27-2125 of this code, work performed by or on
     3  behalf of the department pursuant to section 27-2153 of this code, demo-
     4  lition  work  performed  by  or  on behalf of the department pursuant to
     5  articles two hundred fifteen or two hundred sixteen of  chapter  two  of
     6  title twenty-eight of this code, or work funded by the department pursu-
     7  ant  to  article [seven-a] seven-A of the [New York state] real property
     8  actions and proceedings law.
     9    § 9. Subdivision 18 of section 654-d of the  private  housing  finance
    10  law,  as  amended by chapter 703 of the laws of 1992, is amended to read
    11  as follows:
    12    18. Rentals. Notwithstanding the  provisions  of,  or  any  regulation
    13  promulgated  pursuant  to,  the  emergency housing rent control law, the
    14  local emergency housing rent control act or local law  enacted  pursuant
    15  thereto, all dwelling units in a multiple dwelling the rehabilitation of
    16  which  commenced  after  July  first, nineteen hundred seventy-seven and
    17  which is financed by a mortgage loan insured by  the  subsidiary  corpo-
    18  ration  (including,  but not limited to, mortgage loans insured pursuant
    19  to mortgage insurance contracts and housing insurance contracts), except
    20  for dwelling units occupied by reason of ownership of stock in a cooper-
    21  ative and except for dwelling units that constitute condominiums,  shall
    22  be subject to the rent stabilization law of nineteen hundred sixty-nine,
    23  beginning immediately after initial rents, as established under applica-
    24  ble  provisions  of  this chapter, [section four hundred twenty-one-a of
    25  the real property tax law,] section four hundred eighty-nine of the real
    26  property tax law and/or subparagraph (m) of paragraph one of subdivision
    27  g of section 26-405 of the administrative code of the city of  New  York
    28  for  such  dwelling units to become effective on the basis of such reha-
    29  bilitation, provided that any occupant in possession of a dwelling  unit
    30  that  first  becomes  subject  to the rent stabilization law of nineteen
    31  hundred sixty-nine pursuant to this section shall be offered a  two-year
    32  lease notwithstanding any contrary provisions of, or regulations adopted
    33  pursuant  to,  such  rent  stabilization law, at the initial rent estab-
    34  lished for such dwelling unit and provided further  that  such  dwelling
    35  units,  other  than those dwelling units, the initial rents of which are
    36  established under subparagraph (m) of paragraph one of subdivision g  of
    37  section 26-405 of the administrative code of the city of New York, shall
    38  remain  subject  to  the  rent  stabilization law in accordance with the
    39  provisions of this chapter[, section four hundred  twenty-one-a  of  the
    40  real  property  tax  law] and/or section four hundred eighty-nine of the
    41  real property tax law as the case may be. Except to the extent to  which
    42  dwelling  units,  which  are  controlled  under other provisions of law,
    43  become subject to the rent stabilization law of nineteen hundred  sixty-
    44  nine  pursuant  to the preceding sentence, no dwelling unit shall become
    45  subject to the rent stabilization law solely by reason of insurance of a
    46  mortgage loan by the subsidiary corporation.
    47    § 10. Subdivision 6 of section 421-m of the real property tax law,  as
    48  added  by  section  43  of  part B of chapter 97 of the laws of 2011, is
    49  amended to read as follows:
    50    6. The exemption authorized by this section shall not be available  in
    51  a  jurisdiction to which the provisions of section [four hundred twenty-
    52  one-a or] four hundred twenty-one-c of this article are applicable.
    53    § 11. Subdivision 1 of section 467-e of the real property tax law,  as
    54  amended  by  chapter  483  of  the  laws  of 2007, is amended to read as
    55  follows:

        A. 1931--A                          4
 
     1    1. Generally. Notwithstanding any provision of any general, special or
     2  local law to the contrary, any city having a population of  one  million
     3  or more is hereby authorized and empowered to adopt and amend local laws
     4  in accordance with this section to grant a rebate of real property taxes
     5  for  fiscal years beginning on the first of July, two thousand three and
     6  ending on the thirtieth of June, two thousand nine in the amount of  the
     7  lesser  of  four  hundred dollars or the annual tax liability imposed on
     8  the property. No such local law may be  adopted  unless,  as  originally
     9  adopted, it authorizes such rebate to be granted in accordance with this
    10  section  for  three  consecutive  fiscal years beginning with the fiscal
    11  year beginning on the first of July, two thousand three. No such  rebate
    12  shall  be granted by local law for any fiscal year beginning on or after
    13  the first of July, two thousand nine, unless the council of  such  city,
    14  in  fixing  the  annual  tax  rates for any such fiscal year, shall have
    15  uniformly reduced such rates for all classes of  property  in  order  to
    16  produce  real  property  tax relief among such classes of property in an
    17  amount not less than, in the aggregate, the aggregate amount  of  rebate
    18  paid  in such fiscal year. No such local law implementing the provisions
    19  of this section, as amended by [the] chapter four  hundred  eighty-three
    20  of  the  laws  of two thousand seven [which added this sentence], may be
    21  adopted unless, as originally adopted, such local  law  authorizes  such
    22  rebate  to  be granted in accordance with this section for three consec-
    23  utive fiscal years beginning with the fiscal year beginning on the first
    24  of July, two thousand six. Any rebate authorized by local law in accord-
    25  ance with this section shall be paid in the fiscal  year  following  the
    26  fiscal  year  for  which  the rebate is granted. If, with respect to the
    27  fiscal year of such city beginning on the first of  July,  two  thousand
    28  eight  and  ending  on  the  thirtieth  of  June,  two thousand nine, an
    29  increase in average real property tax rates would otherwise be necessary
    30  in the resolution of such city council fixing real  property  tax  rates
    31  for  such  fiscal  year  pursuant  to the charter of such city, then the
    32  rebate to be paid for such fiscal year shall be reduced or eliminated as
    33  follows: where the sum to be raised by such increase is less than  seven
    34  hundred  fifty  million  dollars,  then  such rebate shall be reduced by
    35  fifty cents for each dollar of increase, and where the sum to be  raised
    36  by  such  increase  is seven hundred fifty million dollars or more, then
    37  such rebate shall be eliminated. The determination of the  reduction  or
    38  elimination  of  such rebate shall be set forth in such resolution after
    39  consultation with the department of finance of such city and shall  take
    40  effect  upon the final adoption of such resolution. Such rebate shall be
    41  paid to an owner or tenant-stockholder who, as of the date the  applica-
    42  tion  provided  for  in  subdivision four of this section is due, owns a
    43  one, two or three family residence or a  dwelling  unit  in  residential
    44  property  held  in the condominium or cooperative form of ownership that
    45  is the owner or tenant-stockholder's primary  residence  and  meets  all
    46  other   eligibility  requirements  of  this  section.    Notwithstanding
    47  anything to the contrary in sections [four hundred  twenty-one-a,]  four
    48  hundred  twenty-one-b  or  four  hundred  twenty-one-g of this title, an
    49  owner or tenant-stockholder whose property is receiving benefits  pursu-
    50  ant  to  such  sections  shall not be prohibited from receiving a rebate
    51  pursuant to this section if such owner or tenant-stockholder  is  other-
    52  wise  eligible  to receive such rebate.  Tenant-stockholders of dwelling
    53  units in a cooperative apartment corporation incorporated  as  a  mutual
    54  company  pursuant  to  article  two, four, five or eleven of the private
    55  housing finance law shall not be entitled to the  rebate  authorized  by
    56  this  section.  Such rebate shall be paid by the commissioner of finance

        A. 1931--A                          5
 
     1  to eligible owners  or  tenant-stockholders  in  accordance  with  rules
     2  promulgated by the commissioner of finance.
     3    §  12.  Paragraph  (b)  of  subdivision 1-a of section 489 of the real
     4  property tax law, as added by chapter  450  of  the  laws  of  2003,  is
     5  amended to read as follows:
     6    (b)  for  tax  lots  in the city of New York now existing or hereafter
     7  created within the following area in  the  borough  of  Manhattan,  such
     8  conversions,  alterations  or improvements are aided by a grant, loan or
     9  subsidy from any federal, state  or  local  agency  or  instrumentality:
    10  beginning  at the intersection of the United States pierhead line in the
    11  Hudson river and the center line of  Chambers  street  extended,  thence
    12  easterly  to the center line of Chambers street and continuing along the
    13  center line of Chambers street to the  center  line  of  Centre  street,
    14  thence  southerly  along  the center line of Centre street to the center
    15  line of the Brooklyn Bridge to the intersection of the  Brooklyn  Bridge
    16  and  the United States pierhead line in the East river, thence northerly
    17  along the United States pierhead line in the East river  to  the  inter-
    18  section  of  the  United  States pierhead line in the East river and the
    19  center line of One Hundred Tenth street extended, thence westerly to the
    20  center line of One Hundred Tenth street and continuing along the  center
    21  line  of  One  Hundred  Tenth  street  to  its westerly terminus, thence
    22  westerly to the intersection of the center line  of  One  Hundred  Tenth
    23  street extended and the United States pierhead line in the Hudson river,
    24  thence  southerly  along  the  United States pierhead line in the Hudson
    25  river to the point of  beginning.  For  purposes  of  this  subdivision,
    26  "floor  area" shall [have the same meaning as in paragraph b of subdivi-
    27  sion one of section four hundred twenty-one-a of this  title]  mean  the
    28  horizontal  areas  of  the  several  floors  or any portion thereof of a
    29  dwelling or dwellings and accessory structures on a  lot  measured  from
    30  the  exterior  faces  of exterior walls or from the center line of party
    31  walls. Nothing in this subdivision shall be construed to  provide  bene-
    32  fits pursuant to subdivision two of this section for the costs attribut-
    33  able to the increased cubic content in any such building or structure.
    34    § 13. This act shall take effect immediately.
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