Bill Text: NY A02353 | 2023-2024 | General Assembly | Introduced
Bill Title: Makes clarifying changes to the exemption of real property of an applicable battery park city property from payments in lieu of taxes (PILOT).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-02-01 - substituted by s842 [A02353 Detail]
Download: New_York-2023-A02353-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2353 2023-2024 Regular Sessions IN ASSEMBLY January 25, 2023 ___________ Introduced by M. of A. FALL -- read once and referred to the Committee on Aging AN ACT to amend the real property tax law, in relation to exempting real property of an applicable battery park city property from payments in lieu of taxes; to amend a chapter of the laws of 2022 relating to directing the battery park city authority to extend its lease with the city of New York, as proposed in legislative bills numbers S. 9032-B and A. 10414-A, in relation to directing the battery park city author- ity to extend its restated and amended master lease by at least fifty years; and to repeal certain provisions of the real property tax law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The section heading, paragraphs b and i of subdivision 1, 2 subdivision 2, the opening paragraph of paragraph b of subdivision 3 and 3 subdivisions 6, 7 and 8 of section 467-c of the real property tax law, 4 as amended by part A of a chapter of the laws of 2022 amending the real 5 property tax law relating to authorizing eligibility for SCRIE and DRIE 6 for tenants of properties located in battery park city, as proposed in 7 legislative bills numbers S. 9032-B and A. 10414-A, are amended and a 8 new paragraph n of subdivision 1 is added to read as follows: 9 Exemption for property owned by certain housing companies or [leased10by] sublessees of the battery park city authority and occupied by senior 11 citizens or persons with disabilities. 12 b. "Dwelling unit" means that part of a dwelling in which an eligible 13 head of the household resides and (1) which is subject to the provisions 14 of[: (1)] Article II, IV, V, or XI of the private housing finance law; 15 or (2) [that part of a dwelling] which was or continues to be subject to 16 a mortgage insured or initially insured by the federal government pursu- 17 ant to section two hundred thirteen of the National Housing Act, as 18 amended, in which an eligible head of the household resides; or (3) [aEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04140-01-3A. 2353 2 1sublease with the] which is within an applicable battery park city 2 [authority] property. 3 i. "Maximum rent" means the maximum rent, excluding gas and electric 4 utility charges, which has been authorized or approved by the commis- 5 sioner or the supervising agency or the legal regulated rent established 6 for the dwelling unit pursuant to the provisions of either Article II, 7 IV, V or XI of the private housing finance law, or the rental estab- 8 lished for a cooperatively owned dwelling unit previously regulated 9 pursuant to the provisions of Article II, IV, V or XI of the private 10 housing finance law; or such approved rent for a dwelling unit in a 11 dwelling subject to a mortgage insured or initially insured by the 12 federal government pursuant to section two hundred thirteen of the 13 National Housing Act, as amended; or such rent established for a dwell- 14 ing unit which was subject to a mortgage insured or initially insured by 15 the federal government pursuant to section two hundred thirteen of the 16 National Housing Act, as amended; or the rent established for an appli- 17 cable battery park city property [pursuant to a regulatory agreement18between the battery park city authority and the landlord]. 19 n. "Applicable battery park city property" means a property that is 20 (1) subject to a lease or sublease with the battery park city authority; 21 and (2) has one or more residential units which are subject to limita- 22 tions on rent increases pursuant to: 23 (i) a contractual agreement with the battery park city authority, 24 which may be within the lease or sublease between the battery park city 25 authority and the lessee or sublessee; or 26 (ii) a regulatory agreement with the commissioner or supervising agen- 27 cy. 28 2. The governing body of any city having a population of one million 29 or more, acting through its local legislative body or other governing 30 agency is hereby authorized and empowered to adopt and amend local laws 31 or ordinances providing that real property of a housing company [or32landlord who is subject to a sublease with the battery park city author-33ity] shall be exempt from real property taxes [or] and that real proper- 34 ty of an applicable battery park city property shall be exempt from 35 payments in lieu of taxes (PILOT), in an amount equal to the rent 36 increase exemptions actually credited to eligible heads of households 37 pursuant to this section. Any such exemption shall be in addition to any 38 other exemption or abatement of taxes authorized by law. 39 notwithstanding any other provision of law, when a head of the house- 40 hold to whom a then current, valid tax abatement certificate has been 41 issued moves his principal residence from one dwelling unit subject to 42 this section, to the local emergency housing rent control law or to the 43 emergency tenant protection act of nineteen seventy-four to a subsequent 44 dwelling unit which is subject to the provisions of articles II, IV, V 45 or XI of the private housing finance law and which is located within the 46 same municipal corporation, or which is or was subject to a mortgage 47 insured or initially insured by the federal government pursuant to 48 section two hundred thirteen of the National Housing Act, as amended, 49 [or which is subject to the provisions of a sublease between the land-50lord and the battery park city authority] and which is located within 51 the same municipal corporation, or which is an applicable battery park 52 city property, the head of the household may apply for a tax abatement 53 certificate relating to the subsequent dwelling unit, subject to any 54 terms and conditions imposed by reason of any fund created under subdi- 55 vision eight of this section, and such certificate may provide that the 56 head of the household shall be exempt from paying that portion of theA. 2353 3 1 maximum rent or legal regulated rent for the subsequent dwelling unit 2 which is the least of the following: 3 6. Any such local law or ordinance may provide that upon receipt of a 4 copy of the rent increase exemption order/tax abatement certificate, the 5 housing company managing the dwelling unit or the landlord of the dwell- 6 ing unit[, subject to a sublease with the] within an applicable battery 7 park city [authority] property, of the eligible head of the household 8 shall promptly accord to the eligible head of the household covered by 9 such order/certificate the appropriate credit against the monthly maxi- 10 mum rent then or thereafter payable. To the extent the full amount of 11 such credit has not been accorded for any past period since the effec- 12 tive date specified in the order/certificate, the housing company or 13 landlord shall credit the total aggregate amount not so credited to the 14 monthly maximum rent next payable or to such subsequent monthly maximum 15 rents as the supervising agency may authorize. It shall be illegal to 16 collect any amount for which a rent increase exemption order/tax abate- 17 ment certificate provides credit or to withhold credit for any such 18 amounts already collected, and collection or retention of any such 19 amount for a dwelling unit occupied by such eligible head of the house- 20 hold shall be deemed a rent overcharge, and upon conviction therefor the 21 housing company and its directors and any employee and any agent respon- 22 sible therefor or the landlord and any employee and any agent responsi- 23 ble therefor shall be guilty of a misdemeanor, punishable by a fine not 24 to exceed one thousand dollars or imprisonment not to exceed six months, 25 or both. 26 7. Any such local law or ordinance may provide that in order to obtain 27 the benefits to which it is entitled under this section, a housing 28 company or landlord [who is subject to a sublease with the] of an appli- 29 cable battery park city [authority] property must file with the collect- 30 ing officer charged with the duty of collecting taxes [or PILOT] of the 31 municipality or PILOT a sworn application, in such form as such officer 32 may prescribe, for any quarterly period in which the housing company or 33 landlord has accorded an eligible head of the household an exemption 34 hereunder from the payment of the maximum rent. Subject to prior or 35 subsequent verification thereof, the collecting officer shall credit the 36 total amount of such exemptions actually accorded to occupants of dwell- 37 ing units contained in the property against the real property taxes or 38 PILOT otherwise payable with respect to the property. The housing compa- 39 ny or landlord shall attach to such application copies of all rent 40 increase exemption orders/tax abatement certificates issued to eligible 41 heads of the household residing in dwelling units in such real property. 42 8. Any such local law or ordinance may provide that in the event that 43 the real property of a housing company or [landlord who is subject to a44sublease with the] applicable battery park city [authority] property 45 containing one or more dwelling units shall be totally exempt from local 46 and municipal real property taxes or PILOT for any fiscal year as a 47 result of the exemptions from maximum rent credited pursuant to this 48 section, or otherwise, such municipality may make or contract to make 49 payments to a housing company or landlord in an amount not exceeding the 50 amount necessary to reimburse the housing company or landlord for the 51 total dollar amount of all exemptions from the payment of the maximum 52 rent accorded pursuant to this section to eligible heads of the house- 53 hold residing in dwelling units in such real property. Notwithstanding 54 the foregoing, the battery park city authority shall have no obligation 55 whatsoever to reimburse a landlord.A. 2353 4 1 A municipality may create and establish a fund in order to provide for 2 the payments made in accordance with contracts entered into pursuant to 3 this subdivision. There may be paid into such fund (1) all of the rental 4 surcharges collected by the municipality from housing companies organ- 5 ized and existing pursuant to Articles II, IV, V and XI of the private 6 housing finance law and (2) any moneys appropriated or otherwise made 7 available by the municipality for the purpose of such fund. 8 § 2. Subdivision 13 of section 467-c of the real property tax law, as 9 added by part A of a chapter of the laws of 2022 amending the real prop- 10 erty tax law relating to authorizing eligibility for SCRIE and DRIE for 11 tenants of properties located in battery park city, as proposed in 12 legislative bills numbers S. 9032-B and A. 10414-A, is REPEALED. 13 § 3. Section 1 of part C of a chapter of the laws of 2022 relating to 14 directing the battery park city authority to extend its lease with the 15 city of New York, as proposed in legislative bills numbers S. 9032-B and 16 A. 10414-A, is amended to read as follows: 17 Section 1. Notwithstanding any provision of law to the contrary, with- 18 in six months of the effective date of this act, the battery park city 19 authority shall extend the expiration date of the restated and amended 20 master lease [between the authority and the city of New York, dated21November 24, 1969 and] captioned "Restated Amended Agreement of Lease" 22 dated June 10, 1980, a memorandum of which was recorded [December 26,231969] in the Office of the City Register on page [1] 163 of reel [161] 24 527, as supplemented, restated and amended, until June 18, 2119 or 25 later. 26 § 4. This act shall take effect on the same date and in the same 27 manner as part A of a chapter of the laws of 2022 amending the real 28 property tax law relating to authorizing eligibility for SCRIE and DRIE 29 for tenants of properties located in battery park city, as proposed in 30 legislative bills numbers S. 9032-B and A. 10414-A, takes effect; 31 provided, however, that section three of this act shall take effect on 32 the same date and in the same manner as part C of a chapter of the laws 33 of 2022 relating to directing the battery park city authority to extend 34 its lease with the city of New York, as proposed in legislative bills 35 numbers S. 9032-B and A. 10414-A, takes effect.