Bill Text: NY S07865 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Establishes an optional local tax exemption for affordable multi-family housing, to be implemented by cities, towns and villages based on recommendations developed by the division of housing and community renewal for each economic development region.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-03-26 - PRINT NUMBER 7865A [S07865 Detail]

Download: New_York-2023-S07865-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7865

                    IN SENATE

                                     January 3, 2024
                                       ___________

        Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development

        AN  ACT  to amend the real property tax law, in relation to establishing
          an optional local tax exemption for affordable multi-family housing

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  real  property  tax  law  is amended by adding a new
     2  section 421-p to read as follows:
     3    § 421-p. Exemption of newly-constructed rental multiple dwellings.  1.
     4  (a) A city, town or village may, by local law, provide for the exemption
     5  of rental multiple dwellings constructed in a benefit area designated in
     6  such  local law from taxation and special ad valorem levies, as provided
     7  in this section. Subsequent to the adoption of such  a  local  law,  any
     8  other  municipal  corporation  in  which  the designated benefit area is
     9  located may likewise exempt such property from its taxation and  special
    10  ad  valorem levies by local law, or in the case of a school district, by
    11  resolution.
    12    (b) As used in this section, the term "benefit area"  means  the  area
    13  within  a  city,  town  or village, designated by local law, to which an
    14  exemption, established pursuant to this section, applies.
    15    (c) The term "rental multiple dwelling" means a structure, other  than
    16  a  hotel,  consisting of twenty or more dwelling units, where all of the
    17  units are rented for residential purposes, and such units, upon  initial
    18  rental  and  upon  each subsequent rental following a vacancy during the
    19  benefit period, are affordable to and restricted to occupancy  by  indi-
    20  viduals  or  families  whose  household income does not exceed a certain
    21  percentage, as determined based  on  recommendations  developed  by  the
    22  division  of housing and community renewal for each economic development
    23  region, of the area median income, adjusted for family size, on average,
    24  at the time that such households initially occupy such  dwelling  units.
    25  Such  restriction period shall be in effect coterminous with the benefit
    26  period, provided, however, that the  tenant  or  tenants  in  an  income
    27  restricted  dwelling unit at the time such restriction period ends shall

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11990-02-3
        S. 7865                             2

     1  have the right to lease renewals at the income  restricted  level  until
     2  such  time  as  such  tenant  or tenants permanently vacate the dwelling
     3  unit.
     4    2.  (a)  The  division  of housing and community renewal shall develop
     5  recommendations for each economic development region, as established  by
     6  section  two  hundred  thirty of the economic development law, regarding
     7  the implementation of the exemption created under this section.  Cities,
     8  towns,  and  villages  providing such exemption shall have the option to
     9  opt into such recommendations.
    10    (b) Such recommendations shall:
    11    (i) consider the financial feasibility of constructing  and  operating
    12  new housing in each economic development region, including any variation
    13  in construction costs and operating incomes for rental multiple dwelling
    14  projects  in  different  parts of each such region, and among subsidized
    15  and unregulated rental multiple dwelling projects;
    16    (ii)  include  recommendations  for  both  rental  multiple   dwelling
    17  projects  receiving additional subsidies or exemptions and rental multi-
    18  ple dwelling projects receiving no additional subsidies  or  exemptions;
    19  and
    20    (iii)  include  recommendations  for affordable homeownership projects
    21  receiving additional subsidies or exemptions and  affordable  homeowner-
    22  ship projects receiving no additional subsides or exemptions.
    23    (c)  Such  recommendations shall be updated by the division of housing
    24  and community renewal no less than once every two years.
    25    3. Application for exemption under this section shall  be  made  on  a
    26  form  prescribed  by  the commissioner and filed with the assessor on or
    27  before the applicable taxable status date.
    28    4. In the case of newly constructed property which is  used  partially
    29  as  a  rental  multiple  dwelling  and partially for commercial or other
    30  purposes, the portion of the newly constructed property that is used  as
    31  a  rental  multiple dwelling shall be eligible for the exemption author-
    32  ized by this section if:
    33    (a) The square footage of the portion used as a rental multiple dwell-
    34  ing represents at least fifty percent  of  the  square  footage  of  the
    35  entire property;
    36    (b)  The  rental  units  are  affordable to individuals or families as
    37  determined according to the criteria  set  forth  in  paragraph  (c)  of
    38  subdivision one of this section; and
    39    (c)  The  requirements  of  this  section are otherwise satisfied with
    40  respect to the portion of the property used as a rental multiple  dwell-
    41  ing.
    42    5.  The exemption authorized by this section shall not be available in
    43  a city with a population of one million or more.
    44    6. Any recipient of the exemption authorized by this section or  their
    45  designee  shall  certify  compliance with the provisions of this section
    46  under penalty of perjury, at such time or times and in  such  manner  as
    47  may  be prescribed in the local law adopted by the city, town or village
    48  pursuant to paragraph (a) of subdivision one of this section,  or  by  a
    49  subsequent  local  law.  Such  city,  town or village may establish such
    50  procedures as it deems necessary for monitoring and enforcing compliance
    51  of an eligible building with the provisions of this section.
    52    § 2. This act shall take effect immediately.