senate Bill S6480

Signed by Governor

Authorizes local legislative bodies to grant additional real property tax exemptions to certain redevelopment company projects

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 15 / Feb / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 05 / Mar / 2012
    • 1ST REPORT CAL.272
  • 06 / Mar / 2012
    • 2ND REPORT CAL.
  • 07 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 18 / Apr / 2012
    • PASSED SENATE
  • 18 / Apr / 2012
    • DELIVERED TO ASSEMBLY
  • 18 / Apr / 2012
    • REFERRED TO HOUSING
  • 19 / Jun / 2012
    • SUBSTITUTED FOR A9498
  • 19 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.352
  • 19 / Jun / 2012
    • PASSED ASSEMBLY
  • 19 / Jun / 2012
    • RETURNED TO SENATE
  • 06 / Aug / 2012
    • DELIVERED TO GOVERNOR
  • 17 / Aug / 2012
    • SIGNED CHAP.415

Summary

Authorizes local legislative bodies to grant additional real property tax exemptions to redevelopment company projects, which are not operated by mutual redevelopment companies.

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Bill Details

See Assembly Version of this Bill:
A9498
Versions:
S6480
Legislative Cycle:
2011-2012
Law Section:
Private Housing Finance Law
Laws Affected:
Amd ยง125, Priv Hous Fin L

Sponsor Memo

BILL NUMBER:S6480

TITLE OF BILL:
An act
to amend the private housing finance law, in relation to authorizing
the granting of an additional real property tax exemption for certain
redevelopment company projects

PURPOSE:
This bill authorizes local legislative bodies to extend real
property tax abatements in order to encourage the retention of
federally subsidized affordable housing within the municipality.

SUMMARY OF PROVISIONS:
This bill amends subdivision 1 of section 125 of the private
housing finance law to add a new paragraph a(3) which provides
that a local legislative body may extend an Article 5 real property
tax abatement for projects which are nearing the end of their
abatement period. The abatement may be granted for up to a 50
year period or until such time as the property ceases to provide
affordable housing under Article 5.

JUSTIFICATION:

New York State Housing Finance Law Article 5 establishes a process
whereby a municipal legislative body may authorize real property
tax abatements in order to meet the municipality's need
for affordable housing. Most of the projects receiving these tax
abatements are Section 8 projects which were built during the 70s and
80s, have a maximum tax abatement term of 40 years, and are nearing
the end of their abatement period. State law does not currently
provide the option for a municipality to extend an existing tax
abatement period.

An owner exiting the program is subject to unpredictable real property
tax assessments. The tax assessment process is not equipped to take
into account the factors associated with maintaining affordable
housing. Many assessors do not refer to HUD's federal Real Estate
Assessment Center in formulating their assessments. Additionally one
of HUD's requirements in establishing the feasibility of Section 8
housing is that a project has an abatement that is an objective
predictable shelter rent percentage into the future, not a subjective
unpredictable annual assessment.

Many Section 8 owners will be unable to afford taxes based upon a
traditional valuation process and will likely choose to opt out of
the program when the tax abatement ceases. This bill will allow a
municipality the option to extend the abatement program to provide an
inducement for maintaining building to meet local affordable housing
needs.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.


EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6480

                            I N  S E N A T E

                            February 15, 2012
                               ___________

Introduced  by  Sen.  YOUNG  -- 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 private housing finance law, in relation to author-
  izing the granting of an additional real property  tax  exemption  for
  certain redevelopment company projects

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 125 of the private housing finance
law is amended by adding a new paragraph (a-3) to read as follows:
  (A-3) ANY INCONSISTENT PROVISION OF  LAW  NOTWITHSTANDING,  THE  LOCAL
LEGISLATIVE  BODY  OF  ANY  MUNICIPALITY  MAY  GRANT  AN  ADDITIONAL TAX
EXEMPTION PERIOD FOR ANY PROJECT, OTHER THAN A PROJECT BY A MUTUAL REDE-
VELOPMENT COMPANY, THAT RECEIVED A TAX EXEMPTION UNDER PARAGRAPH (A)  OF
THIS  SUBDIVISION,  UPON THE EXPIRATION OF THE TAX EXEMPTION PERIOD. THE
ADDITIONAL TAX EXEMPTION PERIOD MAY BE FOR A TERM  OF  FIFTY  YEARS,  OR
UNTIL  SUCH  TIME  AS  THE  PROJECT  IS  NO  LONGER  OPERATED  UNDER THE
RESTRICTIONS AND FOR THE PURPOSES SET FORTH IN THIS  ARTICLE,  WHICHEVER
IS  SOONER. UNLESS OTHERWISE APPROVED BY THE LOCAL LEGISLATIVE BODY, THE
AMOUNT OF TAXES PAID BY THE REDEVELOPMENT COMPANY DURING SUCH ADDITIONAL
TAX EXEMPTION PERIOD SHALL NOT BE LESS  THAN  AN  AMOUNT  EQUAL  TO  THE
GREATER  OF  (I) TEN PERCENT   OF THE ANNUAL RENT OR CARRYING CHARGES OF
THE PROJECT, MINUS UTILITIES FOR THE RESIDENTIAL PORTION OF THE PROJECT,
OR (II) THE TAXES PAYABLE BY SUCH COMPANY FOR THE RESIDENTIAL PORTION OF
THE PROJECT IMMEDIATELY PRIOR TO  THE  EXPIRATION  OF  THE  INITIAL  TAX
EXEMPTION PERIOD.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14426-02-2

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