senate Bill S3843

Amended

Makes a technical correction to the additional real property tax exemption for certain redevelopment company projects

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Bill Status


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

  • 22 / Feb / 2013
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 11 / Mar / 2013
    • 1ST REPORT CAL.176
  • 12 / Mar / 2013
    • 2ND REPORT CAL.
  • 13 / Mar / 2013
    • ADVANCED TO THIRD READING
  • 18 / Mar / 2013
    • PASSED SENATE
  • 18 / Mar / 2013
    • DELIVERED TO ASSEMBLY
  • 18 / Mar / 2013
    • REFERRED TO HOUSING
  • 11 / Jun / 2013
    • RECALLED FROM ASSEMBLY
  • 11 / Jun / 2013
    • RETURNED TO SENATE
  • 11 / Jun / 2013
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 11 / Jun / 2013
    • AMENDED ON THIRD READING 3843A
  • 18 / Jun / 2013
    • SUBSTITUTED BY A5900A

Summary

Makes a technical correction to the additional real property tax exemption for certain redevelopment company projects.

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Bill Details

Versions:
S3843
S3843A
Legislative Cycle:
2013-2014
Law Section:
Private Housing Finance Law
Laws Affected:
Amd ยง125, Priv Hous Fin L

Sponsor Memo

BILL NUMBER:S3843

TITLE OF BILL: An act to amend the private housing finance law, in
relation to making technical corrections to the additional real
property tax exemption for certain redevelopment company projects

PURPOSE: This bill would correct a technical error in Chapter 415 of
the laws of 2012 to insure that the original intent of the legislation
is upheld.

SUMMARY OF PROVISIONS:

Section 125 1 (a-3) is amended to limit the amount of taxes which must
be paid by a local redevelopment company during an extension of the
tax exemption benefit which has been granted by a municipality under
Article 9 to the lesser of 1)10t of the annual rent or carrying
charges on the project, minus utilities for the residential portion of
the project, or 2)the taxes which were payable by the redevelopment
company immediately prior to the expiration of the initial tax
exemption period.

JUSTIFICATION:

Chapter 415 of the laws of 2012 allows local governments the option to
extend existing property tax abatements to existing affordable housing
projects under the private housing finance law Article 5. These
projects are primarily Section 8 housing developments built in the
70's and 80's, plus several USDA Section 515 developments. Last
year's chapter contained a technical error which provided that a
continuing tax assessment be limited to the "greater of" ,rather than
the "lesser of" either 1) 10% of the annual rent or carrying charges
on the project, minus utilities or 2) the taxes which were payable by
the redevelopment company immediately prior to the expiration of the
tax benefit to limit the renewed tax exemption. This law as written
would have the unintended consequence of actually raising taxes upon
these projects. In order to remedy this error, accomplish the original
intent of last year's bill, and meet the expectations of affordable
housing providers this change must be enacted.

LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  3843

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 22, 2013
                               ___________

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 making
  technical corrections to the 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. Paragraph (a-3) of subdivision 1  of  section  125  of  the
private  housing  finance  law,  as  added by chapter 415 of the laws of
2012, is amended 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]  LESSER  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 residen-
tial 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.
                                                           LBD07329-01-3

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