senate Bill S7709

Signed by Governor

Relates to authorizing the granting of an additional real property tax exemption for certain redevelopment company projects

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Sponsor

Bill Status


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

  • 02 / Jun / 2014
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 18 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 18 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1519
  • 18 / Jun / 2014
    • PASSED SENATE
  • 18 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 18 / Jun / 2014
    • REFERRED TO WAYS AND MEANS
  • 19 / Jun / 2014
    • SUBSTITUTED FOR A9937
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.501
  • 19 / Jun / 2014
    • PASSED ASSEMBLY
  • 19 / Jun / 2014
    • RETURNED TO SENATE
  • 05 / Dec / 2014
    • DELIVERED TO GOVERNOR
  • 17 / Dec / 2014
    • SIGNED CHAP.531

Summary

Relates to authorizing the granting of an additional real property tax exemption for certain redevelopment company projects.

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Bill Details

See Assembly Version of this Bill:
A9937
Versions:
S7709
Legislative Cycle:
2013-2014
Law Section:
Private Housing Finance Law
Laws Affected:
Amd ยง125, Priv Hous Fin L

Sponsor Memo

BILL NUMBER:S7709

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 OR GENERAL IDEA OF BILL:

Allows the New York City Council to grant Penn South up to fifty years
of additional tax exempt status from certain local and municipal
taxes, provided that it continues to maintain its status as affordable
housing.

SUMMARY OF SPECIFIC PROVISIONS:

This bill would authorize a local legislative body in a city with a
population of one million or more to grant an additional tax exemption
from certain local and municipal taxes for a period of up to fifty
years wherever it has acted to extend a tax exemption of a mutual
redevelopment company for the maximum period provided in paragraph
(a-2) of subdivision 1 of Section 125 of the Private Housing Finance
Law, provided that the amount of taxes to be paid during such
additional period of tax exemption shall be not less than an amount
equal to the greater of ten percent of the annual rent or carrying
charges of the project minus utilities for the residential portion of
the project or the taxes payable by such mutual redevelopment company
for the residential portion of the project during the tax year
commencing July 1, 2000 and ending on June 30, 2001.

JUSTIFICATION:

Mutual Redevelopment Houses, Inc. (more commonly known as "Penn
South") is a redevelopment company organized pursuant to Article V of
the Private Housing Finance Law that is located in the Chelsea area of
Manhattan, an area that has experienced tremendous growth in real
property values in recent years. Penn South still has managed to
maintain its affordability in the face of the City's growing shortage
of affordable housing. Penn South is undertaking a critically
essential and very costly HVAC replacement project which has required
a private loan and the aid of mortgage loan financing from the New
York City Housing Development Corporation. In order to pay for the
necessary work, Penn South has imposed a ten-year annual capital
assessment, which began on June 1, 2011, on its resident cooperators
and a special assessment on the sale of apartments. In addition, Penn
South's surcharge revenue has been increased.

This bill would allow the local legislative body, in support of Penn
South's remaining affordable, to provide up to fifty years of
additional tax exemption to Penn South provided that it continues to
maintain its status as affordable housing.

PRIOR LEGISLATIVE HISTORY:

New Legislation

FISCAL IMPLICATIONS:


None to the state

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
________________________________________________________________________

    S. 7709                                                  A. 9937

                      S E N A T E - A S S E M B L Y

                              June 2, 2014
                               ___________

IN SENATE -- Introduced by Sen. HOYLMAN -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Housing,
  Construction and Community Development

IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M.  of
  A. Gottfried) -- read once and referred to the Committee on Housing

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-4) to read as follows:
  (A-4) ANY INCONSISTENT PROVISION OF LAW  NOTWITHSTANDING,  IN  A  CITY
HAVING  A  POPULATION  OF ONE MILLION OR MORE, WHERE A LOCAL LEGISLATIVE
BODY HAS ACTED TO EXTEND THE TAX EXEMPTION  OF  A  MUTUAL  REDEVELOPMENT
COMPANY  FOR  THE MAXIMUM PERIOD PROVIDED FOR IN PARAGRAPH (A-2) OF THIS
SUBDIVISION, THE LOCAL LEGISLATIVE BODY  MAY  GRANT  AN  ADDITIONAL  TAX
EXEMPTION FOR A PERIOD OF UP TO FIFTY YEARS, PROVIDED THAT THE AMOUNT OF
TAXES  TO  BE  PAID DURING ANY SUCH PERIOD OF TAX EXEMPTION SHALL BE NOT
LESS THAN AN AMOUNT EQUAL TO THE GREATER OF (I) TEN PER  CENTUM  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 DURING THE TAX YEAR
COMMENCING JULY FIRST, TWO THOUSAND AND ENDING ON  JUNE  THIRTIETH,  TWO
THOUSAND  ONE.  SUCH  GRANT  OF AN ADDITIONAL TAX EXEMPTION PERIOD SHALL
TAKE EFFECT UPON THE EXPIRATION OF THE MAXIMUM PERIOD  PROVIDED  FOR  IN
PARAGRAPH (A-2) OF THIS SUBDIVISION.
  S 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15433-01-4

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