Senate Bill S5956

2009-2010 Legislative Session

Relates to exemption from taxation of alterations and improvements to certain multiple dwellings to eliminate fire and health hazards

download bill text pdf

Archive: Last Bill Status - On Floor Calendar

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 08, 2010	amended on third reading 5956b
Mar 22, 2010	advanced to third reading
Mar 18, 2010	2nd report cal.
Mar 17, 2010	1st report cal.284
Feb 25, 2010	print number 5956a
Feb 25, 2010	amend and recommit to local government
Jan 06, 2010	referred to local government
Jul 16, 2009	recommitted to rules ordered to third reading cal.930
Jun 19, 2009	referred to rules

Votes

- Jul 16, 2009 - Rules Committee Vote
  S5956
  
  Aye
  
  21
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  1
  - - Rules Committee Vote: Jul 16, 2009
      
      aye (21)
      
      Dilan
      
      Espada
      
      Farley
      
      Hannon
      
      Hassell-Thompson
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Monserrate
      
      Montgomery
      
      Padavan
      
      Parker
      
      Saland
      
      Serrano
      
      Seward
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      Volker
      
      aye wr (1)
      
      Skelos
      
      excused (1)
      
      Johnson
      
      abstained (1)
      
      Duane
  Mar 17, 2010 - Local Government Committee Vote
  S5956
  
  Aye
  
  6
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Local Government Committee Vote: Mar 17, 2010
      
      aye (6)
      
      Bonacic
      
      Little
      
      Oppenheimer
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      aye wr (1)
      
      Johnson
      
      excused (1)
      
      Morahan

Bill Amendments

Original

B (Active)

2009-S5956 - Details

Law Section:: Real Property Tax Law
Laws Affected:: Amd §489, RPT L

2009-S5956 - Summary

Provides that multiple dwellings owned and operated by a mutual redevelopment company established pursuant to article five of the private housing finance law which contains a total of 2,800 or more dwelling units shall be eligible for tax exemption and abatement for improvements to eliminate fire and health hazards.

2009-S5956 - Sponsor Memo

                                 BILL NUMBER:  S5956

 TITLE OF BILL :
An act to amend the real property tax law, in relation to exemption
from taxation of alterations and improvements to certain multiple
dwellings to eliminate fire and health hazards


 PURPOSE OR GENERAL IDEA OF BILL :
To let New York City expand J-51 tax abatement for the Penn South
Houses mutual redevelopment company for replacing heating,
ventilation, and air-cooling systems.

 SUMMARY OF SPECIFIC PROVISIONS :
Add, a new subdivision 4-d to Real Property Tax Law § 489. Paragraph
(a) limits the provisions of this bill to multiple dwellings owned and
operated by a mutual redevelopment company established pursuant to
article five of the private finance housing law with at least 2,800
units.

Paragraph (b) provide, a J-51 tax exemption for any increase in
assessed value that results from the alterations and improvements.

Paragraph (c) provides for a tax abatement that shall not exceed the
greater of 150 percent of certified reasonable cost or 35 percent of
actual cost of alterations or improvements. The abatement is to be

applied as a credit against real estate taxes at a rate up to 8 1/3
percent a year. If the designated amount cannot be credited each year
for any reason, (e.g. it exceeds amount of tax payable) it can be used
in any of the following 8 years.

Paragraph (d) would exempt the work from current provision, making
J-51 benefit, available only if the property has no violation of local
codes concerning its physical condition. This provision would permit
benefits to start before violations are fully cleared.  Violations
must be cleared upon completion of alterations or improvements.

Paragraph (e) would waive limits on the amount of abatement or
exemption granted to any apartment unit pursuant to subdivision 11,
paragraphs (b) and (e) of this section, which restricts the amount of
abatement or exemption granted to any apartment unit, since the new
language in paragraph (d) imposes a limit on benefits.

Paragraph (f) limits benefits to work completed by 2015.

 JUSTIFICATION :
Penn South Houses is a non-profit cooperative development in
Manhattan. It is nearly 50 years old and requires extensive work on
its heating and ventilation systems.

Without this legislation, the necessary work would require substantial
rent increases. A large portion of Penn South's residents are limited
income seniors with Senior Citizen Rent Increase Exemption benefits,
so these rent increases would result in considerably increased SCRIE
tax abatements. Also, the amount of rent surcharge paid by
higher-income residents would be reduced, because more of their
monthly payment would be going to regular rent. Penn South pays a
portion of its rent surcharge income to the City. Thus, if this bill
is not enacted, that would cost the City an amount comparable to the
J-51 benefits contemplated by this bill. So while this legislation
provides substantial protection to the development's residents, it
would not significantly affect the City financially.

As the only remaining Article V limited equity coop, Penn South, a
2,802-unit development located in Manhattan, is the only development
subject to this legislation. Since its residents are concerned with
the continued maintenance and affordability of their buildings and not
the resale of their units (from which they are not permitted to
profit), this legislation will enable necessary repairs to be
undertaken with J-5I benefits thus preserving this unique and
affordable housing resource.

New York City's allowances for J-51 benefits would only cover a small
portion of Penn South's planned HVAC replacement. This legislation
would give the City authority to expand the J-51 abatement for this
project.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This bill shall take effect immediately.

2009-S5956 - Bill Text download pdf

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

                                  5956

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 19, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property tax law, in relation to exemption from
  taxation of alterations and improvements to certain multiple dwellings
  to eliminate fire and health hazards

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

  Section  1.  Section  489  of  the real property tax law is amended by
adding a new subdivision 4-d to read as follows:
  4-D. (A) ANY SUCH LOCAL LAW MAY ALSO PROVIDE THAT A GROUP OF  MULTIPLE
DWELLINGS  WHICH IS OWNED AND OPERATED BY A MUTUAL REDEVELOPMENT COMPANY
ESTABLISHED PURSUANT TO ARTICLE FIVE OF THE PRIVATE HOUSING FINANCE  LAW
WHICH  CONTAINS  A  TOTAL OF TWENTY-EIGHT HUNDRED OR MORE DWELLING UNITS
SHALL BE ELIGIBLE FOR TAX EXEMPTION AND ABATEMENT AS  PROVIDED  IN  THIS
SUBDIVISION.
  (B)  ANY  INCREASE IN ASSESSED VALUATION RESULTING FROM ALTERATIONS OR
IMPROVEMENTS TO ONE OR MORE MULTIPLE DWELLINGS WHICH ARE OWNED AND OPER-
ATED BY A MUTUAL REDEVELOPMENT COMPANY AS DESCRIBED IN PARAGRAPH (A)  OF
THIS SUBDIVISION SHALL BE EXEMPT FROM TAXATION FOR LOCAL PURPOSES.  SUCH
EXEMPTION  SHALL  BE  EQUAL  TO  THE  INCREASE IN THE VALUATION WHICH IS
SUBJECT TO EXEMPTION UNDER THIS PARAGRAPH FOR THIRTY YEARS.  AFTER  SUCH
PERIOD  OF  TIME,  THE  AMOUNT  OF SUCH EXEMPTED ASSESSED VALUE SHALL BE
REDUCED BY TWENTY PERCENT IN EACH SUCCEEDING  YEAR  UNTIL  THE  ASSESSED
VALUE  OF  THE  ALTERATIONS  OR  IMPROVEMENTS  IS  FULLY  TAXABLE.  SUCH
EXEMPTION MAY COMMENCE AT THE BEGINNING OF ANY TAX QUARTER SUBSEQUENT TO
THE START OF SUCH ALTERATIONS OR IMPROVEMENTS. IN NO  EVENT  SHALL  SUCH
ALTERATIONS  OR  IMPROVEMENTS DIRECTLY OR INDIRECTLY RESULT IN AN EQUAL-
IZATION INCREASE IN THE ASSESSED  VALUATION  OF  ANY  MULTIPLE  DWELLING
FORMING  PART OF THE MUTUAL REDEVELOPMENT COMPANY WHERE SUCH ALTERATIONS
OR IMPROVEMENTS ARE PERFORMED.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14258-01-9

S. 5956                             2

  (C) THE ABATEMENT OF TAXES IN A MUTUAL REDEVELOPMENT COMPANY DESCRIBED
IN PARAGRAPH (A) OF THIS SUBDIVISION,  INCLUDING  THE  LAND,  SHALL  NOT
EXCEED  THE GREATER OF (I) ONE HUNDRED FIFTY PER CENTUM OF THE CERTIFIED
REASONABLE COST OF THE ALTERATIONS OR IMPROVEMENTS, AS DETERMINED  UNDER
THE REGULATIONS OF THE LOCAL HOUSING AGENCY ADMINISTERING THE LOCAL LAW,
AND  (II)  THIRTY-FIVE  PER CENTUM OF THE ACTUAL CONTRACTED CONSTRUCTION
COST OF ALL ALTERATIONS OR IMPROVEMENTS MADE TO AND IN CONJUNCTION  WITH
THE  REPLACEMENT  OF  THE  EXISTING HEATING, VENTILATION AND AIR COOLING
SYSTEM, WHETHER OR NOT SUCH ITEMS ARE CURRENTLY IDENTIFIED IN THE  REGU-
LATIONS  OF THE LOCAL HOUSING AGENCY. SUCH ABATEMENT SHALL NOT BE EFFEC-
TIVE FOR MORE THAN TWENTY YEARS AND THE ANNUAL ABATEMENT OF TAXES IN ANY
CONSECUTIVE TWELVE-MONTH PERIOD SHALL NOT  BE  GREATER  THAN  EIGHT  AND
ONE-THIRD PER CENTUM OF THE TOTAL ABATEMENT GRANTED AND SHALL NOT EXCEED
THE  AMOUNT  OF  TAXES  PAYABLE IN SUCH CONSECUTIVE TWELVE-MONTH PERIOD.
SUCH ABATEMENT SHALL BEGIN NO SOONER THAN THE FIRST QUARTERLY  TAX  BILL
IMMEDIATELY  FOLLOWING  THE  COMPLETION  OF SUCH ALTERATIONS OR IMPROVE-
MENTS. THE LIMITATIONS SET FORTH IN SUBDIVISION FOUR OF THIS SECTION FOR
MULTIPLE DWELLINGS, BUILDINGS AND STRUCTURES OWNED AS COOPERATIVES SHALL
BE INAPPLICABLE TO BENEFITS GRANTED PURSUANT TO THIS SUBDIVISION.
  (D) IN THE EVENT THAT MULTIPLE ALTERATIONS OR IMPROVEMENTS ARE  UNDER-
TAKEN  IN  A  MUTUAL REDEVELOPMENT COMPANY DESCRIBED IN PARAGRAPH (A) OF
THIS SUBDIVISION, AND SEPARATE APPLICATIONS FOR  BENEFITS  THEREFOR  ARE
MADE,  ALL  REQUIREMENTS CONCERNING PHYSICAL CONDITION OF AND COMPLIANCE
WITH LAW BY THE MULTIPLE DWELLINGS IN SUCH REDEVELOPMENT  COMPANY  SHALL
APPLY  ONLY  UPON  COMPLETION  OF  ALL SUCH ALTERATIONS OR IMPROVEMENTS,
PROVIDED THAT ALL SUCH ALTERATIONS OR IMPROVEMENTS ARE COMPLETED  WITHIN
SIX YEARS.
  (E)  EXCEPT  AS  PROVIDED IN THIS SUBDIVISION, ALL OF THE REQUIREMENTS
IMPOSED BY THIS SECTION ON PROJECTS DESCRIBED IN PARAGRAPH (A) OF SUBDI-
VISION ONE OF  THIS  SECTION  SHALL  BE  APPLICABLE  TO  ALTERATIONS  OR
IMPROVEMENTS  GRANTED  BENEFITS PURSUANT TO THIS SUBDIVISION BUT NONE OF
THE LIMITATIONS OF PARAGRAPHS (B) AND (C) OF SUBDIVISION ELEVEN OF  THIS
SECTION SHALL BE APPLICABLE.
  (F)  THIS  SUBDIVISION  SHALL  BE  APPLICABLE  ONLY  TO ALTERATIONS OR
IMPROVEMENTS COMPLETED PRIOR  TO  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
FIFTEEN.
  S 2. This act shall take effect immediately.

2009-S5956A - Details

Law Section:: Real Property Tax Law
Laws Affected:: Amd §489, RPT L

2009-S5956A - Summary

2009-S5956A - Sponsor Memo

                                 BILL NUMBER:  S5956A

 TITLE OF BILL :
An act to amend the real property tax law, in relation to exemption
from taxation of alterations and improvements to certain multiple
dwellings to eliminate fire and health hazards


 PURPOSE OR GENERAL IDEA OF BILL :
To let New York City expand J-51 tax abatement for the Penn South
Houses mutual redevelopment company for replacing heating,
ventilation, and air-cooling systems.

 SUMMARY OF SPECIFIC PROVISIONS :
Add, a new subdivision 4-d to Real Property Tax Law § 489. Paragraph
(a) limits the provisions of this bill to multiple dwellings owned and
operated by a mutual redevelopment company established pursuant to
article five of the private finance housing law with at least 2,800
units.

Paragraph (b) provide, a J-51 tax exemption for any increase in
assessed value that results from the alterations and improvements.

Paragraph (c) provides for a tax abatement that shall not exceed the
greater of 150 percent of certified reasonable cost or 35 percent of
actual cost of alterations or improvements. The abatement is to be

applied as a credit against real estate taxes at a rate up to 8 1/3
percent a year. If the designated amount cannot be credited each year
for any reason, (e.g. it exceeds amount of tax payable) it can be used
in any of the following 8 years.

Paragraph (d) would exempt the work from current provision, making
J-51 benefit, available only if the property has no violation of local
codes concerning its physical condition. This provision would permit
benefits to start before violations are fully cleared.  Violations
must be cleared upon completion of alterations or improvements.

Paragraph (e) would waive limits on the amount of abatement or
exemption granted to any apartment unit pursuant to subdivision 11,
paragraphs (b) and (e) of this section, which restricts the amount of
abatement or exemption granted to any apartment unit, since the new
language in paragraph (d) imposes a limit on benefits.

Paragraph (f) limits benefits to work completed by 2015.

 JUSTIFICATION :
Penn South Houses is a non-profit cooperative development in
Manhattan. It is nearly 50 years old and requires extensive work on
its heating and ventilation systems.

Without this legislation, the necessary work would require substantial
rent increases. A large portion of Penn South's residents are limited
income seniors with Senior Citizen Rent Increase Exemption benefits,
so these rent increases would result in considerably increased SCRIE
tax abatements. Also, the amount of rent surcharge paid by
higher-income residents would be reduced, because more of their
monthly payment would be going to regular rent. Penn South pays a
portion of its rent surcharge income to the City. Thus, if this bill
is not enacted, that would cost the City an amount comparable to the
J-51 benefits contemplated by this bill. So while this legislation
provides substantial protection to the development's residents, it
would not significantly affect the City financially.

As the only remaining Article V limited equity coop, Penn South, a
2,802-unit development located in Manhattan, is the only development
subject to this legislation. Since its residents are concerned with
the continued maintenance and affordability of their buildings and not
the resale of their units (from which they are not permitted to
profit), this legislation will enable necessary repairs to be
undertaken with J-5I benefits thus preserving this unique and
affordable housing resource.

New York City's allowances for J-51 benefits would only cover a small
portion of Penn South's planned HVAC replacement. This legislation
would give the City authority to expand the J-51 abatement for this
project.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This bill shall take effect immediately.

2009-S5956A - Bill Text download pdf

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

                                 5956--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 19, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules  --  recommitted  to
  the  Committee  on  Local Government in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN ACT to amend the real property tax law, in relation to exemption from
  taxation of alterations and improvements to certain multiple dwellings
  to eliminate fire and health hazards

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

  Section 1. Section 489 of the real property  tax  law  is  amended  by
adding a new subdivision 4-d to read as follows:
  4-D.  (A) ANY SUCH LOCAL LAW MAY ALSO PROVIDE THAT A GROUP OF MULTIPLE
DWELLINGS WHICH IS OWNED AND OPERATED BY A MUTUAL REDEVELOPMENT  COMPANY
ESTABLISHED  PURSUANT TO ARTICLE FIVE OF THE PRIVATE HOUSING FINANCE LAW
WHICH CONTAINS A TOTAL OF TWENTY-EIGHT HUNDRED OR  MORE  DWELLING  UNITS
SHALL  BE  ELIGIBLE  FOR TAX EXEMPTION AND ABATEMENT FOR THE REPLACEMENT
AND IMPROVEMENT OF THE EXISTING HEATING,  VENTILATION  AND  AIR  COOLING
SYSTEM  AND ASSOCIATED ASBESTOS ABATEMENT OR REMOVAL AS PROVIDED IN THIS
SUBDIVISION.
  (B) ANY INCREASE IN ASSESSED VALUATION RESULTING FROM THE  REPLACEMENT
AND  IMPROVEMENT  OF  THE  EXISTING HEATING, VENTILATION AND AIR COOLING
SYSTEM AND ASSOCIATED ASBESTOS ABATEMENT  OR  REMOVAL  TO  ONE  OR  MORE
MULTIPLE  DWELLINGS  WHICH ARE OWNED AND OPERATED BY A MUTUAL REDEVELOP-
MENT COMPANY AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL  BE
EXEMPT  FROM TAXATION FOR LOCAL PURPOSES.  SUCH EXEMPTION SHALL BE EQUAL
TO THE INCREASE IN THE VALUATION WHICH IS  SUBJECT  TO  EXEMPTION  UNDER
THIS  PARAGRAPH  FOR THIRTY YEARS. AFTER SUCH PERIOD OF TIME, THE AMOUNT
OF SUCH EXEMPTED ASSESSED VALUE SHALL BE REDUCED BY  TWENTY  PERCENT  IN
EACH  SUCCEEDING  YEAR  UNTIL  THE  ASSESSED VALUE OF THE ALTERATIONS OR
IMPROVEMENTS IS FULLY TAXABLE. SUCH EXEMPTION MAY COMMENCE AT THE BEGIN-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14258-03-0

S. 5956--A                          2

NING OF ANY TAX QUARTER SUBSEQUENT TO THE START OF SUCH  ALTERATIONS  OR
IMPROVEMENTS. IN NO EVENT SHALL SUCH ALTERATIONS OR IMPROVEMENTS DIRECT-
LY  OR  INDIRECTLY  RESULT  IN  AN EQUALIZATION INCREASE IN THE ASSESSED
VALUATION OF ANY MULTIPLE DWELLING FORMING PART OF THE MUTUAL REDEVELOP-
MENT COMPANY WHERE SUCH ALTERATIONS OR IMPROVEMENTS ARE PERFORMED.
  (C) THE ABATEMENT OF TAXES IN A MUTUAL REDEVELOPMENT COMPANY DESCRIBED
IN  PARAGRAPH  (A)  OF  THIS  SUBDIVISION, INCLUDING THE LAND, SHALL NOT
EXCEED THE GREATER OF (I) ONE HUNDRED FIFTY PER CENTUM OF THE  CERTIFIED
REASONABLE COST OF THE REPLACEMENT AND IMPROVEMENT OF THE EXISTING HEAT-
ING,  VENTILATION  AND AIR COOLING SYSTEM AND ASSOCIATED ASBESTOS ABATE-
MENT OR REMOVAL, AS DETERMINED UNDER THE REGULATIONS OF THE LOCAL  HOUS-
ING  AGENCY  ADMINISTERING THE LOCAL LAW, OR (II) THIRTY-FIVE PER CENTUM
OF THE  ACTUAL  CONTRACTED  CONSTRUCTION  COST  OF  ALL  ALTERATIONS  OR
IMPROVEMENTS  MADE  TO  AND  IN  CONJUNCTION WITH THE REPLACEMENT OF THE
EXISTING HEATING, VENTILATION AND AIR COOLING SYSTEM AND ASBESTOS ABATE-
MENT OR REMOVAL, WHETHER OR NOT SUCH ITEMS ARE CURRENTLY  IDENTIFIED  IN
THE REGULATIONS OF THE LOCAL HOUSING AGENCY. SUCH ABATEMENT SHALL NOT BE
EFFECTIVE  FOR  MORE THAN TWENTY YEARS AND THE ANNUAL ABATEMENT OF TAXES
IN ANY CONSECUTIVE TWELVE-MONTH PERIOD SHALL NOT BE GREATER  THAN  EIGHT
AND  ONE-THIRD  PER  CENTUM OF THE TOTAL ABATEMENT GRANTED AND SHALL NOT
EXCEED THE AMOUNT OF TAXES  PAYABLE  IN  SUCH  CONSECUTIVE  TWELVE-MONTH
PERIOD.  SUCH  ABATEMENT  SHALL BEGIN NO SOONER THAN THE FIRST QUARTERLY
TAX BILL IMMEDIATELY FOLLOWING THE COMPLETION  OF  SUCH  ALTERATIONS  OR
IMPROVEMENTS.  THE  LIMITATIONS  SET  FORTH  IN SUBDIVISION FOUR OF THIS
SECTION FOR MULTIPLE DWELLINGS, BUILDINGS AND STRUCTURES OWNED AS  COOP-
ERATIVES  SHALL  BE  INAPPLICABLE  TO  BENEFITS GRANTED PURSUANT TO THIS
SUBDIVISION.
  (D) IN THE EVENT THAT MULTIPLE ALTERATIONS OR IMPROVEMENTS ARE  UNDER-
TAKEN  IN  A  MUTUAL REDEVELOPMENT COMPANY DESCRIBED IN PARAGRAPH (A) OF
THIS SUBDIVISION, AND SEPARATE APPLICATIONS FOR  BENEFITS  THEREFOR  ARE
MADE,  ALL  REQUIREMENTS CONCERNING PHYSICAL CONDITION OF AND COMPLIANCE
WITH LAW BY THE MULTIPLE DWELLINGS IN SUCH REDEVELOPMENT  COMPANY  SHALL
APPLY  ONLY  UPON  COMPLETION  OF  ALL SUCH ALTERATIONS OR IMPROVEMENTS,
PROVIDED THAT ALL SUCH ALTERATIONS OR IMPROVEMENTS ARE COMPLETED  WITHIN
SIX YEARS.
  (E)  EXCEPT  AS  PROVIDED IN THIS SUBDIVISION, ALL OF THE REQUIREMENTS
IMPOSED BY THIS SECTION ON PROJECTS DESCRIBED IN PARAGRAPH (A) OF SUBDI-
VISION ONE OF  THIS  SECTION  SHALL  BE  APPLICABLE  TO  ALTERATIONS  OR
IMPROVEMENTS  GRANTED  BENEFITS PURSUANT TO THIS SUBDIVISION BUT NONE OF
THE LIMITATIONS OF PARAGRAPHS (B) AND (C) OF SUBDIVISION ELEVEN OF  THIS
SECTION SHALL BE APPLICABLE.
  (F)  THIS  SUBDIVISION  SHALL  BE  APPLICABLE  ONLY  TO ALTERATIONS OR
IMPROVEMENTS COMPLETED PRIOR  TO  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
FIFTEEN.
  S 2. This act shall take effect immediately.

2009-S5956B (ACTIVE) - Details

Law Section:: Real Property Tax Law
Laws Affected:: Amd §489, RPT L

2009-S5956B (ACTIVE) - Summary

2009-S5956B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5956B

TITLE OF BILL:
An act to amend the real property tax law, in relation to exemption from
taxation of alterations and improvements to certain multiple dwellings
to eliminate fire and health hazards

PURPOSE OR GENERAL IDEA OF BILL:
To let New York City expand J-5l tax abatement for the Penn South Houses
mutual redevelopment company for replacing heating, ventilation, and
air-cooling systems.

SUMMARY OF SPECIFIC PROVISIONS:
Add, a new subdivision 4-d to Real Property Tax Law § 489. Paragraph (a)
limits the provisions of this bill to multiple dwellings owned and oper-
ated by a mutual redevelopment company established pursuant to article
five of the private finance housing law with at least 2,800 units.

Paragraph (b) provide, a J-51 tax exemption for any increase in assessed
value that results from the alterations and improvements.

Paragraph (c) provides for a tax abatement that shall not exceed the
greater of 150 percent of certified reasonable cost or 35 percent of
actual cost of alterations or improvements. The abatement is to be
applied as a credit against real estate taxes at a rate up to 8 1/3
percent a year. If the designated amount cannot be credited each year

for any reason, (e.g. it exceeds amount of tax payable) it can be used
in any of the following B years.

Paragraph (d) would exempt the work from current provision, making J-51
benefit, available only if the property has no violation of local codes
concerning its physical condition. This provision would permit benefits
to start before violations are fully cleared.  Violations must be
cleared upon completion of alterations or improvements.

Paragraph (e) would waive limits on the amount of abatement or exemption
grant:ed to any apartment unit pursuant to subdivision 11, paragraphs
(b) and (e) of this section, which restricts the amount of abatement or
exemption granted to any apartment unit, since the new language in para-
graph (d) imposes a limit on benefits.

Paragraph (f) limits benefits to work completed by 2015.

JUSTIFICATION:
Penn South Houses is a non-profit cooperative development in Manhattan.
It is nearly 50 years old and requires extensive work on its heating and
ventilation systems.

Without this legislation. the necessary work would require substantial
rent increases. A large portion of Penn South's residents are limited
income seniors with Senior Citizen Rent Increase Exemption benefits, so

these rent increases would result in considerably increased SCRIE tax
abatements. Also, the amount of rent surcharge paid by higher-income
residents would be reduced, because more of their monthly payment would
be going to regular rent. Penn South pays a portion of its rent
surcharge income to the City. Thus, if this bill is not enacted, that
would cost the City an amount comparable to the J-51 benefits contem-
plated by this bill. So while this legislation provides substantial
protection co the development's residents, it would not significantly
affect the City financially.

As the only remaining Article V limited equity coop, Penn South, a
2,802-unit development located in Manhattan, is the only development
subject to this legislation. Since its residents are concerned with the
continued maintenance and affordability of their buildings and not the
resale of their units (from which they are not permitted to profit),
this legislation will enable necessary repairs to be undertaken with
J-51 benefits thus preserving this unique and affordable housing
resource.

New York City's allowances for J-51 benefits would only cover a small
portion of Penn South's planned HVAC replacement. This legislation would
give the City authority to expand the J-51 abatement for this project,

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This bill shall take effect immediately.

2009-S5956B (ACTIVE) - Bill Text download pdf

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

                                 5956--B
    Cal. No. 284

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 19, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules  --  recommitted  to
  the  Committee  on  Local Government in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended  and  recommitted to said committee -- reported favorably from
  said committee, ordered to first and second report, ordered to a third
  reading, amended and ordered reprinted, retaining  its  place  in  the
  order of third reading

AN ACT to amend the real property tax law, in relation to exemption from
  taxation of alterations and improvements to certain multiple dwellings
  to eliminate fire and health hazards

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

  Section 1. Section 489 of the real property  tax  law  is  amended  by
adding a new subdivision 4-d to read as follows:
  4-D.  (A) ANY SUCH LOCAL LAW MAY ALSO PROVIDE THAT A GROUP OF MULTIPLE
DWELLINGS WHICH IS OWNED AND OPERATED BY A MUTUAL REDEVELOPMENT  COMPANY
ESTABLISHED  PURSUANT TO ARTICLE FIVE OF THE PRIVATE HOUSING FINANCE LAW
WHICH CONTAINS A TOTAL OF TWENTY-EIGHT HUNDRED OR  MORE  DWELLING  UNITS
SHALL  BE  ELIGIBLE  FOR TAX EXEMPTION AND ABATEMENT FOR THE REPLACEMENT
AND IMPROVEMENT OF THE EXISTING HEATING,  VENTILATION  AND  AIR  COOLING
SYSTEM  AND ASSOCIATED ASBESTOS ABATEMENT OR REMOVAL AS PROVIDED IN THIS
SUBDIVISION.
  (B) ANY INCREASE IN ASSESSED VALUATION RESULTING FROM THE  REPLACEMENT
AND  IMPROVEMENT  OF  THE  EXISTING HEATING, VENTILATION AND AIR COOLING
SYSTEM AND ASSOCIATED ASBESTOS ABATEMENT  OR  REMOVAL  TO  ONE  OR  MORE
MULTIPLE  DWELLINGS  WHICH ARE OWNED AND OPERATED BY A MUTUAL REDEVELOP-
MENT COMPANY AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL  BE
EXEMPT  FROM TAXATION FOR LOCAL PURPOSES.  SUCH EXEMPTION SHALL BE EQUAL
TO THE INCREASE IN THE VALUATION WHICH IS  SUBJECT  TO  EXEMPTION  UNDER
THIS  PARAGRAPH  FOR THIRTY YEARS. AFTER SUCH PERIOD OF TIME, THE AMOUNT

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

                                                           LBD14258-05-0

S. 5956--B                          2

OF SUCH EXEMPTED ASSESSED VALUE SHALL BE REDUCED BY  TWENTY  PERCENT  IN
EACH  SUCCEEDING  YEAR  UNTIL  THE  ASSESSED VALUE OF THE ALTERATIONS OR
IMPROVEMENTS IS FULLY TAXABLE. SUCH EXEMPTION MAY COMMENCE AT THE BEGIN-
NING  OF  ANY TAX QUARTER SUBSEQUENT TO THE START OF SUCH ALTERATIONS OR
IMPROVEMENTS. IN NO EVENT SHALL SUCH ALTERATIONS OR IMPROVEMENTS DIRECT-
LY OR INDIRECTLY RESULT IN AN  EQUALIZATION  INCREASE  IN  THE  ASSESSED
VALUATION OF ANY MULTIPLE DWELLING FORMING PART OF THE MUTUAL REDEVELOP-
MENT COMPANY WHERE SUCH ALTERATIONS OR IMPROVEMENTS ARE PERFORMED.
  (C) THE ABATEMENT OF TAXES IN A MUTUAL REDEVELOPMENT COMPANY DESCRIBED
IN  PARAGRAPH  (A)  OF  THIS  SUBDIVISION, INCLUDING THE LAND, SHALL NOT
EXCEED THE GREATER OF (I) ONE HUNDRED FIFTY PER CENTUM OF THE  CERTIFIED
REASONABLE COST OF THE REPLACEMENT AND IMPROVEMENT OF THE EXISTING HEAT-
ING,  VENTILATION  AND AIR COOLING SYSTEM AND ASSOCIATED ASBESTOS ABATE-
MENT OR REMOVAL, AS DETERMINED UNDER THE REGULATIONS OF THE LOCAL  HOUS-
ING  AGENCY  ADMINISTERING THE LOCAL LAW, OR (II) THIRTY-FIVE PER CENTUM
OF THE  ACTUAL  CONTRACTED  CONSTRUCTION  COST  OF  ALL  ALTERATIONS  OR
IMPROVEMENTS  MADE  TO  AND  IN  CONJUNCTION WITH THE REPLACEMENT OF THE
EXISTING HEATING, VENTILATION AND AIR COOLING SYSTEM AND ASBESTOS ABATE-
MENT OR REMOVAL, WHETHER OR NOT SUCH ITEMS ARE CURRENTLY  IDENTIFIED  IN
THE REGULATIONS OF THE LOCAL HOUSING AGENCY. SUCH ABATEMENT SHALL NOT BE
EFFECTIVE  FOR  MORE THAN TWENTY YEARS AND THE ANNUAL ABATEMENT OF TAXES
IN ANY CONSECUTIVE TWELVE-MONTH PERIOD SHALL NOT BE GREATER  THAN  EIGHT
AND  ONE-THIRD  PER  CENTUM OF THE TOTAL ABATEMENT GRANTED AND SHALL NOT
EXCEED THE AMOUNT OF TAXES  PAYABLE  IN  SUCH  CONSECUTIVE  TWELVE-MONTH
PERIOD.     THE  TOTAL  ABATEMENT  FOR  THE  PROJECT  SHALL  NOT  EXCEED
TWENTY-EIGHT MILLION DOLLARS.  SUCH ABATEMENT SHALL BEGIN NO SOONER THAN
THE FIRST QUARTERLY TAX BILL IMMEDIATELY  FOLLOWING  THE  COMPLETION  OF
SUCH  ALTERATIONS OR IMPROVEMENTS. THE LIMITATIONS SET FORTH IN SUBDIVI-
SION FOUR OF THIS SECTION FOR MULTIPLE DWELLINGS, BUILDINGS  AND  STRUC-
TURES  OWNED  AS  COOPERATIVES SHALL BE INAPPLICABLE TO BENEFITS GRANTED
PURSUANT TO THIS SUBDIVISION.
  (D) IN THE EVENT THAT MULTIPLE ALTERATIONS OR IMPROVEMENTS ARE  UNDER-
TAKEN  IN  A  MUTUAL REDEVELOPMENT COMPANY DESCRIBED IN PARAGRAPH (A) OF
THIS SUBDIVISION, AND SEPARATE APPLICATIONS FOR  BENEFITS  THEREFOR  ARE
MADE,  ALL  REQUIREMENTS CONCERNING PHYSICAL CONDITION OF AND COMPLIANCE
WITH LAW BY THE MULTIPLE DWELLINGS IN SUCH REDEVELOPMENT  COMPANY  SHALL
APPLY  ONLY  UPON  COMPLETION  OF  ALL SUCH ALTERATIONS OR IMPROVEMENTS,
PROVIDED THAT ALL SUCH ALTERATIONS OR IMPROVEMENTS ARE COMPLETED  WITHIN
SIX YEARS.
  (E)  EXCEPT  AS  PROVIDED IN THIS SUBDIVISION, ALL OF THE REQUIREMENTS
IMPOSED BY THIS SECTION ON PROJECTS DESCRIBED IN PARAGRAPH (A) OF SUBDI-
VISION ONE OF  THIS  SECTION  SHALL  BE  APPLICABLE  TO  ALTERATIONS  OR
IMPROVEMENTS  GRANTED  BENEFITS PURSUANT TO THIS SUBDIVISION BUT NONE OF
THE LIMITATIONS OF PARAGRAPHS (B) AND (C) OF SUBDIVISION ELEVEN OF  THIS
SECTION SHALL BE APPLICABLE.
  (F)  THIS  SUBDIVISION  SHALL  BE  APPLICABLE  ONLY  TO ALTERATIONS OR
IMPROVEMENTS COMPLETED PRIOR  TO  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
FIFTEEN.
  S 2. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Senate Bill S5956

Sponsored By

Archive: Last Bill Status - On Floor Calendar

Actions

Votes

Jul 16, 2009 - Rules Committee Vote

Rules Committee Vote: Jul 16, 2009

Mar 17, 2010 - Local Government Committee Vote

Local Government Committee Vote: Mar 17, 2010

Bill Amendments

2009-S5956 - Details

2009-S5956 - Summary

2009-S5956 - Sponsor Memo

2009-S5956 - Bill Text download pdf

2009-S5956A - Details

2009-S5956A - Summary

2009-S5956A - Sponsor Memo

2009-S5956A - Bill Text download pdf

2009-S5956B (ACTIVE) - Details

2009-S5956B (ACTIVE) - Summary

2009-S5956B (ACTIVE) - Sponsor Memo

2009-S5956B (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2009-S5956

Senate Bill S5956

Share this bill

Sponsored By

Carl Kruger

Archive: Last Bill Status - On Floor Calendar

Actions

Votes

Bill Amendments

2009-S5956 - Details

2009-S5956 - Summary

2009-S5956 - Sponsor Memo

2009-S5956 - Bill Text download pdf

2009-S5956A - Details

2009-S5956A - Summary

2009-S5956A - Sponsor Memo

2009-S5956A - Bill Text download pdf

2009-S5956B (ACTIVE) - Details

2009-S5956B (ACTIVE) - Summary

2009-S5956B (ACTIVE) - Sponsor Memo

2009-S5956B (ACTIVE) - Bill Text download pdf

Comments