Assembly Bill A10812

                                BILL NUMBER:A10812

TITLE  OF BILL:   An act to amend the real property tax law, in relation
to establishing a  residential  incentive  board  for  the  purposes  of
providing flexibility to local taxing jurisdictions for capital improve-
ments  made  to  residential property for the purposes of repairing such
property where environmental problems have arisen

PURPOSE OR GENERAL IDEA OF BILL:  To provide a mechanism by which  local
taxing  jurisdictions  can  encourage  the repair and/or construction to
dwellings that have been damaged by  an  environmental  condition  (e.g.
rising  water  table,  deficiency  in soil substance) by authorizing the
adoption of temporary assessment abatement.

SUMMARY OF SPECIFIC PROVISIONS:  The bill adds a new subdivision - 7-a -
to Section 421-f of the Real Property Tax Law. The provision within  7-a
would  authorize  local  taxing jurisdictions to establish a residential
incentive board (RIB). The RIB  would  be  responsible  for  determining
eligibility  requirements  and exemption limits for capital improvements
for residential property  that  has  been  damaged  and/or  in  need  of
improvements due to an environmental condition. It will be the responsi-
bility  of  the  RIB to determine what environmental conditions and what
geographical area(s) are eligible for the exemption as well as to deter-
mine the duration of the exemption, the allowable  exemption  percentage
and  the  maximum assessment abatement, not to exceed five hundred thou-
sand dollars.
              

In order to enact the recommendations  of  the  RIB,  the  local  taxing
jurisdiction   (to   include   school  districts)  must  adopt  a  local
law/resolution.

JUSTIFICATION:   This legislation would assist  homeowners  whose  homes
have  been damaged by environmental conditions and would provide a mech-
anism by which to encourage the repair of their  homes  resulting  in  a
revitalization  in  these  communities. Below are two separate instances
where, if enacted, this legislation could provide a practical  incentive
to  encourage  property  owners to repair and/or make necessary improve-
ments to address environmental conditions that have damaged their homes,
they are: Suffolk County: In 1994, thirty-three residential  homes  were
built  on  Bishop  Lane in Holbrook as the second phase of a development
project. These homes were constructed with their cellar/basement  floors
located  within close proximately to the regional water table elevation,
and as a result, are prone to groundwater infiltration.  In,  1998,  the
region  received  above  average precipitation that resulted in elevated
water table conditions. Many residents experienced basement flooding and
reportedly installed sump-pumps to address  the  water  invasion.  Since
October  of 2005, residents on Bishop Lane have consistently experienced
problems associated with  the  increase  in  annual  rainfall  that  has
resulted  in an elevated water table. The wet and damp basements are not
only seen as an inconvenience, but also a health problem. This condition
has significantly impacted the quality of life for these  homeowners  as
well as reduced the overall value of their homes.

Erie  County:  Residents  in  certain  areas of the Town of Amherst have
suffered major structural damage to their homes caused  by  soil  subsi-
dence.  In  some  cases, the cost of repairs approaches the value of the
house, and many homes face repairs that are far more costly  than  home-
owners  would ordinarily expect to pay for regular maintenance.  Assess-
ments on many of these homes have been reduced, reflecting the reduction
in value caused by these damages.

Extending the exemption to provide the locality greater flexibility in a
capital improvement exemption will allow localities such as Holbrook and
Amherst to protect its real property tax base and  would  encourage  the
necessary  repair  of  homes, while offering real property tax relief to
homeowners who have suffered significant damage to their  homes  due  to
unforeseen environmental conditions.

PRIOR LEGISLATIVE HISTORY: A9418 of 2007

FISCAL IMPLICATIONS:  None to the State

EFFECTIVE DATE:  Immediately