NY State Senate Bill 2009-S8157

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
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Delivered to Governor
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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 14, 2010	referred to rules

2009-S8157 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Real Property Tax Law
Laws Affected:: Amd §421-a, RPT L

2009-S8157 (ACTIVE) - Summary

Relates to tax exemptions for new multiple dwellings in New York city upon which construction is commenced before December 28, 2014.

2009-S8157 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8157

TITLE OF BILL:
An act to amend the real property tax law, in relation to tax
exemptions for new multiple dwellings

SUMMARY OF PROVISIONS:
This bill amends Section 421-a of the Real Property Tax Law by
extending the benefits thereof for projects commencing before December
28, 2010 to projects commencing before December 28, 2014. It also (a)
amends the definition of commencement to mean the date that, pursuant
to a permit approved by a department of buildings, (i) a new metal or
concrete structure that shall perform a load bearing function is
installed as part of a foundation, (ii) at least one fully driven pile
or caisson is installed, or (iii) the actual construction, alteration
or improvement of a pre-existing building or structure begins in a
project that includes new residential construction and the concurrent
conversion, alteration or improvement of a pre-existing building or
structure; provided, however, that with respect to all of these
options, the construction of such multiple dwelling is completed
without undue delay, (b) eliminates the requirement that a separate
application be filed with the assessors, (c) mandates the prescribed
filing fees, and (d) changes a section reference to reflect
renumbering in the New York City Zoning Resolution.

REASONS FOR SUPPORT:

Section 421-a of the Real property Tax Law has provided tax benefits
for construction of new residential buildings in the City of New York
since 1971. Section 421-a benefits are available for up to twenty-five
years depending upon the location of the multiple dwelling. It
provides a period of full exemption followed by a phase-out to full
taxation. The continuing shortage of affordable housing in the City of
New York necessitates the extension of this essential tax exemption
program that serves as an incentive for the development of new
housing,

The 421-a program has been primarily responsible for encouraging the
construction of new housing in New York City since 1971. Since 1985,
the 421-a program has also been responsible for generating affordable
units both in Manhattan and 111 the outer boroughs. The proposed
legislation will ensure that the 421-a program continues to fulfill
this mission.

The proposed legislation also makes other changes to the 421-a
program. First, it provides an amended definition of commencement of
construction to more accurately reflect current standards and
practices. Local law now requires the Issuance of permits pursuant to
approved architectural, structural and plumbing plans in order for a
project to be deemed to have been commenced. In practice, though, full
permits based upon approved plumbing plans are not issued until much
later 111 the construction process, The proposed legislation
eliminates this requirement and recognizes that installation of a new
metal or concrete structure that will perform a load bearing function
pursuant to any approved permit meets the definition of commencement
of construction. Additionally, under this definition, the installation
of at least one fully driven pile or caisson pursuant to an approved


permit or actual start of work on the conversion, alteration or
improvement of a pre-existing building or structure incorporated into
the new multiple dwelling pursuant to an approved permit; also
constitute the commencement of construction.  In all instances, the
construction must be completed without undue delay.

In addition, the proposed legislation eliminates the requirement that
applications for 421-a benefits file a separate application with the
City of New York's Department of Finance. This will streamline the
application process and eliminate unnecessary paperwork. The proposed
legislation also makes the current application fee provisions
mandatory so that the local housing agency need not promulgate rules
to implement them.

Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

EFFECTIVE DATE:
Immediately.

2009-S8157 (ACTIVE) - Bill Text download pdf

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

                                  8157

                            I N  S E N A T E

                              June 14, 2010
                               ___________

Introduced  by  Sen.  ESPADA -- 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 tax exemptions
  for new multiple dwellings

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

  Section  1.  The opening paragraph of item (A) of subparagraph (iv) of
paragraph (a) of subdivision 2 of section 421-a of the real property tax
law, as amended by chapter 618 of the laws of 2007, is amended  to  read
as follows:
  Unless excluded by local law, in the city of New York, the benefits of
this subparagraph shall be available in the borough of Manhattan for new
multiple  dwellings  on tax lots now existing or hereafter created south
of or adjacent to either side of one hundred tenth street  [which]  THAT
commence  construction after July first, nineteen hundred ninety-two and
before December twenty-eighth, two thousand [ten] FOURTEEN only if:
  S 2. Subparagraph (ii) of paragraph (c) of subdivision  2  of  section
421-a  of  the  real  property tax law, as amended by chapter 618 of the
laws of 2007, is amended to read as follows:
  (ii) construction is commenced after January first,  nineteen  hundred
seventy-five and before December twenty-eighth, two thousand [ten] FOUR-
TEEN provided, however, that such commencement period shall not apply to
multiple  dwellings  eligible  for  benefits  under subparagraph (iv) of
paragraph (a) of this subdivision;
  S 3. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
erty tax law, as amended by chapter 995 of the laws of 1981, is  amended
to read as follows:
  (g)  [For]  NOTWITHSTANDING  ANYTHING TO THE CONTRARY CONTAINED IN ANY
OTHER STATE OR LOCAL LAW, FOR purposes  of  this  section,  construction
shall  be deemed "commenced" [when excavation or alteration has begun in
good faith on the basis of approved construction plans]  UPON  THE  DATE
THAT,  PURSUANT TO ANY PERMIT APPROVED BY A DEPARTMENT OF BUILDINGS, (I)
A NEW METAL OR CONCRETE STRUCTURE THAT  SHALL  PERFORM  A  LOAD  BEARING
FUNCTION  IS  INSTALLED AS PART OF A FOUNDATION, (II) AT LEAST ONE FULLY

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

                                                           LBD17737-02-0

S. 8157                             2

DRIVEN PILE OR CAISSON IS INSTALLED, OR (III) THE  ACTUAL  CONSTRUCTION,
ALTERATION,  OR  IMPROVEMENT  OF  A  PRE-EXISTING  BUILDING OR STRUCTURE
BEGINS IN A PROJECT THAT INCLUDES NEW RESIDENTIAL CONSTRUCTION  AND  THE
CONCURRENT  CONVERSION,  ALTERATION  OR  IMPROVEMENT  OF  A PRE-EXISTING
BUILDING OR STRUCTURE. PROVIDED, HOWEVER, THAT WITH RESPECT TO  SUBPARA-
GRAPHS  (I),  (II) AND (III) OF THIS PARAGRAPH, THE CONSTRUCTION OF SUCH
MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
  S 4. The opening paragraph and paragraph  (iv)  of  subdivision  3  of
section  421-a  of  the  real property tax law, the opening paragraph as
amended by chapter 655 of the laws of 1978 and paragraph (iv) as amended
by chapter 703 of the laws of 1976, are amended to read as follows:
  [Application forms for exemption under this  section  shall  be  filed
with the assessors between February first and March fifteenth and, based
on the certification of the local housing agency as herein provided, the
assessors shall certify to the collecting officer the amount of taxes to
be  abated.]  If  there be in a city of one million population or more a
department of housing preservation and development,  the  term  "housing
agency"  shall  mean  only  such  department of housing preservation and
development. [No such application shall be  accepted  by  the  assessors
unless accompanied by a certificate of the local housing agency certify-
ing the applicant's eligibility pursuant to subdivisions two and four of
this  section.]  No  [such]  certification  of  eligibility FOR BENEFITS
PURSUANT TO THIS SECTION shall be issued by  the  local  housing  agency
until  such  agency  determines  the initial adjusted monthly rent to be
paid by tenants residing in rental dwelling units contained  within  the
multiple  dwelling  and the comparative adjusted monthly rent that would
have to be paid by such tenants if no tax exemption were  applicable  as
provided  by  this  section.   The initial adjusted monthly rent will be
certified by the local housing agency as the first rent for the  subject
dwelling  units. A copy of such certification with respect to such units
shall be attached by the applicant to the first effective lease or occu-
pancy agreement. The initial adjusted monthly  rent  shall  reflect  the
full tax exemption benefits as approved by the agency.
  (iv)  The adjusted monthly rent per room per month shall be multiplied
by the room count of each rental dwelling unit to  provide  the  initial
adjusted  monthly  rent  for  such  dwelling  unit. The agency may allow
adjustments in the initial adjusted  monthly  rent  for  any  particular
dwelling  units  provided that the total of the initial adjusted monthly
rents for all of the rental dwelling units in a multiple dwelling  shall
not exceed the total expenses of such multiple dwelling.
  The  agency shall determine the estimated comparative adjusted monthly
rent that would have to be paid if no tax exemption were  applicable  as
provided by this section by adding to the adjusted monthly rent for each
dwelling unit as hereinabove computed an amount equal to (a) the differ-
ence  between the projected real property taxes which would be levied on
the multiple dwelling and the land on which it is situated at  the  time
OF  estimated  initial  occupancy if no tax abatement were applicable as
provided by this section and the projected real property taxes  hereina-
bove  utilized in connection with the computation of total expenses; (b)
divided by the room count of the building as per this section;  and  (c)
multiplied  by  the applicants approved room count of each such dwelling
unit.
  The local housing agency may promulgate rules and regulations to carry
out the provisions of this section, not inconsistent with the provisions
hereof, [and may require a reasonable filing fee in an  amount  provided
by  such rules and regulations] INCLUDING, BUT NOT LIMITED TO, RULES AND

S. 8157                             3

REGULATIONS RELATING TO THE FILING FEE AUTHORIZED PURSUANT TO  PARAGRAPH
B OF SUBDIVISION FOUR OF THIS SECTION.
  S 5. Paragraph b of subdivision 4 of section 421-a of the real proper-
ty  tax  law, as added by chapter 744 of the laws of 2004, is amended to
read as follows:
  b. The local housing agency [may] SHALL require a filing  fee  not  to
exceed  the  greater  of  (i)  four-tenths  of  one percent of the total
project cost, or (ii) if the building will be owned as a cooperative  or
condominium,  four-tenths  of  one  percent of the total project cost or
four-tenths of one percent of the total project sell-out price stated in
the last amendment to the offering  plan  accepted  for  filing  by  the
attorney  general  of  the  state,  at the option of the applicant. Such
total project cost or total project sell-out price shall  be  determined
pursuant to rules promulgated by the local housing agency. Notwithstand-
ing  the foregoing, the local housing agency may promulgate rules impos-
ing an additional fee  if  an  application,  or  any  part  thereof,  or
submission  in connection therewith, is defective and such defect delays
the processing of such application or causes the local housing agency to
expend additional resources in the processing of such application.
  S 6. Subparagraph (i) of paragraph (a) of  subdivision  6  of  section
421-a  of the real property tax law, as added by chapter 110 of the laws
of 2005, is amended to read as follows:
  (i) "Covered project." (A) A new building located  within  the  Green-
point  -  Williamsburg waterfront exclusion area, (B) two or more build-
ings which are part of one contiguous development entirely located with-
in the Greenpoint - Williamsburg waterfront exclusion area, (C)  two  or
more  buildings  which  are located within the Greenpoint - Williamsburg
waterfront exclusion area and are part of a  single  development  parcel
specifically  identified  in section [62-831] 62-931 of the local zoning
resolution, or (D) where so authorized in writing by the  local  housing
agency,  one or more buildings located within the Greenpoint - Williams-
burg waterfront exclusion area and one or more buildings located outside
the Greenpoint -  Williamsburg  waterfront  exclusion  area  but  within
Community District Number One in the borough of Brooklyn. The cumulative
number of affordable units located outside the Greenpoint - Williamsburg
waterfront  exclusion  area  in all covered projects described in clause
(D) of this subparagraph  shall  not  exceed  two  hundred.  A  building
located  outside the Greenpoint - Williamsburg waterfront exclusion area
which is part of a covered project  described  in  clause  (D)  of  this
subparagraph  shall  not  contain  any  affordable units with respect to
which an application pending before a governmental entity on the  effec-
tive  date  of  this subdivision or a written agreement in effect on the
effective date of this subdivision provided for the development of  such
affordable units.
  S 7. This act shall take effect immediately.

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Senate Bill S8157

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

2009-S8157 (ACTIVE) - Details

2009-S8157 (ACTIVE) - Summary

2009-S8157 (ACTIVE) - Sponsor Memo

2009-S8157 (ACTIVE) - Bill Text download pdf

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Sponsored By

Pedro Espada Jr.

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

2009-S8157 (ACTIVE) - Details

2009-S8157 (ACTIVE) - Summary

2009-S8157 (ACTIVE) - Sponsor Memo

2009-S8157 (ACTIVE) - Bill Text download pdf

Comments