NY State Senate Bill 2011-S5669

Senate Bill S5669

2011-2012 Legislative Session

Confirms eligibility for and directs the New York city department of finance to provide exemption from taxation for certain residential dwelling units

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities Committee

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

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to cities returned to senate died in assembly
Jun 21, 2011	referred to cities delivered to assembly passed senate ordered to third reading cal.1484 committee discharged and committed to rules
Jun 10, 2011	print number 5669a
Jun 10, 2011	amend and recommit to cities
Jun 09, 2011	referred to cities

Votes

- Jun 21, 2011 - Floor Vote
  S5669
  
  61
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 21, 2011
      
      aye (61)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Avella
      
      Ball
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Kennedy
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Martins
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      O'Mara
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Young
      
      Zeldin
      
      nay (1)
      
      Rivera
  Jun 21, 2011 - Rules Committee Vote
  S5669
  
  18
  
  Aye
  
  4
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 21, 2011
      
      aye (18)
      
      Alesi
      
      Breslin
      
      Dilan
      
      Duane
      
      Farley
      
      Hannon
      
      Johnson
      
      LaValle
      
      Larkin
      
      Libous
      
      Marcellino
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      Sampson
      
      Seward
      
      Skelos
      
      Smith
      
      nay (4)
      
      Hassell-Thompson
      
      Krueger
      
      Parker
      
      Perkins
      
      aye wr (2)
      
      Saland
      
      Stewart-Cousins

Bill Amendments

Original

A (Active)

2011-S5669 - Details

See Assembly Version of this Bill:: A8271
Current Committee:: Senate Cities
Law Section:: Real Property Taxation
Versions Introduced in Other Legislative Sessions:: 2013-2014: A5211
2015-2016: A3161
2017-2018: A7456

2011-S5669 - Summary

Confirms eligibility for and directs the New York city department of finance to provide exemption from taxation for certain residential dwelling units in the county of Richmond; provides that the exemption benefits shall be based upon all increases in assessed valuation, whether they are physical or equalization increases; sets forth the annual exemption benefits; provides that all exemption benefits prior to the current tax year shall result in credits to be applied to future taxes

2011-S5669 - Sponsor Memo

                                BILL NUMBER:S5669

TITLE OF BILL:
An act
to confirm eligibility for and direct the New York city department of
finance to provide exemption from taxation of certain residential
dwelling units in the county of Richmond

PURPOSE:
Confirms eligibility for and directs the New York city department of
finance to provide exemption from taxation of certain residential
dwelling units

SUMMARY:
Section 1 confirms eligibility for J-51 exemptions and abatements for
eight class A multiple dwellings comprised of more than 1,100 units
and occupied exclusively by low-income tenants receiving benefits
under Section 8, where certificates of eligibility for moderate
rehabilitation with enriched benefits were issued by the New York
City HPD on July 28, 2000 and January 30, 2002. Provides the standard
5-year graduated phase-out of benefits at the end of the 34-year
terms of eligibility for each project. Further provides that
exemption benefits shall be based upon all increases in the
buildings' assessed valuation, without regard to whether such
increase was the result of physical or equalization increases, and
that any exemption benefits created by this act for previous tax

years shall result in the creation of credits to reduce taxes for the
remainder of the benefit period.

Section 2 provides that this act shall take effect immediately

JUSTIFICATION:
The J-51 Program provides an incentive in the form of real estate tax
exemption(s) and/or abatement(s) to property owners who either
rehabilitate existing multiple dwellings or convert other buildings
to multiple dwellings to promote the creation and preservation of
affordable housing in the city of New York.

Parkhill I and II and St. George Plaza are an 8-building complex in
Staten Island containing 1,118 HUD Section 8 low-income dwelling
units. The buildings are restricted to serving only "very low income"
tenants and limited in the amount of profit that may be distributed
to building owners by a user agreement in effect until April 2063.
That agreement requires any excess, including recovered tax benefits,
to be deposited in a HUD-controlled residual receipts account used to
fund repairs, maintenance and upkeep of the properties.

In 1997 and 1998, the owners made approximately $11 million in
government funded renovations to the properties, which qualified the
properties for enriched real estate tax benefits under the 1-51
program. Despite the issuance of Certificates of Eligibility in 2000
and 2002, and
the full compliance of building owners with the terms of the J-51
program, the properties have not received the benefits to which they
are entitled, and their assessments have increased by more than 400%.


The loss of the promised tax benefit (approximately $8 million over
the previous 4 years) has resulted in monies being diverted from the
reserve accounts that are otherwise used to fund repairs, maintenance
and upkeep of the properties. The property owners have also had to
cut funding for community-based activities and manned security at the
properties, which threatens to result in deterioration and increased
crime at this large, low-income complex.

This legislation is necessary to remedy this inequity, promote
investment in affordable housing and ensure that residents receive
the services they need for a safe and secure community.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S5669 - Bill Text download pdf

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

    S. 5669                                                  A. 8271

                       2011-2012 Regular Sessions

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

                              June 9, 2011
                               ___________

IN  SENATE -- Introduced by Sen. SAVINO -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Cities

IN ASSEMBLY -- Introduced by M. of A. TITONE -- read once  and  referred
  to the Committee on Cities

AN  ACT  to confirm eligibility for and direct the New York city depart-
  ment of finance to provide exemption from taxation of certain residen-
  tial dwelling units in the county of Richmond

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

  Section  1.  1.  Notwithstanding  any  law,  rule or regulation to the
contrary, where certificates of eligibility for moderate  rehabilitation
with  enriched  benefits  were issued by the New York city department of
housing preservation and development on July 28, 2000  and  January  30,
2002  for alterations and improvements constructed between 1997 and 2000
with regard to a group of eight class A multiple dwellings reflected  on
three separate tax lots, comprised of eleven hundred or more residential
rental  units  located  on  the same residential street in the county of
Richmond, exclusively occupied by low income tenants receiving  benefits
under  section  8 of the United States housing act of 1937 whose incomes
do not exceed 50 percent of the area median income, which are subject to
a 50-year use agreement pursuant to the United States low-income housing
preservation and resident homeownership act of 1990  and  funded  by  at
least  10  million dollars of federal subsidies, each such tax lot shall
be exempt from taxation for local purposes for 34  years  under  section
489  of  the real property tax law and section 11-243 of the administra-
tive code of the city of New York.  The  New  York  city  department  of
finance  is  hereby  directed  to  comply  with  the  provisions of this
section.
  2. For tax lots  granted  benefits  under  this  section  pursuant  to
certificates  of eligibility issued on July 28, 2000, exemption benefits

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13009-02-1

S. 5669                             2                            A. 8271

shall be based upon all increases in the buildings  assessed  valuation,
without  regard to whether such increases were the result of physical or
equalization increases, as follows:
  (a)  beginning  in  tax year 2001-2002 and ending at the completion of
tax year 2030-2031, the exemption benefit  shall  equal  the  difference
between  the  building  assessed  value  for  that tax year and tax year
1997-1998 multiplied by the then current overall class 2 tax rate;
  (b) for tax year 2031-2032, the exemption benefit shall  equal  eighty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2001-2002  multiplied
by the then current class 2 tax rate;
  (c)  for  tax  year 2032-2033, the exemption benefit shall equal sixty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2001-2002 multiplied
by the then current class 2 tax rate;
  (d) for tax year 2033-2034, the exemption benefit  shall  equal  forty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2001-2002  multiplied
by the then current class 2 tax rate.
  (e)  for  tax year 2034-2035, the exemption benefit shall equal twenty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2001-2002 multiplied
by the then current class 2 tax rate.
  3. For tax lots  granted  benefits  under  this  section  pursuant  to
certificates  of eligibility issued on January 30, 2002, exemption bene-
fits shall be based upon all increases in the buildings  assessed  valu-
ation, without regard to whether such increases were the result of phys-
ical or equalization increases, as follows:
  (a)  beginning  in  tax year 2002-2003 and ending at the completion of
tax year 2031-2032, the exemption benefit  shall  equal  the  difference
between  the  building  assessed  value  for  that tax year and tax year
1998-1999 multiplied by the then current overall class 2 tax rate;
  (b) for tax year 2032-2033, the exemption benefit shall  equal  eighty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2002-2003  multiplied
by the then current class 2 tax rate;
  (c)  for  tax  year 2033-2034, the exemption benefit shall equal sixty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2002-2003 multiplied
by the then current class 2 tax rate;
  (d) for tax year 2034-2035, the exemption benefit  shall  equal  forty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2002-2003  multiplied
by the then current class 2 tax rate;
  (e)  for  tax year 2035-2036, the exemption benefit shall equal twenty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2002-2003 multiplied
by the then current class 2 tax rate;
  4. For all tax years prior to the tax year in  which  this  act  takes
effect,  all exemption benefits created pursuant to subdivisions two and
three of this section shall result in the creation of credits. The total
of all credits for tax years prior to the tax year  in  which  this  act
takes effect shall be applied by the New York city department of finance
to  reduce  taxes  for the remainder of the benefit period, beginning in
the first tax year in which this  act  takes  effect  through  tax  year
2035-2036.

S. 5669                             3                            A. 8271

  5.  The  New York city department of housing preservation and develop-
ment is hereby  empowered  to  grant  an  extension  of  the  period  of
completion  for any project described in subdivision one of this section
if such alterations or improvements are completed within 96 months  from
commencement of construction; provided that such conversion, alterations
or  improvements  shall  in any event be completed prior to December 31,
2013.
  S 2. This act shall take effect immediately.

2011-S5669A (ACTIVE) - Details

See Assembly Version of this Bill:: A8271
Current Committee:: Senate Cities
Law Section:: Real Property Taxation
Versions Introduced in Other Legislative Sessions:: 2013-2014: A5211
2015-2016: A3161
2017-2018: A7456

2011-S5669A (ACTIVE) - Summary

2011-S5669A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5669A

TITLE OF BILL:
An act
to confirm eligibility for and direct the New York city department of
finance to provide exemption from taxation of certain residential
dwelling units in the county of Richmond

PURPOSE:
Confirms eligibility for and directs the New York city department of
finance to provide exemption from taxation of certain residential
dwelling units

SUMMARY:
Section 1 confirms eligibility for J-51 exemptions and abatements for
eight class A multiple dwellings comprised of more than 1,100 units
and occupied exclusively by low-income tenants receiving benefits
under Section 8, where certificates of eligibility for moderate
rehabilitation with enriched benefits were issued by the New York
City HPD on July 28, 2000 and January 30, 2002. Provides the standard
5-year graduated phase-out of benefits at the end of the 34-year
terms of eligibility for each project. Further provides that
exemption benefits shall be based upon all increases in the
buildings' assessed valuation, without regard to whether such
increase was the result of physical or equalization increases, and
that any exemption benefits created by this act for previous tax

years shall result in the creation of credits to reduce taxes for the
remainder of the benefit period.

Section 2 provides that this act shall take effect immediately

JUSTIFICATION:
The J-51 Program provides an incentive in the form of real estate tax
exemption(s) and/or abatement(s) to property owners who either
rehabilitate existing multiple dwellings or convert other buildings
to multiple dwellings to promote the creation and preservation of
affordable housing in the city of New York.

Parkhill I and II and St. George Plaza are an 8-building complex in
Staten Island containing 1,118 HUD Section 8 low-income dwelling
units. The buildings are restricted to serving only "very low income"
tenants and limited in the amount of profit that may be distributed
to building owners by a user agreement in effect until April 2063.
That agreement requires any excess, including recovered tax benefits,
to be deposited in a HUD-controlled residual receipts account used to
fund repairs, maintenance and upkeep of the properties.

In 1997 and 1998, the owners made approximately $11 million in
government funded renovations to the properties, which qualified the
properties for enriched real estate tax benefits under the J-51
program. Despite the issuance of Certificates of Eligibility in 2000
and 2002, and the full compliance of building owners with the terms
of the J-51 program, the properties have not received the benefits to
which they are entitled, and their assessments have increased by more
than 400%


The loss of the promised tax benefit (approximately $8 million over
the previous 4 years) has resulted in monies being diverted from the
reserve accounts that are otherwise used to fund repairs, maintenance
and upkeep of the properties. The property owners have also had to
cut funding for community-based activities and manned security at the
properties, which threatens to result in deterioration and increased
crime at this large, low-income complex.

This legislation is necessary to remedy this inequity, promote
investment in affordable housing and ensure that residents receive
the services they need for a safe and secure community.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S5669A (ACTIVE) - Bill Text download pdf

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

    S. 5669--A                                            A. 8271--A

                       2011-2012 Regular Sessions

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

                              June 9, 2011
                               ___________

IN  SENATE -- Introduced by Sen. SAVINO -- read twice and ordered print-
  ed, and when printed to be committed to the  Committee  on  Cities  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

IN ASSEMBLY -- Introduced by M. of A. TITONE -- read once  and  referred
  to  the  Committee  on  Cities  -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to confirm eligibility for and direct the New York  city  depart-
  ment of finance to provide exemption from taxation of certain residen-
  tial dwelling units in the county of Richmond

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

  Section 1. 1. Notwithstanding any  law,  rule  or  regulation  to  the
contrary,  where certificates of eligibility for moderate rehabilitation
with enriched benefits were issued by the New York  city  department  of
housing  preservation  and  development on July 28, 2000 and January 30,
2002 for alterations and improvements constructed between 1997 and  2000
with  regard to a group of eight class A multiple dwellings reflected on
three separate tax lots, comprised of eleven hundred or more residential
rental units located on the same residential street  in  the  county  of
Richmond,  exclusively occupied by low income tenants receiving benefits
under section 8 of the United States housing act of 1937  whose  incomes
do not exceed 50 percent of the area median income, which are subject to
a 50-year use agreement pursuant to the United States low-income housing
preservation  and  resident  homeownership  act of 1990 and funded by at
least 10 million dollars of federal subsidies, each such tax  lot  shall
be  exempt  from  taxation for local purposes for 34 years under section
489 of the real property tax law and section 11-243 of  the  administra-
tive  code  of  the  city  of  New York. The New York city department of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13009-04-1

S. 5669--A                          2                         A. 8271--A

finance is hereby  directed  to  comply  with  the  provisions  of  this
section.
  2.  For  tax  lots  granted  benefits  under  this section pursuant to
certificates of eligibility issued on July 28, 2000, exemption  benefits
shall  be  based upon all increases in the buildings assessed valuation,
without regard to whether such increases were the result of physical  or
equalization increases, as follows:
  (a)  beginning  in  tax year 2001-2002 and ending at the completion of
tax year 2030-2031, the exemption benefit  shall  equal  the  difference
between  the  building  assessed  value  for  that tax year and tax year
1997-1998 multiplied by the then current overall class 2 tax rate;
  (b) for tax year 2031-2032, the exemption benefit shall  equal  eighty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2001-2002  multiplied
by the then current class 2 tax rate;
  (c)  for  tax  year 2032-2033, the exemption benefit shall equal sixty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2001-2002 multiplied
by the then current class 2 tax rate;
  (d) for tax year 2033-2034, the exemption benefit  shall  equal  forty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2001-2002  multiplied
by the then current class 2 tax rate.
  (e)  for  tax year 2034-2035, the exemption benefit shall equal twenty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2001-2002 multiplied
by the then current class 2 tax rate.
  3. For tax lots  granted  benefits  under  this  section  pursuant  to
certificates  of eligibility issued on January 30, 2002, exemption bene-
fits shall be based upon all increases in the buildings  assessed  valu-
ation, without regard to whether such increases were the result of phys-
ical or equalization increases, as follows:
  (a)  beginning  in  tax year 2002-2003 and ending at the completion of
tax year 2031-2032, the exemption benefit  shall  equal  the  difference
between  the  building  assessed  value  for  that tax year and tax year
1998-1999 multiplied by the then current overall class 2 tax rate;
  (b) for tax year 2032-2033, the exemption benefit shall  equal  eighty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2002-2003  multiplied
by the then current class 2 tax rate;
  (c)  for  tax  year 2033-2034, the exemption benefit shall equal sixty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2002-2003 multiplied
by the then current class 2 tax rate;
  (d) for tax year 2034-2035, the exemption benefit  shall  equal  forty
percent  of  the  difference  between the then current building assessed
value and the building assessed value in tax year  2002-2003  multiplied
by the then current class 2 tax rate;
  (e)  for  tax year 2035-2036, the exemption benefit shall equal twenty
percent of the difference between the  then  current  building  assessed
value  and  the building assessed value in tax year 2002-2003 multiplied
by the then current class 2 tax rate;
  4. For all tax years prior to the tax year in  which  this  act  takes
effect,  all exemption benefits created pursuant to subdivisions two and
three of this section shall result in the creation of credits. The total
of all credits for tax years prior to the tax year  in  which  this  act

S. 5669--A                          3                         A. 8271--A

takes effect shall be applied by the New York city department of finance
to  reduce  taxes  for the remainder of the benefit period, beginning in
the first tax year in which this  act  takes  effect  through  tax  year
2035-2036.
  5.  The  New York city department of housing preservation and develop-
ment is hereby  empowered  to  grant  an  extension  of  the  period  of
completion for any project described in subdivision one of this section,
where  construction  commenced  in 2005, if such alterations or improve-
ments are completed within 96 months from commencement of  construction;
provided  that such conversion, alterations or improvements shall in any
event be completed prior to December 31, 2013.
  S 2. This act shall take effect immediately.

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