senate Bill S7648

2011-2012 Legislative Session

Extends until June 1, 2013, the deadline for local legislative action providing tax incentives for the rehabilitation or improvement of multiple dwellings

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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 14, 2012 referred to real property taxation
delivered to assembly
passed senate
ordered to third reading cal.1264
Jun 11, 2012 referred to rules

Votes

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S7648 - Bill Details

Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยง489, RPT L

S7648 - Bill Texts

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Extends until June 1, 2013, the deadline for local legislative action providing tax incentives for the rehabilitation or improvement of multiple dwellings.

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BILL NUMBER:S7648

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

PURPOSE:
To extend the J-51 program of tax abatements for the renovation and
upgrading of multiple dwellings.

SUMMARY:
This bill extends Section 489 of the Real property Tax law known as the
City of New York as the J-51 program. It would extend retroactively,
from June 1, 2011 until June 1, 2013, the deadline for local legislative
action providing tax incentives for the rehabilitation and upgrading of
multiple dwellings. Currently the law also provides that in order to be
eligible to receive J-51 benefits, a development must have been
completed prior to December 31, 2011. This amendment would authorize
the local legislative body to extend that date until December 31, 2013.

JUSTIFICATION:
The continuing shortage of affordable housing in the City of New York
requires the extension of tax exemption programs that serve as an incen-
tive to owners to maintain and upgrade existing multiple dwellings. J-51
benefits apply to a variety of improvements including, but not limited
to, the installation or replacement of heating systems, plumbing,
wiring, elevators, windows and a range of other major capital improve-
ments. The program also grants tax benefits to owners of non-residential
buildings who convert their buildings to residential use. The program
issues 14 or 34 year exemptions from taxes on any increase in assessed
valuation resulting from those alterations certified by the City's
Department of Housing Preservation and Development ("HPD") and an abate-
ment of property taxes of construction costs as certified by HPD.

The J-51 program has been primarily responsible for the rehabilitation
and upgrading of New York City's housing stock since 1955. It has also
been essential in ensuring that affordable housing will continue to be
available to the residents of New York City.

LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
Immediately, and retroactively to the date of the expiration of the
authority for the City to enact J-51 legislation, June 1, 2011.

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

                                  7648

                            I N  S E N A T E

                              June 11, 2012
                               ___________

Introduced  by  Sen.  YOUNG  -- 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 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 paragraph (a) of subdivision 1 of
section 489 of the real property tax law, as amended by chapter  244  of
the laws of 2006, is amended to read as follows:
  Any  city  to  which  the  multiple dwelling law is applicable, acting
through its local legislative body or other governing agency, is  hereby
authorized  and  empowered,  to  and  including June first, two thousand
[eleven] THIRTEEN, to adopt and amend local laws or ordinances providing
that any increase in assessed valuation of real property shall be exempt
from taxation for local purposes, as provided herein, to the extent such
increase results from:
  S 2. The closing paragraph of  subparagraph  6  of  paragraph  (a)  of
subdivision 1 of section 489 of the real property tax law, as amended by
chapter 244 of the laws of 2006, is amended to read as follows:
  Such conversion, alterations or improvements shall be completed within
thirty-six  months  after the date on which same shall be started except
that such thirty-six month limitation shall not apply to conversions  of
residential units which are registered with the loft board in accordance
with  article  seven-C of the multiple dwelling law pursuant to subpara-
graph one of this paragraph.  Notwithstanding  the  foregoing,  a  sixty
month  period  for  completion  shall  be  available  for alterations or
improvements undertaken by a housing development fund company  organized
pursuant to article eleven of the private housing finance law, which are
carried  out  with the substantial assistance of grants, loans or subsi-
dies from any federal, state or local governmental agency or  instrumen-
tality or which are carried out in a property transferred from such city
if  alterations  and improvements are completed within seven years after
the date of transfer. In addition, the local housing  agency  is  hereby
empowered  to  grant  an  extension  of the period of completion for any

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15754-02-2

S. 7648                             2

project carried out with the substantial assistance of grants, loans  or
subsidies  from  any  federal,  state  or  local  governmental agency or
instrumentality, if such alterations or improvements are completed with-
in  sixty  months  from commencement of construction. Provided, further,
that such conversion, alterations or improvements shall in any event  be
completed   prior   to  December  thirty-first,  two  thousand  [eleven]
THIRTEEN. Exemption for conversions, alterations or improvements  pursu-
ant  to  subparagraph  one,  two,  three or four of this paragraph shall
continue for a period not to exceed fourteen years and begin  no  sooner
than  the  first quarterly tax bill immediately following the completion
of such conversion, alterations or improvements.  Exemption  for  alter-
ations  or  improvements  pursuant  to this subparagraph or subparagraph
five of this paragraph shall continue for a period not to  exceed  thir-
ty-four  years  and  shall  begin no sooner than the first quarterly tax
bill  immediately  following  the  completion  of  such  alterations  or
improvements. Such exemption shall be equal to the increase in the valu-
ation which is subject to exemption in full or proportionally under this
subdivision for ten or thirty years, whichever is applicable. After such
period  of  time, the amount of such exempted assessed valuation of such
improvements shall be reduced by twenty percent in each succeeding  year
until  the  assessed  value  of  the  improvements  are  fully  taxable.
Provided, however, exemption for any conversion, alterations or improve-
ments which are aided by a loan or grant under article  eight,  eight-A,
eleven,  twelve,  fifteen  or  twenty-two of the private housing finance
law, section six hundred ninety-six-a or section  ninety-nine-h  of  the
general  municipal  law,  or section three hundred twelve of the housing
act of nineteen hundred sixty-four (42 U.S.C.A.  1452b),  or  the  Cran-
ston-Gonzalez  national  affordable  housing  act (42 U.S.C.A. 12701 et.
seq.), or started after July first, nineteen hundred eighty-three  by  a
housing development fund company organized pursuant to article eleven of
the  private housing finance law which are carried out with the substan-
tial assistance of grants, loans or subsidies from any federal, state or
local governmental agency or instrumentality or which are carried out in
a property transferred from any city and where alterations and  improve-
ments  are  completed  within seven years after the date of transfer may
commence at the beginning of any tax quarter subsequent to the start  of
such conversion, alterations or improvements and prior to the completion
of such conversion, alterations or improvements.
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 1, 2011.

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