NY State Senate Bill 2011-S1890

Senate Bill S1890

2011-2012 Legislative Session

Authorizes real property tax exemptions for certain construction and improvements to multiple dwellings in certain cities

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to housing, construction and community development
Jan 13, 2011	referred to housing, construction and community development

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2011-S1890 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Add §421-l, RPT L
Versions Introduced in 2009-2010 Legislative Session:: S1085

2011-S1890 (ACTIVE) - Summary

Authorizes real property tax exemptions for certain construction and improvements to multiple dwellings in certain cities.

2011-S1890 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1890

TITLE OF BILL:
An act
to amend the real property tax law, in relation to exempting certain
construction, reconstruction, alteration or improvement of multiple
dwelling buildings within certain cities from taxation and other
assessments

PURPOSE:
This bill would create a new Section 421-1 of the Real Property Tax
Law to authorize partial exemption from real property taxes for a
period of fifteen years for the construction of new residential
multiple dwelling or rehabilitation of existing housing stock in the
City of White Plains. The exemption would progress by stages, from
complete exemption of tax on the increased value of the land and
improvements thereon, to full taxes by the end of fifteen years.

SUMMARY OF PROVISIONS:

EXISTING LAW:
This legislation would authorize an exemption program that is
currently available only to cities with a census of one million or
more resident to a neighboring small city.

JUSTIFICATION:

This program would provide an incentive for the construction of new,
or rehabilitation of existing residential multiple dwellings in White
Plains, where twenty percent of the units be affordable to families
of low and moderate income. Projects meeting this twenty percent
criteria can receive a fifteen year exemption. This is known as the
80120 Program. The full exemption lasts for the period of
construction, or a period of three years immediately following
commencement of construction, whichever period expires sooner, and
for fifteen years thereafter, with a phase out in benefits from years
11-15.

Small cities are constantly pursuing innovative ways to encourage grow
and economic development. This legislation is essential to promoting
new construction of affordable housing, and will assist and sustain
economic growth.

LEGISLATIVE HISTORY:
01/26/09 REFERRED TO HOUSING, CONSTRUCTION & COMMUNITY DEVELOPMENT
05/19/09 AMEND AND RECOMMIT TO HOUSING, CONSTRUCTION & COMMUNITY
DEVELOPMENT
01/06/10 REFERRED TO HOUSING, CONSTRUCTION & COMMUNITY DEVELOPMENT

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S1890 (ACTIVE) - Bill Text download pdf

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

                                  1890

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 13, 2011
                               ___________

Introduced by Sens. OPPENHEIMER, DIAZ, PARKER, SAMPSON -- read twice and
  ordered  printed, and when printed to be committed to the Committee on
  Housing, Construction and Community Development

AN ACT to amend the real property tax  law,  in  relation  to  exempting
  certain  construction,  reconstruction,  alteration  or improvement of
  multiple dwelling buildings within certain cities  from  taxation  and
  other assessments

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

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 421-l to read as follows:
  S  421-L. EXEMPTION OF CERTAIN CONSTRUCTION OR IMPROVEMENTS IN CERTAIN
CITIES. 1. NEW CONSTRUCTION OF  A  MULTIPLE  DWELLING  BUILDING,  RECON-
STRUCTION, ALTERATION, OR IMPROVEMENT OF A PREEXISTING MULTIPLE DWELLING
BUILDING  OR STRUCTURE WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS A RESI-
DENCE OR HOME AND CONSISTS OF NO LESS  THAN  FOUR  UNITS,  WHETHER  SUCH
DWELLING  IS  RENTED  OR  OWNED  AS A COOPERATIVE OR CONDOMINIUM, AND IS
LOCATED IN ANY CITY HAVING A POPULATION OF MORE THAN  FIFTY-THREE  THOU-
SAND  SEVENTY  BUT  LESS THAN FIFTY-THREE THOUSAND ONE HUNDRED AS DETER-
MINED BY THE TWO THOUSAND FEDERAL DECENNIAL CENSUS SHALL BE EXEMPT  FROM
TAXATION  OTHER  THAN  ASSESSMENTS FOR LOCAL IMPROVEMENTS, TO THE EXTENT
PROVIDED IN THIS SECTION. AFTER A PUBLIC HEARING, THE GOVERNING BOARD OF
SUCH CITY MAY ADOPT A LOCAL LAW TO GRANT THE EXEMPTION AUTHORIZED PURSU-
ANT TO THIS SECTION. A COPY OF SUCH LOCAL LAW SHALL BE  FILED  WITH  THE
COMMISSIONER  AND  THE ASSESSOR OF SUCH CITY WHO PREPARES THE ASSESSMENT
ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
  2. (A) EXCEPT AS OTHERWISE PROVIDED HEREIN, SUCH BUILDINGS WITHIN SUCH
CITY SHALL BE EXEMPT DURING THE PERIOD OF CONSTRUCTION OR FOR  A  PERIOD
OF  THREE  YEARS IMMEDIATELY FOLLOWING THE COMMENCEMENT OF CONSTRUCTION,
WHICHEVER OCCURS EARLIER, AND THEN FOR A PERIOD OF ELEVEN  YEARS  THERE-
AFTER,  TO THE EXTENT OF ONE HUNDRED PERCENT OF THE INCREASE IN ASSESSED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06325-02-1

S. 1890                             2

VALUE ATTRIBUTABLE TO SUCH CONSTRUCTION, RECONSTRUCTION,  ALTERATION  OR
IMPROVEMENT,  AND  FOR  AN  ADDITIONAL  PERIOD OF FOUR YEARS AS PROVIDED
BELOW AND, SUBJECT, IN EACH CASE, TO THE FOLLOWING:
  (I)  FOLLOWING  SUCH  ELEVEN YEAR PERIOD, THE EXTENT OF SUCH EXEMPTION
SHALL BE DECREASED BY TWENTY PERCENT OF THE "EXEMPTION BASE"  EACH  YEAR
DURING  SUCH  ADDITIONAL FOUR YEAR PERIOD. THE "EXEMPTION BASE" SHALL BE
THE INCREASE IN ASSESSED VALUE AS DETERMINED IN THE INITIAL YEAR OF  THE
TERM  OF  THE EXEMPTION, EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH.
  (II) IN ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT  OF  FIFTEEN
PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE
RULES  OF  THE COMMISSIONER, THE EXEMPTION BASE SHALL BE MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TOTAL  ASSESSED  VALUE  OF
THE PARCEL ON SUCH FINAL ASSESSMENT ROLL (AFTER ACCOUNTING FOR ANY PHYS-
ICAL  OR  QUANTITY CHANGES TO THE PARCEL SINCE THE IMMEDIATELY PRECEDING
ASSESSMENT ROLL), AND THE  DENOMINATOR  OF  WHICH  SHALL  BE  THE  TOTAL
ASSESSED  VALUE OF THE PARCEL ON THE IMMEDIATELY PRECEDING FINAL ASSESS-
MENT ROLL. THE RESULT SHALL BE THE NEW  EXEMPTION  BASE.  THE  EXEMPTION
SHALL  THEREUPON  BE  RECOMPUTED  TO TAKE INTO ACCOUNT THE NEW EXEMPTION
BASE, NOTWITHSTANDING THE FACT THAT THE ASSESSOR RECEIVES  CERTIFICATION
OF  THE CHANGE IN LEVEL OF ASSESSMENT AFTER THE COMPLETION, VERIFICATION
AND FILING OF THE FINAL ASSESSMENT ROLL. IN THE EVENT THE ASSESSOR  DOES
NOT  HAVE  CUSTODY  OF THE ROLL WHEN SUCH CERTIFICATION IS RECEIVED, THE
ASSESSOR SHALL CERTIFY THE RECOMPUTED EXEMPTION TO  THE  LOCAL  OFFICERS
HAVING  CUSTODY  AND  CONTROL  OF  THE ROLL, AND SUCH LOCAL OFFICERS ARE
HEREBY DIRECTED AND AUTHORIZED TO ENTER THE RECOMPUTED EXEMPTION  CERTI-
FIED BY THE ASSESSOR ON THE ROLL. THE ASSESSOR SHALL GIVE WRITTEN NOTICE
OF  SUCH  RECOMPUTED  EXEMPTION TO THE PROPERTY OWNER, WHO MAY, IF HE OR
SHE BELIEVES THAT THE EXEMPTION WAS RECOMPUTED INCORRECTLY, APPLY FOR  A
CORRECTION IN THE MANNER PROVIDED BY TITLE THREE OF ARTICLE FIVE OF THIS
CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS.
  (B)  NO  SUCH  EXEMPTION  SHALL  BE  GRANTED  FOR CONSTRUCTION, RECON-
STRUCTION, ALTERATIONS OR IMPROVEMENTS UNLESS:
  (I) SUCH CONSTRUCTION, RECONSTRUCTION, ALTERATION OR  IMPROVEMENT  WAS
COMMENCED  SUBSEQUENT  TO  THE  EFFECTIVE  DATE OF THE LOCAL LAW ADOPTED
PURSUANT TO SUBDIVISION ONE OF THIS SECTION BY SUCH CITY; AND
  (II) THE VALUE OF  THE  CONSTRUCTION,  RECONSTRUCTION,  ALTERATION  OR
IMPROVEMENT  EXCEEDS,  ON AVERAGE, FIFTEEN THOUSAND DOLLARS PER DWELLING
UNIT; AND
  (III) THE CONSTRUCTION, RECONSTRUCTION, ALTERATION OR  IMPROVEMENT  IS
FINANCED  IN  WHOLE OR IN PART BY THE CITY, OR, WITH THE APPROVAL OF THE
GOVERNING BODY OF THE CITY, BY THE LOCAL URBAN RENEWAL AGENCY, THE LOCAL
HOUSING AUTHORITY OR ANOTHER PUBLIC BENEFIT CORPORATION; AND
  (IV) EITHER THE CITY, THE LOCAL URBAN RENEWAL AGENCY, THE LOCAL  HOUS-
ING  AUTHORITY  OR  ANOTHER  PUBLIC  BENEFIT  CORPORATION  HAS IMPOSED A
REQUIREMENT OR HAS CERTIFIED THAT TWENTY PERCENT OF THE UNITS BE AFFORD-
ABLE TO FAMILIES OF LOW AND MODERATE INCOME, FOR SUCH PERIOD  AND  UNDER
SUCH  CONDITIONS  AS  MAY  BE  ESTABLISHED FROM TIME TO TIME BY THE CITY
PURSUANT TO A LOCAL LAW.
  (C) FOR PURPOSES  OF  THIS  SECTION  THE  TERMS  CONSTRUCTION,  RECON-
STRUCTION, ALTERATION AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTE-
NANCE AND REPAIRS.
  3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH BUILDING ON A FORM PRESCRIBED BY THE COMMISSIONER. THE  APPLICA-
TION  SHALL  BE  FILED  WITH  THE ASSESSOR OF SUCH CITY ON OR BEFORE THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY.

S. 1890                             3

  4. IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION  PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
BUILDING  SHALL  THEREAFTER  BE EXEMPT FROM TAXATION AS PROVIDED IN THIS
SECTION COMMENCING WITH THE ASSESSMENT ROLL PREPARED ON THE BASIS OF THE
TAXABLE  STATUS  DATE  REFERRED TO IN SUBDIVISION THREE OF THIS SECTION.
THE ASSESSED VALUE OF ANY EXEMPTION GRANTED  PURSUANT  TO  THIS  SECTION
SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE
PROPERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
  5.  IN THE EVENT THAT A BUILDING GRANTED AN EXEMPTION PURSUANT TO THIS
SECTION CEASES TO BE USED PRIMARILY  FOR  RESIDENTIAL  PURPOSES  OR  ANY
CONDITION  TO  THE  EXEMPTION  ESTABLISHED  BY  A LOCAL LAW IS NO LONGER
SATISFIED, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
  6. IN ADDITION TO THE ABOVE PAYMENTS, DURING ANY  PERIOD  IN  WHICH  A
FULL  OR  PARTIAL  EXEMPTION  ESTABLISHED  ABOVE IS STILL IN EFFECT, THE
OWNER SHALL PAY IN EACH TAX YEAR IN WHICH SUCH FULL OR PARTIAL EXEMPTION
IS IN EFFECT, REAL PROPERTY TAXES AND ASSESSMENTS AS FOLLOWS:
  (A) REAL PROPERTY TAXES ON THE ASSESSED VALUATION OF SUCH LAND AND ANY
IMPROVEMENTS THEREON  IN  EFFECT  DURING  THE  TAX  YEAR  PRECEDING  THE
COMMENCEMENT  OF  SUCH  CONSTRUCTION  WITHOUT REGARD TO ANY EXEMPTION OR
ABATEMENT  FROM  REAL  PROPERTY  TAXATION  IN  EFFECT  PRIOR   TO   SUCH
CONSTRUCTION  WHICH  REAL  PROPERTY TAXES SHALL BE CALCULATED ON THE TAX
RATE IN EFFECT AT THE TIME SUCH TAXES ARE DUE; AND
  (B) ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
  7. (A) THE ENACTMENT OF A LOCAL LAW IN SUCH CITY MAY:
  (I) REDUCE THE PERCENT OR PERIOD OF EXEMPTION OTHERWISE ALLOWED PURSU-
ANT TO THIS SECTION;
  (II)  LIMIT  ELIGIBILITY  FOR  THE  EXEMPTION  TO   THOSE   FORMS   OF
CONSTRUCTION,   RECONSTRUCTION,   ALTERATIONS  OR  IMPROVEMENTS  AS  ARE
PRESCRIBED IN SUCH LAW OR RESOLUTION;
  (III) PROVIDE THAT THE EXEMPTION SHALL BE  APPLICABLE  ONLY  TO  THOSE
IMPROVEMENTS WHICH WOULD OTHERWISE RESULT IN AN INCREASE IN THE ASSESSED
VALUATION  OF THE REAL PROPERTY BUT WHICH CONSIST OF AN ADDITION, REMOD-
ELING OR MODERNIZATION TO AN EXISTING OWNER OCCUPIED MULTIPLE  RESIDENCE
STRUCTURE  TO  PREVENT  PHYSICAL  DETERIORATION  OF  THE STRUCTURE OR TO
COMPLY WITH APPLICABLE BUILDING, SANITARY, HEALTH AND/OR FIRE CODES; AND
  (IV) PROVIDE TERMS AND CONDITIONS UNDER WHICH THE CITY, OR, IF AUTHOR-
IZED BY A LOCAL LAW, A LOCAL  URBAN  RENEWAL  AGENCY,  MAY  REQUIRE  THE
RECAPTURE  OF  THE  BENEFITS  CONFERRED  HEREUNDER  IN WHOLE OR IN PART,
INCLUDING REQUIREMENTS TO MAINTAIN ALL OR A PORTION OF THE  BUILDING  AS
AFFORDABLE  UNITS  FOR  FAMILIES  OF LOW OR MODERATE INCOME FOR A PERIOD
WHICH MAY EXCEED THE PERIOD FOR WHICH AN EXEMPTION IS GRANTED.
  (B) NO SUCH LOCAL LAW SHALL REDUCE  OR  REPEAL  AN  EXEMPTION  GRANTED
PURSUANT  TO  THIS  SECTION UNTIL THE EXPIRATION OF THE PERIOD FOR WHICH
SUCH EXEMPTION WAS GRANTED.
  8. (A) AS USED IN THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (I) "BUILDING SERVICE EMPLOYEE" MEANS  ANY  PERSON  WHO  IS  REGULARLY
EMPLOYED  AT A BUILDING WHO PERFORMS WORK IN CONNECTION WITH THE CARE OR
MAINTENANCE OF SUCH BUILDING. "BUILDING SERVICE EMPLOYEE" INCLUDES,  BUT
IS  NOT  LIMITED  TO WATCHMAN, GUARD, DOORMAN, BUILDING CLEANER, PORTER,
HANDYMAN, JANITOR, GARDENER, GROUNDSKEEPER, ELEVATOR OPERATOR AND START-
ER, AND WINDOW CLEANER.
  (II) "PREVAILING WAGE" MEANS THE WAGE DETERMINED BY THE FISCAL OFFICER
TO BE PREVAILING FOR THE VARIOUS CLASSES OF BUILDING  SERVICE  EMPLOYEES
IN THE LOCALITY PURSUANT TO SECTION TWO HUNDRED THIRTY OF THE LABOR LAW.

S. 1890                             4

  (B)  NO  EXEMPTION  UNDER  THIS  SECTION  SHALL  BE  GRANTED  FOR  ANY
CONSTRUCTION, RECONSTRUCTION, ALTERATIONS, OR  IMPROVEMENTS  UNLESS  THE
APPLICANT  AGREES  THAT  ALL  BUILDING SERVICE EMPLOYEES EMPLOYED AT THE
BUILDING, WHETHER EMPLOYED DIRECTLY BY THE APPLICANT OR ITS  SUCCESSORS,
OR  THROUGH A PROPERTY MANAGEMENT COMPANY OR A CONTRACTOR, SHALL RECEIVE
THE APPLICABLE PREVAILING WAGE FOR THE DURATION OF  THE  BUILDING'S  TAX
EXEMPTION.
  9. NO ADDITIONAL EXEMPTIONS SHALL APPLY.
  S 2. This act shall take effect immediately.

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