senate Bill S5247

2013-2014 Legislative Session

Revives and extends the expiration of provisions authorizing the city of New York to exempt certain new multiple dwellings from real property taxation

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Archive: Last Bill Status - In Committee


  • 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
Jan 08, 2014 referred to cities
returned to senate
died in assembly
Jun 24, 2013 referred to real property taxation
Jun 21, 2013 delivered to assembly
passed senate
Jun 04, 2013 advanced to third reading
Jun 03, 2013 2nd report cal.
May 30, 2013 1st report cal.927
May 15, 2013 referred to cities

Votes

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Co-Sponsors

S5247 - Bill Details

Current Committee:
Senate Cities
Law Section:
Real Property Taxation
Laws Affected:
Amd ยง12, NYC, LL 58 of 2006

S5247 - Bill Texts

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Revives and extends the expiration of provisions authorizing the city of New York to exempt certain new multiple dwellings from real property taxation.

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BILL NUMBER:S5247

TITLE OF BILL: An act to amend local law number 58 of the city of New
York for the year 2006, amending the New York city charter and the
administrative code of the city of New York relating to the
establishment of an affordable housing fund and benefits, in relation
to extending the expiration of exemption of new multiple dwellings
from real property taxation

PURPOSE:

To continue and make retroactive the extension of changes to the 421-a
program made by the New York City Council to the Real Property Tax Law
421-a program in New York City.

SUMMARY OF PROVISIONS:

Section one of this bill amends sections one through eight of Local
Law number 58 of the City of New York of 2006 to continue changes made
to the 421-a program in 2006.

Section two provides a retroactive effective date to December 28,
2010.

JUSTIFICATION:

Section 421-a of the Real Property Tax law has provided tax benefits
for the construction of new residential buildings in the City of New
York since 1971 and are available for up to 25 years depending on the
location of the multiple dwelling. It provides a period of full
exemption followed by a phase out of the exemption to full taxation.
The continuing shortage of affordable housing in the city of New York
necessitates the extension of this essential tax exemption program,
which provides an incentive for the development of affordable units
both in Manhattan and in the outer boroughs. The proposed legislation
would ensure that the 421-a program continues to fulfill this mission.

Local Law No. 58 of 2006, which became effective on December 28, 2007,
expanded the Geographic Exclusion Area, required on-site affordable
housing, created an Affordable Housing Trust Fund, eliminated 3-unit
buildings unless constructed with substantial government assistance
and otherwise maintained eligibility for 4 and 5 unit buildings in the
421-a tax incentive program, and required that housing development in
areas covered by the Neighborhood Preservation Program (NPP) and those
areas eligible for mortgage insurance from Real Estate Mortgage
Insurance Corporation (REMIC) only receive the extended tax benefit if
on site affordable housing was included. After the council enacted
Local Law No. 58 of 2006, the State Legislature enacted further
reforms to the 421-a program through chapters 618, 619, and 620 of
2007. Further reforms were adopted when the Governor signed Chapter 15
of 2008. On June 1, 2010 the Mayor signed Local Law No. 58 of 2006.
Finally the State Legislature enacted the Rent Act of 2011 and Chapter
4 of 2013, both of which amended the 421-a provisions contained in
both local and state law. The subsequent legislative activity since
Local Law No. 58 of 2006 assumed the continued effectiveness of the
provisions contained


therein. The proposed law corrects the unintended sunset of these
provisions by retroactively reinstating them as of December 28, 2010.
Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  5247

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 15, 2013
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend local law number 58 of the city of New York for the year
  2006, amending the New York city charter and the  administrative  code
  of the city of New York relating to the establishment of an affordable
  housing  fund and benefits, in relation to extending the expiration of
  exemption of new multiple dwellings from real property taxation

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

  Section  1.  Section 12 of local law number 58 of the city of New York
for the year 2006, amending the New York city charter and  the  adminis-
trative code of the city of New York relating to the establishment of an
affordable housing fund and benefits, is amended to read as follows:
  S  12.  This  local  law  shall  take effect one year after enactment,
provided that the commissioner of housing preservation  and  development
shall take such actions as are necessary for its implementation prior to
such  effective  date  [and  further provided, that sections one through
eight of this local law shall expire four years after their enactment].
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after December 28, 2010.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10674-02-3

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