BILL NUMBER:S5118

TITLE OF BILL:  An act in relation to tax exemptions for conversions
to multiple dwellings to eliminate fire and health hazards

PURPOSE:

This bill would permit a commercial building converting to a multiple
dwelling located in the county of Richmond to access J-51 benefits to
enable the completion of this partially completed housing project.

SUMMARY OF PROVISIONS:

This bill specifically identifies a project on a lot numbered 275 of
Richmond block numbered 1 to make it eligible to receive J-51 benefits
for conversion of a commercial building to a multiple dwelling.

JUSTIFICATION:

The conversion of a 1908 factory storage building to a multiple
dwelling was commenced pursuant to a work permit issued on July 16,
2004. The building is currently in a state of partial completion.
Construction was ceased because of the financial crisis and a
subsequent foreclosure proceeding. At such time, this building was
eligible for J-51 benefits. The building was bought out of foreclosure
by the current owner. To complete this unfinished project, which
              

constitutes a significant community eyesore, this bill is required to
re-qualify the owner for J-51 benefits. The owner acquired this
project out of foreclosure on the understanding that the 1-51 benefits
would continue to be available. The J-51 program lapsed and the new
program enacted earlier this session would not include a conversion
without substantial governmental assistance. The J-51 benefits would
make the converted units cleated by this project available to the
target market on Staten Island.

This project was prevented by the onset and continuation of the
financial crisis and the subsequent mortgage foreclosure from
accessing the benefits from J-51. It was unable to be completed within
the 36 month limit as required under RPTL § 489(a)(6), which this bill
is intended to cure. To allow a partially finished project to continue
to remain uncompleted when additional housing opportunities and tax
revenues are available is counterproductive.  This bill would enable
this project to achieve completion and maintain a level of
affordability consistent with Staten Island residents.

CURRENT LAW:

J-51 benefits for conversions are only available where there is
substantial governmental assistance and the application is made within
four years after commencement of construction.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:


None to the State.

EFFECTIVE DATE:

Immediately.