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

                                  7195

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             April 28, 2015
                               ___________

Introduced  by  M. of A. OAKS, KOLB, BARCLAY, HAWLEY, MONTESANO, WALTER,
  FINCH -- Multi-Sponsored by -- M. of A. McDONOUGH,  SALADINO  --  read
  once and referred to the Committee on Real Property Taxation

AN ACT to amend the real property tax law, in relation to the assessment
  of residential real property

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

  Section 1. Section 581-a of the real property tax  law,  as  added  by
chapter 714 of the laws of 2005, is amended to read as follows:
  S  581-a. Assessment of residential real property. Notwithstanding any
other provision of law, the assessed valuation of real property used for
residential rental purposes where at least twenty percent of  the  resi-
dential  units  are  subject  to  an  agreement with a municipality, the
state, the federal government,  or  an  instrumentality  thereof,  which
agreement  restricts  occupancy of those units to tenants who qualify in
accordance with an income test, [shall]  MAY  be  determined  using  the
income  approach  as  applied  to the actual net operating income, after
deducting for reserves required  by  any  federal,  state  or  municipal
programs.  For the purposes of this section "net operating income" shall
mean the actual or anticipated net income that remains after all operat-
ing expenses are deducted from effective gross income, but before  mort-
gage debt service and book depreciation are deducted. The assessed valu-
ation of real property used for such residential rental purposes [shall]
MAY  be  determined  using the actual net operating income, and, IF SUCH
OPTION IS EXERCISED, shall  not  include  federal,  state  or  municipal
income  tax  credits,  subsidized mortgage financing, or project grants,
where such subsidies are used to offset the project development cost  in
order  to  provide  for lower initial rents as determined by regulations
promulgated by the division of housing and community renewal.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05921-01-5