S T A T E   O F   N E W   Y O R K
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                                  1487--A
     Cal. No. 264
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced by Sens. AVELLA, KLEIN -- read twice and ordered printed, and
   when  printed  to be committed to the Committee on Local Government --
   recommitted to the Committee on Local Government  in  accordance  with
   Senate  Rule  6,  sec.  8  --  reported favorably from said committee,
   ordered to first and  second  report,  ordered  to  a  third  reading,
   amended  and  ordered  reprinted,  retaining its place in the order of
   third reading
 
 AN ACT to amend the administrative code of the city of New York and  the
   real  property tax law, in relation to increasing the average assessed
   value threshold; and to amend the real property tax law,  in  relation
   to  the  eligibility for J-51 tax abatements to reflect cost of living
   adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (ii)  of  paragraph  3  of subdivision d of
 section 11-243 of the administrative code of the city of  New  York,  as
 amended  by  local  law  number  49 of the city of New York for the year
 1993, is amended to read as follows:
   (ii) is owned as a condominium and is occupied  as  the  residence  or
 home  of  three  or  more  families  living independently of each other;
 provided, however, that, in addition to all other conditions  of  eligi-
 bility  for  the benefits of this section, except for multiple dwellings
 in which units have been newly created by substantial rehabilitation  of
 vacant buildings or conversions of non-residential buildings, the avail-
 ability  of  benefits  under  this  section for such multiple dwellings,
 buildings or structures shall  be  conditioned  on  the  following:  (a)
 alterations  or  improvements  to  at least one building-wide system are
 part of the application for benefits, and (b) (i) the assessed valuation
 of such multiple dwelling, building, or structure, including land, shall
 not exceed an average of [thirty] FIFTY thousand  dollars  per  dwelling
 unit at the time of the commencement of the alterations or improvements,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07089-04-8

 S. 1487--A                          2
 
 and  (ii)  during the three years immediately preceding the commencement
 of the alterations or improvements the average per room  sale  price  of
 the  dwelling  units or the stock allocated to such dwelling units shall
 have  been  no  greater than thirty-five percent of the maximum mortgage
 amount for a single family home eligible for  purchase  by  the  Federal
 National Mortgage Association; provided that if less than ten percent of
 the  dwelling units or an amount of stock less than the amount allocable
 to ten percent of such dwelling units was not  transferred  during  such
 preceding  three  year  period, eligibility for benefits shall be condi-
 tioned upon the multiple dwelling,  building,  or  structure  having  an
 assessed  valuation  per dwelling unit of no more than twenty-five thou-
 sand dollars at the time of  the  commencement  of  the  alterations  or
 improvements.  Provided,  further, that such benefits shall be available
 only for alterations or improvements commenced on or after  June  first,
 nineteen hundred eighty-six.
   §  2.  The  opening  paragraph  of  paragraph  (a) of subdivision 1 of
 section 489 of the real property tax law, as amended by  section  19  of
 part A of chapter 20 of the laws of 2015, 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 January first, two thousand
 [nineteen] TWENTY-TWO, 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:
   § 3. The closing paragraph of  subparagraph  6  of  paragraph  (a)  of
 subdivision 1 of section 489 of the real property tax law, as amended by
 section  20  of  part A of chapter 20 of the laws of 2015, is amended to
 read as follows:
   Such conversion, alterations or improvements shall be completed within
 thirty months after the date on which same shall be started except  that
 such  thirty month limitation shall not apply to conversions of residen-
 tial units which are registered with the loft board in  accordance  with
 article  seven-C  of  the multiple dwelling law pursuant to subparagraph
 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 subsidies  from  any
 federal,  state or local governmental agency or instrumentality 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 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 within sixty months  from
 commencement  of  construction. Provided, further, that such conversion,
 alterations or improvements shall in any event  be  completed  prior  to
 June  thirtieth,  two  thousand  [nineteen]  TWENTY-TWO.  Exemption  for
 conversions, alterations or improvements pursuant 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, alter-
 ations or improvements. Exemption for alterations or improvements pursu-
 ant to this subparagraph or subparagraph five of  this  paragraph  shall

 S. 1487--A                          3
 
 continue for a period not to exceed thirty-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 valuation 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  improvements  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 Cranston-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 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 any  city
 and  where alterations and improvements 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.
   § 4. Subparagraph (iv) of paragraph (c) of subdivision 17  of  section
 489 of the real property tax law, as added by chapter 388 of the laws of
 2016, is amended to read as follows:
   (iv)  Notwithstanding  anything  to the contrary contained herein, the
 assessed value limitation shall not at  any  time  exceed  [thirty-five]
 FIFTY thousand dollars.
   § 5. This act shall take effect immediately.