S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3878
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2017
                                ___________
 
 Introduced  by  Sens. RANZENHOFER, AKSHAR, CROCI, SERINO, SEWARD -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Local Government
 
 AN  ACT to amend the real property tax law, in relation to authorizing a
   residential redevelopment inhibited property exemption

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  485-r  of the real property tax law, as added by
 chapter 406 of the laws of 2015 and paragraph (f) of  subdivision  1  as
 amended  by  chapter  28  of  the  laws  of  2016, is amended to read as
 follows:
   § 485-r.  Residential  redevelopment  inhibited  property  exemption[;
 certain  cities].  1. As used in this section, the following terms shall
 have the following meanings:
   (a) "Redevelopment inhibited property" shall mean a residential  prop-
 erty  that has been neglected or abandoned because of the local economic
 conditions and/or conditions on the property that inhibit such  property
 from  being  redeveloped  by the private sector. Redevelopment inhibited
 property shall not include land that is undeveloped.
   (b) "Gap financing costs" shall mean the total cost of the  property's
 redevelopment  as approved by the [city] MUNICIPALITY minus the increase
 in the full valuation of the property upon completion of the  redevelop-
 ment.
   (c) "Base assessment" shall mean the assessed value of the property on
 the day the [city] MUNICIPALITY designates the property as redevelopment
 inhibited.
   (d)  "Increased assessment" shall mean the assessed value of the prop-
 erty as determined by the assessor upon completion of the redevelopment.
   (e) "Incremental increase in annual property  taxes"  shall  mean  the
 taxes  based  on  the  increased assessment minus the taxes based on the
 base assessment.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07927-01-7

 S. 3878                             2
 
   (f) ["City" shall mean a city with  a  population  of  not  less  than
 fifteen  thousand  two  hundred fifty and not more than fifteen thousand
 five hundred as determined by  the  latest  federal  decennial  census.]
 "MUNICIPALITY" MEANS ANY CITY, TOWN OR VILLAGE.
   2.  A [city] MUNICIPALITY may, by local law, provide for the exemption
 of real property from taxation as provided in this  section.  Subsequent
 to the adoption of such local law, the county in which such [city] MUNI-
 CIPALITY is located may after a public hearing and by local law, and any
 school  district, all or part of which is located in such [city] MUNICI-
 PALITY, may, by resolution, exempt such property from  its  taxation  in
 the  same  manner  and to the same extent as the [city] MUNICIPALITY has
 done.
   3. A [city] MUNICIPALITY  shall  designate  any  property  within  the
 [city]  MUNICIPALITY'S  boundaries as a redevelopment inhibited property
 if one or more of the following are met:
   (a) the [city] MUNICIPALITY has acquired title to the property  pursu-
 ant  to  article nineteen-A of the real property actions and proceedings
 law; or
   (b) the property has been continuously vacant for a period of at least
 three years; or
   (c) the [city] MUNICIPALITY has acquired title  to  the  property  via
 foreclosure for unpaid taxes pursuant to article eleven of this chapter;
 or
   (d)  the  property  has  outstanding  zoning, housing, or uniform code
 violations and the cost of remedying the violations exceeds the  proper-
 ty's value.
   4.  (a)  Upon  the adoption of such local law, redevelopment inhibited
 property shall be exempt from taxation and special ad valorem levies  to
 the  extent  of any increase in value attributable to demolition, alter-
 ation, rehabilitation, or remediation pursuant to the following require-
 ments:
   (i) the demolition, alterations,  rehabilitation,  and/or  remediation
 shall  be  permitted by the [city's] MUNICIPALITY'S bureau of inspection
 such that building or  plumbing  permits  issued  and  said  demolition,
 alterations,  rehabilitation,  and/or  remediation  shall  have  met all
 necessary approvals per the  applicable  New  York  state  uniform  fire
 prevention and building code, the [city's] MUNICIPALITY'S municipal code
 and  the  [city's]  MUNICIPALITY'S bureau of inspection upon completion;
 and
   (ii) the property for which  the  exemption  is  sought  shall  be  an
 owner-occupied one-family residence; and
   (iii)  the  owner of such property shall file annually an affidavit of
 residency with the assessor of the [city] MUNICIPALITY on or before  the
 appropriate  taxable status date of such [city] MUNICIPALITY, confirming
 continued owner-occupancy of the property; and
   (iv) the redevelopment inhibited property is exempt from taxation  and
 special ad valorem levies attributable to the increased assessment minus
 the  taxes and special ad valorem levies imposed on the base assessment.
 Such exemption shall not apply to special assessments.
   (b) In the event the property granted an exemption  pursuant  to  this
 section ceases to be owner-occupied and/or the affidavit of residency is
 not  filed  annually  for  the  approved exemption period, the exemption
 granted pursuant to this section shall cease.
   (c) In the event the property granted an exemption  pursuant  to  this
 section ceases to be a one-family dwelling, the exemption granted pursu-
 ant to this section shall cease.

 S. 3878                             3
 
   (d) In the event the owner of the property is convicted of a violation
 or  misdemeanor  pursuant  to New York state uniform fire prevention and
 building  code  or  the  [city's]  MUNICIPALITY'S  municipal  code,  the
 exemption granted pursuant to this section shall cease.
   5.  (a)  Such  redevelopment  inhibited property shall be exempt for a
 period equal to the gap  financing  costs  divided  by  the  incremental
 increase in annual property taxes resulting from such redevelopment. The
 exemption  period  shall  be  rounded up to the nearest whole number and
 shall not exceed twenty-five years.
   (b) The extent of such exemption shall decrease the last  eight  years
 of  the  exemption period by twelve and one-half percent of the increase
 in assessment due to the redevelopment equaling a zero percent exemption
 on the final year of the exemption period.
   6. (a) Such exemption shall be granted only upon  application  by  the
 owner of such building for the residential redevelopment inhibited prop-
 erty  exemption,  on a form prescribed by the [city] MUNICIPALITY.  Such
 application must be filed with the assessor of the  [city]  MUNICIPALITY
 on  or before the appropriate taxable status date of such [city] MUNICI-
 PALITY.  The application must be filed with the assessor of  the  [city]
 MUNICIPALITY  within three years from the date of completing the demoli-
 tion, alterations, rehabilitation, and/or remediation.
   (b) The owner filing for such exemption shall not be  required  to  be
 the  owner responsible for completing the demolition, alterations, reha-
 bilitation, and/or remediation.
   (c) If the assessor is satisfied that the applicant is entitled to  an
 exemption pursuant to this section, he or she shall approve the applica-
 tion and such real property shall thereafter be exempt from taxation and
 special ad valorem levies by the [city] MUNICIPALITY commencing with the
 assessment  roll  prepared  after the taxable status date referred to in
 this subdivision. The assessed value of any exemption  granted  pursuant
 to  this  section shall be entered by the assessor of the [city] MUNICI-
 PALITY on the assessment roll with the taxable property, with the amount
 of the exemption shown in a separate column.
   (d) Once granted, the  residential  redevelopment  inhibited  property
 exemption  runs  with the land for the exemption period pursuant to this
 section.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.