NY State Senate Bill 2017-S6711

Senate Bill S6711

2017-2018 Legislative Session

Relates to the taxation of the transfer of real property by a housing development fund company

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to cities
Jun 21, 2017	recommitted to rules ordered to third reading cal.2226
Jun 14, 2017	referred to rules

Votes

- Jun 21, 2017 - Rules Committee Vote
  S6711
  
  20
  
  Aye
  
  2
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 21, 2017
      
      aye (20)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Hannon
      
      Kennedy
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky
      
      nay (2)
      
      Krueger
      
      Parker
      
      aye wr (3)
      
      Gianaris
      
      Griffo
      
      LaValle

2017-S6711 (ACTIVE) - Details

Current Committee:: Senate Cities
Law Section:: New York City Administrative Code
Laws Affected:: Amd §11-2106, NYC Ad Cd

2017-S6711 (ACTIVE) - Summary

Exempts certain transfers conveying real property by a housing development fund company from transfer taxes.

2017-S6711 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6711

 TITLE OF BILL :  An act to amend the administrative code of the city
of New York, in relation to the taxation of the transfer of real
property

 PURPOSE OR GENERAL IDEA OF BILL :

To clarify the applicability of the exemption from the real property
transfer tax established by Chapter 264 of the Laws of 2016 for
affordable housing development fund company property transferred prior
to the effective date of Chapter 264.

 SUMMARY OF PROVISIONS :

Section one of the bill would amend Section 11-2106 of the
Administrative Code of the City of New York to provide that any deed,
instrument or transaction conveying or transferring real property or
an economic interest therein by or to any housing development fund
company organized pursuant to Article 11 of the Private Housing
Finance Law or to an entity, the controlling interest of which is held
by such a company, made prior to August 19, 2016 shall be exempt
pursuant to paragraph two of subdivision b of section 11-2106 of this
chapter.

Section 2 of the bill to provide that this act shall take effect on

the same date and in the same manner as Chapter 264 of the law of
2016.

 JUSTIFICATION :

The original intent of the transfer tax exemption for affordable
housing company property established by Chapter 264 of the Laws of
2016 was to exempt such property retroactive to January 1, 2010.
After the bill became law in August 2016, the New York City Finance
Department has subsequently told affordable housing developers that
the 2016 amendment does not provide the exemption from the transfer
tax as was agreed upon and intended. For that reason, a clarification
of the 2016 law to make it clear that the transfer tax exemption
applies to affordable housing project deals subject to the 2016 law is
necessary.

 PRIOR LEGISLATIVE HISTORY :

See Chapter 264 of the Laws of 2016.

 FISCAL IMPLICATIONS :

Undetermined

 EFFECTIVE DATE :
This act shall take effect on the same date and in the same manner as
Chapter 264 of the law of 2016.

2017-S6711 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6711
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 14, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation to the taxation of the transfer of real property
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 9 of subdivision b  of  section  11-2106  of  the
 administrative  code of the city of New York, as added by chapter 264 of
 the laws of 2016, is amended to read as follows:
   9. A deed, instrument or transaction conveying  or  transferring  real
 property  or  an economic interest therein by or to any housing develop-
 ment fund company organized pursuant to article eleven  of  the  private
 housing  finance  law or to an entity, the controlling interest of which
 is held by such a company, if at the time of such conveyance  or  trans-
 fer,  such  real  property  is  subject  to, or simultaneously with such
 conveyance or transfer is made subject to, a regulatory  agreement  with
 the  state  of  New  York,  a  municipal corporation or any other public
 corporation created by or pursuant to any law of the state of  New  York
 that:  encumbers  the  real  property for thirty years or more, requires
 mutual consent for revocation or amendment, restricts  more  than  fifty
 percent  of the floor area, other than common areas, to residential real
 property, and restricts at least sixty-six  and  two-thirds  percent  of
 such  residential real property to purchase, lease, license or other use
 by persons of low income and families of low income within  the  meaning
 of  section  two  of the private housing finance law; provided, however,
 that if such  regulatory  agreement  restricts  less  than  one  hundred
 percent  of the floor area, other than common areas, to purchase, lease,
 license or other use by persons of low income and families of low income
 within the meaning of section two of the private  housing  finance  law,
 the tax shall apply to the consideration less the product of the consid-
 eration  and  a  fraction, the numerator of which is the floor area that
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13207-01-7

 S. 6711                             2
 
 such regulatory agreement restricts to purchase, lease, license or other
 use by persons of low income and families of low income within the mean-
 ing of section two of the private housing finance law and the  denomina-
 tor  of  which  is the entire floor area, minus the floor area of common
 areas; provided further, that if such real property is made subject to a
 regulatory agreement that meets the terms of this paragraph  within  two
 years of the conveyance or transfer then the commissioner of finance may
 issue  a  refund  based on the application of this paragraph pursuant to
 the provisions of section 11-2108 of this chapter, treating the transfer
 or conveyance as if such real property were subject to  such  regulatory
 agreement  as  of  the date of such transfer or conveyance, if, notwith-
 standing any other time limitation set forth in section 11-2108 of  this
 chapter,  application  to the commissioner of finance for such refund is
 made within twelve months of  the  effective  date  of  such  regulatory
 agreement.  NOTWITHSTANDING  ANY  PROVISION  OF  THIS  PARAGRAPH  TO THE
 CONTRARY, ANY DEED, INSTRUMENT OR TRANSACTION CONVEYING OR  TRANSFERRING
 REAL  PROPERTY  OR  AN  ECONOMIC  INTEREST  THEREIN BY OR TO ANY HOUSING
 DEVELOPMENT FUND COMPANY ORGANIZED PURSUANT TO  ARTICLE  ELEVEN  OF  THE
 PRIVATE HOUSING FINANCE LAW OR TO AN ENTITY, THE CONTROLLING INTEREST OF
 WHICH  IS  HELD  BY  SUCH  A COMPANY, MADE PRIOR TO AUGUST NINETEEN, TWO
 THOUSAND SIXTEEN SHALL BE EXEMPT  PURSUANT  TO  PARAGRAPH  TWO  OF  THIS
 SUBDIVISION.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on the same  date  and  in  the  same
 manner as chapter 264 of the laws of 2016.

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