S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5598
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 13, 2019
                                ___________
 
 Introduced  by  M.  of  A.  MANKTELOW  -- Multi-Sponsored by -- M. of A.
   HAWLEY, McDONOUGH -- 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:
   §  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.
   § 2. This act shall take effect immediately.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08942-01-9