S T A T E O F N E W Y O R K
________________________________________________________________________
8849
2019-2020 Regular Sessions
I N A S S E M B L Y
December 18, 2019
___________
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the
Committee on Real Property Taxation
AN ACT to repeal section 421-a of the real property tax law, relating to
the affordable New York housing program; to amend the real property
tax law, the administrative code of the city of New York, and the
private housing finance law, in relation to making necessary technical
and conforming changes; and to repeal certain sections of the adminis-
trative code of the city of New York relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 421-a of the real property tax law is REPEALED.
§ 2. Section 11-245 of the administrative code of the city of New York
is REPEALED.
§ 3. Section 11-245.1 of the administrative code of the city of New
York is REPEALED.
§ 4. Section 11-245.1-a of the administrative code of the city of New
York is REPEALED.
§ 5. Section 11-245.1-b of the administrative code of the city of New
York is REPEALED.
§ 6. Paragraph 11 of subdivision a of section 6-130 of the administra-
tive code of the city of New York, as added by local law number 27 of
the city of New York for the year 2012, is amended to read as follows:
(11) "Lease" means any agreement whereby a contracting agency
contracts for, or leases or rents, commercial office space or commercial
office facilities of 10,000 square feet or more from a non-governmental
entity provided the City, whether through a single agreement or multiple
agreements, leases or rents no less than fifty-one percent of the total
square footage of the building to which the lease applies, or if such
space or such facility is entirely located within the geographic area in
the borough of Staten Island[, or in an area not defined as an exclusion
area pursuant to section 421-a of the real property tax law] on the date
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14411-01-9
A. 8849 2
of enactment of the local law that added this section, then no less than
eighty percent of the total square footage of the building to which the
lease applies. Such agreements shall not include agreements between
not-for-profit organizations and a contracting agency.
§ 7. Subdivision 1 of section 11-239 of the administrative code of the
city of New York, as amended by local law number 40 of the city of New
York for the year 2007, is amended to read as follows:
1. For fiscal years beginning the first of July, two thousand three
and ending the thirtieth of June, two thousand nine, a rebate in the
amount of the lesser of four hundred dollars or the annual tax liability
imposed on the property shall be paid to an owner or tenant-stockholder
who, as of the date the application provided for in subdivision four of
this section is due, owns a one, two or three family residence or a
dwelling unit in residential property held in the condominium or cooper-
ative form of ownership that is the owner or tenant-stockholder's prima-
ry residence and meets all other eligibility requirements of this
section. If, with respect to the fiscal year beginning on the first of
July, two thousand eight and ending on the thirtieth of June, two thou-
sand nine, an increase in average real property tax rates would other-
wise be necessary in the resolution of the city council fixing real
property tax rates for such fiscal year pursuant to the charter, then
the rebate to be paid for such fiscal year shall be reduced or elimi-
nated as follows: where the sum to be raised by such increase is less
than seven hundred fifty million dollars, then such rebate shall be
reduced by fifty cents for each dollar of increase, and where the sum to
be raised by such increase is seven hundred fifty million dollars or
more, then such rebate shall be eliminated. Notwithstanding anything to
the contrary in sections [four hundred twenty-one-a,] four hundred twen-
ty-one-b or four hundred twenty-one-g of the real property tax law, an
owner or tenant-stockholder whose property is receiving benefits pursu-
ant to such sections shall not be prohibited from receiving a rebate
pursuant to this section if such owner or tenant-stockholder is other-
wise eligible to receive such rebate. Tenant-stockholders of dwelling
units in a cooperative apartment corporation incorporated as a mutual
company pursuant to article two, four, five or eleven of the private
housing finance law shall not be entitled to the rebate authorized by
this section. Such rebate shall be paid by the commissioner of finance
to eligible owners or tenant-stockholders in accordance with rules
promulgated by the commissioner of finance.
§ 8. Subdivision h of section 26-901 of the administrative code of the
city of New York, as added by local law number 44 of the city of New
York for the year 2012, is amended to read as follows:
h. "Housing development project" means construction, rehabilitation or
alteration of any residential building, residential facility or residen-
tial structure by a developer (1) which creates or preserves at least
one dwelling unit; (2) which is funded in whole or in part by city
financial assistance other than non-discretionary tax abatements or
benefits approved or administered in accordance with [sections 421-a or]
SECTION 489 of the New York state real property tax law or other similar
programs and (3) where the developer of such project was not selected
more than five years prior to the effective date of this chapter. The
term "housing development project" shall not include emergency repairs
performed by or on behalf of the department pursuant to section 27-2125
of this code, work performed by or on behalf of the department pursuant
to section 27-2153 of this code, demolition work performed by or on
behalf of the department pursuant to articles two hundred fifteen or two
A. 8849 3
hundred sixteen of chapter two of title twenty-eight of this code, or
work funded by the department pursuant to article seven-a of the New
York state real property actions and proceedings law.
§ 9. Subdivision 18 of section 654-d of the private housing finance
law, as amended by chapter 703 of the laws of 1992, is amended to read
as follows:
18. Rentals. Notwithstanding the provisions of, or any regulation
promulgated pursuant to, the emergency housing rent control law, the
local emergency housing rent control act or local law enacted pursuant
thereto, all dwelling units in a multiple dwelling the rehabilitation of
which commenced after July first, nineteen hundred seventy-seven and
which is financed by a mortgage loan insured by the subsidiary corpo-
ration (including, but not limited to, mortgage loans insured pursuant
to mortgage insurance contracts and housing insurance contracts), except
for dwelling units occupied by reason of ownership of stock in a cooper-
ative and except for dwelling units that constitute condominiums, shall
be subject to the rent stabilization law of nineteen hundred sixty-nine,
beginning immediately after initial rents, as established under applica-
ble provisions of this chapter, [section four hundred twenty-one-a of
the real property tax law,] section four hundred eighty-nine of the real
property tax law and/or subparagraph (m) of paragraph one of subdivision
g of section 26-405 of the administrative code of the city of New York
for such dwelling units to become effective on the basis of such reha-
bilitation, provided that any occupant in possession of a dwelling unit
that first becomes subject to the rent stabilization law of nineteen
hundred sixty-nine pursuant to this section shall be offered a two-year
lease notwithstanding any contrary provisions of, or regulations adopted
pursuant to, such rent stabilization law, at the initial rent estab-
lished for such dwelling unit and provided further that such dwelling
units, other than those dwelling units, the initial rents of which are
established under subparagraph (m) of paragraph one of subdivision g of
section 26-405 of the administrative code of the city of New York, shall
remain subject to the rent stabilization law in accordance with the
provisions of this chapter[, section four hundred twenty-one-a of the
real property tax law] and/or section four hundred eighty-nine of the
real property tax law as the case may be. Except to the extent to which
dwelling units, which are controlled under other provisions of law,
become subject to the rent stabilization law of nineteen hundred sixty-
nine pursuant to the preceding sentence, no dwelling unit shall become
subject to the rent stabilization law solely by reason of insurance of a
mortgage loan by the subsidiary corporation.
§ 10. Subdivision 6 of section 421-m of the real property tax law, as
added by section 43 of part B of chapter 97 of the laws of 2011, is
amended to read as follows:
6. The exemption authorized by this section shall not be available in
a jurisdiction to which the provisions of section [four hundred twenty-
one-a or] four hundred twenty-one-c of this article are applicable.
§ 11. Subdivision 1 of section 467-e of the real property tax law, as
amended by chapter 483 of the laws of 2007, is amended to read as
follows:
1. Generally. Notwithstanding any provision of any general, special or
local law to the contrary, any city having a population of one million
or more is hereby authorized and empowered to adopt and amend local laws
in accordance with this section to grant a rebate of real property taxes
for fiscal years beginning on the first of July, two thousand three and
ending on the thirtieth of June, two thousand nine in the amount of the
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lesser of four hundred dollars or the annual tax liability imposed on
the property. No such local law may be adopted unless, as originally
adopted, it authorizes such rebate to be granted in accordance with this
section for three consecutive fiscal years beginning with the fiscal
year beginning on the first of July, two thousand three. No such rebate
shall be granted by local law for any fiscal year beginning on or after
the first of July, two thousand nine, unless the council of such city,
in fixing the annual tax rates for any such fiscal year, shall have
uniformly reduced such rates for all classes of property in order to
produce real property tax relief among such classes of property in an
amount not less than, in the aggregate, the aggregate amount of rebate
paid in such fiscal year. No such local law implementing the provisions
of this section, as amended by [the] chapter FOUR HUNDRED EIGHTY-THREE
of the laws of two thousand seven [which added this sentence], may be
adopted unless, as originally adopted, such local law authorizes such
rebate to be granted in accordance with this section for three consec-
utive fiscal years beginning with the fiscal year beginning on the first
of July, two thousand six. Any rebate authorized by local law in accord-
ance with this section shall be paid in the fiscal year following the
fiscal year for which the rebate is granted. If, with respect to the
fiscal year of such city beginning on the first of July, two thousand
eight and ending on the thirtieth of June, two thousand nine, an
increase in average real property tax rates would otherwise be necessary
in the resolution of such city council fixing real property tax rates
for such fiscal year pursuant to the charter of such city, then the
rebate to be paid for such fiscal year shall be reduced or eliminated as
follows: where the sum to be raised by such increase is less than seven
hundred fifty million dollars, then such rebate shall be reduced by
fifty cents for each dollar of increase, and where the sum to be raised
by such increase is seven hundred fifty million dollars or more, then
such rebate shall be eliminated. The determination of the reduction or
elimination of such rebate shall be set forth in such resolution after
consultation with the department of finance of such city and shall take
effect upon the final adoption of such resolution. Such rebate shall be
paid to an owner or tenant-stockholder who, as of the date the applica-
tion provided for in subdivision four of this section is due, owns a
one, two or three family residence or a dwelling unit in residential
property held in the condominium or cooperative form of ownership that
is the owner or tenant-stockholder's primary residence and meets all
other eligibility requirements of this section. Notwithstanding
anything to the contrary in sections [four hundred twenty-one-a,] four
hundred twenty-one-b or four hundred twenty-one-g of this title, an
owner or tenant-stockholder whose property is receiving benefits pursu-
ant to such sections shall not be prohibited from receiving a rebate
pursuant to this section if such owner or tenant-stockholder is other-
wise eligible to receive such rebate. Tenant-stockholders of dwelling
units in a cooperative apartment corporation incorporated as a mutual
company pursuant to article two, four, five or eleven of the private
housing finance law shall not be entitled to the rebate authorized by
this section. Such rebate shall be paid by the commissioner of finance
to eligible owners or tenant-stockholders in accordance with rules
promulgated by the commissioner of finance.
§ 12. Paragraph (b) of subdivision 1-a of section 489 of the real
property tax law, as amended by chapter 450 of the laws of 2003, is
amended to read as follows:
A. 8849 5
(b) for tax lots in the city of New York now existing or hereafter
created within the following area in the borough of Manhattan, such
conversions, alterations or improvements are aided by a grant, loan or
subsidy from any federal, state or local agency or instrumentality:
beginning at the intersection of the United States pierhead line in the
Hudson river and the center line of Chambers street extended, thence
easterly to the center line of Chambers street and continuing along the
center line of Chambers street to the center line of Centre street,
thence southerly along the center line of Centre street to the center
line of the Brooklyn Bridge to the intersection of the Brooklyn Bridge
and the United States pierhead line in the East river, thence northerly
along the United States pierhead line in the East river to the inter-
section of the United States pierhead line in the East river and the
center line of One Hundred Tenth street extended, thence westerly to the
center line of One Hundred Tenth street and continuing along the center
line of One Hundred Tenth street to its westerly terminus, thence
westerly to the intersection of the center line of One Hundred Tenth
street extended and the United States pierhead line in the Hudson river,
thence southerly along the United States pierhead line in the Hudson
river to the point of beginning. For purposes of this subdivision,
"floor area" shall [have the same meaning as in paragraph b of subdivi-
sion one of section four hundred twenty-one-a of this title] MEAN THE
HORIZONTAL AREAS OF THE SEVERAL FLOORS OR ANY PORTION THEREOF OF A
DWELLING OR DWELLINGS AND ACCESSORY STRUCTURES ON A LOT MEASURED FROM
THE EXTERIOR FACES OF EXTERIOR WALLS OR FROM THE CENTER LINE OF PARTY
WALLS. Nothing in this subdivision shall be construed to provide bene-
fits pursuant to subdivision two of this section for the costs attribut-
able to the increased cubic content in any such building or structure.
§ 13. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.