Senate Bill S5702

                                
 
BILL NUMBER: S5702

SPONSOR: LIU
 
TITLE OF BILL:  An act to amend the administrative code of the city of
New York, in relation to establishing a property tax credit for class 2
cooperative and condominium buildings that are designated safe after a
facade safety program inspection

 
PURPOSE OR GENERAL IDEA OF BILL::

To offer a property tax credit for class 2 co-op and condo buildings
that are designated safe after a facade inspection safety program
inspection.

 
SUMMARY OF SPECIFIC PROVISIONS::

Section 1. Adds a new section 11-242.1 to the administrative code of the
city of New York to provide for an exemption for buildings designated
safe by the facade inspection safety program (FISP).

Subdivision (a) provides that class two cooperative and/or condominium
              

buildings that have been designated safe after a FISP are eligible for
the exemption.

Subdivision (b) provides that the taxes of the eligible property shall
be abated and reduced by an amount equal to the costs of the FISP
inspection.

Subdivision (c) provides that the abatements shall be reevaluated every
five years after such inspection is performed, pursuant to Title 28,
Article 302, Chapter 3 of the administrative code.

Section 2. Provides the effective date.

 
JUSTIFICATION::

Local Law 11 of 1998 requires all buildings in New York City that are
greater than six stories to have a Qualified Exterior Wall Inspector
("QEWI") inspect all exterior walls and appurtenances of the building.
This inspection process, also known as the Fa§ ade Inspection and Safety
Program ("FISP"), covers all of the exterior facades, including balco-
nies, fire escapes, parapets, window casings, and railings of a build-
ing, and must be conducted every five years, regardless of the
building's diligence in maintaining the exterior.

The results of a FISP inspection are deemed either: 1) Safe - which
indicates that the facade has no problems and is in good condition; 2)
Safe With a Repair and Maintenance Program - which indicates that the
facade is safe, but requires repairs or maintenance; or 3) Unsafe -which
indicates that the facade has problems or defects that could pose a
threat to public safety.  Because the inspections require construction
of scaffolding or observation platform, the services of QEWI's who must
be licensed architects or engineers, and the drafting of a detailed
technical report, the inspections can cost thousands of dollars or more.
While the inspections are vital to the safety of residents and neigh-
bors, the costs of these inspections in class 2 cooperative and condo-
minium buildings are generally passed on directly to the homeowners
through increased maintenance fees or special assessments. These home-
owners, whose facades are deemed Safe after the FISP inspection, should
not have to bear the burden of the costly inspection process. As such, a
tax abatement program to offset the costs of these inspections would be
beneficial to the co-ops and condos subject to inspection under the
program.

 
PRIOR LEGISLATIVE HISTORY::

 
FISCAL IMPLICATIONS::

None to State.

 
EFFECTIVE DATE::

This act shall take effect immediately.