NY State Senate Bill 2021-S9455

Senate Bill S9455

2021-2022 Legislative Session

Relates to freezing eligible homeowners' and renters' ground rent in the Battery Park project area

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 30, 2022	referred to corporations, authorities and commissions

2021-S9455 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §1974-b, Pub Auth L
Versions Introduced in 2023-2024 Legislative Session:: S2963

2021-S9455 (ACTIVE) - Summary

Relates to freezing eligible homeowners' and renters' ground rent in the Battery Park project area; provides for a rebate program; provides for a process for application and certification.

2021-S9455 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9455

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to freezing
eligible homeowners' and renters' ground rent in the Battery Park
project area

 
PURPOSE:

This bill is intended to promote housing affordability and stability for
income-eligible homeowners and renters whose primary residences are
located in the Battery Park City neighborhood in Lower Manhattan.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends section 1974-b of the public authorities
law to add a new subdivision 3.

Paragraph a of the new subdivision defines five key terms. "Eligible
homeowner" is defined as an owner of a residence in BPC who occupies

their home as their primary residence and whose annual household income
does not exceed 150% of the area median income, adjusted for household
size. "Eligible renter" is defined as a renter in BPC who occupies a
rental unit that is designated a quasi-rent stabilized unit or has a
restriction on annual rent increases under a regulatory agreement
between the landlord and the BPCA, and whose annual household income
does not exceed 150% of the area median income, adjusted for household
size. "Rebate base year" is defined as 2021 or the year preceding the
year in which a homeowner or renter first becomes income eligible.
"Homeowner's ground rent" is defined as the portion of a homeowner's
building's ground rent attributable to the homeowner's occupancy of
their primary residence. "Renter's ground rent" is defined as the
portion of a renter's rent payment attributable to the ground rent for
the occupancy of their unit as their primary residence.

Paragraph b of the new subdivision would direct the BPCA to offer to
each eligible homeowner and renter a rebate of the portion of their
ground rent equal to the difference between the amount of the homeown-
er's or renter's ground rent due in the base year and the amount due and
paid in the year for which the eligible homeowner or renter applies for
the rebate. This paragraphs also directs the BPCA to permit eligible
homeowners and renters to certify that they expect to meet eligibility
criteria in the next succeeding year.

Paragraph c of the new subdivision states that the BPCA shall promulgate
procedures for the rebate program within 180 days of the effective date
of the subdivision.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

Located in Lower Manhattan on the West Side, Battery Park City (BPC) is
a dense, mixed residential and commercial neighborhood. Over time, rapid
escalation of property values in the area have made it increasingly
difficult for many residents to continue to afford to live there, espe-
cially low-, moderate-, and middle-income residents who first moved to
BPC when the neighborhood was affordable and who helped build BPC into
the community it is today. This legislation will promote the housing
stability and affordability for income-eligible primary residents who
own or rent their home in BPC.

Like most property leases, ground rent in Battery Park City increases
over time. The initial ground lease agreements included provisions that
reset a building's ground rent to the BPCA at a new amount that is
calculated at 6% of the property's fair market value at the time of the
reset. Under the provisions of the initial agreements, the reset would
happen every 15 years. While there are ongoing efforts to renegotiate
the provisions of various buildings' ground leases, there is a need to
ensure that low-, moderate, and middle-income homeowners and renters
have effective protections from unaffordable increases that might
continue to be generally applicable to their buildings. To ensure that
long-time BPC residents who have contributed to the flourishing of the
neighborhood can afford to remain in their homes, this bill would freeze
the ground rent obligations for primary resident homeowners who have an
annual income at or below 150% of area median income. For renters, this
bill would freeze the portion of a renter's rent payment attributable to
ground rent for primary resident renters who live in designated quasi-
rent stabilized units or have restrictions on annual rent increases
under a regulatory agreement. Any amount above the frozen ground rent
would be credited back to qualifying homeowners and renters via a
rebate.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S9455 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9455
 
                             I N  S E N A T E
 
                               May 30, 2022
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend  the  public authorities law, in relation to freezing
   eligible homeowners' and renters' ground  rent  in  the  Battery  Park
   project area
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1974-b of the public authorities law is amended  by
 adding a new subdivision 3 to read as follows:
   3.  (A)  FOR  PURPOSES  OF  THIS SUBDIVISION: (I) "ELIGIBLE HOMEOWNER"
 SHALL MEAN AN OWNER OF A RESIDENCE LOCATED IN THE BATTERY  PARK  PROJECT
 AREA  WHO  OCCUPIES  SUCH RESIDENCE AS THE HOMEOWNER'S PRIMARY RESIDENCE
 AND WHOSE ANNUAL HOUSEHOLD INCOME DOES  NOT  EXCEED  ONE  HUNDRED  FIFTY
 PERCENT  OF  THE AREA MEDIAN INCOME DEFINED AND CALCULATED BY THE UNITED
 STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE NEW YORK CITY
 REGION, ADJUSTED FOR HOUSEHOLD SIZE; (II) "ELIGIBLE RENTER" SHALL MEAN A
 PERSON WHOSE PRIMARY RESIDENCE IS LOCATED IN THE  BATTERY  PARK  PROJECT
 AREA  AND IS DESIGNATED A QUASI-RENT STABILIZED UNIT OR HAS RESTRICTIONS
 ON ANNUAL RENT INCREASES PURSUANT TO A REGULATORY AGREEMENT BETWEEN  THE
 AUTHORITY  AND  THE LANDLORD, AND WHOSE ANNUAL HOUSEHOLD INCOME DOES NOT
 EXCEED ONE HUNDRED FIFTY PERCENT OF THE AREA MEDIAN INCOME  DEFINED  AND
 CALCULATED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOP-
 MENT  FOR  THE NEW YORK CITY REGION; (III) "REBATE BASE YEAR" SHALL MEAN
 THE YEAR TWO THOUSAND TWENTY-ONE FOR ANY HOMEOWNER WHO  IS  AN  ELIGIBLE
 HOMEOWNER OR ANY RENTER WHO IS AN ELIGIBLE RENTER BASED UPON THEIR ANNU-
 AL  HOUSEHOLD  INCOME  FOR THE YEAR TWO THOUSAND TWENTY-TWO, OR THE YEAR
 PRECEDING THE YEAR IN WHICH A HOMEOWNER FIRST BECOMES AN ELIGIBLE  HOME-
 OWNER  OR  A  RENTER  FIRST  BECOMES  AN ELIGIBLE RENTER; IN THE EVENT A
 PREVIOUSLY ELIGIBLE HOMEOWNER OR A PREVIOUSLY  ELIGIBLE  RENTER  BECOMES
 INELIGIBLE  BECAUSE THE HOMEOWNER'S OR RENTER'S HOUSEHOLD INCOME EXCEEDS
 ONE HUNDRED FIFTY PERCENT OF THE AREA MEDIAN INCOME FOR TWO  CONSECUTIVE
 YEARS,  THE REBATE BASE YEAR SHALL BE RESET TO BE THE YEAR PRECEDING ANY
 SUBSEQUENT YEAR IN WHICH THE HOMEOWNER OR RENTER AGAIN BECOMES ELIGIBLE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16019-01-2
 S. 9455                             2

 (IV) "HOMEOWNER'S GROUND RENT" SHALL MEAN THE PORTION OF  A  HOMEOWNER'S
 BUILDING'S  GROUND RENT ATTRIBUTABLE TO THE HOMEOWNER'S OCCUPANCY OF THE
 HOMEOWNER'S PRIMARY RESIDENCE AND PAID BY THE HOMEOWNER TO THE AUTHORITY
 UNDER  THE BUILDING'S RESIDENTIAL SUBLEASE TO THE LEASE BETWEEN THE CITY
 OF NEW YORK AND THE  AUTHORITY,  DATED  NOVEMBER  TWENTY-FOUR,  NINETEEN
 HUNDRED  SIXTY-NINE  AND  RECORDED DECEMBER TWENTY-SIX, NINETEEN HUNDRED
 SIXTY-NINE ON PAGE ONE OF REEL ONE HUNDRED SIXTY-ONE, AND ANY SUBSEQUENT
 AMENDMENTS; AND (V) "RENTER'S GROUND RENT" SHALL MEAN THE PORTION  OF  A
 RENTER'S  RENT  PAYMENT  ATTRIBUTABLE  TO  THE  GROUND RENT BASED ON THE
 RENTER'S OCCUPANCY OF HIS OR HER PRIMARY RESIDENCE AND PAID BY THE LAND-
 LORD TO THE AUTHORITY UNDER THE BUILDING'S RESIDENTIAL SUBLEASE  TO  THE
 LEASE  BETWEEN  THE  CITY  OF NEW YORK AND THE AUTHORITY, DATED NOVEMBER
 TWENTY-FOUR, NINETEEN HUNDRED SIXTY-NINE AND RECORDED  DECEMBER  TWENTY-
 SIX,  NINETEEN HUNDRED SIXTY-NINE ON PAGE ONE OF REEL ONE HUNDRED SIXTY-
 ONE, AND ANY SUBSEQUENT AMENDMENTS.
   (B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE AUTHORI-
 TY SHALL OFFER TO EACH ELIGIBLE HOMEOWNER AND ELIGIBLE RENTER  A  REBATE
 OF  THE PORTION OF SUCH HOMEOWNER'S OR RENTER'S GROUND RENT EQUAL TO THE
 DIFFERENCE BETWEEN THE AMOUNT OF SUCH  HOMEOWNER'S  OR  RENTER'S  GROUND
 RENT  DUE  IN  THE REBATE BASE YEAR AND THE AMOUNT OF THE HOMEOWNER'S OR
 RENTER'S GROUND RENT DUE AND PAID IN THE YEAR  FOR  WHICH  THE  ELIGIBLE
 HOMEOWNER  OR  ELIGIBLE  RENTER APPLIES FOR THE REBATE. IF THE AUTHORITY
 DETERMINES A HOMEOWNER TO BE AN ELIGIBLE HOMEOWNER OR A RENTER TO BE  AN
 ELIGIBLE RENTER FOR A GIVEN YEAR, THE AUTHORITY SHALL PERMIT SUCH ELIGI-
 BLE HOMEOWNER OR ELIGIBLE RENTER TO CERTIFY THAT THEY EXPECT TO MEET THE
 ELIGIBILITY  CRITERIA  IN  THE NEXT SUCCEEDING YEAR; UPON REVIEWING SUCH
 CERTIFICATION AND FINDING THAT SUCH HOMEOWNER OR RENTER IS LIKELY TO  BE
 AN  ELIGIBLE  HOMEOWNER OR ELIGIBLE RENTER IN SUCH NEXT SUCCEEDING YEAR,
 THE AUTHORITY SHALL, TO THE EXTENT  PRACTICABLE,  OFFER  A  PROPORTIONAL
 SHARE  OF THE EXPECTED ANNUAL REBATE IN THE FORM OF A PERIODIC REBATE OR
 DISCOUNT DURING THE YEAR FOR WHICH THE HOMEOWNER OR RENTER  IS  EXPECTED
 TO BE ELIGIBLE.
   (C)  WITHIN  ONE  HUNDRED  EIGHTY  DAYS  OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, THE AUTHORITY SHALL PROMULGATE PROCEDURES FOR APPLYING  FOR
 SUCH  REBATE,  AND  SET STANDARDS FOR REVIEWING APPLICATIONS AND CERTIF-
 ICATIONS, ASSESSING THE ACCURACY OF ANY INFORMATION NECESSARY TO  DETER-
 MINE ELIGIBILITY, AND MAKING PAYMENTS TO APPLICANTS FOUND TO BE ELIGIBLE
 AND THOSE EXPECTED TO BE ELIGIBLE IN THE NEXT SUCCEEDING YEAR.
   § 2. This act shall take effect immediately.

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