NY State Senate Bill 2023-S6255A

Senate Bill S6255A

2023-2024 Legislative Session

Relates to the assessment of residential real property transferred from a charitable nonprofit housing organization to low-income persons

download bill text pdf

Current Bill Status - In Senate Committee Local Government 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 28, 2024	print number 6255a
Mar 28, 2024	amend and recommit to local government
Jan 03, 2024	referred to local government
Apr 10, 2023	referred to local government

Bill Amendments

Original

A (Active)

2023-S6255 - Details

See Assembly Version of this Bill:: A6176
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add §581-c, RPT L

2023-S6255 - Summary

Relates to the assessment of residential real property transferred from a charitable nonprofit housing organization to low-income persons.

2023-S6255 - Sponsor Memo

                                 
BILL NUMBER: S6255

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the assessment
of residential real property transferred from a charitable nonprofit
housing organization to low-income persons

 
PURPOSE:

This bill amends the method by which property taxes are assessed when a
property is transferred from a charitable nonprofit housing organization
to a low-income person, increasing affordability and access to homeown-
ership for low-income populations.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new section 581-c to the Real Property Tax Law, estab-
lishing the method by which property taxes are assessed for residential
real property transferred from a charitable nonprofit housing organiza-
tion to a low-income person.

Section 2: Effective date.

 
JUSTIFICATION:

New York State's current property tax system disproportionately impacts
low and moderate-income homeowners who qualify for subsidized homeowner-
ship by exacerbating affordability challenges for prospective home
buyers and existing homeowners in New York State.  Property taxes impact
the affordability of homeownership for low-income individuals as these
property taxes are factored into the mortgage a prospective homebuyer
will qualify for, often leading to low-income households only qualifying
for mortgages in jurisdictions with low property taxes.

New York State has demonstrated its commitment to advance affordable
housing, however, New York State's property tax policies currently
hinder access to homeownership for low to moderate-income households.
Our communities cannot survive without affordable homes for people to
work and raise their children in. More and more employers throughout the
state cannot find local workers due to a lack of local affordable hous-
ing. This critical piece of legislation will change the method by which
property taxes for homes transferred from charitable nonprofit housing
organizations to qualifying low-income persons are assessed, increasing
affordability and access of homeownership.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S6255 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6255
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 10, 2023
                                ___________
 
 Introduced  by  Sen. HINCHEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in relation to the assessment
   of residential real property transferred from a  charitable  nonprofit
   housing organization to low-income persons

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 581-c to read as follows:
   §  581-C.  ASSESSMENT  OF RESIDENTIAL REAL PROPERTY TRANSFERRED FROM A
 CHARITABLE NONPROFIT HOUSING ORGANIZATION TO A LOW-INCOME PERSON. 1.  AS
 USED IN THIS SECTION:
   (A) "CHARITABLE NONPROFIT HOUSING  ORGANIZATION"  MEANS  A  CHARITABLE
 NONPROFIT  ORGANIZATION  WHOSE  PRIMARY  PURPOSE  IS THE CONSTRUCTION OR
 RENOVATION OF RESIDENTIAL HOUSING FOR CONVEYANCE TO A LOW-INCOME PERSON.
   (B) "ELIGIBLE NONPROFIT HOUSING PROPERTY" OR "PROPERTY" MEANS PROPERTY
 OWNED BY A CHARITABLE NONPROFIT HOUSING ORGANIZATION, THE  OWNERSHIP  OF
 WHICH  THE CHARITABLE NONPROFIT HOUSING ORGANIZATION INTENDS TO TRANSFER
 TO A LOW-INCOME PERSON AFTER CONSTRUCTION OR RENOVATION OF THE  PROPERTY
 IS COMPLETED.
   (C)  "LOW-INCOME PERSON" MEANS A PERSON WITH A HOUSEHOLD INCOME OF NOT
 MORE THAN EIGHTY PERCENT OF THE AREA MEDIAN  INCOME  (AMI)  AS  ANNUALLY
 DEFINED  BY  THE  UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOP-
 MENT, WHO IS ELIGIBLE TO PARTICIPATE IN THE CHARITABLE NONPROFIT HOUSING
 ORGANIZATION'S PROGRAM BASED ON CRITERIA ESTABLISHED BY  THE  CHARITABLE
 NONPROFIT HOUSING ORGANIZATION.
   (D)  "INITIAL TAXABLE VALUE" AND "INITIAL ASSESSED VALUE" MEANS, FOR A
 TRANSFER OF  ELIGIBLE  NONPROFIT  HOUSING  PROPERTY  FROM  A  CHARITABLE
 NONPROFIT  HOUSING ORGANIZATION TO A LOW-INCOME PERSON THAT OCCURS ON OR
 AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, THE INITIAL TAXABLE VALUE
 AND INITIAL ASSESSED VALUE OF  THE  PROPERTY  SHALL  BE  THE  SUBSIDIZED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08607-02-3

 S. 6255                             2
 
 PURCHASE  PRICE  AS  DEFINED BY THE FIRST MORTGAGE AMOUNT FILED WITH THE
 COUNTY CLERK, PLUS THE CASH DOWN PAYMENT PAID BY THE PURCHASER, AS DOCU-
 MENTED BY CLOSING STATEMENT OR SWORN AFFIDAVIT  FILED  WITH  THE  COUNTY
 CLERK  OR  LOCAL  ASSESSOR'S  OFFICE BY THE SELLER'S ATTORNEY, AND SHALL
 BECOME FAIR MARKET VALUE FOR THAT PROPERTY ON THE ASSESSMENT ROLLS.
   (E) "SUBSEQUENT TAXABLE VALUE" AND "SUBSEQUENT ASSESSED VALUE"  MEANS,
 IN YEARS SUBSEQUENT TO THE CALENDAR YEAR OF THE TRANSFER, THE PROPERTY'S
 ASSESSED  VALUE  SHALL  REMAIN  BASED  ON  THE INITIAL TAXABLE VALUE AND
 INITIAL ASSESSED VALUE PLUS THE ACTUAL  COSTS  OF  CAPITAL  IMPROVEMENTS
 MADE,  IF  ANY,  UNTIL  THE  PROPERTY  IS  TRANSFERRED  FROM THE INITIAL
 PURCHASER. RECEIPTS FOR THE COSTS OF CAPITAL IMPROVEMENT MADE,  IF  ANY,
 SHALL  BE  SUBSTANTIATED  BY  RECEIPTS  OF  SAME. IN THE ABSENCE OF SUCH
 RECEIPTS, AN ASSESSED VALUE OF THE PROPERTY SHALL BE USED.
   2. FOR A TRANSFER OF EACH ELIGIBLE NONPROFIT HOUSING PROPERTY  FROM  A
 CHARITABLE  NONPROFIT  HOUSING  ORGANIZATION TO A LOW-INCOME PERSON THAT
 OCCURS ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, THE  INITIAL
 TAXABLE  VALUE AND INITIAL ASSESSED VALUE, AS DEFINED IN SUBDIVISION ONE
 OF THIS SECTION, SHALL BE THE PRESUMPTIVE TRUE CASH VALUE OF THE PROPER-
 TY. IN THE YEAR IMMEDIATELY SUCCEEDING THE YEAR IN WHICH THE TRANSFER OF
 THE PROPERTY OCCURS AND EACH YEAR THEREAFTER, THE PRESUMPTIVE CASH VALUE
 OF THE PROPERTY SHALL BE THE SUBSEQUENT  TAXABLE  VALUE  AND  SUBSEQUENT
 ASSESSED  VALUE,  AS  DEFINED  IN  SUBDIVISION ONE OF THIS SECTION.  ANY
 REASSESSMENT OF THE PROPERTY SHALL BE CONSISTENT WITH THE INITIAL  TAXA-
 BLE VALUE AND INITIAL ASSESSED VALUE OR THE SUBSEQUENT TAXABLE VALUE AND
 THE  SUBSEQUENT  ASSESSED  VALUE,  AS DEFINED IN SUBDIVISION ONE OF THIS
 SECTION.
   § 2. This act shall take effect immediately.

co-Sponsors

2023-S6255A (ACTIVE) - Details

See Assembly Version of this Bill:: A6176
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add §581-c, RPT L

2023-S6255A (ACTIVE) - Summary

Relates to the assessment of residential real property transferred from a charitable nonprofit housing organization to low-income persons.

2023-S6255A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6255A

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the assessment
of residential real property transferred from a charitable nonprofit
housing organization to low-income persons

 
PURPOSE:

This bill amends the method by which property taxes are assessed when a
property is transferred from a charitable nonprofit housing organization
to a low-income person, increasing affordability and access to homeown-
ership for low-income populations.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new section 581-c to the Real Property Tax Law, estab-
lishing the method by which property taxes are assessed for residential
real property transferred from a charitable nonprofit housing organiza-
tion to a low-income person.

Section 2: Effective date.

 
JUSTIFICATION:

New York State's current property tax system disproportionately impacts
low and moderate-income homeowners who qualify for subsidized homeowner-
ship by exacerbating affordability challenges for prospective home
buyers and existing homeowners in New York State.  Property taxes impact
the affordability of homeownership for low-income individuals as these
property taxes are factored into the mortgage a prospective homebuyer
will qualify for, often leading to low-income households only qualifying
for mortgages in jurisdictions with low property taxes.

New York State has demonstrated its commitment to advance affordable
housing, however, New York State's property tax policies currently
hinder access to homeownership for low to moderate-income households.
Our communities cannot survive without affordable homes for people to
work and raise their children in. More and more employers throughout the
state cannot find local workers due to a lack of local affordable hous-
ing. This critical piece of legislation will change the method by which
property taxes for homes transferred from charitable nonprofit housing
organizations to qualifying low-income persons are assessed, increasing
affordability and access of homeownership.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S6255A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6255--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 10, 2023
                                ___________
 
 Introduced  by  Sen. HINCHEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government -- recom-
   mitted to the Committee on Local Government in accordance with  Senate
   Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the real property tax law, in relation to the assessment
   of residential real property transferred from a  charitable  nonprofit
   housing organization to low-income persons
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 581-c to read as follows:
   §  581-C.  ASSESSMENT  OF RESIDENTIAL REAL PROPERTY TRANSFERRED FROM A
 CHARITABLE NONPROFIT HOUSING ORGANIZATION TO A LOW-INCOME PERSON. 1.  AS
 USED IN THIS SECTION:
   (A) "CHARITABLE NONPROFIT HOUSING  ORGANIZATION"  MEANS  A  CHARITABLE
 NONPROFIT  ORGANIZATION  WHOSE  PRIMARY  PURPOSE  IS THE CONSTRUCTION OR
 RENOVATION OF RESIDENTIAL HOUSING FOR CONVEYANCE TO A LOW-INCOME PERSON.
   (B) "ELIGIBLE NONPROFIT HOUSING PROPERTY" OR "PROPERTY" MEANS PROPERTY
 TRANSFERRED BY A CHARITABLE NONPROFIT HOUSING ORGANIZATION TO A  LOW-IN-
 COME  PERSON  AND  OCCUPIED  BY  SUCH LOW-INCOME PERSON AS THEIR PRIMARY
 RESIDENCE.
   (C) "LOW-INCOME PERSON" MEANS AN INDIVIDUAL OR FAMILY WHOSE  HOUSEHOLD
 INCOME  DOES  NOT EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME (AMI),
 ADJUSTED FOR FAMILY SIZE AND AS ANNUALLY DEFINED BY  THE  UNITED  STATES
 DEPARTMENT  OF HOUSING AND URBAN DEVELOPMENT, WHO IS ELIGIBLE TO PARTIC-
 IPATE IN THE CHARITABLE NONPROFIT HOUSING ORGANIZATION'S  PROGRAM  BASED
 ON CRITERIA ESTABLISHED BY THE CHARITABLE NONPROFIT HOUSING ORGANIZATION
 AND WHO OCCUPIES SUCH PROPERTY AS THEIR PRIMARY RESIDENCE.
   (D)  "INITIAL  TAXABLE  VALUE"  AND "INITIAL ASSESSED VALUE" MEANS THE
 SUBSIDIZED PURCHASE PRICE OF ANY ELIGIBLE NONPROFIT HOUSING PROPERTY AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08607-04-4

 S. 6255--A                          2
 
 THE FULL FAIR MARKET VALUE FOR SUCH NONPROFIT HOUSING  PROPERTY  ON  THE
 ASSESSMENT ROLLS WHICH SHALL NOT EXCEED THE SUBSIDIZED PURCHASE PRICE.
   (E)  "SUBSIDIZED  PURCHASE  PRICE" MEANS AN AMOUNT EQUAL TO THE SUM OF
 (I) THE FIRST MORTGAGE AMOUNT FILED WITH THE COUNTY CLERK, PLUS (II) THE
 ACTUAL CASH DOWN PAYMENT PAID BY THE PURCHASER. THE CLOSING STATEMENT OR
 SWORN AFFIDAVIT FILED WITH THE COUNTY CLERK OR LOCAL  ASSESSOR'S  OFFICE
 BY  THE  SELLER'S  ATTORNEY SHALL BE CONCLUSIVE EVIDENCE OF THE VALUE OF
 SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH.
   (F) "SUBSEQUENT TAXABLE VALUE" AND "SUBSEQUENT ASSESSED VALUE"  MEANS,
 IN  YEARS  SUBSEQUENT  TO THE CALENDAR YEAR OF THE TRANSFER, THE INITIAL
 ASSESSED VALUE OF ANY ELIGIBLE  NONPROFIT  HOUSING  PROPERTY;  PROVIDED,
 HOWEVER, THAT FOR AS LONG AS ANY LOW-INCOME PERSON OWNS AND OCCUPIES THE
 PROPERTY, THE ONLY BASIS FOR INCREASING THE INITIAL ASSESSED VALUE SHALL
 BE CAPITAL IMPROVEMENTS MADE TO THE PROPERTY, IF ANY.
   (G)  "TRANSFER"  MEANS  A  CONVEYANCE  OF AN INTEREST IN REAL PROPERTY
 WHETHER BY DEED OR A LEASEHOLD GRANT FOR NOT LESS THAN FORTY-NINE YEARS.
   2. FOR ANY ELIGIBLE NONPROFIT HOUSING PROPERTY ACQUIRED BY  A  LOW-IN-
 COME  PERSON  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE
 FULL MARKET VALUE OF SUCH PROPERTY SHALL NOT BE GREATER THAN THE INITIAL
 TAXABLE VALUE, AS DEFINED IN SUBDIVISION ONE OF THIS SECTION.    IN  THE
 YEAR  IMMEDIATELY  SUCCEEDING  THE  YEAR IN WHICH THE ACQUISITION OF ANY
 ELIGIBLE NONPROFIT HOUSING PROPERTY BY A LOW-INCOME  PERSON  OCCURS  AND
 EACH YEAR THEREAFTER, THE FULL MARKET VALUE OF THE PROPERTY SHALL NOT BE
 GREATER THAN THE SUBSEQUENT TAXABLE VALUE AND SUBSEQUENT ASSESSED VALUE,
 AS  DEFINED IN SUBDIVISION ONE OF THIS SECTION.  ANY REASSESSMENT OF ANY
 ELIGIBLE NONPROFIT HOUSING PROPERTY SHALL IN NO EVENT EXCEED THE GREATER
 OF (I) THE INITIAL TAXABLE VALUE AND INITIAL ASSESSED VALUE OR (II)  THE
 SUBSEQUENT  TAXABLE  VALUE  AND SUBSEQUENT ASSESSED VALUE, AS DEFINED IN
 SUBDIVISION ONE OF THIS SECTION.
   § 2. This act shall take effect immediately.

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