NY State Senate Bill 2023-S7865A

Senate Bill S7865A

2023-2024 Legislative Session

Establishes an optional local tax exemption for affordable multi-family housing, to be implemented based on regional recommendations developed by the division of housing and community renewal

download bill text pdf

Current Bill Status - In Senate Committee Housing, Construction And Community Development 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 26, 2024	print number 7865a
Mar 26, 2024	amend and recommit to housing, construction and community development
Jan 03, 2024	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

co-Sponsors

2023-S7865 - Details

See Assembly Version of this Bill:: A9680
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Add §421-p, RPT L

2023-S7865 - Summary

Establishes an optional local tax exemption for affordable multi-family housing, to be implemented by cities, towns and villages based on recommendations developed by the division of housing and community renewal for each economic development region.

2023-S7865 - Sponsor Memo

                                 
BILL NUMBER: S7865

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to establishing
an optional local tax exemption for affordable multi-family housing

 
PURPOSE:

To establish region-specific affordable housing recommendations

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 proposes tax exemptions for newly-constructed rental multiple
dwellings, with affordability criteria, region-specific recommendations,
and periodic updates by the Division of Homes and Community Renewal

Section 2 establishes the effective date of the bill

 
JUSTIFICATION:

In our current housing systems, Industrial Development Agencies (IDAs)
across the state typically evaluate proposals for housing tax exemptions
on a case-by-case basis. This system is inefficient and increases the
risk of municipalities entering into unfavorable agreements. Developers
seeking to build affordable housing also do not know what standards and
policy to aim for, which makes the process of building unpredictable and
difficult.

By setting standards up front through local laws, housing developers can
know what requirements for affordability are to be granted, and can plan
accordingly. Upfront standards ensure good deals for municipalities by
establishing clear criteria, helping communities achieve their afforda-
ble housing goals by using tax policy as a clear tool.

The recommendations will be updated every two years by the Department of
Homes and Community Renewal, ensuring that affordable housing policies
remain up-to-date and adapt to changing economic conditions,
construction costs, and housing market dynamics. This flexibility allows
the state to respond promptly to evolving challenges and opportunities
in housing. This aims to address the challenges posed by expensive and
affordable housing markets, establishing a more comprehensive strategy
than the current ad hoc system.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2023-S7865 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7865
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to amend the real property tax law, in relation to establishing
   an optional local tax exemption for affordable multi-family housing
 
   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 421-p to read as follows:
   § 421-P. EXEMPTION OF NEWLY-CONSTRUCTED RENTAL MULTIPLE DWELLINGS.  1.
 (A) A CITY, TOWN OR VILLAGE MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION
 OF RENTAL MULTIPLE DWELLINGS CONSTRUCTED IN A BENEFIT AREA DESIGNATED IN
 SUCH  LOCAL LAW FROM TAXATION AND SPECIAL AD VALOREM LEVIES, AS PROVIDED
 IN THIS SECTION. SUBSEQUENT TO THE ADOPTION OF SUCH  A  LOCAL  LAW,  ANY
 OTHER  MUNICIPAL  CORPORATION  IN  WHICH  THE DESIGNATED BENEFIT AREA IS
 LOCATED MAY LIKEWISE EXEMPT SUCH PROPERTY FROM ITS TAXATION AND  SPECIAL
 AD  VALOREM LEVIES BY LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, BY
 RESOLUTION.
   (B) AS USED IN THIS SECTION, THE TERM "BENEFIT AREA"  MEANS  THE  AREA
 WITHIN  A  CITY,  TOWN  OR VILLAGE, DESIGNATED BY LOCAL LAW, TO WHICH AN
 EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION, APPLIES.
   (C) THE TERM "RENTAL MULTIPLE DWELLING" MEANS A STRUCTURE, OTHER  THAN
 A  HOTEL,  CONSISTING OF TWENTY OR MORE DWELLING UNITS, WHERE ALL OF THE
 UNITS ARE RENTED FOR RESIDENTIAL PURPOSES, AND SUCH UNITS, UPON  INITIAL
 RENTAL  AND  UPON  EACH SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE
 BENEFIT PERIOD, ARE AFFORDABLE TO AND RESTRICTED TO OCCUPANCY  BY  INDI-
 VIDUALS  OR  FAMILIES  WHOSE  HOUSEHOLD INCOME DOES NOT EXCEED A CERTAIN
 PERCENTAGE, AS DETERMINED BASED  ON  RECOMMENDATIONS  DEVELOPED  BY  THE
 DIVISION  OF HOUSING AND COMMUNITY RENEWAL FOR EACH ECONOMIC DEVELOPMENT
 REGION, OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, ON AVERAGE,
 AT THE TIME THAT SUCH HOUSEHOLDS INITIALLY OCCUPY SUCH  DWELLING  UNITS.
 SUCH  RESTRICTION PERIOD SHALL BE IN EFFECT COTERMINOUS WITH THE BENEFIT
 PERIOD, PROVIDED, HOWEVER, THAT THE  TENANT  OR  TENANTS  IN  AN  INCOME
 RESTRICTED  DWELLING UNIT AT THE TIME SUCH RESTRICTION PERIOD ENDS SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11990-02-3
 S. 7865                             2

 HAVE THE RIGHT TO LEASE RENEWALS AT THE INCOME  RESTRICTED  LEVEL  UNTIL
 SUCH  TIME  AS  SUCH  TENANT  OR TENANTS PERMANENTLY VACATE THE DWELLING
 UNIT.
   2.  (A)  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL DEVELOP
 RECOMMENDATIONS FOR EACH ECONOMIC DEVELOPMENT REGION, AS ESTABLISHED  BY
 SECTION  TWO  HUNDRED  THIRTY OF THE ECONOMIC DEVELOPMENT LAW, REGARDING
 THE IMPLEMENTATION OF THE EXEMPTION CREATED UNDER THIS SECTION.  CITIES,
 TOWNS,  AND  VILLAGES  PROVIDING SUCH EXEMPTION SHALL HAVE THE OPTION TO
 OPT INTO SUCH RECOMMENDATIONS.
   (B) SUCH RECOMMENDATIONS SHALL:
   (I) CONSIDER THE FINANCIAL FEASIBILITY OF CONSTRUCTING  AND  OPERATING
 NEW HOUSING IN EACH ECONOMIC DEVELOPMENT REGION, INCLUDING ANY VARIATION
 IN CONSTRUCTION COSTS AND OPERATING INCOMES FOR RENTAL MULTIPLE DWELLING
 PROJECTS  IN  DIFFERENT  PARTS OF EACH SUCH REGION, AND AMONG SUBSIDIZED
 AND UNREGULATED RENTAL MULTIPLE DWELLING PROJECTS;
   (II)  INCLUDE  RECOMMENDATIONS  FOR  BOTH  RENTAL  MULTIPLE   DWELLING
 PROJECTS  RECEIVING ADDITIONAL SUBSIDIES OR EXEMPTIONS AND RENTAL MULTI-
 PLE DWELLING PROJECTS RECEIVING NO ADDITIONAL SUBSIDIES  OR  EXEMPTIONS;
 AND
   (III)  INCLUDE  RECOMMENDATIONS  FOR AFFORDABLE HOMEOWNERSHIP PROJECTS
 RECEIVING ADDITIONAL SUBSIDIES OR EXEMPTIONS AND  AFFORDABLE  HOMEOWNER-
 SHIP PROJECTS RECEIVING NO ADDITIONAL SUBSIDES OR EXEMPTIONS.
   (C)  SUCH  RECOMMENDATIONS SHALL BE UPDATED BY THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL NO LESS THAN ONCE EVERY TWO YEARS.
   3. APPLICATION FOR EXEMPTION UNDER THIS SECTION SHALL  BE  MADE  ON  A
 FORM  PRESCRIBED  BY  THE COMMISSIONER AND FILED WITH THE ASSESSOR ON OR
 BEFORE THE APPLICABLE TAXABLE STATUS DATE.
   4. IN THE CASE OF NEWLY CONSTRUCTED PROPERTY WHICH IS  USED  PARTIALLY
 AS  A  RENTAL  MULTIPLE  DWELLING  AND PARTIALLY FOR COMMERCIAL OR OTHER
 PURPOSES, THE PORTION OF THE NEWLY CONSTRUCTED PROPERTY THAT IS USED  AS
 A  RENTAL  MULTIPLE DWELLING SHALL BE ELIGIBLE FOR THE EXEMPTION AUTHOR-
 IZED BY THIS SECTION IF:
   (A) THE SQUARE FOOTAGE OF THE PORTION USED AS A RENTAL MULTIPLE DWELL-
 ING REPRESENTS AT LEAST FIFTY PERCENT  OF  THE  SQUARE  FOOTAGE  OF  THE
 ENTIRE PROPERTY;
   (B)  THE  RENTAL  UNITS  ARE  AFFORDABLE TO INDIVIDUALS OR FAMILIES AS
 DETERMINED ACCORDING TO THE CRITERIA  SET  FORTH  IN  PARAGRAPH  (C)  OF
 SUBDIVISION ONE OF THIS SECTION; AND
   (C)  THE  REQUIREMENTS  OF  THIS  SECTION ARE OTHERWISE SATISFIED WITH
 RESPECT TO THE PORTION OF THE PROPERTY USED AS A RENTAL MULTIPLE  DWELL-
 ING.
   5.  THE EXEMPTION AUTHORIZED BY THIS SECTION SHALL NOT BE AVAILABLE IN
 A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   6. ANY RECIPIENT OF THE EXEMPTION AUTHORIZED BY THIS SECTION OR  THEIR
 DESIGNEE  SHALL  CERTIFY  COMPLIANCE WITH THE PROVISIONS OF THIS SECTION
 UNDER PENALTY OF PERJURY, AT SUCH TIME OR TIMES AND IN  SUCH  MANNER  AS
 MAY  BE PRESCRIBED IN THE LOCAL LAW ADOPTED BY THE CITY, TOWN OR VILLAGE
 PURSUANT TO PARAGRAPH (A) OF SUBDIVISION ONE OF THIS SECTION,  OR  BY  A
 SUBSEQUENT  LOCAL  LAW.  SUCH  CITY,  TOWN OR VILLAGE MAY ESTABLISH SUCH
 PROCEDURES AS IT DEEMS NECESSARY FOR MONITORING AND ENFORCING COMPLIANCE
 OF AN ELIGIBLE BUILDING WITH THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.

co-Sponsors

2023-S7865A (ACTIVE) - Details

See Assembly Version of this Bill:: A9680
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Add §421-p, RPT L

2023-S7865A (ACTIVE) - Summary

2023-S7865A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7865A

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to establishing
an optional local tax exemption for affordable multi-family housing

 
PURPOSE:

To establish region-specific affordable housing recommendations

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 proposes tax exemptions for newly-constructed or converted
rental multiple dwellings, with affordability criteria, region-specific
recommendations, and periodic updates by the Division of Homes and
Community Renewal

Section 2 establishes the effective date of the bill

***Amendments to this version of the bill include specific language

regarding conversion provisions falling under the scope of this bill

 
JUSTIFICATION:

In our current housing systems, Industrial Development Agencies (IDAs)
across the state typically evaluate proposals for housing tax exemptions
on a case-by-case basis. This system is inefficient and increases the
risk of municipalities entering into unfavorable agreements. Developers
seeking to build affordable housing also do not know what standards and
policy to aim for, which makes the process of building unpredictable and
difficult.

By setting standards up front through local laws, housing developers can
know what requirements for affordability are to be granted, and can plan
accordingly. Upfront standards ensure good deals for municipalities by
establishing clear criteria, helping communities achieve their afforda-
ble housing goals by using tax policy as a clear tool.

The recommendations will be updated every two years by the Department of
Homes and Community Renewal, ensuring that affordable housing policies
remain up-to-date and adapt to changing economic conditions,
construction costs, and housing market dynamics. This flexibility allows
the state to respond promptly to evolving challenges and opportunities
in housing. This aims to address the challenges posed by expensive and
affordable housing markets, establishing a more comprehensive strategy
than the current ad hoc system.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately

2023-S7865A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7865--A
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced  by  Sens. MAY, COONEY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Housing, Construction
   and Community  Development  --  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 establishing
   an optional local tax exemption for affordable multi-family housing
 
   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 421-p to read as follows:
   § 421-P. EXEMPTION OF NEWLY-CONSTRUCTED OR CONVERTED  RENTAL  MULTIPLE
 DWELLINGS.  1.    (A) A CITY, TOWN OR VILLAGE MAY, BY LOCAL LAW, PROVIDE
 FOR THE EXEMPTION OF RENTAL MULTIPLE DWELLINGS CONSTRUCTED OR  CONVERTED
 IN A BENEFIT AREA DESIGNATED IN SUCH LOCAL LAW FROM TAXATION AND SPECIAL
 AD  VALOREM  LEVIES,  AS  PROVIDED  IN  THIS  SECTION. SUBSEQUENT TO THE
 ADOPTION OF SUCH A LOCAL LAW, ANY OTHER MUNICIPAL CORPORATION  IN  WHICH
 THE DESIGNATED BENEFIT AREA IS LOCATED MAY LIKEWISE EXEMPT SUCH PROPERTY
 FROM  ITS TAXATION AND SPECIAL AD VALOREM LEVIES BY LOCAL LAW, OR IN THE
 CASE OF A SCHOOL DISTRICT, BY RESOLUTION.
   (B) AS USED IN THIS SECTION, THE TERM "BENEFIT AREA"  MEANS  THE  AREA
 WITHIN  A  CITY,  TOWN  OR VILLAGE, DESIGNATED BY LOCAL LAW, TO WHICH AN
 EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION, APPLIES.
   (C) THE TERM "RENTAL MULTIPLE DWELLING" MEANS A STRUCTURE, OTHER  THAN
 A  HOTEL,  CONSISTING OF TWENTY OR MORE DWELLING UNITS, WHERE ALL OF THE
 UNITS ARE RENTED FOR RESIDENTIAL PURPOSES, AND SUCH UNITS, UPON  INITIAL
 RENTAL  AND  UPON  EACH SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE
 BENEFIT PERIOD, ARE AFFORDABLE TO AND RESTRICTED TO OCCUPANCY  BY  INDI-
 VIDUALS  OR  FAMILIES  WHOSE  HOUSEHOLD INCOME DOES NOT EXCEED A CERTAIN
 PERCENTAGE, AS DETERMINED BASED  ON  RECOMMENDATIONS  DEVELOPED  BY  THE
 DIVISION  OF HOUSING AND COMMUNITY RENEWAL FOR EACH ECONOMIC DEVELOPMENT
 REGION, OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, ON AVERAGE,
 AT THE TIME THAT SUCH HOUSEHOLDS INITIALLY OCCUPY SUCH  DWELLING  UNITS.
 SUCH  RESTRICTION PERIOD SHALL BE IN EFFECT COTERMINOUS WITH THE BENEFIT
 PERIOD, PROVIDED, HOWEVER, THAT THE  TENANT  OR  TENANTS  IN  AN  INCOME
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11990-03-4
 S. 7865--A                          2
 
 RESTRICTED  DWELLING UNIT AT THE TIME SUCH RESTRICTION PERIOD ENDS SHALL
 HAVE THE RIGHT TO LEASE RENEWALS AT THE INCOME  RESTRICTED  LEVEL  UNTIL
 SUCH  TIME  AS  SUCH  TENANT  OR TENANTS PERMANENTLY VACATE THE DWELLING
 UNIT.
   2.  (A)  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL DEVELOP
 RECOMMENDATIONS FOR EACH ECONOMIC DEVELOPMENT REGION, AS ESTABLISHED  BY
 SECTION  TWO  HUNDRED  THIRTY OF THE ECONOMIC DEVELOPMENT LAW, REGARDING
 THE IMPLEMENTATION OF THE EXEMPTION CREATED UNDER THIS SECTION.  CITIES,
 TOWNS,  AND  VILLAGES  PROVIDING SUCH EXEMPTION SHALL HAVE THE OPTION TO
 OPT INTO SUCH RECOMMENDATIONS.
   (B) SUCH RECOMMENDATIONS SHALL:
   (I) CONSIDER THE FINANCIAL FEASIBILITY OF CONSTRUCTING NEW HOUSING  OR
 CONVERTING A NON-RESIDENTIAL STRUCTURE TO A RENTAL MULTIPLE DWELLING AND
 OPERATING  SUCH  HOUSING  IN EACH ECONOMIC DEVELOPMENT REGION, INCLUDING
 ANY VARIATION IN CONSTRUCTION COSTS AND  OPERATING  INCOMES  FOR  RENTAL
 MULTIPLE  DWELLING  PROJECTS IN DIFFERENT PARTS OF EACH SUCH REGION, AND
 AMONG SUBSIDIZED AND UNREGULATED RENTAL MULTIPLE DWELLING PROJECTS;
   (II)  INCLUDE  RECOMMENDATIONS  FOR  BOTH  RENTAL  MULTIPLE   DWELLING
 PROJECTS  RECEIVING ADDITIONAL SUBSIDIES OR EXEMPTIONS AND RENTAL MULTI-
 PLE DWELLING PROJECTS RECEIVING NO ADDITIONAL SUBSIDIES  OR  EXEMPTIONS;
 AND
   (III)  INCLUDE  RECOMMENDATIONS  FOR THE CONVERSION OF NON-RESIDENTIAL
 PROPERTY FOR RESIDENTIAL USE.
   (C) SUCH RECOMMENDATIONS SHALL BE UPDATED BY THE DIVISION  OF  HOUSING
 AND COMMUNITY RENEWAL NO LESS THAN ONCE EVERY TWO YEARS.
   3.  APPLICATION  FOR  EXEMPTION  UNDER THIS SECTION SHALL BE MADE ON A
 FORM PRESCRIBED BY THE COMMISSIONER AND FILED WITH THE  ASSESSOR  ON  OR
 BEFORE THE APPLICABLE TAXABLE STATUS DATE.
   4.  IN  THE CASE OF A NEWLY CONSTRUCTED OR CONVERTED PROPERTY WHICH IS
 USED PARTIALLY AS A RENTAL MULTIPLE DWELLING AND PARTIALLY  FOR  COMMER-
 CIAL  OR  OTHER  PURPOSES, THE PORTION OF THE PROPERTY THAT IS USED AS A
 RENTAL MULTIPLE DWELLING SHALL BE ELIGIBLE FOR THE EXEMPTION  AUTHORIZED
 BY THIS SECTION IF:
   (A) THE SQUARE FOOTAGE OF THE PORTION USED AS A RENTAL MULTIPLE DWELL-
 ING  REPRESENTS  AT  LEAST  FIFTY  PERCENT  OF THE SQUARE FOOTAGE OF THE
 ENTIRE PROPERTY;
   (B) THE RENTAL UNITS ARE AFFORDABLE  TO  INDIVIDUALS  OR  FAMILIES  AS
 DETERMINED  ACCORDING  TO  THE  CRITERIA  SET  FORTH IN PARAGRAPH (C) OF
 SUBDIVISION ONE OF THIS SECTION; AND
   (C) THE REQUIREMENTS OF THIS  SECTION  ARE  OTHERWISE  SATISFIED  WITH
 RESPECT  TO THE PORTION OF THE PROPERTY USED AS A RENTAL MULTIPLE DWELL-
 ING.
   5. THE EXEMPTION AUTHORIZED BY THIS SECTION SHALL NOT BE AVAILABLE  IN
 A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   6.  ANY RECIPIENT OF THE EXEMPTION AUTHORIZED BY THIS SECTION OR THEIR
 DESIGNEE SHALL CERTIFY COMPLIANCE WITH THE PROVISIONS  OF  THIS  SECTION
 UNDER  PENALTY  OF  PERJURY, AT SUCH TIME OR TIMES AND IN SUCH MANNER AS
 MAY BE PRESCRIBED IN THE LOCAL LAW ADOPTED BY THE CITY, TOWN OR  VILLAGE
 PURSUANT  TO  PARAGRAPH  (A) OF SUBDIVISION ONE OF THIS SECTION, OR BY A
 SUBSEQUENT LOCAL LAW. SUCH CITY, TOWN  OR  VILLAGE  MAY  ESTABLISH  SUCH
 PROCEDURES AS IT DEEMS NECESSARY FOR MONITORING AND ENFORCING COMPLIANCE
 OF AN ELIGIBLE BUILDING WITH THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.

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Senate Bill S7865A

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Sponsored By

Rachel May

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Bill Amendments

co-Sponsors

Jeremy A. Cooney

2023-S7865 - Details

2023-S7865 - Summary

2023-S7865 - Sponsor Memo

2023-S7865 - Bill Text download pdf

co-Sponsors

Jeremy A. Cooney

2023-S7865A (ACTIVE) - Details

2023-S7865A (ACTIVE) - Summary

2023-S7865A (ACTIVE) - Sponsor Memo

2023-S7865A (ACTIVE) - Bill Text download pdf

Comments