S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7002
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 18, 2025
                                ___________
 
 Introduced  by M. of A. TAPIA -- read once and referred to the Committee
   on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to prohibiting or
   limiting certain tax exemptions for real property in instances where a
   pattern or practice of discrimination against occupants has been found

   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 498 to read as follows:
   § 498.  DISCRIMINATION IN HOUSING. 1. FOR THE PURPOSES OF THIS SECTION
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "LAWFUL SOURCE OF INCOME" SHALL HAVE THE SAME MEANING  AS  DEFINED
 BY SECTION TWO HUNDRED NINETY-TWO OF THE EXECUTIVE LAW.
   (B)  "FINAL  DETERMINATION"  SHALL  MEAN  A DECISION THAT HAS NOT BEEN
 APPEALED OR A DECISION THAT HAS BEEN UPHELD ON APPEAL BY THE DIVISION OF
 HUMAN RIGHTS, THE ATTORNEY GENERAL, OR A COURT  OF  COMPETENT  JURISDIC-
 TION.
   2.  SUBJECT  TO  A  FINDING OF A PATTERN OR PRACTICE OF DISCRIMINATION
 UNDER SUBDIVISION THREE OF THIS SECTION, AN EXEMPTION FROM TAXATION  FOR
 REAL  PROPERTY  OTHERWISE  AUTHORIZED UNDER THIS ARTICLE APPROVED BY ANY
 STATE OR LOCAL AGENCY FOR A HOUSING COMPANY, INSURANCE COMPANY, REDEVEL-
 OPMENT COMPANY, OR REDEVELOPMENT CORPORATION SHALL  BE  SUBJECT  TO  THE
 PROVISIONS  OF  SUBDIVISION  FOUR OF THIS SECTION, WHERE THE DIVISION OF
 HUMAN RIGHTS, THE ATTORNEY GENERAL, OR A COURT OF COMPETENT JURISDICTION
 HAS FOUND THAT SUCH ENTITY, DIRECTLY OR  INDIRECTLY,  REFUSED,  WITHHELD
 FROM,  OR  DENIED  TO  ANY PERSON ANY OF A DWELLING OR BUSINESS ACCOMMO-
 DATIONS IN SUCH PROPERTY, OR THE PRIVILEGES  AND  SERVICES  INCIDENT  TO
 OCCUPANCY THEREOF, ON ACCOUNT OF RACE, COLOR, CREED, OR LAWFUL SOURCE OF
 INCOME OF SUCH PERSON.
   3.  THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION SHALL APPLY ONLY
 WHEN A PATTERN OR PRACTICE OF DISCRIMINATION HAS BEEN ESTABLISHED  BASED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10792-02-5
              

 A. 7002                             2
 
 ON  MULTIPLE FINAL DETERMINATIONS. A PATTERN OR PRACTICE SHALL BE DEEMED
 ESTABLISHED WHERE:
   (A)  FOR  LANDLORDS  OR  ENTITIES  OWNING OR MANAGING FEWER THAN FIFTY
 RESIDENTIAL UNITS STATEWIDE, AT LEAST TWO FINAL DETERMINATIONS OF UNLAW-
 FUL DISCRIMINATION BASED ON LAWFUL SOURCE OF INCOME HAVE BEEN MADE WITH-
 IN A FIVE-YEAR PERIOD;
   (B) FOR LANDLORDS OR ENTITIES OWNING OR  MANAGING  BETWEEN  FIFTY  AND
 FIVE  HUNDRED,  INCLUSIVE,  RESIDENTIAL  UNITS STATEWIDE, AT LEAST THREE
 FINAL DETERMINATIONS OF UNLAWFUL DISCRIMINATION HAVE BEEN MADE WITHIN  A
 FIVE-YEAR PERIOD; OR
   (C)  FOR  LANDLORDS  OR  ENTITIES  OWNING  OR  MANAGING MORE THAN FIVE
 HUNDRED RESIDENTIAL UNITS STATEWIDE, AT LEAST FIVE FINAL  DETERMINATIONS
 OF UNLAWFUL DISCRIMINATION HAVE BEEN MADE WITHIN A FIVE-YEAR PERIOD.
   4.  A  LANDLORD  OR  ENTITY  THAT HAS VIOLATED SUBDIVISION TWO OF THIS
 SECTION, AND FOUND TO HAVE ESTABLISHED A PATTERN OR PRACTICE OF DISCRIM-
 INATION UNDER SUBDIVISION THREE OF THIS SECTION, SHALL BE SUBJECT TO THE
 FOLLOWING PENALTIES:
   (A) FOR A FIRST VIOLATION BEYOND THE THRESHOLD UNDER SUBDIVISION THREE
 OF THIS SECTION, THE LANDLORD SHALL BE REQUIRED TO SUBMIT  A  CORRECTIVE
 ACTION  PLAN,  WHICH  SHALL BE APPROVED BY THE DIVISION OF HUMAN RIGHTS.
 SUCH PLAN SHALL INCLUDE MEASURES SUCH AS STAFF TRAINING,  REVISED  POLI-
 CIES,  AND  INDEPENDENT MONITORING. FAILURE TO SUBMIT SUCH APPROVED PLAN
 WITHIN SIXTY DAYS SHALL RESULT IN A TWENTY-FIVE PERCENT REDUCTION IN TAX
 EXEMPTION BENEFITS UNTIL COMPLIANCE IS DEMONSTRATED.
   (B) FOR A SECOND VIOLATION BEYOND THRESHOLD UNDER SUBDIVISION THREE OF
 THIS SECTION, ANY TAX EXEMPTION OTHERWISE AUTHORIZED UNDER THIS  CHAPTER
 FOR  THE SUBJECT PROPERTY SHALL BE REDUCED BY FIFTY PERCENT FOR A PERIOD
 OF TWO YEARS, AND THE LANDLORD SHALL BE SUBJECT TO MANDATORY  COMPLIANCE
 AUDITS BY THE DIVISION OF HUMAN RIGHTS.
   (C)  FOR A THIRD VIOLATION BEYOND THRESHOLD UNDER SUBDIVISION THREE OF
 THIS SECTION, ANY TAX EXEMPTION OTHERWISE AUTHORIZED UNDER THIS  CHAPTER
 FOR  THE SUBJECT PROPERTY SHALL BE FULLY REVOKED, AND THE LANDLORD SHALL
 BE INELIGIBLE FOR ANY NEW TAX EXEMPTIONS FOR  A  PERIOD  OF  FIVE  YEARS
 UNLESS  SUCH  LANDLORD  DEMONSTRATES  SUBSTANTIAL CORRECTIVE ACTIONS, AS
 DETERMINED BY THE DIVISION OF HUMAN RIGHTS.
   5. (A) IF A LANDLORD LOSES THEIR TAX EXEMPTION UNDER PARAGRAPH (C)  OF
 SUBDIVISION  FOUR  OF  THIS  SECTION,  SUCH LANDLORD MAY APPLY FOR REIN-
 STATEMENT AFTER A PERIOD OF THREE YEARS  IF  SUCH  LANDLORD  CAN  DEMON-
 STRATE:
   (I)  NO FURTHER FINDINGS OF DISCRIMINATION SINCE THE EXEMPTION REVOCA-
 TION;
   (II)  IMPLEMENTATION  OF  CORRECTIVE  MEASURES,   INCLUDING   TRAINING
 PROGRAMS, ANTI-DISCRIMINATION POLICIES, AND INDEPENDENT COMPLIANCE MONI-
 TORING; AND
   (III)  CERTIFICATION FROM THE DIVISION OF HUMAN RIGHTS THAT SUCH LAND-
 LORD IS IN GOOD STANDING UNDER THIS SECTION.
   (B) THE APPLICATION FOR REINSTATEMENT SHALL BE  REVIEWED  AND  DECIDED
 WITHIN ONE HUNDRED TWENTY DAYS BY THE APPROPRIATE STATE AGENCY.
   § 2. This act shall take effect immediately.