Senate Bill S7925

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7925
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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 a
   tax rebate program for rent-stabilized housing

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and  purpose.  The  legislature  finds
 that rent-stabilized apartments provide vital affordable housing to low-
 and  moderate-income  New Yorkers. However, property taxes can consume a
 disproportionate share  of  the  rental  income  from  such  apartments,
 threatening   their  long-term  affordability  and  sustainability.  The
 purpose of this act is to establish a tax rebate  program  that  targets
 buildings  with  individually  occupied rent-stabilized apartments where
 the property tax burden significantly exceeds rental income, and  to  do
 so in a fiscally responsible and administratively coordinated manner.
   §  2.  The  real  property  tax law is amended by adding a new section
 485-z to read as follows:
   § 485-Z. RENT-STABILIZED HOUSING TAX RELIEF REBATE PROGRAM.  1.  DEFI-
 NITIONS. FOR PURPOSES OF THIS SECTION:
   (A)  "RENT-STABILIZED  APARTMENT" MEANS A HOUSING UNIT SUBJECT TO RENT
 REGULATION UNDER THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN  SEVEN-
 TY-FOUR.
   (B)  "ELIGIBLE  BUILDING"  MEANS  A  RESIDENTIAL  BUILDING WHERE FIFTY
 PERCENT OR MORE OF THE UNITS ARE RENT-STABILIZED AND INDIVIDUALLY  OCCU-
 PIED.
   (C)  "EFFECTIVE  TAX  BURDEN" MEANS THE PERCENTAGE OF GROSS STABILIZED
 RENTAL INCOME ALLOCATED TO PROPERTY TAXES, AS DERIVED FROM REAL PROPERTY
 INCOME AND EXPENSE (RPIE) DATA OR EQUIVALENT DOCUMENTATION.
   (D) "UNIT TAX ALLOCATION FACTOR"  MEANS  A  STANDARDIZED  FORMULA,  AS
 PROMULGATED  BY  RULE, TO PROPORTIONALLY ALLOCATE PROPERTY TAX LIABILITY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11903-01-5
              

 S. 7925                             2
 
 FROM THE BUILDING LEVEL TO INDIVIDUAL  RENT-STABILIZED  UNITS  BASED  ON
 SQUARE FOOTAGE AND RENTAL INCOME.
   2.  ELIGIBILITY.  AN  OWNER  SHALL BE ELIGIBLE FOR A REBATE UNDER THIS
 SECTION IF:
   (A) THE EFFECTIVE TAX BURDEN FOR RENT-STABILIZED UNITS EXCEEDS  SEVEN-
 TY-FIVE PERCENT OF THE GROSS STABILIZED RENT RECEIVED;
   (B)  THE  CAPITALIZATION RATE OF THE BUILDING IS LESS THAN TWO PERCENT
 ABOVE THE FEDERAL PRIME RATE, BASED ON CERTIFIED  FINANCIAL  STATEMENTS;
 AND
   (C)  THERE ARE NO OPEN CLASS C HAZARDOUS VIOLATIONS ON RECORD WITH THE
 NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT OR  ITS
 EQUIVALENT,  OR  SUCH VIOLATIONS ARE CURED WITHIN SIX MONTHS OF APPLICA-
 TION.
   3. REBATE CALCULATION. THE REBATE AUTHORIZED PURSUANT TO THIS  SECTION
 SHALL  BE EQUAL TO FIFTY PERCENT OF THE PROPERTY TAX AMOUNT ATTRIBUTABLE
 TO RENT-STABILIZED APARTMENTS  THAT  EXCEEDS  THE  SEVENTY-FIVE  PERCENT
 THRESHOLD  DEFINED  IN SUBDIVISION TWO OF THIS SECTION. REBATES SHALL BE
 APPLIED AS CREDITS AGAINST THE FOLLOWING TAX YEAR'S  LIABILITY.  REBATES
 SHALL  BE  SUBJECT TO RECAPTURE IF THE BUILDING FAILS TO MAINTAIN ELIGI-
 BILITY FOR THE TWO YEARS FOLLOWING THE AWARD.
   4. APPLICATION PROCESS. (A) APPLICATIONS SHALL BE  SUBMITTED  ANNUALLY
 TO THE DEPARTMENT ON OR BEFORE JUNE THIRTIETH OF EACH YEAR.
   (B) EACH APPLICATION SHALL INCLUDE:
   (I) RENT ROLLS AND LEASE SUMMARIES;
   (II) RPIE FILINGS OR EQUIVALENT FINANCIAL DISCLOSURES;
   (III) PROPERTY TAX DOCUMENTATION; AND
   (IV) PROOF OF REGISTRATION WITH THE NEW YORK STATE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL AND, WHERE APPLICABLE, NEW YORK CITY DEPARTMENT OF
 HOUSING PRESERVATION AND DEVELOPMENT.
   (C) APPLICATION FEES SHALL BE:
   (I) ONE HUNDRED DOLLARS FOR BUILDINGS WITH FEWER THAN TEN UNITS; OR
   (II)  TWO  HUNDRED FIFTY DOLLARS OR TWENTY DOLLARS PER UNIT, WHICHEVER
 IS GREATER, FOR ALL OTHER BUILDINGS, NOT TO EXCEED TWO THOUSAND  DOLLARS
 PER TAX LOT.
   5.  ADMINISTRATION AND IMPLEMENTATION. (A) THE DEPARTMENT SHALL ADMIN-
 ISTER THE PROGRAM.
   (B) THE DEPARTMENT SHALL, WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFEC-
 TIVE DATE OF THIS SECTION, PROMULGATE RULES AND REGULATIONS NECESSARY TO
 IMPLEMENT THIS SECTION, INCLUDING:
   (I) A STANDARDIZED METHOD FOR CALCULATING UNIT TAX ALLOCATION FACTORS;
   (II) A SECURE ELECTRONIC APPLICATION PORTAL; AND
   (III) DATA-SHARING PROTOCOLS FOR INTERAGENCY ACCESS.
   (C) THE DEPARTMENT SHALL ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH
 THE NEW YORK CITY DEPARTMENT OF FINANCE, THE NEW YORK STATE DIVISION  OF
 HOMES AND COMMUNITY RENEWAL, AND THE NEW YORK CITY DEPARTMENT OF HOUSING
 PRESERVATION  AND DEVELOPMENT TO FACILITATE DATA EXCHANGE AND COMPLIANCE
 MONITORING.
   6. PILOT IMPLEMENTATION. THE PROGRAM SHALL INITIALLY BE IMPLEMENTED IN
 COMMUNITY BOARDS ESTABLISHED PURSUANT TO SECTION TWENTY-EIGHT HUNDRED OF
 THE NEW YORK CITY CHARTER WHERE THE MEDIAN  HOUSEHOLD  INCOME  IS  BELOW
 FORTY PERCENT OF THE AREA MEDIAN INCOME, AS DEFINED BY THE UNITED STATES
 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
   7. REPORTING AND EVALUATION. (A) THE DEPARTMENT SHALL SUBMIT AN ANNUAL
 REPORT  TO  THE  TEMPORARY  PRESIDENT  OF THE SENATE, THE SPEAKER OF THE
 ASSEMBLY, AND THE MINORITY LEADERS OF BOTH HOUSES ON OR  BEFORE  JANUARY
 FIRST EACH YEAR.
 S. 7925                             3
 
   (B) EVERY FOUR YEARS, THE DEPARTMENT SHALL CONDUCT A PERFORMANCE AUDIT
 AND MAY RECOMMEND REVISIONS TO ELIGIBILITY CRITERIA OR REBATE STRUCTURE.
   §  3. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become  a  law,  provided,  however,
 that no rebates shall be issued until the second full tax year following
 such  effective  date.  Effective  immediately,  the addition, amendment
 and/or repeal of any rule or regulation, and the execution of any inter-
 agency agreement by the department of taxation and finance necessary for
 the implementation of this act on its effective date are  authorized  to
 be made and completed on or before such effective date.