Bill S194-2011

Relates to the assessed valuation of certain real property used for residential real property in the county of Orleans

Exempts Orleans county from the requirement that the assessed value of residential real property used for rental purposes take into account the impact of any rent restrictions, affordability requirements or other restrictions prescribed by federal, state or municipal programs.

Details

Actions

  • Jan 4, 2012: REFERRED TO LOCAL GOVERNMENT
  • Jan 5, 2011: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S194

TITLE OF BILL: An act to amend the real property tax law, in relation to the assessed valuation of certain real property used for residential real property in the county of Orleans

PURPOSE: To exempt Orleans county from a law requiring that the assessed value of residential real property used for rental purposes take into account the impact of any rent restrictions, affordability requirements or any other restrictions prescribed by federal, state or municipal programs.

SUMMARY OF PROVISIONS: Section 1 of the bill exempts Orleans county from the law requiring that the assessed value of residential real property used for rental purposes take into account the impact of any rent restrictions, affordability requirements or any other restrictions prescribed by federal, state or municipal programs. Section 2 is the effective date.

JUSTIFICATION: While the existing law is extremely well intentioned in providing affordable housing in higher income and larger populated areas, the offshoot occurs when a project occurs in a much smaller County, such as Orleans. In this instance the current exemption would severely effect the Town the project takes part in, the local school district, and the County itself. This legislation merely exempts Orleans county from this law, much the same way New York City was exempted in the original bill.

LEGISLATIVE HISTORY: S.2031 2007/2008; Referred to Local Government S.1419 of 2009/2010; Referred to Local Government

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately and shall apply to taxable status dates occurring on or after January first next succeeding the date this act shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 194 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. MAZIARZ -- 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 assessed valuation of certain real property used for residential real property in the county of Orleans THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 581-a of the real property tax law, as added by chapter 714 of the laws of 2005, is amended to read as follows: S 581-a. Assessment of residential real property. Notwithstanding any other provision of law, the assessed valuation of real property used for residential rental purposes where at least twenty percent of the resi- dential units are subject to an agreement with a municipality, the state, the federal government, or an instrumentality thereof, which agreement restricts occupancy of those units to tenants who qualify in accordance with an income test, shall be determined using the income approach as applied to the actual net operating income, after deducting for reserves required by any federal, state or municipal programs. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IN THE COUNTY OF ORLEANS. For the purposes of this section "net operating income" shall mean the actu- al or anticipated net income that remains after all operating expenses are deducted from effective gross income, but before mortgage debt service and book depreciation are deducted. The assessed valuation of real property used for such residential rental purposes shall be deter- mined using the actual net operating income, and shall not include federal, state or municipal income tax credits, subsidized mortgage financing, or project grants, where such subsidies are used to offset the project development cost in order to provide for lower initial rents as determined by regulations promulgated by the division of housing and community renewal. S 2. This act shall take effect immediately and shall apply to taxable status dates occurring on or after the first of January next succeeding the date on which it shall have become a law.

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