Makes a technical correction to the additional real property tax exemption for certain redevelopment company projects.
Ayes (62): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Excused (1): Parker
TITLE OF BILL: An act to amend the private housing finance law, in relation to making technical corrections to the additional real property tax exemption for certain redevelopment company projects
PURPOSE: This bill would correct a technical error in Chapter 415 of the laws of 2012 to insure that the original intent of the legislation is upheld.
SUMMARY OF PROVISIONS:
Section 125 1 (a-3) is amended to limit the amount of taxes which must be paid by a local redevelopment company during an extension of the tax exemption benefit which has been granted by a municipality under Article 9 to the lesser of 1)10t of the annual rent or carrying charges on the project, minus utilities for the residential portion of the project, or 2)the taxes which were payable by the redevelopment company immediately prior to the expiration of the initial tax exemption period.
Chapter 415 of the laws of 2012 allows local governments the option to extend existing property tax abatements to existing affordable housing projects under the private housing finance law Article 5. These projects are primarily Section 8 housing developments built in the 70's and 80's, plus several USDA Section 515 developments. Last year's chapter contained a technical error which provided that a continuing tax assessment be limited to the "greater of" ,rather than the "lesser of" either 1) 10% of the annual rent or carrying charges on the project, minus utilities or 2) the taxes which were payable by the redevelopment company immediately prior to the expiration of the tax benefit to limit the renewed tax exemption. This law as written would have the unintended consequence of actually raising taxes upon these projects. In order to remedy this error, accomplish the original intent of last year's bill, and meet the expectations of affordable housing providers this change must be enacted.
LEGISLATIVE HISTORY: New Bill
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3843 2013-2014 Regular Sessions IN SENATE February 22, 2013 ___________Introduced by Sen. YOUNG -- 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 private housing finance law, in relation to making technical corrections to the additional real property tax exemption for certain redevelopment company projects THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (a-3) of subdivision 1 of section 125 of the private housing finance law, as added by chapter 415 of the laws of 2012, is amended to read as follows: (a-3) Any inconsistent provision of law notwithstanding, the local legislative body of any municipality may grant an additional tax exemption period for any project, other than a project by a mutual rede- velopment company, that received a tax exemption under paragraph (a) of this subdivision, upon the expiration of the tax exemption period. The additional tax exemption period may be for a term of fifty years, or until such time as the project is no longer operated under the restrictions and for the purposes set forth in this article, whichever is sooner. Unless otherwise approved by the local legislative body, the amount of taxes paid by the redevelopment company during such additional tax exemption period shall not be less than an amount equal to the
[greater]LESSER of (i) ten percent of the annual rent or carrying charges of the project, minus utilities for the residential portion of the project, or (ii) the taxes payable by such company for the residen- tial portion of the project immediately prior to the expiration of the initial tax exemption period. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07329-01-3