Extends until June 1, 2013, the deadline for local legislative action providing tax incentives for the rehabilitation or improvement of multiple dwellings.
Ayes (40): Addabbo, Alesi, Avella, Ball, Bonacic, Carlucci, DeFrancisco, Dilan, Farley, Flanagan, Fuschillo, Gallivan, Golden, Griffo, Grisanti, Hannon, Johnson, Kennedy, Klein, Lanza, LaValle, Libous, Little, Marcellino, Martins, Maziarz, Nozzolio, O'Mara, Ranzenhofer, Ritchie, Robach, Saland, Savino, Seward, Skelos, Stewart-Cousin, Storobin, Valesky, Young, Zeldin
Nays (13): Adams, Breslin, Duane, Gianaris, Hassell-Thomps, Montgomery, Parker, Perkins, Rivera, Sampson, Serrano, Squadron, Stavisky
Absent (5): Larkin, McDonald, Oppenheimer, Peralta, Smith
Excused (4): Diaz, Espaillat, Huntley, Krueger
TITLE OF BILL: An act to amend the real property tax law, in relation to exemption from taxation of alterations and improvements to multiple dwellings
PURPOSE: To extend the J-51 program of tax abatements for the renovation and upgrading of multiple dwellings.
SUMMARY: This bill extends Section 489 of the Real property Tax law known as the City of New York as the J-51 program. It would extend retroactively, from June 1, 2011 until June 1, 2013, the deadline for local legislative action providing tax incentives for the rehabilitation and upgrading of multiple dwellings. Currently the law also provides that in order to be eligible to receive J-51 benefits, a development must have been completed prior to December 31, 2011. This amendment would authorize the local legislative body to extend that date until December 31, 2013.
JUSTIFICATION: The continuing shortage of affordable housing in the City of New York requires the extension of tax exemption programs that serve as an incentive to owners to maintain and upgrade existing multiple dwellings. J-51 benefits apply to a variety of improvements including, but not limited to, the installation or replacement of heating systems, plumbing, wiring, elevators, windows and a range of other major capital improvements. The program also grants tax benefits to owners of non-residential buildings who convert their buildings to residential use. The program issues 14 or 34 year exemptions from taxes on any increase in assessed valuation resulting from those alterations certified by the City's Department of Housing Preservation and Development ("HPD") and an abatement of property taxes of construction costs as certified by HPD.
The J-51 program has been primarily responsible for the rehabilitation and upgrading of New York City's housing stock since 1955. It has also been essential in ensuring that affordable housing will continue to be available to the residents of New York City.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: Immediately, and retroactively to the date of the expiration of the authority for the City to enact J-51 legislation, June 1, 2011.
STATE OF NEW YORK ________________________________________________________________________ 7648 IN SENATE June 11, 2012 ___________Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the real property tax law, in relation to exemption from taxation of alterations and improvements to multiple dwellings THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of paragraph (a) of subdivision 1 of section 489 of the real property tax law, as amended by chapter 244 of the laws of 2006, is amended to read as follows: Any city to which the multiple dwelling law is applicable, acting through its local legislative body or other governing agency, is hereby authorized and empowered, to and including June first, two thousand
[eleven]THIRTEEN, to adopt and amend local laws or ordinances providing that any increase in assessed valuation of real property shall be exempt from taxation for local purposes, as provided herein, to the extent such increase results from: S 2. The closing paragraph of subparagraph 6 of paragraph (a) of subdivision 1 of section 489 of the real property tax law, as amended by chapter 244 of the laws of 2006, is amended to read as follows: Such conversion, alterations or improvements shall be completed within thirty-six months after the date on which same shall be started except that such thirty-six month limitation shall not apply to conversions of residential units which are registered with the loft board in accordance with article seven-C of the multiple dwelling law pursuant to subpara- graph one of this paragraph. Notwithstanding the foregoing, a sixty month period for completion shall be available for alterations or improvements undertaken by a housing development fund company organized pursuant to article eleven of the private housing finance law, which are carried out with the substantial assistance of grants, loans or subsi- dies from any federal, state or local governmental agency or instrumen- tality or which are carried out in a property transferred from such city if alterations and improvements are completed within seven years after the date of transfer. In addition, the local housing agency is hereby empowered to grant an extension of the period of completion for anyEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15754-02-2 S. 7648 2
project carried out with the substantial assistance of grants, loans or subsidies from any federal, state or local governmental agency or instrumentality, if such alterations or improvements are completed with- in sixty months from commencement of construction. Provided, further, that such conversion, alterations or improvements shall in any event be completed prior to December thirty-first, two thousand
[eleven]THIRTEEN. Exemption for conversions, alterations or improvements pursu- ant to subparagraph one, two, three or four of this paragraph shall continue for a period not to exceed fourteen years and begin no sooner than the first quarterly tax bill immediately following the completion of such conversion, alterations or improvements. Exemption for alter- ations or improvements pursuant to this subparagraph or subparagraph five of this paragraph shall continue for a period not to exceed thir- ty-four years and shall begin no sooner than the first quarterly tax bill immediately following the completion of such alterations or improvements. Such exemption shall be equal to the increase in the valu- ation which is subject to exemption in full or proportionally under this subdivision for ten or thirty years, whichever is applicable. After such period of time, the amount of such exempted assessed valuation of such improvements shall be reduced by twenty percent in each succeeding year until the assessed value of the improvements are fully taxable. Provided, however, exemption for any conversion, alterations or improve- ments which are aided by a loan or grant under article eight, eight-A, eleven, twelve, fifteen or twenty-two of the private housing finance law, section six hundred ninety-six-a or section ninety-nine-h of the general municipal law, or section three hundred twelve of the housing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the Cran- ston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et. seq.), or started after July first, nineteen hundred eighty-three by a housing development fund company organized pursuant to article eleven of the private housing finance law which are carried out with the substan- tial assistance of grants, loans or subsidies from any federal, state or local governmental agency or instrumentality or which are carried out in a property transferred from any city and where alterations and improve- ments are completed within seven years after the date of transfer may commence at the beginning of any tax quarter subsequent to the start of such conversion, alterations or improvements and prior to the completion of such conversion, alterations or improvements. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 1, 2011.