Relates to authorizing the granting of an additional real property tax exemption for certain redevelopment company projects.
Ayes (59): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, 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, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Excused (2): Espaillat, Golden
TITLE OF BILL: An act to amend the private housing finance law, in relation to authorizing the granting of an additional real property tax exemption for certain redevelopment company projects
PURPOSE OR GENERAL IDEA OF BILL:
Allows the New York City Council to grant Penn South up to fifty years of additional tax exempt status from certain local and municipal taxes, provided that it continues to maintain its status as affordable housing.
SUMMARY OF SPECIFIC PROVISIONS:
This bill would authorize a local legislative body in a city with a population of one million or more to grant an additional tax exemption from certain local and municipal taxes for a period of up to fifty years wherever it has acted to extend a tax exemption of a mutual redevelopment company for the maximum period provided in paragraph (a-2) of subdivision 1 of Section 125 of the Private Housing Finance Law, provided that the amount of taxes to be paid during such additional period of tax exemption shall be not less than an amount equal to the greater of ten percent of the annual rent or carrying charges of the project minus utilities for the residential portion of the project or the taxes payable by such mutual redevelopment company for the residential portion of the project during the tax year commencing July 1, 2000 and ending on June 30, 2001.
Mutual Redevelopment Houses, Inc. (more commonly known as "Penn South") is a redevelopment company organized pursuant to Article V of the Private Housing Finance Law that is located in the Chelsea area of Manhattan, an area that has experienced tremendous growth in real property values in recent years. Penn South still has managed to maintain its affordability in the face of the City's growing shortage of affordable housing. Penn South is undertaking a critically essential and very costly HVAC replacement project which has required a private loan and the aid of mortgage loan financing from the New York City Housing Development Corporation. In order to pay for the necessary work, Penn South has imposed a ten-year annual capital assessment, which began on June 1, 2011, on its resident cooperators and a special assessment on the sale of apartments. In addition, Penn South's surcharge revenue has been increased.
This bill would allow the local legislative body, in support of Penn South's remaining affordable, to provide up to fifty years of additional tax exemption to Penn South provided that it continues to maintain its status as affordable housing.
PRIOR LEGISLATIVE HISTORY:
None to the state
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ S. 7709 A. 9937 S E N A T E - A S S E M B L Y June 2, 2014 ___________IN SENATE -- Introduced by Sen. HOYLMAN -- read twice and ordered print- ed, and when printed to be committed to the Committee on Housing, Construction and Community Development IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M. of A. Gottfried) -- read once and referred to the Committee on Housing AN ACT to amend the private housing finance law, in relation to author- izing the granting of an 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. Subdivision 1 of section 125 of the private housing finance law is amended by adding a new paragraph (a-4) to read as follows: (A-4) ANY INCONSISTENT PROVISION OF LAW NOTWITHSTANDING, IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, WHERE A LOCAL LEGISLATIVE BODY HAS ACTED TO EXTEND THE TAX EXEMPTION OF A MUTUAL REDEVELOPMENT COMPANY FOR THE MAXIMUM PERIOD PROVIDED FOR IN PARAGRAPH (A-2) OF THIS SUBDIVISION, THE LOCAL LEGISLATIVE BODY MAY GRANT AN ADDITIONAL TAX EXEMPTION FOR A PERIOD OF UP TO FIFTY YEARS, PROVIDED THAT THE AMOUNT OF TAXES TO BE PAID DURING ANY SUCH PERIOD OF TAX EXEMPTION SHALL BE NOT LESS THAN AN AMOUNT EQUAL TO THE GREATER OF (I) TEN PER CENTUM 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 RESIDENTIAL PORTION OF THE PROJECT DURING THE TAX YEAR COMMENCING JULY FIRST, TWO THOUSAND AND ENDING ON JUNE THIRTIETH, TWO THOUSAND ONE. SUCH GRANT OF AN ADDITIONAL TAX EXEMPTION PERIOD SHALL TAKE EFFECT UPON THE EXPIRATION OF THE MAXIMUM PERIOD PROVIDED FOR IN PARAGRAPH (A-2) OF THIS SUBDIVISION. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15433-01-4