STATE OF NEW YORK ________________________________________________________________________ 216 2023-2024 Regular Sessions IN SENATE (Prefiled) January 4, 2023 ___________ Introduced by Sens. MYRIE, CLEARE, HOYLMAN, KRUEGER, RIVERA, SALAZAR -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to repeal section 421-a of the real property tax law, relating to the affordable New York housing program; to amend the real property tax law, the administrative code of the city of New York, and the private housing finance law, in relation to making necessary technical and conforming changes; and to repeal certain sections of the adminis- trative code of the city of New York relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 421-a of the real property tax law is REPEALED. 2 § 2. Section 11-245 of the administrative code of the city of New York 3 is REPEALED. 4 § 3. Section 11-245.1 of the administrative code of the city of New 5 York is REPEALED. 6 § 4. Section 11-245.1-a of the administrative code of the city of New 7 York is REPEALED. 8 § 5. Section 11-245.1-b of the administrative code of the city of New 9 York is REPEALED. 10 § 6. The thirteenth undesignated paragraph of subdivision a of section 11 6-130 of the administrative code of the city of New York, as amended by 12 local law number 212 of the city of New York for the year 2019, is 13 amended to read as follows: 14 "Lease" means any agreement whereby a contracting agency contracts 15 for, or leases or rents, commercial office space or commercial office 16 facilities of 10,000 square feet or more from a non-governmental entity 17 provided the city, whether through a single agreement or multiple agree- 18 ments, leases or rents no less than 51 percent of the total square 19 footage of the building to which the lease applies, or if such space or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00798-01-3
S. 216 2 1 such facility is entirely located within the geographic area in the 2 borough of Staten Island[, or in an area not defined as an exclusion 3 area pursuant to section 421-a of the real property tax law] on the date 4 of enactment of the local law that added this section, then no less than 5 80 percent of the total square footage of the building to which the 6 lease applies. Such agreements do not include agreements between not- 7 for-profit organizations and a contracting agency. 8 § 7. Subdivision 1 of section 11-239 of the administrative code of the 9 city of New York, as amended by local law number 40 of the city of New 10 York for the year 2007, is amended to read as follows: 11 1. For fiscal years beginning the first of July, two thousand three 12 and ending the thirtieth of June, two thousand nine, a rebate in the 13 amount of the lesser of four hundred dollars or the annual tax liability 14 imposed on the property shall be paid to an owner or tenant-stockholder 15 who, as of the date the application provided for in subdivision four of 16 this section is due, owns a one, two or three family residence or a 17 dwelling unit in residential property held in the condominium or cooper- 18 ative form of ownership that is the owner or tenant-stockholder's prima- 19 ry residence and meets all other eligibility requirements of this 20 section. If, with respect to the fiscal year beginning on the first of 21 July, two thousand eight and ending on the thirtieth of June, two thou- 22 sand nine, an increase in average real property tax rates would other- 23 wise be necessary in the resolution of the city council fixing real 24 property tax rates for such fiscal year pursuant to the charter, then 25 the rebate to be paid for such fiscal year shall be reduced or elimi- 26 nated as follows: where the sum to be raised by such increase is less 27 than seven hundred fifty million dollars, then such rebate shall be 28 reduced by fifty cents for each dollar of increase, and where the sum to 29 be raised by such increase is seven hundred fifty million dollars or 30 more, then such rebate shall be eliminated. Notwithstanding anything to 31 the contrary in sections [four hundred twenty-one-a,] four hundred twen- 32 ty-one-b or four hundred twenty-one-g of the real property tax law, an 33 owner or tenant-stockholder whose property is receiving benefits pursu- 34 ant to such sections shall not be prohibited from receiving a rebate 35 pursuant to this section if such owner or tenant-stockholder is other- 36 wise eligible to receive such rebate. Tenant-stockholders of dwelling 37 units in a cooperative apartment corporation incorporated as a mutual 38 company pursuant to article two, four, five or eleven of the private 39 housing finance law shall not be entitled to the rebate authorized by 40 this section. Such rebate shall be paid by the commissioner of finance 41 to eligible owners or tenant-stockholders in accordance with rules 42 promulgated by the commissioner of finance. 43 § 8. Subdivision h of section 26-901 of the administrative code of the 44 city of New York, as added by local law number 44 of the city of New 45 York for the year 2012, is amended to read as follows: 46 h. "Housing development project" means construction, rehabilitation or 47 alteration of any residential building, residential facility or residen- 48 tial structure by a developer (1) which creates or preserves at least 49 one dwelling unit; (2) which is funded in whole or in part by city 50 financial assistance other than non-discretionary tax abatements or 51 benefits approved or administered in accordance with [sections 421-a or 52 489] section four hundred eighty-nine of the [New York state] real prop- 53 erty tax law or other similar programs and (3) where the developer of 54 such project was not selected more than five years prior to the effec- 55 tive date of this chapter. The term "housing development project" shall 56 not include emergency repairs performed by or on behalf of the depart-
S. 216 3 1 ment pursuant to section 27-2125 of this code, work performed by or on 2 behalf of the department pursuant to section 27-2153 of this code, demo- 3 lition work performed by or on behalf of the department pursuant to 4 articles two hundred fifteen or two hundred sixteen of chapter two of 5 title twenty-eight of this code, or work funded by the department pursu- 6 ant to article [seven-a] seven-A of the [New York state] real property 7 actions and proceedings law. 8 § 9. Subdivision 18 of section 654-d of the private housing finance 9 law, as amended by chapter 703 of the laws of 1992, is amended to read 10 as follows: 11 18. Rentals. Notwithstanding the provisions of, or any regulation 12 promulgated pursuant to, the emergency housing rent control law, the 13 local emergency housing rent control act or local law enacted pursuant 14 thereto, all dwelling units in a multiple dwelling the rehabilitation of 15 which commenced after July first, nineteen hundred seventy-seven and 16 which is financed by a mortgage loan insured by the subsidiary corpo- 17 ration (including, but not limited to, mortgage loans insured pursuant 18 to mortgage insurance contracts and housing insurance contracts), except 19 for dwelling units occupied by reason of ownership of stock in a cooper- 20 ative and except for dwelling units that constitute condominiums, shall 21 be subject to the rent stabilization law of nineteen hundred sixty-nine, 22 beginning immediately after initial rents, as established under applica- 23 ble provisions of this chapter, [section four hundred twenty-one-a of 24 the real property tax law,] section four hundred eighty-nine of the real 25 property tax law and/or subparagraph (m) of paragraph one of subdivision 26 g of section 26-405 of the administrative code of the city of New York 27 for such dwelling units to become effective on the basis of such reha- 28 bilitation, provided that any occupant in possession of a dwelling unit 29 that first becomes subject to the rent stabilization law of nineteen 30 hundred sixty-nine pursuant to this section shall be offered a two-year 31 lease notwithstanding any contrary provisions of, or regulations adopted 32 pursuant to, such rent stabilization law, at the initial rent estab- 33 lished for such dwelling unit and provided further that such dwelling 34 units, other than those dwelling units, the initial rents of which are 35 established under subparagraph (m) of paragraph one of subdivision g of 36 section 26-405 of the administrative code of the city of New York, shall 37 remain subject to the rent stabilization law in accordance with the 38 provisions of this chapter[, section four hundred twenty-one-a of the 39 real property tax law] and/or section four hundred eighty-nine of the 40 real property tax law as the case may be. Except to the extent to which 41 dwelling units, which are controlled under other provisions of law, 42 become subject to the rent stabilization law of nineteen hundred sixty- 43 nine pursuant to the preceding sentence, no dwelling unit shall become 44 subject to the rent stabilization law solely by reason of insurance of a 45 mortgage loan by the subsidiary corporation. 46 § 10. Subdivision 6 of section 421-m of the real property tax law, as 47 added by section 43 of part B of chapter 97 of the laws of 2011, is 48 amended to read as follows: 49 6. The exemption authorized by this section shall not be available in 50 a jurisdiction to which the provisions of section [four hundred twenty- 51 one-a or] four hundred twenty-one-c of this article are applicable. 52 § 11. Subdivision 1 of section 467-e of the real property tax law, as 53 amended by chapter 483 of the laws of 2007, is amended to read as 54 follows: 55 1. Generally. Notwithstanding any provision of any general, special or 56 local law to the contrary, any city having a population of one million
S. 216 4 1 or more is hereby authorized and empowered to adopt and amend local laws 2 in accordance with this section to grant a rebate of real property taxes 3 for fiscal years beginning on the first of July, two thousand three and 4 ending on the thirtieth of June, two thousand nine in the amount of the 5 lesser of four hundred dollars or the annual tax liability imposed on 6 the property. No such local law may be adopted unless, as originally 7 adopted, it authorizes such rebate to be granted in accordance with this 8 section for three consecutive fiscal years beginning with the fiscal 9 year beginning on the first of July, two thousand three. No such rebate 10 shall be granted by local law for any fiscal year beginning on or after 11 the first of July, two thousand nine, unless the council of such city, 12 in fixing the annual tax rates for any such fiscal year, shall have 13 uniformly reduced such rates for all classes of property in order to 14 produce real property tax relief among such classes of property in an 15 amount not less than, in the aggregate, the aggregate amount of rebate 16 paid in such fiscal year. No such local law implementing the provisions 17 of this section, as amended by [the] chapter four hundred eighty-three 18 of the laws of two thousand seven [which added this sentence], may be 19 adopted unless, as originally adopted, such local law authorizes such 20 rebate to be granted in accordance with this section for three consec- 21 utive fiscal years beginning with the fiscal year beginning on the first 22 of July, two thousand six. Any rebate authorized by local law in accord- 23 ance with this section shall be paid in the fiscal year following the 24 fiscal year for which the rebate is granted. If, with respect to the 25 fiscal year of such city beginning on the first of July, two thousand 26 eight and ending on the thirtieth of June, two thousand nine, an 27 increase in average real property tax rates would otherwise be necessary 28 in the resolution of such city council fixing real property tax rates 29 for such fiscal year pursuant to the charter of such city, then the 30 rebate to be paid for such fiscal year shall be reduced or eliminated as 31 follows: where the sum to be raised by such increase is less than seven 32 hundred fifty million dollars, then such rebate shall be reduced by 33 fifty cents for each dollar of increase, and where the sum to be raised 34 by such increase is seven hundred fifty million dollars or more, then 35 such rebate shall be eliminated. The determination of the reduction or 36 elimination of such rebate shall be set forth in such resolution after 37 consultation with the department of finance of such city and shall take 38 effect upon the final adoption of such resolution. Such rebate shall be 39 paid to an owner or tenant-stockholder who, as of the date the applica- 40 tion provided for in subdivision four of this section is due, owns a 41 one, two or three family residence or a dwelling unit in residential 42 property held in the condominium or cooperative form of ownership that 43 is the owner or tenant-stockholder's primary residence and meets all 44 other eligibility requirements of this section. Notwithstanding 45 anything to the contrary in sections [four hundred twenty-one-a,] four 46 hundred twenty-one-b or four hundred twenty-one-g of this title, an 47 owner or tenant-stockholder whose property is receiving benefits pursu- 48 ant to such sections shall not be prohibited from receiving a rebate 49 pursuant to this section if such owner or tenant-stockholder is other- 50 wise eligible to receive such rebate. Tenant-stockholders of dwelling 51 units in a cooperative apartment corporation incorporated as a mutual 52 company pursuant to article two, four, five or eleven of the private 53 housing finance law shall not be entitled to the rebate authorized by 54 this section. Such rebate shall be paid by the commissioner of finance 55 to eligible owners or tenant-stockholders in accordance with rules 56 promulgated by the commissioner of finance.
S. 216 5 1 § 12. Paragraph (b) of subdivision 1-a of section 489 of the real 2 property tax law, as added by chapter 450 of the laws of 2003, is 3 amended to read as follows: 4 (b) for tax lots in the city of New York now existing or hereafter 5 created within the following area in the borough of Manhattan, such 6 conversions, alterations or improvements are aided by a grant, loan or 7 subsidy from any federal, state or local agency or instrumentality: 8 beginning at the intersection of the United States pierhead line in the 9 Hudson river and the center line of Chambers street extended, thence 10 easterly to the center line of Chambers street and continuing along the 11 center line of Chambers street to the center line of Centre street, 12 thence southerly along the center line of Centre street to the center 13 line of the Brooklyn Bridge to the intersection of the Brooklyn Bridge 14 and the United States pierhead line in the East river, thence northerly 15 along the United States pierhead line in the East river to the inter- 16 section of the United States pierhead line in the East river and the 17 center line of One Hundred Tenth street extended, thence westerly to the 18 center line of One Hundred Tenth street and continuing along the center 19 line of One Hundred Tenth street to its westerly terminus, thence 20 westerly to the intersection of the center line of One Hundred Tenth 21 street extended and the United States pierhead line in the Hudson river, 22 thence southerly along the United States pierhead line in the Hudson 23 river to the point of beginning. For purposes of this subdivision, 24 "floor area" shall [have the same meaning as in paragraph b of subdivi- 25 sion one of section four hundred twenty-one-a of this title] mean the 26 horizontal areas of the several floors or any portion thereof of a 27 dwelling or dwellings and accessory structures on a lot measured from 28 the exterior faces of exterior walls or from the center line of party 29 walls. Nothing in this subdivision shall be construed to provide bene- 30 fits pursuant to subdivision two of this section for the costs attribut- 31 able to the increased cubic content in any such building or structure. 32 § 13. This act shall take effect immediately.