Establishes a residential incentive board; provides flexibility to local taxing jurisdictions for residential property capital improvements for environmental problem

Summary of specific provisions

The bill adds a new subdivision - 7-a - to Section 421-f of the Real Property Tax Law. The provision within 7-a would authorize local taxing jurisdictions to establish a residential incentive board (RIB). The RIB would be responsible for determining eligibility requirements and exemption limits for capital improvements for residential property that has been damaged and/or in need of improvements due to an environmental condition. It will be the responsi- bility of the RIB to determine what environmental conditions and what geographical area(s) are eligible for the exemption as well as to deter- mine the duration of the exemption, the allowable exemption percentage and the maximum assessment abatement, not to exceed five hundred thou- sand dollars.

In order to enact the recommendations of the RIB, the local taxing jurisdiction (to include school districts) must adopt a local law/resolution.

Justification

This legislation would assist homeowners whose homes have been damaged by environmental conditions and would provide a mech- anism by which to encourage the repair of their homes resulting in a revitalization in these communities. Below are two separate instances where, if enacted, this legislation could provide a practical incentive to encourage property owners to repair and/or make necessary improve- ments to address environmental conditions that have damaged their homes, they are: Suffolk County: In 1994, thirty-three residential homes were built on Bishop Lane in Holbrook as the second phase of a development project. These homes were constructed with their cellar/basement floors located within close proximately to the regional water table elevation, and as a result, are prone to groundwater infiltration. In, 1998, the region received above average precipitation that resulted in elevated water table conditions. Many residents experienced basement flooding and reportedly installed sump-pumps to address the water invasion. Since October of 2005, residents on Bishop Lane have consistently experienced problems associated with the increase in annual rainfall that has resulted in an elevated water table. The wet and damp basements are not only seen as an inconvenience, but also a health problem. This condition has significantly impacted the quality of life for these homeowners as well as reduced the overall value of their homes.

Erie County: Residents in certain areas of the Town of Amherst have suffered major structural damage to their homes caused by soil subsi- dence. In some cases, the cost of repairs approaches the value of the house, and many homes face repairs that are far more costly than home- owners would ordinarily expect to pay for regular maintenance. Assess- ments on many of these homes have been reduced, reflecting the reduction in value caused by these damages.

Extending the exemption to provide the locality greater flexibility in a capital improvement exemption will allow localities such as Holbrook and Amherst to protect its real property tax base and would encourage the necessary repair of homes, while offering real property tax relief to homeowners who have suffered significant damage to their homes due to unforeseen environmental conditions.

Prior legislative history

A9418 of 2007

Fiscal implications

None to the State

Effective date

Immediately