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- Referred to rules
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Sponsor's memo
BILL NUMBER:S8157
Title of bill
An act to amend the real property tax law, in relation to tax exemptions for new multiple dwellings
Summary of provisions
This bill amends Section 421-a of the Real Property Tax Law by extending the benefits thereof for projects commencing before December 28, 2010 to projects commencing before December 28, 2014. It also (a) amends the definition of commencement to mean the date that, pursuant to a permit approved by a department of buildings, (i) a new metal or concrete structure that shall perform a load bearing function is installed as part of a foundation, (ii) at least one fully driven pile or caisson is installed, or (iii) the actual construction, alteration or improvement of a pre-existing building or structure begins in a project that includes new residential construction and the concurrent conversion, alteration or improvement of a pre-existing building or structure; provided, however, that with respect to all of these options, the construction of such multiple dwelling is completed without undue delay, (b) eliminates the requirement that a separate application be filed with the assessors, (c) mandates the prescribed filing fees, and (d) changes a section reference to reflect renumbering in the New York City Zoning Resolution.
Read the full memo (607 words)
Reasons for support
Section 421-a of the Real property Tax Law has provided tax benefits for construction of new residential buildings in the City of New York since 1971. Section 421-a benefits are available for up to twenty-five years depending upon the location of the multiple dwelling. It provides a period of full exemption followed by a phase-out to full taxation. The continuing shortage of affordable housing in the City of New York necessitates the extension of this essential tax exemption program that serves as an incentive for the development of new housing,
The 421-a program has been primarily responsible for encouraging the construction of new housing in New York City since 1971. Since 1985, the 421-a program has also been responsible for generating affordable units both in Manhattan and 111 the outer boroughs. The proposed legislation will ensure that the 421-a program continues to fulfill this mission.
The proposed legislation also makes other changes to the 421-a program. First, it provides an amended definition of commencement of construction to more accurately reflect current standards and practices. Local law now requires the Issuance of permits pursuant to approved architectural, structural and plumbing plans in order for a project to be deemed to have been commenced. In practice, though, full permits based upon approved plumbing plans are not issued until much later 111 the construction process, The proposed legislation eliminates this requirement and recognizes that installation of a new metal or concrete structure that will perform a load bearing function pursuant to any approved permit meets the definition of commencement of construction. Additionally, under this definition, the installation of at least one fully driven pile or caisson pursuant to an approved
permit or actual start of work on the conversion, alteration or improvement of a pre-existing building or structure incorporated into the new multiple dwelling pursuant to an approved permit; also constitute the commencement of construction. In all instances, the construction must be completed without undue delay.
In addition, the proposed legislation eliminates the requirement that applications for 421-a benefits file a separate application with the City of New York's Department of Finance. This will streamline the application process and eliminate unnecessary paperwork. The proposed legislation also makes the current application fee provisions mandatory so that the local housing agency need not promulgate rules to implement them.
Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.
Effective date
Immediately.
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