What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Clarifies the exemption for cooperative housing corporations where there is no change in beneficial ownership
In Assembly Committee · Ways And Means · Sponsor Alec Brook-Krasny
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2566
Title of bill
An act to amend the tax law, in relation to clarifying the exemption for cooperative housing corporations where there is no change in beneficial ownership
Purpose
This bill would clarify the exemption in the tax law for cooperative housing corporations when there is no change in beneficial ownership.
Justification
The intent of the Mitchell-Lama, when enacted, was to create much needed affordable housing through the use of low interest loans and reduced real estate taxes for fixed periods in order to create needed housing. Once a cooperative had repaid its government loans, it would cease to be a regulated cooperative and become standard cooperative. The law intended for coops to evolve out of regulation.
Over the last several years, a number of cooperatives have met their obligations, and have exited the Mitchell-Lama program. This process includes approval of both the NYS Division of Housing and Community Renewal and the New York State Attorney's General's office. The Mitchell-Lama program is seen as one of the most cost-effective and successful housing programs ever created.
Following the issuance of an advisory opinion in 2008, the NYS Department of Taxation and Finance has opened audits of the many former Mitchell-Lama buildings that have come out of the program in recent years, and concluded that in a number of cases State tax was due as a result of this conversion. This increase in audit activity prompted additional examination by the Department on this retroactive application of the tax. In April 2010, they issued an advisory opinion which concludes that the conversion of a not for profit housing company to a private cooperative housing corporation constitutes a conveyance by the plan sponsor of the real property comprising the cooperative dwelling, and would be subject to the real estate transfer tax. This advisory opinion provides limited guidance regarding the exemption provided if there is no change in the beneficial ownership.
This bill would clarify that for certain conversions, in which there is no change in the beneficial ownership of the property, would qualify for this exemption.
Legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.