Relates to tax exemptions for new multiple dwellings

1 Co-sponsor

• Andrew J. Lanza

BILL NUMBER:S5438

Title of bill

An act to amend the real property tax law, in relation to tax exemption 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) eliminates the requirement that a separate application be filed with the assessors; (b) authorizes cities with a population of one million or more to require the electronic filing of applications; and (c) changes a section refer- ence to reflect renumbering in the New York City Zoning Resolution.

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 25 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 shor- tage 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 in the outer boroughs. The proposed legislation would 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 eliminates the requirement that applicants 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. Second, it authorizes the local housing agency in a city of one million or more to require applications for exemption that are filed on or after the effective date of the legislation to be filed electronically. Electronically-filed applications can be processed far more expeditiously than paper applications and grant easy access to technical assistance as to the eligibility criteria for such benefits.

Accordingly, the Mayor urges the earliest possible favorable consider- ation of this proposal by the Legislature.