Relates to tax exemptions for new multiple dwellings

SUMMARY OF PROVISIONS:; PART A: 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, 2022. 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; (c) changes a section reference to reflect renumbering in the New York City Zoning Resolution; (d) requires that projects receiving 421-a tax benefits with 150 units or more must operate through a Private Labor Agreement for any new construction in Manhattan commenced after November 1, 2012.

Part b

Extends until June 15, 2023, the various provisions of law relating to rent regulations.

Part c

Amends the administrative code of the city of New York and the emergency tenant protection act of nineteen seventy-four, to provide that for the purpose of determining primary residence of a rent regulated apartment, the failure to file a tax return or casting of a vote in an election district other than the one designated for that apartment shall result in a determination that the tenant does not occupy the apartment as their primary

residence. Provides that an owner may challenge the primary residence status of the tenant at any time during the tenant's lease.

Justification

PART A: 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. Such benefits are available for up to 2S 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 proposed legislation eliminates the duplicative requirement that applicants for 421-a benefits file a separate application with the City of New York's Department of Finance. Further, it authorizes the local housing agency 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 more expeditiously and offer improved access to technical assistance as to the to the eligibility criteria for such benefits. Lastly, it requires that projects receiving 421~a tax benefits with 150 units or more must operate through a Private Labor Agreement for any new construction in Manhattan commenced after November 1, 2012.

Part b

Protects the tenants and owners of rent regulated buildings in New York State by extending the rent laws for twelve years.

Part c

Expanding the method by which primary residency can be established, ensures that housing accommodations that are subject to rent regulation are only available to tenants who reside in those apartments.

Furthermore, since the ruling of the Court of Appeals in the case of Golub v. Frank, 65 NY2d 900 (1985)/ owners are authorized to commence primary residence challenges only during the lease renewal period between 90 and 150 days prior to the expiration of a rent stabilized lease. Limiting such challenges to that time period needlessly confers added protections and benefits to those tenants who do not primarily reside at the regulated accommodations. It is sound public policy to enable property owners to commence these proceedings at any time during a tenant's lease.

Prior legislative history

New Legislation.

Fiscal implications for state and local governments

None.

Effective date

This bill takes effect immediately.