Extends until June 1, 2013, the deadline for local legislative action providing tax incentives for the rehabilitation or improvement of multiple dwellings

BILL NUMBER:S7648

Title of bill

An act to amend the real property tax law, in relation to exemption from taxation of alterations and improvements to multiple dwellings

Purpose

To extend the J-51 program of tax abatements for the renovation and upgrading of multiple dwellings.

Summary

This bill extends Section 489 of the Real property Tax law known as the City of New York as the J-51 program. It would extend retroactively, from June 1, 2011 until June 1, 2013, the deadline for local legislative action providing tax incentives for the rehabilitation and upgrading of multiple dwellings. Currently the law also provides that in order to be eligible to receive J-51 benefits, a development must have been completed prior to December 31, 2011. This amendment would authorize the local legislative body to extend that date until December 31, 2013.

Justification

The continuing shortage of affordable housing in the City of New York requires the extension of tax exemption programs that serve as an incen- tive to owners to maintain and upgrade existing multiple dwellings. J-51 benefits apply to a variety of improvements including, but not limited to, the installation or replacement of heating systems, plumbing, wiring, elevators, windows and a range of other major capital improve- ments. The program also grants tax benefits to owners of non-residential buildings who convert their buildings to residential use. The program issues 14 or 34 year exemptions from taxes on any increase in assessed valuation resulting from those alterations certified by the City's Department of Housing Preservation and Development ("HPD") and an abate- ment of property taxes of construction costs as certified by HPD.

The J-51 program has been primarily responsible for the rehabilitation and upgrading of New York City's housing stock since 1955. It has also been essential in ensuring that affordable housing will continue to be available to the residents of New York City.

Legislative history

This is a new bill.

Fiscal implications

None to the state.

Effective date

Immediately, and retroactively to the date of the expiration of the authority for the City to enact J-51 legislation, June 1, 2011.