Expands and extends the duration of the green roof real property tax abatement in a city having a population of one million or more

Section 1 of the bill amends the definition of the term "green roof' to allow for the inclusion of a controlled flow roof drain, and to add native and agricultural plant species to the list of "live plants" that can be used to meet the requirement that 80% of the vegetation layer of a green roof must be covered by live plants.

Section 2 of the bill provides that beginning with tax years (i.e., City fiscal years) commencing on or after July 1, 2014 and ending on or before June 30, 2019, the tax abatement shall be $5.23 per square foot of a green roof (an increase from $4.50 per square foot of a green roof), provided that the amount of the abatement does not exceed the lesser of $200,000 (an increase from $100,000) or the tax liability of the eligible building in the tax year in which the abatement is taken. This section also establishes an overall cap on the amount that would be spent in any one year on the abatement program ($750,000 in City fiscal year 2015 and $1,000,000 in City fiscal years 2016, 2017, 2018, 2019). The aggregate amount of abatements would be allocated by the New York City Department of Finance among eligible applicants on a pro rata basis.

Section 3 of the bill extends the application deadline from March 15, 2013 to March 15, 2018.

Section 4 of the bill provides that the bill takes effect immediately.

Reasons for support

The green roof tax abatement incentive is part of a larger comprehensive green infrastructure program in the City to capture the first inch of rainfall on 10% of the impervious areas in combined sewer watersheds through detention or infiltration techniques. However, due to the multiple sustainability benefits associated with green roofs, the green roof tax abatement is applicable citywide in both combined and separate storm sewer areas.

Green roofs provide considerable benefits to New York City, but the expense of installation remains prohibitive to building and homeowners. This proposal would continue, with some modifications, the previous abatement, which was intended to offset some of the costs associated with green roof installation. The property tax abatement program would be extended for five years. As part of this extension, the definition of a green roof would be amended to authorize the use of native and/or agricultural plant species. Over the past five years, interest in rooftop farms (i.e., green roofs with native and/or agricultural plant species) has increased significantly in New York City. In addition to creating areas for stormwater retention, rooftop farms have the added benefit of providing affordable and local produce to New York City residents, another goal of Mayor Bloomberg's P1aNYC. To address green roofs with a growth medium of less than three inches

(i.e., more typical green roofs without agricultural plant species), the option of a controlled flow roof drain would be included as an additional water holding layer, consistent with DEP's Stormwater Performance Standard and Guidelines for the Design and Construction of Stormwater Management Systems. Controlled flow roof drain systems provide temporary ponding on a rooftop surface and slowly release the ponded water through roof drains.

In addition to the above modifications to the definition of a green roof, a nominal increase in the value of the abatement would be implemented, from $4.50 per square foot of green roof to $5.23 per square foot of green roof. This adjusted value would reflect 2012 Producer Price Index market cost for commercial roof contractors and thus would continue to incentivize green roofs by offsetting construction costs by roughly the same value as the original tax abatement. Given that rooftop farms tend to be larger than typical green roofs (generally around one acre in size), the abatement value cap would also be increased.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.