Relates to establishing a property tax credit for class 2 cooperative and condominium buildings that are designated safe after a facade safety program inspection

BILL NUMBER:S4146 Revised 03/04/15

Title of bill

An act to amend the administrative code of the city of New York, in relation to establishing a property tax credit for class 2 cooperative and condominium buildings that are designated safe after a facade safety program inspection

Purpose or general idea of bill

To offer a property tax credit for class 2 co-op and condo buildings that are designated safe after a facade inspection safety program inspection.

Summary of specific provisions

Section 1. Adds a new section 11-242.1 to the administrative code of the city of New York to provide for an exemption for buildings designated safe by the facade inspection safety program (FISP).

Subdivision a provides that class two cooperative and/or condominium buildings that have been designated safe after a FISP are eligible for the exemption.

Subdivision b provides that the taxes of the eligible property shall be abated and reduced by an amount equal to the costs of the FISP inspection. Subdivision c provides that the abatements shall be reevaluated every five years after such inspection is performed, pursuant to Title 28, Article 302, Chapter 3 of the administrative code.

Section 2. Provides the effective date.

Justification

Local Law 11 of 1998 requires all buildings in New York City that are greater than six stories to have a Qualified Exterior Wall Inspector. ("QEWI") inspect all exterior walls and appurtences of the building. This inspection process, also known as the Facade Inspection and Safety Program ("FISP"), covers all of the exterior facades, including balconies, fire escapes, parapets, window casings, and railings of a building, and must be conducted every five years, regardless of the building's diligence in maintaining the exterior.

The results of a FISP inspection are deemed either: 1) Safe - which indicates that the facade has no problems and is in good condition; 2) Safe With a Repair and Maintenance Program - which indicates that the facade is safe, but requires repairs or maintenance; or 3) Unsafe which indicates that the facade has problems or defects that could pose a threat to public safety.

Because the inspections require the construction of scaffolding or observation platform, the services of QEWI's who must be licensed architects or engineers, and the drafting of a detailed technical report, the inspections can cost thousands of dollars or more. While the inspections are vital to the safety of residents and neighbors,

the costs of these inspections in class 2 cooperative and condominium buildings are generally passed on directly to the homeowners through increased maintenance fees or special assessments. These homeowners, whose facades are deemed Safe after the FISP inspection, should not have to bear the burden of the costly inspection process. As such, a tax abatement program to offset the costs of these inspections would be beneficial to the co-ops and condos subject to inspections under the program.

Prior legislative history

None.

Effective date

This act shall take effect immediately.