Increases the average assessed valuation of certain multiple dwellings, buildings, or structures

1 Co-sponsor

• Jeffrey D. Klein

Title of bill

An act to amend the real property tax law and the administrative code of the city of New York, in relation to increasing the average assessed value threshold

Summary of provisions

Section 1 amends subparagraph (i) of paragraph (b) of subdivision 17 of section 489 of the real property tax law by increasing the co-op and condominiums average assessed value eligibility threshold for J-51 benefits from $30,000 to $50,000.

Section 2 amends subparagraph subparagraph (ii) of paragraph 3 of subdivision d of section 11-243 of the administrative code of the city of New York, by increasing the co-op and condominiums average assessed value eligibility threshold for J-51 benefits from $30,000 to $50,000.

Sections 3 and 4 amend the opening paragraph of paragraph (a) of subdivision 1 and the closing paragraph of subparagraph 6 of paragraph (a) of subdivision 1 of section 489 of the real property tax law to provide for a 5-year extension of the J-51 benefits program.

Section 5 provides for an immediate effective date.

Justification

As stated by the New York City Department of Finance, the J-51 benefit program is a tax incentive for the renovation of multiple unit residential buildings. This program has been very successful and has proved vital for cooperative (co-op) and condominium owners throughout the city of New York.

The vast majority of co-ops and condominiums in the city are the only source of real affordable housing available to everyday working New Yorkers. As a result, it is important that these forms of home ownership are preserved and supported so that the housing shortage already existing is not further exacerbated.

Expansion of the eligibility threshold for the J-51 program from $30,000 to $50,000 recognizes that many co-op and condominium owners cannot benefit from this necessary program with such a low threshold for aver- age assessed value. By making this small increase, it will allow the average owner to benefit from this program without providing a "give away" of tax dollars to owners of "high priced" or "luxury" coops and condominiums.

This bill also extends the program for a five year, rather a than two year period, which gives co-op and condominium owners a sense of stability and confidence in maintaining the affordability of their homes.

Prior legislative history

None

Fiscal implications for state and local governments

None known.

Effective date

This act shall take effect immediately.