Relates to authorizing a residential redevelopment inhibited property exemption

4 Co-sponsors

• Fredrick J. Akshar II
• Thomas Croci
• Susan Serino
• James L. Seward

Title of bill

An act to amend the real property tax law, in relation to authorizing a residential redevelopment inhibited property exemption

Purpose or general idea of bill

To authorize municipalities to institute a property tax exemption on the increased assessment associated with the repair and redevelopment of certain dilapidated residential properties to the extent that the assessment would appreciate as a result of the repair and redevelopment.

Summary of specific provisions

Section 1 - amends Real Property Tax Law section 485-r to delete the reference to certain cities and makes the section applicable to any municipality. The section further defines "municipality" to mean any city, town or village.

Section 2- provides that the act shall take effect immediately.

Justification

In 2015, the Governor signed Chapter 406, which allowed certain municipalities to implement, at its option, a new method of encouraging redevelopment of dilapidated housing in the city. The city that fit the specific description, the City of Batavia in Genesee County, is faced with a large number of single family homes that are dilapidated and in need of extensive and costly repairs. These costs can exceed the value of the home when complete, and as a result, they sit unused. These homes reduce the values of the houses that surround them and their neighborhoods in general, and this bill will provide needed incentive to make necessary redevelopment occur.

The scenario faced by the City of Batavia is far from unique. In fact, cities, towns and villages across the state face this same problem. This bill will extend the same option to other municipalities who are struggling to redevelop blighted residential areas where the cost of purchase and renovation will exceed the value of the homes when complete. It is in everyone's interest to improve these areas. There is no actual cost for these incentives, since without them the properties will continue to languish with low values or off the tax rolls entirely, and surrounding values will continue to be depressed. More importantly, these neighborhoods will provide a better place for its residents to live. Inhibited Property Tax Exemptions

Prior legislative history

2015 -- S5196-A /A.7570-A- CH.406

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately.