What's happening
This bill raises the assessed value threshold and extends eligibility for J-51 tax abatements in New York City, reflecting cost of living adjustments.
Why it matters
Raises the per-dwelling assessed value cap for J-51 eligibility from $30,000 or $35,000 to $50,000. , making more properties—especially in higher-cost neighborhoods—eligible for renovation tax abatements, which could spur additional investment in aging housing stock.
Extends the J-51 program's expiration date for new applications from 2019 to 2022. , ensuring continuity of the incentive and avoiding a potential gap in support for housing upgrades, which is important for property owners planning large-scale improvements.
Adjusts the eligibility thresholds to reflect increased real estate values and cost of living. , which helps maintain the program’s relevance and reach for current market conditions, potentially benefiting middle-income cooperative and condominium owners who may have previously been excluded.
Facilitates more building-wide system upgrades and substantial rehabilitations by broadening access to abatements. , likely resulting in improved living conditions, building energy efficiency, and long-term housing quality for residents in eligible developments.
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Headline styles
Raise Assessed Value Limit
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Committed to rules
- Amended on third reading (t) 1487a
- Advanced to third reading
- 2nd report cal.
- 1st report cal.264
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to real property taxation
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
Show 3 earlier actions
- 2nd report cal.
- 1st report cal.226
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Raise Assessed Value Limit
In Assembly Committee · Real Property Taxation · Sponsor Edward Braunstein
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1487--A Cal. No. 264
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
Introduced by Sens. AVELLA, KLEIN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -recommitted to the Committee on Local Government in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the administrative code of the city of New York and the real property tax law, in relation to increasing the average assessed value threshold; and to amend the real property tax law, in relation to the eligibility for J-51 tax abatements to reflect cost of living adjustments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (ii) of paragraph 3 of subdivision d of section 11-243 of the administrative code of the city of New York, as amended by local law number 49 of the city of New York for the year 1993, is amended to read as follows:
(ii) is owned as a condominium and is occupied as the residence or home of three or more families living independently of each other; provided, however, that, in addition to all other conditions of eligibility for the benefits of this section, except for multiple dwellings in which units have been newly created by substantial rehabilitation of vacant buildings or conversions of non-residential buildings, the availability of benefits under this section for such multiple dwellings, buildings or structures shall be conditioned on the following: (a) alterations or improvements to at least one building-wide system are part of the application for benefits, and (b) (i) the assessed valuation of such multiple dwelling, building, or structure, including land, shall not exceed an average of [thirty] fifty thousand dollars per dwelling unit at the time of the commencement of the alterations or improvements,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07089-04-8
S. 1487--A 2
and (ii) during the three years immediately preceding the commencement of the alterations or improvements the average per room sale price of the dwelling units or the stock allocated to such dwelling units shall have been no greater than thirty-five percent of the maximum mortgage amount for a single family home eligible for purchase by the Federal National Mortgage Association; provided that if less than ten percent of the dwelling units or an amount of stock less than the amount allocable to ten percent of such dwelling units was not transferred during such preceding three year period, eligibility for benefits shall be conditioned upon the multiple dwelling, building, or structure having an assessed valuation per dwelling unit of no more than twenty-five thousand dollars at the time of the commencement of the alterations or improvements. Provided, further, that such benefits shall be available only for alterations or improvements commenced on or after June first, nineteen hundred eighty-six.
§ 2. The opening paragraph of paragraph (a) of subdivision 1 of section 489 of the real property tax law, as amended by section 19 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
Any city to which the multiple dwelling law is applicable, acting through its local legislative body or other governing agency, is hereby authorized and empowered, to and including January first, two thousand [nineteen] twenty-two, to adopt and amend local laws or ordinances providing that any increase in assessed valuation of real property shall be exempt from taxation for local purposes, as provided herein, to the extent such increase results from:
§ 3. The closing paragraph of subparagraph 6 of paragraph (a) of subdivision 1 of section 489 of the real property tax law, as amended by section 20 of part A of chapter 20 of the laws of 2015, is amended to read as follows:
Such conversion, alterations or improvements shall be completed within thirty months after the date on which same shall be started except that such thirty month limitation shall not apply to conversions of residential units which are registered with the loft board in accordance with article seven-C of the multiple dwelling law pursuant to subparagraph one of this paragraph. Notwithstanding the foregoing, a sixty month period for completion shall be available for alterations or improvements undertaken by a housing development fund company organized pursuant to article eleven of the private housing finance law, which are carried out with the substantial assistance of grants, loans or subsidies from any federal, state or local governmental agency or instrumentality or which are carried out in a property transferred from such city if alterations and improvements are completed within seven years after the date of transfer. In addition, the local housing agency is hereby empowered to grant an extension of the period of completion for any project carried out with the substantial assistance of grants, loans or subsidies from any federal, state or local governmental agency or instrumentality, if such alterations or improvements are completed within sixty months from commencement of construction. Provided, further, that such conversion, alterations or improvements shall in any event be completed prior to June thirtieth, two thousand [nineteen] twenty-two. Exemption for conversions, alterations or improvements pursuant to subparagraph one, two, three or four of this paragraph shall continue for a period not to exceed fourteen years and begin no sooner than the first quarterly tax bill immediately following the completion of such conversion, alterations or improvements. Exemption for alterations or improvements pursuant to this subparagraph or subparagraph five of this paragraph shall
S. 1487--A 3
continue for a period not to exceed thirty-four years and shall begin no sooner than the first quarterly tax bill immediately following the completion of such alterations or improvements. Such exemption shall be equal to the increase in the valuation which is subject to exemption in full or proportionally under this subdivision for ten or thirty years, whichever is applicable. After such period of time, the amount of such exempted assessed valuation of such improvements shall be reduced by twenty percent in each succeeding year until the assessed value of the improvements are fully taxable. Provided, however, exemption for any conversion, alterations or improvements which are aided by a loan or grant under article eight, eight-A, eleven, twelve, fifteen or twentytwo of the private housing finance law, section six hundred ninety-six-a or section ninety-nine-h of the general municipal law, or section three hundred twelve of the housing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the Cranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et. seq.), or started after July first, nineteen hundred eighty-three by a housing development fund company organized pursuant to article eleven of the private housing finance law which are carried out with the substantial assistance of grants, loans or subsidies from any federal, state or local governmental agency or instrumentality or which are carried out in a property transferred from any city and where alterations and improvements are completed within seven years after the date of transfer may commence at the beginning of any tax quarter subsequent to the start of such conversion, alterations or improvements and prior to the completion of such conversion, alterations or improvements.
§ 4. Subparagraph (iv) of paragraph (c) of subdivision 17 of section 489 of the real property tax law, as added by chapter 388 of the laws of 2016, is amended to read as follows:
(iv) Notwithstanding anything to the contrary contained herein, the assessed value limitation shall not at any time exceed [thirty-five] fifty thousand dollars.
§ 5. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York and the real property tax law, in relation to increasing the average assessed value threshold; and to amend the real property tax law, in relation to the eligibility for J-51 tax abatements to reflect cost of living adjustments
Purpose
To adjust the J-51 tax abatement minimum assessed property value eligi- bility to reflect yearly changes in cost of living.
Summary of provisions
Section 1 amends subparagraph (ii) of paragraph 3 of subdivision d of
Section 11-243 of the administrative code of the city of New York to change the average per dwelling from thirty to fifty thousand dollars.
Section 2 amends the opening paragraph of paragraph (a) of subdivision 1 of section 489 of the Real Property Tax Law to extend the authorization of the J-51 program to two thousand twenty-two.
Section 3 amends the closing paragraph of subparagraph 6 of paragraph (a) of subdivision 1 of section 489 of the Real Property Tax Law to state that all alterations or improvements must be completed prior to June thirtieth, two thousand twenty-two.
Section 4 amends subparagraph (iv) of paragraph (c) of Subdivision 17 of Section 489 of the Real Property Tax Law, as amended by Chapter 388 of the laws of 2016 to read "notwithstanding anything to the contrary contained herein, the assessed value limitation shall not at any time exceed fifty thousand dollars."
Section 5 contains the effective date.
Justification
The J-51 tax abatement is a property tax exemption and abatement received by buildings for renovating a residential apartment building. Since 1992, co-op units and condos that had an assessed value less than $40,000 were eligible to receive this abatement.
However, in 2013, the eligibility cap was reduced to units that have an assessed value of less than $30,000. As a result of this change, fewer middle-income co-ops and condo owners were eligible for these abatements until Chapter 388 of 2016 provided for cost-of-living adjustments and a new limitation of $35,000.
This bill would amend the program to increase the applicable assessed value limitation from $35,000 to $50,000. The abatement cap would be continue to be indexed for inflation and will consistently accommodate middle-income co-op and condo owners.
Legislative history
2013-2014: A.8566/ S.6362 - Referred to Real Property Taxation. 2015-2016: A.579-B/S.1125-B - Amend and recommit to Real Property Taxa- tion.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.