What's happening
This bill exempts certain pre-August 19, 2016 property transfers involving housing development fund companies from real property transfer tax.
Why it matters
Retroactive tax relief for housing development fund companies. By exempting qualifying property transfers made before August 19, 2016, the bill provides financial relief for entities involved in affordable housing, potentially freeing up resources for further development or maintenance.
Correction of a legislative gap. The amendment addresses a loophole left by the 2016 law, ensuring that earlier transactions are treated with the same tax exemptions as those occurring after the law was enacted, which could prevent unfair tax liabilities for past deals.
Encouragement and stability for affordable housing projects. By clarifying and extending exemptions, the bill gives greater certainty and stability to organizations that develop or support low-income housing, possibly encouraging continued investment in affordable housing initiatives.
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Who cares
Headline styles
Exempt Some Property Transfers Tax
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to cities
- Recommitted to rules
- Ordered to third reading cal.2226
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6711
2017-2018 Regular Sessions
IN SENATE
June 14, 2017
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the administrative code of the city of New York, in relation to the taxation of the transfer of real property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 9 of subdivision b of section 11-2106 of the administrative code of the city of New York, as added by chapter 264 of the laws of 2016, is amended to read as follows:
9. A deed, instrument or transaction conveying or transferring real property or an economic interest therein by or to any housing development fund company organized pursuant to article eleven of the private housing finance law or to an entity, the controlling interest of which is held by such a company, if at the time of such conveyance or transfer, such real property is subject to, or simultaneously with such conveyance or transfer is made subject to, a regulatory agreement with the state of New York, a municipal corporation or any other public corporation created by or pursuant to any law of the state of New York that: encumbers the real property for thirty years or more, requires mutual consent for revocation or amendment, restricts more than fifty percent of the floor area, other than common areas, to residential real property, and restricts at least sixty-six and two-thirds percent of such residential real property to purchase, lease, license or other use by persons of low income and families of low income within the meaning of section two of the private housing finance law; provided, however, that if such regulatory agreement restricts less than one hundred percent of the floor area, other than common areas, to purchase, lease, license or other use by persons of low income and families of low income within the meaning of section two of the private housing finance law, the tax shall apply to the consideration less the product of the consideration and a fraction, the numerator of which is the floor area that
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13207-01-7
S. 6711 2
such regulatory agreement restricts to purchase, lease, license or other use by persons of low income and families of low income within the meaning of section two of the private housing finance law and the denominator of which is the entire floor area, minus the floor area of common areas; provided further, that if such real property is made subject to a regulatory agreement that meets the terms of this paragraph within two years of the conveyance or transfer then the commissioner of finance may issue a refund based on the application of this paragraph pursuant to the provisions of section 11-2108 of this chapter, treating the transfer or conveyance as if such real property were subject to such regulatory agreement as of the date of such transfer or conveyance, if, notwithstanding any other time limitation set forth in section 11-2108 of this chapter, application to the commissioner of finance for such refund is made within twelve months of the effective date of such regulatory agreement. Notwithstanding any provision of this paragraph to the contrary, any deed, instrument or transaction conveying or transferring real property or an economic interest therein by or to any housing development fund company organized pursuant to article eleven of the private housing finance law or to an entity, the controlling interest of which is held by such a company, made prior to August nineteen, two thousand sixteen shall be exempt pursuant to paragraph two of this subdivision.
§ 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on the same date and in the same manner as chapter 264 of the laws of 2016.
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, in relation to the taxation of the transfer of real property
Purpose or general idea of bill
To clarify the applicability of the exemption from the real property transfer tax established by Chapter 264 of the Laws of 2016 for affordable housing development fund company property transferred prior to the effective date of Chapter 264.
Summary of provisions
Section one of the bill would amend Section 11-2106 of the Administrative Code of the City of New York to provide that any deed, instrument or transaction conveying or transferring real property or an economic interest therein by or to any housing development fund company organized pursuant to Article 11 of the Private Housing Finance Law or to an entity, the controlling interest of which is held by such a company, made prior to August 19, 2016 shall be exempt pursuant to paragraph two of subdivision b of section 11-2106 of this chapter.
Section 2 of the bill to provide that this act shall take effect on the same date and in the same manner as Chapter 264 of the law of 2016.
Justification
The original intent of the transfer tax exemption for affordable housing company property established by Chapter 264 of the Laws of 2016 was to exempt such property retroactive to January 1, 2010. After the bill became law in August 2016, the New York City Finance Department has subsequently told affordable housing developers that the 2016 amendment does not provide the exemption from the transfer tax as was agreed upon and intended. For that reason, a clarification of the 2016 law to make it clear that the transfer tax exemption applies to affordable housing project deals subject to the 2016 law is necessary.
Prior legislative history
See Chapter 264 of the Laws of 2016.
Fiscal implications
Undetermined
Effective date
This act shall take effect on the same date and in the same manner as Chapter 264 of the law of 2016.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.