What's happening
This bill requires new multiple dwellings seeking property tax exemptions to comply with minority and women-owned business participation goals.
Why it matters
Expands accountability for tax breaks. By tying property tax exemptions for new multiple dwellings to compliance with minority and women-owned business participation goals, the bill ensures that public incentives are linked to broader social and economic equity objectives, not just housing creation.
Strengthens MWBE (Minority/Women-Owned Business Enterprise) laws in real estate development. Developers must now prove they met, or received a waiver for, MWBE participation requirements under Executive Law sections 312 and 313, making these standards more enforceable within the context of large housing projects.
Changes the application and certification process. Local housing agencies cannot certify a developer’s eligibility for property tax exemptions unless the developer demonstrates full compliance with MWBE participation rules—potentially increasing administrative oversight and documentation requirements.
May influence contractor and supplier diversity. By making tax exemption eligibility conditional on MWBE participation, the law gives developers a strong incentive to include minority and women-owned businesses in their construction and procurement processes, which could increase opportunities for these businesses in the real estate sector.
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Who cares
Headline styles
Tie Tax Breaks to Diversity
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to real property taxation
- Referred to real property taxation
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.
Tie Tax Breaks to MWBE
In Senate Committee · Housing, Construction And Community Development · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2168
2019-2020 Regular Sessions
IN ASSEMBLY
January 22, 2019
Introduced by M. of A. BICHOTTE, SEAWRIGHT, SOLAGES, MOSLEY, WALKER, GOTTFRIED, HYNDMAN, COOK, BLAKE, WRIGHT, JEAN-PIERRE, DAVILA -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to a minority and women-owned business enterprise participation goal requirement in order to receive exemption of new multiple dwellings from local taxation for the purpose of fixing economic disparity
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 421-a of the real property tax law is amended by adding a new closing paragraph to read as follows:
Any new multiple dwelling otherwise eligible for an exemption from taxation under this section must also be in compliance with the goals for minority and women-owned business enterprise participation pursuant to sections three hundred twelve and three hundred thirteen of the executive law. Nothing in this section shall supersede an applicant's ability to use a waiver as prescribed by such sections.
§ 2. The opening paragraph of paragraph a of subdivision 3 of section 421-a of the real property tax law, as amended by section 63-g of part A of chapter 20 of the laws of 2015, is amended to read as follows:
Application forms for exemption under this section shall be filed with the assessors between February first and March fifteenth and, based on the certification of the local housing agency as herein provided, the assessors shall certify to the collecting officer the amount of taxes to be abated. If there be in a city of one million population or more a department of housing preservation and development, the term "housing agency" shall mean only such department of housing preservation and development. No such application shall be accepted by the assessors unless accompanied by a certificate of the local housing agency certifying the applicant's eligibility pursuant to subdivisions two and four of this section. No such certification of eligibility shall be issued by
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00424-01-9
A. 2168 2
the local housing agency until such agency determines whether the applicant is in full compliance with the provisions of sections three hundred twelve and three hundred thirteen of the executive law, and the initial adjusted monthly rent to be paid by tenants residing in rental dwelling units contained within the multiple dwelling and the comparative adjusted monthly rent that would have to be paid by such tenants if no tax exemption were applicable as provided by this section. The initial adjusted monthly rent will be certified by the local housing agency as the first rent for the subject dwelling units. A copy of such certification with respect to such units shall be attached by the applicant to the first effective lease or occupancy agreement. The initial adjusted monthly rent shall reflect the full tax exemption benefits as approved by the agency.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.