What's happening
This bill creates a five-year demonstration program extending J-51 tax exemptions to convert commercial spaces into mixed-use work and residential units in parts of Kings County.
Why it matters
Encourages adaptive reuse of underutilized commercial and manufacturing buildings. By extending J-51 tax benefits, the bill incentivizes property owners to convert vacant or underused M-1 zoned spaces in high-density areas of Kings County (Brooklyn) into mixed-use developments, potentially revitalizing neighborhoods and reducing blight.
Promotes integration of work and living spaces. The program specifically targets co-located work and residential units, supporting modern urban trends like live/work spaces and potentially attracting entrepreneurs, small businesses, and creatives who need flexible environments.
May impact housing supply and affordability in Brooklyn. By making it financially viable to create new residential units from existing non-residential buildings, the measure could add to the housing stock, possibly easing market pressure, though the overall affordability impact would depend on how the program is implemented and the types of units produced.
Time-limited pilot to assess effectiveness. The five-year sunset provision ensures that the program's outcomes can be evaluated before any permanent changes are made, allowing lawmakers to see if the tax incentive achieves its intended goals in Kings County.
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Who cares
Headline styles
Convert Factories to Housing
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- 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.
Convert Factories to Housing
In Assembly Committee · Real Property Taxation · Sponsor Diana Richardson
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5030
2019-2020 Regular Sessions
IN SENATE
April 3, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to establish a demonstration program extending the J-51 tax exemption to the conversion and rehabilitation of commercial and manufacturing space to co-located work space and residential units in certain high density areas in Kings county; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. There is hereby established a demonstration program to extend the provisions of the J-51 tax exemption to the conversion and rehabilitation of commercial and manufacturing space to co-located work space and residential units in certain high density, underutilized M-1 zoned properties in Kings county. For purposes of this section, J-51 is a property tax exemption and abatement for renovating a residential apartment building in certain counties of the city of New York. Such credit varies depending on the building's location and the type of improvements and shall be extended to the county of Kings.
§ 2. This act shall take effect immediately and shall expire and be deemed repealed five years after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04443-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to establish a demonstration program extending the J-51 tax exemption to the conversion and rehabilitation of commer- cial and manufacturing space to co-located work space and residential units in certain high density areas in Kings county; and providing for the repeal of such provisions upon expiration thereof
Purpose or general idea of bill
This bill establishes a demonstration program extending the J-51 tax exemption to the conversion and rehabilitation of commercial and manu- facturing space to certain high density areas in Kings county.
Summary of provisions
Section 1 establishes a demonstration program to extend the provisions of the J-51 tax exemption to the conversion and rehabilitation of commercial and manufacturing space to co-located work space and residen- tial areas in certain high density, underutilized M-1 zoned properties in Kings county.
Justification
The J-51 benefit program is a tax incentive for the renovation of multi- ple unit residential buildings in New York City. It was created in to give incent to owners of rent-regulated buildings to make improvements to their buildings. Through the program, owners are able to recover approximately 75% of the costs of the improvements and with a building receiving J-51 funds, it is not allowed to decontrol rent.
The J-51 tax incentive program has been a driving force in the rehabili- tation of older residential buildings for years. But its reach must be extended. There are many underutilized properties in Brooklyn that have yet to receive the benefits of J-51. This bill adapts to a new modality of an entrepreneurial millennial workforce who will need to live and work within the same space given the low to non-existent vacancy rate of affordable housing. This modification to the program, will continue to make J-51 one of the most successful housing rehabilitation programs in New York City history.
Prior legislative history
2017-18: S.2359 - REFERRED TO LOCAL GOVERNMENT: 2015-2016: S.2730 - Referred to Local Government
Fiscal implications
Minimal.
Effective date
This act shall take effect immediately and shall expire and be deemed repealed in five years after such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.