What's happening
This bill clarifies that "first building permit" for tax abatement eligibility means the permit allowing actual construction, not just site preparation, especially for projects delayed by Hurricane Sandy.
Why it matters
Clarifies abatement eligibility for delayed projects. By specifying that “first building permit” means the permit allowing actual construction—not just site prep—this bill could help projects stalled by Hurricane Sandy qualify for tax abatements they might have otherwise missed due to permit technicalities.
Reduces ambiguity for developers and property owners. The clearer definition of permit timing provides more certainty to those planning or executing industrial and commercial projects, minimizing legal disputes over eligibility and application deadlines.
Targets relief for storm-impacted communities. The bill specifically applies to projects delayed by Hurricane Sandy and currently under legal or administrative review, aiming to support recovery and redevelopment in areas hardest hit by the disaster.
Prevents unintended disqualification. Without this clarification, some property owners could be penalized for delays outside their control (e.g., waiting for a construction, rather than site prep, permit), potentially losing vital financial incentives for rebuilding or development.
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Who cares
Owners of qualifying New York City industrial and commercial properties
For projects delayed by Hurricane Sandy environmental damage and subject to contested review, the bill would tie abatement deadlines to permits allowing actual construction rather than merely site preparation.
New York City Department of Finance
The department would apply the clarified permit trigger to preliminary and final applications, minimum expenditures and construction completion for covered projects.
Architects, contractors and authorized applicant representatives
Those filing preliminary applications for covered projects would use the actual-construction permit date to determine the filing deadline.
Property owners contesting abatement decisions in court
The bill would apply immediately to projects meeting both its Sandy-delay and contested-review conditions, potentially affecting the deadlines at issue in their cases.
Headline styles
Clarify Building Permit Abatement
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Print number 8430b
- Amend and recommit to cities
- Print number 8430a
- Amend (t) and recommit to cities
- Referred to cities
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.
Clarify Building Permit Rules
In Assembly Committee · Real Property Taxation · Sponsor Alicia Hyndman
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8430--B
IN SENATE
May 29, 2020
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Cities -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to clarifying the definition of "first building permit" for purposes of filing requirements to qualify for an abatement of tax payments for certain industrial and commercial properties located in a city of one million or more persons
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 1 and 2 and paragraph (a) of subdivision 5 of section 489-cccccc of the real property tax law, as added by chapter 119 of the laws of 2008, subparagraph (ii) of paragraph (a) of subdivision 5 as amended by chapter 397 of the laws of 2017, are amended to read as follows:
1. Time limit for meeting minimum required expenditure. Applicants must meet the appropriate minimum required expenditure as provided in subdivision three of section four hundred eighty-nine-bbbbbb of this title relating to the abatement for which such project qualifies as follows:
(a) No later than four years from the date of issuance of the first building permit that allows actual construction work on the proposed project, not merely site preparation, to commence, or if no permit was required, the commencement of construction.
(b) Mixed use properties. Expenditures for construction work related to the common areas and systems of such property shall be allocated under rules promulgated by the department between the residential, nonresidential and retail, if any, portions of the property.
2. Time limit for completion of construction. Construction of buildings or structures for which benefits have been approved shall be completed no later than five years from the date of issuance of the first building permit that allows actual construction work on the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16529-07-0
S. 8430--B 2
proposed project, not merely site preparation, to commence, or if no permit was required, the commencement of construction. Failure to meet this requirement shall result in termination of any inflation protection provided under subdivision three of section four hundred eighty-ninebbbbbb of this title for any tax year that begins following the date by which completion of construction is required under this paragraph.
(a) Time to file. (i) Preliminary application. (A) Building permit. No benefits pursuant to this title shall be granted for any construction work unless the applicant filed a preliminary application for such benefits on or before the date of issuance of the first building permit that allows actual construction work on the proposed project, not merely site preparation, to commence for such work. This requirement may be satisfied where the applicant's architect, contractor or other representative authorized to file the application for such building permit files with the department on behalf of the applicant a preliminary application containing such information as the department shall prescribe by rule.
(B) No building permit required. Where construction work does not require a building permit, a notarized letter from the project's architect or engineer notifying the department of this fact shall be filed within thirty calendar days of the commencement of construction. In such circumstance, such letter shall also satisfy the requirement of a preliminary application if the letter contains all of the information required for a preliminary application under rules prescribed by the department.
(ii) Final application. Applicants shall file a final application for benefits no later than one year from the date of issuance of the first building permit [for construction work] that allows actual construction work on the proposed project, not merely site preparation, to commence, or, where construction work does not require a building permit, no later than one year from the date of commencement of construction. Abatement benefits shall not be granted until the applicant files the final application. If the final application is not filed within such one year period, abatement benefits shall not be granted until such application is filed, and the department may delay the granting of such benefits, at the department's discretion, to investigate the reason for the late filing.
§ 2. This act shall take effect immediately and shall apply to construction projects that:
(i) were delayed as a result of environmental damage due to Hurricane Sandy in the fall of 2012; and
(ii) for which a decision is under contested review by a court of competent jurisdiction or by the New York City Department of Finance.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to clarifying the definition of "first building permit" for purposes of filing require- ments to qualify for an abatement of tax payments for certain industrial and commercial properties located in a city of one million or more persons
Purpose
To clarify that the building permit related to eligibility for the Industrial and Commercial Abatement Program (ICAP) is one which allows actual construction work to take place.
Summary of provisions
Section one of the bill amends subdivisions 1 and 2 and paragraph (a) of subdivision 5 of § 489-cccccc of the real property tax law to specify the first building permit related to filing requirements for the indus- trial and commercial abatement program means the first building permit that allows actual construction work on the proposed project, and not merely site preparation, to commence.
Section two of the bill provides the effective date.
Justification
Industrial and Commercial Abatement Program (ICAP) was enacted in 2008 to provide an abatement of real property taxes for the construction, alteration, or improvement of certain industrial or commercial proper- ties in certain areas of New York City. Among the time limit require- ments of the program when a building permit is mandatory are:
* Construction work must meet a Minimum Required Expenditure no later than four years from the date of issuance of the first building permit
* Construction must be completed within five years from the date of issuance of the first building permit.
* The applicant must file a preliminary application on or before the issuance of the first building permit for the project
* Applicants must also submit a final application within one year from the date of issuance of the first building permit
At times, however, these time limits make it impossible for a business to be eligible to participate in ICAP. Currently the time limit begins when a building permit is first issued, yet, in some instances a busi- ness must obtain multiple building permits for a project, most of which are not building permits which permit construction to begin.This has led to a subjective interpretation as to which building permit is the controlling factor as to when the time limits begin. This is unfair to business owners who are looking to participate in ICAP which will allow them, among other things, to grow their business and leads to more jobs and an increase economic activity which will only help during this difficult fiscal environment. This legislation clarifies that the time limits begin with the issuance of the first building permit that allows construction to being.
Prior legislative history
New bill
Fiscal implications
None to the State
Effective date
Immediately and shall apply to projects that were delayed as a result of environmental damage due to Hurricane Sandy in the fall of 2012 and for which a decision is under contested review by the court or by the New York City Department of Finance.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.