S T A T E   O F   N E W   Y O R K
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                                  9226

                          I N  A S S E M B L Y

                            February 4, 2016
                               ___________

Introduced  by  M.  of  A.  SCHIMMINGER -- read once and referred to the
  Committee on Real Property Taxation

AN ACT to amend the real property tax law, in relation to authorizing  a
  residential redevelopment inhibited property exemption

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 485-r of the real property tax  law,  as  added  by
chapter 406 of the laws of 2015, is amended to read as follows:
  S  485-r.  Residential  redevelopment  inhibited  property exemption[;
certain cities]. 1. As used in this section, the following  terms  shall
have the following meanings:
  (a)  "Redevelopment inhibited property" shall mean a residential prop-
erty that has been neglected or abandoned because of the local  economic
conditions  and/or conditions on the property that inhibit such property
from being redeveloped by the private  sector.  Redevelopment  inhibited
property shall not include land that is undeveloped.
  (b)  "Gap financing costs" shall mean the total cost of the property's
redevelopment as approved by the [city] MUNICIPALITY minus the  increase
in  the full valuation of the property upon completion of the redevelop-
ment.
  (c) "Base assessment" shall mean the assessed value of the property on
the day the [city] MUNICIPALITY designates the property as redevelopment
inhibited.
  (d) "Increased assessment" shall mean the assessed value of the  prop-
erty as determined by the assessor upon completion of the redevelopment.
  (e)  "Incremental  increase  in  annual property taxes" shall mean the
taxes based on the increased assessment minus the  taxes  based  on  the
base assessment.
  (f)  ["City"  shall  mean  cities  with  a population of not less than
fifteen thousand two hundred fifty and not more  than  fifteen  thousand
five  hundred as determined by the federal decennial census for the year
two thousand ten.] "MUNICIPALITY" MEANS ANY CITY, TOWN OR VILLAGE.
  2. A [city] MUNICIPALITY may, by local law, provide for the  exemption
of  real  property from taxation as provided in this section. Subsequent

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD13132-01-5

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to the adoption of such local law, the county in which such [city] MUNI-
CIPALITY is located may after a public hearing and by local law, and any
school district, all or part of which is located in such [city]  MUNICI-
PALITY,  may,  by  resolution, exempt such property from its taxation in
the same manner and to the same extent as the  [city]  MUNICIPALITY  has
done.
  3.  A  [city]  MUNICIPALITY  shall  designate  any property within the
[city] MUNICIPALITY'S boundaries as a redevelopment  inhibited  property
if one or more of the following are met:
  (a)  the [city] MUNICIPALITY has acquired title to the property pursu-
ant to article nineteen-A of the real property actions  and  proceedings
law; or
  (b) the property has been continuously vacant for a period of at least
three years; or
  (c)  the  [city]  MUNICIPALITY  has acquired title to the property via
foreclosure for unpaid taxes pursuant to article eleven of this chapter;
or
  (d) the property has outstanding  zoning,  housing,  or  uniform  code
violations  and the cost of remedying the violations exceeds the proper-
ty's value.
  4. (a) Upon the adoption of such local  law,  redevelopment  inhibited
property  shall be exempt from taxation and special ad valorem levies to
the extent of any increase in value attributable to  demolition,  alter-
ation, rehabilitation, or remediation pursuant to the following require-
ments:
  (i)  the  demolition,  alterations, rehabilitation, and/or remediation
shall be permitted by the [city's] MUNICIPALITY'S bureau  of  inspection
such  that  building  or  plumbing  permits  issued and said demolition,
alterations, rehabilitation,  and/or  remediation  shall  have  met  all
necessary  approvals  per  the  applicable  New  York state uniform fire
prevention and building code, the [city's] MUNICIPALITY'S municipal code
and the [city's] MUNICIPALITY'S bureau of  inspection  upon  completion;
and
  (ii)  the  property  for  which  the  exemption  is sought shall be an
owner-occupied one-family residence; and
  (iii) the owner of such property shall file annually an  affidavit  of
residency  with the assessor of the [city] MUNICIPALITY on or before the
appropriate taxable status date of such [city] MUNICIPALITY,  confirming
continued owner-occupancy of the property; and
  (iv)  the redevelopment inhibited property is exempt from taxation and
special ad valorem levies attributable to the increased assessment minus
the taxes and special ad valorem levies imposed on the base  assessment.
Such exemption shall not apply to special assessments.
  (b)  In  the  event the property granted an exemption pursuant to this
section ceases to be owner-occupied and/or the affidavit of residency is
not filed annually for the  approved  exemption  period,  the  exemption
granted pursuant to this section shall cease.
  (c)  In  the  event the property granted an exemption pursuant to this
section ceases to be a one-family dwelling, the exemption granted pursu-
ant to this section shall cease.
  (d) In the event the owner of the property is convicted of a violation
or misdemeanor pursuant to New York state uniform  fire  prevention  and
building  code  or  the  [city's]  MUNICIPALITY'S  municipal  code,  the
exemption granted pursuant to this section shall cease.
  5. (a) Such redevelopment inhibited property shall  be  exempt  for  a
period  equal  to  the  gap  financing  costs divided by the incremental

A. 9226                             3

increase in annual property taxes resulting from such redevelopment. The
exemption period shall be rounded up to the  nearest  whole  number  and
shall not exceed twenty-five years.
  (b)  The  extent of such exemption shall decrease the last eight years
of the exemption period by twelve and one-half percent of  the  increase
in assessment due to the redevelopment equaling a zero percent exemption
on the final year of the exemption period.
  6.  (a)  Such  exemption shall be granted only upon application by the
owner of such building for the residential redevelopment inhibited prop-
erty exemption, on a form prescribed by the [city] MUNICIPALITY.    Such
application  must  be filed with the assessor of the [city] MUNICIPALITY
on or before the appropriate taxable status date of such [city]  MUNICI-
PALITY.    The application must be filed with the assessor of the [city]
MUNICIPALITY within three years from the date of completing the  demoli-
tion, alterations, rehabilitation, and/or remediation.
  (b)  The  owner  filing for such exemption shall not be required to be
the owner responsible for completing the demolition, alterations,  reha-
bilitation, and/or remediation.
  (c)  If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the applica-
tion and such real property shall thereafter be exempt from taxation and
special ad valorem levies by the [city] MUNICIPALITY commencing with the
assessment roll prepared after the taxable status date  referred  to  in
this  subdivision.  The assessed value of any exemption granted pursuant
to this section shall be entered by the assessor of the  [city]  MUNICI-
PALITY on the assessment roll with the taxable property, with the amount
of the exemption shown in a separate column.
  (d)  Once  granted,  the  residential redevelopment inhibited property
exemption runs with the land for the exemption period pursuant  to  this
section.
  S 2. This act shall take effect immediately.