BILL NUMBER:S2314         REVISED MEMO 01/29/2015

TITLE OF BILL:  An act to amend the real property tax law, in relation
to extending eligibility, for an additional three years, for the
exemption of certain new or substantially rehabilitated multiple
dwellings from local taxation

PURPOSE:

To continue the real property tax law 421-m exemption program for an
additional three year period.

SUMMARY OF PROVISIONS:

Section one of this bill amends paragraph (b) of subdivision 3 of
section 421-m of the real property tax law

Section two provides an immediate effective date.

JUSTIFICATION:

Section 421-m of the Real Property Tax law is a new program which was
established by Chapter 47 of the laws of 2011. It authorizes most
municipalities outside of New York City, at local option, to enact a
local law to offer a real property tax incentive to encourage the
development of affordable housing and the remediation of blighted or
              

underutilized areas within a city, town or village.

Under 421-m, the municipality may designate a development area in
which multiple dwellings and mixed use development consisting of 50%
or more residential floor space, will be eligible for the program if
they contain a minimum of 20% affordable housing and have been
constructed on formerly blighted, unsanitary, vacant, or underutilized
property. In order to ensure continued eligibility for the exemption,
tenants may not pay more than 30% of their income in rent.

The program provides a unique opportunity for localities to encourage
development, especially in dilapidated downtown areas which require
incentive development to bring residents back to main street areas to
help revitalize them. The program is schedule to end on June 15, 2015
and in order to take advantage of the program, a municipality must
enact a local law and construction on any eligible project must begin
by that date.

Unfortunately, 421-m has not yet been utilized by a locality. Part of
the reason for this is that the New York State Division of Housing has
only recently developed the draft regulations which are necessary for
a municipality to develop an income certification and monitoring plan
as directed by the statute. Extension of the program for another three
years will afford more time for municipal governments to institute the
necessary planning and development strategies, to pass a local law
implementing the program, and to have their certification and income
monitoring plans approved by the New York State Division of Housing.

LEGISLATIVE HISTORY:

2013, 2014: S.5318 Passed the Senate


FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.