S T A T E O F N E W Y O R K
________________________________________________________________________
2353
2023-2024 Regular Sessions
I N A S S E M B L Y
January 25, 2023
___________
Introduced by M. of A. FALL -- read once and referred to the Committee
on Aging
AN ACT to amend the real property tax law, in relation to exempting real
property of an applicable battery park city property from payments in
lieu of taxes; to amend a chapter of the laws of 2022 relating to
directing the battery park city authority to extend its lease with the
city of New York, as proposed in legislative bills numbers S. 9032-B
and A. 10414-A, in relation to directing the battery park city author-
ity to extend its restated and amended master lease by at least fifty
years; and to repeal certain provisions of the real property tax law
relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The section heading, paragraphs b and i of subdivision 1,
subdivision 2, the opening paragraph of paragraph b of subdivision 3 and
subdivisions 6, 7 and 8 of section 467-c of the real property tax law,
as amended by part A of a chapter of the laws of 2022 amending the real
property tax law relating to authorizing eligibility for SCRIE and DRIE
for tenants of properties located in battery park city, as proposed in
legislative bills numbers S. 9032-B and A. 10414-A, are amended and a
new paragraph n of subdivision 1 is added to read as follows:
Exemption for property owned by certain housing companies or [leased
by] SUBLESSEES OF the battery park city authority and occupied by senior
citizens or persons with disabilities.
b. "Dwelling unit" means that part of a dwelling in which an eligible
head of the household resides and (1) which is subject to the provisions
of[: (1)] Article II, IV, V, or XI of the private housing finance law;
or (2) [that part of a dwelling] which was or continues to be subject to
a mortgage insured or initially insured by the federal government pursu-
ant to section two hundred thirteen of the National Housing Act, as
amended, in which an eligible head of the household resides; or (3) [a
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04140-01-3
A. 2353 2
sublease with the] WHICH IS WITHIN AN APPLICABLE battery park city
[authority] PROPERTY.
i. "Maximum rent" means the maximum rent, excluding gas and electric
utility charges, which has been authorized or approved by the commis-
sioner or the supervising agency or the legal regulated rent established
for the dwelling unit pursuant to the provisions of either Article II,
IV, V or XI of the private housing finance law, or the rental estab-
lished for a cooperatively owned dwelling unit previously regulated
pursuant to the provisions of Article II, IV, V or XI of the private
housing finance law; or such approved rent for a dwelling unit in a
dwelling subject to a mortgage insured or initially insured by the
federal government pursuant to section two hundred thirteen of the
National Housing Act, as amended; or such rent established for a dwell-
ing unit which was subject to a mortgage insured or initially insured by
the federal government pursuant to section two hundred thirteen of the
National Housing Act, as amended; or the rent established FOR AN APPLI-
CABLE BATTERY PARK CITY PROPERTY [pursuant to a regulatory agreement
between the battery park city authority and the landlord].
N. "APPLICABLE BATTERY PARK CITY PROPERTY" MEANS A PROPERTY THAT IS
(1) SUBJECT TO A LEASE OR SUBLEASE WITH THE BATTERY PARK CITY AUTHORITY;
AND (2) HAS ONE OR MORE RESIDENTIAL UNITS WHICH ARE SUBJECT TO LIMITA-
TIONS ON RENT INCREASES PURSUANT TO:
(I) A CONTRACTUAL AGREEMENT WITH THE BATTERY PARK CITY AUTHORITY,
WHICH MAY BE WITHIN THE LEASE OR SUBLEASE BETWEEN THE BATTERY PARK CITY
AUTHORITY AND THE LESSEE OR SUBLESSEE; OR
(II) A REGULATORY AGREEMENT WITH THE COMMISSIONER OR SUPERVISING AGEN-
CY.
2. The governing body of any city having a population of one million
or more, acting through its local legislative body or other governing
agency is hereby authorized and empowered to adopt and amend local laws
or ordinances providing that real property of a housing company [or
landlord who is subject to a sublease with the battery park city author-
ity] shall be exempt from real property taxes [or] AND THAT REAL PROPER-
TY OF AN APPLICABLE BATTERY PARK CITY PROPERTY SHALL BE EXEMPT FROM
payments in lieu of taxes (PILOT), in an amount equal to the rent
increase exemptions actually credited to eligible heads of households
pursuant to this section. Any such exemption shall be in addition to any
other exemption or abatement of taxes authorized by law.
notwithstanding any other provision of law, when a head of the house-
hold to whom a then current, valid tax abatement certificate has been
issued moves his principal residence from one dwelling unit subject to
this section, to the local emergency housing rent control law or to the
emergency tenant protection act of nineteen seventy-four to a subsequent
dwelling unit which is subject to the provisions of articles II, IV, V
or XI of the private housing finance law AND WHICH IS LOCATED WITHIN THE
SAME MUNICIPAL CORPORATION, or which is or was subject to a mortgage
insured or initially insured by the federal government pursuant to
section two hundred thirteen of the National Housing Act, as amended,
[or which is subject to the provisions of a sublease between the land-
lord and the battery park city authority] and which is located within
the same municipal corporation, OR WHICH IS AN APPLICABLE BATTERY PARK
CITY PROPERTY, the head of the household may apply for a tax abatement
certificate relating to the subsequent dwelling unit, subject to any
terms and conditions imposed by reason of any fund created under subdi-
vision eight of this section, and such certificate may provide that the
head of the household shall be exempt from paying that portion of the
A. 2353 3
maximum rent or legal regulated rent for the subsequent dwelling unit
which is the least of the following:
6. Any such local law or ordinance may provide that upon receipt of a
copy of the rent increase exemption order/tax abatement certificate, the
housing company managing the dwelling unit or the landlord of the dwell-
ing unit[, subject to a sublease with the] WITHIN AN APPLICABLE battery
park city [authority] PROPERTY, of the eligible head of the household
shall promptly accord to the eligible head of the household covered by
such order/certificate the appropriate credit against the monthly maxi-
mum rent then or thereafter payable. To the extent the full amount of
such credit has not been accorded for any past period since the effec-
tive date specified in the order/certificate, the housing company or
landlord shall credit the total aggregate amount not so credited to the
monthly maximum rent next payable or to such subsequent monthly maximum
rents as the supervising agency may authorize. It shall be illegal to
collect any amount for which a rent increase exemption order/tax abate-
ment certificate provides credit or to withhold credit for any such
amounts already collected, and collection or retention of any such
amount for a dwelling unit occupied by such eligible head of the house-
hold shall be deemed a rent overcharge, and upon conviction therefor the
housing company and its directors and any employee and any agent respon-
sible therefor or the landlord and any employee and any agent responsi-
ble therefor shall be guilty of a misdemeanor, punishable by a fine not
to exceed one thousand dollars or imprisonment not to exceed six months,
or both.
7. Any such local law or ordinance may provide that in order to obtain
the benefits to which it is entitled under this section, a housing
company or landlord [who is subject to a sublease with the] OF AN APPLI-
CABLE battery park city [authority] PROPERTY must file with the collect-
ing officer charged with the duty of collecting taxes [or PILOT] of the
municipality OR PILOT a sworn application, in such form as such officer
may prescribe, for any quarterly period in which the housing company or
landlord has accorded an eligible head of the household an exemption
hereunder from the payment of the maximum rent. Subject to prior or
subsequent verification thereof, the collecting officer shall credit the
total amount of such exemptions actually accorded to occupants of dwell-
ing units contained in the property against the real property taxes or
PILOT otherwise payable with respect to the property. The housing compa-
ny or landlord shall attach to such application copies of all rent
increase exemption orders/tax abatement certificates issued to eligible
heads of the household residing in dwelling units in such real property.
8. Any such local law or ordinance may provide that in the event that
the real property of a housing company or [landlord who is subject to a
sublease with the] APPLICABLE battery park city [authority] PROPERTY
containing one or more dwelling units shall be totally exempt from local
and municipal real property taxes or PILOT for any fiscal year as a
result of the exemptions from maximum rent credited pursuant to this
section, or otherwise, such municipality may make or contract to make
payments to a housing company or landlord in an amount not exceeding the
amount necessary to reimburse the housing company or landlord for the
total dollar amount of all exemptions from the payment of the maximum
rent accorded pursuant to this section to eligible heads of the house-
hold residing in dwelling units in such real property. NOTWITHSTANDING
THE FOREGOING, THE BATTERY PARK CITY AUTHORITY SHALL HAVE NO OBLIGATION
WHATSOEVER TO REIMBURSE A LANDLORD.
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A municipality may create and establish a fund in order to provide for
the payments made in accordance with contracts entered into pursuant to
this subdivision. There may be paid into such fund (1) all of the rental
surcharges collected by the municipality from housing companies organ-
ized and existing pursuant to Articles II, IV, V and XI of the private
housing finance law and (2) any moneys appropriated or otherwise made
available by the municipality for the purpose of such fund.
§ 2. Subdivision 13 of section 467-c of the real property tax law, as
added by part A of a chapter of the laws of 2022 amending the real prop-
erty tax law relating to authorizing eligibility for SCRIE and DRIE for
tenants of properties located in battery park city, as proposed in
legislative bills numbers S. 9032-B and A. 10414-A, is REPEALED.
§ 3. Section 1 of part C of a chapter of the laws of 2022 relating to
directing the battery park city authority to extend its lease with the
city of New York, as proposed in legislative bills numbers S. 9032-B and
A. 10414-A, is amended to read as follows:
Section 1. Notwithstanding any provision of law to the contrary, with-
in six months of the effective date of this act, the battery park city
authority shall extend the expiration date of the RESTATED AND AMENDED
MASTER lease [between the authority and the city of New York, dated
November 24, 1969 and] CAPTIONED "RESTATED AMENDED AGREEMENT OF LEASE"
DATED JUNE 10, 1980, A MEMORANDUM OF WHICH WAS recorded [December 26,
1969] IN THE OFFICE OF THE CITY REGISTER on page [1] 163 of reel [161]
527, as supplemented, restated and amended, until June 18, 2119 OR
LATER.
§ 4. This act shall take effect on the same date and in the same
manner as part A of a chapter of the laws of 2022 amending the real
property tax law relating to authorizing eligibility for SCRIE and DRIE
for tenants of properties located in battery park city, as proposed in
legislative bills numbers S. 9032-B and A. 10414-A, takes effect;
provided, however, that section three of this act shall take effect on
the same date and in the same manner as part C of a chapter of the laws
of 2022 relating to directing the battery park city authority to extend
its lease with the city of New York, as proposed in legislative bills
numbers S. 9032-B and A. 10414-A, takes effect.