S 4414: Establishes an optional local tax exemption for affordable multi-family housing, to be implemented by cities, towns and villages based on recommendations developed by the division of housing and community renewal for each economic development region.

  
  STATE OF NEW YORK ________________________________________________________________________ 4414 2025-2026 Regular Sessions  IN SENATE February 4, 2025 ___________ Introduced by Sen. MAY -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the real property tax law, in relation to establishing an optional local tax exemption for affordable multi-family housing The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property tax law is amended by adding a new 2 section 421-r to read as follows: 3 § 421-r. Exemption of newly-constructed or converted rental multiple 4 dwellings. 1. (a) A city, town or village may, by local law, provide 5 for the exemption of rental multiple dwellings constructed or converted 6 in a benefit area designated in such local law from taxation and special 7 ad valorem levies, as provided in this section. Subsequent to the 8 adoption of such a local law, any other municipal corporation in which 9 the designated benefit area is located may likewise exempt such property 10 from its taxation and special ad valorem levies by local law, or in the 11 case of a school district, by resolution. 12 (b) As used in this section, the term "benefit area" means the area 13 within a city, town or village, designated by local law, to which an 14 exemption, established pursuant to this section, applies. 15 (c) The term "rental multiple dwelling" means a structure, other than 16 a hotel, consisting of twenty or more dwelling units, where all of the 17 units are rented for residential purposes, and such units, upon initial 18 rental and upon each subsequent rental following a vacancy during the 19 benefit period, are affordable to and restricted to occupancy by indi- 20 viduals or families whose household income does not exceed a certain 21 percentage, as determined based on recommendations developed by the 22 division of housing and community renewal for each economic development 23 region, of the area median income, adjusted for family size, on average, 24 at the time that such households initially occupy such dwelling units. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08680-01-5 
 S. 4414 2 1 Such restriction period shall be in effect coterminous with the benefit 2 period, provided, however, that the tenant or tenants in an income 3 restricted dwelling unit at the time such restriction period ends shall 4 have the right to lease renewals at the income restricted level until 5 such time as such tenant or tenants permanently vacate the dwelling 6 unit. 7 2. (a) The division of housing and community renewal shall develop 8 recommendations for each economic development region, as established by 9 section two hundred thirty of the economic development law, regarding 10 the implementation of the exemption created under this section. Cities, 11 towns, and villages providing such exemption shall have the option to 12 opt into such recommendations. 13 (b) Such recommendations shall: 14 (i) consider the financial feasibility of constructing new housing or 15 converting a non-residential structure to a rental multiple dwelling and 16 operating such housing in each economic development region, including 17 any variation in construction costs and operating incomes for rental 18 multiple dwelling projects in different parts of each such region, and 19 among subsidized and unregulated rental multiple dwelling projects; 20 (ii) include recommendations for both rental multiple dwelling 21 projects receiving additional subsidies or exemptions and rental multi- 22 ple dwelling projects receiving no additional subsidies or exemptions; 23 and 24 (iii) include recommendations for the conversion of non-residential 25 property for residential use. 26 (c) Such recommendations shall be updated by the division of housing 27 and community renewal no less than once every two years. 28 3. Application for exemption under this section shall be made on a 29 form prescribed by the commissioner and filed with the assessor on or 30 before the applicable taxable status date. 31 4. In the case of a newly constructed or converted property which is 32 used partially as a rental multiple dwelling and partially for commer- 33 cial or other purposes, the portion of the property that is used as a 34 rental multiple dwelling shall be eligible for the exemption authorized 35 by this section if: 36 (a) The square footage of the portion used as a rental multiple dwell- 37 ing represents at least fifty percent of the square footage of the 38 entire property; 39 (b) The rental units are affordable to individuals or families as 40 determined according to the criteria set forth in paragraph (c) of 41 subdivision one of this section; and 42 (c) The requirements of this section are otherwise satisfied with 43 respect to the portion of the property used as a rental multiple dwell- 44 ing. 45 5. The exemption authorized by this section shall not be available in 46 a city with a population of one million or more. 47 6. Any recipient of the exemption authorized by this section or their 48 designee shall certify compliance with the provisions of this section 49 under penalty of perjury, at such time or times and in such manner as 50 may be prescribed in the local law adopted by the city, town or village 51 pursuant to paragraph (a) of subdivision one of this section, or by a 52 subsequent local law. Such city, town or village may establish such 53 procedures as it deems necessary for monitoring and enforcing compliance 54 of an eligible building with the provisions of this section. 55 § 2. This act shall take effect immediately.