New York bill would offer tax credits to some rent-stabilized buildings

The bill would let eligible building owners receive a credit against the following year's tax liability. At least half of the building's units must be individually occupied and rent-stabilized. The tax burden on those units must exceed 75 percent of gross stabilized rent, and the building's capitalization rate must be less than two percentage points above the federal prime rate. The rebate would equal half of the property tax assigned to rent-stabilized apartments above the 75 percent threshold. The building could not have open serious hazardous violations unless they were fixed within six months of applying. The owner would have to repay the rebate if the building failed to remain eligible during the two years after the award. Owners would apply each year by June 30. No rebates could be issued until the second full tax year after the law takes effect.

The state Department of Taxation and Finance would administer the program and issue rules for applications and tax allocation. The program would involve the state tax department, New York City's finance and housing departments, and the state housing agency. The department would set a standard formula for assigning building taxes to apartments and create a secure online application portal. It would make a data-sharing agreement with New York City's finance and housing departments and the state housing agency. The department would have 180 days after the law takes effect to issue the rules.

The program would begin as a pilot in selected New York City community boards, with yearly reports and regular reviews. The initial pilot would be limited to qualifying community boards in New York City. The pilot would cover community boards where median household income is below 40 percent of the area median income. The department could recommend changes to eligibility or rebate amounts after its review. The department would report each year by January 1 and conduct a performance audit every four years.