BILL NUMBER: S5172A
SPONSOR: HARCKHAM
 
TITLE OF BILL:
An act to amend the real property law, in relation to establishing an
accessory dwelling unit incentive program; to amend the executive law,
in relation to including an accessory dwelling unit in the term housing
accommodations in the human rights law; and to amend the real property
tax law, in relation to providing a tax exemption on the increase in
value of property resulting from the addition of an accessory dwelling
unit
 
SUMMARY OF PROVISIONS:
Section 1 amends the real property tax law to create a new article 16.
§ 480 establishes definitions.
§ 481 states the division shall create an opt-in program for local
governments who already have or who enact a law or ordinance which
designates areas where ADUs will be permitted, provides protections for
illegal ADU units to aid in their transition to legal ADU units, ensure-
sa streamlined approval process, and provides that sewer and septic
hookups to be governed under the applicable existing local requirements.
All local governments with a qualifying law or ordinance eligible for a
ten percent increase of points on their consolidated funding applica-
tion, a ten percent increase in aid and incentives for municipalities
and aid and incentives for municipalities related payments, increased
eligibility for individual infrastructure, transportation, parks, and
economic development grants.
§ 482 states the division shall establish a lending program to assist
low-income homeowners and moderate-income homeowners in securing financ-
ing for an ADU.
Section 2 amends section 292 of the executive law to designate ADUs as
housing accommodations as defined in subdivision one of section four
hundred eighty of the real property law.
Section 3 amends section 296 of the executive law to state that the
exemptions from the provisions granted for the rental of a housing
accommodation in a building which contains housing accommodations for
not more than two families living independently of each other, if the
owner resides in one of such accommodations, shall not apply in the case
of ADUs.
Section 4 amends the real property tax law to state that residential
buildings reconstructed, altered, improved, or newly constructed in
order to create one or more ADUs shall be exempt from taxation and
special ad valorem levies. A municipality or school district not subject
to article fifty-two of the education law may adopt a resolution to
grant the exemption. Such buildings will be exempt for five years
provided that one hundred percent of the increase in assessed value can
be attributed to the addition of an ADU. In any year in which a change
in level of assessment of fifteen percent or more is certified for a
final assessment the exemption base shall be multiplied by a fraction,
the numerator shall be the total assessed value of the parcel on such
final assessment roll, and the denominator shall be the total assessed
value of the parcel on the immediately preceding final assessment roll.
The result shall be the new exemption base. Such exemption shall be
limited to two hundred thousand dollars in increased market value of the
property attributable to the addition of an ADU. Such exemptions shall
only be granted by the commissioner. In the event that a building grant-
ed an exemption ceases to be used primarily for residential purposes, or
its title is transferred to other than the heirs or distributees of the
owner, the exemption granted pursuant to this section shall cease.
Section 5 states the effective date.
 
JUSTIFICATION:
In the midst of the affordable housing crisis, New York must create new,
cost effective homes while giving homeowners the opportunity to earn new
sources of income. In recent years, states like California have passed
similar "Accessory Dwelling Unit" (ADU) laws with support from housing
and tenant advocates, homeowners, civil rights groups, and local civic
leaders. These reforms are succeeding across the country because ADUs
offer a path to create badly-needed housing while respecting the exist-
ing context of neighborhoods.
ADUs are smaller, secondary homes on the same lot as a primary dwelling.
ADUs are independently habitable and provide the basic requirements of
shelter, heating, cooking, and sanitation. ADUs can take many forms: a
small "in-law unit," a garage conversion, a backyard cottage, a basement
apartment, or a converted attic. Because they frequently involve the
adaptation of existing structures, they are also often invisible from
the street. Furthermore, owing to their small footprint and lower cost
of construction, ADUs can provide more affordable housing options than
existing alternatives.
Unfortunately, outdated state and local rules often make it impossible
or too costly for a homeowner to create an ADU and earn the income that
comes with a new rental. And those ADUs that do exist are too-often
unregulated and unsafe, leaving tenants without the protections they
deserve and homeowners vulnerable to substantial fines.
This bill solves that problem by giving homeowners a streamlined process
to create ADUs; offering a state financing program to help low- and-mod-
erate income homeowners finance ADU creation; and ensuring that tenants
in ADUs are protected against discrimination, unreasonable rent
increases, and unwarranted evictions.
 
LEGISLATIVE HISTORY:
Similar bill S4547A/A4854A - Died in Judiciary/Died in Local Government
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Immediately after becoming law.

Statutes affected:
S5172: 292 executive law, 296 executive law, 296(1) executive law
S5172A: 292 executive law, 296 executive law, 296(1) executive law