BILL NUMBER: S1462
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to establishing
ground rent rebates for eligible homeowners and renters in the Battery
Park project area
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill is intended to promote housing affordability and stability for
income-eligible homeowners and renters whose primary residences are
located in the Battery Park City neighborhood in Lower Manhattan.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 1974-b of the public authorities
law to add a new subdivision 3.
Paragraph a of the new subdivision defines five key terms. "Eligible
homeowner" is defined as an owner of a residence in BPC who occupies
their home as their primary residence and whose annual household income
does not exceed 150% of the area median income, adjusted for household
size. "Eligible renter" is defined as a renter in BPC who occupies a
rental unit that is designated a quasi-rent stabilized unit or has a
restriction on annual rent increases under a regulatory agreement
between the landlord and the SPCA, and whose annual household income
does not exceed 150% of the area median income, adjusted for household
size. "Rebate base year" is defined as 2021 or the year preceding the
year in which a homeowner or renter first becomes income eligible.
"Homeowner's ground rent" is defined as the portion of a homeowner's
building's ground rent attributable to the homeowner's occupancy of
their primary residence. "Renter's ground rent" is defined as the
portion of a renter's rent payment attributable to the ground rent for
the occupancy of their unit as their primary residence.
Paragraph b of the new subdivision would direct the BPCA to offer to
each eligible homeowner and renter a rebate of the portion of their
ground rent equal to the difference between the amount of the homeown-
er's or renter's ground rent due in the base year and the amount due and
paid in the year for which the eligible homeowner or renter applies for
the rebate. This paragraph also directs the BPCA to permit eligible
homeowners and renters to certify that they expect to meet eligibility
criteria in the next succeeding year. Paragraph c of the new subdivision
states that the BPCA shall promulgate procedures for the rebate program
within 180 days of the effective date of the subdivision.
Section 2 of the bill sets forth the effective date.
 
JUSTIFICATION:
Located in Lower Manhattan on the West Side, Battery Park City (BPC) is
a dense, mixed residential and commercial neighborhood. Over time, rapid
escalation of property values in the area have made it increasingly
difficult for many residents to continue to afford to live there, espe-
cially low-, moderate-, and middle-income residents who first moved to
BPC when the neighborhood was affordable and who helped build BPC into
the community it is today. This legislation will promote the housing
stability and affordability for income-eligible primary residents who
own or rent their home in BPC.
Like most property leases, ground rent in Battery Park City increases
over time. The initial ground lease agreements included provisions that
reset a building's ground rent to the BPCA at a new amount that is
calculated at 6% of the property's fair market value at the time of the
reset. Under the provisions of the initial agreements, the reset would
happen every 15 years. While there are ongoing efforts to renegotiate
the provisions of various buildings' ground leases, there is a need to
ensure that low-, moderate, and middle-income homeowners and renters
have effective protections from unaffordable increases that might
continue to be generally applicable to their buildings. To ensure that
long-time BPC residents who have contributed to the flourishing of the
neighborhood can afford to remain in their homes, this bill would freeze
the ground rent obligations for primary resident homeowners who have an
annual income at or below 150% of area median income. For renters, this
bill would freeze the portion of a renter's rent payment attributable to
ground rent for primary resident renters who live in designated quasir-
ent stabilized units or have restrictions on annual rent increases under
a regulatory agreement. Any amount above the frozen ground rent would be
credited back to qualifying homeowners and renters via a rebate.
 
PRIOR LEGISLATIVE HISTORY:
2024: S2963A (Kavanagh) - REFERRED TO CORPORATIONS, AUTHORITIES AND
COMMISSIONS /A7622A (Fall) - referred to corporations, authorities and
commissions
2023: S2963A (Kavanagh) - PASSED SENATE /A7622A (Fall) referred to
corporations, authorities and commissions
2022: S9455 (Kavanagh) - REFERRED TO CORPORATIONS, AUTHORITIES AND
COMMISSIONS
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S1462: 1974-b public authorities law