BILL NUMBER: S1718B
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to partially
exempting from taxation certain residential real property transferred to
low-income households
 
PURPOSE OF THE BILL
This bill provides a real property tax exemption for property trans-
ferred from a nonprofit housing organization, community land trust, or
land bank to a low-income household, increasing affordability and access
to homeownership for low-income populations.
 
SUMMARY OF SPECIFIC PROVISIONS:
§ 1: Adds a new Section 457-a to the Real Property Tax Law, a real prop-
erty tax exemption for property transferred from a nonprofit housing
organization, community land trust, or land bank to a low-income house-
hold.
§ 2: Effective date.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE)
The amendment reflects changes to provide a partial property tax
exemption rather than changing the methodology by which a property would
be assessed to better reflect New York State Real. Property Tax Law. The
B-print makes it opt-in for localities rather than opt-out.
 
JUSTIFICATION:
New York State's current property tax system disproportionately impacts
low and moderate-income homeowners who qualify for subsidized homeowner-
ship by exacerbating affordability challenges for prospective home
buyers and existing homeowners in New York State. Property taxes impact
the affordability of homeownership for low-income individuals as these
property taxes are factored into the mortgage a prospective homebuyer
will qualify for, often leading to low-income households only qualifying
for mortgages in jurisdictions with low property taxes.
New York State has demonstrated its commitment to advance affordable
housing, however, New York State's property tax policies currently
hinder access to homeownership for low to moderate-income households.
Our communities cannot survive without affordable homes for people to
work and raise their children. More and more employers throughout the
state cannot find local workers due to a lack of local affordable hous-
ing. This critical piece of legislation will establish an opt-in proper-
ty tax exemption between 25 and 75%, as determined by the municipality,
for homes transferred from a nonprofit housing organization, community
land trust, or land bank to a low-income household, increasing afforda-
bility and access of homeownership.
 
LEGISLATIVE HISTORY:
2023-2024:A.6176-A/S.6255-A
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.