BILL NUMBER: S5662
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the private housing finance law, in relation to author-
izing a reduction of taxes pursuant to shelter rent
 
PURPOSE::
This bill would eliminate the shelter rent tax for Mitchell-Lama devel-
opments in New York City and authorize localities other than New York
City to eliminate or reduce the shelter rent tax for developments to
below ten percent through local legislative action.
 
SUMMARY OF SPECIFIC PROVISIONS::
Section 1 of the bill amends section paragraph (a) of subdivision 1 of
section 33 of the Private Housing Finance Law to eliminate the shelter
rent tax that currently applies to Mitchell-Lama developments in New
York City and to provide that localities other than New York City may
eliminate or reduce the tax for Mitchell-Lama developments through local
legislative action.
Section 2 of the bill sets forth the effective date.
 
JUSTIFICATION:
Mitchell-Lama housing provides affordable, stable homes for low- and
moderate-income New Yorkers, but many Mitchell-Lama developments are
struggling to maintain affordability while keeping up with capital and
operating costs.
This bill would eliminate an onerous tax on this class of affordable
housing in New York City, creating parity with other types of affordable
housing projects, which are often exempt from taxes, to support their
affordability and ongoing operating costs. This bill would also author-
ize localities other than New York City to eliminate or reduce this tax
burden.
 
LEGISLATIVE HISTORY::
This is a new bill.
 
FISCAL IMPLICATIONS::
None.
 
EFFECTIVE DATE::
This act shall take effect immediately.

Statutes affected:
S5662: 33 private housing finance law, 33(1) private housing finance law, 33(4) private housing finance law