BILL NUMBER: S6211
SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to tax abatements
for building owners in a city having a population of one million or more
who complete facade repairs
 
PURPOSE:
This bill creates a property tax abatement for buildings that complete
facade repairs -and take down sidewalk sheds within a year of installa-
tion. It also establishes penalties for buildings that fail to complete
facade repairs and take down sidewalk sheds within eighteen months of
installation.
 
SUMMARY OF PROVISIONS:
Section one of the bill names it the RESTORE Act (Reducing Excess Scaf-
folding and Timely Ongoing Repair Efforts).
Section two of the bill outlines the legislative intent of the bill, to
incentivize the timely completion of building facade repairs and removal
of sidewalk sheds.
Section three of the bill adds a new title 7 to Article 4 of the real
property tax law, which creates a property tax abatement for the timely
completion of facade repair and removal of sidewalk sheds. If an eligi-
ble property owner completes facade repairs and removes associated side-
walk sheds within four months of installation, they will be eligible for
an abatement equal to 50% of their property tax burden or 50% of the
cost of the project, whichever is less. The level of abatement decreases
by five percentage points with each additional month the sidewalk shed
stays up, and the property is ineligible for abatement if a sidewalk
shed remains stays up for more than 12 months.
Section three also establishes penalties for the failure to complete
facade repairs and remove associated sidewalk sheds on a timely basis.
If a property owner fails to complete repairs and remove sidewalk sheds
within 18 months, they will be subject to a penalty equal to 10% of
property taxes due on the property, plus 2% for each additional month,
not to exceed an annual penalty of 25% of property taxes due on the
property.
Section three also establishes processes for applying for the abatement
and for disputing penalties, including when delays are outside the
control of a building owner.
Section four of the bill relates to the effective date.
 
JUSTIFICATION:
Local law 11 of 1998 mandates the inspection and repair of facade s of
buildings over 6 stories in the City of New York. These requirements and
their predecessors came in response to documented negligence by building
owners that resulted in tragic and preventable deaths. An unintended
consequence of these requirements, however, has been the proliferation
of sidewalk sheds (commonly referred to as "scaffolding," although scaf-
folding is, more specifically comprehensive covering of a building's
facade). Half of New York City's scaffolding-totaling 900,000 feet, or
170 miles' worth-is attributable to the requirements of Local Law 11.
Because the cost of doing required repairs generally exceeds the cost of
leaving sidewalk sheds in place, less conscientious building owners
often delay making or completing repairs, sometimes for years. In addi-
tion, building owners that do not proactively complete repairs and are
forced to put up scaffolding immediately upon the finding of an unsafe
condition, may encounter delays in lining up financing, contractors, and
materials necessary for repairs to begin - sidewalk sheds up, and no
work happening, all the while.
For residents and businesses owners on scaffolded blocks, sidewalk sheds
are a costly eyesore. They plunge formerly sun-drenched sidewalks into
shadow and deter customers. According to one study commissioned by New
York City, sidewalk sheds could cost businesses between $4,000 and
$9,500 each month. In extreme cases, scaffolding boards provide shelter
for drug-dealing and other illegal activity by reducing light and foot
traffic. The Upper West Side is uniquely plagued by sidewalk sheds. In
April 2024, it was reported that on one stretch of West End Avenue,
between W. 107th St. and W. 72nd St., there were 57 sidewalk sheds, the
most per-block in the entire City.
Recognizing that facade repairs are both necessary and costly, this
legislation aims to reward good actors by relieving the financial burden
of facade repairs when they are completed, and sidewalk sheds are
removed, quickly. These include building owners who proactively repair
their facades before unsafe conditions arise, and as a result can coor-
dinate the timing of repairs to minimize the time that sidewalk sheds
are in place; and building owners who otherwise go to the expense of
expeditious completion of facade repairs. Conversely, the bill penalizes
building owners who leave sidewalk sheds up for more than eighteen
months, unless the delays are the result of factors outside the owner's
control.
By rewarding good actors and punishing negligence, this legislation will
reduce the scourge of scaffolding and improve the quality of life in New
York City while still ensuring that buildings are maintained in a state
of good repair.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.