BILL NUMBER: S9416
SPONSOR: CHAN
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to increasing the
number of units subject to an assessment cap
 
PURPOSE:
To expand eligibility for assessment limitations for certain class two
residential properties within special assessing units.
 
SUMMARY OF PROVISIONS:
Section 1 amends the opening paragraph of subdivision 2 of section 1805
of the real property tax law to change the eligibility threshold for
certain class two properties subject to annual and five-year assessment
increase limitations. The bill modifies the definition to apply to
parcels classified in class two with fewer than thirty-five residential
units rather than fewer than eleven residential units.
Section 2 provides that the act shall take effect immediately.
 
JUSTIFICATION:
Under Real Property Law section 1805 (2), class 2 properties with 10 or
fewer units are subject to caps on how much their assessed value
increases to 8% per year or 30% over a five-year period. This bill would
expand the applicability of this law to include buildings with 35 or
fewer units. These buildings are subject to pressure from increasing
costs for real property taxes, insurance, regulatory and frozen rents.
It is critical to ensure that smaller buildings are preserved and able
to maintain safe living conditions for tenants. Smaller buildings do
not have the scale to absorb escalating costs. This bill recognizes
that reality and provides some assistance to these buildings by provid-
ing for the caps on their assessments.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9416: 1805 real property tax law, 1805(2) real property tax law