NY State Renews Coop/Condo Abatement
The
New York State Legislature passed an Omnibus Housing bill yesterday
that renews the coop/condo abatement and J-51 programs and
amends the certain provisions of the 421a program.
REBNY worked vigorously over the last six months for the early passage of this legislation which was agreed to at the end of the
2012 legislative session.
The bill was sent to the Governor today for his signature which is required for the bill to become law.
A brief explanation of the bill’s provisions is below.
Coop/Condo Abatement
The
coop/condo abatement would be extended for three years. However, to be
eligible for the abatement, the unit must be the primary
residence of the unit owner. A unit owner may still receive an
abatement for up to three units, provided they are in the same building
and one of the units is the owner’s primary residence. In addition, the
thresholds for an abatement were modified as described
below.
Average AV:
|
≤$50,000
|
$50,000-$55,000
|
$55,000-$60,000
|
>$60,000
|
FY2012
|
25%
|
22.5%
|
20%
|
17.5%
|
FY2013
|
26.5%
|
23.8%
|
21.2%
|
17.5%
|
FY2014
|
28.1%
|
25.2%
|
22.5%
|
17.5%
|
For
non-primary residence coops/condos where the unit received an abatement
in FY2011 the abatement will phase out according to the
schedule below.
Average AV:
|
≤$15,000
|
>$15,000
|
FY2012
|
12.5%
|
8.75%
|
FY2013
|
6.25%
|
4.375%
|
FY2014
|
0%
|
0%
|
J-51
The
J-51 program, which provides a tax benefit for the renovation of
existing housing, would be extended three years. However, the
amendments would eliminate benefits for the conversion of commercial
space to residential use and limit the eligibility for condominium and
cooperative buildings with units whose average assessed value per unit
is >$30,000.
However, projects that receive “substantial government
assistance,” which is defined to include city, state, or federal loans
or grants, are not subject to this cap.
Likewise, conversion projects receiving substantial government assistance would be eligible for J-51 benefits.
421a
The
amendments to 421a would encourage new residential development in high
density 15 FAR districts in Midtown and Downtown Manhattan.
In the modification to the program in 2007, the renewal of this
separate provision was accidentally omitted.
This amendment was intended to restore the benefits that have been part of the program since 1993.
In addition the bill restores flexibility in the completion of
construction provisions that are crucial to the resumption of stalled
housing projects.
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