Unit owners can breathe a sigh of (tax) relief

New York State Capitol in Albany (Flickr photo by Jimmy Emerson)

Although there was little doubt that lawmakers would act, it is nice to know that the New York State Assembly finally passed an Omnibus Housing Bill on Monday following Senate action last week.

The legislation restores for three years the expired tax abatement that was created to equalize the tax burdens between single-family homeowners and owners of co-ops and condos.

It also extends for the same period the J-51 program, which provides a tax benefit for the renovation of existing housing.

However, the legislation eliminates benefits for the conversion of commercial space to residential use and limits the eligibility for condominium and cooperative buildings with units that have an average assessed value per unit is  greater than $30,000.  Excepted are projects that receive “substantial” government assistance.

Certain provisions of the 421a program were amended as well so as to encourage new residential development in  some high-density areas of Midtown and Downtown Manhattan.

Draft tax abatement bill reduces past decreases

Although legislation has been drafted to extended tax abatements for apartment owners, there are changes that residents may not have been expecting.

It has been widely reported that the legislature is expected to go into special session later this year to vote on the co-op/condo abatement, the J-51 program and a technical amendment for 421a tax benefits, which are aimed at encouraging new residential development in high-density districts in Midtown as well as in downtown Manhattan.

But only when I received an e-mail from the Real Estate Board of New York (REBNY) did I notice details that affect many residents of the Big Apple.