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. Continue reading