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. Continue reading →
A wonderful development occurred today for prospective home buyers in the form of legislation passed by both the House and the Senate.
Attached to a bill extending unemployment benefits, the measure is great news for both first-time and other home buyers. The White House says that President Obama will sign the legislation tomorrow.
The new law will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30 and closed by June 30. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence.
Individuals who already own a home can claim the $6,500 tax credit if they have been living in their principal residence for five consecutive years out of the last eight.
Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised from $75,000 to $125,000 for individuals and by $75,000 to $225,000 for married couples.