NY State Omnibus Housing Bill Recently Updated
Governor Cuomo recently signed an Omnibus Housing Bill passed by the State Legislature.
Important changes in the updated legislation include but are not limited to:
Coop-condo abatement program has been extended to June 30, 2019
421a partial tax exemption program has been extended to June 15, 2019. Some important changes include:
- The market rate units built under the new program are not covered by rent regulations if their initial rent or legal rent on vacancy exceeds the then vacancy decontrol amount
- The new program does not contain the underutilization test or the maximum rent test
- Commencement date has been redefined for both the new program and the current program. Commencement date is defined as the date upon which excavation and construction of initial footings and foundations lawfully begins in good faith. A full building permit is not required
- Affordable units shall share the same common entrances and common areas as the market rate units, and shall not be isolated to a specific floor or area of the building (i.e., no more “poor doors”)
- The new fee for the 421a application is $3,000 per apartment
Rent regulations have been extended to June 15, 2019. The legal rent for high rent and high income, high rent deregulation has been increased to $2,700. Beginning January 1, 2016 and annually thereafter, the maximum legal regulated rent for the deregulation threshold shall be increased by the same percentage as the most recent one-year renewal adjustment adopted by the rent guidelines board
J51 deadline for completion of renovation projects has been extended to June 30, 2019
- The Industrial and Commercial Abatement Program (ICAP) which provides tax incentives for renovation and new construction was extended for two years, allowing applications to be filed until March 1, 2019
- The Relocation and Employment Assistance Program (REAP) which provides tax credits of $3,000 per eligible employee per year was extended to June 30, 2017
- The Commercial Revitalization Program (CRP) which includes a real property tax benefit to tenants, as well as the Commercial Rent Tax (CRT) exemption and the Energy Savings Program, was extended for two years.