Bill Text: NY A05342 | 2023-2024 | General Assembly | Amended
Bill Title: Establishes an accessory dwelling unit incentive program to encourage the creation of accessory dwelling units; includes accessory dwelling units in the definition of the term housing accommodations in the human rights law; provides for a temporary property tax exemption on the increase in value of property resulting from the addition of an accessory dwelling unit.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced) 2024-01-03 - referred to housing [A05342 Detail]
Download: New_York-2023-A05342-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5342--A 2023-2024 Regular Sessions IN ASSEMBLY March 7, 2023 ___________ Introduced by M. of A. EPSTEIN, BURDICK -- read once and referred to the Committee on Housing -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property law, in relation to establishing an accessory dwelling unit incentive program; to amend the executive law, in relation to including an accessory dwelling unit in the term hous- ing accommodations in the human rights law; and to amend the real property tax law, in relation to providing a tax exemption on the increase in value of property resulting from the addition of an acces- sory dwelling unit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property law is amended by adding a new article 16 2 to read as follows: 3 ARTICLE 16 4 ACCESSORY DWELLING UNITS 5 Section 480. Definitions. 6 481. Accessory dwelling unit incentive program and local laws. 7 482. Low- and moderate-income homeowners program. 8 § 480. Definitions. As used in this article, unless the context other- 9 wise requires, the following terms shall have the following meanings: 10 1. "Accessory dwelling unit" shall mean an attached or a detached 11 residential dwelling unit that provides complete independent living 12 facilities for one or more persons which is located on a lot with a 13 proposed or existing primary residence and shall include permanent 14 provisions for living, sleeping, eating, cooking, and sanitation on the 15 same lot as the single-family or multi-family dwelling. 16 2. "Local government" shall mean a city, town or village. 17 3. "Low-income homeowners" shall mean homeowners with an income, 18 adjusted for family size, not exceeding eighty percent of the area medi- 19 an income. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09847-04-3A. 5342--A 2 1 4. "Moderate-income homeowners" shall mean homeowners with an income, 2 adjusted for family size, not exceeding one hundred twenty percent of 3 the area median income as defined by the division. 4 5. "Nonconforming zoning condition" shall mean a physical improvement 5 on a property that does not conform with current zoning standards. 6 6. "Proposed dwelling" shall mean a dwelling that is the subject of a 7 permit application and that meets the requirements for permitting. 8 7. "Division" shall mean the New York state division of housing and 9 community renewal. 10 § 481. Accessory dwelling unit incentive program and local laws. 1. 11 Within one hundred eighty days of the effective date of this article, 12 the division shall establish an opt-in program for local governments who 13 already have or who enact a local law or ordinance that meets the 14 requirements of subdivision two of this section which encourages the 15 creation of accessory dwelling units. A local government shall have five 16 years from the date such program is established to enact such local law 17 or ordinance to qualify for the program. 18 2. (a) To qualify for the program established pursuant to subdivision 19 one of this section, a local law or ordinance shall: 20 (i) Designate areas within the jurisdiction of the local government 21 where accessory dwelling units shall be permitted. Designated areas 22 shall include all areas zoned for single-family or multi-family residen- 23 tial use, and all lots with an existing residential use. 24 (ii) Provide for protections for existing illegal accessory dwelling 25 units to aid in the conversion of such units to become legal and in 26 compliance with state and local regulations, including but not limited 27 to: (1) a mechanism for the conversion of an illegal accessory dwelling 28 unit to be a legal unit, provided such unit is in compliance with all 29 applicable fire and safety codes; and (2) protections for tenants of 30 illegal accessory dwelling units from unreasonable rent increases. 31 (iii) Provide for a streamlined approval process involving no more 32 than one meeting with the applicable approving authority, and limiting 33 the cost of any necessary applications and permits to a total of five 34 hundred dollars. 35 (iv) Provide that sewer and septic hookups shall be governed under the 36 applicable existing local requirements. 37 (b) A qualifying local law or ordinance may: 38 (i) Require owner occupancy in either the primary or accessory dwell- 39 ing unit. 40 (ii) Set a minimum lease duration for accessory dwelling units. 41 (iii) Limit the total build out to the existing allowable square-foot- 42 under-floor ratio and lot coverage, consistent with existing setback for 43 other accessory uses. 44 (iv) Set minimum or maximum size limits for an accessory dwelling 45 unit. 46 (c) To qualify for the program established pursuant to subdivision one 47 of this section, a local law or ordinance shall not: 48 (i) Impose an off-street parking requirement on an accessory dwelling 49 unit, except where no adjacent public street permits year-round 50 on-street parking and the accessory dwelling unit is greater than one- 51 half mile from a subway stop, rail station or bus stop. For purposes of 52 this subparagraph, an adjacent public street shall be considered as 53 permitting year-round on-street parking notwithstanding rules that 54 prohibit parking during limited hours or on certain days of the week. 55 (ii) Impose undue or unnecessary fire and safety codes on accessory 56 dwelling units.A. 5342--A 3 1 (iii) Require more than one point of exterior access by door to an 2 accessory dwelling unit. 3 3. To opt-in to the program established pursuant to subdivision one of 4 this section a local government shall submit a copy of its local law or 5 ordinance to the division. Within ninety days of receipt of a local 6 government's law or ordinance, the division shall submit written find- 7 ings to the local government as to whether the local government's local 8 law or ordinance qualifies for the program. 9 4. All local governments who opt-in to the program and are determined 10 by the division to have a qualifying local law or ordinance shall be 11 eligible for a ten percent increase of points on such local government's 12 consolidated funding application, a ten percent increase in aid and 13 incentives for municipalities and aid and incentives for municipalities 14 related payments, increased eligibility for individual infrastructure, 15 transportation, parks, and economic development grants. 16 § 482. Low- and moderate-income homeowners program. 1. Within one 17 hundred eighty days of the effective date of this article, the division 18 shall establish a lending program to assist low-income homeowners and 19 moderate-income homeowners in securing financing for the creation of 20 accessory dwelling units. 21 2. An accessory dwelling unit financed with the assistance of such 22 program shall, if such assistance is in the form of a forgivable grant 23 at a below-market rate for a period of no less than thirty years and if 24 any such assistance is in the form of a repayable loan, be offered for 25 rent at a below-market rate for a period of fifteen years. 26 3. Such program shall be funded through capital projects appropri- 27 ations and reappropriations set forth in the state fiscal year housing 28 program. 29 4. Within one hundred eighty days of the effective date of this arti- 30 cle, the division shall establish a program to provide technical assist- 31 ance to all homeowners seeking to create an accessory dwelling unit, and 32 to protect tenants of accessory dwelling units against discrimination, 33 unreasonable rent increases and unwarranted evictions. 34 5. An accessory dwelling unit financed with the assistance of such 35 program shall be limited to an annual maximum rent increase of the lower 36 of (a) three percent or (b) one and one-half times the annual percentage 37 change in the consumer price index for the region in which the accessory 38 dwelling unit is located. 39 6. The division shall promulgate program criteria and guidelines 40 necessary to carry out such program. 41 § 2. Section 292 of the executive law is amended by adding a new 42 subdivision 42 to read as follows: 43 42. The term "housing accommodation" as used in this article shall 44 include an accessory dwelling unit as defined in subdivision one of 45 section four hundred eighty of the real property law. 46 § 3. Paragraph (a) of subdivision 1 of section 296 of the executive 47 law, as separately amended by chapters 202 and 748 of the laws of 2022, 48 is amended to read as follows: 49 (a) For an employer or licensing agency, because of an individual's 50 age, race, creed, color, national origin, citizenship or immigration 51 status, sexual orientation, gender identity or expression, military 52 status, sex, disability, predisposing genetic characteristics, familial 53 status, marital status, or status as a victim of domestic violence, to 54 refuse to hire or employ or to bar or to discharge from employment such 55 individual or to discriminate against such individual in compensation or 56 in terms, conditions or privileges of employment. In the case of anA. 5342--A 4 1 accessory dwelling unit as defined in subdivision one of section four 2 hundred eighty of the real property law, the exemption from the 3 provisions of this paragraph for the rental of a housing accommodation 4 in a building which contains housing accommodations for not more than 5 two families living independently of each other, if the owner resides in 6 one of such accommodations, shall not apply. 7 § 4. The real property tax law is amended by adding a new section 8 421-p to read as follows: 9 § 421-p. Exemption of capital improvements to residential new 10 construction involving the creation of accessory dwelling units. 1. 11 Residential buildings reconstructed, altered, improved, or newly 12 constructed in order to create one or more additional residential dwell- 13 ing units on the same parcel as a pre-existing residential building to 14 provide independent living facilities for one or more persons subsequent 15 to the effective date of a local law or resolution enacted pursuant to 16 this section shall be exempt from taxation and special ad valorem levies 17 to the extent provided hereinafter. After a public hearing, the govern- 18 ing board of a county, city, town or village may adopt a local law and a 19 school district, other than a school district subject to article fifty- 20 two of the education law, may adopt a resolution to grant the exemption 21 authorized pursuant to this section. A copy of such local law or resol- 22 ution shall be filed with the commissioner and the assessor of such 23 county, city, town or village who prepares the assessment roll on which 24 the taxes of such county, city, town, village or school district are 25 levied. 26 2. (a) Such buildings shall be exempt for a period of five years to 27 the extent of one hundred per centum of the increase in assessed value 28 thereof attributable to such reconstruction, alteration, improvement, or 29 new construction for such additional residential unit or units that 30 provide independent living facilities for one or more persons, and for 31 an additional period of five years subject to the following: 32 (i) The extent of such exemption shall be decreased by twenty-five per 33 centum of the "exemption base" for each of the first three years during 34 such additional period and shall be decreased by a further ten per 35 centum of the "exemption base" during each of the final two years of 36 such additional period. The exemption shall expire at the end of the 37 extended period. The "exemption base" shall be the increase in assessed 38 value as determined in the initial year of the term of the exemption, 39 except as provided in subparagraph (ii) of this paragraph. 40 (ii) In any year in which a change in level of assessment of fifteen 41 percent or more is certified for a final assessment roll pursuant to the 42 rules of the commissioner, the exemption base shall be multiplied by a 43 fraction, the numerator of which shall be the total assessed value of 44 the parcel on such final assessment roll (after accounting for any phys- 45 ical or quantity changes to the parcel since the immediately preceding 46 assessment roll), and the denominator of which shall be the total 47 assessed value of the parcel on the immediately preceding final assess- 48 ment roll. The result shall be the new exemption base. The exemption 49 shall thereupon be recomputed to take into account the new exemption 50 base, notwithstanding the fact that the assessor receives certification 51 of the change in level of assessment after the completion, verification 52 and filing of the final assessment roll. In the event the assessor does 53 not have custody of the roll when such certification is received, the 54 assessor shall certify the recomputed exemption to the local officers 55 having custody and control of the roll, and such local officers are 56 hereby directed and authorized to enter the recomputed exemption certi-A. 5342--A 5 1 fied by the assessor on the roll. The assessor shall give written notice 2 of such recomputed exemption to the property owner, who may, if he or 3 she believes that the exemption was recomputed incorrectly, apply for a 4 correction in the manner provided by title three of article five of this 5 chapter for the correction of clerical errors. 6 (iii) Such exemption shall be limited to two hundred thousand dollars 7 in increased market value of the property attributable to such recon- 8 struction, alteration, improvement, or new construction and any increase 9 in market value greater than such amount shall not be eligible for the 10 exemption pursuant to this section. For the purposes of this section, 11 the market value of the reconstruction, alteration, improvement, or new 12 construction as authorized by subdivision one of this section shall be 13 equal to the increased assessed value attributable to such recon- 14 struction, alteration, improvement, or new construction divided by the 15 class one ratio in a special assessing unit or the most recently estab- 16 lished state equalization rate or special equalization rate in the 17 remainder of the state, except where the state equalization rate or 18 special equalization rate equals or exceeds ninety-five percent, in 19 which case the increase in assessed value attributable to such recon- 20 struction, alteration, improvement, or new construction shall be deemed 21 to equal the market value of such reconstruction, alteration, improve- 22 ment, or new construction. 23 (b) No such exemption shall be granted for reconstruction, alter- 24 ations, improvements, or new construction unless: 25 (i) such reconstruction, alteration, improvement, or new construction 26 was commenced subsequent to the effective date of the local law or 27 resolution adopted pursuant to subdivision one of this section; and 28 (ii) the value of such reconstruction, alteration, improvement, or new 29 construction exceeds three thousand dollars; and 30 (iii) such reconstruction, alteration, improvement, or new 31 construction created one or more additional residential dwelling units 32 on the same parcel as the pre-existing residential building to provide 33 independent living facilities for one or more persons. 34 (c) For purposes of this section the terms reconstruction, alteration, 35 improvement, and new construction shall not include ordinary maintenance 36 and repairs. 37 3. Such exemption shall be granted only upon application by the owner 38 of such building on a form prescribed by the commissioner. The applica- 39 tion shall be filed with the assessor of the city, town, village or 40 county having the power to assess property for taxation on or before the 41 appropriate taxable status date of such city, town, village or county. 42 4. If satisfied that the applicant is entitled to an exemption pursu- 43 ant to this section, the assessor shall approve the application and such 44 building shall thereafter be exempt from taxation and special ad valorem 45 levies as herein provided commencing with the assessment roll prepared 46 on the basis of the taxable status date referred to in subdivision three 47 of this section. The assessed value of any exemption granted pursuant to 48 this section shall be entered by the assessor on the assessment roll 49 with the taxable property, with the amount of the exemption shown in a 50 separate column. 51 5. For the purposes of this section, a residential building shall mean 52 any building or structure designed and occupied exclusively for residen- 53 tial purposes by not more than two families. 54 6. In the event that a building granted an exemption pursuant to this 55 section ceases to be used primarily for residential purposes, or titleA. 5342--A 6 1 thereto is transferred to other than the heirs or distributees of the 2 owner, the exemption granted pursuant to this section shall cease. 3 7. (a) A county, city, town or village may, by its local law, or 4 school district, by its resolution: 5 (i) reduce the per centum of exemption otherwise allowed pursuant to 6 this section; and 7 (ii) limit eligibility for the exemption to those forms of recon- 8 struction, alterations, improvements, or new construction as are 9 prescribed in such local law or resolution. 10 (b) No such local law or resolution shall repeal an exemption granted 11 pursuant to this section until the expiration of the period for which 12 such exemption was granted. 13 § 5. This act shall take effect immediately; provided however, that 14 section four of this act shall apply to assessment rolls based on taxa- 15 ble status dates occurring on or after such effective date.
