Relates to establishing ground rent rebates for eligible homeowners and renters in the Battery Park project area; provides for a rebate program; provides for a process for application and certification.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4537A
SPONSOR: Fall TITLE OF BILL:
An act to amend the public authorities law, in relation to establishing
ground rent rebates for eligible homeowners and renters in the Battery
Park project area
SUMMARY OF SPECIFIC PROVISIONS::
Section 1 of the bill amends section 1974-b of the public authorities
law to add a new subdivision 3. Paragraph a of the new subdivision
defines five key terms. "Eligible homeowner" is defined as an owner of a
residence in BPC who occupies their home as their primary residence and
whose annual household income does not exceed 150% of the area median
income, adjusted for household size. "Eligible renter" is defined as a
renter in BPC who occupies a rental unit that is designated a quasi-rent
stabilized unit or has a restriction on annual rent increases under a
regulatory agreement between the landlord and the BPCA, and whose annual
household income does not exceed 150% of the area median income,
adjusted for household size. "Rebate base year" is defined as 2025 or
the year preceding the year in which a homeowner or renter first becomes
income eligible. "Homeowner's ground rent" is defined as the portion of
a homeowner's building's ground rent attributable to the homeowner's
occupancy of their primary residence. "Renter's ground rent" is defined
as the portion of a renter's rent payment attributable to the ground
rent for the occupancy of their unit as their primary residence.
Paragraph b of the new subdivision would direct the BPCA to offer to
each eligible homeowner and renter a rebate of the portion of their
ground rent equal to the difference between the amount of the homeown-
er's or renter's ground rent due in the base year and the amount due and
paid in the year for which the eligible homeowner or renter applies for
the rebate. This paragraph also directs the BPCA to permit eligible
homeowners and renters to certify that they expect to meet eligibility
criteria in the next succeeding year. Paragraph c of the new subdivision
states that the BPCA shall promulgate procedures for the rebate program
within 180 days of the effective date of the subdivision.
Section 2 of the bill sets forth the effective date.
JUSTIFICATION::
Located in Lower Manhattan on the West Side, Battery Park City (BPC) is
a dense, mixed residential and commercial neighborhood. Over time, rapid
escalation of property values in the area have made it increasingly
difficult for many residents to continue to afford to live there, espe-
cially low-, moderate-, and middle-income residents who first moved to
BPC when the neighborhood was affordable and who helped build BPC into
the community it is today. This legislation will promote the housing
stability and affordability for income-eligible primary residents who
own or rent their home in BPC.
Like most property leases, ground rent in Battery Park City increases
over time. The initial ground tease agreements included provisions that
reset a building's ground rent to the BPCA at a new amount that is
calculated at 60 of the property's fair market value at the time of the
reset. Under the provisions of the initial agreements, the reset would
happen every 15 years. While there are ongoing efforts to renegotiate
the provisions of various buildings' ground leases, there is a need to
ensure that tow-, moderate, and middle-income homeowners and renters
have effective protections from unaffordable increases that might
continue to be generally applicable to their buildings. To ensure that
long-time BPC residents who have contributed to the flourishing of the
neighborhood can afford to remain in their homes, this bill would freeze
the ground rent obligations for primary resident homeowners who have an
annual income at or below 150% of area median income. For renters, this
bill would freeze the portion of a renter's rent payment attributable to
ground rent for primary resident renters who live in designated quasir-
ent stabilized units or have restrictions on annual rent increases under
a regulatory agreement. Any amount above the fr ozen ground rent would
be credited back to qualifying homeowners and renters via a rebate.
LEGISLATIVE HISTORY::
01/03/24 referred to corporations, authorities and commissions
FISCAL IMPLICATIONS::
To be determined.
EFFECTIVE DATE::
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
4537--A
2025-2026 Regular Sessions
IN ASSEMBLY
February 4, 2025
___________
Introduced by M. of A. FALL, LEE, GLICK -- read once and referred to the
Committee on Corporations, Authorities and Commissions -- recommitted
to the Committee on Corporations, Authorities and Commissions in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the public authorities law, in relation to establishing
ground rent rebates for eligible homeowners and renters in the Battery
Park project area
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1974-b of the public authorities law is amended by
2 adding a new subdivision 3 to read as follows:
3 3. (a) For purposes of this subdivision: (i) "eligible homeowner"
4 shall mean an owner of a residence located in the Battery Park project
5 area who occupies such residence as the homeowner's primary residence
6 and whose annual household income does not exceed one hundred fifty
7 percent of the area median income defined and calculated by the United
8 States department of housing and urban development for the New York city
9 region, adjusted for household size; (ii) "eligible renter" shall mean a
10 person whose primary residence is located in the Battery Park project
11 area and is designated a quasi-rent stabilized unit or has restrictions
12 on annual rent increases pursuant to a regulatory agreement between the
13 authority and the landlord, and whose annual household income does not
14 exceed one hundred fifty percent of the area median income defined and
15 calculated by the United States department of housing and urban develop-
16 ment for the New York city region; (iii) "rebate base year" shall mean
17 the year two thousand twenty-five for any homeowner who is an eligible
18 homeowner or any renter who is an eligible renter based upon their annu-
19 al household income for the year two thousand twenty-six, or the year
20 preceding the year in which a homeowner first becomes an eligible home-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04155-02-6
A. 4537--A 2
1 owner or a renter first becomes an eligible renter; in the event a
2 previously eligible homeowner or a previously eligible renter becomes
3 ineligible because the homeowner's or renter's household income exceeds
4 one hundred fifty percent of the area median income for two consecutive
5 years, the rebate base year shall be reset to be the year preceding any
6 subsequent year in which the homeowner or renter again becomes eligible;
7 (iv) "homeowner's ground rent" shall mean the portion of a homeowner's
8 building's ground rent attributable to the homeowner's occupancy of the
9 homeowner's primary residence and paid by the homeowner to the authority
10 under the building's residential sublease to the lease between the city
11 of New York and the authority, dated November twenty-four, nineteen
12 hundred sixty-nine and recorded December twenty-six, nineteen hundred
13 sixty-nine on page one of reel one hundred sixty-one, and any subsequent
14 amendments; and (v) "renter's ground rent" shall mean the portion of a
15 renter's rent payment attributable to the ground rent based on the
16 renter's occupancy of their primary residence and paid by the landlord
17 to the authority under the building's residential sublease to the lease
18 between the city of New York and the authority, dated November twenty-
19 four, nineteen hundred sixty-nine and recorded December twenty-six,
20 nineteen hundred sixty-nine on page one of reel one hundred sixty-one,
21 and any subsequent amendments.
22 (b) Notwithstanding any provision of law to the contrary, the authori-
23 ty shall offer to each eligible homeowner and eligible renter a rebate
24 of the portion of such homeowner's or renter's ground rent equal to the
25 difference between the amount of such homeowner's or renter's ground
26 rent due in the rebate base year and the amount of the homeowner's or
27 renter's ground rent due and paid in the year for which the eligible
28 homeowner or eligible renter applies for the rebate. If the authority
29 determines a homeowner to be an eligible homeowner or a renter to be an
30 eligible renter for a given year, the authority shall permit such eligi-
31 ble homeowner or eligible renter to certify that they expect to meet the
32 eligibility criteria in the next succeeding year; upon reviewing such
33 certification and finding that such homeowner or renter is likely to be
34 an eligible homeowner or eligible renter in such next succeeding year,
35 the authority shall, to the extent practicable, offer a proportional
36 share of the expected annual rebate in the form of a periodic rebate or
37 discount during the year for which the homeowner or renter is expected
38 to be eligible.
39 (c) Within one hundred eighty days of the effective date of this
40 subdivision, the authority shall promulgate procedures for applying for
41 such rebate, and set standards for reviewing applications and certif-
42 ications, assessing the accuracy of any information necessary to deter-
43 mine eligibility, and making payments to applicants found to be eligible
44 and those expected to be eligible in the next succeeding year.
45 § 2. This act shall take effect immediately.
