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A04941 Summary:

BILL NOA04941B
 
SAME ASSAME AS S04040-A
 
SPONSORThiele
 
COSPNSRPalumbo
 
MLTSPNSR
 
Add §64-k, Town L; amd §§1449-bb & 1449-ee, Tax L
 
Authorizes towns in the Peconic Bay region to establish community housing funds to be funded by a supplemental real estate transfer tax; defines terms; outlines eligible expenses; establishes an advisory board in any town which has established a community housing fund to review and make recommendations regarding the town's community housing plan; makes related provisions.
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A04941 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4941B
 
SPONSOR: Thiele
  TITLE OF BILL: An act to amend the town law and the tax law, in relation to authorizing towns in the Peconic Bay region to establish community housing funds to be funded by a supplemental real estate transfer tax   PURPOSE OR GENERAL IDEA OF BILL: Authorizing towns in the Peconic Bay region to establish a community housing funds to be funded by a supple- mental real estate transfer tax   SUMMARY OF SPECIFIC PROVISIONS: Section 1. Legislative Findings Section 2. Cites the Peconic Bay Region Community Housing Act Section 3. Amends the Town Law by adding a new Section 64-k relating to the Peconic Bay Region Community Housing Act for the towns of East Hamp- ton, Riverhead, Shelter Island, Southampton and Southold. Section 4. Section 1449-bb of the Tax Law is amended to authorize each town within the Peconic Bay region, acting through its own board, to adopt a local law imposing a supplemental real estate transfer tax for the sole purpose of funding an established community housing fund Section 5. Subdivision 3 of Section 1449-ee of the Tax Law is amended to provide for certain exemptions from the supplemental real estate trans- fer tax Section 6. Amends subparagraph 1 of paragraph (a) of subdivision 4 of Section 1449-ee to increase the purchase price limit for the exemption for first-time homebuyers in the towns of East Hampton, Southampton and Shelter Island from 120% to 150% of the purchase price limit defined by the State of New York Mortgage Agency (SONYMA). Section 7. Severability Clause Section 8. Provides for an immediate effective date and shall remain in full force and effect until December 31, 2050, when upon such date the provisions of Sections four and five of this act shall expire and be deemed repealed.   JUSTIFICATION: The adverse impact resulting from the lack of housing opportunities is severe. Local employers are having difficulty hiring and retaining employees because of housing costs and availability. Local volunteer emergency services agencies are experiencing difficulty in recruitment and retention. Long-time residents are forced to leave the area. Traffic congestion is intensified by the importation of labor from areas with lower housing costs. Finally, the lack of housing opportunities is resulting in residents being forced to live in substandard, illegal conditions. The unique demographics and economics in the Peconic Bay region and a lack of affordable dwelling units are contributing to this housing shor- tage. The combination of the Peconic Bay region's attractiveness, prox- imity to the dense population of the New York metropolitan region, and to that region's extraordinary wealth, makes the Peconic Bay region a prime location for seasonal and luxury homes. While this combination of extraordinary attractiveness, population density and wealth has created a strong local economy for the Peconic Bay region, it has resulted in a housing crisis for local families. In the Peconic Bay region, more than 40% of all housing units are seasonal. In summary, the demand of land for luxury and seasonal homes and seasonal rentals has left a short supply of housing opportunities for moderate income and working class local residents. The implementation of the new Federal tax bill will only exacerbate this problem by making it more difficult for first-time homebuyers by imposing a $10,000 cap on the deductibility of state and local taxes and by reducing the mortgage interest deduction on new mortgages. The Peconic Bay region requires a balanced housing policy where there exists a variety of housing types and opportunities across the region's economic spectrum. It is the public purpose of this legislation, to give the towns of the Peconic Bay region the authority and resources needed to establish a dedicated fund to provide needed housing opportunities. Specifically, this legislation would permit each town to establish a community housing fund to increase housing opportunities in the region. Further, a town housing plan adhering to smart growth principles would be required to be approved and implemented to ensure that these new housing opportunities are enacted in the context of a comprehensive plan. The funds shall enacted by local law subject to a mandatory referendum. Said fund would be financed by a combination of state and local funds, including a 0.5% supplemental real estate transfer tax, which would be an addition to the existing 2% real estate transfer tax for the Peconic Bay Region Community Preservation Fund.   PRIOR LEGISLATIVE HISTORY: 2019: New Legislation FISCAL IMPLICATIONS: To be determined   EFFECTIVE DATE: This act shall take effect immediately; provided, however, that the amendments to Section 1449-bb of the Tax Law and subdivision 3 of Section 1449-ee of the Tax Law, made by Sections 4 and 5 of this act, respectively, shall not affect the repeal of such sections and shall be deemed to be repealed therewith.
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A04941 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4941--B
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 5, 2019
                                       ___________
 
        Introduced  by M. of A. THIELE, PALUMBO -- read once and referred to the
          Committee on Local Governments -- committee discharged, bill  amended,
          ordered  reprinted  as  amended  and  recommitted to said committee --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee

        AN ACT to amend the town law and the tax law, in relation to authorizing
          towns  in  the Peconic Bay region to establish community housing funds
          to be funded by a supplemental real estate transfer tax
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Legislative findings.   The legislature hereby finds that
     2  critical to the future of the Peconic Bay region  is  the  need  for  an
     3  adequate supply of housing opportunities for all segments of the Peconic
     4  Bay community.
     5    The adverse impact resulting from the lack of housing opportunities is
     6  severe.  Local  employers  are  having  difficulty  hiring and retaining
     7  employees because of housing costs  and  availability.  Local  volunteer
     8  emergency  services  agencies are experiencing difficulty in recruitment
     9  and retention.  Long-time residents are forced to leave the area.  Traf-
    10  fic  congestion  is  intensified  by the importation of labor from areas
    11  with lower housing costs.  Finally, the lack of housing opportunities is
    12  resulting in residents being forced  to  live  in  substandard,  illegal
    13  conditions.
    14    The  unique demographics and economics in the Peconic Bay region and a
    15  lack of affordable dwelling units are contributing to this housing shor-
    16  tage.  The combination of the Peconic Bay region's attractiveness, prox-
    17  imity to the dense population of the New York metropolitan region and to
    18  that region's extraordinary wealth, makes the Peconic Bay region a prime
    19  location for seasonal  and  luxury  homes.  While  this  combination  of
    20  extraordinary attractiveness, population density, and wealth has created
    21  a  strong local economy for the Peconic Bay region, it has resulted in a

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03159-13-9

        A. 4941--B                          2
 
     1  housing crisis for local families. In the Peconic Bay region, more  than
     2  40% of all housing units are seasonal.
     3    In  summary,  the  demand  of  land  for luxury and seasonal homes and
     4  seasonal rentals has left a short supply of  housing  opportunities  for
     5  moderate income and working class local residents. The implementation of
     6  the  new federal tax bill will only exacerbate this problem by making it
     7  more difficult for first time homebuyers by imposing a  $10,000  cap  on
     8  the  deductibility of state and local taxes and by reducing the mortgage
     9  interest deduction on new mortgages. The Peconic Bay region  requires  a
    10  balanced  housing  policy  where there exists a variety of housing types
    11  and opportunities across the region's economic spectrum.
    12    It is the public purpose of this legislation to give the towns of  the
    13  Peconic  Bay  region  the  authority and resources needed to establish a
    14  dedicated fund to provide needed  housing  opportunities.  Specifically,
    15  this legislation would permit each town to establish a community housing
    16  fund  to  increase  housing opportunities in the region. Further, a town
    17  housing plan adhering to smart growth principles would be required to be
    18  approved and implemented to insure that these new housing  opportunities
    19  are  enacted  in  the context of a comprehensive plan. The fund shall be
    20  enacted by local law subject to a mandatory referendum.
    21    Said fund would be financed by a combination of state and local funds,
    22  including a 0.5% supplemental real estate transfer tax, which  would  be
    23  in  addition to the existing 2% real estate transfer tax for the Peconic
    24  Bay region community preservation fund.
    25    In addition, the exemption amounts from the total real estate transfer
    26  tax would be increased to $400,000 in the  towns  of  Southampton,  East
    27  Hampton and Shelter Island and to $280,000 in the towns of Riverhead and
    28  Southold.  This will insure that in the towns of East Hampton, Southamp-
    29  ton, and Shelter Island, the real estate transfer tax  will  be  reduced
    30  from  current  law  for  property  transfers  with a consideration under
    31  $1,000,000.  The real estate transfer tax would be reduced from  current
    32  law in the towns of Southold and Riverhead for property transfers with a
    33  consideration  under $800,000. Finally, the purchase price limit for the
    34  exemption for first time homebuyers in the towns of East Hampton, South-
    35  ampton and Shelter Island would be increased from 120% to  150%  of  the
    36  purchase  price  limit defined by the state of New York mortgage agency.
    37  These amendments to the exemptions will reduce any adverse  impact  from
    38  the transfer tax on the provision of community housing.
    39    §  2.  This  act  shall  be known and may be cited as the "Peconic Bay
    40  region community housing act".
    41    § 3. The town law is amended by adding a new section 64-k to  read  as
    42  follows:
    43    § 64-k. Peconic Bay region community housing fund.  1. Definitions. As
    44  used  in  this  section,  the  following  words and terms shall have the
    45  following meanings:
    46    (a) "Peconic Bay region" means the towns of East  Hampton,  Riverhead,
    47  Shelter Island, Southampton, and Southold.
    48    (b)  "Community  housing"  means a primary residential property for an
    49  eligible individual that does not exceed one hundred  fifty  percent  of
    50  the  purchase price limits established by the state of New York mortgage
    51  agency low interest rate  loan  program  in  non-target  categories  for
    52  Suffolk county in effect on the contract date for the sale of such prop-
    53  erty.
    54    (c)  "Board"  means the advisory board created pursuant to subdivision
    55  six of this section.

        A. 4941--B                          3
 
     1    (d) "Fund" means the community housing  fund  authorized  pursuant  to
     2  subdivision two of this section.
     3    (e)  "First-time  homebuyer"  means an eligible individual who has not
     4  owned a primary residential property and is not married to a person  who
     5  has  owned  a residential property during the three-year period prior to
     6  his or her purchase of the primary residential property,  and  who  does
     7  not own a vacation or investment home.
     8    (f)  "Primary residential property" means any one or two family house,
     9  townhouse, or condominium.
    10    (g) "Eligible individual" means a household with an income  that  does
    11  not  exceed  one  hundred percent of the income limits as established by
    12  the state of New York mortgage agency low interest rate loan program  in
    13  non-target  categories for Suffolk county in effect on the contract date
    14  for the sale of such property.
    15    2. Fund authorized. The town board of any  town  in  the  Peconic  Bay
    16  region is authorized to establish by local law a community housing fund,
    17  pursuant  to  the provisions of this section. Deposits into the fund may
    18  include revenues of the local government from whatever source, including
    19  but not limited to: (a) all revenues from the supplemental  real  estate
    20  transfer  tax  authorized by subdivision two of section fourteen hundred
    21  forty-nine-bb of the tax law; (b) all proceeds from any indebtedness  or
    22  obligations issued pursuant to the local finance law for community hous-
    23  ing  opportunity  purposes  as  authorized  in subdivision three of this
    24  section; (c) general  fund  balances  or  surpluses;  (d)  any  proceeds
    25  received  by  the  local government from the sale or rental of community
    26  housing produced from revenues of the fund; (e)  the  repayment  of  any
    27  loans  issued  from  proceeds of the fund; (f) any gifts of interests in
    28  land or funds; (g) any state or federal grants received by the town  for
    29  providing affordable homes.
    30    3. Purposes of the fund. The proceeds of the fund established pursuant
    31  to  subdivision  two of this section shall be utilized for the following
    32  purposes:
    33    (a) the provision of financial assistance to first-time homebuyers who
    34  are residents of the town for the purchase of a first home.  Said finan-
    35  cial assistance may be in the form of grants or loans.
    36    (1) A town may provide financial assistance to a first-time  homebuyer
    37  who  is  a  resident  of the town or who is employed in the town for the
    38  purchase of a first home. A resident of the town shall include a  person
    39  who is currently a resident of the town or a non-resident who has been a
    40  resident within the past five years.
    41    (2)  Said  financial  assistance shall not exceed fifty percent of the
    42  purchase price of the home.
    43    (3) If said financial assistance is in the form of a loan,  said  loan
    44  shall  be  repayable to the town pursuant to the terms agreed to between
    45  the recipient and the town, provided that, at a minimum, any loan  shall
    46  be fully repaid by the recipient upon the resale of the home.
    47    (4)  For the purposes of calculating town tax liability for such prop-
    48  erty, only, the dollar  amount  of  any  financial  assistance  for  the
    49  purchase of a first home made by the town pursuant to this section shall
    50  be subtracted from the full equalized assessed value of such property.
    51    (5)  All  revenues  received  by the town from the repayment of a loan
    52  shall be deposited in the fund.
    53    (6) A town may provide financial assistance for community  housing  in
    54  conjunction  with  a  public/private  partnership  for employer assisted
    55  housing.

        A. 4941--B                          4
 
     1    (b) the actual production of community housing for  sale  to  eligible
     2  individuals by the town;
     3    (c)  the  actual  production of community housing for sale to eligible
     4  individuals in conjunction with a public/private partnership, where  the
     5  private  partner  agrees to comply with the profit guidelines of the New
     6  York state affordable housing corporation and  the  provisions  of  this
     7  section;
     8    (d)  the  actual  production  and maintenance of community housing for
     9  rental to eligible individuals either by the town or  the  town  housing
    10  authority;  or  in  conjunction with a public/private partnership, where
    11  the private partner agrees to comply with the profit guidelines  of  the
    12  New York state affordable housing corporation and the provisions of this
    13  section;
    14    (e)  the  rehabilitation  of  existing buildings and structures in the
    15  town for the purpose of conversion to  community  housing  for  sale  or
    16  rental to eligible individuals; and
    17    (f)  the  provision  of  housing counseling services by not-for-profit
    18  corporations who are authorized by the United States department of hous-
    19  ing and urban development to provide such services.
    20    4. Fund management. Interest accrued by monies deposited into the fund
    21  shall be credited to the fund. In no event shall monies  deposited  into
    22  the  fund be transferred to any other account. Nothing contained in this
    23  section shall be construed to prevent the financing in whole or in part,
    24  pursuant to the local finance law, of any purpose authorized pursuant to
    25  this section. Monies from the fund may be utilized to repay indebtedness
    26  or obligations incurred pursuant to the  local  finance  law  consistent
    27  with effectuating the purposes of this section.
    28    5.  Eligible  expenses.  For  the  purposes  of this section, eligible
    29  expenses relating to the production of community housing and  the  reha-
    30  bilitation  of  existing  buildings  and structures under the fund shall
    31  include but not be limited to land acquisition,  planning,  engineering,
    32  construction  costs,  and  other hard and soft costs directly related to
    33  the construction, rehabilitation, purchase or rental of housing pursuant
    34  to this section. All revenues received by the  town  from  the  sale  or
    35  rental  of community homes, or the repayment of loans shall be deposited
    36  in the fund.
    37    6. Advisory board established. The town  board  of  any  town  in  the
    38  Peconic Bay region which has established a community housing fund pursu-
    39  ant  to  this  section shall create an advisory board to review and make
    40  recommendations regarding the town's community housing plan required  by
    41  subdivision  seven of this section. Such board shall consist of not less
    42  than seven nor more than fifteen legal residents of the municipality who
    43  shall serve without compensation. No member  of  the  local  legislative
    44  body  shall serve on the board. The board shall include a representative
    45  of: (a) the construction industry; (b) the real estate industry; (c) the
    46  banking industry; and three representatives of local housing advocacy or
    47  human services organizations. Where a village or villages, located with-
    48  in the town, have elected to participate in the  fund,  as  provided  in
    49  subdivision  seven of this section, the board shall include at least one
    50  resident of a participating village or villages. Where an Indian  nation
    51  is  located  within the boundaries of a town, the board shall include at
    52  least one member from such nation. The board shall act  in  an  advisory
    53  capacity to the town board.
    54    7.  Adoption  of  housing plan.   (a) Before a town in the Peconic Bay
    55  region may establish the fund, the town board shall first adopt  a  town
    56  housing  plan which establishes an implementation plan for the provision

        A. 4941--B                          5
 
     1  of community housing opportunities by  the  fund.  Said  plan  shall  be
     2  adopted  by  local  law.  Such  plan shall adhere to the following smart
     3  growth principles:
     4    (1)  Public  investment. To account for and minimize social, economic,
     5  and environmental costs of  new  development,  including  infrastructure
     6  costs  such  as transportation, sewers, and wastewater treatment, water,
     7  schools, recreation, and loss of open space and agricultural land;
     8    (2) Development. To encourage development in areas  where  transporta-
     9  tion, water, and sewage infrastructure are available or practical;
    10    (3)  Conservation.  To  protect,  preserve,  and  enhance  the state's
    11  resources, including agricultural land, forests, surface waters, ground-
    12  water, recreation and open space, scenic areas, and significant historic
    13  and archeological sites;
    14    (4) Coordination. To promote coordination of state and  local  govern-
    15  ment decisions and cooperation among communities to work toward the most
    16  efficient,  planned  and  cost-effective delivery of government services
    17  by, among other means, facilitating cooperative agreements  among  adja-
    18  cent  communities, and to coordinate planning to ensure compatibility of
    19  one's community development with development of neighboring communities;
    20    (5) Community design. To strengthen  communities  through  development
    21  and  redevelopment strategies that include integration of all income and
    22  age groups, mixed land uses, and compact development, traditional neigh-
    23  borhood development, planned unit  development,  open  space  districts,
    24  downtown  revitalization,  brownfield  redevelopment, enhanced beauty in
    25  public spaces, and diverse and community housing in close  proximity  to
    26  places of employment, recreation, and commercial development;
    27    (6)  Transportation.  To  provide  transportation  choices,  including
    28  increasing public transit and alternative modes  of  transportation,  in
    29  order  to  reduce automobile dependency, traffic congestion, and automo-
    30  bile pollution;
    31    (7) Consistency. To ensure predictability in  building  and  land  use
    32  codes; and
    33    (8)  Community  collaboration.  To  provide  for  and  encourage local
    34  governments to develop, through a collaborative community-based  effort,
    35  smart  growth  plans that include long term land use and permit predict-
    36  ability and coordination, efficient decision making and planning  imple-
    37  mentation.
    38    (b)  Such  plan  may  include  the establishment of a map or maps that
    39  delineate the housing implementation  recommendations  proposed  by  the
    40  town.
    41    (c)  Such  plan  shall be updated at least once every five years. Such
    42  plan and local law shall be adopted  at  least  sixty  days  before  the
    43  mandatory referendum required by subdivision ten of this section.
    44    (d) The town housing plan shall be an element of the town's comprehen-
    45  sive plan.
    46    (e) Such plan shall ensure that all community housing created pursuant
    47  to  this  section  remains  affordable.    Subsequent purchasers of such
    48  community housing shall have at the time of purchase,  pursuant  to  the
    49  definition  "eligible  individual",  an  income that does not exceed one
    50  hundred percent of the income limits as established by the state of  New
    51  York  mortgage agency low interest rate loan program in non-target cate-
    52  gories for Suffolk county.
    53    (f) Such plan shall provide for the equitable distribution of communi-
    54  ty housing opportunities among all the communities of the town. The plan
    55  shall ensure that no community is sited for an  undue  concentration  of
    56  community housing opportunities that would substantially alter the char-

        A. 4941--B                          6
 
     1  acter  of the community. In determining equitable distribution of commu-
     2  nity housing opportunities, existing community housing opportunities  in
     3  a community shall be considered.
     4    8. Village participation.  (a) The participation of any village in the
     5  community  housing  program  authorized  by this section shall be at the
     6  option of the village. In order to participate, a village shall  pass  a
     7  resolution  opting  into the program and shall submit said resolution to
     8  the town board.
     9    (b) Where a village opts to participate pursuant to this  subdivision,
    10  an  intergovernmental  agreement  shall  be executed pursuant to article
    11  five-G of the general municipal law or other applicable legal authority,
    12  in order to establish the rights and responsibilities of each government
    13  regarding community housing opportunities.
    14    9. Intermunicipal agreements. Notwithstanding any provision of law  to
    15  the contrary, towns in the Peconic Bay region may enter into intermunic-
    16  ipal  agreements pursuant to article five-G of the general municipal law
    17  for purposes consistent with this section.
    18    10. Mandatory referendum. The local law or laws adopting  the  housing
    19  plan  and  establishing the community housing fund shall be subject to a
    20  mandatory referendum. Such local law or laws shall only become effective
    21  upon the adoption of said referendum by the electors of the town.
    22    § 4. Section 1449-bb of the tax law, as added by chapter  114  of  the
    23  laws of 1998, is amended to read as follows:
    24    §  1449-bb. Imposition of tax. 1. Notwithstanding any other provisions
    25  of law to the contrary, any town  in  the  Peconic  Bay  region,  acting
    26  through  its  town  board, is hereby authorized and empowered to adopt a
    27  local law imposing in such town a tax on each conveyance of real proper-
    28  ty or interest therein where  the  consideration  exceeds  five  hundred
    29  dollars,  at  the  rate  of  two  percent  of the consideration for such
    30  conveyance.  Provided, however, any such local law  imposing,  repealing
    31  or reimposing such tax shall be subject to a mandatory referendum pursu-
    32  ant  to  section  twenty-three  of the municipal home rule law. Notwith-
    33  standing the foregoing, prior to adoption of such local  law,  the  town
    34  must  establish a community preservation fund pursuant to section sixty-
    35  four-e of the town law. Revenues from such tax  shall  be  deposited  in
    36  such  fund  and  may  be used solely for the purposes of such fund. Such
    37  local law shall apply to any conveyance occurring on or after the  first
    38  day  of  a  month to be designated by such town board, which is not less
    39  than sixty days after the enactment of such local  law,  but  shall  not
    40  apply  to  conveyances  made  on  or after such date pursuant to binding
    41  written contracts entered into prior to such  date,  provided  that  the
    42  date  of execution of such contract is confirmed by independent evidence
    43  such as the recording of the contract, payment of  a  deposit  or  other
    44  facts and circumstances as determined by the treasurer.
    45    2.  Notwithstanding  any  other  provisions of law to the contrary, in
    46  addition to the tax authorized by subdivision one of this  section,  any
    47  town in the Peconic Bay region, acting through its town board, is hereby
    48  authorized  and  empowered  to adopt a local law imposing in such town a
    49  supplemental tax on each conveyance of real property or interest therein
    50  where the consideration exceeds five hundred dollars, at the rate of one
    51  half of one percent of the consideration for such conveyance.  Provided,
    52  however,  any  such  local  law  imposing, repealing or re-imposing such
    53  supplemental tax shall be subject to a mandatory referendum pursuant  to
    54  section twenty-three of the municipal home rule law. Notwithstanding the
    55  foregoing,  prior to adoption of such local law, the town must establish
    56  a community housing fund pursuant to section sixty-four-k  of  the  town

        A. 4941--B                          7
 
     1  law.    Revenues  from  such supplemental tax shall be deposited in such
     2  fund and may be used solely for the purposes of such  fund.  Such  local
     3  law shall apply to any conveyance occurring on or after the first day of
     4  a  month  to  be  designated  by such town board, which is not less than
     5  sixty days after the enactment of such local law, but shall not apply to
     6  conveyances made on or after  such  date  pursuant  to  binding  written
     7  contracts  entered  into  prior  to such date, provided that the date of
     8  execution of such contract is confirmed by independent evidence such  as
     9  the  recording  of the contract, payment of a deposit or other facts and
    10  circumstances as determined by the treasurer. Any tax  imposed  pursuant
    11  to this subdivision shall be administered and collected in a like manner
    12  as the tax imposed by subdivision one of this section.
    13    §  5.  Subdivision  3  of  section 1449-ee of the tax law, as added by
    14  chapter 114 of the laws of 1998, is amended to read as follows:
    15    3. (a) In the towns of East Hampton, Shelter Island  and  Southampton,
    16  an  exemption  of  [two]  four hundred [fifty] thousand dollars shall be
    17  allowed on the consideration of the conveyance of improved real property
    18  or an interest therein and an exemption of one hundred thousand  dollars
    19  shall  be  allowed  on the consideration of the conveyance of unimproved
    20  real property.
    21    (b) In the towns of Riverhead and Southold, an exemption of [one]  two
    22  hundred  [fifty] eighty thousand dollars shall be allowed on the consid-
    23  eration of the conveyance of improved real property or an interest ther-
    24  ein and an exemption of seventy-five thousand dollars shall  be  allowed
    25  on the consideration of the conveyance of unimproved real property.
    26    (c) The provisions of this subdivision shall only apply to conveyances
    27  for  residential property where the consideration is two million dollars
    28  or less.
    29    § 6. Subparagraph 1 of paragraph  (a)  of  subdivision  4  of  section
    30  1449-ee  of  the tax law, as amended by chapter 389 of the laws of 2014,
    31  is amended to read as follows:
    32    (1) in the towns of Southampton, East Hampton and Shelter Island,  the
    33  primary  residential  property  is  within  one  hundred  [twenty] fifty
    34  percent of the purchase price limits defined by the state  of  New  York
    35  mortgage agency low interest rate mortgage program in the non-target one
    36  family  categories for Suffolk county in effect on the contract date for
    37  the sale of such property;
    38    § 7. Severability clause. If any provision of this act or  application
    39  thereof  shall  for  any  reason  be  adjudged by any court of competent
    40  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    41  invalidate the remainder of the act, but shall be confined in its opera-
    42  tion  to  the  provision thereof directly involved in the controversy in
    43  which the judgment shall have been rendered.
    44    § 8. This act shall take effect immediately; provided,  however,  that
    45  the  amendments  to sections 1449-bb and 1449-ee of the tax law, made by
    46  sections four, five, and six of this act shall not affect the repeal  of
    47  article  31-D  of  the tax law and shall be deemed to be repealed there-
    48  with.
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