New York Assembly Bill A08651

New York 2025-2026 Regular Session

• Introduced: 5/22/25
• Refer: 5/22/25
• Report Pass: 6/6/25
• Refer: 6/6/25
• Report Pass: 6/9/25
• Engrossed: 6/9/25
• Refer: 6/9/25
• Engrossed: 6/10/25
• Enrolled: 10/9/25
• Chaptered: 10/14/25
• Passed: 10/14/25

Caption

Relates to the extension of a tax exemption for a mutual redevelopment company in a city having a population of one million or more persons.

Summary

A08651 amends the Private Housing Finance Law to change the minimum tax payment required for certain mutual redevelopment companies in New York City when a local legislative body extends an existing tax exemption. Under current law, these entities can receive an additional tax exemption period of up to 50 years, but must pay at least the greater of two specified amounts during the exemption period. This bill changes that floor so the required payment is the lesser of those two amounts instead of the greater, and also reduces the percentage benchmark from 10 percent to 5 percent of annual rent or carrying charges minus utilities for the residential portion of the project. The bill applies only in a city with a population of one million or more, which in practice means New York City, and only where the local legislative body has already extended the mutual redevelopment company’s tax exemption for the maximum period allowed under existing law. The additional exemption period would still begin after the prior maximum period ends, and the bill takes effect immediately.

Impact

This bill would lower the minimum property tax payments owed by qualifying mutual redevelopment companies during an extended tax exemption period, thereby reducing local tax revenue and increasing the value of the exemption for affected housing projects. It amends section 125 of the Private Housing Finance Law, specifically paragraph (a-4) of subdivision 1, and changes the statutory formula used to calculate the tax floor for these projects in New York City. The practical effect is to make it easier for certain cooperative or redevelopment housing entities to maintain reduced tax obligations for a longer period.

Sentiment

The bill appears to have broad legislative support. It passed the Assembly Ways and Means Committee unanimously, advanced unanimously through Assembly Rules, and passed the Assembly floor by a wide margin. It also passed the Senate floor, though with some opposition, indicating overall favorable sentiment but not complete consensus. The lack of committee transcript material limits insight into detailed debate, but the vote history suggests the measure was generally viewed positively as a housing-related tax relief bill.

Contention

The main point of contention is the reduction in the minimum tax payment requirement, which effectively lowers the amount these housing entities must contribute during the exemption period. Supporters likely view this as a way to preserve affordability or support redevelopment housing projects in New York City, while critics may be concerned about the loss of tax revenue for local government and the preferential treatment of a narrow class of property owners. The Senate floor vote, unlike the unanimous Assembly votes, shows that some legislators objected to the bill’s fiscal impact or policy direction.