New York 2025-2026 Regular Session

New York Senate Bill S09867

Introduced
4/9/26  

Caption

Enacts the "teardown tax act"; establishes a dwelling unit removal surcharge on the conversion of multiple dwelling units into single-family dwellings in the city of New York.

Summary

This bill would enact the “teardown tax act” and add a new section to the New York City Administrative Code imposing a surcharge on certain demolition or alteration permits that remove dwelling units from the residential housing market. The surcharge would be $10,000 per dwelling unit removed, whether the loss occurs through demolition or through an alteration that effectively eliminates one or more units. Before a permit could be issued, the Department of Buildings would have to determine whether the surcharge applies, and the applicant would have to pay the Department of Finance and provide proof of payment. The bill also directs the Department of Buildings to adopt rules for determining when a proposed project results in the loss of dwelling units and for conditioning permit approval on payment of the surcharge. Revenue collected from the surcharge would be transferred to the New York City Landmarks Preservation Commission to support its historic preservation grant program. The measure would take effect 90 days after becoming law, with immediate authorization for any needed implementing rules.

Impact

The bill would amend the New York City Administrative Code by creating a new permit surcharge tied to the removal of residential units, affecting developers, property owners, and applicants for demolition or alteration permits in New York City. It would add a financial disincentive for projects that reduce the city’s housing stock and would require coordination between the Department of Buildings, the Department of Finance, and the Landmarks Preservation Commission. The bill does not change state housing law generally, but it would impose a city-level regulatory and fiscal requirement on qualifying projects and redirect the resulting revenue to historic preservation grants.

Sentiment

Based on the bill text and available context, the measure appears to be framed as a housing-preservation and anti-teardown policy, with no recorded committee debate or vote history provided. The sponsor’s approach suggests support for discouraging the loss of existing dwelling units and for channeling funds toward preservation efforts. Because no transcripts or votes are available, there is no documented opposition or support from specific legislators in the supplied materials.

Contention

The main point of contention likely concerns whether a $10,000-per-unit surcharge is an appropriate way to deter teardowns and unit conversions, especially for property owners and developers who may view it as a cost burden on redevelopment. Another likely issue is how broadly the Department of Buildings would interpret alterations that “remove” dwelling units from the market, since that determination controls when the surcharge applies. Preservation advocates and housing advocates may support the bill for protecting the housing stock and funding historic preservation, while development interests may object to added costs and permitting hurdles.

Companion Bills

NY A10999

Same As Enacts the "teardown tax act"

Previously Filed As

NY A10999

Enacts the "teardown tax act"; establishes a dwelling unit removal surcharge on the conversion of multiple dwelling units into single-family dwellings in the city of New York.

NY A11136

Creates shared housing rooming units in new class A multiple dwellings or buildings converted to class A multiple dwellings; creates new regulations in the New York city building codes.

NY S10497

Creates shared housing rooming units in new class A multiple dwellings or buildings converted to class A multiple dwellings; creates new regulations in the New York city building codes.

NY S10123

Prohibits the issuance of a permit for the construction of a new multiple dwelling unless the multiple dwelling contains the minimum number of dwelling units required for the lot; defines minimum number of units required.

NY H1035

Building Permits for Single-family Dwellings

NY HB1035

Building Permits for Single-family Dwellings:

NY S2208

Requires owners of multiple dwellings with at least nine units to provide certain maintenance services; permits municipalities to require owners of multiple dwellings with six to eight units to provide these services.

NY HB1494

AN ACT Relating to the property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers without extending the expiration date of the exemptions or expanding the exemptions to conversions of market rate residential buildings to affordable housing;

NY SB543

Accessory dwelling units and junior accessory dwelling units.

NY A11308

Relates to certain alterations to multiple dwellings; repealer

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