SB 8306 - NYU Furman Center

State Land Use Enacted Legislation

Bill #	State	Year	Party	Topic
SB 8306	NY	2024	D	Accessory dwelling units regulations, Affordable housing incentives and financing, Building code reform, Commercial land, Funding, Inclusionary zoning, Tax Incentives, Vacant or blighted lands

Provided by Furman

Summary

Part HH creates the “Good Cause” Eviction Law.
Part Q permits cities with a population of one million or more to construct buildings with a floor area ratio that exceeds 12.0 if the city imposes minimum percentages of permanently affordable housing on the lot. Subjects buildings to conditions such as local land use reviews, and mandatory financial compensation for tenants required to vacate dwellings demolished for the purposes of building a new dwelling with a floor area ratio that exceeds 12.0.
Part S allows New York City to establish a pilot program to legalize basement and cellar dwelling units in existence prior to the effective date of the article, and the conversion of other specified basement and cellar dwelling units, in select Community Districts.

Defines inhabited basement/cellar dwelling as a basement or cellar unlawfully occupied as a residence by one or more tenants prior to the effective date of the article
Requires local laws to be protective of health and safety standards, and that applications for legalization in flood hazard areas be subject to additional health and safety standards.
Exempts owners accepted into the pilot program to be exempt from civil or administrative liability and zoning resolutions of the city that criminalize basement or cellar units.
Provides tenant protections for current residents of basement or cellar dwelling units.

Part T expands the definition of “eligible multiple dwelling” for purposes of the Affordable Housing New York program, to include buildings with six or more units that complies with affordability requirements and is completed prior to June 2031.
Part R creates 467-m, or the “Affordable housing from commercial conversions tax incentive benefit”a property tax exemption for new multiple dwellings converted from non-residential units in New York City commenced between December 31 2022 and June 30 2031, and completed by December 31 2039.

Requires that not less than 25 percent of the units are made to be affordable housing units in perpetuity, of which:

not less than 5 percent of the dwelling are units that do not exceed forty percent of the area median income,
the weighted average of all income bands for all of the affordable housing units does not exceed eighty percent of the area median income, adjusted for family size,
there are no more than three income bands for all of the affordable housing units, and
no income band for affordable 23 housing units exceeds one hundred percent of the area median income, adjusted for family size.

Also requires eligible projects to subject all affordable housing units to rent stabilization.
Includes prevailing wage requirements for building service employees, and provisions to revoke tax exemptions in the case of building service employer violation of wage requirements.
Provides 35 year benefits for dwellings with a commencement date on or before June 30, 2026; 30 year benefits for dwellings with a commencement date on or before June 30, 2028; and 25 year benefits for those that commence on or before June 30 2031.

Part U creates 485-x, a property tax exemption for new multiple dwellings or homeownership projects with six or more dwelling units created through new construction or conversion of a pre-existing building in New York City, commenced between June 15 2022 and June 15 2034, and is completed before Jun 15 2038.

Requires different affordability requirements depending on the size and type of project:

Rental projects with more than 150 residential dwelling units in certain parts of New York City must set aside at least 25 percent as affordable housing units at an average of 60% AMI in perpetuity.
Rental projects with more than 100 residential dwelling units must set aside at least 25 percent as affordable housing units at an average of 80% AMI in perpetuity.
Rental projects with between 6 and 99 residential dwelling units must set aside at least 20 percent as affordable housing units at an average of 80% AMI in perpetuity
Rental projects with between 6 and 10 residential dwelling units must apply rent stabilization to at least half of the units in perpetuity.

Includes different benefit lengths depending on the size of the rental project: 10 years for a small rental project, 35 years for a modest rental project, 35 years for a large rental project, 40 years for a very large rental project, and 20 years for a homeownership project.
Includes a minimum hourly rates for construction workers, depending on the size and location of the project, and provisions to revoke tax exemptions in the case of applicant violation of wage requirements.
Includes prevailing wage requirements for building services employees, with exemptions for projects with less than 30 units or projects with 100 percent affordable units and not less than 50 percent are affordable to 90% of AMI.

Part EE creates 421-p, a property tax exemption for converted rental multiple dwellings with ten or more units constructed on vacant or underutilized land, and 25 percent of units are affordable to and restricted to occupancy tenants whose income falls between 60 and 80 percent of the area median income.

Exempts eligible projects from property tax while under construction, for a maximum of three years, and for an additional 25 years. Provides that the post-construction exemption percentage shall begin at ninety-six percent and decrease by four percent each year after.
Includes prevailing wage requirements for building service employees.
Part EE also creates 421-pp, which creates a property tax exemption for fully income restricted rental multiple dwellings, where by all units but a maximum of two is affordable to and restricted to occupancy tenants whose income falls between 60 and 80 percent of the area median income. Examples of eligible property tax while under construction, for a maximum of three years, and for an additional 30 years.
Part U creates new tax incentives for affordable housing. Depending on the type of affordable housing being built, affordable housing rental projects receive tax exemptions for between 10 and 40 years

Part V requires the State Fire Prevention and Building Code Council to conduct a study relating to standards for egress and amend the uniform code base on findings of the study.
Part BB prohibits insurers from refusing to cover loss of or damage to real property for affordable housing units
Part GG expands the definition of housing accommodation in human rights law to include accessory dwelling units, defined as “any detached residential dwelling unit that provides complete independent living facilities…which is located on a lot with a proposed or existing primary residence.” Provides a tax exemption for the increased market value of a property as a result of the construction of an accessory dwelling unit.
Part JJ requires the NYC Department of Housing Preservation and Development to audit and review tax-exempt properties for continued compliance with affordability requirements.
Part KK establishes the New York Housing for Future Homeownership and Rental Housing program, which requires the Division of Housing and Community Renewal and the Housing Trust Fund Corporation to fund payments, grants and loans for the formation of limited equity cooperative housing.