Measures introduced by Assembly Member Herman D. Farrell and Senator José M. Serrano and Council Member David Yassky would provide financial penalties for owners who hold vacant residential properties off market

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Could produce more than $100 million in new revenues for city budget

 January 16, 2008 (New York, NY) Manhattan Borough President Scott M. Stringer, working with state and city legislators, has spearheaded the creation of a comprehensive package of state/city measures that would remove an existing special tax treatment for many vacant residential sites and would require owners of vacant residential sites and buildings to annually register and pay a fee for holding their properties off the market.  The city legislation also calls for an annual citywide survey of all vacant properties.

State legislation has already been introduced by Assemblymember Herman D. Farrell and Senator José M. Serrano that would remove current special tax treatment for vacant residential sites above 110th street; the proposed city legislation by Council Member David Yassky would mandate the annual registration and fee for vacant residential sites, along with an annual citywide survey.

Borough President Stringer said, “Affordable housing is desperately needed in New York City, which has the lowest rental vacancy rate of any city in the nation.  This legislation would provide financial penalties for owners who warehouse vacant properties; it would also provide the city with additional tools to work with owners to foster the creation of affordable apartments, along with more than $100 million in new tax revenues. I want to thank my colleagues, Senator Serrano, Assembly Member Farrell and Council Member Yassky, for rolling up their sleeves and getting to work on this most important issue.”

Assemblymember Herman D. Farrell said, “With the need for affordable housing development as great as it is in New York City, it is imperative that vacant properties be brought on the rolls to accommodate the current housing demands.”

"The housing crisis has severely impacted my Senate district, in particular East Harlem," said Senator José M. Serrano (D-Manhattan/Bronx). "Part of the problem is that current tax policy gives landowners no financial reason or incentive to put their uptown properties into active use. This has frustrated efforts to revitalize neighborhoods and create affordable housing. It's time to end the loophole and move forward improving our community."

 Council Member David Yassky said, "Borough President Stringer's proposal to conduct an annual, citywide survey of vacant land will provide officials with valuable information about different parts of New York. This information will enable the City to allocate resources where they are needed and can be used, such as strategically implementing affordable housing development, or providing assistance to new or struggling commercial areas."

 The state legislation, introduced in 2007 by Manhattan Assembly Member Denny Farrell and State Senator Jose Serrano, would remove the current special tax treatment for vacant land north of 110th Street in Manhattan.  Such vacant properties are now assessed at Class 1 rates, or 6 percent of market value; the possible annual increase in such taxable values is also capped.  Under the proposed legislation these properties would be assessed at the Class 4 rate, or at 45 percent of full market value, and would have no caps on the growth of annual assessments.

 The tentative assessment roll for 2008 shows more than 400 such vacant properties in Manhattan;  taxing these properties at Class 4 rates would produce an estimated $104 million in new revenues.

 Proposed city legislation to be introduced by Council Member David Yassky would require owners of vacant lots and vacant residential buildings to file a notarized registration of their plans for their property, and pay an annual fee of up to $5,000 as long as the property remains vacant.  It would also require the city to conduct an annual survey of vacant properties. 

 Borough President Stringer said, “We want to work with owners to help bring these properties back on line, and to use the registration and the survey to help identify and target owners who could employ current city and state incentive programs to create affordable housing.  In addition, as we face a potential fiscal crunch on our horizon, these measures would provide significant new revenues for the city budget.”

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