LEGISLATIVE AFFAIRS: April Legislative Update
Philip Weiden | April 6, 2021
As the year goes flying by a great deal has been happening at the state and federal level. At the federal level, the PPP deadline has been extended by Congress. This will help assist many businesses who are in line more time to apply for and receive much needed funds to stay afloat.
The American Rescue Plan, passed and signed into law by Congress, includes $25 billion for landlords which will help with lost back rent allowing for property maintenance and payment of property to state and local governments. Eviction moratoriums have worn out their use at this time. Many renters owe back rent of tens of thousands of dollars and have no means for paying that money back. In addition, there are renters who have the means to pay their monthly rent but are choosing not to do so.
At the state level, both houses of the legislature have passed their budget resolutions with billions of dollars in new taxes. HGAR is stridently opposed to any new real estate transfer taxes, mortgage recording taxes or the pied-a-terre tax which would tax homes in New York City valued at $300,000 or more a year. The State Senate also has a bill that would impose a 20% tax on homes that are bought and sold in less than one year in New York City. The goal of the legislators is to stop the flipping of housing units. This would have a negative effect on property ownership in the city as it would serve to drive down property values. Neighborhoods and properties would fall into disrepair.
On a local level, we finally have a co-op reform bill that has been formally introduced in the legislature. It calls for fines for failure to notify the Human Rights Commission of rejections, starting at $1,000 for a first offense, $1,500 for a second offense and $2,000 for a third offense. This bill is a big step in the right direction.
Please respond to the call for action urging the BOL to pass it. Stay tuned for updates on these matters.