May 2024 Insights

By Eileen O’Toole, Esq., Contributing Editor

Some additional amendments made last month to New York State housing law as part of the Budget Bill enacted on April 20, 2024, include new RPTL tax exemption programs applicable outside NYC, as well as some clarifying language in RPAPL §711 in reference to “squatters.”

New Sections RPTL 421-p and 421-pp (LVT #33203) apply to the development of affordable housing outside of NYC on vacant or underutilized land, or to redevelop underutilized buildings. New RPTL §421-p permits municipalities to grant exemptions for newly constructed or converted partially income-restricted rental multiple dwellings consisting of 10 or more units, if the property is located in an area of the municipality designated by local law.

Under RPTL §421-pp for fully affordable buildings, the exemption will be extended to 30 years and capped at 10 percent of shelter rent. These new programs require that any new construction take place on vacant, predominantly vacant, or underutilized land, land with a non-conforming use, or land containing one or more substandard or structurally unsound dwellings, or a dwelling that has been certified as unsanitary by the local health agency.

Also enacted on April 20 was an amendment to RPAPL §711 (LVT #33202) to clarify that a squatter is not a tenant. This amendment was sought by some Queens County legislators after an apparent rise in instances of disputes between property owners and unauthorized occupants found at the owners’ premises. It is unclear what effect this amendment will have since RPAPL §713 still indicates that eviction proceedings are the lawful remedy for seeking removal of “squatters” and other occupants where there is no landlord-tenant relationship

ETPA coverage outside NYC was upheld in another Westchester County municipality. Shortly after the Village of Ossining in Westchester County adopted the ETPA in September 2018, property owners challenged the new law in a legal action against the village, claiming violation of civil and constitutional rights as well as damages. The Westchester County Supreme Court dismissed the case in May 2019. It took five years for the Second Department to rule on the owners’ appeal, which was recently denied. See PJB Equities, Inc. v. Village of Ossining (LVT #33201).

While housing court motions contesting ERAP have dropped off since the OTDA’s rental assistance program ended, some interesting questions still come up. In Jankowitz v. NY State Office of Temporary Disability Assistance (LVT #33206), a tenant sought to appeal the denial of an ERAP application in Supreme Court, New York County. OTDA asked the court either to dismiss the case as untimely or to transfer the proceeding to Albany County, where OTDA’s office is located. The court decided to transfer the case, finding that the Albany court was the appropriate venue for an ERAP decision appeal.