Legislative Update – May/June
By Conor Gillis
NYSAR Field Representative
Albany Common Council Holds Meeting to Discuss Good Cause Eviction
On April 26th the Albany Common Council’s Law Committee held a meeting to discuss Mayor Kathy Sheehan’s proposed housing legislation. Among the bills discussed was Local Law F of 2021, otherwise known as “Good Cause Eviction.” Landlords and Property owners spoke out against the proposal because of the negative impact it will have on the housing market in Albany and the restrictions it places on their ability to raise rents. GCAR and NYSAR have engaged in an advocacy campaign against the legislation.
Judge overturns state guidance to allow broker fees on rentals
On April 9, 2021, the Supreme Court of the State of New York published the decision in the lawsuit NYSAR, and others filed against the Department of State (DOS) in February 2020. The court ruled in favor of NYSAR’s position that the Tenant Protection Act (TPA) of 2019 does not apply to a landlord’s agent being paid a commission by a tenant. As such, a landlord’s agent may continue to collect commissions from the tenant. The court ruled the state misinterpreted that portion of the act and erred in issuing guidance early last year that sought to restrict brokers from collecting fees or a commission from renters when acting on behalf of a landlord. Read more here.
New York House Delegation urges White House to repeal SALT deduction cap
Democrats in New York’s House delegation sent a letter to House leaders urging for the repeal of the $10,000 cap on state and local tax (SALT) deductions as negotiations with the White House over President Biden’s infrastructure package continue. In the letter, House Democrats say they will oppose any tax legislation that does not fully restore the SALT deduction.
State budget includes $750 million for new Wadsworth lab in Albany
New York state has included $750 million in its final budget to build a new hub for The Wadsworth Center, New York’s state public health lab, in Albany after there were concerns the funding may be in jeopardy.
The money was included as part of the state’s capital projects bill — one of 10 bills that will make up the 2021 budget. State lawmakers and Gov. Andrew Cuomo have been negotiating the final details in the 2021-2022 budget in early April.
Earlier in April, GCAR launched a member call-for-action urging that the legislature include funding in the final budget for the Wadsworth Center.
NAR opposes DOL independent contractor action
NAR submitted comment opposing the Department of Labor’s proposed withdraw of the final rule on independent contractor status under the Fair Labor Standards Act (FLSA). NAR continues to resist any efforts by federal regulators or legislators that threatens real estate professionals’ ability to classify as an independent contractor. Additionally, NYSAR continues to engage state lawmakers to protect independent contractor status for real estate licensees at the state level.
State Legislature passes $212 billion state budget
On April 7, the State Legislature passed a $212 billion state budget, reflecting an $18 billion increase over last year. The budget raises taxes by about $4 billion on high income earners and corporations in New York, increasing personal income tax rates for individuals earning more than $1 million per year and joint filers making more than $2 million, and increasing the corporate franchise tax rate for the next three years.
This year’s budget also includes nearly $3 billion in combined federal and state funding for rent and homeowner relief. NYSAR will continue to review this portion of the budget and provide additional details to members. The application process is expected to begin in May according to lawmakers.
One measure that was not included in the budget was a proposal that would have created a new pied-a-terre property tax on second homes in New York City valued at over 5 million. NYSAR, along with other interested groups, opposed this measure.
The state budget also includes the following:
- $1 billion small business, arts, entertainment and restaurant relief package to help businesses and other organizations recover from the impacts of the pandemic;
- $3 billion Environmental Bond Act pending voter approval in the 2022 general election;
- Requiring internet service providers to offer affordable high-speed internet for low-income households;
- Provides a real property tax relief credit for homeowners earning $250,000 if their total property tax exceeds a fixed percentage of their income;
- A record $29.5 billion in school funding;
- $2.1 billion to establish an “excluded worker” relief fund for undocumented immigrants facing hardships from the pandemic;
- Legalization of mobile sports betting;
- Maintaining $400 million in scheduled tax cuts for middle income earners;
- $100 million for another round of the Downtown Revitalization Initiative
For further details on measures in the state budget, click here. The Governor’s summary of the budget can be found here.
