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June 26, 2020

Stroock Special Bulletin

By: Leonard Boxer, Joseph B. Giminaro, Thomas Zampino

The New York City Council on Thursday passed a pair of bills to aid property owners adversely affected by the coronavirus pandemic.

The measures, 1964-a and 1974-a, respectively, provide lower interest rates for nonpayment at the July 1, 2020, tax deadline and a temporary zero percent rate for owners under an installment plan at the July 1 deadline.

There are myriad complexities for owners seeking this relief, however, and it is unclear whether Mayor de Blasio will sign the legislation prior to July 1.

This client alert details some key aspects of these proposals as first noted by the Real Estate Board of New York.

Intro 1964-2020: Real Property With an Assessed Value Exceeding $250,000

  • Establishes interest rate for nonpayment at 7.5% for July 1, 2020, tax deadline for the period of July 1, 2020,  to October 15, 2020.
  • Allows for a property owner of:
    • Class 4 properties assessed between $250,000 and $750,000; or
    • Assessed values greater than $250,000 where at least 50% of the building is residential rental and contains no more than 30 rental dwelling units of which at least 50 percent are rent regulated accommodations.
  • Requires property owners to submit to the Department of Finance (DOF) by September 30, 2020, a letter demonstrating hardship due to COVID-19.
    • “Hardship” is defined as a 50% decline in income year over year.

Intro 1974-2020: Real Property With an Assessed Value Less Than $250,000

  • Establishes interest rate at 0% for property owners who are under an installment plan for July 1, 2020, tax deadline for the period of July 1, 2020, to September 30, 2020.
  • Establishes interest rate at 0% for owner-occupied properties valued under $250,000 where the household income is less than $150,000.
  • Requires property owners to submit to DOF by September 30, 2020, a letter demonstrating hardship due to COVID-19.

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For More Information:

Leonard Boxer

Joseph B. Giminaro

Thomas Zampino

Kevin Guerra

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