New landmarks notification and tax commission laws addressed by REBNY.

As part of their ongoing service to owners, managers, members and the industry at large, the Real Estate Board of New York (REBNY) recently examined the passage of two new laws which REBNY has been tracking through its legislative committees.

Two local laws which affect the industry were passed at the end of 1996. Local Law 88, which gives the Tax Commission greater flexibility in resolving back-year petitions, was supported by REBNY. Local Law 92 pertains to requirements for notification of the landmark status of certain properties. REBNY worked to ensure that the notification process was not unnecessarily burdensome. The following are summaries of the new laws:

Local Law 92 was signed by the Mayor on December 13, 1996, amending Chapter 3 of Title 25 of the administrative code of the City of New York by adding a new section 25-322 regarding notification of landmark designations. This section requires the following:

Owners of landmarks, landmark sites, interior landmarks or property in a historic district (landmarked property) are to be notified in writing by the Landmarks Preservation Commission when a- designation occurs.

The owner or agent of a landmarked property must ensure that its non-residential leases and any subleases contain a notice stating that the property has been designated and that in accordance with the administrative code, the lessee must obtain a permit from the Landmarks Preservation Commission before commencing any exterior or interior work on the improvement or property, except for ordinary repair and maintenance as defined in the code. This applies to leases commencing on or after December 13, 1996.

When a designation is made during the term of a lease or sublease, the lessor must notify the tenants within 30 days after being notified in writing of the designation by the Commission. The following method of notification is to be used:

* Send a written notice (noting the designation and the requirement to obtain an LPC permit prior to starting work) to all nonresidential lessees. The notice is to be sent by certified or registered mail, return receipt requested, to all non-residential lessees on the first two floors of the building.

* The notice is to be sent to all other nonresidential lessees by any means reasonably designed to ensure that notice is given.

* Violations of the provision to notify tenants may result in a civil penalty of not more than $500 per violation returnable to the Environmental Control Board.

On November 12, the Mayor signed Local Law 88, in relation to the Tax Commission's review of real property assessments. The new law allows the Tax Commission to remit or reduce real property taxes for back years more efficiently and reduces the need for litigation. The legislation addresses the problem resulting from the strict time frames contained in the previous law, which limited the Commission's ability to make back-year or two-year settlements with taxpayers.

Under the old law, backyear offers had to be made by June 30th for properties assessed under $750,000 and by September 1st for properties assessed at $750,000 or more. Due to the large number of appeals the Commission receives, these time limits were difficult to meet, and in fact were not met for many, particularly small- and medium-sized properties. This resulted in a situation where, depending only on their place on the Tax Commission calendar, some properties were eligible for back-year offers, while others were not. The new legislation enables the Tax Commission to act on the most recent beck-year petition, regardless of the property's assessed value, for up to five years after the last day on which an application for correction could have been filed to appeal the assessment in question.

For a copy of the complete text of these laws, send a self-addressed stamped envelope ($0.32) to: REBNY Research Dept., 12 East 41st Street, New York, NY 10017, or visit the Research Dept.'s page on REBNY's website of http://www.hia.com/hia/-rebny.