NYC Council Introduction 570, introduced and sponsored by upper west side council member Gale Brewer in 2024 has passed the council into law.
The official legislation ledger says:
“Subject to the approval of the New York State Urban Development Corporation, this bill would establish a land bank for New York City, which would have a board comprised of the mayor or their designee; the commissioner of finance or their designee; the commissioner of housing preservation and development or their designee; three persons appointed by the speaker of the council; and one person appointed by the mayor with the advice and consent of the council. The land bank would be empowered under state and local law to purchase tax liens from the city and to enforce such tax liens in accordance with policies and procedures intended to promote the goals of collecting outstanding revenues of the city; preserving ownership and equity interests in homes; preventing the displacement of residents from their dwellings; promoting proper and effective management of multiple dwelling residents; and preventing recidivism among properties with tax liens.”
By creating city ownership instead of shifting ownership to private interests, existing tenants rights and habitats are preserved where possible.
“Sponsor Council Member Gail Brewer said the land bank would acquire vacant, abandoned, tax-delinquent, and foreclosed properties to promote homeownership preservation and prevent displacement; she said the proposal would not sacrifice timely tax collection. The package includes reporting requirements and protections for primary resident homeowners.” – https://citizenportal.ai/articles/7290147/New-York/Council-advances-tax-lien-reforms-and-municipal-land-bank-proposals.
Common Ground New York chapter member Kathleen Cummings has been following the progress of this bill and promoting its adoption since its introduction and alerted the NGO to its passage. This was a hard fought victory which will make a generational change for the better in how vacant, abandoned, tax-delinquent, and foreclosed properties are recycled into productive use and revenue for the city.
There is a large and growing Land Bank movement in New York state, with many local chapters: https://nylandbanks.org/. The New York Land Bank Association says:
“The New York Land Bank Association has issued a new report highlighting the remarkable growth and tremendous impact that land banks have had throughout the state since New York’s first land banks were established in 2012. The report, A Decade of Progress: Celebrating 10 years of Land Banks in New York, details the extraordinary rise of New York’s land bank program from a collection of novel organizations to one of the state’s most proven and effective tools for reclaiming vacant and abandoned properties.”
These new New York City properties might also become subject to future legislation to tax their valuable location, even when buildings might be in need of repair and even replacement. There is such a bill pending in the state legislature, though not confined to land bank properties. Says Assembly member sponsor Alex Bores – currently running to replace retiring congressman Jerry Nadler:
“I introduced A3339, which would allow cities to enact badly needed property tax reform, in order to spur housing growth and lower costs for New York families. In November, New York’s voters spoke loud and clear that cost of living remains a central issue. Other states have freed their municipalities to experiment with split rate taxes in order to spur economic growth and revitalize cities. It is past time we do the same here.”
AI Summary
“This bill establishes a new tax on vacant land in New York City and creates a tax credit system for renovating rent-stabilized properties. Specifically, the bill imposes a tax on residential or commercial land that has been vacant for more than 180 days without a building permit, which will be assessed at full market value. The revenues generated from this vacant land tax will be used primarily for two purposes: first, to provide a tax credit for renovations to rent-stabilized properties, and second, to fund programs that encourage development of vacant properties. The tax credit for rent-stabilized property renovations can cover up to 100% of renovation costs and applies to improvements needed to meet city or state building and housing codes, including work on individual units, common areas, or infrastructure like elevators, heating, cooling, plumbing, or electrical systems. Property owners must apply through the New York City Department of Housing Preservation and Development, and fraudulent claims will be penalized with a fee of 10% of the unit’s market value. The bill aims to incentivize property development and improvement in New York City by creating financial mechanisms that discourage land vacancy and support maintenance of rent-stabilized housing.” – https://www.billtrack50.com/billdetail/1804812
The companion bill in the state senate is sponsored by Rachel May but needs many more sponsors in both chambers to pass.
Although there are threats to reduce or even abandon NYC property taxes, and new mayor Mamdani promises an overhaul of the generally loathed 4-class property tax system that’s been in place in NYC since the early 1980s, there are better alternatives for collecting the value of the city’s $2.8 trillion in land value alone.
I discussed a shift to pure LVT here: Replacing the Current 4-Class Property Tax in New York City with a Land Value Tax, relying extensively on AI for valuation and substitution calculations.