Bill > S01091

This bill establishes a tax abatement program for nonprofit organizations leasing commercial or mixed-use spaces in cities with a population of one million or more (effectively New York City). The program provides a graduated tax reduction for eligible nonprofit tenants over a 10-year period, contingent on specific lease requirements. Key provisions include: landlords must enter into a 10-year lease with a tenant, include a renewal clause that limits rent increases to no more than 3% annually, and meet various administrative requirements. Tenants must be nonprofit organizations occupying at least a portion of the building, and the abatement will decrease over time - starting at full value in the first five years, then reducing to two-thirds in years six through eight, and one-third in years nine and ten. The bill includes detailed eligibility criteria, application processes, and enforcement mechanisms, such as annual reporting requirements and potential revocation of abatements if tenants vacate the premises or fail to meet program standards. The tax abatement is designed to help nonprofits manage rising real estate costs by providing a significant tax benefit to landlords who offer stable, affordable lease terms.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1091