Get Connected > Neighborhood Chat

Senate Bill S6350

(1/2) > >>

Well, does this spell doom for co-op maintenance fees? What to make of this?

On September 6, 2021 (Labor Day), Governor Kathy Hochul signed Senate Bill S6350/ Assembly Bill A7434 into Law. The Bill, which is now part of the Real Property Tax Law and goes into effect on January 1, 2022.  It provides for Building Service Employees working for Cooperative Corporations and Condominium Associations to be paid the prevailing wage f or Building Service Employees. Please note that the law will only affect a Co-Op or Condo that employs non-union Building Service Employees for more than eight hours per week. Union buildings are theoretically already in compliance.  Any building which does not comply with the prevailing wage regulations will lose eligibility for the Co-Op Condo Tax Abatement Program. The two agencies involved, the Department of Finance and the Department of Labor are to publish guidelines and calculators during Q4 of 2021 which will greatly clarify this.  It is not clear if those buildings which employ services of independent contractors will be affected, though it would seem not.  Buildings not enrolled in the abatement program are also unlikely to be affected.  Definition is also expected to be forthcoming if Co-Ops can deduct any losses against Assessed Value.

Below is some immediate information about the Law that we would like to share with you:

1. The Prevailing Wage is defined as the salary and benefits received by members of the Local 32BJ Building Service Employees Union, regardless if the building is affiliated with 32BJ or not. 

2. A Building Service Employee is defined in the Law to include, but not limited to, watchman, guard, doorman, building cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator operator and starter, and window cleaner.

3. Building Service Employees retained through a third-party service provider (i.e., independent security guard or maintenance companies) are exempt from this Law as they are not direct employees of the Co-Op or Condo.

4. The Law states that no Co-Op or Condo can qualify for the 17.5% Co-Op and Condo Tax Abatement unless the Co-Op or Condo pays its Building Service Employees the Prevailing Wage.

5. Exempt from this this Law are Co-Ops and Condos with an average unit assessed value of $60,000 or less, or properties with an average unit assessed value of $60,000 - $100,000 that contain less than 30 apartments or units.

Curious that "live-in super" is not included in #2 above, although it does read "a building service employee is defined in the law to include, but not limited to......" 

This is going to impact smaller, self-managed co-ops mostly, no?

The assessed value of most coops in the neighborhood is going to fall under the guidelines in part 5. So no, probably not the end of coops.

^curious how you come to this conclusion. There's a lot I don't understand, like how frequently are units assessed? (Our property taxes have gone up a lot as property values have increased, so I'm guessing this means it is done frequently). With studios going for $200k+ today, would any JH coop realistically fall under #5?


[0] Message Index

[#] Next page

Go to full version