Comptroller Stringer, NYC Funds Release 2021 Shareowner Initiatives Postseason Report

 

Funds instigated crucial change in corporate policies with 85% of NYCRS shareowner proposals implemented, including 93% of proposals relating to workforce diversity data

 Today, New York City Comptroller Scott M. Stringer and the New York City Retirement Systems (“NYCRS”) released the 2021 Shareowner Initiatives Postseason Report highlighting a groundbreaking year of progress on climate change and diversity initiatives.

As portfolio companies faced the impact of the COVID pandemic, continued demands for racial justice, and economic upheaval, NYCRS launched initiatives to support employees and foster diverse, healthy and safe workplaces. NYCRS continued to demand corporate progress in achieving global climate goals by strategically engaging portfolio companies on their responsibility to reduce emissions and address the climate crisis.

“Business success in the 21st century requires measurable diversity from the boardroom to the shop floor and immediate action to address climate change,” said Comptroller Stringer. “In 2021, NYCRS took action to ensure that investors have the information necessary to hold companies accountable for their diversity and racial justice commitments, and to accelerate the necessary transition to a low-carbon economy.  These initiatives protect and create long-term shareowner value and provide retirement security to New York City’s active and retired employees.”

It was a year of consequential change, as NYCRS:

1. Launched a successful national campaign, changing the corporate landscape and dramatically improving the disclosure of workforce diversity data by the largest corporations. Companies are now expected to publicly disclose their EEO-1 Report (which they already submit to the U.S. Equal Employment Opportunity Commission), which includes quantitative, reliable and comparable workforce diversity data concerning gender, race and ethnicity. As a result of the campaign, at least 84 current S&P 100 companies now disclose or have committed to disclose their report, up from approximately 14 S&P 100 companies prior to the launch of the July 2020 campaign.
2. Negotiated agreements with 14 companies after submitting shareowner proposals to enhance board and executive diversity. Thirteen boards adopted policies to promote gender and racial/ethnic diversity in searches for corporate board directors, CEOs and other C-suite executives. An additional board enhanced its existing policy governing searches for highly compensated executives.
3. Prompted leading U.S. automakers to set significant greenhouse gas reduction goals and report on the alignment of their climate-related lobbying activities with Paris Climate Agreement goal.
4. Secured commitments from Southern Company, one of the nation’s largest electric power producers, to comprehensively review its board leadership structure, including consideration of an independent chair and the independent chair’s role in helping the company successfully meet its emissions reduction goal of net zero emissions by 2050.
5. Voted on 149,396 individual ballot items at 15,517 shareowner meetings in 78 markets globally.

The Systems’ shareowner proposals drove much of their engagement and advocacy success. During fiscal year 2021, the Comptroller’s Office, on behalf of some or all the Systems, submitted shareowner proposals to 48 portfolio companies and subsequently withdrew 85% of the proposals after the companies agreed to take steps to implement the request. Five shareowner proposals went to a vote during the fiscal year, including two diversity-related proposals that received an incredibly high average of 85% support from investors.

Among other impactful initiatives, NYCRS supported the successful election of three dissident directors to the Exxon Mobil Board of Directors in the highest profile proxy contest of the season. The historic election of qualified candidates with crucial energy industry and environmental expertise to Exxon’s Board demonstrated that shareowners now expect “climate competent” boards.

The Report principally covers proxy voting and shareowner initiative outcomes for the 12 months ending June 30, 2021, consistent with NYCRS’ fiscal year.

The full report is available here.

Comptroller Stringer serves as the investment advisor to, and custodian and a trustee of, the New York City Retirement Systems. The New York City Retirement Systems are composed of the New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and the Board of Education Retirement System.

In addition to Comptroller Stringer, the New York City Retirement Systems’ trustees are:

New York City Employees’ Retirement System (NYCERS): Mayor Bill de Blasio’s Representative, John Adler (Chair); New York City Public Advocate Jumaane Williams; Borough Presidents: Gale Brewer (Manhattan), Sharon Lee (Queens), Eric Adams (Brooklyn), James Oddo (Staten Island), and Ruben Diaz, Jr. (Bronx); Henry Garrido, Executive Director, District Council 37, AFSCME; Tony Utano, President Transport Workers Union Local 100; Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System (TRS): Mayor Bill de Blasio’s Appointee, John Adler; Chancellor’s Representative, Lindsey Oates, New York City Department of Education; Natalie Green Giles; and Debra Penny (Chair), Thomas Brown and David Kazansky, all of the United Federation of Teachers.

New York City Police Pension Fund (PPF): Mayor Bill de Blasio’s Representative, John Adler; Acting New York City Finance Commissioner Michael Hyman; New York City Police Commissioner Dermot F. Shea (Chair); Chris Monahan, Captains Endowment Association; Louis Turco, Lieutenants Benevolent Association; Edward D. Mullins, Sergeants Benevolent Association; Paul DiGiacomo, Detectives Endowment Association; and, Patrick Lynch, John Puglissi, Joseph Alejandro, and Anthony Cacioppo all of the Patrolmen’s Benevolent Association.

New York City Fire Pension Fund (Fire): Mayor Bill de Blasio’s Representative, John Adler; New York City Fire Commissioner Daniel A. Nigro (Chair); Acting New York City Finance Commissioner Michael Hyman;  Andrew Ansbro, President, Robert Eustace, Vice President, Edward Brown, Treasurer, and Eric Bischoff, Staten Island Representative and Chair, Uniformed Firefighters Association of Greater New York; Liam Guilfoyle, Captains’ Rep.; Paul Mannix, Chiefs’ Rep., and Jack Kielty, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Peter Devita, Marine Engineers Association.

Board of Education Retirement System (BERS): Schools Chancellor Richard Carranza; Mayoral: Isaac Carmignami, Natalie Green Giles, Vanessa Leung, Gary Linnen, Lori Podvesker, Shannon Waite, Michael Kraft (Manhattan BP), Debrorah Dillingham (Queens BP), April Chapman (Brooklyn BP), Geneal Chacon (Bronx BP) and Peter Calandrella (Staten Island BP); Thomas C. Sheppard, Kathy Park Price, Natalie Green Giles, Russell Buckley, Chris Attianese, Shaun D. Francois; and employee members John Maderich of the IUOE Local 891 and Donald Nesbit of District Council 37, Local 372.

MAYOR DE BLASIO, DETECTIVES’ ENDOWMENT ASSOCIATION REACH TENTATIVE CONTRACT AGREEMENT

 

With this agreement, the City has reached pattern-conforming contract agreements for the current round of bargaining with approximately 93% of the unionized workforce

 Mayor Bill de Blasio today announced a tentative contract agreement with the Detectives' Endowment Association. Under this agreement, over 5,000 NYPD employees will receive wage increases consistent with the uniformed pattern. 

“NYPD Detectives work tirelessly to keep us safe, and this agreement honors that work by raising wages for 5,000 employees, consistent with our uniformed pattern,” said Mayor Bill de Blasio.  “Eight years ago, the entire city workforce was working without contracts. Over two rounds of bargaining, I am proud to have partnered with labor to reach fair agreements that recognize the hard work of city employees.”

 

“I am proud to announce this deal, reached working side by side DEA President Paul DiGiacomo.  Every single New Yorker depends on the safety that DEA members help to provide, and this deal gives equitable, pattern-conforming increases to the detectives doing this essential work,” said Commissioner of Labor Relations Renee Campion.

 

“Our members overwhelming agreed that our months of negotiations had the result we wanted: pay increases and a contract of which we can be proud,” said Detectives’ Endowment Association President Paul DiGiacomo.

 

The term of the agreement is April 1, 2019 through May 31, 2022, including a contract extension of two months.  The wage increases will constitute 7.95% over three years, following the pattern of those negotiated with other uniformed unions:

 

·         4/1/2019: 2.25%

·         4/1/2020: 2.50%

·         4/1/2021: 3.00%

 

In addition, the agreement includes a recognition of the NYPD’s right to equip Detectives with body-worn cameras and includes the health care savings agreed upon with the Municipal Labor Committee.  The cost of this settlement in the current fiscal year, including retroactive payments going back to April of 2019, is approximately $150 million, which has already been funded.

 

The terms of the agreement must be ratified by DEA membership. 

 

With this agreement, the City has reached pattern-conforming contract agreements for the current round of bargaining with approximately 93% of the unionized workforce.  

 

Attorney General James Victorious in New York’s Opioid Trial

 

Jury Finds Teva Pharmaceuticals USA and Others Liable of Violating Rights of New Yorkers

Subsequent Trial to Be Held to Determine How Much Teva Required to Pay 

Teva Payment Will Be On Top of Up to $1.5 Billion for New York Already Negotiated by AG James

 New York Attorney General Letitia James today released the following statement after a jury voted that Teva Pharmaceuticals USA, Inc. and its affiliates were liable for the public nuisance charges made by New York state in its opioid trial in Suffolk County State Supreme Court:

“This is a significant day for New York state. This is a significant day for this nation. But, more importantly, this is a significant day for every family and community torn apart by opioids. 

“A jury has found an opioid manufacturer responsible for the death and destruction they inflicted on the American people.

“Teva Pharmaceuticals USA and others misled the American people about the true dangers of opioids, which is why, in 2019, I made a promise that our team would hold them and the other manufacturers and distributors responsible for the opioid epidemic accountable for the suffering that they have caused. 

“Today, I am left thinking about all those families that will never be whole again. For everyone who lost their life. For every parent who will never hold their child again. For every community that’s been devastated. But, today, we took a significant step in righting the wrongs this country has collectively experienced over the last two decades. 

“I am eternally grateful to the trial team and all the staff in the Office of the Attorney General, who put in countless hours on our opioids litigation. Without them we wouldn’t be delivering more than $1.5 billion to New York state to invest in opioid treatment, recovery, and education programs.

“While no amount of money will ever compensate for the human suffering, the addiction, or the lives lost due to opioid abuse, we will immediately push to move forward with a trial to determine how much Teva and others will pay.” 

A subsequent trial will now be held to determine how much Teva and others will be required to pay, which will be added to the up to $1.5 billion Attorney General James has already negotiated for the state of New York from different opioid manufacturers and distributors.

In March 2019, Attorney General James filed the nation’s most extensive lawsuit to hold accountable the various manufacturers and distributors responsible for the opioid epidemic. In addition to Teva, the manufacturers named in the complaint included Purdue Pharma and its affiliates, as well as members of the Sackler Family (owners of Purdue) and trusts they control; Janssen Pharmaceuticals and its affiliates (including its parent company Johnson & Johnson); Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; and Allergan Finance, LLC and its affiliates. The distributors named in the complaint were McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation, and Rochester Drug Cooperative Inc. 

Earlier this month, an agreement with Allergan was reached that will deliver up to $200 million to New York state and Nassau and Suffolk counties for opioid abatement, as well as make enforceable a bar that stops Allergan and all of its subsidiaries, predecessors, and successors from selling opioids in New York and acknowledges Allergan’s prior exit from the opioid business.

In September, an agreement with Endo was reached that has already delivered $50 million to New York state and Nassau and Suffolk counties to combat the opioid crisis.

In July, a settlement with McKesson, Cardinal Health, and Amerisource Bergen that will deliver up to $1 billion to New York state to combat the opioid epidemic was announced.

In June, a settlement that ended Johnson & Johnson’s sale of opioids nationwide and that will deliver $230 million to New York alone was announced.

The deals with Johnson & Johnson, McKesson, Cardinal Health, and Amerisource Bergen have a global value of approximately $26 billion.

The cases against Mallinckrodt and Rochester Drug Cooperative are now moving separately through U.S. Bankruptcy Court.

Attorney General James continues to push to hold Purdue Pharma and the Sackler family accountable for their role in fueling the opioid crisis.

Pursuant to the new law establishing the opioid settlement fund, all funds collected by the state from opioid settlements or litigation victories will be allocated specifically for abatement efforts in communities devastated by the opioid epidemic and will not go towards the state’s general fund.

Separately, but related to her work on opioids, this past February, Attorney General James co-led a coalition of nearly every attorney general in the nation in delivering more than $573 million — more than $32 million of which was earmarked for New York state — toward opioid treatment and abatement in an agreement and consent judgment with McKinsey & Company.

Statement Of U.S. Attorney Damian Williams On The Verdict In U.S. V. Ghislaine Maxwell

 

 “A unanimous jury has found Ghislaine Maxwell guilty of one of the worst crimes imaginable – facilitating and participating in the sexual abuse of children.  Crimes that she committed with her long-time partner and co-conspirator, Jeffrey Epstein. The road to justice has been far too long.  But, today, justice has been done.  I want to commend the bravery of the girls – now grown women – who stepped out of the shadows and into the courtroom.  Their courage and willingness to face their abuser made this case, and the result, possible. I also want to thank the career prosecutors of the Southern District of New York, who embraced the victims’ quest for justice and have worked tirelessly, day in and day out, to ensure that Maxwell was held accountable for her crimes. This Office will always stand with victims, will always follow the facts wherever they lead, and will always fight to ensure that no one, no matter how powerful and well connected, is above the law.”

Governor Hochul Announces Adoption of Regulation to Transition to Zero-Emission Trucks

 

New Advanced Clean Truck Rule Requires Zero-Emission Vehicle Sales to Reduce Pollution and Combat Climate Change

Reduction in Harmful Transportation Emissions Helps Achieve Climate Act Requirements and Creates Healthier Communities

 Governor Kathy Hochul today announced a significant milestone in the reduction of harmful truck emissions with the final adoption of New York's Advanced Clean Truck Rule. The regulations, first proposed during the Governor's commemoration of Climate Week in September, will be instrumental in helping the State achieve the ambitious targets of the Climate Leadership and Community Protection Act (CLCPA) by phasing in the sales and use of zero-emission trucks and will reduce their harmful pollutants, which disproportionately impact the health and well-being of disadvantaged communities.

"New York continues to lead the nation in tackling the climate crisis, taking bold steps to end our reliance on fossil fuels and transition to clean energy," Governor Hochul said. "The regulations we are adopting will help us cut pollution and emissions, kick-start the shift to clean electric trucks, and address the environmental injustices that have plagued too many communities across our state."

The new Advanced Clean Trucks (ACT) rule finalized by the State Department of Environmental Conservation (DEC) requires manufacturers of vehicles greater than 8,500 pounds to sell an increasing number of zero-emission vehicles (ZEVs) in New York State.  The regulation complements New York's recently adopted legislation that established a goal for 100 percent of medium- and heavy-duty vehicles offered for sale or lease, or sold, or leased, for registration in the State be zero-emission by 2045, where feasible. The ACT regulation will also result in substantial reductions of particulates, nitrogen oxides, and toxic pollutant emissions in disadvantaged communities that have been disproportionally impacted by diesel truck pollution. 

DEC Commissioner Basil Seggos said, "This past year, we have made incredible progress in implementing the requirements of the CLCPA and in taking real action to reduce the emissions driving climate change's impacts and 2022 is off to a great start with the finalization of this regulation. It is a testament to the commitment the Governor is showing to achieving our climate goals and our ongoing work to help drastically reduce the pollution created by medium- and heavy-duty trucks on roadways across the State."

New York was a signatory to a Multi-State ZEV Memorandum of Understanding in July 2020 establishing a commitment to work collaboratively together to advance and accelerate the market for electric medium- and heavy-duty vehicles, including large pickup trucks and vans, delivery trucks, box trucks, school and transit buses, and long-haul delivery trucks. New York joins California, New Jersey, Washington, and Oregon in adopting the ACT.

State Department of Transportation Commissioner Marie Therese Dominguez said, "Today's announcement underscores the important role that the transportation sector plays in reducing greenhouse emissions and will help  support a healthier and safer environment for all New Yorkers. This bold action by Governor Hochul further demonstrates New York State's status as a global leader in the fight against climate change.

President and CEO of NYSERDA Doreen M. Harris said, "As New York State works to decarbonize our economy and lower greenhouse gases, it is exciting to see zero emission truck regulations coming to fruition as part of our work to combat climate change. Together with the private sector, local communities, and consumers, we are charting a pathway to a brighter future that offers cleaner air and healthier communities for all New Yorkers."

Adoption of ACT is instrumental to meeting the requirement of the New York's Climate Leadership and Community Protection Act (CLCPA) to reduce greenhouse gas (GHG) emissions by 85 percent by 2050 in the State. The regulation will drive an increase in the number of medium- and heavy-duty ZEV models available as purchase options for medium- and heavy-duty vehicle purchasers and fleets. ACT provides the needed regulatory certainty to support a stable market for long-term vehicle purchasing decisions and the development of medium-and heavy-duty ZEV charging infrastructure, including the potential for hydrogen refueling. 

Starting with model year 2025, applicable manufacturers would incur deficits each year based on the total number of medium- and heavy-duty vehicle sales in New York. These deficits will be offset by credits generated from the sale of medium- and heavy-duty ZEVs or near zero emission vehicles (NZEVs). Medium and heavy-duty ZEV and NZEV credits may be generated, banked, and traded by vehicle manufacturers.  Credits would have a limited lifetime to ensure continued medium and heavy-duty ZEVs sales in New York.  The sales requirement would increase annually through model year 2035.

The full regulation is available at https://www.dec.ny.gov/regulations/propregulations.html#recent

To support the decarbonization of the transportation sector, New York State has already implemented several key programs to accelerate the transition to zero-emission medium- and heavy-duty trucks, including incentives provided through the New York Truck Voucher Incentive Program and the New York City Clean Trucks Program, utility-based fleet assessment services, a $15 million medium- and heavy-duty Make-Ready Pilot program, and a $24 million Electric Truck and Bus Challenge Prize competition. New York State agencies and authorities will seek federal funding provided through the federal Infrastructure Investment and Jobs Act (IIJA) to promote development of medium and heavy-duty ZEV infrastructure in New York State, including consideration for disadvantaged communities and rural applications. In addition, DEC and the New York State Energy Research Development Authority (NYSERDA) will consult other State agencies to further develop and expand incentive initiatives as part of a zero-emission vehicle market development strategy required by the recently adopted law. That process will be completed no later than January 2023, well in advance of the sale of model year 2025 vehicles covered by DEC's ACT regulation.

The regulation also establishes a one-time large entity fleet reporting requirement. Subject medium and heavy-duty fleets will be required to submit a one-time report to DEC by April 1, 2023.  Reported information will help identify future strategies to accelerate the adoption of zero-emission medium- and heavy-duty vehicles.

New York State's Nation-Leading Climate Act

New York State's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York's clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.

A Message from the 13th Bronx Borough President, Ruben Diaz Jr.

 

Dear friends,

At the end of this week, after serving over 12 marvelous years as your Bronx Borough President, and after 26 years of public service, I will leave elected office. Having the opportunity to be the Chief Executive of my hometown has been the most challenging and rewarding job, and I am deeply thankful to all of you for allowing me to serve. 

As my final term comes to a close, it is with great pride that I reflect on the transformative agenda we built and executed, that has elevated every neighborhood and community in this great borough.

Right before we were hit by the COVID-19 pandemic, we saw unemployment numbers fall below five percent, reaching the lowest levels in the history of The Bronx. We brought new businesses to the borough, and not only did we see unprecedented job growth, but these jobs paid living wages, thanks to the fight for the $15 minimum wage that began right here in our borough.

We have invested over $65 million in housing, giving thousands of families affordable units to call home. We turned empty, dilapidated lots into residential oases while making it clear to anyone who wanted to build here that if they want to do business in The Bronx, they must do business with The Bronx.

Since I became Borough President, my office has invested close to $100 million in capital funding into education, across 637 school improvement projects in every corner of The Bronx. We have made technological improvements, built new school yards, upgraded multi-purpose spaces, funded the creation of a hydroponic science lab and more. Our communities depend on public schools to provide our children with a quality education and I am proud that my office has played a role in ensuring the growth of our leaders of tomorrow.

In addition to the upgrades in our schools, we have also made changes for our youth outside of the classroom. In the wake of the tragic death of Lesandro Guzman-Feliz, also known as Junior, we came together not only to mourn this great loss, but to instill hope for a brighter future for our youth. We used our pain as a push to establish Camp Junior, a place for Bronx kids to go and not only experience nature and the outdoors, but also create their own networks while participating in free recreation and educational opportunities, including an anti-violence curriculum.

Growing up here in The Bronx, I remember not having adequate playgrounds and knowing that needed to change. We invested over $83 million in parks and green spaces, giving Bronx residents outdoor amenities, improving the quality of life in our borough.

Time and again, we proved our commitment to rebuilding and modernizing our borough’s infrastructure. We’ve made tremendous progress in transportation, both with our roads and public transit. We were able to restore ferry service, which reduced travel times for many Bronxites and created an alternative way of getting from point a to point b. After years of advocacy, we were able to secure funding to upgrade the Bruckner Sheridan Interchange. This project transformed an outdated interstate highway into a boulevard giving residents and visitors a direct connection to the Bronx waterfront and parks. We also made sure the state heard us out, and soon there will be four new Metro North stations, bringing Penn Station access to the East Bronx, which will come with job opportunities and reduced congestion for residents and visitors alike.

Despite our progress, I know life is not perfect here, but Bronxites are resilient and in hard times, we always come together and show strength, creativity and compassion. When Hurricane Maria hit Puerto Rico, the spirit of The Bronx was on national display as people from all different backgrounds came together and donated over 300,000 pounds of goods for affected Puerto Ricans.

When the COVID-19 pandemic hit, our borough was devastated; however, we saw neighbors helping neighbors all around The Bronx. Through the generosity of numerous partners, my office was able to distribute food and PPE in every area of the borough. Through a public-private partnership, my office was able to work with the schools to distribute almost 1,000 laptops to help students with remote learning.

As we recover from the pandemic, we have made great progress on projects that will help make The Bronx a global destination and give our residents the amenities we deserve. We were able to break ground on the renovations of Orchard Beach, towards which my office allocated $30 million dollars, that will give The Bronx Riviera a new look and attract people to the borough year-round. We cut the ribbon on a brand-new state-of-the-art YMCA in Edenwald, and now the Northeast Bronx has a much-needed space filled with a variety of programming that is truly a transformative addition to the neighborhood. We broke ground on the Universal Hip Hop Museum, which will ensure that we honor hip-hop in its rightful home as well as serve as a tourist attraction.

No matter who you are or what part of our borough you call home, I want you to know that each day I woke up and gave everything I had to fighting for you. Once again, to all of my constituents and supporters, I say thank you. The Bronx is where I was born, grew up and raised my own family. I bleed this borough and the opportunity to serve as the president of my hometown has been the honor of a lifetime. I wish you all good health and a Happy New Year. I won’t say goodbye but I will say, “see you soon.”

Sincerely,

Ruben Diaz Jr. 

Permits Filed For 350 Grand Concourse In Mott Haven, The Bronx

 

350 Grand Concourse in Mott Haven, The Bronx

Permits have been filed for a 12-story mixed-use building with affordable housing at 350 Grand Concourse in Mott Haven, The Bronx. Located between East 138th and East 144th Streets, the lot is near the 138th Street-Grand Concourse subway station, serviced by the 4 and 5 trains. Peter Fine of Bolivar Development is listed as the owner behind the applications.

The proposed 144-foot-tall development will yield 196,902 square feet, with 108,334 square feet designated for residential space and 88,568 square feet for community facility space. The building will have 141 residences, most likely rentals based on the average unit scope of 768 square feet. The masonry-based structure will also have a 31-foot-long rear yard and 50 enclosed parking spaces.

GF55 Partners is listed as the architect of record.

Demolition permits have not been filed yet. An estimated completion date has not been announced.

NYC ADVISORY COMMISSION ON PROPERTY TAX REFORM RELEASES FINAL REPORT

 

Report recommends the most significant changes to New York City’s property tax system in 40 years

 The New York City Advisory Commission on Property Tax Reform today released its final report with recommendations to create a simpler, clearer and fairer property tax system. The final report, entitled “The Road to Reform: A Blueprint for Modernizing and Simplifying New York City’s Property Tax System,” recommends sweeping changes to the current system, with a particular emphasis on smaller residential properties which the public and subject matter experts most often cite as having the greatest inequalities.

 

The final report expands on the initial recommendations released on January 31, 2020 and details targeted owner relief programs that will help low- and moderate-income homeowners better afford their tax bills. The report marks the first top-down review of the property tax system by a government-appointed commission since 1993. It can be found here.

 

“I am pleased to present the final report of the Advisory Commission tasked with reforming the City's property tax system. I would like to thank the members of the commission who spent the last three years diligently working through the myriad issues involved. Hopefully, this report will serve as a blueprint for the state and city legislative bodies to take this long needed reform to enactment,” said Commission Chair Marc Shaw.

 

The Commission’s work was temporarily disrupted by the pandemic, but it resumed in 2021 with an additional five public hearings to solicit input on the 10 recommendations in the preliminary report. The public’s feedback was instructive for the Commission in developing its final recommendations, which involved stripping the system of the features that lead to inequities and reconstructing it to align with a set of basic principles that prioritize targeted relief for primary resident owners.

 

The Commission’s strategic approach centered on first establishing the right mix of structural changes to achieve horizontal equity, the principle that similar properties should be taxed similarly, and then layering on owner relief programs consistent with the longstanding ability-to-pay principle. The result is a system design that will help ensure low- and moderate-income owners have affordable tax bills and primary residents are not displaced from neighborhoods that they have called home.

 

The Final Report includes structural changes that would make the system more equitable and understandable by:

 

·         Creating a new tax class for small residential property owners: 1-3 family homes, condos, coops, and 4-10 unit rental buildings, ensuring that rules are applied uniformly regardless of property type;

 

·         Valuing property in this new residential class based on sales-based market value, thereby ending the statutory requirement to value coops and condos based on comparable rental buildings;

 

·         Ending fractional assessments which differ by property class and confuse property owners;

 

·         Removing assessed value (AV) growth caps, widely recognized as one of the primary drivers of inequity, and phasing in market value changes over five years instead;

 

·         Replacing the complicated class shares system with a simple, more transparent system where individual tax class rates are fixed for five-year periods, unless deliberately changed by the City Council and the Mayor.

 

Recommendations also include targeted relief for primary resident owners to help them better afford their tax bills, including:

 

Homestead Exemption: A flat rate or graduated rate partial exemption is recommended.

 

·         Flat Rate Exemption: Primary residents with incomes below $375,000 would receive a 20% property tax exemption based on sales-based market value. Those with incomes between $375,000 and $500,000 would receive exemptions between 4% and 16%.

 

·         Graduated Marginal Rate Exemption: Primary residents with incomes below $375,000 would receive an exemption of up to 30% based on their home’s sales-based market value. The exemption would decrease for higher-valued homes and, for those with incomes between $375,000 and $500,000, the exemption would be further reduced.

 

Circuit Breaker: In addition to the homestead exemption, a tax abatement for those who are tax-burdened, with incomes below $90,550, is recommended.

 

• Primary residents with incomes below $90,550 who pay more than 10% of their income in property taxes would receive a tax abatement for the amount in excess of 10% of their income, up to a limit of $10,000; for those with incomes between $58,000 and $90,550, the benefit would be gradually reduced as income rises.

 

 

“While New York City’s property tax system has resisted reform for forty years, this comprehensive package of proposals offers a realistic path forward that addresses deep inequities and responds to the realities of vast differences in ability to pay. I urge the City's State legislators to champion these reforms in Albany and show all taxpayers that government works in their interests,” said Commission Member James Parrott.  

 

“The work of this temporary commission draws a roadmap toward real estate tax equity in New York’s property tax system, which has treated too many New Yorkers unfairly for decades.  What frightens me the most, is that if government doesn’t take the steps towards fairness and transparency now, the inequity between homeowners is going to grow more and more disparate each and every year to come,” said Commission Member Allen Cappelli.

 

"Over the past three years, the Commission has worked diligently to find solutions and/or recommendations to make our current property tax system more efficient, understandable and transparent. I believe the recommendations in our final report make real and substantial progress towards realizing those goals.  Accordingly, I want to thank my Commission colleagues, as well as the invaluable support staff from the New York City Council, the Mayor’s Office, the Department of Finance, and the Office of Management and Budget for their hard work and dedication to our mission,"  said Commission Member Kenneth J. Knuckles.

 

“New Yorkers deserve a fairer property tax system than what we have, which is getting more unfair with each year.  The Commission presents a road map for a fairer and simpler system.  Our elected officials need to follow that road soon,” said Commission Member Carol O'Cleireacain.

 

"The Commission was asked to develop recommendations to make the property tax system fairer, simpler and more transparent.  The recommendations in this report will do just that and, if enacted, benefit residents who have been taxed unfairly for far too long," said Commission Member Elizabeth Velez.  

 

About the Commission

 

Mayor Bill de Blasio and Speaker Corey Johnson announced the Commission in May of 2018.  It was charged with developing recommendations to reform the existing property tax system to make it simpler, clearer, and fairer, while ensuring that there is no reduction in revenue to fund essential City services.

 

Beginning in 2018, the Commission conducted a first round of hearings where members of public provided feedback on the property tax system and the Commission received advice from experts.  Following a series of Commission meetings in executive session, a Preliminary Report was released in January 2020.  The Commission’s work was delayed by the COVID-19 pandemic, but resumed in the spring on 2021.  Five additional virtual hearings were held this year to solicit feedback on the preliminary recommendations.  In total, the Commission has sponsored 15 public events and has read hundreds of public comments. 

 

Commission members include Marc V. Shaw, Chair, Allen P. Cappelli, Carol O’Cleireacain, Kenneth J. Knuckles, James A. Parrott, and Elizabeth Velez.  The Commission also included non-voting ex-officio members including the Commissioner of Finance Sherif Soliman, Budget Director Jacques Jiha, City Council Finance Division Director Latonia McKinney, and the Deputy Director and Chief Economist of the City Council Finance Division Raymond Majewski.