Enacts the "teardown tax act"

◆ The sponsor's argument

Why Erik Bottcher says this is needed

While New York City is facing a major housing shortage, there is a grow- ing trend of developers and wealthy New Yorkers purchasing and convert- ing multifamily buildings into single-family homes. There have even been instances in recent years of multiple townhouses and multifamily build- ings being combined to create sprawling mega-mansions. These conversions permanently remove housing units from the market, reduce the city's housing supply, and exacerbate the affordability challenges facing work- ing- and middle-class New Yorkers. Currently, there is no mechanism to discourage the loss of housing resulting from these conversions or to account for the broader social cost imposed on New York's communities. While new development plays an important role in addressing housing needs, the conversion of multifami- ly buildings into single-family residences undermines those efforts by eliminating existing homes. The Teardown Tax Act establishes a $50,000 surcharge for each dwelling unit removed when a multiple dwelling is converted into a single-family home. By tying the surcharge to the number of units lost, the bill ensures that those undertaking such conversions internalize some of the public cost associated with reducing the housing supply. The bill creates a strong incentive to preserve existing housing units and discourages the conversion of multifamily housing into luxury single-fa- mily residences during an ongoing housing affordability crisis. In addition, revenues generated by the surcharge will support historic preservation efforts through the Landmarks Preservation Commission, helping to maintain the character and integrity of New York City's neighborhoods. By discouraging the unnecessary removal of residential units, promoting housing stability, and generating resources for preservation, this bill will help address the city's affordable housing crisis and support the character and preservation of our neighborhoods.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.