Amendments to Rules for Filing Real Property Income and Expense Statements

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Thursday, September 4, 2014

Statement and Basis and Purpose

 

Section 11-208.1 of the Administrative Code of the City of New York requires that owners of income-producing real property in New York City file income and expense statements each year for the property. The Department of Finance uses the information in the statements to assess the value of real property in the City.

 

Local Law 52 of 2013 amended Administrative Code § 11-208.1.  These proposed amendments will, among other things, conform the rules relating to the filing of income and expense statements set forth in Chapter 33 of Title 19 of the Rules of the City of New York to the Administrative Code by:

        • revising the deadline for filing the annual income and expense statements from September 1 to June 1;
        • providing that if a property owner has not owned the property and is without knowledge of the income and expenses of the property for the entire year for which the income and expense statement is required, then the owner must file a claim of exclusion and will not be required to file an income and expense statement for that year
        • providing penalties for the failure to file a claim of exclusion, where it is required, and the opportunity for property owners to be heard prior to the imposition of such penalties;
        • authorizing the Commissioner of Finance to extend the deadline for filing by up to sixty days for income and expense statements or claims of exclusion for residential class two properties held in the cooperative or condominium form of ownership (the existing rules authorize the Commissioner to provide up to thirty days extension for all properties);
        • providing that monetary penalties imposed for failure to file an income and expense statement, or, where required, a claim of exclusion, will be liens on the affected real property and will accrue interest until they are paid; and
        • providing an “innocent purchaser” waiver mechanism for property owners who took title to real property without knowledge that a monetary penalty would be imposed for the prior owner’s failure to timely file.