Overview
- Gov. Kathy Hochul signed the bill on Oct. 14, bringing Article V co-ops into the Mitchell‑Lama tax relief framework after the FY2026 budget excluded them.
- The new law lowers the shelter‑rent tax rate for Article V co-ops from 10% to 5% to ease rising operating costs and support long‑term affordability.
- Assembly Member Tony Simone and State Sen. Brad Hoylman‑Sigal sponsored A8651A/S7780B to enable local property tax relief for the Chelsea co-op.
- Officials estimate savings of up to $2 million per year for Penn South and up to $50 million annually for New York City Mitchell‑Lama residents.
- City action is required to implement the authorized relief before Penn South residents see the lower tax burden in practice.