NY A10936

Authorizes cities with populations of one million or more to offer real property tax abatements to properties where owners enter into COVID-19 recovery leases with eligible small business tenants.

Defines eligible commercial tenants as small businesses that enter leases for currently occupied property or vacant property (excluding evictions) and requires COVID-19 recovery leases to have minimum ten-year terms with annual rent increases capped by local law.

Requires COVID-19 recovery leases to be entered within two years of the act's effective date and to settle any arrears owed under previous lease agreements for the property.

Local laws establishing the tax abatement program must specify how financial hardship is determined, maximum annual rent increases, benefit period duration (not exceeding ten years), abatement calculation methods, and may set a maximum aggregate value of all abatements granted.

Act takes effect immediately and expires and is repealed 12 years after becoming law.