NY S08904

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 (per Economic Development Law § 131) entering into recovery leases for currently occupied or vacant properties, where either party suffered financial hardship during the COVID-19 covered period (March 7, 2020 through end of the state disaster emergency).

Requires COVID-19 recovery leases to have terms of at least ten years with annual rent increases not exceeding limits set by local law, and must settle any previous lease arrears.

Limits the benefit period for tax abatements to a maximum of ten years and prohibits abatements from exceeding the property's actual tax liability; cities determine hardship criteria, abatement calculations, and other terms through local law.

Act takes effect immediately and expires and is repealed 12 years after becoming law.