Bill Summary: A05920

• Establishes a real property tax abatement program for eligible buildings in cities with populations of one million or more that enter into ten-year leases with nonprofit organization tenants limiting annual rent increases to no more than three percent.

• Abatement amounts equal the lesser of $2.50 per square foot or 50% of tax liability per square foot for the first five years, declining to two-thirds for years six through eight and one-third for years nine through ten.

• Eligibility period runs from April 1, 2025 through March 31, 2035, with applications accepted from April 1, 2026 onward and benefit periods lasting up to ten years.

• Requires landlords to notify the Department of Finance within 30 days of tenant vacancy or premises ceasing to be used as eligible space, with abatements reduced or revoked retroactively if conditions are not met.

• Abatements are revoked if real property taxes or water/sewer charges remain unpaid for more than one year, and applicants and building owners must disclose any prior violations of arson laws or similar crimes.