NEW YORK CITY-Business owners with property damaged by Hurricane Sandy, as well as impacted home owners, are about to get a sorely needed break on property taxes. Mayor Michael Bloomberg and Finance Commissioner David Frankel on Tuesday announced a $90.3 million reduction in property taxes for homes and businesses impacted by Hurricane Sandy. The reduction is a result of reassessments that the Department of Finance conducted to ensure that the final values reflected damages to businesses, and homes, as well changes in market value following the storm.
For Class 4 commercial properties, market value has been reduced by 10%. The Mayor also announced that the application process for the City's business and loan grant program—a part of the Federal Community Development Block Grant Disaster Relief Program—is now open. Bloomberg, Frankel, NYC Small Business Services Commissioner Rob Walsh and other officials made the announcement at Liberty Warehouse in Red Hook, Brooklyn.
“The Department of Finance's work to reach out to property owners, inspect damage and adjust values will ensure that storm damage is accurately reflected in property tax bills this coming year,” said Bloomberg.
Added Walsh, “The city's low interest emergency loan and matching grant program has helped hundreds of small businesses get back on their feet after Hurricane Sandy but there is still more to do,” said Commissioner Walsh. “The new federally funded business loan and grant program is now available, and will help provide a boost to small businesses still working to recover from Sandy.”
Seth Pinsky, president, New York City Economic Development Corp., noted, “The property reassessments completed over the past several months have provided business owners in the neighborhoods most impacted by Hurricane Sandy with critical assistance, contributing to the ongoing recovery of these areas. This recovery has further been supported by the City's business loan and grant programs, which are in the process of being significantly expanded, thanks to new federal funding. Programs such as these will allow our city not only to restore impacted areas, but to emerge more prosperous than ever before.”
In total, the Department of Finance revised values for more than 88,000 properties impacted by Hurricane Sandy, resulting in an overall reduction of $90.3 compared to the tax burden if calculated from the initial assessments.
Meanwhile, the Federal Department of Housing and Urban Development has allocated $1.77 billion in aid for Hurricane Sandy Relief, of which $293 million will be spent on business recovery programs. More specifically, $72 million has been earmarked for business loans and grants; $90 million for investments in business resiliency; another $90 million for a competition to reward innovative ideas for spurring economic development in hard hit areas; and $41 million for a competition to develop resilient technologies.
Business owners can find out more information about the application and other requirements by calling 311 or visiting www.nyc.gov. Business owners will work directly with an account manager at the NYC Business Solutions Center to apply for loans of up to $150,000 and matching grants of up to $60,000. The city also established emergency grant and low-interest loan programs that have provided nearly $15 million in loans to 650 businesses and $4 million in matching grants to 400 businesses.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
