Albany County Executive Daniel P. McCoy announced the approval of Local Law No. “C” for 2025 which will create a real property tax exemption for the increase in assessed value of a parcel which has a preexisting residential building, and where one or more accessory dwelling units has been added. This legislation was introduced by the County Executive and carried by Chairwoman Joanne Cunningham and Deputy Chairwoman Wanda Willingham. The law is part of Albany County’s ongoing commitment to improving housing options and is expected to encourage responsible housing growth, improve affordability, and create more vibrant, sustainable communities.
“By removing one of the financial barriers for the construction of accessory dwelling units, we are empowering residents to be part of the solution to our housing challenges, and promoting multi-generational living. We're dedicated to practical solutions that strengthen our neighborhoods and increase housing accessibility,” said Albany County Executive Daniel P. McCoy.
“Today’s announcements are just our latest additions in the Legislature’s holistic Housing Agenda. By guiding first-time homebuyers and those looking for rehabilitation opportunities through the complexities of the process alongside rewarding residents for investing in their property and thus freeing up housing inventory, we are sending a very clear message: Albany County is pro-housing. I am proud to collaborate with our County Executive on this and applaud his work helping us lead the way in creating more housing – especially affordable housing – in Albany County,” said Albany County Legislature Chairwoman Joanne Cunningham.
“These initiatives add to the Legislature's Housing Agenda that supports everyone in Albany County. In countless academic studies, analyzing almost every metric of success, stable housing is a key force for good. This new local law will encourage residents to invest in accessory dwelling units by creating a tax-exemption window so their budgets aren’t strained while freeing up sorely needed housing inventory. This helps our needs in this moment while also addressing historic inequities in housing opportunities that people of color in Albany County have dealt with, stretching back nearly a century. As community leaders, we are using evidence-based research and our knowledge of past practices to inform our decisions in the present as we endeavor to help all of the people of Albany County in the future,” said Albany County Legislature Deputy Chairwoman Wanda Willingham.
An Accessory Dwelling Unit is defined in the law as any attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons which is located on a lot with provisions for living, sleeping, eating, cooking, and sanitation on the same lot as the single-family or multi-family dwelling.The exemption will be applied to the increase in assessed value of a parcel as a result of construction, reconstruction, alteration, or improvement on the parcel to create one or more accessory dwelling units where the increase in value is at least $3,000 and is subject to a cap of $200,000 in increased market value. The resulting increase in the assessed value of eligible property is fully exempt for five years and then partially exempt over the following five years in decreasing percentages (75%, 50%, 25%, 15% and 5%). This tax exemption will lower upfront costs, making ADU construction more feasible and increasing the housing supply. This in turn will provide lower cost housing options for seniors on fixed incomes, young-professionals, and others. Eligible ADUs cannot be utilized for short term rentals. The effective date of this local law upon passage will be January 1, 2026.
