senate Bill S2782

Alters tax exemption programs for the development of new and affordable housing

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 01 / Feb / 2011
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 04 / Jan / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Alters tax exemption programs for the development of new and affordable housing; defines "initial construction period" and "extended construction period"; makes related changes.

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Bill Details

Versions:
S2782
Legislative Cycle:
2011-2012
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Tax Law
Laws Affected:
Amd §421-a, add §421-l, RPT L; amd §11-245, NYC Ad Cd; add §1806, NYC Chart

Sponsor Memo

BILL NUMBER:S2782

TITLE OF BILL:
An act
to amend the real property tax law, the administrative code of the city
of New York and the New York city charter, in relation to changing tax
exemption programs for the development of new and affordable housing

PURPOSE:
This bill makes several amendments to the 421-a tax abatement
program. The goals of these amendments are: to extend the program for
an additional three years; adjust definitions to more accurately
reflect current construction practices; provide additional incentives
for the continued construction of new and affordable housing units;
and correct current statutory inaccuracies. Additionally, the bill
would provide a tax exemption for new multiple dwellings with three
or fewer units to further incentivize the construction of new housing.

SUMMARY OF PROVISIONS:
This bill amends provisions of section 421-a of
the Real Property Tax Law and the Administrative Code of New York
City. Additionally, new sections are added to the Real Property Tax
Law and to the Charter of the City of New York.

Firstly, two new definitions for construction time periods are created.

Developers would be granted up to an additional three years for
construction. During this time period they would receive the tax
exemptions as outlined in the program. However, any exemption they
receive-during this extended construction period would count towards
the total tax exemption the multiple dwelling is eligible to receive
and would be in an amount and timeframe consistent with a building
that had finished construction during the initial construction
period. After the end of the initial or extended Construction period,
if needed, the multiple dwelling would have to be used for dwelling
purposes.

It would extend the benefits of the program for projects commencing
before December 28, 2010, to projects commending before December 28,
2013.

The bill would also amend the definition of commencement of
construction to more accurately reflect current building practices.

The bill would direct the local housing agency to collect the filing
fee for participating in the 421-a tax, exemption program.

An incorrect reference to the local zoning resolution would be
corrected.

The bill would allow for new developments to participate in the 42l-a
program that are currently located within a district in Manhattan
that allows a maximum base floor area ratio of 15 or greater.

A definition of construction employee would be created. Prevailing
wage requirements would be added for construction employees. However,
an exemption would be create that removes the prevailing wage
requirements for construction employees that work for projects
containing less than eighty dwelling units and projects that make at
least fifty percent of the new housing affordable to individuals and
families with an area median income at or below 125 percent.

The bill would amend the New York City Charter to add a new section
that would require any program that grants additional floor area in
exchange for the construction of affordable housing must also require
that 30 percent of the new floor area, granted by the program, also
be used to provide affordable housing.

This bill would add a new section 421-1 to the Real Property Tax Law
that would exempt newly constructed private homes containing not more
than three dwelling units in cities with a population of one million
or more from all local and municipal taxes, other than assessments
for local improvements. For private homes containing less than four
dwelling units, there would be two years of one hundred percent
exemption followed by a six year phase-out. Such projects would
continue to pay taxes on the value of the land appearing on the
assessment roll in the first year after completion of construction.
The maximum exemption amount, which is based on purchase price, for a
home containing one dwelling unit is $671,000, a home containing two
dwelling units is $755,540, or a home containing three dwelling units
is $914,750.

JUSTIFICATION:
Section 421-a of the Real property Tax Law provides tax
benefits for construction of new residential buildings in the City of
New York.

Section 421-a benefits are available for-up to twenty-five years,
depending upon the location of the Multiple dwelling. It provides a
period of full exemption from local taxes followed by a phase-out
period during which a partial exemption is issued. The continuing
shortage of affordable housing in the City of New York necessitates
the extension of this essential tax exemption program that serves as
an incentive for the development of new housing.

In addition, the proposed legislation eliminates the requirement that
applicants for 421-a benefits file a separate application with the
City of New York's Department of Finance. This will streamline the
application process and eliminate unnecessary paperwork. The proposed
legislation also makes the current application fee previsions
mandatory so that the local housing agency need not promulgate rules
to implement them.

Real Property Tax Law Section 421-b provides an eight-year tax
exemption for certain one. and two-unit multiple dwellings, but that
exemption is only available to projects that commenced construction
before July 1, 2006, and completed construction no later than July 1,
2009. Similarly, Real Property Tax Law Section 421-a formerly
provided a similar
fifteen-year tax exemption for three-unit multiple dwellings, but
Local Law 58 of 2006 of the City of New York, which took effect on
December 28, 2007, will limit such benefits for such multiple
dwellings to those projects that receive substantial governmental
assistance pursuant to an affordable housing program. This amendment
would enable certain one, two, and three-unit newly constructed
private homes that are owner-occupied to continue to receive a tax
exemption for eight years.

LEGISLATIVE HISTORY:
New legislation.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately, provided,
however, that the amendments made to subdivision (c) of section
11-245 of the administrative code of the city of New York shall be
deemed to have been in full force and effect as of December
thirty-first two thousand seven, and the amendments made to
subparagraph (ii) of paragraph (c) of subdivision 2 a of the real
property tax law and clause (A) of subparagraph (iv) of paragraph (a)
of subdivision 2 of section 421-a of the real property tax law shall
be deemed to have been in full force and effect as of December
twenty-eighth two thousand ten.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2782

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 1, 2011
                               ___________

Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
  printed  to be committed to the Committee on Housing, Construction and
  Community Development

AN ACT to amend the real property tax law, the  administrative  code  of
  the  city  of  New  York and the New York city charter, in relation to
  changing tax exemption programs for the development of new and afford-
  able housing

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 421-a of the real property tax law
is amended by adding two new paragraphs e and f to read as follows:
  E.  "INITIAL  CONSTRUCTION  PERIOD." THE PERIOD OF TIME NEEDED FOR THE
CONSTRUCTION OF A NEW MULTIPLE DWELLING OR THE  PERIOD  OF  THREE  YEARS
IMMEDIATELY  FOLLOWING  COMMENCEMENT  OF CONSTRUCTION, WHICHEVER EXPIRES
SOONER.
  F. "EXTENDED CONSTRUCTION PERIOD."  THE  PERIOD  OF  TIME  IMMEDIATELY
FOLLOWING  THE  INITIAL  CONSTRUCTION  PERIOD  NEEDED  TO  COMPLETE  THE
CONSTRUCTION OF A NEW MULTIPLE DWELLING OR THE PERIOD  OF  THREE  YEARS,
WHICHEVER EXPIRES SOONER.
  S 2. Paragraph (a) of subdivision 2 of section 421-a of the real prop-
erty  tax law, as amended by chapter 288 of the laws of 1985, clause (A)
of subparagraph (iii) as amended by chapter 702 of  the  laws  of  1992,
clause  (E)  of subparagraph (iii) as added and the opening paragraph of
item (A) of subparagraph (iv) as amended by chapter 618 of the  laws  of
2007,  subparagraph (iv) as added by chapter 832 of the laws of 1992 and
item (A) of subparagraph (iv) as amended by chapter 432 of the  laws  of
1998, is amended to read as follows:
  (a)  (i) (A) Within a city having a population of one million or more,
new multiple dwellings, except hotels, shall be exempt from taxation for
local purposes, other than assessments for local improvements,  for  the
tax  year  or years immediately following taxable status dates occurring

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07026-01-1

S. 2782                             2

subsequent to the commencement  and  prior  to  the  completion  of  THE
INITIAL construction PERIOD, but not to exceed three such tax years, and
shall  continue to be exempt from such taxation in tax years immediately
following  the  taxable status date first occurring after the expiration
of the exemption herein conferred during THE  INITIAL  construction  [so
long  as  used  at the completion of construction for dwelling purposes]
PERIOD for a period not to exceed ten years in the aggregate  after  the
taxable  status  date  immediately following the completion [thereof] OF
THE INITIAL CONSTRUCTION PERIOD, as follows:
  [(A)] A. except as otherwise  provided  herein  there  shall  be  full
exemption from taxation during the [period of construction or the period
of  three  years  immediately  following  commencement  of construction,
whichever expires sooner] INITIAL CONSTRUCTION PERIOD, and for two years
following such period;
  [(B)] B. followed by two years of exemption  from  eighty  [per  cent]
PERCENT of such taxation;
  [(C)]  C.  followed  by  two  years of exemption from sixty [per cent]
PERCENT of such taxation;
  [(D)] D. followed by two years of  exemption  from  forty  [per  cent]
PERCENT of such taxation;
  [(E)]  E.  followed  by  two years of exemption from twenty [per cent]
PERCENT of such taxation[;].
  (B) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST  BE  USED
FOR DWELLING PURPOSES.
  The  following  table  shall  illustrate  the  computation  of the tax
exemption:

               CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS

                                                  Exemption
During INITIAL
Construction PERIOD
(maximum three years)                             100%
Following completion of [work] THE INITIAL CONSTRUCTION
PERIOD
Year:

 1                                                100%
 2                                                100
 3                                                 80
 4                                                 80
 5                                                 60
 6                                                 60
 7                                                 40
 8                                                 40
 9                                                 20
10                                                 20

  (ii) (A) Within a city having a population of one million or more  the
local  housing  agency  may  adopt  rules and regulations providing that
except in areas excluded by local law  new  multiple  dwellings,  except
hotels,  shall  be  exempt  from taxation for local purposes, other than
assessments for local improvements, for the tax year or years immediate-
ly following taxable status dates occurring subsequent to the  commence-
ment and prior to the completion of THE INITIAL construction PERIOD, but

S. 2782                             3

not to exceed three such tax years, and shall continue to be exempt from
such taxation in tax years immediately following the taxable status date
first  occurring  after the expiration of the exemption herein conferred
during  [such]  THE  INITIAL  construction  [so  long  as  used  at  the
completion of construction for dwelling purposes] PERIOD  for  a  period
not to exceed fifteen years in the aggregate, as follows:
  a.  except  as otherwise provided herein there shall be full exemption
from taxation during the [period of construction or the period of  three
years  immediately  following  commencement  of  construction, whichever
expires sooner]  INITIAL  CONSTRUCTION  PERIOD,  and  for  eleven  years
following such period;
  b. followed by one year of exemption from eighty percent of such taxa-
tion;
  c.  followed by one year of exemption from sixty percent of such taxa-
tion;
  d. followed by one year of exemption from forty percent of such  taxa-
tion;
  e. followed by one year of exemption from twenty percent of such taxa-
tion.
  (B)  The benefits of this subparagraph shall not be available in areas
made ineligible for the benefits of this section by a local law  enacted
pursuant  to  paragraph  (i)  of THIS subdivision [two of this section],
notwithstanding any exceptions to ineligibility contained in such  local
law for certain types of projects in such areas.
  (C) Unless excluded by local law, in the city of New York the benefits
of  this subparagraph shall be available in the borough of Manhattan for
tax lots now existing or hereafter  created  south  of  or  adjacent  to
either side of one hundred tenth street only if:
  a.  the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or  local  agency  or
instrumentality, or
  b. the local housing agency has imposed a requirement or has certified
that  twenty  percent  of the units be affordable to families of low and
moderate income.
  (D) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST  BE  USED
FOR DWELLING PURPOSES.
  The following table shall illustrate the computation of the exemption:

                         CONSTRUCTION OF CERTAIN
                           MULTIPLE DWELLINGS

                                                  Exemption
During INITIAL Construction PERIOD
(maximum three years)                             100%
Following completion of [work] THE INITIAL CONSTRUCTION
PERIOD
Year:
 1 through 11                                     100%
12                                                 80
13                                                 60
14                                                 40
15                                                 20

  (iii) (A) Within a city having a population of one million or more the
local  housing agency may adopt rules and regulations providing that new

S. 2782                             4

multiple dwellings, except hotels, shall be  exempt  from  taxation  for
local  purposes,  other than assessments for local improvements, for the
tax year or years immediately following taxable status  dates  occurring
subsequent  to  the  commencement  and  prior  to  the completion of THE
INITIAL construction PERIOD, but not to exceed three such tax years, and
shall continue to be exempt from such taxation in tax years  immediately
following  the  taxable status date first occurring after the expiration
of the exemption herein conferred during [such] THE INITIAL construction
[so long  as  used  at  the  completion  of  construction  for  dwelling
purposes]  PERIOD  for  a  period not to exceed twenty-five years in the
aggregate, provided that the area in which the project is situated is  a
neighborhood  preservation program area as determined by the local hous-
ing agency as of June first,  nineteen  hundred  eighty-five,  or  is  a
neighborhood  preservation area as determined by the New York city plan-
ning commission as of June first, nineteen hundred eighty-five, or is an
area that was eligible for mortgage insurance provided by the  rehabili-
tation  mortgage insurance corporation as of May first, nineteen hundred
ninety-two or is an area receiving funding for a neighborhood  preserva-
tion  project  pursuant to the neighborhood reinvestment corporation act
(42 U.S.C. SS180 et seq.)  as of June first,  nineteen  hundred  eighty-
five, as follows:
  a.  except  as otherwise provided herein there shall be full exemption
from taxation during the [period of construction or the period of  three
years  immediately  following  commencement  of  construction, whichever
expires sooner] INITIAL CONSTRUCTION PERIOD, and  for  twenty-one  years
following such period;
  b. followed by one year of exemption from eighty percent of such taxa-
tion;
  c.  followed by one year of exemption from sixty percent of such taxa-
tion;
  d. followed by one year of exemption from forty percent of such  taxa-
tion;
  e. followed by one year of exemption from twenty percent of such taxa-
tion.
  (B)  The benefits of this subparagraph shall not be available in areas
made ineligible for the benefits of this section by a local law  enacted
pursuant  to  paragraph  (i)  of THIS subdivision [two of this section],
notwithstanding any exceptions to ineligibility contained in such  local
law for certain types of projects.
  (C) Notwithstanding the provisions of item (A) or (D) of this subpara-
graph,  in  the city of New York the benefits of this subparagraph shall
not be available in the borough of Manhattan for tax lots  now  existing
or  hereafter created south of or adjacent to either side of one hundred
tenth street.
  (D) In addition to being available in the areas described in item  (A)
of  this  subparagraph,  the  benefits  made  available pursuant to this
subparagraph shall be available where:
  a. the construction is carried out with the substantial assistance  of
grants,  loans  or  subsidies from any federal, state or local agency or
instrumentality, or
  b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units be affordable to families  of  low  and
moderate income.
  (E) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION  PERIOD,  IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
FOR DWELLING PURPOSES.

S. 2782                             5

  The following table shall illustrate the computation of the exemption:

                         CONSTRUCTION OF CERTAIN
                           MULTIPLE DWELLINGS

                                                  Exemption
During INITIAL                                    100%
Construction PERIOD (maximum
three years)
Following completion of [work]
THE INITIAL CONSTRUCTION PERIOD
Year:
 1 through 21                                     100%
22                                                 80
23                                                 60
24                                                 40
25                                                 20

  [(E)]  (F) A new multiple dwelling that is situated in (1) a neighbor-
hood preservation program area as determined by the department of  hous-
ing  preservation  and  development  as  of June first, nineteen hundred
eighty-five, (2) a neighborhood preservation area as determined  by  the
New  York  city  planning  commission as of June first, nineteen hundred
eighty-five, (3) an  area  that  was  eligible  for  mortgage  insurance
provided  by the rehabilitation mortgage insurance corporation as of May
first, nineteen hundred ninety-two, or (4) an area receiving funding for
a neighborhood preservation project pursuant to the  neighborhood  rein-
vestment  corporation  act (42 U.S.C. SS 8101 et seq.) as of June first,
nineteen hundred eighty-five, shall not be  eligible  for  the  benefits
available  pursuant  to  this  subparagraph  unless it complies with the
provisions of subdivision seven of this section.
  (iv) (A) Unless excluded by local law, in the city of  New  York,  the
benefits  of  this  subparagraph  shall  be  available in the borough of
Manhattan for new multiple dwellings on tax lots now existing  or  here-
after  created  south of or adjacent to either side of one hundred tenth
street which commence construction after July  first,  nineteen  hundred
ninety-two  and  before December twenty-eighth, two thousand [ten] THIR-
TEEN only if:
  a. the construction is carried out with the substantial assistance  of
grants,  loans  or  subsidies from any federal, state or local agency or
instrumentality, or
  b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units are affordable to families of  low  and
moderate income.
  (B)  Such  new multiple dwellings, except hotels, shall be exempt from
taxation for local purposes, other than assessments for  local  improve-
ments  for  the  tax  year or years immediately following taxable status
dates  occurring  subsequent  to  the  commencement  and  prior  to  the
completion  of  THE INITIAL construction PERIOD, but not to exceed three
such tax years, and shall continue to be exempt from  such  taxation  in
tax years immediately following the taxable status dates first occurring
after the expiration of the exemption herein conferred during [such] THE
INITIAL  construction [so long as used at the completion of construction
for dwelling purposes] PERIOD for a period not to exceed twenty years in
the aggregate, as follows:

S. 2782                             6

  a. except as otherwise provided herein, there shall be full  exemption
from  taxation during the [period of construction or the period of three
years immediately  following  commencement  of  construction,  whichever
expires  sooner]  INITIAL  CONSTRUCTION  PERIOD,  and  for  twelve years
following such period;
  b.  followed  by  two  years  of exemption from eighty percent of such
taxation;
  c. followed by two years of exemption from sixty percent of such taxa-
tion;
  d. followed by two years of exemption from forty percent of such taxa-
tion;
  e. followed by two years of exemption  from  twenty  percent  of  such
taxation.
  (C) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION  PERIOD,  IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
FOR DWELLING PURPOSES.
  The following table shall illustrate the computation of the exemption:

                         CONSTRUCTION OF CERTAIN
                           MULTIPLE DWELLINGS

During [construction] INITIAL CONSTRUCTION PERIOD
(maximum three years)                                  Exemption 100%
Following completion of [work year:] THE INITIAL CONSTRUCTION
PERIOD
                  YEAR:
                  1 through 12                         100%
                    13-14                               80%
                    15-16                               60%
                    17-18                               40%
                    19-20                               20%

  S 3. Subparagraph (ii) of paragraph (c) of subdivision  2  of  section
421-a  of  the  real  property tax law, as amended by chapter 618 of the
laws of 2007, is amended to read as follows:
  (ii) construction is commenced after January first,  nineteen  hundred
seventy-five and before December twenty-eighth, two thousand [ten] THIR-
TEEN provided, however, that such commencement period shall not apply to
multiple  dwellings  eligible  for  benefits  under subparagraph (iv) of
paragraph (a) of this subdivision;
  S 4. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
erty tax law, as amended by chapter 995 of the laws of 1981, is  amended
to read as follows:
  (g)  [For]  NOTWITHSTANDING  ANYTHING TO THE CONTRARY CONTAINED IN ANY
OTHER STATE OR LOCAL LAW, FOR purposes  of  this  section,  construction
shall  be deemed "commenced" [when excavation or alteration has begun in
good faith on the basis of approved construction plans]  UPON  THE  DATE
THAT,  PURSUANT TO ANY PERMIT APPROVED BY A DEPARTMENT OF BUILDINGS: (I)
A NEW METAL OR CONCRETE STRUCTURE THAT  SHALL  PERFORM  A  LOAD  BEARING
FUNCTION  IS  INSTALLED AS PART OF A FOUNDATION; (II) AT LEAST ONE FULLY
DRIVEN PILE OR CAISSION IS INSTALLED; OR (III) THE ACTUAL  CONSTRUCTION,
ALTERATION,  OR  IMPROVEMENT  OF  A  PRE-EXISTING  BUILDING OR STRUCTURE
BEGINS IN A PROJECT THAT INCLUDES NEW RESIDENTIAL CONSTRUCTION  AND  THE
CONCURRENT  CONVERSION,  ALTERATION  OR  IMPROVEMENT  OF  A PRE-EXISTING
BUILDING OR STRUCTURE.  PROVIDED, HOWEVER, THAT WITH RESPECT TO SUBPARA-

S. 2782                             7

GRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, THE CONSTRUCTION  OF  SUCH
MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
  S  5.  The  opening  paragraph  and paragraph (iv) of subdivision 3 of
section 421-a of the real property tax law,  the  opening  paragraph  as
amended by chapter 655 of the laws of 1978 and paragraph (iv) as amended
by  chapter  703  of  the laws of 1976 and such section as renumbered by
chapter 110 of the laws of 1977, are amended to read as follows:
  [Application forms for exemption under this  section  shall  be  filed
with the assessors between February first and March fifteenth and, based
on the certification of the local housing agency as herein provided, the
assessors shall certify to the collecting officer the amount of taxes to
be  abated.]  If  there be in a city of one million population or more a
department of housing preservation and development,  the  term  "housing
agency"  shall  mean  only  such  department of housing preservation and
development. [No such application shall be  accepted  by  the  assessors
unless accompanied by a certificate of the local housing agency certify-
ing the applicant's eligibility pursuant to subdivisions two and four of
this  section.]  No  [such]  certification  of  eligibility FOR BENEFITS
PURSUANT TO THIS SECTION shall be issued by  the  local  housing  agency
until  such  agency  determines  the initial adjusted monthly rent to be
paid by tenants residing in rental dwelling units contained  within  the
multiple  dwelling  and the comparative adjusted monthly rent that would
have to be paid by such tenants if no tax exemption were  applicable  as
provided  by  this  section.   The initial adjusted monthly rent will be
certified by the local housing agency as the first rent for the  subject
dwelling  units. A copy of such certification with respect to such units
shall be attached by the applicant to the first effective lease or occu-
pancy agreement. The initial adjusted monthly  rent  shall  reflect  the
full tax exemption benefits as approved by the agency.
  (iv)  The adjusted monthly rent per room per month shall be multiplied
by the room count of each rental dwelling unit to  provide  the  initial
adjusted  monthly  rent  for  such  dwelling  unit. The agency may allow
adjustments in the initial adjusted  monthly  rent  for  any  particular
dwelling  units  provided that the total of the initial adjusted monthly
rents for all of the rental dwelling units in a multiple dwelling  shall
not exceed the total expenses of such multiple dwelling.
  The  agency shall determine the estimated comparative adjusted monthly
rent that would have to be paid if no tax exemption were  applicable  as
provided by this section by adding to the adjusted monthly rent for each
dwelling unit as hereinabove computed an amount equal to (a) the differ-
ence  between the projected real property taxes which would be levied on
the multiple dwelling and the land on which it is situated at  the  time
OF  estimated  initial  occupancy if no tax abatement were applicable as
provided by this section and the projected real property taxes  hereina-
bove  utilized in connection with the computation of total expenses; (b)
divided by the room count of the building as per this section;  and  (c)
multiplied  by  the applicants approved room count of each such dwelling
unit.
  The local housing agency may promulgate rules and regulations to carry
out the provisions of this section, not inconsistent with the provisions
hereof, [and may require a reasonable filing fee in an  amount  provided
by  such rules and regulations] INCLUDING, BUT NOT LIMITED TO, RULES AND
REGULATIONS RELATING TO THE FILING FEE AUTHORIZED PURSUANT TO  PARAGRAPH
B OF SUBDIVISION FOUR OF THIS SECTION.

S. 2782                             8

  S 6. Paragraph b of subdivision 4 of section 421-a of the real proper-
ty  tax  law, as added by chapter 744 of the laws of 2004, is amended to
read as follows:
  b.  The  local  housing agency [may] SHALL require a filing fee not to
exceed the greater of (i)  four-tenths  of  one  percent  of  the  total
project  cost, or (ii) if the building will be owned as a cooperative or
condominium, four-tenths of one percent of the  total  project  cost  or
four-tenths of one percent of the total project sell-out price stated in
the  last  amendment  to  the  offering  plan accepted for filing by the
attorney general of the state, at the  option  of  the  applicant.  Such
total  project  cost or total project sell-out price shall be determined
pursuant to rules promulgated by the local housing agency. Notwithstand-
ing the foregoing, the local housing agency may promulgate rules  impos-
ing  an  additional  fee  if  an  application,  or  any part thereof, or
submission in connection therewith, is defective and such defect  delays
the processing of such application or causes the local housing agency to
expend additional resources in the processing of such application.
  S  7.  Subparagraph  (i)  of paragraph (a) of subdivision 6 of section
421-a of the real property tax law, as added by chapter 110 of the  laws
of 2005, is amended to read as follows:
  (i)  "Covered  project."  (A) A new building located within the Green-
point - Williamsburg waterfront exclusion area, (B) two or  more  build-
ings which are part of one contiguous development entirely located with-
in  the  Greenpoint - Williamsburg waterfront exclusion area, (C) two or
more buildings which are located within the  Greenpoint  -  Williamsburg
waterfront  exclusion  area  and are part of a single development parcel
specifically identified in section [62-831] 62-931 of the  local  zoning
resolution,  or  (D) where so authorized in writing by the local housing
agency, one or more buildings located within the Greenpoint -  Williams-
burg waterfront exclusion area and one or more buildings located outside
the  Greenpoint  -  Williamsburg  waterfront  exclusion  area but within
Community District Number One in the borough of Brooklyn. The cumulative
number of affordable units located outside the Greenpoint - Williamsburg
waterfront exclusion area in all covered projects  described  in  clause
(D)  of  this  subparagraph  shall  not  exceed  two hundred. A building
located outside the Greenpoint - Williamsburg waterfront exclusion  area
which  is  part  of  a  covered  project described in clause (D) of this
subparagraph shall not contain any  affordable  units  with  respect  to
which an application pending before a governmental entity on [the effec-
tive date of this subdivision] JUNE TWENTY-FIRST, TWO THOUSAND FIVE or a
written  agreement in effect on [the effective date of this subdivision]
JUNE TWENTY-FIRST, TWO THOUSAND FIVE provided  for  the  development  of
such affordable units.
  S  8.  Subdivision (c) of section 11-245 of the administrative code of
the city of New York, as amended by local law number 42 of the  city  of
New York for the year 2003, is amended to read as follows:
  (c)  No  benefits  under section four hundred twenty-one-a of the real
property tax law shall be conferred for any construction commenced on or
after November twenty-ninth, nineteen hundred eighty-five of any  multi-
ple  dwelling,  or portion thereof, which is located within any district
in the county of New York where a maximum base floor area ratio, as that
term is defined in the zoning resolution,  of  fifteen  or  greater  was
permitted  as  of  right  by  provisions of such resolution in effect on
April fourteenth, nineteen hundred eighty-two; provided,  however,  that
this  limitation  on  benefits  shall not apply to any such construction
commenced on or after October first, nineteen hundred  ninety-three  and

S. 2782                             9

before December [thirty-first] TWENTY-EIGHTH, two thousand [seven] THIR-
TEEN.
  S  9.  Subdivision 8 of section 421-a of the real property tax law, as
added by chapter 618 of the laws of 2007, subparagraph (i) of  paragraph
(a)  and  paragraph (c) as amended by chapter 15 of the laws of 2008 and
paragraphs (d) and (e) as amended by chapter 619 of the laws of 2007, is
amended to read as follows:
  8. (a) As used in this subdivision, the following terms shall have the
following meanings:
  (i) "Building service employee" means  any  person  who  is  regularly
employed  at a building who performs work in connection with the care or
maintenance of such building. "Building service employee" includes,  but
is  not  limited  to  superintendent, watchman, guard, doorman, building
cleaner, porter, handyman, janitor,  gardener,  groundskeeper,  elevator
operator  and starter, and window cleaner, but shall not include persons
regularly scheduled to work fewer than  eight  hours  per  week  in  the
building.
  (ii)  "CONSTRUCTION  EMPLOYEE"  MEANS A LABORER, WORKER OR MECHANIC IN
THE EMPLOY OF THE CONTRACTOR, SUBCONTRACTOR OR  OTHER  PERSON  DOING  OR
CONTRACTING  TO  DO  THE WHOLE OR A PORTION OF THE CONSTRUCTION OF A NEW
MULTIPLE DWELLING.
  (III) "Prevailing wage" means the wage determined by the fiscal  offi-
cer to be prevailing for the various classes of building service employ-
ees  in the locality pursuant to section two hundred thirty of the labor
law, OR THE WAGE DETERMINED BY THE FISCAL OFFICER TO BE  PREVAILING  FOR
THE  VARIOUS  CLASSES OF CONSTRUCTION EMPLOYEES IN THE LOCALITY PURSUANT
TO SECTION TWO HUNDRED TWENTY OF THE LABOR LAW.
  (b) No  benefits  under  this  section  shall  be  conferred  for  any
construction  commenced on or after December twenty-eighth, two thousand
seven for any tax lots now existing or hereafter  created  except  where
the   applicant   agrees   that   all  building  service  employees  AND
CONSTRUCTION  EMPLOYEES  employed  at  the  building,  whether  employed
directly  by  the  applicant  or  its  successors, or through a property
management company [or], a contractor OR A SUBCONTRACTOR, shall  receive
the  applicable  prevailing  wage for the duration of the building's tax
exemption.
  (c) The limitations contained in paragraph (b) of this subdivision FOR
BUILDING SERVICE EMPLOYEES shall not be applicable to:
  (i) projects containing less than fifty dwelling units; or
  (ii) buildings where  the  local  housing  agency  certifies  that  at
initial  occupancy  at  least  fifty  percent  of the dwelling units are
affordable to individuals or families with a gross household  income  at
or  below  one hundred twenty-five percent of the area median income and
that any such units which  are  located  in  rental  buildings  will  be
subject  to  restrictions to insure that they will remain affordable for
the entire period during which they receive benefits under this section.
  (d) THE LIMITATIONS CONTAINED IN PARAGRAPH (B) OF THIS SUBDIVISION FOR
CONSTRUCTION EMPLOYEES SHALL NOT BE APPLICABLE TO:
  (I) PROJECTS CONTAINING LESS THAN EIGHTY DWELLING UNITS; OR
  (II) BUILDINGS WHERE  THE  LOCAL  HOUSING  AGENCY  CERTIFIES  THAT  AT
INITIAL  OCCUPANCY  AT  LEAST  FIFTY  PERCENT  OF THE DWELLING UNITS ARE
AFFORDABLE TO INDIVIDUALS OR FAMILIES WITH A GROSS HOUSEHOLD  INCOME  AT
OR  BELOW  ONE HUNDRED TWENTY-FIVE PERCENT OF THE AREA MEDIAN INCOME AND
THAT ANY SUCH UNITS WHICH  ARE  LOCATED  IN  RENTAL  BUILDINGS  WILL  BE
SUBJECT  TO  RESTRICTIONS TO INSURE THAT THEY WILL REMAIN AFFORDABLE FOR
THE ENTIRE PERIOD DURING WHICH THEY RECEIVE BENEFITS UNDER THIS SECTION.

S. 2782                            10

  (E) The local housing agency shall prescribe appropriate sanctions for
failure to comply with the provisions of this subdivision.
  [(e)]  (F)  Solely  for purposes of paragraph (b) of this subdivision,
construction shall be deemed  to  have  commenced  [when  excavation  or
alteration has begun in good faith on the basis of approved construction
plans]  UPON THE DATE THAT, PURSUANT TO ANY PERMIT APPROVED BY A DEPART-
MENT OF BUILDINGS, (I) A NEW METAL  OR  CONCRETE  STRUCTURE  THAT  SHALL
PERFORM  A  LOAD  BEARING FUNCTION IS INSTALLED AS PART OF A FOUNDATION,
(II) AT LEAST ONE FULLY DRIVEN PILE OR CAISSION IS INSTALLED,  OR  (III)
THE  ACTUAL  CONSTRUCTION,  ALTERATION, OR IMPROVEMENT OF A PRE-EXISTING
BUILDING OR STRUCTURE BEGINS IN A PROJECT THAT INCLUDES NEW  RESIDENTIAL
CONSTRUCTION AND THE CONCURRENT CONVERSION, ALTERATION OR IMPROVEMENT OF
A  PRE-EXISTING  BUILDING  OR  STRUCTURE.   PROVIDED, HOWEVER, THAT WITH
RESPECT TO SUBPARAGRAPHS (I), (II) AND  (III)  OF  THIS  PARAGRAPH,  THE
CONSTRUCTION OF SUCH MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
  [(f)]  (G)  The  limitations  on eligibility for benefits contained in
this subdivision shall be in addition to those contained  in  any  other
law or regulation.
  S  10.  The  New  York city charter is amended by adding a new section
1806 to read as follows:
  S 1806. ADDITIONAL FLOOR AREA.  ANY PROGRAM THAT ALLOWS FOR ADDITIONAL
FLOOR AREA IN EXCHANGE FOR THE  CREATION  OF  AFFORDABLE  HOUSING  SHALL
REQUIRE  THAT  THIRTY  PERCENT OF ANY ADDITIONAL FLOOR AREA GENERATED BY
THE PROGRAM BE USED TO PROVIDE AFFORDABLE HOUSING.
  S 11. The real property tax law is amended by  adding  a  new  section
421-l to read as follows:
  S  421-L.  EXEMPTION OF CERTAIN PRIVATE HOMES FROM LOCAL TAXATION.  1.
FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
ING MEANINGS:
  (A) "COMMENCE CONSTRUCTION" SHALL MEAN THAT THE AGENCY  OR  DEPARTMENT
OF  THE CITY HAVING JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION OF
A PRIVATE HOME AND SUCH WORK HAS BEGIN IN GOOD FAITH IN ACCORDANCE  WITH
SUCH PERMIT.
  (B)  "COMPLETE  CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR DEPARTMENT
OF THE CITY HAVING JURISDICTION HAS  ISSUED  A  TEMPORARY  OR  PERMANENT
CERTIFICATE OF OCCUPANCY FOR ALL RESIDENTIAL AREAS OF THE PRIVATE HOME.
  (C)  "ELIGIBLE  PROJECT"  SHALL MEAN A NEWLY CONSTRUCTED PRIVATE HOME,
INCLUDING BOTH LAND AND IMPROVEMENTS, TO BE OCCUPIED AS A RESIDENCE  FOR
THE FIRST TIME, WHICH COMMENCES CONSTRUCTION ON OR AFTER JULY FIRST, TWO
THOUSAND NINE AND ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND THIR-
TEEN AND COMPLETES CONSTRUCTION NO LATER THAN DECEMBER THIRTY-FIRST, TWO
THOUSAND  FIFTEEN,  AND  WHICH  IS DESIGNED AND OCCUPIED EXCLUSIVELY FOR
RESIDENTIAL PURPOSES.
  (D) "EXEMPTION COMMENCEMENT DATE" SHALL MEAN THE FIRST TAXABLE  STATUS
DATE  AFTER THE LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR
THE SALE TO THE INITIAL PURCHASER OR, IN THE CASE OF A PRIVATE HOME IN A
CONDOMINIUM FORM OF OWNERSHIP, THE FIRST TAXABLE STATUS DATE  AFTER  THE
LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR THE SALE TO THE
FIRST  INITIAL  PURCHASER OF A CONDOMINIUM DWELLING UNIT IN SUCH PRIVATE
HOME.
  (E) "INITIAL PURCHASER" SHALL MEAN THE  FIRST  PURCHASER  OF  A  NEWLY
CONSTRUCTED  PRIVATE  HOME OR, IN THE CASE OF A PRIVATE HOME IN A CONDO-
MINIUM FORM OF OWNERSHIP, THE FIRST PURCHASER OF EACH DWELLING  UNIT  IN
SUCH NEWLY CONSTRUCTED PRIVATE HOME.
  (F)  "LOCAL HOUSING AGENCY" SHALL MEAN AN "AGENCY" AS DEFINED PURSUANT
TO SECTION SIX HUNDRED NINETY-TWO OF THE GENERAL MUNICIPAL LAW.

S. 2782                            11

  (G) "PURCHASE PRICE" SHALL MEAN THE ACTUAL PURCHASE PRICE TO  BE  PAID
FOR THE PRIVATE HOME BY THE INITIAL PURCHASER.
  (H)  "MAXIMUM  PURCHASE  PRICE"  SHALL  MEAN THE PURCHASE PRICE OF THE
PRIVATE HOME WHICH, IF  EXCEEDED,  WILL  MAKE  ANY  EXEMPTION  HEREUNDER
UNAVAILABLE.
  (I)  "MAXIMUM EXEMPTION AMOUNT" SHALL MEAN THE PORTION OF THE PURCHASE
PRICE TO BE EXEMPTED FROM TAXATION OF: (I) SIX HUNDRED SEVENTY-ONE THOU-
SAND DOLLARS IN THE CASE OF A PRIVATE HOME CONTAINING ONE DWELLING UNIT,
(II) SEVEN HUNDRED FIFTY-FIVE THOUSAND FIVE HUNDRED FORTY DOLLARS IN THE
CASE OF A PRIVATE HOME CONTAINING TWO DWELLING UNITS, (III) NINE HUNDRED
FOURTEEN THOUSAND SEVEN HUNDRED FIFTY DOLLARS IN THE CASE OF  A  PRIVATE
HOME  CONTAINING  THREE  DWELLING  UNITS, AND (IV) FOUR HUNDRED THOUSAND
DOLLARS FOR EACH INDIVIDUAL CONDOMINIUM UNIT IN THE CASE OF  CONDOMINIUM
FORM  OF  OWNERSHIP  IN  A  PRIVATE  HOME.  THE  MAXIMUM PURCHASE PRICES
PROVIDED IN SUBPARAGRAPHS (I), (II), (III) AND (IV)  OF  THIS  PARAGRAPH
SHALL  BE  THE  LIMIT FOR THE APPLICATION OF ANY EXEMPTION FROM TAXATION
UNDER THIS SECTION. NO EXEMPTION SHALL BE AVAILABLE  WHERE  THE  MAXIMUM
PURCHASE  PRICE  EXEMPTION  IS  IN EXCESS OF NINE HUNDRED FIFTY THOUSAND
DOLLARS FOR A ONE, TWO, OR THREE FAMILY PRIVATE  HOME  OR  FOUR  HUNDRED
THOUSAND DOLLARS FOR AN INDIVIDUAL CONDOMINIUM UNIT.
  (J)  "MULTIPLE  DWELLING"  SHALL  MEAN  A MULTIPLE DWELLING WITHIN THE
MEANING OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
  (K) "PRIVATE HOME" SHALL MEAN AN OWNER OCCUPIED  PRIVATE  OR  MULTIPLE
DWELLING  CONTAINING NOT MORE THAN THREE DWELLING UNITS, AS INDICATED ON
THE CERTIFICATE OF OCCUPANCY FOR SUCH STRUCTURE.
  2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION  OR  MORE,  AN
ELIGIBLE  PROJECT  SHALL  BE  EXEMPT FROM ALL LOCAL AND MUNICIPAL TAXES,
OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, DURING THE  TAX  YEAR  OR
YEARS  NEXT  FOLLOWING  THE EXEMPTION COMMENCEMENT DATE AS FOLLOWS: WITH
RESPECT TO PRIVATE HOMES CONTAINING LESS THAN FOUR DWELLING  UNITS,  TWO
YEARS  OF  EXEMPTION  FROM  ALL  SUCH  TAXES;  FOLLOWED  BY  ONE YEAR OF
EXEMPTION FROM SEVENTY-FIVE PERCENT OF SUCH TAXES; FOLLOWED BY ONE  YEAR
OF EXEMPTION FROM SIXTY-TWO AND ONE-HALF PERCENT OF SUCH TAXES; FOLLOWED
BY  ONE  YEAR OF EXEMPTION FROM FIFTY PERCENT OF SUCH TAXES; FOLLOWED BY
ONE YEAR OF EXEMPTION FROM THIRTY-SEVEN AND  ONE-HALF  PERCENT  OF  SUCH
TAXES;  FOLLOWED  BY  ONE  YEAR OF EXEMPTION FROM TWENTY-FIVE PERCENT OF
SUCH TAXES; AND FOLLOWED BY  ONE  YEAR  OF  EXEMPTION  FROM  TWELVE  AND
ONE-HALF PERCENT OF SUCH TAXES.
  (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, EXEMPTION FROM LOCAL AND MUNICIPAL TAXES UNDER THIS SECTION  SHALL
NOT  BE  AVAILABLE  TO  THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH A
PRIVATE HOME IS CONSTRUCTED IF ANY PORTION OF SUCH  TAX  LOT  (LAND  AND
IMPROVEMENTS):  (I)  IS  EXEMPT FROM LOCAL AND MUNICIPAL TAXES UNDER ANY
OTHER LAW; (II)  CONTAINS  A  PRIVATE  HOME  THAT  EXCEEDS  THE  MAXIMUM
PURCHASE PRICE OR AN INDIVIDUAL CONDOMINIUM UNIT THAT EXCEEDS A PURCHASE
PRICE  OF FOUR HUNDRED THOUSAND DOLLARS; OR (III) PREVIOUSLY CONTAINED A
PRIVATE OR MULTIPLE DWELLING THAT HAS BEEN FULLY DEMOLISHED AND  REMOVED
AND  LESS  THAN THREE YEARS HAVE ELAPSED BETWEEN THE DATE OF ISSUANCE OF
THE PERMIT AUTHORIZING SUCH DEMOLITION AND REMOVAL AND THE DATE THAT THE
NEW PRIVATE HOME COMMENCES CONSTRUCTION.
  (C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
SION, THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH THE PRIVATE HOME IS
CONSTRUCTED  SHALL  AT ALL TIMES BE SUBJECT TO LOCAL AND MUNICIPAL TAXES
IN AN AMOUNT NOT LESS THAN THE AMOUNT OF LOCAL AND MUNICIPAL TAXES  THAT
WOULD  BE  PAYABLE THEREON BASED UPON THE ASSESSED VALUATION OF THE LAND

S. 2782                            12

APPEARING ON THE ASSESSMENT ROLL IN THE FIRST YEAR AFTER  COMPLETION  OF
CONSTRUCTION.
  3. (A) BASED ON THE CERTIFICATION OF THE LOCAL HOUSING AGENCY PURSUANT
TO  THIS  SECTION  CERTIFYING ELIGIBILITY FOR EXEMPTION PURSUANT TO THIS
SECTION, THE DEPARTMENT OF FINANCE OF THE CITY OF NEW YORK SHALL  IMPLE-
MENT THE AMOUNT OF EXEMPTION FROM LOCAL AND MUNICIPAL TAXES.
  (B)  THE  LOCAL HOUSING AGENCY MAY PROMULGATE RULES AND REGULATIONS TO
CARRY OUT THE PROVISIONS OF THIS SECTION AND MAY REQUIRE  PAYMENT  OF  A
NON-REFUNDABLE  FILING  FEE  IN  THE  AMOUNT  OF TWO HUNDRED DOLLARS PER
DWELLING UNIT FOR EACH APPLICATION FOR TAX EXEMPTION  PURSUANT  TO  THIS
SECTION.
  (C)  UPON  A  FINDING BY THE LOCAL HOUSING AGENCY OR BY ANOTHER AGENCY
DESIGNATED BY SUCH LOCAL HOUSING AGENCY THAT A PRIVATE HOME IS NOT BEING
USED FOR RESIDENTIAL PURPOSES, IS THE SUBJECT  OF  A  VIOLATION  FOR  AN
ILLEGAL  OCCUPANCY, OR NOT OWNER OCCUPIED, EXEMPTION FROM TAXATION UNDER
THIS  SECTION  SHALL  BE  REVOKED  AND  SHALL  TERMINATE  PROSPECTIVELY;
PROVIDED,  HOWEVER,  THAT IN THE CASE OF AN ILLEGAL OCCUPANCY, THE OWNER
SHALL REPAY ALL TAXES, WITH INTEREST, FROM WHICH SUCH PRIVATE  HOME  WAS
EXEMPTED AND SUCH AMOUNT, IF UNPAID, SHALL BECOME A TAX LIEN AGAINST THE
PROPERTY.
  S  12. This act shall take effect immediately; provided, however, that
the amendments made to subdivision (c) of section 11-245 of the adminis-
trative code of the city of New York shall be deemed  to  have  been  in
full  force  and  effect  as of December 31, 2007, and the amendments to
clause (A) of subparagraph (iv) of paragraph (a)  of  subdivision  2  of
section  421-a  of the real property tax law made by section two of this
act, shall be deemed to have been in full force and effect as of  Decem-
ber 28, 2010.

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