S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9680--A
 
                           I N  A S S E M B L Y
 
                               April 3, 2024
                                ___________
 
 Introduced by M. of A. KELLES -- read once and referred to the Committee
   on  Real  Property  Taxation  --  committee  discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the real property tax law, in relation  to  establishing
   an optional local tax exemption for affordable multi-family housing

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 421-p to read as follows:
   §  421-P.  EXEMPTION OF NEWLY-CONSTRUCTED OR CONVERTED RENTAL MULTIPLE
 DWELLINGS. 1.  (A) A CITY, TOWN OR VILLAGE MAY, BY  LOCAL  LAW,  PROVIDE
 FOR  THE EXEMPTION OF RENTAL MULTIPLE DWELLINGS CONSTRUCTED OR CONVERTED
 IN A BENEFIT AREA DESIGNATED IN SUCH LOCAL LAW FROM TAXATION AND SPECIAL
 AD VALOREM LEVIES, AS  PROVIDED  IN  THIS  SECTION.  SUBSEQUENT  TO  THE
 ADOPTION  OF  SUCH A LOCAL LAW, ANY OTHER MUNICIPAL CORPORATION IN WHICH
 THE DESIGNATED BENEFIT AREA IS LOCATED MAY LIKEWISE EXEMPT SUCH PROPERTY
 FROM ITS TAXATION AND SPECIAL AD VALOREM LEVIES BY LOCAL LAW, OR IN  THE
 CASE OF A SCHOOL DISTRICT, BY RESOLUTION.
   (B)  AS  USED  IN THIS SECTION, THE TERM "BENEFIT AREA" MEANS THE AREA
 WITHIN A CITY, TOWN OR VILLAGE, DESIGNATED BY LOCAL  LAW,  TO  WHICH  AN
 EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION, APPLIES.
   (C)  THE TERM "RENTAL MULTIPLE DWELLING" MEANS A STRUCTURE, OTHER THAN
 A HOTEL, CONSISTING OF TWENTY OR MORE DWELLING UNITS, WHERE ALL  OF  THE
 UNITS  ARE RENTED FOR RESIDENTIAL PURPOSES, AND SUCH UNITS, UPON INITIAL
 RENTAL AND UPON EACH SUBSEQUENT RENTAL FOLLOWING A  VACANCY  DURING  THE
 BENEFIT  PERIOD,  ARE AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY INDI-
 VIDUALS OR FAMILIES WHOSE HOUSEHOLD INCOME DOES  NOT  EXCEED  A  CERTAIN
 PERCENTAGE,  AS  DETERMINED  BASED  ON  RECOMMENDATIONS DEVELOPED BY THE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL FOR EACH ECONOMIC  DEVELOPMENT
 REGION, OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, ON AVERAGE,
 AT  THE  TIME THAT SUCH HOUSEHOLDS INITIALLY OCCUPY SUCH DWELLING UNITS.
 SUCH RESTRICTION PERIOD SHALL BE IN EFFECT COTERMINOUS WITH THE  BENEFIT
 PERIOD,  PROVIDED,  HOWEVER,  THAT  THE  TENANT  OR TENANTS IN AN INCOME
 RESTRICTED DWELLING UNIT AT THE TIME SUCH RESTRICTION PERIOD ENDS  SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11990-04-4
 A. 9680--A                          2
 
 HAVE  THE  RIGHT  TO LEASE RENEWALS AT THE INCOME RESTRICTED LEVEL UNTIL
 SUCH TIME AS SUCH TENANT OR  TENANTS  PERMANENTLY  VACATE  THE  DWELLING
 UNIT.
   2.  (A)  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL DEVELOP
 RECOMMENDATIONS FOR EACH ECONOMIC DEVELOPMENT REGION, AS ESTABLISHED  BY
 SECTION  TWO  HUNDRED  THIRTY OF THE ECONOMIC DEVELOPMENT LAW, REGARDING
 THE IMPLEMENTATION OF THE EXEMPTION CREATED UNDER THIS SECTION.  CITIES,
 TOWNS,  AND  VILLAGES  PROVIDING SUCH EXEMPTION SHALL HAVE THE OPTION TO
 OPT INTO SUCH RECOMMENDATIONS.
   (B) SUCH RECOMMENDATIONS SHALL:
   (I) CONSIDER THE FINANCIAL FEASIBILITY OF CONSTRUCTING NEW HOUSING  OR
 CONVERTING A NON-RESIDENTIAL STRUCTURE TO A RENTAL MULTIPLE DWELLING AND
 OPERATING  SUCH  HOUSING  IN EACH ECONOMIC DEVELOPMENT REGION, INCLUDING
 ANY VARIATION IN CONSTRUCTION COSTS AND  OPERATING  INCOMES  FOR  RENTAL
 MULTIPLE  DWELLING  PROJECTS IN DIFFERENT PARTS OF EACH SUCH REGION, AND
 AMONG SUBSIDIZED AND UNREGULATED RENTAL MULTIPLE DWELLING PROJECTS;
   (II)  INCLUDE  RECOMMENDATIONS  FOR  BOTH  RENTAL  MULTIPLE   DWELLING
 PROJECTS  RECEIVING ADDITIONAL SUBSIDIES OR EXEMPTIONS AND RENTAL MULTI-
 PLE DWELLING PROJECTS RECEIVING NO ADDITIONAL SUBSIDIES  OR  EXEMPTIONS;
 AND
   (III)  INCLUDE  RECOMMENDATIONS  FOR THE CONVERSION OF NON-RESIDENTIAL
 PROPERTY FOR RESIDENTIAL USE.
   (C) SUCH RECOMMENDATIONS SHALL BE UPDATED BY THE DIVISION  OF  HOUSING
 AND COMMUNITY RENEWAL NO LESS THAN ONCE EVERY TWO YEARS.
   3.  APPLICATION  FOR  EXEMPTION  UNDER THIS SECTION SHALL BE MADE ON A
 FORM PRESCRIBED BY THE COMMISSIONER AND FILED WITH THE  ASSESSOR  ON  OR
 BEFORE THE APPLICABLE TAXABLE STATUS DATE.
   4.  IN  THE CASE OF A NEWLY CONSTRUCTED OR CONVERTED PROPERTY WHICH IS
 USED PARTIALLY AS A RENTAL MULTIPLE DWELLING AND PARTIALLY  FOR  COMMER-
 CIAL  OR  OTHER  PURPOSES, THE PORTION OF THE PROPERTY THAT IS USED AS A
 RENTAL MULTIPLE DWELLING SHALL BE ELIGIBLE FOR THE EXEMPTION  AUTHORIZED
 BY THIS SECTION IF:
   (A) THE SQUARE FOOTAGE OF THE PORTION USED AS A RENTAL MULTIPLE DWELL-
 ING  REPRESENTS  AT  LEAST  FIFTY  PERCENT  OF THE SQUARE FOOTAGE OF THE
 ENTIRE PROPERTY;
   (B) THE RENTAL UNITS ARE AFFORDABLE  TO  INDIVIDUALS  OR  FAMILIES  AS
 DETERMINED  ACCORDING  TO  THE  CRITERIA  SET  FORTH IN PARAGRAPH (C) OF
 SUBDIVISION ONE OF THIS SECTION; AND
   (C) THE REQUIREMENTS OF THIS  SECTION  ARE  OTHERWISE  SATISFIED  WITH
 RESPECT  TO THE PORTION OF THE PROPERTY USED AS A RENTAL MULTIPLE DWELL-
 ING.
   5. THE EXEMPTION AUTHORIZED BY THIS SECTION SHALL NOT BE AVAILABLE  IN
 A CITY WITH A POPULATION OF ONE MILLION OR MORE.
   6.  ANY RECIPIENT OF THE EXEMPTION AUTHORIZED BY THIS SECTION OR THEIR
 DESIGNEE SHALL CERTIFY COMPLIANCE WITH THE PROVISIONS  OF  THIS  SECTION
 UNDER  PENALTY  OF  PERJURY, AT SUCH TIME OR TIMES AND IN SUCH MANNER AS
 MAY BE PRESCRIBED IN THE LOCAL LAW ADOPTED BY THE CITY, TOWN OR  VILLAGE
 PURSUANT  TO  PARAGRAPH  (A) OF SUBDIVISION ONE OF THIS SECTION, OR BY A
 SUBSEQUENT LOCAL LAW. SUCH CITY, TOWN  OR  VILLAGE  MAY  ESTABLISH  SUCH
 PROCEDURES AS IT DEEMS NECESSARY FOR MONITORING AND ENFORCING COMPLIANCE
 OF AN ELIGIBLE BUILDING WITH THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.