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

                                  8345

                            I N  S E N A T E

                              June 24, 2010
                               ___________

Introduced  by  Sen.  ESPADA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property  tax  law,  in  relation  to  the  tax
  exemption for multiple dwellings

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

  Section 1. Paragraph (c) of subdivision 1 of section 421-a of the real
property tax law, as amended by chapter 447 of  the  laws  of  2003,  is
amended to read as follows:
  c. "Multiple Dwelling." A dwelling which is to be occupied or is occu-
pied as the residence or home of three or more families living independ-
ently  of  one  another,  whether  such dwelling is rented or owned as a
cooperative or condominium. A new multiple dwelling  shall  include  new
residential  construction  and  the concurrent conversion, alteration or
improvement of a pre-existing building or structure  provided  that  (i)
for  all tax lots now existing or hereafter created, no more than forty-
nine percent of the floor area (as defined in paragraph b of this subdi-
vision) of the multiple dwelling consists of the  pre-existing  building
or  structure  that was converted, altered or improved, and (ii) for tax
lots in the city of New York now existing or  hereafter  created  within
the  following  area  in  the  borough of Manhattan, the new residential
construction and/or the concurrent conversion, alteration or improvement
of the pre-existing building or structure is aided by a grant,  loan  or
subsidy  from  any  federal,  state  or local agency or instrumentality:
beginning at the intersection of the United States pierhead line in  the
Hudson  river  and  the  center line of Chambers street extended, thence
easterly to the center line of Chambers street and continuing along  the
center  line  of  Chambers  street  to the center line of Centre street,
thence southerly along the center line of Centre street  to  the  center
line  of  the Brooklyn Bridge to the intersection of the Brooklyn Bridge
and the United States pierhead line in the East river, thence  northerly
along  the  United States pierhead line in the East river and the center
line of one hundred tenth street extended, thence westerly to the center
line of one hundred tenth street and continuing along the center line of

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

                                                           LBD17846-01-0

S. 8345                             2

one hundred tenth street to its westerly terminus,  thence  westerly  to
the intersection of the center line of one hundred tenth street extended
and the United States pierhead line in the Hudson river, thence souther-
ly  along  the  United  States  pierhead line in the Hudson river to the
point of beginning.   A CONVERTED MULTIPLE DWELLING  SHALL  INCLUDE  THE
CONVERSION  OF  ALL  OR PART OF AND THE CONCURRENT PHYSICAL ADDITION (IF
APPLICABLE) TO ANY PRE-EXISTING BUILDING OR  STRUCTURE  THAT  IS  NOT  A
CLASS A MULTIPLE DWELLING TO A CLASS A MULTIPLE DWELLING, PROVIDED THAT,
FOR  ALL TAX LOTS NOW EXISTING OR HEREAFTER CREATED, (I) AT LEAST SEVEN-
TY-FIVE PERCENT OF THE TOTAL AREA OF THE ORIGINAL PERIMETER  WALLS  MUST
REMAIN  IN  PLACE  AS  PERIMETER WALLS IN THE BUILDING, OR (II) AT LEAST
FIFTY PERCENT OF THE ORIGINAL FLOOR AREA OF THE BUILDING MUST REMAIN  IN
PLACE  AS  FLOOR  AREA,  AND  FURTHER PROVIDED THAT CONSTRUCTION OF SUCH
CONVERTED MULTIPLE DWELLING COMMENCES ON OR AFTER THE EFFECTIVE DATE  OF
THE  CHAPTER  OF  THE  LAWS OF TWO THOUSAND TEN WHICH AMENDED THIS PARA-
GRAPH. WHEREVER THIS SECTION REFERS TO A MULTIPLE DWELLING  OR  MULTIPLE
DWELLINGS  IT  SHALL  BE  TAKEN  TO MEAN BOTH NEW MULTIPLE DWELLINGS AND
CONVERTED MULTIPLE DWELLINGS, AS DEFINED IN THIS PARAGRAPH.
  S 2. Subparagraph (i) of paragraph (a) of  subdivision  2  of  section
421-a  of  the  real  property tax law, as amended by chapter 288 of the
laws of 1985, is amended to read as follows:
  (i) Within a city having a population of  one  million  or  more,  new
multiple  dwellings  AND  CONVERTED  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 construction, but not  to  exceed  three  such  tax
years,  EXCEPT  FOR  NEW  MULTIPLE  DWELLINGS  THE CONSTRUCTION OF WHICH
COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE  THIRTIETH,
TWO  THOUSAND  NINE  WHICH  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
CONSTRUCTION,  BUT  NOT TO EXCEED SIX 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 construction so long as  used  at  the
completion  of  construction  for  dwelling purposes for a period not to
exceed ten years in the aggregate after the taxable  status  date  imme-
diately following the completion thereof, 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, EXCEPT FOR NEW MULTIPLE DWELLINGS  THE  CONSTRUCTION  OF
WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIR-
TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION  DURING  THE  PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS
IMMEDIATELY FOLLOWING COMMENCEMENT OF  CONSTRUCTION,  WHICHEVER  EXPIRES
SOONER, and for two years following such period;
  (B)  followed  by  two years of exemption from eighty per cent of such
taxation;
  (C) followed by two years of exemption from sixty  per  cent  of  such
taxation;
  (D)  followed  by  two  years of exemption from forty per cent of such
taxation;

S. 8345                             3

  (E) followed by two years of exemption from twenty per  cent  of  such
taxation;
  The  following  table  shall  illustrate  the  computation  of the tax
exemption:

               CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS

                                                  Exemption
During Construction (maximum three years,         100%
EXCEPT FOR CONSTRUCTION
COMMENCEMENT BETWEEN JANUARY FIRST,
TWO THOUSAND SEVEN AND JUNE
THIRTIETH, TWO THOUSAND NINE WHICH
HAS A MAXIMUM OF SIX YEARS)
Following completion of work
Year:

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

  S 3. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
of section 421-a of the real property tax law, as amended by chapter 288
of the laws of 1985, is amended to read as follows:
  (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 AND CONVERTED MULTI-
PLE 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
construction, but not to exceed three such tax  years,  EXCEPT  FOR  NEW
MULTIPLE  DWELLINGS  THE CONSTRUCTION OF WHICH COMMENCED BETWEEN JANUARY
FIRST, TWO THOUSAND SEVEN AND JUNE THIRTIETH, TWO  THOUSAND  NINE  WHICH
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 CONSTRUCTION, BUT NOT TO EXCEED SIX SUCH TAX YEARS,
and  shall  continue  to be exempt from such taxation in tax years imme-
diately following the taxable status  date  first  occurring  after  the
expiration of the exemption herein conferred during such construction so
long as used at the completion of construction for dwelling purposes 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, EXCEPT FOR NEW MULTIPLE DWELLINGS  THE  CONSTRUCTION  OF
WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIR-
TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM

S. 8345                             4

TAXATION  DURING  THE  PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS
IMMEDIATELY FOLLOWING COMMENCEMENT OF  CONSTRUCTION,  WHICHEVER  EXPIRES
SOONER, 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.
  S 4. Clause (C) of subparagraph (ii) of paragraph (a) of subdivision 2
of section 421-a of the real property tax law, as amended by chapter 288
of the laws of 1985, is amended to read as follows:
  (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. FOR NEW MULTIPLE DWELLINGS:
  (I) 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.] (II) 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.
  B. FOR CONVERTED MULTIPLE DWELLINGS:
  (I) THE CONSTRUCTION IS CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF
GRANTS, LOANS OR SUBSIDIES FROM ANY FEDERAL, STATE OR  LOCAL  AGENCY  OR
INSTRUMENTALITY, OR
  (II)  THE LOCAL HOUSING AGENCY HAS IMPOSED A REQUIREMENT OR HAS CERTI-
FIED THAT TWENTY PERCENT OF THE UNITS BE AFFORDABLE  TO  FAMILIES  WHOSE
INCOMES  ARE NOT IN EXCESS OR ONE HUNDRED PERCENT OF AREA MEDIAN INCOME.
The following table shall illustrate the computation of the exemption:

                         CONSTRUCTION OF CERTAIN
                           MULTIPLE DWELLINGS

                                                  Exemption
During Construction (maximum three years,         100%
EXCEPT FOR CONSTRUCTION COMMENCEMENT BETWEEN
JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE
THIRTIETH, TWO THOUSAND NINE WHICH HAS A
MAXIMUM OF SIX YEARS)
Following completion of work
Year:
 1 through 11                                     100%
12                                                 80
13                                                 60
14                                                 40
15                                                 20

  S 5. Clause (A) of subparagraph (iii) of paragraph (a) of  subdivision
2  of  section 421-a of the real property tax law, as amended by chapter
702 of the laws of 1992, is amended to read as follows:
  (A) Within a city having a population of one million or more the local
housing agency may adopt rules and regulations providing that new multi-

S. 8345                             5

ple dwellings AND CONVERTED 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 construction, but not  to  exceed  three  such  tax
years,  EXCEPT  FOR  NEW  MULTIPLE  DWELLINGS  THE CONSTRUCTION OF WHICH
COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE  THIRTIETH,
TWO  THOUSAND  NINE  WHICH  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
CONSTRUCTION,  BUT  NOT TO EXCEED SIX 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 construction so long as  used  at
the completion of construction for dwelling purposes 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 housing agency as of June first, nine-
teen hundred eighty-five, or is  a  neighborhood  preservation  area  as
determined  by  the  New York city planning commission as of June first,
nineteen hundred eighty-five, or is an area that was eligible for  mort-
gage  insurance provided by the rehabilitation mortgage insurance corpo-
ration as of May first,  nineteen  hundred  ninety-two  or  is  an  area
receiving  funding  for  a neighborhood preservation 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, EXCEPT FOR NEW MULTIPLE DWELLINGS  THE  CONSTRUCTION  OF
WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIR-
TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION  DURING  THE  PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS
IMMEDIATELY FOLLOWING COMMENCEMENT OF  CONSTRUCTION,  WHICHEVER  EXPIRES
SOONER, 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.
  S  6. Clause (D) of subparagraph (iii) of paragraph (a) of subdivision
2 of section 421-a of the real property tax law, as amended  by  chapter
288 of the laws of 1985, is amended to read as follows:
  (D)  In  addition  to being available in the areas described in [item]
CLAUSE (A) of this subparagraph, the benefits made available pursuant to
this subparagraph shall be available where:
  a. FOR NEW MULTIPLE DWELLINGS:
  (I) the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or  local  agency  or
instrumentality, or

S. 8345                             6

  [b.]  (II)  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.
  B. FOR CONVERTED MULTIPLE DWELLINGS:
  (I) THE CONSTRUCTION IS CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF
GRANTS,  LOANS  OR  SUBSIDIES FROM ANY FEDERAL, STATE OR LOCAL AGENCY OR
INSTRUMENTALITY, OR
  (II) THE LOCAL HOUSING AGENCY HAS IMPOSED A REQUIREMENT OR HAS  CERTI-
FIED  THAT  TWENTY  PERCENT OF THE UNITS BE AFFORDABLE TO FAMILIES WHOSE
INCOMES ARE NOT IN EXCESS OR ONE HUNDRED PERCENT OF AREA MEDIAN INCOME.
  The following table shall illustrate the computation of the exemption:

                         CONSTRUCTION OF CERTAIN
                           MULTIPLE DWELLINGS

                                                  Exemption
During Construction (maximum three                100%
years, EXCEPT FOR
CONSTRUCTION COMMENCEMENT
BETWEEN JANUARY FIRST, TWO
THOUSAND SEVEN AND JUNE THIRTIETH,
TWO THOUSAND NINE WHICH HAS A
MAXIMUM OF SIX YEARS)
Following completion of work
Year:
 1 through 21                                     100%
22                                                 80
23                                                 60
224                                                40
25                                                 20

  S 7. Clause (E) of subparagraph (iii) of paragraph (a) of  subdivision
2 of section 421-a of the real property tax law, as added by chapter 618
of the laws of 2007, is amended to read as follows:
  (E)  A  new multiple dwelling OR A CONVERTED MULTIPLE DWELLING that is
situated in (1) a neighborhood preservation program area  as  determined
by  the  department  of  housing 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  reinvestment  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.
  S  8.  Subparagraph  (iv) of paragraph (a) of subdivision 2 of section
421-a of the real property tax law, as added by chapter 832 of the  laws
of  1992,  item  (A)  as amended by chapter 432 of the laws of 1998, the
opening paragraph of item (A) as amended by chapter 618 of the  laws  of
2007, is amended to read as follows:
  (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 OR CONVERTED MULTIPLE DWELLINGS on
tax lots now existing or hereafter  created  south  of  or  adjacent  to

S. 8345                             7

either  side  of  one  hundred  tenth street which commence construction
after July first, nineteen hundred ninety-two and before December  twen-
ty-eighth, two thousand ten only if:
  a. FOR NEW MULTIPLE DWELLINGS:
  (I) 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.] (II) 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. FOR CONVERTED MULTIPLE DWELLINGS:
  (I) THE CONSTRUCTION IS CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF
GRANTS,  LOANS  OR  SUBSIDIES FROM ANY FEDERAL, STATE OR LOCAL AGENCY OR
INSTRUMENTALITY, OR
  (II) THE LOCAL HOUSING AGENCY HAS IMPOSED A REQUIREMENT OR HAS  CERTI-
FIED  THAT  TWENTY  PERCENT OF THE UNITS BE AFFORDABLE TO FAMILIES WHOSE
INCOMES ARE NOT IN EXCESS OR ONE HUNDRED PERCENT OF AREA MEDIAN INCOME.
  (B) Such new multiple  dwellings  AND  CONVERTED  MULTIPLE  DWELLINGS,
except  hotels,  shall be exempt from taxation for local purposes, other
than assessments for local improvements for the tax year or years  imme-
diately  following  taxable  status  dates  occurring  subsequent to the
commencement and prior to the completion of  construction,  but  not  to
exceed  three  such  tax  years,  EXCEPT  FOR NEW MULTIPLE DWELLINGS THE
CONSTRUCTION OF WHICH COMMENCED  BETWEEN  JANUARY  FIRST,  TWO  THOUSAND
SEVEN  AND  JUNE THIRTIETH, TWO THOUSAND NINE WHICH 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  CONSTRUCTION,  BUT NOT TO EXCEED SIX 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 construction  so  long  as
used at the completion of construction for dwelling purposes for a peri-
od not to exceed twenty 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, EXCEPT FOR NEW MULTIPLE DWELLINGS  THE  CONSTRUCTION  OF
WHICH COMMENCED BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE THIR-
TIETH, TWO THOUSAND NINE WHICH SHALL BE ELIGIBLE FOR FULL EXEMPTION FROM
TAXATION  DURING  THE  PERIOD OF CONSTRUCTION OR THE PERIOD OF SIX YEARS
IMMEDIATELY FOLLOWING COMMENCEMENT OF  CONSTRUCTION,  WHICHEVER  EXPIRES
SOONER, 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.
  The following table shall illustrate the computation of the exemption:

                         CONSTRUCTION OF CERTAIN
                           MULTIPLE DWELLINGS

S. 8345                             8

During construction (maximum three                     Exemption 100%
years, EXCEPT FOR CONSTRUCTION COMMENCEMENT
BETWEEN JANUARY FIRST, TWO THOUSAND SEVEN AND JUNE
THIRTIETH, TWO THOUSAND NINE WHICH HAS A MAXIMUM OF
SIX YEARS)
Following completion of work year:
                  1 through 12                         100%
                    13-14                               80%
                    15-16                               60%
                    17-18                               40%
                    19-20                               20%

  S 9. Paragraph (b) of subdivision 2 of section 421-a of the real prop-
erty  tax law, as amended by chapter 401 of the laws of 1983, is amended
to read as follows:
  (b) In addition to the taxes payable pursuant to the table above,  the
owner shall pay in each tax year in which such full or partial exemption
is in effect, real property taxes and assessments as follows:
  (i)  (A)  FOR  NEW  MULTIPLE  DWELLINGS,  real  property  taxes on the
assessed valuation of such land and any improvements thereon  in  effect
during  the  tax  year  preceding  the commencement of such construction
without regard to any exemption or abatement from real property taxation
in effect prior to such construction which real property taxes shall  be
calculated on the tax rate in effect at the time such taxes are due; and
(B)  FOR  CONVERTED  MULTIPLE  DWELLINGS,  REAL  PROPERTY  TAXES  ON THE
ASSESSED VALUATION OF SUCH LAND IN EFFECT DURING THE TAX YEAR  PRECEDING
THE COMMENCEMENT OF SUCH CONSTRUCTION WITHOUT REGARD TO ANY EXEMPTION OR
ABATEMENT  FROM  REAL PROPERTY TAXATION IN EFFECT AT THE TIME SUCH TAXES
ARE DUE; AND
  (ii) all assessments for local improvements.
  S 10. Paragraph (d) of subdivision 2 of  section  421-a  of  the  real
property  tax  law,  as  amended  by chapter 692 of the laws of 1995, is
amended to read as follows:
  (d) As of July first, nineteen hundred seventy-five, if the  aggregate
floor  area  of  commercial,  community facility and accessory use space
exceeds twelve per cent of the aggregate floor area, as defined  herein,
of  any  building  granted  tax exemption pursuant to this section on or
subsequent to July first, nineteen hundred  seventy-one,  tax  exemption
shall  be  reduced  by  an amount equal to the per cent of the aggregate
floor area by which the aggregate floor area  of  commercial,  community
facility  and  accessory use space exceeds twelve per cent of the aggre-
gate floor area of the building provided, however,  that  accessory  use
space  shall not include accessory parking located not more than twenty-
three feet above the curb level and provided, further, that  whenever  a
building  containing  two  or  more  separately assessed parcels of real
property has commercial, community facility and accessory use  space  in
excess  of  such twelve percent, the tax arising out of the reduction in
exemption for such excess space shall not be apportioned pro rata  among
all  of  the  separately  assessed  parcels in the building but shall be
applied first to those separately assessed parcels which  are  unrelated
to  the  residential  use of the building; and only after such unrelated
parcels are fully taxable shall the remainder of such tax be apportioned
pro rata among the remaining separately assessed  parcels  and  provided
further,  that  no such exemption for commercial, community facility and
accessory use space shall be applicable prior to  July  first,  nineteen
hundred  seventy-five.  To  be eligible for exemption under this section

S. 8345                             9

[such] THE construction OF A NEW MULTIPLE DWELLING shall take  place  on
land  which,  thirty-six  months  prior  to  the  commencement  of  such
construction,  was  vacant,  predominantly  vacant,  under-utilized,  or
improved  with  a non-conforming use, provided that if such new multiple
dwelling displaces or replaces a building or buildings  containing  more
than  twenty-five occupied dwelling units in existence on December thir-
ty-first, nineteen hundred seventy-four and administered under the local
emergency housing rent control act, the rent stabilization law of  nine-
teen hundred sixty-nine, or the emergency tenant protection act of nine-
teen  seventy-four,  such new multiple dwelling shall not be eligible in
the city of New York unless a certificate of eviction  has  been  issued
for any of the displaced or replaced units pursuant to the powers grant-
ed  by the city rent and rehabilitation law, and that the sale, transfer
or utilization of air rights over residential buildings  that  were  not
demolished  shall  not  be construed as a displacement or replacement of
the dwelling units contained within those buildings within  the  meaning
of  this subdivision.   THE LAND UPON WHICH TAKES PLACE THE CONSTRUCTION
OF A CONVERTED MULTIPLE DWELLING SHALL BE DEEMED UNDER-UTILIZED  THIRTY-
SIX  MONTHS PRIOR TO THE COMMENCEMENT OF SUCH CONSTRUCTION AND SHALL NOT
BE SUBJECT TO ANY SITE REQUIREMENTS NOW EXISTING OR HEREAFTER CREATED BY
ANY LOCAL LAW OR ANY RULE OR REGULATION PROMULGATED BY THE LOCAL HOUSING
AGENCY.
  S 11. Paragraph (g) of subdivision 2 of  section  421-a  of  the  real
property  tax  law,  as  amended  by chapter 995 of the laws of 1981, is
amended to read as follows:
  (g)  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] ARCHITECTURAL AND STRUCTURAL plans.
  S  12.  Subdivision 2 of section 421-a of the real property tax law is
amended by adding a new paragraph (j) to read as follows:
  (J) SUBDIVISION (C) OF SECTION 11-245 OF THE  ADMINISTRATIVE  CODE  OF
THE  CITY  OF  NEW YORK SHALL NOT BE APPLICABLE TO ANY MULTIPLE DWELLING
FOR WHICH CONSTRUCTION COMMENCED ON OR  AFTER  OCTOBER  FIRST,  NINETEEN
HUNDRED  NINETY-THREE.  THE PROVISIONS OF THIS PARAGRAPH SHALL BE DEEMED
RETROACTIVE TO AND IN EFFECT AS  OF  DECEMBER  THIRTIETH,  TWO  THOUSAND
SEVEN.
  S  13.  Subparagraph (a) of paragraph (ii) of subdivision 3 of section
421-a of the real property tax law, as amended by  chapter  857  of  the
laws  of  1975  and  renumbered  by  chapter 110 of the laws of 1977, is
amended to read as follows:
  (a) The amount that the agency determines to be the reasonable  annual
costs  for  the  continuing  maintenance  and  operation of the multiple
dwelling in accordance with subdivision four of  this  section.  IF  THE
MULTIPLE  DWELLING AND/OR LAND ON WHICH IT IS SITUATED IS BEING DEVELOP-
MENT PURSUANT TO A GROUND LEASE OR  NET  LEASE,  THE  REASONABLE  ANNUAL
COSTS  FOR  THE  CONTINUING  MAINTENANCE  AND  OPERATION OF THE MULTIPLE
DWELLING SHALL INCLUDE THE AVERAGE ANNUAL GROUND RENT PAYABLE  OVER  THE
DURATION OF BENEFITS PURSUANT TO THIS SECTION;
  S  14. Subdivision 7 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),  subparagraphs  (i) and (ii) of paragraph (d) as amended by chapter
619 of the laws of 2007, and paragraphs (b), (c) and (e) as  amended  by
chapter 15 of the laws of 2008, is amended to read as follows:
  7. (a) For the purposes of this subdivision:
  (i)  "affordable  units" shall mean units which meet the affordability
requirements set forth in paragraph (c) of this subdivision.

S. 8345                            10

  (ii) "geographic exclusion areas" shall mean:
  (A) areas described in subdivision eleven of this section,
  (B)  in  the  borough  of Manhattan tax lots now existing or hereafter
created south of or adjacent to either side of one hundred tenth street,
and
  (C) areas made ineligible for the benefits of this section:
  (1) as set forth in section 11-245 OTHER THAN THOSE AREAS SET FORTH IN
SUBDIVISION (C) OF SECTION 11-245 of the administrative code of the city
of New York on the effective date of this  subdivision,  notwithstanding
any  exceptions to ineligibility contained in such local law for certain
types of projects in such areas,
  (2) as set forth in local law number fifty-eight of the  city  of  New
York  for  the  year two thousand six, notwithstanding any exceptions to
ineligibility contained in such local law for certain types of  projects
in such areas and notwithstanding the effective date of such law, and
  (3) by local law after the effective date of this subdivision.
  (b)  Notwithstanding any provision of this section or any local law to
the contrary, the benefits of this section shall not  be  available  for
new  multiple  dwellings  AND  CONVERTED MULTIPLE DWELLINGS located in a
geographic exclusion area which  commence  construction  after  December
twenty-eighth, two thousand seven unless they comply with the provisions
of   this   subdivision   for   thirty-five  years  from  completion  of
construction  of  the  building  receiving  benefits  pursuant  to  this
section.
  (c)(i) Not less than twenty percent of the units in [the] A NEW multi-
ple dwelling must, upon the initial rental or sale of the units and upon
all  subsequent  rentals  of the units after a vacancy, be affordable to
and occupied or available for occupancy by individuals or families whose
incomes at the time of initial occupancy do not exceed sixty percent  of
the  area  median  incomes  adjusted  for  family  size  or  (ii) if the
construction of such building is carried out with substantial assistance
of grants, loans or subsidies from any federal, state or local agency or
instrumentality and such assistance is provided pursuant  to  a  program
for  the development of affordable housing, not less than twenty percent
of the units in the multiple dwelling must, either (A) upon the  initial
rental of the units and upon all subsequent rentals of the units after a
vacancy,  be  affordable  to  and occupied or available for occupancy by
individuals or families whose incomes at the time of  initial  occupancy
do  not  exceed  one  hundred  twenty percent of the area median incomes
adjusted for family size and, where the multiple dwelling contains  more
than  twenty-five  units,  do not exceed an average of ninety percent of
the area median incomes adjusted  for  family  size,  or  (B)  upon  the
initial  sale  of  the units, be affordable to and occupied or available
for occupancy by individuals or families whose incomes at  the  time  of
initial  occupancy  do not exceed one hundred twenty-five percent of the
area median incomes adjusted for family size.
  (d) (I) NOT LESS THAN TWENTY PERCENT  OF  THE  UNITS  IN  A  CONVERTED
MULTIPLE DWELLING MUST, UPON THE INITIAL RENTAL OR SALE OF THE UNITS AND
UPON  ALL SUBSEQUENT RENTALS OF THE UNITS AFTER A VACANCY, BE AFFORDABLE
TO AND OCCUPIED OR AVAILABLE FOR OCCUPANCY BY  INDIVIDUALS  OR  FAMILIES
WHOSE INCOMES AT THE TIME OF INITIAL OCCUPANCY DO NOT EXCEED ONE HUNDRED
PERCENT  OF  THE AREA MEDIAN INCOMES ADJUSTED FOR FAMILY SIZE OR (II) IF
THE CONSTRUCTION OF  SUCH  BUILDING  IS  CARRIED  OUT  WITH  SUBSTANTIAL
ASSISTANCE  OF  GRANTS,  LOANS  OR  SUBSIDIES FROM ANY FEDERAL, STATE OR
LOCAL AGENCY OR INSTRUMENTALITY, SUCH ASSISTANCE MUST BE PROVIDED PURSU-
ANT TO A PROGRAM FOR THE DEVELOPMENT OF AFFORDABLE HOUSING.

S. 8345                            11

  (E) Unless preempted by federal requirements:
  (i)  all affordable units must have a comparable number of bedrooms as
market rate units and a unit mix proportional to the market rate  units,
or  at least fifty percent of the affordable units must have two or more
bedrooms and no more than fifty percent of the remaining  units  can  be
smaller than one bedroom or in addition to the requirements of paragraph
(c)  of  this subdivision, the floor area of affordable units is no less
than twenty percent of the total floor area of all dwelling units; and
  (ii) residents of the community  board  where  the  multiple  dwelling
which  receives  the benefits provided in this section is located shall,
upon initial occupancy, have priority for  the  purchase  or  rental  of
fifty percent of the affordable units.
  [(e)]  (F)  Notwithstanding  any  provision  of  law  to the contrary,
affordable rental units must remain as rent stabilized units  for  thir-
ty-five  years  from  completion  of  construction provided that tenants
holding a lease and in occupancy at the expiration of the rent  stabili-
zation  period shall have the right to remain as rent stabilized tenants
for the duration of their occupancy.
  [(f)] (G) All affordable  units  must  be  situated  onsite.  For  the
purposes  of  this  section,  "onsite"  shall mean that affordable units
shall be situated within the building or buildings  for  which  benefits
pursuant to this section are being granted.
  [(g)]  (H)  The  limitations  on eligibility for benefits contained in
this subdivision shall be in addition to those contained in this section
and in any other law or regulation.
  S 15. Paragraph (e) of subdivision 8 of  section  421-a  of  the  real
property  tax  law,  as  amended  by chapter 619 of the laws of 2007, is
amended to read as follows:
  (e)  Solely  for  purposes  of  paragraph  (b)  of  this  subdivision,
construction shall be deemed to have commenced when excavation or alter-
ation  has  begun  in good faith on the basis of approved [construction]
ARCHITECTURAL AND STRUCTURAL plans.
  S 16. Section 421-a of the real property tax law is amended by  adding
a new subdivision 16 to read as follows:
  16.  (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, NEW
MULTIPLE DWELLINGS WHICH, ON JULY FIRST, TWO THOUSAND TEN, WERE  EXEMPT,
IN  WHOLE  OR  IN  PART,  FROM  TAXATION  FOR LOCAL PURPOSES, OTHER THAN
ASSESSMENTS FOR LOCAL IMPROVEMENTS, PURSUANT TO  SUBPARAGRAPH  (III)  OR
(IV) OF PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION SHALL BE EXEMPT
FROM TAXATION FOR LOCAL PURPOSES, FOR THE TAX YEAR COMMENCING SUBSEQUENT
TO  THE  ISSUANCE  OF  THE CERTIFICATE BY THE LOCAL HOUSING AGENCY UNDER
PARAGRAPH (C) OF THIS SUBDIVISION.
  (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
SION, A MULTIPLE DWELLING RECEIVING AN EXEMPTION PURSUANT TO THIS SUBDI-
VISION,  SHALL  BE  REQUIRED  TO  PAY TAXES IN AN AMOUNT EQUAL TO TWELVE
PERCENT OF THE ANNUAL "SHELTER RENT". FOR PURPOSES OF THIS  SUBDIVISION,
"SHELTER  RENT"  SHALL MEAN THE TOTAL RENTS RECEIVED FROM OCCUPANTS OF A
MULTIPLE DWELLING LESS THE COST OF PROVIDING TO THE OCCUPANTS  ELECTRIC-
ITY, GAS, HEAT AND OTHER UTILITIES.
  (C) TO BE ELIGIBLE FOR THE EXEMPTION PURSUANT TO THIS SUBDIVISION:
  (I)  THE OWNER OF A MULTIPLE DWELLING MUST FILE WITH THE LOCAL HOUSING
AGENCY AN APPLICATION AT LEAST ONE YEAR PRIOR TO THE EXPIRATION  OF  THE
TAX EXEMPTION RECEIVED BY SUCH MULTIPLE DWELLING PURSUANT TO SUBDIVISION
TWO  OF THIS SECTION. SUCH APPLICATION SHALL BE ON FORMS AS SPECIFIED BY
THE LOCAL HOUSING AGENCY PROVIDED THAT THE LOCAL  HOUSING  AGENCY  SHALL
NOT ACCEPT ANY APPLICATION FILED AFTER DECEMBER TWENTY-EIGHTH, TWO THOU-

S. 8345                            12

SAND THIRTEEN. THE LOCAL HOUSING AGENCY SHALL CERTIFY THE ELIGIBILITY OF
SUCH  MULTIPLE  DWELLING  FOR THE EXEMPTION PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION AND SUCH EXEMPTION SHALL BE EFFECTIVE COMMENCING IN THE
TAX  YEAR:  (A)  SET FORTH IN THE APPLICATION FOR SUCH MULTIPLE DWELLING
WHOSE PHASE-IN OF THE PARTIAL TAX EXEMPTION PURSUANT TO SUBDIVISION  TWO
OF THIS SECTION HAD COMMENCED PRIOR TO THE DATE OF FILING OF SUCH APPLI-
CATION,  AND  (B)  IMMEDIATELY  FOLLOWING  (I)  THE  SECOND FULL YEAR OF
PHASE-IN OF THE PARTIAL TAX EXEMPTION PURSUANT TO SUBPARAGRAPH (III)  OF
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION OR (II) THE FOURTH FULL
YEAR  OF  PHASE-IN OF THE PARTIAL TAX EXEMPTION PURSUANT TO SUBPARAGRAPH
(IV) OF PARAGRAPH (A) OF SUBDIVISION  TWO  OF  THIS  SECTION,  FOR  SUCH
MULTIPLE  DWELLINGS WHOSE PHASE-IN OF THE PARTIAL TAX EXEMPTION PURSUANT
TO SUBDIVISION TWO OF THIS SECTION HAD NOT COMMENCED PRIOR TO  THE  DATE
OF FILING OF THE APPLICATION; AND
  (II)  THE LOCAL HOUSING AGENCY HAS IMPOSED A REQUIREMENT OR HAS CERTI-
FIED THAT TWENTY PERCENT OF THE UNITS  IN  SUCH  MULTIPLE  DWELLING  ARE
AFFORDABLE  TO  FAMILIES OF LOW AND MODERATE INCOME, WHICH AFFORDABILITY
REQUIREMENT SHALL REMAIN IN EFFECT FOR SO LONG AS SUCH MULTIPLE DWELLING
IS RECEIVING AN EXEMPTION PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
  UPON COMMENCEMENT OF THE EXEMPTION PURSUANT TO THIS  SUBDIVISION,  THE
PARTIAL  TAX EXEMPTION UNDER SUBPARAGRAPH (III) OR (IV) OF PARAGRAPH (A)
OF SUBDIVISION TWO OF THIS SECTION SHALL TERMINATE.
  (D) NOTWITHSTANDING THE PROVISIONS OF ANY LOCAL LAW FOR THE STABILIZA-
TION OF RENTS IN MULTIPLE DWELLINGS OR THE EMERGENCY  TENANT  PROTECTION
ACT OF NINETEEN SEVENTY-FOUR, THE RENTS OF A UNIT SHALL BE FULLY SUBJECT
TO CONTROL UNDER SUCH LOCAL LAW OR SUCH ACT FOR THE ENTIRE PERIOD DURING
WHICH  THE PROPERTY IS RECEIVING TAX EXEMPTION PURSUANT TO THIS SUBDIVI-
SION. UPON CONVERSION OF A MULTIPLE DWELLING TO COOPERATIVE OR CONDOMIN-
IUM OWNERSHIP, THE EXEMPTION PROVIDED IN THIS SUBDIVISION  SHALL  TERMI-
NATE.
  (E)  AS  USED IN THIS PARAGRAPH, THE TERMS "BUILDING SERVICE EMPLOYEE"
AND "PREVAILING WAGE" SHALL HAVE THE MEANINGS SET FORTH  IN  SUBDIVISION
EIGHT OF THIS SECTION.
  (F)  NO  BENEFITS  UNDER  THIS  SUBDIVISION  SHALL BE CONFERRED TO ANY
MULTIPLE DWELLING CONTAINING MORE THAN FIFTY DWELLING UNITS EXCEPT WHERE
THE OWNER AGREES THAT ALL BUILDING SERVICE  EMPLOYEES  EMPLOYED  AT  THE
BUILDING,  WHETHER  EMPLOYED DIRECTLY BY THE OWNER OR ITS SUCCESSORS, OR
THROUGH A PROPERTY MANAGEMENT COMPANY OR A CONTRACTOR, SHALL RECEIVE THE
APPLICABLE PREVAILING WAGE FOR THE DURATION OF THE  MULTIPLE  DWELLING'S
TAX EXEMPTION.
  (G)  THE  LIMITATIONS  CONTAINED  IN PARAGRAPH (F) OF THIS SUBDIVISION
SHALL NOT BE APPLICABLE TO BUILDINGS  WHERE  THE  LOCAL  HOUSING  AGENCY
CERTIFIES THAT AT INITIAL OCCUPANCY AT LEAST FIFTY PERCENT OF THE DWELL-
ING  UNITS ARE AFFORDABLE TO INDIVIDUALS OR FAMILIES WITH A GROSS HOUSE-
HOLD INCOME AT OR BELOW ONE HUNDRED  TWENTY-FIVE  PERCENT  OF  THE  AREA
MEDIAN INCOME.
  S  17.  Paragraph  (i)  of  subdivision 2 of section 421-a of the real
property tax law, as amended by chapter 619 of  the  laws  of  2007,  is
amended to read as follows:
  (i)  Authority  of city to enact local law. Except as otherwise speci-
fied in this section, a city to which this  section  is  applicable  may
enact a local law to restrict, limit or condition the eligibility, scope
or amount of the benefits under this section in any manner provided that
such  local  law  may  not  grant benefits beyond those provided in this
section and provided further that in the city of New York such local law
shall not take  effect  sooner  than  one  year  after  it  is  enacted.

S. 8345                            13

Notwithstanding the foregoing, the provisions of any local law shall not
alter  the  effect  of  subdivisions twelve, thirteen, fourteen, [and] ,
fifteen AND SIXTEEN of this section as they apply on the effective  date
of  such  subdivisions, notwithstanding any subsequent amendments to the
provisions of law referred to in such subdivisions.
  S 18. This act shall take effect immediately.