LBD17988-02-0
S. 8438 2
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
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
S. 8438 3
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;
(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
S. 8438 4
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
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)
S. 8438 5
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-
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;
S. 8438 6
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
[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
S. 8438 7
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
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;
S. 8438 8
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
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-
S. 8438 9
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
[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, such section as 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
S. 8438 10
MULTIPLE DWELLING AND/OR LAND ON WHICH IT IS SITUATED IS BEING DEVELOPED
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.
(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
S. 8438 11
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.
(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.
S. 8438 12
(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-
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 APPLICANT AGREES THAT ALL BUILDING SERVICE EMPLOYEES EMPLOYED AT THE
BUILDING, WHETHER EMPLOYED DIRECTLY BY THE APPLICANT 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
S. 8438 13
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.
(H) THE LOCAL HOUSING AGENCY SHALL PRESCRIBE APPROPRIATE SANCTIONS FOR
FAILURE TO COMPLY WITH THE PROVISIONS OF PARAGRAPH (F) OF THIS SUBDIVI-
SION.
(I) THE LIMITATIONS ON ELIGIBILITY FOR BENEFITS CONTAINED IN THE
PROVISIONS OF PARAGRAPH (F) OF THIS SUBDIVISION SHALL BE IN ADDITION TO
THOSE CONTAINED IN ANY OTHER LAW OR REGULATION.
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.
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. Section 17 of chapter 576 of the laws of 1974, amending the
emergency housing rent control law relating to the control of and
stabilization of rent in certain cases, as amended by chapter 82 of the
laws of 2003, is amended to read as follows:
S 17. Effective date. This act shall take effect immediately and
shall remain in full force and effect until and including the fifteenth
day of June [2011] 2019; except that sections two and three shall take
effect with respect to any city having a population of one million or
more and section one shall take effect with respect to any other city,
or any town or village whenever the local legislative body of a city,
town or village determines the existence of a public emergency pursuant
to section three of the emergency tenant protection act of nineteen
seventy-four, as enacted by section four of this act, and provided that
the housing accommodations subject on the effective date of this act to
stabilization pursuant to the New York city rent stabilization law of
nineteen hundred sixty-nine shall remain subject to such law upon the
expiration of this act.
S 19. Subdivision 2 of section 1 of chapter 274 of the laws of 1946,
constituting the emergency housing rent control law, as amended by chap-
ter 82 of the laws of 2003, is amended to read as follows:
2. The provisions of this act, and all regulations, orders and
requirements thereunder shall remain in full force and effect until and
including June 15, [2011] 2019.
S 20. Section 2 of chapter 329 of the laws of 1963, amending the emer-
gency housing rent control law relating to recontrol of rents in Albany,
as amended by chapter 82 of the laws of 2003, is amended to read as
follows:
S 2. This act shall take effect immediately and the provisions of
subdivision 6 of section 12 of the emergency housing rent control law,
as added by this act, shall remain in full force and effect until and
including June 15, [2011] 2019.
S. 8438 14
S 21. Section 10 of chapter 555 of the laws of 1982, amending the
general business law and the administrative code of the city of New York
relating to conversion of residential property to cooperative or condo-
minium ownership in the city of New York, as amended by chapter 82 of
the laws of 2003, is amended to read as follows:
S 10. This act shall take effect immediately; provided, that the
provisions of sections one, two and nine of this act shall remain in
full force and effect only until and including June 15, [2011] 2019;
provided further that the provisions of section three of this act shall
remain in full force and effect only so long as the public emergency
requiring the regulation and control of residential rents and evictions
continues as provided in subdivision 3 of section 1 of the local emer-
gency housing rent control act; provided further that the provisions of
sections four, five, six and seven of this act shall expire in accord-
ance with the provisions of section 26-520 of the administrative code of
the city of New York as such section of the administrative code is, from
time to time, amended; provided further that the provisions of section
26-511 of the administrative code of the city of New York, as amended by
this act, which the New York City Department of Housing Preservation and
Development must find are contained in the code of the real estate
industry stabilization association of such city in order to approve it,
shall be deemed contained therein as of the effective date of this act;
and provided further that any plan accepted for filing by the department
of law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eeee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 22. Section 4 of chapter 402 of the laws of 1983, amending the
general business law relating to conversions of rental residential prop-
erty to cooperative or condominium ownership in certain municipalities
in the counties of Nassau, Westchester and Rockland, as amended by chap-
ter 82 of the laws of 2003, is amended to read as follows:
S 4. This act shall take effect immediately; provided, that the
provisions of sections one and three of this act shall remain in full
force and effect only until and including June 15, [2011] 2019; and
provided further that any plan accepted for filing by the department of
law on or before the effective date of this act shall continue to be
governed by the provisions of section 352-eee of the general business
law as they had existed immediately prior to the effective date of this
act.
S 23. Subdivision 6 of section 46 of chapter 116 of the laws of 1997,
constituting the rent regulation reform act of 1997, as amended by chap-
ter 82 of the laws of 2003, is amended to read as follows:
6. sections twenty-eight, twenty-eight-a, twenty-eight-b and twenty-
eight-c of this act shall expire and be deemed repealed after June 15,
[2011] 2019;
S 24. This act shall take effect immediately.