LBD15755-08-2
A. 10252--C 2
established pursuant to chapter six-D of title twenty-two of the admin-
istrative code of the city of New York except that a building in the
Williamsburg/Greenpoint or North Brooklyn industrial business zones and
a building located in that portion of the Long Island city industrial
business zone that has frontage on either side of forty-seventh avenue
or is located north of forty-seventh avenue and south of Skillman avenue
or in that portion of the Long Island city industrial business zone that
is located north of forty-fourth drive, south of Queens plaza north, and
west of twenty-third street may be included in the term "interim multi-
ple dwelling," or (ii) units in any building, OTHER THAN A BUILDING THAT
IS ALREADY DEFINED AS AN "INTERIM MULTIPLE DWELLING" PURSUANT TO SUBDI-
VISION ONE, TWO, THREE OR FOUR OF THIS SECTION, that, at the time this
subdivision shall take effect AND CONTINUING AT THE TIME OF THE
SUBMISSION OF AN APPLICATION FOR COVERAGE BY ANY PARTY, also contains a
use actively and currently pursued, which use is set forth in use groups
fifteen through eighteen, as described in the zoning resolution of such
municipality in effect on June twenty-first, two thousand ten, and which
the loft board has determined in rules and regulation is inherently
incompatible with residential use in the same building, provided that if
a building does not contain such active uses at the time this subdivi-
sion takes effect, no subsequent use by the owner of the building shall
eliminate the protections of this section for any residential occupants
in the building already qualified for such protections. The term "inter-
im multiple dwelling," as used in this subdivision shall also include
buildings, structures or portions thereof that are located north of West
24th Street and south of West 27th Street and west of tenth avenue and
east of eleventh avenue in a city of more than one million persons which
were occupied for residential purposes as the residence or home of any
two or more families living independently from one another for a period
of twelve consecutive months during the period commencing January first,
two thousand eight, and ending December thirty-first, two thousand nine
and subject to all the conditions and limitations of this subdivision
other than the number of units in the building. A reduction in the
number of occupied residential units in a building after meeting the
aforementioned twelve consecutive month requirement shall not eliminate
the protections of this section for any remaining residential occupants
qualified for such protections. Non-residential space in a building as
of the effective date of this subdivision shall be offered for residen-
tial use only after the obtaining of a residential certificate of occu-
pancy for such space and such space shall be exempt from this article,
even if a portion of such building may be an interim multiple dwelling.
S 2. Subdivision 2 of section 286 of the multiple dwelling law, as
amended by chapter 414 of the laws of 1999, subparagraphs (A) and (B) of
paragraph (ii) and paragraph (iii) as amended by chapter 135 of the laws
of 2010, is amended to read as follows:
2. (i) Prior to compliance with safety and fire protection standards
of article seven-B of this chapter, residential occupants qualified for
protection pursuant to this article shall be entitled to continued occu-
pancy, provided that the unit is their primary residence, and shall pay
the same rent, including escalations, specified in their lease or rental
agreement to the extent to which such lease or rental agreement remains
in effect or, in the absence of a lease or rental agreement, the same
rent most recently paid and accepted by the owner; if there is no lease
or other rental agreement in effect, rent adjustments prior to article
seven-B compliance shall be in conformity with guidelines to be set by
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the loft board for such residential occupants within six months from the
effective date of this article.
(ii) In addition to any rent adjustment pursuant to paragraph (i) of
this subdivision, on or after June twenty-first, nineteen hundred nine-
ty-two, the rent for residential units in interim multiple dwellings
that are not yet in compliance with the requirements of subdivision one
of section two hundred eighty-four of this article shall be adjusted as
follows:
(A) Upon the owners' filing of an alteration application, as required
by paragraph (ii), (iii), (iv), (v), or (vi) of subdivision one of
section two hundred eighty-four of this article, an adjustment equal to
[six] THREE percent of the rent in effect at the time the owner files
the alteration application.
(B) Upon obtaining an alteration permit, as required by paragraph
(ii), (iii), (iv), (v), or (vi) of subdivision one of section two
hundred eighty-four of this article, an adjustment equal to [eight]
THREE percent of the rent in effect at the time the owner obtains the
alteration permit.
(C) Upon achieving compliance with the standards of safety and fire
protection set forth in article seven-B of this chapter for the residen-
tial portions of the building, an adjustment equal to [six] FOUR percent
of the rent in effect at the time the owner achieves such compliance.
(D) Owners who filed an alteration application prior to the effective
date of this subparagraph shall be entitled to a prospective adjustment
equal to six percent of the rent on the effective date of this subpara-
graph.
(E) Owners who obtained an alteration permit prior to June twenty-
first, nineteen hundred ninety-two shall be entitled to a prospective
adjustment equal to fourteen percent of the rent on June twenty-first,
nineteen hundred ninety-two.
(F) Owners who achieved compliance with the standards of safety and
fire protection set forth in article seven-B of this chapter for the
residential portions of the building prior to June twenty-first, nine-
teen hundred ninety-two shall be entitled to a prospective adjustment
equal to twenty percent of the rent on June twenty-first, nineteen
hundred ninety-two.
(iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
sion shall not apply to units which were rented at market value after
June twenty-first, nineteen hundred eighty-two and prior to June twen-
ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
units made subject to this article by subdivision five of section two
hundred eighty-one of this article.
(iv) Payment of any rent adjustments pursuant to paragraph (ii) of
this subdivision shall commence the month immediately following the
month in which the act entitling the owner to the adjustment occurred.
S 3. The provisions of subdivision (c) of section 11-245 of the admin-
istrative code of the city of New York shall not be applicable to any
multiple dwelling located on lots numbered 13 and 14 of Manhattan block
numbered 51, lots numbered 17, 18, and 21 of Manhattan block number 90,
lots numbered 7, 8, 10, 11, 57 and 111 of Manhattan block numbered 1010,
and lots numbered 33, 34 and 35 of Manhattan block numbered 1259 as such
lots and blocks are numbered as of the date this act shall have become
law, provided that the construction of such multiple dwellings on those
lots commences on or after January 1, 2007, and on or before June 21,
2017, and provided that for all such multiple dwellings the department
of housing preservation and development of New York City shall impose a
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requirement and certify that twenty percent of the units on site are
affordable to households of low and moderate income pursuant to subdivi-
sion 7 of section 421-a of the real property tax law. The provisions of
subdivision (c) of section 11-245 of the administrative code of the city
of New York shall not be applicable to any multiple dwelling that is
located on lot 10 of Manhattan block number 123, as such lot and block
are numbered as of the date this act shall have become law, provided
that construction of such multiple dwelling commenced on or after Janu-
ary 1, 2007, and on or before June 21, 2012, and provided further that
the individual or agent thereof seeking benefits pursuant to section
421-a of the real property tax law enters into and fulfills the require-
ments of a memorandum of understanding with the city of New York Depart-
ment of Housing Preservation and Development to fund in an amount not
less than $9 million the construction of affordable rental housing with-
in the City of New York, provided, however, that such amount required
shall be reduced by the value of negotiable certificates that the indi-
vidual or agent thereof seeking benefits purchased, pursuant to section
6-08 of title 28 of the rules of the city of New York as such rules
existed as of the date this act shall have become law, in order to enti-
tle such multiple dwelling to the benefits pursuant to section 421-a of
the real property tax law for a specified number of units in the
geographic exclusion area, provided that such negotiable certificates
were generated by a written agreement with the Department of Housing
Preservation and Development, and provided further that, notwithstanding
any other provision of law, benefits granted pursuant to section 421-a
of the real property tax law for such multiple dwelling shall be granted
as if construction commenced as of the date this act shall have become
law.
S 4. Subparagraph (i) of paragraph (a) of subdivision 2 of section
421-a of the real property tax law, as amended by section 38 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
(i) 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
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, shall
have an additional thirty-six months to complete construction and shall
be eligible for full exemption from taxation for the first three years
of the period of construction; any eligible project that seeks to
utilize the six-year period of construction authorized by this section
must apply for a preliminary certificate of eligibility within one year
of the effective date of the rent act of 2011, provided, however that
such multiple dwellings shall be eligible for a maximum of three years
of benefits during the construction period,] 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 immediately 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
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expires sooner, [except for new multiple dwellings the construction of
which commenced between January first, two thousand seven, and June
thirtieth, two thousand nine, shall have an additional thirty-six months
to complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
construction period,] 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 construction commenced between January
first, two thousand seven and June
thirtieth, two thousand nine (maximum
three 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 5. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
of section 421-a of the real property tax law, as amended by section 39
of part B of chapter 97 of the laws of 2011, 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, 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
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commenced between January first, two thousand seven, and June thirtieth,
two thousand nine, shall have an additional thirty-six months to
complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
construction period,] and shall continue to be exempt from such taxation
in tax years immediately following the taxable status date first occur-
ring 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 aggre-
gate, 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
thirtieth, two thousand nine, shall have an additional thirty-six months
to complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
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.
S 6. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
2 of section 421-a of the real property tax law, as amended by section
40 of part B of chapter 97 of the laws of 2011, 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, 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, shall
have an additional thirty-six months to complete construction and shall
be eligible for full exemption from taxation for the first three years
of the period of construction; any eligible project that seeks to
utilize the six-year period of construction authorized by this section
must apply for a preliminary certificate of eligibility within one year
of the effective date of the rent act of 2011, provided, however that
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such multiple dwellings shall be eligible for a maximum of three years
of benefits during the construction period,] 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, nineteen 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 mortgage insurance provided by the
rehabilitation mortgage insurance corporation as of May first, nineteen
hundred ninety-two or is an area receiving funding for a neighborhood
preservation project pursuant to the neighborhood reinvestment corpo-
ration 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
thirtieth, two thousand nine, shall have an additional thirty-six months
to complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
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.
S 7. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or subpart of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or subpart thereof directly involved in the controversy in which such
judgment shall have been rendered. It is hereby declared to be the
intent of the legislature that this act would have been enacted even if
such invalid provisions had not been included herein.
S 8. This act shall take effect immediately, provided, however, that
the provisions of section one of this act shall be deemed to have been
in full force and effect on and after July 1, 2010; and provided
further, however, that the provisions of section three of this act shall
be deemed to have been in full force and effect on and after December
31, 2007; and provided further, however, that the provisions of sections
four, five and six of this act shall be deemed to have been in full
force and effect on and after December 28, 2010; and provided that, with
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respect to any application for a preliminary certificate of eligibility
that is filed no later than June 24, 2012, or that is filed for a
project that was the subject of mortgage foreclosure proceedings or
other lien enforcement litigation by a lender on or before June 24,
2012, such project shall be subject to that portion of the definition of
"commence" contained in item (1) of clause (iv) of subparagraph (2) of
paragraph (b) of subdivision (a) of section 6-09 of title twenty-eight
of the rules of the city of New York.