S. 2782 2
subsequent to the commencement and prior to the completion of THE
INITIAL construction PERIOD, but not to exceed three such tax years, and
shall continue to be exempt from such taxation in tax years immediately
following the taxable status date first occurring after the expiration
of the exemption herein conferred during THE INITIAL construction [so
long as used at the completion of construction for dwelling purposes]
PERIOD for a period not to exceed ten years in the aggregate after the
taxable status date immediately following the completion [thereof] OF
THE INITIAL CONSTRUCTION PERIOD, as follows:
[(A)] A. except as otherwise provided herein there shall be full
exemption from taxation during the [period of construction or the period
of three years immediately following commencement of construction,
whichever expires sooner] INITIAL CONSTRUCTION PERIOD, and for two years
following such period;
[(B)] B. followed by two years of exemption from eighty [per cent]
PERCENT of such taxation;
[(C)] C. followed by two years of exemption from sixty [per cent]
PERCENT of such taxation;
[(D)] D. followed by two years of exemption from forty [per cent]
PERCENT of such taxation;
[(E)] E. followed by two years of exemption from twenty [per cent]
PERCENT of such taxation[;].
(B) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
FOR DWELLING PURPOSES.
The following table shall illustrate the computation of the tax
exemption:
CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
Exemption
During INITIAL
Construction PERIOD
(maximum three years) 100%
Following completion of [work] THE INITIAL CONSTRUCTION
PERIOD
Year:
1 100%
2 100
3 80
4 80
5 60
6 60
7 40
8 40
9 20
10 20
(ii) (A) Within a city having a population of one million or more the
local housing agency may adopt rules and regulations providing that
except in areas excluded by local law new multiple dwellings, except
hotels, shall be exempt from taxation for local purposes, other than
assessments for local improvements, for the tax year or years immediate-
ly following taxable status dates occurring subsequent to the commence-
ment and prior to the completion of THE INITIAL construction PERIOD, but
S. 2782 3
not to exceed three such tax years, and shall continue to be exempt from
such taxation in tax years immediately following the taxable status date
first occurring after the expiration of the exemption herein conferred
during [such] THE INITIAL construction [so long as used at the
completion of construction for dwelling purposes] PERIOD for a period
not to exceed fifteen years in the aggregate, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the [period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner] INITIAL CONSTRUCTION PERIOD, and for eleven years
following such period;
b. followed by one year of exemption from eighty percent of such taxa-
tion;
c. followed by one year of exemption from sixty percent of such taxa-
tion;
d. followed by one year of exemption from forty percent of such taxa-
tion;
e. followed by one year of exemption from twenty percent of such taxa-
tion.
(B) The benefits of this subparagraph shall not be available in areas
made ineligible for the benefits of this section by a local law enacted
pursuant to paragraph (i) of THIS subdivision [two of this section],
notwithstanding any exceptions to ineligibility contained in such local
law for certain types of projects in such areas.
(C) Unless excluded by local law, in the city of New York the benefits
of this subparagraph shall be available in the borough of Manhattan for
tax lots now existing or hereafter created south of or adjacent to
either side of one hundred tenth street only if:
a. the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or
instrumentality, or
b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units be affordable to families of low and
moderate income.
(D) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
FOR DWELLING PURPOSES.
The following table shall illustrate the computation of the exemption:
CONSTRUCTION OF CERTAIN
MULTIPLE DWELLINGS
Exemption
During INITIAL Construction PERIOD
(maximum three years) 100%
Following completion of [work] THE INITIAL CONSTRUCTION
PERIOD
Year:
1 through 11 100%
12 80
13 60
14 40
15 20
(iii) (A) Within a city having a population of one million or more the
local housing agency may adopt rules and regulations providing that new
S. 2782 4
multiple dwellings, except hotels, shall be exempt from taxation for
local purposes, other than assessments for local improvements, for the
tax year or years immediately following taxable status dates occurring
subsequent to the commencement and prior to the completion of THE
INITIAL construction PERIOD, but not to exceed three such tax years, and
shall continue to be exempt from such taxation in tax years immediately
following the taxable status date first occurring after the expiration
of the exemption herein conferred during [such] THE INITIAL construction
[so long as used at the completion of construction for dwelling
purposes] PERIOD for a period not to exceed twenty-five years in the
aggregate, provided that the area in which the project is situated is a
neighborhood preservation program area as determined by the local hous-
ing agency as of June first, nineteen hundred eighty-five, or is a
neighborhood preservation area as determined by the New York city plan-
ning commission as of June first, nineteen hundred eighty-five, or is an
area that was eligible for mortgage insurance provided by the rehabili-
tation mortgage insurance corporation as of May first, nineteen hundred
ninety-two or is an area receiving funding for a neighborhood preserva-
tion project pursuant to the neighborhood reinvestment corporation act
(42 U.S.C. SS180 et seq.) as of June first, nineteen hundred eighty-
five, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the [period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner] INITIAL CONSTRUCTION PERIOD, and for twenty-one years
following such period;
b. followed by one year of exemption from eighty percent of such taxa-
tion;
c. followed by one year of exemption from sixty percent of such taxa-
tion;
d. followed by one year of exemption from forty percent of such taxa-
tion;
e. followed by one year of exemption from twenty percent of such taxa-
tion.
(B) The benefits of this subparagraph shall not be available in areas
made ineligible for the benefits of this section by a local law enacted
pursuant to paragraph (i) of THIS subdivision [two of this section],
notwithstanding any exceptions to ineligibility contained in such local
law for certain types of projects.
(C) Notwithstanding the provisions of item (A) or (D) of this subpara-
graph, in the city of New York the benefits of this subparagraph shall
not be available in the borough of Manhattan for tax lots now existing
or hereafter created south of or adjacent to either side of one hundred
tenth street.
(D) In addition to being available in the areas described in item (A)
of this subparagraph, the benefits made available pursuant to this
subparagraph shall be available where:
a. the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or
instrumentality, or
b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units be affordable to families of low and
moderate income.
(E) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
FOR DWELLING PURPOSES.
S. 2782 5
The following table shall illustrate the computation of the exemption:
CONSTRUCTION OF CERTAIN
MULTIPLE DWELLINGS
Exemption
During INITIAL 100%
Construction PERIOD (maximum
three years)
Following completion of [work]
THE INITIAL CONSTRUCTION PERIOD
Year:
1 through 21 100%
22 80
23 60
24 40
25 20
[(E)] (F) A new multiple dwelling that is situated in (1) a neighbor-
hood preservation program area as determined by the department of hous-
ing preservation and development as of June first, nineteen hundred
eighty-five, (2) a neighborhood preservation area as determined by the
New York city planning commission as of June first, nineteen hundred
eighty-five, (3) an area that was eligible for mortgage insurance
provided by the rehabilitation mortgage insurance corporation as of May
first, nineteen hundred ninety-two, or (4) an area receiving funding for
a neighborhood preservation project pursuant to the neighborhood rein-
vestment corporation act (42 U.S.C. SS 8101 et seq.) as of June first,
nineteen hundred eighty-five, shall not be eligible for the benefits
available pursuant to this subparagraph unless it complies with the
provisions of subdivision seven of this section.
(iv) (A) Unless excluded by local law, in the city of New York, the
benefits of this subparagraph shall be available in the borough of
Manhattan for new multiple dwellings on tax lots now existing or here-
after created south of or adjacent to either side of one hundred tenth
street which commence construction after July first, nineteen hundred
ninety-two and before December twenty-eighth, two thousand [ten] THIR-
TEEN only if:
a. the construction is carried out with the substantial assistance of
grants, loans or subsidies from any federal, state or local agency or
instrumentality, or
b. the local housing agency has imposed a requirement or has certified
that twenty percent of the units are affordable to families of low and
moderate income.
(B) Such new multiple dwellings, except hotels, shall be exempt from
taxation for local purposes, other than assessments for local improve-
ments for the tax year or years immediately following taxable status
dates occurring subsequent to the commencement and prior to the
completion of THE INITIAL construction PERIOD, but not to exceed three
such tax years, and shall continue to be exempt from such taxation in
tax years immediately following the taxable status dates first occurring
after the expiration of the exemption herein conferred during [such] THE
INITIAL construction [so long as used at the completion of construction
for dwelling purposes] PERIOD for a period not to exceed twenty years in
the aggregate, as follows:
S. 2782 6
a. except as otherwise provided herein, there shall be full exemption
from taxation during the [period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner] INITIAL CONSTRUCTION PERIOD, and for twelve years
following such period;
b. followed by two years of exemption from eighty percent of such
taxation;
c. followed by two years of exemption from sixty percent of such taxa-
tion;
d. followed by two years of exemption from forty percent of such taxa-
tion;
e. followed by two years of exemption from twenty percent of such
taxation.
(C) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
FOR DWELLING PURPOSES.
The following table shall illustrate the computation of the exemption:
CONSTRUCTION OF CERTAIN
MULTIPLE DWELLINGS
During [construction] INITIAL CONSTRUCTION PERIOD
(maximum three years) Exemption 100%
Following completion of [work year:] THE INITIAL CONSTRUCTION
PERIOD
YEAR:
1 through 12 100%
13-14 80%
15-16 60%
17-18 40%
19-20 20%
S 3. Subparagraph (ii) of paragraph (c) of subdivision 2 of section
421-a of the real property tax law, as amended by chapter 618 of the
laws of 2007, is amended to read as follows:
(ii) construction is commenced after January first, nineteen hundred
seventy-five and before December twenty-eighth, two thousand [ten] THIR-
TEEN provided, however, that such commencement period shall not apply to
multiple dwellings eligible for benefits under subparagraph (iv) of
paragraph (a) of this subdivision;
S 4. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
erty tax law, as amended by chapter 995 of the laws of 1981, is amended
to read as follows:
(g) [For] NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN ANY
OTHER STATE OR LOCAL LAW, FOR purposes of this section, construction
shall be deemed "commenced" [when excavation or alteration has begun in
good faith on the basis of approved construction plans] UPON THE DATE
THAT, PURSUANT TO ANY PERMIT APPROVED BY A DEPARTMENT OF BUILDINGS: (I)
A NEW METAL OR CONCRETE STRUCTURE THAT SHALL PERFORM A LOAD BEARING
FUNCTION IS INSTALLED AS PART OF A FOUNDATION; (II) AT LEAST ONE FULLY
DRIVEN PILE OR CAISSION IS INSTALLED; OR (III) THE ACTUAL CONSTRUCTION,
ALTERATION, OR IMPROVEMENT OF A PRE-EXISTING BUILDING OR STRUCTURE
BEGINS IN A PROJECT THAT INCLUDES NEW RESIDENTIAL CONSTRUCTION AND THE
CONCURRENT CONVERSION, ALTERATION OR IMPROVEMENT OF A PRE-EXISTING
BUILDING OR STRUCTURE. PROVIDED, HOWEVER, THAT WITH RESPECT TO SUBPARA-
S. 2782 7
GRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, THE CONSTRUCTION OF SUCH
MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
S 5. The opening paragraph and paragraph (iv) of subdivision 3 of
section 421-a of the real property tax law, the opening paragraph as
amended by chapter 655 of the laws of 1978 and paragraph (iv) as amended
by chapter 703 of the laws of 1976 and such section as renumbered by
chapter 110 of the laws of 1977, are amended to read as follows:
[Application forms for exemption under this section shall be filed
with the assessors between February first and March fifteenth and, based
on the certification of the local housing agency as herein provided, the
assessors shall certify to the collecting officer the amount of taxes to
be abated.] If there be in a city of one million population or more a
department of housing preservation and development, the term "housing
agency" shall mean only such department of housing preservation and
development. [No such application shall be accepted by the assessors
unless accompanied by a certificate of the local housing agency certify-
ing the applicant's eligibility pursuant to subdivisions two and four of
this section.] No [such] certification of eligibility FOR BENEFITS
PURSUANT TO THIS SECTION shall be issued by the local housing agency
until such agency determines the initial adjusted monthly rent to be
paid by tenants residing in rental dwelling units contained within the
multiple dwelling and the comparative adjusted monthly rent that would
have to be paid by such tenants if no tax exemption were applicable as
provided by this section. The initial adjusted monthly rent will be
certified by the local housing agency as the first rent for the subject
dwelling units. A copy of such certification with respect to such units
shall be attached by the applicant to the first effective lease or occu-
pancy agreement. The initial adjusted monthly rent shall reflect the
full tax exemption benefits as approved by the agency.
(iv) The adjusted monthly rent per room per month shall be multiplied
by the room count of each rental dwelling unit to provide the initial
adjusted monthly rent for such dwelling unit. The agency may allow
adjustments in the initial adjusted monthly rent for any particular
dwelling units provided that the total of the initial adjusted monthly
rents for all of the rental dwelling units in a multiple dwelling shall
not exceed the total expenses of such multiple dwelling.
The agency shall determine the estimated comparative adjusted monthly
rent that would have to be paid if no tax exemption were applicable as
provided by this section by adding to the adjusted monthly rent for each
dwelling unit as hereinabove computed an amount equal to (a) the differ-
ence between the projected real property taxes which would be levied on
the multiple dwelling and the land on which it is situated at the time
OF estimated initial occupancy if no tax abatement were applicable as
provided by this section and the projected real property taxes hereina-
bove utilized in connection with the computation of total expenses; (b)
divided by the room count of the building as per this section; and (c)
multiplied by the applicants approved room count of each such dwelling
unit.
The local housing agency may promulgate rules and regulations to carry
out the provisions of this section, not inconsistent with the provisions
hereof, [and may require a reasonable filing fee in an amount provided
by such rules and regulations] INCLUDING, BUT NOT LIMITED TO, RULES AND
REGULATIONS RELATING TO THE FILING FEE AUTHORIZED PURSUANT TO PARAGRAPH
B OF SUBDIVISION FOUR OF THIS SECTION.
S. 2782 8
S 6. Paragraph b of subdivision 4 of section 421-a of the real proper-
ty tax law, as added by chapter 744 of the laws of 2004, is amended to
read as follows:
b. The local housing agency [may] SHALL require a filing fee not to
exceed the greater of (i) four-tenths of one percent of the total
project cost, or (ii) if the building will be owned as a cooperative or
condominium, four-tenths of one percent of the total project cost or
four-tenths of one percent of the total project sell-out price stated in
the last amendment to the offering plan accepted for filing by the
attorney general of the state, at the option of the applicant. Such
total project cost or total project sell-out price shall be determined
pursuant to rules promulgated by the local housing agency. Notwithstand-
ing the foregoing, the local housing agency may promulgate rules impos-
ing an additional fee if an application, or any part thereof, or
submission in connection therewith, is defective and such defect delays
the processing of such application or causes the local housing agency to
expend additional resources in the processing of such application.
S 7. Subparagraph (i) of paragraph (a) of subdivision 6 of section
421-a of the real property tax law, as added by chapter 110 of the laws
of 2005, is amended to read as follows:
(i) "Covered project." (A) A new building located within the Green-
point - Williamsburg waterfront exclusion area, (B) two or more build-
ings which are part of one contiguous development entirely located with-
in the Greenpoint - Williamsburg waterfront exclusion area, (C) two or
more buildings which are located within the Greenpoint - Williamsburg
waterfront exclusion area and are part of a single development parcel
specifically identified in section [62-831] 62-931 of the local zoning
resolution, or (D) where so authorized in writing by the local housing
agency, one or more buildings located within the Greenpoint - Williams-
burg waterfront exclusion area and one or more buildings located outside
the Greenpoint - Williamsburg waterfront exclusion area but within
Community District Number One in the borough of Brooklyn. The cumulative
number of affordable units located outside the Greenpoint - Williamsburg
waterfront exclusion area in all covered projects described in clause
(D) of this subparagraph shall not exceed two hundred. A building
located outside the Greenpoint - Williamsburg waterfront exclusion area
which is part of a covered project described in clause (D) of this
subparagraph shall not contain any affordable units with respect to
which an application pending before a governmental entity on [the effec-
tive date of this subdivision] JUNE TWENTY-FIRST, TWO THOUSAND FIVE or a
written agreement in effect on [the effective date of this subdivision]
JUNE TWENTY-FIRST, TWO THOUSAND FIVE provided for the development of
such affordable units.
S 8. Subdivision (c) of section 11-245 of the administrative code of
the city of New York, as amended by local law number 42 of the city of
New York for the year 2003, is amended to read as follows:
(c) No benefits under section four hundred twenty-one-a of the real
property tax law shall be conferred for any construction commenced on or
after November twenty-ninth, nineteen hundred eighty-five of any multi-
ple dwelling, or portion thereof, which is located within any district
in the county of New York where a maximum base floor area ratio, as that
term is defined in the zoning resolution, of fifteen or greater was
permitted as of right by provisions of such resolution in effect on
April fourteenth, nineteen hundred eighty-two; provided, however, that
this limitation on benefits shall not apply to any such construction
commenced on or after October first, nineteen hundred ninety-three and
S. 2782 9
before December [thirty-first] TWENTY-EIGHTH, two thousand [seven] THIR-
TEEN.
S 9. Subdivision 8 of section 421-a of the real property tax law, as
added by chapter 618 of the laws of 2007, subparagraph (i) of paragraph
(a) and paragraph (c) as amended by chapter 15 of the laws of 2008 and
paragraphs (d) and (e) as amended by chapter 619 of the laws of 2007, is
amended to read as follows:
8. (a) As used in this subdivision, the following terms shall have the
following meanings:
(i) "Building service employee" means any person who is regularly
employed at a building who performs work in connection with the care or
maintenance of such building. "Building service employee" includes, but
is not limited to superintendent, watchman, guard, doorman, building
cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator
operator and starter, and window cleaner, but shall not include persons
regularly scheduled to work fewer than eight hours per week in the
building.
(ii) "CONSTRUCTION EMPLOYEE" MEANS A LABORER, WORKER OR MECHANIC IN
THE EMPLOY OF THE CONTRACTOR, SUBCONTRACTOR OR OTHER PERSON DOING OR
CONTRACTING TO DO THE WHOLE OR A PORTION OF THE CONSTRUCTION OF A NEW
MULTIPLE DWELLING.
(III) "Prevailing wage" means the wage determined by the fiscal offi-
cer to be prevailing for the various classes of building service employ-
ees in the locality pursuant to section two hundred thirty of the labor
law, OR THE WAGE DETERMINED BY THE FISCAL OFFICER TO BE PREVAILING FOR
THE VARIOUS CLASSES OF CONSTRUCTION EMPLOYEES IN THE LOCALITY PURSUANT
TO SECTION TWO HUNDRED TWENTY OF THE LABOR LAW.
(b) No benefits under this section shall be conferred for any
construction commenced on or after December twenty-eighth, two thousand
seven for any tax lots now existing or hereafter created except where
the applicant agrees that all building service employees AND
CONSTRUCTION EMPLOYEES employed at the building, whether employed
directly by the applicant or its successors, or through a property
management company [or], a contractor OR A SUBCONTRACTOR, shall receive
the applicable prevailing wage for the duration of the building's tax
exemption.
(c) The limitations contained in paragraph (b) of this subdivision FOR
BUILDING SERVICE EMPLOYEES shall not be applicable to:
(i) projects containing less than fifty dwelling units; or
(ii) buildings where the local housing agency certifies that at
initial occupancy at least fifty percent of the dwelling units are
affordable to individuals or families with a gross household income at
or below one hundred twenty-five percent of the area median income and
that any such units which are located in rental buildings will be
subject to restrictions to insure that they will remain affordable for
the entire period during which they receive benefits under this section.
(d) THE LIMITATIONS CONTAINED IN PARAGRAPH (B) OF THIS SUBDIVISION FOR
CONSTRUCTION EMPLOYEES SHALL NOT BE APPLICABLE TO:
(I) PROJECTS CONTAINING LESS THAN EIGHTY DWELLING UNITS; OR
(II) BUILDINGS WHERE THE LOCAL HOUSING AGENCY CERTIFIES THAT AT
INITIAL OCCUPANCY AT LEAST FIFTY PERCENT OF THE DWELLING UNITS ARE
AFFORDABLE TO INDIVIDUALS OR FAMILIES WITH A GROSS HOUSEHOLD INCOME AT
OR BELOW ONE HUNDRED TWENTY-FIVE PERCENT OF THE AREA MEDIAN INCOME AND
THAT ANY SUCH UNITS WHICH ARE LOCATED IN RENTAL BUILDINGS WILL BE
SUBJECT TO RESTRICTIONS TO INSURE THAT THEY WILL REMAIN AFFORDABLE FOR
THE ENTIRE PERIOD DURING WHICH THEY RECEIVE BENEFITS UNDER THIS SECTION.
S. 2782 10
(E) The local housing agency shall prescribe appropriate sanctions for
failure to comply with the provisions of this subdivision.
[(e)] (F) Solely for purposes of paragraph (b) of this subdivision,
construction shall be deemed to have commenced [when excavation or
alteration has begun in good faith on the basis of approved construction
plans] UPON THE DATE THAT, PURSUANT TO ANY PERMIT APPROVED BY A DEPART-
MENT OF BUILDINGS, (I) A NEW METAL OR CONCRETE STRUCTURE THAT SHALL
PERFORM A LOAD BEARING FUNCTION IS INSTALLED AS PART OF A FOUNDATION,
(II) AT LEAST ONE FULLY DRIVEN PILE OR CAISSION IS INSTALLED, OR (III)
THE ACTUAL CONSTRUCTION, ALTERATION, OR IMPROVEMENT OF A PRE-EXISTING
BUILDING OR STRUCTURE BEGINS IN A PROJECT THAT INCLUDES NEW RESIDENTIAL
CONSTRUCTION AND THE CONCURRENT CONVERSION, ALTERATION OR IMPROVEMENT OF
A PRE-EXISTING BUILDING OR STRUCTURE. PROVIDED, HOWEVER, THAT WITH
RESPECT TO SUBPARAGRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, THE
CONSTRUCTION OF SUCH MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
[(f)] (G) The limitations on eligibility for benefits contained in
this subdivision shall be in addition to those contained in any other
law or regulation.
S 10. The New York city charter is amended by adding a new section
1806 to read as follows:
S 1806. ADDITIONAL FLOOR AREA. ANY PROGRAM THAT ALLOWS FOR ADDITIONAL
FLOOR AREA IN EXCHANGE FOR THE CREATION OF AFFORDABLE HOUSING SHALL
REQUIRE THAT THIRTY PERCENT OF ANY ADDITIONAL FLOOR AREA GENERATED BY
THE PROGRAM BE USED TO PROVIDE AFFORDABLE HOUSING.
S 11. The real property tax law is amended by adding a new section
421-l to read as follows:
S 421-L. EXEMPTION OF CERTAIN PRIVATE HOMES FROM LOCAL TAXATION. 1.
FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
ING MEANINGS:
(A) "COMMENCE CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR DEPARTMENT
OF THE CITY HAVING JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION OF
A PRIVATE HOME AND SUCH WORK HAS BEGIN IN GOOD FAITH IN ACCORDANCE WITH
SUCH PERMIT.
(B) "COMPLETE CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR DEPARTMENT
OF THE CITY HAVING JURISDICTION HAS ISSUED A TEMPORARY OR PERMANENT
CERTIFICATE OF OCCUPANCY FOR ALL RESIDENTIAL AREAS OF THE PRIVATE HOME.
(C) "ELIGIBLE PROJECT" SHALL MEAN A NEWLY CONSTRUCTED PRIVATE HOME,
INCLUDING BOTH LAND AND IMPROVEMENTS, TO BE OCCUPIED AS A RESIDENCE FOR
THE FIRST TIME, WHICH COMMENCES CONSTRUCTION ON OR AFTER JULY FIRST, TWO
THOUSAND NINE AND ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND THIR-
TEEN AND COMPLETES CONSTRUCTION NO LATER THAN DECEMBER THIRTY-FIRST, TWO
THOUSAND FIFTEEN, AND WHICH IS DESIGNED AND OCCUPIED EXCLUSIVELY FOR
RESIDENTIAL PURPOSES.
(D) "EXEMPTION COMMENCEMENT DATE" SHALL MEAN THE FIRST TAXABLE STATUS
DATE AFTER THE LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR
THE SALE TO THE INITIAL PURCHASER OR, IN THE CASE OF A PRIVATE HOME IN A
CONDOMINIUM FORM OF OWNERSHIP, THE FIRST TAXABLE STATUS DATE AFTER THE
LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR THE SALE TO THE
FIRST INITIAL PURCHASER OF A CONDOMINIUM DWELLING UNIT IN SUCH PRIVATE
HOME.
(E) "INITIAL PURCHASER" SHALL MEAN THE FIRST PURCHASER OF A NEWLY
CONSTRUCTED PRIVATE HOME OR, IN THE CASE OF A PRIVATE HOME IN A CONDO-
MINIUM FORM OF OWNERSHIP, THE FIRST PURCHASER OF EACH DWELLING UNIT IN
SUCH NEWLY CONSTRUCTED PRIVATE HOME.
(F) "LOCAL HOUSING AGENCY" SHALL MEAN AN "AGENCY" AS DEFINED PURSUANT
TO SECTION SIX HUNDRED NINETY-TWO OF THE GENERAL MUNICIPAL LAW.
S. 2782 11
(G) "PURCHASE PRICE" SHALL MEAN THE ACTUAL PURCHASE PRICE TO BE PAID
FOR THE PRIVATE HOME BY THE INITIAL PURCHASER.
(H) "MAXIMUM PURCHASE PRICE" SHALL MEAN THE PURCHASE PRICE OF THE
PRIVATE HOME WHICH, IF EXCEEDED, WILL MAKE ANY EXEMPTION HEREUNDER
UNAVAILABLE.
(I) "MAXIMUM EXEMPTION AMOUNT" SHALL MEAN THE PORTION OF THE PURCHASE
PRICE TO BE EXEMPTED FROM TAXATION OF: (I) SIX HUNDRED SEVENTY-ONE THOU-
SAND DOLLARS IN THE CASE OF A PRIVATE HOME CONTAINING ONE DWELLING UNIT,
(II) SEVEN HUNDRED FIFTY-FIVE THOUSAND FIVE HUNDRED FORTY DOLLARS IN THE
CASE OF A PRIVATE HOME CONTAINING TWO DWELLING UNITS, (III) NINE HUNDRED
FOURTEEN THOUSAND SEVEN HUNDRED FIFTY DOLLARS IN THE CASE OF A PRIVATE
HOME CONTAINING THREE DWELLING UNITS, AND (IV) FOUR HUNDRED THOUSAND
DOLLARS FOR EACH INDIVIDUAL CONDOMINIUM UNIT IN THE CASE OF CONDOMINIUM
FORM OF OWNERSHIP IN A PRIVATE HOME. THE MAXIMUM PURCHASE PRICES
PROVIDED IN SUBPARAGRAPHS (I), (II), (III) AND (IV) OF THIS PARAGRAPH
SHALL BE THE LIMIT FOR THE APPLICATION OF ANY EXEMPTION FROM TAXATION
UNDER THIS SECTION. NO EXEMPTION SHALL BE AVAILABLE WHERE THE MAXIMUM
PURCHASE PRICE EXEMPTION IS IN EXCESS OF NINE HUNDRED FIFTY THOUSAND
DOLLARS FOR A ONE, TWO, OR THREE FAMILY PRIVATE HOME OR FOUR HUNDRED
THOUSAND DOLLARS FOR AN INDIVIDUAL CONDOMINIUM UNIT.
(J) "MULTIPLE DWELLING" SHALL MEAN A MULTIPLE DWELLING WITHIN THE
MEANING OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
(K) "PRIVATE HOME" SHALL MEAN AN OWNER OCCUPIED PRIVATE OR MULTIPLE
DWELLING CONTAINING NOT MORE THAN THREE DWELLING UNITS, AS INDICATED ON
THE CERTIFICATE OF OCCUPANCY FOR SUCH STRUCTURE.
2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AN
ELIGIBLE PROJECT SHALL BE EXEMPT FROM ALL LOCAL AND MUNICIPAL TAXES,
OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, DURING THE TAX YEAR OR
YEARS NEXT FOLLOWING THE EXEMPTION COMMENCEMENT DATE AS FOLLOWS: WITH
RESPECT TO PRIVATE HOMES CONTAINING LESS THAN FOUR DWELLING UNITS, TWO
YEARS OF EXEMPTION FROM ALL SUCH TAXES; FOLLOWED BY ONE YEAR OF
EXEMPTION FROM SEVENTY-FIVE PERCENT OF SUCH TAXES; FOLLOWED BY ONE YEAR
OF EXEMPTION FROM SIXTY-TWO AND ONE-HALF PERCENT OF SUCH TAXES; FOLLOWED
BY ONE YEAR OF EXEMPTION FROM FIFTY PERCENT OF SUCH TAXES; FOLLOWED BY
ONE YEAR OF EXEMPTION FROM THIRTY-SEVEN AND ONE-HALF PERCENT OF SUCH
TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWENTY-FIVE PERCENT OF
SUCH TAXES; AND FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWELVE AND
ONE-HALF PERCENT OF SUCH TAXES.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, EXEMPTION FROM LOCAL AND MUNICIPAL TAXES UNDER THIS SECTION SHALL
NOT BE AVAILABLE TO THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH A
PRIVATE HOME IS CONSTRUCTED IF ANY PORTION OF SUCH TAX LOT (LAND AND
IMPROVEMENTS): (I) IS EXEMPT FROM LOCAL AND MUNICIPAL TAXES UNDER ANY
OTHER LAW; (II) CONTAINS A PRIVATE HOME THAT EXCEEDS THE MAXIMUM
PURCHASE PRICE OR AN INDIVIDUAL CONDOMINIUM UNIT THAT EXCEEDS A PURCHASE
PRICE OF FOUR HUNDRED THOUSAND DOLLARS; OR (III) PREVIOUSLY CONTAINED A
PRIVATE OR MULTIPLE DWELLING THAT HAS BEEN FULLY DEMOLISHED AND REMOVED
AND LESS THAN THREE YEARS HAVE ELAPSED BETWEEN THE DATE OF ISSUANCE OF
THE PERMIT AUTHORIZING SUCH DEMOLITION AND REMOVAL AND THE DATE THAT THE
NEW PRIVATE HOME COMMENCES CONSTRUCTION.
(C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH THE PRIVATE HOME IS
CONSTRUCTED SHALL AT ALL TIMES BE SUBJECT TO LOCAL AND MUNICIPAL TAXES
IN AN AMOUNT NOT LESS THAN THE AMOUNT OF LOCAL AND MUNICIPAL TAXES THAT
WOULD BE PAYABLE THEREON BASED UPON THE ASSESSED VALUATION OF THE LAND
S. 2782 12
APPEARING ON THE ASSESSMENT ROLL IN THE FIRST YEAR AFTER COMPLETION OF
CONSTRUCTION.
3. (A) BASED ON THE CERTIFICATION OF THE LOCAL HOUSING AGENCY PURSUANT
TO THIS SECTION CERTIFYING ELIGIBILITY FOR EXEMPTION PURSUANT TO THIS
SECTION, THE DEPARTMENT OF FINANCE OF THE CITY OF NEW YORK SHALL IMPLE-
MENT THE AMOUNT OF EXEMPTION FROM LOCAL AND MUNICIPAL TAXES.
(B) THE LOCAL HOUSING AGENCY MAY PROMULGATE RULES AND REGULATIONS TO
CARRY OUT THE PROVISIONS OF THIS SECTION AND MAY REQUIRE PAYMENT OF A
NON-REFUNDABLE FILING FEE IN THE AMOUNT OF TWO HUNDRED DOLLARS PER
DWELLING UNIT FOR EACH APPLICATION FOR TAX EXEMPTION PURSUANT TO THIS
SECTION.
(C) UPON A FINDING BY THE LOCAL HOUSING AGENCY OR BY ANOTHER AGENCY
DESIGNATED BY SUCH LOCAL HOUSING AGENCY THAT A PRIVATE HOME IS NOT BEING
USED FOR RESIDENTIAL PURPOSES, IS THE SUBJECT OF A VIOLATION FOR AN
ILLEGAL OCCUPANCY, OR NOT OWNER OCCUPIED, EXEMPTION FROM TAXATION UNDER
THIS SECTION SHALL BE REVOKED AND SHALL TERMINATE PROSPECTIVELY;
PROVIDED, HOWEVER, THAT IN THE CASE OF AN ILLEGAL OCCUPANCY, THE OWNER
SHALL REPAY ALL TAXES, WITH INTEREST, FROM WHICH SUCH PRIVATE HOME WAS
EXEMPTED AND SUCH AMOUNT, IF UNPAID, SHALL BECOME A TAX LIEN AGAINST THE
PROPERTY.
S 12. This act shall take effect immediately; provided, however, that
the amendments made to subdivision (c) of section 11-245 of the adminis-
trative code of the city of New York shall be deemed to have been in
full force and effect as of December 31, 2007, and the amendments to
clause (A) of subparagraph (iv) of paragraph (a) of subdivision 2 of
section 421-a of the real property tax law made by section two of this
act, shall be deemed to have been in full force and effect as of Decem-
ber 28, 2010.
