Senate Bill S2893

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

                                  2893

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 3, 2011
                               ___________

Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
  printed  to be committed to the Committee on Housing, Construction and
  Community Development

AN ACT to amend the real property tax law, the  administrative  code  of
  the  city  of  New  York and the New York city charter, in relation to
  changing tax exemption programs for the development of new and afford-
  able housing

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

  Section 1. Subdivision 1 of section 421-a of the real property tax law
is amended by adding two new paragraphs e and f to read as follows:
  E.  "INITIAL  CONSTRUCTION  PERIOD." THE PERIOD OF TIME NEEDED FOR THE
CONSTRUCTION OF A NEW MULTIPLE DWELLING OR THE  PERIOD  OF  THREE  YEARS
IMMEDIATELY  FOLLOWING  COMMENCEMENT  OF CONSTRUCTION, WHICHEVER EXPIRES
SOONER, PROVIDED THAT CONSTRUCTION MUST BE COMPLETED UPON THE EXPIRATION
OF THIS PERIOD IN ORDER FOR SUCH MULTIPLE DWELLING  TO  REMAIN  ELIGIBLE
FOR THE EXEMPTION PROVIDED IN THIS SECTION.
  F.  "EXTENDED  CONSTRUCTION  PERIOD."  THE  PERIOD OF TIME IMMEDIATELY
FOLLOWING  THE  INITIAL  CONSTRUCTION  PERIOD  NEEDED  TO  COMPLETE  THE
CONSTRUCTION  OF  A  NEW MULTIPLE DWELLING OR THE PERIOD OF THREE YEARS,
WHICHEVER EXPIRES SOONER.
  S 2. Paragraph (a) of subdivision 2 of section 421-a of the real prop-
erty tax law, as amended by chapter 288 of the laws of 1985, clause  (A)
of  subparagraph  (iii)  as  amended by chapter 702 of the laws of 1992,
clause (E) of subparagraph (iii) as added and the opening  paragraph  of
item  (A)  of subparagraph (iv) as amended by chapter 618 of the laws of
2007, subparagraph (iv) as added by chapter 832 of the laws of 1992  and
item  (A)  of subparagraph (iv) as amended by chapter 432 of the laws of
1998, is amended to read as follows:
  (a) (i) (A) Within a city having a population of one million or  more,
new multiple dwellings, except hotels, shall be exempt from taxation for

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07026-04-1
              

S. 2893                             2

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 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  AND DURING THE EXTENDED CONSTRUCTION
PERIOD IF SUCH PERIOD IS NEEDED, 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

S. 2893                             3

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
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, AND DURING THE
EXTENDED  CONSTRUCTION PERIOD IF SUCH PERIOD IS NEEDED, 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

S. 2893                             4

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
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,  AND  DURING THE EXTENDED CONSTRUCTION PERIOD IF SUCH
PERIOD IS NEEDED, 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

S. 2893                             5

  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.
  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

S. 2893                             6

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,  AND  DURING THE EXTENDED CONSTRUCTION
PERIOD IF SUCH PERIOD IS NEEDED, for a period 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]  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

S. 2893                             7

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-
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

S. 2893                             8

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 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

S. 2893                             9

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
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] RATE OF WAGES AND SUPPLEMENTS
determined by the fiscal officer to be prevailing for the various class-
es of building service employees in the locality pursuant to section two
hundred thirty of the labor law, OR THE RATE OF  WAGES  AND  SUPPLEMENTS
DETERMINED BY THE FISCAL OFFICER TO BE PREVAILING FOR THE VARIOUS CLASS-
ES  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.  NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW, OR  JUDI-
CIAL  DECISION  TO  THE  CONTRARY, FOR THE PURPOSES OF THIS SECTION SUCH
CONSTRUCTION WHICH MAY INVOLVE THE EMPLOYMENT OF  LABORERS,  WORKERS  OR
MECHANICS,  EXCEPT  AS  PROVIDED  IN  PARAGRAPH (D) OF THIS SUBDIVISION,
SHALL BE DEEMED PUBLIC WORK FOR THE PURPOSES OF  ARTICLE  EIGHT  OF  THE
LABOR  LAW  AND  ALL  CONTRACTS  AND  SUBCONTRACTS WHICH MAY INVOLVE THE
EMPLOYMENT OF LABORERS, WORKERS OR MECHANICS SHALL BE ENFORCEABLE  UNDER
ARTICLE EIGHT OF THE LABOR LAW.
  (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

S. 2893                            10

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.
  (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 BEGUN 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  TEN AND ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND FOUR-
TEEN AND COMPLETES CONSTRUCTION NO LATER THAN DECEMBER THIRTY-FIRST, TWO
THOUSAND SIXTEEN, AND WHICH IS DESIGNED  AND  OCCUPIED  EXCLUSIVELY  FOR
RESIDENTIAL PURPOSES.

S. 2893                            11

  (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.
  (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

S. 2893                            12

OTHER LAW; OR (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.
  (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
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.