Senate Bill S2102

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

                                  2102

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 10, 2013
                               ___________

Introduced  by  Sens.  ESPAILLAT, ADAMS, ADDABBO, DIAZ, DILAN, GIANARIS,
  HASSELL-THOMPSON, LANZA, PARKER,  PERALTA,  PERKINS,  RIVERA,  SAVINO,
  STEWART-COUSINS -- 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,  subpara-
graph  (i)  as amended by section 38, clause (A) of subparagraph (ii) as
amended by section 39, clause (A) of subparagraph (iii)  as  amended  by
section 40, and the opening paragraph of clause (A) of subparagraph (iv)
as  amended  by  section 41 of part B of chapter 97 of the laws of 2011,
clause (E) of subparagraph (iii) as added by chapter 618 of the laws  of
2007,  subparagraph (iv) as added by chapter 832 of the laws of 1992 and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05147-01-3
              

S. 2102                             2

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
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,
except for new multiple dwellings the construction  of  which  commenced
between January first, two thousand seven, and June thirtieth, two thou-
sand  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  imme-
diately  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, 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)] 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

S. 2102                             3

                                                  Exemption
During INITIAL Construction PERIOD                100%
(maximum three years); except
construction commenced between January
first, two thousand seven and June
thirtieth, two thousand nine (maximum
three years)
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
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  [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, 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

S. 2102                             4

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.
  (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
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,
except for new multiple dwellings the construction  of  which  commenced

S. 2102                             5

between January first, two thousand seven, and June thirtieth, two thou-
sand  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  imme-
diately  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  situ-
ated  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] INITIAL CONSTRUCTION PERIOD,  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.
  (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

S. 2102                             6

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.
  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 that commence construction after  July  first,  nineteen  hundred
ninety-two and before June fifteenth, two thousand fifteen 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

S. 2102                             7

  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,  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] THE INITIAL
CONSTRUCTION PERIOD:
                  YEAR:
                  1 through 12                         100%
                    13-14                               80%
                    15-16                               60%
                    17-18                               40%
                    19-20                               20%

  S 3. 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

S. 2102                             8

FUNCTION  IS  INSTALLED AS PART OF A FOUNDATION; (II) AT LEAST ONE FULLY
DRIVEN PILE OR CAISSON 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 4. 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

S. 2102                             9

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 5. 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 6. 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 7. 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

S. 2102                            10

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
before  December  [thirty-first]  TWENTY-EIGHTH,  two  thousand  [seven]
FIFTEEN.
  S  8.  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. 2102                            11

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 CAISSON 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 9. 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  10.  The  real  property tax law is amended by adding a new section
421-n to read as follows:
  S 421-N. 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 TWELVE AND ON OR BEFORE  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
SIXTEEN  AND COMPLETES CONSTRUCTION NO LATER THAN DECEMBER THIRTY-FIRST,
TWO THOUSAND EIGHTEEN, AND WHICH IS DESIGNED  AND  OCCUPIED  EXCLUSIVELY
FOR RESIDENTIAL PURPOSES.

S. 2102                            12

  (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. 2102                            13

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 11. 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.