S T A T E   O F   N E W   Y O R K
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                                  7944

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 1, 2015
                               ___________

Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Housing

AN  ACT to amend the real property tax law, in relation to extending the
  exemption of certain multiple dwellings from local taxation

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

  Section 1. The opening paragraph of clause (A) of subparagraph (iv) of
paragraph (a) of subdivision 2 of section 421-a of the real property tax
law,  as  amended  by  section 41 of part B of chapter 97 of the laws of
2011, is amended to read as follows:
  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 hereafter  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] NINETEEN, only if:
  S  2.  Subparagraph  (ii) of paragraph (c) of subdivision 2 of section
421-a of the real property tax law, as amended by section 42 of  part  B
of chapter 97 of the laws of 2011, is amended to read as follows:
  (ii)  construction  is commenced after January first, nineteen hundred
seventy-five and before June fifteenth, two thousand [fifteen]  NINETEEN
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  3.  Subdivision 7 of section 421-a of the real property tax law, as
added by chapter 618 of the laws of 2007, subparagraph (i) of  paragraph
(a)  and subparagraphs (i) and (ii) of paragraph (d) as amended by chap-
ter 619 of the laws of 2007, and paragraphs (b), (c) and (e) as  amended
by chapter 15 of the laws of 2008, is amended to read as follows:
  7. (a) For the purposes of this subdivision:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11457-01-5

              

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  (i)  "affordable  units" shall mean units which meet the affordability
requirements set forth in paragraph (c) of this subdivision.
  (ii) "geographic exclusion areas" shall mean:
  (A) areas described in subdivision eleven of this section,
  (B)  in  the  borough  of Manhattan tax lots now existing or hereafter
created south of or adjacent to either side of one hundred tenth street,
[and]
  (C) areas made ineligible for the benefits of this section:
  (1) as set forth in section 11-245 of the administrative code  of  the
city  of  New  York  on the effective date of this subdivision, notwith-
standing any exceptions to ineligibility contained in such local law for
certain types of projects in such areas,
  (2) as set forth in local law number fifty-eight of the  city  of  New
York  for  the  year two thousand six, notwithstanding any exceptions to
ineligibility contained in such local law for certain types of  projects
in such areas and notwithstanding the effective date of such law, [and]
  (3) by local law after the effective date of this subdivision[.], AND
  (D) FOR CONSTRUCTION THAT COMMENCES AFTER JUNE FIFTEENTH, TWO THOUSAND
FIFTEEN, ALL REAL PROPERTY LOCATED WITHIN THE GEOGRAPHIC BOUNDARIES OF A
CITY WITH A POPULATION OF ONE MILLION OR MORE.
  (b)  Notwithstanding any provision of this section or any local law to
the contrary, the benefits of this section shall not  be  available  for
new  multiple  dwellings  located  in  a geographic exclusion area which
commence construction after December twenty-eighth, two  thousand  seven
unless  they  comply with the provisions of this subdivision for thirty-
five years from completion of construction  of  the  building  receiving
benefits pursuant to this section.
  (c)  (i)    Not  less than twenty percent of the units in the multiple
dwelling must, upon the initial rental or sale of the units and upon all
subsequent rentals of the units after a vacancy, be  affordable  to  and
occupied  or  available  for  occupancy by individuals or families whose
incomes at the time of initial occupancy do not exceed sixty percent  of
the  area  median  incomes  adjusted  for  family  size  or  (ii) if the
construction of such building is carried out with substantial assistance
of grants, loans or subsidies from any federal, state or local agency or
instrumentality and such assistance is provided pursuant  to  a  program
for  the development of affordable housing, not less than twenty percent
of the units in the multiple dwelling must, either (A) upon the  initial
rental of the units and upon all subsequent rentals of the units after a
vacancy,  be  affordable  to  and occupied or available for occupancy by
individuals or families whose incomes at the time of  initial  occupancy
do  not  exceed  one  hundred  twenty percent of the area median incomes
adjusted for family size and, where the multiple dwelling contains  more
than  twenty-five  units,  do not exceed an average of ninety percent of
the area median incomes adjusted  for  family  size,  or  (B)  upon  the
initial  sale  of  the units, be affordable to and occupied or available
for occupancy by individuals or families whose incomes at  the  time  of
initial  occupancy  do not exceed one hundred twenty-five percent of the
area median incomes adjusted for family size.    IF  CONSTRUCTION  OF  A
MULTIPLE  DWELLING COMMENCED AFTER JUNE FIFTEENTH, TWO THOUSAND FIFTEEN,
(I) NOT LESS THAN FIFTEEN PERCENT OF THE UNITS IN THE MULTIPLE  DWELLING
MUST,  UPON  THE  INITIAL  RENTAL  OF  THE UNITS AND UPON ALL SUBSEQUENT
RENTALS OF THE UNITS AFTER A VACANCY, BE AFFORDABLE TO AND  OCCUPIED  OR
AVAILABLE FOR OCCUPANCY BY INDIVIDUALS OR FAMILIES WHOSE INCOMES, AT THE
TIME OF INITIAL OCCUPANCY, DO NOT EXCEED FORTY PERCENT OF THE AREA MEDI-
AN  INCOME  ADJUSTED FOR FAMILY SIZE, AND (II) NOT LESS THAN TEN PERCENT

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OF THE UNITS IN THE MULTIPLE DWELLING MUST, UPON THE INITIAL  RENTAL  OF
THE  UNITS AND UPON ALL SUBSEQUENT RENTALS OF THE UNITS AFTER A VACANCY,
BE AFFORDABLE TO AND OCCUPIED OR AVAILABLE FOR OCCUPANCY BY  INDIVIDUALS
OR  FAMILIES  WHOSE  INCOMES,  AT  THE TIME OF INITIAL OCCUPANCY, DO NOT
EXCEED SIXTY PERCENT OF THE AREA MEDIAN INCOME ADJUSTED FOR FAMILY SIZE,
AND (III) NOT LESS THAN FIVE PERCENT OF THE UNITS IN THE MULTIPLE DWELL-
ING MUST, UPON THE INITIAL RENTAL OF THE UNITS AND UPON  ALL  SUBSEQUENT
RENTALS  OF  THE UNITS AFTER A VACANCY, BE AFFORDABLE TO AND OCCUPIED OR
AVAILABLE FOR OCCUPANCY BY INDIVIDUALS OR FAMILIES WHOSE INCOMES, AT THE
TIME OF INITIAL OCCUPANCY, DO NOT EXCEED ONE HUNDRED TWENTY  PERCENT  OF
THE AREA MEDIAN INCOME ADJUSTED FOR FAMILY SIZE.
  (d) Unless preempted by federal requirements:
  (i)  all affordable units must have a comparable number of bedrooms as
market rate units and a unit mix proportional to the market rate  units,
or  at least fifty percent of the affordable units must have two or more
bedrooms and no more than fifty percent of the remaining  units  can  be
smaller than one bedroom or in addition to the requirements of paragraph
(c)  of  this subdivision, the floor area of affordable units is no less
than twenty percent of the total floor area of all dwelling units; [and]
  (ii) AFFORDABLE UNITS SHALL SHARE THE SAME COMMON ENTRANCES AND COMMON
AREAS AS MARKET RATE UNITS, AND SHALL NOT  BE  ISOLATED  TO  A  SPECIFIC
FLOOR  OR  AREA  OF A BUILDING OR BUILDINGS. COMMON ENTRANCES SHALL MEAN
ANY AREA REGULARLY USED BY ANY RESIDENT FOR INGRESS AND  EGRESS  FROM  A
MULTIPLE  DWELLING.  IN THE CASE OF A PROJECT CONTAINING MULTIPLE BUILD-
INGS, AFFORDABLE UNITS SHALL BE EQUALLY DISPERSED BETWEEN BUILDINGS; AND
  (III) residents of the community board  where  the  multiple  dwelling
which  receives  the benefits provided in this section is located shall,
upon initial occupancy, have priority for  the  purchase  or  rental  of
fifty percent of the affordable units.
  (e)  Notwithstanding  any provision of law to the contrary, affordable
rental units must remain as rent stabilized units for thirty-five  years
from  completion  of  construction provided that tenants holding a lease
and in occupancy at the expiration  of  the  rent  stabilization  period
shall  have the right to remain as rent stabilized tenants for the dura-
tion of their occupancy.   ALL PROVISIONS OF  RENT  STABILIZATION  SHALL
APPLY  TO TENANTS AFTER THE THIRTY-FIVE YEAR PERIOD, FOR THE DURATION OF
THEIR OCCUPANCY. THIS SHALL INCLUDE, BUT NOT BE LIMITED  TO,  SUCCESSION
RIGHTS  REGARDLESS  OF  IF  THE INDIVIDUAL OR INDIVIDUALS SUCCEEDING THE
TENANT  BEGAN  THEIR  OCCUPANCY  OF  THE  UNIT  AFTER  THE  END  OF  THE
THIRTY-FIVE YEAR PERIOD.
  (f)  All affordable units must be situated onsite. For the purposes of
this section, "onsite" shall mean that affordable units shall  be  situ-
ated  within  the  building  or buildings for which benefits pursuant to
this section are being granted.
  (g) The limitations on eligibility  for  benefits  contained  in  this
subdivision  shall be in addition to those contained in this section and
in any other law or regulation.
  S 4. 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

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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) (I) 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 employed at the
building,  whether employed directly by the applicant or its successors,
or through a property management company [or], a contractor OR A SUBCON-
TRACTOR, shall receive the applicable prevailing wage for  the  duration
of the building's tax exemption.
  (II)  NO  BENEFITS  UNDER  THIS  SECTION  SHALL  BE  CONFERRED FOR ANY
CONSTRUCTION COMMENCED ON OR AFTER JUNE FIFTEENTH, TWO THOUSAND  FIFTEEN
FOR  ANY  TAX  LOTS  NOW EXISTING OR HEREAFTER CREATED, EXCEPT WHERE THE
APPLICANT AGREES THAT ALL CONSTRUCTION EMPLOYEES EMPLOYED AT THE  BUILD-
ING,  WHETHER  EMPLOYED  DIRECTLY BY THE APPLICANT OR ITS SUCCESSORS, OR
THROUGH A PROPERTY MANAGEMENT COMPANY, A CONTRACTOR, OR A SUBCONTRACTOR,
SHALL RECEIVE THE APPLICABLE PREVAILING WAGE FOR  THE  DURATION  OF  THE
BUILDING'S TAX EXEMPTION.
  (III)  NOTWITHSTANDING  ANY GENERAL, SPECIAL OR LOCAL LAW, OR JUDICIAL
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  (C)  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.
  (IV) NO BENEFITS UNDER THIS SECTION SHALL BE CONFERRED FOR ANY PROJECT
COMMENCED ON OR AFTER JUNE FIFTEENTH, TWO THOUSAND FIFTEEN FOR  ANY  TAX
LOTS  NOW  EXISTING  OR  HEREAFTER  CREATED,  EXCEPT WHERE THE APPLICANT
AGREES TO PROVIDE MEANINGFUL PARTICIPATION BY MINORITY  AND  WOMEN-OWNED
BUSINESS  ENTERPRISES  ON CONTRACTS AND SUBCONTRACTS FOR SUCH PROJECT SO
AS TO FACILITATE THE AWARD OF A FAIR SHARE OF SUCH  CONTRACTS  TO  THEM.
THE  LOCAL  HOUSING  AGENCY  SHALL  TAKE  MEASURES AS ARE APPROPRIATE TO
FACILITATE AND ENCOURAGE MEANINGFUL PARTICIPATION BY MINORITY OR  WOMEN-
OWNED BUSINESS ENTERPRISES.
  (c)  THE  LIMITATIONS  CONTAINED  IN PARAGRAPH (B) OF THIS SUBDIVISION
REGARDING BUILDING SERVICE EMPLOYEES SHALL NOT  BE  APPLICABLE  TO:  (I)
PROJECTS  CONTAINING  LESS THAN THIRTY DWELLING UNITS; OR (II) BUILDINGS
IN WHICH ALL OF THE DWELLING UNITS ARE AFFORDABLE HOUSING UNITS AND  NOT
LESS  THAN  FIFTY PERCENT OF SUCH AFFORDABLE HOUSING UNITS, UPON INITIAL
RENTAL AND UPON EACH SUBSEQUENT RENTAL FOLLOWING A  VACANCY  DURING  THE

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PERIOD  OF  TIME  SUCH  BUILDING  IS  SUBJECT  TO THE PROVISIONS OF THIS
SECTION, ARE AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR
FAMILIES WHOSE HOUSEHOLD INCOME DOES NOT EXCEED ONE HUNDRED  TWENTY-FIVE
PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, AT THE TIME
THAT SUCH HOUSEHOLD INITIALLY OCCUPIES SUCH DWELLING UNIT.
  (D)  The  limitations  contained  in paragraph (b) of this subdivision
REGARDING CONSTRUCTION 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] ENSURE that they will remain afford-
able for the entire period during which they receive benefits under this
section.
  [(d)]  (E)  The local housing agency shall prescribe appropriate sanc-
tions 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 alter-
ation  has  begun  in  good  faith on the basis of approved construction
plans.
  [(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 5. Section 421-a of the real property tax law is amended by adding a
new subdivision 16 to read as follows:
  16. NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR ANY LOCAL LAW  TO
THE  CONTRARY,  THE  BENEFITS OF THIS SECTION SHALL NOT BE AVAILABLE FOR
NEW MULTIPLE DWELLINGS  OWNED  AS  A  COOPERATIVE  OR  CONDOMINIUM  THAT
COMMENCE CONSTRUCTION AFTER JUNE FIFTEENTH, TWO THOUSAND FIFTEEN.
  S 6. This act shall take effect immediately.