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

                                  9716

                          I N  A S S E M B L Y

                              April 5, 2016
                               ___________

Introduced by M. of A. LENTOL -- read once and referred to the Committee
  on Real Property Taxation

AN  ACT  to amend the real property tax law, in relation to exemption of
  new 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.  Section  421-a of the real property tax law is amended by
adding a new subdivision 18 to read as follows:
  18. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION:
  (I) "421-A BENEFITS" SHALL MEAN EXEMPTION FROM REAL PROPERTY  TAXATION
PURSUANT TO THIS SUBDIVISION.
  (II)  "CONDOMINIUM  OR  COOPERATIVE  AFFORDABILITY  OPTION" SHALL ONLY
APPLY TO A HOMEOWNERSHIP PROJECT, OF WHICH ONE HUNDRED  PERCENT  OF  THE
UNITS  SHALL: (A) HAVE AN ACTUAL SALES PRICE THAT SHALL BE AFFORDABLE TO
AN INDIVIDUAL OR FAMILY WHOSE INCOME AT THE TIME OF THE  SALE  DOES  NOT
EXCEED ONE HUNDRED SIXTY-FIVE PERCENT OF THE AREA MEDIAN INCOME ADJUSTED
FOR  FAMILY  SIZE  OR (B) BE OFFERED FOR RENT TO AN INDIVIDUAL OR FAMILY
WHOSE INCOME AT THE TIME OF OCCUPANCY DOES NOT EXCEED EIGHTY PERCENT  OF
THE AREA MEDIAN INCOME ADJUSTED FOR FAMILY SIZE SUCH A UNIT SHALL NOT BE
RENTED  ON  A  TEMPORARY, TRANSIENT OR SHORT-TERM BASIS. EVERY LEASE AND
RENEWAL THEREOF FOR SUCH UNIT RENTAL SHALL BE FOR A TERM OF ONE  OR  TWO
YEARS, AT THE OPTION OF THE TENANT.
  (III)  "AGENCY"  SHALL MEAN THE DEPARTMENT OF HOUSING PRESERVATION AND
DEVELOPMENT.
  (IV) "APPLICATION" SHALL MEAN AN APPLICATION FOR 421-A BENEFITS.
  (V) "AREA MEDIAN INCOME" SHALL MEAN THE AREA MEDIAN INCOME ESTABLISHED
BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN  DEVELOPMENT  OR  A
SUCCESSOR AGENCY.
  (VI)  "COMMENCEMENT  DATE"  SHALL  MEAN,  WITH RESPECT TO ANY ELIGIBLE
MULTIPLE DWELLING, THE DATE UPON WHICH EXCAVATION  AND  CONSTRUCTION  OF
INITIAL  FOOTINGS  AND FOUNDATIONS LAWFULLY BEGINS IN GOOD FAITH OR, FOR
AN ELIGIBLE CONVERSION, THE DATE UPON WHICH THE ACTUAL  CONSTRUCTION  OF
THE  CONVERSION,  ALTERATION OR IMPROVEMENT OF THE PRE-EXISTING BUILDING
OR STRUCTURE LAWFULLY BEGINS IN GOOD FAITH.

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

                                                           LBD13891-03-6

A. 9716                             2

  (VII) "COMPLETION DATE" SHALL MEAN  THE  DATE  UPON  WHICH  THE  LOCAL
DEPARTMENT  OF BUILDINGS ISSUES THE FIRST TEMPORARY OR PERMANENT CERTIF-
ICATE OF OCCUPANCY COVERING ALL RESIDENTIAL AREAS OF AN ELIGIBLE  MULTI-
PLE DWELLING.
  (VIII)  "CONSTRUCTION PERIOD" SHALL MEAN, WITH RESPECT TO ANY ELIGIBLE
MULTIPLE DWELLING, A PERIOD: (A) BEGINNING ON THE LATER OF THE COMMENCE-
MENT DATE OF SUCH ELIGIBLE MULTIPLE DWELLING OR THREE YEARS  BEFORE  THE
COMPLETION  DATE  OF  SUCH ELIGIBLE MULTIPLE DWELLING; AND (B) ENDING ON
THE DAY PRECEDING THE COMPLETION DATE OF SUCH ELIGIBLE  MULTIPLE  DWELL-
ING.
  (IX)  "ELIGIBLE  CONVERSION"  SHALL MEAN THE CONVERSION, ALTERATION OR
IMPROVEMENT OF A PRE-EXISTING  BUILDING  OR  STRUCTURE  RESULTING  IN  A
MULTIPLE  DWELLING IN WHICH NO MORE THAN FORTY-NINE PERCENT OF THE FLOOR
AREA CONSISTS OF SUCH PRE-EXISTING BUILDING OR STRUCTURE.
  (X) "ELIGIBLE MULTIPLE DWELLING" SHALL MEAN  A  HOMEOWNERSHIP  PROJECT
CONTAINING  FOUR OR MORE DWELLING UNITS CREATED THROUGH NEW CONSTRUCTION
OR ELIGIBLE CONVERSION FOR WHICH THE COMMENCEMENT DATE IS AFTER DECEMBER
THIRTY-FIRST, TWO THOUSAND FIFTEEN AND ON OR BEFORE JUNE FIFTEENTH,  TWO
THOUSAND  NINETEEN,  AND  FOR  WHICH THE COMPLETION DATE IS ON OR BEFORE
JUNE FIFTEENTH, TWO THOUSAND TWENTY-THREE.
  (XI) "ELIGIBLE SITE" SHALL MEAN EITHER: (A) A TAX  LOT  CONTAINING  AN
ELIGIBLE  MULTIPLE  DWELLING; OR (B) A ZONING LOT CONTAINING TWO OR MORE
ELIGIBLE MULTIPLE DWELLINGS THAT ARE PART OF A SINGLE APPLICATION.
  (XII) "FLOOR AREA" SHALL MEAN THE  HORIZONTAL  AREAS  OF  THE  SEVERAL
FLOORS, OR ANY PORTION THEREOF, OF A DWELLING OR DWELLINGS, AND ACCESSO-
RY  STRUCTURES  ON  A  LOT  MEASURED FROM THE EXTERIOR FACES OF EXTERIOR
WALLS, OR FROM THE CENTER LINE OF PARTY WALLS.
  (XIII) "HOMEOWNERSHIP PROJECT"  SHALL  MEAN  A  MULTIPLE  DWELLING  OR
PORTION THEREOF OPERATED AS CONDOMINIUM OR COOPERATIVE HOUSING, HOWEVER,
IT  SHALL NOT INCLUDE A MULTIPLE DWELLING OR PORTION THEREOF OPERATED AS
COOPERATIVE OR CONDOMINIUM HOUSING LOCATED WITHIN THE BOROUGH OF MANHAT-
TAN.
  (XIV) "MULTIPLE DWELLING" SHALL HAVE THE  MEANING  SET  FORTH  IN  THE
MULTIPLE DWELLING LAW.
  (XV)  "RESTRICTION  PERIOD"  SHALL  MEAN  A  PERIOD  COMMENCING ON THE
COMPLETION DATE  AND  EXPIRING  ON  THE  TWENTIETH  ANNIVERSARY  OF  THE
COMPLETION DATE.
  (XVI) "TWENTY YEAR BENEFIT" SHALL MEAN: (A) FOR THE CONSTRUCTION PERI-
OD,  A  ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER
THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;  (B)  FOR  THE  FIRST  FOURTEEN
YEARS  OF  THE  RESTRICTION PERIOD, A ONE HUNDRED PERCENT EXEMPTION FROM
REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL  IMPROVEMENTS;
AND (C) FOR THE FINAL SIX YEARS OF THE RESTRICTION PERIOD, A TWENTY-FIVE
PERCENT  EXEMPTION  FROM  REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS
FOR LOCAL IMPROVEMENTS;  PROVIDED,  HOWEVER,  THAT  NO  EXEMPTION  UNDER
CLAUSE (B) OR (C) OF THIS SUBPARAGRAPH SHALL BE GIVEN FOR ANY UNIT WHICH
DOES  NOT  QUALIFY  UNDER  THE  CONDOMINIUM OR COOPERATIVE AFFORDABILITY
REQUIREMENT.
  (B) BENEFIT. IN CITIES HAVING A POPULATION OF  ONE  MILLION  OR  MORE,
NOTWITHSTANDING  THE PROVISIONS OF ANY OTHER SUBDIVISION OF THIS SECTION
OR OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, A HOMEOWNERSHIP
PROJECT THAT MEETS ALL OF THE REQUIREMENTS  OF  THIS  SUBDIVISION  SHALL
RECEIVE A TWENTY YEAR BENEFIT.
  (C) TAX PAYMENTS. IN ADDITION TO ANY OTHER AMOUNTS PAYABLE PURSUANT TO
THIS  SUBDIVISION,  THE OWNER OF ANY ELIGIBLE SITE RECEIVING 421-A BENE-

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FITS SHALL PAY, IN EACH TAX YEAR IN WHICH SUCH  421-A  BENEFITS  ARE  IN
EFFECT, REAL PROPERTY TAXES AND ASSESSMENTS AS FOLLOWS:
  (I)  WITH  RESPECT  TO  EACH ELIGIBLE MULTIPLE DWELLING CONSTRUCTED ON
SUCH ELIGIBLE SITE, REAL PROPERTY TAXES ON  THE  ASSESSED  VALUATION  OF
SUCH  LAND  AND  ANY  IMPROVEMENTS THEREON IN EFFECT DURING THE TAX YEAR
PRIOR TO THE COMMENCEMENT DATE OF SUCH ELIGIBLE MULTIPLE DWELLING, WITH-
OUT REGARD TO ANY EXEMPTION FROM OR ABATEMENT OF REAL PROPERTY  TAXATION
IN  EFFECT  DURING  SUCH  TAX  YEAR,  WHICH REAL PROPERTY TAXES SHALL BE
CALCULATED USING THE TAX RATE IN EFFECT AT THE TIME SUCH TAXES ARE  DUE;
AND
  (II) ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
  (D) LIMITATION ON BENEFITS FOR NON-RESIDENTIAL SPACE. IF THE AGGREGATE
FLOOR  AREA OF COMMERCIAL, COMMUNITY FACILITY AND ACCESSORY USE SPACE IN
AN ELIGIBLE SITE, OTHER THAN PARKING WHICH  IS  LOCATED  NOT  MORE  THAN
TWENTY-THREE  FEET  ABOVE  THE CURB LEVEL, EXCEEDS TWELVE PERCENT OF THE
AGGREGATE FLOOR AREA IN SUCH ELIGIBLE SITE, ANY 421-A BENEFITS SHALL  BE
REDUCED BY A PERCENTAGE EQUAL TO SUCH EXCESS.
  (E)  CALCULATION  OF BENEFIT. BASED ON THE CERTIFICATION OF THE AGENCY
CERTIFYING THE APPLICANT'S ELIGIBILITY FOR 421-A BENEFITS, THE ASSESSORS
SHALL CERTIFY TO THE COLLECTING  OFFICER  THE  AMOUNT  OF  TAXES  TO  BE
EXEMPTED.
  (F)  AFFORDABILITY  REQUIREMENTS.  DURING  THE  RESTRICTION  PERIOD, A
HOMEOWNERSHIP PROJECT SHALL COMPLY WITH SUBPARAGRAPH (II)  OF  PARAGRAPH
(A)  OF  THIS SUBDIVISION. FAILURE TO COMPLY WITH THE PROVISIONS OF THIS
PARAGRAPH SHALL RESULT IN REVOCATION OF ANY 421-A BENEFITS FOR THE PERI-
OD OF SUCH NON-COMPLIANCE.
  (G) LOWER INCOME RENTALS.  NOTHING IN THIS SUBDIVISION, OR  ANY  OTHER
PROVISION OF LAW SHALL: (I) PROHIBIT THE OCCUPANCY OF A UNIT BY INDIVID-
UALS  OR  FAMILIES  WHOSE  INCOME  AT  ANY TIME IS LESS THAN THE MAXIMUM
PERCENTAGE OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY  SIZE,  SPECI-
FIED  FOR  SUCH  UNIT PURSUANT TO THIS SUBDIVISION, OR (II) PROHIBIT THE
OWNER OF AN ELIGIBLE SITE FROM REQUIRING, UPON INITIAL  RENTAL  OR  UPON
ANY  RENTAL FOLLOWING A VACANCY, THE OCCUPANCY OF ANY UNIT BY SUCH LOWER
INCOME INDIVIDUALS OR FAMILIES.
  (H) AGENCY REQUIREMENTS.  THE AGENCY SHALL ESTABLISH BY RULE  REQUIRE-
MENTS FOR THE MARKETING AND MONITORING OF ANY HOMEOWNERSHIP PROJECT THAT
IS  GRANTED AN EXEMPTION PURSUANT TO THIS SUBDIVISION. SUCH REQUIREMENTS
SHALL INCLUDE: (I) IF QUALIFYING BY SALES  PRICE,  CERTIFICATION  BY  AN
ARCHITECT  OR  ENGINEER  VERIFYING  NUMBER  OF  BEDROOMS AND A CERTIFIED
PUBLIC ACCOUNTANT VERIFYING AFFORDABLE SALES PRICE AND (II) IF  QUALIFY-
ING BY RENTAL, THE FILING ANNUALLY OF AN AFFIDAVIT BY THE OWNER CERTIFY-
ING  THAT A UNIT IS RENTED AT OR BELOW EIGHTY PERCENT OF THE AREA MEDIAN
INCOME BASED ON HOUSEHOLD SIZE.
  (I) CONCURRENT EXEMPTIONS OR ABATEMENTS. AN ELIGIBLE MULTIPLE DWELLING
RECEIVING 421-A BENEFITS SHALL NOT RECEIVE ANY EXEMPTION FROM OR  ABATE-
MENT OF REAL PROPERTY TAXATION UNDER ANY OTHER LAW.
  (J)   VOLUNTARY   RENUNCIATION  OR  TERMINATION.  NOTWITHSTANDING  THE
PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL  LAW  TO  THE  CONTRARY,  AN
OWNER  SHALL  NOT  BE  ENTITLED TO VOLUNTARILY RENOUNCE OR TERMINATE ANY
421-A BENEFITS UNLESS THE AGENCY AUTHORIZES SUCH RENUNCIATION OR  TERMI-
NATION IN CONNECTION WITH THE COMMENCEMENT OF A NEW TAX EXEMPTION PURSU-
ANT  TO  EITHER  THE PRIVATE HOUSING FINANCE LAW OR SECTION FOUR HUNDRED
TWENTY-C OF THIS TITLE.
  (K) TERMINATION OR REVOCATION. THE  AGENCY  MAY  TERMINATE  OR  REVOKE
421-A  BENEFITS  FOR NONCOMPLIANCE WITH THIS SUBDIVISION. IF 421-A BENE-
FITS ARE TERMINATED OR REVOKED FOR NONCOMPLIANCE WITH THIS  SUBDIVISION,

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A  HOMEOWNERSHIP PROJECT SHALL CONTINUE TO COMPLY WITH SUBPARAGRAPH (II)
OF PARAGRAPH (A) OF THIS SUBDIVISION AND ALL OTHER REQUIREMENTS OF  THIS
SUBDIVISION  FOR  THE  RESTRICTION  PERIOD  AND  ANY  ADDITIONAL  PERIOD
EXPRESSLY PROVIDED IN THIS SUBDIVISION, AS IF THE 421-A BENEFITS HAD NOT
BEEN TERMINATED OR REVOKED.
  (L)  POWERS CUMULATIVE. THE ENFORCEMENT PROVISIONS OF THIS SUBDIVISION
SHALL NOT BE EXCLUSIVE, AND ARE IN ADDITION TO ANY OTHER  RIGHTS,  REME-
DIES,  OR  ENFORCEMENT POWERS SET FORTH IN ANY OTHER LAW OR AVAILABLE AT
LAW OR IN EQUITY.
  (M) APPLICATIONS. (I) THE APPLICATION WITH  RESPECT  TO  ANY  ELIGIBLE
MULTIPLE DWELLING SHALL BE FILED WITH THE AGENCY NOT LATER THAN ONE YEAR
AFTER THE COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELLING.
  (II)  NOTWITHSTANDING  THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
LAW TO THE CONTRARY, THE AGENCY MAY REQUIRE BY RULE THAT APPLICATIONS BE
FILED ELECTRONICALLY.
  (III) THE AGENCY MAY RELY ON CERTIFICATION BY AN ARCHITECT OR ENGINEER
OR CERTIFIED PUBLIC ACCOUNTANT SUBMITTED BY AN APPLICANT  IN  CONNECTION
WITH  THE FILING OF AN APPLICATION. A FALSE CERTIFICATION BY SUCH ARCHI-
TECT OR ENGINEER OR CERTIFIED PUBLIC ACCOUNTANT SHALL BE  DEEMED  TO  BE
PROFESSIONAL  MISCONDUCT  PURSUANT TO SECTION SIXTY-FIVE HUNDRED NINE OF
THE EDUCATION LAW. ANY LICENSEE FOUND GUILTY OF  SUCH  MISCONDUCT  UNDER
THE  PROCEDURES  PRESCRIBED  IN  SECTION  SIXTY-FIVE  HUNDRED TEN OF THE
EDUCATION LAW SHALL BE SUBJECT TO THE PENALTIES  PRESCRIBED  IN  SECTION
SIXTY-FIVE  HUNDRED ELEVEN OF THE EDUCATION LAW, AND SHALL THEREAFTER BE
INELIGIBLE TO SUBMIT A CERTIFICATION PURSUANT TO THIS SUBDIVISION.
  (N) FILING FEE. THE AGENCY MAY REQUIRE A FILING FEE OF THREE  THOUSAND
DOLLARS  PER  DWELLING UNIT IN CONNECTION WITH ANY APPLICATION. HOWEVER,
THE AGENCY MAY PROMULGATE RULES IMPOSING A LESSER FEE FOR ELIGIBLE SITES
CONTAINING ELIGIBLE MULTIPLE DWELLINGS CONSTRUCTED WITH THE  SUBSTANTIAL
ASSISTANCE OF GRANTS, LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE OR
LOCAL  GOVERNMENTAL  AGENCY OR INSTRUMENTALITY PURSUANT TO A PROGRAM FOR
THE DEVELOPMENT OF AFFORDABLE HOUSING.
  (O) RULES.  THE  AGENCY  SHALL  PROMULGATE  RULES  TO  CARRY  OUT  THE
PROVISIONS OF THIS SUBDIVISION.
  (P)  AUTHORITY  OF CITY TO ENACT LOCAL LAW. EXCEPT AS OTHERWISE SPECI-
FIED IN THIS SUBDIVISION, A CITY TO WHICH THIS SUBDIVISION IS APPLICABLE
MAY ENACT A LOCAL LAW TO RESTRICT, LIMIT OR  CONDITION  THE  ELIGIBILITY
FOR  OR  THE  SCOPE  OR AMOUNT OF 421-A BENEFITS IN ANY MANNER, PROVIDED
THAT SUCH LOCAL LAW MAY NOT GRANT 421-A BENEFITS BEYOND  THOSE  PROVIDED
IN  THIS  SUBDIVISION AND PROVIDED FURTHER THAT SUCH LOCAL LAW SHALL NOT
TAKE EFFECT SOONER THAN ONE YEAR AFTER IT IS ENACTED. THE PROVISIONS  OF
SECTIONS  11-245  AND 11-245.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK OR OF ANY OTHER LOCAL LAW OF THE CITY OF  NEW  YORK  THAT  WERE
ENACTED  ON  OR  BEFORE  THE  EFFECTIVE DATE OF THIS PARAGRAPH SHALL NOT
RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY FOR OR THE SCOPE OR  AMOUNT
OF 421-A BENEFITS PURSUANT TO THIS SUBDIVISION.
  S  2. Subparagraphs (v) and (xxxiv) of paragraph (a) of subdivision 16
of section 421-a of the real property tax law, as added by section  63-c
of  part  A  of  chapter  20 of the laws of 2015, are amended to read as
follows:
  (v) "Affordability option D"  shall  only  apply  to  a  homeownership
project[,  of which one hundred percent of the units shall have an aver-
age assessed value not to exceed sixty-five thousand  dollars  upon  the
first  assessment  following the completion date and where each owner of
any such unit shall agree, in writing, to maintain such  unit  as  their

A. 9716                             5

primary  residence  for  no less than five years from the acquisition of
such unit] WHICH COMPLIES WITH SUBDIVISION EIGHTEEN OF THIS SECTION.
  (xxxiv)  "Twenty  year  benefit" shall [mean: (A) for the construction
period, a one hundred percent exemption  from  real  property  taxation,
other  than  assessments for local improvements; (B) for the first four-
teen years of the restriction period, a one  hundred  percent  exemption
from  real  property taxation, other than assessments for local improve-
ments, provided, however, that no  exemption  shall  be  given  for  any
portion of a unit's assessed value that exceeds $65,000; and (C) for the
final  six  years  of  the  restriction  period,  a  twenty-five percent
exemption from real property taxation, other than assessments for  local
improvements,  provided,  however,  that no exemption shall be given for
any portion of a unit's assessed value that exceeds  $65,000]  HAVE  THE
MEANING SET FORTH IN SUBDIVISION EIGHTEEN OF THIS SECTION.
  S  3.  This act shall take effect immediately; provided, however, that
the amendments to paragraph (a) of subdivision 16 of  section  421-a  of
the  real  property  tax  law made by section two of this act shall take
effect on the same date and in the same manner as such subdivision takes
effect pursuant to chapter 20 of the laws of 2015, as amended.