Senate Bill S3713

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

                                  3713

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 17, 2015
                               ___________

Introduced  by Sens. ESPAILLAT, ADDABBO, DIAZ, DILAN, GIANARIS, HASSELL-
  THOMPSON, LANZA, PARKER, PERALTA, PERKINS,  RIVERA,  SAVINO,  SERRANO,
  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),  clause  (A) of subparagraph (ii) and clause (A) of subpara-
graph (iii) as amended by chapter 4 of the laws of 2013, clause  (E)  of
subparagraph (iii) as added by chapter 618 of the laws of 2007, subpara-
graph  (iv)  as  added by chapter 832 of the laws of 1992, clause (A) of
subparagraph (iv) as amended by chapter 432 of the laws of 1998, and the
opening paragraph of clause (A)  of  subparagraph  (iv)  as  amended  by

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08842-01-5
              

S. 3713                             2

section  41  of  part B of chapter 97 of the laws of 2011, 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, 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                       100%
PERIOD (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

S. 3713                             3

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, 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                       100%
PERIOD (maximum three years)
Following completion of [work] THE INITIAL CONSTRUCTION
PERIOD
Year:
 1 through 11                                     100%
12                                                 80
13                                                 60

S. 3713                             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. 3713                             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 Construction PERIOD                100%
(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
  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

S. 3713                             6

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. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
erty tax law, as amended by chapter 995 of the laws of 1981, is  amended
to read as follows:
  (g)  [For]  NOTWITHSTANDING  ANYTHING TO THE CONTRARY CONTAINED IN ANY
OTHER STATE OR LOCAL LAW, FOR purposes  of  this  section,  construction
shall  be deemed "commenced" [when excavation or alteration has begun in
good faith on the basis of approved construction plans]  UPON  THE  DATE
THAT,  PURSUANT TO ANY PERMIT APPROVED BY A DEPARTMENT OF BUILDINGS: (I)
A NEW METAL OR CONCRETE STRUCTURE THAT  SHALL  PERFORM  A  LOAD  BEARING
FUNCTION  IS  INSTALLED AS PART OF A FOUNDATION; (II) AT LEAST ONE FULLY
DRIVEN PILE OR 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

S. 3713                             7

by  chapter  703  of  the laws of 1976 and such section as renumbered by
chapter 110 of the laws of 1977, are amended to read as follows:
  [Application  forms  for  exemption  under this section shall be filed
with the assessors between February first and March fifteenth and, based
on the certification of the local housing agency as herein provided, the
assessors shall certify to the collecting officer the amount of taxes to
be abated.] If there be in a city of one million population  or  more  a
department  of  housing  preservation and development, the term "housing
agency" shall mean only such  department  of  housing  preservation  and
development.  [No  such  application  shall be accepted by the assessors
unless accompanied by a certificate of the local housing agency certify-
ing the applicant's eligibility pursuant to subdivisions two and four of
this section.] No  [such]  certification  of  eligibility  FOR  BENEFITS
PURSUANT  TO  THIS  SECTION  shall be issued by the local housing agency
until such agency determines the initial adjusted  monthly  rent  to  be
paid  by  tenants residing in rental dwelling units contained within the
multiple dwelling and the comparative adjusted monthly rent  that  would
have  to  be paid by such tenants if no tax exemption were applicable as
provided by this section.   The initial adjusted monthly  rent  will  be
certified  by the local housing agency as the first rent for the subject
dwelling units. A copy of such certification with respect to such  units
shall be attached by the applicant to the first effective lease or occu-
pancy  agreement.  The  initial  adjusted monthly rent shall reflect the
full tax exemption benefits as approved by the agency.
  (iv) The adjusted monthly rent per room per month shall be  multiplied
by  the  room  count of each rental dwelling unit to provide the initial
adjusted monthly rent for such  dwelling  unit.  The  agency  may  allow
adjustments  in  the  initial  adjusted  monthly rent for any particular
dwelling units provided that the total of the initial  adjusted  monthly
rents  for all of the rental dwelling units in a multiple dwelling shall
not exceed the total expenses of such multiple dwelling.
  The agency shall determine the estimated comparative adjusted  monthly
rent  that  would have to be paid if no tax exemption were applicable as
provided by this section by adding to the adjusted monthly rent for each
dwelling unit as hereinabove computed an amount equal to (a) the differ-
ence between the projected real property taxes which would be levied  on
the  multiple  dwelling and the land on which it is situated at the time
OF estimated initial occupancy if no tax abatement  were  applicable  as
provided  by this section and the projected real property taxes hereina-
bove utilized in connection with the computation of total expenses;  (b)
divided  by  the room count of the building as per this section; and (c)
multiplied by the applicants approved room count of each  such  dwelling
unit.
  The local housing agency may promulgate rules and regulations to carry
out the provisions of this section, not inconsistent with the provisions
hereof,  [and  may require a reasonable filing fee in an amount provided
by such rules and regulations] INCLUDING, BUT NOT LIMITED TO, RULES  AND
REGULATIONS  RELATING TO THE FILING FEE AUTHORIZED PURSUANT TO PARAGRAPH
B OF SUBDIVISION FOUR OF THIS SECTION.
  S 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

S. 3713                             8

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
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]
SEVENTEEN.
  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:

S. 3713                             9

  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
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

S. 3713                            10

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-o to read as follows:
  S 421-O. 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 FOURTEEN AND ON OR BEFORE DECEMBER THIRTY-FIRST,  TWO  THOUSAND
EIGHTEEN AND COMPLETES CONSTRUCTION NO LATER THAN DECEMBER THIRTY-FIRST,
TWO  THOUSAND TWENTY, AND WHICH IS DESIGNED AND OCCUPIED EXCLUSIVELY FOR
RESIDENTIAL PURPOSES.
  (D) "EXEMPTION COMMENCEMENT DATE" SHALL MEAN THE FIRST TAXABLE  STATUS
DATE  AFTER THE LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR
THE SALE TO THE INITIAL PURCHASER OR, IN THE CASE OF A PRIVATE HOME IN A
CONDOMINIUM FORM OF OWNERSHIP, THE FIRST TAXABLE STATUS DATE  AFTER  THE
LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR THE SALE TO THE
FIRST  INITIAL  PURCHASER OF A CONDOMINIUM DWELLING UNIT IN SUCH PRIVATE
HOME.
  (E) "INITIAL PURCHASER" SHALL MEAN THE  FIRST  PURCHASER  OF  A  NEWLY
CONSTRUCTED  PRIVATE  HOME OR, IN THE CASE OF A PRIVATE HOME IN A CONDO-
MINIUM FORM OF OWNERSHIP, THE FIRST PURCHASER OF EACH DWELLING  UNIT  IN
SUCH NEWLY CONSTRUCTED PRIVATE HOME.

S. 3713                            11

  (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
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.

S. 3713                            12

  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.