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

                                  8133

                            I N  S E N A T E

                              June 14, 2016
                               ___________

Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the real property tax law, in relation to  exemption  of
  new  multiple dwellings from taxation; in relation to establishing the
  affordable housing  tax  exemption  program;  and  to  repeal  certain
  provisions of such law relating thereto

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

  Section 1. Subdivisions 16 and 16-a of section 421-a of the real prop-
erty tax law are REPEALED.
  S 2. Paragraphs (a), (m) and (n) and subparagraph (i) of paragraph (f)
of subdivision 17 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:
  (a) Definitions. For purposes of this subdivision:
  (i) "Affordable housing eighty  percent  units"  shall  mean  dwelling
units that: (A) are situated within the extended affordability property;
(B)  upon  initial  rental  and  upon each subsequent rental following a
vacancy during the extended affordability period,  are  each  affordable
and  restricted  to occupancy by individuals or families whose household
income does not exceed one hundred percent of the  area  median  income,
adjusted  for  family  size,  at  the time that such household initially
occupies such dwelling unit; and (C) upon initial rental and  upon  each
subsequent  rental following a vacancy during the extended affordability
period, are collectively affordable and restricted to occupancy by indi-
viduals or families whose household income does not exceed an average of
eighty percent of the area median income, adjusted for family  size,  at
the time that such household initially occupies such dwelling unit.
  (ii)  "Affordable housing one hundred thirty percent units" shall mean
dwelling units that: (A) are situated within an  extended  affordability
property;  and  (B)  upon initial rental and upon each subsequent rental
following a vacancy during the extended affordability period,  are  each
affordable  and restricted to occupancy by individuals or families whose
household income does not exceed one hundred thirty percent of the  area
median income, adjusted for family size, at the time that such household
initially occupies such dwelling unit.

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15841-04-6

S. 8133                             2

  (iii)  "Affordable housing unit" shall mean, collectively and individ-
ually, affordable housing eighty percent units  and  affordable  housing
one hundred thirty percent units.
  (iv)  "Agency"  shall  mean the department of housing preservation and
development.
  (v) "Application" shall mean  an  application  for  extended  benefits
pursuant to this subdivision.
  (vi) "Building service employee" shall mean any person who is regular-
ly employed at, and performs work in connection with the care or mainte-
nance of, an extended affordability property, including, but not limited
to,  a  watchman,  guard,  doorman,  building cleaner, porter, handyman,
janitor, gardener, groundskeeper, elevator  operator  and  starter,  and
window  cleaner,  but  not including persons regularly scheduled to work
fewer than eight hours per week in the extended affordability property.
  (vii) "Commencement date" shall mean the later of: (A) the  expiration
date; or (B) the restrictive declaration date.
  (viii)  "Expiration  date"  shall  mean  the  date upon which benefits
granted to A FIFTEEN YEAR BENEFIT PROPERTY, a twenty year benefit  prop-
erty or twenty-five year benefit property pursuant to this section prior
to  [the  effective  date  of  the  chapter  of the laws of two thousand
fifteen that added this subdivision]  JUNE  TWENTY-SIXTH,  TWO  THOUSAND
FIFTEEN would expire.
  (ix)  "Extended  affordability period" shall mean, notwithstanding any
earlier termination or revocation of the extended  benefit,  the  period
commencing  upon  the  commencement  date  and ending: (A) fifteen years
thereafter for A FIFTEEN YEAR BENEFIT PROPERTY AND a twenty year benefit
property; and (B) ten years thereafter for a  twenty-five  year  benefit
property.
  (x)  "Extended affordability property" shall mean A FIFTEEN YEAR BENE-
FIT PROPERTY, a twenty year benefit property or a twenty-five year bene-
fit property that complies with the provisions of this subdivision.
  (xi) "Extended affordability requirement" shall mean that, within  any
extended affordability property: (A) not less than twenty percent of the
dwelling  units are affordable housing eighty percent units; and (B) not
less than an additional five percent of the dwelling units are  afforda-
ble housing one hundred thirty percent units.
  (xii)  "Extended  benefit"  shall mean, for any extended affordability
property, a fifty percent exemption from real property  taxation,  other
than  assessments for local improvements, for the extended affordability
period.
  (xiii) "FIFTEEN YEAR BENEFIT PROPERTY" SHALL MEAN A MULTIPLE  DWELLING
THAT  COMMENCED CONSTRUCTION PRIOR TO JULY FIRST, TWO THOUSAND EIGHT AND
THAT WAS GRANTED BENEFITS PURSUANT TO THIS SECTION PRIOR TO  JUNE  TWEN-
TY-SIXTH,  TWO  THOUSAND FIFTEEN DUE TO ITS COMPLIANCE WITH THE REQUIRE-
MENTS OF CLAUSE (C) OF SUBPARAGRAPH (III) OF PARAGRAPH (A)  OF  SUBDIVI-
SION TWO OF THIS SECTION.
  (XIV)  "Fiscal  officer" shall mean the comptroller or other analogous
officer in a city having a population of one million or more.
  [(xiv)] (XV) "Floor area" shall  mean  the  horizontal  areas  of  the
several  floors, or any portion thereof, of a dwelling or dwellings, and
accessory structures on a lot measured from the exterior faces of  exte-
rior walls, or from the center line of party walls.
  [(xv)]  (XVI)  "Multiple dwelling" shall have the meaning set forth in
the multiple dwelling law.
  [(xvi)] (XVII) "Residential  tax  lot"  shall  mean  a  tax  lot  that
contains dwelling units.

S. 8133                             3

  [(xvii)]  (XVIII)  "Restrictive  declaration"  shall  mean  a document
executed by all parties in interest to the extended affordability  prop-
erty  which provides that, during the extended affordability period, the
extended affordability property shall comply with the extended  afforda-
bility requirement.
  [(xviii)]  (XIX)  "Restrictive  declaration  date" shall mean the date
upon which the restrictive declaration is recorded against the  extended
affordability property.
  [(xix)]  (XX)  "Twenty  year  benefit  property" shall mean a multiple
dwelling that commenced construction prior to July first,  two  thousand
eight  and  that  was granted benefits pursuant to this section prior to
[the effective date of the chapter of the laws of two  thousand  fifteen
that added this subdivision] JUNE TWENTY-SIXTH, TWO THOUSAND FIFTEEN due
to  its  compliance  with  the  requirements  of item b of clause (A) of
subparagraph (iv) of paragraph (a) of subdivision two of this section.
  [(xx)] (XXI) "Twenty-five year benefit property" shall mean a multiple
dwelling that commenced construction prior to July first,  two  thousand
eight  and  that  was granted benefits pursuant to this section prior to
[the effective date of the chapter of the laws of two  thousand  fifteen
that added this subdivision] JUNE TWENTY-SIXTH, TWO THOUSAND FIFTEEN due
to  its  compliance  with  the  requirements  of item b of clause (D) of
subparagraph (iii) of paragraph (a) of subdivision two of this section.
  (i) Notwithstanding the provisions of PARAGRAPH (F) OF SUBDIVISION TWO
OF THIS SECTION, any local law for the stabilization  of  rents  or  the
emergency  tenant  protection  act of nineteen seventy-four OR ANY OTHER
LAW RELATING TO THE CONTROL OR STABILIZATION OF RENTS IN THE CITY OF NEW
YORK, all affordable housing units in an extended affordability property
shall be fully subject to control under  such  local  law  or  such  act
during  the extended affordability period, provided that tenants holding
a lease and in occupancy of such affordable housing units in an extended
affordability property at the expiration of the  extended  affordability
period shall have the right to remain as rent stabilized tenants for the
duration  of  their occupancy. Upon any vacancy of an affordable housing
unit after the extended affordability period,  such  affordable  housing
unit  shall  remain fully subject to rent stabilization unless the owner
is entitled to remove such affordable housing unit from rent  stabiliza-
tion upon such vacancy by reason of the monthly rent exceeding any limit
established thereunder.
  (m)  Applications.  (i)  [The application with respect to any extended
affordability property shall  include  a  certification  that:  (A)  the
restrictive  declaration has been recorded against the extended afforda-
bility property; and (B)  the  extended  affordability  property  is  in
compliance with such restrictive declaration and this subdivision.
  (ii)  The application with respect to any extended affordability prop-
erty shall be filed with the agency on  or  before  the  later  of:  (A)
December  thirty-first,  two  thousand  sixteen;  or (B) eighteen months
after the expiration date.] THE OWNER OF AN EXTENDED AFFORDABILITY PROP-
ERTY MAY FILE AN APPLICATION WITH THE AGENCY AT ANY TIME  ON  OR  BEFORE
THE  LATER  OF (A) DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN; OR (B)
EIGHTEEN MONTHS AFTER  THE  EXPIRATION  DATE.    THE  APPLICATION  SHALL
CONSIST  OF A CERTIFICATION THAT: (I) A RESTRICTIVE DECLARATION HAS BEEN
RECORDED, OR SUBMITTED FOR RECORDATION, AGAINST THE EXTENDED AFFORDABIL-
ITY PROPERTY; AND (II) THAT THE FILING FEE HAS BEEN PAID. PROVIDED  THAT
THE  APPLICATION IS FILED AS REQUIRED BY THIS SUBPARAGRAPH, THE EXTENDED
AFFORDABILITY PROPERTY SHALL BE ENTITLED TO RECEIVE THE EXTENDED BENEFIT

S. 8133                             4

AS PROVIDED BY THIS SUBDIVISION UNDER THE TERMS OF THIS  SUBDIVISION  AS
SHALL BE IN EFFECT ON THE DATE OF FILING.
  (II)  THE  OWNER  OF  AN EXTENDED AFFORDABILITY PROPERTY THAT FILED AN
APPLICATION PRIOR TO THE EXPIRATION OF THE EXPIRATION  DATE  SHALL,  NOT
LATER THAN THIRTY DAYS AFTER THE EXPIRATION DATE, FILE WITH THE AGENCY A
CERTIFICATION  THAT THE EXTENDED AFFORDABILITY PROPERTY IS IN COMPLIANCE
WITH SUCH RESTRICTIVE DECLARATION AND THIS SUBDIVISION.
  (iii) Notwithstanding the provisions of any general, special or  local
law to the contrary, the agency may require by rule that applications be
filed electronically.
  (iv)  The agency may rely on certification by an architect or engineer
submitted by an applicant in connection with [the filing of an  applica-
tion]  A  PORTION  OF THE CERTIFICATION REQUIRED BY SUBPARAGRAPH (II) OF
THIS PARAGRAPH. A false certification  by  such  architect  or  engineer
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] AFFORDABLE HOUSING UNIT in  connection  with
any application.
  S  3.  Paragraph  (p)  of  subdivision 17 of section 421-a of the real
property tax law is REPEALED.
  S 4. The real property tax law is amended  by  adding  a  new  section
421-aa to read as follows:
  S  421-AA.  AFFORDABLE HOUSING TAX EXEMPTION PROGRAM.  1. DEFINITIONS.
FOR THE PURPOSES OF THIS SECTION:
  (A) "421-AA BENEFITS" SHALL MEAN EXEMPTION FROM REAL PROPERTY TAXATION
PURSUANT TO THIS SECTION.
  (B) "AFFORDABILITY OPTION A" SHALL  MEAN  THAT,  WITHIN  ANY  ELIGIBLE
SITE: (I) NOT LESS THAN TEN PERCENT OF THE DWELLING UNITS ARE AFFORDABLE
HOUSING  FORTY  PERCENT  UNITS;  (II)  NOT  LESS  THAN AN ADDITIONAL TEN
PERCENT OF THE DWELLING  UNITS  ARE  AFFORDABLE  HOUSING  SIXTY  PERCENT
UNITS;  AND (III) NOT LESS THAN AN ADDITIONAL FIVE PERCENT OF THE DWELL-
ING UNITS ARE AFFORDABLE HOUSING ONE HUNDRED THIRTY PERCENT UNITS.
  (C) "AFFORDABILITY OPTION B" SHALL  MEAN  THAT,  WITHIN  ANY  ELIGIBLE
SITE, (I) NOT LESS THAN TEN PERCENT OF THE DWELLING UNITS ARE AFFORDABLE
HOUSING  SEVENTY  PERCENT  UNITS,  AND  (II) NOT LESS THAN AN ADDITIONAL
TWENTY PERCENT OF THE DWELLING UNITS ARE AFFORDABLE HOUSING ONE  HUNDRED
THIRTY PERCENT UNITS.
  (D) "AFFORDABILITY OPTION C" SHALL MEAN THAT, WITHIN ANY ELIGIBLE SITE
EXCLUDING  THE  GEOGRAPHIC  AREA  SOUTH  OF  NINETY-SIXTH  STREET IN THE
BOROUGH OF MANHATTAN, AND ALL OTHER GEOGRAPHIC AREAS IN THE CITY OF  NEW
YORK EXCLUDED PURSUANT TO LOCAL LAW, (I) NOT LESS THAN THIRTY PERCENT OF
THE  DWELLING  UNITS  ARE  AFFORDABLE HOUSING ONE HUNDRED THIRTY PERCENT
UNITS, AND (II) SUCH ELIGIBLE SITE IS DEVELOPED WITHOUT 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.
  (E) "AFFORDABILITY OPTION D"  SHALL  ONLY  APPLY  TO  A  HOMEOWNERSHIP
PROJECT,  OF  WHICH  FIFTY  PERCENT  OF  THE UNITS SHALL HAVE AN AVERAGE
ASSESSED VALUE NOT TO EXCEED  SEVENTY-FIVE  THOUSAND  DOLLARS  UPON  THE
FIRST  ASSESSMENT  FOLLOWING THE COMPLETION DATE AND WHERE EACH OWNER OF

S. 8133                             5

ANY SUCH UNIT SHALL AGREE, IN WRITING, TO MAINTAIN SUCH  UNIT  AS  THEIR
PRIMARY  RESIDENCE  FOR  NO LESS THAN FIVE YEARS FROM THE ACQUISITION OF
SUCH UNIT.
  (F) "AFFORDABILITY PERCENTAGE" SHALL MEAN A FRACTION, THE NUMERATOR OF
WHICH  IS THE NUMBER OF AFFORDABLE HOUSING UNITS IN AN ELIGIBLE SITE AND
THE DENOMINATOR OF WHICH IS THE TOTAL NUMBER OF DWELLING UNITS  IN  SUCH
ELIGIBLE SITE.
  (G) "AFFORDABLE HOUSING FORTY PERCENT UNIT" SHALL MEAN A DWELLING UNIT
THAT: (I) IS SITUATED WITHIN THE ELIGIBLE SITE FOR WHICH 421-AA BENEFITS
ARE  GRANTED;  AND  (II)  UPON  INITIAL  RENTAL AND UPON EACH SUBSEQUENT
RENTAL FOLLOWING A VACANCY DURING THE RESTRICTION PERIOD, IS  AFFORDABLE
TO  AND  RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR FAMILIES WHOSE HOUSE-
HOLD INCOME DOES NOT EXCEED FORTY PERCENT OF  THE  AREA  MEDIAN  INCOME,
ADJUSTED  FOR  FAMILY  SIZE,  AT  THE TIME THAT SUCH HOUSEHOLD INITIALLY
OCCUPIES SUCH DWELLING UNIT.
  (H) "AFFORDABLE HOUSING SIXTY PERCENT UNIT" SHALL MEAN A DWELLING UNIT
THAT: (I) IS SITUATED WITHIN THE ELIGIBLE SITE FOR WHICH 421-AA BENEFITS
ARE GRANTED; AND (II) UPON  INITIAL  RENTAL  AND  UPON  EACH  SUBSEQUENT
RENTAL  FOLLOWING A VACANCY DURING THE RESTRICTION PERIOD, IS AFFORDABLE
TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR FAMILIES  WHOSE  HOUSE-
HOLD  INCOME  DOES  NOT  EXCEED SIXTY PERCENT OF THE AREA MEDIAN INCOME,
ADJUSTED FOR FAMILY SIZE, AT THE  TIME  THAT  SUCH  HOUSEHOLD  INITIALLY
OCCUPIES SUCH DWELLING UNIT.
  (I)  "AFFORDABLE  HOUSING  SEVENTY PERCENT UNIT" SHALL MEAN A DWELLING
UNIT THAT: (I) IS SITUATED WITHIN THE ELIGIBLE  SITE  FOR  WHICH  421-AA
BENEFITS  ARE GRANTED; AND (II) UPON INITIAL RENTAL AND UPON EACH SUBSE-
QUENT RENTAL FOLLOWING A  VACANCY  DURING  THE  RESTRICTION  PERIOD,  IS
AFFORDABLE  TO  AND  RESTRICTED  TO OCCUPANCY BY INDIVIDUALS OR FAMILIES
WHOSE HOUSEHOLD INCOME DOES NOT EXCEED SEVENTY PERCENT OF THE AREA MEDI-
AN INCOME, ADJUSTED FOR FAMILY SIZE, AT THE  TIME  THAT  SUCH  HOUSEHOLD
INITIALLY OCCUPIES SUCH DWELLING UNIT.
  (J)  "AFFORDABLE HOUSING ONE HUNDRED THIRTY PERCENT UNIT" SHALL MEAN A
DWELLING UNIT THAT: (I) IS SITUATED WITHIN THE ELIGIBLE SITE  FOR  WHICH
421-AA  BENEFITS ARE GRANTED; AND (II) UPON INITIAL RENTAL AND UPON EACH
SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE RESTRICTION PERIOD,  IS
AFFORDABLE  TO  AND  RESTRICTED  TO OCCUPANCY BY INDIVIDUALS OR FAMILIES
WHOSE HOUSEHOLD INCOME DOES NOT EXCEED ONE HUNDRED THIRTY PERCENT OF THE
AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE,  AT  THE  TIME  THAT  SUCH
HOUSEHOLD INITIALLY OCCUPIES SUCH DWELLING UNIT.
  (K) "AFFORDABLE HOUSING UNIT" SHALL MEAN, COLLECTIVELY AND INDIVIDUAL-
LY,  AFFORDABLE  HOUSING  FORTY  PERCENT UNITS, AFFORDABLE HOUSING SIXTY
PERCENT UNITS, AFFORDABLE HOUSING SEVENTY PERCENT UNITS, AND  AFFORDABLE
HOUSING ONE HUNDRED THIRTY PERCENT UNITS.
  (L)  "AGENCY"  SHALL  MEAN  THE DEPARTMENT OF HOUSING PRESERVATION AND
DEVELOPMENT.
  (M) "APPLICATION" SHALL MEAN AN APPLICATION FOR 421-AA BENEFITS.
  (N) "BUILDING SERVICE EMPLOYEE" SHALL MEAN ANY PERSON WHO IS REGULARLY
EMPLOYED AT, AND PERFORMS WORK IN CONNECTION WITH THE  CARE  OR  MAINTE-
NANCE  OF,  AN ELIGIBLE SITE, INCLUDING, BUT NOT LIMITED TO, A WATCHMAN,
GUARD, DOORMAN, BUILDING CLEANER, PORTER, HANDYMAN,  JANITOR,  GARDENER,
GROUNDSKEEPER,  ELEVATOR  OPERATOR  AND STARTER, AND WINDOW CLEANER, BUT
NOT INCLUDING PERSONS REGULARLY SCHEDULED TO WORK FEWER THAN EIGHT HOURS
PER WEEK AT THE ELIGIBLE SITE.
  (O) "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

S. 8133                             6

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.
  (P) "COMPLETION DATE" SHALL MEAN THE DATE UPON WHICH THE LOCAL DEPART-
MENT OF BUILDINGS ISSUES THE FIRST TEMPORARY OR PERMANENT CERTIFICATE OF
OCCUPANCY  COVERING ALL RESIDENTIAL AREAS OF AN ELIGIBLE MULTIPLE DWELL-
ING.
  (Q) "CONSTRUCTION PERIOD" SHALL MEAN, WITH  RESPECT  TO  ANY  ELIGIBLE
MULTIPLE DWELLING, A PERIOD: (I) 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 (II)  ENDING  ON
THE  DAY  PRECEDING THE COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELL-
ING.
  (R)  "CONSTRUCTION  WORKER"   SHALL   MEAN   ANY   PERSON   PERFORMING
CONSTRUCTION WORK ON AN ELIGIBLE SITE.
  (S) "CONSTRUCTION WORK" SHALL MEAN WORK CARRIED OUT IN CONNECTION WITH
THE INITIAL CONSTRUCTION OF AN ELIGIBLE MULTIPLE DWELLING, PROVIDED THAT
ANY  WORK  PERFORMED  PRIOR TO THE COMMENCEMENT OF CONSTRUCTION OR AFTER
COMPLETION OF CONSTRUCTION SHALL NOT BE CONSIDERED CONSTRUCTION WORK.
  (T) "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.
  (U)  "ELIGIBLE  MULTIPLE  DWELLING"  SHALL  MEAN  A  MULTIPLE DWELLING
CONTAINING SIX 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 TWENTY-ONE, AND FOR WHICH THE COMPLETION DATE IS ON  OR  BEFORE
DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE.
  (V)  "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.
  (W)  "FISCAL  OFFICER"  SHALL  MEAN THE COMPTROLLER OR OTHER ANALOGOUS
OFFICER IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE.
  (X) "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.
  (Y) "FOUR PERCENT TAX CREDITS" SHALL MEAN FEDERAL LOW  INCOME  HOUSING
TAX  CREDITS COMPUTED IN ACCORDANCE WITH CLAUSE (II) OF SUBPARAGRAPH (B)
OF PARAGRAPH (1) OF SUBSECTION (B) OF SECTION FORTY-TWO OF THE  INTERNAL
REVENUE CODE OF NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED.
  (Z)  "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  COOPER-
ATIVE  OR  CONDOMINIUM  HOUSING LOCATED WITHIN THE BOROUGH OF MANHATTAN,
AND SHALL NOT INCLUDE A MULTIPLE DWELLING THAT CONTAINS MORE THAN  THIR-
TY-FIVE UNITS.
  (AA)  "MARKET UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE MULTIPLE
DWELLING OTHER THAN AN AFFORDABLE HOUSING UNIT.
  (BB) "MULTIPLE DWELLING" SHALL HAVE  THE  MEANING  SET  FORTH  IN  THE
MULTIPLE DWELLING LAW.
  (CC)  "NON-RESIDENTIAL  TAX  LOT"  SHALL  MEAN A TAX LOT THAT DOES NOT
CONTAIN ANY DWELLING UNITS.
  (DD) "RENT STABILIZATION" SHALL MEAN, COLLECTIVELY, THE RENT  STABILI-
ZATION  LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE,

S. 8133                             7

AND THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, ALL AS
IN EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF  THE  LAWS  OF  TWO
THOUSAND  SIXTEEN  THAT ADDED THIS SUBDIVISION OR AS AMENDED THEREAFTER,
TOGETHER  WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING SUBSTAN-
TIALLY THE SAME SUBJECT MATTER.
  (EE) "RENTAL PROJECT" SHALL MEAN AN ELIGIBLE SITE IN WHICH ALL  DWELL-
ING UNITS INCLUDED IN ANY APPLICATION ARE OPERATED AS RENTAL HOUSING.
  (FF) "RESIDENTIAL TAX LOT" SHALL MEAN A TAX LOT THAT CONTAINS DWELLING
UNITS.
  (GG)  "RESTRICTION  PERIOD" SHALL MEAN, FOR A RENTAL PROJECT, A PERIOD
COMMENCING ON THE COMPLETION DATE AND EXPIRING ON THE THIRTY-FIFTH ANNI-
VERSARY OF THE COMPLETION DATE, NOTWITHSTANDING ANY EARLIER  TERMINATION
OR  REVOCATION  OF  421-AA  BENEFITS  AND  FOR A HOMEOWNERSHIP, A PERIOD
COMMENCING ON THE COMPLETION DATE AND EXPIRING ON THE TWENTIETH ANNIVER-
SARY OF THE COMPLETION DATE, NOTWITHSTANDING ANY EARLIER TERMINATION  OR
REVOCATION OF 421-AA BENEFITS.
  (HH)  "TAX  EXEMPT BOND PROCEEDS" SHALL MEAN THE PROCEEDS OF AN EXEMPT
FACILITY BOND, AS DEFINED  IN  PARAGRAPH  SEVEN  OF  SUBSECTION  (A)  OF
SECTION  ONE  HUNDRED FORTY-TWO OF THE INTERNAL REVENUE CODE OF NINETEEN
HUNDRED EIGHTY-SIX, AS AMENDED, THE INTEREST UPON WHICH IS  EXEMPT  FROM
TAXATION UNDER SECTION ONE HUNDRED THREE OF THE INTERNAL REVENUE CODE OF
NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED.
  (II)  "THIRTY-FIVE  YEAR BENEFIT" SHALL MEAN: (I) FOR THE CONSTRUCTION
PERIOD, A ONE HUNDRED PERCENT EXEMPTION  FROM  REAL  PROPERTY  TAXATION,
OTHER  THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS; (II) FOR THE FIRST TWEN-
TY-FIVE YEARS OF THE RESTRICTION PERIOD, A ONE HUNDRED PERCENT EXEMPTION
FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL  IMPROVE-
MENTS;  AND  (III) FOR THE FINAL TEN YEARS OF THE RESTRICTION PERIOD, AN
EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL
IMPROVEMENTS, EQUAL TO THE AFFORDABILITY PERCENTAGE.
  (JJ)  "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,
PROVIDED, HOWEVER, THAT NO EXEMPTION SHALL BE GIVEN FOR ANY PORTION OF A
UNIT'S ASSESSED VALUE THAT EXCEEDS SIXTY-FIVE THOUSAND DOLLARS; 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 SIXTY-FIVE THOUSAND
DOLLARS.
  2. 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,  NEW  ELIGIBLE
SITES,  EXCEPT  HOTELS,  THAT COMPLY WITH THE PROVISIONS OF THIS SECTION
SHALL BE EXEMPT FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS  FOR
LOCAL IMPROVEMENTS, IN THE AMOUNTS AND FOR THE PERIODS SPECIFIED IN THIS
SUBDIVISION. A RENTAL PROJECT THAT MEETS ALL OF THE REQUIREMENTS OF THIS
SECTION  SHALL  RECEIVE  A  THIRTY-FIVE YEAR BENEFIT AND A HOMEOWNERSHIP
PROJECT THAT MEETS ALL OF THE REQUIREMENTS  OF  THIS  SUBDIVISION  SHALL
RECEIVE A TWENTY YEAR BENEFIT.
  3.  TAX PAYMENTS. IN ADDITION TO ANY OTHER AMOUNTS PAYABLE PURSUANT TO
THIS SECTION, THE OWNER OF ANY ELIGIBLE SITE RECEIVING  421-AA  BENEFITS
SHALL PAY, IN EACH TAX YEAR IN WHICH SUCH 421-AA BENEFITS ARE IN EFFECT,
REAL PROPERTY TAXES AND ASSESSMENTS AS FOLLOWS:

S. 8133                             8

  (A)  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
  (B) ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
  4. 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-AA BENEFITS SHALL BE
REDUCED BY A PERCENTAGE EQUAL  TO  SUCH  EXCESS.  IF  AN  ELIGIBLE  SITE
CONTAINS  MULTIPLE  TAX  LOTS,  THE TAX ARISING OUT OF SUCH REDUCTION IN
421-AA BENEFITS SHALL FIRST BE APPORTIONED PRO RATA AMONG ANY  NON-RESI-
DENTIAL  TAX  LOTS.  AFTER  ANY  SUCH NON-RESIDENTIAL TAX LOTS ARE FULLY
TAXABLE, THE REMAINDER OF THE TAX ARISING OUT OF SUCH REDUCTION IN  421-
AA  BENEFITS,  IF ANY, SHALL BE APPORTIONED PRO RATA AMONG THE REMAINING
RESIDENTIAL TAX LOTS.
  5. CALCULATION OF BENEFIT. BASED ON THE CERTIFICATION  OF  THE  AGENCY
CERTIFYING  THE  APPLICANT'S ELIGIBILITY FOR 421-AA BENEFITS, THE ASSES-
SORS SHALL CERTIFY TO THE COLLECTING OFFICER THE AMOUNT OF TAXES  TO  BE
EXEMPTED.
  6. AFFORDABILITY REQUIREMENTS. DURING THE RESTRICTION PERIOD, A RENTAL
PROJECT  SHALL  COMPLY WITH EITHER AFFORDABILITY OPTION A, AFFORDABILITY
OPTION B, OR AFFORDABILITY OPTION C OR FOR PURPOSES OF  A  HOMEOWNERSHIP
PROJECT,  SUCH  PROJECT  SHALL  COMPLY WITH AFFORDABILITY OPTION D. SUCH
ELECTION SHALL BE MADE IN THE APPLICATION AND SHALL  NOT  THEREAFTER  BE
CHANGED.  THE  RENTAL  PROJECT  SHALL ALSO COMPLY WITH ALL PROVISIONS OF
THIS SUBDIVISION DURING THE RESTRICTION PERIOD AND WITH PARAGRAPH (C) OF
THIS SUBDIVISION BOTH DURING AND AFTER THE  RESTRICTION  PERIOD  TO  THE
EXTENT PROVIDED IN SUCH PARAGRAPH.
  (A)  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; PROVIDED, HOWEVER, THAT UNITS OWNED AND
OPERATED AS CONDOMINIUM OR COOPERATIVE HOUSING MAY BE  PROVIDED  WITH  A
SEPARATE ENTRANCE AND WITH SEPARATE COMMON AREAS. COMMON ENTRANCES SHALL
MEAN ANY AREA REGULARLY USED BY ANY RESIDENT FOR INGRESS AND EGRESS FROM
A MULTIPLE DWELLING; AND
  (B)  UNLESS PREEMPTED BY THE REQUIREMENTS OF A FEDERAL, STATE OR LOCAL
HOUSING PROGRAM, EITHER: (I) THE AFFORDABLE HOUSING UNITS  IN  A  RENTAL
PROJECT  SHALL HAVE A UNIT MIX PROPORTIONAL TO THE MARKET UNITS; OR (II)
AT LEAST FIFTY PERCENT OF THE AFFORDABLE HOUSING UNITS  IN  AN  ELIGIBLE
SITE  SHALL  HAVE  TWO  OR  MORE  BEDROOMS  AND NO MORE THAN TWENTY-FIVE
PERCENT OF THE  AFFORDABLE  HOUSING  UNITS  SHALL  HAVE  LESS  THAN  ONE
BEDROOM.
  (C) NOTWITHSTANDING ANY PROVISION OF RENT STABILIZATION TO THE CONTRA-
RY, ALL AFFORDABLE HOUSING UNITS SHALL BE FULLY SUBJECT TO RENT STABILI-
ZATION  DURING  THE  RESTRICTION PERIOD, PROVIDED THAT TENANTS HOLDING A
LEASE AND IN OCCUPANCY OF SUCH AFFORDABLE HOUSING UNITS AT  THE  EXPIRA-
TION  OF  THE  RESTRICTION PERIOD SHALL HAVE THE RIGHT TO REMAIN AS RENT
STABILIZED TENANTS FOR THE DURATION OF THEIR OCCUPANCY.
  (D) ALL RENT STABILIZATION REGISTRATIONS REQUIRED TO BE FILED PURSUANT
TO PARAGRAPH (C) OF THIS SUBDIVISION SHALL CONTAIN  A  DESIGNATION  THAT

S. 8133                             9

SPECIFICALLY  IDENTIFIES  AFFORDABLE  HOUSING  UNITS CREATED PURSUANT TO
THIS SUBDIVISION AS "421-AA AFFORDABLE HOUSING UNITS" AND SHALL  CONTAIN
AN  EXPLANATION  OF  THE  REQUIREMENTS THAT APPLY TO ALL SUCH AFFORDABLE
HOUSING UNITS.
  (E)  FAILURE  TO  COMPLY  WITH THE PROVISIONS OF THIS SUBDIVISION THAT
REQUIRE THE CREATION, MAINTENANCE,  RENT  STABILIZATION  COMPLIANCE  AND
OCCUPANCY  OF AFFORDABLE HOUSING UNITS SHALL RESULT IN REVOCATION OF ANY
421-AA BENEFITS FOR THE PERIOD OF SUCH NON-COMPLIANCE OR FOR PURPOSES OF
A HOMEOWNERSHIP PROJECT THE FAILURE TO COMPLY WITH AFFORDABILITY  OPTION
D  SHALL  RESULT  IN REVOCATION OF ANY 421-AA BENEFITS FOR THE PERIOD OF
SUCH NON-COMPLIANCE.
  (F) NOTHING IN THIS SECTION SHALL: (I) PROHIBIT THE  OCCUPANCY  OF  AN
AFFORDABLE  HOUSING  UNIT BY INDIVIDUALS OR FAMILIES WHOSE INCOME AT ANY
TIME IS LESS THAN THE MAXIMUM PERCENTAGE  OF  THE  AREA  MEDIAN  INCOME,
ADJUSTED  FOR  FAMILY  SIZE,  SPECIFIED FOR SUCH AFFORDABLE HOUSING 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 AFFORDABLE  HOUSING  UNIT  BY  SUCH  LOWER
INCOME INDIVIDUALS OR FAMILIES.
  (G)  FOLLOWING  ISSUANCE  OF  A TEMPORARY CERTIFICATE OF OCCUPANCY AND
UPON EACH VACANCY THEREAFTER, AN AFFORDABLE HOUSING UNIT SHALL  PROMPTLY
BE  OFFERED  FOR RENTAL BY INDIVIDUALS OR FAMILIES WHOSE INCOME DOES NOT
EXCEED THE MAXIMUM PERCENTAGE OF THE AREA MEDIAN  INCOME,  ADJUSTED  FOR
FAMILY SIZE, SPECIFIED FOR SUCH AFFORDABLE HOUSING UNIT PURSUANT TO THIS
SUBDIVISION  AND  WHO  INTEND  TO OCCUPY SUCH AFFORDABLE HOUSING UNIT AS
THEIR PRIMARY RESIDENCE.  AN AFFORDABLE HOUSING UNIT SHALL NOT  BE:  (I)
RENTED  TO  A CORPORATION, PARTNERSHIP OR OTHER ENTITY; OR (II) HELD OFF
THE MARKET FOR A PERIOD LONGER THAN IS REASONABLY NECESSARY  TO  PERFORM
REPAIRS  NEEDED TO MAKE SUCH AFFORDABLE HOUSING UNIT AVAILABLE FOR OCCU-
PANCY.
  (H) AN AFFORDABLE HOUSING UNIT SHALL NOT BE  RENTED  ON  A  TEMPORARY,
TRANSIENT  OR  SHORT-TERM  BASIS. EVERY LEASE AND RENEWAL THEREOF FOR AN
AFFORDABLE HOUSING UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT  THE
OPTION OF THE TENANT.
  (I)  AN  AFFORDABLE HOUSING UNIT SHALL NOT BE CONVERTED TO COOPERATIVE
OR CONDOMINIUM OWNERSHIP.
  (J) THE AGENCY MAY ESTABLISH BY RULE SUCH REQUIREMENTS AS  THE  AGENCY
DEEMS  NECESSARY  OR  APPROPRIATE  FOR:  (I) THE MARKETING OF AFFORDABLE
HOUSING UNITS, BOTH UPON INITIAL OCCUPANCY AND UPON  ANY  VACANCY;  (II)
MONITORING  COMPLIANCE  WITH THE PROVISIONS OF THIS PARAGRAPH; AND (III)
THE MARKETING AND MONITORING OF ANY HOMEOWNERSHIP PROJECT THAT IS GRANT-
ED AN EXEMPTION PURSUANT TO  THIS  SUBDIVISION.  SUCH  REQUIREMENTS  MAY
INCLUDE, BUT NEED NOT BE LIMITED TO, RETAINING A MONITOR APPROVED BY THE
AGENCY AND PAID FOR BY THE OWNER.
  (K)  NOTWITHSTANDING  ANY  PROVISION  OF THIS SECTION TO THE CONTRARY,
UPON INITIAL OCCUPANCY AND EACH  SUBSEQUENT  RE-RENTAL,  A  MARKET  UNIT
SHALL  BE SUBJECT TO RENT STABILIZATION UNLESS, IN THE ABSENCE OF 421-AA
BENEFITS, THE OWNER WOULD BE ENTITLED TO REMOVE SUCH  MARKET  UNIT  FROM
RENT  STABILIZATION UPON VACANCY BY REASON OF THE MONTHLY RENT EXCEEDING
ANY LIMIT ESTABLISHED THEREUNDER.
  7. BUILDING SERVICE EMPLOYEES. (A) FOR THE PURPOSES OF  THIS  SUBDIVI-
SION,  "APPLICANT"  SHALL  MEAN  AN  APPLICANT  FOR 421-AA BENEFITS, ANY
SUCCESSOR TO SUCH APPLICANT, OR ANY EMPLOYER OF BUILDING SERVICE EMPLOY-
EES FOR SUCH APPLICANT,  INCLUDING,  BUT  NOT  LIMITED  TO,  A  PROPERTY
MANAGEMENT COMPANY OR CONTRACTOR.

S. 8133                            10

  (B)  ALL  BUILDING  SERVICE EMPLOYEES EMPLOYED BY THE APPLICANT AT THE
ELIGIBLE SITE SHALL RECEIVE  THE  APPLICABLE  PREVAILING  WAGE  FOR  THE
ENTIRE RESTRICTION PERIOD.
  (C)  THE FISCAL OFFICER SHALL HAVE THE POWER TO ENFORCE THE PROVISIONS
OF THIS SUBDIVISION. IN ENFORCING SUCH PROVISIONS,  THE  FISCAL  OFFICER
SHALL HAVE THE POWER:
  (I)  TO  INVESTIGATE OR CAUSE AN INVESTIGATION TO BE MADE TO DETERMINE
THE PREVAILING WAGES FOR BUILDING  SERVICE  EMPLOYEES;  IN  MAKING  SUCH
INVESTIGATION,  THE  FISCAL  OFFICER MAY UTILIZE WAGE AND FRINGE BENEFIT
DATA FROM VARIOUS SOURCES, INCLUDING,  BUT  NOT  LIMITED  TO,  DATA  AND
DETERMINATIONS OF FEDERAL, STATE OR OTHER GOVERNMENTAL AGENCIES;
  (II)  TO  INSTITUTE AND CONDUCT INSPECTIONS AT THE SITE OF THE WORK OR
ELSEWHERE;
  (III) TO EXAMINE THE BOOKS, DOCUMENTS AND RECORDS  PERTAINING  TO  THE
WAGES  PAID  TO,  AND  THE  HOURS OF WORK PERFORMED BY, BUILDING SERVICE
EMPLOYEES;
  (IV) TO HOLD HEARINGS AND, IN CONNECTION THEREWITH, TO  ISSUE  SUBPOE-
NAS,  ADMINISTER  OATHS  AND  EXAMINE  WITNESSES;  THE  ENFORCEMENT OF A
SUBPOENA ISSUED UNDER THIS PARAGRAPH SHALL BE  REGULATED  BY  THE  CIVIL
PRACTICE LAW AND RULES;
  (V) TO MAKE A CLASSIFICATION BY CRAFT, TRADE OR OTHER GENERALLY RECOG-
NIZED  OCCUPATIONAL  CATEGORY  OF  THE BUILDING SERVICE EMPLOYEES AND TO
DETERMINE WHETHER SUCH WORK HAS BEEN PERFORMED BY THE  BUILDING  SERVICE
EMPLOYEES IN SUCH CLASSIFICATION;
  (VI) TO REQUIRE THE APPLICANT TO FILE WITH THE FISCAL OFFICER A RECORD
OF  THE  WAGES  ACTUALLY  PAID BY SUCH APPLICANT TO THE BUILDING SERVICE
EMPLOYEES AND OF THEIR HOURS OF WORK;
  (VII) TO DELEGATE ANY OF THE FOREGOING POWERS TO HIS OR HER DEPUTY  OR
OTHER AUTHORIZED REPRESENTATIVE; AND
  (VIII)  TO  PROMULGATE RULES AS HE OR SHE SHALL CONSIDER NECESSARY FOR
THE  PROPER  EXECUTION  OF  THE  DUTIES,  RESPONSIBILITIES  AND   POWERS
CONFERRED UPON HIM OR HER BY THE PROVISIONS OF THIS PARAGRAPH.
  (IX)  IF  THE  FISCAL  OFFICER  FINDS THAT THE APPLICANT HAS FAILED TO
COMPLY WITH THE PROVISIONS OF THIS PARAGRAPH, HE OR  SHE  SHALL  PRESENT
EVIDENCE OF SUCH NONCOMPLIANCE TO THE AGENCY.
  (D) PARAGRAPH (B) OF THIS SUBDIVISION SHALL NOT BE APPLICABLE TO:
  (I) AN ELIGIBLE MULTIPLE DWELLING CONTAINING LESS THAN THIRTY DWELLING
UNITS; OR
  (II)  AN ELIGIBLE MULTIPLE DWELLING 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 RESTRICTION PERIOD, ARE AFFORDABLE
TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR FAMILIES  WHOSE  HOUSE-
HOLD  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.
  8. CONSTRUCTION WORKERS.  (A) ALL CONSTRUCTION WORKERS SHALL BE  PAID,
AN  HOURLY  COMPENSATION  PACKAGE  THAT  IS  NO LESS THAN THE SUM OF THE
AFFORDABLE HOUSING WAGE RATE AND THE HEALTH BENEFITS SUPPLEMENT RATE FOR
EACH WORK HOUR WORKED. AS OF THE EFFECTIVE DATE  OF  THIS  CHAPTER,  THE
AFFORDABLE  HOUSING  WAGE RATE SHALL BE FIFTEEN DOLLARS PER HOUR AND THE
HEALTH BENEFITS SUPPLEMENT RATE SHALL BE ONE DOLLAR AND FIFTY CENTS  PER
HOUR.  THE  PORTION OF THE HOURLY COMPENSATION PACKAGE CONSISTING OF THE
HEALTH BENEFITS SUPPLEMENT RATE MAY BE PROVIDED  IN  THE  FORM  OF  CASH
WAGES,  HEALTH BENEFITS OR ANY COMBINATION OF THE TWO.  THE VALUE OF ANY
HEALTH BENEFITS RECEIVED SHALL BE DETERMINED BASED ON THE PRORATED HOUR-

S. 8133                            11

LY COST TO THE EMPLOYER OF THE HEALTH BENEFITS RECEIVED BY THE EMPLOYEE.
EFFECTIVE JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE AFFORDABLE  HOUSING
WAGE  RATE SHALL BE INCREASED TO SIXTEEN DOLLARS AND FIFTY CENTS. EFFEC-
TIVE  JANUARY  FIRST, TWO THOUSAND EIGHTEEN, THE AFFORDABLE HOUSING WAGE
RATE SHALL BE INCREASED TO EIGHTEEN DOLLARS.   EFFECTIVE JANUARY  FIRST,
TWO  THOUSAND  NINETEEN,  THE  AFFORDABLE  HOUSING  WAGE  RATE  SHALL BE
INCREASED TO NINETEEN DOLLARS AND FIFTY CENTS. EFFECTIVE JANUARY  FIRST,
TWO THOUSAND TWENTY, THE AFFORDABLE HOUSING WAGE RATE SHALL BE INCREASED
TO TWENTY-ONE DOLLARS.
  (B)  FOR  ELIGIBLE  SITES LOCATED IN THE BOROUGH OF MANHATTAN SOUTH OF
NINETY-SIXTH STREET WHICH  CONTAIN  MORE  THAN  THREE  HUNDRED  DWELLING
UNITS,  CONSTRUCTION  WORKERS  IN THE AGGREGATE SHALL BE PAID AN AVERAGE
HOURLY WAGE, INCLUSIVE OF FRINGE BENEFITS, OF NO  LESS  THAN  FIFTY-FIVE
DOLLARS  PER HOUR.  THE PRECEDING REQUIREMENT SHALL NOT BE APPLICABLE TO
AN ELIGIBLE MULTIPLE DWELLING IN WHICH AT LEAST  FIFTY  PERCENT  OF  THE
DWELLING  UNITS ARE, UPON INITIAL RENTAL AND UPON EACH SUBSEQUENT RENTAL
FOLLOWING A VACANCY DURING THE RESTRICTION  PERIOD,  AFFORDABLE  TO  AND
RESTRICTED  TO  OCCUPANCY  BY  INDIVIDUALS  OR  FAMILIES WHOSE HOUSEHOLD
INCOME DOES NOT EXCEED ONE HUNDRED TWENTY-FIVE PERCENT OF THE AREA MEDI-
AN INCOME, ADJUSTED FOR FAMILY SIZE.
  (C) THE FISCAL OFFICER SHALL HAVE THE POWER TO ENFORCE THE  PROVISIONS
OF  THIS  SUBDIVISION.  IN ENFORCING SUCH PROVISIONS, THE FISCAL OFFICER
SHALL HAVE THE POWER:
  (I) TO INSTITUTE AND CONDUCT INSPECTIONS AT THE SITE OF  THE  WORK  OR
ELSEWHERE;
  (II)  TO  EXAMINE  THE  BOOKS, DOCUMENTS AND RECORDS PERTAINING TO THE
WAGES PAID TO, AND THE HOURS OF WORK PERFORMED BY, CONSTRUCTION WORKERS;
  (III) TO HOLD HEARINGS AND, IN CONNECTION THEREWITH, TO ISSUE  SUBPOE-
NAS,  ADMINISTER  OATHS  AND  EXAMINE  WITNESSES;  THE  ENFORCEMENT OF A
SUBPOENA ISSUED UNDER THIS SUBDIVISION SHALL BE REGULATED BY  THE  CIVIL
PRACTICE LAW AND RULES;
  (IV) TO REQUIRE THE APPLICANT TO FILE WITH THE FISCAL OFFICER A RECORD
OF THE WAGES ACTUALLY PAID BY SUCH APPLICANT TO THE CONSTRUCTION WORKERS
AND OF THEIR HOURS OF WORK;
  (V)  TO  DELEGATE  ANY OF THE FOREGOING POWERS TO HIS OR HER DEPUTY OR
OTHER AUTHORIZED REPRESENTATIVE; AND
  (VI) TO PROMULGATE RULES AS HE OR SHE SHALL CONSIDER NECESSARY FOR THE
PROPER EXECUTION OF THE DUTIES, RESPONSIBILITIES  AND  POWERS  CONFERRED
UPON HIM OR HER BY THE PROVISIONS OF THIS PARAGRAPH.
  (D)  IF  THE  FISCAL  OFFICER  FINDS  THAT THE APPLICANT HAS FAILED TO
COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION, HE OR SHE SHALL  PRESENT
EVIDENCE OF SUCH NONCOMPLIANCE TO THE AGENCY.
  9. REPLACEMENT RATIO. IF THE LAND ON WHICH AN ELIGIBLE SITE IS LOCATED
CONTAINED  ANY DWELLING UNITS THREE YEARS PRIOR TO THE COMMENCEMENT DATE
OF THE FIRST ELIGIBLE MULTIPLE DWELLING THEREON, THEN SUCH ELIGIBLE SITE
SHALL CONTAIN AT LEAST ONE AFFORDABLE HOUSING  UNIT  FOR  EACH  DWELLING
UNIT THAT EXISTED ON SUCH DATE AND WAS THEREAFTER DEMOLISHED, REMOVED OR
RECONFIGURED.
  10. CONCURRENT EXEMPTIONS OR ABATEMENTS. AN ELIGIBLE MULTIPLE DWELLING
RECEIVING 421-AA BENEFITS SHALL NOT RECEIVE ANY EXEMPTION FROM OR ABATE-
MENT OF REAL PROPERTY TAXATION UNDER ANY OTHER LAW.
  11.   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-AA BENEFITS UNLESS THE AGENCY AUTHORIZES SUCH RENUNCIATION OR TERMI-
NATION IN CONNECTION WITH THE COMMENCEMENT OF A NEW TAX EXEMPTION PURSU-

S. 8133                            12

ANT TO EITHER THE PRIVATE HOUSING FINANCE LAW OR  SECTION  FOUR  HUNDRED
TWENTY-C OF THIS TITLE.
  12.  TERMINATION  OR  REVOCATION.  THE  AGENCY MAY TERMINATE OR REVOKE
421-AA BENEFITS FOR NONCOMPLIANCE WITH THIS SECTION. IF 421-AA  BENEFITS
ARE  TERMINATED  OR  REVOKED FOR NONCOMPLIANCE WITH THIS SECTION, ALL OF
THE AFFORDABLE HOUSING UNITS SHALL REMAIN SUBJECT TO RENT  STABILIZATION
OR  FOR  A  HOMEOWNERSHIP  PROJECT SUCH PROJECT SHALL CONTINUE TO COMPLY
WITH AFFORDABILITY OPTION D OF THIS SUBDIVISION AND ALL  OTHER  REQUIRE-
MENTS  OF  THIS  SECTION  FOR  THE RESTRICTION PERIOD AND ANY ADDITIONAL
PERIOD EXPRESSLY PROVIDED IN THIS SECTION, AS IF THE 421-AA BENEFITS HAD
NOT BEEN TERMINATED OR REVOKED.
  13. POWERS CUMULATIVE. THE  ENFORCEMENT  PROVISIONS  OF  THIS  SECTION
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.
  14. MULTIPLE TAX LOTS. IF AN ELIGIBLE SITE CONTAINS MULTIPLE TAX LOTS,
AN  APPLICATION MAY BE SUBMITTED WITH RESPECT TO ONE OR MORE OF SUCH TAX
LOTS.  THE AGENCY SHALL DETERMINE ELIGIBILITY FOR 421-AA BENEFITS  BASED
UPON  THE  TAX  LOTS  INCLUDED IN SUCH APPLICATION AND BENEFITS FOR EACH
MULTIPLE DWELLING SHALL COMMENCE UPON COMMENCEMENT  OF  CONSTRUCTION  OF
SUCH  MULTIPLE DWELLING AND SATISFACTION OF THE REQUIREMENTS OF SUBDIVI-
SION SIX OF THIS SECTION.
  15. APPLICATIONS. (A) 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.
  (B)  NOTWITHSTANDING  THE  PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
LAW TO THE CONTRARY, THE AGENCY MAY REQUIRE BY RULE THAT APPLICATIONS BE
FILED ELECTRONICALLY.
  (C) THE AGENCY MAY RELY ON CERTIFICATION BY AN ARCHITECT  OR  ENGINEER
SUBMITTED  BY  AN APPLICANT IN CONNECTION WITH THE FILING OF AN APPLICA-
TION. A FALSE CERTIFICATION BY  SUCH  ARCHITECT  OR  ENGINEER  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 THERE-
AFTER BE INELIGIBLE TO SUBMIT A CERTIFICATION PURSUANT TO THIS SECTION.
  16.  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.
  17.  RULES. THE AGENCY MAY PROMULGATE ANY NECESSARY RULES TO CARRY OUT
THE PROVISIONS OF THIS SECTION.
  18. ELECTION. NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE  CONTRA-
RY,  A  RENTAL PROJECT OR HOMEOWNERSHIP PROJECT WITH A COMMENCEMENT DATE
ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN  THAT  HAS  NOT
RECEIVED BENEFITS PURSUANT TO SECTION 421-A OF THE REAL PROPERTY TAX LAW
MAY ELECT TO COMPLY WITH THIS SECTION AND RECEIVE 421-AA BENEFITS PURSU-
ANT TO THIS SECTION.
  S  5.  Paragraph  (c)  of  subdivision 13 of section 421-a of the real
property tax law, as added by chapter 15 of the laws of 2008, is amended
to read as follows:

S. 8133                            13

  (c) With respect to any multiple dwelling in a UDC Large Scale Project
that meets the requirements of paragraph (c)  of  subdivision  seven  of
this section, the period of tax benefits awarded to such multiple dwell-
ing shall be the same as the period of tax benefits awarded under clause
(A)  of  subparagraph  (iii) of paragraph (a) of subdivision two of this
section. With respect to any multiple dwelling  in  a  UDC  Large  Scale
Project that does not meet the requirements of paragraph (c) of subdivi-
sion  seven  of this section, the period of tax benefits awarded to such
multiple dwelling shall be the  same  as  the  period  of  tax  benefits
awarded under clause (A) of subparagraph (ii) of paragraph (a) of subdi-
vision  two  of  this  section AND THE PROVISIONS OF SUBDIVISION NINE OF
THIS SECTION SHALL NOT APPLY.  The tax benefits awarded to any  multiple
dwelling  in a UDC Large Scale Project shall commence upon the commence-
ment of construction of such multiple dwelling, provided, however,  that
such  multiple  dwelling  meets all of the requirements for tax benefits
pursuant to this section. For each successive fifteen hundred units of a
UDC Large Scale Project, the  local  housing  agency  must  certify  the
completion  of  any  affordable units, as defined in subparagraph (i) of
paragraph (a) of subdivision seven of this section, required to  qualify
any  multiple  dwelling  or  multiple  dwellings comprising such fifteen
hundred units for any tax benefits awarded pursuant to  this  paragraph.
The  existence  of such special certification requirement and its finan-
cial impact upon all units, including, but not limited to, revocation of
tax benefits awarded pursuant to this paragraph if such special  certif-
ication  requirement is not met, shall be disclosed as a special risk in
any offering plan for any units in a UDC Large Scale Project.
  S 6. Subdivision 13 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)  "COMMENCEMENT DATE" SHALL MEAN, WITH RESPECT TO ANY BUILDING IN A
UDC LARGE SCALE PROJECT AND NOTWITHSTANDING ANY LOCAL LAW TO THE CONTRA-
RY, 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  CONVER-
SION,  ALTERATION  OR IMPROVEMENT OF THE PRE-EXISTING BUILDING OR STRUC-
TURE LAWFULLY BEGINS IN GOOD FAITH.
  (F) ALL MULTIPLE DWELLINGS IN A  UDC  LARGE  SCALE  PROJECT  SHALL  BE
ELIGIBLE  FOR  EXEMPTION FROM TAXATION PURSUANT TO PARAGRAPH (C) OF THIS
SUBDIVISION AND TO THE EXTENT PERMITTED BY THIS SECTION, PROVIDED  THAT:
(I)  ANY  MULTIPLE DWELLING IN A UDC LARGE SCALE PROJECT HAS A COMMENCE-
MENT DATE ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN;  AND
(II) ANY MULTIPLE DWELLING WITH A COMMENCEMENT DATE SUBSEQUENT TO DECEM-
BER  THIRTY-FIRST,  TWO THOUSAND FIFTEEN RECEIVES ITS FIRST TEMPORARY OR
PERMANENT CERTIFICATE OF OCCUPANCY COVERING ALL RESIDENTIAL AREAS ON  OR
BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND THIRTY-FIVE.
  S 7. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 8. This act shall take effect immediately and be deemed to have been
in full force and effect on and after January 1, 2016.