Relates 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
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| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jun 13, 2016 |
referred to rules |
Relates to the exemption of new multiple dwellings from taxation; establishes the affordable housing tax exemption program; defines terms of such program; outlines benefits, tax payments, limitations on benefits for non-residential space, concurrent exemptions or abatements, termination or revocation
BILL NUMBER: S8133
TITLE OF BILL :
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
SUMMARY OF PROVISIONS :
Section one repeals subdivision 16 and 16-a of section 421-a of the
real property tax law ("RPTL").
Section two amends the definitions under subdivision 17 of section
421-a to add a fifteen year benefit property.
Section three repeals paragraph (p) of subdivision 17 of 421-a.
Section four adds a new 421-aa affordable housing tax exemption
program, which would, in a city having a population of one million or
more, set 421-aa eligibility requirements and benefit periods for
multiple dwellings that commence construction after December 31, 2015
and on or before June 15, 2021, and that complete construction on or
before December 31, 2025. Such multiple dwellings would be required to
contain at least six dwelling units created through new construction
or eligible conversion that are operated as rentals, or as a
homeownership project outside the borough of Manhattan Such multiple
dwellings would need to provide affordable housing either onsite or
offsite through one of three affordability options as rentals or a
separate option for homeownership projects, in order to be eligible
for thirty-five years of exemption from real property taxation, other
than assessments for local improvements. Such multiple dwellings would
receive a 100% exemption from real property taxation during the
construction period for a maximum of three years, a 100% exemption
from real property taxation for the first 25 years following
completion, and, for the final 10 years of the exemption period, an
exemption from real property taxation equal to the percentage of
affordable units included in such multiple dwelling. Such multiple
dwellings would continue to pay taxes on the assessed value of the
land and improvements during the tax year prior to commencement of
construction, and all assessments for local improvements. The 421-aa
benefit would be reduced by the aggregate floor area of commercial,
community facility and accessory use space, other than parking which
is located not more than 23 feet above the curb level, in excess of
12% of the aggregate floor area. The three affordability options
available to rental type projects seeking the 421-aa benefit would be:
(a) not less than 10% of dwelling units affordable to those at or
below 40% of area median income ("AMI"), not less than an additional
10% at or below 60% of AMI and not less than an additional 5% at or
below 130% of AMI, with no governmental assistance other than tax
exempt bond proceeds and 4% tax credits; (b) not less than 10% at or
below 70% of AMI and not less than an additional 20% at or below 130%
of AMI; and (c) not less than 30% at or below 130% of AMI, with no
governmental assistance. The affordability option for homeownership
projects would require that 25% of the units on average have an
average assessed value of $75,000 or less. These affordability
requirements for rentals would apply throughout the 421-aa benefit
period at both initial rental and upon vacancy. Such affordable units
could not be rented on a temporary, transient or short-term basis, nor
converted to cooperative or condominium ownership. Tenants below such
maximum AMIs would be expressly allowed to occupy such affordable
units. All rental dwelling units would have to be accessed through the
same street entrances and lobbies, and no such entrance or lobby could
serve some rental dwelling units to the exclusion of others. The
affordable dwelling units in all of the three affordability options
would remain rent stabilized until the first vacancy following the
expiration of the 421-aa benefits, even if such benefits are revoked.
Unless preempted by other governmental requirements, such affordable
units would be required to have a unit mix proportional to the market
rate units, or at least 50% of the affordable units would be required
to have two or more bedrooms and no more than 25% of the affordable
units could have less than one bedroom. Applicants for 421-aa benefits
would be required to provide prevailing wages for building service
employees as required under current law. The fiscal officer would be
authorized to enforce the prevailing wage requirement, and would be
required to present evidence of any noncompliance to the department of
housing preservation and development. If dwelling units existed on the
site three years prior to commencement of construction, the number of
affordable units provided must equal or exceed the number of such
units that were removed or demolished. Concurrent exemptions or
abatements are prohibited. The department of housing preservation and
development would be authorized to permit the voluntary termination of
421-aa benefits only in connection with the commencement of a new tax
exemption pursuant to either RPTL section 420-c or the Private Housing
Finance Law. The department of housing preservation and development
could also terminate or revoke 421-aa benefits for noncompliance.
Applications would have to be filed within one year after completion,
and the department of housing preservation and development would be
authorized to require a filing fee of $3,000 per dwelling unit unless
lesser fees are authorized pursuant to rule for
governmentally-assisted projects. The department of housing
preservation and development also could require by rule that
applications be filed electronically.
Section five and six amend subdivision 13 of section 421-a of the real
property tax law and would allow for condos to be applicable to the
421-a program that remains in effect.
Section seven of the bill provides a severability clause. Section
eight of the bill provides for effective dates.
JUSTIFICATION :
In 1971, RPTL section 421-a was implemented to provided tax benefits
for the construction of new residential buildings in New York City.
Over the last forty-five years, the State Legislature has periodically
revised the program. The program was suspended in January, 2016.
There continues to be a great need to address the shortage of
affordable housing in New York City. This legislation would provide
for a replacement program, the 421-aa program.
Under the proposed legislation, affordability requirements will be a
Citywide prerequisite to receiving any 421-aa benefits. The bill
provides developers with three options for rental properties and one
option for homeownership projects, and limits additional subsidies to
certain options. Only dwelling units operated as rentals or on a
condominium and cooperative basis will be eligible for benefits, and
all rental dwelling units must be accessed through the same street
entrances and lobbies. Each eligible project will get 35 years of
benefits, and the last 10 years of such benefits will be based upon
each project's specific percentage of affordable units. Rather than a
bifurcated application process in which applicants must file one
application for construction period benefits and another application
for final benefits, applicants will file a single application within
one year after completion, and construction period benefits will be
applied retroactively. Any dwelling unit that was on the site three
years prior to commencement of construction or conversion and was
thereafter demolished, removed or reconfigured, must be replaced with
an affordable dwelling unit.
Eligible multiple dwellings must have a commencement date after
December 31, 2015 and on or before June 15, 2021 and a completion date
on or before December 31, 2025. The language makes clear that if an
eligible site contains multiple tax lots, and application may be
submitted with respect to one or more of such tax lots, and the 421-aa
benefit would run separately with respect to each tax lot.
Applicants for 421-aa benefits would be required to provide prevailing
wages for building service employees as was similarly required under
the 421-a program. The 421-aa program would provide that all
construction workers shall be paid an hourly compensation package that
is no less 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 legislation, the affordable housing wage rate
would be $15 per hour and the health benefits supplement rate, $1.50
per hour. The affordable housing wage rate would increase $1.50 each
year to $21 per hour effective January 1, 2020. 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
(exception when an eligible multiple dwelling has at least 50%
affordable units).
Finally, the legislation would also allow condominiums and
cooperatives to be grandfathered into the 421-a program still in
effect.
LEGISLATIVE HISTORY :
New Legislation
FISCAL IMPLICATIONS :
None to State
EFFECTIVE DATE :
This act shall take effect immediately and be deemed to have been in
full force and effect on and after January 1, 2016.
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.
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