S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2696
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 25, 2019
                                ___________
 
 Introduced by M. of A. LENTOL -- read once and referred to the Committee
   on Real Property Taxation
 
 AN  ACT  to amend the real property tax law, in relation to exemption of
   new multiple dwellings from local taxation
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  421-a of the real property tax law is amended by
 adding a new subdivision 18 to read as follows:
   18. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION:
   (I) "421-A BENEFITS" SHALL MEAN EXEMPTION FROM REAL PROPERTY  TAXATION
 PURSUANT TO THIS SUBDIVISION.
   (II)  "CONDOMINIUM  OR  COOPERATIVE  AFFORDABILITY  OPTION" SHALL ONLY
 APPLY TO A HOMEOWNERSHIP PROJECT, OF WHICH ONE HUNDRED  PERCENT  OF  THE
 UNITS  SHALL: (A) HAVE AN ACTUAL SALES PRICE THAT SHALL BE AFFORDABLE TO
 AN INDIVIDUAL OR FAMILY WHOSE INCOME AT THE TIME OF THE  SALE  DOES  NOT
 EXCEED ONE HUNDRED SIXTY-FIVE PERCENT OF THE AREA MEDIAN INCOME ADJUSTED
 FOR  FAMILY  SIZE  OR (B) BE OFFERED FOR RENT TO AN INDIVIDUAL OR FAMILY
 WHOSE INCOME AT THE TIME OF OCCUPANCY DOES NOT EXCEED EIGHTY PERCENT  OF
 THE AREA MEDIAN INCOME ADJUSTED FOR FAMILY SIZE SUCH A UNIT SHALL NOT BE
 RENTED  ON  A  TEMPORARY, TRANSIENT OR SHORT-TERM BASIS. EVERY LEASE AND
 RENEWAL THEREOF FOR SUCH UNIT RENTAL SHALL BE FOR A TERM OF ONE  OR  TWO
 YEARS, AT THE OPTION OF THE TENANT.
   (III)  "AGENCY"  SHALL MEAN THE DEPARTMENT OF HOUSING PRESERVATION AND
 DEVELOPMENT.
   (IV) "APPLICATION" SHALL MEAN AN APPLICATION FOR 421-A BENEFITS.
   (V) "AREA MEDIAN INCOME" SHALL MEAN THE AREA MEDIAN INCOME ESTABLISHED
 BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN  DEVELOPMENT  OR  A
 SUCCESSOR AGENCY.
   (VI)  "COMMENCEMENT  DATE"  SHALL  MEAN,  WITH RESPECT TO ANY ELIGIBLE
 MULTIPLE DWELLING, THE DATE UPON WHICH EXCAVATION  AND  CONSTRUCTION  OF
 INITIAL  FOOTINGS  AND FOUNDATIONS LAWFULLY BEGINS IN GOOD FAITH OR, FOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04647-01-9

 A. 2696                             2
 
 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.
   (VII)  "COMPLETION  DATE"  SHALL  MEAN  THE  DATE UPON WHICH THE LOCAL
 DEPARTMENT OF BUILDINGS ISSUES THE FIRST TEMPORARY OR PERMANENT  CERTIF-
 ICATE  OF OCCUPANCY COVERING ALL RESIDENTIAL AREAS OF AN ELIGIBLE MULTI-
 PLE DWELLING.
   (VIII) "CONSTRUCTION PERIOD" SHALL MEAN, WITH RESPECT TO ANY  ELIGIBLE
 MULTIPLE DWELLING, A PERIOD: (A) BEGINNING ON THE LATER OF THE COMMENCE-
 MENT  DATE  OF SUCH ELIGIBLE MULTIPLE DWELLING OR THREE YEARS BEFORE THE
 COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELLING; AND  (B)  ENDING  ON
 THE  DAY  PRECEDING THE COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELL-
 ING.
   (IX) "ELIGIBLE CONVERSION" SHALL MEAN THE  CONVERSION,  ALTERATION  OR
 IMPROVEMENT  OF  A  PRE-EXISTING  BUILDING  OR  STRUCTURE RESULTING IN A
 MULTIPLE DWELLING IN WHICH NO MORE THAN FORTY-NINE PERCENT OF THE  FLOOR
 AREA CONSISTS OF SUCH PRE-EXISTING BUILDING OR STRUCTURE.
   (X)  "ELIGIBLE  MULTIPLE  DWELLING" SHALL MEAN A HOMEOWNERSHIP PROJECT
 CONTAINING FOUR OR MORE DWELLING UNITS CREATED THROUGH NEW  CONSTRUCTION
 OR ELIGIBLE CONVERSION FOR WHICH THE COMMENCEMENT DATE IS AFTER DECEMBER
 THIRTY-FIRST,  TWO  THOUSAND  SEVENTEEN AND ON OR BEFORE JUNE FIFTEENTH,
 TWO THOUSAND TWENTY-ONE, AND FOR WHICH THE  COMPLETION  DATE  IS  ON  OR
 BEFORE JUNE FIFTEENTH, TWO THOUSAND TWENTY-FIVE.
   (XI)  "ELIGIBLE  SITE"  SHALL MEAN EITHER: (A) A TAX LOT CONTAINING AN
 ELIGIBLE MULTIPLE DWELLING; OR (B) A ZONING LOT CONTAINING TWO  OR  MORE
 ELIGIBLE MULTIPLE DWELLINGS THAT ARE PART OF A SINGLE APPLICATION.
   (XII)  "FLOOR  AREA"  SHALL  MEAN  THE HORIZONTAL AREAS OF THE SEVERAL
 FLOORS, OR ANY PORTION THEREOF, OF A DWELLING OR DWELLINGS, AND ACCESSO-
 RY STRUCTURES ON A LOT MEASURED FROM  THE  EXTERIOR  FACES  OF  EXTERIOR
 WALLS, OR FROM THE CENTER LINE OF PARTY WALLS.
   (XIII)  "HOMEOWNERSHIP  PROJECT"  SHALL  MEAN  A  MULTIPLE DWELLING OR
 PORTION THEREOF OPERATED AS CONDOMINIUM OR COOPERATIVE HOUSING, HOWEVER,
 IT SHALL NOT INCLUDE A MULTIPLE DWELLING OR PORTION THEREOF OPERATED  AS
 COOPERATIVE OR CONDOMINIUM HOUSING LOCATED WITHIN THE BOROUGH OF MANHAT-
 TAN.
   (XIV)  "MULTIPLE  DWELLING"  SHALL  HAVE  THE MEANING SET FORTH IN THE
 MULTIPLE DWELLING LAW.
   (XV) "RESTRICTION PERIOD"  SHALL  MEAN  A  PERIOD  COMMENCING  ON  THE
 COMPLETION  DATE  AND  EXPIRING  ON  THE  TWENTIETH  ANNIVERSARY  OF THE
 COMPLETION DATE.
   (XVI) "TWENTY YEAR BENEFIT" SHALL MEAN: (A) FOR THE CONSTRUCTION PERI-
 OD, A ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY  TAXATION,  OTHER
 THAN  ASSESSMENTS  FOR  LOCAL  IMPROVEMENTS;  (B) FOR THE FIRST FOURTEEN
 YEARS OF THE RESTRICTION PERIOD, A ONE HUNDRED  PERCENT  EXEMPTION  FROM
 REAL  PROPERTY  TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;
 AND (C) FOR THE FINAL SIX YEARS OF THE RESTRICTION PERIOD, A TWENTY-FIVE
 PERCENT EXEMPTION FROM REAL PROPERTY TAXATION,  OTHER  THAN  ASSESSMENTS
 FOR  LOCAL  IMPROVEMENTS;  PROVIDED,  HOWEVER,  THAT  NO EXEMPTION UNDER
 CLAUSE (B) OR (C) OF THIS SUBPARAGRAPH SHALL BE GIVEN FOR ANY UNIT WHICH
 DOES NOT QUALIFY UNDER  THE  CONDOMINIUM  OR  COOPERATIVE  AFFORDABILITY
 REQUIREMENT.
   (B)  BENEFIT.  IN  CITIES  HAVING A POPULATION OF ONE MILLION OR MORE,
 NOTWITHSTANDING THE PROVISIONS OF ANY OTHER SUBDIVISION OF THIS  SECTION
 OR OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, A HOMEOWNERSHIP
 PROJECT  THAT  MEETS  ALL  OF THE REQUIREMENTS OF THIS SUBDIVISION SHALL
 RECEIVE A TWENTY YEAR BENEFIT.

 A. 2696                             3
 
   (C) TAX PAYMENTS. IN ADDITION TO ANY OTHER AMOUNTS PAYABLE PURSUANT TO
 THIS SUBDIVISION, THE OWNER OF ANY ELIGIBLE SITE RECEIVING  421-A  BENE-
 FITS  SHALL  PAY,  IN  EACH TAX YEAR IN WHICH SUCH 421-A BENEFITS ARE IN
 EFFECT, REAL PROPERTY TAXES AND ASSESSMENTS AS FOLLOWS:
   (I)  WITH  RESPECT  TO  EACH ELIGIBLE MULTIPLE DWELLING CONSTRUCTED ON
 SUCH ELIGIBLE SITE, REAL PROPERTY TAXES ON  THE  ASSESSED  VALUATION  OF
 SUCH  LAND  AND  ANY  IMPROVEMENTS THEREON IN EFFECT DURING THE TAX YEAR
 PRIOR TO THE COMMENCEMENT DATE OF SUCH ELIGIBLE MULTIPLE DWELLING, WITH-
 OUT REGARD TO ANY EXEMPTION FROM OR ABATEMENT OF REAL PROPERTY  TAXATION
 IN  EFFECT  DURING  SUCH  TAX  YEAR,  WHICH REAL PROPERTY TAXES SHALL BE
 CALCULATED USING THE TAX RATE IN EFFECT AT THE TIME SUCH TAXES ARE  DUE;
 AND
   (II) ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
   (D) LIMITATION ON BENEFITS FOR NON-RESIDENTIAL SPACE. IF THE AGGREGATE
 FLOOR  AREA OF COMMERCIAL, COMMUNITY FACILITY AND ACCESSORY USE SPACE IN
 AN ELIGIBLE SITE, OTHER THAN PARKING WHICH  IS  LOCATED  NOT  MORE  THAN
 TWENTY-THREE  FEET  ABOVE  THE CURB LEVEL, EXCEEDS TWELVE PERCENT OF THE
 AGGREGATE FLOOR AREA IN SUCH ELIGIBLE SITE, ANY 421-A BENEFITS SHALL  BE
 REDUCED BY A PERCENTAGE EQUAL TO SUCH EXCESS.
   (E)  CALCULATION  OF BENEFIT. BASED ON THE CERTIFICATION OF THE AGENCY
 CERTIFYING THE APPLICANT'S ELIGIBILITY FOR 421-A BENEFITS, THE ASSESSORS
 SHALL CERTIFY TO THE COLLECTING  OFFICER  THE  AMOUNT  OF  TAXES  TO  BE
 EXEMPTED.
   (F)  AFFORDABILITY  REQUIREMENTS.  DURING  THE  RESTRICTION  PERIOD, A
 HOMEOWNERSHIP PROJECT SHALL COMPLY WITH SUBPARAGRAPH (II)  OF  PARAGRAPH
 (A)  OF  THIS SUBDIVISION. FAILURE TO COMPLY WITH THE PROVISIONS OF THIS
 PARAGRAPH SHALL RESULT IN REVOCATION OF ANY 421-A BENEFITS FOR THE PERI-
 OD OF SUCH NON-COMPLIANCE.
   (G) LOWER INCOME RENTALS.  NOTHING IN THIS SUBDIVISION, OR  ANY  OTHER
 PROVISION OF LAW SHALL: (I) PROHIBIT THE OCCUPANCY OF A UNIT BY INDIVID-
 UALS  OR  FAMILIES  WHOSE  INCOME  AT  ANY TIME IS LESS THAN THE MAXIMUM
 PERCENTAGE OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY  SIZE,  SPECI-
 FIED  FOR  SUCH  UNIT PURSUANT TO THIS SUBDIVISION, OR (II) PROHIBIT THE
 OWNER OF AN ELIGIBLE SITE FROM REQUIRING, UPON INITIAL  RENTAL  OR  UPON
 ANY  RENTAL FOLLOWING A VACANCY, THE OCCUPANCY OF ANY UNIT BY SUCH LOWER
 INCOME INDIVIDUALS OR FAMILIES.
   (H) AGENCY REQUIREMENTS.  THE AGENCY SHALL ESTABLISH BY RULE  REQUIRE-
 MENTS FOR THE MARKETING AND MONITORING OF ANY HOMEOWNERSHIP PROJECT THAT
 IS  GRANTED AN EXEMPTION PURSUANT TO THIS SUBDIVISION. SUCH REQUIREMENTS
 SHALL INCLUDE: (I) IF QUALIFYING BY SALES  PRICE,  CERTIFICATION  BY  AN
 ARCHITECT  OR  ENGINEER  VERIFYING  NUMBER  OF  BEDROOMS AND A CERTIFIED
 PUBLIC ACCOUNTANT VERIFYING AFFORDABLE SALES PRICE AND (II) IF  QUALIFY-
 ING BY RENTAL, THE FILING ANNUALLY OF AN AFFIDAVIT BY THE OWNER CERTIFY-
 ING  THAT A UNIT IS RENTED AT OR BELOW EIGHTY PERCENT OF THE AREA MEDIAN
 INCOME BASED ON HOUSEHOLD SIZE.
   (I) CONCURRENT EXEMPTIONS OR ABATEMENTS. AN ELIGIBLE MULTIPLE DWELLING
 RECEIVING 421-A BENEFITS SHALL NOT RECEIVE ANY EXEMPTION FROM OR  ABATE-
 MENT OF REAL PROPERTY TAXATION UNDER ANY OTHER LAW.
   (J)   VOLUNTARY   RENUNCIATION  OR  TERMINATION.  NOTWITHSTANDING  THE
 PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL  LAW  TO  THE  CONTRARY,  AN
 OWNER  SHALL  NOT  BE  ENTITLED TO VOLUNTARILY RENOUNCE OR TERMINATE ANY
 421-A BENEFITS UNLESS THE AGENCY AUTHORIZES SUCH RENUNCIATION OR  TERMI-
 NATION IN CONNECTION WITH THE COMMENCEMENT OF A NEW TAX EXEMPTION PURSU-
 ANT  TO  EITHER  THE PRIVATE HOUSING FINANCE LAW OR SECTION FOUR HUNDRED
 TWENTY-C OF THIS TITLE.

 A. 2696                             4
 
   (K) TERMINATION OR REVOCATION. THE  AGENCY  MAY  TERMINATE  OR  REVOKE
 421-A  BENEFITS  FOR NONCOMPLIANCE WITH THIS SUBDIVISION. IF 421-A BENE-
 FITS ARE TERMINATED OR REVOKED FOR NONCOMPLIANCE WITH THIS  SUBDIVISION,
 A  HOMEOWNERSHIP PROJECT SHALL CONTINUE TO COMPLY WITH SUBPARAGRAPH (II)
 OF  PARAGRAPH (A) OF THIS SUBDIVISION AND ALL OTHER REQUIREMENTS OF THIS
 SUBDIVISION  FOR  THE  RESTRICTION  PERIOD  AND  ANY  ADDITIONAL  PERIOD
 EXPRESSLY PROVIDED IN THIS SUBDIVISION, AS IF THE 421-A BENEFITS HAD NOT
 BEEN TERMINATED OR REVOKED.
   (L)  POWERS CUMULATIVE. THE ENFORCEMENT PROVISIONS OF THIS SUBDIVISION
 SHALL NOT BE EXCLUSIVE, AND ARE IN ADDITION TO ANY OTHER  RIGHTS,  REME-
 DIES,  OR  ENFORCEMENT POWERS SET FORTH IN ANY OTHER LAW OR AVAILABLE AT
 LAW OR IN EQUITY.
   (M) APPLICATIONS. (I) THE APPLICATION WITH  RESPECT  TO  ANY  ELIGIBLE
 MULTIPLE DWELLING SHALL BE FILED WITH THE AGENCY NOT LATER THAN ONE YEAR
 AFTER THE COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELLING.
   (II)  NOTWITHSTANDING  THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
 LAW TO THE CONTRARY, THE AGENCY MAY REQUIRE BY RULE THAT APPLICATIONS BE
 FILED ELECTRONICALLY.
   (III) THE AGENCY MAY RELY ON CERTIFICATION BY AN ARCHITECT OR ENGINEER
 OR CERTIFIED PUBLIC ACCOUNTANT SUBMITTED BY AN APPLICANT  IN  CONNECTION
 WITH  THE FILING OF AN APPLICATION. A FALSE CERTIFICATION BY SUCH ARCHI-
 TECT OR ENGINEER OR CERTIFIED PUBLIC ACCOUNTANT SHALL BE  DEEMED  TO  BE
 PROFESSIONAL  MISCONDUCT  PURSUANT TO SECTION SIXTY-FIVE HUNDRED NINE OF
 THE EDUCATION LAW. ANY LICENSEE FOUND GUILTY OF  SUCH  MISCONDUCT  UNDER
 THE  PROCEDURES  PRESCRIBED  IN  SECTION  SIXTY-FIVE  HUNDRED TEN OF THE
 EDUCATION LAW SHALL BE SUBJECT TO THE PENALTIES  PRESCRIBED  IN  SECTION
 SIXTY-FIVE  HUNDRED ELEVEN OF THE EDUCATION LAW, AND SHALL THEREAFTER BE
 INELIGIBLE TO SUBMIT A CERTIFICATION PURSUANT TO THIS SUBDIVISION.
   (N) FILING FEE. THE AGENCY MAY REQUIRE A FILING FEE OF THREE  THOUSAND
 DOLLARS  PER  DWELLING UNIT IN CONNECTION WITH ANY APPLICATION. HOWEVER,
 THE AGENCY MAY PROMULGATE RULES IMPOSING A LESSER FEE FOR ELIGIBLE SITES
 CONTAINING ELIGIBLE MULTIPLE DWELLINGS CONSTRUCTED WITH THE  SUBSTANTIAL
 ASSISTANCE OF GRANTS, LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE OR
 LOCAL  GOVERNMENTAL  AGENCY OR INSTRUMENTALITY PURSUANT TO A PROGRAM FOR
 THE DEVELOPMENT OF AFFORDABLE HOUSING.
   (O) RULES.  THE  AGENCY  SHALL  PROMULGATE  RULES  TO  CARRY  OUT  THE
 PROVISIONS OF THIS SUBDIVISION.
   (P)  AUTHORITY  OF CITY TO ENACT LOCAL LAW. EXCEPT AS OTHERWISE SPECI-
 FIED IN THIS SUBDIVISION, A CITY TO WHICH THIS SUBDIVISION IS APPLICABLE
 MAY ENACT A LOCAL LAW TO RESTRICT, LIMIT OR  CONDITION  THE  ELIGIBILITY
 FOR  OR  THE  SCOPE  OR AMOUNT OF 421-A BENEFITS IN ANY MANNER, PROVIDED
 THAT SUCH LOCAL LAW MAY NOT GRANT 421-A BENEFITS BEYOND  THOSE  PROVIDED
 IN  THIS  SUBDIVISION AND PROVIDED FURTHER THAT SUCH LOCAL LAW SHALL NOT
 TAKE EFFECT SOONER THAN ONE YEAR AFTER IT IS ENACTED. THE PROVISIONS  OF
 SECTIONS  11-245  AND 11-245.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF
 NEW YORK OR OF ANY OTHER LOCAL LAW OF THE CITY OF  NEW  YORK  THAT  WERE
 ENACTED  ON  OR  BEFORE  THE  EFFECTIVE DATE OF THIS PARAGRAPH SHALL NOT
 RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY FOR OR THE SCOPE OR  AMOUNT
 OF 421-A BENEFITS PURSUANT TO THIS SUBDIVISION.
   § 2. Subparagraphs (v) and (liv) of paragraph (a) of subdivision 16 of
 section  421-a  of the real property tax law, as amended by section 3 of
 part TTT of chapter 59 of the laws of  2017,  are  amended  to  read  as
 follows:
   (v)  "Affordability  option  D"  shall  only  apply to a homeownership
 project[, of which one hundred percent of the units shall have an  aver-
 age  assessed  value  not to exceed sixty-five thousand dollars upon the

 A. 2696                             5

 first assessment following the completion date and where each  owner  of
 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] WHICH COMPLIES WITH SUBDIVISION EIGHTEEN OF THIS SECTION.
   (liv)  "Twenty  year  benefit"  shall  [mean: (A) for the construction
 period, a one hundred percent exemption  from  real  property  taxation,
 other  than  assessments for local improvements; (B) for the first four-
 teen years of the restriction period, a one  hundred  percent  exemption
 from  real  property taxation, other than assessments for local improve-
 ments, provided, however, that no  exemption  shall  be  given  for  any
 portion of a unit's assessed value that exceeds $65,000; and (C) for the
 next  six  years  of  the  restriction  period,  a  twenty-five  percent
 exemption from real property taxation, other than assessments for  local
 improvements,  provided,  however,  that no exemption shall be given for
 any portion of a unit's assessed value that exceeds  $65,000]  HAVE  THE
 MEANING SET FORTH IN SUBDIVISION EIGHTEEN OF THIS SECTION.
   § 3. This act shall take effect immediately.