Senate Bill S3238

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3238
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend the real property tax law, the administrative code of
   the city of New York and the New York city  charter,  in  relation  to
   changing tax exemption programs for the development of new and afford-
   able housing
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 421-a of the real property tax law
 is amended by adding two new paragraphs e and f to read as follows:
   E. "INITIAL CONSTRUCTION PERIOD." THE PERIOD OF TIME  NEEDED  FOR  THE
 CONSTRUCTION  OF  A  NEW  MULTIPLE DWELLING OR THE PERIOD OF THREE YEARS
 IMMEDIATELY FOLLOWING COMMENCEMENT OF  CONSTRUCTION,  WHICHEVER  EXPIRES
 SOONER, PROVIDED THAT CONSTRUCTION MUST BE COMPLETED UPON THE EXPIRATION
 OF  THIS  PERIOD  IN ORDER FOR SUCH MULTIPLE DWELLING TO REMAIN ELIGIBLE
 FOR THE EXEMPTION PROVIDED IN THIS SECTION.
   F. "EXTENDED CONSTRUCTION PERIOD."  THE  PERIOD  OF  TIME  IMMEDIATELY
 FOLLOWING  THE  INITIAL  CONSTRUCTION  PERIOD  NEEDED  TO  COMPLETE  THE
 CONSTRUCTION OF A NEW MULTIPLE DWELLING OR THE PERIOD  OF  THREE  YEARS,
 WHICHEVER EXPIRES SOONER.
   § 2. Paragraph (a) of subdivision 2 of section 421-a of the real prop-
 erty  tax  law,  as amended by chapter 288 of the laws of 1985, subpara-
 graph (i), clause (A) of subparagraph (ii) and clause  (A)  of  subpara-
 graph  (iii)  as amended by chapter 4 of the laws of 2013, clause (E) of
 subparagraph (iii) as added by chapter 618 of the laws of 2007, subpara-
 graph (iv) as added by chapter 832 of the laws of 1992,  clause  (A)  of
 subparagraph  (iv) as amended by section 63-a of part A of chapter 20 of
 the laws of 2015, is amended to read as follows:
   (a) (i) (A) Within a city having a population of one million or  more,
 new multiple dwellings, except hotels, shall be exempt from taxation for
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05188-01-1

 S. 3238                             2
 
 local  purposes,  other than assessments for local improvements, for the
 tax year or years immediately following taxable status  dates  occurring
 subsequent  to  the  commencement  and  prior  to  the completion of THE
 INITIAL construction PERIOD, but not to exceed three such tax years, and
 shall  continue to be exempt from such taxation in tax years immediately
 following the taxable status date first occurring after  the  expiration
 of  the  exemption  herein conferred during THE INITIAL construction [so
 long as used at the completion of construction  for  dwelling  purposes]
 PERIOD  for  a period not to exceed ten years in the aggregate after the
 taxable status date immediately following the  completion  [thereof]  OF
 THE  INITIAL  CONSTRUCTION  PERIOD  AND DURING THE EXTENDED CONSTRUCTION
 PERIOD IF SUCH PERIOD IS NEEDED, as follows:
   [(A)] A. except as otherwise  provided  herein  there  shall  be  full
 exemption from taxation during the [period of construction or the period
 of  three  years  immediately  following  commencement  of construction,
 whichever expires sooner] INITIAL CONSTRUCTION PERIOD, and for two years
 following such period;
   [(B)] B. followed by two years of exemption  from  eighty  [per  cent]
 PERCENT of such taxation;
   [(C)]  C.  followed  by  two  years of exemption from sixty [per cent]
 PERCENT of such taxation;
   [(D)] D. followed by two years of  exemption  from  forty  [per  cent]
 PERCENT of such taxation;
   [(E)]  E.  followed  by  two years of exemption from twenty [per cent]
 PERCENT of such taxation;
   (B) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
 CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST  BE  USED
 FOR DWELLING PURPOSES.
   The  following  table  shall  illustrate  the  computation  of the tax
 exemption:
 
                CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
 
                                                   Exemption
 During INITIAL Construction                       100%
 PERIOD (maximum three years)
 Following completion of [work] THE INITIAL
 CONSTRUCTION PERIOD
 Year:
  1                                                100%
  2                                                100
  3                                                 80
  4                                                 80
  5                                                 60
  6                                                 60
  7                                                 40
  8                                                 40
  9                                                 20
 10                                                 20
 
   (ii) (A) Within a city having a population of one million or more  the
 local  housing  agency  may  adopt  rules and regulations providing that
 except in areas excluded by local law  new  multiple  dwellings,  except
 hotels,  shall  be  exempt  from taxation for local purposes, other than
 assessments for local improvements, for the tax year or years immediate-
 ly following taxable status dates occurring subsequent to the  commence-

 S. 3238                             3
 
 ment and prior to the completion of THE INITIAL construction PERIOD, but
 not to exceed three such tax years, and shall continue to be exempt from
 such taxation in tax years immediately following the taxable status date
 first  occurring  after the expiration of the exemption herein conferred
 during  [such]  THE  INITIAL  construction  [so  long  as  used  at  the
 completion of construction for dwelling purposes] PERIOD, AND DURING THE
 EXTENDED  CONSTRUCTION PERIOD IF SUCH PERIOD IS NEEDED, for a period not
 to exceed fifteen years in the aggregate, as follows:
   a. except as otherwise provided herein there shall be  full  exemption
 from  taxation during the period of construction or the [period of three
 years immediately  following  commencement  of  construction,  whichever
 expires  sooner]  INITIAL  CONSTRUCTION  PERIOD,  and  for  eleven years
 following such period;
   b. followed by one year of exemption from eighty percent of such taxa-
 tion;
   c. followed by one year of exemption from sixty percent of such  taxa-
 tion;
   d.  followed by one year of exemption from forty percent of such taxa-
 tion;
   e. followed by one year of exemption from twenty percent of such taxa-
 tion.
   (B) The benefits of this subparagraph shall not be available in  areas
 made  ineligible for the benefits of this section by a local law enacted
 pursuant to paragraph (i) of THIS subdivision  [two  of  this  section],
 notwithstanding  any exceptions to ineligibility contained in such local
 law for certain types of projects in such areas.
   (C) Unless excluded by local law, in the city of New York the benefits
 of this subparagraph shall be available in the borough of Manhattan  for
 tax  lots  now  existing  or  hereafter  created south of or adjacent to
 either side of one hundred tenth street only if:
   a. the construction is carried out with the substantial assistance  of
 grants,  loans  or  subsidies from any federal, state or local agency or
 instrumentality, or
   b. the local housing agency has imposed a requirement or has certified
 that twenty percent of the units be affordable to families  of  low  and
 moderate income.
   (D) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
 CONSTRUCTION  PERIOD,  IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
 FOR DWELLING PURPOSES.
   The following table shall illustrate the computation of the exemption:

                CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
 
                                                   Exemption
 During INITIAL Construction                       100%
 PERIOD (maximum three years)
 Following completion of [work] THE INITIAL CONSTRUCTION
 PERIOD
 Year:
  1 through 11                                     100%
 12                                                 80
 13                                                 60
 14                                                 40
 15                                                 20

 S. 3238                             4
 
   (iii) (A) Within a city having a population of one million or more the
 local housing agency may adopt rules and regulations providing that  new
 multiple  dwellings,  except  hotels,  shall be exempt from taxation for
 local purposes, other than assessments for local improvements,  for  the
 tax  year  or years immediately following taxable status dates occurring
 subsequent to the commencement  and  prior  to  the  completion  of  THE
 INITIAL construction PERIOD, but not to exceed three such tax years, and
 shall  continue to be exempt from such taxation in tax years immediately
 following the taxable status date first occurring after  the  expiration
 of the exemption herein conferred during [such] THE INITIAL construction
 [so  long  as  used  at  the  completion  of  construction  for dwelling
 purposes] PERIOD, AND DURING THE EXTENDED CONSTRUCTION  PERIOD  IF  SUCH
 PERIOD  IS  NEEDED,  for a period not to exceed twenty-five years in the
 aggregate, provided that the area in which the project is situated is  a
 neighborhood  preservation program area as determined by the local hous-
 ing agency as of June first,  nineteen  hundred  eighty-five,  or  is  a
 neighborhood  preservation area as determined by the New York city plan-
 ning commission as of June first, nineteen hundred eighty-five, or is an
 area that was eligible for mortgage insurance provided by the  rehabili-
 tation  mortgage insurance corporation as of May first, nineteen hundred
 ninety-two or is an area receiving funding for a neighborhood  preserva-
 tion  project  pursuant to the neighborhood reinvestment corporation act
 (42 U.S.C. §§180 et seq.)  as of June first,  nineteen  hundred  eighty-
 five, as follows:
   a.  except  as otherwise provided herein there shall be full exemption
 from taxation during the [period of construction or the period of  three
 years  immediately  following  commencement  of  construction, whichever
 expires sooner] INITIAL CONSTRUCTION PERIOD, and  for  twenty-one  years
 following such period;
   b. followed by one year of exemption from eighty percent of such taxa-
 tion;
   c.  followed by one year of exemption from sixty percent of such taxa-
 tion;
   d. followed by one year of exemption from forty percent of such  taxa-
 tion;
   e. followed by one year of exemption from twenty percent of such taxa-
 tion.
   (B)  The benefits of this subparagraph shall not be available in areas
 made ineligible for the benefits of this section by a local law  enacted
 pursuant  to  paragraph  (i)  of THIS subdivision [two of this section],
 notwithstanding any exceptions to ineligibility contained in such  local
 law for certain types of projects.
   (C) Notwithstanding the provisions of item (A) or (D) of this subpara-
 graph,  in  the city of New York the benefits of this subparagraph shall
 not be available in the borough of Manhattan for tax lots  now  existing
 or  hereafter created south of or adjacent to either side of one hundred
 tenth street.
   (D) In addition to being available in the areas described in item  (A)
 of  this  subparagraph,  the  benefits  made  available pursuant to this
 subparagraph shall be available where:
   a. the construction is carried out with the substantial assistance  of
 grants,  loans  or  subsidies from any federal, state or local agency or
 instrumentality, or
   b. the local housing agency has imposed a requirement or has certified
 that twenty percent of the units be affordable to families  of  low  and
 moderate income.

 S. 3238                             5
 
   (E) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
 CONSTRUCTION  PERIOD,  IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
 FOR DWELLING PURPOSES.
   The following table shall illustrate the computation of the exemption:
 
                          CONSTRUCTION OF CERTAIN
                            MULTIPLE DWELLINGS
 
                                                   Exemption
 During INITIAL Construction PERIOD                100%
 (maximum three years)
 Following completion of [work] THE
 INITIAL CONSTRUCTION PERIOD
 Year:
  1 through 21                                     100%
 22                                                 80
 23                                                 60
 24                                                 40
 25                                                 20
 
   [(E)]  (F) A new multiple dwelling that is situated in (1) a neighbor-
 hood preservation program area as determined by the department of  hous-
 ing  preservation  and  development  as  of June first, nineteen hundred
 eighty-five, (2) a neighborhood preservation area as determined  by  the
 New  York  city  planning  commission as of June first, nineteen hundred
 eighty-five, (3) an  area  that  was  eligible  for  mortgage  insurance
 provided  by the rehabilitation mortgage insurance corporation as of May
 first, nineteen hundred ninety-two, or (4) an area receiving funding for
 a neighborhood preservation project pursuant to the  neighborhood  rein-
 vestment  corporation  act (42 U.S.C. §§ 8101 et seq.) as of June first,
 nineteen hundred eighty-five, shall not be  eligible  for  the  benefits
 available  pursuant  to  this  subparagraph  unless it complies with the
 provisions of subdivision seven of this section.
   (iv) (A) Unless excluded by local law, in the city of  New  York,  the
 benefits  of  this  subparagraph  shall  be  available in the borough of
 Manhattan for new multiple dwellings on tax lots now existing  or  here-
 after  created  south of or adjacent to either side of one hundred tenth
 street that commence construction after  July  first,  nineteen  hundred
 ninety-two  and on or before December thirty-first, two thousand fifteen
 provided, however, that such a  multiple  dwelling  receives  its  first
 temporary or permanent certificate of occupancy covering all residential
 areas  on  or  before  December thirty-first, two thousand nineteen, and
 solely for purposes of  determining  whether  this  clause  applies  and
 notwithstanding any local law to the contrary, "commence" shall mean the
 date  upon  which  excavation  and  construction of initial footings and
 foundations lawfully begins in good faith or, for  an  eligible  conver-
 sion,  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, only if:
   a.  the construction is carried out with the substantial assistance of
 grants, loans or subsidies from any federal, state or  local  agency  or
 instrumentality, or
   b. the local housing agency has imposed a requirement or has certified
 that  twenty  percent of the units are affordable to families of low and
 moderate income.

 S. 3238                             6
 
   (B) Such new multiple dwellings, except hotels, shall be  exempt  from
 taxation  for  local purposes, other than assessments for local improve-
 ments for the tax year or years  immediately  following  taxable  status
 dates  occurring  subsequent  to  the  commencement  and  prior  to  the
 completion  of  THE INITIAL construction PERIOD, but not to exceed three
 such tax years, and shall continue to be exempt from  such  taxation  in
 tax years immediately following the taxable status dates first occurring
 after the expiration of the exemption herein conferred during [such] THE
 INITIAL  construction [so long as used at the completion of construction
 for dwelling purposes] PERIOD,  AND  DURING  THE  EXTENDED  CONSTRUCTION
 PERIOD IF SUCH PERIOD IS NEEDED, for a period not to exceed twenty years
 in the aggregate, as follows:
   a.  except as otherwise provided herein, there shall be full exemption
 from taxation during the [period of construction or the period of  three
 years  immediately  following  commencement  of  construction, whichever
 expires sooner]  INITIAL  CONSTRUCTION  PERIOD,  and  for  twelve  years
 following such period;
   b.  followed  by  two  years  of exemption from eighty percent of such
 taxation;
   c. followed by two years of exemption from sixty percent of such taxa-
 tion;
   d. followed by two years of exemption from forty percent of such taxa-
 tion;
   e. followed by two years of exemption  from  twenty  percent  of  such
 taxation.
   (C) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
 CONSTRUCTION  PERIOD,  IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
 FOR DWELLING PURPOSES.
   The following table shall illustrate the computation of the exemption:
 
                          CONSTRUCTION OF CERTAIN
                            MULTIPLE DWELLINGS
 
 During [construction] INITIAL CONSTRUCTION
 PERIOD (maximum three years)                           Exemption 100%
 Following completion of [work year] THE INITIAL
 CONSTRUCTION PERIOD:
 YEAR
                   1 through 12                         100%
                     13-14                               80%
                     15-16                               60%
                     17-18                               40%
                     19-20                               20%
 
   § 3. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
 erty tax law, as amended by chapter 995 of the laws of 1981, is  amended
 to read as follows:
   (g)  [For]  NOTWITHSTANDING  ANYTHING TO THE CONTRARY CONTAINED IN ANY
 OTHER STATE OR LOCAL LAW, FOR purposes  of  this  section,  construction
 shall  be deemed "commenced" [when excavation or alteration has begun in
 good faith on the basis of approved construction plans]  UPON  THE  DATE
 THAT,  PURSUANT TO ANY PERMIT APPROVED BY A DEPARTMENT OF BUILDINGS: (I)
 A NEW METAL OR CONCRETE STRUCTURE THAT  SHALL  PERFORM  A  LOAD  BEARING
 FUNCTION  IS  INSTALLED AS PART OF A FOUNDATION; (II) AT LEAST ONE FULLY
 DRIVEN PILE OR CAISSON IS INSTALLED; OR (III) THE  ACTUAL  CONSTRUCTION,
 ALTERATION,  OR  IMPROVEMENT  OF  A  PRE-EXISTING  BUILDING OR STRUCTURE

 S. 3238                             7
 
 BEGINS IN A PROJECT THAT INCLUDES NEW RESIDENTIAL CONSTRUCTION  AND  THE
 CONCURRENT  CONVERSION,  ALTERATION  OR  IMPROVEMENT  OF  A PRE-EXISTING
 BUILDING OR STRUCTURE.  PROVIDED, HOWEVER, THAT WITH RESPECT TO SUBPARA-
 GRAPHS  (I),  (II) AND (III) OF THIS PARAGRAPH, THE CONSTRUCTION OF SUCH
 MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
   § 4. The opening paragraph and subparagraph (iv)  of  paragraph  a  of
 subdivision 3 of section 421-a of the real property tax law, the opening
 paragraph as amended by section 63-g of part A of chapter 20 of the laws
 of  2015  and subparagraph (iv) as amended by chapter 703 of the laws of
 1976 and such section as renumbered by chapter 110 of the laws of  1977,
 are amended to read as follows:
   [Application  forms  for  exemption  under this section shall be filed
 with the assessors between February first and March fifteenth and, based
 on the certification of the local housing agency as herein provided, the
 assessors shall certify to the collecting officer the amount of taxes to
 be abated.] If there be in a city of one million population  or  more  a
 department  of  housing  preservation and development, the term "housing
 agency" shall mean only such  department  of  housing  preservation  and
 development.  [No  such  application  shall be accepted by the assessors
 unless accompanied by a certificate of the local housing agency certify-
 ing the applicant's eligibility pursuant to subdivisions two and four of
 this section.] No  [such]  certification  of  eligibility  FOR  BENEFITS
 PURSUANT  TO  THIS  SECTION  shall be issued by the local housing agency
 until such agency determines the initial adjusted  monthly  rent  to  be
 paid  by  tenants residing in rental dwelling units contained within the
 multiple dwelling and the comparative adjusted monthly rent  that  would
 have  to  be paid by such tenants if no tax exemption were applicable as
 provided by this section.   The initial adjusted monthly  rent  will  be
 certified  by the local housing agency as the first rent for the subject
 dwelling units. A copy of such certification with respect to such  units
 shall be attached by the applicant to the first effective lease or occu-
 pancy  agreement.  The  initial  adjusted monthly rent shall reflect the
 full tax exemption benefits as approved by the agency.
   (iv) The adjusted monthly rent per room per month shall be  multiplied
 by  the  room  count of each rental dwelling unit to provide the initial
 adjusted monthly rent for such  dwelling  unit.  The  agency  may  allow
 adjustments  in  the  initial  adjusted  monthly rent for any particular
 dwelling units provided that the total of the initial  adjusted  monthly
 rents  for all of the rental dwelling units in a multiple dwelling shall
 not exceed the total expenses of such multiple dwelling.
   The agency shall determine the estimated comparative adjusted  monthly
 rent  that  would have to be paid if no tax exemption were applicable as
 provided by this section by adding to the adjusted monthly rent for each
 dwelling unit as hereinabove computed an amount equal to (a) the differ-
 ence between the projected real property taxes which would be levied  on
 the  multiple  dwelling and the land on which it is situated at the time
 OF estimated initial occupancy if no tax abatement  were  applicable  as
 provided  by this section and the projected real property taxes hereina-
 bove utilized in connection with the computation of total expenses;  (b)
 divided  by  the room count of the building as per this section; and (c)
 multiplied by the applicants approved room count of each  such  dwelling
 unit.
   The local housing agency may promulgate rules and regulations to carry
 out the provisions of this section, not inconsistent with the provisions
 hereof,  [and  may require a reasonable filing fee in an amount provided
 by such rules and regulations] INCLUDING, BUT NOT LIMITED TO, RULES  AND

 S. 3238                             8
 
 REGULATIONS  RELATING TO THE FILING FEE AUTHORIZED PURSUANT TO PARAGRAPH
 B OF SUBDIVISION FOUR OF THIS SECTION.
   § 5. Paragraph b of subdivision 4 of section 421-a of the real proper-
 ty  tax  law, as added by chapter 744 of the laws of 2004, is amended to
 read as follows:
   b. The local housing agency [may] SHALL require a filing  fee  not  to
 exceed  the  greater  of  (i)  four-tenths  of  one percent of the total
 project cost, or (ii) if the building will be owned as a cooperative  or
 condominium,  four-tenths  of  one  percent of the total project cost or
 four-tenths of one percent of the total project sell-out price stated in
 the last amendment to the offering  plan  accepted  for  filing  by  the
 attorney  general  of  the  state,  at the option of the applicant. Such
 total project cost or total project sell-out price shall  be  determined
 pursuant to rules promulgated by the local housing agency. Notwithstand-
 ing  the foregoing, the local housing agency may promulgate rules impos-
 ing an additional fee  if  an  application,  or  any  part  thereof,  or
 submission  in connection therewith, is defective and such defect delays
 the processing of such application or causes the local housing agency to
 expend additional resources in the processing of such application.
   § 6. Subparagraph (i) of paragraph (a) of  subdivision  6  of  section
 421-a  of the real property tax law, as added by chapter 110 of the laws
 of 2005, is amended to read as follows:
   (i) "Covered project." (A) A new building located  within  the  Green-
 point  -  Williamsburg waterfront exclusion area, (B) two or more build-
 ings which are part of one contiguous development entirely located with-
 in the Greenpoint - Williamsburg waterfront exclusion area, (C)  two  or
 more  buildings  which  are located within the Greenpoint - Williamsburg
 waterfront exclusion area and are part of a  single  development  parcel
 specifically  identified  in section [62-831] 62-931 of the local zoning
 resolution, or (D) where so authorized in writing by the  local  housing
 agency,  one or more buildings located within the Greenpoint - Williams-
 burg waterfront exclusion area and one or more buildings located outside
 the Greenpoint -  Williamsburg  waterfront  exclusion  area  but  within
 Community District Number One in the borough of Brooklyn. The cumulative
 number of affordable units located outside the Greenpoint - Williamsburg
 waterfront  exclusion  area  in all covered projects described in clause
 (D) of this subparagraph  shall  not  exceed  two  hundred.  A  building
 located  outside the Greenpoint - Williamsburg waterfront exclusion area
 which is part of a covered project  described  in  clause  (D)  of  this
 subparagraph  shall  not  contain  any  affordable units with respect to
 which an application pending before a governmental entity on [the effec-
 tive date of this subdivision] JUNE TWENTY-FIRST, TWO THOUSAND FIVE or a
 written agreement in effect on [the effective date of this  subdivision]
 JUNE  TWENTY-FIRST,  TWO  THOUSAND  FIVE provided for the development of
 such affordable units.
   § 7. Subdivision (c) of section 11-245 of the administrative  code  of
 the  city  of New York, as amended by local law number 42 of the city of
 New York for the year 2003, is amended to read as follows:
   (c) No benefits under section four hundred twenty-one-a  of  the  real
 property tax law shall be conferred for any construction commenced on or
 after  November twenty-ninth, nineteen hundred eighty-five of any multi-
 ple dwelling, or portion thereof, which is located within  any  district
 in the county of New York where a maximum base floor area ratio, as that
 term  is  defined  in  the  zoning resolution, of fifteen or greater was
 permitted as of right by provisions of  such  resolution  in  effect  on
 April  fourteenth,  nineteen hundred eighty-two; provided, however, that

 S. 3238                             9
 
 this limitation on benefits shall not apply  to  any  such  construction
 commenced  on  or after October first, nineteen hundred ninety-three and
 before December [thirty-first] TWENTY-EIGHTH, two thousand [seven] TWEN-
 TY-ONE.
   §  8.  Subdivision 8 of section 421-a of the real property tax law, as
 amended by section 63-m of part A of chapter 20 of the laws of 2015,  is
 amended to read as follows:
   8. (a) As used in this subdivision, the following terms shall have the
 following meanings:
   (i)  "Applicant"  means  an  applicant  for  benefits pursuant to this
 section, any successor to such applicant, or any  employer  of  building
 service  employees  for such applicant, including, but not limited to, a
 property management company or contractor.
   (ii) "Building service employee" means any  person  who  is  regularly
 employed  at a building who performs work in connection with the care or
 maintenance of such building. "Building service employee" includes,  but
 is  not  limited to, watchman, guard, doorman, building cleaner, porter,
 handyman, janitor, gardener, groundskeeper, elevator operator and start-
 er, and window cleaner, but shall not include persons  regularly  sched-
 uled to work fewer than eight hours per week in the building.
   (iii)  "CONSTRUCTION  EMPLOYEE" MEANS A LABORER, WORKER OR MECHANIC IN
 THE EMPLOY OF THE CONTRACTOR, SUBCONTRACTOR OR  OTHER  PERSON  DOING  OR
 CONTRACTING  TO  DO  THE WHOLE OR A PORTION OF THE CONSTRUCTION OF A NEW
 MULTIPLE DWELLING.
   (IV) "Fiscal officer" means the comptroller or other analogous officer
 in a city having a population of one million or more.
   (b) All building service employees employed  by  the  applicant  in  a
 building  whose  construction  commenced  on  or  after December twenty-
 eighth, two thousand seven shall receive the applicable prevailing  wage
 for  the duration of benefits pursuant to this section.  NOTWITHSTANDING
 ANY GENERAL, SPECIAL OR LOCAL LAW, OR JUDICIAL DECISION TO THE CONTRARY,
 FOR THE PURPOSES OF THIS SECTION SUCH CONSTRUCTION WHICH MAY INVOLVE THE
 EMPLOYMENT OF LABORERS, WORKERS OR  MECHANICS,  EXCEPT  AS  PROVIDED  IN
 PARAGRAPH  (D)  OF THIS SUBDIVISION, SHALL BE DEEMED PUBLIC WORK FOR THE
 PURPOSES OF ARTICLE EIGHT OF THE LABOR LAW AND ALL CONTRACTS AND SUBCON-
 TRACTS WHICH MAY INVOLVE THE EMPLOYMENT OF LABORERS, WORKERS OR  MECHAN-
 ICS SHALL BE ENFORCEABLE UNDER ARTICLE EIGHT OF THE LABOR LAW.
   (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  AND  CONSTRUCTION
 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 govern-
 mental 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 subdivision shall be regulated by the civil
 practice law and rules;

 S. 3238                            10
 
   (v) to make a classification by craft, trade or other generally recog-
 nized occupational  category  of  the  building  service  employees  AND
 CONSTRUCTION  EMPLOYEES  and  to  determine  whether  such work has been
 performed by the building service employees AND  CONSTRUCTION  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 OR CONSTRUCTION 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.
   (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 local housing agency.
   (e)  [Paragraph] FOR BUILDING SERVICE EMPLOYEES, PARAGRAPH (b) of this
 subdivision shall not be applicable to:
   (i) projects containing less than fifty dwelling units; or
   (ii) buildings where  the  local  housing  agency  certifies  that  at
 initial  occupancy  at  least  fifty  percent  of the dwelling units are
 affordable to individuals or families with a gross household  income  at
 or  below  one hundred twenty-five percent of the area median income and
 that any such units which  are  located  in  rental  buildings  will  be
 subject  to  restrictions to insure that they will remain affordable for
 the entire period during which they receive benefits under this section.
   (f) FOR CONSTRUCTION EMPLOYEES,  PARAGRAPH  (B)  OF  THIS  SUBDIVISION
 SHALL NOT BE APPLICABLE TO:
   (I) PROJECTS CONTAINING LESS THAN EIGHTY DWELLING UNITS; OR
   (II)  BUILDINGS  WHERE  THE  LOCAL  HOUSING  AGENCY  CERTIFIES THAT AT
 INITIAL OCCUPANCY AT LEAST FIFTY  PERCENT  OF  THE  DWELLING  UNITS  ARE
 AFFORDABLE  TO  INDIVIDUALS OR FAMILIES WITH A GROSS HOUSEHOLD INCOME AT
 OR BELOW ONE HUNDRED TWENTY-FIVE PERCENT OF THE AREA MEDIAN  INCOME  AND
 THAT  ANY  SUCH  UNITS  WHICH  ARE  LOCATED  IN RENTAL BUILDINGS WILL BE
 SUBJECT TO RESTRICTIONS TO INSURE THAT THEY WILL REMAIN  AFFORDABLE  FOR
 THE ENTIRE PERIOD DURING WHICH THEY RECEIVE BENEFITS UNDER THIS SECTION.
   (G) The local housing agency shall prescribe appropriate sanctions for
 failure to comply with the provisions of this subdivision.
   [(g)]  (H)  Solely  for purposes of paragraph (b) of this subdivision,
 construction shall be deemed  to  have  commenced  [when  excavation  or
 alteration has begun in good faith on the basis of approved construction
 plans]  UPON THE DATE THAT, PURSUANT TO ANY PERMIT APPROVED BY A DEPART-
 MENT OF BUILDINGS, (I) A NEW METAL  OR  CONCRETE  STRUCTURE  THAT  SHALL
 PERFORM  A  LOAD  BEARING FUNCTION IS INSTALLED AS PART OF A FOUNDATION,
 (II) AT LEAST ONE FULLY DRIVEN PILE OR CAISSON IS  INSTALLED,  OR  (III)
 THE  ACTUAL  CONSTRUCTION,  ALTERATION, OR IMPROVEMENT OF A PRE-EXISTING
 BUILDING OR STRUCTURE BEGINS IN A PROJECT THAT INCLUDES NEW  RESIDENTIAL
 CONSTRUCTION AND THE CONCURRENT CONVERSION, ALTERATION OR IMPROVEMENT OF
 A  PRE-EXISTING  BUILDING  OR  STRUCTURE.   PROVIDED, HOWEVER, THAT WITH
 RESPECT TO SUBPARAGRAPHS (I), (II) AND  (III)  OF  THIS  PARAGRAPH,  THE
 CONSTRUCTION OF SUCH MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
   [(h)]  (I)  The  eligibility  criteria  for benefits contained in this
 subdivision shall be in addition to those contained in any other law  or
 regulation.
   § 9. The New York city charter is amended by adding a new section 1807
 to read as follows:

 S. 3238                            11
 
   § 1807. ADDITIONAL FLOOR AREA.  ANY PROGRAM THAT ALLOWS FOR ADDITIONAL
 FLOOR  AREA  IN  EXCHANGE  FOR  THE CREATION OF AFFORDABLE HOUSING SHALL
 REQUIRE THAT THIRTY PERCENT OF ANY ADDITIONAL FLOOR  AREA  GENERATED  BY
 THE PROGRAM BE USED TO PROVIDE AFFORDABLE HOUSING.
   §  10.  The  real  property tax law is amended by adding a new section
 421-p to read as follows:
   § 421-P. EXEMPTION OF CERTAIN PRIVATE HOMES FROM LOCAL TAXATION.    1.
 FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A)  "COMMENCE  CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR DEPARTMENT
 OF THE CITY HAVING JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION  OF
 A  PRIVATE HOME AND SUCH WORK HAS BEGUN IN GOOD FAITH IN ACCORDANCE WITH
 SUCH PERMIT.
   (B) "COMPLETE CONSTRUCTION" SHALL MEAN THAT THE AGENCY  OR  DEPARTMENT
 OF  THE  CITY  HAVING  JURISDICTION  HAS ISSUED A TEMPORARY OR PERMANENT
 CERTIFICATE OF OCCUPANCY FOR ALL RESIDENTIAL AREAS OF THE PRIVATE HOME.
   (C) "ELIGIBLE PROJECT" SHALL MEAN A NEWLY  CONSTRUCTED  PRIVATE  HOME,
 INCLUDING  BOTH LAND AND IMPROVEMENTS, TO BE OCCUPIED AS A RESIDENCE FOR
 THE FIRST TIME, WHICH COMMENCES CONSTRUCTION ON OR AFTER JULY FIRST, TWO
 THOUSAND TWENTY AND ON OR BEFORE  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
 TWENTY-FOUR  AND  COMPLETES  CONSTRUCTION NO LATER THAN DECEMBER THIRTY-
 FIRST, TWO THOUSAND TWENTY-SIX,  AND  WHICH  IS  DESIGNED  AND  OCCUPIED
 EXCLUSIVELY FOR RESIDENTIAL PURPOSES.
   (D)  "EXEMPTION COMMENCEMENT DATE" SHALL MEAN THE FIRST TAXABLE STATUS
 DATE AFTER THE LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION  OR
 THE SALE TO THE INITIAL PURCHASER OR, IN THE CASE OF A PRIVATE HOME IN A
 CONDOMINIUM  FORM  OF OWNERSHIP, THE FIRST TAXABLE STATUS DATE AFTER THE
 LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR THE SALE TO THE
 FIRST INITIAL PURCHASER OF A CONDOMINIUM DWELLING UNIT IN  SUCH  PRIVATE
 HOME.
   (E)  "INITIAL  PURCHASER"  SHALL  MEAN  THE FIRST PURCHASER OF A NEWLY
 CONSTRUCTED PRIVATE HOME OR, IN THE CASE OF A PRIVATE HOME IN  A  CONDO-
 MINIUM  FORM  OF OWNERSHIP, THE FIRST PURCHASER OF EACH DWELLING UNIT IN
 SUCH NEWLY CONSTRUCTED PRIVATE HOME.
   (F) "LOCAL HOUSING AGENCY" SHALL MEAN AN "AGENCY" AS DEFINED  PURSUANT
 TO SECTION SIX HUNDRED NINETY-TWO OF THE GENERAL MUNICIPAL LAW.
   (G)  "PURCHASE  PRICE" SHALL MEAN THE ACTUAL PURCHASE PRICE TO BE PAID
 FOR THE PRIVATE HOME BY THE INITIAL PURCHASER.
   (H) "MAXIMUM PURCHASE PRICE" SHALL MEAN  THE  PURCHASE  PRICE  OF  THE
 PRIVATE  HOME  WHICH,  IF  EXCEEDED,  WILL  MAKE ANY EXEMPTION HEREUNDER
 UNAVAILABLE.
   (I) "MAXIMUM EXEMPTION AMOUNT" SHALL MEAN THE PORTION OF THE  PURCHASE
 PRICE TO BE EXEMPTED FROM TAXATION OF: (I) SIX HUNDRED SEVENTY-ONE THOU-
 SAND DOLLARS IN THE CASE OF A PRIVATE HOME CONTAINING ONE DWELLING UNIT,
 (II) SEVEN HUNDRED FIFTY-FIVE THOUSAND FIVE HUNDRED FORTY DOLLARS IN THE
 CASE OF A PRIVATE HOME CONTAINING TWO DWELLING UNITS, (III) NINE HUNDRED
 FOURTEEN  THOUSAND  SEVEN HUNDRED FIFTY DOLLARS IN THE CASE OF A PRIVATE
 HOME CONTAINING THREE DWELLING UNITS, AND  (IV)  FOUR  HUNDRED  THOUSAND
 DOLLARS  FOR EACH INDIVIDUAL CONDOMINIUM UNIT IN THE CASE OF CONDOMINIUM
 FORM OF OWNERSHIP  IN  A  PRIVATE  HOME.  THE  MAXIMUM  PURCHASE  PRICES
 PROVIDED  IN  SUBPARAGRAPHS  (I), (II), (III) AND (IV) OF THIS PARAGRAPH
 SHALL BE THE LIMIT FOR THE APPLICATION OF ANY  EXEMPTION  FROM  TAXATION
 UNDER  THIS  SECTION.  NO EXEMPTION SHALL BE AVAILABLE WHERE THE MAXIMUM
 PURCHASE PRICE EXEMPTION IS IN EXCESS OF  NINE  HUNDRED  FIFTY  THOUSAND
 DOLLARS  FOR  A  ONE,  TWO, OR THREE FAMILY PRIVATE HOME OR FOUR HUNDRED
 THOUSAND DOLLARS FOR AN INDIVIDUAL CONDOMINIUM UNIT.

 S. 3238                            12

   (J) "MULTIPLE DWELLING" SHALL MEAN  A  MULTIPLE  DWELLING  WITHIN  THE
 MEANING OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   (K)  "PRIVATE  HOME"  SHALL MEAN AN OWNER OCCUPIED PRIVATE OR MULTIPLE
 DWELLING CONTAINING NOT MORE THAN THREE DWELLING UNITS, AS INDICATED  ON
 THE CERTIFICATE OF OCCUPANCY FOR SUCH STRUCTURE.
   2.  (A)  WITHIN  A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AN
 ELIGIBLE PROJECT SHALL BE EXEMPT FROM ALL  LOCAL  AND  MUNICIPAL  TAXES,
 OTHER  THAN  ASSESSMENTS  FOR LOCAL IMPROVEMENTS, DURING THE TAX YEAR OR
 YEARS NEXT FOLLOWING THE EXEMPTION COMMENCEMENT DATE  AS  FOLLOWS:  WITH
 RESPECT  TO  PRIVATE HOMES CONTAINING LESS THAN FOUR DWELLING UNITS, TWO
 YEARS OF EXEMPTION  FROM  ALL  SUCH  TAXES;  FOLLOWED  BY  ONE  YEAR  OF
 EXEMPTION  FROM SEVENTY-FIVE PERCENT OF SUCH TAXES; FOLLOWED BY ONE YEAR
 OF EXEMPTION FROM SIXTY-TWO AND ONE-HALF PERCENT OF SUCH TAXES; FOLLOWED
 BY ONE YEAR OF EXEMPTION FROM FIFTY PERCENT OF SUCH TAXES;  FOLLOWED  BY
 ONE  YEAR  OF  EXEMPTION  FROM THIRTY-SEVEN AND ONE-HALF PERCENT OF SUCH
 TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION  FROM  TWENTY-FIVE  PERCENT  OF
 SUCH  TAXES;  AND FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWELVE AND ONE-
 HALF PERCENT OF SUCH TAXES.
   (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION,  EXEMPTION FROM LOCAL AND MUNICIPAL TAXES UNDER THIS SECTION SHALL
 NOT BE AVAILABLE TO THE TAX LOT (LAND AND  IMPROVEMENTS)  UPON  WHICH  A
 PRIVATE  HOME  IS  CONSTRUCTED  IF ANY PORTION OF SUCH TAX LOT (LAND AND
 IMPROVEMENTS): (I) IS EXEMPT FROM LOCAL AND MUNICIPAL  TAXES  UNDER  ANY
 OTHER  LAW;  OR  (II)  CONTAINS  A PRIVATE HOME THAT EXCEEDS THE MAXIMUM
 PURCHASE PRICE OR AN INDIVIDUAL CONDOMINIUM UNIT THAT EXCEEDS A PURCHASE
 PRICE OF FOUR HUNDRED THOUSAND DOLLARS.
   (C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION, THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH THE PRIVATE HOME IS
 CONSTRUCTED  SHALL  AT ALL TIMES BE SUBJECT TO LOCAL AND MUNICIPAL TAXES
 IN AN AMOUNT NOT LESS THAN THE AMOUNT OF LOCAL AND MUNICIPAL TAXES  THAT
 WOULD  BE  PAYABLE THEREON BASED UPON THE ASSESSED VALUATION OF THE LAND
 APPEARING ON THE ASSESSMENT ROLL IN THE FIRST YEAR AFTER  COMPLETION  OF
 CONSTRUCTION.
   3. (A) BASED ON THE CERTIFICATION OF THE LOCAL HOUSING AGENCY PURSUANT
 TO  THIS  SECTION  CERTIFYING ELIGIBILITY FOR EXEMPTION PURSUANT TO THIS
 SECTION, THE DEPARTMENT OF FINANCE OF THE CITY OF NEW YORK SHALL  IMPLE-
 MENT THE AMOUNT OF EXEMPTION FROM LOCAL AND MUNICIPAL TAXES.
   (B)  THE  LOCAL HOUSING AGENCY MAY PROMULGATE RULES AND REGULATIONS TO
 CARRY OUT THE PROVISIONS OF THIS SECTION AND MAY REQUIRE  PAYMENT  OF  A
 NON-REFUNDABLE  FILING  FEE  IN  THE  AMOUNT  OF TWO HUNDRED DOLLARS PER
 DWELLING UNIT FOR EACH APPLICATION FOR TAX EXEMPTION  PURSUANT  TO  THIS
 SECTION.
   (C)  UPON  A  FINDING BY THE LOCAL HOUSING AGENCY OR BY ANOTHER AGENCY
 DESIGNATED BY SUCH LOCAL HOUSING AGENCY THAT A PRIVATE HOME IS NOT BEING
 USED FOR RESIDENTIAL PURPOSES, IS THE SUBJECT  OF  A  VIOLATION  FOR  AN
 ILLEGAL  OCCUPANCY, OR NOT OWNER OCCUPIED, EXEMPTION FROM TAXATION UNDER
 THIS  SECTION  SHALL  BE  REVOKED  AND  SHALL  TERMINATE  PROSPECTIVELY;
 PROVIDED,  HOWEVER,  THAT IN THE CASE OF AN ILLEGAL OCCUPANCY, THE OWNER
 SHALL REPAY ALL TAXES, WITH INTEREST, FROM WHICH SUCH PRIVATE  HOME  WAS
 EXEMPTED AND SUCH AMOUNT, IF UNPAID, SHALL BECOME A TAX LIEN AGAINST THE
 PROPERTY.
   § 11. This act shall take effect immediately.