S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4709
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in relation to authorizing  a
   tax  exemption and a tax abatement for alterations and improvements to
   multiple dwellings for purposes of preserving habitability in afforda-
   ble housing
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  489  of  the real property tax law is amended by
 adding a new subdivision 21 to read as follows:
   21. AFFORDABLE HOUSING REHABILITATION PROGRAM.  (A)  DEFINITIONS.  FOR
 THE PURPOSES OF THIS SUBDIVISION:
   (1) "AFFORDABLE RENT" SHALL MEAN THE MAXIMUM RENT WITHIN THE MARKETING
 BAND  THAT  IS  ALLOWED  FOR  AN  AFFORDABLE RENTAL UNIT AS SUCH RENT IS
 ESTABLISHED BY THE LOCAL HOUSING AGENCY.
   (2) "AFFORDABLE RENTAL UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE
 RENTAL BUILDING THAT:
   (A) IS AFFORDABLE TO INDIVIDUALS OR FAMILIES  WHOSE  HOUSEHOLD  INCOME
 DOES  NOT  EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR
 FAMILY SIZE; AND
   (B) UPON  EACH  SUBSEQUENT  RENTAL  FOLLOWING  A  VACANCY  DURING  THE
 RESTRICTION PERIOD, IS RENTED AT OR BELOW THE APPLICABLE AFFORDABLE RENT
 AND  OCCUPIED BY AN INDIVIDUAL OR FAMILY WHOSE HOUSEHOLD INCOME DOES NOT
 EXCEED EIGHTY PERCENT OF THE AREA MEDIAN  INCOME,  ADJUSTED  FOR  FAMILY
 SIZE,  AT  THE TIME THAT SUCH HOUSEHOLD INITIALLY OCCUPIES SUCH DWELLING
 UNIT, PROVIDED THAT NOTHING IN THIS SUBDIVISION SHALL PROHIBIT OCCUPANCY
 BY INDIVIDUALS OR FAMILIES WHOSE HOUSEHOLD INCOME IS  LESS  THAN  EIGHTY
 PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, NOR PROHIB-
 IT  THE  OWNER  FROM REQUIRING OCCUPANCY BY INDIVIDUALS OR FAMILIES WITH
 SUCH LOWER HOUSEHOLD INCOME.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08932-01-3
 S. 4709                             2
              

 
   (3) "CERTIFICATE OF ELIGIBILITY AND  REASONABLE  COST"  SHALL  MEAN  A
 DOCUMENT  ISSUED  BY  THE  LOCAL  HOUSING AGENCY THAT ESTABLISHES THAT A
 PROPERTY IS ELIGIBLE FOR REHABILITATION PROGRAM BENEFITS AND SETS  FORTH
 THE  CERTIFIED  REASONABLE  COST  OF THE ELIGIBLE CONSTRUCTION FOR WHICH
 SUCH BENEFITS SHALL BE RECEIVED.
   (4)  "CERTIFIED REASONABLE COST SCHEDULE" SHALL MEAN A TABLE PROVIDING
 MAXIMUM DOLLAR LIMITS FOR SPECIFIED ALTERATIONS AND IMPROVEMENTS, ESTAB-
 LISHED, AND UPDATED AS NECESSARY, BY THE LOCAL HOUSING AGENCY.
   (5) "CHECKLIST" SHALL MEAN A DOCUMENT THAT THE  LOCAL  HOUSING  AGENCY
 ISSUES REQUESTING ADDITIONAL INFORMATION OR DOCUMENTATION THAT IS NECES-
 SARY  FOR  FURTHER  ASSESSMENT  OF  AN  APPLICATION FOR A CERTIFICATE OF
 ELIGIBILITY AND REASONABLE COST WHERE  SUCH  APPLICATION  CONTAINED  ALL
 INFORMATION AND DOCUMENTATION REQUIRED AT THE INITIAL FILING.
   (6)   "COMMENCEMENT   DATE"  SHALL  MEAN,  WITH  RESPECT  TO  ELIGIBLE
 CONSTRUCTION, THE DATE ON WHICH ANY PHYSICAL  OPERATION  UNDERTAKEN  FOR
 THE PURPOSE OF PERFORMING SUCH ELIGIBLE CONSTRUCTION LAWFULLY BEGINS.
   (7)   "COMPLETION   DATE"   SHALL   MEAN,  WITH  RESPECT  TO  ELIGIBLE
 CONSTRUCTION, THE DATE ON WHICH:
   (A) EVERY PHYSICAL OPERATION UNDERTAKEN FOR THE PURPOSE OF ALL  ELIGI-
 BLE CONSTRUCTION HAS CONCLUDED; AND
   (B)  ALL SUCH ELIGIBLE CONSTRUCTION HAS BEEN COMPLETED TO A REASONABLE
 AND CUSTOMARY STANDARD THAT RENDERS SUCH ELIGIBLE  CONSTRUCTION  CAPABLE
 OF  USE  FOR  THE  PURPOSE  FOR  WHICH  SUCH  ELIGIBLE  CONSTRUCTION WAS
 INTENDED.
   (8) "DWELLING UNIT" SHALL MEAN  ANY  RESIDENTIAL  ACCOMMODATION  IN  A
 CLASS A MULTIPLE DWELLING THAT:
   (A)  IS  ARRANGED,  DESIGNED,  USED OR INTENDED FOR USE BY ONE OR MORE
 PERSONS LIVING TOGETHER AND MAINTAINING A COMMON HOUSEHOLD;
   (B) CONTAINS AT LEAST ONE ROOM; AND
   (C) CONTAINS WITHIN SUCH ACCOMMODATION  LAWFUL  SANITARY  AND  KITCHEN
 FACILITIES RESERVED FOR ITS OCCUPANTS.
   (9)  "ELIGIBLE  BUILDING"  SHALL  MEAN AN ELIGIBLE RENTAL BUILDING, AN
 ELIGIBLE HOMEOWNERSHIP BUILDING, OR AN ELIGIBLE REGULATED  HOMEOWNERSHIP
 BUILDING,  PROVIDED  THAT  SUCH BUILDING CONTAINS THREE OR MORE DWELLING
 UNITS.
   (10) "ELIGIBLE CONSTRUCTION" SHALL MEAN ALTERATIONS OR IMPROVEMENTS TO
 AN ELIGIBLE BUILDING THAT:
   (A) ARE SPECIFICALLY IDENTIFIED ON THE CERTIFIED REASONABLE COST SCHE-
 DULE;
   (B) MEET THE MINIMUM SCOPE OF WORK THRESHOLD;
   (C) HAVE A COMPLETION DATE THAT IS AFTER JUNE TWENTY-NINTH, TWO  THOU-
 SAND TWENTY-TWO AND PRIOR TO JUNE THIRTIETH, TWO THOUSAND TWENTY-SIX AND
 THAT IS NOT MORE THAN THIRTY MONTHS AFTER THEIR COMMENCEMENT DATE; AND
   (D) ARE NOT ATTRIBUTABLE TO ANY INCREASED CUBIC CONTENT IN SUCH ELIGI-
 BLE BUILDING.
   (11) "ELIGIBLE HOMEOWNERSHIP BUILDING" SHALL MEAN AN EXISTING BUILDING
 THAT:
   (A)  IS A CLASS A MULTIPLE DWELLING OPERATED AS CONDOMINIUM OR COOPER-
 ATIVE HOUSING;
   (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND
   (C) HAS AN AVERAGE ASSESSED VALUATION, INCLUDING THE VALUATION OF  THE
 LAND,  THAT  AS  OF THE COMMENCEMENT DATE DOES NOT EXCEED THE APPLICABLE
 HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION.
   (12) "ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING" SHALL MEAN AN  EXIST-
 ING  BUILDING  THAT IS A CLASS A MULTIPLE DWELLING OWNED AND OPERATED BY
 EITHER:
 S. 4709                             3
 
   (A) A MUTUAL COMPANY THAT CONTINUES TO BE ORGANIZED AND OPERATED AS  A
 MUTUAL  COMPANY  AND THAT HAS ENTERED INTO AND RECORDED A MUTUAL COMPANY
 REGULATORY AGREEMENT; OR
   (B)  A MUTUAL REDEVELOPMENT COMPANY THAT CONTINUES TO BE ORGANIZED AND
 OPERATED AS A MUTUAL REDEVELOPMENT COMPANY AND THAT HAS ENTERED INTO AND
 RECORDED A MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT.
   (13) "ELIGIBLE RENTAL BUILDING" SHALL MEAN AN EXISTING BUILDING THAT:
   (A) IS A CLASS A MULTIPLE DWELLING IN WHICH ALL OF THE DWELLING  UNITS
 ARE OPERATED AS RENTAL HOUSING;
   (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND
   (C) SATISFIES ONE OF THE FOLLOWING CONDITIONS:
   (I) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH BUILDING
 ARE AFFORDABLE RENTAL UNITS;
   (II)  SUCH  BUILDING IS OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING
 COMPANY; OR
   (III) SUCH BUILDING  IS  THE  RECIPIENT  OF  SUBSTANTIAL  GOVERNMENTAL
 ASSISTANCE.
   (14) "EXISTING BUILDING" SHALL MEAN AN ENCLOSED STRUCTURE WHICH:
   (A) IS PERMANENTLY AFFIXED TO THE LAND;
   (B) HAS ONE OR MORE FLOORS AND A ROOF;
   (C) IS BOUNDED BY WALLS;
   (D) HAS AT LEAST ONE PRINCIPAL ENTRANCE UTILIZED FOR DAY-TO-DAY PEDES-
 TRIAN INGRESS AND EGRESS;
   (E)  HAS  A CERTIFICATE OF OCCUPANCY OR EQUIVALENT DOCUMENT THAT IS IN
 EFFECT PRIOR TO THE COMMENCEMENT DATE; AND
   (F) EXCLUSIVE OF THE LAND, HAS AN ASSESSED VALUATION OF MORE THAN  ONE
 THOUSAND DOLLARS FOR THE FISCAL YEAR IMMEDIATELY PRECEDING THE COMMENCE-
 MENT DATE.
   (15) "HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION" SHALL MEAN:
   (A)  FOR  THE  FINAL  ASSESSMENT  ROLL TO BE COMPLETED IN TWO THOUSAND
 TWENTY-TWO,  AN  AVERAGE  ASSESSED  VALUATION  OF  THIRTY-FIVE  THOUSAND
 DOLLARS PER DWELLING UNIT.
   (B)  FOR  THE  FINAL  ASSESSMENT  ROLL TO BE COMPLETED IN TWO THOUSAND
 TWENTY-THREE, AN AVERAGE  ASSESSED  VALUATION  OF  THIRTY-FIVE  THOUSAND
 DOLLARS  PER  DWELLING  UNIT  INCREASED BY THE COST-OF-LIVING ADJUSTMENT
 PERCENTAGE OF TWO THOUSAND TWENTY-THREE. FOR THE PURPOSES OF THIS COMPU-
 TATION, THE COST-OF-LIVING ADJUSTMENT PERCENTAGE OF TWO  THOUSAND  TWEN-
 TY-THREE  SHALL BE EQUAL TO THE "APPLICABLE INCREASE PERCENTAGE" USED BY
 THE UNITED STATES COMMISSIONER  OF  SOCIAL  SECURITY  TO  DETERMINE  THE
 MONTHLY SOCIAL SECURITY BENEFITS PAYABLE IN TWO THOUSAND TWENTY-THREE TO
 INDIVIDUALS,  AS  PROVIDED  BY  SUBSECTION  (I)  OF SECTION FOUR HUNDRED
 FIFTEEN OF TITLE FORTY-TWO OF THE UNITED STATES CODE.
   (C) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN EACH YEAR AFTER  TWO
 THOUSAND  TWENTY-THREE,  AN AVERAGE ASSESSED VALUATION DOLLAR AMOUNT PER
 DWELLING UNIT COMPUTED BY INCREASING THE HOMEOWNERSHIP AVERAGE  ASSESSED
 VALUATION  LIMITATION APPLICABLE FOR THE FINAL ASSESSMENT ROLL COMPLETED
 IN THE PREVIOUS CALENDAR  YEAR  BY  THE  NEW  COST-OF-LIVING  ADJUSTMENT
 PERCENTAGE. FOR THE PURPOSES OF THIS COMPUTATION, THE NEW COST-OF-LIVING
 ADJUSTMENT  PERCENTAGE  SHALL  BE  EQUAL  TO  THE  "APPLICABLE  INCREASE
 PERCENTAGE" USED BY THE UNITED STATES COMMISSIONER OF SOCIAL SECURITY TO
 DETERMINE THE MONTHLY SOCIAL SECURITY BENEFITS PAYABLE IN SUCH  CALENDAR
 YEAR  TO  INDIVIDUALS,  AS  PROVIDED  IN  SUBSECTION (I) OF SECTION FOUR
 HUNDRED FIFTEEN OF TITLE FORTY-TWO OF THE UNITED  STATES  CODE.  IN  ANY
 YEAR  FOR  WHICH  THERE  IS  NO  APPLICABLE INCREASE PERCENTAGE DUE TO A
 GENERAL  BENEFIT  INCREASE  AS  DEFINED  BY  PARAGRAPH  THREE  OF   SUCH
 SUBSECTION  (I),  THE APPLICABLE INCREASE PERCENTAGE FOR PURPOSES OF THE
 S. 4709                             4
 
 COMPUTATION REQUIRED BY THIS  DEFINITION  SHALL  BE  DEEMED  TO  BE  THE
 PERCENTAGE WHICH WOULD HAVE YIELDED THAT GENERAL BENEFIT INCREASE.
   (D)  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SUBDI-
 VISION, THE HOMEOWNERSHIP  AVERAGE  ASSESSED  VALUATION  LIMITATION  PER
 DWELLING UNIT SHALL NOT AT ANY TIME EXCEED FORTY THOUSAND DOLLARS.
   (16)  "LIMITED-PROFIT  HOUSING COMPANY" SHALL HAVE THE SAME MEANING AS
 "COMPANY" SET FORTH IN SECTION TWELVE OF  THE  PRIVATE  HOUSING  FINANCE
 LAW.
   (17)  "MARKET  RENTAL  UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE
 RENTAL BUILDING OTHER THAN AN AFFORDABLE RENTAL UNIT.
   (18) "MARKETING BAND" SHALL MEAN MAXIMUM  RENT  AMOUNTS  RANGING  FROM
 TWENTY PERCENT OF EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR
 FAMILY  SIZE,  TO  THIRTY  PERCENT  OF EIGHTY PERCENT OF THE AREA MEDIAN
 INCOME, ADJUSTED FOR FAMILY SIZE.
   (19) "MINIMUM SCOPE OF WORK THRESHOLD" SHALL MEAN A  TOTAL  AMOUNT  OF
 CERTIFIED  REASONABLE  COST  ESTABLISHED BY RULES AND REGULATIONS OF THE
 LOCAL HOUSING AGENCY, PROVIDED THAT SUCH AMOUNT SHALL BE  NO  LESS  THAN
 ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH DWELLING UNIT IN EXISTENCE ON
 THE COMPLETION DATE.
   (20)  "MULTIPLE  DWELLING" SHALL HAVE THE MEANING SET FORTH IN SECTION
 FOUR OF THE MULTIPLE DWELLING LAW.
   (21) "MUTUAL COMPANY" SHALL HAVE THE  MEANING  SET  FORTH  IN  SECTION
 TWELVE OF THE PRIVATE HOUSING FINANCE LAW.
   (22)  "MUTUAL  COMPANY  REGULATORY AGREEMENT" SHALL MEAN A BINDING AND
 IRREVOCABLE AGREEMENT BETWEEN A MUTUAL COMPANY AND THE  COMMISSIONER  OF
 HOUSING,  THE MUTUAL COMPANY SUPERVISING AGENCY, THE NEW YORK CITY HOUS-
 ING DEVELOPMENT CORPORATION, OR THE NEW YORK STATE HOUSING FINANCE AGEN-
 CY PROHIBITING THE DISSOLUTION OR RECONSTITUTION OF SUCH MUTUAL  COMPANY
 PURSUANT  TO  SECTION THIRTY-FIVE OF THE PRIVATE HOUSING FINANCE LAW FOR
 NOT LESS THAN FIFTEEN YEARS  FROM  THE  COMMENCEMENT  OF  REHABILITATION
 PROGRAM  BENEFITS  FOR  THE EXISTING BUILDING OWNED AND OPERATED BY SUCH
 MUTUAL COMPANY.
   (23) "MUTUAL COMPANY SUPERVISING AGENCY" SHALL HAVE THE SAME  MEANING,
 WITH RESPECT TO ANY MUTUAL COMPANY, AS "SUPERVISING AGENCY" SET FORTH IN
 SECTION TWO OF THE PRIVATE HOUSING FINANCE LAW.
   (24)  "MUTUAL  REDEVELOPMENT  COMPANY"  SHALL HAVE THE SAME MEANING AS
 "MUTUAL" WHEN APPLIED TO A REDEVELOPMENT COMPANY AS SET FORTH IN SECTION
 ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW.
   (25) "MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT" SHALL MEAN  A
 BINDING AND IRREVOCABLE AGREEMENT BETWEEN A MUTUAL REDEVELOPMENT COMPANY
 AND  THE  COMMISSIONER OF HOUSING, THE REDEVELOPMENT COMPANY SUPERVISING
 AGENCY, THE NEW YORK CITY HOUSING DEVELOPMENT CORPORATION,  OR  THE  NEW
 YORK  STATE HOUSING FINANCE AGENCY PROHIBITING THE DISSOLUTION OR RECON-
 STITUTION OF SUCH MUTUAL REDEVELOPMENT COMPANY PURSUANT TO  SECTION  ONE
 HUNDRED TWENTY-THREE OF THE PRIVATE HOUSING FINANCE LAW UNTIL THE EARLI-
 ER OF: (A) FIFTEEN YEARS FROM THE COMMENCEMENT OF REHABILITATION PROGRAM
 BENEFITS  FOR  THE  EXISTING  BUILDING OWNED AND OPERATED BY SUCH MUTUAL
 REDEVELOPMENT COMPANY; OR (B) THE EXPIRATION OF ANY TAX EXEMPTION GRANT-
 ED TO SUCH MUTUAL REDEVELOPMENT COMPANY PURSUANT TO SECTION ONE  HUNDRED
 TWENTY-FIVE OF THE PRIVATE HOUSING FINANCE LAW.
   (26)  "REDEVELOPMENT  COMPANY"  SHALL  HAVE  THE  MEANING SET FORTH IN
 SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW
   (27) "REDEVELOPMENT COMPANY SUPERVISING AGENCY" SHALL  HAVE  THE  SAME
 MEANING,  WITH  RESPECT  TO  ANY  REDEVELOPMENT COMPANY, AS "SUPERVISING
 AGENCY" SET FORTH IN SECTION ONE HUNDRED  TWO  OF  THE  PRIVATE  HOUSING
 FINANCE LAW.
 S. 4709                             5
 
   (28)  "REHABILITATION  PROGRAM  BENEFITS" SHALL MEAN EXEMPTION FROM OR
 ABATEMENT OF REAL PROPERTY TAXES PURSUANT TO THIS SUBDIVISION.
   (29) "RENT REGULATION" SHALL MEAN, COLLECTIVELY, THE EMERGENCY HOUSING
 RENT  CONTROL LAW, ANY LOCAL LAW ENACTED PURSUANT TO THE LOCAL EMERGENCY
 HOUSING RENT CONTROL ACT, THE RENT STABILIZATION LAW OF NINETEEN HUNDRED
 SIXTY-NINE, THE  RENT  STABILIZATION  CODE,  AND  THE  EMERGENCY  TENANT
 PROTECTION  ACT  OF  NINETEEN  SEVENTY-FOUR,  ALL AS IN EFFECT AS OF THE
 EFFECTIVE DATE OF THIS SUBDIVISION, OR AS ANY SUCH  STATUTE  IS  AMENDED
 THEREAFTER, TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESS-
 ING SUBSTANTIALLY THE SAME SUBJECT MATTER.
   (30)  "RESTRICTION PERIOD" SHALL MEAN, NOTWITHSTANDING ANY TERMINATION
 OR REVOCATION OF REHABILITATION PROGRAM BENEFITS  PRIOR  TO  THE  PERIOD
 DESCRIBED IN CLAUSE (A) OR (B) OF THIS SUBPARAGRAPH, THE FOLLOWING:
   (A)  THE  PERIOD  COMMENCING  ON  THE RESTRICTIVE DECLARATION DATE AND
 EXPIRING ON THE FIFTEENTH ANNIVERSARY THEREOF, OR SUCH ADDITIONAL PERIOD
 OF TIME AS MAY BE IMPOSED PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH SIX  OF
 PARAGRAPH (F) OF THIS SUBDIVISION; OR
   (B)  FOR  AN  EXEMPTION GRANTED PURSUANT TO CLAUSE (B) OF SUBPARAGRAPH
 ONE OF PARAGRAPH (B) OF THIS SUBDIVISION, THE PERIOD COMMENCING UPON THE
 RESTRICTIVE DECLARATION DATE AND EXPIRING ON THE DATE OF THE  EXPIRATION
 OF  SUCH  EXEMPTION, OR SUCH ADDITIONAL PERIOD OF TIME AS MAY BE IMPOSED
 PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH SIX  OF  PARAGRAPH  (F)  OF  THIS
 SUBDIVISION.
   (31) "RESTRICTIVE DECLARATION" SHALL MEAN THE DOCUMENT EXECUTED BY ALL
 PARTIES IN INTEREST TO AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED
 AND  OPERATED  BY  A LIMITED-PROFIT HOUSING COMPANY, WHICH PROVIDES THAT
 SUCH ELIGIBLE RENTAL BUILDING SHALL COMPLY WITH THE APPLICABLE  REQUIRE-
 MENTS  OF  THIS SUBDIVISION, ANY LOCAL LAW OR ORDINANCE ENACTED PURSUANT
 TO THIS SUBDIVISION, AND ANY RULES AND REGULATIONS OF THE LOCAL  HOUSING
 AGENCY.
   (32)  "RESTRICTIVE  DECLARATION DATE" SHALL MEAN THE DATE UPON WHICH A
 RESTRICTIVE DECLARATION IS RECORDED AND EFFECTIVE  AGAINST  AN  ELIGIBLE
 RENTAL  BUILDING,  OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT
 HOUSING COMPANY.
   (33) "SUBSTANTIAL GOVERNMENTAL ASSISTANCE" SHALL MEAN  GRANTS,  LOANS,
 OR  SUBSIDIES  FROM THE LOCAL HOUSING AGENCY IN FURTHERANCE OF A PROGRAM
 FOR THE DEVELOPMENT OF AFFORDABLE HOUSING PROVIDED IN ACCORDANCE WITH  A
 REGULATORY AGREEMENT ENTERED INTO WITH SUCH LOCAL HOUSING AGENCY THAT IS
 IN  EFFECT AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIFICATE OF
 ELIGIBILITY AND REASONABLE COST.
   (34) "SUBSTANTIAL INTEREST" SHALL MEAN AN OWNERSHIP  INTEREST  OF  TEN
 PERCENT OR MORE.
   (B) EXEMPTION.  (1) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER SUBDI-
 VISION  OF  THIS  SECTION OR OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE
 CONTRARY, ANY CITY TO WHICH THE MULTIPLE  DWELLING  LAW  IS  APPLICABLE,
 ACTING  THROUGH ITS LOCAL LEGISLATIVE BODY OR OTHER GOVERNING AGENCY, IS
 HEREBY AUTHORIZED AND EMPOWERED, TO AND INCLUDING  JUNE  THIRTIETH,  TWO
 THOUSAND  TWENTY-FIVE,  TO  ADOPT  AND  AMEND  LOCAL  LAWS OR ORDINANCES
 PROVIDING THAT:
   (A) AN ELIGIBLE RENTAL BUILDING IN  WHICH  ELIGIBLE  CONSTRUCTION  HAS
 BEEN  COMPLETED,  AND  WHICH IS NOT THE RECIPIENT OF SUBSTANTIAL GOVERN-
 MENTAL ASSISTANCE, SHALL BE EXEMPT FROM REAL PROPERTY TAXATION FOR LOCAL
 PURPOSES AS PROVIDED HEREIN EQUAL TO FIVE PERCENT OF THE ASSESSED  VALU-
 ATION OF SUCH BUILDING AS OF THE COMMENCEMENT DATE;
   (B)  AN  ELIGIBLE  RENTAL  BUILDING IN WHICH ELIGIBLE CONSTRUCTION HAS
 BEEN COMPLETED, AND WHICH IS THE RECIPIENT OF  SUBSTANTIAL  GOVERNMENTAL
 S. 4709                             6

 ASSISTANCE,  SHALL  BE  EXEMPT  FROM  REAL  PROPERTY  TAXATION FOR LOCAL
 PURPOSES AS PROVIDED HEREIN EQUAL TO FIFTEEN  PERCENT  OF  THE  ASSESSED
 VALUATION OF SUCH BUILDING AS OF THE COMMENCEMENT DATE; AND
   (C)  AN  ELIGIBLE  RENTAL  BUILDING  OWNED BY A LIMITED-PROFIT HOUSING
 COMPANY OR REDEVELOPMENT COMPANY, SHALL NOT BE ELIGIBLE FOR AN EXEMPTION
 FROM REAL PROPERTY TAXATION FOR LOCAL PURPOSES PURSUANT TO THIS SUBDIVI-
 SION.
   (2) SUCH EXEMPTION SHALL BEGIN WITH THE FIRST QUARTERLY TAX BILL IMME-
 DIATELY FOLLOWING THE RESTRICTIVE DECLARATION DATE  AND  SHALL  CONTINUE
 FOR A PERIOD NOT TO EXCEED FIFTEEN YEARS IN THE AGGREGATE, AS FOLLOWS:
   (A) EXCEPT AS OTHERWISE PROVIDED HEREIN, FOR TEN YEARS, SUCH EXEMPTION
 SHALL  BE  EQUAL  TO THE AMOUNT OF ASSESSED VALUATION THAT IS SUBJECT TO
 EXEMPTION UNDER THIS PARAGRAPH AS OF THE COMMENCEMENT DATE;
   (B) FOLLOWED BY ONE YEAR OF EXEMPTION FROM EIGHTY-THREE AND  ONE-THIRD
 PERCENT OF SUCH AMOUNT;
   (C)  FOLLOWED  BY  ONE YEAR OF EXEMPTION FROM SIXTY-SIX AND TWO-THIRDS
 PERCENT OF SUCH AMOUNT;
   (D) FOLLOWED BY ONE YEAR OF  EXEMPTION  FROM  FIFTY  PERCENT  OF  SUCH
 AMOUNT;
   (E)  FOLLOWED BY ONE YEAR OF EXEMPTION FROM THIRTY-THREE AND ONE-THIRD
 PERCENT OF SUCH AMOUNT;
   (F) FOLLOWED BY ONE YEAR OF  EXEMPTION  FROM  SIXTEEN  AND  TWO-THIRDS
 PERCENT OF SUCH AMOUNT;
   (G)  AFTER WHICH THE AMOUNT OF ASSESSED VALUATION THAT HAD BEEN EXEMPT
 IS FULLY TAXABLE.
   (3) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH:
   (A) THE OWNER OF ANY SUCH ELIGIBLE RENTAL BUILDING, SHALL PAY, IN EACH
 YEAR IN WHICH REHABILITATION PROGRAM BENEFITS ARE IN EFFECT, REAL  PROP-
 ERTY TAXES ON ANY AMOUNT OF THE ASSESSED VALUATION OF SUCH BUILDING THAT
 IS  NOT  EXEMPT FROM REAL PROPERTY TAXATION PURSUANT TO SUBPARAGRAPH TWO
 OF THIS PARAGRAPH   AND FOR WHICH  THERE  IS  NO  ABATEMENT  THEREOF  IN
 ACCORDANCE  WITH  PARAGRAPH (C) OF THIS SUBDIVISION, AS WELL AS ANY SUCH
 REAL PROPERTY TAXES RELATED TO THE LAND PORTION OF SUCH  REAL  PROPERTY;
 AND
   (B) IF ELIGIBLE CONSTRUCTION IS COMPLETED ON AN ELIGIBLE RENTAL BUILD-
 ING  THAT  IS  THE RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE, THE
 EXEMPTION UNDER THIS PARAGRAPH  SHALL  CONTINUE  FOR  A  PERIOD  NOT  TO
 EXCEED,  IN THE AGGREGATE, THE GREATER OF FIFTEEN YEARS OR THE REMAINING
 TERM, UP TO FORTY YEARS, OF THE RELEVANT REGULATORY AGREEMENT  WITH  THE
 LOCAL  HOUSING AGENCY IN EFFECT AS OF THE FILING DATE OF THE APPLICATION
 FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE  COST,  WITH  THE  FINAL
 FIVE YEARS OF SUCH EXEMPTION TO BE IMPLEMENTED IN ACCORDANCE WITH CLAUS-
 ES  (B)  THROUGH  (F) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH, AFTER WHICH
 THE ASSESSED VALUE IS FULLY TAXABLE.
   (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NO ELIGIBLE
 RENTAL BUILDING SHALL RECEIVE CONCURRENT  EXEMPTIONS  UNDER  THIS  PARA-
 GRAPH,  AND  UPON  THE COMMENCEMENT OF AN EXEMPTION UNDER THIS PARAGRAPH
 FOR AN ELIGIBLE RENTAL BUILDING, ANY PRIOR EXEMPTION  UNDER  THIS  PARA-
 GRAPH FOR SUCH ELIGIBLE RENTAL BUILDING STILL IN EFFECT SHALL IMMEDIATE-
 LY TERMINATE.
   (C)  ABATEMENT.    ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE AN
 ABATEMENT OF REAL PROPERTY TAXES ON AN ELIGIBLE BUILDING IN WHICH ELIGI-
 BLE CONSTRUCTION HAS BEEN COMPLETED, PROVIDED THAT:
   (1) SUCH ABATEMENT SHALL NOT EXCEED SEVENTY PERCENT OF  THE  CERTIFIED
 REASONABLE  COST OF THE ELIGIBLE CONSTRUCTION, AS DETERMINED UNDER RULES
 AND REGULATIONS OF THE LOCAL HOUSING AGENCY;
 S. 4709                             7

   (2) SUCH ABATEMENT SHALL NOT BE EFFECTIVE FOR MORE THAN TWENTY YEARS;
   (3)  THE  ANNUAL  ABATEMENT  OF  REAL  PROPERTY TAXES ON SUCH ELIGIBLE
 BUILDING SHALL NOT EXCEED EIGHT  AND  ONE-THIRD  PERCENT  OF  THE  TOTAL
 CERTIFIED REASONABLE COST OF SUCH ELIGIBLE CONSTRUCTION;
   (4)  THE  ANNUAL  ABATEMENT  OF  REAL  PROPERTY TAXES ON SUCH ELIGIBLE
 BUILDING IN ANY CONSECUTIVE TWELVE-MONTH PERIOD SHALL IN NO EVENT EXCEED
 THE AMOUNT OF REAL PROPERTY TAXES PAYABLE IN  SUCH  TWELVE-MONTH  PERIOD
 FOR  SUCH  BUILDING,  PROVIDED,  HOWEVER,  THAT SUCH ABATEMENT SHALL NOT
 EXCEED FIFTY PERCENT OF THE AMOUNT OF REAL  PROPERTY  TAXES  PAYABLE  IN
 SUCH TWELVE-MONTH PERIOD FOR ANY OF THE FOLLOWING:
   (A)  AN  ELIGIBLE  RENTAL  BUILDING  OWNED BY A LIMITED-PROFIT HOUSING
 COMPANY OR A REDEVELOPMENT COMPANY;
   (B) AN ELIGIBLE HOMEOWNERSHIP BUILDING; AND
   (C) AN ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING; AND
   (5) SUCH ABATEMENT SHALL BECOME EFFECTIVE:
   (A) FOR ELIGIBLE RENTAL BUILDINGS OTHER THAN THOSE OWNED AND  OPERATED
 BY  LIMITED-PROFIT HOUSING COMPANIES, BEGINNING WITH THE FIRST QUARTERLY
 TAX BILL IMMEDIATELY FOLLOWING THE RESTRICTIVE DECLARATION DATE;
   (B) FOR ALL OTHER ELIGIBLE BUILDINGS, INCLUDING ELIGIBLE RENTAL BUILD-
 INGS OWNED AND OPERATED BY LIMITED-PROFIT HOUSING  COMPANIES,  BEGINNING
 WITH  THE  FIRST  QUARTERLY  TAX  BILL IMMEDIATELY FOLLOWING THE DATE OF
 ISSUANCE OF THE CERTIFICATE OF ELIGIBILITY AND REASONABLE COST.
   (D) AUTHORITY OF CITY TO ADOPT RULES AND REGULATIONS. ANY  SUCH  LOCAL
 LAW  OR ORDINANCE SHALL AUTHORIZE THE ADOPTION OF RULES AND REGULATIONS,
 NOT INCONSISTENT WITH THIS SUBDIVISION, BY THE LOCAL HOUSING AGENCY  AND
 ANY OTHER LOCAL AGENCY NECESSARY FOR THE IMPLEMENTATION OF THIS SUBDIVI-
 SION.
   (E)  APPLICATIONS.   (1) ANY SUCH LOCAL LAW OR ORDINANCE SHALL REQUIRE
 THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST
 PURSUANT TO THIS SUBDIVISION BE MADE AFTER THE COMPLETION  DATE  AND  NO
 LATER THAN FOUR MONTHS FROM SUCH COMPLETION DATE.
   (2)  SUCH  APPLICATION SHALL INCLUDE EVIDENCE OF ELIGIBILITY FOR REHA-
 BILITATION PROGRAM BENEFITS AND EVIDENCE OF REASONABLE COST AS SHALL  BE
 SATISFACTORY  TO THE LOCAL HOUSING AGENCY INCLUDING, BUT NOT LIMITED TO,
 EVIDENCE SHOWING THE COST OF ELIGIBLE CONSTRUCTION.
   (3) THE LOCAL HOUSING AGENCY SHALL REQUIRE A NON-REFUNDABLE FILING FEE
 THAT SHALL BE PAID BY A CERTIFIED CHECK  OR  CASHIER'S  CHECK  UPON  THE
 FILING OF AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE
 COST.  SUCH FEE SHALL BE (A) ONE THOUSAND DOLLARS, PLUS (B) SEVENTY-FIVE
 DOLLARS FOR EACH DWELLING UNIT IN EXCESS OF SIX DWELLING  UNITS  IN  THE
 ELIGIBLE BUILDING THAT IS THE SUBJECT OF SUCH APPLICATION.
   (4)  ANY  APPLICATION THAT IS FILED PURSUANT TO THIS PARAGRAPH THAT IS
 MISSING ANY OF THE INFORMATION AND  DOCUMENTATION  REQUIRED  AT  INITIAL
 FILING  BY  SUCH LOCAL LAW OR ORDINANCE AND ANY RULES AND REGULATIONS OF
 THE LOCAL HOUSING AGENCY SHALL BE DENIED, PROVIDED THAT A  NEW  APPLICA-
 TION FOR THE SAME ELIGIBLE CONSTRUCTION, TOGETHER WITH A NEW NON-REFUND-
 ABLE  FILING  FEE, MAY BE FILED WITHIN FIFTEEN DAYS OF THE DATE OF ISSU-
 ANCE OF SUCH DENIAL. IF SUCH SECOND APPLICATION IS ALSO MISSING ANY SUCH
 REQUIRED INFORMATION AND  DOCUMENTATION,  IT  SHALL  BE  DENIED  AND  NO
 FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMIT-
 TED.
   (5)  THE  FAILURE  OF  AN APPLICANT TO RESPOND TO ANY CHECKLIST WITHIN
 THIRTY DAYS OF THE DATE OF ITS ISSUANCE  BY  THE  LOCAL  HOUSING  AGENCY
 SHALL  RESULT IN DENIAL OF SUCH APPLICATION, AND NO FURTHER APPLICATIONS
 FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMITTED. THE LOCAL HOUSING
 AGENCY SHALL ISSUE NOT MORE THAN THREE CHECKLISTS  PER  APPLICATION.  AN
 S. 4709                             8
 
 APPLICATION  FOR  A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST SHALL
 BE DENIED WHEN THE LOCAL HOUSING AGENCY DOES NOT HAVE A SUFFICIENT BASIS
 TO ISSUE A CERTIFICATE OF ELIGIBILITY  AND  REASONABLE  COST  AFTER  THE
 TIMELY  RESPONSE  OF AN APPLICANT TO THE THIRD CHECKLIST CONCERNING SUCH
 APPLICATION. AFTER THE LOCAL HOUSING AGENCY HAS  DENIED  AN  APPLICATION
 FOR  THE  REASON  DESCRIBED IN THE PRECEDING SENTENCE, SUCH AGENCY SHALL
 PERMIT NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION.
   (6) AN APPLICATION FOR A CERTIFICATE  OF  ELIGIBILITY  AND  REASONABLE
 COST SHALL ALSO INCLUDE AN AFFIDAVIT OF NO HARASSMENT.
   (A) SUCH AFFIDAVIT SHALL SET FORTH THE FOLLOWING INFORMATION:
   (I)  THE  NAME  OF  EVERY  OWNER  OF RECORD AND OWNER OF A SUBSTANTIAL
 INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING
 OR SPONSORING THE ELIGIBLE CONSTRUCTION; AND
   (II) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE  YEARS
 PRIOR  TO THE COMPLETION DATE, BEEN FOUND TO HAVE HARASSED OR UNLAWFULLY
 EVICTED TENANTS BY JUDGMENT OR  DETERMINATION  OF  A  COURT  OR  AGENCY,
 INCLUDING  A  NON-GOVERNMENTAL AGENCY HAVING APPROPRIATE LEGAL JURISDIC-
 TION UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY
 STATE OR LOCAL  LAW  RELATING  TO  HARASSMENT  OF  TENANTS  OR  UNLAWFUL
 EVICTION.
   (B)  NO  ELIGIBLE BUILDING SHALL BE ELIGIBLE FOR AN EXEMPTION PURSUANT
 TO PARAGRAPH (B) OF THIS SUBDIVISION OR AN ABATEMENT PURSUANT  TO  PARA-
 GRAPH (C) OF THIS SUBDIVISION WHERE:
   (I) ANY AFFIDAVIT REQUIRED UNDER THIS SUBPARAGRAPH HAS NOT BEEN FILED;
 OR
   (II)  ANY SUCH AFFIDAVIT CONTAINS A WILLFUL MISREPRESENTATION OR OMIS-
 SION OF ANY MATERIAL FACT; OR
   (III) ANY OWNER OF RECORD OR OWNER OF A SUBSTANTIAL  INTEREST  IN  THE
 ELIGIBLE  BUILDING  OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSORING
 THE ELIGIBLE CONSTRUCTION HAS BEEN FOUND, BY JUDGMENT  OR  DETERMINATION
 OF  A COURT OR AGENCY, INCLUDING A NON-GOVERNMENTAL AGENCY HAVING APPRO-
 PRIATE LEGAL JURISDICTION UNDER THE PENAL LAW, ANY STATE  OR  LOCAL  LAW
 REGULATING  RENTS  OR  ANY  STATE OR LOCAL LAW RELATING TO HARASSMENT OF
 TENANTS OR UNLAWFUL EVICTION, TO HAVE, WITHIN THE FIVE  YEARS  PRIOR  TO
 THE  COMPLETION  DATE, HARASSED OR UNLAWFULLY EVICTED TENANTS, UNTIL AND
 UNLESS THE FINDING IS REVERSED ON APPEAL.
   (C) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL,  SPECIAL  OR  LOCAL
 LAW  TO  THE  CONTRARY, THE CORPORATION COUNSEL OR OTHER LEGAL REPRESEN-
 TATIVE OF A CITY HAVING A POPULATION OF  ONE  MILLION  OR  MORE  OR  THE
 DISTRICT  ATTORNEY  OF ANY COUNTY, MAY INSTITUTE AN ACTION OR PROCEEDING
 IN ANY COURT OF COMPETENT JURISDICTION THAT MAY BE APPROPRIATE OR NECES-
 SARY TO DETERMINE WHETHER ANY OWNER OF RECORD OR OWNER OF A  SUBSTANTIAL
 INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING
 OR  SPONSORING  THE  ELIGIBLE  CONSTRUCTION  HAS  HARASSED OR UNLAWFULLY
 EVICTED TENANTS AS DESCRIBED IN THIS SUBPARAGRAPH.
   (7) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL,  SPECIAL  OR  LOCAL
 LAW  TO  THE CONTRARY, THE LOCAL HOUSING AGENCY MAY REQUIRE BY RULES AND
 REGULATIONS THAT AN APPLICATION FOR A  CERTIFICATE  OF  ELIGIBILITY  AND
 REASONABLE COST BE FILED ELECTRONICALLY.
   (F) ADDITIONAL REQUIREMENTS FOR AN ELIGIBLE RENTAL BUILDING OTHER THAN
 ONE  OWNED  AND  OPERATED BY A LIMITED-PROFIT HOUSING COMPANY.  ANY SUCH
 LOCAL LAW OR ORDINANCE SHALL, IN ADDITION TO  ALL  OTHER  CONDITIONS  OF
 ELIGIBILITY FOR REHABILITATION PROGRAM BENEFITS SET FORTH IN THIS SUBDI-
 VISION,  REQUIRE  THAT AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED
 AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY, ALSO COMPLY  WITH  ALL
 PROVISIONS OF THIS PARAGRAPH. NOTWITHSTANDING THE FOREGOING, AN ELIGIBLE
 S. 4709                             9
 
 RENTAL  BUILDING  THAT  IS  THE  RECIPIENT  OF  SUBSTANTIAL GOVERNMENTAL
 ASSISTANCE SHALL NOT BE  REQUIRED  TO  COMPLY  WITH  THE  PROVISIONS  OF
 SUBPARAGRAPH THREE OF THIS PARAGRAPH.
   (1)  NOTWITHSTANDING ANY PROVISION OF RENT REGULATION TO THE CONTRARY,
 ANY MARKET RENTAL UNIT WITHIN SUCH ELIGIBLE RENTAL BUILDING  SUBJECT  TO
 RENT  REGULATION  AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIF-
 ICATE OF ELIGIBILITY AND REASONABLE COST AND ANY AFFORDABLE RENTAL  UNIT
 WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE SUBJECT TO RENT REGULATION
 UNTIL  SUCH  UNIT  FIRST  BECOMES  VACANT  AFTER  THE  EXPIRATION OF THE
 RESTRICTION PERIOD AT WHICH TIME SUCH UNIT, UNLESS IT WOULD  BE  SUBJECT
 TO  RENT REGULATION FOR REASONS OTHER THAN THE PROVISIONS OF THIS SUBDI-
 VISION,  SHALL  BE  DEREGULATED,  PROVIDED,  HOWEVER,  THAT  DURING  THE
 RESTRICTION  PERIOD,  NO  EXEMPTION OR EXCLUSION FROM ANY REQUIREMENT OF
 RENT REGULATION SHALL APPLY TO SUCH DWELLING UNIT.
   (2) THE OWNER OF AN ELIGIBLE RENTAL BUILDING SHALL EXECUTE AND  RECORD
 A  RESTRICTIVE  DECLARATION, IN A FORM SATISFACTORY TO THE LOCAL HOUSING
 AGENCY, THAT REQUIRES COMPLIANCE WITH THE PROVISIONS  OF  THIS  SUBDIVI-
 SION,  SUCH LOCAL LAW OR ORDINANCE, AND THE RULES AND REGULATIONS OF THE
 LOCAL HOUSING AGENCY. SUCH RESTRICTIVE DECLARATION SHALL BIND THE  OWNER
 OF  SUCH  ELIGIBLE RENTAL BUILDING AND ITS SUCCESSORS AND ASSIGNEES, AND
 MAY INCLUDE SUCH OTHER TERMS AND CONDITIONS AS THE LOCAL HOUSING  AGENCY
 SHALL DETERMINE.
   (3)  ADDITIONAL  REQUIREMENTS  FOR AN ELIGIBLE RENTAL BUILDING THAT IS
 NOT A RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE:
   (A) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH ELIGIBLE
 RENTAL BUILDING SHALL BE DESIGNATED  AS  AFFORDABLE  RENTAL  UNITS.  THE
 RESTRICTIVE  DECLARATION FOR ANY SUCH ELIGIBLE RENTAL BUILDING SHALL NOT
 BE EXECUTED AND RECORDED UNTIL LEASES IN ACCORDANCE WITH THE  APPLICABLE
 PROVISIONS  OF  RENT  REGULATION  HAVE BEEN EXECUTED WITH RESPECT TO ALL
 AFFORDABLE RENTAL UNITS WITHIN SUCH ELIGIBLE  RENTAL  BUILDING  AND  ALL
 AFFORDABLE  RENTAL  UNITS  HAVE  BEEN REGISTERED IN ACCORDANCE WITH SUCH
 RENT REGULATION PROVISIONS.
   (B) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL  ENSURE  THAT  NO
 AFFORDABLE RENTAL UNIT IS HELD OFF THE MARKET FOR A PERIOD THAT IS LONG-
 ER  THAN  REASONABLY NECESSARY. TO THAT END, SUCH OWNER SHALL NOTIFY THE
 LOCAL HOUSING AGENCY OF A VACANCY OF AN AFFORDABLE  RENTAL  UNIT  WITHIN
 SUCH  RENTAL  BUILDING DURING THE RESTRICTION PERIOD NO LATER THAN SEVEN
 DAYS FOLLOWING SUCH VACANCY, AFTER WHICH  SUCH  AFFORDABLE  RENTAL  UNIT
 SHALL  BE  MARKETED  IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE
 LOCAL HOUSING AGENCY AND SHALL BE RENTED BY THE OWNER IN  A  PROMPT  AND
 TIMELY  MANNER.  THE  LOCAL  HOUSING AGENCY MAY IMPOSE REQUIREMENTS UPON
 SUCH OWNER TO FACILITATE SUCH PROMPT AND TIMELY RENTAL, AS SET FORTH  IN
 RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY.
   (C)  THE  OWNER  OF  SUCH  ELIGIBLE  RENTAL BUILDING SHALL, DURING THE
 RESTRICTION PERIOD, WAIVE THE COLLECTION OF ANY MAJOR  CAPITAL  IMPROVE-
 MENT RENT INCREASE GRANTED BY THE NEW YORK STATE DIVISION OF HOUSING AND
 COMMUNITY  RENEWAL  PURSUANT  TO RENT REGULATION THAT IS ATTRIBUTABLE TO
 ELIGIBLE CONSTRUCTION FOR WHICH SUCH ELIGIBLE RENTAL  BUILDING  RECEIVES
 REHABILITATION  PROGRAM  BENEFITS, AND SHALL FILE A DECLARATION WITH THE
 NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL PROVIDING  SUCH
 WAIVER.
   (D)  AN  AFFORDABLE  RENTAL  UNIT  SHALL NOT BE RENTED ON A TEMPORARY,
 TRANSIENT OR SHORT-TERM BASIS. EVERY LEASE AND RENEWAL  THEREOF  FOR  AN
 AFFORDABLE  RENTAL  UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT THE
 OPTION OF THE TENANT, AND SHALL INCLUDE A NOTICE  IN  AT  LEAST  TWELVE-
 POINT TYPE INFORMING SUCH TENANT OF THEIR RIGHTS PURSUANT TO THIS SUBDI-
 S. 4709                            10

 VISION,  INCLUDING  AN EXPLANATION OF THE RESTRICTIONS ON RENT INCREASES
 THAT MAY BE IMPOSED ON SUCH AFFORDABLE RENTAL UNIT.
   (E)  THE  LOCAL  HOUSING AGENCY MAY ESTABLISH BY RULES AND REGULATIONS
 SUCH REQUIREMENTS AS THE LOCAL HOUSING AGENCY DEEMS NECESSARY OR  APPRO-
 PRIATE FOR THE FOLLOWING:
   (I)  DESIGNATING  AFFORDABLE  RENTAL UNITS, INCLUDING, BUT NOT LIMITED
 TO, DESIGNATING THE UNIT  MIX  AND  DISTRIBUTION  REQUIREMENTS  OF  SUCH
 AFFORDABLE RENTAL UNITS IN AN ELIGIBLE BUILDING;
   (II) MARKETING AFFORDABLE RENTAL UNITS UPON ANY VACANCY; AND
   (III)  MONITORING  COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION.
 SUCH REQUIREMENTS MAY INCLUDE, BUT NEED NOT BE LIMITED TO,  RETAINING  A
 MONITOR  APPROVED  BY THE LOCAL HOUSING AGENCY AND PAID FOR BY THE OWNER
 OF THE ELIGIBLE RENTAL BUILDING.
   (4) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL NOT ENGAGE IN  OR
 CAUSE  ANY HARASSMENT OF THE TENANTS OF SUCH ELIGIBLE RENTAL BUILDING OR
 UNLAWFULLY EVICT ANY SUCH TENANTS DURING THE RESTRICTION PERIOD.
   (5) NO DWELLING UNITS WITHIN SUCH ELIGIBLE RENTAL  BUILDING  SHALL  BE
 CONVERTED TO COOPERATIVE OR CONDOMINIUM OWNERSHIP DURING THE RESTRICTION
 PERIOD.
   (6)  ANY  NON-COMPLIANCE  OF  AN  ELIGIBLE  RENTAL  BUILDING  WITH THE
 PROVISIONS OF THIS PARAGRAPH SHALL PERMIT THE LOCAL  HOUSING  AGENCY  TO
 TAKE THE FOLLOWING ACTION:
   (A) EXTEND THE RESTRICTION PERIOD;
   (B)  INCREASE  THE  NUMBER OF AFFORDABLE RENTAL UNITS IN SUCH ELIGIBLE
 RENTAL BUILDING;
   (C) IMPOSE A PENALTY OF NOT MORE THAN  THE  PRODUCT  OF  ONE  THOUSAND
 DOLLARS  PER INSTANCE OF NON-COMPLIANCE AND THE NUMBER OF DWELLING UNITS
 CONTAINED IN SUCH ELIGIBLE RENTAL BUILDING; AND
   (D) TERMINATE OR REVOKE ANY REHABILITATION PROGRAM BENEFITS IN ACCORD-
 ANCE WITH PARAGRAPH (N) OF THIS SUBDIVISION.
   (G) COMPLIANCE WITH APPLICABLE LAW.  ANY SUCH LOCAL LAW  OR  ORDINANCE
 MAY  ALSO  PROVIDE  THAT  REHABILITATION  PROGRAM  BENEFITS SHALL NOT BE
 ALLOWED FOR ANY ELIGIBLE BUILDING UNLESS AND UNTIL SUCH ELIGIBLE  BUILD-
 ING COMPLIES WITH ALL APPLICABLE PROVISIONS OF LAW.
   (H)  IMPLEMENTATION  OF REHABILITATION PROGRAM BENEFITS. UPON ISSUANCE
 OF A CERTIFICATE OF ELIGIBILITY  AND  REASONABLE  COST  AND  PAYMENT  OF
 OUTSTANDING FEES, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO TRANS-
 MIT  SUCH  CERTIFICATE  OF  ELIGIBILITY AND REASONABLE COST TO THE LOCAL
 AGENCY RESPONSIBLE FOR REAL PROPERTY TAX ASSESSMENT. UPON RECEIPT  OF  A
 CERTIFICATE OF ELIGIBILITY AND REASONABLE COST, THE LOCAL AGENCY RESPON-
 SIBLE FOR REAL PROPERTY TAX ASSESSMENT SHALL CERTIFY THE AMOUNT OF VALUE
 TO BE EXEMPT FROM TAXATION AND THE AMOUNT OF TAXES TO BE ABATED PURSUANT
 TO  PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION, RESPECTIVELY, AND PURSU-
 ANT TO SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE COST  PROVIDED  BY
 THE LOCAL HOUSING AGENCY.
   (I)  OUTSTANDING  TAXES AND CHARGES.   ANY SUCH LOCAL LAW OR ORDINANCE
 SHALL ALSO PROVIDE THAT REHABILITATION PROGRAM  BENEFITS  SHALL  NOT  BE
 ALLOWED FOR AN ELIGIBLE BUILDING IN EITHER OF THE FOLLOWING CASES:
   (1) THERE ARE OUTSTANDING REAL ESTATE TAXES OR WATER AND SEWER CHARGES
 OR  PAYMENTS  IN LIEU OF TAXES THAT ARE DUE AND OWING AS OF THE LAST DAY
 OF THE TAX PERIOD PRECEDING THE DATE OF THE RECEIPT OF  THE  CERTIFICATE
 OF  ELIGIBILITY  AND REASONABLE COST BY THE LOCAL AGENCY RESPONSIBLE FOR
 REAL PROPERTY TAX ASSESSMENT; OR
   (2) REAL ESTATE TAXES OR WATER AND  SEWER  CHARGES  DUE  AT  ANY  TIME
 DURING  THE  AUTHORIZED TERM OF SUCH BENEFITS REMAIN UNPAID FOR ONE YEAR
 AFTER THE SAME ARE DUE AND PAYABLE.
 S. 4709                            11
 
   (J) ADDITIONAL LIMITATIONS ON ELIGIBILITY.   ANY  SUCH  LOCAL  LAW  OR
 ORDINANCE SHALL ALSO PROVIDE THAT:
   (1)  REHABILITATION  PROGRAM  BENEFITS  SHALL  NOT  BE ALLOWED FOR ANY
 ELIGIBLE BUILDING RECEIVING TAX EXEMPTION OR ABATEMENT CONCURRENTLY  FOR
 REHABILITATION OR NEW CONSTRUCTION UNDER ANY OTHER PROVISION OF STATE OR
 LOCAL  LAW  OR ORDINANCE WITH THE EXCEPTION OF ANY ELIGIBLE CONSTRUCTION
 TO AN ELIGIBLE BUILDING RECEIVING A TAX EXEMPTION OR ABATEMENT UNDER THE
 PROVISIONS OF THE PRIVATE HOUSING FINANCE LAW;
   (2) REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY  ITEM
 OF ELIGIBLE CONSTRUCTION IN AN ELIGIBLE BUILDING IF SUCH ELIGIBLE BUILD-
 ING  IS  RECEIVING  TAX EXEMPTION OR ABATEMENT FOR THE SAME OR A SIMILAR
 ITEM OF ELIGIBLE CONSTRUCTION AS OF THE DECEMBER THIRTY-FIRST  PRECEDING
 THE  DATE OF APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE
 COST FOR SUCH REHABILITATION PROGRAM BENEFITS;
   (3) WHERE THE ELIGIBLE CONSTRUCTION INCLUDES OR BENEFITS A PORTION  OF
 AN  ELIGIBLE  BUILDING  THAT  IS NOT OCCUPIED FOR DWELLING PURPOSES, THE
 ASSESSED VALUATION OF SUCH ELIGIBLE BUILDING AND THE COST OF THE  ELIGI-
 BLE  CONSTRUCTION  SHALL  BE  APPORTIONED SO THAT REHABILITATION PROGRAM
 BENEFITS SHALL NOT BE PROVIDED FOR ELIGIBLE CONSTRUCTION MADE FOR  OTHER
 THAN DWELLING PURPOSES; AND
   (4)  REHABILITATION  PROGRAM BENEFITS SHALL NOT BE APPLIED TO ABATE OR
 REDUCE THE TAXES UPON THE LAND PORTION OF  REAL  PROPERTY,  WHICH  SHALL
 CONTINUE  TO  BE TAXED BASED UPON THE ASSESSED VALUATION OF THE LAND AND
 THE APPLICABLE TAX RATE AT THE TIME SUCH TAXES ARE LEVIED.
   (K) RE-INSPECTION PENALTY.  ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO
 PROVIDE THAT IF THE LOCAL HOUSING  AGENCY  CANNOT  VERIFY  THE  ELIGIBLE
 CONSTRUCTION  CLAIMED  BY  AN APPLICANT UPON THE FIRST INSPECTION BY THE
 LOCAL HOUSING AGENCY OF THE ELIGIBLE BUILDING, SUCH APPLICANT  SHALL  BE
 REQUIRED  TO  PAY TEN TIMES THE ACTUAL COST OF ANY ADDITIONAL INSPECTION
 NEEDED TO VERIFY SUCH ELIGIBLE CONSTRUCTION.
   (L) STRICT LIABILITY FOR INACCURATE APPLICATIONS.  ANY SUCH LOCAL  LAW
 OR  ORDINANCE SHALL ALSO PROVIDE THAT IF THE LOCAL HOUSING AGENCY DETER-
 MINES THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY  AND  REASON-
 ABLE  COST  CONTAINS  A MATERIAL MISSTATEMENT OF FACT, THE LOCAL HOUSING
 AGENCY MAY REJECT SUCH APPLICATION AND BAR THE SUBMISSION OF  ANY  OTHER
 APPLICATION  PURSUANT  TO THIS SUBDIVISION WITH RESPECT TO SUCH ELIGIBLE
 BUILDING FOR A PERIOD NOT TO EXCEED THREE YEARS. AN APPLICANT SHALL  NOT
 BE RELIEVED FROM LIABILITY UNDER THIS PARAGRAPH BECAUSE IT SUBMITTED ITS
 APPLICATION  UNDER A MISTAKEN BELIEF OF FACT. FURTHERMORE, ANY PERSON OR
 ENTITY THAT FILES MORE THAN SIX APPLICATIONS CONTAINING SUCH A  MATERIAL
 MISSTATEMENT OF FACT WITHIN ANY TWELVE-MONTH PERIOD SHALL BE BARRED FROM
 SUBMITTING  ANY  NEW  APPLICATION FOR REHABILITATION PROGRAM BENEFITS ON
 BEHALF OF ANY ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED FIVE YEARS.
   (M) INVESTIGATORY AUTHORITY.  ANY SUCH LOCAL LAW  OR  ORDINANCE  SHALL
 ALSO  ALLOW  THE LOCAL HOUSING AGENCY TO REQUIRE SUCH CERTIFICATIONS AND
 CONSENTS NECESSARY TO ACCESS RECORDS, INCLUDING OTHER  TAX  RECORDS,  AS
 MAY  BE  DEEMED  APPROPRIATE  TO ENFORCE THE ELIGIBILITY REQUIREMENTS OF
 THIS SUBDIVISION. ANY SUCH LOCAL LAW OR ORDINANCE SHALL FURTHER  PROVIDE
 THAT,  FOR  PURPOSES OF DETERMINING AND CERTIFYING ELIGIBILITY FOR REHA-
 BILITATION PROGRAM BENEFITS AND THE  REASONABLE  COST  OF  ANY  ELIGIBLE
 CONSTRUCTION, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO:
   (1)  ADMINISTER OATHS TO AND TAKE THE TESTIMONY OF ANY PERSON, INCLUD-
 ING, BUT NOT LIMITED TO, THE OWNER OF SUCH ELIGIBLE BUILDING;
   (2) ISSUE SUBPOENAS REQUIRING THE ATTENDANCE OF SUCH PERSONS  AND  THE
 PRODUCTION OF ANY BILLS, BOOKS, PAPERS OR OTHER DOCUMENTS AS IT MAY DEEM
 NECESSARY;
 S. 4709                            12
 
   (3)  MAKE PRELIMINARY ESTIMATES OF THE MAXIMUM REASONABLE COST OF SUCH
 ELIGIBLE CONSTRUCTION;
   (4)  ESTABLISH MAXIMUM ALLOWABLE COSTS OF SPECIFIED UNITS, FIXTURES OR
 WORK IN SUCH ELIGIBLE CONSTRUCTION;
   (5) REQUIRE THE SUBMISSION OF PLANS AND SPECIFICATIONS OF SUCH  ELIGI-
 BLE CONSTRUCTION BEFORE THE COMMENCEMENT THEREOF;
   (6) REQUIRE PHYSICAL ACCESS TO INSPECT THE ELIGIBLE BUILDING; AND
   (7)  ON  AN  ANNUAL  BASIS,  REQUIRE  THE SUBMISSION OF LEASES FOR ANY
 DWELLING UNIT IN A BUILDING GRANTED A  CERTIFICATE  OF  ELIGIBILITY  AND
 REASONABLE COST.
   (N)  TERMINATION OR REVOCATION.  ANY SUCH LOCAL LAW OR ORDINANCE SHALL
 PROVIDE THAT FAILURE TO COMPLY WITH THE PROVISIONS OF THIS  SUBDIVISION,
 ANY  SUCH  LOCAL LAW OR ORDINANCE, ANY RULES AND REGULATIONS PROMULGATED
 THEREUNDER, OR ANY RESTRICTIVE DECLARATION,  MUTUAL  COMPANY  REGULATORY
 AGREEMENT,  OR MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT ENTERED
 INTO THEREUNDER, MAY RESULT IN REVOCATION OF ANY REHABILITATION  PROGRAM
 BENEFITS  RETROACTIVE  TO  THE COMMENCEMENT THEREOF. SUCH TERMINATION OR
 REVOCATION SHALL  NOT  EXEMPT  SUCH  ELIGIBLE  BUILDING  FROM  CONTINUED
 COMPLIANCE  WITH THE REQUIREMENTS OF THIS SUBDIVISION, SUCH LOCAL LAW OR
 ORDINANCE, SUCH RULES AND REGULATIONS, AND SUCH RESTRICTIVE DECLARATION,
 MUTUAL COMPANY REGULATORY AGREEMENT,  OR  MUTUAL  REDEVELOPMENT  COMPANY
 REGULATORY AGREEMENT.
   (O)  CRIMINAL  LIABILITY FOR UNAUTHORIZED USES.  ANY SUCH LOCAL LAW OR
 ORDINANCE SHALL ALSO PROVIDE THAT IN THE EVENT  THAT  ANY  RECIPIENT  OF
 REHABILITATION  PROGRAM BENEFITS USES ANY DWELLING UNIT IN SUCH ELIGIBLE
 BUILDING IN VIOLATION OF THE REQUIREMENTS OF SUCH LOCAL LAW OR ORDINANCE
 AS ADOPTED PURSUANT TO THIS SUBDIVISION AND ANY  RULES  AND  REGULATIONS
 PROMULGATED  PURSUANT  THERETO,  SUCH  RECIPIENT  SHALL  BE GUILTY OF AN
 UNCLASSIFIED MISDEMEANOR PUNISHABLE BY A FINE IN AN AMOUNT EQUIVALENT TO
 DOUBLE THE VALUE OF THE GAIN OF SUCH RECIPIENT FROM SUCH UNLAWFUL USE OR
 IMPRISONMENT FOR NOT MORE THAN NINETY DAYS, OR BOTH.
   (P) PRIVATE RIGHT OF ACTION.   ANY  PROSPECTIVE,  PRESENT,  OR  FORMER
 TENANT  OF  AN  ELIGIBLE RENTAL BUILDING MAY SUE TO ENFORCE THE REQUIRE-
 MENTS AND PROHIBITIONS OF THIS SUBDIVISION, ANY SUCH LOCAL LAW OR  ORDI-
 NANCE, ANY RULES AND REGULATIONS PROMULGATED THEREUNDER, OR ANY RESTRIC-
 TIVE  DECLARATION  ENTERED  INTO THEREUNDER, IN THE SUPREME COURT OF NEW
 YORK.   ANY SUCH INDIVIDUAL HARMED BY REASON  OF  A  VIOLATION  OF  SUCH
 REQUIREMENTS  AND  PROHIBITIONS MAY SUE THEREFOR IN THE SUPREME COURT OF
 NEW YORK ON BEHALF OF HIMSELF OR HERSELF, AND  SHALL  RECOVER  THREEFOLD
 THE  DAMAGES  SUSTAINED AND THE COST OF THE SUIT, INCLUDING A REASONABLE
 ATTORNEY'S FEE. THE LOCAL HOUSING AGENCY  MAY  USE  ANY  COURT  DECISION
 UNDER  THIS PARAGRAPH THAT IS ADVERSE TO THE OWNER OF AN ELIGIBLE BUILD-
 ING AS THE BASIS FOR FURTHER  ENFORCEMENT  ACTION.  NOTWITHSTANDING  ANY
 OTHER  PROVISION  OF  LAW,  AN  ACTION BY A TENANT OF AN ELIGIBLE RENTAL
 BUILDING UNDER THIS PARAGRAPH SHALL BE COMMENCED WITHIN SIX  YEARS  FROM
 THE DATE OF THE LATEST VIOLATION.
   (Q) APPOINTMENT OF RECEIVER.  IN ADDITION TO THE REMEDIES FOR NON-COM-
 PLIANCE PROVIDED FOR IN SUBPARAGRAPH SIX OF PARAGRAPH (F) OF THIS SUBDI-
 VISION,  ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE THAT THE LOCAL
 HOUSING AGENCY MAY MAKE APPLICATION FOR THE APPOINTMENT OF A RECEIVER IN
 ACCORDANCE WITH THE PROCEDURES CONTAINED IN SUCH LOCAL LAW OR ORDINANCE.
 ANY RECEIVER APPOINTED PURSUANT TO THIS PARAGRAPH SHALL  BE  AUTHORIZED,
 IN  ADDITION  TO ANY OTHER POWERS CONFERRED BY LAW, TO EFFECT COMPLIANCE
 WITH THE PROVISIONS OF THIS SUBDIVISION, SUCH LOCAL  LAW  OR  ORDINANCE,
 AND  RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY. ANY EXPENDITURES
 INCURRED BY THE RECEIVER TO EFFECT SUCH COMPLIANCE  SHALL  CONSTITUTE  A
 S. 4709                            13
 
 DEBT  OF  THE OWNER AND A LIEN UPON THE PROPERTY, AND UPON THE RENTS AND
 INCOME THEREOF, IN ACCORDANCE WITH  THE  PROCEDURES  CONTAINED  IN  SUCH
 LOCAL  LAW  OR ORDINANCE. THE LOCAL HOUSING AGENCY IN ITS DISCRETION MAY
 PROVIDE  FUNDS  TO  BE  EXPENDED  BY  THE RECEIVER, AND SUCH FUNDS SHALL
 CONSTITUTE A DEBT RECOVERABLE FROM THE OWNER IN ACCORDANCE WITH APPLICA-
 BLE LOCAL LAWS OR ORDINANCES.
   (R) AUTHORITY OF CITY TO LIMIT LOCAL LAW.   WHERE  A  CITY  ENACTS  OR
 AMENDS  A  LOCAL LAW OR ORDINANCE UNDER THIS SUBDIVISION, SUCH LOCAL LAW
 OR ORDINANCE MAY RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY, SCOPE  OR
 AMOUNT  OF  REHABILITATION PROGRAM BENEFITS UNDER THE LOCAL LAW OR ORDI-
 NANCE IN ANY MANNER, PROVIDED THAT THE LOCAL LAW OR  ORDINANCE  MAY  NOT
 GRANT  REHABILITATION  PROGRAM  BENEFITS  BEYOND  THOSE PROVIDED IN THIS
 SUBDIVISION.
   § 2. This act shall take effect immediately.