Senate Bill S5080A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5080
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 multiple dwelling law, in relation to facilitating
   conversion of commercial buildings to residential  uses  in  New  York
   city;  and  providing for the repeal of certain provisions of such law
   relating thereto (Part A); and to amend the labor  law  and  the  real
   property  tax  law,  in  relation  to authorizing exemptions from real
   property taxation of certain multiple dwellings converted from commer-
   cial use in New York city that include affordable housing (Part B)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act enacts into law major components of legislation
 necessary to facilitate the conversion of commercial buildings to  resi-
 dential  uses in New York city and  to authorize property tax exemptions
 of converted buildings that include affordable housing.  Each  component
 is  wholly  contained within a Part identified as Parts A through B. The
 effective date for each particular provision contained within such  Part
 is  set  forth  in  the last section of such Part.  Any provision in any
 section contained within a Part, including the  effective  date  of  the
 Part,  which  makes a reference to a section "of this act", when used in
 connection with that particular component, shall be deemed to  mean  and
 refer  to  the  corresponding  section of the Part in which it is found.
 Section three of this act sets forth the general effective date of  this
 act.
 
                                  PART A
 
   Section  1.  Subdivision 11 of section 3 of the multiple dwelling law,
 as amended by chapter 806 of the laws of 1972, is  amended  to  read  as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09278-03-3
              

 S. 5080                             2
 
   11. Notwithstanding any other provision of this section, the following
 enumerated articles, sections and subdivisions of sections of this chap-
 ter shall not apply to the construction or alteration of multiple dwell-
 ings  for  which  an  application for a permit is made to the department
 after  December  sixth,  nineteen  hundred sixty-nine in a city having a
 population of one million or more [which adopts  or  has  adopted  local
 laws,  ordinances,  resolutions or regulations providing protection from
 fire  hazards  and  making  provision  for  escape  from  fire  in   the
 construction  and alteration of multiple dwellings and in other respects
 as protective as local law seventy-six of the laws of the  city  of  New
 York  for  nineteen  hundred  sixty-eight  and covering the same subject
 matter as the following]: subdivisions twenty-five, twenty-seven,  twen-
 ty-eight,  thirty-five-c,  thirty-six  and  thirty-nine of section four,
 subdivision three of section twenty-eight, sections thirty-six,  thirty-
 seven,  fifty,  fifty-one,  fifty-two,  fifty-three,  fifty-five, sixty,
 sixty-one, sixty-seven, subdivisions one, two, four and five of  section
 seventy-five,  article four, article five, article five-A[,] AND article
 six [and article seven-B]; except that after  December  sixth,  nineteen
 hundred  sixty-nine  where a multiple dwelling erected prior to December
 sixth, nineteen hundred sixty-nine is altered,  or  a  building  erected
 prior  to  December sixth, nineteen hundred sixty-nine is converted to a
 multiple dwelling pursuant to a permit applied  for  to  the  department
 having  jurisdiction,  the foregoing articles, sections and subdivisions
 of sections shall remain applicable where  a  local  law  of  such  city
 authorizes  such  alteration  or conversion to be made, at the option of
 the owner, either in accordance with the requirements  of  the  building
 law  and  regulations  in  effect  in such city prior to December sixth,
 nineteen hundred sixty-eight or the requirements of the building law and
 regulations in effect after such date, and the owner  elects  to  comply
 with  the  requirements  of  the  building law and regulations in effect
 prior to December sixth, nineteen hundred sixty-eight.
   § 2. Section 275 of the multiple dwelling law, as added by chapter 734
 of the laws of 1985, is amended to read as follows:
   § 275. Legislative findings. It is hereby declared and found  that  in
 cities  with  a  population  in  excess of one million, large numbers of
 loft, manufacturing, commercial,  institutional,  public  and  community
 facility  buildings  have  lost,  and continue to lose, their tenants to
 more modern premises; and that the untenanted portions of such buildings
 constitute a potential housing stock within such cities which  is  capa-
 ble,  when  appropriately  altered, of accommodating general residential
 use, thereby contributing to an alleviation of the housing shortage most
 severely affecting moderate and middle income families, and of  accommo-
 dating  joint  living-work quarters for artists by making readily avail-
 able space which is physically and  economically  suitable  for  use  by
 persons regularly engaged in the arts.
   There is a public purpose to be served by making accommodations readi-
 ly  available for joint living-work quarters for artists for the follow-
 ing reasons:   persons regularly engaged  in  the  arts  require  larger
 amounts of space for the pursuit of their artistic endeavors and for the
 storage  of  the materials therefor and of the products thereof than are
 regularly to be found in dwellings subject to  this  article;  that  the
 financial  remunerations  to be obtained from pursuit of a career in the
 arts are generally small; that as a result  of  such  limited  financial
 remuneration  persons  regularly  engaged  in the arts generally find it
 financially impossible to maintain quarters for  the  pursuit  of  their
 artistic  endeavors  separate  and apart from their places of residence;
 S. 5080                             3
 
 that the cultural life of cities of more than one million persons within
 this state and of the state as a whole is enhanced by the  residence  in
 such  cities  of large numbers of persons regularly engaged in the arts;
 that  the  high  cost  of  land within such cities makes it particularly
 difficult for persons regularly engaged in the arts to obtain the use of
 the amounts of space required for their work as aforesaid; and that  the
 residential  use  of  the space is secondary or accessory to the primary
 use as a place of work.
   It is further declared that the legislation governing  the  alteration
 of  such buildings to accommodate general residential use must of neces-
 sity be more restrictive  than  statutes  heretofore  in  effect,  which
 affected only joint living-work quarters for artists.
   It  is the intention of this legislation to promulgate statewide mini-
 mum standards for all alterations of non-residential buildings to  resi-
 dential  use,  but  the  legislature  is  cognizant that the use of such
 buildings for residential purposes must be consistent with local  zoning
 ordinances.  The  legislature  further recognizes that it is the role of
 localities to adopt regulations which will define in further detail  the
 manner  in  which alterations should be carried out where building types
 and conditions are peculiar to their local  environment.  IT  IS  HEREBY
 ADDITIONALLY  DECLARED  AND  FOUND  THAT  IN CITIES WITH A POPULATION IN
 EXCESS OF ONE MILLION, LARGE NUMBERS OF COMMERCIAL BUILDINGS HAVE  LOST,
 AND  CONTINUE  TO LOSE, THEIR TENANTS TO MORE MODERN PREMISES AND TO THE
 CHANGING NATURE OF REMOTE OFFICE  WORK  IN  THE  WAKE  OF  THE  COVID-19
 PANDEMIC;  AND THAT THE UNTENANTED PORTIONS OF SUCH BUILDINGS CONSTITUTE
 A POTENTIAL HOUSING STOCK WITHIN SUCH  CITIES  WHICH  IS  CAPABLE,  WHEN
 APPROPRIATELY ALTERED, OF ACCOMMODATING GENERAL RESIDENTIAL USE, THEREBY
 CONTRIBUTING TO AN ALLEVIATION OF THE HOUSING SHORTAGE.
   §  3.  Section 276 of the multiple dwelling law, as amended by chapter
 420 of the laws of 2022, is amended to read as follows:
   § 276. [Definition of an artist] DEFINITIONS. As used in this article,
 the FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. THE word "artist" means a person who is regularly  engaged  in  the
 fine  arts, such as painting and sculpture or in the performing or crea-
 tive arts, including choreography and filmmaking, or in the  composition
 of  music  on  a  professional  basis,  and  is so certified by the city
 department of cultural affairs and/or state council  on  the  arts.  For
 joint  living-work quarters for artists limited to artists' occupancy by
 local zoning resolution, any permanent occupant whose residence  therein
 began  on or before December fifteenth, two thousand twenty-one shall be
 deemed to meet such occupancy requirements under the same rights  as  an
 artist so certified in accordance with applicable law.
   2.  THE TERM "GENERAL RESIDENTIAL PURPOSES" MEANS USE OF A BUILDING AS
 A CLASS A MULTIPLE DWELLING, EXCEPT THAT SUCH TERM SHALL NOT  INCLUDE  A
 ROOMING UNIT AS DEFINED IN SECTION 27-2004 OF THE ADMINISTRATIVE CODE OF
 THE  CITY  OF NEW YORK OTHER THAN A ROOMING UNIT IN A CLASS A OR CLASS B
 MULTIPLE DWELLING THAT IS AUTHORIZED PURSUANT TO SECTION 27-2077 OF SUCH
 ADMINISTRATIVE CODE.
   § 4. The multiple dwelling law is amended by adding a new section  279
 to read as follows:
   §  279.  OCCUPANCY  OF COMMERCIAL BUILDINGS. 1. ANY BUILDING IN A CITY
 WITH A POPULATION OF ONE MILLION OR MORE PERSONS WHICH WAS OCCUPIED  FOR
 LOFT,  COMMERCIAL, INSTITUTIONAL, PUBLIC, COMMUNITY FACILITY OR MANUFAC-
 TURING PURPOSES AT ANY TIME PRIOR  TO  DECEMBER  THIRTY-FIRST,  NINETEEN
 HUNDRED  NINETY, MAY BE OCCUPIED, IN WHOLE OR IN PART, FOR GENERAL RESI-
 DENTIAL PURPOSES IF SUCH OCCUPANCY IS IN COMPLIANCE WITH  THIS  ARTICLE,
 S. 5080                             4
 
 NOTWITHSTANDING  ANY  OTHER ARTICLE OF THIS CHAPTER, OR ANY PROVISION OF
 LAW COVERING THE SAME SUBJECT MATTER, EXCEPT AS  OTHERWISE  REQUIRED  BY
 THE ZONING RESOLUTION OF SUCH CITY.
   2.  OCCUPANCY  PURSUANT TO THIS SECTION SHALL BE PERMITTED ONLY IF THE
 CONDITIONS IN SUBDIVISIONS ONE THROUGH SIXTEEN OF  SECTION  TWO  HUNDRED
 SEVENTY-SEVEN OF THIS ARTICLE ARE COMPLIED WITH, EXCEPT THAT THE CONVER-
 SION  SHALL  NOT  BE  REQUIRED TO INCLUDE JOINT LIVING-WORK QUARTERS FOR
 ARTISTS, AND PROVIDED FURTHER THAT CONVERSIONS  UNDERTAKEN  PURSUANT  TO
 THIS  SECTION SHALL NOT BE SUBJECT TO SUBDIVISION THREE OF SECTION TWEN-
 TY-SIX OF THIS CHAPTER.
   3. NOTWITHSTANDING ANY  STATE  OR  LOCAL  LAW,  RULE,  OR  REGULATION,
 INCLUDING  ANY OTHER PROVISION OF THIS SECTION OR ARTICLE TO THE CONTRA-
 RY, THE PROVISIONS OF THIS SECTION SHALL APPLY TO ANY  BUILDING  LOCATED
 IN  A  DISTRICT THAT OTHERWISE WOULD HAVE BEEN SUBJECT TO THE PROVISIONS
 OF SECTION 15-01 OF THE ZONING RESOLUTION OF A CITY WITH A POPULATION OF
 ONE MILLION OR MORE PERSONS.
   § 5. An application for conversion  of  a  building  pursuant  to  the
 provisions  of  this  act,  which  application  for  a permit containing
 complete plans and specifications is filed prior to December  31,  2030,
 shall  be permitted to proceed as if subdivision 3 of section 279 of the
 multiple dwelling law, as added by section four of this act, remained in
 effect, so long as construction of such project begins within the earli-
 er to occur of three years from December 31, 2030 or such time which the
 permit otherwise expires.
   § 6. This act shall take effect immediately; provided,  however,  that
 subdivision  3  of  section 279 of the multiple dwelling law as added by
 section four of this act shall expire and be deemed repealed on December
 31, 2030; provided further, however, that the repeal of subdivision 3 of
 section 279 of the multiple dwelling law as added  by  section  four  of
 this  act  shall not affect the use of any building for general residen-
 tial purposes, as such term is defined in article 7-B  of  the  multiple
 dwelling law, permitted prior to such repeal.
 
                                  PART B
 
   Section  1. Paragraph a of subdivision 3 of section 224-a of the labor
 law, as added by section 1 of part FFF of chapter  58  of  the  laws  of
 2020, is amended to read as follows:
   a.  Benefits  under  section four hundred twenty-one-a OR FOUR HUNDRED
 SIXTY-SEVEN-M of the real property tax law;
   § 2. The real property tax law is amended  by  adding  a  new  section
 467-m to read as follows:
   § 467-M. EXEMPTION FROM LOCAL REAL PROPERTY TAXATION OF CERTAIN MULTI-
 PLE  DWELLINGS IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE.  1.
 DEFINITIONS. FOR PURPOSES OF THIS SECTION,  THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   A. "AFFORDABLE HOUSING FROM COMMERCIAL CONVERSIONS TAX INCENTIVE BENE-
 FITS" HEREINAFTER REFERRED TO AS "AHCC PROGRAM BENEFITS", SHALL MEAN THE
 EXEMPTION  FROM  REAL  PROPERTY  TAXATION  AUTHORIZED  PURSUANT  TO THIS
 SECTION.
   B. "AFFORDABILITY REQUIREMENT" SHALL MEAN  THAT  WITHIN  ANY  ELIGIBLE
 MULTIPLE  DWELLING:  (I)  NOT  LESS  THAN TWENTY PERCENT OF THE DWELLING
 UNITS ARE AFFORDABLE HOUSING UNITS; (II) NOT LESS THAN FIVE  PERCENT  OF
 THE DWELLING UNITS ARE AFFORDABLE HOUSING FORTY PERCENT UNITS; (III) THE
 WEIGHTED  AVERAGE  OF ALL INCOME BANDS FOR ALL OF THE AFFORDABLE HOUSING
 UNITS DOES NOT  EXCEED  SEVENTY  PERCENT  OF  THE  AREA  MEDIAN  INCOME,
 S. 5080                             5
 
 ADJUSTED FOR FAMILY SIZE; (IV) THERE ARE NO MORE THAN THREE INCOME BANDS
 FOR  ALL  OF  THE  AFFORDABLE  HOUSING UNITS; AND (V) NO INCOME BAND FOR
 AFFORDABLE HOUSING UNITS EXCEEDS ONE HUNDRED PERCENT OF THE AREA  MEDIAN
 INCOME, ADJUSTED FOR FAMILY SIZE.
   C.  "AFFORDABLE HOUSING FORTY PERCENT UNIT" SHALL MEAN A DWELLING UNIT
 THAT: (I) IS SITUATED WITHIN THE ELIGIBLE MULTIPLE  DWELLING  FOR  WHICH
 AHCC PROGRAM BENEFITS ARE GRANTED; AND (II) UPON INITIAL RENTAL AND UPON
 EACH  SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE RESTRICTION PERI-
 OD, IS AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR FAMI-
 LIES WHOSE HOUSEHOLD INCOME DOES NOT EXCEED FORTY PERCENT  OF  THE  AREA
 MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, AT THE TIME THAT SUCH HOUSEHOLD
 INITIALLY OCCUPIES SUCH DWELLING UNIT.
   D.  "AFFORDABLE HOUSING UNIT" SHALL MEAN, COLLECTIVELY AND INDIVIDUAL-
 LY: (I) AN AFFORDABLE HOUSING FORTY PERCENT UNIT;  AND  (II)  ANY  OTHER
 UNIT THAT MEETS THE AFFORDABILITY REQUIREMENT UPON INITIAL OCCUPANCY AND
 UPON  EACH  SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE RESTRICTION
 PERIOD, AND IS AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY  INDIVIDUALS
 OR  FAMILIES  WHOSE  HOUSEHOLD  INCOME  DOES NOT EXCEED THE INCOME BANDS
 ESTABLISHED IN CONJUNCTION WITH SUCH AFFORDABILITY REQUIREMENT.
   E. "AGENCY" SHALL MEAN THE NEW YORK CITY DEPARTMENT OF HOUSING PRESER-
 VATION AND DEVELOPMENT.
   F. "APPLICATION" SHALL MEAN AN APPLICATION FOR AHCC PROGRAM BENEFITS.
   G. "BUILDING SERVICE EMPLOYEE" SHALL MEAN ANY PERSON WHO IS  REGULARLY
 EMPLOYED  AT,  AND  PERFORMS WORK IN CONNECTION WITH THE CARE OR MAINTE-
 NANCE OF, AN ELIGIBLE MULTIPLE DWELLING, INCLUDING, BUT NOT LIMITED  TO,
 A WATCHMAN, GUARD, DOORMAN, BUILDING CLEANER, PORTER, HANDYMAN, JANITOR,
 GARDENER,  GROUNDSKEEPER,  ELEVATOR  OPERATOR  AND  STARTER,  AND WINDOW
 CLEANER, BUT NOT INCLUDING PERSONS REGULARLY  SCHEDULED  TO  WORK  FEWER
 THAN EIGHT HOURS PER WEEK AT SUCH ELIGIBLE MULTIPLE DWELLING.
   H.  "COMMENCEMENT  DATE"  SHALL  MEAN  THE  DATE UPON WHICH THE ACTUAL
 CONSTRUCTION OF THE ELIGIBLE CONVERSION LAWFULLY BEGINS IN GOOD FAITH.
   I. "COMPLETION DATE" SHALL MEAN THE DATE UPON WHICH THE LOCAL  DEPART-
 MENT OF BUILDINGS ISSUES THE FIRST TEMPORARY OR PERMANENT CERTIFICATE OF
 OCCUPANCY  COVERING ALL RESIDENTIAL AREAS OF AN ELIGIBLE MULTIPLE DWELL-
 ING.
   J. "CONSTRUCTION PERIOD" SHALL MEAN,  WITH  RESPECT  TO  ANY  ELIGIBLE
 MULTIPLE DWELLING, A PERIOD: (I) BEGINNING ON THE LATER OF THE COMMENCE-
 MENT  DATE OR THREE YEARS BEFORE THE COMPLETION DATE; AND (II) ENDING ON
 THE DAY PRECEDING THE COMPLETION DATE.
   K. "DWELLING" OR "DWELLINGS" SHALL HAVE THE SAME MEANING AS SET  FORTH
 IN SUBDIVISION FOUR OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   L.  "ELIGIBLE  CONVERSION" SHALL MEAN THE CONVERSION OF A NON-RESIDEN-
 TIAL BUILDING TO AN ELIGIBLE MULTIPLE DWELLING.
   M. "ELIGIBLE MULTIPLE DWELLING" SHALL  MEAN  A  MULTIPLE  DWELLING  IN
 WHICH:  (I)  ALL DWELLING UNITS INCLUDED IN ANY APPLICATION ARE OPERATED
 AS RENTAL HOUSING; (II) SIX OR MORE DWELLING  UNITS  HAVE  BEEN  CREATED
 THROUGH  AN  ELIGIBLE  CONVERSION;  (III) THE COMMENCEMENT DATE IS AFTER
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AND ON OR BEFORE DECEMBER
 THIRTY-FIRST, TWO THOUSAND THIRTY-TWO; AND (IV) THE COMPLETION  DATE  IS
 ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND THIRTY-EIGHT.
   N.  "FISCAL  OFFICER"  SHALL  MEAN  THE COMPTROLLER OR OTHER ANALOGOUS
 OFFICER IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE.
   O. "FLOOR AREA" SHALL MEAN THE HORIZONTAL AREAS OF THE SEVERAL FLOORS,
 OR ANY PORTION THEREOF, OF A DWELLING OR DWELLINGS, AND ACCESSORY STRUC-
 TURES ON A LOT MEASURED FROM THE EXTERIOR FACES OF  EXTERIOR  WALLS,  OR
 FROM THE CENTER LINE OF PARTY WALLS.
 S. 5080                             6

   P.  "INCOME  BAND"  SHALL MEAN A PERCENTAGE OF THE AREA MEDIAN INCOME,
 ADJUSTED FOR FAMILY SIZE, THAT IS A MULTIPLE OF TEN PERCENT.
   Q.  "MANHATTAN  PRIME  DEVELOPMENT  AREA"  SHALL  MEAN ANY TAX LOT NOW
 EXISTING OR HEREAFTER CREATED WHICH IS LOCATED ENTIRELY  SOUTH  OF  96TH
 STREET IN THE BOROUGH OF MANHATTAN.
   R.  "MARKET  UNIT"  SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE MULTIPLE
 DWELLING OTHER THAN AN AFFORDABLE HOUSING UNIT.
   S. "MARKETING BAND" SHALL MEAN MAXIMUM RENT AMOUNTS RANGING FROM TWEN-
 TY PERCENT TO THIRTY PERCENT OF THE AREA MEDIAN INCOME OR  INCOME  BAND,
 RESPECTIVELY, THAT IS APPLICABLE TO A SPECIFIC AFFORDABLE HOUSING UNIT.
   T.  "MULTIPLE  DWELLING"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN
 SUBDIVISION SEVEN OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   U. "NINETEEN-YEAR BENEFIT" SHALL MEAN: (I) FOR THE CONSTRUCTION  PERI-
 OD,  A  ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER
 THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;  (II)  FOR  THE  FIRST  FIFTEEN
 YEARS OF THE RESTRICTION PERIOD, (A) WITHIN THE MANHATTAN PRIME DEVELOP-
 MENT  AREA, A FIFTY PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER
 THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, AND (B) OUTSIDE OF THE  MANHAT-
 TAN  PRIME  DEVELOPMENT  AREA, A THIRTY-FIVE PERCENT EXEMPTION FROM REAL
 PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;  (III)
 FOR THE SIXTEENTH YEAR OF THE RESTRICTION PERIOD, (A) WITHIN THE MANHAT-
 TAN PRIME DEVELOPMENT AREA, A FORTY PERCENT EXEMPTION FROM REAL PROPERTY
 TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, AND (B) OUTSIDE
 OF   THE  MANHATTAN  PRIME  DEVELOPMENT  AREA,  A  TWENTY-EIGHT  PERCENT
 EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL
 IMPROVEMENTS;  (IV)  FOR THE SEVENTEENTH YEAR OF THE RESTRICTION PERIOD,
 (A) WITHIN THE  MANHATTAN  PRIME  DEVELOPMENT  AREA,  A  THIRTY  PERCENT
 EXEMPTION  FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL
 IMPROVEMENTS, AND (B) OUTSIDE OF THE MANHATTAN PRIME DEVELOPMENT AREA, A
 TWENTY-ONE PERCENT EXEMPTION FROM REAL  PROPERTY  TAXATION,  OTHER  THAN
 ASSESSMENTS  FOR  LOCAL IMPROVEMENTS; (V) FOR THE EIGHTEENTH YEAR OF THE
 RESTRICTION PERIOD, (A) WITHIN THE MANHATTAN PRIME DEVELOPMENT  AREA,  A
 TWENTY PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESS-
 MENTS  FOR  LOCAL  IMPROVEMENTS,  AND (B) OUTSIDE OF THE MANHATTAN PRIME
 DEVELOPMENT AREA, A FOURTEEN PERCENT EXEMPTION FROM REAL PROPERTY  TAXA-
 TION,  OTHER  THAN  ASSESSMENTS FOR LOCAL IMPROVEMENTS; AND (VI) FOR THE
 NINETEENTH YEAR OF THE RESTRICTION  PERIOD,  (A)  WITHIN  THE  MANHATTAN
 PRIME DEVELOPMENT AREA, A TEN PERCENT EXEMPTION FROM REAL PROPERTY TAXA-
 TION,  OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, AND (B) OUTSIDE OF
 THE MANHATTAN PRIME DEVELOPMENT AREA, A  SEVEN  PERCENT  EXEMPTION  FROM
 REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS.
   V.  "NON-RESIDENTIAL  BUILDING" SHALL MEAN A STRUCTURE OR PORTION OF A
 STRUCTURE HAVING AT LEAST ONE FLOOR, A ROOF AND  AT  LEAST  THREE  WALLS
 ENCLOSING ALL OR MOST OF THE SPACE USED IN CONNECTION WITH THE STRUCTURE
 OR  PORTION  OF  THE STRUCTURE, WHICH HAS A CERTIFICATE OF OCCUPANCY FOR
 COMMERCIAL, MANUFACTURING OR OTHER NON-RESIDENTIAL USE FOR NOT LESS THAN
 NINETY PERCENT OF THE AGGREGATE FLOOR AREA OF SUCH STRUCTURE OR  PORTION
 OF  SUCH  STRUCTURE,  OR  OTHER  PROOF OF SUCH NON-RESIDENTIAL USE AS IS
 ACCEPTABLE TO THE AGENCY.
   W. "NON-RESIDENTIAL TAX LOT" SHALL  MEAN  A  TAX  LOT  THAT  DOES  NOT
 CONTAIN ANY DWELLING UNITS.
   X.  "RENT STABILIZATION" SHALL MEAN, COLLECTIVELY, THE RENT STABILIZA-
 TION 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 SECTION OR AS AMENDED THERE-
 S. 5080                             7
 
 AFTER, TOGETHER WITH ANY SUCCESSOR STATUTES  OR  REGULATIONS  ADDRESSING
 SUBSTANTIALLY THE SAME SUBJECT MATTER.
   Y.  "RESIDENTIAL  TAX LOT" SHALL MEAN A TAX LOT THAT CONTAINS DWELLING
 UNITS.
   Z.  "RESTRICTION  PERIOD"  SHALL  MEAN  A  PERIOD  COMMENCING  ON  THE
 COMPLETION DATE AND EXTENDING IN PERPETUITY, NOTWITHSTANDING ANY EARLIER
 TERMINATION OR REVOCATION OF AHCC PROGRAM BENEFITS.
   2.  BENEFIT.  IN  CITIES  HAVING  A POPULATION OF ONE MILLION OR MORE,
 NOTWITHSTANDING THE PROVISIONS OF ANY OTHER GENERAL,  SPECIAL  OR  LOCAL
 LAW  TO  THE CONTRARY, A NEW ELIGIBLE MULTIPLE DWELLING, EXCEPT A HOTEL,
 THAT COMPLIES WITH THE PROVISIONS OF THIS SECTION SHALL BE  EXEMPT  FROM
 REAL  PROPERTY  TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS,
 IN THE AMOUNTS AND FOR THE PERIODS SPECIFIED IN THIS  SECTION,  PROVIDED
 THAT  SUCH  ELIGIBLE  MULTIPLE  DWELLING IS USED OR HELD OUT FOR USE FOR
 DWELLING PURPOSES. AN ELIGIBLE MULTIPLE DWELLING THAT MEETS ALL  OF  THE
 REQUIREMENTS OF THIS SECTION SHALL RECEIVE A NINETEEN-YEAR BENEFIT.
   3.  TAX PAYMENTS. IN ADDITION TO ANY OTHER AMOUNTS PAYABLE PURSUANT TO
 THIS SECTION, THE OWNER OF ANY ELIGIBLE MULTIPLE DWELLING RECEIVING AHCC
 PROGRAM BENEFITS SHALL PAY, IN EACH TAX YEAR IN WHICH SUCH AHCC  PROGRAM
 BENEFITS ARE IN EFFECT, ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
   4.  LIMITATION ON BENEFITS FOR NON-RESIDENTIAL SPACE. IF THE AGGREGATE
 FLOOR AREA OF COMMERCIAL, COMMUNITY FACILITY AND ACCESSORY USE SPACE  IN
 AN  ELIGIBLE  MULTIPLE  DWELLING EXCEEDS TWELVE PERCENT OF THE AGGREGATE
 FLOOR AREA IN SUCH ELIGIBLE MULTIPLE DWELLING, ANY AHCC PROGRAM BENEFITS
 SHALL BE REDUCED BY A PERCENTAGE EQUAL TO SUCH EXCESS.  IF  AN  ELIGIBLE
 MULTIPLE  DWELLING  CONTAINS  MULTIPLE  TAX LOTS, THE TAX ARISING OUT OF
 SUCH REDUCTION IN AHCC PROGRAM BENEFITS SHALL FIRST BE  APPORTIONED  PRO
 RATA  AMONG ANY NON-RESIDENTIAL TAX LOTS. AFTER ANY SUCH NON-RESIDENTIAL
 TAX LOTS ARE FULLY TAXABLE, THE REMAINDER OF THE TAX ARISING OUT OF SUCH
 REDUCTION IN AHCC PROGRAM BENEFITS, IF ANY,  SHALL  BE  APPORTIONED  PRO
 RATA  AMONG THE REMAINING RESIDENTIAL TAX LOTS. FOR THE PURPOSES OF THIS
 SECTION, ACCESSORY USE SPACE SHALL NOT INCLUDE HOME OCCUPATION SPACE  OR
 ACCESSORY  PARKING  SPACE  LOCATED NOT MORE THAN TWENTY-THREE FEET ABOVE
 THE CURB LEVEL.
   5. APPLICATION OF BENEFIT. BASED ON THE CERTIFICATION  OF  THE  AGENCY
 CERTIFYING  ELIGIBILITY  FOR  AHCC  PROGRAM  BENEFITS, THE DEPARTMENT OF
 FINANCE SHALL DETERMINE THE AMOUNT OF THE EXEMPTION PURSUANT TO SUBDIVI-
 SIONS TWO AND FOUR OF THIS SECTION AND SHALL APPLY THE EXEMPTION TO  THE
 ASSESSED VALUE OF THE ELIGIBLE MULTIPLE DWELLING.
   6.  AFFORDABILITY  REQUIREMENTS.  AN  ELIGIBLE MULTIPLE DWELLING SHALL
 COMPLY  WITH  THE  FOLLOWING  AFFORDABILITY  REQUIREMENTS   DURING   THE
 RESTRICTION PERIOD:
   A. ALL AFFORDABLE HOUSING UNITS IN AN ELIGIBLE MULTIPLE DWELLING SHALL
 SHARE  THE  SAME COMMON ENTRANCES AND COMMON AREAS AS RENTAL MARKET RATE
 UNITS IN SUCH ELIGIBLE MULTIPLE DWELLING AND SHALL NOT BE ISOLATED TO  A
 SPECIFIC  FLOOR  OR  AREA  OF  AN  ELIGIBLE  MULTIPLE  DWELLING.  COMMON
 ENTRANCES SHALL MEAN ANY MEANS OF INGRESS OR EGRESS  REGULARLY  USED  BY
 ANY  RESIDENT  OF A RENTAL DWELLING UNIT IN THE ELIGIBLE MULTIPLE DWELL-
 ING.
   B. UNLESS PREEMPTED BY THE REQUIREMENTS OF A FEDERAL, STATE  OR  LOCAL
 HOUSING PROGRAM, EITHER: (I) THE AFFORDABLE HOUSING UNITS IN AN ELIGIBLE
 MULTIPLE  DWELLING  SHALL  HAVE  A  UNIT  MIX PROPORTIONAL TO THE RENTAL
 MARKET UNITS; OR (II) AT LEAST FIFTY PERCENT OF THE  AFFORDABLE  HOUSING
 UNITS  IN  AN ELIGIBLE MULTIPLE DWELLING SHALL HAVE TWO OR MORE BEDROOMS
 AND NO MORE THAN TWENTY-FIVE PERCENT OF  THE  AFFORDABLE  HOUSING  UNITS
 SHALL HAVE LESS THAN ONE BEDROOM.
 S. 5080                             8
 
   C.  NOTWITHSTANDING ANY PROVISION OF RENT STABILIZATION TO THE CONTRA-
 RY: (I) ALL AFFORDABLE HOUSING UNITS SHALL REMAIN FULLY SUBJECT TO  RENT
 STABILIZATION  DURING  THE  RESTRICTION  PERIOD; AND (II) ANY AFFORDABLE
 HOUSING UNIT OCCUPIED BY A TENANT THAT HAS BEEN APPROVED BY  THE  AGENCY
 PRIOR TO THE AGENCY'S DENIAL OF AN ELIGIBLE MULTIPLE DWELLING'S APPLICA-
 TION  FOR  AHCC PROGRAM BENEFITS SHALL REMAIN SUBJECT TO RENT STABILIZA-
 TION UNTIL SUCH TENANT VACATES SUCH AFFORDABLE HOUSING UNIT.
   D. ALL RENT STABILIZATION REGISTRATIONS REQUIRED  TO  BE  FILED  SHALL
 CONTAIN  A  DESIGNATION  THAT SPECIFICALLY IDENTIFIES AFFORDABLE HOUSING
 UNITS CREATED PURSUANT TO THIS SECTION AS "AHCC PROGRAM AFFORDABLE HOUS-
 ING UNITS" AND SHALL CONTAIN AN EXPLANATION  OF  THE  REQUIREMENTS  THAT
 APPLY TO ALL SUCH AFFORDABLE HOUSING UNITS.
   E.  FAILURE  TO  COMPLY  WITH  THE PROVISIONS OF THIS SUBDIVISION THAT
 REQUIRE THE CREATION, MAINTENANCE, RENT  STABILIZATION  COMPLIANCE,  AND
 OCCUPANCY OF AFFORDABLE HOUSING UNITS SHALL RESULT IN REVOCATION OF AHCC
 PROGRAM BENEFITS.
   F.  NOTHING  IN  THIS  SECTION SHALL: (I) PROHIBIT THE OCCUPANCY OF AN
 AFFORDABLE HOUSING UNIT BY INDIVIDUALS OR FAMILIES WHOSE INCOME  AT  ANY
 TIME  IS  LESS  THAN THE MAXIMUM PERCENTAGE OF THE AREA MEDIAN INCOME OR
 INCOME BAND, AS APPLICABLE, ADJUSTED FOR FAMILY SIZE, SPECIFIED FOR SUCH
 AFFORDABLE HOUSING UNIT PURSUANT TO THIS SECTION; OR (II)  PROHIBIT  THE
 OWNER  OF  AN  ELIGIBLE  MULTIPLE  DWELLING FROM REQUIRING, UPON INITIAL
 RENTAL OR UPON ANY RENTAL FOLLOWING A  VACANCY,  THE  OCCUPANCY  OF  ANY
 AFFORDABLE HOUSING UNIT BY SUCH LOWER INCOME INDIVIDUALS OR FAMILIES.
   G. FOLLOWING ISSUANCE OF A TEMPORARY CERTIFICATE OF OCCUPANCY AND UPON
 EACH  VACANCY  THEREAFTER,  AN AFFORDABLE HOUSING UNIT SHALL PROMPTLY BE
 OFFERED FOR RENTAL BY INDIVIDUALS OR  FAMILIES  WHOSE  INCOME  DOES  NOT
 EXCEED  THE MAXIMUM PERCENTAGE OF THE AREA MEDIAN INCOME OR INCOME BAND,
 AS APPLICABLE, ADJUSTED FOR FAMILY SIZE, SPECIFIED FOR  SUCH  AFFORDABLE
 HOUSING  UNIT  PURSUANT  TO  THIS  SECTION AND WHO INTEND TO OCCUPY SUCH
 AFFORDABLE HOUSING UNIT AS THEIR PRIMARY RESIDENCE. AN AFFORDABLE  HOUS-
 ING UNIT SHALL NOT BE: (I) RENTED TO A CORPORATION, PARTNERSHIP OR OTHER
 ENTITY;  OR (II) HELD OFF THE MARKET FOR A PERIOD LONGER THAN IS REASON-
 ABLY NECESSARY TO PERFORM REPAIRS NEEDED TO MAKE SUCH AFFORDABLE HOUSING
 UNIT AVAILABLE FOR OCCUPANCY.
   H. AN AFFORDABLE HOUSING UNIT SHALL NOT  BE  RENTED  ON  A  TEMPORARY,
 TRANSIENT  OR  SHORT-TERM BASIS.  EVERY LEASE AND RENEWAL THEREOF FOR AN
 AFFORDABLE HOUSING UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT  THE
 OPTION OF THE TENANT.
   I. AN AFFORDABLE HOUSING UNIT SHALL NOT BE CONVERTED TO COOPERATIVE OR
 CONDOMINIUM OWNERSHIP.
   J.  THE  AGENCY  MAY ESTABLISH BY RULE SUCH REQUIREMENTS AS THE AGENCY
 DEEMS NECESSARY OR APPROPRIATE FOR:  (I)  THE  MARKETING  OF  AFFORDABLE
 HOUSING  UNITS,  BOTH  UPON INITIAL OCCUPANCY AND UPON ANY VACANCY; (II)
 MONITORING COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION; AND (III)
 THE ESTABLISHMENT OF MARKETING BANDS FOR AFFORDABLE HOUSING UNITS.  SUCH
 REQUIREMENTS  MAY INCLUDE, BUT NEED NOT BE LIMITED TO, RETAINING A MONI-
 TOR APPROVED BY THE AGENCY AND PAID FOR BY THE  OWNER  OF  THE  ELIGIBLE
 MULTIPLE DWELLING.
   K.  NOTWITHSTANDING  ANY  PROVISION OF THIS SECTION TO THE CONTRARY, A
 MARKET UNIT SHALL NOT BE SUBJECT TO RENT STABILIZATION  UNLESS,  IN  THE
 ABSENCE  OF  AHCC  PROGRAM  BENEFITS,  THE UNIT WOULD BE SUBJECT TO RENT
 STABILIZATION.
   7. BUILDING SERVICE EMPLOYEES. A. FOR THE PURPOSES  OF  THIS  SUBDIVI-
 SION, "APPLICANT" SHALL MEAN AN APPLICANT FOR AHCC PROGRAM BENEFITS, ANY
 SUCCESSOR TO SUCH APPLICANT, OR ANY EMPLOYER OF BUILDING SERVICE EMPLOY-
 S. 5080                             9

 EES FOR SUCH APPLICANT INCLUDING, BUT NOT LIMITED TO, A PROPERTY MANAGE-
 MENT COMPANY OR CONTRACTOR.
   B.  ALL  BUILDING  SERVICE  EMPLOYEES EMPLOYED BY THE APPLICANT AT THE
 ELIGIBLE MULTIPLE DWELLING SHALL RECEIVE THE APPLICABLE PREVAILING  WAGE
 FOR  THE  DURATION  OF  THE  NINETEEN-YEAR BENEFIT PERIOD, REGARDLESS OF
 WHETHER SUCH BENEFITS ARE REVOKED OR TERMINATED.
   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  IN  MAKING  SUCH INVESTIGATION, THE FISCAL OFFICER MAY UTILIZE WAGE
 AND FRINGE BENEFIT DATA FROM VARIOUS SOURCES, INCLUDING, BUT NOT LIMITED
 TO, DATA AND DETERMINATIONS OF  FEDERAL,  STATE  OR  OTHER  GOVERNMENTAL
 AGENCIES; PROVIDED, HOWEVER, THAT THE PROVISION OF A DWELLING UNIT SHALL
 NOT  BE  CONSIDERED  WAGES  OR  A  FRINGE BENEFIT; (II) TO INSTITUTE AND
 CONDUCT INSPECTIONS AT THE SITE OF THE WORK OR ELSEWHERE; (III) TO EXAM-
 INE 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  SUBPOENAS,  THE
 ENFORCEMENT  OF  WHICH  SHALL BE REGULATED BY THE CIVIL PRACTICE LAW AND
 RULES, ADMINISTER OATHS AND EXAMINE WITNESSES; (V) TO MAKE A CLASSIFICA-
 TION BY CRAFT, TRADE OR OTHER GENERALLY RECOGNIZED OCCUPATIONAL CATEGORY
 OF THE BUILDING SERVICE EMPLOYEES AND TO DETERMINE WHETHER SUCH WORK HAS
 BEEN PERFORMED BY THE BUILDING SERVICE EMPLOYEES IN SUCH CLASSIFICATION;
 (VI) TO REQUIRE THE APPLICANT TO FILE WITH THE FISCAL OFFICER  A  RECORD
 OF  THE  WAGES  ACTUALLY  PAID BY SUCH APPLICANT TO THE BUILDING SERVICE
 EMPLOYEES AND OF THEIR HOURS OF WORK; (VII) TO DELEGATE ANY OF THE FORE-
 GOING POWERS TO HIS OR HER DEPUTY OR  OTHER  AUTHORIZED  REPRESENTATIVE;
 (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  SUBDIVISION;  AND  (IX)  TO
 PRESCRIBE   APPROPRIATE   SANCTIONS  FOR  FAILURE  TO  COMPLY  WITH  THE
 PROVISIONS OF THIS SUBDIVISION. FOR EACH VIOLATION  OF  PARAGRAPH  B  OF
 THIS SUBDIVISION, THE FISCAL OFFICER MAY REQUIRE THE PAYMENT OF (A) BACK
 WAGES  AND FRINGE BENEFITS; (B) LIQUIDATED DAMAGES UP TO THREE TIMES THE
 AMOUNT OF THE BACK WAGES AND FRINGE  BENEFITS  FOR  WILLFUL  VIOLATIONS;
 AND/OR  (C) REASONABLE ATTORNEYS' FEES. IF THE FISCAL OFFICER FINDS THAT
 THE APPLICANT HAS FAILED TO COMPLY WITH THE PROVISIONS OF THIS  SUBDIVI-
 SION,  HE  OR  SHE  SHALL PRESENT EVIDENCE OF SUCH NON-COMPLIANCE TO THE
 AGENCY.
   D. PARAGRAPH B OF THIS SUBDIVISION SHALL NOT BE APPLICABLE TO:  (I) AN
 ELIGIBLE MULTIPLE DWELLING CONTAINING LESS THAN THIRTY  DWELLING  UNITS;
 OR  (II)  AN  ELIGIBLE  MULTIPLE  DWELLING  WHOSE ELIGIBLE CONVERSION IS
 CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF GRANTS, LOANS  OR  SUBSI-
 DIES  PROVIDED  BY  A  FEDERAL,  STATE  OR  LOCAL GOVERNMENTAL AGENCY OR
 INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE DEVELOPMENT OF  AFFORDABLE
 HOUSING.
   E.  THE  APPLICANT SHALL SUBMIT A SWORN AFFIDAVIT WITH ITS APPLICATION
 CERTIFYING THAT IT SHALL COMPLY WITH THE REQUIREMENTS OF  THIS  SUBDIVI-
 SION  OR  IS  EXEMPT IN ACCORDANCE WITH PARAGRAPH D OF THIS SUBDIVISION.
 UPON THE AGENCY'S APPROVAL OF SUCH APPLICATION, THE APPLICANT WHO IS NOT
 EXEMPT IN ACCORDANCE WITH PARAGRAPH D OF THIS SUBDIVISION  SHALL  SUBMIT
 ANNUALLY  A  SWORN  AFFIDAVIT  TO  THE FISCAL OFFICER CERTIFYING THAT IT
 SHALL COMPLY WITH THE REQUIREMENTS OF THIS SUBDIVISION.
 S. 5080                            10
 
   8. CONCURRENT EXEMPTIONS OR ABATEMENTS. AN ELIGIBLE MULTIPLE  DWELLING
 RECEIVING  AHCC PROGRAM BENEFITS SHALL NOT RECEIVE ANY EXEMPTION FROM OR
 ABATEMENT OF REAL PROPERTY TAXATION UNDER ANY OTHER LAW.
   9.   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 AHCC
 PROGRAM BENEFITS UNLESS  THE  AGENCY  AUTHORIZES  SUCH  RENUNCIATION  OR
 TERMINATION  IN  CONNECTION  WITH  THE  COMMENCEMENT  OF A TAX EXEMPTION
 PURSUANT TO THE PRIVATE HOUSING FINANCE  LAW  OR  SECTION  FOUR  HUNDRED
 TWENTY-C OF THIS TITLE.
   10. TERMINATION OR REVOCATION. THE AGENCY MAY TERMINATE OR REVOKE AHCC
 PROGRAM BENEFITS FOR NONCOMPLIANCE WITH THIS SECTION. ALL OF THE AFFORD-
 ABLE  HOUSING  UNITS  SHALL REMAIN SUBJECT TO RENT STABILIZATION AND ALL
 OTHER REQUIREMENTS OF THIS SECTION FOR THE DURATION OF  THE  RESTRICTION
 PERIOD,  REGARDLESS  OF  WHETHER  SUCH  BENEFITS HAVE BEEN TERMINATED OR
 REVOKED.
   11. POWERS CUMULATIVE. THE  ENFORCEMENT  PROVISIONS  OF  THIS  SECTION
 SHALL  NOT  BE EXCLUSIVE, AND ARE IN ADDITION TO ANY OTHER RIGHTS, REME-
 DIES OR ENFORCEMENT POWERS SET FORTH IN ANY OTHER LAW  OR  AVAILABLE  AT
 LAW OR IN EQUITY.
   12.  MULTIPLE  TAX  LOTS.  IF  AN  ELIGIBLE MULTIPLE DWELLING CONTAINS
 MULTIPLE TAX LOTS, AN APPLICATION MAY BE SUBMITTED WITH RESPECT  TO  ONE
 OR  MORE  OF  SUCH  TAX LOTS. THE AGENCY SHALL DETERMINE ELIGIBILITY FOR
 AHCC PROGRAM BENEFITS BASED UPON THE TAX LOTS INCLUDED IN SUCH  APPLICA-
 TION  AND  BENEFITS  FOR  EACH  SUCH ELIGIBLE MULTIPLE DWELLING SHALL BE
 BASED UPON THE COMPLETION DATE OF EACH SUCH MULTIPLE DWELLING.
   13. APPLICATIONS. A. THE APPLICATION  WITH  RESPECT  TO  ANY  ELIGIBLE
 MULTIPLE  DWELLING  SHALL  BE  FILED WITH THE AGENCY NO EARLIER THAN THE
 COMPLETION DATE AND NOT LATER THAN ONE YEAR AFTER THE COMPLETION DATE OF
 SUCH ELIGIBLE MULTIPLE DWELLING.
   B. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL,  SPECIAL,  OR  LOCAL
 LAW TO THE CONTRARY, THE AGENCY MAY REQUIRE BY RULE THAT APPLICATIONS BE
 FILED ELECTRONICALLY.
   C.  THE  AGENCY  MAY RELY ON CERTIFICATION BY AN ARCHITECT OR ENGINEER
 SUBMITTED BY AN APPLICANT IN CONNECTION WITH THE FILING OF  AN  APPLICA-
 TION.  A  FALSE  CERTIFICATION  BY  SUCH  ARCHITECT OR ENGINEER SHALL BE
 DEEMED TO BE PROFESSIONAL  MISCONDUCT  PURSUANT  TO  SECTION  SIXTY-FIVE
 HUNDRED  NINE  OF  THE  EDUCATION LAW.   ANY ARCHITECT OR ENGINEER 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  EDUCA-
 TION  LAW  AND  SHALL THEREAFTER BE INELIGIBLE TO SUBMIT A CERTIFICATION
 PURSUANT TO THIS SECTION.
   D. SUCH APPLICATION SHALL ALSO CERTIFY THAT ALL TAXES, WATER  CHARGES,
 AND  SEWER  RENTS  CURRENTLY  DUE AND OWING ON THE PROPERTY WHICH IS THE
 SUBJECT OF THE APPLICATION HAVE BEEN PAID OR ARE CURRENTLY BEING PAID IN
 TIMELY INSTALLMENTS PURSUANT TO A WRITTEN AGREEMENT WITH THE  DEPARTMENT
 OF FINANCE OR OTHER APPROPRIATE AGENCY.
   14.  FILING  FEE.  THE AGENCY MAY REQUIRE A FILING FEE OF NO LESS THAN
 THREE THOUSAND DOLLARS PER DWELLING UNIT IN CONNECTION WITH ANY APPLICA-
 TION, EXCEPT THAT THE AGENCY MAY PROMULGATE RULES:
   A. IMPOSING A LESSER FEE  FOR  AN  ELIGIBLE  MULTIPLE  DWELLING  WHOSE
 ELIGIBLE  CONVERSION  IS  CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF
 GRANTS, LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE OR LOCAL GOVERN-
 MENTAL AGENCY OR INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE  DEVELOP-
 MENT OF AFFORDABLE HOUSING; AND
 S. 5080                            11
 
   B.  REQUIRING  A  PORTION  OF  THE  FILING  FEE  TO  BE  PAID UPON THE
 SUBMISSION OF THE INFORMATION THE AGENCY REQUIRES IN ADVANCE OF  APPROV-
 ING  THE COMMENCEMENT OF THE MARKETING PROCESS FOR SUCH ELIGIBLE CONVER-
 SION.
   15.  RULES.  EXCEPT  AS PROVIDED IN SUBDIVISION SEVEN OF THIS SECTION,
 THE AGENCY SHALL HAVE THE SOLE AUTHORITY TO ENFORCE  THE  PROVISIONS  OF
 THIS  SECTION  AND  MAY  PROMULGATE RULES TO CARRY OUT THE PROVISIONS OF
 THIS SECTION.
   16. PENALTIES FOR VIOLATIONS OF AFFORDABILITY REQUIREMENTS. A.  ON  OR
 AFTER  THE  EXPIRATION DATE OF THE NINETEEN-YEAR BENEFIT, THE AGENCY MAY
 IMPOSE, AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD, A PENALTY  FOR  ANY
 VIOLATION BY AN ELIGIBLE MULTIPLE DWELLING OF THE AFFORDABILITY REQUIRE-
 MENTS OF SUBDIVISION SIX OF THIS SECTION.
   B.  A  PENALTY  IMPOSED  UNDER THIS SUBDIVISION SHALL BE COMPUTED AS A
 PERCENTAGE OF THE CAPITALIZED VALUE OF ALL AHCC PROGRAM BENEFITS ON  THE
 ELIGIBLE  MULTIPLE  DWELLING, CALCULATED AS OF THE FIRST YEAR THAT BENE-
 FITS WERE GRANTED, NOT TO EXCEED ONE THOUSAND PERCENT. THE AGENCY  SHALL
 ESTABLISH  A SCHEDULE AND METHOD OF CALCULATION OF SUCH PENALTIES PURSU-
 ANT TO SUBDIVISION FIFTEEN OF THIS SECTION.
   C. A PENALTY IMPOSED UNDER THIS SUBDIVISION SHALL BE  IMPOSED  AGAINST
 THE  OWNER  OF  THE ELIGIBLE MULTIPLE DWELLING AT THE TIME THE VIOLATION
 OCCURRED, EVEN IF SUCH OWNER  NO  LONGER  OWNS  SUCH  ELIGIBLE  MULTIPLE
 DWELLING AT THE TIME OF THE AGENCY'S DETERMINATION.
   D.  A  PERSON OR ENTITY WHO FAILS TO PAY A PENALTY IMPOSED PURSUANT TO
 THIS SUBDIVISION SHALL BE GUILTY OF A MISDEMEANOR PUNISHABLE  BY  IMPRI-
 SONMENT NOT TO EXCEED SIX MONTHS.
   § 3. This act shall take effect immediately.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Parts A through B of this act shall be
 as specifically set forth in the last section of such Parts.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5080--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said  committee  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the multiple dwelling law, in relation to facilitating
   conversion of commercial buildings to residential  uses  in  New  York
   city;  and  providing for the repeal of certain provisions of such law
   relating thereto (Part A); to amend the labor law and the real proper-
   ty tax law, in relation to authorizing exemptions from  real  property
   taxation  of  certain multiple dwellings converted from commercial use
   in New York city that include affordable  housing  (Part  B);  and  to
   amend  the  labor  law  and  the real property tax law, in relation to
   exemptions of eligible newly constructed rental multiple dwellings  or
   conversions  to  rental  multiple  dwellings  in  villages, towns, and
   cities other than New York city (Part C)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act enacts into law major components of legislation
 necessary to facilitate the conversion of commercial buildings to  resi-
 dential  uses in New York city and  to authorize property tax exemptions
 of converted buildings that include affordable housing.  Each  component
 is  wholly  contained within a Part identified as Parts A through C. The
 effective date for each particular provision contained within such  Part
 is  set  forth  in  the last section of such Part.  Any provision in any
 section contained within a Part, including the  effective  date  of  the
 Part,  which  makes a reference to a section "of this act", when used in
 connection with that particular component, shall be deemed to  mean  and
 refer  to  the  corresponding  section of the Part in which it is found.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09278-09-3
 S. 5080--B                          2
              

 
 Section three of this act sets forth the general effective date of  this
 act.
 
                                  PART A
 
   Section  1.  Subdivision 11 of section 3 of the multiple dwelling law,
 as amended by chapter 806 of the laws of 1972, is  amended  to  read  as
 follows:
   11. Notwithstanding any other provision of this section, the following
 enumerated articles, sections and subdivisions of sections of this chap-
 ter shall not apply to the construction or alteration of multiple dwell-
 ings  for  which  an  application for a permit is made to the department
 after December sixth, nineteen hundred sixty-nine in  a  city  having  a
 population  of  one  million  or more [which adopts or has adopted local
 laws, ordinances, resolutions or regulations providing  protection  from
 fire   hazards  and  making  provision  for  escape  from  fire  in  the
 construction and alteration of multiple dwellings and in other  respects
 as  protective  as  local law seventy-six of the laws of the city of New
 York for nineteen hundred sixty-eight  and  covering  the  same  subject
 matter  as the following]: subdivisions twenty-five, twenty-seven, twen-
 ty-eight, thirty-five-c, thirty-six and  thirty-nine  of  section  four,
 subdivision  three of section twenty-eight, sections thirty-six, thirty-
 seven, fifty,  fifty-one,  fifty-two,  fifty-three,  fifty-five,  sixty,
 sixty-one,  sixty-seven, subdivisions one, two, four and five of section
 seventy-five, article four, article five, article five-A[,] AND  article
 six  [and  article  seven-B]; except that after December sixth, nineteen
 hundred sixty-nine where a multiple dwelling erected prior  to  December
 sixth,  nineteen  hundred  sixty-nine  is altered, or a building erected
 prior to December sixth, nineteen hundred sixty-nine is converted  to  a
 multiple  dwelling  pursuant  to  a permit applied for to the department
 having jurisdiction, the foregoing articles, sections  and  subdivisions
 of  sections  shall  remain  applicable  where  a local law of such city
 authorizes such alteration or conversion to be made, at  the  option  of
 the  owner,  either  in accordance with the requirements of the building
 law and regulations in effect in such  city  prior  to  December  sixth,
 nineteen hundred sixty-eight or the requirements of the building law and
 regulations  in  effect  after such date, and the owner elects to comply
 with the requirements of the building  law  and  regulations  in  effect
 prior to December sixth, nineteen hundred sixty-eight.
   § 2. Section 275 of the multiple dwelling law, as added by chapter 734
 of the laws of 1985, is amended to read as follows:
   §  275.  Legislative findings. 1. It is hereby declared and found that
 in cities with a population in excess of one million, large  numbers  of
 loft,  manufacturing,  commercial,  institutional,  public and community
 facility buildings have lost, and continue to  lose,  their  tenants  to
 more modern premises; and that the untenanted portions of such buildings
 constitute  a  potential housing stock within such cities which is capa-
 ble, when appropriately altered, of  accommodating  general  residential
 use, thereby contributing to an alleviation of the housing shortage most
 severely affecting LOW, moderate and middle income families AND INDIVID-
 UALS,  and  of  accommodating  joint living-work quarters for artists by
 making readily available space  which  is  physically  and  economically
 suitable for use by persons regularly engaged in the arts.
   There is a public purpose to be served by making accommodations readi-
 ly  available for joint living-work quarters for artists for the follow-
 ing reasons:   persons regularly engaged  in  the  arts  require  larger
 S. 5080--B                          3

 amounts of space for the pursuit of their artistic endeavors and for the
 storage  of  the materials therefor and of the products thereof than are
 regularly to be found in dwellings subject to  this  article;  that  the
 financial  remunerations  to be obtained from pursuit of a career in the
 arts are generally small; that as a result  of  such  limited  financial
 remuneration  persons  regularly  engaged  in the arts generally find it
 financially impossible to maintain quarters for  the  pursuit  of  their
 artistic  endeavors  separate  and apart from their places of residence;
 that the cultural life of cities of more than one million persons within
 this state and of the state as a whole is enhanced by the  residence  in
 such  cities  of large numbers of persons regularly engaged in the arts;
 that the high cost of land within  such  cities  makes  it  particularly
 difficult for persons regularly engaged in the arts to obtain the use of
 the  amounts of space required for their work as aforesaid; and that the
 residential use of the space is secondary or accessory  to  the  primary
 use as a place of work.
   It  is  further declared that the legislation governing the alteration
 of such buildings to accommodate general residential use must of  neces-
 sity  be  more  restrictive  than  statutes  heretofore in effect, which
 affected only joint living-work quarters for artists.
   It is the intention of this legislation to promulgate statewide  mini-
 mum  standards for all alterations of non-residential buildings to resi-
 dential use, but the legislature is  cognizant  that  the  use  of  such
 buildings  for residential purposes must be consistent with local zoning
 ordinances. The legislature further recognizes that it is  the  role  of
 localities  to adopt regulations which will define in further detail the
 manner in which alterations should be carried out where  building  types
 and conditions are peculiar to their local environment.
   2.  IT IS HEREBY ADDITIONALLY DECLARED AND FOUND THAT IN CITIES WITH A
 POPULATION  IN EXCESS OF ONE MILLION, LARGE NUMBERS OF COMMERCIAL BUILD-
 INGS HAVE LOST, AND CONTINUE TO LOSE, THEIR TENANTS TO MORE MODERN PREM-
 ISES AND TO THE CHANGING  NATURE  AND  INCREASED  PREVALENCE  OF  REMOTE
 OFFICE  WORK  IN  THE WAKE OF THE COVID-19 PANDEMIC; THAT THE UNTENANTED
 PORTIONS OF SUCH BUILDINGS CONSTITUTE A POTENTIAL HOUSING  STOCK  WITHIN
 SUCH CITIES WHICH IS CAPABLE, WHEN APPROPRIATELY ALTERED, OF ACCOMMODAT-
 ING  GENERAL  RESIDENTIAL USE, THEREBY CONTRIBUTING TO AN ALLEVIATION OF
 THE HOUSING SHORTAGE, ESPECIALLY THE SHORTAGE OF AFFORDABLE HOUSING,  IS
 A  CRITICAL  PROBLEM  THAT  THREATENS  THE  ECONOMIC, ENVIRONMENTAL, AND
 SOCIAL QUALITY OF LIFE THROUGHOUT NEW YORK STATE AND  DISPROPORTIONATELY
 BURDENS  CERTAIN  NEW  YORKERS  INCLUDING,  BUT NOT LIMITED TO, LOW- AND
 MODERATE-INCOME, RACIAL AND ETHNIC  MINORITY,  AND  ELDERLY  HOUSEHOLDS;
 THAT  THE GEOGRAPHIC AREAS WITH THE GREATEST NUMBER OF COMMERCIAL BUILD-
 INGS MOST SUITABLE FOR CONVERSION TO RESIDENTIAL USE ARE  AREAS  WITH  A
 PARTICULARLY  ACUTE  SHORTAGE OF AFFORDABLE HOUSING; THAT IN FURTHERANCE
 OF OVERALL HOUSING PRODUCTION GOALS AND  AFFORDABLE  HOUSING  PRODUCTION
 GOALS,  AND  TO  PROMOTE THE GREATEST EFFICIENCY, IT IS BOTH A MATTER OF
 STATE CONCERN AND THE POLICY OF  THE  STATE  TO  PERMIT  CONVERSIONS  OF
 COMMERCIAL  BUILDINGS  TO RESIDENTIAL USES UNDER THE TERMS OF THIS ARTI-
 CLE, INCLUDING THE TERMS THAT REQUIRE AFFORDABLE HOUSING TO BE  INCLUDED
 IN  SUCH  BUILDINGS;  AND  THAT  IN ORDER TO PREVENT HOUSING INSECURITY,
 HARDSHIP, AND DISLOCATION, THE PROVISIONS OF THIS ARTICLE  ARE  DESIGNED
 TO  PROTECT  THE PUBLIC HEALTH, SAFETY, AND GENERAL WELFARE OF THE RESI-
 DENTS OF NEW YORK STATE.
   § 3. Section 276 of the multiple dwelling law, as amended  by  chapter
 420 of the laws of 2022, is amended to read as follows:
 S. 5080--B                          4
 
   § 276. [Definition of an artist] DEFINITIONS. As used in this article,
 the FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  THE  word  "artist" means a person who is regularly engaged in the
 fine arts, such as painting and sculpture or in the performing or  crea-
 tive  arts, including choreography and filmmaking, or in the composition
 of music on a professional basis,  and  is  so  certified  by  the  city
 department  of  cultural  affairs  and/or state council on the arts. For
 joint living-work quarters for artists limited to artists' occupancy  by
 local  zoning resolution, any permanent occupant whose residence therein
 began on or before December fifteenth, two thousand twenty-one shall  be
 deemed  to  meet such occupancy requirements under the same rights as an
 artist so certified in accordance with applicable law.
   2. THE TERM "GENERAL RESIDENTIAL PURPOSES" MEANS USE OF A BUILDING  AS
 A  CLASS  A MULTIPLE DWELLING, EXCEPT THAT SUCH TERM SHALL NOT INCLUDE A
 ROOMING UNIT AS DEFINED IN SECTION 27-2004 OF THE ADMINISTRATIVE CODE OF
 THE CITY OF NEW YORK OTHER THAN A ROOMING UNIT IN A CLASS A OR  CLASS  B
 MULTIPLE DWELLING THAT IS AUTHORIZED PURSUANT TO SECTION 27-2077 OF SUCH
 ADMINISTRATIVE CODE.
   §  4. The multiple dwelling law is amended by adding a new section 279
 to read as follows:
   § 279. OCCUPANCY OF COMMERCIAL BUILDINGS. 1. ANY  BUILDING,  EXCEPT  A
 TRANSIENT  HOTEL,  BOATEL,  MOTEL,  OR  TOURIST  CABIN  AS  DESCRIBED IN
 SECTIONS 32-14 AND 32-16 OF THE ZONING RESOLUTION OF  THE  CITY  OF  NEW
 YORK,  IN  A CITY WITH A POPULATION OF ONE MILLION OR MORE PERSONS WHICH
 WAS OCCUPIED FOR  LOFT,  COMMERCIAL,  INSTITUTIONAL,  PUBLIC,  COMMUNITY
 FACILITY  OR  MANUFACTURING PURPOSES AT ANY TIME PRIOR TO DECEMBER THIR-
 TY-FIRST, NINETEEN HUNDRED NINETY, MAY BE OCCUPIED, IN WHOLE OR IN PART,
 FOR GENERAL RESIDENTIAL PURPOSES IF SUCH OCCUPANCY IS IN COMPLIANCE WITH
 THIS ARTICLE AND IN COMPLIANCE WITH THE  REQUIREMENTS  OF  SECTION  FOUR
 HUNDRED  SIXTY-SEVEN-M OF THE REAL PROPERTY TAX LAW, NOTWITHSTANDING ANY
 OTHER ARTICLE OF THIS CHAPTER, OR ANY PROVISION OF LAW COVERING THE SAME
 SUBJECT MATTER, EXCEPT AS OTHERWISE REQUIRED BY THE ZONING RESOLUTION OF
 SUCH CITY.
   2. OCCUPANCY PURSUANT TO THIS SECTION SHALL BE PERMITTED ONLY  IF  THE
 CONDITIONS  IN  SUBDIVISIONS  ONE THROUGH SIXTEEN OF SECTION TWO HUNDRED
 SEVENTY-SEVEN OF THIS ARTICLE ARE COMPLIED WITH, EXCEPT THAT THE CONVER-
 SION SHALL NOT BE REQUIRED TO INCLUDE  JOINT  LIVING-WORK  QUARTERS  FOR
 ARTISTS,  AND  PROVIDED  FURTHER THAT CONVERSIONS UNDERTAKEN PURSUANT TO
 THIS SECTION SHALL NOT BE SUBJECT TO SUBDIVISION THREE OF SECTION  TWEN-
 TY-SIX OF THIS CHAPTER.
   3.  NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, ANY
 RESTRICTION BASED ON THE YEAR A BUILDING WAS  CONSTRUCTED  OR  OCCUPIED,
 ANY  LIMIT  ON  THE NUMBER OF ALLOWABLE DWELLING UNITS IN A BUILDING, OR
 ANY PROHIBITION ON THE CONVERSION OF ROOMING UNITS AS SET FORTH IN CHAP-
 TER FIVE OF ARTICLE I OF THE ZONING RESOLUTION OF THE CITY OF NEW  YORK,
 SHALL NOT PROHIBIT THE CONVERSION TO, OR OCCUPANCY OF, A BUILDING PURSU-
 ANT TO THIS SECTION.
   §  5.  Where a complete application for construction document approval
 for the conversion of a building pursuant to the provisions of this  act
 is filed prior to December 31, 2030, such conversion shall be authorized
 to  proceed  as if subdivision 3 of section 279 of the multiple dwelling
 law, as added by section four of this act, remained in effect,  so  long
 as  construction  of  such project begins within the earlier to occur of
 three years from December 31, 2030 or the date the  initial  permit  for
 such construction expires.
 S. 5080--B                          5
 
   §  6.  This act shall take effect immediately; provided, however, that
 subdivision 3 of section 279 of the multiple dwelling law  as  added  by
 section four of this act shall expire and be deemed repealed on December
 31, 2030; provided further, however, that the repeal of subdivision 3 of
 section  279  of  the  multiple dwelling law as added by section four of
 this act shall not affect the use of any building for  general  residen-
 tial  purposes,  as  such term is defined in article 7-B of the multiple
 dwelling law, permitted prior to such repeal.
 
                                  PART B
 
   Section 1. Paragraphs c and d of subdivision 2 of section 224-a of the
 labor law, as added by section 1 of part FFF of chapter 58 of  the  laws
 of 2020, are amended and a new paragraph e is added to read as follows:
   c. Money loaned by the public entity that is to be repaid on a contin-
 gent basis; [or]
   d.  Credits that are applied by the public entity against repayment of
 obligations to the public entity[.]; OR
   E. BENEFITS UNDER SECTION FOUR HUNDRED SIXTY-SEVEN-M OF THE REAL PROP-
 ERTY TAX LAW.
   § 2. The real property tax law is amended  by  adding  a  new  section
 467-m to read as follows:
   § 467-M. EXEMPTION FROM LOCAL REAL PROPERTY TAXATION OF CERTAIN MULTI-
 PLE  DWELLINGS IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE.  1.
 DEFINITIONS. FOR PURPOSES OF THIS SECTION,  THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   A. "AFFORDABLE HOUSING FROM COMMERCIAL CONVERSIONS TAX INCENTIVE BENE-
 FITS" HEREINAFTER REFERRED TO AS "AHCC PROGRAM BENEFITS", SHALL MEAN THE
 EXEMPTION  FROM  REAL  PROPERTY  TAXATION  AUTHORIZED  PURSUANT  TO THIS
 SECTION.
   B. "AFFORDABILITY REQUIREMENT" SHALL MEAN  THAT  WITHIN  ANY  ELIGIBLE
 MULTIPLE  DWELLING:  (I)  NOT  LESS  THAN TWENTY PERCENT OF THE DWELLING
 UNITS ARE AFFORDABLE HOUSING UNITS; (II) NOT LESS THAN FIVE  PERCENT  OF
 THE DWELLING UNITS ARE AFFORDABLE HOUSING FORTY PERCENT UNITS; (III) THE
 WEIGHTED  AVERAGE  OF ALL INCOME BANDS FOR ALL OF THE AFFORDABLE HOUSING
 UNITS DOES NOT  EXCEED  SEVENTY  PERCENT  OF  THE  AREA  MEDIAN  INCOME,
 ADJUSTED FOR FAMILY SIZE; (IV) THERE ARE NO MORE THAN THREE INCOME BANDS
 FOR  ALL  OF  THE  AFFORDABLE  HOUSING UNITS; AND (V) NO INCOME BAND FOR
 AFFORDABLE HOUSING UNITS EXCEEDS ONE HUNDRED PERCENT OF THE AREA  MEDIAN
 INCOME, ADJUSTED FOR FAMILY SIZE.
   C.  "AFFORDABLE HOUSING FORTY PERCENT UNIT" SHALL MEAN A DWELLING UNIT
 THAT: (I) IS SITUATED WITHIN THE ELIGIBLE MULTIPLE  DWELLING  FOR  WHICH
 AHCC PROGRAM BENEFITS ARE GRANTED; AND (II) UPON INITIAL RENTAL AND UPON
 EACH  SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE RESTRICTION PERI-
 OD, IS AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR FAMI-
 LIES WHOSE HOUSEHOLD INCOME DOES NOT EXCEED FORTY PERCENT  OF  THE  AREA
 MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, AT THE TIME THAT SUCH HOUSEHOLD
 INITIALLY OCCUPIES SUCH DWELLING UNIT.
   D.  "AFFORDABLE HOUSING UNIT" SHALL MEAN, COLLECTIVELY AND INDIVIDUAL-
 LY: (I) AN AFFORDABLE HOUSING FORTY PERCENT UNIT;  AND  (II)  ANY  OTHER
 UNIT THAT MEETS THE AFFORDABILITY REQUIREMENT UPON INITIAL OCCUPANCY AND
 UPON  EACH  SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE RESTRICTION
 PERIOD, AND IS AFFORDABLE TO AND RESTRICTED TO OCCUPANCY BY  INDIVIDUALS
 OR  FAMILIES  WHOSE  HOUSEHOLD  INCOME  DOES NOT EXCEED THE INCOME BANDS
 ESTABLISHED IN CONJUNCTION WITH SUCH AFFORDABILITY REQUIREMENT.
 S. 5080--B                          6
 
   E. "AGENCY" SHALL MEAN THE NEW YORK CITY DEPARTMENT OF HOUSING PRESER-
 VATION AND DEVELOPMENT.
   F. "APPLICATION" SHALL MEAN AN APPLICATION FOR AHCC PROGRAM BENEFITS.
   G.  "BUILDING SERVICE EMPLOYEE" SHALL MEAN ANY PERSON WHO IS REGULARLY
 EMPLOYED AT, AND PERFORMS WORK IN CONNECTION WITH THE  CARE  OR  MAINTE-
 NANCE  OF, AN ELIGIBLE MULTIPLE DWELLING, INCLUDING, BUT NOT LIMITED TO,
 A WATCHMAN, GUARD, DOORMAN, BUILDING CLEANER, PORTER, HANDYMAN, JANITOR,
 GARDENER, GROUNDSKEEPER,  ELEVATOR  OPERATOR  AND  STARTER,  AND  WINDOW
 CLEANER,  BUT  NOT  INCLUDING  PERSONS REGULARLY SCHEDULED TO WORK FEWER
 THAN EIGHT HOURS PER WEEK AT SUCH ELIGIBLE MULTIPLE DWELLING.
   H. "COMMENCEMENT DATE" SHALL MEAN  THE  DATE  UPON  WHICH  THE  ACTUAL
 CONSTRUCTION OF THE ELIGIBLE CONVERSION LAWFULLY BEGINS IN GOOD FAITH.
   I.  "COMPLETION DATE" SHALL MEAN THE DATE UPON WHICH THE LOCAL DEPART-
 MENT OF BUILDINGS ISSUES THE FIRST TEMPORARY OR PERMANENT CERTIFICATE OF
 OCCUPANCY COVERING ALL RESIDENTIAL AREAS OF AN ELIGIBLE MULTIPLE  DWELL-
 ING.
   J.  "CONSTRUCTION  PERIOD"  SHALL  MEAN,  WITH RESPECT TO ANY ELIGIBLE
 MULTIPLE DWELLING, A PERIOD: (I) BEGINNING ON THE LATER OF THE COMMENCE-
 MENT DATE OR THREE YEARS BEFORE THE COMPLETION DATE; AND (II) ENDING  ON
 THE DAY PRECEDING THE COMPLETION DATE.
   K.  "DWELLING" OR "DWELLINGS" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN SUBDIVISION FOUR OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   L. "ELIGIBLE CONVERSION" SHALL MEAN THE CONVERSION OF  A  NON-RESIDEN-
 TIAL BUILDING, EXCEPT A TRANSIENT HOTEL, BOATEL, MOTEL, OR TOURIST CABIN
 AS DESCRIBED IN SECTIONS 32-14 AND 32-16 OF THE ZONING RESOLUTION OF THE
 CITY OF NEW YORK, TO AN ELIGIBLE MULTIPLE DWELLING.
   M.  "ELIGIBLE  MULTIPLE DWELLING" SHALL MEAN A MULTIPLE DWELLING WHICH
 WAS SUBJECT TO AN ELIGIBLE CONVERSION AND IN  WHICH:  (I)  ALL  DWELLING
 UNITS  INCLUDED  IN ANY APPLICATION ARE OPERATED AS RENTAL HOUSING; (II)
 SIX OR MORE DWELLING UNITS HAVE BEEN CREATED THROUGH AN ELIGIBLE CONVER-
 SION; (III) THE COMMENCEMENT DATE IS AFTER  DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND TWENTY-TWO AND ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND
 THIRTY-TWO;  AND (IV) THE COMPLETION DATE IS ON OR BEFORE DECEMBER THIR-
 TY-FIRST, TWO THOUSAND THIRTY-EIGHT.
   N. "FISCAL OFFICER" SHALL MEAN  THE  COMPTROLLER  OR  OTHER  ANALOGOUS
 OFFICER IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE.
   O. "FLOOR AREA" SHALL MEAN THE HORIZONTAL AREAS OF THE SEVERAL FLOORS,
 OR ANY PORTION THEREOF, OF A DWELLING OR DWELLINGS, AND ACCESSORY STRUC-
 TURES  ON  A  LOT MEASURED FROM THE EXTERIOR FACES OF EXTERIOR WALLS, OR
 FROM THE CENTER LINE OF PARTY WALLS.
   P. "INCOME BAND" SHALL MEAN A PERCENTAGE OF THE  AREA  MEDIAN  INCOME,
 ADJUSTED FOR FAMILY SIZE, THAT IS A MULTIPLE OF TEN PERCENT.
   Q.  "MANHATTAN  PRIME  DEVELOPMENT  AREA"  SHALL  MEAN ANY TAX LOT NOW
 EXISTING OR HEREAFTER CREATED WHICH IS LOCATED ENTIRELY  SOUTH  OF  96TH
 STREET IN THE BOROUGH OF MANHATTAN.
   R.  "MARKET  UNIT"  SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE MULTIPLE
 DWELLING OTHER THAN AN AFFORDABLE HOUSING UNIT.
   S. "MARKETING BAND" SHALL MEAN MAXIMUM RENT AMOUNTS RANGING FROM TWEN-
 TY PERCENT TO THIRTY PERCENT OF THE AREA MEDIAN INCOME OR  INCOME  BAND,
 RESPECTIVELY, THAT IS APPLICABLE TO A SPECIFIC AFFORDABLE HOUSING UNIT.
   T.  "MULTIPLE  DWELLING"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN
 SUBDIVISION SEVEN OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   U. "NINETEEN-YEAR BENEFIT" SHALL MEAN: (I) FOR THE CONSTRUCTION  PERI-
 OD,  A  ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER
 THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;  (II)  FOR  THE  FIRST  FIFTEEN
 YEARS OF THE RESTRICTION PERIOD, (A) WITHIN THE MANHATTAN PRIME DEVELOP-
 S. 5080--B                          7
 
 MENT  AREA,  A SIXTY-FIVE PERCENT EXEMPTION FROM REAL PROPERTY TAXATION,
 OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, AND (B)  OUTSIDE  OF  THE
 MANHATTAN  PRIME  DEVELOPMENT  AREA, A FIFTY PERCENT EXEMPTION FROM REAL
 PROPERTY  TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS; (III)
 FOR THE SIXTEENTH YEAR OF THE RESTRICTION PERIOD, (A) WITHIN THE MANHAT-
 TAN PRIME DEVELOPMENT AREA, A  FIFTY-TWO  PERCENT  EXEMPTION  FROM  REAL
 PROPERTY  TAXATION,  OTHER  THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, AND
 (B) OUTSIDE OF THE MANHATTAN PRIME DEVELOPMENT  AREA,  A  FORTY  PERCENT
 EXEMPTION  FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL
 IMPROVEMENTS; (IV) FOR THE SEVENTEENTH YEAR OF THE  RESTRICTION  PERIOD,
 (A)  WITHIN  THE MANHATTAN PRIME DEVELOPMENT AREA, A THIRTY-NINE PERCENT
 EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR  LOCAL
 IMPROVEMENTS, AND (B) OUTSIDE OF THE MANHATTAN PRIME DEVELOPMENT AREA, A
 THIRTY PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESS-
 MENTS  FOR  LOCAL  IMPROVEMENTS;  (V)  FOR  THE  EIGHTEENTH  YEAR OF THE
 RESTRICTION PERIOD, (A) WITHIN THE MANHATTAN PRIME DEVELOPMENT  AREA,  A
 TWENTY-SIX  PERCENT  EXEMPTION  FROM  REAL PROPERTY TAXATION, OTHER THAN
 ASSESSMENTS FOR LOCAL IMPROVEMENTS, AND (B)  OUTSIDE  OF  THE  MANHATTAN
 PRIME  DEVELOPMENT  AREA,  A TWENTY PERCENT EXEMPTION FROM REAL PROPERTY
 TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;  AND  (VI)  FOR
 THE  NINETEENTH YEAR OF THE RESTRICTION PERIOD, (A) WITHIN THE MANHATTAN
 PRIME DEVELOPMENT AREA, A THIRTEEN PERCENT EXEMPTION FROM REAL  PROPERTY
 TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, AND (B) OUTSIDE
 OF  THE  MANHATTAN  PRIME DEVELOPMENT AREA, A TEN PERCENT EXEMPTION FROM
 REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS.
   V. "NON-RESIDENTIAL BUILDING" SHALL MEAN A STRUCTURE OR PORTION  OF  A
 STRUCTURE,  EXCEPT A TRANSIENT HOTEL, BOATEL, MOTEL, OR TOURIST CABIN AS
 DESCRIBED IN SECTIONS 32-14 AND 32-16 OF THE ZONING  RESOLUTION  OF  THE
 CITY  OF  NEW YORK, HAVING AT LEAST ONE FLOOR, A ROOF AND AT LEAST THREE
 WALLS ENCLOSING ALL OR MOST OF THE SPACE USED  IN  CONNECTION  WITH  THE
 STRUCTURE  OR PORTION OF THE STRUCTURE, WHICH HAS A CERTIFICATE OF OCCU-
 PANCY FOR COMMERCIAL, MANUFACTURING OR OTHER NON-RESIDENTIAL USE FOR NOT
 LESS THAN NINETY PERCENT OF THE AGGREGATE FLOOR AREA OF  SUCH  STRUCTURE
 OR PORTION OF SUCH STRUCTURE, OR OTHER PROOF OF SUCH NON-RESIDENTIAL USE
 AS IS ACCEPTABLE TO THE AGENCY.
   W.  "NON-RESIDENTIAL  TAX  LOT"  SHALL  MEAN  A  TAX LOT THAT DOES NOT
 CONTAIN ANY DWELLING UNITS.
   X. "RENT STABILIZATION" SHALL MEAN, COLLECTIVELY, THE RENT  STABILIZA-
 TION  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 SECTION OR AS AMENDED  THERE-
 AFTER,  TOGETHER  WITH  ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING
 SUBSTANTIALLY THE SAME SUBJECT MATTER.
   Y. "RESIDENTIAL TAX LOT" SHALL MEAN A TAX LOT THAT  CONTAINS  DWELLING
 UNITS.
   Z.  "RESTRICTION  PERIOD"  SHALL  MEAN  A  PERIOD  COMMENCING  ON  THE
 COMPLETION DATE AND EXTENDING IN PERPETUITY, NOTWITHSTANDING ANY EARLIER
 TERMINATION OR REVOCATION OF AHCC PROGRAM BENEFITS.
   2. BENEFIT. IN CITIES HAVING A POPULATION  OF  ONE  MILLION  OR  MORE,
 NOTWITHSTANDING  THE  PROVISIONS  OF ANY OTHER GENERAL, SPECIAL OR LOCAL
 LAW TO THE CONTRARY, A NEW ELIGIBLE MULTIPLE DWELLING, EXCEPT A HOTEL OR
 OTHER BUILDING DESIGNATED AS USE GROUPS 5 AND 7A BY  THE  ZONING  RESOL-
 UTION OF THE CITY OF NEW YORK, THAT COMPLIES WITH THE PROVISIONS OF THIS
 SECTION  SHALL BE EXEMPT FROM REAL PROPERTY TAXATION, OTHER THAN ASSESS-
 MENTS FOR LOCAL IMPROVEMENTS, IN THE AMOUNTS AND FOR THE PERIODS  SPECI-
 FIED  IN  THIS SECTION, PROVIDED THAT SUCH ELIGIBLE MULTIPLE DWELLING IS
 S. 5080--B                          8
 
 USED OR HELD OUT FOR USE FOR DWELLING  PURPOSES.  AN  ELIGIBLE  MULTIPLE
 DWELLING  THAT  MEETS  ALL  OF  THE  REQUIREMENTS  OF THIS SECTION SHALL
 RECEIVE A NINETEEN-YEAR BENEFIT.
   3.  TAX PAYMENTS. IN ADDITION TO ANY OTHER AMOUNTS PAYABLE PURSUANT TO
 THIS SECTION, THE OWNER OF ANY ELIGIBLE MULTIPLE DWELLING RECEIVING AHCC
 PROGRAM BENEFITS SHALL PAY, IN EACH TAX YEAR IN WHICH SUCH AHCC  PROGRAM
 BENEFITS ARE IN EFFECT, ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
   4.  LIMITATION ON BENEFITS FOR NON-RESIDENTIAL SPACE. IF THE AGGREGATE
 FLOOR AREA OF COMMERCIAL, COMMUNITY FACILITY AND ACCESSORY USE SPACE  IN
 AN  ELIGIBLE  MULTIPLE  DWELLING EXCEEDS TWELVE PERCENT OF THE AGGREGATE
 FLOOR AREA IN SUCH ELIGIBLE MULTIPLE DWELLING, ANY AHCC PROGRAM BENEFITS
 SHALL BE REDUCED BY A PERCENTAGE EQUAL TO SUCH EXCESS.  IF  AN  ELIGIBLE
 MULTIPLE  DWELLING  CONTAINS  MULTIPLE  TAX LOTS, THE TAX ARISING OUT OF
 SUCH REDUCTION IN AHCC PROGRAM BENEFITS SHALL FIRST BE  APPORTIONED  PRO
 RATA  AMONG ANY NON-RESIDENTIAL TAX LOTS. AFTER ANY SUCH NON-RESIDENTIAL
 TAX LOTS ARE FULLY TAXABLE, THE REMAINDER OF THE TAX ARISING OUT OF SUCH
 REDUCTION IN AHCC PROGRAM BENEFITS, IF ANY,  SHALL  BE  APPORTIONED  PRO
 RATA  AMONG THE REMAINING RESIDENTIAL TAX LOTS. FOR THE PURPOSES OF THIS
 SECTION, ACCESSORY USE SPACE SHALL NOT INCLUDE HOME OCCUPATION SPACE  OR
 ACCESSORY  PARKING  SPACE  LOCATED NOT MORE THAN TWENTY-THREE FEET ABOVE
 THE CURB LEVEL.
   5. APPLICATION OF BENEFIT. BASED ON THE CERTIFICATION  OF  THE  AGENCY
 CERTIFYING  ELIGIBILITY  FOR  AHCC  PROGRAM  BENEFITS, THE DEPARTMENT OF
 FINANCE SHALL DETERMINE THE AMOUNT OF THE EXEMPTION PURSUANT TO SUBDIVI-
 SIONS TWO AND FOUR OF THIS SECTION AND SHALL APPLY THE EXEMPTION TO  THE
 ASSESSED VALUE OF THE ELIGIBLE MULTIPLE DWELLING.
   6.  AFFORDABILITY  REQUIREMENTS.  AN  ELIGIBLE MULTIPLE DWELLING SHALL
 COMPLY  WITH  THE  FOLLOWING  AFFORDABILITY  REQUIREMENTS   DURING   THE
 RESTRICTION PERIOD:
   A. ALL AFFORDABLE HOUSING UNITS IN AN ELIGIBLE MULTIPLE DWELLING SHALL
 SHARE  THE  SAME COMMON ENTRANCES AND COMMON AREAS AS RENTAL MARKET RATE
 UNITS IN SUCH ELIGIBLE MULTIPLE DWELLING AND SHALL NOT BE ISOLATED TO  A
 SPECIFIC  FLOOR  OR  AREA  OF  AN  ELIGIBLE  MULTIPLE  DWELLING.  COMMON
 ENTRANCES SHALL MEAN ANY MEANS OF INGRESS OR EGRESS  REGULARLY  USED  BY
 ANY  RESIDENT  OF A RENTAL DWELLING UNIT IN THE ELIGIBLE MULTIPLE DWELL-
 ING.
   B. UNLESS PREEMPTED BY THE REQUIREMENTS OF A FEDERAL, STATE  OR  LOCAL
 HOUSING PROGRAM, EITHER: (I) THE AFFORDABLE HOUSING UNITS IN AN ELIGIBLE
 MULTIPLE  DWELLING  SHALL  HAVE  A  UNIT  MIX PROPORTIONAL TO THE RENTAL
 MARKET UNITS; OR (II) AT LEAST FIFTY PERCENT OF THE  AFFORDABLE  HOUSING
 UNITS  IN  AN ELIGIBLE MULTIPLE DWELLING SHALL HAVE TWO OR MORE BEDROOMS
 AND NO MORE THAN TWENTY-FIVE PERCENT OF  THE  AFFORDABLE  HOUSING  UNITS
 SHALL HAVE LESS THAN ONE BEDROOM.
   C.  NOTWITHSTANDING ANY PROVISION OF RENT STABILIZATION TO THE CONTRA-
 RY: (I) ALL AFFORDABLE HOUSING UNITS SHALL REMAIN FULLY SUBJECT TO  RENT
 STABILIZATION  DURING  THE  RESTRICTION  PERIOD; AND (II) ANY AFFORDABLE
 HOUSING UNIT OCCUPIED BY A TENANT THAT HAS BEEN APPROVED BY  THE  AGENCY
 PRIOR TO THE AGENCY'S DENIAL OF AN ELIGIBLE MULTIPLE DWELLING'S APPLICA-
 TION  FOR  AHCC PROGRAM BENEFITS SHALL REMAIN SUBJECT TO RENT STABILIZA-
 TION UNTIL SUCH TENANT VACATES SUCH AFFORDABLE HOUSING UNIT.
   D. ALL RENT STABILIZATION REGISTRATIONS REQUIRED  TO  BE  FILED  SHALL
 CONTAIN  A  DESIGNATION  THAT SPECIFICALLY IDENTIFIES AFFORDABLE HOUSING
 UNITS CREATED PURSUANT TO THIS SECTION AS "AHCC PROGRAM AFFORDABLE HOUS-
 ING UNITS" AND SHALL CONTAIN AN EXPLANATION  OF  THE  REQUIREMENTS  THAT
 APPLY TO ALL SUCH AFFORDABLE HOUSING UNITS.
 S. 5080--B                          9
 
   E.  FAILURE  TO  COMPLY  WITH  THE PROVISIONS OF THIS SUBDIVISION THAT
 REQUIRE THE CREATION, MAINTENANCE, RENT  STABILIZATION  COMPLIANCE,  AND
 OCCUPANCY OF AFFORDABLE HOUSING UNITS SHALL RESULT IN REVOCATION OF AHCC
 PROGRAM BENEFITS.
   F.  NOTHING  IN  THIS  SECTION SHALL: (I) PROHIBIT THE OCCUPANCY OF AN
 AFFORDABLE HOUSING UNIT BY INDIVIDUALS OR FAMILIES WHOSE INCOME  AT  ANY
 TIME  IS  LESS  THAN THE MAXIMUM PERCENTAGE OF THE AREA MEDIAN INCOME OR
 INCOME BAND, AS APPLICABLE, ADJUSTED FOR FAMILY SIZE, SPECIFIED FOR SUCH
 AFFORDABLE HOUSING UNIT PURSUANT TO THIS SECTION; OR (II)  PROHIBIT  THE
 OWNER  OF  AN  ELIGIBLE  MULTIPLE  DWELLING FROM REQUIRING, UPON INITIAL
 RENTAL OR UPON ANY RENTAL FOLLOWING A  VACANCY,  THE  OCCUPANCY  OF  ANY
 AFFORDABLE HOUSING UNIT BY SUCH LOWER INCOME INDIVIDUALS OR FAMILIES.
   G. FOLLOWING ISSUANCE OF A TEMPORARY CERTIFICATE OF OCCUPANCY AND UPON
 EACH  VACANCY  THEREAFTER,  AN AFFORDABLE HOUSING UNIT SHALL PROMPTLY BE
 OFFERED FOR RENTAL BY INDIVIDUALS OR  FAMILIES  WHOSE  INCOME  DOES  NOT
 EXCEED  THE MAXIMUM PERCENTAGE OF THE AREA MEDIAN INCOME OR INCOME BAND,
 AS APPLICABLE, ADJUSTED FOR FAMILY SIZE, SPECIFIED FOR  SUCH  AFFORDABLE
 HOUSING  UNIT  PURSUANT  TO  THIS  SECTION AND WHO INTEND TO OCCUPY SUCH
 AFFORDABLE HOUSING UNIT AS THEIR PRIMARY RESIDENCE. AN AFFORDABLE  HOUS-
 ING UNIT SHALL NOT BE: (I) RENTED TO A CORPORATION, PARTNERSHIP OR OTHER
 ENTITY;  OR (II) HELD OFF THE MARKET FOR A PERIOD LONGER THAN IS REASON-
 ABLY NECESSARY TO PERFORM REPAIRS NEEDED TO MAKE SUCH AFFORDABLE HOUSING
 UNIT AVAILABLE FOR OCCUPANCY.
   H. AN AFFORDABLE HOUSING UNIT SHALL NOT  BE  RENTED  ON  A  TEMPORARY,
 TRANSIENT  OR  SHORT-TERM BASIS.  EVERY LEASE AND RENEWAL THEREOF FOR AN
 AFFORDABLE HOUSING UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT  THE
 OPTION OF THE TENANT.
   I. AN AFFORDABLE HOUSING UNIT SHALL NOT BE CONVERTED TO COOPERATIVE OR
 CONDOMINIUM OWNERSHIP.
   J.  THE  AGENCY  MAY ESTABLISH BY RULE SUCH REQUIREMENTS AS THE AGENCY
 DEEMS NECESSARY OR APPROPRIATE FOR:  (I)  THE  MARKETING  OF  AFFORDABLE
 HOUSING  UNITS,  BOTH  UPON INITIAL OCCUPANCY AND UPON ANY VACANCY; (II)
 MONITORING COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION; AND (III)
 THE ESTABLISHMENT OF MARKETING BANDS FOR AFFORDABLE HOUSING UNITS.  SUCH
 REQUIREMENTS  MAY INCLUDE, BUT NEED NOT BE LIMITED TO, RETAINING A MONI-
 TOR APPROVED BY THE AGENCY AND PAID FOR BY THE  OWNER  OF  THE  ELIGIBLE
 MULTIPLE DWELLING.
   K.  NOTWITHSTANDING  ANY  PROVISION OF THIS SECTION TO THE CONTRARY, A
 MARKET UNIT SHALL NOT BE SUBJECT TO RENT STABILIZATION  UNLESS,  IN  THE
 ABSENCE  OF  AHCC  PROGRAM  BENEFITS,  THE UNIT WOULD BE SUBJECT TO RENT
 STABILIZATION.
   7. PUBLIC FUNDS. NOTWITHSTANDING ANY LAW TO THE CONTRARY,  THE  INCEN-
 TIVES  PROVIDED  FOR  IN PARAGRAPH A OF SUBDIVISION THREE OF SECTION TWO
 HUNDRED TWENTY-FOUR-A OF THE LABOR LAW SHALL BE  DEEMED  "PUBLIC  FUNDS"
 PURSUANT  TO SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-FOUR-A OF THE
 LABOR LAW. AS SUCH, ANY PROJECT THAT MEETS THE DEFINITION OF A  "COVERED
 PROJECT"  PURSUANT  TO  SUBDIVISIONS ONE AND FOUR OF SECTION TWO HUNDRED
 TWENTY-FOUR-A OF THE LABOR LAW SHALL COMPLY  WITH  ALL  REQUIREMENTS  OF
 SUCH LAW.
   8.  BUILDING  SERVICE  WORK. BUILDING SERVICE WORK SHALL BE SUBJECT TO
 PREVAILING WAGE UNDER ARTICLE NINE OF THE LABOR LAW  WHERE  THE  PROJECT
 RECEIVES  AHCC  PROGRAM BENEFITS. ANY PROJECT THAT RECEIVES AHCC PROGRAM
 BENEFITS PURSUANT TO THIS SECTION SHALL COMPLY WITH ALL REQUIREMENTS  OF
 SUCH LAW.
   9.  BUILDING  SERVICE  EMPLOYEES. A. FOR THE PURPOSES OF THIS SUBDIVI-
 SION, "APPLICANT" SHALL MEAN AN APPLICANT FOR AHCC PROGRAM BENEFITS, ANY
 S. 5080--B                         10
 
 SUCCESSOR TO SUCH APPLICANT, OR ANY EMPLOYER OF BUILDING SERVICE EMPLOY-
 EES FOR SUCH APPLICANT INCLUDING, BUT NOT LIMITED TO, A PROPERTY MANAGE-
 MENT COMPANY OR CONTRACTOR.
   B.  ALL  BUILDING  SERVICE  EMPLOYEES EMPLOYED BY THE APPLICANT AT THE
 ELIGIBLE MULTIPLE DWELLING SHALL RECEIVE THE APPLICABLE PREVAILING  WAGE
 FOR  THE  DURATION  OF  THE  NINETEEN-YEAR BENEFIT PERIOD, REGARDLESS OF
 WHETHER SUCH BENEFITS ARE REVOKED OR TERMINATED.
   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  IN  MAKING  SUCH INVESTIGATION, THE FISCAL OFFICER MAY UTILIZE WAGE
 AND FRINGE BENEFIT DATA FROM VARIOUS SOURCES, INCLUDING, BUT NOT LIMITED
 TO, DATA AND DETERMINATIONS OF  FEDERAL,  STATE  OR  OTHER  GOVERNMENTAL
 AGENCIES; PROVIDED, HOWEVER, THAT THE PROVISION OF A DWELLING UNIT SHALL
 NOT  BE  CONSIDERED  WAGES  OR  A  FRINGE BENEFIT; (II) TO INSTITUTE AND
 CONDUCT INSPECTIONS AT THE SITE OF THE WORK OR ELSEWHERE; (III) TO EXAM-
 INE 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  SUBPOENAS,  THE
 ENFORCEMENT  OF  WHICH  SHALL BE REGULATED BY THE CIVIL PRACTICE LAW AND
 RULES, ADMINISTER OATHS AND EXAMINE WITNESSES; (V) TO MAKE A CLASSIFICA-
 TION BY CRAFT, TRADE OR OTHER GENERALLY RECOGNIZED OCCUPATIONAL CATEGORY
 OF THE BUILDING SERVICE EMPLOYEES AND TO DETERMINE WHETHER SUCH WORK HAS
 BEEN PERFORMED BY THE BUILDING SERVICE EMPLOYEES IN SUCH CLASSIFICATION;
 (VI) TO REQUIRE THE APPLICANT TO FILE WITH THE FISCAL OFFICER  A  RECORD
 OF  THE  WAGES  ACTUALLY  PAID BY SUCH APPLICANT TO THE BUILDING SERVICE
 EMPLOYEES AND OF THEIR HOURS OF WORK; (VII) TO DELEGATE ANY OF THE FORE-
 GOING POWERS TO HIS OR HER DEPUTY OR  OTHER  AUTHORIZED  REPRESENTATIVE;
 (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  SUBDIVISION;  AND  (IX)  TO
 PRESCRIBE   APPROPRIATE   SANCTIONS  FOR  FAILURE  TO  COMPLY  WITH  THE
 PROVISIONS OF THIS SUBDIVISION. FOR EACH VIOLATION  OF  PARAGRAPH  B  OF
 THIS SUBDIVISION, THE FISCAL OFFICER MAY REQUIRE THE PAYMENT OF (A) BACK
 WAGES  AND FRINGE BENEFITS; (B) LIQUIDATED DAMAGES UP TO THREE TIMES THE
 AMOUNT OF THE BACK WAGES AND FRINGE  BENEFITS  FOR  WILLFUL  VIOLATIONS;
 AND/OR  (C) REASONABLE ATTORNEYS' FEES. IF THE FISCAL OFFICER FINDS THAT
 THE APPLICANT HAS FAILED TO COMPLY WITH THE PROVISIONS OF THIS  SUBDIVI-
 SION,  HE  OR  SHE  SHALL PRESENT EVIDENCE OF SUCH NON-COMPLIANCE TO THE
 AGENCY.
   D. PARAGRAPH B OF THIS SUBDIVISION SHALL NOT BE APPLICABLE TO:  (I) AN
 ELIGIBLE MULTIPLE DWELLING CONTAINING LESS THAN THIRTY  DWELLING  UNITS;
 OR  (II)  AN  ELIGIBLE  MULTIPLE  DWELLING  WHOSE ELIGIBLE CONVERSION IS
 CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF GRANTS, LOANS  OR  SUBSI-
 DIES  PROVIDED  BY  A  FEDERAL,  STATE  OR  LOCAL GOVERNMENTAL AGENCY OR
 INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE DEVELOPMENT OF  AFFORDABLE
 HOUSING.
   E.  THE  APPLICANT SHALL SUBMIT A SWORN AFFIDAVIT WITH ITS APPLICATION
 CERTIFYING THAT IT SHALL COMPLY WITH THE REQUIREMENTS OF  THIS  SUBDIVI-
 SION  OR  IS  EXEMPT IN ACCORDANCE WITH PARAGRAPH D OF THIS SUBDIVISION.
 UPON THE AGENCY'S APPROVAL OF SUCH APPLICATION, THE APPLICANT WHO IS NOT
 EXEMPT IN ACCORDANCE WITH PARAGRAPH D OF THIS SUBDIVISION  SHALL  SUBMIT
 ANNUALLY  A  SWORN  AFFIDAVIT  TO  THE FISCAL OFFICER CERTIFYING THAT IT
 SHALL COMPLY WITH THE REQUIREMENTS OF THIS SUBDIVISION.
 S. 5080--B                         11
 
   10. CONCURRENT EXEMPTIONS OR ABATEMENTS. AN ELIGIBLE MULTIPLE DWELLING
 RECEIVING AHCC PROGRAM BENEFITS SHALL NOT RECEIVE ANY EXEMPTION FROM  OR
 ABATEMENT OF REAL PROPERTY TAXATION UNDER ANY OTHER LAW.
   11.   VOLUNTARY   RENUNCIATION  OR  TERMINATION.  NOTWITHSTANDING  THE
 PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL  LAW  TO  THE  CONTRARY,  AN
 OWNER  SHALL  NOT  BE ENTITLED TO VOLUNTARILY RENOUNCE OR TERMINATE AHCC
 PROGRAM BENEFITS UNLESS  THE  AGENCY  AUTHORIZES  SUCH  RENUNCIATION  OR
 TERMINATION  IN  CONNECTION  WITH  THE  COMMENCEMENT  OF A TAX EXEMPTION
 PURSUANT TO THE PRIVATE HOUSING FINANCE  LAW  OR  SECTION  FOUR  HUNDRED
 TWENTY-C OF THIS TITLE.
   12. TERMINATION OR REVOCATION. THE AGENCY MAY TERMINATE OR REVOKE AHCC
 PROGRAM  BENEFITS  FOR NONCOMPLIANCE WITH THIS SECTION.  IF AN APPLICANT
 HAS COMMITTED THREE VIOLATIONS OF THE REQUIREMENTS OF  SUBDIVISION  NINE
 OF  THIS  SECTION  WITHIN  A FIVE-YEAR PERIOD, THE AGENCY MAY REVOKE ANY
 BENEFITS UNDER  THIS  SECTION.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  A
 "VIOLATION"  OF SUBDIVISION NINE OF THIS SECTION SHALL BE DEEMED A FIND-
 ING BY THE FISCAL OFFICER THAT THE APPLICANT HAS FAILED TO  COMPLY  WITH
 SUBDIVISION  NINE  OF THIS SECTION AND HAS FAILED TO CURE THE DEFICIENCY
 WITHIN THREE MONTHS OF SUCH FINDING. PROVIDED,  HOWEVER,  THAT  AFTER  A
 SECOND  VIOLATION,  THE  APPLICANT  SHALL  BE  NOTIFIED THAT ANY FURTHER
 VIOLATION MAY RESULT IN THE REVOCATION OF BENEFITS  UNDER  THIS  SECTION
 AND  THAT  THE FISCAL OFFICER SHALL PUBLISH ON ITS WEBSITE A LIST OF ALL
 APPLICANTS WITH TWO VIOLATIONS AS DEFINED IN THIS SUBDIVISION.   ALL  OF
 THE  AFFORDABLE HOUSING UNITS SHALL REMAIN SUBJECT TO RENT STABILIZATION
 AND ALL OTHER REQUIREMENTS OF THIS  SECTION  FOR  THE  DURATION  OF  THE
 RESTRICTION PERIOD, REGARDLESS OF WHETHER SUCH BENEFITS HAVE BEEN TERMI-
 NATED OR REVOKED.
   13.  POWERS  CUMULATIVE.  THE  ENFORCEMENT  PROVISIONS OF THIS SECTION
 SHALL NOT BE EXCLUSIVE, AND ARE IN ADDITION TO ANY OTHER  RIGHTS,  REME-
 DIES  OR  ENFORCEMENT  POWERS SET FORTH IN ANY OTHER LAW OR AVAILABLE AT
 LAW OR IN EQUITY.
   14. MULTIPLE TAX LOTS.  IF  AN  ELIGIBLE  MULTIPLE  DWELLING  CONTAINS
 MULTIPLE  TAX  LOTS, AN APPLICATION MAY BE SUBMITTED WITH RESPECT TO ONE
 OR MORE OF SUCH TAX LOTS. THE AGENCY  SHALL  DETERMINE  ELIGIBILITY  FOR
 AHCC  PROGRAM BENEFITS BASED UPON THE TAX LOTS INCLUDED IN SUCH APPLICA-
 TION AND BENEFITS FOR EACH SUCH  ELIGIBLE  MULTIPLE  DWELLING  SHALL  BE
 BASED UPON THE COMPLETION DATE OF EACH SUCH MULTIPLE DWELLING.
   15.  APPLICATIONS.  A.  THE  APPLICATION  WITH RESPECT TO ANY ELIGIBLE
 MULTIPLE DWELLING SHALL BE FILED WITH THE AGENCY  NO  EARLIER  THAN  THE
 COMPLETION DATE AND NOT LATER THAN ONE YEAR AFTER THE COMPLETION DATE OF
 SUCH ELIGIBLE MULTIPLE DWELLING.
   B.  NOTWITHSTANDING  THE  PROVISIONS OF ANY GENERAL, SPECIAL, OR LOCAL
 LAW TO THE CONTRARY, THE AGENCY MAY REQUIRE BY RULE THAT APPLICATIONS BE
 FILED ELECTRONICALLY.
   C. THE AGENCY MAY RELY ON CERTIFICATION BY AN  ARCHITECT  OR  ENGINEER
 SUBMITTED  BY  AN APPLICANT IN CONNECTION WITH THE FILING OF AN APPLICA-
 TION. A FALSE CERTIFICATION BY  SUCH  ARCHITECT  OR  ENGINEER  SHALL  BE
 DEEMED  TO  BE  PROFESSIONAL  MISCONDUCT  PURSUANT TO SECTION SIXTY-FIVE
 HUNDRED NINE OF THE EDUCATION LAW.   ANY  ARCHITECT  OR  ENGINEER  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 EDUCA-
 TION LAW AND SHALL THEREAFTER BE INELIGIBLE TO  SUBMIT  A  CERTIFICATION
 PURSUANT TO THIS SECTION.
   D.  SUCH APPLICATION SHALL ALSO CERTIFY THAT ALL TAXES, WATER CHARGES,
 AND SEWER RENTS CURRENTLY DUE AND OWING ON THE  PROPERTY  WHICH  IS  THE
 S. 5080--B                         12
 
 SUBJECT OF THE APPLICATION HAVE BEEN PAID OR ARE CURRENTLY BEING PAID IN
 TIMELY  INSTALLMENTS PURSUANT TO A WRITTEN AGREEMENT WITH THE DEPARTMENT
 OF FINANCE OR OTHER APPROPRIATE AGENCY.
   16.  FILING  FEE.  THE AGENCY MAY REQUIRE A FILING FEE OF NO LESS THAN
 THREE THOUSAND DOLLARS PER DWELLING UNIT IN CONNECTION WITH ANY APPLICA-
 TION, EXCEPT THAT THE AGENCY MAY PROMULGATE RULES:
   A. IMPOSING A LESSER FEE  FOR  AN  ELIGIBLE  MULTIPLE  DWELLING  WHOSE
 ELIGIBLE  CONVERSION  IS  CARRIED OUT WITH THE SUBSTANTIAL ASSISTANCE OF
 GRANTS, LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE OR LOCAL GOVERN-
 MENTAL AGENCY OR INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE  DEVELOP-
 MENT OF AFFORDABLE HOUSING; AND
   B.  REQUIRING  A  PORTION  OF  THE  FILING  FEE  TO  BE  PAID UPON THE
 SUBMISSION OF THE INFORMATION THE AGENCY REQUIRES IN ADVANCE OF  APPROV-
 ING  THE COMMENCEMENT OF THE MARKETING PROCESS FOR SUCH ELIGIBLE CONVER-
 SION.
   17. RULES. EXCEPT AS PROVIDED IN SUBDIVISION NINE OF THIS SECTION, THE
 AGENCY SHALL HAVE THE SOLE AUTHORITY TO ENFORCE THE PROVISIONS  OF  THIS
 SECTION  AND  MAY  PROMULGATE  RULES TO CARRY OUT THE PROVISIONS OF THIS
 SECTION.
   18. PENALTIES FOR VIOLATIONS OF AFFORDABILITY REQUIREMENTS. A.  ON  OR
 AFTER  THE  EXPIRATION DATE OF THE NINETEEN-YEAR BENEFIT, THE AGENCY MAY
 IMPOSE, AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD, A PENALTY  FOR  ANY
 VIOLATION BY AN ELIGIBLE MULTIPLE DWELLING OF THE AFFORDABILITY REQUIRE-
 MENTS OF SUBDIVISION SIX OF THIS SECTION.
   B.  A  PENALTY  IMPOSED  UNDER THIS SUBDIVISION SHALL BE COMPUTED AS A
 PERCENTAGE OF THE CAPITALIZED VALUE OF ALL AHCC PROGRAM BENEFITS ON  THE
 ELIGIBLE  MULTIPLE  DWELLING, CALCULATED AS OF THE FIRST YEAR THAT BENE-
 FITS WERE GRANTED, NOT TO EXCEED ONE THOUSAND PERCENT. THE AGENCY  SHALL
 ESTABLISH  A SCHEDULE AND METHOD OF CALCULATION OF SUCH PENALTIES PURSU-
 ANT TO SUBDIVISION SEVENTEEN OF THIS SECTION.
   C. A PENALTY IMPOSED UNDER THIS SUBDIVISION SHALL BE  IMPOSED  AGAINST
 THE  OWNER  OF  THE ELIGIBLE MULTIPLE DWELLING AT THE TIME THE VIOLATION
 OCCURRED, EVEN IF SUCH OWNER  NO  LONGER  OWNS  SUCH  ELIGIBLE  MULTIPLE
 DWELLING AT THE TIME OF THE AGENCY'S DETERMINATION.
   D.  A  PERSON OR ENTITY WHO FAILS TO PAY A PENALTY IMPOSED PURSUANT TO
 THIS SUBDIVISION SHALL BE GUILTY OF A MISDEMEANOR PUNISHABLE  BY  IMPRI-
 SONMENT NOT TO EXCEED SIX MONTHS.
   § 3. This act shall take effect immediately.
 
                                  PART C
 
   Section 1. Paragraphs d and e of subdivision 2 of section 224-a of the
 labor  law, paragraph d as amended and paragraph e as added by section 1
 of part B of this act, are amended and a new paragraph  f  is  added  to
 read as follows:
   d.  Credits that are applied by the public entity against repayment of
 obligations to the public entity; [or]
   e. Benefits under section four hundred sixty-seven-m of the real prop-
 erty tax law[.]; OR
   F. BENEFITS UNDER SECTION FOUR HUNDRED TWENTY-ONE-P OF THE REAL  PROP-
 ERTY TAX LAW.
   §  2.  The  real  property  tax law is amended by adding a new section
 421-p to read as follows:
   § 421-P.  EXEMPTION OF ELIGIBLE NEWLY CONSTRUCTED  MULTIPLE  DWELLINGS
 OR CONVERSIONS TO RENTAL MULTIPLE DWELLINGS.  1. (A) A CITY OTHER THAN A
 CITY WITH A POPULATION OF ONE MILLION OR MORE, A TOWN, OR A VILLAGE MAY,
 S. 5080--B                         13

 BY  LOCAL  LAW,  PROVIDE  FOR THE EXEMPTION OF RENTAL MULTIPLE DWELLINGS
 NEWLY CONSTRUCTED OR CONVERTED FROM EXISTING  NON-RESIDENTIAL  BUILDINGS
 IN A BENEFIT AREA DESIGNATED IN SUCH LOCAL LAW FROM TAXATION AND SPECIAL
 AD  VALOREM  LEVIES,  AS  PROVIDED  IN THIS SECTION.   SUBSEQUENT TO THE
 ADOPTION OF SUCH A LOCAL LAW, ANY OTHER MUNICIPAL CORPORATION  IN  WHICH
 THE DESIGNATED BENEFIT AREA IS LOCATED MAY LIKEWISE EXEMPT SUCH PROPERTY
 FROM  ITS TAXATION AND SPECIAL AD VALOREM LEVIES BY LOCAL LAW, OR IN THE
 CASE OF A SCHOOL DISTRICT, BY RESOLUTION.
   (B) AS USED IN THIS SECTION, THE TERM "BENEFIT AREA"  MEANS  THE  AREA
 WITHIN  A  CITY,  TOWN  OR VILLAGE, DESIGNATED BY LOCAL LAW, TO WHICH AN
 EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION, APPLIES.
   (C) THE TERM "RENTAL MULTIPLE DWELLING" MEANS A STRUCTURE, OTHER  THAN
 A  HOTEL,  CONSISTING OF TWENTY OR MORE DWELLING UNITS, WHERE ALL OF THE
 UNITS ARE RENTED FOR RESIDENTIAL PURPOSES, AND AT LEAST  TWENTY  PERCENT
 OF  SUCH  UNITS,  UPON  INITIAL  RENTAL  AND UPON EACH SUBSEQUENT RENTAL
 FOLLOWING A VACANCY DURING THE RESTRICTION PERIOD IS AFFORDABLE  TO  AND
 RESTRICTED  TO  OCCUPANCY  BY  INDIVIDUALS  OR  FAMILIES WHOSE HOUSEHOLD
 INCOME DOES NOT  EXCEED  EIGHTY  PERCENT  OF  THE  AREA  MEDIAN  INCOME,
 ADJUSTED  FOR  FAMILY SIZE, ON AVERAGE, AT THE TIME THAT SUCH HOUSEHOLDS
 INITIALLY OCCUPY SUCH DWELLING UNITS, PROVIDED FURTHER THAT ALL  OF  THE
 INCOME  RESTRICTED  UNITS  UPON  INITIAL RENTAL AND UPON EACH SUBSEQUENT
 RENTAL FOLLOWING A  VACANCY  DURING  THE  RESTRICTION  PERIOD  SHALL  BE
 AFFORDABLE  TO  AND  RESTRICTED  TO OCCUPANCY BY INDIVIDUALS OR FAMILIES
 WHOSE HOUSEHOLD INCOME DOES NOT EXCEED ONE HUNDRED PERCENT OF  THE  AREA
 MEDIAN  INCOME,  ADJUSTED  FOR FAMILY SIZE, AT THE TIME THAT SUCH HOUSE-
 HOLDS INITIALLY OCCUPY SUCH DWELLING UNITS.
   (D) THE TERM "NON-RESIDENTIAL BUILDING" MEANS A STRUCTURE  OR  PORTION
 OF  A  STRUCTURE  HAVING  AT  LEAST ONE FLOOR, A ROOF AND AT LEAST THREE
 WALLS ENCLOSING ALL OR MOST OF THE SPACE USED  IN  CONNECTION  WITH  THE
 STRUCTURE  OR PORTION OF THE STRUCTURE, WHICH HAS A CERTIFICATE OF OCCU-
 PANCY FOR COMMERCIAL, MANUFACTURING OR OTHER NON-RESIDENTIAL USE FOR NOT
 LESS THAN NINETY PERCENT OF THE AGGREGATE FLOOR AREA OF  SUCH  STRUCTURE
 OR PORTION OF SUCH STRUCTURE, OR OTHER PROOF OF SUCH NON-RESIDENTIAL USE
 AS IS ACCEPTABLE TO THE CITY, TOWN, OR VILLAGE.
   (E)  THE  TERM  "ELIGIBLE  CONVERSION"  SHALL MEAN THE CONVERSION OF A
 NON-RESIDENTIAL BUILDING TO AN ELIGIBLE MULTIPLE DWELLING.
   (F) THE TERM "RESTRICTION PERIOD" SHALL MEAN A  PERIOD  COMMENCING  ON
 THE  COMPLETION  DATE  AND  EXTENDING IN PERPETUITY, NOTWITHSTANDING ANY
 EARLIER TERMINATION OR REVOCATION OF AN EXEMPTION PROVIDED  PURSUANT  TO
 THIS SECTION.
   2.  ELIGIBLE  NEWLY CONSTRUCTED RENTAL MULTIPLE DWELLINGS OR NON-RESI-
 DENTIAL BUILDINGS CONVERTED TO RENTAL MULTIPLE DWELLINGS IN A DESIGNATED
 BENEFIT  AREA  SHALL  BE  WHOLLY  EXEMPT  FROM  TAXATION   WHILE   UNDER
 CONSTRUCTION,  SUBJECT  TO A MAXIMUM OF THREE YEARS. SUCH PROPERTY SHALL
 THEN BE EXEMPT FOR THIRTY YEARS AT FIFTY PERCENT. PROVIDED, HOWEVER:
   (A) TAXES SHALL BE PAID DURING THE EXEMPTION PERIOD IN  AN  AMOUNT  AT
 LEAST  EQUAL TO THE TAXES PAID ON SUCH LAND AND ANY IMPROVEMENTS THEREON
 DURING THE TAX YEAR PRECEDING THE COMMENCEMENT OF SUCH EXEMPTION.
   (B) NO OTHER  EXEMPTION  MAY  BE  GRANTED  CONCURRENTLY  TO  THE  SAME
 IMPROVEMENTS UNDER ANY OTHER SECTION OF LAW.
   3.  TO  BE  ELIGIBLE  FOR  EXEMPTION  UNDER  THIS  SECTION  AS A NEWLY
 CONSTRUCTED RENTAL MULTIPLE DWELLING, SUCH CONSTRUCTION SHALL TAKE PLACE
 ON VACANT, PREDOMINANTLY  VACANT  OR  UNDERUTILIZED  LAND,  OR  ON  LAND
 IMPROVED  WITH  A  NON-CONFORMING  USE OR ON LAND CONTAINING ONE OR MORE
 SUBSTANDARD OR STRUCTURALLY UNSOUND DWELLINGS, OR A  DWELLING  THAT  HAS
 BEEN CERTIFIED AS UNSANITARY BY THE LOCAL HEALTH AGENCY.
 S. 5080--B                         14
 
   4.  IN  THE CASE OF NEWLY CONSTRUCTED PROPERTY WHICH IS USED PARTIALLY
 AS A RENTAL MULTIPLE DWELLING AND  PARTIALLY  FOR  COMMERCIAL  OR  OTHER
 PURPOSES,  THE PORTION OF THE NEWLY CONSTRUCTED PROPERTY THAT IS USED AS
 A RENTAL MULTIPLE DWELLING SHALL BE ELIGIBLE FOR THE  EXEMPTION  AUTHOR-
 IZED BY THIS SECTION IF:
   (A) THE SQUARE FOOTAGE OF THE PORTION USED AS A RENTAL MULTIPLE DWELL-
 ING  REPRESENTS  AT  LEAST  FIFTY  PERCENT  OF THE SQUARE FOOTAGE OF THE
 ENTIRE PROPERTY;
   (B) THE RENTAL UNITS ARE AFFORDABLE  TO  INDIVIDUALS  OR  FAMILIES  AS
 DETERMINED  ACCORDING  TO  THE  CRITERIA  SET  FORTH IN PARAGRAPH (C) OF
 SUBDIVISION ONE OF THIS SECTION; AND
   (C) THE REQUIREMENTS OF THIS  SECTION  ARE  OTHERWISE  SATISFIED  WITH
 RESPECT  TO THE PORTION OF THE PROPERTY USED AS A RENTAL MULTIPLE DWELL-
 ING.
   5. AFFORDABILITY REQUIREMENTS. AN ELIGIBLE  NEWLY  CONSTRUCTED  RENTAL
 MULTIPLE  DWELLING  OR  CONVERSION  TO  A RENTAL MULTIPLE DWELLING SHALL
 COMPLY  WITH  THE  FOLLOWING  AFFORDABILITY  REQUIREMENTS   DURING   THE
 RESTRICTION PERIOD:
   (A) ALL INCOME-RESTRICTED DWELLING UNITS IN A RENTAL MULTIPLE DWELLING
 SHALL SHARE THE SAME COMMON ENTRANCES AND COMMON AREAS AS NON-RESTRICTED
 UNITS IN SUCH ELIGIBLE CONVERSION AND SHALL NOT BE ISOLATED TO A SPECIF-
 IC  FLOOR  OR  AREA  OF  AN  ELIGIBLE  RENTAL  MULTIPLE DWELLING. COMMON
 ENTRANCES SHALL MEAN ANY MEANS OF INGRESS OR EGRESS  REGULARLY  USED  BY
 ANY  RESIDENT  OF A RENTAL DWELLING UNIT IN THE ELIGIBLE RENTAL MULTIPLE
 DWELLING.
   (B) UNLESS PREEMPTED BY THE REQUIREMENTS OF A FEDERAL, STATE OR  LOCAL
 HOUSING PROGRAM, IN AN ELIGIBLE NEWLY CONSTRUCTED RENTAL MULTIPLE DWELL-
 ING  OR  AN ELIGIBLE CONVERSION, EITHER: (I) THE INCOME-RESTRICTED UNITS
 SHALL HAVE A UNIT MIX PROPORTIONAL TO THE NON-RESTRICTED UNITS; OR  (II)
 AT  LEAST FIFTY PERCENT OF THE INCOME-RESTRICTED UNITS SHALL HAVE TWO OR
 MORE BEDROOMS AND NO MORE THAN TWENTY-FIVE PERCENT  OF  THE  INCOME-RES-
 TRICTED UNITS SHALL HAVE LESS THAN ONE BEDROOM.
   6. A RENTAL MULTIPLE DWELLING UNIT SHALL NOT BE RENTED ON A TEMPORARY,
 TRANSIENT  OR  SHORT-TERM  BASIS. EVERY LEASE AND RENEWAL THEREOF FOR AN
 INCOME-RESTRICTED UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS,  AT  THE
 OPTION OF THE TENANT.
   7.  A  RENTAL MULTIPLE DWELLING UNIT SHALL NOT BE CONVERTED TO COOPER-
 ATIVE OR CONDOMINIUM OWNERSHIP.
   8. APPLICATION FOR EXEMPTION UNDER THIS SECTION SHALL  BE  MADE  ON  A
 FORM  PRESCRIBED BY THE COMMISSIONER OF THE DIVISION OF HOMES AND COMMU-
 NITY RENEWAL AND FILED WITH THE ASSESSOR ON  OR  BEFORE  THE  APPLICABLE
 TAXABLE STATUS DATE.
   9.  ANY RECIPIENT OF THE EXEMPTION AUTHORIZED BY THIS SECTION OR THEIR
 DESIGNEE SHALL CERTIFY COMPLIANCE WITH THE PROVISIONS  OF  THIS  SECTION
 UNDER  PENALTY  OF  PERJURY, AT SUCH TIME OR TIMES AND IN SUCH MANNER AS
 MAY BE PRESCRIBED IN THE LOCAL LAW ADOPTED BY THE CITY, TOWN OR  VILLAGE
 PURSUANT  TO  PARAGRAPH  (A) OF SUBDIVISION ONE OF THIS SECTION, OR BY A
 SUBSEQUENT LOCAL LAW. SUCH CITY, TOWN  OR  VILLAGE  MAY  ESTABLISH  SUCH
 PROCEDURES AS IT DEEMS NECESSARY FOR MONITORING AND ENFORCING COMPLIANCE
 OF AN ELIGIBLE BUILDING WITH THE PROVISIONS OF THIS SECTION.
   § 3. This act shall take effect immediately.
   §  2.  Severability.  If any clause, sentence, paragraph, subdivision,
 section or part of this act shall be adjudged by any court of  competent
 jurisdiction  to  be invalid, such judgment shall not affect, impair, or
 invalidate the remainder thereof, but shall be confined in its operation
 to the clause, sentence, paragraph, subdivision, section or part thereof
 S. 5080--B                         15
 
 directly involved in the controversy in which such judgment  shall  have
 been rendered. It is hereby declared to be the intent of the legislature
 that  this  act  would have been enacted even if such invalid provisions
 had not been included herein.
   §  3.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A through C of this act shall  be
 as specifically set forth in the last section of such Parts.