S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5172--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend the real property law, in relation to establishing an
   accessory dwelling unit incentive program; to amend the executive law,
   in relation to including an accessory dwelling unit in the term  hous-
   ing  accommodations  in  the  human  rights law; and to amend the real
   property tax law, in relation to providing  a  tax  exemption  on  the
   increase in value of property resulting from the addition of an acces-
   sory dwelling unit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property law is amended by adding a new article 16
 to read as follows:
                                ARTICLE 16
                         ACCESSORY DWELLING UNITS
 SECTION 480. DEFINITIONS.
         481. ACCESSORY DWELLING UNIT INCENTIVE PROGRAM AND LOCAL LAWS.
         482. LOW- AND MODERATE-INCOME HOMEOWNERS PROGRAM.
   § 480. DEFINITIONS. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHER-
 WISE REQUIRES, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ACCESSORY DWELLING UNIT" SHALL MEAN  AN  ATTACHED  OR  A  DETACHED
 RESIDENTIAL  DWELLING  UNIT  THAT  PROVIDES  COMPLETE INDEPENDENT LIVING
 FACILITIES FOR ONE OR MORE PERSONS WHICH IS LOCATED  ON  A  LOT  WITH  A
 PROPOSED  OR  EXISTING  PRIMARY  RESIDENCE  AND  SHALL INCLUDE PERMANENT
 PROVISIONS FOR LIVING, SLEEPING, EATING, COOKING, AND SANITATION ON  THE
 SAME LOT AS THE SINGLE-FAMILY OR MULTI-FAMILY DWELLING.
   2. "LOCAL GOVERNMENT" SHALL MEAN A CITY, TOWN OR VILLAGE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09847-03-3
 S. 5172--A                          2
 
              

   3.  "LOW-INCOME  HOMEOWNERS"  SHALL  MEAN  HOMEOWNERS  WITH AN INCOME,
 ADJUSTED FOR FAMILY SIZE, NOT EXCEEDING EIGHTY PERCENT OF THE AREA MEDI-
 AN INCOME.
   4.  "MODERATE-INCOME HOMEOWNERS" SHALL MEAN HOMEOWNERS WITH AN INCOME,
 ADJUSTED FOR FAMILY SIZE, NOT EXCEEDING ONE HUNDRED  TWENTY  PERCENT  OF
 THE AREA MEDIAN INCOME AS DEFINED BY THE DIVISION.
   5.  "NONCONFORMING ZONING CONDITION" SHALL MEAN A PHYSICAL IMPROVEMENT
 ON A PROPERTY THAT DOES NOT CONFORM WITH CURRENT ZONING STANDARDS.
   6. "PROPOSED DWELLING" SHALL MEAN A DWELLING THAT IS THE SUBJECT OF  A
 PERMIT APPLICATION AND THAT MEETS THE REQUIREMENTS FOR PERMITTING.
   7.  "DIVISION"  SHALL  MEAN THE NEW YORK STATE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL.
   § 481. ACCESSORY DWELLING UNIT INCENTIVE PROGRAM AND  LOCAL  LAWS.  1.
 WITHIN  ONE  HUNDRED  EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE,
 THE DIVISION SHALL ESTABLISH AN OPT-IN PROGRAM FOR LOCAL GOVERNMENTS WHO
 ALREADY HAVE OR WHO ENACT A  LOCAL  LAW  OR  ORDINANCE  THAT  MEETS  THE
 REQUIREMENTS  OF  SUBDIVISION  TWO  OF THIS SECTION WHICH ENCOURAGES THE
 CREATION OF ACCESSORY DWELLING UNITS. A LOCAL GOVERNMENT SHALL HAVE FIVE
 YEARS FROM THE DATE SUCH PROGRAM IS ESTABLISHED TO ENACT SUCH LOCAL  LAW
 OR ORDINANCE TO QUALIFY FOR THE PROGRAM.
   2.  (A) TO QUALIFY FOR THE PROGRAM ESTABLISHED PURSUANT TO SUBDIVISION
 ONE OF THIS SECTION, A LOCAL LAW OR ORDINANCE SHALL:
   (I) DESIGNATE AREAS WITHIN THE JURISDICTION OF  THE  LOCAL  GOVERNMENT
 WHERE  ACCESSORY  DWELLING  UNITS  SHALL  BE PERMITTED. DESIGNATED AREAS
 SHALL INCLUDE ALL AREAS ZONED FOR SINGLE-FAMILY OR MULTI-FAMILY RESIDEN-
 TIAL USE, AND ALL LOTS WITH AN EXISTING RESIDENTIAL USE.
   (II) PROVIDE FOR PROTECTIONS FOR EXISTING ILLEGAL  ACCESSORY  DWELLING
 UNITS  TO  AID  IN  THE  CONVERSION OF SUCH UNITS TO BECOME LEGAL AND IN
 COMPLIANCE WITH STATE AND LOCAL REGULATIONS, INCLUDING BUT  NOT  LIMITED
 TO:  (1) A MECHANISM FOR THE CONVERSION OF AN ILLEGAL ACCESSORY DWELLING
 UNIT TO BE A LEGAL UNIT, PROVIDED SUCH UNIT IS IN  COMPLIANCE  WITH  ALL
 APPLICABLE  FIRE  AND  SAFETY  CODES; AND (2) PROTECTIONS FOR TENANTS OF
 ILLEGAL ACCESSORY DWELLING UNITS FROM UNREASONABLE RENT INCREASES.
   (III) PROVIDE FOR A STREAMLINED APPROVAL  PROCESS  INVOLVING  NO  MORE
 THAN  ONE  MEETING WITH THE APPLICABLE APPROVING AUTHORITY, AND LIMITING
 THE COST OF ANY NECESSARY APPLICATIONS AND PERMITS TO A  TOTAL  OF  FIVE
 HUNDRED DOLLARS.
   (IV) PROVIDE THAT SEWER AND SEPTIC HOOKUPS SHALL BE GOVERNED UNDER THE
 APPLICABLE EXISTING LOCAL REQUIREMENTS.
   (B) A QUALIFYING LOCAL LAW OR ORDINANCE MAY:
   (I)  REQUIRE OWNER OCCUPANCY IN EITHER THE PRIMARY OR ACCESSORY DWELL-
 ING UNIT.
   (II) SET A MINIMUM LEASE DURATION FOR ACCESSORY DWELLING UNITS.
   (III) LIMIT THE TOTAL BUILD OUT TO THE EXISTING ALLOWABLE SQUARE-FOOT-
 UNDER-FLOOR RATIO AND LOT COVERAGE, CONSISTENT WITH EXISTING SETBACK FOR
 OTHER ACCESSORY USES.
   (IV) SET MINIMUM OR MAXIMUM SIZE  LIMITS  FOR  AN  ACCESSORY  DWELLING
 UNIT.
   (C) TO QUALIFY FOR THE PROGRAM ESTABLISHED PURSUANT TO SUBDIVISION ONE
 OF THIS SECTION, A LOCAL LAW OR ORDINANCE SHALL NOT:
   (I)  IMPOSE AN OFF-STREET PARKING REQUIREMENT ON AN ACCESSORY DWELLING
 UNIT,  EXCEPT  WHERE  NO  ADJACENT  PUBLIC  STREET  PERMITS   YEAR-ROUND
 ON-STREET  PARKING  AND THE ACCESSORY DWELLING UNIT IS GREATER THAN ONE-
 HALF MILE FROM A SUBWAY STOP, RAIL STATION OR BUS STOP. FOR PURPOSES  OF
 THIS  SUBPARAGRAPH,  AN  ADJACENT  PUBLIC  STREET SHALL BE CONSIDERED AS
 S. 5172--A                          3
 
 PERMITTING  YEAR-ROUND  ON-STREET  PARKING  NOTWITHSTANDING  RULES  THAT
 PROHIBIT PARKING DURING LIMITED HOURS OR ON CERTAIN DAYS OF THE WEEK.
   (II)  IMPOSE  UNDUE  OR UNNECESSARY FIRE AND SAFETY CODES ON ACCESSORY
 DWELLING UNITS.
   (III) REQUIRE MORE THAN ONE POINT OF EXTERIOR ACCESS  BY  DOOR  TO  AN
 ACCESSORY DWELLING UNIT.
   3. TO OPT-IN TO THE PROGRAM ESTABLISHED PURSUANT TO SUBDIVISION ONE OF
 THIS  SECTION A LOCAL GOVERNMENT SHALL SUBMIT A COPY OF ITS LOCAL LAW OR
 ORDINANCE TO THE DIVISION. WITHIN NINETY DAYS  OF  RECEIPT  OF  A  LOCAL
 GOVERNMENT'S  LAW  OR ORDINANCE, THE DIVISION SHALL SUBMIT WRITTEN FIND-
 INGS TO THE LOCAL GOVERNMENT AS TO WHETHER THE LOCAL GOVERNMENT'S  LOCAL
 LAW OR ORDINANCE QUALIFIES FOR THE PROGRAM.
   4.  ALL LOCAL GOVERNMENTS WHO OPT-IN TO THE PROGRAM AND ARE DETERMINED
 BY THE DIVISION TO HAVE A QUALIFYING LOCAL LAW  OR  ORDINANCE  SHALL  BE
 ELIGIBLE FOR A TEN PERCENT INCREASE OF POINTS ON SUCH LOCAL GOVERNMENT'S
 CONSOLIDATED  FUNDING  APPLICATION,  A  TEN  PERCENT INCREASE IN AID AND
 INCENTIVES FOR MUNICIPALITIES AND AID AND INCENTIVES FOR  MUNICIPALITIES
 RELATED  PAYMENTS,  INCREASED ELIGIBILITY FOR INDIVIDUAL INFRASTRUCTURE,
 TRANSPORTATION, PARKS, AND ECONOMIC DEVELOPMENT GRANTS.
   § 482. LOW- AND MODERATE-INCOME  HOMEOWNERS  PROGRAM.  1.  WITHIN  ONE
 HUNDRED  EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE DIVISION
 SHALL ESTABLISH A LENDING PROGRAM TO ASSIST  LOW-INCOME  HOMEOWNERS  AND
 MODERATE-INCOME  HOMEOWNERS  IN  SECURING  FINANCING FOR THE CREATION OF
 ACCESSORY DWELLING UNITS.
   2. AN ACCESSORY DWELLING UNIT FINANCED WITH  THE  ASSISTANCE  OF  SUCH
 PROGRAM  SHALL,  IF SUCH ASSISTANCE IS IN THE FORM OF A FORGIVABLE GRANT
 AT A BELOW-MARKET RATE FOR A PERIOD OF NO LESS THAN THIRTY YEARS AND  IF
 ANY  SUCH  ASSISTANCE IS IN THE FORM OF A REPAYABLE LOAN, BE OFFERED FOR
 RENT AT A BELOW-MARKET RATE FOR A PERIOD OF FIFTEEN YEARS.
   3. SUCH PROGRAM SHALL BE FUNDED  THROUGH  CAPITAL  PROJECTS  APPROPRI-
 ATIONS  AND  REAPPROPRIATIONS SET FORTH IN THE STATE FISCAL YEAR HOUSING
 PROGRAM.
   4. WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS  ARTI-
 CLE, THE DIVISION SHALL ESTABLISH A PROGRAM TO PROVIDE TECHNICAL ASSIST-
 ANCE TO ALL HOMEOWNERS SEEKING TO CREATE AN ACCESSORY DWELLING UNIT, AND
 TO  PROTECT  TENANTS OF ACCESSORY DWELLING UNITS AGAINST DISCRIMINATION,
 UNREASONABLE RENT INCREASES AND UNWARRANTED EVICTIONS.
   5. AN ACCESSORY DWELLING UNIT FINANCED WITH  THE  ASSISTANCE  OF  SUCH
 PROGRAM SHALL BE LIMITED TO AN ANNUAL MAXIMUM RENT INCREASE OF THE LOWER
 OF (A) THREE PERCENT OR (B) ONE AND ONE-HALF TIMES THE ANNUAL PERCENTAGE
 CHANGE IN THE CONSUMER PRICE INDEX FOR THE REGION IN WHICH THE ACCESSORY
 DWELLING UNIT IS LOCATED.
   6.  THE  DIVISION  SHALL  PROMULGATE  PROGRAM  CRITERIA AND GUIDELINES
 NECESSARY TO CARRY OUT SUCH PROGRAM.
   § 2. Section 292 of the executive law  is  amended  by  adding  a  new
 subdivision 42 to read as follows:
   42.  THE  TERM  "HOUSING  ACCOMMODATION" AS USED IN THIS ARTICLE SHALL
 INCLUDE AN ACCESSORY DWELLING UNIT AS  DEFINED  IN  SUBDIVISION  ONE  OF
 SECTION FOUR HUNDRED EIGHTY OF THE REAL PROPERTY LAW.
   §  3.  Paragraph  (a) of subdivision 1 of section 296 of the executive
 law, as separately amended by chapters 202 and 748 of the laws of  2022,
 is amended to read as follows:
   (a)  For  an  employer or licensing agency, because of an individual's
 age, race, creed, color, national  origin,  citizenship  or  immigration
 status,  sexual  orientation,  gender  identity  or expression, military
 status, sex, disability, predisposing genetic characteristics,  familial
 S. 5172--A                          4
 
 status,  marital  status, or status as a victim of domestic violence, to
 refuse to hire or employ or to bar or to discharge from employment  such
 individual or to discriminate against such individual in compensation or
 in  terms,  conditions  or  privileges  of employment. IN THE CASE OF AN
 ACCESSORY DWELLING UNIT AS DEFINED IN SUBDIVISION ONE  OF  SECTION  FOUR
 HUNDRED  EIGHTY  OF  THE  REAL  PROPERTY  LAW,  THE  EXEMPTION  FROM THE
 PROVISIONS OF THIS PARAGRAPH FOR THE RENTAL OF A  HOUSING  ACCOMMODATION
 IN  A  BUILDING  WHICH CONTAINS HOUSING ACCOMMODATIONS FOR NOT MORE THAN
 TWO FAMILIES LIVING INDEPENDENTLY OF EACH OTHER, IF THE OWNER RESIDES IN
 ONE OF SUCH ACCOMMODATIONS, SHALL NOT APPLY.
   § 4. The real property tax law is amended  by  adding  a  new  section
 421-p to read as follows:
   §   421-P.  EXEMPTION  OF  CAPITAL  IMPROVEMENTS  TO  RESIDENTIAL  NEW
 CONSTRUCTION INVOLVING THE CREATION  OF  ACCESSORY  DWELLING  UNITS.  1.
 RESIDENTIAL   BUILDINGS   RECONSTRUCTED,  ALTERED,  IMPROVED,  OR  NEWLY
 CONSTRUCTED IN ORDER TO CREATE ONE OR MORE ADDITIONAL RESIDENTIAL DWELL-
 ING UNITS ON THE SAME PARCEL AS A PRE-EXISTING RESIDENTIAL  BUILDING  TO
 PROVIDE INDEPENDENT LIVING FACILITIES FOR ONE OR MORE PERSONS SUBSEQUENT
 TO  THE  EFFECTIVE DATE OF A LOCAL LAW OR RESOLUTION ENACTED PURSUANT TO
 THIS SECTION SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM LEVIES
 TO THE EXTENT PROVIDED HEREINAFTER. AFTER A PUBLIC HEARING, THE  GOVERN-
 ING BOARD OF A COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A LOCAL LAW AND A
 SCHOOL  DISTRICT, OTHER THAN A SCHOOL DISTRICT SUBJECT TO ARTICLE FIFTY-
 TWO OF THE EDUCATION LAW, MAY ADOPT A RESOLUTION TO GRANT THE  EXEMPTION
 AUTHORIZED  PURSUANT TO THIS SECTION. A COPY OF SUCH LOCAL LAW OR RESOL-
 UTION SHALL BE FILED WITH THE COMMISSIONER  AND  THE  ASSESSOR  OF  SUCH
 COUNTY,  CITY, TOWN OR VILLAGE WHO PREPARES THE ASSESSMENT ROLL ON WHICH
 THE TAXES OF SUCH COUNTY, CITY, TOWN, VILLAGE  OR  SCHOOL  DISTRICT  ARE
 LEVIED.
   2.  (A)  SUCH  BUILDINGS SHALL BE EXEMPT FOR A PERIOD OF FIVE YEARS TO
 THE EXTENT OF ONE HUNDRED PER CENTUM OF THE INCREASE IN  ASSESSED  VALUE
 THEREOF ATTRIBUTABLE TO SUCH RECONSTRUCTION, ALTERATION, IMPROVEMENT, OR
 NEW  CONSTRUCTION  FOR  SUCH  ADDITIONAL  RESIDENTIAL UNIT OR UNITS THAT
 PROVIDE INDEPENDENT LIVING FACILITIES FOR ONE OR MORE PERSONS,  AND  FOR
 AN ADDITIONAL PERIOD OF FIVE YEARS SUBJECT TO THE FOLLOWING:
   (I) THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY TWENTY-FIVE PER
 CENTUM  OF THE "EXEMPTION BASE" FOR EACH OF THE FIRST THREE YEARS DURING
 SUCH ADDITIONAL PERIOD AND SHALL BE  DECREASED  BY  A  FURTHER  TEN  PER
 CENTUM  OF  THE  "EXEMPTION  BASE" DURING EACH OF THE FINAL TWO YEARS OF
 SUCH ADDITIONAL PERIOD. THE EXEMPTION SHALL EXPIRE AT  THE  END  OF  THE
 EXTENDED  PERIOD. THE "EXEMPTION BASE" SHALL BE THE INCREASE IN ASSESSED
 VALUE AS DETERMINED IN THE INITIAL YEAR OF THE TERM  OF  THE  EXEMPTION,
 EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH.
   (II)  IN  ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN
 PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE
 RULES OF THE COMMISSIONER, THE EXEMPTION BASE SHALL BE MULTIPLIED  BY  A
 FRACTION,  THE  NUMERATOR  OF WHICH SHALL BE THE TOTAL ASSESSED VALUE OF
 THE PARCEL ON SUCH FINAL ASSESSMENT ROLL (AFTER ACCOUNTING FOR ANY PHYS-
 ICAL OR QUANTITY CHANGES TO THE PARCEL SINCE THE  IMMEDIATELY  PRECEDING
 ASSESSMENT  ROLL),  AND  THE  DENOMINATOR  OF  WHICH  SHALL BE THE TOTAL
 ASSESSED VALUE OF THE PARCEL ON THE IMMEDIATELY PRECEDING FINAL  ASSESS-
 MENT  ROLL.  THE  RESULT  SHALL BE THE NEW EXEMPTION BASE. THE EXEMPTION
 SHALL THEREUPON BE RECOMPUTED TO TAKE INTO  ACCOUNT  THE  NEW  EXEMPTION
 BASE,  NOTWITHSTANDING THE FACT THAT THE ASSESSOR RECEIVES CERTIFICATION
 OF THE CHANGE IN LEVEL OF ASSESSMENT AFTER THE COMPLETION,  VERIFICATION
 AND  FILING OF THE FINAL ASSESSMENT ROLL. IN THE EVENT THE ASSESSOR DOES
 S. 5172--A                          5
 
 NOT HAVE CUSTODY OF THE ROLL WHEN SUCH CERTIFICATION  IS  RECEIVED,  THE
 ASSESSOR  SHALL  CERTIFY  THE RECOMPUTED EXEMPTION TO THE LOCAL OFFICERS
 HAVING CUSTODY AND CONTROL OF THE ROLL,  AND  SUCH  LOCAL  OFFICERS  ARE
 HEREBY  DIRECTED AND AUTHORIZED TO ENTER THE RECOMPUTED EXEMPTION CERTI-
 FIED BY THE ASSESSOR ON THE ROLL. THE ASSESSOR SHALL GIVE WRITTEN NOTICE
 OF SUCH RECOMPUTED EXEMPTION TO THE PROPERTY OWNER, WHO MAY,  IF  HE  OR
 SHE  BELIEVES THAT THE EXEMPTION WAS RECOMPUTED INCORRECTLY, APPLY FOR A
 CORRECTION IN THE MANNER PROVIDED BY TITLE THREE OF ARTICLE FIVE OF THIS
 CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS.
   (III) SUCH EXEMPTION SHALL BE LIMITED TO TWO HUNDRED THOUSAND  DOLLARS
 IN  INCREASED  MARKET  VALUE OF THE PROPERTY ATTRIBUTABLE TO SUCH RECON-
 STRUCTION, ALTERATION, IMPROVEMENT, OR NEW CONSTRUCTION AND ANY INCREASE
 IN MARKET VALUE GREATER THAN SUCH AMOUNT SHALL NOT BE ELIGIBLE  FOR  THE
 EXEMPTION  PURSUANT  TO  THIS SECTION. FOR THE PURPOSES OF THIS SECTION,
 THE MARKET VALUE OF THE RECONSTRUCTION, ALTERATION, IMPROVEMENT, OR  NEW
 CONSTRUCTION  AS  AUTHORIZED BY SUBDIVISION ONE OF THIS SECTION SHALL BE
 EQUAL TO THE  INCREASED  ASSESSED  VALUE  ATTRIBUTABLE  TO  SUCH  RECON-
 STRUCTION,  ALTERATION,  IMPROVEMENT, OR NEW CONSTRUCTION DIVIDED BY THE
 CLASS ONE RATIO IN A SPECIAL ASSESSING UNIT OR THE MOST RECENTLY  ESTAB-
 LISHED  STATE  EQUALIZATION  RATE  OR  SPECIAL  EQUALIZATION RATE IN THE
 REMAINDER OF THE STATE, EXCEPT WHERE  THE  STATE  EQUALIZATION  RATE  OR
 SPECIAL  EQUALIZATION  RATE  EQUALS  OR  EXCEEDS NINETY-FIVE PERCENT, IN
 WHICH CASE THE INCREASE IN ASSESSED VALUE ATTRIBUTABLE  TO  SUCH  RECON-
 STRUCTION,  ALTERATION, IMPROVEMENT, OR NEW CONSTRUCTION SHALL BE DEEMED
 TO EQUAL THE MARKET VALUE OF SUCH RECONSTRUCTION,  ALTERATION,  IMPROVE-
 MENT, OR NEW CONSTRUCTION.
   (B)  NO  SUCH  EXEMPTION  SHALL  BE GRANTED FOR RECONSTRUCTION, ALTER-
 ATIONS, IMPROVEMENTS, OR NEW CONSTRUCTION UNLESS:
   (I) SUCH RECONSTRUCTION, ALTERATION, IMPROVEMENT, OR NEW  CONSTRUCTION
 WAS  COMMENCED  SUBSEQUENT  TO  THE  EFFECTIVE  DATE OF THE LOCAL LAW OR
 RESOLUTION ADOPTED PURSUANT TO SUBDIVISION ONE OF THIS SECTION; AND
   (II) THE VALUE OF SUCH RECONSTRUCTION, ALTERATION, IMPROVEMENT, OR NEW
 CONSTRUCTION EXCEEDS THREE THOUSAND DOLLARS; AND
   (III)   SUCH   RECONSTRUCTION,   ALTERATION,   IMPROVEMENT,   OR   NEW
 CONSTRUCTION  CREATED  ONE OR MORE ADDITIONAL RESIDENTIAL DWELLING UNITS
 ON THE SAME PARCEL AS THE PRE-EXISTING RESIDENTIAL BUILDING  TO  PROVIDE
 INDEPENDENT LIVING FACILITIES FOR ONE OR MORE PERSONS.
   (C) FOR PURPOSES OF THIS SECTION THE TERMS RECONSTRUCTION, ALTERATION,
 IMPROVEMENT, AND NEW CONSTRUCTION SHALL NOT INCLUDE ORDINARY MAINTENANCE
 AND REPAIRS.
   3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
 OF SUCH BUILDING ON A FORM PRESCRIBED BY THE COMMISSIONER. THE  APPLICA-
 TION  SHALL  BE  FILED  WITH  THE ASSESSOR OF THE CITY, TOWN, VILLAGE OR
 COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE
 APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY, TOWN, VILLAGE OR COUNTY.
   4. IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION  PURSU-
 ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
 BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM
 LEVIES  AS  HEREIN PROVIDED COMMENCING WITH THE ASSESSMENT ROLL PREPARED
 ON THE BASIS OF THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVISION THREE
 OF THIS SECTION. THE ASSESSED VALUE OF ANY EXEMPTION GRANTED PURSUANT TO
 THIS SECTION SHALL BE ENTERED BY THE ASSESSOR  ON  THE  ASSESSMENT  ROLL
 WITH  THE  TAXABLE PROPERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A
 SEPARATE COLUMN.
 S. 5172--A                          6
 
   5. FOR THE PURPOSES OF THIS SECTION, A RESIDENTIAL BUILDING SHALL MEAN
 ANY BUILDING OR STRUCTURE DESIGNED AND OCCUPIED EXCLUSIVELY FOR RESIDEN-
 TIAL PURPOSES BY NOT MORE THAN TWO FAMILIES.
   6.  IN THE EVENT THAT A BUILDING GRANTED AN EXEMPTION PURSUANT TO THIS
 SECTION CEASES TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES,  OR  TITLE
 THERETO  IS  TRANSFERRED  TO OTHER THAN THE HEIRS OR DISTRIBUTEES OF THE
 OWNER, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
   7. (A) A COUNTY, CITY, TOWN OR VILLAGE  MAY,  BY  ITS  LOCAL  LAW,  OR
 SCHOOL DISTRICT, BY ITS RESOLUTION:
   (I)  REDUCE  THE PER CENTUM OF EXEMPTION OTHERWISE ALLOWED PURSUANT TO
 THIS SECTION; AND
   (II) LIMIT ELIGIBILITY FOR THE EXEMPTION  TO  THOSE  FORMS  OF  RECON-
 STRUCTION,   ALTERATIONS,  IMPROVEMENTS,  OR  NEW  CONSTRUCTION  AS  ARE
 PRESCRIBED IN SUCH LOCAL LAW OR RESOLUTION.
   (B) NO SUCH LOCAL LAW OR RESOLUTION SHALL REPEAL AN EXEMPTION  GRANTED
 PURSUANT  TO  THIS  SECTION UNTIL THE EXPIRATION OF THE PERIOD FOR WHICH
 SUCH EXEMPTION WAS GRANTED.
   § 5. This act shall take effect immediately;  provided  however,  that
 section  four of this act shall apply to assessment rolls based on taxa-
 ble status dates occurring on or after such effective date.