S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2353
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 25, 2023
                                ___________
 
 Introduced  by  M. of A. FALL -- read once and referred to the Committee
   on Aging
 
 AN ACT to amend the real property tax law, in relation to exempting real
   property of an applicable battery park city property from payments  in
   lieu  of  taxes;  to  amend  a chapter of the laws of 2022 relating to
   directing the battery park city authority to extend its lease with the
   city of New York, as proposed in legislative bills numbers  S.  9032-B
   and A. 10414-A, in relation to directing the battery park city author-
   ity  to extend its restated and amended master lease by at least fifty
   years; and to repeal certain provisions of the real property  tax  law
   relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The section heading, paragraphs b and i of  subdivision  1,
 subdivision 2, the opening paragraph of paragraph b of subdivision 3 and
 subdivisions  6,  7 and 8 of section 467-c of the real property tax law,
 as amended by part A of a chapter of the laws of 2022 amending the  real
 property  tax law relating to authorizing eligibility for SCRIE and DRIE
 for tenants of properties located in battery park city, as  proposed  in
 legislative  bills  numbers  S. 9032-B and A. 10414-A, are amended and a
 new paragraph n of subdivision 1 is added to read as follows:
   Exemption for property owned by certain housing companies  or  [leased
 by] SUBLESSEES OF the battery park city authority and occupied by senior
 citizens or persons with disabilities.
   b.  "Dwelling unit" means that part of a dwelling in which an eligible
 head of the household resides and (1) which is subject to the provisions
 of[: (1)] Article II, IV, V, or XI of the private housing  finance  law;
 or (2) [that part of a dwelling] which was or continues to be subject to
 a mortgage insured or initially insured by the federal government pursu-
 ant  to  section  two  hundred  thirteen of the National Housing Act, as
 amended, in which an eligible head of the household resides; or  (3)  [a

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04140-01-3
              

 A. 2353                             2

 sublease  with  the]  WHICH  IS  WITHIN  AN APPLICABLE battery park city
 [authority] PROPERTY.
   i.  "Maximum  rent" means the maximum rent, excluding gas and electric
 utility charges, which has been authorized or approved  by  the  commis-
 sioner or the supervising agency or the legal regulated rent established
 for  the  dwelling unit pursuant to the provisions of either Article II,
 IV, V or XI of the private housing finance law,  or  the  rental  estab-
 lished  for  a  cooperatively  owned  dwelling unit previously regulated
 pursuant to the provisions of Article II, IV, V or  XI  of  the  private
 housing  finance  law;  or  such  approved rent for a dwelling unit in a
 dwelling subject to a mortgage  insured  or  initially  insured  by  the
 federal  government  pursuant  to  section  two  hundred thirteen of the
 National Housing Act, as amended; or such rent established for a  dwell-
 ing unit which was subject to a mortgage insured or initially insured by
 the  federal  government pursuant to section two hundred thirteen of the
 National Housing Act, as amended; or the rent established FOR AN  APPLI-
 CABLE  BATTERY  PARK  CITY  PROPERTY [pursuant to a regulatory agreement
 between the battery park city authority and the landlord].
   N. "APPLICABLE BATTERY PARK CITY PROPERTY" MEANS A  PROPERTY  THAT  IS
 (1) SUBJECT TO A LEASE OR SUBLEASE WITH THE BATTERY PARK CITY AUTHORITY;
 AND  (2)  HAS ONE OR MORE RESIDENTIAL UNITS WHICH ARE SUBJECT TO LIMITA-
 TIONS ON RENT INCREASES PURSUANT TO:
   (I) A CONTRACTUAL AGREEMENT WITH  THE  BATTERY  PARK  CITY  AUTHORITY,
 WHICH  MAY BE WITHIN THE LEASE OR SUBLEASE BETWEEN THE BATTERY PARK CITY
 AUTHORITY AND THE LESSEE OR SUBLESSEE; OR
   (II) A REGULATORY AGREEMENT WITH THE COMMISSIONER OR SUPERVISING AGEN-
 CY.
   2. The governing body of any city having a population of  one  million
 or  more,  acting  through its local legislative body or other governing
 agency is hereby authorized and empowered to adopt and amend local  laws
 or  ordinances  providing  that  real  property of a housing company [or
 landlord who is subject to a sublease with the battery park city author-
 ity] shall be exempt from real property taxes [or] AND THAT REAL PROPER-
 TY OF AN APPLICABLE BATTERY PARK CITY  PROPERTY  SHALL  BE  EXEMPT  FROM
 payments  in  lieu  of  taxes  (PILOT),  in  an amount equal to the rent
 increase exemptions actually credited to eligible  heads  of  households
 pursuant to this section. Any such exemption shall be in addition to any
 other exemption or abatement of taxes authorized by law.
   notwithstanding  any other provision of law, when a head of the house-
 hold to whom a then current, valid tax abatement  certificate  has  been
 issued  moves  his principal residence from one dwelling unit subject to
 this section, to the local emergency housing rent control law or to  the
 emergency tenant protection act of nineteen seventy-four to a subsequent
 dwelling  unit  which is subject to the provisions of articles II, IV, V
 or XI of the private housing finance law AND WHICH IS LOCATED WITHIN THE
 SAME MUNICIPAL CORPORATION, or which is or was  subject  to  a  mortgage
 insured  or  initially  insured  by  the  federal government pursuant to
 section two hundred thirteen of the National Housing  Act,  as  amended,
 [or  which  is subject to the provisions of a sublease between the land-
 lord and the battery park city authority] and which  is  located  within
 the  same  municipal corporation, OR WHICH IS AN APPLICABLE BATTERY PARK
 CITY PROPERTY, the head of the household may apply for a  tax  abatement
 certificate  relating  to  the  subsequent dwelling unit, subject to any
 terms and conditions imposed by reason of any fund created under  subdi-
 vision  eight of this section, and such certificate may provide that the
 head of the household shall be exempt from paying that  portion  of  the
 A. 2353                             3
 
 maximum  rent  or  legal regulated rent for the subsequent dwelling unit
 which is the least of the following:
   6.  Any such local law or ordinance may provide that upon receipt of a
 copy of the rent increase exemption order/tax abatement certificate, the
 housing company managing the dwelling unit or the landlord of the dwell-
 ing unit[, subject to a sublease with the] WITHIN AN APPLICABLE  battery
 park  city  [authority]  PROPERTY, of the eligible head of the household
 shall promptly accord to the eligible head of the household  covered  by
 such  order/certificate the appropriate credit against the monthly maxi-
 mum rent then or thereafter payable. To the extent the  full  amount  of
 such  credit  has not been accorded for any past period since the effec-
 tive date specified in the order/certificate,  the  housing  company  or
 landlord  shall credit the total aggregate amount not so credited to the
 monthly maximum rent next payable or to such subsequent monthly  maximum
 rents  as  the  supervising agency may authorize. It shall be illegal to
 collect any amount for which a rent increase exemption order/tax  abate-
 ment  certificate  provides  credit  or  to withhold credit for any such
 amounts already collected, and  collection  or  retention  of  any  such
 amount  for a dwelling unit occupied by such eligible head of the house-
 hold shall be deemed a rent overcharge, and upon conviction therefor the
 housing company and its directors and any employee and any agent respon-
 sible therefor or the landlord and any employee and any agent  responsi-
 ble  therefor shall be guilty of a misdemeanor, punishable by a fine not
 to exceed one thousand dollars or imprisonment not to exceed six months,
 or both.
   7. Any such local law or ordinance may provide that in order to obtain
 the benefits to which it is  entitled  under  this  section,  a  housing
 company or landlord [who is subject to a sublease with the] OF AN APPLI-
 CABLE battery park city [authority] PROPERTY must file with the collect-
 ing  officer charged with the duty of collecting taxes [or PILOT] of the
 municipality OR PILOT a sworn application, in such form as such  officer
 may  prescribe, for any quarterly period in which the housing company or
 landlord has accorded an eligible head of  the  household  an  exemption
 hereunder  from  the  payment  of  the maximum rent. Subject to prior or
 subsequent verification thereof, the collecting officer shall credit the
 total amount of such exemptions actually accorded to occupants of dwell-
 ing units contained in the property against the real property  taxes  or
 PILOT otherwise payable with respect to the property. The housing compa-
 ny  or  landlord  shall  attach  to  such application copies of all rent
 increase exemption orders/tax abatement certificates issued to  eligible
 heads of the household residing in dwelling units in such real property.
   8.  Any such local law or ordinance may provide that in the event that
 the real property of a housing company or [landlord who is subject to  a
 sublease  with  the]  APPLICABLE  battery park city [authority] PROPERTY
 containing one or more dwelling units shall be totally exempt from local
 and municipal real property taxes or PILOT for  any  fiscal  year  as  a
 result  of  the  exemptions  from maximum rent credited pursuant to this
 section, or otherwise, such municipality may make or  contract  to  make
 payments to a housing company or landlord in an amount not exceeding the
 amount  necessary  to  reimburse the housing company or landlord for the
 total dollar amount of all exemptions from the payment  of  the  maximum
 rent  accorded  pursuant to this section to eligible heads of the house-
 hold residing in dwelling units in such real property.   NOTWITHSTANDING
 THE  FOREGOING, THE BATTERY PARK CITY AUTHORITY SHALL HAVE NO OBLIGATION
 WHATSOEVER TO REIMBURSE A LANDLORD.
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   A municipality may create and establish a fund in order to provide for
 the payments made in accordance with contracts entered into pursuant  to
 this subdivision. There may be paid into such fund (1) all of the rental
 surcharges  collected  by the municipality from housing companies organ-
 ized  and  existing pursuant to Articles II, IV, V and XI of the private
 housing finance law and (2) any moneys appropriated  or  otherwise  made
 available by the municipality for the purpose of such fund.
   §  2. Subdivision 13 of section 467-c of the real property tax law, as
 added by part A of a chapter of the laws of 2022 amending the real prop-
 erty tax law relating to authorizing eligibility for SCRIE and DRIE  for
 tenants  of  properties  located  in  battery  park city, as proposed in
 legislative bills numbers S.  9032-B and A. 10414-A, is REPEALED.
   § 3. Section 1 of part C of a chapter of the laws of 2022 relating  to
 directing  the  battery park city authority to extend its lease with the
 city of New York, as proposed in legislative bills numbers S. 9032-B and
 A. 10414-A, is amended to read as follows:
   Section 1. Notwithstanding any provision of law to the contrary, with-
 in six months of the effective date of this act, the battery  park  city
 authority  shall  extend the expiration date of the RESTATED AND AMENDED
 MASTER lease [between the authority and the  city  of  New  York,  dated
 November  24,  1969 and] CAPTIONED "RESTATED AMENDED AGREEMENT OF LEASE"
 DATED JUNE 10, 1980, A MEMORANDUM OF WHICH WAS  recorded  [December  26,
 1969]  IN  THE OFFICE OF THE CITY REGISTER on page [1] 163 of reel [161]
 527, as supplemented, restated and  amended,  until  June  18,  2119  OR
 LATER.
   §  4.  This  act  shall  take  effect on the same date and in the same
 manner as part A of a chapter of the laws  of  2022  amending  the  real
 property  tax law relating to authorizing eligibility for SCRIE and DRIE
 for tenants of properties located in battery park city, as  proposed  in
 legislative  bills  numbers  S.    9032-B  and A. 10414-A, takes effect;
 provided, however, that section three of this act shall take  effect  on
 the  same date and in the same manner as part C of a chapter of the laws
 of 2022 relating to directing the battery park city authority to  extend
 its  lease  with  the city of New York, as proposed in legislative bills
 numbers S. 9032-B and A. 10414-A, takes effect.