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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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|---|---|
| Jan 03, 2024 |
referred to local government |
| May 30, 2023 |
print number 5790a |
| May 30, 2023 |
amend (t) and recommit to local government |
| Mar 16, 2023 |
referred to local government |
Senate Bill S5790A
2023-2024 Legislative Session
Authorizes a tax abatement for alterations and improvements to multiple dwellings
download bill text pdfSponsored By
(D) 11th Senate District
Current Bill Status - In Senate Committee Local Government Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Bill Amendments
2023-S5790 - Details
- Current Committee:
- Senate Local Government
- Law Section:
- Real Property Tax Law
- Laws Affected:
- Amd §489, RPT L
2023-S5790 - Sponsor Memo
BILL NUMBER: S5790
SPONSOR: STAVISKY
TITLE OF BILL:
An act to amend the real property tax law, in relation to authorizing a
tax exemption and a tax abatement for alterations and improvements to
multiple dwellings for purposes of preserving habitability in affordable
housing
SUMMARY OF PROVISIONS:
This bill amends section 489 of the Real Property Tax Law ("RPTL"),
known in the City of New York as the J-51 Program. Section 1 adds subdi-
vision 21 to section 489 of the RPTL that would authorize legislative
bodies in cities in which the Multiple Dwelling Law applies to adopt
laws providing certain tax exemption and abatement benefits to eligible
construction that is completed after June 29, 2023 and before June 30,
2027. Subdivision 21 names this new iteration of the J-51 Program, the
"Affordable Housing Rehabilitation Program," because eligible,
construction will be limited to construction on rental buildings with
affordability requirements and homeownership buildings with low assessed
valuations.
This bill makes significant reforms to the former J-51 Program, while
continuing to allow for both tax exemptions and abatements. New subdivi-
sion 21 would provide exemption benefits to rental buildings in which no
less than 50% of the dwelling units are affordable to individuals or
families whose household income does not exceed 80% of Area Median
Income, adjusted for family size. New subdivision 21 would allow such
buildings to receive a fifteen year exemption (phased-out over the final
five years) from an amount equal to five percent of such building's
assessed valuation as of the commencement date of the eligible
construction. Such a rental building would be required to execute and
record a restrictive declaration binding the building to the Affordable
Housing Rehabilitation Program requirements for fifteen years.
New subdivision 21 also provides exemption benefits to rental buildings
receiving substantial governmental assistance in furtherance of a
program for the development of affordable housing provided in accordance
with a regulatory agreement with the entity providing such assistance.
New subdivision 21 would allow such buildings to receive an exemption
from an amount equal to fifteen percent of the building's assessed valu-
ation as of the commencement date of the eligible construction. However,
if the applicable regulatory agreement has a remaining term that is
greater than fifteen years, such exemption would be coterminous with the
applicable regulatory agreement for a maximum of forty years and, in
either event, would phase-out over the final five years of the exemption
period.
The Affordable Housing Rehabilitation Program would also authorize
abatement benefits, which would be available not only to such rental
buildings, but also to the following categories of buildings: (1)
homeownership buildings that are at or below a $45,000 per dwelling unit
average assessed valuation limitation; (2) limited-profit housing compa-
ny rental and cooperative developments under Article II of the Private
Housing Finance Law ("PHFL"); and (3) redevelopment company rental and
cooperative developments under Article V of the PHFL. With respect to
all such eligible buildings, the abatement benefits could not exceed 70%
of the certified reasonable cost of the eligible construction, capped at
a maximum of 8 1/3% per year for no more than 20 years. And, with
respect to those buildings described in clauses (1)-(3) of this para-
graph, a further restriction would be imposed that the annual abatement
may not exceed 50% of the amount of taxes payable in such twelve-month
period.
New subdivision 21 would prohibit rent increases attributable to eligi-
ble construction where such eligible rental building receives Affordable
Housing Rehabilitation Program benefits. New subdivision 21 also would
establish strict application procedures for benefits pursuant to the
Affordable Housing Rehabilitation Program. Applications would have to
be filed after the completion date, but in no event later than four
months from such completion date. Further, the applications would
require non-refundable filing fee of $1,000, plus $75 for each dwelling
unit in - excess of six dwelling units. Applications would be denied
for being incomplete, and applicants would have one opportunity to
refile with a new non-refundable filing fee within fifteen days of the
denial issuance date. Applicants would also be required to respond to
checklists for follow-up information within 30 days (with a maximum of
three checklists issued for each application). The Affordable Housing
Rehabilitation Program seeks to discourage premature, incomplete and/or
fraudulent applications in the following additional ways: (1) imposing'a
re-inspection fee of ten times the actual cost of any additional
inspections needed to verify eligible Construction; (2) rejecting appli-
cations containing material misstatements of fact and barring resubmis-
sion of any such application for the building at issue for up to three
years; and (3) barring filers of more than six applications containing
material misstatements of fact within any twelve month period from
filing any new applications on behalf of any eligible buildings for a
period of up to five years.
New subdivision 21 also establishes criminal penalties for unauthorized
uses of dwelling units receiving benefits, and authorizes the inclusion
of a provision enabling the local housing agency administering the local
law to apply for the appointment of a receiver to remedy violations of
the Affordable Housing Rehabilitation Program's requirements. In addi-
tion, new subdivision 21 adds an explicit prohibition against tenant
harassment during the restriction period.' Finally, new subdivision 21
creates a private right of action for tenants harmed by violations of
the Affordable Housing Rehabilitation Program's requirements.
Section 2 would provide that the bill takes effect immediately.
JUSTIFICATION:
The former J-51 Program provided benefits for a variety of alterations
and improvements, including, but not limited to, the installation or
replacement of heating systems, plumbing, wiring, elevators, windows and
a range of other major capital improvements. In New York City, the
former J-51 Program authorized fourteen or thirty-four year exemptions
from taxes on any increase in assessed valuation resulting from those
alterations and improvements certified by New York City's Department of
Housing Preservation and Development ("HPD") and an abatement of proper-
ty taxes for construction costs certified by HPD.
Over the years, participation in the former J-51 Program has declined,
while relative expenditures have increased significantly due to ongoing
tax exemptions. Moreover, although rental buildings make up the largest
portion of former J-51 beneficiaries, the greatest exemption values are
currently granted to condominiums and cooperatives, many of which are in
high value areas. As a result, as New York City's affordable housing
crisis continues to escalate, the former J-51 Program has been giving
tax breaks without guaranteeing any affordable housing in return. At the
same time, given the complexities of the former J-51 Program, owners
performed work on their buildings with little understanding of the bene-
fit they would ultimately receive.
The bill creates the Affordable Housing Rehabilitation Program to
replace the former J-51 Program by adding subdivision 21 to section 489
of the RPTL, and allows cities to authorize and amend local legislation
implementing such programs through June 30, 2026, for eligible
construction completed between June 30, 2023 and June 29, 2027. New
subdivision 21 also eliminates the broad categories of construction
eligible for benefits under the former J-51 Program, many of which bene-
fitted luxury housing.
New subdivision 21 also eliminates benefits for increased cubic content.
The availability of such benefits overcomplicated eligibility determi-
nations under the former J-51 Program, and incentivized developers to
manipulate projects in order to avoid more restrictive requirements
imposed by other housing incentive programs. New subdivision 21 reduces
owner uncertainty regarding the value of the benefits that were granted
under the former J-51 Program by simplifying the tax exemption formula
and enriches such formula. It also limits exemptions to rental buildings
that meet prescribed affordable rent levels and tenant income
restrictions for rentals upon vacancy during the restriction period.
Other protections are built in for tenants of affordable rental units,
such as a private right of action for owner violations of the program
requirements. Even more critically, during the restriction period, the
owner of any such eligible rental building must waive the collection of
any rent adjustment granted by the New York State Division of Housing
and Community Renewal pursuant to rent regulation that is attributable
to eligible construction for which such eligible rental building
receives Affordable Housing Rehabilitation Program benefits.
To help offset the cost of the enriched Affordable Housing Rehabili-
tation Program exemption, new subdivision 21 reduces the abatement
allowance, which also would be available to certain condominium and
cooperative housing. Private cooperatives and condominiums eligible for
abatement benefits would be subject to a $45,000 average assessed valu-
ation limitation. Cooperative developments owned b y companies organized
under Articles II and V of the Private Housing Finance Law would remain
exempt from the assessed valuation limitation, but would agree to stay
in their respective programs for the duration of the Affordable Housing
Rehabilitation Program's fifteen year restriction period or, with
respect to Article V mutual redevelopment company developments, the
expiration of their Article V tax exemption. New subdivision 21 prohib-
its operation in whole or in part as a hotel and also requires the
affordable rental units and any market units that were rent regulated
before the Affordable Housing Rehabilitation Program benefits applica-
tion is filed, to remain rent regulated throughout the applicable
restriction period.
Thereafter, such units may be deregulated upon vacancy unless they were
subject to rent regulation for reasons other than the Affordable Housing
Rehabilitation Program. New subdivision 21 also requires strict applica-
tion procedures that are intended to minimize the waste, delays, and
inefficiencies created by the large volume of sloppy applications
submitted under the former J-51 Program.
New subdivision 21 limits Affordable Housing Rehabilitation Program
benefits to residential space, requires compliance with applicable laws,
and prohibits the issuance of benefits to properties that are (1) delin-
quent in the payment of charges owed to the government, or (2) receiving
concurrent benefits under other state or local tax incentive programs
except for those issued under the Private Housing Finance Law. New
subdivision 21 would also prohibit the receipt of concurrent exemptions
under the Affordable Housing Rehabilitation Program. These provisions
would help ensure that the program's benefits are efficiently targeted
towards advancing the program's goals of affordability and habitability.
New subdivision 21 requires an increased penalty when re-inspection by
the local housing agency is required. The penalty was created for, the
former J-51 Program to prevent applicants from starting the application
process prematurely, which wastes the local housing agency's limited and
valuable resources. Because the amount of the former penalty proved
insufficient to dissuade applicants from requesting inspections prior to
the satisfactory completion of the subject work, this proposal requires
that an applicant pay a penalty equivalent to ten times the actual cost
of any additional inspections. New subdivision 21 also requires the
imposition of a five-year bar on persons or entities who submit more
than six applications containing falsehoods within a one year period.
Too many applications are submitted with false information. This bar
would incentivize the preparation of applications with due care and
diligence.
New subdivision 21 authorizes the local housing agency's investigatory
powers, the revocation of benefits for non-compliance and the ability of
the locality to limit Affordable Housing Rehabilitation Program benefits
in such local law or ordinance. It also mandates continued compliance
with applicable law after benefits have been revoked for non-compliance.
These provisions are consistent with long-standing and still relevant
provisions of the former J-51 Program.
Finally, the new subdivision 21 would allow for the appointment of a
receiver to remedy any non-compliance in rental buildings receiving
benefits. The dearth of compliance and enforcement tools in the former
J-51 Program enabled too many projects to continue enjoying benefits
while violating the program's requirements. The pandemic and the effects
of climate change have underscored the need for a robust program incen-
tivizing the improved habitability of the State's existing housing stock
and the preservation of affordability. With an outdated and unpredict-
able benefit structure, owners are deterred from using the existing J-51
Program to fund essential repairs, and a disproportionate share of the
existing J-51 Program's benefits go to buildings for which the benefits
are not essential. The Affordable Housing Rehabilitation Program would
remedy these shortcomings without increasing the cost of the program.
Ultimately, enactment of this bill would allow for the preservation and
enhancement of many affordable rental units that will receive health,
safety, and sustainability upgrades that might otherwise have been
financially infeasible.
PRIOR LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS:
To be determined
EFFECTIVE DATE:
Immediately.
2023-S5790 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
5790
2023-2024 Regular Sessions
I N S E N A T E
March 16, 2023
___________
Introduced by Sen. STAVISKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to authorizing a
tax exemption and a tax abatement for alterations and improvements to
multiple dwellings for purposes of preserving habitability in afforda-
ble housing
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 489 of the real property tax law is amended by
adding a new subdivision 21 to read as follows:
21. AFFORDABLE HOUSING REHABILITATION PROGRAM. (A) DEFINITIONS. FOR
THE PURPOSES OF THIS SUBDIVISION:
(1) "AFFORDABLE RENT" SHALL MEAN THE MAXIMUM RENT WITHIN THE MARKETING
BAND THAT IS ALLOWED FOR AN AFFORDABLE RENTAL UNIT AS SUCH RENT IS
ESTABLISHED BY THE LOCAL HOUSING AGENCY.
(2) "AFFORDABLE RENTAL UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE
RENTAL BUILDING THAT:
(A) IS AFFORDABLE TO INDIVIDUALS OR FAMILIES WHOSE HOUSEHOLD INCOME
DOES NOT EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR
FAMILY SIZE; AND
(B) UPON EACH SUBSEQUENT RENTAL FOLLOWING A VACANCY DURING THE
RESTRICTION PERIOD, IS RENTED AT OR BELOW THE APPLICABLE AFFORDABLE RENT
AND OCCUPIED BY AN INDIVIDUAL OR FAMILY WHOSE HOUSEHOLD INCOME DOES NOT
EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY
SIZE, AT THE TIME THAT SUCH HOUSEHOLD INITIALLY OCCUPIES SUCH DWELLING
UNIT, PROVIDED THAT NOTHING IN THIS SUBDIVISION SHALL PROHIBIT OCCUPANCY
BY INDIVIDUALS OR FAMILIES WHOSE HOUSEHOLD INCOME IS LESS THAN EIGHTY
PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, NOR PROHIB-
IT THE OWNER FROM REQUIRING OCCUPANCY BY INDIVIDUALS OR FAMILIES WITH
SUCH LOWER HOUSEHOLD INCOME.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01617-01-3
S. 5790 2
(3) "CERTIFICATE OF ELIGIBILITY AND REASONABLE COST" SHALL MEAN A DOCUMENT ISSUED BY THE LOCAL HOUSING AGENCY THAT ESTABLISHES THAT A PROPERTY IS ELIGIBLE FOR REHABILITATION PROGRAM BENEFITS AND SETS FORTH THE CERTIFIED REASONABLE COST OF THE ELIGIBLE CONSTRUCTION FOR WHICH SUCH BENEFITS SHALL BE RECEIVED. (4) "CERTIFIED REASONABLE COST SCHEDULE" SHALL MEAN A TABLE PROVIDING MAXIMUM DOLLAR LIMITS FOR SPECIFIED ALTERATIONS AND IMPROVEMENTS, ESTAB- LISHED, AND UPDATED AS NECESSARY, BY THE LOCAL HOUSING AGENCY. (5) "CHECKLIST" SHALL MEAN A DOCUMENT THAT THE LOCAL HOUSING AGENCY ISSUES REQUESTING ADDITIONAL INFORMATION OR DOCUMENTATION THAT IS NECES- SARY FOR FURTHER ASSESSMENT OF AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST WHERE SUCH APPLICATION CONTAINED ALL INFORMATION AND DOCUMENTATION REQUIRED AT THE INITIAL FILING. (6) "COMMENCEMENT DATE" SHALL MEAN, WITH RESPECT TO ELIGIBLE CONSTRUCTION, THE DATE ON WHICH ANY PHYSICAL OPERATION UNDERTAKEN FOR THE PURPOSE OF PERFORMING SUCH ELIGIBLE CONSTRUCTION LAWFULLY BEGINS. (7) "COMPLETION DATE" SHALL MEAN, WITH RESPECT TO ELIGIBLE CONSTRUCTION, THE DATE ON WHICH: (A) EVERY PHYSICAL OPERATION UNDERTAKEN FOR THE PURPOSE OF ALL ELIGI- BLE CONSTRUCTION HAS CONCLUDED; AND (B) ALL SUCH ELIGIBLE CONSTRUCTION HAS BEEN COMPLETED TO A REASONABLE AND CUSTOMARY STANDARD THAT RENDERS SUCH ELIGIBLE CONSTRUCTION CAPABLE OF USE FOR THE PURPOSE FOR WHICH SUCH ELIGIBLE CONSTRUCTION WAS INTENDED. (8) "DWELLING UNIT" SHALL MEAN ANY RESIDENTIAL ACCOMMODATION IN A CLASS A MULTIPLE DWELLING THAT: (A) IS ARRANGED, DESIGNED, USED OR INTENDED FOR USE BY ONE OR MORE PERSONS LIVING TOGETHER AND MAINTAINING A COMMON HOUSEHOLD; (B) CONTAINS AT LEAST ONE ROOM; AND (C) CONTAINS WITHIN SUCH ACCOMMODATION LAWFUL SANITARY AND KITCHEN FACILITIES RESERVED FOR ITS OCCUPANTS. (9) "ELIGIBLE BUILDING" SHALL MEAN AN ELIGIBLE RENTAL BUILDING, AN ELIGIBLE HOMEOWNERSHIP BUILDING, OR AN ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING, PROVIDED THAT SUCH BUILDING CONTAINS THREE OR MORE DWELLING UNITS. (10) "ELIGIBLE CONSTRUCTION" SHALL MEAN ALTERATIONS OR IMPROVEMENTS TO AN ELIGIBLE BUILDING THAT: (A) ARE SPECIFICALLY IDENTIFIED ON THE CERTIFIED REASONABLE COST SCHE- DULE; (B) MEET THE MINIMUM SCOPE OF WORK THRESHOLD; (C) HAVE A COMPLETION DATE THAT IS AFTER JUNE TWENTY-NINTH, TWO THOU- SAND TWENTY-THREE AND PRIOR TO JUNE THIRTIETH, TWO THOUSAND TWENTY-SEVEN AND THAT IS NOT MORE THAN THIRTY MONTHS AFTER THEIR COMMENCEMENT DATE; AND (D) ARE NOT ATTRIBUTABLE TO ANY INCREASED CUBIC CONTENT IN SUCH ELIGI- BLE BUILDING. (11) "ELIGIBLE HOMEOWNERSHIP BUILDING" SHALL MEAN AN EXISTING BUILDING THAT: (A) IS A CLASS A MULTIPLE DWELLING OPERATED AS CONDOMINIUM OR COOPER- ATIVE HOUSING; (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND (C) HAS AN AVERAGE ASSESSED VALUATION, INCLUDING THE VALUATION OF THE LAND, THAT AS OF THE COMMENCEMENT DATE DOES NOT EXCEED THE HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION. S. 5790 3 (12) "ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING" SHALL MEAN AN EXIST- ING BUILDING THAT IS A CLASS A MULTIPLE DWELLING OWNED AND OPERATED BY EITHER: (A) A MUTUAL COMPANY THAT CONTINUES TO BE ORGANIZED AND OPERATED AS A MUTUAL COMPANY AND THAT HAS ENTERED INTO AND RECORDED A MUTUAL COMPANY REGULATORY AGREEMENT; OR (B) A MUTUAL REDEVELOPMENT COMPANY THAT CONTINUES TO BE ORGANIZED AND OPERATED AS A MUTUAL REDEVELOPMENT COMPANY AND THAT HAS ENTERED INTO AND RECORDED A MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT. (13) "ELIGIBLE RENTAL BUILDING" SHALL MEAN AN EXISTING BUILDING THAT: (A) IS A CLASS A MULTIPLE DWELLING IN WHICH ALL OF THE DWELLING UNITS ARE OPERATED AS RENTAL HOUSING; (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND (C) SATISFIES ONE OF THE FOLLOWING CONDITIONS: (I) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH BUILDING ARE AFFORDABLE RENTAL UNITS; (II) SUCH BUILDING IS OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY; OR (III) SUCH BUILDING IS THE RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE. (14) "EXISTING BUILDING" SHALL MEAN AN ENCLOSED STRUCTURE WHICH: (A) IS PERMANENTLY AFFIXED TO THE LAND; (B) HAS ONE OR MORE FLOORS AND A ROOF; (C) IS BOUNDED BY WALLS; (D) HAS AT LEAST ONE PRINCIPAL ENTRANCE UTILIZED FOR DAY-TO-DAY PEDES- TRIAN INGRESS AND EGRESS; (E) HAS A CERTIFICATE OF OCCUPANCY OR EQUIVALENT DOCUMENT THAT IS IN EFFECT PRIOR TO THE COMMENCEMENT DATE; AND (F) EXCLUSIVE OF THE LAND, HAS AN ASSESSED VALUATION OF MORE THAN ONE THOUSAND DOLLARS FOR THE FISCAL YEAR IMMEDIATELY PRECEDING THE COMMENCE- MENT DATE. (15) "HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION" SHALL MEAN AN AVERAGE ASSESSED VALUATION OF FORTY-FIVE THOUSAND DOLLARS PER DWELL- ING UNIT. (16) "LIMITED-PROFIT HOUSING COMPANY" SHALL HAVE THE SAME MEANING AS "COMPANY" SET FORTH IN SECTION TWELVE OF THE PRIVATE HOUSING FINANCE LAW. (17) "MARKET RENTAL UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE RENTAL BUILDING OTHER THAN AN AFFORDABLE RENTAL UNIT. (18) "MARKETING BAND" SHALL MEAN MAXIMUM RENT AMOUNTS RANGING FROM TWENTY PERCENT OF EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, TO THIRTY PERCENT OF EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE. (19) "MINIMUM SCOPE OF WORK THRESHOLD" SHALL MEAN A TOTAL AMOUNT OF CERTIFIED REASONABLE COST ESTABLISHED BY RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY, PROVIDED THAT SUCH AMOUNT SHALL BE NO LESS THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH DWELLING UNIT IN EXISTENCE ON THE COMPLETION DATE. (20) "MULTIPLE DWELLING" SHALL HAVE THE MEANING SET FORTH IN SECTION FOUR OF THE MULTIPLE DWELLING LAW. (21) "MUTUAL COMPANY" SHALL HAVE THE MEANING SET FORTH IN SECTION TWELVE OF THE PRIVATE HOUSING FINANCE LAW. (22) "MUTUAL COMPANY REGULATORY AGREEMENT" SHALL MEAN A BINDING AND IRREVOCABLE AGREEMENT BETWEEN A MUTUAL COMPANY AND THE COMMISSIONER OF HOUSING, THE MUTUAL COMPANY SUPERVISING AGENCY, THE NEW YORK CITY HOUS- ING DEVELOPMENT CORPORATION, OR THE NEW YORK STATE HOUSING FINANCE AGEN- S. 5790 4 CY PROHIBITING THE DISSOLUTION OR RECONSTITUTION OF SUCH MUTUAL COMPANY PURSUANT TO SECTION THIRTY-FIVE OF THE PRIVATE HOUSING FINANCE LAW FOR NOT LESS THAN FIFTEEN YEARS FROM THE COMMENCEMENT OF REHABILITATION PROGRAM BENEFITS FOR THE EXISTING BUILDING OWNED AND OPERATED BY SUCH MUTUAL COMPANY. (23) "MUTUAL COMPANY SUPERVISING AGENCY" SHALL HAVE THE SAME MEANING, WITH RESPECT TO ANY MUTUAL COMPANY, AS "SUPERVISING AGENCY" SET FORTH IN SECTION TWO OF THE PRIVATE HOUSING FINANCE LAW. (24) "MUTUAL REDEVELOPMENT COMPANY" SHALL HAVE THE SAME MEANING AS "MUTUAL" WHEN APPLIED TO A REDEVELOPMENT COMPANY AS SET FORTH IN SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW. (25) "MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT" SHALL MEAN A BINDING AND IRREVOCABLE AGREEMENT BETWEEN A MUTUAL REDEVELOPMENT COMPANY AND THE COMMISSIONER OF HOUSING, THE REDEVELOPMENT COMPANY SUPERVISING AGENCY, THE NEW YORK CITY HOUSING DEVELOPMENT CORPORATION, OR THE NEW YORK STATE HOUSING FINANCE AGENCY PROHIBITING THE DISSOLUTION OR RECON- STITUTION OF SUCH MUTUAL REDEVELOPMENT COMPANY PURSUANT TO SECTION ONE HUNDRED TWENTY-THREE OF THE PRIVATE HOUSING FINANCE LAW UNTIL THE EARLI- ER OF: (A) FIFTEEN YEARS FROM THE COMMENCEMENT OF REHABILITATION PROGRAM BENEFITS FOR THE EXISTING BUILDING OWNED AND OPERATED BY SUCH MUTUAL REDEVELOPMENT COMPANY; OR (B) THE EXPIRATION OF ANY TAX EXEMPTION GRANT- ED TO SUCH MUTUAL REDEVELOPMENT COMPANY PURSUANT TO SECTION ONE HUNDRED TWENTY-FIVE OF THE PRIVATE HOUSING FINANCE LAW. (26) "REDEVELOPMENT COMPANY" SHALL HAVE THE MEANING SET FORTH IN SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW. (27) "REDEVELOPMENT COMPANY SUPERVISING AGENCY" SHALL HAVE THE SAME MEANING, WITH RESPECT TO ANY REDEVELOPMENT COMPANY, AS "SUPERVISING AGENCY" SET FORTH IN SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW. (28) "REHABILITATION PROGRAM BENEFITS" SHALL MEAN EXEMPTION FROM OR ABATEMENT OF REAL PROPERTY TAXES PURSUANT TO THIS SUBDIVISION. (29) "RENT REGULATION" SHALL MEAN, COLLECTIVELY, THE EMERGENCY HOUSING RENT CONTROL LAW, ANY LOCAL LAW ENACTED PURSUANT TO THE LOCAL EMERGENCY HOUSING RENT CONTROL ACT, THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, ALL AS IN EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT ADDED THIS SUBDIVISION, OR AS ANY SUCH STATUTE IS AMENDED THEREAFT- ER, TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING SUBSTANTIALLY THE SAME SUBJECT MATTER. (30) "RESTRICTION PERIOD" SHALL MEAN, NOTWITHSTANDING ANY TERMINATION OR REVOCATION OF REHABILITATION PROGRAM BENEFITS PRIOR TO THE PERIOD DESCRIBED IN CLAUSE (A) OR (B), THE FOLLOWING: (A) THE PERIOD COMMENCING ON THE RESTRICTIVE DECLARATION DATE AND EXPIRING ON THE FIFTEENTH ANNIVERSARY THEREOF, OR SUCH ADDITIONAL PERIOD OF TIME AS MAY BE IMPOSED PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH SIX OF PARAGRAPH (F) OF THIS SUBDIVISION; OR (B) FOR AN EXEMPTION GRANTED PURSUANT TO CLAUSE (B) OF SUBPARAGRAPH ONE OF PARAGRAPH (B) OF THIS SUBDIVISION, THE PERIOD COMMENCING UPON THE RESTRICTIVE DECLARATION DATE AND EXPIRING ON THE DATE OF THE EXPIRATION OF SUCH EXEMPTION, OR SUCH ADDITIONAL PERIOD OF TIME AS MAY BE IMPOSED PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH SIX OF PARAGRAPH (F) OF THIS SUBDIVISION. (31) "RESTRICTIVE DECLARATION" SHALL MEAN THE DOCUMENT EXECUTED BY ALL PARTIES IN INTEREST TO AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY, WHICH PROVIDES THAT S. 5790 5 SUCH ELIGIBLE RENTAL BUILDING SHALL COMPLY WITH THE APPLICABLE REQUIRE- MENTS OF THIS SUBDIVISION, ANY LOCAL LAW OR ORDINANCE ENACTED PURSUANT TO THIS SUBDIVISION, AND ANY RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY. (32) "RESTRICTIVE DECLARATION DATE" SHALL MEAN THE DATE UPON WHICH A RESTRICTIVE DECLARATION IS RECORDED AND EFFECTIVE AGAINST AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY. (33) "SUBSTANTIAL GOVERNMENTAL ASSISTANCE" SHALL MEAN GRANTS, LOANS, OR SUBSIDIES FROM ANY FEDERAL, STATE OR LOCAL GOVERNMENTAL AGENCY OR INSTRUMENTALITY IN FURTHERANCE OF A PROGRAM FOR THE DEVELOPMENT OF AFFORDABLE HOUSING APPROVED BY THE LOCAL HOUSING AGENCY, PROVIDED THAT SUCH GRANTS, LOANS, OR SUBSIDIES ARE PROVIDED IN ACCORDANCE WITH A REGU- LATORY AGREEMENT ENTERED INTO WITH SUCH AGENCY OR INSTRUMENTALITY THAT IS IN EFFECT AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. (34) "SUBSTANTIAL INTEREST" SHALL MEAN AN OWNERSHIP INTEREST OF TEN PERCENT OR MORE. (B) EXEMPTION. (1) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER SUBDI- VISION OF THIS SECTION OR OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, ANY CITY TO WHICH THE MULTIPLE DWELLING LAW IS APPLICABLE, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY OR OTHER GOVERNING AGENCY, IS HEREBY AUTHORIZED AND EMPOWERED, TO AND INCLUDING JUNE THIRTIETH, TWO THOUSAND TWENTY-SIX, TO ADOPT AND AMEND LOCAL LAWS OR ORDINANCES PROVID- ING THAT: (A) AN ELIGIBLE RENTAL BUILDING IN WHICH ELIGIBLE CONSTRUCTION HAS BEEN COMPLETED, AND WHICH IS NOT THE RECIPIENT OF SUBSTANTIAL GOVERN- MENTAL ASSISTANCE, SHALL BE EXEMPT FROM REAL PROPERTY TAXATION FOR LOCAL PURPOSES AS PROVIDED HEREIN EQUAL TO FIVE PERCENT OF THE ASSESSED VALU- ATION OF SUCH BUILDING AS OF THE COMMENCEMENT DATE; (B) AN ELIGIBLE RENTAL BUILDING IN WHICH ELIGIBLE CONSTRUCTION HAS BEEN COMPLETED AND WHICH IS THE RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE SHALL BE EXEMPT FROM REAL PROPERTY TAXATION FOR LOCAL PURPOSES AS PROVIDED HEREIN EQUAL TO FIFTEEN PERCENT OF THE ASSESSED VALUATION OF SUCH BUILDING AS OF THE COMMENCEMENT DATE; AND (C) AN ELIGIBLE RENTAL BUILDING OWNED BY A LIMITED-PROFIT HOUSING COMPANY OR REDEVELOPMENT COMPANY, SHALL NOT BE ELIGIBLE FOR AN EXEMPTION FROM REAL PROPERTY TAXATION FOR LOCAL PURPOSES PURSUANT TO THIS SUBDIVI- SION. (2) SUCH EXEMPTION SHALL BEGIN WITH THE FIRST QUARTERLY TAX BILL IMME- DIATELY FOLLOWING THE RESTRICTIVE DECLARATION DATE AND SHALL CONTINUE FOR A PERIOD NOT TO EXCEED FIFTEEN YEARS IN THE AGGREGATE, AS FOLLOWS: (A) EXCEPT AS OTHERWISE PROVIDED HEREIN, FOR TEN YEARS, SUCH EXEMPTION SHALL BE EQUAL TO THE AMOUNT OF ASSESSED VALUATION THAT IS SUBJECT TO EXEMPTION UNDER THIS PARAGRAPH AS OF THE COMMENCEMENT DATE; (B) FOLLOWED BY ONE YEAR OF EXEMPTION FROM EIGHTY-THREE AND ONE-THIRD PERCENT OF SUCH AMOUNT; (C) FOLLOWED BY ONE YEAR OF EXEMPTION FROM SIXTY-SIX AND TWO-THIRDS PERCENT OF SUCH AMOUNT; (D) FOLLOWED BY ONE YEAR OF EXEMPTION FROM FIFTY PERCENT OF SUCH AMOUNT; (E) FOLLOWED BY ONE YEAR OF EXEMPTION FROM THIRTY-THREE AND ONE-THIRD PERCENT OF SUCH AMOUNT; (F) FOLLOWED BY ONE YEAR OF EXEMPTION FROM SIXTEEN AND TWO-THIRDS PERCENT OF SUCH AMOUNT; S. 5790 6 (G) AFTER WHICH THE AMOUNT OF ASSESSED VALUATION THAT HAD BEEN EXEMPT IS FULLY TAXABLE. (3) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH: (A) THE OWNER OF ANY SUCH ELIGIBLE RENTAL BUILDING, SHALL PAY, IN EACH YEAR IN WHICH REHABILITATION PROGRAM BENEFITS ARE IN EFFECT, REAL PROP- ERTY TAXES ON ANY AMOUNT OF THE ASSESSED VALUATION OF SUCH BUILDING THAT IS NOT EXEMPTED FROM REAL PROPERTY TAXATION PURSUANT TO SUBPARAGRAPH TWO OF THIS PARAGRAPH AND FOR WHICH THERE IS NO ABATEMENT THEREOF IN ACCORD- ANCE WITH PARAGRAPH (C) OF THIS SUBDIVISION, AS WELL AS ANY SUCH REAL PROPERTY TAXES RELATED TO THE LAND PORTION OF SUCH REAL PROPERTY; AND (B) IF ELIGIBLE CONSTRUCTION IS COMPLETED ON AN ELIGIBLE RENTAL BUILD- ING THAT IS THE RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE, THE EXEMPTION UNDER THIS PARAGRAPH SHALL CONTINUE FOR A PERIOD NOT TO EXCEED, IN THE AGGREGATE, THE GREATER OF FIFTEEN YEARS OR THE REMAINING TERM, UP TO FORTY YEARS, OF THE RELEVANT REGULATORY AGREEMENT WITH THE LOCAL HOUSING AGENCY IN EFFECT AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST, WITH THE FINAL FIVE YEARS OF SUCH EXEMPTION TO BE IMPLEMENTED IN ACCORDANCE WITH CLAUS- ES (B) THROUGH (F) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH, AFTER WHICH THE ASSESSED VALUE IS FULLY TAXABLE. (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NO ELIGIBLE RENTAL BUILDING SHALL RECEIVE CONCURRENT EXEMPTIONS UNDER THIS PARA- GRAPH, AND UPON THE COMMENCEMENT OF AN EXEMPTION UNDER THIS PARAGRAPH FOR AN ELIGIBLE RENTAL BUILDING, ANY PRIOR EXEMPTION UNDER THIS PARA- GRAPH FOR SUCH ELIGIBLE RENTAL BUILDING STILL IN EFFECT SHALL IMMEDIATE- LY TERMINATE. (C) ABATEMENT. ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE AN ABATEMENT OF REAL PROPERTY TAXES ON AN ELIGIBLE BUILDING IN WHICH ELIGI- BLE CONSTRUCTION HAS BEEN COMPLETED, PROVIDED THAT: (1) SUCH ABATEMENT SHALL NOT EXCEED SEVENTY PERCENT OF THE CERTIFIED REASONABLE COST OF THE ELIGIBLE CONSTRUCTION, AS DETERMINED UNDER RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY; (2) SUCH ABATEMENT SHALL NOT BE EFFECTIVE FOR MORE THAN TWENTY YEARS; (3) THE ANNUAL ABATEMENT OF REAL PROPERTY TAXES ON SUCH ELIGIBLE BUILDING SHALL NOT EXCEED EIGHT AND ONE-THIRD PERCENT OF THE TOTAL CERTIFIED REASONABLE COST OF SUCH ELIGIBLE CONSTRUCTION; (4) THE ANNUAL ABATEMENT OF REAL PROPERTY TAXES ON SUCH ELIGIBLE BUILDING IN ANY CONSECUTIVE TWELVE-MONTH PERIOD SHALL IN NO EVENT EXCEED THE AMOUNT OF REAL PROPERTY TAXES PAYABLE IN SUCH TWELVE-MONTH PERIOD FOR SUCH BUILDING, PROVIDED, HOWEVER, THAT SUCH ABATEMENT SHALL NOT EXCEED FIFTY PERCENT OF THE AMOUNT OF REAL PROPERTY TAXES PAYABLE IN SUCH TWELVE-MONTH PERIOD FOR ANY OF THE FOLLOWING: (A) AN ELIGIBLE RENTAL BUILDING OWNED BY A LIMITED-PROFIT HOUSING COMPANY OR A REDEVELOPMENT COMPANY; (B) AN ELIGIBLE HOMEOWNERSHIP BUILDING; AND (C) AN ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING; AND (5) SUCH ABATEMENT SHALL BECOME EFFECTIVE: (A) FOR ELIGIBLE RENTAL BUILDINGS OTHER THAN THOSE OWNED AND OPERATED BY LIMITED-PROFIT HOUSING COMPANIES, BEGINNING WITH THE FIRST QUARTERLY TAX BILL IMMEDIATELY FOLLOWING THE RESTRICTIVE DECLARATION DATE; (B) FOR ALL OTHER ELIGIBLE BUILDINGS, INCLUDING ELIGIBLE RENTAL BUILD- INGS OWNED AND OPERATED BY LIMITED-PROFIT HOUSING COMPANIES, BEGINNING WITH THE FIRST QUARTERLY TAX BILL IMMEDIATELY FOLLOWING THE DATE OF ISSUANCE OF THE CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. (D) AUTHORITY OF CITY TO ADOPT RULES AND REGULATIONS. ANY SUCH LOCAL LAW OR ORDINANCE SHALL AUTHORIZE THE ADOPTION OF RULES AND REGULATIONS, S. 5790 7 NOT INCONSISTENT WITH THIS SUBDIVISION, BY THE LOCAL HOUSING AGENCY AND ANY OTHER LOCAL AGENCY NECESSARY FOR THE IMPLEMENTATION OF THIS SUBDIVI- SION. (E) APPLICATIONS. (1) ANY SUCH LOCAL LAW OR ORDINANCE SHALL REQUIRE THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST PURSUANT TO THIS SUBDIVISION BE MADE AFTER THE COMPLETION DATE AND NO LATER THAN FOUR MONTHS FROM SUCH COMPLETION DATE. (2) SUCH APPLICATION SHALL INCLUDE EVIDENCE OF ELIGIBILITY FOR REHA- BILITATION PROGRAM BENEFITS AND EVIDENCE OF REASONABLE COST AS SHALL BE SATISFACTORY TO THE LOCAL HOUSING AGENCY INCLUDING, BUT NOT LIMITED TO, EVIDENCE SHOWING THE COST OF ELIGIBLE CONSTRUCTION. (3) THE LOCAL HOUSING AGENCY SHALL REQUIRE A NON-REFUNDABLE FILING FEE THAT SHALL BE PAID BY A CERTIFIED CHECK OR CASHIER'S CHECK UPON THE FILING OF AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. SUCH FEE SHALL BE (A) ONE THOUSAND DOLLARS, PLUS (B) SEVENTY-FIVE DOLLARS FOR EACH DWELLING UNIT IN EXCESS OF SIX DWELLING UNITS IN THE ELIGIBLE BUILDING THAT IS THE SUBJECT OF SUCH APPLICATION. (4) ANY APPLICATION THAT IS FILED PURSUANT TO THIS PARAGRAPH THAT IS MISSING ANY OF THE INFORMATION AND DOCUMENTATION REQUIRED AT INITIAL FILING BY SUCH LOCAL LAW OR ORDINANCE AND ANY RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY SHALL BE DENIED, PROVIDED THAT A NEW APPLICA- TION FOR THE SAME ELIGIBLE CONSTRUCTION, TOGETHER WITH A NEW NON-REFUND- ABLE FILING FEE, MAY BE FILED WITHIN FIFTEEN DAYS OF THE DATE OF ISSU- ANCE OF SUCH DENIAL. IF SUCH SECOND APPLICATION IS ALSO MISSING ANY SUCH REQUIRED INFORMATION AND DOCUMENTATION, IT SHALL BE DENIED AND NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMIT- TED. (5) THE FAILURE OF AN APPLICANT TO RESPOND TO ANY CHECKLIST WITHIN THIRTY DAYS OF THE DATE OF ITS ISSUANCE BY THE LOCAL HOUSING AGENCY SHALL RESULT IN DENIAL OF SUCH APPLICATION, AND NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMITTED. THE LOCAL HOUSING AGENCY SHALL ISSUE NOT MORE THAN THREE CHECKLISTS PER APPLICATION. AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST SHALL BE DENIED WHEN THE LOCAL HOUSING AGENCY DOES NOT HAVE A SUFFICIENT BASIS TO ISSUE A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST AFTER THE TIMELY RESPONSE OF AN APPLICANT TO THE THIRD CHECKLIST CONCERNING SUCH APPLICATION. AFTER THE LOCAL HOUSING AGENCY HAS DENIED AN APPLICATION FOR THE REASON DESCRIBED IN THE PRECEDING SENTENCE, SUCH AGENCY SHALL PERMIT NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION. (6) AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST SHALL ALSO INCLUDE AN AFFIDAVIT OF NO HARASSMENT. (A) SUCH AFFIDAVIT SHALL SET FORTH THE FOLLOWING INFORMATION: (I) THE NAME OF EVERY OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSORING THE ELIGIBLE CONSTRUCTION; AND (II) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE YEARS PRIOR TO THE COMPLETION DATE, BEEN FOUND TO HAVE HARASSED OR UNLAWFULLY EVICTED TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY, INCLUDING A NON-GOVERNMENTAL AGENCY HAVING APPROPRIATE LEGAL JURISDIC- TION, UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION. (B) NO ELIGIBLE BUILDING SHALL BE ELIGIBLE FOR AN EXEMPTION PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION OR AN ABATEMENT PURSUANT TO PARA- GRAPH (C) OF THIS SUBDIVISION WHERE: S. 5790 8 (I) ANY AFFIDAVIT REQUIRED UNDER THIS SUBPARAGRAPH HAS NOT BEEN FILED; OR (II) ANY SUCH AFFIDAVIT CONTAINS A WILLFUL MISREPRESENTATION OR OMIS- SION OF ANY MATERIAL FACT; OR (III) ANY OWNER OF RECORD OR OWNER OF A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSORING THE ELIGIBLE CONSTRUCTION HAS BEEN FOUND, BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY, INCLUDING A NON-GOVERNMENTAL AGENCY HAVING APPRO- PRIATE LEGAL JURISDICTION, UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION, TO HAVE, WITHIN THE FIVE YEARS PRIOR TO THE COMPLETION DATE, HARASSED OR UNLAWFULLY EVICTED TENANTS, UNTIL AND UNLESS THE FINDING IS REVERSED ON APPEAL. (C) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, THE CORPORATION COUNSEL OR OTHER LEGAL REPRESEN- TATIVE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE OR THE DISTRICT ATTORNEY OF ANY COUNTY, MAY INSTITUTE AN ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDICTION THAT MAY BE APPROPRIATE OR NECES- SARY TO DETERMINE WHETHER ANY OWNER OF RECORD OR OWNER OF A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSORING THE ELIGIBLE CONSTRUCTION HAS HARASSED OR UNLAWFULLY EVICTED TENANTS AS DESCRIBED IN THIS SUBPARAGRAPH. (7) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, THE LOCAL HOUSING AGENCY MAY REQUIRE BY RULES AND REGULATIONS THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST BE FILED ELECTRONICALLY. (F) ADDITIONAL REQUIREMENTS FOR AN ELIGIBLE RENTAL BUILDING OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY. ANY SUCH LOCAL LAW OR ORDINANCE SHALL, IN ADDITION TO ALL OTHER CONDITIONS OF ELIGIBILITY FOR REHABILITATION PROGRAM BENEFITS SET FORTH IN THIS SUBDI- VISION, REQUIRE THAT AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY, ALSO COMPLY WITH ALL PROVISIONS OF THIS PARAGRAPH. NOTWITHSTANDING THE FOREGOING, AN ELIGIBLE RENTAL BUILDING THAT IS THE RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE SHALL NOT BE REQUIRED TO COMPLY WITH THE PROVISIONS OF SUBPARAGRAPH THREE OF THIS PARAGRAPH. (1) NOTWITHSTANDING ANY PROVISION OF RENT REGULATION TO THE CONTRARY, ANY MARKET RENTAL UNIT WITHIN SUCH ELIGIBLE RENTAL BUILDING SUBJECT TO RENT REGULATION AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIF- ICATE OF ELIGIBILITY AND REASONABLE COST AND ANY AFFORDABLE RENTAL UNIT WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE SUBJECT TO RENT REGULATION UNTIL SUCH UNIT FIRST BECOMES VACANT AFTER THE EXPIRATION OF THE RESTRICTION PERIOD AT WHICH TIME SUCH UNIT, UNLESS IT WOULD BE SUBJECT TO RENT REGULATION FOR REASONS OTHER THAN THE PROVISIONS OF THIS SUBDI- VISION, SHALL BE DEREGULATED, PROVIDED, HOWEVER, THAT DURING THE RESTRICTION PERIOD, NO EXEMPTION OR EXCLUSION FROM ANY REQUIREMENT OF RENT REGULATION SHALL APPLY TO SUCH DWELLING UNITS. (2) THE OWNER OF AN ELIGIBLE RENTAL BUILDING SHALL EXECUTE AND RECORD A RESTRICTIVE DECLARATION, IN A FORM SATISFACTORY TO THE LOCAL HOUSING AGENCY, THAT REQUIRES COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVI- SION, SUCH LOCAL LAW OR ORDINANCE, AND THE RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY. SUCH RESTRICTIVE DECLARATION SHALL BIND THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING AND ITS SUCCESSORS AND ASSIGNS, AND MAY INCLUDE SUCH OTHER TERMS AND CONDITIONS AS THE LOCAL HOUSING AGENCY SHALL DETERMINE. S. 5790 9 (3) ADDITIONAL REQUIREMENTS FOR AN ELIGIBLE RENTAL BUILDING THAT IS NOT A RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE. (A) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH ELIGIBLE RENTAL BUILDING SHALL BE DESIGNATED AS AFFORDABLE RENTAL UNITS. THE RESTRICTIVE DECLARATION FOR ANY SUCH ELIGIBLE RENTAL BUILDING SHALL NOT BE EXECUTED AND RECORDED UNTIL LEASES IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF RENT REGULATION HAVE BEEN EXECUTED WITH RESPECT TO ALL AFFORDABLE RENTAL UNITS WITHIN SUCH ELIGIBLE RENTAL BUILDING AND ALL AFFORDABLE RENTAL UNITS HAVE BEEN REGISTERED IN ACCORDANCE WITH SUCH RENT REGULATION PROVISIONS. (B) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL ENSURE THAT NO AFFORDABLE RENTAL UNIT IS HELD OFF THE MARKET FOR A PERIOD THAT IS LONG- ER THAN REASONABLY NECESSARY. TO THAT END, SUCH OWNER SHALL NOTIFY THE LOCAL HOUSING AGENCY OF A VACANCY OF AN AFFORDABLE RENTAL UNIT WITHIN SUCH RENTAL BUILDING DURING THE RESTRICTION PERIOD NO LATER THAN FOUR- TEEN DAYS FOLLOWING SUCH VACANCY, AFTER WHICH SUCH AFFORDABLE RENTAL UNIT SHALL BE MARKETED IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY AND SHALL BE RENTED BY THE OWNER IN A PROMPT AND TIMELY MANNER. THE LOCAL HOUSING AGENCY MAY IMPOSE REQUIREMENTS UPON SUCH OWNER TO FACILITATE SUCH PROMPT AND TIMELY RENTAL, AS SET FORTH IN RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY. (C) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL, DURING THE RESTRICTION PERIOD, WAIVE THE COLLECTION OF ANY MAJOR CAPITAL IMPROVE- MENT RENT INCREASE GRANTED BY THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO RENT REGULATION THAT IS ATTRIBUTABLE TO ELIGIBLE CONSTRUCTION FOR WHICH SUCH ELIGIBLE RENTAL BUILDING RECEIVES REHABILITATION PROGRAM BENEFITS, AND SHALL FILE A DECLARATION WITH THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL PROVIDING SUCH WAIVER. (D) AN AFFORDABLE RENTAL UNIT SHALL NOT BE RENTED ON A TEMPORARY, TRANSIENT OR SHORT-TERM BASIS. EVERY LEASE AND RENEWAL THEREOF FOR AN AFFORDABLE RENTAL UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT THE OPTION OF THE TENANT, AND SHALL INCLUDE A NOTICE IN AT LEAST TWELVE POINT TYPE INFORMING SUCH TENANT OF THEIR RIGHTS PURSUANT TO THIS SUBDI- VISION, INCLUDING AN EXPLANATION OF THE RESTRICTIONS ON RENT INCREASES THAT MAY BE IMPOSED ON SUCH AFFORDABLE RENTAL UNIT. (E) THE LOCAL HOUSING AGENCY MAY ESTABLISH BY RULES AND REGULATIONS SUCH REQUIREMENTS AS THE LOCAL HOUSING AGENCY DEEMS NECESSARY OR APPRO- PRIATE FOR THE FOLLOWING: (I) DESIGNATING AFFORDABLE RENTAL UNITS, INCLUDING, BUT NOT LIMITED TO, DESIGNATING THE UNIT MIX AND DISTRIBUTION REQUIREMENTS OF SUCH AFFORDABLE RENTAL UNITS IN AN ELIGIBLE BUILDING; (II) MARKETING AFFORDABLE RENTAL UNITS UPON ANY VACANCY; AND (III) MONITORING COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION. SUCH REQUIREMENTS MAY INCLUDE, BUT NEED NOT BE LIMITED TO, RETAINING A MONITOR APPROVED BY THE LOCAL HOUSING AGENCY AND PAID FOR BY THE OWNER OF THE ELIGIBLE RENTAL BUILDING. (4) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL NOT ENGAGE IN OR CAUSE ANY HARASSMENT OF THE TENANTS OF SUCH ELIGIBLE RENTAL BUILDING OR UNLAWFULLY EVICT ANY SUCH TENANTS DURING THE RESTRICTION PERIOD. (5) NO DWELLING UNITS WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE CONVERTED TO COOPERATIVE OR CONDOMINIUM OWNERSHIP DURING THE RESTRICTION PERIOD. (6) ANY NON-COMPLIANCE OF AN ELIGIBLE RENTAL BUILDING WITH THE PROVISIONS OF THIS PARAGRAPH SHALL PERMIT THE LOCAL HOUSING AGENCY TO TAKE THE FOLLOWING ACTION: S. 5790 10 (A) EXTEND THE RESTRICTION PERIOD; (B) INCREASE THE NUMBER OF AFFORDABLE RENTAL UNITS IN SUCH ELIGIBLE RENTAL BUILDING; (C) IMPOSE A PENALTY OF NOT MORE THAN THE PRODUCT OF ONE THOUSAND DOLLARS PER INSTANCE OF NON-COMPLIANCE AND THE NUMBER OF DWELLING UNITS CONTAINED IN SUCH ELIGIBLE RENTAL BUILDING; AND (D) TERMINATE OR REVOKE ANY REHABILITATION PROGRAM BENEFITS IN ACCORD- ANCE WITH PARAGRAPH (N) OF THIS SUBDIVISION. (G) COMPLIANCE WITH APPLICABLE LAW. ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE THAT REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY ELIGIBLE BUILDING UNLESS AND UNTIL SUCH ELIGIBLE BUILD- ING COMPLIES WITH ALL APPLICABLE PROVISIONS OF LAW. (H) IMPLEMENTATION OF REHABILITATION PROGRAM BENEFITS. UPON ISSUANCE OF A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST AND PAYMENT OF OUTSTANDING FEES, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO TRANS- MIT SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE COST TO THE LOCAL AGENCY RESPONSIBLE FOR REAL PROPERTY TAX ASSESSMENT. UPON RECEIPT OF A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST, THE LOCAL AGENCY RESPON- SIBLE FOR REAL PROPERTY TAX ASSESSMENT SHALL CERTIFY THE AMOUNT OF VALUE TO BE EXEMPT FROM TAXATION AND THE AMOUNT OF TAXES TO BE ABATED PURSUANT TO PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION, RESPECTIVELY, AND PURSU- ANT TO SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE COST PROVIDED BY THE LOCAL HOUSING AGENCY. (I) OUTSTANDING TAXES AND CHARGES. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR AN ELIGIBLE BUILDING IN EITHER OF THE FOLLOWING CASES: (1) THERE ARE OUTSTANDING REAL ESTATE TAXES OR WATER AND SEWER CHARGES OR PAYMENTS IN LIEU OF TAXES THAT ARE DUE AND OWING AS OF THE LAST DAY OF THE TAX PERIOD PRECEDING THE DATE OF THE RECEIPT OF THE CERTIFICATE OF ELIGIBILITY AND REASONABLE COST BY THE LOCAL AGENCY RESPONSIBLE FOR REAL PROPERTY TAX ASSESSMENT; OR (2) REAL ESTATE TAXES OR WATER AND SEWER CHARGES DUE AT ANY TIME DURING THE AUTHORIZED TERM OF SUCH BENEFITS REMAIN UNPAID FOR ONE YEAR AFTER THE SAME ARE DUE AND PAYABLE. (J) ADDITIONAL LIMITATIONS ON ELIGIBILITY. ANY SUCH LOCAL LAW OR ORDI- NANCE SHALL ALSO PROVIDE THAT: (1) REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY ELIGIBLE BUILDING RECEIVING TAX EXEMPTION OR ABATEMENT CONCURRENTLY FOR REHABILITATION OR NEW CONSTRUCTION UNDER ANY OTHER PROVISION OF STATE OR LOCAL LAW OR ORDINANCE WITH THE EXCEPTION OF ANY ELIGIBLE CONSTRUCTION TO AN ELIGIBLE BUILDING RECEIVING A TAX EXEMPTION OR ABATEMENT UNDER THE PROVISIONS OF THE PRIVATE HOUSING FINANCE LAW; (2) REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY ITEM OF ELIGIBLE CONSTRUCTION IN AN ELIGIBLE BUILDING IF SUCH ELIGIBLE BUILD- ING IS RECEIVING TAX EXEMPTION OR ABATEMENT FOR THE SAME OR A SIMILAR ITEM OF ELIGIBLE CONSTRUCTION AS OF THE DECEMBER THIRTY-FIRST PRECEDING THE DATE OF APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST FOR SUCH REHABILITATION PROGRAM BENEFITS; (3) WHERE THE ELIGIBLE CONSTRUCTION INCLUDES OR BENEFITS A PORTION OF AN ELIGIBLE BUILDING THAT IS NOT OCCUPIED FOR DWELLING PURPOSES, THE ASSESSED VALUATION OF SUCH ELIGIBLE BUILDING AND THE COST OF THE ELIGI- BLE CONSTRUCTION SHALL BE APPORTIONED SO THAT REHABILITATION PROGRAM BENEFITS SHALL NOT BE PROVIDED FOR ELIGIBLE CONSTRUCTION MADE FOR OTHER THAN DWELLING PURPOSES; AND (4) REHABILITATION PROGRAM BENEFITS SHALL NOT BE APPLIED TO ABATE OR REDUCE THE TAXES UPON THE LAND PORTION OF REAL PROPERTY, WHICH SHALL S. 5790 11 CONTINUE TO BE TAXED BASED UPON THE ASSESSED VALUATION OF THE LAND AND THE APPLICABLE TAX RATE AT THE TIME SUCH TAXES ARE LEVIED. (K) RE-INSPECTION PENALTY. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT IF THE LOCAL HOUSING AGENCY CANNOT VERIFY THE ELIGIBLE CONSTRUCTION CLAIMED BY AN APPLICANT UPON THE FIRST INSPECTION BY THE LOCAL HOUSING AGENCY OF THE ELIGIBLE BUILDING, SUCH APPLICANT SHALL BE REQUIRED TO PAY TEN TIMES THE ACTUAL COST OF ANY ADDITIONAL INSPECTION NEEDED TO VERIFY SUCH ELIGIBLE CONSTRUCTION. (L) STRICT LIABILITY FOR INACCURATE APPLICATIONS. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT IF THE LOCAL HOUSING AGENCY DETER- MINES THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASON- ABLE COST CONTAINS A MATERIAL MISSTATEMENT OF FACT, THE LOCAL HOUSING AGENCY MAY REJECT SUCH APPLICATION AND BAR THE SUBMISSION OF ANY OTHER APPLICATION PURSUANT TO THIS SUBDIVISION WITH RESPECT TO SUCH ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED THREE YEARS. AN APPLICANT SHALL NOT BE RELIEVED FROM LIABILITY UNDER THIS PARAGRAPH BECAUSE IT SUBMITTED ITS APPLICATION UNDER A MISTAKEN BELIEF OF FACT. FURTHERMORE, ANY PERSON OR ENTITY THAT FILES MORE THAN SIX APPLICATIONS CONTAINING SUCH A MATERIAL MISSTATEMENT OF FACT WITHIN ANY TWELVE MONTH PERIOD SHALL BE BARRED FROM SUBMITTING ANY NEW APPLICATION FOR REHABILITATION PROGRAM BENEFITS ON BEHALF OF ANY ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED FIVE YEARS. (M) INVESTIGATORY AUTHORITY. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO ALLOW THE LOCAL HOUSING AGENCY TO REQUIRE SUCH CERTIFICATIONS AND CONSENTS NECESSARY TO ACCESS RECORDS, INCLUDING OTHER TAX RECORDS, AS MAY BE DEEMED APPROPRIATE TO ENFORCE THE ELIGIBILITY REQUIREMENTS OF THIS SUBDIVISION. ANY SUCH LOCAL LAW OR ORDINANCE SHALL FURTHER PROVIDE THAT, FOR PURPOSES OF DETERMINING AND CERTIFYING ELIGIBILITY FOR REHA- BILITATION PROGRAM BENEFITS AND THE REASONABLE COST OF ANY ELIGIBLE CONSTRUCTION, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO: (1) ADMINISTER OATHS TO AND TAKE THE TESTIMONY OF ANY PERSON, INCLUD- ING, BUT NOT LIMITED TO, THE OWNER OF SUCH ELIGIBLE BUILDING; (2) ISSUE SUBPOENAS REQUIRING THE ATTENDANCE OF SUCH PERSONS AND THE PRODUCTION OF ANY BILLS, BOOKS, PAPERS OR OTHER DOCUMENTS AS IT MAY DEEM NECESSARY; (3) MAKE PRELIMINARY ESTIMATES OF THE MAXIMUM REASONABLE COST OF SUCH ELIGIBLE CONSTRUCTION; (4) ESTABLISH MAXIMUM ALLOWABLE COSTS OF SPECIFIED UNITS, FIXTURES OR WORK IN SUCH ELIGIBLE CONSTRUCTION; (5) REQUIRE THE SUBMISSION OF PLANS AND SPECIFICATIONS OF SUCH ELIGI- BLE CONSTRUCTION BEFORE THE COMMENCEMENT THEREOF; (6) REQUIRE PHYSICAL ACCESS TO INSPECT THE ELIGIBLE BUILDING; AND (7) ON AN ANNUAL BASIS, REQUIRE THE SUBMISSION OF LEASES FOR ANY DWELLING UNIT IN A BUILDING GRANTED A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. (N) TERMINATION OR REVOCATION. ANY SUCH LOCAL LAW OR ORDINANCE SHALL PROVIDE THAT FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION, ANY SUCH LOCAL LAW OR ORDINANCE, ANY RULES AND REGULATIONS PROMULGATED THEREUNDER, OR ANY RESTRICTIVE DECLARATION, MUTUAL COMPANY REGULATORY AGREEMENT, OR MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT ENTERED INTO THEREUNDER, MAY RESULT IN REVOCATION OF ANY REHABILITATION PROGRAM BENEFITS RETROACTIVE TO THE COMMENCEMENT THEREOF. SUCH TERMINATION OR REVOCATION SHALL NOT EXEMPT SUCH ELIGIBLE BUILDING FROM CONTINUED COMPLIANCE WITH THE REQUIREMENTS OF THIS SUBDIVISION, SUCH LOCAL LAW OR ORDINANCE, SUCH RULES AND REGULATIONS, AND SUCH RESTRICTIVE DECLARATION, MUTUAL COMPANY REGULATORY AGREEMENT, OR MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT. S. 5790 12 (O) CRIMINAL LIABILITY FOR UNAUTHORIZED USES. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT IN THE EVENT THAT ANY RECIPIENT OF REHABILITATION PROGRAM BENEFITS USES ANY DWELLING UNIT IN SUCH ELIGIBLE BUILDING IN VIOLATION OF THE REQUIREMENTS OF SUCH LOCAL LAW OR ORDINANCE AS ADOPTED PURSUANT TO THIS SUBDIVISION AND ANY RULES AND REGULATIONS PROMULGATED PURSUANT THERETO, SUCH RECIPIENT SHALL BE GUILTY OF AN UNCLASSIFIED MISDEMEANOR PUNISHABLE BY A FINE IN AN AMOUNT EQUIVALENT TO DOUBLE THE VALUE OF THE GAIN OF SUCH RECIPIENT FROM SUCH UNLAWFUL USE OR IMPRISONMENT FOR NOT MORE THAN NINETY DAYS, OR BOTH. (P) PRIVATE RIGHT OF ACTION. ANY PROSPECTIVE, PRESENT, OR FORMER TENANT OF AN ELIGIBLE RENTAL BUILDING MAY SUE TO ENFORCE THE REQUIRE- MENTS AND PROHIBITIONS OF THIS SUBDIVISION, ANY SUCH LOCAL LAW OR ORDI- NANCE, ANY RULES AND REGULATIONS PROMULGATED THEREUNDER, OR ANY RESTRIC- TIVE DECLARATION ENTERED INTO THEREUNDER, IN THE SUPREME COURT OF NEW YORK. ANY SUCH INDIVIDUAL HARMED BY REASON OF A VIOLATION OF SUCH REQUIREMENTS AND PROHIBITIONS MAY SUE THEREFOR IN THE SUPREME COURT OF NEW YORK ON BEHALF OF HIMSELF OR HERSELF, AND SHALL RECOVER THREEFOLD THE DAMAGES SUSTAINED AND THE COST OF THE SUIT, INCLUDING A REASONABLE ATTORNEY'S FEE. THE LOCAL HOUSING AGENCY MAY USE ANY COURT DECISION UNDER THIS PARAGRAPH THAT IS ADVERSE TO THE OWNER OF AN ELIGIBLE BUILD- ING AS THE BASIS FOR FURTHER ENFORCEMENT ACTION. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN ACTION BY A TENANT OF AN ELIGIBLE RENTAL BUILDING UNDER THIS PARAGRAPH MUST BE COMMENCED WITHIN SIX YEARS FROM THE DATE OF THE LATEST VIOLATION. (Q) APPOINTMENT OF RECEIVER. IN ADDITION TO THE REMEDIES FOR NON-COM- PLIANCE PROVIDED FOR IN SUBPARAGRAPH SIX OF PARAGRAPH (F) OF THIS SUBDI- VISION, ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE THAT THE LOCAL HOUSING AGENCY MAY MAKE APPLICATION FOR THE APPOINTMENT OF A RECEIVER IN ACCORDANCE WITH THE PROCEDURES CONTAINED IN SUCH LOCAL LAW OR ORDINANCE. ANY RECEIVER APPOINTED PURSUANT TO THIS PARAGRAPH SHALL BE AUTHORIZED, IN ADDITION TO ANY OTHER POWERS CONFERRED BY LAW, TO EFFECT COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION, SUCH LOCAL LAW OR ORDINANCE, AND RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY. ANY EXPENDITURES INCURRED BY THE RECEIVER TO AFFECT SUCH COMPLIANCE SHALL CONSTITUTE A DEBT OF THE OWNER AND A LIEN UPON THE PROPERTY, AND UPON THE RENTS AND INCOME THEREOF, IN ACCORDANCE WITH THE PROCEDURES CONTAINED IN SUCH LOCAL LAW OR ORDINANCE. THE LOCAL HOUSING AGENCY IN ITS DISCRETION MAY PROVIDE FUNDS TO BE EXPENDED BY THE RECEIVER, AND SUCH FUNDS SHALL CONSTITUTE A DEBT RECOVERABLE FROM THE OWNER IN ACCORDANCE WITH APPLICA- BLE LOCAL LAWS OR ORDINANCES. (R) AUTHORITY OF CITY TO LIMIT LOCAL LAW. WHERE A CITY ENACTS OR AMENDS A LOCAL LAW OR ORDINANCE UNDER THIS SUBDIVISION, SUCH LOCAL LAW OR ORDINANCE MAY RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY, SCOPE OR AMOUNT OF REHABILITATION PROGRAM BENEFITS UNDER THE LOCAL LAW OR ORDI- NANCE IN ANY MANNER, PROVIDED THAT THE LOCAL LAW OR ORDINANCE MAY NOT GRANT REHABILITATION PROGRAM BENEFITS BEYOND THOSE PROVIDED IN THIS SUBDIVISION. § 2. This act shall take effect immediately.
2023-S5790A (ACTIVE) - Details
- Current Committee:
- Senate Local Government
- Law Section:
- Real Property Tax Law
- Laws Affected:
- Amd §489, RPT L
2023-S5790A (ACTIVE) - Sponsor Memo
BILL NUMBER: S5790A Revised 5/25/2023
SPONSOR: STAVISKY
TITLE OF BILL:
An act to amend the real property tax law, in relation to authorizing a
tax abatement for alterations and improvements to multiple dwellings
SUMMARY OF PROVISIONS:
This bill amends section 489 of the Real Property Tax Law ("RPTL"),
known in the City of New York as the J-51 Program. Section 1 adds subdi-
vision 21 to section 489 of the RPTL that would authorize legislative
bodies in cities in which the Multiple Dwelling Law applies to adopt
laws providing certain tax exemption and abatement benefits to eligible
construction that is completed after June 29, 2022 and before June 30,
2026. Subdivision 21 names this new iteration of the J-51 Program, the
"Affordable Housing Rehabilitation Program," because eligible,
construction will be limited to construction on rental buildings with
affordability requirements and homeownership buildings with low assessed
valuations.
This bill makes significant reforms to the former J-51 Program, while
continuing to allow for both tax exemptions and abatements. New subdivi-
sion 21 would provide exemption benefits to rental buildings in which no
less than 50% of the dwelling units are affordable to individuals or
families whose household income does not exceed 80% of Area Median
Income, adjusted for family size. New subdivision 21 would allow such
buildings to receive a fifteen year exemption (phased-out over the final
five years) from an amount equal to five percent of such building's
assessed valuation as of the commencement date of the eligible
construction. Such a rental building would be required to execute and
record a restrictive declaration binding the building to the Affordable
Housing Rehabilitation Program requirements for fifteen years.
New subdivision 21 also provides exemption benefits to rental buildings
receiving substantial governmental assistance in furtherance of a
program for the development of affordable housing provided in accordance
with a regulatory agreement with the entity providing such assistance.
New subdivision 21 would allow such buildings to receive an exemption
from an amount equal to fifteen percent of the building's assessed valu-
ation as of the commencement date of the eligible construction. However,
if the applicable regulatory agreement has a remaining term that is
greater than fifteen years, such exemption would be coterminous with the
applicable regulatory agreement for a maximum of forty years and, in
either event, would phase-out over the final five years of the exemption
period.
The Affordable Housing Rehabilitation Program would also authorize
abatement benefits, which would be available not only to such rental
buildings, but also to the following categories of buildings: (1)
homeownership buildings that are at or below a $45,000 per dwelling unit
average assessed valuation limitation; (2) limited-profit housing compa-
ny rental and cooperative developments under Article II of the Private
Housing Finance Law ("PHFL"); and (3) redevelopment company rental and
cooperative developments under Article V of the PHFL. With respect to
all such eligible buildings, the abatement benefits could not exceed 70%
of the certified reasonable cost of the eligible construction, capped at
a maximum of 8 1/3% per year for no more than 20 years. And, with
respect to those buildings described in clauses (1)-(3) of this para-
graph, a further restriction would be imposed that the annual abatement
may not exceed 50% of the amount of taxes payable in such twelve-month
period.
New subdivision 21 would prohibit rent increases attributable to eligi-
ble construction where such eligible rental building receives Affordable
Housing Rehabilitation Program benefits. New subdivision 21 also would
establish strict application procedures for benefits pursuant to the
Affordable Housing Rehabilitation Program. Applications would have to
be filed after the completion date, but in no event later than four
months from such completion date. Further, the applications would
require non-refundable filing fee of $1,000, plus $75 for each dwelling
unit in -.excess of six dwelling units. Applications would be denied
for being incomplete, and applicants would have one opportunity to
refile with a new non-refundable filing fee within fifteen days of the
denial issuance date. Applicants would also be required to respond to
checklists for follow-up information within 30 days (with a maximum of
three checklists issued for each application). The Affordable Housing
Rehabilitation Program seeks to discourage premature, incomplete and/or
fraudulent applications in the following additional ways: (1) imposing'a
re-inspection fee of ten times the actual cost of any additional
inspections needed to verify eligible Construction; (2) rejecting appli-
cations containing material misstatements of fact and barring resubmis-
sion of any such application for the building at issue for up to three
years; and (3) barring filers of more than six applications containing
material misstatements of fact within any twelve month period from
filing any new applications on behalf of any eligible buildings for a
period of up to five years.
New subdivision 21 also establishes criminal penalties for unauthorized
uses of dwelling units receiving benefits, and authorizes the inclusion
of a provision enabling the local housing agency administering the local
law to apply for the appointment of a receiver to remedy violations of
the Affordable Housing Rehabilitation Program's requirements. In addi-
tion, new subdivision 21 adds an explicit prohibition against tenant
harassment during the restriction period.' Finally, new subdivision 21
creates a private right of action for tenants harmed by violations of
the Affordable Housing Rehabilitation Program's requirements.
Section 2 would provide that the bill takes effect immediately.
JUSTIFICATION:
The former J-51 Program provided benefits for a variety of alterations
and improvements, including, but not limited to, the installation or
replacement of heating systems, plumbing, wiring, elevators, windows and
a range of other major capital improvements. In New York City, the
former J-51 Program authorized fourteen or thirty-four year exemptions
from taxes on any increase in assessed valuation resulting from those
alterations and improvements certified by New York City's Department of
Housing Preservation and Development ("HPD") and an abatement of proper-
ty taxes for construction costs certified by HPD.
Over the years, participation in the former J-51 Program has declined,
while relative expenditures have increased significantly due to ongoing
tax exemptions. Moreover, although rental buildings make up the largest
portion of former J-51 beneficiaries, the greatest exemption values are
currently granted to condominiums and cooperatives, many of which are in
high value areas. As a result, as New York City's affordable housing
crisis continues to escalate, the former J-51 Program has been giving
tax breaks without guaranteeing any affordable housing in return. At the
same time, given the complexities of the former J-51 Program, owners
performed work on their buildings with little understanding of the bene-
fit they would ultimately receive.
The bill creates the Affordable Housing Rehabilitation Program to
replace the former J-51 Program by adding subdivision 21 to section 489
of the RPTL, and allows cities to authorize and amend local legislation
implementing such programs through June 30, 2026, for eligible
construction completed between June 30, 2022 and June 29, 2026. New
subdivision 21 also eliminates the broad categories of construction
eligible for benefits under the former J-51 Program, many of which bene-
fitted luxury housing.
New subdivision 21 also eliminates benefits for increased cubic content.
The availability of such benefits overcomplicated eligibility determi-
nations under the former J-51 Program, and incentivized developers to
manipulate projects in order to avoid more restrictive requirements
imposed by other housing incentive programs. New subdivision 21 reduces
owner uncertainty regarding the value of the benefits that were granted
under the former J-51 Program by simplifying the tax exemption formula
and enriches such formula. It also limits exemptions to rental buildings
that meet prescribed affordable rent levels and tenant income
restrictions for rentals upon vacancy during the restriction period.
Other protections are built in for tenants of affordable rental units,
such as a private right of action for owner violations of the program
requirements. Even more critically, during the restriction period, the
owner of any such eligible rental building must waive the collection of
any rent adjustment granted by the New York State Division of Housing
and Community Renewal pursuant to rent regulation that is attributable
to eligible construction for which such eligible rental building
receives Affordable Housing Rehabilitation Program benefits.
To help offset the cost of the enriched Affordable Housing Rehabili-
tation Program exemption, new subdivision 21 reduces the abatement
allowance, which also would be available to certain condominium and
cooperative housing. Private cooperatives and condominiums eligible for
abatement benefits would be subject to a $45,000 average assessed valu-
ation limitation. Cooperative developments owned b y companies organized
under Articles II and V of the Private Housing Finance Law would remain
exempt from the assessed valuation limitation, but would agree to stay
in their respective programs for the duration of the Affordable Housing
Rehabilitation Program's fifteen year restriction period or, with
respect to Article V mutual redevelopment company developments, the
expiration of their Article V tax exemption. New subdivision 21 prohib-
its operation in whole or in part as a hotel and also requires the
affordable rental units and any market units that were rent regulated
before the Affordable Housing Rehabilitation Program benefits applica-
tion is filed, to remain rent regulated throughout the applicable
restriction period.
Thereafter, such units may be deregulated upon vacancy unless they were
subject to rent regulation for reasons other than the Affordable Housing
Rehabilitation Program. New subdivision 21 also requires strict applica-
tion procedures that are intended to minimize the waste, delays, and
inefficiencies created by the large volume of sloppy applications
submitted under the former J-51 Program.
New subdivision 21 limits Affordable Housing Rehabilitation Program
benefits to residential space, requires compliance with applicable laws,
and prohibits the issuance of benefits to properties that are (1) delin-
quent in the payment of charges owed to the government, or (2) receiving
concurrent benefits under other state or local tax incentive programs
except for those issued under the Private Housing Finance Law. New
subdivision 21 would also prohibit the receipt of concurrent exemptions
under the Affordable Housing Rehabilitation Program. These provisions
would help ensure that the program's benefits are efficiently targeted
towards advancing the program's goals of affordability and habitability.
New subdivision 21 requires an increased penalty when re-inspection by
the local housing agency is required. The penalty was created for, the
former J-51 Program to prevent applicants from starting the application
process prematurely, which wastes the local housing agency's limited and
valuable resources. Because the amount of the former penalty proved
insufficient to dissuade applicants from requesting inspections prior to
the satisfactory completion of the subject work, this proposal requires
that an applicant pay a penalty equivalent to ten times the actual cost
of any additional inspections. New subdivision 21 also requires the
imposition of a five-year bar on persons or entities who submit more
than six applications containing falsehoods within a one year period.
Too many applications are submitted with false information. This bar
would incentivize the preparation of applications with due care and
diligence.
New subdivision 21 authorizes the local housing agency's investigatory
powers, the revocation of benefits for non-compliance and the ability of
the locality to limit Affordable Housing Rehabilitation Program benefits
in such local law or ordinance. It also mandates continued compliance
with applicable law after benefits have been revoked for non-compliance.
These provisions are consistent with long-standing and still relevant
provisions of the former J-51 Program.
Finally, the new subdivision 21 would allow for the appointment of a
receiver to remedy any non-compliance in rental buildings receiving
benefits. The dearth of compliance and enforcement tools in the former
J-51 Program enabled too many projects to continue enjoying benefits
while violating the program's requirements. The pandemic and the effects
of climate change have underscored the need for a robust program incen-
tivizing the improved habitability of the State's existing housing stock
and the preservation of affordability. With an outdated and unpredict-
able benefit structure, owners are deterred from using the existing J-51
Program to fund essential repairs, and a disproportionate share of the
existing J-51 Program's benefits go to buildings for which the benefits
are not essential. The Affordable Housing Rehabilitation Program would
remedy these shortcomings without increasing the cost of the program.
Ultimately, enactment of this bill would allow for the preservation and
enhancement of many affordable rental units that will receive health,
safety, and sustainability upgrades that might otherwise have been
financially infeasible.
PRIOR LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS:
To be determined
EFFECTIVE DATE:
Immediately.
2023-S5790A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
5790--A
2023-2024 Regular Sessions
I N S E N A T E
March 16, 2023
___________
Introduced by Sen. STAVISKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the real property tax law, in relation to authorizing a
tax abatement for alterations and improvements to multiple dwellings
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 489 of the real property tax law is amended by
adding a new subdivision 21 to read as follows:
21. (A) DEFINITIONS. FOR PURPOSES OF THIS SUBDIVISION:
(1) "AFFORDABLE RENT" SHALL MEAN THE MAXIMUM RENT WITHIN THE MARKETING
BAND THAT IS ALLOWED FOR AN AFFORDABLE RENTAL UNIT AS SUCH RENT IS
ESTABLISHED BY THE LOCAL HOUSING AGENCY.
(2) "AFFORDABLE RENTAL UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE
RENTAL BUILDING THAT, AS OF THE FILING OF AN APPLICATION FOR A CERTIF-
ICATE OF ELIGIBILITY AND REASONABLE COST, HAS A RENT AT OR BELOW THE
APPLICABLE AFFORDABLE RENT.
(3) "CERTIFICATE OF ELIGIBILITY AND REASONABLE COST" SHALL MEAN A
DOCUMENT ISSUED BY THE LOCAL HOUSING AGENCY THAT ESTABLISHES THAT A
PROPERTY IS ELIGIBLE FOR REHABILITATION PROGRAM BENEFITS AND SETS FORTH
THE CERTIFIED REASONABLE COST OF THE ELIGIBLE CONSTRUCTION FOR WHICH
SUCH BENEFITS SHALL BE RECEIVED.
(4) "CERTIFIED REASONABLE COST SCHEDULE" SHALL MEAN A TABLE PROVIDING
MAXIMUM DOLLAR LIMITS FOR SPECIFIED ALTERATIONS AND IMPROVEMENTS, ESTAB-
LISHED, AND UPDATED AS NECESSARY, BY THE LOCAL HOUSING AGENCY.
(5) "CHECKLIST" SHALL MEAN A DOCUMENT THAT THE LOCAL HOUSING AGENCY
ISSUES REQUESTING ADDITIONAL INFORMATION OR DOCUMENTATION THAT IS NECES-
SARY FOR FURTHER ASSESSMENT OF AN APPLICATION FOR A CERTIFICATE OF
ELIGIBILITY AND REASONABLE COST WHERE SUCH APPLICATION CONTAINED ALL
INFORMATION AND DOCUMENTATION REQUIRED AT THE INITIAL FILING.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01617-02-3
S. 5790--A 2 (6) "COMMENCEMENT DATE" SHALL MEAN, WITH RESPECT TO ELIGIBLE CONSTRUCTION, THE DATE ON WHICH ANY PHYSICAL OPERATION UNDERTAKEN FOR THE PURPOSE OF PERFORMING SUCH ELIGIBLE CONSTRUCTION LAWFULLY BEGINS. (7) "COMPLETION DATE" SHALL MEAN, WITH RESPECT TO ELIGIBLE CONSTRUCTION, THE DATE ON WHICH: (A) EVERY PHYSICAL OPERATION UNDERTAKEN FOR THE PURPOSE OF ALL ELIGI- BLE CONSTRUCTION HAS CONCLUDED; AND (B) ALL SUCH ELIGIBLE CONSTRUCTION HAS BEEN COMPLETED TO A REASONABLE AND CUSTOMARY STANDARD THAT RENDERS SUCH ELIGIBLE CONSTRUCTION CAPABLE OF USE FOR THE PURPOSE FOR WHICH SUCH ELIGIBLE CONSTRUCTION WAS INTENDED. (8) "DWELLING UNIT" SHALL MEAN ANY RESIDENTIAL ACCOMMODATION IN A CLASS A MULTIPLE DWELLING THAT: (A) IS ARRANGED, DESIGNED, USED OR INTENDED FOR USE BY ONE OR MORE PERSONS LIVING TOGETHER AND MAINTAINING A COMMON HOUSEHOLD; (B) CONTAINS AT LEAST ONE ROOM; AND (C) CONTAINS WITHIN SUCH ACCOMMODATION, LAWFUL SANITARY AND KITCHEN FACILITIES RESERVED FOR ITS OCCUPANTS. (9) "ELIGIBLE BUILDING" SHALL MEAN AN ELIGIBLE RENTAL BUILDING, AN ELIGIBLE HOMEOWNERSHIP BUILDING, OR AN ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING, PROVIDED THAT SUCH BUILDING CONTAINS THREE OR MORE DWELLING UNITS. (10) "ELIGIBLE CONSTRUCTION" SHALL MEAN ALTERATIONS OR IMPROVEMENTS TO AN ELIGIBLE BUILDING THAT: (A) ARE SPECIFICALLY IDENTIFIED ON THE CERTIFIED REASONABLE COST SCHE- DULE; (B) MEET THE MINIMUM SCOPE OF WORK THRESHOLD; (C) HAVE A COMPLETION DATE THAT IS AFTER JUNE TWENTY-NINTH, TWO THOU- SAND TWENTY-TWO AND PRIOR TO JUNE THIRTIETH, TWO THOUSAND TWENTY-SIX AND THAT IS NOT MORE THAN THIRTY MONTHS AFTER ITS COMMENCEMENT DATE; AND (D) ARE NOT ATTRIBUTABLE TO ANY INCREASED CUBIC CONTENT IN SUCH ELIGI- BLE BUILDING. (11) "ELIGIBLE HOMEOWNERSHIP BUILDING" SHALL MEAN AN EXISTING BUILDING THAT: (A) IS A CLASS A MULTIPLE DWELLING OPERATED AS CONDOMINIUM OR COOPER- ATIVE HOUSING; (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND (C) HAS AN AVERAGE ASSESSED VALUATION, INCLUDING THE VALUATION OF THE LAND, THAT AS OF THE COMMENCEMENT DATE DOES NOT EXCEED THE HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION. (12) "ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING" SHALL MEAN AN EXIST- ING BUILDING THAT IS A CLASS A MULTIPLE DWELLING OWNED AND OPERATED BY EITHER: (A) A MUTUAL COMPANY THAT CONTINUES TO BE ORGANIZED AND OPERATED AS A MUTUAL COMPANY AND THAT HAS ENTERED INTO AND RECORDED A MUTUAL COMPANY REGULATORY AGREEMENT; OR (B) A MUTUAL REDEVELOPMENT COMPANY THAT CONTINUES TO BE ORGANIZED AND OPERATED AS A MUTUAL REDEVELOPMENT COMPANY AND THAT HAS ENTERED INTO AND RECORDED A MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT. (13) "ELIGIBLE RENTAL BUILDING" SHALL MEAN AN EXISTING BUILDING THAT: (A) IS A CLASS A MULTIPLE DWELLING IN WHICH ALL OF THE DWELLING UNITS ARE OPERATED AS RENTAL HOUSING; (B) IS NOT OPERATING IN WHOLE OR IN PART AS A HOTEL; AND (C) SATISFIES ONE OF THE FOLLOWING CONDITIONS: (I) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH BUILDING ARE AFFORDABLE RENTAL UNITS; S. 5790--A 3 (II) SUCH BUILDING IS OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY; OR (III) SUCH BUILDING IS THE RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE. (14) "EXISTING BUILDING" SHALL MEAN AN ENCLOSED STRUCTURE WHICH: (A) IS PERMANENTLY AFFIXED TO THE LAND; (B) HAS ONE OR MORE FLOORS AND A ROOF; (C) IS BOUNDED BY WALLS; (D) HAS AT LEAST ONE PRINCIPAL ENTRANCE UTILIZED FOR DAY-TO-DAY PEDES- TRIAN INGRESS AND EGRESS; (E) HAS A CERTIFICATE OF OCCUPANCY OR EQUIVALENT DOCUMENT THAT IS IN EFFECT PRIOR TO THE COMMENCEMENT DATE; AND (F) EXCLUSIVE OF THE LAND, HAS AN ASSESSED VALUATION OF MORE THAN ONE THOUSAND DOLLARS FOR THE FISCAL YEAR IMMEDIATELY PRECEDING THE COMMENCE- MENT DATE. (15) "HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION" SHALL MEAN AN AVERAGE ASSESSED VALUATION OF FORTY-FIVE THOUSAND DOLLARS PER DWELL- ING UNIT. (16) "LIMITED-PROFIT HOUSING COMPANY" SHALL HAVE THE SAME MEANING AS "COMPANY" SET FORTH IN SECTION TWELVE OF THE PRIVATE HOUSING FINANCE LAW. (17) "MARKET RENTAL UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE RENTAL BUILDING OTHER THAN AN AFFORDABLE RENTAL UNIT. (18) "MARKETING BAND" SHALL MEAN MAXIMUM RENT AMOUNTS RANGING FROM TWENTY PERCENT OF EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, TO THIRTY PERCENT OF EIGHTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE. (19) "MINIMUM SCOPE OF WORK THRESHOLD" SHALL MEAN A TOTAL AMOUNT OF CERTIFIED REASONABLE COST ESTABLISHED BY RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY, PROVIDED THAT SUCH AMOUNT SHALL BE NO LESS THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH DWELLING UNIT IN EXISTENCE ON THE COMPLETION DATE. (20) "MULTIPLE DWELLING" SHALL HAVE THE MEANING AS SET FORTH IN SECTION FOUR OF THE MULTIPLE DWELLING LAW. (21) "MUTUAL COMPANY" SHALL HAVE THE MEANING AS SET FORTH IN SECTION TWELVE OF THE PRIVATE HOUSING FINANCE LAW. (22) "MUTUAL COMPANY REGULATORY AGREEMENT" SHALL MEAN A BINDING AND IRREVOCABLE AGREEMENT BETWEEN A MUTUAL COMPANY AND THE COMMISSIONER OF HOUSING, THE MUTUAL COMPANY SUPERVISING AGENCY, THE NEW YORK CITY HOUS- ING DEVELOPMENT CORPORATION, OR THE NEW YORK STATE HOUSING FINANCE AGEN- CY PROHIBITING THE DISSOLUTION OR RECONSTITUTION OF SUCH MUTUAL COMPANY PURSUANT TO SECTION THIRTY-FIVE OF THE PRIVATE HOUSING FINANCE LAW FOR NOT LESS THAN FIFTEEN YEARS FROM THE COMMENCEMENT OF REHABILITATION PROGRAM BENEFITS FOR THE EXISTING BUILDING OWNED AND OPERATED BY SUCH MUTUAL COMPANY. (23) "MUTUAL COMPANY SUPERVISING AGENCY" SHALL HAVE THE SAME MEANING, WITH RESPECT TO ANY MUTUAL COMPANY, AS "SUPERVISING AGENCY" SET FORTH IN SECTION TWO OF THE PRIVATE HOUSING FINANCE LAW. (24) "MUTUAL REDEVELOPMENT COMPANY" SHALL HAVE THE SAME MEANING AS "MUTUAL" WHEN APPLIED TO A REDEVELOPMENT COMPANY, AS SET FORTH IN SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW. (25) "MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT" SHALL MEAN A BINDING AND IRREVOCABLE AGREEMENT BETWEEN A MUTUAL REDEVELOPMENT COMPANY AND THE COMMISSIONER OF HOUSING, THE REDEVELOPMENT COMPANY SUPERVISING AGENCY, THE NEW YORK CITY HOUSING DEVELOPMENT CORPORATION, OR THE NEW YORK STATE HOUSING FINANCE AGENCY PROHIBITING THE DISSOLUTION OR RECON- S. 5790--A 4 STITUTION OF SUCH MUTUAL REDEVELOPMENT COMPANY PURSUANT TO SECTION ONE HUNDRED TWENTY-THREE OF THE PRIVATE HOUSING FINANCE LAW UNTIL THE EARLI- ER OF: (A) FIFTEEN YEARS FROM THE COMMENCEMENT OF REHABILITATION PROGRAM BENEFITS FOR THE EXISTING BUILDING OWNED AND OPERATED BY SUCH MUTUAL REDEVELOPMENT COMPANY; OR (B) THE EXPIRATION OF ANY TAX EXEMPTION GRANTED TO SUCH MUTUAL REDE- VELOPMENT COMPANY PURSUANT TO SECTION ONE HUNDRED TWENTY-FIVE OF THE PRIVATE HOUSING FINANCE LAW. (26) "REDEVELOPMENT COMPANY" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW. (27) "REDEVELOPMENT COMPANY SUPERVISING AGENCY" SHALL HAVE THE SAME MEANING, WITH RESPECT TO ANY REDEVELOPMENT COMPANY, AS "SUPERVISING AGENCY" SET FORTH IN SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW. (28) "REHABILITATION PROGRAM BENEFITS" SHALL MEAN ABATEMENT OF REAL PROPERTY TAXES PURSUANT TO THIS SUBDIVISION. (29) "RENT REGULATION" SHALL MEAN, COLLECTIVELY, THE EMERGENCY HOUSING RENT CONTROL LAW, ANY LOCAL LAW ENACTED PURSUANT TO THE LOCAL EMERGENCY HOUSING RENT CONTROL ACT, THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE, THE RENT STABILIZATION CODE, AND THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, ALL AS IN EFFECT AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE THAT ADDED THIS SUBDIVISION, OR AS ANY SUCH STATUTE IS AMENDED THEREAFT- ER, TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESSING SUBSTANTIALLY THE SAME SUBJECT MATTER. (30) "RESTRICTION PERIOD" SHALL MEAN, NOTWITHSTANDING ANY TERMINATION OR REVOCATION OF REHABILITATION PROGRAM BENEFITS PRIOR TO SUCH PERIOD, FIFTEEN YEARS FROM THE INITIAL RECEIPT OF REHABILITATION PROGRAM BENE- FITS, OR SUCH ADDITIONAL PERIOD OF TIME AS MAY BE IMPOSED PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH FOUR OF PARAGRAPH (E) OF THIS SUBDIVISION. (31) "SUBSTANTIAL GOVERNMENTAL ASSISTANCE" SHALL MEAN GRANTS, LOANS, OR SUBSIDIES FROM ANY FEDERAL, STATE OR LOCAL GOVERNMENTAL AGENCY OR INSTRUMENTALITY IN FURTHERANCE OF A PROGRAM FOR THE DEVELOPMENT OF AFFORDABLE HOUSING APPROVED BY THE LOCAL HOUSING AGENCY, PROVIDED THAT SUCH GRANTS, LOANS, OR SUBSIDIES ARE PROVIDED IN ACCORDANCE WITH A REGU- LATORY AGREEMENT ENTERED INTO WITH SUCH AGENCY OR INSTRUMENTALITY THAT IS IN EFFECT AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. (32) "SUBSTANTIAL INTEREST" SHALL MEAN AN OWNERSHIP INTEREST OF TEN PERCENT OR MORE. (B) ABATEMENT. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER SUBDIVISION OF THIS SECTION OR OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, ANY CITY TO WHICH THE MULTIPLE DWELLING LAW IS APPLICABLE, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY OR OTHER GOVERNING AGENCY, IS HEREBY AUTHORIZED AND EMPOWERED, UNTIL AND INCLUDING JUNE THIRTIETH, TWO THOU- SAND TWENTY-FIVE, TO ADOPT AND AMEND LOCAL LAWS OR ORDINANCES PROVIDING AN ABATEMENT OF REAL PROPERTY TAXES ON AN ELIGIBLE BUILDING IN WHICH ELIGIBLE CONSTRUCTION HAS BEEN COMPLETED, PROVIDED THAT: (1) SUCH ABATEMENT SHALL NOT EXCEED SEVENTY PERCENT OF THE CERTIFIED REASONABLE COST OF THE ELIGIBLE CONSTRUCTION, AS DETERMINED UNDER RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY; (2) SUCH ABATEMENT SHALL NOT BE EFFECTIVE FOR MORE THAN TWENTY YEARS; (3) THE ANNUAL ABATEMENT OF REAL PROPERTY TAXES ON SUCH ELIGIBLE BUILDING SHALL NOT EXCEED EIGHT AND ONE-THIRD PERCENT OF THE TOTAL CERTIFIED REASONABLE COST OF SUCH ELIGIBLE CONSTRUCTION; S. 5790--A 5 (4) THE ANNUAL ABATEMENT OF REAL PROPERTY TAXES ON SUCH ELIGIBLE BUILDING IN ANY CONSECUTIVE TWELVE-MONTH PERIOD SHALL IN NO EVENT EXCEED THE AMOUNT OF REAL PROPERTY TAXES PAYABLE IN SUCH TWELVE-MONTH PERIOD FOR SUCH BUILDING, PROVIDED, HOWEVER, THAT SUCH ABATEMENT SHALL NOT EXCEED FIFTY PERCENT OF THE AMOUNT OF REAL PROPERTY TAXES PAYABLE IN SUCH TWELVE-MONTH PERIOD FOR ANY OF THE FOLLOWING: (A) AN ELIGIBLE RENTAL BUILDING OWNED BY A LIMITED-PROFIT HOUSING COMPANY OR A REDEVELOPMENT COMPANY; (B) AN ELIGIBLE HOMEOWNERSHIP BUILDING; AND (C) AN ELIGIBLE REGULATED HOMEOWNERSHIP BUILDING; AND (5) SUCH ABATEMENT SHALL BECOME EFFECTIVE BEGINNING WITH THE FIRST QUARTERLY TAX BILL IMMEDIATELY FOLLOWING THE DATE OF ISSUANCE OF THE CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. (C) AUTHORITY OF CITY TO ADOPT RULES AND REGULATIONS. ANY SUCH LOCAL LAW OR ORDINANCE SHALL AUTHORIZE THE ADOPTION OF RULES AND REGULATIONS, NOT INCONSISTENT WITH THIS SUBDIVISION, BY THE LOCAL HOUSING AGENCY AND ANY OTHER LOCAL AGENCY NECESSARY FOR THE IMPLEMENTATION OF THIS SUBDIVI- SION. (D) APPLICATIONS. (1) ANY SUCH LOCAL LAW OR ORDINANCE SHALL REQUIRE THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST PURSUANT TO THIS SUBDIVISION BE MADE AFTER THE COMPLETION DATE AND ON OR BEFORE THE LATER OF (A) FOUR MONTHS FROM THE EFFECTIVE DATE OF SUCH LOCAL LAW OR ORDINANCE; OR (B) FOUR MONTHS FROM SUCH COMPLETION DATE. (2) SUCH APPLICATION SHALL INCLUDE EVIDENCE OF ELIGIBILITY FOR REHA- BILITATION PROGRAM BENEFITS AND EVIDENCE OF REASONABLE COST AS SHALL BE SATISFACTORY TO THE LOCAL HOUSING AGENCY INCLUDING, BUT NOT LIMITED TO, EVIDENCE SHOWING THE COST OF ELIGIBLE CONSTRUCTION. (3) THE LOCAL HOUSING AGENCY SHALL REQUIRE A NON-REFUNDABLE FILING FEE THAT SHALL BE PAID BY A CERTIFIED CHECK OR CASHIER'S CHECK UPON THE FILING OF AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. SUCH FEE SHALL BE (A) ONE THOUSAND DOLLARS, PLUS (B) SEVENTY-FIVE DOLLARS FOR EACH DWELLING UNIT IN EXCESS OF SIX DWELLING UNITS IN THE ELIGIBLE BUILDING THAT IS THE SUBJECT OF SUCH APPLICATION. (4) ANY APPLICATION THAT IS FILED PURSUANT TO THIS PARAGRAPH THAT IS MISSING ANY OF THE INFORMATION AND DOCUMENTATION REQUIRED AT INITIAL FILING BY SUCH LOCAL LAW OR ORDINANCE AND ANY RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY SHALL BE DENIED, PROVIDED THAT A NEW APPLICA- TION FOR THE SAME ELIGIBLE CONSTRUCTION, TOGETHER WITH A NEW NON-REFUND- ABLE FILING FEE, MAY BE FILED WITHIN FIFTEEN DAYS OF THE DATE OF ISSU- ANCE OF SUCH DENIAL. IF SUCH SECOND APPLICATION IS ALSO MISSING ANY SUCH REQUIRED INFORMATION AND DOCUMENTATION, IT SHALL BE DENIED AND NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMIT- TED. (5) THE FAILURE OF AN APPLICANT TO RESPOND TO ANY CHECKLIST WITHIN THIRTY DAYS OF THE DATE OF ITS ISSUANCE BY THE LOCAL HOUSING AGENCY SHALL RESULT IN DENIAL OF SUCH APPLICATION, AND NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMITTED. THE LOCAL HOUSING AGENCY SHALL ISSUE NOT MORE THAN THREE CHECKLISTS PER APPLICATION. AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST SHALL BE DENIED WHEN THE LOCAL HOUSING AGENCY DOES NOT HAVE A SUFFICIENT BASIS TO ISSUE A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST AFTER THE TIMELY RESPONSE OF AN APPLICANT TO THE THIRD CHECKLIST CONCERNING SUCH APPLICATION. AFTER THE LOCAL HOUSING AGENCY HAS DENIED AN APPLICATION FOR THE REASON DESCRIBED IN THE PRECEDING SENTENCE, SUCH AGENCY SHALL PERMIT NO FURTHER APPLICATIONS FOR THE SAME ELIGIBLE CONSTRUCTION. S. 5790--A 6 (6) AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST SHALL ALSO INCLUDE AN AFFIDAVIT OF NO HARASSMENT. (A) SUCH AFFIDAVIT SHALL SET FORTH THE FOLLOWING INFORMATION: (I) THE NAME OF EVERY OWNER OF RECORD AND OWNER OF A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSORING THE ELIGIBLE CONSTRUCTION; AND (II) A STATEMENT THAT NONE OF SUCH PERSONS HAD, WITHIN THE FIVE YEARS PRIOR TO THE COMPLETION DATE, BEEN FOUND TO HAVE HARASSED OR UNLAWFULLY EVICTED TENANTS BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY, INCLUDING A NON-GOVERNMENTAL AGENCY HAVING APPROPRIATE LEGAL JURISDIC- TION, UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION. (B) NO ELIGIBLE BUILDING SHALL BE ELIGIBLE FOR AN ABATEMENT PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION WHERE: (I) ANY AFFIDAVIT REQUIRED UNDER THIS SUBPARAGRAPH HAS NOT BEEN FILED; (II) ANY SUCH AFFIDAVIT CONTAINS A WILLFUL MISREPRESENTATION OR OMIS- SION OF ANY MATERIAL FACT; OR (III) ANY OWNER OF RECORD OR OWNER OF A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSORING THE ELIGIBLE CONSTRUCTION HAS BEEN FOUND, BY JUDGMENT OR DETERMINATION OF A COURT OR AGENCY, INCLUDING A NON-GOVERNMENTAL AGENCY HAVING APPRO- PRIATE LEGAL JURISDICTION, UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW REGULATING RENTS OR ANY STATE OR LOCAL LAW RELATING TO HARASSMENT OF TENANTS OR UNLAWFUL EVICTION, TO HAVE, WITHIN THE FIVE YEARS PRIOR TO THE COMPLETION DATE, HARASSED OR UNLAWFULLY EVICTED TENANTS, UNTIL AND UNLESS THE FINDING IS REVERSED ON APPEAL. (C) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, THE CORPORATION COUNSEL OR OTHER LEGAL REPRESEN- TATIVE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE OR THE DISTRICT ATTORNEY OF ANY COUNTY, MAY INSTITUTE AN ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDICTION THAT MAY BE APPROPRIATE OR NECES- SARY TO DETERMINE WHETHER ANY OWNER OF RECORD OR OWNER OF A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSORING THE ELIGIBLE CONSTRUCTION HAS HARASSED OR UNLAWFULLY EVICTED TENANTS AS DESCRIBED IN THIS SUBPARAGRAPH. (7) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, THE LOCAL HOUSING AGENCY MAY REQUIRE BY RULES AND REGULATIONS THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST BE FILED ELECTRONICALLY. (E) ADDITIONAL REQUIREMENTS FOR AN ELIGIBLE RENTAL BUILDING OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY. ANY SUCH LOCAL LAW OR ORDINANCE SHALL, IN ADDITION TO ALL OTHER CONDITIONS OF ELIGIBILITY FOR REHABILITATION PROGRAM BENEFITS SET FORTH IN THIS SUBDI- VISION, REQUIRE THAT AN ELIGIBLE RENTAL BUILDING, OTHER THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY, ALSO COMPLY WITH ALL PROVISIONS OF THIS PARAGRAPH. NOTWITHSTANDING THE FOREGOING, AN ELIGIBLE RENTAL BUILDING THAT IS THE RECIPIENT OF SUBSTANTIAL GOVERNMENTAL ASSISTANCE SHALL NOT BE REQUIRED TO COMPLY WITH THE PROVISIONS OF SUBPARAGRAPH THREE OF THIS PARAGRAPH. (1) NOTWITHSTANDING ANY PROVISION OF RENT REGULATION TO THE CONTRARY, ANY MARKET RENTAL UNIT WITHIN SUCH ELIGIBLE RENTAL BUILDING SUBJECT TO RENT REGULATION AS OF THE FILING DATE OF THE APPLICATION FOR A CERTIF- ICATE OF ELIGIBILITY AND REASONABLE COST AND ANY AFFORDABLE RENTAL UNIT WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE SUBJECT TO RENT REGULATION UNTIL SUCH UNIT FIRST BECOMES VACANT AFTER THE EXPIRATION OF THE S. 5790--A 7 RESTRICTION PERIOD AT WHICH TIME SUCH UNIT, UNLESS IT WOULD BE SUBJECT TO RENT REGULATION FOR REASONS OTHER THAN THE PROVISIONS OF THIS SUBDI- VISION, SHALL BE DEREGULATED, PROVIDED, HOWEVER, THAT DURING THE RESTRICTION PERIOD, NO EXEMPTION OR EXCLUSION FROM ANY REQUIREMENT OF RENT REGULATION SHALL APPLY TO SUCH DWELLING UNITS. (A) NOT LESS THAN FIFTY PERCENT OF THE DWELLING UNITS IN SUCH ELIGIBLE RENTAL BUILDING SHALL BE DESIGNATED AS AFFORDABLE RENTAL UNITS. (B) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL ENSURE THAT NO AFFORDABLE RENTAL UNIT IS HELD OFF THE MARKET FOR A PERIOD THAT IS LONG- ER THAN REASONABLY NECESSARY. (C) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL WAIVE THE COLLECTION OF ANY MAJOR CAPITAL IMPROVEMENT RENT INCREASE GRANTED BY THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL PURSUANT TO RENT REGULATION THAT IS ATTRIBUTABLE TO ELIGIBLE CONSTRUCTION FOR WHICH SUCH ELIGIBLE RENTAL BUILDING RECEIVES REHABILITATION PROGRAM BENEFITS, AND SHALL FILE A DECLARATION WITH THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL PROVIDING SUCH WAIVER. (D) AN AFFORDABLE RENTAL UNIT SHALL NOT BE RENTED ON A TEMPORARY, TRANSIENT OR SHORT-TERM BASIS. EVERY LEASE AND RENEWAL THEREOF FOR AN AFFORDABLE RENTAL UNIT SHALL BE FOR A TERM OF ONE OR TWO YEARS, AT THE OPTION OF THE TENANT, AND SHALL INCLUDE A NOTICE IN AT LEAST TWELVE- POINT TYPE INFORMING SUCH TENANT OF THEIR RIGHTS PURSUANT TO THIS SUBDI- VISION, INCLUDING AN EXPLANATION OF THE RESTRICTIONS ON RENT INCREASES THAT MAY BE IMPOSED ON SUCH AFFORDABLE RENTAL UNIT. (E) THE LOCAL HOUSING AGENCY MAY ESTABLISH BY RULES AND REGULATIONS SUCH REQUIREMENTS AS THE LOCAL HOUSING AGENCY DEEMS NECESSARY OR APPRO- PRIATE FOR DESIGNATING AFFORDABLE RENTAL UNITS, INCLUDING, BUT NOT LIMITED TO, DESIGNATING THE UNIT MIX AND DISTRIBUTION REQUIREMENTS OF SUCH AFFORDABLE RENTAL UNITS IN AN ELIGIBLE BUILDING. (2) THE OWNER OF SUCH ELIGIBLE RENTAL BUILDING SHALL NOT ENGAGE IN OR CAUSE ANY HARASSMENT OF THE TENANTS OF SUCH ELIGIBLE RENTAL BUILDING OR UNLAWFULLY EVICT ANY SUCH TENANTS DURING THE RESTRICTION PERIOD. (3) NO DWELLING UNITS WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE CONVERTED TO COOPERATIVE OR CONDOMINIUM OWNERSHIP DURING THE RESTRICTION PERIOD. (4) ANY NON-COMPLIANCE OF AN ELIGIBLE RENTAL BUILDING WITH THE PROVISIONS OF THIS PARAGRAPH SHALL PERMIT THE LOCAL HOUSING AGENCY TO TAKE THE FOLLOWING ACTION: (A) EXTEND THE RESTRICTION PERIOD; (B) INCREASE THE NUMBER OF AFFORDABLE RENTAL UNITS IN SUCH ELIGIBLE RENTAL BUILDING; (C) IMPOSE A PENALTY OF NOT MORE THAN THE PRODUCT OF ONE THOUSAND DOLLARS PER INSTANCE OF NON-COMPLIANCE AND THE NUMBER OF DWELLING UNITS CONTAINED IN SUCH ELIGIBLE RENTAL BUILDING; AND (D) TERMINATE OR REVOKE ANY REHABILITATION PROGRAM BENEFITS IN ACCORD- ANCE WITH PARAGRAPH (M) OF THIS SUBDIVISION. (F) COMPLIANCE WITH APPLICABLE LAW. ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE THAT REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY ELIGIBLE BUILDING UNLESS AND UNTIL SUCH ELIGIBLE BUILD- ING COMPLIES WITH ALL APPLICABLE PROVISIONS OF LAW. (G) IMPLEMENTATION OF REHABILITATION PROGRAM BENEFITS. UPON ISSUANCE OF A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST AND PAYMENT OF OUTSTANDING FEES, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO TRANS- MIT SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE COST TO THE LOCAL AGENCY RESPONSIBLE FOR REAL PROPERTY TAX ASSESSMENT. UPON RECEIPT OF A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST, THE LOCAL AGENCY RESPON- S. 5790--A 8 SIBLE FOR REAL PROPERTY TAX ASSESSMENT SHALL CERTIFY THE AMOUNT OF TAXES TO BE ABATED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION AND PURSUANT TO SUCH CERTIFICATE OF ELIGIBILITY AND REASONABLE COST PROVIDED BY THE LOCAL HOUSING AGENCY. (H) OUTSTANDING TAXES AND CHARGES. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR AN ELIGIBLE BUILDING IN EITHER OF THE FOLLOWING CASES: (1) THERE ARE OUTSTANDING REAL ESTATE TAXES OR WATER AND SEWER CHARGES OR PAYMENTS IN LIEU OF TAXES THAT ARE DUE AND OWING AS OF THE LAST DAY OF THE TAX PERIOD PRECEDING THE DATE OF THE RECEIPT OF THE CERTIFICATE OF ELIGIBILITY AND REASONABLE COST BY THE LOCAL AGENCY RESPONSIBLE FOR REAL PROPERTY TAX ASSESSMENT; OR (2) REAL ESTATE TAXES OR WATER AND SEWER CHARGES DUE AT ANY TIME DURING THE AUTHORIZED TERM OF SUCH BENEFITS REMAIN UNPAID FOR ONE YEAR AFTER THE SAME ARE DUE AND PAYABLE. (I) ADDITIONAL LIMITATIONS ON ELIGIBILITY. ANY SUCH LOCAL LAW OR ORDI- NANCE SHALL ALSO PROVIDE THAT: (1) REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY ELIGIBLE BUILDING RECEIVING TAX EXEMPTION OR ABATEMENT CONCURRENTLY FOR REHABILITATION OR NEW CONSTRUCTION UNDER ANY OTHER PROVISION OF STATE OR LOCAL LAW OR ORDINANCE WITH THE EXCEPTION OF ANY ELIGIBLE CONSTRUCTION TO AN ELIGIBLE BUILDING RECEIVING A TAX EXEMPTION OR ABATEMENT UNDER THE PROVISIONS OF THE PRIVATE HOUSING FINANCE LAW; (2) REHABILITATION PROGRAM BENEFITS SHALL NOT BE ALLOWED FOR ANY ITEM OF ELIGIBLE CONSTRUCTION IN AN ELIGIBLE BUILDING IF SUCH ELIGIBLE BUILD- ING IS RECEIVING TAX EXEMPTION OR ABATEMENT FOR THE SAME OR A SIMILAR ITEM OF ELIGIBLE CONSTRUCTION AS OF THE DECEMBER THIRTY-FIRST PRECEDING THE DATE OF APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST FOR SUCH REHABILITATION PROGRAM BENEFITS; (3) WHERE THE ELIGIBLE CONSTRUCTION INCLUDES OR BENEFITS A PORTION OF AN ELIGIBLE BUILDING THAT IS NOT OCCUPIED FOR DWELLING PURPOSES, THE ASSESSED VALUATION OF SUCH ELIGIBLE BUILDING AND THE COST OF THE ELIGI- BLE CONSTRUCTION SHALL BE APPORTIONED SO THAT REHABILITATION PROGRAM BENEFITS SHALL NOT BE PROVIDED FOR ELIGIBLE CONSTRUCTION MADE FOR OTHER THAN DWELLING PURPOSES; AND (4) REHABILITATION PROGRAM BENEFITS SHALL NOT BE APPLIED TO ABATE OR REDUCE THE TAXES UPON THE LAND PORTION OF REAL PROPERTY, WHICH SHALL CONTINUE TO BE TAXED BASED UPON THE ASSESSED VALUATION OF THE LAND AND THE APPLICABLE TAX RATE AT THE TIME SUCH TAXES ARE LEVIED. (J) RE-INSPECTION PENALTY. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT IF THE LOCAL HOUSING AGENCY CANNOT VERIFY THE ELIGIBLE CONSTRUCTION CLAIMED BY AN APPLICANT UPON THE FIRST INSPECTION BY THE LOCAL HOUSING AGENCY OF THE ELIGIBLE BUILDING, SUCH APPLICANT SHALL BE REQUIRED TO PAY TEN TIMES THE ACTUAL COST OF ANY ADDITIONAL INSPECTION NEEDED TO VERIFY SUCH ELIGIBLE CONSTRUCTION. (K) STRICT LIABILITY FOR INACCURATE APPLICATIONS. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT IF THE LOCAL HOUSING AGENCY DETER- MINES THAT AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY AND REASON- ABLE COST CONTAINS A MATERIAL MISSTATEMENT OF FACT, THE LOCAL HOUSING AGENCY MAY REJECT SUCH APPLICATION AND BAR THE SUBMISSION OF ANY OTHER APPLICATION PURSUANT TO THIS SUBDIVISION WITH RESPECT TO SUCH ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED THREE YEARS. AN APPLICANT SHALL NOT BE RELIEVED FROM LIABILITY UNDER THIS PARAGRAPH BECAUSE IT SUBMITTED ITS APPLICATION UNDER A MISTAKEN BELIEF OF FACT. FURTHERMORE, ANY PERSON OR ENTITY THAT FILES MORE THAN SIX APPLICATIONS CONTAINING SUCH A MATERIAL MISSTATEMENT OF FACT WITHIN ANY TWELVE-MONTH PERIOD SHALL BE BARRED FROM S. 5790--A 9 SUBMITTING ANY NEW APPLICATION FOR REHABILITATION PROGRAM BENEFITS ON BEHALF OF ANY ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED FIVE YEARS. (L) INVESTIGATORY AUTHORITY. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO ALLOW THE LOCAL HOUSING AGENCY TO REQUIRE SUCH CERTIFICATIONS AND CONSENTS NECESSARY TO ACCESS RECORDS, INCLUDING OTHER TAX RECORDS, AS MAY BE DEEMED APPROPRIATE TO ENFORCE THE ELIGIBILITY REQUIREMENTS OF THIS SUBDIVISION. ANY SUCH LOCAL LAW OR ORDINANCE SHALL FURTHER PROVIDE THAT, FOR PURPOSES OF DETERMINING AND CERTIFYING ELIGIBILITY FOR REHA- BILITATION PROGRAM BENEFITS AND THE REASONABLE COST OF ANY ELIGIBLE CONSTRUCTION, THE LOCAL HOUSING AGENCY SHALL BE AUTHORIZED TO: (1) ADMINISTER OATHS TO AND TAKE THE TESTIMONY OF ANY PERSON, INCLUD- ING, BUT NOT LIMITED TO, THE OWNER OF SUCH ELIGIBLE BUILDING; (2) ISSUE SUBPOENAS REQUIRING THE ATTENDANCE OF SUCH PERSONS AND THE PRODUCTION OF ANY BILLS, BOOKS, PAPERS OR OTHER DOCUMENTS AS IT MAY DEEM NECESSARY; (3) MAKE PRELIMINARY ESTIMATES OF THE MAXIMUM REASONABLE COST OF SUCH ELIGIBLE CONSTRUCTION; (4) ESTABLISH MAXIMUM ALLOWABLE COSTS OF SPECIFIED UNITS, FIXTURES OR WORK IN SUCH ELIGIBLE CONSTRUCTION; (5) REQUIRE THE SUBMISSION OF PLANS AND SPECIFICATIONS OF SUCH ELIGI- BLE CONSTRUCTION BEFORE THE COMMENCEMENT THEREOF AND REQUIRE PHYSICAL ACCESS TO INSPECT THE ELIGIBLE BUILDING; AND (6) ON AN ANNUAL BASIS, REQUIRE THE SUBMISSION OF LEASES FOR ANY DWELLING UNIT IN A BUILDING GRANTED A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST. (M) TERMINATION OR REVOCATION. ANY SUCH LOCAL LAW OR ORDINANCE SHALL PROVIDE THAT FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION, ANY SUCH LOCAL LAW OR ORDINANCE, ANY RULES AND REGULATIONS PROMULGATED THEREUNDER, OR ANY MUTUAL COMPANY REGULATORY AGREEMENT OR MUTUAL REDE- VELOPMENT COMPANY REGULATORY AGREEMENT ENTERED INTO THEREUNDER, MAY RESULT IN REVOCATION OF ANY REHABILITATION PROGRAM BENEFITS RETROACTIVE TO THE COMMENCEMENT THEREOF. SUCH TERMINATION OR REVOCATION SHALL NOT EXEMPT SUCH ELIGIBLE BUILDING FROM CONTINUED COMPLIANCE WITH THE REQUIREMENTS OF THIS SUBDIVISION, SUCH LOCAL LAW OR ORDINANCE, SUCH RULES AND REGULATIONS, AND SUCH MUTUAL COMPANY REGULATORY AGREEMENT OR MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREEMENT. (N) CRIMINAL LIABILITY FOR UNAUTHORIZED USES. ANY SUCH LOCAL LAW OR ORDINANCE SHALL ALSO PROVIDE THAT IN THE EVENT THAT ANY RECIPIENT OF REHABILITATION PROGRAM BENEFITS USES ANY DWELLING UNIT IN SUCH ELIGIBLE BUILDING IN VIOLATION OF THE REQUIREMENTS OF SUCH LOCAL LAW OR ORDINANCE AS ADOPTED PURSUANT TO THIS SUBDIVISION AND ANY RULES AND REGULATIONS PROMULGATED PURSUANT THERETO, SUCH RECIPIENT SHALL BE GUILTY OF AN UNCLASSIFIED MISDEMEANOR PUNISHABLE BY A FINE IN AN AMOUNT EQUIVALENT TO DOUBLE THE VALUE OF THE GAIN OF SUCH RECIPIENT FROM SUCH UNLAWFUL USE OR IMPRISONMENT FOR NOT MORE THAN NINETY DAYS, OR BOTH. (O) PRIVATE RIGHT OF ACTION. ANY PROSPECTIVE, PRESENT, OR FORMER TENANT OF AN ELIGIBLE RENTAL BUILDING MAY SUE TO ENFORCE THE REQUIRE- MENTS AND PROHIBITIONS OF THIS SUBDIVISION, ANY SUCH LOCAL LAW OR ORDI- NANCE, OR ANY RULES AND REGULATIONS PROMULGATED THEREUNDER, IN THE SUPREME COURT OF NEW YORK. ANY SUCH INDIVIDUAL HARMED BY REASON OF A VIOLATION OF SUCH REQUIREMENTS AND PROHIBITIONS MAY SUE THEREFOR IN THE SUPREME COURT OF NEW YORK ON BEHALF OF HIMSELF OR HERSELF, AND SHALL RECOVER THREEFOLD THE DAMAGES SUSTAINED AND THE COST OF THE SUIT, INCLUDING A REASONABLE ATTORNEY'S FEE. THE LOCAL HOUSING AGENCY MAY USE ANY COURT DECISION UNDER THIS PARAGRAPH THAT IS ADVERSE TO THE OWNER OF AN ELIGIBLE BUILDING AS THE BASIS FOR FURTHER ENFORCEMENT ACTION. S. 5790--A 10 NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN ACTION BY A TENANT OF AN ELIGIBLE RENTAL BUILDING UNDER THIS PARAGRAPH MUST BE COMMENCED WITHIN SIX YEARS FROM THE DATE OF THE LATEST VIOLATION. (P) APPOINTMENT OF RECEIVER. IN ADDITION TO THE REMEDIES FOR NON-COM- PLIANCE PROVIDED FOR IN SUBPARAGRAPH FOUR OF PARAGRAPH (E) OF THIS SUBDIVISION, ANY SUCH LOCAL LAW OR ORDINANCE MAY ALSO PROVIDE THAT THE LOCAL HOUSING AGENCY MAY MAKE APPLICATION FOR THE APPOINTMENT OF A RECEIVER IN ACCORDANCE WITH THE PROCEDURES CONTAINED IN SUCH LOCAL LAW OR ORDINANCE. ANY RECEIVER APPOINTED PURSUANT TO THIS PARAGRAPH SHALL BE AUTHORIZED, IN ADDITION TO ANY OTHER POWERS CONFERRED BY LAW, TO EFFECT COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION, SUCH LOCAL LAW OR ORDINANCE, AND RULES AND REGULATIONS OF THE LOCAL HOUSING AGENCY. ANY EXPENDITURES INCURRED BY THE RECEIVER TO EFFECT SUCH COMPLIANCE SHALL CONSTITUTE A DEBT OF THE OWNER AND A LIEN UPON THE PROPERTY, AND UPON THE RENTS AND INCOME THEREOF, IN ACCORDANCE WITH THE PROCEDURES CONTAINED IN SUCH LOCAL LAW OR ORDINANCE. THE LOCAL HOUSING AGENCY IN ITS DISCRETION MAY PROVIDE FUNDS TO BE EXPENDED BY THE RECEIVER, AND SUCH FUNDS SHALL CONSTITUTE A DEBT RECOVERABLE FROM THE OWNER IN ACCORD- ANCE WITH APPLICABLE LOCAL LAWS OR ORDINANCES. (Q) AUTHORITY OF CITY TO LIMIT LOCAL LAW. WHERE A CITY ENACTS OR AMENDS A LOCAL LAW OR ORDINANCE UNDER THIS SUBDIVISION, SUCH LOCAL LAW OR ORDINANCE MAY RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY, SCOPE OR AMOUNT OF REHABILITATION PROGRAM BENEFITS UNDER THE LOCAL LAW OR ORDI- NANCE IN ANY MANNER, PROVIDED THAT THE LOCAL LAW OR ORDINANCE MAY NOT GRANT REHABILITATION PROGRAM BENEFITS BEYOND THOSE PROVIDED IN THIS SUBDIVISION. § 2. This act shall take effect immediately.
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