Assembly Bill A10549

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10549
 
                           I N  A S S E M B L Y
 
                              March 13, 2026
                                ___________
 
 Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred to the
   Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to authorizing  a
   tax  abatement  for alterations and improvements to multiple dwellings
   for purposes of preserving habitability in affordable 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 22 to read as follows:
   22. (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, AS OF THE FILING OF AN APPLICATION FOR A CERTIF-
 ICATE OF ELIGIBILITY AND REASONABLE COST, HAS A RENT  AT  OR  BELOW  THE
 AFFORDABLE RENT.
   (3) "AREA MEDIAN INCOME" SHALL MEAN THE INCOME LIMITS AS DEFINED ANNU-
 ALLY  BY  THE  UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 FOR THE NEW YORK CITY AREA.
   (4) "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.
   (5) "CERTIFIED REASONABLE COST SCHEDULE" SHALL MEAN A TABLE  PROVIDING
 MAXIMUM DOLLAR LIMITS FOR SPECIFIED ALTERATIONS AND IMPROVEMENTS, ESTAB-
 LISHED, AND UPDATED AT LEAST EVERY TWO YEARS, BY THE LOCAL HOUSING AGEN-
 CY.
   (6)  "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.
              

                                                            LBD13158-11-6
 A. 10549                            2
 
   (7)  "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.
   (8)   "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.
   (9) "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.
   (10)  "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.
   (11) "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 ON OR  AFTER  JUNE  THIRTIETH,  TWO
 THOUSAND TWENTY-SIX AND PRIOR TO JUNE THIRTIETH, TWO THOUSAND THIRTY-SIX
 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.
   (12) "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.
   (13)  "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.
   (14) "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;
 A. 10549                            3
 
   (II) NOT LESS THAN NINETY PERCENT OF THE DWELLING UNITS IN SUCH BUILD-
 ING ARE SUBJECT TO RENT REGULATION;
   (III)  SUCH BUILDING IS OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING
 COMPANY; OR
   (IV) SUCH  BUILDING  IS  THE  RECIPIENT  OF  SUBSTANTIAL  GOVERNMENTAL
 ASSISTANCE.
   (15) "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.
   (16)  "HOMEOWNERSHIP AVERAGE ASSESSED VALUATION LIMITATION" SHALL MEAN
 AN AVERAGE ASSESSED  VALUATION  OF  SEVENTY-FIVE  THOUSAND  DOLLARS  PER
 DWELLING UNIT, ADJUSTED ANNUALLY TO REFLECT ANY INCREASE IN THE CONSUMER
 PRICE  INDEX  FOR  ALL URBAN CONSUMERS FOR ALL ITEMS AS PUBLISHED BY THE
 UNITED STATES BUREAU OF LABOR STATISTICS FOR THE  REGION  IN  WHICH  THE
 ELIGIBLE BUILDING IS LOCATED, AS ESTABLISHED FOR THE MOST RECENT PRECED-
 ING CALENDAR YEAR.
   (17)  "LIMITED-PROFIT  HOUSING COMPANY" SHALL HAVE THE SAME MEANING AS
 "COMPANY" AS DEFINED IN SECTION TWELVE OF THE  PRIVATE  HOUSING  FINANCE
 LAW.
   (18)  "MARKET  RENTAL  UNIT" SHALL MEAN A DWELLING UNIT IN AN ELIGIBLE
 RENTAL BUILDING OTHER THAN AN AFFORDABLE RENTAL UNIT.
   (19) "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.
   (20) "MINIMUM SCOPE OF WORK THRESHOLD" SHALL MEAN A  TOTAL  AMOUNT  OF
 CERTIFIED  REASONABLE  COST ESTABLISHED BY RULES, REGULATIONS, AND GUID-
 ANCE DOCUMENTS OF THE LOCAL HOUSING AGENCY, PROVIDED  THAT  SUCH  AMOUNT
 SHALL  BE NO LESS THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH DWELL-
 ING UNIT IN EXISTENCE ON THE COMPLETION DATE.
   (21) "MULTIPLE DWELLING" SHALL  HAVE  THE  MEANING  AS  SUCH  TERM  IS
 DEFINED IN SECTION FOUR OF THE MULTIPLE DWELLING LAW.
   (22)  "MUTUAL  COMPANY" SHALL HAVE THE MEANING AS SUCH TERM IS DEFINED
 IN SECTION TWELVE OF THE PRIVATE HOUSING FINANCE LAW.
   (23) "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.
   (24)  "MUTUAL COMPANY SUPERVISING AGENCY" SHALL HAVE THE SAME MEANING,
 WITH RESPECT TO ANY MUTUAL COMPANY, AS "SUPERVISING AGENCY"  AS  DEFINED
 IN SECTION TWO OF THE PRIVATE HOUSING FINANCE LAW.
 A. 10549                            4
 
   (25)  "MUTUAL  REDEVELOPMENT  COMPANY"  SHALL HAVE THE SAME MEANING AS
 "MUTUAL COMPANY" WHEN APPLIED TO A REDEVELOPMENT COMPANY AS  DEFINED  IN
 SECTION ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE LAW.
   (26)  "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 GRANTED TO SUCH  MUTUAL  REDE-
 VELOPMENT  COMPANY  PURSUANT  TO  SECTION ONE HUNDRED TWENTY-FIVE OF THE
 PRIVATE HOUSING FINANCE LAW.
   (27) "REDEVELOPMENT COMPANY" SHALL HAVE THE SAME MEANING AS SUCH  TERM
 IS  DEFINED  IN  SECTION  ONE HUNDRED TWO OF THE PRIVATE HOUSING FINANCE
 LAW.
   (28) "REDEVELOPMENT COMPANY SUPERVISING AGENCY" SHALL  HAVE  THE  SAME
 MEANING,  WITH  RESPECT  TO  ANY  REDEVELOPMENT COMPANY, AS "SUPERVISING
 AGENCY" AS DEFINED IN SECTION ONE HUNDRED TWO  OF  THE  PRIVATE  HOUSING
 FINANCE LAW.
   (29)  "REHABILITATION  PROGRAM  BENEFITS" SHALL MEAN ABATEMENT OF REAL
 PROPERTY TAXES PURSUANT TO THIS SUBDIVISION.
   (30) "RENT REGULATION" SHALL MEAN, COLLECTIVELY, THE EMERGENCY HOUSING
 RENT CONTROL LAW, ANY LOCAL LAW ENACTED PURSUANT TO THE LOCAL  EMERGENCY
 HOUSING RENT CONTROL ACT, THE RENT STABILIZATION LAW OF NINETEEN HUNDRED
 SIXTY-NINE,  THE  RENT  STABILIZATION  CODE,  AND  THE  EMERGENCY TENANT
 PROTECTION ACT OF NINETEEN SEVENTY-FOUR, ALL AS  IN  EFFECT  AS  OF  THE
 EFFECTIVE  DATE  OF  THIS SUBDIVISION, OR AS ANY SUCH STATUTE IS AMENDED
 THEREAFTER, TOGETHER WITH ANY SUCCESSOR STATUTES OR REGULATIONS ADDRESS-
 ING SUBSTANTIALLY THE SAME SUBJECT MATTER.
   (31) "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  BENEFITS,  OR
 SUCH  ADDITIONAL PERIOD OF TIME AS MAY BE IMPOSED PURSUANT TO CLAUSE (A)
 OF SUBPARAGRAPH FIVE OF PARAGRAPH (E) OF THIS SUBDIVISION.
   (32) "SUBSTANTIAL GOVERNMENTAL ASSISTANCE" SHALL MEAN  GRANTS,  LOANS,
 OR  SUBSIDIES  FROM  ANY  FEDERAL,  STATE, OR LOCAL GOVERNMENT 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.
   (33) "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 CONTRA-
 RY, IN A CITY WITH A POPULATION OF ONE MILLION  PERSONS  OR  MORE,  REAL
 PROPERTY  TAXES  ON  AN ELIGIBLE BUILDING IN WHICH ELIGIBLE CONSTRUCTION
 HAS BEEN COMPLETED MAY BE ABATED BY AN AGGREGATE AMOUNT THAT  SHALL  NOT
 EXCEED  ONE  HUNDRED  PERCENT  OF THE TOTAL CERTIFIED REASONABLE COST OF
 SUCH CONSTRUCTION PLUS AN AMOUNT  EQUIVALENT  TO  THE  FILING  FEE  PAID
 A. 10549                            5
 
 PURSUANT  TO SUBPARAGRAPH THREE OF PARAGRAPH (D) OF THIS SUBDIVISION, AS
 DETERMINED UNDER RULES, REGULATIONS, AND GUIDANCE DOCUMENTS OF THE LOCAL
 HOUSING AGENCY, PROVIDED THAT:
   (1) SUCH ABATEMENT SHALL NOT BE EFFECTIVE FOR MORE THAN TWENTY YEARS;
   (2)  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;
   (3)  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
   (4) 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) GUIDANCE AND RULEMAKING. EACH AGENCY OR DEPARTMENT TO WHICH  FUNC-
 TIONS  ARE  ASSIGNED BY THIS SUBDIVISION MAY ADOPT AND PROMULGATE RULES,
 REGULATIONS, AND GUIDANCE DOCUMENTS FOR THE EFFECTUATION OF THE  PURPOSE
 OF THIS SUBDIVISION.
   (D)  APPLICATION.  (1) AN APPLICATION FOR A CERTIFICATE OF ELIGIBILITY
 AND REASONABLE COST PURSUANT TO THIS SUBDIVISION SHALL BE MADE AFTER THE
 COMPLETION DATE AND ON OR BEFORE THE LATER OF (A) FOUR MONTHS  FROM  THE
 EFFECTIVE  DATE  OF  THIS  SUBDIVISION;  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 SEVENTY-FIVE DOLLARS FOR EACH DWELLING  UNIT  IN
 THE  ELIGIBLE  BUILDING  THAT IS THE SUBJECT OF SUCH APPLICATION, BUT NO
 MORE THAN TWENTY THOUSAND DOLLARS FOR EACH APPLICATION,  WITH  SUCH  FEE
 FOR  EACH DWELLING UNIT AND MAXIMUM FEE ADJUSTED ANNUALLY TO REFLECT ANY
 INCREASE IN THE CONSUMER PRICE INDEX FOR ALL  URBAN  CONSUMERS  FOR  ALL
 ITEMS  AS  PUBLISHED BY THE UNITED STATES BUREAU OF LABOR STATISTICS FOR
 THE REGION IN WHICH THE ELIGIBLE BUILDING IS LOCATED, AS ESTABLISHED FOR
 THE MOST RECENT PRECEDING CALENDAR YEAR. FOR AN APPLICATION FOR REHABIL-
 ITATION PROGRAM BENEFITS THAT HAS BEEN APPROVED, AN AMOUNT EQUIVALENT TO
 THE FILING FEE PAID PURSUANT TO THIS SUBPARAGRAPH SHALL BE  INCLUDED  IN
 THE AGGREGATE AMOUNT ABATED UNDER THIS SUBDIVISION.
   (4)  ANY  APPLICATION THAT IS FILED PURSUANT TO THIS PARAGRAPH THAT IS
 MISSING ANY OF THE INFORMATION AND  DOCUMENTATION  REQUIRED  AT  INITIAL
 FILING  BY  ANY  RULES, REGULATIONS, AND GUIDANCE DOCUMENTS OF THE LOCAL
 HOUSING AGENCY SHALL BE DENIED, PROVIDED THAT A NEW APPLICATION FOR  THE
 SAME  ELIGIBLE  CONSTRUCTION,  TOGETHER WITH A NEW NON-REFUNDABLE FILING
 FEE, MAY BE FILED WITHIN FIFTEEN DAYS OF THE DATE OF  ISSUANCE  OF  SUCH
 DENIAL.  IF  SUCH  SECOND  APPLICATION IS ALSO MISSING ANY SUCH REQUIRED
 INFORMATION AND DOCUMENTATION, IT SHALL BE DENIED AND NO FURTHER  APPLI-
 CATIONS FOR THE SAME ELIGIBLE CONSTRUCTION SHALL BE PERMITTED.
 A. 10549                            6
 
   (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 ABATEMENT PURSUANT
 TO PARAGRAPH (B) OF THIS SUBDIVISION WHERE:
   (I) ANY AFFIDAVIT REQUIRED UNDER THIS SUBPARAGRAPH HAS NOT BEEN FILED;
 OR
   (II) ANY SUCH AFFIDAVIT CONTAINS A WILLFUL MISREPRESENTATION OR  OMIS-
 SION OF ANY MATERIAL FACT; OR
   (III)  ANY  OWNER  OF RECORD OR OWNER OF A SUBSTANTIAL INTEREST IN THE
 ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING  OR  SPONSORING
 THE  ELIGIBLE  CONSTRUCTION HAS BEEN FOUND, BY JUDGMENT OR DETERMINATION
 OF A COURT OR AGENCY, INCLUDING A NON-GOVERNMENTAL AGENCY HAVING  APPRO-
 PRIATE  LEGAL  JURISDICTION  UNDER THE PENAL LAW, ANY STATE OR LOCAL LAW
 REGULATING RENTS, OR ANY STATE OR LOCAL LAW RELATING  TO  HARASSMENT  OF
 TENANTS  OR  UNLAWFUL  EVICTION, TO HAVE, WITHIN THE FIVE YEARS PRIOR TO
 THE COMPLETION DATE, HARASSED OR UNLAWFULLY EVICTED TENANTS,  UNTIL  AND
 UNLESS THE FINDING IS REVERSED ON APPEAL.
   (C)  NOTWITHSTANDING  THE PROVISIONS OF ANY GENERAL, SPECIAL, OR LOCAL
 LAW TO THE CONTRARY, THE CORPORATION COUNSEL OR  OTHER  LEGAL  REPRESEN-
 TATIVE  OF  A  CITY  HAVING  A  POPULATION OF ONE MILLION OR MORE OR THE
 DISTRICT ATTORNEY OF ANY COUNTY LOCATED IN A CITY WITH A  POPULATION  OF
 ONE  MILLION OR MORE, MAY INSTITUTE AN ACTION OR PROCEEDING IN ANY COURT
 OF COMPETENT JURISDICTION THAT MAY BE APPROPRIATE OR NECESSARY TO DETER-
 MINE WHETHER ANY OWNER OF RECORD OR OWNER OF A SUBSTANTIAL  INTEREST  IN
 THE ELIGIBLE BUILDING OR ENTITY OWNING THE ELIGIBLE BUILDING OR SPONSOR-
 ING 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,
 REGULATIONS,  AND  GUIDANCE  DOCUMENTS THAT AN APPLICATION FOR A CERTIF-
 ICATE OF ELIGIBILITY AND REASONABLE COST BE FILED ELECTRONICALLY.
   (8) THE LOCAL HOUSING AGENCY MAY REQUIRE AN APPLICANT  TO  DEMONSTRATE
 COMPLIANCE WITH THE HOUSING MAINTENANCE CODE. IF HAZARDOUS OR IMMEDIATE-
 A. 10549                            7
 
 LY  HAZARDOUS VIOLATIONS EXIST, THE LOCAL HOUSING AGENCY MAY REQUIRE THE
 APPLICANT TO REMEDIATE SUCH VIOLATIONS AND MAY IMPOSE A  PENALTY  IN  AN
 AMOUNT  SET  FORTH  IN RULES, REGULATIONS, AND GUIDANCE DOCUMENTS IF THE
 APPLICANT FAILS TO CLEAR THE VIOLATION.
   (E) ADDITIONAL REQUIREMENTS FOR AN ELIGIBLE RENTAL BUILDING OTHER THAN
 ONE  OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING COMPANY. IN ADDITION
 TO ALL OTHER CONDITIONS OF ELIGIBILITY FOR REHABILITATION PROGRAM  BENE-
 FITS  SET  FORTH IN THIS SUBDIVISION, AN ELIGIBLE RENTAL BUILDING, OTHER
 THAN ONE OWNED AND OPERATED BY A LIMITED-PROFIT HOUSING  COMPANY,  SHALL
 ALSO  COMPLY  WITH ALL PROVISIONS OF THIS PARAGRAPH. NOTWITHSTANDING THE
 FOREGOING, AN ELIGIBLE RENTAL BUILDING THAT IS THE RECIPIENT OF SUBSTAN-
 TIAL GOVERNMENTAL ASSISTANCE SHALL NOT BE REQUIRED TO  COMPLY  WITH  THE
 PROVISIONS OF SUBPARAGRAPH TWO 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) 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.
   (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. THE  LOCAL  HOUSING  AGENCY
 SHALL NOT REQUIRE AN OWNER TO FILE SUCH WAIVER UNTIL THE APPLICATION FOR
 REHABILITATION PROGRAM BENEFITS HAS BEEN APPROVED.
   (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, REGULATIONS,  AND
 GUIDANCE  DOCUMENTS  SUCH REQUIREMENTS AS THE LOCAL HOUSING AGENCY DEEMS
 NECESSARY  OR  APPROPRIATE  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.
   (3)  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.
 A. 10549                            8
 
   (4)  NO  DWELLING  UNITS WITHIN SUCH ELIGIBLE RENTAL BUILDING SHALL BE
 CONVERTED TO COOPERATIVE OR CONDOMINIUM OWNERSHIP DURING THE RESTRICTION
 PERIOD.
   (5)  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 (P) OF THIS SUBDIVISION.
   (F) COMPLIANCE WITH APPLICABLE LAW.  REHABILITATION  PROGRAM  BENEFITS
 SHALL  NOT  BE  ALLOWED  FOR ANY ELIGIBLE BUILDING UNLESS AND UNTIL SUCH
 ELIGIBLE BUILDING COMPLIES WITH ALL APPLICABLE PROVISIONS OF LAW.  REHA-
 BILITATION  PROGRAM  BENEFITS  SHALL NOT BE ALLOWED IF THE LOCAL HOUSING
 AGENCY DETERMINES THAT ELIGIBLE CONSTRUCTION  WAS  NOT  CARRIED  OUT  IN
 CONFORMITY WITH ALL APPLICABLE PROVISIONS OF LAW.
   (G) TENANT NOTIFICATION. NOTWITHSTANDING ANY PROVISION OF THIS SECTION
 TO THE CONTRARY, NO REHABILITATION PROGRAM BENEFITS SHALL BE GRANTED FOR
 ANY  ELIGIBLE  CONSTRUCTION  WITH  A  COMMENCEMENT  DATE ON OR AFTER THE
 EFFECTIVE DATE OF THIS SUBDIVISION  UNLESS  THE  APPLICANT  PROVIDES  TO
 TENANTS,  IF  ANY,  OF  SUCH ELIGIBLE BUILDING NOT MORE THAN ONE HUNDRED
 EIGHTY DAYS NOR LESS THAN THIRTY DAYS PRIOR TO  THE  COMMENCEMENT  DATE,
 NOTICE OF THE FOLLOWING INFORMATION:
   (1) THE PROPOSED WORK;
   (2)  THE  IDENTITY  AND CONTACT INFORMATION OF THE ELIGIBLE BUILDING'S
 REPRESENTATIVE; AND
   (3) THE TENANTS' RIGHTS UNDER APPLICABLE  LAW  WITH  RESPECT  TO  SUCH
 WORK;  PROVIDED  THAT,  IN  THE CASE OF A LOAN PROGRAM SUPERVISED BY THE
 LOCAL HOUSING AGENCY, SUCH AGENCY MAY PROVIDE THE REQUIRED NOTICE TO THE
 TENANTS.
   (H) NOTICE OF INTENT. AN APPLICANT FOR REHABILITATION PROGRAM BENEFITS
 FOR ANY ELIGIBLE CONSTRUCTION WITH A COMMENCEMENT DATE ON OR  AFTER  THE
 EFFECTIVE  DATE  OF  THIS  SUBDIVISION SHALL FILE WITH THE LOCAL HOUSING
 AGENCY A FORM SUPPLIED BY SUCH AGENCY WHICH:
   (1) STATES AN INTENTION TO FILE FOR REHABILITATION PROGRAM BENEFITS;
   (2) DESCRIBES THE WORK FOR WHICH REHABILITATION PROGRAM BENEFITS  WILL
 BE CLAIMED;
   (3)  ESTIMATES  THE COST OF SUCH WORK WHICH WILL BE ELIGIBLE FOR REHA-
 BILITATION PROGRAM BENEFITS; AND
   (4) PROVIDES PROOF OF THE NOTICE REQUIRED UNDER PARAGRAPH (G) OF  THIS
 SUBDIVISION. SUCH FORM SHALL BE FILED PRIOR TO THE COMMENCEMENT DATE. IF
 THE SCOPE OF SUCH WORK OR THE ESTIMATED COST THEREOF CHANGES MATERIALLY,
 SUCH  APPLICANT  SHALL FILE A REVISED NOTICE OF INTENT. AN APPLICANT WHO
 FAILS TO COMPLY WITH THE  REQUIREMENTS  OF  THIS  SUBDIVISION  SHALL  BE
 SUBJECT TO A PENALTY NOT TO EXCEED ONE HUNDRED PERCENT OF THE FILING FEE
 OTHERWISE  PAYABLE  PURSUANT  TO  SUBPARAGRAPH THREE OF PARAGRAPH (D) OF
 THIS SUBDIVISION.
   (I) 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
 A. 10549                            9
 
 CERTIFICATE OF ELIGIBILITY AND REASONABLE COST, THE LOCAL AGENCY RESPON-
 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.
   (J) OUTSTANDING TAXES AND  CHARGES.  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.
   (K) ADDITIONAL LIMITATIONS ON ELIGIBILITY. (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 ORDI-
 NANCE, INCLUDING ANY OTHER SUBDIVISION OF THIS SECTION, WITH THE  EXCEP-
 TION  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  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.
   (L) RE-INSPECTION PENALTY. 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.
   (M) STRICT LIABILITY FOR INACCURATE APPLICATIONS. IF THE LOCAL HOUSING
 AGENCY DETERMINES THAT AN APPLICATION FOR A CERTIFICATE  OF  ELIGIBILITY
 AND REASONABLE COST CONTAINS A MATERIAL MISSTATEMENT OF FACT OR OMISSION
 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 OR OMISSION
 OF  FACT  WITHIN ANY TWELVE-MONTH PERIOD SHALL BE BARRED FROM SUBMITTING
 A. 10549                           10
 
 ANY NEW APPLICATION FOR REHABILITATION PROGRAM BENEFITS ON BEHALF OF ANY
 ELIGIBLE BUILDING FOR A PERIOD NOT TO EXCEED FIVE YEARS.
   (N)  FALSE  STATEMENTS.  ANY  PERSON WHO SHALL KNOWINGLY AND WILLFULLY
 MAKE ANY FALSE STATEMENT OR OMISSION AS TO ANY MATERIAL  MATTER  IN  ANY
 APPLICATION  FOR  A CERTIFICATE OF ELIGIBILITY AND REASONABLE COST SHALL
 BE GUILTY OF AN OFFENSE PUNISHABLE BY A  FINE  OF  NOT  MORE  THAN  FIVE
 HUNDRED DOLLARS, OR IMPRISONMENT FOR NOT MORE THAN NINETY DAYS, OR BOTH.
   (O) INVESTIGATORY AUTHORITY. THE LOCAL HOUSING AGENCY MAY 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. FOR PURPOSES OF DETERMINING AND CERTI-
 FYING ELIGIBILITY FOR REHABILITATION 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.
   (P) TERMINATION OR REVOCATION. FAILURE TO COMPLY WITH  THE  PROVISIONS
 OF  THIS  SUBDIVISION,  ANY  RULES,  REGULATIONS, AND GUIDANCE DOCUMENTS
 PROMULGATED THEREUNDER, OR ANY MUTUAL COMPANY  REGULATORY  AGREEMENT  OR
 MUTUAL  REDEVELOPMENT  COMPANY  REGULATORY AGREEMENT ENTERED INTO THERE-
 UNDER, MAY RESULT IN TERMINATION OR  REVOCATION  OF  ANY  REHABILITATION
 PROGRAM  BENEFITS  RETROACTIVE  TO THE COMMENCEMENT THEREOF. SUCH TERMI-
 NATION OR REVOCATION  SHALL  NOT  EXEMPT  SUCH  ELIGIBLE  BUILDING  FROM
 CONTINUED  COMPLIANCE  WITH  THE  REQUIREMENTS OF THIS SUBDIVISION, SUCH
 RULES, REGULATIONS, AND GUIDANCE  DOCUMENTS,  AND  SUCH  MUTUAL  COMPANY
 REGULATORY  AGREEMENT  OR MUTUAL REDEVELOPMENT COMPANY REGULATORY AGREE-
 MENT.
   (Q) CRIMINAL LIABILITY FOR UNAUTHORIZED USES. IN THE  EVENT  THAT  ANY
 RECIPIENT  OF  REHABILITATION PROGRAM BENEFITS USES ANY DWELLING UNIT IN
 SUCH ELIGIBLE BUILDING IN VIOLATION OF THE REQUIREMENTS OF ANY RULES AND
 REGULATIONS PROMULGATED PURSUANT TO  THIS  SUBDIVISION,  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.
   (R)  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, OR ANY RULES AND REGULATIONS
 PROMULGATED THEREUNDER, IN THE SUPREME COURT OF NEW YORK. ANY SUCH INDI-
 VIDUAL HARMED BY REASON OF A VIOLATION OF SUCH REQUIREMENTS AND PROHIBI-
 TIONS  MAY  SUE  THEREFOR  IN THE SUPREME COURT OF NEW YORK ON BEHALF OF
 THEMSELVES, AND SHALL RECOVER THREEFOLD THE DAMAGES  SUSTAINED  AND  THE
 COST OF THE SUIT, INCLUDING A REASONABLE ATTORNEY'S FEE. THE LOCAL HOUS-
 A. 10549                           11
 
 ING  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.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, AN
 ACTION  BY  A TENANT OF AN ELIGIBLE RENTAL BUILDING UNDER THIS PARAGRAPH
 SHALL BE COMMENCED  WITHIN  SIX  YEARS  FROM  THE  DATE  OF  THE  LATEST
 VIOLATION.
   (S)  APPOINTMENT OF RECEIVER. IN ADDITION TO THE REMEDIES FOR NON-COM-
 PLIANCE PROVIDED FOR IN SUBPARAGRAPH  FIVE  OF  PARAGRAPH  (E)  OF  THIS
 SUBDIVISION,  THE  LOCAL  HOUSING  AGENCY  MAY  MAKE APPLICATION FOR THE
 APPOINTMENT OF A RECEIVER IN ACCORDANCE WITH THE PROCEDURES CONTAINED IN
 APPLICABLE RULES, REGULATIONS, AND GUIDANCE DOCUMENTS OF THE LOCAL HOUS-
 ING AGENCY. 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  AND  RULES,  REGU-
 LATIONS, AND GUIDANCE DOCUMENTS OF THE LOCAL HOUSING AGENCY. ANY EXPEND-
 ITURES  INCURRED BY THE RECEIVER TO EFFECT SUCH COMPLIANCE SHALL CONSTI-
 TUTE 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 RULES, REGULATIONS, AND GUIDANCE DOCUMENTS. THE LOCAL HOUSING AGEN-
 CY  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 APPLICABLE LOCAL LAWS OR ORDINANCES.
   (T)  REPORTING.  NO  LATER  THAN TWO YEARS AFTER THE EFFECTIVE DATE OF
 THIS SUBDIVISION, AND ANNUALLY THEREAFTER, THE LOCAL HOUSING AGENCY,  IN
 CONSULTATION  WITH  THE DEPARTMENT OF FINANCE, SHALL SUBMIT TO THE MAYOR
 AND THE SPEAKER OF THE COUNCIL AND POST ON ITS WEBSITE A REPORT  ON  THE
 ACTIONS BY THE LOCAL HOUSING AGENCY IN THE PRECEDING FISCAL YEAR RELATED
 TO  REHABILITATION  PROGRAM BENEFITS. SUCH REPORT SHALL INCLUDE, BUT NOT
 BE LIMITED TO:
   (1) THE TOTAL AMOUNT OF THE REHABILITATION PROGRAM  BENEFITS  APPROVED
 FOR  EACH  ELIGIBLE  BUILDING,  THE NUMBER OF ELIGIBLE BUILDINGS IN EACH
 COMMUNITY DISTRICT, NEIGHBORHOOD TABULATION AREA, COUNCIL DISTRICT,  NEW
 YORK  STATE  ASSEMBLY  DISTRICT, AND NEW YORK STATE SENATE DISTRICT, THE
 BUILDING CLASSIFICATION, IN ACCORDANCE WITH SECTION THREE HUNDRED TWO OF
 THE NEW YORK CITY BUILDING CODE, OF EACH  SUCH  ELIGIBLE  BUILDING,  THE
 NUMBER  OF DWELLING UNITS IN EACH SUCH ELIGIBLE BUILDING, AND THE NUMBER
 OF QUALIFYING RENTAL UNITS IN EACH SUCH ELIGIBLE BUILDING; AND
   (2) THE NUMBER OF  ELIGIBLE  BUILDINGS  WHOSE  REHABILITATION  PROGRAM
 BENEFITS WERE TERMINATED OR REVOKED AND THE NUMBER OF ELIGIBLE BUILDINGS
 AGAINST  WHICH  ACTIONS WERE TAKEN, PURSUANT TO CLAUSES (A), (B) AND (C)
 OF SUBPARAGRAPH FIVE OF PARAGRAPH (E) OF THIS  SUBDIVISION,  TO  ADDRESS
 NONCOMPLIANCE  WITH  THE  PROVISIONS OF SUCH SUBDIVISION, AND THE STREET
 ADDRESS OF EACH SUCH ELIGIBLE BUILDING.
   (U) UPDATES TO THE CERTIFIED REASONABLE COST SCHEDULE.  WHEN  UPDATING
 THE  CERTIFIED  REASONABLE COST SCHEDULE, THE LOCAL HOUSING AGENCY SHALL
 CONSIDER THE FACTORS SUCH AGENCY DEEMS RELEVANT, SUCH  AS  THE  REQUIRE-
 MENTS  IMPOSED  ON  ELIGIBLE  BUILDINGS BY LOCAL LAW, INCLUDING, BUT NOT
 LIMITED TO, ARTICLES THREE HUNDRED TWO, THREE HUNDRED TWENTY  AND  THREE
 HUNDRED  TWENTY-ONE OF CHAPTER THREE OF TITLE TWENTY-EIGHT OF THE ADMIN-
 ISTRATIVE CODE OF THE CITY OF NEW YORK, AND THE EFFECTS OF INFLATION  ON
 SUCH  COSTS  SINCE THE PRIOR DATE THE CERTIFIED REASONABLE COST SCHEDULE
 WAS UPDATED. THE  LOCAL  HOUSING  AGENCY  SHALL  PUBLISH  THE  CERTIFIED
 REASONABLE COST SCHEDULE ON ITS WEBSITE.
   § 2. This act shall take effect immediately.