§ 489-gggg. Conversion of property. 1. Any recipient whose property is
the subject of a certificate of eligibility for commercial or renovation
construction work, and who, prior to the expiration of the benefit
period, uses such property as industrial property, shall continue to
receive benefits for commercial or renovation construction work as the
case may be.

2. Any recipient whose property is the subject of a certificate of
eligibility for industrial construction work, and who, prior to the
expiration of the benefit period, uses such property as commercial
property, shall cease to be eligible for further exemption or abatement
for industrial construction work as of the last date to which such
recipient proves by clear and convincing evidence that such property was
used as industrial property, and shall pay with interest any taxes for
which an exemption or abatement was claimed after such date, except
that:

(a) a recipient of a certificate of eligibility for industrial
construction work in a special exemption area who would have been
eligible to receive a certificate of eligibility for commercial
construction work at the time such recipient applied for benefits shall
continue to receive an exemption for industrial construction; and

(b) a recipient of a certificate of eligibility for industrial
construction work in a regular exemption area who would have been
eligible to receive a certificate of eligibility for commercial
construction work at the time such recipient applied for benefits shall,
commencing with the date of conversion to commercial property and
continuing until the expiration of the benefit period for commercial
construction work, receive any exemption which such recipient would have
received in the corresponding tax year pursuant to a certificate of
eligibility for commercial construction work; and

(c) a recipient of a certificate of eligibility for industrial
construction work in any area of the city on whose property at least
sixty-five per centum of the net square footage continues to be used or
held out for use for manufacturing activities after conversion to
commercial property, shall not be required to pay the pro rata share of
tax for which an exemption was claimed during the tax year in which such
conversion occurred.

3. Except as provided in subdivision four of this section, any
recipient whose property is the subject of a certificate of eligibility
for commercial, industrial or renovation construction work, and who uses
such property as residential property or for any restricted activity
prior to the expiration of the benefit period, shall cease to be
eligible for further exemption, abatement or deferral as of the date
such property was first used as residential property or for any
restricted activity. In the case of property in an area that was
designated as an exemption area at the time the certificate of
eligibility was issued, such recipient shall pay with interest any taxes
for which an exemption was claimed after such date, including the pro
rata share of tax for which any exemption was claimed during the tax
year in which such use occurred. In the case of industrial property,
such recipient shall pay with interest any taxes for which an exemption
or abatement was claimed after such date, including the pro rata share
of tax for which any exemption or abatement was claimed during the tax
year in which such use occurred. In the case of property in an area that
was designated as a deferral area at the time the certificate of
eligibility was issued, all deferred tax payments on the property shall
become due and payable immediately.

4. Notwithstanding subdivision three of this section, any recipient
whose property is the subject of a certificate of eligibility for
commercial or renovation construction work with an effective date of
July first, nineteen hundred ninety-two or after, and who, prior to the
expiration of the benefit period, uses a portion of such property as
residential property, shall cease to be eligible for further exemption
for commercial or renovation construction work for that portion of such
property used as residential property as of the date such portion of the
property was first used as residential property. Such recipient shall
pay, with interest, any taxes for which an exemption was claimed after
such date attributable to that portion of the property used as
residential property, including the pro rata share of tax for which such
exemption was claimed during the tax year in which such use occurred.
Such recipient shall continue to receive an exemption for commercial or
renovation construction work for that portion of the property which
continues to be used as commercial property.