NY Priv Hous Fin L § 405 (2021)
2021 New York Laws PVH - Private Housing Finance Article 8 - Loans to Owners of Existing Multiple Dwellings 405 - Rent Control; Tax Exemption.

§  405. Rent control; tax exemption. 1. Notwithstanding the provisions   of, or any regulations promulgated pursuant to,  the  emergency  housing   rent  control law, the local emergency housing rent control act or local   law enacted pursuant thereto: (1) housing accommodations in any multiple   dwelling aided by a loan pursuant to this  article  shall  have  maximum   rents  prescribed  in  accordance with and shall be fully subject to the   provisions of said laws and regulations during the life of the  loan  or   during  any period in which any exemption and abatement from taxation on   the  property  resulting  from   the   installations,   alterations   or   improvements  made with such loan remain in effect or for a period of at   least ten years from the occupancy date, whichever is  later;  (2)  upon   payment  of the loan or the expiration of the said tax exemption and tax   abatement or of the said ten year period, whichever  is  later,  housing   accommodations in any such multiple dwelling shall, upon application, be   decontrolled, unless immediately prior to such payment or expiration the   rents  of  such housing accommodations would have been controlled by the   provisions of said laws and regulations, other  than  pursuant  to  this   article,  in  which  event  such  housing  accommodations shall continue   subject to the provisions of said  laws  and  regulations  to  the  same   extent  and  in  the same manner as if this article had never applied to   such  accommodations;  (3)  should  the  provisions  of  said  laws  and   regulations  expire while any loan made pursuant to this article remains   unpaid or before the expiration  of  the  said  tax  exemption  and  tax   abatement  or  of  the  said  ten  year period, whichever is later, then   housing accommodations in multiple dwellings aided by such  loans  shall   be  subject  to control by the agency to the same extent and in the same   manner as they were subject to control by the  temporary  state  housing   rent  commission  or by the city housing rent agency created pursuant to   the local emergency housing rent control act. However, the maximum  rent   for  any  such housing accommodations shall be the rent last established   by the said rent commission or by the  said  city  housing  rent  agency   subject  to  adjustment by the agency pursuant to the provisions of this   article and regulations of the agency promulgated pursuant  thereto  and   (4) should the provisions of said laws and regulations not be applicable   in  a  municipality  prior  to  the  making  of  a loan pursuant to this   article, then rents in  housing  accommodations  in  multiple  dwellings   aided  by  such  loans shall be subject to regulation by the agency in a   manner calculated to assure compliance with the policy and  purposes  of   this article.1-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this   section, and subject to the provisions of subdivision twenty of  section   six hundred fifty-four of this chapter, where the housing accommodations   in  any  multiple  dwelling are aided pursuant to this article by a loan   made by the New York city housing development corporation, maximum rents   during the life of such loan shall be prescribed by the agency  and  the   rental  rate  may  be  varied  by  the  agency  from  time  to time upon   application by the owner or by the New  York  city  housing  development   corporation  so  as  to secure, together with all other income from such   property, sufficient  income  to  meet  within  reasonable  limits,  all   necessary  payments  to  be  made by the owner of all expenses including   fixed charges, sinking funds, reserves and dividends.* 1-b. Notwithstanding the  provisions  of  subdivision  one  of  this   section,  where  the housing accommodations in any multiple dwelling are   aided by a loan pursuant to this article made by the municipality on  or   after  September  first, nineteen hundred eighty-four, and provided that   such housing accommodations were vacant at the time of the making of the   loan, maximum rents during the life of such loan shall be prescribed  by   the  agency and the rental rate may be varied by the agency from time to    time upon application by the owner or by the agency  so  as  to  secure,   together  with all other income from such property, sufficient income to   meet within reasonable limits, all necessary payments to be made by  the   owner  of all expenses, including fixed charges, sinking funds, reserves   and dividends.* NB Effective until July 1, 2024* 1-b. Notwithstanding the  provisions  of  subdivision  one  of  this   section,  where  the housing accommodations in any multiple dwelling are   aided by a loan pursuant to this article made by the municipality on  or   after  September  first, nineteen hundred eighty-four, and provided that   such housing accommodations were vacant at the time of the making of the   loan, maximum rents during the life of such loan shall be prescribed  by   the  agency and the rental rate may be varied by the agency from time to   time upon application by the owner or by the agency  so  as  to  secure,   together  with all other income from such property, sufficient income to   meet within reasonable limits, all necessary payments to be made by  the   owner  of all expenses, including fixed charges, sinking funds, reserves   and dividends.* NB Effective July 1, 2024* 1-c. Except with  respect  to  dwelling  accommodations  subject  to   subdivision   one-a  or  one-b  of  this  section,  notwithstanding  the   provisions  of  subdivision  one  of  this  section  or  any  regulation   promulgated  pursuant  to  the  emergency  housing rent control law, the   local  emergency  housing  rent  control  act,  the   emergency   tenant   protection  act  of  nineteen  seventy-four,  or  any  local law enacted   pursuant thereto, upon completion of the rehabilitation  of  a  multiple   dwelling  which  is aided by a loan pursuant to this article made by the   municipality on or after September first, nineteen  hundred  eighty-six,   the  agency  shall  establish  the initial rent for each rental dwelling   unit within  the  multiple  dwelling.  All  dwelling  units  within  the   multiple  dwelling  subsequent  to establishment of initial rents by the   agency shall be subject  to  the  rent  stabilization  law  of  nineteen   hundred  sixty-nine.  The occupant in possession of such a dwelling unit   when it is made subject  to  the  rent  stabilization  law  of  nineteen   hundred  sixty-nine shall be offered a choice of a one or two year lease   at the initial rents  established  by  the  agency  notwithstanding  any   contrary  provisions  of,  or  regulations adopted pursuant to, the rent   stabilization law of  nineteen  hundred  sixty-nine  and  the  emergency   tenant  protection  act of nineteen seventy-four. The agency shall cause   all  tenants  in  occupancy  of  each  dwelling  unit  affected  by  the   provisions  of this section to be notified of and have an opportunity to   comment on the  contemplated  rehabilitation.  Such  notification  shall   advise  such  tenants  of the approximate expected rent increase and the   subsequent availability of a one or two year  lease.  Such  notification   and  opportunity  to comment shall be provided before the rehabilitation   and  again  after  the  construction  is  completed   and   before   the   establishment of the initial rents.* NB Expires July 1, 20242.  The  municipality  may,  by  local law, provide for exemption from   taxation of any increase in valuation resulting from  the  installation,   alterations  or improvements performed with the aid of such loans or for   abatement of taxation on such property, including the land, or for  both   such  exemption  and abatement, to the same extent, for the same period,   and under the same terms and conditions as such exemption or  abatement,   or  both,  may  be  provided by local law enacted under the terms of any   currently effective statute authorizing the granting of tax exemption or   tax abatement, or both, in aid  of  the  rehabilitation,  alteration  or   improvement  of  multiple dwellings or the elimination of unhealthful or    dangerous conditions therein. Notwithstanding any contrary provisions of   any general, special or local law, a property aided by a  loan  pursuant   to  this  article  shall  not  be  ineligible  for  tax exemption or tax   abatement or both, as provided by local law enacted pursuant to statute,   solely  because  such  property is not subject to control of rents under   the emergency housing rent control law or local law enacted pursuant  to   the local emergency housing rent control act, but such tax exemption and   tax  abatement  shall  terminate if and when such property is subject to   control of rents neither under the emergency housing rent  control  law,   local  law  enacted pursuant to the local emergency housing rent control   act or this article.