NY Real Prop Tax L § 489 (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 489 - Exemption From Taxation of Alterations and Improvements to Multiple Dwellings to Eliminate Fire and Health Hazards; Abatement.

§  489.  Exemption  from  taxation  of alterations and improvements to multiple dwellings to eliminate fire and health hazards;  abatement.  1. (a)  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 January first, two thousand twenty-two, to adopt and amend local laws or ordinances  providing  that any increase in assessed valuation of real property shall be exempt from taxation  for  local  purposes,  as  provided herein, to the extent such increase results from:  (1) conversion of buildings or structures on such property to class  A multiple  dwellings  not  used  in  whole  or  in  part  for single room occupancy, including conversion of residential units qualified  for  the protection  of article seven-C of the multiple dwelling law in buildings classified as interim multiple dwellings pursuant  to  such  article  to units  which  are  in  compliance  with the standards of safety and fire protection set forth in article seven-B of the multiple dwelling law  or to  units  which  have  a  certificate  of occupancy as class A multiple dwellings; or  (2) alterations or improvements, including  as  improvements  asbestos abatement  to the extent such asbestos abatement is required by federal, state or local law, on such property to eliminate unhealthy or dangerous conditions or to replace inadequate and  obsolete  sanitary  facilities, any  of  which represent fire or health hazards, in any existing class A multiple dwellings or buildings consisting of one or two dwelling  units over  space  used  for commercial occupancy, except insofar as the gross cubic content of the building is increased thereby; or  (3) alterations or improvements on such property which are designed to conserve the use of fuel, electricity or other such  energy  sources  in any  dwellings  or other buildings or structures described in clause one or two of this paragraph; or  (4) alterations or improvements to the exterior walls of dwellings  or other  buildings  or structures on such property in order to comply with any provision of law regulating dwellings, buildings, or structures that are in an area designated as an historic or landmark area  or  that  are designated as historic or landmark buildings or structures; or  (5) alterations or improvements constituting a moderate rehabilitation of  a  substantially  occupied  class  A multiple dwelling within a city having a population of one million or more as  certified  by  the  local housing agency pursuant to local law or rules and regulations; or  (6)   alterations   or   improvements   constituting   a   substantial rehabilitation of a class A multiple  dwelling  or  a  conversion  of  a building  or  structure  into  a  class A multiple dwelling as part of a program to provide housing for low and  moderate  income  households  as defined  by  the local housing agency pursuant to rules and regulations, provided that such alterations or improvements or conversions  shall  be aided  by  a  grant,  loan  or  subsidy from any federal, state or local agency or instrumentality, including, in the  discretion  of  the  local housing agency, a subsidy in the form of a below market sale.   Such conversion, alterations or improvements shall be completed within thirty  months after the date on which same shall be started except that such  thirty  month  limitation  shall  not  apply  to  conversions   of residential units which are registered with the loft board in accordance with   article   seven-C  of  the  multiple  dwelling  law  pursuant  to subparagraph one of this paragraph.  Notwithstanding  the  foregoing,  a sixty  month period for completion shall be available for alterations or improvements undertaken by a housing development fund company  organized pursuant to article eleven of the private housing finance law, which are carried  out  with  the  substantial  assistance  of  grants,  loans  or  subsidies from any  federal,  state  or  local  governmental  agency  or instrumentality  or which are carried out in a property transferred from such city if alterations and improvements  are  completed  within  seven years  after the date of transfer. In addition, the local housing agency is hereby empowered to grant an extension of the  period  of  completion for  any  project carried out with the substantial assistance of grants, loans or subsidies from any federal, state or local governmental  agency or  instrumentality,  if  such alterations or improvements are completed within  sixty  months  from  commencement  of  construction.   Provided, further,  that such conversion, alterations or improvements shall in any event be completed prior to June  thirtieth,  two  thousand  twenty-two. Exemption  for  conversions,  alterations  or  improvements  pursuant to subparagraph one, two, three or four of this  paragraph  shall  continue for  a  period not to exceed fourteen years and begin no sooner than the first quarterly tax bill immediately following the  completion  of  such conversion,  alterations  or  improvements. Exemption for alterations or improvements pursuant to this subparagraph or subparagraph five of  this paragraph  shall  continue  for a period not to exceed thirty-four years and shall begin no sooner than the first quarterly tax bill  immediately following  the  completion  of  such  alterations  or improvements. Such exemption shall be equal to the  increase  in  the  valuation  which  is subject  to  exemption  in full or proportionally under this subdivision for ten or thirty years, whichever is applicable. After such  period  of time,   the   amount   of  such  exempted  assessed  valuation  of  such improvements shall be reduced by twenty percent in each succeeding  year until  the  assessed  value  of  the  improvements  are  fully  taxable. Provided,  however,  exemption  for  any  conversion,   alterations   or improvements  which  are  aided  by a loan or grant under article eight, eight-A, eleven, twelve, fifteen or twenty-two of  the  private  housing finance  law,  section six hundred ninety-six-a or section ninety-nine-h of the general municipal law, or section three  hundred  twelve  of  the housing  act  of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the Cranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et. seq.), or started after July first, nineteen hundred eighty-three  by  a housing development fund company organized pursuant to article eleven of the  private  housing  finance  law  which  are  carried  out  with  the substantial assistance of grants, loans or subsidies from  any  federal, state  or  local  governmental  agency  or  instrumentality or which are carried  out  in  a  property  transferred  from  any  city  and   where alterations  and improvements are completed within seven years after the date of transfer may commence  at  the  beginning  of  any  tax  quarter subsequent  to the start of such conversion, alterations or improvements and  prior  to  the  completion  of  such  conversion,  alterations   or improvements.  (b)  Any  city  to  which the multiple dwelling law is not applicable, acting through its local legislative body or other governing agency,  is hereby  authorized  and empowered, to and including June first, nineteen hundred seventy-two,  to  adopt  and  amend  local  laws  or  ordinances providing  that  any  increase  in  assessed  valuation  resulting  from alterations and improvements to eliminate presently  existing  unhealthy or  dangerous  conditions in any multiple dwellings occupied, as a rule, for permanent residence purposes or to replace inadequate  and  obsolete sanitary  facilities  any  of which represent fire or health hazards, in such dwellings except insofar as the gross cubic content of the building is increased thereby, shall be exempt from taxation for  local  purposes for  a  period  not to exceed twelve years after the taxable status date immediately  following  the  completion  thereof,  provided   that   the alterations  or  improvements  for which the benefits of any such law or  ordinance are claimed were started after March first,  nineteen  hundred sixty-two,  and  completed  within two years from the date on which they were started and in any event prior to December  thirty-first,  nineteen hundred seventy-four.   1-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this section, alterations, improvements or conversions  of  any  building  or structure  that  are  eligible for benefits pursuant to paragraph (a) of subdivision one of this  section  except  insofar  as  the  gross  cubic content  of  such  building  or  structure is increased thereby shall be eligible for such benefits insofar as the gross cubic  content  of  such building or structure is increased thereby provided that:  (a) for all tax lots now existing or hereafter created, at least fifty percent  of  the  floor  area  of  the  completed  building or structure consists of the pre-existing building or structure that  was  converted, altered  or improved in accordance with paragraph (a) of subdivision one of this section, and  (b) for tax lots in the city of New York  now  existing  or  hereafter created  within  the  following  area  in the borough of Manhattan, such conversions, alterations or improvements are aided by a grant,  loan  or subsidy  from  any  federal,  state  or local agency or instrumentality: beginning at the intersection of the United States pierhead line in  the Hudson  river  and  the  center line of Chambers street extended, thence easterly to the center line of Chambers street and continuing along  the center  line  of  Chambers  street  to the center line of Centre street, thence southerly along the center line of Centre street  to  the  center line  of  the Brooklyn Bridge to the intersection of the Brooklyn Bridge and the United States pierhead line in the East river, thence  northerly along  the  United  States  pierhead  line  in  the  East  river  to the intersection of the United States pierhead line in the  East  river  and the center line of One Hundred Tenth street extended, thence westerly to the  center  line  of  One Hundred Tenth street and continuing along the center line of One Hundred Tenth street to its westerly terminus, thence westerly to the intersection of the center line  of  One  Hundred  Tenth street extended and the United States pierhead line in the Hudson river, thence  southerly  along  the  United States pierhead line in the Hudson river to the point of  beginning.  For  purposes  of  this  subdivision, "floor  area"  shall  have  the  same  meaning  as  in  paragraph  b  of subdivision one of section four  hundred  twenty-one-a  of  this  title. Nothing  in  this  subdivision  shall  be  construed to provide benefits pursuant to subdivision two of this section for the  costs  attributable to the increased cubic content in any such building or structure.   2.  (a)  With  respect  to  conversions,  alterations  or improvements eligible to receive the benefits of subdivision one of this section, any such local law or ordinance may  also  provide  that  the  duration  and amount  of  abatement of taxes on such property, including the land, may be separately established for each  of  the  categories  of  eligibility described  in  paragraph  a of subdivision one of this section, provided that:  (1) except  as  provided  in  subparagraphs  two  and  three  of  this paragraph, the annual abatement of taxes on such property, including the land, shall not be an amount greater than eight and one-third per centum of  the  total  cost of such conversion, alterations or improvements nor shall  the  abatement  exceed  the  total  cost  of  such   conversions, alterations  or  improvements or be effective for more than twenty years and the annual abatement of taxes in any consecutive twelve-month period shall  in  no  event  exceed  the  amount  of  taxes  payable  in   such twelve-month period;  (2)  in  the  case  of  alterations  or  improvements  (i) pursuant to subparagraph five of paragraph (a) of subdivision one  of  this  section which  are  carried out with the substantial assistance of grants, loans or subsidies from any federal, state or local agency or  instrumentality or  any  not-for-profit  philanthropic organization one of whose primary purposes is providing low or moderate income housing  or  financed  with mortgage  insurance  by the New York city residential mortgage insurance corporation or the state of New York mortgage agency or  pursuant  to  a program   established   by   the   federal  housing  administration  for rehabilitation of existing multiple dwellings in a neighborhood strategy area as defined by the United States department  of  housing  and  urban development,  or  (ii)  pursuant to subparagraph six of paragraph (a) of subdivision one of this section the abatement of taxes on such property, including the land, shall not exceed one hundred fifty per centum of the certified  reasonable  cost  of  the  alterations  or  improvements,  as determined  under  regulations of the local housing agency administering the local law, and the annual abatement of taxes shall not exceed twelve and one-half per centum of such certified reasonable cost, provided that such abatement shall not be effective for more than twenty years and the annual abatement of taxes in any consecutive twelve-month  period  shall in  no  event  exceed  the  amount of taxes payable in such twelve-month period; or  (3) in the case of alterations or improvements carried  out  with  the substantial  assistance  of grants, loans or subsidies from any federal, state  or  local  agency  or  instrumentality  or   any   not-for-profit philanthropic  organization  one  of whose primary purposes is providing low or moderate income housing, or financed with mortgage  insurance  by the  New  York  city  residential  mortgage insurance corporation or the state of New York mortgage agency or pursuant to program established  by the  federal  housing  administration  for  rehabilitation  of  existing multiple dwellings in a neighborhood strategy area  as  defined  by  the United  States  department  of  housing and urban development where such alterations or improvements are  done  on  property  located  in  census tracts  in  which seventy-five percent or more of the population live in households which earn fifty percent or  less  of  the  median  household income  of  the  city  in  which  such  census  tracts  are located, the abatement of taxes on such  property,  including  the  land,  shall  not exceed  one hundred fifty per centum of the certified reasonable cost of the alterations or improvements, as determined under regulations of  the local  housing  agency  administering  the  local  law,  and  the annual abatement of taxes shall not exceed twelve and one-half  per  centum  of such  certified  reasonable cost, provided that such abatement shall not be effective for more than twenty years  and  the  annual  abatement  of taxes  in  any  consecutive twelve-month period shall in no event exceed the amount of taxes payable in such twelve month period.  (b) Such abatement:  (1)  shall  begin  no  sooner  than  the  first  quarterly  tax   bill immediately  following the completion of such conversion, alterations or improvements, or  (2) in the case of any such conversion,  alterations  or  improvements (i) completed after December thirty-first, nineteen hundred seventy-five and  aided  by a loan under article eight of the private housing finance law, or (ii) started after July first,  nineteen  hundred  seventy-seven and aided by a loan under article fifteen of the private housing finance law,  or  (iii)  started  after  July first, nineteen hundred eighty and aided by a loan under article eight-A of the private housing finance law or (iv) started after July first, nineteen hundred eighty and aided by a loan under section three hundred twelve of the housing act  of  nineteen  hundred sixty-four (42 U.S.C.A. 1452b), or (v) started after July first, nineteen  hundred  ninety-two and aided by a loan or grant under article eleven, twelve, or  twenty-two  of  the  private  housing  finance  law, section six hundred ninety-six-a or section ninety-nine-h of the general municipal  law, or the Cranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et. seq.), or (vi) started after July first, nineteen hundred eighty-eight by or on behalf of a company not  qualifying  under any  of  the  above  provisions  which  is  a not-for-profit corporation qualified pursuant to section 501(c)(3) of the Internal Revenue Code and which has entered into a regulatory agreement  with  the  local  housing agency  requiring  operation  of  the  property  as  housing for low and moderate income persons and families; may be commenced at the  beginning of  any  tax  quarter  subsequent  to  the  start  of  such  conversion, alterations  or  improvements  and  prior  to  the  completion  of  such conversion, alterations or improvements.   3.  Any  such  local  law or ordinance may also provide that where the improvements and alterations include or benefit that part of a  building which  is  not  occupied for dwelling purposes, the increase in assessed valuation and the cost of the alteration shall be  apportioned  so  that the  benefits  of  the  local law or ordinance shall not be provided for improvements or alterations made for other than dwelling purposes.   4. Any such local law or ordinance may also provide that its  benefits shall  not  become  available  to  any  multiple  dwelling,  building or structure as provided in  paragraph  (a)  of  subdivision  one  of  this section  unless  and until such multiple dwelling, building or structure as provided in paragraph (a) of subdivision one of this section complies with the applicable provisions of law. Any such  law  or  ordinance  may make  provision  as  to the date as of which particular improvements and alterations  shall  be  deemed  to  have  been  completed  or  commenced therefor,  as  the  case  may  be, for the purpose of qualifying for the benefits thereof. Any such local law or  ordinance  may  make  provision authorizing  the adoption of rules and regulations by the local agencies of government for the effectuation of the purposes of this section.  Any such  local  law  or  ordinance  shall provide that the benefits of this section shall apply to any multiple dwelling, building or  structure  as provided  in paragraph (a) of subdivision one of this section, which (i) is operated exclusively for the benefit of persons or families  who  are entitled  to  occupancy by reason of ownership of stock or membership in the corporate owner, or for the benefit of such persons or families  and other  persons  or  families  entitled  to  occupancy  under  applicable provisions of law without  ownership  of  stock  or  membership  in  the corporate  owner,  or  (ii) is owned as a condominium and is occupied as the residence or home of three or more families living independently  of each other; provided, however, that any such law or ordinance shall make provision,  in  addition  to all other conditions of eligibility for the benefits of this section, except for multiple dwellings in  which  units have   been  newly  created  by  substantial  rehabilitation  of  vacant buildings  or  conversions  of  non-residential  buildings,   that   the availability of benefits under this section for such multiple dwellings, buildings  or  structures shall be conditioned on the following: (1) any items of work designated as a major capital  improvement  in  the  rules adopted  by the local housing agency or asbestos abatement to the extent such asbestos abatement is required by federal, state or local law,  and (2)  (i)  the assessed valuation of such multiple dwelling, building, or structure, including land, shall not exceed an average of forty thousand dollars per dwelling unit  at  the  time  of  the  commencement  of  the alterations or improvements, and (ii) the average per room sale price of the  dwelling  units or the stock allocated to such dwelling units shall  have been no greater than thirty-five percent of  the  maximum  mortgage amount  for  a  single  family home eligible for purchase by the Federal National  Mortgage  Association  during  the  three  years   immediately preceding  the commencement of the alterations or improvements; provided that if less than ten percent of the dwelling  units  or  an  amount  of stock  less  than  the  amount allocable to ten percent of such dwelling units was not transferred  during  such  preceding  three  year  period, eligibility   for  benefits  shall  be  conditioned  upon  the  multiple dwelling, building,  or  structure  having  an  assessed  valuation  per dwelling  unit of no more than forty thousand dollars at the time of the commencement of the  alteration  or  improvements.  Notwithstanding  the foregoing, such local law shall also provide benefits under this section for  work completed in any such multiple dwelling, building or structure within the first  three  years  of  its  conversion  to  cooperative  or condominium  ownership,  as  evidenced  by  the  date on which the first closing in a condominium to a bona fide purchaser occurs or in the  case of  a  cooperative, the date on which the shares allocable to a unit are conveyed to a bona fide purchaser. Any such local law shall  also  limit the  maximum  amount  of  tax abatement which may be received in any tax period under this section by any such  multiple  dwelling,  building  or structure  for any alterations and improvements commenced three years or more  after  its  initial  conversion  to  cooperative  or   condominium ownership  to  an  amount  not  in  excess  of two thousand five hundred dollars per dwelling unit  of  the  certified  reasonable  cost  of  the alterations or improvements as determined under regulations of the local housing  agency administering the local law. Any such local law may also require such certifications and consents to access to records, including other tax  records,  as  may  be  deemed  appropriate  to  enforce  such conditions of eligibility. Any such local law or ordinance shall provide that  the  local  agencies  of government shall establish maximum dollar limits for specified items of cost for any  conversion,  alterations  or improvements.  No costs in excess of such maximum dollar limits shall be considered in determining the benefits of this section.   4-a. Notwithstanding any contrary provision  of  subdivision  four  of this  section,  any  such  local law or ordinance shall provide that the availability of benefits under this section to  any  multiple  dwelling, building  or  structure  owned  and operated by a limited-profit housing company established pursuant to  article  two  of  the  private  housing finance law shall not be conditioned upon the assessed valuation of such multiple  dwelling, building or structure, including land, as calculated as an average dollar amount per  dwelling  unit,  at  the  time  of  the commencement of the alterations or improvements; provided, however, that such  limited-profit housing company (a) is organized and operating as a mutual company, (b) continues to be organized and operating as a  mutual company  and  to  own  and  operate  the  multiple dwelling, building or structure receiving such benefits, and (c) has entered  into  a  binding and  irrevocable agreement with the commissioner of housing of the state of  New  York,  the  supervising  agency,  the  New  York  city  housing development  corporation,  or  the New York state housing finance agency prohibiting the dissolution or  reconstitution  of  such  limited-profit housing  company  pursuant to section thirty-five of the private housing finance law for not less than fifteen years  from  the  commencement  of such  benefits.  For the purposes of this subdivision, the terms "mutual company" and "supervising agency" shall have the same  meanings  as  set forth in section two of the private housing finance law.   4-a-1.  Notwithstanding  any contrary provision of subdivision four of this section, any such local law or ordinance  shall  provide  that  the availability  of  benefits  under this section to any multiple dwelling,  building or structure owned and  operated  by  a  redevelopment  company established  pursuant to article five of the private housing finance law shall not be conditioned upon the assessed valuation  of  such  multiple dwelling,  building  or  structure,  including land, as calculated as an average dollar amount per dwelling unit, at the time of the commencement of  the  alterations  or  improvements:  provided,  however,  that  such redevelopment  company  (a)  is  organized  and  operating  as  a mutual redevelopment company, (b) continues to be organized and operating as  a mutual  redevelopment  company  and  to  own  and  operate  the multiple dwelling, building or structure receiving such  benefits,  and  (c)  has entered  into  a binding and irrevocable agreement with the commissioner of housing and community renewal, the supervising agency, the  New  York city  housing  development  corporation,  or  the New York state housing finance agency prohibiting the dissolution  or  reconstitution  of  such redevelopment  company  pursuant  to section one hundred twenty-three of the private housing finance law until the earlier to occur  of:  (i)  in fifteen  years  from  the  commencement  of  such  benefits, or (ii) the expiration of any tax exemption granted to  such  redevelopment  company pursuant  to  section  one  hundred  twenty-five  of the private housing finance law. For the purposes of this subdivision,  the  terms  "mutual" and  "supervising  agency"  shall have the same meanings as set forth in section one hundred two of the private housing finance law.   4-b. Notwithstanding any contrary provision  of  the  private  housing finance  law, any such local law shall provide that the benefits of this section shall apply to any limited profit housing company as provided in this section. In addition to the limitations set  forth  in  subdivision eleven  of  this  section, such multiple dwelling, building or structure shall be eligible for benefits only where at  least  one  building  wide improvement  or  alteration  is  part  of  the application for benefits. Furthermore, to the extent that such  alterations  or  improvements  are financed  with  grants,  loans  or subsidies from any federal, state, or local agency or instrumentality, such  multiple  dwelling,  building  or structure  shall  be  eligible  for  benefits only if the limited profit housing company has entered into a  binding  and  irrevocable  agreement with  the  commissioner  of  housing  of  the  state  of  New  York, the supervising agency, as such term  is  defined  in  section  two  of  the private  housing  finance  law,  the  New  York city housing development corporation, or the New York state housing  finance  agency  prohibiting the dissolution or reconstitution of such limited profit housing company pursuant  to  section thirty-five of the private housing finance law for not less than fifteen years from the commencement of such benefits.  The abatement of taxes on such property, including the land, shall not be an amount  greater  than ninety per centum of the certified reasonable cost of such alterations or improvements, as determined under regulations  of the  local  housing agency administering the local law, nor greater than eight and one-third percent of such certified  reasonable  cost  in  any twelve  month  period,  nor be effective for more than twenty years. The annual abatement of taxes in any twelve month period shall in  no  event exceed fifty percent of the amount of taxes payable in such twelve month period  pursuant to the applicable exemption granted pursuant to article two of the private housing finance law or other applicable laws or fifty percent of payments made in lieu of taxes in such twelve month period.   4-c. (a) Any such local law may also provide that a group of  multiple dwellings  which was developed as a planned community and which is owned as two separate condominiums containing a total of ten thousand or  more dwelling  units  shall  be  eligible  for tax exemption and abatement as provided in this subdivision.  (b) Any increase in assessed valuation resulting from  alterations  or improvements  to  one  or more multiple dwellings in a planned community described in paragraph (a) of this  subdivision  shall  be  exempt  from taxation  for  local  purposes.  Such  exemption  shall  be equal to the increase  in  the  valuation  which  is  subject to exemption under this paragraph for thirty years. After such period of  time,  the  amount  of such  exempted assessed value shall be reduced by twenty percent in each succeeding  year  until  the  assessed  value  of  the  alterations   or improvements  is  fully  taxable.  Such  exemption  may  commence at the beginning of any tax quarter subsequent to the start of such alterations or improvements. In no event  shall  such  alterations  or  improvements directly  or  indirectly  result  in  an  equalization  increase  in the assessed valuation of any multiple dwelling forming part of the  planned community where such alterations or improvements are performed.  (c)  The  abatement  of  taxes  on  a  planned  community described in paragraph (a) of this subdivision, including the land, shall not  exceed the  greater  of  (i)  one  hundred  fifty  per  centum of the certified reasonable cost of the alterations or improvements, as determined  under the regulations of the local housing agency administering the local law, and  (ii)  the  construction  cost  of  the  alterations or improvements identified in such regulations. Such abatement shall  not  be  effective for  more  than  twenty  years  and the annual abatement of taxes in any consecutive twelve-month period shall not be greater than ten per centum of the total abatement granted and shall not exceed the amount of  taxes payable  in  such  consecutive twelve-month period. Such abatement shall begin no sooner than the first quarterly tax bill immediately  following the  completion of such alterations or improvements. The limitations set forth in subdivision  four  of  this  section  for  multiple  dwellings, buildings  and structures owned as condominiums shall be inapplicable to benefits  granted  pursuant  to  this  subdivision.  Abatement  benefits granted  pursuant  to this subdivision shall be apportioned among all of the condominium tax lots within the condominium in which the alterations or improvements are made, although such alterations or improvements  may have  been  made  to  one  or  fewer  than all of the multiple dwellings therein.  (d) In  the  event  that  multiple  alterations  or  improvements  are undertaken  in  a  planned  community described in paragraph (a) of this subdivision and separate applications for benefits  therefor  are  made, all  requirements  concerning  physical condition of and compliance with law by the multiple dwellings in such planned community shall apply only upon completion of all such alterations or improvements,  provided  that all such alterations or improvements are completed within six years.  (e)  Except  as  provided in this subdivision, all of the requirements imposed by this section  on  projects  described  in  paragraph  (a)  of subdivision  one  of  this section shall be applicable to alterations or improvements granted benefits pursuant to this subdivision.  (f) This subdivision  shall  be  applicable  only  to  alterations  or improvements  completed  prior  to  December  thirty-first, two thousand five.   5. To the end that conversions, alterations, and improvements aided by this section shall interfere as  little  as  practicable  with  urgently needed   public   improvements  or  the  clearance,  rehabilitation,  or rebuilding of substandard and unsanitary areas, and shall be confined to multiple dwellings, buildings or structures as provided in paragraph (a) of subdivision one of this section which are  structurally  sound,  such local  law  or  ordinance  may  provide that exemption or abatement from taxation hereunder shall be restricted to multiple dwellings,  buildings or  structures  as  provided in paragraph (a) of subdivision one of this  section (a) which the local planning commission in any such  city  shall certify  will  not  interfere  with projected public improvements or the clearance and rebuilding of substandard and insanitary  areas,  and  (b) which  the  local building department certifies to be structurally sound and (c) which,  if  in  an  area  approved  for  clearance,  replanning, reconstruction  or neighborhood rehabilitation pursuant to chapter eight hundred eighty-seven of the laws of nineteen hundred forty-five, as from time to time amended, or if in an area designated  for  studies,  tests, demonstrations  and  other activities for the prevention and elimination of slums and urban blight pursuant to chapter six hundred eight  of  the laws  of  nineteen hundred fifty-six as from time to time amended, or if in an area for which a preliminary  or  final  plan  has  been  approved pursuant  to  chapters  six hundred eighty-eight of the laws of nineteen hundred fifty-seven or nine hundred twenty-four of the laws of  nineteen hundred  fifty-eight,  as  from  time  to  time amended, or chapter nine hundred seventy-one of the laws of nineteen hundred sixty, or if  in  an area for which an urban renewal plan or tests, studies or demonstrations have  been approved pursuant to article fifteen of the general municipal law, is certified by the project board for the area as a dwelling  which is  to  be  or  has  been  improved  in conformity with such replanning, reconstruction, neighborhood improvement, studies, tests, demonstrations or plan.   6. Notwithstanding  the  provisions  of  the  multiple  dwelling  law, multiple   residence   law,  and  any  local  law,  ordinance,  rule  or regulation, any city to which this section is applicable acting  through its  local  legislative  body  may  provide,  in  a manner that shall be uniform as to  any  particular  type  or  class  of  multiple  dwelling, building or structure as provided in paragraph (a) of subdivision one of this  section,  that,  any  multiple  dwelling, building or structure as provided in paragraph (a) of subdivision one of this  section  to  which alterations and improvements are made pursuant to this section and which did  not  require  a  certificate of occupancy on April second, nineteen hundred forty-five, and, in the case of multiple dwellings, buildings or structures as provided in paragraph  (a)  of  subdivision  one  of  this section  to  which  the  multiple  residence  law is applicable, on July first, nineteen hundred fifty-two, may not be  occupied  lawfully  after such  date  upon  the  completion  of  such alterations and improvements without a certificate of occupancy.   7. Any local law or ordinance may also  provide  any  or  all  of  the following:  (a)  The  benefits  of  this  section  shall not apply to any multiple dwelling,  building  or  structure  as  provided  in  paragraph  (a)  of subdivision   one   of  this  section  in  which  rents,  subsequent  to alterations and improvements, shall exceed such amount, if any,  as  may be  fixed  by  the  local  legislative  body  or by the municipal agency designated by the local legislative body of the  municipality  involved, based upon a standard formula.  (b)  (1)  The benefits of this section shall not apply to any multiple dwelling,  building  or  structure  as  provided  in  paragraph  (a)  of subdivision  one  of this section which is not subject to the provisions of the emergency housing rent  control  law  or  to  local  law  enacted pursuant  to  the  local  emergency  housing rent control act, where the local legislative body or other governing  agency  of  the  municipality involved  shall  prescribe  that  the benefits herein provided shall not apply to such multiple dwelling, building or structure  as  provided  in paragraph  (a)  of  subdivision  one  of this section provided that such local legislative body or other  governing  agency  shall  not  use  the authority  conferred  in  this  paragraph  (b)  to  rescind any benefits  granted under former section five-h of the tax law prior to July  first, nineteen  hundred  fifty-eight;  and  further  provided  that  where the benefits provided herein or under such former section five-h of the  tax law  are  granted  or  had been granted on or after July first, nineteen hundred fifty-eight, to any multiple  dwelling,  building  or  structure which  is  decontrolled subsequent to the granting of such benefits, the local legislative body or  other  governing  agency  may  withdraw  such benefits from such dwelling.  (2)  Any  dwelling  unit  subject  to rent regulation on or before the effective date of this subparagraph as  a  result  of  receiving  a  tax exemption or abatement pursuant to this section shall be subject to such regulation  until the occurrence of the first vacancy of such unit after such benefits are no longer being received at which time such unit shall be deregulated or if each lease and renewal thereof for  such  unit  for the tenant in residence at the time of the expiration of the tax benefit period  has  included  a  notice in at least twelve point type informing such tenant that the unit shall become subject to deregulation upon  the expiration of such tax benefit period and states the approximate date on which such tax benefit period is scheduled to expire, such dwelling unit shall  be  deregulated  as  of the end of the tax benefit period; unless such  unit  would  have  been  subject  to  regulation  under  the  rent stabilization law of nineteen hundred sixty-nine or the emergency tenant protection act of nineteen seventy-four.  (c) The benefits of this section shall apply to any multiple dwelling, building or structure as provided in paragraph (a) of subdivision one of this  section  occupied, as a rule, for permanent residence purposes and which is not used in whole or in part  for  single  room  occupancy  and which  is  not  subject  to the provisions of the emergency housing rent control law or to local law enacted  pursuant  to  the  local  emergency housing  rent  control  act,  provided that it is located within an area which has been designated by the local  planning  commission  under  the provisions  of  section  seventy-two-m of article fifteen of the general municipal law or where a program of local  neighborhood  improvement  or housing  maintenance  is being carried out under the supervision or with the assistance of the local government and provided that  the  rents  or carrying  charges, subsequent to alterations and improvements, (1) shall not exceed such amount, if any, as may be fixed by the local legislative body or by the municipal agency designated by the local legislative body of the municipality involved, based upon  a  standard  formula,  or  (2) where  the  local  legislative  body  so provides, shall not exceed such amount, if any, as may be fixed for such multiple dwelling, building  or structure  as  provided  in  paragraph  (a)  of  subdivision one of this section pursuant  to  any  local  law  enacted  pursuant  to  the  local emergency  housing  rent control act, and further provided that prior to such alterations and improvements, the multiple  dwelling,  building  or structure  as  provided  in  paragraph  (a)  of  subdivision one of this section,  if  a  multiple  dwelling,  was  either  a  multiple  dwelling occupied,  as a rule, as a temporary or transient residence or occupied, as a rule, for permanent residence purposes and used in whole or in part for single room occupancy.  (d) The benefits of this  section  shall  apply  to  any  building  or structure  as  provided  in  paragraph  (a)  of  subdivision one of this section, provided that the  rents  or  carrying  charges  subsequent  to conversion  (1) shall not exceed such amount, if any, as may be fixed by the local legislative body or by the municipal agency designated by  the local  legislative  body  of  the  municipality  involved,  based upon a standard formula, or (2) where the local legislative body  so  provides, shall  not exceed such amount, if any, as may be fixed for such dwelling  pursuant to any local  law  enacted  pursuant  to  the  local  emergency housing rent control act.   8. Notwithstanding any other provision of this section the benefits of this  section shall not apply to any private dwelling unless it is in an area defined by clause (c) of subdivision five of this  section  and  is certified by the project board for the area as a dwelling which is to be or has been improved in conformity with such replanning, reconstruction, neighborhood   improvement,  studies,  tests,  demonstrations  or  plan. Notwithstanding the foregoing, for purposes  of  this  section  and  any local  law  enacted  pursuant  hereto a class A multiple dwelling may be deemed to include any garden-type maisonette dwelling project consisting of a series of dwelling units which together and in their aggregate were arranged or designed  to  provide  three  or  more  apartments  and  are provided  as  a  group collectively with all essential services such as, but not limited to, water supply, house sewers and heat, and  which  are in  existence  and operated as a unit under single ownership on the date upon which an application for the benefits of this section  is  received by  the  city,  even  though  certificates  of occupancy were issued for portions thereof as private dwellings.   8-a. Notwithstanding the  provisions  of  subdivision  eight  of  this section  to  the contrary, unless excluded by local law, the benefits of this section may apply  to:  (i)  alterations  or  improvements  to  any private  dwelling; (ii) conversion of any private dwelling to a multiple dwelling; or (iii) conversion of any  multiple  dwelling  to  a  private dwelling, provided that such alterations, improvements or conversion are part  of  a  project  which  has  applied  for  or is receiving benefits pursuant to this section and shall be aided by a grant loan, or  subsidy from any federal, state, or local agency or instrumentality.   9. (a) During the period of such exemptions the assessment on any such land  and dwelling after such alterations and improvements, exclusive of the increase in valuation which is  subject  to  exemption  in  full  or proportionally  under  subdivision one of this section, shall not exceed the valuation of the  previously  existing  dwelling  appearing  on  the assessment rolls after the taxable status date immediately preceding the commencement  of such alterations and improvements plus the value of the land, any improvements other than those made  under  the  provisions  of this  section and the proportion of increased assessed valuation that is not exempt from taxation under  this  section,  which  proportion  shall remain  constant  during the term of the exemption. Where the alteration or improvement qualifies under subparagraph  two  of  paragraph  (a)  of subdivision  two  of  this  section  or  under  clause  (A)  or  (B)  of subparagraph one of paragraph (a) of subdivision eleven of this section, the exemption shall also include an exemption from  taxation  for  local purposes  for  twelve years upon that portion of the assessment, if any, which exceeds the transition assessment, as defined in  subdivision  two of  section eighteen hundred five of this chapter, in effect at the time of the commencement of the exemption hereunder.  (b)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this subdivision, except as provided in subparagraph three of this paragraph, for   buildings   in  which  alterations,  improvements  or  conversions qualifying for an exemption under this section are commenced on or after the date on which this paragraph becomes a law:  (1) The assessed value of  the  building  during  the  period  of  the exemption  shall be pro-rated between the exempt and taxable portions of the building assessment so that  throughout  the  exemption  period  the exempt   portion   of  the  building  assessment  shall  bear  the  same relationship to the non-exempt portion of the building assessment as  it did  on  the final tax roll on which an exemption was first available to  such building for alterations or  improvements  made  pursuant  to  this section  or  on  the  last  tax  roll on which such ratio was changed by reason of additional improvements, whichever  results  in  the  greatest percentage   of  exempt  assessed  valuation;  provided,  however,  that increases in building value due to (i) additional improvements  that  do not  qualify  for an exemption under this section, (ii) increases in the value of non-residential portions of the building, or  (iii)  non-exempt additions  to  cubic  content shall not be pro-rated, but shall be fully taxable.  (2) Reductions in the assessed value of the building during the period of the exemption shall be  pro-rated  between  the  taxable  and  exempt portions  of  the  building  assessment  in  the  proportion  which  was established pursuant to subparagraph one of this paragraph on the  final tax  roll  for  the first fiscal year for which an exemption was granted pursuant to this section, or on the last tax roll on  which  such  ratio was  changed  by  reason  of  additional improvements, whether exempt or non-exempt, or due to changes in the assessed  value  of  fully  taxable space.  In  no  case,  however,  shall the value of an exemption granted pursuant to this section be reduced during the  period  for  which  such exemption was granted, by reason of a reduction in the assessed value of the  building,  to an amount less than the amount of exemption appearing on the first tax roll following the grant of this exemption.  (3) During the first three years of such exemptions, the assessment on any such land and  dwelling  shall  be  determined  in  accordance  with paragraph (a) of this subdivision.   10. In cities with a population of one million or more, any such local law  or  ordinance  may  require  that, prior to application for any tax exemption or abatement pursuant to this section,  relocation  awards  be paid  to  certain  displaced  manufacturing  and other tenants under the terms and conditions set forth below:  (a)  Relocation  awards  for  certain   tenants   of   non-residential buildings.  Such local law or ordinance shall limit eligibility for such a  relocation  award to former tenants and former subtenants of premises in a non-residential building which is the subject of an application for an alteration permit for conversion to a class A multiple dwelling, who:  (1) leased and used the vacated premises to conduct  a  manufacturing, warehousing,  or  wholesaling business for not less than two consecutive years immediately prior to vacating;  (2) vacated such premises on or after April  first,  nineteen  hundred eighty-one for any reason other than eviction for non-payment of rent;  (3) vacated such premises (i) no earlier than twenty-four months prior to the filing date of an application for such alteration permit and (ii) no  later  than  the  completion  of  the conversion as evidenced by the issuance of a permanent certificate of occupancy for a class A  multiple dwelling;  (4)  either  purchased  or leased for a term of not less than eighteen months other premises within such city with a floor area not  less  than one-third of the floor area of the vacated premises;  (5) relocated their business to such other premises within one year of vacating the vacated premises; and  (6)  paid  all  commercial  rent  or  occupancy  tax  for  the vacated premises.  A subtenant shall be eligible to receive a  relocation  award notwithstanding any lack of eligibility of its prime tenant.  (b)  Amount of relocation award. The relocation award shall not exceed the greater of (1) all the base rent that accrued and was  paid  by  the eligible  tenant during the final twenty-four months of its occupancy of the vacated premises or (2) four dollars for each square foot  that  the eligible  tenant  occupied  in  the  vacated  premises  during the final  twenty-four months of its occupancy of the vacated premises. As used  in this  subdivision,  base  rent shall be calculated in the same manner as base rent is calculated for purposes of commercial rent or occupancy tax in  the  city  of  New York, or in any such city. However, the aggregate award payable to a prime tenant and any subtenants of such prime  tenant shall  not  exceed the amount which would have been payable to the prime tenant had the prime tenant been eligible for  an  award  based  on  the entire  floor  area  it  leased  from  the owner; and if such limitation applies, the awards shall be prorated based upon the  total  floor  area used and occupied by each eligible tenant.  (c)  Payment  of  award.  The  relocation  award  shall become due and payable to an eligible tenant at the time  the  eligible  tenant  either purchases  or  leases  other  premises  in accordance with paragraph (a) above within such city and certifies eligibility to and demands  payment of  the  award from the owner of the vacated building. If the relocation award is not paid within thirty days of such certification  and  demand, interest  shall  accrue  on  the  relocation  award  from  the  date  of certification and demand at the rate of twenty-four percent per annum.  (d) Notice of claim. At any time after such certification  and  demand and  prior to the date of the filing of an application for tax exemption or abatement for the vacated  building  pursuant  to  this  section,  an eligible  tenant  who  has  not received a relocation award shall have a right to file a notice of claim. Such notice of  claim  shall  be  filed with  the  county  clerk  of the county in which the vacated building is located and shall  verify  the  claimant's  name,  its  compliance  with eligibility requirements, the address of the vacated premises, the floor area  it  occupied,  the  name  of the prime tenant if the claimant is a subtenant, and all the base rent  that  accrued  and  was  paid  by  the claimant during the final twenty-four months of its occupancy.  (e)  Discharge of notice of claim. A notice of claim may be discharged by filing an undertaking with the clerk  of  the  county  in  which  the premises  are  located  in  an  amount  equal  to  the amount claimed in accordance with the procedures set forth in subdivision four of  section nineteen  of  the  lien  law, or by payment into court of such amount in accordance with the procedures set forth in section  fifty-five  of  the lien law.  (f)  Affidavit  and  notice  as  a  condition  to tax benefits. No tax exemption or abatement shall be granted pursuant to this section  unless the  local  municipal  agency responsible for administering this section receives an affidavit from the applicant which verifies that:  (1) the applicant has caused to be published a notice in  a  newspaper of  general  circulation within the city, no later than sixty days prior to filing of an application for tax exemption or abatement  pursuant  to this  section,  which  advises  former  tenants  and subtenants of their rights pursuant to any local law or ordinance enacted pursuant  to  this subdivision; and  (2) no notice of claim has been filed or all claims have been released by  the claimant, secured in accordance with the provisions of paragraph (e) of this subdivision, or discharged as an improper claim by  a  court order.  (g) Action on claim. If an eligible tenant or subtenant has duly filed a  notice  of  claim pursuant to this subdivision and does not receive a relocation award as provided herein, it may commence an  action  against any  applicant  who filed a false affidavit pursuant to paragraph (f) of this subdivision within three years  of  such  filing  or  any  security posted  by such applicant pursuant to paragraph (e) of this subdivision. In any action to enforce a claim pursuant to this  subdivision,  if  the court finds that the claimant has wilfully exaggerated the amount of the  claim,  the  claimant may be held liable in damages for an amount not to exceed the proper relocation award. An eligible tenant in whose favor  a judgment is entered shall be entitled to costs and reasonable legal fees and disbursements provided that such judgment is in excess of the amount which the applicant or owner offered to pay the eligible tenant.  (h)  Waiver.  Any  lease provision exempting, releasing or discharging the obligation to pay a relocation award pursuant  to  this  subdivision shall  be  deemed  to  be  void  as  against  public  policy  and wholly unenforceable.  (i) Local zoning resolution. The provisions of  this  subdivision  ten shall  not  apply  if the local zoning resolution expressly provides for relocation  loans  and/or  grants  in  lieu  of  the  benefits  of  this subdivision.   11. Limitations of benefits. (a) Applicability. The provisions of this subdivision apply to all conversions, alterations and improvements under this section. However, they shall not apply to:  (1)  alterations or improvements under subparagraph two, three or four of paragraph (a) of subdivision one of this section, where carried out:  (A) with the substantial assistance of grants, loans or subsidies from any  federal,  state  or  local  agency  or  instrumentality,   or   any not-for-profit  philanthropic organization one of whose primary purposes is providing low or moderate income housing; or  (B) with mortgage insurance by the New York city residential  mortgage insurance corporation or the state of New York mortgage agency; or  (C) in a neighborhood preservation area, as such areas were designated by  the  New  York  city  planning commission as of June first, nineteen hundred eighty-three, provided that such  area  or  part  of  such  area wherein  the property is located has been approved as provided herein by the city council of the city of New York. No such area or  part  thereof shall  be  approved by the city council until notice of the area or part thereof proposed to be approved is submitted to  every  community  board with  jurisdiction  over  the  area  or part thereof, and (i) every such community board has made and submitted to the city council  comments  as to  the  proposed  approval,  or (ii) forty-five days have elapsed since such notice  was  submitted  to  such  community  boards,  whichever  is earlier; and  (D)   pursuant  to  a  program  established  by  the  federal  housing administration, federal national mortgage association, federal home loan mortgage corporation or government national mortgage association for the rehabilitation of existing multiple dwellings  for  persons  of  low  or moderate   income,   or   a   program  of  mortgage  insurance  for  the rehabilitation of existing multiple dwellings pursuant  to  section  two hundred  twenty-three-f  of  the  national  housing act as amended, or a program  of  mortgage  insurance  established  by  the  federal  housing administration for the rehabilitation of existing multiple dwellings for persons  of  low  or moderate income; provided that properties receiving benefits under such programs are  located  in  a  neighborhood  strategy area,  as  defined, by the United States department of housing and urban development, or a neighborhood preservation area,  as  such  areas  were designated  by  the New York city planning commission, as of June first, nineteen hundred eighty-three.  (2) alterations or improvements under subparagraphs five  and  six  of paragraph (a) of subdivision one of this section; or  (2-a)  Conversion  of  buildings  or  structures  to  class A multiple dwellings pursuant to subparagraph one of paragraph (a)  of  subdivision one  of  this  section,  where  such  conversions  are  undertaken  by a not-for-profit philanthropic organization or  undertaken  on  properties which  receive  mortgage  insurance  from  the New York city residential  mortgage insurance corporation, or state of New  York  mortgage  agency, provided   that   such   property  is  (i)  located  in  a  neighborhood preservation area as such areas were designated  by  the  city  planning commission  on  June first, nineteen hundred eighty-three, and (ii) such property  has  been  vacant  since  January  first,   nineteen   hundred eighty-two,  and  (iii)  prior to becoming vacant such property was last utilized  for  governmental,  educational,  hospital  or  nursing   home purposes.  (3)  conversions  of residential units qualified for the protection of article seven-C of the multiple dwelling law under subparagraph  one  of paragraph (a) of subdivision one of this section.  (b)  Abatement  limitations. The amount of abatement under subdivision two of this section shall not exceed the certified  reasonable  cost  of the   conversion,   alteration   or  improvement,  as  determined  under regulations of the local housing agency  administering  the  local  law, provided  that  the  amount  of  certified  reasonable cost eligible for abatement under this section shall not exceed fifteen  thousand  dollars for  a dwelling unit of three and one-half rooms and a comparable amount for dwelling units of  other  sizes,  under  regulations  of  the  local housing  agency,  and  further  provided  that  the  amount of certified reasonable cost eligible for abatement under  this  section  may  exceed fifteen  thousand  dollars  or such comparable amount per dwelling unit, but  not  more  than  twenty-five  percent  above  such   amount,   upon application  of  the  property  owner and a determination by the housing agency that:  (1) in the case of a conversion under subparagraph  one  of  paragraph (a)  of subdivision one of this section, the increased cost is necessary to comply with applicable law; or  (2) in the case of an alteration or improvement under subparagraph two of paragraph (a) of subdivision one of this section, the increased  cost is  necessary  to  eliminate  the  unhealthy  or dangerous conditions or replace the inadequate and obsolete facilities in a satisfactory manner; or  (3) in the case of an alteration  or  improvement  under  subparagraph three of paragraph (a) of subdivision one of this section, the increased cost is necessary to conserve energy in a satisfactory manner; or  (4)  in  the  case  of an alteration or improvement under subparagraph four of paragraph (a) of subdivision one of this section, the  increased cost,  to  the extent such cost is not offset by any and all tax credits received as a result of the alteration or improvement, is  necessary  to comply  with  any  provision  of  law  regulating  historic  or landmark buildings or structures.  (b-1) For the purpose of the abatement limitations  contained  in  the opening  paragraph  of  paragraph (b) of this subdivision, the number of rooms in a dwelling unit shall be calculated in  the  following  manner: Each  dwelling  unit with at least one room which either (1) contains no cooking facilities and measures at least one hundred fifty square  feet, or  (2)  contains  cooking  facilities and measures at least two hundred thirty square feet, shall count as two and one-half rooms.  Every  other room  in the dwelling unit separated by either walls or doors, including bedrooms, shall count as an additional  room,  provided,  however,  that kitchens,  cooking  facilities,  bathrooms, corridors or balconies shall not count as an additional room. To be included, a room  must  meet  the requirements  of  habitability  as  provided  in  the  relevant  housing maintenance code.  (c) Exemption limitations. (1) The increase in assessed  valuation  of the  real  property  located  in  the  borough  of Manhattan south of or adjacent to the south side of one hundred tenth  street  resulting  from  the  conversion,  alteration  or  improvement  under  paragraph  (a)  of subdivision one of this  section,  shall  be  exempt  from  taxation  as provided   in  this  section,  only  to  the  extent  provided  in  this subparagraph.  The  amount  of  the increased assessed valuation that is exempt from taxation shall depend on the amount of  the  total  assessed valuation  per  dwelling  unit  calculated by dividing the amount of the total assessed valuation of  the  property,  as  determined  under  this chapter,  by  the  number  of  dwelling  units  in  the  building  after completion of the conversion, alteration or improvement. The  amount  of increased  assessed  valuation  that  will  be  exempt from taxation for buildings with total assessed valuation per dwelling unit of  less  than thirty-eight  thousand  dollars  shall  be  calculated  pursuant  to the following formula: (A) any portion of total assessed  valuation  of  the property  attributable  to  the first eighteen thousand dollars of total assessed valuation per  dwelling  unit,  to  the  extent  it  represents increased  assessed  valuation, shall be one hundred percent exempt; (B) any portion of total assessed valuation attributable to  the  next  four thousand  dollars  of total assessed valuation per dwelling unit, to the extent it represents increased assessed valuation, shall be seventy-five percent exempt; (C) any portion of total assessed valuation attributable to the next four  thousand  dollars  of  total  assessed  valuation  per dwelling unit, to the extent it represents increased assessed valuation, shall  be  fifty  percent  exempt;  (D)  any  portion  of total assessed valuation attributable to  the  next  four  thousand  dollars  of  total assessed  valuation  per  dwelling  unit,  to  the  extent it represents increased assessed valuation, shall be twenty-five percent  exempt;  (E) any  portion  of total assessed valuation attributable to the next eight thousand dollars of total assessed valuation per dwelling unit,  to  the extent  it  represents  increased  assessed valuation per dwelling unit, shall be fully taxable. Property with a  total  assessed  valuation  per dwelling  unit  of  thirty-eight  thousand  dollars or more shall not be eligible for a tax exemption under this section.  (2) In calculating the amount of  increased  assessed  valuation  that will be exempt from taxation pursuant to the formula in subparagraph one of this paragraph, the full amount of total assessed valuation that does not  represent  increased  assessed  valuation  shall be applied in such formula prior to the inclusion  of  any  amount  of  increased  assessed valuation.  (3)  Where  the  real  property  is  occupied  in part for residential purposes  and  in  part  for  non-residential  purposes,  the   assessed valuation  of  the property shall be appropriately allocated between the residential  and  non-residential  portions.  In  computing  the   total assessed  valuation  per  dwelling  unit  under this paragraph, only the amount of valuation so allocated to the  residential  portion  shall  be considered.  (4)  Commencing with the assessment roll for the year nineteen hundred eighty-four, where there has been a change in the  level  of  assessment from  the  assessment  roll  of  the  prior year of properties receiving exemptions  under  this  section,  the  local  agency  responsible   for assessment of real property may petition the commissioner to certify the percentage  of  such  change  for  the purposes of this section. In such petition,  the  local  agency  shall  submit  such  information  as  the commissioner  shall  require  in order to certify the percentage of such change. The commissioner may also make such a certification on  its  own motion.  Upon  receipt  of such certification from the commissioner, the local housing agency may modify the  dollar  values  of  total  assessed valuation  per  dwelling  unit  in subparagraph one of this paragraph to reflect the percentage change in the level of  assessment  as  shown  in  such  certification.  As  used in this subparagraph, the term "change in the level of assessment" means the  net  increase  or  decrease  in  the assessed  valuation  of  properties  in the assessing unit that received exemptions  under  this section in the current year as compared to those that received exemptions under this section  in  the  prior  year  as  a result  of  assessing such properties at a higher or lower ratio of full value.  (5) (A) Notwithstanding the provisions of  subparagraph  one  of  this paragraph, the local housing agency may reduce or remove the limitations on  the  exemption  from  taxation  provided  in  such subparagraph with respect to a particular property undergoing alteration  or  improvement, upon application of the property owner and a determination by the agency that:  (i)  The  increased benefit will increase the number of dwelling units or improve the quality of dwelling units  that  will  be  affordable  to persons of low or moderate income; and  (ii)  The  increased  benefit is necessary to make economically viable the increase in the number of  dwelling  units  or  improvement  in  the quality  of  dwelling units that will be affordable to persons of low or moderate income.  (B) As used in this subparagraph, the term persons of low or  moderate income shall be persons who would qualify for housing subsidies pursuant to  section  two  hundred  thirty-five  of  the national housing act, as amended, at one hundred thirty-five percent of  the  income  limitations provided herein.  (C)  Upon  receiving  an application under this subparagraph in proper form, the local housing  agency  shall  immediately  submit  it  to  the community board for the area in which the project is located, which may, within  forty-five days of receiving it and after a public hearing, make recommendations to the agency as to the application.  The  agency  shall act  on  the  application  within  sixty  days  of receiving it from the property owner in proper form, but not before expiration of the time for the community board to make its recommendations, unless  the  board  has acted sooner.  (d)  The local housing agency may set forth preliminarily the terms of a determination under paragraph (b) or (c) of this subdivision prior  to the  commencement of the conversion, alteration or improvement. Any such determination shall take effect after completion of the work.  (e)  Publication  of  local   housing   agency   determinations.   Any determination of the local housing agency to increase an abatement under paragraph  (b)  of this subdivision or to reduce or remove the exemption limitations under paragraph (c) of  this  subdivision  shall  state  the basis  for the determination and the data on which the determination was based. Such determination shall be published in the official publication of the city, or if no  such  publication  exists  in  a  newspaper  with general  circulation  in  the  city, for five consecutive days after the determination is rendered.  (f) Proration of assessed valuation. Notwithstanding the provisions of paragraph (b) of subdivision nine of this  section,  the  provisions  of this  paragraph  shall  apply  to  changes in assessments resulting from conversion, alterations or improvements which are  not  subject  to  the abatement  or  exemption  limitations  of paragraphs (b) and (c) of this subdivision. During the period of such exemptions the assessment on  any such   land  and  dwelling  after  such  alterations  and  improvements, exclusive of the increase in valuation which is subject to exemption  in full  or proportionally under subdivision one of this section, shall not exceed the valuation of the previously existing  dwelling  appearing  on the assessment rolls after the taxable status date immediately preceding  the  commencement of such alterations and improvements plus the value of the land, any improvements other than those made under the provisions of this section and the proportion of increased assessed valuation that  is not  exempt  from  taxation  under  this section, which proportion shall remain constant during the term of the exemption. Where  the  alteration or  improvement  qualified  under  subparagraph  two of paragraph (a) of subdivision  two  of  this  section  or  under  clause  (A)  or  (B)  of subparagraph  one  of  paragraph  (a) of this subdivision, the exemption shall also include an exemption from taxation  for  local  purposes  for twelve  years upon that portion of the assessment, if any, which exceeds the transition assessment, as defined  in  subdivision  two  of  section eighteen  hundred  five  of  this  chapter,  in  effect  at  the time of commencement of the exemption hereunder.   12. Harassment. (a) The provisions of this subdivision  apply  to  and are additional requirements for claiming or receiving:  (1) any tax exemption under this section; or  (2)   any  tax  abatement  under  this  section  where  the  certified reasonable cost per dwelling  unit  of  the  conversion,  alteration  or improvement  (including  the  cost  of  any  conversion,  alteration  or improvement for which an abatement was approved within four years  prior to  commencement  of  the conversion, alteration or improvement) exceeds seven thousand five hundred dollars.  (b) The owner of the property shall, not less than thirty days  before the   commencement   of   the   conversion,  alteration  or  improvement (hereinafter referred to as the "cut-off date"),  file  with  the  local housing  agency  administering the local law, an affidavit or, where any information referred to in subparagraph one of  this  paragraph  changes prior  to  applying  for  or claiming any benefit under this section, an amending affidavit, setting forth the following information:  (1) every owner of record and owner of a substantial interest  in  the property  or  entity  owning  the property or sponsoring the conversion, alteration or improvement;  (2) a statement that none of such persons had, within the  five  years prior  to  the  cut-off  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 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; and  (3) any change in the information required to be set forth.  (c)  No  conversion,  alteration  or  improvement  subject   to   this subdivision  shall  be eligible for tax exemption or tax abatement under this section where:  (1) any affidavit required under this subdivision has not been  filed; or  (2)  any  such  affidavit  contains  a  willful  misrepresentation  or omission of any material fact; or  (3) any person referred to in subparagraph one  of  paragraph  (b)  of this  subdivision  has been found to have harassed or unlawfully evicted tenants as described in that paragraph, until and unless the finding  is reversed  on  appeal,  provided  that any such finding after the cut-off date shall not apply to or affect any tax abatement or exemption for the conversion, alteration or improvement covered by the affidavit.  (d) The local housing agency administering  this  law  and  the  local government  agency  responsible  for  real property tax assessment shall maintain a list of affidavits as described  in  paragraph  (b)  of  this subdivision.  Each  agency  shall  review that list with respect to each application or claim for benefits subject to this subdivision.  (e) "Substantial interest" as used in subparagraph  one  of  paragraph (b)  of  this subdivision shall mean ownership of an interest of ten per centum or more  in  the  property  or  entity  owning  the  property  or sponsoring the conversion, alteration or improvement.  (f)  Where  the  conversion,  alteration  or  improvement is commenced before August first, nineteen hundred  eighty-three,  the  cut-off  date shall  be  as  set  forth in this subdivision, but no affidavit shall be required to be filed until thirty days after the effective date of  this subdivision.   13.  Additional  limitation.  The  benefits  of this section shall not apply to any conversion of or alteration or improvement to any  class  B multiple  dwelling or class A multiple dwelling used in whole or in part for single room occupancy, regardless  of  the  status  or  use  of  the building  after  the  conversion,  alteration or improvement unless such conversion,  alteration  or  improvement  is  carried   out   with   the substantial  assistance  of grants, loans or subsidies from any federal, state or local agency or instrumentality.   14. Conversion of properties to residential use. The benefits of  this section shall not apply to any conversion of property to residential use where  the  conversion  was contrary to the applicable zoning resolution and was permitted only by virtue of a variance as  to  use,  unless  the local  law  is  amended  to  explicitly  provide  that benefits shall be available in such cases. The provisions of this subdivision do not apply to conversions of residential units  qualified  for  the  protection  of article  seven-C  of the multiple dwelling law under subparagraph one of paragraph (a) of subdivision one of this section.   15. Authority of city to limit local  law.  Where  a  city  enacts  or amends a local law under this section, the local law may restrict, limit or  condition the eligibility, scope or amount of the benefits under the local law in any manner, provided that  the  local  law  may  not  grant benefits beyond those provided in this section.   16.  Institutional lenders; cost certification. The rules of the local housing agency administering such local  law  or  ordinance  shall  make provision  for  circumstances  in which an institutional mortgage lender (as defined in such rules) which has provided financing for  alterations or improvements to a building or structure and has become a successor in interest  (as  defined  in  such  rules)  to  the original owner of such building  or  structure,  after  diligent  efforts  to  obtain  original contracts,  checks and other records normally reviewed by such agency to verify claimed costs, is unable to obtain part or all of  such  records. Under such circumstances the rules shall permit substitution in whole or in  part,  as  the case may be, of documentation certified by the lender showing the amounts advanced by the lender pursuant to the mortgage loan to finance such alterations  or  improvements,  along  with  such  other documentation as the agency may require.   17.  (a)  For  purposes of this subdivision, "substantial governmental assistance" shall mean:  (i) grants, loans or subsidies from any federal, state or local agency or instrumentality in furtherance of a program for  the  development  of affordable  housing  approved  by  the  local housing agency, including, without limitation, financing or insurance provided by the state of  New York mortgage agency of the New York city residential mortgage insurance corporation; or  (ii)   a   written   agreement  between  a  housing  development  fund corporation and the local housing agency limiting the incomes of persons entitled to purchase shares or rent housing accommodations therein.  (b) Any local law or ordinance providing for benefits pursuant to this section must also provide the following  with  respect  to  conversions,  alterations or improvements completed on or after December thirty-first, two thousand eleven:  (i)  except  as  otherwise  provided  in  this section with respect to multiple dwellings, buildings and structures owned and  operated  either by  limited-profit housing companies established pursuant to article two of  the  private  housing  finance  law   or   redevelopment   companies established pursuant to article five of the private housing finance law, or with respect to a group of multiple dwellings that was developed as a planned  community  and  that  is  owned  as  two  separate condominiums containing a total of ten thousand or more dwelling units, any  multiple dwelling,  building  or  structure  that  is owned as a cooperative or a condominium that has an average assessed value per  dwelling  unit  that exceeds  the  assessed valuation limitation as provided in paragraph (c) of this subdivision shall only be eligible  for  such  benefits  if  the alterations  or  improvements for which such multiple dwelling, building or structure has applied for the benefits pursuant to this section  were carried out with substantial governmental assistance; and  (ii)  no  benefits  pursuant  to this section shall be granted for the conversion of any non-residential building or structure into a  class  A multiple   dwelling   unless   such  conversion  was  carried  out  with substantial governmental assistance.  (c) Assessed value limitation. (i) For final assessment  rolls  to  be completed prior to two thousand seventeen, the assessed value limitation shall be thirty thousand dollars.  (ii)  For  the  final  assessment roll to be completed in two thousand seventeen the assessed value limitation  shall  be  thirty-two  thousand dollars  increased  by  the  cost-of-living adjustment percentage of two thousand  seventeen.  For  the  purposes  of   this   computation,   the cost-of-living  adjustment percentage of two thousand seventeen shall be equal to the "applicable increase percentage" used by the United  States commissioner of social security to determine the monthly social security benefits  payable  in two thousand seventeen to individuals, as provided by subsection (i) of section four hundred fifteen of title forty-two  of the United States code.  (iii) For final assessment rolls to be completed in each ensuing year, the  applicable  assessed  value  limitation,  cost-of-living adjustment percentage and applicable increase percentage shall all be  advanced  by one  year, and the assessed valuation limitation shall be the previously applicable assessed value limitation increased by the new cost-of-living adjustment percentage. If there should be a year for which there  is  no applicable  increase  percentage  due  to  a general benefit increase as defined by subdivision three of subsection (i) of section  four  hundred fifteen  of  title  forty-two  of the United States code, the applicable increase percentage for purposes of this computation shall be deemed  to be  the  percentage  which  would  have  yielded  that  general  benefit increase.  (iv) Notwithstanding anything to the contrary  contained  herein,  the assessed  value  limitation  shall not at any time exceed forty thousand dollars.   18. Any local law or ordinance providing for benefits pursuant to this section must also provide, with respect to conversions,  alterations  or improvements  for which application was made after the effective date of this subdivision, that if such conversions, alterations or  improvements are  not  completed  on  the  date  upon which such local housing agency inspects the items of  work  claimed  in  such  application,  the  local housing  agency  shall require the applicant to pay two times the actual cost for any additional inspections needed to verify the  completion  of such conversion, alteration or improvement.    19.  The  revocation  of  benefits  granted  to any multiple dwelling, building or structure pursuant to this  section  shall  not  exempt  any dwelling unit therein from continued compliance with the requirements of this  section  or  of  any local law or ordinance providing for benefits pursuant to this section.   20.  Notwithstanding  the  provisions of any general, special or local law or any local ordinance  providing  for  benefits  pursuant  to  this section  the  department may require that the applications for exemption or abatement under this section that  are  filed  on  or  after  a  date specified in such local law or ordinance be filed electronically.