NY Real Prop Tax L § 489-CCCCCC (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2-F - Abatement of Tax Payments for Certain Industrial and Commercial Properties in a City of One Million or More Persons 489-CCCCCC - Eligibility for Benefits.

§  489-cccccc.  Eligibility  for  benefits.  1. Time limit for meeting minimum required  expenditure.  Applicants  must  meet  the  appropriate minimum required expenditure as provided in subdivision three of section four  hundred eighty-nine-bbbbbb of this title relating to the abatement for which such project qualifies as follows:  (a) No later than four years from the date of issuance  of  the  first building  permit,  or  if  no  permit  was required, the commencement of construction.  (b) Mixed use properties. Expenditures for construction  work  related to  the  common  areas  and  systems of such property shall be allocated under rules promulgated  by  the  department  between  the  residential, nonresidential and retail, if any, portions of the property.   2.   Time  limit  for  completion  of  construction.  Construction  of buildings or structures for which benefits have been approved  shall  be completed  no  later  than  five  years from the date of issuance of the first building permit, or if no permit was required, the commencement of construction.    Failure  to  meet  this  requirement  shall  result  in termination of any inflation protection provided under subdivision three of  section  four  hundred  eighty-nine-bbbbbb of this title for any tax year that begins following the date by which completion of  construction is required under this paragraph.   3. Non-permissible uses. To be eligible for benefits, the property may not  be  used  for  a non-permissible purpose. Accordingly, no abatement benefits under this title shall be granted for work to be  performed  on property to be used for the following purposes:  (a)  Residential.  No  abatement  benefits  under  this title shall be granted for construction work for residential purposes, or for work on a structure or building where twenty percent or more of the total rentable square footage of such property is or will be dedicated  to  residential purposes,  provided  however  that  where  less  than  five percent of a property's  rentable  square  footage  is  or  will  be   dedicated   to residential  purposes, that use shall be considered de minimus and shall not be considered in determining benefits under this title.  (i) For purposes of this paragraph, "property" means the real property contained by an individual tax lot.  (ii) Notwithstanding subparagraph  (i)  of  this  paragraph,  where  a building  or  structure is owned in condominium form, and an application for benefits under this title includes more than  one  property  in  the same  condominium, then for purposes of this paragraph, the five percent and twenty percent of the rentable square footage  shall  be  determined based on the aggregate usage of all such properties.  (iii)  Hotel  uses,  as described in subdivision four of this section, shall not be considered residential.  (b) Utility property. No abatement benefits under this title shall  be provided for utility property.  (c)  Restricted  activity. No benefits pursuant to this title shall be granted for construction work on property any part of  which  is  to  be used for a restricted activity.  (d) Self-storage facilities. For purposes of this title, "self-storage facility"  shall  mean  any  real  property or a portion thereof that is designed and  used  for  the  purpose  of  occupying  storage  space  by occupants  who are to have access thereto for the purpose of storing and removing personal property, pursuant to subdivision one of  section  one hundred  eighty-two  of  the  lien  law.  No  benefits  shall be granted pursuant to this title for construction work on real property where  any portion of such property is to be used as a self-storage facility.   4. Hotel uses. Benefits shall be available for commercial construction work  or renovation construction work on a building or structure for the  property's square footage used to provide lodging and  support  services for   transient   guests,   provided  the  applicant  is  not  otherwise disqualified pursuant to paragraph  (c)  of  subdivision  five  of  this section,  or  section  four  hundred  eighty-nine-eeeeee or four hundred eighty-nine-iiiiii of this title.   5. Filing requirements. (a) Time to file. (i) Preliminary application. (A) Building permit. No benefits pursuant to this title shall be granted for any construction work  unless  the  applicant  filed  a  preliminary application  for  such benefits on or before the date of issuance of the first building permit for such work. This requirement may  be  satisfied where  the  applicant's  architect,  contractor  or other representative authorized to file the application for such building permit  files  with the  department  on  behalf  of  the applicant a preliminary application containing such information as the department shall prescribe by rule.  (B) No building permit required.  Where  construction  work  does  not require  a  building  permit,  a  notarized  letter  from  the project's architect or engineer notifying the department of  this  fact  shall  be filed  within  thirty calendar days of the commencement of construction. In such circumstance, such letter shall also satisfy the requirement  of a  preliminary application if the letter contains all of the information required for a preliminary application under  rules  prescribed  by  the department.  (ii)  Final application. Applicants shall file a final application for benefits no later than one year from the date of issuance of  the  first building  permit for construction work, or, where construction work does not require a building permit, no later than one year from the  date  of commencement  of  construction.  Abatement benefits shall not be granted until  the  applicant  files  the  final  application.  If   the   final application is not filed within such one year period, abatement benefits shall not be granted until such application is filed, and the department may delay the granting of such benefits, at the department's discretion, to investigate the reason for the late filing.  (iii)  Notwithstanding  any provision of law to the contrary, the time limit  to  file  a  final  application  for  benefits  as  specified  in subparagraph  (ii)  of  this  paragraph  shall  not  apply  to brand-new construction from the ground up located on property purchased  from  the city  of  New  York  where  such  property  which is the site of the new construction was purchased from the city of New York for the purposes of an eligible development pursuant to this article  and  where  the  sales agreement  with  the  city  of  New  York  for  such property includes a restriction preventing the sale or  transfer  of  such  property  for  a period  of  five  years  or  more  and  where  the  first  valuation and assessment for the purposes  of  property  taxes  occurred  within  that period  of  restriction  from sale, provided the project meets the other requirements of this title.  (b) Who may file for benefits. An applicant shall be:  (i) obligated to pay real property tax  on  the  property,  either  by virtue of ownership or contract; or  (ii)  the  record owner or lessee of property that is exempt from real property taxation who has entered into an agreement  to  sell  or  lease such  property to another person. Such applicant shall be a co-applicant with such owner or lessee.  (c) Applicant affidavit. No benefits pursuant to this title  shall  be granted  for  any  construction  work  unless  the  applicant  provides, together with the final application,  an  affidavit  setting  forth  the following information:  (i)  a statement that within the seven years immediately preceding the date of the preliminary application for benefits, neither the applicant,  nor any person owning a substantial interest in the property as  defined in  subparagraph  (iii)  of this paragraph, nor any officer, director or general partner of the applicant or such person was finally  adjudicated by  a  court  of  competent  jurisdiction  to  have violated section two hundred thirty-five of the real property law or any section  of  article one  hundred  fifty of the penal law or any similar arson law of another state with  respect  to  any  building,  or  finally  adjudicated  by  a competent  authority,  agency,  or  a court of competent jurisdiction to have violated any state, city,  or  municipal  business  regulations  or ordinances  related to payment of taxes, payment of wages, or fraudulent representation to governmental entities, or was an officer, director  or general  partner  of  a  person  at  the  time  such  person was finally adjudicated to have  violated  such  state,  city,  or  municipal  laws, business  regulations,  and  ordinances  related  to  payment  of taxes, payment of wages, or fraudulent representation to governmental entities; and  (ii) a statement setting forth any pending charges alleging  violation of  section  two  hundred  thirty-five  of  the real property law or any section of article one hundred fifty of the penal  law  or  any  similar arson  law  of  another  jurisdiction  with  respect to any building and pending charges alleging violation of state, city, or municipal business regulations or ordinances related to payment of taxes, payment of wages, or fraudulent representation to governmental entities by  the  applicant or  any  person owning a substantial interest in the property as defined in subparagraph (iii) of this paragraph, or  any  officer,  director  or general partner of the applicant or such person.  (iii)  "Substantial  interest"  as used in this subdivision shall mean ownership and control of an  interest  of  ten  percent  or  more  in  a property or any person owning a property.  (iv) If any person described in the statement required by subparagraph (ii)  of  this  paragraph is finally adjudicated by a court of competent jurisdiction to be guilty of any charge listed in  such  statement,  the recipient shall cease to be eligible for benefits pursuant to this title and shall pay with interest any taxes for which an abatement was claimed pursuant to this title.   6.  Requirement  to  file  income  and expense statements. No benefits pursuant to this title shall be granted for any property in a city  that requires  income and expense statements to be filed for income producing property, unless  income  and  expense  statements  are  filed  for  the property  with  respect  to the tax year as to which the assessment roll described in paragraph (b) of subdivision two of  section  four  hundred eighty-nine-bbbbbb  of  this title applies, and all subsequent tax years up to and including the tax year on which the assessment roll  described in   paragraph   (c)   of   subdivision  two  of  section  four  hundred eighty-nine-bbbbbb of this title applies.   7. Co-application with public entity. A  co-applicant  with  a  public entity  may  be  eligible  for abatement benefits, provided that for any period for which the property is exempt from real property  tax  because it  is  owned  or  controlled  by  a public entity, no benefits shall be available to such recipient under this title. Such recipient may receive benefits under this title when the property is no longer eligible for an exemption as follows: (a) No benefits under this title shall be provided during the period of exemption; (b) during such period of exemption, the years of the benefit  period  applicable  to  the  project  provided  in subdivision  three  of  section  four hundred eighty-nine-bbbbbb of this title shall not  be  tolled,  but  shall  run  in  accordance  with  the applicable  schedule  provided  therein;  and  (c)  the recipient shall, starting with the date the exemption ceases, and  continuing  until  the  abatement  benefit  period  expires,  receive  the abatement benefits to which such recipient is entitled in the tax year that corresponds to the year of the benefit period provided in subdivision three of section four hundred eighty-nine-bbbbbb of this title.