NY Real Prop Tax L § 488-A (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 488-A - Rehabilitation of Certain Class B Multiple Dwellings and Class a Multiple Dwellings Used for Single Room Occupancy.

§  488-a.  Rehabilitation  of  certain  class B multiple dwellings and class  A  multiple  dwellings  used  for  single  room   occupancy.   1. Definitions.  For the purposes of this section the following terms shall have the meaning specified in this subdivision:   a. "Eligible real property" shall mean:  (i) any class B multiple dwelling;  (ii) any class A multiple dwelling  used  for  single  room  occupancy pursuant to section two hundred forty-eight of the multiple dwelling law which  contains  no more than twenty-five percent class A dwelling units which contain lawful sanitary and kitchen facilities within the dwelling unit, provided that in the case of a multiple  dwelling  containing  ten dwelling units or less, up to forty percent of the dwelling units may be class A units.   Notwithstanding  the  foregoing,  eligible  real  property  shall  not include college and school dormitories, club houses, or residences whose occupancy is restricted to an institutional use such as housing intended for use primarily or exclusively by the employees of a single company or institution. A  building  is  an  eligible  real  property  only  if  it qualifies  as  such  after  completion of the eligible improvements, but need not have been an eligible  real  property  prior  to  the  eligible improvements.  (iii) not-for-profit institutions with sleeping accommodations.   b.   "Eligible   improvements"  shall  be  limited  to  the  following catogories of  work,  provided  further  that  such  work  shall  be  in conformity with all applicable laws:  (i) replacement of a boiler or burner or installation of an entire new heating system;  (ii) replacement or upgrading of electrical system;  (iii) replacement or upgrading of elevators;  (iv)  installation or replacement or upgrading of the plumbing system, including water main and risers;  (v) replacement or installation of walls,  ceilings,  floors  or  trim where necessary;  (vi)  replacement  or  upgrading  of  doors,  installation of security devices and systems;  (vii) installation, replacement or upgrading of smoke detectors,  fire alarms, fire escapes, or sprinkler systems;  (viii) replacement or repair of roof, leaders and gutters;  (ix) replacement or installation of bathroom facilities;  (x) installation of wall and pipe insulation;  (xi) replacement or upgrading of street connections for water or sewer services;  (xii)  replacement  or  installation  of  windows,  or installation of window gates or guards;  (xiii) installation or replacement of boiler smoke stack;  (xiv) pointing, waterproofing and cleaning of entire building exterior surface;  (xv) improvements designed to conserve the use of fuel, electricity or other energy sources;  (xvi) improvements unique to congregate living facilities, as  defined by  rules  and  regulations  promulgated  by  the  local housing agency, pursuant to subdivision seven of this section; and  (xvii) work necessary to effect compliance with  all  applicable  laws including  but  not  limited  to the multiple dwelling law, the New York city housing maintenance code and the New York city building code.   c. "Local housing agency". Local housing agency shall  have  the  same meaning  as  the  term  "agency"  under  section five hundred two of the general municipal law, except that in cities  of  over  one  million  in  population  the  term  shall mean the department of housing preservation and development.   d.  "Permanent  resident".  Permanent resident shall mean a person who has resided in eligible real property for six  months  or  more,  has  a lease  with  a  term  of  six  or  more months, or has requested a lease pursuant to the provisions of the rent stabilization  code  for  housing accommodations located in hotels.   2.  Local  legislative action. 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 adopt and amend local laws or ordinances up to and including December thirty-first,  two thousand nineteen, to provide that any increase in assessed valuation of eligible  real property shall be exempt from taxation for local purposes and to provide for the abatement of taxes  on  eligible  real  property, including the land, in accordance with this section.   3.  Tax exemption. Any increase in assessed valuation of eligible real property resulting from  eligible  improvements  shall  be  exempt  from taxation  for  local purposes for a period of thirty-two years, provided that:  (i) the eligible improvements are commenced after July first, nineteen hundred  eighty,  but  prior  to  December  thirty-first,  two  thousand nineteen, and are completed within thirty-six months of commencement;  (ii)  the  eligible  improvements  are  approved  by the local housing agency with respect to their  cost  and  their  qualifications  for  the benefits of this section;  (iii)  the  exemption  may  commence  no  sooner  than  the July first following the filing with the local agency responsible for real property tax assessment of a certification of eligibility  issued  by  the  local housing  agency  for  such  exemption;  provided,  however,  that if the rehabilitation is carried out with substantial government assistance  as part  of a program for affordable housing, the exemption may commence no sooner than the July first following the commencement of construction of eligible improvements;  (iv) immediately  prior  to,  and  during,  the  construction  of  the eligible  improvements,  fifty  or more percent of the dwelling units in such  eligible  real  property  are  occupied  by  permanent  residents; provided  that  such  occupancy requirement shall not apply to a vacant, governmentally owned,  multiple  dwelling,  nor  to  a  privately  owned multiple  dwelling  which  had  been  vacant for not less than two years prior to the commencement of construction of eligible improvements,  nor to  a  vacant  multiple  dwelling  where  the  eligible improvements 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  philantropic  organization  one  of  whose  primary purposes is providing low or moderate income housing;  (v)  there  shall be no outstanding real estate taxes, water and sewer charges, payments in lieu of taxes or other municipal  charges  due  and owing  as  of  the tax quarter prior to commencement of tax exemption to this section;  (vi) except in the case of eligible real property which  is  receiving or  has  received  assistance  pursuant  to  a governmental rent subsidy program, or which is owned by  a  not-for-profit  corporation  or  by  a wholly  owned  subsidiary  of  a not-for-profit corporation and which is receiving or has received assistance pursuant  to  a  governmental  loan subsidy  program, as defined by the rules and regulations promulgated by the local housing agency, pursuant to subdivision seven of this section, for the construction of eligible improvements, the initial  rent,  after completion  of  eligible  improvements,  for ninety percent of the total  number of dwelling units occupied by permanent residents in a class A or class B multiple dwelling other than apartments  shall  not  exceed  the greater  of  either  the  amount  of  any governmental rental assistance received  by  an  occupant  or seventy-five percent of the rent which is permitted  to  be  charged  for  zero-bedroom  units  on  the   moderate rehabilitation  fair  market  rent  schedule as determined by the United States department of housing  and  urban  development  for  the  housing assistance  payments program under section eight of the national housing act;  (vii) no person who lives in  the  eligible  real  property  shall  be required  by  the owner to vacate the eligible real property in order to perform the eligible improvements or any related work.   4. Tax abatement. Eligible real property which qualifies for exemption from taxation for local purposes for eligible improvements shall also be eligible for an abatement of real property taxes in an amount no greater than twelve and one-half percent of  the  reasonable  cost  of  eligible improvements  certified by the local housing agency, which abatement may commence on the first day of the first tax quarter following the  filing with  the local agency responsible for real property tax assessment of a certification of eligibility issued by the local housing agency for such abatement; provided, however that if the rehabilitation is  carried  out with  substantial  government  assistance  as  part  of  a  program  for affordable housing the abatement may commence no sooner than  the  first day  of the first tax quarter following the commencement of construction of eligible improvements, provided that:  (i) the  annual  abatement  shall  not  exceed  the  amount  of  taxes otherwise payable in the corresponding tax year;  (ii)  the  period  during  which such abatement is effective shall not exceed twenty consecutive years  from  the  date  such  abatement  first becomes effective; and  (iii)  the  total abatement shall not exceed the lesser of one hundred fifty percent of the certified reasonable costs of eligible improvements or the actual costs as determined by the local housing  agency  pursuant to its rules and regulations.   5.  Continuing  requirements.  During  the  period of tax exemption or abatement pursuant to this section, exemption  and  abatement  shall  be conditional upon continuing compliance with the following requirements:  (i)  compliance  with  all applicable provisions of law, including but not limited to the multiple dwelling law, the local  building  code  and the local housing maintenance code;  (ii) all dwelling units, except owner occupied units, shall be subject to the emergency housing rent control law or the local emergency housing rent  control  act,  or  the emergency tenant protection act of nineteen seventy-four, or any local laws enacted pursuant thereto,  or  the  rent stabilization law of nineteen hundred sixty-nine; provided, however that the  department  of housing preservation and development may exempt from this requirement dwelling units  that  are  not  occupied  by  permanent residents in those buildings owned by a not-for-profit corporation or by a  wholly owned subsidiary of a not-for-profit corporation and which are improved with the aid of a rehabilitation  loan  from  any  governmental agency  or  instrumentality  or  operated  pursuant to a contract with a governmental entity;  (iii) it  shall  not  receive  tax  exemption  or  tax  abatement  for rehabilitation or new construction under any other provision of law; and  (iv)  the eligible improvements shall not be used as the basis for any application for rent increases and the owner shall file a  statement  to such  effect  with the local housing agency and with any applicable rent agency, provided, however, that rents of units improved with the aid  of  a  rehabilitation  loan  from any governmental agency or instrumentality may within the limitations established  by  this  section  be  increased pursuant to the rules and regulations of the local housing agency; and  (v)  a  minimum of seventy-five percent of the dwelling units shall be rental units occupied by permanent residents,  provided,  however,  that the  local  housing  agency  may  exempt  from  this  requirement  those buildings improved with the  aid  of  a  rehabilitation  loan  from  any government  agency or instrumentality or operated pursuant to a contract with a governmental entity.   6. Revocation. The benefits of this section may be revoked or  reduced upon a finding by the local housing agency or local finance agency that:  (i) the application for benefits hereunder or the annual certification required hereunder contains a false statement or false information as to a material matter or omits a material matter;  (ii)  real  estate taxes, water and sewer charges, payments in lieu of taxes or other municipal charges are due and owing  for  more  than  one year; or  (iii)  the  eligible real property fails to comply with one or more of the provisions or requirements of this section.   7. Rules and regulations. The local  agencies  of  government  charged with  the  administration  of  this  section  may  promulgate  rules and regulations to carry out the provisions of this section.   8. Annual  certification.  During  the  period  of  tax  exemption  or abatement  pursuant  to  this  section, the owner shall submit an annual certification to the local housing agency in a form to be prescribed  by such  agency.    Failure  to  submit  such  certification  may result in revocation of benefits. Such certification shall include the following:  (i) the total number  of  dwelling  units  within  the  eligible  real property  and  the  number  of  dwelling  units  occupied  by  permanent residents;  (ii) the number of dwelling units subject to  the  provisions  of  the emergency  housing rent control act, the emergency tenant protection act of nineteen seventy-four or any local laws enacted pursuant thereto, the emergency housing rent control law or  the  rent  stabilization  law  of nineteen hundred sixty-nine; and  (iii) all such other information required by the local housing agency.