2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 4 - Tax Abatement for Certain Commercial Properties in a City of One Million or More Persons › 499-C - Eligibility Requirements.

§  499-c.  Eligibility  requirements. 1. No abatement shall be granted
pursuant to this title unless:
(a) the landlord enters into a lease for eligible premises with a  new
tenant or a renewal tenant and:
(1) the lease commencement date is within the eligibility period;
(2)  (i) if, by the sixtieth day following the rent commencement date,
such new or renewal tenant employs  one  hundred  twenty-five  or  fewer
employees  in  the  eligible  premises,  the initial lease term is for a
period of at least five years or, with respect to a lease commencing  on
or  after  April first, nineteen hundred ninety-seven, the initial lease
term is for a period of at  least  three  years;  or  (ii)  if,  by  the
sixtieth  day  following the rent commencement date, such new or renewal
tenant employs more  than  one  hundred  twenty-five  employees  in  the
eligible  premises,  the  initial lease term is for a period of at least
ten years; and
(3) (i) if the lease is with a new tenant required  to  sign  a  lease
with  an  initial  lease  term  of  at least five years, expenditures on
improvements to the eligible  premises  and  the  common  areas  of  the
eligible  building  are  in  an amount at least equal to ten dollars per
square foot, provided, however, that with respect to a lease  commencing
on  or  after  April  first,  nineteen  hundred ninety-seven, if, by the
sixtieth day following  the  rent  commencement  date,  the  new  tenant
employs  one  hundred  twenty-five  or  fewer  employees in the eligible
premises, expenditures on improvements to the eligible premises and  the
common areas of the eligible building are in an amount at least equal to
five  dollars per square foot; or (ii) if the lease is with a new tenant
required to sign a lease with an initial lease  term  of  at  least  ten
years,  expenditures  on  improvements  to the eligible premises and the
common areas of the eligible building are in an amount at least equal to
thirty-five dollars per square foot; or (iii) if the  lease  is  with  a
renewal  tenant,  expenditures  on improvements to the eligible premises
and the common areas of the eligible building are in an amount at  least
equal  to  ten  dollars  per  square  foot  for  any premises previously
occupied by such renewal tenant, provided, however, that with respect to
a  lease  commencing  on  or  after  April   first,   nineteen   hundred
ninety-seven,  if,  by  the sixtieth day following the rent commencement
date, the renewal  tenant  employs  one  hundred  twenty-five  or  fewer
employees  in  the eligible premises previously occupied by such renewal
tenant, expenditures on improvements to the eligible  premises  and  the
common areas of the eligible building are in an amount at least equal to
five  dollars  per  square  foot; and in an amount at least equal to the
amount specified in clause (i) or (ii) of this  subparagraph,  depending
upon  the  required  initial lease term, for any premises not previously
occupied by such renewal tenant; or
(b) the landlord enters into a lease  with  an  expansion  tenant  for
expansion premises and:
(1) the lease commencement date is within the eligibility period;
(2)  (i) if, by the sixtieth day following the rent commencement date,
such expansion tenant employs one hundred twenty-five or fewer employees
in the expansion premises, the initial  lease  term  for  the  expansion
premises  is  for  a period of at least five years or, with respect to a
lease commencing on or after April first, nineteen hundred ninety-seven,
the initial lease term is for a period of at least three years; or  (ii)
if,  by  the  sixtieth  day  following  the rent commencement date, such
expansion tenant employs more than one hundred twenty-five employees  in
such  expansion  premises,  the  initial  lease  term  for the expansion
premises is for a period of at least ten years; and
(3) (i) if the lease is with an expansion tenant required  to  sign  a
lease with an initial lease term of at least five years, expenditures on
improvements  to  the  expansion  premises  and  the common areas of the
eligible building are in an amount at least equal  to  ten  dollars  per
square  foot, provided, however, that with respect to a lease commencing
on or after April first,  nineteen  hundred  ninety-seven,  if,  by  the
sixtieth  day following the rent commencement date, the expansion tenant
employs one hundred twenty-five or  fewer  employees  in  the  expansion
premises, expenditures on improvements to the expansion premises and the
common areas of the eligible building are in an amount at least equal to
five  dollars per square foot; or (ii) if the lease is with an expansion
tenant required to sign a lease with an initial lease term of  at  least
ten  years,  expenditures  on improvements to the expansion premises and
the common areas of the eligible building are  in  an  amount  at  least
equal to thirty-five dollars per square foot.
2.  No  abatement  shall  be  granted  pursuant  to  this  title if an
applicant shall fail to meet any  of  the  requirements  of  this  title
within  sixty  days  of  the rent commencement date; provided that for a
lease with a renewal tenant, the expenditures on  improvements  required
by  subdivision one of this section shall be made within one year of the
lease commencement date.
3. (a) For purposes of determining whether the amount of  expenditures
required  by  subdivision  one  of  this  section  have  been satisfied,
expenditures on improvements to the common areas of an eligible building
shall be included only if work on such improvements  commenced  and  the
expenditures  are  made  on  or  after  April  first,  nineteen  hundred
ninety-five  and  on  or  before  September  thirtieth,   two   thousand
twenty-eight;  provided,  however,  that expenditures on improvements to
the common areas of an eligible  building  made  prior  to  three  years
before the lease commencement date shall not be included.
(b)  The  landlord  may  allocate  expenditures on improvements to the
common areas of an eligible building to eligible tenants in such  manner
as reasonably relates to such eligible tenants.
4. For purposes of this title, the expiration date of a lease shall be
determined  by  the  expiration  date  set  forth in such lease, without
giving effect to any rights of the landlord or the tenant  to  terminate
such lease prior to the expiration date set forth therein.
5.  The  lease  for  the eligible premises shall contain the following
provisions:
(a) a statement of the tenant's percentage share;
(b) a statement informing the tenant in  at  least  twelve-point  type
that:
(1)  an  application  for abatement of real property taxes pursuant to
this title will be made for the premises;
(2) the rent,  including  amounts  payable  by  the  tenant  for  real
property  taxes,  will accurately reflect any abatement of real property
taxes granted pursuant to this title for the premises;
(3) at least ten dollars per square foot or  thirty-five  dollars  per
square foot must be spent on improvements to the premises and the common
areas,  the  amount  being  dependent  upon  the length of the lease and
whether it is a new or a renewal lease,  provided,  however,  that  with
respect  to a lease commencing on or after April first, nineteen hundred
ninety-seven, if, by the sixtieth day following  the  rent  commencement
date,  the  tenant employs one hundred twenty-five or fewer employees in
the relevant premises, at least five dollars per  square  foot  must  be
spent on improvements to the premises and the common areas; and
(4) all abatements granted with respect to a building pursuant to this
title  will  be revoked if, during the benefit period, real estate taxes

or water or sewer charges or other lienable charges are unpaid for  more
than  one  year,  unless such delinquent amounts are paid as provided in
subdivision four of section four hundred ninety-nine-f of this title.
6. No abatement shall be granted pursuant to this title if:
(a)  a  tenant has relocated from any area of the borough of Manhattan
north of the center line of 96th Street  or  from  any  portion  of  the
boroughs of the Bronx, Brooklyn, Queens, or Staten Island;
(b)  the  lease  for  the  eligible  premises provides that during the
initial lease term required by subdivision one of  this  section  either
the  landlord  or  the  tenant  may  terminate  such  lease prior to the
expiration date of such required initial lease term; provided that  such
lease  may  provide that either the landlord or the tenant may terminate
such lease if (1) the other party is in default of any of  such  party's
obligations  under  the  lease, (2) the eligible premises are damaged or
destroyed by fire or other  casualty,  (3)  the  eligible  premises  are
rendered  unusable for any reason not attributable to any act or failure
to act of either tenant or landlord, or (4) the  eligible  premises  are
acquired by eminent domain; and
(c)  there  are  real  property taxes, water or sewer charges or other
lienable charges currently due and owing on the eligible building  which
is  the  subject of an application for abatement pursuant to this title,
unless such real property taxes or charges are currently being  paid  in
timely  installments pursuant to a written agreement with the department
of finance or other appropriate agency.
7. No abatement shall be granted pursuant to  this  title  unless  the
applicant  shall  file,  together  with  the  application,  an affidavit
setting forth the following information:
(a) a statement that within the seven years immediately preceding  the
date  of  application  for  a  certificate  of  abatement,  neither  the
applicant nor any person owning a substantial interest in  the  eligible
building  as  defined  in  paragraph  (c)  of  this subdivision, 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 jurisdiction with respect to any building,  or  was
an  officer,  director  or  general partner of a person at the time such
person was finally adjudicated to have violated such law; and
(b) 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 by the
applicant or any person owning a substantial interest  in  the  eligible
building  as  defined  in  paragraph  (c)  of  this  subdivision, or any
officer, director or general partner of the applicant or such person, or
any person for  whom  the  applicant  or  person  owning  a  substantial
interest  in  the  eligible  building is an officer, director or general
partner.
(c) for purposes of this subdivision and subdivision seven of  section
four  hundred  ninety-nine-f of this title, "substantial interest" shall
mean ownership and control of an interest of ten per centum or  more  in
the eligible building or in any person owning the eligible building.