2023 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.