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

§  499-cc.  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; or (iii) with respect to a lease  for  eligible  premises  as
defined  in  subparagraph  (ii)  of  paragraph  (b)  or paragraph (c) of
subdivision ten of section four hundred  ninety-nine-aa  of  this  title
commencing  on or after July first, two thousand five, the initial lease
term is for a period of at least three 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 five 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
two  dollars  and  fifty  cents 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 twenty-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  five  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 two dollars and fifty cents 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  (iv)  if  the  lease  is  with a new tenant for eligible premises as
defined in subparagraph (ii)  of  paragraph  (b)  or  paragraph  (c)  of
subdivision  ten  of  section four hundred ninety-nine-aa of this title,
expenditures on improvements to the eligible  premises  and  the  common
areas  of  the  eligible building are in an amount at least equal to two
dollars and fifty cents per square foot; or (v) if the lease is  with  a
renewal  tenant for eligible premises as defined in subparagraph (ii) of
paragraph (b) or paragraph  (c)  of  subdivision  ten  of  section  four
hundred  ninety-nine-aa  of this title, expenditures on improvements are
in an amount at least equal to five dollars  per  square  foot  for  any

premises previously occupied by such renewal tenant, and in an amount at
least  equal  to  two  dollars  and  fifty cents per square foot 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; or (iii) with respect to
a  lease  commencing  on  or  after  July  first,  two thousand five for
eligible premises as defined in subparagraph (ii) of  paragraph  (b)  or
paragraph  (c) of subdivision ten of section four hundred ninety-nine-aa
of this title, the initial lease term is for a period of at least  three
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 five 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
two dollars and fifty cents 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 twenty-five dollars per square foot;  or  if
the  lease  is with an expansion tenant for eligible premises as defined
in subparagraph (ii) of paragraph (b) or paragraph  (c)  of  subdivision
ten  of  section four hundred ninety-nine-aa of this title, expenditures
on improvements to the expansion premises and the common  areas  of  the
eligible  building  are  in  an amount at least equal to two dollars and
fifty cents 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) (i) With respect to the abatement zone defined in paragraph (a)
of  subdivision two of section four hundred ninety-nine-aa of this title
and 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  one;
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.
(ii) With respect to the eligible premises defined in subparagraph (i)
of   paragraph   (b)   of   subdivision  ten  of  section  four  hundred
ninety-nine-aa of this title and 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 July first, two
thousand and on or  before  December  thirty-first,  two  thousand  ten;
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.
(iii) With respect to the eligible premises  defined  in  subparagraph
(ii)  of  paragraph  (b)  or paragraph (c) of subdivision ten of section
four  hundred  ninety-nine-aa  of  this  title  and  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
July  first,  two  thousand five and on or before December thirty-first,
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  certifying  the  percentage  of  eligible  premises
occupied or used for industrial and manufacturing activities, as defined
in subdivision fourteen-a of section four hundred ninety-nine-aa of this
title, and the percentage of eligible  premises  occupied  or  used  for
ancillary  purposes  where the lease is for eligible premises defined in
subparagraph (ii) of paragraph (b) or paragraph (c) of  subdivision  ten
of section four hundred ninety-nine-aa of this title;
(c)  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 five dollars per square foot or twenty-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 two dollars and fifty cents 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-ff of this title;
and
(5) all benefits granted with respect to eligible premises as  defined
in  subparagraph  (ii)  of paragraph (b) or paragraph (c) of subdivision
ten of section four hundred ninety-nine-aa of this title will be reduced
if, during the benefit period, the aggregate floor area of such eligible
premises occupied or used for industrial and  manufacturing  activities,
as   defined   in   subdivision   fourteen-a  of  section  four  hundred
ninety-nine-aa of this title, is reduced.
6. No abatement shall be granted pursuant to this title if:
(a) 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
(b) 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-ff 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.