2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 421-M - Exemption of Certain New or Substantially Rehabilitated Multiple Dwellings From Local Taxation.

§  421-m.  Exemption  of  certain  new  or substantially rehabilitated
multiple dwellings from local taxation. 1. (a) A city, town  or  village
may,  by  local  law,  provide  for  the exemption of multiple dwellings
constructed or substantially rehabilitated in a benefit area  designated
in  such  local law from taxation and special ad valorem levies, but not
special assessments, as provided in  this  section.  Subsequent  to  the
adoption  of  such a local law, any other municipal corporation in which
the designated benefit area is located may likewise exempt such property
from its taxation and special ad valorem levies by local law, or in  the
case of a school district, by resolution.
(b)  As  used  in this section, the term "benefit area" means the area
within a city, town or village, designated by local  law,  to  which  an
exemption, established pursuant to this section, applies.
(c)  The term "substantial rehabilitation" means all work necessary to
bring  a  property  into  compliance  with  all  applicable   laws   and
regulations  including  but not limited to the installation, replacement
or repair of heating, plumbing, electrical and related systems  and  the
elimination of all hazardous and immediately hazardous violations in the
structure  in  accordance  with  state and local laws and regulations of
state and local agencies. Substantial rehabilitation  may  also  include
reconstruction or work to improve the habitability or prolong the useful
life  of  the  property;  provided  substantial rehabilitation shall not
include ordinary maintenance or repair.
(d) The term "multiple dwelling" means a dwelling, other than a hotel,
which is to be occupied or is occupied as the residence or home of three
or more families living  independently  of  one  another,  whether  such
dwelling is rented or owned as a cooperative or condominium.
2.  (a) Eligible new or substantially rehabilitated multiple dwellings
in a designated benefit area shall be exempt according to the  following
schedule:
CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF CERTAIN
MULTIPLE DWELLINGS
During construction or                  Exemption
substantial rehabilitation (maximum
three years)                            100%
Following completion of work year:
1 through 12                            100%
13-14                                   80%
15-16                                   60%
17-18                                   40%
19-20                                   20%
(b)  Provided that taxes shall be paid during any such period at least
in the amount of the taxes  paid  on  such  land  and  any  improvements
thereon   during  the  tax  year  preceding  the  commencement  of  such
exemption.   Provided further that no other  exemption  may  be  granted
concurrently to the same improvements under any other section of law.
3. To be eligible for exemption under this section:
(a)  Such  construction or substantial rehabilitation shall take place
on vacant, predominantly vacant  or  under-utilized  land,  or  on  land
improved  with  a  non-conforming  use or on land containing one or more
substandard or structurally unsound dwellings, or a  dwelling  that  has
been certified as unsanitary by the local health agency.
(b)  Such  construction or substantial rehabilitation was commenced on
or after the effective date of the local law,  ordinance  or  resolution
described  in  subdivision  one  of this section, but no later than June
fifteenth, two thousand nineteen.
(c) At least twenty percent  of  the  units  shall  be  affordable  to
individuals  or families of low and moderate income whose incomes at the

time of initial occupancy do not  exceed  ninety  percent  of  the  area
median  income  adjusted  for  family  size and the individual or family
shall pay in rent or  monthly  carrying  charges  no  more  than  thirty
percent  of  their  adjusted  gross  income as reported in their federal
income tax return, or would be reported if such  return  were  required,
less such personal exemptions and deductions and medical expenses as are
actually  taken  by  the  taxpayer,  as verified according to procedures
established by the state division of housing and community renewal. Such
procedures shall be published  through  notice  in  the  state  register
without  further  action  required  for  the promulgation of regulations
pursuant to the state administrative procedure act.
(d) Such construction or substantial  rehabilitation  is  carried  out
with  the  assistance of grants, loans or subsidies for the construction
or substantial rehabilitation of affordable housing  from  any  federal,
state or local agency or instrumentality thereof.
4.  Application  for  exemption  under this section shall be made on a
form prescribed by the commissioner and filed with the  assessor  on  or
before the applicable taxable status date.
5.  In  the  case  of  property  which is used partially as a multiple
dwelling and partially for commercial or other  purposes,  the  property
shall be eligible for the exemption authorized by this section if:
(a)  The  square  footage  of  the portion used as a multiple dwelling
represents at least fifty percent of the square footage  of  the  entire
property;
(b) At least twenty percent of the units are affordable to individuals
or  families  of low and moderate income, as determined according to the
criteria set forth  in  paragraph  (c)  of  subdivision  three  of  this
section; and
(c)  The  requirements  of  this  section are otherwise satisfied with
respect to the portion of the property used as a multiple dwelling.
6. The exemption authorized by this section shall not be available  in
a   jurisdiction  to  which  the  provisions  of  section  four  hundred
twenty-one-a  or  four  hundred  twenty-one-c  of   this   article   are
applicable.
7.  A  city,  town  or  village providing an exemption pursuant to the
authority of  this  section  shall  develop  an  income  monitoring  and
compliance  plan  to  meet  the criteria of paragraph (c) of subdivision
three of this section and such plan shall  be  reviewed,  evaluated  and
approved  by  the  state  division of housing and community renewal as a
condition of providing such exemption. Such plan shall include an annual
certification that the multiple dwelling receiving  an  exemption  meets
the  requirements  of this section. Such certification shall be provided
to the assessor and the state division of housing and community renewal.
If such requirements are not met, then the multiple dwelling  shall  not
qualify for the exemption in that year.