2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2-E - Tax Exemption for Certain Construction Work on Mixed-Use Property in Cities Having a Population of One Million or More › 489-CCCCC - Eligibility for Benefits.

§   489-ccccc.  Eligibility  for  benefits.    1.  A  recipient  of  a
certificate of  eligibility  with  an  effective  date  of  July  first,
nineteen  hundred  ninety-five  or  after must make one-half the minimum
required expenditure within eighteen months of  the  effective  date  of
such  certificate,  and  make  the  minimum  required expenditure within
thirty-six months of the  effective  date  of  such  certificate  to  be
eligible  to receive the benefits of this title. Any recipient who shall
fail to make such expenditures shall cease to be eligible  for  benefits
pursuant to this title and shall pay, with interest, any taxes for which
an exemption was claimed pursuant to this title.
2.   No   benefits  pursuant  to  this  title  shall  be  granted  for
construction work on any condominium unit  unless  such  unit  is  in  a
building  or  structure  which,  if  viewed as a whole and as if it were
under single ownership,  would  qualify  as  mixed-use  property.    The
minimum   required   expenditure   applicable  to  any  recipient  of  a
certificate of eligibility for construction work on a  condominium  unit
shall  be equal to the minimum required expenditure which would apply if
a certificate of eligibility were issued for construction  work  on  the
entire  property where such unit is located. Nothing in this subdivision
shall be construed to prevent owners of condominium units  in  the  same
property from forming an association to be a recipient.
3.  No  benefits  pursuant  to  this  title  shall  be granted for any
construction work unless the applicant filed  an  application  for  such
benefits on or before the date of issuance of a building permit for such
work.  The  requirements  of this subdivision 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
of  finance  on  behalf  of  the  applicant  a  preliminary  application
containing such information as the department of finance shall prescribe
by rule.
4.  No  benefits  pursuant  to  this  title  shall  be granted for any
construction work on property any part of which is used or is to be used
for a restricted activity.
5.  No  benefits  pursuant  to  this  title  shall  be   granted   for
construction  work  which is the subject of a certificate of eligibility
issued pursuant to title  two,  title  two-C  or  title  two-D  of  this
article.
6.  The  benefits  of  this  title  shall  be  granted exclusively for
residential    construction  work  or  a  combination   of   residential
construction work and commercial construction work described in approved
plans.  The  benefits  of  this  title  shall be granted exclusively for
residential  construction  work  or   a   combination   of   residential
construction work and commercial construction work on existing buildings
or  structures  which,  after completion of such construction work, will
qualify as mixed-use property. No benefits pursuant to this title  shall
be granted for construction of a new building or structure.
7.   Any  tax  lot  which  is  partly  located  inside  the  mixed-use
construction exemption area shall  be  deemed  to  be  entirely  located
inside such area.
8.  No  benefits  pursuant  to  this  title  shall  be granted for any
residential construction work or combination of residential construction
work and commercial construction work 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  eligibility, neither the
applicant, nor any person owning a substantial interest in the  property
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 property 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
property is an officer, director or general partner.
(c) "Substantial interest" as used in this subdivision and subdivision
nine of this section shall mean ownership and control of an interest  of
ten per centum or more in a property or any person owning a property.
9.  (a) If any person described in the statement required by paragraph
(b) of subdivision eight of  this  section  or  paragraph  (b)  of  this
subdivision  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 exemption was claimed pursuant to
this title.
(b) The recipient shall, on the certificate of continuing  use,  state
whether  any  charges  alleging violation by the recipient or any person
owning a substantial interest in the property, or any officer,  director
or  general  partner  of  the  recipient  or person owning a substantial
interest in the property, or any person for whom the recipient or person
owning a substantial interest in the property is an officer, director or
general partner, 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, are pending. For purposes of
this paragraph, "substantial interest" shall have the  same  meaning  as
set forth in paragraph (c) of subdivision eight of this section.
10. In addition to any other qualifications for exemption from payment
of taxes set forth in this title, an applicant must be:
(a)  obligated  to  pay real property tax on the property for which an
exemption is sought, whether such obligation arises  because  of  record
ownership  of  such  property, or because the obligation to pay such tax
has been assumed by contract; or
(b) the record owner or lessee of property which is exempt  from  real
property  taxation  who  has  entered into an agreement to sell or lease
such property to another person. Such person  shall  be  a  co-applicant
with such owner or lessee.
11. A co-applicant with a public entity shall be an eligible recipient
pursuant  to  this  title, provided that for such period as the property
which is the subject of the certificate of eligibility  is  exempt  from
real  property  taxation  because  it is owned or controlled by a public
entity no benefits shall be available to such recipient pursuant to this
title. Such recipient shall receive benefits pursuant to this title when
such property ceases to be eligible  for  exemption  pursuant  to  other
provisions  of law, as follows: the recipient shall, commencing with the
date such tax exemption ceases, and continuing until the  expiration  of
the benefit period pursuant to this title, receive the benefits to which

such  recipient  is  entitled  in the corresponding tax year pursuant to
this title.
12.   Notwithstanding   the  provisions  of  any  local  law  for  the
stabilization of rents in multiple dwellings  or  the  emergency  tenant
protection act of nineteen seventy-four, the rents of a dwelling unit in
property  which  is the subject of a certificate of eligibility pursuant
to this title shall be fully subject to control under  such  local  law,
unless  exempt  under  such  local  law  from  control  by reason of the
cooperative or condominium status of the dwelling unit, for  the  entire
period  for  which  such property is receiving benefits pursuant to this
title, provided, however, that  for  purposes  of  this  subdivision,  a
property  receiving  benefits  pursuant to this title whose benefits are
suspended, terminated or revoked by the department of finance  shall  be
deemed  to  be  receiving  benefits for the length of time such benefits
would have been received  if  such  benefits  had  not  been  suspended,
terminated  or  revoked,  or for the period such local law is in effect,
whichever is shorter.  Thereafter,  such  rents  shall  continue  to  be
subject to such control, except that such rents that would not have been
subject  to such control but for this subdivision, shall be decontrolled
if the landlord has included in each lease and renewal thereof for  such
unit  for the tenant in residence at the time of such decontrol a notice
in at least twelve point type informing such tenant that the unit  shall
become  subject  to  such  decontrol  upon  the  expiration  of benefits
pursuant to this title.