2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 489 - Exemption From Taxation of Alterations and Improvements to Multiple Dwellings to Eliminate Fire and Health Hazards; Abatement.

§  489.  Exemption  from  taxation  of alterations and improvements to
multiple dwellings to eliminate fire and health hazards;  abatement.  1.
(a)  Any  city  to which the multiple dwelling law is applicable, acting
through its local legislative body or other governing agency, is  hereby
authorized  and  empowered, to and including January first, two thousand
twenty-two, to adopt and amend local laws or ordinances  providing  that
any increase in assessed valuation of real property shall be exempt from
taxation  for  local  purposes,  as  provided herein, to the extent such
increase results from:
(1) conversion of buildings or structures on such property to class  A
multiple  dwellings  not  used  in  whole  or  in  part  for single room
occupancy, including conversion of residential units qualified  for  the
protection  of article seven-C of the multiple dwelling law in buildings
classified as interim multiple dwellings pursuant  to  such  article  to
units  which  are  in  compliance  with the standards of safety and fire
protection set forth in article seven-B of the multiple dwelling law  or
to  units  which  have  a  certificate  of occupancy as class A multiple
dwellings; or
(2) alterations or improvements, including  as  improvements  asbestos
abatement  to the extent such asbestos abatement is required by federal,
state or local law, on such property to eliminate unhealthy or dangerous
conditions or to replace inadequate and  obsolete  sanitary  facilities,
any  of  which represent fire or health hazards, in any existing class A
multiple dwellings or buildings consisting of one or two dwelling  units
over  space  used  for commercial occupancy, except insofar as the gross
cubic content of the building is increased thereby; or
(3) alterations or improvements on such property which are designed to
conserve the use of fuel, electricity or other such  energy  sources  in
any  dwellings  or other buildings or structures described in clause one
or two of this paragraph; or
(4) alterations or improvements to the exterior walls of dwellings  or
other  buildings  or structures on such property in order to comply with
any provision of law regulating dwellings, buildings, or structures that
are in an area designated as an historic or landmark area  or  that  are
designated as historic or landmark buildings or structures; or
(5) alterations or improvements constituting a moderate rehabilitation
of  a  substantially  occupied  class  A multiple dwelling within a city
having a population of one million or more as  certified  by  the  local
housing agency pursuant to local law or rules and regulations; or
(6)   alterations   or   improvements   constituting   a   substantial
rehabilitation of a class A multiple  dwelling  or  a  conversion  of  a
building  or  structure  into  a  class A multiple dwelling as part of a
program to provide housing for low and  moderate  income  households  as
defined  by  the local housing agency pursuant to rules and regulations,
provided that such alterations or improvements or conversions  shall  be
aided  by  a  grant,  loan  or  subsidy from any federal, state or local
agency or instrumentality, including, in the  discretion  of  the  local
housing agency, a subsidy in the form of a below market sale.
Such conversion, alterations or improvements shall be completed within
thirty  months after the date on which same shall be started except that
such  thirty  month  limitation  shall  not  apply  to  conversions   of
residential units which are registered with the loft board in accordance
with   article   seven-C  of  the  multiple  dwelling  law  pursuant  to
subparagraph one of this paragraph.  Notwithstanding  the  foregoing,  a
sixty  month period for completion shall be available for alterations or
improvements undertaken by a housing development fund company  organized
pursuant to article eleven of the private housing finance law, which are
carried  out  with  the  substantial  assistance  of  grants,  loans  or

subsidies from any  federal,  state  or  local  governmental  agency  or
instrumentality  or which are carried out in a property transferred from
such city if alterations and improvements  are  completed  within  seven
years  after the date of transfer. In addition, the local housing agency
is hereby empowered to grant an extension of the  period  of  completion
for  any  project carried out with the substantial assistance of grants,
loans or subsidies from any federal, state or local governmental  agency
or  instrumentality,  if  such alterations or improvements are completed
within  sixty  months  from  commencement  of  construction.   Provided,
further,  that such conversion, alterations or improvements shall in any
event be completed prior to June  thirtieth,  two  thousand  twenty-two.
Exemption  for  conversions,  alterations  or  improvements  pursuant to
subparagraph one, two, three or four of this  paragraph  shall  continue
for  a  period not to exceed fourteen years and begin no sooner than the
first quarterly tax bill immediately following the  completion  of  such
conversion,  alterations  or  improvements. Exemption for alterations or
improvements pursuant to this subparagraph or subparagraph five of  this
paragraph  shall  continue  for a period not to exceed thirty-four years
and shall begin no sooner than the first quarterly tax bill  immediately
following  the  completion  of  such  alterations  or improvements. Such
exemption shall be equal to the  increase  in  the  valuation  which  is
subject  to  exemption  in full or proportionally under this subdivision
for ten or thirty years, whichever is applicable. After such  period  of
time,   the   amount   of  such  exempted  assessed  valuation  of  such
improvements shall be reduced by twenty percent in each succeeding  year
until  the  assessed  value  of  the  improvements  are  fully  taxable.
Provided,  however,  exemption  for  any  conversion,   alterations   or
improvements  which  are  aided  by a loan or grant under article eight,
eight-A, eleven, twelve, fifteen or twenty-two of  the  private  housing
finance  law,  section six hundred ninety-six-a or section ninety-nine-h
of the general municipal law, or section three  hundred  twelve  of  the
housing  act  of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the
Cranston-Gonzalez national affordable housing act (42 U.S.C.A. 12701 et.
seq.), or started after July first, nineteen hundred eighty-three  by  a
housing development fund company organized pursuant to article eleven of
the  private  housing  finance  law  which  are  carried  out  with  the
substantial assistance of grants, loans or subsidies from  any  federal,
state  or  local  governmental  agency  or  instrumentality or which are
carried  out  in  a  property  transferred  from  any  city  and   where
alterations  and improvements are completed within seven years after the
date of transfer may commence  at  the  beginning  of  any  tax  quarter
subsequent  to the start of such conversion, alterations or improvements
and  prior  to  the  completion  of  such  conversion,  alterations   or
improvements.
(b)  Any  city  to  which the multiple dwelling law is not applicable,
acting through its local legislative body or other governing agency,  is
hereby  authorized  and empowered, to and including June first, nineteen
hundred seventy-two,  to  adopt  and  amend  local  laws  or  ordinances
providing  that  any  increase  in  assessed  valuation  resulting  from
alterations and improvements to eliminate presently  existing  unhealthy
or  dangerous  conditions in any multiple dwellings occupied, as a rule,
for permanent residence purposes or to replace inadequate  and  obsolete
sanitary  facilities  any  of which represent fire or health hazards, in
such dwellings except insofar as the gross cubic content of the building
is increased thereby, shall be exempt from taxation for  local  purposes
for  a  period  not to exceed twelve years after the taxable status date
immediately  following  the  completion  thereof,  provided   that   the
alterations  or  improvements  for which the benefits of any such law or

ordinance are claimed were started after March first,  nineteen  hundred
sixty-two,  and  completed  within two years from the date on which they
were started and in any event prior to December  thirty-first,  nineteen
hundred seventy-four.
1-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this
section, alterations, improvements or conversions  of  any  building  or
structure  that  are  eligible for benefits pursuant to paragraph (a) of
subdivision one of this  section  except  insofar  as  the  gross  cubic
content  of  such  building  or  structure is increased thereby shall be
eligible for such benefits insofar as the gross cubic  content  of  such
building or structure is increased thereby provided that:
(a) for all tax lots now existing or hereafter created, at least fifty
percent  of  the  floor  area  of  the  completed  building or structure
consists of the pre-existing building or structure that  was  converted,
altered  or improved in accordance with paragraph (a) of subdivision one
of this section, and
(b) for tax lots in the city of New York  now  existing  or  hereafter
created  within  the  following  area  in the borough of Manhattan, such
conversions, alterations or improvements are aided by a grant,  loan  or
subsidy  from  any  federal,  state  or local agency or instrumentality:
beginning at the intersection of the United States pierhead line in  the
Hudson  river  and  the  center line of Chambers street extended, thence
easterly to the center line of Chambers street and continuing along  the
center  line  of  Chambers  street  to the center line of Centre street,
thence southerly along the center line of Centre street  to  the  center
line  of  the Brooklyn Bridge to the intersection of the Brooklyn Bridge
and the United States pierhead line in the East river, thence  northerly
along  the  United  States  pierhead  line  in  the  East  river  to the
intersection of the United States pierhead line in the  East  river  and
the center line of One Hundred Tenth street extended, thence westerly to
the  center  line  of  One Hundred Tenth street and continuing along the
center line of One Hundred Tenth street to its westerly terminus, thence
westerly to the intersection of the center line  of  One  Hundred  Tenth
street extended and the United States pierhead line in the Hudson river,
thence  southerly  along  the  United States pierhead line in the Hudson
river to the point of  beginning.  For  purposes  of  this  subdivision,
"floor  area"  shall  have  the  same  meaning  as  in  paragraph  b  of
subdivision one of section four  hundred  twenty-one-a  of  this  title.
Nothing  in  this  subdivision  shall  be  construed to provide benefits
pursuant to subdivision two of this section for the  costs  attributable
to the increased cubic content in any such building or structure.
2.  (a)  With  respect  to  conversions,  alterations  or improvements
eligible to receive the benefits of subdivision one of this section, any
such local law or ordinance may  also  provide  that  the  duration  and
amount  of  abatement of taxes on such property, including the land, may
be separately established for each  of  the  categories  of  eligibility
described  in  paragraph  a of subdivision one of this section, provided
that:
(1) except  as  provided  in  subparagraphs  two  and  three  of  this
paragraph, the annual abatement of taxes on such property, including the
land, shall not be an amount greater than eight and one-third per centum
of  the  total  cost of such conversion, alterations or improvements nor
shall  the  abatement  exceed  the  total  cost  of  such   conversions,
alterations  or  improvements or be effective for more than twenty years
and the annual abatement of taxes in any consecutive twelve-month period
shall  in  no  event  exceed  the  amount  of  taxes  payable  in   such
twelve-month period;
(2)  in  the  case  of  alterations  or  improvements  (i) pursuant to
subparagraph five of paragraph (a) of subdivision one  of  this  section
which  are  carried out with the substantial assistance of grants, loans
or subsidies from any federal, state or local agency or  instrumentality
or  any  not-for-profit  philanthropic organization one of whose primary
purposes is providing low or moderate income housing  or  financed  with
mortgage  insurance  by the New York city residential mortgage insurance
corporation or the state of New York mortgage agency or  pursuant  to  a
program   established   by   the   federal  housing  administration  for
rehabilitation of existing multiple dwellings in a neighborhood strategy
area as defined by the United States department  of  housing  and  urban
development,  or  (ii)  pursuant to subparagraph six of paragraph (a) of
subdivision one of this section the abatement of taxes on such property,
including the land, shall not exceed one hundred fifty per centum of the
certified  reasonable  cost  of  the  alterations  or  improvements,  as
determined  under  regulations of the local housing agency administering
the local law, and the annual abatement of taxes shall not exceed twelve
and one-half per centum of such certified reasonable cost, provided that
such abatement shall not be effective for more than twenty years and the
annual abatement of taxes in any consecutive twelve-month  period  shall
in  no  event  exceed  the  amount of taxes payable in such twelve-month
period; or
(3) in the case of alterations or improvements carried  out  with  the
substantial  assistance  of grants, loans or subsidies from any federal,
state  or  local  agency  or  instrumentality  or   any   not-for-profit
philanthropic  organization  one  of whose primary purposes is providing
low or moderate income housing, or financed with mortgage  insurance  by
the  New  York  city  residential  mortgage insurance corporation or the
state of New York mortgage agency or pursuant to program established  by
the  federal  housing  administration  for  rehabilitation  of  existing
multiple dwellings in a neighborhood strategy area  as  defined  by  the
United  States  department  of  housing and urban development where such
alterations or improvements are  done  on  property  located  in  census
tracts  in  which seventy-five percent or more of the population live in
households which earn fifty percent or  less  of  the  median  household
income  of  the  city  in  which  such  census  tracts  are located, the
abatement of taxes on such  property,  including  the  land,  shall  not
exceed  one hundred fifty per centum of the certified reasonable cost of
the alterations or improvements, as determined under regulations of  the
local  housing  agency  administering  the  local  law,  and  the annual
abatement of taxes shall not exceed twelve and one-half  per  centum  of
such  certified  reasonable cost, provided that such abatement shall not
be effective for more than twenty years  and  the  annual  abatement  of
taxes  in  any  consecutive twelve-month period shall in no event exceed
the amount of taxes payable in such twelve month period.
(b) Such abatement:
(1)  shall  begin  no  sooner  than  the  first  quarterly  tax   bill
immediately  following the completion of such conversion, alterations or
improvements, or
(2) in the case of any such conversion,  alterations  or  improvements
(i) completed after December thirty-first, nineteen hundred seventy-five
and  aided  by a loan under article eight of the private housing finance
law, or (ii) started after July first,  nineteen  hundred  seventy-seven
and aided by a loan under article fifteen of the private housing finance
law,  or  (iii)  started  after  July first, nineteen hundred eighty and
aided by a loan under article eight-A of the private housing finance law
or (iv) started after July first, nineteen hundred eighty and aided by a
loan under section three hundred twelve of the housing act  of  nineteen

hundred sixty-four (42 U.S.C.A. 1452b), or (v) started after July first,
nineteen  hundred  ninety-two and aided by a loan or grant under article
eleven, twelve, or  twenty-two  of  the  private  housing  finance  law,
section six hundred ninety-six-a or section ninety-nine-h of the general
municipal  law, or the Cranston-Gonzalez national affordable housing act
(42 U.S.C.A. 12701 et. seq.), or (vi) started after July first, nineteen
hundred eighty-eight by or on behalf of a company not  qualifying  under
any  of  the  above  provisions  which  is  a not-for-profit corporation
qualified pursuant to section 501(c)(3) of the Internal Revenue Code and
which has entered into a regulatory agreement  with  the  local  housing
agency  requiring  operation  of  the  property  as  housing for low and
moderate income persons and families; may be commenced at the  beginning
of  any  tax  quarter  subsequent  to  the  start  of  such  conversion,
alterations  or  improvements  and  prior  to  the  completion  of  such
conversion, alterations or improvements.
3.  Any  such  local  law or ordinance may also provide that where the
improvements and alterations include or benefit that part of a  building
which  is  not  occupied for dwelling purposes, the increase in assessed
valuation and the cost of the alteration shall be  apportioned  so  that
the  benefits  of  the  local law or ordinance shall not be provided for
improvements or alterations made for other than dwelling purposes.
4. Any such local law or ordinance may also provide that its  benefits
shall  not  become  available  to  any  multiple  dwelling,  building or
structure as provided in  paragraph  (a)  of  subdivision  one  of  this
section  unless  and until such multiple dwelling, building or structure
as provided in paragraph (a) of subdivision one of this section complies
with the applicable provisions of law. Any such  law  or  ordinance  may
make  provision  as  to the date as of which particular improvements and
alterations  shall  be  deemed  to  have  been  completed  or  commenced
therefor,  as  the  case  may  be, for the purpose of qualifying for the
benefits thereof. Any such local law or  ordinance  may  make  provision
authorizing  the adoption of rules and regulations by the local agencies
of government for the effectuation of the purposes of this section.  Any
such  local  law  or  ordinance  shall provide that the benefits of this
section shall apply to any multiple dwelling, building or  structure  as
provided  in paragraph (a) of subdivision one of this section, which (i)
is operated exclusively for the benefit of persons or families  who  are
entitled  to  occupancy by reason of ownership of stock or membership in
the corporate owner, or for the benefit of such persons or families  and
other  persons  or  families  entitled  to  occupancy  under  applicable
provisions of law without  ownership  of  stock  or  membership  in  the
corporate  owner,  or  (ii) is owned as a condominium and is occupied as
the residence or home of three or more families living independently  of
each other; provided, however, that any such law or ordinance shall make
provision,  in  addition  to all other conditions of eligibility for the
benefits of this section, except for multiple dwellings in  which  units
have   been  newly  created  by  substantial  rehabilitation  of  vacant
buildings  or  conversions  of  non-residential  buildings,   that   the
availability of benefits under this section for such multiple dwellings,
buildings  or  structures shall be conditioned on the following: (1) any
items of work designated as a major capital  improvement  in  the  rules
adopted  by the local housing agency or asbestos abatement to the extent
such asbestos abatement is required by federal, state or local law,  and
(2)  (i)  the assessed valuation of such multiple dwelling, building, or
structure, including land, shall not exceed an average of forty thousand
dollars per dwelling unit  at  the  time  of  the  commencement  of  the
alterations or improvements, and (ii) the average per room sale price of
the  dwelling  units or the stock allocated to such dwelling units shall

have been no greater than thirty-five percent of  the  maximum  mortgage
amount  for  a  single  family home eligible for purchase by the Federal
National  Mortgage  Association  during  the  three  years   immediately
preceding  the commencement of the alterations or improvements; provided
that if less than ten percent of the dwelling  units  or  an  amount  of
stock  less  than  the  amount allocable to ten percent of such dwelling
units was not transferred  during  such  preceding  three  year  period,
eligibility   for  benefits  shall  be  conditioned  upon  the  multiple
dwelling, building,  or  structure  having  an  assessed  valuation  per
dwelling  unit of no more than forty thousand dollars at the time of the
commencement of the  alteration  or  improvements.  Notwithstanding  the
foregoing, such local law shall also provide benefits under this section
for  work completed in any such multiple dwelling, building or structure
within the first  three  years  of  its  conversion  to  cooperative  or
condominium  ownership,  as  evidenced  by  the  date on which the first
closing in a condominium to a bona fide purchaser occurs or in the  case
of  a  cooperative, the date on which the shares allocable to a unit are
conveyed to a bona fide purchaser. Any such local law shall  also  limit
the  maximum  amount  of  tax abatement which may be received in any tax
period under this section by any such  multiple  dwelling,  building  or
structure  for any alterations and improvements commenced three years or
more  after  its  initial  conversion  to  cooperative  or   condominium
ownership  to  an  amount  not  in  excess  of two thousand five hundred
dollars per dwelling unit  of  the  certified  reasonable  cost  of  the
alterations or improvements as determined under regulations of the local
housing  agency administering the local law. Any such local law may also
require such certifications and consents to access to records, including
other tax  records,  as  may  be  deemed  appropriate  to  enforce  such
conditions of eligibility. Any such local law or ordinance shall provide
that  the  local  agencies  of government shall establish maximum dollar
limits for specified items of cost for any  conversion,  alterations  or
improvements.  No costs in excess of such maximum dollar limits shall be
considered in determining the benefits of this section.
4-a. Notwithstanding any contrary provision  of  subdivision  four  of
this  section,  any  such  local law or ordinance shall provide that the
availability of benefits under this section to  any  multiple  dwelling,
building  or  structure  owned  and operated by a limited-profit housing
company established pursuant to  article  two  of  the  private  housing
finance law shall not be conditioned upon the assessed valuation of such
multiple  dwelling, building or structure, including land, as calculated
as an average dollar amount per  dwelling  unit,  at  the  time  of  the
commencement of the alterations or improvements; provided, however, that
such  limited-profit housing company (a) is organized and operating as a
mutual company, (b) continues to be organized and operating as a  mutual
company  and  to  own  and  operate  the  multiple dwelling, building or
structure receiving such benefits, and (c) has entered  into  a  binding
and  irrevocable agreement with the commissioner of housing of the state
of  New  York,  the  supervising  agency,  the  New  York  city  housing
development  corporation,  or  the New York state housing finance agency
prohibiting the dissolution or  reconstitution  of  such  limited-profit
housing  company  pursuant to section thirty-five of the private housing
finance law for not less than fifteen years  from  the  commencement  of
such  benefits.  For the purposes of this subdivision, the terms "mutual
company" and "supervising agency" shall have the same  meanings  as  set
forth in section two of the private housing finance law.
4-a-1.  Notwithstanding  any contrary provision of subdivision four of
this section, any such local law or ordinance  shall  provide  that  the
availability  of  benefits  under this section to any multiple dwelling,

building or structure owned and  operated  by  a  redevelopment  company
established  pursuant to article five of the private housing finance law
shall not be conditioned upon the assessed valuation  of  such  multiple
dwelling,  building  or  structure,  including land, as calculated as an
average dollar amount per dwelling unit, at the time of the commencement
of  the  alterations  or  improvements:  provided,  however,  that  such
redevelopment  company  (a)  is  organized  and  operating  as  a mutual
redevelopment company, (b) continues to be organized and operating as  a
mutual  redevelopment  company  and  to  own  and  operate  the multiple
dwelling, building or structure receiving such  benefits,  and  (c)  has
entered  into  a binding and irrevocable agreement with the commissioner
of housing and community renewal, the supervising agency, the  New  York
city  housing  development  corporation,  or  the New York state housing
finance agency prohibiting the dissolution  or  reconstitution  of  such
redevelopment  company  pursuant  to section one hundred twenty-three of
the private housing finance law until the earlier to occur  of:  (i)  in
fifteen  years  from  the  commencement  of  such  benefits, or (ii) the
expiration of any tax exemption granted to  such  redevelopment  company
pursuant  to  section  one  hundred  twenty-five  of the private housing
finance law. For the purposes of this subdivision,  the  terms  "mutual"
and  "supervising  agency"  shall have the same meanings as set forth in
section one hundred two of the private housing finance law.
4-b. Notwithstanding any contrary provision  of  the  private  housing
finance  law, any such local law shall provide that the benefits of this
section shall apply to any limited profit housing company as provided in
this section. In addition to the limitations set  forth  in  subdivision
eleven  of  this  section, such multiple dwelling, building or structure
shall be eligible for benefits only where at  least  one  building  wide
improvement  or  alteration  is  part  of  the application for benefits.
Furthermore, to the extent that such  alterations  or  improvements  are
financed  with  grants,  loans  or subsidies from any federal, state, or
local agency or instrumentality, such  multiple  dwelling,  building  or
structure  shall  be  eligible  for  benefits only if the limited profit
housing company has entered into a  binding  and  irrevocable  agreement
with  the  commissioner  of  housing  of  the  state  of  New  York, the
supervising agency, as such term  is  defined  in  section  two  of  the
private  housing  finance  law,  the  New  York city housing development
corporation, or the New York state housing  finance  agency  prohibiting
the dissolution or reconstitution of such limited profit housing company
pursuant  to  section thirty-five of the private housing finance law for
not less than fifteen years from the commencement of such benefits.  The
abatement of taxes on such property, including the land, shall not be an
amount  greater  than ninety per centum of the certified reasonable cost
of such alterations or improvements, as determined under regulations  of
the  local  housing agency administering the local law, nor greater than
eight and one-third percent of such certified  reasonable  cost  in  any
twelve  month  period,  nor be effective for more than twenty years. The
annual abatement of taxes in any twelve month period shall in  no  event
exceed fifty percent of the amount of taxes payable in such twelve month
period  pursuant to the applicable exemption granted pursuant to article
two of the private housing finance law or other applicable laws or fifty
percent of payments made in lieu of taxes in such twelve month period.
4-c. (a) Any such local law may also provide that a group of  multiple
dwellings  which was developed as a planned community and which is owned
as two separate condominiums containing a total of ten thousand or  more
dwelling  units  shall  be  eligible  for tax exemption and abatement as
provided in this subdivision.
(b) Any increase in assessed valuation resulting from  alterations  or
improvements  to  one  or more multiple dwellings in a planned community
described in paragraph (a) of this  subdivision  shall  be  exempt  from
taxation  for  local  purposes.  Such  exemption  shall  be equal to the
increase  in  the  valuation  which  is  subject to exemption under this
paragraph for thirty years. After such period of  time,  the  amount  of
such  exempted assessed value shall be reduced by twenty percent in each
succeeding  year  until  the  assessed  value  of  the  alterations   or
improvements  is  fully  taxable.  Such  exemption  may  commence at the
beginning of any tax quarter subsequent to the start of such alterations
or improvements. In no event  shall  such  alterations  or  improvements
directly  or  indirectly  result  in  an  equalization  increase  in the
assessed valuation of any multiple dwelling forming part of the  planned
community where such alterations or improvements are performed.
(c)  The  abatement  of  taxes  on  a  planned  community described in
paragraph (a) of this subdivision, including the land, shall not  exceed
the  greater  of  (i)  one  hundred  fifty  per  centum of the certified
reasonable cost of the alterations or improvements, as determined  under
the regulations of the local housing agency administering the local law,
and  (ii)  the  construction  cost  of  the  alterations or improvements
identified in such regulations. Such abatement shall  not  be  effective
for  more  than  twenty  years  and the annual abatement of taxes in any
consecutive twelve-month period shall not be greater than ten per centum
of the total abatement granted and shall not exceed the amount of  taxes
payable  in  such  consecutive twelve-month period. Such abatement shall
begin no sooner than the first quarterly tax bill immediately  following
the  completion of such alterations or improvements. The limitations set
forth in subdivision  four  of  this  section  for  multiple  dwellings,
buildings  and structures owned as condominiums shall be inapplicable to
benefits  granted  pursuant  to  this  subdivision.  Abatement  benefits
granted  pursuant  to this subdivision shall be apportioned among all of
the condominium tax lots within the condominium in which the alterations
or improvements are made, although such alterations or improvements  may
have  been  made  to  one  or  fewer  than all of the multiple dwellings
therein.
(d) In  the  event  that  multiple  alterations  or  improvements  are
undertaken  in  a  planned  community described in paragraph (a) of this
subdivision and separate applications for benefits  therefor  are  made,
all  requirements  concerning  physical condition of and compliance with
law by the multiple dwellings in such planned community shall apply only
upon completion of all such alterations or improvements,  provided  that
all such alterations or improvements are completed within six years.
(e)  Except  as  provided in this subdivision, all of the requirements
imposed by this section  on  projects  described  in  paragraph  (a)  of
subdivision  one  of  this section shall be applicable to alterations or
improvements granted benefits pursuant to this subdivision.
(f) This subdivision  shall  be  applicable  only  to  alterations  or
improvements  completed  prior  to  December  thirty-first, two thousand
five.
5. To the end that conversions, alterations, and improvements aided by
this section shall interfere as  little  as  practicable  with  urgently
needed   public   improvements  or  the  clearance,  rehabilitation,  or
rebuilding of substandard and unsanitary areas, and shall be confined to
multiple dwellings, buildings or structures as provided in paragraph (a)
of subdivision one of this section which are  structurally  sound,  such
local  law  or  ordinance  may  provide that exemption or abatement from
taxation hereunder shall be restricted to multiple dwellings,  buildings
or  structures  as  provided in paragraph (a) of subdivision one of this

section (a) which the local planning commission in any such  city  shall
certify  will  not  interfere  with projected public improvements or the
clearance and rebuilding of substandard and insanitary  areas,  and  (b)
which  the  local building department certifies to be structurally sound
and (c) which,  if  in  an  area  approved  for  clearance,  replanning,
reconstruction  or neighborhood rehabilitation pursuant to chapter eight
hundred eighty-seven of the laws of nineteen hundred forty-five, as from
time to time amended, or if in an area designated  for  studies,  tests,
demonstrations  and  other activities for the prevention and elimination
of slums and urban blight pursuant to chapter six hundred eight  of  the
laws  of  nineteen hundred fifty-six as from time to time amended, or if
in an area for which a preliminary  or  final  plan  has  been  approved
pursuant  to  chapters  six hundred eighty-eight of the laws of nineteen
hundred fifty-seven or nine hundred twenty-four of the laws of  nineteen
hundred  fifty-eight,  as  from  time  to  time amended, or chapter nine
hundred seventy-one of the laws of nineteen hundred sixty, or if  in  an
area for which an urban renewal plan or tests, studies or demonstrations
have  been approved pursuant to article fifteen of the general municipal
law, is certified by the project board for the area as a dwelling  which
is  to  be  or  has  been  improved  in conformity with such replanning,
reconstruction, neighborhood improvement, studies, tests, demonstrations
or plan.
6. Notwithstanding  the  provisions  of  the  multiple  dwelling  law,
multiple   residence   law,  and  any  local  law,  ordinance,  rule  or
regulation, any city to which this section is applicable acting  through
its  local  legislative  body  may  provide,  in  a manner that shall be
uniform as to  any  particular  type  or  class  of  multiple  dwelling,
building or structure as provided in paragraph (a) of subdivision one of
this  section,  that,  any  multiple  dwelling, building or structure as
provided in paragraph (a) of subdivision one of this  section  to  which
alterations and improvements are made pursuant to this section and which
did  not  require  a  certificate of occupancy on April second, nineteen
hundred forty-five, and, in the case of multiple dwellings, buildings or
structures as provided in paragraph  (a)  of  subdivision  one  of  this
section  to  which  the  multiple  residence  law is applicable, on July
first, nineteen hundred fifty-two, may not be  occupied  lawfully  after
such  date  upon  the  completion  of  such alterations and improvements
without a certificate of occupancy.
7. Any local law or ordinance may also  provide  any  or  all  of  the
following:
(a)  The  benefits  of  this  section  shall not apply to any multiple
dwelling,  building  or  structure  as  provided  in  paragraph  (a)  of
subdivision   one   of  this  section  in  which  rents,  subsequent  to
alterations and improvements, shall exceed such amount, if any,  as  may
be  fixed  by  the  local  legislative  body  or by the municipal agency
designated by the local legislative body of the  municipality  involved,
based upon a standard formula.
(b)  (1)  The benefits of this section shall not apply to any multiple
dwelling,  building  or  structure  as  provided  in  paragraph  (a)  of
subdivision  one  of this section which is not subject to the provisions
of the emergency housing rent  control  law  or  to  local  law  enacted
pursuant  to  the  local  emergency  housing rent control act, where the
local legislative body or other governing  agency  of  the  municipality
involved  shall  prescribe  that  the benefits herein provided shall not
apply to such multiple dwelling, building or structure  as  provided  in
paragraph  (a)  of  subdivision  one  of this section provided that such
local legislative body or other  governing  agency  shall  not  use  the
authority  conferred  in  this  paragraph  (b)  to  rescind any benefits

granted under former section five-h of the tax law prior to July  first,
nineteen  hundred  fifty-eight;  and  further  provided  that  where the
benefits provided herein or under such former section five-h of the  tax
law  are  granted  or  had been granted on or after July first, nineteen
hundred fifty-eight, to any multiple  dwelling,  building  or  structure
which  is  decontrolled subsequent to the granting of such benefits, the
local legislative body or  other  governing  agency  may  withdraw  such
benefits from such dwelling.
(2)  Any  dwelling  unit  subject  to rent regulation on or before the
effective date of this subparagraph as  a  result  of  receiving  a  tax
exemption or abatement pursuant to this section shall be subject to such
regulation  until the occurrence of the first vacancy of such unit after
such benefits are no longer being received at which time such unit shall
be deregulated or if each lease and renewal thereof for  such  unit  for
the tenant in residence at the time of the expiration of the tax benefit
period  has  included  a  notice in at least twelve point type informing
such tenant that the unit shall become subject to deregulation upon  the
expiration of such tax benefit period and states the approximate date on
which such tax benefit period is scheduled to expire, such dwelling unit
shall  be  deregulated  as  of the end of the tax benefit period; unless
such  unit  would  have  been  subject  to  regulation  under  the  rent
stabilization law of nineteen hundred sixty-nine or the emergency tenant
protection act of nineteen seventy-four.
(c) The benefits of this section shall apply to any multiple dwelling,
building or structure as provided in paragraph (a) of subdivision one of
this  section  occupied, as a rule, for permanent residence purposes and
which is not used in whole or in part  for  single  room  occupancy  and
which  is  not  subject  to the provisions of the emergency housing rent
control law or to local law enacted  pursuant  to  the  local  emergency
housing  rent  control  act,  provided that it is located within an area
which has been designated by the local  planning  commission  under  the
provisions  of  section  seventy-two-m of article fifteen of the general
municipal law or where a program of local  neighborhood  improvement  or
housing  maintenance  is being carried out under the supervision or with
the assistance of the local government and provided that  the  rents  or
carrying  charges, subsequent to alterations and improvements, (1) shall
not exceed such amount, if any, as may be fixed by the local legislative
body or by the municipal agency designated by the local legislative body
of the municipality involved, based upon  a  standard  formula,  or  (2)
where  the  local  legislative  body  so provides, shall not exceed such
amount, if any, as may be fixed for such multiple dwelling, building  or
structure  as  provided  in  paragraph  (a)  of  subdivision one of this
section pursuant  to  any  local  law  enacted  pursuant  to  the  local
emergency  housing  rent control act, and further provided that prior to
such alterations and improvements, the multiple  dwelling,  building  or
structure  as  provided  in  paragraph  (a)  of  subdivision one of this
section,  if  a  multiple  dwelling,  was  either  a  multiple  dwelling
occupied,  as a rule, as a temporary or transient residence or occupied,
as a rule, for permanent residence purposes and used in whole or in part
for single room occupancy.
(d) The benefits of this  section  shall  apply  to  any  building  or
structure  as  provided  in  paragraph  (a)  of  subdivision one of this
section, provided that the  rents  or  carrying  charges  subsequent  to
conversion  (1) shall not exceed such amount, if any, as may be fixed by
the local legislative body or by the municipal agency designated by  the
local  legislative  body  of  the  municipality  involved,  based upon a
standard formula, or (2) where the local legislative body  so  provides,
shall  not exceed such amount, if any, as may be fixed for such dwelling

pursuant to any local  law  enacted  pursuant  to  the  local  emergency
housing rent control act.
8. Notwithstanding any other provision of this section the benefits of
this  section shall not apply to any private dwelling unless it is in an
area defined by clause (c) of subdivision five of this  section  and  is
certified by the project board for the area as a dwelling which is to be
or has been improved in conformity with such replanning, reconstruction,
neighborhood   improvement,  studies,  tests,  demonstrations  or  plan.
Notwithstanding the foregoing, for purposes  of  this  section  and  any
local  law  enacted  pursuant  hereto a class A multiple dwelling may be
deemed to include any garden-type maisonette dwelling project consisting
of a series of dwelling units which together and in their aggregate were
arranged or designed  to  provide  three  or  more  apartments  and  are
provided  as  a  group collectively with all essential services such as,
but not limited to, water supply, house sewers and heat, and  which  are
in  existence  and operated as a unit under single ownership on the date
upon which an application for the benefits of this section  is  received
by  the  city,  even  though  certificates  of occupancy were issued for
portions thereof as private dwellings.
8-a. Notwithstanding the  provisions  of  subdivision  eight  of  this
section  to  the contrary, unless excluded by local law, the benefits of
this section may apply  to:  (i)  alterations  or  improvements  to  any
private  dwelling; (ii) conversion of any private dwelling to a multiple
dwelling; or (iii) conversion of any  multiple  dwelling  to  a  private
dwelling, provided that such alterations, improvements or conversion are
part  of  a  project  which  has  applied  for  or is receiving benefits
pursuant to this section and shall be aided by a grant loan, or  subsidy
from any federal, state, or local agency or instrumentality.
9. (a) During the period of such exemptions the assessment on any such
land  and dwelling after such alterations and improvements, exclusive of
the increase in valuation which is  subject  to  exemption  in  full  or
proportionally  under  subdivision one of this section, shall not exceed
the valuation of the  previously  existing  dwelling  appearing  on  the
assessment rolls after the taxable status date immediately preceding the
commencement  of such alterations and improvements plus the value of the
land, any improvements other than those made  under  the  provisions  of
this  section and the proportion of increased assessed valuation that is
not exempt from taxation under  this  section,  which  proportion  shall
remain  constant  during the term of the exemption. Where the alteration
or improvement qualifies under subparagraph  two  of  paragraph  (a)  of
subdivision  two  of  this  section  or  under  clause  (A)  or  (B)  of
subparagraph one of paragraph (a) of subdivision eleven of this section,
the exemption shall also include an exemption from  taxation  for  local
purposes  for  twelve years upon that portion of the assessment, if any,
which exceeds the transition assessment, as defined in  subdivision  two
of  section eighteen hundred five of this chapter, in effect at the time
of the commencement of the exemption hereunder.
(b)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
subdivision, except as provided in subparagraph three of this paragraph,
for   buildings   in  which  alterations,  improvements  or  conversions
qualifying for an exemption under this section are commenced on or after
the date on which this paragraph becomes a law:
(1) The assessed value of  the  building  during  the  period  of  the
exemption  shall be pro-rated between the exempt and taxable portions of
the building assessment so that  throughout  the  exemption  period  the
exempt   portion   of  the  building  assessment  shall  bear  the  same
relationship to the non-exempt portion of the building assessment as  it
did  on  the final tax roll on which an exemption was first available to

such building for alterations or  improvements  made  pursuant  to  this
section  or  on  the  last  tax  roll on which such ratio was changed by
reason of additional improvements, whichever  results  in  the  greatest
percentage   of  exempt  assessed  valuation;  provided,  however,  that
increases in building value due to (i) additional improvements  that  do
not  qualify  for an exemption under this section, (ii) increases in the
value of non-residential portions of the building, or  (iii)  non-exempt
additions  to  cubic  content shall not be pro-rated, but shall be fully
taxable.
(2) Reductions in the assessed value of the building during the period
of the exemption shall be  pro-rated  between  the  taxable  and  exempt
portions  of  the  building  assessment  in  the  proportion  which  was
established pursuant to subparagraph one of this paragraph on the  final
tax  roll  for  the first fiscal year for which an exemption was granted
pursuant to this section, or on the last tax roll on  which  such  ratio
was  changed  by  reason  of  additional improvements, whether exempt or
non-exempt, or due to changes in the assessed  value  of  fully  taxable
space.  In  no  case,  however,  shall the value of an exemption granted
pursuant to this section be reduced during the  period  for  which  such
exemption was granted, by reason of a reduction in the assessed value of
the  building,  to an amount less than the amount of exemption appearing
on the first tax roll following the grant of this exemption.
(3) During the first three years of such exemptions, the assessment on
any such land and  dwelling  shall  be  determined  in  accordance  with
paragraph (a) of this subdivision.
10. In cities with a population of one million or more, any such local
law  or  ordinance  may  require  that, prior to application for any tax
exemption or abatement pursuant to this section,  relocation  awards  be
paid  to  certain  displaced  manufacturing  and other tenants under the
terms and conditions set forth below:
(a)  Relocation  awards  for  certain   tenants   of   non-residential
buildings.  Such local law or ordinance shall limit eligibility for such
a  relocation  award to former tenants and former subtenants of premises
in a non-residential building which is the subject of an application for
an alteration permit for conversion to a class A multiple dwelling, who:
(1) leased and used the vacated premises to conduct  a  manufacturing,
warehousing,  or  wholesaling business for not less than two consecutive
years immediately prior to vacating;
(2) vacated such premises on or after April  first,  nineteen  hundred
eighty-one for any reason other than eviction for non-payment of rent;
(3) vacated such premises (i) no earlier than twenty-four months prior
to the filing date of an application for such alteration permit and (ii)
no  later  than  the  completion  of  the conversion as evidenced by the
issuance of a permanent certificate of occupancy for a class A  multiple
dwelling;
(4)  either  purchased  or leased for a term of not less than eighteen
months other premises within such city with a floor area not  less  than
one-third of the floor area of the vacated premises;
(5) relocated their business to such other premises within one year of
vacating the vacated premises; and
(6)  paid  all  commercial  rent  or  occupancy  tax  for  the vacated
premises.  A subtenant shall be eligible to receive a  relocation  award
notwithstanding any lack of eligibility of its prime tenant.
(b)  Amount of relocation award. The relocation award shall not exceed
the greater of (1) all the base rent that accrued and was  paid  by  the
eligible  tenant during the final twenty-four months of its occupancy of
the vacated premises or (2) four dollars for each square foot  that  the
eligible  tenant  occupied  in  the  vacated  premises  during the final

twenty-four months of its occupancy of the vacated premises. As used  in
this  subdivision,  base  rent shall be calculated in the same manner as
base rent is calculated for purposes of commercial rent or occupancy tax
in  the  city  of  New York, or in any such city. However, the aggregate
award payable to a prime tenant and any subtenants of such prime  tenant
shall  not  exceed the amount which would have been payable to the prime
tenant had the prime tenant been eligible for  an  award  based  on  the
entire  floor  area  it  leased  from  the owner; and if such limitation
applies, the awards shall be prorated based upon the  total  floor  area
used and occupied by each eligible tenant.
(c)  Payment  of  award.  The  relocation  award  shall become due and
payable to an eligible tenant at the time  the  eligible  tenant  either
purchases  or  leases  other  premises  in accordance with paragraph (a)
above within such city and certifies eligibility to and demands  payment
of  the  award from the owner of the vacated building. If the relocation
award is not paid within thirty days of such certification  and  demand,
interest  shall  accrue  on  the  relocation  award  from  the  date  of
certification and demand at the rate of twenty-four percent per annum.
(d) Notice of claim. At any time after such certification  and  demand
and  prior to the date of the filing of an application for tax exemption
or abatement for the vacated  building  pursuant  to  this  section,  an
eligible  tenant  who  has  not received a relocation award shall have a
right to file a notice of claim. Such notice of  claim  shall  be  filed
with  the  county  clerk  of the county in which the vacated building is
located and shall  verify  the  claimant's  name,  its  compliance  with
eligibility requirements, the address of the vacated premises, the floor
area  it  occupied,  the  name  of the prime tenant if the claimant is a
subtenant, and all the base rent  that  accrued  and  was  paid  by  the
claimant during the final twenty-four months of its occupancy.
(e)  Discharge of notice of claim. A notice of claim may be discharged
by filing an undertaking with the clerk  of  the  county  in  which  the
premises  are  located  in  an  amount  equal  to  the amount claimed in
accordance with the procedures set forth in subdivision four of  section
nineteen  of  the  lien  law, or by payment into court of such amount in
accordance with the procedures set forth in section  fifty-five  of  the
lien law.
(f)  Affidavit  and  notice  as  a  condition  to tax benefits. No tax
exemption or abatement shall be granted pursuant to this section  unless
the  local  municipal  agency responsible for administering this section
receives an affidavit from the applicant which verifies that:
(1) the applicant has caused to be published a notice in  a  newspaper
of  general  circulation within the city, no later than sixty days prior
to filing of an application for tax exemption or abatement  pursuant  to
this  section,  which  advises  former  tenants  and subtenants of their
rights pursuant to any local law or ordinance enacted pursuant  to  this
subdivision; and
(2) no notice of claim has been filed or all claims have been released
by  the claimant, secured in accordance with the provisions of paragraph
(e) of this subdivision, or discharged as an improper claim by  a  court
order.
(g) Action on claim. If an eligible tenant or subtenant has duly filed
a  notice  of  claim pursuant to this subdivision and does not receive a
relocation award as provided herein, it may commence an  action  against
any  applicant  who filed a false affidavit pursuant to paragraph (f) of
this subdivision within three years  of  such  filing  or  any  security
posted  by such applicant pursuant to paragraph (e) of this subdivision.
In any action to enforce a claim pursuant to this  subdivision,  if  the
court finds that the claimant has wilfully exaggerated the amount of the

claim,  the  claimant may be held liable in damages for an amount not to
exceed the proper relocation award. An eligible tenant in whose favor  a
judgment is entered shall be entitled to costs and reasonable legal fees
and disbursements provided that such judgment is in excess of the amount
which the applicant or owner offered to pay the eligible tenant.
(h)  Waiver.  Any  lease provision exempting, releasing or discharging
the obligation to pay a relocation award pursuant  to  this  subdivision
shall  be  deemed  to  be  void  as  against  public  policy  and wholly
unenforceable.
(i) Local zoning resolution. The provisions of  this  subdivision  ten
shall  not  apply  if the local zoning resolution expressly provides for
relocation  loans  and/or  grants  in  lieu  of  the  benefits  of  this
subdivision.
11. Limitations of benefits. (a) Applicability. The provisions of this
subdivision apply to all conversions, alterations and improvements under
this section. However, they shall not apply to:
(1)  alterations or improvements under subparagraph two, three or four
of paragraph (a) of subdivision one of this section, where carried out:
(A) with the substantial assistance of grants, loans or subsidies from
any  federal,  state  or  local  agency  or  instrumentality,   or   any
not-for-profit  philanthropic organization one of whose primary purposes
is providing low or moderate income housing; or
(B) with mortgage insurance by the New York city residential  mortgage
insurance corporation or the state of New York mortgage agency; or
(C) in a neighborhood preservation area, as such areas were designated
by  the  New  York  city  planning commission as of June first, nineteen
hundred eighty-three, provided that such  area  or  part  of  such  area
wherein  the property is located has been approved as provided herein by
the city council of the city of New York. No such area or  part  thereof
shall  be  approved by the city council until notice of the area or part
thereof proposed to be approved is submitted to  every  community  board
with  jurisdiction  over  the  area  or part thereof, and (i) every such
community board has made and submitted to the city council  comments  as
to  the  proposed  approval,  or (ii) forty-five days have elapsed since
such notice  was  submitted  to  such  community  boards,  whichever  is
earlier; and
(D)   pursuant  to  a  program  established  by  the  federal  housing
administration, federal national mortgage association, federal home loan
mortgage corporation or government national mortgage association for the
rehabilitation of existing multiple dwellings  for  persons  of  low  or
moderate   income,   or   a   program  of  mortgage  insurance  for  the
rehabilitation of existing multiple dwellings pursuant  to  section  two
hundred  twenty-three-f  of  the  national  housing act as amended, or a
program  of  mortgage  insurance  established  by  the  federal  housing
administration for the rehabilitation of existing multiple dwellings for
persons  of  low  or moderate income; provided that properties receiving
benefits under such programs are  located  in  a  neighborhood  strategy
area,  as  defined, by the United States department of housing and urban
development, or a neighborhood preservation area,  as  such  areas  were
designated  by  the New York city planning commission, as of June first,
nineteen hundred eighty-three.
(2) alterations or improvements under subparagraphs five  and  six  of
paragraph (a) of subdivision one of this section; or
(2-a)  Conversion  of  buildings  or  structures  to  class A multiple
dwellings pursuant to subparagraph one of paragraph (a)  of  subdivision
one  of  this  section,  where  such  conversions  are  undertaken  by a
not-for-profit philanthropic organization or  undertaken  on  properties
which  receive  mortgage  insurance  from  the New York city residential

mortgage insurance corporation, or state of New  York  mortgage  agency,
provided   that   such   property  is  (i)  located  in  a  neighborhood
preservation area as such areas were designated  by  the  city  planning
commission  on  June first, nineteen hundred eighty-three, and (ii) such
property  has  been  vacant  since  January  first,   nineteen   hundred
eighty-two,  and  (iii)  prior to becoming vacant such property was last
utilized  for  governmental,  educational,  hospital  or  nursing   home
purposes.
(3)  conversions  of residential units qualified for the protection of
article seven-C of the multiple dwelling law under subparagraph  one  of
paragraph (a) of subdivision one of this section.
(b)  Abatement  limitations. The amount of abatement under subdivision
two of this section shall not exceed the certified  reasonable  cost  of
the   conversion,   alteration   or  improvement,  as  determined  under
regulations of the local housing agency  administering  the  local  law,
provided  that  the  amount  of  certified  reasonable cost eligible for
abatement under this section shall not exceed fifteen  thousand  dollars
for  a dwelling unit of three and one-half rooms and a comparable amount
for dwelling units of  other  sizes,  under  regulations  of  the  local
housing  agency,  and  further  provided  that  the  amount of certified
reasonable cost eligible for abatement under  this  section  may  exceed
fifteen  thousand  dollars  or such comparable amount per dwelling unit,
but  not  more  than  twenty-five  percent  above  such   amount,   upon
application  of  the  property  owner and a determination by the housing
agency that:
(1) in the case of a conversion under subparagraph  one  of  paragraph
(a)  of subdivision one of this section, the increased cost is necessary
to comply with applicable law; or
(2) in the case of an alteration or improvement under subparagraph two
of paragraph (a) of subdivision one of this section, the increased  cost
is  necessary  to  eliminate  the  unhealthy  or dangerous conditions or
replace the inadequate and obsolete facilities in a satisfactory manner;
or
(3) in the case of an alteration  or  improvement  under  subparagraph
three of paragraph (a) of subdivision one of this section, the increased
cost is necessary to conserve energy in a satisfactory manner; or
(4)  in  the  case  of an alteration or improvement under subparagraph
four of paragraph (a) of subdivision one of this section, the  increased
cost,  to  the extent such cost is not offset by any and all tax credits
received as a result of the alteration or improvement, is  necessary  to
comply  with  any  provision  of  law  regulating  historic  or landmark
buildings or structures.
(b-1) For the purpose of the abatement limitations  contained  in  the
opening  paragraph  of  paragraph (b) of this subdivision, the number of
rooms in a dwelling unit shall be calculated in  the  following  manner:
Each  dwelling  unit with at least one room which either (1) contains no
cooking facilities and measures at least one hundred fifty square  feet,
or  (2)  contains  cooking  facilities and measures at least two hundred
thirty square feet, shall count as two and one-half rooms.  Every  other
room  in the dwelling unit separated by either walls or doors, including
bedrooms, shall count as an additional  room,  provided,  however,  that
kitchens,  cooking  facilities,  bathrooms, corridors or balconies shall
not count as an additional room. To be included, a room  must  meet  the
requirements  of  habitability  as  provided  in  the  relevant  housing
maintenance code.
(c) Exemption limitations. (1) The increase in assessed  valuation  of
the  real  property  located  in  the  borough  of Manhattan south of or
adjacent to the south side of one hundred tenth  street  resulting  from

the  conversion,  alteration  or  improvement  under  paragraph  (a)  of
subdivision one of this  section,  shall  be  exempt  from  taxation  as
provided   in  this  section,  only  to  the  extent  provided  in  this
subparagraph.  The  amount  of  the increased assessed valuation that is
exempt from taxation shall depend on the amount of  the  total  assessed
valuation  per  dwelling  unit  calculated by dividing the amount of the
total assessed valuation of  the  property,  as  determined  under  this
chapter,  by  the  number  of  dwelling  units  in  the  building  after
completion of the conversion, alteration or improvement. The  amount  of
increased  assessed  valuation  that  will  be  exempt from taxation for
buildings with total assessed valuation per dwelling unit of  less  than
thirty-eight  thousand  dollars  shall  be  calculated  pursuant  to the
following formula: (A) any portion of total assessed  valuation  of  the
property  attributable  to  the first eighteen thousand dollars of total
assessed valuation per  dwelling  unit,  to  the  extent  it  represents
increased  assessed  valuation, shall be one hundred percent exempt; (B)
any portion of total assessed valuation attributable to  the  next  four
thousand  dollars  of total assessed valuation per dwelling unit, to the
extent it represents increased assessed valuation, shall be seventy-five
percent exempt; (C) any portion of total assessed valuation attributable
to the next four  thousand  dollars  of  total  assessed  valuation  per
dwelling unit, to the extent it represents increased assessed valuation,
shall  be  fifty  percent  exempt;  (D)  any  portion  of total assessed
valuation attributable to  the  next  four  thousand  dollars  of  total
assessed  valuation  per  dwelling  unit,  to  the  extent it represents
increased assessed valuation, shall be twenty-five percent  exempt;  (E)
any  portion  of total assessed valuation attributable to the next eight
thousand dollars of total assessed valuation per dwelling unit,  to  the
extent  it  represents  increased  assessed valuation per dwelling unit,
shall be fully taxable. Property with a  total  assessed  valuation  per
dwelling  unit  of  thirty-eight  thousand  dollars or more shall not be
eligible for a tax exemption under this section.
(2) In calculating the amount of  increased  assessed  valuation  that
will be exempt from taxation pursuant to the formula in subparagraph one
of this paragraph, the full amount of total assessed valuation that does
not  represent  increased  assessed  valuation  shall be applied in such
formula prior to the inclusion  of  any  amount  of  increased  assessed
valuation.
(3)  Where  the  real  property  is  occupied  in part for residential
purposes  and  in  part  for  non-residential  purposes,  the   assessed
valuation  of  the property shall be appropriately allocated between the
residential  and  non-residential  portions.  In  computing  the   total
assessed  valuation  per  dwelling  unit  under this paragraph, only the
amount of valuation so allocated to the  residential  portion  shall  be
considered.
(4)  Commencing with the assessment roll for the year nineteen hundred
eighty-four, where there has been a change in the  level  of  assessment
from  the  assessment  roll  of  the  prior year of properties receiving
exemptions  under  this  section,  the  local  agency  responsible   for
assessment of real property may petition the commissioner to certify the
percentage  of  such  change  for  the purposes of this section. In such
petition,  the  local  agency  shall  submit  such  information  as  the
commissioner  shall  require  in order to certify the percentage of such
change. The commissioner may also make such a certification on  its  own
motion.  Upon  receipt  of such certification from the commissioner, the
local housing agency may modify the  dollar  values  of  total  assessed
valuation  per  dwelling  unit  in subparagraph one of this paragraph to
reflect the percentage change in the level of  assessment  as  shown  in

such  certification.  As  used in this subparagraph, the term "change in
the level of assessment" means the  net  increase  or  decrease  in  the
assessed  valuation  of  properties  in the assessing unit that received
exemptions  under  this section in the current year as compared to those
that received exemptions under this section  in  the  prior  year  as  a
result  of  assessing such properties at a higher or lower ratio of full
value.
(5) (A) Notwithstanding the provisions of  subparagraph  one  of  this
paragraph, the local housing agency may reduce or remove the limitations
on  the  exemption  from  taxation  provided  in  such subparagraph with
respect to a particular property undergoing alteration  or  improvement,
upon application of the property owner and a determination by the agency
that:
(i)  The  increased benefit will increase the number of dwelling units
or improve the quality of dwelling units  that  will  be  affordable  to
persons of low or moderate income; and
(ii)  The  increased  benefit is necessary to make economically viable
the increase in the number of  dwelling  units  or  improvement  in  the
quality  of  dwelling units that will be affordable to persons of low or
moderate income.
(B) As used in this subparagraph, the term persons of low or  moderate
income shall be persons who would qualify for housing subsidies pursuant
to  section  two  hundred  thirty-five  of  the national housing act, as
amended, at one hundred thirty-five percent of  the  income  limitations
provided herein.
(C)  Upon  receiving  an application under this subparagraph in proper
form, the local housing  agency  shall  immediately  submit  it  to  the
community board for the area in which the project is located, which may,
within  forty-five days of receiving it and after a public hearing, make
recommendations to the agency as to the application.  The  agency  shall
act  on  the  application  within  sixty  days  of receiving it from the
property owner in proper form, but not before expiration of the time for
the community board to make its recommendations, unless  the  board  has
acted sooner.
(d)  The local housing agency may set forth preliminarily the terms of
a determination under paragraph (b) or (c) of this subdivision prior  to
the  commencement of the conversion, alteration or improvement. Any such
determination shall take effect after completion of the work.
(e)  Publication  of  local   housing   agency   determinations.   Any
determination of the local housing agency to increase an abatement under
paragraph  (b)  of this subdivision or to reduce or remove the exemption
limitations under paragraph (c) of  this  subdivision  shall  state  the
basis  for the determination and the data on which the determination was
based. Such determination shall be published in the official publication
of the city, or if no  such  publication  exists  in  a  newspaper  with
general  circulation  in  the  city, for five consecutive days after the
determination is rendered.
(f) Proration of assessed valuation. Notwithstanding the provisions of
paragraph (b) of subdivision nine of this  section,  the  provisions  of
this  paragraph  shall  apply  to  changes in assessments resulting from
conversion, alterations or improvements which are  not  subject  to  the
abatement  or  exemption  limitations  of paragraphs (b) and (c) of this
subdivision. During the period of such exemptions the assessment on  any
such   land  and  dwelling  after  such  alterations  and  improvements,
exclusive of the increase in valuation which is subject to exemption  in
full  or proportionally under subdivision one of this section, shall not
exceed the valuation of the previously existing  dwelling  appearing  on
the assessment rolls after the taxable status date immediately preceding

the  commencement of such alterations and improvements plus the value of
the land, any improvements other than those made under the provisions of
this section and the proportion of increased assessed valuation that  is
not  exempt  from  taxation  under  this section, which proportion shall
remain constant during the term of the exemption. Where  the  alteration
or  improvement  qualified  under  subparagraph  two of paragraph (a) of
subdivision  two  of  this  section  or  under  clause  (A)  or  (B)  of
subparagraph  one  of  paragraph  (a) of this subdivision, the exemption
shall also include an exemption from taxation  for  local  purposes  for
twelve  years upon that portion of the assessment, if any, which exceeds
the transition assessment, as defined  in  subdivision  two  of  section
eighteen  hundred  five  of  this  chapter,  in  effect  at  the time of
commencement of the exemption hereunder.
12. Harassment. (a) The provisions of this subdivision  apply  to  and
are additional requirements for claiming or receiving:
(1) any tax exemption under this section; or
(2)   any  tax  abatement  under  this  section  where  the  certified
reasonable cost per dwelling  unit  of  the  conversion,  alteration  or
improvement  (including  the  cost  of  any  conversion,  alteration  or
improvement for which an abatement was approved within four years  prior
to  commencement  of  the conversion, alteration or improvement) exceeds
seven thousand five hundred dollars.
(b) The owner of the property shall, not less than thirty days  before
the   commencement   of   the   conversion,  alteration  or  improvement
(hereinafter referred to as the "cut-off date"),  file  with  the  local
housing  agency  administering the local law, an affidavit or, where any
information referred to in subparagraph one of  this  paragraph  changes
prior  to  applying  for  or claiming any benefit under this section, an
amending affidavit, setting forth the following information:
(1) every owner of record and owner of a substantial interest  in  the
property  or  entity  owning  the property or sponsoring the conversion,
alteration or improvement;
(2) a statement that none of such persons had, within the  five  years
prior  to  the  cut-off  date, been found to have harassed or unlawfully
evicted tenants by judgment  or  determination  of  a  court  or  agency
(including   a   non-governmental   agency   having   appropriate  legal
jurisdiction) under the penal law, any state  or  local  law  regulating
rents  or  any  state  or local law relating to harassment of tenants or
unlawful eviction; and
(3) any change in the information required to be set forth.
(c)  No  conversion,  alteration  or  improvement  subject   to   this
subdivision  shall  be eligible for tax exemption or tax abatement under
this section where:
(1) any affidavit required under this subdivision has not been  filed;
or
(2)  any  such  affidavit  contains  a  willful  misrepresentation  or
omission of any material fact; or
(3) any person referred to in subparagraph one  of  paragraph  (b)  of
this  subdivision  has been found to have harassed or unlawfully evicted
tenants as described in that paragraph, until and unless the finding  is
reversed  on  appeal,  provided  that any such finding after the cut-off
date shall not apply to or affect any tax abatement or exemption for the
conversion, alteration or improvement covered by the affidavit.
(d) The local housing agency administering  this  law  and  the  local
government  agency  responsible  for  real property tax assessment shall
maintain a list of affidavits as described  in  paragraph  (b)  of  this
subdivision.  Each  agency  shall  review that list with respect to each
application or claim for benefits subject to this subdivision.
(e) "Substantial interest" as used in subparagraph  one  of  paragraph
(b)  of  this subdivision shall mean ownership of an interest of ten per
centum or more  in  the  property  or  entity  owning  the  property  or
sponsoring the conversion, alteration or improvement.
(f)  Where  the  conversion,  alteration  or  improvement is commenced
before August first, nineteen hundred  eighty-three,  the  cut-off  date
shall  be  as  set  forth in this subdivision, but no affidavit shall be
required to be filed until thirty days after the effective date of  this
subdivision.
13.  Additional  limitation.  The  benefits  of this section shall not
apply to any conversion of or alteration or improvement to any  class  B
multiple  dwelling or class A multiple dwelling used in whole or in part
for single room occupancy, regardless  of  the  status  or  use  of  the
building  after  the  conversion,  alteration or improvement unless such
conversion,  alteration  or  improvement  is  carried   out   with   the
substantial  assistance  of grants, loans or subsidies from any federal,
state or local agency or instrumentality.
14. Conversion of properties to residential use. The benefits of  this
section shall not apply to any conversion of property to residential use
where  the  conversion  was contrary to the applicable zoning resolution
and was permitted only by virtue of a variance as  to  use,  unless  the
local  law  is  amended  to  explicitly  provide  that benefits shall be
available in such cases. The provisions of this subdivision do not apply
to conversions of residential units  qualified  for  the  protection  of
article  seven-C  of the multiple dwelling law under subparagraph one of
paragraph (a) of subdivision one of this section.
15. Authority of city to limit local  law.  Where  a  city  enacts  or
amends a local law under this section, the local law may restrict, limit
or  condition the eligibility, scope or amount of the benefits under the
local law in any manner, provided that  the  local  law  may  not  grant
benefits beyond those provided in this section.
16.  Institutional lenders; cost certification. The rules of the local
housing agency administering such local  law  or  ordinance  shall  make
provision  for  circumstances  in which an institutional mortgage lender
(as defined in such rules) which has provided financing for  alterations
or improvements to a building or structure and has become a successor in
interest  (as  defined  in  such  rules)  to  the original owner of such
building  or  structure,  after  diligent  efforts  to  obtain  original
contracts,  checks and other records normally reviewed by such agency to
verify claimed costs, is unable to obtain part or all of  such  records.
Under such circumstances the rules shall permit substitution in whole or
in  part,  as  the case may be, of documentation certified by the lender
showing the amounts advanced by the lender pursuant to the mortgage loan
to finance such alterations  or  improvements,  along  with  such  other
documentation as the agency may require.
17.  (a)  For  purposes of this subdivision, "substantial governmental
assistance" shall mean:
(i) grants, loans or subsidies from any federal, state or local agency
or instrumentality in furtherance of a program for  the  development  of
affordable  housing  approved  by  the  local housing agency, including,
without limitation, financing or insurance provided by the state of  New
York mortgage agency of the New York city residential mortgage insurance
corporation; or
(ii)   a   written   agreement  between  a  housing  development  fund
corporation and the local housing agency limiting the incomes of persons
entitled to purchase shares or rent housing accommodations therein.
(b) Any local law or ordinance providing for benefits pursuant to this
section must also provide the following  with  respect  to  conversions,

alterations or improvements completed on or after December thirty-first,
two thousand eleven:
(i)  except  as  otherwise  provided  in  this section with respect to
multiple dwellings, buildings and structures owned and  operated  either
by  limited-profit housing companies established pursuant to article two
of  the  private  housing  finance  law   or   redevelopment   companies
established pursuant to article five of the private housing finance law,
or with respect to a group of multiple dwellings that was developed as a
planned  community  and  that  is  owned  as  two  separate condominiums
containing a total of ten thousand or more dwelling units, any  multiple
dwelling,  building  or  structure  that  is owned as a cooperative or a
condominium that has an average assessed value per  dwelling  unit  that
exceeds  the  assessed valuation limitation as provided in paragraph (c)
of this subdivision shall only be eligible  for  such  benefits  if  the
alterations  or  improvements for which such multiple dwelling, building
or structure has applied for the benefits pursuant to this section  were
carried out with substantial governmental assistance; and
(ii)  no  benefits  pursuant  to this section shall be granted for the
conversion of any non-residential building or structure into a  class  A
multiple   dwelling   unless   such  conversion  was  carried  out  with
substantial governmental assistance.
(c) Assessed value limitation. (i) For final assessment  rolls  to  be
completed prior to two thousand seventeen, the assessed value limitation
shall be thirty thousand dollars.
(ii)  For  the  final  assessment roll to be completed in two thousand
seventeen the assessed value limitation  shall  be  thirty-two  thousand
dollars  increased  by  the  cost-of-living adjustment percentage of two
thousand  seventeen.  For  the  purposes  of   this   computation,   the
cost-of-living  adjustment percentage of two thousand seventeen shall be
equal to the "applicable increase percentage" used by the United  States
commissioner of social security to determine the monthly social security
benefits  payable  in two thousand seventeen to individuals, as provided
by subsection (i) of section four hundred fifteen of title forty-two  of
the United States code.
(iii) For final assessment rolls to be completed in each ensuing year,
the  applicable  assessed  value  limitation,  cost-of-living adjustment
percentage and applicable increase percentage shall all be  advanced  by
one  year, and the assessed valuation limitation shall be the previously
applicable assessed value limitation increased by the new cost-of-living
adjustment percentage. If there should be a year for which there  is  no
applicable  increase  percentage  due  to  a general benefit increase as
defined by subdivision three of subsection (i) of section  four  hundred
fifteen  of  title  forty-two  of the United States code, the applicable
increase percentage for purposes of this computation shall be deemed  to
be  the  percentage  which  would  have  yielded  that  general  benefit
increase.
(iv) Notwithstanding anything to the contrary  contained  herein,  the
assessed  value  limitation  shall not at any time exceed forty thousand
dollars.
18. Any local law or ordinance providing for benefits pursuant to this
section must also provide, with respect to conversions,  alterations  or
improvements  for which application was made after the effective date of
this subdivision, that if such conversions, alterations or  improvements
are  not  completed  on  the  date  upon which such local housing agency
inspects the items of  work  claimed  in  such  application,  the  local
housing  agency  shall require the applicant to pay two times the actual
cost for any additional inspections needed to verify the  completion  of
such conversion, alteration or improvement.
19.  The  revocation  of  benefits  granted  to any multiple dwelling,
building or structure pursuant to this  section  shall  not  exempt  any
dwelling unit therein from continued compliance with the requirements of
this  section  or  of  any local law or ordinance providing for benefits
pursuant to this section.
20.  Notwithstanding  the  provisions of any general, special or local
law or any local ordinance  providing  for  benefits  pursuant  to  this
section  the  department may require that the applications for exemption
or abatement under this section that  are  filed  on  or  after  a  date
specified in such local law or ordinance be filed electronically.
21. (a) Definitions. For the purposes of this subdivision:
(1) "Affordable rent" shall mean the maximum rent within the marketing
band  that  is  allowed  for  an  affordable rental unit as such rent is
established by the local housing agency.
(2) "Affordable rental unit" shall mean a dwelling unit in an eligible
rental building  that,  as  of  the  filing  of  an  application  for  a
certificate  of  eligibility and reasonable cost, has a rent at or below
the affordable rent.
(3) "Certificate of eligibility and  reasonable  cost"  shall  mean  a
document  issued  by  the  local  housing agency that establishes that a
property is eligible for rehabilitation program benefits and sets  forth
the  certified  reasonable  cost  of the eligible construction for which
such benefits shall be received.
(4) "Certified reasonable cost schedule" shall mean a table  providing
maximum  dollar  limits  for  specified  alterations  and  improvements,
established, and updated as necessary, by the local housing agency.
(5) "Checklist" shall mean a document that the  local  housing  agency
issues  requesting  additional  information  or  documentation  that  is
necessary for further assessment of an application for a certificate  of
eligibility  and  reasonable  cost  where such application contained all
information and documentation required at the initial filing.
(6)  "Commencement  date"  shall  mean,  with  respect   to   eligible
construction,  the  date  on which any physical operation undertaken for
the purpose of performing such eligible construction lawfully begins.
(7)  "Completion  date"  shall  mean,   with   respect   to   eligible
construction, the date on which:
(A)  every  physical  operation  undertaken  for  the  purpose  of all
eligible construction has concluded; and
(B) all such eligible construction has been completed to a  reasonable
and  customary  standard that renders such eligible construction capable
of use  for  the  purpose  for  which  such  eligible  construction  was
intended.
(8)  "Dwelling  unit"  shall  mean  any residential accommodation in a
class A multiple dwelling that:
(A) is arranged, designed, used or intended for use  by  one  or  more
persons living together and maintaining a common household;
(B) contains at least one room; and
(C)  contains  within  such  accommodation lawful sanitary and kitchen
facilities reserved for its occupants.
(9) "Eligible building" shall mean an  eligible  rental  building,  an
eligible  homeownership building, or an eligible regulated homeownership
building, provided that such building contains three  or  more  dwelling
units.
(10) "Eligible construction" shall mean alterations or improvements to
an eligible building that:
(A)  are  specifically  identified  on  the  certified reasonable cost
schedule;
(B) meet the minimum scope of work threshold;
(C) have a completion  date  that  is  after  June  twenty-ninth,  two
thousand twenty-two and prior to June thirtieth, two thousand twenty-six
and  that  is not more than thirty months after their commencement date;
and
(D)  are  not  attributable  to  any  increased  cubic content in such
eligible building.
(11) "Eligible homeownership building" shall mean an existing building
that:
(A) is  a  class  A  multiple  dwelling  operated  as  condominium  or
cooperative housing;
(B) is not operating in whole or in part as a hotel; and
(C)  has an average assessed valuation, including the valuation of the
land, that as of the commencement date does not exceed the homeownership
average assessed valuation limitation.
(12)  "Eligible  regulated  homeownership  building"  shall  mean   an
existing building that is a class A multiple dwelling owned and operated
by either:
(A)  a mutual company that continues to be organized and operated as a
mutual company and that has entered into and recorded a  mutual  company
regulatory agreement; or
(B)  a mutual redevelopment company that continues to be organized and
operated as a mutual redevelopment company and that has entered into and
recorded a mutual redevelopment company regulatory agreement.
(13) "Eligible rental building" shall mean an existing building that:
(A) is a class A multiple dwelling in which all of the dwelling  units
are operated as rental housing;
(B) is not operating in whole or in part as a hotel; and
(C) satisfies one of the following conditions:
(i) not less than fifty percent of the dwelling units in such building
are affordable rental units;
(ii)  such  building is owned and operated by a limited-profit housing
company; or
(iii) such building  is  the  recipient  of  substantial  governmental
assistance.
(14) "Existing building" shall mean an enclosed structure which:
(A) is permanently affixed to the land;
(B) has one or more floors and a roof;
(C) is bounded by walls;
(D)  has  at  least  one  principal  entrance  utilized for day-to-day
pedestrian ingress and egress;
(E) has a certificate of occupancy or equivalent document that  is  in
effect prior to the commencement date; and
(F)  exclusive of the land, has an assessed valuation of more than one
thousand  dollars  for  the  fiscal  year  immediately   preceding   the
commencement date.
(15)  "Homeownership average assessed valuation limitation" shall mean
an  average  assessed  valuation  of  forty-five  thousand  dollars  per
dwelling unit.
(16)  "Limited-profit  housing company" shall have the same meaning as
"company" set forth in section twelve of  the  private  housing  finance
law.
(17)  "Market  rental  unit" shall mean a dwelling unit in an eligible
rental building other than an affordable rental unit.
(18) "Marketing band" shall mean maximum  rent  amounts  ranging  from
twenty percent of eighty percent of the area median income, adjusted for
family  size,  to  thirty  percent  of eighty percent of the area median
income, adjusted for family size.
(19) "Minimum scope of work threshold" shall mean a  total  amount  of
certified  reasonable  cost  established by rules and regulations of the
local housing agency, provided that such amount shall be  no  less  than
one thousand five hundred dollars for each dwelling unit in existence on
the completion date.
(20)  "Multiple  dwelling" shall have the meaning set forth in section
four of the multiple dwelling law.
(21) "Mutual company" shall have the  meaning  set  forth  in  section
twelve of the private housing finance law.
(22)  "Mutual  company  regulatory agreement" shall mean a binding and
irrevocable agreement between a mutual company and the  commissioner  of
housing,  the  mutual  company  supervising  agency,  the  New York city
housing development corporation, or the New York state  housing  finance
agency  prohibiting  the  dissolution  or  reconstitution of such mutual
company pursuant to section thirty-five of the private  housing  finance
law   for   not  less  than  fifteen  years  from  the  commencement  of
rehabilitation program benefits for  the  existing  building  owned  and
operated by such mutual company.
(23)  "Mutual company supervising agency" shall have the same meaning,
with respect to any mutual company, as "supervising agency" set forth in
section two of the private housing finance law.
(24) "Mutual redevelopment company" shall have  the  same  meaning  as
"mutual" when applied to a redevelopment company as set forth in section
one hundred two of the private housing finance law.
(25)  "Mutual redevelopment company regulatory agreement" shall mean a
binding and irrevocable agreement between a mutual redevelopment company
and the commissioner of housing, the redevelopment  company  supervising
agency,  the  New  York city housing development corporation, or the New
York  state  housing  finance  agency  prohibiting  the  dissolution  or
reconstitution  of such mutual redevelopment company pursuant to section
one hundred twenty-three of the private housing finance  law  until  the
earlier  of:  (A)  fifteen years from the commencement of rehabilitation
program benefits for the existing building owned and  operated  by  such
mutual redevelopment company; or (B) the expiration of any tax exemption
granted  to  such  mutual  redevelopment company pursuant to section one
hundred twenty-five of the private housing finance law.
(26) "Redevelopment company" shall  have  the  meaning  set  forth  in
section one hundred two of the private housing finance law.
(27)  "Redevelopment  company  supervising agency" shall have the same
meaning, with respect to  any  redevelopment  company,  as  "supervising
agency"  set  forth  in  section  one hundred two of the private housing
finance law.
(28) "Rehabilitation program benefits" shall mean  abatement  of  real
property taxes pursuant to this subdivision.
(29) "Rent regulation" shall mean, collectively, the emergency housing
rent  control law, any local law enacted pursuant to the local emergency
housing rent control act, the rent stabilization law of nineteen hundred
sixty-nine, the  rent  stabilization  code,  and  the  emergency  tenant
protection  act  of  nineteen  seventy-four,  all as in effect as of the
effective date of this subdivision, or as any such  statute  is  amended
thereafter,   together   with  any  successor  statutes  or  regulations
addressing substantially the same subject matter.
(30) "Restriction period" shall mean, notwithstanding any  termination
or  revocation  of rehabilitation program benefits prior to such period,
fifteen years from the initial receipt of  rehabilitation  benefits,  or
such  additional period of time as may be imposed pursuant to clause (A)
of subparagraph five of paragraph (e) of this subdivision.
(31) "Substantial governmental assistance" shall mean  grants,  loans,
or  subsidies  from  any  federal,  state, or local government agency or
instrumentality in furtherance of  a  program  for  the  development  of
affordable  housing  approved by the local housing agency, provided that
such  grants,  loans,  or  subsidies  are  provided in accordance with a
regulatory agreement entered into with such  agency  or  instrumentality
that  is  in  effect  as  of  the  filing  date of the application for a
certificate of eligibility and reasonable cost.
(32) "Substantial interest" shall mean an ownership  interest  of  ten
percent or more.
(b) Abatement. Notwithstanding the provisions of any other subdivision
of this section or of any general, special or local law to the contrary,
any  city  to  which  the  multiple  dwelling  law is applicable, acting
through its local legislative body or other governing agency, is  hereby
authorized  and  empowered,  until  and  including  June  thirtieth, two
thousand twenty-five, to  adopt  and  amend  local  laws  or  ordinances
allowing for an abatement of real property taxes on an eligible building
in which eligible construction has been completed, provided that:
(1)  Such  abatement shall not exceed seventy percent of the certified
reasonable cost of the eligible construction, as determined under  rules
and regulations of the local housing agency;
(2) Such abatement shall not be effective for more than twenty years;
(3)  The  annual  abatement  of  real  property taxes on such eligible
building shall not exceed eight  and  one-third  percent  of  the  total
certified reasonable cost of such eligible construction;
(4)  The  annual  abatement  of  real  property taxes on such eligible
building in any consecutive twelve-month period shall in no event exceed
the amount of real property taxes payable in  such  twelve-month  period
for  such  building,  provided,  however,  that such abatement shall not
exceed fifty percent of the amount of real  property  taxes  payable  in
such twelve-month period for any of the following:
(A)  an  eligible  rental  building  owned by a limited-profit housing
company or a redevelopment company;
(B) an eligible homeownership building; and
(C) an eligible regulated homeownership building; and
(5) Such abatement shall become effective  beginning  with  the  first
quarterly  tax  bill  immediately  following the date of issuance of the
certificate of eligibility and reasonable cost.
(c) Authority of city to adopt rules and regulations. Any  such  local
law  or ordinance shall authorize the adoption of rules and regulations,
not inconsistent with this subdivision, by the local housing agency  and
any  other  local  agency  necessary  for  the  implementation  of  this
subdivision.
(d) Application. (1) Any such local law  or  ordinance  shall  require
that an application for a certificate of eligibility and reasonable cost
pursuant to this subdivision be made after the completion date and on or
before  the  later  of  (A)  four months from the effective date of such
local law or ordinance; or (B) four months from such completion date.
(2)  Such  application  shall  include  evidence  of  eligibility  for
rehabilitation program benefits and evidence of reasonable cost as shall
be  satisfactory  to the local housing agency including, but not limited
to, evidence showing the cost of eligible construction.
(3) The local housing agency shall require a non-refundable filing fee
that shall be paid by a certified check  or  cashier's  check  upon  the
filing of an application for a certificate of eligibility and reasonable
cost.  Such fee shall be (A) one thousand dollars, plus (B) seventy-five
dollars for each dwelling unit in excess of six dwelling  units  in  the
eligible building that is the subject of such application.
(4)  Any  application that is filed pursuant to this paragraph that is
missing any of the information and  documentation  required  at  initial
filing  by  such local law or ordinance and any rules and regulations of
the  local  housing  agency  shall  be  denied,  provided  that  a   new
application  for  the  same  eligible  construction, together with a new
non-refundable filing fee, may be filed within fifteen days of the  date
of  issuance  of such denial. If such second application is also missing
any such required information and documentation, it shall be denied  and
no  further  applications  for  the  same eligible construction shall be
permitted.
(5) The failure of an applicant to respond  to  any  checklist  within
thirty  days  of  the  date  of its issuance by the local housing agency
shall result in denial of such application, and no further  applications
for the same eligible construction shall be permitted. The local housing
agency  shall  issue  not more than three checklists per application. An
application for a certificate of eligibility and reasonable  cost  shall
be denied when the local housing agency does not have a sufficient basis
to  issue  a  certificate  of  eligibility and reasonable cost after the
timely response of an applicant to the third checklist  concerning  such
application.  After  the  local housing agency has denied an application
for the reason described in the preceding sentence,  such  agency  shall
permit no further applications for the same eligible construction.
(6)  An  application  for  a certificate of eligibility and reasonable
cost shall also include an affidavit of no harassment.
(A) Such affidavit shall set forth the following information:
(i) the name of every owner of  record  and  owner  of  a  substantial
interest in the eligible building or entity owning the eligible building
or sponsoring the eligible construction; and
(ii)  a statement that none of such persons had, within the five years
prior to the completion date, been found to have harassed or  unlawfully
evicted  tenants  by  judgment  or  determination  of a court or agency,
including   a   non-governmental   agency   having   appropriate   legal
jurisdiction  under  the  penal  law,  any state or local law regulating
rents or any state or local law relating to  harassment  of  tenants  or
unlawful eviction.
(B)  No  eligible building shall be eligible for an abatement pursuant
to paragraph (b) of this subdivision where:
(i) any affidavit required under this subparagraph has not been filed;
or
(ii) any  such  affidavit  contains  a  willful  misrepresentation  or
omission of any material fact; or
(iii)  any  owner  of record or owner of a substantial interest in the
eligible building or entity owning the eligible building  or  sponsoring
the  eligible  construction has been found, by judgment or determination
of a  court  or  agency,  including  a  non-governmental  agency  having
appropriate  legal  jurisdiction under the penal law, any state or local
law regulating rents or any state or local law relating to harassment of
tenants or unlawful eviction, to have, within the five  years  prior  to
the  completion  date, harassed or unlawfully evicted tenants, until and
unless the finding is reversed on appeal.
(C) Notwithstanding the provisions of any general,  special  or  local
law   to   the   contrary,   the  corporation  counsel  or  other  legal
representative of a city having a population of one million or  more  or
the  district  attorney  of  any  county,  may  institute  an  action or
proceeding  in  any  court  of  competent  jurisdiction  that   may   be
appropriate  or  necessary  to  determine whether any owner of record or
owner of a substantial interest  in  the  eligible  building  or  entity
owning the eligible building or sponsoring the eligible construction has

harassed   or   unlawfully   evicted   tenants   as  described  in  this
subparagraph.
(7)  Notwithstanding  the  provisions of any general, special or local
law to the contrary, the local housing agency may require by  rules  and
regulations  that  an  application  for a certificate of eligibility and
reasonable cost be filed electronically.
(e) Additional requirements for an eligible rental building other than
one owned and operated by a limited-profit  housing  company.  Any  such
local  law  or  ordinance  shall, in addition to all other conditions of
eligibility for  rehabilitation  program  benefits  set  forth  in  this
subdivision,  require  that  an eligible rental building, other than one
owned and operated by a limited-profit housing company, also comply with
all provisions of this  paragraph.  Notwithstanding  the  foregoing,  an
eligible   rental   building   that  is  the  recipient  of  substantial
governmental assistance  shall  not  be  required  to  comply  with  the
provisions of subparagraph two of this paragraph.
(1)  Notwithstanding any provision of rent regulation to the contrary,
any market rental unit within such eligible rental building  subject  to
rent  regulation  as  of  the  filing  date  of  the  application  for a
certificate of eligibility and reasonable cost and any affordable rental
unit within such eligible rental  building  shall  be  subject  to  rent
regulation  until such unit first becomes vacant after the expiration of
the restriction period at which time  such  unit,  unless  it  would  be
subject to rent regulation for reasons other than the provisions of this
subdivision,  shall  be  deregulated, provided, however, that during the
restriction period, no exemption or exclusion from  any  requirement  of
rent regulation shall apply to such dwelling units.
(2)  Additional  requirements  for an eligible rental building that is
not a recipient of substantial governmental assistance.
(A) Not less than fifty percent of the dwelling units in such eligible
rental building shall be designated as affordable rental units.
(B) The owner of such eligible rental building shall  ensure  that  no
affordable  rental  unit  is  held  off  the market for a period that is
longer than reasonably necessary.
(C) The owner  of  such  eligible  rental  building  shall  waive  the
collection of any major capital improvement rent increase granted by the
New  York  state  division  of housing and community renewal pursuant to
rent regulation that is attributable to eligible construction for  which
such  eligible rental building receives rehabilitation program benefits,
and shall file a declaration with the New York state division of housing
and community renewal providing such waiver.
(D) An affordable rental unit shall not  be  rented  on  a  temporary,
transient  or  short-term  basis. Every lease and renewal thereof for an
affordable rental unit shall be for a term of one or two years,  at  the
option   of  the  tenant,  and  shall  include  a  notice  in  at  least
twelve-point type informing such tenant of their rights pursuant to this
subdivision, including  an  explanation  of  the  restrictions  on  rent
increases that may be imposed on such affordable rental unit.
(E)  The  local  housing agency may establish by rules and regulations
such requirements  as  the  local  housing  agency  deems  necessary  or
appropriate  for designating affordable rental units, including, but not
limited to, designating the unit mix and  distribution  requirements  of
such affordable rental units in an eligible building.
(3)  The owner of such eligible rental building shall not engage in or
cause any harassment of the tenants of such eligible rental building  or
unlawfully evict any such tenants during the restriction period.
(4)  No  dwelling  units within such eligible rental building shall be
converted to cooperative or condominium ownership during the restriction
period.
(5)  Any  non-compliance  of  an  eligible  rental  building  with the
provisions of this paragraph shall permit the local  housing  agency  to
take the following action:
(A) extend the restriction period;
(B)  increase  the  number of affordable rental units in such eligible
rental building;
(C) impose a penalty of not more than  the  product  of  one  thousand
dollars  per instance of non-compliance and the number of dwelling units
contained in such eligible rental building; and
(D)  terminate  or  revoke  any  rehabilitation  program  benefits  in
accordance with paragraph (m) of this subdivision.
(f)  Compliance  with  applicable law. Any such local law or ordinance
may also provide that  rehabilitation  program  benefits  shall  not  be
allowed  for  any  eligible  building  unless  and  until  such eligible
building complies with all applicable provisions of law.
(g) Implementation of rehabilitation program benefits.  Upon  issuance
of  a  certificate  of  eligibility  and  reasonable cost and payment of
outstanding fees, the  local  housing  agency  shall  be  authorized  to
transmit  such  certificate  of  eligibility  and reasonable cost to the
local agency responsible for real property tax assessment. Upon  receipt
of  a  certificate  of eligibility and reasonable cost, the local agency
responsible for real property tax assessment shall certify the amount of
taxes to be abated pursuant to paragraph (b)  of  this  subdivision  and
pursuant to such certificate of eligibility and reasonable cost provided
by the local housing agency.
(h)  Outstanding  taxes  and  charges. Any such local law or ordinance
shall also provide that rehabilitation program  benefits  shall  not  be
allowed for an eligible building in either of the following cases:
(1) there are outstanding real estate taxes or water and sewer charges
or  payments  in lieu of taxes that are due and owing as of the last day
of the tax period preceding the date of the receipt of  the  certificate
of  eligibility  and reasonable cost by the local agency responsible for
real property tax assessment; or
(2) real estate taxes or water and  sewer  charges  due  at  any  time
during  the  authorized term of such benefits remain unpaid for one year
after the same are due and payable.
(i) Additional limitations on  eligibility.  Any  such  local  law  or
ordinance shall also provide that:
(1)  rehabilitation  program  benefits  shall  not  be allowed for any
eligible building receiving tax exemption or abatement concurrently  for
rehabilitation or new construction under any other provision of state or
local  law  or ordinance with the exception of any eligible construction
to an eligible building receiving a tax exemption or abatement under the
provisions of the private housing finance law;
(2) rehabilitation program benefits shall not be allowed for any  item
of  eligible  construction  in  an  eligible  building  if such eligible
building is receiving tax exemption or  abatement  for  the  same  or  a
similar  item  of  eligible construction as of the December thirty-first
preceding the date of application for a certificate of  eligibility  and
reasonable cost for such rehabilitation program benefits;
(3)  where the eligible construction includes or benefits a portion of
an eligible building that is not occupied  for  dwelling  purposes,  the
assessed  valuation  of  such  eligible  building  and  the  cost of the
eligible  construction  shall  be  apportioned  so  that  rehabilitation

program  benefits  shall  not be provided for eligible construction made
for other than dwelling purposes; and
(4)  rehabilitation program benefits shall not be applied to abate the
taxes upon the land portion of real property, which shall continue to be
taxed based upon the assessed valuation of the land and  the  applicable
tax rate at the time such taxes are levied.
(j)  Re-inspection penalty. Any such local law or ordinance shall also
provide that if the local housing  agency  cannot  verify  the  eligible
construction  claimed  by  an applicant upon the first inspection by the
local housing agency of the eligible building, such applicant  shall  be
required  to  pay ten times the actual cost of any additional inspection
needed to verify such eligible construction.
(k) Strict liability for inaccurate applications. Any such  local  law
or  ordinance  shall  also  provide  that  if  the  local housing agency
determines that an application for  a  certificate  of  eligibility  and
reasonable  cost  contains  a  material  misstatement of fact, the local
housing agency may reject such application and bar the submission of any
other application pursuant to this  subdivision  with  respect  to  such
eligible  building  for a period not to exceed three years. An applicant
shall not be relieved from liability under  this  paragraph  because  it
submitted  its application under a mistaken belief of fact. Furthermore,
any person or entity that files more than  six  applications  containing
such  a  material  misstatement  of  fact within any twelve-month period
shall be barred from submitting any new application  for  rehabilitation
program  benefits on behalf of any eligible building for a period not to
exceed five years.
(l) Investigatory authority. Any such local  law  or  ordinance  shall
also  allow  the local housing agency to require such certifications and
consents necessary to access records, including other  tax  records,  as
may  be  deemed  appropriate  to enforce the eligibility requirements of
this subdivision. Any such local law or ordinance shall further  provide
that,  for  purposes  of  determining  and  certifying  eligibility  for
rehabilitation program benefits and the reasonable cost of any  eligible
construction, the local housing agency shall be authorized to:
(1)  administer  oaths  to  and  take  the  testimony  of  any person,
including, but not limited to, the owner of such eligible building;
(2) issue subpoenas requiring the attendance of such persons  and  the
production of any bills, books, papers or other documents as it may deem
necessary;
(3)  make preliminary estimates of the maximum reasonable cost of such
eligible construction;
(4) establish maximum allowable costs of specified units, fixtures  or
work in such eligible construction;
(5)  require  the  submission  of  plans  and  specifications  of such
eligible construction before the commencement thereof;
(6) require physical access to inspect the eligible building; and
(7) on an annual basis, require  the  submission  of  leases  for  any
dwelling  unit  in  a  building granted a certificate of eligibility and
reasonable cost.
(m) Termination or revocation. Any such local law or  ordinance  shall
provide  that failure to comply with the provisions of this subdivision,
any such local law or ordinance, any rules and  regulations  promulgated
thereunder,  or  any  mutual  company  regulatory  agreement  or  mutual
redevelopment company regulatory agreement entered into thereunder,  may
result  in  termination  or  revocation  of  any  rehabilitation program
benefits retroactive to the commencement thereof.  Such  termination  or
revocation  shall  not  exempt  such  eligible  building  from continued
compliance with the requirements of this subdivision, such local law  or

ordinance,   such   rules  and  regulations,  and  such  mutual  company
regulatory  agreement  or  mutual   redevelopment   company   regulatory
agreement.
(n)  Criminal  liability  for unauthorized uses. Any such local law or
ordinance shall also provide that in the event  that  any  recipient  of
rehabilitation  program benefits uses any dwelling unit in such eligible
building in violation of the requirements of such local law or ordinance
as adopted pursuant to this subdivision and any  rules  and  regulations
promulgated  pursuant  thereto,  such  recipient  shall  be guilty of an
unclassified misdemeanor punishable by a fine in an amount equivalent to
double the value of the gain of such recipient from such unlawful use or
imprisonment for not more than ninety days, or both.
(o) Private right of  action.  Any  prospective,  present,  or  former
tenant   of   an  eligible  rental  building  may  sue  to  enforce  the
requirements and prohibitions of this subdivision, any such local law or
ordinance, or any rules and regulations promulgated thereunder,  in  the
supreme  court  of  New  York. Any such individual harmed by reason of a
violation of such requirements and prohibitions may sue therefor in  the
supreme  court  of  New  York on behalf of himself or herself, and shall
recover threefold the damages  sustained  and  the  cost  of  the  suit,
including  a reasonable attorney's fee. The local housing agency may use
any court decision under this paragraph that is adverse to the owner  of
an  eligible  building  as  the  basis  for  further enforcement action.
Notwithstanding any other provision of law, an action by a tenant of  an
eligible  rental building under this paragraph shall be commenced within
six years from the date of the latest violation.
(p)  Appointment  of  receiver.  In  addition  to  the  remedies   for
non-compliance  provided  for  in  subparagraph five of paragraph (e) of
this subdivision, any such local law or ordinance may also provide  that
the  local  housing agency may make application for the appointment of a
receiver in accordance with the procedures contained in such  local  law
or ordinance. Any receiver appointed pursuant to this paragraph shall be
authorized,  in addition to any other powers conferred by law, to effect
compliance with the provisions of this subdivision, such  local  law  or
ordinance,  and  rules  and regulations of the local housing agency. Any
expenditures incurred by the receiver to effect  such  compliance  shall
constitute  a  debt  of the owner and a lien upon the property, and upon
the  rents  and  income  thereof,  in  accordance  with  the  procedures
contained  in  such  local law or ordinance. The local housing agency in
its discretion may provide funds to be expended  by  the  receiver,  and
such  funds  shall  constitute  a  debt  recoverable  from  the owner in
accordance with applicable local laws or ordinances.
(q) Authority of city to limit local  law.  Where  a  city  enacts  or
amends  a  local law or ordinance under this subdivision, such local law
or ordinance may restrict, limit or condition the eligibility, scope  or
amount  of  rehabilitation  program  benefits  under  the  local  law or
ordinance in any manner, provided that the local law  or  ordinance  may
not  grant rehabilitation program benefits beyond those provided in this
subdivision.