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

§  421-g. Exemption from local taxation of certain multiple dwellings.
1. When used in this section:
(a) "Aggregate floor area" shall mean the sum of the  gross  areas  of
the  several  floors  of a building, measured from the exterior faces of
exterior walls  or  from  the  center  lines  of  walls  separating  two
buildings.
(b)  "Applicant"  shall mean any person obligated to pay real property
taxes on the property for which an exemption from or abatement  of  real
property  taxes  under  this  section is sought or in the case of exempt
property, the record owner or lessee thereof.
(c) "Benefit period" shall mean the period of time when a recipient is
eligible to receive benefits pursuant to subdivisions two and  three  of
this section.
(d) "Certificate of eligibility" shall mean the document issued by the
department  of housing preservation and development certifying a tax lot
as eligible for benefits pursuant to this section.
(e) "Commencement of conversion" shall mean the date  of  issuance  by
the department of buildings of a building permit for the conversion of a
non-residential  building  to  an  eligible  multiple dwelling, provided
however that such permit is issued on  or  after  July  first,  nineteen
hundred ninety-five and no later than June thirtieth, two thousand six.
(f)  "Completion of conversion" shall mean the date of issuance by the
department of buildings of  a  temporary  or  permanent  certificate  of
occupancy for the portion of the building for which an application for a
certificate of eligibility is filed.
(g)  "Eligible area" shall mean any area of a city having a population
of one million or more persons in which, subject to the  applicable  law
governing zoning in such city, tax benefits pursuant to this section for
eligible  multiple  dwellings  are available, provided, however, that in
the city of New York, subject to the applicable law governing zoning  in
such  city,  the  eligible  area  in which tax benefits pursuant to this
section for eligible multiple dwellings are  available  shall  mean  the
area  in  the borough of Manhattan bounded by Murray Street on the north
starting at the intersection of West Street and Murray  Street;  running
easterly along the center line of Murray Street; connecting through City
Hall  Park with the center line of Frankfort Street and running easterly
along  the  center  lines  of  Frankfort  and  Dover  Streets   to   the
intersection  of  Dover Street and South Street; running southerly along
the center line of  South  Street  to  Peter  Minuit  Plaza;  connecting
through  Peter  Minuit  Plaza  to  the  center  line of State Street and
running northwesterly along the center  line  of  State  Street  to  the
intersection  of  State Street and Battery Place; running westerly along
the center line of Battery Place to the intersection  of  Battery  Place
and  West  Street;  and  running northerly along the center line of West
Street to the intersection of West Street and Murray Street.
(h) "Eligible  multiple  dwelling"  shall  mean  a  class  A  multiple
dwelling,  except  a hotel, created from conversion of a non-residential
building, provided, however, that  such  multiple  dwelling  is  located
within  an  eligible  area,  and  provided  further,  however,  that the
aggregate floor area of commercial, community facility and accessory use
space within such multiple dwelling  does  not  exceed  twenty-five  per
centum of the aggregate floor area of such multiple dwelling.
(i)  "Non-residential building" shall mean a structure or portion of a
structure having at least one floor, a roof and  at  least  three  walls
enclosing all or most of the space used in connection with the structure
or  portion  of  the structure, which has a certificate of occupancy for
commercial, manufacturing or other non-residential use for not less than
ninety per centum of the aggregate  floor  area  of  such  structure  or

portion of such structure, or other proof of such non-residential use as
is acceptable to the department of housing preservation and development.
(j)  "Person" shall mean an individual, corporation, limited liability
company, partnership, association, agency,  trust,  estate,  foreign  or
domestic government or subdivision thereof, or other entity.
(k)  "Recipient"  shall  mean  an  applicant  to whom a certificate of
eligibility has been issued pursuant to this section, or  the  successor
in  interest  of  such  applicant,  provided that where a person who has
entered into a lease or purchase agreement with the owner or  lessee  of
exempt property has been a co-applicant, such person or the successor in
interest of such person shall be the recipient.
2.  (a)  Within  a  city  having  a  population of one million or more
persons, a tax lot containing an eligible multiple dwelling that is  the
subject  of a certificate of eligibility issued pursuant to this section
shall be exempt from real property taxation for  local  purposes,  other
than  assessments  for local improvements, on the amount of the assessed
value attributable exclusively to the physical improvement, for a period
not to exceed  twelve  consecutive  years  beginning  in  the  tax  year
immediately  following  the issuance of a certificate of eligibility, so
long as such eligible multiple dwelling is used or held out for use  for
dwelling purposes, except as otherwise provided herein. During the first
eight  years, the exemption shall equal the amount of the assessed value
attributable exclusively to the physical improvement. During  the  ninth
year, the exemption shall equal eighty per centum of such amount; during
the  tenth  year,  the  exemption  shall  equal sixty per centum of such
amount; during the eleventh year, the exemption shall  equal  forty  per
centum  of such amount; and during the twelfth year, the exemption shall
equal twenty per centum of such amount.
The following table shall illustrate the computation of the  exemption
pursuant to this paragraph:
Tax Year Following                           Percentage of
Date of Issuance of                          Applicable
Certificate of Eligibility                   Exemption
1                                      100%
2                                      100%
3                                      100%
4                                      100%
5                                      100%
6                                      100%
7                                      100%
8                                      100%
9                                       80%
10                                       60%
11                                       40%
12                                       20%
(b)  Notwithstanding  paragraph (a) of this subdivision, within a city
having a population of one million or more persons, a tax lot containing
an eligible multiple dwelling that is the subject of  a  certificate  of
eligibility  issued  pursuant  to this section and that is in a building
that, in  accordance  with  procedures  set  forth  in  local  law,  was
designated as a landmark before completion of conversion shall be exempt
from  real  property taxation for local purposes, other than assessments
for local improvements, on the amount of the assessed value attributable
exclusively to the physical improvement, for  a  period  not  to  exceed
thirteen  consecutive  years  beginning  in  the  tax  year  immediately
following the issuance of a certificate of eligibility, so long as  such

eligible  multiple  dwelling  is  used  or held out for use for dwelling
purposes, except as otherwise provided herein.  During  the  first  nine
years,  the  exemption  shall  equal  the  amount  of the assessed value
attributable  exclusively  to the physical improvement. During the tenth
year, the exemption shall equal eighty per centum of such amount; during
the eleventh year, the exemption shall equal sixty per  centum  of  such
amount;  during  the  twelfth  year, the exemption shall equal forty per
centum of such amount; and during the  thirteenth  year,  the  exemption
shall equal twenty per centum of such amount.
The  following table shall illustrate the computation of the exemption
pursuant to this paragraph:
Tax Year Following                           Percentage of
Date of Issuance of                          Applicable
Certificate of Eligibility                   Exemption
1                                      100%
2                                      100%
3                                      100%
4                                      100%
5                                      100%
6                                      100%
7                                      100%
8                                      100%
9                                      100%
10                                       80%
11                                       60%
12                                       40%
13                                       20%
2-a. Within a city having a population of one million or more persons,
a tax lot containing a non-residential building  shall  be  exempt  from
real  property  taxation  for local purposes, other than assessments for
local improvements, on the amount of  the  assessed  value  attributable
exclusively  to  the  physical improvement, for the tax year immediately
following the first taxable status date that  meets  the  following  two
conditions:  (i)  such taxable status date occurs after the commencement
of conversion and (ii) such taxable status date  is  the  first  taxable
status  date on which an increase in assessed value attributable to such
physical improvement has been assessed.  Notwithstanding  the  foregoing
sentence, no such exemption shall be granted if completion of conversion
occurs  before  the fifteenth day of April following such taxable status
date.  In  the  event  that  an  exemption  granted  pursuant  to   this
subdivision  is  not  reflected on the final assessment roll prepared on
the basis of such taxable status date, the commissioner  of  finance  is
hereby  authorized  to  refund  or credit in the fiscal year relating to
such taxable status date or in the next following fiscal year an  amount
equivalent  to  the exempt amount multiplied by the applicable tax rate.
In addition to any other basis for revocation of  an  exemption  granted
pursuant  to  this  section,  the  exemption  granted  pursuant  to this
subdivision to a non-residential  building  shall  be  revoked  if  such
building is not converted into an eligible multiple dwelling that is the
subject of a certificate of eligibility issued pursuant to this section.
3.  (a)  Within  a  city  having  a  population of one million or more
persons, in addition to the benefits set forth  in  subdivision  two  of
this section, a tax lot containing an eligible multiple dwelling that is
the  subject  of  a  certificate  of eligibility issued pursuant to this
section shall receive an abatement of real property taxes for  a  period
not  to  exceed  fourteen  consecutive  years  beginning in the tax year

immediately following the issuance of a certificate of  eligibility,  so
long  as such eligible multiple dwelling is used or held out for use for
dwelling purposes, except as otherwise provided herein. During the first
year,  the  abatement  shall be equal to the amount of the real property
tax that would have been due but for such abatement, provided,  however,
that  if the tax lot, during the first year of such abatement, was fully
or partially exempt from real property taxes, other than pursuant to the
exemption authorized by this section, then the abatement shall equal the
amount of the real property tax that would have been due  but  for  such
full  or  partial  exemption. During the second through tenth years, the
abatement shall equal one hundred per centum of such amount; during  the
eleventh  year,  the  abatement  shall  equal  eighty per centum of such
amount; during the twelfth year, the abatement  shall  equal  sixty  per
centum  of  such amount; during the thirteenth year, the abatement shall
equal forty per centum of such amount; and during the  fourteenth  year,
the abatement shall equal twenty per centum of such amount.
The  following table shall illustrate the computation of the abatement
pursuant to this paragraph:
Tax Year Following                           Percentage of
Date of Issuance of                          Applicable
Certificate of Eligibility                   Abatement
1                                      100%
2                                      100%
3                                      100%
4                                      100%
5                                      100%
6                                      100%
7                                      100%
8                                      100%
9                                      100%
10                                      100%
11                                       80%
12                                       60%
13                                       40%
14                                       20%
(b) Notwithstanding paragraph (a) of this subdivision, within  a  city
having  a  population of one million or more persons, in addition to the
benefits set forth in  subdivision  two  of  this  section,  a  tax  lot
containing  an  eligible  multiple  dwelling  that  is  the subject of a
certificate of eligibility issued pursuant to this section and  that  is
in  a  building  that,  in accordance with procedures set forth in local
law, was designated as a landmark before completion of conversion  shall
receive  an  abatement of real property taxes for a period not to exceed
fifteen  consecutive  years  beginning  in  the  tax  year   immediately
following  the issuance of a certificate of eligibility, so long as such
eligible multiple dwelling is used or held  out  for  use  for  dwelling
purposes,  except  as  otherwise provided herein. During the first year,
the abatement shall be equal to the amount of the real property tax that
would have been due but for such abatement, provided, however,  that  if
the  tax  lot,  during  the  first  year of such abatement, was fully or
partially exempt from real property taxes, other than  pursuant  to  the
exemption authorized by this section, then the abatement shall equal the
amount  of  the  real property tax that would have been due but for such
full or partial exemption. During the second through eleventh years, the
abatement shall equal one hundred per centum of such amount; during  the
twelfth  year,  the  abatement  shall  equal  eighty  per centum of such

amount; during the thirteenth year, the abatement shall equal sixty  per
centum  of  such amount; during the fourteenth year, the abatement shall
equal forty per centum of such amount; and during  the  fifteenth  year,
the abatement shall equal twenty per centum of such amount.
The  following table shall illustrate the computation of the abatement
pursuant to this paragraph:
Tax Year Following                           Percentage of
Date of Issuance of                          Applicable
Certificate of Eligibility                   Abatement
1                                      100%
2                                      100%
3                                      100%
4                                      100%
5                                      100%
6                                      100%
7                                      100%
8                                      100%
9                                      100%
10                                      100%
11                                      100%
12                                       80%
13                                       60%
14                                       40%
15                                       20%
(c) If, as a result of application to the tax commission  or  a  court
order  or  action  by  the  department of finance, the billable assessed
value is reduced,  the  department  of  finance  shall  recalculate  the
abatement  utilizing  such  reduced  billable assessed value. The amount
equal to the difference between the abatement originally granted and the
abatement as so recalculated shall be deducted from any refund otherwise
payable or remission otherwise due as a  result  of  such  reduction  in
billable assessed value, and any balance of such amount remaining unpaid
after  making  any  such  deduction  shall  be paid to the department of
finance within thirty days from the date of mailing by the department of
finance of a notice of the amount payable.  Such  amount  payable  shall
constitute  a  tax lien on the eligible multiple dwelling as of the date
of such notice and, if not paid within such thirty-day  period,  penalty
and interest at the rate applicable to delinquent taxes on such eligible
multiple dwelling shall be charged and collected on such amount from the
date of such notice to the date of payment.
4.  If  the aggregate floor area of commercial, community facility and
accessory use space exceeds twelve per centum  of  the  aggregate  floor
area  of  any  building receiving benefits pursuant to this section, the
benefits provided pursuant to this section shall be equal to the  amount
provided  by  subdivisions two, two-a and three of this section, reduced
by a percentage equal to the difference between the per  centum  of  the
aggregate   floor  area  that  is  commercial,  community  facility  and
accessory use space and twelve per centum, provided,  however,  that  if
the aggregate floor area of such building contains more than twenty-five
per  centum of commercial, community facility and accessory use space no
benefits shall be available pursuant to  this  section.  In  calculating
aggregate  floor area for purposes of subdivision two-a of this section,
"aggregate floor area" shall mean  the  intended  aggregate  floor  area
after completion of conversion, as set forth in the building plans filed
with  the  department  of buildings. If, after completion of conversion,
the actual aggregate floor area of commercial,  community  facility  and

accessory use space is greater than the intended aggregate floor area of
such  space  and  the  actual aggregate floor area of such space exceeds
twelve per centum of the actual aggregate floor area, then the  benefits
granted  pursuant  to subdivision two-a of this section shall be revoked
or partially revoked, as required, to reflect the actual aggregate floor
area of such  space.  If  a  building  contains  a  separately  assessed
non-residential  parcel,  the  aggregate floor area of such parcel shall
not be considered in calculating the aggregate floor area of commercial,
community facility and  accessory  use  space  relevant  to  determining
eligibility  for,  and amount of, benefits pursuant to this section. For
the purposes of this section, accessory use space shall not include home
occupation space or  accessory  parking  space  located  not  more  than
twenty-three feet above the curb level.
5. Benefits under this section may not be combined with benefits under
any other section of this chapter for the same tax lot.
6.   Notwithstanding   the   provisions  of  any  local  law  for  the
stabilization of rents in multiple dwellings  or  the  emergency  tenant
protection act of nineteen seventy-four, the rents of each dwelling unit
in an eligible multiple dwelling shall be fully subject to control under
such  local  law,  unless  exempt  under  such local law from control by
reason of the cooperative or condominium status of  the  dwelling  unit,
for  the  entire  period  for  which  the  eligible multiple dwelling is
receiving benefits pursuant to this section, provided, however, that for
purposes of this subdivision, an eligible  multiple  dwelling  receiving
benefits   pursuant  to  this  section  whose  benefits  are  suspended,
terminated or revoked by the  department  of  housing  preservation  and
development  shall  be deemed to be receiving benefits for the length of
time such benefits would have been received if  such  benefits  had  not
been  suspended, terminated or revoked, or for the period such local law
is in  effect,  whichever  is  shorter.  Thereafter,  such  rents  shall
continue  to  be  subject  to  such control, except that such rents that
would not have been subject to such control but  for  this  subdivision,
shall  be  decontrolled  if  the landlord has included in each lease and
renewal thereof for such unit for the tenant in residence at the time of
such decontrol a notice in at least twelve  point  type  informing  such
tenant  that  the  unit  shall become subject to such decontrol upon the
expiration of benefits pursuant to this section.
7. (a) In a non-residential building of less than one hundred thousand
square feet of aggregate floor area,  completion  of  conversion  to  an
eligible  multiple  dwelling  of at least seventy-five per centum of the
aggregate floor area of such non-residential building  must  take  place
within three years of commencement of conversion.
(b)  Only  the  aggregate floor area for which conversion is completed
within such three-year period shall be  considered  in  calculating  the
exemption and abatement provided pursuant to this section.
(c)  In  a  non-residential building of less than one hundred thousand
square feet of aggregate floor area  containing  a  separately  assessed
non-residential  parcel,  the  aggregate  floor  area of such separately
assessed non-residential parcel shall not be considered  in  determining
whether  seventy-five  per  centum  of  the aggregate floor area of such
non-residential building has been  converted  to  an  eligible  multiple
dwelling.
8.  (a)  In  a non-residential building of one hundred thousand square
feet or more of aggregate floor area, completion  of  conversion  to  an
eligible  multiple  dwelling  of at least seventy-five per centum of the
aggregate floor area of such non-residential building  must  take  place
within five years of commencement of conversion, provided, however, that
completion  of  conversion  to an eligible multiple dwelling of at least

fifty per centum of the aggregate floor  area  of  such  non-residential
building   must  take  place  within  three  years  of  commencement  of
conversion, and provided further that proof  of  completion  of  partial
conversion within three years shall be submitted with an application for
a  certificate  of eligibility for full exemption and abatement benefits
pursuant to this section.
(b) In a non-residential building of one hundred thousand square  feet
or  more of aggregate floor area in which completion of conversion to an
eligible multiple dwelling of at least fifty per centum of the aggregate
floor area of such non-residential building has taken place within three
years of commencement of conversion, and  which  is  the  subject  of  a
certificate  of  eligibility for partial exemption and partial abatement
issued pursuant to this section, partial exemption and partial abatement
of real property taxes shall  be  available,  as  follows:  (i)  partial
exemption  benefits  shall  equal  the  amount  of  the  assessed  value
attributable exclusively to the physical improvement resulting from  the
conversion  of  at least fifty per centum of the aggregate floor area of
the non-residential building that has received a  temporary  certificate
of  occupancy  and (ii) partial abatement benefits shall be equal to the
amount of the real property tax that would  have  been  due  during  the
first year of such partial abatement but for such partial abatement upon
the amount of square feet of aggregate floor area of the non-residential
building  that  has  received  a  temporary certificate of occupancy for
conversion of at least fifty per centum of the aggregate floor  area  of
the  non-residential  building,  provided, however, that if the tax lot,
during the first year of such partial abatement was fully  or  partially
exempt  from  real  property taxes, other than pursuant to the exemption
authorized by this section, then the partial abatement shall be equal to
the amount of real property tax that  would  have  been  due  upon  such
amount  of  square  feet  of aggregate floor area of the non-residential
building but for  such  full  or  partial  exemption.  Nothing  in  this
paragraph  shall  be deemed to require an applicant to apply for partial
exemption or abatement benefits  pursuant  to  this  section,  provided,
however,  that  if an applicant applies for a certificate of eligibility
for such benefits, he or she shall submit proof of completion of partial
conversion with the application for such certificate.
(c) In a non-residential building of one hundred thousand square  feet
or  more of aggregate floor area only the aggregate floor area for which
conversion  is  completed  within  the  five-year  period  specified  in
paragraph  (a)  of this subdivision or, in the case of partial exemption
from or partial abatement of real property taxes, the three-year  period
specified  in  paragraph (b) of this subdivision, shall be considered in
calculating the  exemption  and  abatement  provided  pursuant  to  this
section,  provided,  however,  that  neither  partial exemption from nor
partial  abatement  of  real  property  taxes  shall  be  available  for
commercial, community facility or accessory use space.
(d)  In a non-residential building of one hundred thousand square feet
or more  of  aggregate  floor  area  containing  a  separately  assessed
non-residential  parcel,  the  aggregate  floor  area of such separately
assessed non-residential parcel shall not be considered  in  determining
whether  seventy-five  per  centum  or, in the case of partial exemption
from or partial abatement of real property taxes, fifty  per  centum  of
the  aggregate  floor  area  of  such  non-residential building has been
converted to an eligible multiple dwelling.
(e) Any partial exemption from or partial abatement of  real  property
taxes granted pursuant to this section for a non-residential building of
one  hundred  thousand square feet or more of aggregate floor area shall
be revoked if completion of conversion to an eligible multiple  dwelling

of  at least seventy-five per centum of the aggregate floor area of such
non-residential building has  not  taken  place  within  five  years  of
commencement of conversion.
(f)  The  time periods specified in subdivisions two and three of this
section shall begin upon  receipt  of  any  partial  exemption  from  or
partial  abatement of real property taxes for a non-residential building
of one hundred thousand square feet or more of aggregate floor area.
9. (a) An application  for  a  certificate  of  eligibility  for  full
exemption and abatement benefits pursuant to this section shall be filed
with  the  department  of  housing preservation and development no later
than close of business day on the thirty-first day of March  immediately
following   the  first  taxable  status  date  following  completion  of
conversion. If a certificate of eligibility for  partial  exemption  and
abatement  benefits  pursuant to this section is sought by an applicant,
an application for a certificate of eligibility for such benefits  shall
be  filed with the department of housing preservation and development no
later than close of business  day  on  the  thirty-first  day  of  March
immediately following the first taxable status date following completion
of  partial  conversion.  The  department  of  housing  preservation and
development shall issue a certificate of eligibility for  benefits  upon
determining  that  the  applicant  satisfies  the  requirements  of this
section.
(b) In addition to any other information required by the department of
housing preservation and development, an application for  a  certificate
of  eligibility  for  benefits  under  this section shall state that the
applicant agrees to comply with and be subject to rules  promulgated  by
the department of finance and the department of housing preservation and
development  to  secure  compliance with this section and all applicable
local, state and federal laws. Such application shall also certify  that
all  taxes, water charges and sewer rents currently due and owing on the
property which is the subject of the application have been paid  or  are
currently   being  paid  in  timely  installments  pursuant  to  written
agreement with the department of finance or other appropriate agency.
(c) The burden of proof shall be on the applicant to show by clear and
convincing evidence that the requirements for  granting  benefits  under
this section have been satisfied. The department of housing preservation
and  development  shall have the authority to require that statements in
connection with the application shall be made under oath.
(d)  The  department  of  finance  and  the  department   of   housing
preservation  and  development  may  promulgate  rules  to carry out the
purposes of this section, including, but not limited to, rules providing
for such administrative charges or  fees  as  are  necessary  to  defray
expenses  in administering the benefit program provided pursuant to this
section and rules defining, or expanding upon the definition  of,  terms
used in this section.
10. Any tax lot which is partly located inside the eligible area shall
be deemed to be entirely located inside such area.
11.  No  benefits  pursuant  to  this section shall be granted for any
conversion to an eligible multiple dwelling unless the  applicant  shall
file, together with the application for a certificate of eligibility, an
affidavit setting forth the following information:
(a)  a statement that within the seven years immediately preceding the
date of application  for  a  certificate  of  eligibility,  neither  the
applicant,  nor any person owning a substantial interest in the property
as defined in paragraph  (c)  of  this  subdivision,  nor  any  officer,
director  or general partner of the applicant or such person was finally
adjudicated by a  court  of  competent  jurisdiction  to  have  violated
section  two hundred thirty-five of the real property law or any section

of article one hundred fifty of the penal law or any similar  arson  law
of another jurisdiction with respect to any building, or was an officer,
director  or  general  partner  of  a person at the time such person was
finally adjudicated to have violated such law; and
(b)  a  statement setting forth any pending charges alleging violation
of section two hundred thirty-five of  the  real  property  law  or  any
section  of  article  one  hundred fifty of the penal law or any similar
arson law of another jurisdiction with respect to any  building  by  the
applicant or any person owning a substantial interest in the property as
defined  in  paragraph (c) of this subdivision, or any officer, director
or general partner of the applicant or such person, or  any  person  for
whom  the  applicant  or  person  owning  a  substantial interest in the
property is an officer, director or general partner.
(c) "Substantial interest" as used in this subdivision and subdivision
twelve of this section shall mean ownership and control of  an  interest
of ten per centum or more in property or any person owning a property.
12. (a) If any person described in the statement required by paragraph
(b)  of  subdivision  eleven  of  this  section or paragraph (b) of this
subdivision is finally adjudicated by a court of competent  jurisdiction
to be guilty of any charge listed in such statement, the recipient shall
cease  to  be  eligible  for benefits pursuant to this section and shall
pay, with interest, any taxes for which benefits were  claimed  pursuant
to this section.
(b)  The  recipient shall, on the certificate of continuing use, state
whether any charges alleging violation by the recipient  or  any  person
owning  a substantial interest in the property, or any officer, director
or general partner of the  recipient  or  person  owning  a  substantial
interest in the property, or any person for whom the recipient or person
owning a substantial interest in the property is an officer, director or
general partner, of section two hundred thirty-five of the real property
law  or any section of article one hundred fifty of the penal law or any
similar arson law of another jurisdiction, are pending. For purposes  of
this  paragraph,  "substantial  interest" shall have the same meaning as
set forth in paragraph (c) of subdivision eleven of this section.
13. In addition to any other qualifications for benefits  pursuant  to
this section, an applicant must be:
(a)  obligated  to  pay  real  property  tax on the property for which
benefits are sought, whether such obligation arises  because  of  record
ownership  of  such  property, or because the obligation to pay such tax
has been assumed by contract; or
(b) the record owner or lessee of property which is exempt  from  real
property  taxation  who  has  entered into an agreement to sell or lease
such property to another person. Such person  shall  be  a  co-applicant
with such owner or lessee.
14.  A  co-applicant with a public entity shall be eligible to receive
benefits pursuant to this section, provided that for such period as  the
property  which  is  the  subject  of  the certificate of eligibility is
exempt from real property taxation because it is owned or controlled  by
a  public  entity  no  benefits  shall  be  available  to such recipient
pursuant to this section. Such recipient shall receive benefits pursuant
to this section when such property ceases to be eligible  for  exemption
pursuant  to  other  provisions of law, as follows: the recipient shall,
commencing with the date such tax exemption ceases, and continuing until
the expiration of the benefit period pursuant to this  section,  receive
the  benefits  to  which such recipient is entitled in the corresponding
tax year pursuant to this section.
15. For the duration of the benefit period, the recipient  shall  file
annually with the department of housing preservation and development, on

or before the taxable status date, a certificate of continuing use. Such
certificate  shall  be on a form prescribed by the department of housing
preservation and development. The department of housing preservation and
development  shall  have the authority to require such information as it
deems necessary to  determine  whether  the  recipient  has  established
continuing   eligibility   for   benefits.  The  department  of  housing
preservation and development  shall  have  the  authority  to  terminate
benefits  pursuant to this section upon failure of the recipient to file
such certificate by the taxable status date. The burden of  proof  shall
be on the recipient to establish continuing eligibility for benefits and
the  department of housing preservation and development may require that
statements made in such certificate shall be made under oath.
16. Any recipient whose property is the subject of  a  certificate  of
eligibility for benefits pursuant to this section who converts aggregate
floor area within such property from the use authorized pursuant to this
section  where  such  conversion  results  in less that seventy-five per
centum of the aggregate floor area of such property being used  or  held
out  for  use for dwelling purposes, or where such conversion results in
more than twenty-five per centum of such aggregate floor area being used
or held out for use for commercial, community facility or accessory  use
space,  or  where  such conversion in a building of one hundred thousand
square feet or more of aggregate floor area that has  a  certificate  of
eligibility  for  a  partial  exemption or partial abatement pursuant to
subdivision eight of this section results in less than fifty per  centum
of such aggregate floor area being used or held out for use for dwelling
purposes,  shall  cease  to be eligible for benefits as of the last date
upon which the recipient met the requirements of this section and proves
by clear and convincing evidence that at least seventy-five  per  centum
of the aggregate floor area of the property was used or held out for use
for  dwelling  purposes,  or  twenty-five  per  centum  or  less  of the
aggregate floor area of such property was used or held out for  use  for
commercial, community facility or accessory use space, or at least fifty
per centum of the aggregate floor area of such property in a building of
one  hundred  thousand  square  feet  or more which is receiving partial
exemption or partial abatement benefits was used or held out for use for
dwelling  purposes,  respectively.  Such  recipient  shall   pay,   with
interest,  any  taxes  for  which benefits were claimed after such date,
including the pro-rata share of tax for which any benefits were  claimed
during  the  tax  year  in which the property was converted to a use not
eligible for benefits under this section.
17. All taxes plus interest required to be paid retroactively pursuant
to this section shall constitute a tax lien as of the date  that  it  is
determined  that such taxes and interest are owed. All interest shall be
calculated from the date the taxes would  have  been  due  but  for  the
benefits  claimed pursuant to this section at three per centum above the
applicable  rate  of  interest  imposed  by  such  city  generally   for
non-payment  of  real property tax with respect to such property for the
period in question.
18. (a) The department of housing  preservation  and  development  may
deny,  reduce,  suspend,  terminate  or  revoke  any  exemption  from or
abatement of tax payments pursuant  to  this  section  whenever:  (i)  a
recipient  fails  to comply with the requirements of this section or the
rules promulgated hereunder; or (ii) an application, certificate, report
or other document submitted by an applicant  or  recipient  pursuant  to
this  section  or  the  rules  promulgated hereunder contains a false or
misleading statement as to  a  material  fact  or  omits  to  state  any
material  fact  necessary  in  order  to make the statements therein not
false  or  misleading.  The  department  of  housing  preservation   and

development  may  declare  any  applicant  or  recipient  referred to in
subparagraph (i) or (ii) of this paragraph to be ineligible  for  future
benefits pursuant to this section for the same or other property.
(b)  Notwithstanding  any other law to the contrary, a recipient shall
be personally liable  for  any  taxes  owed  pursuant  to  this  section
whenever  such  recipient fails to comply with this section or the rules
promulgated hereunder, or makes such false or  misleading  statement  or
omission,  and  the  department  of housing preservation and development
determines that such act was due to the recipient's willful neglect,  or
that  under  the  circumstances  such  act  constituted  a  fraud on the
department of housing  preservation  and  development,  or  a  buyer  or
prospective  buyer  of  the  property. The remedy provided herein for an
action in personam shall be in addition to any other remedy or procedure
for the enforcement of collection of delinquent taxes  provided  by  any
general,  special  or  local  law. Any lease provision which obligates a
tenant to pay taxes which become due because of willful neglect or fraud
by the recipient, or otherwise relieves  or  indemnifies  the  recipient
from  any personal liability arising hereunder, shall be void as against
public policy except where the imposition of such taxes or liability  is
occasioned by actions of the tenant in violation of the lease.
(c)  In order to carry out the purposes of this section the department
of housing preservation and development may administer oaths to and take
the testimony of any person, including but not limited to the  owner  of
property  which  is  the  subject of an application for a certificate of
eligibility or a certificate of eligibility pursuant to this section and
issue subpoenas requiring the attendance of persons and  the  production
of  such  bills,  books,  papers  or  other  documents  as it shall deem
necessary.
(d) If, during the benefit period, any real property tax or  water  or
sewer  charge  due  and  payable  with  respect to property receiving an
exemption or abatement pursuant to this section shall remain unpaid  for
at  least  one  year  following  the  date upon which such tax or charge
became due and payable, all exemptions and abatements  granted  pursuant
to  this  section with respect to such property shall be revoked, unless
within thirty days from the mailing of a notice  of  revocation  by  the
department  of finance satisfactory proof is presented to the department
of finance that any and all delinquent  taxes  and  charges  owing  with
respect to such property as of the date of such notice have been paid in
full  or  are  currently being paid in timely installments pursuant to a
written agreement with the department of finance  or  other  appropriate
agency.  Any  revocation  pursuant  to this paragraph shall be effective
with respect to real property tax which became due and payable following
the date of such revocation.