2023 New York Laws › PVH - Private Housing Finance › Article 8 - Loans to Owners of Existing Multiple Dwellings › 405 - Rent Control; Tax Exemption.

§  405. Rent control; tax exemption. 1. Notwithstanding the provisions
  of, or any regulations promulgated pursuant to,  the  emergency  housing
  rent  control law, the local emergency housing rent control act or local
  law enacted pursuant thereto: (1) housing accommodations in any multiple
  dwelling aided by a loan pursuant to this  article  shall  have  maximum
  rents  prescribed  in  accordance with and shall be fully subject to the
  provisions of said laws and regulations during the life of the  loan  or
  during  any period in which any exemption and abatement from taxation on
  the  property  resulting  from   the   installations,   alterations   or
  improvements  made with such loan remain in effect or for a period of at
  least ten years from the occupancy date, whichever is  later;  (2)  upon
  payment  of the loan or the expiration of the said tax exemption and tax
  abatement or of the said ten year period, whichever  is  later,  housing
  accommodations in any such multiple dwelling shall, upon application, be
  decontrolled, unless immediately prior to such payment or expiration the
  rents  of  such housing accommodations would have been controlled by the
  provisions of said laws and regulations, other  than  pursuant  to  this
  article,  in  which  event  such  housing  accommodations shall continue
  subject to the provisions of said  laws  and  regulations  to  the  same
  extent  and  in  the same manner as if this article had never applied to
  such  accommodations;  (3)  should  the  provisions  of  said  laws  and
  regulations  expire while any loan made pursuant to this article remains
  unpaid or before the expiration  of  the  said  tax  exemption  and  tax
  abatement  or  of  the  said  ten  year period, whichever is later, then
  housing accommodations in multiple dwellings aided by such  loans  shall
  be  subject  to control by the agency to the same extent and in the same
  manner as they were subject to control by the  temporary  state  housing
  rent  commission  or by the city housing rent agency created pursuant to
  the local emergency housing rent control act. However, the maximum  rent
  for  any  such housing accommodations shall be the rent last established
  by the said rent commission or by the  said  city  housing  rent  agency
  subject  to  adjustment by the agency pursuant to the provisions of this
  article and regulations of the agency promulgated pursuant  thereto  and
  (4) should the provisions of said laws and regulations not be applicable
  in  a  municipality  prior  to  the  making  of  a loan pursuant to this
  article, then rents in  housing  accommodations  in  multiple  dwellings
  aided  by  such  loans shall be subject to regulation by the agency in a
  manner calculated to assure compliance with the policy and  purposes  of
  this article.
1-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this
  section, and subject to the provisions of subdivision twenty of  section
  six hundred fifty-four of this chapter, where the housing accommodations
  in  any  multiple  dwelling are aided pursuant to this article by a loan
  made by the New York city housing development corporation, maximum rents
  during the life of such loan shall be prescribed by the agency  and  the
  rental  rate  may  be  varied  by  the  agency  from  time  to time upon
  application by the owner or by the New  York  city  housing  development
  corporation  so  as  to secure, together with all other income from such
  property, sufficient  income  to  meet  within  reasonable  limits,  all
  necessary  payments  to  be  made by the owner of all expenses including
  fixed charges, sinking funds, reserves and dividends.
* 1-b. Notwithstanding the  provisions  of  subdivision  one  of  this
  section,  where  the housing accommodations in any multiple dwelling are
  aided by a loan pursuant to this article made by the municipality on  or
  after  September  first, nineteen hundred eighty-four, and provided that
  such housing accommodations were vacant at the time of the making of the
  loan, maximum rents during the life of such loan shall be prescribed  by
  the  agency and the rental rate may be varied by the agency from time to

  time upon application by the owner or by the agency  so  as  to  secure,
  together  with all other income from such property, sufficient income to
  meet within reasonable limits, all necessary payments to be made by  the
  owner  of all expenses, including fixed charges, sinking funds, reserves
  and dividends.
* NB Effective until July 1, 2024
* 1-b. Notwithstanding the  provisions  of  subdivision  one  of  this
  section,  where  the housing accommodations in any multiple dwelling are
  aided by a loan pursuant to this article made by the municipality on  or
  after  September  first, nineteen hundred eighty-four, and provided that
  such housing accommodations were vacant at the time of the making of the
  loan, maximum rents during the life of such loan shall be prescribed  by
  the  agency and the rental rate may be varied by the agency from time to
  time upon application by the owner or by the agency  so  as  to  secure,
  together  with all other income from such property, sufficient income to
  meet within reasonable limits, all necessary payments to be made by  the
  owner  of all expenses, including fixed charges, sinking funds, reserves
  and dividends.
* NB Effective July 1, 2024
* 1-c. Except with  respect  to  dwelling  accommodations  subject  to
  subdivision   one-a  or  one-b  of  this  section,  notwithstanding  the
  provisions  of  subdivision  one  of  this  section  or  any  regulation
  promulgated  pursuant  to  the  emergency  housing rent control law, the
  local  emergency  housing  rent  control  act,  the   emergency   tenant
  protection  act  of  nineteen  seventy-four,  or  any  local law enacted
  pursuant thereto, upon completion of the rehabilitation  of  a  multiple
  dwelling  which  is aided by a loan pursuant to this article made by the
  municipality on or after September first, nineteen  hundred  eighty-six,
  the  agency  shall  establish  the initial rent for each rental dwelling
  unit within  the  multiple  dwelling.  All  dwelling  units  within  the
  multiple  dwelling  subsequent  to establishment of initial rents by the
  agency shall be subject  to  the  rent  stabilization  law  of  nineteen
  hundred  sixty-nine.  The occupant in possession of such a dwelling unit
  when it is made subject  to  the  rent  stabilization  law  of  nineteen
  hundred  sixty-nine shall be offered a choice of a one or two year lease
  at the initial rents  established  by  the  agency  notwithstanding  any
  contrary  provisions  of,  or  regulations adopted pursuant to, the rent
  stabilization law of  nineteen  hundred  sixty-nine  and  the  emergency
  tenant  protection  act of nineteen seventy-four. The agency shall cause
  all  tenants  in  occupancy  of  each  dwelling  unit  affected  by  the
  provisions  of this section to be notified of and have an opportunity to
  comment on the  contemplated  rehabilitation.  Such  notification  shall
  advise  such  tenants  of the approximate expected rent increase and the
  subsequent availability of a one or two year  lease.  Such  notification
  and  opportunity  to comment shall be provided before the rehabilitation
  and  again  after  the  construction  is  completed   and   before   the
  establishment of the initial rents.
* NB Expires July 1, 2024
2.  The  municipality  may,  by  local law, provide for exemption from
  taxation of any increase in valuation resulting from  the  installation,
  alterations  or improvements performed with the aid of such loans or for
  abatement of taxation on such property, including the land, or for  both
  such  exemption  and abatement, to the same extent, for the same period,
  and under the same terms and conditions as such exemption or  abatement,
  or  both,  may  be  provided by local law enacted under the terms of any
  currently effective statute authorizing the granting of tax exemption or
  tax abatement, or both, in aid  of  the  rehabilitation,  alteration  or
  improvement  of  multiple dwellings or the elimination of unhealthful or

  dangerous conditions therein. Notwithstanding any contrary provisions of
  any general, special or local law, a property aided by a  loan  pursuant
  to  this  article  shall  not  be  ineligible  for  tax exemption or tax
  abatement or both, as provided by local law enacted pursuant to statute,
  solely  because  such  property is not subject to control of rents under
  the emergency housing rent control law or local law enacted pursuant  to
  the local emergency housing rent control act, but such tax exemption and
  tax  abatement  shall  terminate if and when such property is subject to
  control of rents neither under the emergency housing rent  control  law,
  local  law  enacted pursuant to the local emergency housing rent control
  act or this article.