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

§  421-c.    Exemption  of  certain  new multiple dwellings from local
  taxation.  1.  The provisions of this section shall apply to each  town,
  village  or  city  with  a population of less than one million which has
  declared an emergency in accordance with the provisions of the emergency
  tenant protection act  of  nineteen  seventy-four  and  which  adopts  a
  resolution  making  the  provisions  of  this section applicable to such
  town, village or city.  The owner of housing accommodations in  a  newly
  constructed  building,  which would be subject to the provisions of such
  act except for the fact that the building  was  completed  on  or  after
  January first, nineteen hundred seventy-four, may file a declaration, in
  a form suitable for recording, with the rent guidelines board subjecting
  such housing accommodations to the provisions of said act.
2.    Such  new  residential  buildings shall be exempt from all taxes
  imposed by a municipal corporation including those imposed by  a  school
  district,   other   than  assessments  for  local  improvements,  during
  construction and so long as used for residence purposes for a period not
  to exceed ten years in the  aggregate  after  the  taxable  status  date
  immediately following the completion thereof, consisting of two years of
  full exemption followed by two years of exemption from eighty percent of
  such  taxation, followed by two years of exemption from sixty percent of
  such taxation, followed by two years of exemption from forty percent  of
  such taxation, followed by two years of exemption from twenty percent of
  such  taxation; provided that taxes shall be paid during any such period
  at least in  the  amount  of  the  taxes  paid  on  such  land  and  any
  improvements  thereon  during the tax year preceding the commencement of
  such construction and that exemption from taxes shall not be availed  of
  concurrently  under  any other law.   To be eligible for exemption under
  this section such construction shall take place on vacant, predominantly
  vacant or under-utilized land, or on land improved with a non-conforming
  use.   The initial legal regulated rents  to  be  charged  upon  initial
  occupancy after construction aided by exemption under this section shall
  be  at  least  fifteen  percent  less  than  the  rents  prevailing  for
  comparable newly constructed residential units in the same area  or  any
  comparable  area;  and  notwithstanding  the provisions of the emergency
  tenant protection act of nineteen seventy-four, the rents shall be fully
  subject to regulation under such act for a period of ten  years  or  for
  the  period  such  act  is  in  effect  in the municipality in which the
  building is situate, whichever is shorter, at the  expiration  of  which
  such  rent  shall  be  deregulated,  unless  immediately  prior  to such
  expiration such rents would have been regulated by the provisions of any
  law other than pursuant to this section, in which event such rents shall
  continue subject to such regulation to the same extent and in  the  same
  manner  as  if  this  section had never applied thereto.  Any additional
  taxes levied against the building as a result of the  phase-out  of  the
  exemption  provided  by  this section may be charged by the owner to the
  tenants on an equitable basis without seeking the approval of the  local
  rent  guidelines board.   For the purposes of this section, construction
  shall be deemed commenced when excavation has begun in good faith on the
  basis of approved construction plans.
3.  Application forms for exemption under this section shall be  filed
  with the assessor between February first and March fifteenth, and, based
  on  the  certification of the local rent guidelines board, the assessors
  shall certify to the collecting  officer  the  amount  of  taxes  to  be
  abated.    No such application shall be accepted by the assessors unless
  accompanied  by  a  certificate  of  the  local  rent  guidelines  board
  certifying  the  applicant's  eligibility pursuant to subdivision one of
  this section.   Requests to  these  local  rent  guidelines  boards  for
  certification shall be accompanied by a ten-year projection of the rents

  based   on  current  levels  of  operating  costs  and  showing  to  the
  satisfaction of such board a  relative  stability  of  rents  over  such
  period  reflecting to the extent that this is practicable, and averaging
  of  the  tax  benefits  of this section in the interests of the tenants.
  The state division of housing and community renewal may promulgate rules
  and regulations to  carry  out  the  provisions  of  this  section,  not
  inconsistent with the provisions hereof.