2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-X - Affordable Neighborhoods for New Yorkers Tax Incentive.

§  485-x.  Affordable  neighborhoods for New Yorkers tax incentive. 1.
Definitions. For purposes of this section:
(a) "Affordability option A" shall mean:
(i) for a large rental project, that, within any  eligible  site:  (A)
not  less  than twenty-five percent of the dwelling units are affordable
housing units; (B) the weighted average of all income bands for  all  of
the  affordable housing units does not exceed eighty percent of the area
median income, adjusted for family size; (C)  there  are  no  more  than
three  income  bands for all of the affordable housing units; and (D) no
income band for affordable housing units exceeds one hundred percent  of
the area median income, adjusted for family size;
(ii)  for a very large rental project, that, within any eligible site:
(A) not  less  than  twenty-five  percent  of  the  dwelling  units  are
affordable  housing  units; (B) the weighted average of all income bands
for all of the affordable housing units does not exceed sixty percent of
the area median income, adjusted for family size; (C) there are no  more
than three income bands for all of the affordable housing units; and (D)
no  income band for affordable housing units exceeds one hundred percent
of the area median income, adjusted for family size.
(b) "Affordability option B" shall  mean  that,  within  any  eligible
site:
(i)  not  less  than  twenty  percent of the dwelling units are
affordable housing units; (ii) the weighted average of all income  bands
for  all  of the affordable housing units does not exceed eighty percent
of the area median income, adjusted for family size; (iii) there are  no
more  than  three  income bands for all of the affordable housing units;
and (iv) no income band for affordable housing units exceeds one hundred
percent of the area median income, adjusted for family size.
(c) "Affordability option C" shall  mean  that,  within  any  eligible
site,  not  less than fifty percent of the dwelling units are subject to
rent stabilization for the restriction period.
(d) "Affordability option D" shall mean  a  homeownership  project  in
which  one  hundred  percent of the units shall have an average assessed
value per square foot that does not exceed eighty-nine dollars upon  the
first  assessment  following the completion date and where each owner of
any such unit shall agree, in writing, to maintain such  unit  as  their
primary  residence  for  no less than five years from the acquisition of
such unit.
(e) "Affordability percentage" shall mean a fraction, the numerator of
which is the number of affordable housing units in an eligible site  and
the  denominator  of which is the total number of dwelling units in such
eligible site.
(f) "Affordable neighborhoods for New Yorkers tax  incentive  benefits
(hereinafter  referred  to  as  "ANNY Program benefits")" shall mean the
exemption from real property taxation pursuant to this section.
(g) "Affordable housing unit" shall mean a dwelling unit that: (i)  is
situated  within  the  eligible site for which ANNY Program benefits are
granted; and (ii) upon initial rental and upon  each  subsequent  rental
following  a  vacancy  during  the  applicable  restriction  period,  is
affordable to and restricted to occupancy by a  household  whose  income
does  not  exceed  a  prescribed  percentage  of the area median income,
adjusted for family size, at the  time  that  such  household  initially
occupies such dwelling unit.
(h)  "Agency"  shall  mean  the department of housing preservation and
development.
(i) "Application" shall mean an application for ANNY Program benefits.
(j) "Building service employee" shall mean any person who is regularly
employed  at,  and  performs  work  in  connection  with  the  care   or
maintenance  of,  an  eligible  site,  including,  but not limited to, a

watchperson, guard, doorperson, building cleaner,  porter,  handyperson,
janitor,  gardener,  groundskeeper,  elevator  operator and starter, and
window cleaner, but not including persons regularly  scheduled  to  work
fewer than eight hours per week at the eligible site.
(k)  "Collective bargaining agreement" shall mean an agreement entered
into pursuant to section eight-f or section nine-a of the National Labor
Relations  Act  (29  U.S.C.  Sections  159(a)  and  158(f))  between   a
contractor or subcontractor and a labor organization setting forth terms
and   conditions   of   employment   for  those  construction  employees
represented by the labor organization and employed by the contractor  or
subcontractor to perform construction work on an eligible site.
(l)  "Commencement  date"  shall  mean,  with  respect to any eligible
multiple dwelling, the date upon which excavation  and  construction  of
initial  footings  and foundations lawfully begins in good faith or, for
an eligible conversion, the date upon which the actual  construction  of
the  conversion,  alteration or improvement of the pre-existing building
or structure lawfully begins in good faith.
(m) "Completion  date"  shall  mean,  with  respect  to  any  eligible
multiple dwelling, the date upon which the local department of buildings
issues  the  first  temporary  or  permanent  certificate  of  occupancy
covering all residential areas of an eligible multiple dwelling.
(n)  "Construction  employee"  shall  mean   any   person   performing
construction work who is a laborer, worker, or mechanic.
(o)  "Construction  period"  shall  mean, with respect to any eligible
multiple  dwelling,  a  period:  (i)  beginning  on  the  later  of  the
commencement  date  of  such  eligible  multiple dwelling or three years
before the completion date of such eligible multiple dwelling; and  (ii)
ending  on  the  day  preceding  the  completion  date  of such eligible
multiple dwelling.
(p) "Construction work" shall mean the provision of labor performed on
an eligible site between the commencement date and the completion  date,
whereby  materials and constituent parts are combined to initially form,
make  or  build  an  eligible  multiple  dwelling,   including   without
limitation,  painting,  or  providing of material, articles, supplies or
equipment in the eligible  multiple  dwelling,  but  excluding  security
personnel and work related to the fit-out of commercial spaces.
(q)  "Eligible  conversion"  shall  mean the conversion, alteration or
improvement of a pre-existing  building  or  structure  resulting  in  a
multiple  dwelling in which no more than forty-nine percent of the floor
area consists of such pre-existing building or structure.
(r) "Eligible multiple dwelling" shall mean  a  multiple  dwelling  or
homeownership  project  containing  six  or  more dwelling units created
through  new  construction  or  eligible  conversion   for   which   the
commencement  date  is after June fifteenth, two thousand twenty-two and
on or before June fifteenth, two thousand thirty-four and the completion
date is on or before June fifteenth, two thousand thirty-eight.
(s) "Eligible site" shall mean either: (i) a  tax  lot  containing  an
eligible  multiple dwelling; or (ii) a zoning lot containing two or more
eligible multiple dwellings that are part of a single application.
(t) "Employee benefits" shall mean all supplemental compensation  paid
by  the employer, on behalf of construction employees, other than wages,
including, without limitation, any premiums or contributions  made  into
plans or funds that provide health, welfare, non-occupational disability
coverage, retirement, vacation benefits, holiday pay, life insurance and
apprenticeship  training.  The  value  of any employee benefits received
shall be determined based on the prorated hourly cost to the employer of
the employee benefits received by construction employees.
(u) "Extended construction period" shall mean,  with  respect  to  any
very  large rental project located in Zone A, a period: (i) beginning on
the later of the commencement date of such eligible multiple dwelling or
five  years  before  the  completion  date  of  such  eligible  multiple
dwelling;  and  (ii)  ending on the day preceding the completion date of
such eligible multiple dwelling.
(v) "Fiscal officer" shall mean the  comptroller  or  other  analogous
officer in a city having a population of one million or more.
(w)  "Floor  area"  shall  mean  the  horizontal  areas of the several
floors, or  any  portion  thereof,  of  a  dwelling  or  dwellings,  and
accessory  structures  on  a  lot  measured  from  the exterior faces of
exterior walls, or from the center line of party walls.
(x) "Forty year benefit" shall mean: (i) for the  construction  period
or  extended  construction  period, as applicable, a one hundred percent
exemption from real property taxation, other than assessments for  local
improvements;  and  (ii)  for  the  first forty years of the restriction
period, a one hundred percent exemption  from  real  property  taxation,
other than assessments for local improvements.
(y) "Homeownership project" shall mean a multiple dwelling operated as
condominium  or  cooperative  housing;  however,  it shall not include a
multiple  dwelling  or  portion  thereof  operated  as  condominium   or
cooperative housing located within the borough of Manhattan.
(z)  "Hourly wage" shall mean the amount equal to the aggregate amount
of wages and employee benefits paid to, or on behalf of, a  construction
employee for each hour of construction work.
(aa)  "Jobsite agreement" shall mean a collective bargaining agreement
that only sets forth terms and conditions of employment for construction
employees performing  construction  work  under  the  agreement  at  one
specific eligible site.
(bb)  "Large rental project" shall mean an eligible site consisting of
one hundred or more residential dwelling units  in  which  all  dwelling
units included in any application are operated as rental housing.
(cc)  "Market unit" shall mean a dwelling unit in an eligible multiple
dwelling other than a restricted unit.
(dd) "Marketing band" shall mean  maximum  rent  ranging  from  twenty
percent  to  thirty  percent  of  the area median income applicable to a
specific affordable housing unit.
(ee) "Modest rental project" shall mean an eligible site consisting of
more than five and less than one hundred residential dwelling  units  in
which  all  dwelling  units  included in any application are operated as
rental housing, other than a small rental project.
(ff) "Multiple dwelling" shall have the  same  meaning  set  forth  in
subdivision seven of section four of the multiple dwelling law.
(gg)  "Neighborhood  tabulation  area"  shall mean a geographical area
defined by the department of city planning for the purposes of providing
neighborhood-level data.
(hh) "Non-residential tax lot" shall mean a  tax  lot  that  does  not
contain any dwelling units.
(ii)  "Project  labor  agreement"  shall  mean  a  pre-hire collective
bargaining agreement between a contractor and a bona fide  building  and
construction   trade   labor   organization   establishing   the   labor
organization as the collective bargaining representative for all persons
who will perform construction  work  on  an  eligible  site,  and  which
provides   that   only   contractors   and  subcontractors  who  sign  a
pre-negotiated  agreement  with  the  labor  organization  can   perform
construction work on an eligible site.
(jj)   "Rent   stabilization"   shall  mean,  collectively,  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 the chapter of the laws of
two  thousand  twenty-four  that  added  this  section  or  as   amended
thereafter,   together   with  any  successor  statutes  or  regulations
addressing substantially the same subject matter.
(kk) "Rental project" shall mean, collectively, a  very  large  rental
project,  large  rental project, modest rental project, and small rental
project.
(ll) "Residential tax lot" shall mean a tax lot that contains dwelling
units.
(mm) "Restricted unit" shall mean, individually and collectively:  (i)
affordable  housing  units;  and (ii) dwelling units that are subject to
rent stabilization in accordance with affordability option C.
(nn) "Restriction period"  shall  mean,  notwithstanding  any  earlier
termination  or  revocation  of affordable citywide construction program
benefits: (i) with respect to a rental project, a period  commencing  on
the  completion  date and extending in perpetuity; and (ii) with respect
to a homeownership project, a period commencing on the  completion  date
and expiring on the twentieth anniversary of the completion date.
(oo)  "Small rental project" shall mean an eligible site consisting of
more than five and less than eleven residential dwelling units,  located
outside  the  borough  of  Manhattan  on  a  zoning  lot  that permits a
residential floor area not exceeding twelve-thousand five hundred square
feet, in which all  dwelling  units  included  in  any  application  are
operated  as rental housing and that elects to comply with affordability
option C.
(pp) "Ten year benefit" shall mean: (i) for the construction period, a
one hundred percent exemption from real property  taxation,  other  than
assessments  for local improvements; (ii) for the first ten years of the
restriction period, a one hundred percent exemption from  real  property
taxation, other than assessments for local improvements.
(qq)  "Thirty-five  year benefit" shall mean: (i) for the construction
period, a one hundred percent exemption  from  real  property  taxation,
other  than  assessments  for  local  improvements;  (ii)  for the first
twenty-five years of the  restriction  period,  a  one  hundred  percent
exemption  from real property taxation, other than assessments for local
improvements; and (iii) for the ten  years  of  the  restriction  period
subsequent  to such twenty-five years, (A) with respect to modest rental
projects,  an  exemption  from  real  property  taxation,   other   than
assessments   for   local   improvements,  equal  to  the  affordability
percentage, and (B) with respect to large rental projects, a one hundred
percent exemption from real property taxation,  other  than  assessments
for local improvements.
(rr)  "Twenty  year  benefit"  shall  mean:  (i)  for the construction
period, a one hundred percent exemption  from  real  property  taxation,
other  than  assessments  for  local  improvements;  (ii)  for the first
fourteen  years  of  the  restriction  period,  a  one  hundred  percent
exemption  from real property taxation, other than assessments for local
improvements, provided, however, that no exemption shall  be  given  for
any  portion of the square footage of a unit with an assessed value that
exceeds eighty-nine dollars per square foot; and (iii) for the final six
years of the restriction period, a twenty-five  percent  exemption  from
real  property  taxation, other than assessments for local improvements,
provided, however, that no exemption shall be given for any  portion  of
the  square  footage  of  a  unit  with  an  assessed value that exceeds
eighty-nine dollars per square foot.
(ss) "Very large rental project" shall mean an eligible  site  located
in  Zone A or Zone B consisting of one hundred fifty or more residential

dwelling units in which all dwelling units included in  any  application
are operated as rental housing.
(tt)  "Wages" shall mean all compensation, remuneration or payments of
any kind paid to, or on behalf of,  construction  employees,  including,
without  limitation,  any  hourly  compensation  paid  directly  to  the
construction employee, together with employee benefits, such as  health,
welfare,  non-occupational  disability  coverage,  retirement,  vacation
benefits, holiday pay, life insurance and apprenticeship  training,  and
payroll  taxes, including, to the extent permissible by law, all amounts
paid  for  New  York  state  unemployment  insurance,  New  York   state
disability insurance, metropolitan commuter transportation mobility tax,
federal  unemployment  insurance  and  pursuant to the federal insurance
contributions act or any other payroll tax that is paid by the employer.
(uu) "Zone A" shall mean any tax lot now existing or hereafter created
which is located entirely  south  of  96th  street  in  the  borough  of
Manhattan  or  in  any of the following neighborhood tabulation areas as
most recently defined by the  department  of  New  York  City  planning:
Brooklyn  0101,  Brooklyn 0102, Brooklyn 0103, Brooklyn 0104, and Queens
0201.
(vv) "Zone B" shall mean any tax lot now existing or hereafter created
which  is  located  entirely  in  any  of  the  following   neighborhood
tabulation  areas as most recently defined by the department of New York
City planning: Brooklyn 0201, Brooklyn  0202,  Brooklyn  0203,  Brooklyn
0204,  Brooklyn  0601,  Brooklyn  0602,  Brooklyn 0801, Queens 0105, and
Queens 0102.
2. Benefit. In cities having a population  of  one  million  or  more,
notwithstanding  the  provisions of any general, special or local law to
the contrary, new  eligible  multiple  dwellings,  except  hotels,  that
comply  with  the  provisions  of this section shall be exempt from real
property taxation, other than assessments for local improvements, in the
amounts and for the periods specified as follows:
(a) a small rental project that complies with all of the  requirements
of this subdivision shall receive a ten year benefit;
(b) a modest rental project that complies with all of the requirements
of this subdivision shall receive a thirty-five year benefit;
(c)  a large rental project that complies with all of the requirements
of this subdivision shall receive a thirty-five year benefit;
(d) a very  large  rental  project  that  complies  with  all  of  the
requirements of this subdivision shall receive a forty year benefit; and
(e) a homeownership project that complies with all of the requirements
of this subdivision shall receive a twenty year benefit.
3.   Construction   work   requirements.  In  addition  to  all  other
requirements set forth in this section, any eligible site containing one
hundred or more dwelling units within the city of New York shall  comply
with  the requirements set forth in this subdivision except as otherwise
provided in any paragraph of this subdivision.
(a) Construction work on any  eligible  site  containing  one  hundred
units  or  more  shall  be  subject  to  requirements in accordance with
sections two hundred twenty and two hundred twenty-b of the  labor  law;
provided, however, that the minimum hourly rate of wages and supplements
required  to  be  paid to construction employees shall be forty dollars,
which shall increase by two and one-half percent on  the  first  day  of
July  in  the  year  two  thousand  twenty-five  and by two and one-half
percent on the first day of July in each year thereafter.
(b) Construction work on any  eligible  site  containing  one  hundred
fifty  units or more, within Zone A, shall be subject to requirements in
accordance with sections two hundred twenty and two hundred twenty-b  of
the  labor law; provided, however, that the minimum hourly rate of wages

and supplements required to be paid to construction employees  shall  be
the  lesser  of  seventy-two  dollars  and forty-five cents, which shall
increase by two and one-half percent on the first day  of  July  in  the
year  two  thousand  twenty-five  and by two and one-half percent on the
first day of July in each year thereafter, or sixty-five percent of  the
greatest   prevailing   rate   of   wages   and   supplements  within  a
classification.
(c) Construction work on any  eligible  site  containing  one  hundred
fifty  units or more, within Zone B, shall be subject to requirements in
accordance with sections two hundred twenty and two hundred twenty-b  of
the  labor law; provided, however, that the minimum hourly rate of wages
and supplements required to be paid to construction employees  shall  be
the  lesser  of  sixty-three  dollars,  which  shall increase by two and
one-half percent on the first day of  July  in  the  year  two  thousand
twenty-five  and by two and one-half percent on the first day of July in
each year thereafter, or sixty percent of the greatest  prevailing  rate
of wages and supplements within a classification.
(d)  The  owner of an eligible site shall be responsible for notifying
the fiscal officer and the agency at least three  months  prior  to  the
commencement  of  construction  work of the location of the project, the
anticipated construction start date, the  anticipated  construction  end
date,  and  the existence of any project labor agreement on the eligible
site. Failure to provide such notice in the  time  and  manner  required
shall   subject   the  owner  to  fines  and  penalties  not  to  exceed
five-thousand dollars per day. In addition to the  fines  and  penalties
set  forth  herein,  an  owner  shall  forfeit  the  tax  abatements and
exemptions provided under this section if construction  commences  prior
to providing the notice required under this section.
(e)  The  owner of an eligible site shall be responsible for retaining
original payroll records in accordance with section two  hundred  twenty
of  the labor law, as modified by paragraph (a) of this subdivision, for
a period of six years from the  completion  date.  All  payroll  records
maintained  by an owner pursuant to this subdivision shall be subject to
inspection on request of the fiscal officer. Such  owner  may  authorize
the  prime  contractor  on  the eligible site to take responsibility for
retaining and maintaining payroll records, but will be held jointly  and
severally  liable  for  any  violations  of such contractor. All records
obtained by the fiscal officer  shall  be  subject  to  the  freedom  of
information law.
(f)  The  fiscal officer may issue rules and regulations governing the
provisions of this subdivision. Violations of this subdivision shall  be
grounds  for  determinations  and orders pursuant to section two hundred
twenty-b of the labor law.
(g) Where a complaint is received pursuant to this subdivision, if the
fiscal officer finds cause to believe that an applicant  or  any  person
acting  on  behalf of or as an agent of an applicant, in connection with
the performance of any contract for construction work pursuant  to  this
subdivision,  has  committed  a  violation  of  the  provisions  of this
subdivision,  the  fiscal  officer  may  recapture  tax  abatements   or
exemptions provided pursuant to this section and/or terminate future tax
abatements  or  exemptions  made  available  pursuant  to  this  section
pursuant to the following:
(i) If an applicant or any person acting on behalf of or as  an  agent
of  an applicant, in connection with the performance of any contract for
construction work pursuant to  this  subdivision,  has  committed  three
violations  of  the  requirements  of paragraph (a), (b), or (c) of this
subdivision within a five-year period, the fiscal officer may  recapture
tax  abatements  or  exemptions provided pursuant to this section and/or

terminate future tax abatements or exemptions made available pursuant to
this section, provided, however, that after a second such violation, the
applicant shall be notified that any further violation may result in the
recapture  of  tax  abatements  or  exemptions provided pursuant to this
section and/or termination of future tax abatements or  exemptions  made
available  pursuant  to  this  section and that the fiscal officer shall
publish on its website a list of all applicants with two  violations  as
defined in this paragraph.
(ii) For purposes of this subdivision, a "violation" of paragraph (a),
(b),  or (c) of this subdivision shall be deemed a finding by the fiscal
officer that the applicant or any person acting on behalf of  or  as  an
agent  of  an applicant has failed to comply with paragraph (a), (b), or
(c) of this subdivision and has failed to  cure  the  deficiency  within
three months of such finding.
(iii)  If  the  fiscal officer recaptures tax abatements or exemptions
provided  pursuant  to  this  section  and/or  terminates   future   tax
abatements  or  exemptions  made  available pursuant to this section for
noncompliance with paragraph  (a),  (b),  or  (c)  of  this  subdivision
pursuant to this paragraph: (a) all of the restricted units shall remain
subject to rent stabilization and all other requirements of this section
for the restriction period, and any additional period expressly provided
in this section, as if the ANNY Program benefits had not been recaptured
or  terminated;  or  (b) for a homeownership project, such project shall
continue to comply with affordability requirements  set  forth  in  this
section  and  all other requirements of this section for the restriction
period and any additional period expressly provided in this section,  as
if the ANNY Program benefits had not been recaptured or terminated.
(h)  An  eligible  site  shall  be  excluded  from the requirements of
paragraphs  (a),  (b),  (c)  and  (d)  of  this  subdivision  where  the
performance  of all construction work on the eligible site is covered by
a project labor agreement.
(i) A contractor and owner may be excluded from  the  requirements  of
paragraphs  (a),  (b),  (c)  and (d) of this subdivision with respect to
only those construction employees of the contractor that are  performing
construction  work  on  the  eligible site under a collective bargaining
agreement  or  a  jobsite  agreement  that  has  expressly  waived   the
provisions of paragraphs (a), (b), (c) and (d) of this subdivision.
4. In addition to all other requirements set forth in this section, an
eligible  site  must,  over the course of the design and construction of
such eligible site, make all reasonable efforts to  spend  on  contracts
with  minority and women owned business enterprises at least twenty-five
percent of the total applicable costs, as such enterprises and costs are
defined in rules of the agency. Such  rules  shall  set  forth  required
measures  with respect to contracts for design and construction that are
comparable, to the extent practicable, to the measures used by  agencies
of  the  city  of  New York to enhance minority and women owned business
enterprise participation in agency contracts pursuant to applicable law,
including section 6-129 of the administrative code of the  city  of  New
York.
5.  Tax payments. In addition to any other amounts payable pursuant to
this section, the owner of any  eligible  site  receiving  ANNY  Program
benefits shall pay, in each tax year in which such ANNY Program benefits
are in effect, real property taxes and assessments as follows:
(a)  with  respect  to  each eligible multiple dwelling constructed on
such eligible site, real property taxes on  the  assessed  valuation  of
such  land  and  any  improvements thereon in effect during the tax year
prior to the commencement  date  of  such  eligible  multiple  dwelling,
without  regard  to  any  exemption  from  or abatement of real property

taxation in effect during such tax year, which real property taxes shall
be calculated using the tax rate in effect at the time  such  taxes  are
due,  provided, however, that this paragraph shall not apply to any very
large   rental  project  during  the  construction  period  or  extended
construction period, as applicable; and
(b) all assessments for local improvements.
6. Limitation on benefits for non-residential space. If the  aggregate
floor  area of commercial, community facility and accessory use space in
an eligible site, other than parking which  is  located  not  more  than
twenty-three  feet  above  the curb level, exceeds twelve percent of the
aggregate floor area in such eligible site, any  ANNY  Program  benefits
shall  be  reduced  by a percentage equal to such excess. If an eligible
site contains multiple tax lots, the tax arising out of  such  reduction
in  ANNY  Program benefits shall first be apportioned pro rata among any
non-residential tax lots. After any such non-residential  tax  lots  are
fully taxable, the remainder of the tax arising out of such reduction in
ANNY  Program  benefits, if any, shall be apportioned pro rata among the
remaining residential tax lots.
7. Calculation of benefit. Based on the certification  of  the  agency
certifying  the  applicant's  eligibility for ANNY Program benefits, the
assessors shall certify to the collecting officer the amount of taxes to
be exempted.
8. Affordability  and  rent  stabilization  requirements.  During  the
restriction  period,  a  large  rental  project  and a very large rental
project shall comply  with  affordability  option  A,  a  modest  rental
project shall comply with affordability option B, a small rental project
shall  comply  with  the  requirements  of affordability option C, and a
homeownership project shall comply with  affordability  option  D.  Such
election  shall  be  made in the application and shall not thereafter be
changed.
(a) All rental dwelling units in an eligible multiple  dwelling  shall
share the same common entrances and common areas as market rate units in
such  eligible multiple dwelling and shall not be isolated to a specific
floor or area of an eligible multiple dwelling. Common  entrances  shall
mean  any  area regularly used by any resident of a rental dwelling unit
in the eligible multiple dwelling  for  ingress  and  egress  from  such
eligible multiple dwelling.
(b)  Unless preempted by the requirements of a federal, state or local
housing program, either (i) the affordable housing units in an  eligible
multiple  dwelling  shall  have  a  unit  mix proportional to the market
units, or (ii) at least fifty percent of the affordable housing units in
an eligible multiple dwelling shall have two or  more  bedrooms  and  no
more than twenty-five percent of the affordable housing units shall have
less than one bedroom.
(c)  Notwithstanding  any  provision  of  rent  stabilization  to  the
contrary, (i) all restricted units shall remain fully  subject  to  rent
stabilization  both during and subsequent to the restriction period, and
(ii) any restricted unit occupied by a tenant whose eligibility has been
approved by the agency shall remain subject to rent stabilization  until
such  tenant  vacates  such  affordable  housing  unit  where,  (A) such
approval occurred prior to the agency's denial  of  an  application  for
ANNY   program  benefits  for  the  multiple  dwelling  containing  such
restricted unit, or (B) such restricted unit is in a  multiple  dwelling
for which an application for ANNY program benefits has not been filed or
has been withdrawn after filing.
(d)  All  rent stabilization registrations required to be filed shall:
(i)  contain  a  designation  that  specifically  identifies  affordable
housing  units  created  pursuant  to  this  section  as  "ANNY  Program

affordable housing units"; (ii) contain a designation that  specifically
identifies  dwelling  units  that  are  subject to rent stabilization in
accordance with affordability option C; and (iii) contain an explanation
of the requirements that apply to all such restricted units.
(e)  Failure  to  comply  with the provisions of this subdivision that
require the creation, maintenance,  rent  stabilization  compliance  and
occupancy of restricted units or for purposes of a homeownership project
the   failure  to  comply  with  the  affordable  homeownership  project
requirements shall result in the exercise of  the  agency's  enforcement
powers  in  accordance  with  this  section,  which include, but are not
limited to, revocation of any ANNY Program benefits.
(f) Nothing in this section shall (i) prohibit  the  occupancy  of  an
affordable  housing  unit by individuals or families whose income at any
time is less than the maximum percentage  of  the  area  median  income,
adjusted  for  family  size,  specified for such affordable housing unit
pursuant to this section, or (ii) prohibit the owner of an eligible site
from requiring, upon initial rental  or  upon  any  rental  following  a
vacancy,  the  occupancy  of  any  affordable housing unit by such lower
income individuals or families.
(g) Following issuance of a temporary  certificate  of  occupancy  and
upon  each vacancy thereafter, an affordable housing unit shall promptly
be offered for rental by individuals or families whose income  does  not
exceed  the  maximum  percentage of the area median income, adjusted for
family size, specified for such affordable housing unit pursuant to this
section and who intend to occupy such affordable housing unit  as  their
primary  residence.  A  restricted  unit  shall  not  be (i) rented to a
corporation, partnership or other entity, or (ii) held  off  the  market
for  a  period  longer  than  is reasonably necessary to perform repairs
needed to make such restricted unit available for occupancy.
(h) A restricted unit shall not be rented on a temporary, transient or
short-term basis. Every lease and renewal thereof for a restricted  unit
shall be for a term of one or two years, at the option of the tenant.
(i)  A  restricted  unit  shall  not  be  converted  to cooperative or
condominium ownership.
(j) The agency may establish by rule such requirements as  the  agency
deems  necessary  or  appropriate  for  (i)  the marketing of restricted
units, both upon initial occupancy and upon any vacancy, (ii) monitoring
compliance with the  provisions  of  this  subdivision,  and  (iii)  the
establishment  of marketing bands for affordable housing units, and (iv)
the marketing and  monitoring  of  any  homeownership  project  that  is
granted an exemption pursuant to this subdivision. Such requirements may
include, but need not be limited to, retaining a monitor approved by the
agency and paid for by the owner.
(k)  Notwithstanding  any provision of this section to the contrary, a
market unit shall not be subject to rent stabilization  unless,  in  the
absence  of  ANNY  Program  benefits,  the unit would be subject to rent
stabilization.
9.  Building  service  employees.  (a)  For  the  purposes   of   this
subdivision,  (i)  "applicant"  shall mean an applicant for ANNY Program
benefits and/or any successor  to  such  applicant;  and  (ii)  "covered
building  service employer" shall mean any applicant and/or any employer
of building service employees for such  applicant,  including,  but  not
limited to, a property management company or contractor.
(b)  All  building  service employees employed by the covered building
service employer at the  eligible  site  shall  receive  the  applicable
prevailing  wage  for  the  duration  of  the applicable benefit period,
regardless of whether such benefits are revoked or terminated.
(c) The fiscal officer shall have the power to enforce the  provisions
of  this  subdivision.  In enforcing such provisions, the fiscal officer
shall have the power:
(i)  to  investigate or cause an investigation to be made to determine
the prevailing wages for building  service  employees;  in  making  such
investigation,  the  fiscal  officer may utilize wage and fringe benefit
data from various sources, including,  but  not  limited  to,  data  and
determinations   of  federal,  state  or  other  governmental  agencies,
provided, however, that the provision of a dwelling unit  shall  not  be
considered wages or a fringe benefit;
(ii)  to  institute and conduct inspections at the site of the work or
elsewhere;
(iii) to examine the books, documents and records  pertaining  to  the
wages  paid  to,  and  the  hours of work performed by, building service
employees;
(iv)  to  hold  hearings  and,  in  connection  therewith,  to   issue
subpoenas,  administer oaths and examine witnesses; the enforcement of a
subpoena issued under this subdivision shall be regulated by  the  civil
practice law and rules;
(v)  to  make  a  classification  by  craft,  trade or other generally
recognized occupational category of the building service  employees  and
to  determine  whether  such  work  has  been  performed by the building
service employees in such classification;
(vi) to require the applicant to file with the fiscal officer a record
of the wages actually paid to the  building  service  employees  and  of
their hours of work;
(vii) to delegate any of the foregoing powers to such fiscal officer's
deputy or other authorized representative;
(viii)  to  promulgate  rules  as  such  fiscal officer shall consider
necessary for the proper execution of the duties,  responsibilities  and
powers  conferred  upon  such  fiscal  officer by the provisions of this
paragraph; and
(ix) to prescribe appropriate sanctions for failure to comply with the
provisions of this subdivision. For each violation of paragraph  (b)  of
this  subdivision,  the  fiscal  officer may require the payment of: (A)
back wages and fringe benefits; (B) liquidated damages up to three times
the amount of the back wages and fringe benefits for willful violations;
and/or (C) reasonable attorney's fees. If the fiscal officer finds  that
the  applicant  has  failed  to  comply  with  the  provisions  of  this
subparagraph, he or she shall present evidence of such non-compliance to
the agency.
(d) Paragraph (b) of this subdivision shall not be applicable to:
(i) an eligible multiple dwelling containing less than thirty dwelling
units; or
(ii) an eligible multiple dwelling in which all of the dwelling  units
are  affordable  housing  units  and not less than fifty percent of such
affordable housing units, upon initial rental and upon  each  subsequent
rental following a vacancy are affordable to and restricted to occupancy
by individuals or families whose household income does not exceed ninety
percent of the area median income, adjusted for family size, at the time
that such household initially occupies such dwelling unit.
(e)  The applicant shall submit a sworn affidavit with its application
certifying that it shall ensure compliance with the requirements of this
subdivision or is exempt  in  accordance  with  paragraph  (d)  of  this
subdivision.  Upon  the  agency's  approval  of  such  application,  the
applicant who is not exempt in accordance with  paragraph  (d)  of  this
subdivision  shall  submit  annually  a  sworn  affidavit  to the fiscal

officer certifying that it shall ensure compliance with the requirements
of this subdivision.
(f)  The  agency  shall  annually publish a list of all eligible sites
subject to  the  requirements  of  this  paragraph  and  the  affidavits
required pursuant to paragraph (e) of this subdivision.
10.  Replacement  ratio.  If  the  land  on  which an eligible site is
located  contained  any  dwelling  units  three  years  prior   to   the
commencement  date of the first eligible multiple dwelling thereon, then
such eligible multiple dwelling or dwellings built thereon shall contain
at least one affordable housing unit for each dwelling unit that existed
on such date and was thereafter  demolished,  removed  or  reconfigured,
provided  that  if  such  eligible  multiple dwelling or dwellings built
thereon is a small rental project, then such eligible multiple  dwelling
or  dwellings  built  thereon shall contain at least one restricted unit
for each dwelling unit that existed on  such  date  and  was  thereafter
demolished, removed or reconfigured.
11. Concurrent exemptions or abatements. An eligible multiple dwelling
receiving  ANNY Program benefits shall not receive any exemption from or
abatement of real property taxation under any other law.
12.  Voluntary  renunciation  or  termination.   Notwithstanding   the
provisions  of  any  general,  special  or local law to the contrary, an
owner shall not be entitled to voluntarily renounce  or  terminate  ANNY
Program  benefits  unless  the  agency  authorizes  such renunciation or
termination in connection with the commencement of a new  tax  exemption
pursuant  to  either  the  private  housing  finance law or section four
hundred twenty-c of this title.
13. Termination or revocation. The agency may terminate or revoke ANNY
Program benefits for failure to  comply  with  this  section;  provided,
however,  that  the  agency  shall  not terminate or revoke ANNY Program
benefits for a failure to comply with subdivision three of this section.
If a covered building service employer has committed three violations of
the requirements of paragraph (b) of subdivision nine  of  this  section
within a five-year period, the agency may revoke any benefits associated
with such eligible multiple dwelling under this section. For purposes of
this  subdivision, a "violation" of paragraph (b) of subdivision nine of
this section shall be deemed a finding by the fiscal  officer  that  the
covered  building  service  employer has failed to comply with paragraph
(b) of subdivision nine of this section  and  has  failed  to  cure  the
deficiency  within three months of such finding. Provided, however, that
after a second such violation, the applicant shall be notified that  any
further  violation  may  result in the revocation of benefits under this
section and that the fiscal officer shall publish on its website a  list
of all applicants with two violations as defined in this subdivision. If
ANNY  Program  benefits are terminated or revoked for noncompliance with
this section: (a) all of the restricted units shall  remain  subject  to
rent  stabilization  and  all other requirements of this section for the
applicable restriction  period,  and  any  additional  period  expressly
provided  in  this section, as if the ANNY Program benefits had not been
terminated or revoked; or (b) for a homeownership project, such  project
shall  continue  to  comply with affordability requirements set forth in
this section  and  all  other  requirements  of  this  section  for  the
restriction  period and any additional period expressly provided in this
section, as if the ANNY Program benefits  had  not  been  terminated  or
revoked.
14.  Powers  cumulative.  The  enforcement  provisions of this section
shall not be exclusive,  and  are  in  addition  to  any  other  rights,
remedies,  or enforcement powers set forth in any other law or available
at law or in equity.
15. Multiple tax lots. If an eligible site contains multiple tax lots,
an application may be submitted with respect to one or more of such  tax
lots.  The  agency shall determine eligibility for ANNY Program benefits
based upon the tax lots included in such application  and  benefits  for
each  multiple  dwelling shall be based upon the completion date of such
multiple dwelling.
16.  Applicant  registration.  (a)  Prospective  applicants  for  ANNY
Program  benefits  pursuant to this section shall file with the agency a
form supplied by the agency which: (i) states an intention to  file  for
such  benefits  under  the provisions of this subdivision; (ii) includes
the commencement date; and (iii)  establishes  the  intended  number  of
total  dwelling  units  and, if applicable, restricted units. The agency
shall promulgate such form no later than ninety days after the effective
date of this section.
(b) The form described in paragraph (a) of this subdivision  shall  be
filed:  (i)  for  projects with a commencement date before the effective
date of this section, no later than six months after such effective date
or six months  after  the  agency  promulgates  the  form  described  in
paragraph  (a)  of  this  subdivision,  whichever  is later; or (ii) for
projects with a commencement date on or after the effective date of this
section, no later than six months after such commencement  date  or  six
months  after the agency promulgates the form described in paragraph (a)
of this subdivision, whichever is later.
(c) Applicants who fail  to  comply  with  the  requirements  of  this
subdivision  shall  be  subject  to  a penalty not to exceed one hundred
percent of the application filing  fee  otherwise  payable  pursuant  to
subdivision eighteen of this section.
17.  Applications.  (a)  The  application with respect to any eligible
multiple dwelling shall be filed with the agency not later than one year
after the completion date of such eligible multiple dwelling.
(b) Notwithstanding the provisions of any general,  special  or  local
law to the contrary, the agency may require by rule that applications be
filed electronically.
(c)  The  agency may rely on certification by an architect or engineer
submitted  by  an  applicant  in  connection  with  the  filing  of   an
application.  A  false certification by such architect or engineer shall
be deemed to be professional misconduct pursuant to  section  sixty-five
hundred  nine  of  the  education law. Any licensee found guilty of such
misconduct under the procedures prescribed in section sixty-five hundred
ten of the education law shall be subject to the penalties prescribed in
section sixty-five  hundred  eleven  of  the  education  law  and  shall
thereafter  be  ineligible  to  submit  a certification pursuant to this
section.
(d) The agency  shall  not  require  that  the  applicant  demonstrate
compliance with the requirements of subdivision three of this section as
a condition to approval of the application.
18.  Filing fee. (a) The agency may require a filing fee of: (i) three
thousand dollars per dwelling unit in connection  with  any  application
for  an  eligible site consisting of more than five and less than eleven
residential rental  dwelling  units;  (ii)  four  thousand  dollars  per
dwelling  unit  in  connection with any application for an eligible site
consisting  of  more  than  eleven  units  and  less  than  one  hundred
residential  dwelling  units;  (iii)  four thousand dollars per dwelling
unit in connection with any application for a homeownership project; and
(iv) five thousand dollars per dwelling  unit  in  connection  with  any
application  for  an  eligible  site  consisting  of one hundred or more
residential dwelling units.
(b) Notwithstanding the provisions contained in paragraph (a) of  this
subdivision,  the agency may promulgate rules: (i) imposing a lesser fee
for eligible sites containing eligible  multiple  dwellings  constructed
with  the  substantial assistance of grants, loans or subsidies provided
by  a  federal,  state  or  local governmental agency or instrumentality
pursuant to a program for the development  of  affordable  housing;  and
(ii)  requiring  a  portion  of  the  filing  fee  to  be  paid upon the
submission  of  the  information  the  agency  requires  in  advance  of
approving  the commencement of the marketing process for a modest rental
project, a large rental project, or a very large rental project.
19. Rules. Except as provided in subdivisions three and nine  of  this
section,  the  agency  shall  have  the  sole  authority  to enforce the
provisions of this section and may promulgate rules  to  carry  out  the
provisions of this section.
20.  Reporting.  On  or  before  June  thirtieth  of  each  year,  the
commissioner of the agency shall issue a report  to  the  governor,  the
temporary  president  of  the  senate  and  the  speaker of the assembly
setting forth the number of total projects and  units  created  by  this
section  by  year, level of affordability, and community board, the cost
of the ANNY Program, and other such factors as the commissioner  of  the
New  York  city department of housing preservation and development deems
appropriate. The New York city department of  housing  preservation  and
development  may  request  and  shall receive cooperation and assistance
from all departments, divisions, boards,  bureaus,  commissions,  public
benefit  corporations  or agencies of the state of New York, the city of
New York or any other political  subdivisions  thereof,  or  any  entity
receiving benefits pursuant to this section.
21.  Penalties  for violations of affordability and rent stabilization
requirements. (a) On and after the  expiration  date  of  the  ten  year
benefit,  twenty  year  benefit, thirty-five year benefit, or forty year
benefit, as applicable, the agency  may  impose,  after  notice  and  an
opportunity  to  be heard, a fine for any violation of the affordability
and rent stablization requirements established pursuant  to  subdivision
eight  of  this  section  by  such  small  rental project, modest rental
project,  large  rental  project,  very   large   rental   project,   or
homeownership  project. The agency shall establish a schedule and method
of calculation of such fines pursuant to subdivision  nineteen  of  this
section.
(b)  A fine under this subdivision may be imposed against the owner of
the eligible site containing such small rental  project,  modest  rental
project,   large   rental   project,   very  large  rental  project,  or
homeownership project at the time the violation occurred, even  if  such
owner  no longer owns such eligible site. A failure to pay such fine may
result in a lien and such other remedies as may be available pursuant to
applicable law and regulation.