2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 421-PP - Exemption of Newly Converted or Constructed Fully Income Restricted Rental Multiple Dwellings.

§  421-pp.  Exemption  of  newly converted or constructed fully income
restricted rental multiple dwellings. 1. (a) A  city,  town  or  village
may,  by  local  law,  provide  for  the  exemption  of  rental multiple
dwellings constructed or converted in a benefit area designated in  such
local  law  from  taxation and special ad valorem levies, as provided in
this section. Subsequent to the adoption of such a local law, any  other
municipal  corporation  in  which the designated benefit area is located
may likewise exempt such property  from  its  taxation  and  special  ad
valorem  levies  by  local  law, or in the case of a school district, by
resolution.
(b) As used in this section, the term "benefit area"  means  the  area
within  a  city,  town  or village, designated by local law, to which an
exemption, established pursuant to this section, applies.
(c) As used in this section, the term "rental multiple dwelling" means
a structure, other than a hotel, consisting  of  ten  or  more  dwelling
units,  where  all  but  a  maximum  of  two of the units are rented for
residential purposes, and all of such units,  upon  initial  rental  and
upon  each  subsequent rental following a vacancy during the restriction
period or extended restriction period, as applicable, is  affordable  to
and  restricted  to occupancy by individuals or families whose household
income does not exceed a weighted average of no less than sixty  percent
of  the  area  median income and no more than eighty percent of the area
median  income,  adjusted  for  family  size,  at  the  time  that  such
households  initially  occupy such dwelling units, provided further that
all of the income restricted units upon initial  rental  and  upon  each
subsequent  rental  following a vacancy during the restriction period or
extended restriction period, as applicable, shall be affordable  to  and
restricted  to  occupancy  by  individuals  or  families whose household
income does not exceed one hundred percent of the  area  median  income,
adjusted  for  family  size,  at the time that such households initially
occupy such dwelling units. The  two  residential  units  that  are  not
income  restricted  must  be  occupied  by  superintendents, caretakers,
managers or other employees to whom the space is provided as part or all
of their compensation without payment of rent and who are  employed  for
the  purpose  of  rendering  services in connection with the premises of
which the housing accommodation is a part.  In  the  event  no  unit  is
provided  or  rented to such an employee, all units in the building must
be income restricted pursuant to this paragraph. Provided  further  that
any  local  law  authorizing  an  exemption pursuant to this section may
provide for the area median income weighted average within  the  amounts
set  forth in this paragraph. Such restriction period shall be in effect
coterminous with the benefit period, provided, however, that the  tenant
or  tenants  in  an  income  restricted  dwelling  unit at the time such
restriction period ends shall have the right to lease  renewals  at  the
income  restricted  level  until  such  time  as  such tenant or tenants
permanently vacate the dwelling unit.
2. Eligible newly-constructed or converted rental  multiple  dwellings
in  a designated benefit area shall be wholly exempt from taxation while
under construction, subject to a maximum of three years.  Such  property
shall then be exempt for an additional period of thirty years. Provided,
however:
(a) Taxes shall be paid during the exemption period in an amount to be
determined  by  the  local  law providing the exception pursuant to this
section, provided, however, that amount shall be no greater than ten per
centum of the shelter rent of  the  eligible  rental  multiple  dwelling
exempted pursuant to this section.
(b)  No  other  exemption  may  be  granted  concurrently  to the same
improvements under any other section of law.
3.  To  be  eligible  for  exemption  under  this  section,  any   new
construction  shall  take  place  on  vacant,  predominantly  vacant  or
underutilized land, or on land improved with a non-conforming use or  on
land   containing  one  or  more  substandard  or  structurally  unsound
dwellings,  or  a  dwelling that has been certified as unsanitary by the
local health agency. The provisions of this subdivision shall not  apply
to any new conversions undertaken pursuant to this section.
4.  Application  for  exemption  under this section shall be made on a
form prescribed by the commissioner and filed with the  assessor  on  or
before the applicable taxable status date.
5.  In  the case of newly constructed property which is used partially
as a rental multiple dwelling and  partially  for  commercial  or  other
purposes,  the portion of the newly constructed property that is used as
a  rental  multiple  dwelling  shall  be  eligible  for  the   exemption
authorized by this section if:
(a)  the  square  footage  of  the  portion  used as a rental multiple
dwelling represents at least fifty percent of the square footage of  the
entire property;
(b)  the  rental  units  are  affordable to individuals or families as
determined according to the criteria  set  forth  in  paragraph  (c)  of
subdivision one of this section; and
(c)  the  requirements  of  this  section are otherwise satisfied with
respect to the portion  of  the  property  used  as  a  rental  multiple
dwelling.
6.  The exemption authorized by this section shall not be available in
a city with a population of one million or more.
7. Any recipient of the exemption authorized by this section or  their
designee  shall  certify  compliance with the provisions of this section
under penalty of perjury, at such time or times and in  such  manner  as
may  be prescribed in the local law adopted by the city, town or village
pursuant to paragraph (a) of subdivision one of this section,  or  by  a
subsequent  local  law.  Such  city,  town or village may establish such
procedures as it deems necessary for monitoring and enforcing compliance
of an eligible building with the provisions of this section.