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

* § 421-p. Exemption of newly-constructed or converted 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) The term "rental multiple dwelling" means a structure, other  than
a  hotel,  consisting  of  ten  or more dwelling units, where all of the
units are rented for residential purposes, and  twenty-five  percent  of
such  units,  upon  initial  rental  and  upon  each  subsequent  rental
following a vacancy during the benefit period,  are  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.  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 twenty-five years,
provided, that the exemption percentage during such additional period of
twenty-five years shall begin at ninety-six percent and  shall  decrease
by four percent each year thereafter. Provided, however:
(a)  Taxes  shall  be paid during the exemption period in an amount at
least equal to the taxes paid on such land and any improvements  thereon
during the tax year preceding the commencement of such exemption.
(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 a newly constructed or converted property which is
used  partially  as  a  rental  multiple  dwelling  and  partially   for
commercial  or  other purposes, the portion of the 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. (a) For the purposes of this subdivision, the following terms shall
have the following meanings:
(i)  "Applicant"  shall mean an applicant for the exemption authorized
by this section and/or any successor to such applicant.
(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.
(iii)  "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  multiple  dwelling,  including,  but not
limited to,  a  watchman,  guard,  doorman,  building  cleaner,  porter,
handyman,   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 such eligible
multiple dwelling.
(iv) "Fiscal officer" shall mean the commissioner of labor.
(v) "Eligible multiple dwelling" shall mean any  newly-constructed  or
converted  rental  multiple  dwellings that receive benefits pursuant to
this section.
(b) All building service employees employed by  the  covered  building
service  employer  at  the  eligible multiple dwelling shall receive the
applicable prevailing wage in accordance with article nine of the  labor
law  for  the duration of the benefit period, regardless of whether such
benefits are revoked or  terminated.  Such  applicable  prevailing  wage
shall  in no case be lower than the prevailing wage provided to building
service employees for work performed within the respective county  under
the  collective  bargaining  agreement  covering  the  largest number of
hourly building service  employees  employed  at  residential  buildings
within  such  county  in  each  job  classification  established  by the
commissioner of labor. The commissioner of  labor  shall  determine  the
applicable  prevailing wage rates and prevailing rate of fringe benefits
for each  job  classification  consistent  with  the  corresponding  job
classifications  covered  by  such  collective bargaining agreements. To
determine the applicable supplement benefit rate,  the  commissioner  of
labor shall identify the applicable hourly, weekly or monthly cost to an
employer   as  specified  under  the  applicable  collective  bargaining
agreement of providing such supplements.
(c) (i) 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:  (A)  to  investigate  or  cause  an

investigation to be made to determine the prevailing wages for  building
service  employees, and 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; (B)
to institute and  conduct  inspections  at  the  site  of  the  work  or
elsewhere; (C) to examine the books, documents and records pertaining to
the  wages paid to, and the hours of work performed by, building service
employees; (D) to hold hearings and, in connection therewith,  to  issue
subpoenas,  the  enforcement  of  which  shall be regulated by the civil
practice law and rules, administer oaths and examine witnesses;  (E)  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;  (F) 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; (G) to delegate any of the
foregoing  powers  to  such  fiscal officer's deputy or other authorized
representative; (H) to promulgate rules as  such  fiscal  officer  shall
consider   necessary   for   the   proper   execution   of  the  duties,
responsibilities and powers conferred upon him or her by the  provisions
of  this  subdivision;  and  (I)  to prescribe appropriate sanctions for
failure to comply with the provisions of this subdivision.
(ii) 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 attorneys' fees. If the fiscal officer finds  that  the
applicant  has failed to comply with the provisions of this subdivision,
such fiscal officer shall present evidence of such non-compliance to the
village, town, or city  that  enacted  a  local  law  pursuant  to  this
section,  or  to any municipal agency or entity identified in such local
law.
(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 whose new  construction  or
conversion  is  carried  out  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.
(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 approval  of  the  village,  town,  or  city  that
enacted a local law pursuant to this section, or of any municipal agency
or  entity  identified  in  such  local  law,  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 village, town, or city that enacted a local  law  pursuant  to
this section, or any municipal agency or entity identified in such local
law  shall  annually publish a list of all eligible sites subject to the
requirements of this subdivision and the affadavits required pursuant to
paragraph (e) of this subdivision.
(g) If  a  covered  building  service  employer  has  committed  three
violations of the requirements of paragraph (b) of this subdivision with
respect  to  the  same  eligible  multiple  dwelling  within a five-year
period, the village, town, or city that enacted a local law pursuant  to
this section, or any municipal agency or entity identified in such local
law  may  revoke  any  benefits  associated  with such eligible multiple
dwelling  under  this  section.  For  purposes  of  this  paragraph,   a
"violation"  of  paragraph  (b)  of  this  subdivision  will be deemed a
finding by the fiscal officer that a covered building  service  employer
has  failed  to  comply  with  paragraph (b) of this subdivision 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 paragraph. If benefits are terminated or
revoked  for  failure  to  comply  with  this  subdivision  all  of  the
affordable  housing units shall remain subject to rent stabilization and
all  other  requirements  of  this  section  for  the  duration  of  the
restriction  period,  regardless  of  whether  such  benefits  have been
terminated or revoked.
7. The exemption authorized by this section shall not be available  in
a city with a population of one million or more.
8.  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.
* NB There are two § 421-p's