New York Reextension Of Exemption And Tax Abatement In Regard To Improvements Of Substandard Dwellings.
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§ 11-243 Reextension of exemption and tax abatement in regard to
improvements of substandard dwellings. a. As used in this section, the
following terms shall have the following meanings:
1. "Alteration" and "improvement": a physical change in an existing
dwelling other than painting, ordinary repairs, normal replacement of
maintenance items, provided, however, that ordinary repairs and normal
replacement of maintenance items, as defined by rules adopted by the
department of housing preservation and development pursuant to
subdivision m of this section, shall be eligible for tax exemption and
tax abatement under this section provided that repairs and maintenance
items:
(1) were started and completed within a twelve-month period,
(2) were made to any common area of the dwelling premises concurrently
with a major capital improvement thereto, as defined by rules adopted by
the department of housing preservation and development pursuant to
subdivision m of this section, and
(3) require the issuance of a permit for at least one item thereof by
any city agency, and
(4) the amount of money expended thereon shall not exceed two times
the amount expended on the major capital improvement performed
concurrently therewith.
"Alteration" and "improvement" shall also mean "an abatement" of
lead-based paint hazards, as defined in part 745 of title forty of the
code of federal regulations or any successor regulations in any existing
dwelling including any common areas, and shall include an "inspection"
and "risk assessment" for lead-based paint hazards, as defined in such
part, in a dwelling unit whether such unit is vacant or occupied but
shall not include any work performed to comply with a notice of
violation issued for a violation of article fourteen of subchapter two
of chapter two of title 27 of the administrative code. For purposes of
this paragraph, the term, "targeted area" shall mean the geographical
area of New York city that is determined by the department of health and
mental hygiene to have high rates of children with environmental
intervention blood lead levels. The department of housing preservation
and development shall establish two schedules of certified reasonable
costs for items that are included in an abatement of lead-based paint
hazards, one covering such abatement that is performed in an eligible
dwelling unit or common area located in the targeted area, and one
covering such abatement that is performed in an eligible dwelling unit
or common area that is not located in the targeted area. The first such
schedules shall be promulgated by the department of housing preservation
and development within 180 days of the effective date of this local law
and shall be used for any such abatements that are commenced on or after
August 2, 2004. Such schedules shall be reviewed by such department
biennially following their effective dates and amended as necessary.
Notwithstanding any other provision of law or rule, an owner who
performs an abatement of lead-based paint hazards pursuant to this
paragraph shall not be required to comply with subdivision (y) of this
section which provides for filing of a notice of intent form prior to
the commencement of work, and no additional fee or penalty shall be due
and owing the department at the time of issuance of a certificate of
eligibility and reasonable cost for failure to file such notice of
intent.
2. "Existing dwelling": except as hereinafter provided in subdivision
d of this section, a class A multiple dwelling or a building consisting
of one or two dwelling units over space used for commercial occupancy in
existence prior to the commencement of alterations for which tax
exemption and abatement is claimed under the terms of this section and
for which a valuation appears on the annual record of assessed valuation
of the city for the fiscal year immediately preceding the commencement
of such alterations and improvements.
3. "Start" an alteration or improvement: begin any physical operation
undertaken for the purpose of making alterations or improvements to an
existing dwelling.
4. "Complete" an alteration or improvement: conclude or terminate any
physical operation such as is referred to in the preceding paragraph, to
an extent or degree which renders such building capable of use for the
purpose for which the improvements or alterations were intended.
5. "Multiple dwelling": multiple dwellings as that term is defined in
section four of the multiple dwelling law.
6. "Moderate rehabilitation": shall mean a scope of work which
(a) includes a building-wide replacement of a major component of one
of the following systems:
(1) Elevator
(2) Heating
(3) Plumbing
(4) Wiring
(5) Window; and
(b) has a certified reasonable cost of not less than twenty-five
hundred dollars, exclusive of any certified reasonable cost for ordinary
repairs, for each dwelling unit in existence at the commencement of the
rehabilitation; except that the department of housing preservation and
development may establish a minimum certified reasonable cost to be
greater than twenty-five hundred dollars per dwelling unit pursuant to
subdivision m of this section.
7. "Substantially occupied": shall mean an occupancy of not less than
sixty percent of all dwelling units immediately prior and during
rehabilitation, except that the department of housing preservation and
development may establish higher percentages of occupancy pursuant to
subdivision m of this section.
8. "Private dwelling" shall mean any building or structure designed
and occupied for residential purposes by not more than two families.
Private dwellings shall also be deemed to include a series of one-family
or two-family dwelling units each of which faces or is accessible to a
legal street or public thoroughfare, if each such dwelling unit is
equipped as a separate dwelling unit with all essential services, and if
each such unit is arranged so that it may be approved as a legal
one-family or two-family dwelling.
b. Subject to the limitations provided in subdivision d of this
section and the restrictions in this section on conversion of buildings
used in whole or in part for single room occupancy, any increase in the
assessed valuation of real property shall be exempt from taxation for
local purposes to the extent such increase results from the reasonable
cost of: (1) the conversion of a class B multiple dwelling to a class A
multiple dwelling except insofar as the gross cubic content of such
building is increased thereby; or (2) the conversion of any
nonresidential building or structure situated in the county of New York
to a class A multiple dwelling except insofar as the gross cubic content
of such building is increased; or (3) the conversion of any
nonresidential building or structure situated in the counties of Bronx,
Kings, Queens or Richmond to a class A multiple dwelling except insofar
as the gross cubic content of such building or structure is increased
thereby; or (4) alterations or improvements to the exterior of an
otherwise eligible building or structure visible from a public street
pursuant to a permit issued by the landmarks commission with respect to
a designated historic or landmark site or structure; or (5) alterations
or improvements constituting a moderate rehabilitation of a
substantially occupied class A multiple dwelling except insofar as the
gross cubic content of such building or structure is increased thereby;
or (6) alterations or improvements to an otherwise eligible building or
structure commenced after January first, nineteen hundred eighty
designed to conserve the use of fuel, electricity or other energy
sources or to reduce demand for electricity, including the installation
of meters for purposes of measuring the amount of electricity consumed
for each dwelling unit, and conversions of direct metering to a system
that includes a master meter and submeters in any cooperative,
condominium, or housing development fund company organized under article
eleven of the private housing finance law; or (7) alterations or
improvements to existing dwellings to eliminate existing unhealthy or
dangerous conditions in any such existing dwelling or replace inadequate
and obsolete sanitary facilities in any such existing dwelling, any of
which represents fire or health hazards, including as improvements
asbestos abatement to the extent such asbestos abatement is required by
federal, state or local law, except insofar as the gross cubic content
of such existing dwelling is increased thereby; or (8) conversion of
residential units qualified for the protection of article seven-C of the
multiple dwelling law in buildings or portions thereof registered with
the New York city loft board as interim multiple dwellings pursuant to
such article to units which are in compliance with the standards of
safety and fire protection set forth in article seven-B of the multiple
dwelling law or to units which have a certificate of occupancy as class
A multiple dwellings; or (9) alterations or improvements commenced on or
after September first, nineteen hundred eighty-seven constituting a
substantial rehabilitation of a class A multiple dwelling, or a
conversion of a building or structure into a class A multiple dwelling,
as part of a program to provide housing for low and moderate income
households as defined by the department of housing preservation and
development pursuant to the rules and regulations promulgated pursuant
to subdivision m of this section, provided that such alterations or
improvements or conversions shall be aided by a grant, loan or subsidy
from any federal, state or local agency or instrumentality, including,
in the discretion of the department of housing preservation and
development, a subsidy in the form of a below market sale from the city
of New York; or (10) alterations or improvements to any private dwelling
or conversion of any private dwelling to a multiple dwelling or
conversion of any multiple dwelling to a private dwelling, provided that
such alterations, improvements or conversions are part of a project that
has applied for or is receiving benefits pursuant to this section and
shall be aided by a grant, loan or subsidy from any federal, state or
local agency or instrumentality. Such conversions, alterations or
improvements shall be completed within thirty-six months after the date
on which same shall be started except that such thirty-six month
limitation shall not apply to conversions of residential units which are
registered with the loft board in accordance with article seven-C of the
multiple dwelling law pursuant to paragraph eight of this subdivision.
Notwithstanding the foregoing, a sixty-month period for completion shall
be available for alterations or improvements undertaken by a housing
development fund company organized pursuant to article eleven of the
private housing finance law, which are carried out with the substantial
assistance of grants, loans or subsidies from any federal, state or
local governmental agency or instrumentality or which are carried out in
a property transferred from the city of New York if alterations and
improvements are completed within seven years after the date of
transfer. In addition, the department of housing preservation and
development may grant an extension of the period of completion for any
project carried out with the substantial assistance of grants, loans or
subsidies from any federal, state or local governmental agency or
instrumentality, if such alterations, improvements or conversions are
completed within sixty months from commencement of construction.
Provided, further, that such conversions, alterations or improvements
shall in any event be completed prior to December thirty-first, two
thousand seven. Exemption for conversions, alterations or improvements
pursuant to paragraph one, two, three, four, six, seven, eight or ten of
this subdivision shall continue for a period not to exceed fourteen
years and begin no sooner than the first tax period immediately
following the completion of such conversions, alterations or
improvements. Exemption for alterations or improvements pursuant to
paragraph five or nine of this subdivision shall continue for a period
not to exceed thirty-four years and shall begin no sooner than the first
tax period immediately following the completion of such alterations or
improvements. Such exemption shall be equal to the increase in the
valuation, which is subject to exemption in full or proportionally under
this subdivision for ten or thirty years, whichever is applicable. After
such period of time, the amount of such exempted assessed valuation of
such improvements shall be reduced by twenty percent in each succeeding
year until the assessed value of the improvements is fully taxable.
Provided, however, exemption for any conversions, alterations or
improvements, which are aided by a loan or grant under article eight,
eight-A, eleven, twelve, fifteen, or twenty-two of the private housing
finance law, section six hundred ninety-six-a or section ninety-nine-h
of the general municipal law, or section three hundred twelve of the
housing act of nineteen hundred sixty-four (42 U.S.C.A. 1452b), or the
Cranston-Gonzalez national affordable housing act, (42 U.S.C.A. 12701
et. seq.), or started after July first, nineteen hundred eighty-three by
a housing development fund company organized pursuant to article eleven
of the private housing finance law which are carried out with the
substantial assistance of grants, loans or subsidies from any federal,
state or local governmental agency or instrumentality or which are
carried out in a property transferred from the city of New York and
where alterations and improvements are completed within seven years
after the date of transfer may commence at the beginning of any tax
period subsequent to the start of such conversions, alterations or
improvements and prior to the completion of such conversions,
alterations or improvements. The assessed valuation of the land occupied
by such dwelling and any increase in assessed valuation resulting from
conversions, alterations, or improvements other than those made pursuant
to this section shall not be affected by the provisions of this section.
b-1. Notwithstanding the provisions of subdivision b of this section,
alterations, improvements or conversions of any building or structure
that are eligible for benefits pursuant to subdivision b of this section
except insofar as the gross cubic content of such building or structure
is increased thereby shall be eligible for such benefits insofar as the
gross cubic content of such building or structure is increased thereby
provided that:
(1) for all tax lots now existing or hereafter created, at least fifty
percent of the floor area of the completed building or structure
consists of the pre-existing building or structure that was converted,
altered or improved in accordance with subdivision b of this section,
and
(2) for tax lots now existing or hereafter created within the
following area in the borough of Manhattan, such conversions,
alterations or improvements are aided by a grant, loan or subsidy from
any federal, state or local agency or instrumentality: beginning at the
intersection of the United States pierhead line in the Hudson river and
the center line of Chambers street extended, thence easterly to the
center line of Chambers street and continuing along the center line of
Chambers street to the center line of Centre street, thence southerly
along the center line of Centre street to the center line of the
Brooklyn Bridge to the intersection of the Brooklyn Bridge and the
United States pierhead line in the East river, thence northerly along
the United States pierhead line in the East river to the intersection of
the United States pierhead line in the East river and the center line of
one hundred tenth street extended, thence westerly to the center line of
one hundred tenth street and continuing along the center line of one
hundred tenth street to its westerly terminus, thence westerly to the
intersection of the center line of one hundred tenth street extended and
the United States pierhead line in the Hudson river, thence southerly
along the United States pierhead line in the Hudson river to the point
of beginning.
(3) For purposes of this subdivision, "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.
(4) Nothing in this subdivision shall be construed to provide tax
abatement benefits pursuant to subdivision c of this section for the
costs attributable to the increased cubic content in any such building
or structure.
c. (1) Except as provided in paragraphs two, three and four of this
subdivision, the taxes upon any real property, including the land, may
be abated each year for a period of not more than twenty years by an
amount no greater than eight and one-third per centum of the reasonable
cost of eligible conversions, alterations or improvements provided in
paragraphs one through eight and paragraph ten of subdivision b of this
section provided that the abatement in taxes in any consecutive
twelve-month period shall in no event exceed the amount of taxes payable
in such twelve-month period; and provided further that alterations or
improvements pursuant to paragraph four of subdivision b of this section
shall only receive the benefits of this section if construction
commenced after January first, nineteen hundred seventy-eight and that
in no event shall the aggregate abatement exceed ninety per centum of
the reasonable cost of conversions, alterations or improvements provided
in paragraphs one, three, four, six, seven, and ten of subdivision b of
this section, or exceed fifty per centum of the reasonable cost of
conversions pursuant to paragraph one of subdivision b of this section
if construction commenced after January first, nineteen hundred
eighty-two and if such conversions are situated on any tax lots
bordering on, or south of, ninety-sixth street in the county of New York
to the extent such abatement is not otherwise restricted herein, or
exceed fifty per centum of the reasonable cost of conversions pursuant
to paragraphs two and eight of subdivision b of this section, or exceed
one hundred per centum of the reasonable cost of alterations or
improvements pursuant to paragraph five of subdivision b of this section
provided that where alterations or improvements pursuant to paragraphs
four and six of subdivision b of this section are done in conjunction
with a conversion pursuant to paragraph two of subdivision b of this
section, the aggregate abatement shall not exceed fifty per centum of
the reasonable cost. Notwithstanding the foregoing, the taxes upon real
property, including the land may be abated for a period of not more than
twenty years at eight and one-third per centum of the reasonable cost of
conversions pursuant to paragraph two of subdivision b of this section
where construction actually commenced in good faith prior to July first,
nineteen hundred eighty pursuant to an alteration permit issued by the
department of buildings prior to July first, nineteen hundred eighty
provided that the aggregate abatement shall not exceed ninety per centum
of the reasonable cost thereof and provided further that in no event
shall the abatement in taxes in any twelve-month period exceed the
amount of taxes payable in such twelve-month period. In no event,
however, shall the aggregate abatement for conversions, alterations or
improvements pursuant to subdivision b of this section exceed such
dollar limit per existing class A dwelling unit or additional unit
created by conversion to a class A multiple dwelling as may be
established pursuant to rules and regulations promulgated by the
department of housing preservation and development pursuant to
subdivision m of this section. Only those items of work set forth in the
itemized cost breakdown schedule contained in rules and regulations
promulgated by the department of housing preservation and development
pursuant to subdivision m of this section shall be eligible for tax
abatement. Such abatement shall commence on the later of July first,
nineteen hundred seventy-eight or the first day of the first tax quarter
following the completion of such construction and the filing for
benefits as provided in subdivision h of this section except that such
period of abatement may commence on the later of the first day of the
first tax quarter following commencement of any conversion, alteration
or improvement or (i) July first, nineteen hundred seventy-six, if aided
by a loan pursuant to article eight of the private housing finance law
and completed after December thirty-first, nineteen hundred
seventy-five; or (ii) July first, nineteen hundred seventy-seven, if
aided by a loan pursuant to article fifteen of the private housing
finance law; or (iii) July first, nineteen hundred eighty, if aided by a
loan pursuant to article eight-A of the private housing finance law; or
(iv) July first, nineteen hundred eighty, if aided by a loan pursuant to
section three hundred twelve of the housing act of nineteen hundred
sixty-four (42 U.S.C.A. �b); or (v) July first, nineteen hundred
ninety-two, if started after such date and aided by a loan or grant
under article eleven, twelve, or twenty-two of the private housing
finance law, section six hundred ninety-six-a or section ninety-nine-h
of the general municipal law, or the Cranston-Gonzalez national
affordable housing act (42 U.S.C.A. 12701 et seq.); or (vi) July first,
nineteen hundred eighty-eight, if started after such date by or on
behalf of a company not qualified under any of the above provisions,
which is a not-for-profit corporation qualified pursuant to section
501(c)(3) of the internal revenue code and which has entered into a
regulatory agreement with the local housing agency requiring operation
of the property as housing for low and moderate income persons and
families.
(2) In the case of alterations or improvements pursuant to paragraph
five of subdivision b of this section which are carried out with the
substantial assistance of grants, loans or subsidies from any federal,
state or local agency or instrumentality or any not-for-profit
philanthropic organization one of whose primary purposes is providing
low or moderate income housing or financed with mortgage insurance by
the New York city residential mortgage insurance corporation or the
state of New York mortgage agency or pursuant to a program established
by the federal housing administration for rehabilitation of existing
multiple dwellings in a neighborhood strategy area as defined by the
United States department of housing and urban development, the abatement
of taxes on such property, including the land, shall not exceed the
lesser of the actual cost of the alterations or improvements or one
hundred fifty per centum of the certified reasonable cost of the
alterations or improvements, as determined under regulations of the
department of housing preservation and development, and the annual
abatement of taxes shall not exceed twelve and one-half per centum of
such certified reasonable cost, provided that such abatement shall not
be effective for more than twenty years and the annual abatement of
taxes in any consecutive twelve-month period shall in no event exceed
the amount of taxes payable in such twelve-month period.
(3) In the case of alterations or improvements carried out with the
substantial assistance of grants, loans or subsidies from any federal,
state or local agency or instrumentality or any not-for-profit
philanthropic organization one of whose primary purposes is providing
low or moderate income housing, or financed with mortgage insurance by
the New York city residential mortgage insurance corporation or the
state of New York mortgage agency or pursuant to a program established
by the federal housing administration for rehabilitation of existing
multiple dwellings in a neighborhood strategy area as defined by the
United States department of housing and urban development where such
alterations or improvements are done on property located in census
tracts in which seventy-five percent or more of the population live in
households which earn fifty percent or less of the median household
income of the city, the abatement of taxes on such property, including
the land, shall not exceed the lesser of the actual cost of the
alterations or improvements or one hundred fifty per centum of the
certified reasonable cost of the alterations or improvements, as
determined under regulations of the department of housing preservation
and development, and the annual abatement of taxes shall not exceed
twelve and one-half per centum of such certified reasonable cost,
provided that such abatement shall not be effective for more than twenty
years and the annual abatement of taxes in any consecutive twelve-month
period shall in no event exceed the amount of taxes payable in such
twelve month period.
(4) In the case of alterations, improvements or conversions pursuant
to paragraph nine of subdivision b of this section, the abatement of
taxes on such property, including the land, shall not exceed the lesser
of the actual cost of the alterations or improvements or one hundred
fifty per centum of the certified reasonable cost of the alterations or
improvements, as determined under regulations of the department of
housing preservation and development, and the annual abatement of taxes
shall not exceed twelve and one-half per centum of such certified
reasonable cost, provided that such abatement shall not be effective for
more than twenty years and the annual abatement of taxes in any
consecutive twelve-month period shall in no event exceed the amount of
taxes payable in such twelve-month period.
d. The benefits of this section shall apply:
(1) to any multiple dwelling which is altered, improved or increased
in valuation with aid of a loan provided by the city of New York, the
New York city housing development corporation or the United States
department of housing and urban development for the elimination of
conditions dangerous to human life or detrimental to health, including
nuisances as defined in section three hundred nine of the multiple
dwelling law, or other rehabilitation or improvement whether or not all
of the units thereof were in existence prior to rehabilitation pursuant
to the provisions of: (i) article two, eight or eight-A of the private
housing finance law provided that such dwelling is made available solely
to persons or families of low income as defined in said articles, (ii)
article twelve of the private housing finance law, (iii) article fifteen
of the private housing finance law or (iv) any federal law where the
multiple dwelling is supervised or regulated by the United States
department of housing and urban development.
(2) except as hereinafter provided, to any building or structure which
is converted to a class A multiple dwelling or to any existing dwelling
which is substantially rehabilitated, and further provided that the
rents subsequent to conversion or substantial rehabilitation shall not
exceed such amount as may be fixed: (i) by the United States department
of housing and urban development, (ii) pursuant to the private housing
finance law of the state of New York, or (iii) pursuant to chapter three
or chapter four of title twenty-six of the code, provided that the
initial legal regulated rent for the dwelling units shall be the rent
charged and paid by the initial tenant and registered with the New York
state division of housing and community renewal. Buildings or structures
which are converted to class A multiple dwellings and existing dwellings
which are substantially rehabilitated shall contain bedrooms in a number
equal to at least fifty percent of the apartments created where an
alteration permit has been issued by the department of buildings prior
to April first, nineteen hundred eighty and seventy-five percent of the
apartments created where an alteration permit has been issued by the
department of buildings on or after April first, nineteen hundred eighty
provided, however, that if a building or structure is converted from a
non-residential use to a class A multiple dwelling and the units therein
contain an average floor area of one thousand square feet, such
requirement as to the number of bedrooms shall not be applicable and if
an existing dwelling is substantially rehabilitated, the seventy-five
percent bedroom requirement shall be reduced to the extent its
application would necessitate a reduction in the number of units which
are contained in the existing dwelling prior to commencement of
substantial rehabilitation.
(3) to any multiple dwelling, building or structure otherwise eligible
for any of the benefits of this section which:
(i) is operated exclusively for the benefit of persons or families who
are or will be entitled to occupancy by reason of ownership of stock or
membership in the corporate owner, or for the benefit of such persons or
families and other persons or families entitled to occupancy under
applicable provisions of law without ownership of stock or membership in
the corporate owner, or (ii) is owned as a condominium and is occupied
as the residence or home of three or more families living independently
of each other; provided, however, that, in addition to all other
conditions of eligibility for the benefits of this section, except for
multiple dwellings in which units have been newly created by substantial
rehabilitation of vacant buildings or conversions of non-residential
buildings, the availability of benefits under this section for such
multiple dwellings, buildings or structures shall be conditioned on the
following: (a) alterations or improvements to at least one building-wide
system are part of the application for benefits, and (b) (i) the
assessed valuation of such multiple dwelling, building, or structure,
including land, shall not exceed an average of thirty thousand dollars
per dwelling unit at the time of the commencement of the alterations or
improvements, and (ii) during the three years immediately preceding the
commencement of the alterations or improvements the average per room
sale price of the dwelling units or the stock allocated to such dwelling
units shall have been no greater than thirty-five percent of the maximum
mortgage amount for a single family home eligible for purchase by the
Federal National Mortgage Association; provided that if less than ten
percent of the dwelling units or an amount of stock less than the amount
allocable to ten percent of such dwelling units was not transferred
during such preceding three year period, eligibility for benefits shall
be conditioned upon the multiple dwelling, building, or structure having
an assessed valuation per dwelling unit of no more than twenty-five
thousand dollars at the time of the commencement of the alterations or
improvements. Provided, further, that such benefits shall be available
only for alterations or improvements commenced on or after June first,
nineteen hundred eighty-six.
Notwithstanding the foregoing, the benefits of this section shall be
available for any alterations or improvements commenced after August
seventh, nineteen hundred ninety-two for such multiple dwellings,
buildings or structures and shall be conditioned on the following: (1)
the application for benefits may include any item of work designated in
the rules adopted by the department of housing preservation and
development as a major capital improvement or asbestos abatement to the
extent such asbestos abatement is required by federal, state and local
law; and (2) (i) the assessed valuation of such multiple dwelling,
building or structure, including land, shall not exceed an average of
forty thousand dollars per dwelling unit at the time of the commencement
of the alterations or improvements; and (ii) the average per room sale
price of the dwelling units or the stock allocated to such dwelling
units shall have been no greater than thirty-five percent of the maximum
mortgage amount for a single family home eligible for purchase by the
Federal National Mortgage Association during the three years immediately
preceding the commencement of the alterations or improvements; provided
that if less than ten percent of the dwelling units or an amount of
stock less than the amount allocable to ten percent of such dwelling
units was not transferred during such preceding three year period,
eligibility for benefits shall be conditioned upon the multiple
dwelling, building, or structure having an assessed valuation per
dwelling unit of no more than forty thousand dollars at the time of the
commencement of the alteration or improvement. Notwithstanding the
foregoing, benefits shall also be available under this section for work
completed in any such multiple dwelling, building or structure within
the first three years of its conversion to cooperative or condominium
ownership, as evidenced by the date on which the first closing in a
condominium to a bona fide purchaser occurs or in the case of a
cooperative, the date on which the shares allocable to a unit are
conveyed to a bona fide purchaser, provided, however, that the
availability of such benefits for conversions, alterations or
improvements commenced prior to June first, nineteen hundred eighty-six,
except with respect to governmentally assisted projects as defined in
regulations issued by the department of housing preservation and
development, shall be conditioned upon the completion of such
conversions, alterations or improvements within three years after
acceptance for filing of the prospectus to establish such cooperative or
condominium entity by the attorney general of the state of New York. The
maximum amount of tax abatement which may be received in any tax period
under this section by any such multiple dwelling, building or structure
for any alterations and improvements commenced three or more years after
its initial conversion to cooperative or condominium ownership shall be
limited to an amount not in excess of two thousand five hundred dollars
per dwelling unit of the certified reasonable cost of the alterations or
improvements as determined under regulations of the department of
housing preservation and development.
(4) provided that, in the case of any building or structure: (i) in
which conversion, alteration or improvement commences on or after
January first, nineteen hundred eighty-two, and (ii) which is located in
the county of New York within an area designated herein as a minimum tax
zone, the benefits of this section shall not be applied to abate or
reduce the taxes upon the land portion of such real property, which
shall continue to be taxed based upon the assessed valuation of the land
and the applicable tax rate at the time such taxes are levied; provided,
however, that the foregoing limitation with respect to abatement of
taxes shall not apply:
(A) to any multiple dwelling which is eligible for benefits based upon
moderate rehabilitation pursuant to paragraph five of subdivision b of
this section, or (B) to any multiple dwelling which is governmentally
assisted as such term is defined in regulations to be promulgated by the
department of housing preservation and development pursuant to
subdivision m of this section.
(5) provided that in the case of any building or structure: (i) in
which conversion, alteration or improvement commences on or after
January first, nineteen hundred eighty-two, and (ii) which is located in
the county of New York within an area designated herein as a tax
abatement exclusion zone, the benefits of this section shall not be
applied to abate or reduce the taxes upon such real property, which
shall continue to be taxed based upon the assessed valuation of the land
and the improvements and the applicable tax rate at the time such taxes
are levied; provided, however, that the foregoing limitation shall not
deprive such real property of any benefits of exemption from taxation of
an increase in assessed valuation to which it is entitled pursuant to
this section; provided, however, that the foregoing limitation with
respect to abatement of taxes shall not apply:
(A) to any alteration or improvement designated as a major capital
improvement, by the regulations promulgated by the department of housing
preservation and development pursuant to subdivision m of this section,
provided that the maximum amount of tax abatement which may be received
in any tax period under this section by any such multiple dwelling,
building or structure for any alterations and improvements shall be
limited to an amount not in excess of twenty-five hundred dollars per
dwelling unit of the certified reasonable cost of the alterations and
improvements as determined under regulations of the department of
housing preservation and development, or (B) to any multiple dwelling
which is governmentally assisted as such term is defined by said
regulations.
(6) For purposes of this subdivision, the minimum tax zone in the
county of New York shall be as follows: all tax lots now existing or
hereafter created within the following designated area or adjacent to
either side of any street forming the boundary of such designated area,
which area is bounded and described as follows:
BEGINNING at Central Park West and 86th Street; thence easterly along
86th Street to the East River; thence southerly along the easterly
boundary of New York county to 23rd Street; thence westerly along 23rd
Street to Third Avenue; thence southerly along Third Avenue to 14th
Street; thence westerly along 14th Street to Broadway; thence southerly
along Broadway to Houston Street; thence westerly along Houston Street
to West Street; thence northerly along West Street to 14th Street;
thence easterly along 14th Street to 9th Avenue; thence northerly along
Ninth Avenue to 57th Street; thence westerly along 57th Street to the
Hudson River; thence northerly along the westerly boundary of New York
county to 72nd Street; thence easterly along 72nd Street to Central Park
West; thence northerly along Central Park West to 86th Street and
Central Park West, which is the place of beginning.
(7) For purposes of this subdivision, the tax abatement exclusion zone
in the county of New York shall be as follows: all tax lots within the
following designated area or adjacent to either side of any street
forming the boundary of such designated area or adjacent to either side
of any street designated as included in such area, which area is bounded
and described as follows:
BEGINNING at the intersection of 96th Street and Central Park West;
thence easterly to Park Avenue; thence southerly along Park Avenue to
the intersection of Park Avenue and 72nd Street; thence easterly along
72nd Street to York Avenue; thence northerly along York Avenue to the
Franklin Delano Roosevelt Drive; thence north-westerly along the
Franklin Delano Roosevelt Drive to as far as 96th Street; thence
easterly to the easterly border of New York county; thence southerly
along such border to 34th Street; thence westerly along 34th Street to
8th Avenue; thence northerly, along 8th Avenue and Central Park West as
far as 96th Street, which is the place of beginning. Additionally, the
following North/South and East/West thoroughfares shall be included in
the tax abatement exclusion zone: 96th Street between Central Park West
and the East River; 86th Street between Central Park West and the East
River; 79th Street between West End Avenue and the East River; 72nd
Street between West End Avenue and the East River; West End Avenue from
72nd Street to 86th Street; and Riverside Drive from 72nd Street to 96th
Street.
(8) Limitation on benefits. (a) The provisions of this paragraph shall
apply to all conversions, alterations and improvements except the
following:
(i) alterations or improvements under paragraphs four, six and seven
of subdivision b of this section, where carried out:
(A) with the substantial assistance of grants, loans or subsidies from
any federal, state or local agency or instrumentality, or any
not-for-profit philanthropic organization one of whose primary purposes
is providing low or moderate incoming housing; or
(B) with mortgage insurance by the New York city residential mortgage
insurance corporation or the state of New York mortgage agency; or
(C) in the areas bounded and described as follows:
AREAS IN THE COUNTY OF BRONX:
MOTT HAVEN--The area bounded by East 159th Street; Third Avenue; East
161st Street; Prospect Avenue; East 149th Street; Jackson Avenue;
Bruckner Expressway; Major Deegan Expressway; Morris Avenue; East 149th
Street and Park Avenue.
ALDUS GREEN--The area bounded by East 169th Street; East 167th Steet;
Westchester Avenue; Sheridan Expressway; Longfellow Avenue; Randall
Avenue; Tiffany Street; Longwood Avenue; Bruckner Expressway; East 149th
Street; and, Prospect Avenue.
MORRISANIA--The area bounded by Cross Bronx Expressway; Park Avenue;
East 174th Street; Washington Avenue; Cross Bronx Expressway; Arthur
Avenue; Crotona Park North; Waterloo Place; East 175th Street; Southern
Boulevard; Cross Bronx Expressway; Sheridan Expressway; East 167th
Street; East 169th Street; Prospect Avenue; East 161st Street; Third
Avenue; East 159th Street; Park Avenue; and, Webster Avenue.
HIGHBRIDGE-CONCOURSE--The area bounded by Washington Bridge-Cross
Bronx Expressway; Webster Avenue; Park Avenue; East 149th Street; and,
the Harlem River.
WEST TREMONT--The area bounded by West Fordham Road; East Fordham
Road; Webster Avenue; Cross Bronx Expressway; George Washington Bridge;
and, the Harlem River.
BELMONT-BRONX PARK SOUTH--The area bounded by Southern Boulevard;
Bronx Park South; Boston Road; East 180th Street; Bronx River Parkway;
Cross Bronx Expressway; Crotona Parkway; East 175th Street; Waterloo
Place; Crotona Park North; Arthur Avenue; Cross Bronx Expressway;
Washington Avenue; East 174th Street; Park Avenue; Cross Bronx
Expressway; and, Webster Avenue.
KINGSBRIDGE--The area bounded by Van Cortlandt Park South; West Gun
Hill Road; Jerome Avenue; Bainbridge Avenue; East 211th Street and its
prolongation; Conrail right of way; Bedford Park Boulevard; Webster
Avenue; East Fordham Road; West Fordham Road; the Harlem River; Marble
Hill Avenue; West 230th Street; Riverdale Avenue; Greystone Avenue;
Waldo Avenue; Manhattan College Parkway; and, Broadway.
SOUND VIEW--The area bounded by the Cross Bronx Expressway; Bronx
River Parkway; East Tremont Avenue; White Plains Road; Randall Avenue;
Olmstead Avenue; Lacombe Avenue; Westchester Creek; East River; Bronx
River; Westchester Avenue; and, Sheridan Expressway.
PELHAM PARKWAY--The area bounded by Adee Avenue; Mathews Avenue;
Williamsbridge Road; Pelham Parkway South; Yates Avenue; Lydig Avenue;
Williamsbridge Road; Neil Avenue; Bogart Avenue; East Tremont Avenue;
Bronx River Parkway; and, Bronx Park East.
AREAS IN THE COUNTY OF KINGS:
WILLIAMSBURG--The area bounded by Metropolitan Avenue; Union Avenue;
Conselyea Street; Wood Point Road; Frost Street; Morgan Avenue; Meserole
Street; Bushwick Avenue; Flushing Avenue; Union Avenue; Division Avenue;
and, the East River.
BEDFORD-STUYVESANT--The area bounded by Myrtle Avenue; Broadway; Ralph
Avenue; Atlantic Avenue; and, Nostrand Avenue.
BUSHWICK--The area bounded by Flushing Avenue; Cypress Avenue; Menahan
Street; St. Nicholas Avenue; Gates Avenue; Wyckoff Avenue; Eldert
Street; Irving Avenue; Chauncey Street; Central Avenue; property line of
the Cemetery of the Evergreens; Conway Street; and, Broadway.
EAST-NEW YORK--The area bounded by Jamaica Avenue; Elderts Lane;
Atlantic Avenue; Fountain Avenue; New Lots Avenue; and, Sheffield
Avenue.
SOUTH BROOKLYN (A)--The area bounded by The Buttermilk Channel;
Congress Street; Hicks Street; Hamilton-Gowanus Parkway; the Gowanus
Canal; and, the Gowanus Bay.
SOUTH BROOKLYN (B)--The area bounded by Fourth Avenue; Pacific Street;
Flatbush Avenue; Sixth Avenue; and, 15th Street.
SUNSET PARK--The area bounded by the Upper New York Bay; the Gowanus
Bay; 15th Street; Prospect Park S.W.; Coney Island Avenue; Caton Avenue;
Fort Hamilton Parkway; 37th Street; Eighth Avenue; Long Island Railroad
right of way; Gowanus Expressway; 64th Street; Shore Parkway; and, the
Long Island Railroad right of way.
CROWN HEIGHTS--The area bounded by Pacific Street; Vanderbilt Avenue;
Atlantic Avenue; Ralph Avenue; East New York Avenue; Utica Avenue;
Winthrop Street; Flatbush Avenue; Parkside Avenue; Ocean Avenue; Empire
Boulevard; Washington Avenue; Eastern Parkway; Grand Army Plaza; and,
Flatbush Avenue.
CONEY ISLAND--The area bounded by the Coney Island Creek; Stillwell
Avenue; the Boardwalk West; and, West 37th Street.
FLATBUSH--The area bounded by Parkside Avenue; Flatbush Avenue;
Winthrop Street; New York Avenue; Clarendon Road; East 31st Street;
Newkirk Avenue; Nostrand Avenue; Foster Avenue; New York Avenue; Avenue
H; Flatbush Avenue; Avenue K; and, Coney Island Avenue.
EAST FLATBUSH--The area bounded by Clarkson Avenue; Utica Avenue; East
New York Avenue; East 98th Street; Church Avenue; Ralph Avenue;
Clarendon Road; and, New York Avenue.
BROWNSVILLE--The area bounded by Broadway; Rockaway Avenue; Atlantic
Avenue; East New York Avenue; Christopher Avenue; Glenmore Avenue;
Powell Street; Sutter Avenue; Van Sinderen Avenue; Dumont Avenue; Junius
Street; Livonia Avenue; Stone Avenue; Linden Boulevard; Rockaway Avenue;
Hegeman Avenue; Hopkinson Avenue; Riverdale Avenue; East 98th Street;
East New York Avenue; Ralph Avenue; Atlantic Avenue; and, Saratoga
Avenue.
AREAS IN THE COUNTY OF NEW YORK:
LOWER EAST SIDE--The area bounded by East 14th Street; the East River;
Delancey Street; Chrystie Street; East Houston Street; and, Avenue A.
MANHATTAN VALLEY--The area bounded by Cathedral Parkway (West 110th
Street); Central Park West; West 100th Street; and, Broadway.
EAST HARLEM--The area bounded by East 142nd Street; the Harlem River;
East 96th Street; and, Fifth Avenue.
CENTRAL HARLEM--The area bounded by West 145th Street; the Harlem
River; Fifth Avenue; Cathedral Parkway (West 110th Street); Morningside
Avenue; West 123rd Street; St. Nicholas Avenue; West 141st Street; and,
Bradhurst Avenue.
HAMILTON HEIGHTS--The area bounded by West 155th Street; Bradhurst
Avenue; West 141st Street; Convent Avenue; West 140th Street; Amsterdam
Avenue; West 133rd Street; and, Riverside Drive.
WASHINGTON HEIGHTS--The area bounded by the Harlem River; Teunissen
Place; West 230th Street; Marble Hill Lane; the Harlem River; West 155th
Street; and, the Hudson River.
AREAS IN THE COUNTY OF QUEENS:
HALLETS POINTS--The area bounded by the East River-East Channel,
Hallets Cove and Pot Cove; Hoyt Avenue South; 21st Street; 31st Avenue;
Vernon Boulevard; and, 35th Avenue.
JACKSON HEIGHTS-CORONA-EAST ELMHURST--The area bounded by Grand
Central Parkway; Long Island Railroad right of way; 110th Street; Corona
Avenue; Long Island Expressway; Junction Boulevard; Roosevelt Avenue;
and, Brooklyn-Queens Expressway East.
RIDGEWOOD--The area bounded by Grand Avenue; Rust Street; 59th Drive;
60th Street; Bleecker Street; Forest Avenue; Myrtle Avenue; the Long
Island Railroad right of way; and, Queens-Brooklyn boundary line.
JAMAICA SOUTH--The area bounded by the Long Island Railroad right of
way; New York Boulevard; Southern Parkway (Sunrise Highway) and, Van
Wyck Expressway.
FAR ROCKAWAY--The area bounded by the Jamaica Bay-Mott Basin;
Queens-Nassau boundary line; Far Rockaway Beach; Beach 32nd Street; and,
Norton Drive.
AREAS IN THE COUNTY OF RICHMOND:
PORT RICHMOND--The area bounded by the Kill Van Kull; Jewett Avenue
and its prolongation; Forest Avenue; and, the Willow Brook Expressway.
NEW BRIGHTON--The area bounded by the Kill Van Kull; Westervelt
Avenue; Brook Street; Castleton Avenue; and, North Randall Avenue and
its prolongation.
STAPLETON--The area bounded by Victory Boulevard; the Upper New York
Bay; Vanderbilt Avenue; Van Duzer Street; Cebra Avenue; and, St. Pauls
Avenue.
FOX HILLS--The area bounded by Vanderbilt Avenue; the Upper New York
Bay; the Staten Island Rapid Transit Railway right of way; and, the
Staten Island Expressway.
(D) pursuant to a program established by the federal housing
administration, federal national mortgage association, federal home loan
mortgage corporation or government national mortgage association for the
rehabilitation of existing multiple dwellings for persons of low or
moderate income, or a program of mortgage insurance for the
rehabilitation of existing multiple dwellings pursuant to section two
hundred twenty-three-f of the national housing act as amended, or a
program of mortgage insurance established by the federal housing
administration for the rehabilitation of existing multiple dwellings for
persons of low or moderate income; provided that properties receiving
benefits under such programs are located in a neighborhood strategy
area, as defined, by the United States department of housing and urban
development, or in one of the areas listed in subparagraph (C) of this
paragraph.
(ii) alterations or improvements under paragraph five of subdivision b
of this section; and
(iii) conversion of residential units qualified for the protection of
article seven-C of the multiple dwelling law under paragraph eight of
subdivision b of this section.
(b) Abatement limitations. (i) The amount of abatement under
subdivision c of this section shall not exceed the certified reasonable
cost of the conversion, alteration or improvement, as determined under
regulations of the department of housing preservation and development,
provided that the amount of certified reasonable cost eligible for
abatement under this section shall not exceed fifteen thousand dollars
for a dwelling unit of three and one-half rooms, as determined under the
applicable zoning resolution, and a comparable amount for dwelling units
of other sizes, determined under regulations of the department of
housing preservation and development, and further provided that the
amount of certified reasonable cost eligible for abatement under this
section may exceed fifteen thousand dollars or such comparable amount
per dwelling unit, but not more than twenty-five percent above such
amount, upon application of the property owner and a determination by
the department of housing preservation and development that:
(A) in the case of a conversion under paragraph one, two or three of
subdivision b of this section, the increased cost is necessary to comply
with applicable law; or
(B) in the case of an alteration or improvement under paragraph seven
of subdivision b of this section, the increased cost is necessary to
eliminate the unhealthy or dangerous conditions or replace the
inadequate and obsolete facilities in a satisfactory manner; or
(C) in the case of an alteration or improvement under paragraph six of
subdivision b of this section, the increased cost is necessary to
conserve energy in a satisfactory manner; or
(D) in the case of an alteration or improvement under paragraph four
of subdivision b of this section, the increased cost, to the extent such
cost is not offset by any and all tax credits received as a result of
the alteration or improvement, is necessary to comply with any provision
of law regulating historic or landmark buildings or structures.
(ii) Notwithstanding any other provisions of this subparagraph, and in
addition to all other conditions of eligibility for the benefits of this
section, the availability of abatements pursuant to subdivision c of
this section for any multiple dwellings, buildings or structures not
owned as a condominium or cooperative, except for multiple dwellings in
which units have been newly created by substantial rehabilitation of
vacant buildings or conversions of non-residential buildings, shall be
conditioned on the assessed valuation of such multiple dwelling,
building or structure, including land, not exceeding an average of
thirty thousand dollars per dwelling unit at the time of commencement of
the alterations or improvements, provided, however, that such average
shall not exceed $40,000 per dwelling unit at the time of commencement
of the alteration or improvement for alterations or improvements
commenced after the effective date of this local law, which added this
amendment.
(c) Exemption limitations. (i) The increase in assessed valuation of
the real property resulting from the conversion, alteration or
improvement under subdivision b of this section, shall be exempt from
taxation as provided in this section, only to the extent provided in
this subparagraph, provided that this subparagraph shall not apply to
any conversions, alterations or improvements commenced on or after June
first, nineteen hundred eighty-six, unless such conversions, alterations
or improvements are carried out in buildings or structures located in
the borough of Manhattan south of or adjacent to the south side of one
hundred tenth street. The amount of the increased assessed valuation
that is exempt from taxation shall depend on the amount of the total
assessed value per dwelling unit calculated by dividing the amount of
the total assessed valuation of the property, as determined under the
real property tax law, by the number of dwelling units in the building
after completion of the conversion, alteration or improvement. The
amount of increased assessed valuation that will be exempt from taxation
for buildings with total assessed valuation per dwelling unit of less
than thirty-eight thousand dollars shall be calculated pursuant to the
following formula: (A) any portion of total assessed valuation of the
property attributable to the first eighteen thousand dollars of total
assessed valuation per dwelling unit, to the extent it represents
increased assessed valuation, shall be one hundred percent exempt; (B)
any portion of total assessed valuation attributable to the next four
thousand dollars of total assessed valuation per dwelling unit, to the
extent it represents increased assessed valuation, shall be seventy-five
percent exempt; (C) any portion of total assessed valuation attributable
to the next four thousand dollars of total assessed valuation per
dwelling unit, to the extent it represents increased assessed valuation,
shall be fifty percent exempt; (D) any portion of total assessed
valuation attributable to the next four thousand dollars of total
assessed valuation per dwelling unit, to the extent it represents
increased assessed valuation, shall be twenty-five percent exempt; (E)
any portion of total assessed valuation attributable to the next eight
thousand dollars of total assessed valuation per dwelling unit, to the
extent it represents increased assessed valuation per dwelling unit,
shall be fully taxable. Property with a total assessed valuation per
dwelling unit of thirty-eight thousand dollars or more shall not be
eligible for a tax exemption under this section.
(ii) In calculating the amount of increased assessed valuation that
will be exempt from taxation pursuant to the formula in clause (i) of
this subparagraph, the full amount of total assessed valuation that does
not represent increased assessed valuation shall be applied in such
formula prior to the inclusion of any amount of increased assessed
valuation.
(iii) Where the real property is occupied in part for residential
purposes and in part for non-residential purposes, the assessed
valuation of the property shall be appropriately allocated between the
residential and non-residential portions. In computing the total
assessed valuation per dwelling unit under this subparagraph, only the
amount of valuation so allocated to the residential portion shall be
considered.
(iv) Commencing with the assessment roll for the year nineteen hundred
eighty-four, where there has been a change in the level of assessment
from the assessment roll of the prior year of properties receiving
exemptions under this section, the department of finance may petition
the state board to certify the percentage of such change for the
purposes of this section. In such petition, the department of finance
shall submit such information as the state board shall require in order
to certify the percentage of such change. The state board may also make
such a certification on its own motion. Upon receipt of such
certification from the state board, the department of housing
preservation and development may modify the dollar values of total
assessed valuation per dwelling unit in clause (i) of this subparagraph
to reflect the percentage change in the level of assessment as shown in
such certification. As used in this subparagraph, the term "change in
the level of assessment" means the net increase or decrease in the
assessed valuation of properties in the assessing unit that received
exemptions under this section in the current year as compared to those
that received exemptions under this section in the prior year as a
result of assessing such properties at a higher or lower ratio of full
value.
(v) (A) Notwithstanding the provisions of clause (i) of this
subparagraph, the department of housing preservation and development may
reduce or remove the limitations on the exemption from taxation provided
in such clause with respect to a particular property undergoing
alteration or improvement, upon application of the property owner and a
determination by such department that the increased benefit will
increase the number of dwelling units that will be affordable to persons
of low and moderate income, and the increased benefit is necessary to
make economically viable units or improvement in the quality of dwelling
units that will be affordable to persons of low or moderate income.
(B) As used in this subparagraph, the term "persons of low or moderate
income" shall mean persons who would qualify for housing subsidies
pursuant to section two hundred thirty-five of the national housing act,
as amended, at one hundred thirty-five percent of the income limitations
provided therein.
(C) Upon receiving an application under this subparagraph in proper
form, the department of housing preservation and development shall
immediately submit it to the community board for the area in which the
project is located, which may, within forty-five days of receiving it
and after a public hearing, make recommendations to the department as to
the application. The department shall act on the application within
sixty days of receiving it from the property owner in proper form, but
not before expiration of the time for the community board to make its
recommendations, unless the board has acted sooner.
(d) The department of housing preservation and development may set
forth preliminarily the terms of a determination under subparagraph (b)
or (c) of this paragraph prior to the commencement of the conversion,
alteration or improvement. Any such determination shall take effect
after completion of the work in accordance with the terms of the
application made by the property owner.
(e) Any determination of the department of housing preservation and
development to increase an abatement under subparagraph (b) of this
paragraph, or to reduce or remove the exemption limitations under
subparagraph (c) of this paragraph shall state the basis for the
determination and the data on which the determination was based. Such
determination shall be published in the City Record for five consecutive
days after the determination is rendered.
d-1. (1) A group of multiple dwellings which was developed as a
planned community and which is owned as two separate condominiums
containing a total of ten thousand or more dwelling units shall be
eligible for tax exemption and abatement as provided in this
subdivision.
(2) any increase in assessed valuation resulting from alterations or
improvements financed with substantial governmental assistance to one or
more multiple dwellings in a planned community described in paragraph
one of this subdivision shall be exempt from taxation for local
purposes. Such exemption shall be equal to the increase in the valuation
which is subject to exemption under this paragraph for thirty years.
After such period of time, the amount of such exempted assessed value
shall be reduced by twenty percent in each succeeding year until the
assessed value of the alterations or improvements is fully taxable. Such
exemption may commence at the beginning of any tax quarter subsequent to
the start of such alterations or improvements. In no event shall such
alterations or improvements directly or indirectly result in an
equalization increase in the assessed valuation of any multiple dwelling
forming part of the planned community where such alterations or
improvements are performed.
(3) the taxes on a planned community described in paragraph one of
this subdivision, including the land, may be abated by an amount not to
exceed the greater of (i) one hundred fifty per centum of the certified
reasonable cost of the alterations or improvements, as determined under
the rules of the department of housing preservation and development, and
(ii) the construction cost of the alterations or improvements identified
in such rules. Such abatement shall not be effective for more than
twenty years and the annual abatement of taxes in any consecutive
twelve-month period shall not be greater than ten per centum of the
total abatement granted and shall not exceed the amount of taxes payable
in such consecutive twelve-month period. Such abatement shall begin no
sooner than the first quarterly tax bill immediately following the
completion of such alterations or improvements. The limitations set
forth in the second paragraph of paragraph three of subdivision d of
this section for multiple dwellings, buildings and structures owned as
condominiums shall be inapplicable to benefits granted pursuant to this
subdivision. Abatement benefits granted pursuant to this subdivision
shall be apportioned among all of the condominium tax lots within the
condominium in which the alterations or improvements are made, although
such alterations or improvements may have been made to one or fewer than
all of the multiple dwellings therein.
(4) in the event that multiple alterations or improvements are
undertaken in a planned community described in paragraph one of this
subdivision and separate applications for benefits therefor are made,
all requirements concerning physical condition of and compliance with
law by the multiple dwellings in such planned community shall apply only
upon completion of all such alterations or improvements, provided that
all such alterations or improvements are completed within six years.
(5) except as provided in this subdivision, all of the requirements
imposed by this section on projects described in subdivision b of this
section shall be applicable to alterations or improvements granted
benefits pursuant to this subdivision.
(6) this subdivision shall be applicable only to alterations or
improvements completed prior to December thirty-first, two thousand
five.
(7) Alterations and improvements receiving tax benefits under this
subdivision shall not be used as the basis of an application for a major
capital improvement rent increase under state laws governing rent
control and rent stabilization, provided, however, that such alterations
and improvements may be eligible for a major capital improvement
increase in an amount not to exceed the amount of the decrease in rents
that occurs as a result of the installation of individual electrical
metering for the residential units. Such major capital improvement
increase shall be implemented on a per unit basis.
e. Notwithstanding any provision of this section or any other section
of the code to the contrary, where such dwelling is in an area where a
plan of redevelopment, program of neighborhood improvement, housing
maintenance, demonstration rehabilitation or concentrated code
enforcement is being carried out, the rents subsequent to conversion,
alteration or improvement may exceed the maximum amount allowable
pursuant to chapter four of title twenty-six of the code where necessity
for the adjustment of such rents is certified by the department of
housing preservation and development.
f. Subject to the provisions of subdivision d of this section, the
department of housing preservation and development shall determine and
certify the reasonable cost of any such conversions, alterations or
improvements and eligibility for the benefits of this section and for
that purpose may adopt rules and regulations, administer oaths to and
take the testimony of any person, including but not limited to the owner
of such property, may issue subpoenas requiring the attendance of such
persons and the production of such bills, books, papers or other
documents as it shall deem necessary, may make preliminary estimates of
the maximum reasonable cost of such conversions, alterations or
improvements, may establish maximum allowable costs of specified units,
fixtures or work in such conversions, alterations or improvements, and
may require the submission of plans and specifications of such
conversions, alterations or improvements, and may require the submission
of plans and specifications of such conversions, alterations or
improvements before the start thereof. Applications for certification
shall include all bills and other documents showing the cost of
construction or such other evidence of such cost as shall be
satisfactory to the department of housing preservation and development,
including, without limitation, certification of cost by a certified
public accountant in accordance with generally accepted accounting
principles. Applications for certification for a building eligible for
benefits pursuant to paragraph three of subdivision d of this section,
for alterations or improvements completed more than three years after
its conversion to cooperative or condominium ownership, shall include
such documentation of the sale price of dwelling units or stock
allocated to such dwelling units as may be required by the department of
housing preservation and development, including but not limited to
certification of sales price by a certified public accountant. In
addition, such applications shall contain the consent of the applicant
to allow the department of housing preservation and development access
to records, including but not limited to other tax records, as the
department may deem appropriate to enforce such conditions of
eligibility. Applications for certification filed on or after January
first, nineteen hundred seventy-nine pursuant to paragraphs one through
seven and paragraph nine of subdivision b of this section shall be made
after completion and within forty-eight months following the start of
construction of the conversion, alteration or improvement, except that
applications for certification for alterations or improvements
undertaken by a housing development fund company organized pursuant to
article eleven of the private housing finance law, which are carried out
with the substantial assistance of grants, loans or subsidies from any
federal, state or local governmental agency or instrumentality or which
are carried out in a property transferred from the city of New York
shall be made after completion and within seventy-two months following
the start of the construction of the alteration or improvement.
Provided, however, the department of housing preservation and
development is empowered to grant an extension of the period for
application for any project carried out with the substantial assistance
of loans, grants or subsidies from any federal, state or local
governmental agency or instrumentality, if such application is made
within seventy-two months from commencement of construction.
Applications for certification pursuant to paragraph eight of
subdivision b of this section shall be filed within twelve months of the
date of completion as provided by such subdivision.
g. To the end that conversions, alterations or improvements in such
property shall interfere as little as practicable with the clearance,
rehabilitation or rebuilding of sub-standard and insanitary areas and
shall be confined to buildings and structures which are structurally
sound and comply with applicable provisions of law, eligibility for the
benefits of this section shall be restricted to such buildings and
structures which the department of housing preservation and development
shall certify:
(1) to be structurally sound and to comply with applicable provisions
of law, as determined by the department of buildings, which
certification shall be evidenced by a certificate describing the
property involved; and
(2) if in an area for which a final plan of clearance, replanning,
reconstruction, rehabilitation, or redevelopment has been approved
pursuant to article fifteen of the general municipal law, or if in an
area for which an urban renewal plan or tests, studies or demonstrations
have been approved pursuant to article fifteen of the general municipal
law, to be improved in conformity with such replanning, reconstruction,
rehabilitation, redevelopment, tests, studies, demonstrations or plan;
and
(3) if in an area where a program of local neighborhood improvement or
housing maintenance is being carried out, to be in conformity with such
program.
h. Application forms for the benefits of this section shall be filed
with the department of finance within the time periods to be established
by rules and regulations promulgated by the department of housing
preservation and development pursuant to subdivision m of this section.
The department of finance shall certify the amount of taxes to be
abated, pursuant to the certification of the department of housing
preservation and development as herein provided. No such application
shall be accepted unless accompanied by a copy of the certificate of the
department of housing preservation and development both as to reasonable
cost and as to eligibility as provided in subdivision f of this section.
i. The benefits of this section shall not apply:
(1) except as provided in subdivision d of this section, to any
existing dwelling which is not subject to the provisions of the
emergency housing rent control law or to the city rent and
rehabilitation law or to the city rent stabilization law or to the
private housing finance law or to any federal law providing for
supervision or regulation by the United States department of housing and
urban development;
(2) to any private dwelling, notwithstanding any other provision of
this section, unless it is in an area where a plan of redevelopment or
program of neighborhood improvement, housing maintenance, demonstration
rehabilitation or concentrated code enforcement is being carried out and
the department of housing preservation and development finds that the
conversion, alteration or improvement is in conformity with such plan of
redevelopment, or program of neighborhood improvement, housing
maintenance, demonstration rehabilitation or concentrated code
enforcement; provided that, notwithstanding the foregoing, for the
purposes of this section, a class A multiple dwelling may be deemed to
include any garden-type maisonette dwelling project consisting of a
series of dwelling units which together and in their aggregate were
arranged or designed to provide three or more apartments and are
provided as a group collectively with all essential services such as,
but not limited to, water supply, house sewers and heat, and which are
in existence and operated as a unit under single ownership on the date
upon which an application for the benefits of this section is received
by the department of housing preservation and development, even though
certificates of occupancy were issued for portions thereof as private
dwellings;
(3) to any property receiving tax exemption or abatement concurrently
for rehabilitation or new construction under any other provision of New
York state or New York city law with the exception of any alteration or
improvement to property receiving such tax exemption or abatement under
the provisions of the private housing finance law, provided, however,
that the benefits of this section shall not apply to any alterations or
improvements done in connection with the refinancing, pursuant to
section 223f of the national housing act, as amended, of a housing
project organized pursuant to article two and article four of the
private housing finance law;
(4) to any multiple dwelling for ordinary repairs and normal
replacement of maintenance items, as provided in paragraph one of
subdivision a, hereof in the event that the dwelling thereof is
receiving the benefits of this section for other ordinary repairs and
normal replacement of maintenance items as of the December thirty-first
preceding the date of application;
(5) to the conversion of any building or structure, or portion
thereof:
(i) (a) which is located within any district in the county of New York
where a floor area ratio, as that term is defined in the zoning
resolution of the city of New York, of fifteen or greater is permitted
by said resolution, or (b) located in the city of New York where
residential conversion as of right is not permitted by the zoning
resolution, provided, however, that notwithstanding anything to the
contrary contained in this subparagraph, the benefits of this section
shall apply to any building or structure or portion thereof which was
purchased from the city of New York on or after January first, nineteen
hundred and eighty and prior to December thirty-first, nineteen hundred
and eighty-four and which was granted a variance for a conversion to
residential use by the board of standards and appeals prior to nineteen
hundred and eighty-four which variance has expired, and which has been
granted a variance for a conversion to residential use by the board of
standards and appeals on or after January first, nineteen hundred and
ninety-four and prior to June thirtieth, nineteen hundred and
ninety-five, and
(ii) where such benefits are eliminated by regulations to be
promulgated by the department of housing preservation and development
pursuant to subdivision m of this section, unless, in the case of a
building or structure in the county of New York, construction actually
commenced prior to January first, nineteen hundred eighty-two, pursuant
to an alteration permit, or, in the case of a building or structure in
the counties of Bronx, Kings, Queens and Richmond, construction actually
commenced prior to October first, nineteen hundred eighty-three,
pursuant to an alteration permit. A copy of any proposed regulation
pursuant to this paragraph shall be transmitted to the city council not
less than sixty days prior to its publication in the City Record,
pursuant to section eleven hundred five of the charter, and
(iii) provided that the provisions of this paragraph shall not apply
to conversions pursuant to paragraph eight of subdivision b of this
section.
(6) to any conversion of or alteration or improvement, commenced on or
after July first, nineteen hundred eighty-two, to any class B multiple
dwelling or class A multiple dwelling used in whole or in part for
single room occupancy, regardless of the status or use of the building
after the conversion, alteration or improvement unless such conversion,
alteration or improvement is carried out with the substantial assistance
of grants, loans or subsidies from any federal, state or local agency or
instrumentality.
(7) to any conversion of or alteration or improvement, commenced on or
after the effective date of this paragraph, to any property classified
under the zoning resolution as a non-profit institution with sleeping
accommodations, regardless of the status or use of the building after
the conversion, alteration or improvement unless such conversion,
alteration or improvement is carried out with the substantial assistance
of grants, loans or subsidies from any federal, state or local agency or
instrumentality.
j. Notwithstanding the provisions of the multiple dwelling law, or any
local law, ordinance, provisions of this code, rule or regulation, any
dwelling to which alterations and improvements are made pursuant to this
section and which did not require a certificate of occupancy on April
second, nineteen hundred forty-five, may be occupied lawfully after such
date upon the completion of such alterations and improvements without
such a certificate being obtained, provided, however, that such
alterations and improvements shall have been made in conformity with law
and the applicable provisions for fire protection required by articles
six and seven of the multiple dwelling law.
k. No owner of a dwelling to which the benefits of this section shall
be applied, nor any agent, employee, manager or officer of such owner
shall directly or indirectly deny to any person because of race, color,
creed, national origin, gender, sexual orientation, disability, marital
status, age, religion, alienage or citizenship status, or the use of,
participation in, or being eligible for a governmentally funded housing
assistance program, including, but not limited to, the section 8 housing
voucher program and the section 8 housing certificate program, 42 U.S.C.
1437 et seq., or the senior citizen rent increase exemption program,
pursuant to either chapter seven of title twenty-six of this code or
section 26-509 of such code, any of the dwelling accommodations in such
property or any of the privileges or services incident to occupancy
therein. The term "disability" as used in this subdivision shall have
the meaning set forth in section 8-102 of the code. Nothing in this
subdivision shall restrict such consideration in the development of
housing accommodations for the purpose of providing for the special
needs of a particular group.
l. Any person who shall knowingly and willfully make any false
statement as to any material matter in any application for the benefits
of this section shall be guilty of an offense punishable by a fine of
not more than five hundred dollars or imprisonment for not more than
ninety days, or both. The commissioner of the department of housing
preservation and development may reduce or revoke past and future
exemption or tax abatement authorized pursuant to this section if the
application for tax exemption or tax abatement contains a false
statement or false information as to a material matter or omits a
material matter.
m. Each agency or department to which functions are assigned by this
section may adopt and promulgate rules and regulations for the
effectuation of the purpose of this section.
n. The department of housing preservation and development may require
a filing fee in an amount as provided by the rules and regulations
promulgated by the department of housing preservation and development
pursuant to subdivision m of this section.
o. Any tax abatement granted for a period of nine years to a multiple
dwelling aided by a loan provided by the city of New York prior to
January first, nineteen hundred seventy-one, shall upon application
therefor be adjusted to extend for a period of up to twenty years,
provided that the total abatement before and after such adjustment shall
not exceed the total abatement to which such property was initially
entitled under this section.
p. This section is enacted pursuant to the provisions of section four
hundred eighty-nine of the real property tax law and subdivision two of
section four hundred five of the private housing finance law.
q. No application for the benefits of this section shall be accepted
by the department of finance if there are outstanding real estate taxes
or water and sewer charges or payments in lieu of taxes which were due
and owing as of the last day of the tax period preceding the date of
such filing with the department of finance, provided that an applicant
aided by article eight or article fifteen of the private housing finance
law shall have such application accepted by the department of finance if
there are no outstanding real estate taxes or water and sewer charges
due and owing as of the last day of the tax period preceding
commencement of construction.
r. In the event that any building or structure receiving the benefits
of this section shall become operated exclusively for commercial, hotel
or transient hotel use, the tax commission shall withdraw benefits
granted herein prospectively.
s. The benefits of this section shall not apply to alterations or
improvements to existing dwellings in existence on December
thirty-first, nineteen hundred seventy-five where (i) such alterations
or improvements were completed on or before December thirty-first,
nineteen hundred seventy-five, and (ii) no dwelling units thereof on
December thirty-first, nineteen hundred seventy-five had rentals which
were subject to control by the city rent agency pursuant to chapter four
of title twenty-six of the code. This subdivision shall not apply to
alterations or improvements to any building or structure which is
benefitted by mortgage insurance pursuant to section two hundred
thirteen of the national housing act for applications filed prior to
January first, nineteen hundred seventy-nine.
t. Notwithstanding any law to the contrary, the owner of any building
or structure eligible for any of the benefits of this section which is
converted to a class A multiple dwelling, completed, or substantially
rehabilitated on or after January one, nineteen hundred seventy-four,
shall register the initial rent for each dwelling unit in such building
or structure with the New York state division of housing and community
renewal. After such registration, the rents of such dwelling units shall
be fully subject to regulations under chapter four of title twenty-six
of the code so long as the benefits of this section are in effect or for
such longer period as may be provided by law.
u. Any tax exemption or tax abatement authorized pursuant to this
section may be revoked retroactively by the commissioner of department
of housing preservation and development or the department of finance of
the city of New York at any time during the authorized term of such tax
exemption or tax abatement if real estate taxes or water and sewer
charges due to the city of New York remain unpaid for one year after the
same are due and payable. In no event shall revocation be effective
prior to the date such taxes or charges were first due and payable.
v. Where alterations, improvements, or conversions include or benefit
that part of a building which is not occupied for dwelling purposes but
is occupied by stores or otherwise used for commercial purposes or
community facilities, the increase in assessed valuation and the cost of
the alteration shall be apportioned so that the benefits of this title
shall not be provided for alterations, improvements or conversions made
for other than dwelling purposes.
w. If any provision of this section or its application to any person
shall be held invalid, the remainder of this section and the
applicability of its provisions to other persons or circumstances shall
not be affected thereby.
x. Notwithstanding any provision of this section, no benefit pursuant
to paragraph five of subdivision b of this section shall be granted for
work commenced after January first, nineteen hundred eighty, unless the
applicant establishes that the department of housing preservation and
development and tenants of such class A multiple dwelling were given
notice of (i) the proposed work prior to commencement of such work, (ii)
the identity of the owner's representative, and (iii) the tenants'
rights under applicable law with respect to such work, provided that, in
the case of a loan program supervised by such department, notice to the
department shall be unnecessary, and further provided that the
department may itself provide the required notice to the tenants.
y. Applicants for benefits under the provisions of this section shall
file with the department of finance a form supplied by said department
which (i) states an intention to file for benefits under the provisions
of this section, (ii) describes the work for which tax benefits will be
claimed and (iii) estimates the cost of such work which will be eligible
for benefits. Such form shall be filed prior to the commencement of such
work. If the scope of such work or the estimated cost thereof changes
materially, applicant shall file a revised statement. 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 filing fee
otherwise payable pursuant to subdivision n of this section.
z. A former tenant or former subtenant of premises in a
non-residential building which is the subject of an application for an
alteration permit for conversion to a class A multiple dwelling, prior
to the application for any tax exemption or abatement benefits for such
building pursuant to this section, and as a condition to the grant
thereof, shall be entitled to a relocation award under the terms and
conditions set forth below:
(1) As used in this subdivision, the term "eligible tenant" shall mean
any former tenant or former subtenant who:
(i) leased and used the vacated premises to conduct a manufacturing,
warehousing, or wholesaling business for not less than two consecutive
years immediately prior to vacating;
(ii) vacated such premises on or after April first, nineteen hundred
eighty-one for any reason other than eviction for non-payment of rent;
(iii) vacated such premises (a) no earlier than twenty-four months
prior to the filing date of an application for such alteration permit
and (b) no later than the completion of the conversion as evidenced by
the issuance of a permanent certificate of occupancy for a class A
multiple dwelling;
(iv) either purchased or leased for a term of not less than eighteen
months other premises within the city of New York with a floor area not
less than one-third of the floor area of the vacated premises;
(v) relocated their business to such other premises within one year of
vacating the vacated premises; and
(vi) paid all commercial rent or occupancy tax for the vacated
premises. A subtenant shall be eligible to receive a relocation award
notwithstanding any lack of eligibility of its prime tenant;
(2) the relocation award shall not exceed the greater of (i) the
aggregate base rent which accrued and was paid by the eligible tenant
during the final twenty-four months of its occupancy of the vacated
premises or (ii) four dollars for each square foot that the eligible
tenant occupied in the vacated premises during the final twenty-four
months of its occupancy of the vacated premises. As used in this
subdivision, base rent shall be calculated in the same manner as base
rent is calculated for purposes of commercial rent or occupancy tax in
the city of New York. However, the aggregate award payable to a prime
tenant and/or any subtenants of such prime tenant shall not exceed the
amount which would have been payable to the prime tenant had the prime
tenant been eligible for an award based on the entire floor area it
leased from the owner; and if such limitation applies, the awards shall
be prorated based upon the total floor area used and occupied by each
eligible tenant;
(3) the relocation award shall become due and payable to an eligible
tenant at the time the eligible tenant (i) either purchases or leases
other premises in accordance with paragraph one of this subdivision, and
(ii) certifies eligibility to, and demands payment of, the award from
the owner of the vacated building. If the relocation award is not paid
within thirty days of such certification and demand, interest shall
accrue on the relocation award from the date of the certification and
demand at the rate of twenty-four percent per annum;
(4) at any time after such certification and demand and prior to the
date of the filing of an application for tax exemption or abatement for
the vacated building pursuant to this section, an eligible tenant who
has not received a relocation award shall have a right to file a notice
of claim. Such notice of claim shall be filed with the county clerk of
the county in which the vacated building is located and shall verify the
claimant's name, its compliance with eligibility requirements, the
address of the vacated premises, the floor area it occupied, the name of
the prime tenant if the claimant is a subtenant, and all the base rent
that accrued and was paid by the claimant during the final twenty-four
months of its occupancy;
(5) a notice of claim, filed in accordance with paragraph four of this
subdivision, may be discharged by the filing of an undertaking with the
clerk of the county in which the premises are located in an amount equal
to the amount claimed and in accordance with the procedures set forth in
subdivision four of section nineteen of the lien law, or by the payment
into court of such amount in accordance with the procedures set forth in
section fifty-five of such law;
(6) no tax exemption or abatement shall be granted pursuant to this
section unless the department of housing preservation and development
receives an affidavit from the applicant for benefits of this section
which verifies that:
(i) the applicant has caused to be published a notice in a newspaper
of general circulation within the city of New York, no later than sixty
days prior to filing of an application for tax exemption or abatement
pursuant to this section, which advises former tenants and subtenants of
their rights pursuant to this subdivision; and
(ii) no notice of claim has been filed or all claims have been
released by the claimants, or secured in accordance with the provisions
of paragraph five of this subdivision, or discharged as an improper
claim by court order;
(7) the affidavit required pursuant to the provisions of paragraph six
of this subdivision shall be considered part of the application for
benefits pursuant to this section;
(8) if an eligible tenant has duly filed a notice of claim pursuant to
paragraph four of this subdivision and did not receive a relocation
award as provided herein, it may commence an action against any
applicant who filed a false affidavit pursuant to paragraph six of this
subdivision or any security posted by such applicant pursuant to
paragraph five of this subdivision, within three years of such filing.
In any action to enforce a claim pursuant to this subdivision, if the
court finds that the claimant has wilfully exaggerated the amount of the
claim, the claimant may be held liable in damages for an amount not to
exceed the proper relocation award. An eligible tenant in whose favor a
judgment is entered shall be entitled to costs and reasonable legal fees
and disbursements provided that such judgment is in excess of the amount
which the applicant or owner offered to pay the eligible tenant;
(9) any lease or other rental agreement provision exempting, waiving,
releasing or discharging the obligation to pay a relocation award
pursuant to this subdivision shall be void as against public policy and
wholly unenforceable;
(10) the provisions of this subdivision shall not apply south of
fifty-ninth street in the county of New York if the zoning resolution of
the city of New York expressly provides for relocation loans and/or
grants in lieu of the benefits of this subdivision.
aa. Harassment. (1) The provisions of this subdivision apply to and
are additional requirements for claiming or receiving:
(a) any tax exemption under this section; or
(b) any tax abatement under this section where the certified
reasonable cost per dwelling unit of the conversion, alteration or
improvement (including the cost of any conversion, alteration or
improvement for which an abatement was approved within four years prior
to commencement of the conversion, alteration or improvement) exceeds
seven thousand five hundred dollars.
(2) The owner of the property shall file with the department of
housing preservation and development, not less than thirty days before
the commencement of the conversion, alteration or improvement
(hereinafter referred to as the "cut-off date"), an affidavit, or, where
any information referred to in paragraph one of this subdivision changes
prior to applying for or claiming any benefit under this section, an
amending affidavit, setting forth the following information:
(a) every owner of record and owner of a substantial interest in the
property or entity owning the property or sponsoring the conversion,
alteration or improvement;
(b) a statement that none of such persons had, within the five years
prior to the cut-off date, been found to have harassed or unlawfully
evicted tenants by judgment or determination of a court or agency
(including a non-governmental agency having appropriate legal
jurisdiction) under the penal law, any state or local law regulating
rents or any state or local law relating to harassment of tenants or
unlawful eviction; and
(c) any change in the information required to be set forth.
(3) No conversion, alteration or improvement subject to this
subdivision shall be eligible for tax exemption or tax abatement under
this section where:
(a) any affidavit required under this subdivision has not been filed;
or
(b) any such affidavit contains a willful misrepresentation or
omission of any material fact; or
(c) any person referred to in subparagraph (a) of paragraph two of
this subdivision has been found to have harassed or unlawfully evicted
tenants as described in that paragraph, until and unless the finding is
reversed on appeal, provided that any such finding after the cut-off
date shall not apply to or affect any tax abatement or exemption for the
conversion, alteration or improvement covered by the affidavit.
(4) The department of housing preservation and development and the
department of finance shall maintain a list of affidavits as described
in paragraph two of this subdivision. Each agency shall review that list
with respect to each application or claim for benefits subject to this
subdivision.
(5) "Substantial interest" as used in subparagraph (a) of paragraph
two of this subdivision shall mean ownership of an interest of ten per
centum or more in the property or entity owning the property or
sponsoring the conversion, alteration or improvement.
(6) Where the conversion, alteration or improvement is commenced
before August first, nineteen hundred eighty-three, the cut-off date
shall be as set forth in this subdivision, but no affidavit shall be
required to be filed until thirty days after the effective date of this
subdivision.
bb. Notwithstanding any contrary provision of the private housing
finance law, the benefits of this section shall apply to any limited
profit housing company as provided in this section. Such multiple
dwelling, building or structure shall be eligible for benefits only to
the extent to which such alterations or improvements are not financed
with grants, loans or subsidies from any federal, state, or local agency
or instrumentality, and where at least one building-wide improvement or
alteration is part of the application for benefits. The abatement of
taxes on such property, including the land, shall not be an amount
greater than ninety per centum of the certified reasonable cost of such
alterations or improvements, as determined under regulations of the
department of housing preservation and development, nor greater than
eight and one-third percent of such certified reasonable cost in any
twelve month period, nor be effective for more than twenty years. The
annual abatement of taxes in any twelve month period shall in no event
exceed fifty percent of the amount of taxes payable in such twelve month
period pursuant to the applicable exemption granted pursuant to article
two of the private housing fiance law or other applicable laws or fifty
percent of payments required to be made in lieu of taxes in such twelve
month period. Notwithstanding the foregoing, the annual abatement of
taxes for alterations or improvements commenced prior to June first,
nineteen hundred eighty-six may not be applied to reduce the amount of
taxes payable or the amount of payments required to be made in lieu of
taxes in any twelve month period to an amount less than the minimum
amount of taxes required to be paid pursuant to section thirty-three of
the private housing finance law.
cc. The commissioner of the department of housing preservation and
development and the commissioner of the department of finance shall
prepare an annual report which shall be submitted to the Mayor and the
council on or before the first day of July next succeeding the year to
which the report pertains, regarding the exemptions and abatements
granted pursuant to this section and shall include, but not be limited
to the following information: (i) the amount of real property tax that
would have been paid in the aggregate by the owners of real property
granted an exemption or abatement if the property were fully taxable and
the amount of tax actually paid in the aggregate by such owners, (ii)
the geographic distribution of exemptions and abatements granted
pursuant to this section, and (iii) a distribution by type of eligible
categories as delineated in paragraphs one through nine of subdivision b
of this section.
dd. Partial waiver of rent adjustments attributable to major capital
improvements. (1) The provisions of this subdivision apply to and are
additional requirements for claiming or receiving any tax abatement
under this section, except as provided in paragraphs three and four of
this subdivision.
(2) The owner of the property shall file with the department of
housing preservation and development, on the date any application for
benefits is made, a declaration stating that in consideration of any tax
abatement benefits which may be received pursuant to such application
for alterations or improvements constituting a major capital
improvement, such owner agrees to waive the collection of a portion of
the total annual amount of any rent adjustment attributable to such
major capital improvement which may be granted by the New York state
division of housing and community renewal pursuant to the rent
stabilization code equal to one-half of the total annual amount of the
tax abatement benefits which the property receives pursuant to such
application with respect to such alterations or improvements. Such
waiver shall commence on the date of the first collection of such rent
adjustment, provided that, in the event that such tax abatement benefits
were received prior to such first collection, the amount waived shall be
increased to account for such tax abatement benefits so received.
Following the expiration of a tax abatement for alterations or
improvements constituting a major capital improvement for which a rent
adjustment has been granted by such division, the owner may collect the
full amount of annual rent permitted pursuant to such rent adjustment. A
copy of such declaration shall be filed simultaneously with the New York
state division of housing and community renewal. Such declaration shall
be binding upon such owner, and his or her successors and assigns.
(3) The provisions of this subdivision shall not apply to substantial
rehabilitation of buildings vacant when alterations or improvements are
commenced or to buildings rehabilitated with the substantial assistance
of city, state or federal subsidies.
(4) The provisions of this subdivision shall apply only to alterations
and improvements commenced after its effective date.