BILL NO A02472
SAME AS SAME AS S02893
SPONSOR Lopez V
COSPNSR Bing, Cusick, Miller M, Lancman, Weprin, Camara, Ortiz, Meng, Castro,
Colton, Kellner, Stevenson, Jeffries, Hevesi
MLTSPNSR Abbate, Braunstein, Cook, Heastie, Markey, Nolan, Perry, Rivera J,
Rivera P, Simotas, Wright
Amd S421-a, add S421-l, RPT L; amd S11-245, NYC Ad Cd; add S1806, NYC Chart
Alters tax exemption programs for the development of new and affordable
housing; defines "initial construction period" and "extended construction
period"; makes related changes.
S T A T E O F N E W Y O R K
________________________________________________________________________
2472
2011-2012 Regular Sessions
I N A S S E M B L Y
January 18, 2011
___________
Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
tee on Housing
AN ACT to amend the real property tax law, the administrative code of
the city of New York and the New York city charter, in relation to
changing tax exemption programs for the development of new and afford-
able housing
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 1 of section 421-a of the real property tax law
2 is amended by adding two new paragraphs e and f to read as follows:
3 E. "INITIAL CONSTRUCTION PERIOD." THE PERIOD OF TIME NEEDED FOR THE
4 CONSTRUCTION OF A NEW MULTIPLE DWELLING OR THE PERIOD OF THREE YEARS
5 IMMEDIATELY FOLLOWING COMMENCEMENT OF CONSTRUCTION, WHICHEVER EXPIRES
6 SOONER, PROVIDED THAT CONSTRUCTION MUST BE COMPLETED UPON THE EXPIRATION
7 OF THIS PERIOD IN ORDER FOR SUCH MULTIPLE DWELLING TO REMAIN ELIGIBLE
8 FOR THE EXEMPTION PROVIDED IN THIS SECTION.
9 F. "EXTENDED CONSTRUCTION PERIOD." THE PERIOD OF TIME IMMEDIATELY
10 FOLLOWING THE INITIAL CONSTRUCTION PERIOD NEEDED TO COMPLETE THE
11 CONSTRUCTION OF A NEW MULTIPLE DWELLING OR THE PERIOD OF THREE YEARS,
12 WHICHEVER EXPIRES SOONER.
13 S 2. Paragraph (a) of subdivision 2 of section 421-a of the real prop-
14 erty tax law, as amended by chapter 288 of the laws of 1985, clause (A)
15 of subparagraph (iii) as amended by chapter 702 of the laws of 1992,
16 clause (E) of subparagraph (iii) as added and the opening paragraph of
17 item (A) of subparagraph (iv) as amended by chapter 618 of the laws of
18 2007, subparagraph (iv) as added by chapter 832 of the laws of 1992 and
19 item (A) of subparagraph (iv) as amended by chapter 432 of the laws of
20 1998, is amended to read as follows:
21 (a) (i) (A) Within a city having a population of one million or more,
22 new multiple dwellings, except hotels, shall be exempt from taxation for
23 local purposes, other than assessments for local improvements, for the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07026-04-1
A. 2472 2
1 tax year or years immediately following taxable status dates occurring
2 subsequent to the commencement and prior to the completion of THE
3 INITIAL construction PERIOD, but not to exceed three such tax years, and
4 shall continue to be exempt from such taxation in tax years immediately
5 following the taxable status date first occurring after the expiration
6 of the exemption herein conferred during THE INITIAL construction [so
7 long as used at the completion of construction for dwelling purposes]
8 PERIOD for a period not to exceed ten years in the aggregate after the
9 taxable status date immediately following the completion [thereof] OF
10 THE INITIAL CONSTRUCTION PERIOD AND DURING THE EXTENDED CONSTRUCTION
11 PERIOD IF SUCH PERIOD IS NEEDED, as follows:
12 [(A)] A. except as otherwise provided herein there shall be full
13 exemption from taxation during the [period of construction or the period
14 of three years immediately following commencement of construction,
15 whichever expires sooner] INITIAL CONSTRUCTION PERIOD, and for two years
16 following such period;
17 [(B)] B. followed by two years of exemption from eighty [per cent]
18 PERCENT of such taxation;
19 [(C)] C. followed by two years of exemption from sixty [per cent]
20 PERCENT of such taxation;
21 [(D)] D. followed by two years of exemption from forty [per cent]
22 PERCENT of such taxation;
23 [(E)] E. followed by two years of exemption from twenty [per cent]
24 PERCENT of such taxation[;].
25 (B) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
26 CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
27 FOR DWELLING PURPOSES.
28 The following table shall illustrate the computation of the tax
29 exemption:
30 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
31 Exemption
32 During INITIAL
33 Construction PERIOD
34 (maximum three years) 100%
35 Following completion of [work] THE INITIAL CONSTRUCTION
36 PERIOD
37 Year:
38 1 100%
39 2 100
40 3 80
41 4 80
42 5 60
43 6 60
44 7 40
45 8 40
46 9 20
47 10 20
48 (ii) (A) Within a city having a population of one million or more the
49 local housing agency may adopt rules and regulations providing that
50 except in areas excluded by local law new multiple dwellings, except
51 hotels, shall be exempt from taxation for local purposes, other than
52 assessments for local improvements, for the tax year or years immediate-
A. 2472 3
1 ly following taxable status dates occurring subsequent to the commence-
2 ment and prior to the completion of THE INITIAL construction PERIOD, but
3 not to exceed three such tax years, and shall continue to be exempt from
4 such taxation in tax years immediately following the taxable status date
5 first occurring after the expiration of the exemption herein conferred
6 during [such] THE INITIAL construction [so long as used at the
7 completion of construction for dwelling purposes] PERIOD, AND DURING THE
8 EXTENDED CONSTRUCTION PERIOD IF SUCH PERIOD IS NEEDED, for a period not
9 to exceed fifteen years in the aggregate, as follows:
10 a. except as otherwise provided herein there shall be full exemption
11 from taxation during the [period of construction or the period of three
12 years immediately following commencement of construction, whichever
13 expires sooner] INITIAL CONSTRUCTION PERIOD, and for eleven years
14 following such period;
15 b. followed by one year of exemption from eighty percent of such taxa-
16 tion;
17 c. followed by one year of exemption from sixty percent of such taxa-
18 tion;
19 d. followed by one year of exemption from forty percent of such taxa-
20 tion;
21 e. followed by one year of exemption from twenty percent of such taxa-
22 tion.
23 (B) The benefits of this subparagraph shall not be available in areas
24 made ineligible for the benefits of this section by a local law enacted
25 pursuant to paragraph (i) of THIS subdivision [two of this section],
26 notwithstanding any exceptions to ineligibility contained in such local
27 law for certain types of projects in such areas.
28 (C) Unless excluded by local law, in the city of New York the benefits
29 of this subparagraph shall be available in the borough of Manhattan for
30 tax lots now existing or hereafter created south of or adjacent to
31 either side of one hundred tenth street only if:
32 a. the construction is carried out with the substantial assistance of
33 grants, loans or subsidies from any federal, state or local agency or
34 instrumentality, or
35 b. the local housing agency has imposed a requirement or has certified
36 that twenty percent of the units be affordable to families of low and
37 moderate income.
38 (D) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
39 CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
40 FOR DWELLING PURPOSES.
41 The following table shall illustrate the computation of the exemption:
42 CONSTRUCTION OF CERTAIN
43 MULTIPLE DWELLINGS
44 Exemption
45 During INITIAL Construction PERIOD
46 (maximum three years) 100%
47 Following completion of [work] THE INITIAL CONSTRUCTION
48 PERIOD
49 Year:
50 1 through 11 100%
51 12 80
52 13 60
53 14 40
54 15 20
A. 2472 4
1 (iii) (A) Within a city having a population of one million or more the
2 local housing agency may adopt rules and regulations providing that new
3 multiple dwellings, except hotels, shall be exempt from taxation for
4 local purposes, other than assessments for local improvements, for the
5 tax year or years immediately following taxable status dates occurring
6 subsequent to the commencement and prior to the completion of THE
7 INITIAL construction PERIOD, but not to exceed three such tax years, and
8 shall continue to be exempt from such taxation in tax years immediately
9 following the taxable status date first occurring after the expiration
10 of the exemption herein conferred during [such] THE INITIAL construction
11 [so long as used at the completion of construction for dwelling
12 purposes] PERIOD, AND DURING THE EXTENDED CONSTRUCTION PERIOD IF SUCH
13 PERIOD IS NEEDED, for a period not to exceed twenty-five years in the
14 aggregate, provided that the area in which the project is situated is a
15 neighborhood preservation program area as determined by the local hous-
16 ing agency as of June first, nineteen hundred eighty-five, or is a
17 neighborhood preservation area as determined by the New York city plan-
18 ning commission as of June first, nineteen hundred eighty-five, or is an
19 area that was eligible for mortgage insurance provided by the rehabili-
20 tation mortgage insurance corporation as of May first, nineteen hundred
21 ninety-two or is an area receiving funding for a neighborhood preserva-
22 tion project pursuant to the neighborhood reinvestment corporation act
23 (42 U.S.C. SS180 et seq.) as of June first, nineteen hundred eighty-
24 five, as follows:
25 a. except as otherwise provided herein there shall be full exemption
26 from taxation during the [period of construction or the period of three
27 years immediately following commencement of construction, whichever
28 expires sooner] INITIAL CONSTRUCTION PERIOD, and for twenty-one years
29 following such period;
30 b. followed by one year of exemption from eighty percent of such taxa-
31 tion;
32 c. followed by one year of exemption from sixty percent of such taxa-
33 tion;
34 d. followed by one year of exemption from forty percent of such taxa-
35 tion;
36 e. followed by one year of exemption from twenty percent of such taxa-
37 tion.
38 (B) The benefits of this subparagraph shall not be available in areas
39 made ineligible for the benefits of this section by a local law enacted
40 pursuant to paragraph (i) of THIS subdivision [two of this section],
41 notwithstanding any exceptions to ineligibility contained in such local
42 law for certain types of projects.
43 (C) Notwithstanding the provisions of item (A) or (D) of this subpara-
44 graph, in the city of New York the benefits of this subparagraph shall
45 not be available in the borough of Manhattan for tax lots now existing
46 or hereafter created south of or adjacent to either side of one hundred
47 tenth street.
48 (D) In addition to being available in the areas described in item (A)
49 of this subparagraph, the benefits made available pursuant to this
50 subparagraph shall be available where:
51 a. the construction is carried out with the substantial assistance of
52 grants, loans or subsidies from any federal, state or local agency or
53 instrumentality, or
54 b. the local housing agency has imposed a requirement or has certified
55 that twenty percent of the units be affordable to families of low and
56 moderate income.
A. 2472 5
1 (E) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
2 CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
3 FOR DWELLING PURPOSES.
4 The following table shall illustrate the computation of the exemption:
5 CONSTRUCTION OF CERTAIN
6 MULTIPLE DWELLINGS
7 Exemption
8 During INITIAL 100%
9 Construction PERIOD (maximum
10 three years)
11 Following completion of [work]
12 THE INITIAL CONSTRUCTION PERIOD
13 Year:
14 1 through 21 100%
15 22 80
16 23 60
17 24 40
18 25 20
19 [(E)] (F) A new multiple dwelling that is situated in (1) a neighbor-
20 hood preservation program area as determined by the department of hous-
21 ing preservation and development as of June first, nineteen hundred
22 eighty-five, (2) a neighborhood preservation area as determined by the
23 New York city planning commission as of June first, nineteen hundred
24 eighty-five, (3) an area that was eligible for mortgage insurance
25 provided by the rehabilitation mortgage insurance corporation as of May
26 first, nineteen hundred ninety-two, or (4) an area receiving funding for
27 a neighborhood preservation project pursuant to the neighborhood rein-
28 vestment corporation act (42 U.S.C. SS 8101 et seq.) as of June first,
29 nineteen hundred eighty-five, shall not be eligible for the benefits
30 available pursuant to this subparagraph unless it complies with the
31 provisions of subdivision seven of this section.
32 (iv) (A) Unless excluded by local law, in the city of New York, the
33 benefits of this subparagraph shall be available in the borough of
34 Manhattan for new multiple dwellings on tax lots now existing or here-
35 after created south of or adjacent to either side of one hundred tenth
36 street which commence construction after July first, nineteen hundred
37 ninety-two and before December twenty-eighth, two thousand [ten] THIR-
38 TEEN only if:
39 a. the construction is carried out with the substantial assistance of
40 grants, loans or subsidies from any federal, state or local agency or
41 instrumentality, or
42 b. the local housing agency has imposed a requirement or has certified
43 that twenty percent of the units are affordable to families of low and
44 moderate income.
45 (B) Such new multiple dwellings, except hotels, shall be exempt from
46 taxation for local purposes, other than assessments for local improve-
47 ments for the tax year or years immediately following taxable status
48 dates occurring subsequent to the commencement and prior to the
49 completion of THE INITIAL construction PERIOD, but not to exceed three
50 such tax years, and shall continue to be exempt from such taxation in
51 tax years immediately following the taxable status dates first occurring
52 after the expiration of the exemption herein conferred during [such] THE
53 INITIAL construction [so long as used at the completion of construction
A. 2472 6
1 for dwelling purposes] PERIOD, AND DURING THE EXTENDED CONSTRUCTION
2 PERIOD IF SUCH PERIOD IS NEEDED, for a period not to exceed twenty years
3 in the aggregate, as follows:
4 a. except as otherwise provided herein, there shall be full exemption
5 from taxation during the [period of construction or the period of three
6 years immediately following commencement of construction, whichever
7 expires sooner] INITIAL CONSTRUCTION PERIOD, and for twelve years
8 following such period;
9 b. followed by two years of exemption from eighty percent of such
10 taxation;
11 c. followed by two years of exemption from sixty percent of such taxa-
12 tion;
13 d. followed by two years of exemption from forty percent of such taxa-
14 tion;
15 e. followed by two years of exemption from twenty percent of such
16 taxation.
17 (C) UPON THE COMPLETION OF THE INITIAL CONSTRUCTION PERIOD OR EXTENDED
18 CONSTRUCTION PERIOD, IF NEEDED, THE NEW MULTIPLE DWELLING MUST BE USED
19 FOR DWELLING PURPOSES.
20 The following table shall illustrate the computation of the exemption:
21 CONSTRUCTION OF CERTAIN
22 MULTIPLE DWELLINGS
23 During [construction] INITIAL CONSTRUCTION PERIOD
24 (maximum three years) Exemption 100%
25 Following completion of [work year:] THE INITIAL CONSTRUCTION
26 PERIOD
27 YEAR:
28 1 through 12 100%
29 13-14 80%
30 15-16 60%
31 17-18 40%
32 19-20 20%
33 S 3. Subparagraph (ii) of paragraph (c) of subdivision 2 of section
34 421-a of the real property tax law, as amended by chapter 618 of the
35 laws of 2007, is amended to read as follows:
36 (ii) construction is commenced after January first, nineteen hundred
37 seventy-five and before December twenty-eighth, two thousand [ten] THIR-
38 TEEN provided, however, that such commencement period shall not apply to
39 multiple dwellings eligible for benefits under subparagraph (iv) of
40 paragraph (a) of this subdivision;
41 S 4. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
42 erty tax law, as amended by chapter 995 of the laws of 1981, is amended
43 to read as follows:
44 (g) [For] NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN ANY
45 OTHER STATE OR LOCAL LAW, FOR purposes of this section, construction
46 shall be deemed "commenced" [when excavation or alteration has begun in
47 good faith on the basis of approved construction plans] UPON THE DATE
48 THAT, PURSUANT TO ANY PERMIT APPROVED BY A DEPARTMENT OF BUILDINGS: (I)
49 A NEW METAL OR CONCRETE STRUCTURE THAT SHALL PERFORM A LOAD BEARING
50 FUNCTION IS INSTALLED AS PART OF A FOUNDATION; (II) AT LEAST ONE FULLY
51 DRIVEN PILE OR CAISSION IS INSTALLED; OR (III) THE ACTUAL CONSTRUCTION,
52 ALTERATION, OR IMPROVEMENT OF A PRE-EXISTING BUILDING OR STRUCTURE
53 BEGINS IN A PROJECT THAT INCLUDES NEW RESIDENTIAL CONSTRUCTION AND THE
A. 2472 7
1 CONCURRENT CONVERSION, ALTERATION OR IMPROVEMENT OF A PRE-EXISTING
2 BUILDING OR STRUCTURE. PROVIDED, HOWEVER, THAT WITH RESPECT TO SUBPARA-
3 GRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, THE CONSTRUCTION OF SUCH
4 MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
5 S 5. The opening paragraph and paragraph (iv) of subdivision 3 of
6 section 421-a of the real property tax law, the opening paragraph as
7 amended by chapter 655 of the laws of 1978 and paragraph (iv) as amended
8 by chapter 703 of the laws of 1976 and such section as renumbered by
9 chapter 110 of the laws of 1977, are amended to read as follows:
10 [Application forms for exemption under this section shall be filed
11 with the assessors between February first and March fifteenth and, based
12 on the certification of the local housing agency as herein provided, the
13 assessors shall certify to the collecting officer the amount of taxes to
14 be abated.] If there be in a city of one million population or more a
15 department of housing preservation and development, the term "housing
16 agency" shall mean only such department of housing preservation and
17 development. [No such application shall be accepted by the assessors
18 unless accompanied by a certificate of the local housing agency certify-
19 ing the applicant's eligibility pursuant to subdivisions two and four of
20 this section.] No [such] certification of eligibility FOR BENEFITS
21 PURSUANT TO THIS SECTION shall be issued by the local housing agency
22 until such agency determines the initial adjusted monthly rent to be
23 paid by tenants residing in rental dwelling units contained within the
24 multiple dwelling and the comparative adjusted monthly rent that would
25 have to be paid by such tenants if no tax exemption were applicable as
26 provided by this section. The initial adjusted monthly rent will be
27 certified by the local housing agency as the first rent for the subject
28 dwelling units. A copy of such certification with respect to such units
29 shall be attached by the applicant to the first effective lease or occu-
30 pancy agreement. The initial adjusted monthly rent shall reflect the
31 full tax exemption benefits as approved by the agency.
32 (iv) The adjusted monthly rent per room per month shall be multiplied
33 by the room count of each rental dwelling unit to provide the initial
34 adjusted monthly rent for such dwelling unit. The agency may allow
35 adjustments in the initial adjusted monthly rent for any particular
36 dwelling units provided that the total of the initial adjusted monthly
37 rents for all of the rental dwelling units in a multiple dwelling shall
38 not exceed the total expenses of such multiple dwelling.
39 The agency shall determine the estimated comparative adjusted monthly
40 rent that would have to be paid if no tax exemption were applicable as
41 provided by this section by adding to the adjusted monthly rent for each
42 dwelling unit as hereinabove computed an amount equal to (a) the differ-
43 ence between the projected real property taxes which would be levied on
44 the multiple dwelling and the land on which it is situated at the time
45 OF estimated initial occupancy if no tax abatement were applicable as
46 provided by this section and the projected real property taxes hereina-
47 bove utilized in connection with the computation of total expenses; (b)
48 divided by the room count of the building as per this section; and (c)
49 multiplied by the applicants approved room count of each such dwelling
50 unit.
51 The local housing agency may promulgate rules and regulations to carry
52 out the provisions of this section, not inconsistent with the provisions
53 hereof, [and may require a reasonable filing fee in an amount provided
54 by such rules and regulations] INCLUDING, BUT NOT LIMITED TO, RULES AND
55 REGULATIONS RELATING TO THE FILING FEE AUTHORIZED PURSUANT TO PARAGRAPH
56 B OF SUBDIVISION FOUR OF THIS SECTION.
A. 2472 8
1 S 6. Paragraph b of subdivision 4 of section 421-a of the real proper-
2 ty tax law, as added by chapter 744 of the laws of 2004, is amended to
3 read as follows:
4 b. The local housing agency [may] SHALL require a filing fee not to
5 exceed the greater of (i) four-tenths of one percent of the total
6 project cost, or (ii) if the building will be owned as a cooperative or
7 condominium, four-tenths of one percent of the total project cost or
8 four-tenths of one percent of the total project sell-out price stated in
9 the last amendment to the offering plan accepted for filing by the
10 attorney general of the state, at the option of the applicant. Such
11 total project cost or total project sell-out price shall be determined
12 pursuant to rules promulgated by the local housing agency. Notwithstand-
13 ing the foregoing, the local housing agency may promulgate rules impos-
14 ing an additional fee if an application, or any part thereof, or
15 submission in connection therewith, is defective and such defect delays
16 the processing of such application or causes the local housing agency to
17 expend additional resources in the processing of such application.
18 S 7. Subparagraph (i) of paragraph (a) of subdivision 6 of section
19 421-a of the real property tax law, as added by chapter 110 of the laws
20 of 2005, is amended to read as follows:
21 (i) "Covered project." (A) A new building located within the Green-
22 point - Williamsburg waterfront exclusion area, (B) two or more build-
23 ings which are part of one contiguous development entirely located with-
24 in the Greenpoint - Williamsburg waterfront exclusion area, (C) two or
25 more buildings which are located within the Greenpoint - Williamsburg
26 waterfront exclusion area and are part of a single development parcel
27 specifically identified in section [62-831] 62-931 of the local zoning
28 resolution, or (D) where so authorized in writing by the local housing
29 agency, one or more buildings located within the Greenpoint - Williams-
30 burg waterfront exclusion area and one or more buildings located outside
31 the Greenpoint - Williamsburg waterfront exclusion area but within
32 Community District Number One in the borough of Brooklyn. The cumulative
33 number of affordable units located outside the Greenpoint - Williamsburg
34 waterfront exclusion area in all covered projects described in clause
35 (D) of this subparagraph shall not exceed two hundred. A building
36 located outside the Greenpoint - Williamsburg waterfront exclusion area
37 which is part of a covered project described in clause (D) of this
38 subparagraph shall not contain any affordable units with respect to
39 which an application pending before a governmental entity on [the effec-
40 tive date of this subdivision] JUNE TWENTY-FIRST, TWO THOUSAND FIVE or a
41 written agreement in effect on [the effective date of this subdivision]
42 JUNE TWENTY-FIRST, TWO THOUSAND FIVE provided for the development of
43 such affordable units.
44 S 8. Subdivision (c) of section 11-245 of the administrative code of
45 the city of New York, as amended by local law number 42 of the city of
46 New York for the year 2003, is amended to read as follows:
47 (c) No benefits under section four hundred twenty-one-a of the real
48 property tax law shall be conferred for any construction commenced on or
49 after November twenty-ninth, nineteen hundred eighty-five of any multi-
50 ple dwelling, or portion thereof, which is located within any district
51 in the county of New York where a maximum base floor area ratio, as that
52 term is defined in the zoning resolution, of fifteen or greater was
53 permitted as of right by provisions of such resolution in effect on
54 April fourteenth, nineteen hundred eighty-two; provided, however, that
55 this limitation on benefits shall not apply to any such construction
56 commenced on or after October first, nineteen hundred ninety-three and
A. 2472 9
1 before December [thirty-first] TWENTY-EIGHTH, two thousand [seven] THIR-
2 TEEN.
3 S 9. Subdivision 8 of section 421-a of the real property tax law, as
4 added by chapter 618 of the laws of 2007, subparagraph (i) of paragraph
5 (a) and paragraph (c) as amended by chapter 15 of the laws of 2008 and
6 paragraphs (d) and (e) as amended by chapter 619 of the laws of 2007, is
7 amended to read as follows:
8 8. (a) As used in this subdivision, the following terms shall have the
9 following meanings:
10 (i) "Building service employee" means any person who is regularly
11 employed at a building who performs work in connection with the care or
12 maintenance of such building. "Building service employee" includes, but
13 is not limited to superintendent, watchman, guard, doorman, building
14 cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator
15 operator and starter, and window cleaner, but shall not include persons
16 regularly scheduled to work fewer than eight hours per week in the
17 building.
18 (ii) "CONSTRUCTION EMPLOYEE" MEANS A LABORER, WORKER OR MECHANIC IN
19 THE EMPLOY OF THE CONTRACTOR, SUBCONTRACTOR OR OTHER PERSON DOING OR
20 CONTRACTING TO DO THE WHOLE OR A PORTION OF THE CONSTRUCTION OF A NEW
21 MULTIPLE DWELLING.
22 (III) "Prevailing wage" means the [wage] RATE OF WAGES AND SUPPLEMENTS
23 determined by the fiscal officer to be prevailing for the various class-
24 es of building service employees in the locality pursuant to section two
25 hundred thirty of the labor law, OR THE RATE OF WAGES AND SUPPLEMENTS
26 DETERMINED BY THE FISCAL OFFICER TO BE PREVAILING FOR THE VARIOUS CLASS-
27 ES OF CONSTRUCTION EMPLOYEES IN THE LOCALITY PURSUANT TO SECTION TWO
28 HUNDRED TWENTY OF THE LABOR LAW.
29 (b) No benefits under this section shall be conferred for any
30 construction commenced on or after December twenty-eighth, two thousand
31 seven for any tax lots now existing or hereafter created except where
32 the applicant agrees that all building service employees AND
33 CONSTRUCTION EMPLOYEES employed at the building, whether employed
34 directly by the applicant or its successors, or through a property
35 management company [or], a contractor OR A SUBCONTRACTOR, shall receive
36 the applicable prevailing wage for the duration of the building's tax
37 exemption. NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW, OR JUDI-
38 CIAL DECISION TO THE CONTRARY, FOR THE PURPOSES OF THIS SECTION SUCH
39 CONSTRUCTION WHICH MAY INVOLVE THE EMPLOYMENT OF LABORERS, WORKERS OR
40 MECHANICS, EXCEPT AS PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION,
41 SHALL BE DEEMED PUBLIC WORK FOR THE PURPOSES OF ARTICLE EIGHT OF THE
42 LABOR LAW AND ALL CONTRACTS AND SUBCONTRACTS WHICH MAY INVOLVE THE
43 EMPLOYMENT OF LABORERS, WORKERS OR MECHANICS SHALL BE ENFORCEABLE UNDER
44 ARTICLE EIGHT OF THE LABOR LAW.
45 (c) The limitations contained in paragraph (b) of this subdivision FOR
46 BUILDING SERVICE EMPLOYEES shall not be applicable to:
47 (i) projects containing less than fifty dwelling units; or
48 (ii) buildings where the local housing agency certifies that at
49 initial occupancy at least fifty percent of the dwelling units are
50 affordable to individuals or families with a gross household income at
51 or below one hundred twenty-five percent of the area median income and
52 that any such units which are located in rental buildings will be
53 subject to restrictions to insure that they will remain affordable for
54 the entire period during which they receive benefits under this section.
55 (d) THE LIMITATIONS CONTAINED IN PARAGRAPH (B) OF THIS SUBDIVISION FOR
56 CONSTRUCTION EMPLOYEES SHALL NOT BE APPLICABLE TO:
A. 2472 10
1 (I) PROJECTS CONTAINING LESS THAN EIGHTY DWELLING UNITS; OR
2 (II) BUILDINGS WHERE THE LOCAL HOUSING AGENCY CERTIFIES THAT AT
3 INITIAL OCCUPANCY AT LEAST FIFTY PERCENT OF THE DWELLING UNITS ARE
4 AFFORDABLE TO INDIVIDUALS OR FAMILIES WITH A GROSS HOUSEHOLD INCOME AT
5 OR BELOW ONE HUNDRED TWENTY-FIVE PERCENT OF THE AREA MEDIAN INCOME AND
6 THAT ANY SUCH UNITS WHICH ARE LOCATED IN RENTAL BUILDINGS WILL BE
7 SUBJECT TO RESTRICTIONS TO INSURE THAT THEY WILL REMAIN AFFORDABLE FOR
8 THE ENTIRE PERIOD DURING WHICH THEY RECEIVE BENEFITS UNDER THIS SECTION.
9 (E) The local housing agency shall prescribe appropriate sanctions for
10 failure to comply with the provisions of this subdivision.
11 [(e)] (F) Solely for purposes of paragraph (b) of this subdivision,
12 construction shall be deemed to have commenced [when excavation or
13 alteration has begun in good faith on the basis of approved construction
14 plans] UPON THE DATE THAT, PURSUANT TO ANY PERMIT APPROVED BY A DEPART-
15 MENT OF BUILDINGS, (I) A NEW METAL OR CONCRETE STRUCTURE THAT SHALL
16 PERFORM A LOAD BEARING FUNCTION IS INSTALLED AS PART OF A FOUNDATION,
17 (II) AT LEAST ONE FULLY DRIVEN PILE OR CAISSION IS INSTALLED, OR (III)
18 THE ACTUAL CONSTRUCTION, ALTERATION, OR IMPROVEMENT OF A PRE-EXISTING
19 BUILDING OR STRUCTURE BEGINS IN A PROJECT THAT INCLUDES NEW RESIDENTIAL
20 CONSTRUCTION AND THE CONCURRENT CONVERSION, ALTERATION OR IMPROVEMENT OF
21 A PRE-EXISTING BUILDING OR STRUCTURE. PROVIDED, HOWEVER, THAT WITH
22 RESPECT TO SUBPARAGRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, THE
23 CONSTRUCTION OF SUCH MULTIPLE DWELLING IS COMPLETED WITHOUT UNDUE DELAY.
24 [(f)] (G) The limitations on eligibility for benefits contained in
25 this subdivision shall be in addition to those contained in any other
26 law or regulation.
27 S 10. The New York city charter is amended by adding a new section
28 1806 to read as follows:
29 S 1806. ADDITIONAL FLOOR AREA. ANY PROGRAM THAT ALLOWS FOR ADDITIONAL
30 FLOOR AREA IN EXCHANGE FOR THE CREATION OF AFFORDABLE HOUSING SHALL
31 REQUIRE THAT THIRTY PERCENT OF ANY ADDITIONAL FLOOR AREA GENERATED BY
32 THE PROGRAM BE USED TO PROVIDE AFFORDABLE HOUSING.
33 S 11. The real property tax law is amended by adding a new section
34 421-l to read as follows:
35 S 421-L. EXEMPTION OF CERTAIN PRIVATE HOMES FROM LOCAL TAXATION. 1.
36 FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
37 ING MEANINGS:
38 (A) "COMMENCE CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR DEPARTMENT
39 OF THE CITY HAVING JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION OF
40 A PRIVATE HOME AND SUCH WORK HAS BEGUN IN GOOD FAITH IN ACCORDANCE WITH
41 SUCH PERMIT.
42 (B) "COMPLETE CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR DEPARTMENT
43 OF THE CITY HAVING JURISDICTION HAS ISSUED A TEMPORARY OR PERMANENT
44 CERTIFICATE OF OCCUPANCY FOR ALL RESIDENTIAL AREAS OF THE PRIVATE HOME.
45 (C) "ELIGIBLE PROJECT" SHALL MEAN A NEWLY CONSTRUCTED PRIVATE HOME,
46 INCLUDING BOTH LAND AND IMPROVEMENTS, TO BE OCCUPIED AS A RESIDENCE FOR
47 THE FIRST TIME, WHICH COMMENCES CONSTRUCTION ON OR AFTER JULY FIRST, TWO
48 THOUSAND TEN AND ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND FOUR-
49 TEEN AND COMPLETES CONSTRUCTION NO LATER THAN DECEMBER THIRTY-FIRST, TWO
50 THOUSAND SIXTEEN, AND WHICH IS DESIGNED AND OCCUPIED EXCLUSIVELY FOR
51 RESIDENTIAL PURPOSES.
52 (D) "EXEMPTION COMMENCEMENT DATE" SHALL MEAN THE FIRST TAXABLE STATUS
53 DATE AFTER THE LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR
54 THE SALE TO THE INITIAL PURCHASER OR, IN THE CASE OF A PRIVATE HOME IN A
55 CONDOMINIUM FORM OF OWNERSHIP, THE FIRST TAXABLE STATUS DATE AFTER THE
56 LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR THE SALE TO THE
A. 2472 11
1 FIRST INITIAL PURCHASER OF A CONDOMINIUM DWELLING UNIT IN SUCH PRIVATE
2 HOME.
3 (E) "INITIAL PURCHASER" SHALL MEAN THE FIRST PURCHASER OF A NEWLY
4 CONSTRUCTED PRIVATE HOME OR, IN THE CASE OF A PRIVATE HOME IN A CONDO-
5 MINIUM FORM OF OWNERSHIP, THE FIRST PURCHASER OF EACH DWELLING UNIT IN
6 SUCH NEWLY CONSTRUCTED PRIVATE HOME.
7 (F) "LOCAL HOUSING AGENCY" SHALL MEAN AN "AGENCY" AS DEFINED PURSUANT
8 TO SECTION SIX HUNDRED NINETY-TWO OF THE GENERAL MUNICIPAL LAW.
9 (G) "PURCHASE PRICE" SHALL MEAN THE ACTUAL PURCHASE PRICE TO BE PAID
10 FOR THE PRIVATE HOME BY THE INITIAL PURCHASER.
11 (H) "MAXIMUM PURCHASE PRICE" SHALL MEAN THE PURCHASE PRICE OF THE
12 PRIVATE HOME WHICH, IF EXCEEDED, WILL MAKE ANY EXEMPTION HEREUNDER
13 UNAVAILABLE.
14 (I) "MAXIMUM EXEMPTION AMOUNT" SHALL MEAN THE PORTION OF THE PURCHASE
15 PRICE TO BE EXEMPTED FROM TAXATION OF: (I) SIX HUNDRED SEVENTY-ONE THOU-
16 SAND DOLLARS IN THE CASE OF A PRIVATE HOME CONTAINING ONE DWELLING UNIT,
17 (II) SEVEN HUNDRED FIFTY-FIVE THOUSAND FIVE HUNDRED FORTY DOLLARS IN THE
18 CASE OF A PRIVATE HOME CONTAINING TWO DWELLING UNITS, (III) NINE HUNDRED
19 FOURTEEN THOUSAND SEVEN HUNDRED FIFTY DOLLARS IN THE CASE OF A PRIVATE
20 HOME CONTAINING THREE DWELLING UNITS, AND (IV) FOUR HUNDRED THOUSAND
21 DOLLARS FOR EACH INDIVIDUAL CONDOMINIUM UNIT IN THE CASE OF CONDOMINIUM
22 FORM OF OWNERSHIP IN A PRIVATE HOME. THE MAXIMUM PURCHASE PRICES
23 PROVIDED IN SUBPARAGRAPHS (I), (II), (III) AND (IV) OF THIS PARAGRAPH
24 SHALL BE THE LIMIT FOR THE APPLICATION OF ANY EXEMPTION FROM TAXATION
25 UNDER THIS SECTION. NO EXEMPTION SHALL BE AVAILABLE WHERE THE MAXIMUM
26 PURCHASE PRICE EXEMPTION IS IN EXCESS OF NINE HUNDRED FIFTY THOUSAND
27 DOLLARS FOR A ONE, TWO, OR THREE FAMILY PRIVATE HOME OR FOUR HUNDRED
28 THOUSAND DOLLARS FOR AN INDIVIDUAL CONDOMINIUM UNIT.
29 (J) "MULTIPLE DWELLING" SHALL MEAN A MULTIPLE DWELLING WITHIN THE
30 MEANING OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
31 (K) "PRIVATE HOME" SHALL MEAN AN OWNER OCCUPIED PRIVATE OR MULTIPLE
32 DWELLING CONTAINING NOT MORE THAN THREE DWELLING UNITS, AS INDICATED ON
33 THE CERTIFICATE OF OCCUPANCY FOR SUCH STRUCTURE.
34 2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AN
35 ELIGIBLE PROJECT SHALL BE EXEMPT FROM ALL LOCAL AND MUNICIPAL TAXES,
36 OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, DURING THE TAX YEAR OR
37 YEARS NEXT FOLLOWING THE EXEMPTION COMMENCEMENT DATE AS FOLLOWS: WITH
38 RESPECT TO PRIVATE HOMES CONTAINING LESS THAN FOUR DWELLING UNITS, TWO
39 YEARS OF EXEMPTION FROM ALL SUCH TAXES; FOLLOWED BY ONE YEAR OF
40 EXEMPTION FROM SEVENTY-FIVE PERCENT OF SUCH TAXES; FOLLOWED BY ONE YEAR
41 OF EXEMPTION FROM SIXTY-TWO AND ONE-HALF PERCENT OF SUCH TAXES; FOLLOWED
42 BY ONE YEAR OF EXEMPTION FROM FIFTY PERCENT OF SUCH TAXES; FOLLOWED BY
43 ONE YEAR OF EXEMPTION FROM THIRTY-SEVEN AND ONE-HALF PERCENT OF SUCH
44 TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWENTY-FIVE PERCENT OF
45 SUCH TAXES; AND FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWELVE AND
46 ONE-HALF PERCENT OF SUCH TAXES.
47 (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
48 SION, EXEMPTION FROM LOCAL AND MUNICIPAL TAXES UNDER THIS SECTION SHALL
49 NOT BE AVAILABLE TO THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH A
50 PRIVATE HOME IS CONSTRUCTED IF ANY PORTION OF SUCH TAX LOT (LAND AND
51 IMPROVEMENTS): (I) IS EXEMPT FROM LOCAL AND MUNICIPAL TAXES UNDER ANY
52 OTHER LAW; OR (II) CONTAINS A PRIVATE HOME THAT EXCEEDS THE MAXIMUM
53 PURCHASE PRICE OR AN INDIVIDUAL CONDOMINIUM UNIT THAT EXCEEDS A PURCHASE
54 PRICE OF FOUR HUNDRED THOUSAND DOLLARS.
55 (C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
56 SION, THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH THE PRIVATE HOME IS
A. 2472 12
1 CONSTRUCTED SHALL AT ALL TIMES BE SUBJECT TO LOCAL AND MUNICIPAL TAXES
2 IN AN AMOUNT NOT LESS THAN THE AMOUNT OF LOCAL AND MUNICIPAL TAXES THAT
3 WOULD BE PAYABLE THEREON BASED UPON THE ASSESSED VALUATION OF THE LAND
4 APPEARING ON THE ASSESSMENT ROLL IN THE FIRST YEAR AFTER COMPLETION OF
5 CONSTRUCTION.
6 3. (A) BASED ON THE CERTIFICATION OF THE LOCAL HOUSING AGENCY PURSUANT
7 TO THIS SECTION CERTIFYING ELIGIBILITY FOR EXEMPTION PURSUANT TO THIS
8 SECTION, THE DEPARTMENT OF FINANCE OF THE CITY OF NEW YORK SHALL IMPLE-
9 MENT THE AMOUNT OF EXEMPTION FROM LOCAL AND MUNICIPAL TAXES.
10 (B) THE LOCAL HOUSING AGENCY MAY PROMULGATE RULES AND REGULATIONS TO
11 CARRY OUT THE PROVISIONS OF THIS SECTION AND MAY REQUIRE PAYMENT OF A
12 NON-REFUNDABLE FILING FEE IN THE AMOUNT OF TWO HUNDRED DOLLARS PER
13 DWELLING UNIT FOR EACH APPLICATION FOR TAX EXEMPTION PURSUANT TO THIS
14 SECTION.
15 (C) UPON A FINDING BY THE LOCAL HOUSING AGENCY OR BY ANOTHER AGENCY
16 DESIGNATED BY SUCH LOCAL HOUSING AGENCY THAT A PRIVATE HOME IS NOT BEING
17 USED FOR RESIDENTIAL PURPOSES, IS THE SUBJECT OF A VIOLATION FOR AN
18 ILLEGAL OCCUPANCY, OR NOT OWNER OCCUPIED, EXEMPTION FROM TAXATION UNDER
19 THIS SECTION SHALL BE REVOKED AND SHALL TERMINATE PROSPECTIVELY;
20 PROVIDED, HOWEVER, THAT IN THE CASE OF AN ILLEGAL OCCUPANCY, THE OWNER
21 SHALL REPAY ALL TAXES, WITH INTEREST, FROM WHICH SUCH PRIVATE HOME WAS
22 EXEMPTED AND SUCH AMOUNT, IF UNPAID, SHALL BECOME A TAX LIEN AGAINST THE
23 PROPERTY.
24 S 12. This act shall take effect immediately; provided, however, that
25 the amendments made to subdivision (c) of section 11-245 of the adminis-
26 trative code of the city of New York shall be deemed to have been in
27 full force and effect as of December 31, 2007, and the amendments to
28 clause (A) of subparagraph (iv) of paragraph (a) of subdivision 2 of
29 section 421-a of the real property tax law made by section two of this
30 act, shall be deemed to have been in full force and effect as of Decem-
31 ber 28, 2010.
