STATE OF NEW YORK
________________________________________________________________________
7794
IN SENATE
June 18, 2012
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Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and
when printed to be committed to the Committee on Rules
AN ACT to amend the real property tax law, in relation to interim multi-
ple dwellings in a city with a population of one million or more
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The provisions of subdivision (c) of section 11-245 of the
2 administrative code of the city of New York shall not be applicable to
3 any multiple dwelling located on lots numbered 13 and 14 of Manhattan
4 block numbered 51, lots numbered 17, 18, and 21 of Manhattan block
5 number 90, lots numbered 7, 8, 10, 11, 57 and 111 of Manhattan block
6 numbered 1010, and lots numbered 33, 34 and 35 of Manhattan block
7 numbered 1259 as such lots and blocks are numbered as of the date this
8 act shall have become law, provided that the construction of such multi-
9 ple dwellings on those lots commences on or after January 1, 2007, and
10 on or before June 21, 2017, and provided that for all such multiple
11 dwellings the department of housing preservation and development of New
12 York City shall impose a requirement and certify that twenty percent of
13 the units on site are affordable to households of low and moderate
14 income pursuant to subdivision 7 of section 421-a of the real property
15 tax law. The provisions of subdivision (c) of section 11-245 of the
16 administrative code of the city of New York shall not be applicable to
17 any multiple dwelling that is located on lot 10 of Manhattan block
18 number 123, as such lot and block are numbered as of the date this act
19 shall have become law, provided that construction of such multiple
20 dwelling commenced on or after January 1, 2007, and on or before June
21 21, 2012, and provided further that the individual or agent thereof
22 seeking benefits pursuant to section 421-a of the real property tax law
23 enters into and fulfills the requirements of a memorandum of understand-
24 ing with the city of New York Department of Housing Preservation and
25 Development to fund in an amount not less than $9 million the
26 construction of affordable rental housing within the City of New York,
27 provided, however, that such amount required shall be reduced by the
28 value of negotiable certificates that the individual or agent thereof
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16348-01-2
S. 7794 2
1 seeking benefits purchased, pursuant to section 6-08 of title 28 of the
2 rules of the city of New York as such rules existed as of the date this
3 act shall have become law, in order to entitle such multiple dwelling to
4 the benefits pursuant to section 421-a of the real property tax law for
5 a specified number of units in the geographic exclusion area, provided
6 that such negotiable certificates were generated by a written agreement
7 with the Department of Housing Preservation and Development, and
8 provided further that, notwithstanding any other provision of law, bene-
9 fits granted pursuant to section 421-a of the real property tax law for
10 such multiple dwelling shall be granted as if construction commenced as
11 of the date this act shall have become law.
12 § 2. Subparagraph (i) of paragraph (a) of subdivision 2 of section
13 421-a of the real property tax law, as amended by section 38 of part B
14 of chapter 97 of the laws of 2011, is amended to read as follows:
15 (i) Within a city having a population of one million or more, new
16 multiple dwellings, except hotels, shall be exempt from taxation for
17 local purposes, other than assessments for local improvements, for the
18 tax year or years immediately following taxable status dates occurring
19 subsequent to the commencement and prior to the completion of
20 construction, but not to exceed three such tax years, [except for new
21 multiple dwellings the construction of which commenced between January
22 first, two thousand seven, and June thirtieth, two thousand nine, shall
23 have an additional thirty-six months to complete construction and shall
24 be eligible for full exemption from taxation for the first three years
25 of the period of construction; any eligible project that seeks to
26 utilize the six-year period of construction authorized by this section
27 must apply for a preliminary certificate of eligibility within one year
28 of the effective date of the rent act of 2011, provided, however that
29 such multiple dwellings shall be eligible for a maximum of three years
30 of benefits during the construction period,] and shall continue to be
31 exempt from such taxation in tax years immediately following the taxable
32 status date first occurring after the expiration of the exemption herein
33 conferred during construction so long as used at the completion of
34 construction for dwelling purposes for a period not to exceed ten years
35 in the aggregate after the taxable status date immediately following the
36 completion thereof, as follows:
37 (A) except as otherwise provided herein there shall be full exemption
38 from taxation during the period of construction or the period of three
39 years immediately following commencement of construction, whichever
40 expires sooner, [except for new multiple dwellings the construction of
41 which commenced between January first, two thousand seven, and June
42 thirtieth, two thousand nine, shall have an additional thirty-six months
43 to complete construction and shall be eligible for full exemption from
44 taxation for the first three years of the period of construction; any
45 eligible project that seeks to utilize the six-year period of
46 construction authorized by this section must apply for a preliminary
47 certificate of eligibility within one year of the effective date of the
48 rent act of 2011, provided, however that such multiple dwellings shall
49 be eligible for a maximum of three years of benefits during the
50 construction period,] and for two years following such period;
51 (B) followed by two years of exemption from eighty per cent of such
52 taxation;
53 (C) followed by two years of exemption from sixty per cent of such
54 taxation;
55 (D) followed by two years of exemption from forty per cent of such
56 taxation;
S. 7794 3
1 (E) followed by two years of exemption from twenty per cent of such
2 taxation;
3 The following table shall illustrate the computation of the tax
4 exemption:
5 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
6 Exemption
7 During Construction (maximum three years)[; 100%
8 except construction commenced between January
9 first, two thousand seven and June
10 thirtieth, two thousand nine (maximum
11 three years)]
12 Following completion of work
13 Year:
14 1 100%
15 2 100
16 3 80
17 4 80
18 5 60
19 6 60
20 7 40
21 8 40
22 9 20
23 10 20
24 § 3. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
25 of section 421-a of the real property tax law, as amended by section 39
26 of part B of chapter 97 of the laws of 2011, is amended to read as
27 follows:
28 (A) Within a city having a population of one million or more the local
29 housing agency may adopt rules and regulations providing that except in
30 areas excluded by local law new multiple dwellings, except hotels, shall
31 be exempt from taxation for local purposes, other than assessments for
32 local improvements, for the tax year or years immediately following
33 taxable status dates occurring subsequent to the commencement and prior
34 to the completion of construction, but not to exceed three such tax
35 years, [except for new multiple dwellings the construction of which
36 commenced between January first, two thousand seven, and June thirtieth,
37 two thousand nine, shall have an additional thirty-six months to
38 complete construction and shall be eligible for full exemption from
39 taxation for the first three years of the period of construction; any
40 eligible project that seeks to utilize the six-year period of
41 construction authorized by this section must apply for a preliminary
42 certificate of eligibility within one year of the effective date of the
43 rent act of 2011, provided, however that such multiple dwellings shall
44 be eligible for a maximum of three years of benefits during the
45 construction period,] and shall continue to be exempt from such taxation
46 in tax years immediately following the taxable status date first occur-
47 ring after the expiration of the exemption herein conferred during such
48 construction so long as used at the completion of construction for
49 dwelling purposes for a period not to exceed fifteen years in the aggre-
50 gate, as follows:
51 a. except as otherwise provided herein there shall be full exemption
52 from taxation during the period of construction or the period of three
S. 7794 4
1 years immediately following commencement of construction, whichever
2 expires sooner, [except for new multiple dwellings the construction of
3 which commenced between January first, two thousand seven, and June
4 thirtieth, two thousand nine, shall have an additional thirty-six months
5 to complete construction and shall be eligible for full exemption from
6 taxation for the first three years of the period of construction; any
7 eligible project that seeks to utilize the six-year period of
8 construction authorized by this section must apply for a preliminary
9 certificate of eligibility within one year of the effective date of the
10 rent act of 2011, provided, however that such multiple dwellings shall
11 be eligible for a maximum of three years of benefits during the
12 construction period,] and for eleven years following such period;
13 b. followed by one year of exemption from eighty percent of such taxa-
14 tion;
15 c. followed by one year of exemption from sixty percent of such taxa-
16 tion;
17 d. followed by one year of exemption from forty percent of such taxa-
18 tion;
19 e. followed by one year of exemption from twenty percent of such taxa-
20 tion.
21 § 4. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
22 2 of section 421-a of the real property tax law, as amended by section
23 40 of part B of chapter 97 of the laws of 2011, is amended to read as
24 follows:
25 (A) Within a city having a population of one million or more the local
26 housing agency may adopt rules and regulations providing that new multi-
27 ple dwellings, except hotels, shall be exempt from taxation for local
28 purposes, other than assessments for local improvements, for the tax
29 year or years immediately following taxable status dates occurring
30 subsequent to the commencement and prior to the completion of
31 construction, but not to exceed three such tax years, [except for new
32 multiple dwellings the construction of which commenced between January
33 first, two thousand seven, and June thirtieth, two thousand nine, shall
34 have an additional thirty-six months to complete construction and shall
35 be eligible for full exemption from taxation for the first three years
36 of the period of construction; any eligible project that seeks to
37 utilize the six-year period of construction authorized by this section
38 must apply for a preliminary certificate of eligibility within one year
39 of the effective date of the rent act of 2011, provided, however that
40 such multiple dwellings shall be eligible for a maximum of three years
41 of benefits during the construction period,] and shall continue to be
42 exempt from such taxation in tax years immediately following the taxable
43 status date first occurring after the expiration of the exemption herein
44 conferred during such construction so long as used at the completion of
45 construction for dwelling purposes for a period not to exceed twenty-
46 five years in the aggregate, provided that the area in which the project
47 is situated is a neighborhood preservation program area as determined by
48 the local housing agency as of June first, nineteen hundred eighty-five,
49 or is a neighborhood preservation area as determined by the New York
50 city planning commission as of June first, nineteen hundred eighty-five,
51 or is an area that was eligible for mortgage insurance provided by the
52 rehabilitation mortgage insurance corporation as of May first, nineteen
53 hundred ninety-two or is an area receiving funding for a neighborhood
54 preservation project pursuant to the neighborhood reinvestment corpo-
55 ration act (42 U.S.C. §§180 et seq.) as of June first, nineteen hundred
56 eighty-five, as follows:
S. 7794 5
1 a. except as otherwise provided herein there shall be full exemption
2 from taxation during the period of construction or the period of three
3 years immediately following commencement of construction, whichever
4 expires sooner, [except for new multiple dwellings the construction of
5 which commenced between January first, two thousand seven, and June
6 thirtieth, two thousand nine, shall have an additional thirty-six months
7 to complete construction and shall be eligible for full exemption from
8 taxation for the first three years of the period of construction; any
9 eligible project that seeks to utilize the six-year period of
10 construction authorized by this section must apply for a preliminary
11 certificate of eligibility within one year of the effective date of the
12 rent act of 2011, provided, however that such multiple dwellings shall
13 be eligible for a maximum of three years of benefits during the
14 construction period,] and for twenty-one years 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 § 5. Severability clause. If any clause, sentence, paragraph, subdivi-
24 sion, section or subpart of this act shall be adjudged by any court of
25 competent jurisdiction to be invalid, such judgment shall not affect,
26 impair, or invalidate the remainder thereof, but shall be confined in
27 its operation to the clause, sentence, paragraph, subdivision, section
28 or subpart thereof directly involved in the controversy in which such
29 judgment shall have been rendered. It is hereby declared to be the
30 intent of the legislature that this act would have been enacted even if
31 such invalid provisions had not been included herein.
32 § 6. This act shall take effect immediately, provided, however, that
33 the provisions of section one of this act shall be deemed to have been
34 in full force and effect on and after December 31, 2007; and provided
35 further, however, that the provisions of sections two, three and four of
36 this act shall be deemed to have been in full force and effect on and
37 after December 28, 2010; and provided that, with respect to any applica-
38 tion for a preliminary certificate of eligibility that is filed no later
39 than June 24, 2012, or that is filed for a project that was the subject
40 of mortgage foreclosure proceedings or other lien enforcement litigation
41 by a lender on or before June 24, 2012, such project shall be subject to
42 that portion of the definition of "commence" contained in item (1) of
43 clause (iv) of subparagraph (2) of paragraph (b) of subdivision (a) of
44 section 6-09 of title twenty-eight of the rules of the city of New York.
