STATE OF NEW YORK
________________________________________________________________________
8369
IN SENATE
June 25, 2010
___________
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 tax exemption
for new multiple dwellings
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of
2 section 421-a of the real property tax law, as amended by chapter 288 of
3 the laws of 1985, is amended to read as follows:
4 (i) Within a city having a population of one million or more, new
5 multiple dwellings, except hotels, shall be exempt from taxation for
6 local purposes, other than assessments for local improvements, for the
7 tax year or years immediately following taxable status dates occurring
8 subsequent to the commencement and prior to the completion of
9 construction, but not to exceed three such tax years, except for new
10 multiple dwellings the construction of which commenced between January
11 first, two thousand seven and June thirtieth, two thousand nine which
12 shall be exempt from taxation for local purposes, other than assessments
13 for local improvements, for the tax year or years immediately following
14 taxable status dates occurring subsequent to the commencement and prior
15 to the completion of construction, but not to exceed six such tax years,
16 and shall continue to be exempt from such taxation in tax years imme-
17 diately following the taxable status date first occurring after the
18 expiration of the exemption herein conferred during construction so long
19 as used at the completion of construction for dwelling purposes for a
20 period not to exceed ten years in the aggregate after the taxable status
21 date immediately following the completion thereof, as follows:
22 (A) except as otherwise provided herein there shall be full exemption
23 from taxation during the period of construction or the period of three
24 years immediately following commencement of construction, whichever
25 expires sooner, except for new multiple dwellings the construction of
26 which commenced between January first, two thousand seven and June thir-
27 tieth, two thousand nine which shall be eligible for full exemption from
28 taxation during the period of construction or the period of six years
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD17886-01-0
S. 8369 2
1 immediately following commencement of construction, whichever expires
2 sooner, and for two years following such period;
3 (B) followed by two years of exemption from eighty per cent of such
4 taxation;
5 (C) followed by two years of exemption from sixty per cent of such
6 taxation;
7 (D) followed by two years of exemption from forty per cent of such
8 taxation;
9 (E) followed by two years of exemption from twenty per cent of such
10 taxation;
11 The following table shall illustrate the computation of the tax
12 exemption:
13 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
14 Exemption
15 During Construction (maximum three years, 100%
16 except for construction commencement
17 between January first, two thousand seven
18 and June thirtieth, two thousand nine which
19 has a maximum of six years)
20 Following completion of work
21 Year:
22 1 100%
23 2 100
24 3 80
25 4 80
26 5 60
27 6 60
28 7 40
29 8 40
30 9 20
31 10 20
32 § 2. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
33 of section 421-a of the real property tax law, as amended by chapter 288
34 of the laws of 1985, is amended to read as follows:
35 (A) Within a city having a population of one million or more the local
36 housing agency may adopt rules and regulations providing that except in
37 areas excluded by local law new multiple dwellings, except hotels, shall
38 be exempt from taxation for local purposes, other than assessments for
39 local improvements, for the tax year or years immediately following
40 taxable status dates occurring subsequent to the commencement and prior
41 to the completion of construction, but not to exceed three such tax
42 years, except for new multiple dwellings the construction of which
43 commenced between January first, two thousand seven and June thirtieth,
44 two thousand nine which shall be exempt from taxation for local
45 purposes, other than assessments for local improvements, for the tax
46 year or years immediately following taxable status dates occurring
47 subsequent to the commencement and prior to the completion of
48 construction, but not to exceed six such tax years, and shall continue
49 to be exempt from such taxation in tax years immediately following the
50 taxable status date first occurring after the expiration of the
51 exemption herein conferred during such construction so long as used at
S. 8369 3
1 the completion of construction for dwelling purposes for a period not to
2 exceed fifteen years in the aggregate, as follows:
3 a. except as otherwise provided herein there shall be full exemption
4 from taxation during the period of construction or the period of three
5 years immediately following commencement of construction, whichever
6 expires sooner, except for new multiple dwellings the construction of
7 which commenced between January first, two thousand seven and June thir-
8 tieth, two thousand nine which shall be eligible for full exemption from
9 taxation during the period of construction or the period of six years
10 immediately following commencement of construction, whichever expires
11 sooner, and for eleven years following such period;
12 b. followed by one year of exemption from eighty percent of such taxa-
13 tion;
14 c. followed by one year of exemption from sixty percent of such taxa-
15 tion;
16 d. followed by one year of exemption from forty percent of such taxa-
17 tion;
18 e. followed by one year of exemption from twenty percent of such taxa-
19 tion.
20 § 3. Subclause b of clause (C) of subparagraph (ii) of paragraph (a)
21 of subdivision 2 of section 421-a of the real property tax law, as
22 amended by chapter 288 of the laws of 1985, is amended to read as
23 follows:
24 b. the local housing agency has imposed a requirement or has certified
25 that twenty percent of the units be affordable to families of low and
26 moderate income.
27 The following table shall illustrate the computation of the exemption:
28 CONSTRUCTION OF CERTAIN
29 MULTIPLE DWELLINGS
30 Exemption
31 During Construction (maximum three years, 100%
32 except for construction commencement
33 between January first, two thousand seven
34 and June thirtieth, two thousand nine which
35 has a maximum of six years)
36 Following completion of work
37 Year:
38 1 through 11 100%
39 12 80
40 13 60
41 14 40
42 15 20
43 § 4. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
44 2 of section 421-a of the real property tax law, as amended by chapter
45 702 of the laws of 1992, is amended to read as follows:
46 (A) Within a city having a population of one million or more the local
47 housing agency may adopt rules and regulations providing that new multi-
48 ple dwellings, except hotels, shall be exempt from taxation for local
49 purposes, other than assessments for local improvements, for the tax
50 year or years immediately following taxable status dates occurring
51 subsequent to the commencement and prior to the completion of
52 construction, but not to exceed three such tax years, except for new
53 multiple dwellings the construction of which commenced between January
S. 8369 4
1 first, two thousand seven and June thirtieth, two thousand nine which
2 shall be exempt from taxation for local purposes, other than assessments
3 for local improvements, for the tax year or years immediately following
4 taxable status dates occurring subsequent to the commencement and prior
5 to the completion of construction, but not to exceed six such tax years,
6 and shall continue to be exempt from such taxation in tax years imme-
7 diately following the taxable status date first occurring after the
8 expiration of the exemption herein conferred during such construction so
9 long as used at the completion of construction for dwelling purposes for
10 a period not to exceed twenty-five years in the aggregate, provided that
11 the area in which the project is situated is a neighborhood preservation
12 program area as determined by the local housing agency as of June first,
13 nineteen hundred eighty-five, or is a neighborhood preservation area as
14 determined by the New York city planning commission as of June first,
15 nineteen hundred eighty-five, or is an area that was eligible for mort-
16 gage insurance provided by the rehabilitation mortgage insurance corpo-
17 ration as of May first, nineteen hundred ninety-two or is an area
18 receiving funding for a neighborhood preservation project pursuant to
19 the neighborhood reinvestment corporation act (42 U.S.C. §§180 et seq.)
20 as of June first, nineteen hundred eighty-five, as follows:
21 a. except as otherwise provided herein there shall be full exemption
22 from taxation during the period of construction or the period of three
23 years immediately following commencement of construction, whichever
24 expires sooner, except for new multiple dwellings the construction of
25 which commenced between January first, two thousand seven and June thir-
26 tieth, two thousand nine which shall be eligible for full exemption from
27 taxation during the period of construction or the period of six years
28 immediately following commencement of construction, whichever expires
29 sooner, and for twenty-one years 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 § 5. Subclause b of clause (D) of subparagraph (iii) of paragraph (a)
39 of subdivision 2 of section 421-a of the real property tax law, as
40 amended by chapter 288 of the laws of 1985, is amended to read as
41 follows:
42 b. the local housing agency has imposed a requirement or has certified
43 that twenty percent of the units be affordable to families of low and
44 moderate income.
45 The following table shall illustrate the computation of the exemption:
46 CONSTRUCTION OF CERTAIN
47 MULTIPLE DWELLINGS
48 Exemption
49 During Construction (maximum three years, 100%
50 except for construction
51 commencement between January first, two
52 thousand seven and June thirtieth,
53 two thousand nine which has a maximum
54 of six years)
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1 Following completion of work
2 Year:
3 1 through 21 100%
4 22 80
5 23 60
6 24 40
7 25 20
8 § 6. Item (B) of subparagraph (iv) of paragraph (a) of subdivision 2
9 of section 421-a of the real property tax law, as added by chapter 832
10 of the laws of 1992, is amended to read as follows:
11 (B) Such new multiple dwellings, except hotels, shall be exempt from
12 taxation for local purposes, other than assessments for local improve-
13 ments for the tax year or years immediately following taxable status
14 dates occurring subsequent to the commencement and prior to the
15 completion of construction, but not to exceed three such tax years,
16 except for new multiple dwellings the construction of which commenced
17 between January first, two thousand seven and June thirtieth, two thou-
18 sand nine which shall be exempt from taxation for local purposes, other
19 than assessments for local improvements, for the tax year or years imme-
20 diately following taxable status dates occurring subsequent to the
21 commencement and prior to the completion of construction, but not to
22 exceed six such tax years, and shall continue to be exempt from such
23 taxation in tax years immediately following the taxable status dates
24 first occurring after the expiration of the exemption herein conferred
25 during such construction so long as used at the completion of
26 construction for dwelling purposes for a period not to exceed twenty
27 years in the aggregate, as follows:
28 a. except as otherwise provided herein, there shall be full exemption
29 from taxation during the period of construction or the period of three
30 years immediately following commencement of construction, whichever
31 expires sooner, except for new multiple dwellings the construction of
32 which commenced between January first, two thousand seven and June thir-
33 tieth, two thousand nine which shall be eligible for full exemption from
34 taxation during the period of construction or the period of six years
35 immediately following commencement of construction, whichever expires
36 sooner, and for twelve years following such period;
37 b. followed by two years of exemption from eighty percent of such
38 taxation;
39 c. followed by two years of exemption from sixty percent of such taxa-
40 tion;
41 d. followed by two years of exemption from forty percent of such taxa-
42 tion;
43 e. followed by two years of exemption from twenty percent of such
44 taxation.
45 The following table shall illustrate the computation of the exemption:
46 CONSTRUCTION OF CERTAIN
47 MULTIPLE DWELLINGS
48 During construction (maximum three Exemption 100%
49 years, except for construction
50 commencement between January first,
51 two thousand seven and June thirtieth,
52 two thousand nine which has a maximum
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1 of six years)
2 Following completion of work year:
3 1 through 12 100%
4 13-14 80%
5 15-16 60%
6 17-18 40%
7 19-20 20%
8 § 7. The opening paragraph of item (A) of subparagraph (iv) of para-
9 graph (a) of subdivision 2 of section 421-a of the real property tax
10 law, as amended by chapter 618 of the laws of 2007, is amended to read
11 as follows:
12 Unless excluded by local law, in the city of New York, the benefits of
13 this subparagraph shall be available in the borough of Manhattan for new
14 multiple dwellings on tax lots now existing or hereafter created south
15 of or adjacent to either side of one hundred tenth street [which] that
16 commence construction after July first, nineteen hundred ninety-two and
17 before December twenty-eighth, two thousand [ten] fourteen only if:
18 § 8. Subparagraph (ii) of paragraph (c) of subdivision 2 of section
19 421-a of the real property tax law, as amended by chapter 618 of the
20 laws of 2007, is amended to read as follows:
21 (ii) construction is commenced after January first, nineteen hundred
22 seventy-five and before December twenty-eighth, two thousand [ten] four-
23 teen provided, however, that such commencement period shall not apply to
24 multiple dwellings eligible for benefits under subparagraph (iv) of
25 paragraph (a) of this subdivision;
26 § 9. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
27 erty tax law, as amended by chapter 995 of the laws of 1981, is amended
28 to read as follows:
29 (g) [For] Notwithstanding anything to the contrary contained in any
30 other state or local law, for purposes of this section, construction
31 shall be deemed "commenced" [when excavation or alteration has begun in
32 good faith on the basis of approved construction plans] upon the date
33 that, pursuant to any permit approved by a department of buildings, (i)
34 a new metal or concrete structure that shall perform a load bearing
35 function is installed as part of a foundation, (ii) at least one fully
36 driven pile or caisson is installed, or (iii) the actual construction,
37 alteration or improvement of a pre-existing building or structure begins
38 in a project that includes new residential construction and the concur-
39 rent conversion, alteration or improvement of a pre-existing building or
40 structure; provided, however, that with respect to subparagraphs (i),
41 (ii) and (iii) of this paragraph, the construction of such multiple
42 dwelling is completed without undue delay.
43 § 10. The opening paragraph and paragraph (iv) of subdivision 3 of
44 section 421-a of the real property tax law, the opening paragraph as
45 amended by chapter 655 of the laws of 1978 and paragraph (iv) as amended
46 by chapter 703 of the laws of 1976, are amended to read as follows:
47 [Application forms for exemption under this section shall be filed
48 with the assessors between February first and March fifteenth and, based
49 on the certification of the local housing agency as herein provided, the
50 assessors shall certify to the collecting officer the amount of taxes to
51 be abated.] If there be in a city of one million population or more a
52 department of housing preservation and development, the term "housing
53 agency" shall mean only such department of housing preservation and
54 development. [No such application shall be accepted by the assessors
55 unless accompanied by a certificate of the local housing agency certify-
S. 8369 7
1 ing the applicant's eligibility pursuant to subdivisions two and four of
2 this section.] No [such] certification of eligibility for benefits
3 pursuant to this section shall be issued by the local housing agency
4 until such agency determines the initial adjusted monthly rent to be
5 paid by tenants residing in rental dwelling units contained within the
6 multiple dwelling and the comparative adjusted monthly rent that would
7 have to be paid by such tenants if no tax exemption were applicable as
8 provided by this section. The initial adjusted monthly rent will be
9 certified by the local housing agency as the first rent for the subject
10 dwelling units. A copy of such certification with respect to such units
11 shall be attached by the applicant to the first effective lease or occu-
12 pancy agreement. The initial adjusted monthly rent shall reflect the
13 full tax exemption benefits as approved by the agency.
14 (iv) The adjusted monthly rent per room per month shall be multiplied
15 by the room count of each rental dwelling unit to provide the initial
16 adjusted monthly rent for such dwelling unit. The agency may allow
17 adjustments in the initial adjusted monthly rent for any particular
18 dwelling units provided that the total of the initial adjusted monthly
19 rents for all of the rental dwelling units in a multiple dwelling shall
20 not exceed the total expenses of such multiple dwelling.
21 The agency shall determine the estimated comparative adjusted monthly
22 rent that would have to be paid if no tax exemption were applicable as
23 provided by this section by adding to the adjusted monthly rent for each
24 dwelling unit as hereinabove computed an amount equal to (a) the differ-
25 ence between the projected real property taxes which would be levied on
26 the multiple dwelling and the land on which it is situated at the time
27 of estimated initial occupancy if no tax abatement were applicable as
28 provided by this section and the projected real property taxes hereina-
29 bove utilized in connection with the computation of total expenses; (b)
30 divided by the room count of the building as per this section; and (c)
31 multiplied by the applicants approved room count of each such dwelling
32 unit.
33 The local housing agency may promulgate rules and regulations to carry
34 out the provisions of this section, not inconsistent with the provisions
35 hereof, [and may require a reasonable filing fee in an amount provided
36 by such rules and regulations] including, but not limited to, rules and
37 regulations relating to the filing fee authorized pursuant to paragraph
38 b of subdivision four of this section.
39 § 11. Paragraph b of subdivision 4 of section 421-a of the real prop-
40 erty tax law, as added by chapter 744 of the laws of 2004, is amended to
41 read as follows:
42 b. The local housing agency [may] shall require a filing fee not to
43 exceed the greater of (i) four-tenths of one percent of the total
44 project cost, or (ii) if the building will be owned as a cooperative or
45 condominium, four-tenths of one percent of the total project cost or
46 four-tenths of one percent of the total project sell-out price stated in
47 the last amendment to the offering plan accepted for filing by the
48 attorney general of the state, at the option of the applicant. Such
49 total project cost or total project sell-out price shall be determined
50 pursuant to rules promulgated by the local housing agency. Notwithstand-
51 ing the foregoing, the local housing agency may promulgate rules impos-
52 ing an additional fee if an application, or any part thereof, or
53 submission in connection therewith, is defective and such defect delays
54 the processing of such application or causes the local housing agency to
55 expend additional resources in the processing of such application.
S. 8369 8
1 § 12. Subparagraph (i) of paragraph (a) of subdivision 6 of section
2 421-a of the real property tax law, as added by chapter 110 of the laws
3 of 2005, is amended to read as follows:
4 (i) "Covered project." (A) A new building located within the Green-
5 point - Williamsburg waterfront exclusion area, (B) two or more build-
6 ings which are part of one contiguous development entirely located with-
7 in the Greenpoint - Williamsburg waterfront exclusion area, (C) two or
8 more buildings which are located within the Greenpoint - Williamsburg
9 waterfront exclusion area and are part of a single development parcel
10 specifically identified in section [62-831] 62-931 of the local zoning
11 resolution, or (D) where so authorized in writing by the local housing
12 agency, one or more buildings located within the Greenpoint - Williams-
13 burg waterfront exclusion area and one or more buildings located outside
14 the Greenpoint - Williamsburg waterfront exclusion area but within
15 Community District Number One in the borough of Brooklyn. The cumulative
16 number of affordable units located outside the Greenpoint - Williamsburg
17 waterfront exclusion area in all covered projects described in clause
18 (D) of this subparagraph shall not exceed two hundred. A building
19 located outside the Greenpoint - Williamsburg waterfront exclusion area
20 which is part of a covered project described in clause (D) of this
21 subparagraph shall not contain any affordable units with respect to
22 which an application pending before a governmental entity on the effec-
23 tive date of this subdivision or a written agreement in effect on the
24 effective date of this subdivision provided for the development of such
25 affordable units.
26 § 13. This act shall take effect immediately.
