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A07758 Summary:

BILL NOA07758
 
SAME ASSAME AS S04709-A
 
SPONSORBraunstein
 
COSPNSRBores
 
MLTSPNSR
 
Amd 489, RPT L
 
Authorizes a tax abatement for alterations and improvements to multiple dwellings for purposes of preserving habitability in affordable housing.
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A07758 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7758
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 6, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred to the
          Committee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in relation to authorizing  a
          tax  abatement  for alterations and improvements to multiple dwellings
          for purposes of preserving habitability in affordable housing

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  489  of  the real property tax law is amended by
     2  adding a new subdivision 21 to read as follows:
     3    21. (a) Definitions. For the purposes of this subdivision:
     4    (1) "Affordable rent" shall mean the maximum rent within the marketing
     5  band that is allowed for an affordable  rental  unit  as  such  rent  is
     6  established by the local housing agency.
     7    (2) "Affordable rental unit" shall mean a dwelling unit in an eligible
     8  rental  building  that, as of the filing of an application for a certif-
     9  icate of eligibility and reasonable cost, has a rent  at  or  below  the
    10  affordable rent.
    11    (3)  "Certificate  of  eligibility  and  reasonable cost" shall mean a
    12  document issued by the local housing  agency  that  establishes  that  a
    13  property  is eligible for rehabilitation program benefits and sets forth
    14  the certified reasonable cost of the  eligible  construction  for  which
    15  such benefits shall be received.
    16    (4)  "Certified reasonable cost schedule" shall mean a table providing
    17  maximum dollar limits for specified alterations and improvements, estab-
    18  lished, and updated as necessary, by the local housing agency.
    19    (5) "Checklist" shall mean a document that the  local  housing  agency
    20  issues requesting additional information or documentation that is neces-
    21  sary  for  further  assessment  of  an  application for a certificate of
    22  eligibility and reasonable cost where  such  application  contained  all
    23  information and documentation required at the initial filing.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08932-03-3

        A. 7758                             2
 
     1    (6)   "Commencement   date"  shall  mean,  with  respect  to  eligible
     2  construction, the date on which any physical  operation  undertaken  for
     3  the purpose of performing such eligible construction lawfully begins.
     4    (7)   "Completion   date"   shall   mean,  with  respect  to  eligible
     5  construction, the date on which:
     6    (A) every physical operation undertaken for the purpose of all  eligi-
     7  ble construction has concluded; and
     8    (B)  all such eligible construction has been completed to a reasonable
     9  and customary standard that renders such eligible  construction  capable
    10  of  use  for  the  purpose  for  which  such  eligible  construction was
    11  intended.
    12    (8) "Dwelling unit" shall mean  any  residential  accommodation  in  a
    13  class A multiple dwelling that:
    14    (A)  is  arranged,  designed,  used or intended for use by one or more
    15  persons living together and maintaining a common household;
    16    (B) contains at least one room; and
    17    (C) contains within such accommodation  lawful  sanitary  and  kitchen
    18  facilities reserved for its occupants.
    19    (9)  "Eligible  building"  shall  mean an eligible rental building, an
    20  eligible homeownership building, or an eligible regulated  homeownership
    21  building,  provided  that  such building contains three or more dwelling
    22  units.
    23    (10) "Eligible construction" shall mean alterations or improvements to
    24  an eligible building that:
    25    (A) are specifically identified on the certified reasonable cost sche-
    26  dule;
    27    (B) meet the minimum scope of work threshold;
    28    (C) have a completion date that is after June twenty-ninth, two  thou-
    29  sand twenty-two and prior to June thirtieth, two thousand twenty-six and
    30  that is not more than thirty months after their commencement date; and
    31    (D) are not attributable to any increased cubic content in such eligi-
    32  ble building.
    33    (11) "Eligible homeownership building" shall mean an existing building
    34  that:
    35    (A)  is a class A multiple dwelling operated as condominium or cooper-
    36  ative housing;
    37    (B) is not operating in whole or in part as a hotel; and
    38    (C) has an average assessed valuation, including the valuation of  the
    39  land, that as of the commencement date does not exceed the homeownership
    40  average assessed valuation limitation.
    41    (12)  "Eligible regulated homeownership building" shall mean an exist-
    42  ing building that is a class A multiple dwelling owned and  operated  by
    43  either:
    44    (A)  a mutual company that continues to be organized and operated as a
    45  mutual company and that has entered into and recorded a  mutual  company
    46  regulatory agreement; or
    47    (B)  a mutual redevelopment company that continues to be organized and
    48  operated as a mutual redevelopment company and that has entered into and
    49  recorded a mutual redevelopment company regulatory agreement.
    50    (13) "Eligible rental building" shall mean an existing building that:
    51    (A) is a class A multiple dwelling in which all of the dwelling  units
    52  are operated as rental housing;
    53    (B) is not operating in whole or in part as a hotel; and
    54    (C) satisfies one of the following conditions:
    55    (i) not less than fifty percent of the dwelling units in such building
    56  are affordable rental units;

        A. 7758                             3
 
     1    (ii)  such  building is owned and operated by a limited-profit housing
     2  company; or
     3    (iii)  such  building  is  the  recipient  of substantial governmental
     4  assistance.
     5    (14) "Existing building" shall mean an enclosed structure which:
     6    (A) is permanently affixed to the land;
     7    (B) has one or more floors and a roof;
     8    (C) is bounded by walls;
     9    (D) has at least one principal entrance utilized for day-to-day pedes-
    10  trian ingress and egress;
    11    (E) has a certificate of occupancy or equivalent document that  is  in
    12  effect prior to the commencement date; and
    13    (F)  exclusive of the land, has an assessed valuation of more than one
    14  thousand dollars for the fiscal year immediately preceding the commence-
    15  ment date.
    16    (15) "Homeownership average assessed valuation limitation" shall  mean
    17  an  average assessed valuation of forty-five thousand dollars per dwell-
    18  ing unit.
    19    (16) "Limited-profit housing company" shall have the same  meaning  as
    20  "company"  set  forth  in  section twelve of the private housing finance
    21  law.
    22    (17) "Market rental unit" shall mean a dwelling unit  in  an  eligible
    23  rental building other than an affordable rental unit.
    24    (18)  "Marketing  band"  shall  mean maximum rent amounts ranging from
    25  twenty percent of eighty percent of the area median income, adjusted for
    26  family size, to thirty percent of eighty  percent  of  the  area  median
    27  income, adjusted for family size.
    28    (19)  "Minimum  scope  of work threshold" shall mean a total amount of
    29  certified reasonable cost established by rules and  regulations  of  the
    30  local  housing  agency,  provided that such amount shall be no less than
    31  one thousand five hundred dollars for each dwelling unit in existence on
    32  the completion date.
    33    (20) "Multiple dwelling" shall have the meaning set forth  in  section
    34  four of the multiple dwelling law.
    35    (21)  "Mutual  company"  shall  have  the meaning set forth in section
    36  twelve of the private housing finance law.
    37    (22) "Mutual company regulatory agreement" shall mean  a  binding  and
    38  irrevocable  agreement  between a mutual company and the commissioner of
    39  housing, the mutual company supervising agency, the New York city  hous-
    40  ing development corporation, or the New York state housing finance agen-
    41  cy  prohibiting the dissolution or reconstitution of such mutual company
    42  pursuant to section thirty-five of the private housing finance  law  for
    43  not  less  than  fifteen  years  from the commencement of rehabilitation
    44  program benefits for the existing building owned and  operated  by  such
    45  mutual company.
    46    (23)  "Mutual company supervising agency" shall have the same meaning,
    47  with respect to any mutual company, as "supervising agency" set forth in
    48  section two of the private housing finance law.
    49    (24) "Mutual redevelopment company" shall have  the  same  meaning  as
    50  "mutual" when applied to a redevelopment company as set forth in section
    51  one hundred two of the private housing finance law.
    52    (25)  "Mutual redevelopment company regulatory agreement" shall mean a
    53  binding and irrevocable agreement between a mutual redevelopment company
    54  and the commissioner of housing, the redevelopment  company  supervising
    55  agency,  the  New  York city housing development corporation, or the New
    56  York state housing finance agency prohibiting the dissolution or  recon-

        A. 7758                             4
 
     1  stitution  of  such mutual redevelopment company pursuant to section one
     2  hundred twenty-three of the private housing finance law until the earli-
     3  er of: (A) fifteen years from the commencement of rehabilitation program
     4  benefits  for  the  existing  building owned and operated by such mutual
     5  redevelopment company; or (B) the expiration of any tax exemption grant-
     6  ed to such mutual redevelopment company pursuant to section one  hundred
     7  twenty-five of the private housing finance law.
     8    (26)  "Redevelopment  company"  shall  have  the  meaning set forth in
     9  section one hundred two of the private housing finance law.
    10    (27) "Redevelopment company supervising agency" shall  have  the  same
    11  meaning,  with  respect  to  any  redevelopment company, as "supervising
    12  agency" set forth in section one hundred  two  of  the  private  housing
    13  finance law.
    14    (28)  "Rehabilitation  program  benefits" shall mean abatement of real
    15  property taxes pursuant to this subdivision.
    16    (29) "Rent regulation" shall mean, collectively, the emergency housing
    17  rent control law, any local law enacted pursuant to the local  emergency
    18  housing rent control act, the rent stabilization law of nineteen hundred
    19  sixty-nine,  the  rent  stabilization  code,  and  the  emergency tenant
    20  protection act of nineteen seventy-four, all as  in  effect  as  of  the
    21  effective  date  of  this subdivision, or as any such statute is amended
    22  thereafter, together with any successor statutes or regulations address-
    23  ing substantially the same subject matter.
    24    (30) "Restriction period" shall mean, notwithstanding any  termination
    25  or  revocation  of rehabilitation program benefits prior to such period,
    26  fifteen years from the initial receipt of  rehabilitation  benefits,  or
    27  such  additional period of time as may be imposed pursuant to clause (A)
    28  of subparagraph five of paragraph (e) of this subdivision.
    29    (31) "Substantial governmental assistance" shall mean  grants,  loans,
    30  or  subsidies  from  any  federal,  state, or local government agency or
    31  instrumentality in furtherance of  a  program  for  the  development  of
    32  affordable  housing  approved by the local housing agency, provided that
    33  such grants, loans, or subsidies are provided in accordance with a regu-
    34  latory agreement entered into with such agency or  instrumentality  that
    35  is  in effect as of the filing date of the application for a certificate
    36  of eligibility and reasonable cost.
    37    (32) "Substantial interest" shall mean an ownership  interest  of  ten
    38  percent or more.
    39    (b) Abatement. Notwithstanding the provisions of any other subdivision
    40  of this section or of any general, special or local law to the contrary,
    41  any  city  to  which  the  multiple  dwelling  law is applicable, acting
    42  through its local legislative body or other governing agency, is  hereby
    43  authorized  and empowered, until and including June thirtieth, two thou-
    44  sand twenty-five, to adopt and amend local laws or  ordinances  allowing
    45  for an abatement of real property taxes on an eligible building in which
    46  eligible construction has been completed, provided that:
    47    (1)  Such  abatement shall not exceed seventy percent of the certified
    48  reasonable cost of the eligible construction, as determined under  rules
    49  and regulations of the local housing agency;
    50    (2) Such abatement shall not be effective for more than twenty years;
    51    (3)  The  annual  abatement  of  real  property taxes on such eligible
    52  building shall not exceed eight  and  one-third  percent  of  the  total
    53  certified reasonable cost of such eligible construction;
    54    (4)  The  annual  abatement  of  real  property taxes on such eligible
    55  building in any consecutive twelve-month period shall in no event exceed
    56  the amount of real property taxes payable in  such  twelve-month  period

        A. 7758                             5
 
     1  for  such  building,  provided,  however,  that such abatement shall not
     2  exceed fifty percent of the amount of real  property  taxes  payable  in
     3  such twelve-month period for any of the following:
     4    (A)  an  eligible  rental  building  owned by a limited-profit housing
     5  company or a redevelopment company;
     6    (B) an eligible homeownership building; and
     7    (C) an eligible regulated homeownership building; and
     8    (5) Such abatement shall become effective  beginning  with  the  first
     9  quarterly  tax  bill  immediately  following the date of issuance of the
    10  certificate of eligibility and reasonable cost.
    11    (c) Authority of city to adopt rules and regulations. Any  such  local
    12  law  or ordinance shall authorize the adoption of rules and regulations,
    13  not inconsistent with this subdivision, by the local housing agency  and
    14  any other local agency necessary for the implementation of this subdivi-
    15  sion.
    16    (d)  Application.    (1) Any such local law or ordinance shall require
    17  that an application for a certificate of eligibility and reasonable cost
    18  pursuant to this subdivision be made after the completion date and on or
    19  before the later of (A) four months from  the  effective  date  of  such
    20  local law or ordinance; or (B) four months from such completion date.
    21    (2)  Such  application shall include evidence of eligibility for reha-
    22  bilitation program benefits and evidence of reasonable cost as shall  be
    23  satisfactory  to the local housing agency including, but not limited to,
    24  evidence showing the cost of eligible construction.
    25    (3) The local housing agency shall require a non-refundable filing fee
    26  that shall be paid by a certified check  or  cashier's  check  upon  the
    27  filing of an application for a certificate of eligibility and reasonable
    28  cost.  Such fee shall be (A) one thousand dollars, plus (B) seventy-five
    29  dollars for each dwelling unit in excess of six dwelling  units  in  the
    30  eligible building that is the subject of such application.
    31    (4)  Any  application that is filed pursuant to this paragraph that is
    32  missing any of the information and  documentation  required  at  initial
    33  filing  by  such local law or ordinance and any rules and regulations of
    34  the local housing agency shall be denied, provided that a  new  applica-
    35  tion for the same eligible construction, together with a new non-refund-
    36  able  filing  fee, may be filed within fifteen days of the date of issu-
    37  ance of such denial. If such second application is also missing any such
    38  required information and  documentation,  it  shall  be  denied  and  no
    39  further applications for the same eligible construction shall be permit-
    40  ted.
    41    (5)  The  failure  of  an applicant to respond to any checklist within
    42  thirty days of the date of its issuance  by  the  local  housing  agency
    43  shall  result in denial of such application, and no further applications
    44  for the same eligible construction shall be permitted. The local housing
    45  agency shall issue not more than three checklists  per  application.  An
    46  application  for  a certificate of eligibility and reasonable cost shall
    47  be denied when the local housing agency does not have a sufficient basis
    48  to issue a certificate of eligibility  and  reasonable  cost  after  the
    49  timely  response  of an applicant to the third checklist concerning such
    50  application. After the local housing agency has  denied  an  application
    51  for  the  reason  described in the preceding sentence, such agency shall
    52  permit no further applications for the same eligible construction.
    53    (6) An application for a certificate  of  eligibility  and  reasonable
    54  cost shall also include an affidavit of no harassment.
    55    (A) Such affidavit shall set forth the following information:

        A. 7758                             6
 
     1    (i)  the  name  of  every  owner  of record and owner of a substantial
     2  interest in the eligible building or entity owning the eligible building
     3  or sponsoring the eligible construction; and
     4    (ii)  a statement that none of such persons had, within the five years
     5  prior to the completion date, been found to have harassed or  unlawfully
     6  evicted  tenants  by  judgment  or  determination  of a court or agency,
     7  including a non-governmental agency having appropriate  legal  jurisdic-
     8  tion under the penal law, any state or local law regulating rents or any
     9  state  or  local  law  relating  to  harassment  of  tenants or unlawful
    10  eviction.
    11    (B) No eligible building shall be eligible for an  abatement  pursuant
    12  to paragraph (b) of this subdivision where:
    13    (i) any affidavit required under this subparagraph has not been filed;
    14  or
    15    (ii)  any such affidavit contains a willful misrepresentation or omis-
    16  sion of any material fact; or
    17    (iii) any owner of record or owner of a substantial  interest  in  the
    18  eligible  building  or entity owning the eligible building or sponsoring
    19  the eligible construction has been found, by judgment  or  determination
    20  of  a court or agency, including a non-governmental agency having appro-
    21  priate legal jurisdiction under the penal law, any state  or  local  law
    22  regulating  rents  or  any  state or local law relating to harassment of
    23  tenants or unlawful eviction, to have, within the five  years  prior  to
    24  the  completion  date, harassed or unlawfully evicted tenants, until and
    25  unless the finding is reversed on appeal.
    26    (C) Notwithstanding the provisions of any general,  special  or  local
    27  law  to  the  contrary, the corporation counsel or other legal represen-
    28  tative of a city having a population of  one  million  or  more  or  the
    29  district  attorney  of any county, may institute an action or proceeding
    30  in any court of competent jurisdiction that may be appropriate or neces-
    31  sary to determine whether any owner of record or owner of a  substantial
    32  interest in the eligible building or entity owning the eligible building
    33  or  sponsoring  the  eligible  construction  has  harassed or unlawfully
    34  evicted tenants as described in this subparagraph.
    35    (7) Notwithstanding the provisions of any general,  special  or  local
    36  law  to  the contrary, the local housing agency may require by rules and
    37  regulations that an application for a  certificate  of  eligibility  and
    38  reasonable cost be filed electronically.
    39    (e) Additional requirements for an eligible rental building other than
    40  one  owned  and  operated by a limited-profit housing company.  Any such
    41  local law or ordinance shall, in addition to  all  other  conditions  of
    42  eligibility for rehabilitation program benefits set forth in this subdi-
    43  vision,  require  that an eligible rental building, other than one owned
    44  and operated by a limited-profit housing company, also comply  with  all
    45  provisions of this paragraph. Notwithstanding the foregoing, an eligible
    46  rental  building  that  is  the  recipient  of  substantial governmental
    47  assistance shall not be  required  to  comply  with  the  provisions  of
    48  subparagraph two of this paragraph.
    49    (1)  Notwithstanding any provision of rent regulation to the contrary,
    50  any market rental unit within such eligible rental building  subject  to
    51  rent  regulation  as of the filing date of the application for a certif-
    52  icate of eligibility and reasonable cost and any affordable rental  unit
    53  within such eligible rental building shall be subject to rent regulation
    54  until  such  unit  first  becomes  vacant  after  the  expiration of the
    55  restriction period at which time such unit, unless it would  be  subject
    56  to  rent regulation for reasons other than the provisions of this subdi-

        A. 7758                             7
 
     1  vision,  shall  be  deregulated,  provided,  however,  that  during  the
     2  restriction  period,  no  exemption or exclusion from any requirement of
     3  rent regulation shall apply to such dwelling units.
     4    (2)  Additional  requirements  for an eligible rental building that is
     5  not a recipient of substantial governmental assistance.
     6    (A) Not less than fifty percent of the dwelling units in such eligible
     7  rental building shall be designated as affordable rental units.
     8    (B) The owner of such eligible rental building shall  ensure  that  no
     9  affordable rental unit is held off the market for a period that is long-
    10  er than reasonably necessary.
    11    (C)  The  owner  of  such  eligible  rental  building  shall waive the
    12  collection of any major capital improvement rent increase granted by the
    13  New York state division of housing and  community  renewal  pursuant  to
    14  rent  regulation that is attributable to eligible construction for which
    15  such eligible rental building receives rehabilitation program  benefits,
    16  and shall file a declaration with the New York state division of housing
    17  and community renewal providing such waiver.
    18    (D)  An  affordable  rental  unit  shall not be rented on a temporary,
    19  transient or short-term basis. Every lease and renewal  thereof  for  an
    20  affordable  rental  unit shall be for a term of one or two years, at the
    21  option of the tenant, and shall include a notice  in  at  least  twelve-
    22  point type informing such tenant of their rights pursuant to this subdi-
    23  vision,  including  an explanation of the restrictions on rent increases
    24  that may be imposed on such affordable rental unit.
    25    (E) The local housing agency may establish by  rules  and  regulations
    26  such  requirements as the local housing agency deems necessary or appro-
    27  priate for designating  affordable  rental  units,  including,  but  not
    28  limited  to,  designating  the unit mix and distribution requirements of
    29  such affordable rental units in an eligible building.
    30    (3) The owner of such eligible rental building shall not engage in  or
    31  cause  any harassment of the tenants of such eligible rental building or
    32  unlawfully evict any such tenants during the restriction period.
    33    (4) No dwelling units within such eligible rental  building  shall  be
    34  converted to cooperative or condominium ownership during the restriction
    35  period.
    36    (5)  Any  non-compliance  of  an  eligible  rental  building  with the
    37  provisions of this paragraph shall permit the local  housing  agency  to
    38  take the following action:
    39    (A) extend the restriction period;
    40    (B)  increase  the  number of affordable rental units in such eligible
    41  rental building;
    42    (C) impose a penalty of not more than  the  product  of  one  thousand
    43  dollars  per instance of non-compliance and the number of dwelling units
    44  contained in such eligible rental building; and
    45    (D) terminate or revoke any rehabilitation program benefits in accord-
    46  ance with paragraph (m) of this subdivision.
    47    (f) Compliance with applicable law.  Any such local law  or  ordinance
    48  may  also  provide  that  rehabilitation  program  benefits shall not be
    49  allowed for any eligible building unless and until such eligible  build-
    50  ing complies with all applicable provisions of law.
    51    (g)  Implementation  of rehabilitation program benefits. Upon issuance
    52  of a certificate of eligibility  and  reasonable  cost  and  payment  of
    53  outstanding fees, the local housing agency shall be authorized to trans-
    54  mit  such  certificate  of  eligibility and reasonable cost to the local
    55  agency responsible for real property tax assessment. Upon receipt  of  a
    56  certificate of eligibility and reasonable cost, the local agency respon-

        A. 7758                             8

     1  sible for real property tax assessment shall certify the amount of taxes
     2  to  be abated pursuant to paragraph (b) of this subdivision and pursuant
     3  to such certificate of eligibility and reasonable cost provided  by  the
     4  local housing agency.
     5    (h)  Outstanding  taxes and charges.   Any such local law or ordinance
     6  shall also provide that rehabilitation program  benefits  shall  not  be
     7  allowed for an eligible building in either of the following cases:
     8    (1) there are outstanding real estate taxes or water and sewer charges
     9  or  payments  in lieu of taxes that are due and owing as of the last day
    10  of the tax period preceding the date of the receipt of  the  certificate
    11  of  eligibility  and reasonable cost by the local agency responsible for
    12  real property tax assessment; or
    13    (2) real estate taxes or water and  sewer  charges  due  at  any  time
    14  during  the  authorized term of such benefits remain unpaid for one year
    15  after the same are due and payable.
    16    (i) Additional limitations on eligibility.   Any  such  local  law  or
    17  ordinance shall also provide that:
    18    (1)  rehabilitation  program  benefits  shall  not  be allowed for any
    19  eligible building receiving tax exemption or abatement concurrently  for
    20  rehabilitation or new construction under any other provision of state or
    21  local  law  or ordinance with the exception of any eligible construction
    22  to an eligible building receiving a tax exemption or abatement under the
    23  provisions of the private housing finance law;
    24    (2) rehabilitation program benefits shall not be allowed for any  item
    25  of eligible construction in an eligible building if such eligible build-
    26  ing  is  receiving  tax exemption or abatement for the same or a similar
    27  item of eligible construction as of the December thirty-first  preceding
    28  the  date of application for a certificate of eligibility and reasonable
    29  cost for such rehabilitation program benefits;
    30    (3) where the eligible construction includes or benefits a portion  of
    31  an  eligible  building  that  is not occupied for dwelling purposes, the
    32  assessed valuation of such eligible building and the cost of the  eligi-
    33  ble  construction  shall  be  apportioned so that rehabilitation program
    34  benefits shall not be provided for eligible construction made for  other
    35  than dwelling purposes; and
    36    (4)  rehabilitation program benefits shall not be applied to abate the
    37  taxes upon the land portion of real property, which shall continue to be
    38  taxed based upon the assessed valuation of the land and  the  applicable
    39  tax rate at the time such taxes are levied.
    40    (j) Re-inspection penalty.  Any such local law or ordinance shall also
    41  provide  that  if  the  local  housing agency cannot verify the eligible
    42  construction claimed by an applicant upon the first  inspection  by  the
    43  local  housing  agency of the eligible building, such applicant shall be
    44  required to pay ten times the actual cost of any  additional  inspection
    45  needed to verify such eligible construction.
    46    (k)  Strict liability for inaccurate applications.  Any such local law
    47  or ordinance shall also provide that if the local housing agency  deter-
    48  mines  that  an application for a certificate of eligibility and reason-
    49  able cost contains a material misstatement of fact,  the  local  housing
    50  agency  may  reject such application and bar the submission of any other
    51  application pursuant to this subdivision with respect to  such  eligible
    52  building  for a period not to exceed three years. An applicant shall not
    53  be relieved from liability under this paragraph because it submitted its
    54  application under a mistaken belief of fact. Furthermore, any person  or
    55  entity  that files more than six applications containing such a material
    56  misstatement of fact within any twelve-month period shall be barred from

        A. 7758                             9
 
     1  submitting any new application for rehabilitation  program  benefits  on
     2  behalf of any eligible building for a period not to exceed five years.
     3    (l)  Investigatory  authority.   Any such local law or ordinance shall
     4  also allow the local housing agency to require such  certifications  and
     5  consents  necessary  to  access records, including other tax records, as
     6  may be deemed appropriate to enforce  the  eligibility  requirements  of
     7  this  subdivision. Any such local law or ordinance shall further provide
     8  that, for purposes of determining and certifying eligibility  for  reha-
     9  bilitation  program  benefits  and  the  reasonable cost of any eligible
    10  construction, the local housing agency shall be authorized to:
    11    (1) administer oaths to and take the testimony of any person,  includ-
    12  ing, but not limited to, the owner of such eligible building;
    13    (2)  issue  subpoenas requiring the attendance of such persons and the
    14  production of any bills, books, papers or other documents as it may deem
    15  necessary;
    16    (3) make preliminary estimates of the maximum reasonable cost of  such
    17  eligible construction;
    18    (4)  establish maximum allowable costs of specified units, fixtures or
    19  work in such eligible construction;
    20    (5) require the submission of plans and specifications of such  eligi-
    21  ble construction before the commencement thereof;
    22    (6) require physical access to inspect the eligible building; and
    23    (7)  on  an  annual  basis,  require  the submission of leases for any
    24  dwelling unit in a building granted a  certificate  of  eligibility  and
    25  reasonable cost.
    26    (m)  Termination or revocation.  Any such local law or ordinance shall
    27  provide that failure to comply with the provisions of this  subdivision,
    28  any  such  local law or ordinance, any rules and regulations promulgated
    29  thereunder, or any mutual company regulatory agreement or  mutual  rede-
    30  velopment  company  regulatory  agreement  entered  into thereunder, may
    31  result in termination or revocation of any rehabilitation program  bene-
    32  fits  retroactive to the commencement thereof. Such termination or revo-
    33  cation shall not exempt such eligible building from continued compliance
    34  with the requirements of this subdivision, such local law or  ordinance,
    35  such rules and regulations, and such mutual company regulatory agreement
    36  or mutual redevelopment company regulatory agreement.
    37    (n)  Criminal  liability for unauthorized uses.  Any such local law or
    38  ordinance shall also provide that in the event  that  any  recipient  of
    39  rehabilitation  program benefits uses any dwelling unit in such eligible
    40  building in violation of the requirements of such local law or ordinance
    41  as adopted pursuant to this subdivision and any  rules  and  regulations
    42  promulgated  pursuant  thereto,  such  recipient  shall  be guilty of an
    43  unclassified misdemeanor punishable by a fine in an amount equivalent to
    44  double the value of the gain of such recipient from such unlawful use or
    45  imprisonment for not more than ninety days, or both.
    46    (o) Private right of action.   Any  prospective,  present,  or  former
    47  tenant  of  an  eligible rental building may sue to enforce the require-
    48  ments and prohibitions of this subdivision, any such local law or  ordi-
    49  nance,  or  any  rules  and  regulations  promulgated thereunder, in the
    50  supreme court of New York.  Any such individual harmed by  reason  of  a
    51  violation  of such requirements and prohibitions may sue therefor in the
    52  supreme court of New York on behalf of himself  or  herself,  and  shall
    53  recover  threefold  the  damages  sustained  and  the  cost of the suit,
    54  including a reasonable attorney's fee. The local housing agency may  use
    55  any  court decision under this paragraph that is adverse to the owner of
    56  an eligible building  as  the  basis  for  further  enforcement  action.

        A. 7758                            10
 
     1  Notwithstanding  any other provision of law, an action by a tenant of an
     2  eligible rental building under this paragraph shall be commenced  within
     3  six years from the date of the latest violation.
     4    (p)  Appointment of receiver. In addition to the remedies for non-com-
     5  pliance provided for in subparagraph  five  of  paragraph  (e)  of  this
     6  subdivision,  any  such local law or ordinance may also provide that the
     7  local housing agency may make  application  for  the  appointment  of  a
     8  receiver  in  accordance with the procedures contained in such local law
     9  or ordinance. Any receiver appointed pursuant to this paragraph shall be
    10  authorized, in addition to any other powers conferred by law, to  effect
    11  compliance  with  the  provisions of this subdivision, such local law or
    12  ordinance, and rules and regulations of the local  housing  agency.  Any
    13  expenditures  incurred  by  the receiver to effect such compliance shall
    14  constitute a debt of the owner and a lien upon the  property,  and  upon
    15  the  rents  and  income  thereof,  in  accordance  with  the  procedures
    16  contained in such local law or ordinance. The local  housing  agency  in
    17  its  discretion  may  provide  funds to be expended by the receiver, and
    18  such funds shall constitute a debt recoverable from the owner in accord-
    19  ance with applicable local laws or ordinances.
    20    (q) Authority of city to limit local law.   Where  a  city  enacts  or
    21  amends  a  local law or ordinance under this subdivision, such local law
    22  or ordinance may restrict, limit or condition the eligibility, scope  or
    23  amount  of  rehabilitation program benefits under the local law or ordi-
    24  nance in any manner, provided that the local law or  ordinance  may  not
    25  grant  rehabilitation  program  benefits  beyond  those provided in this
    26  subdivision.
    27    § 2. This act shall take effect immediately.
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