Alters tax exemption programs for the development of new and affordable housing; defines "initial construction period" and "extended construction period"; makes related changes.
STATE OF NEW YORK
________________________________________________________________________
4794
2025-2026 Regular Sessions
IN SENATE
February 12, 2025
___________
Introduced by Sens. SANDERS, PARKER -- read twice and ordered printed,
and when printed to be committed to the Committee on Housing,
Construction and Community Development
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 § 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, subpara-
15 graph (i), clause (A) of subparagraph (ii) and clause (A) of subpara-
16 graph (iii) as amended by chapter 4 of the laws of 2013, clause (E) of
17 subparagraph (iii) as added by chapter 618 of the laws of 2007, subpara-
18 graph (iv) as added by chapter 832 of the laws of 1992, clause (A) of
19 subparagraph (iv) as amended by section 63-a of part A of chapter 20 of
20 the laws of 2015, 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09609-01-5
S. 4794 2
1 local purposes, other than assessments for local improvements, for the
2 tax year or years immediately following taxable status dates occurring
3 subsequent to the commencement and prior to the completion of the
4 initial construction period, but not to exceed three such tax years, and
5 shall continue to be exempt from such taxation in tax years immediately
6 following the taxable status date first occurring after the expiration
7 of the exemption herein conferred during the initial construction [so
8 long as used at the completion of construction for dwelling purposes]
9 period for a period not to exceed ten years in the aggregate after the
10 taxable status date immediately following the completion [thereof] of
11 the initial construction period and during the extended construction
12 period if such period is needed, as follows:
13 [(A)] a. except as otherwise provided herein there shall be full
14 exemption from taxation during the [period of construction or the period
15 of three years immediately following commencement of construction,
16 whichever expires sooner] initial construction period, and for two years
17 following such period;
18 [(B)] b. followed by two years of exemption from eighty [per cent]
19 percent of such taxation;
20 [(C)] c. followed by two years of exemption from sixty [per cent]
21 percent of such taxation;
22 [(D)] d. followed by two years of exemption from forty [per cent]
23 percent of such taxation;
24 [(E)] e. followed by two years of exemption from twenty [per cent]
25 percent of such taxation;
26 (B) Upon the completion of the initial construction period or extended
27 construction period, if needed, the new multiple dwelling must be used
28 for dwelling purposes.
29 The following table shall illustrate the computation of the tax
30 exemption:
31 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
32 Exemption
33 During Initial Construction 100%
34 Period (maximum three years)
35 Following completion of [work] the initial
36 construction 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-
53 ly following taxable status dates occurring subsequent to the commence-
S. 4794 3
1 ment and prior to the completion of the initial construction period, but
2 not to exceed three such tax years, and shall continue to be exempt from
3 such taxation in tax years immediately following the taxable status date
4 first occurring after the expiration of the exemption herein conferred
5 during [such] the initial construction [so long as used at the
6 completion of construction for dwelling purposes] period, and during the
7 extended construction period if such period is needed, for a period not
8 to exceed fifteen years in the aggregate, as follows:
9 a. except as otherwise provided herein there shall be full exemption
10 from taxation during the period of construction or the [period of three
11 years immediately following commencement of construction, whichever
12 expires sooner] initial construction period, and for eleven years
13 following such period;
14 b. followed by one year of exemption from eighty percent of such taxa-
15 tion;
16 c. followed by one year of exemption from sixty percent of such taxa-
17 tion;
18 d. followed by one year of exemption from forty percent of such taxa-
19 tion;
20 e. followed by one year of exemption from twenty percent of such taxa-
21 tion.
22 (B) The benefits of this subparagraph shall not be available in areas
23 made ineligible for the benefits of this section by a local law enacted
24 pursuant to paragraph (i) of this subdivision [two of this section],
25 notwithstanding any exceptions to ineligibility contained in such local
26 law for certain types of projects in such areas.
27 (C) Unless excluded by local law, in the city of New York the benefits
28 of this subparagraph shall be available in the borough of Manhattan for
29 tax lots now existing or hereafter created south of or adjacent to
30 either side of one hundred tenth street only if:
31 a. the construction is carried out with the substantial assistance of
32 grants, loans or subsidies from any federal, state or local agency or
33 instrumentality, or
34 b. the local housing agency has imposed a requirement or has certified
35 that twenty percent of the units be affordable to families of low and
36 moderate income.
37 (D) Upon the completion of the initial construction period or extended
38 construction period, if needed, the new multiple dwelling must be used
39 for dwelling purposes.
40 The following table shall illustrate the computation of the exemption:
41 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
42 Exemption
43 During Initial Construction 100%
44 Period (maximum three years)
45 Following completion of [work] the initial construction
46 period
47 Year:
48 1 through 11 100%
49 12 80
50 13 60
51 14 40
52 15 20
S. 4794 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. §§180 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.
S. 4794 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 Construction Period 100%
9 (maximum three years)
10 Following completion of [work] the
11 initial construction period
12 Year:
13 1 through 21 100%
14 22 80
15 23 60
16 24 40
17 25 20
18 [(E)] (F) A new multiple dwelling that is situated in (1) a neighbor-
19 hood preservation program area as determined by the department of hous-
20 ing preservation and development as of June first, nineteen hundred
21 eighty-five, (2) a neighborhood preservation area as determined by the
22 New York city planning commission as of June first, nineteen hundred
23 eighty-five, (3) an area that was eligible for mortgage insurance
24 provided by the rehabilitation mortgage insurance corporation as of May
25 first, nineteen hundred ninety-two, or (4) an area receiving funding for
26 a neighborhood preservation project pursuant to the neighborhood rein-
27 vestment corporation act (42 U.S.C. §§ 8101 et seq.) as of June first,
28 nineteen hundred eighty-five, shall not be eligible for the benefits
29 available pursuant to this subparagraph unless it complies with the
30 provisions of subdivision seven of this section.
31 (iv) (A) Unless excluded by local law, in the city of New York, the
32 benefits of this subparagraph shall be available in the borough of
33 Manhattan for new multiple dwellings on tax lots now existing or here-
34 after created south of or adjacent to either side of one hundred tenth
35 street that commence construction after July first, nineteen hundred
36 ninety-two and on or before December thirty-first, two thousand fifteen
37 provided, however, that such a multiple dwelling receives its first
38 temporary or permanent certificate of occupancy covering all residential
39 areas on or before December thirty-first, two thousand nineteen, and
40 solely for purposes of determining whether this clause applies and
41 notwithstanding any local law to the contrary, "commence" shall mean the
42 date upon which excavation and construction of initial footings and
43 foundations lawfully begins in good faith or, for an eligible conver-
44 sion, the date upon which the actual construction of the conversion,
45 alteration or improvement of the pre-existing building or structure
46 lawfully begins in good faith, only if:
47 a. the construction is carried out with the substantial assistance of
48 grants, loans or subsidies from any federal, state or local agency or
49 instrumentality, or
50 b. the local housing agency has imposed a requirement or has certified
51 that twenty percent of the units are affordable to families of low and
52 moderate income.
S. 4794 6
1 (B) Such new multiple dwellings, except hotels, shall be exempt from
2 taxation for local purposes, other than assessments for local improve-
3 ments for the tax year or years immediately following taxable status
4 dates occurring subsequent to the commencement and prior to the
5 completion of the initial construction period, but not to exceed three
6 such tax years, and shall continue to be exempt from such taxation in
7 tax years immediately following the taxable status dates first occurring
8 after the expiration of the exemption herein conferred during [such] the
9 initial construction [so long as used at the completion of construction
10 for dwelling purposes] period, and during the extended construction
11 period if such period is needed, for a period not to exceed twenty years
12 in the aggregate, as follows:
13 a. except as otherwise provided herein, there shall be full exemption
14 from taxation during the [period of construction or the period of three
15 years immediately following commencement of construction, whichever
16 expires sooner] initial construction period, and for twelve years
17 following such period;
18 b. followed by two years of exemption from eighty percent of such
19 taxation;
20 c. followed by two years of exemption from sixty percent of such taxa-
21 tion;
22 d. followed by two years of exemption from forty percent of such taxa-
23 tion;
24 e. followed by two years of exemption from twenty percent of such
25 taxation.
26 (C) Upon the completion of the initial construction period or extended
27 construction period, if needed, the new multiple dwelling must be used
28 for dwelling purposes.
29 The following table shall illustrate the computation of the exemption:
30 CONSTRUCTION OF CERTAIN
31 MULTIPLE DWELLINGS
32 During [construction] Initial Construction
33 Period (maximum three years) Exemption 100%
34 Following completion of [work year] the initial
35 construction period:
36 Year
37 1 through 12 100%
38 13-14 80%
39 15-16 60%
40 17-18 40%
41 19-20 20%
42 § 3. Paragraph (g) of subdivision 2 of section 421-a of the real prop-
43 erty tax law, as amended by chapter 995 of the laws of 1981, is amended
44 to read as follows:
45 (g) [For] Notwithstanding anything to the contrary contained in any
46 other state or local law, for purposes of this section, construction
47 shall be deemed "commenced" [when excavation or alteration has begun in
48 good faith on the basis of approved construction plans] upon the date
49 that, pursuant to any permit approved by a department of buildings: (i)
50 a new metal or concrete structure that shall perform a load bearing
51 function is installed as part of a foundation; (ii) at least one fully
52 driven pile or caisson is installed; or (iii) the actual construction,
53 alteration, or improvement of a pre-existing building or structure
S. 4794 7
1 begins in a project that includes new residential construction and the
2 concurrent conversion, alteration or improvement of a pre-existing
3 building or structure. Provided, however, that with respect to subpara-
4 graphs (i), (ii) and (iii) of this paragraph, the construction of such
5 multiple dwelling is completed without undue delay.
6 § 4. The opening paragraph and subparagraph (iv) of paragraph a of
7 subdivision 3 of section 421-a of the real property tax law, the opening
8 paragraph as amended by section 63-g of part A of chapter 20 of the laws
9 of 2015 and subparagraph (iv) as amended by chapter 703 of the laws of
10 1976 and such section as renumbered by chapter 110 of the laws of 1977,
11 are amended to read as follows:
12 [Application forms for exemption under this section shall be filed
13 with the assessors between February first and March fifteenth and, based
14 on the certification of the local housing agency as herein provided, the
15 assessors shall certify to the collecting officer the amount of taxes to
16 be abated.] If there be in a city of one million population or more a
17 department of housing preservation and development, the term "housing
18 agency" shall mean only such department of housing preservation and
19 development. [No such application shall be accepted by the assessors
20 unless accompanied by a certificate of the local housing agency certify-
21 ing the applicant's eligibility pursuant to subdivisions two and four of
22 this section.] No [such] certification of eligibility for benefits
23 pursuant to this section shall be issued by the local housing agency
24 until such agency determines the initial adjusted monthly rent to be
25 paid by tenants residing in rental dwelling units contained within the
26 multiple dwelling and the comparative adjusted monthly rent that would
27 have to be paid by such tenants if no tax exemption were applicable as
28 provided by this section. The initial adjusted monthly rent will be
29 certified by the local housing agency as the first rent for the subject
30 dwelling units. A copy of such certification with respect to such units
31 shall be attached by the applicant to the first effective lease or occu-
32 pancy agreement. The initial adjusted monthly rent shall reflect the
33 full tax exemption benefits as approved by the agency.
34 (iv) The adjusted monthly rent per room per month shall be multiplied
35 by the room count of each rental dwelling unit to provide the initial
36 adjusted monthly rent for such dwelling unit. The agency may allow
37 adjustments in the initial adjusted monthly rent for any particular
38 dwelling units provided that the total of the initial adjusted monthly
39 rents for all of the rental dwelling units in a multiple dwelling shall
40 not exceed the total expenses of such multiple dwelling.
41 The agency shall determine the estimated comparative adjusted monthly
42 rent that would have to be paid if no tax exemption were applicable as
43 provided by this section by adding to the adjusted monthly rent for each
44 dwelling unit as hereinabove computed an amount equal to (a) the differ-
45 ence between the projected real property taxes which would be levied on
46 the multiple dwelling and the land on which it is situated at the time
47 of estimated initial occupancy if no tax abatement were applicable as
48 provided by this section and the projected real property taxes hereina-
49 bove utilized in connection with the computation of total expenses; (b)
50 divided by the room count of the building as per this section; and (c)
51 multiplied by the applicants approved room count of each such dwelling
52 unit.
53 The local housing agency may promulgate rules and regulations to carry
54 out the provisions of this section, not inconsistent with the provisions
55 hereof, [and may require a reasonable filing fee in an amount provided
56 by such rules and regulations] including, but not limited to, rules and
S. 4794 8
1 regulations relating to the filing fee authorized pursuant to paragraph
2 b of subdivision four of this section.
3 § 5. Paragraph b of subdivision 4 of section 421-a of the real proper-
4 ty tax law, as added by chapter 744 of the laws of 2004, is amended to
5 read as follows:
6 b. The local housing agency [may] shall require a filing fee not to
7 exceed the greater of (i) four-tenths of one percent of the total
8 project cost, or (ii) if the building will be owned as a cooperative or
9 condominium, four-tenths of one percent of the total project cost or
10 four-tenths of one percent of the total project sell-out price stated in
11 the last amendment to the offering plan accepted for filing by the
12 attorney general of the state, at the option of the applicant. Such
13 total project cost or total project sell-out price shall be determined
14 pursuant to rules promulgated by the local housing agency. Notwithstand-
15 ing the foregoing, the local housing agency may promulgate rules impos-
16 ing an additional fee if an application, or any part thereof, or
17 submission in connection therewith, is defective and such defect delays
18 the processing of such application or causes the local housing agency to
19 expend additional resources in the processing of such application.
20 § 6. Subparagraph (i) of paragraph (a) of subdivision 6 of section
21 421-a of the real property tax law, as added by chapter 110 of the laws
22 of 2005, is amended to read as follows:
23 (i) "Covered project." (A) A new building located within the Green-
24 point - Williamsburg waterfront exclusion area, (B) two or more build-
25 ings which are part of one contiguous development entirely located with-
26 in the Greenpoint - Williamsburg waterfront exclusion area, (C) two or
27 more buildings which are located within the Greenpoint - Williamsburg
28 waterfront exclusion area and are part of a single development parcel
29 specifically identified in section [62-831] 62-931 of the local zoning
30 resolution, or (D) where so authorized in writing by the local housing
31 agency, one or more buildings located within the Greenpoint - Williams-
32 burg waterfront exclusion area and one or more buildings located outside
33 the Greenpoint - Williamsburg waterfront exclusion area but within
34 Community District Number One in the borough of Brooklyn. The cumulative
35 number of affordable units located outside the Greenpoint - Williamsburg
36 waterfront exclusion area in all covered projects described in clause
37 (D) of this subparagraph shall not exceed two hundred. A building
38 located outside the Greenpoint - Williamsburg waterfront exclusion area
39 which is part of a covered project described in clause (D) of this
40 subparagraph shall not contain any affordable units with respect to
41 which an application pending before a governmental entity on [the effec-
42 tive date of this subdivision] June twenty-first, two thousand five or a
43 written agreement in effect on [the effective date of this subdivision]
44 June twenty-first, two thousand five provided for the development of
45 such affordable units.
46 § 7. Subdivision (c) of section 11-245 of the administrative code of
47 the city of New York, as amended by local law number 42 of the city of
48 New York for the year 2003, is amended to read as follows:
49 (c) No benefits under section four hundred twenty-one-a of the real
50 property tax law shall be conferred for any construction commenced on or
51 after November twenty-ninth, nineteen hundred eighty-five of any multi-
52 ple dwelling, or portion thereof, which is located within any district
53 in the county of New York where a maximum base floor area ratio, as that
54 term is defined in the zoning resolution, of fifteen or greater was
55 permitted as of right by provisions of such resolution in effect on
56 April fourteenth, nineteen hundred eighty-two; provided, however, that
S. 4794 9
1 this limitation on benefits shall not apply to any such construction
2 commenced on or after October first, nineteen hundred ninety-three and
3 before December [thirty-first] twenty-eighth, two thousand [seven] twen-
4 ty-five.
5 § 8. Subdivision 8 of section 421-a of the real property tax law, as
6 amended by section 63-m of part A of chapter 20 of the laws of 2015, 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) "Applicant" means an applicant for benefits pursuant to this
11 section, any successor to such applicant, or any employer of building
12 service employees for such applicant, including, but not limited to, a
13 property management company or contractor.
14 (ii) "Building service employee" means any person who is regularly
15 employed at a building who performs work in connection with the care or
16 maintenance of such building. "Building service employee" includes, but
17 is not limited to, [watchman,] guard, [doorman] door attendant, building
18 cleaner, porter, [handyman] handyperson, janitor, gardener, groundskeep-
19 er, elevator operator and starter, and window cleaner, but shall not
20 include persons regularly scheduled to work fewer than eight hours per
21 week in the building.
22 (iii) "Construction employee" means a laborer, worker or mechanic in
23 the employ of the contractor, subcontractor or other person doing or
24 contracting to do the whole or a portion of the construction of a new
25 multiple dwelling.
26 (iv) "Fiscal officer" means the comptroller or other analogous officer
27 in a city having a population of one million or more.
28 (b) All building service employees employed by the applicant in a
29 building whose construction commenced on or after December twenty-
30 eighth, two thousand seven shall receive the applicable prevailing wage
31 for the duration of benefits pursuant to this section. Notwithstanding
32 any general, special or local law, or judicial decision to the contrary,
33 for the purposes of this section such construction which may involve the
34 employment of laborers, workers or mechanics, except as provided in
35 paragraph (d) of this subdivision, shall be deemed public work for the
36 purposes of article eight of the labor law and all contracts and subcon-
37 tracts which may involve the employment of laborers, workers or mechan-
38 ics shall be enforceable under article eight of the labor law.
39 (c) The fiscal officer shall have the power to enforce the provisions
40 of this subdivision. In enforcing such provisions, the fiscal officer
41 shall have the power:
42 (i) to investigate or cause an investigation to be made to determine
43 the prevailing wages for building service employees and construction
44 employees; in making such investigation, the fiscal officer may utilize
45 wage and fringe benefit data from various sources, including, but not
46 limited to, data and determinations of federal, state or other govern-
47 mental agencies;
48 (ii) to institute and conduct inspections at the site of the work or
49 elsewhere;
50 (iii) to examine the books, documents and records pertaining to the
51 wages paid to, and the hours of work performed by, building service
52 employees;
53 (iv) to hold hearings and, in connection therewith, to issue subpoe-
54 nas, administer oaths and examine witnesses; the enforcement of a
55 subpoena issued under this subdivision shall be regulated by the civil
56 practice law and rules;
S. 4794 10
1 (v) to make a classification by craft, trade or other generally recog-
2 nized occupational category of the building service employees and
3 construction employees and to determine whether such work has been
4 performed by the building service employees and construction employees
5 in such classification;
6 (vi) to require the applicant to file with the fiscal officer a record
7 of the wages actually paid by such applicant to the building service
8 employees or construction employees and of their hours of work;
9 (vii) to delegate any of the foregoing powers to [his or her] such
10 fiscal officer's deputy or other authorized representative; and
11 (viii) to promulgate rules as [he or she] such fiscal officer shall
12 consider necessary for the proper execution of the duties, responsibil-
13 ities and powers conferred upon [him or her] such fiscal officer by the
14 provisions of this paragraph.
15 (d) If the fiscal officer finds that the applicant has failed to
16 comply with the provisions of this subdivision, [he or she] such fiscal
17 officer shall present evidence of such noncompliance to the local hous-
18 ing agency.
19 (e) [Paragraph] For building service employees, paragraph (b) of this
20 subdivision shall not be applicable to:
21 (i) projects containing less than fifty dwelling units; or
22 (ii) buildings where the local housing agency certifies that at
23 initial occupancy at least fifty percent of the dwelling units are
24 affordable to individuals or families with a gross household income at
25 or below one hundred twenty-five percent of the area median income and
26 that any such units which are located in rental buildings will be
27 subject to restrictions to insure that they will remain affordable for
28 the entire period during which they receive benefits under this section.
29 (f) For construction employees, paragraph (b) of this subdivision
30 shall not be applicable to:
31 (i) projects containing less than eighty dwelling units; or
32 (ii) buildings where the local housing agency certifies that at
33 initial occupancy at least fifty percent of the dwelling units are
34 affordable to individuals or families with a gross household income at
35 or below one hundred twenty-five percent of the area median income and
36 that any such units which are located in rental buildings will be
37 subject to restrictions to insure that they will remain affordable for
38 the entire period during which they receive benefits under this section.
39 (g) The local housing agency shall prescribe appropriate sanctions for
40 failure to comply with the provisions of this subdivision.
41 [(g)] (h) Solely for purposes of paragraph (b) of this subdivision,
42 construction shall be deemed to have commenced [when excavation or
43 alteration has begun in good faith on the basis of approved construction
44 plans] upon the date that, pursuant to any permit approved by a depart-
45 ment of buildings, (i) a new metal or concrete structure that shall
46 perform a load bearing function is installed as part of a foundation,
47 (ii) at least one fully driven pile or caisson is installed, or (iii)
48 the actual construction, alteration, or improvement of a pre-existing
49 building or structure begins in a project that includes new residential
50 construction and the concurrent conversion, alteration or improvement of
51 a pre-existing building or structure. Provided, however, that with
52 respect to subparagraphs (i), (ii) and (iii) of this paragraph, the
53 construction of such multiple dwelling is completed without undue delay.
54 [(h)] (i) The eligibility criteria for benefits contained in this
55 subdivision shall be in addition to those contained in any other law or
56 regulation.
S. 4794 11
1 § 9. The New York city charter is amended by adding a new section 1808
2 to read as follows:
3 § 1808. Additional floor area. Any program that allows for additional
4 floor area in exchange for the creation of affordable housing shall
5 require that thirty percent of any additional floor area generated by
6 the program be used to provide affordable housing.
7 § 10. The real property tax law is amended by adding a new section
8 421-r to read as follows:
9 § 421-r. Exemption of certain private homes from local taxation. 1.
10 For purposes of this section, the following terms shall have the follow-
11 ing meanings:
12 (a) "Commence construction" shall mean that the agency or department
13 of the city having jurisdiction has issued a permit for construction of
14 a private home and such work has begun in good faith in accordance with
15 such permit.
16 (b) "Complete construction" shall mean that the agency or department
17 of the city having jurisdiction has issued a temporary or permanent
18 certificate of occupancy for all residential areas of the private home.
19 (c) "Eligible project" shall mean a newly constructed private home,
20 including both land and improvements, to be occupied as a residence for
21 the first time, which commences construction on or after July first, two
22 thousand twenty and on or before December thirty-first, two thousand
23 twenty-six and completes construction no later than December thirty-
24 first, two thousand twenty-eight, and which is designed and occupied
25 exclusively for residential purposes.
26 (d) "Exemption commencement date" shall mean the first taxable status
27 date after the later to occur of the completion of such construction or
28 the sale to the initial purchaser or, in the case of a private home in a
29 condominium form of ownership, the first taxable status date after the
30 later to occur of the completion of such construction or the sale to the
31 first initial purchaser of a condominium dwelling unit in such private
32 home.
33 (e) "Initial purchaser" shall mean the first purchaser of a newly
34 constructed private home or, in the case of a private home in a condo-
35 minium form of ownership, the first purchaser of each dwelling unit in
36 such newly constructed private home.
37 (f) "Local housing agency" shall mean an "agency" as defined pursuant
38 to section six hundred ninety-two of the general municipal law.
39 (g) "Purchase price" shall mean the actual purchase price to be paid
40 for the private home by the initial purchaser.
41 (h) "Maximum purchase price" shall mean the purchase price of the
42 private home which, if exceeded, will make any exemption hereunder
43 unavailable.
44 (i) "Maximum exemption amount" shall mean the portion of the purchase
45 price to be exempted from taxation of: (i) six hundred seventy-one thou-
46 sand dollars in the case of a private home containing one dwelling unit,
47 (ii) seven hundred fifty-five thousand five hundred forty dollars in the
48 case of a private home containing two dwelling units, (iii) nine hundred
49 fourteen thousand seven hundred fifty dollars in the case of a private
50 home containing three dwelling units, and (iv) four hundred thousand
51 dollars for each individual condominium unit in the case of condominium
52 form of ownership in a private home. The maximum purchase prices
53 provided in subparagraphs (i), (ii), (iii) and (iv) of this paragraph
54 shall be the limit for the application of any exemption from taxation
55 under this section. No exemption shall be available where the maximum
56 purchase price exemption is in excess of nine hundred fifty thousand
S. 4794 12
1 dollars for a one, two, or three family private home or four hundred
2 thousand dollars for an individual condominium unit.
3 (j) "Multiple dwelling" shall mean a multiple dwelling within the
4 meaning of section four of the multiple dwelling law.
5 (k) "Private home" shall mean an owner occupied private or multiple
6 dwelling containing not more than three dwelling units, as indicated on
7 the certificate of occupancy for such structure.
8 2. (a) Within a city having a population of one million or more, an
9 eligible project shall be exempt from all local and municipal taxes,
10 other than assessments for local improvements, during the tax year or
11 years next following the exemption commencement date as follows: with
12 respect to private homes containing less than four dwelling units, two
13 years of exemption from all such taxes; followed by one year of
14 exemption from seventy-five percent of such taxes; followed by one year
15 of exemption from sixty-two and one-half percent of such taxes; followed
16 by one year of exemption from fifty percent of such taxes; followed by
17 one year of exemption from thirty-seven and one-half percent of such
18 taxes; followed by one year of exemption from twenty-five percent of
19 such taxes; and followed by one year of exemption from twelve and one-
20 half percent of such taxes.
21 (b) Notwithstanding the provisions of paragraph (a) of this subdivi-
22 sion, exemption from local and municipal taxes under this section shall
23 not be available to the tax lot (land and improvements) upon which a
24 private home is constructed if any portion of such tax lot (land and
25 improvements): (i) is exempt from local and municipal taxes under any
26 other law; or (ii) contains a private home that exceeds the maximum
27 purchase price or an individual condominium unit that exceeds a purchase
28 price of four hundred thousand dollars.
29 (c) Notwithstanding the provisions of paragraph (a) of this subdivi-
30 sion, the tax lot (land and improvements) upon which the private home is
31 constructed shall at all times be subject to local and municipal taxes
32 in an amount not less than the amount of local and municipal taxes that
33 would be payable thereon based upon the assessed valuation of the land
34 appearing on the assessment roll in the first year after completion of
35 construction.
36 3. (a) Based on the certification of the local housing agency pursuant
37 to this section certifying eligibility for exemption pursuant to this
38 section, the department of finance of the city of New York shall imple-
39 ment the amount of exemption from local and municipal taxes.
40 (b) The local housing agency may promulgate rules and regulations to
41 carry out the provisions of this section and may require payment of a
42 non-refundable filing fee in the amount of two hundred dollars per
43 dwelling unit for each application for tax exemption pursuant to this
44 section.
45 (c) Upon a finding by the local housing agency or by another agency
46 designated by such local housing agency that a private home is not being
47 used for residential purposes, is the subject of a violation for an
48 illegal occupancy, or not owner occupied, exemption from taxation under
49 this section shall be revoked and shall terminate prospectively;
50 provided, however, that in the case of an illegal occupancy, the owner
51 shall repay all taxes, with interest, from which such private home was
52 exempted and such amount, if unpaid, shall become a tax lien against the
53 property.
54 § 11. This act shall take effect immediately.
