STATE OF NEW YORK
________________________________________________________________________
10252--C
IN ASSEMBLY
May 16, 2012
___________
Introduced by M. of A. V. LOPEZ, LENTOL, MILLMAN -- read once and
referred to the Committee on Housing -- reported and referred to the
Committee on Codes -- reported and referred to the Committee on Rules
-- Rules Committee discharged, bill amended, ordered reprinted as
amended and recommitted to the Committee on Rules -- again reported
from said committee with amendments, ordered reprinted as amended and
recommitted to said committee -- again reported from said committee
with amendments, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the multiple dwelling law and the real property tax law,
in relation to interim multiple dwellings in a city with a population
of one million or more
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 5 of section 281 of the multiple dwelling law,
2 as amended by chapter 139 of the laws of 2011, is amended to read as
3 follows:
4 5. Notwithstanding the provisions of paragraphs (i), (iii) and (iv) of
5 subdivision two of this section, but subject to paragraphs (i) and (ii)
6 of subdivision one of this section and paragraph (ii) of subdivision two
7 of this section, the term "interim multiple dwelling" shall include
8 buildings, structures or portions thereof that are located in a city of
9 more than one million persons which were occupied for residential
10 purposes as the residence or home of any three or more families living
11 independently from one another for a period of twelve consecutive months
12 during the period commencing January first, two thousand eight, and
13 ending December thirty-first, two thousand nine, provided that the unit:
14 is not located in a basement or cellar and has at least one entrance
15 that does not require passage through another residential unit to obtain
16 access to the unit, has at least one window opening onto a street or a
17 lawful yard or court as defined in the zoning resolution for such muni-
18 cipality, and is at least [five hundred fifty] four hundred square feet
19 in area. The term "interim multiple dwelling" as used in this subdivi-
20 sion shall not include (i) any building in an industrial business zone
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15755-08-2
A. 10252--C 2
1 established pursuant to chapter six-D of title twenty-two of the admin-
2 istrative code of the city of New York except that a building in the
3 Williamsburg/Greenpoint or North Brooklyn industrial business zones and
4 a building located in that portion of the Long Island city industrial
5 business zone that has frontage on either side of forty-seventh avenue
6 or is located north of forty-seventh avenue and south of Skillman avenue
7 or in that portion of the Long Island city industrial business zone that
8 is located north of forty-fourth drive, south of Queens plaza north, and
9 west of twenty-third street may be included in the term "interim multi-
10 ple dwelling," or (ii) units in any building, other than a building that
11 is already defined as an "interim multiple dwelling" pursuant to subdi-
12 vision one, two, three or four of this section, that, at the time this
13 subdivision shall take effect and continuing at the time of the
14 submission of an application for coverage by any party, also contains a
15 use actively and currently pursued, which use is set forth in use groups
16 fifteen through eighteen, as described in the zoning resolution of such
17 municipality in effect on June twenty-first, two thousand ten, and which
18 the loft board has determined in rules and regulation is inherently
19 incompatible with residential use in the same building, provided that if
20 a building does not contain such active uses at the time this subdivi-
21 sion takes effect, no subsequent use by the owner of the building shall
22 eliminate the protections of this section for any residential occupants
23 in the building already qualified for such protections. The term "inter-
24 im multiple dwelling," as used in this subdivision shall also include
25 buildings, structures or portions thereof that are located north of West
26 24th Street and south of West 27th Street and west of tenth avenue and
27 east of eleventh avenue in a city of more than one million persons which
28 were occupied for residential purposes as the residence or home of any
29 two or more families living independently from one another for a period
30 of twelve consecutive months during the period commencing January first,
31 two thousand eight, and ending December thirty-first, two thousand nine
32 and subject to all the conditions and limitations of this subdivision
33 other than the number of units in the building. A reduction in the
34 number of occupied residential units in a building after meeting the
35 aforementioned twelve consecutive month requirement shall not eliminate
36 the protections of this section for any remaining residential occupants
37 qualified for such protections. Non-residential space in a building as
38 of the effective date of this subdivision shall be offered for residen-
39 tial use only after the obtaining of a residential certificate of occu-
40 pancy for such space and such space shall be exempt from this article,
41 even if a portion of such building may be an interim multiple dwelling.
42 § 2. Subdivision 2 of section 286 of the multiple dwelling law, as
43 amended by chapter 414 of the laws of 1999, subparagraphs (A) and (B) of
44 paragraph (ii) and paragraph (iii) as amended by chapter 135 of the laws
45 of 2010, is amended to read as follows:
46 2. (i) Prior to compliance with safety and fire protection standards
47 of article seven-B of this chapter, residential occupants qualified for
48 protection pursuant to this article shall be entitled to continued occu-
49 pancy, provided that the unit is their primary residence, and shall pay
50 the same rent, including escalations, specified in their lease or rental
51 agreement to the extent to which such lease or rental agreement remains
52 in effect or, in the absence of a lease or rental agreement, the same
53 rent most recently paid and accepted by the owner; if there is no lease
54 or other rental agreement in effect, rent adjustments prior to article
55 seven-B compliance shall be in conformity with guidelines to be set by
A. 10252--C 3
1 the loft board for such residential occupants within six months from the
2 effective date of this article.
3 (ii) In addition to any rent adjustment pursuant to paragraph (i) of
4 this subdivision, on or after June twenty-first, nineteen hundred nine-
5 ty-two, the rent for residential units in interim multiple dwellings
6 that are not yet in compliance with the requirements of subdivision one
7 of section two hundred eighty-four of this article shall be adjusted as
8 follows:
9 (A) Upon the owners' filing of an alteration application, as required
10 by paragraph (ii), (iii), (iv), (v), or (vi) of subdivision one of
11 section two hundred eighty-four of this article, an adjustment equal to
12 [six] three percent of the rent in effect at the time the owner files
13 the alteration application.
14 (B) Upon obtaining an alteration permit, as required by paragraph
15 (ii), (iii), (iv), (v), or (vi) of subdivision one of section two
16 hundred eighty-four of this article, an adjustment equal to [eight]
17 three percent of the rent in effect at the time the owner obtains the
18 alteration permit.
19 (C) Upon achieving compliance with the standards of safety and fire
20 protection set forth in article seven-B of this chapter for the residen-
21 tial portions of the building, an adjustment equal to [six] four percent
22 of the rent in effect at the time the owner achieves such compliance.
23 (D) Owners who filed an alteration application prior to the effective
24 date of this subparagraph shall be entitled to a prospective adjustment
25 equal to six percent of the rent on the effective date of this subpara-
26 graph.
27 (E) Owners who obtained an alteration permit prior to June twenty-
28 first, nineteen hundred ninety-two shall be entitled to a prospective
29 adjustment equal to fourteen percent of the rent on June twenty-first,
30 nineteen hundred ninety-two.
31 (F) Owners who achieved compliance with the standards of safety and
32 fire protection set forth in article seven-B of this chapter for the
33 residential portions of the building prior to June twenty-first, nine-
34 teen hundred ninety-two shall be entitled to a prospective adjustment
35 equal to twenty percent of the rent on June twenty-first, nineteen
36 hundred ninety-two.
37 (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
38 sion shall not apply to units which were rented at market value after
39 June twenty-first, nineteen hundred eighty-two and prior to June twen-
40 ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
41 units made subject to this article by subdivision five of section two
42 hundred eighty-one of this article.
43 (iv) Payment of any rent adjustments pursuant to paragraph (ii) of
44 this subdivision shall commence the month immediately following the
45 month in which the act entitling the owner to the adjustment occurred.
46 § 3. The provisions of subdivision (c) of section 11-245 of the admin-
47 istrative code of the city of New York shall not be applicable to any
48 multiple dwelling located on lots numbered 13 and 14 of Manhattan block
49 numbered 51, lots numbered 17, 18, and 21 of Manhattan block number 90,
50 lots numbered 7, 8, 10, 11, 57 and 111 of Manhattan block numbered 1010,
51 and lots numbered 33, 34 and 35 of Manhattan block numbered 1259 as such
52 lots and blocks are numbered as of the date this act shall have become
53 law, provided that the construction of such multiple dwellings on those
54 lots commences on or after January 1, 2007, and on or before June 21,
55 2017, and provided that for all such multiple dwellings the department
56 of housing preservation and development of New York City shall impose a
A. 10252--C 4
1 requirement and certify that twenty percent of the units on site are
2 affordable to households of low and moderate income pursuant to subdivi-
3 sion 7 of section 421-a of the real property tax law. The provisions of
4 subdivision (c) of section 11-245 of the administrative code of the city
5 of New York shall not be applicable to any multiple dwelling that is
6 located on lot 10 of Manhattan block number 123, as such lot and block
7 are numbered as of the date this act shall have become law, provided
8 that construction of such multiple dwelling commenced on or after Janu-
9 ary 1, 2007, and on or before June 21, 2012, and provided further that
10 the individual or agent thereof seeking benefits pursuant to section
11 421-a of the real property tax law enters into and fulfills the require-
12 ments of a memorandum of understanding with the city of New York Depart-
13 ment of Housing Preservation and Development to fund in an amount not
14 less than $9 million the construction of affordable rental housing with-
15 in the City of New York, provided, however, that such amount required
16 shall be reduced by the value of negotiable certificates that the indi-
17 vidual or agent thereof seeking benefits purchased, pursuant to section
18 6-08 of title 28 of the rules of the city of New York as such rules
19 existed as of the date this act shall have become law, in order to enti-
20 tle such multiple dwelling to the benefits pursuant to section 421-a of
21 the real property tax law for a specified number of units in the
22 geographic exclusion area, provided that such negotiable certificates
23 were generated by a written agreement with the Department of Housing
24 Preservation and Development, and provided further that, notwithstanding
25 any other provision of law, benefits granted pursuant to section 421-a
26 of the real property tax law for such multiple dwelling shall be granted
27 as if construction commenced as of the date this act shall have become
28 law.
29 § 4. Subparagraph (i) of paragraph (a) of subdivision 2 of section
30 421-a of the real property tax law, as amended by section 38 of part B
31 of chapter 97 of the laws of 2011, is amended to read as follows:
32 (i) Within a city having a population of one million or more, new
33 multiple dwellings, except hotels, shall be exempt from taxation for
34 local purposes, other than assessments for local improvements, for the
35 tax year or years immediately following taxable status dates occurring
36 subsequent to the commencement and prior to the completion of
37 construction, but not to exceed three such tax years, [except for new
38 multiple dwellings the construction of which commenced between January
39 first, two thousand seven, and June thirtieth, two thousand nine, shall
40 have an additional thirty-six months to complete construction and shall
41 be eligible for full exemption from taxation for the first three years
42 of the period of construction; any eligible project that seeks to
43 utilize the six-year period of construction authorized by this section
44 must apply for a preliminary certificate of eligibility within one year
45 of the effective date of the rent act of 2011, provided, however that
46 such multiple dwellings shall be eligible for a maximum of three years
47 of benefits during the construction period,] and shall continue to be
48 exempt from such taxation in tax years immediately following the taxable
49 status date first occurring after the expiration of the exemption herein
50 conferred during construction so long as used at the completion of
51 construction for dwelling purposes for a period not to exceed ten years
52 in the aggregate after the taxable status date immediately following the
53 completion thereof, as follows:
54 (A) except as otherwise provided herein there shall be full exemption
55 from taxation during the period of construction or the period of three
56 years immediately following commencement of construction, whichever
A. 10252--C 5
1 expires sooner, [except for new multiple dwellings the construction of
2 which commenced between January first, two thousand seven, and June
3 thirtieth, two thousand nine, shall have an additional thirty-six months
4 to complete construction and shall be eligible for full exemption from
5 taxation for the first three years of the period of construction; any
6 eligible project that seeks to utilize the six-year period of
7 construction authorized by this section must apply for a preliminary
8 certificate of eligibility within one year of the effective date of the
9 rent act of 2011, provided, however that such multiple dwellings shall
10 be eligible for a maximum of three years of benefits during the
11 construction period,] and for two years following such period;
12 (B) followed by two years of exemption from eighty per cent of such
13 taxation;
14 (C) followed by two years of exemption from sixty per cent of such
15 taxation;
16 (D) followed by two years of exemption from forty per cent of such
17 taxation;
18 (E) followed by two years of exemption from twenty per cent of such
19 taxation;
20 The following table shall illustrate the computation of the tax
21 exemption:
22 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
23 Exemption
24 During Construction (maximum three years)[; 100%
25 except construction commenced between January
26 first, two thousand seven and June
27 thirtieth, two thousand nine (maximum
28 three years)]
29 Following completion of work
30 Year:
31 1 100%
32 2 100
33 3 80
34 4 80
35 5 60
36 6 60
37 7 40
38 8 40
39 9 20
40 10 20
41 § 5. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
42 of section 421-a of the real property tax law, as amended by section 39
43 of part B of chapter 97 of the laws of 2011, is amended to read as
44 follows:
45 (A) Within a city having a population of one million or more the local
46 housing agency may adopt rules and regulations providing that except in
47 areas excluded by local law new multiple dwellings, except hotels, shall
48 be exempt from taxation for local purposes, other than assessments for
49 local improvements, for the tax year or years immediately following
50 taxable status dates occurring subsequent to the commencement and prior
51 to the completion of construction, but not to exceed three such tax
52 years, [except for new multiple dwellings the construction of which
A. 10252--C 6
1 commenced between January first, two thousand seven, and June thirtieth,
2 two thousand nine, shall have an additional thirty-six months to
3 complete construction and shall be eligible for full exemption from
4 taxation for the first three years of the period of construction; any
5 eligible project that seeks to utilize the six-year period of
6 construction authorized by this section must apply for a preliminary
7 certificate of eligibility within one year of the effective date of the
8 rent act of 2011, provided, however that such multiple dwellings shall
9 be eligible for a maximum of three years of benefits during the
10 construction period,] and shall continue to be exempt from such taxation
11 in tax years immediately following the taxable status date first occur-
12 ring after the expiration of the exemption herein conferred during such
13 construction so long as used at the completion of construction for
14 dwelling purposes for a period not to exceed fifteen years in the aggre-
15 gate, as follows:
16 a. except as otherwise provided herein there shall be full exemption
17 from taxation during the period of construction or the period of three
18 years immediately following commencement of construction, whichever
19 expires sooner, [except for new multiple dwellings the construction of
20 which commenced between January first, two thousand seven, and June
21 thirtieth, two thousand nine, shall have an additional thirty-six months
22 to complete construction and shall be eligible for full exemption from
23 taxation for the first three years of the period of construction; any
24 eligible project that seeks to utilize the six-year period of
25 construction authorized by this section must apply for a preliminary
26 certificate of eligibility within one year of the effective date of the
27 rent act of 2011, provided, however that such multiple dwellings shall
28 be eligible for a maximum of three years of benefits during the
29 construction period,] and for eleven 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 § 6. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
39 2 of section 421-a of the real property tax law, as amended by section
40 40 of part B of chapter 97 of the laws of 2011, is amended to read as
41 follows:
42 (A) Within a city having a population of one million or more the local
43 housing agency may adopt rules and regulations providing that new multi-
44 ple dwellings, except hotels, 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 three such tax years, [except for new
49 multiple dwellings the construction of which commenced between January
50 first, two thousand seven, and June thirtieth, two thousand nine, shall
51 have an additional thirty-six months to complete construction and shall
52 be eligible for full exemption from taxation for the first three years
53 of the period of construction; any eligible project that seeks to
54 utilize the six-year period of construction authorized by this section
55 must apply for a preliminary certificate of eligibility within one year
56 of the effective date of the rent act of 2011, provided, however that
A. 10252--C 7
1 such multiple dwellings shall be eligible for a maximum of three years
2 of benefits during the construction period,] and shall continue to be
3 exempt from such taxation in tax years immediately following the taxable
4 status date first occurring after the expiration of the exemption herein
5 conferred during such construction so long as used at the completion of
6 construction for dwelling purposes for a period not to exceed twenty-
7 five years in the aggregate, provided that the area in which the project
8 is situated is a neighborhood preservation program area as determined by
9 the local housing agency as of June first, nineteen hundred eighty-five,
10 or is a neighborhood preservation area as determined by the New York
11 city planning commission as of June first, nineteen hundred eighty-five,
12 or is an area that was eligible for mortgage insurance provided by the
13 rehabilitation mortgage insurance corporation as of May first, nineteen
14 hundred ninety-two or is an area receiving funding for a neighborhood
15 preservation project pursuant to the neighborhood reinvestment corpo-
16 ration act (42 U.S.C. §§180 et seq.) as of June first, nineteen hundred
17 eighty-five, as follows:
18 a. except as otherwise provided herein there shall be full exemption
19 from taxation during the period of construction or the period of three
20 years immediately following commencement of construction, whichever
21 expires sooner, [except for new multiple dwellings the construction of
22 which commenced between January first, two thousand seven, and June
23 thirtieth, two thousand nine, shall have an additional thirty-six months
24 to complete construction and shall be eligible for full exemption from
25 taxation for the first three years of the period of construction; any
26 eligible project that seeks to utilize the six-year period of
27 construction authorized by this section must apply for a preliminary
28 certificate of eligibility within one year of the effective date of the
29 rent act of 2011, provided, however that such multiple dwellings shall
30 be eligible for a maximum of three years of benefits during the
31 construction period,] and for twenty-one years following such period;
32 b. followed by one year of exemption from eighty percent of such taxa-
33 tion;
34 c. followed by one year of exemption from sixty percent of such taxa-
35 tion;
36 d. followed by one year of exemption from forty percent of such taxa-
37 tion;
38 e. followed by one year of exemption from twenty percent of such taxa-
39 tion.
40 § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
41 sion, section or subpart of this act shall be adjudged by any court of
42 competent jurisdiction to be invalid, such judgment shall not affect,
43 impair, or invalidate the remainder thereof, but shall be confined in
44 its operation to the clause, sentence, paragraph, subdivision, section
45 or subpart thereof directly involved in the controversy in which such
46 judgment shall have been rendered. It is hereby declared to be the
47 intent of the legislature that this act would have been enacted even if
48 such invalid provisions had not been included herein.
49 § 8. This act shall take effect immediately, provided, however, that
50 the provisions of section one of this act shall be deemed to have been
51 in full force and effect on and after July 1, 2010; and provided
52 further, however, that the provisions of section three of this act shall
53 be deemed to have been in full force and effect on and after December
54 31, 2007; and provided further, however, that the provisions of sections
55 four, five and six of this act shall be deemed to have been in full
56 force and effect on and after December 28, 2010; and provided that, with
A. 10252--C 8
1 respect to any application for a preliminary certificate of eligibility
2 that is filed no later than June 24, 2012, or that is filed for a
3 project that was the subject of mortgage foreclosure proceedings or
4 other lien enforcement litigation by a lender on or before June 24,
5 2012, such project shall be subject to that portion of the definition of
6 "commence" contained in item (1) of clause (iv) of subparagraph (2) of
7 paragraph (b) of subdivision (a) of section 6-09 of title twenty-eight
8 of the rules of the city of New York.
