New York State Assembly

 
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A10456 Summary:

A10456 Actions:

A10456 Committee Votes:

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/02/2022AYE/NAY:33/0  Action: Favorable refer to committee Rules        
Weinstein
Aye
Ra
Aye
Glick
Aye
Fitzpatrick
Aye
Nolan
Aye
Hawley
Aye
Pretlow
Aye
Montesano
Aye
Colton
Aye
Blankenbush
Aye
Cook
Aye
Norris
Aye
Cahill
Aye
Brabenec
Aye
Aubry
Aye
Palmesano
Aye
Cusick
Aye
Byrne
Aye
Benedetto
Aye
Ashby
Aye
Weprin
Aye
Ramos
Excused
Braunstein
Aye
McDonald
Aye
Rozic
Aye
Dinowitz
Aye
Joyner
Excused
Magnarelli
Aye
Zebrowski
Aye
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye
Walker
Aye
Bichotte Hermel
Aye

Committee:RULES   Chair:Gottfried      
DATE:06/03/2022AYE/NAY:28/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Gottfried
Aye
Hawley
Aye
Nolan
Excused
Giglio
Aye
Weinstein
Aye
Blankenbush
Aye
Pretlow
Aye
Norris
Aye
Cook
Aye
Montesano
Aye
Glick
Aye
Ra
Aye
Aubry
Aye
Brabenec
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Excused
Magnarelli
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Aye
Davila
Aye
Hyndman
Aye

A10456 Floor Votes:

A10456 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10456
 
                   IN ASSEMBLY
 
                                      May 25, 2022
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- (at request of 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  exemption and a tax abatement for alterations and improvements to
          multiple dwellings for purposes of preserving habitability in afforda-
          ble 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. Affordable housing rehabilitation program.   (a) Definitions.  For
     4  the purposes of this subdivision:
     5    (1) "Affordable rent" shall mean the maximum rent within the marketing
     6  band  that  is  allowed  for  an  affordable rental unit as such rent is
     7  established by the local housing agency.
     8    (2) "Affordable rental unit" shall mean a dwelling unit in an eligible
     9  rental building that:
    10    (A) is affordable to individuals or families  whose  household  income
    11  does  not  exceed eighty percent of the area median income, adjusted for
    12  family size; and
    13    (B) upon  each  subsequent  rental  following  a  vacancy  during  the
    14  restriction period, is rented at or below the applicable affordable rent
    15  and  occupied by an individual or family whose household income does not
    16  exceed eighty percent of the area median  income,  adjusted  for  family
    17  size,  at  the time that such household initially occupies such dwelling
    18  unit, provided that nothing in this subdivision shall prohibit occupancy
    19  by individuals or families whose household income is  less  than  eighty
    20  percent of the area median income, adjusted for family size, nor prohib-
    21  it  the  owner  from requiring occupancy by individuals or families with
    22  such lower household income.
    23    (3) "Certificate of eligibility and  reasonable  cost"  shall  mean  a
    24  document  issued  by  the  local  housing agency that establishes that a
    25  property is eligible for rehabilitation program benefits and sets  forth
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15906-02-2
        A. 10456                            2
 
     1  the  certified  reasonable  cost  of the eligible construction for which
     2  such benefits shall be received.
     3    (4)  "Certified reasonable cost schedule" shall mean a table providing
     4  maximum dollar limits for specified alterations and improvements, estab-
     5  lished, and updated as necessary, by the local housing agency.
     6    (5) "Checklist" shall mean a document that the  local  housing  agency
     7  issues requesting additional information or documentation that is neces-
     8  sary  for  further  assessment  of  an  application for a certificate of
     9  eligibility and reasonable cost where  such  application  contained  all
    10  information and documentation required at the initial filing.
    11    (6)   "Commencement   date"  shall  mean,  with  respect  to  eligible
    12  construction, the date on which any physical  operation  undertaken  for
    13  the purpose of performing such eligible construction lawfully begins.
    14    (7)   "Completion   date"   shall   mean,  with  respect  to  eligible
    15  construction, the date on which:
    16    (A) every physical operation undertaken for the purpose of all  eligi-
    17  ble construction has concluded; and
    18    (B)  all such eligible construction has been completed to a reasonable
    19  and customary standard that renders such eligible  construction  capable
    20  of  use  for  the  purpose  for  which  such  eligible  construction was
    21  intended.
    22    (8) "Dwelling unit" shall mean  any  residential  accommodation  in  a
    23  class A multiple dwelling that:
    24    (A)  is  arranged,  designed,  used or intended for use by one or more
    25  persons living together and maintaining a common household;
    26    (B) contains at least one room; and
    27    (C) contains within such accommodation  lawful  sanitary  and  kitchen
    28  facilities reserved for its occupants.
    29    (9)  "Eligible  building"  shall  mean an eligible rental building, an
    30  eligible homeownership building, or an eligible regulated  homeownership
    31  building,  provided  that  such building contains three or more dwelling
    32  units.
    33    (10) "Eligible construction" shall mean alterations or improvements to
    34  an eligible building that:
    35    (A) are specifically identified on the certified reasonable cost sche-
    36  dule;
    37    (B) meet the minimum scope of work threshold;
    38    (C) have a completion date that is after June twenty-ninth, two  thou-
    39  sand twenty-two and prior to June thirtieth, two thousand twenty-six and
    40  that is not more than thirty months after their commencement date; and
    41    (D) are not attributable to any increased cubic content in such eligi-
    42  ble building.
    43    (11) "Eligible homeownership building" shall mean an existing building
    44  that:
    45    (A)  is a class A multiple dwelling operated as condominium or cooper-
    46  ative housing;
    47    (B) is not operating in whole or in part as a hotel; and
    48    (C) has an average assessed valuation, including the valuation of  the
    49  land, that as of the commencement date does not exceed the homeownership
    50  average assessed valuation limitation.
    51    (12)  "Eligible regulated homeownership building" shall mean an exist-
    52  ing building that is a class A multiple dwelling owned and  operated  by
    53  either:
    54    (A)  a mutual company that continues to be organized and operated as a
    55  mutual company and that has entered into and recorded a  mutual  company
    56  regulatory agreement; or
        A. 10456                            3
 
     1    (B)  a mutual redevelopment company that continues to be organized and
     2  operated as a mutual redevelopment company and that has entered into and
     3  recorded a mutual redevelopment company regulatory agreement.
     4    (13) "Eligible rental building" shall mean an existing building that:
     5    (A)  is a class A multiple dwelling in which all of the dwelling units
     6  are operated as rental housing;
     7    (B) is not operating in whole or in part as a hotel; and
     8    (C) satisfies one of the following conditions:
     9    (i) not less than fifty percent of the dwelling units in such building
    10  are affordable rental units;
    11    (ii) such building is owned and operated by a  limited-profit  housing
    12  company; or
    13    (iii)  such  building  is  the  recipient  of substantial governmental
    14  assistance.
    15    (14) "Existing building" shall mean an enclosed structure which:
    16    (A) is permanently affixed to the land;
    17    (B) has one or more floors and a roof;
    18    (C) is bounded by walls;
    19    (D) has at least one principal entrance utilized for day-to-day pedes-
    20  trian ingress and egress;
    21    (E) has a certificate of occupancy or equivalent document that  is  in
    22  effect prior to the commencement date; and
    23    (F)  exclusive of the land, has an assessed valuation of more than one
    24  thousand dollars for the fiscal year immediately preceding the commence-
    25  ment date.
    26    (15) "Homeownership average assessed valuation limitation" shall  mean
    27  an  average assessed valuation of forty-five thousand dollars per dwell-
    28  ing unit.
    29    (16) "Limited-profit housing company" shall have the same  meaning  as
    30  "company"  set  forth  in  section twelve of the private housing finance
    31  law.
    32    (17) "Market rental unit" shall mean a dwelling unit  in  an  eligible
    33  rental building other than an affordable rental unit.
    34    (18)  "Marketing  band"  shall  mean maximum rent amounts ranging from
    35  twenty percent of eighty percent of the area median income, adjusted for
    36  family size, to thirty percent of eighty  percent  of  the  area  median
    37  income, adjusted for family size.
    38    (19)  "Minimum  scope  of work threshold" shall mean a total amount of
    39  certified reasonable cost established by rules and  regulations  of  the
    40  local  housing  agency,  provided that such amount shall be no less than
    41  one thousand five hundred dollars for each dwelling unit in existence on
    42  the completion date.
    43    (20) "Multiple dwelling" shall have the meaning set forth  in  section
    44  four of the multiple dwelling law.
    45    (21)  "Mutual  company"  shall  have  the meaning set forth in section
    46  twelve of the private housing finance law.
    47    (22) "Mutual company regulatory agreement" shall mean  a  binding  and
    48  irrevocable  agreement  between a mutual company and the commissioner of
    49  housing, the mutual company supervising agency, the New York city  hous-
    50  ing development corporation, or the New York state housing finance agen-
    51  cy  prohibiting the dissolution or reconstitution of such mutual company
    52  pursuant to section thirty-five of the private housing finance  law  for
    53  not  less  than  fifteen  years  from the commencement of rehabilitation
    54  program benefits for the existing building owned and  operated  by  such
    55  mutual company.
        A. 10456                            4
 
     1    (23)  "Mutual company supervising agency" shall have the same meaning,
     2  with respect to any mutual company, as "supervising agency" set forth in
     3  section two of the private housing finance law.
     4    (24)  "Mutual  redevelopment  company"  shall have the same meaning as
     5  "mutual" when applied to a redevelopment company as set forth in section
     6  one hundred two of the private housing finance law.
     7    (25) "Mutual redevelopment company regulatory agreement" shall mean  a
     8  binding and irrevocable agreement between a mutual redevelopment company
     9  and  the  commissioner of housing, the redevelopment company supervising
    10  agency, the New York city housing development corporation,  or  the  New
    11  York  state housing finance agency prohibiting the dissolution or recon-
    12  stitution of such mutual redevelopment company pursuant to  section  one
    13  hundred twenty-three of the private housing finance law until the earli-
    14  er of: (A) fifteen years from the commencement of rehabilitation program
    15  benefits  for  the  existing  building owned and operated by such mutual
    16  redevelopment company; or (B) the expiration of any tax exemption grant-
    17  ed to such mutual redevelopment company pursuant to section one  hundred
    18  twenty-five of the private housing finance law.
    19    (26)  "Redevelopment  company"  shall  have  the  meaning set forth in
    20  section one hundred two of the private housing finance law.
    21    (27) "Redevelopment company supervising agency" shall  have  the  same
    22  meaning,  with  respect  to  any  redevelopment company, as "supervising
    23  agency" set forth in section one hundred  two  of  the  private  housing
    24  finance law.
    25    (28)  "Rehabilitation  program  benefits" shall mean exemption from or
    26  abatement of real property taxes pursuant to this subdivision.
    27    (29) "Rent regulation" shall mean, collectively, the emergency housing
    28  rent control law, any local law enacted pursuant to the local  emergency
    29  housing rent control act, the rent stabilization law of nineteen hundred
    30  sixty-nine,  the  rent  stabilization  code,  and  the  emergency tenant
    31  protection act of nineteen seventy-four, all as  in  effect  as  of  the
    32  effective  date  of  the  chapter of the laws of two thousand twenty-two
    33  that added this subdivision, or as any such statute is amended thereaft-
    34  er, together with  any  successor  statutes  or  regulations  addressing
    35  substantially the same subject matter.
    36    (30)  "Restriction period" shall mean, notwithstanding any termination
    37  or revocation of rehabilitation program benefits  prior  to  the  period
    38  described in clause (A) or (B), the following:
    39    (A)  the  period  commencing  on  the restrictive declaration date and
    40  expiring on the fifteenth anniversary thereof, or such additional period
    41  of time as may be imposed pursuant to clause (A) of subparagraph six  of
    42  paragraph (f) of this subdivision; or
    43    (B)  for  an  exemption granted pursuant to clause (B) of subparagraph
    44  one of paragraph (b) of this subdivision, the period commencing upon the
    45  restrictive declaration date and expiring on the date of the  expiration
    46  of  such  exemption, or such additional period of time as may be imposed
    47  pursuant to clause (A) of subparagraph six  of  paragraph  (f)  of  this
    48  subdivision.
    49    (31) "Restrictive declaration" shall mean the document executed by all
    50  parties in interest to an eligible rental building, other than one owned
    51  and  operated  by  a limited-profit housing company, which provides that
    52  such eligible rental building shall comply with the applicable  require-
    53  ments  of  this subdivision, any local law or ordinance enacted pursuant
    54  to this subdivision, and any rules and regulations of the local  housing
    55  agency.
        A. 10456                            5
 
     1    (32)  "Restrictive  declaration date" shall mean the date upon which a
     2  restrictive declaration is recorded and effective  against  an  eligible
     3  rental  building,  other than one owned and operated by a limited-profit
     4  housing company.
     5    (33)  "Substantial  governmental assistance" shall mean grants, loans,
     6  or subsidies from any federal, state or  local  governmental  agency  or
     7  instrumentality  in  furtherance  of  a  program  for the development of
     8  affordable housing approved by the local housing agency,  provided  that
     9  such grants, loans, or subsidies are provided in accordance with a regu-
    10  latory  agreement  entered into with such agency or instrumentality that
    11  is in effect as of the filing date of the application for a  certificate
    12  of eligibility and reasonable cost.
    13    (34)  "Substantial  interest"  shall mean an ownership interest of ten
    14  percent or more.
    15    (b) Exemption. (1) Notwithstanding the provisions of any other  subdi-
    16  vision  of  this  section or of any general, special or local law to the
    17  contrary, any city to which the multiple  dwelling  law  is  applicable,
    18  acting  through its local legislative body or other governing agency, is
    19  hereby authorized and empowered, to and including  June  thirtieth,  two
    20  thousand  twenty-five,  to  adopt  and  amend  local  laws or ordinances
    21  providing that:
    22    (A) an eligible rental building in  which  eligible  construction  has
    23  been  completed,  and  which is not the recipient of substantial govern-
    24  mental assistance, shall be exempt from real property taxation for local
    25  purposes as provided herein equal to five percent of the assessed  valu-
    26  ation of such building as of the commencement date;
    27    (B)  an  eligible  rental  building in which eligible construction has
    28  been completed and which is the recipient  of  substantial  governmental
    29  assistance  shall  be  exempt  from  real  property  taxation  for local
    30  purposes as provided herein equal to fifteen  percent  of  the  assessed
    31  valuation of such building as of the commencement date; and
    32    (C)  an  eligible  rental  building  owned by a limited-profit housing
    33  company or redevelopment company, shall not be eligible for an exemption
    34  from real property taxation for local purposes pursuant to this subdivi-
    35  sion.
    36    (2) Such exemption shall begin with the first quarterly tax bill imme-
    37  diately following the restrictive declaration date  and  shall  continue
    38  for a period not to exceed fifteen years in the aggregate, as follows:
    39    (A) except as otherwise provided herein, for ten years, such exemption
    40  shall  be  equal  to the amount of assessed valuation that is subject to
    41  exemption under this paragraph as of the commencement date;
    42    (B) followed by one year of exemption from eighty-three and  one-third
    43  percent of such amount;
    44    (C)  followed  by  one year of exemption from sixty-six and two-thirds
    45  percent of such amount;
    46    (D) followed by one year of  exemption  from  fifty  percent  of  such
    47  amount;
    48    (E)  followed by one year of exemption from thirty-three and one-third
    49  percent of such amount;
    50    (F) followed by one year of  exemption  from  sixteen  and  two-thirds
    51  percent of such amount;
    52    (G)  after which the amount of assessed valuation that had been exempt
    53  is fully taxable.
    54    (3) Notwithstanding subparagraphs one and two of this paragraph:
    55    (A) the owner of any such eligible rental building, shall pay, in each
    56  year in which rehabilitation program benefits are in effect, real  prop-
        A. 10456                            6
 
     1  erty taxes on any amount of the assessed valuation of such building that
     2  is not exempted from real property taxation pursuant to subparagraph two
     3  of this paragraph and for which there is no abatement thereof in accord-
     4  ance  with  paragraph  (c) of this subdivision, as well as any such real
     5  property taxes related to the land portion of such real property; and
     6    (B) if eligible construction is completed on an eligible rental build-
     7  ing that is the recipient of substantial  governmental  assistance,  the
     8  exemption  under  this  paragraph  shall  continue  for  a period not to
     9  exceed, in the aggregate, the greater of fifteen years or the  remaining
    10  term,  up  to forty years, of the relevant regulatory agreement with the
    11  local housing agency in effect as of the filing date of the  application
    12  for  a  certificate  of  eligibility and reasonable cost, with the final
    13  five years of such exemption to be implemented in accordance with claus-
    14  es (B) through (F) of subparagraph two of this  paragraph,  after  which
    15  the assessed value is fully taxable.
    16    (4) Notwithstanding any other provision of this paragraph, no eligible
    17  rental  building  shall  receive  concurrent exemptions under this para-
    18  graph, and upon the commencement of an exemption  under  this  paragraph
    19  for  an  eligible  rental building, any prior exemption under this para-
    20  graph for such eligible rental building still in effect shall immediate-
    21  ly terminate.
    22    (c) Abatement. Any such local law or ordinance  may  also  provide  an
    23  abatement of real property taxes on an eligible building in which eligi-
    24  ble construction has been completed, provided that:
    25    (1)  such  abatement shall not exceed seventy percent of the certified
    26  reasonable cost of the eligible construction, as determined under  rules
    27  and regulations of the local housing agency;
    28    (2) such abatement shall not be effective for more than twenty years;
    29    (3)  the  annual  abatement  of  real  property taxes on such eligible
    30  building shall not exceed eight  and  one-third  percent  of  the  total
    31  certified reasonable cost of such eligible construction;
    32    (4)  the  annual  abatement  of  real  property taxes on such eligible
    33  building in any consecutive twelve-month period shall in no event exceed
    34  the amount of real property taxes payable in  such  twelve-month  period
    35  for  such  building,  provided,  however,  that such abatement shall not
    36  exceed fifty percent of the amount of real  property  taxes  payable  in
    37  such twelve-month period for any of the following:
    38    (A)  an  eligible  rental  building  owned by a limited-profit housing
    39  company or a redevelopment company;
    40    (B) an eligible homeownership building; and
    41    (C) an eligible regulated homeownership building; and
    42    (5) such abatement shall become effective:
    43    (A) for eligible rental buildings other than those owned and  operated
    44  by  limited-profit housing companies, beginning with the first quarterly
    45  tax bill immediately following the restrictive declaration date;
    46    (B) for all other eligible buildings, including eligible rental build-
    47  ings owned and operated by limited-profit housing  companies,  beginning
    48  with  the  first  quarterly  tax  bill immediately following the date of
    49  issuance of the certificate of eligibility and reasonable cost.
    50    (d) Authority of city to adopt rules and regulations. Any  such  local
    51  law  or ordinance shall authorize the adoption of rules and regulations,
    52  not inconsistent with this subdivision, by the local housing agency  and
    53  any other local agency necessary for the implementation of this subdivi-
    54  sion.
    55    (e)  Applications.   (1) Any such local law or ordinance shall require
    56  that an application for a certificate of eligibility and reasonable cost
        A. 10456                            7
 
     1  pursuant to this subdivision be made after the completion  date  and  no
     2  later than four months from such completion date.
     3    (2)  Such  application shall include evidence of eligibility for reha-
     4  bilitation program benefits and evidence of reasonable cost as shall  be
     5  satisfactory  to the local housing agency including, but not limited to,
     6  evidence showing the cost of eligible construction.
     7    (3) The local housing agency shall require a non-refundable filing fee
     8  that shall be paid by a certified check  or  cashier's  check  upon  the
     9  filing of an application for a certificate of eligibility and reasonable
    10  cost.  Such fee shall be (A) one thousand dollars, plus (B) seventy-five
    11  dollars for each dwelling unit in excess of six dwelling  units  in  the
    12  eligible building that is the subject of such application.
    13    (4)  Any  application that is filed pursuant to this paragraph that is
    14  missing any of the information and  documentation  required  at  initial
    15  filing  by  such local law or ordinance and any rules and regulations of
    16  the local housing agency shall be denied, provided that a  new  applica-
    17  tion for the same eligible construction, together with a new non-refund-
    18  able  filing  fee, may be filed within fifteen days of the date of issu-
    19  ance of such denial. If such second application is also missing any such
    20  required information and  documentation,  it  shall  be  denied  and  no
    21  further applications for the same eligible construction shall be permit-
    22  ted.
    23    (5)  The  failure  of  an applicant to respond to any checklist within
    24  thirty days of the date of its issuance  by  the  local  housing  agency
    25  shall  result in denial of such application, and no further applications
    26  for the same eligible construction shall be permitted. The local housing
    27  agency shall issue not more than three checklists  per  application.  An
    28  application  for  a certificate of eligibility and reasonable cost shall
    29  be denied when the local housing agency does not have a sufficient basis
    30  to issue a certificate of eligibility  and  reasonable  cost  after  the
    31  timely  response  of an applicant to the third checklist concerning such
    32  application.  After the local housing agency has denied  an  application
    33  for  the  reason  described in the preceding sentence, such agency shall
    34  permit no further applications for the same eligible construction.
    35    (6) An application for a certificate  of  eligibility  and  reasonable
    36  cost shall also include an affidavit of no harassment.
    37    (A) Such affidavit shall set forth the following information:
    38    (i)  the  name  of  every  owner  of record and owner of a substantial
    39  interest in the eligible building or entity owning the eligible building
    40  or sponsoring the eligible construction; and
    41    (ii) a statement that none of such persons had, within the five  years
    42  prior  to the completion date, been found to have harassed or unlawfully
    43  evicted tenants by judgment or  determination  of  a  court  or  agency,
    44  including  a  non-governmental agency having appropriate legal jurisdic-
    45  tion, under the penal law, any state or local law  regulating  rents  or
    46  any  state  or  local  law relating to harassment of tenants or unlawful
    47  eviction.
    48    (B) No eligible building shall be eligible for an  exemption  pursuant
    49  to  paragraph  (b) of this subdivision or an abatement pursuant to para-
    50  graph (c) of this subdivision where:
    51    (i) any affidavit required under this subparagraph has not been filed;
    52  or
    53    (ii) any such affidavit contains a willful misrepresentation or  omis-
    54  sion of any material fact; or
    55    (iii)  any  owner  of record or owner of a substantial interest in the
    56  eligible building or entity owning the eligible building  or  sponsoring
        A. 10456                            8
 
     1  the  eligible  construction has been found, by judgment or determination
     2  of a court or agency, including a non-governmental agency having  appro-
     3  priate  legal  jurisdiction, under the penal law, any state or local law
     4  regulating  rents  or  any  state or local law relating to harassment of
     5  tenants or unlawful eviction, to have, within the five  years  prior  to
     6  the  completion  date, harassed or unlawfully evicted tenants, until and
     7  unless the finding is reversed on appeal.
     8    (C) Notwithstanding the provisions of any general,  special  or  local
     9  law  to  the  contrary, the corporation counsel or other legal represen-
    10  tative of a city having a population of  one  million  or  more  or  the
    11  district  attorney  of any county, may institute an action or proceeding
    12  in any court of competent jurisdiction that may be appropriate or neces-
    13  sary to determine whether any owner of record or owner of a  substantial
    14  interest in the eligible building or entity owning the eligible building
    15  or  sponsoring  the  eligible  construction  has  harassed or unlawfully
    16  evicted tenants as described in this subparagraph.
    17    (7) Notwithstanding the provisions of any general,  special  or  local
    18  law  to  the contrary, the local housing agency may require by rules and
    19  regulations that an application for a  certificate  of  eligibility  and
    20  reasonable cost be filed electronically.
    21    (f) Additional requirements for an eligible rental building other than
    22  one  owned  and  operated  by a limited-profit housing company. Any such
    23  local law or ordinance shall, in addition to  all  other  conditions  of
    24  eligibility for rehabilitation program benefits set forth in this subdi-
    25  vision,  require  that an eligible rental building, other than one owned
    26  and operated by a limited-profit housing company, also comply  with  all
    27  provisions of this paragraph. Notwithstanding the foregoing, an eligible
    28  rental  building  that  is  the  recipient  of  substantial governmental
    29  assistance shall not be  required  to  comply  with  the  provisions  of
    30  subparagraph three of this paragraph.
    31    (1)  Notwithstanding any provision of rent regulation to the contrary,
    32  any market rental unit within such eligible rental building  subject  to
    33  rent  regulation  as of the filing date of the application for a certif-
    34  icate of eligibility and reasonable cost and any affordable rental  unit
    35  within such eligible rental building shall be subject to rent regulation
    36  until  such  unit  first  becomes  vacant  after  the  expiration of the
    37  restriction period at which time such unit, unless it would  be  subject
    38  to  rent regulation for reasons other than the provisions of this subdi-
    39  vision,  shall  be  deregulated,  provided,  however,  that  during  the
    40  restriction  period,  no  exemption or exclusion from any requirement of
    41  rent regulation shall apply to such dwelling units.
    42    (2) The owner of an eligible rental building shall execute and  record
    43  a  restrictive  declaration, in a form satisfactory to the local housing
    44  agency, that requires compliance with the provisions  of  this  subdivi-
    45  sion,  such local law or ordinance, and the rules and regulations of the
    46  local housing agency. Such restrictive declaration shall bind the  owner
    47  of such eligible rental building and its successors and assigns, and may
    48  include  such  other  terms  and  conditions as the local housing agency
    49  shall determine.
    50    (3) Additional requirements for an eligible rental  building  that  is
    51  not a recipient of substantial governmental assistance.
    52    (A) Not less than fifty percent of the dwelling units in such eligible
    53  rental  building  shall  be  designated  as affordable rental units. The
    54  restrictive declaration for any such eligible rental building shall  not
    55  be  executed and recorded until leases in accordance with the applicable
    56  provisions of rent regulation have been executed  with  respect  to  all
        A. 10456                            9
 
     1  affordable  rental  units  within  such eligible rental building and all
     2  affordable rental units have been registered  in  accordance  with  such
     3  rent regulation provisions.
     4    (B)  The  owner  of such eligible rental building shall ensure that no
     5  affordable rental unit is held off the market for a period that is long-
     6  er than reasonably necessary. To that end, such owner shall  notify  the
     7  local  housing  agency  of a vacancy of an affordable rental unit within
     8  such rental building during the restriction period no later  than  four-
     9  teen  days  following  such  vacancy, after which such affordable rental
    10  unit shall be marketed in accordance with the rules and  regulations  of
    11  the  local  housing  agency and shall be rented by the owner in a prompt
    12  and timely manner. The local housing agency may impose requirements upon
    13  such owner to facilitate such prompt and timely rental, as set forth  in
    14  rules and regulations of the local housing agency.
    15    (C)  The  owner  of  such  eligible  rental building shall, during the
    16  restriction period, waive the collection of any major  capital  improve-
    17  ment rent increase granted by the New York state division of housing and
    18  community  renewal  pursuant  to rent regulation that is attributable to
    19  eligible construction for which such eligible rental  building  receives
    20  rehabilitation  program  benefits, and shall file a declaration with the
    21  New York state division of housing and community renewal providing  such
    22  waiver.
    23    (D)  An  affordable  rental  unit  shall not be rented on a temporary,
    24  transient or short-term basis.  Every lease and renewal thereof  for  an
    25  affordable  rental  unit shall be for a term of one or two years, at the
    26  option of the tenant, and shall include a  notice  in  at  least  twelve
    27  point type informing such tenant of their rights pursuant to this subdi-
    28  vision,  including  an explanation of the restrictions on rent increases
    29  that may be imposed on such affordable rental unit.
    30    (E) The local housing agency may establish by  rules  and  regulations
    31  such  requirements as the local housing agency deems necessary or appro-
    32  priate for the following:
    33    (i) designating affordable rental units, including,  but  not  limited
    34  to,  designating  the  unit  mix  and  distribution requirements of such
    35  affordable rental units in an eligible building;
    36    (ii) marketing affordable rental units upon any vacancy; and
    37    (iii) monitoring compliance with the provisions of  this  subdivision.
    38  Such  requirements  may include, but need not be limited to, retaining a
    39  monitor approved by the local housing agency and paid for by  the  owner
    40  of the eligible rental building.
    41    (4)  The owner of such eligible rental building shall not engage in or
    42  cause any harassment of the tenants of such eligible rental building  or
    43  unlawfully evict any such tenants during the restriction period.
    44    (5)  No  dwelling  units within such eligible rental building shall be
    45  converted to cooperative or condominium ownership during the restriction
    46  period.
    47    (6) Any  non-compliance  of  an  eligible  rental  building  with  the
    48  provisions  of  this  paragraph shall permit the local housing agency to
    49  take the following action:
    50    (A) extend the restriction period;
    51    (B) increase the number of affordable rental units  in  such  eligible
    52  rental building;
    53    (C)  impose  a  penalty  of  not more than the product of one thousand
    54  dollars per instance of non-compliance and the number of dwelling  units
    55  contained in such eligible rental building; and
        A. 10456                           10
 
     1    (D) terminate or revoke any rehabilitation program benefits in accord-
     2  ance with paragraph (n) of this subdivision.
     3    (g)  Compliance  with  applicable law. Any such local law or ordinance
     4  may also provide that  rehabilitation  program  benefits  shall  not  be
     5  allowed  for any eligible building unless and until such eligible build-
     6  ing complies with all applicable provisions of law.
     7    (h) Implementation of rehabilitation program benefits.  Upon  issuance
     8  of  a  certificate  of  eligibility  and  reasonable cost and payment of
     9  outstanding fees, the local housing agency shall be authorized to trans-
    10  mit such certificate of eligibility and reasonable  cost  to  the  local
    11  agency  responsible for real property tax assessment.  Upon receipt of a
    12  certificate of eligibility and reasonable cost, the local agency respon-
    13  sible for real property tax assessment shall certify the amount of value
    14  to be exempt from taxation and the amount of taxes to be abated pursuant
    15  to paragraphs (b) and (c) of this subdivision, respectively, and  pursu-
    16  ant  to  such certificate of eligibility and reasonable cost provided by
    17  the local housing agency.
    18    (i) Outstanding taxes and charges. Any such  local  law  or  ordinance
    19  shall  also  provide  that  rehabilitation program benefits shall not be
    20  allowed for an eligible building in either of the following cases:
    21    (1) there are outstanding real estate taxes or water and sewer charges
    22  or payments in lieu of taxes that are due and owing as of the  last  day
    23  of  the  tax period preceding the date of the receipt of the certificate
    24  of eligibility and reasonable cost by the local agency  responsible  for
    25  real property tax assessment; or
    26    (2)  real  estate  taxes  or  water  and sewer charges due at any time
    27  during the authorized term of such benefits remain unpaid for  one  year
    28  after the same are due and payable.
    29    (j) Additional limitations on eligibility. Any such local law or ordi-
    30  nance shall also provide that:
    31    (1)  rehabilitation  program  benefits  shall  not  be allowed for any
    32  eligible building receiving tax exemption or abatement concurrently  for
    33  rehabilitation or new construction under any other provision of state or
    34  local  law  or ordinance with the exception of any eligible construction
    35  to an eligible building receiving a tax exemption or abatement under the
    36  provisions of the private housing finance law;
    37    (2) rehabilitation program benefits shall not be allowed for any  item
    38  of eligible construction in an eligible building if such eligible build-
    39  ing  is  receiving  tax exemption or abatement for the same or a similar
    40  item of eligible construction as of the December thirty-first  preceding
    41  the  date of application for a certificate of eligibility and reasonable
    42  cost for such rehabilitation program benefits;
    43    (3) where the eligible construction includes or benefits a portion  of
    44  an  eligible  building  that  is not occupied for dwelling purposes, the
    45  assessed valuation of such eligible building and the cost of the  eligi-
    46  ble  construction  shall  be  apportioned so that rehabilitation program
    47  benefits shall not be provided for eligible construction made for  other
    48  than dwelling purposes; and
    49    (4)  rehabilitation  program benefits shall not be applied to abate or
    50  reduce the taxes upon the land portion of  real  property,  which  shall
    51  continue  to  be taxed based upon the assessed valuation of the land and
    52  the applicable tax rate at the time such taxes are levied.
    53    (k) Re-inspection penalty. Any such local law or ordinance shall  also
    54  provide  that  if  the  local  housing agency cannot verify the eligible
    55  construction claimed by an applicant upon the first  inspection  by  the
    56  local  housing  agency of the eligible building, such applicant shall be
        A. 10456                           11
 
     1  required to pay ten times the actual cost of any  additional  inspection
     2  needed to verify such eligible construction.
     3    (l)  Strict  liability for inaccurate applications. Any such local law
     4  or ordinance shall also provide that if the local housing agency  deter-
     5  mines  that  an application for a certificate of eligibility and reason-
     6  able cost contains a material misstatement of fact,  the  local  housing
     7  agency  may  reject such application and bar the submission of any other
     8  application pursuant to this subdivision with respect to  such  eligible
     9  building  for a period not to exceed three years. An applicant shall not
    10  be relieved from liability under this paragraph because it submitted its
    11  application under a mistaken belief of fact.  Furthermore, any person or
    12  entity that files more than six applications containing such a  material
    13  misstatement of fact within any twelve month period shall be barred from
    14  submitting  any  new  application for rehabilitation program benefits on
    15  behalf of any eligible building for a period not to exceed five years.
    16    (m) Investigatory authority. Any such local  law  or  ordinance  shall
    17  also  allow  the local housing agency to require such certifications and
    18  consents necessary to access records, including other  tax  records,  as
    19  may  be  deemed  appropriate  to enforce the eligibility requirements of
    20  this subdivision. Any such local law or ordinance shall further  provide
    21  that,  for  purposes of determining and certifying eligibility for reha-
    22  bilitation program benefits and the  reasonable  cost  of  any  eligible
    23  construction, the local housing agency shall be authorized to:
    24    (1)  administer oaths to and take the testimony of any person, includ-
    25  ing, but not limited to, the owner of such eligible building;
    26    (2) issue subpoenas requiring the attendance of such persons  and  the
    27  production of any bills, books, papers or other documents as it may deem
    28  necessary;
    29    (3)  make preliminary estimates of the maximum reasonable cost of such
    30  eligible construction;
    31    (4) establish maximum allowable costs of specified units, fixtures  or
    32  work in such eligible construction;
    33    (5)  require the submission of plans and specifications of such eligi-
    34  ble construction before the commencement thereof;
    35    (6) require physical access to inspect the eligible building; and
    36    (7) on an annual basis, require  the  submission  of  leases  for  any
    37  dwelling  unit  in  a  building granted a certificate of eligibility and
    38  reasonable cost.
    39    (n) Termination or revocation. Any such local law or  ordinance  shall
    40  provide  that failure to comply with the provisions of this subdivision,
    41  any such local law or ordinance, any rules and  regulations  promulgated
    42  thereunder,  or  any  restrictive declaration, mutual company regulatory
    43  agreement, or mutual redevelopment company regulatory agreement  entered
    44  into  thereunder, may result in revocation of any rehabilitation program
    45  benefits retroactive to the commencement thereof.  Such  termination  or
    46  revocation  shall  not  exempt  such  eligible  building  from continued
    47  compliance with the requirements of this subdivision, such local law  or
    48  ordinance, such rules and regulations, and such restrictive declaration,
    49  mutual  company  regulatory  agreement,  or mutual redevelopment company
    50  regulatory agreement.
    51    (o) Criminal liability for unauthorized uses. Any such  local  law  or
    52  ordinance  shall  also  provide  that in the event that any recipient of
    53  rehabilitation program benefits uses any dwelling unit in such  eligible
    54  building in violation of the requirements of such local law or ordinance
    55  as  adopted  pursuant  to this subdivision and any rules and regulations
    56  promulgated pursuant thereto, such  recipient  shall  be  guilty  of  an
        A. 10456                           12
 
     1  unclassified misdemeanor punishable by a fine in an amount equivalent to
     2  double the value of the gain of such recipient from such unlawful use or
     3  imprisonment for not more than ninety days, or both.
     4    (p)  Private  right  of  action.  Any  prospective, present, or former
     5  tenant of an eligible rental building may sue to  enforce  the  require-
     6  ments  and prohibitions of this subdivision, any such local law or ordi-
     7  nance, any rules and regulations promulgated thereunder, or any restric-
     8  tive declaration entered into thereunder, in the supreme  court  of  New
     9  York.  Any  such  individual  harmed  by  reason  of a violation of such
    10  requirements and prohibitions may sue therefor in the supreme  court  of
    11  New  York  on  behalf of himself or herself, and shall recover threefold
    12  the damages sustained and the cost of the suit, including  a  reasonable
    13  attorney's  fee.  The  local  housing  agency may use any court decision
    14  under this paragraph that is adverse to the owner of an eligible  build-
    15  ing  as  the  basis  for further enforcement action. Notwithstanding any
    16  other provision of law, an action by a  tenant  of  an  eligible  rental
    17  building  under  this  paragraph must be commenced within six years from
    18  the date of the latest violation.
    19    (q) Appointment of receiver. In addition to the remedies for  non-com-
    20  pliance provided for in subparagraph six of paragraph (f) of this subdi-
    21  vision,  any such local law or ordinance may also provide that the local
    22  housing agency may make application for the appointment of a receiver in
    23  accordance with the procedures contained in such local law or ordinance.
    24  Any receiver appointed pursuant to this paragraph shall  be  authorized,
    25  in  addition  to any other powers conferred by law, to effect compliance
    26  with the provisions of this subdivision, such local  law  or  ordinance,
    27  and  rules and regulations of the local housing agency. Any expenditures
    28  incurred by the receiver to affect such compliance  shall  constitute  a
    29  debt  of  the owner and a lien upon the property, and upon the rents and
    30  income thereof, in accordance with  the  procedures  contained  in  such
    31  local  law  or ordinance. The local housing agency in its discretion may
    32  provide funds to be expended by  the  receiver,  and  such  funds  shall
    33  constitute a debt recoverable from the owner in accordance with applica-
    34  ble local laws or ordinances.
    35    (r)  Authority  of  city  to  limit  local law. Where a city enacts or
    36  amends a local law or ordinance under this subdivision, such  local  law
    37  or  ordinance may restrict, limit or condition the eligibility, scope or
    38  amount of rehabilitation program benefits under the local law  or  ordi-
    39  nance  in  any  manner, provided that the local law or ordinance may not
    40  grant rehabilitation program benefits  beyond  those  provided  in  this
    41  subdivision.
    42    § 2. This act shall take effect immediately.