Amd SS489, 467-a & 421-a, RPT L; amd SS11-1706 & 11-243, NYC Ad Cd; amd SS281, 286, 285 & 284, Mult Dwell L
Relates to the the exemption from taxation of alterations and improvements to multiple dwellings to eliminate fire and health hazards; relates to a partial abatement of real property taxes for condos and co-ops, in a city having a population of one million or more; relates to interim multiple dwellings in a city with a population of one million or more persons; relates to certain tax credits and exemptions in a city having a population of one million or more.
STATE OF NEW YORK
________________________________________________________________________
2320
2013-2014 Regular Sessions
IN SENATE
January 15, 2013
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the real property tax law, in relation to exemption from
taxation of alterations and improvements to multiple dwellings to
eliminate fire and health hazards and a partial abatement of real
property taxes for condominiums and cooperatives, in a city having a
population of one million or more; to amend the administrative code of
the city of New York, in relation to certain tax credits; to amend the
real property tax law, in relation to interim multiple dwellings in a
city with a population of one million or more; to amend the multiple
dwelling law, in relation to interim multiple dwellings in a city with
a population of one million or more; and providing for the repeal of
certain provisions of the multiple dwelling law upon expiration there-
of
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The opening paragraph of paragraph (a) of subdivision 1 of
2 section 489 of the real property tax law, as amended by chapter 244 of
3 the laws of 2006, is amended to read as follows:
4 Any city to which the multiple dwelling law is applicable, acting
5 through its local legislative body or other governing agency, is hereby
6 authorized and empowered, to and including [June] January first, two
7 thousand [eleven] fifteen, to adopt and amend local laws or ordinances
8 providing that any increase in assessed valuation of real property shall
9 be exempt from taxation for local purposes, as provided herein, to the
10 extent such increase results from:
11 § 2. The closing paragraph of subparagraph 6 of paragraph (a) of
12 subdivision 1 of section 489 of the real property tax law, as amended by
13 chapter 244 of the laws of 2006, is amended to read as follows:
14 Such conversion, alterations or improvements shall be completed within
15 [thirty-six] thirty months after the date on which same shall be started
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06204-04-3
S. 2320 2
1 except that such [thirty-six] thirty month limitation shall not apply to
2 conversions of residential units which are registered with the loft
3 board in accordance with article seven-C of the multiple dwelling law
4 pursuant to subparagraph one of this paragraph. Notwithstanding the
5 foregoing, a sixty month period for completion shall be available for
6 alterations or improvements undertaken by a housing development fund
7 company organized pursuant to article eleven of the private housing
8 finance law, which are carried out with the substantial assistance of
9 grants, loans or subsidies from any federal, state or local governmental
10 agency or instrumentality or which are carried out in a property trans-
11 ferred from such city if alterations and improvements are completed
12 within seven years after the date of transfer. In addition, the local
13 housing agency is hereby empowered to grant an extension of the period
14 of completion for any project carried out with the substantial assist-
15 ance of grants, loans or subsidies from any federal, state or local
16 governmental agency or instrumentality, if such alterations or improve-
17 ments are completed within sixty months from commencement of
18 construction. Provided, further, that such conversion, alterations or
19 improvements shall in any event be completed prior to [December thirty-
20 first] June thirtieth, two thousand [eleven] fifteen. Exemption for
21 conversions, alterations or improvements pursuant to subparagraph one,
22 two, three or four of this paragraph shall continue for a period not to
23 exceed fourteen years and begin no sooner than the first quarterly tax
24 bill immediately following the completion of such conversion, alter-
25 ations or improvements. Exemption for alterations or improvements pursu-
26 ant to this subparagraph or subparagraph five of this paragraph shall
27 continue for a period not to exceed thirty-four years and shall begin no
28 sooner than the first quarterly tax bill immediately following the
29 completion of such alterations or improvements. Such exemption shall be
30 equal to the increase in the valuation which is subject to exemption in
31 full or proportionally under this subdivision for ten or thirty years,
32 whichever is applicable. After such period of time, the amount of such
33 exempted assessed valuation of such improvements shall be reduced by
34 twenty percent in each succeeding year until the assessed value of the
35 improvements are fully taxable. Provided, however, exemption for any
36 conversion, alterations or improvements which are aided by a loan or
37 grant under article eight, eight-A, eleven, twelve, fifteen or twenty-
38 two of the private housing finance law, section six hundred ninety-six-a
39 or section ninety-nine-h of the general municipal law, or section three
40 hundred twelve of the housing act of nineteen hundred sixty-four (42
41 U.S.C.A. 1452b), or the Cranston-Gonzalez national affordable housing
42 act (42 U.S.C.A. 12701 et. seq.), or started after July first, nineteen
43 hundred eighty-three by a housing development fund company organized
44 pursuant to article eleven of the private housing finance law which are
45 carried out with the substantial assistance of grants, loans or subsi-
46 dies from any federal, state or local governmental agency or instrumen-
47 tality or which are carried out in a property transferred from any city
48 and where alterations and improvements are completed within seven years
49 after the date of transfer may commence at the beginning of any tax
50 quarter subsequent to the start of such conversion, alterations or
51 improvements and prior to the completion of such conversion, alterations
52 or improvements.
53 § 3. Section 489 of the real property tax law is amended by adding
54 four new subdivisions 17, 18, 19 and 20 to read as follows:
55 17. (a) For purposes of this subdivision, "substantial governmental
56 assistance" shall mean:
S. 2320 3
1 (i) grants, loans or subsidies from any federal, state or local agency
2 or instrumentality in furtherance of a program for the development of
3 affordable housing approved by the local housing agency, including,
4 without limitation, financing or insurance provided by the state of New
5 York mortgage agency of the New York city residential mortgage insurance
6 corporation; or
7 (ii) a written agreement between a housing development fund corpo-
8 ration and the local housing agency limiting the incomes of persons
9 entitled to purchase shares or rent housing accommodations therein.
10 (b) Any local law or ordinance providing for benefits pursuant to this
11 section must also provide the following with respect to conversions,
12 alterations or improvements completed on or after December thirty-first,
13 two thousand eleven:
14 (i) except as otherwise provided in this section with respect to
15 multiple dwellings, buildings and structures owned and operated either
16 by limited-profit housing companies established pursuant to article two
17 of the private housing finance law or redevelopment companies estab-
18 lished pursuant to article five of the private housing finance law, or
19 with respect to a group of multiple dwellings that was developed as a
20 planned community and that is owned as two separate condominiums
21 containing a total of ten thousand or more dwelling units, any multiple
22 dwelling, building or structure that is owned as a cooperative or a
23 condominium that has an average assessed value of thirty thousand
24 dollars or more per dwelling unit shall only be eligible for such bene-
25 fits if the alterations or improvements for which such multiple dwell-
26 ing, building or structure has applied for the benefits pursuant to this
27 section were carried out with substantial governmental assistance; and
28 (ii) no benefits pursuant to this section shall be granted for the
29 conversion of any non-residential building or structure into a class A
30 multiple dwelling unless such conversion was carried out with substan-
31 tial governmental assistance.
32 18. Any local law or ordinance providing for benefits pursuant to this
33 section must also provide, with respect to conversions, alterations or
34 improvements for which application was made after the effective date of
35 this subdivision, that if such conversions, alterations or improvements
36 are not completed on the date upon which such local housing agency
37 inspects the items of work claimed in such application, the local hous-
38 ing agency shall require the applicant to pay two times the actual cost
39 for any additional inspections needed to verify the completion of such
40 conversion, alteration or improvement.
41 19. The revocation of benefits granted to any multiple dwelling,
42 building or structure pursuant to this section shall not exempt any
43 dwelling unit therein from continued compliance with the requirements of
44 this section or of any local law or ordinance providing for benefits
45 pursuant to this section.
46 20. Notwithstanding the provisions of any general, special or local
47 law or any local ordinance providing for benefits pursuant to this
48 section the department may require that the applications for exemption
49 or abatement under this section that are filed on or after a date speci-
50 fied in such local law or ordinance be filed electronically.
51 § 4. Paragraph (a) of subdivision 1 of section 467-a of the real prop-
52 erty tax law, as added by chapter 273 of the laws of 1996, is amended to
53 read as follows:
54 (a) "Applicant" means the board of managers of a condominium or the
55 board of directors of a cooperative apartment corporation, provided
S. 2320 4
1 that, in addition, the commissioner of finance may by rule designate the
2 owner of a dwelling unit as an applicant.
3 § 5. Paragraphs (a) and (b) of subdivision 2 of section 467-a of the
4 real property tax law, as added by chapter 273 of the laws of 1996, are
5 amended to read as follows:
6 (a) In a city having a population of one million or more, dwelling
7 units owned by unit owners who, as of the applicable taxable status
8 date, own no more than three dwelling units in any one property held in
9 the condominium form of ownership, shall be eligible to receive a
10 partial abatement of real property taxes, as set forth in paragraphs (c)
11 [and], (d), (d-1), (d-2), (d-3), (d-4), (d-5) and (d-6) of this subdivi-
12 sion; provided, however, that a property held in the condominium form of
13 ownership that is receiving complete or partial real property tax
14 exemption or tax abatement pursuant to any other provision of this chap-
15 ter or any other state or local law, except as provided in paragraph (f)
16 of this subdivision, shall not be eligible to receive a partial abate-
17 ment pursuant to this section; and provided, further, that sponsors
18 shall not be eligible to receive a partial abatement pursuant to this
19 section; and provided, further, that in the fiscal year commencing in
20 calendar years two thousand twelve, two thousand thirteen, or two thou-
21 sand fourteen no more than a maximum of three dwelling units owned by
22 any unit owner in a single building, one of which must be the primary
23 residence of such unit owner, shall be eligible to receive a partial
24 abatement pursuant to paragraphs (d-1), (d-2), (d-3) and (d-4) of this
25 section.
26 (b) In a city having a population of one million or more, dwelling
27 units owned by tenant-stockholders who, as of the applicable taxable
28 status date, own no more than three dwelling units in any one property
29 held in the cooperative form of ownership, shall be eligible to receive
30 a partial abatement of real property taxes, as set forth in paragraphs
31 (c) [and], (d), (d-1), (d-2), (d-3), (d-4), (d-5) and (d-6) of this
32 subdivision; provided, however, that a property held in the cooperative
33 form of ownership that is receiving complete or partial real property
34 tax exemption or tax abatement pursuant to any other provision of this
35 chapter or any other state or local law, except as provided in paragraph
36 (f) of this subdivision, shall not be eligible to receive a partial
37 abatement pursuant to this section; and provided, further, that sponsors
38 shall not be eligible to receive a partial abatement pursuant to this
39 section; and provided, further, that in the fiscal year commencing in
40 calendar years two thousand twelve, two thousand thirteen or two thou-
41 sand fourteen no more than a maximum of three dwelling units owned by
42 any tenant-stockholder in a single building, one of which must be the
43 primary residence of such tenant-stockholder, shall be eligible to
44 receive a partial abatement pursuant to paragraphs (d-1), (d-2), (d-3)
45 and (d-4) of this section. For purposes of this section, a tenant-
46 stockholder of a cooperative apartment corporation shall be deemed to
47 own the dwelling unit which is represented by his or her shares of stock
48 in such corporation. Any abatement so granted shall be credited by the
49 appropriate taxing authority against the tax due on the property as a
50 whole. The reduction in real property taxes received thereby shall be
51 credited by the cooperative apartment corporation against the amount of
52 such taxes attributable to eligible dwelling units at the time of
53 receipt.
54 § 6. Intentionally omitted.
S. 2320 5
1 § 7. Subdivision 2 of section 467-a of the real property tax law is
2 amended by adding six new paragraphs (d-1), (d-2), (d-3), (d-4), (d-5)
3 and (d-6) to read as follows:
4 (d-1) In the fiscal years commencing in calendar year two thousand
5 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
6 ing units in property whose average unit assessed value is less than or
7 equal to fifty thousand dollars shall receive a partial abatement of the
8 real property taxes attributable to or due on such dwelling units of
9 twenty-five percent, twenty-six and one-half percent and twenty-eight
10 and one-tenth percent respectively.
11 (d-2) In the fiscal years commencing in calendar year two thousand
12 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
13 ing units in property whose average unit assessed value is more than
14 fifty thousand dollars, but less than or equal to fifty-five thousand
15 dollars, shall receive a partial abatement of the real property taxes
16 attributable to or due on such dwelling units of twenty-two and one-half
17 percent, twenty-three and eight-tenths percent and twenty-five and two-
18 tenths percent respectively.
19 (d-3) In the fiscal years commencing in calendar year two thousand
20 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
21 ing units in property whose average unit assessed value is more than
22 fifty-five thousand dollars, but less than or equal to sixty thousand
23 dollars, shall receive a partial abatement of the real property taxes
24 attributable to or due on such dwelling units of twenty percent, twen-
25 ty-one and two-tenths percent, and twenty-two and five-tenths percent
26 respectively.
27 (d-4) In the fiscal years commencing in calendar year two thousand
28 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
29 ing units in property whose average unit assessed value is more than
30 sixty thousand dollars shall receive a partial abatement of the real
31 property taxes attributable to or due on such dwelling units of seven-
32 teen and one-half percent.
33 (d-5) In the fiscal years commencing in calendar year two thousand
34 twelve and two thousand thirteen, dwelling units that received an abate-
35 ment pursuant to this section in the fiscal year commencing in calendar
36 year two thousand eleven, and that are not eligible to receive benefits
37 under paragraph (d-1), (d-2), (d-3), or (d-4) of this subdivision and
38 that are located in a property that has an average unit assessed value
39 that is less than or equal to fifteen thousand dollars shall receive a
40 partial abatement of the real property taxes attributable to or due on
41 such dwelling units of twelve and one half percent, and six and twenty-
42 five hundredths percent respectively. Provided, however, that no such
43 abatement shall be allowed for any fiscal year commencing in calendar
44 year two thousand fourteen or later.
45 (d-6) In the fiscal years commencing in calendar year two thousand
46 twelve and two thousand thirteen, dwelling units that received an abate-
47 ment pursuant to this section in the fiscal year commencing in calendar
48 year two thousand eleven, and that are not eligible to receive benefits
49 under paragraph (d-1), (d-2), (d-3), or (d-4) of this subdivision and
50 that are located in a property that has an average unit assessed value
51 that is greater than fifteen thousand dollars shall receive a partial
52 abatement of the real property taxes attributable to or due on such
53 dwelling units of eight and seventy-five hundredths percent, and four
54 and three hundred seventy-five thousandths percent respectively.
55 Provided, however, that no such abatement shall be allowed, for any
56 fiscal year in calendar year two thousand fourteen or later.
S. 2320 6
1 § 8. Paragraph (e) of subdivision 2 of section 467-a of the real prop-
2 erty tax law, as added by chapter 273 of the laws of 1996, is amended to
3 read as follows:
4 (e) Partial abatement pursuant to paragraphs (c) [and], (d), (d-1),
5 (d-2), (d-3), (d-4), (d-5) and (d-6) of this subdivision shall be
6 computed on the net real property taxes attributable to or due on eligi-
7 ble dwelling units after deduction for any exemption on such dwelling
8 units received pursuant to any section listed in paragraph (f) of this
9 subdivision and after deduction of the portion of any abatement received
10 pursuant to section four hundred eighty-nine of this article that is
11 attributable to a dwelling unit in property held in the cooperative form
12 of ownership and after deduction of any abatement received pursuant to
13 section four hundred eighty-nine of this article by a dwelling unit in
14 property held in the condominium form of ownership.
15 § 9. Paragraphs (a), (b) and (c) of subdivision 3 of section 467-a of
16 the real property tax law, paragraphs (a) and (c) as amended by chapter
17 109 of the laws of 2008 and paragraph (b) as amended by section 6 of
18 part LL of chapter 407 of the laws of 1999, are amended to read as
19 follows:
20 (a) An application for an abatement pursuant to this section for the
21 fiscal year commencing in calendar year nineteen hundred ninety-six
22 shall be made no later than the fifteenth day of September, nineteen
23 hundred ninety-six. An application for an abatement pursuant to this
24 section for the fiscal year commencing in calendar year nineteen hundred
25 ninety-seven shall be made no later than the first day of April, nine-
26 teen hundred ninety-seven. An application for an abatement pursuant to
27 this section for the fiscal year commencing in calendar year nineteen
28 hundred ninety-eight shall be made no later than the first day of April,
29 nineteen hundred ninety-eight. An application for an abatement pursuant
30 to this section for the fiscal year commencing in calendar year nineteen
31 hundred ninety-nine shall be made in accordance with this subdivision
32 and subdivision three-a of this section. An application for an abatement
33 pursuant to this section for the fiscal year commencing in calendar year
34 two thousand shall be made no later than the fifteenth day of February,
35 two thousand. An application for an abatement pursuant to this section
36 for the fiscal year commencing in calendar year two thousand one shall
37 be made in accordance with this subdivision and subdivision three-b of
38 this section. An application for an abatement pursuant to this section
39 for the fiscal year commencing in calendar year two thousand two shall
40 be made no later than the fifteenth day of February, two thousand two.
41 An application for an abatement pursuant to this section for the fiscal
42 year commencing in calendar year two thousand three shall be made no
43 later than the fifteenth day of February, two thousand three. An appli-
44 cation for an abatement pursuant to this section for the fiscal year
45 commencing in calendar year two thousand four shall be made in accord-
46 ance with this subdivision and subdivision three-c of this section. An
47 application for an abatement pursuant to this section for the fiscal
48 year commencing in calendar year two thousand five shall be made no
49 later than the fifteenth day of February, two thousand five. An applica-
50 tion for an abatement pursuant to this section for the fiscal year
51 commencing in calendar year two thousand six shall be made no later than
52 the fifteenth day of February, two thousand six. An application for an
53 abatement pursuant to this section for the fiscal year commencing in
54 calendar year two thousand seven shall be made no later than the
55 fifteenth day of February, two thousand seven. An application for abate-
56 ment pursuant to this section for the fiscal year commencing in calendar
S. 2320 7
1 year two thousand eight shall be made in accordance with this subdivi-
2 sion and subdivision three-d of this section. An application for an
3 abatement pursuant to this section for the fiscal year commencing in
4 calendar year two thousand nine shall be made no later than the
5 fifteenth day of February, two thousand nine. An application for an
6 abatement pursuant to this section for the fiscal year commencing in
7 calendar year two thousand ten shall be made no later than the fifteenth
8 day of February, two thousand ten. An application for an abatement
9 pursuant to this section for the fiscal year commencing in calendar year
10 two thousand eleven shall be made no later than the fifteenth day of
11 February, two thousand eleven. An application for an abatement pursuant
12 to this section for the fiscal years commencing in calendar years two
13 thousand twelve and two thousand thirteen shall be made in accordance
14 with subdivision three-e of this section. The date or dates by which
15 applications for an abatement pursuant to this section shall be made for
16 the fiscal year beginning in calendar year two thousand fourteen shall
17 be established by the commissioner of finance by rule, provided that
18 such date or dates shall not be later than the fifteenth day of February
19 for such calendar year.
20 (b) An application for an abatement pursuant to this section shall be
21 submitted to the commissioner of finance by the board of managers of a
22 condominium or the board of directors of a cooperative apartment corpo-
23 ration, provided that the commissioner of finance may by rule require
24 the owner of a dwelling unit to submit an application to supplement
25 information contained in the application submitted by the board of
26 managers of a condominium or the board of directors of a cooperative
27 apartment corporation and may by rule apply and adjust, as appropriate,
28 any provisions of this section that relate to applications submitted by
29 such boards to applications submitted by such owners.
30 (c) No abatement pursuant to this section shall be granted unless the
31 applicant files an application for an abatement within the time periods
32 prescribed in paragraph (a) of this subdivision or subdivision three-a,
33 three-b, three-c [or], three-d or three-e of this section, provided,
34 however, that the commissioner of finance may, for good cause shown,
35 extend the time for filing an application.
36 § 10. Section 467-a of the real property tax law is amended by adding
37 a new subdivision 3-e to read as follows:
38 3-e. (a) An applicant whose property did not receive an abatement
39 pursuant to this section for the fiscal year commencing in calendar year
40 two thousand eleven shall submit an application for an abatement pursu-
41 ant to this section for the fiscal years commencing in calendar years
42 two thousand twelve and two thousand thirteen in accordance with para-
43 graph (e) of this subdivision.
44 (b) The abatement for the fiscal year commencing in calendar year two
45 thousand twelve of a cooperative apartment corporation that received an
46 abatement pursuant to this section for the fiscal year commencing in
47 calendar year two thousand eleven and that submitted an information
48 return on or before February fifteenth, two thousand twelve, that
49 included an election by the board of directors of such cooperative
50 apartment corporation that such information return be deemed an applica-
51 tion for an abatement pursuant to this section for such fiscal year,
52 shall be based on the information contained in such information return.
53 (c) The abatement for the fiscal year commencing in calendar year two
54 thousand twelve of a cooperative apartment corporation that received an
55 abatement pursuant to this section for the fiscal year commencing in
56 calendar year two thousand eleven and that submitted an information
S. 2320 8
1 return on or before February fifteenth, two thousand twelve, that did
2 not include an election by the board of directors of such cooperative
3 apartment corporation that such information return be deemed an applica-
4 tion for an abatement pursuant to this section for such fiscal year,
5 shall be based on the information contained in the application submitted
6 in two thousand eleven or on the information contained in such informa-
7 tion return, or both, provided that nothing in this paragraph shall
8 authorize or require the commissioner of finance to grant an abatement
9 with respect to a property or a dwelling unit that is not eligible as of
10 the applicable taxable status date for the fiscal year commencing in
11 calendar year two thousand twelve.
12 (d) The board of managers of a condominium that received an abatement
13 pursuant to this section for the fiscal year commencing in calendar year
14 two thousand eleven shall submit an application for an abatement pursu-
15 ant to this section for the fiscal year commencing in calendar year two
16 thousand twelve no later than sixty days following the effective date of
17 the chapter of the laws of two thousand thirteen that added this subdi-
18 vision. If such board of managers does not submit such application
19 within sixty days following the effective date of the chapter of the
20 laws of two thousand thirteen that added this subdivision, then the
21 abatement for the fiscal year commencing in calendar year two thousand
22 twelve for such condominium shall be based on the information contained
23 in the application submitted in two thousand eleven, provided that noth-
24 ing in this paragraph shall authorize or require the commissioner of
25 finance to grant an abatement with respect to a property or a dwelling
26 unit that is not eligible as of the applicable taxable status date for
27 the fiscal year commencing in calendar year two thousand twelve.
28 (e) Notwithstanding paragraphs (a), (b), (c) and (d) of this subdivi-
29 sion or any other inconsistent provision of law, the commissioner of
30 finance may require each applicant for an abatement for the fiscal years
31 commencing in calendar years two thousand twelve and two thousand thir-
32 teen to submit an application by a date and in a form determined by such
33 commissioner and such commissioner may deny abatements pursuant to this
34 section for failure to submit such application by such date provided
35 that such date shall be no earlier than thirty days following the date
36 on which the commissioner releases the application form.
37 § 11. Subdivision 8 of section 467-a of the real property tax law, as
38 amended by chapter 453 of the laws of 2011, is amended to read as
39 follows:
40 8. Except to the extent that the owner of a dwelling unit of a proper-
41 ty situated in a city having a population of one million or more may
42 request a redacted copy of any application or statements pertaining to
43 such dwelling unit, as provided in subdivision four of this section, the
44 information contained in applications or statements in connection there-
45 with filed with the commissioner of finance pursuant to subdivision
46 three, three-a, three-b [or], three-c, three-d or three-e of this
47 section shall not be subject to disclosure under article six of the
48 public officers law.
49 § 12. Section 11-1706 of the administrative code of the city of New
50 York is amended by adding a new subdivision (f) to read as follows:
51 (f) Credit for general corporation tax paid. (1) A city resident
52 individual, estate or trust whose city adjusted gross income includes a
53 pro rata share of income, loss and deductions described in paragraph one
54 of subsection (a) of section thirteen hundred sixty-six of the internal
55 revenue code, from one or more New York S corporations as defined in
56 subdivision one-A of section two hundred eight of the tax law, or from
S. 2320 9
1 one or more QSSSs as defined in subdivision one-B of section two hundred
2 eight of the tax law, that are exempt QSSSs by reason of clause (A) of
3 subparagraph one of paragraph (k) of subdivision nine of section two
4 hundred eight of the tax law, on which a tax is imposed by subchapter
5 two of chapter six of this title, shall be allowed a credit as provided
6 in paragraph two of this subdivision against the tax otherwise due under
7 sections 11-1701, 11-1703, 11-1704 and 11-1704.1 of this chapter.
8 (2)(A) Subject to the limitations set forth in subparagraphs (B) and
9 (C) of this paragraph, the credit allowed to a taxpayer for a taxable
10 year under this subdivision shall be determined as follows:
11 (i) For taxable years beginning on or after January first, two thou-
12 sand fourteen and before July first, two thousand fifteen:
13 (I) If the city taxable income is thirty-five thousand dollars or
14 less, the amount of the credit shall be one hundred percent of the
15 amount determined in paragraph three of this subdivision.
16 (II) If the city taxable income is greater than thirty-five thousand
17 dollars but less than one hundred thousand dollars, the amount of the
18 credit shall be a percentage of the amount determined in paragraph three
19 of this subdivision, such percentage to be determined by subtracting
20 from one hundred percent, a percentage determined by subtracting thir-
21 ty-five thousand dollars from city taxable income, dividing the result
22 by sixty-five thousand dollars and multiplying by one hundred percent.
23 (III) If the city taxable income is one hundred thousand dollars or
24 greater, no credit shall be allowed.
25 (IV) Provided further that for any taxable year of a taxpayer for
26 which this credit is effective that encompasses days occurring after
27 June thirtieth, two thousand fifteen, the amount of the credit deter-
28 mined in item (I) or (II) of this clause shall be multiplied by a frac-
29 tion, the numerator of which is the number of days in the taxpayer's
30 taxable year occurring on or before June thirtieth, two thousand
31 fifteen, and the denominator of which is the number of days in the
32 taxpayer's taxable year.
33 (B) Notwithstanding anything to the contrary in subparagraph (A) of
34 this paragraph, the credit allowed to a taxpayer for a taxable year
35 under this subdivision shall not exceed the sum of the taxes that would
36 otherwise be imposed by sections 11-1701, 11-1703, 11-1704 and 11-1704.1
37 of this chapter on such taxpayer for such taxable year after the allow-
38 ance of any other credits allowed by subdivisions (a) and (b) of this
39 section, and subdivision (c) of this section, as added by chapter four
40 hundred eighty-one of the laws of nineteen hundred ninety-seven and
41 subsequently amended, and section 11-1721 of this chapter.
42 (C) Notwithstanding anything to the contrary in subparagraph (A) of
43 this paragraph, no credit shall be allowed for any amount of tax
44 imposed, or credit allowed, by subchapter two of chapter six of this
45 title on, or to, a combined group of corporations including a New York S
46 corporation or an exempt QSSS, except where the combined group consists
47 exclusively of one or more New York S corporations and one or more
48 exempt QSSSs of such corporations as described in paragraph one of this
49 subdivision, provided that each of the New York S corporations included
50 in the group is wholly owned by the same interests and in the same
51 proportions as each other New York S corporation included in the group.
52 (3) Subject to the provisions of subparagraph (B) of this paragraph
53 and subparagraph (C) of paragraph two of this subdivision, the amount
54 determined in this paragraph is the sum of the taxpayer's pro rata share
55 of the amounts determined in subparagraph (A) of this paragraph for each
56 New York S corporation, or exempt QSSS, described in paragraph one of
S. 2320 10
1 this subsection, a pro rata share of whose income, loss and deductions
2 described in paragraph one of subsection (a) of section thirteen hundred
3 sixty-six of the internal revenue code, is included in the taxpayer's
4 city adjusted gross income.
5 (A) The amount determined in this subparagraph is the sum of:
6 (i) the taxes imposed by subchapter two of chapter six of this title
7 on such corporation, or a combined group including such corporation, for
8 its taxable year ending within or with the taxable year of the taxpayer
9 and paid by such corporation, or combined group; and
10 (ii) the amount of any credit or credits taken by such corporation, or
11 a combined group including such corporation, under subdivision eighteen
12 of section 11-604 of this title for its taxable year ending within or
13 with the taxable year of the taxpayer.
14 (B) For purposes of this subdivision, the taxpayer's pro rata share of
15 the amount in subparagraph (A) of this paragraph for the taxable year
16 shall be the amount determined with respect to the taxpayer:
17 (i) by assigning an equal portion of the amount in subparagraph (A) of
18 this paragraph to each day of the corporation's taxable year on which
19 the corporation has shares outstanding,
20 (ii) then by dividing that portion pro rata among the shares outstand-
21 ing on that day; provided, however,
22 (iii) if the taxable year of such corporation for purposes of chapter
23 six of this title is different from its New York S year or S short year
24 as defined in subdivision one-A of section two hundred eight of the tax
25 law, or subsection (f) of section fourteen hundred fifty of the tax law,
26 only those portions that are assigned to days of the taxable year that
27 are also days of the New York S year or S short year shall be taken into
28 account in determining the shareholder's pro rata share of the amount
29 determined in subparagraph (A) of this paragraph.
30 § 13. If any provision of section twelve of this act is adjudged by
31 any court of competent jurisdiction to be invalid or unconstitutional,
32 the credit provided for in such sections shall not be allowed for any
33 tax period or periods with respect to which such judgment is in effect.
34 § 14. The provisions of subdivision (c) of section 11-245 of the
35 administrative code of the city of New York shall not be applicable to
36 any multiple dwelling located on lots numbered 13 and 14 of Manhattan
37 block numbered 51, lots numbered 17, 18, and 21 of Manhattan block
38 number 90, lots numbered 7, 8, 10, 11, 57 and 111 of Manhattan block
39 numbered 1010, and lots numbered 33, 34 and 35 of Manhattan block
40 numbered 1259 as such lots and blocks are numbered as of the date this
41 act shall have become law, provided that the construction of such multi-
42 ple dwellings on those lots commences on or after January 1, 2007, and
43 on or before June 21, 2017, and provided that for all such multiple
44 dwellings the department of housing preservation and development of New
45 York City shall impose a requirement and either certify (i) that twenty
46 percent of the units on site are affordable to households of low and
47 moderate income pursuant to subdivision 7 of section 421-a of the real
48 property tax law, or (ii) the requirements of subdivision 12 of section
49 421-a of the real property tax law are met. The provisions of subdivi-
50 sion (c) of section 11-245 of the administrative code of the city of New
51 York shall not be applicable to any multiple dwelling that is located on
52 lot 10 of Manhattan block number 123, as such lot and block are numbered
53 as of the date this act shall have become law, provided that
54 construction of such multiple dwelling commenced on or after January 1,
55 2007, and on or before June 21, 2012, and provided further that the
56 individual or agent thereof seeking benefits pursuant to section 421-a
S. 2320 11
1 of the real property tax law enters into and fulfills the requirements
2 of a memorandum of understanding with the city of New York Department of
3 Housing Preservation and Development to fund in an amount not less than
4 $9 million the construction of affordable rental housing within the City
5 of New York, provided, however, that such amount required shall be
6 reduced by the value of negotiable certificates that the individual or
7 agent thereof seeking benefits purchased, pursuant to section 6-08 of
8 title 28 of the rules of the city of New York as such rules existed as
9 of the date this act shall have become law, in order to entitle such
10 multiple dwelling to the benefits pursuant to section 421-a of the real
11 property tax law for a specified number of units in the geographic
12 exclusion area, provided that such negotiable certificates were gener-
13 ated by a written agreement with the Department of Housing Preservation
14 and Development, and provided further that, notwithstanding any other
15 provision of law, benefits granted pursuant to section 421-a of the real
16 property tax law for such multiple dwelling shall be granted as if
17 construction commenced on June 21, 2012. For the construction of any
18 multiple dwelling on the above referenced lots, with the exception of
19 lots numbered 17, 18 and 21 of Manhattan block numbered 90, which
20 receives benefits pursuant to section 421-a of the real property tax
21 law, any work which may involve the employment of laborers, workers or
22 mechanics shall be considered public work for the purposes of article
23 eight of the labor law, and any contracts or subcontracts which may
24 involve the employment of laborers, workers or mechanics shall be
25 enforceable under article eight of the labor law, provided, however,
26 that such provisions shall not apply to construction performed pursuant
27 to a project labor agreement that is a pre-hire collective bargaining
28 agreement governing the terms and conditions of employment entered into
29 by a construction user and/or its representative and a bona fide build-
30 ing and construction trade labor organization establishing the labor
31 organization as the collective bargaining representative for laborers,
32 workers and mechanics.
33 § 15. Subparagraph (i) of paragraph (a) of subdivision 2 of section
34 421-a of the real property tax law, as amended by section 38 of part B
35 of chapter 97 of the laws of 2011, is amended to read as follows:
36 (i) Within a city having a population of one million or more, new
37 multiple dwellings, except hotels, shall be exempt from taxation for
38 local purposes, other than assessments for local improvements, for the
39 tax year or years immediately following taxable status dates occurring
40 subsequent to the commencement and prior to the completion of
41 construction, but not to exceed three such tax years, [except for new
42 multiple dwellings the construction of which commenced between January
43 first, two thousand seven, and June thirtieth, two thousand nine, shall
44 have an additional thirty-six months to complete construction and shall
45 be eligible for full exemption from taxation for the first three years
46 of the period of construction; any eligible project that seeks to
47 utilize the six-year period of construction authorized by this section
48 must apply for a preliminary certificate of eligibility within one year
49 of the effective date of the rent act of 2011, provided, however that
50 such multiple dwellings shall be eligible for a maximum of three years
51 of benefits during the construction period,] and shall continue to be
52 exempt from such taxation in tax years immediately following the taxable
53 status date first occurring after the expiration of the exemption herein
54 conferred during construction so long as used at the completion of
55 construction for dwelling purposes for a period not to exceed ten years
S. 2320 12
1 in the aggregate after the taxable status date immediately following the
2 completion thereof, as follows:
3 (A) except as otherwise provided herein there shall be full exemption
4 from taxation during the period of construction or the period of three
5 years immediately following commencement of construction, whichever
6 expires sooner, [except for new multiple dwellings the construction of
7 which commenced between January first, two thousand seven, and June
8 thirtieth, two thousand nine, shall have an additional thirty-six months
9 to complete construction and shall be eligible for full exemption from
10 taxation for the first three years of the period of construction; any
11 eligible project that seeks to utilize the six-year period of
12 construction authorized by this section must apply for a preliminary
13 certificate of eligibility within one year of the effective date of the
14 rent act of 2011, provided, however that such multiple dwellings shall
15 be eligible for a maximum of three years of benefits during the
16 construction period,] and for two years following such period;
17 (B) followed by two years of exemption from eighty per cent of such
18 taxation;
19 (C) followed by two years of exemption from sixty per cent of such
20 taxation;
21 (D) followed by two years of exemption from forty per cent of such
22 taxation;
23 (E) followed by two years of exemption from twenty per cent of such
24 taxation;
25 The following table shall illustrate the computation of the tax
26 exemption:
27 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
28 Exemption
29 During Construction (maximum three years)[; 100%
30 except construction commenced between January
31 first, two thousand seven and June
32 thirtieth, two thousand nine (maximum
33 three years)]
34 Following completion of work
35 Year:
36 1 100%
37 2 100
38 3 80
39 4 80
40 5 60
41 6 60
42 7 40
43 8 40
44 9 20
45 10 20
46 § 16. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision
47 2 of section 421-a of the real property tax law, as amended by section
48 39 of part B of chapter 97 of the laws of 2011, is amended to read as
49 follows:
50 (A) Within a city having a population of one million or more the local
51 housing agency may adopt rules and regulations providing that except in
52 areas excluded by local law new multiple dwellings, except hotels, shall
S. 2320 13
1 be exempt from taxation for local purposes, other than assessments for
2 local improvements, for the tax year or years immediately following
3 taxable status dates occurring subsequent to the commencement and prior
4 to the completion of construction, but not to exceed three such tax
5 years, [except for new multiple dwellings the construction of which
6 commenced between January first, two thousand seven, and June thirtieth,
7 two thousand nine, shall have an additional thirty-six months to
8 complete construction and shall be eligible for full exemption from
9 taxation for the first three years of the period of construction; any
10 eligible project that seeks to utilize the six-year period of
11 construction authorized by this section must apply for a preliminary
12 certificate of eligibility within one year of the effective date of the
13 rent act of 2011, provided, however that such multiple dwellings shall
14 be eligible for a maximum of three years of benefits during the
15 construction period,] and shall continue to be exempt from such taxation
16 in tax years immediately following the taxable status date first occur-
17 ring after the expiration of the exemption herein conferred during such
18 construction so long as used at the completion of construction for
19 dwelling purposes for a period not to exceed fifteen years in the aggre-
20 gate, as follows:
21 a. except as otherwise provided herein there shall be full exemption
22 from taxation during the period of construction or the period of three
23 years immediately following commencement of construction, whichever
24 expires sooner, [except for new multiple dwellings the construction of
25 which commenced between January first, two thousand seven, and June
26 thirtieth, two thousand nine, shall have an additional thirty-six months
27 to complete construction and shall be eligible for full exemption from
28 taxation for the first three years of the period of construction; any
29 eligible project that seeks to utilize the six-year period of
30 construction authorized by this section must apply for a preliminary
31 certificate of eligibility within one year of the effective date of the
32 rent act of 2011, provided, however that such multiple dwellings shall
33 be eligible for a maximum of three years of benefits during the
34 construction period,] and for eleven years following such period;
35 b. followed by one year of exemption from eighty percent of such taxa-
36 tion;
37 c. followed by one year of exemption from sixty percent of such taxa-
38 tion;
39 d. followed by one year of exemption from forty percent of such taxa-
40 tion;
41 e. followed by one year of exemption from twenty percent of such taxa-
42 tion.
43 § 17. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
44 2 of section 421-a of the real property tax law, as amended by section
45 40 of part B of chapter 97 of the laws of 2011, is amended to read as
46 follows:
47 (A) Within a city having a population of one million or more the local
48 housing agency may adopt rules and regulations providing that new multi-
49 ple dwellings, except hotels, shall be exempt from taxation for local
50 purposes, other than assessments for local improvements, for the tax
51 year or years immediately following taxable status dates occurring
52 subsequent to the commencement and prior to the completion of
53 construction, but not to exceed three such tax years, [except for new
54 multiple dwellings the construction of which commenced between January
55 first, two thousand seven, and June thirtieth, two thousand nine, shall
56 have an additional thirty-six months to complete construction and shall
S. 2320 14
1 be eligible for full exemption from taxation for the first three years
2 of the period of construction; any eligible project that seeks to
3 utilize the six-year period of construction authorized by this section
4 must apply for a preliminary certificate of eligibility within one year
5 of the effective date of the rent act of 2011, provided, however that
6 such multiple dwellings shall be eligible for a maximum of three years
7 of benefits during the construction period,] and shall continue to be
8 exempt from such taxation in tax years immediately following the taxable
9 status date first occurring after the expiration of the exemption herein
10 conferred during such construction so long as used at the completion of
11 construction for dwelling purposes for a period not to exceed twenty-
12 five years in the aggregate, provided that the area in which the project
13 is situated is a neighborhood preservation program area as determined by
14 the local housing agency as of June first, nineteen hundred eighty-five,
15 or is a neighborhood preservation area as determined by the New York
16 city planning commission as of June first, nineteen hundred eighty-five,
17 or is an area that was eligible for mortgage insurance provided by the
18 rehabilitation mortgage insurance corporation as of May first, nineteen
19 hundred ninety-two or is an area receiving funding for a neighborhood
20 preservation project pursuant to the neighborhood reinvestment corpo-
21 ration act (42 U.S.C. §§180 et seq.) as of June first, nineteen hundred
22 eighty-five, as follows:
23 a. except as otherwise provided herein there shall be full exemption
24 from taxation during the period of construction or the period of three
25 years immediately following commencement of construction, whichever
26 expires sooner, [except for new multiple dwellings the construction of
27 which commenced between January first, two thousand seven, and June
28 thirtieth, two thousand nine, shall have an additional thirty-six months
29 to complete construction and shall be eligible for full exemption from
30 taxation for the first three years of the period of construction; any
31 eligible project that seeks to utilize the six-year period of
32 construction authorized by this section must apply for a preliminary
33 certificate of eligibility within one year of the effective date of the
34 rent act of 2011, provided, however that such multiple dwellings shall
35 be eligible for a maximum of three years of benefits during the
36 construction period,] and for twenty-one years following such period;
37 b. followed by one year of exemption from eighty percent of such taxa-
38 tion;
39 c. followed by one year of exemption from sixty percent of such taxa-
40 tion;
41 d. followed by one year of exemption from forty percent of such taxa-
42 tion;
43 e. followed by one year of exemption from twenty percent of such taxa-
44 tion.
45 § 18. Subdivision 7 of section 467-a of the real property tax law, as
46 added by chapter 273 of the laws of 1996, is amended to read as follows:
47 7. The commissioner of finance shall be authorized to promulgate rules
48 necessary to effectuate the purposes of this section. Notwithstanding
49 any other provision of law to the contrary, such rules may include, but
50 need not be limited to, denial, termination or revocation of any abate-
51 ment pursuant to this section if any dwelling unit in a property held in
52 the condominium form of ownership or a property held in the cooperative
53 form of ownership has real property taxes, water and sewer charges,
54 payments in lieu of taxes or other municipal charges due and owing,
55 unless such real property taxes, water and sewer charges, payments in
56 lieu of taxes or other municipal charges are currently being paid in
S. 2320 15
1 timely installments pursuant to a written agreement with the department
2 of finance or other appropriate agency.
3 § 19. Subdivision 8 of section 467-a of the real property tax law, as
4 amended by chapter 453 of the laws of 2011, is amended to read as
5 follows:
6 8. Except to the extent that the owner of a dwelling unit of a proper-
7 ty situated in a city having a population of one million or more may
8 request a redacted copy of any application or statements pertaining to
9 such dwelling unit, as provided in subdivision four of this section, the
10 information contained in applications or statements in connection there-
11 with filed with the commissioner of finance pursuant to subdivision
12 three, three-a, three-b [or], three-c, three-d or three-e of this
13 section shall not be subject to disclosure under article six of the
14 public officers law.
15 § 20. Section 467-a of the real property tax law is amended by adding
16 a new subdivision 9 to read as follows:
17 9. The commissioner of finance shall be authorized to prepare and
18 submit amended tax bills to taxpayers to reflect any adjustments neces-
19 sary to apply the partial abatement received pursuant to this section.
20 If a condominium or cooperative has paid an amount that is different
21 than the amount due on any amended tax bill, the commissioner of finance
22 may waive any interest otherwise due on such amount.
23 § 21. Subdivision 5 of section 281 of the multiple dwelling law, as
24 amended by chapter 139 of the laws of 2011, is amended to read as
25 follows:
26 5. Notwithstanding the provisions of paragraphs (i), (iii) and (iv) of
27 subdivision two of this section, but subject to paragraphs (i) and (ii)
28 of subdivision one of this section and paragraph (ii) of subdivision two
29 of this section, the term "interim multiple dwelling" shall include
30 buildings, structures or portions thereof that are located in a city of
31 more than one million persons which were occupied for residential
32 purposes as the residence or home of any three or more families living
33 independently from one another for a period of twelve consecutive months
34 during the period commencing January first, two thousand eight, and
35 ending December thirty-first, two thousand nine, provided that the unit:
36 is not located in a basement or cellar and has at least one entrance
37 that does not require passage through another residential unit to obtain
38 access to the unit, has at least one window opening onto a street or a
39 lawful yard or court as defined in the zoning resolution for such muni-
40 cipality, and is at least [five hundred fifty] four hundred square feet
41 in area. The term "interim multiple dwelling" as used in this subdivi-
42 sion shall not include (i) any building in an industrial business zone
43 established pursuant to chapter six-D of title twenty-two of the admin-
44 istrative code of the city of New York except that a building in the
45 Williamsburg/Greenpoint or North Brooklyn industrial business zones and
46 a building located in that portion of the Long Island city industrial
47 business zone that has frontage on either side of forty-seventh avenue
48 or is located north of forty-seventh avenue and south of Skillman avenue
49 or in that portion of the Long Island city industrial business zone that
50 is located north of forty-fourth drive, south of Queens plaza north, and
51 west of twenty-third street may be included in the term "interim multi-
52 ple dwelling," or (ii) units in any building, other than a building that
53 is already defined as an "interim multiple dwelling" pursuant to subdi-
54 vision one, two, three or four of this section, that, at the time this
55 subdivision shall take effect and continuing at the time of the
56 submission of an application for coverage by any party, also contains a
S. 2320 16
1 use actively and currently pursued, which use is set forth in use groups
2 fifteen through eighteen, as described in the zoning resolution of such
3 municipality in effect on June twenty-first, two thousand ten, and which
4 the loft board has determined in rules and regulation is inherently
5 incompatible with residential use in the same building, provided that
6 the loft board may by rule exempt categories of units or buildings from
7 such use incompatibility determinations including but not limited to
8 residentially occupied units or subcategories of such units, and
9 provided, further that if a building does not contain such active uses
10 at the time this subdivision takes effect, no subsequent use by the
11 owner of the building shall eliminate the protections of this section
12 for any residential occupants in the building already qualified for such
13 protections. The term "interim multiple dwelling," as used in this
14 subdivision shall also include buildings, structures or portions thereof
15 that are located north of West 24th Street and south of West 27th Street
16 and west of tenth avenue and east of eleventh avenue in a city of more
17 than one million persons which were occupied for residential purposes as
18 the residence or home of any two or more families living independently
19 from one another for a period of twelve consecutive months during the
20 period commencing January first, two thousand eight, and ending December
21 thirty-first, two thousand nine and subject to all the conditions and
22 limitations of this subdivision other than the number of units in the
23 building. A reduction in the number of occupied residential units in a
24 building after meeting the aforementioned twelve consecutive month
25 requirement shall not eliminate the protections of this section for any
26 remaining residential occupants qualified for such protections. Non-re-
27 sidential space in a building as of the effective date of this subdivi-
28 sion shall be offered for residential use only after the obtaining of a
29 residential certificate of occupancy for such space and such space shall
30 be exempt from this article, even if a portion of such building may be
31 an interim multiple dwelling.
32 § 22. Subdivision 2 of section 286 of the multiple dwelling law, as
33 amended by chapter 414 of the laws of 1999, subparagraphs (A) and (B) of
34 paragraph (ii) and paragraph (iii) as amended by chapter 135 of the laws
35 of 2010, is amended to read as follows:
36 2. (i) Prior to compliance with safety and fire protection standards
37 of article seven-B of this chapter, residential occupants qualified for
38 protection pursuant to this article shall be entitled to continued occu-
39 pancy, provided that the unit is their primary residence, and shall pay
40 the same rent, including escalations, specified in their lease or rental
41 agreement to the extent to which such lease or rental agreement remains
42 in effect or, in the absence of a lease or rental agreement, the same
43 rent most recently paid and accepted by the owner; if there is no lease
44 or other rental agreement in effect, rent adjustments prior to article
45 seven-B compliance shall be in conformity with guidelines to be set by
46 the loft board for such residential occupants within six months from the
47 effective date of this article.
48 (ii) In addition to any rent adjustment pursuant to paragraph (i) of
49 this subdivision, on or after June twenty-first, nineteen hundred nine-
50 ty-two, the rent for residential units in interim multiple dwellings
51 that are not yet in compliance with the requirements of subdivision one
52 of section two hundred eighty-four of this article shall be adjusted as
53 follows:
54 (A) Upon the owners' filing of an alteration application, as required
55 by paragraph (ii), (iii), (iv), (v), or (vi) of subdivision one of
56 section two hundred eighty-four of this article, an adjustment equal to
S. 2320 17
1 [six] three percent of the rent in effect at the time the owner files
2 the alteration application.
3 (B) Upon obtaining an alteration permit, as required by paragraph
4 (ii), (iii), (iv), (v), or (vi) of subdivision one of section two
5 hundred eighty-four of this article, an adjustment equal to [eight]
6 three percent of the rent in effect at the time the owner obtains the
7 alteration permit.
8 (C) Upon achieving compliance with the standards of safety and fire
9 protection set forth in article seven-B of this chapter for the residen-
10 tial portions of the building, an adjustment equal to [six] four percent
11 of the rent in effect at the time the owner achieves such compliance.
12 (D) Owners who filed an alteration application prior to the effective
13 date of this subparagraph shall be entitled to a prospective adjustment
14 equal to six percent of the rent on the effective date of this subpara-
15 graph.
16 (E) Owners who obtained an alteration permit prior to June twenty-
17 first, nineteen hundred ninety-two shall be entitled to a prospective
18 adjustment equal to fourteen percent of the rent on June twenty-first,
19 nineteen hundred ninety-two.
20 (F) Owners who achieved compliance with the standards of safety and
21 fire protection set forth in article seven-B of this chapter for the
22 residential portions of the building prior to June twenty-first, nine-
23 teen hundred ninety-two shall be entitled to a prospective adjustment
24 equal to twenty percent of the rent on June twenty-first, nineteen
25 hundred ninety-two.
26 (iii) Any rent adjustments pursuant to paragraph (ii) of this subdivi-
27 sion shall not apply to units which were rented at market value after
28 June twenty-first, nineteen hundred eighty-two and prior to June twen-
29 ty-first, nineteen hundred ninety-two. This paragraph shall not apply to
30 units made subject to this article by subdivision five of section two
31 hundred eighty-one of this article.
32 (iv) Payment of any rent adjustments pursuant to paragraph (ii) of
33 this subdivision shall commence the month immediately following the
34 month in which the act entitling the owner to the adjustment occurred.
35 § 23. Subdivision 2 of section 285 of the multiple dwelling law, as
36 amended by chapter 135 of the laws of 2010, is amended to read as
37 follows:
38 2. Notwithstanding any other provision of this article, an owner may
39 apply to the loft board for exemption of a building or portion thereof
40 from this article on the basis that compliance with this article in
41 obtaining a legal residential certificate of occupancy would cause an
42 unjustifiable hardship either because: (i) it would cause an unreason-
43 ably adverse impact on a non-residential conforming use tenant within
44 the building or (ii) the cost of compliance renders legal residential
45 conversion infeasible. Residential and other tenants shall be given not
46 less than sixty days notice in advance of the hearing date for such
47 application. If the loft board approves such application, the building
48 or portion thereof shall be exempt from this article, and may be
49 converted to non-residential conforming uses, provided, however, that
50 the owner shall, as a condition of approval of such application, agree
51 to file an irrevocable recorded covenant in form satisfactory to the
52 loft board enforceable for fifteen years by the municipality, that the
53 building will not be re-converted to residential uses during such time.
54 The standard for granting such hardship application for a building or
55 portion thereof shall be as follows: (a) the loft board shall only grant
56 the minimum relief necessary to relieve any alleged hardship with the
S. 2320 18
1 understanding if compliance is reasonably possible it should be achieved
2 even if it requires alteration of units, relocation of tenants to vacant
3 space within the building, re-design of space or application for a non-
4 use-related variance, special permit, minor modification or administra-
5 tive certification; (b) self-created hardship shall not be allowed; (c)
6 the test for cost infeasibility shall be that of a reasonable return on
7 the owner's investment not maximum return on investment; (d) the test
8 for unreasonably adverse impact on a non-residential conforming use
9 tenant shall be whether residential conversion would necessitate
10 displacement. Such hardship applications shall be submitted to the loft
11 board within nine months of the establishment of the loft board (or, in
12 the case of interim multiple dwellings referred to in subdivision four
13 of section two hundred eighty-one of this article, within nine months of
14 [the effective date of such subdivision four] July twenty-seventh, nine-
15 teen hundred eighty-seven or in the case of interim multiple dwellings
16 made subject to this article by subdivision five of section two hundred
17 eighty-one of this article, within nine months of the effective date of
18 such subdivision five, or, for units that became subject to this article
19 pursuant to the chapter of the laws of two thousand thirteen which
20 amended this paragraph, within nine months of the promulgation of all
21 necessary rules and regulations pursuant to section two hundred eighty-
22 two-a of this article, but shall not be considered, absent a waiver by
23 the loft board, unless the owner has also filed an alteration applica-
24 tion. In determination of any such hardship application, the loft board
25 may demand such information as it deems necessary. In approving any such
26 hardship application, the loft board may fix reasonable terms and condi-
27 tions for the vacating of residential occupancy.
28 § 24. Paragraph (vi) of subdivision 1 of section 284 of the multiple
29 dwelling law, as amended by chapter 135 of the laws of 2010, is amended
30 to read as follows:
31 (vi) Notwithstanding the provisions of paragraphs (i) through (v) of
32 this subdivision the owner of an interim multiple dwelling made subject
33 to this article by subdivision five of section two hundred eighty-one of
34 this article (A) shall file an alteration application within nine months
35 from the effective date of the chapter of the laws of two thousand ten
36 which amended this subparagraph, or, for units that became subject to
37 this article pursuant to the chapter of the laws of two thousand thir-
38 teen which amended this paragraph, within nine months of the promulga-
39 tion of all necessary rules and regulations pursuant to section two
40 hundred eighty-two-a of this article, and (B) shall take all reasonable
41 and necessary action to obtain an approved alteration permit within
42 twelve months from such effective date, or, for units that became
43 subject to this article pursuant to the chapter of the laws of two thou-
44 sand thirteen which amended this paragraph, within twelve months of the
45 promulgation of all necessary rules and regulations pursuant to section
46 two hundred eighty-two-a of this article, and (C) shall achieve compli-
47 ance with the standards of safety and fire protection set forth in arti-
48 cle seven-B of this chapter for the residential portions of the building
49 within eighteen months from obtaining such alteration permit [or eigh-
50 teen months from such effective date, whichever is later], and (D) shall
51 take all reasonable and necessary action to obtain a certificate of
52 occupancy as a class A multiple dwelling for the residential portions of
53 the building or structure within [thirty-six] thirty months from such
54 effective date, or for units that became subject to this article pursu-
55 ant to the chapter of the laws of two thousand thirteen which amended
56 this paragraph within thirty months of the promulgation of all necessary
S. 2320 19
1 rules and regulations pursuant to section two hundred eighty-two-a of
2 this article. The loft board may, upon good cause shown, and upon proof
3 of compliance with the standards of safety and fire protection set forth
4 in article seven-B of this chapter, twice extend the time of compliance
5 with the requirement to obtain a residential certificate of occupancy
6 for periods not to exceed twelve months each.
7 § 25. Section 11-243 of the administrative code of the city of New
8 York is amended by adding a new subdivision ee to read as follows:
9 ee. The department of housing preservation and development shall make
10 information relating to the provisions of this section available on the
11 department's website, and shall provide a contact phone number allowing
12 tenants to determine benefits available pursuant to this section. The
13 department shall convene a task force that shall examine and report on
14 methods to improve the transparency of the program established pursuant
15 to this section.
16 § 26. Severability clause. If any clause, sentence, paragraph, subdi-
17 vision, section or subpart of this act shall be adjudged by any court of
18 competent jurisdiction to be invalid, such judgment shall not affect,
19 impair, or invalidate the remainder thereof, but shall be confined in
20 its operation to the clause, sentence, paragraph, subdivision, section
21 or subpart thereof directly involved in the controversy in which such
22 judgment shall have been rendered. It is hereby declared to be the
23 intent of the legislature that this act would have been enacted even if
24 such invalid provisions had not been included herein.
25 § 27. This act shall take effect immediately and shall be deemed to
26 have been in full force and effect on and after June 1, 2012; provided,
27 that:
28 (a) sections one, two and three of this act shall be deemed to have
29 been in full force and effect on and after December 31, 2011;
30 (b) the amendments made to section 489 of the real property tax law by
31 section three of this act shall not be deemed to change the eligibility
32 for benefits, pursuant to such section and any local law or ordinance
33 providing for benefits pursuant to such section, as a result of conver-
34 sions, alterations or improvements completed before December 31, 2011;
35 (c) the provisions of section fourteen of this act shall be deemed to
36 have been in full force and effect on and after December 31, 2007;
37 (d) the provisions of sections fifteen, sixteen and seventeen of this
38 act shall be deemed to have been in full force and effect on and after
39 December 28, 2010;
40 (e) with respect to any application for a preliminary certificate of
41 eligibility that is filed no later than June 24, 2012, or that is filed
42 for a project that was the subject of mortgage foreclosure proceedings
43 or other lien enforcement litigation by a lender on or before June 24,
44 2012, such project shall be subject to that portion of the definition of
45 "commence" contained in item (1) of clause (iv) of subparagraph (2) of
46 paragraph (b) of subdivision (a) of section 6-09 of title twenty-eight
47 of the rules of the city of New York;
48 (f) sections eighteen, nineteen and twenty of this act shall be deemed
49 to have been in full force and effect on and after June 1, 2011;
50 (g) notwithstanding any inconsistent provision of this act, the amend-
51 ment to subdivision 5 of section 281 of the multiple dwelling law made
52 by section twenty-one of this act in relation to the authority of the
53 loft board to exempt categories or subcategories of units or buildings
54 by rule from determinations of inherently incompatible uses shall be
55 deemed to have been in force and effect on and after June 21, 2010 and
S. 2320 20
1 to authorize rules of the loft board promulgated after such date that
2 make such exemptions; and
3 (h) sections twenty-one, twenty-two, twenty-three and twenty-four
4 shall expire and be deemed repealed on June 30, 2015.
